Financial Data and Key Metrics Changes - Revenue reached nearly RMB 10 billion, representing a 16.1% increase year-over-year [27] - Adjusted EBITDA increased by 20.6% to RMB 4.3 billion, with an adjusted EBITDA margin of 43.3% [34] - Adjusted net profit exceeded RMB 2.8 billion, an 11.6% increase year-over-year [35] - Gross profit margin improved from 39.1% to 42.7%, with a gross profit increase of RMB 900 million [32][38] Business Line Data and Key Metrics Changes - Early phase R&D revenue grew over 35%, while late phase manufacturing revenue increased by nearly 25% [28][29] - The company added a record 86 new projects in the first half of the year, continuing strong momentum from the previous year [4][28] - The backlog grew significantly, 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] Market Data and Key Metrics Changes - North America accounted for nearly 60% of revenue, with a growth rate of 20% [22] - Europe contributed close to 20% of revenue with modest growth, while China accounted for 13% with a single-digit decline [24] - Asia, particularly Japan, Korea, and Singapore, saw revenue growth exceeding 100% [25] Company Strategy and Development Direction - The company emphasizes its unique CRDMO model, which integrates R&D, development, and manufacturing [50][58] - Focus on expanding capabilities in ADCs and bispecifics, with over 300 projects in the pipeline [19][21] - Plans to enhance global capacity, with significant expansions in the US, Ireland, and Singapore [76][80] 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 [27][28] - The company expects to continue benefiting from the increasing number of projects moving through its golden funnel [28] - Management expressed confidence in achieving positive free cash flow for the fourth consecutive year [48] Other Important Information - The company maintained a high employee retention rate of 98.8% and stable employee numbers despite revenue growth [6] - The company has a strong balance sheet with RMB 12.5 billion in cash and a conservative debt level of RMB 2.7 billion [42][47] - The company achieved a 100% success rate in regulatory inspections, reinforcing its quality assurance [6][81] Q&A Session Summary Question: What are the key drivers of revenue growth? - Revenue growth was primarily driven by successful execution of the follow and win the molecule strategies, with late phase and commercial manufacturing revenue growing close to 25% [28][29] Question: How is the company addressing the decline in early phase revenue? - The decline in early phase revenue is attributed to timing issues as several large-scale projects progressed from phase two to phase three, which is expected to be replenished by new projects [29] Question: What is the company's strategy for expanding its market presence? - The company aims to leverage its strong market share in China and capitalize on global licensing trends, expecting revenue to grow significantly as projects are out-licensed to global partners [64][65]

Core Viewpoint - WuXi AppTec has issued a Positive Profit Alert for the first half of 2025, indicating strong financial performance and operational growth driven by its integrated CRDMO business model [1][2][5]. Financial Performance - Total revenue for the first half of 2025 is expected to be approximately RMB20.80 billion, representing a year-over-year increase of approximately 20.6% [5]. - Revenue from Continuing Operations is projected to grow by approximately 24.2% year-over-year [5]. - Adjusted non-IFRS net profit for the first half of 2025 is expected to be approximately RMB6.31 billion, reflecting a year-over-year increase of approximately 44.4% [5]. - Net profit after deducting non-recurring items is expected to be approximately RMB5.58 billion, representing a year-over-year increase of approximately 26.5% [5]. - Net profit attributable to the owners of the Company is expected to be approximately RMB8.56 billion, indicating a year-over-year increase of approximately 101.9% [5]. - Basic earnings per share for the first half of 2025 is expected to be approximately RMB3.01, representing a year-over-year increase of approximately 106.2% [5]. Operational Insights - The company continues to enhance its capabilities and capacity, optimize production processes, and improve operating efficiency in response to customer demand [2][4]. - WuXi AppTec operates across Asia, Europe, and North America, collaborating with nearly 6,000 partners in over 30 countries to advance healthcare innovation [4].