WuXi AppTec Co., Ltd.

Hi, good morning, everyone. For those who are based in China and Hong Kong, and good evening for those based in the U.S. This is the 2025 Wuxi Aptec results call. My name is Lawrence Tam. I'm a China healthcare analyst at Morgan Stanley. We're honored today to have the full team from Wuxi Aptec to present the 2025 results in English. The format of the call will be two parts. First, I'll let management go through their prepared remarks. You can refer to the slides on the webcast. And then the second part will be a Q&A session. To ask questions, simply open the link that was sent to you during the registration. And you can type your questions into the Q&A box at the bottom of the window. You can also send me your questions at the following email, lawrence, L-A-U-R-E-N-C-E, .T-A-M, at morgansandlee.com. And I'll repeat your questions to management. With that, let me now pass it on to the head of IR at Wuxi App Tech, Ms. Tang Rui-Chiang, to introduce management and to start the prepared remarks. I'll pass it on to you, Rui-Chiang.

Okay. Thank you, Lawrence. Welcome, everyone, to Wuxi App Tech's 2025 Annual Results Conference Call. We released our financial results last night and have posted the latest on our company 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 known and 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 materials presented are owned by Wu Shabtac. Audio recording, video recording, or disclosure of such materials by any means without the prior consent of Wu Shabtac 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 Shanghai Stock Exchange, Hong Kong Stock Exchange, and the company's website. As usual, 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 annual results. Mingzhang, please.

Thanks, Rika. Good morning and good evening. Thank you for joining our 2025 Annual Earnings Call. We will begin on slide number five. In 2025, we tapped and beat full-year guidance and achieved a record performance in both revenue and the profit. Total revenue achieved 45.46 billion RMB. Notably, revenue from continuing operations grew 21.4% year-over-year to reach 43.42 billion RMB. Our adjusted non-IFRS net profit grew 41.3% year-over-year to 14.96 billion RMB. With non-IFRS net profit margin further improved 5.9 percentage points year over year to 32.9%. Next slide, please. The company remains focused on enhancing our core capabilities and the capacity to better meet customer demand. With continuous capacity expansion by end of 2025, our backlog for continuing operations reached 58 billion RMB. growing 28.8% year over year. This does not include business operations we sold or discontinued, such as clinical research services. Next slide, please. Slide seven shows our diversified revenue streams of continuing operations. Based on customer headquarters, revenue generated from U.S. market grew 34.3% year over year. Japan, Korea, and other regions grew 4.1%. Europe and China saw some decline, mainly due to fluctuations in project delivery timing. This diversified revenue structure reflects our global footprint and the capabilities to enable healthcare innovations. We believe it will continue to underpin the stability and the resilience of our performance. Slide eight, please. So as an enabler of innovation and trusted partner and a contributor to the global pharmaceutical and the life science industry, the company continues to drive sustainability, embrace initiatives with sustained recognition by leading global ratings. In 2025, we achieved our first MSCI AAA and CDP climate change A ratings. maintained CDP water security and the Ecovirus gold ratings and were included in the SMP global sustainability yearbook for the fourth consecutive year. And meanwhile our near-term greenhouse gas emissions reduction targets have been successfully validated by SBTI. As a committed the UNGC participant and the PSCI supplier partner, we actively embrace global initiatives and are dedicated to integrating sustainability into our business strategy and operations. Next slide, please. For over two decades, WCF Tech has remained steadfast in our commitment to safeguarding customers' IP and adhering to the highest standards for quality and compliance. In 2025, we completed 741 quality audits and inspections from global customers, regulatory authorities, and independent third parties, as well as 60 information security audits by global customers. This means, on average, we welcome three quality audits per day and over one information security audit per week, all with no critical findings. Currently, 20 of our main sites are ISO and IEC 27001 certified covering all main sites in China. IP is the lifeline for both our company and our customers. We uphold integrity as our foundation and enforce zero tolerance policy against any infringement. This is our core value and our highest responsibility and commitment to our customers. Now, let's move on to the segment of performance. So, please turn to page nine. WC Chemistry's CRVMO business model drives continuous growth. In 2025, WC Chemistry revenue grew 25.5% year-over-year to 36.47 billion RMB, benefiting from continued process optimization and enhanced capacity efficiency driven by the growth of late-stage clinical and commercial products. Our adjusted now IFRS gross profit margin steadily improved 5.9 percentage points year-over-year, reaching 52.3%. Our small molecule drug discovery, our business, continues to generate downstream opportunities. In 2025, we have successfully synthesized and delivered over 420,000 new compounds to our customers. And meanwhile, 310 molecules were converted from R to D in 2022. As we continue to strengthen the capabilities of our integrated CRDMO platform, we consistently enhance the internal conversion of molecules at different stages. Our small molecule DNM business remains strong. and the small molecule CDM pipeline continued to expand. In 2025, small molecule DNM business revenue grew 11.4% year-over-year to 19.92 billion RMB. Meanwhile, the company continued to build small molecule capacity. In 2025, our Changzhou, Haixing, and the Jinshan API sites all successfully passed FDA on-site inspections with no single observation. By year end, total reactor volume of small molecule APIs reached over 4,000 cubic meters. Wichita Heights, our pneumatologist business, sustains rapid growth with a sequential ramp-up of new capacity released in 2024 and 2025. Thais revenue almost doubled to reach 11.37 billion RMB in 2025. As of year end, Thais backlog grew 20.2% year-over-year. Thais D&M customers increased 25% year-over-year. And its number of molecules increased 45% year-over-year. In September 2025, we completed testing peptide capacity construction ahead of schedule. The company's total reactive volume of solid-phase peptide synthesizer has reached over 100,000 liters. Next page, please. So, driven by following the molecule and win the molecule strategies, WC Chemistry's small molecule CRDM pipeline efficiently converts and captures high-quality molecules and delivering sustained business growth. This reflects our customers' strong trust in our technical capabilities, our service efficiency, and our quality system. In our stage, we delivered more than 420,000 new compounds in 2025. representing a significant scale. At the same time, the complexity of these molecules continue to increase, demonstrating the sustained demand from early stage R&D customers for high quality services. Building on this strong foundation, we continue to enhance the synergy between our R and the D capabilities by strengthening the conversion of molecules from R to D The new compound synthesizing R stage served as a continuous funnel driving downstream demand for our DNM services. Moving to the DNM stage, we added 839 molecules to our pipeline in 2025 with 310 of them converted from R to B. As of year end, our small molecule DNM pipeline reached 3,452 molecules, including 53 commercial projects, 91 in phase three, 377 in phase two, and 2,901 in phase one and the preclinical. Notably, commercial and the phase three projects increased by 22. As our late-stage pipeline grows, the complexity and the quality of the molecules continue to grow. This depends our collaboration with customers and the least solid foundations for sustained long-term growth. The next page, please. Our Tides business has maintained a rapid growth over the past few years. So in 2025, Tides revenue grew a strong 96% year over year. to reach 11.37 billion RMB, nearly doubled. We have been continuously enhancing our capabilities and capacity to better meet customer demand. Now I will hand over to our co-CEO, Dr. Steve Yang, to talk about Wuxi testing and Wuxi biology. Steve, please.