Annual Report 2025

MANAGEMENT DISCUSSION AND ANALYSIS 11 The United Laboratories International Holdings Limited Annual Report 2025 BUSINESS REVIEW In 2025, the Group achieved significant progress in drug launches, production submissions, clinical studies, and the out-licensing of new drug projects. At the same time, a refined production and supply system, together with precise and efficient marketing strategies, progressed in tandem, enabling the steady development of all business segments and consolidating the Group’s industry-leading position. During the year, the Group recorded revenue of approximately RMB13,210.6 million, representing a year-on-year decrease of 4.0%. Intermediate Products and Bulk Medicine Business During the year, affected by declining market prices and demand adjustment, the Intermediate products and Bulk medicine segments recorded external sales of RMB1,612.4 million and RMB4,900.4 million respectively, representing a year-on-year decrease of 39.4% and 23.1%, respectively. Overseas export recorded sales of RMB2,015.0 million, decrease of 23.8% and accounted for 15.3% of total revenue of the Group. As one of the world’s largest producers and exporters of bulk medicines, China holds a dominant position in several key categories, including antibiotics and vitamins. Leveraging a comprehensive chemical infrastructure, mature fermentation technologies, and large-scale production capabilities, China has established the world’s most cost-competitive API industrial chain, providing stable, high-quality raw material assurance for the global pharmaceutical industry. Concurrently, amidst current market demand adjustments, intensified industry competition, the continuous deepening of domestic pharmaceutical centralised procurement, and a complex and volatile international trade environment, the upstream sector is undergoing profound transformation and ecological reshaping. Mr. Leung Wing Hon Vice-Chairman