ESG Report 2019

21 2017 2018 2019 RMB 163 million RMB 283 million RMB 368 million Investment in Research & Development RESEARCH AND DEVELOPMENT INVESTMENT AND ACHIEVEMENTS The Group adheres to innovative research and development, continues to invest a lot of resources, and gradually increases investment in research and development. Investment in research and development during the Year was RMB368 million, which accounting for 10.5% of the sales revenue of finished products. RESEARCH, DEVELOPMENT AND INNOVATION The Group adheres to research, development achievements in diabetes medicines were and innovation and continues to invest a lot of approved by the National Medical Products resources in it. The direction of research and Administration and approved for clinical trials . development includes new drugs, high-value At the same time, The United Animal generic drugs, drug preparation and Healthcare's achievements in the research optimization of production processes. Key and development of veterinary medicines have research and development areas involve been recognized by the Ministry of Agriculture endocrine medications, autoimmune disease and Rural Affairs, and the independently medications, ophthalmic medications, developed new veterinary medicines have veterinary medicines, etc. During the Year, the been approved for listing. G r o u p ' s r e s e a r c h a n d d e v e l o pme n t The Group has established the Chemical management and compliance and related Research Institute, the Biological Research work of all clinical trial projects. It also closely Institute and the Clinical Department to cooperates with more than 100 domestic cooperate in research and development. The institutions with national drug clinical trial research institute is equipped with research qualifications and authoritative treatment in talents and advanced equipment. Taking the related fields. Under the guidance of well- Biological Research Institute as an example, known experts in the Country and abroad, we t h e r e a r e n e a r l y 1 5 0 r e s e a r c h a n d have organized and completed more than 70 development personnel, and the proportion of clinical trials of pharmaceuticals. At the same personnel with master’s degree or above time, the Group's Department of Research exceeds 30%. At the same time, it is equipped and Development also cooperates with with more than 100 large-scale research and universities to carry out research and development equipment with leading development work to achieve better research technologies in the Country and abroad. The and development results. Pharmaceutical investment in assets exceeds RMB160 production processes and production million, which is conducive to the research technology are also a part of our research and and development of the Group. development directions, and we commit to is responsible for the design, using better technology to provide customers organization, implementation, quality with the finest pharmaceuticals. The Clinical Department Environmental, Social and Governance Report 2019 The United Laboratories International Holdings Limited

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