WuXi Biologics Reports Solid 2023 Interim Results

Rhea-AI Summary

WuXi Biologics reports solid business performance with sustained growth momentum and strong backlog

Positive

• Revenue increased by 17.8% YoY to RMB8,492.0 million
• Non-COVID revenue achieved 59.7% YoY growth
• Late-phase and commercial manufacturing revenue grew by 130.3% YoY
• Total backlog amounted to US$20,108 million

Negative

• None.

Revenue Increased by 17.8% Y-o-Y to RMB8,492.0 Million

Adjusted Net Profit Rose by 0.4% to RMB2,925.6 Million

Non-COVID Revenue Achieved 59.7% Y-o-Y Growth, Strong Momentum Continued

Non-COVID Late-phase And Commercial Manufacturing Revenue Grew by 130.3% Y-o-Y

"R" in CRDMO Accelerated to Extend Partnerships with Pharma Clients, Milestone Revenue Approximated US$60 Million

Positive Free Cash Flow to Support Sustainable Growth

Total Backlog Amounted to US$20,108 Million

*        *        *

CRDMO Business Model Led Sustainable Long-Term Growth

"Follow and Win the Molecule" Strategies Delivered Solid Revenue Increases

621 Total Integrated Projects, Including 46 New Additions

44 Phase III Projects & 22 Commercial Manufacturing (CMO) Projects with Potential for Accelerating Growth

"Win-the-Molecule" Strategy Contributed 11 External Projects with Upside Potential

Late-phase & Commercial Manufacturing Revenue Increased to RMB3,603.3 Million, Accounting for 42.4% of Total Revenue

Global Presence Enhanced and Talent Pool Expanded to Support Business Growth

North American and European Markets Maintained Strong Growth

Premier Quality System with 30 Successful Global Regulatory Inspections

WBS (WuXi Biologics Business System) Deployed to Improve Efficiencies

Sufficient Capacity to Start Any Project within 4 Weeks

HONG KONG, Aug. 23, 2023 /PRNewswire/ -- WuXi Biologics (Cayman) Inc. ("WuXi Biologics" or "the Group", stock code: 2269.HK), a leading global Contract Research, Development and Manufacturing Organization (CRDMO) service company offering end-to-end solutions for biologics discovery, development and manufacturing, is pleased to announce its unaudited interim results for the first half of 2023 ("Reporting Period").

2023 Interim Financial Highlights

• Revenue: The Group's revenue increased to RMB8,492.0 million with an increase of 17.8% y-o-y. The increase was mainly attributable to: (i) the successful execution of the Group's "Follow and Win the Molecule" strategies, coupled with the leading technology platform, best-in-industry timeline and excellent execution track record, contributing to the growth of the Group's revenue; (ii) enlarged spectrum of services offered to the biologics industry, fast growing technology platforms including ADC and bispecific antibodies, contributing to the Group's revenue stream; (iii) growth of license revenue generated from the Group's various leading-edge technologies; and (iv) the utilization of existing and newly expanded capacities, including ramp-up of overseas manufacturing sites, while partially offset by the decline in COVID-related revenue.
• Gross Profit and Gross Profit Margin: The Group's gross profit increased by 4.3% to RMB3,560.6 million, with a gross profit margin of 41.9%. The decrease of gross profit margin was mainly due to (i) the expected ramp-up impact of new manufacturing facilities, especially those in overseas entities; (ii) lower number of new projects due to biotech funding slowdown in China; (iii) required catch-up maintenance shutdown of current facilities, while partially offset by (iv) efficiency achieved from WBS and other continuous improvement activities.
• Net Profit & Net Profit Attributable to Owners of the Company: Net profit and net profit attributable to owners of the Company for the Reporting Period amounted to RMB2,337.9 million and RMB2,266.7 million respectively, representing a 10.8% and 10.6% decrease compared to the same period last year. The decrease was mainly due to: (i) a decrease in gross profit margin; (ii) increases in selling and marketing expenses, administration expenses, and research and development expenses; and (iii) fair value losses on investments due to the capital market volatility.
• Adjusted Net Profit: Adjusted net profit for the period increased by 0.4% y-o-y to RMB2,925.6 million. Margin of adjusted net profit was 34.5%.
• Diluted earnings per share (EPS): Diluted EPS and adjusted diluted EPS were RMB0.52 and RMB0.65, respectively.
• Free cash flow continued to be positive in the first half of 2023, providing a solid financial foundation to support the Group's ongoing capacity expansion and globalization.

2023 Interim Business Highlights

• Despite a more dynamic macroenvironment, strong business growth momentum continued thanks to the Group's unique CRDMO business model and the successful execution of its "Follow and Win the Molecule" strategies.
• The total number of integrated projects reached a new record of 621 with 46 new integrated projects added to the pipeline. 44 late-phase projects and 22 commercial manufacturing projects established a solid foundation for future revenue streams.
• The "Win-the-Molecule" strategy continued to bring additional momentum to pipeline expansion by contributing 11 external projects, including 6 late-phase and commercial manufacturing projects with contract value exceeding US$1 billion, which will boost near-term revenue and fuel long-term growth.
• Total backlog and service backlog reached US$20,108 million and US$13,562 million as of June 30, 2023, providing visibility for sustainable growth in both the short- and long-term.
• The Group and GSK entered into a license agreement for multiple novel Bi- & Multi-specific T Cell Engagers, a strong testament to the Group's research capabilities - the 'R' in the Group's CRDMO business model.
• The Group is well-positioned to continue its stable growth trajectory, supported by its robust non-COVID pipeline. As of June 30, 2023, the number of non-COVID-19 projects grew to almost 580 with a 59.7% y-o-y revenue increase, underpinning the Group's long-term growth outlook.
• Early-phase revenue grew 51.8% y-o-y to RMB1,949.7 million thanks to the recovery of clinical activities post COVID-19, indicating potential acceleration of late-phase and commercial manufacturing projects.
• Late-phase and commercial manufacturing revenue increased to RMB3,603.3 million, accounting for 42.4% of total revenue in the first half of 2023, as a result of the accelerated momentum of the Group's late-stage and commercial manufacturing businesses. Excluding COVID-19 projects, the late-phase and commercial manufacturing revenue growth exceeded 130%, demonstrating the Group's global leadership position as a premier CMO.
• Excluding COVID-19 projects, revenue generated from North American and European markets grew strongly by 40.6% and 238.9% y-o-y respectively, due to sustained business momentum and improved global outreach. Over 60% of the new projects were added from the North America market in the first half of 2023, reflecting continued trust from the customers.
• The Group continued to enhance its comprehensive technologies to optimize the range of services offered to the global biologics industry. As of June 30, 2023, the Group had accumulated 105 bispecific projects including 42 WuXiBody^® projects with different formats, 110 ADC projects and 21 vaccine projects on its integrated platforms. These advanced technology platforms serve as the foundational pillars of the Group's CRDMO business model and will foster the Group's sustained growth.
• The Group proposed to spin off and separately list the shares of WuXi XDC Cayman Inc., a subsidiary of the Group, on the Main Board of the Hong Kong Stock Exchange. This listing will allow WuXi XDC to serve as an independent platform to fuel and realize its growth potential, while permitting the Group to continue to focus on its global CRDMO business capabilities, enabling faster, innovative development and manufacturing of biologics for partners and benefiting patients worldwide.
• To meet the growing needs of global customers and reinforce the Group's "Global Dual Sourcing" strategy, the Group planned to increase its capacity for drug substance (DS) and drug product (DP) in Germany. The Group's total planned manufacturing capacity is expected to exceed 580,000L, encompassing facilities in China, the U.S., Ireland, and Germany, as well as a fully integrated CRDMO center in Singapore.
• The Group further enlarged and diversified its customer base by providing services to 573 customers, including all top 20 pharmaceutical companies in the world. The growing customer base demonstrates the effectiveness of the Group's unique CRDMO business model, advanced technology platform, best-in-industry timeline, premier quality system and excellent execution track record.
• The Group continued to develop WuXi Biologics Business System (WBS) to improve operational efficiency, reduce cost and generate value for the benefit of clients and partners.
• The Group continues to adhere to the highest quality standards, and has completed 30 regulatory inspections conducted by the U.S. FDA, EU EMA, China NMPA and other global regulatory agencies since 2017.
• As of June 30, 2023, the Group's total staff reached 12,397, with a sizable biologics development team of 4,344 scientists. The Group's international hiring proceeded smoothly to support the business growth and capacity increase. Talent retention measures continued to be effective, with a key talent retention rate of over 98%, well above the industry average.
• The Group has incorporated Environmental, Social and Governance (ESG) as an essential part of its sustainable growth strategies. The Group's ESG performance has been widely recognized by the industry and received many prestigious awards, including being named Industry Top-rated and APAC Regional Top-rated Company by Sustainalytics; being selected for the S&P Global A List with a ranking in the Industry's Top 5%; and receiving a Leadership Award from CDP.

In the first half of 2023, the Group maintained its strong business momentum with its excellent execution capabilities, cutting-edge technology and flexible manufacturing capacity, while keeping a focus on operational excellence and digital transformation in the challenging macroenvironment. By adhering to "Follow and Win the Molecule" strategies and leveraging its unique CRDMO business model, the Group will continue to build on its position as a leading CRDMO player to capture value in the healthcare market and strive for the highest level of service to enable global partners for the benefit of patients worldwide.

Solid Business Performance Sustained Despite Macroeconomic Uncertainties

In the first half of 2023, the Group continued to navigate an uncertain macroeconomic environment and sustained strong business momentum, propelled by its unique CRDMO business model and the successful execution of its "Follow and Win the Molecule" strategies. 46 new integrated projects were added to the pipeline and the total number of integrated projects increased to 621. In addition, 44 late-phase projects and 22 commercial manufacturing projects established a solid foundation for the Group's long-term revenue streams.

On top of an exceptionally strong prior-year period, the Group successfully maintained robust growth momentum in its non-COVID business. During the Reporting Period, the Group's non-COVID revenue saw an impressive growth of 59.7% y-o-y, and the number of non-COVID-19 projects grew to nearly 580, the largest pipeline in the industry which will continue to boost the Group's growth in 2023 and beyond. In addition, early-phase revenue grew rapidly by 51.8% y-o-y thanks to the full recovery of clinical activities post COVID-19, indicating potential acceleration of late-phase and commercial manufacturing projects.

As of June 30, 2023, total backlog, service backlog and milestone backlog reached US$20,108 million, US$13,562 million and US$6,546 million respectively, clearly illustrating sustainable growth. Backlog within three years attained US$3,503 million, underpinning stable short-term growth.

Even with the strong backlog and a record number of projects, the Group is still able to start any new project within four weeks, supported by its strong capabilities and ample capacity.

Late-Phase and Commercial Manufacturing Projects Led Future Growth

Thanks to the unwavering implementation of "Follow and Win the Molecule" strategies, the Group has accelerated business momentum in late-stage and commercial manufacturing projects. By the end of the Reporting Period, the Group's late-phase and commercial manufacturing projects had increased to 44 and 22 respectively. Late-phase and commercial manufacturing revenue increased by 14.3% y-o-y to RMB3,603.3 million, accounting for 42.4% of the total revenue in the first half of 2023. Excluding COVID-19 projects, late-phase and commercial manufacturing revenue grew substantially by 130.3% y-o-y, with great potential for future growth.

During the Reporting Period, the Group's strategic partner, Amicus Therapeutics (Nasdaq: FOLD), received the European Commission's approval for Pombiliti™, a long-term enzyme replacement therapy used in combination with miglustat therapy for adults with late-onset Pompe disease. Additionally, the U.S. FDA completed the required pre-license inspection for AT-GAA of the Group's manufacturing facility in Wuxi, China. These achievements truly attest to the effectiveness of the Group's long-standing "Follow the Molecule" strategy, which turns concepts into commercialized biologics therapeutics.

After more than a decade of development and accumulation, the Group's commercial manufacturing capabilities and scale have been widely recognized by global customers. During the Reporting Period, 11 external projects, including 6 late-phase and commercial manufacturing projects, were added through the "Win-the-Molecule" strategy to boost near-term revenue. The "Win-the-Molecule" strategy has also brought over US$1 billion commercial manufacturing backlog for mAb, bispecific and biosimilar projects as of June 30, 2023. This strategy will further drive late-phase and commercial revenue growth, bring additional momentum to pipeline expansion, and secure long-term manufacturing contracts to fuel the Group's long-term growth.

Exciting Validation of New Technology Platforms and Strong Growth Driver from New Modalities

The Group has been tirelessly improving its comprehensive technology platform, incorporating cutting-edge advancements to accelerate the process of discovering, developing, and manufacturing biologics. These advanced technology platforms play a crucial role in the Group's CRDMO business model, supporting a wide range of services provided to the global biologics industry.

In January 2023, the Group entered into an exclusive license agreement with GSK for one preclinical bi-specific T cell engaging (TCE) antibody and the option of three additional bi-/multi-specific TCE antibodies to be developed using WuXi Biologics' proprietary technology platforms. The Group will receive a US$40 million upfront payment and up to US$1.46 billion in additional payments for research, development, regulatory and commercial milestones across the four TCE antibodies. The Group is also eligible to receive tiered royalties on net sales. The partnership with GSK validates the Group's potential best-in-class CD3 platform and WuXiBody^® platform, and signifies the success of the Group's research capability, the 'R' in its CRDMO business model.

In the first half of 2023, the Group experienced exciting growth with new modalities, including bispecifics, ADCs, multispecifics, fusion proteins and vaccines. These innovative modalities are expected to become the Group's next rapid-growth engines.

Drawing upon its extensive expertise in the development of antibodies and its top team of scientists, the Group had accumulated 105 bispecific projects with different formats by the end of the Reporting Period. The Group also offered its industry-leading proprietary bispecific antibody platform WuXiBody^® to enable global bispecific biologics innovation, which allows valency flexibility and permits the easy joining of almost any mAb pair to build a bispecific antibody. WuXiBody^® continued to gain worldwide recognition, with 42 out-licensed projects by the end of the Reporting Period.

Growth related to ADCs is evidenced by WuXi XDC securing 110 integrated ADC projects from customers worldwide, with 16 projects in phase II/III. As a trusted partner leading the bioconjugate development globally, WuXi XDC has a strong presence in the global ADC outsourcing services field. Also during the Reporting Period, WuXi Vaccines continued to enhance its end-to-end vaccine platform with a total of 48 projects, including 21 integrated projects.

Meanwhile, the Group has also extended its capabilities to provide full-spectrum services for next-generation biological products that are based on microbial fermentation technologies. The incorporation of the use of microbial expression systems such as E. coli and yeast into the Group's integrated technology platforms allows faster, more efficient and cost-effective production across multiple modalities, including enzymes, antibody fragments, recombinant proteins, virus-like particle (VLP), and plasmid DNA.

Digitalization Strategy to Empower Business Along the Transformation Journey

As digital technology becomes a leading trend in the industry, the Group has also incorporated digital and automation technologies into its CRDMO business. The Group has developed comprehensive ability of utilizing computer aided drug discovery (CADD) to enable lead discovery and lead optimization of biologics. With the advent of digitalization for drug discovery, the Group, taking advantage of its extensive experience in biological drug discovery and wet lab capability, applied digitalization tools to various biological drug lead discovery and lead optimization scenarios to help accelerate drug discovery process and expand the searching field of potential lead molecules.

The Proposed Spin-off and Separate Listing of WuXi XDC on the Hong Kong Stock Exchange

The Group has proposed to spin-off and separately list the shares of WuXi XDC Cayman Inc., a subsidiary of the Group, on the Main Board of the Hong Kong Stock Exchange. The proposed spin-off enables WuXi XDC to develop a unique global leading CRDMO dedicated to bioconjugates initially starting with ADCs and evolving into all bioconjugates (from ADC to XDC) and bring a more defined business focus and strategy to support the growth of the Group. This, in turn, would lead to a more organized and efficient allocation of capital and resources for the Group as a whole, and benefit the Group through continued consolidation of financials, as well as improved governance, market communication, and operational and financial transparency, thereby resulting in value creation for the Group and its shareholders.

Increased Capacities to Support "Global Dual Sourcing" Strategy

The Group continues to strengthen its "Global Dual Sourcing" strategy and increase its global capacity in response to the industry's burgeoning demand.

During the Reporting Period, the Group's manufacturing facility in Dundalk, Ireland, received the 2023 Facility of the Year Award (FOYA) in the Operations category from the International Society for Pharmaceutical Engineering (ISPE). The Ireland facility has successfully completed numerous client audits and has been actively responding to client inquiries to secure product supply since its GMP release in Q4 2022.

The Group announced that it will increase manufacturing capacity in Germany with a new DP fill line being installed at its Leverkusen site and an expected doubling of total capacity at its Wuppertal site from 12,000L to 24,000L. Together with the drug product facility in Leverkusen, the expanded DS facility in Wuppertal will further enhance the Group's clinical and commercial manufacturing capacities in Europe. This expansion will further reinforce the Group's "Global Dual Sourcing" strategy, which ensures that materials can be sourced and products can be manufactured at multiple sites within the Group's network.

The Group's Singapore CRDMO Center Project is also gaining momentum. In coordination with local authorities, land acquisition has been completed and the Group is progressing with various applications. Early design work of the center is approaching completion and the Group has entered into a strategic partnership with Pharmadule Morimatsu to provide modular facilities for two important production facilities at the Singapore site.

The total planned manufacturing capacity of the Group will exceed 580,000L, with major global presence in China, the U.S., Ireland, Germany and Singapore, providing a flexible and robust global supply chain network to fully meet the needs of the Group's customers worldwide.

Well-Established Partnerships with Both Big Pharma and Biotech

During the Reporting Period, the Group expanded its customer base by providing services to 573 customers, including all top 20 pharmaceutical companies in the world. The broader range of customers showcases the effectiveness of the Group's unique CRDMO business model, advanced technology platforms, best-in-industry timeline, premier quality system and strong track record of excellent execution. Over the years, the Group has cultivated strong relationships with major pharmaceutical companies, fostering extensive collaboration and long-term trust. In the first half of 2023, big pharmaceutical companies contributed approximately 40% of the Group's total revenue. Driven by active business development activities, the collaboration with pharmaceutical customers is expected to be further extended, especially in the commercial manufacturing field, covering both innovative biologics and biosimilars. Moreover, the Group continues to support small and medium-sized biotech companies to accelerate the development of their innovative biologics. The Group will remain steadfast in its commitment to provide value to its customers by continuously enhancing its capabilities and capacity.

Talent Pool Growth

The Group underscores the importance of workforce development, deploying a focused human resources strategy to recruit, train, and retain global talents. As of June 30, 2023, the Group's total staff reached 12,397, with a sizable biologics development team of 4,344 scientists. The Group's international hiring also proceeded well to support its enhanced global capacities and capabilities. The expanding talent pool allows the Group to sustain strong business growth momentum and meet the project delivery timelines effectively. Talent retention continued to be successful, with a key talent retention rate of over 98%, well above the industry's average.

World-Class Quality System Underpins WuXi Biologics Future Growth

The Group remains dedicated to the highest industry quality standards. With its world-class quality system, the Group has completed 30 regulatory inspections conducted by the U.S. FDA, EU EMA, China NMPA, and other global regulatory agencies since 2017, distinguishing the Group as the first and only biologics company certified by these regulatory agencies for commercial manufacturing in China. The Group's 14 GMP-certified manufacturing facilities, including its first GMP-certified manufacturing facilities in Germany and Ireland, further exhibit the Group's commitment to complying with the world's most stringent quality standards, thereby benefiting patients globally with high-quality biologics.

ESG as a Long-term Business Strategy

The Group believes that a good Environmental, Social and Governance (ESG) strategy will drive long-term success and endeavors to maintain a high ESG standard. Among its steps to address climate change, the Group has reinforced its dedication to sustainability by committing to the Science-Based Targets initiative (SBTi) in June 2023, and set a target of reducing waste intensity by 10% by 2027. The Group has also adopted solar-power systems, electric vehicles, and energy-saving initiatives across its global sites. To ensure the effective implementation of Diversity, Equity, and Inclusion (DEI) strategies, the Group established a dedicated DEI Committee in May 2023 to serve as the highest-level management body for DEI initiatives. A number of additional CSR initiatives were launched to benefit employees, partners, patients and local communities.

The Group's broad ESG efforts have been widely recognized by multiple leading ESG rating agencies and institutional investors. Among those recognitions, the Group was named an Industry Top-rated and APAC Regional Top-rated Company by Sustainalytics, ranked by S&P Global A List in the Industry Top 5%, obtained an A Rating from the MSCI ESG Index, received a "Leadership Award" from CDP, and earned a Bronze Medal from EcoVadis with recognition by top pharma companies, etc.

Management Comment

Dr. Chris Chen, CEO of WuXi Biologics, said, "I am very pleased that we sustained our strong growth momentum and delivered solid business performance in the first half of 2023, despite an uncertain macroenvironment and weak biotech funding in China. Through the successful implementation of 'Follow and Win the Molecule' strategies and by leveraging our unique CRDMO business model, 46 new projects were added to our pipeline and total integrated projects reached a new record of 621. Non-COVID business continued its robust momentum, with total non-COVID revenue increasing by 59.7% y-o-y and late-phase and commercial manufacturing non-COVID revenue growing by 130.3% y-o-y. Benefiting from enhanced global presence and rebounding biotech funding outside China, non-COVID revenue generated from the North American and European markets grew strongly by 40.6% and 238.9% y-o-y respectively. Non-COVID projects will continue to be the main driving force of our steady growth, supported by a robust non-COVID-19 pipeline. Following the success of development services, our CRDMO business model and strong research capabilities were further validated by the extended partnership with GSK for multiple BiSpecific & Multi-Specific TCE antibodies. We will continue to upgrade our technology platforms and optimize the spectrum of services offered to our customers globally. I am also impressed by the performance of our 'Win-the-Molecule' strategy, which brought us six late-phase and commercial manufacturing projects, including both potential and mature commercialized blockbusters with over US$1 billion contract value. This strategy will not only contribute to our near-term revenue increases but also support our sustainable long-term growth. In the foreseeable future, we hold firm confidence that commercial manufacturing will serve as the primary driver of the Group's growth, while our research business is also expected to continue to enable our clients to develop innovative biologics and enrich our CRDMO business model."

Dr. Chris Chen added, "Our free cash flow remained positive in the first half of 2023, allowing us to focus on our long-term strategy and support capacity increases with our own operating cash inflow. To meet global customers' growing needs and fulfill our 'Global Dual Sourcing' strategy, we made plans to increase DS and DP capacity in Germany. Our total manufacturing capacity will exceed 580,000L, with diversified operation locations in China, the U.S., Ireland, Germany and Singapore. We have also made the decision to list WuXi XDC separately on the Hong Kong Stock Exchange while retaining it as a consolidated subsidiary. We believe this listing will enable WuXi XDC to become a leading CRDMO dedicated to bioconjugates and further tap into the growing bioconjugate market. It will also create shareholder value, unlock the intrinsic value of WuXi XDC, and maximize its business growth potential, which will in turn benefit WuXi Biologics with regard to resource allocation and accelerated growth. In addition, we aspire to accelerate our digital transformation to become a digitally empowered innovative enterprise, providing faster, better and cheaper services for biologics discovery, development and manufacturing. Looking ahead to the remainder of 2023, despite headwinds and pressures caused by the complex global economy and macroenvironment, we will stick to our proven 'Follow and Win the Molecule' and 'Global Dual Sourcing' strategies, and continue to build more cutting-edge capabilities and capacity utilizing advanced, intelligent, and environmentally friendly technologies to strengthen our leading position as a premier CRDMO. We will focus on enhancing operational efficiencies and executing additional WBS projects, aiming to further elevate the speed and quality of our services, ultimately enabling our customers with more high-quality and cost-effective solutions to benefit patients worldwide."

Dr. Ge Li, Chairman of WuXi Biologics, concluded, "WuXi Biologics continued to achieve strong business growth underpinned by its unique CRDMO business model. In the future, we will continue to optimize end-to-end offerings, increase global presence and drive performance through a focus on continuous improvement and long-term growth. We are well positioned to accelerate the empowerment of global pharmaceutical companies, improve R&D efficiency, and benefit patients worldwide as a true one-stop service provider. We stay committed to bringing groundbreaking therapies to patients, thereby realizing our vision that 'every drug can be made and every disease can be treated'."

Key Financial Ratios
(For the Six Months Ended June 30)

Key Financial Ratio	1H 2023	1H 2022	Change
Revenue (In RMB million)	8,492.0	7,206.4	17.8 %
Gross Profit (In RMB million)	3,560.6	3,413.2	4.3 %
Margin (%)	41.9 %	47.4 %
Net Profit (In RMB million)	2,337.9	2,621.2	(10.8 %)
Margin (%)	27.5 %	36.4 %
Net Profit Attributable to Owners of the Company (In RMB million) Margin (%)	2,266.7 26.7%	2,535.1 35.2%	(10.6 %)
Adjusted Net Profit (In RMB million)	2,925.6	2,914.9	0.4 %
Margin (%)	34.5 %	40.4 %
EBITDA (In RMB million)	3,230.6	3,392.7	(4.8 %)
Margin (%)	38.0 %	47.1 %
Adjusted EBITDA (In RMB million)	3,818.3	3,686.4	3.6 %
Margin (%)	45.0 %	51.2 %
Adjusted Diluted EPS (In RMB)	0.65	0.65	-

About WuXi Biologics

WuXi Biologics (stock code: 2269.HK) is a leading global Contract Research, Development and Manufacturing Organization (CRDMO) offering end-to-end solutions that enable partners to discover, develop and manufacture biologics – from concept to commercialization – for the benefit of patients worldwide.

With over 12,000 skilled employees in China, the United States, Ireland, Germany and Singapore, WuXi Biologics leverages its technologies and expertise to provide customers with efficient and cost-effective biologics discovery, development and manufacturing solutions. As of June 30, 2023, WuXi Biologics is supporting 621 integrated client projects, including 22 in commercial manufacturing.

WuXi Biologics views Environmental, Social, and Governance (ESG) responsibilities as an integral component of our ethos and business strategy, and we aim to become an ESG leader in the biologics CRDMO sector. Our facilities use next-generation biomanufacturing technologies and clean-energy sources. We have also established an ESG committee led by our CEO to steer the comprehensive ESG strategy and its implementation, enhancing our commitment to sustainability.

For more information about WuXi Biologics, please visit: www.wuxibiologics.com

Forward-Looking Statements

This announcement may contain certain "forward-looking statements" that are not historical facts, but instead are predictions about future events based on our expectations 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, and our ability to protect our clients' intellectual property. Our forward-looking statements in this announcement 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.

Non-IFRS Measures  

To supplement the Group's condensed consolidated financial statements which are presented in accordance with the IFRS, the Company has provided adjusted net profit, adjusted net profit margin, adjusted EBITDA, adjusted EBITDA margin and adjusted basic and diluted earnings per share as additional financial measures, which are not required by, or presented in accordance with, the IFRS.

The Company believes that the adjusted financial measures are useful for understanding and assessing underlying business performance and operating trends, and that the Company's management and investors may benefit from referring to these adjusted financial measures in assessing the Group's financial performance by eliminating the impact of certain unusual, non-recurring, non-cash and/or non-operating items that the Group does not consider indicative of the performance of the Group's core business. These non-IFRS financial measures, as the management of the Group believes, is widely accepted and adopted in the industry in which the Group is operating in. However, the presentation of these 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 the IFRS. Shareholders of the Company and potential investors should not view the adjusted results on a stand-alone basis or as a substitute for results under IFRS. And these non-IFRS financial measures may not be comparable to similarly-titled measures represented by other companies.

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