Hong Kong – WuXi Biologics (“WuXi Bio”, 02269) reported strong interim results for the six months ended 30 June 2026, underpinned by double-digit top-line expansion, sharp margin gains and record project wins. Management simultaneously raised full-year revenue guidance after broad-based growth across geographies and modalities.
Financial Highlights (H1 2026) • Revenue rose 18.4% year-on-year to RMB 11.79 billion (USD growth: 23.4%). • Adjusted gross profit margin expanded 280 bp to 48.4%; adjusted EBITDA margin held at 45.6%. • Adjusted EBITDA increased 24.9% to RMB 5.40 billion, while adjusted net profit attributable to owners climbed 38.4% to RMB 3.30 billion. • Adjusted basic EPS advanced from RMB 0.59 to RMB 0.81. • Free cash flow turned positive at approximately RMB 1.50 billion; gearing remained low at 1.2%, with RMB 13.70 billion of available funds and just RMB 0.70 billion of borrowings.
Operational Momentum • Pipeline scale: Integrated projects grew 23% to 1,064, after 169 additions (123 organic, 46 via the BioDlink acquisition). • Project mix: Over 70% of new mandates are bi-/multi-specific antibodies and ADCs; total late-stage assets reached 78, with 28 commercial manufacturing (CMO) projects. • Backlog: Total contract backlog rose to USD 25.10 billion (up USD 4.50 billion year-on-year), including USD 12.60 billion in service backlog and USD 12.40 billion in potential milestone payments. Backlog realizable within three years increased ~30% to USD 5.50 billion. • Geographic revenue split: North America 58% (+14% YoY), Europe 17% (flat; +10% ex-vaccine divestiture), China 17% (+51%), Rest of World 8% (+43%). • Bi- & multi-specifics revenue grew ~30% on a high base; these complex modalities, together with ADCs, now dominate new project inflow. • Manufacturing execution: 100% success rate across process performance qualification campaigns; cumulative drug-substance batches delivered exceeded 2,600 with a 98.7% success rate since 2022.
Capacity & Technology Expansion • Global bioreactor capacity on track to surpass 500,000 L, with major builds in Singapore (120,000 L DS and ~100 million units DP) and Worcester/Cranbury in the U.S. • Acceleration of China capacity via brownfield projects, including the new MFG17 microbial site in Shanghai and acquisition of Transcenta’s facility. • Proprietary platforms scaling rapidly: – WuXia TrueSite targeted-integration cell-line technology adopted in 70+ programmes since its Oct 2025 launch, delivering 8–12 g/L titers and 30–50% COGS reduction. – Expanded ADC tool-box now spans WuXiDARx conjugation, hydrophilic linkers and novel payloads.
Strategic & ESG Initiatives • Ongoing divestiture of 51.1% stake in purification-media unit BestChrom to sharpen CRDMO focus; closing targeted for December 2026. • WuXi Bio Business System delivered 1.5 percentage-point gross-margin uplift in H1 through lean, digital and sustainability projects. • Sustained top-tier ESG ratings, including MSCI AAA and EcoVadis Platinum, with commitments to energy, water and waste intensity reductions.
Outlook Management now guides for FY 2026 constant-currency revenue growth of 20–23% (prior: 16–20%), equivalent to 15–18% on a reported basis. The company targets a 20% revenue CAGR over the next three years, driven by: 1) manufacturing revenue CAGR of ~30%, supported by four pillars—“follow-the-molecule”, “win-the-molecule”, expanding biosimilar opportunities and integrated drug-product services; 2) ongoing mix shift toward high-complexity modalities; and 3) disciplined, demand-led global capacity additions.
Investor Engagement Management will host conference calls on 26 August 2026 (09:00 Chinese, 20:00 English, Hong Kong time) to discuss the interim performance and strategic outlook. Registration links are provided in the announcement.