HKEX | 2269
WuXi Biologics to invest at least RMB 1 billion in fixed assets every year
Chris Chen, CEO of WuXi Biologics (2269) said that the European and American markets are large, and the company will continue to increase investment. In the future, the company will mainly build factories in Ireland and the United States. As for the Chinese market, although the market is small, but due to the industry's initial start, it is expected that there will be many opportunities in the next 10 years, and its plans to increase investment and production capacity in the Chinese market.
Last year, the company didn’t have any dividend payout and the gross profit margin fell. He pointed out that the company invested more than RMB 4 billion in the new plant. And the company was in the high-speed development stage last year. He believes that it is more helpful for the company to develop its business than dividend payout. The company will continue to invest more than RMB 1 billion on fixed asset every year. In terms of the profit margin, he explains that the drop in gross profit margin was mainly due to the commissioning of new plants last year, and it is expected that the new plants will have a profit contribution in the future.
For the mainland to set up a science and technology board, he said that there is no plan to return to mainland for listing.
He also believes that although many companies were affected by the national centralized procurement policy last year, the company’s drug platform was not affected by the relevant policies. At the same time, the medical reform policy has also promoted the innovation and transformation of generic pharmaceutical companies, which is expected to benefit the company's business.
The company recorded revenue growth of 56.6% year-on-year to RMB 2.534 billion last year, net profit increased nearly 1.5 times year-on-year to RMB 630 million; adjusted net profit increased by 73.6% to RMB 751 million; basic earnings per share was RMB 0.52.