Annual Report 2024

REPORT OF THE DIRECTORS 29 The United Laboratories International Holdings Limited Annual Report 2024 CONTINUING CONNECTED TRANSACTION The United Animal Healthcare (Inner Mongolia) Co., Ltd., The United Animal Healthcare (Zhuhai) Co., Ltd. (both are indirect wholly-owned subsidiaries of the Company), and Henan Lianmu Veterinary Medicine Co., Ltd. (an indirect non-wholly-owned subsidiary of the Company) (collectively “Suppliers”), and Muyuan Foods Co., Ltd. （牧 原食品股份有限公司） , a joint stock company organised and established in accordance with the laws of the PRC and listed on the Shenzhen Stock Exchange (stock code: SZ002714) (“Muyuan Foods”) entered into a master sales agreement dated 3 June 2024, pursuant to which the Suppliers have agreed to supply to Muyuan Foods, and Muyuan Foods has agreed to purchase from the Suppliers veterinary drug products, including but not limited to injections such as Amoxicillin Sodium for injection, customized Penicillin Sodium for injection and Ampicillin Sodium for injection for a period of three years from 1 January 2024 to 31 December 2026 (both dates inclusive) under annual sales cap for three years 2024, 2025 and 2026 amounting to RMB1,100,000,000, RMB1,320,000,000 and RMB1,650,000,000 respectively. The annual sales for the year ended 31 December 2024 to Muyuan Foods amounted to RMB962,000,000, which has been reviewed and confirmed by the independent non-executive directors and the auditor of the Company. SHARE AWARD SCHEME The Company adopted a share award scheme on 26 October 2023 (the “Share Award Scheme”). The Share Award Scheme is to reward the directors and employees of the Group for their hard work, contribution and loyalty and align their interest with those of the shareholders of the Company. The number of shares to be funded by issue of new shares of the Company and/or purchased of existing shares on-market which may be awarded under the Share Award Scheme shall not exceed 10% of the issued shares of the Company as at 26 October 2023 (i.e. 181,702,650 shares). The principal terms of the Share Award Scheme are set out in the Company’s circular dated 15 September 2023. On 13 November 2023, the directors of the Company resolved to grant a total of 12,096,900 shares (the “Awarded Shares”) to selected participants in accordance with the terms of the Share Award Scheme. All of the 12,096,900 Awarded Shares are granted by way of acquisition of the existing shares of the Company through on-market transactions by the trustee of the Share Award Scheme. The grant of 12,096,900 Awarded Shares will not result in any issue of new shares of the Company. Details of the grant of the Awarded Shares are disclosed in the Company’s announcement dated 13 November 2023. As at 31 December 2024, 169,605,750 shares of the Company are available for future grant under the Share Award Scheme.