WuXi Biologics has outstanding performance in 2020

Gross profit and gross profit margin: Gross profit increased by 52.
7% year-on-year to RMB 2.
533 billion
.
The gross profit margin hit a record high, increasing by 350 basis points to 45.
1%, mainly due to the strong growth of the group's integrated projects, the continuous improvement in capacity utilization and operating efficiency, and the significant increase in milestone revenue, which was partially offset by the increase in production capacity of the new plant
.

Net profit and net profit margin: Net profit increased significantly by 67.
5% year-on-year to RMB 1.
693 billion
.
Attributable profit attributable to the owners of the Group increased by 66.
6% year-on-year to RMB 1.
689 billion
.
Net interest rate reached a new high, which surged 480 basis points to 30.
2%, mainly due to the strong growth of integrated projects, the improvement of capacity utilization and operating efficiency, and the increase in investment income, which was partially offset by the increase in impairment losses of the Group’s financial assets
.
Adjusted net profit margin increased by 40 basis points year-on-year to 30.
6%
.

Diluted earnings per share (EPS): Diluted earnings per share increased by 60.
0% year-on-year to RMB 0.
40, and adjusted diluted earnings per share increased by 36.
7% year-on-year to RMB 0.
41
.

2020 business highlights

Without fear of the impact of the new crown pneumonia epidemic and overcoming major challenges, the growth momentum remains strong
.
During the reporting period, the number of comprehensive projects increased from 103 to 334, and the number of post-clinical projects increased from 16 to 28, injecting strong momentum into the rapid growth of the group's future performance
.
One to two new commercial production projects are added, and it is expected that more projects will enter the commercial production stage in 2021
.

The total amount of uncompleted orders increased by 122% year-on-year from US$5.
102 billion on December 31, 2019 to US$11.
324 billion on December 31, 2020, which promoted sustained and rapid growth in performance
.

Milestone revenue surged by 71.
7% to 94.
6 million US dollars, mainly due to more projects entering the late clinical stage and signing more new projects, and the overall profit level reached a new high
.

The WuXiBody® project and antibody-conjugated drug (ADC) projects have increased to 29 and 40 respectively, demonstrating that the Group's leading biotechnology platform has been widely recognized by the industry
.
At the same time, the Group is accelerating the construction of a microbial and virus industrialization platform, expanding the capacity and scale of new channels, and empowering partners to deploy innovative biological products such as mRNA vaccines and viral vector vaccines
.

The vaccine CDMO business continued to develop, and a total of 4 cooperation agreements were reached
.
In 2020, the group signed a USD 3 billion vaccine contract with a leading global vaccine company
.
Since the COVID-19 pandemic, the group has signed a COVID-19 vaccine (COVID-19) contract worth more than US$260 million to ensure a stable supply of the COVID-19 vaccine and make positive contributions to the global fight against the pandemic
.

Continue to invest in expanding the global production footprint
.
The production base in Cranbury, New Jersey, USA is expected to be put into operation in late 2021, and the R&D laboratory of King of Prussia in Pennsylvania has been operating in 2020 and contributed revenue; the construction of the biopharmaceutical production base in Dundalk, Ireland is proceeding as scheduled and is expected to be 2022 Put into GMP production in the second half of the year; the vaccine production base has completed the topping of the main building
.

Through mergers and acquisitions, we will accelerate the increase of the Group's urgently needed global raw liquid and preparation production capacity, and consolidate the foundation for growth
.
The Group acquired raw solution and preparation production plants in Germany and Hangzhou, China to quickly replenish existing production capacity and contribute to the production of new crown vaccines and other biological drugs
.
In March 2021, the Group announced the acquisition of Suqiao Biopharmaceuticals (CDMO), a biopharmaceutical contract customized research and development and production service company, to introduce more projects and increase production capacity to help the business continue to grow rapidly
.

The new "winner" strategy and the existing "follow the molecule" strategy are driven by two wheels
.
In 2020, 11 projects at different clinical stages will be transferred from outside, which will significantly increase the Group's recent revenue growth
.

Enabling 12 new crown neutralizing antibody projects to complete more than 20 new drug clinical trial applications (IND) in the United States, Europe, China and Singapore
.
With the empowerment of the excellent integrated technology platform, the new crown project completed the IND declaration in just 3-5 months.
The outstanding service capabilities of the Group further strengthened customer stickiness
.

The world-class quality system has been repeatedly recognized by global regulatory agencies, consolidating leading competitive advantages
.
The Wuxi undiluted solution production base has passed the on-site GMP inspection by the Brazilian Health Supervision Administration (ANVSA) and completed the remote GMP inspection by the European Medicines Agency (EMA)
.

The North American market is still the largest market of the Group.
In 2020, it will overcome the adverse effects of the epidemic and achieve a year-on-year growth of 16%
.
The Chinese market has benefited from a favorable macro environment such as the rapid recovery from the epidemic and the growth of investment in research and development of new drugs, with a growth rate of 75.
1%
.
The European market and other markets grew by 43.
4% and 75.
1% respectively
.
The four major regional markets are advancing side by side and developing vigorously, ensuring the continuous rapid growth of the group's performance
.

Carry out the concept of environmental, social and governance (ESG) development, implement corporate social responsibility (CSR) through a wealth of public welfare activities, enhance the transparency of corporate governance, promote healthy and sustainable development, and give back to society
.
The group won the MSCI (MSCI) ESG rating A, institutional investors (Institutional Investor) "Best ESG Award", and was included in the FTSE4Good Index Series (FTSE4Good Index Series)
.

In 2020, the talent team will continue to expand to 6,646
.
The Group plans to add more than 3,000 employees in 2021 to build the cornerstone of performance growth
.

The outbreak of the new crown epidemic in early 2020 has brought many challenges, but the Group has successfully turned crises into opportunities and achieved remarkable results: the number of integrated projects, outstanding orders and financial performance have all reached record highs; although the epidemic has reduced the group’s two-month operating efficiency, The gross profit margin and net profit margin remained outstanding during the reporting period, reaching the highest in history; based on the world’s leading biotechnology platform, the team quickly formed a team of scientists with the extraordinary execution of WuXi Biologics, and accelerated the development and development of more than 10 new crown projects.
The production process has contributed positively to the global fight against the new crown epidemic; the new "winning molecule" strategy has achieved remarkable results, and continued to introduce new clinical phase projects from the outside; the group continues to strengthen the construction of technical platforms such as bispecific antibodies and ADC drugs, and create mRNA vaccines The whole industry chain technology platform
.
In 2020, the Group will continue to win the trust of customers with its excellent integrated technology empowerment platform and excellent execution, consolidate its leading position in the market, provide a strong guarantee for the continued success in 2021, and lay a solid foundation for sustainable rapid growth in the future
.

New crown epidemic turned crisis into opportunity, comprehensive project and uncompleted orders hit a new high

Although it was unable to communicate face-to-face with customers during the epidemic, the group still reached extensive cooperation beyond expectations.
During the reporting period, 103 new comprehensive projects were added, and the total number of comprehensive projects rose to 334 (including 28 late-stage clinical projects and 2 commercial projects).
Chemical projects), the total amount of uncompleted orders increased by 122.
0% year-on-year to US$11.
324 billion, a record high
.
Even if the new crown project is excluded, the group's new projects still achieve the best results in history
.
The perfect delivery of the new crown project demonstrates the core competitiveness of the group: the rapid establishment of a professional research team to empower partners to develop and produce new crown projects, greatly shortening the IND delivery cycle, a new crown project completed the IND declaration in just 2.
5 months, setting a new record in the industry
.
The outstanding performance of the Group has won high trust from customers, and the stickiness of customers has continued to increase, which has helped the Group continue to win new projects and further increase its market share
.

"Follow the elements" and "win the elements" strategy two-wheel drive to consolidate the industry leader position

The Group has won the favor of global customers with its continuously expanding capabilities and scale, and on this basis, it has launched a new "winning molecule" strategy, and continuously and steadily introduced projects in different clinical stages
.
In 2020, 11 clinical phase projects will be transferred to the Group from outside, including 6 clinical phase III projects
.
The Group's strong technical strength, high-quality services and global layout have been highly recognized by customers, which has helped to achieve new highs in performance
.
Looking ahead, the Group will continue to consolidate its core competitiveness, implement the bi-molecular strategy, and achieve sustainable and rapid growth
.

WuXi Hyde Group Continues to Make Forward-looking Layout and Set Sail

The subsidiary WuXi Hyde vaccine CDMO business has made significant progress in 2020, with a total of 4 cooperations reached, including the signing of a US$3 billion vaccine production contract with a world-leading vaccine company
.
Since the COVID-19 pandemic, WuXi Hyde has signed a contract for a COVID-19 vaccine worth more than US$260 million to ensure a stable supply of the COVID-19 vaccine and further actively contribute to the global fight against the epidemic
.
The Group has insight into market demand, forward-looking layout of vaccine CDMO business, keenly grasping development opportunities, and leading the industry development wave
.

Strengthen the technology platform and deepen the global layout 

The Group applies innovative technologies to create an industry-leading integrated platform, empowering global partners to deploy a new generation of biopharmaceuticals
.
WuXiBody® and ADC projects have grown to 29 and 40 respectively
.
In 2020, the group also helped customers complete the first WuXiBody® project IND application
.
At the same time, the Group firmly grasped market development opportunities, accelerated the construction of microbe and virus industrialization platforms and mRNA vaccine research and development and production technologies, and continued to broaden new channels
.

The Group continues to expand its production capacity through self-construction and mergers and acquisitions, and continues to implement the "global dual-factory production" strategy to meet the growing global demand for new crown vaccines and other biological drugs
.
The R&D laboratory of King of Prussia in Pennsylvania, USA has overcome the impact of the new crown epidemic and has been put into operation in 2020; the production base in Cranbury, New Jersey (MFG18) is expected to be opened in 2021 and will become the first US production base operated by the group
.
The Irish biopharmaceutical production base (MFG6 and MFG7) has completed 85% of the construction schedule; the subsidiary WuXi Hyde's Irish vaccine production base has completed the topping of the main building
.
In addition, the original solution and preparation plants acquired by the group in Germany and Hangzhou, China will also be put into operation this year
.
It is estimated that after 2024, the Group's global production capacity will reach 430,000 liters[1], which will effectively guarantee the surge in production of late-stage clinical projects
.

WuXi Biologics is in action against the new crown

After the outbreak of the new crown epidemic in early 2020, the group quickly mobilized more than 240 scientists to form a professional research team to support global partners in the research and development and production of new crown projects through an integrated technology empowerment platform
.
At present, this team has expanded to 3,000 scientists, and a total of 12 new crown projects have successfully completed more than 20 IND declarations in the United States, Europe, China and Singapore under the empowerment of the group
.
The Group is favored by customers with its industry-leading technology and excellent execution, and its market share has further expanded
.

Outstanding production capacity with world-class quality system

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 new crown epidemic and the huge pressure on the global supply chain, we have perfectly delivered every project 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 allowed us to have a closer 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 vaccines for the global fight against the COVID-19 pandemic.
Contributing 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 will promote the continued rapid growth of the business and fulfill the promises 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 a US$720 million service contract
.
This year It is the tenth year of WuXi Biologics' development history.
We are proud of the brilliant achievements in the past ten years and look forward to the wonderful development of the next ten years
.
Create extraordinary momentum, keep upright and create new things, 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 become extremely empowered.
Embrace new ideas, new technologies, new capabilities, scale capabilities, and productize capabilities
.
Looking forward 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
.

About WuXi Biologics

WuXi Biologics (stock code: 2269.
HK), as a Hong Kong listed company, is the world's leading open and integrated biopharmaceutical capabilities and technology empowerment platform
.
The company provides a full range of end-to-end R&D services for global biopharmaceutical companies and biotechnology companies to help anyone and any company discover, develop and produce biopharmaceuticals, realize the whole process from concept to commercial production, and accelerate global biopharmaceutical research and development Process, reduce research and development costs, and benefit patients
.
As of December 31, 2021, there are 334 comprehensive projects developed on WuXi Biologics platform, including 169 in pre-clinical research phase, 135 in early clinical phase (phase I, phase II), and 28 in late clinical phase (Phase III) and 2 are in the commercial production stage
.
It is estimated that by 2024, the company's planned biopharmaceutical production bases in China, Ireland, the United States, Germany and Singapore will have a combined production capacity of 430,000 liters, which will effectively ensure that the company provides customers with global quality through a sound and strong global supply chain network.
Standard biological medicine
.

[1] The figure is the capacity plan as of March 22, 2021

[2] Data as of March 22, 2021