Annual Report 2025

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2025 109 The United Laboratories International Holdings Limited Annual Report 2025 20. INTANGIBLE ASSETS (Continued) Notes: (Continued) (c) Save for the capitalised development cost of certain products of RMB2,691,000 (2024: RMB537,000) has started to amortise in 2025, there has been no amortisation for remaining capitalised development cost during the year ended 31 December 2025 as the related product has not been put into production. (d) The capitalised development cost of Insulin aspart, 6-APA and Insulin glargine are amortised over 10 years and the capitalised development cost of Clavulanate potassium is amortised over 5 years which are the expected period for which they will bring future economic benefits to the Group. (e) The amounts have been fully amortised (2024: fully amortised) for the capitalised development costs related to products during the year ended 31 December 2025. ii. An amount of RMB54,081,000 (2024: RMB47,100,000), representing externally acquired technical Know- How in identifying processes for manufacturing finished products and protocols for fermentation/purification methodology. During the year ended 31 December 2015, two of the Know-How at a total cost of RMB47,100,000 had commenced amortisation starting from the date when they were put into production process. It is amortised over 10 years which is the expected period for which they will bring future economic benefits to the Group. Due to suspension of a product development, the management estimated the recoverable amount of it to be minimal as the future economic benefits are not probable to bring to the Group based on value in use calculation. As a result, a full impairment loss of RMB17,960,000 has been recognised on one of the Know-How of the relevant product development during the year ended 31 December 2018. During the year ended 31 December 2025, certain animal related veterinary drugs Know-How externally acquired from an overseas independent third party amounted to RMB6,981,000 has been recognised as intangible asset. No amortisation has been recognised in 2025 as the related know-how has not been put into production.