Annual Report 2024

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 105 The United Laboratories International Holdings Limited Annual Report 2024 20. INTANGIBLE ASSETS (Continued) Notes: At 31 December 2024 and 2023, cost of intangible assets comprise of: (Continued) f) The capitalised development cost of insulin glargine (the “Insulin Glargine”) of RMB69,408,000 has started to amortise from the date when it was put into production process since the year ended 31 December 2017. The capitalised development cost of Insulin Aspart, 6-Aminopenicillanic Acid, Insulin Glargine, Amoxicillin, Clavulanate and animal drugs is amortised over 10 years and the capitalised development cost of Clavulanate Potassium is amortised over 5 years which are the expected period for which they will bring future economic benefits to the Group. ii. An amount of RMB47,100,000 (2023: RMB47,100,000), representing externally acquired technical know-how (“Know-how”) in identifying processes for manufacturing finished products and protocols for fermentation/ purification methodology. During the year ended 31 December 2015, two of the Know-how at a total cost of RMB29,140,000 had commenced amortisation starting from the date when they were put into production process. It is amortised over 10 years which is the expected period for which they will bring future economic benefits to the Group. Due to suspension of a product development, the management estimated the recoverable amount of it to be minimal as the future economic benefits are not probable to bring to the Group based on value in use calculation. As a result, a full impairment loss of RMB17,960,000 has been recognised on one of the know- how of the relevant product development during the year ended 31 December 2018. 21. INTERESTS IN AN ASSOCIATE 2024 2023 RMB’000 RMB’000 Cost of investment in an associate 7,350 7,350 Share of post-acquisition loss and other comprehensive expense (238) (46) 7,112 7,304