# Wuxi AppTec's 2025 Net Profit Doubles: Asset Disposal Boosts Earnings, How Strong is Core Business Growth? | Financial Report Analysis

WuXi AppTec’s profits doubled, asset disposal gains are high, is the growth of its core business sustainable?

Cailian Press, March 23 (Reporter Lu Afeng) WuXi AppTec (603259.SH, 02359.HK), a leading CXO company, reported a “doubling of profits” for 2025. Analyzing its growth structure, profit growth significantly outpaced core business expansion, with asset disposals and investment income becoming important variables. The “value” of core business growth is more reflected in orders and cash flow.

The annual report shows that in 2025, the company achieved operating revenue of 45.456 billion yuan, a year-on-year increase of 15.8%; net profit attributable to shareholders was 19.151 billion yuan, up 102.65%; and adjusted Non-IFRS net profit attributable to shareholders was 14.957 billion yuan, up 41.3%. Cash flow performance also improved in tandem. The company’s adjusted operating cash flow reached 16.67 billion yuan, a 39.1% increase.

While profits surged, the proportion of non-recurring gains increased significantly. According to the Hong Kong stock financial report, other income and gains reached 6.931 billion yuan in 2025, sharply higher than 804 million yuan the previous year, mainly due to gains from the sale of partial equity in joint venture WuXi XDC Cayman Inc. and the divestment of some businesses, further boosting the company’s profits.

Against this backdrop, the growth of core business is relatively more meaningful. In 2025, the company’s continuing operations revenue was 43.42 billion yuan, up 21.4%, outpacing overall revenue growth; on-hand orders reached 58 billion yuan, up 28.8%.

Looking at the business structure, growth is still mainly driven by the chemical business (WuXi Chemistry). In 2025, this segment achieved revenue of 36.47 billion yuan, up 25.5%; testing and biology businesses grew by 4.7% and 5.2%, respectively. Notably, small molecule CRDMO remains expanding. The company added 839 molecules throughout the year, converting 310 molecules from R&D to D, bringing the pipeline total to 3,452 molecules, with ongoing commercialization and late-stage projects increasing.

The new molecule sector continues high growth. TIDES (oligonucleotides and peptides) business revenue for the year was 11.37 billion yuan, up 96.0%, with customer numbers and molecules increasing by 25% and 45%, respectively, indicating demand and project pipeline expansion are synchronized.

However, some business segments are facing marginal pressure. The company disclosed that gross margins for testing and biology businesses declined due to pricing factors, reflecting the impact of industry competition and demand structure changes on profitability.

Regionally, growth still mainly depends on the U.S. market. In 2025, revenue from U.S. clients increased by 34.3% year-on-year, while revenue from Europe and China declined.

WuXi AppTec remains confident about its 2026 performance. In its outlook for 2026, the company expects total revenue to reach 51.3-53 billion yuan, with continuing operations revenue growing 18%-22% year-on-year; capital expenditures are projected to be 6.5-7.5 billion yuan. With business growth and efficiency improvements, adjusted free cash flow is expected to reach 10.5-11.5 billion yuan.

Additionally, WuXi AppTec plans to distribute a total cash dividend of 5.71 billion yuan in 2026, setting a new record high; the company also intends to launch a 2026 H-share reward trust plan. When the company’s overall revenue reaches 51.3 billion yuan, up to 1.5 billion HKD worth of H-shares will be granted, and if revenue reaches 53 billion yuan or more, an additional 1 billion HKD worth of H-shares will be granted. These H-shares will be purchased by the company through market transactions at current market prices, without diluting existing shareholders’ equity.

(Cailian Press, Reporter Lu Afeng)