WuXi AppTec's Net Profit Jumps, Reiterates It Doesn't Pose Security Threat
By P.R. Venkat
Chinese biotechnology company WuXi AppTec said net profit jumped last year, while reiterating that it doesn't pose a security threat to any country amid worries over a potential U.S. ban.
Net profit for 2023 rose 21.3% to 10.69 billion yuan ($1.49 billion) on steady contributions from its contract research, development and manufacturing organization platform, WuXi AppTec said late Monday. Revenue touched CNY40.34 billion compared with CNY39.35 billion the previous year.
The company will pay a cash dividend of CNY2.88 billion for 2023.
WuXI AppTech said that for this year, it expects free cash flow to remain positive and reach between CNY4.0 billion and CNY5.0 billion, which would continuously cover cash dividend payouts.
WuXi AppTec's shares have been volatile in recent sessions after some U.S. legislators accused the company of being a security threat to the U.S.
Two U.S. bills have targeted the company and its affiliates, seeking to prohibit U.S. federal agencies from contracting with or granting funds to certain Chinese biotech companies on the grounds that the companies could threaten national security through actions such as collecting sensitive biometrics information or collaborating with the Chinese military.
WuXi AppTech reiterated Monday that it continues to engage with relevant stakeholders to explore possible solutions and appealed for due process through transparent consideration of the facts.
"Our company has not been subject to any sanctions and does not pose a national security risk to any country," said Ge Li, the company's chairman and chief executive.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
March 18, 2024 20:55 ET (00:55 GMT)
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