2022/07/26
Revenue Up 68.5% Year-Over-Year to RMB17,756 Million
Net Profit Attributable to Owners of the Company Up 73.3% Year-Over-Year to RMB4,636 Million
Diluted Earnings Per Share (EPS) Up 62.6% Year-Over-Year to RMB1.48
Adjusted Non-IFRS Net Profit Attributable to Owners of the Company Up 75.7% Year-Over-Year to RMB4,301 Million
Adjusted Non-IFRS Diluted EPS Up 73.8% Year-Over-Year to RMB1.46[1]
SHANGHAI, July 26, 2022 /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, biotech and medical device industries to advance discoveries and deliver groundbreaking treatments to patients, is pleased to announce its financial results for the first half of the year ending June 30, 2022 ("Reporting Period").
This release provides a summary of the results and is not intended to be a comprehensive report. For additional information, please refer to the 2022 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 2022 First-Half Report of the Company has not been audited.
[1] In the first half of 2021 and 2022, WuXi AppTec had a fully-diluted weighted average share count of 2,924,395,370 and 2,951,897,466 ordinary shares, respectively.
First-Half 2022 Financial Highlights
Revenue grew 68.5% year-over-year to RMB17,756 million. This is primarily attributable to the Company's continued focus on leveraging its unique Contract Research, Development and Manufacturing Organization (CRDMO) business model to achieve synergy and strong growth across our business segments:
- IFRS gross profit increased 65.5% year-over-year to RMB6,427 million. Gross profit margin was 36.2%.[2]
- Adjusted Non-IFRS gross profit increased 65.5% year-over-year to RMB6,790 million. Adjusted Non-IFRS gross margin was 38.2%.
- EBITDA increased 64.4% year-over-year to RMB6,483 million.
- Adjusted EBITDA increased 66.6% year-over-year to RMB6,077 million.
- Net profit attributable to owners of the Company increased 73.3% year-over-year to RMB4,636 million.
- Adjusted non-IFRS net profit attributable to owners of the Company increased 75.7% year-over-year to RMB4,301 million.
- Diluted EPS increased 62.6% year-over-year to RMB1.48, while adjusted diluted non-IFRS EPS increased by 73.8% year-over-year to RMB1.46.
[2] If prepared under Accounting Standard for Business Enterprises of PRC, the gross profit grew 65.2% year-over-year to RMB 6,437 million. Gross profit margin was 36.3%.
First-Half 2022 Business Highlights
- In the first half of 2022, demand for our services was strong and we grew our customer base to more than 5,850 active accounts by adding over 650 new customers. We continued to optimize cross-platform synergies to better serve our customers worldwide, strengthen our unique competitive advantage as a fully integrated CRDMO (Contract Research, Development and Manufacturing Organization) and CTDMO (Contract Testing, Development and Manufacturing Organization), and provide one-stop services for our clients from discovery to development and manufacturing. Revenue growth was demonstrated across our expanding global customer base:
- WuXi Chemistry: CRDMO integrated business model drives revenue to double
i. Our industry-leading small molecule drug discovery platform delivered more than 180,000 custom synthesized compounds to our clients in first half 2022. Through our small molecule discovery services, we enabled our customers to accelerate their research while generating opportunities for our downstream business units. As part of our “follow the customer” and “follow the molecule” strategies, we established trusted partnerships with our global customers, which supported the rapid and sustainable growth of our CRDMO business.
ii. We continued executing our “long-tail” strategy, and those customers continue to have strong demands for our discovery services in small molecules, oligonucleotides and peptides.
i. During the Reporting Period, the Company added 473 new molecules to our D&M pipeline funnel for a total of 2,010 molecules, including 43 in commercial stage, 52 in phase III, 288 in phase II and 1,627 in phase I and pre-clinical stages.
ii. D&M services for new modalities is also gaining strong momentum. During the reporting period, the number of oligonucleotide and peptide D&M clients increased 123% to 98, and the number of oligonucleotide and peptide molecules increased 63% to 142. Revenue from oligonucleotide and peptide D&M reached RMB705 million.
- WuXi Testing: strong growth in lab testing services
i. The Company provides a full range of laboratory testing services to our customers, including DMPK (drug metabolism and pharmacokinetics), toxicology, and bioanalysis for drug development testing as well as medical device testing. We leveraged our integrated WuXi AppTec Investigational New Drug (IND) program (WIND) to generate preclinical data and prepare global regulatory submissions of IND packages, expediting the IND application process for many customers worldwide. Customers signed 72 WIND service packages with us in the first half of 2022.
ii. Drug safety evaluation services achieved strong revenue growth of 53% year-over-year. We maintained our industry-leading position in Asia for drug safety evaluation services that meet global regulatory requirements.
iii. Our largely US-based medical device testing business has turned around and grew 31% year-over-year.
i. For clinical CRO, the Company provided services to 170 projects, enabling our customers to obtain 10 IND approvals.
ii. For SMO, the Company continued its rapid expansion. Our SMO maintained more than 4,600 staff in around 150 cities in China, providing services in more than 1,000 hospitals. The team size increased 16% year-over-year, demonstrating strong demand for our SMO services. In the first half of 2022, SMO supported our clients for 16 new drug approvals.
- WuXi Biology: new modalities-related biology services drive growth
- WuXi ATU: CTDMO business model drives growth
- WuXi DDSU: business evolving to focus on innovative drug discovery services
Our commitment to ESG
As an innovation enabler, a trusted partner, and a contributor to the global healthcare industry, WuXi AppTec Co., Ltd. ("WuXi AppTec", or "we") is committed to environmental protection and sustainability, and to be a good global corporate citizenship.
In the first half of 2022, WuXi AppTec was recognized as a "Top Rated" ESG company by Sustainalytics, a leading ESG research, ratings and data firm. In the same assessment, WuXi AppTec was placed in the top four percent of companies in the global pharmaceutical industry with a "Low Risk" of experiencing material financial impacts due to ESG factors.
We continuously strengthen sustainability management and technologies, and actively build green chemical technology platforms such as biocatalysis, flow chemistry and direct isolation. In the first half of 2022, our energy consumption intensity, carbon emission intensity and water use intensity reduced by 18.8%, 22.5% and 23.6%, respectively, as compared to that of 2021.
Management Comment
Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "We achieved record growth in the first half of 2022. Our revenue increased 68.5% year-over-year and our adjusted Non-IFRS net profit increased 75.7% year-over-year. WuXi AppTec's performance during the first half of 2022 underscores that our unique CRDMO and CTDMO business models continue to drive rapid growth for our company and allow us to better serve customers worldwide."
"After Shanghai experienced an Omicron outbreak in the second quarter, we effectively implemented our business continuity plan and leveraged our global capacities and comprehensive capabilities to ensure the health of our employees and continue our business operations. Since June 1st, we have resumed operations of our facilities in Shanghai, and continue to meet project delivery timelines and capture new business opportunities. We have increased our revenue growth target for year end 2022 to the range of 68-72% from 65-70% year-over-year, and we are confident to deliver strong growth in 2022 and beyond."
"We have made good progress in achieving excellent results in ESG. Looking forward, we remain committed to 'doing the right thing and doing it right.' We will continue to focus on delivering our ESG commitments and ensuring that ESG remains a priority across our business operations today and in the future."
[3] If the sum of the data below is inconsistent with the total, it is caused by rounding
[4] If the sum of the data below is inconsistent with the total, it is caused by rounding
[5] If the sum of the data below is inconsistent with the total, it is caused by rounding.
[6] If the sum of the data below is inconsistent with the total, it is caused by rounding.
[7] If the sum of the data below is inconsistent with the total, it is caused by rounding.
[8] 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 healthcare 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, cell and gene 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 in 2022 and its open-access platform is enabling more than 5,850 collaborators 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 clients’ 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, exclude the impact in revenue and cost from effective hedge accounting, share-based compensation expenses and amortization of intangible assets acquired in business combinations, and non-IFRS net profit attributable to 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 intangible assets acquired in business combinations and goodwill impairment. We also provide adjusted non-IFRS net profit attributable to 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 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.
For more information, please contact:
Mr. Kyler Lei (for investors)
IR Director
Email: kyler_lei@wuxiapptec.com
Mr. Davy Wu (for media)
PR Director
Email: davy_wu@wuxiapptec.com