WuXi AppTec (603259) H1 2025 earnings summary

Executive summary

• H1 2025 revenue from continuing operations rose 24.2% year-over-year to RMB 20.8 billion, with adjusted non-IFRS net profit up 44.4% to RMB 6.31 billion and net profit attributable to owners reaching RMB 8.56 billion, up 101.9%, including a one-time gain from the partial sale of WuXi XDC Cayman Inc.

• Backlog for continuing operations increased 37.2% year-over-year to RMB 56.69 billion, indicating robust demand and future revenue visibility.

• Revenue streams remain diversified globally, with the US contributing 69% and growing 38.4% year-over-year, while China revenue declined.

• Achieved highest "AAA" MSCI ESG rating, with additional recognitions from SBTi, EcoVadis, CDP, Sustainalytics, and FTSE4Good.

• Cash flow from operations increased 49.1% year-over-year to RMB 7.07 billion, reflecting improved profitability and working capital management.

Financial highlights

• Adjusted non-IFRS gross profit margin improved to 44.5% from 41.6% in 2024; adjusted non-IFRS net profit margin rose to 30.4% from 27%.

• Diluted EPS reached RMB 2.99, up 106.2% year-over-year; basic EPS was RMB 3.01, up 106.16%.

• Non-recurring gains, mainly from WuXi XDC Cayman Inc. share sale, totaled RMB 3.30 billion.

• Net assets attributable to shareholders reached RMB 59.91 billion, up 2.18% from year-end 2024.

• Operating cash flow for H1 2025 was RMB 7.07 billion, up 49.1% year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance raised to RMB 42.5–43.5 billion, with continuing operations revenue growth expected at 13–17%.

• CapEx forecast for 2025 maintained at RMB 7–8 billion; free cash flow guidance increased to RMB 5–6 billion.

• Management expects continued global demand for integrated drug R&D services, with focus on capacity expansion and operational efficiency.