WUXI XDC (02268) released its interim results for 2025 on August 18, with its robust growth trajectory and strategic positioning drawing widespread industry attention. During the earnings call held on August 19, the company further conveyed positive signals: based on current order backlog and capacity release schedule, the company raised its full-year 2025 revenue growth expectation from 35% to over 45%, highlighting its precise grasp of market trends and long-term development confidence.

**Outstanding Financial Performance with Continuous Profitability Optimization**

Financial results show that WUXI XDC achieved revenue of RMB 2.701 billion in the first half, representing a 62.2% year-over-year increase. Adjusted net profit (excluding interest income and expenses) reached RMB 733 million, growing 69.6%. Gross margin improved by 4 percentage points year-over-year to 36.1%, while net profit margin reached 27.6%, further enhancing profitability quality.

This performance stems from the deepened execution of the company's "Enable, Follow and Win the Molecule" strategy. As of the reporting period end, total iCMC projects accumulated to 225, with 37 new iCMC projects signed in the first half of 2025, setting a historical record. The company successfully secured 11 PPQ (Process Performance Qualification) projects and 1 commercial project, with the project pipeline steadily advancing to later stages.

Notably, overseas revenue accounted for 82% of total revenue, demonstrating significant global expansion achievements. Company management revealed during the earnings call that accelerated overseas market revenue stems from client pipelines advancing to later stages, while the trend of Chinese innovative drugs "going global" will also contribute incremental growth.

**Technology and Capacity Dual-Engine Drive: What Supports the Raised Guidance?**

The raised performance guidance stems from multiple favorable factors:

**Sustained Industry Prosperity**: ADC and other bioconjugate drug markets continue explosive growth, with global pharmaceutical giants and innovative drug companies showing strong demand for integrated CRDMO services.

**Abundant Order Backlog**: Unfulfilled orders totaled $1.329 billion, up 57.9% year-over-year, providing assurance for performance delivery.

**Accelerated Project Progress**: Project pipeline advancing to later stages, with 2-3 client projects expected to submit BLA this year.

**Accelerated Capacity Release**: Wuxi base DP3 formulation workshop completed GMP release, Singapore base expected to commence production in the first half of 2026, significantly enhancing commercial production capabilities.

As the global bioconjugate drug CRDMO leader, WUXI XDC has built difficult-to-replicate competitive barriers through integrated technology platform enablement and one-stop production within the same campus. Technology-wise, the company completed over 2,300 bioconjugate drug molecule early-stage studies in the first half, covering cutting-edge areas including bispecific ADCs, dual-payload ADCs, DACs, and AOCs, with industry-leading technical reserves in both depth and breadth.

The 37 newly signed iCMC projects also demonstrate highly differentiated target selection and innovative technology pathways, consistent with global bioconjugate drug innovation trends. As of the reporting period end, comprehensive ADC projects increased to 201, while comprehensive XDC projects rose to 24, continuously meeting clients' diversified development needs.

"We not only participate in early-stage R&D of ADC & XDC projects but also enable clients' molecules to advance toward commercialization through technology empowerment," company management emphasized during the earnings call. Its proprietary WuXiDARx™ conjugation technology platform, X-LinC linker technology, and innovative WuXiTecan-1 and WuXiTecan-2 payload-linker technologies have become industry innovation benchmarks, helping clients build differentiated R&D advantages and accelerate development processes.

Regarding capacity, under the "Global Dual-Facility Production" strategy, WUXI XDC continues advancing capacity deployment in Wuxi and Singapore, making full preparations for next year's commercial production. This guidance raise not only expresses confidence in short-term order execution capabilities but also reflects the company's strategic judgment on long-term development of ADC and XDC tracks. With Singapore base production commencement and further Wuxi capacity scaling, WUXI XDC is positioned to capitalize on momentum and continue harvesting dividends from global bioconjugate drug industrialization, consolidating its "picks-and-shovels" leadership position.

**Customer Ecosystem Expansion: Over Half of Global Top 20 Pharmaceutical Companies Engaged**

As of end-June, WUXI XDC served 563 cumulative clients, adding 64 new clients since end-2024. Among the top 20 global pharmaceutical companies by 2024 revenue, 13 have established partnerships with WUXI XDC. This client base expansion and structural optimization directly reflects in transaction data: from January to July 2025, among global ADC licensing deals exceeding $1 billion, WUXI XDC clients contributed over 75% of total value. During the same period, 75% of acquired companies in ADC M&A transactions were existing clients.

According to earnings call content, WUXI XDC's market share jumped from 9.9% in 2022 to current 22.2%. In the first half of 2025, the company enabled clients to achieve the highest number of global IND approvals, truly deserving its industry leadership position.

According to Frost & Sullivan's 2024 industry report forecast, the global ADC market size compound annual growth rate from 2024-2030 will reach 31%. Combined with booming industry trends, we believe WUXI XDC's journey toward hundred-billion market capitalization will not be long.

**Conclusion**

As the undisputed "super picks-and-shovels provider" in the global bioconjugate drug CRDMO field, WUXI XDC is reshaping industry dynamics through dual engines of technological barriers and capacity expansion. Looking ahead, as more client pipelines enter commercial stages, its leadership position and long-term value will shine even brighter under capital market spotlight.