WuXi AppTec Co., Ltd.

Good morning, and good evening, global investors. Thank you for joining Wuxi App Tech's first quarter 2025 earnings call. This is Li Chen, China healthcare analyst at Goldman Sachs. Before we kick off the session, I would like to highlight that this call is strictly for clients at Goldman Sachs and Wuxi App Tech only, and this conversation is not intended for the media, and it's up the record. Participants will be removed from the call if they cannot be properly identified, and this call is not for the purpose of sharing or receiving non-public, otherwise confidential information. attendees are public-side market participants who may not receive an additional request, non-public or otherwise confidential information about issuers or securities or about the market's securities. We have exposed very strong results overnight, and today we are very honored to have the whole management team attending the call to share their insights and business updates with global investors. Attending today's call, including the co-CEO, Mingzhang Chen, co-CEO, Steve Yang, CFO Florence Shi, General Counsel Howard Wu, Board Secretary Yuan Zhou Zhang, and also our director, Ray Jia Tang. We're going to have the management to share with us their prepared remarks on earnings first. Then we're going to turn to Q&A session. For Q&As, if you have any questions, feel free to raise your hand in Zoom app or type a question into the Q&A box. Now, without further ado, I'm going to turn the call to the management to get started.

Okay, thank you, Zee, and thank you to all the investors and analysts for joining today's earnings call. We're sharing our 2025 first quarterly results presentation, which you can also find on our website. During today's call, we will make forward-looking statements. Although we believe that our predictions are reasonable, future events are uncertain, and our forward-looking statements may turn out to be incorrect. Accordingly, you are strongly cautioned that reliance on any forward-looking statements involves unknown risks and uncertainties. In addition to supplement the company's consolidated financial statements presented in accordance with IFRS, we provide adjusted IFRS financial data. We believe the adjusted financial measures are useful for understanding and assessing our core business performance, and we believe that investors may benefit from referring to these adjusted financial measures by eliminating the impact of certain unusual and non-recurring items that are not indicative of the performance of our core business. However, these adjusted measures are not intended to be considered in isolation or as a substitute for the financial information under IFRS. All IP rights and other rights pertaining to the information and the materials presented are owned by WUSHI APTEC. Audio recording, video recording, or disclosure of such materials by any means without the prior consent of WUSHI APTEC is prohibited. This call does not intend to provide a complete statement of relevant matters. For relevant information, please refer to the company's disclosure documents and information on the Shanghai Stock Exchange, the Stock Exchange of Hong Kong Limited, and the company's website. In today's call, there will be Q&A session after our presentation. Please kindly share with us your name and institution before asking questions. With that, please allow me to introduce our co-CEO, Dr. Mingzhang Chen, to present our 2025 first quarterly results. Mingzhang, please.

Thanks, Rika. Good morning and good evening, everyone. Thank you for joining our 2025 first quarterly earnings release call. We will begin on slide five. In the first quarter of 2025, our revenue and the profit resumed double-digit growth. The revenue from continuing operations grew 23.1% year-over-year to 9.39 billion RMB. The company's total revenue achieved 9.65 billion RMB. representing a 21% year-over-year growth. The adjusted non-IFRS net profit grew 40% year-over-year to 2.68 billion RMB. By the end of March, we achieved a record backlog for continuing operations of 52.33 billion RMB, growing 47.1% year-over-year. Slide six. shows our revenue contributions from customers worldwide. Revenue by region is based on the country or region where our customer's parent company is located, of which revenue generated from the US market grew 28.4% year-over-year. Revenue from Europe grew 26.2% year-over-year. Revenue from Japan, Korea, and other regions grew 3.0% year-over-year, and China showed a slight decline. These diversified revenue streams demonstrate our global footprint and capabilities to enable healthcare innovations, which will also ensure the stability and resilience of our financial performance. Now let's move on to the segment performance. Please turn to page 8. A Wuxi Chemistry CRDMO business model drives continuous growth. In the first quarter, Wuxi Chemistry revenue grew 32.9% year-over-year to 7.39 billion RMB, with continued optimization of production process and improvement in capacity efficiency driven by the growth of late-stage clinical, and commercial projects. First quarter adjusted non-IFRS gross profit margin improved 4.2 percentage point year-over-year to 47.5 percent. Our small molecule drug discovery business continues to generate downstream opportunities. In the past 12 months, we have successfully synthesized and delivered over 460,000 new compounds to customers. an increase of 6% year-over-year, which reflects the continued increase in the industry's early stage R&D and demand for highly efficient services. Meanwhile, as we continue to strengthen the capabilities of our integrated CRDMO platform, we consistently enhance the internal conversion of molecules at different stage as a result. 75 molecules were converted from R to D in the first quarter. Our small molecule D&M business remains strong, and the small molecule CDMO pipeline continues to expand. In the first quarter, small molecule D&M business revenue grew 13.8% year-over-year to 3.85 billion RMB. Meanwhile, the company continued to build small molecule capacity In March, both our Changzhou and Taixing API manufacturing sites successfully passed FDA inspections with no single observation. The total react volume of small molecule APIs is expected to reach over 4 million liters by end of this year. Wuxi Tides, our new modality business, sustains rapid growth with a ramp-up of new capacities released sequentially each quarter last year, Wuxi Tide achieved 2.24 billion RMB revenue in the first quarter, representing a strong growth of 187.6% year-over-year, while remaining relatively flat compared to the fourth quarter of last year. By the end of March, Tide's backlog grew 105.5% year-over-year. The number of Tide's D&M customers increased 14% while a number of TICE DNM molecules increased 25%. We continue to build peptide capacity in Taixin. The total react volume of solid-phase peptide synthesizer is expected to increase to over 100,000 liter by end of this year. Next page, please. Our small molecule pipeline continues to grow, driven by a combination of follow the molecule and win the molecule strategies. This growing pipeline is a demonstration to our customers' full confidence in our technical capabilities, service efficiency, and the quality system. In the first quarter, the number of our small molecule CRDMO pipeline in the R, D, and M stages increased by 6%, 3%, and 17%, respectively. In our stage, we delivered more than 460,000 new compounds in the past 12 months. In DNM stage, we added 203 molecules to our pipeline in the first quarter, including 75 molecules converted from R to D. Currently, our small molecule DNM pipeline has a total of 3,393 molecules, including 75 commercial products, 82 Phase III, 368 phase two, and 2,868 in phase one and preclinical, with an increase of five projects in the commercial and phase three stage during the first quarter. Now I will hand over to co-CEO Dr. Steve Yang to talk about Wuxi testing and Wuxi biology. Steve, please.