Annual Report 2023

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 106 The United Laboratories International Holdings Limited Annual Report 2023 20. INTANGIBLE ASSETS (Continued) Notes: At 31 December 2023 and 2022, cost of intangible assets comprise of: (Continued) ii. An amount of RMB47,100,000 (2022: RMB47,100,000), representing externally acquired technical know-how (“Know-how”) in identifying processes for manufacturing finished products and protocols for fermentation/ purification methodology. During the year ended 31 December 2015, two of the Know-how at a total cost of RMB29,140,000 had commenced amortisation starting from the date when they were put into production process. It is amortised over 10 years which is the expected period for which they will bring future economic benefits to the Group. Due to suspension of a product development, the management estimated the recoverable amount of it to be minimal as the future economic benefits are not probable to bring to the Group based on value in use calculation. As a result, a full impairment loss of RMB17,960,000 has been recognised on one of the know- how of the relevant product development during the year ended 31 December 2018. 21. INTERESTS IN AN ASSOCIATE 2023 2022 RMB’000 RMB’000 Cost of investment in an associate 7,350 7,350 Share of post-acquisition loss and other comprehensive expense (46) (189) 7,304 7,161 Details of the Group’s associate as at 31 December 2022 and 2023 are as follows: Name of an associate Place of incorporation/ principal place of business Proportion of ownership interest held by the Group Proportion of voting rights held by the Group Principal activity 2022 2023 2022 2023 寧波普邦生物科技有限公司 (“Ningbo Pubang”) The PRC 49% 49% 49% 49% Sale of veterinary drugs in PRC The Group has 49% ownership interest and voting rights in Ningbo Pubang. By considering that the Group has no sufficiently dominant voting rights to direct the relevant activities of Ningbo Pubang unilaterally, the directors of the Group conclude that the Group only has significant influence over Ningbo Pubang and therefore it is classified as an associate of the Group.