China's Most Profitable Pharmaceutical Company Earns 52.47 Million Yuan Daily on Average

What are the key factors behind WuXi AppTec’s doubled net profit?

Last year’s first three quarters already made WuXi AppTec (603259.SH, 02359.HK) the most profitable pharmaceutical company on the A-shares market (based on net profit attributable to shareholders). On March 22, the company announced its full-year results.

The annual report shows that in 2025, WuXi AppTec achieved revenue of 45.456 billion yuan, a 15.84% increase year-over-year; net profit attributable to shareholders was 19.151 billion yuan, a 102.65% surge. Converted into daily earnings, the company makes about 52.47 million yuan per day.

Always keen on dividends, WuXi AppTec also announced its latest dividend plan with the annual report: 15.79 yuan (tax included) cash dividend per 10 shares, totaling 4.712 billion yuan in cash dividends. Additionally, the company maintained its 2026 mid-year dividend plan of 1 billion yuan. In total, the cash dividends for 2026 could reach 5.71 billion yuan, setting a new record high.

From this performance, the company’s revenue met the previous guidance, and before this, it had raised its 2025 revenue forecast three times.

The doubling of net profit behind WuXi AppTec’s growth is due to continuous revenue expansion, ongoing optimization of manufacturing processes and operational efficiency, as well as increased capacity utilization from late-stage clinical and commercialization projects. Moreover, gains from selling part of its stake in joint venture WuXi Heli and divesting some businesses further boosted profits. In 2025, investment income reached 8.588 billion yuan, a 13.21-fold increase year-over-year.

Looking at market revenue sources, WuXi AppTec’s largest market (based on ongoing business revenue) remains the U.S., with 2025 revenue of 31.25 billion yuan, growing faster than the overall company revenue at 34.3%. Next are China and Europe, with revenues of 5.47 billion yuan and 4.82 billion yuan, respectively, but both declined year-over-year by 3.5% and 4.0%. Revenue from Japan, Korea, and other regions was 1.88 billion yuan, up 4.1%.

The growth in WuXi AppTec’s main business revenue is driven by the rapid expansion of its TIDES segment (oligonucleotides and peptides). GLP-1 (glucagon-like peptide-1) has become a revolutionary target in diabetes and weight loss treatments, boosting global demand for peptide drugs and increasing contract manufacturing orders. As a pharmaceutical outsourcing manufacturer, WuXi AppTec’s TIDES business has risen sharply in recent years.

The annual report shows that as new capacity was ramped up quarterly in 2024, TIDES revenue in 2025 reached 11.37 billion yuan, nearly doubling (+96.0%). By the end of the year, TIDES order backlog increased by 20.2% year-over-year.

Overall, as of this annual report, WuXi AppTec’s ongoing business order backlog stood at 58 billion yuan, up 28.8%.

WuXi AppTec’s total revenue and net profit in 2025 both hit record highs. Additionally, its adjusted non-IFRS gross profit margin increased to 48.2%. Will the company’s performance continue to sustain in 2026?

WuXi AppTec expressed confidence in maintaining rapid business growth, expecting total revenue of 51.3 to 53 billion yuan in 2026, with ongoing business revenue growing 18% to 22% year-over-year. The company is confident it can maintain a stable and resilient adjusted non-IFRS net profit margin in 2026.

(This article is from First Financial)