WUXI APPTEC CO., LTD. WuXi AppTec
Third Quarterly 2023 Results
October 31, 2023
603259.SH / 2359.HK
Forward-Looking Statements
This presentation 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 presentation 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 presentation is as of the date of this presentation 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.
Non-IFRS Financial Measures
We provide non-IFRS gross profit 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 and amortization of intangible assets acquired in business combinations, non-financial assets impairment, etc. 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 of above is required by, or presented in accordance with IFRS.
We believe that the adjusted financial measures used in this presentation 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 non-IFRS financial measures, 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.
Disclaimer
All intellectual property rights and other rights pertaining to the information and materials presented in the results briefing are owned by WuXi AppTec Co., Ltd. ("WuXi AppTec" or the "Company"). Audio recording, video recording or disclosure of such materials by any means without the prior consent of WuXi AppTec is prohibited. This briefing does not intend to provide a complete statement of the relevant matters. For relevant information, please refer to the 2023 Third Quarterly Report published on the website of Hong Kong Stock Exchange (www.hkexnews.hk), Shanghai Stock Exchange (www.sse.com.cn) and media designated by the Company.
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01 Results Overview
02 Business Highlights
03 Financial Performance
04 Growth Outlook
3 Note: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or "IFRSs"). The currency is RMB. All net profit disclosed in this presentation represents net profit attributable to the owners of the Company.
1. Results Overview
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Revenue in Q3 2023 Back to over RMB 10 Billion
Revenue | Adjusted Non-IFRS Net Profit | ||||
RMB billion | +0.3% | +15.7% | RMB billion | +24.3% | |
excluding COVID-19 | 3.1 | ||||
commercial projects | |||||
10.6 | 10.7 | 2.5 |
Q3 2022Q3 2023Q3 2022Q3 2023
Net Profit | Net Profit After Deducting Non-Recurring Items | |||||
RMB billion | +0.8% | RMB billion | +23.8% | |||
2.4 | 2.9 | |||||
2.7 | 2.8 | |||||
Q3 2022 | Q3 2023 | Q3 2022 | Q3 2023 |
5 Note: The non-recurring net profit is prepared according to the requirement of information disclosure rules issued by China Securities Regulatory Commission.
Continued Solid Growth of Revenue & Profit in Q1-Q3 2023
Revenue | Adjusted Non-IFRS Net Profit | |||||
RMB billion | +4.0% | +23.4% | RMB billion | +20.6% | ||
excluding COVID-19 | ||||||
commercial projects | 8.2 | |||||
29.5 | 6.8 | |||||
28.4 | ||||||
Q1-Q3 2022Q1-Q3 2023Q1-Q3 2022Q1-Q3 2023
Net Profit | Net Profit After Deducting Non-Recurring Items | ||||
RMB billion | +9.5% | RMB billion | +23.7% | ||
8.1 | 7.7 | ||||
7.4 | 6.2 | ||||
Q1-Q3 2022 | Q1-Q3 2023 | Q1-Q3 2022 | Q1-Q3 2023 |
6 Note: The non-recurring net profit is prepared according to the requirement of information disclosure rules issued by China Securities Regulatory Commission.
Q1-Q3 2023 Business Highlights
Enable Customers to Grow Together
900+ new customers, 6,000+ active customers
Backlog maintained H1 growth momentum, among which:
TIDES backlog accelerated to grow +245%↑
Excluding COVID-19 commercial projects, revenue from
Top20 pharma continued rapid growth
Small Molecule CRDMO Pipeline
3,014 molecules, 926 newly added molecules, including 58 commercial, 61 Phase III
Adding 12 commercial & Phase III projects
Excluding COVID-19 commercial projects, D&M revenue grew
Cell & Gene Therapies CTDMO Pipeline
7 Phase III, 9 Phase II,
52 Phase I & preclinical
Advancing 4 potential commercial manufacturing projects
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Build Platform & Improve Efficiency
32 global sites & branch offices
41,148 total employees, including 37,899 scientists & technicians
Adding 55,000 m2 testing laboratories, continued to advance the design & construction of facilities around the world
Continued to improve operating efficiency. Adjusted non-IFRS GPM increased ~1pt YoY
at CER, and operating cash flow grew +33%↑. Continued to invest in new capacities & new capabilities
Development of DDSU Pipeline
2 NDA approved, 2 in NDA review, 5 Phase III， 99 Phase II & Phase I
2 new drugs approved, continued to receive royalty income of the 2 new drugs approved from customers
Our Platform & Business Model Continued to Perform Well
Strong, Loyal &
Expanding Customer Base
Revenue breakdown
Existing clients
29.12Bn,
excluding COVID-19 | +26%↑ |
commercial projects |
Newly added clients
0.43Bn
New Clients
1%
Existing Clients
99%
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Execute Long-Tail Strategy
- Increase Support to Large Pharma
Revenue breakdown
Top 20 global pharma clients
11.82Bn,
excluding COVID-19 | +43%↑ |
commercial projects |
Other clients
17.72Bn, +16%↑
Top 20 global
pharma
Other Clients 40% 60%
Increase Customer
Conversion to Sustain
Growth
Revenue breakdown
Clients using multiple services
27.27Bn,
excluding COVID-19 | +28%↑ |
commercial projects |
Clients using single
service
8%
Clients using
multiple services
92%
Diversified Revenue Streams from Customers Across Regions Ensure the Stability and Resilience of the Company's Financial Performance
China
Europe | 5.24Bn, | +5% | |
3.28Bn, +10% | |||
US | Revenue contribution: 18% | ||
Revenue contribution: 11% | |||
19.40Bn, | |||
excluding COVID-19 | +36% | ||
commercial projects |
Revenue contribution: 66%
Japan, Korea &
Others
1.62Bn, +10%
Revenue contribution: 5%
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ESG Leading Position Further Enhanced in the Global ESG Rating Systems
Consecutive "AA" ratings in 2021, | Improved to "Silver" rating in 2023 |
2022 and 2023 | |
Named to the 2022 S&P DJSI | Awarded as Industry and | Leadership level of "A-" in 2022 |
(World and Emerging Markets) | Regional Top Rated company | CDP Climate Change rating |
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WuXi AppTec Co. Ltd. published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 12:02:40 UTC.
