Annual Report 2025

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2025 97 The United Laboratories International Holdings Limited Annual Report 2025 11. TAX EXPENSE (Continued) 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: 2025 2024 RMB’000 RMB’000 Profit before taxation 2,527,953 3,288,898 Tax at the PRC EIT rate of 25% (2024: 25%) 631,988 822,225 Tax effect of share of results of an associate 13 48 Tax effect of expenses not deductible for tax purpose 174,055 181,963 Tax effect of income not taxable for tax purpose (78,818) (51,441) Tax effect of super deduction of research and development expenses (Note) (159,451) (55,394) Tax effect of tax losses not recognised 13,099 23,909 Utilisation of tax losses previously not recognised (119,253) (737) PRC withholding tax on distributable profits of the PRC subsidiaries 93,587 74,968 PRC withholding tax on interest income 2,525 1,448 PRC withholding tax on royalty income 70 36 Danish withholding tax on license fee income 143,390 – Effect of tax concessionary rates granted to the PRC subsidiaries (125,710) (361,373) Effect of different tax rates of subsidiaries operating in other jurisdictions (125,154) (4,171) Others (3,470) (404) Tax expense for the year 446,871 631,077 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 2025 and 2024.