WuXi XDC Cayman Inc (2268.HK) Q2 2024 Earnings Report

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.