Profit

WuXi AppTec: POSITIVE PROFIT ALERT

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WUXI APPTEC CO., LTD.*

無錫藥明康德新藥開發股份有限公司

(Stock company incorporated in the People’s Republic of China with limited liability)

(Stock code: 2359)

POSITIVE PROFIT ALERT

This announcement is published by the Company simultaneously on the Shanghai Stock Exchange in accordance with the Rules Governing the Listing of Shares on the Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited in accordance with the disclosure obligations under Rule 13.09(2)(a). ) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Cap 571 of the Laws of Hong Kong). The Board hereby announces that the Company expects to record an increase in revenues and net profit attributable to shareholders of the Company for the financial year ended 31 December 2021 compared to the corresponding period of the year 2020.

Shareholders and potential investors are advised to exercise caution when trading in securities of the Company.

This announcement is published by WuXi AppTec Co., Ltd.* (無錫藥明康德新藥開發股 份有限公司) (the “Society“) simultaneously on the Shanghai Stock Exchange pursuant to the Rules Governing the Listing of Shares on the Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited pursuant to disclosure obligations under Rule 13.09(2)

  1. Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Cap 571 of the Laws of Hong Kong). The Board of Directors of the Company (the “advice“) hereby announces that the Company (together with its subsidiaries, the “Group“) expects to record an increase in revenues and net income attributable to shareholders of the Company for the financial year ended December 31, 2021 compared to the corresponding period of 2020.

The details and reasons for this estimated increase are presented below.

Important Notice:

  1. The Company’s revenue was estimated between RMB22,818.8955 million and RMB22,901.5726 million for the year 2021, which represents an increase of a range between RMB6,283.4640 million and 6 RMB 366.1411 million, or 38.0% and 38.5% as increase year-on-year, compared to RMB 16,535.4315 million for the year 2020.
  2. The net profit attributable to shareholders of the Company has been estimated between RMB 4,973.1956 million and RMB 5,032.4004 million for the year 2021, which represents an increase of a range between RMB 2,012.9601 million and 2,072.1649 million RMB, or 68.0% and 70.0% as increase year-on-year, compared to RMB 2,960.2355 million for the year 2020.
  3. The net profit attributable to shareholders of the Company after deduction of non-recurring profit or loss was estimated between RMB 4,006.9714 million and RMB 4,054.6734 million for the year 2021, which represents an increase of a range between RMB 1,621.8694 million and 1,669 .5714 million RMB, or 68.0% and 70.0% year-on-year increase, compared to RMB 2,385.1020 million for the year 2020.
  1. ESTIMATED RESULTS FOR THE CURRENT PERIOD
    1. Period to which the estimated results apply January 1, 2021 to December 31, 2021.
    2. Estimated results
      1. Based on the preliminary calculation of the Company’s finance department, the Company’s revenue has been estimated between RMB22,818.8955 million and RMB22,901.5726 million for the year 2021, representing a increase in a range between RMB6,283.4640 million and RMB6,366.1411 million, or 38.0% and 38.5% year-on-year increase, compared to RMB16,535.4315 million for the year 2020.
      1. The net profit attributable to shareholders of the Company has been estimated between RMB 4,973.1956 million and RMB 5,032.4004 million for the year 2021, which represents an increase of a range between RMB 2,012.9601 million and 2,072.1649 million RMB, or 68.0% and 70.0% as increase year-on-year, compared to RMB 2,960.2355 million for the year 2020.
      2. The net profit attributable to shareholders of the Company after deduction of non-recurring profit or loss was estimated between RMB 4,006.9714 million and RMB 4,054.6734 million for the year 2021, which represents an increase of a range between RMB 1,621.8694 million and 1,669 .5714 million RMB, or 68.0% and 70.0% year-on-year increase, compared to RMB 2,385.1020 million for the year 2020.
    1. The estimated operating results have not been audited by a chartered accountant.
  1. RESULTS FOR THE CORRESPONDING PERIOD IN 2020
    1. Company turnover: RMB 16,535.4315 million. Net income attributable to
      shareholders of the Company: 2,960.2355 million RMB. Net profit attributable to shareholders of the Company after deducting non-recurring profit or loss: RMB 2,385.1020 million.
    2. Earnings per share (basic): 1.27 RMB. (The Company has implemented the 2020 profit allocation and capitalization of reserves in 2021, with 2 new shares issued for every 10 existing shares. Based on the Company’s total issued share capital after conversion, basic earnings per share of 2020 has been adjusted to RMB1.06).
  1. MAIN REASONS FOR THE ESTIMATED GROWTH IN RESULTS FOR THE CURRENT PERIOD
    1. Main activity impact
      The Company constantly implements the strategy of “following the molecules”. The WuXi Chemistry business segment continues to develop the integrated, end-to-end contract research, development and manufacturing organization (CRDMO) business. As such, it has seen strong order demand, which has accelerated the Company’s revenue growth in 2021. Laboratory analysis and testing and clinical CRO/SMO services under WuXi Testing, biology business under WuXi Biology and small molecule drug discovery services under WuXi Chemistry maintained strong growth. During 2021, the Company also continuously improved production utilization and further revealed the scale effect by optimizing operational efficiency.
    2. Impact of non-recurring result
      During the year 2021, the non-recurring net profit increased compared to that of the year 2020, mainly for the following reasons: (1) due to the fluctuation of the share price of the listed companies invested by the Company , the gain from the change in fair value and investment income of certain non-current financial assets of the Company decreased compared to those of the year 2020. It was estimated that this would result in a profit of approximately RMB1,662.9311 million for the year 2021, while the impact of 2020 was net profit of RMB1,793.7549 million, representing a year-on-year decrease of approximately RMB 130.8238 million of profit; (2) on the other hand, due to the variation in the price of the Company’s H shares, the non-cash fair value loss on the derivative part of the bonds convertible into Company’s H shares decreased and was estimated at approximately RMB1,000.5987 million for the year 2021, while the impact of 2020 was a net loss of RMB1,349.3866 million, representing a year-on-year decrease in loss of approximately RMB 348.7879 million; (3) in addition, during the year 2021, the Company realized the
      transfer of payload and small molecule binding business and relevant assets to WuXi XDC (Changzhou) Co., Ltd.* (常州藥明合聯生物技術有限公司) (being the wholly owned subsidiary established by WuXi XDC Co., Ltd.* (無錫藥明合聯生 物技術有限公司), formerly known as WuXi Biologics Conjugation Co., Ltd.* (無錫藥明偶聯生物技術有限公司)) with a net disposal gain of approximately RMB 273.7158 million. For more details on the aforementioned asset transfer, please refer to the section entitled “Letter from the Board – 8. Proposed Related Party Transactions – The Asset Transfer Agreement” of the Company’s Circular in dated April 9, 2021.

IV. RISK WARNING

There are no material uncertainties regarding the Company identified as of the date of this announcement that could affect the accuracy of the estimated results.

  1. OTHER INFORMATION
    The Board wishes to remind investors that the above estimated results of the Company for the year 2021 have been prepared on the basis of preliminary accounting information only. Please refer to the Company’s audited 2021 annual results announcement to be released later for final financial figures. Investors are advised to pay attention to the associated investment risks.

Shareholders and potential investors are advised to exercise caution when trading in securities of the Company.

By order of the board

WuXi AppTec Co., Ltd.

Dr Ge Li

President

Hong Kong, January 18, 2022

As of the date of this announcement, the Company’s Board of Directors includes Dr. Ge Li, Mr. Edward Hu, Dr. Steve Qing Yang, Mr. Zhaohui Zhang and Dr. Ning Zhao as Executive Directors, Mr. Xiaomeng Tong and Dr. Yibing Wu as non-executive directors and Dr. Jiangnan Cai, Ms. Yan Liu, Mr. Dai Feng, Dr. Hetong Lou and Mr. Xiaotong Zhang as independent non-executive directors.

*For identification purposes only

Warning

WuXi AppTec Co.Ltd. published this content on January 18, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on January 19, 2022 00:11:04 UTC.

Public now 2022

All news about WUXI APPTEC CO., LTD.
Sales 2021 22,662 million
3,570 million
3,570 million
Net income 2021 4,630M
729 million
729 million
Net cash 2021 7,230 million
1,139 million
1,139 million
PER 2021 ratio 70.8x
2021 performance 0.36%
Capitalization 344B
54,178m
54,220M
EV / Sales 2021 14.9x
EV / Sales 2022 11.2x
# of employees 33,305
Floating 60.7%

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Number of analysts 22
Last closing price

CNY117.80

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CNY183.51

Average Spread / Target 55.8%