On March 23, Wuxi Apptec Co.Ltd(603259) ( Wuxi Apptec Co.Ltd(603259) , SH) released its annual performance report, saying that the operating revenue in 2021 was about 22.902 billion yuan, an increase of 38.5% year-on-year; The net profit attributable to shareholders of listed companies was about 5.097 billion yuan, a year-on-year increase of 72.19%.
Wuxi Apptec Co.Ltd(603259) said that the company has always implemented the strategy of “following the molecules”. The integrated chemical business (Wuxi Chemistry) sector has continued to build an “integrated, end-to-end” crdmo (contract research, development and production) business. The strong demand for orders has promoted the accelerated growth of the company’s annual sales revenue in 2021.
In addition, investment income and asset disposal income also have a great impact on the net profit of Wuxi Apptec Co.Ltd(603259) 2021.
several major businesses achieved high growth
In 2021, Wuxi Apptec Co.Ltd(603259) ‘s chemical business realized a revenue of about 14.1 billion yuan, a year-on-year increase of 46.93%; The revenue from testing business was about 4.5 billion yuan, a year-on-year increase of 38.03%; The revenue of biology business was about 2 billion yuan, with a year-on-year increase of 30.05%; The ctdmo business of cell and gene therapy realized a revenue of about 1 billion yuan, a year-on-year decrease of 2.79%; The revenue of China’s new drug R & D service department was about 1.25 billion yuan, a year-on-year increase of 17.47%p align=”center” style=”text-align:center;”> Image source: Wuxi Apptec Co.Ltd(603259) 2021 annual report screenshot
As the core business of Wuxi Apptec Co.Ltd(603259) , the chemical business contributed about RMB 14.1 billion to Wuxi Apptec Co.Ltd(603259) in 2021. Among them, the service revenue of small molecule drug discovery (R) was about 6.2 billion yuan, a year-on-year increase of 43.24%; The service revenue of process R & D and production (DM) was about 7.9 billion yuan, a year-on-year increase of 49.94%.
Wuxi Apptec Co.Ltd(603259) said that the company gave full play to the technological advantages of process development and firmly promoted the strategy of “following molecules”. In terms of small molecule drug discovery (R) services, the company completed the synthesis of more than 310000 new compounds in 2021, enabling early small molecule new drug R & D customers and becoming an important “flow inlet” for the company’s downstream business departments.
The revenue contributed to the testing business exceeded 4.5 billion yuan, of which the revenue from laboratory analysis and testing services exceeded 3 billion yuan, a year-on-year increase of 38.93%; The revenue of clinical cro and SMO was about 1.5 billion yuan, with a year-on-year increase of 36.20% Wuxi Apptec Co.Ltd(603259) said that in 2021, 149 service projects were signed on the wind platform, a year-on-year increase of 49% compared with 100 projects in 2020.
Looking forward to 2022, Wuxi Apptec Co.Ltd(603259) said that it is expected that the revenue growth of the chemical business segment in 2022 will nearly double that of 2021; The prediction for the testing business segment and the biology business segment is “will continue the momentum in recent years”; It is estimated that the growth of ctdmo business revenue of cell and gene therapy in 2022 is expected to exceed the growth rate of the industry; It is expected that the revenue of China’s new drug R & D service department will decline to a certain extent in 2022.
investment and asset disposal also have a great impact on net profit
From the perspective of gross profit, in 2021, Wuxi Apptec Co.Ltd(603259) main business gross profit margin was 36.27%, down 1.7 percentage points from the same period of last year. For the reasons, Wuxi Apptec Co.Ltd(603259) said: “the negative impact of the sharp depreciation of the US dollar against the RMB in 2021 over the same period last year on the company’s revenue and gross profit; the rise in the price of raw materials caused by the rise in the price of bulk materials; and the impact of the exemption of social security expenses during the epidemic period in China last year.”
It is worth noting that although the gross profit margin of Wuxi Apptec Co.Ltd(603259) has decreased, its cost control is relatively good. In 2021, Wuxi Apptec Co.Ltd(603259) the growth rate of sales expenses, management expenses, R & D expenses and financial expenses was lower than that of its operating revenue.
In particular, the financial expenses of Wuxi Apptec Co.Ltd(603259) in 2021 were only about 80 million yuan, a year-on-year decrease of 83.82% Wuxi Apptec Co.Ltd(603259) said that it was mainly due to the increase of large certificates of deposit purchased by the company during the reporting period and the corresponding increase of interest income. At the same time, the appreciation of RMB against the US dollar slowed down compared with the same period of last year, and the corresponding exchange loss decreased compared with the same period of last year.
In addition to cost control, investment income and asset disposal also contribute greatly to the profits of Wuxi Apptec Co.Ltd(603259) . In 2021, the investment income of Wuxi Apptec Co.Ltd(603259) was about 1.356 billion yuan, an increase of about 750 million yuan over the previous year; The income from asset disposal was about 264 million yuan, an increase of about 272 million yuan over the negative income of the previous yearp align=”center” style=”text-align:center;”> Image source: Wuxi Apptec Co.Ltd(603259) 2021 annual report screenshot
In response to the changes in investment income, Wuxi Apptec Co.Ltd(603259) explained that it was mainly due to the year-on-year increase in the company’s income from the disposal of other non current financial assets during the reporting period. As for what constitutes “other non current financial assets”, Wuxi Apptec Co.Ltd(603259) disclosed: “the equity of listed companies and other non listed target interests held by the company are other non current financial assets measured at fair value, and their value is greatly affected by market fluctuations.”
By the end of 2021, Wuxi Apptec Co.Ltd(603259) had a balance of about 8.7 billion yuan in “other non current financial assets”, including about 2.1 billion yuan in listed shares, about 800 million yuan in unlisted funds and about 5.8 billion yuan in unlisted sharesp align=”center” style=”text-align:center;”> Image source: Wuxi Apptec Co.Ltd(603259) 2021 annual report screenshot
Wuxi Apptec Co.Ltd(603259) means: “The company pays close attention to the stock price trend of the invested listed companies in order to make investment decisions on such investments in time. Since the company regularly recognizes the value of relevant investments according to the market fair value, the company expects that the fair value of this part of assets measured by the fair value held by the company, especially the value of the shares of the listed company held by the company, may change significantly due to the drastic fluctuations of the market, which may lead to the net profit of the company The company’s performance will be affected to a certain extent by the sharp fluctuation of the company. “
In addition, for the change of profit and loss on asset disposal, Wuxi Apptec Co.Ltd(603259) said that it was mainly due to the sale of small molecule toxin molecules and connecting sub businesses by the subsidiary Changzhou Hequan Pharmaceutical Co., Ltd. to Changzhou Yaoming United Biotechnology Co., Ltd. during the reporting period.
