Annual Report 2021

MANAGEMENT DISCUSSION AND ANALYSIS 12 The United Laboratories International Holdings Limited Annual Report 2021 As at 31 December 2021, current assets of the Group amounted to approximately RMB9,986.3 million (2020: RMB8,225.0 million). Net current assets increased from RMB3,365.1 million as at 31 December 2020 to RMB3,451.1 million as at 31 December 2021. The Group’s current ratio was approximately 1.53 as at 31 December 2021, as compared with 1.69 as at 31 December 2020. As at 31 December 2021, the Group had total assets of approximately RMB16,331.1 million (2020: RMB14,963.7 million) and total liabilities of approximately RMB6,991.2 million (2020: RMB6,351.9 million). Equity attributable to owners of the Company increased from RMB8,613.9 million as at 31 December 2020 to RMB9,340.5 million as at 31 December 2021. As at 31 December 2021, the Group’s net cash and bank balances (after deducting borrowings and trade payables under supplier finance arrangement) amounted to RMB212.6 million (2020: RMB20.3 million). Currency Exchange Exposures The Group’s purchases and sales are mainly denominated in Renminbi, United States dollars and Hong Kong dollars. The operating expenses of the Group are mainly denominated in Renminbi and Hong Kong dollars. The Group’s borrowings are denominated in Hong Kong dollars, Renminbi, Euro and United States dollars. The Group’s treasury policy is in place to monitor and manage its exposure to fluctuation in exchange rates. Besides, the Group will conduct periodic review of its exposure to foreign exchange risk and may use financial instrument for hedging purpose when considered appropriate. Contingent Liabilities As at 31 December 2021 and 2020, the Group had no material contingent liabilities. Employees and Remuneration As at 31 December 2021, the Group had approximately 13,300 (2020: 13,000) employees in Hong Kong and mainland China. The employees are remunerated with basic salary, bonus and other benefits in kind, with reference to industry practice and their individual performance.