- Revenue Reached RMB9,259 Million in the Second Quarter, Excluding COVID-19 Commercial Projects, Up 0.3% Year-over-Year
- Revenue Reached RMB17,241 Million for the First Half, Excluding COVID-19 Commercial Projects, Down 0.7% Year-over-Year
- Net Profit Attributable to the Owners of the Company Reached RMB4,240 Million, and Diluted Earnings per Share (EPS) of RMB1.45 for the First Half
- Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company Reached RMB4,372 Million, and Adjusted Non-IFRS Diluted EPS of RMB1.50[1] for the First Half
- Excluding COVID-19 commercial projects, Operating Cash Flow Up 48.3%/RMB1.50 billion Year-over-Year for the First Half
- For the first half of 2024, revenue reached RMB17,241 million, excluding COVID-19 commercial projects, revenue down 0.7% year-over-year.
- Adjusted non-IFRS gross profit reached RMB6,865 million. Adjusted non-IFRS gross profit margin was 39.8%.
- Net profit attributable to the owners of the Company was RMB4,240 million; diluted EPS was RMB1.45. Adjusted non-IFRS net profit attributable to the owners of the Company was RMB4,372 million; adjusted diluted non-IFRS EPS was RMB1.50.
- Excluding COVID-19 commercial projects, operating cash flow grew 48.3%/RMB1.50 billion year-over-year for the first half of 2024.
- In the first half of 2024, we added over 500 new customers in addition to maintaining the existing base of over 6,000 active customers. Demand from customers across regions continued to grow.
- As of June 30, 2024, backlog achieved RMB43.10 billion, growing 33.2% year-over-year excluding COVID-19 commercial projects.
- During the Reporting Period, revenue from the top 20 global pharmaceutical companies was RMB6.59 billion, growing 11.9% year-over-year excluding COVID-19 commercial projects.
- The sustained and steady business growth is attributed to our unique fully integrated Contract Research, Development and Manufacturing Organization (CRDMO) platform. WuXi Chemistry's small molecule D&M pipeline has maintained rapid growth, with a total of 644 new molecules added in the Reporting Period. As of June 30, 2024, our small molecule D&M pipeline reached 3,319 molecules, among which 14 commercial and phase III projects were added during the Reporting Period.
- In January 2024, total reactor volume of Solid Phase Peptide Synthesizer increased to 32,000L. In May 2024, we announced the groundbreaking of the new R&D and manufacturing site in Singapore.
- Our unique integrated CRDMO business model continues to meet customer demand. The Company keeps investing in D&M capacity, and expects D&M capex to increase more than 50% year-over-year in 2025.
- As an enabler of innovation and a trusted partner and contributor to the global pharmaceutical and life sciences industry, the Company actively promotes sustainability and enhances our global ESG leadership. The Company joined the United Nations Global Compact (UNGC) in 2024, and was named to FTSE4Good Index consecutively in 2023 and 2024. Our outstanding ESG performance has also been widely acknowledged by major global ESG rating agencies, including MSCI, CDP, EcoVadis, S&P and Sustainalytics.
| [1] In the first half year of 2023 and 2024, WuXi AppTec had a fully-diluted weighted average share count of 2,949,311,622 and 2,913,355,532 ordinary shares, respectively. |
Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "Despite external challenges, both our revenue and profit in the second quarter of 2024 steadily improved quarter-over-quarter as expected. We achieved backlog of RMB 43.10 billion, growing 33.2% year-over-year excluding COVID-19 commercial projects."
"The Company's performance in the first half of 2024 again demonstrated that WuXi AppTec's unique integrated CRDMO business model can effectively meet the growing demand of customers worldwide. It enables the Company to closely follow scientific innovations, develop distinct industry insights, instantly seize opportunities in new molecules as they rise, and continue to drive solid business growth. We aim to deliver revenue of RMB 38.3-40.5 billion and free cash flow of RMB 4-5 billion in 2024, while adjusted non-IFRS NPM is expected to remain at a similar level as last year. Although the recently proposed U.S. legislation may create short-term uncertainty for the Company, our customers and the global pharmaceutical and life sciences industry, WuXi AppTec remains steadfast in 'doing the right thing and doing it right' and committed to continuously enhancing our capabilities and capacity as we support the industry and our customers to bring groundbreaking therapies to patients around the world."
Business Performance by Segments
- WuXi Chemistry: CRDMO Business Model Drives Continuous Growth
- Despite external challenges, H1 revenue of WuXi Chemistry reached RMB12.21 billion, growing 2.1% year-over-year excluding COVID-19 commercial projects. H1 adjusted non-IFRS gross profit margin was 43.8%. With the continued business growth in the second half, full-year gross profit margin is expected to keep flat as last year.
- Small molecule drug discovery services ("R") continues to generate downstream opportunities. In the past 12 months, we successfully synthesized and delivered more than 450,000 new compounds to customers, and resulted in 7% year-over-year growth. Through our "follow-the-customer" and "follow-the-molecule" strategies, we established trusted partnerships with our customers globally, supporting the sustainable growth of our CRDMO business. The number of molecules converted from R to D&M continued to grow.
- Small molecule development and manufacturing (D&M) services remains strong.
i. H1 revenue of small molecule D&M services reached RMB7.39 billion. Excluding COVID-19 commercial projects, H1 revenue was down 2.7% year-over-year on top of the strong base of over 50% year-over-year growth in the first half of 2023, and full-year revenue is expected to maintain positive growth.
ii. Small molecule CDMO pipeline continued to expand. In the first half, 644 new molecules were added to the small molecule D&M pipeline. As of June 30, 2024, our small molecule D&M pipeline reached 3,319 molecules, including 67 commercial projects, 74 in phase III, 353 in phase II and 2,825 in phase I and pre-clinical stages, among which 14 commercial and phase III projects were added during the Reporting Period.
iii. In May 2024, we announced the groundbreaking of the new R&D and manufacturing site in Singapore.
- Specifically, TIDES business (mainly oligo and peptides) sustains rapid growth.
i. H1 revenue of TIDES grew strongly by 57.2% year-over-year to RMB2.08 billion. As of June, 30, 2024, TIDES backlog grew 147% year-over-year.
ii. The number of TIDES D&M customers increased 25% year-over-year to 151, and the number of TIDES molecules increased 39% year-over-year to 288.
iii. In January 2024, the total reactor volume of solid phase peptide synthesizers increased to 32,000L.
- WuXi Testing: Drug Safety Evaluation Service & Site Management Organization (SMO) Maintain Leading Positions
- H1 revenue of WuXi Testing reached RMB3.02 billion. Adjusted non-IFRS gross profit margin was 35.9%.
- H1 revenue of lab testing services was down 5.4% year-over-year to RMB2.12 billion. Among which, revenue from drug safety evaluation services was down 6.3% year-over-year due to market impact, while we maintained an industry leading position in the Asia-Pacific region.
- In the first half, the Qidong and Chengdu facilities both received the National Medical Products Administration (NMPA) and Organization for Economic Co-operation and Development (OECD) GLP qualifications. The Suzhou facility was reviewed for the first time by the Japan Pharmaceuticals and Medical Devices Agency (PMDA) for on-site audit and successfully passed.
- New modality business continued to develop, while new vaccine capability continued to improve, and market share of nucleic acids, conjugates, and mRNA further expanded.
- H1 revenue of clinical CRO & SMO grew 5.8% year-over-year to RMB0.89 billion. Among which, SMO revenue grew 20.4% year-over-year, maintaining industry leading position in China. In the Reporting Period, SMO supported 31 new drug approvals for customers, and Clinical CRO enabled our customers to obtain 14 IND approvals.
- SMO business continued steady growth, maintaining significant advantages in multiple therapeutic areas (cardiovascular disease, ophthalmology, rheumatology, central nervous system, endocrinology, medical aesthetics and rare tumors, etc.).
- WuXi Biology: New Modality Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities
- H1 revenue of WuXi Biology reached RMB1.17 billion. Adjusted non-IFRS gross profit margin was 37.2%.
- The Company focused on improving capabilities related to new modalities. In the Reporting Period, revenue from new modalities grew 8.1% year-over-year, contributing 29.0% of WuXi Biology revenue.
- Number of customers and projects served by the nucleic acid platform continued to increase. Cumulatively, the Company provided services to 260+ customers, and successfully delivered 1,200+ projects since 2021.
- The Company proactively built capabilities to collaboratively develop membrane proteins and peptides, leading to remarkable increase in business volume of related protein production, screening and subsequent validation services.
- The Company further integrated resources of the in vivo pharmacology platform, and continued to improve platform capabilities and efficiency. The Company also fully leveraged the advantage of the one-stop service platform with in vitro & in vivo synergy to further gain market share in metabolic, cardiovascular and neurological areas, and the number of customers served grew 30%+ year-over-year.
- WuXi Biology continued to generate downstream opportunities and contributed over 20% of the Company's new customers.
- WuXi ATU: Commercial and Existing Clinical Stage Projects Continue to Advance; Revenue and Profit below Expectation due to Proposed U.S. Legislation
- H1 revenue of WuXi ATU reached RMB0.57 billion. Adjusted non-IFRS gross profit margin was (27.5)%. Primarily due to: 1) the completion of high-margin projects in 2023; commercial projects are still in early stage of ramping up; 2) certain projects were delayed, or cancelled due to customers' pipeline prioritization or funding issue; as well as insufficient new business wins due to the proposed U.S. legislation.
- The Company continues to improve our CTDMO integrated enabling platform. As of June 30, 2024, we provided development, testing and manufacturing services for 64 projects, including 2 commercial projects, 5 Phase III projects (2 projects in BLA preparation stage), 8 Phase II projects and 49 pre-clinical and Phase I projects, among which, the world's first innovative TIL-based therapy was approved by the U.S. Food and Drug Administration (FDA) in February 2024.
- We are preparing for BLA filing to manufacture the lentiviral vector (LVV) used in a commercial CAR-T product. We completed process performance qualification (PPQ), started post-PPQ manufacturing, and expect to file pre-approval submission (PAS) to FDA in the second half of 2024. Moreover, we expect to complete PPQ in the second half of 2024 and file PAS to FDA in the first half of 2025 for a blockbuster commercial CAR-T product.
All financial information disclosed in this press release is prepared based on International Financial Reporting Standards (IFRS), in currency of RMB.
The 2024 Interim Report of the Company has not been audited.
Second Quarter 2024 Results by Segments
Unit: RMB million
| Segment | Revenue | Change | Adjusted non-IFRS Gross Profit | Change | Adjusted non- IFRS Gross Profit Margin |
| WuXi Chemistry | 6,647.24 | (5.5) % | 2,936.36 | (8.7) % | 44.2 % |
| WuXi Testing | 1,527.75 | (6.7) % | 551.98 | (13.8) % | 36.1 % |
| WuXi Biology | 608.10 | (7.3) % | 218.53 | (19.5) % | 35.9 % |
| WuXi ATU | 294.69 | (24.3) % | (65.94) | Note 1 | (22.4) % |
| WuXi DDSU | 177.10 | 0.6 % | 132.59 | 110.2 % | 74.9 % |
| Others | 4.11 | (71.1) % | 1.91 | (32.7) % | 46.3 % |
| Total | 9,258.98 | (6.5) % | 3,775.42 | (9.6) % | 40.8 % |
| Notes: 1. Adjusted non-IFRS gross profit of WuXi ATU was RMB(65.94) million in Q2 2024, compared to RMB(16.34) million in Q2 2023, a decline of RMB49.59 million. | |||||
| 2. Any sum of the data above that is inconsistent with the total is due to rounding. | |||||
Unit: RMB million
| Segment | Revenue | Change | Adjusted non-IFRS Gross Profit | Change | Adjusted non- IFRS Gross Profit Margin |
| WuXi Chemistry | 12,209.87 | (9.3) % | 5,345.41 | (12.4) % | 43.8 % |
| WuXi Testing | 3,018.36 | (2.4) % | 1,083.08 | (7.3) % | 35.9 % |
| WuXi Biology | 1,168.91 | (5.2) % | 434.37 | (15.0) % | 37.2 % |
| WuXi ATU | 574.95 | (19.4) % | (157.90) | Note 1 | (27.5) % |
| WuXi DDSU | 257.18 | (24.8) % | 154.15 | 49.7 % | 59.9 % |
| Others | 11.66 | (53.1) % | 6.04 | (35.7) % | 51.9 % |
| Total | 17,240.92 | (8.6) % | 6,865.16 | (12.6) % | 39.8 % |
| Notes: 1. Adjusted non-IFRS gross profit of WuXi ATU was RMB(157.90) million in H1 2024, compared to RMB(40.36) million in H1 2023, a decline of RMB117.54 million. | |||||
| 2. Any sum of the data above that is inconsistent with the total is due to rounding. | |||||
| Consolidated Statement of Profit or Loss[2] - Prepared under IFRS | |||||||||
| RMB Million | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Revenue | 9,259.0 | 9,907.5 | 17,240.9 | 18,871.3 | |||||
| Cost of sales | (5,563.8) | (5,877.5) | (10,540.0) | (11,315.6) | |||||
| Gross profit | 3,695.1 | 4,030.0 | 6,700.9 | 7,555.7 | |||||
| Other income | 269.0 | 243.8 | 511.0 | 439.8 | |||||
| Other gains and losses | 15.5 | 863.4 | 208.4 | 1,061.2 | |||||
| Impairment losses under expected credit losses ("ECL") model, net of reversal | (62.4) | (95.4) | (82.1) | (101.7) | |||||
| Impairment losses of non-financial assets | - | (42.9) | - | (42.9) | |||||
| Selling and marketing expenses | (178.4) | (177.6) | (357.5) | (353.5) | |||||
| Administrative expenses | (667.0) | (657.1) | (1,277.5) | (1,326.5) | |||||
| R&D expenses | (329.9) | (309.7) | (636.3) | (667.0) | |||||
| Operating Profit | 2,741.9 | 3,854.5 | 5,066.8 | 6,565.1 | |||||
| Share of results of associates | 81.9 | (30.7) | 115.8 | (76.5) | |||||
| Share of results of joint ventures | (4.4) | (0.6) | (4.2) | 7.7 | |||||
| Finance costs | (67.3) | (36.9) | (128.9) | (101.1) | |||||
| Profit before tax | 2,752.2 | 3,786.3 | 5,049.6 | 6,395.2 | |||||
| Income tax expense | (430.2) | (615.2) | (768.7) | (1,038.3) | |||||
| Profit for the period | 2,322.0 | 3,171.1 | 4,280.8 | 5,356.9 | |||||
| Profit for the period attributable to: | |||||||||
| Owners of the Company | 2,297.6 | 3,145.0 | 4,239.8 | 5,313.1 | |||||
| Non-controlling interests | 24.4 | 26.1 | 41.0 | 43.8 | |||||
| 2,322.0 | 3,171.1 | 4,280.8 | 5,356.9 | ||||||
| [2] If the sum of the data below is inconsistent with the total, it is caused by rounding | |||||||||
| Consolidated Statement of Profit or Loss[3] (continued) - Prepared under IFRS | |||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| Weighted average number of ordinary shares for calculating EPS (express in shares) | |||||||||
| - Basic | 2,895,745,826 | 2,940,013,234 | 2,907,737,554 | 2,936,843,517 | |||||
| - Diluted | 2,899,828,193 | 2,948,738,581 | 2,913,355,532 | 2,949,311,622 | |||||
| Earnings per share (expressed in RMB per Share) | |||||||||
| - Basic | 0.79 | 1.07 | 1.46 | 1.81 | |||||
| - Diluted | 0.79 | 1.07 | 1.45 | 1.79 | |||||
| [3] If the sum of the data below is inconsistent with the total, it is caused by rounding | |||||||||
| Consolidated Statement of Financial Position[4] - Prepared under IFRS | |||||||||
| RMB Million | June 30, | December 31, | |||||||
| 2024 | 2023 | ||||||||
| Non-current Assets | |||||||||
| Property, plant and equipment | 26,033.9 | 25,844.4 | |||||||
| Right-of-use assets | 2,358.1 | 2,348.3 |
| ||||||