Caring Health
Cherishing Life And
Protecting The Environment
For A Better World!
2025
Semi-annual Report
Winner Medical Co. Ltd.Brand Vision
Caring Health Cherishing Life and Protecting the Environment for A Better World.Core Business Principles
Quality over the Profit Brand over the Speed Social Value over the Corporate Value
Brand Ethics
Integrity in Operation Respect for Consumers Fair Competition Social Responsibility
Intellectual Property Rights Continuous ImprovementSection I
Important Notes
Contents and
Definitions
Cotton Thrives Deserts Retreat.3
Section I Important Notes Contents and Definitions
Important Notes
The Board of Directors the Supervisory Committee and the Directors Supervisors and senior
management of the Company guarantee that this semi-annual report is truthful accurate and
complete; it contains no false records misleading statements or significant omissions; and they
bear individual and joint legal liabilities.Li Jianquan the Company’s principal executive officer Fang Xiuyuan financial controller and
Zhao Yan accounting supervisor (chief accounting officer) declare that they guarantee the
truthfulness accuracy and completeness of the financial report in this semi-annual report.All Directors have attended the Board of Directors meeting to review this semi-annual report.The forward-looking statements contained in this semi-annual report regarding future
development strategies performance plans and other similar matters represent the Company’s
goals and are of a planning nature. Their realization depends on various factors including
changes in market conditions and therefore involves uncertainties. These statements do not
constitute a forecast of the Company’s future profitability nor do they represent a substantive
commitment to investors or other stakeholders. Both investors and other stakeholders should
maintain sufficient awareness of the risks involved and understand the differences between plans
forecasts and commitments. Investors are advised to exercise caution and be aware of investment
risks.The profit distribution plan approved at this Board of Directors meeting is as follows: based on
582329808 shares a cash dividend of RMB4.50 (tax inclusive) for every 10 shares will be
distributed to all shareholders. No bonus shares (tax inclusive) will be distributed and no shares
will be converted from capital reserves.4
Section I Important Notes Contents and Definitions
CONTENTS
02 Section I Important Notes Contents and Definitions
06 Section II Company Profile and Key Financial
Indicators
13 Section III Management Discussion and Analysis
45 Section IV Corporate Governance Environmental and
Social Responsibilities
50 Section V Important Matters
55 Section VI Changes in Shares and Information on
Shareholders
61 Section VII Bonds
62 Section VIII Financial Report
List of Documents Available for Inspection
(I) Financial statements signed and sealed by the Company’s principal executive
officer financial controller and accounting supervisor (chief accounting officer).(II) Originals of all documents and announcements of the Company publicly disclosed
during the Reporting Period.5
Section I Important Notes Contents and Definitions
Definitions
Term Refers to Definition
Winner Group Company Refers to Winner Medical Co. Ltd.Reporting period Refers to From 1 January 2025 to 30 June 2025
Winner Medical Refers to Serious medical care under the medical sector and consumer medical care sector
Purcotton Refers to Shenzhen Purcotton Technology Co. Ltd. a wholly-owned subsidiary of the Company
Zhejiang Longterm Medical Technology Co. Ltd. a company in which the Company acquired a 55% stake in
Longterm Medical Refers to
2022
Winner Medical (Hunan) Co. Ltd. a company in which the Company acquired a 68.70% stake after
Winner Medical (Hunan) Refers to
acquisition and capital increase in 2022
Winner Guilin Refers to Winner Guilin Latex Co. Ltd. a company in which the Company acquired a 91.74% stake in 2022
Junjian Medical Refers to Shenzhen Junjian Medical Device Co. Ltd. a company in which the Company acquired a 100% stake in 2022
Global Resources International Inc. a company in which the Company acquired a 75.20% stake in September
GRI Refers to
2024
Winner Medical
Refers to Winner Medical (Huanggang) Co. Ltd. a wholly-owned subsidiary of the Company
(Huanggang)
Winner Medical (Jiayu) Refers to Winner Medical (Jiayu) Co. Ltd. a wholly-owned subsidiary of the Company
Winner Medical
Refers to Winner Medical (Chongyang) Co. Ltd. a wholly-owned subsidiary of the Company
(Chongyang)
Winner Medical
Refers to Winner Medical (Jingmen) Co. Ltd. a wholly-owned subsidiary of the Company
(Jingmen)
Yuan Refers to Renminbi (RMB)6
Section II Company Profile and Key Financial Indicators
Section II
Company Profile
and Key
Financial
Indicators
PurCotton Surgical Cap
PurCotton Surgical
Scrub Suit
PurCotton Radiation-Shielding
Neck Gaiter
Face Mask with
PurCotton Surgical Hand PurCotton Inner Layer
PurCotton Non-woven
Towel
Dressing
PurCotton Surgical
PurCotton Surgical Drapes Gown
with Fenestration
PurCotton Gauze Product
Series7
Section II Company Profile and Key Financial Indicators
Company Overview
Founded in 1991 Winner Group (300888.SZ) went public on the Shenzhen Stock Exchange in September 2020. Through 34 years of exploration and
practice it has evolved into a holistic health enterprise synergistically converging medical innovation and consumer wellness ecosystems. Winner Group
driven by the vision of “Caring Health Cherishing Life and Protecting the Environment for A Better World” owns two major brands: “Winner Medical”
and “Purcotton”. Its products cover a wide range of segments including wound care infection prevention operating room consumables personal carehome care maternity and baby care and home textiles and apparel. The Company follows the core business principles of “Quali ty over the Profit Brandover the Speed Social Value over the Corporate Value” guided by a development strategy focused on “Product leadership Operational excellenceGlobal vision”. Winner Group is committed to pursuing dual-track advancement in medical and consumer goods sectors; driving collaborative expansion
across domestic and global markets; enabling convergent growth of online and offline channels; upholding altruism and long-termism — committed to
delivering safe premium cost-effective and experience-driven products and services for global users
Caring Health Cherishing Life and Protecting the Environment for A
Better World.To build a “one-stop solution for medical consumables” through both organic To embrace pure cotton and maximize the potential of each piece of cotton
and inorganic growth towards the vision of “Pure Cotton Changes the World”
Product Leadership Operational Excellence Global Vision
1) Brand advancement with emphasis on continuous
1) Commitment to innovation in basic materials under the 246+6 1) A global vision means having a worldwide vision and paving
interpretation and communication of brand philosophy and
principle the way for robust internationalization
values
2) Focus on core popular products to ensure a leading market 2) Robust internationalization is not simply about exporting
2) Standardization of basic management processes digitization
share in strategic categories and drive growth in niche segments products but about becoming a truly international brand
of process management implementation of intelligent digital
management and optimization of omni-channel basic operational
management
Core Business Principles:
Quality over the Profit Brand over the Speed Social Value over the Corporate Value
Brand Ethics:
Integrity in Operation Respect for Consumers Fair Competition Social Responsibility Intellectual Property Rights Continuous Improvement8
Section II Company Profile and Key Financial Indicators
Product Portfolio9
Section II Company Profile and Key Financial Indicators
Global Production Capacity
Establishing a Leading Global Product Supply Chain System
Unit Location of Facilities
Wuhan Huanggang Yichang Tianmen Jingmen Jiayu Chongyang in Hubei Province; Shenzhen Guangdong
? Winner
Province
? Longterm Deqing County Huzhou City Zhejiang Province; Monterrey Nuevo León Mexico
? Winner Medical (Hunan) Changde City Hunan Province
? Winner Guilin Guilin City Guangxi Zhuang Autonomous Region; Jingzhou Hubei Province
Tennessee USA; Alabama USA; Dominican; Hai Phong Vietnam; Jiaxing Zhejiang Province; Wuhu Anhui
? GRI
Province
Supply chain10
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation Winner Medical Stock Code 300888
Stock Exchange Shenzhen Stock Exchange
Chinese Name 稳健医疗用品股份有限公司
Abbreviated Chinese Name (if any) 稳健集团
English Name (if any) Winner Medical Co. Ltd.Abbreviated English Name (if any) Winner Medical
Legal Representative Li Jianquan
II. Contact Information
Board Secretary Securities Representatives
Name Chen Huixuan Xu Jia Liu Yanxiang
Address F42 Building 2 Huilong Business Center Beizhan F42 Building 2 Huilong Business Center Beizhan
Community Minzhi Subdistrict Longhua District Shenzhen Community Minzhi Subdistrict Longhua District
Shenzhen
Tel. 0755-28066858 0755-28066858
Email 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 reporting period
□Applicable √N/A
There is no change in the Company’s registered address office address and postal code Company website and email during the reporting period as
shown in 2024 annual report.
2. Designated Locations for Information Disclosure and for Keeping Records
Whether information disclosure and the place where the semi-annual report is kept were changed during the reporting period
□Applicable √N/A
The name and URL of the stock exchange website and media for publishing the semi-annual report and the place where the semi-annual report is kept
were not changed during the reporting period. See the 2024 Annual Report for details.11
Section II Company Profile and Key Financial Indicators
3. Change of Registration
Whether the registration status was changed during the reporting period
□Applicable √N/A
There were no changes in the Company's registration during the reporting period. See the 2024 Annual Report for details.IV. Key Accounting Data and Financial Indicators
Does the Company need to retrospectively adjust or restate accounting data of previous year
□Yes √No
Increase/decrease in this reporting
Current reporting period Same period last year period compared with the same
period of the previous year
Operating revenue (RMB) 5296211956.92 4033505104.33 31.31% Note 1
Net profit attributable to shareholders of the
491998009.07384150379.2128.07%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring 460623731.26 326915114.82 40.90% Note 2
gains and losses (RMB)
Net cash flow from operating activities (RMB) 339925774.07 193333516.76 75.82% Note 3
Basic earnings per share (RMB/share) 0.8449 0.6568 28.64%
Diluted earnings per share (RMB/share) 0.8449 0.6568 28.64%
Weighted average return on net assets 4.32% 3.31% 1.01%
End of the reporting period End of the previous year Change from the end of last year
Total assets (RMB) 18017761901.94 18391855961.52 -2.03%
Net assets attributable to shareholders of the
11523008936.9411151279644.563.33%
listed company (RMB)
Note 1: Driven by both endogenous and exogenous growth operating revenue grew by 31.31% compared with the same period last year. The medical segment
achieved operating revenue of RMB 2.52 billion representing a year-on-year increase of 46.4% (or 13.2% like-for-like growth excluding GRI contributions).Meanwhile the consumer goods segment recorded a year-on-year increase of 20.3%.Note 2: Net profit attributable to the parent company excluding non-recurring items increased by 40.9% year-over-year. This was primarily driven by revenue
growth during the period and an increase in net profit attributable to the parent compamy. As non-recurring gains and losses were lower compared with the same
period last year the growth rate of net profit attributable to shareholders after deducting non-recurring items was higher than the growth rate before such deductions.Note 3: Net cash flow from operating activities increased by 75.82% compared to the same period last year mainly due to the continuous improvement of the
Company’s working capital management
V. Differences in Accounting Data under Domestic and Overseas Accounting Standards
1. Differences in net profit and net assets between financial reports prepared under International
Accounting Standards and Chinese Accounting Standards
□Applicable √N/A
The Company had no difference in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese
Accounting Standards during the Reporting Period.12
Section II Company Profile and Key Financial Indicators
2. Differences in net profit and net assets between financial reports prepared under overseas accounting
standards and Chinese Accounting Standards
□Applicable √N/A
The Company had no difference in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese
Accounting Standards during the Reporting Period.VI. Items and Amounts of Non-recurring Gains and Losses
√Applicable □N/A
Unit: RMB
Items Amount Explanation
Gains and losses on disposal of non-current assets (including reversal of previously recognized
-6664001.60
impairment losses)
Government grants recognized in profit or loss (excluding those related to the company’s normal
operating activities consistent with national policy granted based on established criteria and having a 19741844.15
continuing impact on the Company’s profit and loss)
Changes in fair value and gains and losses from the disposal of financial assets and financial liabilities
held by non-financial enterprises (excluding effective hedging transactions directly related to the 31133359.39
Company’s normal operating activities)
Other non-operating income and expenses excluding the items above -5436207.80
Less: Income tax effect 6117613.09
Effect on non-controlling interests (after tax) 1283103.24
Total 31374277.81
Details of other items classified as non-recurring gains and losses:
□Applicable √N/A
The Company had no details of other items classified as non-recurring gains and losses.Explanation on circumstances under which items specifically identified as non-recurring gains and losses in the Information Disclosure Interpretative
Announcement No. 1 for Companies Publicly Issuing Securities – Non-recurring Gains and Losses are classified as items of recurring gains and losses
√Applicable □N/A
Items Reason
Complies with national policy regulations meets established standards and has a continuing
Cotton transportation subsidies
impact on profit or loss
Interest income from large-denomination
The Company’s routine cash management practices with a continuing impact on profit or loss
certificates of deposit13
Section III Management Discussion and Analysis
Section III
Management
Discussion and
Analysis14
Section III Management Discussion and Analysis
I. Main Operations
The company shall comply with the disclosure requirements of the “Medical Device Business” in the Self-Regulatory Guidelines for Listed Companies
on the Shenzhen Stock Exchange No. 4 – Industry Information Disclosure of the Growth Enterprise Market.：
The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company
Self-Regulation Guidelines No. 3 – Industry Information Disclosure.(I) Main operations of the Company
Winner Group driven by the vision of “Caring Health Cherishing Life and Protecting the Environment for A Better World” owns two major brands:
“Winner Medical” and “Purcotton” specializing in medical and consumer segments respectively. With continuous innovation and expansion of our
business scope our products cover a wide range of segments including wound care infection prevention operating room consumables personal carehome care maternity and baby care and home textiles and apparel. Adhering to the core business principles of “Quality over the Profit Brand over theSpeed Social Value over the Corporate Value” and guided by the development strategy of “Product Leadership Operational Excellence Global Vision”
the Company dedicates itself to providing safe high-quality cost-effective products and services with a strong user experience for customers worldwide.15
Section III Management Discussion and Analysis
1. Medical consumables 2. Consumer goods
In the 1990s the international medical dressing market was To address the global industry challenge of cotton gauze shedding lint
dominated by European and American companies in terms of and fluff the Winner Medical team conducted thousands of
technical standards and market share. Domestic Chinese products experiments and developed a patented pure cotton spunlace non-
lacked competitiveness due to lagging production standards and woven fabric technology. Capitalizing on the natural soft breathable
inconsistent quality. Against this backdrop driven by the vision of biodegradable and eco-friendly properties of cotton fiber the Group
“Bringing Chinese Medical Dressings to the World” Mr. Li launched the brand Purcotton in 2009 innovatively applying medical-
Jianquan the founder of Winner Group established the Winner grade production standards to daily pure cotton consumer goods.Medical brand in 1991. Over three decades of development Winner From its inception Purcotton has insisted on using high-qualityMedical has built a complete industrial chain encompassing “raw cotton from around the world maintaining strict quality control andmaterial procurement – core material R&D – product manufacturing aiming to build a nationally trusted brand. Driven by the vision of– terminal sales”. Through continuous R&D and upgrades the “Pure Cotton Changes the World” Purcotton continuously promotes
Company’s product portfolio has been optimized and now includes the benefits of cotton and has pioneered over ten new product
traditional wound care and bandaging advanced wound dressings categories including cotton tissues pure cotton top sheet sanitary
operating room consumables infection prevention and healthcare & napkins and pure cotton top sheet diapers. Currently Purcotton
personal care products. Winner Medical has maintained stringent operates hundreds of brand stores in over 100 cities across China and
quality standards throughout its development establishing an has established an omni-channel sales network across major e-
internationallevel quality management system early on in the commerce platforms social commerce platforms and nationally
industry. Its products have received authoritative international renowned supermarket chains. Leveraging its core competitive edges
certifications including the EU CE marking US FDA clearance of “Medical Heritage Cotton-Centric Philosophy Quality DNA”and Japanese Ministry of Health Labour and Welfare approval. Purcotton has cultivated a brand image of “Comfort CommitmentWith production capacity in China the United States Vietnam and Health Assurance Eco-Consciousness” earning the favor of a broad
the Dominican Republic Winner Medical has established global consumer base. In the future Purcotton will remain committed to itscredibility and supply capabilities as a professional medical brand. brand initial aspiration of “We focus on 100% cotton and unlock itsIn terms of distribution Winner Medical pursues a three-pronged full potential to develop the high standard with the best quality ofstrategy—overseas business + domestic critical healthcare + daily cotton products” creating and leading a “Reassurance Wellbeingconsumer healthcare. Through OEM ODM and its own brand Sustainability” pure cotton lifestyle.Winner Medical exports to over 110 countries and regions. This
brand’s high quality has earned widespread recognition from
hospitals and trust from consumers in the domestic market resulting
in higher brand awareness and a stronger reputation. Looking ahead
Winner Medical will accelerate R&D in biomedical and tissue
engineering adhering to the innovation philosophy of technology-
driven development and product upgrades prioritizing product
leadership and advancements in basic materials. By integrating
Chinese manufacturing with the global supply chain and expanding
into global markets Winner Medical continues to advance towardsits strategic goal of becoming a “one-stop solution for medicalconsumables”.16
Section III Management Discussion and Analysis
(II) Main products and applications
The Company’s products in the medical segment include traditional wound care and bandaging advanced wound dressings operating room consumables
infection prevention healthcare & personal care and other products. The products in the consumer segment include dry and wet cotton tissues sanitary
napkins other non-woven products baby and child apparel and products adult apparel and other woven products.The main product categories and illustrations of some products in the Company’s medical segment are shown below:
Traditional wound care and Advanced wound dressings Operating room consumables
bandaging
Main Applications Main Applications Main Applications
Applied in wound exudate absorbing wound Applied in wound care to provide a moist Applied in prevention of surgical site infections
dressing and sports protection wound healing environment reduce dressing
change frequency and minimize further trauma
Specic Products Specic Products Specic Products
Medical cotton gauze bandage Silicone dressings alginate dressings super Surgical gloves surgical packs surgical gowns
absorbent dressings etc. etc.Healthcare & personal
Infection prevention
care Other products
Main Applications Main Applications Main Applications
Applied in occupational protection for medical Applied in wound cleaning and disinfection Applied in health management to meet medical
personnel and patient isolation daily healthcare needs
Specic Products Specic Products Specic Products
Face masks protective clothing isolation gowns Wound disinfectant iodophor disinfectant Injection and puncture products test kits etc.gloves shoe covers caps etc. tablets oral and nasal care medical-aesthetic
personal care nursing aids etc.17
Section III Management Discussion and Analysis
The main product categories and illustrations of some products in the Company’s consumer segment are shown below:
Other non-woven
Dry and wet cotton tissues Sanitary napkins
products
Specic Products Specic Products Specic Products
Cotton tissues wet wipes etc. Sanitary napkins overnight pads etc. Facial masks cotton pads diapers disposable
underwear etc.Baby and child apparel and
Adult apparel Other woven products
products
Specic Products Specic Products Specic Products
Baby and children’s sleepwear outerwear Adult sleepwear outerwear underwear socks Bedding bath products etc.underwear bath towels handkerchiefs swaddles etc.etc.18
Section III Management Discussion and Analysis
(III) Main business model In procurement we utilize diverse strategies including strategic
sourcing and centralized purchasing combined with mechanisms
such as supplier qualification tiered classification management and
Over the three decades of continuous exploration and development performance evaluation to build a sustainable supply chain
Winner Group’s business model has undergone significant ecosystem. We leverage digital systems like SRM and SCM to
transformation and upgrading. Our business scope has expanded achieve transparent full-process control and strengthen cost and risk
from medical products to consumer goods; our business model has management. In production aligned with the Company’s strategic
shifted from OEM to proprietary brand building from B2B to B2C objectives we use Sales & Operations Planning (S&OP) to guide the
from a sole focus on overseas markets to a balanced approach development of medium – and long-term strategic plans and short-
between domestic and international markets; and our listing status term production and procurement plans. This process involves all
has transitioned from voluntary de-listing on the US Nasdaq to relevant upstream and downstream departments balancing inventorylisting on China’s A-share market. We have evolved from “Made in and lead times based on dynamic customer demand to ensure flexibleChina” to “Created in China” from product export to brand production and efficient responsiveness. In sales Winner Medical has
empowerment and ultimately to thought leadership. established a professional sales network within the medical industry
covering a vast number of medical institutions and retail pharmacies
Currently based on digitalization and intelligent technologies and exporting medical consumables to numerous countries and
Winner Group has established an integrated operating system regions worldwide. Purcotton employs an omni-channel sales strategy
encompassing R&D procurement production and sales. In R&D in the consumer goods market covering major e-commerce and social
we focus on independent development of core basic materials and media platforms online while operating brand stores in key cities and
continuous iteration and upgrading of key product categories. Our entering various supermarkets baby stores and other retail outlets
medical sector actively pursues global patent and product offline. This online-offline integration enhances consumer experience
registration strategies while our consumer goods business leads the and strengthens brand influence.development of several national standards. Simultaneously we
actively promote smart manufacturing and green manufacturing
technologies to enhance production efficiency and energy
management.19
Section III Management Discussion and Analysis
Winner Medical
Medical consumables
Purcotton
Consumer goods20
Section III Management Discussion and Analysis
(IV) Key performance drivers Winner Group began with its medical consumables business
cultivating the industry for over three decades. It is one of the first
domestic companies to establish a fully integrated industrial chain
1. Alignment with industry trends: medical and consumer encompassing “raw material procurement – core material R&D –sectors in rapid development product manufacturing – terminal sales”. Winner Medical maintains
stringent quality standards throughout its history and established an
In recent years improvements in global healthcare standards and international-level quality management system at the initial stage of
increasing demand for daily healthcare have driven a steady growth its engagement in the industry. Its products have received
in the medical industry. Globally the aging population and rising authoritative international certifications including the EU CE
healthcare needs are expanding the medical device market marking US FDA clearance and Japanese Ministry of Health
providing ample room for industry development. Domestically Labour and Welfare approval establishing global credibility for the
increasing government support for the medical device industry and brand. Through strategic acquisitions of leading companies in niche
accelerated import substitution are creating a favorable environment segments such as Longterm Medical Winner Medical (Hunan) and
for medical consumables. Furthermore the implementation of Winner Guilin Winner Medical rapidly entered the injection and
policies such as centralized procurement volume-based puncture consumables and latex gloves markets laying the foundation
procurement SPD and DRG is continuously optimizing the medical for a one-stop medical consumables solution. Furthermore the
consumables industry towards stricter quality standards transparent Company continuously invests in R&D optimizes its product
competition and higher requirements for comprehensive capabilities portfolio and upgrades its advanced wound dressings operating room
in R&D service and distribution. These industry changes benefit consumables and healthcare & personal care products increasing the
large integrated companies and are expected to increase industry proportion of high-value-added products. Winner Medical pursues a
concentration. three-pronged strategy—overseas business + domestic critical
healthcare + daily consumer healthcare. In particular the Company’s
In the consumer goods industry steady macroeconomic recovery rapid provision of high-quality products of recent years significantly
and stable income growth are contributing to a positive trend of enhanced brand awareness and reputation leading to the rapid
recovery and growth. The consumer market is diversifying and development of its distribution channels. While strengthening its core
becoming more personalized with notable trends including quality business Winner Medical also accelerates its global expansion
consumption environmentally sustainable consumption Guochao through mergers and acquisitions. The acquisition of a controlling
economy and brand trust. Consumers’ pursuit of a better life interest in the USbased medical company GRI strengthens its
increases their willingness to pay premium prices for high-quality overseas production capacity sales channels and localized
products and services creating significant market opportunities for operations. In the future Winner Medical will continue to advancecompanies focused on quality enhancement and emotional value. towards its strategic goal of becoming a “one-stop solution forThe growing consumer preference for green and environmentally medical consumables”.friendly products is driving companies to increase investment and
innovation in sustainable development. The increasing popularity of Purcotton the Winner Group’s consumer goods brand wasGuochao economy favors products with cultural significance and established in 2009 with the vision of “Pure Cotton Changes thenational characteristics. Brand trust is becoming a competitive World”. Adhering to the principle of “We focus on 100% cotton andbarrier with consumers increasingly choosing brands that unlock its full potential to develop the high standard with the bestconsistently deliver reliable quality and excellent service. quality of cotton products” Purcotton continuously promotes the
Additionally niche segments such as healthfocused consumption benefits of cotton and has built a unique business model focused on
self-care consumption and aesthetically driven consumption are “pure cotton all categories all people”. In terms of products
expanding rapidly. The current consumer market offers substantial Purcotton insists on using high-quality cotton from around the world
growth potential and opportunities for companies that can applies medical-grade management standards to consumer goods
effectively identify and adapt to trends. production actively implements a popular product strategy
continuously leverages technology and innovation to meet consumer
needs and has developed popular product categories such as cotton 2. Differentiated competitive advantages accelerating business
tissues sanitary napkins newborn products and intimate wear. Many
growth
of these categories hold leading market positions driving overall
sales growth. In terms of distribution Purcotton employs anDriven by the brand vision of “Caring Health Cherishing Life and omnichannel strategy covering major e-commerce platforms socialProtecting the Environment for A Better World” Winner Group is commerce platforms and brand supermarkets. It also operates its own
pursuing dual-track advancement in medical and consumer goods brand stores offline serving as platforms for brand promotion
sectors; driving collaborative expansion across domestic and global product experience and customer service. This online-offline synergy
markets; enabling convergent growth of online and offline channels; drives overall quality and growth. In brand building Purcotton
upholding altruism and long-termism. and continues to strive leverages celebrity endorsements original IP and cotton field runway
towards Centennial Visionary Winner guided by the development shows to expand brand influence. With its core competitive edges of
strategy of “Product Leadership Operational Excellence Global “Medical Heritage Cotton-Centric Philosophy Quality DNA”Vision”. Purcotton has cultivated a brand image of “Comfort CommitmentHealth Assurance Eco-Consciousness” and has become a nationally
trusted brand.21
Section III Management Discussion and Analysis
II. Core Competitiveness Analysis
1. Dual-Engine growth: medical and consumer 4. Product leadership: innovation-driven
synergies for enhanced risk resilience quality development
Winner Group operates as a holistic health enterprise synergistically Winner Group upholds a “Product Leadership” strategy driving
converging medical innovation and consumer wellness ecosystems development through innovation and consistently delivering
through its Winner Medical and Purcotton brands. The Company’s highquality products. In the medical field we focus on independent
business scope has expanded from solely medical consumables R&D of core basic materials and continuous iteration and upgrading
manufacturing to footprint in diverse fields including wound care of key product categories ensuring market-leading product
infection prevention personal care home care maternity and baby performance and quality. In the consumer goods field driven by the
care and home textiles and apparel. Winner Medical’s emphasis on vision of “Pure Cotton Changes the World” we select premium
product quality and innovative R&D forms the foundation of the cotton from around the globe as raw materials and apply medical-
Group’s development. Simultaneously the medical heritage in grade quality standards to create differentiated consumer products.quality control provides a solid foundation of quality for Purcotton’s We leverage market insights to rapidly launch new products that meet
safety and trust enhancing Purcotton’s professional credibility consumer needs and lead market trends. Furthermore the Company
brand reputation and customer loyalty. The synergistic and balanced promotes the transformation of research outcome through industry-
development of these two business segments creates complementary academia collaboration and actively explores cutting-edge fields like
growth engines strengthens the Company’s resilience against life sciences. Through continuous R&D investment the Company
economic cycles effectively balances shortterm industry leads and participates in the development of numerous national
fluctuations with long-term performance growth and establishes a standards and maintains a leading position in patent and product
solid foundation for high-quality development. registration numbers solidifying its industry leadership through
“Product Leadership”.
2. Long-termism: the cultural core for
development 5. Operational excellence: advanced
technologies for lean management
Winner Group embraces the long-termism and altruism philosophy
prioritizing brand ethics and adhering to compliant operations and Winner Group continuously promotes the implementation of its
sustainable development. We uphold the core business principles of Groupwide “Operational Excellence” strategy. In smart“Quality over the Profit Brand over the Speed Social Value over manufacturing we actively advance the automation and intelligentthe Corporate Value” to ensure high-quality products and services. upgrading of our production processes achieving automatedGuided by the values of “Relentless Endeavor Pioneering equipment operation throughout the entire process from raw materialsInnovation Self-Critique Long-Termism” we remain committed to to finished products. We also integrate digital and AI technologies to
our entrepreneurial spirit and brand-building mission. Throughout improve production efficiency and precision in product qualityour development we adhere to the brand ethics of “Integrity in control. In digital transformation we are committed to integratingOperation Respect for Consumers Fair Competition Social internal data links ensuring data consistency and integrated
Responsibility (ESG) Intellectual Property Rights Continuous management. By connecting with external data we are building aImprovement” integrating compliant operations and social CDP & MA digital marketing system to enhance interaction and
responsibility into our corporate development earning widespread connection with consumers and customers. In terms of refined
recognition and fueling brand building and long-term growth. channel operations we prioritize both online and offline channels.Physical stores enhance the consumer experience through optimized
3. Brand advancement towards Centennial layouts and improved services while online channels leverage precise
Visionary Winner management and targeted marketing to improve conversion and
repurchase rates. Simultaneously we utilize membership systems and
With a Centennial Visionary Winner Winner Group is committed to community operations to deepen customer relationships achieving
brand advancement. In the medical field Winner Medical has synergistic development and efficient operation across all channels.established a sound reputation for professionalism innovation and
high quality over 30 years becoming an industry benchmark. In the 6. Organization and talent: building an
consumer goods field Purcotton centering on cotton and leveraging international professional teamits core competitive edges of “Medical Heritage Cotton-CentricPhilosophy Quality DNA” has cultivated a brand image of Winner Group is dedicated to establishing a systematic organization
“Comfort Commitment Health Assurance Eco-Consciousness” and talent development program encompassing talent acquisition
creating differentiated brand advantages. Through continuous brand training assessment and incentives. The Company actively promotesbuilding and marketing both business segments enhance brand the Four-High Talent Philosophy – “High Personal Quality Highawareness and reputation establishing themselves as preferred Academic Qualifications High Performance High Compensation” –
choices for consumers. This strong brand recognition supports with the goal of developing Winner career partners and continuously
product sales and market expansion with the synergy between providing a nurturing environment for talent growth. In terms of
professional medical products and quality consumer goods forming organization the Company is building professional teams that supporta unique brand moat. integrated business operations focusing on “OrganizationalCapability Strategic Goal Enablement” and continuously improving
organizational efficiency through various methods. In terms of
incentives we actively implement performance-based sharing
systems to foster a results-oriented corporate culture. We also utilize
tools such as equity incentives and employee stock ownership plans
to enhance talent cohesion and centripetal force providing a solid
talent foundation for the Company’s sustainable development and
building a stable and internationally oriented professional team.22
Section III Management Discussion and Analysis
III. Analysis of Main Business
(I) Overview On the distribution front in the first half of 2025 the Company
pursued a three-pronged strategy—overseas business + domestic
critical healthcare + daily consumer healthcare—continuously
1. Financial performance analysis deepening efforts to expand marketing channels. During the period
international sales reached RMB1.43 billion up 81.3% year-on-year
In the first half of 2025 despite a challenging external environment (Excluding GRI overseas sales in the first half of the year increased
Winner Group positioned itself as a comprehensive health by 10.4% year-on-year). Domestic hospital channels continued to
enterprise driving synergistic development across the medical and expand steadily generating RMB410 million in revenue in the first
consumer sectors. Guided by its principle of “Brand Advancement” half of the year a 16.2% increase year-on-year. The daily consumer
the Company pursued innovation and breakthroughs with C-end business grew rapidly with e-commerce and domestic
determination. During the period the Company achieved cumulative pharmacies together contributing RMB450 million in revenue up
operating revenue of RMB5.30 billion a year-on-year increase of 33.2% year-on-year. By the end of the reporting period domestic e-
31.30%. Net profit attributable to shareholders of the listed commerce platforms had amassed 17.44 million followers—adding
Company reached RMB490 million while net profit after deducting more than 340000 in the first half—while healthcare-related products
non-recurring gains and losses was RMB460 million representing cover nearly 230000 domestic top-level chain pharmacies through
year-on-year growth of 28.1% and 40.9% respectively. the O2O instant retail platform of Meituan Pharmacy actively
strengthening the medical brand’s influence making professional
medical care accessible to the public's health.
(1) Medical consumables
(2) Consumer goodsIn the first half of 2025 supported by “accelerated internal growthmergers and acquisitions integration” the medical sector maintained
steady and positive overall development. During the reporting In the consumer goods sector Purcotton leverages its three coreperiod the medical sector achieved total revenue of RMB2.52 strengths — “Medical Heritage Cotton-Centric Philosophy Qualitybillion a year-on-year increase of 46.4%. In the second quarter DNA” — to continuously enhance its internal capabilities. In recent
revenue reached RMB 1.26 billion up 46.5% year-on-year. years the brand has actively improved its performance in category
Excluding contributions from the newly acquired company GRI the development channel operations and profitability. In the first half of
medical sector generated RMB1.95 billion in the first half of the 2025 Purcotton achieved revenue of RMB2.75 billion up 20.3%
year a 13.2% increase year-on-year with quarterly growth year-on-year. Both gross and operating margins showed steady
accelerating (Q2 revenue excluding GRI grew 15.3% year-on-year improvement reflecting strong overall growth momentum.compared to 11.1% in Q1).In terms of product categories the Company has strengthened
By category high-end wound dressings strengthened R&D starting communication with consumers actively promoting the benefits of
from foundational materials gradually building competitive all-cotton materials. Through factory traceability videos it has
advantages. Operating room consumables leveraged the advantages showcased the quality assurance of consumer goods produced in
of intelligent manufacturing and supply chain in overseas markets medical-grade environments. Core products such as dry and wet
while domestically focused on Green Operating Room solutions cotton towels maintained strong sales generating RMB810 million in
centering on clinical value as the anchor point accelerated the revenue in the first half of the year up 19.5% year-on-year. In the
penetration of disposable surgical kits. In healthcare & personal sanitary napkin segment Nice Princess earned recognition from both
care rapid growth in medical aesthetic products contributed consumers and retailers for its “Five Ultra” all-cotton comfort
additional incremental revenue. Driven by these initiatives the technology—Ultra-Clean Absorption Ultra-Breathable Ultra-Soft
operating room consumables advanced wound dressings and Ultra-Eco-Friendly Ultra-Convenient—and the clean production
healthcare & personal care categories achieved revenues of standards of Winner Medical. Amid rising consumer demand for
RMB740 million RMB480 million and RMB230 million safety at the end of last year the product’s long-standing quality
respectively in the first half of the year—year-on-year growth of advantage stood out driving a significant rise in industry rankings
193.5% (Excluding GRI operating room consumables sales in the during the first half. Revenue from sanitary napkins reached RMB530
first half of the year increased by 18% year-on-year) 25.7% and million up 67.6% year-on-year underscoring the growth potential of
26.9%—maintaining strong momentum. By the end of the reporting this key strategic category. In adult apparel the Company
period the medical consumables segment held a total of 1109 R&D strategically focused on intimate categories such as underwear and
patents and 701 medical product registrations including 28 Class III sleepwear deepening its expertise in all-cotton fabric technology
registrations and 340 overseas registrations. while enhancing comfort through improved fit and design. Revenue
in this segment reached RMB520 million a 19.4% increase year-on-
year. Purcotton continues to drive innovation through R&D
expanding its product portfolio and strengthening competitiveness.By the end of the reporting period the brand had accumulated a total
of 530 patents.23
Section III Management Discussion and Analysis
In channel development the first half of 2025 saw continued 2. Operational management
deepening of online channels with an emphasis on new products
and key hit items to build competitive advantages for strategic
offerings. Online sales reached RMB1.71 billion up 23.6% year-on- (1) Brand building
year with interest-based e-commerce platforms such as Douyin
achieving breakthrough growth nearly 100% year-on-year. As key Winner Medical focuses on Brand Advancement by fullyplatforms for brand promotion product experience and customer consolidating the synergistic ecosystem of “professional healthcare +service Purcotton’s physical stores maintained steady growth. By public wellness”. In the critical healthcare sector the Company
the end of the first half of 2025 the Company operated 484 stores— strengthens hospital-end brand building through several initiatives: *
380 directly owned and 104 franchised—with 16 new openings Launching the “Green Operating Room” integrated solution to help
during the period (8 direct and 8 franchised). Physical store revenue hospitals improve operational management reduce surgical
reached RMB720 million up 2.8% year-on-year. The supermarket infections enhance staff comfort and minimize environmental impact
channel also showed strong development contributing RMB240 from medical waste. * Engaging in international dialogues on wound
million in revenue a 63.2% increase year-on-year. By the end of the care and medical innovation by participating in major exhibitions
reporting period Purcotton’s total membership across all platforms including the 91st China International Medical Equipment Fair
reached nearly 67 million up 7.7% from the previous year (CMEF Spring). * Actively participating in workshops and
reflecting continued expansion in brand reach and consumer conferences on vascular disease wound treatment operating room
engagement. nursing management infection control and surgical innovations to
deepen hospital-level brand presence. In the consumer healthcare
(3) Profitability sector Winner Medical collaborated with authoritative media
CCTV.com to release documentaries such as Why Professional
During the reporting period the profitability of the Company’s two Medical-Grade Products Are Increasingly Favored Nurturing Health
main businesses showed overall stability and an upward trend. In the While Protecting the Environment: The Development Journey of
medical consumables segment for the past two years the Company Cotton-Lined Masks and Have You Washed Your Sunscreen Mask
actively restored profitability through a range of measures. In the These films highlighted cotton-lined masks and daily disposable
first half of 2025 the segment carried out comprehensive integration sunscreen masks closely aligning with consumer trends.and efficiency improvements across product structure iteration of
new technologies and products and improvement of organizational Purcotton continued to strengthen emotional connections and
operational efficiency and channel development driving the engagement with consumers reinforcing its brand values of Comfort
operating profit margin to 8.6% a 0.9-percentage-point increase Commitment Health Assurance Eco-Consciousness as well as its
year-on-year. In the consumer goods segment benefiting from lower warm and empowering image. In consumer communications the
cotton prices and optimized product structure Purcotton achieved a brand launched the 100 Homes of Cotton TVC to evoke feelings of
gross margin of 58.6% up 1.7 percentage points compared with the security and happiness. For Children’s Day it released Listen to the
same period last year. The brand continued advancing initiatives Kids 2.0 creatively answering adult questions through children’s
such as new product iterations product mix optimization discount perspectives expanding touchpoints and enhancing its child-
management cost reduction efficiency improvements and refined understanding brand image. The Comfort One Step Further TVC
operational management. As a result the operating profit margin for demonstrated the comfort standards of cotton underwear while
the consumer goods business reached 14.0% a 1.2-percentage-point Designer’s Notes shared the stories behind the products giving
increase from same period last year consumers an intuitive understanding of the brand’s dedication. In
product promotion Ding Yuxi starred in Purcotton Comfort with
(4) Future Development Outlook You highlighting the brand’s focus on comfort. The campaign was
integrated with Tmall Super Brand Day and Li Jiaqi’s exclusive
livestreams achieving unified branding and sales impact. The
Throughout its development Winner Group has successfully
Comfort Trilogy offline fan meetups with Ding Yuxi allowed young
navigated five economic cycles remaining true to its founding
consumers to experience the full comfort of 100% cotton. Guo
aspirations while continuously building preserving and advancing
Jingjing’s [A Home with Purcotton More at Ease] TVC emphasized
its legacy. The Company follows the core business principles of
the freshness brought by Cotton Tech and was paired with a factory“Quality over the Profit Brand over the Speed Social Value overtraceability campaign in collaboration with CCTV Finance. Zhaothe Corporate Value” guided by a development strategy focused on
Liying’s [more comfortable life with Purcotton at home] TVC and
“Product leadership Operational excellence Global vision”. Winner
brand livestream showcased Purcotton sleepwear effectively
Group is committed to pursuing dual-track advancement in medical
communicating both the product quality and the brand story.and consumer goods sectors; driving collaborative expansion across
domestic and global markets; enabling convergent growth of online
and offline channels; upholding altruism and long-termism —
committed to delivering safe premium cost-effective and
experience-driven products and services for global users24
Section III Management Discussion and Analysis
(2) Product R&D (3) Digital transformation
Driven by functionalization of pure cotton spunlace non-woven By 2025 Winner Group will continue to advance its digital and
materials advanced wound care technologies and cutting-edge intelligent transformation strategy customer-centered and guided bybiomaterials Winner Medical maintains a sharp focus on upgrading the principle of “business management process-oriented processcore material formulations and iterating product technologies. In management digitalized and digital management intelligent”
operating room consumables Winner Medical prioritizes cotton comprehensively empowering business development.over synthetic fibers optimizing the performance of high-use
clinical supplies such as surgical gowns. The Green Operating Room The Medical division has upgraded its CRM system streamlining the
concept integrates safety reliability and sustainability throughout end-to-end LTC process to enable fully closed-loop online
surgical procedures reinforcing the brand’s market positioning. management across five hospital sales categories. This improvement
Functional dressings focus on domestic sourcing of core raw enhances sales visibility process control and cross-department
materials. By overcoming technical barriers in adhesives and collaboration efficiency by 30% providing a solid data-driven
absorbent materials Winner Medical has built an industrial platform foundation for decision-making.for locally sourced materials ensuring supply chain security. Its
patent portfolio and product registrations further strengthen
technological and regulatory advantages. The bioactive dressing Purcotton focused on consumer needs upgraded its Marketing Cloud
segment has also reached mass production and expanded to version 4.0 creating a full-chain marketing closed loop. The
applications of collagen technology. Medical aesthetic products now system integrates data from over 50 million users products and
include in-house production of Class II medical device dressings scenarios establishing a 400+ user tag system and an omnichannel
using steam sterilization to guarantee sterility and ingredient touchpoint matrix. Its intelligent content platform links mainstream
efficacy while innovations in membrane fabrics enhance the user media channels and incorporates AI-assisted content generation. The
experience. In industry-academia collaboration Winner Medical Unified Commerce initiative optimizes business processes to support
partnered with academicians from the Chinese Academy of efficient decision-making while Unified Data launches a centralized
Engineering to apply lead-free radiation shielding technology across data platform that enables visualized and actionable operational
its product line achieving full control from material development analytics.through mass production.In manufacturing the self-developed WIN+ intelligent manufacturing
Purcotton consistently follows the development philosophy of platform alongside WMS and TMS systems integrates AI IoT and“Low-count yarn with high-grade cotton blending and high-count big data to build a flexible efficient green and secure smartyarn with premium cotton blending” cotton and custom-spun yarns. production and logistics system. This ensures precise production
Through continuous technological innovation the brand has decisions optimal resource allocation and continuous efficiency
advanced Cotton Tech enhancing cotton soft cotton breathable improvements strengthening competitiveness and promoting high-
cotton warm cotton cool cotton anti-uv cotton anti-bacterial quality manufacturing development.properties. Functional breakthroughs include odor elimination
quick-drying and fluorine-free waterproofing for cotton materials. The Group's functional sharing sector promotes the transformation of
Upgraded self-softening technology for spunlace nonwoven cotton financial functions launches the tax system and advances the
fabric improves comfort in disposable travel products directly construction of a digital sharing platform for finance and economics.addressing consumer pain points. Clinical studies on cotton and non- In May the Group rolled out the Feishu collaborative office platform
cotton wet wipes have been conducted in collaboration with top-tier covering all employees with a daily active usage rate exceeding 95%.hospitals. Focusing on core cotton gauze materials Purcotton has Efficiency across China’s nearly 500 stores improved by 50% while
developed elastic gauze organic cotton gauze and cooling quick- the development cycle for digital systems was shortened by 30%.dry gauze expanding its premium wrinkled gauze series and Over 100 "Efficiency Pioneers" led the organization-wide adoption of
establishing a distinctive cotton wrinkle aesthetic. The Wind-Soft AI establishing a “Four Online” framework to create intelligent
Cotton material has undergone continuous enhancement with the front-end application experiences.Wind-Soft Cotton 4.0 warmth series offering breathability
insulation far-infrared heating and anti-static properties to deliver
superior comfort for wearers. Purcotton is advancing lightweight
sports-oriented functional materials exploring cotton’s athletic
properties to deliver quick-drying fabrics that don’t stick to the skin
highly elastic materials without static and breathable fabrics that
prevent sweat retention. Its self-developed cotton core filling
balances fluffiness with washability achieving breakthroughs inoutdoor apparel insulation. Guided by the “materials leadershipseeds first” innovation philosophy Purcotton collaborates with
research institutions on Cotton 135 breeding conversions and
specialized cotton for spunlacing. Deep partnerships withuniversities have led to pioneering sleepwear “scenario-basedcomfort” evaluation systems shifting industry standards from
single-parameter assessments to scenario-driven evaluations.Thermal comfort research for cotton thermal underwear has
established a multidimensional evaluation model. Through these
advances in material science and scenario-driven applications
Purcotton achieves a dual-value upgrade of “health and comfort”
alongside “functional sustainability” offering consumers healthier
more comfortable and higher-quality product experiences.25
Section III Management Discussion and Analysis
(II) YoY changes in key financial data
Unit: RMB
Year-on-year
Current reporting period Same period last year increase/decr Reasons for changes
ease
Primarily driven by growth in both organic
Operating revenue 5296211956.92 4033505104.33 31.31%
and acquired business sales.Mainly due to higher revenue which led to
Operating cost 2736394780.72 2068470442.58 32.29%
corresponding increases in costs.Selling expenses 1254903652.81 1055741084.22 18.86% No significant change observed
Primarily attributable to additional expenses
Administrative expenses 436173126.72 309446026.40 40.95%
arising from the GRI acquisition.Mainly caused by: 1) a decline in interest
Finance expenses -11332380.95 -37442539.84 69.73% income during the period;
2) higher interest expenses related to GRI.
Primarily due to: 1) increased total annual
profit;
Income tax expenses 127441441.90 67151050.24 89.78%
2) higher corporate income tax rates resulting
from subsidiary relocations.Primarily driven by increased R&D
R&D expenses 194377566.90 143142952.33 35.79%
investment by the Company.Net cash ows from operating Mainly attributable to higher cash inflows
339925774.07193333516.7675.82%
activities from sales receipts.Net cash ows from investing Primarily due to a reduction in purchases of
524259605.55-423873353.55223.68%
activities financial products during the period.Mainly driven by increased cash outflows for
Net cash ows from nancing activities -741438610.09 -560896220.86 -32.19%
debt repayments during the period.Net increase in cash and cash Primarily resulting from higher net operating
129989002.56-783341536.49116.59%
equivalents cash flow during the period.Significant changes in the profit composition or profit source of the Company during the reporting period
□Applicable √N/A
There was no significant change occurred in the profit composition or profit source of the Company during the reporting period.26
Section III Management Discussion and Analysis
Products or services accounting for more than 10%
√Applicable □N/A
Unit: RMB
Change in Change in Change in
operating operating gross margin
revenue costs
compared to
Gross compared to compared to the same
Operating revenue Operating cost
margin the same the same period last
period last period last year
year year
By products or services
By sector
Medical consumables 2515255012.76 1574862261.71 37.39% 46.39% 48.07% -0.71%
Consumer goods 2745307551.87 1135736241.22 58.63% 20.29% 15.44% 1.74%
By product
Medical consumables – traditional
wound care and bandaging 568161295.98 387676930.53 31.77% -2.45% -3.73% 0.91%
Medical consumables – operating
742877069.01519370820.0830.09%193.52%225.65%-6.90%
room consumables
Consumer goods – dry and wet
812925165.93404412224.4850.25%19.46%18.03%0.60%
cotton tissues
Consumer goods – sanitary napkins 532686851.69 168858107.49 68.30% 67.64% 61.59% 1.19%
By region
Domestic 3724025574.19 1746782440.76 53.09% 19.03% 15.10% 1.60%
Overseas 1536536990.44 963816062.16 37.27% 76.27% 81.91% -1.94%27
Section III Management Discussion and Analysis
The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company
Self-Regulation Guidelines No. 3 – Industry Information Disclosure.Unit: RMB
Change in Change in
operating Change in gross
revenue operating costs margin
Gross
Operating revenue Operating cost compared to compared to the compared to
margin
the same same period last the same
period last year period last
year year
By sector
Consumer goods 2745307551.87 1135736241.22 58.63% 20.29% 15.44% 1.74%
By product
Consumer goods – dry and wet
812925165.93404412224.4850.25%19.46%18.03%0.60%
cotton tissues
Consumer goods – sanitary
532686851.69168858107.4968.30%67.64%61.59%1.19%
napkins
Consumer goods – other non-
199524730.93119242458.6640.24%2.23%1.93%0.17%
woven products
Consumer goods – baby and child
464885311.87182211475.7460.81%3.63%0.85%1.08%
apparel and products
Consumer goods – adult apparel 520819945.59 168886726.88 67.57% 19.41% 13.03% 1.83%
Consumer goods – other woven
214465545.8692125247.9757.04%5.11%2.76%0.98%
products
In cases where the statistical criteria for the Company’s main business data has been revised during the Reporting Period the Company’s main business
figures for the most recent one-year period restated in accordance with the criteria applied as of the end of the Reporting Period
□Applicable √N/A28
Section III Management Discussion and Analysis
Does the Company have physical store sales terminals
√Yes □No
Physical store distribution
Store type Number of stores Store area Number of new Number of stores Reason for closure Brands
(Square meter) stores opened closed as of the end involved
during the of the Reporting
Reporting Period Period
Directly operated 380 110018 8 13 Store closure due to contract Purcotton
expiration strategic
adjustment
Franchised 104 23092 8 6 Store closure due to contract Purcotton
expiration strategic
adjustment
Note: During the reporting period certain stores were converted between direct-operated and franchised formats. These conversions are not counted as new openings or closures and the
store opening figures have been adjusted accordingly.Total area of directly-operated stores and store efficiency
Total area Operating revenue from Operating revenue Average store Number
Area range January to June 2025 in the same period efficiency Year-
of stores (Square meter) (RMB0’000) last year on-year change Reason
Less than 300 square meters 188 40388.69 28615.90 30661.46 -6.67%
300-500 square meters 96 35252.50 20110.81 21148.95 -4.91%
500-800 square meters 20 12526.79 5535.07 5953.34 -7.03%
More than 800 square meters 6 5538.82 1687.68 1868.85 -9.69%
Total 310 93706.80 55949.46 59632.60 -6.18%
Explanation: The above data is for a year-over-year comparison of Purcotton stores that have been open for more than 12 months as of 30 June 2025.The top five stores in terms of operating revenue
Serial Store efficiency per
Store name Opening date Operating revenue (RMB)
number square meter
1 Ranking first 25 October 2017 6190318.82 15311.20
2 Ranking second 6 August 2012 5139438.73 19321.20
3 Ranking third 11 November 2017 5084259.10 4584.54
4 Ranking fourth 18 January 2018 5042726.76 12092.87
5 Ranking fifth 20 July 2016 5001700.66 12293.72
Total -- -- 26458444.07 10164.0129
Section III Management Discussion and Analysis
New stores of listed companies
√Yes □No
Area in Investment Property
Store Opening contract amount Product Business Business Number of Store name ownership
address date category format model stores
(Square meter) (RMB0’000) status
Directly
Purcotton directly Central Consumer Leased by
2025 305.00 144.11 Retail operated 1
operated store China goods Purcotton
store
Directly
Purcotton directly North Consumer Leased by
2025 830.29 488.51 Retail operated 3
operated store China goods Purcotton
store
Directly
Purcotton directly Consumer Leased by
West China 2025 255.00 124.17 Retail operated 1
operated store goods Purcotton
store
Directly
Purcotton directly South Consumer Leased by
2025 373.20 210.53 Retail operated 1
operated store China goods Purcotton
store
Directly
Purcotton directly Consumer Leased by
East China 2025 402.00 287.26 Retail operated 2
operated store goods Purcotton
store
Franchised
Purcotton franchised North Consumer Franchised
2025 160.00 23.13 Retail by 1
store China goods store
Purcotton
Franchised
Purcotton franchised South Consumer Franchised
2025 290.00 39.72 Retail by 1
store China goods store
Purcotton
Franchised
Purcotton franchised Consumer Franchised
West China 2025 331.31 76.22 Retail by 2
store goods store
Purcotton
Franchised
Purcotton franchised Central Consumer Franchised
2025 1130.76 132.25 Retail by 4
store China goods store
Purcotton
Total 4077.56 1525.90 16
Does the Company disclose information about its top five franchised stores
□Yes √No30
Section III Management Discussion and Analysis
IV. Other Information Required by the Industry Information Disclosure Guidelines for Textile
and Apparel-Related Sectors
1. Capacity
Self-owned capacity
Capacity utilization changed by more than 10% year on year
√Yes □No
January-June 2025 January-June 2024 Change in
capacity
Business Product Explanation of
Unit utilization as
category category Capacity Capacity change reason
Capacity Output Capacity Output percentage
utilization utilization
point
Higher order
Cotton 10000 volume; new
209751284761.25%18196908749.94%11.31%
tissues packages production line
added.Consumer
goods New production
line added
Sanitary 10000
72986 72695 99.60% 39836 29406 73.82% 25.78% increase in market
napkins pieces
demand leads to
increase in orders.Is there overseas capacity
□Yes √No
2. Sales model and channel
Sales channels and actual operation methods of the products
Companies involved in textiles and apparel are in the consumer goods sector. The main sales channels for the consumer goods sector include online sales
and physical stores.Unit: RMB
Change in
Change in Change in
gross margin
operating revenue operating costs
Marketing compared to
Operating revenue Operating cost Gross margin compared to the compared to the
channel the same
same period last same period last
period last
year (%) year (%)
year
Online sales 1707576957.84 760191251.98 55.48% 23.65 17.45 2.35%
Physical store 724218153.41 234557543.97 67.61% 2.75 -5.05 2.66%
Reason for change31
Section III Management Discussion and Analysis
3. Selling expenses and composition
Unit: RMB
Year-on-year
Amount for the current Amount for the last
Items increase/decr Reasons for changes
period period
ease
Employee benefits 351756153.04 308895689.06 13.88% No significant change observed
Primarily due to additional travel expenses
Travel expenses 15038995.11 11089494.35 35.61%
related to GRI.Office communication expenses 8503507.92 6712347.78 26.68% No significant change observed
Sales commissions and charges
144526632.13 150321611.77 -3.86% No significant change observed
by E-commerce platform
Depreciation and amortisation 121179518.36 117958551.43 2.73% No significant change observed
Mainly attributable to increased advertising
Advertising and promotion
501245493.81 339609578.47 47.59% and promotional investments in core product
expenses
categories.Lease and property management
68438212.02 76942306.30 -11.05% No significant change observed
fees
Others 44215140.42 44211505.06 0.01% No significant change observed
Total 1254903652.81 1055741084.22 18.86%
4. Franchise and distribution
Franchisees and distributors achieved a sales revenue as a percentage over 30%
□Yes √No
Top five franchisees
Serial
Franchisee name Date of start for cooperation Is it a related party Total sales amount (RMB) Franchisee’s level
number
1 Ranking first 9 November 2020 No 8362814.98 the first level
2 Ranking second 28 December 2022 No 7347323.01 the first level
3 Ranking third 26 June 2022 No 6622418.92 the first level
4 Ranking fourth 01 June 2021 No 5103901.09 the first level
5 Ranking fifth 31 March 2023 No 4972464.39 the first level
Total -- -- -- 32408922.39 --
Top five distributors
Total sales amount
Serial number Franchisee name Date of start for cooperation Is it a related party
(RMB)32
Section III Management Discussion and Analysis
5. Online sales
Online sales achieved a revenue as a percentage over 30%
√Yes □No
The Company’s primary operation model involves setting up online stores on third-party e-commerce platforms such as Tmall JD.com and Douyin to
sell products directly to end consumers. Under the direct sales model of e-commerce the goods are delivered and control is transferred to the consumer.The revenue is recognized when the consumer confirms receipt of the goods.Were self-owned sales platforms built
√Yes □No
Date of start for operation 06 January 2014
Number of registered users 16411645
Average number of monthly active users 1591899
Was there cooperation with third-party sales platforms
√Yes □No
Unit: RMB
Platform name Transaction amount during the Reporting Period Return rate
Consumer goods sold at Taobao/Tmall 823969315.12 3.08%
Opening or closing of online sales channels by the Company
□Applicable √N/A
Explain the impact on the Company’s current and future development
6. Outsourced operation model
Does it involve an outsourced operation model
□Yes √No33
Section III Management Discussion and Analysis
7. Inventory
Inventory
Change in inventory balance
Inventory turnover
Main products Inventory amount (RMB) Inventory age compared to the end of the previous Reason
days
year
Raw materials and materials
50343534690944720
consigned for processing
Work in process 202764222 -33409746
Goods on hand 1183541549 -60698281
Goods in transit 42525097 -5718921
Low-value consumables 14140341 -2525826
Total 142 1946406555 -11408053
Provision for inventory decline
Unit: RMB
Decrease in current
Increase in current period
Closing balance of the period
Category Closing balance
previous year
Provision Reversal or write-off
Raw materials and materials
9769459.0817831051.863649437.9523951072.99
consigned for processing
Work in process 29252698.59 5020955.94 21278715.87 12994938.66
Goods on hand 167669713.69 77259423.04 65207090.95 179722045.77
Goods in transit 1415065.71 547360.00 867705.71
Low-value consumables 2290807.36 353081.07 864755.88 1779132.55
Total 208982678.72 101879577.61 91547360.65 219314895.68
Inventory information of terminal channels such as franchisees or distributors
Purcotton has 104 franchised stores in operation. The business model for the franchised stores is that the franchisees are responsible for the construction
and daily operation of the stores while Purcotton provides goods training and supply chain support. Revenues generated from franchised stores sales are
shared between Purcotton and the franchisees. Purcotton retains ownership of inventory held in franchised stores. As of 30 June 2025 the inventory
balance was RMB42.87 million averaging RMB410000 per store.34
Section III Management Discussion and Analysis
8. Brand building
Does the Company engage in the production and sale of branded garments apparel and home textile products
√Yes □No
Proprietary brand
Target
Brand Trademark Main Main sales
Characteristics customer Price range of main products City tier
name name product type area
group
Made of 100% high-quality
Second-tier
natural cotton free of
Cotton All age Nationwid third-tier and
Purcotton Purcotton fluorescent brighteners gentle RMB5-30/pack (100 pieces)
tissues groups e above cities
and non-irritating meeting
nationwide
consumers’ daily needs.Second-tier
Pure cotton surface layer Ageappropri
Nice Sanitary Nationwid third-tier and
Purcotton (surface layer partition edge ate female RMB1.5-4.99/pad
Princess napkins e above cities
wing surface layer) population
nationwide
Pure cotton surface layer
unique in the market care Second-tier
from natural cotton; with ultra- Caregivers Nationwid third-tier and
Purcotton Nice Baby Diapers RMB2.45-5.45/pad
thin 2mm super-absorbent of infants e above cities
core that holds up to 28 times nationwide
its weight in liquid
Second-tier
Made from pure cotton soft
All age Nationwid third-tier and
Purcotton Purcotton Wet wipe but not greasy gentle and RMB20-40/pack
groups e above cities
harmless to skin
nationwide
Made from pure cotton no Expecting
Baby and Second-tier
fluorescence no formaldehyde mothers
child Nationwid third-tier and
Purcotton Purcotton added the unique gauze fabric newborns RMB100-500/piece
products/ap e above cities
offering more comfortable infants and
parel nationwide
care toddlers
Adult
Outerwear: RMB150-800/piece;
apparel:
Made from pure premium
ageappropria Sleepwear: RMB200-800/piece;
cotton no fluorescence no Second-tier
Adult te adult men Thermal underwear: RMB200-
formaldehyde added soft to Nationwid third-tier and
Purcotton Purcotton apparel/inti and women; 600/piece;
the touch the unique gauze e above cities
mate wear Intimate
fabric offering more Underpants: RMB58-108/piece nationwide
wear: all age
comfortable care (pack);
groups of
Socks: RMB20-40/pair
customers
Children’s bedding: RMB268-
Made from pure premium Expecting 1698/set;
cotton no fluorescence no mothers Toddler’s bedding: RMB198- Second-tier Bedding
formaldehyde added soft to newborns
Purcotton Purcotton bath 1098/set;
Nationwid third-tier and
the touch the unique gauze infants e above cities
products
fabric offering more toddlers and Adult’s bedding: RMB268- nationwide
comfortable care adults 3198/set;
Bath products: RMB38-398/piece35
Section III Management Discussion and Analysis
Partner brands
Target Price range Brand and Cooperati
Tradema Main Charact Main sales Partner Cooperati
Brand name customer of main City tier trademark on
rk name product type eristics area name on period
group products ownership method
Authorized brand
Target Price range Is it an
Trademark Main Characte Main sales Authorizin Authorizatio
Brand name customer of main City tier exclusive
name product type ristics area g party n period
group products authorization
Marketing and operations of each brand during the Reporting Period
For detailed information please refer to “III. Analysis of Main Business” in Section III Management Discussion and Analysis.Disputes related to trademark ownership
□Applicable √N/A
9. Others
Does the Company engage in apparel design-related business
√Yes □No
Number of in-house fashion designers 29 Number of contracted fashion designers 0
Operation of established designer platform PLM system 3D design platform and digital color tools
Does the Company hold order meetings
□Yes √No36
Section III Management Discussion and Analysis
V. Non-Core Business Activities
√Applicable □N/A
Unit: RMB
Percentage of total
Amount Reason Sustainability
prot
Primarily due to matured returns on wealth
Associate income is
Investment income 10250616.45 1.59% management products and recognized gains
sustainable; others are not
from associates
Gains and losses from Primarily due to changes in the fair value of
8043719.46 1.25% No
changes in fair value wealth management products
Primarily due to provision for inventory write-
Asset impairment -32261264.96 -5.00% down goodwill impairment and fixed asset No
impairment
Primarily due to gains from the disposal of non-
Non-operating revenue 2981866.13 0.46% No
current assets and other non-operating revenue
Primarily due to losses from the disposal of
Non-operating expense 16418323.58 2.54% No
non-current assets
Primarily due to expected credit loss provisions
Credit impairment loss -11497804.05 -1.78% No
for accounts receivable and other receivables
Gains on disposal of
1518248.05 0.24% Primarily due to disposal of non-current assets No
assets
Tax relief and reductions
Primarily due to receipt of government grants and cotton transport
Other revenue 44523302.06 6.90%
related to business operations subsidies are sustainable;
others are not37
Section III Management Discussion and Analysis
VI. Analysis of Assets and Liabilities
1. Signicant changes in asset composition
Unit: RMB
End of the reporting period End of the previous year
Change in Explanation of signicant
Percentage of Percentage of
Amount Amount percentage changes
total assets total assets
No significant change
Currency fund 1532405558.47 8.50% 1412088898.63 7.68% 0.82%
observed
Accounts No significant change
1204624419.816.69%980617641.385.33%1.36%
receivable observed
No significant change
Inventories 1946406554.83 10.80% 1957814608.25 10.65% 0.15%
observed
Investment No significant change
1910690.440.01%2360346.250.01%0.00%
properties observed
Long-term equity No significant change
426186435.732.37%445355778.002.42%-0.05%
investments observed
No significant change
Fixed assets 3945978042.78 21.90% 3354304108.81 18.24% 3.66%
observed
Primarily due to the
Construction in completion and transfer of
599316255.963.33%1074955450.405.84%-2.51%
progress construction-in-progress to
fixed assets during the period.Right-of-use No significant change
588511186.313.27%595222623.663.24%0.03%
assets observed
Short-term No significant change
1800844655.009.99%1969044164.6510.71%-0.72%
borrowings observed
Contract No significant change
168112166.850.93%182755504.600.99%-0.06%
liabilities observed
Long-term No significant change
50000000.000.28%53000000.000.29%-0.01%
borrowings observed
No significant change
Lease liabilities 412913690.20 2.29% 440876652.33 2.40% -0.11%
observed
Primarily due to the decrease
in payments for goods using
Notes receivable 23468822.98 0.13% 34319961.81 0.19% -0.06%
bank acceptance bills during
the current period
Primarily due to the decrease
Receivables in payments for goods using
44592896.780.25%68349926.240.37%-0.12%
financing bank acceptance bills during
the current period
Primarily due to increased
Prepayments 152802786.22 0.85% 107051901.68 0.58% 0.27% advance payments for cotton
and other goods.Non-current Primarily due to the
liabilities due 206174504.07 1.14% 396768243.67 2.16% -1.02% repayment of borrowings
within one year during the period.Primarily due to the
Long-term
26483360.45 0.15% 48544431.64 0.26% -0.11% repayment of long-term
payables
payables in the current period.
2. Major Overseas Assets
□Applicable √N/A38
Section III Management Discussion and Analysis
3. Assets and liabilities measured at fair value
√Applicable □N/A
Unit: RMB
Fair value Impairme
Cumulative
changes nt
fair value
recognized in provision Purchases during Sales during the
Items Opening balance changes Other changes Closing balance
profit or loss for for the the current period current period
recognized in
the current current
equity
period period
Financial assets
1. Trading financial assets
(excluding derivative 2921341484.39 8043719.46 456139517.21 1261000000.00 -200.35 2124524520.71
financial assets)
2. Other non-current
107906716.86000-487573.74107419143.12
financial assets
Subtotal of financial assets 3029248201.25 8043719.46 456139517.21 1261000000.00 -487774.09 2231943663.83
Total of the above 3029248201.25 8043719.46 456139517.21 1261000000.00 -487774.09 2231943663.83
Financial liabilities 0.00 0.00
Other changes
Others primarily due to the exchange rate fluctuations
Has there been any significant change in the measurement attributes of the Company’s major assets during the Reporting Period
□Yes √No
4. Restrictions on asset rights as of the end of the Reporting Period
For details please refer to Section VIII Financial Report – VII. Notes to Items in the Consolidated Financial Statements – 31. Assets with restricted
ownership or use rights.VII. Investment Analysis
1. Overall situation
√Applicable □N/A
Investment amount during the Reporting Period
Investment amount for the same period last year (RMB) Change rate
(RMB)
456139517.211213190997.98-62.40%
Note: Primarily due to a decrease in purchases of wealth management products during the period.
2. Signicant equity investments acquired during the Reporting Period
□Applicable √N/A39
Section III Management Discussion and Analysis
3. Signicant non-equity investments in progress during the Reporting Period
□Applicable √N/A
4. Financial Assets Measured at Fair Value
√Applicable □N/A
Unit: RMB
Fair value
changes Cumulative fair
Accumulated
Asset Initial investment recognized in value changes Purchases during Sales during the Source of
investment Other changes Closing balance
classes cost profit or loss for recognized in the current period current period funds
income
the current equity
period
Self-
Others 1465625979.18 -1859979.18 356139517.21 911000000.00 13484170.32 -487774.09 932873828.20 owned
funds
Self-
Trust
1520000000.00 9903698.64 100000000.00 350000000.00 9605469.61 1299069835.63 owned
products
funds
Total 2985625979.18 8043719.46 0.00 456139517.21 1261000000.00 23089639.93 -487774.09 2231943663.83 --
Note 1: For other asset categories the gains and losses from changes in fair value for the current period are negative mainly because the income from
wealth management 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. Use of raised funds
□Applicable √N/A
The Company does not use any raised funds during the reporting period.
6. Entrusted financial management derivatives investment and entrusted loans
(1) Information of entrusted financial management
√Applicable □N/A
Overview of entrusted financial management during the reporting period
Unit: ’0000 yuan
The amount of
Amount incurred in
Source of funds for entrusted Outstanding Overdue amount not impairment for
Specific type entrusted financial
financial management balance recovered overdue financial
management
management
Wealth management
products issued by Self-owned funds 91100 80867.1 0 0
banks
Trust financial
Self-owned funds 127000 127000 0 0
products
Total 218100 207867.1 0 0
Note: The amount of entrusted wealth management for trust products 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 √N/A
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□Applicable √N/A40
Section III Management Discussion and Analysis
(2) Derivatives investment
□Applicable √N/A
No derivative investment in the Company during the reporting period
(3) Information of entrusted loans
□Applicable √N/A
The Company had no entrusted loan during the reporting period.VIII. Disposal of Major Assets and Equity
1. Disposal of major assets
□Applicable √N/A
The Company had no disposal of major assets during the Reporting Period.
2. Disposal of major equity
□Applicable √N/A
IX. Analysis of Principal Subsidiaries and Affiliates
√Applicable □N/A
Information on major subsidiaries and affiliates contributing over 10% to the Company’s net profit
Unit: RMB
Company Company
Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
name type
Primarily responsible for
Winner pure cotton jumbo rolls
Medical
Subsidiary cotton tissues and other 259459200.00 1256154171.79 1057790587.79 633973213.33 83495634.20 68915433.02
(Huanggan products
g) Co. Ltd.Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable √N/A
Explanation of principal subsidiaries and affiliates41
Section III Management Discussion and Analysis
X. Structured Entities Controlled by the Company
□Applicable √N/A
XI. Risks Faced by the Company and Countermeasures
1. Risk of changes in industry policies and standards
The medical device industry due to its direct connection to human health and safety is subject to stringent government oversight. In recent years with
the continuous deepening of reforms in the pharmaceutical and healthcare systems relevant government departments have introduced a series of
regulations and policies in areas such as industry standards bidding rules pricing mechanisms and distribution systems. The implementation of these
policies has had a broad and profound impact on the development of the medical device industry. Should the Company fail to adapt swiftly to these
policy changes it could face operational challenges. As a result the Company remains vigilant of regulatory developments and actively adjusts its
strategy to ensure both compliance and market competitiveness.
2. Risk of raw material price fluctuations and countermeasures
The Company’s core raw materials consist primarily of cotton and cotton-derived products including cotton yarn and medical greige fabrics. Cotton
prices are subject to a wide array of influencing factors such as acreage under cultivation climate conditions inventory cycles government pricing
policies market demand futures market dynamics international trade regulations and currency exchange rate fluctuations. Should raw material costs
continue to rise while product pricing fails to adjust in parallel the resulting inability to pass on costs may exert pressure on profit margins and adversely
affect the Company’s profitability. To mitigate this risk the Company has implemented a proactive cotton procurement strategy. This includes increasing
strategic inventory when prices are low and deploying a price linkage mechanism during high-price periods to adjust retail pricing and optimize discount
policies. In parallel the Company opportunistically invests in cotton derivatives as a hedging tool to manage price volatility thereby reducing its
potential impact on financial performance.
3. Risk from shifts in the international trade environment
Currently the global trade landscape remains volatile and complex shaped by geopolitical tensions rising tariff barriers policy adjustments affecting
imports and exports and fluctuations in international logistics costs. These dynamics present growing challenges and operational costs for the Company’s
overseas business particularly with regard to the U.S. market. For the medical consumables segment divergent regulatory standards across jurisdictions
can result in burdensome product certification and market entry requirements increasing both operational complexity and time-to-market. Failure to
adapt swiftly to such changes may lead to order reductions higher costs and delayed deliveries. As of the end of the Reporting Period the Company’s
consumer goods segment does not involve sales to the United States. Its medical sector exports are concentrated in Europe and Japan with only a limited
share attributable to the U.S. market. In addition the Company’s subsidiary GRI maintains production capacity in the U.S. which helps partially offset
related risks. Going forward the Company will closely monitor global trade developments adjust its market deployment strategies with agility and
enhance supply chain resilience to minimize the potential operational impact of external uncertainties.
4. Risk of exchange rate uctuations and countermeasures
The Company’s cross-border transactions are settled primarily in U.S. dollars and other major foreign currencies notably involving the export of medical
consumables and the international procurement of cotton. Exchange rate fluctuations have a dual impact – affecting both the competitiveness of product
pricing in overseas markets and the cost structure of imported raw materials as well as creating potential foreign exchange gains or losses. A substantial
appreciation of the Renminbi could erode the Company’s pricing power abroad and result in negative currency translation effects adversely impacting
financial performance. To counter this the Company has established a multi-tiered hedging framework. Key measures include: incorporating exchange
rate adjustment clauses in contracts with long-term clients; shortening quotation cycles for new orders to improve responsiveness to currency fluctuations;
executing forward foreign exchange contracts for hedging purposes thereby locking in future settlement rates and enhancing its foreign exchange
monitoring and analytical capabilities to track currency market trends in real time and mitigate the impact of exchange rate volatility on profitability.42
Section III Management Discussion and Analysis
5. Competition risks in the consumer goods business
Each segment of the Company’s consumer goods business operates in highly competitive markets facing rivals from both established domestic and
international brands as well as new entrants. Competitors may engage in price wars increase marketing spend launch innovative products or expand
distribution channels to capture market share. Such actions could put pressure on the Company’s market share slow revenue growth and compress profit
margins. Rapid shifts in consumer preferences also pose risks if emerging trends are not promptly identified or if product development and innovation
fail to keep pace. To mitigate these risks the Company maintains a stable management team and efficient decision-making processes. It regularly
develops rigorous business plans closely monitors market trends drives continuous R&D innovation and consistently upholds its principles of product
leadership and operational excellence to meet consumer needs and strengthen brand recognition.
6. Risks of cross-border acquisitions
During the Reporting Period the Company successfully completed the acquisition projects of overseas equity accelerating Winner Group’s global
expansion. However this also introduces various risks including: fluctuations in international political and economic conditions; changes in the target
country’s policies and regulations (such as legal systems tariff policies labor policies and regulatory frameworks); exchange rate volatility; differences
in cultures and business practices; and challenges related to the integration of management systems personnel coordination and technology transfer.These risks may hinder the integration process result in lower-than-expected business synergies and negatively impact the Company’s financial
condition and operating results. To mitigate these risks the Company will enhance communication and exchange with the acquired companies deepen
understanding of local culture market environment and regulatory systems rigorously implement integration plans continuously improve its risk
assessment mechanisms and strengthen compliance management and training to reduce the risks of cross-border acquisitions.
7. Risk of goodwill impairment and countermeasures
To build a one-stop solution for medical consumables Winner Medical has in recent years executed a series of strategic acquisitions to extend and
strengthen its industrial value chain. As a result a material amount of goodwill has accumulated. In accordance with accounting standards goodwill must
undergo annual impairment testing at the end of each fiscal year. If the operational performance of an acquired entity fails to meet expectations a
goodwill impairment may be triggered – resulting in a direct hit to current-period earnings and potentially impacting shareholder equity and market
valuation. To address this risk the Company has further enhanced its postacquisition management system. Through strategic business integration
resource consolidation and targeted management incentives the Company aims to improve the operational performance of acquired entities.Additionally the Company exercises prudence in evaluating the valuation rationale of new acquisition targets striving to minimize the risk of goodwill
impairment and its downstream effects on financial statements.
8. Risk of inability to recover the remaining compensation from the Winner investment project in
Heyuan and countermeasures
Due to planning adjustments to the Heyuan Station forecourt and the High-Speed Rail New Town associated with the Ganzhou-Shenzhen high-speed
railway the Agreement on the Investment and Construction of Medical Kit and Cotton-Based Daily Necessities Production Project signed between the
Company and the People’s Government of Zijin County Heyuan City in 2016 could not be executed. In November 2019 the Ganjiang New Area
International Arbitration Court ruled to terminate the agreement ordering the Zijin County Government to compensate the Company in the amount of
RMB550 million payable in two installments by 31 December 2019 and 29 February 2020 respectively. As of the end of the Reporting Period the
Company had received a refund of RMB3 million for the land transfer deposit and RMB330 million in compensation. However the remaining balance of
approximately RMB217 million is at risk of nonrecovery. Out of prudence the Company has made a bad debt provision of RMB110 million for the
outstanding amount. The Company is actively maintaining communication with the local government and continues to pursue the recovery of the
remaining compensation.43
Section III Management Discussion and Analysis
XII. Record of Investor Relations Activities Including Research Visits Communications and
Interviews during the Reporting Period
√Applicable □N/A
Main topics discussed
Reception Reception Type of Index of basic
Reception date Visitor and materials
location method visitor research visit
provided
Details are
Company 235 institutional investors available on the
Business overview
Headquarters Phone including ChinaAMC Boshi interactive
17 January 2025 Institutions and operating
Meeting communication Fund BOCOM Schroders Fund platform of
performance
Room and Minsheng Royal Fund Shenzhen Stock
Exchange
Details are
Company available on the
18 institutional investors Business overview
Headquarters interactive
19 February 2025 Field visit Institutions including Caitong Fund and and operating
Meeting platform of
Oriental Alpha Fund performance
Room Shenzhen Stock
Exchange
Details are
143 institutional investors
available on the
Webcasting including Fullgoal Fund Business performance
interactive
07 May 2025 studio at Others Institutions Dongfanghong Asset for FY2024 and Q1
platform of
rs.p5w.net Management GF Fund and 2025
Shenzhen Stock
Springs Capital
Exchange
Details are
Company available on the
23 institutional investors Business overview
Headquarters interactive
28 May 2025 Field visit Institutions including China Merchants Fund and operating
Meeting platform of
and Guotai Haitong performance
Room Shenzhen Stock
Exchange
Details are
194 institutional investors
available on the
including Harvest Fund China Business overview
Phone interactive
24 June 2025 Online Institutions Merchants Fund Huatai- and operating
communication platform of
PineBridge Caitong Securities performance
Shenzhen Stock
Asset Management
Exchange
XIII. Establishment and Implementation of Market Capitalization Management Systems and
Valuation Enhancement Plans
Has the Company established a market capitalization management system
√Yes □No
Has the Company disclosed a valuation enhancement plan
□Yes √No
For the further standardization of its market capitalization management practices the Company has formulated the Market Capitalization Management
System of Winner Medical Co. Ltd. to promote the enhancement of investment value increase investor returns and protect the legitimate rights and
interests of the Company investors and other stakeholders. This system was developed in accordance with the relevant provisions of the Company Law
Securities Law Opinions of the State Council on Strengthening Supervision to Prevent Risks and Promote High-Quality Development of the Capital
Market the Measures for the Administration of Information Disclosure by Listed Companies and Guideline on the Supervision of Listed Companies No.
10 – Market Capitalization Management and was reviewed and approved by the Board of Directors.44
Section III Management Discussion and Analysis
XIV. Implementation of the “Dual Improvement of Quality and Return” Action Plan
Has the Company disclosed the “Dual Improvement of Quality and Return” action plan announcement
√Yes □No
Guided by the principles of “activating the capital market and boosting investor confidence” and “significantly improving the quality and investmentvalue of listed companies through more effective measures to stabilize the market and confidence” the plan aligns with the Company’s development
strategy operational realities and financial position.As a health enterprise integrating medical and consumer sectors the Company upholds the vision of “Caring Health Cherishing Life and Protecting theEnvironment for A Better World”. It operates two major brands Winner Medical and Purcotton offering products spanning wound care infection
protection operating room consumables personal care home care maternal and infant care home textiles and apparel. Adhering to the core business
principles of “Quality over the Profit Brand over the Speed Social Value over the Corporate Value” and guided by the development strategy of
“Product Leadership Operational Excellence Global Vision” the Company dedicates itself to providing safe high-quality cost-effective products and
services with a strong user experience for customers worldwide.The Company continues to optimize its corporate governance structure strengthen internal controls enhance risk management and lay a solid foundation
for high-quality sustainable development. The Company has been honored with the Best Board Practices award by the China Listed Companies
Association for three consecutive years. It has voluntarily published corporate social responsibility (CSR) and ESG reports for five consecutive years and
has been recognized as an ESG Best Practice Case of Listed Companies by the same association for four consecutive years. As a participant in the United
Nations Global Compact the Company actively implements sustainable development strategies and was awarded the UN Global Compact China Best
Practice Case in 2021.The Company strictly adheres to information disclosure requirements under securities laws and regulations proactively develops investor engagement
platforms and continuously enhances the breadth depth and timeliness of its disclosures. It has been selected for inclusion in the Shenzhen Stock
Exchange Growth Enterprise Market Annual Report Outstanding Case Compilation for two consecutive years and has maintained an “A” rating in annual
information disclosure assessments since listing.Consistently prioritizing investors the Company focuses on improving core business efficiency while rigorously implementing profit distribution policies.Since its 2020 listing it has issued six cash dividends totaling RMB2.613 billion with the 2025 interim dividend pending (dividend amount: RMB262
million) and conducted two share repurchases totaling RMB695 million. The combined total of dividends and share repurchases is RMB3.57 billion
representing 100.33% of net proceeds from the initial public offering.45
Section IV Corporate Governance Environmental and Social
Responsibilities
Section IV
Corporate
Governance
Environmental
and Social
Responsibilities46
Section IV Corporate Governance Environmental and Social
Responsibilities
I. Change of Directors Supervisors and Senior Management
□Applicable √N/A
There were no changes in the directors supervisors and senior management of the Company during the reporting period which can be found in the
Annual Report 2024.II. Profit Distribution and Share Capital Increase from Capital Surplus in the Reporting Period
√Applicable □N/A
Number of bonus share to be distributed per 10 shares held (shares) 0
Amount of dividend to be distributed per 10 shares held (RMB) (tax inclusive) 4.50
Base of share capital for the distribution plan (shares) 582329808
Amount of cash dividend (RMB) (tax inclusive) 262048413.60
Amount of cash dividend in other forms (e.g. share repurchase) (RMB) 0.00
Total amount of cash dividend (including in other forms) (RMB) 262048413.60
Profit available for distribution (RMB) 4839485604.01
Percentage of total amount of cash dividend (including in other forms) in the total amount of
100.00%
profit distributed
Current Cash Dividend
Others
Detailed explanation on prot distribution plan and the proposal on share capital increase from capital surplus
The Company’s profit distribution plan for 2025 is as follows: based on the current total share capital of 582329808 shares a cash dividend of RMB4.50
(tax inclusive) will be distributed for every 10 shares held by shareholders totaling RMB262048413.60 (tax inclusive) to be distributed. No share
capital increase from capital surplus and no distribution of bonus shares. The proportion of cash dividends for the first half of 2025 to the net profit
attributable to shareholders of the listed company is 53.26%.During the period from the disclosure to the implementation of the profit distribution plan if the total amount of shares enjoying the right to profit
distribution changes the company will make corresponding adjustments in accordance with the principle that the cash dividend ratio remains unchanged
while the total amount of cash dividends changes.The company's 2024 annual shareholders' meeting has authorized the board of directors to under the premise of meeting the profit distribution
requirements comprehensively consider the company's operating conditions reasonable returns to shareholders etc. to formulate the specific plan for
the interim profit distribution in 2025 and handle the related matters of the interim profit distribution.III. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership Plan
or Other Employee Incentive Measures
√Applicable □N/A
1. Equity incentive
On 25 October 2024 the Company held the Fourth Meeting of the Fourth Board of Directors and the Fourth Meeting of the Fourth Board of Supervisors.On 13 November 2024 it convened the 2024 Fourth Extraordinary General Meeting of Shareholders during which the Proposal on the Company's 2024
Restricted Stock Incentive Plan (Draft) and Its Summary and related matters were reviewed and approved.On 15 November 2024 the Company held the Fifth Meeting of the Fourth Board of Directors and the Fifth Meeting of the Fourth Board of Supervisors
approving the Proposal on the Initial Grant of Restricted Stock to Incentive Targets under the 2024 Restricted Stock Incentive Plan. The grant date was
set as 15 November 2024 with RMB6.9763 million restricted shares awarded to 308 eligible incentive recipients.47
Section IV Corporate Governance Environmental and Social
Responsibilities
2. Implementation of employee stock ownership plan
√Applicable □N/A
All effective employee stock ownership plans implemented during the Reporting Period
Percentage of Total
Number of Total Shares Sources of Funds for Implementing the
Scope of Employee Change Share Capital of
Employee Held (shares) Plan
Listed Company
Core employees at director level Incentive funds raised by employees and
12 353500 None 0.06%
(inclusive) or above provided by the Company
Shares held by Directors Supervisors and senior management under the employee stock ownership plan during the Reporting Period
Number of shares held at the Number of shares held at the
Percentage of Total Share Capital
Name Position beginning of the Reporting end of the Reporting Period
of Listed Company
Period (shares) (shares)
Liao Meizhen Director
Liao Guanlai Deputy General Manager 91000 91000 0.02%
Zhao Xia Supervisor
Changes in asset management institutions during the Reporting Period
□Applicable √N/A
Changes in equity caused by holders’ disposal of shares during the Reporting Period
□Applicable √N/A
Exercise of shareholders’ rights during the Reporting Period N/A
Other pertinent circumstances and explanations regarding employee stock ownership plan during the Reporting Period
√Applicable □N/A
During the Reporting Period one participant in the employee stock ownership plan left the Company. In accordance with the First Phase Employee Stock
Ownership Plan Management Measures the Management Committee calculated the vested portion based on the length of employment. The remaining
unvested stock rights were repurchased by the Management Committee at the original investment cost. After the lock-up period the repurchased stock
rights will be sold at an appropriate time with the proceeds accruing to the Company
Changes in the membership of the Employee Stock Ownership Plan Management Committee
□Applicable √N/A
The financial impact of employee stock ownership plan on the listed company during the Reporting Period and the associated accounting treatment
√Applicable □N/A48
Section IV Corporate Governance Environmental and Social
Responsibilities
According to the provisions of Accounting Standards for Business Enterprises No. 11 – Share-based Payment on each balance sheet date during the
vesting period the relevant costs or expenses and capital reserves are determined based on the best estimate of the number of exercisable equity
instruments and the fair value of the equity instrument on the grant date reflecting the services obtained in the current period.Termination of employee stock ownership plan during the Reporting Period
□Applicable √N/A
Other descriptions:
None
3. Other employee incentive measures
□Applicable √N/A
IV. Environmental Information Disclosure
Whether the listed Company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental information
√Yes □No
Number of enterprises included in the list legally required to disclose environmental information (units) 7
Serial
Company Name Query Index for Environmental Information Disclosure Report
number
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
1 Winner Medical (Tianmen) Co. Ltd. enterpriseInfoXTXH=61ba529c-f6e8-43ee-aceb-5193454fe06d
&XH=1677750544908009244672&year=2024
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
2 Winner Medical (Huanggang) Co. Ltd. enterpriseInfoXTXH=0f048ac8-07eb-45b7-9386-931ca39ed0ec
&XH=1677749938692009244672&year=2024
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
3 Winner Medical (Jingmen) Co. Ltd. enterpriseInfoXTXH=e8f4bc9a-dceb-4fc6-975f-004be2bba9f5&
XH=1677750239445009244672&year=2024
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
4 Winner Medical (Wuhan) Co. Ltd. enterpriseInfoXTXH=7bc72cf9-2929-4097-947c-000e9dd6c70a
&XH=1677751227336009244672&year=2024
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
5 Winner Medical (Jiayu) Co. Ltd. enterpriseInfoXTXH=b92f1bb4-f2a4-4104-b178-77a43ade93ef
&XH=1677751203763009244672&year=2024
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
6 Winner Medical (Chongyang) Co. Ltd. enterpriseInfoXTXH=10c54f4c-b315-40ed-b692-361aeea02ce3
&XH=1677751425806009244672&year=2024
Winner Medical (Hunan) Co. Ltd. https://222.244.103.251:8181/hnyfpl/frontal/index.html#/home/
7 (formerly: Hunan Pingan Medical Device Technology enterpriseInfoXTXH=2f6c6022-719c-4599-8658-d64971b612ee&
Co. Ltd.) XH=1682729533355038391808&year=2024&reportType=149
Section IV Corporate Governance Environmental and Social
Responsibilities
The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company
Self-Regulation Guidelines No. 3 – Industry Information Disclosure.Information on environmental accidents of listed companies
None
V. Performance of Social Responsibility
Guided by the vision of "Caring Health Cherishing Life and Protecting the Environment for A Better World" the Company consistently upholds its core
business principles of "Quality over the Profit Brand over the Speed Social Value over the Corporate Value" across all aspects of its operations. During
the reporting period the Company delivered support and care through diverse initiatives demonstrating corporate social responsibility through concrete
actions.(I) Rapid Disaster Relief Protecting Hope in Times of Crisis
Following the 6.8-magnitude earthquake in Dingri County Shigatse City Tibet the Company responded immediately partnering with the China
Women’s Development Foundation and the Red Cross Society of Tibet Autonomous Region to donate supplies. Winner Medical contributed in medical
supplies including protective masks heating products disinfectants and wound care products providing crucial support for medical relief efforts in the
disaster area. Purcotton and Nice Princess provided winter supplies and daily necessities including adult and children’s clothing thermal underwear sets
cotton quilts blankets and Nice Princess sleep pants helping to safeguard the livelihoods of affected residents.(II) Actively Promoting Women’s Care Initiatives to Spread Mutual Warmth
Purcotton’s sanitary napkin brand Nice Princess launched the “Nice For Her” public welfare campaign in Lantian Shaanxi. During the event Purcotton
donated supplies to the China Women’s Development Foundation and distributed “menstrual care packages” containing sanitary napkins and educational
materials to female students helping them develop scientific awareness of menstruation and navigate adolescence with confidence. The brand is also
expanding its long-term initiative to create more female-friendly spaces. Through partnerships with over 200 shopping malls and nearly 500 Purcotton
stores nationwide it provides free emergency sanitary products—delivering meaningful change for women’s everyday needs.(III) Caring for Diverse Groups to Extend Warmth to Every Corner
1. Festive Public Welfare Empowerment: During International Women’s Day the Company’s Party Committee organized the “Blooming Guardians”
campaign offering select Purcotton star products for public welfare pricing. This initiative raised donation to support women and children in need
delivering warmth and hope.
2. Health Education in Schools: During May’s Health Month the “Party-Building Public Welfare Classes” reached 11 schools including two special
education institutions providing students and teachers with personal hygiene and wound care knowledge and fostering healthcare awareness among
children with special needs.
3. Targeted Assistance Warms Hearts: The Party Committee partnered with Longhua Charity Association and Longhua People’s Hospital for the “Party-Building Guards Health · Love Fills Longhua” initiative donating professional nasal care products to support rhinitis patients and underprivileged
families. The committee also collaborated with Shenzhen Express Delivery Industry Association’s Party Committee for the “Care for Delivery Riders”
campaign donating cooling vests to Yunda and JD teams.50
Section V Important Matters
Section V
Important
Matters51
Section V Important Matters
I. Commitments Fullled within and not Fullled by the End of the Reporting Period by the
Company’s Actual Controller Shareholders Related Parties Acquirer the Company and
Other Committing Parties
□Applicable √N/A
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 the Listed Company by the Controlling Shareholder
and Other Related Parties
□Applicable √N/A
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other related parties during the Reporting
Period.III. Illegal External Guarantee
□Applicable √N/A
The Company had no illegal external guarantee 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. Explanation by the Board of Directors the Board of Supervisors and the Audit Committee
on the “Non-Standard Audit Report” Issued by the Accounting Firm for the Reporting Period
□Applicable √N/A
VI. Explanation by the Board of Directors on the “Non-standard Audit Report” of the Previous
Year
□Applicable √N/A
VII. Matters Related to Bankruptcy Reorganization
□Applicable √N/A
The Company had no matters related to bankruptcy reorganization during the Reporting Period.52
Section V Important Matters
VIII. Litigation Matters
Major litigation and arbitration matters
□Applicable √N/A
The Company had no major litigation and arbitration matters in the year.Other litigation matters
□Applicable √N/A
IX. Punishment and Rectification
□Applicable √N/A
The Company had no punishment and rectification during the Reporting Period.X. Credit Status of the Company Its Controlling Shareholders and Actual Controller
□Applicable √N/A
XI. Major Related-party Transactions
1. Related-party transactions related to daily operation
□Applicable √N/A
The Company had no related-party transactions related to daily operation during the Reporting Period.
2. Related-party transactions involving the acquisition or sale of assets or equity
□Applicable √N/A
The Company had no related-party transactions involving the acquisition or sale of assets or equity during the Reporting Period.
3. Related-party transactions involving joint external investment
□Applicable √N/A
The Company had no related-party transactions involving joint external investment during the Reporting Period.
4. Related-party receivables and payables
□Applicable √N/A
The Company had no related-party receivables and payables during the Reporting Period.53
Section V Important Matters
5. Transactions with related nance companies
□Applicable √N/A
There was no deposit loan credit granting or other financial business between the Company and the finance company with which it is affiliated the
finance company controlled by the Company and the related parties.
6. Transactions between the Company’s majority-owned nance companies and related parties
□Applicable √N/A
There was no deposit loan credit granting or other financial business between the Company’s majority-owned finance companies and related parties.
7. Other major related-party transactions
□Applicable √N/A
The Company had no other major related-party transactions during the Reporting Period.XII. Major Contracts and Their Performance
1. Trusteeship contracting and lease
(1) Trusteeship
□Applicable √N/A
The Company had no trusteeship during the Reporting Period.
(2) Contracting
□Applicable √N/A
The Company had no contracting during the Reporting Period.
(3) Lease
□Applicable √N/A
The Company had no lease during the Reporting Period.
2. Major guarantee
□Applicable √N/A
The Company had no major guarantee during the Reporting Period.
3. Major contracts for daily operation
□Applicable √N/A54
Section V Important Matters
4. Other major contracts
□Applicable √N/A
The Company had no other major contracts during the Reporting Period.XIII. Explanation on Other Signicant Events
√Applicable □N/A
In July 2023 the Company entered into a relocation compensation and resettlement agreement with Shenzhen Xingda Real Estate Development Co. Ltd.(hereafter referred to as "Xingda") for the urban renewal involving the land and above-ground buildings in the Winner Industrial Park in Longhua District
Shenzhen which the Company holds. Due to the significant changes in the real estate market the project was put on hold in January 2024. To smoothly
advance the project shorten the land idle time and reduce uncertainties in the construction process and in light of the market conditions for relocation
compensation for urban renewal the Company conducted multiple rounds of negotiations with its partner and signed a supplementary agreement on
August 19 2024. According to the proposed supplementary agreement the area of office space and commercial space obtained by the Company remains
unchanged while the area of residential space and the amount of compensation obtained by the Company will be linked to the actual average transaction
price of the residential units obtained by Xingda Company. There is uncertainty in the area of residential space and the amount of indemnity obtained by
the Company given the significant fluctuations in the real estate market. Currently Xingda has obtained the implementation entity confirmation letter for
this project and is proceeding with building demolition.This project is subject to factors including urban renewal policy adjustments urban planning changes counterparty performance capabilities market
conditions pricing and force majeure and has a relatively long execution period. The Company will actively promote the project strengthen
communication and process control and strive to reduce uncertainties in the execution process.XIV. Signicant Events of Subsidiaries
□Applicable √N/A55
Section VI Changes in Shares and Information on Shareholders
Section VI
Changes in
Shares and
Information on
Shareholders56
Section VI Changes in Shares and Information on Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before this change Increase/decrease (+ -) After this change
Bonus Share conversion
Proportio New issue of
Number issuanc from capital Others Sub-total Number Proportion
n shares
e reserves
I. Shares with selling restrictions 406824127 69.86% 0 0 0 -95950 -95950 406728177 69.84%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
00.00%0000000.00%
legal persons
3. Other shares held by domestic
2097400.04%000-95950-959501137900.02%
individuals and legal persons
Including: shares held by
00.00%0000000.00%
domestic legal persons
Shares held by domestic natural
2097400.04%000-95950-959501137900.02%
persons
4. Shares held by overseas
40661438769.83%0000040661438769.83%
individuals and legal persons
Including: shares held by overseas
40661438769.83%0000040661438769.83%
legal persons
Shares held by overseas natural
00.00%0000000.00%
persons
II. Shares without selling
17550568130.14%000959509595017560163130.16%
restrictions
1. RMB ordinary shares 175505681 30.14% 0 0 0 95950 95950 175601631 30.16%
2. Domestically listed foreign
00.00%0000000.00%
shares
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total number of shares 582329808 100.00% 0 0 0 0 0 582329808 100.00%
Reasons for changes in shares
√Applicable □N/A
Shareholdings of Directors Supervisors and senior management are subject to lock-up periods release of restrictions on sale in compliance with
requirements of China Securities Regulatory Commission. Details are provided in “2. Changes in Restricted Shares” within this section.Approval on changes in shares
□Applicable √N/A
Transfer due to changes in shares
□Applicable √N/A57
Section VI Changes in Shares and Information on Shareholders
Progress of share repurchase implementation
□Applicable √N/A
Progress of reduction of repurchased shares via centralized bidding transactions
□Applicable √N/A
The impact of changes in shares on nancial indicators such as basic earnings per share diluted earnings per share and net assets per share attributable to
ordinary shareholders of the Company for the latest year and the latest period
□Applicable √N/A
Other information deemed necessary by the Company or required by securities regulatory authorities to disclose
□Applicable √N/A
2. Changes in restricted shares
√Applicable □N/A
Unit: share
Number of Increased
restricted number of
Name of Opening number of shares restricted Closing number of
Reason for restriction Proposed restriction release date
shareholder restricted shares released in shares in restricted shares
current current
period period
The controlling
Winner
shareholder voluntarily
Group 406614387 0 0 406614387 16 September 2025
extends the lock-up
Limited
period
Locked shares held by
Fang 25% of the total shares held are
87000 0 0 87000 Directors Supervisors
Xiuyuan unlocked at the beginning of each year
and senior management
Locked shares held by
25% of the total shares held are
Zhang Yan 3750 0 0 3750 Directors Supervisors
unlocked at the beginning of each year
and senior management
Locked shares held by
Chen 25% of the total shares held are
23040 0 0 23040 Directors Supervisors
Huixuan unlocked at the beginning of each year
and senior management
Locked shares held by Subject to the relevant regulations on
Liu Hua 22000 22000 0 0 Directors Supervisors share lock-up for departing Directors
and senior management Supervisors and senior management
Locked shares held by Subject to the relevant regulations on
Xu Xiaodan 22800 22800 0 0 Directors Supervisors share lock-up for departing Directors
and senior management Supervisors and senior management
Locked shares held by Subject to the relevant regulations on
Zhang Li 15000 15000 0 0 Directors Supervisors share lock-up for departing Directors
and senior management Supervisors and senior management
Locked shares held by Subject to the relevant regulations on
Wang Ying 36150 36150 0 0 Directors Supervisors share lock-up for departing Directors
and senior management Supervisors and senior management
Total 406824127 95950 0 406728177 -- --
II. Securities Issuance and Listing
□Applicable √N/A58
Section VI Changes in Shares and Information on Shareholders
III. Number of Shareholders and Their Shareholding
Unit: share
Total number of preference sharesholders Total number of shareholders
Total number of ordinary shareholders as of the
27915 with restored voting rights at the end of the 0 holding shares with special voting 0
end of the Reporting Period
Reporting Period (if any) (see Note 8) rights (if any)
Shareholding information of shareholders holding 5% or more or the top 10 shareholders (excluding shares lent through margin nancing and securities lending)
Proportio Number of Pledged marked or frozen
Change Number of held Number of held
n of shares held at
Nature of during the shares with shares without
Name of shareholder ownershi the end of the
shareholder Reporting selling selling
p interest Reporting Status Number
Period restrictions restrictions
(%) Period
Overseas legal
Winner Group Limited 69.83% 406614387 0 406614387 0 N/A 0
person
Bank of China Limited - Huabao CSI
Others 1.28% 7434660 / 0 7434660 N/A
Healthcare ETF 0
Industrial and Commercial Bank of China
Others 0.78% 4537103 -480410 0 4537103 N/A 0
Limited – E Fund ChiNext ETF
Hong Kong Securities Clearing Company Overseas legal
0.70% 4076658 -1461087 0 4076658 N/A 0
Limited person
Domestic non-
Xiamen Leyuan Investment Partnership
stateowned legal 0.64% 3710944 -6605900 0 3710944 N/A 0
(Limited Partnership)
person
Agricultural Bank of China Limited – CSI 500
Others 0.59% 3436800 216040 0 3436800 N/A 0
ETF
Guoshou Asset Management – China Life
Insurance Company Limited – Participating
Policy – Guoshou Asset Management China Others 0.56% 3259788 1001720 0 3259788 N/A 0
Life Balanced Equity Portfolio Single Asset
Management Plan (Available-for-Sale)
China Life Insurance Company Limited –
Traditional – Ordinary Insurance Products – Others 0.53% 3088000 -490240 0 3088000 N/A 0
005L – CT001 Shanghai
Agricultural Bank of China Limited – BOCOM
Schroders Fund Domestic Demand Growth
Others 0.48% 2774008 1432908 0 2774008 N/A 0
One-Year Holding Mixed Securities
Investment Fund
China CITIC Bank Corporation Limited –
BOCOM Schroders Fund Quality Growth One-
Others 0.45% 2623980 1368680 0 2623980 N/A 0
Year Holding Mixed Securities Investment
Fund
Strategic investors or general legal persons become top 10 shareholders
N/A
due to the allotment of new shares (if any) (see note 3)
Explanation of the related party relationships or
concerted actions among the above-mentioned N/A
shareholders
Explanation of the delegation/trust of voting rights or waiver of voting
N/A
rights among the above-mentioned shareholders
Special note on the repurchase account among
N/A
the top 10 shareholders (see Note 11)59
Section VI Changes in Shares and Information on Shareholders
Shareholding information of the top 10 shareholders of shares without selling restriction (excluding shares lent through margin nancing and securities lending and lock-up shares held by
senior management)
Number of held shares without selling Type of share
Name of shareholder restrictions as of the end of the Reporting
Period Type of share Number
Bank of China Limited - Huabao CSI Healthcare ETF 7434660 RMB ordinary shares 7434660
Industrial and Commercial Bank of China Limited – E Fund ChiNext ETF 4537103 RMB ordinary shares 4537103
Hong Kong Securities Clearing Company Limited 4076658 RMB ordinary shares 4076658
Xiamen Leyuan Investment Partnership (Limited Partnership) 3710944 RMB ordinary shares 3710944
Agricultural Bank of China Limited – CSI 500 ETF 3436800 RMB ordinary shares 3436800
Guoshou Asset Management – China Life Insurance Company Limited –
Participating Policy – Guoshou Asset Management China Life Balanced 3259788 RMB ordinary shares 3259788
Equity Portfolio Single Asset Management Plan (Available-for-Sale)
China Life Insurance Company Limited – Traditional – Ordinary
3088000 RMB ordinary shares 3088000
Insurance Products – 005L – CT001 Shanghai
Agricultural Bank of China Limited – BOCOM Schroders Fund Domestic
2774008 RMB ordinary shares 2774008
Demand Growth One-Year Holding Mixed Securities Investment Fund
China CITIC Bank Corporation Limited – BOCOM Schroders Fund
2623980 RMB ordinary shares 2623980
Quality Growth One-Year Holding Mixed Securities Investment Fund
China Merchants Bank Co. Ltd. – Dongfanghong Ruize Three-Year
2377103 RMB ordinary shares 2377103
Holding Mixed Securities Investment Fund
Explanation of the related party relationships or concerted actions between
the top 10 shareholders of outstanding shares without selling restriction
N/A
and between the top 10 shareholders of outstanding shares without selling
restriction and the top 10 shareholders
Information on the top 10 shareholders involved in margin trading and
N/A
securities lending
Shares lent through margin financing and securities lending by shareholders holding 5% or more shares the top 10 shareholders and top 10 holders of
outstanding shares without selling restriction
□Applicable √N/A
Changes in the top 10 shareholders and top 10 holders of outstanding shares without selling restriction as caused by margin financing and securities
lending and returning activities
□Applicable √N/A
Has the Company a differentiated voting rights structure
□Yes √No60
Section VI Changes in Shares and Information on Shareholders
Whether the top 10 ordinary shareholders and the top 10 holders of ordinary shares without selling restriction conducted agreed repurchase transactions
during the Reporting Period
□Yes √No
The top 10 ordinary shareholders and the top 10 holders of ordinary shares without selling restriction did not conduct agreed repurchase transactions
during the Reporting Period.IV. Equity Changes of Directors Supervisors and Senior Management
□Applicable √N/A
There were no changes in the shareholdings of the Company’s directors supervisors or senior management during the reporting period. For details
please refer to the 2024 Annual Report.V. Change in Controlling Shareholders or Actual Controllers
Change of controlling shareholders during the reporting period
□Applicable √N/A
The Company had no change in controlling shareholders during the reporting period. Changes in actual controller during the reporting period
□Applicable √N/A
The Company had no change in actual controller during the reporting period.VI. Preference Shares
□Applicable √N/A
The Company had no preference shares during the Reporting Period.61
Section VII Bonds
Section VII
Bonds
□Applicable √N/A62
Section VIII Financial Report
Section VIII
Financial Report63
Section VIII Financial Report
I. Auditor’s Report
Whether the semi-annual report is audited
□Yes √No
The Company's semi-annual financial statement has not been audited.II. Financial Statements
The notes to financial statements are expressed in Renminbi Yuan.64
Section VIII Financial Report
1. Consolidated balance sheet
Preparer: Winner Medical Co. Ltd.
30 June 2025
Unit: RMB
Items Closing balance Opening balance
Current assets:
Currency fund 1532405558.47 1412088898.63
Settlement reserves
Placements to banks and other financial institutions
Trading financial assets 2124524520.71 2921341484.39
Derivative financial assets
Notes receivable 23468822.98 34319961.81
Accounts receivable 1204624419.81 980617641.38
Receivables financing 44592896.78 68349926.24
Prepayments 152802786.22 107051901.68
Premium receivable
Reinsurance receivables
Due from Reinsurer for reserve of reinsurance
contract
Other receivables 177877901.77 186351012.28
Including: Interest receivable
Dividends receivable
Financial assets held under resale agreements
Inventories 1946406554.83 1957814608.25
Including: Data resources
Contract assets
Financial assets held for trading
Current portion of non-current assets 350659891.23 345468268.20
Other current assets 86737201.57 67736523.90
Total current assets 7644100554.37 8081140226.7665
Section VIII Financial Report
Items Closing balance Opening balance
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 94230610.68 88435629.22
Long-term equity investments 426186435.73 445355778.00
Other equity investments
Other non-current financial assets 107419143.12 107906716.86
Investment properties 1910690.44 2360346.25
Fixed assets 3945978042.78 3354304108.81
Construction in progress 599316255.96 1074955450.40
Productive biological assets
Oil and gas assets
Right-of-use assets 588511186.31 595222623.66
Intangible assets 1049738760.82 1095755498.27
Including: Data resources
Development expenditures
Including: Data resources
Goodwill 1249294976.83 1251264505.00
Long-term prepaid expenses 123764487.44 143855144.02
Deferred tax assets 132167096.15 139000387.64
Other non-current assets 2055143661.31 2012299546.63
Total non-current assets 10373661347.57 10310715734.76
Total assets 18017761901.94 18391855961.52
Current liabilities:
Short-term borrowings 1800844655.00 1969044164.65
Borrowings from the Central Bank
Placements from banks and other financial
institutions
Trading financial liabilities66
Section VIII Financial Report
Items Closing balance Opening balance
Derivative financial liabilities
Notes payable 357293200.97 431873210.11
Accounts payable 950746182.38 1155930554.98
Receipts in advance
Contract liabilities 168112166.85 182755504.60
Financial assets sold under repurchase agreements
Customer deposits and deposits from banks and other
financial institutions
Customer money for securities trading
Proceeds from securities underwriting on agency
basis
Employee benefits payable 238452569.48 308955076.89
Taxes and surcharges payable 112305368.18 123630574.88
Other payables 685506960.47 681390743.80
Including: Interest payable
Dividends payable 103930651.75 164868250.80
Fees and commissions payable
Reinsurance payables
Liabilities classified as held for sale
Non-current liabilities due within one year 206174504.07 396768243.67
Other current liabilities 20865332.19 21235048.58
Total current liabilities 4540300939.59 5271583122.16
Non-current liabilities:
Reserves for insurance Contract
Long-term borrowings 50000000.00 53000000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 412913690.20 440876652.33
Long-term payables 26483360.45 48544431.64
Long-term employee benefits payable 14006037.56 13247971.3467
Section VIII Financial Report
Items Closing balance Opening balance
Provisions
Deferred income 177953549.44 157154401.72
Deferred tax liabilities 146882546.05 158515830.62
Other non-current liabilities 373262348.97 373262348.97
Total non-current liabilities 1201501532.67 1244601636.62
Total liabilities 5741802472.26 6516184758.78
Owner's equity:
Share capital 582329808.00 582329808.00
Other equity investments
Including: Preference shares
Perpetual bonds
Capital reserves 3405888168.65 3378540115.00
Less: Treasury shares 7193725.00 7282100.00
Other comprehensive income -4760520.44 -2637827.10
Specialised reserves
Surplus reserves 420212778.13 420212778.13
General reserve
Unappropriated profit 7126532427.60 6780116870.53
Total equity attributable to owners of the parent 11523008936.94 11151279644.56
Non-controlling interests 752950492.74 724391558.18
Total equity 12275959429.68 11875671202.74
Total liabilities and equity 18017761901.94 18391855961.52
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan68
Section VIII Financial Report
2. Parent company’s balance sheet
Unit: RMB
Items Closing balance Opening balance
Current assets:
Currency fund 625314789.67 443572315.60
Trading financial assets 2096234103.86 2794105538.09
Derivative financial assets
Notes receivable 3754836.79 6635069.05
Accounts receivable 428209006.48 349608101.82
Receivables financing 22097072.88 24348899.43
Prepayments 188221304.47 130809600.46
Other receivables 239950266.66 167026860.96
Including: Interest receivable
Dividends receivable 3333744.00 9404946.00
Inventories 188636880.56 206425686.10
Including: Data resources
Contract assets
Financial assets held for trading
Current portion of non-current assets 350659891.23 345468268.20
Other current assets 13260255.04 8707781.75
Total current assets 4156338407.64 4476708121.46
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 32054602.69 31209579.38
Long-term equity investments 5209650925.70 5195497758.83
Other equity investments
Other non-current financial assets 76673047.39 76673047.39
Investment properties
Fixed assets 303923398.35 38592292.3869
Section VIII Financial Report
Items Closing balance Opening balance
Construction in progress 30655605.37 214011382.64
Productive biological assets
Oil and gas assets
Right-of-use assets 15754191.92 32141280.38
Intangible assets 40521001.03 41672000.26
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepaid expenses 12230658.75 15685458.76
Deferred tax assets 24654796.50 30999936.31
Other non-current assets 1792242356.47 1767046194.63
Total non-current assets 7538360584.17 7443528930.96
Total assets 11694698991.81 11920237052.42
Current liabilities:
Short-term borrowings 0.00 200130600.00
Trading financial liabilities
Derivative financial liabilities
Notes payable 1041735599.95 843693594.39
Accounts payable 517341432.86 469844799.47
Receipts in advance
Contract liabilities 35516662.57 50096915.01
Employee benefits payable 48097489.24 64256450.47
Taxes and surcharges payable 15843357.99 13779416.66
Other payables 394148152.57 459940163.58
Including: Interest payable
Dividends payable 101741971.75 162645754.80
Liabilities classified as held for sale
Non-current liabilities due within one year 13524221.09 193218394.3670
Section VIII Financial Report
Items Closing balance Opening balance
Other current liabilities 2855944.13 2861257.23
Total current liabilities 2069062860.40 2297821591.17
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 22510710.01 32224060.33
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 202038.91 424728.11
Deferred tax liabilities
Other non-current liabilities 373262348.97 373262348.97
Total non-current liabilities 395975097.89 405911137.41
Total liabilities 2465037958.29 2703732728.58
Owner's equity:
Share capital 582329808.00 582329808.00
Other equity investments
Including: Preference shares
Perpetual bonds
Capital reserves 3403642235.30 3376294181.65
Less: Treasury shares 7193725.00 7282100.00
Other comprehensive income
Specialised reserves
Surplus reserves 411397111.21 411397111.21
Unappropriated profit 4839485604.01 4853765322.98
Total equity 9229661033.52 9216504323.84
Total liabilities and equity 11694698991.81 11920237052.42
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan71
Section VIII Financial Report
3. Consolidated income statement
Unit: RMB
Items Semiannual 2025 Semiannual 2024
I. Total Revenue 5296211956.92 4033505104.33
Including: Revenue 5296211956.92 4033505104.33
Interest income
Premium earned
Fee and commission income
II. Total Costs 4657723411.78 3576014244.81
Including: Cost of sales 2736394780.72 2068470442.58
Interest expenses
Fee and commission expenses
Surrender value payment
Net claim payments
Net amount of provisions for insurance contract liabilities
recognised
Policy dividend payments
Reinsurance expenses
Taxes and surcharges 47206665.58 36656279.12
Selling expenses 1254903652.81 1055741084.22
Administrative expenses 436173126.72 309446026.40
Research and development expenses 194377566.90 143142952.33
Finance expenses -11332380.95 -37442539.84
Including: Interest expenses 32211146.81 24015659.66
Interest income 40152719.55 57012846.01
Add: Other income 44523302.06 37282933.10
Investment income (loss is expressed with “-”) 10250616.45 33445096.19
Including: Income from investments in associates and joint ventures -12839023.48 -7669213.76
Income from the derecognition of financial assets measured
at amortised cost
Exchange gains (loss is expressed with “-”)
Net position hedging gains (loss is expressed with “-”)72
Section VIII Financial Report
Items Semiannual 2025 Semiannual 2024
Fair value gains (loss is expressed with “-”) 8043719.46 7577712.84
Credit impairment losses (loss is expressed with “-”) -11497804.05 -8295817.44
Impairment losses of assets (loss is expressed with “-”) -32261264.96 -55975503.16
Gains on disposal of assets (loss is expressed with “-”) 1518248.05 1930800.28
III. Operating profit (loss is expressed with “-”) 659065362.15 473456081.33
Add: Non-operating income 2981866.13 6143356.51
Less: Non-operating expenses 16418323.58 6218160.01
IV. Profit before income tax (loss is expressed with “-”) 645628904.70 473381277.83
Less: Income tax expenses 127441441.90 67151050.24
V. Profit (loss is expressed with “-”) 518187462.80 406230227.59
(I) Classified by continuity of operations
1. Profit from continuing operations (loss is expressed with “-”) 518187462.80 406230227.59
2. Profit from a discontinued operation (loss is expressed with “-”)
(II) Classified by ownership
1. Profit attributable to shareholders of the parent 491998009.07 384150379.21
2. Profit or loss attributable to non-controlling interests 26189453.73 22079848.38
VI. Net amount of other comprehensive income after tax 2654748.45 -5381735.14
Other comprehensive income net of tax attributable to owners of the parent -2122693.34 -2931540.14
(I) Other comprehensive income that will not be reclassified to profit or loss
1. Remeasurement of a defined benefit plan
2. Other comprehensive income using the equity method that will not be
reclassified to profit or loss
3. Change in the fair value of other equity investments
4. Change in the fair value of the entity’s own credit risks
5. Others
(II) Other comprehensive income that may be reclassified to profit or loss -2122693.34 -2931540.14
1. Other comprehensive income using the equity method that may be
reclassified to profit or loss
2. Change in the fair value of other debt investments
3. Amount recognised in other comprehensive income resulting from the
reclassification of financial assets
4. Provision for credit impairment of other debt investments73
Section VIII Financial Report
Items Semiannual 2025 Semiannual 2024
5. Cash flow hedge reserve
6. Exchange differences on translation of foreign currency financial
-2122693.34-2931540.14
statements
7. Others
Other comprehensive income net of tax attributable to non-
4777441.79-2450195.00
controlling interests
VII. Total comprehensive income for the period 520842211.25 400848492.45
Total comprehensive income attributable to owners of the parent 489875315.73 381218839.07
Total comprehensive income attributable to non-controlling interests 30966895.52 19629653.38
VIII. Earnings per share:
(I) Basic earnings per share 0.8449 0.6568
(II) Diluted earnings per share 0.8449 0.6568
For business combination involving entities under common control occurring during the current period the net profit of the combined party generated
before the business combination is RMB0.00 and the net profit of the combined party generated for the prior period is RMB0.00.Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan74
Section VIII Financial Report
4. Parent company’s income statement
Unit: RMB
Items Semiannual 2025 Semiannual 2024
I. Operating revenue 1407280615.50 1142885165.37
Less: Cost of sales 930548941.26 843883491.16
Taxes and surcharges 6495567.57 2846781.23
Selling expenses 199054549.91 187126269.52
Administrative expenses 121996944.95 113371192.10
Research and development expenses 42638188.80 35362397.99
Finance expenses -28923504.18 -39776317.53
Including: Interest expenses 8717763.69 12318004.15
Interest income 33088095.54 49479261.49
Add: Other income 10208580.77 3495598.59
Investment income (loss is expressed with “-”) 27712033.57 39088282.06
Including: Income from investments in associates and joint ventures 213714.71 115196.26
Income from the derecognition of financial assets measured at
amortised cost
Net position hedging gains (loss is expressed with “-”)
Fair value gains (loss is expressed with “-”) 8128565.77 8771776.99
Credit impairment losses (loss is expressed with “-”) -4318872.72 -3330023.26
Impairment losses of assets (loss is expressed with “-”) -10216433.96 -29827536.85
Gains on disposal of assets (loss is expressed with “-”) 716226.00 -5882.01
II. Operating profit (loss is expressed with “-”) 167700026.62 18263566.42
Add: Non-operating income 172544.11 2874156.67
Less: Non-operating expenses 3077944.32 13301.22
III. Profit before income tax (loss is expressed with “-”) 164794626.41 21124421.87
Less: Income tax expenses 33491893.38 -176324.95
IV. Profit (loss is expressed with “-”) 131302733.03 21300746.82
(I) Profit from continuing operations (loss is expressed with “-”) 131302733.03 21300746.82
(II) Profit from a discontinued operation (loss is expressed with “-”)75
Section VIII Financial Report
Items Semiannual 2025 Semiannual 2024
V. Net amount of other comprehensive income after tax
(I) Other comprehensive income that will not be reclassified to profit or
loss
1. Remeasurement of a defined benefit plan
2. Other comprehensive income using the equity method that will not be
reclassified to profit or loss
3. Change in the fair value of other equity investments
4. Change in the fair value of the entity’s own credit risks
5. Others
(II) Other comprehensive income that may be reclassified to profit or loss
1. Other comprehensive income using the equity method that may be
reclassified to profit or loss
2. Change in the fair value of other debt investments
3. Amount recognised in other comprehensive income resulting from the
reclassification of financial assets
4. Provision for credit impairment of other debt investments
5. Cash flow hedge reserve
6. Exchange differences on translation of foreign currency financial
statements
7. Others
VI. Total comprehensive income for the period 131302733.03 21300746.82
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan76
Section VIII Financial Report
5. Consolidated statement of cash flows
Unit: RMB
Items Semiannual 2025 Semiannual 2024
I. CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from the sale of goods and the rendering of services 5180823697.99 3990560078.41
Net increase in customer deposits and deposits from banks and other financial
institutions
Net increase in borrowings from the Central Bank
Net increase in placements from other financial institutions
Cash receipts for premium of original insurance contract
Net cash receipts for reinsurance business
Net increase in policyholders’ deposits and investment funds
Cash received from interest fee and commission income
Net increase in placements from banks and other financial institutions
Net increase in funds for repurchase business
Net cash receipts for securities trading on agency basis
Receipts of taxes and surcharges refunds 68856098.69 65619772.70
Other cash receipts relating to operating activities 155792268.99 55894748.84
Total cash inows from operating activities 5405472065.67 4112074599.95
Cash payments for goods and services 3261937067.17 2474941986.21
Net increase in loans and advances to customers
Net increase in deposits with the Central Bank and other financial institutions
Cash payments for settlement of claims under the original insurance contract
Net increase in placements to banks and other financial institutions
Cash payments for interest fee and commission expenses
Cash payments for insurance policy dividends
Cash payments to and on behalf of employees 1074729045.85 866973104.55
Payments of taxes and surcharges 390462598.16 229343272.00
Other cash payments relating to operating activities 338417580.42 347482720.43
Total cash outows from operating activities 5065546291.60 3918741083.19
Net cash ows from operating activities 339925774.07 193333516.7677
Section VIII Financial Report
Items Semiannual 2025 Semiannual 2024
II. CASH FLOWS FROM INVESTING ACTIVITIES:
Cash receipts from returns of investments 1261463648.10 1464000000.00
Cash receipts from returns on investments 22626000.03 106178840.35
Net cash receipts from disposal of fixed assets intangible assets and other
76372.101341937.98
long-term assets
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts relating to investing activities
Total cash inows from investing activities 1284166020.23 1571520778.33
Cash payments to acquire fixed assets intangible assets and other long-term
304146237.54436264526.19
assets
Cash payments for investments 455760177.14 1559074000.00
Net increase in pledged loans
Net cash payments for acquisition of subsidiaries and other business units 55605.69
Other cash payments relating to other investing activities
Total cash outows from investing activities 759906414.68 1995394131.88
Net cash ows from investing activities 524259605.55 -423873353.55
III. CASH FLOWS FROM FINANCING ACTIVITIES:
Cash proceeds from investments by others 150000.00 200000.00
Including: Cash receipts from capital contributions from non-controlling
150000.00200000.00
interests of subsidiaries
Cash receipts from borrowings 1443534035.41 1170196567.28
Other cash receipts relating to financing activities 180000000.00
Total cash inows from nancing activities 1443684035.41 1350396567.28
Cash repayments for debts 1787957182.13 1503100000.00
Cash payments for distribution of dividends or profit and interest expenses 227188158.50 99563509.69
Including: Dividends or profit paid to non-controlling shareholders of
subsidiaries
Other cash payments relating to financing activities 169977304.87 308629278.45
Total cash outows from nancing activities 2185122645.50 1911292788.14
Net cash ows from nancing activities -741438610.09 -560896220.86
IV. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
7242233.038094521.16
EQUIVALENTS
V. NET INCREASE IN CASH AND CASH EQUIVALENTS 129989002.56 -783341536.49
Add: Cash and cash equivalents at beginning of period 1357097385.35 4677340782.45
VI. CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 1487086387.91 3893999245.96
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan78
Section VIII Financial Report
6. Parent company’s statement of cash flows
Unit: RMB
Items Semiannual 2025 Semiannual 2024
I. CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from the sale of goods and the rendering of services 1933668432.22 1461979627.57
Receipts of taxes and surcharges refunds 28335242.87 48183207.49
Other cash receipts relating to operating activities 23122316.81 12521749.16
Total cash inows from operating activities 1985125991.90 1522684584.22
Cash payments for goods and services 955349188.72 540875383.95
Cash payments to and on behalf of employees 193143050.68 198607174.73
Payments of taxes and surcharges 38627293.08 3548498.60
Other cash payments relating to operating activities 630849133.15 225362322.31
Total cash outows from operating activities 1817968665.63 968393379.59
Net cash ows from operating activities 167157326.27 554291204.63
II. CASH FLOWS FROM INVESTING ACTIVITIES:
Cash receipts from returns of investments 1046151241.07 1214000000.00
Cash receipts from returns on investments 33418287.99 102459308.04
Net cash receipts from disposal of fixed assets intangible assets and other long-
3831256.86289861.38
term assets
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts relating to investing activities
Total cash inows from investing activities 1083400785.92 1316749169.42
Cash payments to acquire fixed assets intangible assets and other long-term assets 61647973.40 97016023.57
Cash payments for investments 417000000.00 1334074000.00
Net cash payments for acquisition of subsidiaries and other business units
Other cash payments relating to other investing activities
Total cash outows from investing activities 478647973.40 1431090023.57
Net cash ows from investing activities 604752812.52 -114340854.15
III. CASH FLOWS FROM FINANCING ACTIVITIES:
Cash proceeds from investments by others
Cash receipts from borrowings 200000000.0079
Section VIII Financial Report
Items Semiannual 2025 Semiannual 2024
Other cash receipts relating to financing activities 80000000.00
Total cash inows from nancing activities 0.00 280000000.00
Cash repayments for debts 370000000.00 1280000000.00
Cash payments for distribution of dividends or profit and interest expenses 209821669.94 99293133.63
Other cash payments relating to financing activities 13721388.77 208415552.24
Total cash outows from nancing activities 593543058.71 1587708685.87
Net cash ows from nancing activities -593543058.71 -1307708685.87
IV. EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
3578200.752169362.18
EQUIVALENTS
V. NET INCREASE IN CASH AND CASH EQUIVALENTS 181945280.83 -865588973.21
Add: Cash and cash equivalents at beginning of period 443341985.31 3709747259.03
VI. CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 625287266.14 2844158285.82
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan80
Section VIII Financial Report
7. Consolidated statement of changes in equity
Amount for the period
Unit: RMB
Semiannual 2025
Attributable to owners of the parent
Items Other equity investments
Non-controlling
Less: Other Total equity
Capital Specialised Surplus Unappropriate interests
Share capital Prefere Perpet Treasury comprehensiv General reserve Others Sub-total reserves reserves reserves d profit
nce ual Others shares e income
shares bonds
3378540114202127786780116870.11151279644.11875671202.
I. Balance at end of prior year 582329808.00 7282100.00 -2637827.10 724391558.18
5.00.13535674
Add: Changes in accounting policies
Correction of prior period errors
Others
3378540114202127786780116870.11151279644.11875671202.
II. Balance at beginning of year 582329808.00 7282100.00 -2637827.10 724391558.18
5.00.13535674
III. Changes for the period Amount 27348053.6 346415557.0
-88375.00-212269334371729292.3828558934.56400288226.94
(Decrease is indicated by “-”) 5 7
491998009.0
(I) Total comprehensive income -2122693.34 48987531573 30966895.52 520842211.25
7
(II) Owners’ contributions and 27348053.6
-88375.0027436428.65150000.0027586428.65
reduction in capital 5
1. Ordinary shares invested by
150000.00150000.00
owners
2. Capital contributions from holders
of other equity instruments
3. Amount of share-based payments 27348053.6
27348053.6527348053.65
recognised in equity 5
4. Others -88375.00 88375.00 88375.00
-
(III) Profit distribution 145582452.0 -145582452.00 -2557960.96 -148140412.96
0
1. Appropriation to surplus reserves81
Section VIII Financial Report
Semiannual 2025
Attributable to owners of the parent
Other equity
Items investments Non-
Less: Other controlling Total equity
Capital Specialise Surplus General Unappropria
Share capital Prefe Treasury comprehens Others Sub-total interests
Perpe reserves d reserves reserves reserve ted profit
rence Other shares ive income
tual
share s
bonds
s
2. Appropriation to general
reserve
---
3. Distribution to owners (or
145582452145582452.-2557960.96148140412.9
shareholders).00006
4. Others
(IV) Transfer within equity
1. Capitalisation of capital
reserves (or share capital)
2. Capitalisation of surplus
reserves (or share capital)
3. Loss made up by surplus
reserves
4. Transfer of changes in the
defined benefit plan to retained
earnings
5. Transfer of other
comprehensive income to
retained earnings
6. Others
(V) Specialised reserves
1. Appropriation for the period
2. Utilisation for the period
(VI) Others
-
582329808.340588817193725.420212771265324115230089752950492.1227595942
IV. Balance at end of period 4760520.4
0068.650078.1327.6036.94749.68
4
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan82
Section VIII Financial Report
Amount for the prior year
Unit: RMB
Semiannual 2024
Attributable to owners of the parent
Other equity
Items investments Non-
Other
Less: controlling Total equity
Capital comprehen Specialise Surplus General Unappropria
Share capital Prefe Perpe Treasury Others Sub-total interests reserves sive d reserves reserves reserve ted profit
rence tual Other shares income
share bond s
s s
594387367.438112647355242215369.4420212766088347115332243577097475.121103218
I. Balance at end of prior year
00487.2942.85478.1368.9928.001503.15
Add: Changes in accounting
policies
Correction of prior period
errors
Others
594387367.438112647355242215369.466088347115332243577097475.121103218
II. Balance at beginning of year
00487.2942.85468.9928.001503.15
III. Changes for the period - - - - -
Amount - 4202127 92985475. 22739880.3 44221586 2562376 2931540.1 102018941. 79279061.3
6094659.0078.13216
(Decrease is indicated by “-”) 4.75 46.96 4 72 6
-
384150379381218839.19629653.3400848492.
(I) Total comprehensive income 2931540.1.2107845
4
(II) Owners’ contributions and 2908958.
2908958.420.002908958.42
reduction in capital 42
1. Ordinary shares invested by
0.000.000.00
owners
2. Capital contributions from
holders of other equity 0.00 0.00 0.00
instruments
3. Amount of share-based 2908958.
2908958.420.002908958.42
payments recognised in equity 42
4. Others 0.00 0.00 0.00
---
(III) Profit distribution 291164904 291164904. 0.00 291164904..000000
1. Appropriation to surplus
0.000.000.00
reserves83
Section VIII Financial Report
Semiannual 2024
Attributable to owners of the parent
Other equity
Items investments Non-
Other
Less: controlling Total equity
Capital comprehen Specialise Surplus General Unappropria
Share capital Prefe Perpe Treasury Others Sub-total interests reserves sive d reserves reserves reserve ted profit
rence tual Other shares income
share bond s
s s
2. Appropriation to general
0.000.000.00
reserve
---
3. Distribution to owners (or
291164904291164904.0.00291164904.
shareholders).000000
4. Others 0.00 0.00 0.00
--
-
(IV) Transfer within equity 44512482 4512194 0.00 0.00 0.00 0.00 0.00
6094659.00
3.1782.17
1. Capitalisation of capital
0.000.000.00
reserves (or share capital)
2. Capitalisation of surplus
0.000.000.00
reserves (or share capital)
3. Loss made up by surplus
0.000.000.00
reserves
4. Transfer of changes in the
defined benefit plan to retained 0.00 0.00 0.00
earnings
5. Transfer of other
comprehensive income to 0.00 0.00 0.00
retained earnings
--
-
6. Others 44512482 4512194 0.00 0.00 0.00 0.00 0.00
6094659.00
3.1782.17
(V) Specialised reserves 0.00 0.00 0.00
1. Appropriation for the period 0.00 0.00 0.00
2. Utilisation for the period 0.00 0.00 0.00
--
1949818
(VI) Others 194981835. 3110226.98 191871608.
35.21
2123
588292708.39389102173147-420212767018202114312053599837355.120310427
IV. Balance at end of period
00622.5495.89716170.7078.1344.2086.285141.79
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan84
Section VIII Financial Report
8. Parent company’s statement of changes in equity
Amount for the period
Unit: RMB
Semiannual 2025
Other equity investments
Items Other
Less: Treasury Specialised
Share capital Prefer Perpet Capital reserves comprehensive Surplus reserves Unappropriated profit Others Total equity shares reserves
ence ual Others income
shares bonds
3376294181.6
I. Balance at end of prior year 582329808.00 7282100.00 411397111.21 4853765322.98 9216504323.84
5
Add: Changes in accounting policies
Correction of prior period errors
Others
3376294181.6
II. Balance at beginning of year 582329808.00 0.00 0.00 0.00 7282100.00 411397111.21 4853765322.98 9216504323.84
5
III. Changes for the period (loss is
27348053.65-88375.00-14279718.9713156709.68
expressed with “-”)
(I) Total comprehensive income 131302733.03 131302733.03
(II) Owners’ contributions and
27348053.65-88375.0027436428.65
reduction in capital
1. Ordinary shares invested by
owners
2. Capital contributions from holders
of other equity instruments
3. Amount of share-based payments
27348053.6527348053.65
recognised in equity
(4. Others -88375.00 88375.00
(III) Profit distribution -145582452.00
1. Appropriation to surplus reserves85
Section VIII Financial Report
Semiannual 2025
Other equity investments
Items Less: Other
Specialised
Share capital Prefer Perpet Capital reserves Treasury comprehensive Surplus reserves Unappropriated profit Others Total equity reserves
ence ual Others shares income
shares bonds
2. Distribution to owners (or
-145582452.00-145582452.00
shareholders)
3. Others
(IV) Transfer within equity
1. Capitalisation of capital reserves
(or share capital)
2. Capitalisation of surplus reserves
(or share capital)
3. Loss made up by surplus reserves
4. Transfer of changes in the defined
benefit plan to retained earnings
5. Transfer of other comprehensive
income to retained earnings
6. Others
(V) Specialised reserves
1. Appropriation for the period
2. Utilisation for the period
(VI) Others
IV. Balance at end of period 582329808.00 3403642235.30 7193725.00 411397111.21 4839485604.01 9229661033.52
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan86
Section VIII Financial Report
Amount for the prior period
Unit: RMB
Semiannual 2024
Other equity investments
Items Less: Other
Specialised
Share capital Prefer Perpet Capital reserves Treasury comprehensive Surplus reserves Unappropriated profit Others Total equity reserves
ence ual Others shares income
shares bonds
473552442.
I. Balance at end of prior year 594387367.00 4380380114.80 411397111.21 4897039093.59 9809651243.75
85
Add: Changes in accounting policies
Correction of prior period errors
Others
473552442.
II. Balance at beginning of year 594387367.00 4380380114.80 411397111.21 4897039093.59 9809651243.75
85
-
III. Changes for the period (loss is
-6094659.00-442215864.75256237646.-269864157.17-461937033.96
expressed with “-”)
96
(I) Total comprehensive income 21300746.83 21300746.83
(II) Owners’ contributions and
2908958.422908958.42
reduction in capital
1. Ordinary shares invested by
owners
2. Capital contributions from
holders of other equity instruments
3. Amount of share-based payments
2908958.422908958.42
recognised in equity
4. Others
(III) Profit distribution -291164904.00 -291164904.00
1. Appropriation to surplus reserves87
Section VIII Financial Report
Semiannual 2024
Other equity investments
Items Less: Other
Specialised
Share capital Prefer Perpet Capital reserves Treasury comprehensive Surplus reserves Unappropriated profit Others Total equity reserves
ence ual Others shares income
shares bonds
2. Distribution to owners (or
-291164904.00-291164904.00
shareholders)
3. Others
-
(IV) Transfer within equity -6094659.00 -445124823.17 451219482.
17
1. Capitalisation of capital reserves
(or share capital)
2. Capitalisation of surplus reserves
(or share capital)
3. Loss made up by surplus reserves
4. Transfer of changes in the defined
benefit plan to retained earnings
5. Transfer of other comprehensive
income to retained earnings
-
6. Others -6094659.00 -445124823.17 451219482.
17
(V) Specialised reserves
1. Appropriation for the period
2. Utilisation for the period
(VI) Others 194981835.-194981835.21
21
IV. Balance at end of period 217314795.
588292708.003938164250.05411397111.214627174936.429347714209.79
89
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan88
Section VIII Financial Report
III. General Information
Winner Medical Co. Ltd. (hereinafter referred to as the “Company”) formerly known as Winner Industries (Shenzhen) Co. Ltd. (hereinafter referred to
as “Winner Industries”) is a wholly foreign-owned enterprise established on 24 August 2000 with the approval of Shenzhen Municipal Administration
for Industry and Commerce.On 4 June 2015 with the approval of Economy Trade and Information Commission of Shenzhen Municipality Winner Industries was wholly changed
into a limited liability company renamed as “Winner Medical Co. Ltd.”.On 18 August 2020 after the reply of China Securities Regulatory Commission on Approval of the Registration of the Initial Public Offering of Winner
Medical Co. Ltd. (Z.J.X.K. [2020] No.1822) the Company issued 50 million ordinary shares in RMB to the public which was listed on the Shenzhen
Stock Exchange on 17 September 2020. Upon completion of the issuance the registered capital of the Company was RMB426492308.00.At the 2022 Annual General Meeting of Shareholders the equity distribution plan was reviewed and endorsed. Based on the 419737649 shares post the
deduction of repurchased shares the plan includes a cash dividend of RMB19.00 (tax included) for every 10 shares alongside a conversion of every 10
shares into 4 shares of share capital. Subsequently the Company’s share capital was adjusted to RMB594387367.00.In March 2024 the Company cancelled the 6094659 shares remaining in the 2021 repurchase plan excluding the first phase of the employee stock
ownership plan (including the reserved part) in the special securities account for repurchase and the total share capital of the Company decreased from
594387367 shares to 588292708 shares after the cancellation; In October 2024 the Company changed the use of 5962900 shares in the repurchase
account from the original “for the Company’s employee stock ownership plan or equity incentive” to “for the cancellation and reduction of theCompany’s registered capital”. After the cancellation the total share capital of the Company was reduced from 588292708 shares to 582329808 shares
with a total share capital of RMB582329808.00.The Company is engaged in the manufacturing industry specifically in the special-purpose equipment manufacturing sector as well as the textile
industry and the textile clothing and apparel industry.The Company and its subsidiaries (collectively referred to as the “Company”) are mainly engaged in the research and development production and sales
of medical consumables and healthy consumer goods. The product categories of the medical consumables segment are divided into Traditional wound
care and bandaging products advanced wound dressings products operating room consumables products infection prevention products healthcare &
personal care products and other products; the product categories of the healthy consumer goods segment are divided into dry and wet cotton tissues
sanitary napkins baby clothing and supplies adult apparel and other non-woven/woven products.Domicile of the Company: F42 Building 2 Huilong Business Center Shenzhen North Railway Station Area Minzhi Subdistrict Longhua District
Shenzhen City.The parent of the Company is Winner Group Limited incorporated in the Cayman Islands.The financial statements were approved and authorised for issue by the board of directors on 20 August 2025.89
Section VIII Financial Report
IV. Basis of Preparation of the Financial Statements
1. Basis of preparation
These financial statements have been prepared in accordance with Accounting Standards for Business Enterprises – Basic Standard and specific
accounting standards interpretations and other relevant provisions issued subsequently by the Ministry of Finance (the “MOF”) (collectively referred to
as “ASBEs”). In addition the financial statements also disclose relevant financial information in accordance with No.15 of Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public – General Provisions of Financial Reports.
2. Going concern
The financial statements have been prepared on a going concern basis.V. Material Accounting Policies and Significant Estimates
Tips of specific accounting policies and significant estimates:
The Company formulates specific accounting policies and accounting estimates according to the actual characteristics of its production and operation
which are mainly reflected in aspects such as the allowance for bad debts of accounts receivable the inventory valuation method the provision for
inventory write-downs the amortization of long-term prepaid expenses the depreciation of right-of-use assets the depreciation of fixed assets the
amortization of intangible assets share-based payments the impairment of goodwill and the recognition and measurement of revenues.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial positions of the Company as at 30 June 2025 and the financial performance and the
cash flows for the 2025 semi-annual then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Company is a calendar year i.e. from 1 January to 31 December of each year.
3. Operating cycle
The operating cycle of the Company is 12 months..
4. Functional currency
The Company’s functional and presentation currency is Renminbi (“RMB”). The currency unit is RMB Yuan unless otherwise stated.Each subsidiary joint venture or associate of the Company determines its own functional currency based on the primary economic environment in which
it operates. In preparation of the financial statements their functional currencies are translated into RMB.90
Section VIII Financial Report
5. Methodology for determining materiality standard and selection rationale
√Applicable □N/A
Items Materiality standard
Important individual accounts receivable with bad debt
RMB5 million
provisions
Recovery or reversal of significant bad debt provisions for
RMB5 million
accounts receivable
Write-off of important accounts receivable RMB5 million
Important prepayments aged over one year RMB5 million
Important accounts payable aged over one year RMB5 million
Important contract liabilities aged over one year RMB5 million
Important construction in progress The amount incurred or the balance at the end of the period exceeds RMB30 million
Important joint ventures or associates Long-term equity investment with closing balance exceeding 0.5% of total assets
Subsidiaries with non-controlling interests that are material to
Non-controlling interests with closing balance exceeding 2% of total assets
the Company
6. Accounting for business combinations involving entities under common control and business
combinations not involving entities under common control
Business combinations involving entities under common control: The assets and liabilities (including goodwill arising from the ultimate controlling
party’s acquisition of the entity being absorbed) that are obtained by the absorbing entity in a business combination involving entities under common
control shall be measured on the basis of their carrying amounts in the financial statements of the ultimate controlling party at the combination date. The
difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate
face value of shares issued as consideration) shall be adjusted against share capital premium under the capital reserves. If the share capital premium is not
sufficient to absorb the difference any excess shall be adjusted against retained earnings.Business combination not involving entities under common control: the cost of combination is the fair value of the assets paid liabilities incurred or
assumed and equity securities issued by the acquirer on the acquiring date for acquisition of the control of the acquiree. Where the cost of the
combination is higher than the interest in the fair value of the acquiree’s net identifiable assets goodwill is recognised. If the cost of the combination is
lower than the interest in the fair value of the net identifiable assets acquired the difference is recognised in profit or loss. The acquirer shall measure the
acquiree’s identifiable assets liabilities and contingent liabilities acquired in the business combination that meets the recognition criteria at their fair
values on the acquisition date.The directly related expenses incurred for the business combination are included in profit or loss; the transaction costs associated with the issue of equity
or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
7. The criteria of control and preparation of consolidated financial statements
* The criterion of control
The scope of the consolidated financial statements which include the financial statements of the Company and all of its subsidiaries is determined on the
basis of control. Control is achieved when the Company is exposed or has the following: (a) power over the investee; (b) exposure or rights to variable
returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of the investor’s returns.91
Section VIII Financial Report
* Consolidation procedures
The Company regards the whole enterprise group as an accounting entity and prepares consolidated financial statements in accordance with unified
accounting policies to reflect the overall financial position financial performance and cash flow of the enterprise group. The impact of internal
transactions between the Company and its subsidiaries and between the subsidiaries are offset. If the internal transaction indicates that impairment loss
has occurred to relevant assets such loss shall be recognised in full. If the accounting policies or the accounting period of a subsidiary are different from
those of the Company necessary adjustments are made based on the Company’s accounting policies or accounting period in preparing the consolidated
financial statements.The minority shareholders’ share of the subsidiary’s owners’ equity net profit or loss and current comprehensive income shall be separately listed under
the owners’ equity in the consolidated balance sheet under the net profit and total comprehensive income in the consolidated income statement. Where
the loss for the current period attributable to non-controlling interests of a subsidiary exceeds the non-controlling interests of the opening balance of
equity of the subsidiary the excess shall still be allocated against the non-controlling interests.
(2.1) Increase of subsidiaries or business
During the reporting period for subsidiaries or business acquired through business combinations involving entities under common control the financial
performance and cash flows of the entity from the beginning of the period in which the combination occurs to the end of the reporting period shall be
consolidated. Adjustments are made to the opening balance in the consolidated financial statements and related items in the comparative financial
statements as if the reporting entity after the combination had been in existence since the date the ultimate controlling party first obtained the control.If control over an invested entity under common control is achieved due to reasons such as additional investment for the equity investments held before
obtaining the control of the entity being absorbed the recognised relevant profit or loss other comprehensive income and other net asset changes from
the later of the date of obtaining the original equity and the date when both the absorbing entity and the entity being absorbed are under common control
up to the combination date shall be offset against the opening balance of retained earnings in the comparative financial statement period or the profit or
loss.During the reporting period if subsidiaries or business are increased due to business combination involving entities not under common control it shall 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 common control due to additional investment or other reasons the equity 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 as investment income in profit or loss. Other comprehensive income which can be reclassified into
profit or loss in the future and other changes in owners’ equity under the equity method as related to the acquiree’s equity held before the acquisition date
are converted to the investment income of the current period as of the acquisition date.
(2.2) Disposal of a subsidiary
* General disposal method
When the Company loses the control over the invested entity due to disposal of part of the equity investment or other reasons the residual equity
investment after the disposal shall be re-measured at its fair value on the date of losing control. The difference between the sum 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 assets of the original subsidiary
continuously calculated from the acquisition date or the combination date and the goodwill according to the original shareholding ratio shall be included
in the investment income in the period of loss of control. Other comprehensive income related to the equity investment of the original subsidiary that can
be reclassified into profit or loss in the future and other changes in owners’ equity under the equity method are converted to the investment income in the
period of loss of control.* Disposal of a subsidiary step by step
For disposal of the equity investment in the subsidiary by steps through multiple transactions till loss of the control the terms conditions and economic
impact of the disposal on each transaction in respect of the equity investment of the subsidiary are subject to one or more of the following circumstances
which generally indicate that the multiple transactions are package deals:92
Section VIII Financial Report
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 may not be economically viable when viewed in isolation but it becomes economically viable when considered together 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 and loss of the
control; the difference between the disposal price and the share of net assets of the subsidiary corresponding to the disposal of investment before the loss
of control is recognised as other comprehensive income in the consolidated financial statements and transferred to the profit or loss in the period of loss
of control.If each transaction does not belong to a package deal the equity investment of the subsidiary shall be subject to accounting treatment without loss of
control before losing the control; and accounting treatment shall be carried out in accordance with the general disposal method of the subsidiary when
losing the control.
(2.3) Acquisition of non-controlling interests in 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 be enjoyed and
continuously calculated from the acquisition date or combination date according to the increased shareholding ratio is adjusted against the share capital
premium in the capital reserve in the consolidated balance sheet; if the share capital premium in the capital reserve is not sufficient to offset the difference
the retained earnings shall be adjusted.
(2.4) Partial disposal of equity investment in subsidiaries without loss of control
The difference between the disposal price and the disposal of long-term equity investment and the share of the net assets to be enjoyed and continuously
calculated from the acquisition date or combination date is adjusted against the share capital premium in the capital reserve in the consolidated balance
sheet; if the share capital premium in the capital reserve is not sufficient to offset the difference the retained earnings shall be adjusted.
8. Classification of joint arrangements and accounting treatment for joint operations
9. Recognition criteria for cash and cash equivalents
Cash comprises the Company’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are shortterm highly liquid
investments that are readily convertible into known amounts of cash subject to an insignificant risk of changes in value.
10. Foreign currency transactions and foreign currency translation
* Foreign currency transactions
Foreign currency transaction adopts the spot exchange rate on the date of the transaction as the conversion exchange rate to convert the foreign currency
amount into RMB for reporting.At the balance sheet date the balance of monetary items measured in a foreign currency is converted by using the spot exchange rates at the balance sheet
date. Exchange differences arising therefrom are recognised in profit or 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.93
Section VIII Financial Report
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates on initial recognition and
the amount denominated in the functional currency is not changed. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value was measured. The resulting exchange differences are recognised in profit or loss or other
comprehensive income depending on the nature of the non-monetary items.* Conversion of financial statements denominated in foreign currencies
For foreign operations the Company translates their functional currency amounts into RMB when preparing the financial statements as follows: as at the
balance sheet date the assets and liabilities are translated using the spot exchange rates at the balance sheet date and equity items other than
“unappropriated profit” are translated at the spot exchange rates at the dates of transactions. Revenue and expense items in the income statement are
translated using the annual average exchange rate. he resulting exchange differences are recognised in other comprehensive income. On disposal of a
foreign operation the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss. If the disposal
only involves a portion of a particular foreign operation the component of other comprehensive income relating to that particular foreign operation is
recognised in profit or loss on a pro-rata basis.Foreign currency cash flows and the cash flows of foreign subsidiaries are translated using the weighted average exchange rates for the period during
which the cash flows occur (unless this is inappropriate due to exchange rate fluctuations in which case the spot exchange rates prevailing on the dates of
cash flows are used). The effect of exchange rate changes on cash is separately presented as an adjustment item in the statement of cash flows.
11. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.· Classification of financial instrument
Based on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them financial assets at initial
recognition are classified as: financial assets at amortised cost financial assets at fair value through other comprehensive income and financial assets at
fair value through profit or loss.The Company classifies financial assets as measured at amortised cost if they meet all of the following conditions and are not designated as at fair value
through profit or loss:
· The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows;
· The contractual cash flows consist solely of payments of principal and interest on the principal amount outstanding.The Company classifies financial assets as measured at fair value through other comprehensive income (debt instruments) if they meet all of the
following conditions and are not designated as at fair value through profit or loss:
· The financial asset is held within a business model with the objectives to collect contractual cash flows and sell the financial asset;
· The contractual cash flows consist solely of payments of principal and interest on the principal amount outstanding.For investments in equity instruments not held for trading the Company may at initial recognition irrevocably designate them as financial assets at fair
value through other comprehensive income (equity instruments). The designation is made on an individual investment basis and the underlying
investment meets the definition of an equity instrument from the issuer’s perspective.94
Section VIII Financial Report
Other than the financial assets measured at amortised cost and those measured at fair value through other comprehensive income as described above the
Company classifies all remaining financial assets as financial assets at fair value through profit or loss. On initial recognition if accounting mismatches
can be eliminated or significantly reduced the Company may irrevocably designate financial assets that would have been classified as measured at
amortised cost or at fair value through other comprehensive income as financial assets measured at fair value through profit or loss.The Company’s financial liabilities are on initial recognition classified into financial liabilities at fair value through profit or loss or financial liabilities
measured at amortised cost. A financial liability may be designated at initial recognition as at fair value through profit or loss if it meets any of the
following conditions:
· This designation eliminates or significantly reduces accounting mismatches.· Based on the enterprise risk management or investment strategy set forth in the formal written documents the portfolio of financial liabilities or the
portfolio of financial assets and financial liabilities is managed and evaluated on the basis of fair value and reported to key management personnel within
the enterprise on this basis.· The financial liabilities include embedded derivatives that need to be separated.
(2.1) Financial assets measured at the amortized cost
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 recognized amount; the
receivables excluding major financing components and the accounts receivable that the Company decides not to consider the financing components of
less than one year shall be initially measured at the contract transaction price. Interest calculated using the effective interest method during the holding
period is included in the current profit or loss. Upon recovery or disposal the difference between the price obtained and the book value of the financial
assets shall be recorded into the current profit or loss.
(2.2) Financial assets at fair value through other comprehensive income (debt investments)
Financial assets (debt instruments) measured at fair value through other comprehensive income includes receivables financing and other debt investments
which are initially measured at fair value with related transaction costs included in the initially recognised amount. Such financial assets are
subsequently measured at fair value and changes in fair value are included in other comprehensive income except for interest calculated using the
effective interest method impairment losses or gains and exchange losses or gains. On derecognition the accumulated gains or losses previously
recognised in other comprehensive income are transferred out and recognised in profit or loss.
(2.3) Financial assets at fair value through other comprehensive income (equity investments)
Financial assets measured at fair value through other comprehensive income (equity instruments) include other equity instrument investments which are
initially measured at fair value with related transaction costs included in the initially recognised amount. Such financial assets are subsequently measured
at fair value and changes in fair value are recognised in other comprehensive income. Dividends obtained are recognised in profit or loss. On
derecognition the accumulated gains or losses previously recognised in other comprehensive income are transferred out and recognised in retained
earnings.
(2.4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include trading financial assets derivative financial assets and other non-current financial assets which
are initially measured at fair value with related transaction costs included in profit or loss. Such financial assets are subsequently measured at fair value
and changes in fair value are recognised in profit or loss.95
Section VIII Financial Report
(2.5) Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities and derivative financial liabilities which are initially
measured at fair value with related transaction costs included in profit or loss. Such financial liabilities are subsequently measured at fair value and
changes in fair value are recognised in profit or loss. On derecognition the difference between the carrying amount and the consideration paid is
recognised in profit or loss.
(2.6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings notes payable accounts payable other payables longterm borrowings and
long-term payables which are initially measured at fair value with related transaction costs included in the initial recognition amount. Interest calculated
using the effective interest method during the holding period is included in the current profit or loss. On derecognition the difference between the
consideration paid and the carrying amount of the financial liability is recognised in profit or loss.· Recognition basis and measurement method for derecognition and transfer of financial assets
The Company derecognises financial assets when one of the following conditions is met:
· The contractual right to receive cash flows from the financial asset has been terminated;
· The financial asset has been transferred and substantially all the risks and rewards of the financial asset have been transferred to the transferee;
· The financial asset has been transferred and the Company neither transfers nor retains substantially all the risks and rewards of the financial asset but
does not retain control over the financial asset.Where the Company and its counterparty modify or renegotiate contractual terms in a manner that constitutes a substantial modification the original
financial asset is derecognised and a new financial asset is recognised based on the modified terms.When a financial asset is transferred if substantially all the risks and rewards of the financial asset are retained the financial asset is not derecognised.When determining whether the transfer of financial assets meets the above conditions for derecognition of financial assets the principle of substance over
form is adopted.The Company classifies transfers of financial assets into either full transfers or partial transfers. If the full transfer of a financial asset meets the
conditions for derecognition the difference between the following two amounts is included in profit and loss:
· The carrying amount of the transferred financial asset;
· The sum of the consideration received as a result of the transfer and the cumulative amount of changes in fair value originally recognised in owners’
equity (where the financial asset involved in the transfer is a financial asset measured at fair value through other comprehensive income (debt
instrument)).If the partial transfer of a financial asset meets the conditions for derecognition the carrying amount of the whole financial asset is allocated between the
part derecognised and the part not derecognised on the basis of their respective relative fair values and the difference between the following two amounts
is included in profit or loss:96
Section VIII Financial Report
· The carrying amount of the derecognised part;
· The sum of the consideration for the derecognised part and the amount corresponding to the derecognised part in the cumulative amount of changes in
fair value originally recognised in owners’ equity (where the financial asset involved in the transfer is a financial asset measured at fair value through
other comprehensive income (debt instrument)).If the transfer of a financial asset does not meet the conditions for derecognition the financial asset shall continue to be recognised and the consideration
received is recognised as a financial liability.· Derecognition of financial liabilities
A financial liability (or part thereof) is derecognised when the present obligation is discharged in whole or in part. If the Company enters into an
agreement with the creditor to replace an existing financial liability with a new financial liability under terms that are substantially different the existing
liability shall be derecognised and the new financial liability recognised simultaneously.When the terms of an existing financial liability are substantially modified in whole or in part the original financial liability (or the relevant part) shall be
derecognised and the modified liability shall be recognised as a new financial liability.When a financial liability is derecognised in whole or in part the difference between the carrying amount of the derecognised liability and the
consideration paid (including transferred non-cash assets or newly assumed financial liabilities) shall be recognised in profit or loss.If the Company repurchases part of a financial liability it shall allocate the carrying amount of the entire liability between the part continued to be
recognised and the part derecognised based on their relative fair values at the repurchase date. The difference between the carrying amount allocated to
the derecognised part and the consideration paid (including transferred non-cash assets or newly assumed financial liabilities) shall be recognised in profit
or loss.· Determination method of fair value for financial assets and financial liabilities
For financial instruments with an active market the fair value is determined based on quoted prices in the active market. For financial instruments
without an active market the fair value is determined using valuation techniques. For valuation the Company uses valuation techniques that are
appropriate under current circumstances and supported by sufficient available data and other information and selects inputs consistent with those that
market participants would consider in transactions of relevant asset or liability with priority given to relevant observable inputs. Unobservable inputs are
used only when relevant observable inputs are not available or their procurement is impracticable.· Testing and accounting methods for impairment of financial instruments
The Company accounts for impairment of financial assets measured at amortised cost financial assets measured at fair value through other
comprehensive income (debt instruments) and financial guarantee contracts based on expected credit losses (“ECLs”).The Company calculates the probability-weighted amount of the present value of the difference between the cash flows receivable under the contract and
the cash flows expected to be received taking into account reasonable and supportable information such as past events current conditions and forecasts
of future economic conditions with the risk of default as the weight and recognises ECLs.For receivables and contract assets arising from transactions defined in Accounting Standards for Business Enterprises No.14 – Revenue regardless of
whether they contain significant financing components the Company elects to apply the simplified approach to recognise a loss allowance based on
lifetime ECLs.97
Section VIII Financial Report
For lease receivables arising from transactions defined in Accounting Standards for Business Enterprises No. 21 – Leases the Company elects to apply
the simplified approach to recognise a loss allowance based on lifetime ECLs.For other financial assets than those under the simplified approach the Company assesses the changes in credit risk on the financial instruments since
initial recognition at each balance sheet date.The Company compares the risk of a default occurring as at the balance sheet date with the risk of a default as at the date of initial recognition to
determine relative changes in the risk of a default occurring of the financial instrument in the expected lifetime and assess whether the credit risk of the
financial instrument has increased significantly since initial recognition. Generally the Company considers that the credit risk of a financial instrument
has increased significantly when it is more than 30 days past due unless there is reasonable evidence demonstrating that the credit risk has not increased
significantly since initial recognition.If the credit risk has not increased significantly since initial recognition (stage 1) the loss allowance is measured at an amount equal to 12-month ECLs
by the Company and the interest income is calculated according to the carrying amount and the effective interest rate; if the credit risk has increased
significantly since initial recognition but are not credit-impaired (stage 2) the loss allowance is measured at an amount equal to lifetime ECLs by the
Company and the interest income is calculated according to the carrying amount and the effective interest rate; if such financial assets are credit-impaired
after initial recognition (stage 3) the loss allowance is measured at an amount equal to lifetime ECLs by the Company and the interest income is
calculated according to the amortised cost and the effective interest rate. If the credit risk of financial instruments is low at the balance sheet date the
Company assumes that the credit risk has not increased significantly since initial recognition.For financial assets at fair value through other comprehensive income (debt instruments) the loss allowance is recognised in other comprehensive income
and the impairment loss or gain is recognised in profit or loss without reducing the carrying amount of the financial assets presented in the balance sheet.If there is objective evidence that a receivable has been credit-impaired the Company makes an impairment provision for the receivable on an individual
basis.Except for the above receivables for which bad debt provision is made on an individual basis the Company classifies the remaining financial instruments
into several groups according to the credit risk characteristics and determines the ECLs on a group basis.For notes receivable and accounts receivable financing the Company recognises a loss allowance based on lifetime ECLs. Based on the credit risk
characteristics of notes receivable and accounts receivable financing they are classified into different groups:
Items Basis for grouping and method of provision for bad debts
Notes receivable:
For acceptors with high credit ratings (such as large state-owned commercial banks and listed joint-stock commercial
Bank acceptance bills banks) no bad debt provision is made; for acceptors that are other banks or financial companies ECLs are analysed based
on historical information to determine whether a bad debt provision is required.Commercial acceptance As the acceptors are a non-financial institutions the grouping is the same as that for accounts receivable (if the notes
bills receivable are transferred from accounts receivable the aging is calculated on a continuous basis)
Accounts receivable
nancing:
Bank acceptance bills If the acceptor is a bank with a higher credit rating no provision for bad debts is made.98
Section VIII Financial Report
The Company’s basis for grouping and method of provision for expected credit losses on notes receivable – commercial acceptance bills accounts
receivable and other receivables are as follows:
Items Group Basis
Accounts receivable:
Receivables from related parties within the No provision for bad debts is made for receivables within the scope of
scope of consolidation No credit risk group consolidation unless there is objective evidence that they cannot be recovered.The accounts receivable are grouped based on their aging as the credit risk
Due from other clients Aging group
characteristic.Advance payment
Advance payment to suppliers The advance payment are grouped based on their aging as the credit risk
Aging group
characteristic.Other receivables:
Receivables such as export tax rebates and The accounts receivable are grouped based on their nature as the credit risk
No credit risk group
housing funds have no credit risk characteristic (mainly including export tax rebates and housing funds).Other receivables from related parties No provision for bad debts is made for receivables within the scope of
No credit risk group
within the scope of consolidation consolidation unless there is objective evidence that they cannot be recovered.Balance percentage The accounts receivable are grouped based on their nature as the credit risk
Deposits and guarantee deposits
group characteristic (mainly including deposits and guarantee deposits)
The accounts receivable are grouped based on their aging as the credit risk
Other receivables Aging group
characteristic.Long-term receivables:
Balance percentage The finance lease receivables are grouped based on their nature of the receivables
Finance lease receivables
group as the credit risk characteristic.Balance percentage The accounts receivable are grouped based on their nature as the credit risk
Deposits and guarantee deposits
group characteristic (mainly including deposits and guarantee deposits)
Provision for bad debts of aging group:
Provision ratio for other
Aging Provision ratio for accounts receivables (%) Advance payment (%)
receivables (%)
Within 1 year inclusive 5.00 5.00
1-2 years 10.00 10.00
2-3 years 30.00 30.00 50.00
3-4 years 50.00 50.00 100.00
4-5 years 80.00 80.00 100.00
Over 5 years 100.00 100.00 100.00
The provision for doubtful accounts of commercial acceptance bills is calculated using the ECL rates applicable to the accounts receivable mentioned
above and the aging of such bills is determined retroactively from the original aging start date of the corresponding accounts receivable.The Company directly reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations of recovering a financial
asset in its entirety or a portion thereof.99
Section VIII Financial Report
12. Notes receivable
Please refer to “V. 11. Financial Instruments” for detailed information.
13. Accounts receivable
Please refer to “V. 11. Financial Instruments” for detailed information.
14. Receivables financing
Please refer to “V. 11. Financial Instruments” for detailed information.
15. Other receivables
Recognition method and accounting treatment method of the expected credit loss of other receivables
The impairment loss of other receivables (including other receivables long-term receivables etc.) other than accounts receivable and notes receivableshall be measured by referring to “Note V.11. Financial Instruments 6) Testing and accounting methods for impairment of financial instruments(excluding receivables)”.
16. Contract assets
The Company presents contract assets or contract liabilities depending on the relationship between the satisfaction of its performance obligations and the
customer’s payment in the balance sheet. The Company presents its right to consideration in exchange for goods or services as a contract asset (the right
to consideration is conditional on other factors excluding the passage of time). The Company’s unconditional (only conditional on the passage of time)
right to consideration from customers is presented separately as receivables. The Company presents its obligation to transfer goods or services to a
customer for which the Company has received consideration or the Company has a right to an amount of consideration that is unconditional (i.e. a
receivable) from the customer as a contract liability. The Company presents the net amount of the contract assets and contract liabilities under the same
contract.
17. Inventories
· Category and cost of inventories
Inventories are classified as: raw materials low-value consumables goods in stock work in progress shipped goods outsourced processing materials
packaging materials etc.Inventories are initially carried at cost which includes purchase cost processing cost and other expenses incurred to bring the inventories to their current
location and condition.· Valuation method of inventories shipped
For purchased finished products cost is determined under the moving weighted average method when they are sold and shipped; for self-manufactured
finished goods cost is determined under the standard cost method at the time of delivery with variances between actual cost and standard cost allocated
at period-end based on the inventory-to-sales ratio.100
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· Inventory system
The perpetual inventory system is adopted.· Amortisation method for low-value consumables and packaging materials
Low-value consumables are amortised at 50% upon initial use and 50% upon disposal; Packaging materials are amortised using the one-time write-off
method.· Recognition criteria and accrual method of provision for write-down of inventories
At the balance sheet date inventories shall be stated at the lower of cost and net realisable value. When the cost of inventories is higher than its net
realisable value a provision for write-down of inventories shall be made. Net realisable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes.For inventories directly used for sale such as finished goods goods in stock and materials for sale the net realisable value shall be determined in the
ordinary course of business at the estimated selling price less the estimated costs necessary to make the sale and relevant taxes; for inventories of
materials that need to be processed the net realisable value shall be determined in the ordinary course of production and operation at the estimated
selling price of finished goods less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes; for
inventories held for the execution of sales contracts or labour contracts the net realisable value is calculated based on the contract price and if the
quantity of inventories held is more than the quantity ordered in the sales contract the net realisable value of the excess part of inventories is calculated
based on the general sales price taking into account the market sales price and the estimated discount rate (if applicable).After the provision for provision for the write-down of inventory has been made if the factors that caused the write-down have ceased to exist resulting
in the net realizable value of the inventory exceeding its carrying amount the previously recognised provision for the write-down of inventory shall be
reversed within the original write-down amount. The reversal amount shall be recognised in profit or loss.
18. Financial assets held for trading
19. Debt investments
20. Other debt investments
21. Long-term receivables
Please refer to “V. 11. Financial Instruments” for detailed information.
22. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries joint ventures and associates.· Criteria for joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions about the relevant activities require the
unanimous consent of the parties sharing control. The investee is a joint venture of the Company if the Company and other parties jointly control the
investee and enjoy rights to the net assets of the investee101
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Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control with other
parties over those policies. The investee is an associate of the Company if the Company is able to exercise significant influence over the investee.· Determination of initial investment cost
· Long-term equity investments arising from a business combination
For a long-term equity investment in a subsidiary arising from a business combination involving enterprises under common control the initial investment
cost of the long-term equity investment shall be the share of the carrying amount of the owner’s equity in the acquiree in the consolidated financial
statements of the ultimate controlling party on the combination date. The difference between the initial investment cost of the long-term equity
investment and the carrying amount of the consideration paid shall be adjusted against capital premium under the capital reserves; if the capital premium
is not sufficient to absorb the difference any excess shall be adjusted against retained earnings. If the investee under common control can be controlled
due to additional investment and other reasons the difference between the initial investment cost of the long-term equity investment recognised
according to the above principles and the sum of the carrying amount of the long-term equity investment before the combination plus the carrying amount
of the new consideration paid for the further acquisition of shares on the combination date shall be adjusted against capital premium; if the capital
premium is not sufficient to absorb the difference any excess shall be adjusted against retained earnings.For a long-term equity investment in a subsidiary arising from a business combination not involving enterprises under common control the initial
investment cost of the long-term equity investment is the combination cost determined on the acquisition date. If the investee not under common control
can be controlled due to additional investment and other reasons the initial investment cost shall be the sum of the carrying amount of the equity
investment originally held and the new investment cost.· Long-term equity investments not arising from a business combination
For long-term equity investments acquired through cash payment the initial investment cost is determined based on the actual purchase price paid.For long-term equity investments acquired by issuing equity securities the initial investment cost shall be the fair value of the equity securities issued.· Long-term equity investment under the cost method
For a long-term equity investment where the Company can exercise control over the investee the long-term investment is accounted for using the cost
method in the Company’s individual financial statements. Control is achieved when the Company is exposed or has rights to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee.Under the cost method the long-term equity investment is measured at its initial investment cost. When additional investment is made or the investment
is recouped the cost of long-term equity investment is adjusted accordingly. Cash dividends or profit distributions declared by the investee are
recognised as investment income in profit or loss.· Long-term equity investment under the equity method
Long-term equity investments in associates and joint ventures are accounted for using the equity method. Where the initial investment cost of a long-term
equity investment exceeds the interest in the fair value of the investee’s identifiable net assets at the acquisition date no adjustment is made to the initial
investment cost; where the initial investment cost is less than the interest in the fair values of the investee’s identifiable net assets at the acquisition date
the difference is charged to profit or loss and the cost of the long-term equity investment is adjusted accordingly.The Company recognises its share of the investee’s profit or loss as well as its share of the investee’s other comprehensive income as investment income
or loss and other comprehensive income and adjusts the carrying amount of the investment accordingly; the carrying amount of the investment is
reduced based on the Company’s share of any profit distributions or cash dividends declared by the investee; the Company’s share of the investee’sequity changes other than those arising from the investee’s profit or loss other comprehensive income or profit distribution (“other changes in owners’equity”) is recognised in the Company’s equity and the carrying amount of the long-term equity investment is adjusted accordingly.102
Section VIII Financial Report
The Company recognises its share of the investee’s net profit or loss other comprehensive income and other changes in owners’ equity based on the fair
value of the investee’s identifiable assets at the acquisition date and recognises its share of the investee’s net profit and other comprehensive income after
making adjustments in accordance with the Company’s accounting policies and reporting periods.Unrealised profits and losses from transactions with its joint ventures and associates are eliminated to the extent of the Company’s investments in the
associates or joint ventures and investment income is recognised on this basis except where the assets invested or sold constitute a business. Any loss
arising from such transactions which are attributable to an impairment loss shall be recognised at its entirety.The Company’s share of losses of the associates or joint ventures is recognised to the extent that the carrying amount of the investment together with any
long-term interests that in substance form part of its net investment in the associates or joint ventures is reduced to zero except that the Company has the
obligations to assume further losses. For joint ventures or associates that subsequently report net profits the Company resumes recognition of its profit-
sharing amount after offsetting previously unrecognised loss allocations.· Disposal of long-term equity investments
For disposal of long-term equity investments the difference between the carrying amount and the actual acquisition price is included in profit and loss.The disposal of part of a long-term equity investment accounted for under the equity method where the remaining equity continues to be accounted for
under the equity method shall result in the other comprehensive income originally recognised under the equity method being carried forward on the same
basis as the investee’s direct disposal of the related assets or liabilities proportionally. Other changes in owners’ equity shall be proportionally carried
forward to profit or loss.When the disposal of equity investments results in the loss of joint control or significant influence over the investee the other comprehensive income
originally recognised under the equity method shall be accounted for on the same basis as the investee’s direct disposal of the related assets or liabilities
upon discontinuation of the equity method. All other changes in owners’ equity shall be fully transferred to profit or loss upon discontinuation of the
equity method.When the disposal of part of equity investments leads to loss of control over the investee in the preparation of individual financial statements: if the
Company can still exercise joint control or significant influence over the investee with the remaining equity the remaining equity shall be accounted for
using the equity method with retrospective adjustment as if the equity method had been applied since initial acquisition and the other comprehensive
income recognised before acquiring control shall be proportionally carried forward on the same basis as the investee’s direct disposal of related assets or
liabilities while other changes in owners’ equity recognised under the equity method shall be proportionally carried forward to profit or loss; if the
Company can no longer exercise joint control or significant influence over the investee with the remaining equity the remaining equity shall be
recognised as a financial asset with the difference between its fair value and carrying amount at the date of losing control recognised in profit or loss and
all other comprehensive income and other changes in owners’ equity recognised before acquiring control shall be fully carried forward.Where the disposal of an investment in a subsidiary through multiple transactions in steps until loss of control constitutes bundled transactions all such
transactions shall be accounted for as a single transaction involving the disposal of the subsidiary investment resulting in loss of control. In the individual
financial statements for each disposal before the loss of control the difference between the disposal consideration and the carrying amount of the part of
the long-term equity investment disposed of shall be initially recognised in other comprehensive income and subsequently carried forward in its entirety
to profit or loss when control is lost. If it does not constitute bundled transactions each transaction shall be accounted for separately.
23. Investment properties
Measurement model of investment properties
Cost method measurement
Depreciation or amortisation method103
Section VIII Financial Report
Investment properties are properties held to earn rentals or for capital appreciation or both such as buildings leased out (including buildings that are
constructed or developed for rental purposes after completion as well as buildings that are under construction or development and intended for future
rental use). An investment property is measured initially at cost. If the economic benefits relating to an investment property will probably flow in and the
cost can be reliably measured subsequent costs incurred for the property are included in the cost of the investment property. Otherwise subsequent costs
are recognised in profit or loss as incurred. The Company uses the cost model for the subsequent measurement of its investment properties. For
investment properties measured under the cost model the same depreciation policy as the Company’s fixed assets is applied to buildings for lease.
24. Fixed assets
(1) Recognition criteria
Fixed assets refer to tangible assets held for the purpose of producing goods providing services leasing or operating management and with a service life
of more than one accounting year. Fixed assets are recognised when both of the following conditions are met:
(1) The economic benefits associated with the asset will probably flow into the Company;
(2) The cost of the asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the impact of expected disposal expenses). The cost of a purchased fixed asset comprises
the purchase price relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use. Subsequent
expenditures related to fixed assets are recognised in the cost of fixed assets when it is probable that the economic benefits related thereto will flow in and
the cost can be measured reliably; the carrying amount of the component of the fixed asset that is replaced shall be derecognised; all other subsequent
expenditures are recognised in profit or loss as incurred.
(2) Depreciation method
Percentage of estimated Annual depreciation
Category Depreciation method Depreciation period
residual value rate
Buildings Straight-line method 10-40 years 5.00%-10.00% 2.25%- 9.50%
Machinery Straight-line method 5-12 years 5.00%-10.00% 6.00%-47.50%
Vehicles Straight-line method 3-10 years 5.00%-10.00% 9.00%-31.67%
Electronic equipment office
Straight-line method 2-10 years 5.00%-10.00% 9.00%-47.50%
equipment and others
Land ownership Others N/A N/A N/A
No provision for depreciation
25. Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes construction cost installation cost borrowing costs eligible for
capitalisation and other necessary expenditures incurred before the construction in progress reaches the working condition for its intended use. An item of
construction in progress is transferred to fixed assets when the asset is ready for its intended use and depreciation commences from the following month.104
Section VIII Financial Report
The criteria and timing for carrying forward construction in progress of the Company to fixed assets are as follows:
Category Criteria and timing for transfer to xed assets
(1) The main construction works and supporting works have been substantially completed; (2) the construction
project meets the predetermined design requirements and passes completion acceptance procedures conducted by
relevant parties including survey design construction supervision fire safety and quality inspection authorities;
Buildings
(3) for construction projects that have reached their working condition for intended use but have not completed
final settlement they shall be transferred to fixed assets at an estimated value based on the actual project cost
from the date when they reach the working condition for intended use.
(1) The relevant equipment and supporting facilities have been completely installed; (2) the equipment has been
debugged and can maintain normal and stable operation for a sustained period; (3) the production equipment is
Machinery
capable of consistently manufacturing qualified products over an extended duration; (4) the equipment has been
formally accepted by both asset management personnel and operational users.
(1) The relevant equipment and supporting facilities have been completely installed; (2) the equipment has been
Electronic equipment office
debugged to reach the working condition for intended use; (3) the equipment has been formally accepted by both
equipment and others
asset management personnel and operational users.
26. Borrowing costs
· Recognition principles for capitalization of borrowing costs
The borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are capitalised and recognised in asset
cost. The amounts of other borrowing costs incurred are recognised as an expense in the period in which they are incurred.Qualifying assets are fixed assets investment properties inventories and other assets that require a considerable period of time for acquisition
construction or production activities to reach their condition for intended use or sale.· Capitalisation period of borrowing costs
Capitalisation period refers to the period from the time point when the capitalisation of borrowing costs starts to the time point when the capitalisation of
borrowing costs ceases excluding the period when the capitalisation of borrowing costs is suspended.Borrowing costs are capitalised when all of the following conditions are met:
1. Expenditures on assets have been incurred including those in the form of cash payment non-cash assets transfer or interestbearing liabilities for the
acquisition construction or production of qualifying assets;
2. Borrowing costs have been incurred;
3. The activities that are necessary to acquire construct or produce the asset for its intended use or sale have been undertaken.
Capitalisation of borrowing costs ceases when the qualifying asset being acquired constructed or produced gets ready for its intended use or sale.105
Section VIII Financial Report
Capitalisation of borrowing costs is suspended during periods in which the acquisition construction or production of a qualifying asset is suspended
abnormally when the suspension is for a continuous period of more than 3 months. The borrowing costs shall continue to be capitalised if such
suspension constitutes a necessary procedure to prepare the qualifying asset being purchased constructed or produced for its intended use or sale.Borrowing costs incurred during these periods are recognised in profit or loss until the acquisition construction or production is resumed and the
borrowing costs continue to be capitalised.· Calculation of capitalisation rate and amount of borrowing costs
For specific borrowings for the acquisition and construction or production of qualifying assets the capitalisation amount of borrowing costs is the actual
borrowing costs incurred in the current period of the specific borrowings less the interest income from the unused borrowings deposited in banks or the
investment income from temporary investment.For general borrowings used for the acquisition and construction or production of qualifying assets the capitalisation amount of borrowing costs is
calculated by applying the capitalisation rate on the general borrowings to the weighted average of the excess of the cumulative expenditures on the asset
over the expenditures on the asset funded by the specific borrowings. The capitalisation rate is calculated based on the weighted average effective interest
rate of general borrowings.During the period of capitalisation the exchange difference between the principal and interest of specific borrowings in foreign currency is capitalised
and included in the cost of qualifying assets. Exchange differences arising from the principal and interest of foreign currency borrowings other than
specific borrowings in foreign currency are included in profit or loss.
27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Useful life and its determination basis estimation amortization method or review procedures
· Valuation of intangible assets
· Intangible assets are initially measured at cost when the Company obtains them;
The cost of purchased intangible assets includes the purchase price relevant taxes and other expenses directly attributable to the asset for its intended use.· Subsequent measurement
The service lives of intangible assets are assessed when the Company obtains them.For intangible assets with a finite useful life amortisation shall be carried out within the period during which they bring economic benefits to the
Company. If the period over which an intangible asset can bring economic benefits to the enterprise cannot be foreseen it shall be regarded as an
intangible asset with an indefinite useful life and shall not be amortised.106
Section VIII Financial Report
· Estimation of useful lives for intangible assets with finite useful lives
Items Expected useful life Determination basis of expected useful life
Land use rights 38-50 years The land use right certificate specifies the term of use
Software use rights 2-8 years Management expects the useful life
The trademark use right certificate specifies the benefit
Trademarks 5-10 years
period
The patent use right certificate specifies the benefit
Patents 5-10 years
period
Royalty 3 years Contractual useful life
Client relationships 10 years Management expects the useful life
(2) Classification of research and development expenditure and related accounting treatment
The Company’s research and development (R&D) expenditure include all costs directly related to R&D activities including employee compensation for
R&D personnel direct material inputs depreciation and amortisation expenses and other expenses. These costs are classified as follows: employee
compensation for R&D personnel includes salaries bonuses social insurance and housing fund contributions for employees directly engaged in R&D
activities; direct material inputs include raw and auxiliary materials directly consumed in R&D activities; depreciation and amortisation expenses cover
the depreciation of fixed assets and amortisation of intangible assets exclusively used for R&D; other expenses include travel costs testing expenses
consulting expenses and other expenses directly related to R&D activities.· Specific criteria for distinguishing between research phase and development phase
The Company classifies the expenditures on an internal research and development project into expenditure on the research phase and expenditure on the
development phase.Research phase: the phase involving original and planned investigation or research activities aimed at acquiring and comprehending new scientific or
technological knowledge.Development phase: the phase in which research findings or other knowledge are applied to a plan or design – prior to commercial production or use –
for the production of new or substantially improved materials devices products or other outputs.· Specific conditions for capitalisation of expenditure on development phase
Expenditure on the research phase is recognised in profit or loss as incurred. Expenditure on the development phase is recognised as intangible assets
when the Company can demonstrate all of the following or included in profit or loss if not:
· the technical feasibility of completing the intangible asset so that it will be available for use or sale;
· the intention to complete the intangible asset and use or sell it;
· how the intangible asset will generate probable future economic benefits (among other things the Company can demonstrate the existence of a market
for the output of the intangible asset or the intangible asset itself or if it is to be used internally the usefulness of the intangible asset);107
Section VIII Financial Report
· the availability of adequate technical financial and other resources to complete the development and the ability to use or sell the intangible asset; and
· the ability to measure reliably the expenditure attributable to the intangible asset during the development phase.When the research phase and the development phase cannot be distinguished the R&D expenditure is recognised in profit or loss when incurred.The company shall comply with the disclosure requirements of the “Medical Device Business” in the Self-Regulatory Guidelines for Listed Companies
on the Shenzhen Stock Exchange No. 4 – Industry Information Disclosure of the Growth Enterprise Market
30. Impairment of long-term assets
Impairment of assets other than inventories deferred tax assets and financial assets is determined in the following way: the Company assesses at the
balance sheet date whether there is any indication that an asset may be impaired; if any indication exists that an asset may be impaired the Company
estimates the recoverable amount of the asset and performs impairment testing; goodwill arising from a business combination intangible assets with
indefinite useful lives and intangible assets not yet available for use are tested for impairment at least at each year end irrespective of whether there is
any indication that the asset may be impaired.The recoverable amount is determined based on the higher of the net amount of the fair value of the asset less the disposal expenses and the present value
of the expected future cash flows of the asset. The Company estimates the recoverable amount on an individual basis unless it is not possible to estimate
the recoverable amount of the individual asset in which case the recoverable amount is determined for the asset group to which the asset belongs.Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from
other assets or asset groups.When the recoverable amount of an asset or asset group is less than its carrying amount the carrying amount is reduced to the recoverable amount by the
Company. The reduction in the carrying amount is treated as an impairment loss and recognised in profit or loss. A provision for impairment loss of the
asset is recognised accordingly.For the purpose of impairment testing of goodwill the carrying amount of goodwill is allocated to the relevant asset group from the acquisition date on a
reasonable basis. Each of the related asset groups or sets of asset groups is an asset group or a set of asset groups that is expected to benefit from the
synergies of the business combination and shall not be larger than an operating segment as determined by the Company. The carrying amount of the
related asset group (set of asset groups) to which goodwill has been allocated for impairment is compared to its recoverable amount. If the carrying
amount of the asset group (set of asset groups) is higher than its recoverable amount the amount of the impairment loss is firstly allocated to reduce the
carrying amount of the goodwill allocated to the asset group (set of asset groups) and then allocated to reduce the carrying amount of other assets (other
than the goodwill) within the asset group (set of asset groups) on a pro-rata basis of the carrying amount of each asset.Once the above impairment loss is recognised it cannot be reversed in subsequent accounting periods.
31. Long-term prepaid expenses
Long-term prepaid expenses refer to costs that have already been incurred but should be allocated over the current and future periods with an
amortisation period exceeding one year. Long-term prepaid expenses are amortised using the straight-line method over the benefit period. The
amortisation period is as follows:
Items Amortisation period
Decoration expenses 1-10 years
Decoration expenses on leased assets 1-6 years
Others 2-5 years108
Section VIII Financial Report
32. Contract liabilities
The Company presents contract assets or contract liabilities depending on the relationship between the satisfaction of its performance obligations and the
customer’s payment in the balance sheet. The Company presents its obligation to transfer goods or services to a customer for which the Company has
received or should have received consideration from the customer as a contract liability. The Company presents the net amount of the contract assets and
contract liabilities under the same contract.
33. Employee benefits
(1) Accounting for short-term employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Company in exchange for services rendered by employees or for
termination of employment. Employee benefits include short-term employee benefits post-employment benefits termination benefits and other long-
term employee benefits.· Accounting for short-term employee benefits
Occurred short-term employee benefits are recognised as a liability in the accounting period in which an employee provides services with a
corresponding charge to profit or loss or cost of an asset.For the social insurance premium and housing fund paid by the Company for employees as well as the union running costs and employee education
expenditure provided according to the regulations the corresponding employee benefit amount is calculated according to the stipulated accrual basis and
accrual ratio during the accounting period when employees provide services to the Company.The employee benefit expenses incurred by the Company are included in profit or loss or related asset costs according to the actual amount as they are
incurred. Non-monetary benefits are measured at fair value.
(2) Accounting for post-employment benefits
· Defined contribution plan
The Company contributes to the basic pension insurance and unemployment insurance for its employees in accordance with the relevant regulations of
the local government. During the accounting period when employees provide services to the Company the payable amount calculated based on the local
contribution base and proportion is recognised as a liability and recorded in profit or loss or the cost of related assets.· Defined benefit plan
The Company attributes the benefit obligations arising from defined benefit plans to the periods during which employees provide services using the
formula determined using the projected unit credit method with corresponding amounts recognised in profit or loss or capitalised into the cost of related
assets.The deficit or surplus arising from the present value of the defined benefit obligation less the fair value of plan assets is recognised as a net defined
benefit liability or asset. For defined benefit plans in a surplus position the Company measures the net defined benefit asset at the lower of the surplus in
the plan and the asset ceiling.All defined benefit obligations including those expected to be settled within twelve months after the end of the annual reporting period in which
employees render services are discounted using market yields on high-quality corporate bonds (or government bonds) that are denominated in the same
currency and have terms to maturity matching the defined benefit obligation as at the balance sheet date.109
Section VIII Financial Report
The service cost arising from defined benefit plans and the net interest on the net defined benefit liability (asset) are recognised in profit or loss or
capitalised into the cost of related assets. Changes from the remeasurement of the net defined benefit liability (asset) are recognised in other
comprehensive income and will not be subsequently reclassified to profit or loss. Upon termination of the original defined benefit plan the cumulative
amount previously recognised in other comprehensive income shall be fully transferred to retained earnings within equity.Upon settlement of a defined benefit plan a settlement gain or loss is recognised based on the difference between the present value of the defined benefit
obligation and the settlement price both determined as at the settlement date.
(3) Accounting for termination benefits
The Company provides termination benefits to employees and recognises an employee benefits liability for termination benefits with a corresponding
charge to profit or loss at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits resulting from an
employment termination plan or a curtailment proposal; and (b) when the Company recognises costs involving the payment of termination benefits.
(4) Accounting for benefits of other long-term employees
34. Provisions
An obligation related to a contingency shall be recognised by the Company as a provision when the following conditions are met except for contingent
considerations and contingent liabilities assumed in a business combination not involving entities under common control.· The obligation is a present obligation of the Company;
· The fulfilment of the obligation is likely to result in an outflow of economic benefits from the Company;
· The amount of the obligation can be measured reliably.A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation taking into account factors
pertaining to a contingency such as the risks uncertainties and time value of money as a whole. Where the time value of money has a significant impact
the best estimate is determined by discounting the relevant future cash outflows..Where the required expenditures fall within a continuous range and all possible outcomes within that range are equally probable the best estimate is
determined as the midpoint of the range. In all other cases the best estimate is determined as follows:
· For contingent matters involving a single item the best estimate shall be determined based on the most likely outcome.· For contingent matters involving multiple items the best estimate shall be determined by weighting all possible outcomes by their associated
probabilities.Where all or part of the expenditures required to settle a provision are expected to be reimbursed by a third party the reimbursement shall be recognised
as a separate asset when it is virtually certain to be received. The amount recognised shall not exceed the carrying amount of the provision.The Company reviews the carrying amount of provisions at the balance sheet date. Where conclusive evidence indicates that the carrying amount no
longer reflects the current best estimate the carrying amount shall be adjusted to the current best estimate.110
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35. Share-based payment
The Company’s share-based payment transactions represent agreements to grant equity instruments or incur liabilities measured based on equity
instruments in exchange for services received from employees or other parties. The Company’s share-based payment arrangements are equity-settled
share-based payments.Equity-settled share-based payments and equity instruments
An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity instruments granted
to the employees. If such equity-settled share-based payment could vest immediately related costs or expenses at an amount equal to the fair value on the
grant date are recognised with a corresponding increase in capital reserves. If such equitysettled share-based payment could not vest until the completion
of services for a vesting period or until the satisfaction of a specified performance condition at each balance sheet date during the vesting period the
Company recognises the services received for the current period as related costs and expenses with a corresponding increase in capital reserves at an
amount equal to the fair value of the equity instruments at the grant date based on the best estimate of the number of equity instruments expected to vest.The fair value is determined using the Black-Scholes option pricing model as described in Note XV.2.Where the terms of an equity-settled share-based award are modified as a minimum an expense is recognised as if the terms had not been modified. In
addition an expense is recognised for any modification that increases the total fair value of the share-based payments or is otherwise beneficial to the
employee as measured at the date of modification.If the granted equity instruments are cancelled during the vesting period the Company shall treat such cancellation as an accelerated vesting. The amount
that would have been recognised over the remaining vesting period shall be immediately recognised in profit or loss with a corresponding adjustment to
capital reserve. However if a new award is substituted for the cancelled award and is designated as a replacement on the date that it is granted the
cancelled and new awards are treated as if they were a modification of the original award.
36. Preference shares perpetual bonds and other financial instruments
37. Revenue
Accounting policies for income recognition and measurement
The Company has fulfilled its performance obligations in the contracts that is when the customer obtains control of relevant goods or services. Control
of relevant goods or services refers to the ability to direct the use of the goods or the provision of the services and obtain substantially all of the
remaining benefits from the goods or services.If the contract contains two or more performance obligations the Company shall on the commencement date of the contract allocate the transaction
price to each individual performance obligation in proportion to the stand-alone selling price of the goods or services promised by such obligation. The
Company’s revenue shall be measured according to the transaction price allocated 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 or services to the
customer excluding payments collected on behalf of third parties and amounts expected to be returned to the customer. The Company determines the
transaction price based on the terms of the contract and its past practices and in determining the transaction price it takes into account the impact of
variable consideration significant financing component in the contract noncash consideration consideration payable to customers and other factors. The
Company determines the transaction price including the variable consideration only to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. When
the contract contains a significant financing component the Company determines the transaction price based on an amount that reflects the price that a
customer would have paid for the goods or services in cash at the time of obtaining the control of the goods or services and amortises the difference
between the transaction price and the consideration promised in the contract under the effective interest method within the contract period.If one of the following conditions is satisfied it shall be deemed to have performed its performance obligation over time; otherwise it shall be deemed to
have performed its performance obligation at a point in time:111
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· The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs.· 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 has an enforceable right to payment for
performance completed to date.For the performance obligations performed over time the Company recognises the revenue in accordance with the performance progress during that
period except where the performance progress cannot be reasonably measured. Taking into account the nature of the goods or services the Company
uses the output or input method to determine the performance progress. If the progress towards the complete satisfaction of the performance obligation
cannot be reasonably measured but the Company expects to recover the costs incurred in satisfying the performance obligation the revenue is recognised
only to extent of the costs incurred until such time that the Company can reasonably measure the progress towards the complete satisfaction of the
performance obligation.For performance obligations performed at a point in time the Company recognises revenue at the point in time when the customer acquires control of the
relevant goods or services. In determining whether the customer has acquired control of goods or services the Company considers the following
indications:
· The Company has the present right to payment for the goods or services that is the customer is presently obliged to pay for the goods or services.· The Company has transferred the legal ownership of the goods to the customer that is the customer has the 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 significant risks and rewards of ownership of the goods to the customer that is the customer has acquired the
significant risks and rewards of ownership of the goods.· The customer has accepted the goods or services etc.Businesses of the same category under different operating models involve varying revenue recognition approaches and measurement methods
The Company determines its role as principal or agent in transactions based on whether it exercises control over the goods or services before transferring
them to the customer. If the Company has control over the goods or services prior to transfer it acts as the principal and recognises revenue based on the
total consideration received or receivable. Conversely if the Company lacks control over the goods or services before transfer it acts as the agent and
recognises revenue in the form of commissions or fees according to expectations.Specific principles for recognition of revenue from sale of goods:
· General foreign sales: revenue is recognised after commodity inspection customs declaration and shipment of goods (the Company mainly adopts FOB
and CIF methods for export revenue settlement. For a very small amount of revenue using other settlement methods such as for those adopting EXW
terms the buyer designates carrier door-to-door delivery as the timing of recognition of revenue; for those adopting FCA terms the delivery of products
to the carrier designated by the buyer shall be the timing of recognition of revenue; for those adopting the DDP/DDU terms the delivery of products to
the destination designated by the buyer shall be the timing of recognition of revenue).· General domestic sales: the timing of recognition of sales revenue is based on the customer’s confirmation of receipt (i.e. the revenue is recognised
after the customer signs for the receipt but if the contract stipulates that acceptance is needed the revenue will be recognised after acceptance by the
customer).· E-commerce business (B2C): the timing of recognition of sales revenue is based on the customer’s confirmation of the completion of the transaction
(i.e. the revenue is recognised when the customer initiatively confirms receipt of the goods on the e-commerce platform or when the e-commerce
platform automatically confirms receipt of the goods within a certain period of time after delivery whichever is earlier).112
Section VIII Financial Report
· E-commerce business (B2B): the revenue is recognised in the settlement cycle at the point in time when control of the product is transferred.· Store sales model: sales revenue is recognised according to settlement time and price (i.e. the revenue is recognised after the store salesperson receives
payment and delivers the goods to the customer).· Consignment model: the Company delivers the goods to the place designated by the agent and recognises the revenue after checking the sales list
received by the deadline of reconciliation agreed in the contract.Variable consideration
Some of the Company’s contracts with customers including arrangements of sales rebates result in variable consideration. The Company determines the
best estimate of variable consideration by using the expected value method or the most likely amount method. However the transaction price including
variable consideration is only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not
occur when the uncertainty associated with the variable consideration is subsequently resolved.Additional purchase options
The Company grants customers with loyalty points upon the sale of the goods which can be redeemed by the customers for free or discounted goods or
services. The loyalty points give rise to a separate performance obligation as they provide a material right to customers. The Company determines the
stand-alone selling prices for loyalty points based on the redemption policy and expected redemption rate. A portion of the transaction price is allocated
to the loyalty points awarded to the customer in proportion to the standalone selling price of the goods and the loyalty points. Revenue is recognised
when the customer obtains control of the goods or services redeemed with loyalty points or when the loyalty points expire.Sale with a right of return
For sale with a right of return the Company recognises the revenue in the amount of consideration to which the Company expects to be entitled in
exchange for transferring control of the goods to the customer and recognises the amount expected to be refunded as a result of the sales return as a
refund liability. At the same time an asset recognised for an entity’s right to recover goods from a customer on settling a refund liability is measured by
reference to the carrying amount of the goods less any expected costs to recover the goods (including potential decreases in the value of the returned
goods) that is right-of-return assets and cost of sales is recognised based on the carrying amount of the transferred goods at the time of transfer of the
goods less the net cost of the asset above. At each balance sheet date the Company re-estimates the future sales return and remeasures the asset and
liability above.Warranties provisions
The Company provides warranties in connection with the sale of goods in accordance with the contract and the relevant laws and regulations etc. For an
assurance-type warranty that provides a customer with the assurance that the good complies with agreedupon specifications the Company accounts for
the warranty in accordance with “Note V.34 Provisions”.
38. Contract costs
39. Government grants
· Types of government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to the Company at no consideration. If a government
grant is in the form of a transfer of a monetary asset it is measured at the amount received or receivable. If a government grant is in the form of a transfer
of a non-monetary asset it is measured at fair value; if fair value is not reliably determinable it is measured at a nominal amount.Government grants are classified into government grants related to assets and government grants related to income. Government grants related to assets
are government grants made available to the Company for the purpose of purchasing constructing or otherwise acquiring long-term assets. Government
grants related to income are government grants other than those related to assets.113
Section VIII Financial Report
The Company’s criteria for classifying government grants as related to assets are: the governmental documents clearly stipulate the use of funds and the
expected use direction of the funds is expected to form related assets; The criteria for classifying government grants as related to income are: the
governmental documents do not stipulate the use purpose and the expected use direction of the funds is to supplement working capital; If the grant object
is not clearly specified in the governmental documents the judgement basis for the Company to classify the government grants as related to assets or
related to income is as follows: except that the Company designates its purpose as related to assets it will be included in profit or loss.· Timing of recognition
Government grants are recognised when all attaching conditions will be complied with and the grants will be received.· Accounting treatment
A government grant relating to an asset shall be offset against the carrying amounts of relevant assets or recognised as deferred income and amortised
into profit or loss over the useful life of the related assets using a reasonable and systematic method (those relating to the daily activities of the Company
shall be recorded into other income; those not relating to the daily activities of the Company shall be included in non-operating income). However
government grants measured at nominal amount are directly included in profit or loss. Where the assets are sold transferred retired or damaged before
the end of their useful lives the rest of the remaining deferred income is released to profit or loss for the period in which the relevant assets are disposed
of.A government grant related to income is accounted for as follows: (a) if the grant is a compensation for related expenses or losses to be incurred in
subsequent periods it is recognised as deferred income and released in profit or loss (those relating to the daily activities of the Company shall be
recorded into other income; those not relating to the daily activities of the Company shall be included in non-operating income) or offset against related
expenses or losses over the periods in which the related expense or losses are recognised; or (b) if the grant is a compensation for related expenses or
losses already incurred it is recognised immediately in profit or loss (those relating to the daily activities of the Company shall be recorded into other
income; those not relating to the daily activities of the Company shall be included in non-operating income) or offset against related expenses or losses.
40. Deferred tax assets/Deferred tax liabilities
Income tax comprises current and deferred tax. Except for the income tax arising from the business combination and the transaction or item directly
booked into equity (including other comprehensive income) the Company records the current and deferred tax into profit or loss.Deferred tax is provided using the balance sheet liability method on all temporary differences at the balance sheet date between the tax bases of assets
and liabilities and their carrying amounts and on the temporary differences between the tax bases and the carrying amounts of the items which have a tax
base according to related tax laws but are not recognised as assets and liabilities.Deferred tax liabilities are recognised for all taxable temporary differences except:
· when the taxable temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and at
the time of the transaction affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary
differences; and
· in respect of taxable temporary differences associated with investments in subsidiaries associates and joint ventures when the timing of the reversal of
the temporary differences can be controlled and it is probable that the temporary differences will not be reversed in the foreseeable future.Deferred tax assets are recognised for all deductible temporary differences and the carryforward of unused tax losses and any unused tax credits.Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences
the carryforward of unused tax losses and unused tax credits can be utilised except:114
Section VIII Financial Report
· when the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination
and at the time of the transaction affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible
temporary differences; and
· in respect of the deductible temporary differences associated with investments in subsidiaries associates and joint ventures it is probable that the
temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be
utilised in the future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled in accordance with the requirements of tax laws. The measurement of deferred tax assets and liabilities reflects the tax
consequences that would follow from the manner in which the Company expects at the balance sheet date to recover the assets or settle the liabilities.The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available in future periods to allow the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the
balance sheet date and are recognised to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be recovered.Deferred tax assets and deferred tax liabilities are offset if and only if the Company has a legally enforceable right to set off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis or to realise the assets and settle the
liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
41. Leases
(1) Lease accounting for lessees
A 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 in exchange for consideration.The Company recognises lease liabilities and right-of-use assets except for short-term leases and leases of low-value assets.The Company assesses at contract inception whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration.For a contract that contains multiple separate lease components the Company separates the components of the contract and accounts for each separate
lease component. For a contract that contains lease and non-lease components the lessee and the lessor separate lease components from non-lease
components.
(1) Right-of-use assets
At the commencement date of the lease the Company recognises a right-of-use asset. Right-of-use assets are initially measured at cost. The cost of the
right-of-use assets comprises:
(1) the amount of the initial measurement of the lease liability;
(2) any lease payments made at or before the commencement date of the lease less any lease incentives received if there are lease incentives;
(3) any initial direct cost incurred;115
Section VIII Financial Report
(4) and estimates of costs incurred by the lessee in dismantling and removing the underlying assets restoring the site on which it is located or restoring
the underlying asset to the condition required by the terms and conditions of the lease excluding the costs incurred for producing the inventories.The Company remeasures the lease liabilities for the revision to the lease payments and adjusts the carrying amount of the right-of-use assets accordingly.The right-of-use assets are depreciated on a straight-line basis subsequently by the Company. If the Company is reasonably certain that the ownership of
the underlying assets will be transferred to the Company at the end of the lease terms the Company depreciates the assets from the commencement date
to the end of the useful lives of the assets. Otherwise the Company depreciates the assets from the commencement date to the earlier of the end of the
useful lives of the assets and the end of the lease terms.The Company determines whether the right-of-use asset has been impaired in accordance with the principles described in “Note V.30 Impairment oflong-term assets” and accounts for the impairment losses identified.
(2) Lease liabilities
At the commencement date of the lease the Company recognises lease liabilities except for short-term leases and leases of low-value assets. Lease
liabilities are measured at the present value of the lease payments that are not paid at that date. The lease payments include:
(1) fixed payments (including in-substance fixed payments) less any lease incentives receivable.
(2) variable lease payments that depend on an index or a rate;
(3) amounts expected to be paid under residual value guarantees;
(4) the exercise price of a purchase option reasonably certain to be exercised by the Company; and
(5) payments of penalties for termination of a lease if the lease term reflects the Company exercising the option to terminate the lease.
The Company regards the interest rate implicit in the lease as discount rate; if that rate cannot be reasonably determined the Company uses the
incremental borrowing rate. The Company calculates the interest expenses of the lease liability in each period over the lease term using the constant
periodic rate of interest and recognises such interest expenses in profit or loss or the costs of the related asset.Variable lease payments that are not included in the measurement of the lease liabilities are recognised in profit or loss as incurred except those in the
costs of the related assets as required.At the commencement date of the lease in the following cases the Company remeasures the lease liability and adjusts the correspondingly right-of-use
asset. However if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability
the Company recognises any differences in profit or loss.
(1) if there are changes in the assessment of the purchase option the renewal option or the option to terminate the lease or the exercise of the above-
mentioned options is not consistent with the original assessment results the Company remeasures lease liabilities at the lease payments upon the change
and the present value calculated using the revised discount rate.
(2) if there are changes in in-substance fixed payments the amounts expected to be payable under residual value guarantees or in the index or rate used
to determine lease payments the Company remeasures lease liabilities at the lease payments upon the change and the present value calculated using the
original discount rate. However where changes in lease payments result from changes in floating interest rates the present value is calculated using the
revised discount rate.116
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(3) Short-term leases and leases of low-value assets
If the Company does not recognise the right-of-use assets and lease liabilities for short-term leases and low-value assets it recognises relevant lease
payments in profit or loss or the costs of the related assets on a straight-line basis over the lease terms. A short-term lease is the lease that on the
commencement date of the lease has a lease term of 12 months or less and does not contain any purchase option. A lease of low-value assets is the lease
of the individual underlying asset with low value when new. If the Company subleases an asset or expects to sublease an asset the head lease does not
qualify as a lease of a low-value asset.
(4) Lease modifications
The Company accounts for a lease modification as a separate lease if both:
(1) the modification increases the scope of the lease by adding the right to use one or more underlying assets; and
(2) the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate
adjustments to that stand-alone price to reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of the lease modification the Company reallocates the
consideration in the contract after the modification redetermines the lease term remeasures the lease liability by discounting the revised lease payments
using a revised discount rate.The Company decreases the carrying amount of the right-of-use asset for lease modifications that reduce the scope or term of the lease and recognises
the gain or loss relating to the partial or full termination of the lease in profit or loss. The Company makes a corresponding adjustment to the right-of-use
asset for all other lease modifications that result in remeasurement of lease liabilities.
(2) Lease accounting for lessors
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset except that a
lease is classified as an operating lease at the inception date.Rental income under an operating lease is recognised on a straight-line basis over the lease term through profit or loss. Variable lease payments that are
not included in the measurement of lease receivables are charged to profit or loss as incurred. Initial direct costs are capitalised and recognised over the
lease term on the same basis as rental income through profit or loss.At the commencement date of the lease the Company recognises finance lease receivable and derecognises finance lease assets. The Company presents
the lease receivables at an amount equal to the net investment in the lease for the initial measurement. The net investment in the lease is the sum of any
unguaranteed residual value accruing to the lessor and the lease payments receivable at the commencement date of the lease by a lessor under a finance
lease discounted at the interest rate implicit in the lease. The Company recognises finance income over the lease term based on a pattern reflecting a
constant periodic rate of return on the net investment in the lease. Variable lease payments received by the Company that are not included in the
measurement of the net investment in the lease are recognised in profit or loss as incurred.
42. Other material accounting policies and significant estimates
1. Share repurchase
If the Company repurchases its shares due to a reduction in its registered capital it shall debit the “Treasury shares” and credit the “Cash at banks” and
other accounts according to the amount actually paid. When the treasury shares are cancelled the total par value of the shares calculated according to the
par value of the shares and the number of cancelled shares shall be debited to the “Share capital” and the book balance of the cancelled treasury shares
shall be credited to the “Treasury shares”. The premium originally recorded in capital surplus at the time of stock issuance shall be offset according to the
difference and debited to the “Capital surplus – Share capital premium”. The portion of the repurchase price exceeding the above offset of “Share capital”
and “Capital surplus – Share capital premium” shall be debited to the “Surplus reserves” and “Profit distribution – Undistributed profits” and other
accounts in turn. If the repurchase price is lower than the share capital corresponding to the repurchased shares the difference between the book balance
of the cancelled treasury shares and the offset share capital will be treated as an increase in share capital premium and debited to the “Share capital”
according to the par value of the share capital corresponding to the repurchased shares credited to the “Treasury share” according to the book balance of
the cancelled treasury shares and credited to the “Capital surplus – Share capital premium” according to the difference.117
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2. Fair value measurement
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on
the lowest level input that is significant to the fair value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for
identical assets or liabilities; Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is
observable either directly or indirectly; Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.For assets and liabilities that are measured at fair value in the financial statements on a recurring basis the Company determines whether transfers have
occurred between levels in the hierarchy by reassessing categorisation at each balance sheet date.
3. Significant accounting judgements and estimates
The preparation of the financial statements requires management to make judgements estimates and assumptions that affect the reported amounts of
revenue expenses assets and liabilities and their accompanying disclosures and the disclosure of contingent liabilities at the balance sheet date.Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets
or liabilities affected in the future.
(1) Judgments
In the process of applying the Company’s accounting policies management has made the following judgements which have a significant effect on the
amounts recognised in the financial statements:
Business models
The classification of financial assets at initial recognition depends on the Company’s business model for managing financial assets. When determining
the business model the Company considers the methods to include evaluation and report financial asset performance to key management the risks
affecting the performance of financial assets and risk management and the manner in which the relevant management receives remuneration. When
assessing whether the objective is to collect contractual cash flows the Company needs to analyse and judge the reason timing frequency and value of
the sale before the maturity date of the financial assets.Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the future accounting periods are described below.Impairment of financial assets
The Company uses the expected credit loss model to assess the impairment of financial instruments. The Company is required to perform significant
judgement and estimation and take into account all reasonable and supportable information including forward-looking information. When making such
judgements and estimates the Company infers the expected changes in the debtor’s credit risk based on historical repayment data combined with
economic policies macroeconomic indicators industry risks and other factors. The different estimates may impact the impairment assessment and the
impairment allowance may not be representative of the actual impairment loss in the future.Variable consideration for sales rebates or returns
The Company makes reasonable estimates of indicators such as the rebate rate or return rate of a group of contracts with similar characteristics according
to the sales historical data the current sales situation as well as changes of customer demands market changes and other relevant information. Estimates
of the rebate rate or return rate may not be representative of the actual rebates or returns in the future. The Company re-evaluates the rebate rate or return
rate at least on each balance sheet date and updates the accounting treatment based on the re-evaluated rebate rate or return rate.118
Section VIII Financial Report
Loyalty points
The Company makes reasonable estimate of the stand-alone selling price of the loyalty points for contract consideration allocation by taking into account
all relevant information such as the stand-alone selling prices for the customer to acquire additional free goods or services or the discounts enjoyed by
the customer using the loyalty points and the possibility for the customer to exercise the redemption right. The Company considers the likelihood for the
customer to exercise the redemption right based on the historical data of point redemption the current point redemption and the future changes of
customer demands the future trend of the market and other factors. The Company re-evaluates the estimated redemption rate of loyalty points at least on
each balance sheet date and calculates the amounts of revenue and balance that should be recognised for considerations related to loyalty points based on
the reevaluation results.Impairment of non-current assets other than financial assets (other than goodwill)
The Company assesses whether there are any indications of impairment for all non-current assets other than financial assets at the balance sheet date.Other non-current assets other than financial assets are tested for impairment when there are indications that the carrying amounts may not be recoverable.An impairment exists when the carrying amount of an asset or asset group exceeds its recoverable amount which is the higher of its fair value less costs
of disposal and the present value of the future cash flows expected to be derived from it. The calculation of the fair value less costs of disposal is based on
available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for
disposing of the assets. When the calculations of the present value of the future cash flows expected to be derived from an asset or asset group are
undertaken management must estimate the expected future cash flows from the asset or asset group and choose a suitable discount rate in order to
calculate the present value of those cash flows.Share-based payment
The Company’s equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity
instruments granted to the employees. If such equity-settled share-based payment could vest immediately related costs or expenses at an amount equal to
the fair value on the grant date are recognised with a corresponding increase in capital reserves. If such equity-settled share-based payment could not vest
until the completion of services for a vesting period or until the satisfaction of a specified performance condition at each balance sheet date during the
vesting period the Company adjusts related costs and expenses for the services received for the current period with a corresponding increase in capital
reserves based on the best estimate of the number of equity instruments expected to vest.Inventory write-downs set aside at the net realisable value
The Company writes down obsolete and slow-moving inventories and inventories whose cost is higher than the net realisable value. At each balance
sheet date the Company re-estimates whether the individual inventory categories are obsolete and slow-moving and whether the net realisable value is
lower than the inventory cost. A difference between the re-estimation result and the existing estimate will affect the carrying amount of the inventory in
the period of change in estimate.Impairment of goodwill
The Company determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the present value of the future cash
flows expected to be derived from the asset groups (sets of asset groups) to which the goodwill is allocated. Estimating the present value requires the
Company to make an estimate of the expected future cash flows from the asset groups (sets of asset groups) and also to choose a suitable discount rate in
order to calculate the present value of those cash flows.119
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Deferred tax assets
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can
be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised based upon the likely
timing and level of future taxable profits together with future tax planning strategies.Lessee’s incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined the Company measures the lease liability at the present value of the lease payments
discounted using the lessee’s incremental borrowing rate. According to the economic environment the Company takes the observable interest rate as the
reference basis for determining the incremental borrowing rate then adjusts the observable interest rate based on its own circumstances underlying assets
lease terms and amounts of lease liabilities to determine the applicable incremental borrowing rate.Depreciation and amortisation
The Company calculates depreciation of fixed assets and amortisation of intangible assets on a straight-line basis over the estimated useful lives using
net residual values from the date when the assets are ready for their intended use. This reflects management’s estimate of the period over which the
Company intends to obtain future economic benefits from the use of the fixed assets and intangible assets.Fair value of investments in convertible corporate bonds
For investments in convertible corporate bonds measured at fair value the Company shall estimate the current price of ordinary shares risk-free interest
rate volatility rate and discount rate so there is uncertainty.Fair values of wealth management products and trust products
For wealth management products and trust products measured at fair value the Company is required to estimate the future cash flows expected to be
derived the volatility of credit risk and the discount rate and hence they are subject to uncertainty.
43. Changes in material accounting policies and significant estimates
(1) Changes in material accounting policies
□Applicable √N/A
(2) Changes in significant estimates
□Applicable √N/A
(3) Matters related to adjustment of the financial statements as at the beginning of the current year since the initial application of the new
accounting standard in 2025
□Applicable √N/A
44. Others120
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VI. Taxation
1. Main tax categories and tax rates
Category of tax Taxation basis Tax rates
Output tax is calculated based on sales and the applicable tax rates
Value-added tax (VAT)
after deducting allowable input tax credits. 13% 9% 6% 3% 1% 0%
Urban maintenance and
Actual paid turnover tax 7% 5%
construction tax
30%27%25.8%25%24%21%20%17%
Corporate income tax (CIT) Taxable Income
16.5%15%
Education surcharge Actual paid turnover tax 3%
Local education surcharge Actual paid turnover tax 2%
Note: Certain stores of Shenzhen Purcotton Technology Co. Ltd. (“Shenzhen Purcotton”) Guangzhou Purcotton Medical Technology Co. Ltd. (“Guangzhou Purcotton”) Beijing Purcotton
Technology Co. Ltd. (“Beijing Purcotton”) Shanghai Purcotton Technology Co. Ltd. (“Shanghai Purcotton”) Wuhan Purcotton Ltd. (“Wuhan Purcotton”) and Shenzhen Purunderwear
Sci-Tech Innovation Co. Ltd. (“Purunderwear”) are small-scale taxpayers subject to VAT levied at a rate of 3%. The VAT rate is 13% for non-small-scale taxpayers and 6% or 3% (small-
scale taxpayers) for catering services provided by certain stores. According to the Announcement of the Ministry of Finance and the State Taxation Administration on Value-added Tax
Reduction and Exemption Policy for Small-scale VAT Taxpayers (MOF STA Announcement [2023] No.19) small-scale VAT taxpayers with monthly sales amount of below RMB100000
(inclusive) shall be exempt from VAT. Small-scale VAT taxpayers whose taxable sales revenue shall be subject to the 3% levy rate shall be eligible for a reduced rate of 1%; for items
subject to prepayment of VAT at the rate of 3% the prepayment will be made at a reduced rate of 1%. This announcement shall be in effect until 31 December 2027. The sale of goods by
the Company’s subsidiaries as general taxpayers within the Company are subject to a VAT rate of 13%. The Company and some subsidiaries are eligible to engage in import/export business
and their export products are subject to VAT “exemption credit and refund” policies. VAT on income from consulting services provided by the Company is levied at a rate of 6%; VAT on
income from promotion services provided by Shenzhen Purcotton is levied at a rate of 6%; VAT on income from warehousing services provided by Winner Medical (Wuhan) is levied at a
rate of 6%; and VAT on income from customer services provided by Huanggang Purcotton is levied at a rate of 6%.Disclosure of entities subject to different corporate income tax rates
Name of taxpayers Income tax rates
Winner Medical Co. Ltd. 15%
Winner Medical (Huanggang) Co. Ltd. (“Winner Medical (Huanggang)”) 15%
Winner Medical (Jingmen) Co. Ltd. (“Winner Medical (Jingmen)”) 15%
Winner Medical (Tianmen) Co. Ltd. (“Winner Medical (Tianmen)”) 15%
Winner Medical (Chongyang) Co. Ltd. (“Winner Medical (Chongyang)”) 15%
Winner Medical (Jiayu) Co. Ltd. (“Winner Medical (Jiayu)”) 15%
Yichang Winner Medical Textile Co. Ltd. (“Winner Medical (Yichang)”) 25%
Winner Medical (Heyuan) Co. Ltd. (“Winner Medical (Heyuan)”) 25%
Winner Medical (Wuhan) Co. Ltd. (“Winner Medical (Wuhan)”) 15%
Winner Medical (Hong Kong) Ltd. (“Hong Kong Winner”) 16.50%121
Section VIII Financial Report
Name of taxpayers Income tax rates
Winner Medical Malaysia Sdn. Bhd. (“Winner Medical Malaysia”) 24%
Winner Guilin 15%
Shenzhen Junjian Medical Device Co. Ltd. (“Junjian Medical”) 25%
Shanghai Hongsong Medical Device Co. Ltd. (“Shanghai Hongsong”) 25%
Nature Health Development (Hong Kong) Co. Ltd. (“Nature Health (HK)”) 16.50%
Winner (Jingzhou) Latex Products Co. Ltd. (“Winner Jingzhou”) 25%
Winner Biomedical Technology (Wuhan) Co. Ltd. (“Winner Biomedical”) 20%
Hubei Zhongfu New Materials Co. Ltd. (“Hubei Zhongfu”) 20%
Shenzhen Purcotton 25%
Beijing Purcotton 20%
Guangzhou Purcotton 20%
Shanghai Purcotton 20%
Shenzhen Qianhai Purcotton E-Commerce Co. Ltd. (“Qianhai Purcotton”) 25%
Shenzhen Purunderwear Sci-Tech Innovation Co. Ltd. (“Purunderwear”) 20%
Huanggang Purcotton Ltd. (“Huanggang Purcotton”) 20%
Wuhan Purcotton 20%
Hong Kong Purcotton Ltd. (“Hong Kong Purcotton”) 16.50%
Purcotton Agricultural Technology (Wuhan) Co. Ltd. (“Purcotton Agricultural”) 20%
Shenzhen PureH2B Technology Co. Ltd. (“PureH2B”) 20%
Zhejiang Longterm Medical Technology Co. Ltd. (“Longterm Medical”) 15%
Hangzhou Shengyi Technology Co. Ltd. (“Hangzhou Shengyi”) 20%
Xi’an Longtemu Medical Technology Co. Ltd. (“Xi’an Longtemu”) 20%
Deqing Longterm Medical Silica Gel Products Co. Ltd. (“Deqing Longterm”) 20%
Longterm Medical US LLC (“Medical US”) Federal 21%
LONGTERM MEDICALS.DE.R.L.DE C.V (“MEDICAL CV”) 30%
Zhejiang Honglan Technology Co. Ltd. (“Zhejiang Honglan”) 20%
Winner Medical (Hunan) 15%
Hunan Ruian Medical Device Technology Co. Ltd. (“Ruian Medical Device”) 20%
Global Resources International Inc. (“GRI USA”) Federal 21%122
Section VIII Financial Report
Name of taxpayers Income tax rates
GRI-Alleset Limited B.V. (“Alleset BV”) 25.80%
Alleset Healthcare UK Limited (“Alleset UK”) 25%
GRI-Alleset Limited (“GRI Alleset”) 16.50%
GRI Medical & Electronics Technology Co. Ltd. (“GRI METC”) 15%
Wuhu Shiyuan Zhuochuang Medical Material Technology Co. Ltd. (“GRI Nanling”) 20%
GRI (Wuhu) New Materials Co. Ltd. (“GRI Wuhu”) 15%
Jiaxing Aixin Medical Device Co. Ltd. (“Alleset China”) 20%
Zhejiang Aixin Polymer Materials Co. Ltd. (“AXHPM”) 25%
GRI Precision Medical Devices Co. Ltd. (“GRI PM”) 20%
Alleset Singapore Ltd (“Alleset Singapore”) 17%
Curicyn Inc. (“Curicyn”) Federal 21%
Advanced Product Solutions Inc. (“APS”) Federal 21%
Global Resources Investments LLC (“GRI Investment”) Federal 21%
GRI-Alleset Inc. (“Alleset Inc”) Federal 21%
Tennessee Foam LLC (“TNFOAM”) Federal 21%
Invenio Healthcare LLC (“Invenio LLC”) Federal 21%
Invenio Procedure Solutions LLC (“IPS”) Federal 21%
Global Resources International Dominicana-Grid-SRL (“GRI DR”) 27%
Thermogear Inc. (“Thermogear”) Federal 21%
Invenio Alternate Care Solutions LLC (“IACS”) Federal 21%
ETI Services Inc. (“ETI Services”) Federal 21%
Global Resources (Vietnam) Group Limited Company (“GRI VN”) 20%123
Section VIII Financial Report
2. Tax preference
Category of
Name of taxpayers Preferential policy Tax rates Certificate No. Certicate date
tax
Winner Medical Co.
15% GR202444206145 2024.12.26
Ltd.Winner Medical
15% GR201942002414 2022.10.12
(Huanggang)
Winner Medical
15% GR202442001714 2024.12.4
(Jingmen)
Winner Medical
15% GR202442003221 2024.11.16
(Tianmen)
According to the second paragraph of
Winner Medical Article 28 of the Corporate Income Tax
15% GR202442001824 2024.11.15
(Chongyang) Law of the People’s Republic of China
Winner Medical stipulates with respect to a high-tech
(Jiayu) enterprise that is specifically supported by
15% GR202442004304 2024.12.16
the State the tax on its income shall be
Winner Medical levied at a reduced rate of 15 percent. 15% GR202242002319 2022.11.9
(Wuhan)
Winner Guilin 15% GR202345000323 2023.12.4
Longterm Medical 15% GR202333003226 2023.12.8
Winner Medical
15% GR202243004478 2022.12.2
(Hunan)
GRI METC 15% GR202233001449 2022.12.24
GRI Wuhu Corporate 15% GR202234001166 2022.10.18
income tax
Winner Biomedical 20% N/A N/A
(CIT)
Hubei Zhongfu 20% N/A N/A
Beijing Purcotton 20% N/A N/A
Guangzhou Purcotton 20% N/A N/A
Shanghai Purcotton 20% N/A N/A
According to in the Announcement of the
Purunderwear Ministry of Finance and the State Taxation 20% N/A N/A
Huanggang Purcotton Administration on Relevant Tax and Fee 20% N/A N/A
Policies with Respect to Further
Wuhan Purcotton 20% N/A N/A
Supporting the Development of Small and
Purcotton Agricultural Micro Enterprises and Individually-Owned 20% N/A N/A
Shenzhen Jinliang Businesses (MOF STA Announcement 20% N/A N/A
[2023] No. 12) the policy of small and
Hunan Ruian 20% N/A N/A
low-profit enterprises calculating the
Hangzhou Shengyi taxable income at 25% and paying 20% N/A N/A
Zhejiang Honglan corporate income tax at a rate of 20% is 20% N/A N/A
extended to 31 December 2027.Xi'an Longtemu 20% N/A N/A
Deqing Longterm 20% N/A N/A
GRI Nanling 20% N/A N/A
Alleset China 20% N/A N/A
GRI PM 20% N/A N/A
According to the Announcement on the Value-added Tax Super-deduction Policy for Advanced Manufacturing Enterprises (MOF STA Announcement
[2023] No.43) from 1 January 2023 to 31 December 2027 advanced manufacturing enterprises are allowed to add an extra 5% based on the deductible
input tax for the current period for deduction of the VAT payable (the “Super-deduction Policy”). The Super-deduction Policy is applicable to Winner
Medical Co. Ltd. Winner Medical (Huanggang) Winner Medical (Jingmen) Winner Medical (Tianmen) Winner Medical (Chongyang) Winner
Medical (Jiayu) Winner Medical (Wuhan) Winner Guilin Longterm Medical Winner Medical (Hunan) and GRI WUHU.124
Section VIII Financial Report
3. Others
VII. Notes to the Consolidated Financial Statements
1. Currency fund
Unit: RMB
Items Closing balance Opening balance
Cash on hand 156754.00 152838.15
Cash at banks 1468255959.55 1348440889.85
Other currency fund 63992844.92 63495170.63
Total 1532405558.47 1412088898.63
Including: Total amount deposited abroad 125971016.14 87101777.00
Other description
Wherein the breakdown of currency funds that are: (1) restricted in use due to mortgages pledges or freezes; (2) restricted to be withdrawn due to
centralised management; and (3) deposited outside Mainland China with restrictions on repatriation is as follows:
Closing balance of the previous
Items Total ending balance
year
Guarantee deposit for bank acceptance bill* 1 35198794.36 44202960.58
Letter of credit* 2 100000.00 100000.00
Performance bond* 3 3963881.28 4384215.00
Letter of guarantee* 4 0.00 230000.00
Balance of other restricted currency funds* 5 6056494.92 6074337.70
Total 45319170.56 54991513.28
*1 Guarantee deposit for bank acceptance bill refers to the guarantee deposit made by Longterm Medical Winner Medical (Hunan) and GRI to apply for
bank acceptance bills.*2 Letter of credit is the guarantee deposit made by Winner Medical (Tianmen) for international and domestic letters of credit.*3 The performance bond refers to the bond deposited by Hong Kong Winner for bidding transactions with hospitals.125
Section VIII Financial Report
*4 Represents the deposit made by Winner Medical (Hunan) for signing the demand guarantee.*5 The balance of other restricted currency funds refers to the receipt guarantee deposit of Winner Medical (Shenzhen); the balance of special deposit
accounts for restricted non-budget units opened by Shenzhen Purcotton in accordance with the regulations on prepaid card issuance formulated by the
Ministry of Commerce and product guarantee deposit for applets.
2. Trading financial assets
Unit: RMB
Items Closing balance Opening balance
Financial assets at fair value through profit or loss 2124524520.71 2921341484.39
Including:
Wealth management products issued by banks 825454685.08 1332175347.40
Trust plan 1299069835.63 1589166136.99
Including:
Total 2124524520.71 2921341484.39
Other descriptions:
3. Derivative financial assets
Unit: RMB
Items Closing balance Opening balance
Other descriptions:
4. Notes receivable
(1) Classified presentation of notes receivable
Unit: RMB
Items Closing balance Opening balance
Bank acceptance bills 23468822.98 34319961.81
Total 23468822.98 34319961.81126
Section VIII Financial Report
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Category
Carrying Carrying
Provision amount Provision amount
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Including:
Where the provision for bad debts are made based on the general ECL model:
□Applicable √N/A
(3) Provision for bad debts accrued recovered or reversed
Provision for bad debts accrued:
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Write-off Others
Significant recovery or reversal of provision for bad debts for the current period:
□Applicable √N/A
(4) Notes receivable pledged
Unit: RMB
Pledged notes receivable at end of the
Items
current period
(5) Notes receivable endorsed or discounted and not yet expired at the balance sheet date
Unit: RMB
Items Derecognised Not derecognised
Bank acceptance bills 11287766.20
Total 11287766.20127
Section VIII Financial Report
(6) Notes receivable actually written off
Unit: RMB
Items Amount written off
Write-off of significant notes receivable:
Unit: RMB
Amount written Reasons for Write-off procedures Whether due to/from related party
Entity name Nature of notes receivable
off write-off performed transactions
Description of write-off of notes receivable:
5. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 1236986957.27 1006495090.20
1-2 years 25426736.37 18474160.02
2-3 years 8212254.45 8532477.53
Over 3 years 11955516.56 13225461.37
3-4 years 4417052.88 7176362.31
4-5 years 4786563.36 3065166.50
Over 5 years 2751900.32 2983932.56
Total 1282581464.65 1046727189.12128
Section VIII Financial Report
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Category
Carrying
Carrying amount
Proporti Provisio Proporti Provision amount
Amount Amount Amount Amount
on n ratio on ratio
Provision for bad
debts made on an 3228457.30 0.25% 3228457.30 100.00% 0.00 4274807.30 0.41% 3774809.80 88.30% 499997.50
individual basis
Including:
Provision for bad
debts made on a 1279353007.35 99.75% 74728587.54 5.84% 1204624419.81 1042452381.82 99.59% 62334737.94 5.98% 980117643.88
collective basis
Including:
Provision for bad
debts made on a
collective basis by 1279353007.35 99.75% 74728587.54 5.84% 1204624419.81 1042452381.82 99.59% 62334737.94 5.98% 980117643.88
credit risk
characteristics
Total 1282581464.65 100.00% 77957044.84 6.08% 1204624419.81 1046727189.12 100.00% 66109547.74 6.32% 980617641.38
Provision for bad debts made on an individual basis
Unit: RMB
Opening balance Closing balance
Name
Provision for bad Gross carrying Reasons for
Gross carrying amount Provision for bad debt Provision ratio
debt amount provision
Expected to be
Others 4274807.30 3774809.80 3228457.30 3228457.30 100.00%
irrecoverable
Total 4274807.30 3774809.80 3228457.30 3228457.30
Category name of provision for bad debts by combination
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Within 1 year 1236986957.28 61849352.78 5.00%
1-2 years 25009346.37 2500934.64 10.00%
2-3 years 5559854.45 1667956.33 30.00%
3-4 years 4258385.57 2129192.78 50.00%
4-5 years 4786563.36 3829250.69 80.00%
Over 5 years 2751900.32 2751900.32 100.00%
Total 1279353007.35 74728587.54129
Section VIII Financial Report
Description of the basis for determining provision for bad debts on a collective basis:
Where the provision for bad debts are made based on the general ECL model:
□Applicable √N/A
(3) Provision for bad debts accrued recovered or reversed
Provision for bad debts accrued:
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Write-off Others
Provision for bad debts 66109547.74 25650093.56 13947675.47 78119.40 223198.41 77957044.84
Total 66109547.74 25650093.56 13947675.47 78119.40 223198.41 77957044.84
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for
Entity name Recovery method
reversed reversal bad debts and its reasonableness
(4) Accounts receivable actually written off
Unit: RMB
Items Amount written off
Accounts receivable actually written off 78119.40
Write-off of significant accounts receivable:
Unit: RMB
Nature of accounts Amount written Reasons for Write-off procedures Whether due to/from related party
Entity name
receivable off write-off performed transactions
Description of write-off of accounts receivable:130
Section VIII Financial Report
(5) Top 5 accounts receivable and contract assets with closing balances by debtor
Unit: RMB
Closing balance of bad
Percentage of total debt provision for
Closing Closing balance of
Closing balance of closing balance of accounts receivable and
Entity name balance of accounts receivable
accounts receivable accounts receivable impairment allowances
contract assets and contract assets
and contract assets for contract assets
Ranking first 230259170.94 0.00 230259170.94 17.95% 11542572.96
Ranking second 23438524.25 0.00 23438524.25 1.83% 1171926.21
Ranking third 20782683.31 0.00 20782683.31 1.62% 1079205.26
Ranking fourth 19800537.41 0.00 19800537.41 1.54% 990026.87
Ranking fifth 19767698.52 0.00 19767698.52 1.54% 988384.93
Total 314048614.43 0.00 314048614.43 24.48% 15772116.23
6. Contract assets
(1) Details of contract assets
Unit: RMB
Closing balance Opening balance
Items
Gross carrying Provision for bad Gross carrying Provision for bad
Carrying amount Carrying amount
amount debt amount debt
(2) Amount and reasons for significant changes in carrying amount in the reporting period
Unit: RMB
Items Change amount Reasons for changes
(3) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Carrying Gross carrying amount Provision for bad debt Carrying
Category
amount amount
Provision Provision
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Including:131
Section VIII Financial Report
Category numbers of provision for bad debts by combination: 0
Where the provision for bad debts are made based on the general ECL model:
□Applicable √N/A
(4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Items Provision Recovery or reversal Transfer/Write-off Reason
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for bad
Entity name Recovery method
reversed reversal debts and its reasonableness
Other description
(5) Contract assets actually written off
Unit: RMB
Items Amount written off
Write-off of significant contract assets:
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related party
Entity name Amount written off
assets off performed transactions
Description of write-off of contract assets:
Other descriptions:
7. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
Items Closing balance Opening balance
Bank acceptance bills 44592896.78 68349926.24
Total 44592896.78 68349926.24132
Section VIII Financial Report
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Carrying Gross carrying amount Provision for bad debt Carrying
Category
amount amount
Provision Provision
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Including:
Where the provision for bad debts are made based on the general ECL model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt Lifetime ECLs Lifetime ECLs Total
12-month ECLs
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025
Criteria for stage classification and provision ratio for bad debts
Description of changes in the book balance of receivables financing contributing to significant changes in the loss allowance in the current period:
(3) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Transfer/Write-off Other changes
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or The basis for determining the original provision ratio for
Entity name Reasons for reversal Recovery method
reversed bad debts and its reasonableness
Other descriptions:
(4) Receivables financing pledged
Unit: RMB
Items Pledged notes receivable at end of the current period133
Section VIII Financial Report
(5) Receivables financing endorsed or discounted and not yet expired at the balance sheet date
Unit: RMB
Items Derecognised Not derecognised
Bank acceptance bills 194524604.01
Total 194524604.01
(6) Receivables financing actually written off
Unit: RMB
Items Amount written off
Write-off of significant receivables financing
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related party
Entity name Amount written off
assets off performed transactions
Description of write-off of receivables financing:
(7) Changes in receivables financing and fair value movements during the period
(8) Other description
8. Other receivables
Unit: RMB
Items Closing balance Opening balance
Other receivables 177877901.77 186351012.28
Total 177877901.77 186351012.28
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Items Closing balance Opening balance134
Section VIII Financial Report
2) Significant overdue interest
Unit: RMB
Borrower Closing balance Overdue time Reason for overdue Impairment or not and basis for judgment
Other descriptions:
3) Disclosure by bad debt provision accrual method
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Recovery or
Provision Transfer/Write-off Other changes
reversal
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for bad
Entity name Recovery method
reversed reversal debts and its reasonableness
Other descriptions:
5) Dividends receivable actually written off
Unit: RMB
Items Amount written off
Write-off of significant dividends receivable
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related party
Entity name Amount written off
assets off performed transactions
Description of write-off of receivables financing:
Other descriptions:135
Section VIII Financial Report
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
2) Significant dividends receivable aged over 1 year
Unit: RMB
Item (or investee) Closing balance Aging Reasons for non-recovery Impairment or not and basis for judgment
3) Disclosure by bad debt provision accrual method
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Transfer/Write-off Other changes
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
The basis for determining the original provision ratio for
Entity name Amount recovered or reversed Reasons for reversal Recovery method
bad debts and its reasonableness
Other descriptions:
5) Dividends receivable actually written off
Unit: RMB
Items Amount written off136
Section VIII Financial Report
Write-off of significant dividends receivable
Unit: RMB
Reasons for write- Write-off procedures Whether due to/from related party
Entity name Nature of contract assets Amount written off
off performed transactions
Description of write-off of receivables financing:
Other descriptions:
(3) Other receivables
1) Classification by nature
Unit: RMB
Nature of contract assets Closing balance Opening balance
Compensation for investment and construction project of Winner
217155320.00217155320.00
Medical (Heyuan)
Deposit and guarantee deposit 50359896.71 51068341.89
Amounts due from related parties outside the scope of consolidation
5168754.385186667.64
of the Group
Employee pretty cash 1744323.40 1625166.73
Others 23294709.45 31649509.07
Total 297723003.94 306685005.33
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 33528208.81 46812996.63
1-2 years 7679755.86 8315527.96
2-3 years 5700068.86 3952388.84
Over 3 years 250814970.41 247604091.90
3-4 years 6106944.52 3951681.84
4-5 years 8661915.86 6965806.49
Over 5 years 236046110.03 236686603.57
Total 297723003.94 306685005.33137
Section VIII Financial Report
3) Disclosure by bad debt provision accrual method
√Applicable □N/A
Unit: RMB
Closing balance Opening balance
Category Gross carrying amount Provision for bad debt Carrying amount Gross carrying amount Provision for bad debt Carrying amount
Amount Proportion Amount Provision ratio Amount Proportion Amount Provision ratio
Provision for bad debts
217432787.9773.03%108855127.9750.06%108577660.00219310090.3771.51%110322244.5150.30%108987845.86
made on an individual basis
Including:
Provision for bad debts
80290215.9726.97%10989974.2013.69%69300241.7787374914.9628.49%10011748.544.57%77363166.42
made on a collective basis
Including:
Aging group 26945860.20 9.05% 8460401.63 31.40% 18485458.57 33698253.02 10.99% 7465560.68 3.40% 26232692.34
Deposit and guarantee
50591451.3316.99%2529572.575.00%48061878.7650923757.5016.60%2546187.861.16%48377569.64
deposit
No credit risk group 2752904.44 0.93% 0.00 2752904.44 2752904.44 0.90% 2752904.44
Total 297723003.94 100.00% 119845102.17 40.30% 177877901.77 306685005.33 100.00% 120333993.05 54.87% 186351012.28
Provision for bad debts made on an individual basis
Unit: RMB
Opening balance Closing balance
Name
Gross carrying Gross carrying Provision for bad Provision Reasons for
Provision for bad debt
amount amount debt ratio provision
Government
Zijin County People’s
217155320.00 108577660.00 217155320.00 108577660.00 50.00% receivables aged
Government
over 5 years
Total 217155320.00 108577660.00 217155320.00 108577660.00
Provision for bad debts made on a collective basis: Aging
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Within 1 year 17307131.42 865351.36 5.00%
1-2 years 1633402.63 163340.26 10.00%
2-3 years 7400.96 2220.29 30.00%
3-4 years 27565.14 13782.57 50.00%
4-5 years 2773264.53 2218611.63 80.00%
Over 5 years 5197095.52 5197095.52 100.00%
Total 26945860.20 8460401.63138
Section VIII Financial Report
Description of the basis for determining provision for bad debts on a collective basis:
Where the provision for bad debts are made based on the general ECL model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt 12-month ECLs Lifetime ECLs Lifetime ECLs Total
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025 10011748.65 98581614.86 11740629.54 120333993.05
Balance at 1 January 2025
Provision 7334793.67 7334793.67
Reversal 7799931.81 7799931.81
Other changes -23752.74 -23752.74
Balance at 30 June 2025 9522857.77 98581614.86 11740629.54 119845102.17
Criteria for stage classification and provision ratio for bad debts
Description of changes in the book balance of other receivables contributing to significant changes in the loss allowance in the current period
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Provision for bad debts accrued:
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Transfer/Write-
Provision Recovery or reversal Others
off
Provision for bad debts of
120333993.057334793.677799931.81-23752.74119845102.17
other receivables
Total 120333993.05 7334793.67 7799931.81 -23752.74 119845102.17
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for bad
Entity name Recovery method
reversed reversal debts and its reasonableness139
Section VIII Financial Report
5) Other receivables actually written off
Unit: RMB
Items Amount written off
Write-off of significant dividends receivable:
Unit: RMB
Reasons for write- Write-off procedures Whether due to/from related party
Entity name Nature of other receivables Amount written off
off performed transactions
Description of write-off of other receivables:
6) Top 5 other receivables with closing balances by debtor
Unit: RMB
Proportion in total Closing balance of
Nature of other
Entity name Closing balance Aging balance of other provision for bad
receivables
receivables (%) debts
Receivables
Ranking first related to Heyuan 217155320.00 Over 5 years 72.94% 108577660.00
project
Amounts due
from related Over 5 years:
parties outside the RMB5138505.36; the rest is
5168754.38 within 4 years 1.74% 5151685.67 Ranking second scope of
consolidation of
the Group
Ranking third Deposit and 3793086.59 Within 1 year 1.27% 189654.33
guarantee deposit
Ranking fourth Others 2752904.44 2-3 years 0.92% 0.00
Deposit and
Ranking fifth 2311115.80 4-5 years 0.78% 115555.79
guarantee deposit
Total 231181181.21 77.65% 114034555.79
7) Presented as “Other receivables” due to centralised management
Other descriptions:140
Section VIII Financial Report
9. Prepayments
(1) Presentation of prepayments by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 152131529.84 99.56% 104869986.82 97.96%
1-2 years 583365.38 0.38% 1216447.34 1.14%
2-3 years 87891.00 0.06% 965467.52 0.90%
Total 152802786.22 107051901.68
Description of the reason why significant prepayments aged over one year were not settled in time:
(2) Top 5 prepayments with closing balances by supplier
Entity name Year-end balance Proportion in total closing balance of prepayments (%)
Ranking first 44691889.90 29.25%
Ranking second 10970357.02 7.18%
Ranking third 9790355.89 6.41%
Ranking fourth 3108225.39 2.03%
Ranking fifth 2963022.65 1.94%
Total 71523850.85 46.81%
Other descriptions:
10. Inventories
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No141
Section VIII Financial Report
(1) Classification
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Items writedown of writedown of
Gross carrying Gross carrying
inventories/impairm Carrying amount inventories/impair Carrying amount
amount amount
ent of costs to full a ment of costs to full
contract a contract
Raw materials 527386418.98 23951072.99 503435345.99 422260084.86 9769459.08 412490625.78
Work in
215759161.0012994938.66202764222.34265426666.7029252698.59236173968.11
process
Goods on hand 1363263594.89 179722045.77 1183541549.12 1411909543.62 167669713.69 1244239829.93
Goods in
43392802.55867705.7142525096.8448244017.8048244017.80
transit
Low-value
15919473.091779132.5514140340.5418956973.992290807.3616666166.63
consumables
Total 2165721450.51 219314895.68 1946406554.83 2166797286.97 208982678.72 1957814608.25
(2) Data resources recognised as inventories
Unit: RMB
Items Purchased data resources Self-processed data resources Other data resources Total
(3) Data resources recognised as inventories
Unit: RMB
Increase in current period Decrease in current period
Items Opening balance Closing balance
Provision Others Reversal or write-off Others
Raw materials 9769459.08 17831051.86 3649437.95 23951072.99
Work in process 29252698.59 5020955.94 21278715.87 12994938.66
Goods on hand 167669713.69 77259423.03 65207090.95 179722045.77
Goods in transit 1415065.71 547360.00 867705.71
Low-value
2290807.36353081.07864755.881779132.55
consumables
Total 208982678.72 101879577.61 91547360.65 219314895.68142
Section VIII Financial Report
Inventories written down on a collective basis
Unit: RMB
The end of the period The beginning of the period
Name
Accruing Accruing
Closing balance Inventory write-downs Opening balance Inventory write-downs
proportion proportion
Raw materials
and materials
527386418.9823951072.994.54%422260084.869769459.082.31%
consigned for
processing
Work in process 215759161.00 12994938.66 6.02% 265426666.70 29252698.59 11.02%
Goods on hand 1363263594.89 179722045.77 13.18% 1411909543.62 167669713.69 11.88%
Goods in transit 43392802.55 867705.71 2.00% 48244017.80
Low-value
15919473.091779132.5511.18%18956973.992290807.3612.08%
consumables
Total 2165721450.51 219314895.68 10.13% 2166797286.97 208982678.72 9.64%
Criteria for provision for write-down of inventories on a collective basis
(4) Description of the capitalised amount of borrowing costs included in closing balance of inventories
(5) Description of amortisation of costs to fulfil a contract for the current period
11. Financial assets held for trading
Unit: RMB
Items Closing Impairment Carrying amount at end of the period Fair value Estimated disposal cost Estimated disposal time
balance allowance
Other description
12. Current portion of non-current assets
Unit: RMB
Items Closing balance Opening balance
Long-term receivables due within one year 4603307.93 4479684.84
Principal and interest of certificates of deposits due within
346056583.30340988583.36
one year
Total 350659891.23 345468268.20
(1) Debt investments due within one year
□Applicable √N/A143
Section VIII Financial Report
(2) Other debt investments due within one year
□Applicable √N/A
13. Other current assets
Unit: RMB
Items Closing balance Opening balance
Return cost receivable 612193.94 792155.41
VAT input tax to be deducted/Uncertified input tax 60902959.62 38151229.60
Prepaid corporate income tax 6923730.24 745868.29
Prepaid expenses 18031831.86 28014182.32
Others 266485.91 33088.28
Total 86737201.57 67736523.90
Other descriptions:
14. Debt investments
(1) Details of debt investments
Unit: RMB
Closing balance Opening balance
Items
Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount allowance amount allowance
Changes in impairment allowance for debt investments in the current period
Unit: RMB
Items Opening balance Increase Decrease Closing balance
(2) Important debt investments at end of year
Unit: RMB
Closing balance Opening balance
Item Delinquency Delinquency
Effective Maturity Effective Maturity
Par value Coupon rate in principal Par value Coupon rate in principal
interest rate date interest rate date
payments payments144
Section VIII Financial Report
(3) Impairment allowance
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt Lifetime ECLs Lifetime ECLs Total
12-month ECLs
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025
Criteria for stage classification and provision ratio for bad debts
(4) Debt investments actually written off
Unit: RMB
Items Amount written off
Write-off of significant debt investments
Description of write-off of debt investments:
Description of changes in the book balance of other receivables contributing to significant changes in the loss allowance in the current period
□Applicable √N/A
Other descriptions:
15. Other debt investments
(1) Details of other debt investments
Unit: RMB
Change in Accumulated impairment
Cumulative
Opening Interest Interest fair value Closing allowance recognised in
Items Cost change in Notes
balance accrued adjustment during the balance other comprehensive
fair value
period income
Changes in impairment allowance for other debt investments in the current period
Unit: RMB
Items Opening balance Increase Decrease Closing balance145
Section VIII Financial Report
(2) Important other debt investments at end of year
Unit: RMB
Closing balance Opening balance
Delinquenc
Item Delinquency
Effective Maturity Par Effective Maturity y in
Par value Coupon rate in principal Coupon rate
interest rate date value interest rate date principal
payments
payments
(3) Impairment allowance
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt Lifetime ECLs Lifetime ECLs Total
12-month ECLs
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025
Criteria for stage classification and provision ratio for bad debts
(4) Other debt investments actually written off
Unit: RMB
Items Amount written off
Write-off of significant other debt investments
Description of changes in the book balance of other receivables contributing to significant changes in the loss allowance in the current period
□Applicable √N/A Other descriptions:
16. Other equity investments
Unit: RMB
Gain in other Loss in other
Accumulative Accumulative loss Dividends Reasons for being
comprehensive comprehensive
Opening gain in other in other income Closing designated as at fair value
Item income during income during
balance comprehensive comprehensive during the balance through other
the current the current
income income current period comprehensive income
period period
Derecognition during the current period
Unit: RMB
Item Accumulated gain transferred to retained earnings Accumulated loss transferred to retained earnings Reason for derecognition146
Section VIII Financial Report
Breakdown of equity investments which are not held for trading during the current year
Unit: RMB
Dividend Transfers of the Reasons for being designated as at fair Reasons for transfers of
Accumulated Accumulated
Item income cumulative gain or loss value through other comprehensive cumulative gain or loss
gains losses
recognised within equity income within equity
Other descriptions:
17. Long-term receivables
(1) Long-term receivables
Unit: RMB
Closing balance Opening balance
Discount rate
Items
Gross carrying Provision for bad Gross carrying Provision for range
Carrying amount Carrying amount
amount debt amount bad debt
Finance leases 36657910.58 36657910.58 35689264.21 35689264.21 4.20%-5.00%
Including:
Unearned --6273137.81 -6273137.81 -7241784.14 -7241784.14 4.20%-5.00%
finance income
Current portion
of non-current -4603307.89 -4603307.89 -4479684.84 -4479684.84 4.20%-5.00%
assets
Rental deposits 65448429.46 3272421.47 62176007.99 60237947.22 3011897.37 57226049.85 2.60%-2.90%
Total 97503032.15 3272421.47 94230610.68 91447526.59 3011897.37 88435629.22
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Category
Carrying amount Carrying amount
Provision Provision
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Provision for
bad debts
made on a 100.00% 3272421.47 3.36% 94230610.68 91447526.59 100.00% 3011897.37 3.29% 88435629.22
collective 97503032.15
basis
Including:
Total 97503032.15 100.00% 3272421.47 3.36% 94230610.68 91447526.59 100.00% 3011897.37 3.29% 88435629.22147
Section VIII Financial Report
Category name of provision for bad debts by combination:
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Provision for bad debts made on a collective
97503032.153272421.473.36%
basis by credit risk characteristics
Including:
Deposit and guarantee deposit 65448429.46 3272421.47 5.00%
Others 32054602.69
Total 97503032.15 3272421.47
Description of the basis for determining provision for bad debts on a collective basis:
Where the provision for bad debts are made based on the general ECL model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt Lifetime ECLs Lifetime ECLs Total
12-month ECLs
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025
Criteria for stage classification and provision ratio for bad debts
(3) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Recovery or
Provision Transfer/Write-off Others
reversal
Rental deposits 3011897.37 643111.74 382587.64 3272421.47
Total 3011897.37 643111.74 382587.64 3272421.47
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
The basis for determining the original provision ratio for
Entity name Amount recovered or reversed Reasons for reversal Recovery method
bad debts and its reasonableness
Other descriptions:148
Section VIII Financial Report
(4) Long-term receivables actually written off
Unit: RMB
Items Amount written off
Write-off of significant long-term receivables:
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related party
Entity name Amount written off
assets off performed transactions
Description of write-off of long-term receivables:
18. Long-term equity investments
Unit: RMB
Openi Changes for the period Closin
ng g
balanc Add Investment Closing balance balanc
Opening balance e of ition Redu gains and Adjustment on Other Provisi e of
Investee Cash
impair al ced losses other change on for (Carrying (Carrying amount) impairdividends or Others
ment inve invest recognised comprehensive s in impair amount) ment
prots declared
provisi stme ment under the income equity ment provisi
on nt equity method on
I. Joint ventures
II. Associates
Company S (Note) 423148649.68 -12505979.60 -6328085.78 404314584.30
Chengdu Winner Likang Medical
20712599.93213714.7120926314.64
Products Co. Ltd.Zhejiang Shiyou Medical
992318.26-546758.59-2233.01443326.66
Materials Co. Ltd.Hubei Xianchuang Technology
502210.13502210.13
Co. Ltd.Sub-total 445355778.00 -12839023.48 -6330318.79 426186435.73
Total 445355778.00 -12839023.48 -6330318.79 426186435.73
Note: On 28 February 2024 the Company acquired 35.2055% of the equity of Company S for 60 million US dollars (equivalent to RMB428074000.00)
The Company paid the cash consideration on 12 March 2024 and appointed two directors to Company S on 12 March 2024 and 1 April 2024 respectively.The Company has a significant influence on Company S and is accounted for using the equity method.The recoverable amount has been determined based on the fair value less costs of disposal
□Applicable √N/A
The recoverable amount has been determined based on the present value of expected future cash flows
□Applicable √N/A
Reasons for the difference between the above information and the information used in the prior year’s impairment testing or external information
Reasons for the difference between the information used in the prior year’s impairment testing and the actual situation of the current year
Other description149
Section VIII Financial Report
19. Other non-current financial assets
Unit: RMB
Items Closing balance Opening balance
Financial assets at fair value through profit or loss
Including: Fund investments 76673047.39 76673047.39
Convertible corporate bond investments (Note) 30746095.73 31233669.47
Total 107419143.12 107906716.86
Other descriptions:
Note: The convertible bonds were subscribed by Nature Health Development (Hong Kong) Co. Ltd. on 20 September 2024 for NUGEN MEDICAL
DEVICES INC. These convertible bonds are due within five years from the closing date and bear an annual interest rate of 12%. Prior to maturity the
holders have the right to convert all or any portion of the outstanding principal amount of the convertible bonds into one ordinary share of NUGEN
MEDICAL DEVICES INC. and one ordinary share purchase warrant at an exercise price of CAD0.10 per share.
20. Investment properties
(1) Investment properties measured at cost
√Applicable □N/A
Unit: RMB
Construction in
Items Buildings Land use rights Total
progress
I. Cost
1. Opening balance 5972970.52 5972970.52
2. Increase in current period
(1) Purchases
(2) Transfers from inventories/fixed
assets/construction in progress
(3) Increase from business combinations
3. Decrease in current period
(1) Disposals
(2) Other transfer-outs
4. Closing balance 5972970.52 5972970.52150
Section VIII Financial Report
Construction in
Items Buildings Land use rights Total
progress
II. Accumulated depreciation and amortisation
1. Opening balance 3612624.27 3612624.27
2. Increase in current period 449655.81 449655.81
(1) Provision or amortisation 449655.81 449655.81
3. Decrease in current period
(1) Disposals
(2) Other transfer-outs
4. Closing balance 4062280.08 4062280.08
III. Impairment allowance
1. Opening balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposals
(2) Other transfer-outs
4. Closing balance
IV. Carrying amount
1. Carrying amount at end of the period 1910690.44 1910690.44
2. Carrying amount at beginning of the period 2360346.25 2360346.25
The recoverable amount has been determined based on the fair value less costs of disposal
□Applicable √N/A
The recoverable amount has been determined based on the present value of expected future cash flows
□Applicable √N/A
Reasons for the difference between the above information and the information used in the prior year’s impairment testing or external information
Reasons for the difference between the information used in the prior year’s impairment testing and the actual situation of the current year
Other descriptions:
(2) Investment properties measured using the fair value model
□Applicable √N/A151
Section VIII Financial Report
(3) Transfer to investment properties using the fair value model
Unit: RMB
Items Accounting accounts before Amount Reasons for Approval Effect on prot or Effect on other
such transfer transfer procedures loss comprehensive income
(4) Investment properties without certificates of title
Unit: RMB
Items Carrying amount Reasons for not obtaining the
certicate of title
Other description
21. Fixed assets
Unit: RMB
Items Closing balance Opening balance
Fixed assets 3945978042.78 3354304108.81
Total 3945978042.78 3354304108.81
(1) Fixed assets
Unit: RMB
Electronic equipment
Items Buildings Land ownership Machinery Vehicles office equipment and Total
others
I. Cost
1. Opening balance 2449675239.17 2689773.12 2175377566.42 43346681.91 237919582.49 4909008843.11
2. Increase in current period 571367594.74 180974564.07 231819.75 16319781.52 768893760.08
(1) Purchases 6694048.89 79545425.93 231819.75 16319781.52 102791076.09
(2) Transfers from
564673545.85101429138.14666102683.99
construction in progress
(3) Increase from business
combinations
3. Decrease in current period 379166.34 40664825.74 6432798.58 4416188.03 51892978.69
(1) Disposals or
1066128.8540118303.176399157.424181015.9151764605.35
retirements
Changes in exchange rate -686962.51 546522.57 33641.16 235172.12 128373.34
4. Closing balance 3020663667.57 2689773.12 2315687304.75 37145703.08 249823175.98 5626009624.50
II. Accumulated depreciation
1. Opening balance 437196383.75 852231647.45 22789513.75 131513650.62 1443731195.57152
Section VIII Financial Report
Electronic equipment
Items Buildings Land ownership Machinery Vehicles office equipment and Total
others
2. Increase in current period 46873263.83 87413639.97 1444872.81 15450985.79 151182762.40
(1) Provision 46873263.83 87413639.97 1444872.81 15450985.79 151182762.40
3. Decrease in current period 283316.71 18137628.55 1008099.45 8976409.90 28405454.61
(1) Disposals or
17750854.48967787.668783179.7227501821.86
retirements
Changes in exchange rate 283316.71 386774.07 40311.79 193230.18 903632.75
4. Closing balance 483786330.87 921507658.87 23226287.11 137988226.51 1566508503.36
III. Impairment allowance
1. Opening balance 43277161.98 66581288.93 1115087.82 110973538.73
2. Increase in current period 3541991.02 3541991.02
(1) Provision 3541991.02 3541991.02
3. Decrease in current period 992451.39 992451.39
(1) Disposals or
992451.39992451.39
retirements
4. Closing balance 43277161.98 69130828.56 1115087.82 113523078.36
IV. Carrying amount
1. Carrying amount at end of
2493600174.722689773.121325048817.3213919415.97110719861.653945978042.78
the period
2. Carrying amount at
1969201693.442689773.121256564630.0420557168.16105290844.053354304108.81
beginning of the period
(2) Temporarily idle fixed assets
Unit: RMB
Accumulated Impairment
Items Cost Carrying amount Notes
depreciation allowance
Not currently
Machinery 30791826.24 9259692.41 7867175.95 13664957.88
in use
Electronic equipment office Not currently
14664.8012641.282023.52
equipment and others in use
Total 30806491.04 9272333.69 7867175.95 13666981.40
(3) Fixed assets leased out under operating leases
Unit: RMB
Items Carrying amount at end of the period
Plants leased out 4198934.92153
Section VIII Financial Report
(4) Fixed assets without certificates of title
Unit: RMB
Items Carrying amount Reasons for not obtaining the certicate of title
Guanlan Winner Medical Building - Factory 221266739.54 The formalities have not yet been completed
Guanlan Winner Medical Building - Dormitory 44157039.95 The formalities have not yet been completed
Winner Medical (Wuhan) - Phase II Factory 471499836.67 The formalities have not yet been completed
Winner Medical (Jiayu) - New Factory 271803413.33 The formalities have not yet been completed
Other description
(5) Impairment testing of fixed assets
□Applicable √N/A
(6) Disposal of fixed assets
Unit: RMB
Items Closing balance Opening balance
Other description
22. Construction in progress
Unit: RMB
Items Closing balance Opening balance
Construction in progress 599316255.96 1074955450.40
Total 599316255.96 1074955450.40154
Section VIII Financial Report
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Items
Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount allowance amount allowance
Winner Medical (Jiayu)
162696599.43162696599.43426769460.94426769460.94
engineering project
Winner Medical (Shenzhen)
2791471.892791471.89190817210.35190817210.35
engineering project
Winner Medical (Hunan)
160392609.65160392609.65133036931.53133036931.53
engineering project
Longterm Medical engineering
89939308.0889939308.0875596709.2875596709.28
project
Winner Medical (Wuhan)
24659996.5924659996.5947827152.5647827152.56
engineering project
Winner Guilin engineering
23756629.4810205833.2613550796.2224761050.0910205833.2614555216.83
project
Tianmen infrastructure project 653765.22 653765.22 641726.39 641726.39
Winner Medical (Huanggang)
5333394.495333394.490.000.00
engineering project
Other equipment to be installed
139298314.39139298314.39185711042.52185711042.52
and sporadic project
Total 609522089.22 10205833.26 599316255.96 1085161283.66 10205833.26 1074955450.40
(2) Changes in significant construction in progress
Unit: RMB
Accumul
ated Including:
Engineerin
amount Amount of Current
g inputs as
Constructio of interest interest Sourc
Increase in Transfers to fixed a
Item Budgeted amount Opening balance Decrease Closing balance n progress interest eligible for capitalis e of
current period assets proportion
(%) eligible capitalisati ation funds
of the
for on for the rate
budget (%)
capitalisa period
tion
Winner Medical (Hunan)
Other
Medical Device Industrial 417300000.00 133036931.53 27355678.12 160392609.65 67.88% 80%
s
Park Project Phase I
Winner Industrial Park
(Jiayu) Project Construction Other
262940000.00227131409.0044672004.33271803413.330.00103.37%100.00%
Engineering of Workshop 1- s
4
Medical Industry Building
Other
of Winner Medical 261723960.00 188025738.46 77398041.03 265423779.49 0.00 101.41% 100.00%
s
(Shenzhen)
Mexico Longterm Other
159969529.6164767110.5815508480.6880275591.2650.18%75.00%
engineering project s
Total 1101933489.61 612961189.57 164934204.16 537227192.82 0.00 240668200.91155
Section VIII Financial Report
(3) Provision for impairment of construction in progress
Unit: RMB
Items Opening balance Increase Decrease Closing balance Reason for provision
Winner Guilin – Buildings in 1-3# Project on hold due to
10205833.2610205833.26
Workshops policy reason
Total 10205833.26 10205833.26 --
Other description
(4) Impairment testing of construction in progress
□Applicable √N/A
(5) Materials for construction
Unit: RMB
Closing balance Opening balance
Items
Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount allowance amount allowance
Other descriptions:
23. Productive biological assets
(1) Bearer biological assets measured at cost
□Applicable √N/A
(2) Impairment testing of bearer biological assets measured at cost
□Applicable √N/A
(3) Bearer biological assets measured using the fair value model
□Applicable √N/A
24. Oil and gas assets
□Applicable √N/A156
Section VIII Financial Report
25. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Items Buildings Machinery Vehicles Total
I. Cost
1. Opening balance 1008461009.53 1006008.22 3485345.53 1012952363.28
2. Increase in current period 123622651.52 123622651.52
New lease 123622651.52 0.00 0.00 123622651.52
3. Decrease in current period 118807257.00 4170.46 14448.74 118825876.20
Disposals 118143968.45 0.00 0.00 118143968.45
Changes in exchange rate 663288.55 4170.46 14448.74 681907.75
4. Closing balance 1013276404.05 1001837.76 3470896.79 1017749138.60
II. Accumulated depreciation
1. Opening balance 417397168.51 104601.86 227969.25 417729739.62
2. Increase in current period 108876723.99 312504.67 699490.72 109888719.38
(1) Provision 108876723.99 312504.67 699490.72 109888719.38
3. Decrease in current period 98379128.02 433.63 945.06 98380506.71
(1) Disposals 98356031.37 0.00 0.00 98356031.37
Changes in exchange rate 23096.65 433.63 945.06 24475.34
4. Closing balance 427894764.48 416672.90 926514.91 429237952.29
III. Impairment allowance
1. Opening balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposals
4. Closing balance
IV. Carrying amount
1. Carrying amount at end of the
585381639.57585164.862544381.88588511186.31
period
2. Carrying amount at beginning of
591063841.02901406.363257376.28595222623.66
the period
(2) Impairment testing of right-of-use assets
□Applicable √N/A
Other descriptions:157
Section VIII Financial Report
26. Intangible assets
(1) Intangible assets
Unit: RMB
Software use Client
Items Land use rights Patents Know-how Royalty Trademarks Total
rights relationships
I. Cost
1. Opening balance 585391553.32 267863690.35 122351651.77 10228226.53 151413127.04 235586649.09 1372834898.10
2. Increase in current period 304832.06 882733.33 1171176.95 2358742.34
(1) Purchases 304832.06 882733.33 1171176.95 2358742.34
(2) Internal development
(3) Increase from business
combinations
3. Decrease in current period
(1) Disposals
4. Closing balance 585391553.32 268168522.41 123234385.10 10228226.53 152584303.99 235586649.09 1375193640.44
II. Accumulated amortisation
1. Opening balance 72021779.26 70824030.06 61602198.95 10228226.53 22122452.66 40280712.37 277079399.83
2. Increase in current period 6525097.67 15426723.85 3496343.16 7676752.42 15250562.69 48375479.79
(1) Provision 6525097.67 15426723.85 3496343.16 7676752.42 15250562.69 48375479.79
3. Decrease in current period
(1) Disposals
4. Closing balance 78546876.93 86250753.91 65098542.11 10228226.53 29799205.08 55531275.06 325454879.62
III. Impairment allowance
1. Opening balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposals
4. Closing balance
IV. Carrying amount
1. Carrying amount at end of
506844676.39181917768.5058135842.99122785098.91180055374.031049738760.82
the period
2. Carrying amount at
513369774.06197039660.2960749452.82129290674.38195305936.721095755498.27
beginning of the period
Intangible assets arising from internal R&D activities at end of year account for 0.00% of the closing balance of intangible assets.158
Section VIII Financial Report
(2) Data resources recognised as intangible assets
Unit: RMB
Intangible assets of outsourced data Intangible assets of self-processed data Intangible assets of data resources otherwise
Items Total
resources resources acquired
(3) Land use rights without certificates of title
Unit: RMB
Items Carrying amount Reasons for not obtaining the certicate of title
Winner Medical (Hunan) - Phase II land for 80998384.72 The two certificates are consolidated into one and the
infusion category real estate certificate can be applied for upon completion
Other description
(4) Impairment testing of Intangible assets
□Applicable √N/A
27. Goodwill
(1) Cost of goodwill
Unit: RMB
Increase Decrease
Name of the investee or the matter that forms goodwill Opening balance Closing balance
Business combinations Disposals Exchange rate changes
Business combinations not involving entities under common
475092515.291969528.17473122987.12
control – Acquisition of GRI
Business combinations not involving entities under common
2681232.092681232.09
control – Acquisition of Winner Medical Malaysia
Business combination not involving entities under common
392686398.74392686398.74
control – Acquisition of Longterm Medical
Business combinations not involving entities under common
253215940.40253215940.40
control – Acquisition of Winner Guilin
Business combination not under common control - Acquisition of
388989258.26388989258.26
Winner Medical (Hunan)
Business combinations not involving entities under common
20397972.3320397972.33
control – Acquisition of Junjian Medical
Business combinations not involving entities under common
411644.13411644.13
control – Acquisition of Hubei Zhongfu
Total 1533474961.24 1969528.17 1531505433.07159
Section VIII Financial Report
(2) Goodwill impairment provision
Unit: RMB
Increase Decrease
Name of the investee or the matter that forms goodwill Opening balance Closing balance
Provision Disposals
Business combinations not involving entities under
common control – Acquisition of Winner Medical 2681232.09 2681232.09
Malaysia
Business combinations not involving entities under
123384750.24123384750.24
common control – Acquisition of Winner Guilin
Business combinations not involving entities under
common control – Acquisition of Winner Medical 156144473.91 156144473.91
(Hunan)
Total 282210456.24 282210456.24
(3) Information about the asset group or combination of asset groups to which goodwill belongs
Name Composition and basis of asset group or portfolio Operating segments and basis Is it consistent with previous years
Changes in asset groups or groups of asset groups
Name Composition before change Composition after change Objective facts and basis for the change
Other description
(4) Specific method for determining recoverable amount
The recoverable amount has been determined based on the fair value less costs of disposal
□Applicable √N/A
The recoverable amount has been determined based on the present value of expected future cash flows
□Applicable √N/A
Reasons for the difference between the above information and the information used in the prior year’s impairment testing or external information
Reasons for the difference between the information used in the prior year’s impairment testing and the actual situation of the current year
(5) Completion of performance commitments and impairment of goodwill
There is a performance commitment when goodwill is formed and the reporting period or the previous period is within the performance commitment
period
□Applicable √N/A
Other description160
Section VIII Financial Report
28. Long-term prepaid expenses
Unit: RMB
Items Opening balance Increase in current period Amortisation Other decrease Closing balance
Decoration expenses 88512086.02 4206250.33 14284843.31 3371654.87 75061838.17
Decoration expenses of leased
54691626.369886275.9415398170.511003994.1848175737.61
assets
Others 651431.64 124519.98 526911.66
Total 143855144.02 14092526.27 29807533.80 4375649.05 123764487.44
Other description
29. Deferred tax assets/Deferred tax liabilities
(1) Unoffset deferred tax assets
Unit: RMB
Closing balance Opening balance
Items
Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for impairment of assets 523199158.70 86229164.12 550449530.43 90418899.06
Unrealised profits from internal transactions 156081801.91 26848933.28 150436301.18 25447384.76
Tax losses 20932878.64 4101007.08 25130761.33 5703567.28
Termination benefits 2510050.48 397652.27 4853272.78 727990.92
Deferred income 177953549.44 27770847.45 157154401.72 24692720.59
Membership points 13838030.25 3459507.56 12284747.04 3071186.76
Accrued expenses 1315753.24 328938.31 15760822.19 3527287.64
Advertising expenses exceeding the tax
6468018.781617004.696468018.781617004.69
deduction limit
Deferred tax assets arising from leases 593549549.02 137135461.53 654330932.49 150868185.35
Total 1495848790.46 287888516.29 1576868787.94 306074227.05161
Section VIII Financial Report
(2) Unoffset deferred tax liabilities
Unit: RMB
Closing balance Opening balance
Items
Taxable temporary Deferred tax Taxable temporary
Deferred tax liabilities
differences liabilities differences
Appreciation of assets evaluation for business
combinations not involving entities under 759932454.12 137957477.22 802989102.65 147254914.34
common control
Changes in fair value of trading financial assets 45796383.09 6870096.93 37518003.21 5642558.53
Depreciation of fixed assets 184492991.29 27673948.69 186776801.45 28423676.90
Changes in fair value of other non-current
6673047.391000957.116673047.391000957.11
financial assets
Others 612193.94 153048.49 9174543.11 1997248.94
Deferred tax liabilities arising from leases 451363794.18 128948437.75 634023315.85 141270314.21
Total 1448870864.01 302603966.19 1677154813.66 325589670.03
(3) Deferred tax assets or liabilities presented on a net basis
Unit: RMB
Closing offset amount of Closing balance of deferred Deferred tax assets and Opening balance of
Items deferred tax assets and tax assets or liabilities after liabilities offset at the deferred tax assets or
liabilities offsetting beginning of the period liabilities after offsetting
Deferred tax assets 155721420.14 132167096.15 167073839.41 139000387.64
Deferred tax liabilities 155721420.14 146882546.05 167073839.41 158515830.62
(4) Details of unrecognised deferred tax assets
Unit: RMB
Items Closing balance Opening balance
Tax losses 311395174.16 276754326.94
Provision for impairment of assets 15374024.97 15592137.87
Total 326769199.13 292346464.81162
Section VIII Financial Report
(5) Deductible losses of unrecognised deferred tax assets will expire in the following years
Unit: RMB
Year Closing balance Opening balance Notes
202543999969.0444694974.69
202665550076.4265550076.42
202775041455.7175041455.71
202820645028.5020645028.50
202911624426.8112715543.46
203010504483.46
No maturity date 84029734.22 58107248.16
Total 311395174.16 276754326.94
Other description
30. Other non-current assets
Unit: RMB
Closing balance Opening balance
Items
Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount allowance amount allowance
Large-denomination
1864477219.751864477219.751841393117.971841393117.97
certificates of deposit
Prepayments for long-term
170438250.95170438250.95150678238.05150678238.05
assets
Buildings and land use rights
of Shenzhen Longhua 20228190.61 20228190.61 20228190.61 20228190.61
Industrial Park
Total 2055143661.31 2055143661.31 2012299546.63 2012299546.63
Other descriptions:163
Section VIII Financial Report
31. Assets with restricted ownership or use rights
Unit: RMB
The end of the period The beginning of the period
Items Restricted situation
Gross carrying Type of Gross carrying Carrying Type of
Carrying amount Restricted situation
amount restriction amount amount restriction
Further details are
Further details are includedincluded in “Notein “Note VII.1.Notes to theVII.1.Notes to the
Currency fund 45319170.56 45319170.56 Deposit 54991513.28 54991513.28 Deposit Consolidated Financial
Consolidated
Statements - Currency
Financial Statements -funds”Currency funds”
Intangible assets 75150000.00 72331875.00 Mortgage Mortgage borrowings 75150000.00 74210625.00 Mortgage
Further details areincluded in “NoteFurther details are included
XIII. Other significantin “Note XIII. Otherevents. Other
significant events. Other
important transactions
important transactions and
and matters affecting
Other non- matters affecting the
20228190.61 20228190.61 Mortgage the decision of 20228190.61 20228190.61 Mortgage
current assets decision of investors 2.investors 2. Urban
Urban Renewal Project of
Renewal Project ofWinner Industrial Park”
Winner Industrial
Shenzhen Winner-LonghuaPark” Shenzhen
Industrial Park
Winner-Longhua
Industrial Park
Fixed assets 63245722.26 35321940.04 Mortgage Mortgage borrowings 63245722.26 37056861.35 Mortgage Mortgage borrowings
Total 203943083.43 173201176.21 213615426.15 186487190.24
Other descriptions:
32. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Items Closing balance Opening balance
Mortgage borrowings 71800000.00 26000000.00
Guaranteed borrowings 78000000.00 36500000.00
Unsecured borrowings 672498678.83 491131567.12
Bills discounting 978300000.00 1415000000.00
Interest expenses on borrowings 245976.17 412597.53
Total 1800844655.00 1969044164.65
Description of classification of short-term borrowings:164
Section VIII Financial Report
(2) Overdue and unpaid short-term borrowings
The total amount of overdue and unpaid short-term loans at the end of the period is RMB0.00 of which the important overdue and unpaid short-term
loans are as follows:
Unit: RMB
Overdue interest
Borrower Closing balance Borrowing rate Overdue time
rate
Other description
33. Trading financial liabilities
Unit: RMB
Items Closing balance Opening balance
Including:
Including:
Other descriptions:
34. Derivative financial liabilities
Unit: RMB
Items Closing balance Opening balance
Other descriptions:
35. Notes payable
Unit: RMB
Items Closing balance Opening balance
Bank acceptance bills 357293200.97 431873210.11
Total 357293200.97 431873210.11
The total amount of notes payable due and unpaid at the end of the period is RMB0.00 and the reason for the overdue is.165
Section VIII Financial Report
36. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Items Closing balance Opening balance
Within 1 year inclusive 895544095.57 1119313821.66
1-2 years inclusive 40232014.14 25848505.23
2-3 years inclusive 5146588.26 5558801.55
Over 3 years 9823484.41 5209426.54
Total 950746182.38 1155930554.98
(2) Significant accounts payable aged over one year
Unit: RMB
Items Closing balance Reasons for not repaying or carrying forward
Wuxi Hongqi Textile Machinery Equipment Co. Ltd. 6625000.00 The equipment has not yet been operating stably
Other descriptions:
37. Other payables
Unit: RMB
Items Closing balance Opening balance
Dividends payable 103930651.75 164868250.80
Other payables 581576308.72 516522493.00
Total 685506960.47 681390743.80
(1) Interest payables
Unit: RMB
Items Closing balance Opening balance
Significant overdue and unpaid interest:
Unit: RMB
Borrower Overdue amount Reason for overdue166
Section VIII Financial Report
Other descriptions:
(2) Dividends payable
Unit: RMB
Items Closing balance Opening balance
Ordinary share dividends 103930651.75 164868250.80
Total 103930651.75 164868250.80
Other descriptions including significant dividends payable that have not been paid for over one year should disclose the reasons for non-payment:
(3) Other payables
1) Other payables by nature
Unit: RMB
Items Closing balance Opening balance
Deposit and guarantee 298133771.44 287382658.22
Accrued expenses such as freight 198834491.66 150720263.25
Commission 15615683.29 24724746.48
Repurchase obligations of employee stock ownership plans 6733893.01 7282100.00
Ultra-long-term government bond funding support Note 1* 11113000.00
Others 51145469.32 46412725.05
Total 581576308.72 516522493.00
Note 1* Government subsidies from ultra-long-term bonds issued to support equipment renewal in key sectors
2) Significant other payables aged over one year or overdue
Unit: RMB
Items Closing balance Reasons for not repaying or carrying forward
Other description167
Section VIII Financial Report
38. Receipts in advance
(1) Presentation of advance from customers
Unit: RMB
Items Closing balance Opening balance
(2) Important advances from customers with the aging more than 1 year or past due
Unit: RMB
Reasons for not repaying or carrying
Items Closing balance
forward
Unit: RMB
Items Change amount Reasons for changes
39. Contract liabilities
Unit: RMB
Items Closing balance Opening balance
Consideration received from customers 154274136.60 170470757.56
Membership points 13838030.25 12284747.04
Total 168112166.85 182755504.60
Significant contract liabilities aged over one year
Unit: RMB
Reasons for not repaying or carrying
Items Closing balance
forward
Amount and reasons for significant changes in book value during the reporting period
Unit: RMB
Items Change amount Reasons for changes168
Section VIII Financial Report
40. Employee benefits payable
(1) Presentation of employee benefits payable
Unit: RMB
Items Opening balance Increase Decrease Closing balance
I. Short-term employee benefits 296771630.90 914085771.12 983639935.12 227217466.90
II. Post-employment benefits – defined
7319702.8775372904.7175208861.827483745.76
contribution plan
III. Termination benefits 4863743.12 12849878.44 13962264.74 3751356.82
Total 308955076.89 1002308554.27 1072811061.68 238452569.48
(2) Presentation of short-term employee benefits
Unit: RMB
Items Opening balance Increase Decrease Closing balance
1. Wages or salaries bonuses allowances
293225971.68846016743.76914372201.38224870514.06
and subsidies
2. Staff welfare 1894913.55 9877352.48 11066462.67 705803.36
3. Social security contributions 429126.80 35731188.49 35698935.77 461379.52
Including: Medical insurance 253035.89 30088084.69 30089659.39 251461.19
Work injury insurance 123469.83 3151230.89 3117242.24 157458.48
Maternity insurance 52621.08 2491872.91 2492034.14 52459.85
4. Housing funds 114198.00 18717796.49 18813023.49 18971.00
5. Union running costs and employee
691638.921138016.901086230.59743425.23
education costs
8. Others 415781.95 2604673.00 2603081.22 417373.73
Total 296771630.90 914085771.12 983639935.12 227217466.90
(3) Presentation of defined contribution plans
Unit: RMB
Items Opening balance Increase Decrease Closing balance
1. Basic pension insurance 7213732.45 72370346.53 72239221.56 7344857.42
2. Unemployment insurance 105970.42 3002558.18 2969640.26 138888.34
Total 7319702.87 75372904.71 75208861.82 7483745.76
Other descriptions:169
Section VIII Financial Report
41. Taxes and surcharges payable
Unit: RMB
Items Closing balance Opening balance
Value-added tax (VAT) 30573206.60 17598731.48
Corporate income tax (CIT) 66224636.11 82323661.99
Individual income tax 3521936.14 8002053.24
Urban maintenance and construction tax 2341707.58 2729715.85
Property tax 5131254.67 7165168.93
Education surcharges and local education surcharges 1867958.16 2088623.81
Land use tax 1518078.05 1839746.31
Stamp duty 1055060.86 1802649.39
Others 71530.01 80223.88
Total 112305368.18 123630574.88
Other description
42. Liabilities classified as held for sale
Unit: RMB
Items Closing balance Opening balance
Other description
43. Non-current liabilities due within one year
Unit: RMB
Items Closing balance Opening balance
Current portion of long-term borrowings 175108600.02
Current portion of long-term payables 6017646.86
Current portion of lease liabilities 205900865.33 215052996.79
Current portion of long-term employee benefits payable 273638.74 589000.00
Total 206174504.07 396768243.67
Other descriptions:170
Section VIII Financial Report
44. Other current liabilities
Unit: RMB
Items Closing balance Opening balance
Refunds payable 1315753.24 1983029.26
Output tax to be transferred 19549578.95 19252019.32
Total 20865332.19 21235048.58
Increase or decrease in short-term bonds payable:
Unit: RMB
Issuance in Amortization Repayment
Par Date of Amount Opening Closing Default or
Bond name Coupon rate Bond term current Interest at par of prot and in current
value issue issued balance balance not
period discount period
Total
Other descriptions:
45. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Items Closing balance Opening balance
Mortgage borrowings 50000000.00 50000000.00
Unsecured borrowings 3000000.00
Total 50000000.00 53000000.00
Description of classification of long – term borrowings:
Note: In November 2024 Winner Medical (Hunan) entered into a loan agreement with China Construction Bank Corporation Lixian Branch for
RMB65000000.00 of which RMB50000000.00 has been withdrawn. The loan has a term of 60 months and matures in November 2032. The collateral
is real estate.Other descriptions including interest rate ranges:171
Section VIII Financial Report
46. Bonds payable
(1) Bonds payable
Unit: RMB
Items Closing balance Opening balance
(2) Increase or decrease in bonds payable (excluding preference shares perpetual bonds and other financial instruments classified as financial
liabilities)
Unit: RMB
Issuance in Amortization Repayment
Par Coupon Date of Amount Opening Closing Default or
Bond name Bond term current Interest at par of prot and in current
value rate issue issued balance balance not
period discount period
Total
(3) Description of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilities
Basic information of preference shares perpetual bonds and other financial instruments issued at the end of the period
Changes in preference shares perpetual bonds and other financial instruments issued at the end of the period
Unit: RMB
The beginning of the period Increase Decrease The end of the period
Financial instrument
outstanding Carrying Carrying
Number Number Carrying amount Number Carrying amount Number
amount amount
Description of the basis for classification of other financial instruments as financial liabilities
Other description
47. Lease liabilities
Unit: RMB
Items Closing balance Opening balance
Lease payments 635174421.28 655929649.12
Current portion of lease liabilities -222260731.08 -215052996.79
Total 412913690.20 440876652.33
Other description172
Section VIII Financial Report
48. Long-term payables
Unit: RMB
Items Closing balance Opening balance
Long-term payables 26483360.45 48544431.64
Total 26483360.45 48544431.64
(1) Long-term payables by nature
Unit: RMB
Items Closing balance Opening balance
Borrowings from third parties (Note 1) 27669539.31
Borrowings from related parties outside the scope of group consolidation
26483360.4526892539.19
(Note 2)
Less: Long-term payables due within one year 6017646.86
Total 26483360.45 48544431.64
Other descriptions:
Note 1: It represents a third-party loan obtained by ETI Services Inc. a subsidiary of GRI with a principal amount of USD3849193.05 (equivalent to
RMB27669539.31) with an annual interest rate of 6%. This loan was fully repaid during the current period.Note 2: It represents an interest-free loan from the controlling shareholder – Winner Group Limited to Pan-China (H.K.) with a principal amount of
CAD6000000.00 (equivalent to RMB32094498.00). The loan term extends from 1 September 2024 to 31 August 2029. After accounting for
discounting effects the recognised loan amount is RMB26892539.19. The difference of RMB5201958.81 has been recorded as an equity transaction in
other capital reserves for 2024. Exchange rate fluctuations during the period resulted in an adjustment of -RMB409178.74 bringing the closing balance
to RMB26483360.45.
(2) Special payables
Unit: RMB
Items Opening balance Increase Decrease Closing balance Reason
Other descriptions:173
Section VIII Financial Report
49. Long-term employee benefits payable
(1) Table of long-term employee benefits payable
Unit: RMB
Items Closing balance Opening balance
I Post-employment benefits – Net defined benefit liability 9307638.74 9623000.00
Current portion of long-term employee benefits payable -273638.74 -589000.00
Deferred compensation Note 1* 4972037.56 4213971.34
Total 14006037.56 13247971.34
Note 1* Deferred compensation represents GRI’s practice of deferring a specified percentage of certain employees’ compensation for payment upon their retirement.
(2) Changes in defined benefit obligations
Changes in the present value of defined benefit obligations are as follows:
Unit: RMB
Items Amount for the current period Amount for the last period
Plan assets:
Unit: RMB
Items Amount for the current period Amount for the last period
Net defined benefit liability/(asset)
Unit: RMB
Items Amount for the current period Amount for the last 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 descriptions:174
Section VIII Financial Report
50. Provisions
Unit: RMB
Items Closing balance Opening balance Reason
Other descriptions including relevant important assumptions and estimation descriptions of important provisions:
51. Deferred income
Unit: RMB
Items Opening balance Increase Decrease Closing balance Reason
Government grants related
Government grants 157154401.72 27198600.00 6399452.28 177953549.44
to assets
Total 157154401.72 27198600.00 6399452.28 177953549.44
Other descriptions:
52. Other non-current liabilities
Unit: RMB
Items Closing balance Opening balance
GRI remaining equity forward purchase obligations 373262348.97 373262348.97
Total 373262348.97 373262348.97
Other descriptions:
In September 2024 the Company acquired 75.2% equity interest in GRI. Pursuant to the share purchase agreement the Company assumed a forward
purchase obligation to acquire the remaining 24.8% minority interests. This obligation represents a nondiscretionary repurchase liability that cannot be
unconditionally avoided. Accordingly the Company initially recognised this repurchase obligation as a financial liability at the present value of the
required settlement amount with subsequent measurement at fair value in accordance with applicable accounting standards.
53. Share capital
Unit: RMB
Increase or decrease (+ -)
Opening balance Closing balance
New issue of Bonus Share conversion from
Others Sub-total
shares issuance capital reserves
Total number of
582329808.00582329808.00
shares
Other descriptions:175
Section VIII Financial Report
54. Other equity investments
(1) Basic information of preference shares perpetual bonds and other financial instruments issued at the end of the period
(2) Changes in preference shares perpetual bonds and other financial instruments issued at the end of the period
Unit: RMB
The beginning of the period Increase Decrease The end of the period
Financial instrument
outstanding Carrying Carrying Carrying Carrying
Number Number Number Number
amount amount amount amount
Changes in other equity instruments in the current period explanation of the reasons for the changes and the basis for relevant accounting treatment:
Other descriptions:
55. Capital reserves
Unit: RMB
Items Opening balance Increase Decrease Closing balance
Capital premium (share premium) 3247712887.01 3247712887.01
Other capital reserves 130827227.99 27348053.65 158175281.64
Total 3378540115.00 27348053.65 3405888168.65
Other descriptions including the changes in the current period and the reasons for the changes:
Note 1: The increase in other capital reserves during the current year was primarily due to the recognition of aggregate incentive expenses of
RMB27348053.65 related to the implementation of the 2023 and 2024 employee stock ownership plans
56. Treasury shares
Unit: RMB
Items Opening balance Increase Decrease Closing balance
Treasury shares 7282100.00 88375.00 7193725.00
Total 7282100.00 88375.00 7193725.00
Other descriptions including the changes in the current period and the reasons for the changes:
In accordance with the resolution passed at the 2024 Shareholders' Meeting held on 21 May 2025 the Company's total share capital is 582329808 shares
with a cash dividend of RMB2.50 per 10 shares (tax inclusive) distributed to all shareholders. The restricted stock dividend resulted in a decrease of
RMB88375.00 in treasury stock.176
Section VIII Financial Report
57. Other comprehensive income
Unit: RMB
Amount for the current period
Less:
Amount Less: Reclassication
Reclassication Attributable to
Items Opening balance incurred before from other Less: Attributable to Closing balance
from other non-controlling
income tax in comprehensive Income tax parent company
comprehensive interests after
the current income to retained expenses after tax
income to prot or tax
period earnings
loss
I. Other comprehensive income
that will not be reclassified to -378274.91 -378274.91
profit or loss
Including: Remeasurement of a
-378274.91-378274.91
defined benefit plan
II. Other comprehensive income
that may be reclassified to profit -2259552.19 2654748.45 -2122693.34 4777441.79 -4382245.53
or loss
Exchange differences on
translation of foreign currency -2259552.19 2654748.45 -2122693.34 4777441.79 -4382245.53
financial statements
Total other comprehensive
-2637827.102654748.45-2122693.344777441.79-4760520.44
income
Other descriptions including the adjustment to the amount initially recognised when the effective portion of the profit or loss on the cash flow hedge is
transferred to the hedged item:
58. Specialised reserves
Unit: RMB
Items Opening balance Increase Decrease Closing balance
Other descriptions including the changes in the current period and the reasons for the changes:
59. Surplus reserves
Unit: RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserves 420212778.13 420212778.13
Total 420212778.13 420212778.13
Description of surplus reserves including changes in the current period and reasons for changes:177
Section VIII Financial Report
60. Unappropriated profit
Unit: RMB
Items Current period Last period
Undistributed profit at the end of previous period before
6780116870.536608834768.99
adjustment
Undistributed profits at the beginning of the period after
6780116870.536608834768.99
adjustment
Add: Net profit attributable to owners of the parent company in
491998009.07384150379.21
the current period
Dividends payable on common stock 145582452.00 291164904.00
Undistributed profits at the end of the period 7126532427.60 6701820244.20
Details of undistributed profits at the beginning of the adjustment period:
1). Due to retrospective adjustment of Accounting Standards for Business Enterprises and related new regulations the undistributed profit at the
beginning of the period is RMB0.00.
2). Due to the change of accounting policy the undistributed profit at the beginning of the period is RMB0.00.
3). Due to the correction of major accounting errors the undistributed profit at the beginning of the period is affected by RMB0.00.
4). Changes in the scope of consolidation due to the same control affect the opening undistributed profit of RMB0.00.
5). The total impact of other adjustments on the opening undistributed profit is RMB0.00.
61. Revenue and cost of sales
Unit: RMB
Amount for the current period Amount for the last period
Items
Revenue Cost Revenue Cost
Primary business 5260562564.63 2710598502.93 4000365794.92 2047427786.26
Other businesses 35649392.29 25796277.79 33139309.41 21042656.32
Total 5296211956.92 2736394780.72 4033505104.33 2068470442.58178
Section VIII Financial Report
Breakdown of revenue and cost of sales:
Unit: RMB
Segment 1 Segment 2 Medical consumables Healthy consumer goods Total
Operating Operating Operating Operating Operating Operating
Contract classication Operating revenue Operating cost Operating cost Operating cost
revenue cost revenue cost revenue revenue
2745307551.81135736241.25296211956.92736394780.7
Business type 2550904405.05 1600658539.50
7222
Including:
2745307551.81135736241.25260562564.62710598502.9
Primary business 2515255012.76 1574862261.71
7233
Other businesses 35649392.29 25796277.79 35649392.29 25796277.79
Classification by region of 2745307551.8 1135736241.2 5296211956.9 2736394780.7
2550904405.051600658539.50
operation 7 2 2 2
Including:
2745307551.81135736241.23759674966.41772578718.5
Domestic sales 1014367414.61 636842477.34
7286
1536536990.4
Overseas 1536536990.44 963816062.16 963816062.16
4
Market or customer type
Including:
Contract type
Including:
Classification by time of goods
transfer
Including:
Classification by contract term
Including:
Classification by sales channel
Including:
Total
Information relating to performance obligations:
Nature of the
Types of quality
goods that the
Time of fullling performance Signicant payment Whether it is Returns refunds and assurance provided by
Items entity has
obligations terms a principal other similar obligations the Company and
promised to
related obligations
transfer
Other description179
Section VIII Financial Report
Information relating to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue related to performance obligations that have been contracted but not yet performed or partially
performed is RMB0.00. Of this amount: RMB0.00 is expected to be recognised in YYYY and RMB0.00 is expected to be recognised in YYYY.Information about variable consideration in the contract:
Significant contract changes or significant transaction price adjustments
Unit: RMB
Items Accounting treatment Amount affected on revenue
Other description
62. Taxes and surcharges
Unit: RMB
Items Amount for the current period Amount for the last period
Urban maintenance and construction tax 16943704.74 12232083.46
Education surcharge 7700584.35 5524309.32
Property tax 10314447.25 9072652.85
Land use tax 3200049.68 3825434.01
Stamp duty 3735171.94 2246687.40
Local education surcharge 5146119.47 3682872.65
Others 166588.15 72239.43
Total 47206665.58 36656279.12
Other descriptions:180
Section VIII Financial Report
63. Administrative expenses
Unit: RMB
Items Amount for the current period Amount for the last period
Employee benefits 251518957.88 167526769.22
Depreciation and amortisation expenses 100415385.08 85253977.21
Consulting and intermediary service fees 18381220.78 6336530.64
Maintenance and repair expenses 5007138.76 13992875.34
Communication and network services cloud service fees etc. 12101926.68 9159179.36
Utility bills 5659637.32 5008979.02
Material consumption 3919752.37 2497021.75
Travel expenses 3583340.61 2413859.67
Office expenses 8549393.50 1330225.54
Others 27036373.74 15926608.65
Total 436173126.72 309446026.40
Other description
64. Selling expenses
Unit: RMB
Items Amount for the current period Amount for the last period
Employee benefits 351756153.04 308895689.06
Travel expenses 15038995.11 11089494.35
Office communication expenses 8503507.92 6712347.78
Sales commissions and charges by E-commerce platform 144526632.13 150321611.77
Depreciation and amortisation 121179518.36 117958551.43
Advertising and promotion expenses 501245493.81 339609578.47
Lease and property management fees 68438212.02 76942306.30
Others 44215140.42 44211505.06
Total 1254903652.81 1055741084.22
Other descriptions:181
Section VIII Financial Report
65. Research and development expenses
Unit: RMB
Items Amount for the current period Amount for the last period
Employee benefits 90467325.35 73541069.28
Depreciation and amortisation 11527447.14 10391587.90
Materials 37106947.90 28030881.87
Other miscellaneous expenses 55275846.51 31179413.28
Total 194377566.90 143142952.33
Other description
66. Finance expenses
Unit: RMB
Items Amount for the current period Amount for the last period
Interest expenses 32211146.81 24015659.66
Including: Interest expense on lease liabilities 11474345.41 11651258.00
Less: Interest income 40152719.55 57012846.01
Exchange gains or losses -4046409.42 -5279738.42
Others 655601.21 834384.93
Total -11332380.95 -37442539.84
Other description
67. Other revenue
Unit: RMB
Items Amount for the current period Amount for the last period
Government grants 29417982.09 22618569.68
Tax credits and exemptions 15105319.97 14664363.42
Total 44523302.06 37282933.10182
Section VIII Financial Report
68. Net position hedging gains
Unit: RMB
Items Amount for the current period Amount for the last period
Other description
69. Fair value gains
Unit: RMB
Items Amount for the current period Amount for the last period
Bank financial products and trust products 8043719.46 7577712.84
Total 8043719.46 7577712.84
Other descriptions:
70. Investment income
Unit: RMB
Items Amount for the current period Amount for the last period
Long-term equity investment income under the equity method -12839023.48 -7669213.76
Investment income from purchasing financial products 23089639.93 41114309.95
Total 10250616.45 33445096.19
Other description
71. Credit impairment loss
Unit: RMB
Items Amount for the current period Amount for the last period
Impairment loss for accounts receivable -11702418.09 -7704855.99
Impairment loss for other receivables 465138.14 -590961.45
Impairment loss for long-term receivables -260524.10
Total -11497804.05 -8295817.44
Other description183
Section VIII Financial Report
72. Impairment losses of assets
Unit: RMB
Items Amount for the current period Amount for the last period
I. Loss for write-down of inventories and impairment loss for
-28797662.46-55628797.66
costs to fulfil a contract
II. Impairment loss for fixed assets -3504483.05 -346705.50
III. Others 40880.55
Total -32261264.96 -55975503.16
Other descriptions:
The others are impairment losses on prepaid accounts
73. Gains on disposal of assets
Unit: RMB
Items Amount for the current period Amount for the last period
Net gain or loss on disposal of long-term assets 1518248.05 1930800.28
74. Non-operating revenue
Unit: RMB
Amount for the current Amount for the last Included in the non-recurring prot or loss
Items
period period in the current period
Government grants 182000.00 3000.00 182000.00
Income from compensation or fines 444471.56 396911.10 444471.56
Gains on retirement of non-current assets 146846.93 989144.70 146846.93
Others 2208547.64 4754300.71 2208547.64
Total 2981866.13 6143356.51 2981866.13
Other descriptions:184
Section VIII Financial Report
75. Non-operating expense
Unit: RMB
Amount for the current Amount for the last Included in the non-recurring prot or loss
Items
period period in the current period
External donations 1867517.79 14646.56 1867517.79
Losses on damage and retirement of non-current assets 8519605.93 5451144.32 8519605.93
Compensation or amercement outlay 4189848.71 285600.58 4189848.71
Others 1841351.15 466768.55 1841351.15
Total 16418323.58 6218160.01 16418323.58
Other descriptions:
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Items Amount for the current period Amount for the last period
Current tax 132152672.92 59844908.34
Deferred tax -4711231.02 7306141.90
Total 127441441.90 67151050.24
(2) Accounting profit and income tax expense adjustment process
(3) Unit: RMB
Items Amount for the current period
Profit before income tax 645628904.70
Tax at the statutory/applicable tax rate 96844335.71
Effect of different tax rates for subsidiaries 23299986.45
Effect of adjustments in respect of tax of previous periods 11378012.84
Effect of income not subject to tax -842165.74
Effect of costs expenses and losses not deductible for tax 1143572.00
Effect of tax losses for which deferred tax assets were not recognised in prior periods -1011340.68
Effect of deductible temporary differences or tax losses for which deferred tax assets were not recognised in
10682999.93
the current period
Effect of additional deductions for research and development expenses -19006404.29
Impact of Share-based Payment in Current Period 4998441.60
Impact of weighted deduction of wages for the disabled -45995.92
Income tax expenses 127441441.90
Other descriptions:185
Section VIII Financial Report
77. Other comprehensive income
Refer to Note 57. Other comprehensive income for details.
78. Items of the statement of cash flows
(1) Cash payments relating to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Items Amount for the current period Amount for the last period
Guarantee deposit deposit and quality guarantee deposit
50106046.0715819980.09
received
Interest income received 11503565.45 12258055.28
Government grants received 76617449.78 17870988.05
Others 17565207.69 9945725.42
Total 155792268.99 55894748.84
Descriptions of other cash receipts relating to operating activities:
Other cash payments relating to operating activities
Unit: RMB
Items Amount for the current period Amount for the last period
Management and R&D costs paid in cash 95577535.04 79791733.60
Selling expenses paid in cash 126907306.06 136729766.24
Deposit guarantee deposit and quality guarantee deposit paid 18713013.96 20215667.66
Bank handling charge 655601.21 834384.92
Others 96564124.15 109911168.01
Total 338417580.42 347482720.43
Description of other cash payments relating to operating activities:186
Section VIII Financial Report
(2) Cash relating to investing activities
Other cash receipts relating to investing activities
Unit: RMB
Items Amount for the current period Amount for the last period
Cash receipts relating to significant investing activities
Unit: RMB
Items Amount for the current period Amount for the last period
Description of other cash received relating to investing activities:
Other cash payments relating to investing activities
Unit: RMB
Items Amount for the current period Amount for the last period
Significant cash payments relating to investing activities
Unit: RMB
Items Amount for the current period Amount for the last period
Description of other cash payments relating to investing activities:
(3) Cash related to financing activities
Other cash receipts relating to financing activities
Unit: RMB
Items Amount for the current period Amount for the last period
L/C loan deposit recovered 180000000.00
Total 180000000.00
Description of other cash received relating to financing activities:187
Section VIII Financial Report
Other cash payments relating to financing activities
Unit: RMB
Items Amount for the current period Amount for the last period
Principal and interest paid on lease liabilities 142325856.76 113647443.24
Treasury shares repurchase paid 194981835.21
Guarantee deposit paid on bills and letters of credit (for
27651448.110.00
financing purposes)
Total 169977304.87 308629278.45
Description of other cash payments relating to financing activities:
Changes in various liabilities arising from financing activities
√Applicable □N/A
Unit: RMB
Increase Decrease
Items Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Short-term
1969044164.651443534035.413292170.401615025715.461800844655.00
borrowings
Dividends
164868250.80145637011.00206574610.05103930651.75
payable
Long-term
48544431.6421651892.46409178.7326483360.45
payables
Non-current
liabilities due 396768243.67 133173725.30 323767464.90 206174504.07
within one year
Long-term
53000000.003000000.0050000000.00
borrowings
Lease liabilities 440876652.33 27962962.13 412913690.20
Total 3073101743.09 1443534035.41 282102906.70 2170019682.87 28372140.86 2600346861.47
(4) Description of cash flows presented on a net basis
Items Relevant facts Basis for presentation on a net basis Financial impact
(5) Significant activities and financial effects that do not involve current cash receipts and payments but affect the financial position of the
enterprise or may affect the cash flow of the enterprise in the future188
Section VIII Financial Report
79. Supplemental information for the statement of cash flows
(1) Supplemental information for the statement of cash flows
Unit: RMB
Supplemental information Amount for the current period Amount for the last period
1. Reconciliation of profit to net cash flows from operating activities
Net profit 518187462.80 406230227.59
Add: Provisions for asset impairment 43759069.01 64271320.60
Depreciation of fixed assets depletion of oil and gas assets depreciation
151182762.40131079340.88
of productive biological assets
Depreciation of right-of-use assets 109888719.38 102793692.82
Amortisation of intangible assets 48375479.79 37516560.07
Amortisation of long-term prepaid expenses 29807533.80 28616313.68
Losses on disposal of fixed assets intangible assets and other long-term
-1518248.05-1930800.28
assets (Gains are indicated by “-”)
Losses on retirement of fixed assets (Gains are indicated by “-”) 8372759.00 4461999.62
Losses from changes in fair value (Gains are indicated by “-”) -8043719.46 -7577712.84
Losses from changes in fair value (Gains are indicated by “-”) -3561992.71 -30678568.15
Investment losses (Gains are indicated by “-”) -10250616.45 -33445096.19
Decrease in deferred income tax assets (Increase is indicated by “-”) 6833291.49 13627828.25
Increase in deferred tax liabilities (Decrease is indicated by “-”) -11633284.57 -6322317.19
Decrease in inventories (increase is indicated by “-”) -38054042.96 -74485225.30
Decrease in operating receivables (increase is indicated by “-”) -271120354.80 -125258959.44
Increase in operating payables (Decrease is indicated by “-”) -253098192.32 -313349779.33
Others 20799147.72 -2215308.03
Net cash ows from operating activities 339925774.07 193333516.76
2. Significant investing and financing activities not involving cash receipts
and payments:
Debts converted to capital
Convertible corporate bonds due within one year
Fixed assets under finance leases
3. Net change in cash and cash equivalents:
Closing balance of cash 1487086387.91 3893999245.96
Less: Opening balance of cash 1357097385.35 4677340782.45
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 129989002.56 -783341536.49189
Section VIII Financial Report
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other descriptions:
(3) Net cash received from disposal of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other descriptions:
(4) Composition of cash and cash equivalents
Unit: RMB
Items Amount for the current period Amount for the last period
I. Cash 1487086387.91 1357097385.35
Including: Cash on hand 156754.00 152838.15
Bank deposits on demand 1468255959.55 1348440889.85
Other currency funds on demand 18673674.36 8503657.35
III. Closing balance of cash and cash equivalents 1487086387.91 1357097385.35
(5) Limited scope of use but still classified as cash and cash equivalents
Unit: RMB
Amount for the prior Reason for remaining cash and cash
Items Amount for the period
period equivalents190
Section VIII Financial Report
(6) Currency funds that do not belong to cash and cash equivalents
Unit: RMB
Amount for the prior Reasons for not being classied as cash and
Items Amount for the period
period cash equivalents
Other descriptions:
(7) Description of other significant activities
80. Notes to items in the statement of changes in equity
Description of “Other” items and adjustment amount that adjust the ending balance of the previous year:
81. Monetary items measured in a foreign currency
(1) Monetary items measured in a foreign currency
Unit: RMB
Items Closing foreign currency balance Translation exchange rate Closing balance in RMB
Currency fund 607068275.94
Including: USD 76582444.05 7.1586 548223083.98
Euro 3134124.98 8.4024 26334171.69
HKD 27288193.88 0.91195 24885468.40
JPY 45147450.00 0.049594 2239042.64
GBP 547955.26 9.83 5386400.17
CAD 20.83 5.2358 109.06
Accounts receivable 324453853.18
Including: USD 43283817.19 7.1586 309851533.75
Euro 1231391.09 8.4024 10346640.52
HKD 3881.78 0.91195 3539.99
GBP 416323.00 9.83 4092455.07
CAD 29680.09 5.2358 155399.02
JPY 86398.32 0.049594 4284.84
Other receivables 7.1586 5178214.47
USD 723355.75 7.1586 5178214.47191
Section VIII Financial Report
Items Closing foreign currency balance Translation exchange rate Closing balance in RMB
Accounts payable 30002056.28
USD 3799581.71 7.1586 27199685.63
Euro 333520.26 8.4024 2802370.65
Other payables 30538929.02
USD 4180018.35 7.1586 29923079.36
HKD 503359.77 0.91195 459038.94
Euro 18662.61 8.4024 156810.71
Long-term borrowings
Including: USD
Euro
HKD
Other descriptions:
(2) Description of overseas operating entities including for important overseas operating entities disclosure of their main overseas business
locations functional currency and selection basis and disclosure of reasons for changes in functional currency.√Applicable □N/A
The important overseas operating entities included in the consolidated financial statements of the Company are the Company’s subsidiaries GRI USA
Alleset Inc GRI Alleset and GRI VN. Their main overseas places of business are located in the United States Hong Kong Vietnam etc. Each operating
entity takes the currency used in its principle business activities as the functional currency for accounting purposes. In 2025 there were no changes to the
functional currencies used for accounting by the above-mentioned important overseas operating entities.
82. Leases
(1) The Company as lessee
√Applicable □N/A
Variable lease payments not included in the measurement of the lease liabilities
√Applicable □N/A
Items January-June 2025
Interest expense on lease liabilities 11474345.41
Expenses relating to short-term leases that are included in costs of related assets or profit or loss and
12932952.22
accounted for applying practical expedients
Variable lease payments that are included in costs of related assets or profit or loss and not included in the
7457579.11
measurement of lease liabilities
Cash outflow from fixed lease payments 142325856.76
Total cash outflow for leases 162716388.09192
Section VIII Financial Report
The Company has lease contracts for various items of houses and buildings machinery and vehicles used in its operations. Leases of houses and
buildings and machinery generally have lease terms of 1-15 years while those of vehicles generally have lease terms of 5-6 years.Lease payments on short-term leases and leases of low-value assets applying practical expedients
√Applicable □N/A
Please refer to the table above for details
Leases involving sale and leaseback transactions
(2) The Company as lessor
Operating leases – the Company as lessor
√Applicable □N/A
Unit: RMB
Including: Income relating to variable lease payments not included in the
Items Rental income
lease receivables
Rental income 91743.12 0.00
Total 91743.12 0.00
Finance leases – the Company as lessor
□Applicable √N/A
Annual undiscounted lease receivables for the next five years
□Applicable √N/A
Reconciliation between undiscounted lease receivables and net investment in the lease
(3) Selling profit or loss recognised by the Company on finance leases as a manufacturer or dealer
□Applicable √N/A
83. Data resources
84. Others193
Section VIII Financial Report
VIII. Research and Development Expenditure
Unit: RMB
Items Amount for the current period Amount for the last period
Employee benefits 90467325.35 73541069.28
Depreciation and amortisation 11527447.14 10391587.90
Materials 37106947.90 28030881.87
Other miscellaneous expenses 55275846.51 31179413.28
Total 194377566.90 143142952.33
Including: Research and development expenditure expensed as
194377566.90143142952.33
incurred
1. Research and development items eligible for capitalisation
Unit: RMB
Increase in current period Decrease in current period
Items Opening balance Closing balance
Internal development Recognised as intangible Transferred to prot
Others
expenditures assets or loss
Total
Significant capitalised research and development items
Research and Specic basis for
Estimated completion How economic benets is Commencement date of
Items development commencement of
date expected to be generated capitalisation
progress capitalisation
Provision for impairment of development expenditures
Unit: RMB
Items Opening balance Increase Decrease Closing balance Impairment test
2. Important outsourced research projects
Judgment criteria and specic basis for capitalisation or
Item How economic benets are expected to be generated
being expensed
Other descriptions:194
Section VIII Financial Report
IX. Changes in the Scope of Consolidation
1. Business combination not involving entities under common control
(1) Business combination not involving entities under common control for the period
Unit: RMB
Name of Time of Cost of Equity Method Acquisiti Basis for Revenue of the Prot of the acquiree Cash ows of the
the equity equity acquisitio of equity on date determinatio acquiree from the from the acquisition acquiree from the
acquiree acquisitio acquisitio n ratio acquisitio n of acquisition date to the date to the end of the acquisition date to
n n (%) n acquisition end of the period period the end of the period
date
Other descriptions:
There were no business combinations not under common control during the current period
(2) Cost of the combination and goodwill
Unit: RMB
Cost of the combination
- Cash
- Fair value of non-cash assets
- Fair value of debt issued or assumed
- Fair value of equity securities issued
- Fair value of the contingent consideration
- Fair value of equity interest held before the acquisition date
- Others
Total cost of the combination
Less: Interest in the fair value of the net identifiable assets acquired
Excess of interest in the fair value of the net identifiable assets acquired over goodwill/cost of the combination
Basis for determining the fair value of the cost of the combination:
Disclosure of contingent consideration and the related changes
Main reasons for the formation of large goodwill:
Other descriptions:195
Section VIII Financial Report
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Unit: RMB
Fair value at the acquisition date Carrying amount at the acquisition date
Assets:
Currency fund
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Deferred tax liabilities
Net assets
Less: Non-controlling interests
Net assets acquired
Methods for determining the fair values of identifiable assets and liabilities:
Contingent liabilities of the acquiree assumed in a business combination:
Other descriptions:
(4) Gains or losses recognised as a result of remeasuring to fair value the equity interest held before the business combination
Whether there are cases where business combinations are achieved in stages with the control being obtained during the reporting period
□Yes √No
(5) Description regarding the combination consideration or fair value of the acquiree's identifiable assets and liabilities that cannot be
reasonably determined at the acquisition date or at the end of the current period
(6) Other description196
Section VIII Financial Report
2. Business combination involving entities under common control
(1) Business combination involving entities under common control during the period
Unit: RMB
Basis for Revenue of the Prot of the entity
Prot of the
Proportion constituting a entity being being absorbed
Basis for Revenue of the entity being
of interest business absorbed from the from the
Name of the determining entity being absorbed
acquired in a combination Combinat beginning of the beginning of the
entity being the absorbed during during the
business involving ion date period in which period in which
absorbed combination the comparative comparative
combination entities under the combination the combination
date accounting period accounting
(%) common occurs to the occurs to the
period
control combination date combination date
Other descriptions:
There were no business combinations under common control during the current period
(2) Cost of the combination
Unit: RMB
Cost of the combination
- Cash
- Carrying amount of non-cash assets
- Carrying amount of debt issued or assumed
- Face value of equity securities issued
- Contingent consideration
Disclosure of contingent consideration and the related changes:
Other descriptions:197
Section VIII Financial Report
(3) Carrying amount of assets and liabilities of the entity being absorbed on the combination date
Unit: RMB
Combination date At end of the prior period
Assets:
Currency fund
Accounts receivable
Inventories
Fixed assets
Intangible assets
Liabilities:
Borrowings
Accounts payable
Net assets
Less: Non-controlling interests
Net assets acquired
Contingent liabilities of the entity being absorbed assumed in a business combination:
Other descriptions:
3. Reverse acquisitions
Basic information of the transaction the basis for the transaction to constitute a reverse acquisition whether the assets and liabilities retained by the listed
company constitute a business and the related basis the determination of the cost of the combination the amount of equity adjustment when accounted
for as an equity transaction and the related calculation:
N/A
4. Disposal of a subsidiary
Whether there are transactions or events that result in the loss of control over subsidiaries in the current period
□Yes √No
Whether there is disposal of a subsidiary in stages in a bundled transaction with a loss of control in the current period
□Yes √No198
Section VIII Financial Report
5. Changes in scope of consolidation for other reasons
Disclose the changes in the scope of consolidation (e.g. new subsidiaries liquidation of subsidiaries) due to other reasons and the relevant information:
None
6. Others
None
X. Interests in Other Entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Unit: RMB
Proportion of ownership
Name of the interest (%) Method of
Registered capital Place of business Registered address Nature of business
subsidiary acquisition
Direct Indirect
Shenzhen City
Shenzhen City
Shenzhen Purcotton 130000000.00 Guangdong Sale of Purcotton products 100.00% 0.00% Establishment
Guangdong Province
Province
Beijing Purcotton 3000000.00 Beijing Beijing Sale of Purcotton products 0.00% 100.00% Establishment
Guangzhou City
Guangzhou Guangzhou City
1000000.00 Guangdong Sale of Purcotton products 0.00% 100.00% Establishment
Purcotton Guangdong Province
Province
Shanghai Purcotton 3000000.00 Shanghai Shanghai Sale of Purcotton products 0.00% 100.00% Establishment
Shenzhen City
Shenzhen City
Qianhai Purcotton 10000000.00 Guangdong Sale of Purcotton products 0.00% 100.00% Establishment
Guangdong Province
Province
Business
Production and sales of pure
combination
Winner Medical Huanggang City Huanggang City cotton spunlace non-woven fabric
259459200.00 100.00% 0.00% involving entities
(Huanggang) Hubei Province Hubei Province medical consumables and
under common
Purcotton products
control
Business
Production and sales of medical combination
Winner Medical Jingmen City Hubei Jingmen City Hubei
23000000.00 consumables and Purcotton 100.00% 0.00% involving entities
(Jingmen) Province Province
products under common
control
Business
combination
Winner Medical Chongyang County Chongyang County Production and sales of medical
28550000.00 100.00% 0.00% involving entities
(Chongyang) Hubei Province Hubei Province consumables
under common
control
Business
Production and sales of medical combination
Winner Medical Jiayu County Hubei Jiayu County Hubei
233040000.00 consumables and Purcotton 100.00% 0.00% involving entities
(Jiayu) Province Province
products under common
control
Business
combination
Winner Medical Zhijiang City Hubei Zhijiang City Hubei Production and sales of medical
12413669.00 100.00% 0.00% involving entities
(Yichang) Province Province gray cloth
under common
control
Business
Production and sales of pure combination
Winner Medical Tianmen City Tianmen City Hubei
37670000.00 cotton spunlace non-woven fabric 100.00% 0.00% involving entities
(Tianmen) Hubei Province Province
and Purcotton products under common
control
Business
Winner Medical Sales of medical consumables and
897570.00 Hong Kong Hong Kong 60.00% 0.00% combination
(Hong Kong) healthy consumer goods involving entities
under common199
Section VIII Financial Report
Proportion of ownership
Name of the interest (%) Method of
Registered capital Place of business Registered address Nature of business
subsidiary acquisition
Direct Indirect
control
Business
combination not
Winner Medical
4943266.40 Malaysia Malaysia No actual business operation 100.00% 0.00% involving entities
Malaysia
under common
control
Heyuan City
Winner Medical Heyuan City
100000000.00 Guangdong No actual business operation 100.00% 0.00% Establishment
(Heyuan) Guangdong Province
Province
Production and sterilization of
Winner Medical Wuhan City Hubei Wuhan City Hubei
800000000.00 pure cotton spunlace non-woven 100.00% 0.00% Establishment
(Wuhan) Province Province
fabric and Purcotton products
Shenzhen City
Shenzhen City Sales of personal care products
PureH2B 150000000.00 Guangdong 100.00% 0.00% Establishment
Guangdong Province and other products
Province
Shenzhen City
Shenzhen City
Purunderwear 5000000.00 Guangdong Sales of cotton lining products 0.00% 100.00% Establishment
Guangdong Province
Province
Huanggang Huanggang City Huanggang City
10000000.00 Sale of Purcotton products 0.00% 100.00% Establishment
Purcotton Hubei Province Hubei Province
Business
combination not
Huzhou City Huzhou City Production and sales of medical
Longterm Medical 50000000.00 55.00% 0.00% involving entities
Zhejiang Province Zhejiang Province consumables
under common
control
Business
combination not
Hangzhou City Hangzhou City Other technology promotion
Hangzhou Shengyi 5000000.00 0.00% 55.00% involving entities
Zhejiang Province Zhejiang Province services
under common
control
Business
combination not
Xi’an City Shaanxi Xi’an City Shaanxi Engineering technical research
Xi'an Longtemu 5000000.00 0.00% 55.00% involving entities
Province Province and experimental development
under common
control
Business
Manufacturing of medical combination not
Huzhou City Huzhou City
Deqing Longterm 2000000.00 instruments equipment and 0.00% 55.00% involving entities
Zhejiang Province Zhejiang Province
device under common
control
Business
Manufacturing of medical combination not
US Longterm the United States the United States instruments equipment and 0.00% 55.00% involving entities
device under common
control
Business
combination not
Wenzhou City Wenzhou City Software and information
Zhejiang Honglan 10651163.00 0.00% 31.35% involving entities
Zhejiang Province Zhejiang Province technology services
under common
control
Business
Xiufeng District Xiufeng District
combination not
Guilin City Guilin City Guangxi
Winner Guilin 86600997.00 Rubber products 91.74% 0.00% involving entities
Guangxi Zhuang Zhuang Autonomous
under common
Autonomous Region Region
control
Business
combination not
Winner Medical Changde City Changde City Hunan Production and sales of medical
44000111.00 68.70% 0.00% involving entities
(Hunan) Hunan Province Province consumables
under common
control
Business
combination not
Ruian Medical Changsha City Changsha City Hunan Engineering technical research
2000000.00 0.00% 68.70% involving entities
Device Hunan Province Province and experimental development
under common
control200
Section VIII Financial Report
Proportion of ownership
Name of the interest (%) Method of
Registered capital Place of business Registered address Nature of business
subsidiary acquisition
Direct Indirect
Business
Shenzhen City combination not
Shenzhen City
Junjian Medical 20120000.00 Guangdong Sales of medical consumables 100.00% 0.00% involving entities
Guangdong Province
Province under common
control
Production and sales of medical
Mexico Longterm 138467940.00 Mexico Mexico 0.00% 55.00% Establishment
consumables
Business
combination not
Shanghai Hongsong 2000000.00 Shanghai Shanghai Sales of medical consumables 60.00% 0.00% involving entities
under common
control
Business
combination not
Jingzhou City Jingzhou City Hubei Production and sale of rubber
Winner Jinzhou 87500000.00 0.00% 91.74% involving entities
Hubei Province Province products
under common
control
Wuhan City Hubei Wuhan City Hubei
Wuhan Purcotton 20000000.00 Sale of Purcotton products 0.00% 100.00% Establishment
Province Province
Hong Kong
2768100.00 Hong Kong Hong Kong Sale of Purcotton products 0.00% 100.00% Establishment
Purcotton
Pan-China (H.K.) 1285531260.00 Hong Kong Hong Kong Trade and consultancy services 100.00% 0.00% Establishment
Wuhan City Hubei Wuhan City Hubei Research and experimental
Winner Biomedical 5000000.00 0.00% 67.00% Establishment
Province Province development
Purcotton Wuhan City Hubei Wuhan City Hubei Research and experimental
5000000.00 0.00% 58.00% Establishment
Agricultural Province Province development
Business
combination not
Wuhan City Hubei Wuhan City Hubei Manufacturing of chemical raw
Hubei Zhongfu 10000000.00 0.00% 67.00% involving entities
Province Province materials and chemical products
under common
control
Business
combination not
Note 1 Jiaxing City Jiaxing City Zhejiang Medical devices and special GRI METC 46248859.96 75.20% involving entities
Zhejiang Province Province industrial protective products
under common
control
Business
combination not
GRI Alleset 926040.00 Note 2 Hong Kong Hong Kong Sales of medical products 75.20% involving entities
under common
control
Business
combination not
Alleset Inc 3503.70 Note 3 the United States the United States Sales of medical products 75.20% involving entities
under common
control
Note: Note 1 The registered capital of GRI METC is USD6.6 million
Note 2 The registered capital of GRI Alleset is HKD1 million
Note 3 The registered capital of Alleset Inc is USD500
Description of the difference between the percentage of equity interest and the proportion of voting rights held in subsidiaries:
Basis for holding half or less than half of the voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
For the important structured entity included in the scope of consolidation the control basis is as follows:
N/A
Basis for determining whether the company is an agent or a principal:
N/A
Other descriptions:201
Section VIII Financial Report
N/A
(2) Material non-wholly owned subsidiary
Unit: RMB
Percentage of equity
Name of the Prot or loss for the period allocated Dividends paid to non-controlling Closing balance of non-
interests held by non-
subsidiary to non-controlling interests interests controlling interests
controlling interests
Longterm
45.00%28046435.200.00396258821.43
Medical
Description of the difference between the percentage of equity interest held by non-controlling interests and the proportion of voting rights held in
subsidiaries:
Other descriptions:
(3) Summarised financial information of material non-wholly owned subsidiaries
Unit: RMB
Closing balance Opening balance
Name of
the
subsidiary Non-current Non-current Non-current Current Non-current Current assets Total assets Current liabilities Total liabilities Current assets Total assets Total liabilities
assets liabilities assets liabilities liabilities
Longterm
308964374.40720261528.961029225903.36114363148.4037007719.40151370867.80260695340.14730160168.87990855509.01141735028.5744087161.99185822190.56
Medical
Unit: RMB
Amount for the current period Amount for the last period
Name of the Total Total
Net cash ows
subsidiary comprehensive Net cash ows from comprehensive
Operating revenue Net profit Operating revenue Net profit from operating
income for the operating activities income for the
activities
period period
Longterm
270387739.9862273639.5962273639.5979957769.06245923791.1140799744.3540799744.3571463917.34
Medical
Other descriptions:
(4) Significant restrictions on the Company’s ability to use the assets and settle the liabilities of the Group
(5) Financial or other support provided to structured entities included in the scope of consolidated financial statements
Other descriptions:
2. Transactions in which the share of equity in subsidiaries changes and the control is not affected
(1) Description of changes in the share of equity in subsidiaries
N/A202
Section VIII Financial Report
(2) Effect of the transaction on non-controlling interests and equity attributable to owners of the parent
Unit: RMB
Purchase cost/consideration for the disposal
- Cash
- Fair value of non-cash assets
Total purchase cost/consideration for the disposal
Less: share of net assets of the subsidiary calculated at the proportion of equity acquired/disposed
Differences
Including: Adjustment to capital reserves
Adjustment to surplus reserve
Adjustment to retained earnings
Other description
3. Equity in joint ventures and associates
(1) Important joint ventures or associates
Proportion of ownership interest
Name of joint ventures and Place of Registered (%) Accounting for joint ventures
Nature of business
associates business address and associates
Direct Indirect
the United Cayman Sales of medical Accounted for as long-term
Company S 35.21%
States Islands products equity investments
Description of the difference between the percentage of equity interest and the proportion of voting rights held in joint ventures or associates:
Basis for having significant influence even though holding less than 20% of the voting rights or not having significant influence even though holding 20%
or more of the voting rights:203
Section VIII Financial Report
(2) Summarised financial information of material joint ventures:
Unit: RMB
Closing balance/amount for the Opening balance/amount for the
current period prior period
Current assets
Including: Cash and cash equivalents
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Non-controlling interests
Equity attributable to shareholders of the parent
Net assets calculated by the proportion of ownership interests
Adjustments
- Goodwill
- Unrealised profit on inter-company transactions
- Others
Carrying amount of investments in joint ventures
Fair value of the equity investment in joint ventures at quoted market price
Operating revenue
Finance expenses
Income tax expenses
Net profit
Profit from a discontinued operation
Other comprehensive income
Total comprehensive income for the period
Dividends received from joint ventures during the year
Other description204
Section VIII Financial Report
(3) Summarised financial information of material associates:
Unit: RMB
Closing balance/amount for the current Opening balance/amount for the prior
period period
Company S Company S
Current assets 313372709.51 290143817.75
Non-current assets 218293809.23 229332861.79
Total assets 531666518.74 519476679.54
Current liabilities 239998215.23 174562102.54
Non-current liabilities 18777671.03 18526435.94
Total liabilities 258775886.26 193088538.48
Net assets 272890632.49 326388141.06
Non-controlling interests
Equity attributable to shareholders of the parent
Net assets calculated by the proportion of ownership interests 96072511.62 114906577.00
Adjustments 308242072.68 308242072.68
- Goodwill
- Unrealised profit on inter-company transactions
- Others
Carrying amount of equity investments in associates 404314584.30 423148649.68
Fair value of equity investments in associates at quoted market
price
Operating revenue 239573520.31 93641295.02
Net profit -35522800.70 -22111407.13
Profit from a discontinued operation
Other comprehensive income
Total comprehensive income for the period -35522800.70 -22111407.13
Dividends received from associates during the year
Other description205
Section VIII Financial Report
(4) Aggregate financial information of individually immaterial joint ventures and associates
Unit: RMB
Closing balance/amount for the current Opening balance/amount for the prior
period period
Joint ventures:
Total based on shareholding ratios
Associates:
Total carrying amount of the investment 21871851.43 22207128.32
Total based on shareholding ratios
- Net profit -333043.88 115196.26
- Total comprehensive income -333043.88 115196.26
Other description
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer funds to the Company
(6) Excess losses incurred by joint ventures or associates
Unit: RMB
Name of joint ventures and Cumulative unrecognised losses at Unrecognised losses Cumulative unrecognised losses at
associates prior period (or net prot) for the current period end of the current period
Other description
(7) Unrecognised commitments related to investments in joint ventures
(8) Contingent liabilities related to the investments in joint ventures or associates
4. Material joint operation
Percentage of ownership interest/equity interest
Name of the joint
Place of business Registered address Nature of business
operation
Direct Indirect
Description of the difference between the percentage of ownership interest or equity interest and the proportion of voting right held in the joint operation:
When the joint operation is a separate entity the basis for classifying it as a joint operation is as below:
Other description206
Section VIII Financial Report
5. Interests in structured entities not included in the scope of consolidated financial statements
Description of structured entities not included in the scope of consolidated financial statements:
6. Others
XI. Government Grants
1. Government grants recognised at the amount receivable at the end of the reporting period
□Applicable √N/A
Reasons for failing to receive the estimated amount of government grants at the estimated time point
□Applicable √N/A
2. Liability items relating to government grants
√Applicable □N/A
Unit: RMB
Amounts Amounts
Addition of grants recognised as non- transferred in Others changes in
Closing Related to
Item Opening balance in the current operating income other income in the current period
balance assets/ income
period in the current the current
period period
Related to
Deferred income 157154401.72 27198600.00 6399452.28 177953549.44
assets
3. Government grants included in profit or loss
√Applicable □N/A
Unit: RMB
Item Amount for the current period Amount for the last period
Other revenue 29417982.09 22618569.68
Non-operating revenue 182000.00 3000.00
Other description207
Section VIII Financial Report
XII. Risks Related to Financial Instruments
1. Risks arising from financial instruments
1. Risks of financial instruments
The Company’s daily activities expose it to risks arising from various financial instruments mainly including credit risk liquidity risk and market risk.The Company’s risk management policy to address these risks are described as follows:
The Board of Director is responsible for planning and establishing the Company’s risk management framework formulating risk management policies
and relevant guidelines and supervising the implementation of risk management measures. The Company has risk management policies to identify and
analyse risks faced by the Company which set rules for specific risks covering market risk credit risk and liquidity risk management. The Company
regularly assesses changes in the market environment and its operating activities to determine whether to update risk management policies and systems.The Company’s risk management is carried out by the Group’s Risk Control Department in accordance with the policies approved by the Board of
Directors. The department identifies evaluates and mitigates risks through close cooperation with other business units of the Company. The Internal
Audit Department of the Company reviews risk management control and procedures on a regular basis and reports the results to the Audit Committee of
the Company.The Company diversifies the risk of financial instruments through various appropriate investment and business portfolios and mitigates the risk of
concentration in a single industry specific region or specific counterparty by formulating corresponding risk management policies.* Credit risk
Credit risk is the risk that a counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge an obligation.The Company’s credit risk mainly arises from currency funds notes receivable accounts receivable receivables financing and other receivables as well
as debt investments at fair value through profit or loss that are not included in the scope of impairment assessment etc. At the balance sheet date the
carrying amount of the Company’s financial assets is equal to its maximum credit exposure.The Company believes that there is no significant credit risk associated with currency funds as they are deposited with well-established state-owned
banks and other large and medium-sized commercial banks with high credit rating. Management does not expect that there will be any significant credit
losses from non-performance by these counterparties
In addition the Company has policies to limit the credit exposure on notes receivable accounts receivable receivables financing contract assets and
other receivables. The Company assesses the credit quality of and sets credit periods for its customers based on their financial position and credit records
the availability of third-party guarantees and other factors such as current market conditions. The credit records of customers are regularly monitored by
the Company. For customers with poor credit records the Company uses written payment reminders or shortens or cancels credit periods to ensure that
the Company’s credit risk is overall controllable.The Company does not require collateral as it only trades with recognised and creditworthy third parties. Credit risk concentration is managed according
to customers/counterparties geographic regions and industries. Since the customer base of the Company’s accounts receivable is widely dispersed the
Company has no significant concentration of credit risk. The Company does not hold any collateral or other credit enhancements on the balance of
accounts receivable.208
Section VIII Financial Report
Criteria for determining significant increase in credit risk
At each balance sheet date the Company assesses whether the credit risk on financial instruments has increased significantly since initial recognition.The principal criteria adopted by the Company in determining a significant increase in credit risk are more than 30 days overdue or significant changes in
one or more of the following indicators: material adverse changes in the debtor’s operating environment internal/external credit ratings actual or
expected operating results.Definition of credit-impaired assets
The main criterion adopted by the Company in determining credit impairment is more than 90 days overdue. However in certain cases where internal or
external information indicates that it may not be able to collect a contract amount in full before considering any credit enhancements held the Company
will also consider that credit impairment has occurred. It may not be possible to identify a single discrete event – instead the combined effect of several
events may have caused financial assets to become credit-impaired.* Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations that are settled by delivering cash or another financial asset.The Company’s policy is designed to ensure that sufficient cash is available to repay debts as they fall due. Liquidity risk is managed centrally by the
Company’s Finance Department. The department monitors rolling forecasts of cash balances readily realisable securities and cash flows over the next 12
months to ensure that the Group has sufficient funds to repay its debts under all reasonable forecasts. The department also continuously monitors
whether the Group complies with the provisions of borrowing agreements and obtains commitments from major financial institutions to provide
sufficient reserve funds to meet short-term and long-term liquidity requirements.The maturity profile of financial liabilities based on undiscounted contractual cash flow is summarised as follows:
30 June 2025
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 1800844655.00 1800844655.00
Notes payable 357293200.97 357293200.97
Accounts payable 950746182.38 950746182.38
Other payables 581576308.72 581576308.72
Non-current liabilities due within one
206174504.07206174504.07
year
Long-term payables 26483360.45 26483360.45
Lease liabilities 156777917.94 167202656.39 88933115.88 412913690.20
Total 3896634851.14 156777917.94 193686016.84 88933115.88 4336031901.79209
Section VIII Financial Report
31 December 2024
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 1972918549.76 - - - 1972918549.76
Notes payable 431873210.11 - - - 431873210.11
Accounts payable 1155930554.98 - - - 1155930554.98
Other payables 516522493.00 - - - 516522493.00
Non-current liabilities due within one
399167353.26---399167353.26
year
Long-term borrowings - 4346397.26 3990000.00 53869753.42 62206150.68
Long-term payables - - 59764037.31 - 59764037.31
Lease liabilities - 165961149.99 209931591.41 107766498.95 483659240.35
Total 4476412161.11 170307547.25 273685628.72 161636252.37 5082041589.45
* Market risk
Market risk of a financial instrument is the risk that the fair value or future cash flows of the financial instrument will fluctuate because of changes in
market prices. It comprises interest rate risk currency risk and price risk.
(1) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.Interest-bearing financial instruments with fixed and floating interest rates expose the Company to fair value interest rate risk and cash flow interest rate
risk respectively. The Company determines the relative proportions of its instruments issued at fixed and floating interest rate based on market
conditions and maintains an appropriate mix of such instruments through regular review and monitoring. The Company uses interest rate swaps to hedge
interest rate risk if necessary.As at 30 June 2025 with other variables held unchanged had the borrowing rate calculated at the floating interest rate risen or fallen by 100 basis points
the Company’s profit would have decreased or increased by RMB2508115.6 (December 31 2024: RMB3257632.71). Management believes that 100
basis points reflect a reasonable range of possible changes in interest rates for the next year.
(2) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.The Company continuously monitors transactions denominated in foreign currencies and the scale of foreign currency assets and liabilities to minimise
the currency risk. The Group may also enter into forward foreign exchange contracts or currency swap contracts to avoid the currency risk. In the current
and prior periods the Company did not enter into any forward foreign exchange contracts or currency swap contracts.210
Section VIII Financial Report
The currency risk faced by the Company mainly comes from financial assets and liabilities denominated in USD. The amount of foreign currency
financial assets and liabilities converted into RMB is as follows:
USD/EUR Exchange Rate Net Profit/Loss Increase/(decrease) in other Total Shareholders' Equity
Items comprehensive income net
Increase/(Decrease) % Increase/(Decrease) of tax Increase/(Decrease)
Weaker RMB against USD 5% 40306503.36 - 40306503.36
Stronger RMB against USD -5% -40306503.36 - -40306503.36
Weaker RMB against EUR 5% 1686081.54 - 1686081.54
Stronger RMB against EUR -5% -1686081.54 - -1686081.54
31 December 2024
USD/EUR Exchange Rate Net Profit/Loss Increase/(decrease) in other Total Shareholders' Equity
comprehensive income net
Items Increase/(Decrease) % Increase/(Decrease) of tax Increase/(Decrease)
Weaker RMB against USD 5% 24387578.87 - 24387578.87
Stronger RMB against USD -5% -24387578.87 - -24387578.87
Weaker RMB against EUR 5% 867409.48 - 867409.48
Stronger RMB against EUR -5% -867409.48 - -867409.48
As at 30 June 2025 with all other variables held unchanged had RMB strengthened or weakened by 5% against the above foreign currencies the
Company’s profit would have increased or decreased by RMB41992584.90 (31 December 2024: RMB25254988.35). Management believes that 5%
reflects the reasonable range of possible changes in RMB against USD in the next year.
(3) Price risk
The Company’s exposure to price risk is the risk arising from changes in the fair value of trading financial assets and trading financial liabilities classified
as financial assets and liabilities at fair value through profit or loss. The Company manages this exposure by maintaining a portfolio of investments with
different risks.The table below illustrates the sensitivity of the Company’s net profit or loss and other comprehensive income net of tax to every 5% change in the fair
value of trading financial assets based on the carrying amounts as at the balance sheet date with all other variables held constant.211
Section VIII Financial Report
30 June 2025
Net amount of
Total
other
Net Profit/Loss Shareholders'
comprehensive
Carrying amount of Equity
Items income after tax
trading financial assets
Increase/(Decreas
Increase/(Decrease) Increase/(Decrease)
e)
Trading financial assets
Financial assets at fair value through profit or loss 2124524520.71 103933549.92 103933549.92
31 December 2024
Net amount of
other Total Shareholders'
Net Profit/Loss
Carrying amount of comprehensive Equity
Items trading financial income after tax
assets
Increase/(Decreas
Increase/(Decrease) Increase/(Decrease)
e)
Trading financial assets
Financial assets at fair value through profit or loss 2921341484.39 123525008.09 - 123525008.09
2. Capital management
The primary objective of the Company’s capital management is to safeguard its ability to continue as a going concern and to maintain healthy capital
ratios to support its business development and maximise shareholders’ value.The Company manages and adjusts its capital structure in light of economic dynamics and changes in risk characteristics of relevant assets. To maintain
or adjust the capital structure the Company may adjust dividend payments return capital or issue new shares to shareholders. The Company is not
subject to external mandatory capital requirements. No changes in the objectives policies or processes for managing capital were made in 2025 and 2024.The Company monitors capital using an asset-liability ratio which is calculated by dividing total liabilities by total assets. The Company’s policies are
designed to maintain the ratio at a reasonable level. The asset-liability ratio of the Company as at the balance sheet date is as follows:
Items 30 June 2025 31 December 2024
Total assets 18017761901.94 18391855961.52
Total liabilities 5741802472.26 6516184758.78
Asset-liability ratio 31.87% 35.43%212
Section VIII Financial Report
2. Hedge
(1) The Company carries out hedging business for risk management
□Applicable √N/A
(2) The Company carries out qualified hedging business and applies hedging accounting
Unit: RMB
The impact of hedge
Book value related to Cumulative fair value hedging adjustments of Some sources of accounting on a
Items hedged items and hedging hedged items included in recognised carrying hedging effectiveness Company’s nancial
instruments amounts and ineffectiveness statements
Hedging risk 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 √N/A
3. Financial assets
(1) Transfer method classification
√Applicable □N/A
Unit: RMB
Nature of financial assets Amount of financial assets
Transfer method Derecognition Basis for derecognition
transferred transferred
It has retained substantially all the risks
Endorsed bills Notes receivable 11287766.20 Not derecognised and rewards including related default
risks
It has transferred substantially all the
Endorsed bills Receivables financing 194524604.01 Derecognition
risks and rewards
Total 205812370.21
(2) Financial assets derecognised due to transfers
√Applicable □N/A
Unit: RMB
Gains or losses related to
Items Transfer method Amount of nancial assets derecognised
derecognition
Receivables financing Endorsed bills 194524604.01 0.00
Total 194524604.01 0.00213
Section VIII Financial Report
(3) Asset transfer financial assets that continue to be involved
□Applicable √N/A
Other description
XIII. Fair Value Disclosure
1. Closing fair value of assets and liabilities measured with fair value
Unit: RMB
Closing fair value
Items
Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurements measurements measurements
I. Recurring fair value measurements -- -- -- --
(1) Trading financial assets 2124524520.71 2124524520.71
1. Financial assets at fair value through
2124524520.712124524520.71
profit or loss
Receivables financing 44592896.78 44592896.78
Other non-current financial assets 30746095.73 76673047.39 107419143.12
Total assets continuously measured at fair
2199863513.2276673047.392276536560.61
value
II. Non-recurring fair value measurements -- -- -- --
2. Basis of determining the market prices or recurring and non-recurring Level 1 fair value
measurements
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for
recurring and non-recurring Level 2 fair value measurements
The Company enters into wealth management product contracts with various counterparties principally financial institutions with high credit ratings.These financial instruments are not traded in active markets but there are active market quotes for similar financial instruments. For wealth management
products measured at fair value through profit or loss the expected rate of return available in the market is used to estimate the future cash flows and the
fair value is determined by discounting the future cash flows at the interest rate determined based on the best estimates of the expected risk levels.Convertible corporate bond investments measured at fair value through profit or loss are measured using the valuation technique of the binomial tree
model. The model covers a number of market-observable inputs including the underlying stock prices exercise prices and maturities.The fair value of receivables financing is measured at their par value.In identifying similar financial instruments the Company considers factors such as characteristics of assets or liabilities contract terms and risks to
ensure that the selected instruments are highly similar to the valued instruments in key aspects. The Company regularly evaluates the effectiveness of the
selected valuation model and adjusts model parameters in a timely manner in response to market changes to ensure the accuracy of fair value.214
Section VIII Financial Report
4. Valuation techniques and qualitative and quantitative information of key parameters adopted for
recurring and non-recurring Level 3 fair value measurements
The Company’s Finance Department headed by the finance controller is responsible for formulating policies and procedures for the fair value
measurement of financial instruments. At each reporting date the Finance Department analyses movements in the value of financial instruments and
identifies the major inputs applied in the valuation. The valuation is reviewed and approved by the finance controller.The fair value of the Company’s unlisted fund investments using fair value measurement within Level 3 is determined based on the net asset value
provided by the manager. This net asset value is determined based on the data of comparable companies and taking into account market multipliers such
as the price-to-earnings (P/E) ratio and the price-to-book (P/B) ratio or referring to the market value of comparable companies. The Company believes
that the fair value estimated using the valuation technique and its changes are reasonable. It is the most appropriate value as at the balance sheet date.
5. Reconciliation between opening and closing carrying amounts and sensitivity analysis of unobservable
parameters for recurring Level 3 fair value measurements
6. Transfers between fair value levels for recurring fair value measurements: reasons and the policies for
identifying the time of transfer
7. Changes in valuation techniques during the Period and reasons for changes
8. Fair value information of financial assets and liabilities not measured at fair value
9. Others
XIV. Related Parties and Transactions
1. Parent
Proportion of voting
Proportion of
Registered power in the Company
Name Nature of business Registered capital ownership interest
address (%)
in the Company (%)
Equity investment and
Winner Group Limited Cayman Islands HKD1143000.00 69.83% 69.83%
management
Information about the parent
The ultimate controlling party of the Company Li Jianquan.Other descriptions:
2. Subsidiaries
Information about the subsidiaries of the Company is disclosed in “Note X. Interests in other entities”.215
Section VIII Financial Report
3. Joint ventures or associates
Details of the major joint ventures or associates of the Company are set out in “Note X. Interests in other entities”.The details of other joint ventures or associates that had related party transactions with the Company during the current period or had outstanding
balances arising from related party transactions with the Company in prior periods are as follows:
Name Related party relationships
Chengdu Winner Likang Medical Products Co. Ltd. Associate
Hubei Xianchuang Technology Co. Ltd. Associate
Zhejiang Shiyou Medical Materials Co. Ltd. Associate
Company S Associate
Other description
4. Other related parties
Name Related party relationships
Glory Ray Holdings Limited Controlled by the actual controller
Glory Ray Limited Controlled by the actual controller through Glory Ray Holdings
Beijing Sequoia Xinyuan Equity Investment Center (limited partnership) Shareholder of the Company
Xiamen Leyuan Investment Partnership (Limited Partnership) Shareholder of the Company
Xiamen Yutong Investment Partnership (Limited Partnership) Shareholder of the Company
Xiamen Huikang Investment Partnership (Limited Partnership) Shareholder of the Company
Shenzhen Capital Group Co. Ltd. Shareholder of the Company
Xiamen Zepeng Investment Partnership (Limited Partnership) Shareholder of the Company
Chengdu Winner Likang Medical Products Co. Ltd. Associate with 49% of its equity hold by the Company
Company S Associate
GRI-Alleset India Pvt Ltd. Controlled by minority shareholders of GRI
Controlled by close family members of the Company’s key management
Wuhan Zhuoling Packaging Co. Ltd.personnel
Controlled by close family members of the Company’s key management
Hubei Zhuoling Packaging Co. Ltd.personnel
Glory Ray Holdings Limited Controlled by the actual controller
Huang Jun Original shareholder and original director of Winner Medical (Hunan)
Company in which Zheng Datian Vice Chairman of Winner Medical
Lixian SHRCB Rural Bank Co. Ltd.(Hunan) serves as a director216
Section VIII Financial Report
Name Related party relationships
Jingyun Biotechnology (Shanghai) Co. Ltd. Actually controlled by Wu Kangping a shareholder of Longterm Medical
Shenzhen Nine Stars Printing and Packaging Group Co. Ltd. Controlled by the ultimate controller of Winner Guilin before merger
Shenzhen Junhesheng Technology Co. Ltd. Controlled by the actual controller of Junjian Medical before merger
Shenzhen Shengtianning Medical Device Co. Ltd. Controlled by the actual controller of Junjian Medical before merger
Shenzhen Zhengjun Medical Device Co. Ltd. Controlled by the actual controller of Junjian Medical before merger
Zhejiang Kanglidi Medical Articles Co. Ltd. Actually controlled by Wu Di a shareholder of Longterm Medical
ZheJiang Longmed Medical Technology Co. Ltd. Actually controlled by Wu Di a shareholder of Longterm Medical
ZheJiang Longrising Medical New Materials Co. Ltd. Actually controlled by Wu Kangping a shareholder of Longterm Medical
Controlling shareholder and actual controller of Junjian Medical before
Zheng Junhui
merger
Controlling shareholder of Longterm Medical before merger and its current
Wu Kangping Huang Lepei Wu Di
minority shareholders
Controlling shareholders of Shanghai Hongsong before merger and its
Cao Wensong Zhang Yuqing
current minority shareholders
Minority shareholder of Winner Guilin former shareholder of Winner
Guilin Golden Eagle Latex Technology Co. Ltd.Jingzhou
Controlling shareholder of GRI before merger and its current minority
James Michael Mabry (Note)
shareholder
Controlling shareholder of GRI before merger and its current minority
Min Tang (Note)
shareholder
Controlling shareholder of GRI before merger and its current minority
Martin Dean Paugh (Note)
shareholder
Controlling shareholder of GRI before merger and its current minority
John Brian Steward (Note)
shareholder
Controlling shareholder of GRI before merger and its current minority
Mark Steven Fellows (Note)
shareholder
Other description
Note: In September 2024 the Company acquired 75.2% of equity of GRI. According to the purchase agreement the Company has forward acquisition
obligations for the minority shareholders. See Note VII.52 for details.217
Section VIII Financial Report
5. Related party transactions
(1) Related party transactions of sales and purchases of goods and provision and receipts of services
Purchases of goods/receipts of services from related parties
Unit: RMB
Amount for the Approved Whether the transaction Amount for the
Related parties Transactions
current period transaction quota quota is exceeded last period
Purchasing goods or
Wuhan Zhuoling Packaging Co. Ltd. No 9682134.02
services
Chengdu Winner Likang Medical Purchasing goods or
22153.50 No 27437.96
Products Co. Ltd. services
Shenzhen Nine Stars Printing and Purchasing goods or
915280.30 No 436641.99
Packaging Group Co. Ltd. services
Zhejiang Kanglidi Medical Articles Co. Purchasing goods or
No 45884.88
Ltd. services
ZheJiang Longrising Medical New Purchasing goods or
535459.40 No 81773.40
Materials Co. Ltd. services
ZheJiang Longmed Medical Technology Purchasing goods or
103600.00 No -2082.00
Co. Ltd. services
Guilin Golden Eagle Latex Technology Purchasing goods or
496956.32 No 2033435.71
Co. Ltd. services
Purchasing goods or
Hubei Zhuoling Packaging Co. Ltd. 9685422.08 No
services
Sales of goods/provision of services to related parties
Unit: RMB
Amount for the last
Related parties Transactions Amount for the current period
period
Chengdu Winner Likang Medical Products Co.Selling goods or services 882360.68 458092.25
Ltd.ZheJiang Longmed Medical Technology Co.Selling goods or services 252342.87 307413.91
Ltd.Zhejiang Kanglidi Medical Articles Co. Ltd. Selling goods or services 2163810.63 2799497.68
Company S Selling goods or services 5377133.21
Shenzhen Shengtianning Medical Device Co.Selling goods or services 1419274.31
Ltd.GRI-Alleset India Pvt Ltd Selling goods or services 470555.41
Description of related party transactions of sales and purchases of goods and provision and receipts of services218
Section VIII Financial Report
(2) Entrusted/contracted activities and delegated/outsourced activities with related party
Entrusted/contracted activities:
Unit: RMB
Trusteeship/contracti
Type of Pricing basis for
Entrusting/outsour Commencement Termination ng income
Trustee/contractor entrusted/contracted trusteeship/contracting
cing party date date recognised during the
assets fees
period
Description of related party entrusted/contracted activities
Delegated/outsourced activities:
Unit: RMB
Type of Pricing basis for Trusteeship/outsourci
Entrusting/outsour Commencement
Trustee/contractor delegated/outsource Termination date trusteeship/outsourcin ng fees recognised
cing party date
d assets g fees during the period
Description of related party delegated/outsourced activities
(3) Related party leases
The Company as lessor:
Unit: RMB
Rental income in the previous
Lessees Type of leased assets Rental income in the current period
period
Chengdu Winner Likang Medical Products
Plant 968646.36 1090129.38
Co. Ltd.The Company as lessee:
Unit: RMB
Lease payments for short-
Variable lease payments
term leases and leases of
not included in the Interest expense on Additions to right-of-
low-value assets accounted Lease payments
measurement of lease lease liabilities use assets
for under the simplied
Type of liabilities (if applicable)
approach (if applicable)
Lessor leased
assets
Amount Amount Amount Amount Amount Amount Amount
Amount for Amount for Amount
for the for the for the for the for the for the for the
the current the last for the last
current current last current last current last
period period period
period period period period period period period
Description of related party leases219
Section VIII Financial Report
(4) Related party guarantees
The Company as guarantor
Unit: RMB
Whether guarantee has been
Guaranteed party Guarantee amount Commencement date Maturity date
fulled
The Company as guaranteed party
Unit: RMB
Whether guarantee has been
Guarantor Guarantee amount Commencement date Maturity date
fulled
Description of related party guarantees
(5) Related party fund lending
Unit: RMB
Related parties Loan amount Commencement date Maturity date Explanation
Funds borrowed
Funds lent
(6) Related party asset transfers and debt restructuring
Unit: RMB
Amount for the current
Related parties Transactions Amount for the last period
period
(7) Compensation of key management personnel
Unit: RMB
Amount for the current
Items Amount for the last period
period
Compensation of key management personnel 9380052.75 4930973.93
(8) Other related party transactions
Items 30 June 2025 31 December 2024
Related party borrowings (Note) 31685319.26 32094498.00
Note: The borrowings refer to the interest-free borrowings from Pan-China (H.K.) to the controlling shareholder Winner Group Limited. See Note VII.48 for details.220
Section VIII Financial Report
6. Amounts due from/to related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Related parties
Provision for Gross carrying Provision for bad
Gross carrying amount
bad debt amount debt
Accounts
GRI-Alleset India Pvt Ltd 13417354.13 7286731.78 13056602.47 6955786.99
receivable
Accounts Zhejiang Kanglidi Medical Articles Co.
2063356.00103167.801870228.8093511.44
receivable Ltd.Accounts Chengdu Winner Likang Medical
402987.5320149.38538133.2526906.66
receivable Products Co. Ltd.Accounts ZheJiang Longmed Medical Technology
11316.00565.8037705.561885.28
receivable Co. Ltd.Accounts
Company S 3639881.77 181994.09
receivable
Long-term Chengdu Winner Likang Medical
32054602.6931209579.38
receivables Products Co. Ltd.Current portion of Chengdu Winner Likang Medical
4603307.894479684.84
non-current assets Products Co. Ltd.Other receivables GRI-Alleset India Pvt Ltd 5168754.38 5151685.67 5186667.64 5150927.49
Other non-current Guilin Golden Eagle Latex Technology
1931728.00
assets Co. Ltd.
(2) Payables
Unit: RMB
Item Related parties Closing balance Opening balance
Accounts payable Chengdu Winner Likang Medical Products Co. Ltd. 6440.88 11417.02
Shenzhen Nine Stars Printing and Packaging Group Co.Accounts payable 668485.78 846592.73
Ltd.Accounts payable Guilin Golden Eagle Latex Technology Co. Ltd. 0.00 623503.50
Accounts payable Hubei Zhuoling Packaging Co. Ltd. 3824770.71 5962746.26
Accounts payable ZheJiang Longrising Medical New Materials Co. Ltd. 0.00 5229.00
Contract liabilities Company S 0.00 150714.54
Contract liabilities Shenzhen Capital Group Co. Ltd. 11946.90 11946.90
Contract liabilities Shenzhen Shengtianning Medical Device Co. Ltd. 1165.93 1165.93
Dividends payable Winner Group Limited 101653596.75 162645754.80
Long-term payables Winner Group Limited 26483360.45 26892539.19
Other non-current
Minority shareholders of GRI 373262348.97 373262348.97
liabilities221
Section VIII Financial Report
7. Commitments with related parties
8. Others
XV. Share-based Payment
1. Share-based payments
□Applicable √N/A
2. Equity-settled share-based payments
√Applicable □N/A
Unit: RMB
Method for determining the fair value of equity instruments on the
Calculated according to stock price agreement and B-S model
grant date
Significant parameters of determining the fair value of equity Dividend yield ratio expected and historical volatility risk-free interest rate
instruments on the grant date expected term of share options weighted average share price
Basis for the determination of the number of viable equity
It is expected to meet the vesting conditions
instruments
Reasons for material differences between current and prior period
None
estimates
Accumulated amount of equity-settled share-based payments
133779835.94
recorded in capital reserves
Total expense recognised for equity-settled share-based payments
27348053.65
during the period
Other description
(1) 2023 Employee Stock Ownership Plan (ESOP)
The Company held the 16th meeting of the third Board of Directors and the 11th meeting of the third Board of Supervisors on 15 August 2023 and held
the 2nd Extraordinary General Meeting of Shareholders of 2023 on 5 September 2023 which reviewed and approved the Proposal on the First Grant of
the Employee Stock Ownership Plan (Draft) the Proposal on the Management Measures for the First Grant of the Employee Stock Ownership Plan and
other related proposals.The purchase price of the ESOP is RMB43.00 per share. The actual subscription funds totaled RMB21715000 (excluding reserved shares) and the
actual number of shares subscribed were 21715000. The ratio of employee self-raised funds to incentive funds set aside by the Company is 1:1. The
source of share is the Company’s A-share ordinary shares repurchased in its special repurchase account. The Company completed the non-trading transfer
of the 2023 ESOP on 11 October 2023.The ESOP is valid for 60 months calculated from the date when the plan is approved at the shareholders’ meeting and the Company announces the
transfer of the underlying shares to the ESOP. The corresponding equity interests will vest in three tranches to respective ESOP participants contingent
upon the performance assessment during the vesting period namely 12 months 24 months and 36 months from the date when the underlying shares are
transferred to the ESOP. The vesting proportions will be 30% 30% and 40% of the total number of shares under the ESOP respectively.222
Section VIII Financial Report
(2) 2024 Class II Restricted Share Incentive Scheme
The Company held the 5th meeting of the fourth Board of Directors and the 5th meeting of the fourth Board of Supervisors on 15 November 2024 which
reviewed and approved the Proposal on the Initial Grant of Restricted Shares to Participants of 2024 Restricted Share Incentive Scheme.The purchase price of the scheme is RMB15.39 per share. The Company has granted 6976300 restricted shares to 308 participants. The Company shall
recognise share-based payments of RMB124383.1 thousand. The source of share is A-share ordinary shares issued by the Company to participants and
the grant date is 15 November 2024.This scheme is valid from the date of initial grant to the date when all restricted shares granted to participants are vested or cancelled. The maximum
period shall not exceed 60 months. The corresponding equity interests will vest in three tranches to respective participants contingent upon the
performance assessment during the vesting period. The first vesting period starts from the first trading day after 18 months since the initial grant to the
last trading day within 30 months since the initial grant with a vesting proportion of 40%; the second vesting period starts from the first trading day after
30 months since the initial grant to the last trading day within 42 months since the initial grant with a vesting proportion of 30%; the third vesting period
is from the first trading day after 42 months since the initial grant to the last trading day within 54 months since the initial grant with a vesting proportion
of 30%.
3. Cash-settled share-based payments
□Applicable √N/A
4. Share-based payments in current period
√Applicable □N/A
Unit: RMB
Categories of grantees Equity-settled share-based payments Cash-settled share-based payments
Management personnel 17284378.72
Sales personnel 7412411.77
R&D personnel 2651263.16
Total 27348053.65
Other description
5. Modifications and terminations of share-based payments
None
6. Others
None223
Section VIII Financial Report
XVI. Commitments and Contingencies
1. Significant commitments
Significant commitments existing at the balance sheet date
Unit: RMB
Items 30 June 2025 31 December 2024
Capital commitments 135431000.73 109806872.21
Total 135431000.73 109806872.21
2. Contingencies
(1) Significant contingencies existing at the balance sheet date
As at 30 June 2025 the Company had no significant contingencies to be disclosed.
(2) In cases where the Company has no significant contingences requiring disclosure this fact should also be disclosed
The Company confirms that there are no significant contingencies that require disclosure.
3. Others
XVII. Events after the Balance Sheet Date
1. Significant non-adjusting events
Unit: RMB
Reasons for the inability to estimate
Items Events Impact on financial position and operating results
the impact224
Section VIII Financial Report
2. Profit distribution
Proposed dividend per 10 shares (RMB) 4.5
Proposed bonus shares per 10 shares (shares) 0
Proposed capitalisation issue per 10 shares (shares) 0
Approved and declared dividend per 10 shares (RMB) 4.5
Approved and declared bonus shares per 10 shares
0
(shares)
Approved and declared capitalisation issue per 10 shares
0
(shares)
The Company’s profit distribution plan for 2025 is as follows: based on the current total
share capital of 582329808 shares a cash dividend of RMB4.50 (tax inclusive) will be
distributed for every 10 shares held by shareholders totaling RMB262048413.60 (tax
inclusive) to be distributed. No share capital increase from capital surplus and no
distribution of bonus shares. The proportion of cash dividends for the first half of 2025 to
the net profit attributable to shareholders of the listed company is 53.26%.During the period from the disclosure to the implementation of the profit distribution plan
Profit distribution plan if the total amount of shares enjoying the right to profit distribution changes the company
will make corresponding adjustments in accordance with the principle that the cash
dividend ratio remains unchanged while the total amount of cash dividends changes.The company's 2024 annual shareholders' meeting has authorized the board of directors to
under the premise of meeting the profit distribution requirements comprehensively consider
the company's operating conditions reasonable returns to shareholders etc. to formulate
the specific plan for the interim profit distribution in 2025 and handle the related matters of
the interim profit distribution.
3. Sales return
4. Explanation for other events after the balance sheet date
XVIII. Other Significant Events
1. Correction of accounts prior period errors
(1) Retrospective restatement
Unit: RMB
Processing
Correction of errors Report item name of each affected comparison period Cumulative influence number
procedures
(2) Prospective application
Correction of errors Approval procedures Reason for adopting prospective application
2. Debt restructuring
3. Asset replacement225
Section VIII Financial Report
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Annuity plan
5. Discontinued operation
Unit: RMB
Profit before Income tax
Items Revenue Expenses Net profit Attributable to owners of the parent
income tax expenses
Other description
6. Segment information
(1) Basis for determining reportable segments and accounting policies
According to its internal organisational structure management requirements and internal reporting system the Company has two reportable segments:
medical consumables and healthy consumer goods. Reportable segments of the Company offer different products or services or operate in different
regions. Since both segments require different techniques or marketing strategies management of the Company manages operating activities of each
reportable segment separately and regularly evaluates their operating results 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 each segment are
distributed in proportion to the revenue (depending on specific facts and circumstances). Assets are allocated based on the performance of a segment and
the location of the assets. Liabilities of a segment include liabilities attributable to that segment arising from its business operations. If expenses related to
liabilities shared by multiple operating segments are allocated to those operating segments the underlying liabilities are also allocated to those operating
segments.
(2) Financial information of reporting segments
Unit: RMB
Medical consumables Consumer goods Offset between
Items Unallocated Total
(Segment 1) (Segment 2) segments
Operating revenue 2550904405.05 2745307551.87 0.00 5296211956.92
Operating cost 1600658539.50 1135736241.22 0.00 2736394780.72
Impairment losses of assets and
17247064.3126512004.700.0043759069.01
credit impairment losses
Depreciation and amortisation 100487378.20 134790313.91 0.00 235277692.11
Operating profit/loss 220257774.87 384722317.71 54085269.57 659065362.15
Non-operating income and expenses 0.00 0.00 -13436457.45 -13436457.45
Assets and liabilities
Total assets 8598055259.81 3822081114.72 5597625527.41 18017761901.94
Total liabilities 1681713138.82 1458383582.83 2601705750.61 5741802472.26226
Section VIII Financial Report
(3) In cases where the Company has no reporting segments or if it cannot disclose the total assets and total liabilities of each reporting segment
the reasons should be explained.
(4) Other description
7. Other important transactions and matters affecting the decision of investors
7.1 Urban Renewal Project of Winner Industrial Park
(1) Overview
On 6 April 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 and reconstruction of urban
renewal and reconstruction of Winner Industrial Park in Longhua District Shenzhen City (hereinafter referred to as “the Project”). The scope of land to
be demolished for the Project is a state-owned land that has been transferred. The plot No. of the land is A819-0123 with a site area of 29064.49 square
metres 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 plot is second-class residential land. The plot has been registered for title with a construction area of 36625.89
square metres used for office plant and dormitory. The Company shall be the sole subject of rights to the said plot and all the buildings (structures) and
appendages thereon. The first to sixth floors of the 2nd office building the first to sixth floors of the 3rd dormitory building and the first to sixth floors of
the 4th dormitory building have been mortgaged at present.
(2) Cooperation method
The Company agrees to entrust the underlying plot and buildings to Galaxy Real Estate for application for approval of the urban renewal unit plan and
accepts the relocation compensation provided by Galaxy Real Estate according to the conditions agreed in the agreement. Galaxy Real Estate is
responsible for all the work related to the declaration of renewal unit plan of the underlying plot and buildings and implementation of urban renewal as
well as the relocation compensation and demolition and reconstruction funds and enjoys the interest in the renewal project as the single market
implementer. After the renewal and reconstruction of the underling plot and buildings is approved as an urban renewal unit plan Galaxy Real Estate shall
discuss with the Company among others the specific transformation and development intensity planned purposes and indicators in advance of the
formal application for construction but the final details shall be subject to the approval of relevant government departments.Considerations for the cooperation will be paid by Galaxy Real Estate to the Company through relocation compensations payment. The Company
voluntarily chooses a relocation compensation method that combines monetary compensation and title exchange (relocation). Specifically: 1) the
monetary compensations amount to RMB415 million; 2) the area of title exchange (relocation) attributable to Party B shall be determined at 40% of the
gross floor area for sale based on the area determined in the final approval of the special planning of the renewal unit of the Project.
(3) Progress
The Company held the 14th meeting of the third session of Board of Directors on 12 June 2023 and the first Extraordinary General Meeting of
Shareholders in 2023 on 7 July 2023 to review and approve the Proposal on Executing Relevant Agreements on Relocation Compensation and
Resettlement for the Urban Renewal Units of the Winner Industrial Park. The Company cooperated with Shenzhen Xingda Real Estate Development Co.Ltd. (hereinafter referred to as “Xingda”) and signed the Agreement on Relocation Compensation and Resettlement for Urban Renewal Units of the
Winner Industrial Park in Longhua District in Shenzhen the Relinquishment of Real Estate Rights Statement and other relevant documents with Xingda
on the plot and above-ground buildings of the Winner Industrial Park in Longhua District of Shenzhen City.Upon signing the above documents the Company and Xingda actively advanced the transaction. The Project received the Reply Letter from theShenzhen Longhua District Urban Renewal and Land Preparation Bureau on the Approval Status of the “Urban Renewal Unit Planning of WinnerIndustrial Park in Longhua Street Longhua District” (Shenhua Renewal Letter [2023] No. 25). According to the letter the approval status indicates that
the use of land in the Winner Industrial Park has been changed from current Class I industrial land to planned Class II residential land + commercial land.The Company vacated the industrial park and handed it over to Xingda on 17 July 2023. The two parties signed the Transfer Confirmation Letter and
settled utility fees. Then Xingda began to demolish old buildings.227
Section VIII Financial Report
In light of the significant changes in the real estate market following an amicable negotiation the Company and Xingda signed the Confirmation Letter
on the Revocation of the “Relinquishment of Real Estate Rights Statement” on 29 January 2024 which sets forth that: the Project will be temporarily
halted and the Company retrieved all Relinquishment of Real Estate Rights Statement according to the agreement and rescinded all the statements
therein.The Company held the 23rd meeting of the third session of Board of Directors on 26 July 2024 and the second Extraordinary General Meeting of
Shareholders in 2024 on 12 August 2024 to review and approve the Proposal on Executing Relevant Supplementary Agreements on Relocation
Compensation and Resettlement for the Urban Renewal Units of the Winner Industrial Park. On 19 August 2024 the Company and Xingda and its
subsidiary Galaxy Real Estate signed the Supplementary Agreement I and II to the Relocation Compensation and Resettlement Agreement and the
Supplementary Agreement I to the Agreement (collectively referred to as the “Supplementary Agreements”). According to the Supplementary
Agreements the principles for distribution of compensations and titles of relocation properties had changed. The area of office properties and commercial
properties attributable to the Company remains unchanged (39240 square meters and 200 square meters respectively) while the area of residential
properties and the amount of compensations attributable to the Company are linked to the actual average transaction price of commercial housing
obtained by Xingda. The Supplementary Agreements also stipulate that the office property commercial property and residential property attributable to
the Company shall be delivered within four years after the construction license is obtained for the plot but the delivery date shall be postponed
accordingly in case of force majeures or delay caused by changes in government policies and approvals during the above period.As at 30 June 2025 the Company received a total of RMB250 million in cash including: a deposit of RMB50 million in April 2017 a prepaid relocation
compensation of RMB100 million in February 2020 and monetary compensation of RMB100 million in July 2023 as agreed upon in the Relocation
Compensation and Resettlement Agreement all of which were included into other payables at the end of year. As at 30 June 2025 the land was not
transferred and was recorded in other non-current assets. At present Xingda Company has obtained the confirmation letter of the implementing entity for
this project and is currently engaged in the demolition of the building.
7.2 Heyuan Investment and Construction Project (Heyuan Project)
(1) Background
In 2016 as guided and encouraged by the Shenzhen Longhua District Committee and District Government the Company plans to move part of the
production and logistics functions to Heyuan Zijin Linjiang Industrial Park in response to the policy of pairing assistance between Heyuan City and
Shenzhen City. In May 2016 the Company and the People’s Government of Zijin County of Heyuan City signed the Agreement on Investment in the
Construction of Medical Package and Cotton Household Goods Production Project (hereinafter referred to as the “Investment Agreement”) with a
construction area of 200000 square metres.After the agreement was signed and the project started construction the government required all construction in Zijin Linjiang Industrial Park to suspend
due to conflicts between the project site and the planned Heyuan East Station of Jiangxi-Shenzhen Highspeed Railway and the High-speed Railway New
Town. Meanwhile the relevant land use procedures were suspended.
(2) Progress
In June 2019 the Detailed Regulatory Planning and Detailed Constructional Urban Design of the Core Area of Heyuan High-speed Railway New Town
was published for public notification from 22 June 2019 to 22 July 2019. According to the final public notification it is determined that the square in
front of Heyuan East Station of High-speed Railway National Highway 205 and the High-speed Railway New Town overlaps with the land of Heyuan
Project.In October 2019 the Company signed a tripartite agreement with the People’s Government of Zijin County and the Management Committee of Heyuan
Jiangdong New District to clarify the overall resolution plan. The land used for Heyuan Project and its aboveground buildings will be reclaimed by the
People’s Government of Zijin County and the three parties agreed to determine the amount of compensation through arbitration. The People’s
Government of Zijin County paid RMB30 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 confirmed the
termination of the original Investment Agreement and the People’s Government of Zijin County shall bear attorney fees legal costs and other expenses
totaling RMB2655320.00 return the guarantee deposits for land transfer of RMB3 million to the Company and compensate for the Company’s
economic loss of RMB550 million. The People’s Government of Zijin County shall pay 50% of the amount before 31 December 2019 and 50% before 29
February 2020.228
Section VIII Financial Report
As at 30 June 2025 the Company received the guarantee deposits for land transfer of RMB3 million returned by the People’s Government of Zijin
County and the compensation of RMB335.5 million. The Company also handed over the project land aboveground buildings equipment and facilities
and relevant supporting materials to the People’s Government of Zijin County. Outstanding compensations of RMB217 million were included into other
receivables at the end of the year.
8. Others
None
XIX. Notes to Key Items of the Parent’s Financial Statements
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 432288896.05 360752595.26
1-2 years 13910165.56 3165440.79
2-3 years 1389560.73 967899.68
Over 3 years 2673860.37 2490041.24
3-4 years 305521.66 171106.91
4-5 years 107304.75 57900.37
Over 5 years 2261033.96 2261033.96
Total 450262482.71 367375976.97
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Category
Carrying amount Carrying amount
Provision Provision
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Including:
Provision for bad debts
450262482.71100.00%22053476.234.90%428209006.48367375976.97100.00%17767875.154.84%349608101.82
made on a collective basis
Including:
Aging analysis method 415852289.17 92.36% 22053476.23 5.30% 393798812.94 344944096.15 93.89% 17767875.15 5.15% 327176221.00
No credit risk group 34410193.54 7.64% 34410193.54 22431880.82 6.11% 0.00 0.00% 22431880.82
Total 450262482.71 100.00% 22053476.23 4.90% 428209006.48 367375976.97 100.00% 17767875.15 4.84% 349608101.82229
Section VIII Financial Report
Provision for bad debts made on a collective basis: Aging
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Within 1 year 400139736.47 20006986.82 5.00%
1-2 years 13910165.56 1391016.56 10.00%
2-3 years 1389560.73 416868.22 30.00%
3-4 years 305521.66 152760.83 50.00%
4-5 years 107304.75 85843.80 80.00%
Total 415852289.17 22053476.23
Description of the basis for determining provision for bad debts on a collective basis:
Where the provision for bad debts are made based on the general ECL model:
□Applicable √N/A
(3) Provision for bad debts accrued recovered or reversed
Provision for bad debts accrued:
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Write-off Others
Provision for bad debts 17767875.15 9796536.80 5510935.72 22053476.23
Total 17767875.15 9796536.80 5510935.72 22053476.23
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
The basis for determining the original provision ratio
Entity name Amount recovered or reversed Reasons for reversal Recovery method
for bad debts and its reasonableness230
Section VIII Financial Report
(4) Accounts receivable actually written off
Unit: RMB
Items Amount written off
Write-off of significant accounts receivable:
Unit: RMB
Nature of accounts Reasons for write- Write-off procedures Whether due to/from related
Entity name Amount written off
receivable off performed party transactions
Description of write-off of accounts receivable:
(5) Top 5 accounts receivable and contract assets with closing balances by debtor
Unit: RMB
Closing balance of bad debt
Closing Closing balance of Percentage of total closing
Closing balance of provision for accounts
Entity name balance of accounts receivable balance of accounts
accounts receivable receivable and impairment
contract assets and contract assets receivable and contract assets
allowances for contract assets
Ranking first 22570208.55 0.00 22570208.55 5.01% 1128510.43
Ranking second 19800537.41 0.00 19800537.41 4.40% 990026.87
Ranking third 18645910.15 0.00 18645910.15 4.14% 932295.51
Ranking fourth 17126141.69 0.00 17126141.69 3.80% 1103504.17
Ranking fifth 13284548.73 0.00 13284548.73 2.95% 664227.44
Total 91427346.53 0.00 91427346.53 20.30% 4818564.42
2. Other receivables
Unit: RMB
Items Closing balance Opening balance
Dividends receivable 3333744.00 9404946.00
Other receivables 236616522.66 157621914.96
Total 239950266.66 167026860.96231
Section VIII Financial Report
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Items Closing balance Opening balance
2) Significant overdue interest
Unit: RMB
Borrower Closing balance Overdue time Reason for overdue Impairment or not and basis for judgment
Other descriptions:
3) Disclosure by bad debt provision accrual method
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Transfer/Write-off Other changes
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for
Entity name Recovery method
reversed reversal bad debts and its reasonableness
Other descriptions:
5) Dividends receivable actually written off
Unit: RMB
Items Amount written off232
Section VIII Financial Report
Write-off of significant dividends receivable
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related
Entity name Amount written off
assets off performed party transactions
Description of write-off of receivables financing:
Other descriptions:
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Longterm Medical 6071202.00
Hong Kong Winner 3333744.00 3333744.00
Total 3333744.00 9404946.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Impairment or not and basis for
Item (or investee) Closing balance Aging Reasons for non-recovery
judgment
3) Disclosure by bad debt provision accrual method
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Provision Recovery or reversal Transfer/Write-off Other changes
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for bad
Entity name Recovery method
reversed reversal debts and its reasonableness
Other descriptions:233
Section VIII Financial Report
5) Dividends receivable actually written off
Unit: RMB
Items Amount written off
Write-off of significant dividends receivable
Unit: RMB
Nature of contract Reasons for write- Write-off procedures Whether due to/from related party
Entity name Amount written off
assets off performed transactions
Description of write-off of receivables financing:
Other descriptions:
(3) Other receivables
1) Classification by nature
Unit: RMB
Nature of contract assets Closing balance Opening balance
Compensation for investment and construction project of Winner
217155320.00217155320.00
Medical (Heyuan)
Amounts due from/to related parties 121362446.71 43000000.00
Deposit and guarantee deposit 3660348.49 3765362.49
Employee pretty cash 332085.50 340211.01
Others 3035372.27 2256800.14
Total 345545572.97 266517693.64
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 128390252.97 49362373.64
Over 3 years 217155320.00 217155320.00
Over 5 years 217155320.00 217155320.00
Total 345545572.97 266517693.64234
Section VIII Financial Report
3) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Category
Carrying amount Carrying amount
Provision Provision
Amount Proportion Amount Amount Proportion Amount
ratio ratio
Provision for bad debts
made on an individual 217155320.00 62.84% 108577660.00 50.00% 108577660.00 217155320.00 81.48% 108577660.00 50.00% 108577660.00
basis
Including:
Provision for bad debts
128390252.9737.16%351390.310.27%128038862.6649362373.6418.52%318118.680.64%49044254.96
made on a collective basis
Including:
Aging group 3367457.77 0.97% 168372.89 5.00% 3199084.88 2597011.16 0.97% 129850.56 5.00% 2467160.60
Deposit and guarantee
3660348.491.06%183017.425.00%3477331.073765362.481.42%188268.125.00%3577094.36
deposit
No credit risk group 121362446.71 35.12% 121362446.71 43000000.00 16.13% 43000000.00
Total 345545572.97 100.00% 108929050.31 31.52% 236616522.66 266517693.64 100.00% 108895778.68 40.86% 157621914.96
Provision for bad debts made on an individual basis
Unit: RMB
Opening balance Closing balance
Name
Gross carrying Provision for bad Gross carrying Reasons for
Provision for bad debt Provision ratio
amount debt amount provision
Zijin County Government
People’s 217155320.00 108577660.00 217155320.00 108577660.00 50.00% receivables aged
Government over 5 years
Total 217155320.00 108577660.00 217155320.00 108577660.00
Category name of provision for bad debts by combination
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Aging group 3367457.77 168372.89 5.00%
Total 3367457.77 168372.89
Description of the basis for determining provision for bad debts on a collective basis:235
Section VIII Financial Report
Category name of provision for bad debts by combination: Margin / deposit combination
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
Deposit and guarantee deposit 3660348.49 183017.42 5.00%
Total 3660348.49 183017.42
Description of the basis for determining provision for bad debts on a collective basis:
Category name of provision for bad debts by combination: No credit risk group
Unit: RMB
Closing balance
Name
Gross carrying amount Provision for bad debt Provision ratio
No credit risk group 121362446.71 0.00 0.00%
Total 121362446.71 0.00
Description of the basis for determining provision for bad debts on a collective basis:
The no credit risk portfolio consists of intra-group related party transactions
Where the provision for bad debts are made based on the general ECL model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debt Lifetime ECLs Lifetime ECLs Total
12-month ECLs
(not yet credit-impaired) (credit-impaired)
Balance at 1 January 2025 318118.68 108577660.00 108895778.68
Balance at 1 January 2025
Provision 106697.98 106697.98
Reversal 73426.35 73426.35
Balance at 30 June 2025 351390.31 108577660.00 0.00 108929050.31236
Section VIII Financial Report
Criteria for stage classification and provision ratio for bad debts
Description of changes in the book balance of other receivables contributing to significant changes in the loss allowance in the current period
□Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Provision for bad debts accrued:
Unit: RMB
Changes for the Current Period
Category Opening balance Closing balance
Recovery or
Provision Transfer/Write-off Others
reversal
Provision for bad debt 108895778.68 106697.98 73426.35 108929050.31
Total 108895778.68 106697.98 73426.35 108929050.31
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount recovered or Reasons for The basis for determining the original provision ratio for
Entity name Recovery method
reversed reversal bad debts and its reasonableness
5) Other receivables actually written off
Unit: RMB
Items Amount written off
Write-off of significant dividends receivable:
Unit: RMB
Reasons for write- Write-off procedures Whether due to/from related
Entity name Nature of other receivables Amount written off
off performed party transactions
Description of write-off of other receivables:237
Section VIII Financial Report
6) Top 5 other receivables with closing balances by debtor
Unit: RMB
Proportion in total balance Closing balance of
Entity name Nature of other receivables Closing balance Aging
of other receivables (%) provision for bad debts
Receivables related to
Ranking first 217155320.00 Over 5 years 62.84% 108577660.00
Heyuan project
Amounts due from/to
Ranking second 119449013.36 Within 1 year 34.57% 0.00
related parties
Deposit and guarantee
Ranking third 2311115.80 4-5 years 0.67% 115555.79
deposit
Amounts due from/to
Ranking fourth 1913433.35 Within 1 year 0.55% 0.00
related parties
Ranking fifth Others 784886.41 Within 1 year 0.23% 39244.32
Total 341613768.92 98.86% 108732460.11
7) Presented as “Other receivables” due to centralised management
8) Unit: RMB
Other descriptions:
3. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Items
Impairment
Gross carrying amount Carrying amount Gross carrying amount Impairment allowance Carrying amount
allowance
Investment in subsidiaries 5327416769.68 138692158.62 5188724611.06 5313477317.52 138692158.62 5174785158.90
Investment in associates and
20926314.6420926314.6420712599.9320712599.93
joint ventures
Total 5348343084.32 138692158.62 5209650925.70 5334189917.45 138692158.62 5195497758.83238
Section VIII Financial Report
(1) Investment in subsidiaries
Unit: RMB
Impairment Changes for the period Impairment
Opening balance Closing balance
Investee allowance allowance
(Carrying amount) Additional Reduced Provision for Others (Carrying amount) Opening balance investment investment impairment Closing balance
Winner Medical
267797569.52917825.21268715394.73
(Huanggang)
Winner Medical
27430498.28563210.9327993709.21
(Jingmen)
Shenzhen Purcotton 136834432.61 8600768.94 145435201.55
Winner Medical
33873168.82730088.2234603257.04
(Chongyang)
Winner Medical (Jiayu) 236645191.92 625789.90 237270981.82
Winner Medical
39947592.24750947.8840698540.12
(Tianmen)
Winner Medical (Hong
1456720.001456720.00
Kong)
Winner Medical
18651523.18166877.3018818400.48
(Yichang)
Winner Medical
0.004086994.480.004086994.48
Malaysia
Winner Medical
100000000.00100000000.00
(Heyuan)
Winner Medical
800166877.31500631.92800667509.23
(Wuhan)
PureH2B 150000000.00 150000000.00
Longterm Medical 727540000.00 727540000.00
Winner Guilin 430272760.02 69908023.73 542351.26 430815111.28 69908023.73
Winner Medical (Hunan) 687339783.06 64697140.41 346270.43 687686053.49 64697140.41
Junjian Medical 192041719.33 69532.20 192111251.53
Shanghai Hongsong 39255994.87 125157.97 39381152.84
Pan-China (H.K.) 1285531327.74 1285531327.74
Total 5174785158.90 138692158.62 13939452.16 5188724611.06 138692158.62239
Section VIII Financial Report
(2) Investment in associates and joint ventures
Unit: RMB
Changes for the period
Opening Closing
Opening balance balance of Additi Reduc Investment gains Adjustment Provision Closing balance balance of
Investee Other
(Carrying amount) impairment onal ed and losses on other Cash dividends or for (Carrying amount) impairment
changes in Others
provision invest invest recognised under comprehensiv prots declared impairme provision
equity
ment ment the equity method e income nt
I. Joint ventures:
II. Associate
Chengdu Winner
Likang Medical 20712599.93 213714.71 20926314.64
Products Co. Ltd.Sub-total 20712599.93 213714.71 20926314.64
Total 20712599.93 213714.71 20926314.64
The recoverable amount has been determined based on the fair value less costs of disposal
□Applicable √N/A
The recoverable amount has been determined based on the present value of expected future cash flows
□Applicable √N/A
Reasons for the difference between the above information and the information used in the prior year’s impairment testing or external information
Reasons for the difference between the information used in the prior year’s impairment testing and the actual situation of the current year
(3) Other description
4. Revenue and cost of sales
Unit: RMB
Amount for the current period Amount for the last period
Items
Revenue Cost Revenue Cost
Primary business 1321615084.12 924739742.32 1108269598.31 842869692.65
Other businesses 85665531.38 5809198.94 34615567.06 1013798.51
Total 1407280615.50 930548941.26 1142885165.37 843883491.16240
Section VIII Financial Report
Breakdown of revenue and cost of sales:
Unit: RMB
Segment 1 Segment 2 Total
Contract classication
Operating Operating Operating Operating Operating Operating Operating Operating
revenue cost revenue cost revenue cost revenue cost
Business type
Including:
Classification by region of
operation
Including:
Market or customer type
Including:
Contract type
Including:
Classification by time of
goods transfer
Including:
Classification by contract
term
Including:
Classification by sales
channel
Including:
Total
Information relating to performance obligations:
Nature of the
Types of quality
Time of fullling goods that the
Signicant payment Whether it is a Returns refunds and assurance provided by
Items performance entity has
terms principal other similar obligations the Company and related
obligations promised to
obligations
transfer
Other description
Information relating to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue related to performance obligations that have been contracted but not yet performed or partially
performed is RMB0.00. Of this amount: RMB0.00 is expected to be recognised in YYYY and RMB0.00 is expected to be recognised in YYYY.241
Section VIII Financial Report
Significant contract changes or significant transaction price adjustments
Unit: RMB
Items Accounting treatment Amount affected on revenue
Other descriptions:
5. Investment income
Unit: RMB
Items Amount for the current period Amount for the last period
Long-term equity investment income under the cost method 5614438.27
Long-term equity investment income under the equity method 213714.71 115196.26
Investment income from purchasing financial products 21883880.59 38973085.80
Total 27712033.57 39088282.06
6. Others
XX. Supplemental Information
1. Schedule of non-recurring profit or loss
√Applicable □N/A
Unit: RMB
Items Amount Explanation
Profit or loss on disposal of non-current assets -6664001.60
Government grants recognized in profit or loss (excluding those related to the company’s normal
operating activities consistent with national policy granted based on established criteria and having a 19741844.15
continuing impact on the Company’s profit and loss)
Changes in fair value and gains and losses from the disposal of financial assets and financial liabilities
held by non-financial enterprises (excluding effective hedging transactions directly related to the 31133359.39
Company’s normal operating activities)
Other non-operating income and expenses excluding the items above -5436207.80
Less: Income tax effect 6117613.09
Effect on non-controlling interests (after tax) 1283103.24
Total 31374277.81 --242
Section VIII Financial Report
Details of other items classified as non-recurring gains and losses:
□Applicable √N/A
The Company had no details of other items classified as non-recurring gains and losses.Explanation on circumstances under which items specifically identified as non-recurring gains and losses in the Information Disclosure Interpretative
Announcement No. 1 for Companies Publicly Issuing Securities – Non-recurring Gains and Losses are classified as items of recurring gains and losses
√Applicable □N/A
Items Reason
Complies with national policy regulations meets established standards and has a continuing impact on
Cotton transportation subsidies
profit or loss
Interest income from large-denomination
The Company’s routine cash management practices with a continuing impact on profit or loss
certificates of deposit
2. Return on equity (ROE) and earnings per share (EPS)
Earnings per share
Weighted
Prot for the reporting period average return
Basic earnings per share Diluted earnings per share
on net assets
(RMB/share) (RMB/share)
Profit attributable to ordinary shareholders of the Company 4.32% 0.8449 0.8449
Profit attributable to ordinary shareholders of the Company after
4.05%0.79100.7910
excluding non-recurring items
3. Differences in Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences in profit and net assets between financial reports prepared under IAS and CAS
□Applicable √N/A
(2) Differences in profit and net assets between financial reports prepared under foreign accounting standards and CAS
□Applicable √N/A
(3) Explanation of the reasons for differences in accounting information prepared under domestic and foreign accounting standards. Where
accounting information audited by a foreign auditor is reconciled for differences the name of the auditor shall be disclosed
□Applicable √N/A
4. Others243
Section VIII Financial Report
Tel.: 0755-28066858
Email: investor@winnermedical.com
Address: F42 Building 2 Huilong Business Center Beizhan Community Minzhi Subdistrict Longhua District Shenzhen
Sales hotline: 400-689-2896
Quality service hotline: 400-689-2898
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