Annual Report 2024

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 93 The United Laboratories International Holdings Limited Annual Report 2024 11. TAX EXPENSE (Continued) According to a joint circular of Ministry of Finance and State Administration of Taxation, Cai Shui 2008 No.1, dividend distributed out of the profits generated since 1 January 2008 by a PRC entity to a non-PRC tax resident shall be subject to the PRC EIT pursuant to Articles 3 and 27 of the Income Tax Law Concerning Foreign Investment Enterprises and Foreign Enterprises and Article 91 of the Detailed Rules for the Implementation of the Income Tax Law for Enterprises with Foreign Investment and Foreign Enterprises. The withholding tax rate applicable to the Group is 5%. As at 31 December 2024 and 2023, deferred tax was provided for in full in respect of the temporary differences attributable to such profits. The tax expense for the year can be reconciled to the profit before taxation per the consolidated statement of profit or loss and other comprehensive income as follows: 2024 2023 RMB’000 RMB’000 Profit before taxation 3,288,898 3,344,148 Tax at the PRC EIT rate of 25% (2023: 25%) 822,225 836,037 Tax effect of share of results of an associate 48 (36) Tax effect of expenses not deductible for tax purpose 181,963 115,599 Tax effect of income not taxable for tax purpose (51,441) (44,822) Tax effect of super deduction of research and development expenses (Note) (55,394) (89,191) Tax effect of tax losses not recognised 23,909 18,516 Utilisation of tax losses previously not recognised (737) (18,152) PRC withholding tax on distributable profits of the PRC subsidiaries 74,968 136,712 PRC withholding tax on interest income 1,448 5,908 PRC withholding tax on royalty income 36 79 Effect of tax concessionary rates granted to the PRC subsidiaries (361,373) (315,972) Effect of different tax rates of subsidiaries operating in other jurisdictions (4,171) (795) Others (404) (580) Tax expense for the year 631,077 643,303 Note: Pursuant to State Administration of Taxation Announcement [No. 7, 2023], the Group is able to enjoy super deduction of 200% on qualifying research and development expenditures for the years ended 31 December 2024 and 2023.

RkJQdWJsaXNoZXIy NTk2Nzg=