WuXi Biologics Announces 2020 Results

The group adheres to its commitment to the highest international quality standards and is committed to building a world-class quality system
.
WuXi Biologics is currently the only biopharmaceutical company in China that has passed the U.
S.
Food and Drug Administration (FDA), European Medicines Agency (EMA) and Brazil's National Health Surveillance Administration (ANVISA) at the same time, ranking among the top five CDMOs in the world
.
In 2020, the group passed a total of 41 global customer audits and 1 GMP inspection by the drug regulatory agency, with no key findings
.

In addition, the group has produced more than 1,100 batches of stock solutions and 690 batches of preparations, with a success rate of nearly 100%
.
It is worth mentioning that the Group's No.
3 Original Liquid Plant (MFG3) has completed 132 batches of production since its operation in April 2018, achieving a 100% success rate
.

Continue to improve ESG standards, strengthen corporate governance, and continue to give back to society

The Group implements the concept of environmental, social and governance (ESG) development, carries out a wealth of public welfare activities to practice corporate social responsibility (CSR), improves management transparency, promotes healthy and sustainable development, and continues to give back to the society
.
The Group improves the level of corporate governance by improving the transparency of information disclosure and attaching great importance to employee career development opportunities.
It adopts advanced one-time production technology to reduce the use of water and detergents, strengthen the recycling of waste water, and save energy and reduce consumption
.
In 2020, the Group won MSCI (MSCI) ESG rating A, institutional investors (Institutional Investor) "Best ESG Award", and was included in the FTSE4Good Index Series (FTSE4Good Index Series), highlighting the group's ESG field The achievements are widely recognized
.

In 2020, the Group will launch its CSR strategy and fulfill its mission to empower global employees, partners, patients and society: build an internal volunteer association to manage and organize public welfare activities, and record the types and duration of employee volunteer services through a professional system; Poor families in Jiangxi Province donated small medicine boxes; provided scholarships for students with rare diseases
.
In addition, the group is also actively preparing for WuXi Biologics Charity Foundation, focusing on public welfare undertakings in the fields of public health, rare diseases, cancer, caring for disadvantaged groups and environmental protection, to ensure the orderly and sustainable development of the group
.

Dr.
Chen Zhisheng, CEO of WuXi Biologics, said: "Despite the many challenges brought by the COVID-19 pandemic and huge pressure on the global supply chain, we have delivered every project perfectly to our customers with our outstanding execution and leading technology platform.
Action, action must be fruitful; we continue to challenge ourselves, break the limit, lean forward, and achieve the'impossible' task from DNA to emergency use authorization (EUA) in just one year
.
The new crown epidemic is a touchstone for more customers Knowing the best WuXi Biologics has brought us closer to the cooperation relationship with our customers
.
These achievements and glory are inseparable from the hard work of all employees.
I am proud of the dedication shown by everyone
.
In 2020, WuXi Biologics’ revenue, net profit, and gross profit hit new highs; both the “follow the molecule” and “win the molecule” strategies have continued to expand its market share; its overseas presence has continued to expand, and its global supply chain network has been continuously improved; implementation of the “global dual-factory production” Strategy, self-construction and mergers and acquisitions at the same time, to supplement the group's urgently needed raw liquid and preparation production capacity
.
Our global planned production capacity is as high as 430,000 liters, which will strongly support the group to launch any project within four weeks, empowering 80 INDs and 7 each year Biological product listing application
.
Looking ahead, we will continue to expand new channels, focus on microbe and virus industrialization platforms, and deepen the vaccine business to escort the rapid growth of the group in the future
.
"

Dr.
Chen Zhisheng emphasized: “As a global company, we attach great importance to the sustainable development of ESG
.
During the COVID-19 pandemic, we immediately empowered our customers to rapidly develop and produce anti- coronavirus neutralizing antibodies and COVID-19 vaccines to fight the global COVID-19 epidemic.
Contribute to key forces
.
Our business fundamentals are not afraid of the impact of the new crown epidemic and have always maintained strong growth
.
North America is still our largest market, the European market has increased by 43.
4% year-on-year, and the Chinese market and other markets have increased by more than 75% year-on-year
.
We firmly believe in diversification The growth engine of the company will promote the continued rapid growth of the business and fulfill the promise to investors
.
We are also very happy to have a good start at the beginning of 2021 - bucking the trend and adding 28 new projects[2], and signing US$720 million service contracts
.
This year It is the tenth year of WuXi Biologics' development history.
We are proud of our brilliant achievements in the past ten years, and look forward to the wonderful development of the next ten years
.
Create extraordinary trends, maintain integrity and create new ones, seek the potential of breaking bamboo, and empower a win-win situation.
, Gather the momentum of the four seas, and move forward side by side
.
"

Dr.
Ge Li, Chairman of WuXi Biologics, concluded: “For the global health industry, the outbreak of the new crown epidemic in 2020 is both a challenge and an opportunity
.
In this year, we have broken through ourselves, innovated, forge ahead, and empowered.
Embrace new ideas, new technologies, new capabilities, scale capabilities, and productize capabilities
.
Looking to the future, we will continue to build the highest, widest and deepest capabilities and technology platform in the global biopharmaceutical industry, empowering partners and benefiting the majority Patients
.
We will also continue to work tirelessly to create greater value for patients, customers and shareholders, and realize the great vision of'let the world have no hard drugs and hard to treat diseases' as soon as possible
.
"

 2020 annual results

In 2020, the Group's revenue increased by 40.
9% year-on-year to reach RMB 5.
612 billion
.
The main drivers of revenue growth are: 1) With the leading integrated technology empowerment platform, the industry’s best project delivery time and excellent project execution history, the Group has won a significant increase in the market share of new integrated projects; 2) Successfully launched "Win the molecule" strategy, adding more late-stage clinical projects to increase near-term revenue; 3) Accelerate and efficiently promote more new crown projects in the second half of 2020; 4) Significant growth in milestone revenue
.

Gross profit increased by 52.
7% to 2.
533 billion yuan, with a gross profit margin of 45.
1%
.
The increase in gross profit margin was mainly attributable to: 1) strong growth in the number of integrated projects; 2) increase in capacity utilization; 3) continuous improvement in operating efficiency; 4) rapid increase in revenue from milestones with higher gross profit margins, partly due to the ramp-up of new plants’ production capacity Offset by
.

During the reporting period, net profit increased by 67.
5% year-on-year to RMB 1.
693 billion, and net profit margin increased by 480 basis points year-on-year to 30.
2%
.
The significant increase in net profit margin is mainly due to: 1) the significant increase in the number of integrated projects has led to a substantial increase in revenue; 2) continuous improvement in capacity utilization and operating efficiency has driven gross profit growth; 3) increased investment income, and part of the increase in the Group The impairment loss of financial assets is offset
.

Adjusted net profit increased by 42.
8% year-on-year to RMB 1.
716 billion, excluding the influence of the following factors: 1) exchange gains and losses; 2) equity incentive plan expenses; 3) fair value gains of listed equity securities and unlisted investments measured by FVTPL
.
The adjusted net profit margin increased from 30.
2% in 2019 to 30.
6% in the same period this year, an increase of 40 basis points
.

Basic and diluted earnings per share were RMB 0.
43 and 0.
40, respectively, representing a year-on-year increase of 59.
3% and 60.
0%
.

Adjusted diluted earnings per share increased by 36.
7% year-on-year to RMB 0.
41
.

Major financial ratios (for the year ended December 31)

Note: Basic and diluted earnings per share are presented after taking into account the impact of share subdivisions
.
The comparative figures have also been restated on the assumption that the share subdivision took effect in the previous year
.