Annual Report 2023

MANAGEMENT DISCUSSION AND ANALYSIS 15 The United Laboratories International Holdings Limited Annual Report 2023 Litigations Reference is made to the Company’s announcements dated 9 August 2019, 14 August 2019 and 9 November 2022 in relation to the investment and cooperation agreement with 恒大地產集團成都有限公司 (Evergrande Real Estate Group (Chengdu) Limited) (“Evergrande (Chengdu)”). The Group applied for the commencement of an action against, among others, Evergrande (Chengdu) on 7 March 2022 in the Guangzhou Intermediate People’s Court for recovery of the outstanding consideration receivables of approximately RMB340 million and relevant damages and received a notice of acceptance on 14 March 2022 (the “Action”). Due to the large number of actions against China Evergrande Group commenced in the Guangzhou Intermediate People’s Court, the Action is handled by the Chengdu Intermediate People’s Court. The Chengdu Intermediate People’s Court heard the case on 6 June 2023 and handed down the judgement dated 28 December 2023 allowing the Group’s claim of approximately RMB136.3 million but rejecting other claims of the Group. The Group has appealed to the Sichuan Province Higher People’s Court against the judgement. The Company will make further announcement(s) on the progress of the appeal as and when appropriate. Save for the above, there was no other material litigation during the Year. PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY Neither the Company, nor any of its subsidiaries purchased, sold or redeemed any of the listed securities of the Company during the year ended 31 December 2023. CORPORATE GOVERNANCE The Board is of the view that best corporate governance is crucial to safeguard the interests of shareholders and to enhance the Group’s performance. The Board is dedicated to maintaining and ensuring a high standard of corporate governance. For the year ended 31 December 2023, the Company has applied and complied with the applicable code provisions set out in the Corporate Governance Code (“CG Code”) and Corporate Governance Report contained in Appendix C1 of Listing Rules, except for deviation which is summarised below: – Code Provision C.2.1 Under the code provision C.2.1 of the CG Code, the roles of chairman and chief executive officer should be separated and should not be performed by the same individual. During the year ended 31 December 2023, the Company did not have a chief executive officer. The Company will make appointment to fill the post as appropriate.