Annual Report 2019

CHAIRMAN’S STATEMENT 7 The United Laboratories International Holdings Limited Annual Report 2019 During the year, the Group’s revenue amounted to RMB8,392.6 million, representing an increase of approximately 11.7% over 2018. EBITDA was approximately RMB1,798.2 million, representing an increase of 0.5% as compared with last year. Profit attributable to owners of the Company was RMB641.8 million, representing a decrease of 6.0% as compared with last year. Earnings per share amounted to RMB39.14 cents. The Board proposes a final dividend of RMB7 cents per share for the year ended 31 December 2019. The Group’s finished products recorded segment revenue of RMB3,519.1 million, representing a year- on-year increase of 21.9%. In particular, insulin series continued to be the driver for the growth of finished products business, and recorded an aggregate sales revenue of approximately RMB900 million during the year, representing an increase of approximately 30% as compared with 2018. Sales volume of recombinant human insulin injections and insulin glargine injections increased by 12.7% and 158.5% respectively, as compared with last year. The Group’s other finished products maintained steady growth. In particular, Piperacillin Sodium and Tazobactam Sodium for Injection recorded a year-on- year increase of 44.0% in sales revenue, securing the title of single-product sales champion of finished products. Amoxicillin capsules recorded a year-on- year increase of 17.8% in sales revenue. In addition, memantine hydrochloride series, a drug to treat moderate and severe Alzheimer’s disease, saw an ideal growth and recorded a year-on-year increase of 77.3% in sales revenue. The Group’s intermediate products and bulk medicine segments recorded external sales of RMB1,280.4 mi l l i on and RMB3,593.1 mi l l i on , r espec t i ve l y, representing year-on-year growth of 3.8% and 6.0% respectively. During the year, the price of semi- synthetic penicillin bulk medicine fluctuated slightly, and the price of 6-APA gradually decreased to a low level as the market supply capacity recovered, thus resulting in impact on revenue and result of intermediate products segment. Export sales grew steadily. During the year, the Group’s overseas export sales recorded an increase of 23.7% over last year. The Group continued to occupy a leading position in the export market of intermediate products and bulk medicine, and was further listed as one of the “China Top Ten Member Exporters of APIs” again by China Chamber of Commerce for Import & Export of Medicines & Health Products. The Group has been committed to research and development on a continual basis and 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 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.