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Despite External Challenges, WuXi AppTec Maintained Stable Operations in First Half of 2024; Revenue and Profit of the Second Quarter Both Steadily Improved QoQ as Expected, with Revenue Up 16.0% QoQ and Adjusted Non-IFRS Net Profit Up 28.5% QoQ

SHANGHAI, July 29, 2024 /PRNewswire/ — WuXi AppTec (stock code: 603259.SH / 2359.HK), a global company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical and life sciences industry, today announced its financial results for the first half ending June 30, 2024 (“Reporting Period”): 

[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.

Management Comment

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

This release provides a summary of the results and is not intended to be a comprehensive report. For additional information, please refer to the WuXi AppTec 2024 Interim Results Presentation and 2024 Interim Report disclosed on the Company’s official website, as well as the 2024 Interim Report and other relevant announcements published on the websites of the Shanghai Stock Exchange (www.sse.com.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk), and the designated media for dissemination of the relevant information. Investors are advised to exercise caution and be aware of the investment risks in trading Company shares.

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.

First-Half 2024 Results by Segments

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

Goodwill

1,841.2

1,820.9

Other intangible assets

876.6

906.7

Interests in associates

2,356.4

2,180.4

Interests in joint ventures

25.5

35.2

Deferred tax assets

489.5

366.7

Financial assets at fair value through profit or
    loss (“FVTPL”)

8,939.3

8,626.0

Other non-current assets

117.7

105.8

Biological assets

1,097.9

1,012.5

44,136.2

43,246.9

Current Assets

Inventories

3,291.6

2,886.1

Contract costs

878.3

695.6

Biological assets

1,062.0

1,154.6

Amounts due from related parties

57.7

86.7

Trade and other receivables

9,093.7

9,372.7

Contract assets

1,200.8

1,234.4

Income tax recoverable

4.9

17.5

Financial assets at FVTPL

11.0

Derivative financial instruments

414.0

Other current assets

785.8

Pledged bank deposits

1.6

1.6

Term deposits with initial term of over three
    months

4,971.0

3,761.4

Bank balances and cash

9,699.5

10,001.0

30,261.1

30,422.5

Total Assets

74,397.3

73,669.3

[4] If the sum of the data below is inconsistent with the total, it is caused by rounding

 

 

 

Consolidated Statement of Financial Position (continued) [5]– Prepared under IFRS

RMB Million

June 30,

December 31,

2024

2023

Current Liabilities

Trade and other payables

6,777.4

7,333.5

Amounts due to related parties

14.3

11.5

Derivative financial instruments

659.7

501.9

Contract liabilities

2,522.7

1,955.4

Bank borrowings

2,919.3

3,721.6

Lease liabilities

234.7

240.5

Income tax payables

520.3

991.9

13,648.4

14,756.3

Non-current Liabilities

Bank borrowings

2,892.3

687.0

Deferred tax liabilities

596.9

530.1

Deferred income

1,045.1

1,079.9

Lease liabilities

1,119.8

1,098.6

5,654.2

3,395.6

Total Liabilities

19,302.6

18,151.9

Net Assets

55,094.8

55,517.4

Capital and Reserves

Share capital 

2,911.9

2,968.8

Reserves

51,802.0

52,153.6

Equity attributable to owners of the Company

54,713.9

55,122.5

Non-controlling interests

380.8

395.0

Total Equity

55,094.8

55,517.4

[5] If the sum of the data below is inconsistent with the total, it is caused by rounding

 

 

Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company[6]

RMB Million

                Three Months Ended

                  June 30,

              Six Months Ended

             June 30,

2024

2023

2024

2023

Net profit attributable to the owners of the Company under
    IFRS

2,297.6

3,145.0

4,239.8

5,313.1

Add:

      Share-based compensation expenses

77.2

158.1

165.0

324.4

      Issuance expenses of Convertible Bonds

0.3

      Fair value gain from derivative component of Convertible
             Bonds

(40.2)

      Foreign exchange related losses/(gains)

14.6

(500.7)

29.0

(336.5)

      Amortization of acquired intangible assets from merge and
             acquisition

13.4

14.4

27.0

28.5

      Non-financial assets impairment

42.9

42.9

Non-IFRS net profit attributable to the owners of the Company

2,402.7

2,859.7

4,460.7

5,332.5

Add:

      Realized and unrealized losses/(gains) from venture capital
             investments

51.9

(107.8)

(92.7)

(230.2)

      Realized and unrealized share of losses/(gains) from joint
             ventures

4.4

0.6

4.2

(7.7)

Adjusted non-IFRS net profit attributable to the owners of the
  Company

2,459.1

2,752.6

4,372.2

5,094.7

[6] If the sum of the data below is inconsistent with the total, it is caused by rounding

 

 

About WuXi AppTec

As a global company with operations across Asia, Europe, and North America, WuXi AppTec provides a broad portfolio of R&D and manufacturing services that enable the global pharmaceutical and life sciences industry to advance discoveries and deliver groundbreaking treatments to patients. Through its unique business models, WuXi AppTec’s integrated, end-to-end services include chemistry drug CRDMO (Contract Research, Development and Manufacturing Organization), biology discovery, preclinical testing and clinical research services, advanced therapies CTDMO (Contract Testing, Development and Manufacturing Organization), helping customers improve the productivity of advancing healthcare products through cost-effective and efficient solutions. WuXi AppTec received an AA ESG rating from MSCI for the third consecutive year in 2023 and its open-access platform is enabling more than 6,000 customers from over 30 countries to improve the health of those in need – and to realize the vision that “every drug can be made and every disease can be treated.” Please visit: http://www.wuxiapptec.com

Forward-Looking Statements

This press release may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out to be incorrect. Our forward-looking statements are subject to risks relating to, among other things, the ability of our service offerings to compete effectively, our ability to meet timelines for the expansion of our service offerings, our ability to protect our customers’ intellectual property, unforeseeable international tension, competition, the impact of emergencies and other force majeure. Our forward-looking statements in this press release speak only as of the date on which they are made, and we assume no obligation to update any forward-looking statements except as required by applicable law or listing rules. Accordingly, you are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. All forward-looking statements contained herein are qualified by reference to the cautionary statements set forth in this section. All information provided in this press release is as of the date of this press release and are based on assumptions that we believe to be reasonable as of this date, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-IFRS and Adjusted Non-IFRS Financial Measures

We provide non-IFRS gross profit and non-IFRS net profit attributable to the owners of the Company, which exclude share-based compensation expenses, issuance expenses of convertible bonds, fair value gain or loss from derivative component of convertible bonds, foreign exchange-related gains or losses, amortization of acquired intangible assets from merge and acquisition, non-financial assets impairment, talent incentive and retention expenses funded by cash donation from shareholders, etc. We also provide adjusted non-IFRS net profit attributable to the owners of the Company and earnings per share, which further exclude realized and unrealized gains or losses from our venture capital investments and joint ventures. Neither is required by, or presented in accordance with IFRS.

We believe that the adjusted financial measures used in this press release are useful for understanding and assessing our core business performance and operating trends, and we believe that management and investors may benefit from referring to these adjusted financial measures in assessing our financial performance by eliminating the impact of certain unusual, non-recurring, non-cash and non-operating items that we do not consider indicative of the performance of our core business. Such adjusted non-IFRS net profit attributable to the owners of the Company, the management of the Company believes, is widely accepted and adopted in the industry the Company is operating in. However, the presentation of these adjusted non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. You should not view adjusted results on a stand-alone basis or as a substitute for results under IFRS, or as being comparable to results reported or forecasted by other companies.

 

 

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