Annual Report 2025

MANAGEMENT DISCUSSION AND ANALYSIS 14 The United Laboratories International Holdings Limited Annual Report 2025 Animal Healthcare The animal healthcare business of the Group is principally engaged in the research and development, production, sales and technical services of economic and companion animal medicines, covering medicines for livestock, poultry, aquatic products and pets. During the year, we launched 15 new animal healthcare products and obtained a total of 9 new veterinary drug registration certificates ranging from Class II to Class V. The Group continues to drive the dual-engine development of its economic animal and companion animal businesses. Leveraging its industrial advantages, it is building global capabilities spanning R&D, production, and sales. Simultaneously, it continues to promote the “going global” of its animal healthcare business, actively creating benchmark markets to develop replicable internationalisation experience, and gradually radiating its presence across the global business landscape. The Group has a total of 88 overseas product registrations that have been obtained or are currently in progress. During the year, the animal healthcare segment recorded sales of RMB1,228.9 million, representing a year-on-year decrease of 11.1%. Pharmaceutical Research and Development The Group regards innovative R&D as the core engine driving enterprise development, continuously increasing R&D investment and attracting scientific talents. Through diversified collaboration models such as independent R&D and cooperative development, it expanded its innovative product pipeline, enhanced new drug R&D and clinical capabilities, and accelerated the development and practical application of innovative technologies and products. During the year, the Group invested a total of RMB1,005.0 million in pharmaceutical research and development, with a year-on-year increase in R&D of 2.0%, including expensed R&D investment of RMB921.0 million and capitalisation of R&D investment of RMB84.0 million. The Group has established a comprehensive research and development system composed of multiple platforms, including biological research and development, chemical drug research and development, biological fermentation and chemical, enzymatic synthesis research and development, animal healthcare research and development and clinical research center. At present, the Group had 42 new drug products under development, of which 23 products are Class 1 new drugs, focusing on the areas of endocrinology, metabolism, autoimmunity, ophthalmology and anti-infection; There are a total of 60 new animal healthcare products under development, fully covering economic and companion animals. Furthermore, projects related to APIs, medical aesthetics, and the quality and efficacy consistency evaluation of generic drugs are progressing steadily.