Annual Report 2019

CHAIRMAN’S STATEMENT 6 The United Laboratories International Holdings Limited Annual Report 2019 On behalf of the board of directors (the “Board”) of The United Laboratories International Holdings Limited (the “Company” or “The United Laboratories”), I hereby present to all shareholders the annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2019. In 2019, the global economy slowed down under the influence of Brexit, China-US trade war and other factors. China’s GDP was close to RMB100 trillion during the year, growing by 6.1% as compared with 2018. In spite of the pressure of global economic slowdown and trade wars, China’s macro economy still grew within a reasonable range, and indicators including consumption, investment and industry were all stable. During the year, the government further deepened the comprehensive reform of public hospitals, achieved positive interactions in three aspects, “medical i nsu r ance , med i ca l t r ea tmen t and pha rmacy” , and advanced health care reform and industr y standardisation. In the meantime, the government extended the scope of drug bulky procurement, adjusted the cat alog of medicines covered by national medical insurance system, and accelerated the injection consistency evaluation, all of which manifested the State’s determination in promoting drug supply-side reform, deepening health care reform and improving the quality of domestic drugs. As the industry reform goes deeper, the concentration of the pharmaceutical industry will further improve, and China’s generic drug sector will accelerate industrial consolidation and innovation-driven upgrading. Mr. Tsoi Hoi Shan Chairman