WuXi AppTec's strongest half-year report in history, with profits breaking the 10 billion mark across the board! The Stock Connect Innovative Drug ETF WanJia (520700) surged over 3%

On August 4, the three major Hong Kong stock indices adjusted collectively, while the biopharmaceutical sector rose against the market trend. WuXi AppTec surged 10% after its earnings report.

The Wan Jia CSI HK Stock Connect Innovative Drug ETF (Exchange-traded abbreviation: HK Stock Connect Innovative Drug ETF Wan Jia-520700) closely tracks the CSI HK Stock Connect Innovative Drug Index.

As of 10:04, the HK Stock Connect Innovative Drug ETF Wan Jia (520700) rose significantly by 3.19%, with an intraday turnover rate exceeding 20% and trading volume surpassing 100 million RMB; heavyweight stocks GenScript Biotech rose 11.96%, $WuXi AppTec(WX.US) rose 10.62%, Pharmaron rose 8.28%, Tigermed rose 5.89%, WuXi XDC rose 5.66%, Hansoh Pharmaceutical fell 0.44%, and Ascentage Pharma fell 0.06%.

In terms of news, WuXi AppTec delivered its strongest semi-annual performance in history for the first half of 2026. Total operating revenue reached 28.897 billion RMB, with year-on-year growth in continuing operations revenue of 48.0%, significantly exceeding the original guidance of 18%-22% set at the beginning of the year. The second quarter saw single-quarter revenue of 16.461 billion RMB and net profit attributable to shareholders of 6.428 billion RMB, both setting new single-quarter historical highs since listing.

WuXi AppTec's profit segment also broke through the 10 billion RMB level simultaneously. In the first half of the year, IFRS net profit attributable to shareholders was 11.08 billion RMB (+29.4%), adjusted Non-IFRS net profit attributable to shareholders was 11.57 billion RMB (+83.2%), and non-GAAP net profit attributable to shareholders was 10.572 billion RMB (+89.4%). This marks the first time the company has achieved profits exceeding 10 billion RMB across all three metrics in a semi-annual period.

WuXi AppTec's order backlog reached 66.43 billion RMB as of the end of June, a year-on-year increase of 25.2%, providing solid visibility for revenue growth in 2026 and 2027. Based on the significant beat in earnings and the saturation of orders on hand, the company raised its full-year revenue guidance from 51.3-53.0 billion RMB to 58.5-60.5 billion RMB, significantly increasing the expected growth rate of continuing operations revenue from 18%-22% to 35%-39%.

Additionally, according to announcements from the National Medical Products Administration, seven domestic innovative drugs were approved for marketing in July. Last month, 12 cross-border licensing deals were concluded, with a total value reaching $9.253 billion. AstraZeneca, in particular, made continuous moves, reaching three cooperation agreements with Chia Tai Tianqing, CSPC Pharmaceutical Group, and Dizal Pharma.

Industrial Securities pointed out that "Innovation + Internationalization" remains the core theme for the pharmaceutical industry in 2026. Regarding innovative drugs, China's global competitiveness in innovative drugs continues to strengthen. The industrial logic of policy support, BD going global, and commercialization profitability realization remains unchanged. Overseas large pharmaceutical companies face patent cliffs and needs for pipeline supplementation. Chinese enterprises stand out for their R&D efficiency and cost advantages. The Co-Co model is gradually increasing, reflecting the rising bargaining power of Chinese innovative drug enterprises in cooperation.

The Wan Jia CSI HK Stock Connect Innovative Drug ETF (Exchange-traded abbreviation: HK Stock Connect Innovative Drug ETF Wan Jia-520700) tracks the CSI HK Stock Connect Innovative Drug Index. The index compilation method is more scientific and reasonable, with constituent stocks covering leading enterprises such as BeiGene, Innovent Biologics, and $WuXi Biologics(WX.US). It focuses on listed companies engaged in the R&D, production, and services of innovative drugs in the Hong Kong stock market.

The fund supports T+0 trading, facilitating investors to keep up with rapid market fluctuations, flexibly allocate funds, and achieve efficient use of capital. Off-exchange investors can layout opportunities in innovative drug development through feeder funds (Class A: 023481; Class C: 023482).

(Funds involve risks; investment requires caution.)