Annual Report 2024

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 80 The United Laboratories International Holdings Limited Annual Report 2024 4. KEY SOURCES OF ESTIMATION UNCERTAINTY (Continued) Provision of ECL for trade receivables The Group estimates the ECL on trade receivables using a provision matrix. During the years ended 31 December 2024 and 2023, the loss rates for the trade receivables are estimated based on historical credit loss experience, adjusted for forward-looking factors specific to the debtor’s industry and the macroeconomic environment. At every reporting date, all available historical observed default rates are reassessed and changes in the forward-looking information are considered. The provision of ECL is sensitive to changes in estimates. The information about the ECL and the Group’s trade receivables is disclosed in Notes 39 and 24, respectively. 5. REVENUE AND SEGMENT INFORMATION The Group is currently organised into three revenue streams, including Intermediate products, Bulk medicine and Finished products. Specifically, the Group’s reportable segments under HKFRS 8 are as follows: 1) Intermediate products – mainly represent sales of 6-APA products and penicillin G potassium products; 2) Bulk medicine – mainly represent sales of amoxicillin products; and 3) Finished products – mainly represent sales of insulin series products, antibiotics products, nervous system drugs, ophthalmic products, health care products and veterinary drugs.