WUXI XDC (02268) has once again delivered impressive results, demonstrating robust growth across key financial metrics for the full year 2025. Revenue, gross profit, and adjusted net profit all achieved high growth rates. The company maintained its position as the global leader in the number of iCMC projects, with its global market share exceeding 24% (based on 2025 revenue), showcasing a clear and powerful growth trajectory.

The strong financial and operational figures underscore the company's leadership and stability. In 2025, revenue grew 46.7% year-on-year to RMB 5.94 billion, with overseas revenue contributing 85% of the total. Gross profit surged 72.5% to RMB 2.14 billion. Adjusted net profit (excluding interest income and foreign exchange impacts) increased by 69.9% to RMB 1.56 billion, an improvement of 3.6 percentage points compared to 2024. The profit growth rate significantly outpacing revenue growth further demonstrates the company's emerging economies of scale. When adding back the substantial interest income of nearly RMB 170 million generated in 2025, this adjusted net profit metric reaches approximately RMB 1.73 billion. The excellent financial performance fully validates the company's outstanding global footprint, operational quality, and robust financial management capabilities, highlighting strong internal growth momentum and sustainable profitability.

Over a longer timeframe, the growth curve is even steeper. From 2022 to 2025, the company's revenue compound annual growth rate (CAGR) exceeded 80%. Furthermore, the total value of unfinished orders increased to USD 1.49 billion, a year-on-year rise of 50.3%, providing a solid foundation for future performance delivery.

Behind the impressive financial numbers lies a solid operational foundation. The project pipeline is robust and efficiently converting, indicating a deep reservoir of potential commercial value. By the end of 2025, the company served over 640 global clients. Fourteen of the world's top 20 pharmaceutical companies by revenue in 2024 were its partners, accounting for approximately 32% of its revenue, reflecting the high level of trust from major pharmaceutical companies in its technology, quality, and delivery capabilities.

From a project pipeline perspective, the company has cumulatively serviced over 1,000 discovery-stage projects, with 252 having advanced to the iCMC development stage. In 2025 alone, 69 projects successfully progressed from discovery to the iCMC stage, demonstrating strong front-end project attraction and conversion capabilities, alongside increasing client loyalty. The company has cumulatively enabled clients to submit over 120 Investigational New Drug (IND) applications, which best illustrates its value in research and development enablement.

A more significant highlight is the growing diversity of emerging molecular types and later-stage project reserves. Among the 70 new iCMC projects signed in 2025, the proportion of emerging conjugate molecules, such as dual-payload ADCs, bispecific ADCs, and various XDCs, increased significantly. This indicates that WUXI XDC's platform capabilities now comprehensively cover the development needs for next-generation bioconjugate drugs. Additionally, the company holds 18 Process Performance Qualification (PPQ) projects and one commercial manufacturing project. This signifies that its production capacity and technology platforms are beginning to handle products nearing market launch, and future revenue is expected to shift more towards large-scale, sustainable commercial manufacturing income, moving beyond reliance on R&D revenue. A diverse and progressively advancing project portfolio forms the basis for WUXI XDC's continued high growth.

If financial performance and client data reflect leadership in "quantity," then advancements in early-stage conjugate technology iteration demonstrate leadership in "quality." WUXI XDC is transitioning from "service provision" to "value co-creation." Its R&D strategy is clear: through in-house development of technologies across the conjugation process, it continuously enriches its technology toolbox, creating conditions for licensing partnerships and diverse collaboration models, thereby opening up more potential revenue streams.

To meet diverse client needs, the company continues to build its three core technology platforms: - The WuXiDARx™ conjugation technology platform has been upgraded from DAR4 to DARx, effectively improving the homogeneity and process stability of ADC drugs while further enhancing core advantages in cost reduction and efficiency. For innovative molecules, the WuXiDARx™ technology can generate dual-payload ADCs using interchain cysteine sites, eliminating the need for antibody engineering or enzymatic conjugation. This allows for simplified CMC processes using a single chemical platform, offering both high efficiency and cost advantages. The WuXiDAR1 and WuXiDAR2 components within the platform further expand application boundaries, potentially aiding the development of innovative conjugates like AOCs or APCs, providing strong momentum for novel drug R&D. - The novel X-LinC linker technology aims to improve ADC stability and therapeutic window through highly stable linkers. Data shows its stability outperforms widely used maleimide linkers in both in vitro and in vivo studies. This technology is expected to be validated and adopted by clients seeking superior performance and stability. - The WuXiTecan-1 & WuXiTecan-2 payload-linker technology platforms are designed to provide ADC drugs with better stability, hydrophilicity, and tolerability. Data indicates excellent efficacy and safety in both mouse and monkey models. WuXiTecan-2 showed stronger anti-tumor effects in early CDX models for dual-payload ADCs. The WuXiTecan-2 platform, with its unique advantages, holds significant potential for commercial value creation. Recently, WUXI XDC announced a licensing agreement with biotechnology company Earendil Labs for this technology, granting the latter exclusive global development rights for ADC drug candidates targeting several specific targets. The potential total deal value could reach up to USD 885 million, including an upfront payment and various development, regulatory, and sales milestone payments. This model signifies that the company's cutting-edge technologies are integrating and upgrading in resonance with client projects. The company is actively exploring various models, including technology licensing, collaborative development, and technology transfer, to establish ongoing milestone revenue streams and unlock future income potential.

The company has also made significant progress in accelerating its small molecule business development. In 2025, WUXI XDC commenced construction of its Jiangyin base, a key step in perfecting its full-industry-chain layout, with a focus on the development and scaled production of small molecules and novel XDC molecules. According to plans, the base is designed with an annual small molecule capacity of 3-5 tons, covering process development, PPQ batch supply, and commercial support. It features segregated OEB level 5 high-potency and non-high-potency production areas, complemented by QC, warehouse, and office facilities, creating a closed-loop service from "R&D-production-quality control-warehousing" to fully support client needs from clinical stages to commercialization. This move aligns with the high growth and market demand in the bioconjugate drug industry, particularly the accelerating need for payload-linker R&D and production, and the increasing demand from pharma companies for full-chain outsourcing and scalable, compliant supply. The Jiangyin base aims to break through technical barriers by strengthening complex payload process development, accelerate clinical progress through PPQ batch supply, meet commercial demand with scaled capacity, and ensure compliance and flexibility through its zoned design. This demonstrates the company's strategic commitment and investment in the small molecule and CDMO sectors, aligning with industry trends while strengthening its core competitive advantages and laying the foundation for business diversification, revenue growth, and enhanced industry services.

Concurrently, in 2025, WUXI XDC completed the acquisition of the Hefei base, using it to deepen its strategic focus on Peptide-Drug Conjugates (PDCs) and Antibody-Oligonucleotide Conjugates (AOCs), further enriching its bioconjugate drug portfolio. This base currently possesses over 6,000 square meters of R&D and supporting production facilities.

The company's global strategic layout has also expanded. While maintaining strong organic growth momentum, WUXI XDC seized a strategic opportunity by initiating a controlling stake acquisition of TOT Biopharm in early 2026. This is not merely an addition of scale but a strategic move to further deepen its global leadership, driven by both "organic expansion and strategic mergers & acquisitions." The acquisition is expected to be completed by the end of March 2026, followed by a comprehensive integration phase. Post-integration, WUXI XDC will add a Suzhou facility, further expanding its production capacity map and providing global clients with comprehensive end-to-end production services. The global bioconjugate drug industry is at a critical inflection point, transitioning from a wave of clinical trials to commercial explosion. The demand for large-scale, high-quality, integrated capacity from hundreds of mid-to-late-stage clinical projects is growing exponentially, making production capacity a core scarce resource. However, building new capacity is time-consuming and high-risk, struggling to match urgent market needs. Through this acquisition, WUXI XDC can rapidly integrate TOT Biopharm's established production base in Suzhou, further expanding its ADC drug substance and drug product capacity. This capital operation effectively saves at least 2-3 years of capacity construction time, providing crucial preparation for handling upcoming commercial manufacturing orders. The value of the acquisition extends beyond capacity. Post-integration, WUXI XDC will also incorporate TOT Biopharm's unique conjugation technologies, expand its client base and project portfolio, offering clients more flexible and comprehensive services.

Through multi-location deployment, WUXI XDC's global service network is taking shape. Domestically, its production bases now cover Wuxi (core R&D and production), Hefei (focus on PDC/AOC R&D and production), Jiangyin (small molecule scaled production), and soon-to-be-integrated Suzhou (key hub for commercial production). Overseas, with Singapore as a strategic hub, GMP release capabilities are expected in the first half of 2026, aiming to be closer to global clients, deepen local service capabilities, and build a diversified supply chain system.

Anchored by its strategic objectives and based on strong 2025 performance and clear strategic positioning, WUXI XDC has charted a quantifiable roadmap for the next five-year cycle. It aims to achieve a compound annual growth rate of 30%-35% between 2025 and 2030, driven by three key engines for high-quality development. Accordingly, the company has updated its capital expenditure plan for 2026-2030, planning a cumulative investment of RMB 8 billion for the expansion and integration of domestic and international production capacity. - Opportunities in Novel Conjugates, Creating a Second Growth Curve: Continue increasing investment in R&D for cutting-edge technology platforms, accelerate the landing of diverse conjugate projects, and translate technological advantages into sustainable commercial orders. Actively explore technology cooperation and out-licensing to open new revenue streams and drive continuous optimization and diversification of the business structure. - Expand Production Network, Focus on Commercial Scale-Up: Concentrate on capacity expansion and global capacity layout. Relying on the successful approval and launch of late-stage projects, continuously scale up commercial manufacturing. The target is to increase the revenue contribution from commercial-stage (M-end) projects to 20% by 2030, realizing large-scale delivery capabilities. - Inorganic M&A and Organic Growth: Following the completion and integration of the TOT Biopharm acquisition, further expand operational scale and market share through production line upgrades, efficient capacity utilization, and client base expansion. Strengthen the foundation through internal construction and achieve breakthroughs through external expansion to consolidate industry leadership.

WUXI XDC's 2025 performance report demonstrates how a leader continues to widen its advantage in a high-growth sector. Beyond the financials, the company has built a difficult-to-replicate full-cycle service barrier through technological depth, project pipeline quality, global capacity layout, and forward-looking strategic investments. In the long race of the bioconjugate drug industry, which starts with innovation, succeeds through process, and culminates in capacity, WUXI XDC is profoundly defining and leading the future landscape of the global bioconjugate CDMO industry.