① The company’s net profit attributable to shareholders for the first half of the year has surpassed RMB 10 billion for the first time, with profitability and order growth advancing in tandem; ② The company announced a comprehensive upward revision of its 2026 guidance for revenue, capital expenditures, and free cash flow; ③ The company has filed a lawsuit in the U.S. challenging its erroneous inclusion on the Entity List (1260H), with a hearing having been held in July.
Benefiting from double-digit revenue growth across its three business segments—chemistry, testing, and biology—the CXO leader $WUXI APPTEC (02359.HK)$ reported a nearly 40% year-over-year increase in revenue and a nearly 30% rise in net profit for the first half of the year. On this basis, the company has comprehensively raised its full-year operational targets for 2026.
Wuxi Apptec announced on August 3 that the company generated revenue of RMB 28.897 billion in the first half of the year, an increase of 38.93% year-over-year; net profit attributable to shareholders of the listed company amounted to RMB 11.08 billion, up 29.43% year-over-year; and net profit excluding non-recurring gains and losses reached RMB 10.572 billion, surging 89.39% year-over-year. The company plans to distribute a cash dividend of RMB 5.10 per 10 shares to all shareholders for the first half of the year.
Simultaneously, the company raised its full-year 2026 revenue target from the previous range of RMB 51.3–53.0 billion to RMB 58.5–60.5 billion, increasing the projected growth rate for continuing operations revenue from 18%–22% to 35%–39%. Capital expenditures were revised upward from RMB 6.5–7.5 billion to RMB 7.5–8.5 billion, and adjusted free cash flow was correspondingly raised from RMB 10.5–11.5 billion to RMB 13.5–14.5 billion.
Boosted by this news, $WUXI APPTEC (02359.HK)$ Hong Kong-listed shares surged nearly 10% at Tuesday's open, trading at HK$179.1.
Meanwhile, Hong Kong-listed pharmaceutical outsourcing概念股 collectively rose,$JOINN (06127.HK)$ up 5.90%, $ASYMCHEM (06821.HK)$ up 5.50%.
By segment, the chemistry business remains the primary driver of Wuxi Apptec’s performance growth. In the first half of the year, the chemistry segment generated revenue of RMB 24.986 billion, an increase of 53.28% year-over-year, further elevating its share of total revenue.
Within this segment, revenue from small-molecule D&M (development and manufacturing) services reached RMB 14.99 billion, up 72.7% year-over-year. As of the end of June, the total number of small-molecule D&M pipeline programs increased to 3,731, with 15 additional commercial and Phase III projects added in the first half of the year, reflecting continued expansion in late-stage programs. The closely watched TIDES (oligonucleotide and peptide) business maintained robust growth, generating revenue of RMB 7.26 billion in the first half, an increase of 44.3% year-over-year. Client count grew by 39%, and the number of molecules served rose by 68%. Based on current order visibility, the company expects full-year TIDES revenue to grow by approximately 45% year-over-year.
Testing services generated revenue of RMB 2.481 billion, up 31.53% year-over-year, while biology services reported revenue of RMB 1.392 billion, an increase of 11.21% year-over-year—marking double-digit growth across all three core business segments.
Notably, the company’s profitability continued to improve. Gross margin for the first half reached 53.9%, up 9.46 percentage points year-over-year, setting a new record high for the same period in history. The company attributed this primarily to ongoing optimization of production processes, higher capacity utilization driven by an increase in late-stage clinical and commercial projects, and sustained improvements in operational efficiency.
Regarding the significantly higher growth rate of adjusted net profit compared to net profit, the company explained that this was mainly due to substantial non-recurring gains from the sale of a portion of its equity stake in associate company WuXi XDC in the same period last year, which elevated the net profit base. This year, no similar large non-recurring gains occurred, thereby providing a clearer reflection of the underlying business profitability.
Backlog is a key indicator for assessing future performance. As of the end of June, the company’s backlog for continuing operations stood at RMB 66.43 billion, up 25.2% year-over-year and further increasing from the end of the first quarter, reaching a new historical high.
Regarding the comprehensive upward revision of its full-year financial targets, Ge Li, Chairman and CEO of Wuxi Apptec, stated that the company has achieved robust growth in the first half of the year across revenue, profit, cash flow, and backlog from continuing operations, prompting it to raise all key annual performance metrics and further accelerate its global capacity expansion.
To better meet continuously growing client demand, the company plans to further expedite its global capacity build-out and has decided to commence construction of its new Changzhou facility ahead of schedule.
In response to ongoing market concerns regarding geopolitical and compliance matters, the company stated in its interim report that, concerning its erroneous inclusion on the U.S. Department of Defense’s Section 1260H list in June 2026, it filed a lawsuit and a motion for a preliminary injunction on June 11 in the U.S. District Court for the District of Columbia. A related hearing was held on July 22. The company is pursuing all available legal avenues to rectify this erroneous 1260H listing and will promptly inform shareholders of any material developments in this pending litigation.
In this regard, Ge Li stated, “The relevant legal proceedings are currently underway, and we firmly believe that, following an objective and impartial judicial review, the truth will ultimately prevail.”
Editor/rice