According to the performance report released by WuXi AppTec for the first half of 2024, the company achieved a revenue of approximately 17.241 billion yuan, a year-on-year decrease of 8.64%; The corresponding attributable net profit was approximately 4.24 billion yuan, a year-on-year decrease of 20.2%; The corresponding net profit after deducting non recurring expenses was approximately 4.414 billion yuan, a year-on-year decrease of 8.33%.

 

 

 

It is worth noting that WuXi AppTec, whose main revenue relies on overseas customers, experienced a decline in revenue from US customers during the reporting period, reaching 10.71 billion yuan, with a year-on-year decrease of 1.2% excluding specific commercial production projects; Revenue from European customers was 2.22 billion yuan, a year-on-year increase of 5.3%; Revenue from Chinese customers was 3.4 billion yuan, a year-on-year increase of 2.8%; Customer revenue from other regions was 910 million yuan, a year-on-year decrease of 17.4%.

 

 

 

The decline in revenue from US clients may be due to the impact of the US biosafety bill controversy, which was also a concern for investors of WuXi AppTec in the first half of this year.

 

 

 

However, relevant personnel from WuXi AppTec also pointed out that under external environmental challenges, the company's revenue and profit in the second quarter of this year have steadily increased as planned compared to the previous quarter. At the same time, the company has achieved 43.1 billion yuan in orders on hand, excluding specific commercial projects, with a year-on-year growth of 33.2%. The person reiterated that the company expects to achieve annual revenue of 38.3 billion yuan to 40.5 billion yuan, free cash flow of 4 billion yuan to 5 billion yuan, and adjusted non IFRS attributable net profit margin equivalent to last year.

 

 

 

Data shows that in the first half of this year, WuXi AppTec added over 500 new customers while maintaining its existing large active customer base of over 6000. The demand for the company's services from customers around the world continues to grow. As of the end of June 2024, the company's on hand orders amounted to 43.1 billion yuan, a year-on-year increase of 33.2% excluding specific commercial projects.

 

 

 

It is reported that while disclosing its semi annual report, WuXi AppTec also disclosed its 2024 action plan for improving quality, efficiency, and returns. WuXi AppTec stated that in 2024, the company will continue to provide continuous and stable cash dividends to investors, implementing a "long-term, stable, and sustainable" shareholder value return mechanism.

 

 

 

In addition to WuXi AppTec, the pharmaceutical companies that disclosed their 2024 interim reports on July 29th also include Zollinger Pharmaceutical and Edbio. Both pharmaceutical companies achieved year-on-year positive growth in revenue and net profit.

 

 

 

According to the semi annual report released by Zogli Pharmaceutical, the company achieved a revenue of 1.428 billion yuan in the first half of 2024, a year-on-year increase of 41.21%; The corresponding attributable net profit was 296 million yuan, a year-on-year increase of 49.78%. On the evening of the same day, Zuo Li Pharmaceutical announced that it plans to repurchase the company's shares for 200 million to 300 million yuan, and the purpose of the planned share repurchase is for equity incentive plans.

 

 

 

Regarding the reasons for the performance growth, Zuo Li Pharmaceutical stated that based on the advantage of its core products entering the national essential drug catalog, the company continues to strengthen market expansion. The sales revenue of the Wuling series increased by 29.15% compared to the same period last year, among which the sales revenue of Wuling capsules increased by 28.86% compared to the same period last year; The sales revenue of Lingze tablets increased by 30.84% compared to the same period last year; In the second quarter, the sales of net prepared pieces of traditional Chinese medicine on the hospital Internet increased significantly, and the sales revenue of the series of pieces of traditional Chinese medicine increased by 57.11% over the same period last year; With the increase of registered varieties, the sales revenue of traditional Chinese medicine formula granules increased by 256.73% compared to the same period last year.

 

 

 

Industry insiders have pointed out that in recent years, China has attached great importance to the development of the traditional Chinese medicine industry and has continuously introduced policies to support the healthy and stable development of the industry. China's traditional Chinese medicine industry is entering a new historical development period. In the context of such policies, Zogli Pharmaceutical has also maintained excellent growth performance in recent years. Among them, from 2020 to 2023, the company's net profit growth rate reached 247%, 102%, 52%, and 40% respectively.

 

 

 

In addition, the semi annual performance report released by Ed Biotech shows that the company's operating revenue in the first half of 2024 was about 543 million yuan, an increase of 18.38% year-on-year; The net profit attributable to shareholders of the listed company was approximately 144 million yuan, an increase of 13.49% year-on-year.

 

 

 

Data shows that Ed Biotech has long been deeply involved in the field of tumor gene testing, adhering to patient-centered approach, focusing on tumor drug co diagnosis based on clinical needs, relying on powerful bioinformatics algorithms, laying out detection reagents, software, and supporting instruments for various technology platforms, and providing detection services and drug clinical research services. As of now, the company has independently developed and approved 27 types of tumor gene testing products in China (all of which belong to the top three categories of medical devices with the highest regulatory requirements. After the implementation of diagnostic registration regulations, the products applied for registration by the company have accompanying diagnostic labels).