WuXi XDC Cayman (2268) H1 2024 earnings summary

Executive summary

• Revenue grew 67.6% year-over-year to RMB1,665.2 million for the six months ended June 30, 2024, driven by increased customer base, robust demand, and project advancement.

• Net profit rose 175.5% year-over-year to RMB488.2 million, with adjusted net profit up 146.6% to RMB533.6 million, reflecting strong operational leverage and margin expansion.

• Gross profit margin improved to 32.1% from 23.1% year-over-year, supported by higher facility utilization and operational efficiency.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 133.4% year-over-year to RMB535.3 million.

• Adjusted EBITDA rose 103.9% to RMB551.6 million, with margin up to 33.1%.

• Basic earnings per share increased 127.8% to RMB0.41; diluted EPS up 123.5% to RMB0.38.

• Cost of sales rose 47.9% to RMB1,129.9 million, in line with revenue growth.

• Other income surged 244.7% to RMB136.4 million, mainly from higher bank interest income.

Outlook and guidance

• Expansion of Wuxi and Singapore facilities is on track, with new production lines expected to commence in late 2024 and 2025.

• The company aims to leverage its integrated platform, proprietary technologies, and invest in R&D and strategic partnerships to maintain industry leadership.

• The global ADC drug market is projected to grow at a 30% CAGR through 2030, providing strong tailwinds.