Thank you. Thank you, Yang. Good morning, everyone. Happy New Year. I'm glad to be here first today to kick off the day. I hope our presentation can provide you with some valuable insights. I would like to start by sharing the background and highlights of our company. Afterwards, our full management team will be happy to address any questions you may have. As usual, today's presentation includes some forward-looking statements. We just released our 2025 positive profit alert this week, with preliminary estimates of revenue and profit. The final results for 2025 will be disclosed in our annual report on March 24. We will also provide our formal guidance for 2026 at that time. The healthcare industry is both inspiring and exciting, driven by continuous technology advancement and science innovations that improve human health and longevity. However, the industry also faces significant challenges.
Long development cycles cause high costs and low success rates, and numerous unmet clinical needs. Biotech companies race against time to advance their drug pipeline, striving to outpace competitors and achieve value creation milestones. Large pharma companies continue to bolster their pipeline through M&As, licensing deals, or by enhancing internal R&D efficiency. So to address those challenges, we were founded to be an integrated enabling platform, guided by our vision that every drug can be made and every disease can be treated. We provide our global customers, both biotech and large pharma, with one of the highest quality, fastest speed, and the most cost-effective solutions to help them significantly improve efficiency and accelerate the drug development process. This has been our consistent commitment for the past 25 years, putting customers at the top of our priorities.
Every capability we build and every solution we deliver has been driven by one mission: enabling innovation and bringing breakthrough treatment to patients worldwide. So during these days at the J.P. Morgan Conference, we've had the privilege of meeting many customers, partners, and investors. Our role goes beyond providing efficient and high-quality services to innovative drug companies. We also enable our customers to create sustainable equity value, thereby attracting a broader spectrum of investors. So this flywheel not only spurs groundbreaking technology advancements and new drug innovation, but also propels the sustainable growth of the entire ecosystem. So our integrated platform supports every stage of the new drug R&D cycle, from early-stage drug discovery, preclinical and clinical development, all the way to commercial manufacturing.
This unique end-to-end CRDMO platform, with seamless collaboration of our three focused core business segments, so WuXi Biology, WuXi Chemistry, and WuXi Testing, are constantly delivering value to our customers and supporting their efforts to turn scientific discoveries into real-world therapies. As a trusted partner, we are privileged to work alongside nearly 6,000 partners across more than 30 countries over the past year. As a leading global CRDMO company, we expanded our total reactor volume for small molecule APIs to over 4 million liters by the end of 2025 and increased our solid phase peptide synthesizer capacity to more than 100,000 liters. Our small molecule CDMO pipeline continues to grow now to over 3,400 molecules from preclinical to commercial stage. Building on this momentum, we achieved strong growth in 2025 and set new records in revenue, profit, and backlog.
Our total revenue reached 45.5 billion RMB, with continuing operations growing 21.4% year over year. Our adjusted non-IFRS net profit reached 15 billion RMB, resulting in a net profit margin of 32.9%, so a 5.9 percentage point improvement year over year. With a backlog exceeding 55 billion RMB, we are well positioned to support the company's sustainable future growth. Our global network of more than 20 R&D and manufacturing sites spans from Asia, Europe, to North America. We continue to enhance our capabilities and expand global CRDMO capacities to support long-term customer demand, our future growth. So our unique CRDMO business model starts with our integrated research platform, enabling customers to advance innovation from early drug discovery through preclinical and R&D stage. As a key contributor to the industry, this early-stage enabling platform has supported more than 9,000 customers over the past 15 years.
We have also been continuously working with the top 20 global pharmas for the same period, thanks to the trust from the large pharmas. Notably, as a key entry point to our CRDMO ecosystem, this integrated research platform has contributed nearly 65% of the company's new customers and successfully delivered more than 430,000 new compounds to customers over the past 12 months. This not only helps generate the flow and opportunities for our downstream operations, but also creates synergies across business segments. So nearly 30% of our R&D projects are jointly supported by our one-stop solutions to accelerate timelines and drive project delivery. Meanwhile, we have continued to invest in emerging technologies over the past decades and build capabilities at the forefront of innovation. This enables us to develop industry insights and be well prepared whenever our customers need us.
So this page demonstrates our unique CRDMO model with the final chart of WuXi Chemistry's small molecule pipeline. As we just suggested, in the research or R stage, so we successfully synthesized and delivered more than 430,000 new compounds to our customers over the past 12 months. The complexity of these compounds also continued to increase. In the development and manufacturing D&M stage, by Q3 2025, our small molecule CDMO pipeline reached over 3,400 molecules from preclinical to commercial stage, with 621 molecules newly added in the first three quarters of 2025. We are currently supporting 16% of the global clinical stage small molecule new drugs. So every one out of six global clinical stage small molecule new drugs, one out of six, we support. As we enhance the capabilities of our integrated platform, we constantly improve the internal conversion of molecules across the CRDMO value chain.
For example, among the 621 newly added molecules to our D&M pipeline, 250 molecules originated from our R platform. Actually, a majority of our 80 commercial drugs were the result of internal conversion, thanks to our unique CRDMO model. So the CRDMO model is very simple. So follow the molecule, follow the customer, and follow the science. This allows our pipeline to efficiently advance and convert the molecules from early discovery into clinical and commercial phases, capturing high-quality molecules as they progress. So if you look at our phase three and commercial pipeline, the number of molecules has grown from 107 to 167 in the past few years. That's a 56% increase. Concurrently, the revenue from these molecules has surged by more than 150%.
This considerable growth in revenue reflects the increased complexity and the quality of the molecules that we support, as well as the expanded scope and the strengthened partnership with our customers. It serves as a fundamental driver for our sustained future growth, so here are some additional perspectives to demonstrate how we timely address unmet needs for patients, and as a result, the quality of our pipeline. In 2025, FDA approved 30 small molecule new drugs, and we actively supported eight of them, so representing a 27% share. Over the past five years, we have supported 21% of small molecule new drugs approved by FDA during that period of time, so every one out of five FDA-approved drugs that we support, so GLP-1 is another field that I'm sure many of you are familiar with.
We are deeply involved in this sector, and our GLP-1 pipeline growth is outpacing the industry. At present, we are supporting 24 GLP-1 drugs. Of these 24, 15 are small molecule and peptide new drugs in phase two and phase three clinical trials, positioning us to secure a 25% market share. Specifically, at the global clinical stage, we support 11 out of 56 peptide drugs and 12 out of 36 small molecule drugs. Also, additionally, we support one out of seven commercial drugs currently on the market. So leveraging the insights gained during the early-stage research, our CRDMO model enables us to quickly identify and seize the opportunities in emerging new modalities like oligo and peptide. With strengthened capabilities and fast-growing capacity, our Tides business has consistently delivered strong growth in recent years. So we expect Tides revenue to grow another 90% plus in 2025.
Our total capacity of solid phase peptide synthesizer has now exceeded 100,000 liters. This expansion, completed ahead of schedule in September 2025, positions us well to meet growing customer demand. As a result, the company has continuously delivered sustained growth in both revenue and profit, achieving over 20% CAGR in revenue and over 30% CAGR in adjusted net profit in recent years. In 2025, we raised our two-year guidance twice. Yet again, we beat expectations and set new records. Our continuing operations revenue grew 21.4% year over year, with total revenue now reaching RMB 45.5 billion. Our adjusted non-IFRS net profit reached RMB 15 billion, growing 41.3% year over year, resulting in a net profit margin of 32.9%. That's a 5.9 percentage point improvement year over year. This clearly underscores the company's financial resilience throughout the cycles.
Our continued business growth, efficient operations, and enhanced financial management have enabled us to generate sustained free cash flow. This strong cash generation allows us to continue investing in capabilities, capacities, and talents, at the same time also returning value to shareholders. In 2025, we expect CapEx to remain in the range of RMB 5.5 billion-RMB 6 billion. In addition, with such strong business and profit growth, we expect free cash flow to hit another new record. As our CRDMO model evolves, we continue to improve profitability. Our earnings per share have increased almost tenfold since we went IPO. While continuously investing in our capabilities and capacity, the company remains committed to rewarding shareholders. In 2025, the company has implemented nearly RMB 7 billion in cash dividends, share repurchases, and cancellations, representing more than 70% of the company's net profit in 2024.
Over the past seven years, the cumulative amount of dividends and share buybacks has exceeded CNY 20 billion, which is over 40% of our cumulative net profit since IPO. With faith in our CRDMO model to foster long-term growth and profitability, we are confident in our ability to continue delivering value and generating returns for our shareholders, so as an enabler of innovation and a trusted partner, we actively promote sustainability. In 2025, we achieved the highest AAA rating from MSCI for the first time and improved to CDP Climate Change A rating. In addition, we maintained our CDP Water Security A rating and EcoVadis Gold rating. Our near-term emissions reduction targets have been validated by SBTi. Our credibility has been widely recognized by global authority ratings and initiatives, including UNGC, PSCI, S&P Global, and many others.
We continuously drive and execute ESG initiatives in every aspect of our business strategy and operations, so most importantly, we remain steadfast in our unwavering commitment to protecting customer IP and adhering to the highest quality and compliance standards. In 2025, we successfully completed 740 quality audits and inspections conducted by global customers and regulatory agencies, as well as 60 customer information security audits, so this equates to an average of over two quality audits per day and more than one information security audit per week, always 100% pass rate and zero critical findings. 20 of our main operating sites have been certified under the global standard of ISO/IEC 27001, Information Security Management System, so IP is the lifeline of both our company and our customers. Our approach to IP protection is deeply rooted in our founding principles of integrity, adherence to global quality standards, and commitment to world-class security.
So we enforce a zero tolerance policy towards any form of infringement. This has been the core value of WuXi AppTec since our founding. So we recently celebrated our 25th anniversary. The journey over the past 25 years has been extremely rewarding, and we are fully confident in steering the next 25 years with our unique CRDMO model and operational excellence. Central to our strategy is, no doubt, the focus on our CRDMO core business to deliver exceptional services to customers and benefit patients worldwide. To support this, we will relentlessly enhance our global capabilities and capacity to meet long-term customer demand and drive innovation that propels our industry forward. With our unique CRDMO model to closely follow the science and develop in-depth industry insights, we are better positioned to capture new molecule opportunities that will fuel our future growth.
At the same time, we will maintain organizational agility and continuously improve operational excellence to consistently deliver superior efficiency and quality. We believe these efforts will ensure sustained resilience in our profitability and cash flow through all times, enabling value creation and consistent investment in our business growth, talents, and rewarding shareholders, so this concludes my presentation. Thank you for your time, and now we are happy to take your questions.
Thank you, Dr. Chen, and on the stage, we also have Co-CEO Dr. Yang and CFO Ms. Shi on stage, so quickly, if you have questions, you can raise your hand, and we also can accept questions from our online audience. I think you have to submit your questions through the app, digital booth, and so if you have a question, just raise your hand. Otherwise, I will start asking a few questions. Okay, maybe oh, yes, please.
Okay, just a quick question regarding the quality audit inspections, 741 in 2025. Is that like that large number every year, or it's just unique in 2025?
If you could just repeat the question for the broadcast.
Yeah, yeah, sure. I think the question asking is about the number of audits, right? You're trying to understand, is the number consistently high every year or just particularly high in recent years?
So the number for 2025 is record high because the business keeps growing. But this is normal. So that's a large number of quality audits every year. But as the business grows and we have more and more projects, more and more customers, there will be more and more quality audits. So we average two audits every day. But actually, each audit lasts like three-to-five days. So that's a large amount of audits, which represents the growing business.
Yeah, we'll have a question over there.
If we could just yeah.
Yeah, thanks for the presentation. So my question is on the Tides business. We have significantly increased our capacities last year. So if you could help us understand what the utilization stands at? And one question on Tides again is that what do we manufacture here? Is it the entire API, or we are manufacturing intermediates there?
So the first question is about the capacity. Our capacity is highly used for the Tides business, for the solid phase peptide synthesizer. We build it because of the demand. And also, we do both. We do both. We do intermediate as well as API for peptide.
Any plans to increase capacities?
Any plans to increase these capacities over the next few years?
Plan to increase.
Peptide capacity.
Capacities. Yes. Actually, we're going to invest more this year, 2026, and continue to increase the capacity as our pipeline continues to grow.
Is there a target for peptide capacity increase?
We're in the planning stage right now. Yeah. But definitely, we will build one new plant this year. Yeah.
Okay. Questions there?
Thank you. I'm a big supporter of the company. I think manufacturing, doing it all in China, just fine. However, last year, under the Biden administration, the FDA commissioner actually made a statement. He said he didn't like Chinese companies doing this. He thought it was not keeping profitability in America. Do you get any pushback? I don't think you do. But are you getting pushback these days on doing anything in China for American pharma?
I'm sorry, can you repeat? Yeah.
Yeah, if I may. So this audience question is, because of the U.S. government's policy, have we received any pushback of doing things in China?
Okay. Well, that's a very, very, very actually, it sounds very simple, but a very complex question. But if you look at our business in 2024 and 2025, especially the past two years, we still grow very strongly, both 2024 and 2025. And we just have a record of growth in 2025. So from the business result, you can see that the business is growing very strongly.
I just want to add, on a quarter-by-quarter basis, we do disclose the business growth by region. And while we are still preparing for the full-year formal result, as of the third quarter and the last few quarters, the U.S. remains a growth region and actually one of our highest growth regions overall. So it is a direct demonstration, first of all, that customers in the United States continue to use our service, and our service capacity and capabilities remain in high demand.
Okay, so maybe it's my turn to ask questions, and my first question to the management is, management already disclosed profit alerts. That's a record high revenue, record high adjusted non-IFRS profit, so can you give us some kind of color? What is the main driver for the outstanding financial performance for 2025?
Yeah, I think a couple of reasons. One is definitely the demand for the GLP-1. Clearly, it's high. And our execution, so we were able to meet that demand. So that is one factor. And if you take the GLP-1 out, and the rest of the business also grows strongly. So both factors give this result.
Yeah, yeah. And so looking forward this year or even kind of medium to long term, so what can we expect for the kind of next stage?
Yeah. So for 2026, we will give guidance during the annual report, which is March 24. We will give the official guidance at that time. But I can tell you 2026 will be at least similar to 2025.
Interim growth?
Yeah.
What about margin?
CFO, please.
Yeah, I think everyone is pretty inspired by our continuous growth and the profit improvement. I think the main drivers for the profit improvement and pretty resilient on the profit margin expansion is because one is the unique CRDMO model, which allows us to keep growing the top line, which really gives us the benefit from the scale benefits, and we continue to invest the capabilities, capacities, and we continue to make a lot of efforts to optimize our manufacturing process, so keep increasing the utilization of the capacity and also the operation efficiencies. And at the same time, I think you also noticed we refocus on the CRDMO, so by divesting some business, which also allows us to expand the bottom line margin, so I think all these efforts will be continued.
So I think the growth of the bottom line will be continuously pretty aligned with the top line.
Okay, great. Yeah, I look forward to more data in March. Yeah, and a related question is, now we have seen China's kind of currency RMB seem to be appreciating. And since we disclosed our numbers in RMB, and we have a lot of business in overseas markets, so how does this kind of foreign currency fluctuation going to affect our kind of reporting line?
Yeah, I think this year has some impact, but I think people not really feel that in our final, the number we just reported. I think which thanks to all the drivers I just mentioned, so which allow us to have the capabilities to mitigate not only the effects, a lot of other uncertainties, external uncertainties, to make sure. I think the last, the past 25 years, we just celebrated our 25 years anniversary. You can see our growth, our margin sustainability is pretty resilient, which allows us to mitigate a lot of the other uncertainties.
Great.
Yeah, but of course, we will continuously monitor that. This is out of control for every company, not only us, and also, we expand globally for our capabilities and capacities. So those expenditures are not in RMB, so that's a kind of a partial natural hedge as well.
Understood. And I also want to get some more understanding about capital allocation. We talk about management to talk about in 2025, in total, 6.9 billion RMB returned to shareholders in terms of dividend, in terms of share buyback. What can we expect if we look forward this year and even longer term?
Yeah. I think to maintain our sustainable growth, it's very important to allow us to keep investing capabilities and the capacities. At the same time, I think people is also very, very important for our company. They're our core assets as well. We would like to keep retaining our top talent to make sure they are being together with the company and with all the shareholders to drive the company's continued growth. At the same time, if you look at our past five years since our IPO, our dividend policy is pretty consistent. Since last year, 2025, we also introduced the interim dividend payment. I think it's also quite welcome by all the shareholders as well. Of course, every year, we will propose the details to our AGM, shareholders' meeting. Hopefully, we will have the detailed plan at that time.
It will be the end of April. That's the current plan, and hopefully, every shareholder will continuously support us and allow us to grow the company together.
Yeah, yeah, of course.
Do we have any questions from the audience?
Yeah. Okay. So my next question is more kind of macro-related question about biotech funding, because I think a consistent kind of theme from this conference presented by quite a few other CEOs or companies seems to be biotech funding suggests there's a better recovery. And have we seen such recovery in terms of our interaction with smaller biotech companies? And how do we think such funding recovery will help our kind of especially early-stage business moving forward?
Yeah. So, as Minzhang already said, first of all, our early-stage business providing an integrated capability across chemistry, biology, and preclinical science, we have seen a rebound, particularly a rebound of the biotech sector. Now, the rebound and the demand we see do vary region by region. But overall, the trend is very healthy if we compare the second half of last year versus the first half of last year. So there is a clear momentum. And obviously, within the early stage, there is discovery and the preclinical, and the rebound magnitude and dynamic are slightly different. But overall, it's a positive trend.
Okay, great. Great to hear. And I think another important theme of the conference is the application of AI in healthcare. And I also want to understand how management thinks about how AI's use could drive or how to impact the overall CDMO industry.
Maybe Steve will start.
Yeah, well, I think AI is very exciting. I will probably address your question on the broader question that including AI and other digitization tools, we is an enabler, so we're always excited about the new technology that could enable serve customers better, and we see digitization, automation are tremendously enabling internally to increasing efficiency, shorten cycle time while maintaining speed, maintaining high quality, and the specific use case we have seen is not only on the manufacturing side. We're using digital tools to actually schedule reactions, and then in preclinical science, we are widely using digitization tools, software, hardware to actually manage our workflow and scheduling animal room and studies, and then in early stage, we have also used AI to assist some experiments, including helping customers design proteins and so on and so forth. Fundamentally, we don't believe AI will replace humans' creativity.
So we envision it's HI, which is human intelligence plus AI. And then we benefit of a strong combination of those skills and deliveries. And also the accumulated data, operation data allow us to learn from the past.
Okay, great.
And maybe time for one last question. Any questions from the audience? Oh, here.
Are you building the most capacity outside of peptides anywhere? And are you seeing any biotech rebound in any particular area besides peptides?
Can you repeat the question?
Maybe.
Yeah, I will repeat the question. Or you want to ask again?
Yeah. Where are you seeing the biotech rebound in your portfolio besides peptides? And where else are you building capacity besides peptides, if anywhere? Or mostly focusing on peptides?
We expanded in peptide, of course, and oligonucleotide, and also small molecule. Yeah. That's basically the synthetic modalities that we focus on. We all see the continued growing demand.
Okay. I guess that's a wrap. And thank you for joining this first session. And hope you have a good day going ahead.
Thank you.