[年报]稳健医疗(300888):2024年年度报告（英文版）
原标题:稳健医疗:2024年年度报告（英文版） The year turns, a new chapter begins. As we review the introducing advanced production equipment and processes, achievements of 2024 and look ahead to the future, on behalf we optimize production workflows and enhance production of Winner Group, I would like to extend my sincerest greetings efficiency. Through the utilization of photovoltaic green electricity, and heartfelt gratitude to all our shareholders for your continued heat energy recovery, and energy-saving and emission reduction support and trust! measures, we reduce energy consumption and pollution, and achieve a win-win outcome for both economic and environmental The past year witnessed a complex and ever-changing global benefits.economic landscape and increasingly fierce market competition. Thanks to the tireless efforts of all our colleagues and the steadfast Brand is the soul of an enterprise and the emotional bond support of our shareholders, Winner Group has maintained overall between enterprises and consumers. Therefore, we have actively stable operations and achieved steady progress on our path of expanded brand communication channels to enhance brand high-quality development. awareness and reputation. At the second China International Supply Chain Expo, we, as a representative of the industry, Throughout 2024, we remained true to the Winner Group’s vision of offered insights and suggestions for China’s supply chain “Caring Health, Cherishing Life, and Protecting the Environment development, and showcased the unique charm of Chinese for A Better World” as we forged ahead with perseverance. It cotton and the exceptional quality of our pure cotton products is a beacon illuminating our path forward amidst challenges. We under the theme “Chinese Cotton: One Cotton, One World”. In firmly believe that a company’s value lies not only in generating 2024, Winner Medical conducted over 350 professional product economic benefits but also in making positive contributions training sessions for domestic and foreign medical professionals, to society and well-being of human. Therefore, we consistently contributing to the advancement of medical and nursing adhere to our core business principles “Quality over the Pro t, techniques within the industry. Through innovative campaigns, Brand over the Speed, Social Value over the Corporate Value” Purcotton solidified its brand image as comfort commitment, throughout our operations to provide consumers with the highest health assurance, eco-consciousness, warm, and empowering. quality, safest, and most environmentally friendly products and The Purcotton 15th Anniversary Celebration and “Cotton services. Field Runway Show” was a spectacular fusion of fashion and environmental consciousness, captivating countless consumers. Embracing the wave of innovation-driven development, Winner At the Purcotton Home Textiles and Loungewear Global Brand Group remains at the forefront of ongoing technological innovation Ambassador meeting, the ambassador unveiled the secrets of and product upgrades through research and development. In the cotton’s softness and comfort, further elevating brand visibility. medical sector, our dedicated R&D team has achieved significant breakthroughs in the independent supply of base materials for Global presence was another key strategic initiative for Winner product such as advanced wound dressings, PC substrates, Medical in the past year. The successful acquisition of the USA- and radiation-protective clothing. Our collaborative project based GRI filled our production capacity gaps in the US, Vietnam, with universities on biomimetic artificial corneas has made key and the Dominican Republic, optimizing our supply chain progress, with successful pilot testing of the collagen extraction structure and opening new doors to international markets. Our process, opening up exciting possibilities for future diversification own brands have now entered numerous international markets, in the field of biomaterials. In the consumer sector, Purcotton has steadily increasing our global brand influence as Winner Medical independently developed six Cotton Tech technologies focusing confidently strides onto the world stage. on Cotton Soft, Cotton Breathable, Cotton Warm, Cotton Cool, Cotton Anti-UV, Cotton Anti-Bacterial, maximizing the inherent As the “14th Five-Year Plan” nears its end and the “15th Five- benefits of cotton and establishing a robust technological Year Plan” is on the horizon, 2025 represents a pivotal year. We moat. These new fabrics significantly enhance the comfort and are full of confidence in the development of the Chinese economy functionality of our pure cotton products, perfectly aligning with and firmly believe that Winner Group will continue its steady consumer aspirations for a high-quality lifestyle. Additionally, sustainable progress on the path of high-quality development. we actively promote intelligent and green manufacturing. By Currently, the medical sector faces numerous opportunities Green Development: Utilize digitalization and artificial intelligence related to aging populations, chronic diseases, domestic technologies to drive the construction of a green ecosystem substitution, and internationalization. The consumer sector is across the entire industrial chain, achieve a virtuous cycle also experiencing renewed vitality with the rise of the Guochao between economic development and environmental protection, economy and the growing preference for green and low-carbon and establish a resource-conserving and environmentally friendly consumption. Our products are characterized by high and company.essential demand, excellent brand reputation and product quality, and our commitment to environmental protection resonates Looking back at our journey, Winner Group has weathered five deeply with doctors and patients and consumers, granting us a economic cycles and navigated numerous economic crises. unique competitive advantage. Throughout the journey, we have remained steadfast in our original aspirations, and continuously accumulated, inherited, “ This year, I put forward the goal of Centennial Visionary Winner – and carried forward our values. We understand that corporate ” Brand Advancement . This serves as both a summary of Winner success is not achieved overnight but is the result of consistent ’ Group s past and a roadmap for future development. To achieve efforts and relentless dedication over time. this goal, we have formulated six strategic directions: In the days to come, we will be driven by product leadership, Product Leadership: Focus on technological innovation to supported by operational excellence, guided by global presence, enhance product value and differentiation, breaking free from led by brand building, secured by talent strategy, and grounded the constraints of homogenized competition and injecting strong in the principles of green development, steadfastly advancing “ ” momentum into high-quality development. towards our Centennial Visionary Winner goal.Operational Excellence: Integrate digitalization and AI technologies Finally, I would like to once again express my sincere gratitude to to comprehensively improve production efficiency and product all our shareholders for your trust and support. In the future, we quality control precision. Establish seamless internal data links, will continue to strive to meet the needs of customers, enhance refine operations, implement precision marketing, and enhance our core competitiveness and market value, and make even customer satisfaction. greater contributions to society. Let us work together to create a brighter future for Winner Group! Global Strategy: Optimize global resource allocation and directly engage in international collaborations to overcome trade barriers and establish unique international trade models, propelling our brand onto the global stage. Brand Advancement: Cultivate a lasting positive impression in the minds of consumers through unique brand symbolism and Li Jianquan cultural connotations. Differentiated brand advantages will Chairman and General Manager strengthen market competitiveness and help us avoid price wars.April 29, 2025 “ ” Talent Strategy: Adhere to a Four-High Talent Strategy to attract “ and cultivate talent characterized by High Personal Quality; High ” Academic Qualifications; High Performance; High Reward , so as to provide intellectual support for our growth and stimulating employee creativity and enthusiasm. Important Notes The Board of Directors, the Supervisory Committee, and the Directors, Supervisors, and senior management of the Company guarantee that this annual report is truthful, accurate, and complete; it contains no false records, misleading statements, or significant omissions; and they bear individual and joint legal liabilities.Li Jianquan, the Company’s principal executive officer, Fang Xiuyuan, the person in charge of accounting affairs and Zhao Yan, the person in charge of the accounting department (chief accounting officer) declare that they guarantee the truthfulness, accuracy, and completeness of the financial report in this annual report.All Directors have attended the Board of Directors meeting to review this report.The forward-looking statements contained in this annual report, regarding future development strategies, performance plans, and other similar matters, represent the Company’s goals and are of a planning nature. Their realization depends on various factors, including changes in market conditions, and therefore involves uncertainties. These statements do not constitute a forecast of the Company’s future profitability nor do they represent a substantive commitment to investors or other stakeholders. Both investors and other stakeholders should maintain sufficient awareness of the risks involved and understand the differences between plans, forecasts, and commitments. Investors are advised to exercise caution and be aware of investment risks.The profit distribution plan approved at this Board of Directors meeting is as follows: based on 582,329,808 shares, a cash dividend of RMB2.50 (tax inclusive) for every 10 shares will be distributed to all shareholders. No bonus shares (tax inclusive) will be distributed, and no shares will be converted from capital reserves.The Company’s total cash dividend for 2024 amounted to RMB378,514,375.20 (tax inclusive), accounting for 54.43% of the net profit attributable to ordinary shareholders of the listed company for the year 2024, which includes (1) the total cash dividend of RMB232,931,923.20 (tax inclusive) for the 2024 interim period to all shareholders with a cash dividend of RMB4.00 (tax inclusive) per 10 shares; (2) the proposed total cash dividend of RMB145,582,452.00 (tax inclusive, subject to approval by the general meeting) to all shareholders with a cash dividend of RMB2.50 per 10 shares.Definitions Term Definition Winner Group, Company Winner Medical Co., Ltd. Reporting Period January 1, 2024 to December 31, 2024 Winner Medical Serious medical care under the medical sector and consumer medical care sectorPurcotton Shenzhen Purcotton Technology Co., Ltd., a wholly-owned subsidiary of the CompanyLongterm Medical Zhejiang Longterm Medical Technology Co., Ltd., a company in which the Company acquired a 55% stake in 2022 Winner Medical (Hunan) Winner Medical (Hunan) Co., Ltd., a company in which the Company acquired a 68.70% stake after acquisition and capital increase in 2022 Winner Guilin Winner Guilin Latex Co., Ltd., a company in which the Company acquired a 91.74% stake in 2022 Junjian Medical Shenzhen Junjian Medical Device Co., Ltd., a company in which the Company acquired a 100% stake in 2022 GRI Global Resources International, Inc., a company in which the Company acquired a 75.20% stake in 2024 Winner Medical Winner Medical (Huanggang) Co., Ltd., a wholly-owned subsidiary of the Company(Huanggang) Winner Medical (Jiayu) Winner Medical (Jiayu) Co., Ltd., a wholly-owned subsidiary of the CompanyWinner Medical Winner Medical (Chongyang) Co., Ltd., a wholly-owned subsidiary of the Company(Chongyang) Winner Medical (Jingmen) Winner Medical (Jingmen) Co., Ltd., a wholly-owned subsidiary of the Company Section II Company Profile and Key Financial Indicators Section II Company Profile and Key Financial Indicators Company Overview Founded in 1991, Winner Group (300888.SZ) went public on the Shenzhen Stock Exchange in September 2020. Through 34 years of exploration and practice, it has evolved into a holistic health enterprise, synergistically converging medical innovation and consumer wellness ecosystems. Winner Group, driven by the vision of “Caring Health, Cherishing Life, and Protecting the Environment for A Better World”, owns two major brands: “Winner Medical” and “Purcotton”. Its products cover a wide range of segments including wound care, infection prevention, operating room consumables, personal care, home care, maternity and baby care, and home textiles and apparel. Adhering to the core business principles of “Quality over the Profit, Brand over the Speed, Social Value over the Corporate Value”, and guided by the development strategy of “Product Leadership, Operational Excellence, Global Vision”, the Company is pursuing dual-track advancement in medical and consumer goods sectors; driving collaborative expansion across domestic and global markets; enabling convergent growth of online and offline channels; upholding altruism and long-termism — committed to delivering safe, premium-quality, cost-effective, and experience-driven products and services for global users. Caring Health, Cherishing Life, and Protecting the Environment for A Better World!
Stock Abbreviation Winner Medical Stock Code 300888 Chinese Name 稳健医疗用品股份有限公司 Abbreviated Chinese Name 稳健集团 English Name Winner Medical Co., Ltd. Abbreviated English Name Winner Medical Legal Representative Li Jianquan F42, Building 2, Huilong Business Center, Beizhan Community, Minzhi Subdistrict, Longhua District, Registered Address Shenzhen; Winner Industrial Park, 660 Bulong Road, Longhua District, ShenzhenPostal Code for Registered Address 518131 On June 1, 2021, the Company’s registered address was officially changed from “Winner Industrial Park, 660 Bulong Road, Longhua New District, Shenzhen” to “F42, Building 2, Huilong Business Center, Registered Address Change History Beizhan Community, Minzhi Subdistrict, Longhua District, Shenzhen; Winner Industrial Park, 660 Bulong Road, Longhua District, Shenzhen” F42, Building 2, Huilong Business Center, Beizhan Community, Minzhi Subdistrict, Longhua District, Office Address Shenzhen Postal Code for Office Address 518131 Website https://winnermedical.cn Email [email protected] II. Contact Information Board Secretary Securities Representatives Name Chen Huixuan Xu Jia, Liu Yanxiang F42, Building 2, Huilong Business Center, F42, Building 2, Huilong Business Center, Address Beizhan Community, Minzhi Subdistrict, Beizhan Community, Minzhi Subdistrict, Longhua Longhua District, Shenzhen District, Shenzhen Tel. 0755-28066858 0755-28066858 Email [email protected] [email protected] III. Designated Locations for Information Disclosure and for Keeping RecordsStock Exchange Website for Disclosure of Shenzhen Stock Exchange (http://www.szse.cn/) the Company’s Annual Reports Media Name and Website for Disclosure of China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, CNINFO the Company’s Annual Reports (http://www.cninfo.com.cn/new/index)Location for Keeping the Company’s Annual Securities Department of the Company Reports IV. Other Relevant Information Accounting firm appointed by the Company Name of Accounting Firm Ernst & Young Hua Ming LLP Rooms 01-12, 17/F, Ernst & Young Tower, Oriental Plaza, 1 East Chang’an Avenue, Dongcheng Office Address of Accounting Firm District, Beijing Name of Signing Accountant Liao Wenjia, Chen Huijin Sponsor appointed by the Company for continuous supervision during the Reporting Period□ Applicable ? N/A Financial advisor appointed by the Company for continuous supervision during the Reporting Period□ Applicable ? N/A V. Key Accounting Data and Financial Indicators Does the Company need to retrospectively adjust or restate accounting data of previous year□ Yes ? No 2024 2023 YOY change 2022 Operating revenue (RMB) 8,977,853,631.73 8,185,022,057.20 9.69% 11,351,331,545.08Net profit attributable to shareholders of the listed company (RMB) 695,378,928.72 580,403,232.37 19.81% 1,650,717,282.64Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) 590,858,058.78 412,027,497.25 43.40% 1,561,049,828.29Net cash flow from operating activities (RMB) 1,265,755,266.70 1,063,326,232.23 19.04% 2,983,472,230.27Basic earnings per share (RMB/share) 1.19 0.98 21.43% 2.7900Diluted earnings per share (RMB/share) 1.19 0.98 21.43% 2.7900Weighted average return on net assets 6.07% 5.03% 1.04% 14.87%Change from the End of 2024 End of 2023 end of last year End of 2022 Total assets (RMB) 18,391,855,961.52 17,112,022,449.97 7.48% 18,252,727,626.66Net assets attributable to shareholders of the listed company (RMB) 11,151,279,644.56 11,533,224,328.00 -3.31% 11,719,585,811.13Note 1: Net profit after deducting non-recurring gains and losses this year increased by 43.4% year-over-year, primarily due to: 1. substantial impairment losses on goodwill last year; and 2. significant losses incurred from the disposal of infection control products and related equipment last year. The lower of the Company’s net profit before and after deducting non-recurring gains and losses was negative for each of the most recent three fiscal years, and the audit report for the most recent year indicates that there is uncertainty about the Company’s ability to continue as a going concern □ Yes ?No The lowest value among the Company’s audited profit before tax, net profit, and net profit excluding non-recurring gains and losses for the most recent fiscal year is negative □ Yes ?No VI. Quarterly Key Financial Indicators Unit: RMB Q1 Q2 Q3 Q4 Operating revenue 1,909,017,281.07 2,124,487,823.26 2,036,537,874.74 2,907,810,652.66Net profit attributable to shareholders of the listed company 182,424,811.95 201,725,567.26 168,816,611.93 142,411,937.58Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses 144,201,815.60 182,713,299.22 144,916,756.25 119,026,187.71Net cash flow from operating activities -163,462,761.04 356,796,277.80 294,326,265.64 778,095,484.30 Note: Revenue increased in Q4 2024, while profit declined. This was primarily due to a RMB90.74 million impairment charge on goodwill recognized during Q4. Are the aforementioned financial indicators or their aggregate amount materially different from the relevant financial indicators in the Company’s previously disclosed quarterly and interim reports□ Yes ?No VII. Differences in Accounting Data under Domestic and Overseas Accounting Standards 1. Differences in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards□ Applicable ? N/A The Company had no difference in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards during the Reporting Period.2. Differences in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese Accounting Standards□ Applicable ? N/A The Company had no difference in net profit and net assets between financial reports prepared under overseas VIII. Items and Amounts of Non-recurring Gains and Losses ? Applicable □ N/A Unit: RMB Item Amount in 2024 Amount in 2023 Amount in 2022 ExplanationGains and losses on disposal of non-current assets -2,083,378.10 -46,464,882.49 -39,993,220.64 Primarily due to a larger (including reversal of previously recognized volume of disposals impairment losses) of infection control product-related equipment in the previous year Government grants recognized in profit or loss 37,931,590.29 74,822,989.42 84,859,103.35(excluding those related to the company’s normal operating activities, consistent with national policy, granted based on established criteria, and having a continuing impact on the Company’s profit and loss) Changes in fair value and gains and losses from 87,767,017.20 172,439,376.04 78,921,808.85 Primarily due to a decrease the disposal of financial assets and financial in the purchase of liabilities held by non-financial enterprises wealth management (excluding effective hedging transactions products and changes directly related to the Company’s normal in their yields operating activities) Reversal of impairment losses on individually 0.00 0.00 assessed receivables Gain/loss on debt restructuring 1,788,767.41 Other non-operating income and expenses, 1,445,748.24 10,371,355.38 -13,810,132.25excluding the items above Less: Income tax effect 20,765,995.02 35,321,337.22 17,067,455.98Effect on non-controlling interests (after tax) 1,562,880.08 7,471,766.01 3,242,648.98Total 104,520,869.94 168,375,735.12 89,667,454.35 -- Details of other items classified as non-recurring gains and losses:□ Applicable ? N/A The Company had no details of other items classified as non-recurring gains and losses.Explanation on circumstances under which items specifically identified as non-recurring gains and losses in the Information Disclosure Interpretative Announcement No. 1 for Companies Publicly Issuing Securities – Non-recurring Gains and Losses are classified as items of recurring gains and losses ? Applicable □ N/A Item Reason I. Overview of the Company’s Industry during the Reporting Period The Company is subject to the disclosure requirements for “Medical Device Businesses” as outlined in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 4 – ChiNext Industry Information Disclosure The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 – Industry Information Disclosure 1. Industry Classi cation According to the Medical Device Classification Rules (2015) (Order No. 15 of the China Food and Drug Administration) and the Medical Device Classification Catalog (Announcement No. 104 of 2017 of the China Food and Drug Administration), the medical Low-value medical consumables are essential for medical activities, price competition. The “price for volume” strategy exacerbates and the industry demand is characterized by high frequency and competition, squeezing the profit margins of small and medium- necessity. According to YHResearch, the global market for low-value sized enterprises lacking technical barriers. Leading companies, consumables reached US$72 billion in 2023 and is projected to however, leverage their scale and cost control advantages to reach US$129.8 billion by 2030, with a compound annual growth rate gradually build competitive barriers and steadily increase industry (CAGR) of approximately 9.1% from 2024 to 2030. This vast global concentration. On the other hand, companies with strong R&D market exhibits a diversified competitive landscape. International capabilities are accelerating their transformation towards mid- companies from developed countries dominate the market through to-high-end segments. For example, through functional iteration their technological, distribution, and scale advantages, while shifting of medical dressings, basic hemostatic products are being the production of low-value-added products to emerging countries upgraded to wound repair solutions, significantly increasing with cost and manufacturing advantages. product value. This competition driven by technological innovation not only helps companies escape the price war dilemma but also The current domestic low-value medical consumables market is promotes the formation of a virtuous cycle of “product quality – highly fragmented, characterized by regional competition and clinical value – brand premium” within the industry. Under the product homogeneity, leading to significant industry polarization. dual influence of policy guidance and market forces, China’s On the one hand, traditional low-end products are impacted by low-value consumables industry is rapidly transitioning from a volume-based procurement and bidding mechanisms, intensifying “manufacturing advantage” to an “innovation advantage”. Global Overall Market Size of Low-Value Consumables (2019-2030)(RMB 100 million) 1,400 1,298 1,190 1,200 1,090 998 914 1,000 835 821 770 745 720 800 718 631 600 400 200 0 2019 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030ESource: YHResearch Research Report ② Developments of Surgical Site Infection Control Product Surgical site infection control products can be classified into reusable and disposable types. Disposable products, with Market their key advantage of significantly reducing the risk of cross-infection, are gradually replacing traditional reusable products. Surgical site infection control products are a vital component According to the research data of Coherent, using disposable of the low-value medical consumables market, primarily used surgical site infection control products can reduce the incidence in surgical settings as indispensable medical consumables of intraoperative cross-infection by 60%. Furthermore, disposable for invasive surgical procedures. According to statistics from products demonstrate significant advantages in clinical the National Health Commission, the compound annual growth practice, such as improved preoperative preparation efficiency rate of inpatient surgical procedures in China was 7.9% from and intraoperative convenience, further driving their market 2017 to 2022. This sustained growth in surgical volume lays the penetration. foundation for the steady expansion of the surgical site infection control product market. Regarding product iteration, customized surgical packs are Currently, the Chinese advanced wound dressing market is in a systematically replacing the traditional single-product supply model. period of both demand upgrade and import substitution, offering Compared to individual products, customized surgical packs can be broad prospects for future growth. The increasing elderly population, tailored to specific surgical types and surgeon preferences, better rising consumer spending, and growing healthcare awareness in improving surgical efficiency and safety while avoiding instrument China, coupled with the popularization of home care systems and the and material waste, thus lowering hospital costs and environmental adoption of advanced international medical and nursing knowledge, impacts. The customized surgical pack market has grown rapidly in are expected to drive the gradual replacement of traditional recent years. According to CMI, the global customized surgical pack dressings with higher-performance advanced wound dressings. On market is projected to reach US$21.347 billion by 2026, with a CAGR the policy front, the establishment of green channels for innovative of 10.2%. In China, this market is expected to reach US$1.504 billion, medical device approvals and reforms in the medical insurance with a CAGR of 12.2%, promising a substantial market opportunity. payment system provide dual support. With industry trends focused on cost control and quality upgrades, the growth of advanced wound dressings in the domestic market is expected to accelerate. ③ Developments of Advanced Wound Dressing Product Market Advanced wound dressings, with their clinical advantages With the increasing aging population, rising healthcare awareness, in controlling wound exudate, maintaining a moist healing and a growing number of surgical procedures in developed environment, preventing adhesions, and inhibiting bacterial countries, the demand for multifunctional, innovative, and high- growth, are gradually replacing traditional dressings and becoming value-added medical dressings is growing rapidly, presenting the standard solution for managing chronic and complex wounds. excellent opportunities for the advanced medical dressings industry. Representative products include hydrogels, hydrocolloids, and According to QYResearch, the global market for advanced wound foam dressings. Continuous material innovation and functional dressings reached US$6.56 billion in 2024 and is projected to reach integration are driving industry upgrades. US$7.779 billion by 2031, demonstrating a steady growth in market demand.(2) Developments of Consumer Goods Segment ① Developments of Cotton Tissues Industry Driven by policies to expand domestic demand and consumption With increasing health awareness and consumer spending upgrading, China’s consumer goods industry is experiencing a power, pure cotton tissues, due to their eco-friendliness and recovery characterized by “steady growth, quality improvement, hypoallergenic properties, are rapidly replacing traditional fabrics and structural optimization”. In terms of national policies, the and becoming a strong alternative to traditional paper tissues enhanced and broadened trade-in programs for consumer goods and towels, resulting in a steady growth in market penetration. and the newly issued Special Action Plan to Boost Consumption According to the 2019-2025 China Cotton Tissues Industry Status are significantly stimulating domestic demand and consumption. and Development Trend Research Report by Zhongyan Puhua In terms of consumer demand, people’s aspirations for a better Industry Research Institute, cotton tissues, with their superior life continue to grow, with consumer preferences shifting from physical properties, high production efficiency, and environmental “having it” to “having it good”. Rational consumption and advantages, have become deeply integrated into baby care, a focus on quality have become mainstream trends. With maternity care, sensitive skin management, and beauty and increasing health awareness, a growing focus on self-care, and skincare routines. The core consumer group’s willingness to the emergence of the silver economy, the demand for products pay a premium continues to strengthen, driving up both product and services centered on quality, health, and environmental awareness and demand. protection is continuously increasing. Simultaneously, growing national cultural confidence is driving the popularity of domestic According to Euromonitor, the global retail market size for brands and fueling the growth of the “Guochao” economy. cotton tissues reached approximately 78 billion pieces in 2024 and is experiencing a rapid growth. As a pioneer in this Aligned with contemporary consumer trends, Purcotton leverages category, Purcotton continues to lead industry development its three competitive edges – “Medical Heritage; Cotton-Centric through technological iteration and standard setting. In Philosophy; Quality DNA” – to pursue its vision of “Pure Cotton 2021, Purcotton served as the primary drafter for the national Changes the World”. Since its inception, Purcotton has focused standard for cotton tissues. Driven by both the “dual carbon” on “pure cotton”, adhering to high quality, craftsmanship, and policy and consumption upgrades, this niche segment is standards (exceeding industry standards), providing consumers transitioning from rapid growth to a new stage of standardized with comfortable, healthy, and environmentally friendly products. development, with the potential for continuous optimization of Purcotton has built a diversified product matrix encompassing industry concentration and profitability. both non-woven (cotton tissues, sanitary napkins, disposable travel products, etc.) and woven (baby apparel and products, adult apparel, bedding, etc.) categories.② Developments of Feminine Hygiene Product Industry to Euromonitor, the average price per piece increased from RMB0.74 to RMB0.93 between 2019 and 2024, demonstrating China’s feminine hygiene product industry has entered a stage the accelerating trend of quality-focused consumption. Currently, of high-quality development. Trends such as product structure there is a growing demand for “safe” sanitary napkins among upgrades and increased health awareness are driving steady female consumers, leading to a preference for medical-grade market growth. According to Euromonitor, the market size of and sterilized products. This premiumization is becoming a new China’s feminine hygiene products reached approximately engine for value growth in the feminine hygiene product industry. RMB105 billion in 2024 and is projected to reach RMB122 billion On the supply side, leading companies are building supply by 2029, with a CAGR of approximately 3.0% from 2024 to 2029.chain and technological moats through vertical integration from raw materials to manufacturing and the application of innovative With the continuous improvement of Chinese women’s health bioengineering technologies. This premiumization trend will awareness and purchasing power, consumer demand for product continue to increase market concentration and drive the industry quality continues to upgrade. Functionality, material safety, towards a development paradigm centered on technology and and user experience have become core concerns, driving the quality. increasing consumption of mid-to-high-end products. According Market Size of Feminine Hygiene Product Industry in China (RMB 100 million) 1,100 1,050 1,050 1,021 991 1,000 968 941 950 900 879 850 800 750 2019 2020 2021 2022 2023 2024 Source: Euromonitor Database ③ Developments of Baby & Child and Adult Apparel Industry According to Euromonitor, China’s underwear market reached RMB254.3 billion in 2024, a year-on-year increase of 2.1%. Driven Driven by the changing consumption patterns of modern by rising consumer awareness and advancements in production families, the children’s apparel market is evolving towards technology, the Chinese underwear market is expected to expand quality and refinement. With the deepening of the “refined further. Influenced by increased health consciousness and changing parenting” concept, parents’ demand focus is shifting from lifestyles, consumer evaluation criteria for underwear have shifted basic functionality to comprehensive considerations of quality from a singular focus on price to a comprehensive consideration and safety. Strict standards such as Class A safety standards, of safety, comfort, and functionality. On the one hand, basic safety eco-friendly fabric certifications, and durable craftsmanship attributes have become a baseline requirement, with standards such are increasingly becoming key purchasing decision factors. as zero formaldehyde and no fluorescent agents transitioning from According to Euromonitor, the Chinese children’s apparel recommendations to mandatory requirements. On the other hand, market grew from RMB239.1 billion in 2019 to RMB260.7 billion the demand for comfort is driving material innovation, including in 2024 and is projected to reach RMB296.4 billion by 2029. increased use of natural organic cotton, adoption of plant-based The children’s apparel industry still holds significant growth dyeing processes, and the implementation of details like seamless potential, particularly for brands with guaranteed quality and labels and boneless stitching. This consensus on quality baselines strong reputations. and technological innovation is creating sustainable value growth 感染防护感染防护 口罩口罩、、防护服防护服、、隔离衣等隔离衣等 高端伤口高端伤口 敷料敷料 硅胶类敷料硅胶类敷料、、藻酸盐敷料藻酸盐敷料 超吸敷料等超吸敷料等 传统伤口传统伤口 护理与包扎护理与包扎 医用棉类医用棉类、、纱布类纱布类、、 绷带类等绷带类等 健康个护健康个护 口鼻腔口鼻腔、、医美个护医美个护、、 护理护具等护理护具等 其他产品其他产品 注射穿刺产品注射穿刺产品、、 检测试剂盒等检测试剂盒等 手术室耗材手术室耗材 外科手套外科手套、、手术组合包手术组合包、、 手术衣等手术衣等 卫生巾卫生巾 卫生巾卫生巾、、安睡裤等安睡裤等 疗疗 品品 全全 产产 消消 医医 棉棉 材材 II. Main Operations of the Company during the Reporting Period The Company is subject to the disclosure requirements for “Medical Device Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 4 – Industry Information Disclosure for Growth Enterprise Market. The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 – Industry Information Disclosure. 1. Main operations of the Company Winner Group, driven by the vision of “Caring Health, Cherishing Life, and Protecting the Environment for A Better World”, owns two major brands: “Winner Medical” and “Purcotton”, specializing in medical and consumer segments, respectively. With continuous innovation and expansion of our business scope, our products cover a wide range of segments, including wound care, infection prevention, operating room consumables, personal care, home care, maternity and baby care, and home textiles and apparel. Adhering to the core business principles of “Quality over the Profit, Brand over the Speed, Social Value over the Corporate Value”, and guided by the development strategy of “Product Leadership, Operational Excellence, Global Vision”, the Company dedicates itself to providing safe, high-quality, cost-effective products and services with a strong user experience for customers worldwide. 费费 耗耗 时时 健健 品品 用用 代代 稳稳 医医 干湿棉柔巾干湿棉柔巾 棉柔巾棉柔巾、、湿巾等湿巾等(1) Medical consumables (2) Consumer goods In the 1990s, the international medical dressing market was To address the global industry challenge of cotton gauze shedding dominated by European and American companies in terms of lint and fluff, the Winner Medical team conducted thousands of technical standards and market share. Domestic Chinese products experiments and developed a patented pure cotton spunlace lacked competitiveness due to lagging production standards and non-woven fabric technology. Capitalizing on the natural, soft, inconsistent quality. Against this backdrop, driven by the vision of breathable, biodegradable, and eco-friendly properties of “ ” Bringing Chinese Medical Dressings to the World , Mr. Li Jianquan, cotton fiber, the Group launched the brand Purcotton in 2009, the founder of Winner Group, established the Winner Medical brand innovatively applying medical-grade production standards to in 1991. Over the 34 years of development, Winner Medical has built a daily pure cotton consumer goods. From its inception, Purcotton “ complete industrial chain encompassing raw material procurement has insisted on using high-quality cotton from around the world, ” – core material R&D – product manufacturing – terminal sales. maintaining strict quality control, and aiming to build a nationally ’ “ Through continuous R&D and upgrades, the Companys product trusted brand. Driven by the vision of Pure Cotton Changes the ” portfolio has been optimized and now includes traditional wound World , Purcotton continuously promotes the benefits of cotton care and bandaging, advanced wound dressings, operating room and has pioneered over ten new product categories, including consumables, infection prevention, and healthcare and personal cotton tissues, pure cotton top sheet sanitary napkins, and pure care products. Winner Medical has maintained stringent quality cotton top sheet diapers. Currently, Purcotton operates hundreds standards throughout its development, establishing an international- of brand stores in over 100 cities across China and has established level quality management system early on in the industry. Its products an omni-channel sales network across major e-commerce have received authoritative international certifications, including the platforms, social commerce platforms, and nationally renowned EU CE marking, US FDA clearance, and Japanese Ministry of Health, supermarket chains. Leveraging its core competitive edges of “ ” Labour and Welfare approval. With production capacity in China, Medical Heritage; Cotton-Centric Philosophy; Quality DNA, “ the United States, Vietnam, and the Dominican Republic, Winner Purcotton has cultivated a brand image of Comfort Commitment; ” Medical has established global credibility and supply capabilities as Health Assurance; Eco-Consciousness, earning the favor of a professional medical brand. In terms of distribution, Winner Medical a broad consumer base. In the future, Purcotton will remain “ “ pursues a three-pronged approach: overseas business + domestic committed to its brand initial aspiration of We focus on 100% ” professional medical market + daily consumer medical market. cotton and unlock its full potential to develop the high standard ” Through OEM, ODM, and its own brand, Winner Medical exports to with the best quality of cotton products , creating and leading ’ “ ” over 110 countries and regions. This brand s high quality has earned a Reassurance, Wellbeing, Sustainability pure cotton lifestyle. widespread recognition from hospitals and trust from consumers in the domestic market, resulting in higher brand awareness and a stronger reputation. Looking ahead, Winner Medical will accelerate R&D in biomedical and tissue engineering, adhering to the innovation philosophy of technology-driven development and product upgrades, prioritizing product leadership and advancements in basic materials. By integrating Chinese manufacturing with the global supply chain and expanding into global markets, Winner Medical continues to “ advance towards its strategic goal of becoming a one-stop solution ” for medical consumables . 2. Main products and applications The Company’s products in the medical segment include traditional wound care and bandaging, advanced wound dressings, operating room consumables, infection prevention, healthcare and personal care, and other products. The products in the consumer segment include dry and wet cotton tissues, feminine hygiene products, other non-woven products, baby and child apparel and products, adult apparel, and other woven products. The main product categories and illustrations of some products in the Company’s medical segment are shown below:Main Applications Main Applications Main Applications Applied in wound care to provide a moist Applied in wound exudate absorbing, wound Applied in prevention of surgical site wound healing environment, reduce dressing dressing, and sports protection infections change frequency, and minimize further trauma Speci c Products Speci c Products Speci c Products Medical cotton, gauze, bandage Surgical gloves, surgical packs, surgical Silicone dressings, alginate dressings, super gowns, etc. absorbent dressings, etc.Main Applications Main Applications Main Applications Applied in occupational protection for medical Applied in wound cleaning and disinfection, Applied in health management to meet personnel and patient isolation daily healthcare medical needsSpeci c Products Speci c Products Speci c Products Face masks, protective clothing, isolation Oral and nasal care, medical-aesthetic Injection and puncture products, test kits, gowns, gloves, shoe covers, caps, etc. personal care, nursing aids, etc. etc.The main product categories and illustrations of some products in the Company’s consumer segment are shown below:Speci c Products Speci c Products Speci c Products Cotton tissues, wet wipes, etc. Sanitary napkins, overnight pads, etc. Facial masks, cotton pads, diapers, disposable underwear, etc.Speci c Products Speci c Products Speci c Products（未完）  |