Annual Report 2023

MANAGEMENT DISCUSSION AND ANALYSIS 14 The United Laboratories International Holdings Limited Annual Report 2023 As at 31 December 2023, current assets of the Group amounted to approximately RMB13,787.2 million (2022: RMB12,514.9 million). Net current assets increased from RMB5,481.9 million as at 31 December 2022 to RMB7,160.5 million as at 31 December 2023. The Group’s current ratio was approximately 2.08 as at 31 December 2023, as compared with 1.78 as at 31 December 2022. As at 31 December 2023, the Group had total assets of approximately RMB21,017.2 million (2022: RMB18,979.6 million) and total liabilities of approximately RMB8,269.6 million (2022: RMB8,370.2 million). Equity attributable to owners of the Company increased from RMB10,608.1 million at 31 December 2022 to RMB12,734.8 million at 31 December 2023. As at 31 December 2023, the Group’s net bank balances and cash (after deducting bank borrowings and trade payables under supplier finance arrangement) amounted to RMB1,755.5 million (2022: RMB1,394.6 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 2023, the Group had approximately 15,000 (2022: 14,000) 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 2023 and 2022, the Group had no material contingent liabilities. Adoption of Share Award Scheme As announced on 4 August 2023, the Board proposed to adopt the share award scheme (the “2023 Share Award Scheme”). The purpose of the 2023 Share Award Scheme is to recognise the contributions by certain selected participants with an opportunity to acquire a proprietary interest in the Company, encourage and retain such individuals for the continual operation and development of the Group, provide additional incentives for them to achieve performance goals, attract suitable personnel for the further development of the Group and motivate the selected participants to maximize the value of the Company for the benefits of both the selected participants and the Company. The 2023 Share Award Scheme was approved for adoption in the extraordinary general meeting held on 26 October 2023. On 13 November 2023, the Board resolved to grant a total of 12,096,900 award shares to selected participants in accordance with the terms of the 2023 Share Award Scheme.