Annual Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS 10 The United Laboratories International Holdings Limited Annual Report 2019 BUSINESS REVIEW AND FINANCIAL RESULTS For the year ended 31 December 2019, the Group’s revenue was approximately RMB8,392.6 million, an increase of 11.7% as compared with last year. The profit attributable to shareholders for the year ended 31 December 2019 was approximately RMB641.8 million while the profit for the year ended 31 December 2018 was approximately RMB682.9 million, representing a slightly decrease of 6.0%. During the year, segmental revenue (including inter- segment sales) of bulk medicine and finished products increased by 8.2% and 21.9% respectively as compared with last year. Segmental result of bulk medicine and finished products increased by 124.3% and 27.3% respectively as compared with last Mr. Leung Wing Hon Vice-Chairman year. Segmental revenue and result of intermediate products decreased by 1.9% and 69.6% respectively as compared with last year. The fair value change of embedded derivative components of convertible bonds records a loss of approximately RMB110.1 million is mainly due to fluctuation in the share price of the Company during the year. Fair value loss of investment properties located in Chengdu amounted to RMB97.6 million (2018: RMB94.9 million). During the year, the Group also recorded a gain of RMB200.4 million on disposal of a subsidiary, 聯邦 制藥（成都）有限公司 (United Laboratories (Chengdu) Limited). The Group’s operations during the year are summarised as follows: