Annual Report 2023

CHAIRMAN’S STATEMENT 8 The United Laboratories International Holdings Limited Annual Report 2023 Intermediate products and bulk medicine segments hit new highs During the year, the rebounding demand mainly from overseas markets caused market prices of relevant intermediate and bulk medicine to climb. The domestic kept growing steadily and the foreign market grew at a faster pace, presenting an overall good trend. The Group has extended its upstream products to cover near 80 countries and regions on the globe, and serving more than 600 customers in China and worldwide. It has been achieved by establishing trade relations with the BRICK countries and those along the “Belt and Road” and continuously expanding the global sales network and partner network. We will keep the commitment to building a world-leading producer of antibiotic bulk medicines. In November 2023, the Group initiated a construction of Zhuhai United Laboratories (Gaolan Port) API Project, which will produce bulk medicine for sterile cephalosporin, sterile enzyme inhibitor and other products. It will build an intensive, automatic, intelligent and large-scale pharmaceutical production base, boost the industrial upgrading and enhance the high-quality development of the Group. Finished products segment realised steady transformation During the year, the eighth national centralised p r o c u r emen t wa s i n i t i a t ed a nd s u c c e s s i ve l y implemented, covering drugs for common diseases and chronic diseases like infection, cardiovascular and cerebrovascular diseases, allergy and mental diseases in which the Group’s piperacillin sodium and tazobactam sodium for injection (specification: 4.5g) has won the bidding. As the national centralised procurement is becoming normalised and mature, it will gradually tend to alleviate the impact on drug prices. Following the policy guide, the Group carried forward R&D, innovation and product upgrade and further enhanced the comprehensive competitive edges. The Group will continue to implement the brand strategy, expedite market development and explore the growth potential from multiple dimensions such as market, academic knowledge and product. Meanwhile, the Group will improve sales team management and perfect the talent pipeline. The Group will assure the fast and healthy development of the finished products segment with multifaceted measures, including diversified product and business portfolio and differentiated competitive edges. Animal healthcare business leaped forward China’s veterinary drug industry became increasingly standardised and regularized amid the optimization of regulatory rules. The Group expedited the development of the animal healthcare business by seizing the opportunity derived from the systematic upgrade of the industry and relying on our advantages in brand and industrial chain. During the year, the production base construction projects of The United Animal Healthcare (Inner Mongolia) Co., Ltd. and Zhuhai United Animal Healthcare were officially launched. The production base construction of Henan Lianmu Veterinary Medicine Co., Ltd. is also progressing steadily. All these facilities will provide capacity guarantee for the rapid growth of animal healthcare business. Adhering to the principle of “ensuring animal health and protecting human safety”, the Group will continue to put effort into promotion the development of animal healthcare business in South China, North China and Central Regions, cover and serve all animal husbandry regions in China with a view to developing a leading brand of drugs for animal healthcare.