WUXI APPTEC - Announcement from Wuxi WuXi AppTec New Drug Development Co., Ltd. on the provision for asset impairment in 2025
WUXI APPTEC CO., LTD.*
Wuxi WuXi AppTec New Drug Development Co., Ltd.
(a joint stock limited company incorporated in the People's Republic of China)
(Stock code: 2359)
Overseas regulatory announcement
This overseas regulatory announcement is made by the Company in accordance with Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The full Chinese text of the following information published by the Company on the Shanghai Stock Exchange website is hereby provided for reference only.
By order of the board of directors
Wuxi WuXi AppTec New Drug Development Co., Ltd.
Chairman
Dr. Li Ge
Hong Kong, March 23, 2026
As of the date of this announcement, the Company's Board of Directors includes executive directors Dr. Li Ge, Dr. Chen Minzhang, Dr. Yang Qing and Mr. Zhang Zhaohui; non-executive directors Mr. Tong Xiaoyi and Dr. Wu Yibing; and independent non-executive directors Ms. Lu Shaohua, Dr. Yu Wei, Dr. Zhang Xin, Ms. Zhan Zhiling and Mr. Leng Xuesong.
*For identification only
Securities Code: 603259 Securities Abbreviation: WuXi AppTec Announcement Number: Lin 2026-010 Wuxi WuXi AppTec New Drug Development Co., Ltd.
Announcement on Provision for Asset Impairment in 2025
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
- Provision for impairment losses in 2025
In accordance with the Accounting Standards for Business Enterprises and relevant accounting policies, in order to truly and accurately reflect the financial status of Wuxi Wuxi AppTec New Drug Development Co., Ltd. (hereinafter referred to as the "Company") as of December 31, 2025 and its operating results in 2025, the company conducted an inventory of the relevant assets within the consolidation scope, and based on the principle of prudence, made impairment provisions for relevant assets that may suffer impairment losses. The specific situation is shown in the following table:
In 2025, the company accrued a total of RMB 1,069.518 million in credit impairment losses and asset impairment losses, including RMB 527.962 million in credit impairment losses and RMB 541.556 million in asset impairment losses.
- Explanation of impairment losses in 2025
(1) Credit impairment losses and contract asset impairment losses
In accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", the company accrues bad debt provisions for accounts receivable and contract assets based on the combination of credit risk characteristics. In 2025, the company accrued credit impairment losses of RMB 527.962 million on accounts receivable and accrued contract asset impairment losses of RMB 143.9012 million on contract assets.
(2) Loss from inventory depreciation
According to the provisions of "Accounting Standards for Business Enterprises No. 1 - Inventories", inventories are measured at the lower of cost and net realizable value on the balance sheet date. When the inventory cost is higher than its net realizable value, inventory depreciation losses are accrued. In 2025, the company accrued a loss of RMB 42.3852 million for inventory depreciation.
(3) Impairment losses on fixed assets/projects under construction/intangible assets/other long-term assets
According to the "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", the company checks on each balance sheet date whether there are any signs of possible impairment of fixed assets, projects under construction, intangible assets with definite useful lives and other long-term assets. If there is any indication of impairment of these assets, estimate their recoverable amount. If the recoverable amount of an asset is lower than its book value, the asset impairment provision will be made based on the difference and included in the current profit and loss. In 2025, the company made provision for impairment losses of RMB 112,821,100, RMB 108,403,900, RMB 658,400, and RMB 12,649,100 respectively for fixed assets, projects under construction, intangible assets, and other long-term assets.
(4) Impairment losses on assets held for sale
According to "Accounting Standards for Business Enterprises No. 42 - Non-current assets held for sale, disposal groups and discontinued operations", the company measures non-current assets or disposal groups held for sale at the lower of the book value and fair value minus selling expenses. If the book value is higher than the net amount of fair value minus selling expenses, the book value is reduced to the net amount of fair value minus selling expenses, and the amount of the write-down is recognized as asset impairment loss. In 2025, the company accrued impairment losses of RMB 120.7372 million on assets held for sale.
- The impact of this recognition of impairment losses on the company
The provision of credit impairment losses and asset impairment provisions at the end of the year involves a number of matters that require professional judgment and confirmation by auditors, and the relevant amounts must be confirmed item by item after the completion of the annual audit. After auditing, the company has accrued various impairment losses totaling 1,069.518 million yuan in 2025, which will reduce the company's total consolidated profit in 2025 by 1,069.518 million yuan. The above-mentioned impairment losses are in compliance with the relevant provisions of the "Accounting Standards for Business Enterprises", can truly and objectively reflect the company's financial status as of December 31, 2025, and the operating results of 2025, comply with the provisions of relevant laws and regulations and the company's actual situation, will not affect the company's normal operations, and will not harm the interests of the company and all shareholders.
Announcement is hereby made.
Board of Directors of Wuxi WuXi AppTec New Drug Development Co., Ltd.
March 24, 2026