Annual Report 2025

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2025 84 The United Laboratories International Holdings Limited Annual Report 2025 5. REVENUE AND SEGMENT INFORMATION (Continued) (ii) Performance obligations for contracts with customers and revenue recognition policies Sales of products Revenue is recognised at a point of time when control of the goods has been transferred, being when the goods have been delivered to port of discharge or the customer’s specific location as stipulated in the sales agreement. The Group satisfied its performance obligations upon shipment or upon delivery in accordance with the contract signed with customers, who start to bear the risks of obsolescence and loss in relation to the goods. License fee income The Group provides license of its patented intellectual property to a customer and revenue is recognised when the customer obtains rights to access or use the underlying patented intellectual property. License fee income is recognised at a point in time upon the customer obtains control of patented intellectual property. (iii) Transaction price allocated to the remaining performance obligation for contracts with customers Contracts for sale of pharmaceutical products are typically non-cancellable. The contracts for sales of products have expected duration of one year or less. As permitted under HKFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed. Segment information HKFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker (“CODM”) (i.e. executive directors of the Company) for the purpose of allocating resources to segments and assessing their performance. The three revenue streams are the operating and reportable segments of the Group on which the Group reports its primary segment information.