Annual Report 2023

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 90 The United Laboratories International Holdings Limited Annual Report 2023 7. OTHER GAINS AND LOSSES, NET/OTHER EXPENSES 2023 2022 RMB’000 RMB’000 (a) Other gains and losses, net Net loss (gain) on fair value changes of derivative financial instruments (Note) 12,399 (37,730) Gain on disposal of financial assets at FVTPL (72,748) (17,973) (Reversal of write-down) write-down of deposits for property, plant and equipment (5,563) 2,168 Net loss on disposal of property, plant and equipment 3,703 4,390 Written off of property, plant and equipment 47,955 78,176 Net foreign exchange (gain) loss (9,452) 59,412 Others 35 128 (23,671) 88,571 (b) Other expenses Research and development expenditures 757,248 593,598 Tax penalty 5,424 781 Others 15,714 9,236 778,386 603,615 Note: During the years ended 31 December 2023 and 2022, the Group had entered into several foreign currency forward contracts with banks and financial institutions to reduce its exposure to foreign currency risks. These derivatives were not accounted for under hedge accounting. There were three (2022: three) outstanding derivative financial instruments held by the Group as at 31 December 2023.