The decline in net profit was mainly due to the decrease in fair value gains of portfolio companies.
On March 24, WuXi AppTec (02359.HK) Hong Kong stocks released the 2019 annual results report. Data show that WuXi AppTec’s revenue in 2019 was 12.872 billion yuan (RMB, the same below), a year-on-year increase of 33.9%.
Mapping; data source: financial report
In 2019, WuXi AppTec’s net profit attributable to shareholders of listed companies was 1.854 billion yuan, a decrease of 18% year-on-year, mainly due to the decrease in fair value gains of investment targets such as Unity and Hualing. According to the financial report, the fair value of the company’s non-current financial assets decreased by approximately 796 million yuan, mainly due to the decline in the stock prices of companies such as the portfolio company Unity and Hualing .
WuXi PharmaTech is a small-molecule pharmaceutical R & D service company, which mainly provides R & D, production and supporting services for various new drugs to global pharmaceutical companies. It is one of the top 10 CRO (R & D outsourcing) companies in China. The company was listed on the New York Stock Exchange in 2007 and completed the privatization return at the end of 2015. At present, it has established a dual platform of “A + H” shares.
WuXi AppTec’s four business segments are laboratory services in China, CDMO / CMO (contract development and production / contract production) services, laboratory services in the US and clinical research and other CRO services.
During the reporting period, WuXi PharmaTech promoted the strategy of “following the development of the project” to “following the development of drug molecules”, and obtained more projects in the late clinical and commercial stages. During the period, CDMO /CMO Service revenue was 3.752 billion yuan, a year-on-year increase of 39%. During the reporting period, the CDMO / CMO pipeline for small molecule drugs has developed to about 1,000 active projects, of which 40 are in phase III and 21 are in commercial production .
YuXi AppTec’s clinical research and other CRO services revenue was 1.063 billion yuan, a year-on-year increase of 81.8%, and the fastest growth rate among all business segments. WuXi AppTec said this was mainly due to the increase in the number of customers and contracts. During the period, the company ’s customer base for clinical research services grew 34.8%, and the number of cities and hospitals covered by SMO services increased by 21.6% and 17.6%, respectively. WuXi AppTec is also continuing to promote the global network layout and the construction of clinical centers. In May 2019, it acquired the clinical research service company Pharmapace, Inc ..
In 2019, WuXi AppTec China’s experimental service revenue in China was 6.473 billion yuan, an increase of 26.6% year-on-year, and it accounted for the highest proportion among various businesses, at 50.29%. During the reporting period, the company completed IND work for 30 small molecule innovative drug projects for domestic customers , and obtained clinical trials for 23 projects Application (CTA).
As of December 31, 2019, the company has completed the IND application for 85 innovative drug projects for domestic pharmaceutical companies, and obtained 57 clinical trial approvals, of which 1 project is in the third stage In clinical trials, 6 projects are in Phase 2 clinical trials, and 38 projects are in Phase 1 clinical trials.
In addition, the company’s US laboratory services revenue was 1.563 billion yuan, a year-on-year increase of 29.8%. U.S. laboratory services include cell and gene therapy CDMO services, and medical device testing services.
During the reporting period, while serving the existing customer base, WuXi PharmaTech strengthened the development of new customer bases, adding over 1200 new customers and over 3900 active customers.
In addition, WuXi AppTec’s R & D expenses in the current period were 590 million yuan, an increase of 35.2% year-on-year, accounting for 4.58% of total revenue, which was almost the same as the 4.54% of 2018.
The impact of the global new crown epidemic ( COVID-19 ) on the company, Wu Mingkang Chairman and Chief Executive Officer Executive Officer Li Ge said: “ The COVID-19 epidemic has caused the company to miss out about one month of operating time in China, mainly because the operation of the company’s Wuhan R & D center has been greatly affected. Most hospitals suspended clinical surveillance visits and patient enrollment during the outbreak, and the company ’s clinical trial services business was also affected to a certain extent. ”
In addition, Li Ge said that with the consent of customers, the company transferred some emergency projects in Wuhan R & D center to the company’s R & D centers in Shanghai, Tianjin and Nantong. At present, WuXi PharmaTech’s R & D and production base in China has been fully resumed.