SHANGHAI, July 31, 2023 /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 ending June 30, 2023 ("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 2023 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 2023 Interim Report of the Company has not been audited.
[1] In the first half year of 2022 and 2023, WuXi AppTec had a fully-diluted weighted average share count of 2,951,897,466 and 2,949,311,622ordinary shares, respectively. |
Second Quarter 2023 Financial Highlights
Revenue grew 6.7% year-over-year to RMB9,908 million, excluding COVID-19 commercial projects, revenue grew strongly by 39.5%. This is primarily attributable to the Company's continued excellent execution of our unique Contract Research, Development and Manufacturing Organization (CRDMO) business model to achieve strong synergy and continuous growth:
Unit: RMB million
Segment |
Revenue |
Change |
Adjusted non- |
Change |
Adjusted non- |
WuXi Chemistry |
7,034.42 |
2.6 % |
3,215.83 |
12.9 % |
45.7 % |
WuXi Testing |
1,638.12 |
23.6 % |
640.26 |
36.2 % |
39.1 % |
WuXi Biology |
655.64 |
17.5 % |
271.44 |
21.3 % |
41.4 % |
WuXi ATU |
389.14 |
22.9 % |
(16.34) |
Note1 |
(4.2) % |
WuXi DDSU |
176.01 |
(17.9) % |
63.09 |
5.2 % |
35.8 % |
Others |
14.21 |
31.8 % |
2.83 |
(55.8) % |
19.9 % |
Total |
9,907.54 |
6.7 % |
4,177.10 |
16.4 % |
42.2 % |
Notes: 1. Adjusted non-IFRS gross profit of WuXi ATU was RMB(16.34) million in Q2 2023, compared to RMB(20.40) million in Q2 2022, an increase of RM4.05 million. |
2. Any sum of the data above that is inconsistent with the total is due to rounding. |
[2] If prepared under Accounting Standard for Business Enterprises of PRC, the gross profit grew 19.6% year-over-year to RMB4,070 million. Gross profit margin was 41.1%. |
First-Half 2023 Financial Highlights
Revenue grew 6.3% year-over-year to RMB18,871 million, excluding COVID-19 commercial projects, revenue grew strongly by 27.9%. This is primarily attributable to the Company's continued excellent execution of our unique Contract Research, Development and Manufacturing Organization (CRDMO) business model to achieve strong synergy and continuous growth:
Unit: RMB million
Segment |
Revenue |
Change |
Adjusted non- |
Change |
Adjusted non- |
WuXi Chemistry |
13,467.20 |
3.8 % |
6,103.40 |
14.9 % |
45.3 % |
WuXi Testing |
3,091.00 |
18.7 % |
1,168.08 |
26.1 % |
37.8 % |
WuXi Biology |
1,232.64 |
13.0 % |
511.10 |
15.1 % |
41.5 % |
WuXi ATU |
713.63 |
16.0 % |
(40.36) |
Note1 |
(5.7) % |
WuXi DDSU |
341.99 |
(24.9) % |
103.00 |
(26.2) % |
30.1 % |
Others |
24.83 |
55.6 % |
9.40 |
14.6 % |
37.8 % |
Total |
18,871.29 |
6.3 % |
7,854.63 |
15.7 % |
41.6 % |
Notes: 1. Adjusted non-IFRS gross profit of WuXi ATU was RMB(40.36) million in H1 2023, compared to RMB(42.74) million in H1 2022, an increase of RMB2.39 million. |
2. Any sum of the data above that is inconsistent with the total is due to rounding. |
[3] If prepared under Accounting Standard for Business Enterprises of PRC, the gross profit grew 18.8% year-over-year to RMB7,646 million. Gross profit margin was 40.5%. |
First-Half 2023 Business Operation Highlights
Our Commitment to ESG
As an industry innovation enabler, a trusted partner and a contributor to the global healthcare industry, the Company is committed to environmental protection and sustainability, and to being a good global corporate citizenship.
Our outstanding ESG performance has been recognized by major global ESG rating agencies, including MSCI, S&P Global, Sustainalytics, CDP and EcoVadis. In June 2023, we received the fourth "Silver" medal recognition from EcoVadis for our Couvet site in Switzerland.
By the first half of 2023, our carbon emission intensity, energy consumption intensity and water use intensity reduced by 20.1%, 18.4%, and 31.6%, respectively, as compared to the baseline year 2020.
As we continue to advance our sustainability strategy, we embrace our shared responsibility to be good stewards of the environment.
Management Comment
Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, "We continued to achieve steady growth of revenue, net profit, and free cash flow in the first half of 2023. Our revenue increased 6.3% year-over-year to RMB18.87 billion, or 27.9% if excluding COVID-19 commercial projects. Our adjusted non-IFRS net profit attributable to owners of the Company increased 18.5% year-over-year, outpacing the revenue growth rate, and our free cash flow achieved RMB2.93 billion, as a result of the Company's pursuit of operational excellence and productivity."
"The Company's performance in the first half of 2023 demonstrated that WuXi AppTec's unique CRDMO and CTDMO business models can effectively meet the growing demands from customers worldwide and continue to drive solid growth for the Company. In 2023, we aim to deliver a 5-7% revenue growth, increase adjusted non-IFRS gross profit by 13-14%, and expand free cash flow by 750-850%. We remain committed to prioritizing our customers' needs and enhancing our capacity and capabilities as we support our customers' efforts to bring groundbreaking therapies to patients around the world. Together, we can realize our vision that 'every drug can be made and every disease can be treated'."
Consolidated Statement of Profit or Loss[4] |
|||||
RMB Million |
Three Months Ended |
Six Months Ended |
|||
2023 |
2022 |
2023 |
2022 |
||
Revenue |
9,907.5 |
9,281.8 |
18,871.3 |
17,756.3 |
|
Cost of services |
(5,877.5) |
(5,869.9) |
(11,315.6) |
(11,329.4) |
|
Gross profit |
4,030.0 |
3,412.0 |
7,555.7 |
6,426.8 |
|
Other income |
243.8 |
144.8 |
439.8 |
240.5 |
|
Other gains and losses |
863.4 |
1,270.9 |
1,061.2 |
1,389.9 |
|
Impairment losses under expected credit losses |
(95.4) |
(22.4) |
(101.7) |
(58.8) |
|
Impairment losses recognized on non-financial assets |
(42.9) |
- |
(42.9) |
- |
|
Selling and marketing expenses |
(177.6) |
(182.4) |
(353.5) |
(355.6) |
|
Administrative expenses |
(657.1) |
(688.9) |
(1,326.5) |
(1,307.8) |
|
R&D expenses |
(309.7) |
(377.2) |
(667.0) |
(657.2) |
|
Operating Profit |
3,854.5 |
3,556.8 |
6,565.1 |
5,677.9 |
|
Share of results of associates |
(30.7) |
25.4 |
(76.5) |
(70.8) |
|
Share of results of joint ventures |
(0.6) |
(0.9) |
7.7 |
1.4 |
|
Finance costs |
(36.9) |
(39.1) |
(101.1) |
(67.6) |
|
Profit before tax |
3,786.3 |
3,542.2 |
6,395.2 |
5,540.9 |
|
Income tax expense |
(615.2) |
(522.5) |
(1,038.3) |
(865.2) |
|
Profit for the period |
3,171.1 |
3,019.7 |
5,356.9 |
4,675.7 |
|
Profit for the period attributable to: |
|||||
Owners of the Company |
3,145.0 |
2,992.8 |
5,313.1 |
4,635.8 |
|
Non-controlling interests |
26.1 |
26.9 |
43.8 |
39.9 |
|
3,171.1 |
3,019.7 |
5,356.9 |
4,675.7 |
||
Consolidated Statement of Profit or Loss[5] |
|||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||
2023 |
2022 |
2023 |
2022 |
||
Weighted average number of ordinary shares for |
|||||
– Basic |
2,940,013,234 |
2,923,689,260 |
2,936,843,517 |
2,922,374,327 |
|
– Diluted |
2,948,738,581 |
2,952,359,250 |
2,949,311,622 |
2,951,897,466 |
|
Earnings per share attributable to ordinary |
|||||
– Basic |
1.07 |
1.02 |
1.81 |
1.59 |
|
– Diluted |
1.07 |
0.95 |
1.79 |
1.48 |
|
[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 |
Consolidated Statement of Financial Position[6] |
||
RMB Million |
June 30, |
December 31, |
2023 |
2022 |
|
Non-current Assets |
||
Property, plant and equipment |
24,544.5 |
23,444.9 |
Right-of-use assets |
2,248.3 |
1,857.5 |
Goodwill |
1,882.7 |
1,822.1 |
Other intangible assets |
928.5 |
926.3 |
Interests in associates |
1,098.2 |
1,135.7 |
Interests in joint ventures |
75.9 |
67.3 |
Deferred tax assets |
567.3 |
492.1 |
Financial assets at fair value through profit or |
9,167.8 |
8,954.3 |
Other non-current assets |
102.3 |
1,054.9 |
Biological assets |
1,123.6 |
938.0 |
41,739.1 |
40,693.1 |
|
Current Assets |
||
Inventories |
3,891.9 |
3,952.6 |
Contract costs |
778.2 |
678.8 |
Biological assets |
1,045.3 |
1,037.3 |
Amounts due from related parties |
59.8 |
123.0 |
Trade and other receivables |
9,237.4 |
7,590.4 |
Contract assets |
1,234.3 |
1,048.2 |
Income tax recoverable |
5.4 |
16.0 |
Financial assets at FVTPL |
81.6 |
2.0 |
Derivative financial instruments |
- |
135.6 |
Other current assets |
1,659.4 |
1,427.8 |
Pledged bank deposits |
1.6 |
1.8 |
Bank balances and cash |
9,585.0 |
7,983.9 |
27,580.1 |
23,997.2 |
|
Total Assets |
69,319.1 |
64,690.3 |
[6] If the sum of the data below is inconsistent with the total, it is caused by rounding. |
Consolidated Statement of Financial Position (continued)[7] |
||
RMB Million |
June 30, |
December 31, |
2023 |
2022 |
|
Current Liabilities |
||
Trade and other payables |
7,092.1 |
7,253.4 |
Amounts due to related parties |
18.7 |
14.5 |
Derivative financial instruments |
1,026.9 |
115.4 |
Contract liabilities |
3,188.4 |
2,496.6 |
Borrowings |
4,024.2 |
3,874.1 |
Lease liabilities |
193.7 |
205.3 |
Income tax payables |
819.1 |
517.8 |
Other current liabilities |
- |
22.1 |
16,363.2 |
14,499.4 |
|
Non-current Liabilities |
||
Borrowings |
397.9 |
279.1 |
Deferred tax liabilities |
409.3 |
440.5 |
Deferred income |
885.1 |
910.9 |
Lease liabilities |
1,064.9 |
983.8 |
Convertible bonds-debt component |
- |
502.0 |
Convertible bonds-embedded derivative |
- |
147.9 |
Other long-term liabilities |
- |
0.1 |
2,757.2 |
3,264.3 |
|
Total Liabilities |
19,120.4 |
17,763.7 |
Net Assets |
50,198.8 |
46,926.7 |
Capital and Reserves |
||
Share capital |
2,968.1 |
2,960.5 |
Reserves |
46,857.2 |
43,629.4 |
Equity attributable to owners of the Company |
49,825.3 |
46,590.0 |
Non-controlling interests |
373.5 |
336.7 |
Total Equity |
50,198.8 |
46,926.7 |
[7] If the sum of the data below is inconsistent with the total, it is caused by rounding. |
Adjusted Non-IFRS Net Profit Attributable to the Owners of the Company[8] |
||||
RMB Million |
Three Months Ended |
Six Months Ended |
||
2023 |
2022 |
2023 |
2022 |
|
Net profit attributable to the owners of the Company |
3,145.0 |
2,992.8 |
5,313.1 |
4,635.7 |
Add: |
||||
Share-based compensation expenses |
158.1 |
179.5 |
324.4 |
360.0 |
Issuance expenses of convertible bonds |
- |
0.5 |
0.3 |
0.9 |
Fair value gain from derivative component of |
- |
(191.7) |
(40.2) |
(274.5) |
Foreign exchange related gains |
(500.7) |
(164.4) |
(336.5) |
(158.5) |
Amortization of intangible assets acquired from merge |
14.4 |
14.2 |
28.5 |
28.7 |
Non-financial assets impairment |
42.9 |
- |
42.9 |
- |
Non-IFRS Net Profit attributable to the owners of the |
2,859.7 |
2,830.9 |
5,332.5 |
4,592.2 |
Add: |
||||
Realized and unrealized gains from venture capital |
(107.8) |
(583.7) |
(230.2) |
(290.1) |
Realized and unrealized share of gains from joint |
0.6 |
0.9 |
(7.7) |
(1.4) |
Adjusted non-IFRS net profit attributable to the owners of |
2,752.6 |
2,248.1 |
5,094.7 |
4,300.7 |
[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 6,000 customers 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 customers' 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 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, 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 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:
Ms. Ruijia Tang (for investors)
IR Director
Email: tang_ruijia@wuxiapptec.com
Mr. Davy Wu (for media)
PR Director
Email: davy_wu@wuxiapptec.com