Revenue increased by 1.0% YoY to RMB 8,574.2 millionNon-COVID revenue grew by 7.7% YoY, with non-COVID late-phase & commercial manufacturing YoY growth of 11.7%Added 61 new integrated projects, including 4 from late-phase and commercial stageClient's molecule recently acquired by MNC, highlighting a potential best-in-class CD3 asset utilizing three of our proprietary technology platformsTotal integrated projects of 742, one of the largest portfolios of complex biologicsSuccessful EMA inspections of 13 products and FDA inspections of 2 products in 1H24
HONG KONG, Aug. 21, 2024 /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 2024 ("Reporting Period").
Financial Highlights
Revenue: The Group's revenue for the Reporting Period matches that of the first half of 2023, totaling RMB 8,574.2 million, with a year-on-year (YoY) increase of 1.0%. Excluding the COVID sales in the same period last year, the non-COVID revenue grew by 7.7%, and the non-COVID late-phase & commercial manufacturing revenue grew by 11.7% YoY. Key drivers supporting our base revenue growth include: (i) the successful execution of the Group's "Follow and Win the Molecule" strategies, combined with our leading technology platforms, best-in-industry timeline and excellent execution track records; (ii) an expanded spectrum of services offered to the biologics industry, including fast-growing technology platforms such as antibody-drug conjugates (ADCs) and bispecific & multi-specifics; (iii) robust growth in pre-IND revenue, which more than offset the impact of significant Discovery Services deals in 1H 2023; and (iv) the utilization of newly expanded capacities, including the ramp-up of manufacturing sites in Europe and the U.S.
Gross Profit and Gross Profit Margin: IFRS gross profit was RMB3,350.0 million compared to RMB3,560.6 million in the same period last year. Adjusted gross profit was RMB3,811.2 million compared to RMB3,993.1 million in the same period last year. IFRS gross profit margin was 39.1% and adjusted gross profit margin was 44.4%. The decrease of gross profit margin was mainly due to the margin mix impact from the significant Discovery Services deals in 1H 2023, the slightly lower capacity utilization in China due to the COVID volume in the same period last year, the continued impact of the ramp-up of new manufacturing facilities in Ireland, Germany, and the U.S., all of which were partially offset by the efficiencies achieved from the WBS and other continuous improvement initiatives.
EBITDA and EBITDA Margin: EBITDA was RMB2,805.9 million compared to RMB3,230.6 million in the same period last year. Adjusted EBITDA was RMB3,570.4 million compared to RMB3,818.3 million in the same period last year. EBITDA margin was 32.7% and adjusted EBITDA margin was 41.6%.
Net Profit and Net Profit Attributable to Owners of the Company: IFRS net profit and net profit attributable to owners of the Company was RMB1,780.3 million and RMB1,499.1 million, respectively, representing a YoY decline of 23.9% and 33.9%. The decline was due to, among other factors, (i) an increase in selling, marketing and administrative expenses ("SG&A") as the Group continues to invest in its geographic footprint, (ii) an increase in SG&A for WuXi XDC Cayman Inc., a non-wholly owned subsidiary of the Company, as a standalone listed company on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 2268), and (iii) an unmaterialized foreign exchange translation loss as a result of the depreciation of Euro against RMB year-to-date.
Adjusted Net Profit: Adjusted net profit was RMB2,544.8 million, down 13.0% YoY from a record-high base in 1H 2023.
Basic earnings per share (EPS): Basic EPS and adjusted basic EPS were RMB0.37 and RMB0.55, respectively.
Business Highlights
Amid a dynamic geopolitical landscape, the Group added 61 new integrated projects in 1H 2024, demonstrating the Company's resilience and its ability to maintain growth. This, compared to 46 new projects added in 1H 2023, is one of our best 6-month periods for new project adds to date. Among the 61 newly added projects, 52 were from pre-IND, 5 from early-phase, 3 from late-phase, and 1 was from the commercial manufacturing phase. We believe that our robust business activities in the pre-IND stage signal early signs of a biotech funding recovery. During the Reporting Period, the Group continued to execute its "Win-the-Molecule" strategy, adding 9 post-IND projects, among which 4 are in the late-phase and commercial manufacturing stages. Since 2018, the Group has won 78 projects under the "Win-the-Molecule" initiative, with the winning formula centered on quality, speed, and advanced technological platforms.
The number of late-phase projects increased to 56, laying a strong foundation for future commercial manufacturing. The number of commercial manufacturing projects was 16, as we removed 8 COVID and 1 non-COVID dormant projects. The total number of integrated projects was 742, representing one of the largest portfolios of complex biologics, including bispecifics & multispecifics (123), ADCs (167), fusion proteins (76) and vaccines (23). Among the 123 bispecifics & multispecifics projects, WuXiBody™ and SDArBody™ accounted for nearly half, as both proprietary platforms continue to gain worldwide recognition.
As of June 30, 2024, total backlog reached US$20.1 billion, the same level as the first half of last year, including US$13.0 billion service backlog and US$7.1 billion upcoming potential milestone backlog. Backlog within 3 years exceeded US$3.6 billion, providing high visibility for near-term revenue opportunities.
The Group offers end-to-end CRDMO services through our global network. Our Ireland site is making great progress overall and is seeing significant commercial manufacturing demands from 2024 and onwards, with 2025 almost fully booked. MFG6.1 successfully completed its first PPQ campaign in 1H 2024, and MFG6.2 expansion is on track to be completed in ...
