Annual Report 2022

CHAIRMAN’S STATEMENT 8 The United Laboratories International Holdings Limited Annual Report 2022 Highlights in pharmaceuticals for human use segment In 2022, the Group reached another record high in its performance of intermediates and bulk medicines as our upstream businesses. Overall, they have shown a good momentum of rapid growth within China and balanced development internationally among various regions. In the future, we will continue to promote our brand strategy, accelerate market development and commercialisation, expand external cooperation, achieve product and business diversification, and establish differentiated competitive advantages to promote the return of upstream business value. With the implementation of the sixth batch national centralised drug procurement (specialised in Insulin), the sales volume of the Group’s insulin series products maintained steady growth. We will continue to explore growth potential and drive effective growth of insulin products from multiple dimensions such as market, academic knowledge and product to promote the growth of insulin business, thus further benefiting diabetes patients. The Group will take several measures to ensure the rapid and healthy development of our finished products business, including improving sales team management, growing talent pipeline and upgrading the facilities of the finished products production line to improve the industrialisation capability in an all-round way. Rapid rise of animal healthcare segment Drugs for animal healthcare play an important role in preventing animal diseases and improving breeding efficiency. On 1 June 2022, the Good Manufacturing Practise for Veterinary Drugs (Revision 2020) (the “New GMP for Veterinary Drugs”) was officially implemented, marking that standards are further enhanced and regulations are further intensified in China’s veterinary drug industry. The stricter regulations and accelerated systematic upgrading in the industry will lead to optimised market competition landscape, which will in turn bring new opportunities for the development of the Group’s animal healthcare business. Leveraging on the Group’s advantages in brand and industrial aspects, the Group witnessed rapid growth of its animal healthcare business during the year, and achieved fruitful results in promotion of new product, market development and strategic cooperation. Adhering to the principle of “ensuring animal health and protecting human safety”, we will continue our efforts to promote the development of animal healthcare business with a view to developing a leading brand of drugs for animal healthcare.