Annual Report 2022

MANAGEMENT DISCUSSION AND ANALYSIS 11 The United Laboratories International Holdings Limited Annual Report 2022 The operating results of each segment of the Group are summarised as follows: Intermediate Products and Bulk Medicine During the year, the intermediate products and bulk medicines segment recorded external sales of approximately RMB1,599.2 million and RMB5,174.7 million, respectively, representing a year-on-year decrease of 5.9% and increase of 30.4%, respectively. The selling prices and sales volume of bulk medicine continued to increase. The selling price of intermediate products remained at a high level. Overseas export recorded sales of RMB2,371.5 million, representing a year-on-year increase of 13.1%, accounting of 20.9% of total revenue of the Group. The Group secured its position as an industry leader in the domestic and export markets for intermediate products and bulk medicine. In September 2022, the antibiotic sterile bulk medicines of Zhuhai United Laboratories Co., Ltd., a wholly-owned subsidiary of the Company, including Amoxicillin Sodium, Ampicillin Sodium, Clavulanic Acid, Sulbactam Sodium and mixed powder varieties, passed the official inspection of the Spanish Agency for Medicine and Health Products (AEMPS), and the subsidiary obtained the GMP Compliance Certificate issued by the Spanish government, signalling that United Laboratories gained further trust and recognition from EU countries for its production capacity and product quality, which in turn facilitates us to increase international presence of our business. Finished Products During the year, the external sales of finished products was approximately RMB4,560.3 million, representing a year-on-year increase of 13.0%. Diabetes series recorded total sales revenue of approximately RMB1,175.5 million. Among that, the recombinant human insulin injection recorded sales revenue of approximately RMB661.8 million, and registered a year-on-year increase of 8.8% in sales volume. Insulin glargine injection recorded sales revenue of approximately RMB422.1 million, and registered a year-on-year increase of 41.5% in sales volume. Insulin aspart injection and insulin aspart 30 injection recorded sales revenue of approximately RMB91.6 million, and registered a significant year-on-year increase of 940.4% in sales volume. In May 2022, the results of the sixth batch national centralised drug procurement (specialised in Insulin) were successively implemented in provinces and cities across China. During the year, affected by factors such as decrease in the price of products, the sales revenue of the diabetes series decreased year-on-year. Leveraging the new opportunity of centralised drug procurement of insulin, the Group will continue its market-wide product sales expansion to drive profit improvement through scale expansion, increase market share, enhance brand influence, and benefit more diabetes patients, thus catalysing domestic replacement in the diabetes sector. Antibiotics products, including veterinary drugs, recorded sales revenue of RMB3,063.0 million, representing a year-on-year increase of 32.9%. Among that the piperacillin sodium and tazobactam sodium for injection recorded a sales revenue of RMB672.6 million, representing a year-on-year increase of 10.0%, and amoxicillin capsules recorded a sales revenue of RMB578.8 million, representing a year-on-year increase of RMB14.7%.