Executive Summary
WuXi XDC Cayman Inc reported a strong QQ2 2024 with notable top-line growth and an expansion of profitability metrics, underpinned by a favorable mix of services and scale advantages in its CRO/CMO business. Revenue reached 832.60 million CNY, up 64.6% year-over-year, while gross profit rose 141.1% to 267.67 million CNY and gross margin improved to 32.15%. Operating income was 192.56 million CNY (operating margin 23.13%), supported by 88.30 million CNY of other income and expenses that buffered pretax profitability to 280.86 million CNY and led to net income of 244.11 million CNY (net margin 29.32%). Earnings per share stood at 0.19 CNY, up 116.7% year-over-year. Cash flow dynamics show negative operating cash flow of 112.33 million CNY, driven largely by non-cash and working capital effects, and capital expenditure of 260.92 million CNY, resulting in negative free cash flow of 373.25 million CNY for the quarter. The balance sheet remains liquidity-rich with substantial cash balances and a low debt burden, yielding a net debt position of approximately -3.41 billion CNY and a current ratio of 4.13x. Management commentary on QQ2 2024 and the broader market context was not provided in the supplied transcript, limiting direct quotes. Nevertheless, the quarterly performance signals a resilient growth trajectory in a structurally favorable ADC/CDMO market, though near-term cash flow headwinds from capex investments warrant close monitoring.Overall, the company demonstrates strong profitability, solid balance sheet strength, and favorable industry-driven growth, but investors should watch for capex-driven cash burn, order intake visibility, and competitive dynamics in the CRO/CMO space.
Key Performance Indicators
Key Insights
Revenue: 832,599,500 CNY (+64.59% YoY; QoQ 0.00%)
Gross Profit: 267,665,500 CNY; Gross Margin: 32.15% (YoY +141.1%; QoQ 0.00%)
Operating Income: 192,556,500 CNY; Operating Margin: 23.13% (YoY +89.25%; QoQ 0.00%)
Net Income: 244,114,000 CNY; Net Margin: 29.32% (YoY +152.86%; QoQ 0.00%)
EPS: 0.19 CNY (YoY +116.65%; QoQ 0.00%)
EBITDA: 217,622,500 CNY; EBITDA Margin: 26.14% (as reported: 0.2614)
Tax Rate (pre-tax to net): 13.84% (effective tax rate) ~ 0.131
Cash Flow Metrics: Net cash from operating...
Financial Highlights
Revenue: 832,599,500 CNY (+64.59% YoY; QoQ 0.00%)
Gross Profit: 267,665,500 CNY; Gross Margin: 32.15% (YoY +141.1%; QoQ 0.00%)
Operating Income: 192,556,500 CNY; Operating Margin: 23.13% (YoY +89.25%; QoQ 0.00%)
Net Income: 244,114,000 CNY; Net Margin: 29.32% (YoY +152.86%; QoQ 0.00%)
EPS: 0.19 CNY (YoY +116.65%; QoQ 0.00%)
EBITDA: 217,622,500 CNY; EBITDA Margin: 26.14% (as reported: 0.2614)
Tax Rate (pre-tax to net): 13.84% (effective tax rate) ~ 0.131
Cash Flow Metrics: Net cash from operating activities -112,330,500 CNY; Capex -260,922,500 CNY; Free cash flow -373,253,000 CNY
Balance Sheet Highlights: Cash and cash equivalents 3,476,581,000 CNY; Total assets 7,269,978,000 CNY; Total liabilities 1,278,866,000 CNY; Total stockholders’ equity 5,991,112,000 CNY; Net debt position -3,407,929,000 CNY; Current ratio 4.13x; Cash ratio 2.75x
Valuation Metrics (as of QQ2 2024): P/E 21.89x; P/B 3.57x; P/S 25.68x; Enterprise value multiple 82.58x; Free cash flow yield (negative); Price to operating cash flow -190.33x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
832.60M |
64.59% |
0.00% |
| Gross Profit |
267.67M |
141.09% |
0.00% |
| Operating Income |
192.56M |
89.25% |
0.00% |
| Net Income |
244.11M |
152.86% |
0.00% |
| EPS |
0.19 |
116.65% |
0.00% |
Key Financial Ratios
operatingProfitMargin
23.1%
operatingCashFlowPerShare
$-0.09
freeCashFlowPerShare
$-0.29
Management Commentary
Transcript not provided in the data set. No management call quotes or themes are available in the supplied materials.
"No earnings call transcript was provided in the input set."
— N/A
Forward Guidance
No explicit management guidance was included in the provided data. Given the scale of QQ2 2024 revenue and the rapid margin expansion, the investment thesis would hinge on continued demand for ADC/CDMO services, capacity expansion, and a favorable pricing/mix, balanced against ongoing capex and potential working capital volatility. Investors should monitor: (1) order intake and backlog visibility across ADC/CDMO projects, (2) pace and efficiency of capacity expansion and capital investments, (3) currency and cross-border revenue mix, (4) regulatory developments impacting CRO/CMO pricing and contract terms.