WuXi AppTec (603259) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 21% year-over-year to RMB 9.65 billion, with adjusted non-IFRS net profit up 40% to RMB 2.68 billion and net profit attributable to owners rising 89% to RMB 3.67 billion, driven by strong Chemistry and TIDES segments and investment gains.

• Backlog for continuing operations reached RMB 52.33 billion, up 47.1% year-over-year, supporting future growth.

• U.S. and Europe revenues grew 28.4% and 26.2% year-over-year, while China revenue declined slightly.

• Revenue streams remain diversified, with 66% from the US, 13% from Europe, 16% from China, and 5% from Japan, Korea & others.

Financial highlights

• Adjusted non-IFRS gross profit margin improved to 41.9% in Q1 2025, with adjusted non-IFRS net profit margin at 27.7%.

• Net profit attributable to owners was RMB 3.67 billion, up 89.1% year-over-year, with diluted EPS at RMB 1.28, up 93.9%.

• Operating cash flow reached RMB 3.03 billion, up 41.8% year-over-year.

• Total assets reached RMB 84.51 billion, up 5.21% from year-end 2024.

Outlook and guidance

• Maintains full-year 2025 guidance: revenue from continuing operations to grow 10%-15% year-over-year, targeting RMB 41.5-43 billion.

• Adjusted non-IFRS net profit margin expected to further improve.

• CapEx projected at RMB 7-8 billion for 2025, with free cash flow expected at RMB 4-5 billion.

• Board proposes maintaining a 30% annual cash dividend payout ratio and an additional one-time special dividend of RMB 1 billion.