300888
2024
Stock code
ENVIRONMENTAL, SOCIALAND GOVERNANCE REPORT
Winner Medical Co., Ltd.
Deserts Retreat.Cotton Thrives,
About This ReportOverview
This is the third environmental, social and governance (ESG) report and also the fifth corporate social responsibility(CSR) report of Winner Medical Co., Ltd.. This report truly and objectively discloses the efforts of Winner Medicaland its subsidiaries to perform its corporate social responsibilities in 2024, and focuses mainly on the disclosure ofthe Company's ESG performance.
Reporting Scope
"Winner Medical Co., Ltd.", including its subsidiaries and joint ventures, is the reporting entity. The reportingscope is consistent with the Company's annual report unless otherwise stated. The time span for this report isfrom January 1, 2024 to December 31, 2024 (hereinafter referred to as the "Reporting Period"). Unless otherwisespecified, this report is prepared on an annual basis.Abbreviations
For better expression and readability, the entities involved in the report are referred to by their abbreviations.Winner Medical Co., Ltd. is referred to as “Winner Group”, “the Company”, or “we”. “Winner Medical” refers tothe Group's operations in the medical sector, which includes both serious medical care and consumer healthcarebusinesses. Shenzhen Purcotton Technology Co., Ltd. is referred to as “Purcotton”. Winner Medical (Huanggang)Co. Ltd. is referred to as “Huanggang Winner”. Jingmen Winner Medical Textile Co., Ltd. is referred to as “JingmenWinner”. Winner Medical (Jiayu) Co. Ltd. is referred to as “Jiayu Winner”. Winner Medical (Wuhan) Co. Ltd. isreferred to as “Wuhan Winner”. Winner Medical (Chongyang) Co. Ltd. is referred to as “Chongyang Winner”.Winner Medical (Tianmen) Co., Ltd. is referred to as “Tianmen Winner”. Winner Medical Co., Ltd. Shenzhen Branchis referred to as “Shenzhen Winner”. Winner (Guilin) Latex Products Co., Ltd.is referred to as “Guilin Latex”. WinnerPingan Medical (Hunan) Co., Ltd. is referred to as “Winner Pingan”. Global Resources International, Inc. is referredto as “GRI”.Basis of PreparationThis report is prepared in accordance with theSelf-Regulatory Guidelines No. 17 for Companies Listed onShenzhen Stock Exchange—Sustainability Report (For Trial Implementation),Self-Regulatory Guidelines No. 3 forCompanies Listed on Shenzhen Stock Exchange—Sustainability Reporting Preparationand related documents ofShenzhen Stock Exchange. It also refers to the following standards and guidelines:
GRI Sustainability ReportingStandards (GRI Standards), The United Nations Sustainable Development Goals (UN SDGs), IFRS S1 GeneralRequirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures.Data Sources and Reliability
The data and cases used in this report come from the official company documents, statistical reports and annualfinancial statements. The Company assures that the report is free of false records and misleading statements. It isliable for the authenticity, accuracy, and completeness of the content.Confirmation and ApprovalThis report has been approved by the Board of Directors on April 27, 2025 after being confirmed by themanagement.
Report AccessThe simplified Chinese version of this report is available for readers to reference. The electronic version of thisreport can be downloaded from our official website (www.winnermedical.cn).If you have any question about orcomment on this Report, please send an e-mail to investor@winnermedical.com or call 0755-2806685.
Contents
Message from Chairman
Improving Corporate Governance
Enhancing Environmental Management
Addressing Climate Change
Developing Green Products
Promoting Green Production
Building a Responsible Supply Chain
Spreading Warmth and Positive Energy
Empowering Employee Development
Securing Occupational Health and Safety
Promoting Green Philosophy
Fueling the Future with Innovation
Delivering Exceptional Quality
Enhancing Healthcare Accessibility
Ensuring Information Security
Upholding Business Ethics
Operating in Compliance with Lawsand Regulations
Sound Governance
Low-Carbon Development
Quality Products
Solid Foundation
Green Future
Shared ProsperityThriving CommunitiesHealthy Life
Outlook
Indicator Index
Responsibility PerformanceIndicators
About Us
2024 Awards
ESG Management
Spotlight:
The Power of Responsibility in
a Blooming Cotton Flower
0102
Li JianquanChairman and General Manager
0102
Winner Medical Co., Ltd. ESG Report 2024
Message from Chairman
Robustness – fueling development with reliable governanceWe have cultivated a top-down culture of respectfor the rule of law, for market forces, for the rule of law, for professionalismand for risks our investors. By continuously strengthening corporate governance and standardizing the governance structureincorporating the General Meeting Shareholders, Board of Directors, Board of Supervisors and the management, we are buildinga benchmark enterprise grounded in transparency, discipline, and trust. In line with our commitment to “delivering both qualityand value” through action, we have launched the mid-term dividend for the first time in 2024, with an annual dividend rate of 54%(proposed). Since our listing, we have distributed cash dividends of RMB 2.61 billion (including the proposed dividend amountfor 2024) and repurchased shares of RMB 690 million cumulatively, with cash dividends and share buybacks accounting for atotal of 93.0% of the initial proceeds, which highlights the Company's responsibility to investors. We also deepened our work incompliance, information disclosure, investor relations, shareholder returns, and ESG governance. These efforts have earned usbroad recognition, including being awarded "Best Practice Award for Board Office of Listed Companies" by China Associationfor Public Companies for three consecutive years and "Excellent ESG Case Study of Listed Companies" by China Association forPublic Companies for four consecutive years. As a signatory member of the United Nations Global Compact, we were awarded the“Best Practice Cases of Chinese Enterprises in the United Nations Global Compact” in 2021. In terms of high-quality informationdisclosure, we were rated as Class A on information disclosure by the Shenzhen Stock Exchange for three consecutive years.
Green – Driving environmental progress through innovationWe remain committed to sustainable development and continue to enhance the use of eco-friendly materials across our productportfolio, offering consumers a more comfortable and reassuring experience. We actively promote the research, development, andadoption of green products by managing carbon emissions throughout the entire product life cycle—from material sourcing andmanufacturing to packaging, transport, use, and recycling. By conducting product carbon footprint certifications, we ensure ourproducts are not only reliable in quality but also low-carbon and environmentally responsible, helping inspire healthier and moresustainable lifestyles. We’ve also launched a variety of environmental initiatives, including public awareness lectures, packagingdesign competitions, themed cotton color painting contests, charity walks, donations, and clothing recycling programs. Throughthese efforts, we express our love for the planet and advocate for sustainable philosophy and lifestyle.
Resilience – Expanding global reach through robust planningWe actively tap into global resources to strengthen the resilience of our domestic and international supply chains, continuouslyinnovating with high-quality cotton products and expanding our product and business footprint. We participated in the 2nd ChinaInternational Supply Chain Expo, contributing insights to support China’s supply chain development while further deepeninginternational collaboration. We acquired U.S.-based medical consumables company GRI to meet global supply demands, expandinto international markets, and accelerate Winner Medical’s global journey toward becoming a leader in the global healthcareindustry. Through our proprietary Cotton Tech, we’ve continued to push cotton innovation forward. One highlight is our upgradedCotton Lining Mask, reflecting that we focus on 100% cotton and unlock its full potential to develop the high standard withthe best quality of cotton products. Our hope is that more consumers will enjoy Purcotton products that embody our comfortcommitment and health assurance in their everyday lives.
Goodwill – Embracing Social Responsibility Through Public Welfare
We actively fulfill our corporate social responsibilities by responding to emergencies, supporting vulnerable groups, and helpingpeople in need through concrete actions. In June 2024, following severe flooding in Meizhou, we answered the government’s calland joined hands with businesses and organizations across Guangdong to pool resources and support disaster relief efforts—demonstrating unity and solidarity during times of crisis. To address the physical and mental health needs of middle and primaryschool girls in underprivileged regions, we partnered with the China Women’s Development Foundation to launch the “NicePrincess– A Better Period for Her” initiative. We donated menstrual care kits to 12,000 girls, organized menstrual health education classes,and released the short public-interest film “Letters from the Mountain Town” to shine a light on the challenges faced by girls inremote areas—amplifying the power of a single cotton bloom for social good.As momentum builds, 2025 is set to lift us to new heights, bringing both opportunities and challenges. Winner Group will stayfirmly anchored to its strategic blueprint—“Centennial Visionary Winner, Brand Advancement”. We will continue to advance ourvision - Product leadership, Operational excellence, Global vision,1 remaining steadfast in high-quality growth. With the wind at ourback and a firm eye on the future, we are committed to delivering greater value for our users, contributing more to society, andfulfilling our mission to drive the sustainable development of healthcare around the globe.
2024 marked a pivotal year for Winner Group—one in which we demonstrated resilience amid market headwinds and advancedwith strategic momentum. In the face of an increasingly complex and dynamic external environment, our three guiding principlesremained deeply rooted in everything we do: Quality over the profit, Brand over the speed, Social value over the corporate value.These principles have not only defined our culture but also sustained Winner Group through multiple economic cycles over thepast 34 years, keeping us aligned with the pulse of the times.“Brand Advancement” is the unwavering compass of our CentennialVisionary Winner journey and the central thread of Winner Group’s strategic plan. By adhering to a brand-centric developmentphilosophy and deploying initiatives on multiple fronts, we drive Brand Advancement and lay a solid foundation for the goal ofCentennial Visionary Winner.
0304
Apparel products, operating room infectioncontrol, full protection, non-gauze protection,gloves, medical devices
Pure cotton soft towel, cotton wet wipe,sanitary napkin, disposable travel essentials,beauty products, pidemic protection, careproductInfant and toddler products, babybedding, maternity apparel, maternityessentials, cotton diapersIntimate apparel, loungewear,underwear, adult outerwear, infantclothing (ages 0-2), toddler clothing(ages 2-6), children's clothing (ages6-12)Bedding, bath products
Professional medical care managementsolutions, home daily care managementsolutionsMedical masks, daily masks, children’smasks, industrial masksModerate to light incontinence products,care companions, lightskincare brandOral and nasal care, cleaning and disinfection, woundcare, medical aesthetics and personal care, healthcare
Periwound skin protection, acutewound closure, chronic wound exudatemanagement, active exudate management,wound healing aftercare
InfectionControl
PersonalCare
Maternity andBaby Care
Apparel andClothingHome Living
AdvancedDressingsTraditionalDressingsRespiratoryHealth
Family Care
Adult Care
W
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M
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dica
l
P
u
r
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Caring health, cherishing life, and protect-ing the environment for a better world
Product LeadershipOperational ExcellenceGlobal Vision
Focusing on both endogenous growth and externalexpansion, we continue to develop one-stop solutions
for medical consumables.We commit to innovation in basic materials, andfollow the “246+6” Innovation Framework.We prioritize best-selling products, ensuring aleading market share for strategic categorieswhile driving growth in segmented categories.
A global vision beyond borders paves the way forour international stride.Our internationalization is not merely aboutexporting products, but aiming to be a reputableinternational brand worthy of its name.We continue to elevate our brand and interpretthe brand philosophy and value.From streamlined foundational managementprocesses, to digitized workflows, to intelligentmanagement systems, we are optimizing basicoperation management across all channels.
Upholding the vision that "Purcotton Changes the World", wefocus on 100% cotton and unlock its full potential to develop
the high standard with the best quality of cotton products.
Core Business Principles
Quality over the profit, Brand over the speed, Social value over the corporate value.
Brand EthicsIntegrity in Operation; Respect for Consumers; Fair Competition; Social Responsibility;
Intellectual Property Rights; Continuous Improvement.
1)2)
1)2)
1)2)
About Us
We commit to innovation in basic materials,and follow the “246+6” Innovation Framework.We increase spending on R&D andequipment, strengthen user insights, enhanceproduct innovation capability, and builddifferentiated competitive edges.We prioritize best-selling products, ensuring aleading market share for strategic categorieswhile driving growth in segmented categories.We are committed to shifting value back andachieving sustainable growth.
Products are the core of brand image andpromotion. We continue to interpret the brandphilosophy and value, and strengthen its unity,consistency and sustainable management.Basic operation management across allchannels is one of our top priorities. We makeevery effort to stay close to the user endand expand our business landscape, raisingefficiency by means of business growth.We embrace open collaboration and mutualbenefits. To this end, we deepen strategicpartnerships with distributors, franchisees,suppliers, etc., while improving ourmanagement systems and standards.A global vision beyond borders paves the way for our international stride.Our internationalization is not merely about exporting products, but aboutglobalizing the Winner Medical brand, becoming a reputable internationalbrand worthy of its name.To achieve globalization, we must first establish a global supply chain system,a production and processing network and a sales and delivery infrastructure.
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Company Profile
Winner Group, founded in 1991, was listed on the Shenzhen Stock Exchange in September 2020 (300888.SZ). Today, the Companyoperates as a holistic health enterprise, synergistically converging medical innovation and consumer wellness ecosystems.Guided by the vision of "Caring health, cherishing life, and protecting the environment for a better world".The Group operatestwo major brands, “Winner Medical” and “Purcotton”, with product offerings spanning wound care, infection prevention, surgicalconsumables, personal care, home care, maternal and infant care, home textiles, and apparel.Over the past three decades, Winner Medical has built a whole industry chain covering raw material procurement, core materialR&D, product manufacturing, and end-point sales. Its portfolio includes traditional wound care and bandages, advanced wounddressings, surgical consumables, infection prevention products, and health & personal care items. With production facilities acrossChina, the United States, Vietnam, and the Dominican Republic,etc., we serve global markets through OEM, ODM, and proprietarybrands, reaching customers in over 110 countries and regions.In 2009, the Group pioneered the use of medical-grade standards in the manufacturing of consumer goods made from purecotton and launched the Purcotton brand. We introduced over a dozen new product categories such as cotton soft towels, purecotton top-sheet sanitary napkins, and cotton top-sheet baby diapers. Today, Purcotton operates hundreds of branded stores inmore than 100 cities across China, supported by an omnichannel sales network that spans major e-commerce platforms, socialcommerce, and leading national supermarket chains.
Strategic Vision
Product Matrix
ProductLeadership
OperationalExcellenceGlobalVision
Winner Medical Co., Ltd. ESG Report 2024
Winner Group
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Winner Medical was rated asClass A on information disclosureassessment by the Shenzhen StockExchangefor three consecutiveyears after going public.Winner Medical was certified undertheAdvanced Certified Enterprise(AEO) standardsby ShenzhenCustoms.Winner Medical (Tianmen) andWinner Medical (Wuhan)bothreceived the highest AAAcertification for its integration ofinformization and industrialization.Purcotton received the“2024 Low-Carbon Case Award” by ChinaNews Service · China Newsweek.Purcotton was awarded the“GlobalNo. 1 in the Cotton Tissue / FacialTowel Industry” by Euromonitor
International.Purcotton's baby cotton soft towel
also won the“EnvironmentalProtection Star” award at CBME.
Winner Medical (Tianmen) won thetitle of“National Green Plant”.Winner Medical (Chongyang) earnedBronze medal from EcoVadis, aglobally recognized sustainability
ratings provider.Purcotton was named a“2024Leading Brand in Consumption” by
InSpur New Consumption.Purcotton's hanging baby cottonsoft towel won the“InnovationStar Hygiene and Care” award atthe Children, Baby and Maternity
Products Expo, China (CBME).
Three Purcotton products wererecognized among the“Top TenInnovative Textile Products of 2024”
by the Productivity PromotionDepartment of the China NationalTextile and Apparel Council.
2024 Awards
Winner Medical was recognized
in the “List of Health IndustryBrands in 2024” at the 16 CPEO,
wining the “CPEO” Gold Award.
Winner Medical won the“BestPractice Award for Board Office
of Listed Companies” by ChinaAssociation For Public Companies
for three consecutive years.
Winner Medical was recognizedwith the“2024 GoldenBee·Excellent Sustainability Report”
and“2024 GoldenBee ·Excellent
Sustainability Report by ListedCompany in the Greater Bay Area ”.
Winner Medical was rated as“2024 Outstanding Sustainability
Practice Case Study of ListedCompanies” by China AssociationFor Public Companies.Winner Medical won the“BestPractices for Investor RelationsManagement by Listed Companies”by China Association for PublicCompaniesfor two consecutiveyears.
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ESG Management
SDGs Response
While boosting its globalization progress, Winner Group has never lost sight of global sustainabledevelopment. We actively align our business and value chain with the UN SDGs, and fully integratethe sustainability philosophy into our corporate strategy and operation. Together with our customers,supply chain partners and other business players, we strive to make progress in global sustainability.
In November 2020, WinnerMedical became a signatorymember of the UnitedNations Global Compact.SDG 1 No Poverty
Adopt a contract farming model to address challenges such asstagnation in farmer income and inefficient industrial development.
SDG 10 Reduced InequalitiesCreate a diverse and equal work environment, provide equal employmentopportunities for all, and eliminate any discrimination based on ethnicity,race, nationality, religion, gender, age, disability, marital status or anyother factors; care for girls in remote mountainous areas.SDG 11 Sustainable Cities and CommunitiesEnsure compliance with emission standards for waste gases during theproduction process and reduce any form of unorganized emissions;strengthen waste management by minimizing environmental impactthrough legal disposal and recycling; engage in community volunteerservices to contribute to sustainable cities and communities.
SDG 12 Responsible Consumption And Production
Build green intelligent plants, promote green production, and enhancethe efficient use of resources and energy; increase the proportion ofrenewable energy in production and operation; improve internal energyefficiency; strictly adhere to national and regional emission standards toreduce waste emissions.SDG 13 Climate Action
Incorporate the “Carbon Strategy” into the Company’s overall strategy,and set carbon peaking and carbon neutrality goals; publish andimplement theCarbon Inventory Management Manualto effectivelymanage greenhouse gases and continuously track reductionperformance; restore desert ecosystems and regulate regionalmicroclimates.SDG 14 Life Below WaterDevelop green, biodegradable products to reduce water pollution,protect water environment, and provide habitats for aquatic life; supportocean plastic reduction initiatives.SDG 15 Life On LandComply with local environmental protection policies to prevent land-usechanges harmful to biodiversity; engage in environmental public welfareactivities such as waste cleaning, and advocate for the protection ofendangered species.SDG 16 Peace Justice and Strong InstitutionsUphold the principles of integrity and lawful operation, establish a soundlegal and compliance system in such areas as clean business practices,fair competition, labor protection, environmental protection, informationsecurity and intellectual property rights protection, and enhancecorporate governance to consolidate management.
SDG 17 Partnerships for The GoalsPartner with domestic and international associations to exchangeindustry achievements; engage with stakeholders throughcommunication and release annual ESG reports; form a community ofinterest with governments, financial institutions, social organizations,community residents and industry partners.
SDG 2 No Hunger
Support regional development by donating supplies and engaging inphilanthropic initiatives.SDG 3 Good Health and Well-beingDevelop healthcare and lifestyle products; donate health supplies tovulnerable groups, expand product coverage, and promote healtheducation to enhance medical accessibility; regularly monitor and assesssafety factors in production facilities.SDG 4 Quality EducationEnhance the talent development system to support employees incontinuously improving their overall capabilities and achieving personalgrowth; conduct health education classes for female students in primaryand secondary schools in underprivileged areas.SDG 5 Gender EqualityEnsure equal pay for equal work for male and female employees, andpromote gender equality; support woman employment programs toempower female workforce.SDG 6 Clean Water and SanitationImplement continuous water conservation management by optimizingwater use processes in production and improving recycling for higherwater resource efficiency.SDG 7 Affordable and Clean EnergyRespond to China’s 30·60 decarbonization goal by adopting photovoltaicpower generation to reduce non-renewable energy consumption;promoting energy-saving and technological transformation projects, andoptimizing and upgrading equipment to improve energy efficiency.SDG 8 Decent Work and Economic GrowthUphold open, fair and equal employment policies, provide equal jobopportunities for all employees, establish a science-based talentmanagement system, offer competitive compensation, and ensureoccupational health and safety.
SDG 9 Industry, Innovation and InfrastructureCommit to implementing the core strategy of “Product Leadership andOperational Excellence”, uphold basic material innovation, follow the“246+6” innovation principle, increase spending on R&D and equipment,and enhance product innovation capability.
No PovertyNo HungerGood Healthand Well-being
QualityEducationGenderEqualityClean Waterand Sanitation
Affordable andClean Energy
Decent Work andEconomic Growth
Industry,Innovation andInfrastructure
Reduced Inequalities
Sustainable Citiesand Communities
ResponsibleConsumptionAnd Production
UN SDGs
ClimateAction
Partnershipsfor The Goals
Peace Justice andStrong Institutions
Life On Land
Life BelowWater
Winner Medical Co., Ltd. ESG Report 2024
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Key stakeholders
Topics of concernCommunication and response
Shareholdersand seniormanagement
Corporate governanceStakeholder communicationInvestor rights protectionAnti-commercial bribery and anti-corruption
Due diligence
·General Meeting of Shareholders
·Board of Directors
·Financial reports·Business reports·Roadshows and communication with
the Company
Customer/Consumer
Product and service safety and quality
Responsible marketingProduct lifecycle managementMedical accessibilityData security and customer Privacy protection
·On-site communication·Market research·Customer satisfaction survey
Employees
Talent introduction and retentionEmployee rights and benefitsEmployee training and developmentOccupational health and safety
·Employee activities·Employee training·Corporate intranet·Employee handbook
Governmentand regulators
Corporate governanceAnti-commercial bribery and anti-corruption
Environmental compliance managementWaste disposal, Pollutant discharge, Circular economyEqual treatment of SMEs,Fair competition
Rural vitalization,Innovation
Technology ethics
·Regular communication and reporting
·Institutional research·Policy implementation·Information disclosure
Partners
Fair competitionSupply chain securityEqual treatment of SMEs Technology ethicsProduct and service safety and quality
·Industry conferences·Strategic cooperation·Exchange and visits
Communities,the public andmedia
Ecosystem and biodiversity conservation
Community contributionMedical accessibilityResponsible marketing
·Community-based volunteer activities
·Social welfare projects·Social undertaking supportive projects
By interpreting China’s 2024 macropolicies, regulatory requirements andindustry trends, we benchmarked againstGRI Standardsand industry standards andtook into account the Company’s realities,eventually forming the 2024 WinnerMedical Material Topic Database.Through communication with internal andexternal experts, and by giving thoughtto the focus of leading internationaland domestic ESG rating agencies andother key information users, we prioritizematerial topics in terms of impactmateriality and financial materiality.
·Pollutant discharge·Investor rights protection·Corporate governance
·Anti-commercial bribery and anti-corruption
·Employee rights and benefits
·Occupational health and safety
·Innovation
·Product and service safety and quality
·Product lifecycle management
·Talent introduction and retention
·Supply chain security
·Responsible marketing
·Data security and customer privacy
·Waste disposal
·Energy utilization
·Environmental compliance management
·Due diligence
·Circular economy
·Ethics of science and technology·Climate response
·Equal treatment of SMEs
·Employee training and development
·Social contributions
·Healthcare accessibility
·Fair competition
·Stakeholder engagement
·Water resources management
·Rural revitalization·Ecosystem and biodiversity protection
We continuously communicate withstakeholders and internal and externalexperts in our daily operations to assessthe significance of the Company’s impactsand implement targeted managementmeasures for material topics.
Based on the results of the doublemateriality assessment, we conducttargeted disclosure and practicesimprovement.
Double materialityissuesImpact materialityissuesFinancialmateriality issues
IdentificationEvaluation
Prioritization Response
Topicidentification
process
Financial materiality
Impact materiality
Stakeholder Communication
Valuing the corporate social responsibility work, the Company fully considers the demands of stakeholders, and makes responsesthrough channels and means such as websites, meetings, reports, events and media based on regular communication.
Material Topics IdentificationThe Company follows the materiality analysis process where we first conduct survey through various channel and then perform adouble materiality assessment of 29 material topics in terms of impact materiality and financial materiality, and eventually identifyand select highly material topics for key disclosure.
Winner Medical Co., Ltd. ESG Report 2024
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△refers to impact material topic □refers to financially material topic
△refers to impact material topic □refers to financially material topic
DimensionESG topic
Description of risks and opportunitiesWinner Group’s actions
Environm-ental
Productlifecyclemanagement△□
Failure to prioritize green production and productlifecycle management may lead to decline in marketdemand, damage to corporate reputation andincreased production costs.By launching eco-friendly and sustainable greenproducts, the Company can attract environmentallyconscious consumers, create new marketopportunities, and enhance their CSR images.
The sustainability principles are integrated into every stage, includingmaterial use, manufacturing, packaging and transportation, use andrecycling, to manage carbon emissions throughout product lifecycle.We conduct product carbon footprint certification, achieve full-process carbon reduction, and continuously provide environmentallyfriendly products to the society.
For more details, see “Developing Green Products” section.Pollutantdischarge△
Violations of emissions management laws may leadto regulatory risks, fines, operational disruptions, anddamage to the Company’s reputation and image.Improving pollutant and waste management helpsreduce environmental impact, ensure compliancewith relevant laws, and strengthen our reputation.
We prioritize pollutant discharge management by establishing a
“Three Wastes” management system and continuously implement
pollution prevention measures to minimize emissions.
All subsidiaries and branches have obtained pollutant discharge
permits and registration forms, ensuring pollutants are emitted
and monitored in accordance with relevant requirements. Pollutant
discharge permit reports are submitted as required.
For more details, see “Environmental impact mitigation” section.
Social
Product andservice safetyand quality△□
Failing to meet established safety standards mayresult in product recalls, fines or lawsuits. If safetyor quality issues arise with products and services,consumer trust will be severely damaged.By following high standards of product safety andquality, the Company can build strong brand imagesand market reputations, attract more loyal consumersand partners, and enhance consumer trust. High-quality products and services help strengthen marketreputation, increase brand loyalty, and boost marketshare.
The Company strictly controls product quality and has established
a comprehensive quality management system to ensure effective
quality control throughout all stages, from R&D, manufacturing to
market launch.
The Company has upgraded its customer complaint management
system, and established a special risk and public opinion handling
process. For potential risks, feedback is promptly escalated and
returned, ensuring a closed-loop tracking of complaint resolution.
Catering to customer needs, the Company has overcome challenges
in the customer experience, optimized communication skills, and
provided premium service and care to comprehensively enhance
customer service experience, and continuously improve their
satisfaction.
For more details, see the “Product quality and safety” and “Better
customer service” sections.Innovation
△□
Technological innovation and intellectual propertyrights protection may bring higher financial andhuman resource costs.Long-term technological innovation will enhance ourcompetitiveness and leadership within the industry.
The Company is committed to basic material innovation, and follows
the “246+6” innovation principle. We have increased spending on
R&D and equipment, enhanced product innovation capability, and
continue to build differentiated competitive advantages.
For more details, see “Fueling the Future with Innovation” section.Employeerights andbenefits△
If we fail to provide satisfactory employee benefitsand welfare, employees may be disappointed or evenresign.Providing comprehensive benefits, health insuranceand career development support can enhanceemployee job satisfaction and loyalty, attracting moretalents.
The Company strictly complies with national laws and regulations
to protect employee rights, and has established a comprehensive
benefits system, and consistently improves employee satisfaction.
For more details, see “Empowering Employee Development” section.
Occupationalhealth andsafety
△
Failing to comply with occupational health and safetylaws may result in work-related injuries, health issuesand legal risks, including lawsuits and fines. It mayalso trigger negative public opinions.By strengthening occupational health and safetymanagement, providing health protection plans, andensuring a safe work environment, the Company canimprove employee job satisfaction and productivity.
The Company has built a comprehensive safety management
system, and established a safety responsibility system and internal
management policies that cover all employees, thus ensuring
comprehensive occupational health protection for all staff.
We pay attention to employees’ physical and mental well-being,
and are making every effort to create a safe and healthy work
environment.
For more details, see “Securing Occupational Health and Safety”
section.
DimensionESG topic
Description of risks and opportunitiesWinner Group’s actions
Social
Talentintroductionand retention
△□
Talent shortages may reduce our corecompetitiveness, delay project progress, reduceoperational efficiency, increase costs, and impactlong-term development.By optimizing the recruitment process, offeringattractive compensation and benefits, and providingcareer development opportunities, we can attractand retain high-performing talents, and enhanceinnovation capability and market competitiveness.
The Company has established a competitive compensation systemand implements the performance-based bonus-sharing mechanismto stimulate employees’ enthusiasm and creativity.We implement an equity incentive plan to attract, motivate and retainoutstanding managers and key personnel.For more details, see “Empowering Employee Development” section.
Supply chainsecurity
□
ESG risks in the supply chain (such as environmentalviolations, corruption, human rights issues, etc.)may lead to instability in the supply of products andservices, thereby affecting our normal businessoperations.Building a sustainable supply chain helps enhancethe stability of product and service supply andpromotes the healthy development of supply chainbusinesses.
Continuously optimizing and upgrading supplier management,strengthening cooperation and collaboration with suppliers, andensuring the safe and stable operation of the supply chain.Strengthening ESG risk management and conducting environmentaland social impact assessments on suppliers.For more details, see the "Building a Responsible Supply Chain"section.
Data securityand customer
privacyprotection
□
Data and customer privacy breaches may violaterelevant laws and regulations, leading to compliancerisks, financial losses such as fines, and negativelyimpacting customer personal rights, eventuallyreducing customer trust.Complying with relevant laws to protect customerrights helps maintain mutual trust.
The Company has established a three-tier information securitymanagement system and the Information Security ManagementCommittee, as well as an Information Security Project ManagementOffice under it to ensure data and information security in businessactivities.For more details, see “Ensuring Information Security” section.Responsible
marketing
□
Misleading, false or irresponsible marketing practicesmay lead to consumer complaints, legal actions or acrisis of market trust.A positive brand image and ethical marketingcan enhance customer trust, strengthen marketcompetitiveness, and expand the customer base.
The Company has formulated such internal policies as the ContentReview Policy and the Purcotton Advertising and PromotionalGuidelines Manual, which strictly prohibit the release of exaggerated,deceptive or false marketing contents.For more details, see “Responsible marketing” section.
Governan-ce
Corporategovernance△
An inadequate corporate governance structure, withconcentrated power and disorganized management,may lead to decision-making errors, weak internalcontrols and other issues, ultimately jeapordizing thelong-term development of the Company.Improving corporate governance structure andenhancing transparency and compliance can helpstrengthen trust from shareholders, employees andcustomers and optimize decision-making efficiency.
The Company continuously consolidates corporate governance,standardizes the governance structure incorporating the GeneralMeeting Shareholders, Board of Directors, Board of Supervisorsand the management. We give full play to the roles of the GeneralMeeting Shareholders as the highest authority, the Board of Directorsfor major decisions, the management for execution, the Board ofSupervisors for supervision, and specialized committees to provideprofessional guidance on major Board decisions. At large, we havecreated an open, transparent and effective atmosphere for thegovernance structure.For more details, see “Improving Corporate Governance” section.
Investor Rights
Protection△
Failure to protect investor rights may lead toshareholder dissatisfaction and stock price volatility,potentially affecting the company's ability to attractinvestment and its reputation.Active investor relations can increase the company'stransparency, enhance investor trust, stabilize stockprices, and promote profit growth.
The Company values investor relations management, establishescomprehensive channels for investor communication, and protectsshareholder rights.The Company implements cash dividends and share repurchases toenhance investor returns.
For more details, see “IR Management” section.
Anti-commercial
briberyand anti-corruption
△
Violating business ethics and compliancerequirements may lead to legal issues, sanctions,financial losses, damage to reputation or the loss ofcustomers and investors.Maintaining high levels of business ethics andcompliance can increase customer and investor trust,enhance reputation, and reduce legal and financialrisks.
The Company strictly adheres to business ethics standards. We areaccelerating the revision and improvement of internal systems andrequirements, and continuously build a more robust anti-commercialbribery and anti-corruption system.For more details, see “Upholding Business Ethics” section.
Impact, Risk and Opportunity Management
For identified impact material and financially material topics, the Company conducts ESG risk and opportunity analysis andformulates corresponding action plans and management approaches.
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Spotlight
Case
In September 2024, during the golden days of autumn,Purcotton celebrated its 15th anniversary in the very placewhere it all began—the cotton fields of Xinjiang. With thetheme “Where Cotton Blooms,” we hosted a grand cottonfield showcase to trace the brand’s journey and spotlightour latest achievements in cotton innovation. Through thiscelebration, we brought “Purcotton Changes the World”to life—transforming it from a slogan into a growing globalmovement. We hope more places on Earth will become“where cotton blooms.”
Where cotton blooms
Advancing cotton quality
Scaling up cotton farming
Impact of contract farming
Key performanceindicators
?Guo Jingjing“Standing here among vast fields of cotton, I truly felt thepower of turning desert into green. When I touched thesoft cotton with my own hands, then wore clothes madefrom it, I felt a deep sense of comfort and peace of mind.”
A sustainable fiberAn eco-friendly fiberA drought-tolerant cropA salt-alkali resistantcropA positive, nature-powered fiber
A natural fiber
A safe, chemical-free fiber
Superior breathability, comfort,
and warmth
A fiber with centuries of heritage
A crop that holds deep social
value
Transforming theEcosystem
Improving Lives
Since 2016
Growth of organiccotton usage
Profit increase acrossthe value chain
Percentage ofannual organiccotton usage inChina's total outputAnnual usage
approx.
%
millionRMBfold
tons3,00010
Supporting ecological restoration:
We promotedcrop rotation with rapeseed and wheat to restoresoil fertility and reduce monoculture challenges,enhancing long-term land productivity. Salt- anddrought-resistant cotton varieties were introducedin degraded or marginal lands such as saline-alkaliand desertified areas, helping revitalize fragileecosystems. Additionally, we promoted greenpractices like biological pest control and plasticmulch recycling to reduce cotton-source pollutionand build low-carbon cotton regions.
Activating idle land:
By consolidating unusedland and handing it over to professionalcooperatives or farming enterprises, weaddressed the issue of land left uncultivated.With strong government support—such assubsidies and land titling—we encouraged large-scale farming, boosted land-use efficiency, andturned dormant resources into fertile ground forincome generation.
Purcotton 15th Anniversary Celebration
The Power of Responsibility in a BloomingCotton Flower
Cotton with Purpose: How Purcotton Changes the World
“Purcotton changes the world” is the founding vision of Winner Medical's Chairman Li Jianquan. Since its inception, Purcotton hassteadfastly dedicated itself to perfecting every cotton fiber. We strive to educate more users on the benefits of cotton while usinga contract farming model to boost both quality and yield. Our mission is to share a natural, healthy, and eco-friendly lifestyle withconsumers.
At Winner Group, our story begins—and grows—with cotton at its heart. Fifteen years ago, we planted the seeds of a bold vision:
“Close to medical science with pure cotton care.” Since then, Purcotton has poured unwavering focus and passion into elevating asingle cotton flower to its highest potential. With relentless innovation, we’ve continually reimagined what cotton can be—revivingit again and again through cutting-edge breakthroughs. We believe in the power of one cotton flower to reshape the world.By choosing to focus on 100% cotton and unlock its full potential to develop the high standard with the best quality of cottonproducts, we are bringing more pure cotton offerings—embodying our Comfort Commitment; Health Assurance—into people’severyday lives, turning the vast Gobi into a blooming oasis.
Research-driven breeding innovation:
Purcotton partnered with the NationalKey Laboratory of Crop Genetic Improvement at Huazhong AgriculturalUniversity to establish the Cotton Research Institute. We appointed AcademicianZhang Xianlong from the Chinese Academy of Engineering as our ChiefCotton Scientist. Through gene editing and sea-land hybrid technologies,we’ve cultivated and expanded Purcotton No.1 and a high-lint cotton varietyspecifically for spunlace production. By starting with cotton seeds, we applyadvanced breeding technologies to unlock greater potential in cotton itself.Promoting organic cotton:
Starting from the very first step—cultivation—Purcotton strictly limits pesticide and fertilizer use, promoting organic cottonfarming across its supply chain. By expanding the use of organic cotton, we aimto reduce pollution of land and water, encourage harmony between humansand nature, and foster a healthy, sustainable ecological cycle.
Through a contract farming model that links companies, cooperatives, and farmers, we’ve built a system for precise alignmentbetween production and market demand. This approach has expanded planting areas, boosted yields, and addressed key ruralchallenges—idle land, low farmer income, and inefficient agriculture. It has also injected fresh momentum into rural vitalization andmodern agriculture. In 2024, Purcotton Agricultural Technology (Wuhan) Co., Ltd. led the Hubei Cotton Contract Farming Project,marking the province’s first large-scale, mechanized cotton harvesting over 100 mu (approx. 16 acres). This milestone has trulylaunched Hubei’s era of mechanized cotton production.
Expanding cotton acreage:
Under the HubeiCotton Contract Farming Project, we partneredwith 26 farming households. Of these, 12 signedformal production agreements covering a totalplanting area of 5,658 mu (approx. 930 acres).
Securing farmers' income:
By signing purchaseagreements with growers, we helped shield themfrom price volatility and ensured stable earnings.Annual high-quality cotton usage of about30,000 tons, covering 210,000 mu of cottonfields, to solve the cotton farmers employment ofmore than 10,000 people.
Key performanceindicators
The 10 Benefits of Cotton
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November 2024Deepening strategic partnership withCNCGC: building a green cotton supply chain
COTTON BREATHABLE
COTTON ANTI BACTERIAL
COTTON FILLER
COTTON COOL
COTTON ANTI UV
COTTON WARM
COTTON DRY
COTTON SOFT
COTTON PREMIUM
Purcotton makes history with Hubei’s first large-scale machine-harvested cotton
“China Cotton: One Cotton, One World”
Case
On November 6, 2024, Purcotton Agricultural Technology (Wuhan) Co., Ltd., in collaboration with the HuanggangAcademy of Agricultural Sciences, celebrated the harvest at its machine-harvested cotton base. By introducingthree-row self-propelled baling cotton pickers, we successfully completed large-scale mechanical harvestingin Huangjinhe Village, Huilongshan Town, Tuanfeng County—marking a first for Hubei. This milestone brokenew ground in the province’s cotton farming. Looking ahead to 2025, Purcotton plans to sign with 3 to 5 majorgrowers in Huanggang and expand the machine-harvested cotton area to 10,000 mu (approx. 1,650 acres). Thiswill further stabilize cotton cultivation across Hubei and fuel local agricultural modernization.
From November 26 to 30, 2024, at the 2nd China International Supply Chain Expo (CISCE), Winner Groupreturned to the global stage under the theme “China Cotton: One Cotton, One World.” As a global promoter ofhealth and medical products made from cotton, Winner Group showcased both its core brands—Winner Medicaland Purcotton—highlighting its deep commitment to green development, healthy living, and a sustainable future.Through this powerful platform, Winner proudly stood as a brand ambassador for China’s cotton.
Cotton Reimagined: Innovation Giving Cotton a Second Life
At Purcotton, we never stop exploring the limitless potential of a single cotton flower. Through continuous R&D, we’vepioneered Cotton Tech—our proprietary cotton innovation system. By selecting premium cotton with bright color, longfibers, and minimal impurities, we maximize cotton’s natural strengths—its softness, breathability, and warmth—infusingthese qualities into products that enhance consumers' everyday life.
Ventilation holes for enhanced breathability
①Gauze breathability technology
②Airy crinkle yarn breathability technology
③Naturally breathable cotton
Physical antibacterial protection for enhancedpeace of mind
①Pure100 proprietary antibacterial technology
②Probiotic antibacterial technology
③ Biowave antibacterial technology
Pure cotton inside and out, with high-efficiencyheat retention
①3D mesh technology for heat and cotton retention
②Washable pure cotton needle-punching
technology
Physical softening for increasedsoftness with every wash.
①Air bath softening technology
②Bio-enzyme wash softening technology
③Comfortable stretch and softening technology
④Seamless pure cotton softening technology
Breathable pure cotton* sun-protectiveclothing
①Long-lasting SPF sun protection technology
Lighter, softer and warmer
①Air-soft cotton warming technology
②Pure cotton moisture-absorbing heating
technology
③ Pure cotton far-infrared heating technology
Rare, premium cotton for a luxurious and skin-friendly feel
①Premium long-staple cotton
②Rare organic cotton
Instant cool touch, long-lasting chill*
①Aqua-cotton cooling technology
②PCM (Phase Change Material) cooling technology
③Menthol-based cooling technology
④Ice-spun yarn cooling technology
Instant sweat absorption for a fresh and non-sticky feel
①Pure cotton sweat-absorbing and fast-drying
technology
Cotton with Resolve: Growing Together Through Long-Term Partnership
At Winner Group, we live by the belief: “Choose good cotton and make good use of it.” We are committed to working hand inhand with partners across the value chain, including leading enterprises in the healthcare industry. Together, we build trust,share success, and drive scale through strategic cooperation—enhancing both the quality and social value of China’s cotton.
Winner Group and China National Cotton Group Corporationare strengthening cooperation across the cotton value chain—from cultivation and variety development to processing andtechnological innovation. Together, we aim to elevate thequality of China’s cotton industry while driving environmentalrestoration, contributing to green, sustainable growth.
Case
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Winner Group is committed to continuously enhancing its management capabilities.Through extensive learning and exploration in areas such as compliance governance,information disclosure, investor relations and returns, and business ethics, we havegradually established a comprehensive management system, which ensures oursustainable development and paves the way for a Centennial Visionary Winner.
Sound GovernanceSolid Foundation
Key ESG Topics Addressed in This Chapter:
Corporate governanceInvestor rights and interestsAnti-commercial bribery and anti-corruption
Fair competitionStakeholder communication
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Independent directors conduct research at thesubsidiaries in Wuhan and Huanggang
Independent directors attends the strategy
publicity session.
Relationship of three meetings in the Company
The General Meetingof Shareholders
The Company continuously strengthens its corporate governance foundation by standardizing the governance mechanism of theGeneral Meeting of Shareholders, the Board of Directors, the Board of Supervisors and the management("Three Meetings and theManagement") and giving full play to its role. We ensure that they can exercise their powers of the supreme authority, decision-making, execution and supervision, respectively, making specialized committees provide professional review for major decisions ofthe Board. In such way, we strive to create an "open, transparent, and effective" governance atmosphere for the three meetings.
The General Meeting of Shareholdersis the highest authority of the Company. TheCompany convenes and holds the General Meeting of Shareholders to ensure that allshareholders, especially small and medium shareholders, enjoy equal status and fully exercisetheir legitimate rights.The Board of Directors(the Board) is accountable to the General Meeting of Shareholdersand has four specialized committees that are accountable to the Board. The membership ofthese specialized committees is made up entirely of directors, responsible for formulatingworking procedures and standardizing operations to safeguard the scientific and effectivedecision-making of the Board.With respect to board diversity, we strive to promote a board that is diverse in terms ofgender, culture, professional skills and other aspects. All members of the Company's Boardof Directors have extensive industry experience as well as expertise in consumer, biomedical,business administration, accounting and other fields. As so far, our fourth Board of Directorsconsists of seven members, including three independent directors, three female directors,and one VP from each of our two major business segments among our internal directors.Our diversified membership reflects the balance of our Board in terms of gender, experience,background and expertise, which is conducive to enhancing the Board's comprehensivegovernance capabilities as well as its ability to gain insights, which in turn enables it to makesound risk-based decisions and improve its ability to respond to risks.With regard to the evaluation of the effectiveness of the Board of Directors, in order tocreate an “open, transparent and effective” atmosphere for the governance of the threeboards of directors, the Securities Department has established a mechanism for pre-meetingcommunication and pre-meeting pre-examination in respect of major matters. Arrangementsand invitations have been made for the sole director to participate in company activities andresearch, to provide the sole director with the facilities to fully understand the company in theperformance of his duties, with a view to utilizing the functions of a director and supervisor.
The Board of Supervisorssupervises the Company’s finances and the legality of the dutiesperformed by the Company’s directors and senior management to safeguard the rights andinterests of the Company and its shareholders.
Continuously standardize the rightsand obligations of the Companyand its shareholders to prevent theabuse of shareholder rights or themanagement's dominant position atthe expense of rights and interestsof small-and medium-sizedinvestors.
Arrange and invite independentdirectors to participate in corporateactivities and research, supportingthem to fully understand theCompany and effectively fulfill theirsupervision duties.
Establish pre-meetingcommunication and pre-reviewmechanisms for significant matters.
Corporate governance structure
Operations of Three Meetings
Improving Corporate GovernanceAs a council member of the China Association for Public Companies(CAPCO) and the Shenzhen Public Companies Association,Winner Group continuously betters its corporate governance structure, internal control systems and risk management to improveits decision-making capabilities. While ensuring our sustainable development, we maintain timely and genuine communicationwith our investors.
1015
Key performance
GeneralMeetings ofShareholdersheld
Boardmeetingsheld
Meetings ofthe Board ofSupervisorsheld
Meetings ofspecializedcommittees
Rated as 5A in the PerformanceEvaluation of Board Secretarybythe CAPCO for three consecutive
years
Rated as"Best Practice Awardfor Board Office of ListedCompanies”by the CAPCO forthree consecutive years
Transition of the Board and the Boardof Supervisors
In August 2024, the terms of the Board of Directorsand the Board of Supervisors of Winner Group expired.To make this transition more meaningful, the Companymeticulously prepared in advance, including customizedletters of appreciation and appointment certificates.A special free discussion session was arranged foroutgoing and incoming directors, supervisors, andsenior management to share governance experience,ensuring continuous improvement in the operations ofthe “Three Meetings”.
Case
The Transition Meeting of the Board and the Board of SupervisorsThe Board of DirectorsStrategy and SocialResponsibility Committee
Nomination CommitteeAudit Committee
Remuneration and
Assessment
The Board of Supervisors
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Centered around improving "sustainable sense of gain" of investors, we actively raise investor returns. In terms of cash dividendsand share repurchases, we have been increasing our dividend rate every year since listing, achieving rates of 20%, 30%, 48%, and50% in 2020, 2021, 2022, and 2023, respectively. In line with the "Improvement of Quality and Return" initiative, we have launchedthe mid-term dividend for the first time in 2024, with an annual dividend rate of 54% (proposed).
We actively participated in investor education. In addition to the annual results briefing which was broadcasted live on the Internet,we participated in the “2024 Online Collective Reception Day for Investors of Listed Companies in Shenzhen Jurisdiction” andthe “2024 Guoxin Securities Joint Investment Education Activity”, and exchanged views with the general public. In addition tothe presentation, the Company participated in the “2024 Online Collective Reception Day for Investors of Listed Companies inShenzhen Area” and “2024 Guosen Securities Joint Investment Education Activity”, and exchanged views with the majority ofinvestors in an effort to improve transparency. At the same time, we set up a special person to answer the investor hotline andrespond to the questions on the interactive platform of the Stock Exchange in a timely manner, so as to open its arms to the publicand listen to the opinions and suggestions of investors extensively.
135 announcements of various types and 8 voluntary information disclosures released Zero corrections or regulationsfor the announcements
2.52 million words in announcements accumulated, ranking ?rst among 13 companies in the personal care product
industry in Shenwan and ranking 171st out of 5,452 A-share listed companiesRated as Class A on information disclosure assessment by the Shenzhen Stock Exchange for three consecutive yearsRated as "2024 Outstanding Sustainability Practice Case Study of Listed Companies" by the CAPCO for fourconsecutive years
1,250+43,000+
The Company values investor relations(IR) management, firmly believing thata sound mechanism serves as the cornerstone of effective communication.Investor communication has been comprehensively deployed, covering modulessuch as regular report promotion - routine institutional communication -activities of small- and medium-sized investors - internal and external trackingand high-frequency analysis". Additionally, upon invitations from the ShenzhenStock Exchange(SZSE), local securities regulatory commission, and ShenzhenPublic Companies Association, we consistently conduct thematic experience-sharing sessions, establishing an efficient communication mechanism.
We strictly comply with the disclosure requirements under securities laws and regulations including China’sCompany Lawand theRegulations on Information Disclosure of Listed Companies. We also continuously revise and improve our internal systems suchas the Information Disclosure Management Systemand theAccountability System for Major Errors in Annual Report InformationDisclosure. Adopting an external perspective, we proactively address concerns raised by regulators, investors and media. Westrive to improve information disclosure quality in line with the requirements of efficiency and transparency, creating a compliant,professional, and responsible image in the capital market.
IR management
Information disclosure enhancement
Honor
HonorAwarded the "Best Practices for Investor
Relations Management by ListedCompanies"
by the CAPCO for twoconsecutive years
Rated as the " Best Practice in AnnualResults Briefing Best Practice Award forPerformance Briefings" by the CAPCO
for four consecutive years
The Company pays attention to opportunities for communication with investors. We reach a wider audience and engage inextensive and in-depth communication with all investors in various forms, including performance briefings, analyst meetings, on-site visits, institutional reverse roadshows, SZSE Easy Interaction platform, and hotline calls.We engage in persistent, sincere,proactive and in-depth communicationwith institutional investors, thus gainingrecognition from professional investorsfor our investment value, achieving fullcoverage of mainstream analysts in themarket, and having a far greater numberof research reports than our peers.
We facilitate active participation of small- and medium-sized investors in the General Meetings of Shareholdersand support all investor entities to engage in majordecision-making, thereby strengthening their voicesand sense of gain. Dedicated personnel are arrangedto promptly respond to the investor hotline and replyquestions on the SZSE Easy Interaction platform. Wewidely track investors' feedback and suggestions withopen communication channels.
Investor communication
Investor returns
Investor Protection
Institutionalinvestors
Small- andmedium-sizedinvestors
Case
In May 2024, Winner Group held its performancebriefing via live streaming at the highest standard,as usual. The Chairman, CFO, Board Secretary, andbusiness leaders attended the briefing and engagedin comprehensive financial interpretation and in-depth communications. They timely disclosed theCompany's performance highlights and futuredevelopment strategic plans to the public, whileactively promoting the Company's brand.
Winner Group proactively holds aperformance briefing
2023 Annual & Q1 2024 Performance Briefing
Key performance
Key performance
Large-scale publicbriefing sessions
Securities
strategy
meetings
participated
120+
Institutionalinvestorscommunicatingactivities attended
Institutionalinvestors incommunication
SecuritiesresearchreportspublishedViewers of annualperformancebriefing on the live-streaming platform
RMB million
Shares repurchased
%
93.0
Capital returned (% ofnet IPO proceeds)
Key performanceSince our listing,
billion RMB
2.61
Cumulative cash dividends *
*Note: Including the proposed 2024 dividend amount.
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RMB
Reporting channels
Tel: Landline 0755-28018166; Mobile 199251935688Email: jubao@winnermedicalWeChat official account: "Reporting channel" under the Group Risk Control CenterLetters: Winner Medical Supervision, 43/F, Headquarters Building, HBC Huilong Center,Intersection of Mintang Road and Yulong Road, Longhua District, ShenzhenVisiting for reporting
·····
Whistleblowers may make a reporting through the following channels:
8,828
Legal Seminar
In line with business ethics standards, the Company continuously builds a more sound anti-bribery and anti-corruption management system. For example, we accelerate the revisionand improvement of internal policies including theRed Lines of Winner Medical Group, theManagement Measures for Non-compliance and Discipline Violations, and theEmployee Businessand Ethical Conduct Code.From a supervisory perspective, a Group-wide fraud risk matrix is developed to identify riskexposures from two dimensions – fraud risk levels and fraud susceptibility. Targeted correctivemeasures are taken for high-risk positions and departments.We provide anti-bribery and anti-fraud training through multiple channels, including offlinesessions, online courses, WeChat official account publicity, and email training, to continuouslystrengthen our compliance and business ethics training and ethical culture.
The Company strictly complies with theAnti-Unfair Competition Lawand other relevantChinese laws and regulations. We have gradually integrated anti-unfair competitionrequirements into our internal work management policies and relevant rules and regulations.We sign theCompliance Statements on Standardizing Business Conductwith external supplierswho are prohibited from engaging in any activities that violate theAnti-Unfair Competition Law,thereby safeguarding market order and a fair competition environment.
We strengthen compliance managementfor administrators with special permissionsand establish compliance goals forbusiness systemsWe develop a complete brand contentstandard, covering social value, brandvalue, and content quality. We alsoestablish a comprehensive content reviewprocess, forming a pattern of an initialreview within the department + a finalreview from three parties (brand, legal,quality divisions)
We establish a supplier life-cyclemanagement system that covers theentire process of access, evaluation,and exit to ensure compliance
We standardize the connection andoperation of advertising businessinformation flow to ensure theaccuracy and effectiveness of the finaladvertisements
Anti-bribery and anti-corruption
Fair competition
Operating in Compliance with Lawsand Regulations
Upholding Business Ethics
DiversifiedcompliancemanagementBusinesscompliance
Contentcompliance
Supply chaincompliance
Advertisementcompliance
Winner Group insists on operating in compliance with laws and regulations by continuously strengthening its risk control andinternal governance. We continuously revise and improve risk management related systems and documents such as theRiskControl and Disposal Mechanism, theMechanism for Risk Accountability, and the Comprehensive Risk Management System,safeguarding our robust development.
Winner Group strictly abides by Chinese laws, regulations, and industry standards including theAnti-Monopoly Law, theAnti-Money Laundering Law, and theInterim Provisions on Prohibiting Commercial Bribery. We uphold professional ethics of integrity,self-discipline, honesty and trustworthiness, objectivity and fairness, and dedication, as well as the operation principles of voluntaryparticipation, fairness, equal value exchange, honesty and trustworthiness. These values of social responsibility and business ethicsare deeply embedded in our daily operations.
Case
In October 2024, Winner Group’s management andheadquarters employees participated in a legal seminar titled"What Business Operators Should Know About EnforcementProcedures", conducted by enforcement officers fromthe Longhua District People’s Court. Through detailedexplanations of legal provisions and real-case studies,participants gained an insight into enforcement procedures,including case filing, property investigation, enforcementmeasures, objection procedures, and legal consequencesfor non-compliance. This event further strengthened theCompany’s commitment to compliant operations.
"Judges Visiting Enterprises" Legal EducationEvent – Winner Group Special Session
Key performance
Key performance
Key performance
Training sessions oncontent compliance andpublic opinions held
Articles on lawimplementation, integritypublicity and casenotification released onthe Company’s WeChatofficial accounts
Lawsuit or significantadministrative penaltyresulting from unfaircompetition practices
Views in total
Compliance trainingsessions, including
Training sessions fordirectors, supervisors,and senior management
Fined in lawsuits or significantadministrative penalties arisingfrom violations of marketingcompliance regulations
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At Winner Group, we operate by core business principles: Quality over the profit,Brand over the speed, Social value over the corporate value. In both our medical andconsumer businesses, we continue to innovate in products and services, bringinghigh-quality products into households across the country and safeguarding people’shealth and wellbeing.
Quality Products
Healthy Life
Key ESG Topics Addressed in This Chapter:
Innovation-driven developmentProduct and service safety & qualityResponsible marketing
Medical accessibilityData security and customer privacy protection
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Winner Group's Innovationand R&D Center
R&D platformsWinner Medical
R&D Center
Types of R&D incentives
Winner Group's Innovation and R&D Center is composed of three specialized entities: Innovation Institute, Winner Medical R&DCenter, and Purcotton R&D Center. Each center has a clear focus: The Innovation Institute drives cutting-edge research in basicmaterials and emerging technologies, serving as a foundation for long-term technical reserves; the Winner Medical R&D Centerfocuses on medical product and material development; the Purcotton R&D Center is responsible for R&D related to daily-useconsumer goods and cotton-based materials.
Winner Group is firmly committed to its core strategy of “Product Leadership” We continue to push the boundaries of materialinnovation, guided by our proprietary “246+6” Innovation Framework. By increasing investment in R&D and advanced equipment,strengthening user insights, and enhancing product innovation capabilities, we are building a strong foundation for differentiatedcompetitive advantages.
Governance structure
Strategy and management framework
Fueling the Future with InnovationInnovation and R&D has always been a priority for Winner Group’s growth strategy. We’ve built a robust R&D system grounded inethical research practices, strong industry-academia-research collaboration, and a commitment to turning innovation into real-world impact. This approach enhances our core competitiveness and contributes to the sustainable development of the broaderhealthcare industry.
Innovation InstituteR&D of cutting-edge basicmaterials and emergingtechnologies
R&D of medical products& materials
R&D of daily-useconsumer goods &cotton-based materials
Guangdong ProvincialEngineering ResearchCenter for WoundRepair Materials
Innovation Awards atthe Group Innovation
ConferenceAnnual DepartmentalPerformance AwardsOutstanding Project Awardswithin Departments
Patent Awards (including baseawards and bonuses for massproduction of patents)
Joint Lab for AdvancedWound DressingInnovation
Lab accredited bythe China NationalAccreditation Service forConformity Assessment
Guangdong Functional CottonProducts Engineering Technology
Research Center
Health Sleep Products Industry
Technology Innovation CenterWound Care TrainingBaseR&D LabsClinical trial basesTechnology Innovation Center
Industry-academia-research hubs
Analytical & testingcenters
Winner Medical R&D CenterPurcotton R&D Center
Winner Group has built a comprehensive innovation and R&D ecosystem. By refining our innovation strategy, building dynamicR&D platforms, and encouraging a culture of creativity among employees, we continue to sharpen our in-house innovationcapabilities and enhance our core competitiveness.At the heart of our innovationmodel lies the “246+6” InnovationFramework, an approach rootedin market demand and scientificprinciples. We explore innovationfrom multiple dimensions and levels,identifying fresh opportunities andstrengthening our differentiatededge to drive sustainable growthand high-quality development.
Originating frommarket needs
Demand-pushedinnovation
Being usefulSolving pain pointsEnhanced customerexperienceBridging marketgapsCreating newopportunitiesAnticipating needs
Innovation for costreductionInnovation for socialresponsibilityInnovation for abetter lifeBased onfundamentalprinciples
Innovation in R&D system
Ethical standards in R&D
Two majorpathways
Four majormodels
Six keyinsights
·Innovation strategy
Winner Group actively collaborates with leading domestic and international research institutes, hospitals, and universities tobuild multiple scientific innovation platforms. These partnerships enhance collaborative innovation capabilities and improve theefficiency of transforming research into real-world applications.
R&D talent is the cornerstone of Winner Group’s innovation-driven development. To inspire innovation and recognize achievements,we’ve implemented a series of incentive mechanisms—including thePatent Management Policy for the Innovation Instituteand theIntellectual Property Management Policy. By combining financial rewards with recognition-based encouragement, we cultivate aninnovation culture that empowers employees to contribute to the Company’s technological breakthroughs.
We also strictly abide by theDeclaration of Helsinki and the Quality Control StandardforMedical Device Clinical Trials(GCP)promulgated by the National Medical Products Administration to protect the rights and interests of subjects. We are requiredto obtain approval from the ethics committee of the relevant medical institution when conducting clinical studies on therelevant product. The researcher must provide the subject with details of the clinical study, and any subject who is capable ofgiving informed consent must be fully informed of the purpose of the study, the methods, any possible conflict of interest, theresearcher’s affiliation, the expected benefits and potential risks of the study, any discomfort that may be caused by the study,post-study safeguards and any other study-related aspects, and sign an informed consent form for the patient.
·Innovation R&D platforms
·Innovation incentives
Winner Medical strictly adheres to theRegulations on the Administration of Laboratory Animalsand follows the 3Rs Principle forlab animals: Replacement, Reduction, and Refinement. We are committed to respecting and treating laboratory animals humanely.By reducing unnecessary suffering, we aim to increase the public acceptance of scientific research outcomes, while also fulfillingour responsibility to protect animals, maintain ecological balance, and contribute to sustainable social development.
·Animal ethics in experiments
·Clinical trial ethics
Purcotton R&D Center
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AprilMayJuneJuly
Septe—mber
Self-Softening
Pure Cotton
WipeHigh-Elasticity
Sunscreen
Peach BlossomFeminine Wet
Wipes
LightweightElastic Gauze
Innovationachievementsin daily-useconsumerproducts
Innovation achievements in medical dressings
Innovation achievements in daily-use consumer products
Certificate for Air-Soft Cotton
Baby Tie Romper
Certificate for Airy CrinkleYarn Pure Cotton Loungewear
Certificate for Pure Cotton AiryCrinkle Yarn Gauze Blanket
From innovation to real-world solutionsWinner Medical actively transforms scientific achievements into market-ready solutions. By continuously advancing technologyand innovation, we are delivering high-quality, health-focused, and eco-friendly products—bringing tangible benefits to society.
We have pioneered the self-softening purecotton wipe, which utilizes an innovativepre-treatment process combined withpure cotton spunlace nonwoven fabrictechnology. This approach effectivelyremoves impurities while preservingthe cotton fiber's natural waxy coating,resulting in inherent softness, controllablestrength, and water absorption properties.Laboratory tests have shown a 45%improvement in softness. The productcomplies with GB/T 40276 and GB15979 standards and has received theauthoritative BV Mark 0 certification andan invention patent authorization.
This fabric is crafted from premium long-staple cotton fibers, balancing breathabilityand lightweight properties. It employs aninnovative absorption method to blendUV absorbers with dyes, a technique thathas been granted an invention patent. Thefabric offers high-efficiency sun protection(UPF >100), exceptional wash durability(maintaining UPF 50+ after 100 washes),moisture-activated sun protection, and acool-to-the-touch sensation.
We selected cotton yarns with strongadhesion in both warp and weft, andcotton-wrapped spandex yarns withspecific elongation ratios. Throughstructural design and matching differentweaving techniques, after multipleexperiments, we achieved a lightweight,stretchable elastic gauze with cottoncontent ≥ 95%, weft-direction elasticelongation ≥ 40%, and seam split extent≤ 0.6 cm. This solution addresses theissue of non-elasticity in woven gauzeand improves the wearing comfort of thefabric.
Designed with a focus on women'sintimate health, these wipes simulate thenatural acidic environment of the intimatearea using lactic acid and are enriched withpeach leaf extract for gentle antibacterialaction. The innovative addition of cottonoligosaccharide prebiotics promotes thegrowth of beneficial bacteria, forming amicroecological barrier through a three-pronged mechanism. The product hasundergone multiple safety tests, includingirritation-free vaginal mucosa assessments,and leads to the trend of microecologicalcare with biotechnology, embodyingthe health philosophy of "Reassurance,Wellbeing, Sustainability".
CMC fiberproductionline achieveslarge-scalemanufacturingand sales
Hydrocolloiddressings entermass productionand sales
All core high-end dressingproductsreceive MDR CEcertification
Launched 6th-generation purecotton dry-feelspunlaced non-woven fabric andfor sale
Developed and released a newsafe, long-lasting antibacterialcotton spunlaced fabricCollagen-based bioactivedressings enter large-scaleproduction
Case
Case
Winner Medical has launched an upgraded Cotton LiningSurgical Mask, pioneering the use of pure cotton as themoisture-absorbing layer—a first in the industry. This maskoutperforms industry standards in synthetic blood penetration,filtration efficiency, and breathing resistance, while integrating20,000 micro-ventilation pores to deliver enhanced breathability,dryness, and skin-friendliness. Ideal for children, adults, andhealthcare professionals who wear masks for extended periods,the design ensures a softer and more comfortable wearingexperience.
Traditional lead-based protective apparel may cause harmfullead buildup in the body over time, posing serious health risks.In collaboration with Wuhan Textile University, Winner Medicaldeveloped a zero-lead radiation-resistant protective suit. Comparedto other domestic and international non-lead options, thisbreakthrough solution provides 20% better X-ray shielding, is 30%lighter in weight, and is three times softer. Moreover, it containsno detectable levels of lead, mercury, cadmium, or chromium,successfully achieving an ideal balance of radiation protection,quality comfort, non-toxicity and other key function indicators.
A breath of fresh innovation: “cotton lining”masks redefine protection
Zero-lead, non-toxic protective clothingsafeguards healthcare workers
Zero-lead, light and soft protectiveclothing against nuclear radiation
Upgrated Cotton Lining Surgical Mask
Honor
The project “Standardization and Application of Key Technologies for Emergency Epidemic Textile ProtectionProducts” received the Second Prize in the 2024 Science and Technology Advancement Awards from theChina General Chamber of Commerce, recognizing its contribution to innovation in public health protection.
Honor
Three Purcotton products—“Airy Crinkle Yarn Pure Cotton Loungewear,” “Air-Soft Cotton Baby Tie Romper,” and “PureCotton Airy Crinkle Yarn Gauze Blanket”—were named among the “Top Ten Innovative Textile Products of 2024” by
the China National Textile and Apparel Council (CNTAC).
“Breathable” PureCotton Fabric 3.0
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Standard NameTypeStatus
Dyed Cotton Multilayer FabricIndustry standardPublishedPure Cotton Knitted Thermal UnderwearGroup standardPublishedProduct Carbon Footprint – Product Category Rules – LintGroup standardPublishedEvaluation Method of Textile Washing and Drying Frequency Prompt FunctionGroup standardPublishedTechnical Textiles – ClassificationNational standardIn development
Scar DressingIndustry standardIn developmentMedical Cyanoacrylate AdhesivesGroup standardIn development
April 2024Strategic partnership with JD Health: openinga new chapter in healthcare innovation
April 2024Strategic partnership with Sinopharm Group:
jointly supporting public health advancement
This cross-sector collaboration brings together a manufacturingentity and a leading e-commerce platform. JD Health supportsWinner Medical in logistics, distribution, and e-commerceoperations, while leveraging its strengths in data analytics andprecision online marketing. The partnership will help WinnerMedical deepen market reach and refine its product strategy—advancing in digitalization, connectivity, intelligence, automation,green practices, and operational efficiency. Together, we areaccelerating the rise of new quality productive in China’shealthcare industry.
Winner Medical and Sinopharm Group have expandedcooperation across our full product portfolio—deepeningcollaboration in distribution, logistics, bidding, forecasting,and market access. The two sides complement each other’sstrengths, achieving mutual benefits through broader anddeeper integration. The partnership also focuses on infectioncontrol, with joint projects aimed at raising academic standardsin disease control and infectious disease research institutions.
Winner Group is committed to an innovation-driven development strategy. By strengthening collaborative mechanisms betweenindustry, academia, and research institutions, and actively participating in standard-setting processes, we are empowering thebroader industry and injecting fresh momentum into its high-quality development.Industry progress through innovation
Winner Group actively partners with leading universities and research institutions—including Huazhong Agricultural University,Soochow University, Huazhong University of Science and Technology, Wuhan Textile University, Southwest University, andHubei University—to accelerate breakthroughs in core technologies and improve the efficiency of turning research into practicaloutcomes.
·Industry-academia-research collaboration
The Company forms a strong partnership with leading enterprises in the health and wellness sector, built on mutual trust and win-win collaboration, driving the scale effects of strategic cooperation and working together to promote the long-term developmentof the industry.·Strategic cooperation
During the reporting period, Winner Group actively contributed to the development of seven industry and national standards, withfour already released and implemented.·Standard development
Case
Case
In partnership with the Dermatology Department of Union Hospital, Tongji Medical College, Huazhong University of Scienceand Technology, Purcotton conducted a clinical study involving 30 individuals with sensitive skin. The research evaluatedhow facial towels made from different materials affect facial skin conditions in patients with inflammatory skin disorders. Thestudy provides credible clinical data to support continued exploration into the skin-friendliness of cotton versus non-cottonmaterials.
To enhance product competitiveness from raw materials and deliver better experience to consumers, Purcotton joined forceswith Huazhong Agricultural University to breed new cotton varieties and develop cotton optimized for spunlace non-wovenfabric production. To date, the project has successfully developed five cotton strains and secured one authorized inventionpatent, making solid progress in cotton breeding innovation and industrial development.
Clinical research on cotton materials with Union Hospital
Case
Purcotton and Soochow University have launched a joint research initiative to develop health-focused sleep products basedon ergonomics. Together, they completed two key studies and published a white paper summarizing their findings. Thecollaboration also explores ergonomic pillow design for children and investigates how localized thermal comfort needs varyamong different user groups, aiming to support the future of China’s healthy sleep industry.
Developing ergonomic sleep products with Soochow University
Cotton breeding and spunlace-specific cotton R&D with Huazhong Agricultural University
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KPIsUnit2024R&D investmentmillion348Number of R&D personnel/1,199Percentage of R&D staff%7.8R&D staff by education
background
Bachelor's degree/324Master's degree/104Standard development
Industry standards led by the Company/1
Industry standards participated in/4
National standards participated in/3Accumulated number ofpatents within the country
Invention patents/183Utility model patents/932Design patents/442Total patents/1,557Accumulated number ofpatents overseas
Invention patents/35Utility model patents/7Design patents/1Total patents/43Accumulated number of patents obtained/1,600
Technologicalbreakthroughs
Greensustainability
Productdifferen—tiation
Poster for training sessions on patent validation analysis,
infringement assessment, and risk avoidance
Winner Group places strong emphasis on intellectual property rights (IPR) protection and strictly adheres to China’sPatent Lawand Copyright Law. To strengthen compliance, we have established a series of internal regulations, including theIntellectualProperty Management Systemand theManagement Measures for Intellectual Property Right Protection, ensuring the properhandling of patent applications and management. While proactively defending our own intellectual property, we also respect theintellectual property and creative contributions of others, ensuring lawful and appropriate use of external information, materials,products, and proprietary content. Our approach aims to foster a sound, innovation-friendly ecosystem.
Guided by the strategic goal of "Product Leadership, materials innovation, and building a pure cotton technology moat," we havedefined the key priorities of R&D management at Purcotton, focusing on three core areas of technological innovation, productdifferentiation, and green sustainability.
Promoting cotton breeding and gene editing to enhance raw material quality,cultivate high value-added cotton varieties, and advance the application ofcustomized spinning yarns.Driving continuous upgrades of Purcotton’s six core Cotton Tech technologiesand continuing developing new technologies and products.Developing differentiated cotton soft tissues and dry-wet toilet wipes tostrengthen the positioning of "cotton versus non-cotton differentiation."Creating premium cotton products to meet the demands of consumerupgrades.Advancing zero-plastic/reduced-plastic packaging initiatives.Implementing eco-friendly dyeing technologies, such as plant-based dyeing.Promoting carbon footprint certification for core products and carrying outenergy conservation and emission reduction measures.
IPR protection
Case
As brand recognition and product innovation continue to grow, Purcotton launched a dedicated training series on patentvalidation analysis, infringement assessment, and risk avoidance. The sessions were designed to empower productdevelopment teams and speed up innovation-to-market processes. This initiative has significantly strengthened employees’awareness of intellectual property rights and deepened their understanding of the latest legal policies and IP trends. Bybuilding legal literacy within our innovation teams, we’re providing stronger professional and regulatory support for our R&Defforts.
Purcotton’s IPR protection training
·R&D and innovation management targets
·Metrics
Metrics and targets
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We have established a comprehensive quality management system and a dedicated quality management department, whichoversees the entire product lifecycle—from R&D and production to market launch.
123456789
Training on product quality standardsTraining on management system certification
KPIsUnit2024Coverage of ISO 9001:2015 - Quality management systems certification%100Number of quality training sessions/5Training coverage for quality-related personnel%100
Product Recall Flowchart
Receive product issuereport and forward toQuality Department
Quality team receivesand assesses the issue
Conduct recall reviewDevelop recall plan
Issue recall noticeConfirm recalleffectiveness
Implement recall andconduct supervision andfollow-upRecall completed
Winner Group adopts a customer-centric approach to quality. We have established end-to-end procedures covering customerneeds identification, product design and development, change management, procurement controls, quality control, customercomplaint handling, adverse event monitoring, and product recalls, ensuring quality across the entire product lifecycle.Our quality control processes include well-developed protocols for incoming material inspection, in-process inspection, and finalproduct inspection. For critical steps and special processes, we assign dedicated personnel to validate each phase, carrying outstrict verification and confirmation to ensure effectiveness and reliability in all key operations.
·Quality management system
Winner Group is committed to building a strong quality culture through company-wide participation and continuous improvement.We offer targeted training programs focused on comprehensive quality management, compliance, certification planning, andstandards implementation. These initiatives help strengthen the quality system and enhance employee capabilities, effectivelydriving product quality improvements.
·Quality security and training
Winner Group strictly complies with product recall regulations in China, the United States, and other markets. We have establisheda structured recall management system with defined procedures and a three-level emergency response mechanism. When aproduct with a quality defect or potential public health safety risk is identified, we act immediately to correct, prevent, and informrelevant stakeholders. If necessary, we initiate a product recall to protect public health and safety to the greatest extent possible.In 2024, Winner Group initiated three product recalls, all of which were voluntary. No serious injuries or fatalities were reported dueto product defects.
·Product recall management
To continuously improve our business operation mechanism and enhance the level of quality control, we have set quality targetsand continuously monitor the achievement of these targets each year. During the reporting period, we achieved the goal of afabric quality pass rate of over 98% for bulk production.·Quality management targets
·Indicators
Quality Management
Key Quality Control Points
Design anddevelopment
Raw materialsourcing
QualityinspectionQualityinspection
Warehousingand shipping
Customerengagement
Customerservice
AnalysisPackagingManufacturing
Feedback and Improvement
We strictly comply with China’s Product Quality Lawand theConsumer Rights Protection Law, while continuously improving ourinternal quality and safety control systems. Our goal is to build a traceable, controllable, and reliable production assurance system,ensuring product quality from the source.Product quality and safety
Delivering Exceptional QualityWinner Medical upholds the principle of “Quality over the profit” and places product quality at the heart of everything we do. Wehave developed rigorous and comprehensive quality standards and processes to ensure full participation and full-process qualitycontrol, thereby continuously enhancing product quality.
1.1 Customer
requirement andregulatory reviews
1.2 Design verification
1.3 Design validation
1.4 Design reviews
1.5 Design transfer
2.1 Supplier access
evaluation
2.2 Regular supplier
performanceevaluations
2.3 Raw material
quality inspection
3.1 Quality validation
for critical and specialprocesses
3.2 Production
environmentverification
3.3 Employee training
and skills assessment
4.1 First-article
inspection, in-processinspections, and finalproduct inspections
4.2 Production
environmentmonitoring
4.3 Conformity check
6.1 Storage condition
control
6.2 Management of
product shelf life
6.3 Outbound quality
inspection
6.4 Monitoring of
transportation quality
8.1 Customer complaint
handling
8.2 Customer support
8.3 Adverse event
monitoring
8.4 Collection and
assessment of industryrisk signals for earlywarning
9.1 Market feedback
analysis for rootcauses
9.2 Improvement
measures formulatedand communicated torelevant departmentfor implementation
Governance structure
Strategy and management framework
Metrics and targets
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Pre-sales serviceIn-sales serviceAfter-Sales Service
Complaint handling process
%%
%
92.57168.5
202220232024
28%
45%
51%Winner Group upholds a customer-centric service philosophy. By continuously optimizing service processes, refining complainthandling procedures, and enhancing the professional capabilities of our customer service team, we are committed to improvingthe quality of customer service and the overall shopping experience—with the ultimate goal of increasing customer satisfaction.
An outstanding customer service teamis essential to strengthening corporatecompetitiveness. Winner Group continuesto elevate service quality by improving theprofessional knowledge and skills of our teamthrough practical simulations, specializedtraining, and performance-driven programs,delivering a better and more reassuringexperience to every customer.
Winner Group remains firmly committed to its customer-first philosophy. By closely tracking evolving customer needs, addressingservice pain points, refining service communication, and offering proactive care, we continue to optimize the customer experienceat every touchpoint and steadily improve customer satisfaction.
Before major holidays and shopping festivals, we reach out with personalized greetings andtargeted promotions based on customers’ past purchasing behavior and interaction history,deepening engagement and boosting satisfaction through thoughtful, timely service.
We standardized and optimized 21 sets of company-level customer service scripts, adding orrefining over 600 service phrases in 2024. This growing knowledge base ensures a consistent,professional experience across pre-sale, in-sale, and post-sale interactions.
By regularly analyzing data from negative reviews, complaints, and product returns, we systematicallyidentify pain points across operations, logistics, and product quality. Recurring issues are clearlycommunicated to the responsible departments, helping us act as a true voice of the customer.
Winner Group has established a clear and comprehensive set ofPre-Sales, In-Sales, and After-Sales Service Procedures. Wecontinue to refine service reception standards, clarify team responsibilities across each service phase, and streamline 10 keyservice activities such as inquiry handling, order processing, and returns/exchanges. This full-chain service system ensurestraceability from first contact to issue resolution, improving both consistency and service quality.
We have established a formalComplaintHandling Process, continuously upgradingcomplaint tracking and resolution rules. A specialescalation and feedback mechanism is in placefor special complaints involving risks of arisingpublic opinions, ensuring timely intervention anda complete resolution loop.While calming any negative emotions ofcustomers, our team swiftly records the keydetails of the complaint, creating a safe andopen space for the customer to express theirconcerns.
We actively listen to the customer's concerns andassess their needs from the perspective of theoverall customer experience. When a requestcannot be fulfilled, we communicate with sincerityand offer practical, alternative solutions.
Once the issue is closed, we follow up to ask ifthe customer has any additional needs—such asproduct knowledge, care instructions, or serviceupgrades—and provide personalized servicerecommendations based on their feedback.
Using professional diagnostic tools, we conduct across-departmental investigation—involving teams fromquality, warehousing, logistics, and more. We examineevery stage of the product journey, from productionand sales to delivery and usage, to accurately identifythe root cause and assign responsibility.
Based on the investigation results, we provide a clear andaccurate explanation of the issue, including the cause,resolution measures, and future prevention steps. If the issuecannot be resolved immediately, we escalate it promptlyand inform the customer of the estimated resolution time,ensuring follow-through until the issue is fully resolved.
Throughout communication, we sharepractical knowledge such as product caretips and usage guidance. During seasonalchanges or holidays, we send thoughtfullifestyle reminders to maintain warm, long-term relationships with our customers.
We’ve enhanced the flow from answeringinquiries to personalized productrecommendations. Incoming customersreceive tailored service based on theirneeds, while product highlights andplatform-related shopping informationare conveyed with clarity—creating apositive first impression.
Our staff are trained to fully understandboth products and service procedures.After a customer places an order, weprovide support throughout shipping anddelivery, addressing any issues promptly andefficiently to ensure full resolution.
We continue to optimize the handling oflogistics exceptions, refunds, and returns.By standardizing after-sales procedures, weresolve post-purchase issues more efficiently,improving the shopping experience anddriving higher customer satisfaction.
Better customer service
Customer service process
Customer service enhancement
Enhancing customer satisfaction
Customer complaint handling
Full-cycle customer service process
Key performance
Key performance
Customer complaintresponse rate:
Customer serviceteam members heldprofessional infant carecertifications by the endof the reporting period
48-hour complaintresolution rate:
Percentage ofcustomer servicestaff certified ininfant care
Scored on the “3.15Green Channel”customer satisfactionevaluationYear-on-yearimprovementof complaintresolution rate
Sincereapologyand warmreception
Clearunderstandingof customerexpectations
We’ve built practical case analysistools such as theMonthly QualityCase Libraryand theRetentionCase Library. Each month, casestudies are analyzed to extractconversation templates andprocess optimization strategies.Emergency response efficiency isstrengthened through simulationsand-table exercises (e.g., suddencomplaint scenarios).
Simulation drills and case-based empowerment
Courses like "Consumer RightsLaw + Compliance Case Analysis”and “Wet Wipe Quality Standards”ensure that customer servicerepresentatives can provideaccurate, regulation-alignedanswers, helping reduce customerconcerns and mitigate potentialrisks.
Training on regulationsand quality standards
We motivate the service teamwith recognition programs suchas Top Sales Awards, ServiceStar Highlights, and Part-timeInstructor Competitions. High-performing team leaders areinvited to rotate and take onsupervisory responsibilities,allowing them to expand theirscope, gain managementexperience, and build a solidpipeline of future team leaders.
Talent incentives anddevelopment mechanismsWe offer both internal andexternal training, host skillscompetitions, and providespecialized certifications. Frontlineproduct knowledge trainingis conducted in coordinationwith stores and warehouses,deepening the customer serviceteam’s understanding of theproducts and enabling moreprofessional service.
Professional skills and
knowledge training
Proactivefollow-up
service
We collect customer needs, provide feedback to the product department, and promote thedevelopment of categories such as spring and summer home wear with built-in breast pads, men'squick drying square underwear, and basic solid color socks, to meet a wide range of customer needsand elevate their day-to-day experience.Meetingcustomer needs
Refining servicecommunication
Addressing painpoints
Proactive careand engagement
Thoroughand in-depthinvestigation
Clear andaccurateresponse
Ongoingcustomer care
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Recognized as a “3.15Customer Reconciliation
Model Enterprise”
Our Tmall team awardedthe “Double 11 Gold Medal
After-Sales Award”
202220232024
85.5%
91.9%
92.1%
%%
170.14
ReviewerScope of reviewReference for review
ComplianceDepartment
Texts, images, videos, and any content
involving laws or regulations
TAdvertising Law, Trademark Law, Copyright Law, Patent Law, Anti-Unfair Competition Law, Consumer Rights Protection Law, Pricing
Law, Product Quality Law, and local regulationsQuality Department
Product quality, certifications, performanceclaims, indicators, or related quality
information
Technical standards and industry regulations
Brand Department
Content, wordings, creative concepts, and
overall presentation
Corporate culture, brand values, company vision, and public moralitySecuritiesDepartment
Financial, listing, and investment-related
disclosures
Financial statements, information disclosure guidelines, insider
trading prevention protocolsProduct Center
Product highlights, brand visuals, logo usage,visual adaptation, and brand elements
Product concept and highlights, technical documentation, and
Purcotton’s visual identity manual
Honors
Honors 2024
Key performance
Customer satisfaction
Case
To help customers better understand product features and make more informed purchasing decisions, Winner Groupintroduced visual product family maps that clearly display key attributes, related categories, and usage scenarios. In 2024, weoptimized 60 product family diagrams, standardizing labels for product names, specifications, materials, and performancefeatures. These diagrams now cover over 350 products, effectively linking related product lines and improving both decision-making efficiency and brand recognition.
Enhancing customer experience through product family mapping
Case
Customer service center has adopted an AI-driven smart tool matrix to automate core service scenarios—ranging fromfeedback management and sales support to quality inspection training, public sentiment monitoring, chatbot integration, anddata utilization. This has significantly improved both response efficiency and service quality oversight.During major sales campaigns, a recurring challenge was the surge in requests to change default shipping addresses. Toaddress this, we developed a smart system combining AI-generated service tickets and RPA automation, enabling automaticdetection and processing of address change requests.
Leveraging AI and RPA to boost customer service efficiency and quality
The Cotton Soft Tissue Family Mapwas upgraded to illustrate the uniqueuse scenarios of each product
Compliant trainingDuring thereportingperiod,
During the reportingperiod,
Increase of theproportion of AI-handled customerinteractions
Violations related to marketingcommunications reported
Responsible marketingtraining sessions
Total training hours onresponsible marketing
Decrease ofcustomer negativereview rateReceived “Silver Bee” and
“Bronze Bee”
Awards ontheDian Xiaomi(ShopAssistant) Double 11Honor Roll, presented byTaobao and Tmall Group
“Mastermind Award”
issued by AI Xiaozhi
Key performance
Key performance
Responsible marketing and the delivery of accurate product and service information are essential pillars of Winner Group’s long-term, sustainable growth. We embed our values and corporate social responsibility principles into daily marketing practices andbusiness development activities, ensuring that all promotional efforts reflect scientific, objective, and trustworthy communication.We strictly comply with theCivil Code, Consumer Rights Protection Law, Anti-Unfair Competition Law, Advertising Law, and otherrelevant domestic regulations, as well as applicable international standards and codes of conduct.
To ensure marketing integrity, Winner Group has developed a series ofinternal policies such as theContent Review Policyand thePurcottonAdvertising and Promotional Guidelines Manual. These policies strictlyprohibit exaggerated, misleading, or false advertising claims. To ensurethe accuracy, openness and timeliness of information, all externalcommunications must pass a formal review process before being published.Once released, no content may be altered without system-based re-approval, ensuring full compliance with relevant laws and internal policies.In addition, the Company organizes regular training sessions on responsiblemarketing to ensure employees clearly understand company standards.Training covers common violations in e-commerce advertising and internalprotocols for external communication, helping staff stay compliant and avoidmisleading or exaggerated claims. Through these efforts, we protect bothour brand reputation and the trust of our customers.
Departments including Compliance, Quality, Brand, and E-commerce work collaboratively to review all external promotionalmaterials and are responsible for the results within their responsibility scope.
Responsible marketing
Governance structure
Strategy and management framework
Metrics and targets
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Through strategic cooperation with Sinopharm Group, weare deepening our presence in key provincial and city-level markets, jointly advancing the development of publichealth service networks. We also support public hospitalsthrough comprehensive product replacement programs,and work with e-commerce platforms to offer one-stopsolutions that simplify the management of low- and mid-value medical consumables. In the private healthcaresector, we deliver premium, customized product solutionsdesigned to enhance the patient experience. At the retaillevel, we’ve partnered with on-demand channels suchas Meituan O2O, increasing around-the-clock pharmacyaccess and coverage through instant delivery services.
Expanding product reach
Upholding the vision of “caring health, cherishing life,and protecting the environment for a better world.”, wedevelop thoughtful solutions for people across all ages andlife stages. We design specialized products for children,addressing pain points in pediatric health management.At the same time, we donate elderly-friendly productsto senior care institutions across the country, helping toenhance both quality of life and emotional well-being forolder adults.
Meeting the needs of specificpopulations
By offering single-use surgical kits, standardized surgicalgowns, and other product mixes, we help medicalinstitutions streamline procurement and centralize costcontrol of consumables.
Reducing medical costs
Winner Medical launched the “5.5 Health Day” initiativeto deliver authoritative, science-based health contentthrough hospital-business collaboration. By integratingcontent with new media platforms, we ensure accuratehealth knowledge reaches a broader audience,strengthening public awareness of disease prevention.
Promoting healthcare education
Enhancing Healthcare Accessibility
Winner Medical is deeply committed to inclusive healthcare. We strive to enhance healthcare accessibility by expanding productreach, addressing diverse population needs, reducing medical costs, and promoting public health education.
Case
Winner Medical launched its family incontinence carebrand "Qingfuli", and during World Continence Week,co-hosted a themed salon with medical professionals toraise public awareness. Through knowledge-sharing andhands-on training, the event helped participants betterunderstand incontinence and how to manage it withdignity and care. In collaboration with cross-industrypartner Jinxiuer, Winner Medical also launched a hybridonline + offline interactive campaign, deepening publicengagement and understanding of incontinence throughaccessible and inclusive health education.
Promoting public awareness ofincontinence care through non-profitlectures
Case
Winner Medical unveiled its proprietary “May HealthFestival” initiative in partnership with leading institutionssuch as Southern Medical University and NanfangHospital, alongside various corporate collaborators. Thecampaign rolled out across China through both onlineand offline channels, delivering a wide range of publicwelfare activities aimed at enhancing public awarenessof health and hygiene and meeting the evolving needs ofpopulation-wide healthcare.
Launch of the “May Health Festival” IP:
championing health together
“May Health Festival” health education campaign
Incontinence Care Themed Salon
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Making decisions on significant issuesrelated to information security projectsCoordinating resources for informationsecurity projectsOverseeing the operation of theinformation security management systemImplementing information security projectsConducting progress management ofinformation security projectsSupervising the operation of informationsecurity projects
Setting information security goalsand outlining construction pathwaysAssigning tasks and trackingprogressCoordinating with departments andexternal suppliersOrganizing regular safetyevaluations and reports
Performing daily security operationsand maintenance, includingterminal security protectionConducting terminal securityprotection to prevent data leaksIdentifying, tracking, andinvestigating security incidentsManaging the security risks ofinformation assets
KPIsUnit2024
Employee coverage rate for data privacy and security training%100Number of information leakage incidents/0
Progress in 2024
Timely response to security incidents and vulnerabilities: 100%Achieved
Pass rate for security training and assessments: ≥95%AchievedMajor or critical information security incident during the year: ≤1AchievedResolution of all high-risk items included in risk mitigation plans: 100%Achieved
Organizational structure forinformation security management
Ensuring Information Security
Winner Group upholds the principle that there is no such thing as a small matter when it comes to information security. We arecommitted to strengthening our information security protection capabilities and building a secure digital foundation to support theCompany’s long-term digital transformation.
We have partnered with Tencent and Huawei to jointly build a security access architecture centered on our data centers, and adocument protection system integrated with instant messaging platforms.
The Company regularly conducts information security training for all employees and IT security management personnel, aiming tostrengthen protection from the human side of the cybersecurity chain by enhancing awareness.
Through our official website and social mediaplatforms, we publish a series of educational articles ondata security and privacy protection to raise awarenessamong both employees and customers.
We also invite external experts to deliver in-personworkshops on data security, helping employees betterunderstand its importance and comply with bestpractices for data handling.
We have developed a three-tier information security management structure, led by an Information Security ManagementCommittee with a Project Management Office under its oversight. Together, the system guarantees robust data and informationsecurity throughout all business operations.Governance structure
Strategy and management framework
Metrics and targets
Security safeguards
Security awareness and education
Information SecurityManagement CommitteeProject Management
Office
Group Headquarters
We have replaced traditional VPNs with zero-trust architecture, effectively eliminatingsecurity risks caused by high-risk vulnerabilities.Using stealth technology, zero-trust significantlyreduces the system’s exposure to externalthreats, greatly enhancing the security ofnetwork access and defense mechanisms.
Cyber-security
We have established a baseline forendpoint access control, integratingendpoint security with remote access.This unified approach makes endpointsecurity more comprehensive,intelligent, swift, and efficient.
Endpoint security
By implementing data loss preventionrules, screen watermarks, andenterprise messaging watermarks, wehave built a data traceability frameworkthat enables full control over externaldevices and file access auditing.
Data security
Subsidiaries and branchesExternal suppliers
Onlineeducation
OfflinetrainingAssisting in project implementationand deliveryConducting regular inspections andaddressing after-sales complaintsas neededDisclosing major informationsecurity hazards
Honor
Winner Group passed the Level-3 ClassifiedProtection Evaluation for two consecutive years,significantly enhancing the security and reliabilityof our information systems. This certificationhelps prevent malicious attacks, unauthorizedaccess, data leaks, and service disruptions, therebyensuring business continuity and system integrity.
·Safety Management Targets
·Metrics
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Winner Group remains committed to the business philosophy of environmentalprotection and sustainable development, striving to create eco-friendly products. Bystrengthening environmental management, optimizing resource utilization, promot-ing clean production, and implementing full lifecycle product management, weactively support China’s carbon peaking and neutrality strategy. Together withupstream and downstream industry partners, we drive the green transformation ofthe cotton industry.
Low-CarbonDevelopment
Green Future
Key ESG Topics Addressed in This Chapter:
Environmental compliance managementAddressing climate changeEnergy utilizationWater resource utilization
Circular economyPollutant dischargeWaste managementEcosystem and biodiversity
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Winner Group strictly follows the ISO 14001 environmental management systems to establish and enhance our managementframework. We set environmental objectives, develop an environmental management manual, and implement environmentalmanagement procedures, continuously strengthening our environmental management capabilities.
millionRMB
%
8.3258
In terms of the organizational structure of environmental protection, the Company has set up a leading group headed by the vicepresident, which is the supervisory body for our environmental protection initiatives. The general manager of each subsidiary(branch) or the person in charge of the unit is the first person responsible for the company's (unit's) environmental protectioninitiatives, with a full-time environmental protection agency and full-time personnel.
We have organized various environmental training sessions to optimize our environmentalmanagement, and strengthen our emergency response capabilities. These sessions cover keytopics such as environmental regulations, compliance training, emergency management, pollutantdischarge, and wastewater operations, aiming to raise employees’ environmental awareness andsense of responsibility.
The Company and its subsidiaries have established leading groups for environmental emergenciesand developed theEnvironmental Emergency Response Plan. We have enhanced our emergencyresponse systems for environmental pollution accidents, bolstering our ability to manage majorenvironmental pollution accidents and ensuring operational safety. Meanwhile, regular drills forenvironmental emergencies are carried out to prevent and minimize the occurrence of accidents.
The Company sets annual environmental goals and strengthens the monitoring of energy consumption, pollutant discharge,and other environmental data throughout production and operations. Based on the monitoring results, we continuously improveenvironmental management performance and enhance our environmental management capability. In 2024, all environmentalmanagement goals were successfully achieved.
Winner Group actively implements the green development strategy aswell as the policy of green, low-carbon development. In line with nationallaws and regulations on environmental protection, we have formulatedand updated theEHS Management Manual, Environmental ManagementStandards, Environmental Protection Management System, Measureson Environmental Management Standards, Rewards and Punishment,Regulations on Environmental Work Supervision, andRegulationson Energy Saving and Consumption Reduction Management, etc. tostrengthen our integrated environmental management capabilities.
Environmental management framework
Environmental management goals
Environmental management system
Environmental
goals
Nogovernmentpenalties
Compliancewith thestandard forexhaust gas
discharge
Noaccidentalpollutionincidents
Compliancewith wastedisposalregulations
NoenvironmentalpollutionincidentsCompliancewithwastewaterdischargestandards
Compliance
with thestandardfor noise atboundary
Noabnormalities
in on-siteenvironmental
inspections
Enhancing Environmental Management
Management system enhancement
The Company actively improves environmental management while continuously strengthening the environmental managementawareness and capabilities of our employees and suppliers. Regular specialized training and drills on environmental managementare conducted for both employees and suppliers.Pro-Environmental Mindset CultivationA sound environmental management system is fundamental to effective ecologicalprotection. The Company strictly complies with theEnvironmental Protection Law
and other relevant Chinese laws and regulations. Upholding the environmentalpolicy of " work safety, green and low-carbon development, and the continuouspursuit of social trust," we continuously improve our environmental managementsystem and enhance environmental awareness.
Key performance
Key performance
Energy conservation and environmentalprotection investment
Coverage rate of ISO14001 environmentalmanagementsystems certification
Winner Group and itssubsidiaries werenot subject toenvironmentaladministrativepenalties
Environmental management training
Environmental emergency drillsWinner Medical (Chongyang) environmental compliance training
"Two Mountains” theory special study on World Environment Day
The Plant of Winner Medical(Jiayu) conducts environmental emergency drill
Key performanceNumber of environmentalprotection training sessionsconducted:
Key performance
Number of environmentalemergency drillsconducted:
4950
Winner Medical Co., Ltd. ESG Report 2024Sound GovernanceSolid Foundation
Quality ProductsHealthy Life
Low-Carbon DevelopmentGreen Future
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Potential impactResponse strategy
Physicalrisks
Climate change may lead to increasingly severeextreme weather events, such as more frequent storms,typhoons, and floods. These extreme weather conditionscould potentially damage a company's productionfacilities, power supply, or water infrastructure,disrupting its supply chain. As a result, operational costsmay rise, along with the expenses required to maintainassets, equipment, and facilities.
·Identify the climate vulnerabilities of the regions where
our production bases are located and gradually enhancethe capacity to respond to climate change.
·Strengthen monitoring and early warning systems forextreme weather, develop emergency response plansfor natural disasters, and conduct annual emergencydrills and training for environmental incidents to improveresilience against extreme weather.·Prioritize climate-resilient infrastructure in constructionprojects, such as seismic-resistant and flood-proofdesigns.
Transitionrisks
·With China’s "30·60" decarbonization goals and theintroduction of new policies supporting the low-carbontransition, high-emission economic activities will faceincreasing pressure, leading to higher R&D costs forgreen production.
·As brand clients impose stricter requirements on
low-carbon products, we will need to invest more inresearch, technology, and equipment, which will furtherdrive up costs.
·Strengthen communication with the government and
regulatory authorities, and proactively adjust operationsin response to policy changes.·Utilize clean energy sources such as natural gas andbiomass while increasing the share of renewable energy.·Implement multiple environmental technology upgradeprojects, replace outdated equipment, and upgradeenergy-efficient motors to enhance energy efficiency.
Potential impactResponse strategy
Opportu—
nities
·Governments are increasingly promoting technologicalimprovements and innovations that support the transitionto a low-carbon economy, leading clients to favor greenand low-carbon products and services.·By accelerating the development of products andservices that align with market demand and expectations,the Company can achieve long-term sustainable businessgrowth and revenue expansion.
·Develop a digital platform and upgrade the Win+
Energy Management System (EMS) to enhance energyefficiency.·Integrate the concept of sustainability into every stage,from material use and manufacturing to packaging,transportation, usage, and recycling, ensuring carbonemissions are managed throughout the product lifecycle.·Continuously refine manufacturing processes, conductproduct carbon footprint analyses, and create morelow-carbon or zero-carbon products across their entirelifecycle.
·Goals for addressing climate change
Risk and opportunityidentification
Risk assessmentRisk control
Addressing Climate ChangeGlobal climate change not only threatens human survival and development but also significantly impacts the stable operationsof businesses. Actively responding to climate risks has become an essential responsibility for every company. We continuouslyincorporate climate considerations into our strategic planning, proactively identifying potential risks and opportunities based on ourbusiness characteristics and foundations. By doing so, we contribute to global efforts in both mitigating and adapting to climatechange.The Company has joined the SBTi (Science-Based Targets initiative) project and plans to complete key steps such as projectinitiation, carbon verification, target submission, and review between September 2024 and June 2025, ensuring that the carbonreduction targets are verified by SBTi. In parallel, the Company is advancing supply chain emission reductions by mapping,classifying suppliers, sharing information, integrating procurement practices, internal assessments, and collaborating with suppliersto build a closed-loop management system. Moving forward, the Company will continue to deepen its involvement in the SBTiproject and supply chain emission reduction strategy, strengthen collaboration, and continuously address climate change.
We are deeply concerned about the challenges and opportunities posed by climate change. At all levels, including strategicplanning and operational management, we actively embed strategies for addressing climate change. We are building theCompany's carbon emission and carbon asset management system, advancing efforts in climate change mitigation, energyconservation, carbon reduction, and the optimization and upgrading of carbon assets. Each branch (subsidiary) is activelyimplementing the relevant goals and plans in accordance with regulations.
Focusing on key climate-relatedfactors affecting the industry andthe Company, we identify climate-related risks and opportunities,including physical risks, transitionrisks, and climate opportunities, todevelop a comprehensive risk andopportunity list.
Note: During the reporting period, the Company initiated the processof joining the SBTi and is setting new GHG emission reduction targetsin accordance with SBTi requirements. The new targets will bedisclosed upon SBTi verification.
Consider the likelihood, timeframe, and severity of climaterisks, and assess their potentialimpact on the Company'srevenue, costs, assets, employeehealth and safety, amongother factors; based on theassessment results, adjust thepriorities of climate changerisk management efforts.
Identify and assess variousclimate risks, develop targetedcontrol measures, and explore andcapitalize on potential opportunities;each subsidiary is responsible forimplementing risk response andmanagement measures.
To proactively address climate change and enhance our risk prevention and early warning capabilities, we assess the potentialimpact of climate-related risks and opportunities on our operations based on industry characteristics and actual circumstances.
Climate governance
Impact, risk, and opportunity management
Metrics and targets
Peak carbon dioxide emissions by 2027and achieve carbon neutrality by 2050
Climate strategy
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GHG categoryUnit2024
Scope 1 GHG emissionstCO
e32,222.54Scope 2 GHG emissionstCO
e181,006.56Scope 3 GHG emissionstCO
e1,014,392.14Total GHG emissionstCO
e1,227,621.24GHG emissions per unit of revenuetCO
e/ RMB 10,000
1.36
Purchased goods and services
66.29%
Capital goods
0.78%
Fuel and energy-related activities
5.11%
Upstream transportation and distribution
11.14%
Waste generated in operations
0.27%
Business trip
0.27%
Employee commuting
0.38%
Upstream leased assets
0.01%
Downstream transportation and distribution
6.47%
Processing of sold products
0.63%
Disposal of end-of-life sold products
8.50%
Downstream leased assets
0.14%
Distribution ofscope 1, 2 and 3emissions
The distribution ofscope 3 emissions
Scope 1
2.62%
Scope 2
14.74%
Scope 3
82.63%
Raw material usage
Manufacturing
We prioritize eco-friendly materials, advocating for “cotton over chemical fibre”. Our products usenatural, eco-friendly pure cotton fibers, which can decompose into organic fertilizer, leaving noenvironmental burden.
We adopt low-pollution and low-energy-consumption production processes to minimize environmentalimpact and reduce carbon emissions.
·Indicators
Developing Green Products
Committed to the philosophy of environmentally sustainable operations, Winner Group actively promotes the research, development,and promotion of green products. We also advance product carbon footprint certification and vigorously foster the development ofa circular economy to achieve environmental sustainability and resource conservation.
The Company integrates the sustainability philosophy into every stage of the product lifecycle, including material use,manufacturing, packaging, transportation, usage, and recycling. By managing carbon emissions throughout the entire lifecycle, weensure that our products not only meet high quality standards but also provide environmental and low-carbon benefits. Lookingahead, we will continue to improve our manufacturing processes, optimize product lifecycle management and carbon footprinttracking, and develop more green products with low-carbon or even zero-carbon footprints.
In order to clarify the current status of the Company's greenhouse gas emissions and lay the foundation for the formulationof carbon emission reduction strategies and related work, we actively carry out third-party greenhouse gas verification withreference to theGreenhouse Gas Part 1: Specification With Guidance at the Organization Level For Quantification and Reportingof Greenhouse Gas Emissions and Removals (ISO 14064-1:2018)and theGreenhouse Gas Protocol: Corporate Accounting andReporting Standard(Revised) (GHG Protocol).
①The organizational boundary of the above carbon inventory and carbon accounting is set as wholly-owned subsidiaries and holding subsidiaries with
operational control in China, and the organizational boundary setting method is the "operational control method".
②This inventory covers following types of greenhouse gases: carbon dioxide (CO2) methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), nitrogen trifluoride (NF3) and sulfur hexafluoride (SF6). According to the inventory, four types of greenhouse gases including CO2CH4 N2O and HFCs, were involved in the reporting period.
③Greenhouse gas emissions are calculated based on: ISO 14064-1 Greenhouse Gases – Part 1: Specification With Guidance at the Organization Level
for Quantification and Reporting of Greenhouse Gas Emissions and Removals, General rules for Calculation of the Comprehensive Energy Consumption;Average CO2 Emission Factors of Electricity of China in 2021; average emission factor of China's power grid in 2022; IPCC 2021 /Ar6-wg1-errata;Guidelines for the Preparation of Provincial Greenhouse Gas Inventories (Trial); UK Government GHG Conversion Factors for Company Reporting-2024;Ecoinvent database; EEIO database, etc.
Note:
Product lifecycle management
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Winner Medical Co., Ltd. ESG Report 2024Sound GovernanceSolid Foundation
Quality ProductsHealthy Life
Low-Carbon Development
Green Future
Shared ProsperityThriving Communities
·gauze sheets·gauze balls·gauze pads
Purcotton soft tissues, women'shyaluronic acid knitted T-shirts, purecotton children's disposable underwear,pure cotton women's disposableunderwear, pure cotton men'sdisposable underwear, baby long robesand bathrobes, baby cotton wet wipesfor hand and mouth, satin beddingsfour-piece set.
Carbon footprint declarationfor gauze sheets, gauze balls,gauze pads and cotton non-woven fabric sheets
Old clothes recycling binat Purcotton stores
Packaging and transportationIn the medical business sector, we have pioneered the use of dialysis paper film instead of plasticfilm in medical product packaging through technological innovation, leading the industry in achieving"paper-paper packaging" and eliminating plastic in packaging.In the consumer goods sector, our stores have replaced plastic bags with cotton non-woven shoppingbags. Multiple products have transitioned to plastic-free packaging.
Usage and recyclingWe have established durability quality standards, requiring that garments maintain their soft texture,effective antibacterial properties, and stable UV protection even after 100 washes. This significantlyextends the lifespan of clothing and reduces resource consumption.We are actively exploring the feasibility of applying recycled cotton fibers in the medical consumablessector, transforming waste cotton fibers into tri-resistant medical materials with alcohol-resistant,blood-resistant, and oil-resistant properties, effectively reducing environmental pollution.Purcotton stores have launched the "Old Clothes, New Life" initiative, where collected old clothes aresent to factories to be transformed into reusable cotton bags, packaging bags, and other items in thefuture.
The Company continues to focus on the carbon footprint of our products. We conduct carbon footprint verification for multiplecore products to achieve carbon reduction throughout the entire process, and consistently provide environmentally friendly, low-carbon products to society.Product carbon footprint certification
The products that have obtainedthe product carbon footprintcertification are as follows:
Daily consumer products
Medical products
5556
Winner Medical Co., Ltd. ESG Report 2024Sound GovernanceSolid Foundation
Quality Products
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Building a digital platform
Upgrading energy-intensive
motors
Optimizing automation control
Constructing a cooling station witha high-efficiency equipment room
%
KPIsUnit2024
Direct energy consumptionton of standard coal18,079.26Indirect energy consumptionton of standard coal37,020.01Total energy consumptionton of standard coal55,099.27Energy consumption intensity
ton of standard coal/ RMB 10,000
of revenue
0.12
Clean energy consumptionton of standard coal17,926.50Proportion of clean energy%32.5
2024
tonTon/RMB million of revenue4,512,313
Promoting Green ProductionFocusing on optimizing resource utilization and reducing environmental impact, Winner Group implements eco-friendly practicesat every stage of the production process to create green plants.
The Company continuously enhances our ability to manage and utilize resources such as energy and water, promoting the efficientand circular use of resources. This effort supports the development of a resource-saving and environmentally-friendly society.
In compliance with theEnergy Conservation Lawand other relevant Chinese laws and regulations, we have developed a series ofinstitutional standards, including theEnergy Management Manual, theEnergy Conservation Operation Control Procedures, theEnergy Data Collection Plan, the Annual Energy Conservation Measures Plan List, and theManagement Review Plan. Built on ourcomprehensive energy management system, we continuously promote energy conservation measures for higher energy efficiencyand reduce energy consumption by effective energy conservation and consumption reduction measures.
The Company strictly complies with theWater Lawand other relevant Chineseregulations, promoting water recycling and reuse. We are committed to fosteringawareness of “water is the source of life”, minimizing reducing waste, andcontinuously improving water efficiency. Our production water sources vary byproject location and primarily include municipal water supply, surface water,and recycled process water. For surface water, we obtain the necessary waterwithdrawal permits in accordance with regulations, ensuring that water sourcinghas no significant environmental impact.
We continue to develop and upgradethe Win+ Energy ManagementPlatform (EMS), enabling real-timecollection and online monitoring ofenergy consumption data, as well asenergy consumption and efficiencyanalysis.
Energy-efficient motor upgradeshave been implemented at our fourplants in Guilin, Jingmen, Wuhan,and Tianmen, where eight motorshave been replaced with variable-frequency drive permanent magnetsynchronous motors. With a totalpower capacity of 2,495 kW, thisupgrade has resulted in a 15%energy savings, generating anestimated annual cost reduction ofapproximately RMB 2.15 million.
Automated control of water intakelevels has been implemented,enabling automatic start and stop ofwater pumps, as well as automatedmaterial feeding in dryer hoppers.This enhances our efficiency byreducing labor requirements,conserving water and electricity, andminimizing human errors.
The new plant of Winner Medical(Jiayu) has invested RMB 8 millionin constructing a 3,300RT centralcooling station with a high-efficiencyequipment room. The primary andauxiliary equipment use Level 1energy efficiency, and the facilityis equipped with a smart energy-saving control system. The systemis expected to achieve an energyefficiency ratio of over 5.1 for thecooling station machinery room.
Resource utilization optimization
Energy management
We have pioneered the application of waterless pre-treatment technology, replacing water with organicsolvents as the processing medium. This breakthroughhas resulted in a 60% reduction in chemical additivesduring the desizing and bleaching stages, while achievingover 70% water savings and more than 70% pollutantreduction.We have enhanced the efficiency of the circulating watertreatment process by deploying automated dosingsystems for precise chemical control and retrofitting sandfilter tanks with air-wash technology. These improvementshave extended water reuse cycles and significantlyreduced fresh water consumption.
We have enhanced the recycling of cooling water from high-pressure pumps, vacuum pumps, and other equipment, as well asthe tiered reuse of process water in workshops, including overflowwater, desizing and bleaching rinse water, and condensate fromdehumidifiers.Thermal insulation has been applied to dyeing pressure vessels,reducing steam and electricity consumption while recovering andrepurposing cooling water for production cycles.Our new plant of Winner Medical (Jiayu) has invested over RMB4 million in constructing a reclaimed water reuse system. Thissystem employs multimedia filtration, ultrafiltration, and reverseosmosis (RO) system to treat reused water, achieving a recycledwater reuse rate of over 60%.
Process innovationRecycling and reuse
Water resource management
Case
With the Company’s production capacity expanding significantly, the demand for finished product and raw materialstorage has increased, making traditional manual warehouses inadequate. In response, our plant of WinnerMedical(Jiayu) has invested RMB 20.588 million to introduce an automated high-bay warehouse, integrating thewarehouse management system(WMS) and the warehouse control system(WCS) to build an intelligent warehousingsystem. Through automation and smart management, the plant has significantly accelerated the inbound andoutbound logistics, boosting logistics efficiency while reducing operational time and costs. Additionally, byincorporating 5G technology, the system enables real-time mobile monitoring, minimizing the risk of goods being lostor damaged. By the end of the reporting period, the plant has successfully realized multiple intelligent managementscenarios, covering supply chain management, intelligent warehousing, equipment management, quality control, andenvironmental management.
Transforming “manufacturing” into “smart manufacturing”–revitalizing new qualityproduction forces in the old plant of Winner Medical (Jiayu)
Key performance
Key performance
Honor
Coverage of ISO50001 energymanagementsystems certificationWinner Medical (Jiayu) was recognized asone of the first batch of Hubei 5G plantsfor 2024 and was awarded the title of aprovincial-level green plant for 2024 by theDepartment of Economy and InformationTechnology of Hubei Province.
Winner Medical(Tianmen) wasawarded the titleof "National Green
Plant".
Total water usageWater resource use intensity
5758
Winner Medical Co., Ltd. ESG Report 2024Sound Governance
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Without affecting the proper sealing of packages,the sealing tape specifications are optimized toreduce tape usage.For popular product combinations, we implementa pre-assembly workflow and promote a directshipping model with original cartons, eliminatingthe need for bulk sorting and directly reducingthe use of protective packaging materials.Eliminating the use of individual bag protectionfor single items, we implement a single-layerprotection scheme by optimizing packagingstructure design. This reduces the use ofprotective materials while ensuring transportationsafety.
million m
tontonton
289.17
2.0821.790.49
The Company has established theLogistics Center Packaging Materials Management System, which encourages the recyclingof packaging materials. Through recycling, packaging reduction, and optimizing the system to increase order consolidation, weeffectively reduce resource consumption and greenhouse gas emissions, promoting the development of a circular economy.During the reporting period, we successfully achieved the packaging materials management target with a packaging cost rate ofless than 0.7%.
The Company strictly complies with national and regional emission standards, including theIntegrated Emission Standard of AirPollutants(GB16297-1996), theEmission Standard for Odor Pollutants(GB14554-1993), and theEmission Limits of Air Pollutants(DB44/27-2001) by Guangdong Province. We rigorously control the emission of exhaust gases and dust into the atmosphere,conduct regular third-party monitoring, and ensure compliance with emission standards.
In accordance with theWater Pollution Prevention and Control Lawand other relevant Chinese laws and regulations, the Companyhas developed theSewage Treatment Station Process Flow and Operating Standards, as well as theRegulations on the Treatmentof Exhaust Gas, Wastewater, and Noise, to enhance the management and control of water pollutant discharge during production,ensuring compliance with discharge standards. The main sources of wastewater include domestic sewage, production wastewater,and laboratory wastewater. After preliminary treatment in an oil separator, canteen wastewater is combined with domestic sewageand treated in a septic tank. Production wastewater is subject to advanced treatment at a sewage treatment plant before beingdischarged into the municipal sewer system. Laboratory wastewater is handled by a qualified third-party disposal company and isnot released into the environment.
Continuous blowing-carding processes effectivelyreduce cotton dust generation through processintegration. Equipped with composite cage dustremoval equipment, the system achieves 99.5%cotton dust filtration, with purified air recycled intothe workshop, ensuring no dust emissions.
Laboratory gases are treated with alkaline scrubbingand activated carbon adsorption before beingdischarged through a 15-meter exhaust stack at therooftop.
A regenerative thermal oxidizer (RTO) combinedwith a thermal storage combustion tail gastreatment system is used to ensure thatpollutant emissions meet national standards.
Packaging boxes are designed to closelymatch the dimensions of the shippingcartons, replacing existing cartons ofthe same size to enable reuse, thusreducing the need for new cartons.
Packaging material managementWaste gas management
Wastewater management
Packaging
materialrecycling
Packaging
materialreduction
Eliminating the use of individual bag protection for single items
Workshop dust
Laboratory exhaust
Use clean energy natural gas and employ low-nitrogen combustion technology.
Boiler combustion exhaust
Production exhaust
Before optimization After optimization
In line with the philosophy of green development, the Company places high importance on pollutant emission management.We have established management systems for the “three wastes” (waste gas, wastewater, and solid waste) and continuouslyimplement pollution prevention and control measures to minimize emissions. Each branch (subsidiary) holds an emissions permitand registration form, follows the guidelines in the permit for emissions and monitoring, and submits the required compliancereports. No administrative penalties were imposed during the reporting period due to environmental issues.
Environmental impact mitigation
Exhaust gas emissionsPM2.5NOxSO
2024Key performance
tonton
3.44
141.988.21
Total wastewaterChemical oxygen demandAmmonia nitrogen2024Key performancemillion m
604.105,237.34
2024
tonton
Key performanceNon-renewable materialconsumption
Packaging materialconsumption
5960
Winner Medical Co., Ltd. ESG Report 2024Sound Governance
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CategoryWaste compositionTreatment methodHazardous waste
Chemical raw material drums, waste
engine oil, waste resins, waste
chemicals, etc.
A disposal agreement is signed with a qualified third-party
company, which is responsible for regularly transportingand disposing of hazardous waste and toxic substances.
Recyclable generalindustrial waste
Reusable items: turnover boxes/frames,
etc.
The Production Management Department arranges timely
recycling and reuse.Renewable: Waste cardboard, wasteplastics, broken glass, torn fabrics, etc.
The Administration Department is responsible fortransferring them to waste recycling companies withoperational qualifications for processing. (Products andpackaging materials need to be crushed or destroyedbefore being handed over to the recycling companies.)Non-recyclablegeneral industrialwaste
Demolition waste, slag, scraps, wallsoil, rags, cotton scraps, and othernon-hazardous waste generatedduring production
The Administration Department regularly transportswaste to government-designated waste disposal stations
for processing (incineration, landfill, etc.).Household wasteLeftover food, etc.Waste is handled by the sanitation department.
In accordance with theLaw on the Prevention and Control of Environmental Pollution by Solid Wastes, the Company hasestablished theWaste Management System. Adhering to the principles of "classified recycling, centralized storage, and unifieddisposal," we aim to minimize the environmental impact of solid waste.
Recognizing the critical importance of protecting natural resources and biodiversity, we strictly adhere to national ecologicalprotection regulations. Our production and operations are planned to avoid key ecological function zones, ecologically sensitiveareas, fragile ecosystems, and prohibited development zones. Prior to construction, we prepare environmental impact assessmentsand soil and water conservation plans, and proceed with our construction and production in accordance with governmentapprovals. Throughout the project development and operational phases, we take effective measures to minimize ecologicaldisruption and protect biodiversity. During the reporting period, no significant incidents impacting biodiversity occurred.
Purcotton "Mountain and SeaHealing Project" poster
Wilderness cleanup campaign
Eco-themed flash events at universities
Purcotton donates supplies
to sanitation workers
Waste management
Ecosystem and biodiversity conservation
Promoting Green PhilosophyIn line with the philosophy of green development, the Company uses cotton as a bond to actively fulfill our social responsibilities.By organizing various green initiatives, we demonstrate our commitment to green development, healthy living, and a sustainablefuture.
Case
Case
On April 22, 2024, to promote the philosophy of environmentalprotection, Purcotton launched the "Mountain and Sea HealingProject," a public welfare initiative focused on protectingmountain and marine environments. The event broughttogether Purcotton members, university students, andvolunteers, who participated in activities such as recyclingold clothes, litter picking, and making charitable donations, allaimed at advocating for a greener, more sustainable lifestyle.
In April 2024, PurCotton gathered 30 university students for a wilderness cleanup campaign in Dongchong. At thesame time, the company visited three universities to host eco-themed flash events, partnering with Generation Z toactively promote and embrace green living and sustainable practices.
Purcotton launches “Mountain and SeaHealing Project” to advocate green living
"We Eco Muti-purpose Cotton" campus environmental initiative
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Winner Medical Co., Ltd. ESG Report 2024Sound Governance
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Quality Products
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Winner Group is guided by the belief that social value must take precedence incorporate development. We embed this responsibility into every aspect of our opera-tions, building a responsible supply chain, engaging in charity and social welfare, andenhancing employee management. In this way, we aim to achieve a harmoniousbalance between corporate value and social value, making contributions to the com-munities we serve.
SharedProsperityThriving Communities
Key ESG Topics Addressed in This Chapter:
Supply chain securityEqual treatment of SMEsSocial contributionRural vitalization
Employee rights and benefitsTalent attraction and retentionEmployee training and developmentOccupational health and safety
Winner Medical Co., Ltd. ESG Report 2024
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Originally obtained AEOcertification in January 2020
Total suppliersNew suppliers added
Winner MedicalPurcottonLocal sourcing rate
%%
1,352
Suppliers signed theIntegrity Commitment
%
Percentage of newsuppliers at WinnerMedical that underwentenvironmental and socialimpact assessments:
Percentage of newsuppliers at Purcotton thatunderwent environmentaland social impactassessments:
98100
GRI
%
Risk identificationManagementplans and targets
Responsemechanism
Informationdisclosure andremediation
%
%
Supplier onboarding
Supplier exit
Building a Responsible Supply ChainAs a core part of business operations, supplier management plays a vitalrole in ensuring product quality, controlling costs, and improving overalloperational efficiency. Winner Group continues to optimize and elevateits supplier management practices based on tighter risk control, closercollaboration and coordination, and stronger resilience and security ofthe supply chain, laying a strong foundation for long-term sustainablegrowth. During the Reporting Period, there were no overdue paymentsto small and medium-sized suppliers.
HonorIn December 2024,Winner Medicalsuccessfully passed theAuthorized EconomicOperator (AEO)recertification audit.
Key performance 2024
Key performance 2024
Key performance
Winner Group has established a clearly defined organizational structurefor supply chain management across the full lifecycle of suppliers. Wecontinue to enhance our supplier management system with the goalof building a process that is lawful, compliant, fair, transparent, just,efficient, and visualized. In 2024, we upgraded several key internalregulations, including Supplier Performance Evaluation Management,Supplier Classification and Grading, andSupplier Onboarding ReviewGuidelines.We also have launched a best practice sharing mechanism acrosssubsidiaries, selecting those with outstanding supplier managementperformance as model cases. By analyzing their successful strategiesand replicating proven practices, we promote continuous improvementin supplier governance across the entire company.
We conduct Corporate Social Responsibility (CSR) and EHS (Environment, Health, Safety)assessments. Key criteria include environmental risk, social risk, use of green energy, andwork safety. ESG assessment scores carry a 10% weight in the overall supplier assessment.·
Collaborating with suppliers to launch the Science Based Targets initiative (SBTi)·
Collecting carbon data and conducting carbon footprint analysis·
Discussing decarbonization pathways across material categories·
Integrating carbon reduction goals into procurement practices·
Partnering with outstanding suppliers to co-develop and innovate in green materialR&D and manufacturingSuppliers who remain non-compliant even after environmental tutoring will be phased out
A dedicated Supply ChainInternal Control TaskForce was established tocomprehensively assess,categorize, and prioritizepotential risks across thesupply chain.
A detailed supply chainrisk management planwas formulated, settingclear managementobjectives alongside amechanism for ongoingimprovement.
To manage pricingrisks in key categories,we have developeda commodity pricingmonitoring tool,enabling early warningalerts in responseto abnormal pricefluctuations.
Risk managementprogress is regularlyreported internally.Targeted rectificationinitiatives have beenimplemented for risk-related supplier behaviors,and employee awarenessof supply chain risks hasbeen strengthened.
We continuously enhance supply chain risk controls through a closed-loop management system. Externally, we attach importance to theperformance of suppliers in the environmental and social fields, andrequire suppliers to adhere to ourSupplier Management Systemandsign theIntegrity Commitment. Internally, we build a layered preventionand control system. Winner Group's Supervision/Audit Department isresponsible for the strategic compliance review at the company level,and the Supply Chain Internal Control Organization executes the riskcontrol at the business level such as purchasing, production, logistics,etc., and both of them work together to establish a KCP risk map.Relying on the PDCA mechanism, quarterly audits are carried out, andclosed-loop risk management is realized through the hierarchical earlywarning system, forming a dual-track system of “strategic supervision +business prevention and control” to enhance the resilience of the supplychain and the ability of risk control.
Management system optimization
Tighter risk management
·Closed-Loop risk management
·ESG risk management
Supplier development and maturity
6566
Winner Medical Co., Ltd. ESG Report 2024Sound GovernanceSolid Foundation
Quality Products
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millionRMB
5.478
Security and stability assurance
Digitaldevelopment
We continue to introduce advanced digital tools and data analytics to optimize supply chain managementsystems. Key focus areas include supply chain business intelligence (BI) visualization, launch andoptimization of Advanced Planning and Scheduling (APS) systems, and application of TransportationManagement Systems (TMS) and Warehouse Management Systems (WMS). These tools drive end-to-end efficiency and visibility, improve delivery performance, reduce costs, and support excellent operationsacross the entire supply chain.In terms of internationalization strategy, Winner Group always adheres to the concept of “globalization” andactively expands the international market. Through international mergers and acquisitions and investments,the Group has set up overseas production bases to improve the global supply chain layout. 2024, wesuccessfully acquired GRI, a U.S. medical consumables company, to realize global resource allocation inproduction, procurement, R&D, and sales. After promoting the overseas strategy, the company's productshave entered the markets of Europe, America, Southeast Asia, the Middle East, Africa and other countriesand regions, while enhancing the international influence of the brand and consolidating its leading positionin the global medical supplies field.
Globalexpansion
We focus on three major dimensions to improve professional capabilities. First, the supply chain securitytraining system, for procurement, production and other key positions to carry out supply chain securitytraining, covering risk identification, internal control mechanisms and emergency response processes,focusing on strengthening internal security compliance awareness and crisis response capabilities. Secondly,demand plan synergy, end-to-end supply and demand synergy through the S&OP mechanism, identifyingresource gaps in advance and formulating flexible supply solutions, and increasing the delivery rate ofcustomer orders to 98%. Third, digital capacity building, iterating the supply chain visualization platform,building end-to-end data transparency and full chain traceability mechanism, focusing on enhancing thedata penetration of demand forecasting, inventory tracking, risk early warning and other modules, supportingreal-time decision-making and preplanned rehearsal, and driving the enhancement of operational efficiency.
Buildingprofessionalcapabilities
We provide specialized training for suppliers. For major fabric suppliers, our fabric quality engineers deliverregular quality control (QC) training, combining theoretical knowledge with real-world case studies toenhance product qualification rates. For finished goods suppliers, our quality engineers provide regularon-site training on product quality standards and production techniques. They also advise on productionenvironments, hand movements, workstation layouts, and staff deployment, thereby ensuring consistentquality and reliable delivery timelines.
Supplierempowerment
Suppliers covered bytraining programs*Note: Excluding data from GRI, acquired in 2024.
Key performance
Case
We have always attached importance to the ecological construction of the supply chain, through the establishmentof the annual supplier conference exchange mechanism, and continue to deepen the collaborative innovationand value creation of the industry chain. On May 24, 2024, Winner Group successfully held its First SupplierConference themed “Integrity in Action Co-creating a High-quality Supply Chain” in Shenzhen. The conferencecenters on three core issues: new quality productivity, green supply chain, and integrity advocacy to carry outin-depth discussions and practices. The event brought together suppliers and companies to strengthen mutualunderstanding and trust. Through exchange and sharing, we work to jointly build a more quality, efficient, andgreen supply chain, bringing better products and services to consumers around the world.
Integrity in Action: co-creating a high-quality supply chain
Spreading Warmth and Positive EnergyGuided by its core principle of “Quality over the profit, Brand over the speed, Socialvalue over the corporate value.” Winner Group actively participates in charityinitiatives. By spreading care and compassion, we give back to society while settingan example—not only as a leader in the medical industry but also as a proactiveadvocate for corporate social responsibility.
Total charitabledonations in 2024Key performance
While continuing to deepen its focus on healthcare and healthcare, Winner Group also embraces its social responsibility as aprivate enterprise to serve the greater good—acting as a “fire keeper” in society, bringing light and warmth where it’s most needed.
In 2024, Winner Group donated medicalsupplies valued at RMB 660,000 to Guangxiand Heyuan. Through the Longhua DistrictCharity Association, the supplies weredistributed to the Rural Vitalization Bureau ofFengshan County, Guangxi, Donglan CountyPeople’s Hospital, Guangxi, and Zijin CountyGovernment, Heyuan, Guangdong. A totalof 1,091 boxes of supplies were donated tosupport public healthcare efforts in the region.
To support couriers, pick-up anddelivery drivers, and food deliveryworkers across the city and help themstay comfortable during the summerheat, we donated 26,060 cooling vestsin 2024, valued at RMB 3.58 million.
For others
Supporting public healthcare
Caring for emerging employmentgroups
Case
From June 16–17, 2024, Meizhou’s SongkouAncient Town in Guangdong Province was hit by adevastating flood, with water levels peaking at 59meters. The disaster left many residents withoutwater and electricity, and homes buried in mud.Immediate relief was urgently needed. In partnershipwith the Meizhou Hakka Chamber of Commerce andlocal Red Cross, Winner Group responded quickly,anddonated RMB 60,000 worth of emergency supplies—including masks, disinfectant wipes, and iodine—based on the relief organization’s priority needs.The donations provided timely support to help theaffected communities recover and return to normallives.
Disaster relief for Meizhou floods
Donation of emergency supplies for Meizhou Red Cross
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Solid Foundation
Quality ProductsHealthy Life
Low-Carbon DevelopmentGreen Future
Shared ProsperityThriving Communities
Winner Group is committed to empowering women and addressing their health and development needs. We strive to supportwomen’s employment, promote public health, and help women in the new era thrive and shine with confidence.As a partner organization, Winner Group co-producedthe short film “My Doctor Friend” with Nanshan People’sHospital in Shenzhen andBaixiaoyiin 2024. The filmtells the inspiring story of Dr. Yang Qiong—one of thecountry’s few top female otologic surgeons—highlightingthe positive energy of women in the new era.
In collaboration with the Longhua District Women andChildren Assistance and Development Fund, WinnerGroup participates in a charity sale event to supportthe “Employment Support” program. The initiativehelps women with entrepreneurial aspirations byoffering employment guidance, skills training, andsupport services, empowering more women to pursuetheir dreams.
For her
The healthy development of children shapes the future of a nation.Securing children’s healthy growth is an important mission in socialdevelopment. Committed to children’s well-being, Winner Groupactively supports child-focused charity programs to address children’sneeds, contributing to a better future for the next generation.
For children
Amplifying her voice
Supporting women’s employment
Houhai Metro Station Exhibition
Scan the QR code for “Hear What Children Say” campaign film
Case
Case
In 2024, NicePrincess, Purcotton’s sanitary napkin brand, launched a public welfare campaign in partnership with theChina Women’s Development Foundation(CWDF). The “NicePrincess: A Better Period for Her” initiative focuses on themenstrual health of women and girls, particularly young students in under-resourced areas, by providing access tosanitary products and menstrual health education.
To mark Children’s Day 2024, Purcotton launched the campaign “Hear What Children Say.” The initiative collectedauthentic voices from 100 children and brought their voices to life through a creative metro station exhibition atHouhai Station, Shenzhen. An online campaign film and an offline children's fashion show complemented theexhibition. Through these diverse formats, the campaign encouraged parents to reflect on how they communicatewith their children, bridging understanding between generations and ensuring that children's voices are seen, heard,and respected.“NicePrincess: A Better Period for Her” – a nationwide menstrual health initiative
“Hear What Children Say”
We launched the “You Can Borrow a Pad from Me”peer-support initiative, offering free emergencysanitary pads at hundreds of retail stores acrossChina, shopping malls, airports, and universities, aswell as middle and primary schools. Additionally, wepartnered with the CWDF to donate 12,000 menstrualhealth kits to girls in underserved communities.
Donations
We released the short film “Letters from the MountainTown”, inspired by letters from 300 girls andmessages from 2,000 anonymous female donors.The film tells the story of Yudie, a rural schoolgirl inChongqing, and her connection with a caring donorsister. The campaign received 480 million views,drawing national attention to the challenges girls facein remote areas.
Public welfare short film
In collaboration with the CWDF, we offered menstrualhealth classes to help young girls in under-resourcedareas better understand their bodies and menstrualcycles. We also entered university campuses.Partnering with Professor Du Sujuan of ShanghaiJiao Tong University, we hosted a public lecture titled“How Female Friendships Relieve Pain,” aimed atstrengthening awareness of health and well-being.
Public welfare lectures
RMBmillion
2.5
Total donation value
pairs
Winner Yubu sport-style cloudsneakers donated to supportthe Pink Ribbon Children’s CareFund, under the ChongqingChildren’s Aid Foundation
100+
rural schools reached
12,000Girls benefited
Universitiesapprox.
approx.
Retail stores
Shopping malls nationwide
Key performance
Sanitary pad sharing boxesnow available at
Key performance
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Solid Foundation
Quality Products
Healthy Life
Low-Carbon DevelopmentGreen Future
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Anti-discriminationand fairtreatmentDiversity andinclusionAnti-forced labor,anti-harassment,and anti-abuse
·Compensation Incentives
Winner Group’s compensation & benefits system
RecruitmentInformationCompliance
RecruitmentProcessCompliance
Privacyand DataProtectionCompliance
Empowering Employee DevelopmentWinner Group continues to optimize talent deployment, and foster a positive and high-performing workplace culture, to unleashemployee potential. By strengthening team cohesion and encouraging creativity, we strive to grow together with our people andbuild a future of shared success.
Winner Group's employee development strategy is set by the Board of Directors and executed by the Winner Medical's HumanResources Department and Purcotton HR Department. They are jointly responsible for key areas including compliant employment,diverse employment, compensation and benefits, employee training, and other employee-related development initiatives.
Recruitment information should be truthfuland legal, and not contain false content,such as exaggerating job duties andsalary, or discriminatory content in termsof ethnicity, race, gender, religious beliefs,age, disability, and so on.
In the recruitment process, ensure fairness, impartiality and openness, anddo not recruit personnel through improper means, such as discreditingother employers and commercial bribery. At the same time, we comply withrelevant laws and regulations, such as not withholding resident identitycards and other documents of recruited personnel, and not collectingproperty from workers on the basis of guarantees or other names.
When handling candidates' personalinformation, we follow relevant privacyregulations, such as theCybersecurity Lawof the People's Republic of Chinaand theData Security Law of the People's Republicof China, to protect candidates' privacyand prevent information leakage.
Winner Group supports its strategic goals with an efficient and integrated operating structure, an industry-leading talent team, anda performance-driven corporate culture.
Governance
Strategy and management approach
As a responsible employer, we are committed tobuilding a fair, inclusive, and respectful workplace,where every employee is empowered to reach theirfull potential. We focus on enhancing employees'sense of well-being, belonging, and security, whileensuring equal opportunities for all.
Winner Group strictly complies with Chinese laws and regulations, such as theLabor LawandLabor Contract Law. We haveestablished a detailedEmployee Handbookaccordingly, outlining company policies across recruitment, promotion, compensation,and other key HR modules. It ensures that every stage of hiring, employment, and management adheres to legal requirements—fully protecting employees’ lawful rights. We sign legally binding labor contracts with all employees, strictly prohibit child labor, andoppose all forms of forced labor. We are committed to offering equal employment opportunities for all.
·We have developed theWinner Group Anti-Discrimination Code of Conduct, which explicitlyprohibits discrimination based on gender, race, marital status, physical attributes, surname,region, or religious beliefs.·Our anonymous reporting channels allow employees to report any instances of discriminationor unfair treatment. All complaints are investigated and addressed within a defined time frameto ensure fairness and justice.·We set clear diversity hiring targets. By 2024, women accounted for 85% of the workforce.·We organize various diversity-themed events to encourage employee participation in interest-based groups, fostering cross-functional and cross-cultural exchange and collaboration.·Labor contracts clearly stipulate employee rights to rest and paid leave, in accordance withnational labor regulations and internal company policies.·Employees have the right to refuse unsafe work in situations involving unlawful commands orhazardous assignments. They are also encouraged to raise suggestions, provide feedback, orreport violations to protect workplace safety and personal rights.
Talent attraction and retention
Honors
Purcotton named one of the “Most Influential Employers of 2025”by Liepin AI x Haitou.comWinner Medical awarded “2024 Outstanding Employer” by 51 JobWinner Medical awarded “2024 Youth Friendly Employer” by CIWEIPurcotton awarded
“Outstanding Partner” by CTG Group·Compliant employment
·Compensation and benefits
?Equity Incentives?Short and Medium Term Bonuses?Paid Annual Leave?Year-end Performance Sharing Bonus
·Insurance?Five Insurance and Housing Fund?Commercial Insurance·Growth and Development·Caring Welfare
·Happy Life
?Skills Training?Competitive Promotion?Rotation Program?Festival Bene?ts?Birthday Bene?ts?Caring Association?Hobby Association
?Talent Apartment?Sta? Dormitory?Delicious Cafeteria
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Quality Products
Healthy Life
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Support for employees in need:
Autumn Wutong Mountain Hiking Event
Ten Peaks ChallengeSpring Sports Day
We have implemented performance-based compensation policies covering all employee pipelines, aligning pay with value creation.Our competitive system offers performance bonuses and incentive schemes to boost staff motivation and creativity. Employeesalso have access to performance appeals mechanisms to ensure open communication.Long-term incentives are newly put in place. To further support our “Four-High Talent Strategy”—High personal quality. HighAcademic Qualifications; High Performance; High Compensation—Winner Group will launch a stock incentive plan from 2025 to2027. It is designed to attract and retain top-performing managers and key talent, and strengthen corporate governance.
We foster open communication with employees in various forms, offering them multiple channels to express views and needs. Wehave created the internal platform “Colleague Bar”, where employees can share experiences, thoughts, and feelings—encouraginginteraction and dialogue across departments. We also appoint culture ambassadors and internal trainers, who facilitatecommunication and training activities to promote a positive, self-sustaining corporate culture at both company and departmentallevels.Employee satisfaction surveys are conducted based on dedication research to listen to employee voices and identify areas fororganizational improvement, thereby optimizing a win-win development model between the Company and our employees. In2024, we conducted our third company-wide survey. The Purcotton business unit received a score of 4.17, while the score for themedical business is 4.15. Based on the results, we focused on improving team atmosphere, enhancing cohesion, and increasinghuman-centered care, continuously enhancing our employee satisfaction.
We have established the Employee Care Association andissued theManagement System of the Employee CareAssociationto ensure its standardized operation. With amission to serve and support employees, the associationprovides practical help to staff facing family hardship due toserious illness or major accidents. The initiative is stronglybacked by the Company’s Chairman, who not only donatedseed capital at the association’s launch but also continuesto contribute monthly. Each month, the Chairman’s donationmatches the total amount donated by all employees.
We have set up nursing rooms within the workplace, provided maternity and paternity care packages, rolled out sanitarypad sharing stations to offer timely, discreet support. These measures help create a more considerate and convenientwork environment for women.
Championing a culture of health and vitality, Winner Group organizes a wide range of athletic and recreational events,including the Spring Fitness Festival, the Ten Peaks Challenge, and the Autumn Wutong Mountain Hiking Event. To enrichemployees’ everyday lives and promote balance, we also run six regular clubs focused on badminton, basketball, tabletennis, tennis, dance & fitness, and outdoor running.
·Compensation and performance management
·Democratic management
·Employee care
635,000
Families supportedEmployees in need supportedDonated by the Employee Care AssociationRMB
Key performance
Tailored support for women employees:
Cultural and sports activities:
Case
In 2024, Winner Group held its third annual“Lighting Up Wishes” campaign, with 313 employeeparticipants sharing their heartfelt dreams. Among allthe wishes submitted, one stood out and resonatedwith many colleagues: “I wish the company couldopen a gym—even a small one— for employees tohelp us stay fit.” After thorough consideration andtaking into account the limited space available inour current offices, the Company partnered witha nearby gym to provide free memberships for allemployees through a corporate prepayment plan.
Lightning up employees’ wishes
Free Fitness Service for Employees
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Solid Foundation
Quality ProductsHealthy Life
Low-Carbon DevelopmentGreen Future
Shared ProsperityThriving Communities
Dual career development pathways
Position qualification system
Talent evaluation system
Promotion & advancement framework
WIN-WIN talent model WIN-Potential ModelWIN-Leadership Model
We work to build a strong platform of career advancement to upskill the workforce and improve their comprehensive capabilities.This approach will help employees grow in step with the Company’s development.
Employee training and development
Seeing talent as a critical asset, we attach great importance to employees’ growth and continued success. We have built ascientific and structured talent development system to help employees achieve their own growth.
We are committed to building a high-performing workforce. We have created a comprehensive, multi-level training system thatdelivers structured, professional support tailored to different employee levels and roles. This empowers employee growth, makethem stay innovative, and contribute to the Company’s continued progress.
New employees receive onboarding through in-person sessions and online modules, introducingthem to the Company’s culture, policies,organizational structure, business segments,strategic direction, and product lines. This ensuresa well-rounded understanding of Winner Medical,helping employees quickly adapt, embrace theculture, and gain the essential tools to succeed intheir roles.
Designed for fresh graduates, this training campcombines intensive training, one-on-one mentorship,and hands-on projects. It bridges the gap betweenuniversities and the workplace, building a strongfoundation in corporate culture, organizationalstructure, and essential work skills—nurturing themas future leaders within the Company.
We have established a robust job grade management system and implemented a job-person match initiative. This dual-pathframework enables employees to develop along both management and technical/professional tracks, with clearly definedladders (promotion levels), routes (career trajectories), and benchmarks (evaluation criteria). The goal is to break throughthe "career ceiling" for core professionals, reward high performers based on value creation, and continuously optimizecompensation mechanisms to retain and motivate talents. Purcotton has also upgraded its dual-path system by refiningqualification standards and issuing aTalent Development Manual, which guides employees through each stage of theircareer journey.
We have established a standardized talent evaluation framework. Each year, we conduct a company-wide talent reviewaligned with strategic goals. Employees are evaluated across two key dimensions: performance and potential. Theevaluation uses a 9-box talent matrix to classify and map different employee profiles, along with tailored developmentrecommendations and management strategies. The outcomes of this review inform a wide range of talent decisions,including selection, upskilling, promotions, salary adjustments, job rotations, and succession planning. In the meantime,the talent evaluation system has been integrated into our digital talent management platform, empowering workforcemanagement with information technology.
We have built a well-defined promotion and advancement management system. Every year, we conduct structuredpromotion reviews, with advancement decisions based on business performance as the primary driver, supported byevaluations of employees' qualifications and value contributions. Employees progress step by step, grade by grade, whichmotivates continuous improvement and high performance. We also offer timely and opportunity-based recognition for high-potential and dual “A-grade” employees, helping outstanding talent stand out and fast-track their career development.
We have developed a qualification framework based on capability and behavioral standards to ensure systematic talentmanagement. This system supports the vertical development of technical professionals and enables flexible movementbetween management and technical roles. In 2024, Purcotton launched a Position Qualification Standards Upgrade Project,drawing on internal and external best practices to empower teams. This initiative is designed to help more employees growinto solution-oriented talents with both technical depth and business acumen.
·Employee growth
·Employee training
Orientation training
Spring seedling training camp
Qualification standards
Competence
Channel and path
Professional Code of Conduct 1Professional Code of Conduct N
Corporate code of conduct Knowledge and skills(Knowledge list, and skill List)
Core competency
Organizational contribution (channel capability)
(Knowledge sharing + talent cultivation)
Basic conditions(Experience, length of service,performance, and key events)
Platform building(Product reuse + institutionalprocess building)
BehaviorWinner Group’sQualification Standards
WINLeadership
WINPotentialWilling huge
InnovatingstrategyGood at managementGood at decision-making
Solid professional foundationWell-trained management
Career passion
Numerousmethods
Talent view: High quality, highlyeducated, high performance, andhigh return
WiseAnalytical ability[depth]Broad perspective[breadth]
Never-stopRapid learning [performance]Internal drive [intrinsic]
Self-awareness[self]Interpersonalunderstanding[others]Interpersonalinsight
Core values: Hard work, innovation, self-criticism, and
sustainable development
Leadership WIN
Willing hugeWiseInnovating strategyInterpersonal InsightNever-stopNumerous methodsPotential WIN
New hiretraining
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Winner Medical Co., Ltd. ESG Report 2024Sound Governance
Solid Foundation
Quality ProductsHealthy Life
Low-Carbon Development
Green Future
Shared ProsperityThriving Communities
“Leadership Win” Program
Specialized Training Programs
High Personal Quality
High Compensation
High Academic Qualifications
KPIsUnit2024Total workforce/14,811By gender
Male/4,634Female/10,177By age group
Under 30/2,37930-50/10,980Over 50/1,452By education background
High school or below/10,072Associate degree/2,332Bachelor’s degree/2,145Master’s degree or above/
Training coverage rate
Winner Medical
(excl. Longterm Medical and GRI)
%
Purcotton%
Longterm Medical%
GRI%
95.64
Training hours for allemployees
Winner Medical
(excl. Longterm Medical and GRI)
hours32,800Purcottonhours18,543Longterm Medicalhours2,074GRIhours34,419Average duration of
employee training
Winner Medical
(excl. Longterm Medical and GRI)
hours
5.84
Purcottonhours
4.86
Longterm Medicalhours
3.00
GRIhours17,34Percentage of employeesreceiving regularperformance and careerdevelopment appraisals
Winner Medical
(excl. Longterm Medical and GRI)
%
Purcotton%
Longterm Medical%
GRI%
30.52
Employee turnover rate
Winner Medical
(excl. Longterm Medical and GRI)
%
29.47
Purcotton%
30.90
Longterm Medical%
0.03
GRI%
26.54
ManagementTraining
ProfessionalTalentTraining
Excellenceteam leadertraining campFlagship storemanagerprogramStrategicsupply chaintrainingprogram
To build future-ready leadership, we launched the“Leadership Win” Program, designed specifically formanagers. The program integrates internal training, expert-led workshops, and action learning projects, all groundedin real-world business scenarios. Course modules coverleadership, people management, marketing, supply chain,finance, and strategy execution, empowering managerswith both operational know-how and strategic thinking. Itaims to develop a capable, well-trained leadership teamwith solid expertise, strong execution, and the agility todrive results.
To strengthen functional capabilities across departments, we provide targeted training programsdesigned around each team’s specific needs. Through in-house sessions and expert lectures, wefocus on closing skill gaps, strengthening core capabilities, and building elite, professional teamsthat support refined business growth.
This program supports plant leaders through a mix of classroom training, on-site simulations,mentorship, and best practice sharing. It focuses on areas such as on-site management, teamcollaboration, communication, and production efficiency. The goal is to build a high-performingfrontline leadership team that ensures efficient, stable plant operations.To build a talent pipeline for regional manager roles, we identify high-potential store managers andoffer them role-based learning assignments. Participants take on flagship store manager responsibilitiesin simulated environments, mentored by experienced senior or mid-level regional managers. Throughproject rotations, focused training, and on-the-job coaching, graduates of the program earn eligibilityto join our regional manager talent pool.This program targets colleagues across supply chain, operations, product merchandising, planning,R&D, sourcing, quality, and plant production planning teams. It offers a structured curriculumbuilt around four pillars: commodity planning, procurement and production management suppliercollaboration, and quality management. By deepening supply chain knowledge across departments,we’re equipping teams to elevate the Company’s planning and execution capabilities.
Investment in the “LeadershipWin” program
Participants covered
Key performance 2024
Winner E-Academy: Our online learning hub
We have developed Winner E-Academy, a digital learning platform offering a wide range of on-demand courses. Topics spanmarketing, product knowledge, general skills, and corporate culture. Employees can learn anytime, anywhere on their own.
We value individuals with outstandingcharacter and professional integrity.These qualities form the foundation ofall talent development.
High Performance
We emphasize value creation, aligningtalent evaluation with outcome-orientedgoals.
We embrace a “co-entrepreneur” talent developmentphilosophy. We strive for win-win growth betweenindividuals and the organization by offering competitivecompensation, equity incentives, and clear careerpathways, ensuring both material and emotionalrewards for top contributors.
We seek people with strong educational backgroundsand exceptional learning abilities—those who canquickly master domain expertise and apply it withagility and depth.
Metrics and targets
Talent cultivationgoal – the “Four-Highs” Talent
·
the “FourHighs” talent
model
·Metrics
152,000RMB
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Quality Products
Healthy Life
Low-Carbon DevelopmentGreen Future
Shared ProsperityThriving Communities
Team 1LeaderChongyangWinner
Team 2LeaderWuhanWinner
Team 3LeaderHuanggang
Medical
Team 4LeaderHuanggangPurcotton
Team 5LeaderWinnerPingan
Team 6LeaderJingmenWinner
Team 7LeaderTianmenWinner
Team 8LeaderJingmenWinner
Team 9LeaderShenzhenWinner
Team 10LeaderGuilinLatex
Team 11LeaderJiayuWinner
Team 12LeaderYichangWinner
Implementation of four-color tiered safety control
Implementation the mechanism of internal hazard reporting and reward
Organizational structure for work safety management
Securing Occupational Health and SafetyOnly with a strong commitment to work safety can Winner Group go further and create greater value for society, shareholders,customers, and employees. We place employee safety and health at the core of our daily management, striving to establish andmaintain a risk- controlled, safe, and healthy work environment.
In term of governance structure, Winner Group has established a well-defined organizational structure for work safety to ensureclear responsibilities and effective management. The Company’s Chairman serves as the Director of the Work Safety ManagementCommittee ( the "Safety Committee" for short), under which a Work Safety Management Office has been set up. Additionally, eachproduction department has its own work safety team.In terms of mechanisms, particularly regarding work safety, we have established a series of internal management systems,including theResponsibility System for Work Safety,System Of Work Safety Meeting,Safety Education and Training System, andSafety Hazard Investigation and Handling Regulations. These policies ensure that all aspects of work safety are carried out in anorderly manner. Regarding occupational health, we have implemented theOccupational Health Management Systemto safeguardemployees from occupational hazards during their work. This system aims to prevent occupational diseases and protect the legalrights of workers affected by such conditions.
Governance
Winner Group places great emphasis on work safety and employees’ occupational health, striving to build a comprehensive safetymanagement system. We have established a safety responsibility system and internal management regulations that cover allemployees, ensuring comprehensive occupational health protection and effectively safeguarding employees' physical and mentalwell-being.
The Company prioritizes the implementation of fundamental safetywork by improving work safety management, conducting regularinspections and drills, and actively promoting a safety culture. Theseefforts ensure a solid foundation for work safety and continuouslyenhance our intrinsic safety.
The Company classifies safety risks into four levels, ranging from highest to lowest: critical risk, significant risk, moderate risk, andlow risk. These are represented by red, orange, yellow, and blue, respectively. By implementing a visual risk management system,we ensure a tiered risk control of work safety while enhancing employees' awareness and understanding of potential hazards.The Company has established a comprehensive mechanism of internal reporting and reward for identifying safety hazards withinproduction and operational units. Employees are encouraged to report safety hazards through the "Safety Hazard Snapshot"initiative by scanning a WeChat QR code. The Work Safety Management Office monitors and follows up on these reports daily,ensuring a closed-loop process of rectification. Employees who report hazards receive rewards, encouraging frontline staff to getinvolved. Additionally, we conduct both regular and ad-hoc inspections to eliminate potential hazards, enforce safety regulations,and promptly identify and rectify work safety issues, ensuring a safe and secure workplace.
Strategy and management measures
Full compliance with work safety requirements
Honor
Winner Medical (Jiayu) won first place inboth the Fire Emergency Comprehensive
Handling Drill and the CorporateFirefighting Skills Competition( forthe team category) at the Jiayu
Development Zone.
·Work safety management
Work Safety Management
Committee
Work Safety Management
OfficeVolunteer Fire Brigade
Director: Chairman
Director
Committee Member
Member
Deputy Committee Member
Member
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Winner Medical Co., Ltd. ESG Report 2024Sound GovernanceSolid Foundation
Quality ProductsHealthy Life
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Winner Group‘s safety culture
Specialized work safety training
·Metrics
KPIsUnit2024
Investment in work safetyRMB million
1.6
Number of safety training sessions conducted/
Number of safety training participantsheadcount7,664Safety training coverage rate%
99.80
Number of safety drills/
Number of major work safety accidents/
Number of administrative penalties due to work safety issues/
Work-related fatalities/
·Safety inspection and drills
·Safety culture development
·Prevention of occupational diseases
·Work safety management goals
The Work Safety Management Office of each subsidiary conducts weekly safety hazard inspections, generates safety hazardreports, and ensures a closed-loop follow-up process. Our Safety Committee carries out major safety hazard inspectionsevery quarter, evaluating subsidiaries' safety management through work safety competitions. Additionally, emergency drills arecarried out every six months, and during the annual Work Safety Month, employees are encouraged to participate in knowledgecompetitions to promote safety awareness.
We are committed to promoting a safety culture centered on "work safety and healthy development" by establishing a work safetyeducation and training management mechanism. Each quarter, we develop specialized safety training materials to ensure effectiveimplementation of safety education. By fostering full employee participation, we enhance safety awareness, prevent accidents, andmitigate occupational hazards.
The Company closely monitors the distribution, concentration, and intensity of occupational hazards, as well as the occupationalhealth status of workers in operational environments. We diligently fulfill our primary responsibility for occupational diseaseprevention by implementing effective protective measures. For workplaces involving occupational hazards, we conduct annualhealth check-ups for employees and monitor working environments. The results are reported to the occupational diseasemonitoring system.
Winner Group fully implements the policy of "safety first, prevention foremost" and further enforces the safety managementresponsibility system, following the principle of "whoever is in charge is responsible." By strengthening our work safetymanagement, we effectively reduce and minimize workplace injuries, ensuring the safety of our employees and the protection ofcompany assets.
Case
Case
On June 19, 2024, the " Fire Safety Training and Fire Drillfor Industrial and Trade Enterprises in Jiayu County" wassuccessfully held. The event was organized by the JiayuCounty Emergency Management Bureau, co-organizedby the Jiayu County Fire and Rescue Brigade, and hostedby Winner Medical (Jiayu), with a total of 500 participants.The event enhanced the fire prevention and firefightingcapabilities of local industrial and trade enterprises whilefostering a social atmosphere of “Safety for Everyone,Emergency Preparedness for All – Unblocking EmergencyEscape Routes.” Additionally, it strengthened the safetyawareness and emergency response capabilities of WinnerMedical (Jiayu) employees.
In July 2024, in partnership with Shenbei AIER Eye Hospital, our Party Committee launched the “Party Leadership inAction: Caring for Your Vision” free eye clinic. During the event, professional medical staff provided our employeeswith comprehensive eye examinations, including vision tests, computerized optometry, slit lamp examinations,presbyopia assessments, and dry eye SPA treatments. Additionally, they offered expert consultations and practicalhealth advice to enhance employees' eye care awareness.
Winner Medical (Jiayu) hosts fire safetytraining and fire drill for industrial andtrade enterprises in Jiayu County
Collaboration with Shenbei AIER Eye Hospital for free eye clinic
The Company strictly complies with theLaw on Work Safety, theLaw onPrevention and Control of Occupational Diseases, and other relevant Chineselaws and regulations. Upholding the principle of “prevention first, combinationof control and treatment,” we prioritize employees' physical and mental well-being and are committed to creating a safe and healthy work environment.
Ensuring occupational health
Metrics and targets
"Fire Safety Training and Fire Drill for Industrialand Trade Enterprises in Jiayu County"
Honor
Winner Group, Shenzhen Winner,Chongyang Winner, Huanggang Winner,Jiayu Winner, Tianmen Winner andWuhan Winner have all obtained ISO45001 occupational health and safetymanagement system certification
8281
Winner Medical Co., Ltd. ESG Report 2024
KPIsUnit202220232024
Shareholders’ Meetings/
Board Meetings/6810Meetings of the Supervisory Board/3610Number of directors/
Number of female directors/
Number of independent directors/
KPIsUnit202220232024Investment in energy conservation &environmental protection
RMB million
19.7321.278.33
Energy ConsumptionDirect energy consumptionton of standard coal18,767.2716,499.1118,079.26Natural gasm?14,510,70312,832,41714,073,058Dieselliters129,329105,39099,500Gasolineliters32,13729,45226,315Biomasston2,0171,6281,810Indirect energy consumptionton of standard coal36,811.4533,282.5137,020.01
Purchased electricitykWh173,516,984167,811,884185,465,574
Purchased steamGJ425,897.86344,770.12387,607.66
New waterton3,711,4533,479,5064,512,313Total energy consumptionton of standard coal55,578.7249,781.6255,099.27Energy consumption intensity
ton of standard coal/RMB 10,000 of revenue
0.080.120.12Clean Energy UseClean energy consumptionton of standard coal18,570.9316,335.6317,926.50Percentage of clean energy in total
energy consumption
%33.5 32.8 32.5Greenhouse Gas (GHG) Management
Scope 1 GHG emissionstCO
e44,374.42 37,185.84 32,222.54Scope 2 GHG emissionstCO
e140,960.97 126,718.15 181,006.56Scope 3 GHG emissionstCO
e//1,014,392.14Total GHG emissionstCO
e185,335.38 163,903.99 1,227,621.24
Responsibility Performance Indicators
Outlook
Governance
EnvironmentalAs the new year begins, everything awakens withrenewed vitality. In 2025, Winner Group will continueto uphold our core business principles—qualityover profit, brand over speed, and social value overcorporate value—while steadfastly observing our brandethics: integrity in operations, respect for consumers,fair competition, social responsibility, protectionof intellectual property rights, and continuousimprovement. We will deepen our focus on bothmedical and consumer segments, stay committed tohealthy competition and long-termism, and delivermore comfortable and healthier products to globalconsumers.On the business development front, we will remainfirmly committed to our strategic pillars: ProductLeadership, Operational Excellence, Global Vision. Inthe field of professional medical care, we will continueto cultivate expertise, pursue breakthroughs in frontiermedicine, and lead in the development of high-endmedical materials in China. In terms of consumerproducts, we’ll harness ever-evolving technologies tofurther demonstrate the unmatched advantages ofcotton over all other fibers—pushing forward our visionof “Purcotton changes the world.” Concerning theglobal landscape, we will strengthen collaborations withinternational partners, and work together to addresschallenges across the value chain, paving the way formutual benefits and shared success.In terms of sound governance, we deeply practicethe ethical code of honesty and integrity in business,provide true and accurate information about ourproducts and services, consolidate consumer trust,and build the cornerstone of our brand's long-termdevelopment. We adhere to healthy competition andlong-termism, promote the benign development of themarket with healthy business behavior, and respectintellectual property rights to create a good ecologythat encourages innovation. We respect the rights and
needs of consumers and protect their privacy andpersonal information security. We continuously improveour products and services, meet the changing needsand expectations of consumers with innovation, andstrive to provide consumers with personalized servicesand solutions.On the environmental protection front, we will stay trueto our commitment to environmental responsibility andsustainable development. We will drive green productdevelopment and respond to China’s carbon peakingand neutrality goals through enhanced environmentalmanagement, resource optimization, clean production,and full product life cycle management. Togetherwith our upstream and downstream partners, we aimto accelerate the green transformation of the cottonindustry and contribute to a healthier planet and aharmonious coexistence between humans and nature.In terms of social responsibility, we will continue totake responsibility for the well-being of our peopleand communities. We will further invest in employeedevelopment and benefits, enhance workplaceconditions and career growth opportunities, and boostoverall employee satisfaction. We will strengthenpartnerships with healthcare institutions and communityorganizations to promote health literacy and improveaccess to healthcare. We’ll also deepen our collaborationwith governments, NGOs, and public welfare groups todrive social impact and help build a more harmonioussociety.Amidst strong winds and rising tides, we are settingsail with purpose. Looking ahead, and standing at anew starting point, Winner Group will remain trueto its mission, pushing forward with resilience anddetermination. Fueled by innovation, grounded inquality, and driven by service, we will continue to pursueexcellence and contribute to the long-term success ofboth our company and the broader society.
8384
KPIsUnit202220232024GHG emissions per unit of revenuetCO
e/ RMB 10,000
0.28 0.40 1.36Water Resource ManagementTotal water usageton3,711,4533,479,5064,512,313Water resource use intensity
Ton/RMB million ofrevenue
553844973Air Emissions Management
Exhaust gas emissions10,000 m
20,05317,37528,917PM2.5ton
2.652.772.08NOxton
24.4419.6521.79SO
ton
0.360.380.49
Wastewater ManagementTotal wastewater10,000 m
313308344Chemical oxygen demandton
155.34156.28141.98Ammonia nitrogenton
5.548.858.21Packaging Materials Management
Non-renewable material consumptionton// 604.10Packaging material consumptionton//5,237.34
KPIsUnit202220232024
Total number of suppliers/1,2481,2301,352Number of Mainland China suppliers/1,2051,1911,297Number of Hong Kong, Macau, Taiwan & overseas suppliers/433955Total number of new suppliers/190171178Percentage of suppliers that have signed the Supplier Code of Conduct *%100100100Number of suppliers that have undergone social-impact assessments */351 392 431Number of suppliers that have undergone environmental-impact
assessments *
/351 392 431Number of supplier training sessions */480 491542Number of suppliers covered by training */316 324 341Percentage of suppliers covered by training *%25.3026.3225.22Note: The ESG KPIs marked with * exclude the GRI data acquired in 2024.
Environmental
Social
·Supply Chain
KPIsUnit202220232024
R&D investmentRMB million488322348
Number of R&D personnel/1,5881,2591,199Percentage of R&D staff%10.639.677.8Educational background ofR&D personnel
Bachelor’s degree/413314324Master’s degree /10293104Patents obtained in total/1,0641,3751,600Invention patents obtained in total/110140218Utility model patents obtained in total /610810939Design patents obtained in total/344425443
·Technological Innovation
KPIsUnit202220232024Total number of employees/10,47912,99714,811Employee labor contract signing rate%100100100Employee social insurance coverage rate%100100100Labor discrimination incident occurred/
·Employee
KPIsUnit202220232024
Investment in work safetyRMB million
1.551.581.60
Number of safety training sessions conducted/14948Number of safety training participantsheadcount7,5007,6007,664Safety training coverage rate%989899.80Number of safety drills/161826Number of major work safety accidents/
Number of administrative penalties due to work safety issues/
Work-related fatalities/
Employees' work-related injury (workers' compensation)
insurance coverage rate
%100100100Employees' workplace safety liability insurance coverage rate%100100100
·Occupational Health & Safety
KPIUnit202220232024
Total amount of charitable donations (including
Winner Medical and Purcotton)
RMB million
18.6017.655.48
·Public Welfare & Philanthropy
Winner Medical Co., Ltd. ESG Report 2024
8586
·
Index Table for the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)DimensionTopic
Correspondingterms
Reference
Environmental
Climate responseArticles 21 to 28Addressing Climate ChangePollutant dischargeArticle 30Environmental Impact MitigationWaste disposalArticle 31Environmental Impact MitigationEcosystem and biodiversity protectionArticle 32Environmental Impact MitigationEnvironmental compliance managementArticle 33Enhancing Environmental Management
Energy utilizationArticle 35Resource Utilization OptimizationWater resources utilizationArticle 36Resource Utilization Optimization
Circular economyArticle 37Resource Utilization Optimization
Social
Rural revitalizationArticle 39Spreading Warmth and Positive EnergySocial contributionsArticle 40Spreading Warmth and Positive EnergyInnovationArticle 42Fueling the Future with InnovationEthics of science and technologyArticle 43Ethical Standards in R&DSupply chain securityArticle 45Building a Responsible Supply ChainEqual treatment of SMEsArticle 46Building a Responsible Supply ChainProduct and service safety and qualityArticle 47Delivering Exceptional QualityData security and customer privacyArticle 48Assuring Information Security
EmployeesArticle 50
Empowering Employee DevelopmentSecuring Occupational Health and
SafetySustainability-relatedgovernance
Due diligenceArticle 52Building a Responsible Supply ChainStakeholder engagementArticle 53Stakeholder CommunicationAnti-commercial bribery and anti-
corruption
Article 55Upholding Business EthicsFair competitionArticle 56Upholding Business Ethics
Indicator Index
Winner Medical Co., Ltd. ESG Report 2024
Address: 42F, Building 2, Huilong Business Center, BeizhanCommunity Workstation, Minzhi Subdistrict, Longhua District,Shenzhen, Guangdong ProvinceTel: 0755-28138888Fax: 0755-28134588 0755-28134688Email: investor@winnermedical.comSales hotline: 400-689-2896Quality service hotline: 400-689-2898Website: www.winnermedical.cn