Annual Report 2025

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2025 108 The United Laboratories International Holdings Limited Annual Report 2025 20. INTANGIBLE ASSETS (Continued) In accordance with HKAS 36, the Group performed its annual impairment test for intangible asset not yet available to use by comparing its carrying amount with its recoverable amount. The calculation applied discount cash flow methodology, of which the cash flow projections are based on financial budget endorsed by management. The management of the Group determined no impairment loss (2024: no impairment loss) is required during the year ended 31 December 2025. The above intangible assets have finite useful lives. Such intangible assets are amortised on a straight-line basis at the following rates per annum. Development costs 10% to 20% Know-How 10% Notes: i. At 31 December 2025 and 2024, development cost of certain products have been capitalised as the management of the Group considers the recognition criteria of internally generated intangible asset has been satisfied as regulatory approvals before production have been obtained. The cost of intangible assets comprise of: 2025 2024 RMB’000 RMB’000 Semaglutide (note a) 127,788 90,074 Insulin degludec (note a) 45,489 21,875 Liraglutide (note b) 29,081 22,122 Animal related drugs (note c) 16,397 9,694 Insulin aspart (note d) 77,129 77,129 6-APA (note d) 4,447 4,447 Clavulanate potassium (note d) 9,200 9,200 Insulin glargine (note d) 69,408 69,408 Others (note e) 29,815 27,827 408,754 331,776 Notes: (a) There has been no amortisation (2024: no amortisation) for the development cost as the related products have not been put into production during the year ended 31 December 2025. (b) The development cost of the product has started to amortise (2024: no amortisation) as the related product has been put into production during the year ended 31 December 2025.