WuXi AppTec Q1 revenue increased by 29% year-on-year, net profit excluding non-recurring items rose by 27%, and the core profit from chemical business drove a significant surge | Financial Report Insights

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WuXi AppTec's business accelerated across the board in the first quarter of 2026, with revenues from continuing operations growing by nearly 40% year-on-year. Core profitability improved significantly, as the scale effect of the integrated CRDMO business model is rapidly translating into profit growth.

The company achieved an operating income of RMB 12.44 billion in the first quarter, up 28.8% year-on-year; net profit attributable to shareholders of the listed company was RMB 4.65 billion, up 26.7% year-on-year. Core net profit excluding non-recurring gains and losses increased by 83.6% year-on-year. Adjusted non-IFRS net profit (further excluding gains and losses from equity-type capital investments) was approximately RMB 4.6 billion, up 71.7% year-on-year, reflecting a substantial improvement in the quality of the company's main business profitability.

As of the end of March 2026, continuing operations had orders in hand totaling RMB 59.77 billion, up 23.6% year-on-year, providing strong visibility for annual performance. Adjusted non-IFRS gross margin jumped from 41.9% in the same period last year to 50.4%, reflecting comprehensive improvement in profitability quality.

Chemistry business was the core driver this quarter, with revenue up 43.7% year-on-year, of which small molecule D&M business growth reached 80.1%, becoming the engine of growth. The company also announced plans to start construction of the new Changzhou site ahead of schedule to meet the growing needs of its customers.

Chemistry business leads strongly, small molecule D&M growth exceeds 80%

In the first quarter, chemistry business achieved revenue of RMB 10.62 billion, up 43.7% year-on-year, accounting for the vast majority of the company's total revenue.

The small molecule process development and manufacturing (D&M) business was the most prominent growth highlight this quarter. Benefiting from advancing late-stage pipelines, proactive capacity planning, and efficient execution, the business achieved revenue of RMB 6.93 billion in the first quarter, up 80.1% year-on-year. As of the end of March 2026, the total number of small molecule D&M pipelines expanded to 3,550 molecules, including 89 commercial projects, 94 Phase III clinical projects, 386 Phase II clinical projects, and 2,981 preclinical and Phase I clinical projects. In Q1, commercial and Phase III clinical stage projects had a net increase of 9, with high-value late-stage projects continuing to grow.

Upstream R&D (R business) continues to feed incremental growth downstream. Over the past 12 months, the company has successfully synthesized and delivered more than 420,000 new compounds for clients, with 83 molecules converted from R to D in the first quarter. The company adheres to the "follow the client" and "follow the molecule" strategy, building long-term partnerships with global customers and establishing a foundation for the steady operation of the CRDMO business model.

TIDES business (oligonucleotides and peptides) achieved revenue of RMB 2.38 billion in the first quarter, up 6.1% year-on-year; the number of D&M customers served grew by 28%, while the number of molecules served increased by 59% year-on-year. The company expects the TIDES business revenue for the full year to grow by about 40%. To meet rising demand, the company announced plans to initiate construction of a new Changzhou site ahead of schedule.

Testing and Biology businesses grow steadily, new molecule business contributes over 30%

Testing business achieved revenue of RMB 1.13 billion in the first quarter, up 27.4% year-on-year. In particular, drug safety assessment business revenue grew by 34.8% year-on-year, maintaining its leading position in the Asia-Pacific region. New molecule business accounted for more than 30% of first-quarter revenues, remaining ahead in nucleic acid, conjugate, multispecific antibody, and peptide fields. In drug metabolism and pharmacokinetics, the company is steadily expanding new capacity in Qidong and Shanghai to meet growing and diverse client needs.

Biology business achieved revenue of RMB 670 million in the first quarter, up 10.1% year-on-year. During the reporting period, the biology business continued to generate leads for the company’s CRDMO model, bringing in over 20% new customers. The integrated in vitro screening platform accelerated breakthroughs, while in vivo pharmacology capabilities continued to improve. Non-oncology business maintained its competitive advantage. New molecule business accounted for over 30% of first-quarter revenues, with rapid growth of new customers in nucleic acid, conjugate antibody, and peptide fields.

Gross margin leaps, cash flow remains strong

In terms of profitability, total profit increased by 31.0% year-on-year to RMB 5.61 billion. Adjusted non-IFRS gross profit rose to RMB 6.27 billion, with gross margin improving to 50.4%, up about 8.5 percentage points from 41.9% in the same period last year. By business segment, chemistry gross margin rose from 47.5% to 52.8%, testing gross margin improved significantly from 24.8% to 35.5%, and biology gross margin rose slightly to 36.7%.

Cash flow from operating activities was RMB 3.6 billion, up 12.5% year-on-year. Adjusted free cash flow (excluding the impact of major equity and business sale-related income tax expenses) was RMB 2.49 billion, up 8.6% year-on-year.

As of the end of March 2026, total assets reached RMB 107.41 billion, up 4.2% from the end of the previous year; net assets attributable to shareholders of the listed company amounted to RMB 84.22 billion, up 5.7%. Basic earnings per share were RMB 1.59, up 23.3% year-on-year. This quarterly report is unaudited and was released by company chairman Ge Li on April 27, 2026.

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