Financial Data and Key Metrics Changes - Total revenue reached nearly $4.6 billion, increasing 7.2% compared to 2024, marking record revenue for the third consecutive year [4][22] - Adjusted revenue growth, excluding foreign exchange and commodity impacts, was 6.9% year-over-year, outperforming the market by approximately 320 basis points [22][25] - EBITDA grew 11.2% year-over-year, with margins expanding by 40 basis points to 10.3% [22][28] - Net profit attributable to equity holders was $102 million, or 2.2% of revenue, compared to $62 million in 2024 [22][24] - Free cash flow was $124 million in 2025, down from $166 million in 2024 [22][32] Business Line Data and Key Metrics Changes - Successfully launched 57 customer programs, with 42 being new or conquest wins, and 36 for electric vehicle platforms [5][6] - New business bookings totaled $4.9 billion, including significant steer-by-wire wins with two leading Chinese NEV OEMs [10][13] - APAC revenue reached approximately $1.5 billion, representing a 9.8% increase year-over-year [5][26] Market Data and Key Metrics Changes - North America revenue increased by 4.4% year-over-year, while APAC led with 10.2% growth [26][27] - EMEA SA revenue increased by 8.5% year-over-year, supported by program ramp-ups [26][27] - North America remains the largest region at 50% of total revenue, followed by APAC at 32% and EMEA/SA at 17% [27] Company Strategy and Development Direction - Focus on long-term profitable growth through new business wins and program launches [4][6] - Emphasis on expanding the motion-by-wire product portfolio, including steer-by-wire and electromechanical braking systems [10][20] - Strategic partnerships with OEMs aligned with industry megatrends such as electrification and autonomy [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects above-market revenue growth in 2026 of approximately 200-300 basis points, driven primarily by continued growth in APAC [34] - Anticipated margin expansion due to net performance improvements and increased volume leverage [34] - Ongoing geopolitical risks are acknowledged, with management actively managing these through engagement with customers and suppliers [34] Other Important Information - The board approved a $46 million dividend, representing a 45% payout ratio, up from 35% in 2024 [6][22] - The company opened new manufacturing facilities in Thailand and expanded existing facilities in China and India to support growth [17][18] Q&A Session Summary Question: Long-term focus on steer-by-wire or integrated solutions? - Management indicated a focus on becoming a chassis motion-by-wire supplier, with the development of electromechanical braking as a critical milestone [40][41] Question: Expectations for customer compensation related to impairments? - Management expects to recover costs related to program cancellations in 2026, with $24 million of impairments recorded in 2025 [44][46] Question: Estimated revenue growth and EBITDA margin by area for 2026? - Management anticipates revenue growth above market by 200-300 basis points, with EBITDA margins in APAC expected to maintain around 16%-17% [50][51]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $365.3 million, representing a 4.7% year-over-year growth, primarily driven by double-digit international expansion, particularly in APAC, which grew by 26.9% [5][14] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix and new import tariffs [17] - Adjusted net profit for 2025 was $31 million, up 7.9% year-on-year, with an adjusted net profit margin of 8.5%, reflecting disciplined cost management and efficiency gains [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue, essentially flat year-on-year, supported by strong demand for Alma Harmony and Alma Hybrid platforms [14][15] - Injectable revenues reached $28 million, up 185.6% year-on-year, reflecting significant diversification due to Profhilo's momentum and broader adoption by practitioners [15] Market Data and Key Metrics Changes - North America revenue was $111 million, down 19.2% year-on-year, impacted by weakened macroeconomic conditions and softer consumer demand [14] - International markets, excluding North America, grew 20.1%, led by Asia-Pacific, which rose 26.9% year-on-year, serving as the primary growth engine [14] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to adapt to evolving market demands [3][4] - Plans for 2026 include strengthening the flagship device portfolio, expanding the global energy-based device offering, and introducing additional EBD solutions in Thailand [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining operational discipline in North America [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new executive team and their ability to lead the company with a focus on execution, operational discipline, and long-term value creation [4] - The company anticipates a recovery in the U.S. market in 2026, contingent on improvements in macroeconomic conditions and interest rates [49] Other Important Information - The company completed a structured leadership transition and is committed to balancing reinvestment for sustainable growth with shareholder value retention [4][17] - R&D spending was $16.9 million in 2025, reflecting ongoing investments in clinical programs and next-generation products [16] Q&A Session Summary Question: What specific measures are being taken to cut down the sales and marketing expense ratio? - Management indicated that proactive measures were taken to drive efficiency, resulting in reductions in sales and marketing expenses while still investing in strategic projects like DAXXIFY [20][21] Question: Can you provide an update on the company's R&D pipeline and expected clinical progress? - The company plans several launches in 2026, particularly in the hair growth segment, and is also assessing additional products for future opportunities [24][25] Question: What is the sales strategy for energy-based devices in China for 2026? - The company aims to maintain its dominant position in China and leverage synergies across different business segments to drive growth [28][29] Question: What are the plans for the commercialization of DAXXIFY this year? - The company has a capacity of 100,000 units for DAXXIFY and plans to target high-value clinics initially, with positive feedback received so far [34][35] Question: What is the strategic roadmap for 2026 and key growth drivers? - The strategy focuses on creating an ecosystem to provide more value to practitioners and enhance brand strength, with a strong emphasis on energy-based devices and hair growth solutions [38][40] Question: What are the underlying reasons for the softness in the U.S. segment and the potential for recovery? - Management noted that the decline was primarily due to macroeconomic conditions, but they are optimistic about recovery in 2026 with improved economic indicators [46][49] Question: What is the progress on AI-enabled products and the impact of geopolitical issues? - The company is leveraging partnerships for AI technologies and has maintained operational capacity despite geopolitical challenges, although there are impacts on shipping costs [56][58]

Financial Data and Key Metrics Changes - In 2025, the company reported net revenue of CNY 19.4 billion, representing an 11.9% year-over-year increase [26] - Adjusted net profit for 2025 increased by 22.2% year-over-year to CNY 3.4 billion, with adjusted basic EPS at CNY 1.45, a 20.8% year-over-year increase [27] - For Q4 2025, net revenue was CNY 4.8 billion, a 14.2% year-over-year increase, and adjusted net profit rose to CNY 779.8 million, reflecting an 18.1% year-over-year growth [20][24] Business Line Data and Key Metrics Changes - The core OTA business revenue for 2025 reached CNY 16.5 billion, a 16% year-over-year increase, while accommodation reservation revenue was CNY 5.5 billion, up 16.8% year-over-year [26] - Transportation ticketing revenue for 2025 was CNY 7.9 billion, a 9.6% year-over-year increase, and other business revenue achieved CNY 3.1 billion, representing a 34.4% year-over-year increase [26] - The accommodation business saw a record high in room nights sold, with a 30% increase in average daily room nights sold during the Chinese New Year holiday [51] Market Data and Key Metrics Changes - The company noted a shift in user preferences towards high-quality hotels, resulting in a 5 percentage point year-over-year increase in the proportion of high-quality hotels sold on its platform [8] - Outbound travel demand remains resilient, with users shifting to alternative destinations amid geopolitical tensions, particularly favoring middle-haul destinations [33] - The company expects the revenue contribution from the outbound segment to increase to around 10%-15% over the next two to three years [35] Company Strategy and Development Direction - The company aims to enhance user experience and operational efficiency through technological innovation, particularly by integrating AI into its business processes [4][17] - The acquisition of Wanda Hotels & Resorts is expected to strengthen the company's brand portfolio and market presence, positioning it for sustainable growth [10][45] - The company plans to focus on expanding its asset-light hotel management business and enhancing its competitive advantages in the travel industry [13][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upward trajectory of China's travel industry, supported by government policies and sustained user demand [28] - The company is committed to improving operational efficiency and enhancing user value while expanding its outbound business [29] - Management highlighted the importance of adapting to changing consumer preferences and maintaining a disciplined approach to marketing and operational practices [54][66] Other Important Information - The company achieved an MSCI ESG rating of AAA in 2025, reflecting its leadership in ESG performance among global peers [18] - The total number of hotels in operation exceeded 3,000 by the end of December 2025, with more than 1,800 in the pipeline [13] Q&A Session Summary Question: Impact of geopolitical tensions on outbound travel - Management noted a limited impact on outbound travel due to geopolitical tensions, with users shifting to alternative destinations [32][33] Question: AI strategy and DeepTrip's contribution - Management highlighted DeepTrip's role in enhancing user experience and operational efficiency, serving about 7 million users since launch [57][59] Question: Regulatory environment and implications for the OTA sector - Management stated that they have not observed material changes affecting operations and emphasized a focus on compliance and sustainable growth [42][54] Question: Strategic focus for hotel management business - Management discussed the successful integration of Wanda Hotels & Resorts and the focus on balancing scale expansion with operational efficiency [45][46]

Financial Data and Key Metrics Changes - In 2025, the total group revenue reached RMB 457.3 billion, marking a 25% year-on-year increase and surpassing the RMB 400 billion mark for the first time [5][16] - Adjusted net profit for 2025 was RMB 39.2 billion, up 44% year-on-year, achieving a record high [5][23] - Overall gross profit margin improved to 22.3%, up 1.3% year-on-year, also a historical high [16] Business Segment Data and Key Metrics Changes - Revenue from the smartphones and IoT segment was RMB 351.2 billion, up 5.4% year-on-year, with a gross profit margin of 21.7% [17] - Smartphone revenue was RMB 186.4 billion, accounting for 40.8% of total revenue, with global shipments reaching 165 million units [17][18] - IoT revenue surpassed RMB 120 billion for the first time, reaching RMB 123.2 billion, reflecting an 18.3% year-on-year growth [7][19] - The smart EV and AI innovation business segment achieved annual revenue of RMB 106.1 billion, up over 200% year-on-year, and recorded an operating profit of RMB 0.9 billion for the first time [21][23] Market Data and Key Metrics Changes - In 2025, Xiaomi maintained a global smartphone market share of 13.3%, ranking in the top three for 22 consecutive quarters [5][18] - In Mainland China, Xiaomi's smartphone sales ranking rose to second, with premium models accounting for 27.1% of total smartphone sales, up 3.8 percentage points year-on-year [6][17] - The company achieved significant growth in overseas markets, particularly in Latin America and Southeast Asia, where shipment rankings improved to second [5] Company Strategy and Development Direction - Xiaomi plans to focus on breakthroughs in hardcore technology, particularly in AI and embodied intelligence, with R&D investment exceeding RMB 33 billion in 2025 and projected to exceed RMB 40 billion in 2026 [9][21] - The company aims to enhance its premium product offerings and expand its presence in mature international markets [6][7] - Xiaomi is committed to integrating AI into its ecosystem, with plans to invest RMB 60 billion in AI over the next three years [12][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the second half of 2025 but expressed confidence in achieving growth targets for 2026 [16][52] - The company is aware of rising memory prices impacting the smartphone segment but aims to manage costs while protecting consumer pricing [27][59] - Management emphasized the importance of maintaining market position and competitive advantages through strong supplier relationships and inventory management [33][60] Other Important Information - Xiaomi's share repurchase program totaled approximately HKD 6.3 billion in 2025, reflecting confidence in the company's long-term future [24] - The company achieved a management level B score in the CDP Climate Change and Water Security Survey, and a score of 81 in EcoVadis Gold Medal for ESG efforts [25] Q&A Session Summary Question: Concerns about rising memory prices and smartphone pricing strategy - Management acknowledged the impact of rising memory prices and indicated that while they aim to protect consumers, price hikes may be necessary if pressures continue [27][32][59] Question: Sales data for new generation vehicles - Management clarified that locked orders for new vehicles are primarily from new buyers, indicating strong demand and a positive outlook for future sales [34][36] Question: AI capabilities and commercialization - Management stated that while AI models are progressing, commercialization is still in early stages, with ongoing improvements expected [40][64] Question: Impact of Middle Eastern situation on business - Management noted that the Middle Eastern market contributes only a small percentage to overall revenue, and the situation remains controllable [55] Question: Future investment in chips and IoT pricing strategy - Management confirmed continued investment in chip development as a strategic capability, while also indicating that pricing strategies for IoT products will align with those for smartphones [69][70]

Financial Data and Key Metrics Changes - In 2025, total group revenue reached CNY 457.3 billion, a 25% year-on-year increase, marking the first time surpassing the CNY 400 billion mark [4][15] - Adjusted net profit reached CNY 39.2 billion, up 44% year-on-year, also a record high [4][21] - Overall gross profit margin was 22.3%, up 1.3% year-on-year, achieving a historical high [15] - Revenue from smartphones and IoT segment was CNY 351.2 billion, up 5.4% year-on-year, with a gross profit margin of 21.7%, up 0.5% year-on-year [16] Business Line Data and Key Metrics Changes - Smartphone revenue was CNY 186.4 billion, accounting for 40.8% of total revenue, with global shipments reaching 165 million units [16][17] - IoT revenue surpassed CNY 123.2 billion, an 18.3% year-on-year growth, with a gross profit margin of 23.1%, up 2.8% year-on-year [6][18] - The EV and AI innovation business segment reached CNY 106.1 billion in revenue, up over 200% year-on-year, with a gross profit margin of 24.3% [20] Market Data and Key Metrics Changes - In 2025, Xiaomi maintained a global smartphone market share of 13.3%, ranking in the top three for 22 consecutive quarters [4][17] - In Mainland China, Xiaomi's smartphone sales ranking rose to second, with premium models accounting for 27.1% of total smartphone sales, up 3.8 percentage points [5][16] - The company achieved record shipments in wearables and TWS earphones, ranking first and second globally, respectively [6][18] Company Strategy and Development Direction - Xiaomi aims to solidify its high-end market position and expand its premium strategy in international markets, including launching a light phone priced at EUR 1,999 [5][6] - The company plans to invest over CNY 40 billion in R&D for 2026, focusing on AI and embodied intelligence [9][12] - Xiaomi's strategy includes deep integration of AI across its product ecosystem, with significant investments in AI capabilities and robotics [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the second half of 2025 but expressed confidence in achieving growth targets for 2026 [15][50] - The company is prepared for potential impacts from rising memory prices and is focused on maintaining competitive pricing strategies [27][57] - Management emphasized the importance of premiumization in IoT and automotive segments, with expectations for continued growth despite economic pressures [45][50] Other Important Information - Xiaomi's cumulative R&D expenditure over the past five years reached CNY 105.5 billion, with plans to exceed CNY 200 billion over the next five years [21][22] - The company actively repurchased shares, demonstrating confidence in its long-term future, with share repurchases totaling approximately HKD 6.3 billion in 2025 [22][23] - Xiaomi received a management level B score in the CDP Climate Change and Water Security Survey, reflecting its commitment to sustainable development [23] Q&A Session Summary Question: Concerns about rising memory prices and their impact on smartphones - Management acknowledged the pressure from rising memory prices and indicated that while they aim to protect consumers from price hikes, adjustments may be necessary in the future [27][30][32] Question: Sales data for new generation vehicles - Management clarified that locked orders for new vehicles are a more reliable indicator of sales, with significant initial demand observed [34][35] Question: AI capabilities and commercialization - Management stated that while AI models are showing promise, commercialization is still in early stages, with ongoing improvements expected [39][63] Question: Impact of Middle Eastern situation on overseas business - Management indicated that the Middle Eastern market contributes only a small portion to overall revenue, and the situation remains controllable [53][56] Question: Pricing strategy for smartphones and vehicles - Management emphasized the importance of maintaining market position while balancing pricing strategies across different product categories [57][58]

Financial Data and Key Metrics Changes - In 2025, the company reported net revenue of CNY 19.4 billion, representing an 11.9% year-over-year increase [26] - Adjusted net profit for 2025 increased by 22.2% year-over-year to CNY 3.4 billion, with adjusted basic EPS at CNY 1.45, a 20.8% year-over-year increase [27] - For Q4 2025, net revenue was CNY 4.8 billion, a 14.2% year-over-year increase, and adjusted net profit rose to CNY 779.8 million, reflecting 18.1% year-over-year growth [20][24] Business Line Data and Key Metrics Changes - The core OTA business revenue for 2025 reached CNY 16.5 billion, a 16% year-over-year increase, while accommodation reservation revenue was CNY 5.5 billion, up 16.8% year-over-year [26] - Transportation ticketing revenue for 2025 was CNY 7.9 billion, a 9.6% year-over-year increase, and other business revenue achieved CNY 3.1 billion, representing a 34.4% year-over-year increase [26] - The accommodation business achieved a record high in room nights sold, with a 30% increase in average daily room nights sold during Q1 2026 [51] Market Data and Key Metrics Changes - The company observed a notable shift in user preferences towards high-quality hotels, resulting in a 5 percentage point year-over-year increase in the proportion of high-quality hotels sold on its platform [8] - Outbound travel demand remains resilient, with users shifting to alternative destinations due to geopolitical tensions, particularly in Japan [33] - The company expects the revenue contribution from the outbound segment to increase to around 10%-15% over the next 2-3 years [35] Company Strategy and Development Direction - The company aims to enhance user experience and operational efficiency through technological innovation, particularly by integrating AI into its business processes [4][29] - The integration of Wanda Hotels & Resorts is expected to strengthen the company's brand portfolio and market presence, contributing to sustainable growth in the hotel management segment [10][45] - The company plans to focus on expanding its asset-light hotel management business and enhancing its competitive position in the travel industry [13][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upward trajectory of China's travel industry, supported by government policies and sustained user demand [28] - The company is committed to enhancing its corporate social responsibility and fostering sustainable industry growth [6] - Management highlighted the importance of adapting to changing user preferences and maintaining a strong focus on operational efficiency and profitability [65] Other Important Information - The company achieved an MSCI ESG rating of AAA in 2025, reflecting its leadership in ESG performance among global peers [18] - The total number of hotels in operation exceeded 3,000 by the end of December 2025, with more than 1,800 in the pipeline [13] Q&A Session Summary Question: Impact of geopolitical tensions on outbound travel - Management noted a decline in Japan-bound travel volume but stated the overall impact on business was limited as outbound travel accounts for only 5%-6% of total revenue [32][33] Question: AI strategy and Deep Trip's contribution - Management highlighted that Deep Trip has served about 7 million users, enhancing user engagement and operational efficiency through personalized travel planning [57][58] Question: Regulatory environment and its implications - Management stated that they are closely monitoring regulatory developments but have not observed any material changes affecting operations [42] Question: Future growth drivers and margin trends - Management emphasized a focus on high-quality growth, operational efficiency, and maintaining stable take rates in accommodation and transportation segments [63][65]

Financial Data and Key Metrics Changes - In 2025, the company reported net revenue of CNY 19.4 billion, representing an 11.9% year-over-year increase [26] - Adjusted net profit for 2025 increased by 22.2% year-over-year to CNY 3.4 billion, with adjusted basic EPS at CNY 1.45, a 20.8% year-over-year increase [28] - For Q4 2025, net revenue reached CNY 4.8 billion, a 14.2% year-over-year increase, while adjusted net profit rose to CNY 779.8 million, reflecting an 18.1% year-over-year growth [20][25] Business Line Data and Key Metrics Changes - The core OTA revenue achieved CNY 16.5 billion in 2025, a 16% year-over-year increase, while accommodation reservation revenue was CNY 5.5 billion, up 16.8% year-over-year [27] - Transportation ticketing revenue reached CNY 7.9 billion, representing a 9.6% year-over-year increase, and other business revenue grew by 34.4% year-over-year to CNY 3.1 billion [27] - The accommodation business saw a record high in room nights sold, with a 5 percentage point year-over-year increase in the proportion of high-quality hotels sold on the platform [8][21] Market Data and Key Metrics Changes - The company noted a significant shift in user preferences towards high-quality hotels, leading to a nearly 30% growth in international room nights sold in 2025 [8] - The Chinese travel market demonstrated solid demand during the 2026 Spring Festival, with national passenger throughput reaching a record high of 8.2% year-over-year growth [48] - Outbound travel demand remained resilient despite geopolitical tensions, with users shifting to alternative destinations [33] Company Strategy and Development Direction - The company aims to solidify its leading position in the domestic market while capturing growth opportunities in the outbound travel market [3] - The integration of Wanda Hotels & Resorts is expected to enhance the company's brand portfolio and operational efficiency, positioning it for sustainable growth [4][43] - The company is committed to leveraging AI technology to optimize operational efficiency and enhance user experience [17][30] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the upward trajectory of China's travel industry, supported by government policies and sustained user demand [29] - The company plans to focus on enhancing user experience and expanding its product offerings while maintaining financial prudence [20][30] - Management highlighted the importance of adapting to changing user preferences and the ongoing integration of AI in customer service [17][35] Other Important Information - The company achieved an MSCI ESG rating of AAA in 2025, reflecting its leadership in ESG performance [18] - The total number of hotels in operation exceeded 3,000 by the end of December 2025, with more than 1,800 in the pipeline [12] Q&A Session Summary Question: Impact of geopolitical tensions on outbound travel - Management noted a decline in Japan-bound travel volume but limited overall impact on business as outbound travel accounts for only 5%-6% of total revenue [33] Question: AI strategy and partnerships - The company is integrating AI capabilities to enhance user experience and operational efficiency, with a focus on developing the Deep Trip platform for personalized travel planning [35][36] Question: Regulatory implications for the OTA sector - Management is closely monitoring regulatory developments but has not observed any material changes affecting operations [41] Question: Strategic focus for hotel management business - Post-acquisition integration of Wanda Hotels & Resorts has been successful, enhancing brand portfolio and operational efficiency [43][45]

Financial Data and Key Metrics Changes - In 2025, total group revenue reached CNY 457.3 billion, up 25% year-on-year, marking the first time surpassing CNY 400 billion [3][12] - Adjusted net profit reached CNY 39.2 billion, up 44% year-on-year, also a record high [3][19] - Overall gross profit margin was 22.3%, up 1.3% year-on-year, a historical high [12] - Revenue from smartphones and IoT segment was CNY 351.2 billion, up 5.4% year-on-year, with a gross profit margin of 21.7% [14] - Internet service revenue hit a record CNY 37.4 billion, up 9.7% year-on-year [17] Business Line Data and Key Metrics Changes - Smartphone revenue was CNY 186.4 billion, accounting for 40.8% of total revenue, with global shipments reaching 165 million units [14][15] - IoT revenue surpassed CNY 123.2 billion, up 18.3% year-on-year, with a gross profit margin of 23.1% [5][16] - The EV and AI innovation business segment reached CNY 106.1 billion, up over 200% year-on-year, with smart EV sales revenue at CNY 103.3 billion [18] Market Data and Key Metrics Changes - In 2025, Xiaomi's global smartphone market share was 13.3%, maintaining a top three position globally for 22 consecutive quarters [3][15] - In Mainland China, Xiaomi's smartphone sales ranking rose to second, with premium models accounting for 27.1% of total smartphone sales [4][14] - In overseas markets, Xiaomi's IoT products achieved significant growth, particularly in Europe where tech home appliances entered the market [5][16] Company Strategy and Development Direction - The company aims to solidify its high-end market position and expand premium sales in mature international markets [4] - Xiaomi plans to invest over CNY 40 billion in R&D for 2026, focusing on AI and embodied intelligence [7][10] - The strategy includes deep integration of AI across various product categories, enhancing user experience and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the second half of 2025 but expressed confidence in achieving growth targets for 2026 [12][44] - The company is prepared for potential impacts from rising memory prices and is focused on maintaining competitive pricing strategies [23][49] - Management emphasized the importance of innovation and product strength in navigating market challenges [57] Other Important Information - The company has committed to sustainable development, purchasing over 40 million kWh of green electricity in 2025 [20][21] - Xiaomi's ESG efforts were recognized with a B score in the CDP Climate Change and Water Security Survey [21] Q&A Session All Questions and Answers Question: Concerns about rising memory prices and their impact on smartphones - Management acknowledged the pressure from rising memory prices and indicated that while they aim to protect consumers from price hikes, adjustments may be necessary in the future [23][27][49] Question: Sales data for new generation vehicles - Management highlighted the success of the new generation vehicles, noting significant locked orders and a commitment to timely deliveries [31][32] Question: AI capabilities and commercialization - Management stated that while AI models are showing promise, commercialization is still in early stages, with ongoing improvements expected [54][56] Question: Impact of Middle Eastern situation on overseas business - Management indicated that the Middle Eastern market contributes only a small portion to overall revenue, and the situation remains controllable [48]

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] - 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% [11] - Small molecule D&M business revenue increased 11.4% year-over-year to RMB 19.92 billion [12] - TIDES revenue nearly doubled, growing 96% year-over-year to RMB 11.37 billion [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% [8] - Europe and China experienced declines mainly due to fluctuations in project delivery timing [8] Company Strategy and Development Direction - The company remains focused on enhancing its integrated CRDMO core business and improving operational efficiency to meet customer demand [23] - WuXi AppTec aims to sustain rapid business growth, expecting total revenue to reach RMB 51.3 billion - RMB 53 billion in 2026, with continuing operations revenue growing 18%-22% year-over-year [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges, including currency exchange impacts and geopolitical uncertainties [30][31] - The company is committed to maintaining a stable and resilient adjusted non-IFRS net profit margin in 2026 [24] Other Important Information - WuXi AppTec achieved MSCI AAA and CDP Climate Change A ratings in 2025, reflecting its commitment to sustainability [9] - The board proposed a cash dividend distribution plan totaling a record RMB 5.7 billion in 2026, maintaining a 30% annual cash dividend payout ratio [25] Q&A Session All Questions and Answers Question: How does management think about the impact of currency exchange? - Management acknowledged the FX movement and expressed confidence in their execution capabilities despite macroeconomic volatility [30] Question: How would you think about the impact of geopolitics and oil prices on your margins going forward? - Management noted that while there are potential risks to raw material costs, they have not seen direct impacts on operations and will monitor the situation closely [31] Question: What would be the next key modalities that could potentially be the new focus? - Management indicated that while peptide demand is high, they are also seeing growth in oligonucleotides, which could become a significant focus [32] Question: Have you sensed any change in client outsourcing strategy in the past six to 12 months? - Management stated that they are committed to improving capabilities and investing in capacities to meet customer needs, regardless of internal manufacturing trends in the pharmaceutical industry [35] Question: What is WuXi AppTec's positioning in oral small molecule GLP-1 CDMO business? - Management reported double-digit growth in the small molecule sector, with contributions from GLP-1 small molecules [46] Question: How do you see sustainability of TIDES business growth? - Management expressed confidence in sustained growth due to high demand for their largest products and a robust pipeline [54] Question: Can you give us some color on the general timeline that it takes for a new facility to be built? - Management stated that in China, a new facility can become fully operational in less than 12 months [57] Question: How is the current Middle East situation impacting the company's investment view in Saudi Arabia? - Management confirmed that their long-term strategy remains unchanged and they continue to engage with stakeholders in Saudi Arabia [60] Question: What is the company's view on relations between the U.S. and China? - Management expressed confidence that WuXi AppTec will not be included in the 1260H list and emphasized their transparent corporate governance [70]

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] - 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][20] - 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% [11] - Small molecule D&M business revenue increased 11.4% year-over-year to RMB 19.92 billion [12] - TIDES revenue almost doubled to RMB 11.37 billion in 2025, with a backlog growth of 20.2% year-over-year [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% [8] - Europe and China experienced declines mainly due to fluctuations in project delivery timing [8] Company Strategy and Development Direction - The company remains focused on enhancing core capabilities and capacity to meet customer demand, with a strong emphasis on the CRDMO business model [7][23] - WuXi AppTec aims to drive operational efficiency and resilience to navigate dynamic market conditions, with a revenue guidance of RMB 51.3 billion to RMB 53 billion for 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining rapid business growth despite macroeconomic uncertainties, with a continuing operations revenue growth expectation of 18%-22% for 2026 [28][60] - The company is closely monitoring geopolitical situations and their potential impacts on operations and costs, maintaining a mature and diversified procurement network [31][59] Other Important Information - WuXi AppTec achieved MSCI AAA and CDP Climate Change A ratings in 2025, reflecting its commitment to sustainability [9] - The board proposed a cash dividend distribution plan totaling RMB 5.7 billion in 2026, maintaining a 30% annual cash dividend payout ratio [25] Q&A Session Summary Question: Impact of currency exchange on guidance - Management acknowledged the impact of FX movements but expressed confidence in their execution capabilities and the visibility provided by the CRDMO business model [30] Question: Geopolitical impact on margins - Management noted potential risks to upstream raw material costs but emphasized their operational efficiency and procurement strategies to mitigate impacts [31] Question: Pipeline behind TIDES CapEx budget - Management highlighted the ongoing demand for peptides and the growth potential of oligonucleotides, indicating a focus on multiple modalities [32][33] Question: Client outsourcing strategy changes - Management stated that large pharma's internal manufacturing does not change their commitment to improving capabilities and providing services [35] Question: Current utilization rate of small molecule capacity - Management indicated strong demand and ongoing collaborations with leading companies, enhancing their business in the Biology and Testing sectors [37] Question: Impact of FDA's regulatory changes on drug approvals - Management expressed that any regulatory streamlining would benefit patients and potentially increase demand for drug substances [39] Question: Positioning in oral small molecule GLP-1 CDMO business - Management confirmed strong growth in the small molecule sector, particularly in GLP-1 drugs, and anticipated benefiting from high demand [41][46] Question: Revenue breakdown and geographical mix - Management noted strong growth across all regions, with expectations for continued growth in the U.S., China, and Europe [48][52] Question: Sustainability of TIDES business growth - Management expressed confidence in sustained growth driven by a robust pipeline and ongoing 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: Competitive landscape in siRNA CRO space - Management acknowledged the presence of many players but emphasized their focus on quality, speed, and cost as competitive advantages [62][64] Question: Confidence in new orders and booking assumptions - Management expressed confidence in converting backlog into revenue and maintaining strong execution capabilities [66]