Annual Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS 12 The United Laboratories International Holdings Limited Annual Report 2019 Finished Products During the year, the Group’s finished products business maintained continued growth and recorded a segment revenue of approximately RMB3,519.1 million, representing an increase of 21.9%, and segment profit of approximately RMB783.5 million, representing an increase of 27.3%. The increase in segment profits was contributed from change of product mix during the year with increase in sales of products with higher margin. The Group’s other finished products maintained steady growth. In particular, Piperacillin Sodium and Tazobactam Sodium for Injection (trade name: “ 联邦他唑仙 ”) witnessed outstanding sales performance and recorded sales revenue of RMB694.9 million during the Year, representing a year-on-year increase of 44.0% and securing the title of single-product sales champion of finished products. Amoxicillin capsules (trade name: “ 联邦阿莫仙 ”) recorded sales revenue of RMB531.5 milion, representing a year-on-year increase of 17.8%. In addition, memantine hydrochloride series, a drug to treat moderate and severe Alzheimer’s disease, (trade name: “ 邦得清 ”) saw an ideal growth and recorded sales revenue of RMB78.6 million during the Year, representing a year-on-year increase of 77.3%. The Group’s insulin series products continued to be the major driving force of the growth of finished products. Recombinant human insulin injections (trade name: “ 优思灵 USLIN”) realised sales volume of 16,829,000 vials, representing a year-on-year increase of 12.7%, and recorded sales revenue of RMB686.9 million, booking a growth higher than the industry average level. Insulin glargine injections (trade name: “ 联邦优 樂 灵 USLEN”) realised sales volume of 1,612,000 vials, representing a significant year-on-year increase of 158.5%, and recorded sales revenue of RMB222.7 million. Currently, insulin glargine products of the Group have won the tender through bidding in 25 provinces. Research and Development The Group has been committed to research and development on a continual basis. The expenditure on R&D for current year amounted to approximately RMB368.0 million, representing 29.9% increase as compared with last year. The Group currently has 29 new products under development, which is expected to further enrich the reserve of finished products. In particular, the Group has applied for production permit approval of insulin aspart injection and insulin aspart 30 injection and launched clinical trial for liraglutide injection; the clinical trial of insulin degludec injection has been approved in September 2019. Based on the increasingly perfect biological R&D platform, the Group will continue to expand its development of relevant products in the fields of internal secretion and autoimmune disease. With regard to the research and development of chemical pharmaceuticals, the Group remains focus on series of anti-HBV drugs and eye drops, and will continue to expand into new drugs.