Half Year 2026 WuXi XDC Cayman Inc Earnings Call Transcript
Key Points
- Revenue grew 37% YoY on an actual exchange rate basis and 41.5% on a constant exchange rate basis, reaching RMB3.7 billion.
- Adjusted net profit surpassed RMB1 billion for the first time, with a stable margin of 27.8%.
- Service backlog increased over 50% to nearly $2 billion, with an additional $150 million in milestone backlog.
- Signed a record 51 ICMCs in the first half, with about 75% from novel modalities like bispecific and dual-payload ADCs.
- Singapore site transitioned to operation, with GMP release of mAb and BCM3, enhancing supply chain resilience.
- Linker-payload business growth outpaced overall XDC growth, supported by over 10 PPQs and new payload innovations.
- BioDlink acquisition integration progressed smoothly, adding a second commercial project and strategic partnerships.
- Commercial backlog emerged for the first time, with $120 million in commercial orders, signaling future M-stage revenue.
- Strong client engagement with MNCs, with 15 of top 20 clients contributing about one-third of revenue.
- Maintained full-year guidance of at least 35% standalone growth and 30% consolidated growth on a constant exchange rate basis.
- Consolidation of BioDlink, which is currently loss-making, negatively impacts overall margins.
- Singapore facility ramp-up is expected to be slower than typical China sites, potentially delaying revenue contribution.
- Gross profit margin expansion is limited, with expectations of maintaining rather than significantly improving margins in H2.
- The Merck commercial project was lost to another vendor due to lack of commercial track record, highlighting a competitive disadvantage.
- DAC (degrader-antibody conjugates) projects are declining in the pipeline, indicating development challenges in that modality.
- Backlog growth is partly driven by milestone backlog, which is unpredictable and not included in guidance.
- US revenue contribution dropped slightly due to USD depreciation, though constant exchange rate shows stability.
- Management declined to raise full-year guidance despite strong performance, citing high capacity utilization and potential margin pressure.
- Competitive landscape remains intense with Lonza and Samsung Biologics expanding ADC capacity, though market share is maintained.
- Milestone payments from licensing deals are uncertain and not factored into financial guidance, limiting upside visibility.
Welcome to XDC 2026 interim earnings call. This is Chris Fang, Head of IR. Joining us today online are our Chief Executive Officer, Dr. Jincai Li and also our Chief Financial Officer, Mr. Xiaojie Xi, together with the IR team.
So for today's earnings presentation slides are available on our corporate website under IR section and also Hong Kong disclosure platform, please double check. And also, at the beginning of the earnings call, management team will walk you through our half year business updates and key financial highlights followed by our Q&A session. Please note that this call contains forward-looking statements. Kindly refer to our published announcement for relevant disclaimers.
With that, I will hand it over to the management team. So Dr. Jimmy, please go ahead.
Great. Thank you, Chris. Good morning and good evening, everyone. Thank you for joining our earnings call. We are very happy to share that
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