Brand Ambassador ofPurcottonGuo Jingjing
Winner Medical Co., Ltd.
Winner Medical Co., Ltd.
Semi-Annual Report
Brand Ambassador of Purcotton
Guo Jingjing
Important Notes, Contents, and Definitions
Section Ⅰ Important Notes, Contents, and DefinitionsThe Board of Directors, the Board of Supervisors and directors, supervisors and senior management of Winner Medical hereby guarantee thatthe statement in this Semi-annual Report is authentic, accurate and complete without false or misleading information or material omission andwill assume all the legal liabilities, individually and jointly.
Li Jianquan, the head of the Company, Fang Xiuyuan, the head of accounting work, and Zhao Yan, the head of accounting body (accountingmanager), guarantee the authenticity, accuracy, and completeness of the financial report in this semi-annual report.
All directors of the Company have personally attended the board meeting for reviewing this semi-annual report.
The forward-looking contents in this semi-annual report, such as the future development strategy and performance planning, are the goals setby the Company, which are planned matters. The achievement of the goals depends on many factors, including unexpected market change. Sothese contents are not the Company’s profit forecast for the next year, or shall it constitute a substantial commitment of the Company toinvestors and related parties. Investors and related parties should be fully aware of related risks and understand the differences among plans,forecasts, and commitments. Investors are asked to beware of investment risks!
The planned profit distribution deliberated and approved by the board of directors is as follows: taking 582,329,808 as the radix, the Companywill distribute cash dividends of 4.00 yuan (tax included) and 0 bonus share (tax included) to all shareholders for every 10 shares, and nocapital reserve will be conversed to share capital.
Contents
Section Ⅰ Important Notes, Contents, and Definitions ...... 3
Section Ⅱ Company Profile and Major Financial Indicators ...... 8
Section Ⅲ Management Discussion and Analysis ...... 13
Section Ⅳ Corporate Governance ...... 53
Section V Environmental Protection and Social Responsibility ...... 58
Section VI Important Matters ...... 70
Section Ⅶ Changes in Shares and Shareholders ...... 77
Section Ⅷ Information Related to Preferred Shares ...... 84
Section Ⅸ Information Related to Bonds ...... 85
Section Ⅹ Financial Report ...... 89
Document Catalog
(I) Financial statements containing the signatures and seals of the person in charge of the Company, the accounting head, and the person incharge of the accounting body (accounting manager).
(II) The originals of all Company documents and announcements publicly disclosed during the reporting period.
Definitions
| Term | Refers to | Definition |
Company, Winner Medical
| Company, Winner Medical | Refers to | Winner Medical Co., Ltd. |
Winner Group
| Winner Group | Refers to | Winner Group Limited, a controlling shareholder of the Company |
Purcotton
| Purcotton | Refers to | Shenzhen Purcotton Technology Co., Ltd., a wholly-owned subsidiary of the Company |
Reporting period
| Reporting period | Refers to | From January 1, 2024 to June 30, 2024 |
Company Profile and Major Financial Indicators
Section Ⅱ Company Profile and Major Financial Indicators
I. Company Profile
| Stock abbreviation | Winner Medical | Stock code | 300888 |
Stock exchange
| Stock exchange | Shenzhen Stock Exchange |
Company name in Chinese
| Company name in Chinese | Winner Medical Co., Ltd. |
Chinese abbreviation of the company (if any)
| Chinese abbreviation of the company (if any) | Winner Medical |
Company name in foreign language (if any)
| Company name in foreign language (if any) | Winner Medical Co., Ltd. |
Company short name in foreign language (if any)
| Company short name in foreign language (if any) | Winner Medical |
Legal representative of the Company
| Legal representative of the Company | Li Jianquan |
II. Contact Information
| Secretary to the Board of Directors | Securities affairs representative |
Name
| Name | Chen Huixuan | Liu Yanxiang, Xu Jia |
Contact address
| Contact address | F42, Building 2, Huilong Business Center, Shenzhen North Railway Station Area, Minzhi Subdistrict, Longhua District, Shenzhen City | F42, Building 2, Huilong Business Center, Shenzhen North Railway Station Area, Minzhi Subdistrict, Longhua District, Shenzhen City |
Tel
| Tel | 0755-28066858 | 0755-28066858 |
| investor@winnermedical.com | investor@winnermedical.com |
III. Other Information
1. Contact Information
Whether the Company’s registered address, office address and postal code, company website and email were changed during the reportingperiod
□ Applicable √ Not applicable
There is no change in the Company’s registered address, office address and postal code, company website and email during the reportingperiod, as shown in 2023 annual report.
2. Information Disclosure and Keeping Place
Whether information disclosure and the place where the semi-annual report is kept were changed during the reporting period
□ Applicable √ Not applicable
The name and URL of the stock exchange website and media for publishing the semi-annual report, and the place where the semi-annual reportis kept were not changed during the reporting period. See the 2023 Annual Report for details.
3. Change of Registration
Whether the registration status was changed during the reporting period
□ Applicable √ Not applicable
There were no changes in the Company’s registration during the reporting period. See the 2023 Annual Report for details.
4. Other Relevant Information
Whether other relevant information was changed during the reporting period
√Applicable □ Not applicable
The Company held its 18th Meeting of the Third Board of Directors on December 19, 2023 and the 1st Extraordinary General Meeting ofShareholders in 2024 on January 8, 2024. During these meetings, the Board approved the Proposal on the Repurchase and Cancellation ofRemaining Shares in the Special Securities Account, as well as the Proposal on the Amendment of the Articles of Association of the Companyand Change of Business Registration. Specifically, the Company reallocated 6,094,659 shares remaining in the repurchase account - afterexcluding the Phase I Employee Stock Purchase Plan - (including the reserved portion) from the original purpose of “Supporting EmployeeStock Purchase or Equity Incentives” to “Reducing the Company’s Registered Capital Through Cancellation”. Following this cancellation, thetotal share capital of the Company decreased from 594,387,367 shares to 588,292,708 shares. For more details, please refer to theAnnouncement on the Notification to Creditors on the Cancellation of the Remaining Repurchased Shares and the Reduction of the RegisteredCapital (Announcement No. 2024-002), which was disclosed on the CNINF on January 8, 2024.
The Company held its 23rd Meeting of the Third Board of Directors on July 26, 2024 and the 2nd Extraordinary General Meeting ofShareholders in 2024 on August 12, 2024. During these meetings, the Board approved the Proposal on the Cancellation of the RemainingShares in the Repurchase of Dedicated Securities Accounts, as well as the Proposal on the Amendment of the Articles of Association of theCompany and Change of Business Registration. Specifically, the Company reallocated 5,962,900 shares in the repurchase account from theoriginal purpose of “Supporting Employee Stock Purchase or Equity Incentives” to “Reducing the Company’s Registered Capital ThroughCancellation”. Following this cancellation, the total share capital of the Company decreased from 588,292,708 shares to 582,329,808 shares.For more details, please refer to the Announcement on the Notification to Creditors Regarding the Cancellation of All Repurchased Shares andthe Reduction of the Registered Capital (Announcement No. 2024-050), which was disclosed on the CNINF on August 13, 2024.
IV. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□Yes √No
| Current reporting period | Same period last year | Year-on-year increase/decrease in this reporting period |
Revenue (yuan)
| Revenue (yuan) | 4,033,505,104.33 | 4,266,838,038.66 | -5.47% |
Net profits attributable to shareholders of listedcompanies (yuan)
| Net profits attributable to shareholders of listed companies (yuan) | 384,150,379.21 | 681,617,022.69 | -43.64%1* |
Net profits attributable to shareholders of thelisted company after deduction of non-recurring profits and losses (yuan)
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses (yuan) | 326,915,114.82 | 550,058,459.19 | -40.57% |
Net cash flow from operating activities (yuan)
| Net cash flow from operating activities (yuan) | 193,333,516.76 | 158,178,712.89 | 22.22%2* |
Basic EPS (yuan/share)
| Basic EPS (yuan/share) | 0.6568 | 1.1599 | -43.37% |
Diluted EPS (yuan/share)
| Diluted EPS (yuan/share) | 0.6568 | 1.1599 | -43.37% |
Weighted average return on net assets
| Weighted average return on net assets | 3.31% | 5.71% | -2.40% |
| End of the reporting period | End of the previous year | Year-on-year increase/decrease at the end of the reporting period |
Total assets (yuan)
| Total assets (yuan) | 16,568,835,512.57 | 17,112,022,449.97 | -3.17% |
Net assets attributable to shareholders of listedcompanies (yuan)
| Net assets attributable to shareholders of listed companies (yuan) | 11,431,205,386.28 | 11,533,224,328.00 | -0.88% |
Note: 1* Net profit attributable to the parent company decreased by 43.64% compared to the same period last year. The primary reasons forthis decline are: (i) revenue from infection protection products decreased from RMB 730 million in the first half of 2023 to RMB 170 millionin the first half of 2024; (ii) the gross profit margin for these products dropped from 53.3% in the first half of 2023 to 20.2% in the first half of2024.
2* Net cash flow from operating activities increased by 22.22% compared to the same period last year, mainly due to the continuousimprovement of the Company’s working capital management.
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. The Difference Between Net Profits and Net Assets in Financial Statements Disclosed According to the International AccountingStandards (IAS) and Chinese Accounting Standards Simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International Accounting Standards (IAS)and Chinese Accounting Standards during the reporting period.
2. The Difference Between Net Profits and Net Assets in Financial Statements Disclosed According to the Overseas Accounting
Standards and Chinese Accounting Standards Simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards and ChineseAccounting Standards during the reporting period.
VI. Non-Recurring Profit and Loss Items and Amount
√Applicable □ Not applicable
Unit: yuan
| Item | Amount | Description |
Profits and losses on the disposal of non-current assets (including the write-off partof the provision for asset impairment)
| Profits and losses on the disposal of non-current assets (including the write-off part of the provision for asset impairment) | -2,531,199.34 |
Government grants recognized in the current period’s profit or loss (excluding grantswhich are closely related to the Company’s regular business operations, aligned withnational policies, meeting specific criteria, and have a continuous impact on theCompany’s profit or loss)
| Government grants recognized in the current period’s profit or loss (excluding grants which are closely related to the Company’s regular business operations, aligned with national policies, meeting specific criteria, and have a continuous impact on the Company’s profit or loss) | 16,329,769.68 |
Gains and losses from changes in the fair value of financial assets and liabilities heldby non-financial corporations, and that from the disposal of financial assets andliabilities, excluding effective hedging operations related to the Company’s regularbusiness operations
| Gains and losses from changes in the fair value of financial assets and liabilities held by non-financial corporations, and that from the disposal of financial assets and liabilities, excluding effective hedging operations related to the Company’s regular business operations | 48,692,022.79 |
Income and expenditure other than those mentioned above
| Income and expenditure other than those mentioned above | 4,384,196.12 |
Less: Amount affected by income tax
| Less: Amount affected by income tax | 10,326,267.54 |
Amount of minority shareholders’ equity affected (after tax)
| Amount of minority shareholders’ equity affected (after tax) | -686,742.68 |
Total
| Total | 57,235,264.39 |
Other profit and loss items that are consistent with the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
There was no other profit and loss items that are consistent with the definition of non-recurring profit and loss.
Explanation on defining the non-recurring profit and loss items enumerated in the Interpretative Announcement No. 1 on InformationDisclosure of Public Securities Issuing Companies - Non-recurring Profits and Losses as recurring profit and loss items
□ Applicable √ Not applicable
No definition of non-recurrent profit and loss items enumerated in the “Interpretative Announcement No. 1 on Information Disclosure of PublicSecurities Issuing Companies - Non-recurrent Profits and Losses” as recurring profit and loss items during the reporting period.
Management Discussion and Analysis
Global spokesperson for PurcottonHome Textiles and Home Apparel
Zhao Liying
Section Ⅲ Management Discussion and Analysis
I. Main Business of the Company during Reporting Period
Winner Medical is a health enterprise that develops both medical and consumption products under its brands of “Winner” and “Purcotton”.The Company has consistently adhered to the core operating principles of “quality over profit, brand over speed, and social value over corporatevalue”. With the evolution of domestic and international markets, the Company has transformed from a sole manufacturer of medicalconsumables into a diverse enterprise. It now includes traditional wound care and dressings, advanced wound care, operating room consumables,wet and dry cotton tissues, sanitary napkins, as well as infant and children’s apparel and products, demonstrating its commitment to the healthand wellness sectors.
1. Medical Consumables Section
Winner Medical is a benchmarking enterprise in the domestic medical consumables industry. Its primary product lines include traditionalwound care and wound dressings, advanced wound care, operating room consumables, infection protection, and health and personal care.
The Company is one of the earliest medical consumables enterprises in China to establish a full industrial chain covering cotton procurement,R&D, production, and direct export. The Company’s products have received CE certification from the European Union, FDA approval fromthe United States, and certification from Japan’s Ministry of Health. This has enabled us to export to countries throughout Europe, the U.S.,and Japan. In 2005, “Winner” brand entered the domestic hospital and drugstore market. With its excellent product quality and service, WinnerMedical gradually established a good brand and reputation in domestic hospitals and drugstores. Since the outbreak of public health incident,“Winner” epidemic prevention products have made their way into both hospitals and the civilian market. Their commitment to not raisingprices, coupled with high quality of products, has earned widespread praise both at home and abroad, from governments entities and the publicalike. As a result, its brand reputation and popularity have significantly increased.
Winner Medical prioritizes market demand by staying tuned to clinical and end-user needs. By leveraging R&D along with innovation as thedriving force, the Company continually improves its product portfolio. Its business scope extends from sales of single wound care productssuch as cotton gauze to sales of integrated solutions of wound care, infection protection, and health and personal care products. Disposableoperating room consumables can reduce nosocomial infection more effectively than reusable medical products. With increasing emphasis onnosocomial infection by the state and hospitals, as well as residents’ attention to personal health environment, disposable operating roomconsumables are gradually accepted by the domestic market. Winner Medical’s medical dressing product line has been expanded fromtraditional dressing products mainly focusing on gauze products to high-end wound dressing products, such as silica gel foam dressing,hydrocolloid dressing, super absorbent pad, negative pressure drainage products, etc., which are mainly applied to chronic wound healingscenes such as diabetes, large-area burns and wounds. The ODM and import substitution space is huge. The Company’s technical level in thefield of advanced wound dressings has been in the forefront of the industry, and is expected to become the core products for the developmentof Winner Medical.
Traditional wound care andwound dressing productsAdvanced wound caredressing products
Advanced wound caredressing productsOperating roomconsumables
Operating roomconsumables
Infection protection
Health & personal care
Other products
Medical cotton, gauze, bandages, etc.
Silicone dressings, alginate dressings, superabsorbent
dressings etc.
Surgical gloves, surgical packs, surgical gowns, etc.Masks, protective clothing, isolation gowns, etc.
Oral and nasal cavity, medical beauty, personal care,
nursing care, etc.
Injection and puncture products, test kits, etc.
Wet and dry cotton tissues
Sanitary napkins
Other non-woven productsBaby clothing and supplies
Baby clothing and supplies
Adult apparelOther woven products
Cotton tissues, wet tissues etc.Sanitary napkins, disposable period panties etc.Facial mask, makeup cotton, cotton diapers etc.Baby’s leisure wear, bath towels and quilts etc.Adult’s leisure wear, outing costume, underwear etc.Bedding, toiletries, etc.
Winner Medical
Purcotton
Medical consumables
Healthy consumergoods
2. Healthy Consumer Goods Section
Purcotton originated from the development of pure cotton spunlace non-woven fabric, positioning itself as a brand pursuing “medicine closeto life, Purcotton care for health”. Its core competitive advantage combines “Medical background, Purcotton philosophy, Quality in our DNA”,making it a health-centric lifestyle brand. The product lineup includes wet and dry cotton tissues, sanitary napkins, infant and children’s appareland products, adult apparel, and various nonwoven and woven products. Purcotton promotes a lifestyle centered around comfort, health, andenvironmental friendliness, opting for cotton instead of synthetic fibers to avoid chemical irritation. It provides comprehensive solutions forvarious everyday situations, boasts a strong reputation among users, and has established a distinct brand image in the field of consumer goodswith strong brand appeal.
In terms of products, with excellent quality control ability and technology research and development ability, the Company continues tointroduce medical grade quality consumer goods. The main raw material of the core products of Purcotton is high-quality cotton sourcedworldwide to control product quality and safety from the source. All kinds of pollution sources are strictly controlled in the production process,following the high standard of medical consumables. Disposable underwear, newborn baby clothes and other close-fitting clothing are packagedwith medical grade sterilization to further ensure the safety and environmental compatibility of the products. Purcotton products cover multipleconsumer scenarios, such as mothers and infants, children and adults, and span multiple product lines, such as high-end pure cotton tissues,female care, baby care, home textile products and apparel.
(1) Main Products and Purposes
The product categories of the medical consumables segment are divided into traditional wound care and wound dressing, high-end wounddressing, operating room consumables, infection protection, health and personal care and other products; the product categories of the healthyconsumer goods segment are divided into wet and dry cotton tissues, sanitary napkins, other nonwoven products, baby clothing and supplies,adult apparel and other textile products.
The main categories and images of some products under the Company’s medical consumables section are as follows:
| Product category | Main Purpose | Product | Image of Some Products |
Traditional wound careand wound dressingproducts
| Traditional wound care and wound dressing products | For absorbing wound exudate, dressing wounds, and sports protection | Medical cotton, gauze, bandages, etc. |
High-end wound dressingproducts
| High-end wound dressing products | For creating a moisture balance at the wound interface to optimize its benefits for wound healing, reduce the frequency of dressing replacement, and reduce secondary damage | Silicone dressings, alginate dressings, superabsorbent dressings etc. |
Operating roomconsumables
| Operating room consumables | For preventing infections in the operating room | Surgical gloves, surgical packs, surgical gowns, etc. |
Infection protection
| Infection protection | For occupational protection of medical staff and patient isolation | Masks, protective clothing, isolation gowns, gloves, foot straps, hats, etc. |
Health & personal care
| Health & personal care | For wound cleaning and disinfection, and daily health care | Oral and nasal cavity, medical beauty, personal care, nursing care, etc. |
Other products
| Other products | For health management to meet their medical needs | Injection and puncture products, test kits, etc. |
Medical sterile-grade wound care
Medical gauze sheets available in multiple specifications
Medical gauze sheets available in multiple specifications
Medical-grade ingredients ensure gentleness and
Medical-grade ingredients ensure gentleness and
safetySilicon treatment strip (1pc/box)
The main categories and images of some products under the Company’s healthy consumer goods section are as follows:
| Product Category | Product | Image of Some Products |
Wet and dry cotton tissues
| Wet and dry cotton tissues | Cotton tissues, wet tissues etc. |
Sanitary napkins
| Sanitary napkins | Sanitary napkins, disposable period panties etc. |
Other non-woven products
| Other non-woven products | Facial mask, makeup cotton, cotton diapers, disposable underwear, etc. |
Baby clothing and supplies
| Baby clothing and supplies | Baby’s leisure wear, outing costume, underwear, bath towels, handkerchiefs and quilts, etc. |
Adult apparel
| Adult apparel | Adult’s leisure wear, outing costume, underwear, footwear, etc. |
Other woven products
| Other woven products | Bedding, toiletries, etc. |
(2) Main Operating Modes
① Procurement mode
The Company promotes digital platform management and has established a robust procurement management system, procurement process,and risk control platform. Procurement is driven by planning, with procurement plans and strategies formulated in line with annual, quarterly,and monthly demands. Different modes of procurement are implemented according to the types of materials required, including strategicprocurement, bidding procurement, centralized procurement, and separate procurement, among other models. Purchasing needs are integratedwith R&D, product specifications, and quality standards to establish technical benchmarks. The purchasing strategies formulated encompassplans, supplier selection, commercial negotiations, and order allocation plans based on supplier performance evaluations. In pursuing asustainable supply chain ecosystem, our collaborative suppliers are dedicated to achieving low carbon emissions, cost-effectiveness,transparency, and social responsibility across product development, manufacturing, procurement, and other areas.
1) Responsible Purchasing
The Company mandates that purchasing requirements be generated by the demand department based on customer orders, sales plans, andproduction schedules to fulfill production and sales needs. The Group’s supply chain then devises tailored purchasing strategies for differentprocurement types, including strategic, bidding, centralized, and decentralized purchasing. For instance, strategic procurement rules areuniformly applied to formulate purchasing strategies and plans for bulk raw materials like cotton and cotton yarn. Centralized purchasingstrategies for materials or categories conducive to group-wide adaptability and scale effects are employed. To ensure the effectiveimplementation of the Group’s procurement strategy, the Company adopts a system that visualizes the entire procurement process andfacilitates supervision and management. This includes demand assessment, sourcing, quotation, price comparison, contract signing, purchaseorder issuance and approval, receipt, warehousing, reconciliation, payment processing, etc. This ensures that the procurement process adheresstrictly to the principles of fairness, openness, and impartiality outlined in the procurement management system.
2) Procurement Control Process
The Company has established several key control points in the procurement process to ensure clear responsibilities and rigorous approvals,guaranteeing reliable product quality and stable supply. These controls include the development and approval of the annual procurement plan,procurement strategy guidelines, hierarchical classification management of purchasing, order allocation management process, comprehensivebidding management process for non-commercial groups, a price approval process, and a procurement approval process for strategic materialssuch as cotton and cotton yarn. Additionally, procurement reviews and other related steps are included in this framework. Meanwhile, bysigning the Integrity Commitment Agreement, the Company works with suppliers to resist corruption, create an open, transparent, self-disciplined, and mutual trust cooperation mechanism, advocate the procurement principle of openness, transparency, and quality priority, andcreate a sustainable supply chain ecosystem with suppliers.
3) Hierarchical Classification Management of Supply Resources
Based on the Company’s development goals and commodity planning requirements, reserve resources from at least two or more suppliers. Forcritical materials or services, we establish a framework that encourages competition among multiple suppliers, ensuring supply stability andmitigating risks. At the same time, we follow the Company’s supplier evaluation criteria to select vendors to meet our requirements, aimingfor a mutually beneficial cooperation model with suppliers. Using the supplier evaluation system and considering their overall capabilities,suppliers are regularly graded and categorized. These assessments inform the development of cooperation programs and order allocation,focusing on cost control, improving efficiency, and reducing supply risks.
4) Supplier Management Process
I Admission assessment: New suppliers undergo validation following the Supplier Admission Assessment Specification. Suppliers are evaluatedacross various dimensions, including technical capability, quality management, planning and production capabilities, and corporate socialresponsibility, through written assessments. On-site audits are conducted for all key suppliers, with additional audits for other suppliers asneeded. The Company enters into agreements such as Purchasing Framework Contract, Quality Agreement, Confidentiality Agreement,Integrity Commitment Agreement, and others with verified suppliers, establishing a list of qualified suppliers.
II Performance management: Adhere to the Supplier Performance Management System, and conduct routine performance evaluations ofsuppliers. Engage in ongoing communication with suppliers regarding their performance status, analyze reasons for any deficiencies identified,develop improvement plans, monitor the implementation of these plans, and verify their effectiveness.
III Annual review: Adhere to the Supplier Management Program to conduct yearly evaluations for key suppliers, those with significantdeviations or anomalies in the prior year, and suppliers with alterations in production sites or equipment. Issue improvement notices for anynon-compliance identified during the review process, monitor the implementation of improvements and verify their effectiveness.
IV Qualification adjustment: Following the Supplier Grading and Classification Management System and Supplier Performance ManagementSystem, as well as the results of the annual review, supplier qualifications are regularly revised. An elimination mechanism is activated forsuppliers whose improvements prove ineffective.
5) Sustainable Supply Chains
The Company keeps improving its green and sustainable development, such as cooperation with schools and hospitals. At the same time, italso aligns the upstream and downstream of the supply chain to further achieve sustainable development. For example, we have promoted theproject of product package de-plasticization; multiple categories of Purcotton products have obtained carbon footprint certification; weoptimize the product process to minimize energy usage, and upgrade the production equipment to enable energy recovery and reuse.
6) Digital Supply Chain
In 2023, the Company introduced a Supplier Relationship Management (SRM) and Supply Chain Management (SCM) supplier collaborationsystem. Additionally, enhancements were made to the Material Data Management System (MDC) and Product Lifecycle Management (PLM)data management system. The integration of various systems and modules advances digital management, significantly enhancing procurementexecution efficiency and making pricing modules more transparent. Implementing end-to-end order delivery and inbound and outboundinventory visualization management; leveraging internally developed Business Intelligence (BI) visualization tools by the IT team; integratingdemand and supply planning information data to minimize offline communication and enhance overall operational efficiency.
② Production mode
Aligned with the Company’s business strategy objectives, and directed by the Company-level S & OP sales and operation plan, we formulatemedium and long-term strategic plans and short-term production and procurement plans according to the Company’s development andcustomer demand. We streamline the information flow and decision-making process across all upstream and downstream departments throughdata integration and visualization platforms. We're continuously improving our smart manufacturing, lean production, and agile deliverycapabilities. Our goal is to strike the right balance between meeting front-end demand and ensuring timely supply and delivery. In the processof order fulfillment, we match capacity according to the characteristics of different demands and in combination with the actual supply ofhuman, machine, material, method, and environment. Through the flexible deployment of different production modes (MTO (Make to Order),MTS (Make to Store), ETO (Engineer to Order) and ATO (Assemble to Order)), we continuously improve our service level to meet customerdemands and create value for customers.
I. In the production mode of Make to Order MTO, products are produced according to the customer’s original product design; procurement isperformed according to the BOM for the accepted order. Therefore, inventory remains almost zero. For OEM customer orders, as the marketconstantly reduces the delivery cycle, it is common now to combine MTO & MTS production modes.
II. In the production mode of Make to Stock MTS, products are not customized for specific customers, and are usually delivered to differentcustomers; production plans are formulated according to market demand and existing inventory. Safe inventory is determined for such productsaccording to the production cycle and the frequency of demand to ensure that products are available when the customer places an order.
III. In the mode of Engineer to Order, specific design requirements from a single customer can be met, usually for small production lots; in theproduction process, the value mainly lies in product and packaging design work. Support for custom design is an important part of thisproduction mode. Inventory remains almost zero.
IV. In the Assemble to Order mode, the components required to produce finished products are stocked in advance. When the customer placesan order, products can be assembled quickly to meet flexible delivery demands. Common materials are stocked in advance to maintain balancebetween rapid delivery and inventory.
③ Sales mode
The Company sells products through multiple channels. The main sales channels are shown in the following figure:
④ Marketing mode
The Company is developing its products under Winner Medical and Purcotton in a coordinated way. With “caring for health and life, makinga better world” as its vision, Winner Medical takes industry-leading product technology and rigorous product quality as the cornerstone of itsbrand value, while its marketing strategies heavily rely on brand reputation and consumer word-of-mouth. Purcotton, known for its pure cottonproducts, uses distinct strategies to strengthen its brand. By integrating various promotion channels such as directly-sales stores, brandroadshows, celebrity endorsements, event sponsorship, new media, and advertising, Purcotton keeps conveying to consumers its propositionof “medicine close to life, Purcotton care for health” and its vision of “changing the world with pure cotton”. This approach not only helpsenriches the meaning of Purcotton brand but also boosts awareness and loyalty among consumers.
(3) Main Driving Factors of Performance
① Medical consumables industry and consumer goods industry will keep growing rapidly
As global healthcare improves and daily healthcare demands rise, the global medical consumables market is experiencing stable growth andlandscape changes. Concurrently, domestic public healthcare institutions are undergoing reform, driven by policies like national examinations,centralized procurement, and SPD/DRG advancements. These changes are expected to lead to consolidation and reshuffling within the medicalconsumables industry. After public health events, there’s heightened focus from the government, healthcare professionals, and consumers onemergency prevention and personal health management autonomy. Consequently, demand for family emergency and daily healthcare hassignificantly increased compared to pre-event levels. The domestic market for medical and household consumables is rapidly consolidating,providing a favorable external environment for the development of leading enterprises.
In October 2021, the CPC Central Committee and the State Council officially announced the Opinions on the complete, accurate, andcomprehensive implementation of the new development concept to achieve carbon peak and carbon neutrality. It is pointed out thatstrengthening China’s green and low-carbon technological innovation and continuously expanding green and low-carbon industries willaccelerate the formation of new drivers and sustainable growth poles of the green economy. We will significantly improve the quality andefficiency of economic and social development and provide a strong impetus to build China into a great modern socialist country in all respects.In December 2023, the Opinions on Comprehensive Promotion of Building a Beautiful China issued by the CPC Central Committee and theState Council emphasized the importance of prioritizing the construction of a beautiful China in the nation’s development and revival efforts.It underscored the strategic imperative to strengthen ecological civilization construction, and steadfastly pursue a path of civilized developmentencompassing production, prosperity, and ecological well-being. The aim is to create a picturesque homeland characterized by clear skies,verdant landscapes, and pristine water while advocating for simple, moderate, green, low-carbon, civilized, and healthy lifestyles andconsumption habits. At the same time, consumers are increasingly concerned about the environmental performance and sustainability ofproducts, and the rise of environmental protection and low carbon concepts is also driving the transformation and upgrading of the consumergoods industry.
Third-party B2C platforms, such as Tmall, JD.com and
Amazon
Medical consumables
Medical consumables
Healthy consumergoods
Domestic salesOverseas sales
E-commerceplatforms
Real stores
Online channels
Offline channels
Online channels
Offline channels
HospitalsPharmacy/convenience stores
Government and enterprise platform
Private brandOEM/ODM sales
Tmall, JD.com and other traditional e-commerce
platformsTikTok, Kuaishou and other interest e-commerce
platforms
TikTok, Kuaishou and other interest e-commerce
platformsOfficial shopping mall and Wechat miniprograms of Purcotton
Official shopping mall and Wechat miniprograms of PurcottonDirectly operated and franchised chain stores
Directly operated and franchised chain storesSupermarkets, convenience stores and beauty
stores
Supermarkets, convenience stores and beauty
storesWinner
② High-quality products and precise brand positioning enhance brand value
The Company is one of the earliest medical consumables enterprises in China to establish a complete industrial chain that covers cottonprocurement, R&D, production, and direct export. It is also among the first to implement a medical-grade quality management system in theindustry and has passed the ISO13485 Medical Devices Quality Management System Certification. Its product quality complies with theEuropean, American, Japanese, and Chinese standards. Winner Medical enjoys a high brand reputation and recognition. In May 2021, WinnerMedical was selected by the Federation of Shenzhen Industries as the “Benchmarking Enterprise in China’s Medical Consumables Sector” andat the same time recognized as an “International Renowned Brand” by the United Nations Industrial Development Organization. In December2021, “pure cotton spunlace non-woven fabrics and its products” of Winner Medical was awarded as the national single champion of themanufacturing industry. In April 2022, Winner Medical was awarded the honor of “National Pioneer Worker” by the All-China Federation ofTrade Unions. Winner Medical has expanded its business from the medical field to the consumer goods field, which in return increased thebrand value of its consumer products.
Purcotton is committed to fulfilling consumers’ demand for high-quality products which are “comfortable, healthy, and environmentallyfriendly”. Constantly winning recognition from consumers since its launch in 2009, Purcotton has rapidly grown into a top brand of maternaland child products on Tmall, and has gained greater market shares in the field of maternal and child consumer products. In October 2019,Purcotton won the reputation of “70 Brand of the 70
th
Anniversary of the Founding of New China” sponsored by CCTV. In January 2021,Purcotton was honored as one of the “Shenzhen Top Brands” by Federation of Shenzhen Industries. In April 2021, Purcotton was included inthe list of the second “Shenzhen Top 100 Brands” announced by Shenzhen Quality City Promotion Association.
In conclusion, with high brand value, the Winner Medical and Purcotton brands will help the Company enhance customer loyalty, stabilizeproduct prices, and expand its market share in the competitive market, thereby ensuring its sustainable and stable profitability.
The Company needs to comply with the disclosure requirements of the “Medical Device Business” stipulated in the No. 4 Guideline of ShenzhenStock Exchange for Self-regulatory of Listed Companies - Information Disclosure by Growth Enterprises:
The Company needs to comply with the disclosure requirements of the “Textile and Apparel Business” stipulated in the No. 3 Guideline ofShenzhen Stock Exchange for Self-regulatory of Listed Companies - Industry Information Disclosure.
II. Analysis of Core Competitiveness
1. Advantages of Business Philosophy and Corporate Culture
Winner Medical is committed to the mission of “caring for health and life, making a better world”. It has taken the company and the medicaldressing industry from modest beginnings to global presence, evolving from original equipment manufacturing to an independent brand thathas gained recognition and loyalty from both clients and consumers. After years of development, the Company remains committed to R&Dinnovation and maintaining product leadership. In the hospital sector, it provides a wide range of medical consumables, including infusion sets,gloves, advanced wound dressings, and operating room consumables. Its goal is to become a leading player in this field by offeringcomprehensive solutions through a strategy of “internal growth + external growth”. In the retail sector, the Company continuously introducesconsumers’ favorite home personal health care products, fostering a sense of health guardianship and companionship.
Guided by its vision of “changing the world with pure cotton”, Purcotton advocates a lifestyle centered around pure cotton, emphasizingcomfort, health, and environmentally friendliness in all aspects of daily life. The brand aims to convey values of “reassurance, happiness andsustainability” to consumers. Sticking to the “cotton fiber only” principle in its operation, Purcotton aims to develop recyclable and renewableresources. The company aims to gradually replace chemical fibers with natural fibers, maximizing the value and environmental benefits ofcotton fibers, while pursuing a path of low carbon, environmental friendliness and sustainable development. The visions and businessphilosophies regarding the Company’s two brands are focused on human health, environmental protection, and improving the quality of life,which are in line with humans’ sustainable development strategy.
Adhering to core business principles “quality over profit, brand over speed, social value over corporate value”, the Company consistentlydelivers superior solutions and service experiences to customers and users while actively contributing to community development, showcasingits social responsibility. By adhering to core business principles of “hard work, self-criticism, exploration and innovation, and sustainabledevelopment”, the Company consistently provides superior solutions and service experiences to customers. At the same time, it activelycontributes to community development, demonstrating its commitment to social responsibility. At the organizational level, we prioritizebuilding process-oriented structures while establishing an integrated organization to support cohesive business operations. We focus onenhancing organizational efficiency and capacity to elevate business value in the long term. Our team incentives aim to bolster marketcompetitiveness through fixed salary enhancements and the implementation of performance-based bonus-sharing systems. We incentivizebusiness ownership and growth, retaining core leaders through equity incentive plans. Regarding talent, we embrace a culture centered on theprinciples of “high-quality, high-efficiency, high-performance and high-return”, fostering an environment conducive to the rapid growth ofindividuals. We aim to remove barriers to the development of top-tier talent and continually fortify our business partner mechanism.
2. Advantages of R&D and Innovation
The silicone gel foam dressing and foam dressings successfully developed and launched by the Company have been awarded China’sregistration certificate for Class II and Class III medical devices respectively. Building on the successful research and mass production ofseveral core foundational materials, the Company has enhanced its technical framework for the second-generation high-end wet wound dressingproduct line. The silicone gel foam dressings have been upgraded to their fourth generation and successfully launched. Additionally, thehydrophilic fiber dressings have obtained CE registration in compliance with the latest EU MDR regulations, while the medical hydrogelwound dressings have achieved mass production and have been successfully launched. The Company independently developed the pure cottonspunlace non-woven fabric technology in 2005 and has built a complete technology cluster based on the technology, obtaining patent licensesin more than 30 countries and regions including the United States, Europe, and Japan. The Company focused on the development of core basicmaterials for the application of operating room consumables such as surgical gowns, isolation gowns, surgical towels and wipes. This effortaims to enhance the comfort of the products, reduce the cost of production of the products, and further enhance the market competitiveness ofthe products. The Company was invited to participate in the formulation of many national standards and industry standards, including theperformance requirements of pure cotton non-woven surgical dressings, and technical specifications for contact layer dressings and masks forchildren. In the area of production and research, since its establishment, the Company has been attaching great importance to scientific andtechnological innovation and cooperation. It has carried out industry–university–research (IUR) projects with many universities and researchinstitutes, including Hong Kong Polytechnic University, Hong Kong Research Institute of Textiles and Apparel, Wuhan Textile University,and Soochow University. In January 2022, the Company and Huazhong Agricultural University jointly established the Cotton ResearchInstitute and appointed Academician Zhang Xianlong as the Chief Cotton Scientist of Purcotton to cooperate in research and development. Theresearch institute relies on biological breeding technology to cultivate cotton strains that are exclusive to cotton, and to discover cotton strainsthat are specialized for spunlace non-woven fabrics. In June 2023, the Company and Wuhan Textile University jointly built a comprehensivetechnological innovation platform for advanced fiber materials in Hubei Province. This initiative aims to facilitate industrial incubation, andcomplete the in vitro and in vivo biological evaluation of a new series of artificial blood vessels with high patency rate early, aiming to breakthe monopoly of artificial blood vessels abroad, and promote domestic alternatives. In November 2023, the Company’s bionic artificial corneaproject was successfully designated as a major scientific and technological research project in Shenzhen, in collaboration with the SouthernUniversity of Science and Technology. Venturing into the research of high-value medical bionic implant materials and expanding theapplication fields of collagen will help the Company enhance the production capacity of its collagen production line.
In the field of consumer products, the Company has developed pure cotton tissues, pure cotton wet tissues, sanitary pads with pure cottonsurfaces, as well as disposal cleansing towels, disposable underwear and other products. As the first and major drafter, Purcotton, a wholly-owned subsidiary of the Company, led the development of national standards for soft towels (GB/T 40276-2021), which requires that the fibercomposition and content of soft towels shall be identified, and the fiber content tolerance shall comply with the provisions of GB/T 29862(implemented on December 1, 2021). In December 2021, “pure cotton spunlace non-woven fabrics and its products” of the Company wasawarded as the national single champion of the manufacturing industry. In 2023, we were involved in the establishment of a group standardfor technical requirements in carbon footprint evaluation for several products, including soft towels, sanitary napkins, and diapers. TheCompany’s core categories - cotton tissues and wet tissues, sanitary napkins and gauze products - have all been certified as green products.After three years of research and development, the Company has become an industry leader by introducing a pioneering softening technologythat eliminates the need for chemical softeners. This innovation enhances the softness of core cotton tissue products while preserving the naturalsoftness of cotton fibers, making them more eco-friendly, sustainable, and natural.
As of June 30, 2024, the Company obtained 125 patents for inventions, 792 patents for utility models, and 422 design patents in China; andobtained 29 patents for inventions and 6 patents for utility models overseas. The Company was regarded as a “Leading Enterprise inIndependent Innovation” by the Shenzhen Municipal People’s Government, and a “Shenzhen Enterprise with Intellectual Property Advantages”by the Shenzhen Administration for Market Regulation.
3. Advantages of Quality Control
Since its establishment, Winner Medical has achieved sustainable development and maintained a leading position in the industry. It isinseparable from the Company’s three core principles of “quality over profit, brand over speed, social value over corporate value”. In thiscontext, the quality policy of “Rigorous work, strict compliance with laws and regulations, and continuous improvement to win the full trustof customers” was formed and has been implemented to date. Based on this guideline, Winner Medical Group has adopted EN ISO13485:2016(ISO13485:2016), China’s Medical Device Manufacturing Quality Management Practice, the United States 21 CFR Part 820, and the EuropeanUnion MDD (DIRECTIVE 93/42/EEC), EU MDR (REGULATION (EU) 2017/745) and EU PPE (REGULATION (EU) 2016/425) ascornerstones, forming a quality management system model based on process management. Under this model, Winner Medical focuses on theresearch of product quality standards and regulatory requirements of different countries/regions, and actively passes the corresponding productregistration/certification procedures. It has obtained product access qualifications in China, EU, USA, Japan, UK, Switzerland, Russia,Australia, Malaysia, Thailand, Saudi Arabia and other countries/regions, providing domestic and foreign customers with high-quality productsand good after-sales service. At the same time, Winner Medical has been committed to building professional, reliable and comprehensiveproduct quality testing capabilities. The Shenzhen Winner Laboratory and Jingmen Winner Laboratory have been accredited by the ChinaNational Accreditation Service for Conformity Assessment (CNAS). With professional and reliable product testing capabilities, it not onlyprovides a guarantee for product quality control but also serves as a source of data for continuous product improvement.
To ensure the safety of raw materials for its products, Purcotton uses high-quality cotton from around the world to produce its core products,such as pure cotton tissue, sanitary napkins with pure cotton surface, and pure cotton wet tissues. All the workshops are managed according tothe management requirements for the workshops of medical dressings, which can help strictly control bacterial contamination and pollutionsources. With its strict quantity management control system, Purcotton can provide customers with high-quality consumer goods that are safeand environmentally friendly. Adhering to the concept of “medicine close to life, Purcotton care for health”, Purcotton not only applies qualitynatural cotton but also attaches importance to the environmentally friendly weaving and finishing process. To ensure that its products areecologically safe, no fluorescent brighteners are added. Some of its products are OEKO-TEX Standard 100 certified. Some nonwoven productshave passed the testing performed under the EU AP (2002) 1 and EC1935/2004 EU Food Contact Materials Regulation.
4. Product Advantages
(1) Medical consumables
The Company’s product categories include high-end wound dressing products, traditional wound care and wound dressing products, operatingroom consumable products, infection protection products and health & personal care products, covering application scenarios like clinical andmedical institutions and families, which can better meet clients’ needs of one-stop procurement. In addition to traditional wound care productsand wound dressing products, the Company has also developed representative high-end wet dressings like silicone foam dressings, hydrocolloiddressings, super absorbent pads and scar treatment strips for chronic wounds that are difficult to heal, which further enrich its products. For theclinical use scenarios, the Company is committed to changing from selling single products to providing customers with integrated solutions.Its infection protection products include dozens of surgical packs for various sections, such as heart and brain, abdominal cavity, urology,reproduction, facial features, and limbs. In terms of protective products, the Company has successfully developed and marketed biodegradablemasks, cotton-lined masks and other products, providing solutions for the environmental attributes of mask products and greatly enhancing thecomfort of mask products. In the field of home care, the Company provides professional products for clinical use such as medical surgicalmasks, saline cleaning pads, hydrocolloid band-aids and medical masks to consumers through portable, sterilized packages. etc., applying theseprofessional healthcare products and services in daily home care.
(2) Healthy consumer goods
The Company’s healthy consumer goods consist of nonwoven consumer goods and textile consumer goods. Nonwoven consumer productsmainly include wet and dry cotton tissues, sanitary napkins, etc.; textile consumer products mainly include baby clothing and supplies, adultapparel and other textile products. Cotton fiber has ten prominent advantages, including natural, safe, comfortable, naturally degradable, highoutput ratio, drought-resistant, salt and alkali-resistant, environmentally friendly, time-honored, and great economic and social value. TheCompany takes the lead in proposing the innovative concept of replacing chemical fibers with cotton and getting rid of chemical stimulation,aiming to provide consumers with healthy, comfortable and environmentally friendly consumer goods. Among all, cotton tissue is thepioneering product in the industry, which can partially replace household paper. Pure cotton tissues are made of degradable cotton after physicalprocessing. There is less chemical stimulation and the tissues can be reused. The tissues are more comfortable, safe, and environmentallyfriendly, so consumer acceptance of the tissues has been significantly improved. For pure cotton wet tissues and sanitary napkins with purecotton surface, cotton materials are innovatively used in the parts of these products that contact human skin to replace traditional chemical fiberand effectively reduce chemical irritation, so they are popular in the markets of baby and female consumers. Due to the excellent breathabilityand softness of gauze fabrics, the Company’s apparel and textile consumer products such as gauze children’s apparel, household apparel,bedding and bath towels are getting more popular.
5. Brand Advantages
(1) Brand advantages in the field of medical consumables
As a leading enterprise in the medical consumables sector, the Company’s core strategy revolves around “leading products with operationalexcellence”. Through global exhibitions, the Stable Academy’s sense control training courses, operating room management forums, woundtraining programs, and other initiatives, the “Winner Medical” brand has gained widespread recognition in the medical industry. Bothdomestically and internationally, customers trust the Company’s business philosophy and product quality. The Company’s medicalconsumables are sold to 110 countries, mainly developed countries and regions such as Europe, Japan and the United States, and the productsunder its brand Winner are mainly sold to developing countries and regions such as Asia, Africa, and Latin America. The Company providesservices for world-renowned medical supplying companies such as M?lnlycke, Lohmann, and PAUL HARTMANN. The products of “WinnerMedical” brands have covered all public and most private hospitals in Hong Kong.
(2) Brand advantages in the field of healthy consumer goods
Purcotton is a wholly-owned subsidiary of Winner Medical, focusing on natural cotton as its primary raw material and adheres to the principleof “quality first”. The Company is committed to continuous innovation to provide consumers with comfortable, healthy, and environmentallyfriendly all-cotton products across various categories. This commitment has garnered the recognition and trust of over 56 million members.Upholding the brand philosophy of “peace of mind, happiness, and sustainability”, Purcotton has innovatively developed three core products- 100% cotton tissues, Nice Princess sanitary napkins, and BBNice cotton diapers - starting from a single cotton flower. This initiative hasexpanded into diverse categories, including personal care, household cleaning, infant care, clothing, and lifestyle products, creating a strongidentity for “new Chinese products” that are recognized for their high quality. Purcotton has established a formidable reputation in the maternaland infant sector as well as the daily necessities market, effectively creating competitive barriers and enhancing product value.
6. Advantages of Sales Channels
(1) Advantages of online channels
In terms of online channels, the Company’s “Winner Medical” and “Purcotton” have completed the deployment of mainstream third-party e-commerce platforms, including Tmall, JD.com, Pinduoduo, Vipshop and Amazon. With the huge user traffic gathered, its sales have coveredmost online shopping consumer groups, and the sales data indicated that the sales of its products rank among the top in the relevant productcategories in major e-commerce platforms. With the attributes of “sales + social”, Purcotton’s official mall and WeChat mini-programs areimportant platforms for its product display, user interaction, and brand promotion. At the same time, Purcotton is also cooperating with newsocial retail platforms such as TikTok, Kuaishou and Xiaohongshu, which helps it open up new sales growth channels.
(2) Advantages of offline channels
In the medical consumables sector, as of the end of the first half of 2024, the Company’s products have been extensively integrated intodomestic medical institutions, reaching a network of 190,000 retail pharmacies. Our customers and distributors span over a hundred countriesand regions in the international market, including Europe, Japan, and the United States. Our business model encompasses a variety ofapproaches, such as direct sales under private brands, distribution, and OEM/ODM partnerships. Leveraging years of product leadership and astrong reputation in the industry, we have built a robust portfolio of high-quality customer assets.
In the healthy consumer goods section, as of June 30, 2024, Purcotton has opened 444 offline stores (including 84 franchisees) in more than100 mid- and high-end shopping malls in Shenzhen, Shanghai, Beijing, Guangzhou and other key cities in China. The Company integrates itsbrand concept into its store design. It hires well-known designers at home and abroad to upgrade store image and enhance consumer experiencewith an exhibition-style product display balancing both aesthetics and richness of products. It also adds an experience area to highlight productdisplay and consumer experience, which has helped increase the Company’s sales revenue and brand awareness. As for offline terminals likechain stores and supermarkets, based on Purcotton’s positioning of high-quality consumer goods, the Company mainly deploys Purcottonproducts in nationally renowned supermarket chains, high-end boutique supermarkets, leading regional supermarkets, convenience store chains,beauty stores, and offline mother and baby stores. Meanwhile, the Company has set up dedicated sales teams to cover the bulk purchase orcustomized purchase needs of corporate clients. Purcotton also strives to start overseas market layouts by cooperating with local distributors.
(3) Advantages of integration between online and offline channels
The omnichannel retail model is a newly emerging retail form that provides consumers with a consistent shopping experience by integratingphysical stores, third-party e-commerce platforms, and mobile e-commerce channels. In such a form, the convenience of online channels andthe consumer experience of offline channels can complement each other. Having a deep insight into the trend of online and offline omnichannelintegration, the Company thoroughly optimized and integrated various channels to integrate traffic and sales of offline stores, supermarkets,stores and online apps, and home delivery platforms (Meituan, daojia.jd.com, and ele.me, etc.), thereby further improving its operatingefficiency and performance. Online channels can meet offline consumers’ subsequent consumption needs while offline channels can provideonline consumers with further product information and service experience. Traffic flow can be directed between the two kinds of channels, soonline and offline traffic can be effectively obtained. As of June 30, 2024, there were more than 56 million of domain-wide Purcotton users,including over 29 million registered members of its private platforms (14 million store registered members, and over 15 million registeredmembers of its official website and apps).
7. Advantages of Full Industrial Chain
Adhering to the business philosophy of “quality over profit”, the Company constantly improves its product quality, and the ability of cost anddelivery management, building a full industrial chain with advantages from R&D, production, and sales. With eleven manufacturingbranches/subsidiaries, the Company distributes a wide range of high-quality medical consumables and healthy consumer goods worldwideeach year. Among them, Winner Medical (Jingmen), established in 1995, covers an area of 67,000 square meters and is the primary site ofPurcotton baby products, clothing, and medical abdominal pads. Winner Medical (Yichang), established in 1999, operates with 137 advancedair-jet looms and serves as the primary production base for raw materials. Winner Medical (Tianmen), founded in 2000 and spanning an areaof 150,000 square meters, specializes in producing pure cotton spunlace non-woven fabrics, cotton soft towels, medical dressings, and medicalprotection products. It serves as a key domestic production base for pure cotton spunlace non-woven fabrics and medical gauze. Established in2001, Winner Medical (Jiayu) covers an area of 93,000 square meters and owns disposable travel, cleaning and disinfecting and beauty careproduct series based on cotton. Winner Medical (Chongyang) was established in 2001 and covers an area of 140,000 square meters, and is themain force in the production of gauze wound dressings and disposable surgical combination kits, etc. Winner Medical (Huanggang),established in 2005 and covering an area of 550,000 square meters, is the primary site for the production of pure cotton spunlace non-wovenfabric, cotton tissues, sanitary napkins and masks, and advanced dressing products. Established in 2017, Winner Medical (Wuhan) covers acombined area of approximately 467,000 square meters in Phase I and Phase II, introducing electron beam sterilization and internationalmodern cotton spunlace production lines. In January 2022, the Company acquired an industrial land of nearly 15,000 square meters located inGuanlan Street, Longhua District. In the future, the land will be built into an industrial base for medical biological and infection controlprotection in the Guangdong-Hong Kong-Macao Greater Bay Area, which will be used for scientific research innovation and industrialproduction of medical biology, high-end medical dressings and medical infection control protection products. In 2022, the Company acquiredthree companies, i.e. Longterm Medical, Winner Guilin, and Winner Medical (Hunan), to solidify the key foundation for building the capabilityof a one-stop medical consumables solution. Through continuous construction and improvement, the daily management system within thefactory was optimized through lean management, standardization, automation, digitalization and greening. In the future, the Company willcontinue to combine the construction of smart factories, boldly explore and practice in the areas of intelligent manufacturing and intelligentlogistics, and gradually realize the excellence of smart manufacturing.
III. Analysis of Main Business
1. Business Analysis
Winner Medical focuses on two main sectors: medical consumables and healthy consumer goods. Having shaken off the impact of the publichealth emergencies, we envision 2024 as the dawn of a new era for Winner Medical. Guided by our three core operational principles -prioritizing quality over profit, brand over speed, and social value over corporate value - we remain committed to our strategic directive of“leading products with operational excellence”. This approach allows the company to realign itself on a path of normalized growth and upwardtrajectory.
Due to the impact of the high base brought by infection protection products (RMB 620 million) in the first quarter of last year, the Company’srevenue in the first half of 2024 was RMB 4.03 billion, down by 5.5%; net profit attributable to shareholders of listed companies was RMB380 million, and net profit after extraordinary gains and losses were RMB 330 million, down by 43.6% and 40.6%, respectively. The publichealth events had almost no impact on the Company’s revenue base since the second half of 2024. The revenue for the second quarterreached RMB 2.12 billion, reflecting an 11.0% year-on-year increase, indicating that revenue is expected to enter a positive growthcycle.
(1) Medical consumables business: the effects of the high base are gradually diminishing, and the development of the core categories isaccelerating
The medical consumables business saw rapid growth during the public health crisis, and after it ended, the Company underwent a series ofsignificant adjustments in 2023. These included strengthening its product mix, managing its inventory of infection protection products, andrecruiting talent in key areas. Compared to 2019, the Company’s medical consumables business has reached new heights in product variety,distribution capabilities, and brand recognition. Our medical business strategy for 2024 is clearly defined and executed decisively based onthis solid foundation. We are steadily progressing along this established strategy, with positive trends in operational development.
In the first half of 2024, the medical sector generated a revenue of RMB 1.72 billion, marking a year-on-year decline of 20.9%, and accountingfor 43% of the Company’s overall revenue. In the second quarter alone, revenue reached RMB 860 million, representing a year-on-yearincrease of 6.6%, reversing the quarterly revenue growth rate. Excluding the fluctuation in infection protection products, the conventionalmedical consumables business reported a revenue of RMB 1.55 billion in the first half of the year, marking a 7.5% year-on-year increase.Overall, the development remains stable and positive. Among them, the development of the core category accelerated: advanced dressing andhealth personal care business achieved revenue of RMB 380 million and RMB 180 million respectively in the first half of the year, up by 34.1%and 56.2% respectively, demonstrating positive growth momentum. Innovative R&D drives product development. By leveraging variousmarket opportunities in advanced dressings, the Company plans to increase investment in both R&D and marketing. This approach aims toenhance the quality and productivity of advanced dressings, positioning us to lead industry advancements and expand our presence on theinternational stage. As of the end of the reporting period, we hold 873 patents in the medical consumables segment and 388 medical productregistrations (including 25 registrations of Category III medical products).
In terms of channels, in the first half of 2024, the Company continued to enhance its marketing initiatives through various means and activelyexpanded its marketing channels. Besides, the Company has moved past the impacte of public health events, and its medical business channelshave returned to the stable income structure. During the reporting period, foreign sales channels generated a revenue of RMB 790 million,marking a 14.1% increase year-on-year. This accounted for 46% of the total income of the medical sector, demonstrating Winner Medical’sstrong foothold in the international market. Domestic hospital channels have steadily expanded, and the C-end business, especially cross-bordere-commerce, has made a breakthrough: by the end of the reporting period, the Company has obtained nearly 17 million followers on thedomestic e-commerce platform, built a healthcare category matrix, and seized the new development trend of medical consumer goods. TheCompany has been gained access to nearly 190,000 domestic leading offline pharmacies, and continues to lead in the ranking of core singleitems on the cross-border e-commerce platform (Amazon).
(2) Healthy consumer goods business: Pure cotton products build differentiation and core popular products lead to growth
In recent years, the consumer goods sector has proven resilient, achieving growth in every performance period. Purcotton has consistentlystrengthened its internal capabilities, maintaining a leading market share in key product categories, improving channel management, expandingits membership base, and enhancing brand perception. As we move into 2024, the Company is dedicated to continuous improvement. We focuson strategic product offerings, elevating our core rankings through research and development innovations and integrated marketing. On thedistribution side, we plan to optimize and accelerate our brick-and-mortar store expansions while increasing our presence online and enhancingoperational capabilities. To boost profitability, Purcotton is actively improving margins through new product iterations, controlled discounting,cost reduction strategies, and refined operational management. In the first half of 2024, Purcotton realized a revenue of RMB 2.28 billion, anincrease of 10.6% year-on-year, accounting for 57% of the Company’s overall revenue; of which the second quarter realized a revenue ofRMB 1.24 billion, an increase of 13.8% year-on-year, and the overall development maintains a strong upward momentum.
In terms of products, Purcotton tries to build a differentiated product matrix around “one cotton, one fiber”. During the reporting period,nonwoven products and woven products contributed revenue of RMB 1.19 billion and RMB 1.09 billion, respectively, with respective year-on-year increases of 14.8% and 6.3%. The Company has enhanced communication with consumers, effectively promoted the benefits of cottonsoft towels, and expanded new product use scenarios. In the first half of the year, sales of our core products—dry and wet cotton tissues—drove significant category growth, achieving a revenue of RMB 680 million, a 24.8% year-on-year increase. Operating revenues forsanitary napkins and adult apparel reached RMB 320 million and RMB 440 million, representing year-on-year growth of 7.6% and 8.9%,respectively. Additionally, wet and dry cotton tissues and sanitary napkins experienced year-over-year growth of 28% and 16% in the secondquarter. By the end of the reporting period, Purcotton had accumulated 501 patents of various types through R&D and innovation, enrichingproduct categories and improving product competitiveness.
In terms of channels, Purcotton has diversified online and offline channels, including traditional third-party platforms such as Tmall, JD.com,Vipshop, e-commerce platforms such as TikTok, Xiaohongshu and other interest-driven e-commerce platforms, as well as its official websiteand applets and other self-owned platforms. In terms of the offline channel, the strategy involves direct encryption of offline presence in firstand second-tier cities, while focusing on joining in the core of third and fourth-tier cities. At the same time, through the mode of offlineexperience and online re-purchase, Purcotton achieved deep integration of multiple channels, with platforms complementing each other. As ofthe end of the reporting period, there were approximately 56 million members across all domains, an increase of 7.0% from the end of lastyear. Online channels focus on new products and popular matrix, strengthen mutual penetration between categories, and strive to improve theconversion rate of new products and the repurchase rate of former customers. During the reporting period, the online channel achieved arevenue of RMB 1.38 billion, up by 11.1% year-on-year, among which the traditional third-party e-commerce platform increased by over 15%,and the interest-driven e-commerce platform achieved breakthrough growth (for example, TikTok increased by nearly 80% year-on-year). Thedevelopment of offline stores has been accelerated, and the profitability has returned to that of 2019. During the reporting period, offline storesrealized a revenue of RMB 700 million, an increase of 8.9%. By the end of Jun 2024, there were 444 offline stores (including 360 direct storesand 84 franchise stores), and 42 new stores were opened in the first half of the year (31 direct stores and 11 franchise stores).
(3) Profitability: infection protection products have impacted the performance of medical business; however, Purcotton has returned to astronger position compared to 2019.
In the first half of 2024, the Company improved its operational capacity, with inventory turnover efficiency also restored to 2019 level. Theprofitability performance of the two businesses diverged due to the varying industry conditions they operate.
In the first half of 2024, demand for infection protection products returned to normal. As the company actively promoted sales, its pricingaligned with market trends, in stark contrast to the unusually high gross profit seen during the same period last year. The gross profit forinfection protection products fell from 53.3% last year to 20.2% this year, resulting in an overall gross profit margin for the medicalconsumables business dropping by 7.1 percentage points to 38.1%.
In the healthy consumer goods segment, in the first half of 2024, the Company continued to drive profitability through new product iteration,product structure optimization, discount control, cost reduction and improved operation management. Despite the fluctuation in cotton prices,the gross profit margin in Purcotton reached 56.9%, down 1.3 percentage points year-on-year. However, the operating profit margin reached
12.8%, and the profitability returned to a better level in 2019. Revenue and profit have increased, demonstrating that Purcotton’sgrowth does not come at the expense of profitability. The Company remains committed to sourcing global high-quality cotton, focusingon product innovation and advanced production technology to deliver excellent products to consumers, while constantly improving itsinternal operation and management capabilities. This approach underscores a sustainable and high-quality development trend as awhole.
(4) Outlook for future development: Focus firmly on the two main industries and take the road of high-quality development
Medical consumables are just-demanded, high-frequency, widely-used products, with huge domestic and international market space. Themedical consumables industry in China is extremely decentralized, but in overseas markets, after decades of development, the concentrationeffect of the leader has emerged. With a strong manufacturing capacity, Winner Medical relies on its brand awareness and reputationaccumulated in recent years to further consolidate the construction of online and offline channels, laying a solid foundation for the steadydevelopment of conventional products and the continuous improvement of market share. In the future, Winner Medical will endeavor toenhance its endogenous capabilities in clinical R&D, marketing, material development and industry chain control, and stay active to seekopportunities for outward mergers and acquisitions to make great strides toward the strategic goal of “leading in medical consumables andproviding one-stop medical consumables solutions”.
Healthy consumer goods brand - Purcotton, backed by the parent company’s medical background and quality genes, has formed a differentiatedcompetitive advantage with “all-cotton” comfortable, healthy, environmentally friendly materials, high stickiness of the customer base, andexcellent product quality. In today’s climate of mindful consumption, Purcotton is committed to delivering high-quality products. Ratherthan catering to short-term trends by compromising quality or engaging in price wars, we focus on fostering sustainable, high-qualitygrowth for our business. Purcotton will continue to focus on the scenarios, practicing the best-selling strategy, while actively exploring bothdomestic and international online and offline channels. This will help more consumers access high-quality cotton products at competitive price,reduce environmental pollution, and promote a more natural way of life. Purcotton will continue to promote a healthy lifestyle of cotton,shaping the brand perception, and conveying its core mission and brand value of “changing the world with pure cotton”. The company iscommitted to advancing its brand development.
Opportunities always exist alongside challenges in the complex and changing external environment. The Company will continue to promotethe core strategy of “leading products with operational excellence”, focusing on its main business, while pursuing parallel development in bothmedical and consumer sectors online and offline. It aims for synergistic development of endogenous and exogenous, striving to open a newchapter in the high-quality development of Winner Medical.
2. Business Management Analysis
(1) Product R&D
The Company sticks to independent innovation and development of basic materials. In the field of medical wound care, the Company hasrefined its technical layout for the second-generation high-end wet wound dressing product line. The silicone gel foam dressings have beenupgraded to their fourth generation and successfully launched. Additionally, the hydrophilic fiber dressings have obtained CE registrationunder the latest EU MDR regulations, and the medical hydrogel wound dressings have achieved mass production and successful launch. In thefield of medical consumables, the Company focuses on the development of core basic materials for the application of operating roomconsumables such as surgical gowns, surgical towels and wipes. This effort aims to enhance the comfort of the products, reduce the cost ofproduction of the products, and further enhance the market competitiveness of the products, ultimately providing a better experience of theproducts for the medical practitioners and other users, while creating greater value for users. In the area of production and research, in June2023, the Company and Wuhan Textile University jointly built a comprehensive technological innovation platform for advanced fiber materialsin Hubei Province. This initiative aims to facilitate industrial incubation, and complete the in vitro and in vivo biological evaluation of a newseries of artificial blood vessels with high patency rate. The goal is to break the monopoly of artificial blood vessels abroad, and promote theuse of domestic alternatives. In November 2023, the Company’s bionic artificial cornea project was successfully designated as a major scientificand technological research project in Shenzhen, in collaboration with the Southern University of Science and Technology. Venturing into theresearch of high-value medical bionic implant materials and expanding the application fields of collagen will help the Company enhance theproduction capacity of its collagen production line.
In the field of health consumables, the Company has emerged as an industry leader by pioneering a softening technology that eliminates theuse of chemical softeners. This innovation enhances the softness of core cotton tissue products while maximizing the retention of the naturalsoftness of cotton fibers, making it more eco-friendly, sustainable, and natural. The Company has pioneered a unique cotton-covered yarntechnology along with an innovative finishing process, leading to the successful development of elastic gauze that boasts more than six timesthe elasticity of traditional gauze. This breakthrough addresses the discomfort often associated with conventional gauze products. Our elasticgauze has been incorporated into children’s outdoor wear and home apparel, giving us a strong edge in the market. For the first time, theCompany has developed probiotic anti-allergic antibacterial gauze. This product effectively reduces allergens and inhibits the growth ofharmful bacteria through our proprietary probiotic microcapsule wrapping technology. It’s already being used in baby jumpsuits and otherinfant products. Additionally, we have developed a biological wave anti-mosquito solution. By analyzing and extracting the specific wavefrequency of pyrethrins that resonates with the fiber surface, we can paralyze mosquitoes, achieving effective repellent action. This approachuses pure biological wave technology without any chemical additives, ensuring it is gentle on the skin, odorless and safe. This innovation hasbeen applied to baby pants. The company continues to carry out the excavation and transformation of low-carbon production processes, andhas completed the verification statement of carbon footprint for five core products. In addition, on that basis, the company has carried outcarbon reduction by the low-temperature de-bleaching technology, with the unit steam consumption reduced by more than 30%. The companyhas also carried out research with Tianjin Polytechnic University on the comfort of all-cotton leisure wear, and with Jiangnan University onthe technical development of cotton and cotton-type yarn performance enhancement.
(2) Brand building
Winner Medical is dedicated to strengthening its brand image, one that resonates with consumers and earns the trust of doctors. We areenhancing our visibility and reputation through media partnerships and advertising, building academic marketing expertise via clinical outreach,and supporting users and special groups through public welfare initiatives - all to drive our brand marketing strategy. In the first half of theyear, Winner Medical collaborated with CCTV.com for a promotional campaign featuring our “Cotton Lined Mask”, generating over 100million impressions. In partnership with professional physicians, we launched the “Saline Wet Tissues”, underscoring our commitment toproviding comfortable, eco-friendly, high-quality medical products. We participated in four major medical trade fairs, including CMEF, andin August 2024, we received the CPEO Golden Award for Health Personal Care Brands at the 16th China Health Industry EcologicalConference - CPEO. Our focus on professional medical engagement highlights Winner Medical’s diverse product range and robust capabilities.Through various domestic outreach efforts, we showcased not only our extensive product line but also our technological advancements, R&Dinnovations, and industry leadership. The “Health Month” initiative in May, an original Winner Medical initiative, included dozens of offlinehealth education events to promote professional medical knowledge, embodying our corporate vision of “caring for health and life, making abetter world.”
Purcotton also continues to deepen its emotional connection with consumers through interactive communication. Through a variety ofinitiatives - spokesperson initiatives, charitable actions, offline lifestyle festivals, eco-friendly campus activities, and creative subwayexhibitions - we are enhancing our brand influence with heartfelt original content. This approach allows us to deeply connect with our brandwith values centered around cotton, environmental sustainability, and a warm, impactful presence. In 2024, we partnered with renownedcelebrities Guo Jingjing, Zhao Liying, and Sun Qian to share New Year greetings with the theme “Every Generation Has a Cotton Era”,showcasing high-quality cotton products for all ages. In February, our sanitary pad brand, Nice Princess, launched the “Nice For Her” initiative,promoting menstrual health. This campaign collaborated with the China Women’s Development Foundation and Ai Xiaoya to distribute“Menstrual Charity Packs” to underprivileged female students in primary and secondary schools. We also established menstrual healtheducation programs and introduced sanitary pad sharing boxes across several universities, offering emergency sanitary pads for free in mallsand stores. These initiatives not only fostered a more supportive environment for women but also enhanced our connection with femaleconsumers, earning widespread societal recognition. On the eve of International Women’s Day, our campaign “Choose Nice Princess for SleepPants” reached an audience of 33 million through elevator media advertising. During World Sleep Day, we integrated our brand into popularculture by featuring spokesperson Zhao Liying in the hit drama The Legend Of Shen Li, while simultaneously launching our spring and summerproduct lines, increasing awareness of Purcotton’s home textiles and driving sales growth. On Earth Day, April 22, we launched the “Mountainand Sea Healing Project.” This initiative features events such as the Upcycled Clothing Store campaign, community clean-up hikes, anddonations of summer protection supplies for forestry workers and sanitation staff. This blend of quality original content and actionable effortsengaged university students and environmental advocates, further solidifying the brand’s commitment to green sustainability. For Children’sDay on June 1, we specially curated the “Listen to Children’s Voices” theme, featuring a call for submissions, a creative subway exhibition, athemed video, and an offline children’s fashion show. This initiative reflects our brand’s dedication to listening to and understanding children,fostering a connection between adults and kids. On June 22, we held a meet-and-greet event with Zhao Liying, our global ambassador for hometextiles and loungewear, in Chongqing. During the event, Zhao Liying showcased our high-quality cotton products and shared lifestyle tips forachieving “greater comfort at home with cotton.” The livestream attracted over 9.05 million viewers, enhancing consumer awareness ofPurcotton’s brand philosophy and product benefits, while further reinforcing brand recognition and favorability among consumers.
YoY changes in key financial data
Unit: yuan
| Current reporting period | Same period last year | Year-on-year increase/decrease | Reason for change |
Revenue
| Revenue | 4,033,505,104.33 | 4,266,838,038.66 | -5.47% | No major changes |
Cost of sale
| Cost of sale | 2,068,470,442.58 | 2,071,428,206.72 | -0.14% | No major changes |
Selling Expenses
| Selling Expenses | 1,055,741,084.22 | 960,442,911.44 | 9.92% | No major changes |
Administrative Expenses
| Administrative Expenses | 309,446,026.40 | 289,596,702.14 | 6.85% | No major changes |
Financial Expenses
| Financial Expenses | -37,442,539.84 | -52,794,426.69 | -29.08% | No major changes |
Income Tax Expenses
| Income Tax Expenses | 67,151,050.24 | 114,886,459.15 | -41.55% | Mainly due to a decrease in total profit |
R&D expenses
| R&D expenses | 143,142,952.33 | 194,636,202.14 | -26.46% | No major changes |
Net cash flow from operatingactivities
| Net cash flow from operating activities | 193,333,516.76 | 158,178,712.89 | 22.22% | No major changes |
Net cash flow from investingactivities
| Net cash flow from investing activities | -423,873,353.55 | 380,420,978.74 | -211.42% | Mainly due to the decrease in the redemption of financial products and the increase in foreign equity investments during the period. |
Net cash flow from financingactivities
| Net cash flow from financing activities | -560,896,220.86 | -678,722,588.25 | -17.36% | No major changes |
Net increase in cash and cashequivalents
| Net increase in cash and cash equivalents | -783,341,536.49 | -134,381,719.01 | 482.78% | Mainly due to a decrease in the redemption of financial products and the increase in foreign equity investments during the period. |
Significant changes in the profit composition or profit source of the Company during the reporting period
□ Applicable √ Not applicable
There was no significant change occurred in the profit composition or profit source of the Company during the reporting period.
Products or services accounting for more than 10%
√Applicable □ Not applicable
Unit: yuan
| Revenue | Cost of sale | Gross profit margin | Year-on-year increase/decrease in revenue | Year-on-year increase/decrease in cost of sale | Change in gross profit margin |
By product or service
| By product or service |
By industry
| By industry |
Medical consumables
| Medical consumables | 1,718,139,287.93 | 1,063,575,499.62 | 38.10% | -20.93%1* | -10.68% | -7.11% |
Healthy consumergoods
| Healthy consumer goods | 2,282,226,506.99 | 983,852,286.64 | 56.89% | 10.63% | 14.08% | -1.30%2* |
By product
| By product |
Medical consumables -traditional wound careand wound dressingproducts
| Medical consumables - traditional wound care and wound dressing products | 582,420,123.38 | 402,683,510.01 | 30.86% | 2.22% | 11.13% | -5.54% |
Healthy consumergoods - wet and drycotton tissues
| Healthy consumer goods - wet and dry cotton tissues | 680,511,245.81 | 342,633,199.41 | 49.65% | 24.83%3* | 37.13% | -4.52% |
Healthy consumergoods - baby clothes
| Healthy consumer goods - baby clothes | 448,607,894.90 | 180,674,777.06 | 59.73% | 4.31% | 0.08% | 1.70% |
Healthy consumergoods - adult apparel
| Healthy consumer goods - adult apparel | 436,146,654.99 | 149,413,469.45 | 65.74% | 8.93% | 2.95% | 1.99% |
By region
| By region |
Domestic
| Domestic | 3,128,691,807.63 | 1,517,593,464.58 | 51.49% | -10.26% | -7.47% | -1.46% |
Abroad
| Abroad | 871,673,987.29 | 529,834,321.68 | 39.22% | 16.26% | 28.25% | -5.68% |
Note: 1* Revenue from medical consumables decreased by 20.93% compared with the same period of the previous year, mainly due to asignificant drop in demand for infection protection products.
2* The gross profit margin of the Healthy Consumer Goods business decreased by 1.30%, mainly due to rising cotton purchase prices.
3* Revenue from wet and dry cotton tissues increased by 24.83% year-on-year, driven by enhanced communication with consumers, innovativeusage scenarios, and strengthened product capability.
If the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company shall follow the primary businessdata in the past year changed by the caliber at the end of the reporting period
□ Applicable √ Not applicable
Whether the Company has sales terminals in brick-and-mortar stores
√ Yes □ No
Distribution of brick-and-mortar stores
| Types of stores | Number of stores | Area of stores | Number of new stores during the reporting period | Number of stores closed at the end of the reporting period | Reasons for store closings | Brands involved |
Direct-salestores
| Direct-sale stores | 360 | 109,012 | 31 | 8 | Voluntary store closure due to contract expiration or personal preference | Purcotton |
Franchises
| Franchises | 84 | 18,439 | 11 | 1 | Mall renovation and closure due to contract expiration | Purcotton |
Total area and performances of direct-sale stores
| Range of areas | Number of stores | Total area | Revenue in January-June 2024 (10,000 yuan) | Revenue for the same period last year (10,000 yuan) | Average performance of stores | Reasons |
| Year-on-year increase/decrease |
Less than 300㎡
| Less than 300㎡ | 154 | 33,734.55 | 25,795.72 | 25,645.98 | 6.62% |
300-500㎡
| 300-500㎡ | 98 | 36,225.86 | 21,513.65 | 21,617.23 | 7.38% |
500-800㎡
| 500-800㎡ | 25 | 15,461.47 | 7,532.47 | 7,697.32 | 11.82% |
More than 800㎡
| More than 800㎡ | 8 | 7,310.38 | 2,361.90 | 2,475.81 | -5.27% |
Total
| Total | 285 | 92,732.26 | 57,203.74 | 57,436.34 | 3.44% |
Note: The above list includes Purcotton stores that have been open for over 12 months as of June 30, 2024, including those that have downsizedthis year.
Top 5 Stores in terms of Operating Revenues
| No. | Name of stores | Opening date | Revenue (yuan) | Average performance of the store (RMB/m2/half year) |
| 1 | First | August 6, 2012 | 6,638,099.55 | 11,351.25 |
| 2 | Second | October 25, 2017 | 6,326,354.08 | 15,647.67 |
| 3 | Third | July 20, 2016 | 5,649,311.73 | 12,019.81 |
| 4 | Fourth | November 11, 2017 | 5,422,761.37 | 4,889.78 |
| 5 | Fifth | January 18, 2018 | 5,257,994.07 | 12,609.10 |
Total
| Total | -- | -- | 29,294,520.80 | 9,813.61 |
New stores of listed companies
√ Yes □ No
| Name of stores | Address of stores | Opening year | Contract area (m2) | Investment amount (yuan) | Product category | Business type | Business model | Property ownership status | Number of stores |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | Central China | 2024 | 802.70 | 3,875,724.92 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 3 |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | North China | 2024 | 606.00 | 4,931,270.63 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 3 |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | West China | 2024 | 1,442.25 | 9,732,646.15 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 6 |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | South China | 2024 | 1,320.15 | 8,689,348.54 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 8 |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | East China | 2024 | 1946.54 | 10,871,434.65 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 9 |
Direct-sale stores ofPurcotton
| Direct-sale stores of Purcotton | Northeast China | 2024 | 410.26 | 1,955,907.47 | Healthy consumer goods | Retail | Direct-sale stores | Purcotton leasing | 2 |
Purcottonfranchises
| Purcotton franchises | North China | 2024 | 391.00 | 518,003.71 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 2 |
Purcottonfranchises
| Purcotton franchises | South China | 2024 | 173.52 | 433,605.22 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 1 |
Purcottonfranchises
| Purcotton franchises | West China | 2024 | 554.43 | 965,675.70 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 3 |
Purcottonfranchises
| Purcotton franchises | Central China | 2024 | 316.32 | 589,369.45 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 2 |
Purcottonfranchises
| Purcotton franchises | East China | 2024 | 314.00 | 407,725.65 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 1 |
Purcottonfranchises
| Purcotton franchises | Northeast China | 2024 | 276.42 | 617,852.12 | Healthy consumer goods | Retail | Franchisees | Purcotton franchisees | 2 |
Total
| Total | 8,553.59 | 43,588,564.21 | 42 |
Does the Company disclose the information on Top 5 franchises
□Yes √No
IV. Other Information Required by the Disclosure Guidelines for Textile and Apparel-RelatedSectors
1. Production Capacity
The Company’s own production capacity
| Current reporting period | Same period last year |
More than 10% YoY change in production capacity utilization rate
√ Yes □ No
| Business category | Product category | Unit | January-June 2024 | January-June 2023 | Percentage of change in production capacity utilization rate | Change reason description | ||||
| Production capacity | Output | Production capability utilization rate | Production capacity | Output | Production capability utilization rate | |||||
Healthyconsumergoods
| Healthy consumer goods | Cotton tissues | ‘0,000 kits | 18,196 | 9,087 | 50% | 17,987 | 7,742 | 43% | 7% | |
| Sanitary napkins | ‘0,000 pieces | 39,836 | 29,406 | 74% | 31,869 | 20,225 | 63% | 11% | New production equipment and production lines, more complete product types, increased market demand, more orders |
Is there overseas production capacity?
□Yes √No
2. Sales Model and Channels
Sales channels and actual operation of products
The Company’s healthy consumer goods are involved in the textile and apparel industries. The sales channels for healthy consumer goodsinclude online sales and offline stores.
Unit: yuan
| Sales channels | Revenue | Cost of sale | Gross profit margin | Year-on-year increase/decrease in revenue (%) | Year-on-year increase/decrease in cost of sale (%) | Change in gross margin ratio (%) |
Online Sales
| Online Sales | 1,381,019,123.38 | 647,236,708.42 | 53.13% | 11.14 | 13.83 | -1.11% |
Offlinestores
| Offline stores | 704,826,144.15 | 247,037,256.65 | 64.95% | 8.94 | 8.52 | 0.14% |
Reasons for change
3. Selling Expenses and Composition
| Item | Current period amount (Yuan) | Previous period amount (Yuan) | Year-on-year increase/decrease | Reasons for differentiation |
Employee Compensation
| Employee Compensation | 308,895,689.06 | 315,528,733.79 | -2.10% | No major changes |
Travel expenses
| Travel expenses | 11,089,494.35 | 10,524,681.48 | 5.37% | No major changes |
Office communication costs
| Office communication costs | 6,712,347.78 | 6,090,498.20 | 10.21% | No major changes |
Sales commissions and expensesof e-commerce platform
| Sales commissions and expenses of e-commerce platform | 150,321,611.77 | 125,398,549.11 | 19.88% | No major changes |
Insurance premiums
| Insurance premiums | 2,303,225.44 | 2,967,753.30 | -22.39% | No major changes |
Depreciation and amortization
| Depreciation and amortization | 117,958,551.43 | 112,902,943.06 | 4.48% | No major changes |
Advertising and promotionexpenses
| Advertising and promotion expenses | 339,609,578.47 | 276,337,254.06 | 22.90% | No major changes |
Lease and property managementexpenses
| Lease and property management expenses | 76,942,306.30 | 77,531,439.61 | -0.76% | No major changes |
Others
| Others | 41,908,279.60 | 33,161,058.83 | 26.38% | No major changes |
Total
| Total | 1,055,741,084.22 | 960,442,911.44 | 9.92% | No major changes |
Note: “3. Sales expenses and composition” and “7. Inventory situation” reflect data of the entire Company, while the other tables under “4.Other information required by the information disclosure guidelines for textile and garment related industries” pertain especially to Purcottonwithin the textile and garment sector.
4. Franchising and Distribution
The proportion of franchisees and distributors’ sales revenues exceeds 30%
□Yes √No
Top 5 franchises
| No. | Name of franchisee | Start date of cooperation | A related party or not | Total sales (yuan) | Level of franchisee |
| 1 | Franchisee 1 | December 28, 2022 | No | 5,367,753.95 | Primary |
| 2 | Franchisee 2 | November 09, 2020 | No | 4,580,270.64 | Primary |
| 3 | Franchisee 3 | June 16, 2023 | No | 4,187,124.08 | Primary |
| 4 | Franchisee 4 | June 01, 2021 | No | 4,087,488.30 | Primary |
| 5 | Franchisee 5 | June 26, 2022 | No | 3,888,530.12 | Primary |
Total
| Total | -- | -- | -- | 22,111,167.09 | -- |
Top 5 distributors
| No. | Name of franchisee | Start date of cooperation | A related party or not | Total sales (yuan) |
5. Online Sales
The proportion of online sales in sales revenues exceeds more than 30%
√ Yes □ No
Is there a self-built sales platform?
√ Yes □ No
| Operation starting time | January 06, 2014 |
Number of registered users
| Number of registered users | 14,842,207 |
Average number of monthly active users
| Average number of monthly active users | 1,656,538 |
Does it work with a third-party sales platform?
√ Yes □ No
Unit: yuan
| Name of platform | Transaction amount during the reporting period | Return rate |
Taobao (healthy consumer goods)
| Taobao (healthy consumer goods) | 692,766,874.86 | 2.08% |
Opening or closing online sales channels by the Company
□ Applicable √ Not applicable
Description of the impact on the current and future development of the Company
6. Agency Operation
Does it adopt agency operation?
□Yes √No
7. Inventory
Inventory
| Main products | Inventory turnover in days | Inventory amount (Yuan) | YoY increase/decrease in inventory balance amount (Yuan) | Reasons |
Raw materials and goodsprocessed by the commission
| Raw materials and goods processed by the commission | 273,553,745 | 29,603,724 | Mainly due to increased production inventory |
Work in process
| Work in process | 162,488,547 | -4,038,654 | No major changes |
Finished goods
| Finished goods | 959,724,586 | -22,743,016 | Mainly due to accelerated stock clearance of infection protection products during the period |
Goods in transit
| Goods in transit | 39,872,022 | 15,155,864 | Mainly due to the increase in foreign sales in June this year, as well as an increase in inventory that has not yet met the criteria for income recognition. |
Low-value consumables
| Low-value consumables | 17,543,815 | 878,510 | No major changes |
Total
| Total | 148 | 1,453,182,716 | 18,856,428 |
Provision accrual for inventory depreciation
Unit: yuan
| Class | Closing balance of the previous year | Amount increased in the current period | Amount decreased in the current period | Closing Balance |
| Accrual | Reversal or write-back |
Raw materials and goodsprocessed by the commission
| Raw materials and goods processed by the commission | 13,590,764.92 | 9,895,273.94 | 7,198,190.86 | 16,287,848.00 |
Work in process
| Work in process | 36,094,235.16 | 2,252,175.07 | 5682067.21 | 32,664,343.02 |
Finished goods
| Finished goods | 205,259,954.93 | 78,606,775.59 | 80,967,651.20 | 202,899,079.32 |
Low-value consumables
| Low-value consumables | 1,598,990.58 | 641,804.10 | 144,870.75 | 2,095,923.93 |
Total
| Total | 256,543,945.59 | 91,396,028.70 | 93,992,780.02 | 253,947,194.27 |
Inventory information of end channels such as franchises or distributors
8. Brand Building
Whether the company is involved in the production and sales of branded clothing, apparel and home textile products
√ Yes □ No
Private brand
| Brand name | Trademark name | Main product types | Features | Target customers | Main product price bands | Main market territory | Level of cities |
Purcotton
| Purcotton | Purcotton | Cotton tissues | Made from 100% high-quality natural cotton, and free from fluorescent whitening agents, our products are gentle and non-irritating. The unique spunlaced non-woven fabric processing technology of Purcotton preserves the softness of cotton while minimizing chemical processing, ensuring optimal protection for consumers’ skin. | All-age customer base | 9.9-30 yuan/pack (100 pieces) | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | Nice Princess | Sanitary napkins | 100% cotton surface layer (surface layer, spacer, sanitary wing surface layer), soft and low friction, not easy to cause allergies. All products are certified medical grade. | Female population at appropriate ages | 1.5-4.99 yuan/piece | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | BBNice | Cotton diapers | 100% cotton surface layer; unique in the market; made from natural cotton; 2mm ultra-thin core with 28 times ultra-high absorption capacity | Parental population | 2.45-5.45 yuan/piece | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | Purcotton | Wet tissues | 100% cotton material; soft and non-slippery; gentle and non-irritating, passed the food-grade certification. | All-age customer base | 20-40 yuan/pack | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | Purcotton | Baby products/clothing | 100% cotton material without fluorescent throughout the production line; the unique gauze fabric provides more comfortable care | Expecting mothers, newborns, babies, toddlers | 100-500 yuan/piece | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | Purcotton | Adult apparel/intimate apparel | Made from 100% cotton, our products feature high-quality cotton throughout the production process. The original soft cotton yarn from Purcotton is fluffy to the touch, providing a soft and comfortable feel against the skin. | Adult apparel: adult men and women of all ages; intimate apparel: customers of all ages | Outwear: 150--800 yuan/piece; leisure wear: 200--800 yuan/piece; thermal underwear: 200--600 yuan/piece; underwear: 58--108 yuan/pair (pack); socks: 20--40 yuan/pair | Nationwide | Second- and third-tier cities and above |
Purcotton
| Purcotton | Purcotton | Bedding, toiletries | Made from 100% cotton, our products use high-quality cotton throughout the production process, with no added softeners. The more you wash it, the softer it gets! | Expecting mothers, newborns, babies, toddlers and adult customer base | Baby bedding: RMB 268-1698 /set; toddler bedding: RMB 198-1098 /set; adult bedding: RMB 268-3198 /set; toiletries: RMB 38-398 /piece | Nationwide | Second- and third-tier cities and above |
Partner brands: None
Licensed brand: None
Marketing and operation of each brand during the reporting period
Please refer to the “III. Analysis of Main Business” of “Section III Management Discussion and Analysis” for details.
Cases involved in trademark ownership disputes
□ Applicable √ Not applicable
9. Others
Whether the Company is engaged in apparel design-related business
□Yes √No
Did the Company hold an order meeting?
□Yes √No
V. Other Business Analysis
√Applicable □ Not applicable
Unit: yuan
| Amount | Proportion to total profits | Formation reasons | Is it sustainable |
Investment Income
| Investment Income | 33,445,096.19 | 7.07% | Mainly due to maturity gains on financial products and recognition of gains and losses on investments in associates | Yes |
Pro?t/loss from changesin fair value
| Pro?t/loss from changes in fair value | 7,577,712.84 | 1.60% | Mainly due to the changes in fair value of financial products (such as structured deposits). | No |
Impairment of assets
| Impairment of assets | -55,975,503.16 | -11.82% | Mainly due to the provision for inventories impairment | No |
Non-Operating Income
| Non-Operating Income | 6,143,356.51 | 1.30% | Mainly attributed to non-operating income from non-current assets, such as gains on asset retirement and compensation income | No |
Non-OperatingExpenses
| Non-Operating Expenses | 6,218,160.01 | 1.31% | Mainly due to the losses on the scrapping of non-current assets. | No |
Credit Impairment Loss
| Credit Impairment Loss | -8,295,817.44 | -1.75% | Mainly due to the expected credit losses on the accrual of accounts receivable and other receivables. | No |
Gains from AssetDisposal
| Gains from Asset Disposal | 1,930,800.28 | 0.41% | Mainly due to the losses on disposal of non-current assets. | No |
Other Incomes
| Other Incomes | 37,282,933.10 | 7.88% | Mainly due to the receipt of government grants related to operations and related tax credits. | Relevant tax deduction: Yes, other: No |
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
Unit: yuan
| End of the reporting period | End of the previous year | Increase/decrease in proportions | Description of significant changes | |||
| Amount | The proportion to total assets | Amount | The proportion to total assets | |||
Cash and cashequivalents
| Cash and cash equivalents | 3,917,672,185.79 | 23.64% | 4,706,132,071.27 | 27.50% | -3.86% | Cash dividends, share repurchase, repayment of short-term loans, and equity investment in the current period |
AccountsReceivable
| Accounts Receivable | 939,231,196.69 | 5.67% | 768,602,289.60 | 4.49% | 1.18% | No major changes |
Inventory
| Inventory | 1,453,182,715.60 | 8.77% | 1,434,326,287.96 | 8.38% | 0.39% | No major changes |
Investment RealEstates
| Investment Real Estates | 7,166,185.13 | 0.04% | 7,693,341.79 | 0.04% | 0.00% | No major changes |
Long-TermEquityInvestment
| Long-Term Equity Investment | 441,256,304.67 | 2.66% | 20,879,244.20 | 0.12% | 2.54% | Mainly due to new investment in an associate in the current period |
Fixed Assets
| Fixed Assets | 2,903,124,395.97 | 17.52% | 2,749,018,750.62 | 16.06% | 1.46% | No major changes |
Construction inProgress
| Construction in Progress | 1,030,446,202.20 | 6.22% | 984,571,329.05 | 5.75% | 0.47% | No major changes |
Right-of-UseAssets
| Right-of-Use Assets | 421,817,678.37 | 2.55% | 417,496,021.36 | 2.44% | 0.11% | No major changes |
Short-TermLoans
| Short-Term Loans | 1,170,327,194.78 | 7.06% | 1,493,238,955.00 | 8.73% | -1.67% | No major changes |
ContractLiabilities
| Contract Liabilities | 179,911,770.00 | 1.09% | 193,262,892.15 | 1.13% | -0.04% | No major changes |
Long-TermLoans
| Long-Term Loans | 0.00% | 170,000,000.00 | 0.99% | -0.99% | Mainly due to reclassification to non-current liabilities due within one year in the current period |
Lease Liabilities
| Lease Liabilities | 304,172,545.81 | 1.84% | 292,009,504.04 | 1.71% | 0.13% | No major changes |
Notes Receivable
| Notes Receivable | 13,038,762.74 | 0.08% | 42,963,076.53 | 0.25% | -0.17% | Mainly because fewer notes receivable were received in the current period |
Other CurrentAssets
| Other Current Assets | 182,630,205.72 | 1.10% | 378,853,652.64 | 2.21% | -1.11% | Mainly due to the expiration of the large deposit certificate pledge, which is reclassified to cash and cash equivalents |
Taxes Payable
| Taxes Payable | 93,252,897.83 | 0.56% | 62,877,779.86 | 0.37% | 0.19% | Mainly due to the increase in VAT payable in the current period compared with the beginning of the year |
Non-CurrentLiabilities Duewithin One Year
| Non-Current Liabilities Due within One Year | 373,940,213.86 | 2.26% | 223,426,826.45 | 1.31% | 0.95% | Mainly due to the reclassification of long-term loans to this account |
2. Major Overseas Assets
□ Applicable √ Not applicable
3. Assets and Liabilities Measured at Fair Value
√Applicable □ Not applicable
Unit: yuan
| Item | Opening balance | Gain/loss from changes in fair value for the period | Accumulated fair value changes included in equity | Impairment accrual in the current period | Purchase amount during the reporting period | Sales amount during the reporting period | Other changes | Closing balance |
FinancialAssets
| Financial Assets |
1. Tradable
financial assets(excludingderivativefinancialassets)
| 1. Tradable financial assets (excluding derivative financial assets) | 2,850,058,540.71 | 7,577,712.84 | 1,131,000,000.00 | 1,464,000,000.00 | 2,524,636,253.55 |
Financial assetssubtotal
| Financial assets subtotal | 2,850,058,540.71 | 7,577,712.84 | 1,131,000,000.00 | 1,464,000,000.00 | 2,524,636,253.55 |
Total of theabove
| Total of the above | 2,850,058,540.71 | 7,577,712.84 | 1,131,000,000.00 | 1,464,000,000.00 | 2,524,636,253.55 |
Financialliabilities
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changes
Whether there were any significant changes in the measurement attributes of the Company’s major assets during the reporting period
□Yes √No
4. Restricted Rights to Assets as of the End of the Reporting Period
For details, see “Section X. Financial Report - Ⅶ Notes to consolidated financial statements - 31. Assets with Restricted Ownership or UseRights”.
VII. Analysis of Investment
1. Overall Situation
√Applicable □ Not applicable
| Investment amount in the reporting period (yuan) | Investment amount in the same period of the previous year (yuan) | Change percentage |
1,213,190,997.98
| 1,213,190,997.98 | 3,287,448,839.13 | -63.10%1* |
Note: The investment decreased by 63.10% compared with the same period last year, mainly due to: ① a higher purchase of wealthmanagement products last year; ② all fundraising projects were under construction last year, leading to significant expenditures. This year,with those projects nearly completed, expenditures are considerably lower.
2. Significant Equity Investments Acquired during the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments in Progress during the Reporting Period
√Applicable □ Not applicable
Unit: yuan
| Project name | Investment method | Investment in fixed assets or not | Industries involved in investment projects | Investment amount in the current reporting period | Cumulative actual investment amount as of the end of the reporting period | Source of funds | Project progress | Estimated income | Cumulative realized gains as of the end of the reporting period | Reasons for not meeting the scheduled progress and projected earnings | Date of disclosure (if any) | Disclosure index (if any) |
Advanceddressingproduction lineconstruction project
| Advanced dressing production line construction project | Independent | Yes | Medical consumables | 362,300.00 | 146,150,735.58 | Proceeds | 67.39% | / | 15,274,412.12 | N/A |
Marketing networkconstruction project
| Marketing network construction project | Independent | Yes | Healthy consumer goods | 34,571,689.45 | 656,066,385.85 | Proceeds | 106.15% | 0.00 | 0.00 | N/A |
R&DCenterconstruction project
| R&D Center construction project | Independent | Yes | Medical consumables + Healthy consumer goods | 13,104,649.14 | 202,674,447.01 | Proceeds | 94.08% | 0.00 | 0.00 | N/A |
Digitalmanagementsystemproject
| Digital management system project | Independent | Yes | Medical consumables + Healthy consumer goods | 28,102,098.39 | 226,909,506.98 | Proceeds | 84.41% | 0.00 | 0.00 | N/A |
WinnerIndustrialPark(Jiayu)Project
| Winner Industrial Park (Jiayu) Project | Independent | Yes | Medical consumables | 1,558,311.00 | 436,619,700.73 | Proceeds | 103.96% | 0.00 | 0.00 | N/A |
Phase IIExpansion Projectof WinnerMedicalWuhan
| Phase II Expansion Project of Winner Medical Wuhan | Independent | Yes | Medical consumables + Healthy consumer goods | 4,491,950.00 | 614,007,730.73 | Proceeds | 102.33% | 0.00 | 0.00 | N/A |
Total
| Total | -- | -- | -- | 82,190,997.98 | 2,282,428,506.88 | -- | -- | 0.00 | 15,274,412.12 | -- | -- | -- |
4. Financial Assets Measured at Fair Value
√Applicable □ Not applicable
Unit: yuan
| Asset classes | Initial investment cost | Gain/loss from changes in fair value for the period | Accumulated fair value changes included in equity | Purchase amount in the current reporting period | Sales amount in the current reporting period | Accumulated investment income | Other changes | Closing balance | Source of funds |
Others
| Others | 1,651,000,000.00 | -12,807,056.481* | 976,000,000.00 | 1,306,000,000.00 | 39,041,624.32 | 1,334,269,210.26 | Self-owned funds |
Others
| Others | 58,000,000.00 | -125,333.33 | 55,000,000.00 | 58,000,000.00 | 707,032.50 | 55,047,666.67 | Proceeds |
Trustproducts
2*
| Trust products2* | 1,100,000,000.00 | 20,510,102.65 | 100,000,000.00 | 100,000,000.00 | 1,365,653.13 | 1,135,319,376.62 | Self-owned funds |
Total
| Total | 2,809,000,000.00 | 7,577,712.84 | 0.00 | 1,131,000,000.00 | 1,464,000,000.00 | 41,114,309.95 | 0.00 | 2,524,636,253.55 | -- |
Note: 1* The gains and losses from changes in fair value for the current period are negative, mainly because the income from wealthmanagement products due for this period has been reclassified to the investment income account.
Note 2: Trust products primarily consist of risk-rated R2/R3 products and do not involve investments in stocks and real estate.
5. The Use of Proceeds
√Applicable □ Not applicable
(1) The overall use of proceeds
√Applicable □ Not applicable
Unit: ‘0,000 yuan
| Total amount of proceeds | 355,884.931* |
Total amount of proceeds invested during the reporting period
| Total amount of proceeds invested during the reporting period | 8,219.10 |
Total accumulated amount raised for proceeds
| Total accumulated amount raised for proceeds | 354,786.72 |
Total amount of proceeds for alteration purposes during the current reporting period
| Total amount of proceeds for alteration purposes during the current reporting period | 0 |
Total accumulated amount of proceeds for alteration purposes during the currentreporting period
| Total accumulated amount of proceeds for alteration purposes during the current reporting period | 11,102.34 |
Proportion of total amount of proceeds for alteration purposes during the currentreporting period
| Proportion of total amount of proceeds for alteration purposes during the current reporting period | 3.12% |
Description of the overall use of proceeds
Description of the overall use of proceeds
The China Securities Regulatory Commission (CSRC) approved that, in its “CSRC License [2020] No. 1822” document, the Company madean initial public offering of 50 million yuan ordinary shares (A shares) at an offer price of 74.30 yuan per share, and the total proceedsamounted to 3,715.0000 million yuan. After deducting issuance fees of 156.1507 million yuan (excluding tax), net proceeds totaled3,558.8493 million yuan. The proceeds mentioned above were verified by BDO CHINA SHU LUN PAN CERTIFIED PUBLICACCOUNTANTS LLP with a “Capital Verification Report” (Xin Kuai Shi Bao Zi [2020] No. ZI10584).In the first half of 2024, the Company has used raised funds of RMB 168,551,500, of which RMB 82,191,000 was used for fundraisingprojects to supplement working capital of RMB 86,360,500.By the first half of 2024, the Company had used the raised funds of RMB 3,547,867,200, of which: the raised funds were used in fundraisingprojects.RMB 2,282,428,500 (including RMB 1,948,537,100 invested in fundraising projects and RMB 333,891,400 invested in fundraising projectsin advance by replacing self-raised funds), and RMB 1,265,438,700 of working capital was permanently replenished by using raised funds.
The China Securities Regulatory Commission (CSRC) approved that, in its “CSRC License [2020] No. 1822” document, the Company madean initial public offering of 50 million yuan ordinary shares (A shares) at an offer price of 74.30 yuan per share, and the total proceedsamounted to 3,715.0000 million yuan. After deducting issuance fees of 156.1507 million yuan (excluding tax), net proceeds totaled3,558.8493 million yuan. The proceeds mentioned above were verified by BDO CHINA SHU LUN PAN CERTIFIED PUBLICACCOUNTANTS LLP with a “Capital Verification Report” (Xin Kuai Shi Bao Zi [2020] No. ZI10584).In the first half of 2024, the Company has used raised funds of RMB 168,551,500, of which RMB 82,191,000 was used for fundraisingprojects to supplement working capital of RMB 86,360,500.By the first half of 2024, the Company had used the raised funds of RMB 3,547,867,200, of which: the raised funds were used in fundraisingprojects.RMB 2,282,428,500 (including RMB 1,948,537,100 invested in fundraising projects and RMB 333,891,400 invested in fundraising projectsin advance by replacing self-raised funds), and RMB 1,265,438,700 of working capital was permanently replenished by using raised funds.
Note: 1* The total amount of funds raised here is the amount after deducting the issuance expenses of RMB 156,150,700
(2) Committed proceeds projects
√Applicable □ Not applicable
Unit: ‘0,000 yuan
| Committed investment projects and investment of over-raised proceeds | Whether the project has been changed (including partial change) | Net amount of proceeds | Total investment in committed proceeds | Adjusted total investment (1) | Investment amount in the current reporting period | Cumulative investment amount as of the end of the reporting period (2) | Investment progress as of the end of the reporting period (3) = (2)/(1) | The project reaches the intended usable status date | Benefits realized in the current reporting period | Cumulative benefits realized as of the end of the reporting period | Whether projected benefits are met | Whether there is a significant change in project feasibility |
Committedinvestmentprojects
| Committed investment projects |
Advanceddressingproduction lineconstructionproject
| Advanced dressing production line construction project | No | 21,685.86 | 21,685.86 | 21,685.86 | 36.23 | 14,615.07 | 67.39% | December 1, 2023 | 1,527.44 | 1,527.44 | Not applicable (Note 2) | No |
Marketingnetworkconstructionproject
| Marketing network construction project | Yes | 70,456.87 | 70,456.87 | 61,804.04 | 3,457.17 | 65,606.64 | 106.15% | September 01, 2024 | 0 | 0 | N/A | No |
R&D Centerconstructionproject
| R&D Center construction project | Yes | 23,542.15 | 23,542.15 | 21,542.15 | 1,310.46 | 20,267.44 | 94.08% | September 01, 2024 | 0 | 0 | N/A | No |
Digitalmanagementsystem project
| Digital management system project | No | 26,881.05 | 26,881.05 | 26,881.05 | 2,810.21 | 22,690.95 | 84.41% | September 01, 2024 | 0 | 0 | N/A | No |
Bolster workingcapital
| Bolster working capital | No | 9,102.35 | 0 | 9,102.35 | 0 | 0 | N/A | No |
Subtotal ofcommittedinvestmentprojects
| Subtotal of committed investment projects | -- | 142,565.93 | 142,565.93 | 141,015.45 | 7,614.07 | 132,282.45 | -- | -- | 1,527.44 | 1,527.44 | -- | -- |
Investment ofover-raisedproceeds
| Investment of over-raised proceeds |
WinnerIndustrial Park(Jiayu) Project
| Winner Industrial Park (Jiayu) Project | Yes | 42,000 | 155.83 | 43,661.97 | 103.96% | December 1, 2023 | 0 | 0 | Not applicable (Note 3) | No |
Phase IIExpansionProject ofWinner MedicalWuhan
| Phase II Expansion Project of Winner Medical Wuhan | No | 60,000 | 449.2 | 61,400.77 | 102.33% | December 1, 2023 | 0 | 0 | Not applicable (Note 4) | No |
Bolster workingcapital (if any)
| Bolster working capital (if any) | -- | 117,441.53 | 0 | 117,441.53 | -- | -- | -- | -- | -- |
Subtotal of useof over-raisedproceeds
| Subtotal of use of over-raised proceeds | -- | 219,441.53 | 605.03 | 222,504.27 | -- | -- | 0 | 0 | -- | -- |
Total
| Total | -- | 142,565.93 | 142,565.93 | 360,456.98 (Note 1) | 8,219.1 | 354,786.72 | -- | -- | 0 | 0 | -- | -- |
| Description of and reasons for not meeting the scheduled progress or projected earnings by projects (including the reasons for selecting “Not applicable” for “Whether projected benefits are met”) | N/A |
Description ofsignificantchanges inprojectfeasibility
| Description of significant changes in project feasibility | N/A |
| Applicable |
Amount,purpose andprogress of useof over-raisedproceeds
| Amount, purpose and progress of use of over-raised proceeds | On October 12, 2020, the 13th meeting of the Second Board of Directors and the seventh meeting of the Second Board of Supervisors of the Company reviewed and approved the Proposal Regarding the Use of Some Over-raised Proceeds To Permanently Supplement the Working Capital, and agreed that the Company could allocate RMB 639 million of the over-raised proceeds to supplement the working capital permanently. The Fifth Extraordinary General Meeting of 2020 held on October 29, 2020, considered and approved the proposal. As of November 2, 2020, 639 million yuan of over-raised proceeds were used for replenishing the working capital. On November 27, 2020, the 15th meeting of the Second Board of Directors and the 9th meeting of the Second Board of Supervisors of the Company reviewed and approved the “Proposal Regarding the Use of Over-raised Proceeds for the Investment in Winner Industrial Park (Jiayu) Project”. The proposal was considered and approved by the 6th Extraordinary General Meeting of Shareholders in 2020 held on December 15, 2020. The main body of the Proposal is as follows: The Company plans to allocate RMB 400.0000 million of the over-raised proceeds to the investment in the Winner Industrial Park (Jiayu) Project. The total investment in Winner Industrial Park (Jiayu) Project is estimated at RMB 900.0000 million, and the implementing entity is Winner Medical (Jiayu) Co., Ltd. The project is located in Hubei Jiayu Economic Development Zone, adjacent to the Park’s 2nd Road in the north, 3rd Road in the south, Jiayu Avenue in the east, and Shijingpu Road in the west. The total land area is about 451 mu. The project relies on independent research and development of patented technology achievements, and based on the existing advantages of the Company in the industry, considers natural cotton as the primary raw material to innovate and improve degreasing and spunlace technology. It adopts comprehensive use of high-pressure “water needle” and other high-efficiency production technologies, and plans to build production projects about spunlace, wash care, wet tissues, medical cotton/gauze/non-woven fabrics, hand sanitizer and other products. As of June 30, 2024, the total investment of the above projects was 436,619,700. On November 27, 2020, the 15th meeting of the Second Board of Directors and the 9th meeting of the Second Board of Supervisors of the Company reviewed and approved the “Proposal Regarding the Use of Over-raised Proceeds for the Phase II Expansion Project of Winner Medical Wuhan”. The main body of the Proposal is as follows: The Company plans to allocate RMB 600.0000 million of the over-raised proceeds to the investment in the Phase II Expansion Project of Winner Medical Wuhan. The total investment in the Phase II Expansion Project of Winner Medical Wuhan totals RMB 1,500.0000 million, and the implementing entity is Winner Medical (Wuhan) Co., Ltd. The project includes nonwoven coil center, sterilization processing center, domestic medical sales and marketing center, intelligent distribution center of Hubei regional headquarters, regional headquarters in Central China and the second R&D center of the Group, which are fully invested and independently operated by the Company. Thanks to the project construction, the Company’s production capacity and market share will be increased, enabling it to become a global leader in overall technical level and product quality scale. As of June 30, 2024, the total investment of the above projects was 614,007,700. The Company held the sixth meeting of the third session of the Board of Directors and the fifth meeting of the third session of the Board of Supervisors on April 20, 2022 and reviewed and approved the Proposal Regarding the Use of Some Over-raised Proceeds To Permanently Supplement the Working Capital, and agreed that the Company could allocate RMB 494.19 million of the over-raised proceeds and the corresponding cash proceeds to permanently supplement the working capital (and subsequently, together with the proceeds from finance products, the supplemented working capital was RMB 535.4153 million). The 2021 Annual General Meeting held on May 13, 2022 considered and approved the proposal. |
| Applicable |
| Occurred in the previous year |
Investment ofProceedsChange ofprojectimplementationlocation
| Investment of Proceeds Change of project implementation location | On November 27, 2020, the 15th meeting of the Second Board of Directors and the 9th meeting of the Second Board of Supervisors of the Company reviewed and approved the “Proposal Regarding Capital Increase in Wholly Owned Subsidiaries with Some of the Proceeds, Changes to Implementing Entity of the Fundraising Projects, and Addition of Implementation Sites of Some Fundraising Projects”. The main body of the Proposal is as follows: To further improve the production, management efficiency and comprehensive utilization rate of resources, seize market development opportunities, and better promote the implementation of fundraising projects, the Company plans to use some of the proceeds to increase the capital of the wholly-owned subsidiaries and change the implementing entity of the fundraising projects, and add new implementation sites for the fundraising projects. Among them, the original implementing entity of the “R&D Center Construction Project” was Winner Medical (Wuhan) Co., Ltd. According to the Company’s development strategy and actual business needs, it plans to include Winner Medical Products Co., Ltd. as the implementing entity of “R&D Center Construction Project”, a fundraising project. A new implementation site in Winner Industrial Park, No. 660 Bulong Road, Longhua New District, Shenzhen is also included accordingly. |
| Applicable |
| Occurred in the previous year |
Investment ofProceedsAdjustment ofprojectimplementationmode
| Investment of Proceeds Adjustment of project implementation mode | The Company held the sixth meeting of the third session of the Board of Directors and the fifth meeting of the third session of the Board of Supervisors on April 20, 2022, and reviewed and approved the “Proposal on Adjusting the Implementation Mode, Extending the Construction Period and Permanently Bolstering the Working Capital of Some Fund Raising Projects”, which became effective after the consideration of the 2021 Annual General Meeting of Shareholders held on May 13, 2022. The main contents of the proposal were as follows: To quickly respond to market changes and improve the utilization efficiency of proceeds, the marketing network building project increased the investment related to online marketing of Shenzhen Purcotton Technology Co., Ltd., a wholly-owned subsidiary. Also, due to strategic adjustments, the marketing network building project terminated the investment related to network building of Shenzhen PureH2B Technology Co., Ltd., a wholly-owned subsidiary. |
| Applicable |
Pre-investmentand replacementof the proceedsinvestmentproject
| Pre-investment and replacement of the proceeds investment project | On February 26, 2021, the 18th meeting of the Second Board of Directors and the 12th meeting of the Second Board of Supervisors of the Company reviewed and approved the “Proposal on Opening bank Accounts and the Replacement of Self-financing Funds Pre-invested in New Projects with Excess Funds Raised”, respectively, and agreed that the Company could replace the self-raised funds pre-invested in the fundraising project with 100.1742 million yuan of proceeds. The Company’s investment in the project was verified by BDO CHINA SHU LUN PAN CERTIFIED PUBLIC ACCOUNTANTS LLP with a “Special Auditor’s Report on Proceeds Replacement of Winner Medical Products Co., Ltd.” (Xin Kuai Shi Bao Zi [2021] No. ZI10031) issued on February 23, 2021. Among them: the actual investment amount of the Company’s self-raised funds pre-invested in the proceeds investment project is 100.1742 million yuan, of which: 85.8942 million yuan was invested in the Wuhan Phase II expansion project, and 14.28 million yuan was invested in Winner Industrial Park (Jiayu) Project. In February and March 2021, the Company transferred 14.28 million yuan and 85.8942 million yuan, respectively from the special account for proceeds to replace the self-raised funds that had been invested in advance in the proceeds project. On October 12, 2020, the 13th meeting of the Second Board of Directors and the seventh meeting of the Second Board of Supervisors of the Company reviewed and approved the “Proposal Regarding the Use of Proceeds to Replace Self-raised Funds Pre-invested in the Fundraising Project”, respectively, and agreed that the Company could replace the self-raised funds pre-invested in the fundraising project with 233.7173 million yuan of proceeds. The Company’s investment in the project was verified by BDO CHINA SHU LUN PAN CERTIFIED PUBLIC ACCOUNTANTS LLP with a “Special Auditor’s Report on Proceeds Replacement of Winner Medical Products Co., Ltd.” (Xin Kuai Shi Bao Zi [2020] No. ZI10635) issued on October 12, 2020. Among them: the actual investment amount of the Company’s self-raised funds pre-invested in the proceeds investment project is 233.7173 million yuan, of which: 26.5062 million yuan was invested in advanced dressing production line construction project, 110.0794 million yuan was invested in marketing network building project, 50.2174 million yuan was invested in R&D center construction project, 46.9143 million yuan was invested in digital management system project. In October and November 2020, the Company transferred 73.4204 million yuan and 160.2968 million yuan, respectively from the special account for proceeds to replace the self-raised funds that had been invested in advance in the proceeds project. |
Temporaryreplenishmentof workingcapital with idleproceeds
| Temporary replenishment of working capital with idle proceeds | N/A |
| Applicable |
Amount of andreasons for thebalance ofproceedsresulting fromprojectimplementation
| Amount of and reasons for the balance of proceeds resulting from project implementation | On December 19, 2023, the Company convened the 18th Meeting of the Third Board of Directors and the 13th Meeting of the Third Supervisory Board. The agenda included a review and approval of the Proposal on Closing Part of the Project and Permanently Supplementing the Working Capital with the Surplus Raised Funds. The board agreed to conclude several fundraising investment projects, specifically the “Advanced Dressing Production Line Construction Project”, the “Phase II Expansion Project of Winner Medical Wuhan”, and the “Winner Industrial Park (Jiayu) Project”. The remaining raised funds, totaling RMB 91.7398 million (including interest income, with the exact amount to be confirmed by the bank settlement balance on the transfer date), will be designated for permanent working capital replenishment. The resolution came into effect after being deliberated and adopted at the first extraordinary general meeting of shareholders in 2024 held on January 8, 2024. As of June 30, 2024, the actual savings raised funds supplemented the working capital of RMB 86,360,500. |
Usage andpurposes ofproceeds notused during thecurrentreporting period
| Usage and purposes of proceeds not used during the current reporting period | As of June 30, 2024, the Company’s unused balance of raised funds was RMB 83,125,100, of which: the balance of cash management was RMB 55,000,000, and the balance deposited in the raised funds account was RMB 28,125,100. |
Problems orothercircumstancesin the use anddisclosure ofproceeds
| Problems or other circumstances in the use and disclosure of proceeds | None |
Note 1: The adjusted total investment shown in this table includes net wealth management income and interest income (after deducting expenses)that contribute to working capital, which is why the total investment exceeds the total raised funds.
Note 2: The benefit realized from the advanced dressing production line construction project this year is the net profit earned from January toJune, 2024. Since this net profit does not reflect the net profit of the project in 2024, it cannot be used to determine whether the expectedbenefits have been achieved.
Note 3: The Winner Industrial Park (Jiayu) Project uses both raised funds and self-owned funds for comprehensive investment, and theeconomic benefits generated by the raised funds are not calculated separately.
Note 4: Phase II Expansion Project of Winner Medical Wuhan uses raised funds and self-owned funds for comprehensive investment, and doesnot separately calculate the economic benefits generated by raised funds.
(3) Changes in proceeds projects
√Applicable □ Not applicable
Unit: ‘0,000 yuan
| Project after change | Corresponding original committed projects | Total amount of proceeds to be invested in the changed project (1) | Actual investment amount in the current reporting period | Actual cumulative investment amount as of the end of the reporting period (2) | Investment progress as of the end of the reporting period (3) = (2)/(1) | The project reaches the intended usable status date | Benefits realized in the current reporting period | Whether projected benefits are met | Whether there is a significant change in the feasibility of the changed project |
Marketingnetworkconstructionproject
| Marketing network construction project | Marketing network construction project | 61,804.04 | 3,457.17 | 65,606.64 | 106.15% | September 1, 2024 | 0 | N/A | No |
R&D Centerconstructionproject
| R&D Center construction project | R&D Center construction project | 21,542.15 | 1,310.46 | 20,267.44 | 94.08% | September 1, 2024 | 0 | N/A | No |
Industrial ParkProjectWinnerMedical(Jiayu)Technology
| Industrial Park Project Winner Medical (Jiayu) Technology | Industrial Park Project Winner Medical (Jiayu) Technology | 42,000 | 155.83 | 43,661.97 | 103.96% | December 01, 2023 | 0 | Not applicable (Note 1) | No |
Total
| Total | -- | 125,346.19 | 4,923.46 | 129,536.05 | -- | -- | 0 | -- | -- |
Reasons for change, decision-makingprocedures and information disclosure (byspecific project)
| Reasons for change, decision-making procedures and information disclosure (by specific project) | The Company held the sixth meeting of the third session of the Board of Directors and the fifth meeting of the third session of the Board of Supervisors on April 20, 2022, and reviewed and approved the Proposal on Adjusting the Implementation Mode, Extending the Construction Period and Permanently Bolstering the Working Capital of Some Fund Raising Projects, which became effective after the consideration of the 2021 Annual General Meeting of Shareholders held on May 13, 2022. The investment in the marketing network building project of PureH2B was terminated. The remaining proceeds not used for the marketing network building project amounted to approximately RMB 89.6426 million yuan (including the income of financial products), which will be used for permanently replenishing the working capital (the actual amount to be replenished together with the proceeds of the financial products will be RMB 91.0234 million). (Announcement No.: 2022-021) The Company held the twelfth meeting of the third session of the Board of Directors and the ninth meeting of the third session of the Board of Supervisors on May 5, 2023, and reviewed and approved the Proposal on Adjusting the Use of Proceeds, Extending the Construction Period of Some Fund Raising Projects, which became effective after the consideration of the 2022 Annual General Meeting of Shareholders held on May 16, 2023. The proceeds from the research and development center construction project should be adjusted among the implementation entities, part of the proceeds from the R&D Center Construction Project shall be moved to the Winner Industrial Park (Jiayu) Project. (Announcement No.: 2023--018) |
Information on and reasons for not meeting thescheduled progress or projected earnings (byspecific project)
| Information on and reasons for not meeting the scheduled progress or projected earnings (by specific project) | N/A |
Description of significant changes in thefeasibility of the changed project
| Description of significant changes in the feasibility of the changed project | There has been no material change in the feasibility of the marketing network building project, the R&D center construction project and the Winner Industrial Park (Jiayu) Project |
Note 1: The Winner Industrial Park (Jiayu) Project uses both raised funds and self-owned funds for comprehensive investment, and theeconomic benefits generated by the raised funds are not calculated separately.
6. Entrusted Wealth Management, Derivatives Investment and Entrusted Loans
(1) Information of entrusted wealth management
√Applicable □ Not applicable
Overview of entrusted wealth management during the reporting period
Unit: ‘0,000 yuan
| Specific type | Source of funds for entrusted wealth management | Amount incurred in entrusted wealth management | Outstanding balance | Unrecovered overdue amount | The amount of impairment for overdue wealth management |
Bank financialproducts
| Bank financial products | Proceeds | 5,500 | 5,500 | 0 | 0 |
Bank financialproducts
| Bank financial products | Self-owned funds | 132,100 | 132,100 | 0 | 0 |
Trust financialproducts
| Trust financial products | Self-owned funds | 110,000 | 110,000 | 0 | 0 |
Total
| Total | 247,6001* | 247,600 | 0 | 0 |
Note 1* The amount of entrusted wealth management here is the balance of unexpired wealth management products.
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
□ Applicable √ Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable √ Not applicable
(2) Derivatives investment
□ Applicable √ Not applicable
No derivative investment in the Company during the reporting period
(3) Information of entrusted loans
□ Applicable √ Not applicable
The Company had no entrusted loan during the reporting period.
VIII. Sales of Significant Asset and Equity
1. Information of Significant Assets for Sale
□ Applicable √ Not applicable
The Company did not sell any significant assets during the reporting period.
2. Information of Significant Equity for Sale
□ Applicable √ Not applicable
IX. Analysis of Major Holding Companies and Invested Companies
√Applicable □ Not applicable
Information on major subsidiaries and invested companies with an impact of 10% or more on the Company’s net profit
Unit: yuan
| Company name | Company type | Principal operation | Registered capital | Total assets | Net assets | Revenue | Operating profit | Net profit |
WinnerMedical(Huanggang) Co.,Ltd.
| Winner Medical (Huanggang) Co., Ltd. | Subsidiaries | Mainly responsible for the production of large rolls of cotton and cotton tissues | 259,459,200.00 | 1,181,496,880.84 | 935,911,549.22 | 574,370,691.84 | 87,362,078.62 | 75,866,556.09 |
Acquisition and disposal of subsidiaries during the reporting period
√Applicable □ Not applicable
| Company name | Method of acquisition and disposal of subsidiaries during the reporting period | Impact on overall production operations and performances |
Zhejiang Honglan Technology Co., Ltd.
| Zhejiang Honglan Technology Co., Ltd. | Acquisition | No material impact |
Winner Medical Biomedical Technology(Wuhan) Co., Ltd.
| Winner Medical Biomedical Technology (Wuhan) Co., Ltd. | Establishment | No material impact |
Purecotton Agricultural Technology (Wuhan)Co., Ltd.
| Purecotton Agricultural Technology (Wuhan) Co., Ltd. | Establishment | No material impact |
Description of major holding companies and invested companies
X. Structured Subjects Controlled by the Company
□ Applicable √ Not applicable
XI. Risks Faced by the Company and Countermeasures
1. Risk of Changes in Industry Policies and Standards
Medical device is a key supervised industry, that directly affects users’ life and health safety. In recent years, as China further deepens thereform of the medical and health system, relevant government departments have introduced a series of regulations and policies on industrystandards, bidding, price formation mechanisms, circulation systems, etc., which have a wide and profound impact on the development of themedical device industry. If the Company fails to adapt to profound changes in industry policies promptly, it may impact the Company’soperations.
2. Risk of Raw Material Price Fluctuations and Countermeasures
The Company’s main raw materials are cotton, cotton yarn and cotton greige fabric for medical use made from cotton. Cotton prices areaffected by multiple factors such as planting area, natural production, inventory cycle, agricultural price policy of origin, consumer demandand even futures prices. In addition, the prices of imported cotton are also affected by other factors such as international trade policies andexchange rate fluctuations. If the purchase price of raw materials such as cotton continues to rise in the future, it will have a greater costpressure on the Company’s production and operation. If the Company fails to the adjustment of the sales price with that of the raw materialprice, it may harm the stability of the Company’s profitability.
To manage the risk of cotton price fluctuations, the Company employs a cotton procurement stocking mechanism. Typically, it procures cottonat relatively low prices. When cotton prices increase to a certain level, the Company adjusts the sales price accordingly and controls the salesprice discount to mitigate the adverse impact on profitability. The Company will invest in cotton derivative products at the appropriate time tomitigate the impact of cotton price fluctuations on its performance.
3. Impairment Risk of Goodwill and Countermeasures
To establish a comprehensive solution for medical consumables, since 2022, the Company acquired Longterm Medical, Winner Medical(Hunan) and Winner Guilin to improve its industrial chain. As of June 30, 2024, the carrying value of goodwill amounted to RMB 0.867 billion,representing 7.58% of the equity attributable to the owners of the parent company. The Company will conduct impairment tests on goodwillat the end of each year and make provisions for impairment based on the results of these tests. The risk of goodwill impairment could negativelyimpact net profit. To deal with the impairment risk of goodwill, the Company will make more efforts to strengthen its business management,improve its business performance, and reduce the risk of asset impairment.
4. Exchange Rate Risks and Countermeasures
Medical consumables are the main exports of the Company, which are settled in major international currencies such as US dollars. In the firsthalf of 2024, the Company’s foreign sales amount in the overall revenue accounted for 21.61%. In recent years, with the accelerated pace ofChinese Yuan internationalization and further marketization of the Chinese Yuan exchange rate formation mechanism, the exchange rateflexibility of Chinese Yuan has increased. Fluctuations in the RMB exchange rate will, on the one hand, affect the Company’s product exportsales prices; on the other hand, it will also cause the Company to generate exchange gains and losses. Suppose there is a significant appreciationof Chinese Yuan in the future. In that case, it will affect the Company’s price competitiveness in overseas markets, and cause exchange losses,which will adversely affect the Company’s revenue and profits.
To reduce the impact of exchange rate fluctuations on the Company’s performance, (1) for long-term stable customers, the Company has anagreed price adjustment mechanism, and in case of significant fluctuations in key elements affecting the price, the price shall be adjustedgenerally according to the agreed price adjustment mechanism; and at the same time, the Company adjusts the quotation cycle for new ordersreceived, shortens the quotation cycle, and adjusts the quotation exchange rate on time; Secondly, the Company conducts forward settlementand sale of foreign exchange business for hedging purposes according to the market situation. It locks in the forward settlement exchange ratein advance to reduce the risk and hedge against exchange rate fluctuations in international business. Thirdly, the Company will enhance researchand analysis of exchange rates, closely monitor changes in the international market environment, adjust business strategies as necessary, andminimize the risk of exchange rate fluctuations.
5. Risk of not Receiving Reimbursement for the Investment Project of Winner Medical (Heyuan) and Countermeasures
Due to the planning of the square of Heyuan High-speed Railway Station and the surrounding high-speed railway new town along the Jiangxi-Shenzhen High-speed Railway, the “Agreement on Investment and Construction of Medical Package and Cotton Household Goods ProductionProject” entered into by and between the Company and the People’s Government of Zijin County, Heyuan City in May 2016 could not befulfilled. In November 2019, the International Arbitration Court in Ganjiang New District issued an “Award” confirming the termination ofthe “Agreement on Investment and Construction of Medical Package and Cotton Household Goods Production Project”, and the People’sGovernment of the Zijin County shall compensate the Company for economic losses of 550 million yuan, with 50% to be paid by the People’sGovernment of Zijin County by December 31, 2019 and 50% by February 29, 2020. Since the judgment came into effect, the Company hasreceived part of the money paid by Zijin County Government every year. As of the disclosure date of the report, the Company has received aland transfer deposit of RMB 3 million and a compensation payment of RMB 330 million returned by the People’s Government of Zijin County.There is a risk that the remaining RMB 220 million may not be received on time per the Award. The Company has made a provision for baddebts following the accounting policy. The court has now resumed enforcement. The Company is closely following up on the subsequentpayment plan of the People’s Government of Zijin County, Heyuan City.
6. Risks Associated with the Urban Renewal Project of Winner Industrial Park
In July 2023, the Company signed an agreement on relocation compensation and resettlement (hereinafter referred to as the “originalagreement”) with Shenzhen Xingda Real Estate Development Co., Ltd. (hereinafter referred to as “Xingda Company” or “Partner”) to facilitateurban renewal and transformation (hereinafter referred to as the “Project”) on the land and above-ground buildings of the Winner IndustrialPark in Shenzhen Longhua District. However, due to significant changes in the real estate market, the project was postponed to January 2024.To ensure the project moves forward smoothly, minimize land idle time, and reduce uncertainties in construction, the Company engaged inseveral rounds of discussion with its partners. A preliminary solution was formulated, leading to an intention to sign a supplementary agreement.Under this agreement, the office and commercial property areas allocated to the Company will remain consistent with the original agreement,while the residential property area and compensation amount will be tied to the actual average transaction price of residential propertiesobtained by Xingda Company. On July 26, 2024 and August 12, 2024, the Company held the 23rd Meeting of the 3rd Board of Directors andthe 2nd Extraordinary Shareholders’ Meeting in 2024, respectively, and reviewed and approved the Proposal on Signing the SupplementaryAgreement on Relocation Compensation and Resettlement of Urban Renewal Units in Winner Industrial Park. The supplementary agreementhas now been signed.
Since the residential property area and compensation amount for the Company are tied to the actual average transaction price of residentialproperties, these figures remain uncertain amid significant fluctuations in the real estate market. It is expected that the signing of this contractwill not impact the Company’s 2024 financial statements. After signing the supplementary agreement, both parties will continue to workdiligently on key processes, including confirming the main body, building demolition, applying for construction land planning permit, andsigning land contracts. However, due to the long implementation period of this project, the Company will actively promote it, and strengthencommunication and process control to mitigate uncertainties related to changes in urban renewal laws and policies, urban planning, partnerperformance, market conditions, pricing, and force majeure events.
XII. Registration Forms for Receptions of Surveys, Communication, Interviews and OtherActivities during the Reporting Period
√Applicable □ Not applicable
| Time | Location | Method | Types of objects | Objects | Main contents of discussions and documents provided | Basic information index of surveys |
January 30, 2024
| January 30, 2024 | Headquarter conference rooms | Online communication on network platform | Institutions | 69 institutional investors including China Southern Fund, Maxwealth Fund and Star Rock Asset Management | Company 2023 Annual Performance Forecast | For details, please refer to SZSE Interactive Ease |
May 08, 2024,May 09, 2024
| May 08, 2024, May 09, 2024 | Shenzhen Panorama Roadshow Hall | Others | Institution, Individual | 78 investors including Da Cheng Fund, CICC and Huatai Securities | The Company’s operations for fiscal 2023 and the first quarter of 2024 | For details, please refer to SZSE Interactive Ease |
June 14, 2024 -June 21, 2024
| June 14, 2024 - June 21, 2024 | Headquarter conference rooms | Field surveys | Institutions | Huaan Securities, Tai Pu Investment, Western Securities and other investors | Update on the company’s operations | For details, please refer to SZSE Interactive Ease |
XIII. Progress on the “Dual Enhancement of Quality and Returns” Action Plan
Has the Company disclosed its action plan for “Dual Enhancement of Quality and Returns”?
√ Yes □ No
The company elaborated on its concept of "Dual Enhancement of Quality and Returns" by focusing on developing a high-quality core business,strengthening corporate governance, fulfilling social responsibilities, ensuring transparent information disclosure, and prioritizing investorreturns.
In terms of advancing high-quality core business development, the Company always upholds the vision of “promoting health, nurturing life,making a better world”, with a mission to “pioneer the movement toward optimal health and fostering harmony between humanity and theenvironment”. It adheres to the four corporate values of “hard work, self-criticism, exploration and innovation, and sustainable development”.The Company operates under the strategic direction of “with leading products as the direction, innovative R&D as the core, brand marketingas the driver, digital operation as the foundation, intelligent manufacturing as the weapon, and high-quality, high-efficiency, high-performanceand high-return talents as the guarantee, to build a new chapter of high-quality development”. Winner Medical will stay active to seekopportunities for outward mergers and acquisitions to make great strides towards the strategic goal of “leading in medical consumables andproviding one-stop medical consumables solutions”. The Company experienced robust growth in revenue from its core medical products, whilePurcotton expanded its offline store network. Moreover, the Company significantly increased its patent portfolio and actively contributed tothe development of national, industry, and group standards.
Regarding corporate governance and social responsibility, the Company continued to strengthen its governance structure, internal controls,and risk management practices. These initiatives facilitated informed decision-making and sustained corporate development while safeguardingshareholders’ interests. The Company has been recognized with honors such as the “Best Practices of Director’s Office” and “5A LevelPerformance Evaluation of Secretary of the Board of Directors” by the China Listed Companies Association (CLCA) for two consecutive years.For three years running, the Company has voluntarily published its Corporate Social Responsibility Report or Environmental, Social, andGovernance Report, demonstrating its impactful social responsibility practices. As a member of the United Nations Global Compact, theCompany actively pursues sustainable development strategies and has received the 2021 United Nations Global Compact Best Practice Casesfor Chinese Enterprises award. It has also been honored with the “Excellent Practice Cases of ESG for Listed Companies” by the China ListedCompanies Association for three consecutive years.
Regarding information disclosure, the Company not only meets statutory obligations in accordance with securities laws and regulations butalso proactively shares additional valuable information for investors. The Company has been featured as an outstanding case in the ShenzhenStock Exchange GEM Board’s annual report for two consecutive years. Furthermore, it has consistently received an A rating in informationdisclosure assessments by the Shenzhen Stock Exchange since its listing in FY2021 and FY2022.
In terms of investor returns, the Company convened the Second Meeting of the 4th Board of Directors and the 2nd Meeting of the 4th Boardof Supervisors on August 26, 2024 to review and approve the Proposal on the Profit Distribution Plan for the Half Year of 2024. Based on the582,329,808 shares deducted from the repurchased shares, the Company plans to distribute a cash dividend of RMB 4.00 (including tax) to allshareholders for every 10 shares, without capitalization and bonus shares. The total cash dividends paid amounted to RMB 230 million (60.64%of net income attributable to shareholders of the parent company in the consolidated income statement). From the listing in September 2020 tothe disclosure date of this report, the Company has implemented a total of RMB 2.47 billion in cash dividends (including the amount of cashdividends to be implemented in the first half of 2024) and RMB 690 million in share repurchase, totaling RMB 3.16 billion, accounting for
88.9% of the net initial raised funds. Among them, 6,094,659 repurchased shares (accounting for 1.03% of the Company’s total share capitalbefore cancellation) were canceled in March 2024. In July 2024, the Company convened a shareholders’ meeting again to consider and passthe proposal of share cancelation, and planned to cancel an additional 5,962,900 repurchased shares. In addition, on January 30, 2024, theCompany disclosed the Announcement on the Plans of Certain Directors, Supervisors, and Senior Management of the Company to IncreaseTheir Purchases of the Company’s Shares. Mr. Fang Xiuyuan, the director, deputy general manager and chief financial officer, Ms. ChenHuixuan, the deputy general manager and secretary of the board, Ms. Xu Xiaodan, the former director, Ms. Liu Hua and Ms. Zhang Li, theformer deputy general manager, and other directors, supervisors, and senior managers planned to increase their holdings of the Company’sshares by a total of RMB 3.15 million to 6.3 million. As of the disclosure date of this report, the foregoing share increase plan has beenimplemented, and the directors, supervisors, and senior managers have increased their shareholdings by a total of 143,100 shares and RMB
4.5341 million.
Corporate governance
Section Ⅳ Corporate Governance
I. Information about the Annual General Meeting of Shareholders and Extraordinary GeneralMeeting of Shareholders Held during the Reporting Period
1. General Meeting of Shareholders during the Reporting Period
| Meeting session | Meeting type | Investor participation proportion | Convening date | Date of disclosure | Resolutions of the meeting |
2023 AnnualGeneral Meetingof Shareholders
| 2023 Annual General Meeting of Shareholders | Annual general meeting of shareholders | 74.85% | May 21, 2024 | May 21, 2024 | Consideration and adoption of Proposal on the <Annual Report and Summary for 2023>, Proposal on the Plan on the Profit Distribution for 2023, etc. |
The 1
st
ExtraordinaryGeneral Meetingof Shareholders in2024
| The 1st Extraordinary General Meeting of Shareholders in 2024 | Extraordinary general meeting of shareholders | 73.66% | January 08, 2024 | January 08, 2024 | Consideration and approval of Proposal on the Repurchase and Cancellation of Remaining Shares in the Special Securities Account and Proposal on Closing Part of the Project and Permanently Supplementing the Working Capital with the Surplus Raised Funds, etc. |
2. The Preferred Shareholders with Voting Rights Restored Request an Extraordinary General Meeting of Shareholders
□ Applicable √ Not applicable
II. Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
| Name | Position held | Type | Date | Reasons |
Xu Xiaodan
| Xu Xiaodan | Former Director | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Guo Zhenwei
| Guo Zhenwei | Former Director | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Xie Jiawei
| Xie Jiawei | Former Independent director | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Peng Jianfeng
| Peng Jianfeng | Former Independent director | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Key Ke Liu (Liu Ke)
| Key Ke Liu (Liu Ke) | Former Independent director | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Liu Hua
| Liu Hua | Former supervisor | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
| Name | Position held | Type | Date | Reasons |
Zhang Li
| Zhang Li | Former Deputy General Manager | Departure on expiration of term of office | August 12, 2024 | Departure on expiration of term of office |
Zhang Yan
| Zhang Yan | Director (Former Supervisor) | Elected | August 12, 2024 | General meeting election |
Liao Meizhen
| Liao Meizhen | Director | Elected | August 12, 2024 | General meeting election |
Chen Junfa
| Chen Junfa | Independent director | Elected | August 12, 2024 | General meeting election |
Wang Zhifang
| Wang Zhifang | Independent director | Elected | August 12, 2024 | General meeting election |
Yang Xiangliang
| Yang Xiangliang | Independent director | Elected | August 12, 2024 | General meeting election |
Wu Kezhen
| Wu Kezhen | Supervisor | Elected | August 12, 2024 | General meeting election |
Zhao Xia
| Zhao Xia | Supervisor | Elected | August 12, 2024 | General meeting election |
Liao Guanlai
| Liao Guanlai | Deputy general manager | Appointment | August 12, 2024 | Appointment by the Board of Directors |
III. Profit Distribution and Share Capital Increase from Capital Surplus during the ReportingPeriod
√Applicable □ Not applicable
| Bonus shares per 10 shares (shares) | 0 |
Dividend per 10 shares (RMB) (tax included)
| Dividend per 10 shares (RMB) (tax included) | 4.00 |
Share capital base in distribution plan (shares)
| Share capital base in distribution plan (shares) | 582,329,808 |
Amount of cash dividend (yuan) (including tax)
| Amount of cash dividend (yuan) (including tax) | 232,931,923.20 |
Amount of cash dividend in other forms (e.g. share repurchase) (yuan)
| Amount of cash dividend in other forms (e.g. share repurchase) (yuan) | 194,943,744.29 |
Total cash dividends (including other methods) (yuan)
| Total cash dividends (including other methods) (yuan) | 427,875,667.49 |
Distributive profit (yuan)
| Distributive profit (yuan) | 4,627,174,936.42 |
Proportion of total cash dividends (including other methods) in total profit distribution
| Proportion of total cash dividends (including other methods) in total profit distribution | 100.00% |
This cash dividends
This cash dividendsOthers
| Others |
Detailed description of the proposal of profit distribution or share capital increase from accumulation fund
Detailed description of the proposal of profit distribution or share capital increase from accumulation fund
In the first half of 2024, the net profit attributable to shareholders of the parent company in the consolidated income statement of the Companywas RMB 384,150,379.21, and the net profit in the income statement of the parent company was RMB 21,300,746.82; As of June 30, 2024,the undistributed profit of the parent company was RMB 4,627,174,936.42.On the disclosure date of the distribution plan, the company’s total share capital stood at 588,292,708 shares, with 5,962,900 shares held ina special securities account for repurchase. Deducting these repurchased shares, the total share count amounted to 582,329,808 shares. It wasplanned to distribute a cash dividend of 4.00 yuan per 10 shares to all shareholders (tax included), with no capital increase or bonus shares.The total cash dividend amounted to 232,931,923.20 yuan, representing 60.64% of the net profit attributable to shareholders of the parentcompany as per the consolidated income statement.
In the first half of 2024, the net profit attributable to shareholders of the parent company in the consolidated income statement of the Companywas RMB 384,150,379.21, and the net profit in the income statement of the parent company was RMB 21,300,746.82; As of June 30, 2024,the undistributed profit of the parent company was RMB 4,627,174,936.42.On the disclosure date of the distribution plan, the company’s total share capital stood at 588,292,708 shares, with 5,962,900 shares held ina special securities account for repurchase. Deducting these repurchased shares, the total share count amounted to 582,329,808 shares. It wasplanned to distribute a cash dividend of 4.00 yuan per 10 shares to all shareholders (tax included), with no capital increase or bonus shares.The total cash dividend amounted to 232,931,923.20 yuan, representing 60.64% of the net profit attributable to shareholders of the parentcompany as per the consolidated income statement.
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Plan orOther Employee Incentive Measures
√Applicable □ Not applicable
1. Share Incentive
The Company held the 15th meeting of the Second Board of Directors and the 9th meeting of the Second Board of Supervisors on November27, 2020, as well as the 6th Extraordinary General Meeting of Shareholders 2020 on December 15, 2020, respectively, deliberated and approvedthe Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and Its Abstract and related matters. The General Meeting of Shareholdersauthorized the Board of Directors to determine the grant date of restricted shares, and relevant matters which is necessary to grant restrictedshares to the incentive object and go through the procedures for granting restricted shares when the incentive object meets the conditions. Fordetails, please refer to relevant announcements disclosed by the Company on CNINFO.com (http://www.cninfo.com.cn) on December 16,2020 and November 30, 2020.
On December 18, 2020, the Company held the 17th meeting of the Second Board of Directors and the 11th meeting of the Second Board ofSupervisors respectively, deliberated and approved the Proposal on the Matters Related to the Adjustment of 2020 Restricted Shares IncentivePlan and the Proposal on the First Grant of Restricted Stocks to the Incentive Objects, and determined that December 18, 2020 will be thegrant date of the incentive plan, 5.833 million restricted shares will be granted to 1,036 eligible incentive objects. For details, please refer torelevant announcement disclosed by the Company on CNINFO.com (http://www.cninfo.com.cn) on December 22, 2020.
The Company held the 6th meeting of the Third Board of Directors and the 5th meeting of the Third Board of Supervisors on April 20, 2022,as well as the Annual General Meeting of Shareholders 2021 on May 13, 2022, respectively, deliberated and approved the Proposal on theRevocation of Part of Granted Restricted Shares Not Yet Vested. 3.366925 million granted but unvested restricted shares were revoked, becausesome incentive recipients could not meet the incentive conditions due to their demission or holding the post of supervisors, while the Companyfailed to complete the incentive assessment targets for 2021. For details, please refer to relevant announcements disclosed by the Company onCNINFO.com (http://www.cninfo.com.cn) on April 22, 2022.
The Company convened the 11
th meeting of the third board of directors and the 8
thmeeting of the third board of supervisors on April 23, 2023,to consider and adopt the Proposal on the Revocation of Part of Granted Restricted Shares Not Yet Vested. Due to the resignation of 95additional incentive targets and 419 incentive targets failing to meet individual-level performance appraisal standards in 2022 under theCompany’s 2020 Restricted Stock Incentive Plan, a total of 1,303,935 shares of granted restricted stocks are planned to be voided. On the sameday, the Proposal on Achieving Vesting Conditions for the Second Vesting Period of the 2020 Restricted Stock Incentive Plan was reviewedand approved. The conditions for the second vesting period of the 2020 Restricted Stock Incentive Plan have been met, with 1,162,140 sharesof Class II restricted shares vested.
On April 23, 2024, the Company conducted the 20
th meeting of the third board of directors and the 15
th
meeting of the third board of supervisors.During this session, the Proposal on the Revocation of Part of Granted Restricted Shares Not Yet Vested was reviewed and approved. It wasconfirmed by the Company that incentive recipients who met the assessment standards during the second vesting period of the first-time grantunder this incentive plan have chosen to forgo this vesting opportunity. The Company intends to void a total of 1,162,140 restricted shares thathave been granted but have not yet vested.
2. Implementation of Employee Stock Ownership Plan
√Applicable □ Not applicable
All effective employee stock ownership plans implemented during the reporting period
| Employee Scope | Total number of employees | Total number of stocks held (shares) | Change | Proportion of total share capital of listed companies | Sources of funds to implement the plan |
Core employees atdirector level or above (ifany)
| Core employees at director level or above (if any) | 14 | 505,000 | None | 0.08% | Incentive funds raised by employees themselves and provided by the Company |
Shareholding status of directors, supervisors, and senior managers in employee stock ownership plans during the reporting period
| Name | Position | Number of shares held at the beginning of the period (shares) | Number of shares held at the end of the period (shares) | Proportion of total share capital of listed companies |
None
| None | None | 0 | 0 | 0.00% |
Changes in asset management institutions during the reporting period
□ Applicable √ Not applicable
Changes in equity caused by holders’ disposal of shares during the reporting period
□ Applicable √ Not applicable
Exercise of shareholders’ rights during the reporting period
None
Other pertinent circumstances and explanations regarding the employee stock ownership plan during the reporting period.
□ Applicable √ Not applicable
Changes in the membership of the Employee Stock Ownership Plan Management Committee
□ Applicable √ Not applicable
The financial impact of employee stock ownership plans on listed companies during the reporting period and the associated accountingtreatment
√Applicable □ Not applicable
The cumulative amount of equity-settled share-based payment included in capital reserves is RMB 5,090,677.24, and the total expensesrecognized for equity-settled share-based payment in this period are RMB 2,908,958.42.
Termination of employee stock ownership plans during the reporting period
□ Applicable √ Not applicable
Other description:
None
3. Other Employee Incentive Measures
□ Applicable √ Not applicable
Environment and Social Responsibility
Section V Environmental Protection and Social Responsibility
I. Significant Environmental Issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protection authorities
√ Yes □ No
Environmental protection-related policies and industry standards
The Company strictly complies with environmental protection related laws and regulations in its daily production and operation, including theEnvironmental Protection Law of the People’s Republic of China, the Law of People’s Republic of China on Environmental Impact Assessmentand Protection, the Catalogue for Classified Management of Environmental Impact Assessment of Construction Projects (2021 Version), theLaw of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the People’s Republic of China onPrevention and Control of Environmental Pollution by Solid Waste, the Water Pollution Prevention and Control Law of the People’s Republicof China, the Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution, Regulations onAdministration of Pollutant Discharge Permits, the Regulations on Environmental Protection Management of Construction Projects andInterim Measures for Environmental Protection Acceptance of Construction Projects, and the Measures for the Management of AutomaticPollution Sources Monitoring and Guidelines for Automatic Pollution Sources Monitoring and Management Technology of Hubei Province;and strictly implements relevant national emission standards, including the Discharge Standards of Water Pollutants for Dyeing and Finishingof Textile Industry (GB4287-2012), the Emission Standard of Pollutants for Rubber Products Industry (GB27632-2011), the IntegratedWastewater Discharge Standard (GB8978-1996), the Integrated Emission Standard of Air Pollutants (GB16297-1996), the Emission Standardof Pollutants for Synthetic Resin Industry (GB31572-2015), the Emission Standard of Air Pollutants for Boiler (GB13271-2014), the EmissionStandards for Odor Pollutants (GB14554-1993), and the Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008).
Status of administrative licenses for environmental protection, project licenses
| Branch | Project name | Approval unit | Approval time | Acceptance |
WinnerMedical(Chongyang)
| Winner Medical (Chongyang) | Medical degreasing gauze series production line | Chongyang County Environmental Protection Bureau | September 21, 2005 | August 22, 2008 |
| Sterilization packaging and sterilization production line project | March 29, 2013 | June 26, 2014 | ||
| Qingshan plant construction project | November 18, 2015 | March 01, 2016 | ||
| Qingshan sewage treatment plant project | Xianning Environmental Protection Bureau | March 01, 2017 | March 20, 2017 | |
| Newly built 6390M2 workshop project | Registration | May 17, 2017 | / |
WinnerMedical(Jiayu)
| Winner Medical (Jiayu) | Annual output of 800 tons of degreased cotton project | Jiayu County Environmental Protection Bureau | March 20, 2013 | September 20, 2014 |
| Winner Medical Purcotton construction project | December 25, 2014 | September 28, 2017 | ||
| Environmental Impact Assessment Report of Winner Industrial Park (Jiayu) Project | Xianning Ecological Environment Bureau | March 15, 2021 | Under construction |
WinnerMedical(Yichang)
| Winner Medical (Yichang) | Annual output of 90 million meters of medical gauze project | Zhijiang Environmental Protection Bureau | December 19, 2014 | October 14, 2015 |
| Branch | Project name | Approval unit | Approval time | Acceptance |
WinnerMedical(Tianmen)
| Winner Medical (Tianmen) | Pure cotton spunlace non-woven fabric and medical dressing products production project | Tianmen Environmental Protection Bureau | March 11, 2015 | Phase I January 25, 2017; Phase II May 10, 2020; Phase III December 31, 2022 |
| Medical dressing production line automation upgrading project | January 19, 2016 | March 23, 2018 | ||
| Medical product sterilization center project | Tianmen Ecological Environment Bureau | January 17, 2022 | December 31, 2022 |
WinnerMedical(Jingmen)
| Winner Medical (Jingmen) | 30 million meters/year medical gauze bleaching and refining production line expansion project | October 18, 1999 | December 14, 2001 | |
| Reform and expansion project of gauze pads, gauze sheets and shrinkage bandages | Jingmen Environmental Protection Bureau | September 23, 2003 | August 03, 2005 | |
| Annual output of 1500t de-bleaching medical gauze project | Jingmen Dongbao District Environmental Protection Bureau | April 05, 2006 | September 27, 2017 | |
| Winner Medical Purcotton construction project | Jingmen Environmental Protection Bureau | October 19, 2016 | September 27, 2017 | |
| Expansion project of deblended gauze production line (Purcotton phase II expansion project) | Jingmen Ecological Environment Bureau | December 24, 2020 | Under construction |
WinnerMedical(Huangg
ang)
| Winner Medical (Huanggang) | Phase I of pure cotton spunlace non-woven fabric production project | Hubei E.P.D. | August 5, 2011 | May 8, 2012; |
| Phase II of pure cotton spunlace non-woven fabric production project | Huanggang Environmental Protection Bureau | December 31, 2015 | January 24, 2017 | |
| New project of Purcotton distribution center | June 27, 2016 | October 10, 2018 | ||
| Boiler conversion project foam coil production line project (expansion) | January 29, 2018; February 05, 2018 | November 14, 2019; October 08, 2018 | ||
| High-end wound dressing production line construction project | November 06, 2018 | Construction has not started yet | ||
| Medical protective products renovation project | July 20, 2020 | October 19, 2021 |
WinnerMedical(Wuhan)
| Winner Medical (Wuhan) | Hubei Winner Medical Co., Ltd. cotton spun laced nonwovens and products production project | Wuhan Xinzhou District Administration and Approval Bureau | July 12, 2017 | Phase I January 18, 2020; Phase II June 13, 2023 |
| R&D Center construction project | December 24, 2018 | Construction has not started yet | ||
| New electron accelerator irradiator project | Wuhan Environmental Protection Bureau | January 15, 2018 | Phase I May 15, 2020; Phase II November 19, 2021 | |
| Medical protective equipment renovation project | Xinzhou District Administrative Approval Bureau | May 07, 2021 | Under construction | |
| Winner Medical phase II expansion project | Wuhan Ecological Environment Bureau | June 21, 2022 | Under construction | |
| Innovation research institute construction project | Administration and Approval Bureau | August 09, 2022 | June 13, 2023 |
| Branch | Project name | Approval unit | Approval time | Acceptance |
WinnerMedical(Shenzhen)
| Winner Medical (Shenzhen) | Pingshan Songze Industrial Park New Project of Shenzhen Branch of Winner Medical Co., Ltd. | Shenzhen Ecological Environment Bureau Pingshan Administration | November 26, 2021 | March 18, 2022 |
| Expansion Project of Shenzhen Branch of Winner Medical Co., Ltd. | August 11, 2023 | December 01, 2023 |
WinnerGuilin
| Winner Guilin | Expansion and Technical Transformation Project of Medical Glove Production Line Capacity | Administrative Approval Bureau of Guilin City | December 30, 2020 | March 2022 |
| Annual output of 200 million pairs of TPU-covered medical gloves, automation upgrading and energy saving retrofit project | Guilin Ecological Environment Bureau | May 15, 2023 | Under construction |
ZhejiangLongterm
| Zhejiang Longterm | Annual output of 5 million sheets of medical hygiene materials and accessories, 100 million bottles of various types of skin care products technology reform project | Deqing County Environmental Protection Bureau | October 24, 2016 | September 29, 2017 |
| The annual production includes 300 million tablets of medical hygiene materials and accessories, 5 million bottles of disinfectants, 15 million tablets of Class I and II medical care products and infection control medical consumables, and 10 million packs of hygiene products. Additionally, we produce 20,000 sets of rehabilitation therapy instruments and equipment, 100,000 units of skin cleaning and care products, and 5.7 million buttons/branches for the minimally invasive surgical consumables project. | Deqing Branch of Huzhou Ecological Environment Bureau | March 04, 2019 | February 11, 2022 | |
| Annual output of 1.2 billion povidone-iodine swabs, 35 million bottles of disinfectant, 1 million sets of isolation gowns, 11 million sets of protective clothing, 350 million pieces of masks project | June 15, 2021 |
WinnerMedical(Hunan)
| Winner Medical (Hunan) | The project of off-site expansion of annual output of 300 million sets of self-destructive sterile medical equipment production line of Pingan Medical Device Technology Co., Ltd. | Li County Environmental Protection Bureau | April 05, 2005 | December 11, 2011 |
| Expansion of the production line with an annual output of 300 million sets of self-destructing sterile medical devices | April 13, 2009 | |||
| Phase III Expansion Project | Changde Ecological Environment Bureau | September 18, 2021 | May 21, 2022 | |
| Winner Medical Pingan Medical Device Industrial Park Project | January 05, 2024 | Under construction |
Sewage discharge procedures:
All subsidiaries of the Company have applied for discharge permits in accordance with relevant technical specifications, including Catalogueof Classified Management of Pollutant Discharge Permit for Fixed Pollution Sources (2019 Version), Technical Specifications for theApplication and Issuance of Pollutant Permit - General Rules (HJ942-2018), Technical Specifications for the Application and Issuance ofPollutant Permit - Textile and Dyeing Industry (HJ 861-2017), Technical Specifications for the Application and Issuance of Pollutant Permit- Boiler (HJ953-2018), Technical Specifications for the Application and Issuance of Pollutant Permit - General Wastewater Treating Process(HJ1120-2020), Technical Specification for Application and Issuance of Pollutant Permit - Rubber and Plastic Products Industry (HJ1122-2020), Self-monitoring Technology Guidelines for Pollution Sources - General Rules (HJ 819-2017), Technical Specifications forEnvironmental Management Ledger and Emission Permit Implementation Report for Pollution Sources - General Rules (Trial) (HJ944-2018),Self-monitoring Technology Guidelines for Pollution Sources - Rubber and Plastic Products Industry (HJ 1207—2021), Self-monitoringTechnology Guidelines for Pollution Sources - Textile and Dyeing Industry (HJ 879-2017), and Self-monitoring Technology Guidelines forPollution Sources - Thermal Power Generation and Boiler (HJ 820-2017).
The status of emission permits for each and subsidiary is as follows:
| Subsidiaries | Certificate type | Certificate No. | Validity | Remark |
Chongyang Plant I
| Chongyang Plant I | Pollutant discharge permit | 91421223732699160U003P | August 12, 2023 - August 11, 2028 | 2024-04-08 Changes (per review) |
Chongyang Plant II
| Chongyang Plant II | Discharge registration form | 91421223732699160U001P | April 28, 2020 - April 27, 2025 |
Chongyang Plant III
| Chongyang Plant III | Discharge registration form | 91421223732699160U002w | April 28, 2020 - April 27, 2025 |
WinnerMedical(Huanggang)
| Winner Medical (Huanggang) | Pollutant discharge permit | 91421100767435675X001V | September 22, 2023 - September 21, 2028 | 2024-04-03 Re-applied |
WinnerMedical(Jiayu)
| Winner Medical (Jiayu) | Pollutant discharge permit | 914212217261049092001V | April 10, 2024 - April 9, 2029 | 2024-04-10 Re-applied |
WinnerMedical(Jiayu) -NewFactory
| Winner Medical (Jiayu) - New Factory | Pollutant discharge permit | 914212217261049092002P | September 07, 2023 - September 06, 2028 | Inactive |
WinnerMedical(Jingmen)
| Winner Medical (Jingmen) | Pollutant discharge permit | 914208006158216140001P | August 27, 2023 - August 26, 2028 | 2024-03-28 Changes (per review) |
WinnerMedical(Tianmen)
| Winner Medical (Tianmen) | Pollutant discharge permit | 914290067261112368001P | December 13, 2022-August 30, 2027 |
WinnerMedical(Wuhan)
| Winner Medical (Wuhan) | Pollutant discharge permit | 91420000MA48TD7BXB001V | September 01, 2023 - August 31, 2028 |
WinnerMedical(Yichang)
| Winner Medical (Yichang) | Discharge registration form | 91420583706860379K001W | April 30, 2020 - April 29, 2025 |
WinnerMedical(Shenzhen)
| Winner Medical (Shenzhen) | Pollutant discharge permit | 91440300MA5GKGMX3Y001W | November 08, 2023 - November 07, 2028 |
WinnerGuilin
| Winner Guilin | Pollutant discharge permit | 914503008988813841001U | March 24, 2022 - March 23, 2027 |
WinnerMedical(Hunan)
| Winner Medical (Hunan) | Discharge registration form | 91430723565949803B001X | June 05, 2020 - June 04, 2025 |
ZhejiangLongterm
| Zhejiang Longterm | Discharge registration form | 91330500051340478U001Z | May 29, 2020 - May 28, 2025 |
| Company or subsidiary name | Category of main pollutants and characteristic pollutants | Names of main pollutants and characteristic pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards implemented | Total emissions | Total emissions approved | Emissions beyond standards |
WinnerMedical(Chongyang)Co., Ltd.
| Winner Medical (Chongyang) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 1 | Boiler discharge outlet | / | 20mg/m?, 50mg/m?, 200mg/m? | NOX: 0T, SO2: 0T (not used) | NOX: unlicensed, SO2: unlicensed | Not exceeding the standard |
WinnerMedical(Chongyang)Co., Ltd.
| Winner Medical (Chongyang) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Direct discharge | 1 | Sewage discharge outlet | 7.7, 56mg/L, 17.3mg/L, 0.535mg/L, 7mg/L | 6-9, 80mg/L, 20mg/L, 10mg/L, 50mg/L | COD: 5.398T、NH3-N: 0.186T | COD：57.6T/a, NH3-N：7.27T/a | Not exceeding the standard |
| Company or subsidiary name | Category of main pollutants and characteristic pollutants | Names of main pollutants and characteristic pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards implemented | Total emissions | Total emissions approved | Emissions beyond standards |
WinnerMedical(Jiayu) Co.,Ltd.
| Winner Medical (Jiayu) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 1 | Boiler discharge outlet | 5.8mg/m?, 14mg/m?, 128mg/m? | 20mg/m?, 50mg/m?, 200mg/m? | NOX：1.216T, SO2：0.178T | NOX: unlicensed, SO2: unlicensed | Not exceeding the standard |
WinnerMedical(Jiayu) Co.,Ltd.
| Winner Medical (Jiayu) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Direct discharge | 1 | Sewage discharge outlet | 7.0, 18mg/L, 8.8mg/L, 0.315mg/L, 16mg/L | 6-9, 80mg/L, 20mg/L, 10mg/L, 50mg/L | COD：5.584T, NH3-N：0.060T | COD：44.7T/a, NH3-N：1.19T/a | Not exceeding the standard |
WinnerMedical(Huanggang)Co., Ltd.
| Winner Medical (Huanggang) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 2 | 1#/2# boiler discharge outlet | 5.0/4.0mg/m?, 3/3mg/m?, 127/97mg/m? | 20mg/m?, 50mg/m?, 200mg/m? | NOX：6.368T, SO2：0.007T | NOX: 23.52T/a, SO2: unlicensed | Not exceeding the standard |
WinnerMedical(Huanggang)Co., Ltd.
| Winner Medical (Huanggang) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 8.0, 65mg/L, 23.8mg/L, 1.47mg/L, 12mg/L | 6-9, 500mg/L, 300mg/L, 45mg/L, 400mg/L | COD：34.01T, NH3-N：0.988T | COD：78.5T/a, NH3-N：7.85T/a | Not exceeding the standard |
WinnerMedical(Tianmen)Co., Ltd.
| Winner Medical (Tianmen) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 1 | Boiler discharge outlet | 5.7mg/m?, 3mg/m?, 63mg/m? | 20mg/m?, 50mg/m?, 200mg/m? | NOX：1.68T, SO2：0.049T | NOX：16.8764T/a, SO2：1.804T/ a | Not exceeding the standard |
WinnerMedical(Tianmen)Co., Ltd.
| Winner Medical (Tianmen) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 7.7, 59mg/L, 25.1mg/L, 0.408mg/L, 15mg/L | 6-9, 400mg/L, 150mg/L, 30mg/L, 250mg/L | COD：3.01T, NH3-N：0.098T | COD：62.573T/а, NH3-N：б. 2573T/a | Not exceeding the standard |
WinnerMedical(Wuhan) Co.,Ltd.
| Winner Medical (Wuhan) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | / | / | / | / | / | No boiler, no license | Not exceeding the standard |
WinnerMedical(Wuhan) Co.,Ltd.
| Winner Medical (Wuhan) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, chromaticity | Indirect discharge | 1 | Sewage discharge outlet | 8.0, 185mg/L, 49.7mg/L, 1.04mg/L, 5 | 6-9, 500mg/L, 300mg/L, 45mg/L, 64 | COD：19.31T, NH3-N：1.93T | COD：90.35T/a, NH3-N：9.04T/a | Not exceeding the standard |
| Company or subsidiary name | Category of main pollutants and characteristic pollutants | Names of main pollutants and characteristic pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards implemented | Total emissions | Total emissions approved | Emissions beyond standards |
WinnerMedical(Jingmen)Co., Ltd.
| Winner Medical (Jingmen) Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 1 | Boiler discharge outlet | 3.17mg/m?, 3mg/m?, 87.3mg/m? | 20mg/m?, 50mg/m?, 150mg/m? | NOX：1.07T, SO2：0.042T | NOX: unlicensed, SO2: unlicensed | Not exceeding the standard |
WinnerMedical(Jingmen)Co., Ltd.
| Winner Medical (Jingmen) Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 8.3, 49mg/L, 13.2mg/L, 0.214mg/L, 12mg/L | 6-9, 200mg/L, 50mg/L, 20mg/L, 100mg/L | COD：6.03T, NH3-N：0.603T | COD：19.48T/a, NH3-N：1.95T/a | Not exceeding the standard |
YichangWinnerMedicalTextile Co.,Ltd.
| Yichang Winner Medical Textile Co., Ltd. | Gaseous pollutants | PM, SO2, NOX | / | 1 | Boiler discharge outlet | / | 20mg/m?, 50mg/m?, 150mg/m? | Unlicensed | Unlicensed | Out of service |
YichangWinnerMedicalTextile Co.,Ltd.
| Yichang Winner Medical Textile Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 7.6, 131mg/L, 39.3mg/L, 12.5mg/L, 45mg/L | 6-9, 500mg/L, 300mg/L, 45mg/L, 400mg/L | Unlicensed | Unlicensed | Not exceeding the standard |
ShenzhenBranch ofWinnerMedical Co.,Ltd.
| Shenzhen Branch of Winner Medical Co., Ltd. | Gaseous pollutants | HCl, VOC | / | 2 | Production exhaust gas outlet | 2.86/0.9mg/m?, 3/0.94mg/ m? | 100 mg/m?, 80 mg/m? | Unlicensed | Unlicensed | Not exceeding the standard |
Winner GuilinLatex Co.,Ltd.
| Winner Guilin Latex Co., Ltd. | Liquid pollutants | PH, COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 7.58, 92mg/L, 31.2mg/L, 7.58mg/L, 22mg/L | 6-9, 300mg/L, 80mg/L, 30mg/L, 150mg/L | Unlicensed | Unlicensed | Not exceeding the standard |
WinnerMedical(Hunan) Co.,Ltd.
| Winner Medical (Hunan) Co., Ltd. | Liquid pollutants | COD, BOD, NH3-N, SS | Indirect discharge | 1 | Sewage discharge outlet | 17mg/L, 4.1mg/L, 0.51mg/L, 8mg/L | 100mg/L, 20mg/L, 15mg/L, 70mg/L | Unlicensed | Unlicensed | Not exceeding the standard |
ZhejiangLongtermMedicalTechnologyCo., Ltd.
| Zhejiang Longterm Medical Technology Co., Ltd. | Liquid pollutants | PH, COD, NH3-N | Indirect discharge | 1 | Sewage discharge outlet | 7.3, 208mg/L, 30.1mg/L | 6-9, 500mg/L, 45mg/L | Unlicensed | Unlicensed | Not exceeding the standard |
Processing of pollutants
(1) Winner Medical (Jiayu) Co., Ltd.
It is a key wastewater discharge enterprise, and the wastewater mainly includes domestic sewage and production wastewater. Domestic sewage(including canteen wastewater) is first treated in oil separation tank and septic tank, and then mixed with production wastewater to enter thesewage treatment station in the plant. The sewage treatment station adopts “hydrolysis acidification + biological contact oxidation method” fortreatment, and then discharged from the drainage outlet through pipeline after reaching the standard. The wastewater has been installed withon-line monitoring. The sewage treatment station passed the environmental protection acceptance after the Environmental Protection Bureauof Jiayu County was completed on September 28, 2017, implementing the limit value of Discharge Standards of Water Pollutants for Dyeingand Finishing of Textile Industry (GB4287-2012). The sewage plant were concrete structures with a service life of 20 years, and theenvironmental protection equipment has a service life of 10 years.
Solid waste is mainly domestic waste of employees; impurities (cotton residue, cotton dust and cotton batting) generated in the productionprocess and cotton dust collected by dust removal equipment; the leftover materials produced in the slicing process; sludge from sewagetreatment station; the hazardous waste generated is chemical material packaging barrel. For general solid wastes, disposal agreements aresigned with disposal units; for hazardous wastes, disposal agreements are signed with qualified disposal units.
(2) Winner Medical (Chongyang) Co., Ltd.
It is a key wastewater discharge enterprise. The project’s wastewater mainly includes domestic, production, and experimental wastewater. Theproduction wastewater is discharged into the wastewater treatment station (hydrolysis acidification + biological contact oxidation method),and the treatment reaches the standard; the experimental wastewater is hazardous waste and has been entrusted to a third-party company fortreatment. The domestic sewage of the employees and production wastewater generated by the enterprise are directly discharged into thesewage treatment plant and discharged after reaching the standard. Online wastewater monitoring has been installed, and the sewage stationcompleted independent acceptance on March 20, 2017, implementing the limit value of Discharge Standards of Water Pollutants for Dyeingand Finishing of Textile Industry (GB4287-2012). The sewage plant were concrete structures with a service life of 20 years, and theenvironmental protection equipment has a service life of 10 years. Gas-fired boiler decommissioning begins in the second half of 2023.
Solid waste mainly includes office and domestic waste of employees, dust, leftover materials and unqualified products produced in production.For domestic waste and general solid waste, disposal agreements are signed with disposal units, and for hazardous waste, entrustmentagreements are signed with third parties.
(3) Yichang Winner Medical Textile Co., Ltd.:
No production wastewater discharge, domestic wastewater enters the municipal pipe network, and clean energy natural gas is used as fuel. Thegas boiler was decommissioned in 2022.
(4) Winner Medical (Tianmen) Co., Ltd.
It is a key wastewater discharge enterprise. The wastewater mainly comes from the production wastewater produced by the degreasing andbleaching workshop and the domestic sewage in the plant area. The main pollutants are pH, COD, suspended solids and BOD5. The productionwastewater is discharged to the sewage treatment station (hydrolysis acidification + biological contact oxidation method), and the treatmentreaches the standard; domestic sewage enters the sewage treatment station and is treated with the production wastewater. Online monitoringof wastewater has been installed, and the phase I project of the sewage station completed independent acceptance on March 23, 2018,implementing the limit value of Discharge Standards of Water Pollutants for Dyeing and Finishing of Textile Industry (GB4287-2012). Thesewage plant were concrete structures with a service life of 20 years, and the environmental protection equipment has a service life of 10 years.
Treatment agreements are signed with disposal units for general solid waste and domestic waste. Hazardous solid waste is mainly chemicalmaterial packaging barrels, which raw material suppliers recycle, and no hazardous waste is transferred for disposal.
(5) Winner Medical (Jingmen) Co., Ltd.
It is a key wastewater discharge enterprise, and the wastewater discharged by the enterprise is mainly production wastewater and domesticsewage. The production wastewater mainly comes from the scouring and bleaching process. The PH value of the wastewater is obviouslyalkaline and the COD value is high, but there is no harmful poisonous substance in it. The wastewater is discharged into the self-built sewagestation, treated by “flocculation precipitation + hydrolysis acidification + biological contact oxidation method + biological aerated filter”, andthen discharged into the downstream municipal sewage plant. After simple treatment in septic tank, domestic sewage will be treated in self-built sewage station. The sewage station has been built, online wastewater monitoring has been installed, and the pollutant discharge permithas been obtained. It is to be accepted. It implements the limit value of Discharge Standards of Water Pollutants for Dyeing and Finishing ofTextile Industry (GB4287-2012). The sewage plant were concrete structures with a service life of 20 years, and the environmental protectionequipment has a service life of 10 years.
For domestic waste and general solid wastes, disposal agreements are signed with disposal units, and for hazardous wastes, transfer agreementsare signed with third-party disposal units.
(6) Winner Medical (Huanggang) Co., Ltd.
It is a key wastewater discharge enterprise, and the wastewater discharged by the enterprise is mainly production wastewater and domesticsewage. The wastewater mainly comes from spun lace forming, degreasing / bleaching, and soft water preparation processes. Most of thewastewater from spun lace forming process is reused for production after being treated by water treatment circulation system, while a smallpart of the wastewater are discharged into the self-built sewage station with that from degreasing / bleaching process, and then discharged afterbeing treated by “hydrolysis acidification + biological contact oxidation” and reaching the standard. After simple treatment in septic tank,domestic sewage will be treated in self-built sewage station. Online monitoring of wastewater has been installed, and the sewage station passedthe environmental protection acceptance after completion of Environmental Protection Bureau of Huanggang City on January 24, 2017,implementing the level III standard limit in Table 4 of Integrated Wastewater Discharge Standard (GB8978-1996). The sewage plant wereconcrete structures with a service life of 20 years, and the environmental protection equipment has a service life of 10 years.
The solid wastes of the project include general solid wastes, other solid wastes and hazardous solid wastes. The general solid wastes are mainlycotton impurities, leftover materials, defective products, sludge from sewage treatment facilities, etc. generated in the production process. Othersolid wastes are domestic wastes generated from office and life. Among them, cotton impurities, leftover materials and defective products aresold for comprehensive utilization; after the sludge is dehydrated, it will be treated by the environmental sanitation department together withthe domestic waste. Hazardous solid wastes are mainly chemical waste packaging barrels, which raw material suppliers recycle, and the wasteoil is stored in the plant area, and delivered to qualified units for disposal after reaching the transportation volume.
(7) Winner Medical (Wuhan) Co., Ltd.
It is a key wastewater discharge enterprise. The project’s wastewater mainly includes preparation, spun laced, degreasing, bleaching, domesticwater, etc. The wastewater discharge of the project is 2126.93t/d after the completion of phase I, 4067.11t/d after phase II, and 6004.5t/d afterphase III. The wastewater undergoes treatment using the “hydrolysis acidification + anaerobic + biological contact oxidation method”. Onlinemonitoring has been installed for the wastewater. The initial phase of the sewage station completed its independent acceptance on January 7,2020, while the wastewater station Phase II completed at the time of the Phase II project on June 13, 2023 for independent acceptance. Thethird-level standard limits outlined in Table 4 of the Integrated Wastewater Discharge Standard (GB8978-1996) were implemented. Thesewage plant were concrete structures with a service life of 20 years, and the environmental protection equipment has a service life of 10 years.
The solid wastes of the project are mainly divided into general solid wastes, other solid wastes and hazardous solid wastes. Among them, cottonimpurities, leftover materials, defective products and fiber dust are purchased and recycled, and sludge and domestic waste are disposed by theenvironmental sanitation department.
According to the Standard for Pollution Control on Hazardous Waste Storage (GB 18597-2023), the temporary storage room of hazardouswaste shall be constructed and the hazardous waste shall be stored as required. Meanwhile, the daily management of hazardous waste shouldbe strengthened. Disposal agreements for all hazardous waste are signed with the qualified units.
(8) Shenzhen Branch of Winner Medical Co., Ltd.
After the production wastewater is collected, it should be entrusted to a qualified unit for treatment and will not be discharged. A small amountof acidic waste gas and organic waste gas are discharged after spraying + activated carbon adsorption.
General solid waste mainly consists of waste packaging and stickers, which are collected and processed by specialized recycling units.Hazardous waste mainly includes waste containers, waste activated carbon, biological waste, etc., which are temporarily stored in hazardouswaste storage rooms and are regularly entrusted to qualified units for centralized processing. Hazardous waste is stored in accordance with theStandard for Pollution Control on Hazardous Waste Storage (GB18597- 2023).
(9) Winner Guilin Latex Co., Ltd.
The wastewater of the project mainly includes mold cleaning wastewater, leaching wastewater, soaking wastewater and equipment cleaningwastewater, and the production wastewater contains gum, insoluble coagulant and impurities in other raw and auxiliary materials, which arepretreated and removed before entering the comprehensive wastewater treatment station in the plant. The existing three-stage septic tank treatsthe domestic wastewater of employees and then enters the comprehensive sewage treatment station together with the pretreated productionwastewater. The company’s integrated wastewater treatment station adopts air flotation + filtration process, and discharges the treatedwastewater into the municipal wastewater treatment plant. The exhaust gas from compound preparation, pre-vulcanization tank, latex parkingtank, latex dipping drying and post-vulcanization is collected and discharged after treatment by exhaust gas treatment system (water spray +dehumidification + activated carbon adsorption).
General industrial solid waste is waste rubber, unqualified products, waste packaging shall be taken up by the latex supplier for regular recycling,sludge and domestic waste shall be taken up by the local sanitation department for unified cleaning and disposal. Hazardous wastes are wasteresin and waste activated carbon. They shall be collected centrally and entrusted to units with corresponding hazardous waste treatmentqualifications for disposal.
(10) Winner Medical (Hunan) Co., Ltd.
A small amount of production wastewater and domestic sewage is discharged, among which production wastewater mainly includes cleaningwastewater, workshop cleaning wastewater, ethylene oxide exhaust absorption wastewater and pure water preparation wastewater. Thewastewater, including the cleaning wastewater and workshop cleaning wastewater treated by sedimentation tank, the ethylene oxide exhaustabsorption wastewater treated by adsorption method, and the canteen wastewater pretreated by grease trap, will be discharged to septic tankfor treatment, and to Li County Wastewater Treatment Plant for further treatment through municipal pipeline network. The waste gas, includingthe Injection molding waste gas, organic waste gas volatilized from printing process, and organic waste gas from bonding, will be collectedand treated by lye spraying tower, and then sent to the UV photolysis + activated carbon adsorption device for treatment. After treatment, thewaste gas will be discharged through a 15m exhaust pipe.
The general industrial solid waste consists of waste fabric and waste packaging materials, which are collected and recycled by the materialcompany for comprehensive purposes. Hazardous wastes are waste raw material drums, waste activated carbon, waste mineral oil, waste UVphotolysis lamps and waste adsorbent, which are collected centrally after classification and disposed of by units entrusted with thecorresponding hazardous waste treatment qualification.
(11) Zhejiang Longterm Medical Technology Co., Ltd.
Cleaning wastewater, concentrated water for pure water preparation and domestic sewage are discharged. The septic tank in the factory pretreatsdomestic sewage, and then piped to Deqing Hengfeng Sewage Treatment Co., Ltd. for centralized treatment with the concentrated water forpure water preparation and domestic sewage. Process exhaust gas is treated by one photo-oxidation catalytic treatment equipment set and thendischarged through a 15m exhaust funnel. Process dust is treated by 1 set of cloth bag dust collectors and then discharged through a 15mexhaust funnel.
The solid wastes are mainly the waste from the daily life of employees and solid wastes from the canteen are disposed of by sanitationdepartment, the trimmings and defective products generated in the production process, waste packaging bags generated from raw and auxiliarymaterials are sold to material recycling companies; hazardous wastes are waste activated carbon generated in the process of waste gas treatmentand ethylene oxide waste liquid generated in the process of sterilization, which is entrusted to corresponding qualified companies for treatment.
During the reporting period: the environmental protection facilities of each branch (subsidiary) are operating normally, and the monitoringresults of each discharge port meet the relevant standards.
Environmental self-monitoring scheme
All companies have applied for discharge permits, of which the self-monitoring programs are formulated in accordance with the relevantindustry norms. Pollutants are mainly detected through a combination of manual laboratory tests + commissioned monitoring + onlinemonitoring. The key sewage subsidiaries involved in the production of wastewater discharge are installed with online monitoring systems,which are networked with government authorities for real-time monitoring, and the online monitoring equipment is entrusted to a professionalthird-party company for operation and maintenance. Commissioned monitoring and manual monitoring projects are implemented according tothe requirements of the monitoring program, and the monitoring results are released in a timely manner on the provincial pollutant platform.Self-monitoring scheme of each company is made public on the national pollutant discharge permit management platform.
Emergency plan for environmental emergencies
In order to further improve the emergency management system of environmental pollution accidents, improve the ability to deal with majorenvironmental pollution accidents to ensure the safety of production and operation, improve the ability of employees to deal with accidents,standardize the Company’s emergency management and corresponding emergency procedures, and implement emergency rescue work in atimely and effective manner, prevent and reduce the occurrence of accidents to the greatest extent, branches and subsidiaries of Winner MedicalCo., Ltd. have set up an environmental accident emergency leading group and formulated the Emergency Plan for Environmental Accidents.
Reporting period: On January 15, 2024, Winner Guilin Latex Co., Ltd. re-compiled the emergency plan for sudden environmental emergenciesafter three years expired. On May 14, 2024, the emergency plan for sudden environmental accidents in Winner Medical (Chongyang) Co., Ltd.expired for three years and was re-compiled.
Investment in environmental treatment and protection and related information on payment of environmental protection tax
During the reporting period, the Company and its subsidiaries paid RMB 63,600 of environmental protection tax.
Administrative penalties imposed due to environmental issues during the reporting period
| Company or subsidiary name | Reasons for penalty | Violations | Punishment | Impacts on the production and operation of listed companies | Rectification measures of the Company |
None
| None | None | None | None | None | None |
Other environmental information that should be disclosed
None
Measures taken to reduce its carbon emissions during the reporting period and their effects
√Applicable □ Not applicable
The company actively carried out energy-saving and carbon-reducing activities, mainly reducing energy consumption by replacing high-efficiency motors, recovering waste heat, optimizing production technology, and intelligently controlling energy. During the reporting period,it saved a total of more than RMB 4.9 million in energy costs.
Other information related to environmental protection
None
The Company needs to comply with the disclosure requirements of the “Textile and Apparel Business” stipulated in the No. 3 Guideline ofShenzhen Stock Exchange for Self-regulatory of Listed Companies - Industry Information Disclosure.
Information on environmental accidents of listed companies
None
II. Social Responsibility
The Company takes “social value over corporate value” as one of its core operating principles and actively undertakes social responsibilities.In terms of elderly care, the light skin care products featuring a degradable cotton surface represent a perfect blend of product innovation,social responsibility and environmental sustainability. During the reporting period, we donated adult incontinence care products to manynursing homes, demonstrating our commitment to supporting the elderly and bringing new hope to the cause of elderly care. For childcare, theCompany donated children’s shoes to Chongqing through Chongqing Children’s Relief Foundation to help infants and children grow up happily.In terms of disaster relief, in June 2024, heavy rains affected many places in Meizhou, Guangdong Province. The Company actively deployediodophor cotton swabs, band-AIDS, sanitary wet tissues, medical surgical masks, gauze bandages and other materials to the Meizhou RedCross Foundation to help the affected people smoothly pass through the stages of emergency repair, transfer and resettlement.
In addition, the Company is committed to community engagement and actively participates in public welfare initiatives through party-buildingefforts. During the reporting period, we organized over 10 volunteer activities, with more than 100 participants. Through our party-buildinginitiatives, we donated materials valued at RMB 5.6 million to organizations such as Longhua Charity Association, Longhua Women’sFederation, Women’s and Children’s Foundation, Longhua Disabled Persons’ Federation, Shenzhen Social Welfare Guidance Center,Shenzhen Youth League Committee, Shenzhen Express Industry Party Committee and other institutions. Our support extends to the elderly,women and children, people in impoverished mountainous areas, medical institutions, two new employment groups, etc., benefiting millionsof people, which fully reflected Winner’s social responsibility.
Important Matters
Section VI Important Matters
I. Commitments Fulfilled within and not Fulfilled by the End of the Reporting Period by theCompany’s Actual Controller, Shareholders, Related Parties, Acquirers and Other CommitmentParties
□ Applicable √ Not applicable
No commitments fulfilled within and within and not fulfilled by the end of the reporting period by the Company’s actual controller, shareholders,related parties, acquirers and other commitment parties.
II. Non-operating Occupation of Funds of Listed Companies by Controlling Shareholders andTheir Related Parties
□ Applicable √ Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and their related parties during the reporting period.
III. Illegal External Guarantee
□ Applicable √ Not applicable
No illegal external guarantee of the Company during the reporting period.
IV. Appointment of and Dismissal of Accounting Firms
Whether the semi-annual financial report has been audited
□Yes √No
The semi-annual report of the Company has not been audited.
V. Statement of the Board of Directors and the Board of Supervisors on the “Non-Standard AuditReport” of the Accounting Firm during the Reporting Period
□ Applicable √ Not applicable
VI. Statement of the Board of Directors on the “Non-Standard Audit Report” of the PreviousYear
□ Applicable √ Not applicable
VII. Bankruptcy Reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization of the Company during the reporting period.
VIII. Litigation Matters
Major litigation, arbitration matters
√Applicable □ Not applicable
| Basic information of litigation (arbitration) | Amount involved (10,000 yuan) | Whether to form estimated liabilities | Progress of litigation (arbitration) | Trial result and influence of litigation (arbitration) | Implementation of litigation (arbitration) judgment | Date of disclosure | Disclosure index |
Winner Medical v.People’sGovernment ofZijin County,arbitration case ofcontract dispute[Case No.: (2019)GGZZ No. 095,(2022) Yue 16Execution No. 299]
| Winner Medical v. People’s Government of Zijin County, arbitration case of contract dispute [Case No.: (2019) GGZZ No. 095, (2022) Yue 16 Execution No. 299] | 55,565.53 | No | The People’s Government of Zijin County has not yet paid the full amount of compensation to the Company in accordance with the award, and the Company has applied to the Heyuan City Intermediate People’s Court for enforcement and has been accepted by the court. On December 28, 2023, Heyuan Intermediate People’s Court ruled that the execution should be terminated on the grounds of “other circumstances that the people’s court thinks should be terminated”. The Company has applied to the court to terminate the execution objection, and has now resumed enforcement. | The ruling of Case No.: (2019) Jiangxi National Arbitration Letter No. 095 confirmed that the original Investment Agreement was terminated, and the People’s Government of Zijin County had to return 3 million yuan of land transfer deposit to the Company, and compensate for economic losses of 550 million yuan as well as the lawyer’s fees of 500,000 yuan and legal cost of 2.15532 million yuan. The land, above-ground buildings, equipment and facilities and relevant supporting materials of Heyuan Winner investment and construction project were handed over to the People’s Government of Zijin County. There will be no adverse impact on the Company | As of the disclosure date of this report, the Company has received a land transfer deposit of RMB 3 million and compensation of about RMB 330 million returned by the Zijin County People’s Government, and the remaining amount of about RMB 220 million has not been received according to the award. The Company has handed over the project land, above-ground buildings, equipment and facilities and relevant supporting materials to the People’s Government of Zijin County. |
Other litigation matters
√Applicable □ Not applicable
| Basic information of litigation (arbitration) | Amount involved (10,000 yuan) | Whether to form estimated liabilities | Progress of litigation (arbitration) | Trial result and influence of litigation (arbitration) | Implementation of litigation (arbitration) judgment | Date of disclosure | Disclosure index |
Summary of other smalllawsuits in which theCompany or itssubsidiaries are plaintiffsthat do not meet thecriteria for disclosure ofmaterial litigation
| Summary of other small lawsuits in which the Company or its subsidiaries are plaintiffs that do not meet the criteria for disclosure of material litigation | 8,313 | No | In progress according to the litigation/arbitration process, some cases have not yet been concluded, and the concluded cases are executed according to the process | No significant impacts on the Company’s production and operation | Executed according to litigation/arbitration process |
Summary of other smalllawsuits in which theCompany or itssubsidiaries aredefendants that do notmeet the criteria fordisclosure of materiallitigation
| Summary of other small lawsuits in which the Company or its subsidiaries are defendants that do not meet the criteria for disclosure of material litigation | 379 | No | In progress according to the litigation/arbitration process, some cases have not yet been concluded, and the concluded cases are executed according to the process | No significant impacts on the Company’s production and operation | Executed according to litigation/arbitration process |
IX. Punishment and Rectification
□ Applicable √ Not applicable
No punishment or rectification of the Company during the reporting period.
X. Credit Conditions of the Company, Its Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XI. Major Related Transactions
1. Connected Transactions Related to Daily Operation
□ Applicable √ Not applicable
There were no connected transactions related to the daily operation of the Company during the reporting period.
2. Connected Transactions Arising from the Acquisition or Sale of Assets or Equity
□ Applicable √ Not applicable
No connected transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Connected Transaction of Joint Foreign Investments
□ Applicable √ Not applicable
No connected transactions of joint foreign investment of the Company during the reporting period.
4. Related Credit and Debt Transactions
□ Applicable √ Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
There is no deposit, loan, credit or other financial business between the Company and the finance company with which it is affiliated, thefinance company controlled by the Company and the related parties.
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□ Applicable √ Not applicable
There is no deposit, loan, credit or other financial business between the finance companies controlled by the Company and related parties.
7. Other Major Connected Transactions
□ Applicable √ Not applicable
No other major connected transactions of the Company during the reporting period.
XII. Major Contracts and Their Performance
1. Trusteeship, Contracting and Lease
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable √ Not applicable
No leasing of the Company during the reporting period.
2. Major Guarantee
□ Applicable √ Not applicable
No major guarantees of the Company during the reporting period.
3. Major Contracts for Daily Operation
□ Applicable √ Not applicable
The Company did not have any major contracts for day-to-day operations during the reporting period.
4. Other Major Contracts
□ Applicable √ Not applicable
No other major contracts of the Company during the reporting period.
XIII. Description of Other Important Events
√Applicable □ Not applicable
In July 2023, the Company entered into an agreement relating to relocation compensation and resettlement with Shenzhen Xingda Real EstateDevelopment Co., Ltd. to carry out urban renewal and reconstruction in respect of the land and buildings on the ground of Shenzhen LonghuaDistrict Winner Industrial Park held by the Company. However, due to significant changes in the real estate market, the project was postponedin January 2024. In order to smoothly advance this project, shorten the idle time of land and reduce the uncertainty in engineering construction,combined with the distribution of compensation for urban renewal and relocation in the current real estate market, the Company has conductedseveral rounds of consultations with partners, initially formulated a solution and reached the signing intention of a supplementary agreement.According to the original agreement, the Company obtained 39,240 square meters of office property, 200 square meters of commercial property,11,220 square meters of residential property and RMB 415 million of compensation. According to the supplementary agreement to be signed,the office property area and commercial property area obtained by the Company remain unchanged (39,240 square meters for office propertyand 200 square meters for commercial property), while the residential property area and compensation amount obtained by the Company arelinked to the actual average transaction price of residential commercial housing obtained by Xingda Company. On July 26, 2024 and August12, 2024, the Company held the 23rd Meeting of the 3rd Board of Directors and the 2nd Extraordinary Shareholders’ Meeting in 2024,respectively, and reviewed and approved the Proposal on Signing the Supplementary Agreement on Relocation Compensation and Resettlementof Urban Renewal Units in Winner Industrial Park. On August 19, 2024, the Company and the partner have signed the aforementionedsupplementary agreement.
Since the residential property area and compensation amount for the Company are tied to the actual average transaction price of residentialproperties, these figures remain uncertain amid significant fluctuations in the real estate market. It is expected that the signing of this contractwill have no impact on the Company’s 2024 financial statements. After the signing of the supplementary agreement, both parties will continueto work diligently on key processes, including confirming the main body, building demolition, applying for construction land planning permit,and signing land contracts. However, due to the long implementation period of this project, the Company will actively promote it, strengthencommunication and process control, and strive to reduce the uncertainty in the implementation process due to the adjustment of urban renewallaws and policies, changes in urban planning, performance ability of partners, market, price and force majeure.
XIV. Major Events of Subsidiaries
□ Applicable √ Not applicable
Changes in Shares and Shareholders
Section Ⅶ Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: share
| Before this change | Increase/decrease (+, -) | After this change |
| Quantity | Proportion | New issue of shares | Share donation | Share capital increase from reserved funds | Others | Subtotal | Quantity | Proportion |
I. Restricted shares
| I. Restricted shares | 406,703,952 | 68.42% | 100,575 | 100,575 | 406,804,527 | 69.15% |
1. State shareholding
| 1. State shareholding |
2. State legal person
shareholding
| 2. State legal person shareholding |
3. Other domestic
holdings
| 3. Other domestic holdings | 89,565 | 0.02% | 100,575 | 100,575 | 190,140 | 0.03% |
Wherein: domestic legalperson shareholding
| Wherein: domestic legal person shareholding |
Domestic naturalpersonshareholding
| Domestic natural person shareholding | 89,565 | 0.02% | 100,575 | 100,575 | 190,140 | 0.03% |
4. Foreign shareholding
| 4. Foreign shareholding | 406,614,387 | 68.41% | 406,614,387 | 69.12% |
Wherein: foreign legalperson shareholding
| Wherein: foreign legal person shareholding | 406,614,387 | 68.41% | 406,614,387 | 69.12% |
Foreign naturalpersonshareholding
| Foreign natural person shareholding |
II. Unrestricted shares
| II. Unrestricted shares | 187,683,415 | 31.58% | -6,195,234 | -6,195,234 | 181,488,181 | 30.85% |
1. RMB common share
| 1. RMB common share | 187,683,415 | 31.58% | -6,195,234 | -6,195,234 | 181,488,181 | 30.85% |
2. Foreign shares listed in
China
| 2. Foreign shares listed in China |
3. Foreign shares listed
abroad
| 3. Foreign shares listed abroad |
4. Others
| 4. Others |
III. Total amount of shares
| III. Total amount of shares | 594,387,367 | 100.00% | -6,094,659 | -6,094,659 | 588,292,708 | 100.00% |
Causes for change in shares
√Applicable □ Not applicable
On April 13, 2024, the Company cancelled 6,094,659 shares repurchased in 2021 (accounting for 1.03% of the Company’s total share capitalbefore cancellation). After cancellation, the Company’s total share capital decreased from 594,387,367 shares to 588,292,708 shares.
Approval of changes in shares
√Applicable □ Not applicable
The Company convened the 18th Meeting of the Third Board of Directors on December 19, 2023 and the 1st Extraordinary General Meetingof Shareholders in 2024 on January 8, 2024, and considered and passed the Proposal on the Repurchase and Cancellation of Remaining Sharesin the Special Securities Account and the Proposal on the Amendment of the Articles of Association of the Company and Registration of theIndustrial and Commercial Changes. Based on the actual progress of the company’s employee stock ownership plan and equity incentive planand the number of remaining stocks in the Company’s repurchase plan in 2021, the Company intends to change the 6,094,659 shares remainingin the repurchase account excluding the first employee stock ownership plan (including the reserved part) from the original purpose of “usedfor the Company’s employee stock ownership plan or equity incentive” to “used for cancellation and reduction of the Company’s registeredcapital”.
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
√Applicable □ Not applicable
On January 29, 2024, the Company held the 19th Meeting of the 3rd Board of Directors and the 14th Meeting of the 3rd Board of Supervisors,and deliberated and passed the Proposal on Share Repurchase Scheme. With confidence in the future development and a strong belief in itsvalue, in order to enhance investor confidence, further build a more stable and high-quality management team, establish and improve theCompany’s long-term incentive mechanism. The plan is designed to establish and improve the Company’s long-term incentive mechanisms,fully engage management and key personnel, strengthen team cohesion, align the interests of shareholders with those of the Company and coreemployees, and promote sustainable long-term growth. The Company intends to utilize its own funds, ranging from RMB 100 to 200 million,to repurchase shares at a price not exceeding RMB 46 per share. As of April 29, 2024, the Company repurchased 5,807,900 shares of theCompany by way of centralized competitive bidding trading through the special securities account for repurchase, accounting for 0.9872% ofthe total share capital of the Company, with the highest transaction price of RMB 39.79 per share and the lowest transaction price of RMB
29.25 per share, for a total transaction amount of RMB 194,943,744.29 (excluding transaction fees). The share repurchase program has beenimplemented.
The Company held the 23rd Meeting of the 3rd Board of Directors and 18th Meeting of the 3rd Board of Supervisors on July 26, 2024, andthe 2nd Extraordinary General Meeting of Shareholders in 2024 on August 12, 2024, respectively, and deliberated and passed the Proposal onthe Cancellation of the Remaining Shares in the Repurchase of Dedicated Securities Accounts. The Company intends to change the purposeof 5,962,900 shares in the Repurchase Account from “used for the Company’s employee stock ownership plan or equity incentive” to “usedfor cancellation and reduction of the Company’s registered capital”.
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable √ Not applicable
Influence of share changes on the basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholdersof the Company and other financial indexes in the most recent year and the most recent period
√Applicable □ Not applicable
Influence of share changes on the basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholdersof the Company and other financial indexes in the most recent year and the most recent period. For details, refer to “Section Ⅱ - Ⅴ. MajorAccounting Data and Financial Indicators.”
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√Applicable □ Not applicable
Unit: share
| Shareholder’s name | Number of restricted shares at the beginning of the period | Number of shares released from restricted sale in the current period | Number of restricted shares increased in the current period | Number of restricted shares at the end of the period | Reasons for restricted sale | The proposed date of lifting the restricted sale |
Winner Group Limited
| Winner Group Limited | 406,614,387 | 0 | 0 | 406,614,387 | Self-commitment to extend the initial sale restriction period | September 16, 2025 |
Fang Xiuyuan
| Fang Xiuyuan | 42,000 | 0 | 45,000 | 87,000 | Shares locked by directors, supervisors and senior management | Unlock 25% of the total number of shares held at the beginning of each year until the number of shares held does not exceed 1,000 shares. |
Wang Ying
| Wang Ying | 42,000 | 10,500 | 0 | 31,500 | Shares locked by directors, supervisors and senior management | Adhere to relevant regulations regarding share sales restrictions imposed by departing directors, supervisors, and senior management |
Chen Huixuan
| Chen Huixuan | 5,565 | 0 | 17,475 | 23,040 | Shares locked by directors, supervisors and senior management | Unlock 25% of the total number of shares held at the beginning of each year until the number of shares held does not exceed 1,000 shares. |
Xu Xiaodan
| Xu Xiaodan | 0 | 0 | 17,100 | 17,100 | Shares locked by directors, supervisors and senior management | Adhere to relevant regulations regarding share sales restrictions imposed by departing directors, supervisors, and senior management |
Liu Hua
| Liu Hua | 0 | 0 | 16,500 | 16,500 | Shares locked by directors, supervisors and senior management | Adhere to relevant regulations regarding share sales restrictions imposed by departing directors, supervisors, and senior management |
Zhang Li
| Zhang Li | 0 | 0 | 11,250 | 11,250 | Shares locked by directors, supervisors and senior management | Adhere to relevant regulations regarding share sales restrictions imposed by departing directors, supervisors, and senior management |
Zhang Yan
| Zhang Yan | 0 | 0 | 3,750 | 3,750 | Shares locked by directors, supervisors and senior management | Unlock 25% of the total number of shares held at the beginning of each year until the number of shares held does not exceed 1,000 shares. |
Total
| Total | 406,703,952 | 10,500 | 111,075 | 406,804,527 | -- | -- |
II. Securities Issuance and Listing
□ Applicable √ Not applicable
III. Number and Shareholding of the Company’s Shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 29,167 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) (see Note 8) | 0 | Total number of shareholders holding special voting shares (if any) | 0 |
Ordinary shareholders holding more than 5% of shares or top 10 shareholders’ shareholdings (excluding shares lent through the transfer facility)Shareholder’sname
| Shareholder’s name | Shareholder nature | Shareholding ratio | Number of shares held at the end of the reporting period | Increase or decrease during the reporting period | Number of shares held with limited sales conditions | Number of shares held with unlimited sales conditions | Pledge, mark or frozen | |
| Status of shares | Quantity | |||||||
Winner GroupLimited
| Winner Group Limited | Overseas legal person | 69.12% | 406,614,387 | 0 | 406,614,387 | 0 | N/A | 0 |
Beijing SequoiaXinyuan EquityInvestment Center(limitedpartnership)
| Beijing Sequoia Xinyuan Equity Investment Center (limited partnership) | Domestic non-state legal person | 2.74% | 16,142,938 | -8,745,089 | 0 | 16,142,938 | N/A | 0 |
Xiamen LeyuanInvestmentPartnership(LimitedPartnership)
| Xiamen Leyuan Investment Partnership (Limited Partnership) | Domestic non-state legal person | 2.74% | 16,142,550 | 0 | 0 | 16,142,550 | N/A | 0 |
Xiamen YutongInvestmentPartnership(LimitedPartnership)
| Xiamen Yutong Investment Partnership (Limited Partnership) | Domestic non-state legal person | 1.46% | 8,560,222 | 0 | 0 | 8,560,222 | N/A | 0 |
Xiamen HuikangInvestmentPartnership(LimitedPartnership)
| Xiamen Huikang Investment Partnership (Limited Partnership) | Domestic non-state legal person | 0.88% | 5,167,887 | 0 | 0 | 5,167,887 | N/A | 0 |
Hong KongSecurities ClearingCompany Ltd.
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 0.65% | 3,794,892 | 1,321,781 | 0 | 3,794,892 | N/A | 0 |
Industrial andCommercial Bankof China Limited -E Fund ETF
| Industrial and Commercial Bank of China Limited - E Fund ETF | Others | 0.63% | 3,733,629 | 884,900 | 0 | 3,733,629 | N/A | 0 |
Huaxia LifeInsurance Co., Ltd.- Own funds
| Huaxia Life Insurance Co., Ltd. - Own funds | Others | 0.63% | 3,693,940 | 759,400 | 0 | 3,693,940 | N/A | 0 |
Agricultural Bankof China Limited. -CSI500 IndexOpen-ended Fund
| Agricultural Bank of China Limited. - CSI500 Index Open-ended Fund | Others | 0.49% | 2,909,460 | 1,573,520 | 0 | 2,909,460 | N/A | 0 |
Xiamen ZepengInvestmentPartnership(LimitedPartnership)
| Xiamen Zepeng Investment Partnership (Limited Partnership) | Domestic non-state legal person | 0.45% | 2,650,223 | 0 | 0 | 2,650,223 | N/A | 0 |
| Strategic investors or general legal persons becoming the top 10 shareholders due to the allotment of new shares (if any) | None |
Description of the above-mentioned shareholderassociation or concerted action
| Description of the above-mentioned shareholder association or concerted action | None |
Description of the aboveshareholders involved inentrusting / entrusted voting rightand waiver of voting right
| Description of the above shareholders involved in entrusting / entrusted voting right and waiver of voting right | None |
Special note on the existence ofrepurchase special accountsamong the top 10 shareholders
| Special note on the existence of repurchase special accounts among the top 10 shareholders | As of June 30, 2024, the Company’s repurchased 5,962,900 shares of the Company held in the “special securities account for the repurchase of Winner Medical Co., Ltd.” |
Shareholdings of the top 10 shareholders with unlimited sales conditions (excluding shares lent through transfer facility and shares locked up by
executives)Shareholder’s name
| Shareholder’s name | Number of shares with unlimited sales conditions held at the end of the reporting period | Share type | |
| Share type | Quantity | ||
Beijing Sequoia Xinyuan Equity Investment Center(limited partnership)
| Beijing Sequoia Xinyuan Equity Investment Center (limited partnership) | 16,142,938 | RMB common share | 16,142,938 |
Xiamen Leyuan Investment Partnership (LimitedPartnership)
| Xiamen Leyuan Investment Partnership (Limited Partnership) | 16,142,550 | RMB common share | 16,142,550 |
Xiamen Yutong Investment Partnership (LimitedPartnership)
| Xiamen Yutong Investment Partnership (Limited Partnership) | 8,560,222 | RMB common share | 8,560,222 |
Xiamen Huikang Investment Partnership (LimitedPartnership)
| Xiamen Huikang Investment Partnership (Limited Partnership) | 5,167,887 | RMB common share | 5,167,887 |
Hong Kong Securities Clearing Company Ltd.
| Hong Kong Securities Clearing Company Ltd. | 3,794,892 | RMB common share | 3,794,892 |
Industrial and Commercial Bank of China Limited -E Fund ETF
| Industrial and Commercial Bank of China Limited - E Fund ETF | 3,733,629 | RMB common share | 3,733,629 |
Huaxia Life Insurance Co., Ltd. - Own funds
| Huaxia Life Insurance Co., Ltd. - Own funds | 3,693,940 | RMB common share | 3,693,940 |
Agricultural Bank of China Limited. - CSI500 IndexOpen-ended Fund
| Agricultural Bank of China Limited. - CSI500 Index Open-ended Fund | 2,909,460 | RMB common share | 2,909,460 |
Xiamen Zepeng Investment Partnership (LimitedPartnership)
| Xiamen Zepeng Investment Partnership (Limited Partnership) | 2,650,223 | RMB common share | 2,650,223 |
Shenzhen Qianhai Daoming Investment ManagementCo., Ltd. - Daoming No. 1 Private SecuritiesInvestment Fund
| Shenzhen Qianhai Daoming Investment Management Co., Ltd. - Daoming No. 1 Private Securities Investment Fund | 1,835,641 | RMB common share | 1,835,641 |
Description of the association or concerted actionbetween top 10 public shareholders with unlimitedsales conditions, and between top 10 publicshareholders with unlimited sales conditions and top10 shareholders
| Description of the association or concerted action between top 10 public shareholders with unlimited sales conditions, and between top 10 public shareholders with unlimited sales conditions and top 10 shareholders | None |
Description of the top 10 common shareholdersparticipating in the financing and securities financingbusiness (if any)
| Description of the top 10 common shareholders participating in the financing and securities financing business (if any) | None |
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders with unrestricted shares participating in therefinancing business to lend shares.
√Applicable □ Not applicable
Unit: share
Shareholders holding more than 5% of shares, the top 10 shareholders and the top 10 shareholders with unrestricted shares participating in
the refinancing business to lend shares.Shareholder’s name(full name)
| Shareholder’s name (full name) | Holdings in ordinary accounts and credit accounts at the beginning of the period | Shares lent under refinancing at the start of the period that remain outstanding | Holdings in general accounts and credit accounts at the end of the period | Shares loaned through refinancing at the end of the period that are yet to be returned | ||||
| Total | Proportion to total share capital | Total | Proportion to total share capital | Total | Proportion to total share capital | Total | Proportion to total share capital | |
Agricultural Bank ofChina Limited. -CSI500 Index Open-ended Fund
| Agricultural Bank of China Limited. - CSI500 Index Open-ended Fund | 1,335,940 | 0.22% | 386,000 | 0.06% | 2,909,460 | 0.49% | 108,400 | 0.02% |
Industrial andCommercial Bank ofChina Limited - EFund ETF
| Industrial and Commercial Bank of China Limited - E Fund ETF | 2,848,729 | 0.48% | 52,700 | 0.01% | 3,733,629 | 0.63% | 106,000 | 0.02% |
The top 10 shareholders and the top 10 shareholders of unrestricted shares have changed from the previous period due to lending/returning ofrefinancing.
□ Applicable √ Not applicable
Whether the company has a voting rights differential arrangement
□Yes √No
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on a repurchasetransaction during the reporting period
□Yes √No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a repurchasetransaction during the reporting period
IV. The Cumulative Number of Pledged Shares of the Controlling Shareholder or the LargestShareholder of the Company and the Person Acting in Concert Accounts for 80% of the TotalNumber of Shares Held by Them in the Company
□ Applicable √ Not applicable
V. Equity Changes of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
| Name | Position | Status of service | Number of shares held at the beginning of the period (shares) | Number of shares increased in the current period (shares) | Number of shares decreased in the current period (shares) | Number of shares held at the end of the period (shares) | Number of restricted shares granted at the beginning of the period (shares) | Number of restricted shares granted in the current period (shares) | Number of restricted shares granted at the end of the period (shares) |
FangXiuyuan
| Fang Xiuyuan | Director, Deputy General Manager, Chief Financial Officer | Incumbent | 56,000 | 60,000 | 0 | 116,000 | 28,000 | 0 | 0 |
XuXiaodan
| Xu Xiaodan | Director | Resign | 0 | 22,800 | 0 | 22,800 | 16,800 | 0 | 0 |
ZhangYan
| Zhang Yan | Director | Incumbent | 0 | 5,000 | 0 | 5,000 | 0 | 0 | 0 |
Liu Hua
| Liu Hua | Supervisor | Resign | 0 | 22,000 | 0 | 22,000 | 0 | 0 | 0 |
ChenHuixuan
| Chen Huixuan | Deputy General Manager, Secretary to the Board Of Directors | Incumbent | 7,420 | 23,300 | 0 | 30,720 | 16,800 | 0 | 0 |
Zhang Li
| Zhang Li | Deputy general manager | Resign | 0 | 15,000 | 0 | 15,000 | 28,000 | 0 | 0 |
Total
| Total | -- | -- | 63,420 | 148,100 | 0 | 211,520 | 89,600 | 0 | 0 |
VI. Change in Controlling Shareholders or Actual Controllers
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
No change in controlling shareholders during the reporting period.
Changes in actual controller during the reporting period
□ Applicable √ Not applicable
No change in actual controller during the reporting period.
Section Ⅷ Information Related to Preferred Shares
Information Related to Preferred Shares
Section Ⅸ Information Related to Bonds
Information Related to Bonds
Financial Report
Section Ⅹ Financial Report
I. Audit Report
Whether the semi-annual report is audited
□Yes √No
The Company’s semi-annual financial report has not been audited.
II. Financial Statements
Unit of statements in financial notes: RMB
1. Consolidated Balance Sheet
| Prepared by: Winner Medical Co., Ltd. | June 30, 2024 | Unit: yuan |
| Item | Closing Balance | Balance at the beginning of the period |
Current assets:
| Current assets: |
Cash and cash equivalents
| Cash and cash equivalents | 3,917,672,185.79 | 4,706,132,071.27 |
Deposit reservation for balance
| Deposit reservation for balance |
Lending funds
| Lending funds |
Tradable Financial Assets
| Tradable Financial Assets | 2,524,636,253.55 | 2,850,058,540.71 |
Derivative Financial Assets
| Derivative Financial Assets |
Notes Receivable
| Notes Receivable | 13,038,762.74 | 42,963,076.53 |
Accounts Receivable
| Accounts Receivable | 939,231,196.69 | 768,602,289.60 |
Amounts Receivable Financing
| Amounts Receivable Financing | 36,356,429.51 | 29,348,618.44 |
Advances to Suppliers
| Advances to Suppliers | 112,983,774.44 | 122,281,742.75 |
Premiums receivables
| Premiums receivables |
Reinsurance accounts receivable
| Reinsurance accounts receivable |
Provision of cession receivable
| Provision of cession receivable |
Other Receivables
| Other Receivables | 225,809,699.10 | 218,913,405.18 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable |
Redemptory cash and cash equivalentsfor sale
| Redemptory cash and cash equivalents for sale |
Inventory
| Inventory | 1,453,182,715.60 | 1,434,326,287.96 |
Including: data resources
| Including: data resources |
Contract Assets
| Contract Assets |
Assets Held for Sales
| Assets Held for Sales |
Non-Current Assets Due within a Year
| Non-Current Assets Due within a Year | 4,500,791.23 | 4,379,308.17 |
Other Current Assets
| Other Current Assets | 182,630,205.72 | 378,853,652.64 |
Total current assets
| Total current assets | 9,410,042,014.37 | 10,555,858,993.25 |
| Item | Closing Balance | Balance at the beginning of the period |
Non-current assets:
| Non-current assets: |
Loans and advances
| Loans and advances |
Debt Investment
| Debt Investment |
Other Debt Investments
| Other Debt Investments |
Long-Term Receivables
| Long-Term Receivables | 36,657,910.53 | 35,689,264.21 |
Long-Term Equity Investment
| Long-Term Equity Investment | 441,256,304.67 | 20,879,244.20 |
Other equity instrumentinvestments
| Other equity instrument investments |
Other Non-Current FinancialAssets
| Other Non-Current Financial Assets | 70,000,000.00 | 70,000,000.00 |
Investment Real Estates
| Investment Real Estates | 7,166,185.13 | 7,693,341.79 |
Fixed Assets
| Fixed Assets | 2,903,124,395.97 | 2,749,018,750.62 |
Construction in Progress
| Construction in Progress | 1,030,446,202.20 | 984,571,329.05 |
Productive Biological Assets
| Productive Biological Assets |
Oil and Gas Assets
| Oil and Gas Assets |
Right-of-Use Assets
| Right-of-Use Assets | 421,817,678.37 | 417,496,021.36 |
Intangible Assets
| Intangible Assets | 960,815,052.19 | 995,228,233.51 |
Including: data resources
| Including: data resources |
Development expenditure
| Development expenditure |
Including: data resources
| Including: data resources |
Goodwill
| Goodwill | 866,502,422.61 | 864,289,002.45 |
Long-Term Unamortized Expenses
| Long-Term Unamortized Expenses | 125,412,811.84 | 131,090,470.15 |
Deferred income tax assets
| Deferred income tax assets | 161,723,419.77 | 175,351,248.02 |
Other Non-Current Assets
| Other Non-Current Assets | 133,871,114.92 | 104,856,551.36 |
Total non-current assets
| Total non-current assets | 7,158,793,498.20 | 6,556,163,456.72 |
Total assets
| Total assets | 16,568,835,512.57 | 17,112,022,449.97 |
Current liabilities
| Current liabilities |
Short-Term Loans
| Short-Term Loans | 1,170,327,194.78 | 1,493,238,955.00 |
Borrowings from central bank
| Borrowings from central bank |
Borrowing funds
| Borrowing funds |
Tradable Financial Liabilities
| Tradable Financial Liabilities |
Derivative Financial Liabilities
| Derivative Financial Liabilities |
| Item | Closing Balance | Balance at the beginning of the period |
Notes Payable
| Notes Payable | 363,977,108.89 | 315,902,844.15 |
Accounts Payable
| Accounts Payable | 832,423,316.30 | 1,116,802,220.38 |
Advance from Customers
| Advance from Customers |
Contract Liabilities
| Contract Liabilities | 179,911,770.00 | 193,262,892.15 |
Financial assets sold for repurchase
| Financial assets sold for repurchase |
Deposits from customers and interbank
| Deposits from customers and interbank |
Acting trading securities
| Acting trading securities |
Acting underwriting securities
| Acting underwriting securities |
Payroll Payable
| Payroll Payable | 216,815,783.41 | 254,475,235.72 |
Taxes Payable
| Taxes Payable | 93,252,897.83 | 62,877,779.86 |
Other Payables
| Other Payables | 727,222,395.14 | 591,310,917.61 |
Including: Interest payable
| Including: Interest payable |
Dividends payable
| Dividends payable | 203,307,193.50 |
Fees and commissions payable
| Fees and commissions payable |
Dividend payable for reinsurance
| Dividend payable for reinsurance |
Liabilities Held for Sales
| Liabilities Held for Sales |
Non-Current Liabilities Due withinOne Year
| Non-Current Liabilities Due within One Year | 373,940,213.86 | 223,426,826.45 |
Other Current Liabilities
| Other Current Liabilities | 18,514,985.13 | 19,712,328.19 |
Total current liabilities
| Total current liabilities | 3,976,385,665.34 | 4,271,009,999.51 |
Non-current liabilities
| Non-current liabilities |
Reserve fund for insurance contracts
| Reserve fund for insurance contracts |
Long-Term Loans
| Long-Term Loans | 170,000,000.00 |
Bonds Payable
| Bonds Payable |
Including: preferred share
| Including: preferred share |
Perpetual bond
| Perpetual bond |
Lease Liabilities
| Lease Liabilities | 304,172,545.81 | 292,009,504.04 |
Long-Term Payable
| Long-Term Payable | 0.00 |
Long-Term Payroll Payable
| Long-Term Payroll Payable | 8,511,000.00 | 8,511,000.00 |
Estimated Liabilities
| Estimated Liabilities |
Deferred Income
| Deferred Income | 116,525,098.52 | 121,649,364.97 |
| Item | Closing Balance | Balance at the beginning of the period |
Deferred income tax liabilities
| Deferred income tax liabilities | 132,198,461.11 | 138,520,778.30 |
Other Non-Current Liabilities
| Other Non-Current Liabilities |
Total non-current liabilities
| Total non-current liabilities | 561,407,105.44 | 730,690,647.31 |
Total liabilities
| Total liabilities | 4,537,792,770.78 | 5,001,700,646.82 |
Owner’s equity:
| Owner’s equity: |
Capital Stock
| Capital Stock | 588,292,708.00 | 594,387,367.00 |
Other Equity Instruments
| Other Equity Instruments |
Including: preferred share
| Including: preferred share |
Perpetual bond
| Perpetual bond |
Capital Reserve
| Capital Reserve | 3,938,910,622.54 | 4,381,126,487.29 |
Less: treasury stock
| Less: treasury stock | 217,314,795.89 | 473,552,442.85 |
Other Comprehensive Income
| Other Comprehensive Income | -716,170.70 | 2,215,369.44 |
Special Reserve
| Special Reserve |
Surplus Reserve
| Surplus Reserve | 420,212,778.13 | 420,212,778.13 |
General risk provision
| General risk provision |
Undistributed Profit
| Undistributed Profit | 6,701,820,244.20 | 6,608,834,768.99 |
Total owners’ equities attributable to theowners of parent company
| Total owners’ equities attributable to the owners of parent company | 11,431,205,386.28 | 11,533,224,328.00 |
Minority equity
| Minority equity | 599,837,355.51 | 577,097,475.15 |
Total owners’ equities
| Total owners’ equities | 12,031,042,741.79 | 12,110,321,803.15 |
Total liabilities and owners’ equities
| Total liabilities and owners’ equities | 16,568,835,512.57 | 17,112,022,449.97 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
2. Balance Sheet of Parent Company
| Prepared by: Winner Medical Co., Ltd. | Unit: yuan |
| Item | Closing Balance | Balance at the beginning of the period |
Current assets:
| Current assets: |
Cash and cash equivalents
| Cash and cash equivalents | 2,844,394,239.85 | 3,709,959,628.26 |
Tradable Financial Assets
| Tradable Financial Assets | 2,424,523,614.28 | 2,723,751,837.29 |
Derivative Financial Assets
| Derivative Financial Assets |
Notes Receivable
| Notes Receivable | 2,139,017.54 | 4,467,239.17 |
Accounts Receivable
| Accounts Receivable | 385,544,279.91 | 329,056,250.56 |
Amounts Receivable Financing
| Amounts Receivable Financing | 15,349,054.92 | 3,373,685.21 |
Advances to Suppliers
| Advances to Suppliers | 860,470,380.86 | 819,879,677.04 |
Other Receivables
| Other Receivables | 116,045,259.43 | 116,040,893.47 |
Including: Interest receivable
| Including: Interest receivable |
Dividends receivable
| Dividends receivable |
Inventory
| Inventory | 230,042,380.58 | 251,311,204.70 |
Including: data resources
| Including: data resources |
Contract Assets
| Contract Assets |
Assets Held for Sales
| Assets Held for Sales |
Non-Current Assets Due within a Year
| Non-Current Assets Due within a Year | 4,500,791.23 | 4,379,308.17 |
Other Current Assets
| Other Current Assets | 134,461,309.68 | 219,250,046.91 |
Total current assets
| Total current assets | 7,017,470,328.28 | 8,181,469,770.78 |
Non-current assets:
| Non-current assets: |
Debt Investment
| Debt Investment |
Other Debt Investments
| Other Debt Investments |
Long-Term Receivables
| Long-Term Receivables | 36,657,910.53 | 35,689,264.21 |
Long-Term Equity Investment
| Long-Term Equity Investment | 4,057,908,988.99 | 3,628,308,515.87 |
Other equity instrument investments
| Other equity instrument investments |
Other Non-Current Financial Assets
| Other Non-Current Financial Assets | 70,000,000.00 | 70,000,000.00 |
Investment Real Estates
| Investment Real Estates |
Fixed Assets
| Fixed Assets | 40,367,376.01 | 39,029,180.33 |
| Item | Closing Balance | Balance at the beginning of the period |
Construction in Progress
| Construction in Progress | 142,980,344.54 | 81,523,183.74 |
Productive Biological Assets
| Productive Biological Assets |
Oil and Gas Assets
| Oil and Gas Assets |
Right-of-Use Assets
| Right-of-Use Assets | 42,580,000.88 | 53,018,721.37 |
Intangible Assets
| Intangible Assets | 41,711,541.25 | 42,201,830.86 |
Including: data resources
| Including: data resources |
Development expenditure
| Development expenditure |
Including: data resources
| Including: data resources |
Goodwill
| Goodwill |
Long-Term Unamortized Expenses
| Long-Term Unamortized Expenses | 16,956,750.16 | 19,425,804.21 |
Deferred income tax assets
| Deferred income tax assets | 40,699,279.19 | 38,890,354.71 |
Other Non-Current Assets
| Other Non-Current Assets | 26,295,710.30 | 41,395,668.54 |
Total non-current assets
| Total non-current assets | 4,516,157,901.85 | 4,049,482,523.84 |
Total assets
| Total assets | 11,533,628,230.13 | 12,230,952,294.62 |
Current liabilities
| Current liabilities |
Short-Term Loans
| Short-Term Loans | 910,130,600.00 | 1,270,138,900.00 |
Tradable Financial Liabilities
| Tradable Financial Liabilities |
Derivative Financial Liabilities
| Derivative Financial Liabilities |
Notes Payable
| Notes Payable | 77,345,909.80 | 104,617,096.39 |
Accounts Payable
| Accounts Payable | 272,597,560.96 | 247,993,184.23 |
Advance from Customers
| Advance from Customers |
Contract Liabilities
| Contract Liabilities | 80,776,953.02 | 90,354,800.16 |
Payroll Payable
| Payroll Payable | 47,500,861.38 | 62,965,400.32 |
Taxes Payable
| Taxes Payable | 13,546,668.36 | 2,852,502.16 |
Other Payables
| Other Payables | 522,057,520.98 | 358,800,377.50 |
Including: Interest payable
| Including: Interest payable |
Dividends payable
| Dividends payable | 203,307,193.50 |
Liabilities Held for Sales
| Liabilities Held for Sales |
Non-Current Liabilities Due withinOne Year
| Non-Current Liabilities Due within One Year | 204,810,167.93 | 47,239,311.11 |
Other Current Liabilities
| Other Current Liabilities | 3,828,775.12 | 4,700,685.90 |
| Item | Closing Balance | Balance at the beginning of the period |
Total current liabilities
| Total current liabilities | 2,132,595,017.55 | 2,189,662,257.77 |
Non-current liabilities
| Non-current liabilities |
Long-Term Loans
| Long-Term Loans | 170,000,000.00 |
Bonds Payable
| Bonds Payable |
Including: preferred share
| Including: preferred share |
Perpetual bond
| Perpetual bond |
Lease Liabilities
| Lease Liabilities | 42,792,761.26 | 51,992,935.59 |
Long-Term Payable
| Long-Term Payable |
Long-Term Payroll Payable
| Long-Term Payroll Payable |
Estimated Liabilities
| Estimated Liabilities |
Deferred Income
| Deferred Income | 560,602.11 | 1,312,817.62 |
Deferred income tax liabilities
| Deferred income tax liabilities | 9,965,639.42 | 8,333,039.89 |
Other Non-Current Liabilities
| Other Non-Current Liabilities |
Total non-current liabilities
| Total non-current liabilities | 53,319,002.79 | 231,638,793.10 |
Total liabilities
| Total liabilities | 2,185,914,020.34 | 2,421,301,050.87 |
Owner’s equity:
| Owner’s equity: |
Capital Stock
| Capital Stock | 588,292,708.00 | 594,387,367.00 |
Other Equity Instruments
| Other Equity Instruments |
Including: preferred share
| Including: preferred share |
Perpetual bond
| Perpetual bond |
Capital Reserve
| Capital Reserve | 3,938,164,250.05 | 4,380,380,114.80 |
Less: treasury stock
| Less: treasury stock | 217,314,795.89 | 473,552,442.85 |
Other Comprehensive Income
| Other Comprehensive Income |
Special Reserve
| Special Reserve |
Surplus Reserve
| Surplus Reserve | 411,397,111.21 | 411,397,111.21 |
Undistributed Profit
| Undistributed Profit | 4,627,174,936.42 | 4,897,039,093.59 |
Total owners’ equities
| Total owners’ equities | 9,347,714,209.79 | 9,809,651,243.75 |
Total liabilities and owners’ equities
| Total liabilities and owners’ equities | 11,533,628,230.13 | 12,230,952,294.62 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
3. Consolidated Statement of Income
| Prepared by: Winner Medical Co., Ltd. | Unit: yuan |
| Item | HY 2024 | HY 2023 |
I. Total revenue
| I. Total revenue | 4,033,505,104.33 | 4,266,838,038.66 |
Including: Revenue
| Including: Revenue | 4,033,505,104.33 | 4,266,838,038.66 |
Interest revenue
| Interest revenue |
Premium earned
| Premium earned |
Fee and commission income
| Fee and commission income |
II. Operating cost
| II. Operating cost | 3,576,014,244.81 | 3,500,655,804.36 |
Including: Cost of sale
| Including: Cost of sale | 2,068,470,442.58 | 2,071,428,206.72 |
Interest expenditure
| Interest expenditure |
Fee and commission expense
| Fee and commission expense |
Surrender value
| Surrender value |
Net payments for insurance claims
| Net payments for insurance claims |
Net reserve fund extracted for insurance liability
| Net reserve fund extracted for insurance liability |
Bond insurance expense
| Bond insurance expense |
Reinsurance costs
| Reinsurance costs |
Taxes and Surcharges
| Taxes and Surcharges | 36,656,279.12 | 37,346,208.61 |
Selling Expenses
| Selling Expenses | 1,055,741,084.22 | 960,442,911.44 |
Administrative Expenses
| Administrative Expenses | 309,446,026.40 | 289,596,702.14 |
R&D Expenses
| R&D Expenses | 143,142,952.33 | 194,636,202.14 |
Financial Expenses
| Financial Expenses | -37,442,539.84 | -52,794,426.69 |
Including: interest expenditure
| Including: interest expenditure | 24,015,659.66 | 32,891,514.25 |
Interest revenue
| Interest revenue | 57,012,846.01 | 69,863,134.66 |
Plus: other incomes
| Plus: other incomes | 37,282,933.10 | 46,680,694.51 |
Income from investment (loss expressed with “—”)
| Income from investment (loss expressed with “—”) | 33,445,096.19 | 39,412,441.13 |
Including: Income from investment of joint venture andcooperative enterprise
| Including: Income from investment of joint venture and cooperative enterprise | -7,669,213.76 | 1,580,818.74 |
Income from derecognition of financial assetsmeasured at amortized cost
| Income from derecognition of financial assets measured at amortized cost |
Exchange gain (loss expressed with “—”)
| Exchange gain (loss expressed with “—”) |
Net exposure hedging gain (loss expressed with “—”)
| Net exposure hedging gain (loss expressed with “—”) |
| Item | HY 2024 | HY 2023 |
Income from fair value changes (loss expressed with “—”)
| Income from fair value changes (loss expressed with “—”) | 7,577,712.84 | 59,639,836.03 |
Credit impairment losses (loss expressed with “—”)
| Credit impairment losses (loss expressed with “—”) | -8,295,817.44 | 2,831,973.61 |
Assets impairment losses (loss expressed with “—”)
| Assets impairment losses (loss expressed with “—”) | -55,975,503.16 | -100,794,883.37 |
Income from disposal of assets (loss expressed with “—”)
| Income from disposal of assets (loss expressed with “—”) | 1,930,800.28 | 5,324,751.10 |
III. Operating profit (loss to be filled out with the minus sign “—”)
| III. Operating profit (loss to be filled out with the minus sign “—”) | 473,456,081.33 | 819,277,047.31 |
Plus: Non-revenue
| Plus: Non-revenue | 6,143,356.51 | 6,702,598.77 |
Less: non-operating expenditure
| Less: non-operating expenditure | 6,218,160.01 | 4,906,948.03 |
IV. Total profit (total loss to be filled out with the minus sign “—”)
| IV. Total profit (total loss to be filled out with the minus sign “—”) | 473,381,277.83 | 821,072,698.05 |
Less: Income tax expenses
| Less: Income tax expenses | 67,151,050.24 | 114,886,459.15 |
V. Net profit (net loss to be filled out with the minus sign “—”)
| V. Net profit (net loss to be filled out with the minus sign “—”) | 406,230,227.59 | 706,186,238.90 |
(I) Classified by business continuity
| (I) Classified by business continuity |
1. Net profits from going concern (net loss expressed with “—”)
| 1. Net profits from going concern (net loss expressed with “—”) | 406,230,227.59 | 706,186,238.90 |
2. Net profits from discontinuing operation (net loss expressed with “—”)
| 2. Net profits from discontinuing operation (net loss expressed with “—”) |
(II) Classified by ownership
| (II) Classified by ownership |
1. Net profit attributable to shareholders of parent company (net loss
expressed with “—”)
| 1. Net profit attributable to shareholders of parent company (net loss expressed with “—”) | 384,150,379.21 | 681,617,022.69 |
2. Minority interest income (net loss expressed with “—”)
| 2. Minority interest income (net loss expressed with “—”) | 22,079,848.38 | 24,569,216.21 |
VI. Net amount of other comprehensive income after tax
| VI. Net amount of other comprehensive income after tax | -5,381,735.14 | 2,650,491.58 |
Net amount of other comprehensive income after tax attributed to parentcompany owners
| Net amount of other comprehensive income after tax attributed to parent company owners | -2,931,540.14 | 1,563,872.28 |
(I) Other comprehensive income that can’t be reclassified into profit andloss
| (I) Other comprehensive income that can’t be reclassified into profit and loss |
1. Remeasure the variation of net indebtedness or net asset of defined
benefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income subsequently unable to be classified into
the profits or losses based on equity method
| 2. Other comprehensive income subsequently unable to be classified into the profits or losses based on equity method |
3. Changes in fair value for other equity instruments investment
| 3. Changes in fair value for other equity instruments investment |
4. Changes in fair value for the enterprise credit risks
| 4. Changes in fair value for the enterprise credit risks |
5. Others
| 5. Others |
(II) Other comprehensive income that will be reclassified into profit andloss
| (II) Other comprehensive income that will be reclassified into profit and loss | -2,931,540.14 | 1,563,872.28 |
1. Other comprehensive income that will be reclassified into profit and loss
in the invested enterprise under equity method
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Changes in fair value for other debt investment
| 2. Changes in fair value for other debt investment |
3. The amount of financial asset subsequently to be reclassified into other
comprehensive income
| 3. The amount of financial asset subsequently to be reclassified into other comprehensive income |
4. Provisions for impairment of other debt investment
| 4. Provisions for impairment of other debt investment |
5. Cash flow hedge
| 5. Cash flow hedge |
| Item | HY 2024 | HY 2023 |
6. Balance arising from the translation of foreign currency
financial statements
| 6. Balance arising from the translation of foreign currency financial statements | -2,931,540.14 | 1,563,872.28 |
7. Others
| 7. Others |
Net amount of other comprehensive income after tax attributed tominority shareholders
| Net amount of other comprehensive income after tax attributed to minority shareholders | -2,450,195.00 | 1,086,619.30 |
VII. Total comprehensive income
| VII. Total comprehensive income | 400,848,492.45 | 708,836,730.48 |
Total comprehensive income attributed to parent company owners
| Total comprehensive income attributed to parent company owners | 381,218,839.07 | 683,180,894.97 |
Total comprehensive income attributed to minority shareholders
| Total comprehensive income attributed to minority shareholders | 19,629,653.38 | 25,655,835.51 |
VIII. Earnings per share:
| VIII. Earnings per share: |
(I) Basic earnings per share
| (I) Basic earnings per share | 0.6568 | 1.1599 |
(II) Diluted earnings per share
| (II) Diluted earnings per share | 0.6568 | 1.1599 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
4. Income Statement of Parent Company
| Prepared by: Winner Medical Co., Ltd. | Unit: yuan |
| Item | HY 2024 | HY 2023 |
I. Revenue
| I. Revenue | 1,142,885,165.37 | 1,688,984,838.44 |
Subtract: Cost of sale
| Subtract: Cost of sale | 843,883,491.16 | 1,107,234,465.65 |
Taxes and Surcharges
| Taxes and Surcharges | 2,846,781.23 | 6,199,059.31 |
Selling Expenses
| Selling Expenses | 187,126,269.52 | 171,944,157.54 |
Administrative Expenses
| Administrative Expenses | 113,371,192.10 | 119,410,984.58 |
R&D Expenses
| R&D Expenses | 35,362,397.99 | 67,280,160.05 |
Financial Expenses
| Financial Expenses | -39,776,317.53 | -54,781,345.93 |
Including: interest expenditure
| Including: interest expenditure | 12,318,004.15 | 21,619,496.73 |
Interest revenue
| Interest revenue | 49,479,261.49 | 63,513,874.74 |
Plus: other incomes
| Plus: other incomes | 3,495,598.59 | 9,242,864.74 |
Income from investment (loss expressed with “—”)
| Income from investment (loss expressed with “—”) | 39,088,282.06 | 33,524,358.49 |
Including: Income from investment of joint venture andcooperative enterprise
| Including: Income from investment of joint venture and cooperative enterprise | 115,196.26 | 1,580,818.74 |
Income from derecognition of financial assetsmeasured at amortized cost
| Income from derecognition of financial assets measured at amortized cost |
Net exposure hedging gain (loss expressed with “—”)
| Net exposure hedging gain (loss expressed with “—”) |
Income from fair value changes (loss expressed with “—”)
| Income from fair value changes (loss expressed with “—”) | 8,771,776.99 | 58,989,477.64 |
Credit impairment losses (loss expressed with “—”)
| Credit impairment losses (loss expressed with “—”) | -3,330,023.26 | 4,720,507.23 |
Assets impairment losses (loss expressed with “—”)
| Assets impairment losses (loss expressed with “—”) | -29,827,536.85 | -57,802,348.67 |
Income from disposal of assets (loss expressed with “—”)
| Income from disposal of assets (loss expressed with “—”) | -5,882.01 | 0.00 |
II. Operating profit (loss to be filled out with the minus sign “—”)
| II. Operating profit (loss to be filled out with the minus sign “—”) | 18,263,566.42 | 320,372,216.67 |
Plus: Non-revenue
| Plus: Non-revenue | 2,874,156.67 | 2,045,766.35 |
Less: non-operating expenditure
| Less: non-operating expenditure | 13,301.22 | 167,212.91 |
III. Total profit (total loss to be filled out with the minus sign “—”)
| III. Total profit (total loss to be filled out with the minus sign “—”) | 21,124,421.87 | 322,250,770.11 |
Less: Income tax expenses
| Less: Income tax expenses | -176,324.95 | 43,991,014.19 |
IV. Net profit (net loss to be filled out with the minus sign “—”)
| IV. Net profit (net loss to be filled out with the minus sign “—”) | 21,300,746.82 | 278,259,755.92 |
(I) Net profits from going concern (net loss expressed with “—”)
| (I) Net profits from going concern (net loss expressed with “—”) | 21,300,746.82 | 278,259,755.92 |
(II) Net profits from discontinuing operation (net loss expressed with“—”)
| (II) Net profits from discontinuing operation (net loss expressed with “—”) |
V. Net amount of other comprehensive income after tax
| V. Net amount of other comprehensive income after tax |
| Item | HY 2024 | HY 2023 |
(I) Other comprehensive income that can’t bereclassified into profit and loss
| (I) Other comprehensive income that can’t be reclassified into profit and loss |
1. Remeasure the variation of net indebtedness
or net asset of defined benefit plan
| 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan |
2. Other comprehensive income subsequently
unable to be classified into the profits or lossesbased on equity method
| 2. Other comprehensive income subsequently unable to be classified into the profits or losses based on equity method |
3. Changes in fair value for other equity
instruments investment
| 3. Changes in fair value for other equity instruments investment |
4. Changes in fair value for the enterprise credit
risks
| 4. Changes in fair value for the enterprise credit risks |
5. Others
| 5. Others |
(II) Other comprehensive income that will bereclassified into profit and loss
| (II) Other comprehensive income that will be reclassified into profit and loss |
1. Other comprehensive income that will be
reclassified into profit and loss in the investedenterprise under equity method
| 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method |
2. Changes in fair value for other debt
investment
| 2. Changes in fair value for other debt investment |
3. The amount of financial asset subsequently to be reclassified into other comprehensive income
3. The amount of financial asset subsequently to be reclassified into other comprehensive income
4. Provisions for impairment of other debt
investment
| 4. Provisions for impairment of other debt investment |
5. Cash flow hedge
| 5. Cash flow hedge |
6. Balance arising from the translation of foreign
currency financial statements
| 6. Balance arising from the translation of foreign currency financial statements |
7. Others
| 7. Others |
VI. Total comprehensive income
| VI. Total comprehensive income | 21,300,746.82 | 278,259,755.92 |
VII. Earnings per share:
| VII. Earnings per share: |
(I) Basic earnings per share
| (I) Basic earnings per share |
(II) Diluted earnings per share
| (II) Diluted earnings per share |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
5. Consolidated Statement of Cash Flow
| Prepared by: Winner Medical Co., Ltd. | Unit: yuan |
| Item | HY 2024 | HY 2023 |
I. Cash flow from financing activities:
| I. Cash flow from financing activities: |
Cash from selling goods or offering labor
| Cash from selling goods or offering labor | 3,990,560,078.41 | 4,149,289,686.79 |
Net increase of customer deposit and deposit from otherbanks
| Net increase of customer deposit and deposit from other banks |
Net increase of borrowings from central bank
| Net increase of borrowings from central bank |
Net increase of borrowing funds from other financialinstitutions
| Net increase of borrowing funds from other financial institutions |
Cash from obtaining original insurance contract premium
| Cash from obtaining original insurance contract premium |
Cash received from insurance premium of originalinsurance contract
| Cash received from insurance premium of original insurance contract |
Net increase of deposit and investment of insured
| Net increase of deposit and investment of insured |
Cash from interest, handling charges and commissions
| Cash from interest, handling charges and commissions |
Net increase of borrowing funds
| Net increase of borrowing funds |
Net increase of repurchase of business funds
| Net increase of repurchase of business funds |
Net cash from acting trading securities
| Net cash from acting trading securities |
Refund of tax and levies
| Refund of tax and levies | 65,619,772.70 | 39,145,772.95 |
Other cash received related to operating activities
| Other cash received related to operating activities | 55,894,748.84 | 152,209,281.69 |
Subtotal of cash inflow from operating activities
| Subtotal of cash inflow from operating activities | 4,112,074,599.95 | 4,340,644,741.43 |
Cash paid to buy products and accept labor services
| Cash paid to buy products and accept labor services | 2,474,941,986.21 | 2,347,177,845.94 |
Net increase of customer loans and advances
| Net increase of customer loans and advances |
Net increase of amount due from central bank andinterbank
| Net increase of amount due from central bank and interbank |
Cash paid for original insurance contract claims payment
| Cash paid for original insurance contract claims payment |
Net increase of lending funds
| Net increase of lending funds |
Cash paid for interest, handling charges and commissions
| Cash paid for interest, handling charges and commissions |
Cash paid for policy dividend
| Cash paid for policy dividend |
Cash paid to and for employees
| Cash paid to and for employees | 866,973,104.55 | 945,931,347.90 |
Taxes and fees paid
| Taxes and fees paid | 229,343,272.00 | 539,168,797.14 |
Other cash paid related to operating activities
| Other cash paid related to operating activities | 347,482,720.43 | 350,188,037.56 |
Subtotal of cash outflow from operating activities
| Subtotal of cash outflow from operating activities | 3,918,741,083.19 | 4,182,466,028.54 |
Net cash flow from operating activities
| Net cash flow from operating activities | 193,333,516.76 | 158,178,712.89 |
| Item | HY 2024 | HY 2023 |
II. Cash flow from investment activities:
| II. Cash flow from investment activities: |
Cash from investment withdrawal
| Cash from investment withdrawal | 1,464,000,000.00 | 3,567,682,315.00 |
Cash from investment income
| Cash from investment income | 106,178,840.35 | 74,573,040.85 |
Net cash from disposal of fixed assets, intangible assets and other long-term assets
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 1,341,937.98 | 3,744,427.60 |
Net cash received from the disposal of subsidiaries and other businessentities
| Net cash received from the disposal of subsidiaries and other business entities |
Other cash received related to investment activities
| Other cash received related to investment activities |
Subtotal of cash inflow from investment activities
| Subtotal of cash inflow from investment activities | 1,571,520,778.33 | 3,645,999,783.45 |
Cash paid for the purchase and construction of fixed assets, intangibleassets and other long-term assets
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 436,264,526.19 | 423,829,164.39 |
Cash paid for investment
| Cash paid for investment | 1,559,074,000.00 | 2,820,573,504.00 |
Net cash received from reinsurance business
| Net cash received from reinsurance business |
Net cash paid for obtaining subsidiaries and other business units
| Net cash paid for obtaining subsidiaries and other business units | 55,605.69 | 21,176,136.32 |
Other cash paid related to investment activities
| Other cash paid related to investment activities |
Subtotal of cash outflow from investment activities
| Subtotal of cash outflow from investment activities | 1,995,394,131.88 | 3,265,578,804.71 |
Net cash flow from investing activities
| Net cash flow from investing activities | -423,873,353.55 | 380,420,978.74 |
III. Cash flow from financing activities:
| III. Cash flow from financing activities: |
Receipts from equity securities
| Receipts from equity securities | 200,000.00 |
Including: Cash received from subsidies’ absorption of minorityshareholders’ investment
| Including: Cash received from subsidies’ absorption of minority shareholders’ investment | 200,000.00 |
Cash received from borrowings
| Cash received from borrowings | 1,170,196,567.28 | 1,113,000,000.00 |
Other cash received related to financing activities
| Other cash received related to financing activities | 180,000,000.00 | 50,000,000.00 |
Subtotal of cash inflow from financial activities
| Subtotal of cash inflow from financial activities | 1,350,396,567.28 | 1,163,000,000.00 |
Cash repayments of amounts borrowed
| Cash repayments of amounts borrowed | 1,503,100,000.00 | 1,453,050,000.00 |
Cash paid for distribution of dividends or profits and for interestexpenses
| Cash paid for distribution of dividends or profits and for interest expenses | 99,563,509.69 | 281,994,493.51 |
Including: Dividends and profits paid by subsidiaries to minorityshareholders
| Including: Dividends and profits paid by subsidiaries to minority shareholders |
Other cash paid related to financing activities
| Other cash paid related to financing activities | 308,629,278.45 | 106,678,094.74 |
Subtotal of cash outflow from financial activities
| Subtotal of cash outflow from financial activities | 1,911,292,788.14 | 1,841,722,588.25 |
Net cash flow from financing activities
| Net cash flow from financing activities | -560,896,220.86 | -678,722,588.25 |
IV. Impact of exchange rate movements on cash and cash equivalents
| IV. Impact of exchange rate movements on cash and cash equivalents | 8,094,521.16 | 5,741,177.61 |
V. Net increase in cash and cash equivalents
| V. Net increase in cash and cash equivalents | -783,341,536.49 | -134,381,719.01 |
Plus: Balance of cash and cash equivalents at the beginning of the period
| Plus: Balance of cash and cash equivalents at the beginning of the period | 4,677,340,782.45 | 4,370,821,958.17 |
VI. Balance of cash and cash equivalents at end of period
| VI. Balance of cash and cash equivalents at end of period | 3,893,999,245.96 | 4,236,440,239.16 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
6. Cash Flow Statement of Parent Company
| Prepared by: Winner Medical Co., Ltd. | Unit: yuan |
| Item | HY 2024 | HY 2023 |
I. Cash flow from financing activities:
| I. Cash flow from financing activities: |
Cash from selling goods or offering labor
| Cash from selling goods or offering labor | 1,461,979,627.57 | 2,009,939,115.28 |
Refund of tax and levies
| Refund of tax and levies | 48,183,207.49 | 30,090,751.05 |
Other cash received related to operating activities
| Other cash received related to operating activities | 12,521,749.16 | 127,280,729.54 |
Subtotal of cash inflow from operating activities
| Subtotal of cash inflow from operating activities | 1,522,684,584.22 | 2,167,310,595.87 |
Cash paid to buy products and accept labor services
| Cash paid to buy products and accept labor services | 540,875,383.95 | 793,781,802.03 |
Cash paid to and for employees
| Cash paid to and for employees | 198,607,174.73 | 270,071,817.38 |
Taxes and fees paid
| Taxes and fees paid | 3,548,498.60 | 188,487,201.67 |
Other cash paid related to operating activities
| Other cash paid related to operating activities | 225,362,322.31 | 545,109,264.17 |
Subtotal of cash outflow from operating activities
| Subtotal of cash outflow from operating activities | 968,393,379.59 | 1,797,450,085.25 |
Net cash flow from operating activities
| Net cash flow from operating activities | 554,291,204.63 | 369,860,510.62 |
II. Cash flow from investment activities:
| II. Cash flow from investment activities: |
Cash from investment withdrawal
| Cash from investment withdrawal | 1,214,000,000.00 | 2,651,995,000.00 |
Cash from investment income
| Cash from investment income | 102,459,308.04 | 66,170,519.75 |
Net cash from disposal of fixed assets, intangible assets and other long-term assets
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 289,861.38 | 3,011,395.00 |
Net cash received from the disposal of subsidiaries and other businessentities
| Net cash received from the disposal of subsidiaries and other business entities |
Other cash received related to investment activities
| Other cash received related to investment activities |
Subtotal of cash inflow from investment activities
| Subtotal of cash inflow from investment activities | 1,316,749,169.42 | 2,721,176,914.75 |
Cash paid for the purchase and construction of fixed assets, intangibleassets and other long-term assets
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 97,016,023.57 | 68,641,277.60 |
Cash paid for investment
| Cash paid for investment | 1,334,074,000.00 | 2,123,934,344.00 |
Net cash paid for obtaining subsidiaries and other business units
| Net cash paid for obtaining subsidiaries and other business units |
Other cash paid related to investment activities
| Other cash paid related to investment activities |
Subtotal of cash outflow from investment activities
| Subtotal of cash outflow from investment activities | 1,431,090,023.57 | 2,192,575,621.60 |
Net cash flow from investing activities
| Net cash flow from investing activities | -114,340,854.15 | 528,601,293.15 |
III. Cash flow from financing activities:
| III. Cash flow from financing activities: |
Receipts from equity securities
| Receipts from equity securities |
Cash received from borrowings
| Cash received from borrowings | 200,000,000.00 | 400,000,000.00 |
| Item | HY 2024 | HY 2023 |
Other cash received related to financing activities
| Other cash received related to financing activities | 80,000,000.00 | 50,000,000.00 |
Subtotal of cash inflow from financial activities
| Subtotal of cash inflow from financial activities | 280,000,000.00 | 450,000,000.00 |
Cash repayments of amounts borrowed
| Cash repayments of amounts borrowed | 1,280,000,000.00 | 1,280,000,000.00 |
Cash paid for distribution of dividends or profits and forinterest expenses
| Cash paid for distribution of dividends or profits and for interest expenses | 99,293,133.63 | 257,603,321.30 |
Other cash paid related to financing activities
| Other cash paid related to financing activities | 208,415,552.24 | 11,308,615.92 |
Subtotal of cash outflow from financial activities
| Subtotal of cash outflow from financial activities | 1,587,708,685.87 | 1,548,911,937.22 |
Net cash flow from financing activities
| Net cash flow from financing activities | -1,307,708,685.87 | -1,098,911,937.22 |
IV. Impact of exchange rate movements on cash and cash
equivalents
| IV. Impact of exchange rate movements on cash and cash equivalents | 2,169,362.18 | 3,014,936.71 |
V. Net increase in cash and cash equivalents
| V. Net increase in cash and cash equivalents | -865,588,973.21 | -197,435,196.74 |
Plus: Balance of cash and cash equivalents at the beginningof the period
| Plus: Balance of cash and cash equivalents at the beginning of the period | 3,709,747,259.03 | 3,540,343,438.87 |
VI. Balance of cash and cash equivalents at end of period
| VI. Balance of cash and cash equivalents at end of period | 2,844,158,285.82 | 3,342,908,242.13 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
7. Consolidated Statement of Changes in Owners’ Equity
| Prepared by: Winner Medical Co., Ltd. | Current period amount | Unit: yuan |
| Item | Semiannual 2024 | ||||||||||||||
| Owners’ equities attributable to the owners of parent company | Minority equity | Total owners’ equities | |||||||||||||
| Capital Stock | Other Equity Instruments | Capital Reserve | Less: treasury stock | Other Comprehensive Income | Special Reserve | Surplus Reserve | General risk provision | Undistributed Profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
I. Closing balance of the
previous year
| I. Closing balance of the previous year | 594,387,367.00 | 4,381,126,487.29 | 473,552,442.85 | 2,215,369.44 | 420,212,778.13 | 6,608,834,768.99 | 11,533,224,328.00 | 577,097,475.15 | 12,110,321,803.15 |
Plus: Changes in accountingpolicies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
Others
| Others |
II. Beginning balance incurrent year
| II. Beginning balance in current year | 594,387,367.00 | 4,381,126,487.29 | 473,552,442.85 | 2,215,369.44 | 420,212,778.13 | 6,608,834,768.99 | 11,533,224,328.00 | 577,097,475.15 | 12,110,321,803.15 |
III. Increase/decrease in the
current period (less to be filledout with the minus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | -6,094,659.00 | -442,215,864.75 | -256,237,646.96 | -2,931,540.14 | 92,985,475.21 | -102,018,941.72 | 22,739,880.36 | -79,279,061.36 |
(I) Total comprehensive
income
| (I) Total comprehensive income | -2,931,540.14 | 384,150,379.21 | 381,218,839.07 | 19,629,653.38 | 400,848,492.45 |
(II) Owners invested and
decreased capital
| (II) Owners invested and decreased capital | 2,908,958.42 | 2,908,958.42 | 0.00 | 2,908,958.42 |
1. Common stock invested by
the owner
| 1. Common stock invested by the owner | 0.00 | 0.00 | 0.00 |
2. Capital invested by other
equity instrument holders
| 2. Capital invested by other equity instrument holders | 0.00 | 0.00 | 0.00 |
3. Amount of share-based
payment included in theowner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 2,908,958.42 | 2,908,958.42 | 0.00 | 2,908,958.42 |
4. Others
| 4. Others | 0.00 | 0.00 | 0.00 |
(III) Profit distribution
| (III) Profit distribution | -291,164,904.00 | -291,164,904.00 | 0.00 | -291,164,904.00 |
1. Withdrawal of surplus
reserves
| 1. Withdrawal of surplus reserves | 0.00 | 0.00 | 0.00 |
2. Withdrawal of general risk
preparation
| 2. Withdrawal of general risk preparation | 0.00 | 0.00 | 0.00 |
3. Distribution of owners (or
shareholders)
| 3. Distribution of owners (or shareholders) | -291,164,904.00 | -291,164,904.00 | 0.00 | -291,164,904.00 |
4. Others
| 4. Others | 0.00 | 0.00 | 0.00 |
(IV) Internal transfer of
owner’s equity
| (IV) Internal transfer of owner’s equity | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
1. Capital surplus transfer to
paid-in capital (or capitalstock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) | 0.00 | 0.00 | 0.00 |
2. Earned surplus transfer to
paid-in capital (or capitalstock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) | 0.00 | 0.00 | 0.00 |
3. Earned surplus covering the
deficit
| 3. Earned surplus covering the deficit | 0.00 | 0.00 | 0.00 |
4. Carryforward retained
earnings in variation of definedbenefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan | 0.00 | 0.00 | 0.00 |
5. Carryforward retained
earnings of othercomprehensive income
| 5. Carryforward retained earnings of other comprehensive income | 0.00 | 0.00 | 0.00 |
6. Others
| 6. Others | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(V) Special Reserve
| (V) Special Reserve | 0.00 | 0.00 | 0.00 |
1. Draw in this current
| 1. Draw in this current | 0.00 | 0.00 | 0.00 |
2. Use in this current
| 2. Use in this current | 0.00 | 0.00 | 0.00 |
(VI) Others
| (VI) Others | 194,981,835.21 | -194,981,835.21 | 3,110,226.98 | -191,871,608.23 |
IV. Balance at the end ofcurrent period
| IV. Balance at the end of current period | 588,292,708.00 | 3,938,910,622.54 | 217,314,795.89 | -716,170.70 | 420,212,778.13 | 6,701,820,244.20 | 11,431,205,386.28 | 599,837,355.51 | 12,031,042,741.79 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
7. Consolidated Statement of Change in Equity (Continued)
| Prepared by: Winner Medical Co., Ltd. | Prior year amount | Unit: yuan |
| Item | Semiannual 2024 | ||||||||||||||
| Owners’ equities attributable to the owners of parent company | Minority equity | Total owners’ equities | |||||||||||||
| Capital Stock | Other Equity Instruments | Capital Reserve | Less: treasury stock | Other Comprehensive Income | Special Reserve | Surplus Reserve | General risk provision | Undistributed Profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
I. Closing balance of the
previous year
| I. Closing balance of the previous year | 426,492,308.00 | 4,546,247,611.24 | 500,082,734.11 | 782,778.15 | 420,212,778.13 | 6,810,953,829.30 | 11,704,606,570.71 | 478,161,435.74 | 12,182,768,006.45 |
Plus: Changes in accountingpolicies
| Plus: Changes in accounting policies | 15,161,518.35 | 15,161,518.35 | 15,161,518.35 |
Prior period error correction
| Prior period error correction |
Others
| Others |
II. Beginning balance incurrent year
| II. Beginning balance in current year | 426,492,308.00 | 4,546,247,611.24 | 500,082,734.11 | 782,778.15 | 420,212,778.13 | 6,826,115,347.65 | 11,719,768,089.06 | 478,161,435.74 | 12,197,929,524.80 |
III. Increase or decrease in thecurrent period Amount(less to be filled out with theminus sign “-)
| III. Increase or decrease in the current period Amount (less to be filled out with the minus sign “-) | 167,895,059.00 | -166,925,686.35 | 1,563,872.28 | -115,884,510.42 | -113,351,265.49 | 39,720,355.84 | -73,630,909.65 |
(I) Total comprehensive
income
| (I) Total comprehensive income | 1,563,872.28 | 681,617,022.68 | 683,180,894.96 | 25,655,835.51 | 708,836,730.47 |
(II) Owner’s invested and
decreased capital
| (II) Owner’s invested and decreased capital | 969,372.65 | 969,372.65 | 0.00 | 969,372.65 |
1. Common stock invested by
the owner
| 1. Common stock invested by the owner | 0.00 | 0.00 | 0.00 |
2. Capital invested by other
equity instrument holders
| 2. Capital invested by other equity instrument holders | 0.00 | 0.00 | 0.00 |
3. Amount of share-based
payment included in theowner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 969,372.65 | 969,372.65 | 0.00 | 969,372.65 |
4. Others
| 4. Others | 0.00 |
(III) Profit distribution
| (III) Profit distribution | -797,501,533.10 | -797,501,533.10 | 0.00 | -797,501,533.10 |
1. Withdrawal of surplus
reserves
| 1. Withdrawal of surplus reserves | 0.00 |
2. Withdrawal of general risk
preparation
| 2. Withdrawal of general risk preparation | 0.00 |
3. Distribution of owners (or
shareholders)
| 3. Distribution of owners (or shareholders) | -797,501,533.10 | -797,501,533.10 | 0.00 | -797,501,533.10 |
4. Others
| 4. Others | 0.00 |
(IV) Internal transfer ofowner’s equity
| (IV) Internal transfer of owner’s equity | 167,895,059.00 | -167,895,059.00 | 0.00 |
1. Capital surplus transfer to
paid-in capital (or capitalstock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) | 167,895,059.00 | -167,895,059.00 | 0.00 |
2. Earned surplus transfer to
paid-in capital (or capitalstock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) | 0.00 |
3. Earned surplus covering the
deficit
| 3. Earned surplus covering the deficit | 0.00 |
4. Carryforward retained
earnings in variation of definedbenefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan | 0.00 |
5. Carryforward retained
earnings of othercomprehensive income
| 5. Carryforward retained earnings of other comprehensive income | 0.00 |
6. Others
| 6. Others | 0.00 |
(V) Special Reserve
| (V) Special Reserve | 0.00 |
1. Draw in this current
| 1. Draw in this current | 0.00 |
2. Use in this current
| 2. Use in this current | 0.00 |
(VI) Others
| (VI) Others | 0.00 | 14,064,520.33 | 14,064,520.33 |
IV. Balance at the end ofcurrent period
| IV. Balance at the end of current period | 594,387,367.00 | 4,379,321,924.89 | 500,082,734.11 | 2,346,650.43 | 420,212,778.13 | 6,710,230,837.23 | 11,606,416,823.57 | 517,881,791.58 | 12,124,298,615.15 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
8. Statement on Changes in Owners’ Equity of Parent Company
| Prepared by: Winner Medical Co., Ltd. | Current period amount | Unit: yuan |
| Item | Semiannual 2024 | |||||||||||
| Capital Stock | Other Equity Instruments | Capital Reserve | Less: treasury stock | Other Comprehensive Income | Special Reserve | Surplus Reserve | Undistributed Profit | Others | Total owners’ equities | |||
| Preferred share | Perpetual bond | Others | ||||||||||
I. Closing balance of the previous
year
| I. Closing balance of the previous year | 594,387,367.00 | 4,380,380,114.80 | 473,552,442.85 | 411,397,111.21 | 4,897,039,093.59 | 9,809,651,243.75 |
Plus: Changes in accountingpolicies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
Others
| Others |
II. Beginning balance in currentyear
| II. Beginning balance in current year | 594,387,367.00 | 4,380,380,114.80 | 473,552,442.85 | 411,397,111.21 | 4,897,039,093.59 | 9,809,651,243.75 |
III. Increase/decrease in the currentperiod (less to be filled out with theminus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | -6,094,659.00 | -442,215,864.75 | -256,237,646.96 | -269,864,157.17 | -461,937,033.96 |
(I) Total comprehensive income
| (I) Total comprehensive income | 21,300,746.83 | 21,300,746.83 |
(II) Owner’s invested and
decreased capital
| (II) Owner’s invested and decreased capital | 2,908,958.42 | 2,908,958.42 |
1. Common stock invested by the
owner
| 1. Common stock invested by the owner |
2. Capital invested by other equity
instrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-based payment
included in the owner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 2,908,958.42 | 2,908,958.42 |
4. Others
| 4. Others |
(III) Profit distribution
| (III) Profit distribution | -291,164,904.00 | -291,164,904.00 |
1. Withdrawal of surplus reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of owners (or
shareholders)
| 2. Distribution of owners (or shareholders) | -291,164,904.00 | -291,164,904.00 |
3. Others
| 3. Others |
(IV) Internal transfer of owner’sequity
| (IV) Internal transfer of owner’s equity | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 |
1. Capital surplus transfer to paid-in
capital (or capital stock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus transfer to paid-in
capital (or capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus covering the
deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained earnings
in variation of defined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained earnings
of other comprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
6. Others
| 6. Others | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 |
(V) Special Reserve
| (V) Special Reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Others
| (VI) Others | 194,981,835.21 | -194,981,835.21 |
IV. Balance at the end of currentperiod
| IV. Balance at the end of current period | 588,292,708.00 | 3,938,164,250.05 | 217,314,795.89 | 411,397,111.21 | 4,627,174,936.42 | 9,347,714,209.79 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
8. Statement of Change in Equity of Parent Company (Continued)
| Prepared by: Winner Medical Co., Ltd. | Previous period amount | Unit: yuan |
| Item | Semiannual 2024 | |||||||||||
| Capital Stock | Other Equity Instruments | Capital Reserve | Less: treasury stock | Other Comprehensive Income | Special Reserve | Surplus Reserve | Undistributed Profit | Others | Total owners’ equities | |||
| Preferred share | Perpetual bond | Others | ||||||||||
I. Closing balance of the previous
year
| I. Closing balance of the previous year | 594,387,367.00 | 4,380,380,114.80 | 473,552,442.85 | 411,397,111.21 | 4,897,039,093.59 | 9,809,651,243.75 |
Plus: Changes in accountingpolicies
| Plus: Changes in accounting policies |
Prior period error correction
| Prior period error correction |
Others
| Others |
II. Beginning balance in currentyear
| II. Beginning balance in current year | 594,387,367.00 | 4,380,380,114.80 | 473,552,442.85 | 411,397,111.21 | 4,897,039,093.59 | 9,809,651,243.75 |
III. Increase/decrease in the currentperiod (less to be filled out with theminus sign “-)
| III. Increase/decrease in the current period (less to be filled out with the minus sign “-) | -6,094,659.00 | -442,215,864.75 | -256,237,646.96 | -269,864,157.17 | -461,937,033.96 |
(I) Total comprehensive income
| (I) Total comprehensive income | 21,300,746.83 | 21,300,746.83 |
(II) Owner’s invested and
decreased capital
| (II) Owner’s invested and decreased capital | 2,908,958.42 | 2,908,958.42 |
1. Common stock invested by the
owner
| 1. Common stock invested by the owner |
2. Capital invested by other equity
instrument holders
| 2. Capital invested by other equity instrument holders |
3. Amount of share-based payment
included in the owner’s equity
| 3. Amount of share-based payment included in the owner’s equity | 2,908,958.42 | 2,908,958.42 |
4. Others
| 4. Others |
(III) Profit distribution
| (III) Profit distribution | -291,164,904.00 | -291,164,904.00 |
1. Withdrawal of surplus reserves
| 1. Withdrawal of surplus reserves |
2. Distribution of owners (or
shareholders)
| 2. Distribution of owners (or shareholders) | -291,164,904.00 | -291,164,904.00 |
3. Others
| 3. Others |
(IV) Internal transfer of owner’sequity
| (IV) Internal transfer of owner’s equity | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 |
1. Capital surplus transfer to paid-in
capital (or capital stock)
| 1. Capital surplus transfer to paid-in capital (or capital stock) |
2. Earned surplus transfer to paid-in
capital (or capital stock)
| 2. Earned surplus transfer to paid-in capital (or capital stock) |
3. Earned surplus covering the
deficit
| 3. Earned surplus covering the deficit |
4. Carryforward retained earnings
in variation of defined benefit plan
| 4. Carryforward retained earnings in variation of defined benefit plan |
5. Carryforward retained earnings
of other comprehensive income
| 5. Carryforward retained earnings of other comprehensive income |
6. Others
| 6. Others | -6,094,659.00 | -445,124,823.17 | -451,219,482.17 |
(V) Special Reserve
| (V) Special Reserve |
1. Draw in this current
| 1. Draw in this current |
2. Use in this current
| 2. Use in this current |
(VI) Others
| (VI) Others | 194,981,835.21 | -194,981,835.21 |
IV. Balance at the end of currentperiod
| IV. Balance at the end of current period | 588,292,708.00 | 3,938,164,250.05 | 217,314,795.89 | 411,397,111.21 | 4,627,174,936.42 | 9,347,714,209.79 |
| Legal representative: Li Jianquan | Head of accounting work: Fang Xiuyuan | Head of accounting institution: Zhao Yan |
III. Basic Information of the Company
1. Company Profile
Winner Medical Co., Ltd. (hereinafter referred to as the “Company” or “our Company”), formerly known as Winner Industry (Shenzhen) Co.,Ltd. (hereinafter referred to as “Winner Industry”), is a wholly foreign-owned enterprise established on August 24, 2000 with the approval ofShenzhen Municipal Administration for Industry and Commerce. The original business license number of the Company is: Q.D.Y.S.Z.ZiNo.307199. The original registered capital is HKD 30 million, and the total investment is HKD 60 million. The Company is wholly owned byWinner International Trading Corporation. The registered capital was invested in three installments. On April 2, 2001, the registered capital ofHKD 18,023,154.30 was invested in cash and cash equivalents, which was verified by the capital verification report (Z.T.Z.T. No.Y2001-1133)of Zhuhai Zhongtuo Zhengtai Accounting Firm. The business scope of the original company is: the production and operation of sanitarymaterials, dressings and their products, medical clothing, textiles, non-woven fabric products and moulded packaging (excluding the productssubject to national export license management).
On May 18, 2001, the board of directors of the Company decided to increase the registered capital from HKD 30.00 million to HKD 60.00million, and the total investment from HKD 60.00 million to HKD 120.00 million, which was paid in three installments since the date ofregistration of the Company. On June 5, 2001, the Company obtained the changed business license of the enterprise legal person issued byShenzhen Municipal Bureau for Industry and Commerce and amended the Articles of Association accordingly.
As of December 21, 2001, it has received the second installment of the registered capital paid by Winner International Trading Corporation.Winner International Trading Corporation contributed HKD 31,445,194.91 in cash and cash equivalents, and this investment was verified byShenzhen Zhongpeng Certified Public Accountants, Ltd. (S.P.K.Y. Zi [2002] No.037 capital verification report). As of February 21, 2002, ithas received the third installment of the registered capital totaling HKD 6,005,722.20 paid by Winner International Trading Corporation,including HKD 3,665,722.20 in currency and HKD 2,340,000.00 in kind. This investment was verified by Shenzhen Lishang Certified PublicAccountants Co., Ltd . (S.L.S.Y. Zi [2002] No.039 capital verification report)
On October 8, 2002, the board of directors of the Company decided to increase the Company’s registered capital from HKD 60.00 million toHKD 70.00 million, and the total investment from HKD 120.00 million to HKD 134.00 million. On December 10, 2002, the Company obtainedthe changed business license of the enterprise legal person issued by Shenzhen Municipal Bureau for Industry and Commerce and amendedthe Articles of Association accordingly. As of May 27, 2003, it has received the fourth installment of the registered capital totaling HKD14,525,928.59 paid by (Hong Kong) Winner International Trading Corporation. This capital increase was verified by Shenzhen YuehuaCertified Public Accountants Co., Ltd. (S.Y.H.Y. Zi [2003] No.339 capital verification report).
On May 25, 2003, with the approval of the board of directors of the Company, the shareholder Winner International Trading Corporationsigned the Equity Transfer Agreement with Winner Group Limited, under which Winner International Trading Corporation transferred 100%of its equity to Winner Group Limited. On July 28, 2003, the Company obtained the changed business license of the enterprise legal personissued by Shenzhen Municipal Bureau for Industry and Commerce and amended the Articles of Association accordingly.
On June 8, 2006, the board of directors of the Company decided to increase the Company’s registered capital from HKD 70.00 million to HKD
126.00 million, and the total investment from HKD 134.00 million to HKD 270.00 million. The newly increased registered capital of HKD
56.00 million was transferred from the undistributed profits after tax of the Company, and such newly increased registered capital was investedwithin half a year after registration of the change. On June 30, 2006, the Company obtained the changed business license of the enterprise legalperson issued by Shenzhen Municipal Bureau for Industry and Commerce and amended the Articles of Association accordingly.
As of August 30, 2006, the Company transferred undistributed profits HKD 49,423,804.00 to paid-in capital, and the paid-in capital after thechange was HKD 119,423,804.00. This capital increase was verified by the Shenzhen Branch of Beijing Zhonglian Certified PublicAccountants Co., Ltd. (Z.L.S.S.Y. Zi [2007] No.043 capital verification report).
On December 2, 2006, the board of directors of the Company decided to change the original investment period of the shareholders from June30, 2006 to December 31, 2006 into June 30, 2006 to June 30, 2007. On December 6, 2006, the Company was approved by GeneralAdministration for Industry and Commerce of Shenzhen to change its corporate type from a wholly foreign-owned enterprise into a limitedliability company (wholly owned by foreign legal person) and change its business term.
As of March 15, 2007, the Company has converted undistributed profits into capital of HKD6,576,196.00, and the paid-in amount of thechanged accumulated registered capital is HKD126,000,000. This capital increase has been verified by Shenzhen Hengping Accounting Firm with the capital verification report [2007]No.0004. On August 13, 2007,the Company obtained the changed business license of enterprise legal person issued by Shenzhen Administration for Industry and Commerceand revised the articles of association accordingly. The registration number was changed from Q.D.Y.S.Z. ZiNo. 307199 to 440306503230896.
On June 8, 2009, the board of directors of the Company decided to add sterilization technology services to the business scope. On June 30,2009, the Company obtained the changed business license of the enterprise legal person issued by Shenzhen Municipal Bureau for Industryand Commerce and amended the Articles of Association accordingly.
On April 1, 2010, the board of directors of the Company decided to increase the Company’s registered capital from HKD 126.00 million toHKD 192.00 million, and the total investment from HKD 270.00 million to HKD 380.00 million. The increased amount of the registeredcapital was contributed by the original shareholders in cash in foreign currency.
As of June 18, 2010, it has received the registered capital totaling USD 8,473,500.00 (equivalent to HKD 66,000,653.75) paid by WinnerGroup Limited. This capital increase was verified by Shenzhen Hengping Certified Public Accountants LLP (S.H.P.S. (W.) Y. Zi [2010] No.13capital verification report). On July 2, 2010, the Company obtained the changed business license of the enterprise legal person issued byShenzhen Administration for Market Regulation (since September 9, 2009, Shenzhen Municipal Bureau for Industry and Commerce has beenintegrated into Shenzhen Administration for Market Regulation) and amended the Articles of Association accordingly.
On April 27, 2011, with the approval of General Administration for Industry and Commerce of Shenzhen, the Company changed its residenceaddress from No. 1 Wenjian Avenue, Bulong Road, Longhua Street, Baoan District, Shenzhen to Winner Industrial Park beside Bulong Road,Longhua Street, Bao’an District, Shenzhen.
On February 20, 2013, the board of directors of the Company decided and agreed to increase the Company’s registered capital by HKD4,271,300.The registered capital after the change was HKD 196.2713 million, and the total investment was still HKD 380.00 million.
The shareholder, Winner Group Limited made capital contribution with its equity in the six enterprises. The equity contribution is as follows:
| Name of invested entity | Proportion (%) | Book value of equity contribution net assets (RMB 10,000) | Amount of equity contribution (RMB 10,000) | Amount included in capital surplus (RMB 10,000) | Amount of equity contribution (convert to HKD 10,000) |
| (a) | (b) | (c)=(a)-(b) | (D) = (b)*conversion exchange rate |
Winner Medical (Chongyang) Co.,Ltd. (formerly known as “ChongyangWinner Medical Textile Co., Ltd.”)
| Winner Medical (Chongyang) Co., Ltd. (formerly known as “Chongyang Winner Medical Textile Co., Ltd.”) | 100.00 | 3,232.93 | 32.33 | 3,200.60 | 39.94 |
Winner Medical (Jiayu) Co., Ltd.(formerly known as “Jiayu WinnerMedical Textile Co., Ltd.”)
| Winner Medical (Jiayu) Co., Ltd. (formerly known as “Jiayu Winner Medical Textile Co., Ltd.”) | 100.00 | 3,520.95 | 35.21 | 3,485.74 | 43.50 |
Winner Medical (Jingmen) Co., Ltd.(formerly known as “Jingmen WinnerMedical Textile Co., Ltd.”)
| Winner Medical (Jingmen) Co., Ltd. (formerly known as “Jingmen Winner Medical Textile Co., Ltd.”) | 100.00 | 2,527.24 | 25.27 | 2,501.97 | 31.22 |
| Name of invested entity | Proportion (%) | Book value of equity contribution net assets (RMB 10,000) | Amount of equity contribution (RMB 10,000) | Amount included in capital surplus (RMB 10,000) | Amount of equity contribution (convert to HKD 10,000) |
| (a) | (b) | (c)=(a)-(b) | (D) = (b)*conversion exchange rate |
Yichang Winner Medical Textile Co.,Ltd.
| Yichang Winner Medical Textile Co., Ltd. | 100.00 | 1,800.69 | 18.01 | 1,782.68 | 22.25 |
Winner Medical (Huanggang) Co.,Ltd.
| Winner Medical (Huanggang) Co., Ltd. | 75.00 | 19,729.30 | 197.29 | 19,532.01 | 243.76 |
Winner Medical (Tianmen) Co., Ltd.(formerly known as “Hubei WinnerTextile Co., Ltd.”)
| Winner Medical (Tianmen) Co., Ltd. (formerly known as “Hubei Winner Textile Co., Ltd.”) | 100.00 | 3,760.89 | 37.61 | 3,723.28 | 46.46 |
Total
| Total | 34,572.00 | 345.72 | 34,226.28 | 427.13 |
After the capital increase, the original shareholders still have 100% of the Company’s equity, and the above six companies become theCompany’s subsidiaries. On July 25, 2013, the Company obtained the changed business license of the enterprise legal person issued byShenzhen Municipal Bureau for Industry and Commerce and amended the Articles of Association accordingly. This capital increase wasverified by the Shenzhen Branch of Zhonglian Certified Public Accountants Co., Ltd. (Z.L.S.S.Y. Zi [2013] No.102 capital verification report).
On September 2, 2013, the board of directors of the Company decided to increase the Company’s registered capital by HKD 18,068,200. Theregistered capital after the change was HKD 214,339,500, and the total investment was still HKD 380,000,000. The new investment wassubscribed by Shenzhen Kangsheng Investment Partnership (limited partnership) (hereinafter referred to as the “Kangsheng Investment”),Shenzhen Kangxin Investment Partnership (limited partnership) (hereinafter referred to as the “Kangxin Investment”), Shenzhen KanglongInvestment Partnership (limited partnership) (hereinafter referred to as the “Kanglong Investment”) with HKD 10,322,400, HKD 4,414,500and HKD 3,331,300 respectively. After the completion of the capital increase, the Company’s ownership structure was changed as follows:
| Investor | Capital contribution amount (HKD ten thousand) | Proportion (%) |
Winner Group Limited
| Winner Group Limited | 19,627.13 | 91.5703 |
Kangsheng Investment
| Kangsheng Investment | 1,032.24 | 4.8159 |
Kangxin Investment
| Kangxin Investment | 441.45 | 2.0596 |
Kanglong Investment
| Kanglong Investment | 333.13 | 1.5542 |
Total
| Total | 21,433.95 | 100.0000 |
On October 17, 2013, the Company obtained the changed business license of the enterprise legal person issued by Shenzhen Administrationfor Market Regulation and amended the Articles of Association accordingly. This capital increase was verified by Shenzhen Hengping CertifiedPublic Accountants LLP (S.H.P.S.Y. Zi [2013] No.035 capital verification report).
On October 26, 2013, the board of directors of the Company decided to change its residence from Winner Industrial Park beside Bulong Road,Longhua Street, Baoan District, Shenzhen to Winner Industrial Park, No. 660 Bulong Road, Longhua New District, Shenzhen. On November4, 2013, the Company completed the industrial and commercial registration of changes, obtained the changed business license of the enterpriselegal person issued by Shenzhen Municipal Bureau for Industry and Commerce and amended the Articles of Association accordingly.
On July 1, 2014, the board of directors of the Company decided and agreed to increase the Company’s registered capital by HKD 3,646,600.The registered capital after the change was HKD 217,986,100, and the total investment was still HKD 380.00 million. The capital increase wasmade by the original shareholder, Kangsheng Investment, which subscribed HKD 3,646,600 with 13.585 million yuan, and the increasedregistered capital was paid in two installments. After the completion of the capital increase, the Company’s ownership structure was changedas follows:
| Investor | Capital contribution amount (HKD ten thousand) | Proportion (%) |
Winner Group Limited
| Winner Group Limited | 19,627.13 | 90.0385 |
Kangsheng Investment
| Kangsheng Investment | 1,396.90 | 6.4082 |
Kangxin Investment
| Kangxin Investment | 441.45 | 2.0251 |
Kanglong Investment
| Kanglong Investment | 333.13 | 1.5282 |
Total
| Total | 21,798.61 | 100.0000 |
On July 24, 2014, the Company obtained the changed business license of the enterprise legal person issued by Shenzhen Administration forMarket Regulation and amended the Articles of Association accordingly. This capital increase was verified by Shenzhen Hengping CertifiedPublic Accountants LLP (S.H.P.S.Y. Zi [2014] No.030 and S.H.P.S.Y. Zi [2015] No.003 capital verification reports).
On July 28, 2014, the board of directors of the Company decided to agree that the shareholder of the Company, Wenjian Group Limited, wouldtransfer its 2.9503% equity of the Company to Kangxin Investment, Kanglong Investment, and the newly introduced shareholder, ShenzhenKangli Investment Partnership (limited partnership) (hereinafter referred to as “Kangli Investment”). After the completion of the equity transfer,the Company’s ownership structure was changed as follows:
| Investor | Capital contribution amount (HKD ten thousand) | Proportion (%) |
Winner Group Limited
| Winner Group Limited | 18,984.01 | 87.0882 |
Kangsheng Investment
| Kangsheng Investment | 1,396.90 | 6.4082 |
Kangxin Investment
| Kangxin Investment | 740.83 | 3.3985 |
Kanglong Investment
| Kanglong Investment | 447.37 | 2.0523 |
Kangli Investment
| Kangli Investment | 229.50 | 1.0528 |
Total
| Total | 21,798.61 | 100.0000 |
On August 29, 2014, the Company obtained the changed business license of the enterprise legal person issued by Shenzhen Administration forMarket Regulation and amended the Articles of Association accordingly.
On September 28, 2014, the board of directors decided to increase the registered capital of the company by HKD22,550,300.The registered capital after the change was HKD 240,536,400, and the total investment was still HKD 380.00 million. The new registeredcapital was subscribed by Beijing Sequoia Xinyuan Equity Investment Center (Limited Partnership) (hereinafter referred to as “SequoiaXinyuan”) with RMB 300.00 million. After the completion of the capital increase, the Company’s ownership structure was changed as follows:
| Investor | Capital contribution amount (HKD ten thousand) | Proportion (%) |
Winner Group Limited
| Winner Group Limited | 18,984.01 | 78.9236 |
Kangsheng Investment
| Kangsheng Investment | 1,396.90 | 5.8074 |
Kangxin Investment
| Kangxin Investment | 740.83 | 3.0800 |
Kanglong Investment
| Kanglong Investment | 447.37 | 1.8599 |
Kangli Investment
| Kangli Investment | 229.50 | 0.9541 |
Sequoia Xinyuan
| Sequoia Xinyuan | 2,255.03 | 9.3750 |
Total
| Total | 24,053.64 | 100.0000 |
As of October 31, 2014, it has received RMB 300.00 million from Sequoia Xinyuan in cash and cash equivalents. On November 06, 2014, theCompany obtained the changed business license of the enterprise legal person issued by Shenzhen Administration for Market Regulation andamended the Articles of Association accordingly. This capital increase was verified by the Shenzhen Branch of Zhonglian Certified PublicAccountants Co., Ltd. (Z.L.S.S.Y. Zi [2014] No.087 capital verification report).
On April 30, 2015, through the resolution of the board of directors of the Company, with February 28, 2015 as the base date, Winner Industrywas wholly changed into a limited liability Company, with a registered capital of RMB 368 million. In accordance with the provisions of theSponsorship Agreement and Articles of Association, the shareholders converted their audited net assets as of February 28, 2015 of RMB1,058,194,956.32 into 368 million shares at a ratio of 1:0.3478, par value of each share was RMB 1, and the total share capital was RMB 368million and held separately by the original shareholders in accordance with their original proportions; the remaining RMB 690,194,956.32 wasincluded in the capital surplus (due to the change of calculation policy of Company’s receivables bad debt provision during the reporting period,the audited net assets of the Company as of the base date of share reform were adjusted to RMB 1,050,812,354.45, and the corresponding shareconversion ratio was adjusted to 1: 0.3502). On June 4, 2015, with the approval of Economy, Trade and Information Commission of ShenzhenMunicipality, Winner Industry was wholly changed into a limited liability company, renamed as “Winner Medical Co., Ltd.”, and obtained thebusiness license of enterprise legal person with the registration number of 440306503230896.
On May 28, 2018, after being voted through and approved by the extraordinary general meeting of shareholders, the Company agreed toincrease the registered capital by RMB 8,492,308, with the registered capital after the change of RMB 376,492,308. The new registered capitalwas subscribed by Shenzhen Capital Group Co., Ltd. (hereinafter referred to as “SCGC”) with RMB 300.00 million. After the completion ofthe capital increase, the Company’s ownership structure was changed as follows:
| Investor | Amount of contribution (10,000 yuan) | Proportion (%) |
Winner Group Limited
| Winner Group Limited | 29,043.8848 | 77.1434 |
Kangsheng Investment
| Kangsheng Investment | 2,137.1232 | 5.6764 |
Kangxin Investment
| Kangxin Investment | 1,133.4400 | 3.0105 |
Kanglong Investment
| Kanglong Investment | 684.4432 | 1.8179 |
Kangli Investment
| Kangli Investment | 351.1088 | 0.9326 |
Sequoia Xinyuan
| Sequoia Xinyuan | 3,450.0000 | 9.1635 |
SCGC
| SCGC | 849.2308 | 2.2556 |
Total
| Total | 37,649.2308 | 100.0000 |
As of June 13, 2018, it has received RMB 300.00 million from SCGC in cash and cash equivalents. On June 15, 2018, Shenzhen Administrationfor Market Regulation issued the Notice of Change (Filing) (No.: 21801665051) on this change and approved the capital increase. TheCompany amended the Articles of Association in respect of the above matters. The Company amended the Articles of Association in respectof the above matters. This capital increase was verified by BDO China Shu Lun Pan Certified Public Accountants LLP (X.K.S.B.Zi [2018]No.ZI10525 capital verification report).
On February 28, 2018, the Company obtained the renewed business license of the enterprise legal person issued by Shenzhen Administrationfor Market Regulation with the unified social credit code 91440300723009295R.
On August, 18, 2020, after the reply of China Securities Regulatory Commission on Approval of the Registration of the Initial Public Offeringof Winner Medical Co., Ltd. (Z.J.X.K. [2020] No.1822), the Company issued RMB 50 million of common shares to the public, which waslisted on the Shenzhen Stock Exchange on September 17, 2020. Upon completion of the issuance, the registered capital of the Company wasRMB 426,492,308.
At the 2022 Annual General Meeting of Shareholders, the equity distribution plan was reviewed and endorsed. Based on the 419,737,649shares post the deduction of repurchased shares, the plan includes a cash dividend of 19.00 yuan (tax included) for every 10 shares, alongsidea conversion of every 10 shares into 4 shares of capital stock. Subsequently, the Company’s share capital was adjusted to 594,387,367.00 yuan.
The first extraordinary shareholders’ meeting of the Company in 2024 deliberated and passed the Proposal on the Repurchase and Cancellationof Remaining Shares in the Special Securities Account and the Proposal on Amending the Articles of Association and Handling the Registrationof Industrial and Commercial Changes, and changed the original purpose of 6,094,659 shares remaining in the repurchase account excludingthe first-phase employee stock ownership plan (including the reserved part) from “used for the Company’s employee stock ownership plan orequity incentive” to “used for cancellation to reduce the Company’s registered capital”. After the cancellation of the repurchased shares, theCompany’s share capital has been reduced from RMB 594,387,367.00 yuan to RMB 588,292,708.00.
The Company belongs to textile industry.
Business term: sustainable operation.
Business scope: production and operation of class II, III 6864 medical hygiene materials, medical biological materials, dressings and products,medical clothing, protective articles, textiles, nonwoven products and molded packaging (the above products do not include the goods subjectto national export license administration) and related products, disposable consumables and molded packaging; engaging in wholesale, importand export, retail (including online sales) and other related ancillary businesses of all Class I medical devices, all Class II medical devices(excluding in vitro diagnostic reagents), Class III medical devices: medical hygiene materials and dressings, medical suture materials andadhesives, medical polymer materials and products (except disposable transfusion apparatus (needle)), general diagnostic instruments, medicalcold treatment, low temperature, refrigerating equipment and tools, cotton household articles, cotton clothing, cotton costume, pure cottonspunlace non-woven fabric and its manufactured products, cotton, disinfection products, daily necessities, cosmetics, protective equipment andinstruments and meters (if it does not involve goods subject to state trading, or involves goods subject to quotas, license management and otherspecial provisions, it shall apply in accordance with relevant regulations of the state); provide the technical consulting, technical services andafter-sales services of above-mentioned products; sterilization technical services (if it needs to obtain relevant qualifications to operate, it shallapply in accordance with relevant regulations); enterprise management consulting, business information consulting, economic informationconsulting, warehouse services (excluding hazardous chemicals, precursor chemicals, refined oil and other dangerous goods), own propertyleasing (it can be operated only with the legal real estate ownership certificate under the Company’s name). The above business scope doesnot include the items subject to special administrative measures for access stipulated by the state, and those involving the record and licensingqualifications need to obtain the relevant certificates before operation.
Domicile of the Company: F42, Building 2, Huilong Business Center, Shenzhen North Railway Station Area, Minzhi Subdistrict, LonghuaDistrict, Shenzhen; Winner Industrial Park, No.660 Bulong Road, Longhua New District, Shenzhen.
The financial statements were approved by the Board of Directors of the Company on August 26, 2024.
2. Scope of Consolidated Financial Statements
As of June 30, 2024, the subsidiaries in the consolidated financial statements of the Company are as follows:
Subsidiary nameWinner Medical (Jingmen) Co., Ltd. (hereinafter referred to as “Winner Medical (Jingmen)”)
Winner Medical (Jingmen) Co., Ltd. (hereinafter referred to as “Winner Medical (Jingmen)”)Yichang Winner Medical Textile Co., Ltd. (hereinafter referred to as “Winner Medical (Yichang)”)
Yichang Winner Medical Textile Co., Ltd. (hereinafter referred to as “Winner Medical (Yichang)”)Winner Medical (Tianmen) Co., Ltd. (hereinafter referred to as “Winner Medical (Tianmen)”)
Winner Medical (Tianmen) Co., Ltd. (hereinafter referred to as “Winner Medical (Tianmen)”)Winner Medical (Chongyang) Co., Ltd. (hereinafter referred to as “Winner Medical (Chongyang)”)
Winner Medical (Chongyang) Co., Ltd. (hereinafter referred to as “Winner Medical (Chongyang)”)Winner Medical (Jiayu) Co., Ltd. (hereinafter referred to as “Winner Medical (Jiayu)”)
Winner Medical (Jiayu) Co., Ltd. (hereinafter referred to as “Winner Medical (Jiayu)”)
Subsidiary nameWinner Medical (Hong Kong) Ltd. (hereinafter referred to as “Hong Kong Winner”)
Winner Medical (Hong Kong) Ltd. (hereinafter referred to as “Hong Kong Winner”)Winner Medical (Huanggang) Co., Ltd. (hereinafter referred to as “Winner Medical (Huanggang)”)
Winner Medical (Huanggang) Co., Ltd. (hereinafter referred to as “Winner Medical (Huanggang)”)Shenzhen Purcotton Technology Co., Ltd. (hereinafter referred to as “Shenzhen Purcotton”)
Shenzhen Purcotton Technology Co., Ltd. (hereinafter referred to as “Shenzhen Purcotton”)Guangzhou Purcotton Medical Technology Co., Ltd. (hereinafter referred to as “Guangzhou Purcotton”)
Guangzhou Purcotton Medical Technology Co., Ltd. (hereinafter referred to as “Guangzhou Purcotton”)Beijing Purcotton Technology Co., Ltd. (hereinafter referred to as “Beijing Purcotton”)
Beijing Purcotton Technology Co., Ltd. (hereinafter referred to as “Beijing Purcotton”)Shanghai Purcotton Technology Co., Ltd. (hereinafter referred to as “Shanghai Purcotton”)
Shanghai Purcotton Technology Co., Ltd. (hereinafter referred to as “Shanghai Purcotton”)Shenzhen Qianhai Purcotton E-Commerce Co., Ltd. (hereinafter referred to as “Qianhai Purcotton”)
Shenzhen Qianhai Purcotton E-Commerce Co., Ltd. (hereinafter referred to as “Qianhai Purcotton”)Winner Medical Malaysia Sdn. Bhd. (hereinafter referred to as “Winner Medical Malaysia”)
Winner Medical Malaysia Sdn. Bhd. (hereinafter referred to as “Winner Medical Malaysia”)Winner Medical (Heyuan) Co., Ltd. (hereinafter referred to as “Winner Medical (Heyuan)”)
Winner Medical (Heyuan) Co., Ltd. (hereinafter referred to as “Winner Medical (Heyuan)”)Winner Medical (Wuhan) Co., Ltd. (hereinafter referred to as “Winner Medical (Wuhan)”) (former name: Hubei Winner Medical Co., Ltd.)
Winner Medical (Wuhan) Co., Ltd. (hereinafter referred to as “Winner Medical (Wuhan)”) (former name: Hubei Winner Medical Co., Ltd.)Shenzhen PureH2B Technology Co., Ltd. (hereinafter referred to as “PureH2B”)
Shenzhen PureH2B Technology Co., Ltd. (hereinafter referred to as “PureH2B”)Shenzhen Purunderwear Sci-Tech Innovation Co., Ltd. (hereinafter referred to as “Purunderwear”)
Shenzhen Purunderwear Sci-Tech Innovation Co., Ltd. (hereinafter referred to as “Purunderwear”)Huanggang Purcotton Ltd. (hereinafter referred to as “Huanggang Purcotton”)
Huanggang Purcotton Ltd. (hereinafter referred to as “Huanggang Purcotton”)Winner Medical Technology (Foshan) Co., Ltd. (hereinafter referred to as “Winner Medical (Foshan)”)
Winner Medical Technology (Foshan) Co., Ltd. (hereinafter referred to as “Winner Medical (Foshan)”)Zhejiang Longterm Medical Technology Co., Ltd. (hereinafter referred to as “Zhejiang Longterm”)
Zhejiang Longterm Medical Technology Co., Ltd. (hereinafter referred to as “Zhejiang Longterm”)Xi’an Longtemu Medical Technology Co., Ltd. (hereinafter referred to as “Xi’an Longtemu”)
Xi’an Longtemu Medical Technology Co., Ltd. (hereinafter referred to as “Xi’an Longtemu”)Hangzhou Shengyi Technology Co., Ltd. (hereinafter referred to as “Hangzhou Shengyi”)
Hangzhou Shengyi Technology Co., Ltd. (hereinafter referred to as “Hangzhou Shengyi”)Deqing Longterm Medical Silica Gel Products Co., Ltd. (hereinafter referred to as “Deqing Longterm”)
Deqing Longterm Medical Silica Gel Products Co., Ltd. (hereinafter referred to as “Deqing Longterm”)Longterm Medical US LLC (hereinafter referred to as “American Longterm”)
Longterm Medical US LLC (hereinafter referred to as “American Longterm”)LONGTERM MEDICAL,S.DE.R.L.DE C.V (hereinafter referred to as “Mexico Longterm”)
LONGTERM MEDICAL,S.DE.R.L.DE C.V (hereinafter referred to as “Mexico Longterm”)Winner Guilin Latex Co., Ltd. (hereinafter referred to as “Guilin Latex”)
Winner Guilin Latex Co., Ltd. (hereinafter referred to as “Guilin Latex”)Winner Medical (Hunan) Co., Ltd. (hereinafter referred to as “Winner Medical (Hunan)”)
Winner Medical (Hunan) Co., Ltd. (hereinafter referred to as “Winner Medical (Hunan)”)Hunan Ruian Medical Device Technology Co., Ltd. (hereinafter referred to as “Ruian Medical Device”)
Hunan Ruian Medical Device Technology Co., Ltd. (hereinafter referred to as “Ruian Medical Device”)Shenzhen Junjian Medical Device Co., Ltd. (hereinafter referred to as “Junjian Medical”)
Shenzhen Junjian Medical Device Co., Ltd. (hereinafter referred to as “Junjian Medical”)
Subsidiary nameShanghai Hongsong Medical Device Co., Ltd. (hereinafter referred to as “Shanghai Hongsong”)
Shanghai Hongsong Medical Device Co., Ltd. (hereinafter referred to as “Shanghai Hongsong”)Winner (Jinzhou) Latex Products Co., Ltd. (hereinafter referred to as “Jinzhou Latex”)
Winner (Jinzhou) Latex Products Co., Ltd. (hereinafter referred to as “Jinzhou Latex”)Wuhan Purcotton Technology Co., Ltd. (hereinafter referred to as “Wuhan Purcotton”)
Wuhan Purcotton Technology Co., Ltd. (hereinafter referred to as “Wuhan Purcotton”)Hong Kong Purcotton Technology Co., Ltd. (hereinafter referred to as “Hong Kong Purcotton”)
Hong Kong Purcotton Technology Co., Ltd. (hereinafter referred to as “Hong Kong Purcotton”)Nature Health Development (Hong Kong) Co., Ltd. (hereinafter referred to as “Pan-China (H.K.)”)
Nature Health Development (Hong Kong) Co., Ltd. (hereinafter referred to as “Pan-China (H.K.)”)Winner Medical (Wuhan) Digital Technology Co., Ltd. (hereinafter referred to as “Wuhan Digital Technology”)
Winner Medical (Wuhan) Digital Technology Co., Ltd. (hereinafter referred to as “Wuhan Digital Technology”)Zhejiang Honglan Technology Co., Ltd. 1* (hereinafter referred to as “Zhejiang Honglan”)
Zhejiang Honglan Technology Co., Ltd. 1* (hereinafter referred to as “Zhejiang Honglan”)Winner Medical Biomedical Technology (Wuhan) Co., Ltd. 2* (hereinafter referred to as “Winner Medical”)
Winner Medical Biomedical Technology (Wuhan) Co., Ltd. 2* (hereinafter referred to as “Winner Medical”)Purecotton Agricultural Technology (Wuhan) Co., Ltd. 3* (hereinafter referred to as “Purecotton Agricultural Technology”)
Purecotton Agricultural Technology (Wuhan) Co., Ltd. 3* (hereinafter referred to as “Purecotton Agricultural Technology”)
1* Zhejiang Honglan is added for consolidation in 2024;
2* Winner Medical is established in 2024;
3* Purecotton Agricultural Technology is established in 2024.
The scope of the consolidated financial statements for this reporting period and its changes are detailed in the notes “IX. Consolidation scopechanges” and “X. Interests in other entities”.
IV. Preparation Basis of Financial Statements
1. Preparation Basis
This financial statement is prepared in accordance with the Accounting Standards for Business Enterprises -- Basic Standard issued by theMinistry of Finance, various special accounting standards, guideline for application of accounting standards for business enterprises, ASBEinterpretations and other relevant regulations (hereinafter collectively referred to as “Accounting Standards for Business Enterprises”) andNo.15 of Compilation Rules for Information Disclosure by Companies Offering Securities to the Public - General Provisions of FinancialReports issued by China Securities Regulatory Commission.
2. Continual Operation
There are no events affecting the Company’s going-concern ability and it is expected that the Company will be able to operate as a goingconcern within the next 12 months. The Company’s financial statements are prepared on the basis of the assumption of going concern.
V. Significant Accounting Policies and Accounting Estimates
Specific accounting policy and accounting estimate:
The following significant accounting policy and accounting estimate of the Company are formulated in accordance with the AccountingStandards for Business Enterprises. The business not mentioned is implemented in accordance with the relevant accounting policies in theAccounting Standards for Business Enterprises.
1. Statement of Compliance with Accounting Standards for Business Enterprises
These financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry ofFinance, and truly and completely reflect the consolidated and parent company financial position of the Company on June 30, 2024 and thebusiness performance and cash flows of the consolidated and parent company in HY 2024.
2. Accounting Period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
3. Operating Cycle
The operating cycle of the Company is 12 months.
4. Reporting Currency
The reporting currency of the Company is RMB.
5. Methodology for Determining Materiality Criteria and Selection Rationale
√Applicable □ Not applicable
| Item | Materiality standard |
Important individual accounts receivable with allowancesfor doubtful debts
| Important individual accounts receivable with allowances for doubtful debts | 5 million yuan |
Provision for bad debts on significant receivables is eitherrecovered or reversed
| Provision for bad debts on significant receivables is either recovered or reversed | 5 million yuan |
Write-off of important accounts receivable
| Write-off of important accounts receivable | 5 million yuan |
Important prepaid accounts aged over one year
| Important prepaid accounts aged over one year | 5 million yuan |
Important accounts payable aged over one year
| Important accounts payable aged over one year | 5 million yuan |
Important construction in progress
| Important construction in progress | The amount incurred or the balance at the end of the period surpasses 30 million yuan |
Important cooperative enterprises or joint ventures
| Important cooperative enterprises or joint ventures | More than 0.5% of total assets |
6. Accounting Treatment of Business Combination Involving Enterprises under and not under Common Control
Business combination involving enterprises under the same control: the assets and liabilities acquired by the merging party in the businesscombination (including the goodwill formed by the final controlling party by purchasing the merged party) shall be measured on the basis ofthe book value of the assets and liabilities of the merged party in the consolidated financial statements of the final controlling party on themerger date. The difference between the book value of the net assets obtained and the consideration paid for the combination (or total par valueof issued shares) is adjusted against capital reserve (capital stock premium); if the capital reserve (capital stock premium) is not sufficient toabsorb the difference, the retained earnings shall be adjusted.
Business combination not involving enterprises under common control: the cost of combination is the fair value of the assets paid, liabilitiesincurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisition of the control right of the acquiree. If thecost of combination is greater than the share of the fair value of the acquiree’s identifiable net assets acquired in the combination, the differenceis recognized as goodwill; if the cost of combination is less than the share of the fair value of the acquiree’s identifiable net assets acquired inthe combination, the difference is included in the profit and loss of the current period. The acquiree’s identifiable assets, liabilities andcontingent liabilities obtained by the acquirer in the combination meeting the recognition conditions are measured at fair value on the acquiringdate.
The directly related expenses incurred for the business combination are included in the profit and loss of the current period; the transactioncosts associated with the issue of equity or debt securities for the business combination are included in the initially recognized amounts of theequity or debt securities.
7. The Criterion of Control and Methods of Preparing Consolidated Financial Statements
1. The criterion of control
The consolidation scope of the consolidated financial statements is determined on a control basis and includes the Company and all subsidiaries.Control means that the Company has the power over the invested entity, enjoys variable returns by participating in the relevant activities of theinvested entity, and has the ability to use the power to influence the amount of returns.
2. Consolidation procedures
The Company regards the whole enterprise group as an accounting entity and prepares consolidated financial statements in accordance withunified accounting policies to reflect the overall financial position, operating results and cash flow of the enterprise group. The impact ofinternal transactions between the Company and its subsidiaries and between the subsidiaries are offset. If the internal transaction indicates thatimpairment loss has occurred to relevant assets, such loss shall be recognized in full. If the accounting policies and the accounting periodsadopted by the subsidiaries are inconsistent with those of the Company, necessary adjustments shall be made in accordance with the accountingpolicies and the accounting periods of the Company when preparing the consolidated financial statements.
The minority shareholders’ share of the subsidiary’s owners’ equity, current net profit and loss and current comprehensive income shall beseparately listed under the owners’ equity item in the consolidated balance sheet, under the net profit item and under the total comprehensiveincome item in the consolidated income statement. If the current loss shared by the minority shareholders of the subsidiary exceeds their sharein the owner’s equity of the subsidiary at the beginning of the period, the minority equity shall be offset by the balance.
(1) Increase of subsidiaries or business
During the reporting period, if subsidiaries or business are increased due to business combination involving enterprises under the same control,the operating results and cash flow from the beginning of the current period to the end are incorporated into the consolidated financial statements,and the opening balance in the consolidated financial statements and the related items in comparative statements are adjusted, which shall beregarded that the reporting subject after combination has been existed since the initial control point of the ultimate controlling party.
If the invested party under the same control is controlled by the additional investment and other reasons, the equity investment held beforeobtaining the control of the merged party, and the relevant profits and losses, other comprehensive income and other net assets and other netassets changes between the date of acquisition of the original equity and the date on which the merging party and the merged party are underthe same control (whichever is later) and the merger date shall offset the period of between the opening retained earnings or current profits andlosses in the comparative reporting period.
During the reporting period, if subsidiaries or business are increased due to business combination of enterprises not under the same control, itshall be included in the consolidated financial statements as of the acquisition date on the basis of the fair value of all identifiable assets,liabilities and contingent liabilities determined on the acquisition date.
If it is able to exercise control over the invested entity that is not under the same control due to additional investment or other reasons, theequity held by the acquiree before the acquisition date shall be re-measured according to the fair value of the equity on the acquisition date,and the difference between the fair value and the book value shall be included into the current investment income. Other comprehensive income,which can be reclassified into profit and loss in the future, and other changes in owners’ equity under the equity method as related to theacquiree’s equity held before the acquisition date are converted to the investment income of the current period as of the acquisition date.
(2) Disposal of Subsidiary
① General disposal method
When the Company loses the control right over the invested entity due to disposal of part of the equity investment or other reasons, the residualequity investment after the disposal shall be re-measured at its fair value on the date of losing the control right. The difference between thesum of the consideration acquired by disposal of the equity and the fair value of the residual equity, minus the sum of the share of the net assetsof the original subsidiary continuously calculated from the acquisition date or the merging date and the goodwill according to the originalshareholding ratio, shall be included in the investment income in the period of loss of the control right. Other comprehensive income relatedto the equity investment of the original subsidiary that can be reclassified into profit and loss in the future, and other changes in owners’ equityunder the equity method are converted to the investment income in the period of loss of the control right.
② Disposal of subsidiary by steps
For disposal of the equity investment in the subsidiary by steps through multiple transactions till loss of the control right, the terms, conditionsand economic impact of the disposal on each transaction in respect of the equity investment of the subsidiary are subject to one or more of thefollowing circumstances, which generally indicate that the multiple transactions are package deals:
i. The transactions were entered into simultaneously or with consideration of their mutual influence;
ii. These transactions as a whole can only achieve a complete business result;
iii. The occurrence of one transaction depends on the occurrence of at least one other transaction;
iv. A transaction is not economical alone, but economic when considered with other transactions.
If each transaction belongs to a package deal, each transaction shall be subject to accounting treatment as a deal for disposal of subsidiary andloss of the control right; the difference between the disposal price and the share of net assets of the subsidiary corresponding to the disposal ofinvestment before the loss of control right is recognized as other comprehensive income in the consolidated financial statements and transferredinto the current profit and loss in the period of loss of control right.
If each transaction does not belong to a package deal, the equity investment of the subsidiary shall be subject to accounting treatment withoutloss of control right before losing the control right; and accounting treatment shall be carried out in accordance with the general disposalmethod of the subsidiary when losing the control right.
(3) Purchase of the minority equity of the subsidiaries
The difference between the long-term equity investment obtained due to the purchase of minority equity and the share of the net assets to beenjoyed and continuously calculated from the acquisition date or merging date according to the increased shareholding ratio is adjusted againstthe capital stock premium in the capital reserve in the consolidated balance sheet; if the capital stock premium in the capital reserve is notsufficient to offset the difference, the retained earnings shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without loss of control right
The difference between the disposal price and the disposal of long-term equity investment and the share of the net assets to be enjoyed andcontinuously calculated from the acquisition date or merging date, is adjusted against the capital stock premium in the capital reserve in theconsolidated balance sheet; if the capital stock premium in the capital reserve is not sufficient to offset the difference, the retained earningsshall be adjusted.
8. Joint Venture Arrangements Classification and Co-Operation Accounting Treatment
The joint venture arrangement is divided into joint management and joint venture.
Joint management means the joint venture arrangement in which the joint venture parties enjoy the assets and assumes the liabilities related tothe arrangement.
The Company confirms the following items related to the share of interests in the joint operation:
(1) Recognize the assets held solely by the Company and the assets jointly held according to the share of the Company;
(2) Recognize the liabilities undertaken solely by the Company and the liabilities jointly undertaken according to the share of the Company;
(3) Recognize the income generated from the sale of the Company’s share of the joint operation output;
(4) Recognize the income generated from the sale of outputs of the joint operation according to the share of the Company;
(5) Recognize the expenses incurred separately and the expenses incurred in joint operation according to the share of the Company
The Company’s investment in the joint venture shall be accounted by the equity method. See Note “V. 22 Long-term equity investment” fordetails.
9. Determining Standards of Cash and Cash Equivalents
Cash represents the Company’s cash on hand and the deposit readily available for payment. Cash equivalents represent the short-term, highlyliquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.
10. Foreign Currency Transaction and Foreign Currency Statement Translation
1. Foreign Currency Business
Foreign currency transaction adopts the spot exchange rate on the date of the transaction as the conversion exchange rate to convert the foreigncurrency amount into RMB for reporting.
At the balance sheet date, the balance of foreign currency monetary items are converted by using the spot exchange rates at the balance sheetdate. Exchange differences arising therefrom are recognized in current profit and loss, except the exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are treated according to the capitalization of borrowing costs.
2. Conversion of financial statements denominated in foreign currencies
The asset and liability items in the foreign currency balance sheets shall be translated at a spot exchange rate on the balance sheet date. Amongthe owner’s equity items, except the ones as “undistributed profits”, others shall be translated at the spot exchange rate at the time when theyare incurred. Income and expense items in the income statement are translated using the annual average exchange rate.
When disposing of the overseas operation, the balance of the financial statements denominated in foreign currencies related to the overseasoperation shall be transferred from the owner’s equity item to the profit and loss of the disposal period.
11. Financial Instruments
The Company recognizes a financial asset, financial liability or equity instrument when becoming a party of the financial instrument contract.
(1). Classification of financial instruments
According to the Company’s business model of managing financial assets and the contractual cash flow characteristics of financial assets, thefinancial assets are classified at the initial recognition as: financial assets measured at the amortized cost, financial assets measured at fair valueof which changes are recorded into other comprehensive income, and financial assets at fair value of which changes are recorded in currentprofit and loss.
The Company classifies the financial assets that meet the following conditions and are not designated to be measured at fair value and whosechanges are recorded into the profits and losses of the current period as financial assets measured at the amortized cost:
— The business model is aimed at collecting contract cash flows;
— The contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.
The Company classifies the financial assets that meet the following conditions and are not designated to be measured at fair value and whosechanges are recorded into the profits and losses of the current period as financial assets measured at fair value of which changes are recordedinto other comprehensive income (debt instrument):
— The business model is aimed at collecting contract cash flows and the sale of such financial assets;
— The contract cash flow is only the payment of the principal and interest based on the outstanding principal amount.
For non-trading equity instrument investments, the Company may, at the time of initial recognition, irrevocably designate them as financialassets measured at fair value of which changes are recorded into other comprehensive income (equity instrument). The designation is made ona single investment basis and the related investments meet the definition of an equity instrument from an issuer’s perspective.
Except the above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes are recordedinto other comprehensive income, the Company classifies all other financial assets as financial assets at fair value of which changes are recordedin current profit and loss. Upon initial recognition, if accounting mismatches can be eliminated or significantly reduced, the Company mayirrevocably designate the financial assets that should have been classified as those measured at the is based amortized cost or measured at fairvalue of which changes are recorded into other comprehensive income as the financial assets measured at fair value of which changes arerecorded in current profit and loss.
Financial liabilities are classified at the initial recognition as: financial liabilities measured at fair value of which changes are recorded incurrent profit and loss and financial liabilities measured at the amortized cost.
Financial liabilities that meet one of the following conditions may be designated at the initial recognition as the financial liabilities measuredat fair value of which changes are recorded in current profit and loss.
1) This designation can eliminate or significantly reduce accounting mismatches.
2) Manage and conduct performance evaluation of the financial liability portfolio or financial assets and financial liability portfolio on the
basis of fair value according to the enterprise risk management or investment strategy set forth in the official written documents, and report to the key management personnel within the enterprise on this basis.
3) The financial liability contains embedded derivatives that need to be split separately.
(2). Recognition basis and measurement method of financial instruments
1) Financial asset measured on the basis of post-amortization costs
The financial assets measured at the amortized costs include bills receivable, accounts receivable, other receivables, long-term receivables,debt investment, etc., which shall be initially measured at fair value, and the relevant transaction expenses are included in the initial recognizedamount; the receivables excluding major financing components and the accounts receivable that the Company decides not to consider thefinancing components of less than one year shall be initially measured at the contract transaction price.
The interest calculated by the effective interest rate method during the holding period is recorded into the current profit and loss.
Upon recovery or disposal, the difference between the price obtained and the book value of the financial assets shall be recorded into thecurrent profit or loss.
2) Financial assets measured at fair value of which changes are recorded into other comprehensive income (debt instrument)
Financial assets measured at fair value of which the changes are included in other comprehensive income (debt instrument), includingreceivables financing and other debt investments, are initially measured at fair value and related transaction costs are included in the initialrecognized amount. The financial asset is subsequently measured at its fair value, and changes in the fair value are recorded in othercomprehensive income, except the interest, impairment loss or gains and exchange gain and loss calculated by the effective interest rate method.
Upon the de-recognition, the accumulated gains or losses previously recorded in other comprehensive income will be transferred from othercomprehensive income to current profit and loss.
3) Financial assets measured at fair value of which changes are recorded into other comprehensive income (equity instrument)
Financial assets measured at fair value of which changes are recorded into other comprehensive income (equity instrument), including otherequity instrument investment, are initially measured at fair value and related transaction costs are included in the initial recognized amount.Such financial assets are subsequently measured at the fair value and the change in the fair value is recorded into other comprehensive income.The dividends obtained are recorded in current profit and loss.
Upon the de-recognition, the accumulated gains or losses previously recorded in other comprehensive income will be transferred from othercomprehensive income to retained earnings.
4) Financial assets measured at fair value of which the changes are included in current profit and loss
Financial assets measured at fair value of which changes are recorded in current profit and loss, including trading financial assets, derivativefinancial assets, other non-current financial assets, etc., are initially measured at fair value and related transaction expenses are recorded incurrent profit and loss. Such financial assets are subsequently measured at the fair value and the change in the fair value is recorded into currentprofit and loss.
5) Financial liabilities measured at fair values, changes of which recorded in the current profits or losses
Financial liabilities measured at fair value of which changes are included in current profit and loss, including trading financial liabilities,derivative financial liabilities, etc., are initially measured at fair value and related transaction expenses are recorded in current profit and loss.Such financial liabilities are subsequently measured at the fair value and the change in the fair value is recorded into current profit and loss.
Upon the de-recognition, the difference between its book value and the consideration paid is recorded in current profit and loss.
6) Financial liabilities measured at the amortized cost
Financial liabilities measured at amortized cost, including short-term loans, notes payable, accounts payable, other payables, long-termborrowings, bonds payable and long-term payables, are initially measured at fair value, and related transaction expenses are included in theinitial recognized amount.
The interest calculated by the effective interest rate method during the holding period is recorded into the current profit and loss.
Upon the de-recognition, the difference between the consideration paid and the book value of such financial liability is recorded in currentprofit and loss.
(3). When the basis and measurement method for derecognition of financial assets and transfer of financial assets meet one of the following
conditions, the Company derecognizes financial assets:
— Termination of the contractual right to collect the cash flow of financial assets;
— The financial assets have been transferred, and almost all the risks and remuneration in its ownership have been transferred to the
transferee;
— The financial assets have been transferred, and while the Company has neither transferred nor retained virtually all of the risks andremuneration in the ownership of the financial assets, it has not retained control of the financial assets.
If the Company and the counterparty modify or renegotiate the contract, and it constitutes a substantial modification, the original financialasset will be terminated, and a new financial asset will be recognized in accordance with the modified terms.
In the event of a financial asset transfer, if almost all the risks and remuneration in the ownership of the financial asset are retained, therecognition of the financial asset will not be terminated.
The principle of substance over form is adopted when judging whether the transfer of financial assets meets the above conditions for de-recognition of financial assets.
The Company divides the transfer of financial assets into the whole transfer of financial assets and the partial transfer of financial assets. If theoverall transfer of the financial asset meets the de-recognition conditions, the difference between the following two amounts shall be recordedinto the current profits and losses:
1) The book value of the transferred financial asset;
2) The sum of the consideration received from the transfer and the cumulative amount of the fair value changes originally included in owner’sequity directly (where the financial asset involved in the transfer is measured at fair value and the change is recorded in othercomprehensive income (debt instrument)).
If the partial transfer of the financial asset meets the de-recognition conditions, the book value of the overall transferred financial asset isdistributed between the derecognized and non-derecognized part according to the relative fair value and the difference between the followingtwo amounts is included in current profit and loss:
1) The book value of derecognized part;
2) Sum of the consideration of the derecognized part and the amount of corresponding derecognized part in the total fair value changes
originally included in owner’s equity directly (where the financial asset involved in the transfer is measured at fair value and the changeis recorded in other comprehensive income (debt instrument)).
If the transfer of the financial asset does not meet the conditions of de-recognition, such financial asset shall continue to be recognized and theconsideration received shall be recognized as a financial liability.
(4). De-recognition of financial liabilities
Where the current obligation of a financial liability has been discharged in whole or in part, such financial liability or part thereof shall bederecognized; if the Company enters into an agreement with the creditor to replace the existing financial liabilities by assuming new financialliabilities, and the contract terms of the new financial liabilities and the existing financial liabilities are substantially different, the Companyshall derecognize the existing financial liabilities and recognize the new financial liabilities at the same time.
If all or part of the contract terms of the existing financial liabilities are substantially modified, the existing financial liability or part thereofshall be derecognized, and the financial liabilities after the modification shall be recognized as new financial liabilities.
When a financial liability is derecognized in whole or in part, the difference between the book value of the derecognized financial liability andthe consideration paid (including non-cash asset transferred out or the new financial liability undertaken) is recorded in current profit and loss.
If the Company repurchases part of the financial liability, it shall allocate the overall book value of the financial liability on the repurchase dateaccording to the relative fair value of the continuing recognition part and the de-recognition part. The difference between the book valueallocated to the derecognized part and the consideration paid (including non-cash asset transferred out or the liability undertaken) is recordedin current profit and loss.
(5). Fair value determination method of financial assets and financial liabilities
The fair value of a financial instrument with an active market shall be recognized based on the quotation in the active market. The fair valueof a financial instrument without an active market shall be recognized by means of valuation techniques. Upon valuation, the Company adoptsvaluation techniques applicable to the current situation and supported by sufficient available data and other information, selects input valuesconsistent with the asset or liability characteristics considered by market participants in the transaction of related assets or liabilities, and givespriority to relevant observable input values. The Company uses non-observable input values only when relevant observable input values cannotbe obtained or are not practicable to obtain.
(6). Test method and accounting treatment method of financial instrument impairment
The Company estimates the expected credit losses of financial assets measured at amortized cost, financial assets measured at fair value ofwhich changes are recorded into other comprehensive income (debt instrument) and financial guarantee contracts.
The Company calculates the probabilistic weighted amount of the present value of the difference between the cash flows receivable under thecontracts and the cash flows expected to be received and recognizes the expected credit loss, taking into account reasonable and evidentialinformation concerning past events, current conditions and projections of future economic conditions, and weighting the risk of default.
For receivables and contract assets formed by transactions regulated by Accounting Standards for Business Enterprises No.14 - Revenue, theCompany always measures its loss provision at an amount equivalent to the expected credit loss over the entire duration, whether or not itcontains major financing components.
For lease receivables formed by transactions regulated by Accounting Standards for Business Enterprises No. 21 - Leasing, the Company optsto consistently measure its loss provisions at an amount equivalent to the expected credit losses throughout the entire duration.
For other financial instruments, the Company evaluates changes in the credit risk of relevant financial instruments since initial recognition oneach balance sheet date.
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date, theCompany determines the change of the default risk during the expected duration of the financial instruments, so as to assess whether the creditrisks of financial instruments have significantly increased since the initial recognition. In general, the Company will consider that the creditrisks of the financial instrument have increased significantly if it is more than 30 days overdue, unless there is conclusive evidence that thecredit risks of such financial instrument have not increased significantly since the initial recognition.
If the credit risks of the financial instrument are low on the balance sheet date, the Company considers that the credit risks of the financialinstrument have not increased significantly since the initial recognition.
If the credit risks of such financial instrument have increased significantly since the initial recognition, the Company shall measure its lossprovision according to the amount equivalent to the expected credit loss in the entire duration of such financial instrument. If the credit risksof such financial instrument have not increased significantly since the initial recognition, the Company shall measure the loss provisionaccording to the amount equivalent to the expected credit loss of such financial instrument in the next 12 months. The amount of the increaseor reversal of the loss provision resulting therefrom shall be recorded into the current profit and loss as an impairment loss or profit. Forfinancial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, the loss provisionis recognized in other comprehensive income, and the impairment loss or gain is included in the current profit and loss, without reducing thefinancial asset’s carrying amount shown on the balance sheet.
If there is objective evidence that a certain receivable has suffered credit impairment, the Company shall make provision for the impairmentof the receivables on an individual basis.
For financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, the loss provisionis recognized in other comprehensive income, and the impairment loss or gain is included in the current profit and loss, without reducing thefinancial asset’s carrying amount shown on the balance sheet.
The Company measures provisions for losses on promissory notes and receivable financing based on an amount equivalent to the expectedcredit losses throughout the entire duration. Based on the credit risk characteristics of notes receivable and receivable financing, it is dividedinto different portfolios:
| Item | Basis for recognition of combination and accrual method of provision for bad debt |
Notes receivable
| Notes receivable |
Banker’s acceptancebill
| Banker’s acceptance bill | If the acceptor is a bank with higher credit rating (such as large state-owned commercial banks and listed joint-stock commercial banks), no provision for bad debts shall be made; if the acceptor is another bank or financial company, the expected credit loss is analyzed based on historical information and judged whether it is necessary to make provision for bad debts. |
Trade acceptance
| Trade acceptance | If the acceptor is a non-financial institution, its division is the same as that of accounts receivable (if accounts receivable is transferred to notes receivables, the age of accounts is calculated continuously). |
Amounts receivablefinancing
| Amounts receivable financing |
Banker’s acceptancebill
| Banker’s acceptance bill | If the acceptor is a bank with a higher credit rating, no provision for bad debts will be made. |
The Company’s categorization and determination basis for expected credit losses for notes receivable - commercial acceptance bills, accountsreceivable, other receivables, prepaid accounts, etc. are as follows:
| Item | Category Class | Basis for determination |
Accounts receivable
| Accounts receivable |
Amounts receivable from related partieswithin the consolidation scope
| Amounts receivable from related parties within the consolidation scope | No credit risk portfolio | Unless there is objective evidence that they cannot be recovered, no provision for bad debts will be made for amounts within the scope of consolidation |
Amounts receivable from other customers
| Amounts receivable from other customers | Aging combination | Segment portfolios based on credit risk characteristics determined by the age of accounts receivable |
Other receivables
| Other receivables |
There is no credit risk associated withreceivables such as export tax rebates
| There is no credit risk associated with receivables such as export tax rebates | No credit risk portfolio |
Segment portfolios based on credit risk characteristics determinedby the nature of receivables, primarily including export taxrebates, etc.
| Other receivables from related parties within the consolidation scope | No credit risk portfolio | Unless there is objective evidence that they cannot be recovered, no provision for bad debts will be made for amounts within the scope of consolidation |
Security deposit receivable
| Security deposit receivable | Balance percentage combination | The credit risk characteristics of receivables are divided into combinations based on the nature of the receivables, primarily including deposits and margins. |
Other receivables
| Other receivables | Aging combination | Segment portfolios based on credit risk characteristics determined by the age of accounts receivable |
Advances to suppliers
| Advances to suppliers |
Prepaid amounts to related parties within theconsolidation scope
| Prepaid amounts to related parties within the consolidation scope | Unless there is objective evidence that they cannot be recovered, no provision for bad debts will be made for amounts within the scope of consolidation |
Other prepaid amounts
| Other prepaid amounts | Aging combination | Segment portfolios based on the aging of other prepayments to determine credit risk characteristics |
Provision for doubtful accounts for aging portfolio:
| Aging | Accruing proportion of accounts receivable (%) | Provision rate for other receivables | Accruing proportion of prepaid accounts (%) |
Within 1 year (including 1year)
| Within 1 year (including 1 year) | 5.00 | 5.00 |
1-2 year(s)
| 1-2 year(s) | 10.00 | 10.00 |
2-3 year(s)
| 2-3 year(s) | 30.00 | 30.00 | 50.00 |
3-4 year(s)
| 3-4 year(s) | 50.00 | 50.00 | 100.00 |
4-5 year(s)
| 4-5 year(s) | 80.00 | 80.00 | 100.00 |
More than 5 years
| More than 5 years | 100.00 | 100.00 | 100.00 |
Bad debt provisions for commercial acceptance bills receivable are accrued according to the expected credit loss rate of accounts receivablementioned earlier, with the aging start date of commercial acceptance bills corresponding to that of the accounts receivable.
The accrual ratio for balance percentage combination is 5% of the balance of accounts receivable.
If the Company no longer reasonably expects that the contract cash flow of a financial asset can be recovered in whole or in part, it will directlywrite down the book balance of such financial asset.
12. Notes Receivable
For details, please refer to Note V. Significant accounting policies and accounting estimates 11. Financial instruments.
13. Accounts Receivable
For details, please refer to Note V. Significant accounting policies and accounting estimates 11. Financial instruments.
14. Amounts Receivable Financing
For details, please refer to Note V. Significant accounting policies and accounting estimates 11. Financial instruments.
15. Other Receivables
Recognition method and accounting treatment method of the expected credit loss of other receivables
For details, please refer to Note V. Significant accounting policies and accounting estimates 11. Financial instruments.
16. Contract Assets
1. Methods and standards for the recognition of contract assets
The Company lists the contractual assets or contractual liabilities in the balance sheet according to the relationship between performanceobligations and customer payment. The Company’s rights to receive consideration for the transfer of goods or services to the customer (andsuch rights are subject to factors other than the passage of time) are listed as contractual assets. The contractual assets and contractual liabilitiesunder the same contract are listed in the net amount. The rights that the Company owns and unconditionally (depending only on the passageof time) to collect consideration from the customer are listed separately as receivables.
For the determination method and accounting treatment method of expected credit loss of contract assets, please refer to “V. Significantaccounting policies and accounting estimates 11. Financial instruments (6), test methods and accounting treatment methods of financialinstrument impairment” in this note.
17. Inventory
(1). Classification and cost of inventories
The inventories are classified as raw materials, low-value consumables, finished goods, work in progress, goods shipped in transit, goodsprocessed by commission, wrappage, etc.
Inventories are initially measured at cost. The inventory cost includes procurement costs, processing costs, and other expenses incurred to bringthe inventory to its current location and condition.
(2). Valuation method of delivered inventory
The sales of purchased finished products are priced according to the moving weighted average method at the time of shipment; the sales ofself-produced products are priced according to the standard cost method at the time of shipment, and the difference between the actual costand the standard cost shall be apportioned according to the inventory and sales ratio at the end of the period.
(3). Inventory system
The perpetual inventory system is adopted.
(4). Amortization methods of low-value consumables and wrappage
1) The 50-50 amortization method is adopted for low-value consumables;
2) The packaging adopts the one-time write-off method.
(5). Recognition criteria and accrual methods for inventory depreciation provisions
The inventories shall be measured on the balance sheet date according to the cost of inventories or net realizable value, whichever is lower. Ifthe cost of the inventories is higher than the net realizable value, the inventory falling price reserves shall be withdrawn. The net realizablevalue of inventories is the amount of the estimated sale price of the inventories subtracted by the estimated cost about to occur in completion,estimated selling expenses and related taxes in daily activities.
For the finished products, finished goods, materials for sale and other merchandise inventories directly used for sale, the net realizable valueis recognized by the amount of the estimated sale price of the inventories subtracted by the estimated selling expenses and related taxes innormal production and operation process; for the material inventory required to be processed, the net realizable value is recognized by theamount of the estimated sale price of the finished products subtracted by the estimated cost about to occur in completion, estimated sellingexpenses and related taxes in normal production and operation process; for the inventories held to perform the sales contract or labor contract,the net realizable value is calculated on the basis of contract price. If the number of the inventories held is greater than the quantity ordered inthe sales contract, the net realizable value of the excessive inventories is calculated on the basis of general sale price.
If the influence factors writing down the inventory value before having disappeared after withdrawal of the inventory falling price reserves,resulting in the net realizable value of the inventories higher than the book value, the amount written down is reversed within the originallywithdrawn amount of inventory falling price reserves and the amount reversed is included in current profits and losses.
18. Assets Held for Sales
(1). Held for sales
If the book value of an asset is recovered mainly through the sale (including the non-monetary assets exchange of commercial nature) ratherthan continuous use of a non-current asset or disposal group, such asset is classified as an asset held for sale.
The Company classifies non-current assets or disposal groups as held for sale if they meet the following conditions simultaneously:
1) Immediately available for sale under current conditions in accordance with the usual practice of selling such type of assets or disposalgroups in similar transactions;
2) The sale is highly likely, that is, the Company has resolved a sale plan and obtained a firm purchase commitment, and the sale is expectedto be completed within one year. Where the relevant provisions require the approval of the relevant authority or regulatory authority of theCompany before the sale, the approval has been obtained.
Where it is classified as non-current assets (not including financial assets and deferred income tax assets, the assets formed by the employeecompensation) or disposal groups held for sale, if its book value is higher than the net amount of the fair value minus the selling expense, thebook value is written down to the net amount of the fair value minus the selling expense, the amount written down is recognized as the assetsimpairment loss and included in the current profit and loss. The provision for impairment of available for sale assets is withdrawn.
(2). Discontinued Operation
Discontinued operation is a separate component that meets one of the following conditions and has been disposed of or classified into the heldfor sale category by the Company:
1) The component represents an independent principal business or an independent principal area of operation;
2) The component is part of an associated plan proposed to dispose of an independent principal business or an independent principal area ofoperation;
3) The component is a subsidiary acquired exclusively for resale.
The income statement segregates profits and losses from continuing operations and those from discontinued operations. Impairment losses,reversal amounts from discontinued operations, other operating gains and losses, and disposal gains and losses are accounted for within gainsand losses from discontinued operations. In the current period, if there are discontinued operations, the Company will reclassify the informationinitially presented as profits and losses from continuing operations to profits and losses from discontinued operations in the comparableaccounting period within the current financial statements.
19. Debt Investment
N/A
20. Other Debt Investments
N/A
21. Long-Term Receivables
For details, see Note 41, Lease (2) Accounting treatment of lease as lessor 2) Accounting treatment of finance lease.
22. Long-Term Equity Investment
(1). Criteria for determining joint control and significant influence
Joint control refers to the joint control over an arrangement in accordance with the relevant agreement, and the related activities of thearrangement can only be decided upon the unanimous consent of the parties sharing the control. Where the Company and other joint ventureparties jointly exercise joint control over the invested entity and enjoy rights over the net assets of the invested entity. The invested entity shallbe the joint venture of the Company.
Significant influence means the power to participate in the formulation of financial and operating decisions of the invested entity, but not thepower to control or jointly control the formulation of these policies together with other parties. If the Company is able to exert significantinfluence on the invested entity, the invested entity is a joint venture of the Company.
(2). Recognition of initial investment cost
1) Long-term equity investment formed by business combination
For the long-term equity investment in a subsidiary formed by business combination under common control, the share of the book value of theowner’s equity of the combining party in the consolidated financial statements of the final controlling party, on the combination date, isregarded as the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment andthe book value of paid consideration shall adjust the capital stock premium in capital reserve. If the capital stock premium in capital reserve isinsufficient to offset, the retained earnings shall be adjusted. Where it implements the control upon the invested entity under the same controldue to additional investment or other reasons, the difference between the initial investment cost of the long-term equity investment recognizedaccording to the above principle and the sum of the book value of the long-term equity investment before the combination plus the book valueof the new consideration for the acquisition of further shares on the merging date shall adjust the capital stock premium. If the capital stockpremium is insufficient to offset, the retained earnings shall be offset.
For the long-term equity investment in a subsidiary formed by business combination not under common control, the combined cost recognizedon the acquisition date is regarded as the initial cost of the long-term equity investment. Where it implements the control upon the investedentity not under the same control due to additional investment and other reasons, the sum of the book value of the original equity investmentplus the new investment cost is taken as the initial investment cost.
2) Long-term equity investment acquired by means other than business combination
If the long-term equity investment is acquired by means of cash payment, the initial investment cost shall be the purchase price actually paid.
If the long-term equity investment is acquired by issuing equity securities, the initial investment cost shall be the fair value of the equitysecurities issued.
(3). Subsequent Measurement and Approach for the Determination of Profit and Loss
1) Long-term equity investment checked by cost method
The long-term equity investment made by the Company in its subsidiaries adopts the cost method, unless the investment meets the conditionsof holding for sale. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actuallypaid upon acquisition of the investment, the Company recognize the investment income in the current period in accordance with the attributableshare of cash dividends or profit distributions declared by the invested entity.
2) Long-term equity investment checked by equity method
The long-term equity investment of joint ventures and cooperative enterprises shall be calculated by the equity method. The initial investmentcost of the long-term equity investment is not adjusted if it is greater than the difference between the fair value share of the net identifiableassets of the invested entity in the investment; if the initial investment cost of the long-term equity investment is less than the differencebetween the fair value share of the net identifiable assets of the invested entity in the investment, it is recorded in current profit and loss andthe cost of the long-term equity investment is adjusted.
The Company recognizes the investment income and other comprehensive income according to its share of net profit or loss and othercomprehensive income of the invested entity, and adjusts the boot value of the long-term equity investment accordingly; the Company decreasesthe book value of the long-term equity investment accordingly in accordance with the share of the profit distribution or cash dividends declaredby the invested entity; for changes in owner’s equity of the invested entity other than those arising from its net profit or loss, othercomprehensive income and profit distribution (abbreviated as “other changes in owner’s equity”), the Company adjusts the book value of thelong-term equity investment and records in the owner’s equity.
Upon recognizing the share of the net profit and loss, other comprehensive income and other changes in owner’s equity of the invested entity,it shall be recognized after adjusting the net income and other comprehensive income of the invested entity on the basis of the fair value of theidentifiable net assets of the invested entity when obtaining the investment, and in accordance with the Company’s accounting policies andaccounting periods.
The profits and losses of unrealized internal transactions between the Company and joint ventures, cooperative enterprises shall be calculatedaccording to the proportion that should be enjoyed by the Company and shall be offset. On this basis, investment income shall be recognized,except that the assets invested or sold constitute business. The unrealized internal deal loss between the Company and the invested entity isrecognized in full amount if attributable to the assets impairment loss.
The net loss incurred by the Company to the cooperative enterprise or joint venture, except for the liability for additional loss, shall be writtendown to zero by the book value of long-term equity investment and other long-term equity substantially constituting the net investment in thecooperative enterprise or joint venture. If the cooperative enterprise or joint venture achieves the net profits in the later periods, the Companyrecovers to recognize the gain sharing amount after making up for the unrecognized loss sharing amount with the gain sharing amount.
3) Disposal of long-term equity investment
On disposal of the long-term equity investment, the balance between the book value of the equity disposed of and the actual price obtained ischarged to current profit and loss.
If part of the long-term equity investment is disposed of by the equity method, and the remaining equity is still accounted by the equity method,the other comprehensive income recognized by the original equity method shall be carried forward on the same basis as the relevant assets orliabilities directly disposed of by the invested entity at the corresponding proportion, and the changes in other owners’ equity shall be carriedforward to the current profit and loss on a proportional basis.
If the joint control or significant influence on the invested entity is lost due to the disposal of equity investment or other reasons, othercomprehensive income of the original equity investment recognized by the equity method shall be subject to accounting treatment throughadopting the basis for the direct disposal of relevant assets or debts when the equity method is terminated. Other changes in owners’ equitywill be transferred to current profit and loss when the equity method is terminated.
If the Company loses its control rights over the invested entity due to the disposal of part of the equity investment, when preparing individualfinancial statement, in case of the residual equity with joint control or significant influence on the invested entity, the Company shall calculateand adjust the residual equity with equity method as upon obtaining. Other comprehensive income recognized before the acquisition of thecontrol right of the invested entity shall be carried forward proportionately on the same basis as the direct disposal of relevant assets or liabilitiesby the invested entity, and other changes in owners’ equity recognized by the equity method shall be carried forward proportionately to thecurrent profit and loss. If the residual equity cannot exercise joint control or exert significant influence on the invested entity, it shall berecognized as financial assets, the difference between its fair value and book value on the date of loss of control shall be included in the currentprofit and loss, and all other comprehensive income and other changes in owner’s equity recognized before obtaining the control right of theinvested entity shall be carried forward.
If the deals for disposal of the subsidiary’s equity investment by steps through several times of transaction until the loss of the control rightbelong to a package deal, the deals shall be subject to accounting treatment as a deal for disposal of the equity investment in the subsidiary andloss of the control right; the difference between each disposal price and the book value of the long-term equity investment corresponding tothe equity disposed of before the loss of control right is, in individual financial statements, recognized as other comprehensive income and thentransferred into the current profit and loss in the period of loss of control right. If it does not belong to a package deal, each deal shall beaccounted for separately.
23. Investment Real Estates
Measurement mode of investment real estate
Cost method
Depreciation or amortization method
Investment real estate refers to real estate held for the purpose of earning rent and/or capital appreciation, including leased land use rights, landuse rights held and prepared for transfer after appreciation, leased buildings (including self-constructed buildings and the buildings that are selfbuilt or developed for rent after completion of activities, as well as the buildings that are under construction or development for future lease).
Subsequent expenditures related to investment real estate are recognized as investment real estate costs when the related economic benefits arelikely to flow in and their costs can be reliably measured; Otherwise, it will be included in the current profit and loss at the time of occurrence.
The existing investment real estate are measured by our Company through the cost method. For investment real estate measured through thecost method, buildings for lease are applicable to the same depreciation policy as the Company’s fixed assets, right of use the leased land isapplicable to the same amortization policy as intangible assets.
24. Fixed Assets
(1) Recognition conditions
(1). Recognition and initial measurement of fixed assets
The fixed assets refer to the tangible assets which are held for production of goods, provision of labor, lease or operating management andwhose service life exceeds a fiscal year. The fixed assets can be recognized in the following conditions:
1) The economic benefits related to the fixed assets are likely to flow to the enterprise;
2) The cost of the fixed assets can be reliably measured.
The fixed assets are initially measured according to the cost (and the influence of the expected disposal cost factors).
Subsequent expenditure related to fixed assets, if the economic benefits related may flow in and the cost can be reliably measured, is includedin the fixed asset cost; and the book value of the replaced part is derecognized; all other subsequent expenditures are recorded into currentprofit and loss when incurred.
(2) Depreciation method
| Class | Depreciation method | Expected service life | Residual rate | Yearly depreciation |
Houses and building
| Houses and building | Straight-line depreciation | 10-38 years | 5.00%-10.00% | 2.37%-9.50% |
Machinery equipment
| Machinery equipment | Straight-line depreciation | 2-15 years | 5.00%-10.00% | 6.00%-47.50% |
Transportation equipment
| Transportation equipment | Straight-line depreciation | 3-10 years | 5.00%-10.00% | 9.00%-31.67% |
Electronic equipment and officeequipment, etc.
| Electronic equipment and office equipment, etc. | Straight-line depreciation | 2-10 years | 5.00%-10.00% | 9.00%-47.5% |
Offshore land ownership
| Offshore land ownership | Others | N/A | N/A | N/A |
No depreciation is provided for offshore land ownership.
25. Construction in Progress
The construction in progress is measured according to the actual cost incurred. Actual costs include construction costs, installation costs,borrowing costs eligible for capitalization, and other expenses necessary to bring the construction in progress to a predetermined usable state.When the construction in progress reaches the intended serviceable condition. it is transferred into fixed assets and begin to withdraw thedepreciation since the next month.
The criteria and timing for transferring the Company’s construction-in-progress to fixed assets are as follows:
| Class | Criteria and timing for conversion to fixed assets |
Houses andbuilding
| Houses and building | (1) The main construction project and supporting projects are substantially completed. (2) The construction project meets the scheduled design requirements and undergoes inspection and acceptance by survey, design, construction, supervision, fire protection, and quality supervision units. (3) The construction project reaches the intended usable state. If final accounts for completion are pending, it will be transferred to fixed assets at an estimated value based on the actual project cost from the date of achieving usability. |
Machineryequipment
| Machinery equipment | (1) Relevant equipment and supporting facilities are installed. (2) Equipment operates normally and stably after debugging. (3) Production equipment consistently yields qualified products. (4) Equipment is accepted by asset managers and users’ post-inspection. |
26. Borrowing Costs
(1). Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributed to the purchase, construction or production of the assets eligible forcapitalization, they shall be capitalized and recorded into the cost of the relevant assets; other borrowing costs shall be recognized as expensesaccording to the amount incurred at the time of occurrence and shall be recorded into the current profit and loss.
Assets meeting the capitalization conditions refer to the fixed assets, investment real estate, inventories and other assets which can reach theintended usable or marketable status only after quite a long time of construction or production activities.
(2). Capitalization period of borrowing costs
Capitalization period refers to the period from the time point at which borrowing costs begin to be capitalized to the time point at whichborrowing costs cease to be capitalized, excluding the period during which the capitalization of borrowing costs is suspended.
Capitalization begins when borrowing costs meet the following conditions:
1) Asset expenditures have been incurred, including expenditures incurred in the form of cash payment, transfer of non-cash assets orundertaking interest-bearing liabilities for the purchase and construction of or production of assets eligible for capitalization;
2) Borrowing costs have been incurred;
3) The purchase, construction or production activities which are necessary to prepare the asset for its intended use or sale have started.
When the purchase, construction or production of assets that meet the capitalization conditions reach the predetermined usable or marketablestate, the capitalization of borrowing costs shall cease.
(3) Capitalization suspension period
If the assets that meet the capitalization conditions are abnormally interrupted in the process of purchase and construction or production, andthe interruption period is more than 3 consecutive months, the capitalization of borrowing costs shall be suspended; if the interruption isnecessary for the purchase, construction or production of the assets that meet the capitalization conditions to reach the predetermined usablestate or marketable state, the borrowing costs shall continue to be capitalized. The borrowing costs incurred during the interruption period arerecognized as the current profit and loss, until the borrowing costs continue to be capitalized after the purchase and construction or theproduction activities of the assets are restarted.
(4) Calculation method of capitalization rate and capitalization amount of borrowing costs
For the specific borrowing for the purchase and construction or production of assets eligible for capitalization, the capitalization amount ofborrowing costs shall be recognized by the borrowing costs actually occurring in the current period of specific borrowing, minus the amountof the interest income obtained by depositing the unused borrowing funds in the bank or the investment income obtained by making temporaryinvestment.
For the general borrowing occupied for the purchase, construction or production of assets that meet the capitalization conditions, the amountof borrowing expenses to be capitalized for the general borrowing shall be calculated and recognized according to the weighted average of theaccumulated asset expenditure exceeding the specific borrowing multiplied by the capitalization rate of the general borrowing occupied. Thecapitalization rate is calculated and recognized according to the weighted average effective interest rate of the general borrowing.
During the capitalization period, the difference between the exchange of the principal and interest of the specific foreign currency borrowingshall be capitalized and recorded into the cost of the assets eligible for capitalization. The exchange difference arising from the principal andinterest of foreign currency borrowings other than specific foreign currency borrowing is recorded into the current profit and loss.
27. Biological Assets
N/A
28. Oil and Gas Assets
N/A
29. Intangible Assets
(1) Determining the useful life and its basis, estimation, amortization method, or review procedure
1. Pricing methods for intangible assets
1) The intangible assets are initially measured according to the cost;
The costs of purchased intangible assets include the purchase price, related taxes as well as other expenses incurred to make the assets reachthe intended serviceable conditions and attributable to the assets.
2) Subsequent measurement
The Company analyzes and judges the useful life of the intangible assets when obtaining.
The intangible assets with limited useful life shall be amortized within the period when the intangible assets bring economic benefits to theCompany; the intangible assets that cannot be expected to bring economic benefits to the Company are deemed to have uncertain life and arenot amortized.
2. Estimation of useful life of intangible assets with limited life
| Item | Expected useful life | Basis for determining expected service life |
Land use right
| Land use right | 38-50 years | Term of use specified in the land-use right certificate |
Software use right
| Software use right | 2-8 years | Useful life estimated by the management |
Trademark right
| Trademark right | 5-10 years | Benefit period specified in the certificate of trademark use |
Patent right
| Patent right | 5-10 years | Benefit period specified in the certificate of patent use |
Franchised use right
| Franchised use right | 3 | Term of use stipulated in the contract |
Client relations
| Client relations | 10 | Useful life estimated by the management |
3. Basis for judging intangible assets with uncertain service life and the procedures for reviewing their service life
During this reporting period, the Company has no intangible assets with uncertain service life.
(2) Collection scope of R&D expenditures and related accounting treatment methods
1) Collection scope of R&D expenditures
The Company’s R&D expenditure is directly related to the Company’s R&D activities, including the relevant staff salaries of personnelengaged in R&D activities, directly invested material expenses, depreciation and amortization expenses, and other expenses, and is collectedin the following ways: The related staff salaries of personnel engaged in R&D activities mainly refer to the salaries, bonuses, social securityand provident fund expenses of personnel directly engaged in R&D activities, the materials directly invested mainly refer to the relevantmaterials directly invested in R&D activities, the depreciation and amortization expenses mainly refer to the depreciation and amortization offixed assets or intangible assets used in R&D activities, and other expenses mainly refer to the travel expenses and testing fees of R&Dpersonnel directly related to the company’s R&D activities.
2) Specific criteria for dividing research stage and development stage
The expenditure of the Company’s internal R&D projects is classified into the expenditure at the research stage and the expenditure at thedevelopment stage.
Research stage: the stage of original, planned investigation and research activities to acquire and understand new scientific or technicalknowledge, etc.
Development stage: the stage in which research or other knowledge is applied to a plan or design to produce new or substantially improvedmaterials, devices, products, etc., prior to commercial production or use.
3) Specific conditions for the capitalization of expenditures in the development stage
The expenditure at the research stage is charged to the current profit and loss in occurrence. The expenditure at the development stage can berecognized as intangible assets only when meeting the following conditions and charged to the current profit and loss if not meeting thefollowing conditions:
a. Technically feasible to complete the intangible assets, so that they can be used or sold;
b. It is intended to finish and use or sell the intangible assets;
c. Ways of intangible assets to generate economic benefits, including those can prove that the products generated by the intangible assetscan be sold or the intangible assets themselves can be sold and prove that the intangible assets to be used internally are useful;
d. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient
technologies, financial resources and other resources; and
e. The development expenditures of the intangible assets can be reliably measured
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&D expenditure incurredis fully charged to the current profit and loss.
The Company needs to comply with the disclosure requirements of the “Medical Device Business” in the No. 4 Guideline of Shenzhen StockExchange for Self-regulatory of Listed Companies - Information Disclosure by Growth Enterprises.
30. Long-Term Assets Impairment
Long-term assets such as long-term equity investment properties using, fixed assets, construction in progress, right-of-use assets, intangibleassets with limited-service life, and oil and gas assets, which show signs of impairment on the balance sheet date, shall be subject to impairmenttests. If the impairment test results show that recoverable amount of the asset is below its book value, the provision for impairment is withdrawnaccording to the balance and charged to the impairment loss. The recoverable amount is determined according to the higher of the net amountof the assets fair value subtracted by the disposal costs and the present value of the expected future cash flow of the assets. The provision forimpairment of assets is calculated and recognized on the basis of single asset. The Company recognizes the recoverable amount of the assetgroup based on the asset group to which the asset belongs if the recoverable amount of the single asset is difficult to estimate. An asset groupis the smallest group of assets that can generate cash inflows independently.
The goodwill formed due to business combination, intangible assets with uncertain service life and intangible assets that have not yet reachedthe usable state shall be subject to impairment test at least at the end of each year regardless of whether there are signs of impairment.
The Company conducts the goodwill impairment tests. For the book value of the goodwill formed due to business combination, it shall beapportioned to relevant asset group by a reasonable method from the date of purchase; if it is difficult to apportion to the relevant asset group,it shall be apportioned to the relevant asset group combination. The relevant asset group or asset group combination is an asset group or assetgroup combination that can benefit from the synergies of business combination.
When conducting impairment test on the relevant asset group or asset group combination containing goodwill, if there are signs of impairmentin the asset group or asset group combination related to goodwill, conduct impairment test on the asset group or asset group combinationwithout goodwill at first, calculate the recoverable amount and recognize the corresponding impairment loss compared with the relevant bookvalue. Then conduct an impairment test on the asset group or asset group combination containing goodwill to compare its book value with therecoverable amount. If the recoverable amount is less than the book value, the amount of impairment loss shall first offset the book value ofgoodwill amortized to the asset group or asset group combination, and then offset the book value of other assets proportionally according tothe proportion of the book value of assets other than goodwill in the asset group or asset group combination. The above impairment loss ofassets will not be reserved in subsequent accounting periods once recognized.
31. Long-Term Unamortized Expenses
Long-term unamortized expenses refer to the expenses that have occurred but shall be burdened in the current period and later periods with theapportionment period more than one year.
Amortization method: long-term unamortized expenses are amortized on an average basis over the benefit period.
32. Contract Liabilities
The Company lists the contractual assets or contractual liabilities in the balance sheet according to the relationship between performanceobligations and customer payment. The obligations of the Company to transfer goods or provide services to customers for which considerationhas been received or receivable are listed as contractual liabilities. The contractual assets and contractual liabilities under the same contract arelisted in the net amount.
33. Employee Compensation
(1) Short-term compensation accounting method
The Company recognizes the short-term compensation incurred actually during the accounting period when the employees provide servicesfor the Company as the liabilities and includes in current profits and losses or related asset costs.
For the social insurance premiums and housing funds paid by the Company for the employees as wells as the labor union expenditure andpersonnel education fund withdrawn according to the provisions, the corresponding employee compensation amount is recognized accordingto the stipulated accruing basis and accruing proportion during the accounting period when the employees provide services for the Company.
The employee welfare expenses incurred by the Company shall be recorded into the current profit and loss or relevant asset cost according tothe actual amount when actually incurred, and the non-monetary welfare shall be measured at its fair value.
(2) Post-employment benefits accounting method
1) Defined contribution plan
The Company pays the basic endowment insurance and unemployment insurance for the employees according to relevant provisions of thelocal government, calculates the amount payable according to local payment base and proportion in the accounting period when the employeesprovide services for the Company, recognizes the amount payable as the liabilities and includes in current profits and losses or related assetcosts. In addition, the Company has also participated in the corporation pension plan / supplementary pension insurance fund approved by therelevant departments of the state. The Company pays the fees to the pension plan / local social security institution according to a certainproportion of the total employee wages and includes corresponding expenses in current profits and losses or related asset costs.
2) Defined benefit plan
The Company attributes the welfare obligations generated from the defined benefit plan to the period when the employees provide services bythe formula recognized according to the expected cumulative welfare unit method and includes in current profits and losses or related assetcosts.
The deficit or surplus formed from the present value of the defined benefit plan obligation subtracted by the fair value of the defined benefitplan assets is recognized as a net liability or net asset of the defined benefit plan. In case of surplus in the defined benefit plan, the Companymeasures the net assets of the defined benefit plan according to the lower of the surplus and asset upper limits of the defined benefit plan.
All defined benefit plan obligations, including the obligations for payment within 12 months after the end of the expected annual reportingperiod in which the employees provide services, are discounted according to the national debts matching the defined benefit plan obligatoryterm and currency or the market return of the high-quality corporation bonds active in the market on the balance sheet date.
The service costs generated from the defined benefit plan and the net interest of the net liabilities or net assets of the defined benefit plan areincluded in current profits and losses or related asset costs; the changes from re-measurement of the net liabilities or net assets of the definedbenefit plan are included in other comprehensive income and not written back to the profits and losses in subsequent accounting period. Uponthe termination of the original defined benefit plan, the part originally recorded into other comprehensive income within the scope of rightsand interests shall be carried forward to undistributed profit.
In the settlement of the defined benefit plan, the settlement profits or losses are recognized according to the balance between the present valueof the defined benefit plan obligation and the settlement price recognized on the settlement date.
(3) Termination benefits accounting method
When providing dismission welfare, the Company shall recognize the employee compensation liabilities arising from the dismission welfareand record it in the current profit and loss whenever is earlier below: when the Company fails to unilaterally withdraw the dismission welfaredue to termination of labor relation plan or downsizing suggestions; when the Company recognizes the costs or expenses related to restructuringinvolving payment of dismission welfare.
(4) Other long-term employee benefits accounting method
34. Estimated Liabilities
The estimated liabilities are recognized when the obligation related to contingencies meets the following conditions simultaneously:
(1) The obligation is the current obligation undertaken by the Company;
(2) Performance of the obligation is likely to lead to the outflow of economic benefits;
(3) The amount of the obligation can be reliably measured.
The estimated liabilities are initially measured at the best estimate of the expenditure required to perform the relevant current obligations.
In recognizing the best estimate, factors such as risk, uncertainty and time value of money related to contingencies are taken into account. Ifthe time value of money has a significant impact, the best estimate is determined by discounting the relevant future cash outflows.
If there is a continuous range of expenditure required and the probability of various outcomes within this range is the same, the best estimateis recognized according to the middle value within this range; in other cases, the best estimates are handled as follows:
? When a contingency involves a single item, the best estimate is recognized by the most possible amount.
? When a contingency involves more than one item, the best estimate is recognized according to a variety of possible outcomes and related
probabilities.
When all or some of the expenses necessary for the liquidation of an estimated liabilities is expected to be compensated by a third party, thecompensation shall be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained. Besides, theamount recognized for the reimbursement shall not exceed the book value of the estimated liabilities.
The Company reviews the book value of the estimated liabilities on the balance sheet date, and if there is conclusive evidence that the bookvalue cannot reflect the current best estimate, it shall adjust the book value according to the current best estimate.
35. Share-Based Payment
The Company’s share-based payment refers to a transaction in which the Company grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employee or other parties. The Company’s share-based payments shall consist of equity-settledshare-based payments and cash-settled share-based payments.
(1) Equity-settled share-based payments and equity instruments
Where the equity-settled share-based payment is exchanged for the services provided by the employee, it shall be measured at the fair value ofthe equity instrument granted to the employee. For share-based payment transactions with exercisable rights immediately after the grant, itshall be included in the relevant costs or expenses in accordance with the fair value of the equity instrument on the grant date, and the capitalreserves shall be increased accordingly. For the share-based payment transaction where the service within the waiting period is completed afterthe grant or specified performance conditions are met, on every balance sheet date of the waiting period, the Company shall include the serviceobtained at the current period into relevant costs or expenses according to the fair value of the grant date on the basis of the best estimate ofthe number of equity instruments with exercisable rights, and increase the capital reserve accordingly.
If the terms of the equity-settled share-based payment are modified, the services acquired are recognized at least in terms of the unmodifiedterms. In addition, any modification that increases the fair value of the equity instrument granted, or that is beneficial to the employee at thedate of modification, recognizes an increase in the acquisition of services.
During the waiting period, if the granted equity instrument is canceled, the Company will treat the canceled equity instrument as the acceleratedexercise of power, and immediately include the balance that shall be recognized in the remaining waiting period into the current profit and loss,and simultaneously confirm the capital reserve. However, if a new equity instrument is granted and the new equity instrument granted isdeemed to be a replacement for the cancelled equity instrument on the grant date, the granted replacement equity instrument will be handledin the same manner as any amendment to the terms and conditions of the original equity instrument.
(2) Cash-settled share-based payments and equity instrument
The cash-settled share-based payments will be measured according to the fair value of the liability confirmed basing on the shares borne bythe Company and other equity instruments. For share-based payment transactions with exercisable rights immediately after the grant, theCompany shall include it in the relevant costs or expenses in accordance with the fair value of the equity instrument on the grant date, and theliabilities shall be increased accordingly. If the rights can only be exercised after the situation that service within the waiting period is completedand set performance is achieved, the service obtained in the current period, according to the fair value of the liabilities borne by the Company,and basing on the best estimate for the condition of exercising rights, will be recorded into relevant costs or expenses on each and every balancesheet date during the waiting period, and correspondingly recorded into the liabilities. Each and every balance sheet date and settlement beforerelevant liability settlement, the fair value of liability will be remeasured, of which changes occurred will be counted into the current period.
If the Company modifies the terms and conditions of the cash-settled share-based payment agreement settled in cash to change it to equity-settled share-based payment, on the date of modification (whether during or after the waiting period), the Company will measure the equity-settled share-based payment according to the current fair value of the granted equity instrument, and include the services acquired in the capitalreserve. At the same time, it shall terminate the recognition of liabilities recognized on the modification date for the cash-settled share-basedpayment, with the difference recorded into the current profit and loss. If the waiting period is extended or shortened due to the modification,the Company will carry out accounting treatment according to the modified waiting period.
36. Preferred Shares, Perpetual Bonds and Other Financial Instruments
At the time of initial recognition, the Company classifies the financial instrument or its components as a financial asset, financial liability orequity instrument based on the terms of the contract and the economic substance reflected in the issued preferred stock / perpetual bond, andnot solely in legal form.
In case that the financial instrument such as perpetual bond / preferred stock issued by the Company meet one of the following conditions, itwill be classified as financial liabilities at the time of initial recognition in whole or in part:
(1) There are contractual obligations which the Company cannot unconditionally avoid fulfilling by delivering cash or other financial
assets;
(2) It contains contractual obligations of delivering a variable number of its own equity instruments for settlement;
(3) It contains derivative instrument (such as equity transfer, etc.) that is settled with its own equity, and such derivative instrument does
not exchange a fixed number of its own equity instruments for a fixed amount of cash or other financial assets for settlement;
(4) There are contract clauses that may indirectly lead to contractual obligations;
(5) When the issuer liquidates, the perpetual bonds are in the same order of liquidation as the ordinary bonds and other debts issued by
the issuer.
In case that the financial instrument such as perpetual bond / preferred stock issued by the Company does not meet one of the above conditions,it will be classified as equity instrument at the time of initial recognition in whole or in part.
37. Income
Accounting policies for income recognition and measurement
The Company has fulfilled its contractual obligation to recognize income when the customer acquires control of the relevant goods or services.Obtaining control of the relevant goods or services is the ability to dominate the use of the goods or services and gain almost all economicbenefits from them.
If the contract contains two or more performance obligations, the Company shall, on the commencement date of the contract, apportion thetransaction price to each individual performance obligation according to the relative proportion of the individual selling price of the goods orservices committed by each individual performance obligation. The Company’s income shall be measured according to the transaction priceapportioned to each individual performance obligation.
The transaction price means the amount of consideration that the Company is expected to be entitled to collect for the transfer of goods orservices to the customer, excluding payments collected on behalf of third parties and amounts expected to be returned to the customer. TheCompany determines the transaction price in accordance with the terms of the contract and in combination with its past practices, and indetermining the transaction price, it takes into account the impact of variable consideration, material financing elements in the contract, non-cash consideration, consideration payable to customers and other factors. The Company determines the transaction price including the variableconsideration by an amount not exceeding the amount of accumulated recognized income which is highly unlikely to be materially reversedwhen the relevant uncertainty is eliminated. If there is a material financing component in the contract, the Company shall determine thetransaction price based on the amount payable in cash when the customer acquires control of the goods or services, and shall amortize thedifference between the transaction price and the contract consideration by the effective interest method during the contract period.
If one of the following conditions is satisfied, it shall be deemed to have performed its performance obligation within a certain period of time;otherwise, it shall be deemed to have performed its performance obligation at a certain time point:
? The customer obtains and consumes the economic benefits arising from the Company’s performance at the same time of the Company’s
performance.
? The customer can control the goods under construction during the Company’s performance.
? The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled to receive
payment for the accumulated part of the performance completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the income in accordance with theperformance progress during that period, except where the performance progress cannot be reasonably determined. Taking into account thenature of the goods or services, the Company will use the output method or input method to determine the performance schedule. If theperformance schedule cannot be reasonably determined and the cost already incurred is expected to be compensated, the Company shallrecognize the income according to the cost already incurred until the performance schedule can be reasonably determined.
For performance obligations performed at a certain time point, the Company recognizes income at the time point when the customer acquirescontrol of the relevant goods or services. In determining whether the customer has acquired control of goods or services, the Company considersthe following indications:
? The Company has the current collection right for the goods or services, that is, the customer has the current payment obligation for thegoods or services.
? The Company has transferred legal ownership to the goods to the customer, that is, the customer has legal ownership of the goods.
? The Company has physically transferred the goods to the customer, that is, the customer has physically possessed the goods.
? The Company has transferred the main risk and remuneration in the ownership of the goods to the customer, that is, the customer has
acquired the main risk and remuneration in the ownership of the goods.
? The customer has accepted the goods or services, etc.
Confirmation and measurement method for differences in income recognition accounting policies caused by different business modes for thesame business
The Company determines its role as principal or agent in transactions based on whether it exercises control over the goods or services beforetransferring them to the customer. If the Company has control over the goods or services prior to transfer, it acts as the principal and recognizesrevenue based on the total consideration received or receivable. Conversely, if the Company lacks control over the goods or services beforetransfer, it acts as the agent and recognizes revenue in the form of commissions or fees according to expectations.
Specific principles of recognition of income from selling goods:
(1) General foreign sales: recognize the income after commodity inspection, customs declaration and shipment of goods (the Company’s
export income settlement mainly adopts FOB and CIF methods. For a very small number of other settlement methods, such as forthose adopting EXW terms, the buyer designates carrier door-to-door delivery as the time point of recognition of product sales revenue;for those adopting FCA terms, the delivery of products to the carrier designated by the buyer shall be the time point of recognition ofproduct sales revenue; for those adopting the DDP/DDU terms, the delivery of products to the destination designated by the buyershall be the time point of recognition of product sales revenue).
(2) General domestic sales: the recognition time of sales revenue is based on the customer’s confirmation of receipt (that is, the income
is recognized after the customer signs for the receipt, but if the contract stipulates that acceptance is needed, the income will berecognized after acceptance by the customer).
(3) E-commerce business (B2C): the recognition time of sales revenue is based on the customer’s confirmation of the completion of the
transaction (i.e., the income is recognized when the customer initiatively confirms receipt of the goods on the e-commerce platformand when the e-commerce platform automatically confirms receipt of the goods within a certain period of time after delivery,whichever is earlier).
(4) Store sales model: sales revenue is recognized according to settlement time and price (that is, the income is recognized after the store
salesperson receives payment and delivers the goods to the customer).
(5) Consignment mode: the Company delivers the goods to the place designated by the agent, and recognizes the income after receiving
the sales list and checking it according to the time of reconciliation agreed in the contract.
38. Contract Cost
Contract cost includes the contract performance cost and the contract acquisition cost.
If the cost incurred by the Company for the performance of the contract is not within the scope of relevant standards for inventory, fixed assetsor intangible assets, it shall be recognized as an asset as a contract performance cost when the following conditions are met:
(1) The cost is directly related to a current or anticipated contract.
(2) The cost increases the Company’s future resources to meet its performance obligations.
(3) The cost is expected to be recoverable.
If the Company is expected to recover the incremental cost incurred in acquiring the contract, it shall be recognized as an asset as the contractacquisition cost.
Assets related to contract costs are amortized on the same basis as income recognition of goods or services related to the asset; however, if theamortization period of the contract acquisition cost is less than one year, the Company shall record it into the current profit and loss when it isincurred.
If the book value of an asset related to the contract cost is higher than the difference between the following two items, the Company shall drawan impairment provision for the excess portion and recognize it as the assets impairment loss:
(1) Remaining consideration expected to be obtained as a result of the transfer of the goods or services related to the asset;
(2) The costs is estimated and to be incurred for the transfer of the relevant goods or services.
If the factors of impairment in the previous period change so that the difference above is higher than the book value of the asset, the Companyshall reverse the withdrawn impairment provision and include it into the current profit and loss, but the book value of the reversed asset shallnot exceed the book value of such asset on the reversal date if the impairment provision is not withdrawn.
39. Government Subsidies
(1) Type
Government subsidies refer to the monetary assets or non-monetary assets obtained free of charge by the Company from the government, andare classified into asset related government subsidies and the income related government subsidies.
Government subsidies related to assets refer to the government subsidies obtained by the Company for the purchase and construction of long-term assets or the formation of long-term assets by other means. Government subsidies related to income refer to government subsidies inaddition to government subsidies related to assets.
The Company’s classifying government subsidies as related to assets is subject to the following specific criteria: the government documentsclearly stipulate the use of funds, and the expected use direction of the funds is expected to form related assets;
The Company’s classifying government subsidies as related to income is subject to the following specific criteria: the government documentsdo not stipulate the use purpose, and the expected use direction of the funds is to supplement working capital;
If the subsidy object is not clearly specified in the government documents, the judgment basis for the Company to classify the governmentsubsidy as related to assets or related to income is as follows: except that the Company designates its purpose as related to assets, it will beincluded in the current profit and loss.
(2) Recognition time point
Government subsidies will be recognized when the conditions attached to them are met and received by the Company.
(3) Accounting treatment
The government subsidies related to assets write down the book value of the relevant assets or is recognized as deferred income. If it isrecognized as deferred income, it shall be recorded into the current profit and loss by stages in accordance with reasonable and systematicmethods during the service life of the relevant assets (if it is related to the daily activities of the Company, it shall be recorded into other income;those not related to the daily activities of the Company shall be included in non-revenue);
If the government subsidy related to the income is used to compensate the Company’s related costs, expenses or losses in the following period,it shall be recognized as deferred income and recorded into the current profit and loss during the period of recognition of the relevant costs,expenses or losses (if it is related to the Company’s daily activities, it shall be recorded into other income; if it is not related to the dailyactivities of the Company, it shall be included in non-operating income) or write down relevant costs, expenses or losses; those used tocompensate the relevant costs, expenses or losses incurred by the Company shall be directly recorded into the current profit and loss (if it isrelated to the daily activities of the Company shall be recorded into other income; if it is not related to the daily activities of the Company, itshall be included in non-operating income) or write down relevant costs, expenses or losses.
The interest subsidy on policy-based preferential loans obtained by the Company shall be accounted for under the following two conditions:
1) If the finance department allocates the interest subsidy fund to the lending bank, and the lending bank provides the loan to the Companyat the policy-based preferential interest rate, the Company shall take the loan amount actually received as the entry value of the borrowing,and calculate the relevant borrowing cost in accordance with the loan principal and the policy-based preferential interest rate.
2) If the finance department allocates the interest subsidy fund directly to the Company, the Company will offset the corresponding interestsubsidy against the related borrowing costs.
40. Deferred Income Tax Assets / Deferred Income Tax Liabilities
The income tax includes current income tax and deferred income tax. Except for the income tax arising from the business combination and thetransaction or item directly booked into the owners’ equity (including other comprehensive income), the Company will record the currentincome tax and deferred income tax into the current profit and loss.
Deferred income tax assets and deferred income tax liabilities shall be calculated and recognized on the basis of the difference (temporarydifference) between the tax basis of the assets and liabilities and their book value.
For the deferred income tax assets recognized through deductible temporary difference, it is limited to the amount of taxable income which islikely to be obtained to offset the deductible temporary difference in the future period. For the deductible loss and tax deduction that can becarried forward to the subsequent year, the corresponding deferred income tax assets are recognized within the limit of the future taxableincome amount that is possibly obtained to deduct the deductible loss and tax deduction.
For taxable temporary differences, except in special circumstances, the deferred income tax liability is recognized.
Special circumstances in which deferred income tax assets or deferred income tax liabilities are not recognized include:
(1) Initial recognition of goodwill;
(2) Transactions or events that are neither a business combination nor affect accounting profit and taxable income (or deductible losses)
at the time of occurrence, and the initial recognition of assets and liabilities does not result in equal amounts of taxable temporarydifferences and deductible temporary differences.
For the taxable temporary difference related to the investment of the subsidiaries, associated enterprises and joint ventures, relevant deferredincome tax liabilities are not recognized, unless the Company can control the temporary difference write-back time and the temporary differencewill probably not be written back in the foreseeable future. For the deductible temporary difference related to the investment of the subsidiaries,joint ventures and cooperative enterprises, deferred income tax assets are recognized when it is likely to write back the temporary differencein the foreseeable future or to obtain the income tax payable used to offset the deductible temporary difference in the future.
The deferred income tax assets and deferred income tax liabilities are measured on the balance sheet date according to the tax law and theapplicable tax rate in the period of expected recovery of relevant assets of liquidation of relevant liabilities.
On the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likely not to obtain sufficient incometax payable to deduct the interests of the deferred income tax assets in the future, the book value of the deferred income tax assets is writtendown. If it is likely to obtain sufficient income tax payable, the amount written down is written back.
When the Company has the legal right to settle with net amount and intends to settle with net amount or obtain the assets and liquidate theliabilities simultaneously, the income tax assets and income tax liabilities in the current period are presented by the net amount after offset.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities are listed in net amount after offset when both ofthe following conditions are met:
(1) The taxpayer has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;
(2) The deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax col lection and
management department from the same subject of tax payment or from different subjects of tax payment but the subject of tax paymentinvolved intends to settle the current income tax assets and liabilities with the net amount or obtain the assets and liquidate the liabilitiessimultaneously in each future important period when the deferred income tax assets and liabilities are written back.
41. Leased
(1) Lease accounting for lessees
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee within a certain period of time to for consideration.On the commencement date of the contract, the Company assesses whether the contract is a lease or contains a lease. If a party to the contracttransfers the right to control the use of one or more identified assets within a certain period in exchange for consideration, the contract is alease or contains a lease.
If a contract contains several separate leases information, the Company will split the contract and conduct accounting treatment for each of theseparate leases. When a contract contains both lease and non-lease information, the lessee and the lessor shall separate lease information fromand non-lease information.
1. The Company acts as the lessee:
(1) Right-of-Use Assets
On the commencement date of the lease period, the Company recognizes right-of-use assets for leases other than short-term leases and leasesof low-value assets. The right-of-use assets is initially measured at cost. The cost includes:
1) The initial measurement amount of the lease liabilities;
2) If there is a lease incentive for the lease payment paid on or before the start of the lease term, the amount of the granted lease incentiveshall be deducted;
3) The initial direct expenses incurred by the Company;
4) Costs expected to be incurred by the Company to disassemble and remove a leased asset, restore the site where the leased asset is located,
or restore the leased asset to the condition agreed upon under the terms of the lease (excluding costs incurred to produce inventory).
The Company subsequently withdraws depreciation of right-of-use assets with the straight-line method. Where it can be reasonably determinedthat the ownership of the leased assets can be acquired upon the expiration of the lease term, depreciation shall be calculated and withdrawnby the Company within the service life of the leased assets; Otherwise, the depreciation shall be calculated and withdrawn within a shorterperiod of the lease term and the service life of the leased assets.
The company determines whether the right-of-use asset has been impaired in accordance with the principles described in Note “V. 30. Long-term assets impairment”, and conducts accounting treatment for the identified impairment losses.
(2) Lease Liabilities
On the commencement date of the lease period, the Company recognizes lease liabilities for leases other than short-term leases and leases oflow-value assets. Lease liabilities are initially measured at the present value of outstanding lease payments. Lease payments include:
1) Fixed payments (including actual fixed payments), if there is lease incentive, the relevant amount of lease incentive shall be deducted;
2) Variable lease payments that depend on an index or rate;
3) The amount estimated to be paid based on the residual value of the guarantee provided by the Company;
4) The exercise price of the purchase option, provided that the Company reasonably determines that the option will be exercised;
5) The amount to be paid to exercise the option to terminate the lease, provided that the lease term reflects that the Company will exercisethe option to terminate the lease.
The Company adopts the interest rate implicit in the lease as the discount rate. However, if the interest rate implicit in the lease cannot bereasonably determined, the incremental borrowing interest rate of the Company will be adopted as the discount rate.
The Company calculates the interest expense of the lease liability during each period of the lease term at a fixed periodic rate, and includes itin the current profit and loss or the cost of related assets.
Variable lease payments that are not included in the measurement of the lease liabilities shall be included in current profit or loss or the cost ofthe related asset when they are actually incurred.
After the commencement date of the lease term, in case of the following circumstances, the Company shall remeasure the lease liabilities andadjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities stillneed to be further reduced, the difference shall be included in the current profit and loss:
1) In case of any change in the appraisal results of the purchase option, lease renewal option or termination option, or the actual exercise of
the aforementioned options is inconsistent with the original appraisal result, the Company shall remeasure the lease liability according tothe present value which is calculated based on the changed lease payment and the revised discount rate;
2) In case of any change in substantial fixed payment, the estimated payable amount of the residual value of the guarantee, or the index orratio used to determine the lease payment, the Company shall remeasure the lease liability according to the present value which is calculatedbased on the changed lease payment and the revised discount rate. However, where the changes in lease payment results from the changein floating interest rate, a revised discount rate will be used for calculation of the present value.
(3) Short-term leases and low-value asset leases
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, and includesthe relevant lease payments in the current profit and loss or related asset costs on a straight-line basis over each period of the lease term. Short-term leases refer to the leases with a lease term of not more than 12 months and excluding purchase options on the commencement date of thelease term. Low-value asset leases refer to the leases with a lower value when the single leased asset is a new asset. Where the Companysubleases or expects to sublease the leased assets, the original lease will not be a low-value asset lease.
(4) Lease changes
In case of any lease changes that meet the following conditions, the Company shall treat the lease change as a separate lease for accountingtreatment:
1) The lease change expands the lease scope by adding the right to use one or more leased assets;
2) The increased consideration is equivalent to the amount of the separate price of the expanded part of the lease upon adjustment based on thecontract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the Company shall reallocate theconsideration of the contract after the change, redetermine the lease term, and remeasure the lease liability according to the present value whichis calculated based on the changed lease payment and the revised discount rate.
If the lease change leads to the narrowing of the lease scope or the shortening of the lease term, the Company shall reduce the book value ofthe right-of-use asset accordingly, and credit the relevant gains or losses on partial or complete termination of the lease into the current profitand loss. If other lease changes result in re-measurement of lease liabilities, the Company shall adjust the book value of the right-of-use assetaccordingly.
(2) Lease accounting for lessors
The Company classifies leases as finance leases and operating leases at the commencement date of the lease term. Finance leases refers to theleases where almost all risks and rewards related to the ownership of leased assets have been substantively transferred regardless of whetherthe ownership is eventually transferred or not. Operating leases refer to leases other than financial leases. When the Company acts as a subleaselessor, sublease classification will be made based on the right-of-use asset arising from the original lease.
1) Accounting for operating lease
The lease receipts from operating lease are recognized as rental income on a straight-line basis over each period of the lease term. The Companycapitalizes the initial direct expenses incurred in relation to operating leases, which are amortized and included in the current profit and loss onthe same basis as the rental income is recognized during the lease term. The variable lease payments not credited into lease receipts shall beincluded into current profit or loss or when they are actually incurred. In case of any change in the operating lease, the Company shall treat itas a new lease for accounting treatment from the effective date of the change, and the advance receipts or lease receivables related to the leasebefore the change shall be deemed to be the amount received for the new lease.
2) Accounting for finance lease
On the commencement date of the lease term, the Company recognizes finance lease receivables for finance leases and terminates therecognition of the finance lease assets. When the Company initially measures the finance lease receivables, the net lease investment is regardedas the entry value of the finance lease receivables. The net lease investment is the sum of the unguaranteed residual value and the present valueof the lease receipts that have not been received at the commencement date of the lease, discounted at the interest rate implicit in the lease.
The Company calculates and recognizes the interest income during each period of the lease term at a fixed periodic rate. The derecognitionand impairment of finance lease receivables shall be accounted for in accordance with Note “V. 11. Financial instruments”.
The variable lease payments that are not included in the measurement of net lease investment shall be included in current profit or loss or whenthey are actually incurred.
In case of any changes to finance lease that meet the following conditions, the Company shall treat the change as a separate lease for accountingtreatment:
? The change expands the lease scope by adding the right to use one or more leased assets;
? The increased consideration is equivalent to the amount of the separate price of the expanded part of the lease upon adjustment basedon the contract.
In case that the change of a financial lease is not accounted for as a separate lease, the Company shall deal with the changed lease under thefollowing circumstances:
? If the change takes effect on the commencement date of the lease term, and the lease is classified as an operating lease, the Companywill account for it as a new lease from the effective date of the lease change, and take the net lease investment before the effective dateof the lease change as the book value of the leased asset;
? If the change takes effect on the commencement date of the lease term, and the lease is classified as a financial lease, the Company willconduct accounting treatment according to the policy in Note “III. (10) Financial instruments” regarding the modification orrenegotiation of contracts.
42. Other Significant Accounting Policy and Accounting Estimate
1. Hedge accounting
(1) Classification of hedging
1) A fair value hedge refers to a hedge of the fair value change risk of an asset or liability that has been recognized and a certain commitmentthat has not been recognized (except foreign exchange risk).
2) A cash flow hedge refers to a hedge of the risk of changes in cash flow arising from a particular type of risk relating to a recognized assetor liability, an anticipated transaction that is likely to occur, or the foreign exchange risk contained in an unrecognized firm commitment
3) A hedge of net investment in overseas operations refers to a hedge of foreign exchange risks of net investment of overseas operations. Net
investment in overseas operations refers to the equity share of the enterprise in the net assets of overseas operations.
(2) Designation of hedging relationship and identification of hedging effectiveness
At the beginning of the hedging relationship, the Company has a formal designation of the hedging relationship and has prepared formal writtendocuments on the hedging relationship, risk management objectives and hedging strategies. The documents specify the nature and quantity ofthe hedging instrument, the nature and quantity of the hedged items, the nature of the hedged risk, type of hedging, and the Company’sevaluation of the effectiveness of the hedging instrument. Hedging effectiveness refers to the degree to which the change in the fair value orcash flow of the hedging instrument can offset the change in the fair value or cash flow of the hedged item caused by the hedged risk.
The Company continuously evaluates the effectiveness of hedging and judges whether the hedging meets the requirements of hedgingaccounting for effectiveness during the accounting period in which the hedging relationship is designated. If it is not satisfied, the hedgingrelationship shall be terminated.
The application of hedge accounting shall meet the following requirements for the effectiveness of hedging:
1) There is an economic relationship between the hedged item and the hedging instrument.
2) In the value changes caused by the economic relationship between the hedged item and the hedging instrument, the influence of credit risk
does not play a dominant role.
3) Adopting the appropriate hedge ratio will not cause the imbalance between the relative weight of the hedged item and the hedging
instrument, thus generating accounting results inconsistent with the hedge accounting objectives. If the hedge ratio is no longer appropriate,but the hedging risk management objectives have not changed, the number of hedged items or hedging instruments shall be adjusted tomake the hedge ratio meet the requirements of effectiveness again.
(3) Hedge accounting treatment methods
1) Fair value hedging
Changes in the fair value of hedge derivative instruments are recorded in the current profit and loss. Changes formed by the fair value of thehedged item due to the hedging risk shall be included in the current profit and loss, and the book value of the hedged item shall be adjustedsimultaneously.
For fair value hedging related to financial instruments measured at amortized cost, the adjustments to the book value of the hedged item areamortized during the remaining period between the adjustment to the due date and recorded in the current profit and loss. Amortization underthe effective interest rate method may commence immediately after the book value adjustment and shall not be later than the adjustment of fairvalue changes in the termination of hedging risks by the hedged item.
If the hedged item is terminated, the unamortized fair value is recognized as the current profit and loss.
Where the hedged item is a firm commitment that has not been recognized, the accumulative change in the fair value of the firm commitmentcaused by the hedging risk is recognized as an asset or liability, and the relevant gains or losses are recorded into the current profits and losses.Changes in the fair value of hedging instruments are also recorded in the current profit and loss.
2) Cash flow hedging
The part of the gain or loss of the hedging instrument that belongs to the effective hedging shall be directly recognized as other comprehensiveincome, while the part that belongs to the invalid hedging shall be recorded into the current profit and loss.
If the hedged transaction affects the current profit and loss, such as when the hedged financial income or financial expense is recognized orwhen the expected sale occurs, the amount recognized in other comprehensive income will be transferred to the current profit and loss. If ahedged item is the cost of a non-financial asset or non-financial liability, the amount originally recognized in other comprehensive incomeamount is transferred out and recorded into the amount of initial recognition of the non-financial asset or non-financial liability (or the amountoriginally recognized in other comprehensive income is transferred out during the same period as the non-financial asset or non-financialliability affecting the profit and loss, and recorded into the current profit and loss).
If the expected transaction or firm commitment is not expected to occur, the accumulated gains or losses of the hedging instrument previouslyrecorded in other comprehensive income are transferred out and recorded in the current profit and loss. If the hedging instrument has expired,been sold, the contract terminated or exercised (but not replaced or renewed), or the designation of the hedging relationship is withdrawn, theamount previously recorded in other comprehensive income is not transferred out until the anticipated transaction or firm commitment affectsthe current profit or loss.
3) Hedging of net investment in overseas operations
The hedging of net investment in overseas operations, including the hedging of monetary items that are part of the net investment, shall betreated similarly to the cash flow hedging. In the gain or loss of the hedging instrument, the part that is recognized as effective hedging isrecorded in other comprehensive income, while the part that is invalid hedging is recognized as current profit and loss. When disposing ofoverseas operations, any accumulated gains or losses previously recorded in other comprehensive income will be transferred out and recordedinto current profit and loss.
2. Repurchase of the Company’s shares
If the Company repurchases its shares due to the reduction of its registered capital, it shall debit the “Treasury Stock” and credit the “BankDeposits” and other subjects according to the amount actually paid. When the treasury stock is cancelled, the total par value of the sharescalculated according to the par value of the shares and the number of cancelled shares shall be debited to the “Share Capital”, and the bookbalance of the cancelled treasury stock shall be credited to the “Treasury Stock”. The premium originally recorded in the capital surplus at thetime of stock issuance shall be offset according to the difference, and the “Capital Surplus - capital stock premium” shall be debited. The partof the repurchase price exceeding the above offset of “Share Capital” and “Capital Surplus - capital stock premium” shall be debited to the“Surplus Reserves” and “Profit Distribution - undistributed profits” and other subjects in turn. If the repurchase price is lower than the sharecapital corresponding to the repurchased shares, the difference between the book balance of the cancelled treasury stock and the offset sharecapital will be treated as an increase in capital stock premium, and debit to the “Share Capital” according to the par value of the share capitalcorresponding to the repurchased shares, credit the “Treasury Stock” according to the book balance of the cancelled treasury stock, and creditthe “Capital Surplus - capital stock premium” according to the difference.
3. Debt Restructuring
(1) The Company acts as the lessor:
The Company ceases recognition of claims when the contractual right to collect cash flows from the claims expires. In cases where debt isrestructured through settlement with assets or conversion into equity instruments, the Company recognizes the relevant assets once they meetthe criteria for definition and recognition.
If debt restructuring involves repaying debts with assets, transferred non-financial assets are initially measured at cost upon recognition by theCompany. The cost of inventory comprises the fair value of relinquished claims and other directly attributable costs such as taxes, transportationfees, loading and unloading fees, insurance premiums, and expenses incurred to bring the asset to its current location and condition. Similarly,the cost of an investment in an associate or joint venture encompasses the fair value of relinquished claims and other directly attributable costssuch as taxes. The cost of investment real estate incorporates the fair value of relinquished claims and other directly attributable costs, such astaxes, associated with the asset. Similarly, the cost of a fixed asset encompasses the fair value of relinquished claims and other directlyattributable costs, including taxes, transportation fees, loading and unloading fees, installation fees, professional service fees, and otherexpenses incurred before the asset reaches its intended usable condition. The cost of biological assets comprises the fair value of relinquishedclaims and other directly attributable costs, such as taxes, transportation fees, and insurance premiums, associated with the assets. The costs ofintangible assets include the purchase price, related taxes as well as other expenses incurred to make the assets reach the intended serviceableconditions and attributable to the assets. If debt restructuring involves converting debt into equity instruments, resulting in the creditorconverting its claim into an equity investment in an associate or joint venture, the Company shall measure it based on the fair value of therelinquished claim and taxes, along with other costs directly attributable to the asset, to determine its initial investment cost. Upon recovery ordisposal, the difference between the price obtained and the book value of the financial assets shall be recorded into the current profit or loss.
In case of debt restructuring by modifying other clauses, the Company shall confirm and measure the restructured creditor’s rights in accordancewith “V.11. Financial Instruments” in this note.
In the event that multiple assets are utilized to repay debts or a combination is employed to restructure debts, the Company will first confirmand measure the transferred financial assets and restructured claims in accordance with “V. 11. Financial Instruments” outlined in this note.Subsequently, the fair value ratio of each asset, excluding the transferred financial assets, shall be allocated to the net amount after deductingthe confirmed amount of the transferred financial assets and restructured claims from the fair value of the relinquished claims. Based on thisallocation, the cost of each asset shall be determined separately using the aforementioned method. The difference between the fair value andthe book value of the relinquished claims shall be recognized in the current profit and loss.
(2) The Company acts as the debtor:
The Company derecognizes a debt once its current obligations are discharged.
If debt reorganization is executed by repaying debts with assets, the Company will derecognize the relevant assets and debts repaid when theymeet the conditions for derecognition. The difference between the book value of the debts repaid and the book value of the transferred assetsshall be included in the current profit and loss.
If debt restructuring involves converting debt into equity instruments, the Company will derecognize the debt when the repaid debt meets theconditions for derecognition. When initially recognizing an equity instrument, the Company measures it based on the fair value of the equityinstrument. If the fair value of the equity instrument cannot be reliably measured, it is measured based on the fair value of the debt repaid. Thedifference between the book value of the debt repaid and the recognized amount of the equity instrument shall be included in the current profitand loss.
In cases where Debt is conducted by modifying other terms, the Company shall recognize and measure the restructured claims according tothe guidelines outlined in “V. 11. Financial Instruments” of this note.
In instances where multiple assets are utilized to repay debts or a combination is employed to reorganize debts, the Company shall confirmand measure equity instruments and restructured debts using the aforementioned methods. The book value of the debts repaid shall be the sumof the book value of the transferred assets and the confirmed amount of equity instruments and restructured debts. Any difference between thissum and the profit and loss shall be included in the current profit and loss.
4. Segmental reporting
The Company determines the operating segments based on the internal organizational structure, management requirements and internalreporting system, and determines the reporting segments based on the operating segments and discloses the information of the segments.
Operating segments refer to components within the Company that simultaneously meet the following conditions:
(1) The component can generate income and incur expenses in daily activities.
(2) The Company’s management can regularly evaluate the operating results of this component to decide on resource allocation and
evaluate its performance.
(3) The Company can obtain relevant accounting information such as the financial status, operating results, and cash flow of this
component. If two or more operating segments have similar economic characteristics and meet certain conditions, they may be mergedinto one operating segment.
43. Significant Accounting Policy and Accounting Estimate Change
(1) Changes in significant accounting policies
□ Applicable √ Not applicable
(2) Changes in major accounting estimates
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of first implementation year as a result of first implementation
of new accounting standards from 2024
□ Applicable √ Not applicable
44. Others
None
VI. Taxation
1. Main Tax Categories and Tax Rates
| Tax category | Taxation basis | Tax rate |
Added value tax
| Added value tax | Calculate the substituted money on VAT on the basis of the income from selling goods and taxable services according to the tax law. After deduction of the withholdings on VAT allowed to deduct in the current period, the balance is the VAT payable | 13%, 9%, 6%, 3%, 1%, 0% |
Consumption tax
| Consumption tax | N/A | N/A |
Urban maintenance andconstruction tax
| Urban maintenance and construction tax | Actual paid value added tax (including the exemption part) and consumption tax | 7%, 5% |
Corporate income tax
| Corporate income tax | Levied by income tax payable | 30%, 25%, 20%, 16.5%, 15% |
Education surcharge
| Education surcharge | Actual paid value added tax (including the exemption part) and consumption tax | 3% |
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
| Name of taxpayer | Income tax rate |
Winner Medical, Winner Medical (Huanggang), Winner Medical (Tianmen), Winner Medical (Jingmen),Winner Medical (Chongyang), Winner Medical (Jiayu), Qianhai Purcotton, Winner Medical (Wuhan),Longterm Medical, Winner Guilin, Winner Medical (Hunan)
| Winner Medical, Winner Medical (Huanggang), Winner Medical (Tianmen), Winner Medical (Jingmen), Winner Medical (Chongyang), Winner Medical (Jiayu), Qianhai Purcotton, Winner Medical (Wuhan), Longterm Medical, Winner Guilin, Winner Medical (Hunan) | 15% |
Winner Medical (Hong Kong), Pan-China (H.K.), Hong Kong Purcotton
| Winner Medical (Hong Kong), Pan-China (H.K.), Hong Kong Purcotton | 16.50% |
Hangzhou Shengyi, Xi’an Longtemu, Deqing Longterm, Ruian Medical Device
| Hangzhou Shengyi, Xi’an Longtemu, Deqing Longterm, Ruian Medical Device | 20% |
Mexico Longtai
| Mexico Longtai | 30% |
2. Tax Preference
(1) On December 23, 2021, according to the Notice on Publicizing the List of First Batch of High-tech Enterprises to be Identified in
Shenzhen in 2021 issued by the Leading Group Office of National High-tech Enterprise Accreditation Administration, the Companypassed the High-tech Enterprise Qualification Reexamination (Certificate No.: GR202144202494). From 2021 to 2023, the corporateincome tax can be paid at a preferential tax rate of 15.00%. The application for review has been submitted in the current period and isin the review stage.
(2) According to the Notice on Publicizing the List of the Second Batch of High-tech Enterprises to be Identified in Hubei Province in
2019, Winner Medical (Huanggang) was identified as the second batch of high-tech enterprises with the certificate number ofGR201942002414, and passed the qualification review of high-tech enterprises in 2022. Winner Medical (Huanggang) is eligible topay corporate income tax at a preferential rate of 15.00% from 2022 to 2024.
(3) Qianhai Purcotton was established on July 21, 2015, with its domicile located in Shenzhen Qianhai Shenzhen-Hong Kong Cooperation
Zone. According to the Notice of Enterprise Income Tax Preferential Policies and Preferential Directory in Shenzhen QianhaiShenzhen-Hong Kong Modern Service Industry Cooperation Zone of Hengqin New Fujian Pingtan Comprehensive Experimental Area[2021] No. 30) issued by the Ministry of Finance and State Taxation Administration, Qianhai Purcotton pays its corporate income taxat the tax rate of 15.00%.
(4) According to the Notice on Publicizing the List of Fourth Batch of High-tech Enterprises to be Identified in Hubei Province in 2021
issued by the Leading Group Office of National High-tech Enterprise Accreditation Administration on December 23, 2021, WinnerMedical (Jingmen) obtained the High-tech Enterprise Certificate (Certificate No.: GR202142004475) on December 03, 2021. From2021 to 2023, the corporate income tax can be paid at a preferential tax rate of 15.00%. The application for review has been submittedin the current period and is in the review stage.
(5) According to the Notice on Publicizing the List of Fifth Batch of High-tech Enterprises to be Identified in Hubei Province in 2021
issued by the Leading Group Office of National High-tech Enterprise Accreditation Administration on December 23, 2021, WinnerMedical (Jiayu) obtained the High-tech Enterprise Certificate (Certificate No.: GR202142005582) on December 17, 2021. From 2021to 2023, the corporate income tax can be paid at a preferential tax rate of 15.00%. The application for review has been submitted inthe current period and is in the review stage.
(6) According to the Notice on Publicizing the List of Second Batch of High-tech Enterprises to be Identified in Hubei Province in 2021
issued on December 15, 2021, Winner Medical (Chongyang) and Winner Medical (Tianmen) obtained the High-tech EnterpriseCertificates (Certificate No.: GR202142000579, GR202142002367) on November 15, 2021. From 2021 to 2023, the corporate incometax can be paid at a preferential tax rate of 15.00%. The application for review has been submitted in the current period and is in thereview stage.
(7) According to the Notice on Publicizing the List of Second Batch of High-tech Enterprises to be Identified in Hubei Province in 2022
issued on November 9, 2022, Winner Medical (Wuhan) obtained the High-tech Enterprise Certificate (Certificate No.:
GR202242002319) on November 9, 2022. From 2022 to 2024, the corporate income tax can be paid at a preferential tax rate of 15.00%.
(8) Zhejiang Longterm was initially recognized as a high-tech enterprise on November 13, 2017. It subsequently obtained an updated
high-tech enterprise qualification certificate on December 8, 2023, with the certificate number GR202345000323. Pay corporateincome tax at a preferential tax rate of 15% with a validity period of three years.
(9) Hangzhou Shengyi, Xi’an Longtemu, Deqing Longterm are all small enterprises with small profits. The part with annual taxable
income not exceeding RMB 1 million shall be reduced by 12.5% and included into the taxable income, and the corporate income taxshall be paid at the tax rate of 20%; The part with annual taxable income exceeding RMB 1 million but not exceeding RMB 3 millionshall be reduced by 25% and included into the taxable income, and corporate income tax shall be paid at the rate of 20%.
(10) Winner Medical (Hunan) was recognized as a high-tech enterprise in 2010 to pay corporate income tax at a preferential tax rate of
15%. It obtained an updated high-tech enterprise qualification certificate on December 2, 2019 with a validity period of three yearsuntil December 1, 2022, passed the high-tech enterprise certification for the third time in 2022 to obtain a certificate with number ofGR202243004478 and expiration date of December 12, 2025.
(11) Ruian Medical Device is a small enterprise with small profits. The part with annual taxable income not exceeding RMB 1 million
shall be reduced by 12.5% and included into the taxable income, and the corporate income tax shall be paid at the tax rate of 20%;The part with annual taxable income exceeding RMB 1 million but not exceeding RMB 3 million shall be reduced by 25% andincluded into the taxable income, and corporate income tax shall be paid at the rate of 20%. At present, the annual taxable income ofRuian Medical Device is less than RMB 1 million, and the actual tax rate is 2.5%.
(12) On December 4, 2023, Guilin Latex passed the high-tech enterprise certification to obtain the high-tech enterprise certificate with
number of GR202345000323 and validity period of three years. According to the relevant preferential policies of China for high-techenterprises, qualified high-tech enterprises shall be subject to a corporate income tax at a preferential tax rate of 15% for three yearsfrom the year of recognition.
3. Others
None
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and cash equivalents
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Cash on hand
| Cash on hand | 120,879.58 | 76,471.98 |
Bank deposit
| Bank deposit | 3,892,515,173.35 | 4,676,600,881.85 |
Other cash and cash equivalents
| Other cash and cash equivalents | 25,036,132.86 | 29,454,717.44 |
Total
| Total | 3,917,672,185.79 | 4,706,132,071.27 |
Where: total amount deposited abroad
| Where: total amount deposited abroad | 19,211,574.51 | 6,765,888.80 |
Other description
The breakdown of cash and cash equivalents that are restricted in use due to mortgages, pledges, or freezes—along with funds restricted inwithdrawal due to centralized management and those placed outside China with limitations on repatriation—is as follows:
Unit: yuan
| Item | Closing Balance | Closing balance of the previous year |
Deposit for bank acceptance bill* 1
| Deposit for bank acceptance bill* 1 | 12,069,029.85 | 10,935,300.00 |
Letter of Credit deposit* 2
| Letter of Credit deposit* 2 | 100,000.00 | 100,000.00 |
Performance bond* 3
| Performance bond* 3 | 5,358,039.51 | 5,077,060.94 |
Letter of Guarantee bond* 4
| Letter of Guarantee bond* 4 | 6,600,000.00 |
Balance of other restricted cash and cash equivalents*5
| Balance of other restricted cash and cash equivalents *5 | 6,145,870.47 | 6,078,927.88 |
Total
| Total | 23,672,939.83 | 28,791,288.82 |
*1 Deposit for bank acceptance bill refers to the deposit deposited by Zhejiang Longterm to apply for bank acceptance bill.
*2Letter of Credit deposit is the deposit made by Winner Medical (Tianmen) for international and domestic Letters of Credit.
*3 The performance bond refers to the bond deposited by Zhejiang Longterm for automatic transfer of electricity charges; the bond depositedby Winner Medical (Hong Kong) for bidding transactions with hospitals.
*4 Represents the deposit made by Winner Medical (Hunan) for signing the demand guarantee.
*5 The balance of other restricted cash and cash equivalents refers to the receipt deposit of Winner Medical (Shenzhen); the balance of specialdeposit accounts for restricted non-budget units opened by Shenzhen Purecotton in accordance with the regulations of prepaid card issuanceformulated by the Ministry of Commerce, and product deposit for the APP and mini program.
2. Tradable Financial Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Financial assets measured at fair value of which the changes areincluded in current profit and loss
| Financial assets measured at fair value of which the changes are included in current profit and loss | 2,524,636,253.55 | 2,850,058,540.71 |
Including:
| Including: |
Bank financial products
| Bank financial products | 1,389,316,876.93 | 1,735,249,266.74 |
Trust products
| Trust products | 1,135,319,376.62 | 1,114,809,273.97 |
Including:
| Including: |
Total
| Total | 2,524,636,253.55 | 2,850,058,540.71 |
Other description:
3. Derivative Financial Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description:
4. Notes Receivable
(1) Classified presentation of notes receivable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Bank acceptance bill
| Bank acceptance bill | 13,038,762.74 | 42,963,076.53 |
Total
| Total | 13,038,762.74 | 42,963,076.53 |
(2) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Including:
| Including: |
Provision for bad debts on promissory notes if based on a general model of expected credit losses:
□ Applicable √ Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in the current period:
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write-off | Others | |||
Where the amount of bad debt provision recovered or reversed is important:
□ Applicable √ Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Unit: yuan
| Item | Pledged amount at the end of the period |
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet on the balance sheet date
Unit: yuan
| Item | Amount with recognition terminated at the end of the period | Amount with recognition not terminated at the end of the period |
Bank acceptance bill
| Bank acceptance bill | 69,732,163.99 | 9,781,329.43 |
Total
| Total | 69,732,163.99 | 9,781,329.43 |
(6) Notes receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Write-off of important notes receivable:
Unit: yuan
| Unit name | Nature of notes receivable | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off notes receivable:
5. Accounts Receivable
(1) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 971,129,613.15 | 802,426,859.44 |
1~2 years
| 1~2 years | 18,939,037.78 | 12,583,559.62 |
2~3 years
| 2~3 years | 8,955,263.34 | 4,051,224.68 |
More than 3 years
| More than 3 years | 1,603,350.37 | 2,899,121.73 |
3~4 years
| 3~4 years | 582,703.84 | 1,601,949.62 |
4~5 years
| 4~5 years | 111,274.96 | 292,384.46 |
More than 5 years
| More than 5 years | 909,371.57 | 1,004,787.65 |
Total
| Total | 1,000,627,264.64 | 821,960,765.47 |
(2) Classified disclosure according to bad debt accrual method
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Accountsreceivable ofprovisionfor baddebt bysingleitem
| Accounts receivable of provision for bad debt by single item | 9,198,401.53 | 0.92% | 9,198,401.53 | 100.00% | 0.00 | 9,715,810.58 | 1.18% | 9,715,810.58 | 100.00% | 0.00 |
Including:
Including:
Accountsreceivable ofprovisionfor baddebt bycombination
| Accounts receivable of provision for bad debt by combination | 991,428,863.11 | 99.08% | 52,197,666.42 | 5.26% | 939,231,196.69 | 812,244,954.89 | 98.82% | 43,642,665.29 | 5.37% | 768,602,289.60 |
Including:
Including:
Aginganalysismethod
| Aging analysis method | 991,428,863.11 | 99.08% | 52,197,666.42 | 5.26% | 939,231,196.69 | 812,244,954.89 | 98.82% | 43,642,665.29 | 5.37% | 768,602,289.60 |
Total
| Total | 1,000,627,264.64 | 100.00% | 61,396,067.95 | 6.14% | 939,231,196.69 | 821,960,765.47 | 100.00% | 53,358,475.87 | 6.49% | 768,602,289.60 |
Category name of provision for bad debts by single item
Unit: yuan
| Name | Balance at the beginning of the period | Closing Balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Better LifeCommercial ChainShare Co., Ltd.
| Better Life Commercial Chain Share Co., Ltd. | 6,387,334.23 | 6,387,334.23 | 6,387,334.23 | 6,387,334.23 | 100.00% | The customer has declared bankruptcy, and the payment for the goods is unlikely to be recovered |
Others
| Others | 3,328,476.35 | 3,328,476.35 | 2,811,067.30 | 2,811,067.30 | 100.00% | Expected to be irrecoverable |
Total
| Total | 9,715,810.58 | 9,715,810.58 | 9,198,401.53 | 9,198,401.53 |
Category name of provision for bad debts by combination: aging combination
Unit: yuan
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 971,129,613.15 | 48,556,480.64 | 5.00% |
1~2 years
| 1~2 years | 16,286,637.78 | 1,628,663.78 | 10.00% |
2~3 years
| 2~3 years | 2,409,261.81 | 722,778.54 | 30.00% |
3~4 years
| 3~4 years | 582,703.84 | 291,351.92 | 50.00% |
4~5 years
| 4~5 years | 111,274.96 | 89,019.97 | 80.00% |
More than 5 years
| More than 5 years | 909,371.57 | 909,371.57 | 100.00% |
Total
| Total | 991,428,863.11 | 52,197,666.42 |
Description of the basis for determining the combination:
Recognition criteria and description of bad debts by combination: On June 30, 2024, the Company reviewed the appropriateness of the provisionfor bad debts of receivables in the previous year according to the historical bad debt loss, and believed that the default probability has a strongcorrelation with the aging of accounts, and the account age is still a sign of whether the credit risk of the company’s receivables has significantlyincreased. Therefore, the Company’s credit risk loss on June 30, 2024 is estimated based on the aging of accounts and estimated at the originalloss ratio.
If the provision for bad debts on accounts receivable relies on a general model of expected credit losses:
□ Applicable √ Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in the current period:
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write-off | Others | |||
Provision for bad debtof accounts receivable
| Provision for bad debt of accounts receivable | 53,358,475.87 | 11,881,554.39 | 3,845,885.75 | 1,923.44 | 61,396,067.95 |
Total
| Total | 53,358,475.87 | 11,881,554.39 | 3,845,885.75 | 1,923.44 | 61,396,067.95 |
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
(4) Accounts receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Write-off of important accounts receivable:
Unit: yuan
| Unit name | Nature of accounts receivable | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off accounts receivable:
(5) Accounts receivable with Top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Percentage of total closing balance of accounts receivable and contract assets | Ending balance of bad debt provision for accounts receivable and impairment provision for contract assets |
First
| First | 160,117,934.18 | 160,117,934.18 | 16.00% | 8,005,896.71 |
Second
| Second | 40,841,194.94 | 40,841,194.94 | 4.08% | 2,042,059.75 |
Third
| Third | 31,202,311.27 | 31,202,311.27 | 3.12% | 1,560,115.56 |
Fourth
| Fourth | 28,893,796.10 | 28,893,796.10 | 2.89% | 1,444,689.81 |
Fifth
| Fifth | 17,147,230.77 | 17,147,230.77 | 1.71% | 857,361.54 |
Total
| Total | 278,202,467.26 | 278,202,467.26 | 27.80% | 13,910,123.37 |
6. Contract Assets
(1) Contract assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value |
(2) Amount and reasons for significant changes in book value during the reporting period
Unit: yuan
| Item | Amount of change | Reason for change |
(3) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Including:
| Including: |
Category numbers of provision for bad debts by combination: 0
Provision for bad debts based on the general expected credit loss (ECL) model
□ Applicable √ Not applicable
(4) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Item | Accrual in the current period | Recovered or reversed during the period | Write off/verification in the current period | Reasons |
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description
(5) Actual contract assets written off during the period
Unit: yuan
| Item | Amount written off |
Write-off of important contract assets:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Notes on the write-off of contract assets:
Other description:
7. Amounts Receivable Financing
(1) Presentation of receivables financing classifications
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Notes receivable - bank acceptance bill
| Notes receivable - bank acceptance bill | 36,356,429.51 | 29,348,618.44 |
Total
| Total | 36,356,429.51 | 29,348,618.44 |
(2) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Including:
| Including: |
Provision for bad debts based on the general expected credit loss (ECL) model
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (without credit impairment) | Expected credit losses over the entire duration (with credit impairment) | Total |
Balance on January 1, 2024 in the current period
| Balance on January 1, 2024 in the current period |
Basis for division of each stage and provision ratio for bad debts
Description of significant changes in the book balance of accounts receivable financing, particularly those reflecting adjustments in lossprovisions in the current period:
(3) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
(4) Receivables financing pledged by the Company at the end of the period
Unit: yuan
| Item | Pledged amount at the end of the period |
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not expired yet on the balance sheet date
Unit: yuan
| Item | Amount with recognition terminated at the end of the period | Amount with recognition not terminated at the end of the period |
(6) Receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Important write-offs of receivables financing
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off:
(7) Changes in the increase and decrease of receivables financing and changes in the fair value in the current period
(8) Other description
8. Other Receivables
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other Receivables
| Other Receivables | 225,809,699.10 | 218,913,405.18 |
Total
| Total | 225,809,699.10 | 218,913,405.18 |
(1) Interest receivable
1) Classification of interest receivable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
2) Important overdue interest
Unit: yuan
| Borrower | Closing Balance | Overdue time | Overdue reason | Whether there is impairment and its judgment basis |
Other description:
3) Classified disclosure according to bad debt accrual method
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
5) Interest receivable actually written off during the period.
Unit: yuan
| Item | Amount written off |
Write-off of important interest receivable:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off:
Other description:
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
| Project (or invested unit) | Closing Balance | Balance at the beginning of the period |
2) Important dividends receivable with the aging more than 1 year
Unit: yuan
| Project (or invested unit) | Closing Balance | Aging | Reason for non-recovery | Whether there is impairment and its judgment basis |
3) Classified disclosure according to bad debt accrual method
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
5) Actual write-off of dividends receivable for the period
Unit: yuan
| Item | Amount written off |
Important write-off of dividends receivable:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off:
Other description:
(3) Other Receivables
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Compensation for investment and construction projectof Winner Medical (Heyuan)
| Compensation for investment and construction project of Winner Medical (Heyuan) | 220,155,320.00 | 220,155,320.00 |
Margin and deposit
| Margin and deposit | 105,391,132.51 | 101,019,054.40 |
Employee pretty cash
| Employee pretty cash | 4,299,689.08 | 3,453,440.82 |
Others
| Others | 15,130,535.28 | 13,192,323.37 |
Total
| Total | 344,976,676.87 | 337,820,138.59 |
2) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 36,368,735.01 | 37,682,315.11 |
1~2 years
| 1~2 years | 11,089,240.57 | 17,911,211.16 |
2~3 years
| 2~3 years | 13,500,676.39 | 13,979,257.63 |
More than 3 years
| More than 3 years | 284,018,024.90 | 268,247,354.69 |
3~4 years
| 3~4 years | 17,455,107.99 | 17,098,300.38 |
4~5 years
| 4~5 years | 227,860,059.30 | 228,654,779.32 |
More than 5 years
| More than 5 years | 38,702,857.61 | 22,494,274.99 |
Total
| Total | 344,976,676.87 | 337,820,138.59 |
3) Classified disclosure according to bad debt accrual method
√Applicable □ Not applicable
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Provision forbad debt bysingle item
| Provision for bad debt by single item | 220,391,165.90 | 63.89% | 110,313,505.90 | 50.05% | 110,077,660.00 | 220,391,165.90 | 65.24% | 110,313,505.90 | 50.05% | 110,077,660.00 |
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
Including:
Provision forbad debt bycombination
| Provision for bad debt by combination | 124,585,510.97 | 36.11% | 8,853,471.87 | 7.11% | 115,732,039.10 | 117,428,972.69 | 34.76% | 8,593,227.51 | 7.32% | 108,835,745.18 |
Including:
Including:
Agingcombination
| Aging combination | 19,196,378.46 | 5.56% | 3,584,015.24 | 18.67% | 15,612,363.22 | 16,845,623.22 | 4.99% | 3,565,039.11 | 21.16% | 13,280,584.11 |
Margin /depositcombination
| Margin / deposit combination | 105,389,132.51 | 30.55% | 5,269,456.63 | 5.00% | 100,119,675.88 | 100,583,349.47 | 29.77% | 5,028,188.40 | 5.00% | 95,555,161.07 |
Total
| Total | 344,976,676.87 | 100.00% | 119,166,977.77 | 34.54% | 225,809,699.10 | 337,820,138.59 | 100.00% | 118,906,733.41 | 35.20% | 218,913,405.18 |
Category name of provision for bad debts by single item
Unit: yuan
| Name | Balance at the beginning of the period | Closing Balance | ||||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | Accruing proportion | Reasons for provision | |
Zijin CountyPeople’sGovernment
| Zijin County People’s Government | 220,155,320.00 | 110,077,660.00 | 220,155,320.00 | 110,077,660.00 | 50.00% | Government receivables with an accounting age of 4--5 years. |
Others
| Others | 235,845.90 | 235,845.90 | 235,845.90 | 235,845.90 | 100.00% | Expected to be irrecoverable |
Total
| Total | 220,391,165.90 | 110,313,505.90 | 220,391,165.90 | 110,313,505.90 |
Category name of provision for bad debts by combination: aging combination
Unit: yuan
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 13,826,089.75 | 691,304.47 | 5.00% |
1~2 years
| 1~2 years | 70,374.48 | 7,037.45 | 10.00% |
2~3 years
| 2~3 years | 9,294.43 | 2,788.33 | 30.00% |
3~4 years
| 3~4 years | 4,807,469.63 | 2,403,734.82 | 50.00% |
4~5 years
| 4~5 years | 20,000.00 | 16,000.00 | 80.00% |
More than 5 years
| More than 5 years | 463,150.17 | 463,150.17 | 100.00% |
Total
| Total | 19,196,378.46 | 3,584,015.24 |
Description of the basis for determining the combination:
Category name of provision for bad debts by combination: Margin / deposit combination
Unit: yuan
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Margin deposit
| Margin deposit | 105,389,132.51 | 5,269,456.63 | 5.00% |
Total
| Total | 105,389,132.51 | 5,269,456.63 |
Description of the basis for determining the combination:
Provision for bad debts based on the general expected credit loss (ECL) model:
Unit: yuan
| Stage 1 | Stage 2 | Stage 3 |
Provision for bad debt
| Provision for bad debt | Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit losses over the entire duration (credit impairment has occurred) | Total |
Balance on January 1, 2024
| Balance on January 1, 2024 | 107,166,103.87 | 11,740,629.54 | 118,906,733.41 |
Balance on January 1, 2024in the current period
| Balance on January 1, 2024 in the current period |
Accrual in the current period
| Accrual in the current period | 824,433.84 | 824,433.84 |
Reversal in the currentperiod
| Reversal in the current period | 564,285.06 | 564,285.06 |
Other changes
| Other changes | 95.58 | 95.58 |
Balance on June 30, 2024
| Balance on June 30, 2024 | 107,426,348.23 | 11,740,629.54 | 119,166,977.77 |
Basis for division of each stage and provision ratio for bad debts
Changes in book balance with significant changes in the current period of provision for loss
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in the current period:
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Others | |||
Provision for baddebts of otherreceivables
| Provision for bad debts of other receivables | 118,906,733.41 | 824,433.84 | 564,285.06 | 95.58 | 119,166,977.77 |
Total
| Total | 118,906,733.41 | 824,433.84 | 564,285.06 | 95.58 | 119,166,977.77 |
Where the amount of bad debt provision reversed or recovered is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
5) Other receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Write-off of important other receivables:
Unit: yuan
| Unit name | Nature of other receivables | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off of other receivables
6) Other receivables with Top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Closing Balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
First
| First | Receivables related to Heyuan project | 220,155,320.00 | 4-5 years | 63.82% | 110,077,660.00 |
Second
| Second | Employee pretty cash | 2,431,586.61 | Within 1 year | 0.70% | 121,579.33 |
Third
| Third | Margin and deposit | 2,311,115.80 | 3-4 years | 0.67% | 121,579.33 |
Fourth
| Fourth | Others | 2,000,000.00 | 3-4 years | 0.58% | 1,000,000.00 |
Fifth
| Fifth | Margin and deposit | 1,192,033.54 | Within 1 year | 0.35% | 59,601.68 |
Total
| Total | 228,090,055.95 | 66.12% | 111,380,420.34 |
7) Recorded under other receivables due to centralized fund management
Unit: yuan
Other description:
9. Advances to Suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
| Aging | Closing Balance | Balance at the beginning of the period | ||
| Amount | Proportion | Amount | Proportion | |
Within 1 year
| Within 1 year | 111,003,138.27 | 98.25% | 119,158,386.43 | 97.45% |
1~2 years
| 1~2 years | 1,725,035.26 | 1.53% | 2,613,992.18 | 2.14% |
2~3 years
| 2~3 years | 255,600.91 | 0.23% | 509,364.14 | 0.42% |
Total
| Total | 112,983,774.44 | 122,281,742.75 |
Reasons for non-timely settlement of important advances from customers with the aging more than 1 year:
(2) Advances to suppliers with Top 5 ending balances by prepayment object
| Advance object | Closing Balance (Yuan) | Proportion in total ending balance of advances (%) |
First
| First | 21,982,130.78 | 19.46% |
Second
| Second | 14,043,777.36 | 12.43% |
Third
| Third | 7,402,815.74 | 6.55% |
Fourth
| Fourth | 2,830,188.68 | 2.50% |
Fifth
| Fifth | 2,389,907.32 | 2.12% |
Total
| Total | 48,648,819.88 | 43.06% |
Other description:
10. Inventory
Does the Company need to follow the disclosure requirements of real estate industry
No
(1) Inventory classification
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Inventory falling price reserves or provision for impairment of contract performance costs | Book value | Book balance | Inventory falling price reserves or provision for impairment of contract performance costs | Book value | |
Rawmaterials
| Raw materials | 289,841,593.34 | 16,287,848.00 | 273,553,745.34 | 257,540,786.57 | 13,590,764.92 | 243,950,021.65 |
Work inprocess
| Work in process | 195,152,890.23 | 32,664,343.02 | 162,488,547.21 | 202,621,436.49 | 36,094,235.16 | 166,527,201.33 |
Finishedgoods
| Finished goods | 1,162,623,665.30 | 202,899,079.32 | 959,724,585.98 | 1,187,727,556.66 | 205,259,954.93 | 982,467,601.73 |
Goods intransit
| Goods in transit | 39,872,021.84 | 0.00 | 39,872,021.84 | 24,716,158.02 | 24,716,158.02 |
Low-valueconsumables
| Low-value consumables | 19,639,739.16 | 2,095,923.93 | 17,543,815.23 | 18,264,295.81 | 1,598,990.58 | 16,665,305.23 |
Total
| Total | 1,707,129,909.87 | 253,947,194.27 | 1,453,182,715.60 | 1,690,870,233.55 | 256,543,945.59 | 1,434,326,287.96 |
(2) Data resources recognized as inventory
Unit: yuan
| Item | Inventory of outsourced data resources | Inventory of self-processed data resources | Inventory of data resources otherwise acquired | Total |
(3) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
| Item | Balance at the beginning of the period | Amount increased in the current period | Amount decreased in the current period | Closing Balance | ||
| Accrual | Others | Reversal or write-back | Others | |||
Raw materials
| Raw materials | 13,590,764.92 | 9,895,273.94 | 7,198,190.86 | 16,287,848.00 |
Work inprocess
| Work in process | 36,094,235.16 | 2,252,175.07 | 5,682,067.21 | 32,664,343.02 |
Finished goods
| Finished goods | 205,259,954.93 | 78,606,775.59 | 80,967,651.20 | 202,899,079.32 |
Low-valueconsumables
| Low-value consumables | 1,598,990.58 | 641,804.10 | 144,870.75 | 2,095,923.93 |
Total
| Total | 256,543,945.59 | 91,396,028.70 | 93,992,780.02 | 253,947,194.27 |
Inventory impairment provision by portfolio
Unit: yuan
| Combination name | The end of the period | The beginning of the period | ||||
| Closing Balance | Provision for depreciation | Accruing proportion for depreciation provision | Balance at the beginning of the period | Provision for depreciation | Accruing proportion for depreciation provision | |
The accounting standard for calculating the provision for inventory impairment by portfolio
(4) Description of ending balance of inventory containing the capitalized amount of borrowing costs
(5) Description of current amortization amount of contract performance cost
11. Assets Held for Sales
Unit: yuan
| Item | Ending book balance | Provision for impairment | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
Other description
12. Non-Current Assets Due within a Year
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Long-term receives due within one year
| Long-term receives due within one year | 4,500,791.23 | 4,379,308.17 |
Total
| Total | 4,500,791.23 | 4,379,308.17 |
(1) Non-current assets due within a year
□ Applicable √ Not applicable
(2) Other non-current assets due within a year
□ Applicable √ Not applicable
13. Other Current Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Return cost receivable
| Return cost receivable | 865,458.41 | 779,058.41 |
Interest on fixed deposit / large deposit
| Interest on fixed deposit / large deposit | 82,451,310.24 | 97,786,429.67 |
VAT input tax to be deducted / uncertified input tax
| VAT input tax to be deducted / uncertified input tax | 52,349,403.88 | 51,890,783.52 |
Prepaid corporate income tax
| Prepaid corporate income tax | 31,541,302.72 | 38,171,660.89 |
Unamortized expenses
| Unamortized expenses | 15,419,863.48 | 10,150,883.88 |
Pledged certificate of deposit
| Pledged certificate of deposit | 180,000,000.00 |
Others
| Others | 2,866.99 | 74,836.27 |
Total
| Total | 182,630,205.72 | 378,853,652.64 |
Other description:
14. Debt Investment
(1) Debt investment
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Changes in the provision for impairment of debt investments during the period
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
(2) Major debt investments at the end of the period
Unit: yuan
| Debt item | Closing Balance | Balance at the beginning of the period | ||||||||
| Book value | Coupon rate | Actual rate | Maturity date | Overdue principal | Book value | Coupon rate | Actual rate | Maturity date | Overdue principal | |
(3) Provision for impairment
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit losses over the entire duration (credit impairment has occurred) |
Balance on January 1, 2024 in the current period
| Balance on January 1, 2024 in the current period |
Basis for division of each stage and provision ratio for bad debts
(4) Debt investments actually written off during the period
Unit: yuan
| Item | Amount written off |
Significant write-offs of debt investments
Debt investment write-offs:
Changes in book balance with significant changes in the current period of provision for loss
□ Applicable √ Not applicable
Other description:
15. Other Debt Investments
(1) Other debt investments
Unit: yuan
| Item | Balance at the beginning of the period | Accrued interest | Interest adjustments | Fair value change in the current period | Closing Balance | Cost | Accumulated fair value change | Accumulated impairment provision recognized in other comprehensive income | Remark |
Changes in the provision for impairment of other debt investments during the period
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
(2) Other important debt investments at the end of the period
Unit: yuan
| Other debt item | Closing Balance | Balance at the beginning of the period | ||||||||
| Book value | Coupon rate | Actual rate | Maturity date | Overdue principal | Book value | Coupon rate | Actual rate | Maturity date | Overdue principal | |
(3) Provision for impairment
Unit: yuan
| Stage 1 | Stage 2 | Stage 3 |
Provision for bad debt
| Provision for bad debt | Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit losses over the entire duration (credit impairment has occurred) | Total |
Balance on January 1, 2024 in the current period
| Balance on January 1, 2024 in the current period |
Basis for division of each stage and provision ratio for bad debts
(4) Other debt investment actually written off at the current period
Unit: yuan
| Item | Amount written off |
Important write-offs of other debt investments
Changes in book balance with significant changes in the current period of provision for loss
□ Applicable √ Not applicable
Other description:
16. Other equity instrument investments
Unit: yuan
| Project name | Balance at the beginning of the period | Gain recognized in other comprehensive income for the period | Loss included in other comprehensive income for the period | Accumulated gains included in other comprehensive income at the end of the period | Loss accumulated in other comprehensive income at the end of the period | Dividend income recognized during the period | Closing Balance | Reasons for designating to be measured at fair value and its changes are recorded into other comprehensive income |
Derecognition occurred in the current period
Unit: yuan
| Project name | Accumulated gains transferred to retained earnings | Cumulative losses transferred to retained earnings | Reasons for termination of confirmation |
Itemized disclosure of the current non-trading equity instrument investment
Unit: yuan
| Project name | Recognized dividend income | Accumulated gains | Accumulated losses | Amount of other comprehensive income transferred into retained income | Reasons for designating to be measured at fair value and its changes are recorded into other comprehensive income | Reasons for other comprehensive income transferring into retained income |
Other description:
17. Long-Term Receivables
(1) Long-term receivables
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | Discount rate range | ||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | ||
Finance leases
| Finance leases | 36,657,910.53 | 36,657,910.53 | 35,689,264.21 | 35,689,264.21 |
Including:
Unrealizedfinancinggains
| Including: Unrealized financing gains | 8,230,677.66 | 8,230,677.66 | 9,320,807.04 | 9,320,807.04 |
Total
| Total | 36,657,910.53 | 36,657,910.53 | 35,689,264.21 | 35,689,264.21 |
(2) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Including:
| Including: |
Provision for bad debts based on the general expected credit loss (ECL) model
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit losses over the entire duration (credit impairment has occurred) |
Balance on January 1, 2024 in the current period
| Balance on January 1, 2024 in the current period |
Basis for division of each stage and provision ratio for bad debts
(3) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision reversed or recovered is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
(4) Long-term receivables actually written off during the period
Unit: yuan
| Item | Amount written off |
Significant long-term receivables written off:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Notes on the write-off of long-term receivables:
18. Long-Term Equity Investment
Unit: yuan
| Increase or decrease in the current period |
Investedunit
| Invested unit | Beginning balance (book value) | Opening balance of provision for impairment | Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Others | Ending balance (book value) | Ending balance of impairment provision |
I. Cooperative enterprise
| I. Cooperative enterprise |
II. Joint venture
| II. Joint venture |
ChengduWinner
| Chengdu Winner | 20,377,034.07 | 115,196.26 | 20,492,230.33 |
HubeiXianchuangTechnology Co.,Ltd.
| Hubei Xianchuang Technology Co., Ltd. | 502,210.13 | 502,210.13 |
SCompany
| S Company | 428,074,000.00 | -7,784,410.02 | -27,725.77 | 420,261,864.21 |
Subtotal
| Subtotal | 20,879,244.20 | 428,074,000.00 | -7,669,213.76 | -27,725.77 | 441,256,304.67 |
Total
| Total | 20,879,244.20 | 428,074,000.00 | -7,669,213.76 | -27,725.77 | 441,256,304.67 |
The recoverable amount is determined according to the higher of the net amount of the assets fair value subtracted by the disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the data used in impairment testing in prior years orexternal information
Reasons for the variance between the information utilized in the Company’s impairment testing in prior years and the actual circumstances ofthe current year
Other description:
19. Other Non-Current Financial Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Equity instrument investments
| Equity instrument investments | 70,000,000.00 | 70,000,000.00 |
Total
| Total | 70,000,000.00 | 70,000,000.00 |
Other description:
20. Investment Real Estates
(1) Investment real estates using cost measurement mode
√Applicable □ Not applicable
Unit: yuan
| Item | Houses and buildings | Land use right | Construction in Progress | Total |
I. Original book value
| I. Original book value |
1. Balance at the beginning of the period
| 1. Balance at the beginning of the period | 10,739,083.13 | 10,739,083.13 |
2. Amount increased in the current period
| 2. Amount increased in the current period |
(1) Outsourcing
| (1) Outsourcing |
(2) Transfer from inventory / fixed assets /
construction in progress
| (2) Transfer from inventory / fixed assets / construction in progress |
(3) Increase by business combination
| (3) Increase by business combination |
3. Amount decreased in the current period
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
(2) Other roll-out
| (2) Other roll-out |
4. Closing Balance
| 4. Closing Balance | 10,739,083.13 | 10,739,083.13 |
| Item | Houses and buildings | Land use right | Construction in Progress | Total |
II. Accumulated depreciation andaccumulated amortization
| II. Accumulated depreciation and accumulated amortization |
1. Balance at the beginning of the
period
| 1. Balance at the beginning of the period | 3,045,741.34 | 3,045,741.34 |
2. Amount increased in the current
period
| 2. Amount increased in the current period | 527,156.66 | 527,156.66 |
(1) Provision or amortization
| (1) Provision or amortization | 527,156.66 | 527,156.66 |
3. Amount decreased in the current
period
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
(2) Other roll-out
| (2) Other roll-out |
4. Closing Balance
| 4. Closing Balance | 3,572,898.00 | 3,572,898.00 |
III. Provision for impairment
| III. Provision for impairment |
1. Balance at the beginning of the
period
| 1. Balance at the beginning of the period |
2. Amount increased in the current
period
| 2. Amount increased in the current period |
(1) Accrual
| (1) Accrual |
3. Amount decreased in the current
period
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
(2) Other roll-out
| (2) Other roll-out |
4. Closing Balance
| 4. Closing Balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 7,166,185.13 | 7,166,185.13 |
2. Beginning book value
| 2. Beginning book value | 7,693,341.79 | 7,693,341.79 |
The recoverable amount is determined according to the higher of the net amount of the assets fair value subtracted by the disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the data used in impairment testing in prior years orexternal information
Reasons for the variance between the information utilized in the Company’s impairment testing in prior years and the actual circumstances ofthe current year
Other description:
(2) Investment real estates using fair value measurement mode
□ Applicable √ Not applicable
(3) Converted to investment property and valued at fair value
Unit: yuan
| Item | Accounts before conversion | Amount | Conversion reason | Approval procedures | Impact on profit or loss | Impact on other comprehensive income |
(4) Investment real estates without certificate of title
Unit: yuan
| Item | Book value | Reasons for not obtaining the certificate of title |
Other description
21. Fixed Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Fixed Assets
| Fixed Assets | 2,903,124,395.97 | 2,749,018,750.62 |
Total
| Total | 2,903,124,395.97 | 2,749,018,750.62 |
(1) Fixed assets
Unit: yuan
| Item | Houses and building | Machinery equipment | Transportation equipment | Electronic equipment and office equipment, etc. | Total |
I. Original book
value:
| I. Original book value: |
1. Balance at the
beginning of theperiod
| 1. Balance at the beginning of the period | 2,009,828,801.41 | 1,860,574,551.49 | 35,543,871.77 | 164,134,135.94 | 4,070,081,360.61 |
2. Amount increased
in the current period
| 2. Amount increased in the current period | 55,942,706.67 | 242,443,246.16 | 1,622,017.97 | 7,974,471.09 | 307,982,441.89 |
(1) Purchase
| (1) Purchase | 10,358,791.71 | 60,242,676.89 | 1,424,053.37 | 7,496,016.53 | 79,521,538.50 |
(2) Transfer from
construction inprogress
| (2) Transfer from construction in progress | 45,583,914.96 | 182,200,569.27 | 227,784,484.23 |
(3) Increase by
business combination
| (3) Increase by business combination | 197,964.60 | 478,454.56 | 676,419.16 |
3. Amount decreased
in the current period
| 3. Amount decreased in the current period | 693,912.23 | 34,318,423.96 | 1,334,507.81 | 4,833,429.58 | 41,180,273.58 |
(1) Disposal or scrap
| (1) Disposal or scrap | 693,912.23 | 34,318,423.96 | 1,334,507.81 | 4,833,429.58 | 41,180,273.58 |
4. Closing Balance
| 4. Closing Balance | 2,065,077,595.85 | 2,068,699,373.69 | 35,831,381.93 | 167,275,177.45 | 4,336,883,528.92 |
| Item | Houses and building | Machinery equipment | Transportation equipment | Electronic equipment and office equipment, etc. | Total |
II. Accumulateddepreciation
| II. Accumulated depreciation |
1. Balance at the
beginning of theperiod
| 1. Balance at the beginning of the period | 382,214,592.23 | 703,126,447.87 | 22,075,956.18 | 92,754,109.55 | 1,200,171,105.83 |
2. Amount increased
in the current period
| 2. Amount increased in the current period | 38,874,057.74 | 75,034,816.28 | 1,562,651.28 | 15,897,693.16 | 131,369,218.46 |
(1) Accrual
| (1) Accrual | 38,874,057.74 | 75,034,816.28 | 1,437,273.70 | 15,733,193.16 | 131,079,340.88 |
(2) Increase by
business combination
| (2) Increase by business combination | 125,377.58 | 164,500.00 | 289,877.58 |
3. Amount decreased
in the current period
| 3. Amount decreased in the current period | 217,637.97 | 13,680,866.17 | 1,167,198.17 | 3,598,964.86 | 18,664,667.17 |
(1) Disposal or scrap
| (1) Disposal or scrap | 217,637.97 | 13,680,866.17 | 1,167,198.17 | 3,598,964.86 | 18,664,667.17 |
4. Closing Balance
| 4. Closing Balance | 420,871,012.00 | 764,480,397.98 | 22,471,409.29 | 105,052,837.85 | 1,312,875,657.12 |
III. Provision forimpairment
| III. Provision for impairment |
1. Balance at the
beginning of theperiod
| 1. Balance at the beginning of the period | 43,277,161.98 | 76,469,048.39 | 25,258.85 | 1,120,034.94 | 120,891,504.16 |
2. Amount increased
in the current period
| 2. Amount increased in the current period | 298,426.97 | 298,426.97 |
(1) Accrual
| (1) Accrual | 298,426.97 | 298,426.97 |
3. Amount decreased
in the current period
| 3. Amount decreased in the current period | 306,455.30 | 306,455.30 |
(1) Disposal or scrap
| (1) Disposal or scrap | 306,455.30 | 306,455.30 |
4. Closing Balance
| 4. Closing Balance | 43,277,161.98 | 76,461,020.06 | 25,258.85 | 1,120,034.94 | 120,883,475.83 |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 1,600,929,421.87 | 1,227,757,955.65 | 13,334,713.79 | 61,102,304.66 | 2,903,124,395.97 |
2. Beginning book
value
| 2. Beginning book value | 1,584,337,047.20 | 1,080,979,055.23 | 13,442,656.74 | 70,259,991.45 | 2,749,018,750.62 |
(2) Fixed assets that are temporarily idle
Unit: yuan
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Remark |
Machinery equipment
| Machinery equipment | 29,964,781.30 | 11,902,752.49 | 84,482.78 | 17,977,546.03 | Not needed for now |
Electronic equipmentand office equipment,etc.
| Electronic equipment and office equipment, etc. | 14,664.80 | 12,641.28 | 2,023.52 | Not needed for now |
Total
| Total | 29,979,446.10 | 11,915,393.77 | 84,482.78 | 17,979,569.55 |
(3) Fixed assets leased out by operating lease
Unit: yuan
| Item | Ending book value |
(4) Fixed assets without certificate of title
Unit: yuan
| Item | Book value | Reasons for not obtaining the certificate of title |
Winner Medical (Tianmen) - Automated storage
| Winner Medical (Tianmen) - Automated storage | 62,464,745.87 | The formalities have not yet been completed |
Spunlace Phase III No.2 Finished ProductWorkshop Project of Winner Medical (Tianmen)
| Spunlace Phase III No.2 Finished Product Workshop Project of Winner Medical (Tianmen) | 11,936,693.40 | The formalities have not yet been completed |
Winner Medical (Wuhan) - No.1 SortingWorkshops (Phase II)
| Winner Medical (Wuhan) - No.1 Sorting Workshops (Phase II) | 62,516,120.46 | The formalities have not yet been completed |
Winner Medical (Wuhan) - No.2 SortingWorkshops (Phase II)
| Winner Medical (Wuhan) - No.2 Sorting Workshops (Phase II) | 121,790,936.60 | The formalities have not yet been completed |
Winner Medical (Wuhan) - No.3 SortingWorkshops (Phase II)
| Winner Medical (Wuhan) - No.3 Sorting Workshops (Phase II) | 55,272,452.38 | The formalities have not yet been completed |
Other description
(5) Impairment testing of fixed assets
□ Applicable √ Not applicable
(6) Liquidation of fixed assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description
22. Construction in Progress
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Construction in Progress
| Construction in Progress | 1,030,446,202.20 | 984,571,329.05 |
Total
| Total | 1,030,446,202.20 | 984,571,329.05 |
(1) Construction in progress
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Winner Medical(Wuhan) engineeringproject
| Winner Medical (Wuhan) engineering project | 258,457,603.95 | 258,457,603.95 | 312,034,251.51 | 312,034,251.51 |
Winner Medical(Jiayu) engineeringproject
| Winner Medical (Jiayu) engineering project | 384,719,787.22 | 384,719,787.22 | 308,354,182.04 | 308,354,182.04 |
Winner Medical(Shenzhen)engineering project
| Winner Medical (Shenzhen) engineering project | 127,436,703.95 | 127,436,703.95 | 76,348,750.97 | 76,348,750.97 |
Winner Medical(Hunan) engineeringproject
| Winner Medical (Hunan) engineering project | 109,439,767.91 | 109,439,767.91 | 59,274,700.93 | 59,274,700.93 |
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Zhejiang Longtermproject
| Zhejiang Longterm project | 47,281,148.38 | 47,281,148.38 | 18,342,398.26 | 18,342,398.26 |
Winner Guilinengineering project
| Winner Guilin engineering project | 25,760,934.47 | 10,205,833.26 | 15,555,101.21 | 46,030,337.25 | 10,205,833.26 | 35,824,503.99 |
Winner Medical(Huanggang)Engineering Project
| Winner Medical (Huanggang) Engineering Project | 12,653,233.93 | 12,653,233.93 | 12,299,188.10 | 12,299,188.10 |
Tianmeninfrastructure project
| Tianmen infrastructure project | 641,726.39 | 641,726.39 | 1,009,831.16 | 1,009,831.16 |
Other equipment to beinstalled and sporadicprojects
| Other equipment to be installed and sporadic projects | 74,290,529.26 | 29,400.00 | 74,261,129.26 | 161,112,922.09 | 29,400.00 | 161,083,522.09 |
Total
| Total | 1,040,681,435.46 | 10,235,233.26 | 1,030,446,202.20 | 994,806,562.31 | 10,235,233.26 | 984,571,329.05 |
(2) Current changes in major projects under construction
Unit: yuan
| Project name | Budget number | Balance at the beginning of the period | Amount increased in the current period | Amount carried forward to fixed assets in the current period | Other decreases in the current period | Closing Balance | Proportion of total project input to the budget | Progress of works | Accumulated amount of interest capitalization | Including: interest capitalization funds in the current period | Interest capitalization rate in the current period | Source of funds |
WinnerIndustrial Park(Jiayu) ProjectConstructionEngineering ofWorkshop 1-4
| Winner Industrial Park (Jiayu) Project Construction Engineering of Workshop 1-4 | 272,380,000.00 | 185,383,717.54 | 59,747,691.46 | 245,131,409.00 | 90.00% | 93.62% | Others |
WinnerMedical(Wuhan) PhaseII Main Project
| Winner Medical (Wuhan) Phase II Main Project | 110,871,722.11 | 91,545,458.64 | 24,143,495.10 | 115,688,953.74 | 104.34% | 98.00% | Others |
AutomatedStorageEngineering inPhase II Plantof WinnerMedical(Wuhan)
| Automated Storage Engineering in Phase II Plant of Winner Medical (Wuhan) | 96,000,000.00 | 80,707,964.60 | 1,147,901.37 | 81,855,865.97 | 0.00 | 85.27% | 100.00% | Others |
R&D CenterProject ofWinnerMedical(Wuhan)
| R&D Center Project of Winner Medical (Wuhan) | 35,666,270.00 | 31,085,281.20 | 31,085,281.20 | 87.16% | 95.00% | Others |
Shift Buildingand CanteenExpansionProject ofWinnerMedical(Wuhan)
| Shift Building and Canteen Expansion Project of Winner Medical (Wuhan) | 33,213,730.00 | 31,705,400.06 | 31,705,400.06 | 95.46% | 98.00% | Others |
MedicalIndustryBuilding ofWinnerMedical(Shenzhen)
| Medical Industry Building of Winner Medical (Shenzhen) | 261,723,960.00 | 68,986,974.75 | 58,449,729.20 | 127,436,703.95 | 48.69% | 75.00% | Others |
MexicoLongterm plant
| Mexico Longterm plant | 81,270,000.00 | 16,988,799.61 | 30,292,348.77 | 47,281,148.38 | 58.18% | 56.00% | Others |
WinnerMedical(Hunan)Medical DeviceIndustrial ParkProject Phase I
| Winner Medical (Hunan) Medical Device Industrial Park Project Phase I | 600,000,000.00 | 59,274,700.93 | 49,222,188.28 | 108,496,889.21 | 18.08% | 30.00% | Others |
Total
| Total | 1,491,125,682.11 | 565,678,297.33 | 223,003,354.18 | 81,855,865.97 | 0.00 | 706,825,785.54 |
(3) Provision for impairment of construction in progress in the current period
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance | Reason for accrual |
Other description
(4) Impairment testing of construction in progress
□ Applicable √ Not applicable
(5) Engineering materials
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Other description:
23. Productive Biological Assets
(1) Productive biological assets using cost measurement mode
□ Applicable √ Not applicable
(2) Impairment testing of productive biological assets using the cost measurement model
□ Applicable √ Not applicable
(3) Productive biological assets using fair value measurement mode
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-Use Assets
(1) Right-of-use assets
Unit: yuan
| Item | Houses and building | Total |
I. Original book value
| I. Original book value |
1. Balance at the beginning of the period
| 1. Balance at the beginning of the period | 865,553,649.50 | 865,553,649.50 |
2. Amount increased in the current period
| 2. Amount increased in the current period | 114,724,795.38 | 114,724,795.38 |
New lease
| New lease | 114,724,795.38 | 114,724,795.38 |
3. Amount decreased in the current period
| 3. Amount decreased in the current period | 119,924,882.20 | 119,924,882.20 |
Disposal
| Disposal | 119,924,882.20 | 119,924,882.20 |
4. Ending balance
| 4. Ending balance | 860,353,562.68 | 860,353,562.68 |
II. Accumulated depreciation
| II. Accumulated depreciation |
1. Balance at the beginning of the period
| 1. Balance at the beginning of the period | 448,057,628.14 | 448,057,628.14 |
2. Amount increased in the current period
| 2. Amount increased in the current period | 102,793,692.82 | 102,793,692.82 |
(1) Accrual
| (1) Accrual | 102,793,692.82 | 102,793,692.82 |
3. Amount decreased in the current period
| 3. Amount decreased in the current period | 112,315,436.65 | 112,315,436.65 |
(1) Disposal
| (1) Disposal | (2) 112,315,436.65 | (3) 112,315,436.65 |
4. Closing Balance
| 4. Closing Balance | 438,535,884.31 | 438,535,884.31 |
III. Provision for impairment
| III. Provision for impairment |
1. Balance at the beginning of the period
| 1. Balance at the beginning of the period |
2. Amount increased in the current period
| 2. Amount increased in the current period |
(1) Accrual
| (1) Accrual |
3. Amount decreased in the current period
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
4. Closing Balance
| 4. Closing Balance |
IV. Book value
| IV. Book value |
1. Ending book value
| 1. Ending book value | 421,817,678.37 | 421,817,678.37 |
2. Beginning book value
| 2. Beginning book value | 417,496,021.36 | 417,496,021.36 |
(2) Testing for impairment of right-of-use assets
□ Applicable √ Not applicable
Other description:
26. Intangible Assets
(1) Intangible assets
Unit: yuan
| Item | Land use right | Patent right | Nonpatented technology | Software use right | Franchised use right | Trademark right | Client relations | Total |
I. Original bookvalue
| I. Original book value |
1. Balance at
the beginningof the period
| 1. Balance at the beginning of the period | 547,679,428.57 | 269,943,554.50 | 98,563,144.05 | 10,228,226.53 | 95,103,980.97 | 189,568,908.40 | 1,211,087,243.02 |
2. Amount
increased inthe currentperiod
| 2. Amount increased in the current period | 1,040,300.00 | 30,000.00 | 2,033,078.75 | 3,103,378.75 |
(1) Purchase
| (1) Purchase | 1,040,300.00 | 30,000.00 | 2,033,078.75 | 3,103,378.75 |
(2) Internal R&D
| (2) Internal R&D |
(3) Increase by
businesscombination
| (3) Increase by business combination |
3. Amount
decreased inthe currentperiod
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
4. Closing
Balance
| 4. Closing Balance | 548,719,728.57 | 269,973,554.50 | 100,596,222.80 | 10,228,226.53 | 95,103,980.97 | 189,568,908.40 | 1,214,190,621.77 |
II. Accumulatedamortization
| II. Accumulated amortization |
1. Balance at
the beginningof the period
| 1. Balance at the beginning of the period | 60,691,855.38 | 52,227,917.11 | 55,153,676.14 | 10,228,226.53 | 15,074,249.42 | 22,483,084.93 | 215,859,009.51 |
2. Amount
increased inthe currentperiod
| 2. Amount increased in the current period | 5,427,791.72 | 14,608,571.39 | 4,075,611.02 | 4,554,399.64 | 8,850,186.30 | 37,516,560.07 |
(1) Accrual
| (1) Accrual | 5,427,791.72 | 14,608,571.39 | 4,075,611.02 | 4,554,399.64 | 8,850,186.30 | 37,516,560.07 |
3. Amount
decreased inthe currentperiod
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
4. Closing
Balance
| 4. Closing Balance | 66,119,647.10 | 66,836,488.50 | 59,229,287.16 | 10,228,226.53 | 19,628,649.06 | 31,333,271.23 | 253,375,569.58 |
III. Provision forimpairment
| III. Provision for impairment |
1. Balance at the
beginning of theperiod
| 1. Balance at the beginning of the period |
2. Amount
increased in thecurrent period
| 2. Amount increased in the current period |
(1) Accrual
| (1) Accrual |
3. Amount
decreased in thecurrent period
| 3. Amount decreased in the current period |
(1) Disposal
| (1) Disposal |
4. Closing
Balance
| 4. Closing Balance |
IV. Book value
| IV. Book value |
1. Ending book
value
| 1. Ending book value | 482,600,081.47 | 203,137,066.00 | 41,366,935.64 | 75,475,331.91 | 158,235,637.17 | 960,815,052.19 |
2. Beginning book
value
| 2. Beginning book value | 486,987,573.19 | 217,715,637.39 | 43,409,467.91 | 80,029,731.55 | 167,085,823.47 | 995,228,233.51 |
The proportion of intangible assets formed through internal R & D of the Company in the balance of intangible assets at the end of currentperiod: 0.00%
(2) Data resources recognized as intangible assets
Unit: yuan
| Item | Intangible assets of outsourced data resources | Intangible assets of self-processed data resources | Intangible assets of data resources otherwise acquired | Total |
(3) Land use right without certificate of title
Unit: yuan
| Item | Book value | Reasons for not obtaining the certificate of title |
Winner Medical (Hunan) - Phase II land forinfusion category
| Winner Medical (Hunan) - Phase II land for infusion category | 82,852,220.99 | The two certificates are consolidated into one, and the real estate certificate can be applied for upon completion |
Other description
(4) Testing for impairment of intangible assets
□ Applicable √ Not applicable
27. Goodwill
(1) Original book value of goodwill
Unit: yuan
| Investee name or goodwill forming matter | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance | |
| Formed by business combination | Increase business acquisition | Disposal | |||
Business combination notunder common control -Acquisition of MalaysiaWinner
| Business combination not under common control - Acquisition of Malaysia Winner | 2,681,232.09 | 2,681,232.09 |
Business combination notunder common control -Acquisition of ZhejiangLongterm
| Business combination not under common control - Acquisition of Zhejiang Longterm | 390,472,978.67 | 390,472,978.67 |
Business combination notunder common control -Acquisition of Guilin Latex
| Business combination not under common control - Acquisition of Guilin Latex | 253,215,940.40 | 253,215,940.40 |
Business combination notunder common control -Acquisition of WinnerMedical (Hunan)
| Business combination not under common control - Acquisition of Winner Medical (Hunan) | 388,989,258.26 | 388,989,258.26 |
Business combination notunder common control -Acquisition of JunjianMedical
| Business combination not under common control - Acquisition of Junjian Medical | 20,397,972.33 | 20,397,972.33 |
Business combination notunder common control -Acquisition of ZhejiangHonglan
| Business combination not under common control - Acquisition of Zhejiang Honglan | 2,213,420.16 | 2,213,420.16 |
Total
| Total | 1,055,757,381.75 | 2,213,420.16 | 1,057,970,801.91 |
(2) Provision for impairment of goodwill
Unit: yuan
| invested entity name or goodwill forming matter | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
| Accrual | Disposal |
Business combination not undercommon control - Acquisitionof Malaysia Winner
| Business combination not under common control - Acquisition of Malaysia Winner | 2,681,232.09 | 2,681,232.09 |
Business combination not undercommon control - Acquisitionof Guilin Latex
| Business combination not under common control - Acquisition of Guilin Latex | 32,642,673.30 | 32,642,673.30 |
Business combination not undercommon control - Acquisitionof Winner Medical (Hunan)
| Business combination not under common control - Acquisition of Winner Medical (Hunan) | 156,144,473.91 | 156,144,473.91 |
Total
| Total | 191,468,379.30 | 191,468,379.30 |
(3) Information relating to the asset group or asset group combination of goodwill
| Name | The composition and basis of the asset group or portfolio it belongs to | Operating segments and basis | Is it consistent with previous years? |
Changes in asset groups or combinations of asset groups
| Name | Composition before the change | Composition after the change | Objective facts and basis leading to changes |
Other description
(4) Specific method for determining recoverable amount
The recoverable amount is determined according to the higher of the net amount of the assets fair value subtracted by the disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the data used in impairment testing in prior years orexternal information
Reasons for the variance between the information utilized in the Company’s impairment testing in prior years and the actual circumstances ofthe current year
(5) Completion of performance commitments and corresponding impairment of goodwill
A performance commitment is present when goodwill is established, and the reporting period, or the preceding period, falls within thecommitment period.v
□ Applicable √ Not applicable
Other description
28. Long-Term Unamortized Expenses
Unit: yuan
| Item | Balance at the beginning of the period | Amount increased in the current period | Amortization amount in the current period | Other decreases | Closing Balance |
Decoration cost
| Decoration cost | 36,466,182.36 | 1,305,330.29 | 5,914,400.28 | 1,369,756.96 | 30,487,355.41 |
Decoration expenses foroperating leased fixedassets
| Decoration expenses for operating leased fixed assets | 91,788,177.80 | 24,884,556.10 | 21,714,707.75 | 1,168,439.59 | 93,789,586.56 |
Others
| Others | 2,836,109.99 | 303,539.83 | 987,205.65 | 1,016,574.30 | 1,135,869.87 |
Total
| Total | 131,090,470.15 | 26,493,426.22 | 28,616,313.68 | 3,554,770.85 | 125,412,811.84 |
Other description
29. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
Provision for impairment of assets
| Provision for impairment of assets | 573,284,957.88 | 94,753,801.90 | 563,729,896.96 | 93,836,596.43 |
Unrealized profit of internaltransaction
| Unrealized profit of internal transaction | 82,812,941.18 | 17,051,476.54 | 95,050,168.29 | 19,008,937.89 |
Deductible loss
| Deductible loss | 58,716,688.54 | 14,127,381.28 | 162,261,104.42 | 27,044,245.03 |
Dismission welfare
| Dismission welfare | 6,436,926.75 | 1,332,944.84 | 4,779,605.32 | 716,940.80 |
Deferred Income
| Deferred Income | 116,525,098.52 | 18,640,070.42 | 121,649,364.97 | 19,453,796.42 |
Member points
| Member points | 10,302,150.62 | 2,575,537.65 | 8,896,543.12 | 2,224,135.78 |
Accrued liabilities
| Accrued liabilities | 2,171,288.26 | 542,822.07 | 1,171,229.85 | 292,807.46 |
Deferred tax assets arising fromleases
| Deferred tax assets arising from leases | 497,516,243.96 | 117,460,848.20 | 494,525,992.95 | 115,610,000.62 |
Total
| Total | 1,347,766,295.71 | 266,484,882.90 | 1,452,063,905.88 | 278,187,460.43 |
(2) Unoffset deferred income tax liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Asset evaluation increment for businesscombination not under common control
| Asset evaluation increment for business combination not under common control | 592,226,312.21 | 103,892,599.82 | 647,328,681.03 | 110,179,927.94 |
Changes in fair value of trading financialassets
| Changes in fair value of trading financial assets | 48,571,280.95 | 7,290,458.81 | 41,058,540.71 | 6,289,451.44 |
| Item | Closing Balance | Balance at the beginning of the period | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
Depreciation of fixed assets
| Depreciation of fixed assets | 123,821,708.82 | 18,573,256.33 | 132,992,106.34 | 19,952,306.87 |
case that the change of a differences arisingDeferred income tax liabilities
| case that the change of a differences arising Deferred income tax liabilities | 462,976,380.13 | 107,203,609.28 | 457,331,866.07 | 104,935,304.46 |
Total
| Total | 1,227,595,682.11 | 236,959,924.24 | 1,278,711,194.15 | 241,356,990.71 |
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
| Item | Ending offset amount of deferred income tax assets and liabilities | Ending balance of deferred income tax assets and liabilities after offset | Beginning offset amount of deferred income tax assets and liabilities | Beginning balance of deferred income tax assets and liabilities after offset |
Deferred income taxassets
| Deferred income tax assets | 104,761,463.13 | 161,723,419.77 | 102,836,212.41 | 175,351,248.02 |
Deferred income taxliabilities
| Deferred income tax liabilities | 104,761,463.13 | 132,198,461.11 | 102,836,212.41 | 138,520,778.30 |
(4) Details of unrecognized deferred income tax assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Deductible loss
| Deductible loss | 231,447,954.68 | 237,469,440.67 |
Provision for impairment of assets
| Provision for impairment of assets | 1,003,913.97 | 1,003,903.52 |
Total
| Total | 232,451,868.65 | 238,473,344.19 |
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
| Year | Closing balance | Beginning amount | Remark |
2024
| 2024 | 46,074,791.69 | 49,242,056.04 |
2025
| 2025 | 46,546,726.71 | 53,806,994.23 |
2026
| 2026 | 65,550,076.42 | 67,039,319.19 |
2027
| 2027 | 64,047,377.46 | 64,047,377.46 |
2028
| 2028 | 2,416,690.21 | 2,597,636.60 |
2029
| 2029 | 5,429,220.26 |
No maturity date
| No maturity date | 1,383,071.93 | 736,057.15 |
Total
| Total | 231,447,954.68 | 237,469,440.67 |
Other description
30. Other Non-Current Assets
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Advance project payment / equipment purchase payment / advance store engineering and decoration payment | 113,642,924.31 | 113,642,924.31 | 84,628,360.75 | 84,628,360.75 |
Buildings and land userights in ShenzhenLonghua IndustrialPark
| Buildings and land use rights in Shenzhen Longhua Industrial Park | 20,228,190.61 | 20,228,190.61 | 20,228,190.61 | 20,228,190.61 |
Total
| Total | 133,871,114.92 | 133,871,114.92 | 104,856,551.36 | 104,856,551.36 |
Other description:
31. Assets with Ownership or Use Rights Restricted
Unit: yuan
| Item | The end of the period | The beginning of the period | ||||||
| Book balance | Book value | Type of restriction | Restricted situation | Book balance | Book value | Type of restriction | Restricted situation | |
Cash andcashequivalents
| Cash and cash equivalents | 23,672,939.83 | 23,672,939.83 | Security deposit | For details, see “VII. Notes to Items in the Consolidated Financial Statements / 1. Cash and cash equivalents”. | 28,791,288.82 | 28,791,288.82 | Security deposit | For details, see “VII. Notes to Items in the Consolidated Financial Statements / 1. Cash and cash equivalents”. |
OtherNon-CurrentAssets
| Other Non-Current Assets | 20,228,190.61 | 20,228,190.61 | For details, please refer to Note “XVIII. Other Important Matters 7. Other Important Events that Affect Investors’ Decisions (1) Urban Renewal Project of Winner Industrial Park” Winner Medical (Shenzhen) - Longhua Industrial Park | 20,228,190.61 | 20,228,190.61 | For details, please refer to Note “XVIII. Other Important Matters 7. Other Important Events that Affect Investors’ Decisions (1) Urban Renewal Project of Winner Industrial Park” Winner Medical (Shenzhen) - Longhua Industrial Park |
OtherCurrentAssets
| Other Current Assets | 180,000,000.00 | 180,000,000.00 | Security deposit | Pledged certificate of deposit |
Total
| Total | 43,901,130.44 | 43,901,130.44 | 229,019,479.43 | 229,019,479.43 |
Other description:
32. Short-Term Loans
(1) Classification of short-term loans
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Guaranteed borrowing
| Guaranteed borrowing | 100,000.00 | 100,000.00 |
Debt of honor
| Debt of honor | 270,096,567.28 | 233,000,000.00 |
Bill discount
| Bill discount | 720,000,000.00 | 1,060,000,000.00 |
Trade financing (Letter of Credit, etc.)
| Trade financing (Letter of Credit, etc.) | 180,000,000.00 | 200,000,000.00 |
Borrowing interest
| Borrowing interest | 130,627.50 | 138,955.00 |
Total
| Total | 1,170,327,194.78 | 1,493,238,955.00 |
Description of classification of short-term loans:
(2) short-term loans unpaid overdue
The total amount of overdue short-term borrowings at the end of the period is 0.00 yuan, of which the important overdue short-term borrowingsare as follows:
Unit: yuan
| Borrower | Closing Balance | Borrowing interest rate | Overdue time | Overdue interest rate |
Other description
33. Tradable Financial Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Including:
| Including: |
Including:
| Including: |
Other description:
34. Derivative Financial Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description:
35. Notes Payable
Unit: yuan
| Type | Closing Balance | Balance at the beginning of the period |
Banker’s acceptance bill
| Banker’s acceptance bill | 363,977,108.89 | 315,902,844.15 |
Total
| Total | 363,977,108.89 | 315,902,844.15 |
36. Accounts Payable
(1) Presentation of accounts payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 807,130,844.94 | 1,088,985,790.28 |
1 to 2 years (including 2 years)
| 1 to 2 years (including 2 years) | 16,747,338.40 | 21,481,374.19 |
2 to 3 years (including 3 years)
| 2 to 3 years (including 3 years) | 3,718,398.52 | 1,568,734.69 |
More than 3 years
| More than 3 years | 4,826,734.44 | 4,766,321.22 |
Total
| Total | 832,423,316.30 | 1,116,802,220.38 |
(2) Important accounts payable with Overdue the aging more than 1 year
Unit: yuan
| Item | Closing Balance | Reasons for failure of payment or carryover |
Other description:
37. Other Payables
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Dividends payable
| Dividends payable | 203,307,193.50 |
Other Payables
| Other Payables | 523,915,201.64 | 591,310,917.61 |
Total
| Total | 727,222,395.14 | 591,310,917.61 |
(1) Interest payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Important overdue and unpaid interest:
Unit: yuan
| Item | Overdue balance | Overdue reason |
Other description:
(2) Dividends payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Common stock dividends
| Common stock dividends | 203,307,193.50 |
Total
| Total | 203,307,193.50 |
(3) Other Payables
1) Other payables listed by nature
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Margin and deposit
| Margin and deposit | 282,981,586.57 | 281,427,299.00 |
Freight and other accrued expenses
| Freight and other accrued expenses | 156,806,827.32 | 186,895,812.59 |
Commission
| Commission | 31,769,282.20 | 58,667,353.50 |
VAT & Customs
| VAT & Customs | 10,082,263.77 | 12,701,935.49 |
Intercourse funds with the third parties
| Intercourse funds with the third parties | 5,160,498.80 | 12,658,807.80 |
ESOP stock buyback requirement
| ESOP stock buyback requirement | 10,857,500.00 | 10,857,500.00 |
Intercourse funds with related parties
| Intercourse funds with related parties | 5,395,945.27 |
Others
| Others | 26,257,242.98 | 22,706,263.96 |
Total
| Total | 523,915,201.64 | 591,310,917.61 |
2) Significant overdue accounts payable aged over 1 year or past due
Unit: yuan
| Item | Closing Balance | Reasons for failure of payment or carryover |
Other description
38. Advance from Customers
(1) Presentation of advance from customers
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
(2) Important advances from customers with the aging more than 1 year or past due
Unit: yuan
| Item | Closing Balance | Reasons for failure of payment or carryover |
Unit: yuan
| Item | Amount of change | Reason for change |
39. Contract Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Customer consideration received
| Customer consideration received | 169,609,619.38 | 184,366,349.03 |
Member points
| Member points | 10,302,150.62 | 8,896,543.12 |
Total
| Total | 179,911,770.00 | 193,262,892.15 |
Significant contractual obligations aged over 1 year
Unit: yuan
| Item | Closing Balance | Reasons for failure of payment or carryover |
Amount and reasons for significant changes in book value during the reporting period
Unit: yuan
| Item | Amount of change | Reason for change |
40. Payroll Payable
(1) Presentation of payroll payable
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
I. Short-term compensation
| I. Short-term compensation | 242,607,317.55 | 808,312,865.63 | 844,082,377.09 | 206,837,806.09 |
II. Welfare after dismission - defined
contribution plan
| II. Welfare after dismission - defined contribution plan | 7,866,690.22 | 63,699,822.00 | 64,193,503.83 | 7,373,008.39 |
III. Dismission welfare
| III. Dismission welfare | 4,001,227.95 | 18,615,369.55 | 20,011,628.57 | 2,604,968.93 |
Total
| Total | 254,475,235.72 | 890,628,057.18 | 928,287,509.49 | 216,815,783.41 |
(2) Presentation of short-term compensation
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
1. Salary, bonus, allowance and
subsidy
| 1. Salary, bonus, allowance and subsidy | 238,771,298.44 | 750,380,438.44 | 784,335,067.65 | 204,816,669.23 |
2. Welfare expenses for employees
| 2. Welfare expenses for employees | 2,824,314.61 | 7,226,343.58 | 9,179,710.69 | 870,947.50 |
3. Social security
| 3. Social security | 473,703.76 | 31,273,286.73 | 31,321,268.74 | 425,721.75 |
Including: medical insurance premium
| Including: medical insurance premium | 260,778.41 | 27,530,950.61 | 27,543,330.91 | 248,398.11 |
Industrial injury insurancepremium
| Industrial injury insurance premium | 160,378.85 | 2,350,893.37 | 2,386,532.37 | 124,739.85 |
Birth insurance premium
| Birth insurance premium | 52,546.50 | 1,391,442.75 | 1,391,405.46 | 52,583.79 |
4. Housing accumulation fund
| 4. Housing accumulation fund | 24,098.00 | 18,327,579.86 | 18,298,081.86 | 53,596.00 |
5. Union dues and staff education fund
| 5. Union dues and staff education fund | 313,902.74 | 1,065,217.02 | 846,185.95 | 532,933.81 |
8. Others
| 8. Others | 200,000.00 | 40,000.00 | 102,062.20 | 137,937.80 |
Total
| Total | 242,607,317.55 | 808,312,865.63 | 844,082,377.09 | 206,837,806.09 |
(3) Presentation of defined contribution plans
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
1. Basic endowment insurance
| 1. Basic endowment insurance | 7,744,745.54 | 60,984,767.29 | 61,462,327.39 | 7,267,185.44 |
2. Unemployment insurance
premium
| 2. Unemployment insurance premium | 121,944.68 | 2,715,054.71 | 2,731,176.44 | 105,822.95 |
Total
| Total | 7,866,690.22 | 63,699,822.00 | 64,193,503.83 | 7,373,008.39 |
Other description:
41. Taxes Payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Added value tax
| Added value tax | 41,138,973.40 | 8,974,689.54 |
Corporate income tax
| Corporate income tax | 36,227,158.43 | 40,190,413.70 |
Individual income tax
| Individual income tax | 3,014,671.84 | 3,866,181.55 |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 2,524,456.72 | 946,970.72 |
Housing property tax
| Housing property tax | 6,017,921.91 | 6,172,395.17 |
Education surcharge and local education surcharge
| Education surcharge and local education surcharge | 1,987,382.78 | 837,582.92 |
Land use tax
| Land use tax | 1,549,410.34 | 1,057,104.57 |
Stamp duty
| Stamp duty | 753,700.14 | 789,943.27 |
Others
| Others | 39,222.27 | 42,498.42 |
Total
| Total | 93,252,897.83 | 62,877,779.86 |
Other description
42. Liabilities Held for Sales
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description
43. Non-Current Liabilities Due within One Year
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Long-term borrowing due within one year
| Long-term borrowing due within one year | 180,125,000.00 | 20,138,900.00 |
Lease liabilities due within one year
| Lease liabilities due within one year | 193,481,703.64 | 202,660,926.45 |
Long-term payroll payable due within one year
| Long-term payroll payable due within one year | 333,510.22 | 627,000.00 |
Total
| Total | 373,940,213.86 | 223,426,826.45 |
Other description:
44. Other Current Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Refund payable
| Refund payable | 2,171,288.26 | 1,950,288.26 |
Output tax to be transferred
| Output tax to be transferred | 16,343,696.87 | 17,762,039.93 |
Total
| Total | 18,514,985.13 | 19,712,328.19 |
Increase/decrease of short-term bonds payable:
Unit: yuan
| Name of bond | Book value | Coupon rate | Issue date | Maturity of bond | Issue amount | Balance at the beginning of the period | Current issue | Accrued interest at book value | Amortization of premium and discount | Current repayment | Closing Balance | Default or not |
Total
| Total |
Other description:
45. Long-Term Loans
(1) Classification of long-term borrowing
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Debt of honor
| Debt of honor | 170,000,000.00 |
Total
| Total | 170,000,000.00 |
Description of classification of long-term borrowing:
Other descriptions, including interest rate range:
46. Bonds Payable
(1) Bonds Payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
(2) Increase and decrease of bonds payable (excluding preferred shares, perpetual bonds and other financial instruments classified as
financial liabilities)
Unit: yuan
| Name of bond | Book value | Coupon rate | Issue date | Maturity of bond | Issue amount | Balance at the beginning of the period | Current issue | Accrued interest at book value | Amortization of premium and discount | Current repayment | Closing Balance | Default or not |
Total
| Total |
(3) Description of convertible bonds
(4) Description of other financial instruments classified as financial liabilities
Basic information of the outstanding preferred shares, perpetual bonds and other financial instruments at the end of the period
Table of changes in outstanding financial instruments, such as preferred shares, perpetual bonds at the end of the period
Unit: yuan
| Outstanding financial instruments | The beginning of the period | Increase in the current period | Decrease in the current period | The end of the period | ||||
| Quantity | Book value | Quantity | Book value | Quantity | Book value | Quantity | Book value | |
Description of the basis for the classification of other financial instruments into financial liabilities
Other description
47. Lease Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Lease payments
| Lease payments | 323,526,916.55 | 332,663,417.84 |
Unrecognized financing expenses
| Unrecognized financing expenses | -19,354,370.74 | -40,653,913.80 |
Total
| Total | 304,172,545.81 | 292,009,504.04 |
Other description
48. Long-Term Payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Total
| Total | 0.00 |
(1) Long-term payables listed by nature
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description:
(2) Special accounts payable
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance | Causes |
Other description:
49. Long-Term Payroll Payable
(1) Table of long-term payroll payable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
I. Welfare after dismission - net liabilities of definedbenefit plan
| I. Welfare after dismission - net liabilities of defined benefit plan | 8,844,510.22 | 9,138,000.00 |
Long-term payroll payable due within one year
| Long-term payroll payable due within one year | -333,510.22 | -627,000.00 |
Total
| Total | 8,511,000.00 | 8,511,000.00 |
(2) Changes in defined benefit plan
Present value of defined benefit plan obligations:
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Planned assets:
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Net liabilities (net assets) of defined benefit plan
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Description of the content of defined benefit plan and its related risks, impact on the Company’s future cash flow, time and uncertainty:
Description of significant actuarial assumptions and sensitivity analysis results of defined benefit plan:
Other description:
50. Estimated Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | Causes |
Other descriptions, including relevant important assumptions and estimation descriptions of important estimated liabilities:
51. Deferred Income
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance | Causes |
GovernmentSubsidies
| Government Subsidies | 121,649,364.97 | 2,281,800.00 | 7,406,066.45 | 116,525,098.52 | Government subsidies related to assets |
Total
| Total | 121,649,364.97 | 2,281,800.00 | 7,406,066.45 | 116,525,098.52 |
Other description:
52. Other Non-Current Liabilities
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other description:
53. Capital Stock
Unit: yuan
| Balance at the beginning of the period | New issue of shares | Increase/decrease (+, -) | Closing Balance | ||||
| Share donation | Share capital increase from reserved funds | Others | Subtotal | ||||
Totalamount ofshares
| Total amount of shares | 594,387,367.00 | -6,094,659.00 | -6,094,659.00 | 588,292,708.00 |
Other description:
Note: 6,094,659 shares remaining in the Phase I employee stock ownership plan (including the reserved part) were excluded from the 2021repurchase plan in the special securities account canceled by the Company in the current period. After the cancellation, the total share capitalof the Company has been reduced from 594,387,367 shares to 588,292,708 shares.
54. Other Equity Instruments
(1) Basic information of the outstanding preferred shares, perpetual bonds and other financial instruments at the end of the period
(2) Table of changes in outstanding financial instruments, such as preferred shares, perpetual bonds at the end of the period
Unit: yuan
| Outstanding financial instruments | The beginning of the period | Increase in the current period | Decrease in the current period | The end of the period | ||||
| Quantity | Book value | Quantity | Book value | Quantity | Book value | Quantity | Book value | |
The increase and decrease of other equity instruments in the current period, the reasons for the change, and the basis of relevant accountingtreatment:
Other description:
55. Capital Reserve
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
Capital premium (capitalstock premium)
| Capital premium (capital stock premium) | 4,263,337,205.04 | 445,124,823.17 | 3,818,212,381.87 |
Other capital surplus
| Other capital surplus | 117,789,282.25 | 2,908,958.42 | 120,698,240.67 |
Total
| Total | 4,381,126,487.29 | 2,908,958.42 | 445,124,823.17 | 3,938,910,622.54 |
Other description, including current increase/decrease and change reasons:
1. The decrease of capital premium (equity premium) in the current period is mainly due to the fact that the Company canceled therepurchase plan in 2021 in the special securities account, excluding the remaining 6,094,659 shares in the first employee stock ownershipplan (including the reserved part). After the cancellation, the total share capital of the Company has been reduced from 594,387,367shares to 588,292,708 shares, corresponding to the difference between the cost of treasury shares and the number of shares of RMB445,124,832.17, which was charged to capital surplus - share premium.
2. The increase in other capital reserves in the current period is mainly due to the implementation of the employee stock ownership plan in2023, and the Company confirmed that the incentive expenses totaled 2,908,958.42 yuan.
56. Treasury Stock
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
Treasury Stock
| Treasury Stock | 473,552,442.85 | 194,981,835.21 | 451,219,482.17 | 217,314,795.89 |
Total
| Total | 473,552,442.85 | 194,981,835.21 | 451,219,482.17 | 217,314,795.89 |
Other description, including current increase/decrease and change reasons:
1. The increase in the current period is that the Company repurchased 5,807,900 treasury shares in the current period.
2. The decrease in the current period is the 6,094,659 shares remaining in the 2021 repurchase plan excluding the first employee stock
ownership plan (including the reserved part) in the special securities account of the current period. After the cancellation, the total sharecapital of the Company has been reduced from 594,387,367 shares to 588,292,708 shares, corresponding to the cost of stock shares ofRMB 451,219,482.17.
57. Other Comprehensive Income
Unit: yuan
| Amount incurred in the current period | Closing Balance | |||||||
| Item | Balance at the beginning of the period | Amount before current income tax | Less: amount included in other comprehensive income in previous period transferred into profit and loss in the current period | Less: amount included in other comprehensive income in previous period transferred into retained income in the current period | Less: Income tax expenses | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |
I. Other comprehensive
income that can’t bereclassified into profitand loss
| I. Other comprehensive income that can’t be reclassified into profit and loss | 394,504.61 | 394,504.61 |
Including: Changesarising from re-measurement for definedbenefit plans
| Including: Changes arising from re-measurement for defined benefit plans | 394,504.61 | 394,504.61 |
II. Other comprehensiveincome that will bereclassified into profitand loss
| II. Other comprehensive income that will be reclassified into profit and loss | 1,820,864.83 | -5,381,735.14 | -2,931,540.14 | -2,450,195.00 | -1,110,675.31 |
Balance arising from thetranslation of foreigncurrency financialstatements
| Balance arising from the translation of foreign currency financial statements | 1,820,864.83 | -5,381,735.14 | -2,931,540.14 | -2,450,195.00 | -1,110,675.31 |
Total othercomprehensive income
| Total other comprehensive income | 2,215,369.44 | -5,381,735.14 | -2,931,540.14 | -2,450,195.00 | -716,170.70 |
Other explanations, including the adjustment of the effective part of the cash flow hedging gains and losses transferred to the initial recognizedamount of the hedged item:
58. Special Reserve
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
Other description, including current increase/decrease and change reasons:
59. Surplus Reserve
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance |
Statutory surplusreserves
| Statutory surplus reserves | 420,212,778.13 | 420,212,778.13 |
Total
| Total | 420,212,778.13 | 420,212,778.13 |
Description of surplus reserves, including current increase/decrease and change reasons:
60. Undistributed Profit
Unit: yuan
| Item | Current period | Prior period |
Undistributed profit at the end of previous period beforeadjustment
| Undistributed profit at the end of previous period before adjustment | 6,608,834,768.99 | 6,810,953,829.30 |
Total undistributed profits at the beginning of the adjustmentperiod (+ for increase and - for decrease)
| Total undistributed profits at the beginning of the adjustment period (+ for increase and - for decrease) | 15,161,518.35 |
Undistributed profits at the beginning of the period afteradjustment
| Undistributed profits at the beginning of the period after adjustment | 6,608,834,768.99 | 6,826,115,347.65 |
Plus: Net profits attributable to the owners of parent companyin the current period
| Plus: Net profits attributable to the owners of parent company in the current period | 384,150,379.21 | 681,617,022.68 |
Common stock dividends payable
| Common stock dividends payable | 291,164,904.00 | 797,501,533.10 |
Undistributed profits at the end of the period
| Undistributed profits at the end of the period | 6,701,820,244.20 | 6,710,230,837.23 |
Details of undistributed profits at the beginning of the adjustment period:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, RMB 0.00 of the
undistributed profit at the beginning of the period was affected.
2). Due to the change of accounting policy, RMB 0.00 of the undistributed profit at the beginning of the period was affected.
3). Due to the correction of major accounting errors, RMB 0.00 of the undistributed profit at the beginning of the period was affected.
4). Due to the change of consolidation scope caused by the same control, RMB 0.00 of the undistributed profit at the beginning of the periodwas affected.
5). RMB 0.00 of the undistributed profit at the beginning of the period was affected by the total amount of other adjustments
61. Revenue and Cost
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 4,000,365,794.92 | 2,047,427,786.26 | 4,236,069,768.54 | 2,053,153,499.31 |
Other businesses
| Other businesses | 33,139,309.41 | 21,042,656.32 | 30,768,270.12 | 18,274,707.41 |
Total
| Total | 4,033,505,104.33 | 2,068,470,442.58 | 4,266,838,038.66 | 2,071,428,206.72 |
Breakdown of operating revenues and cost of sale:
Unit: yuan
| Contract classification | Segment 1 | Segment 2 | Medical consumables | Healthy consumer goods | Total | |||||
| Revenue | Cost of sale | Revenue | Cost of sale | Revenue | Cost of sale | Revenue | Cost of sale | Revenue | Cost of sale | |
Business type
| Business type | 1,751,278,597.34 | 1,084,618,155.94 | 2,282,226,506.99 | 983,852,286.64 | 4,033,505,104.33 | 2,068,470,442.58 |
Including:
| Including: |
Main business
| Main business | 1,718,139,287.93 | 1,063,575,499.62 | 2,282,226,506.99 | 983,852,286.64 | 4,000,365,794.92 | 2,047,427,786.26 |
Other businesses
| Other businesses | 33,139,309.41 | 21,042,656.32 | 33,139,309.41 | 21,042,656.32 |
Classified byoperating area
| Classified by operating area | 1,751,278,597.34 | 1,084,618,155.94 | 2,282,226,506.99 | 983,852,286.64 | 4,033,505,104.33 | 2,068,470,442.58 |
Including:
| Including: |
Domestic sales
| Domestic sales | 879,604,610.05 | 554,783,834.26 | 2,282,226,506.99 | 983,852,286.64 | 3,161,831,117.04 | 1,538,636,120.90 |
Overseas sales
| Overseas sales | 871,673,987.29 | 529,834,321.68 | 871,673,987.29 | 529,834,321.68 |
Type of marketsor clients
| Type of markets or clients |
Including:
| Including: |
Type ofcontracts
| Type of contracts |
Including:
| Including: |
Sorted by time ofgoods transfer
| Sorted by time of goods transfer |
Including:
| Including: |
Sorted bycontract duration
| Sorted by contract duration |
Including:
| Including: |
Sorted by saleschannels
| Sorted by sales channels |
Including:
| Including: |
Total
| Total |
Information related to performance obligations:
| Item | Time to fulfill performance obligations | Important payment terms | The nature of the goods the Company promises to transfer | Is he the main responsible person? | Amounts borne by the Company that are expected to be refunded to customers | Types of quality assurance provided by the Company and related obligations |
Other description
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations signed but not yet performed or completed at the end of this reportingperiod is RMB 0.00, of which RMB 0.00 is expected to be recognized as revenue in year 0, RMB 0.00 is expected to be recognized as revenuein year 0, and RMB 0.00 is expected to be recognized as revenue in year 0.
Information related to variable consideration in the contract:
Major contract changes or major transaction price adjustments
Unit: yuan
| Item | Accounting treatment methods | Amount of impact on revenue |
Other description
62. Taxes and Surcharges
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Urban maintenance and construction tax
| Urban maintenance and construction tax | 12,232,083.46 | 14,156,008.49 |
Education surcharge
| Education surcharge | 5,524,309.32 | 6,616,460.38 |
Housing property tax
| Housing property tax | 9,072,652.85 | 6,353,206.48 |
Land use tax
| Land use tax | 3,825,434.01 | 2,683,790.39 |
Stamp duty
| Stamp duty | 2,246,687.40 | 3,296,228.60 |
Surcharge for local education
| Surcharge for local education | 3,682,872.65 | 4,096,996.80 |
Others
| Others | 72,239.43 | 143,517.47 |
Total
| Total | 36,656,279.12 | 37,346,208.61 |
Other description:
63. Administrative Expenses
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Employee Compensation
| Employee Compensation | 164,617,810.80 | 166,770,159.81 |
Equity incentive fee
| Equity incentive fee | 2,908,958.42 | 969,372.65 |
Depreciation and amortization charge
| Depreciation and amortization charge | 85,253,977.21 | 62,559,814.44 |
Consultant and intermediary service fees
| Consultant and intermediary service fees | 6,336,530.64 | 5,393,034.14 |
Maintenance cost
| Maintenance cost | 13,992,875.34 | 12,638,086.57 |
| Item | Amount incurred in the current period | Amount incurred in previous period |
Communication and network services, cloud service fees, etc.
| Communication and network services, cloud service fees, etc. | 9,159,179.36 | 8,675,647.54 |
Water/electricity fee
| Water/electricity fee | 5,008,979.02 | 5,190,635.07 |
Material consumption
| Material consumption | 2,497,021.75 | 872,320.18 |
Others
| Others | 19,670,693.86 | 26,527,631.74 |
Total
| Total | 309,446,026.40 | 289,596,702.14 |
Other description
64. Selling Expenses
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Employee Compensation
| Employee Compensation | 308,895,689.06 | 315,528,733.79 |
Travel expenses
| Travel expenses | 11,089,494.35 | 10,524,681.48 |
Office communication costs
| Office communication costs | 6,712,347.78 | 6,090,498.20 |
Sales commissions and expenses of e-commerce platform
| Sales commissions and expenses of e-commerce platform | 150,321,611.77 | 125,398,549.11 |
Insurance premiums
| Insurance premiums | 2,303,225.44 | 2,967,753.30 |
Depreciation and amortization
| Depreciation and amortization | 117,958,551.43 | 112,902,943.06 |
Advertising and promotion expenses
| Advertising and promotion expenses | 339,609,578.47 | 276,337,254.06 |
Lease and property management expenses
| Lease and property management expenses | 76,942,306.30 | 77,531,439.61 |
Others
| Others | 41,908,279.62 | 33,161,058.83 |
Total
| Total | 1,055,741,084.22 | 960,442,911.44 |
Other description:
65. R&D Expenses
| Item | Amount incurred in the current period | Amount incurred in previous period |
Employee Compensation
| Employee Compensation | 73,541,069.28 | 91,378,032.54 |
Depreciation and amortization
| Depreciation and amortization | 10,391,587.90 | 12,257,120.71 |
Material
| Material | 28,030,881.87 | 47,320,354.16 |
Other miscellaneous expenses
| Other miscellaneous expenses | 31,179,413.28 | 43,680,694.73 |
Total
| Total | 143,142,952.33 | 194,636,202.14 |
Other description
66. Financial Expenses
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Interest expenses
| Interest expenses | 24,015,659.66 | 32,891,514.25 |
Including: Interest expense on lease liabilities
| Including: Interest expense on lease liabilities | 11,651,258.00 | 11,671,553.10 |
Less: Interest revenue
| Less: Interest revenue | 57,012,846.01 | 69,863,134.66 |
Exchange gain or loss
| Exchange gain or loss | -5,279,738.42 | -16,974,769.11 |
Others
| Others | 834,384.93 | 1,151,962.83 |
Total
| Total | -37,442,539.84 | -52,794,426.69 |
Other description
67. Other Incomes
Unit: yuan
| Other sources of income | Amount incurred in the current period | Amount incurred in previous period |
Government Subsidies
| Government Subsidies | 22,618,569.68 | 33,571,024.65 |
Tax credits and deductions
| Tax credits and deductions | 14,664,363.42 | 13,109,669.86 |
Total
| Total | 37,282,933.10 | 46,680,694.51 |
68. Net Exposure Hedging
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Other description
69. Income from Changes in Fair Value
Unit: yuan
| Sources of gains from fair value change | Amount incurred in the current period | Amount incurred in previous period |
Structured deposits of bank financial products and trust productsIncome structured deposit
| Structured deposits of bank financial products and trust products Income structured deposit | 7,577,712.84 | 59,639,836.03 |
Total
| Total | 7,577,712.84 | 59,639,836.03 |
Other description:
70. Investment Income
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Long-term equity investment gains measured by employing the equitymethod
| Long-term equity investment gains measured by employing the equity method | -7,669,213.76 | 1,580,818.74 |
Investment income from purchasing financial products
| Investment income from purchasing financial products | 41,114,309.95 | 37,831,622.39 |
Total
| Total | 33,445,096.19 | 39,412,441.13 |
Other description
71. Credit Impairment Loss
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Loss on bad debts of accounts receivable
| Loss on bad debts of accounts receivable | -7,704,855.99 | 2,577,194.52 |
Loss on bad debts of other receivables
| Loss on bad debts of other receivables | -590,961.45 | 254,779.09 |
Total
| Total | -8,295,817.44 | 2,831,973.61 |
Other description
72. Assets Impairment Losses
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
I. Inventory falling price loss and impairment loss of contractperformance costs
| I. Inventory falling price loss and impairment loss of contract performance costs | -55,628,797.66 | -100,794,883.37 |
IV. Impairment loss of fixed assets
| IV. Impairment loss of fixed assets | -346,705.50 |
Total
| Total | -55,975,503.16 | -100,794,883.37 |
Other description:
73. Gains from Asset Disposal
Unit: yuan
| Source of income from disposal of assets | Amount incurred in the current period | Amount incurred in previous period |
Net gain or loss on disposal of long-term assets
| Net gain or loss on disposal of long-term assets | 1,930,800.28 | 5,324,751.10 |
74. Non-Operating Income
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
Government Subsidies
| Government Subsidies | 3,000.00 | 78,000.00 | 3,000.00 |
Non-current assets scrap gains
| Non-current assets scrap gains | 989,144.70 | 1,894,252.58 | 989,144.70 |
Income from compensation orfines
| Income from compensation or fines | 396,911.10 | 181,446.52 | 396,911.10 |
Others
| Others | 4,754,300.71 | 4,548,899.67 | 4,754,300.71 |
Total
| Total | 6,143,356.51 | 6,702,598.77 | 6,143,356.51 |
Other description:
75. Non-Operating Expenses
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period | Amounts recorded in the non-recurring gains and losses of the current period |
External donations
| External donations | 14,646.56 | 225,225.18 | 14,646.56 |
Loss on damage and scrap of non-current assets
| Loss on damage and scrap of non-current assets | 5,451,144.32 | 3,478,280.51 | 5,451,144.32 |
Compensation or amercementoutlay
| Compensation or amercement outlay | 285,600.58 | 326,411.19 | 285,600.58 |
Others
| Others | 466,768.55 | 877,031.15 | 466,768.55 |
Total
| Total | 6,218,160.01 | 4,906,948.03 | 6,218,160.01 |
Other description:
76. Income Tax Expenses
(1) Income tax expense table
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Current income tax expenses
| Current income tax expenses | 59,786,140.23 | 90,099,787.82 |
Deferred income tax expenses
| Deferred income tax expenses | 7,306,141.90 | 24,771,163.62 |
Adjustment of the previous annual income tax amount in thecurrent period
| Adjustment of the previous annual income tax amount in the current period | 58,768.11 | 15,507.71 |
Total
| Total | 67,151,050.24 | 114,886,459.15 |
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
| Item | Amount incurred in the current period |
Total profit
| Total profit | 473,381,277.83 |
Income tax expenses calculated at the appropriate/applicable tax rate
| Income tax expenses calculated at the appropriate/applicable tax rate | 71,007,191.67 |
Impact of different tax rates applied on subsidiaries
| Impact of different tax rates applied on subsidiaries | 8,146,455.87 |
Impact of income tax before adjustment
| Impact of income tax before adjustment | 58,768.11 |
The effect of non-taxable income
| The effect of non-taxable income | 1,153,518.30 |
Impact of non-deductible costs, expenses and losses
| Impact of non-deductible costs, expenses and losses | 4,906,297.24 |
Impact of deductible losses on unrecognized deferred income tax assets in the prior period
| Impact of deductible losses on unrecognized deferred income tax assets in the prior period | -3,622,457.25 |
Impact of temporary difference or deductible losses on unrecognized deferred income tax assets in thecurrent period
| Impact of temporary difference or deductible losses on unrecognized deferred income tax assets in the current period | 1,532,209.15 |
Impact of weighted deduction of R&D costs
| Impact of weighted deduction of R&D costs | -16,448,244.20 |
Effect of share-based payments in the current period
| Effect of share-based payments in the current period | 465,145.33 |
Impact of weighted deduction of wages for the disabled
| Impact of weighted deduction of wages for the disabled | -47,833.98 |
Income Tax Expenses
| Income Tax Expenses | 67,151,050.24 |
Other description:
77. Other Comprehensive Income
See Note 57, Other comprehensive income, for details
78. Cash Flow Statement Items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Deposit, margin and quality guarantee deposit received
| Deposit, margin and quality guarantee deposit received | 15,819,980.09 | 55,581,827.38 |
Interest income received
| Interest income received | 12,258,055.28 | 14,608,751.97 |
Government subsidies received
| Government subsidies received | 17,870,988.05 | 74,577,844.91 |
Others
| Others | 9,945,725.42 | 7,440,857.43 |
Total
| Total | 55,894,748.84 | 152,209,281.69 |
Explanation on other cash received related to operating activities:
Other cash paid related to operating activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Management and development costs paid in cash
| Management and development costs paid in cash | 79,791,733.60 | 96,646,768.64 |
Selling expenses paid in cash
| Selling expenses paid in cash | 136,729,766.24 | 129,897,821.41 |
Deposit, margin and quality guarantee deposit paid
| Deposit, margin and quality guarantee deposit paid | 20,215,667.66 | 15,415,236.51 |
Bank handling charge
| Bank handling charge | 834,384.92 | 1,151,962.83 |
Others
| Others | 109,911,168.01 | 107,076,248.17 |
Total
| Total | 347,482,720.43 | 350,188,037.56 |
Description of other cash paid related to operating activities
(2) Cash related to investing activities
Other cash received related to investment activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Significant cash received related to investing activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Other cash received related to investment activities: other cash paid related to investment activities.
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Significant cash paid for investing activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Description of other cash paid related to investment activities:
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
L/C loan deposit recovered
| L/C loan deposit recovered | 180,000,000.00 | 50,000,000.00 |
Total
| Total | 180,000,000.00 | 50,000,000.00 |
Description of other cash received related to financing activities:
Other cash paid related to financing activities
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Lease liability principal and interest paid on lease payments
| Lease liability principal and interest paid on lease payments | 113,647,443.24 | 106,678,094.74 |
Treasury stock repurchase paid
| Treasury stock repurchase paid | 194,981,835.21 |
Total
| Total | 308,629,278.45 | 106,678,094.74 |
Description of other cash paid related to financing activities:
Changes in various liabilities arising from financing activities
□ Applicable √ Not applicable
(4) Instructions for presenting cash flows on a net basis
| Item | Relevant facts | Basis for net presentation | Financial impact |
(5) Significant activities and financial impacts that do not involve current cash receipts and payments but affect the Company’s financial
status or may affect the Company’s cash flow in the future
79. Supplementary Information to the Statement of Cash Flows
(1) Supplementary Information to the Statement of Cash Flows
Unit: yuan
| Further Information | Current period amount | Previous period amount |
1. Reconciliation from net profits to cash flows from operating
activities
| 1. Reconciliation from net profits to cash flows from operating activities |
Net profit
| Net profit | 406,230,227.59 | 706,186,238.90 |
Plus: Provision for impairment of assets
| Plus: Provision for impairment of assets | 64,271,320.60 | 97,962,909.76 |
Depreciation of fixed assets, oil and gas assets and productive biologicalassets
| Depreciation of fixed assets, oil and gas assets and productive biological assets | 131,079,340.88 | 119,399,692.26 |
Depreciation of Right-of-use assets
| Depreciation of Right-of-use assets | 102,793,692.82 | 97,174,613.52 |
Amortization of intangible assets
| Amortization of intangible assets | 37,516,560.07 | 35,500,790.47 |
Amortization of long-term deferred expenses
| Amortization of long-term deferred expenses | 28,616,313.68 | 25,789,908.37 |
Losses from disposal of fixed assets, intangible assets and other long-term assets(gains expressed with “-”)
| Losses from disposal of fixed assets, intangible assets and other long-term assets (gains expressed with “-”) | -1,930,800.28 | -5,324,751.10 |
Loss on retirement of fixed assets (gains expressed with “-”)
| Loss on retirement of fixed assets (gains expressed with “-”) | 4,461,999.62 | 1,584,027.93 |
Loss from fair value change (gains expressed with “-”)
| Loss from fair value change (gains expressed with “-”) | -7,577,712.84 | -59,639,836.03 |
Financial expenses (gains expressed with “-”)
| Financial expenses (gains expressed with “-”) | -30,678,568.15 | -28,104,046.05 |
Investment losses (gains expressed with “-”)
| Investment losses (gains expressed with “-”) | -33,445,096.19 | -39,412,441.13 |
Decreased in deferred income tax assets (increase expressed with “-”)
| Decreased in deferred income tax assets (increase expressed with “-”) | 13,627,828.25 | 39,426,730.71 |
Increase in deferred income tax liabilities (decrease expressed with “-”)
| Increase in deferred income tax liabilities (decrease expressed with “-”) | -6,322,317.19 | -13,913,432.61 |
Decrease in inventories (increase expressed with “-”)
| Decrease in inventories (increase expressed with “-”) | -74,485,225.30 | 48,071,373.02 |
Decrease in operating receivables (increase expressed with “-”)
| Decrease in operating receivables (increase expressed with “-”) | -125,258,959.44 | 319,055,153.50 |
Increase in operating payables (decrease expressed with “-”)
| Increase in operating payables (decrease expressed with “-”) | -313,349,779.33 | -1,214,366,741.68 |
Others
| Others | -2,215,308.03 | 28,788,523.05 |
Net cash flow from operating activities
| Net cash flow from operating activities | 193,333,516.76 | 158,178,712.89 |
2. Significant investment and financing activities not involving cash
deposit and withdrawal:
| 2. Significant investment and financing activities not involving cash deposit and withdrawal: |
Conversion of debt into capital
| Conversion of debt into capital |
Convertible bonds due within 1 year
| Convertible bonds due within 1 year |
Fixed assets under financing lease
| Fixed assets under financing lease |
3. Net changes in cash and cash equivalents:
| 3. Net changes in cash and cash equivalents: |
Ending balance of cash
| Ending balance of cash | 3,893,999,245.96 | 4,236,440,239.16 |
Less: Beginning balance of cash
| Less: Beginning balance of cash | 4,677,340,782.45 | 4,370,821,958.17 |
Plus: Ending balance of cash equivalents
| Plus: Ending balance of cash equivalents |
Less: Ending balance of cash equivalents
| Less: Ending balance of cash equivalents |
Net increase in cash and cash equivalents
| Net increase in cash and cash equivalents | -783,341,536.49 | -134,381,719.01 |
(2) Net cash paid for obtaining subsidiaries in the current period
Unit: yuan
| Amount |
Cash or cash equivalents paid in the current period for business combinations occurred in the current period
| Cash or cash equivalents paid in the current period for business combinations occurred in the current period | 5,000,000.00 |
Including:
| Including: |
Zhejiang Honglan
| Zhejiang Honglan | 5,000,000.00 |
Less: Cash and cash equivalents held by the Company on the acquisition date
| Less: Cash and cash equivalents held by the Company on the acquisition date | 4,944,394.31 |
Including:
| Including: |
Zhejiang Honglan
| Zhejiang Honglan | 4,944,394.31 |
Including:
| Including: |
Net cash paid for obtaining subsidiaries
| Net cash paid for obtaining subsidiaries | 55,605.69 |
Other description:
(3) Net cash from disposal of subsidiaries in the current period
Unit: yuan
| Amount | Amount |
Including:
| Including: |
Including:
| Including: |
Including:
| Including: |
Other description:
(4) Composition of cash and cash equivalents
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
I. Cash
| I. Cash | 3,893,999,245.96 | 4,677,340,782.45 |
Including: cash on hand
| Including: cash on hand | 120,879.58 | 76,471.98 |
Bank deposit readily available for payment
| Bank deposit readily available for payment | 3,892,515,173.35 | 4,676,600,881.85 |
Other cash and cash equivalents readily availablefor payment
| Other cash and cash equivalents readily available for payment | 1,363,193.03 | 663,428.62 |
III. Balance of cash and cash equivalents at end of period
| III. Balance of cash and cash equivalents at end of period | 3,893,999,245.96 | 4,677,340,782.45 |
(5) The scope of use is limited but it is still classified as cash and cash equivalents
Unit: yuan
| Item | Current period amount | Previous period amount | Reasons for retaining cash and cash equivalents |
(6) Cash and cash equivalents that are not classified as Monetary funds
Unit: yuan
| Item | Current period amount | Previous period amount | Reasons for retaining cash and cash equivalents |
Other description:
(7) Description of other significant activities
80. Notes to Items in Statement of Owner’s Equity
State the name of “other” items and the amount of adjustment to the ending balance of previous year: N/A
81. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: yuan
| Item | Ending balance in foreign currency | Conversion exchange rate | Ending balance converted to RMB |
Cash and cash equivalents
| Cash and cash equivalents | 317,789,993.30 |
Including: USD
| Including: USD | 39,712,680.46 | 7.1268 | 283,024,331.10 |
EUR
| EUR | 932,995.10 | 7.6617 | 7,148,328.56 |
HKD
| HKD | 29,002,306.04 | 0.91268 | 26,469,824.68 |
Yen
| Yen | 59,912,564.00 | 0.00447 | 267,809.16 |
Mexican peso
| Mexican peso | 2,146,038.75 | 0.38574 | 827,812.99 |
Ringgit
| Ringgit | 34,373.96 | 1.50948 | 51,886.81 |
Accounts Receivable
| Accounts Receivable | 235,422,759.42 |
Including: USD
| Including: USD | 31,841,242.25 | 7.1268 | 226,926,165.30 |
| Item | Ending balance in foreign currency | Conversion exchange rate | Ending balance converted to RMB |
EUR
| EUR | 410,332.42 | 7.6617 | 3,143,843.90 |
HKD
| HKD | 5,864,695.67 | 0.91268 | 5,352,590.44 |
Yen
| Yen | 35,746.07 | 0.00447 | 159.78 |
Other Receivables
| Other Receivables | 534,443.84 |
Including: HKD
| Including: HKD | 553,244.00 | 0.91268 | 504,934.73 |
Mexican peso
| Mexican peso | 76,500.00 | 0.38574 | 29,509.11 |
Accounts Payable
| Accounts Payable | 3,888,280.53 |
Including: USD
| Including: USD | 104,246.40 | 7.1268 | 742,943.24 |
EUR
| EUR | 47,731.60 | 7.6617 | 365,705.20 |
HKD
| HKD | 158,869.16 | 0.91268 | 144,996.70 |
Mexican peso
| Mexican peso | 6,830,080.86 | 0.38574 | 2,634,635.39 |
Other Payables
| Other Payables | 31,148,306.90 |
Including: USD
| Including: USD | 4,187,002.00 | 7.1268 | 29,839,925.85 |
EUR
| EUR | 12,039.37 | 7.6617 | 92,242.04 |
HKD
| HKD | 1,297,263.52 | 0.91268 | 1,183,986.47 |
Mexican peso
| Mexican peso | 83,352.88 | 0.38574 | 32,152.54 |
Long-Term Loans
| Long-Term Loans |
Including: USD
| Including: USD |
EUR
| EUR |
HKD
| HKD |
Other description:
(2) Description of overseas operating entities, including for important overseas operating entities, the main overseas business place,
recording currency and selection basis shall be disclosed, and the reasons for changes in recording currency shall also be disclosed.
□ Applicable √ Not applicable
82. Leased
(1) The Company as the lessee:
√Applicable □ Not applicable
Variable lease payments that are not included in the measurement of the lease liabilities
√Applicable □ Not applicable
| Item | Current period amount (Yuan) |
Interest expense of lease liabilities
| Interest expense of lease liabilities | 11,651,258.00 |
Simplified treatment of short-term lease expenses included in the cost of related assets or current profitsand losses
| Simplified treatment of short-term lease expenses included in the cost of related assets or current profits and losses | 13,311,473.19 |
The simplified treatment of low-value asset lease expenses included in the relevant asset cost or currentprofit and loss(except for short-term lease expenses of low-value assets)
| The simplified treatment of low-value asset lease expenses included in the relevant asset cost or current profit and loss (except for short-term lease expenses of low-value assets) |
Variable lease payments excluded from the lease liability measurement, included in the cost of therelated asset, or in the current period’s profit or loss
| Variable lease payments excluded from the lease liability measurement, included in the cost of the related asset, or in the current period’s profit or loss | 7,888,188.30 |
Portion stemming from sale and leaseback transactions
| Portion stemming from sale and leaseback transactions |
Income from subleasing right-to-use assets
| Income from subleasing right-to-use assets | 1,090,129.38 |
Total cash outflow related to leases
| Total cash outflow related to leases | 134,847,104.73 |
Related gains and losses from sale and leaseback transactions
| Related gains and losses from sale and leaseback transactions |
Cash inflow and from sale and leaseback transactions
| Cash inflow and from sale and leaseback transactions |
Cash outflow from sale and leaseback transactions
| Cash outflow from sale and leaseback transactions |
Lease costs for short-term leases or low-value assets with simplified treatment
√Applicable □ Not applicable
See the chart above
Involvement in sale and leaseback transactions
(2) The Company’s role as lessor
Operating leases as lessor
□ Applicable √ Not applicable
Financial leases provided by the lessor
□ Applicable √ Not applicable
Undiscounted lease payments for each of the next five years
□ Applicable √ Not applicable
Reconciliation of undiscounted lease receipts and net lease investment
(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor
□ Applicable √ Not applicable
83. Data Resources
84. Others
VIII. Research and Development Expenditure
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
1. Research and Development Projects Eligible for Capitalization
| Item | Balance at the beginning of the period | Amount increased in the current period | Amount decreased in the current period | Closing Balance | ||
| Internal development expenditure | Others | Recognized as intangible assets | Transfer to current profit and loss | |||
Total
| Total |
Significant capitalized R&D projects
| Item | R&D progress | Estimated completion time | How economic benefits are expected to be generated | The point at which capitalization begins | Specific criteria for initiating capitalization |
Provision for impairment of development expenses
Unit: yuan
| Item | Balance at the beginning of the period | Increase in the current period | Decrease in the current period | Closing Balance | Impairment testing |
2. Important Outsourced Research Projects
| Project name | The manner in which economic benefits are expected to be generated | Judgment standards and specific basis for capitalization or expense |
Other description:
IX. Consolidation Scope Changes
1. Business Combination not under Common Control
(1) Business combination not under common control occurred in the current period
Unit: yuan
| Name of the acquiree | Time of equity acquisition | Cost of equity acquisition | Equity acquisition ratio | Method of equity acquisition | Acquisition date | Basis for determination of acquisition date | Income of the acquiree from the acquisition date to the end of the period | Net profit of the acquiree from the acquisition date to the end of the period | Cash flows of the acquired entity from the acquisition date to the end of the period |
ZhejiangHonglanTechnology Co., Ltd.
| Zhejiang Honglan Technology Co., Ltd. | April 01, 2024 | 6,071,163.00 | 57.00% | Share acquisition | April 01, 2024 | Acquisition of control | 0.00 | -202,062.62 | -650,470.32 |
Other description:
Longterm Medical, a subsidiary, signed the Investment Agreement on Zhejiang Honglan Technology Co., Ltd. with Huang Chenchu and YuanShenqin in February 2024, and Longterm Medical acquired 57% equity of Zhejiang Honglan Technology Co., Ltd. by way of capital increaseof RMB 6,071,163. The industrial and commercial change was completed on March 27, 2024, and the directors sent by the Company haveaccounted for the majority in the new board of directors. For the convenience of accounting, April 1, 2024 is determined as the purchase date,and it will be included in the scope of consolidated financial statements from April 1, 2024.
(2) Combination cost and goodwill
Unit: yuan
| Combination cost | Zhejiang Honglan |
-- Cash
| -- Cash | 6,071,163.00 |
-- Fair value of non-cash assets
| -- Fair value of non-cash assets |
- Fair value of debt issued or assumed
| - Fair value of debt issued or assumed |
--Fair value of equity securities issued
| --Fair value of equity securities issued |
--Fair value of contingent consideration
| --Fair value of contingent consideration |
--Fair value of the equity held prior to the purchase date on the purchase date
| --Fair value of the equity held prior to the purchase date on the purchase date |
-- Others
| -- Others |
Total combination cost
| Total combination cost | 6,071,163.00 |
Less: the share of the fair value of identifiable net assets acquired
| Less: the share of the fair value of identifiable net assets acquired | 3,857,742.84 |
The amount of goodwill/combination cost less than the share of the fair value of identifiable net assets acquired
| The amount of goodwill/combination cost less than the share of the fair value of identifiable net assets acquired | 2,213,420.16 |
Method for determining the fair value of consolidation costs:
Contingent consideration and explanation of its changes:
Main reasons for the formation of large amount of goodwill:
Other description:
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Unit: yuan
| Zhejiang Honglan |
| Fair value on the acquisition date | Book value on the acquisition date |
Assets:
| Assets: | 6,823,049.89 | 6,823,049.89 |
Cash and cash equivalents
| Cash and cash equivalents | 4,944,394.31 | 4,944,394.31 |
Accounts receivable payments
| Accounts receivable payments |
Inventory
| Inventory |
Fixed Assets
| Fixed Assets | 386,541.58 | 386,541.58 |
Intangible Assets
| Intangible Assets |
Other Receivables
| Other Receivables | 1,491,163.00 | 1,491,163.00 |
Other Current Assets
| Other Current Assets | 951.00 | 951.00 |
Debt:
| Debt: | 55,080.00 | 55,080.00 |
Loan
| Loan |
Account payable payments
| Account payable payments | 18,600.00 | 18,600.00 |
Deferred income tax liabilities
| Deferred income tax liabilities |
Contract Liabilities
| Contract Liabilities | 3,000.00 | 3,000.00 |
Payroll Payable
| Payroll Payable | 33,480.00 | 33,480.00 |
Net assets
| Net assets | 6,767,969.89 | 6,767,969.89 |
Less: Minority equity
| Less: Minority equity | 2,910,227.05 | 2,910,227.05 |
Net assets acquired
| Net assets acquired | 3,857,742.84 | 3,857,742.84 |
Determination method of fair value of identifiable assets and liabilities:
Contingent liabilities of the acquiree incurred in business combination
Other description:
(4) Gains or losses arising from remeasurement of equity held prior to the acquisition date at fair value
Whether there are transactions that realize the business combination step by step through multiple transactions and obtain control right duringthe reporting period
□Yes √No
(5) Relevant description of the combination consideration or the fair value of the identifiable assets and liabilities of the acquiree that
cannot be reasonably determined on the acquisition date or at the end of current period of the combination
(6) Other description
2. Business Combination under Common Control
(1) Business combination under common control occurred in the current period
Unit: yuan
| Name of merged party | Proportion of equity obtained in business combination | Basis of business combination under common control | Merger date | Basis for determination of merger date | Income of the combined party from the beginning of current period to the date of combination | Net profit of the combined party from the beginning of current period to the date of combination | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other description:
(2) Combination cost
Unit: yuan
Combination cost-- Cash
-- Cash-- Book value of non-cash assets
-- Book value of non-cash assets-- Book value of debt issued or assumed
-- Book value of debt issued or assumed-- Book value of equity securities issued
-- Book value of equity securities issued-- Contingent consideration
-- Contingent consideration
Contingent consideration and explanation of its changes:
Other description:
(3) Book value of assets and liabilities of the combined party on the date of combination
Unit: yuan
| Merger date | End of previous period |
Assets:
| Assets: |
Cash and cash equivalents
| Cash and cash equivalents |
Accounts receivable payments
| Accounts receivable payments |
Inventory
| Inventory |
Fixed Assets
| Fixed Assets |
Intangible Assets
| Intangible Assets |
Debt:
| Debt: |
Loan
| Loan |
Account payable payments
| Account payable payments |
Net assets
| Net assets |
Less: Minority equity
| Less: Minority equity |
Net assets acquired
| Net assets acquired |
Contingent liabilities of the combined party incurred in business combination
Other description:
3. Reverse Purchase
Basic information of transaction, basis of transaction forming reverse purchase, whether the assets and liabilities retained by the listed companyconstitute business and their basis, determination of combination cost, amount and calculation of adjusted equity in accordance with equitytransaction:
4. Disposal of Subsidiary
Are there any transactions or events during this period that lead to the loss of control of subsidiaries?
□Yes √No
Whether there is a situation that the investment in subsidiaries is disposed step by step through multiple transactions and the control right islost in the current period
□Yes √No
5. Change of Merger Scope for Other Reasons
Explain the changes in the scope of combination caused by other reasons (such as the establishment of new subsidiaries, liquidation ofsubsidiaries, etc.) and relevant information:
The subsidiary Winner Medical (Wuhan) established Winner Medical Biomedical Technology (Wuhan) Co., Ltd. on April 30, 2024, accountingfor 67% of the shares;
Purcotton Wuhan, a subsidiary, established Purecotton Agricultural Technology (Wuhan) Co., Ltd. on May 14, 2024, accounting for 58% ofthe shares.
6. Others
None
X. Interests in Other Entities
1. Interests in A Subsidiary
(1) Composition of enterprise group
Unit: yuan
| Subsidiary name | Registered capital | Main operation site | Registration place | Business nature | Shareholding ratio | Way of obtaining | |
| Direct | Indirect | ||||||
ShenzhenPurcotton
| Shenzhen Purcotton | 130,000,000.00 | Shenzhen City, Guangdong Province | Shenzhen City, Guangdong Province | Sale of Purcotton products | 100.00% | Establishment |
BeijingPurcotton
| Beijing Purcotton | 3,000,000.00 | Beijing | Beijing | Sale of Purcotton products | 100.00% | Establishment |
GuangzhouPurcotton
| Guangzhou Purcotton | 1,000,000.00 | Guangzhou City, Guangdong Province | Guangzhou City, Guangdong Province | Sale of Purcotton products | 100.00% | Establishment |
ShanghaiPurcotton
| Shanghai Purcotton | 3,000,000.00 | Shanghai | Shanghai | Sale of Purcotton products | 100.00% | Establishment |
QianhaiPurcotton
| Qianhai Purcotton | 10,000,000.00 | Shenzhen City, Guangdong Province | Shenzhen City, Guangdong Province | Sale of Purcotton products | 100.00% | Establishment |
Winner Medical(Huanggang)
| Winner Medical (Huanggang) | 259,459,200.00 | Huanggang City, Hubei Province | Huanggang City, Hubei Province | Production and sales of pure cotton spunlace non-woven fabric, medical consumables and Purcotton products | 100.00% | Business Combination under Common Control |
Winner Medical(Jingmen)
| Winner Medical (Jingmen) | 23,000,000.00 | Jingmen City, Hubei Province | Jingmen City, Hubei Province | Production and sales of medical consumables and Purcotton products | 100.00% | Business Combination under Common Control |
Winner Medical(Chongyang)
| Winner Medical (Chongyang) | 28,550,000.00 | Chongyang County, Hubei Province | Chongyang County, Hubei Province | Production and sales of medical consumables | 100.00% | Business Combination under Common Control |
Winner Medical(Jiayu)
| Winner Medical (Jiayu) | 233,040,000.00 | Jiayu County, Hubei Province | Jiayu County, Hubei Province | Production and sales of medical consumables and Purcotton products | 100.00% | Business Combination under Common Control |
Winner Medical(Yichang)
| Winner Medical (Yichang) | 12,413,668.87 | Zhijiang City, Hubei Province | Zhijiang City, Hubei Province | Production and sales of medical gray cloth | 100.00% | Business Combination under Common Control |
| Subsidiary name | Registered capital | Main operation site | Registration place | Business nature | Shareholding ratio | Way of obtaining | |
| Direct | Indirect | ||||||
Winner Medical(Tianmen)
| Winner Medical (Tianmen) | 37,670,000.00 | Tianmen City, Hubei Province | Tianmen City, Hubei Province | Production and sales of pure cotton spunlace non-woven fabric and Purcotton products | 100.00% | Business Combination under Common Control |
Winner Medical(Hong Kong)
| Winner Medical (Hong Kong) | 897,570.00 | Hong Kong | Hong Kong | Sales of medical consumables and healthy living consumer goods | 60.00% | Business Combination under Common Control |
Winner(Huanggang)Cotton
| Winner (Huanggang) Cotton | 18,738,690.96 | Huanggang City, Hubei Province | Huanggang City, Hubei Province | Cotton trade | 100.00% | Business Combination under Common Control |
Winner MedicalMalaysia
| Winner Medical Malaysia | 4,943,266.40 | Malaysia | Malaysia | There is no actual business operation | 100.00% | Business Combination not under Common Control |
Winner Medical(Heyuan)
| Winner Medical (Heyuan) | 100,000,000.00 | Heyuan City, Guangdong Province | Heyuan City, Guangdong Province | There is no actual business operation at present | 100.00% | Establishment |
Winner Medical(Wuhan)
| Winner Medical (Wuhan) | 400,000,000.00 | Wuhan City, Hubei Province | Wuhan City, Hubei Province | Production and sterilization of pure cotton spunlace non-woven fabric and Purcotton products | 100.00% | Establishment |
PureH2B
| PureH2B | 150,000,000.00 | Shenzhen City, Guangdong Province | Shenzhen City, Guangdong Province | Sales of personal care and other products | 100.00% | Establishment |
Purunderwear
| Purunderwear | 5,000,000.00 | Shenzhen City, Guangdong Province | Shenzhen City, Guangdong Province | Sales of Cotton Lining products | 100.00% | Establishment |
HuanggangPurcotton
| Huanggang Purcotton | 10,000,000.00 | Huanggang City, Hubei Province | Huanggang City, Hubei Province | Sale of Purcotton products | 100.00% | Establishment |
Winner Medical(Foshan)
| Winner Medical (Foshan) | 1,000,000.00 | Foshan City, Guangdong Province | Foshan City, Guangdong Province | There is no actual business operation at present | 100.00% | Establishment |
ZhejiangLongterm
| Zhejiang Longterm | 50,000,000.00 | Huzhou, Zhejiang | Huzhou, Zhejiang | Production and sales of medical consumables | 55.00% | Business Combination not under Common Control |
Hangzhou Shengyi
| Hangzhou Shengyi | 5,000,000.00 | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Other technology promotion services | 55.00% | Business Combination not under Common Control |
Xi’an Longtemu
| Xi’an Longtemu | 5,000,000.00 | Xi’an, Shaanxi | Xi’an, Shaanxi | Engineering technical research and experimental development | 55.00% | Business Combination not under Common Control |
Deqing Longterm
| Deqing Longterm | 2,000,000.00 | Huzhou, Zhejiang | Huzhou, Zhejiang | Manufacturing of medical instruments, equipment and device | 55.00% | Business Combination not under Common Control |
United StatesLongterm
| United States Longterm | US | US | Manufacturing of medical instruments, equipment and device | 55.00% | Business Combination not under Common Control |
Guilin Latex
| Guilin Latex | 86,600,997.00 | Xiufeng District, Guilin City, Guangxi Zhuang Autonomous Region | Xiufeng District, Guilin City, Guangxi Zhuang Autonomous Region | Rubber products industry | 91.74% | Business Combination not under Common Control |
Winner Medical(Hunan)
| Winner Medical (Hunan) | 44,000,111.00 | Changde, Hunan | Changde, Hunan | Production and sales of medical consumables | 68.70% | Business Combination not under Common Control |
Ruian MedicalDevice
| Ruian Medical Device | 2,000,000.00 | Changsha, Hunan | Changsha, Hunan | Engineering technical research and experimental development | 68.70% | Business Combination not under Common Control |
Junjian Medical
| Junjian Medical | 20,120,000.00 | Shenzhen City, Guangdong Province | Shenzhen City, Guangdong Province | Sales of medical consumables | 100.00% | Business Combination not under Common Control |
Mexico Longtai
| Mexico Longtai | 73,629,872.52 | Mexico | Mexico | Production and sales of medical consumables | 55.00% | Establishment |
| Subsidiary name | Registered capital | Main operation site | Registration place | Business nature | Shareholding ratio | Way of obtaining | |
| Direct | Indirect | ||||||
ShanghaiHongsong
| Shanghai Hongsong | 2,000,000.00 | Shanghai | Shanghai | Sales of medical consumables | 60.00% | Establishment |
Jinzhou Latex
| Jinzhou Latex | 87,500,000.00 | Jingzhou City, Hubei Province | Jingzhou City, Hubei Province | Production and sale of rubber products | 91.74% | Business Combination not under Common Control |
Wuhan Purcotton
| Wuhan Purcotton | 20,000,000.00 | Wuhan City, Hubei Province | Wuhan City, Hubei Province | Sale of Purcotton products | 100.00% | Establishment |
Hong KongPurcotton
| Hong Kong Purcotton | Hong Kong | Hong Kong | Sale of Purcotton products | 100.00% | Establishment |
Pan-China (H.K.)
| Pan-China (H.K.) | 860,840.00 | Hong Kong | Hong Kong | There is no actual business operation at present | 100.00% | Establishment |
Wuhan DigitalTechnology
| Wuhan Digital Technology | 500,000.00 | Wuhan City, Hubei Province | Wuhan City, Hubei Province | Software development and sales | 100.00% | Establishment |
Zhejiang Honglan
| Zhejiang Honglan | 10,651,163.00 | Ouhai District, Wenzhou City, Zhejiang Province | Ouhai District, Wenzhou City, Zhejiang Province | Software development and technical services | 55.00% | Business Combination not under Common Control |
Winner Medical
| Winner Medical | 5,000,000.00 | Wuhan City, Hubei Province | Wuhan City, Hubei Province | Medical research and experimental development | 67.00% | Establishment |
PurecottonAgriculturalTechnology
| Purecotton Agricultural Technology | 5,000,000.00 | Wuhan City, Hubei Province | Wuhan City, Hubei Province | Research and experimental development | 58.00% | Establishment |
Difference between the shareholding ratio and the voting right ratio in the subsidiary:
Basis for holding half or less of the voting rights but still controlling the invested entity, and holding more than half of the voting rights but notcontrolling the invested entity:
For the important structured entity included in the combination scope, the control basis is as follows:
Basis for determining whether the company is an agent or a principal:
Other description:
(2) Important non-wholly owned subsidiary
Unit: yuan
| Subsidiary name | Minority shareholding ratio | Current profits and losses attributable to minority shareholders | Current dividends declared to minority shareholders | Ending balance of minority equity |
Difference between the shareholding ratio and the voting right ratio of the minority shareholders of the subsidiary:
Other description:
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
| Subsidiary name | Closing Balance | Balance at the beginning of the period | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Unit: yuan
| Subsidiary name | Amount incurred in the current period | Amount incurred in previous period | ||||||
| Revenue | Net profit | Total comprehensive income | Cash flow from financing activities | Revenue | Net profit | Total comprehensive income | Cash flow from financing activities | |
Other description:
(4) Major restrictions on the use of enterprise group assets and the settlement of enterprise group debts
(5) Financial or other support provided to structured entity included in the consolidated financial statements
Other description:
2. Transactions in which the Share of Ownership Interest in A Subsidiary Changes and the Subsidiary is Still Controlled
(1) Description of changes in the owner’s equity share in the subsidiary
(2) Impact of transactions on minority shareholders’ equity and owners’ equities attributable to the owners of parent company
Unit: yuan
Purchase cost / disposal consideration-- Cash
-- Cash-- Fair value of non-cash assets
-- Fair value of non-cash assetsTotal purchase cost / disposal consideration
Total purchase cost / disposal considerationLess: The share of the net asset of a subsidiary calculated based on the proportion of equity acquired/disposed
Less: The share of the net asset of a subsidiary calculated based on the proportion of equity acquired/disposedBalance
BalanceIncluding: Capital reserve adjusted
Including: Capital reserve adjustedSurplus reserve adjusted
Surplus reserve adjustedUndistributed profit adjusted
Undistributed profit adjusted
Other description
3. Equity in Joint Venture Arrangement or Joint Venture
(1) Important cooperative enterprises or joint ventures
| Name of cooperative enterprise or joint venture | Main operation site | Registration place | Business nature | Shareholding ratio | Accounting treatment method of investment in cooperative enterprises or joint ventures | |
| Direct | Indirect | |||||
Difference between the shareholding ratio and the voting right ratio in the cooperative enterprise or joint venture:
Basis for holding less than 20% of the voting rights but having a significant impact, or holding 20% or more of the voting rights but not havinga significant impact:
(2) Major Financial Information about Important Cooperative Enterprises
Unit: yuan
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in previous period |
Current assets
| Current assets |
Including: Cash and cash equivalents
| Including: Cash and cash equivalents |
Non-current assets
| Non-current assets |
Total assets
| Total assets |
Current liabilities
| Current liabilities |
Non-current liabilities
| Non-current liabilities |
Total liabilities
| Total liabilities |
Minority equity
| Minority equity |
Attributable to the parent company shareholders’ equity
| Attributable to the parent company shareholders’ equity |
Share of net assets by shareholding ratio
| Share of net assets by shareholding ratio |
Adjustment items
| Adjustment items |
-- Goodwill
| -- Goodwill |
--Unrealized profit of internal transaction
| --Unrealized profit of internal transaction |
-- Others
| -- Others |
Book value of equity investments in joint ventures
| Book value of equity investments in joint ventures |
Fair value of equity investments in joint ventures with publiclyquoted prices
| Fair value of equity investments in joint ventures with publicly quoted prices |
Revenue
| Revenue |
Financial Expenses
| Financial Expenses |
Income Tax Expenses
| Income Tax Expenses |
Net profit
| Net profit |
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in previous period |
Net profit of discontinued operation
| Net profit of discontinued operation |
Other Comprehensive Income
| Other Comprehensive Income |
Total comprehensive income
| Total comprehensive income |
Dividends received from joint ventures in current year
| Dividends received from joint ventures in current year |
Other description
(3) Major Financial Information About Important Jointly Operated Enterprises
Unit: yuan
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in previous period |
Current assets
| Current assets |
Non-current assets
| Non-current assets |
Total assets
| Total assets |
Current liabilities
| Current liabilities |
Non-current liabilities
| Non-current liabilities |
Total liabilities
| Total liabilities |
Minority equity
| Minority equity |
Attributable to the parent company shareholders’ equity
| Attributable to the parent company shareholders’ equity |
Share of net assets by shareholding ratio
| Share of net assets by shareholding ratio |
Adjustment items
| Adjustment items |
-- Goodwill
| -- Goodwill |
--Unrealized profit of internal transaction
| --Unrealized profit of internal transaction |
-- Others
| -- Others |
Book value of equity investments in cooperative enterprises
| Book value of equity investments in cooperative enterprises |
Fair value of equity investments in cooperative enterpriseswith publicly quoted prices
| Fair value of equity investments in cooperative enterprises with publicly quoted prices |
Revenue
| Revenue |
Net profit
| Net profit |
Net profit of discontinued operation
| Net profit of discontinued operation |
Other Comprehensive Income
| Other Comprehensive Income |
Total comprehensive income
| Total comprehensive income |
Dividends received from cooperative enterprises in currentyear
| Dividends received from cooperative enterprises in current year |
Other description
(4) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
| Ending balance/amount incurred in the current period | Beginning balance/amount incurred in previous period |
Cooperative enterprise:
| Cooperative enterprise: |
Total number of following items by shareholding ratio
| Total number of following items by shareholding ratio |
- Joint venture:
| - Joint venture: |
Total book value of investment
| Total book value of investment | 441,256,304.67 | 23,328,454.74 |
Total number of following items by shareholding ratio
| Total number of following items by shareholding ratio |
-- Net profit
| -- Net profit | -7,669,213.76 | 1,580,818.75 |
-- Other comprehensive income
| -- Other comprehensive income | -27,725.77 |
-- Total comprehensive income
| -- Total comprehensive income | -7,696,939.53 | 1,580,818.75 |
Other description
This year, a newly-added joint-stock company failed to obtain the fair value of the assets and liabilities of the associated company on theacquisition date, so it did not disclose the main financial data.
(5) Significant restrictions on the ability of cooperative enterprises and joint ventures to transfer funds to the Company
(6) Excess losses of cooperative enterprise or joint venture
Unit: yuan
| Name of cooperative enterprise or joint venture | Accumulated unrecognized losses in the previous period | Unrecognized loss in the current period (or net profit shared in the current period) | Accumulated unrecognized losses at the end of current period |
Other description
(7) Unconfirmed commitments related to investment in cooperative enterprise
(8) Contingent liabilities related to investment in cooperative enterprise or joint venture
4. Important Pooling of Interests
| Name of joint operation | Main operation site | Registration place | Business nature | Shareholding ratio / shares enjoyed | |
| Direct | Indirect | ||||
Difference between the shareholding ratio or share enjoyed and the voting right ratio in joint operation:
If the joint operation is a separate entity, it shall be classified as the basis of joint operation:
Other description
5. Equity in the Structured Entity that is not Included in the Consolidated Financial Statements
Description of structured entity not included in the consolidated financial statements
6. Others
XI. Government Subsidies
1. Government Subsidies Recognized Based on the Receivable Amount at the End of the Reporting Period
□ Applicable √ Not applicable
Reasons for the failure to receive the estimated amount of government subsidy at the estimated time
□ Applicable √ Not applicable
2. Projects Involving Government Subsidies
√Applicable □ Not applicable
Unit: yuan
| Accounting subject | Balance at the beginning of the period | Amount of additional subsidy in the current period | Amount included in current non-revenue | Amounts transferred to other earnings during the period | Other changes during the period | Closing Balance | Asset/income related |
DeferredIncome
| Deferred Income | 121,649,364.97 | 2,281,800.00 | 7,406,066.45 | 1 | 16,525,098.52 | Government subsidies related to assets |
3. Government Subsidies Included in Current Profit and Loss:
√Applicable □ Not applicable
Unit: yuan
| Accounting subject | Amount incurred in the current period | Amount incurred in previous period |
Other Incomes
| Other Incomes | 22,618,569.68 | 33,571,024.65 |
Non-Operating Income
| Non-Operating Income | 3,000.00 | 78,000.00 |
Other description
XII. Risks Associated with Financial Instruments
1. Types of Risks Arising from Financial Instruments
(I) Types of Risks Arising from Financial Instruments
The Company is exposed to various financial risks in the process of operation: credit risk, liquidity risk and market risk, including exchangerate risk, interest rate risk and other price risk. The above financial instruments and the risk management policies adopted by the Company tomitigate these risks are described below:
The Board of Directors is responsible for planning and establishing the Company’s risk management structure, formulating the Company’srisk management policies and relevant guidelines, and supervising the implementation of risk management measures. The Company hasformulated risk management policies to identify and analyze the risks to which the Company is exposed. These risk management policiesspecify specific risks, covering various aspects such as market risk, credit risk and liquidity risk management. The Company regularly evaluatesthe changes in the market environment and the Company’s operating activities to determine whether to update the risk management policiesand systems. The risk management of the Company is carried out by the Risk Management Committee in accordance with the policies approvedby the Board of Directors. The Risk Management Committee identifies, evaluates, and avoids related risks through close cooperation withother business departments of the Company. The internal audit department of the Company conducts regular audit on the risk managementcontrol and procedures, and reported the audit results to the Audit Committee of the Company.
The Company disperses financial instrument risks through appropriate diversified investments and business portfolios, and reduce risksconcentrated in a single industry, specific region, or specific counterparty by formulating corresponding risk management policies.
1. Credit risk
Credit risk refers to the risk of financial loss to the Company due to the failure of the counterparty to fulfill its contractual obligations.
The Company’s credit risk mainly arises from cash and cash equivalents, notes receivable, accounts receivable, receivables financing, contractassets, other receivables, debt investment, other debt investments and financial guarantee contracts, as well as debt instrument investments andderivative financial assets measured at fair value through profit or loss and not included in the impairment assessment scope. On the balancesheet date, the book value of the Company’s financial assets represents its maximum credit risk exposure.
The Company’s cash and cash equivalents are mainly deposited in state-owned banks and other large and medium-sized listed banks with highcredit rating. The Company believes that there is no significant credit risk and almost cannot cause significant losses caused by bank default.
In addition, for notes receivable, accounts receivable, receivables financing, contractual assets and other receivables, the Company makesrelevant policies to control credit risk exposure. The Company evaluates the customers’ credit qualification and sets the corresponding creditperiod based on the customer’s financial status, the possibility of obtaining guarantee from a third party, credit records and other factors suchas current market conditions. The Company will regularly monitor customers’ credit records. For customers with poor credit records, theCompany would urge payment in writing, shorten the credit period or cancel the credit period, etc., to ensure that the overall credit risk of theCompany is under control.
2. Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs the obligation of settlement by cash payment or other financialassets.
The Company’s policy is to ensure that there is sufficient cash to pay the debt due. Liquidity risk is centrally controlled by the FinancialDepartment of the Company. By monitoring cash balances, securities that can be turned into cash at any time, and rolling forecasting of cashflows over the next 12 months, the Finance Department ensures that the Company has sufficient funds to repay its debts under all reasonableprojections, at the same time, it continuously monitors the compliance of the provisions of the loan agreements, and obtained commitmentsfrom major financial institutions to provide sufficient standby capital to meet short-term and long-term capital needs.
The Company’s various financial liabilities are shown as follows in terms of undiscounted contract cash flows on maturity dates:
Unit: yuan
| Item | Closing Balance | |||||
| Immediate repayment | Within 1 year | 1-2 years | 2-5 years | More than 5 years | Total undiscounted contract amount | |
Short-Term Loans
| Short-Term Loans | 1,170,327,194.78 | 1,170,327,194.78 |
Notes Payable
| Notes Payable | 363,977,108.89 | 363,977,108.89 |
Accounts Payable
| Accounts Payable | 832,423,316.30 | 832,423,316.30 |
Other Payables
| Other Payables | 727,222,395.14 | 727,222,395.14 |
Non-currentliabilities due withina year
| Non-current liabilities due within a year | 373,940,213.86 | 373,940,213.86 |
Lease Liabilities
| Lease Liabilities | 139,353,058.45 | 149,223,550.98 | 15,595,936.38 | 304,172,545.81 |
Total
| Total | 3,264,583,035.47 | 139,353,058.45 | 149,223,550.98 | 15,595,936.38 | 3,568,755,581.28 |
Unit: yuan
| Item | Closing balance of the previous year | |||||
| Immediate repayment | Within 1 year | 1-2 years | 2-5 years | More than 5 years | Total undiscounted contract amount | |
Short-Term Loans
| Short-Term Loans | 1,493,238,955.00 | 1,493,238,955.00 |
Notes Payable
| Notes Payable | 315,902,844.15 | 315,902,844.15 |
Accounts Payable
| Accounts Payable | 1,116,802,220.38 | 1,116,802,220.38 |
Other Payables
| Other Payables | 591,310,917.61 | 591,310,917.61 |
Non-currentliabilities duewithin a year
| Non-current liabilities due within a year | 223,426,826.45 | 223,426,826.45 |
Long-Term Loans
| Long-Term Loans | 170,000,000.00 | 170,000,000.00 |
Lease Liabilities
| Lease Liabilities | 152,725,191.59 | 160,706,193.96 | 332,663,417.84 |
Total
| Total | 3,740,681,763.59 | 322,725,191.59 | 160,706,193.96 | 19,232,032.29 | 4,243,345,181.43 |
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments fluctuates due to the changeof market price, including exchange rate risk, interest rate risk and other price risk.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments fluctuates due to the change of market interestrate.
The interest bearing financial instruments with fixed and floating interest rates expose the Company to fair value interest rate risk and cashflow interest rate risk, respectively. The Company determines the ratio of fixed rate and floating rate instruments based on the marketenvironment, and maintains an appropriate combination of fixed rate and floating rate instruments through regular review and monitoring. Ifnecessary, the Company will use interest rate swap instruments to hedge interest rate risk.
On June 30, 2024, if other variables remain unchanged, and the borrowing rate at the floating rate rises or falls by 100 base points, theCompany’s net profit will decrease or increase by RMB 1,768,251.19. The management considers that 100 basis points reasonably reflects areasonable range of possible changes in interest rate over the next year.
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial instruments fluctuates due to the change of foreignexchange rate.
The Company continuously monitors foreign currency transactions and the scale of foreign currency assets and liabilities to minimize foreignexchange risks. In addition, the Company may enter into forward foreign exchange contracts or currency exchange contracts to achieve thepurpose of avoiding the exchange rate risk. The Company has not signed any forward foreign exchange contracts or currency swap contractsin the current period and the previous period.
The exchange rate risk faced by the Company mainly comes from financial assets and financial liabilities denominated in USD. The amountsof foreign currency financial assets and foreign currency financial liabilities converted into RMB are listed as follows:
Unit: yuan
| Item | Closing Balance | ||||||
| USD | EUR | HKD | Yen | Mexican peso | Ringgit | Total | |
| Foreign currency financial assets |
Cash and cashequivalents
| Cash and cash equivalents | 283,024,331.10 | 7,148,328.56 | 26,469,824.68 | 267,809.16 | 827,812.99 | 51,886.81 | 317,789,993.30 |
AccountsReceivable
| Accounts Receivable | 226,926,165.30 | 3,143,843.90 | 5,352,590.44 | 159.78 | 235,422,759.42 |
OtherReceivables
| Other Receivables | 0.00 | 0.00 | 504,934.73 | 29,509.11 | 534,443.84 |
Subtotal
| Subtotal | 509,950,496.40 | 10,292,172.46 | 32,327,349.85 | 267,968.94 | 857,322.10 | 51,886.81 | 553,747,196.56 |
Foreigncurrencyfinancialliabilities
| Foreign currency financial liabilities |
AccountsPayable
| Accounts Payable | 742,943.24 | 365,705.20 | 144,996.70 | 2,634,635.39 | 3,888,280.53 |
Other Payables
| Other Payables | 29,839,925.85 | 92,242.04 | 1,183,986.47 | 32,152.54 | 31,148,306.90 |
Subtotal
| Subtotal | 30,582,869.09 | 457,947.24 | 1,328,983.17 | 0.00 | 2,666,787.93 | 0.00 | 35,036,587.43 |
Net amount
| Net amount | 479,367,627.31 | 9,834,225.22 | 30,998,366.68 | 267,968.94 | -1,809,465.83 | 51,886.81 | 518,710,609.13 |
On June 30, 2024, with all other variables held constant, if RMB appreciates or depreciates by 5% against the above foreign currencies, theCompany will increase or decrease its net profit by RMB 25,935,530.46. Management considers that 5% is a reasonable reflection of thereasonable range of possible changes in RMB against USD.
(3) Other price risks
Other price risks refer to the risks that the fair value or future cash flows of financial instruments fluctuate due to the changes in market pricesother than exchange rate risk and interest rate risk.
2. Hedge
(1) The Company carries out hedging business for risk management
□ Applicable √ Not applicable
(2) The Company carries out qualified hedging business and applies hedging accounting
Unit: yuan
| Item | Book value related to hedged items and hedging instruments | Cumulative fair value hedging adjustments of hedged items included in recognized carrying amounts | Some sources of hedging effectiveness and ineffectiveness | The impact of hedge accounting on a company’s financial statements |
Hedging risk type
Hedging risk typeHedge type
Hedge type
Other description
(3) The Company engages in hedging activities for risk management purposes and anticipates achieving risk management objectives but
does not apply hedge accounting
□ Applicable √ Not applicable
3. Financial Assets
(1) Transfer method classification
√Applicable □ Not applicable
Unit: yuan
| Transfer method | Nature of financial assets transferred | Amount of financial assets transferred | De-recognition | Basis for judgment on termination of confirmation |
Billendorsement
| Bill endorsement | Notes Receivable | 9,781,329.43 | Not terminated | Retain substantially all of its risks and rewards, including default risks associated therewith |
Billendorsement
| Bill endorsement | Notes Receivable | 69,732,163.99 | De-recognition | Substantially all risks and rewards have been transferred |
Total
| Total | 79,513,493.42 |
(2) Financial assets derecognized as a result of a transfer
√Applicable □ Not applicable
Unit: yuan
| Item | Methods of transferring financial assets | Amount of financial assets derecognized | Gains or losses related to derecognition |
Bill endorsement
| Bill endorsement | Notes Receivable | 69,732,163.99 |
Total
| Total | 69,732,163.99 |
(3) Asset transfer financial assets that continue to be involved
□ Applicable √ Not applicable
Other description
XIII. Fair Value Disclosure
1. Ending Fair Value of Assets and Liabilities Measured with Fair Value
Unit: yuan
| Item | Closing fair value | |||
| Measurement of fair value at first level | Measurement of fair value at second level | Measurement of fair value at third level | Total | |
I. Continuous fair value measurement
| I. Continuous fair value measurement | -- | -- | -- | -- |
(I) Tradable Financial Assets
| (I) Tradable Financial Assets | 1,389,316,876.93 | 1,135,319,376.62 | 2,524,636,253.55 |
1. Financial assets measured at fair value
of which the changes are included incurrent profit and loss
| 1. Financial assets measured at fair value of which the changes are included in current profit and loss | 1,389,316,876.93 | 1,135,319,376.62 | 2,524,636,253.55 |
(3) Derivative Financial Assets
| (3) Derivative Financial Assets | 1,389,316,876.93 |
(4) Others
| (4) Others | 1,135,319,376.62 | 1,135,319,376.62 |
◆ Receivables financing
| ◆ Receivables financing | 36,356,429.51 | 36,356,429.51 |
◆ Other non-current financial assets
| ◆ Other non-current financial assets | 70,000,000.00 | 70,000,000.00 |
Total assets continuously measured atfair value
| Total assets continuously measured at fair value | 1,425,673,306.44 | 1,205,319,376.62 | 2,630,992,683.06 |
II. Non-continuous fair valuemeasurement
| II. Non-continuous fair value measurement | -- | -- | -- | -- |
2. Continuous and Non-Continuous Measurement Items of Fair Value at First Level and Recognition Basis for Market Price
3. Continuous and Non-Continuous Measurement Items of Fair Value at Second Level, Qualitative and Quantitative Information
on Valuation Techniques Adopted and Important Parameters
4. Continuous and Non-Continuous Measurement Items of Fair Value at Third Level, Qualitative and Quantitative Informationon Valuation Techniques Adopted and Important Parameters
5. Continuous Measurement Items of Fair Value at Third Level, Adjustment Information between Opening and Closing BookValue and Sensitivity Analysis of Unobservable Parameters
6. For Continuous Measurement Items of Fair Value, If There is a Conversion between Different Levels in the current period, theReasons for the Conversion and the Policies for Determining the Conversion Time Point
7. Valuation Technology Change and Reason of Change in the current period
8. Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value
9. Others
XIV. Related Parties and Connected Transactions
1. Parent Company of the Company
| Parent company name | Registration place | Business nature | Registered capital | Shareholding ratio of the parent company in the Company | Voting right ratio of the parent company in the Company |
Winner Group Limited
| Winner Group Limited | Cayman Islands | Equity investment and management business | HKD 1,143,000.00 | 69.12% | 69.12% |
Parent company of the Company
Winner Group Limited was incorporated in the Cayman Islands on April 8, 2003 with registration number 124887 and an authorized sharecapital of 360,000,000.00 shares with a nominal value of HKD 1 per share. 1,143,000 shares have been issued. The registered address is Vistra(Cayman) Limited, P.O. Box 31119, Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman KY1-1205, Cayman Islands.
The ultimate controlling party of the Company is Li Jianquan.
Other description:
2. Subsidiaries of the Company
See Note “X. Interests in other entities”.
3. Cooperative Enterprises and Joint Ventures
See the note for important cooperative enterprises or joint ventures of the Company.
Other cooperative enterprises or joint ventures that made related party transactions with the Company in the current period, or formed thebalance of related party transactions with the Company in the previous periods are as follows:
| Name of cooperative enterprise or joint venture | Relationship with the Company |
Chengdu Winner
| Chengdu Winner | Cooperative enterprise |
Hubei Xianchuang Technology Co., Ltd.
| Hubei Xianchuang Technology Co., Ltd. | Cooperative enterprise |
S Company
| S Company | Cooperative enterprise |
Other description
4. Situation of Other Related Parties
| Name of other related parties | Relationship of other related parties with the Company |
Glory Ray Holdings Limited
| Glory Ray Holdings Limited | A company controlled by the actual controller |
Glory Ray Limited
| Glory Ray Limited | A company controlled by the actual controller through Glory Ray Holdings |
Beijing Sequoia Xinyuan Equity Investment Center (limitedpartnership)
| Beijing Sequoia Xinyuan Equity Investment Center (limited partnership) | Shareholder of the Company |
Xiamen Leyuan Investment Partnership (LimitedPartnership)
| Xiamen Leyuan Investment Partnership (Limited Partnership) | Shareholder of the Company |
Xiamen Yutong Investment Partnership (LimitedPartnership)
| Xiamen Yutong Investment Partnership (Limited Partnership) | Shareholder of the Company |
Xiamen Huikang Investment Partnership (LimitedPartnership)
| Xiamen Huikang Investment Partnership (Limited Partnership) | Shareholder of the Company |
Shenzhen Capital Group Co., Ltd.
| Shenzhen Capital Group Co., Ltd. | Shareholder of the Company |
Xiamen Zepeng Investment Partnership (LimitedPartnership)
| Xiamen Zepeng Investment Partnership (Limited Partnership) | Shareholder of the Company |
Chengdu Winner Likang Medical Products Co., Ltd.
| Chengdu Winner Likang Medical Products Co., Ltd. | Joint venture, with 49% equity hold by the Company |
Wuhan Zhuoling Packaging Co., Ltd.
| Wuhan Zhuoling Packaging Co., Ltd. | A company controlled by close family members of the Company’s key managers |
Glory Ray Holdings Limited
| Glory Ray Holdings Limited | A company controlled by the actual controller |
Li Jianquan
| Li Jianquan | Actual controller of the Company |
Fang Xiuyuan
| Fang Xiuyuan | Director, deputy general manager, chief financial officer |
Xu Xiaodan
| Xu Xiaodan | Director |
Guo Zhenwei
| Guo Zhenwei | Director |
Peng Jianfeng
| Peng Jianfeng | Independent director |
Xie Jiawei
| Xie Jiawei | Independent director |
Liu Ke
| Liu Ke | Independent director |
Zhang Tingting
| Zhang Tingting | Chairman of the Board of Supervisors |
Wang Ying
| Wang Ying | Former supervisor |
Zhang Yan
| Zhang Yan | Supervisor |
Liu Hua
| Liu Hua | Employee supervisor |
Chen Huixuan
| Chen Huixuan | Secretary to the board of directors, deputy general manager |
Zhang Li
| Zhang Li | Deputy general manager |
Huang Jun
| Huang Jun | Original shareholder and original director of Winner Medical (Hunan) |
Lixian SHRCB Rural Bank Co., Ltd.
| Lixian SHRCB Rural Bank Co., Ltd. | A company in which Zheng Datian, Vice Chairman of Winner Medical (Hunan), serves as a director |
Jingyi Biotechnology (Shanghai) Co., Ltd.
| Jingyi Biotechnology (Shanghai) Co., Ltd. | A company actually controlled by Wu Kangping, a shareholder of Longterm Medical |
Shenzhen Nine Stars Printing and Packaging Group Co.,Ltd.
| Shenzhen Nine Stars Printing and Packaging Group Co., Ltd. | A company controlled by the final controller of Winner Guilin before merge |
Shenzhen Junhesheng Technology Co., Ltd.
| Shenzhen Junhesheng Technology Co., Ltd. | A company controlled by the actual controller of Junjian Medical before merge |
| Name of other related parties | Relationship of other related parties with the Company |
Shenzhen Shengtianning Medical Device Co., Ltd.
| Shenzhen Shengtianning Medical Device Co., Ltd. | A company controlled by the actual controller of Junjian Medical before merge |
Shenzhen Zhengjun Medical Device Co., Ltd.
| Shenzhen Zhengjun Medical Device Co., Ltd. | A company controlled by the actual controller of Junjian Medical before merge |
Zhejiang Kanglidi Medical Supplies Co., Ltd.
| Zhejiang Kanglidi Medical Supplies Co., Ltd. | A company actually controlled by Wu Di, a shareholder of Longterm Medical |
ZheJiang Longmed Medical Technology Co., Ltd.
| ZheJiang Longmed Medical Technology Co., Ltd. | A company actually controlled by Wu Di, a shareholder of Longterm Medical |
ZheJiang Longrising Medical New Materials Co., Ltd.
| ZheJiang Longrising Medical New Materials Co., Ltd. | A company actually controlled by Wu Kangping, a shareholder of Longterm Medical |
Zheng Junhui
| Zheng Junhui | Controlling shareholder and actual controller of Junjian Medical before merger |
Wu Kangping, Huang Lepei, Wu Di
| Wu Kangping, Huang Lepei, Wu Di | Controlling shareholder of Longterm Medical before merger and its current minority shareholder |
Cao Wensong, Zhang Yuqing
| Cao Wensong, Zhang Yuqing | Controlling shareholder of Shanghai Hongsong before merger and its current minority shareholder |
Guilin Golden Eagle Latex Technology Co., Ltd.
| Guilin Golden Eagle Latex Technology Co., Ltd. | Minority shareholders of Guilin Latex, former shareholders of Jingzhou Latex |
Other description
5. Connected Transaction
(1) Connected transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
| Related party | Connected transaction content | Amount incurred in the current period | Approved transaction quota | Whether the transaction quota is exceeded | Amount incurred in previous period |
Wuhan ZhuolingPackaging Co., Ltd.
| Wuhan Zhuoling Packaging Co., Ltd. | Purchasing goods or services | 9,682,134.02 | No | 11,212,057.11 |
Chengdu WinnerLikang MedicalProducts Co., Ltd.
| Chengdu Winner Likang Medical Products Co., Ltd. | Purchasing goods or services | 27,437.96 | No | 142,663.88 |
Shenzhen Nine StarsPrinting andPackaging Group Co.,Ltd.
| Shenzhen Nine Stars Printing and Packaging Group Co., Ltd. | Purchasing goods or services | 436,641.99 | No | 1,078,762.59 |
Shenzhen ZhengjunMedical Device Co.,Ltd.
| Shenzhen Zhengjun Medical Device Co., Ltd. | Purchasing goods or services | 0.00 | No | 32,035.36 |
Zhejiang KanglidiMedical Supplies Co.,Ltd.
| Zhejiang Kanglidi Medical Supplies Co., Ltd. | Purchasing goods or services | 45,884.88 | No | 81,451.32 |
ZheJiang LongrisingMedical NewMaterials Co., Ltd.
| ZheJiang Longrising Medical New Materials Co., Ltd. | Purchasing goods or services | 81,773.40 | No | 196,530.97 |
ZheJiang LongmedMedical TechnologyCo., Ltd.
| ZheJiang Longmed Medical Technology Co., Ltd. | Purchasing goods or services | -2,082.001* | No | 2,189.50 |
Guilin Golden EagleLatex TechnologyCo., Ltd.
| Guilin Golden Eagle Latex Technology Co., Ltd. | Purchasing goods or services | 2,033,435.71 | No |
Note: 1* The purchase of Zhejiang Longterm Medical Technology Co., Ltd. was negative because there was a return in the current period.
Sell of commodities/provision of labor service
Unit: yuan
| Related party | Connected transaction content | Amount incurred in the current period | Amount incurred in previous period |
Chengdu Winner Likang Medical ProductsCo., Ltd.
| Chengdu Winner Likang Medical Products Co., Ltd. | Sell of goods or services | 458,092.25 | 2,900,182.22 |
ZheJiang Longmed Medical TechnologyCo., Ltd.
| ZheJiang Longmed Medical Technology Co., Ltd. | Sell of goods or services | 307,413.91 | 75,658.29 |
Zhejiang Kanglidi Medical Supplies Co.,Ltd.
| Zhejiang Kanglidi Medical Supplies Co., Ltd. | Sell of goods or services | 2,799,497.68 | 4,828,476.21 |
Shenzhen Shengtianning Medical DeviceCo., Ltd.
| Shenzhen Shengtianning Medical Device Co., Ltd. | Sell of goods or services | 30,889.38 | 1,419,274.31 |
Related transaction of purchases and sales of goods, provision and acceptance of services
(2) Associated fiduciary management/contracting and entrusted management/subcontracting
Entrusted management / contracting of the Company:
Unit: yuan
| Name of entrusting party / subcontractor | Name of entrusting party / contractor | Entrusted / contracting asset type | Fiduciary / contracting start date | Fiduciary / contracting termination date | Pricing basis of fiduciary income / contracting income | Fiduciary income / contracting income recognized in the current period |
Associated fiduciary / contracting
Entrusted management / subcontracting of the Company:
Unit: yuan
| Name of entrusting party / subcontractor | Name of entrusting party / contractor | Entrusting / subcontracting asset type | Entrusting / subcontracting start date | Entrusting / subcontracting termination date | Pricing basis of fiduciary fee / subcontracting fee | Fiduciary fee / subcontracting fee recognized in the current period |
Associated management / subcontracting
(3) Related-party lease
The Company as the lessor:
Unit: yuan
| Name of lessee | Type of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
ZheJiang Longmed Medical TechnologyCo., Ltd.
| ZheJiang Longmed Medical Technology Co., Ltd. | Plant | 60,550.46 |
Chengdu Winner Likang Medical ProductsCo., Ltd.
| Chengdu Winner Likang Medical Products Co., Ltd. | Plant | 1,090,129.38 |
The Company as the lessee:
Unit: yuan
| Name of lessor | Type of leased assets | Simplified processing of short-term leases and rental expenses of low-value asset leases (if applicable) | Variable lease payments that are not included in the measurement of the lease liabilities (if applicable) | Rent paid | Interest expenses incurred on lease liabilities | Right-of-use assets increased | |||||
| Amount incurred in the current period | Amount incurred in previous period | Amount incurred in the current period | Amount incurred in previous period | Amount incurred in the current period | Amount incurred in previous period | Amount incurred in the current period | Amount incurred in previous period | Amount incurred in the current period | Amount incurred in previous period | ||
Related-party lease description
(4) Related-party guarantee
The Company as the guarantor
Unit: yuan
| Secured party | Amount guaranteed | Guarantee start date | Guarantee maturity date | Whether the guarantee has been fulfilled |
The Company as the secured party
Unit: yuan
| Guarantor | Amount guaranteed | Guarantee start date | Guarantee maturity date | Whether the guarantee has been fulfilled |
Related-party guarantee
(5) Related party loan at call
Unit: yuan
| Related party | Borrowing amount | Start date | Maturity date | Description |
Borrowing
| Borrowing |
Lending
| Lending |
(6) Asset transfer and debt restructuring of related party
Unit: yuan
| Related party | Connected transaction content | Amount incurred in the current period | Amount incurred in previous period |
(7) Key management personnel remuneration
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Key management personnelremuneration
| Key management personnel remuneration | 4,930,973.93 | 5,193,963.22 |
(8) Other connected transactions
6. Accounts Receivable and Payable By Related Parties
(1) Receivables
Unit: yuan
| Project name | Related party | Closing Balance | Balance at the beginning of the period | ||
| Book balance | Provision for bad debt | Book balance | Provision for bad debt | ||
AccountsReceivable
| Accounts Receivable | Chengdu Winner Likang Medical Products Co., Ltd. | 179,970.10 | 8,998.50 | 121,107.25 | 6,055.36 |
AccountsReceivable
| Accounts Receivable | Jingyi Biotechnology (Shanghai) Co., Ltd. | 0.00 | 0.00 | 651,786.67 | 362,599.47 |
AccountsReceivable
| Accounts Receivable | Zhejiang Kanglidi Medical Supplies Co., Ltd. | 3,472,382.92 | 173,619.15 | 6,273,681.66 | 3,262,314.46 |
AccountsReceivable
| Accounts Receivable | ZheJiang Longmed Medical Technology Co., Ltd. | 210,705.70 | 10,535.29 | 44,264.20 | 22,132.10 |
OtherReceivables
| Other Receivables | Cao Wensong | 2,431,586.61 | 121,579.33 |
OtherReceivables
| Other Receivables | Chengdu Winner Likang Medical Products Co., Ltd. | 581,249.80 | 29,062.49 |
Advance tosupplier
| Advance to supplier | ZheJiang Longmed Medical Technology Co., Ltd. | 0.00 | 62,934.14 |
Advance tosupplier
| Advance to supplier | Winner Group Limited | 516,504.00 | 516,504.00 |
Long-termreceivables (1*)
| Long-term receivables (1*) | Chengdu Winner Likang Medical Products Co., Ltd. | 41,158,701.76 | 40,068,572.38 |
Note: 1*This item comprises non-current assets reclassified to maturity within one year.
(2) Payables
Unit: yuan
| Project name | Related party | Ending book balance | Beginning book balance |
AccountsPayable
| Accounts Payable | Wuhan Zhuoling Packaging Co., Ltd. | 8,461,659.91 | 763,921.27 |
AccountsPayable
| Accounts Payable | Chengdu Winner Likang Medical Products Co., Ltd. | 14,176.10 | 11,682.12 |
AccountsPayable
| Accounts Payable | Shenzhen Nine Stars Printing and Packaging Group Co., Ltd. | 374,404.14 |
AccountsPayable
| Accounts Payable | Shenzhen Shengtianning Medical Device Co., Ltd. | 46,946.90 | 54,808.53 |
AccountsPayable
| Accounts Payable | Zhejiang Kanglidi Medical Supplies Co., Ltd. | 83,441.97 |
| Project name | Related party | Ending book balance | Beginning book balance |
AccountsPayable
| Accounts Payable | ZheJiang Longmed Medical Technology Co., Ltd. | 53,157.52 |
AccountsPayable
| Accounts Payable | Guilin Golden Eagle Latex Technology Co., Ltd. | 4,424,831.67 | 7,048,938.08 |
Other Payables
| Other Payables | Huang Jun | 3,157,385.18 |
Other Payables
| Other Payables | Cao Wensong | 568,310.09 |
Other Payables
| Other Payables | Guilin Golden Eagle Latex Technology Co., Ltd. | 1,670,250.00 |
ContractLiabilities
| Contract Liabilities | Shenzhen Shengtianning Medical Device Co., Ltd. | 1,165.93 | 1,165.93 |
7. Related Party Commitment
8. Others
XV. Share-Based Payment
1. Overall Status of Share-Based Payment
□ Applicable √ Not applicable
2. Equity-Settled Share-Based Payments
√Applicable □ Not applicable
Unit: yuan
| Method for determining the fair value of equity instruments on the grant date | 1. 2020 Restricted Stock Incentive Plan： The fair value of the restricted stock is calculated using the Black-Scholes model option pricing formula; the fair value of other employee restricted stocks is determined by reference to the stock closing price on the grant date without taking into account the liquidity discount. 2. 2023 Employee Stock Ownership Plan: The fair value of the Company’s shares on the date of grant (calculated based on the closing price of the Company’s shares on that day). |
Significant parameters of determining the fair value ofequity instruments on the grant date
| Significant parameters of determining the fair value of equity instruments on the grant date | Stock price, risk-free rate of return, historical volatility |
Basis for the determination of the number of viable equityinstruments
| Basis for the determination of the number of viable equity instruments | On each balance sheet date of the waiting period, the Company makes its best estimate based on the latest changes in the number of exercisable persons and the corresponding number of option shares and other subsequent information and revises the number of stock options expected to be exercisable. |
Reasons for significant differences between the current andprevious estimates
| Reasons for significant differences between the current and previous estimates | None |
Accumulated amount of equity-settled share-basedpayments recorded in capital reserves
| Accumulated amount of equity-settled share-based payments recorded in capital reserves | 94,545,105.83 |
Total amount of expenses recognized by equity-settledshare-based payments in the current period
| Total amount of expenses recognized by equity-settled share-based payments in the current period | 2,908,958.42 |
Other description
1. 2020 Restricted Stock Incentive Plan
(1) Number of restricted stock granted
On November 27, 2020, the Company held the 15th meeting of the second Board of Directors and the 9th meeting of the second Board ofSupervisors, deliberated and passed the Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and Its Abstract. On December 15, 2020,the Company held the sixth extraordinary general meeting of shareholders in 2020 to deliberate and pass the Proposal on the 2020 RestrictedStock Incentive Plan (Draft) and Its Abstract. According to the above proposal, the number of restricted stock (Class II restricted stock) to begranted in this incentive plan is 6.5 million, and the underlying stock involved is A -share common stock, accounting for about 1.52% of thetotal capital stock of the Company at the time of announcement of the draft incentive plan. Among them, 5.9 million shares were granted forthe first time, accounting for about 1.38% of the total capital stock o f the Company at the time of announcement of the draft incentive plan,and 90.77% of the total equity to be granted. 0.6 million shares were reserved to be granted, accounting for about 0.14% of the total capitalstock of the Company at the time of announcement of the draft incentive plan, and 9.23% of the total equity to be granted. No more than 1,053incentive objects will be granted at the first time, including directors, senior management, and other persons deemed to need incentives by theBoard of Directors.
On December 18, 2020, the Company’s 17th meeting of the second Board of Directors and the 11th meeting of the second Board of Supervisorsdeliberated and adopted the Proposal on the First Grant of Restricted Stocks to the Incentive Objects. In view of the fact that 17 incentiveobjects gave up the restricted stock to be granted by the Company due to resignation or personal reasons, they no longer qualified for theincentive conditions. According to the 2020 Restricted Stock Incentive Plan (Draft), the Company adjusted the incentive objects and the numberof grants. The number of incentive objects granted for the first time was adjusted from 1,053 to 1,036, and the total number of restricted stockgranted for the first time was adjusted from 5.90 million to 5.833 million. The grant price for the initial allocation of restricted stock was 72.50yuan per share.
(2) Validity, grant date, vesting arrangement and lock-up period of this incentive plan
① The incentive plan shall be valid for no more than 48 months from the date of the first grant of restricted stock to the date when all therestricted stock granted to the incentive object is vested or invalidated.
② After the incentive plan is approved by the general meeting of shareholders of the Company, the Board of Directors shall determine thegrant date, and the grant date must be the trading day. The Company shall grant the restricted stock and complete the announcement within 60days after the approval of the general meeting of shareholders. If the Company fails to complete the above work within 60 days, theimplementation of this incentive plan will be terminated, and the restricted stock not granted will become invalid.
The Company shall, within 12 months after the deliberation and approval of the incentive plan by the general meeting of share holders, specifythe incentive objects reserved for award. If the incentive objects are not specified for more than 12 months, the restricted stock correspondingto the reserved part shall become invalid.
③ The vesting arrangement for the first grant of restricted stock in this incentive plan is shown in the following table:
| Vesting arrangement | Vesting period | Vesting ratio |
First vestingperiod
| First vesting period | From the first trading day of 17 months from the date of the first grant to the last trading day within 29 months from the date of the first grant | 50% |
Second vestingperiod
| Second vesting period | From the first trading day of 29 months from the date of the first grant to the last trading day within 41 months from the date of the first grant | 50% |
If the restricted stock corresponding to the reserved part is granted within 2020, the vesting arrangement for granting restricted stocks reservedin this incentive plan is consistent with the vesting arrangement for the first grant of restricted stock.
If the restricted stock corresponding to the reserved part is granted within 2021, the vesting arrangement for granting restricted stocks reservedin this incentive plan is shown in the following table:
| Vesting arrangement | Vesting period | Vesting ratio |
First vestingperiod
| First vesting period | From the first trading day of 12 months from the date of reserved granting to the last trading day within 24 months from the date of reserved granting | 50% |
Second vestingperiod
| Second vesting period | From the first trading day of 24 months from the date of reserved granting to the last trading day within 36 months from the date of reserved granting | 50% |
If the incentive objects are directors and senior management of the Company, the shares transferred each year during their term of office shallnot exceed 25% of the total number of the Company’s shares they hold; they shall not transfer the shares they hold within half a year afterleaving the Company
The range of exercise prices of the Company’s stock options issued and outstanding at the end of the period and the remaining term of thecontract: In case of the audited revenue in 2021 ≥ 12 billion yuan, the ownership proportion at the Company level is 100%; in case of 10 billionyuan ≤ the audited revenue in 2021 < 12 billion yuan, the ownership proportion at the Company level is 80%; in case of the audited businessincome in 2021 < 10 billion yuan, the restricted stock planned to be vested by the incentive object shall not be vested and become invalid. Incase of the audited revenue in 2022 ≥ the audited revenue in 2021 * (1+30%), the ownership proportion at the Company level is 100%; in caseof the audited revenue in 2021 * (1+20%) ≤ the audited revenue in 2022 < the audited revenue in 2021 * (1+30%), the ownership proportionat the Company level is 80%; in case of the audited business income in 2022 < the audited revenue in 2021 * (1+20%), the restricted stockplanned to be vested by the incentive object shall not be vested and become invalid.
On April 20, 2022, the Company convened the Sixth Meeting of the Third Board of Directors and the Fifth Meeting of the Third Board ofSupervisors to review and approve the Proposal on the Revocation of Part of Granted Restricted Shares Not Yet Vested. Due to the Company’sfailure to complete the performance appraisal requirements in the first vesting period (2021), 166 incentive targets resigned from the date ofinitial grant of restricted stocks to April 20, 2022, and the original incentive targets Ms. Zhang Tingting and Ms. Liu Hua were elected as theCompany’s supervisors on July 13, 2021. The Company canceled a total of 3.366925 million restricted shares. At this time, there are 868remaining incentive targets and 2,466,075 remaining restricted shares.
On May 20, 2021, the Company implemented the 2020 annual equity distribution, and the grant price of restricted stocks was adjusted from
72.50 yuan/share to 70.70 yuan/share.
On May 27, 2022, the Company implemented the 2021 annual equity distribution, and the grant price of restricted stocks was adjusted againfrom 70.70 yuan/share to 69.81 yuan/share.
On April 23, 2023, the Company convened the Eleventh Meeting of the Third Board of Directors and the Eighth Meeting of the Third Boardof Supervisors to deliberate and approve the Proposal on the Revocation of Part of Granted Restricted Shares Not Yet Vested and the Proposalon Achieving Vesting Conditions for the Second Vesting Period of the 2020 Restricted Stock Incentive Plan. The first grant of restricted sharesin this incentive plan will enter the second vesting period on May 18, 2023. The vesting conditions for the second vesting period have beenmet, and the Company will use December 18, 2020, as the grant date. 1,162,140 restricted shares were granted to 388 incentive targets at agrant price of 69.81 yuan per share.
In 2020, the cumulative amount of share-based payment settled by equity in the restricted stock incentive plan included in the capital reservewas RMB 89,454,428.59.
2. 2023 Equity incentive or ESOP
The Company held the 16
th meeting of the third board of directors and the 11
th
meeting of the third board of supervisors on August 15, 2023,and held the 2
ndExtraordinary General Meeting of Shareholders of 2023 on September 5, 2023, which reviewed and approved the Proposalon the Company’s First Employee Stock Ownership Plan (Draft) and Proposal on the Management Measures for the Company’s FirstEmployee Stock Ownership Plan along with other related proposals.
The purchase price of this employee stock ownership plan was determined to be 43.00 yuan per share. The actual total subscription fundsamounted to 21,715,000 yuan (excluding reserved shares), and the actual subscribed shares were 21,715,000 shares. The ratio of employeeself-raised funds to incentive funds set aside by the Company is 1:1. The source of the shares is the Company’s A-share common shares thathave been repurchased in the Company’s special repurchase account.
The Company completed the non-trading transfer of the 2023 Employee Stock Ownership Plan on October 11, 2023.
The duration of this employee stock ownership plan is 60 months, calculated from the date when the shareholders’ meeting approves the planand the Company announces the transfer of the underlying stocks to the name of the employee stock ownership plan. This Employee StockOwnership Plan will vest the corresponding underlying rights and interests to each holder of the Employee Stock Ownership Plan in threephases based on the assessment results during the vesting assessment period. The vesting time points are the transfer of the shareholding planto the name of the Employee Stock Ownership Plan. After 12 months, 24 months, and 36 months from the date of completion, the vestingproportions will be 30%, 30%, and 40% of the total number of underlying stocks held by this share ownership plan, respectively.
2023 Employee Stock Ownership Plan: The cumulative amount of equity-settled share-based payment included in capital reserves is RMB5,090,677.24, and the total expenses recognized for equity-settled share-based payment in this period are RMB 2,908,958.42.
3. Cash-Settled Share-Based Payments
□ Applicable √ Not applicable
4. Share-Based Compensation Expense for the Period
√Applicable □ Not applicable
Unit: yuan
| Grant object category | Equity share-based payment expense | Cash share-based payment expense |
Management personnel
| Management personnel | 2,908,958.42 |
Total
| Total | 2,908,958.42 |
Other description
5. Modification and Termination of Share-Based Payment
None
6. Others
None
XVI. Commitment and Contingencies
1. Important Commitment Issues
Important commitments on balance sheet date
1. Important commitments on balance sheet date
(1) Large-scale outsourcing contracts that have been signed or are about to be performed and their financial implications
As of June 30, 2024, the outstanding large contracts between the Company or its subsidiaries signed and in the process of being performed orto be performed are as follows:
| Project name | Amount (Yuan) |
Project I
| Project I | 38,495,651.38 |
Project II
| Project II | 37,808,591.00 |
Project III
| Project III | 17,152,000.00 |
Project IV
| Project IV | 16,250,000.00 |
Project V
| Project V | 9,000,000.00 |
Project V
| Project V | 8,316,000.00 |
Project VI
| Project VI | 5,209,000.00 |
Project VII
| Project VII | 5,200,000.00 |
Total
| Total | 137,431,242.38 |
2. Contingencies
(1) Important contingencies on balance sheet date
The Company has no significant contingencies to be disclosed as of June 30, 2024.
(2) Explanation is also required if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
3. Others
None
XVII. Post-Balance Sheet Events
1. Important Non-Adjustment Items
Unit: yuan
| Item | Description | Influence number of financial position and operating results | Reasons for influence number cannot be estimated |
2. Profit Distribution
3. Sales Return
4. Other Post-Balance Sheet Events
XVIII. Other Important Matters
1. Correction of Previous Accounting Errors
(1) Retrospective restatement
Unit: yuan
| Content of accounting error correction | Processing procedures | Report item name of each affected comparison period | Cumulative influence number |
(2) Prospective application
| Content of accounting error correction | Approval procedures | Reason for adopting prospective application |
2. Debt Restructuring
3. Assets Replacement
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Pension Plan
5. Discontinued Operation
Unit: yuan
| Item | Income | Cost | Total profit | Income Tax Expenses | Net profit | Profit from discontinued operations attributable to the owners of parent company |
Other description
6. Segment Information
(1) Determination basis and accounting policy of reporting segment
According to the Company’s internal organizational structure, management requirements and internal reporting system, two reporting segmentshave been determined, respectively: medical consumables, healthy consumer goods. Reporting segments of the Company offers differentproducts or services or operates in different regions. Since each segment requires different technologies or marketing strategies, themanagement of the Company manages the operating activities of each reporting segment separately and regularly evaluates the operatingresults of these reporting segments to determine the allocation of resources to them and evaluate their performance.
The inter-segment transfer price is determined on the basis of the actual transaction price, and the expenses indirectly attributable to thesegments are distributed among the segments in proportion to the income (as determined by the Company). Assets are allocated according tothe operations of a segment and the location of the assets. Liabilities of a segment include liabilities attributable to that segment arising fromthe operations of a segment. If expenses related to liabilities shared by multiple operating segments are allocated to those operating segments,such shared liabilities are also allocated to those operating segments.
(2) Financial information of the reporting segment
Unit: yuan
| Item | Medical consumables | Healthy consumer goods | Unallocated | Offset between segments | Total |
Revenue
| Revenue | 1,751,278,597.35 | 2,282,226,506.99 | 4,033,505,104.34 |
Cost of sale
| Cost of sale | 1,084,618,155.94 | 983,852,286.64 | 2,068,470,442.58 |
Assets impairmentloss & creditimpairment loss
| Assets impairment loss & credit impairment loss | 44,407,672.16 | 19,863,648.44 | 64,271,320.60 |
Depreciationexpense andamortizationexpense
| Depreciation expense and amortization expense | 80,849,186.62 | 132,754,929.92 | 213,604,116.54 |
Operating profit /loss
| Operating profit / loss | 133,718,230.15 | 291,561,034.88 | 48,176,816.30 | 473,456,081.33 |
Non-revenue andexpense
| Non-revenue and expense | -74,803.50 | -74,803.50 |
Assets and liabilities
| Assets and liabilities |
Total assets
| Total assets | 4,963,283,069.01 | 3,470,091,845.15 | 8,135,460,598.41 | 16,568,835,512.57 |
Total liabilities
| Total liabilities | 1,164,119,747.27 | 1,465,087,917.16 | 1,908,585,106.35 | 4,537,792,770.78 |
(3) If the Company has no reporting segments, or cannot disclose the total assets and total liabilities of each reporting segment, the reasons
shall be explained.
(4) Other description
7. Other Important Transactions and Matters Affecting the Decision-Making Of Investors
Urban Renewal Project of Winner Industrial Park
(1) Project Overview
On April 6, 2017, the Company and Shenzhen Galaxy Real Estate Development Co., Ltd. (hereinafter referred to as “Galaxy Real Estate”)signed the Cooperation Agreement on Urban Renewal Project of Winner Industrial Park to apply for and implement the demolition andreconstruction of urban renewal and reconstruction of Winner Industrial Park in Longhua District, Shenzhen City (hereinafter referred to asthe “Project”). The scope of land to be demolished for the Project is a state-owned land that has been transferred. The land parcel number isA819-0123. The land area is 29,064.49 m
, and the current use is industrial land. According to the statutory plan of [Pinus tabulaeformis area]of No.402-19&20&21, Bao’an District, Shenzhen City, the planned use of this land parcel is a second-class residential land. The land has beenregistered for title with a construction area of 36,625.89 m
, used for office, plant and dormitory. The Company shall be the sole subject ofrights to the said parcel and all the buildings (structures) and appendages thereon. The first to sixth floors of the second office building, thefirst to sixth floors of the third dormitory building, and the first to sixth floors of the fourth dormitory building have been mortgaged at present.
(2) Cooperation mode
The Company agrees to entrust the target land and building to Galaxy Real Estate for application for approval of the urban renewal unit plan,and accepts the relocation compensation of Galaxy Real Estate according to the conditions agreed in this agreement. Galaxy Real Estate isresponsible for all the work related to the declaration of renewal unit plan of the target land and building and implementation of urban renewal,responsible for the relocation compensation and demolition and reconstruction funds, and enjoys the interest in the renewal project as the singlemarket implementer.
After the renewal and reconstruction of the target land and buildings is approved by the urban renewal unit plan, the specific transformationand development intensity, planned purpose and indicators, etc. shall be discussed by Galaxy Real Estate with the Company in advance beforethe formal application for construction, but the final approval shall be subject to the relevant government departments.
Galaxy Real Estate shall pay the cooperation consideration to the Company by paying the relocation compensation consideration to theCompany. The Company voluntarily chooses the relocation compensation method that combines monetary compensation and property rightexchange (relocation), including: 1) monetary compensation: RMB 400 million; 2) Property right exchange (relocation): the area of propertyright exchange (relocation) obtained by Party B shall be determined at 40% of the gross floor area for sale based on the gross floor area forsale determined in the final approval of the special planning of the renewal unit of this Project.
(3) Current progress
The Company held the 14
th
meeting of the third session of the Board of Directors on June 12, 2023, and the first extraordinary general meetingof shareholders in 2023 on July 7, 2023, respectively, to review and approve the Proposal on Executing Relevant Agreements on RelocationCompensation and Resettlement for the Urban Renewal Project of Winner Industrial Park. The Company cooperated with Shenzhen XingdaReal Estate Development Co., Ltd. (hereinafter referred to as “Xingda Company”) and signed the Agreement on Relocation Compensation andResettlement for Urban Renewal Units of the Winner Industrial Park in Longhua District in Shenzhen and the Relinquishment of Real EstateRights Statement and other relevant documents with Xingda Company on the land and above-ground buildings of the Industrial Park in LonghuaDistrict of Shenzhen City.
After the Company and Xingda Company signed the Agreement on Relocation Compensation and Resettlement for Urban Renewal Units ofthe Winner Industrial Park in Longhua District in Shenzhen and the Relinquishment of Real Estate Rights Statement and other relevantdocuments, both parties actively promoted the execution of the transaction. The project obtained the Reply Letter from the Shenzhen LonghuaDistrict Urban Renewal and Land Preparation Bureau on the Approval Status of the “Urban Renewal Unit Planning of Wenwen IndustrialPark, Longhua Street, Longhua District” (Shenhua Update Letter [2023] No. 25). According to the reply letter, the approval status indicatesthat the current Class I industrial land function of Winner Industrial Park has been adjusted to planned Class II residential land + commercialland function. The Company vacated the industrial park and handed it over to Xingda Company on July 17, 2023. The two parties signed theTransfer Confirmation Letter and settled the water and electricity. Then Xingda Company began to demolish the old buildings. The Companyconducted accounting treatment in accordance with the principle of asset disposal in July 2023. When the industrial park was handed over toXingda Company for demolition, a one-time net income of 1.36 billion yuan was recognized from asset disposal, and the fair value of therelocated house evaluated by a professional appraisal agency was used as the basis for revenue measurement. This type of treatment is also theaccounting treatment adopted in most of the similar cases of listed companies enquired so far.
Considering the significant changes occurring in the current real estate market, following an amicable negotiation between the two parties, theCompany and Xingda Company executed the Confirmation Letter on the Revocation of the “Relinquishment of Real Estate Rights Statement”on January 29, 2024. The primary contents of the aforementioned document are as follows: Temporarily halting project advancement,the Company retrieved all Relinquishment of Real Estate Rights Statement (six original documents) according to the agreement, and rescindedall the statements contained within the Relinquishment of Real Estate Rights Statement.
The Company will continue to closely monitor changes in the real estate market with Xingda Company, strengthen communication, and resumeproject construction if the real estate market improves in the future. Based on the actual progress of the project, the Company promises to fullycooperate with Xingda Company in handling relevant procedures. Considering the project postponement that occurred in December 2023, andthe unanimous agreement among the project stakeholders to delay construction, the Company has rescinded the Relinquishment of Real EstateRights Statement and withdrawn all statements contained therein. Xingda Company has also issued a written Statement confirming these actions.This event qualifies as a future adjustment to the balance sheet. Based on this analysis, the Company has reversed the corresponding net profitin asset disposal income
On July 26, 2024, the Company held the 23rd Meeting of the 3rd Board of Directors, and reviewed and approved the Proposal on Signing theSupplementary Agreement on Relocation Compensation and Resettlement of Urban Renewal Units in Winner Industrial Park. According tothe supplementary agreement to be signed, the office property area and commercial property area obtained by the Company remain unchanged(39,240 square meters for office property and 200 square meters for commercial property), while the residential property area and compensationamount obtained by the Company are linked to the actual average transaction price of residential commercial housing obtained by XingdaCompany. On August 19, 2024, the Company and the partner have signed the aforementioned supplementary agreement. The project will berestarted.
As of June 30, 2024, the Company received a total of RMB 250 million in cash. This includes a deposit of RMB 50 million received in April2017, a prepaid relocation compensation of RMB 100 million received in February 2020, and another prepaid relocation compensation of RMB100 million received in July 2023, as agreed upon in the relocation compensation and resettlement agreement.
Heyuan investment and construction project
(1) Problem background
In 2016, under the guidance and promotion of Shenzhen Longhua District Committee and District Government, the Company plans to transferpart of the production and logistics functions to Heyuan Zijin Linjiang Industrial Park in response to the policy of supporting Heyuan City asa counterpart of Shenzhen City. In May 2016, the Company and the People’s Government of Zijin County of Heyuan City signed the Agreementon Investment and Construction of Medical Package and Cotton Household Goods Production Project (hereinafter referred to as the“Investment Agreement”), with the construction land of the project covering 200,000 m
After the agreement was signed and the Land Use Notice was obtained, the Company submitted the planning plan, project application andapproval form as required, and started the construction. In August 2016, Winner Medical (Heyuan) obtained the Record Certificate ofEnterprise Investment Projects in Guangdong Province issued by the Development and Reform Bureau of Zijin County. In June 2017,Environmental Protection Bureau of Zijin County issued the Approval on the Environmental Impact Report Form of the Construction Projectof Winner Medical (Heyuan) Co., Ltd. In accordance with the agreement, the Zijin County Government assisted in obtaining a series of licensessuch as state-owned land use right certificate and construction land planning permit.
After the project was signed and started construction, the government required all construction projects under construction in Zijin LinjiangIndustrial Park to stop due to land conflicts between the project site and the planned Heyuan East Station of Jiangxi-Shenzhen High-speedRailway and the High-speed Railway New Town. Meanwhile, the relevant land use procedures were suspended.
(2) Current progress
In June 2019, the Regulatory Detailed Planning and Constructional Detailed Urban Design of the Core Area of Heyuan High-speed RailwayNew Town was published to the public from June 22, 2019 to July 22, 2019. According to the final publicity content, it is determined that thesquare in front of Heyuan East Station of High-speed Railway, National Highway 205 and the High-speed Railway New Town overlap withthe project land of Winner Medical (Heyuan).
In October 2019, the Company signed a tripartite agreement with the People’s Government of Zijin County and the Management Committeeof Heyuan Jiangdong New District to clarify the overall disposal plan. The land used for Winner Medical (Heyuan)’s project and its above-ground buildings will be recovered by the People’s Government of Zijin County, and the three parties agree to determine the amount ofcompensation through arbitration. The People’s Government of Zijin County paid RMB 30 million to the Company as the performance bond.
In November 2019, International Arbitration Court of Ganjiang New District issued the Award ((2019) G.G.Z.Zi No.095), which confirmedthe termination of the original Investment Agreement, and the People’s Government of Zijin County shall bear the attorney fees, legal costsand other expenses totaling RMB 2,655,320.00. The land transfer deposit of RMB 3 million shall be returned to the Company and compensatefor the economic loss of RMB 550 million. The People’s Government of Zijin County shall pay 50% of the amount before December 31, 2019and 50% before February 29, 2020. As of June 30, 2024, the Company has received the land transfer deposit of RMB 3 million returned by thePeople’s Government of Zijin County and paid the compensation of RMB 332.5 million. The Company has also handed over the project land,above-ground buildings, equipment and facilities and relevant supporting materials to the People’s Government of Zijin County.
(3) Impact of this matter on the Company’s operation
Winner Medical (Heyuan)’s business positioning is mainly the production, logistics and warehousing functions of medical package and cottondaily necessities. At present, the Company has transferred the production, logistics and warehousing functions of Purcotton daily necessitiesto the Company’s subsidiary Winner Medical (Wuhan), and the production of medical package has been transferred to the Company’ssubsidiary Winner Medical (Chongyang).
Winner Medical (Wuhan) and Winner Medical (Chongyang) have sufficient capacity to undertake the aforementioned production, logisticsand warehousing business originally intended to be undertaken by Winner Medical (Heyuan). The above matters of Winner Medical (Heyuan)have not caused significant adverse impact on the normal production and operation of the Company.
8. Others
XIX. Notes on Main Items of Parent Company’s Financial Statement
1. Accounts Receivable
(1) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 392,011,286.32 | 340,774,634.65 |
1~2 years
| 1~2 years | 9,308,484.38 | 1,043,737.97 |
2~3 years
| 2~3 years | 445,014.14 | 179,652.24 |
More than 3 years
| More than 3 years | 2,368,338.71 | 2,318,934.33 |
3~4 years
| 3~4 years | 107,304.75 | 57,900.37 |
4~5 years
| 4~5 years | 0.00 | 118,509.20 |
More than 5 years
| More than 5 years | 2,261,033.96 | 2,142,524.76 |
Total
| Total | 404,133,123.55 | 344,316,959.19 |
(2) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Accountsreceivable ofprovision forbad debt bycombination
| Accounts receivable of provision for bad debt by combination | 404,133,123.55 | 100.00% | 18,588,843.64 | 4.60% | 385,544,279.91 | 344,316,959.19 | 100.00% | 15,260,708.63 | 4.43% | 329,056,250.56 |
Including:
| Including: |
Aging analysismethod
| Aging analysis method | 359,277,574.83 | 88.90% | 18,588,843.64 | 5.17% | 340,688,731.19 | 302,550,055.56 | 87.87% | 15,260,708.63 | 5.04% | 287,289,346.93 |
Othercombination
| Other combination | 44,855,548.72 | 11.10% | 44,855,548.72 | 41,766,903.63 | 12.13% | 41,766,903.63 |
Total
| Total | 404,133,123.55 | 100.00% | 18,588,843.64 | 4.60% | 385,544,279.91 | 344,316,959.19 | 100.00% | 15,260,708.63 | 4.43% | 329,056,250.56 |
Category name of provision for bad debts by combination: aging combination
Unit: yuan
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Within 1 year
| Within 1 year | 349,416,771.56 | 17,470,838.58 | 5.00% |
1~2 years
| 1~2 years | 9,308,484.38 | 930,848.44 | 10.00% |
2~3 years
| 2~3 years | 445,014.14 | 133,504.24 | 30.00% |
3~4 years
| 3~4 years | 107,304.75 | 53,652.38 | 50.00% |
Total
| Total | 359,277,574.83 | 18,588,843.64 |
Description of the basis for determining the combination:
Category name of provision for bad debts by combination: other combination
Unit: yuan
| Name | Closing Balance | ||
| Book balance | Provision for bad debt | Accruing proportion | |
Intra-group receivables
| Intra-group receivables | 44,855,548.72 | 0.00 | 0.00% |
Total
| Total | 44,855,548.72 | 0.00 |
Description of the basis for determining the combination:
If the provision for bad debts on accounts receivable relies on a general model of expected credit losses:
□ Applicable √ Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in the current period:
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write-off | Others | |||
Provision for bad debtof accounts receivable
| Provision for bad debt of accounts receivable | 15,260,708.63 | 4,671,199.81 | 1,343,064.80 | 18,588,843.64 |
Total
| Total | 15,260,708.63 | 4,671,199.81 | 1,343,064.80 | 18,588,843.64 |
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
(4) Accounts receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Write-off of important accounts receivable:
Unit: yuan
| Unit name | Nature of accounts receivable | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off accounts receivable:
(5) Accounts receivable with Top 5 ending balances by debtor
Unit: yuan
| Unit name | Ending balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Percentage of total closing balance of accounts receivable and contract assets | Ending balance of bad debt provision for accounts receivable and impairment provision for contract assets |
First
| First | 32,646,618.71 | 32,646,618.71 | 8.08% | 1,632,330.94 |
Second
| Second | 31,202,311.27 | 31,202,311.27 | 7.72% | 1,560,115.56 |
Third
| Third | 28,293,034.11 | 28,293,034.11 | 7.00% | 1,414,651.71 |
Fourth
| Fourth | 22,726,345.29 | 22,726,345.29 | 5.62% |
Fifth
| Fifth | 16,637,090.43 | 16,637,090.43 | 4.12% | 831,854.52 |
Total
| Total | 131,505,399.81 | 131,505,399.81 | 32.54% | 5,438,952.73 |
2. Other Receivables
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
Other Receivables
| Other Receivables | 116,045,259.43 | 116,040,893.47 |
Total
| Total | 116,045,259.43 | 116,040,893.47 |
(1) Interest receivable
1) Classification of interest receivable
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period |
2) Important overdue interest
Unit: yuan
| Borrower | Closing Balance | Overdue time | Overdue reason | Whether there is impairment and its judgment basis |
Other description:
3) Classified disclosure according to bad debt accrual method
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
5) Interest receivable actually written off during the period.
Unit: yuan
| Item | Amount written off |
Write-off of important interest receivable:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off:
Other description:
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
| Project (or invested unit) | Closing Balance | Balance at the beginning of the period |
2) Important dividends receivable with the aging more than 1 year
Unit: yuan
| Project (or invested unit) | Closing Balance | Aging | Reason for non-recovery | Whether there is impairment and its judgment basis |
3) Classified disclosure according to bad debt accrual method
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Other changes | |||
Where the amount of bad debt provision recovered or reversed is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
Other description:
5) Actual write-off of dividends receivable for the period
Unit: yuan
| Item | Amount written off |
Important write-off of dividends receivable:
Unit: yuan
| Unit name | Nature of payment | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off:
Other description:
(3) Other Receivables
1) Other receivables classified by nature
Unit: yuan
| Nature of payment | Ending book balance | Beginning book balance |
Compensation for investment and construction projectof Winner Medical (Heyuan)
| Compensation for investment and construction project of Winner Medical (Heyuan) | 220,155,320.00 | 220,155,320.00 |
Margin and deposit
| Margin and deposit | 3,259,092.48 | 3,740,072.80 |
Employee pretty cash
| Employee pretty cash | 442,102.20 | 558,778.18 |
Others
| Others | 2,582,620.66 | 1,978,710.15 |
Total
| Total | 226,439,135.34 | 226,432,881.13 |
2) Disclosure by aging
Unit: yuan
| Aging | Ending book balance | Beginning book balance |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 3,512,597.64 | 3,533,854.33 |
1~2 years
| 1~2 years | 40,502.90 | 28,992.00 |
2~3 years
| 2~3 years | 419,599.00 | 2,714,714.80 |
More than 3 years
| More than 3 years | 222,466,435.80 | 220,155,320.00 |
3~4 years
| 3~4 years | 2,311,115.80 |
4~5 years
| 4~5 years | 220,155,320.00 | 220,155,320.00 |
Total
| Total | 226,439,135.34 | 226,432,881.13 |
3) Classified disclosure according to bad debt accrual method
Unit: yuan
| Class | Closing Balance | Balance at the beginning of the period | ||||||||
| Book balance | Provision for bad debt | Book value | Book balance | Provision for bad debt | Book value | |||||
| Amount | Proportion | Amount | Accruing proportion | Amount | Proportion | Amount | Accruing proportion | |||
Including:
| Including: |
Including:
| Including: |
Provision for bad debts based on the general expected credit loss (ECL) model:
Unit: yuan
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit losses over the entire duration (no credit impairment occurred) | Expected credit losses over the entire duration (credit impairment has occurred) |
Balance on January 1, 2024
| Balance on January 1, 2024 | 110,391,987.66 | 110,391,987.66 |
Balance on January 1, 2024 in thecurrent period
| Balance on January 1, 2024 in the current period |
Accrual in the current period
| Accrual in the current period | 342,741.83 | 342,741.83 |
Reversal in the current period
| Reversal in the current period | 340,853.58 | 340,853.58 |
Balance on June 30, 2024
| Balance on June 30, 2024 | 110,393,875.91 | 110,393,875.91 |
Basis for division of each stage and provision ratio for bad debts
Changes in book balance with significant changes in the current period of provision for loss
□ Applicable √ Not applicable
4) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in the current period:
Unit: yuan
| Class | Balance at the beginning of the period | Amount of change in the current period | Closing Balance | |||
| Accrual | Recovered or reversed | Write off/verification | Others | |||
Provision forbad debt
| Provision for bad debt | 110,391,987.66 | 342,741.83 | 340,853.58 | 110,393,875.91 |
Total
| Total | 110,391,987.66 | 342,741.83 | 340,853.58 | 110,393,875.91 |
Where the amount of bad debt provision reversed or recovered is important:
Unit: yuan
| Unit name | Amount recovered or reversed | Reasons | Recovery way | The rationale behind determining the original provision ratio for bad debts and its justification |
5) Other receivable actually written off at the current period
Unit: yuan
| Item | Amount written off |
Write-off of important other receivables:
Unit: yuan
| Unit name | Nature of other receivables | Amount written off | Reasons for write-off | Write-off procedures performed | Whether the payments arise from connected transactions |
Description of write-off of other receivables
6) Other receivables with Top 5 ending balances by debtor
Unit: yuan
| Unit name | Nature of payment | Closing Balance | Aging | Proportion in total other ending balance receivable | Ending balance of bad debt provision |
First
| First | Compensation for investment and construction project of Winner Medical (Heyuan) | 220,155,320.00 | 4-5 years | 97.22% | 110,077,660.00 |
Second
| Second | Margin and deposit | 2,311,115.80 | 3-4 years | 1.02% | 115,555.79 |
Third
| Third | Margin and deposit | 399,599.00 | 2-3 years | 0.18% | 19,979.95 |
Fourth
| Fourth | Margin and deposit | 370,000.00 | Within 1 year, 1-2 year(s) | 0.16% | 18,500.00 |
Fifth
| Fifth | Margin and deposit | 130,028.00 | Within 1 year | 0.06% | 6,501.40 |
Total
| Total | Margin and deposit | 223,366,062.80 | 98.64% | 110,238,197.14 |
7) Recorded under other receivables due to centralized fund management
Unit: yuanOther description:
3. Long-Term Equity Investment
Unit: yuan
| Item | Closing Balance | Balance at the beginning of the period | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
Investment insubsidiaries
| Investment in subsidiaries | 4,041,503,753.14 | 4,086,994.48 | 4,037,416,758.66 | 3,612,018,476.28 | 4,086,994.48 | 3,607,931,481.80 |
Investment inassociatedenterprises andjoint enterprises
| Investment in associated enterprises and joint enterprises | 20,492,230.33 | 20,492,230.33 | 20,377,034.07 | 20,377,034.07 |
Total
| Total | 4,061,995,983.47 | 4,086,994.48 | 4,057,908,988.99 | 3,632,395,510.35 | 4,086,994.48 | 3,628,308,515.87 |
(1) Investment in subsidiaries
Unit: yuan
| Invested unit | Beginning balance (book value) | Opening balance of provision for impairment | Increase or decrease in the current period | Ending balance (book value) | Ending balance of impairment provision | |||
| Further investment | Capital reduction | Provision for impairment | Others | |||||
WinnerMedical(Huanggang)
| Winner Medical (Huanggang) | 267,491,627.79 | 267,491,627.79 |
WinnerMedical(Jingmen)
| Winner Medical (Jingmen) | 27,242,761.31 | 27,242,761.31 |
ShenzhenPurcotton
| Shenzhen Purcotton | 131,058,457.65 | 1,411,276.86 | 132,469,734.51 |
WinnerMedical(Chongyang)
| Winner Medical (Chongyang) | 33,629,806.08 | 33,629,806.08 |
WinnerMedical(Jiayu)
| Winner Medical (Jiayu) | 236,436,595.28 | 236,436,595.28 |
WinnerMedical(Tianmen)
| Winner Medical (Tianmen) | 39,697,276.28 | 39,697,276.28 |
WinnerMedical(Hong Kong)
| Winner Medical (Hong Kong) | 1,456,720.00 | 1,456,720.00 |
WinnerMedical(Yichang)
| Winner Medical (Yichang) | 18,595,897.41 | 18,595,897.41 |
WinnerMedicalMalaysia
| Winner Medical Malaysia | 4,086,994.48 | 4,086,994.48 |
WinnerMedical(Heyuan)
| Winner Medical (Heyuan) | 100,000,000.00 | 100,000,000.00 |
WinnerMedical(Wuhan)
| Winner Medical (Wuhan) | 400,000,000.00 | 400,000,000.00 |
PureH2B
| PureH2B | 150,000,000.00 | 150,000,000.00 |
ZhejiangLongterm
| Zhejiang Longterm | 727,540,000.00 | 727,540,000.00 |
Guilin Latex
| Guilin Latex | 500,000,000.00 | 500,000,000.00 |
WinnerMedical(Hunan)
| Winner Medical (Hunan) | 751,921,500.00 | 751,921,500.00 |
JunjianMedical
| Junjian Medical | 192,000,000.00 | 192,000,000.00 |
ShanghaiHongsong
| Shanghai Hongsong | 30,000,000.00 | 30,000,000.00 |
Pan-China(H.K.)
| Pan-China (H.K.) | 860,840.00 | 428,074,000.00 | 428,934,840.00 |
Total
| Total | 3,607,931,481.80 | 4,086,994.48 | 428,074,000.00 | 1,411,276.86 | 4,037,416,758.66 | 4,086,994.48 |
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
| Invested entity | Beginning balance (book value) | Opening balance of provision for impairment | Increase or decrease in the current period | Ending balance (book value) | Ending balance of impairment provision | |||||||
| Further investment | Capital reduction | Investment gains and losses recognized by the equity method | Adjustment of other comprehensive income | Changes in other equity | Declared payment of cash dividends or profits | Provision for impairment | Others | |||||
I. Joint
ventures
| I. Joint ventures |
II. Cooperativ
e enterprise
| II. Cooperative enterprise |
ChengduWinnerLikangMedicalProducts Co.,Ltd.
| Chengdu Winner Likang Medical Products Co., Ltd. | 20,377,034.07 | 115,196.26 | 20,492,230.33 |
Subtotal
| Subtotal | 20,377,034.07 | 115,196.26 | 20,492,230.33 |
Total
| Total | 20,377,034.07 | 115,196.26 | 20,492,230.33 |
The recoverable amount is determined according to the higher of the net amount of the assets fair value subtracted by the disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not applicable
Reasons for the apparent inconsistency between the aforementioned information and the data used in impairment testing in prior years orexternal information
Reasons for the variance between the information utilized in the Company’s impairment testing in prior years and the actual circumstances ofthe current year
(3) Other description
4. Revenue and Cost
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
Main business
| Main business | 1,108,269,598.31 | 842,869,692.65 | 1,649,626,729.34 | 1,102,744,068.83 |
Other businesses
| Other businesses | 34,615,567.06 | 1,013,798.51 | 39,358,109.10 | 4,490,396.82 |
Total
| Total | 1,142,885,165.37 | 843,883,491.16 | 1,688,984,838.44 | 1,107,234,465.65 |
Breakdown of operating revenues and cost of sale:
Unit: yuan
| Contract classification | Segment 1 | Segment 2 | Total | |||||
| Revenue | Cost of sale | Revenue | Cost of sale | Revenue | Cost of sale | Revenue | Cost of sale | |
Business type
| Business type |
Including:
| Including: |
Classified by operating area
| Classified by operating area |
Including:
| Including: |
Type of markets or clients
| Type of markets or clients |
Including:
| Including: |
Type of contracts
| Type of contracts |
Including:
| Including: |
Sorted by time of goods transfer
| Sorted by time of goods transfer |
Including:
| Including: |
Sorted by contract duration
| Sorted by contract duration |
Including:
| Including: |
Sorted by sales channels
| Sorted by sales channels |
Including:
| Including: |
Total
| Total |
Information related to performance obligations:
| Item | Time to fulfill performance obligations | Important payment terms | The nature of the goods the Company promises to transfer | Is he the main responsible person? | Amounts borne by the Company that are expected to be refunded to customers | Types of quality assurance provided by the Company and related obligations |
Other description
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations signed but not yet performed or completed at the end of this reportingperiod is RMB 0.00, of which RMB 0.00 is expected to be recognized as revenue in year 0, RMB 0.00 is expected to be recognized as revenuein year 0, and RMB 0.00 is expected to be recognized as revenue in year 0.
Major contract changes or major transaction price adjustments
Unit: yuan
| Item | Accounting treatment methods | Amount of impact on revenue |
Other description:
5. Investment Income
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in previous period |
Long-term equity investment gains measured by employing the equitymethod
| Long-term equity investment gains measured by employing the equity method | 115,196.26 | 1,580,818.74 |
Investment income from purchasing financial products
| Investment income from purchasing financial products | 38,973,085.80 | 31,943,539.75 |
Total
| Total | 39,088,282.06 | 33,524,358.49 |
6. Others
XX. Further Information
1. Statement of Current Non-Recurring Gain and LOSS
√Applicable □ Not applicable
Unit: yuan
| Item | Amount | Description |
Profit and loss on disposal of non-current assets
| Profit and loss on disposal of non-current assets | -2,531,199.34 |
Government grants recognized in the current period’s profit or loss (excludinggrants closely related to the Company’s regular business operations, aligned withnational policies, and meeting specific criteria with a continuous impact on theCompany’s profit or loss)
| Government grants recognized in the current period’s profit or loss (excluding grants closely related to the Company’s regular business operations, aligned with national policies, and meeting specific criteria with a continuous impact on the Company’s profit or loss) | 16,329,769.68 |
Gains and losses from changes in the fair value of financial assets and liabilitiesheld by non-financial corporations, and gains and losses from the disposal offinancial assets and liabilities, excluding effective hedging operations related tothe Company’s regular business operations
| Gains and losses from changes in the fair value of financial assets and liabilities held by non-financial corporations, and gains and losses from the disposal of financial assets and liabilities, excluding effective hedging operations related to the Company’s regular business operations | 48,692,022.79 |
Income and expenditure other than those mentioned above
| Income and expenditure other than those mentioned above | 4,384,196.12 |
Less: Amount affected by income tax
| Less: Amount affected by income tax | 10,326,267.54 |
Amount of minority shareholders’ equity affected (after tax)
| Amount of minority shareholders’ equity affected (after tax) | -686,742.68 |
Total
| Total | 57,235,264.39 | -- |
Other profit and loss items that are consistent with the definition of non-recurring profit and loss:
□ Applicable √ Not applicable
There was no other profit and loss items that are consistent with the definition of non-recurring profit and loss.
Explanation on defining the non-recurring profit and loss items enumerated in the Interpretative Announcement No. 1 on InformationDisclosure of Public Securities Issuing Companies - Non-recurring Profits and Losses as recurring profit and loss items
□ Applicable √ Not applicable
2. Return on Net Assets and Earnings Per Share
| Reporting profit | Weighted average return on net assets | Earnings Per Share | |
| Basic EPS (yuan/share) | Diluted EPS (yuan/share) | ||
Net profit attributable to commonshareholders of the Company
| Net profit attributable to common shareholders of the Company | 3.31% | 0.6568 | 0.6568 |
Net profit attributable to commonshareholders of the Company afterdeduction of non-recurring profits andlosses
| Net profit attributable to common shareholders of the Company after deduction of non-recurring profits and losses | 2.81% | 0.5589 | 0.5589 |
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) The difference between net profits and net assets in financial statements disclosed according to the International Accounting Standards
(IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(2) The difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards
(IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the difference adjustment has been
made to the data audited by the overseas audit institution, the name of the overseas audit institution shall be indicated
□ Applicable √ Not applicable
4. Others