WuXi AppTec Reports Strong 2020 Annual Results

WuXi News
2020

Revenue Up 28.5% Year-over-Year to RMB16,535 Million

Net Profit Attributable to Owners of the Company Up 59.6% Year-over-Year to RMB2,960 Million

Diluted EPS Up 56.3% Year-over-Year to RMB1.25

Adjusted Non-IFRS Net Profit Attributable to Owners of the Company Up 48.1% Year-over-Year to RMB3,565 Million

Adjusted Diluted Non-IFRS EPS Up 45.2% Year-over-Year to RMB1.51

(SHANGHAI, March 30, 2021) — WuXi AppTec (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, 2020 (“Reporting Period”).

All financials disclosed in this press release are prepared based on International Financial Reporting Standards (or “IFRSs”), in currency of RMB.

 

Management Comment

Dr. Ge Li, Chairman and CEO of WuXi AppTec, said, “2020 presented unique challenges as the sudden outbreak of COVID-19 dramatically impacted all of us personally and professionally. The power of our geographically-diverse and comprehensive service platform truly came to bear, enabling us to turn the enormous challenges brought on by COVID-19 into new opportunities to support our customers and the patients we all serve. The continued strength of our operating platform once again proved not only to our customers, but also to the broader market the resilience of our business model. Over our twenty year history, WuXi AppTec has earned a solid reputation via our track record of continuously delivering stable and outstanding results for our stakeholders.

“Thanks to the combined efforts of all our employees and strong support from our global customers, we overcame the impact of the COVID-19 pandemic and continued to meet customer demand and project schedules. Through early implementation of our business continuity plans, we managed to ensure the health of our employees whilst continuing to operate safely. This allowed us to leverage our global presence and comprehensive capabilities to meet project delivery timelines and capture new business opportunities. During the Reporting Period, our revenue increased 28.5% over the prior year to RMB16,535 million and our adjusted Non-IFRS net profit attributable to owners of the Company increased 48.1% to RMB3,565 million.”

“Relentlessly executing our ‘Follow the Customer / Follow the Project / Follow and Win the Molecule’ strategy, the power of our integrated business model allowed us to achieve remarkable results. During the Reporting Period, we added over 1,300 new customers and our total number of active customers now exceeds 4,200. Our China-based laboratory services and CDMO services realized robust growth and we gained market share across different business units. At our U.S.-based laboratories and clinical research services, we strengthened our capabilities and increased our backlog to support future growth. Meanwhile, we also continued to invest in building new capabilities and capacity globally. In early 2021, we acquired OXGENE, a pioneering United Kingdom-based cell and gene therapies contract research and development organization. We also announced the acquisition of a drug product manufacturing facility in Couvet, Switzerland. We believe these investments and geographic diversification will enable us to sustain our long-term growth objectives.”

Dr. Ge Li concluded, “The fundamentals of our business remain very strong. Looking ahead, we will further increase investment in our R&D service capabilities and in our capacity of new modalities, in keeping with the industry trend and to better enable our customers in bringing innovative medicines to patients in need – realizing our vision that ‘every drug can be made and every disease can be treated.’”

 

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 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, 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 and goodwill impairment. 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 4,200 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

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