Financial Data and Key Metrics Changes - In the first nine months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, while revenue per hectoliter increased by 0.4% [6] - Normalized EBITDA decreased by 7.7%, and the normalized EBITDA margin contracted by 37 basis points [6] - In the third quarter, total volumes and revenue decreased by 8.6% and 8.4%, respectively, with normalized EBITDA decreasing by 6.9% but the normalized EBITDA margin expanding by 46 basis points [6][10] Business Line Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 7.9% and 8.7%, respectively, while normalized EBITDA decreased by 9.7% [7] - In China, volumes in the third quarter decreased by 11.4%, and revenue decreased by 15.1%, with a normalized EBITDA decrease of 17.4% [7] - In APAC East, volumes decreased by 0.5%, while revenue and revenue per hectoliter increased by 1.8% and 2.3%, respectively [11] Market Data and Key Metrics Changes - In India, the company delivered double-digit revenue growth in the third quarter, with the Budweiser brand growing ahead of the industry [10] - In South Korea, volumes were flattish, with revenue and revenue per hectoliter growing by mid-single digits [11] - The contribution of the in-home channel to total volumes and revenue has continued to increase, with premium and super premium segments outpacing traditional channels [35] Company Strategy and Development Direction - The company is focused on improving top-line performance by enhancing route-to-market strategies, increasing investments in mega brands, and leading innovation in packaging and product offerings [8][10] - There is a clear priority to reignite growth and rebuild market share momentum, particularly in China [4][5] - The company aims to expand its footprint through targeted geographic expansion and restore excellence in execution [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in China due to a soft economic cycle but emphasized opportunities for improvement in inventory management and resource allocation [4][29] - The company remains optimistic about growth in India and South Korea, with a focus on premiumization and innovation to capture market share [10][12] - Management highlighted the importance of maintaining investments in both on-trade and off-trade channels to support brand building and consumer engagement [46][68] Other Important Information - The company is actively managing inventory levels, with current inventories lower than the previous year, and is focused on optimizing its route-to-market [29] - The company is committed to upholding compliance standards amid ongoing customs disputes in South Korea and Taiwan [72][74] Q&A Session Summary Question: Brand performance in China and mega brands' trends - Management discussed the impact of in-home consumption trends and innovations in product offerings, particularly for Budweiser and Corona [16][17] Question: Demand trends in South Korea - Management noted that while the industry remains soft, there are pockets of growth in non-alcoholic and flavored beers, with a strong performance from the core portfolio [21][24] Question: Outlook for the China market - Management confirmed proactive inventory management and expressed cautious optimism for a rebound in selling performance [28][30] Question: In-home channel penetration and expansion plans - Management indicated that the in-home channel currently accounts for about 60% of the industry, with plans to increase penetration closer to industry averages [31][32] Question: Strategies for low alcohol beer market - Management highlighted ongoing innovations in non-alcoholic and low-alcohol products, particularly in South Korea, where consumer interest is growing [52][55] Question: Update on Korean customs tax dispute and Taiwan anti-dumping duties - Management provided updates on ongoing customs disputes and adjustments in tariff rates in Taiwan, emphasizing the importance of market access [72][74]

Financial Data and Key Metrics Changes - In the first nine months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, while revenue per hectoliter increased by 0.4% [7] - Normalized EBITDA decreased by 7.7%, and the normalized EBITDA margin contracted by 37 basis points [7] - In the third quarter, total volumes and revenue decreased by 8.6% and 8.4%, respectively, with normalized EBITDA decreasing by 6.9% but the normalized EBITDA margin expanding by 46 basis points [7] Business Line Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 7.9% and 8.7%, respectively, with normalized EBITDA decreasing by 9.7% [8] - In China, volumes in the third quarter decreased by 11.4%, revenue decreased by 15.1%, and revenue per hectoliter decreased by 4.1% [8] - In APAC East, volumes decreased by 0.5%, while revenue and revenue per hectoliter increased by 1.8% and 2.3%, respectively [12] Market Data and Key Metrics Changes - In India, the company delivered double-digit revenue growth in the third quarter, translating into strong EBITDA performance [11] - In South Korea, volumes were flattish, with revenue and revenue per hectoliter both growing by mid-single digits [12] Company Strategy and Development Direction - The company is focused on improving top-line performance by enhancing route-to-market strategies, increasing investment in mega brands, and leading innovation within the industry [9] - The strategy includes expanding the in-home channel and premiumizing the product offerings to capture growth opportunities [9][10] - The company aims to restore excellence in execution and improve market share momentum [4][5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in China due to a soft economic cycle but emphasized a clear view of improvement opportunities [4] - The company remains committed to operational excellence and is optimistic about long-term growth despite current market conditions [5][11] Other Important Information - The company continues to leverage technology to enhance commercial capabilities and optimize route-to-market strategies [11] - The performance in South Korea and India has been solid, with ongoing investments in marketing and product innovation [11][12] Q&A Session Summary Question: Insights on brand performance in China - Management highlighted the importance of aligning brand performance with channel strategies, particularly focusing on in-home consumption and innovations [18][20] Question: Demand trends in Korea - Management noted that while the overall industry remains soft, there are pockets of growth in non-alcoholic and flavored beers, and the company is well-positioned to capture these opportunities [25][27] Question: Outlook for the China market - Management confirmed proactive inventory management and a focus on maintaining healthy route-to-market strategies, with expectations for gradual improvements [30][31] Question: In-home channel penetration - Management indicated that the in-home channel currently accounts for over 50% of their mix, with plans to increase this closer to the industry average [32][34] Question: Branding strategy for Harbin - Management expressed confidence in the Harbin brand's ability to compete nationally, particularly in Guangdong, and emphasized the need for a diverse portfolio to meet local consumer needs [39][42] Question: Commercial investment allocation - Management stated that investments are being sustained in both on-trade and off-trade channels, with a shift towards in-home channels as consumer preferences evolve [66][68] Question: Updates on Korean customs tax dispute - Management confirmed that the dispute is ongoing, with non-underlying charges recorded, but emphasized that the potential penalty exposure is not expected to be material [72][74]

Financial Data and Key Metrics Changes - In the first nine months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, while revenue per hectoliter increased by 0.4% [8] - Normalized EBITDA decreased by 7.7%, and the normalized EBITDA margin contracted by 37 basis points [8] - In Q3 2025, total volumes and revenue decreased by 8.6% and 8.4%, respectively, with normalized EBITDA decreasing by 6.9% but the normalized EBITDA margin expanding by 46 basis points [8][9] Business Line Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 7.9% and 8.7%, respectively, with normalized EBITDA decreasing by 9.7% [10] - In China, volumes in Q3 decreased by 11.4%, revenue decreased by 15.1%, and revenue per hectoliter decreased by 4.1% [10] - In APAC East, volumes decreased by 0.5%, while revenue and revenue per hectoliter increased by 1.8% and 2.3%, respectively [14] Market Data and Key Metrics Changes - In India, the company delivered double-digit revenue growth in Q3, with the Budweiser brand growing ahead of the industry [13] - In South Korea, volumes were flattish, with revenue and revenue per hectoliter growing by mid-single digits [14] - The contribution of the in-home channel to total volume and revenue has continued to increase, with premium and super premium segments outpacing contributions from Chinese restaurants [42] Company Strategy and Development Direction - The company is focused on improving top-line performance through strengthening route-to-market, increasing investment in mega brands, leading innovation, and expanding geographic footprint [11] - The strategy includes enhancing the in-home channel and premiumizing the product offerings to capture growth opportunities [11][12] - The company is committed to leveraging technology to enhance commercial capabilities and optimize route-to-market [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in China due to a soft economic cycle but emphasized a clear view of improvement opportunities [6] - The company remains optimistic about growth in India and South Korea, with a focus on premiumization and innovation [13][30] - Management highlighted the importance of maintaining investments in both on-trade and off-trade channels despite current pressures [56] Other Important Information - The company is actively managing inventory levels, with current inventories lower than the previous year [35] - There are ongoing customs tax disputes in South Korea, with non-underlying charges related to these claims amounting to $84 million [82] - In Taiwan, a provisional tariff was slightly adjusted down to 31.3% [84] Q&A Session Summary Question: Can you provide more details on brand performance in China, particularly for mega brands? - Management discussed the impact of the in-home channel and innovations like larger packaging formats to improve brand performance [21][22] Question: What is the outlook for the South Korean market given the weak industry demand? - Management noted that while the industry remains soft, there are pockets of growth in non-alcoholic and flavored beers, and the company continues to gain market share [30][31] Question: What is the current penetration level of the in-home channel in China? - Management indicated that the in-home channel accounts for about 60% of the industry but only over 50% of the company's channel mix, highlighting significant growth opportunities [38] Question: How does the company allocate resources between on-trade and off-trade channels? - Management stated that while investments in on-trade channels are maintained for brand building, a larger proportion of spending is directed towards in-home channels [77] Question: What are the strategies for low alcohol beer products? - Management emphasized ongoing innovation in non-alcoholic and low-alcohol beers, with a focus on consumer needs and market maturity [64][66] Question: Can you provide updates on the Korean customs tax dispute and Taiwan's anti-dumping duties? - Management confirmed the ongoing customs tax dispute and the slight adjustment in Taiwan's tariff rate, emphasizing the importance of maintaining market access [82][84]

Financial Data and Key Metrics Changes - The company reported revenue of $468.0 million, an increase of 7.6% quarter-on-quarter and 9.5% year-on-year, primarily driven by growth in SMT [9][10] - Adjusted gross margin for the quarter was 37.7%, lower than typical levels due to a larger contribution from SMT and lower SEMI gross margin [10][11] - Adjusted operating profit was $124.4 million HKD, down 26.6% quarter-on-quarter and 30.3% year-on-year [11] - Adjusted net profit was $101.9 million HKD, down 24.4% quarter-on-quarter but up 245.2% year-on-year [11] Business Line Data and Key Metrics Changes - SEMI segment revenue was $240.5 million, down 6.5% quarter-on-quarter but up 5.0% year-on-year, with bookings of $207.8 million, down 1.7% quarter-on-quarter and 12.4% year-on-year [13][14] - SMT segment revenue was $227.5 million, up 28% quarter-on-quarter and 14.6% year-on-year, with bookings of $254.7 million, down 5% quarter-on-quarter but up 51.8% year-on-year [15][16] Market Data and Key Metrics Changes - The company noted strong demand in China driven by EVs and high factory utilization across all sectors [3] - The company expects Q4 2025 revenue to be between $470 million and $530 million, indicating growth supported by momentum in both SEMI and SMT [17] Company Strategy and Development Direction - The company aims to maintain its leadership in advanced packaging, particularly in TCB for HBM4 and advanced logic, driven by AI infrastructure demand [3][17] - The strategic restructuring, including the liquidation of the Sun Churn AEC plan, is expected to improve cost competitiveness and agility in global manufacturing operations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for TCB demand and noted that the AI ecosystem investments will drive future growth [17] - The company acknowledged uncertainties in the operating environment but emphasized its global presence to navigate potential impacts [17] Other Important Information - The company achieved a book-to-bill ratio of 1.04 for the quarter, maintaining a ratio above one since Q1 2025 [10] - The company experienced an isolated bookings cancellation in Q3 for panel deposition tools, which was a one-off occurrence [9][10] Q&A Session Summary Question: HBM4 transition and market share - Management confirmed they are leading the transition to HBM4 and have secured orders from two major HBM players, indicating a strong market position [20][23] Question: Impact of technology roadmaps on demand - Management noted that demand for TCB is driven by the timing of key customers' technology roadmaps, with expectations for growth in Q4 [25][26] Question: OpEx and future estimates - Management indicated that OpEx will remain similar to prior years with some marginal increases due to ongoing R&D investments [36][37] Question: TCB fluxless application timeline - Management expects significant ramp-up for fluxless TCB applications in 2026, with ongoing progress in logic applications [38][40] Question: Customer concentration for TCB equipment - Management confirmed a broadening of TCB customer base beyond leading foundries to include top AI customers [64] Question: Gross margin outlook for SEMI solutions - Management expects slight margin accretion for SEMI's margin in Q4, with long-term expectations for recovery to mid-40% levels [59][60]

Financial Data and Key Metrics Changes - The company reported revenue of $468.0 million for Q3 2025, an increase of 7.6% quarter-on-quarter and 9.5% year-on-year, primarily driven by growth in SMT [9][10] - Adjusted gross margin for Q3 was 37.7%, lower than typical levels due to a larger contribution from SMT and lower SEMI gross margin [10][11] - Adjusted net profit was HKD 101.9 million, down 24.4% quarter-on-quarter but up 245.2% year-on-year [11] - The group achieved a book-to-bill ratio of 1.04 for the quarter, maintaining a ratio above one since Q1 2025 [10] Business Line Data and Key Metrics Changes - SEMI segment revenue was $240.5 million, down 6.5% quarter-on-quarter but up 5.0% year-on-year, driven by demand for wire bonders and die bonders [13] - SMT segment revenue was $227.5 million, up 28% quarter-on-quarter and 14.6% year-on-year, supported by AI servers and EV demand in China [15] - SEMI's adjusted gross margin was 41.3%, lower than normal due to a higher contribution from wire bonders and lower TCB revenue [14] Market Data and Key Metrics Changes - The company noted strong demand in China driven by EVs and high factory utilization across all sectors [3] - The group expects Q4 2025 revenue to be between $470 million and $530 million, indicating growth supported by momentum in both SEMI and SMT [17] Company Strategy and Development Direction - The company aims to solidify its leadership in TCB technology, particularly in HBM4, and anticipates a total addressable market exceeding $1 billion by 2027 [17] - The strategic restructuring, including the voluntary liquidation of the Sun Churn AEC plan, is expected to enhance cost competitiveness and operational agility [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for TCB demand, citing a strong AI tailwind and ongoing investments in AI infrastructure [31] - The company acknowledged uncertainties in the automotive and industrial markets but noted a stable demand from China [17] Other Important Information - The company experienced an isolated booking cancellation in Q3 for panel deposition tools, which was a one-off occurrence [9][10] - The group closed the quarter with a backlog of $867.7 million [10] Q&A Session Summary Question: HBM4 Transition and Market Share - Management confirmed they are a primary supplier for the HBM4 market, having secured orders from two major HBM players [20][23] Question: Advanced Packaging Demand Pause - Management indicated that the pause in demand was due to the timing of key customers' technology roadmaps, with confidence in future orders aligning with new architecture launches [25][26] Question: Operating Expenses and Future Projections - Management stated that operating expenses would remain similar to prior years, with ongoing investments in R&D and infrastructure [36][37] Question: TCB Fluxless Application Timeline - Management expects significant ramp-up for fluxless TCB applications in 2026, as the industry moves towards higher stacking [38][40] Question: Customer Concentration and Future Opportunities - Management noted a broadening of TCB customer base beyond leading foundries, engaging with top AI customers globally [64] Question: Gross Margin Outlook for SEMI Solutions - Management anticipates slight margin accretion for SEMI in Q4, with expectations for gross margins to return to mid-40% levels in the long run [59][60]

Financial Data and Key Metrics Changes - The company reported revenue of $468.0 million USD for Q3 2025, an increase of 7.6% quarter-on-quarter and 9.5% year-on-year, primarily driven by growth in SMT [9][10] - Adjusted gross margin for Q3 was 37.7%, lower than typical levels due to a larger contribution from SMT and lower SEMI gross margin [10][11] - Adjusted net profit was $101.9 million HKD, down 24.4% quarter-on-quarter but up 245.2% year-on-year [11] Business Line Data and Key Metrics Changes - SEMI segment revenue was $240.5 million USD, down 6.5% quarter-on-quarter but up 5.0% year-on-year, driven by stronger demand for wire bonders and die bonders [12] - SMT segment revenue was $227.5 million USD, up 28% quarter-on-quarter and 14.6% year-on-year, supported by AI servers and EV demand in China [14][15] - SEMI's adjusted gross margin was 41.3%, lower than normal due to a higher contribution from wire bonders and lower TCB revenue [13] Market Data and Key Metrics Changes - The company noted strong demand in China driven by EVs and high factory utilization across all sectors [3] - The group closed the quarter with a backlog of $867.7 million USD, indicating strong future demand [10] Company Strategy and Development Direction - The company aims to maintain its leadership in TCB technology and expects the total addressable market for TCB to exceed $1 billion by 2027, driven by AI infrastructure investments [17] - The strategic restructuring, including the liquidation of the Sun Churn AEC plan, is expected to enhance cost competitiveness and operational agility [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for TCB demand and noted that the timing of key customers' technology roadmaps will influence order volumes [25][30] - The company acknowledged uncertainties in the automotive and industrial markets but remains optimistic about mainstream demand, particularly from China [17][49] Other Important Information - The company experienced an isolated booking cancellation in Q3 for panel deposition tools, which was a one-off occurrence [9][10] - The group achieved a book-to-bill ratio of 1.04 for the quarter, maintaining a ratio above one since Q1 2025 [10] Q&A Session Summary Question: HBM4 Transition and Market Share - Management confirmed they are leading the transition to HBM4 and have secured orders from two major HBM players, indicating a strong market position [22][23] Question: Pause in Advanced Packaging and TCB - Management clarified that the observed pause in AP and TCB was driven by the timing of key customers' technology roadmaps, with expectations for growth in Q4 [24][25] Question: OpEx and AEC Liquidation Impact - Management indicated that the liquidation of AEC will primarily benefit COGS rather than OpEx, and OpEx is expected to remain similar to prior years due to ongoing R&D investments [35][36] Question: TCB Fluxless Application Timeline - Management anticipates a significant ramp-up in fluxless TCB applications for logic in 2026, with ongoing progress in the technology [37][39] Question: Customer Concentration and Future Opportunities - Management noted that TCB customer concentration has broadened beyond the top three memory makers, engaging with various AI customers globally [64][65] Question: Margin Outlook for SMT Solutions - Management explained that current SMT margins are influenced by market composition, with expectations for sustained low 30% margins unless market conditions change [69] Question: Total Addressable Market for TCB - Management projected that the total addressable market for TCB will be larger for HBM than for logic over time, with aspirations for a 35% to 40% market share [70][72]

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 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 [5] - 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% [5][17] - The adjusted non-IFRS gross profit margin improved from 41.6% in 2024 to 47% in 2025 [17] 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% [6][7] - WuXi TIDES revenue surged 121.1% year-over-year to RMB 7.84 billion, with a backlog growth of 17.1% [8] - WuXi Testing revenue remained flat at RMB 4.17 billion, while lab testing services revenue grew 7.2% year-over-year [11][12] 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 China remained relatively flat [6] - The company's backlog for continuing operations reached a record RMB 59.88 billion, growing 41.2% year-over-year [5][6] Company Strategy and Development Direction - The company plans to focus on its core CRDMO business model and accelerate global expansion, capacity construction, and capability development [21][23] - 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 [21][22] Management's 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% to 18% [23][24] - The company anticipates total revenue for 2025 to be between RMB 43.5 billion and RMB 44.0 billion, up from previous guidance [24] 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 company's net profit in 2024 [25] - The company is actively advancing global capacity expansion, with CapEx payments reaching RMB 3.57 billion in the first three quarters [19] Q&A Session Summary Question: What has been driving the backlog growth, particularly in the small molecule part? - The backlog growth is mainly driven by contributions from small molecule DNM, especially from late-stage clinical and commercial projects [30] Question: What has been driving the high gross margin in the third quarter? - The high margin is attributed to continuous optimization of the manufacturing process and an increase in late-phase and commercial projects, improving utilization efficiency [34] Question: How do U.S. customers view the new BioSecure bill? - Customers have not shown a significant change in demand patterns, and the company continues to meet service demands effectively [40] Question: Does the raised guidance for the full year include the clinical research services business? - The guidance for continuing operations has excluded the clinical research services business, which will be reclassified as discontinued operations [45] Question: What is the outlook for early-stage demand? - There has been a rise in early-stage demand, particularly from U.S. customers, driven by the company's differentiated capabilities [47] Question: What are the key drivers in the small molecule CDMO business? - The small molecule pipeline includes multiple potential big projects, including GLP-1 and other therapeutic areas [60]

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]