WuXi AppTec Reports Strong 2019 Annual Results
Revenue Growth Accelerated 33.9% Year-Over-Year to RMB12,872 Million
Adjusted Non-IFRS Net Profit Attributable to Owners of the Company Up 38.2% Year-Over-Year to RMB2,407 Million
Adjusted Diluted Non-IFRS EPS Up by 19.7% to RMB1.46
(SHANGHAI, March 24, 2020) — WuXi AppTec Co., Ltd. (stock code: 603259.SH / 2359.HK), a company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries worldwide to advance discoveries and deliver groundbreaking treatments to patients, announces its audited annual results for the year ended December 31, 2019 (“Reporting Period”).
All financials disclosed in this press release are prepared based on International Financial Reporting Standards (or “IFRSs”).
Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, “We achieved accelerated growth in 2019, attributable to the continued execution of our ‘long-tail’ strategy and our CDMO business model. Our revenue growth accelerated 33.9% over the prior year to RMB12,872 million and our adjusted Non-IFRS net profit attributable to owners of the Company growth accelerated 38.2% to RMB2,407 million. We leveraged the strength of our integrated, end-to-end R&D services platform to increase customer conversion, creating further synergies across all our business segments.”
“By relentlessly executing our ‘Follow the Project / Follow the Molecule / Follow the Customer’ strategy, the power of our integrated business model allowed us to achieve robust growth. Meanwhile, we also continued to invest in new capabilities and capacity, including talent, laboratories, facilities and technologies globally. We believe these investments will enable us to sustain our long-term growth objectives.”
Commenting on the impact of COVID-19 pandemic, Dr. Ge Li said, “We encountered the outbreak of COVID-19, which has affected almost every company and individual. We lost about one month of operations in China, with the greatest impact on our Wuhan site, and to some degree on our clinical CRO/SMO business as most hospitals in China stopped study monitoring visits and patient enrollment during the outbreak. However, the Company implemented our Business Continuity Plan very early on to minimize the impact to customers’ project delivery timelines. We made extraordinary efforts to prepare for the resumption of operations across all of our sites in China, with our top priority being compliance with government regulations and protecting our employees’ health and safety. By leveraging our multi-site operations, certain high priority projects were transferred from our Wuhan site to other sites to sustain project delivery timelines as much as possible, with our customers’ agreement. Prior to the COVID-19 outbreak, we were expecting yet another year of strong revenue growth in 2020. As a result of the timely implementation of our Business Continuity Plan, we expect that we will win back some lost time and reduce the COVID-19 impact to potentially two to three weeks of operations.”
Dr. Ge Li continued, “The fundamentals of our business remain very strong, and we expect that we can continue to meet customer demand and project delivery schedules going forward, even as our U.S. facilities begin to experience impacts from COVID-19 pandemic. At present, our China facilities are demonstrating strong resiliency, as China moves into a next phase in rising to the challenge of the pandemic. We therefore expect that our China operations will assume even greater responsibilities than usual for keeping the R&D and manufacturing engine humming. Looking ahead, we are exploring opportunities to expand our manufacturing capabilities and capacities in the U.S., including via acquisitions and new site build-outs in order to meet global customers’ future supply chain needs. We are also actively using new communication technologies like Zoom to keep in close communication with our global customers. With our global footprint and telecommunication technologies, we are enabling our customers to work at home while they collaborate with us to advance their R&D programs.”
Dr. Ge Li concluded, “This situation has served as a good reminder that the current methods of disease prevention, diagnosis and treatment are still limited, and the efficiency of new drug research and development needs to be improved. As a global company with open-access enabling platform in the global healthcare industry, we must continue to do the right things for patients – a goal that we have pursued since our founding. We will continue to focus on enabling global partners and assisting them to bring the best medicines to patients in need. With our healthy balance sheet, strong operating cash flow, broad R&D platform and the application of modern telecommunication technology, we will navigate through this COVID-19 crisis with our customers and strengthen our industry-leading position.”
2019 Financial Highlights
2019 Business Highlights
2019 Capabilities Enhancement and Capacities Expansion
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 clients’ 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, exclude the impact in revenue and cost from effective hedge accounting, share-based compensation expenses and amortization of intangible assets acquired in business combinations, and Non-IFRS net profit attributable to owners of the Company, which exclude share-based compensation expenses, listing expenses and 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. 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 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.
About WuXi AppTec
WuXi AppTec provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries worldwide to advance discoveries and deliver groundbreaking treatments to patients. As an innovation-driven and customer-focused company, WuXi AppTec helps our partners improve the productivity of advancing healthcare products through cost-effective and efficient solutions. With industry-leading capabilities such as R&D and manufacturing for small molecule drugs, cell and gene therapies, and testing for medical devices, WuXi AppTec’s open-access platform is enabling more than 3,900 collaborators from over 30 countries to improve the health of those in need – and to realize our vision that “every drug can be made and every disease can be treated.” Please visit: http://www.wuxiapptec.com