Core Viewpoint - WuXi Biologics reported a revenue of 18.675 billion yuan for 2024, a year-on-year increase of 9.6%, but the net profit decreased by 1.3% to 3.356 billion yuan, marking the second consecutive year of profit decline after a 21.5% drop in 2023 [1][2] Revenue Performance - Revenue growth rates for WuXi Biologics from 2022 to 2024 were 71.6%, 11.6%, and 9.6%, indicating a significant slowdown [2] - Non-COVID business revenue grew by 13.1% in 2024, a sharp decline from 37.7% in 2023, reflecting structural adjustments in global biopharmaceutical R&D demand [2] - North American market revenue surged by 32.5% to 10.696 billion yuan, accounting for 57.3% of total revenue, while European and Chinese revenues fell by 15.9% and 9.6%, respectively [2] Profitability and Cost Structure - The net profit margin decreased from 25.9% in 2022 to 18% in 2024, with net profit declining by 21.5% in 2023 and 1.3% in 2024 [2] - Sales and marketing expenses increased by 61.1% to 474 million yuan, while administrative expenses rose by 11.9% to 1.674 billion yuan [2] - R&D expenses were reduced by 2.5% to 766 million yuan, showcasing flexibility in cost control [2] R&D Pipeline - The total number of projects reached 817, with 151 new projects added in 2024, over half of which are from U.S. clients [3] - The company secured 20 external projects through its "Win Molecular" strategy, including 13 late-stage clinical and commercial production projects [3] - ADC (Antibody-Drug Conjugates) revenue reached 3.944 billion yuan, accounting for 21.1% of total revenue, with a significant increase in the number of completed PPQ projects [3] Order Backlog and Market Position - The total amount of unfulfilled orders decreased by 11% to 18.5 billion USD, primarily due to the removal of 3 billion USD in orders from the sale of an Irish vaccine plant [4] - The company established a research service center in Boston to enhance North American market capabilities, while its Irish and Suzhou facilities focus on high-value products [4] - Despite short-term profit pressures and geopolitical disturbances, the company demonstrates resilience through its 817 ongoing projects and a robust order backlog [4][5]