Strong US Market! WuXi AppTec's 2025 Net Profit Attributable to the Parent Company Surged 105.2%, 2026 Revenue Growth Expected at 18%–22% | Earnings News

WuXi AppTec continues its high growth driven by the "integrated CRDMO" model.

The financial report released on Monday shows that WuXi AppTec achieved revenue of 45.46 billion yuan in 2025, a year-on-year increase of 15.8%; if discontinued operations are excluded, revenue from continuing operations was 43.42 billion yuan, with the year-on-year growth rate further increasing to 21.4%.

Profitability improved even more significantly. The company's full-year gross profit was 21.38 billion yuan, a year-on-year increase of 33.5%, and the gross profit margin rose to 47.0%, an increase of 6.2 percentage points year-on-year; net profit attributable to the parent company was 19.19 billion yuan, doubling year-on-year with a 105.2% increase, and the net profit margin reached as high as 42.2%. Measured on an adjusted (non-IFRS) basis, net profit attributable to the parent company was 14.96 billion yuan, a year-on-year increase of 41.3%, corresponding to a net profit margin of 32.9%—indicating that core operational recovery and one-off gains jointly boosted the financial statement performance.

The order side also provided strong visibility: as of the end of 2025, the company's continuing operations had a backlog of orders of 58.00 billion yuan, a year-on-year increase of 28.8%. In terms of regional structure, revenue from the US market was 31.25 billion yuan, a year-on-year surge of 34.3%, becoming the primary source of incremental growth.

The company proposes to distribute a final dividend of 15.7927 yuan (tax inclusive) per 10 shares, totaling approximately 4.712 billion yuan. Management also provided an Annual Revenue Forecast for 2026 of 51.3–53.0 billion yuan, and expects revenue from continuing operations to grow by 18%–22% year-on-year.

Revenue Breakdown: Continuing Operations Grow Faster, Chemistry Business as the Main Engine

From the perspective of the financial statement structure, the divergence between "continuing operations" and "discontinued operations" was evident in 2025: revenue from discontinued operations was 2.035 billion yuan, a year-on-year decrease of 41.4%, while revenue from continuing operations was 43.42 billion yuan, a year-on-year increase of 21.4%, serving as the core driver for the group's overall growth.

By business segment (based on reportable segments):

• Chemistry Business (WuXi Chemistry): Revenue of 36.47 billion yuan, a year-on-year increase of 25.5%, accounting for the absolute majority of the group's revenue.
• Testing Business (WuXi Testing): Revenue of 4.04 billion yuan, a year-on-year increase of 4.7%, resuming positive growth after experiencing fluctuations.
• Biology Business (WuXi Biology): Revenue of 2.68 billion yuan, a year-on-year increase of 5.2%.
• Other Businesses: Revenue of 236 million yuan, a year-on-year decline of 23.8%.

From the "incremental" perspective, the pharmaceutical chemistry business almost single-handedly drove the growth; testing and biology businesses reflected more of a recovery-driven growth, with scale and elasticity significantly weaker than those of the chemistry business.

Regions and Orders: Strong Pull from US Customers

In 2025, revenue from continuing operations by region showed "unbalanced" characteristics:

• US Customers: 31.25 billion yuan, +34.3% year-on-year
• European Customers: 4.82 billion yuan, -4.0% year-on-year
• Chinese Customers: 5.47 billion yuan, -3.5% year-on-year
• Other Regions: 1.88 billion yuan, +4.1% year-on-year

Against this backdrop, the company's backlog of orders increased by 28.8% year-on-year to 58.00 billion yuan, meaning that delivery pace and capacity release will continue to determine the speed of revenue realization in 2026. For investors, this structure also suggests two points: first, the company's short-term growth is more dependent on the prosperity of the US market and project progress; second, the recovery in Europe and China will affect the "breadth" and volatility of growth.

Chemistry Business: Small Molecule D&M Remains Robust, TIDES Nearly Doubles as the Second Growth Curve

The growth of the chemistry business is not driven by a single point, but is a combination of "R lead generation + D&M volume growth + TIDES acceleration."

1. Continuous Lead Generation in R, Supporting CRDMO Rolling Growth

The company disclosed that in 2025, it synthesized and delivered over 420,000 new compounds for customers; the R-to-D conversion molecules for the full year reached 310. For the CRDMO model, the conversion efficiency at the R stage determines the thickness of the subsequent clinical project pool.

1. Small Molecule D&M Maintains Strong Resilience, Pipeline and Late-stage Project Numbers Rise

Small molecule D&M revenue in 2025 was 19.92 billion yuan, a year-on-year increase of 11.4%. A total of 839 new molecules were added during the year, and as of the end of the year, the total number of small molecule D&M pipeline projects was 3,452, including:

• 83 commercial projects
• 91 clinical Phase III projects
• 377 clinical Phase II projects
• 2,901 preclinical and clinical Phase I projects

1. Capacity and Compliance: "Zero-Defect" FDA Inspections across Multiple Sites, Reactor Expansion

API bases in Changzhou, Taixing, and Jinshan all passed FDA on-site inspections with "zero defects"; as of the end of 2025, the total volume of small molecule API reactors had increased to over 4,000 kL. In a stage where global customers place more importance on supply chain stability and compliance certainty, such information often has more significance for order conversion than "expansion plans."

1. TIDES Continues High-speed Expansion, Revenue +96% Year-on-year

In 2025, TIDES business revenue reached 11.37 billion yuan, a year-on-year surge of 96.0%, driving a 20.2% year-on-year increase in the backlog of orders. The company disclosed that the number of TIDES D&M service customers increased by 25% year-on-year, and the number of serviced molecules increased by 45% year-on-year; meanwhile, the Taixing peptide capacity construction was completed ahead of schedule in September 2025, bringing the total volume of peptide solid-phase synthesis reactors to over 100,000 L.

From the language of the financial report, TIDES has shifted from "capacity ramp-up realizing revenue" to "capacity expansion driving accelerated penetration of projects and customers," reinforcing the growth structure of the chemistry segment.

Testing and Biology: Revenue Recovery but Gross Margin Decline, Price Pressure Begins to Reflect in Financial Statements

Both the testing and biology segments saw single-digit growth recovery in 2025, but both experienced a consistent "decline in gross margin" on the profit side.

• Testing Business: Revenue was 4.04 billion yuan, +4.7% year-on-year; but gross profit was 1.176 billion yuan, -14.1% year-on-year, with the gross margin falling to 29.1% (-6.4pct year-on-year). The company explained this as "market impact and price factors gradually being reflected as orders convert."
• Biology Business: Revenue was 2.68 billion yuan, +5.2% year-on-year; gross profit was 923 million yuan, -3.4% year-on-year, with the gross margin falling to 34.5% (-3.1pct year-on-year), also pointing to pricing pressure.

Notably, both businesses mentioned that the "revenue share of new molecule business has increased to over 30%" and maintained advantages in fields such as nucleic acids, peptides, conjugates, and multi-specific antibodies; they also improved efficiency through automation and software tools (e.g., pharmacoproperty evaluation spectral analysis efficiency increased by 83%). However, from the financial results, the efficiency improvements have not yet fully offset the downward pressure on pricing in the short term—the key variables going forward are whether the proportion of high-technical-barrier projects can further increase and whether price competition will continue to deepen in 2026.

Gross Margin Jumps to 47%: Project Structure Optimization and Capacity Efficiency Improvement as Main Drivers

In 2025, the company's overall gross margin rose to 47.0%, a year-on-year increase of 6.2 percentage points. The core explanation is the increased proportion of late-stage clinical and commercial projects, leading to better capacity utilization, labor efficiency, and operational efficiency.

By segment, the improvement in gross margin was mainly contributed by the chemistry business:

• Chemistry Business Gross Margin: 51.2%, +5.5pct year-on-year (gross profit +40.7% year-on-year)
• Testing Business Gross Margin: 29.1%, -6.4pct year-on-year
• Biology Business Gross Margin: 34.5%, -3.1pct year-on-year

In other words, the "rise" in the company's gross margin was driven more by the scale expansion, process optimization, and structural improvement of late-stage projects in the chemistry segment, rather than a synchronized improvement across all business lines. Therefore, the focus of observation for 2026 also falls on the chemistry segment: whether the continued expansion of late-stage/commercial projects can withstand the pricing pressure in testing and biology.

Final Dividend Proposed at Approximately 4.7 Billion Yuan

Regarding shareholder returns, the Board of Directors proposed a final dividend for 2025 of 15.7927 yuan (tax inclusive) per 10 shares, totaling approximately 4.712 billion yuan based on the issued share capital on the announcement date. Combined with the full-year free cash flow of 10.89 billion yuan, this dividend intensity has a certain safety cushion in terms of cash flow coverage, but considering the company is still in a stage of capacity investment and global expansion, the balance between future dividends and capital expenditure remains a point of attention.

2026 Guidance: Revenue of 51.3–53.0 Billion Yuan, Focus on Order Conversion, Pricing, and External Environment Variables

The company expects overall revenue in 2026 to be between 51.3 and 53.0 billion yuan, and expects revenue from continuing operations to grow by 18%–22% year-on-year, while emphasizing that this outlook is based on the current backlog of orders and is subject to uncertainties, assuming stability in the global pharmaceutical industry, the international trade environment, and the regulatory environment of major operating locations.

At the execution level, the core variables for 2026 are more concentrated on three points:

1. The conversion efficiency of the backlog of orders into revenue (especially the continued volume release of late-stage/commercial small molecule projects and TIDES);

2. Whether price pressure in the testing and biology segments eases, and whether the increase in the proportion of "new molecules/high barriers" can bring about a stabilization of gross margins;

3. The impact of exchange rates, regulations, and the international trade environment on cross-regional delivery and customer budgets—the expansion of exchange losses in 2025 has already indicated the magnifying effect of external variables on profit volatility.