WuXi XDC (HKG:2268) shares plummeted 5.12% in Tuesday's trading session, despite reporting robust first-half financial results. The biotechnology company's stock decline comes as investors weigh the strong growth against concerns about future capital expenditure and a slight earnings miss.

According to the company's interim report, WuXi XDC's revenue surged 62.19% year-on-year to 2.7 billion yuan, surpassing analyst estimates of 2.58 billion yuan. The firm's profit attributable to shareholders climbed 52.74% to 746 million yuan, resulting in basic earnings per share of 0.62 yuan. However, the earnings per share figure fell slightly short of the 0.59 yuan estimated by analysts at Visible Alpha.

While WuXi XDC demonstrated impressive growth in its client base and project pipeline, with total global clients expanding to 563 and integrated CMC projects reaching 225, investors appear cautious about the company's future spending plans. A separate announcement revealed that WuXi XDC expects capital payment to reach 1.56 billion yuan in 2025, which may have sparked concerns about the impact on future profitability. The market reaction suggests that investors are carefully balancing the company's strong current performance against potential headwinds from increased capital expenditure and the marginal earnings miss.