Financial Data and Key Metrics Changes - In 2025, WuXi AppTec achieved total revenue of RMB 45.46 billion, with revenue from continuing operations growing 21.4% year-over-year to RMB 43.42 billion [6][20] - Adjusted non-IFRS net profit grew 41.3% year-over-year to RMB 14.96 billion, with a non-IFRS net profit margin improving 5.9 percentage points to 32.9% [6][21] - The adjusted non-IFRS gross profit reached RMB 21.89 billion, with a gross profit margin expanding to 48.2%, up 6.6 percentage points year-over-year [20] Business Line Data and Key Metrics Changes - WuXi Chemistry revenue grew 25.5% year-over-year to RMB 36.47 billion, with an adjusted non-IFRS gross profit margin of 52.3% [10] - Small molecule D&M business revenue increased 11.4% year-over-year to RMB 19.92 billion [11] - TIDES revenue nearly doubled, growing 96% year-over-year to RMB 11.37 billion, with a backlog growth of 20.2% [15] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 34.3% year-over-year, while Japan, Korea, and other regions grew 4.1% [7] - Europe and China experienced declines due to fluctuations in project delivery timing [7] Company Strategy and Development Direction - The company remains focused on its integrated CRDMO core business, aiming to enhance global capabilities and operational efficiency [24] - WuXi AppTec plans to maintain a cash dividend distribution plan totaling RMB 5.7 billion in 2026, with a 30% annual cash dividend payout ratio [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining rapid business growth, expecting total revenue to reach RMB 51.3 billion to RMB 53 billion in 2026, with continuing operations revenue growing 18%-22% year-over-year [24] - The company is closely monitoring geopolitical situations and their potential impact on operations, emphasizing a mature and diversified procurement network [32][60] Other Important Information - WuXi AppTec achieved MSCI AAA and CDP Climate Change A ratings in 2025, reflecting its commitment to sustainability [8] - The company completed 741 quality audits and inspections in 2025, maintaining high standards for quality and compliance [9] Q&A Session Summary Question: Impact of currency exchange on guidance - Management acknowledged the impact of FX movements but emphasized strong visibility in their CRDMO business model [30] Question: Geopolitical impact on margins - Management noted that while there are potential risks to raw material costs, they have not seen direct impacts on operations [32] Question: TIDES CapEx and future modalities - Management indicated that while peptide demand remains high, they are also seeing growth in oligonucleotides and complex small molecules [34] Question: Client outsourcing strategy changes - Management stated that large pharma continues to manufacture internally but they remain committed to improving capabilities and providing services [36] Question: Current utilization rate of small molecule capacity - Management highlighted their ability to provide high-quality data, which drives business for their Biology and Testing segments [38] Question: FDA's new trial requirements - Management believes that regulatory streamlining will benefit patients and potentially increase demand for drug substances [40] Question: Positioning in oral small molecule GLP-1 CDMO business - Management confirmed strong growth in the small molecule sector, particularly in GLP-1 drugs [47] Question: Revenue breakdown and geographical mix - Management noted strong growth across all regions, with a focus on customer needs driving geographic revenue growth [49][50] Question: Sustainability of TIDES growth - Management expressed confidence in sustained growth due to a robust pipeline and increasing demand for their products [54] Question: Timeline for new facility contributions - Management stated that new facilities in China can become operational in less than 12 months [57] Question: Impact of Middle East situation on investments - Management reassured that their long-term strategy remains unchanged despite geopolitical tensions [59] Question: Confidence in new orders and revenue guidance - Management expressed confidence in converting backlog into revenue and maintaining growth trajectory [65] Question: WuXi AppTec's position on the 1260H list - Management stated they are confident WuXi AppTec will not be included in the list and will continue to monitor the situation [70]

WuXi AppTec 2025 Annual Results March 24, 2026 1 Forward-Looking Statements This presentation may contain certain statements that are or may be forward looking, which can be recognized by the use of words such as "expects", "plans", "will", "estimates", "projects", "intends", or words of similar meaning. Such forward-looking statements are not historical facts, but instead are predictions about future events based on our beliefs, development strategy, business plan as well as assumptions made by and informa ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The company reported a revenue growth of 18.61% year-on-year for the first three quarters of 2025, with a non-GAAP net profit growth of 42.51% [3][6] - The TIDES business segment showed exceptional performance, with a revenue increase of 121.1% [8][12] - The company expects its continuous operating business revenue growth to return to double digits, with an adjusted growth forecast of 17-18% for 2025 [11][12] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 328.57 billion yuan, a year-on-year increase of 18.61%, and a net profit attributable to shareholders of 120.76 billion yuan, up 84.84% [6][7] - The gross margin improved to 46.62%, an increase of 5.97 percentage points year-on-year, while the net margin rose to 37.15%, up 13.32 percentage points [7] Business Segments - The company's revenue from its three main business segments for the first three quarters of 2025 was as follows: - Chemical business: 259.8 billion yuan (+29.28%) - Testing business: 41.69 billion yuan (-0.04%) - Biological business: 19.5 billion yuan (+6.64%) [8] - The chemical business's small molecule D&M revenue was 142.4 billion yuan, a growth of 14.1% [8] Future Outlook - The company has raised its revenue forecast for 2025-2027 to 444.93 billion yuan, 512.59 billion yuan, and 584.79 billion yuan respectively [12] - The adjusted net profit forecasts for the same period are 151.44 billion yuan, 143.44 billion yuan, and 164.82 billion yuan respectively [12]

Financial Data and Key Metrics Changes - The company's total revenue for the first three quarters of 2025 reached RMB 32.86 billion, with revenue from continuing operations growing 22.5% year-over-year to RMB 32.45 billion [6][7] - Adjusted non-IFRS net profit increased by 43.4% to RMB 10.54 billion, with a non-IFRS net profit margin improving to 32.1% [7][20] - The adjusted non-IFRS gross profit reached RMB 15.46 billion, with the gross profit margin improving from 41.6% in 2024 to 47% [19][20] Business Line Data and Key Metrics Changes - WuXi Chemistry's revenue grew 29.3% to RMB 25.98 billion, with an adjusted non-IFRS gross profit margin improving 5.8 percentage points to 51.3% [8][9] - Small molecule D&M business revenue grew 14.1% to RMB 14.24 billion, with a total react volume of small molecule APIs exceeding 4,000 cu m [9][10] - WuXi TIDES revenue surged 121.1% year-over-year to RMB 7.84 billion, with a backlog growth of 17.1% [10][11] Market Data and Key Metrics Changes - Revenue from the U.S. grew 31.9%, while Europe saw a 13.5% increase, and revenue from China remained flat [8] - The company reported a record backlog for continuing operations of RMB 59.88 billion, growing 41.2% year-over-year [7][8] Company Strategy and Development Direction - The company is focusing on enhancing its core CRDMO capabilities and expanding global capacity to meet customer demand [7][25] - A strategic decision was made to sell 100% of its China-based clinical research services business to Hillhouse Investment Management, which will be classified as a discontinued operation [23][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in continuing operations revenue for 2025, raising the growth rate expectation to 17%-18% [25][26] - The company anticipates total revenue for 2025 to be between RMB 43.5 billion and RMB 44.0 billion, up from previous guidance [26] Other Important Information - The company has implemented a total of RMB 6.88 billion in cash dividends, share repurchases, and cancellations, representing over 70% of the net profit in 2024 [27][28] - The company is actively advancing global capacity expansion, with CapEx payments reaching RMB 3.57 billion in the first three quarters [22] Q&A Session Summary Question: What is driving the backlog growth, particularly in small molecules? - Management indicated that the backlog growth is primarily driven by small molecule D&M, especially from late-stage clinical and commercial projects, with a historical high backlog approaching RMB 60 billion [30][32] Question: What is the outlook for margins, especially for WuXi Chemistry? - The margin increase is attributed to continuous optimization of manufacturing processes and a higher proportion of late-phase and commercial projects, with expectations to maintain strong margins moving forward [35][36] Question: How does the new BIOSECURE bill affect customer sentiment? - Management noted that customers have not shown a significant change in demand patterns despite the geopolitical uncertainties, maintaining strong service demand [40][42] Question: What is the expected timing for the disposal of the clinical research services business? - The revenue guidance for continuing operations has excluded the clinical research services business, which will be reclassified as discontinued operations in the annual report [47] Question: What are the key drivers for the small molecule CDMO business? - The small molecule pipeline includes several high-potential projects, including GLP-1 and PCSK9, with a strong focus on capturing late-phase and commercial opportunities [70]

Financial Data and Key Metrics Changes - The company's total revenue for the first three quarters of 2025 reached RMB 32.86 billion, with revenue from continuing operations growing 22.5% year-over-year to RMB 32.45 billion [6][7] - Adjusted non-IFRS net profit increased by 43.4% to RMB 10.54 billion, with a non-IFRS net profit margin improving to 32.1% [7][20] - The adjusted non-IFRS gross profit margin improved from 41.6% in 2024 to 47% in the first three quarters of 2025 [19][20] Business Line Data and Key Metrics Changes - WuXi Chemistry's revenue grew 29.3% to RMB 25.98 billion, with an adjusted non-IFRS gross profit margin improving 5.8 percentage points year-over-year to 51.3% [8][9] - WuXi TIDES revenue surged 121.1% year-over-year to RMB 7.84 billion, with a backlog growth of 17.1% [10] - WuXi Testing revenue remained flat at RMB 4.17 billion, while lab testing service revenue grew 7.2% year-over-year [13][14] - WuXi Biology revenue increased by 6.6% to RMB 1.95 billion, with a slight decline in gross profit margin due to market pricing impacts [17] Market Data and Key Metrics Changes - Revenue from the U.S. grew 31.9%, while Europe saw a 13.5% increase, and revenue from China remained relatively flat [8] - The company's backlog for continuing operations reached a record high of RMB 59.88 billion, growing 41.2% year-over-year [7][32] Company Strategy and Development Direction - The company is focusing on enhancing its core CRDMO capabilities and expanding global capacity to meet customer demand [7][25] - A strategic decision was made to sell 100% of its China-based clinical research services business to Hillhouse Investment Management, which will be classified as a discontinued operation [23][24] - The company expects to achieve double-digit growth in continuing operations revenue for 2025, raising the growth rate guidance to 17% to 18% [25][26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand for enabling services and the resilience of the CRDMO business model [25] - The company anticipates improved operating efficiency and financial management capabilities to sustain growth momentum [19][22] Other Important Information - The company has implemented a total of RMB 6.88 billion in cash dividends, share repurchases, and cancellations, representing over 70% of the net profit in 2024 [27][28] - The company is actively advancing global capacity expansion, with CapEx payments reaching RMB 3.57 billion in the first three quarters [22] Q&A Session Summary Question: What is driving the backlog growth, particularly in the small molecule segment? - Management indicated that the backlog growth is primarily driven by late-stage clinical and commercial projects, with a significant contribution from small molecule DNM [30][32] Question: What is the outlook for margins, especially for WuXi Chemistry? - The high margins are attributed to continuous optimization of manufacturing processes and an increase in late-phase and commercial projects, which improve utilization efficiency [35][36] Question: How do U.S. customers view the new BioSecure bill and its impact on sourcing? - Management noted that U.S. customers continue to demand services from global sites, and there has not been a significant change in sourcing patterns due to the new bill [40][42] Question: How will the disposal of the clinical research services business affect overall margins? - The margin mix for WuXi Testing is expected to improve following the divestiture of the clinical CRO business [86] Question: What are the plans for using the proceeds from recent disposals? - The proceeds will be reinvested into global growth and capacity building, supporting the company's CRDMO strategy [86]

Financial Data and Key Metrics Changes - The company's total revenue reached RMB32.86 billion, with revenue from continuing operations growing 22.5% year over year to RMB32.45 billion [7] - Adjusted non-IFRS net profit increased by 43.4% to RMB10.54 billion, with a net profit margin of 32.1% [7][27] - The backlog for continuing operations reached a record RMB59.88 billion, growing 41.2% year over year [8] Business Line Data and Key Metrics Changes - Chemistry's CRDMO revenue grew 29.3% to RMB25.98 billion, with an adjusted non-IFRS gross profit margin improving by 5.8 percentage points to 51.3% [11] - Small molecule DNM business revenue increased by 14.1% to RMB14.24 billion [13] - WuXi Tides revenue surged 121.1% to RMB7.84 billion, with a backlog growth of 17.1% [14] Market Data and Key Metrics Changes - Revenue from the U.S. region grew 31.9%, while Europe saw a 13.5% increase, and revenue from Japan, Korea, and the rest of the world grew 9.2% [10] - Revenue from China remained relatively flat, indicating a diversified revenue stream [10] Company Strategy and Development Direction - The company is focusing on enhancing core capabilities and expanding capacity to meet customer demand [7] - An agreement was signed to sell 100% of the equity of its China-based clinical research service business, which will be classified as a discontinued operation [32][33] - The company raised its full-year guidance for continuing operations revenue growth to 17% to 18% [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand for enabling services and the resilience of the CRDMO business model [36] - The company expects to improve adjusted non-IFRS net profit margins in 2025 and anticipates free cash flow to increase [37][38] Other Important Information - The company has implemented a total of RMB6.88 billion in cash dividends and share repurchases, representing over 70% of net profit in 2024 [38] - The company is actively advancing global capacity expansion, with CapEx payments reaching RMB3.57 billion in the first three quarters [30] Q&A Session Summary Question: What is driving the backlog growth, particularly in small molecules and Tides business? - Management noted that the backlog has reached a historical high, driven by small molecule DNM and Tides business, with a year-over-year growth of approximately 30% [44][45] Question: What is the outlook for margins moving forward? - The company indicated that margin growth is driven by continuous optimization of manufacturing processes and an increase in late-phase and commercial projects [50][51] Question: How do U.S. customers view the new legislative proposals regarding biotechnology? - Management stated that they are closely monitoring legislative changes and have not seen a significant shift in customer demand patterns [54][58] Question: What is the impact of the disposal of the clinical research service business on margins? - The margin mix is expected to improve following the divestiture of the clinical CRO business, enhancing the overall margin of the WuXi testing business [110] Question: How will the company utilize the cash from the recent transactions? - The cash will be used to support global growth and capacity building initiatives [112]

Core Viewpoint - The company reported better-than-expected performance for 1H25, driven by smooth project progress, commercialization ramp-up, and improved operational efficiency [1] Financial Performance - Revenue for 1H25 reached 9.95 billion yuan, a year-on-year increase of 16.1%, with continuing operations revenue up by 20.2% [1] - Gross margin stood at 42.7%, an increase of 3.6 percentage points year-on-year [1] - Adjusted EBITDA was 4.31 billion yuan, up 20.6% year-on-year, corresponding to a profit margin of 43.3% [1] - Adjusted net profit reached 2.84 billion yuan, a year-on-year increase of 11.6%, with a corresponding profit margin of 28.5% [1] - The company raised its revenue growth forecast for 2025 to 14%-16% and indicated steady profit level improvements and significant free cash flow growth [1] Business Development Trends - The CRDMO business model is fully operational, with over 50 molecular projects empowered as of 1H25, and potential milestone payments reaching 9 billion USD [2] - Revenue from preclinical stage projects was 4.15 billion yuan, a year-on-year increase of 35.2%, driven by research services and preclinical development project revenue conversion [2] - Revenue from Phase III clinical and commercialization stages was 4.29 billion yuan, up 24.9% year-on-year, benefiting from the advancement of early projects and ongoing commercialization [2] - The company has 67 Phase III clinical projects and 24 commercialization projects as of 1H25, with 25 PPQ projects scheduled for 2025 [2] - A total of 86 new projects were signed in 1H25, with over 70% being bispecific, multi-specific, and ADCs, showcasing the company's complex molecular technology capabilities [2] - The company secured 9 new molecules in 1H25, including 2 Phase III projects, primarily from the U.S. [2] - The backlog of uncompleted orders reached 20.3 billion USD, with approximately 4.2 billion USD in orders not completed within three years [2] Global Capacity Expansion - Capital expenditure for 1H25 was approximately 1.9 billion yuan, with an expected total of 5.3 billion yuan for the year [3] - In Singapore, the modular biopharmaceutical (DP) production facility has commenced construction, while the modular raw material (DS) production facility is in the design phase [3] - In Ireland, MFG6.2 has completed its first engineering batch and PPQ production, while MFG7 has completed its second 12kL scale PPQ production [3] - In the U.S., construction of MFG11 is ongoing, providing end-to-end R-D-M services [3] - In China, the 15kL raw material production line in Hangzhou has completed its first commercial PPQ production, and the Chengdu microbial commercialization base has officially started construction [3] Profit Forecast and Valuation - Due to smooth project progress and improved operational efficiency, the company raised its net profit forecast for 2025/2026 by 5.5%/1.6% to 4.21/4.71 billion yuan [3] - Adjusted profit forecasts for 2025/2026 were increased by 2.5%/4.1% to 5.11/5.58 billion yuan [3] - The company maintains an outperform rating, with the current stock price corresponding to adjusted P/E ratios of 21.7x/19.6x for 2025/2026 [3] - The target price was raised by 10.8% to 36 HKD, corresponding to adjusted P/E ratios of 26.3x/23.7x for 2025/2026, indicating a potential upside of 20.9% from the current stock price [3]

Core Viewpoint - The company has raised its profit forecasts for 2025/2026 due to smooth project progress and improved operational efficiency, maintaining an outperform rating in the industry [1] Financial Performance - The company reported 1H25 revenue of 9.95 billion, a year-on-year increase of 16.1%, with a continuous operating business revenue growth of 20.2% [2] - Gross margin reached 42.7%, up 3.6 percentage points year-on-year, while adjusted EBITDA was 4.31 billion, reflecting a 20.6% increase [2] - Adjusted net profit for 1H25 was 2.84 billion, a year-on-year increase of 11.6%, with a corresponding profit margin of 28.5% [2] Business Model and Growth - The CRDMO business model is fully operational, with over 50 molecular projects enabled, and potential milestone payments reaching 9 billion [3] - Revenue from preclinical stage projects was 4.15 billion, up 35.2% year-on-year, driven by research services and preclinical development project conversions [3] - Revenue from clinical phase III and commercialization reached 4.29 billion, a 24.9% increase, supported by the advancement of early projects and ongoing commercialization [3] Project and Order Status - The company signed 86 new projects in 1H25, with over 70% being complex molecules, showcasing its technical capabilities [4] - The company secured 9 new molecular projects, including 2 clinical phase III projects, primarily from the U.S. [4] - The total unfulfilled orders reached 20.3 billion, with approximately 4.2 billion in orders expected to be completed within three years [4] Capacity Expansion - Capital expenditure for 1H25 was approximately 1.9 billion, with an expected total of 5.3 billion for the year [5] - In Singapore, the modular biopharmaceutical production facility has commenced construction, while the modular bulk production facility is in the design phase [5] - In Ireland, the MFG6.2 facility has completed its first engineering batch and PPQ production, and MFG7 has completed its second 12kL scale PPQ production [5]

Core Viewpoint - The company has raised its net profit forecasts for 2025 and 2026 by 5.5% and 1.6% to 4.21 billion and 4.71 billion yuan respectively, due to smooth project progress and improved operational efficiency [1] Financial Performance - The company reported 1H25 revenue of 9.95 billion yuan, a year-on-year increase of 16.1%, with a continuous operating business revenue growth of 20.2% [2] - Gross margin reached 42.7%, up 3.6 percentage points year-on-year, while adjusted EBITDA was 4.31 billion yuan, reflecting a 20.6% increase [2] - Adjusted net profit for 1H25 was 2.84 billion yuan, an 11.6% year-on-year increase, exceeding expectations due to successful project advancements and improved efficiency [2] CRDMO Business Model - As of 1H25, the company has empowered over 50 molecular projects, with potential milestone payments and sales shares amounting to 9 billion USD [3] - Revenue from preclinical stage reached 4.15 billion yuan, a 35.2% increase, driven by research services and preclinical development project conversions [3] - Revenue from clinical phase III and commercialization reached 4.29 billion yuan, a 24.9% increase, supported by the advancement of early projects and ongoing commercialization [3] Project and Order Status - The company signed 86 new projects in 1H25, with over 70% being complex molecules, showcasing its technical capabilities [4] - The company secured 9 new molecular projects, including 2 clinical phase III projects, primarily from the U.S. [4] - As of 1H25, the total unfulfilled orders reached 20.3 billion USD, with approximately 4.2 billion USD in orders expected to be completed within three years [4] Global Capacity Expansion - Capital expenditure for 1H25 was approximately 1.9 billion yuan, with an expected total of 5.3 billion yuan for the year [5] - In Singapore, the modular biopharmaceutical production facility has commenced construction, while the modular bulk production facility is in the design phase [5] - In Ireland, the MFG6.2 has completed its first engineering batch and PPQ production, and MFG7 has completed its second 12kL scale PPQ production [5]

Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [28] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [35][36] - Adjusted net profit exceeded RMB 2.8 billion, reflecting an 11.6% year-over-year increase [36] - Gross profit margin improved from 39.1% to 42.7%, with adjusted gross profit margin at 45.6% [7][40] Business Line Data and Key Metrics Changes - Research and Development (R&D) revenue grew over 35% year-over-year, driven by a strong pipeline of projects [30] - Late-phase and commercial manufacturing revenue grew close to 25%, representing over 43% of the total portfolio [30] - Early-phase revenue saw a decline due to timing issues with large-scale clinical manufacturing projects transitioning from phase two to phase three [30][31] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [23] - Europe contributed close to 20% of revenue, showing modest growth as the company shifts focus from CMO projects to early-phase programs [24] - China represented 13% of revenue, experiencing a single-digit decline primarily due to out-licensing of programs to global partners [25] - Asia, particularly Japan, Korea, and Singapore, showed significant growth, now accounting for nearly 7% of revenue with more than double the growth rate [26] Company Strategy and Development Direction - The company emphasizes a unique CRDMO model, focusing on both service-based and IP-driven revenue streams [50][57] - The strategy includes expanding capacity globally, with significant investments in facilities in the US, Ireland, and Singapore [47][79] - The company aims to leverage its strong portfolio in ADCs and bispecifics, which now account for over 40% of its project portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the company has absorbed post-COVID industry adjustments and is positioned for accelerated growth [28] - The backlog has shown significant growth, with milestone backlog increasing from RMB 7 billion to RMB 9 billion and service backlog from RMB 10 billion to RMB 11.3 billion [16][17] - The company expects to continue benefiting from global biotech trends, including M&A activities and out-licensing of Chinese assets to global partners [63][64] Other Important Information - The company achieved a 100% success rate in regulatory inspections, hosting 44 inspections [6] - Employee retention rate remains high at 98.8%, with no increase in total employee numbers over the past 18 months [42] - The company has a strong cash position with RMB 12.5 billion on hand and a conservative debt level of RMB 2.7 billion [43][47] Q&A Session Summary Question: What are the key drivers for revenue growth in the upcoming quarters? - Management highlighted the successful execution of the follow and win molecule strategies, with a strong pipeline of late-phase projects expected to ramp up [29] Question: How does the company plan to address the decline in early-phase revenue? - The decline is attributed to timing issues with large-scale projects transitioning to manufacturing, which is expected to be replenished by new projects in the pre-IND space [30][31] Question: What is the company's outlook on the global market trends? - Management expressed confidence in continued growth driven by M&A activities and the out-licensing of Chinese biotech programs to global partners, which typically results in significant revenue amplification [63][64]