Annual Report 2022

MANAGEMENT DISCUSSION AND ANALYSIS 14 The United Laboratories International Holdings Limited Annual Report 2022 As at 31 December 2022, current assets of the Group amounted to approximately RMB12,514.9 million (2021: RMB9,986.3 million). Net current assets increased from RMB3,451.1 million as at 31 December 2021 to RMB5,481.9 million as at 31 December 2022. The Group’s current ratio was approximately 1.78 as at 31 December 2022, as compared with 1.53 as at 31 December 2021. As at 31 December 2022, the Group had total assets of approximately RMB18,979.6 million (2021: RMB16,331.1 million) and total liabilities of approximately RMB8,370.2 million (2021: RMB6,991.2 million). Equity attributable to owners of the Company increased from RMB9,340.5 million at 31 December 2021 to RMB10,608.1 million at 31 December 2022. As at 31 December 2022, the Group’s net cash and bank balances (after deducting borrowings and trade payables under supplier finance arrangement) amounted to RMB1,394.6 million (2021: RMB212.6 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 and Renminbi. 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. Employees and Remuneration As at 31 December 2022, the Group had approximately 14,000 (2021: 13,300) 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. Contingent Liabilities As at 31 December 2022 and 2021, the Group had no material contingent liabilities.