(Yicai Global) Oct. 27 -- Shares in WuXi AppTec surged as much as 9 percent in Hong Kong today after China’s largest contract pharmaceutical research and development firm achieved record sales in the third quarter, breaking past CNY10 billion (USD1.4 billion) for the first time, as large-scale production projects generated strong cash flow.

WuXi AppTec's Hong Kong-traded stock [HKG:2359] was trading up 7.6 percent at HKD66.30 (USD8.45) as of 11.30 a.m. China time today. Earlier in the day it had hit HKD67.20. On the mainland, its shares [SHA:603259] were trading up 1.4 percent at CNY79.35 (USD11).

WuXi AppTec raked in revenue of CNY10.6 billion in the three months ended Sept. 30, the first time that its quarterly revenue has topped the CNY10 billion mark, according to the Wuxi, eastern Jiangsu province-based company’s unaudited financial report released yesterday.

The strong results propelled the firm to a record first three quarters, with profit more than doubling year on year to CNY7.4 billion (USD1 billion) and revenue soaring 71.9 percent to CNY28.4 billion, the report said. Net cash flow from operating activities generated CNY7.7 billion over the period, surging nearly two-and-a-half times from a year earlier.

“As Covid-19 continues to create uncertainty for many around the world, we effectively implemented our business continuity plan and leveraged our global capacities and comprehensive capabilities," said Chairman and Chief Executive Li Ge.

"WuXi AppTec is confident that it can achieve an adjusted revenue growth target of between 70 percent and 72 percent this year from the previous one set at between 68 percent to 72 percent,” Li said. “The compound average growth rate for 2021-2024 remains at no less than 34 percent.”

The drug researcher added over 1,000 clients in the first nine months, bringing the total to 5,900. Revenue from its US customers over the period more than doubled year on year to CNY19 billion (USD2.6 billion), while that from its European clients jumped 21 percent to CNY4.1 billion and that from its Chinese customers surged 30 percent to CNY5.3 billion.

The firm has shelved its plan to raise HKD7 billion (USD891.8 million) through a new share sale in Hong Kong, it added.

Over 70 percent of WuXi AppTec’s revenue from its chemical business. It also engages in other segments such as testing, biology and new drug discovery services. The company has managed to continue to do well, despite a number of pharmaceutical firms trimming their R&D expenditure this year amid a tight financing environment.

Five out of the 13 Chinese contract medical R&D firms to have released their third-quarter results so far posted slowing profit growth. These are SMO Clinplus, Boji Medical Technology, PharmaBlock Sciences Nanjing, Xinjiang Bai Hua Cun Pharma Tech and Hangzhou Tigermed Consulting.

Editors: Shi Yi, Kim Taylor