Annual Report 2023

CHAIRMAN’S STATEMENT 6 The United Laboratories International Holdings Limited Annual Report 2023 Dear shareholders and partners, In 2023, China resisted the pressure from external challenges and internal downturn, achieved a well- organised recovery of the national economy and continued upgrade towards a high-quality development. The pharmaceutical industry being as an important component of the national economy has also presented a momentum of high-quality development, propelled by the national policy guide, market demand drive, proactively innovative research & development of enterprises and other factors. 2023 was a critical year that played a linking role in the 14th Five-years Plan. With the continuous deepening of medical insurance system reform, the pharmaceutical industry embraced more opportunities accompanied with equal challenges. High-quality local generic drugs substituted imported drugs at a faster pace, driven by the joint effect of the national organised centralized procurement of drugs (“national centralized procurement”), national medical insurance negotiation and other policies. At the same time, innovative drugs were faster added to the National Drug List for Basic Medical Insurance, Occupational Injury Insurance and Maternity Insurance (“Medical Insurance List”). This has benefited more patients and provided incentive to enterprises for research, development and innovation. During the year, ten ministries and commissions, including the National Health Commission, jointly initiated a one-year centralised anti-corruption campaign in the medical sector in China, further advanced the healthcare system reform and boosted the healthy development of the pharmaceutical industry. Pharmaceutical enterprises can realise the long-term and high-quality development only by embracing the new opportunity, strengthening research, development and innovation and becoming more competitive in the market without cease. Mr. Tsoi Hoi Shan Chairman