WuXi AppTec's annual profit reaches 19.2 billion, with investment income of 8.6 billion. The order backlog is full, aiming for 53 billion in revenue by 2026.

Yangtze River Business Daily reporter Shen Yourong

CRO leader WuXi AppTec (603259.SH, 02359.HK) delivered a major profit.

On the evening of March 23, WuXi AppTec released its 2025 annual report. Over the past year, WuXi AppTec achieved operating revenue of RMB 45.456 billion, up nearly 16% year over year; net profit attributable to shareholders was RMB 19.151 billion, doubling year over year.

WuXi AppTec’s sharp increase in profit comes from two major factors. First, the company has continued to focus on and strengthen the CRDMO business model, optimize production processes and operating efficiency, and improve capacity utilization; second, selling shares in its joint venture, WuXi United Pharma, generated substantial investment gains.

In 2025, WuXi AppTec’s net investment gains totaled as much as RMB 8.588 billion.

What draws particular attention is the overseas market. In 2025, WuXi AppTec’s revenue from customers from the United States was RMB 31.25 billion, up 34.3%, which became the company’s main driver for growth in operating revenue.

WuXi AppTec’s market competitiveness is relatively strong. The company is one of the very few open R&D service platforms in the industry that provides services across the entire new-drug R&D industrial chain. Based on this, the company has established cooperation with the world’s top 20 pharmaceutical companies, and its customer stickiness is strong.

What is surprising is that WuXi AppTec’s R&D investment has shrunk. The company’s R&D spending has declined for three consecutive years, and its R&D personnel have also been reduced significantly.

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Net profit doubled; both A- and H-share stocks rose sharply

WuXi AppTec achieved record-high annual performance.

According to the annual report, in 2025 WuXi AppTec achieved operating revenue of RMB 45.456 billion, up 15.84% year over year; net profit attributable to shareholders was RMB 19.151 billion, up 102.65% year over year.

In 2025, WuXi AppTec had the best operating performance in its history.

Historical data show that in 2019, WuXi AppTec’s operating revenue first broke through the RMB 10 billion threshold, reaching RMB 12.872 billion. After years of uninterrupted growth, by 2023 the company’s operating revenue surpassed the RMB 40 billion threshold, reaching RMB 40.341 billion; after net profit attributable to shareholders fell 17.96% in 2019 to RMB 1.856 billion, it continued to grow, reaching RMB 9.607 billion in 2023. However, in 2023, the year-on-year growth rate of operating revenue sharply slowed from 71.84% in 2022 to 2.51%, and the year-on-year growth rate of net profit attributable to shareholders also slowed from 72.91% in 2022 to 9%.

In 2024, WuXi AppTec experienced a historic double decline in both revenue and net profit: operating revenue and net profit attributable to shareholders were RMB 39.241 billion and RMB 9.450 billion, respectively, down 2.73% and 1.63% year over year.

According to disclosures made by WuXi AppTec at the time, in 2023, commercialized COVID-related projects formed a high base; the company accelerated strategic adjustments, and during the year completed the sale of its U.S. and U.K. cell therapy business and its U.S. medical device testing business. The related revenue was recorded under “discontinued operations,” which led to lower revenue and reduced profit. In addition, WuXi AppTec was also affected by geopolitical risk; some U.S. and Europe customers became cautious about placing orders or sought diversification of their supply chains, directly affecting WuXi AppTec’s revenue from customers from the United States.

So why could WuXi AppTec’s operating performance explode with growth in 2025? The company explained that it has continued to focus on and strengthen the CRDMO business model—operating revenue has continued to grow. At the same time, it has continued to optimize production processes and operating efficiency, and capacity efficiency has been continuously improving as a result of growth from late-stage clinical and commercialization projects, thereby improving overall profitability. In addition, the company sold shares of its joint venture, WuXi United, and spun off some businesses, generating substantial gains.

In 2025, WuXi AppTec’s net investment gains reached RMB 8.588 billion.

Of course, WuXi AppTec’s main business profitability has indeed improved. In 2025, the company’s non-GAAP net profit was RMB 13.241 billion, up 32.56%, which further supports the rapid growth.

What draws attention is that the offshore market has clearly shown signs of recovery. In 2025, WuXi AppTec’s continuing operations revenue was RMB 43.42 billion, including revenue from customers from the United States of RMB 31.25 billion, up 34.3%; revenue from customers in Europe of RMB 4.82 billion, down 4.0% year over year; revenue from customers in China of RMB 5.47 billion, down 3.5% year over year; and revenue from customers in other regions of RMB 1.88 billion, up 4.1%.

In the secondary market, driven by strong earnings, on March 24 both WuXi AppTec’s A shares and H shares surged, with gains of 6.71% and 10.61%, respectively.

Dividend and buyback amount hits RMB 8.755 billion, a new high

With WuXi AppTec’s operating performance growing significantly, it has increased its efforts to reward shareholders.

Based on information disclosed in the annual report, in 2025 WuXi AppTec’s operating performance growth was healthy. In that year, the company’s net operating cash flow was RMB 17.203 billion, up 38.66%. At period-end, accounts receivable were RMB 7.263 billion, down from RMB 7.952 billion in the same period of the prior year.

Inventories affect net operating cash flow. At the end of 2025, the company’s inventories were RMB 8.993 billion, up 66.55%. With inventories surging, the company explained that this was mainly because, as the business continued to develop, orders in hand increased, leading to corresponding growth in inventories of raw materials and finished goods.

In its financial report disclosures, as of the end of 2025, WuXi AppTec’s continuing operations orders in hand were RMB 58.0 billion, up 28.8% year over year.

Based on orders in hand, WuXi AppTec expects that in 2026, the company’s overall revenue will reach RMB 51.3–530 million?—overall: 513–530 billion? (Continue precisely as source next line) 513–530 billion, and continuing operations revenue will grow 18%–22% year over year.

WuXi AppTec stated that the company will place even greater focus on the CRDMO core strategy, accelerate the development of global capabilities and capacity deployment, and continue to enhance production and operating efficiency.

WuXi AppTec is accelerating global layout and capacity construction, continuously improving both capability and scale. The annual report shows that in 2025, the company continued to advance construction of small-molecule capacity. Its API bases in Changzhou, Taixing, and Jinshan all successfully passed FDA on-site inspections with zero defects. By the end of 2025, the overall volume of small-molecule API reaction vessels had been increased to more than 4,000 kL. In September 2025, the company completed the Taixing peptide capacity construction ahead of schedule; the total volume of its peptide solid-phase synthesis reaction vessels had been increased to more than 100,000 L.

In 2025, WuXi AppTec increased its efforts to reward shareholders. In 2025, the company planned an interim dividend of approximately RMB 1.0 billion, and would distribute special dividends of approximately RMB 1.0 billion. The company’s planned annual dividend was RMB 4.712 billion. Together with the amount for share repurchase and cancellation, the total reached RMB 8.755 billion, accounting for 45.72% of the net profit attributable to shareholders for the year. Both the absolute figure and the percentage hit historical record highs.

It is also worth noting that WuXi AppTec has some unusual aspects that have drawn market attention. At the end of 2025, the company’s R&D personnel were about 26,000, accounting for 76.80% of the total number of employees. In 2024, the figures and proportions were 31,800 and 80.70%, respectively. A comparison shows that within one year, the company had 5,836 fewer R&D personnel, representing a decrease of 18.34%.

WuXi AppTec’s R&D spending has continued to shrink. In 2022, the company’s R&D expenditure was RMB 1.614 billion. From 2023 to 2025, it was RMB 1.441 billion, RMB 1.239 billion, and RMB 1.119 billion, respectively—declining for three consecutive years.

By cutting back on R&D, what is WuXi AppTec’s starting point? In the future, can the company maintain its leading position?

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