[年报]稳健医疗(300888):2021年年度报告（英文版）
原标题:稳健医疗:2021年年度报告（英文版） Dear shareholders, Thank you for your support, trust, help and companionship to Winner Medical! In 2021, the global economy faced unprecedented challenges in post-COVID-19 era. In China, with the rapid development of the Internet of Things (IoT), Cloud Services, Big Data and artificial intelligence (AI) technologies, as well as the rise of a low-carbon economy and a new generation of consumers gradually taking control of the discourse, Winner Medical ushered in new challenges and opportunities. In 2020, to deal with the sudden outbreak of the COVID-19 pandemic, Winner Medical, as one of the companies closest to the center of the affected area and one of the earliest responders, provided epidemic prevention products with fine quality and competitive prices for the majority of medical staff and anti-epidemic workers, making due contributions and creating good operating results. In 2021, by returning gradually to normal from the non-normal year of the pandemic, Winner Medical realized RMB 8.037 billion in revenue and RMB 1.239 billion in net profit attributable to shareholders of the listed company, both down from the previous year. I apologize that Winner Medical’s stock price fluctuated with the impact of the stock market due to greater uncertainties and more severe challenges imposed by the pandemic plus regional conflicts since 2021, bringing pressure and anxiety to our shareholders, though the Company significantly improved its performance in terms of development strategy, business scale and brand reputation compare to the pre-pandemic period. As the first person responsible for the Company, I am fully aware of my responsibilities, and never retreat in the face of difficulties, thus leading our team to conduct in-depth reviews, take every opportunity and fight on the frontline to achieve our strategic goals. We have always believed that it is important for companies to not only guarantee big short-term gains, but also make plans for future sustainable growth. The year 2022 marks the beginning of Winner Medical’s second thirty years. We can only live up to the expectations of our shareholders if we could continuously innovate, specialize in our business, excel in our operations, build a high-quality development business model, and drive Winner Medical to achieve high-quality, sustainable, and high-quality growth. Industry-leading R&D and Innovation The year 2021 marks the thirtieth year of Winner Medical’s existence. Over the past three decades, Winner Medical has been engaged in an industry that is small, with limited entry threshold and particularly severe inter-industry competition. How did Winner Medical manage to be the top in national export of medical dressings in its first ten years? It is because that we expand by wining the trust of international customers with outstanding quality and services and getting more cooperation opportunities and orders thanks to quality and integrity, while most companies made quick money and competed for customers with lower prices. We took the lead in building our own spinning and weaving mills, relying on the reliability and stability of raw material quality to ensure the quality of finished products, while others did not realize the quality of veil is the bottleneck of gauze quality which determines the quality of finished products. We rapidly adjusted strategies by closing spinning and weaving mills, focusing on and successfully developing pure cotton spunlace non-woven fabric, which became “a great innovative technology in the textile industry”, while our counterparts produced spinning and weaving on a large scale. We gained market insights and consumer trends and keenly developed more than 10 world-first products, including cotton tissues, wet tissues, sanitary pads with pure cotton surface, baby diapers with pure cotton surface and non-woven disposable underwear, while competitors imitated our pure cotton spunlace non-woven fabric proprietary products. We stick to the “cotton fiber only” principle, and created Purcotton with the vision of “changing the world with pure cotton”, while our counterparts imitated our products with chemical fibers. Ten years ago, we started to independently develop silica gel technology, foam technology and antibacterial technology, focusing on the research and development of basic materials for high-end wound dressings. Nowadays, foam dressings and silica gel dressings are recognized and purchased by international famous brands, and gradually become the “domestic alternative” high-quality, high-end wound dressings for the Chinese market. During the COVID-19 pandemic period in 2020, to deal with the severe shortage of raw material supply for epidemic prevention materials, we independently developed the base material for pure cotton non-woven protective clothing and isolation gowns, which not only solved the problem of raw material supply, but also achieved comfort, breathability and environmental protection, receiving praise from medical staff. …… All the above showed our determination to remain true to our original aspiration, insist on innovation, do things the right way, and take our own road with down-to-earth attitude. Winner Medical has been committed to perfecting each product and wholeheartedly serving every customer since its establishment, and it has never put profits first nor attempted to make great fortune overnight. At the early stage of establishment, we worked with the enterprises in developed countries and their management, and learnt from their high requirements for product quality, strict standards, methods of work for excellence, and attention to details, which were integrated into the ideological methods and working attitudes of Winner Medical entrepreneurs, laying the foundation for Winner Medical people to attach importance to product quality and excellence, and to take the high quality and high-quality route from the very beginning. Why are good companies built to last? I believe that the sense of mission, the pursuit and the dream are the key to sustaining a company to grow, and employees who recognize the company’s values have the willingness to spend their life contributing to the society. Only the sense of mission allows us work hard, never forget to create value for our customers and shareholders, and make our due contribution to our country. These ideas determine the strategic positioning of Winner Medical and build the vision, mission and values of the Company. From 1991 to 2021, Winner Medical refined itself in the wind and waves, moved forward by exploration, and developed into a health enterprise specialized in both medical and consumption products under its three brands: Winner, Purcotton, and PureH2B from a single manufacturer of medical supplies through continuous innovation and expansion of industrial boundaries. High quality development with careful planning Winner Medical will be better in its second thirty years. We will continue to learn from valuable experience accumulated in the first thirty years, and stick to the values of “working hard, responsibility, innovation, self-criticism, and long-termism” with the vision of “To enhance your health, life and well-being”. In face of the new journey, we set goals and realization path for Winner Medical’s sustainable high-quality development. Focusing on the field of health product system, Winner Medical must be rooted in the real economy, improve overall quality and efficiency, and achieve high-quality corporate development through the virtuous cycle of the industrial chain, supply chain and innovation chain. To achieve high-quality development, we should work on the basis of digital operation, take smart manufacturing as the core and innovation as the driving force, so as to develop into an efficient, energy-saving, low-carbon, environmentally-friendly company, with high-quality talents and high-performance business model. Smart manufacturing as the key to high-quality development, especially in the field of manufacturing, should be realized through the following two methods: first, replacing the single device with a fully automated assembly line for operation; second, replacing the simple assembly line with uninterrupted production, which is the only way to create an intelligent production plant armed with AI technology, thus completely displacing manual labor to build unmanned assembly lines, workshops, black light workshop, and then the lighthouse plant. The innovation driver of Winner Medical must be products, from product design, manufacturing, packaging, logistics, delivery, to a series of processes such as intelligent manufacturing for deep innovation. Only by continuously enhancing the irreplaceability of our products, continuously tapping the market potential and continuously improving the quality of our products and services can we win customers, the market and the future. In future, we will always consider technological innovation and product innovation as the driving force, continue to improve its product portfolio, and further consolidate its leading position in the healthcare industry. In the field of medical consumables, the Company will continue to develop and produce high-end wound dressing products, optimize product structure, strengthen research and development of core basic raw materials, enhance product market competitiveness, and vigorously promote the application of pure cotton spunlace non-woven fabrics to medical and protective supplies. In the field of healthy living consumer products, the Company will continue to position “comfortable, healthy and eco-friendly” brands, focus the technical researches on new technology, new structure and new functions of yarns and fabrics, strengthen studies on consumers’ behavioral and psychological characteristics, and develop and design products that “delight users”. Meanwhile, we will also enhance the main business through products and channels, expand industry chains and product lines through investment, mergers and acquisitions, and promote the Company’s long-term development through the outward expansion and internal growth. In the next thirty years, Winner Medical will pursue health and beauty with higher standards and “make life better” through its three brands. Eco-friendly business practices for good Winner Medical has been most proud of achieving sustainable development and green environmental protection. Over the past thirty years, Winner Medical has never simply pursued the maximization of corporate profits in any events, and has never given up its reverence for nature and the protection of the environment in any cases. Self-discipline with awe Winner Medical adheres to “altruism”, and follows the three core business principles of “Quality before profit, brand before speed, social value before corporate value”, which is not a slogan but truly integrated into the business practices of Winner Medical. Only by integrating the concept of business for good into the corporate development and always living up to it, can we truly survive. In the future, we should be more exemplary in carbon peaking and carbon neutrality, and take the lead in energy saving and environmental protection as well as carbon emission reduction. Our goal is to reach carbon peaking and carbon neutrality 3 years and 10 years ahead of the national timeline, respectively. Looking back to the past and forward to the future, Winner Medical will continue to make contributions to our motherland and walk with the times. In the future, we must always adhere to: 1. follow the Party, 2. concern about the country, 3. observe the three core business principles, 4. adopt altruism, 5. comply with customer thinking, 6. work hard, 7. keep operational excellence, 8. advance with the times, 9. persist in innovation, and 10. insist on self-criticism. We do not believe in “windfall” or “huge profits”, but will exert all our energies to the intrinsic value that affects the long-term development of the company -- pioneering innovation, caring for employees, in-depth product research, digital operation, energy saving and environmental protection... Take every step steadily. Winner Medical people has deeply engaged in the healthcare industry, integrated the needs of the times with market demand, unified product innovation with excellent management, and built a solid corporate moat. The second thirty years of Winner Medical will be more brilliant and beautiful! Li Jianquan April 20, 2022 The Board of Directors, the Board of Supervisors and directors, supervisors and senior management of the Company hereby guarantee that the statement in this Semi-annual Report is true, accurate and complete without false or misleading information or major omission and that they will assume all the legal liabilities, individually and jointly. Li Jianquan, the head of the Company, Fang Xiuyuan, the chief Financial Officer, and Wu Kezhen, the head of accounting office (accountant in charge), guarantee the authenticity, accuracy, and completeness of the financial report in this annual reporting period. All directors of the Company personally attended the board meeting for reviewing this report. In 2021, thanks to the overall effective control of the pandemic around the world, plus the significant increase in the production capacity of medical protective products, the sales price of such products decreased gradually to normal, resulting in obvious declines in revenues and profits of the Company’s medical consumables business. There were no changes in the Company’s main business, core competitiveness and major financial indicators, and its operation was consistent with industry trends; there was no overcapacity, continuous decline or technological substitution in the industry in which it operates; and there was no significant risk to the Company’s ability to continue operating. The forward-looking contents in this annual report, such as the future development strategy and performance planning, are the goals sets by the Company, which are planned matters. The achievement of the goals depends on many factors, including market change, which is uncertain. So these contents are not the Company’s profit forecast for the next year and do not constitute a substantial commitment of the Company to investors and related parties. Investors and related parties should be fully aware of related risks and understand the differences among plans, forecasts, and commitments. Investors are asked to beware of investment risks! The profit distribution plan approved by the Board of Directors is as follows: a cash dividend of 9.00 yuan (including tax) for every 10 shares to all shareholders, 0 bonus shares (including tax) and 0 shares to be transferred to all shareholders from capital reserve for every 10 shares. Contents Section 1 Important Notes, Contents, and Definitions......................................................................... 6 Section 2 Company Profile and Major Financial Indicators .............................................................. 11 Section 3 Management Discussion and Analysis ............................................................................... 16 Section 4 Corporate Governance ....................................................................................................... 83 Section 5 Environmental Protection and Social Responsibility....................................................... 104 Section 6 Important Issues ............................................................................................................... 111 Section 7 Changes in Shares and Shareholders ............................................................................... 123 Section 8 Preferred Shares-related Information ............................................................................... 131 Section 9 Bond-related Information ................................................................................................. 132 Section 10 Financial Statements ...................................................................................................... 133 Document Catalog (I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of accounting work, and the person in charge of the accounting office (accountant in charge). (II) The original auditor’s report containing the seal of the accounting firm and the signature and seal of the certified public accountant. (III) The originals of all company documents and announcements publicly disclosed during the reporting period. Definitions
I. Company Profile
Accounting firm engaged by the Company
□ Applicable √ Not applicable V. Major Accounting Data and Financial Indicators Whether the Company needs to retroactively adjust or restate the accounting data of the previous years □Yes √No
lower, is negative, and the auditor’s report for the latest year shows that there are uncertainties about the Company’s sustainable operation ability. □Yes √No The net profits before or after the deduction of non-recurring profit and loss, whichever is lower, is negative □Yes √No VI. Key Quarterly Financial Indicators Unit: yuan
1. In Q1, the net margin was higher due to the delivery in Q1 2021 of some higher-priced orders for exports in 2020; in Q2/3/4 2021, with the impact of market supply and demand for protective products and price retreat, net profit margin gradually declined; in Q4, the net margin became lower mainly due to the higher level of marketing expenses in the “Double Eleven” campaign for healthy consumer goods compared to other quarters, as well as the impact of equity incentive expenses. 2. The reasons for the large difference between net cash flow from operating activities and net profit in each quarter: (1) the lower net cash flow from operating activities in Q1 was mainly due to the Company’s 100% pre-receipt credit policy for protective products in 2020 and more pre-receipt from customers in 2020; (2) the lower net cash flow from operating activities in Q2 was mainly due to the payment of corporate income tax by income tax remittance in 2020; (3) the change in net cash flow from operating activities in Q3 was mainly due to the payment for the “Double Eleven” stock preparation in Q2 and Q3; and (4) the return of sales funds was achieved in Q4. Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicators related to the quarterly report and semiannual report disclosed by the Company □Yes √No VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards 1. Differences between net profits and net assets in financial statements disclosed according to the International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously □ Applicable √ Not applicable No difference between net profits and net assets in financial statements disclosed according to the International Accounting Standards (IAS) and Chinese Accounting Standards during the reporting period. 2. The difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards (IAS) and Chinese Accounting Standards simultaneously □ Applicable √ Not applicable No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards and Chinese Accounting Standards during the reporting period. VIII. Non-recurring Profit and Loss Items and Amount √Applicable □ Not applicable Unit: yuan
□ Applicable √ Not applicable The Company does not have details of other profit and loss items that conforming to the definition of non-recurring profit and loss. Information on the definition of non-recurring profit and loss items enumerated in “Interpretative Announcement No. 1 on Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as the recurring profit and loss items □ Applicable √ Not applicable No definition of non-recurrent profit and loss items enumerated in the “Interpretative Announcement No. 1 on Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurring profit and loss items during the reporting period. I. The industry in which we operate The Company is required to comply with the disclosure requirements of “Textile and Apparel Business” in the “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 -- Industry Information Disclosure” 1. Industry definition According to the Classification Rules of Medical Devices (2015) (Order No. 15 of the China Food and Drug Administration) and the Classification Catalogue of Medical Devices (Notice No. 104 of the China Food and Drug Administration in 2017), the medical dressings produced and sold by the Company belong to the nursing and protective devices in medical devices. According to the Industry Classification of National Economy (GB/T4754-2017) and the Industry Classification Guidelines for Listed Companies (revised in 2012), the industry of the Company is special equipment manufacturing industry (C35) in manufacturing industry (C). The products of the Company's healthy consumer goods include pure cotton tissues, sanitary pads with pure cotton surface, cotton wet tissues and other non-woven consumer goods, baby supplies, baby clothing, adult clothing and other textile consumer goods. According to the Industry Classification of National Economy (GB/T4754-2017) and the Industry Classification Guidelines for Listed Companies (revised in 2012), the consumer goods operated by the Company mainly belong to the textile industry (C17) and the textile and apparel industry (C1 8) in the manufacturing industry (C). 2. Development of the industry (1) Development of medical consumables industry at home and abroad Medical consumables refer to the medical and health materials used in the process of clinical diagnosis and nursing, testing and repair. With a wide variety of models and wide application, they are important materials for medical institutions to carry out daily medical and nursing work. From the perspective of value, medical consumables can be divided into high-value medical consumables and low-value medical consumables. Data source: China Medical Consumables Market Conditions and Investment Prospect Survey Report 2021-2026, China Medical Device Blue Book , Chinese Medicine, IBM Report Data source: China Medical Device Blue Book , Chinese Medicine, Magna Information Centre, IBM Report Compared with high-value medical consumables, low-value medical consumables are mainly injection and punching, medical dressings and medical polymers, with low entry threshold and fierce market competition. Due to the wide application and benefit from the improvement of people’s living standards and the continuous growth of medical demand in China, the market space of low-value medical consumables is huge, and will continue to maintain high-speed growth in the future. According to the research and analysis of IBM, it is estimated that the market scale of low-value medical consumables in China will reach 221.3 billion yuan by 2025. ① Market development of operating room infection control products Due to the growth of the number of surgical operations and the strengthening of infection control measures, the market of operating room infection control products is growing continuously. According to the statistics of CMI, the domestic market size of operating room infection control products is expected to reach USD 3.688 billion in 2026, with an average annual compound growth rate of 4.9%. Operating room infection control products can be divided into reusable products and disposable products. Compared with the reusable products, the disposable surgical infection control products can significantly reduce the risk of cross infection. According to Coherent, disposable operating room infection control products can reduce the risk of cross infection during surgery by 60%. The Guide to Operating Room Nursing Practice compiled by the Operating Room Professional Committee of Chinese Nursing Association also recommends the use of disposable aseptic products in the operating room to reduce the risk of cross infection during surgery. At the same time, disposable operating room infection control products also have advantages in convenience compared with reusable products, which makes the demand for disposable products more active. Compared with a single product, the market scale of customized surgical packs will show a rapid growth trend. According to the statistics of CMI, the market size of global customized surgical packs is expected to grow to USD 21.347 billion in 2026, with an average annual compound growth rate of 10.2%. In China, the market size of customized surgical packs is expected to rise to USD 1.504 billion, with an average compound annual growth rate of 12.2%, which is quite promising. ② Market development of high-end wound dressing products Compared to the traditional wound dressings, high-end wound dressings are able to control exudate and have better breathability, without adherence to the wound, new tissue injury and bacterial infection. The representative products include hydrogel dressings, hydrocolloid dressings, transparent film dressings, foam dressings, alginate dressings, etc. Judging from the global trend, the demand for high value-added and multifunctional medical dressings made of new materials is increasing, and the high-end medical dressing industry will usher in good development opportunities. According to the research compiled by QYResearch, the global high-end wound dressings market size reached USD 5.846 billion in 2020, expecting to reach USD 7.230 billion in 2027. include increasing aging population, increasing awareness of high-end wound dressings, increasing number of road accidents and burn cases, and high incidence of diabetic wounds and chronic infections. Most of the sales of Chinese enterprises producing high-end wound dressings are still focusing on overseas markets, and after years of development, the product quality has reached a higher level in the world and gained recognition in the international market. With the rising consumption level of domestic residents, the rising awareness of medical care, the popularization of domestic home care system, and the gradual convergence with international advanced medical care knowledge, there will be a prosperous high-end wound dressings consumption market in China. In recent years, the relevant government departments and agencies have introduced supporting policies, showing a general trend of gradual replacement of international brands by domestic brands. There will also be a greater space in the high-end medical dressings business for domestic-manufactured products, and China’s market concentration will be improved. (2) Development of consumer goods segmentation industry ① Development of cotton tissues Because of its more environmental protection and less sensitization, pure cotton tissues can replace traditional paper products and towels, with increasing market penetration. According to the “China’s Cotton Tissues Industry Status and Development Trend Research Report 2019-2025” published by the ChinaIRN Industry Research Institute, based on product attributes, production efficiency, environmental protection and other advantages, people are more willing to pay higher prices for high-quality products for infants, maternity, people with sensitive skin and people with frequent beauty makeup and skin care needs, so cotton tissues product awareness is rapidly increasing, promoting the rapid growth of market demand. China’s cotton tissues market demand reached 32.5 billion in 2020, up 39.72% YoY, with a compound annual growth rate of 101.62%, in a high-speed growth phase. The Company set a new product category for cotton tissues and led the rapid growth of the cotton tissues segment. In 2021, Purcotton as the first drafting unit to participate in the development of national standards for cotton tissues, and thanks to the increasingly strict environmental regulation, this segmentation will become more mature and standardized. ② Development of disposable sanitary products industry According to Euromonitor statistics, the market of absorptive care products in China increased from 128.9 billion yuan to 175.4 billion in 2015-2020, with an average annual compound growth rate of 6.4%. Among them, female health care products increased from 74 billion yuan in 2015 to 89.1 billion yuan in 2020, with an average annual compound growth rate of 3.8%. As Chinese women’s health care awareness and consumption ability continue to rise, consumers are paying more and more attention to product quality, focusing on functionality, material safety and product experience, leading to the increasing proportion of medium- and high-end sanitary napkin consumption. The market scale of infant diapers increased from 47.9 billion yuan in 2015 to 70.3 billion yuan in 2020, with an average annual compound growth rate of 8.0%. Thanks to urbanization and the increase in per capita disposable income of rural residents, the penetration rate of the sinking market for infant diapers will be significantly increased. The market scale of adult incontinence products increased from 1.6 billion yuan in 2015 to 5.1 billion yuan in 2020, with an average annual compound growth rate of 26.7%. Since the overall development of adult incontinence products in China is lagging behind the feminine sanitary pads and infant diapers market, it is still in the introduction period. Considering multiple factors such as growing life expectancy per capita, increasing number of elderly population, increasing disposable income per capita and increasing hygiene and health awareness, China’s adult incontinence products market is at a stage of rapid growth in sales and market penetration. The market scale of wet tissues increased from 5.4 billion yuan in 2015 to 10.9 billion yuan in 2020, with an average annual compound growth rate of 15.3%. At present, the market is dominated by baby wet tissues and general-purpose wet tissues. Female hygiene wet tissues, makeup removal wet tissues, home cleaning wet tissues and other categories account for a relatively small proportion, so there is a large market space to develop. ③ Development of textile industry and textile clothing and apparel industry The year of 2021 was the 20th anniversary of China’s accession to the World Trade Organization. China has become the world’s largest producer and consumer of textiles and clothing. The sales of specialized retail goods of textiles, clothing and daily necessities increased from 70.302 billion yuan in 2007 to 667.640 billion yuan in 2019, with an average compound annual growth rate of 20.63%. Among them, the sales of textile, clothing and daily necessities in chain retail enterprises have increased rapidly in recent years, reaching 144.802 billion yuan in 2019. The development of e-commerce industry also led to the transformation and upgrading of textile, clothing and daily necessities industries. According to the statistics of China National Textile And Apparel Council, the total volume of e-commerce transactions of textile and clothing in China in 2019 was 6.69 trillion yuan, accounting for 19.22% of the total volume of national e-commerce transactions, which is the most active trading category of e-commerce platform. Among them, the scale of online retail of textile and apparel is 1.67 trillion yuan, accounting for 19.59% of the total online retail sales of physical goods. ④ Development of maternal and child supplies industry （未完）  |