WuXi AppTec Revenue and Profit Achieved Steady QoQ Growth in 2024, Meeting Full-year Guidance; Q4 Revenue and Profit Both Reached Record Highs

While continuously building capacity and capabilities, we remain committed to rewarding shareholders by maintaining an annual cash dividend payout ratio of 30% of net profit attributable to the owners of the Company (~RMB2.8 billion). In appreciation of shareholders' support for our strategic adjustments in challenging times, we propose an additional one-time special cash dividend of RMB1.0 billion and an increased interim dividend in 2025. In addition, the Company plans to repurchase RMB1.0 billion A-share when appropriate. Meanwhile, the Company will continue to invest in talent retention for long-term shared growth. The Company plans to launch the 2025 H-share Incentive Trust Plan, which will grant HKD1.5 billion H-shares upon achieving RMB42.0 billion revenue in 2025, and an additional HKD1.0 billion H-shares upon reaching RMB43.0 billion and above in revenue. H-shares under this plan will be purchased through open market at prevailing market prices (no dilution to existing shareholders).

Management Comment

Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "The Company remains steadfast in 'doing the right thing and doing it right'. In 2024, we achieved 5.2% year-over-year revenue growth (excluding COVID-19 commercial project of 2023), with all revenue, profit and free cash flow meeting the targets set in our annual guidance. Meanwhile, the backlog for Continuing Operations reached a record high of RMB49.3 billion, representing a 47.0% year-over-year growth."

"The Company continues to focus on our unique CRDMO business model, delivering efficient and exceptional services to our global customers and benefiting patients worldwide. Our CRDMO business model enables the Company to generate distinct industry insights and respond promptly to new molecule demands from customers, ensuring the Company's long-term business growth and sustainable returns to shareholders. Entering 2025, the Company will resume its growth trajectory, with Continuing Operations revenue expected to achieve a year-over-year double-digit growth of 10-15%, and the adjusted non-IFRS net profit margin expected to further improve."

"Thanks to the enduring trust and support from our global customers, the Company will continue to enhance our capabilities, capacity and operating efficiency, while retaining and attracting top talent to support our customers' growing efforts to bring groundbreaking therapies to patients. Together, we can realize our vision that 'every drug can be made and every disease can be treated'."

Business Performance by Segments

• WuXi Chemistry: CRDMO Business Model Drives Continuous Growth; 2024 Revenue Up 11.2% YoY Excluding COVID-19 Commercial Project of 2023, with TIDES Revenue Up 70.1% YoY
  • WuXi Chemistry Q4 revenue was up 13.0% year-over-year to RMB8.96 billion; 2024 revenue reached RMB29.05 billion, up 11.2% year-over-year excluding COVID-19 commercial project. With continued optimization of production process and constant improvement in efficiency, 2024 adjusted non-IFRS gross profit margin steadily improved 1.2pts year-over-year to 46.4%.
  • Small molecule drug discovery services ("R") continues to generate downstream opportunities. In 2024, we successfully synthesized and delivered more than 460,000 new compounds to customers, which resulted in 10% 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. In 2024, 366 molecules were converted from R to D.
  • Small molecule development and manufacturing (D&M) services remains strong.

    i. 2024 revenue of small molecule D&M services reached RMB17.87 billion, up 6.4% year-over-year excluding COVID-19 commercial project.

    ii. The small molecule CDMO pipeline continued to expand. In 2024, 1,187 new molecules were added to the small molecule D&M pipeline. As of December 31, 2024, our small molecule D&M pipeline reached 3,377 molecules, including 72 commercial projects, 80 in phase III, 360 in phase II and 2,865 in phase I and pre-clinical stages, with an increase of 25 projects in the commercial and phase III stages during 2024.

    iii. In 2024, Taixing API site commenced operations, and capacity at both Changzhou and Taixing sites steadily increased over the course of the year. The total reactor volume of small molecule APIs is expected to reach over 4,000kL by end of 2025.

    iv. We continued to invest in our Switzerland (Couvet) site, doubling oral dose capacity over the course of 2024. Meanwhile, we continued to build our U.S. (Middletown) site, which is expected to commence operations by the end of 2026. In May 2024, we announced the groundbreaking of Singapore R&D and manufacturing site; Phase I expects to commence operations in 2027.

  • TIDES business (oligo and peptides) sustains rapid growth.

    i. 2024 TIDES revenue grew 70.1% year-over-year to RMB5.80 billion. By end of 2024, TIDES backlog was up 103.9% year-over-year.

    ii. TIDES D&M customers grew 15% year-over-year, while the number of TIDES molecules grew 22% year-over-year.

    iii. At the end of 2024, total reactor volume of solid phase peptide synthesizers reached 41,000L, and is expected to further increase to over 100,000L by the end of 2025.

• WuXi Testing^[3]: Drug Safety Evaluation Service & Site Management Organization (SMO) Maintain Leading Positions
  • Revenue of WuXi Testing reached RMB5.67 billion. Adjusted non-IFRS gross profit margin was 33.3%.
  • 2024 revenue of lab testing services reached RMB3.86 billion, down 8.0% year-over-year due to market impact as pricing gradually reflected in revenue along with backlog conversion. Of which, drug safety evaluation services revenue was down 13.0% year-over-year, while maintaining an industry-leading position in the Asia-Pacific region.
  • In 2024, the Qidong and Chengdu facilities 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 capabilities continued to improve, and market share of nucleic acids, conjugates, and mRNA further expanded.
  • The Company is committed to actively enabling customers global licensing. WuXi AppTec has supported approximately 40% of China biotech companies that have made out-licensing deals over the past three years.
  • 2024 revenue of clinical CRO & SMO grew 2.8% year-over-year to RMB1.81 billion. Of which, SMO revenue grew 15.4% year-over-year, maintaining the industry leading position in China.
  • In 2024, Clinical CRO enabled our customers to obtain 29 IND approvals and submit for 1 NDA filing.
  • The SMO business continued steady growth, and supported 73 new drug approvals for customers in 2024. SMO supported 255 new drug approvals in total over the past decade, maintaining significant advantages in multiple areas (endocrinology, dermatology, lung cancer, cardiovascular disease, ophthalmology, rheumatology, central nervous system, medical aesthetics and rare tumors, etc.).

• WuXi Biology: Early Screening & In Vivo Pharmacology-Related Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities
  • With platform resources further integrated, WuXi Biology achieved steady quarter-over-quarter growth in 2024. Q4 revenue was up 9.3% quarter-over-quarter and up 9.2% year-over-year. Full-year revenue reached RMB2.54 billion, relatively flat year-over-year. Adjusted non-IFRS gross profit margin was 38.8%.
  • The Company fully leveraged the advantage of one-stop service platform with in vitro & in vivo synergies, 2024 revenue of the non-oncology business grew 29.9% year-over-year, led by growth in metabolic and neurological areas.
  • The Company continued to build a comprehensive and integrated screening platform, with related revenue gaining 18.7% year-over-year. The Company continued to build capabilities related to new modalities, which contributed more than 28% of WuXi Biology's total revenue in 2024.
  • The number of customers and projects served by the nucleic acid platform continued to increase. Cumulatively, the Company has provided services to more than 290 customers, and successfully delivered more than 1,400 projects since 2021.
  • WuXi Biology continued to generate downstream opportunities and contributed over 20% of the Company's new customers.

This release provides a summary of the results and does not intend to provide a complete statement relating to the Company, its securities, or any relevant matters herein that a recipient may need in order to evaluate the Company. For additional information, please refer to the WuXi AppTec 2024 Annual Results Presentation and 2024 Annual Report disclosed on the Company's official website, as well as the Company's disclosure documents and information on the Shanghai Stock Exchange, the Stock Exchange of Hong Kong Limited website. Investors are advised to exercise caution and be aware of the investment risks in trading Company shares.

Net Profit Attributable to the Owners of the Company is prepared under Accounting Standard for Business Enterprises of PRC ("People's Republic of China Financial Reporting Standards"), in currency of RMB. Besides, all other financial information disclosed in this press release is prepared based on International Financial Reporting Standards (IFRS), in currency of RMB.

The 2024 Annual Report of the Company has been audited.