Q2 2026 WuXi XDC Cayman Inc Earnings Call

August 25, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #3: Okay, thank you for waiting. Good morning and good evening, everyone. Welcome to the WuXi XDC call. This is Chris Van, Head of IR. Joining us today online are our Chief Executive Officer, Dr. Jimmy Lee, and our Chief Financial Officer, Mr. Michael Xie.

Chris Fang: Okay, thank you for waiting. Good morning and good evening, everyone. Welcome to WuXi XDC 2026 Interim Earnings Call. This is Chris Fang, Head of IR. Joining us today online are our Chief Executive Officer, Dr. Jimmy Li, and also our Chief Financial Officer, Mr. Michael Shi, together with the IR team. For today's earnings presentation, slides are available on our corporate website under IR section, and also Hong Kong disclosure platform. Please double-check. At the beginning of the earnings call, the management team will walk you through our H1 business updates and key financial highlights. Follow the 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. Dr. Jimmy, please go ahead.

Chris Fang: Okay, thank you for waiting. Good morning and good evening, everyone. Welcome to WuXi XDC 2026 Interim Earnings Call. This is Chris Fang, Head of IR. Joining us today online are our Chief Executive Officer, Dr. Jimmy Li, and also our Chief Financial Officer, Mr. Michael Xi, together with the IR team. For today's earnings presentation, slides are available on our corporate website under IR section, and also Hong Kong disclosure platform. Please double-check. At the beginning of the earnings call, the management team will walk you through our H1 business updates and key financial highlights. Follow the 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. Dr. Jimmy, please go ahead.

Speaker #3: Together with the IR team. For today's earnings presentation, slides are available on our corporate website under the IR section and also on the Hong Kong Disclosure Platform.

Speaker #3: Please double-check. Also, at the beginning of the earnings call, the management team will walk you through our half-year business updates and key financial highlights, followed by our Q&A session.

Speaker #3: 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.

Speaker #3: So, Dr. Jimmy, please go ahead.

Jimmy Li: Great. Thank you, Chris. Good morning and good evening, everyone. Thank you for joining our earnings call. We are very happy to share that WuXi XDC has achieved another outstanding H1 of 2026. I will start going over some highlights and then followed by business and operations update, and then Michael will share the financial results. Then I will come back to do a quick sharing of the outlook and summary. Next slide. As usual, we start with sharing some of the key highlights on the projects, as well as the financial part. On the project side, as you have seen, we have signed another record number of ICMC projects for the H1, as well as 2 new PB2 projects. Total number of ICMC continued to increase rapidly, indicating the gain of market share, but also, more importantly, the continued expansion of the XDC space.

Speaker #4: Great. Thank you, Chris. Good morning and good evening, everyone. Thank you for joining our earnings call. We are very happy to share that XDC has achieved another outstanding first half of 2026.

Speaker #4: I will start by going over some highlights, followed by a business and operations update, and then the results. After that, I'll come back to share a quick outlook and summary.

Speaker #4: So, next slide. As usual, we start with sharing some of the key highlights on the projects, as well as the financial part. On the project side, as you have seen, we've signed another record number of ICMC projects for the first half.

Speaker #4: As well as two new PPQ projects. So, the total number of ICMC continued to increase rapidly, indicating the gain of market share but also, more importantly, the continued expansion of the XDC space.

Speaker #4: Our number of PPQ projects continued to increase, and now, with the acquisition of Biodlink, we have also added the second commercial project. On the financial side, we're happy to report that we achieved another very solid growth in the first half.

Jimmy Li: Our number of PB2 projects continue to increase. Now also with the acquisition of BioDlink, we also added the second commercial projects. On the financial side, we are happy to report that we have achieved another very solid growth on the H1. Top line in terms of RMB reporting, we increased the revenue to RMB 3.7 billion. That is 37% on the AER. On the constant exchange rate basis, that growth is 41.5%. As you can see also, the profit margins slightly expanded compared to 2025. Very importantly, the backlog continued to increase at a very strong growth rate. Service backlog increased to slightly below RMB 2 billion, indicating an over 50% increase. We also added the milestone backlog for the first time. If you add that number, that total goes to around RMB 2.2 billion. Solid growth in terms of the backlog.

Speaker #4: So, top line, in terms of R&B reporting, we increased the revenue to $3.7 billion. So that's 37% on the AER. On a constant exchange rate basis, that growth is 41.5%.

Speaker #4: And so, as you can see, also the profit margins slightly expanded compared to 2025. And also, very importantly, the backlog continued to increase at a very strong growth rate.

Speaker #4: So, service backlog increased to slightly below $2 billion, indicating an over 50% increase. We also added the milestone backlog for the first time, so if you add that number, the total goes to around $2.2 billion.

Speaker #4: So, solid growth in terms of the backlog. Next slide. For other key achievements on the innovation and execution side, we continue to increase the global client number as well as submitting the INDs for first-in-human.

Jimmy Li: Next slide. For other key achievements on the innovation and execution side, we continue to increase the global client number, as well as submitting the INDs for first-in-human. Our innovation monetization continued to make good progress. We mentioned that we signed a first licensing deal with Earendil Labs earlier this year. We are happy to share that we have secured the second licensing deal with the European Biotech, which will be announced very soon. Another important milestone is that the Singapore site officially has now transitioned from construction to operation with the GMP release of the NAb and BCM3 on 17 October, and then the next couple of days, we will be also releasing the DP4 facility. Our global talent continued to increase with close to 1,000 new employees added. Total headcount now is around 3,600, including about 500 from BioDlink.

Speaker #4: Our innovation monetization continued to make good progress. We mentioned that we signed a first licensing deal with Urantia Labs earlier this year.

Speaker #4: And also, we're happy to share that we have secured the second licensing deal with a European biotech, which will be announced very soon. Another important milestone is that the Singapore site has now officially transitioned from construction to operation.

Speaker #4: With the GMP release of the MAB and BCM3 on August 17, and then in the next couple of days we'll also be releasing the DP4 facility. Our global headcount continues to increase, with close to 1,000 new employees added. Total headcount is now around 3,600, including about 500 from BDK.

Speaker #4: So those are the quick highlights on the interim results. Next, I'll go over a little bit more on the business and operations. Starting with the funnel—this, obviously, you might already be familiar with.

Jimmy Li: So those are the quick highlights on the interim results. Next, I will go over a little bit more on the business and operations. Starting with the funnel, this obviously you might be already familiar with, and also best represent WuXi XDC CRMO business model. We continue to help clients to develop the best-in-class and first-in-class ADCs and XDCs. So total number of assets moving from discovery to development now accumulated to 77. As mentioned, we signed a record number of ICMC in the H1, 51 total, and we continued to help clients submit many INDs. So that number was 27 in the H1, accumulating to over 160 from the last five to six years. We continue to expand on the PPQ and also now added the second commercial.

Speaker #4: And also, best represent XDC's CRDMO business model. So we continue to help clients develop best-in-class and first-in-class ADCs and XDCs. The total number of assets moving from discovery to development has now accumulated to 77.

Speaker #4: As mentioned, we signed a record number of ICMCs in the first half—51 in total. We also continue to help clients submit many INDs; that number was 27 in the first half, bringing the total to over 160 for the last five to six years.

Speaker #4: We continue to expand on the PPQ and have also now added the second commercial. So, the strong growth of this basically indicates the continued expansion of the market.

Jimmy Li: The strong growth of this basically indicates the continued expansion of the market, the ADC, then XDC market, but also our solid service and platform that continue to attract more and more clients. Next slide shows the stand-alone WuXi XDC stand-alone, because this is the first time we consolidated BioDlink results. So we wanted to also share WuXi XDC stand-alone, which obviously is most of the numbers coming from WuXi XDC side. Next slide. If we look at the details of the 51 ICMCs signed in the H1, we can see that about three quarters of the newly signed ICMCs represent a newer type of modality, including new targets, novel payloads, bispecific ADCs, dual payload ADCs, and also some of the newer, what we call XDC modalities, including, for example, antibody-drug conjugates, antibody-peptide conjugates, and other type of novel conjugates.

Speaker #4: The ADC, then XDC market, but also our solid service and platform that continue to attract more and more clients. Next slide shows the standalone XDC, standalone.

Speaker #4: Because this is the first time we consolidated BDK results, we wanted to also share XDC standalone, which obviously means that most of the numbers are coming from the XDC side.

Speaker #4: Next slide. If we look at the details of the 51 ICMCs signed in the first half, we can see that about three-quarters of the units signed to ICMCs represent newer types of modality.

Speaker #4: Including new targets, novel payloads by specific ADCs, dual payload ADCs, and also some of the newer, what we call, XDC modalities, including, for example, antibody-oligo conjugates, antibody-peptide conjugates, and other types of novel conjugates.

Speaker #4: So again, this shows that the field continues to evolve quickly from the more traditional ADCs to a broader type of XDCs, and that innovation continues to show strong momentum.

Jimmy Li: Again, this shows that the field continued to evolve quickly from the more traditional ADCs to broader type of XDCs, and that the innovation continued to show strong momentum. Next slide shows more details on the PPQ projects. You can see that around half of the PPQ projects are coming from overseas clients, and among them, nine are from MNCs. Also those represented 14 differentiated targets or MOAs. We also mentioned earlier, added two PPQs in the H1. In terms of execution, we now have completed a total of 27 PPQ components over the past few years. Again, those represent more and more opportunities flowing down, potentially into the BLAs and commercial manufacturing.

Speaker #4: The next slide shows more details on the PPQ projects. You can see that around half of the PPQ projects are coming from overseas clients, and among them, nine are from MNCs.

Speaker #4: Also, those represented are 14 differentiated targets or MOAs. So, we also added— as I mentioned earlier— asset two PPQs in the first half. And in terms of execution, we now have completed a total of 27 PPQ components over the past few years.

Speaker #4: Again, those represent more and more opportunities flowing down, potentially into the BLAs and commercial manufacturing. We also look into the indications of those PPQ projects.

Jimmy Li: We also look into the indications of those PPQ projects and are excited to see that about a quarter, about a third actually, a third of those projects involve first-line therapy clinical trials. If those are successful, it could provide a broader market access and therefore more commercial success potentially for those assets. Next slide. In terms of our client base, we continue to grow our client base and also continue to make a very solid engagement with the MNCs. So 15 out of top 20 are our clients in terms of revenue contribute just about one third of the total XDC revenue. The bottom few numbers also show that XDC continued to enable our clients to be successful in terms of licensing, in terms of financing. A large proportion of those deals are from the XDC clients.

Speaker #4: And excited to see that about a quarter about a third actually a third of those projects involve first line therapy clinical trials. And obviously that if those are successful it provide a broader market assets and therefore more commercial success potentially for those assets.

Speaker #4: Next slide. In terms of our client base, we continue to grow our client base and also continue to make very solid engagements with MNCs.

Speaker #4: So, 15 out of the top 20 are our clients. In terms of revenue, they contribute just about one third of the total XDC revenue. The bottom few numbers also show that XDC continues to enable our clients to be successful, in terms of licensing and in terms of financing.

Speaker #4: So, a large proportion of those deals are from XDC clients. And, also, particularly interesting is that for the first half of 2026, every single MAA deal involves clients of XDC.

Jimmy Li: Particularly interesting is that for the H1 2026, every single MAA deals involve clients of XDC. I think the number is around five to six of those MAAs occurred in the H1, and all of those were actually acquired by major pharmas. Again, continue to show how XDC support and enable clients to be very successful. Next slide. Those obviously are based on the very solid and continue evolving technologies that we provide to the clients. XDC's technology mainly focus on conjugation and also on the linker payload innovations. Our conjugation platform is the WuXiDAC platform that initially supported and continue to support many assets to use the WuXiDAR4 technology and moving into the clinics. So 10 plus CMC programs, including a couple that are already in the pivotal trial and PPQ stage.

Speaker #4: So I think the number is around five to six of those MAAs that occurred in the first half. And all of those were actually acquired by major pharmas.

Speaker #4: So again, continue to show how XDC supports and enables clients to be very successful. Yeah, next slide. Those obviously are based on the very solid and continually evolving technologies that we provide.

Speaker #4: To the clients. So, XDC's technology mainly focuses on conjugation and also on the ink payload innovations. Our conjugation platform is the WuXi X platform.

Speaker #4: That initially supported, and continue to support, many assets to use the .4 technology and move into the clinics. So, 10-plus CMC programs, including a couple that are already in the pivotal trial and PPQ stage.

Speaker #4: And over the past couple years, our dot-X continued to evolve to serve the dual modalities, especially the dot-1 and dot-2 conjugation technologies, to enable development of AOCs and APCs.

Jimmy Li: Over the past couple years, our WuXiDAC continued to evolve to serve the newer modalities, especially the WuXiDAR1 and WuXiDAR2 conjugation technologies to enable development of AOCs and APCs, or also importantly, the dual payload ADCs. With our WuXiDAC conjugation, there's no need to engineer the protein, and we basically tap into the wild type 15 conjugation site, but achieving the results of site specific conjugation, which provides a great convenience and also CMC friendliness for our clients down the road. Our linker payload technology center around hydrophilic linkers, basically that enable the WuXiTecan-2 which we signed quite a few molecular licensing deals. We now continue to expand that linker payload technology to include MAAs, ATIs and also antibody-drug conjugates. Those help to tap into the newer type of payloads, for example, the GPR immune agonist.

Speaker #4: Or also importantly the dual payload ADCs so with our dot X conjugation there's no need to engineer the protein. And we basically tap into the wild type 16 conjugation side but achieving the results of site specific conjugation which is provides a great convenience and also CMC friendliness for clients down the road.

Speaker #4: Our linker-payload technology centers around hydrophilic linkers basically, that enable the WuXi T102, for which we signed quite a few molecular licensing deals. But also, we now continue to expand that linker-payload technology to include MAEs, ATRIs, and also every building.

Speaker #4: So, those help to tap into the newer type of payloads. For example, the DDR immune agonist—those payloads actually come in handy when we develop the dual payload platforms, assisting to support clients' needs for developing best-in-class dual payload ADCs.

Jimmy Li: Those payloads actually come in handy when we develop dual payload platforms and systems to support clients' needs for developing best-in-class dual payload ADCs. The next slide shows how we continue to stay at the forefront of the industry and basically helping clients to explore all sorts of different conjugate modalities. The total number of bioconjugate molecules made by the team increased to over 22,000 through the H1 of the year. As you can see that at a discovery, earlier development stage, over 40% of those are what we call the XDC projects, and only ICMCs, 42 out of the 328 are also the novel newer modalities. The next slide is one of the favorite slides to demonstrate how we see the industry moving forward.

Speaker #4: The next slide shows how we continue to stay at the forefront of the industry, and basically, how we are helping clients to explore all sorts of different conjugate modalities.

Speaker #4: So, the total number of conjugate molecules made by the team increased to over 22,000 through the first half of the year. As you can see, at the discovery and early development stage, over 30% of those are what we call the XDC projects.

Speaker #4: And only 42 out of the 328 ICMCs are also the novel, newer modalities. The next slide is one of my favorite slides to demonstrate how we see the industry moving forward.

Speaker #4: So these are always early indicators in terms of what might be coming in the next six to twelve months, or even further down the road.

Jimmy Li: These are always early indicators in terms of what might be coming in the next 6 to 12 months or even further down the road. Basically, the picture continues to show that about 50% are the traditional ADCs, but a higher proportion are what we call the X domain, new bioconjugates. Those include the AOCs, APCs, degrader conjugates, and others. Even on the ADC part, more and more are on the dual payload and bispecific ADCs. Again, we stay at the forefront of helping clients to advance those novel modalities and also allow us to see great visibility in terms of what might be coming further down the road. To support the continued strong growth of the industry, next slide, we continue to invest in our capacity.

Speaker #4: So basically, the picture continues to show that about 50% are traditional ADCs, but a higher proportion are what we call the X domain new bioconjugates.

Speaker #4: So those include the AOCs, APCs, degrader conjugates, and others. And even on the ADC part, more and more are not only dual-payload and bispecific ADCs.

Speaker #4: So again, we stay at the forefront of helping clients to advance those novel modalities, and also, this allows us to have great visibility in terms of what might be coming further down the road.

Speaker #4: So to support the continued strong growth of the industry—next slide—we continue to invest in our capacity. And so now, in China, we have the WuXi set-aside largest center of excellence for ADC manufacturing.

Jimmy Li: We now in China, we have the WuXi site, largest center of excellence for ADC manufacturing. Shanghai site, we also continue to expand on the earlier discovery service and also development. As soon as we decide we acquire the BioDlink site, that offers also pretty much all-in-one service within that one campus as well. We acquired the Hefei site late last year for peptide capability, which now also added oligo capability. The Changzhou site is our very large-scale commercial manufacturing for payload linker, as well as newer modalities, includes peptides and oligos. As noted, we now officially also transition for Singapore site from construction to operation. I will also update some of the major sites a little more in the next few slides. The first is the WuXi site. Next slide.

Speaker #4: On the Shanghai side, we also continue to expand on the earlier discovery service and also development. Suzhou is the site where we acquired the Biodeling site, which also offers pretty much all-in-one service within that one campus as well.

Speaker #4: And we acquired the Hefei site late last year for peptide capability, which now also has added oligo capability. And then the Jiangning site is our very large-scale commercial manufacturing for payload, payload-linker, as well as newer modalities that include peptides and oligos.

Speaker #4: As noted, we now officially also transition for the Singapore side from construction to operation. So, I've also updated some of the major sites a little bit more in the next few slides.

Speaker #4: So, the first is the WuXi site. Next slide. The WuXi site basically remains the largest manufacturing site for XDC, where we have established operational excellence across all four of the ADC components.

Jimmy Li: The WuXi site basically remains as the largest manufacturing site for XDC, which we have established operation excellence across all four of the ADC components. The lower right shows that on WuXi site, we are adding more capacity. For example, the payload linker manufacturing line 2, but also two very large-scale drug product facilities, DP5 and DP6, which are scheduled to be released in early 2027 and also 2028, respectively. Next is the Singapore site. I mentioned earlier that Singapore has now achieved a major milestone from construction to operation. Also, we continue to engage global clients to visit Singapore to actively start to also schedule audits, especially for pharmas. They have to conduct the audits before they actually can sign and secure any deals for manufacturing in Singapore.

Speaker #4: And the lower right shows that on WuXi's side, we are adding more capacity—for example, the payload-linker manufacturing line two. We are also adding two very large-scale drug product facilities, DP5 and DP6, which are scheduled to be released in early 2027 and 2028, respectively.

Speaker #4: Next is the Singapore side. We mentioned earlier that Singapore has now achieved a major milestone, from construction to operation. Also, we continue to engage global clients to visit Singapore and actively start to schedule audits.

Speaker #4: Especially for pharma, they have to conduct the audits before they actually can sign and secure any deals for manufacturing in Singapore. So we continue to see a lot of interest, and we are very happy that Singapore is now ready for operation, which provides flexibility as well as supply chain resilience for clients, especially at the later and commercial stage.

Jimmy Li: We continue to see a lot of interest, and we are very happy that Singapore is now ready for operation, which provides flexibility as well as supply chain resilience for clients, especially at the later and commercial stage. The Changzhou site, as mentioned, is our very large-scale linker payload commercial site with total construction area planned at over 80,000 square meters. It is not just for highly potent linker payloads, but we also manufacture peptides, as well as oligo components for APCs and AOCs. This is part of the effort to support the accelerating growth of the payload linker part of the business, which is supported by our own innovation to bring new novel linker payload to clients and to the market, but also more and more projects also follow through the funnel to advance to PPQs.

Speaker #4: The Jiangning site, as mentioned, is our very largest-scale linker-payload commercial site, with total construction area in the plan at over 80,000 square meters.

Speaker #4: It's not just for highly potent linker payloads, but we also manufacture peptides as well as oligo components for APCs and AOCs. So this is part of the effort to support the accelerating growth of the payload-linker part of the business.

Speaker #4: And which is supported by our own innovation to bring new, novel linker-payloads to clients, to the market. But also, more and more projects are also following through the funnel to advance to PPQs.

Speaker #4: So, we also added a slide to basically update in terms of how we see the linker payload business momentum. Basically, starting in 2026, we're seeing that the linker payload business growth is outpacing the overall XDC consolidated business.

Jimmy Li: So we also added a slide to basically update in terms of how we see the payload linker business momentum. Starting in 2026, we are seeing that the payload linker business growth outpacing the overall WuXi XDC consolidated business. This is supported by more and more programs also getting to late stage. So we have signed over 10 PPQs for the payload linker component, and also the innovation to newer type of novel payloads, including, for example, linker oligo conjugates, LMPs, PROTACs, GalNAc, et cetera. So our innovation, our continued capability in terms of the peptides, oligos, as well as our aggressive expansion on the commercial capacity will ensure that the payload linker business becomes a faster growth engine for WuXi XDC Group in the next few years.

Speaker #4: And this is supported by more and more programs also getting into late stage, so we have signed over 10 PPQs for the linker-payload component.

Speaker #4: And also the innovation to newer types of payloads, novel payloads including, for example, linker-oligo conjugates, LMPs, PROTACs, and GALMAC, etc. So our innovation, our continued capability in terms of the peptides and oligos, as well as our aggressive expansion of the commercial capacity, will ensure that the payload-linker business becomes a faster growth engine for the XDC group in the next few years.

Speaker #4: We are also happy to update that since the completion of the acquisition of Biodeling by the end of March, we have actually made great progress in terms of the integration of Biodeling. We continue to see a lot of strategic alignment and also partnership continuation, with strong collaboration with the Biodeling customers, and also improvements in operations, utilization, as well as quality alignments between XDC and Biodeling continuing to benefit our global clients.

Jimmy Li: We are also happy to update that since the completion of the acquisition of BioDlink by end of March, we actually made great progress in terms of the integration of BioDlink. We continue to see a lot of strategic alignment and also partnerships, continuation of the strong collaboration with the BioDlink customers, and also the improvements on the operation, on utilization, as well as on quality alignments between WuXi XDC and BioDlink continue to benefit our global clients. As noted also, WuXi XDC signed a CT partnership with BioDlink, and also WuXi Bio has signed a CT agreement with BioDlink as well. So those will provide also a solid growth foundation for BioDlink itself in the next few years. So, that is basically a quick review of the business operations, and also Singapore progress, as well as BioDlink integration progress.

Speaker #4: As noted, XDC also signed a CCT partnership with Biodeling, and WuXi Bio has also signed a CT agreement with Biodeling as well. So those will provide a solid growth foundation for Biodeling itself in the next few years.

Speaker #4: So that's basically a quick review of the business operations, as well as Singapore progress, and also biodeling integration progress. So next, I will hand it over to Michael to go over the financial results of the first half.

Jimmy Li: Next, I will hand it over to Michael Shi to go over the financial results of the H1.

Speaker #1: Sure. Thanks, Jimmy. Next slide. Yeah, I'll just recap our financial performance for the first half of 2026. As you can see, our revenue reached RMB 3.7 billion.

Michael Shi: Sure. Thanks, Jimmy Li. Next slide. I will just recap our financial performance for the H1 2026. As you can see that our revenue reached RMB 3.7 billion. Actual exchange rate basis, our year-over-year, period-over-period growth is 37%, but on a constant exchange rate basis, it is almost 42%. I think that I will emphasize that the investor should look at the constant exchange rate to take out the fluctuation in the exchange rate. From gross profit perspective, our gross profit reached around RMB 1.4 billion, and our gross profit margin on a consolidated basis reached 37%, which compare with the same period last year is only 36.1%. I think that bearing in mind, we consolidated BioDlink and which is loss-making at this moment. So actually, we are very happy that we are still able to achieve a better gross profit margin compared with last year.

Michael Xi: Sure. Thanks, Jimmy Li. Next slide. I will just recap our financial performance for the H1 2026. As you can see that our revenue reached RMB 3.7 billion. Actual exchange rate basis, our year-over-year, period-over-period growth is 37%, but on a constant exchange rate basis, it is almost 42%. I think that I will emphasize that the investor should look at the constant exchange rate to take out the fluctuation in the exchange rate. From gross profit perspective, our gross profit reached around RMB 1.4 billion, and our gross profit margin on a consolidated basis reached 37%, which compare with the same period last year is only 36.1%. I think that bearing in mind, we consolidated BioDlink and which is loss-making at this moment. So actually, we are very happy that we are still able to achieve a better gross profit margin compared with last year.

Speaker #1: Actual exchange rate basis over year over year period over period growth is 37%. But on a constant exchange rate basis it's almost 42%. I think that I will emphasize that the investors should look at the constant exchange rate to take out the fluctuation in the exchange rate.

Speaker #1: And from a gross profit perspective, actually our gross profit reached around RMB 1.4 billion, and our gross profit margin on a consolidated basis reached 37%, which compared with the same period last year, which was only 36.1%.

Speaker #1: I think that, bearing in mind we consolidate biodeling and which is last making at this moment. So actually, we are very happy that we were able—we're still able—to achieve a better gross profit margin compared with last year.

Michael Shi: Mainly because we have a higher percentage of high-value added services in our overall revenue contribution. Also, we continue to maintain a very high utilization ratio for our capacities, and be able to further explore the operation leverage. From adjusted net profit perspective, as you can see, that is the first time for the six months, our adjusted net profit actually went beyond 1 billion RMB. Also, our adjusted net profit margin also remained very stable of around 27.8%. Next slide. Because we consolidated BioDlink starting from Q2 this year, I want to explain to every investor on a standalone basis, what WuXi XDC's financial profile look like. If you can look, our revenue on a standalone basis, still on a constant exchange rate basis, we achieved a year-over-year, period-over-period growth of around 36%.

Michael Xi: Mainly because we have a higher percentage of high-value added services in our overall revenue contribution. Also, we continue to maintain a very high utilization ratio for our capacities, and be able to further explore the operation leverage. From adjusted net profit perspective, as you can see, that is the first time for the six months, our adjusted net profit actually went beyond 1 billion RMB. Also, our adjusted net profit margin also remained very stable of around 27.8%. Next slide. Because we consolidated BioDlink starting from Q2 this year, I want to explain to every investor on a standalone basis, what WuXi XDC's financial profile look like. If you can look, our revenue on a standalone basis, still on a constant exchange rate basis, we achieved a year-over-year, period-over-period growth of around 36%.

Speaker #1: Mainly because that we have a higher percentage of high value added services in our overall revenue contribution and also we continue to maintain a very high utilization ratio for our capacities and be able to further explore the operation leverage.

Speaker #1: And from just a net profit perspective, as you can see, this is the first time, for the first six months, our adjusted net profit actually went beyond RMB 1 billion. Also, our adjusted net profit margin remained very stable.

Speaker #1: Around 27.8%. Next slide. I want to mention that we consolidated Biodeling starting from Q2 this year. So I want to explain to every investor, on a standalone basis, what WuXi XDC’s financial profile looks like.

Speaker #1: If you can look the our revenue on a standalone basis still we achieved on a constant exchange rate basis we achieved a year over year period over period growth of around 36%.

Speaker #1: And our XDC standalone revenue reached around RMB 3.6 billion. And if you look at it from a gross profit and adjusted net profit perspective, our gross profit margin increased from 36% to 37.6%, and gross profit itself reached around RMB 1.4 billion.

Michael Shi: Our XDC standalone revenue reached around 3.6 billion RMB. If you look from gross profit and adjusted net profit perspective, our gross profit margin increased from 36% to 37.6%. Gross profit itself reached around 1.4 billion RMB. Adjusted net profit reached more than 1 billion as well. Next slide. If you look the revenue breakdown, based on the project status, our pre-R&D and the post-R&D revenue breakdown remain pretty much the same compared with 2025 and 2024. I think this is particularly worth highlighting because if you look, our scale continues to grow, and a lot of programs in our portfolio actually move forward smoothly and reach a later stage. That is very important, right? We were able to continue to secure early-stage projects, which will help us to maintain the same growth momentum. This breakdown actually tells you that.

Michael Xi: Our XDC standalone revenue reached around 3.6 billion RMB. If you look from gross profit and adjusted net profit perspective, our gross profit margin increased from 36% to 37.6%. Gross profit itself reached around 1.4 billion RMB. Adjusted net profit reached more than 1 billion as well. Next slide. If you look the revenue breakdown, based on the project status, our pre-R&D and the post-R&D revenue breakdown remain pretty much the same compared with 2025 and 2024. I think this is particularly worth highlighting because if you look, our scale continues to grow, and a lot of programs in our portfolio actually move forward smoothly and reach a later stage. That is very important, right? We were able to continue to secure early-stage projects, which will help us to maintain the same growth momentum. This breakdown actually tells you that.

Speaker #1: And adjusted net profit reached more than $1 billion as well. Next slide. Yeah. And if you look at the revenue breakdown based on the project status, our pre-R&D and post-R&D revenue breakdowns remain pretty much the same compared with 2025 and 2024.

Speaker #1: I think this is particularly worth highlighting because, if you look, our scale continues to grow and a lot of programs in our portfolio actually move forward smoothly and reach a later stage.

Speaker #1: And it's very important. We were able to continue to secure early-stage projects, which will help us maintain the same gross momentum.

Speaker #1: And this breakdown actually tells you that, despite our size growing much bigger, the pre-R&D programs stay the same in terms of revenue contribution, which provides a very strong, solid foundation for continuous, fast growth going forward.

Michael Shi: Despite our size grows much bigger and the pre-R&D programs stay the same in terms of revenue contribution, which provide a very strong, solid foundation for our continuous fast growth ongoing forward. If you look the breakdown by regions, United States remains the main growth engine. In H1 this year, it accounts for 36%. If you compare with 2025 or 2024, you may say that it is dropped a little bit, but I think that is mainly because of the depreciation of U.S. dollars. In term of our constant exchange basis, it does not change that much. One more thing about Europe, I think that the percentage contribution from Europe actually increased a little bit. I think that we cannot draw the conclusion that Europe is catching up very quickly. It is just because the size is smaller, the volatility is higher compared with other regions.

Michael Xi: Despite our size grows much bigger and the pre-R&D programs stay the same in terms of revenue contribution, which provide a very strong, solid foundation for our continuous fast growth ongoing forward. If you look the breakdown by regions, United States remains the main growth engine. In H1 this year, it accounts for 36%. If you compare with 2025 or 2024, you may say that it is dropped a little bit, but I think that is mainly because of the depreciation of U.S. dollars. In term of our constant exchange basis, it does not change that much. One more thing about Europe, I think that the percentage contribution from Europe actually increased a little bit. I think that we cannot draw the conclusion that Europe is catching up very quickly. It is just because the size is smaller, the volatility is higher compared with other regions.

Speaker #1: And if you look at the breakdown by regions, still, the United States remains the main growth engine, and in the first half of this year, it accounts for 46%.

Speaker #1: If you compare with 2025 or 2024 you may say that it's dropped a little bit but I think that's mainly because mainly because of the depreciation of US dollars in terms of the on a constant exchange basis it's doesn't change that much.

Speaker #1: And one more thing about Europe. I think that the percentage contribution from Europe actually increased a little bit. I think that it doesn't—we can't draw the conclusion that Europe is catching up very quickly.

Speaker #1: It's just because the size is smaller. The volatility is higher compared with other regions, and then, indeed, in the first half, we signed a couple of larger contracts from European companies.

Michael Shi: Indeed, in H1, we found a couple of larger contracts with some European companies, that is why the contribution from Europe increased a bit. Next slide. This slide, once again, highlights the margin trend. As I mentioned before, if you look from both H1 and the full year basis, our gross profit margin increased by 1%, if you compare with 2025 full year. Our adjusted net profit margin increased by 1.6%, thanks for the continuous high utilization ratio and also high proportion from high value-added services, and also risk control on the SG&A. On a standalone basis, it maintained the same trend. You can see that our gross profit margin and adjusted net profit margin also increased quite a bit despite our size grows bigger.

Michael Xi: Indeed, in H1, we found a couple of larger contracts with some European companies, that is why the contribution from Europe increased a bit. Next slide. This slide, once again, highlights the margin trend. As I mentioned before, if you look from both H1 and the full year basis, our gross profit margin increased by 1%, if you compare with 2025 full year. Our adjusted net profit margin increased by 1.6%, thanks for the continuous high utilization ratio and also high proportion from high value-added services, and also risk control on the SG&A. On a standalone basis, it maintained the same trend. You can see that our gross profit margin and adjusted net profit margin also increased quite a bit despite our size grows bigger.

Speaker #1: That's why the contribution from Europe increased a bit. Next slide. Yeah. This slide once again highlights the margin trends. As I mentioned before, if you look at both the first half and the full-year basis, our gross profit margin increased by 1% compared with the 2025 full year.

Speaker #1: And our adjusted net profit margin increased by 1.6% thanks for the continuous high utilization ratio and also high proportion from value added higher value added services and also restriction control on the SG&A.

Speaker #1: And on a standalone basis, we maintained the same trend, and you can see that our gross profit margin and adjusted net profit margin also increased quite a bit, despite our size growing bigger.

Speaker #1: And here, I want to emphasize that, on a full-year basis, we expect that we will be able to maintain the guidance we gave previously from a revenue perspective.

Michael Shi: Here I want to emphasize that on a full year basis, we expect that we will be able to maintain the guidance we gave previously. From the revenue perspective, on a standalone basis, we think that WuXi AppTec should be able to achieve at least 35% growth on a constant exchange rate basis. On a consolidated basis, we will be able to achieve around 30% on a constant exchange rate basis. In terms of margin profile, I think that in H2, because we have the Singapore facilities ramping up, also we have the negative impact from the power link. I think that this will have a certain negative impact on our margin profile. But we hope that we can manage to maintain the same gross profit margin compared with last year.

Michael Xi: Here I want to emphasize that on a full year basis, we expect that we will be able to maintain the guidance we gave previously. From the revenue perspective, on a standalone basis, we think that WuXi AppTec should be able to achieve at least 35% growth on a constant exchange rate basis. On a consolidated basis, we will be able to achieve around 30% on a constant exchange rate basis. In terms of margin profile, I think that in H2, because we have the Singapore facilities ramping up, also we have the negative impact from the power link. I think that this will have a certain negative impact on our margin profile. But we hope that we can manage to maintain the same gross profit margin compared with last year.

Speaker #1: On a standalone basis, we think that WuXi XDC should be able to achieve at least 35% growth on a constant exchange rate basis.

Speaker #1: And on a consolidated basis, we will be able to achieve around 30% on a constant exchange rate basis. In terms of margin profile, I think that in the second half, because we have the Singapore facilities ramping up and also we have the next impact from the biodeling, I think that this will have a certain negative impact on our margin profile.

Speaker #1: But we hope that we can manage to maintain the same gross profit margin compared with last year. But it's still August right now, so I guess that we will have a better picture by the end of the year.

Michael Shi: But it is still August right now, so I guess that we will have a better picture by the end of the year. Nevertheless, I think that the margin, even it may have certain fluctuations, it shouldn't be beyond 1%, more or less. Next slide. Next slide. I also want to talk about our backlog. As you can see that besides we achieved a very good financial performance, our backlog actually grows very significantly as well. If you look compare with the same period last year, our backlog, without considering the potential milestone income, our backlog actually reached more than $2 billion US, which represent a 50.4% period-over-period growth compared with end of June last year. Then we also have around $150 million royalty incomes, milestone incomes. If we add that, we will be able to achieve 62% backlog growth period-over-period.

Michael Xi: But it is still August right now, so I guess that we will have a better picture by the end of the year. Nevertheless, I think that the margin, even it may have certain fluctuations, it shouldn't be beyond 1%, more or less. Next slide. Next slide. I also want to talk about our backlog. As you can see that besides we achieved a very good financial performance, our backlog actually grows very significantly as well. If you look compare with the same period last year, our backlog, without considering the potential milestone income, our backlog actually reached more than $2 billion US, which represent a 50.4% period-over-period growth compared with end of June last year. Then we also have around $150 million royalty incomes, milestone incomes. If we add that, we will be able to achieve 62% backlog growth period-over-period.

Speaker #1: But nevertheless, I think that the margin should—even though it may have certain fluctuations—it shouldn't go beyond, like, 1% more or less. Okay, next slide.

Speaker #1: Next slide. Yeah. And I also want to talk about our backlog. As you can see, besides achieving very good financial performance, our backlog actually grows very significantly as well.

Speaker #1: If you look the compare with the same period last year we our backlog without considering the milestone potential milestone incomes our backlog actually reached more than 2 billion US dollars.

Speaker #1: This represents a 50.4% period-over-period growth compared with the end of June last year. And then, we also have around $150 million in royalty and milestone incomes.

Speaker #1: If we add that, we will be able to achieve 62% backlog growth period over period. Among those, I think what I particularly want to highlight is that this is the first time we were able to have around $120 million in contribution from commercial backlog.

Michael Shi: Among those, I think particularly I want to highlight is that this is the first time we were able to have around $120 million in the contribution from commercial backlog. Like what we said year-over-year, we believe that we will gradually transition into a company with end-stage revenues. This is the beginning. As you can see that this year we started to record backlog from commercial stage. I think that with more programs moving to a later stage, we should be able to see larger and larger numbers from commercial stage backlog. Next slide. This slide just captures the status of our manufacturing facilities. As you can see that from the left-hand side, you can see that almost every year we will have a new facility up and running. In particular, this year, of course, it is Singapore. As you can see from number 8, number 9, number 10.

Michael Xi: Among those, I think particularly I want to highlight is that this is the first time we were able to have around $120 million in the contribution from commercial backlog. Like what we said year-over-year, we believe that we will gradually transition into a company with end-stage revenues. This is the beginning. As you can see that this year we started to record backlog from commercial stage. I think that with more programs moving to a later stage, we should be able to see larger and larger numbers from commercial stage backlog. Next slide. This slide just captures the status of our manufacturing facilities. As you can see that from the left-hand side, you can see that almost every year we will have a new facility up and running. In particular, this year, of course, it is Singapore. As you can see from number 8, number 9, number 10.

Speaker #1: As we’ve discussed year over year, we believe that we will gradually transition into a company with M-stage revenues, and this is the beginning.

Speaker #1: As you can see, this year we started to record backlog from the commercial stage, and I think that with more programs moving to a later stage, we should be able to see larger and larger numbers from commercial stage backlog.

Speaker #1: Next slide. This is the this slide just captured the our manufacturing the status of manufacturing facilities. As you can see that from the left hand side you can see that almost every year we will have a new facility up and running.

Speaker #1: In particular, this year, of course, it's Singapore. As you can see from number eight, number nine, number ten. Number eight and number nine, we—just by the end of this month—we will have BPM3 and BP4 operationally ready and released.

Michael Shi: Number 8 and number 9, by the end of this month, we will have BCM3 and BCM4 operation ready and then released. Also, before the end of this year, we will have BCM4 up and running. So, the story we told you guys, we are actually executing all those stories gradually, solid pace. I think that we are very confident that the outlook and what we will achieve on way ahead. Next slide. Those are the financials and the CapEx. Then I will transfer back to Jimmy Li about talk about the outlook.

Michael Xi: Number 8 and number 9, by the end of this month, we will have BCM3 and BCM4 operation ready and then released. Also, before the end of this year, we will have BCM4 up and running. So, the story we told you guys, we are actually executing all those stories gradually, solid pace. I think that we are very confident that the outlook and what we will achieve on way ahead. Next slide. Those are the financials and the CapEx. Then I will transfer back to Jimmy Li about talk about the outlook.

Speaker #1: And also, before the end of this year, we'll have BPM-4 up and running. So, the story we told you guys, we are actually executing all of those stories gradually, at a solid pace.

Speaker #1: And I think that we are very confident about the outlook and what we will achieve on the way ahead. Next slide. Yeah. Those are the financials and the capex, and I’ll transfer back to Jimmy to talk about the outlook.

Speaker #2: Thank you, Michael. I will close by sharing two more slides. One is an update on the overall commercial outlook, which obviously is an important part of our growth engine in the next few years.

Jimmy Li: Thank you, Michael. I will close by sharing two more slides. One in terms of the update on the overall commercial outlook, which obviously is an important part of our growth engine in the next few years. This is a similar slide that we shared earlier this year at the 2025 year-end earnings. We continue to see modality advance from ADCs to newer modalities, including XDCs, to come to commercial in the next few years. To support that growth, we continue to expand on capacity, including acquisition of the BioDlink, and also including the release of the Singapore site in August this year. We also continue to invest both in China as well as outside of China. We have mentioned and will continue to evaluate investment decision for the US and also continue to look for potential opportunities in Europe.

Speaker #2: So this is a similar slide that we shared earlier this year at the 2025 year-end earnings. We continue to see mobility advance from ADCs to newer mobilities, including XDCs, which will come to commercial in the next few years.

Speaker #2: And to support that growth, we continue to expand on the capacity, including acquisition of the Biodeling, and also including the release of the Singapore site in August this year.

Speaker #2: We also continue to invest both in China as well as outside of China, as we have mentioned, and we'll continue to evaluate investment decisions for the U.S. and also continue to look for potential opportunities in Europe.

Speaker #2: In terms of the PPQs and BOAs, we mentioned earlier that we have now completed 27 PPQ component executions. And in 2026, we actually anticipate seeing four to six BOA submissions.

Jimmy Li: In terms of the PPQ and BLAs, we mentioned earlier that we now have completed 27 PPQ component execution. In 2026, we will actually anticipate to see 4 to 6 BLA submissions. That will continue in the next few years. By 2028, we are looking at over 60 PPQ component execution and around 12 to 15 BLA submissions. The continued advancement of the newer modalities as well as also start of the commercial manufacturing and more and more programs getting to commercial stage give us the confidence that by 2030, we will be able to achieve 20% revenue, each from the newer XDC modality as well as from the commercial manufacturer. That is on the commercial side in terms of the outlook. The next slide basically summarizes the message that we shared earlier this year.

Speaker #2: So that will continue in the next few years. By 2028, we're looking at over 60 PPQ component executions and around 12 to 15 BOA submissions.

Speaker #2: So the continued advancement of the newer modalities, as well as the start of commercial manufacturing and more and more programs getting to the commercial stage, give us the confidence that by 2030, we will be able to achieve 20% revenue each from the newer XDC modality as well as from commercial manufacturing.

Speaker #2: So that's only the commercial side in terms of the outlook. And the next slide basically summarizes the message that we shared earlier this year. We continue to see our compounded growth rate staying between 30% to 35% in the next few years.

Jimmy Li: We continue to see our compounded growth rate staying between 30% to 35% in the next few years, basically outpacing the industry growth. To enable and to achieve that, we need to have a full synergy growth for the R, the D, as well as the N commercial manufacturing. On the R, we continue to innovate, continue to help clients to develop best-in-class ADCs and XDCs. On the D, obviously, help clients to move assets into first-in-human at the fastest possible speed and in high quality. For N, we continue to capture opportunities down the funnel. We need to be right first time for every single molecule that goes into BLA and inspection. We will continue to expand our capacity to support the ADCs as well as the XDC modalities moving into commercial stage.

Speaker #2: Basically outpacing the industry growth. And to enable and to achieve that we need to have a full signature growth for the R the D as well as the M commercial manufacturing.

Speaker #2: So on the R we continue to innovate continue to help clients to develop the best in class ADCs and XDCs. And on the D obviously help clients to move the assets into first in human at the fastest possible speed and in high quality.

Speaker #2: For M, we continue to capture opportunities down the funnel. We need to be right the first time for every single molecule that goes into BOA and inspection.

Speaker #2: And we'll continue to expand our capacity to support the ADCs as well as the XDC modalities moving into the commercial stage. With that, I'd like to end the presentation on the next slide.

Jimmy Li: With that, I would like to end the presentation in the next slide, basically show some of the key take-home messages to share with investors. Next slide. Basically, we see the industry maintaining a very strong momentum, and we are glad that the BioDlink acquisition has complete, and integration has gone quite smoothly since the acquisition. We see more and more innovation and advancement of the newer type of bioconjugates, including bispecific dual-payload, but also AOCs, APCs. As mentioned, we see the payload linker business growth outpacing the overall XDC growth starting in 2026. As also noted, backlog continue to be strong, and we will also make it a priority to increase backlog for Singapore facilities. Also the CMO commercial business, one-stop, continue to maintain a very strong momentum. We start to also see commercial orders coming to our backlog starting in 2026.

Speaker #2: Basically, here are some of the key take-home messages to share with investors. Next slide. We continue to see the industry maintaining very strong momentum. We are glad that the Biodeling acquisition is complete, and integration has gone quite smoothly since the acquisition.

Speaker #2: We see more and more innovation and advancement in newer types of bioconjugates, including bispecific dual payloads, but also AOCs and APCs. And as mentioned, we see the link of payload business growth outpacing the overall XDC growth starting in 2026.

Speaker #2: And as also noted, backlog continues to be strong, and we will also make it a priority to increase backlog for Singapore facilities. Also, the CDMO commercial business ramp-up continues to maintain very strong momentum, and we have started to see commercial orders coming into our backlog, starting in 2026.

Speaker #2: So those are the key takeaways for the earnings report. That completes the management presentation, and we're more than happy to take questions if you have any.

Jimmy Li: Those are the key takeaways for the earnings call. That completes the management presentation, and we are open and more than happy to take questions if you have.

Speaker #3: Yeah. So, thank you, Jimmy and Michael. Let's move to the Q&A session. If you have any questions, please just raise your hand and we will unmute you.

Chris Fang: Yeah. Thank you, Jimmy and Michael Shi. Let's move to the Q&A session. If you have any questions, please just raise your hand and we will unmute. Okay, so the next question is coming from UBS, Lawrence. Lawrence, please go ahead. Operator, please unmute him. Thank you.

Speaker #3: Okay, so the next question is coming from Morgan Stanley. Lawrence, please go ahead. Operator, please unmute him. Thank you.

Jimmy Li: Is Lawrence unmuted already?

Speaker #1: Lawrence , can you hear us ? Yes . Okay . Go ahead . Okay .

Chris Fang: Lawrence, can you hear us?

[Analyst] (UBS): Yes.

Chris Fang: Yes. Okay.

[Analyst] (UBS): Okay.

Chris Fang: Please go ahead.

[Analyst] (UBS): Great. Okay. Thank you. First, congrats to management for these great results. I just have two quick questions. You signed your first ever licensing deal with Earendil Labs, which is an AI-empowered protein therapeutics company, right? Can you talk briefly about the potential for AI to help design biologics, in particular for bioconjugates, and whether AI can broaden the project funnel for WuXi XDC? That is my first question, the potential for AI. My second question is, for the first time you added a milestone backlog to your total backlog, right? As Jimmy Li mentioned, there is one more deal coming with a European biotech company, right? Can we touch a bit on the timeframe for these milestone payments and when can we expect the gross margin to improve from these IP incomes? Thank you.

Speaker #2: Thank you , thank you . First , congrats to management for these great results . I just have two quick questions . So you signed your first ever licensing deal with Arundel Labs , which is an AI empowered protein therapeutics company .

Speaker #2: Right . Can you talk briefly about the potential for AI to , to , to help design biologics in particular for Bioconjugates and whether AI can , can broaden the project funnel for WuXi XDC .

Speaker #2: So that's my first question . The potential for AI . And my second question is for the first time , you added a milestone backlog to your total backlog , right ?

Speaker #2: And as Jimmy mentioned , there's one more deal coming with a European biotech company , right ? So can we can we touch a bit on the time frame for these milestone payments ?

Speaker #2: And , you know , when can we expect the the gross margin to improve from these IP incomes ? Thank you .

Speaker #3: Yeah

Jimmy Li: Yeah. Thank you, Lawrence, for the questions. On the milestone timing and the impact on margin, as you may be aware, the timing of the milestone payments are highly unpredictable, if you will, because it is always project specific and client specific in terms of when and how they might move the programs forward. We are not adding any of those into our current management guidance. If any of those happens, it will be basically a bonus upside to any guidance we provide. On the AI enabling innovation, we do see that the industry is actively embracing AI to help improving the efficiency, but also to help speed up innovation for many of the different modalities, but also for bioconjugates as well.

Speaker #4: Thank you , Lawrence , for the questions . Only milestone timing and the impact on margin . You know , as you may be aware , you know the timing of the milestone payments highly sort of unpredictable .

Speaker #4: If you will , because it's always , a , you know , project specific and client specific in terms of when and how they might move the program forward So we are not adding any of those into our current , you know , management guidance .

Speaker #4: So if any of those happens , you know , it will be basically a bonus upside , you know , to , to any guidance we provide .

Speaker #4: And then on the AI enabling innovation , we do see that , you know , the industry is actively embracing AI to help , you know , improving the efficiency , but also to help speed up , innovation in , you know , for , for many of the different modalities that also , you know , for , for bioconjugates as well So in addition to some of the biotechs activity , deploying AI , we also see some tech companies , you know , basically getting into the , you know , biotherapeutics field .

Jimmy Li: So in addition to some of the biotechs actively deploying AI, we also see some tech companies basically getting into the biotherapeutics field and actively basically introducing new potential assets, molecules into the bioconjugate space. To that end, we have actually engaged and also started some of the services with such companies that are actively exploring the use of AI for innovation.

Speaker #4: And actively basically introducing new potential assets molecules into the bioconjugate space . So to that end , we have actually engaged and also started some of the services , you know , with such companies that actively exploring the use of AI for innovation

Speaker #2: Okay. Thank you very much.

[Analyst] (UBS): Okay. Thank you very much.

Speaker #1: Okay. Thank you, Lawrence. And then the next question is coming from Goldman. Chris—Chris, please go ahead.

Chris Fang: Okay. Thank you, Lawrence. The next question is coming from Goldman, Chris Pan. Chris, please go ahead.

Speaker #5: Thank you . For taking my questions . So my question is on the market share . I think we have a record high on CMC , projects at 51 at first half .

Chris Pan: Thank you, management, for taking my questions. My question is on the market share. I think we have a record high on ICMC projects at 51 at H1. What do we estimate the market share for in terms of these new projects? Also for the full year, do we have a sense roughly how many new projects we could get for this year, and also for next year? Thank you.

Speaker #5: What do we estimate the market share for, in terms of these new projects, and also for the full year? Do I have a sense, roughly, how many new projects we could get for this year and also for next year?

Speaker #5: Thank you .

Speaker #4: Yeah . Yeah . Thank you Chris . I think in terms of the I see , so we we made a big jump in 2025 .

Jimmy Li: Yeah. Thank you, Chris. I think, in terms of the ICMCs, we made a big jump in 2025, right? Remember 2023, 2024, our ICMC signed was right around 50 for the 2 years. Then 2025, we jumped to 70. This year, H1 alone, we signed 51. So we see the momentum actually continue to be quite strong. For the full year, I think we will sign, anticipating at least 80, another step up from 2025. It's not easy to predict exactly how many more, but it will be more than 2027, for sure. Sorry, what was the first question again?

Speaker #4: Right . Remember 2023 2024 . Our , you know , I signed was right around 50 . For two years . And then 2026 2025 .

Speaker #4: Sorry , 2025 . We jump you know , to 70 and you know , this year , first half alone , we signed 51 .

Speaker #4: So we see the momentum actually continue to be quite strong for the full year. I think we will sign—anticipating at least 80, you know, another step up from 2025.

Speaker #4: But you know it's not a it's not easy to predict . Exactly . You know , how many more you know , but you know , it will be more than 2027 for sure And so what was the first question again

Speaker #5: Oh, how about the market share? Can you estimate?

Chris Pan: Oh, how about the market share, do we estimate?

Jimmy Li: Oh. Okay. We are not calculating market share in terms of the exact percentage. But in terms of the ICMCs, I think we continue to see probably 40 plus minus percentage. There are a few different metrics to look at. For example, we mentioned that we have helped clients submitted 160 INDs cumulatively. Globally, I think there are around 300 to 400 assets in the clinics. Right. That gives you some indication in terms of total market share in terms of active clinical-stage programs. But also the number of first-in-human trials, we also continue helping clients submitting more and more each year. Last year, it was close to 40, and this year, H1 alone, we helped submitted 27. So that's another indicator that we will closely monitor each year and each half year.

Speaker #4: Okay , we , we , we , we are not calculating market share in terms of the exact percentage , but in terms of the I , I think We we continue to see probably 40 plus minus percentage , you know , that a few different metrics to look at .

Speaker #4: For example , we mentioned that we have a help clients submitted 160 INDs Accumulatively . Right . So globally , I think they are around 300 to 400 .

Speaker #4: Assets in in the clinics . So that gives you some indication in terms of total market share , in terms of active clinical stage progress , but also the number of , you know , first in human trials .

Speaker #4: We also continue some helping clients submitting more and more each year . Last year , it was , you know , fully close to close to 40 .

Speaker #4: And this year , first half alone , will have submitted 27 . So that's another , you know , indicator that we will closely monitor , you know , each year and which happened .

Speaker #4: So not , not in terms of exact number of market share , but I think we continue to , we believe that we continue to expand our market share .

Jimmy Li: Not in terms of exact number or market share, but I think we believe that we continue to expand on market share, and probably we will be able to provide a more quantitative update at the year-end timing.

Speaker #4: And then probably will be to we'll be able to provide a more , you know , quantitative update at the year end and year end timing

Speaker #5: Thank you, Jimmy. That's quite helpful.

Chris Pan: Thank you, Jimmy. That is quite helpful.

Speaker #1: Okay . Thank you , Chris . And then the next question , invite , please . Tony from Macquarie Tony , please unmute .

Chris Fang: Okay. Thank you, Chris. The next question in line, please, Tony from Macquarie. Tony, please unmute, operator. Thank you.

Speaker #1: Operator: Thank you. Hey.

[Analyst] (Macquarie): Yeah. Can you guys hear me?

Speaker #5: Can you .

Speaker #4: Guys hear me

Speaker #1: Yes . Go ahead .

Chris Fang: Yes, go ahead.

Speaker #6: Okay . Perfect . Yeah . Yeah Congratulations on a very strong first half print . Just a couple from me . So you guys have a site at the Hefei , right .

[Analyst] (Macquarie): Okay, perfect. Yeah. Congratulations on a very strong H1 print. Just a couple from me. You guys have a site at Hefei, right, which you mentioned a couple of times, for peptide and oligo synthesis. Just want to ask you, what is the consideration of building this in-house versus subcontracting to your sister company, WuXi AppTec? They are obviously quite strong in this space, right? That is my first question. The second one is on slide 15. Jimmy Li has been talking about this slide for the last few presentations. I noticed the AOC and the APC grew very quickly compared to six months ago, but DAC declined quite a bit from 32% to 24%. I just want to get some color about what is behind the drop in DAC. Yeah, thank you.

Speaker #6: Which you mentioned a couple of times for peptide and oligo synthesis. So I just want to ask you, what is the consideration of building this in-house versus subcontracting to your sister company, WuXi Tech?

Speaker #6: You know they are obviously quite strong in this space . Right . So that's my first question . The second one is on the slide number 15 .

Speaker #6: Jimmy has been talking about this slide for the last few presentations. I noticed the AOC and the APC grew very quickly compared to six months ago.

Speaker #6: But DASC declined quite a bit from 32% to 24%. I just want to get some color about what's behind the drop in DAC.

Speaker #6: Yeah . Thank you

Speaker #4: Da da . See dropping the a lot of the 3100 Bioconjugate the team made in the first half .

Jimmy Li: DAC dropping, Tony, you mean out of the 3,100 bioconjugate the team made in the H1, is that right?

Speaker #6: Correct . Yeah . The percentage dropped quite a bit . .

[Analyst] (Macquarie): Correct. Yeah.

Jimmy Li: Okay.

[Analyst] (Macquarie): The percentage, yeah, dropped quite a bit.

Speaker #4: Right. Yeah, that is actually interesting. I mean, it stays quite active, right? You know, 24% is still quite a bit.

Jimmy Li: Right. Yeah, DAC is actually interesting. It stays quite active, right? 24% still quite a bit. It stays quite active at the early discovery stage, but we have not seen as many DACs moving into the clinics in the past few years. Basically, the development challenges for DAC remains somewhat higher than other novel type of modalities. I would say it is still very active at the early discovery stage. But in terms of moving to the CMC, we have not seen as many compared to, for example, AOCs and APCs. But that is a space that I think companies continue to invest and continue to show a lot of interest and passion. Then the other question is, Tony, can you-

Speaker #4: Still quite active at the early discovery stage. But we have not seen as many DACs moving into the clinics in the past few years.

Speaker #4: So basically the development challenges for DAC , you know , remains somewhat higher than other , you know , novel type of modalities .

Speaker #4: So I would say it's still very active at the early discovery stage . But in terms of moving to the CMC , we have not seen as many compared to , for example , AOC and APCs .

Speaker #4: But that's a space that I think , you know , companies continue to invest , continue to show a lot of interest and passion And then the other the other question is , sorry , Tommy , can you okay .

[Analyst] (Macquarie): Okay. Yeah. It is about-

Speaker #6: Yeah ,

Jimmy Li: Well, we continue to work a lot with client business of WuXi AppTec, right? Many of our clients continue to tap into the HITES capacity and capability for developing the APCs and AOCs. At the same time, we do see benefits of having some in-house capabilities and capacity. Obviously, some clients wanted to see that fully integrated solution offering. Some also wanted to start at the earlier stage, for example, at the discovery service stage where the integrated capability can really help to speed up and made it easier for discovery stage efforts. So, I would say that we continue to leverage the HITES, but at the same time, having some internal in-house capability and capacity does provide some solutions to clients who desire to have so.

Speaker #4: Okay Yeah . Well , we continue to work a lot with , you know , business of which Aptech by many of our clients are continue to tap into the ties capacity and capability for developing the APCs and AOC's at the same time , you know , we do see benefits of having , you know , some in-house capabilities and capacity .

Speaker #4: You know , obviously some clients wanted to see that , you know , fully integrated solution offering , you know , some also wanted to start at the earlier stage , for example , at the discovery service stage , you know , will the integrated capability can really help to speed up and made it easier for discovery stage efforts .

Speaker #4: So , you know , I would say that , you know , we continue to , you know , leverage the types , but , you know , at the same time , having , you know , some internal in-house capability and capacity .

Speaker #4: Does provide some solutions to clients who desire to have...

Speaker #6: Very clear. Yeah. Thank you very much.

[Analyst] (Macquarie): Very clear. Thank you very much.

Speaker #1: Okay . Thank you . Tommy . And then the next question is coming from Nomura . Jalyn . Jalyn , please go ahead .

Chris Fang: Okay. Thank you, Tony. The next question is coming from Nomura, Jialin. Jialin, please go ahead.

[Analyst] (Nomura): Thank you, Grace. Thank you, Grace. Good evening, management. I have three questions. The first one is on the backlog growth. I did a calculation that the new backlog you signed in the H1 of this year grew by over 40% year-on-year. Could you give us some colors on what part of the business, the pre-R&D or post R&D, drive this new order growth in the H1? The second one is that we just noticed your parent company, WuXi Biologics, also released results and also left their full-year guidance a bit. Do we expect you to lift your full-year revenue guidance as well? Because we know you are the growing engines for the parent company during the past years. The last question is regarding the key ADC products. The market has closely monitored.

Speaker #2: Thank you Thank you . Chris . Good , good evening . Management . I have three questions . The first one is on the backlog growth .

Speaker #2: I did a calculation that the new backlog you said in the first half of this year grew by over 40% year-on-year.

Speaker #2: So could you give us some color on what part of your business—the priority outpost R&D—drove this new order growth in the first half?

Speaker #2: The second one is that we just notice your , your your parent company , which also release results . And also left their full year guidance a bit .

Speaker #2: So the way expected you to . Lift your your full year revenue guidance as well , because we know you are kind of the growing , growing engines for the parent company during the past years , the last question is regarding the key ADC products .

Speaker #2: The market has a closely monitored [molecule]. Can you give us some color on the progress of that molecule? So that's my three questions.

[Analyst] (Nomura): Can you give us some color on the progresses on that molecule? That is my three questions. Thank you.

Speaker #2: Thank you

Speaker #4: Yeah. Michael, if you can take this on, I can add as well. Okay.

Chris Fang: Yeah. Michael, if you can take on this, I can add.

Michael Shi: Okay. For the backlog, the newly signed contracts, I think that around 50%, or a little bit less than 50%, are actually coming from pre-R&D. A lot of them still coming from post R&D. In particular, I think that without taking commercial and also the potential milestone come into the consideration. If you are taking commercial backlog into consideration, then obviously the post R&D will carry much more weight compared with pre-R&D. But like what I said, if you look at the revenue breakdown and also the newly signed contract numbers, you see that we maintain a very strong momentum in terms of securing the early-stage projects. That is one thing highlights our core competitive strengths, but also, it is simply just a representation of the growth and momentum of this industry. Okay. That is for the answer to your first question.

Michael Xi: Okay. For the backlog, the newly signed contracts, I think that around 50%, or a little bit less than 50%, are actually coming from pre-R&D. A lot of them still coming from post R&D. In particular, I think that without taking commercial and also the potential milestone come into the consideration. If you are taking commercial backlog into consideration, then obviously the post R&D will carry much more weight compared with pre-R&D. But like what I said, if you look at the revenue breakdown and also the newly signed contract numbers, you see that we maintain a very strong momentum in terms of securing the early-stage projects. That is one thing highlights our core competitive strengths, but also, it is simply just a representation of the growth and momentum of this industry. Okay. That is for the answer to your first question.

Speaker #6: For the

Speaker #4: Backlog .

Speaker #6: The newly signed contracts, I think that they're around 50%.

Speaker #4: Or a little bit less.

Speaker #6: More than 50% are actually coming from newly

Speaker #4: From

Speaker #6: Pre-ind . And then a lot of them are still coming from closer . And in particular , I think that without taking commercial and also the , the milestone potential milestone come into the consideration .

Speaker #6: If you take in commercial back into consideration , then obviously that the post on the carry much more weight . Compared with pre and .

Speaker #6: But like what I said , if you look at the revenue breakdown and , and also the newly signed contract numbers , we see that we maintain a very strong momentum in terms of securing the early stage projects .

Speaker #6: And that's one thing that highlights our, you know, core competitive strengths, but also it's simply just a representation of the growth momentum of this industry.

Speaker #6: Okay . That's that's for the first , the answer to your first question . Second , in terms of cadence , I think that we are , you know , we already have a very high growth rate , 35% .

Michael Shi: Second, in terms of guidance, I think that we already have a very high growth rate, 35%. I think that we will not further increase our guidance. Bear in mind, I think that all of our capacities are actually running a high utilization ratio. That is why it is actually not that easy for us to further increase the growth guidance. Hopefully, with the release of the new production facilities by the end of this year, and then around Q2 next year, we will be able to pick up the growth momentum again. Okay. That is the answer to your second question. In short, we are not going to increase the guidance. We will maintain a 35% top-line growth on a standalone basis, and 40% growth on a consolidated basis. The third question. Sorry, what is the third question again? I forgot.

Michael Xi: Second, in terms of guidance, I think that we already have a very high growth rate, 35%. I think that we will not further increase our guidance. Bear in mind, I think that all of our capacities are actually running a high utilization ratio. That is why it is actually not that easy for us to further increase the growth guidance. Hopefully, with the release of the new production facilities by the end of this year, and then around Q2 next year, we will be able to pick up the growth momentum again. Okay. That is the answer to your second question. In short, we are not going to increase the guidance. We will maintain a 35% top-line growth on a standalone basis, and 40% growth on a consolidated basis. The third question. Sorry, what is the third question again? I forgot.

Speaker #6: I think that we we will not further increase our guidance . Bear in mind , I think that , you know , or , of our capacities are actually running high utilization ratio .

Speaker #6: That's why , you know , it's it's actually not that easy for us to further increase the , the growth guidance , hopefully with the release of the new production facilities by the end of this year and then around , you know , second , second quarter next year , we will be able to pick up the growth momentum again .

Speaker #6: Okay . That's for the answer to the second question . So in short , we are not going to increase the the guidance .

Speaker #6: We will maintain a certified top-line growth on our standalone basis and 40% growth on a consolidated basis. The third question,

Speaker #4: Sorry ,

Speaker #6: What's the third question ?

Speaker #4: Again , I forgot

[Analyst] (Nomura): The key ADC products the market has closely monitored.

Speaker #2: The key ADC product. The market has been closely monitored.

Speaker #4: All the . The . So you are talking about the Merck project , right . I think we already told the market You know , the at this moment we are the sole supplier for their clinical supply .

Michael Shi: Oh. So you are talking about the Merck project, right? I think that we already told the market. At this moment, we are the sole supplier for their clinical supply. But then for the commercial, I think that they actually choose another vendor, because that we have not built our track record in commercial stage yet. But, like what I keep on telling everyone, do not focus on just one project. We do not count on a single project as well. What we should focus on is the fact that we already signed 21 PPQ projects. One-third of those are actually for first-line indications, and also I think around nine projects are actually international projects. Also, we already have two commercial projects on hand. So I think along the time, we will be able to build our commercial-stage track record. It is just a matter of time.

Michael Xi: Oh. So you are talking about the Merck project, right? I think that we already told the market. At this moment, we are the sole supplier for their clinical supply. But then for the commercial, I think that they actually choose another vendor, because that we have not built our track record in commercial stage yet. But, like what I keep on telling everyone, do not focus on just one project. We do not count on a single project as well. What we should focus on is the fact that we already signed 21 PPQ projects. One-third of those are actually for first-line indications, and also I think around nine projects are actually international projects. Also, we already have two commercial projects on hand. So I think along the time, we will be able to build our commercial-stage track record. It is just a matter of time.

Speaker #4: But then for the commercial , I think that they actually , you know , they actually choose another vendor because we we haven't haven't build our track record in M stage yet , but like what I keep on telling everyone , don't focus on just one , one project .

Speaker #4: I mean , like . You know , and we , we don't count on a single project as well . What you should focus on is that the fact that we already signed 21 PBC projects , one third of those are actually for first line indications .

Speaker #4: And also around , I think around 7 or 9 projects are actually international projects . And , and also we already have . Two commercial hand .

Speaker #4: So I think along the time we will be able to build our , you know , commercial stage track record , it's just a matter of time .

Speaker #4: And also, in addition to that, what I want you guys to take away is that we believe there will be a structural issue in some of the supply and demand.

Michael Shi: And also, in addition to that, I want you guys to take away is that, we believe there will be a structural issue in terms of supply, demand, and there is a gap in terms of supply capacity. So when more and more ADC drugs come online, or reach the commercial stage, the situation in terms of supply shortage will be more severe. And like what I said, it is just a matter of time for us to get those end-stage project ready. Whether the first one, second one, third one, does not really matter. We will have a fair market share. Okay.

Michael Xi: And also, in addition to that, I want you guys to take away is that, we believe there will be a structural issue in terms of supply, demand, and there is a gap in terms of supply capacity. So when more and more ADC drugs come online, or reach the commercial stage, the situation in terms of supply shortage will be more severe. And like what I said, it is just a matter of time for us to get those end-stage project ready. Whether the first one, second one, third one, does not really matter. We will have a fair market share. Okay.

Speaker #4: And there's a gap in terms of supply capacity . So when our a more and more ADC drugs come online or reach the commercialization stage , the situation in terms of supply shortage will be more severe .

Speaker #4: And like what I said , I mean , it's just a matter of time for us to get the , the first stage project , whether the number Is the first one , second one , the third one doesn't really matter .

Speaker #4: I mean, we will have a fair market share. Okay.

Speaker #2: Okay. Thank you, Michael, and congrats on your results again.

[Analyst] (Nomura): Okay. Thank you, Michael, and congrats for your results again.

Speaker #1: Okay . Then take the last question of tonight's call . It's from HSBC . Linda's team , Andrew . Andrew , please go ahead

Chris Fang: Okay. I will then take the last question of tonight's call. It is from HSBC, Linda's team. Andrew. Andrew, please go ahead.

Speaker #7: Thank you . Management team for taking my question . It's Andrew from HSBC . So just two questions from me . So firstly regarding the commercial outlook of Singapore side , what's your can .

[Analyst] (HSBC): Thank you, management team, for taking my question. It is Andrew from HSBC. So just two questions from me. So firstly, regarding the commercial outlook of Singapore site. Can you give us some color on the order inflows and also the order negotiation, as well as the impact to the commercial margin in the coming few quarters or years? And second question is regarding the competitive landscape. So we are seeing companies like Lonza and Samsung Biologics are building ADC capacities, which is set to be released in the coming few years. So, what do you think is the commercial outlook for the ADC or the CDMO AAV in the coming few years? Thank you.

Speaker #7: Can you give us some color on the order inflows and also the other inhibitions, as well as the impact to the commercial margin in the coming few quarters or years?

Speaker #7: And the second question is regarding the competitive landscape . So what do you think . So we are seeing companies like Lonza and Samsung Bio are building ADC capacities , which is set to be released in the coming few years .

Speaker #7: So, what do you think is the commercial outlook for the ADC area, CDMO area in the country?

Speaker #3: Thank you Yeah .

Jimmy Li: Yeah. The competitive landscape has not changed much over the past couple years, right? Lonza continues to be one of the industry leaders. They have been in the space quite a bit longer than XDC. But as we have shown in the past few years, our market share actually continued to expand. Based on 2025 year-end result, we anticipated that we were already there with Lonza, head to head in terms of the overall revenue market share. That hasn't changed much. I think we continue to believe that we have the best business model in terms of supporting innovation, but also in helping clients to move the innovation to first-in-human, and also continue to build capacity to support the commercialization.

Speaker #4: The competitive landscape has not changed much over the past couple of years. Right. Lonza continued to be one of the industry leaders.

Speaker #4: You know , they have been in the space quite a bit longer than , you know , FDC . But as we have shown in the past few years , our market share actually continue to expand , right ?

Speaker #4: We based on 2025 , year end result , we anticipate that we will already we will already , you know , there with the head to head in terms of the overall revenue market share .

Speaker #4: So that hasn't changed much . And I think we continue to believe that we have the best business model in terms of supporting innovation , also helping clients to move the innovation to first in human and also continue to build capacity to support the , you know , commercialization and the Singapore order .

Jimmy Li: The Singapore order, we also explained on several occasions that the Singapore ramp-up will be slower than typical capacities in China, especially in WuXi, because it is a brand-new site in a brand-new region, and also it's intended mainly for late stage and commercial. As such, clients will need to get familiar with the site. Clients wanted to see that we have execution track records for Singapore. Even though it's designed to be a mirror copy of the WuXi site, clients tend to want to see some evidence of execution success. That's why we have been actively engaging clients to visit Singapore to see how it's designed and how the past two years we have executed, from construction to commissioning and now to full release. Also we start to see MNC clients actually scheduling internal audits, quality audits.

Speaker #4: We also explain , you know , in several occasions that the Singapore ramp up will be slower than , you know , typical , you know , capacities in China , especially in Asia , because it is a brand new site in , you know , a brand new region .

Speaker #4: And also it's intended mainly for late stage and commercial . So as such , you know , clients will need to , you know , get familiar with a side kinds wanted to see that , you know , we have execution track records for Singapore , even though it's designed to be newer copy , you know , of the site , but clients tend to wanted to see some evidence of execution success .

Speaker #4: So that's why we have been actively engaging clients to visit Singapore to see how it's designed, and how over the past two years we have executed from construction to commissioning and now to full release. And also, we are starting to see more clients actually, you know, scheduling internal audits, quality audits for MNCs.

Jimmy Li: For MNC, that's typically a prerequisite before they actually start official orders. Basically, I think the take-home message is that, Singapore ramp-up will take more time. What's important, I think, is the strategic value, the strategic importance of the Singapore site coming into operation, because it gives clients a lot of flexibility. More importantly, it gives clients a lot of comfort to not having to go outside to find a second supplier or to find alternative supplier, because they know that our Singapore site is already coming into operation. Our Singapore site is designed as a mirror copy so that if there's ever a need to expand to Singapore or to move the effort to Singapore, that we are well positioned to help realize that at a very fastest speed. So that strategic value, actually, I think it's also quite important.

Speaker #4: That's typically a prerequisite before they actually start official , you know , orders . So , you know , basically , I think the take home message is that , you Singapore ramp up will take more time .

Speaker #4: And what's important , I think , is the strategic value , the strategic sort of importance of the Singapore site coming , you know , into operation because it gives clients a lot of flexibility , but also more importantly , it gives clients a lot of comfort to , you know , not having to go outside to find , you know , the second supplier or to find alternative supplier because , you know , they know that , you know , Singapore side , this already coming into operation Singapore side , this design as a new copy .

Speaker #4: So that if there is ever a need to expand to Singapore or to , you know , move the asset to Singapore that , you know , we are well positioned to help , you know , realize that , you know , at a very fast speed .

Speaker #4: So so that's strategic value , actually , you know , I think it's , it's also quite important . We don't have much pressure to try to ramp up , you as quickly as we typically do in which side , you know , we wanted to start to build execution record .

Jimmy Li: We don't have much pressure to try to ramp up as quickly as we typically do in WuXi site. We wanted to start to build execution record, and then continue to engage clients, and then hopefully, more significant backlogs will start to build up by early next year.

Speaker #4: And then continue to engage clients, and then hopefully, you know, more significant backlogs will start to build up, you know, by early next year.

[Analyst] (HSBC): All right. Thanks, Jimmy and team. That is all from me. Thank you.

Speaker #7: All right . Thanks , Jimmy . And that's all from me . Thank you .

Speaker #1: Yeah . Thank you . So I think I still see many of the questions from online , but unfortunately , due to the time constraints , we cannot cover all of them .

Chris Fang: Yeah, thank you. I still see many of the questions from online, but unfortunately, due to the time constraints, we cannot cover all of them for today's call. Hopefully, we can get more touch base on the next few days' roadshow as well. Maybe I just turn the micro to Jimmy to share the closing remark as well. Thank you.

Speaker #1: For today's call . Hopefully we can get more touch base on the next few days down the road . As well . So maybe I just turn the micro to the Jimmy and then to close to share the closing remarks as well .

Speaker #1: Thank you .

Speaker #4: Yeah , yeah . Thank you again everyone for , you participating in the call . I wanted to again leave a key messages as shown on the summary slide that we see the industry maintaining a very strong momentum , especially with more and more innovations coming into the space .

Jimmy Li: Yeah. Thank you again, everyone, for participating in the call. I wanted to again leave key messages as shown on the summary slide, that we have seen the industry maintaining a very strong momentum, especially with more and more innovations coming into the XDC space. We are very happy with the progress of the BioDlink integration. Very happy that Singapore has now come to operation, which again, provides great flexibility and supply chain resilience to our global clients. We are seeing acceleration of our payload linker business, which will help to drive and maintain strong growth for XDC consolidated group. We start to basically have commercial backlogs come in, which again is something that we wanted to see and we are happy to see, and we will demonstrate more and more commercial success starting in 2027 and further down the road.

Speaker #4: We are very happy with the progress of the integration . Very happy that Singapore has now , you know , come to operation , which again , you provides great flexibility and supply chain resilience to our global clients .

Speaker #4: We are seeing , you know , acceleration of linker , the business , you know , which will help help to , to drive , you know , and maintain strong growth for FTC consolidated Group .

Speaker #4: And we start to basically have a commercial backlog coming , which again , is , you know , something that we wanted to see and we're happy to see .

Speaker #4: And we will , you know , demonstrate more and more commercial success , you know , starting in 27 . And further down the road .

Speaker #4: So that's why we maintain our guidance and confidence that by 2030, we will achieve 20% of the SSC modality, as well as 20% on commercial and business.

Jimmy Li: That is why we maintain our guidance and confidence that by 2030, we will achieve 20% of the XDC modality, as well as 20% on commercial N business. Again, thank you for participating, and we look forward to talking with many of you in the next few days.

Speaker #4: So again, thank you for participating. We look forward to talking with many of you in the next few days.

Chris Fang: Okay, so thank you, all of you, and that concludes for today's earnings call. Thank you.

Operator: Goodbye

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