2025-10-27 02:02Financial 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]