(Yicai Global) Aug. 24 -- China's leading biotechnology firm WuXi AppTec saw first-half net profit surge 71 percent to of CNY1.3 billion (USD188 million) despite a falling gross profit margin.
The Jiangsu-based firm, which boasts Johnson & Johnson and Pfizer among its clients, posted net income from its primary drug business rise by nearly one-third to CNY 827million, according to the company's interim report.
Wuxi Apptec's gross profit margin from its main business fell 3.3 percentage points to 40 percent compared with the same period of last year. Within the drug business, the margin for laboratory services fell to 45.1 percent from 46.6 percent. Notably, the margin for US lab services fell significantly to 22.9 percent from 31.9 percent, which was due to a large rise in operating costs.
The firm attributed the overall rise in company net profit attributes to the increasing values of firms that it invests in such as Unity Biotechnology, HuaMedicine and Adagene., accounting for CNY432 million or more than one-third of the total.
The closing balance of the company's financial products had reached CNY1.4 billion as of the end of June, 97-times higher than the opening balance, while the closing balance of its available-for-sale financial assets had reached CNY1.4 billion, double that of the opening balance. Foreign equity investments increased nearly annually five-fold to CNY367 million.
Editor: William Clegg