Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS 9 The United Laboratories International Holdings Limited Annual Report 2020 BUSINESS REVIEW AND FINANCIAL RESULTS For the year ended 31 December 2020, the Group’s revenue was approximately RMB8,772.5 million, an increase of 4.5% as compared with last year. The profit attributable to shareholders for the year ended 31 December 2020 was approximately RMB703.0 million while the profit for the year ended 31 December 2019 was approximately RMB641.8 million, representing an increase of 9.5%. During the year, segmental revenue (including inter- segment sales) of intermediate products, bulk medicine and finished products increased by 1.1%, 2.1% and 5.8% respectively as compared with last year. Segmental result of intermediate products and finished products increased by 195.5% and 13.2% respectively as compared with last year. Segmental result of bulk medicine decreased by 10.1% as compared with last year. Fair value loss of embedded derivative components of convertible bonds of approximately RMB314.6 million is mainly due to continuous increase in the share price of the Company during the year. The fair value loss is a non-cash item not involving any cash out-flow. The Group’s operations during the year are summarised as follows: Mr. Leung Wing Hon Vice-Chairman