2026
Semi-Annual Report
Winner Medical Co. Ltd.Semi-Annual Report
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
Improvement.Section I
Important Notes
Contents and Definitions
Semi-Annual Report
Semi-Annual Report
The Board of Directors the Directors and senior The profit distribution plan approved at this Board of
management of the Company guarantee that this Directors meeting is as follows: based on
semi-annual report is truthful accurate and complete; 574924166 shares representing the total share
it contains no false records misleading statements or capital of 582970928 shares as of 21 August 2026
significant omissions; and they bear individual and less the 8046762 shares held in the special securities
joint legal liabilities. account for repurchases the Company will distribute
a cash dividend of RMB5.0 (tax inclusive) for every
Li Jianquan the Company's principal executive 10 shares to all shareholders for an estimated total
officer Fang Xiuyuan the person in charge of cash dividend of RMB287462083.00 (tax inclusive).accounting affairs and Zhao Yan the person in No bonus shares will be issued and no shares will be
charge of the accounting department (chief accounting converted from capital reserves. During the period
officer) declare that they guarantee the truthfulness from the disclosure of the profit distribution plan
accuracy and completeness of the financial report in through its implementation if the total number of
this semi-annual report. shares entitled to the distribution changes the
Company will make corresponding adjustments based
All Directors have attended the Board of Directors on the principle that the cash dividend per share
meeting to review this semi-annual report. remains unchanged while the total cash dividend
amount is adjusted accordingly.The forward-looking statements contained in this The Company's total cash dividends and share
semi-annual report regarding future development repurchases for the first half of 2026 amounted to
strategies performance plans and other similar RMB416903087.74 representing 81.19% of the net
matters represent the Company’s goals and are of a profit attributable to shareholders of the listed
planning nature. Their realization depends on various company for the first half of 2026. This amount
factors including market conditions and therefore includes: (1) a cash dividend of RMB5.0 (tax
involves uncertainties. These statements do not inclusive) for every 10 shares to all shareholders for
constitute a forecast of the Company’s future annual the first half of 2026 with an estimated total cash
profitability nor do they represent a substantive dividend of RMB287462083.00 (tax inclusive)
commitment to investors or other stakeholders. Both representing approximately 55.98% of the net profit
investors and other stakeholders should maintain attributable to shareholders of the listed company for
sufficient awareness of the risks involved and the first half of 2026; and (2) from January to June
understand the differences between plans forecasts 2026 the Company repurchased 4604262 shares
and commitments. Investors are advised to exercise through the special securities account for repurchases
caution and be aware of investment risks. via centralized bidding with a total transaction
amount of RMB129441004.74 (excluding
The Company has detailed the possible risks and transaction costs) representing approximately
corresponding countermeasures in its operations in 25.21% of the net profit attributable to shareholders
"XI. Risks Faced by the Company and of the listed company for the first half of 2026.Countermeasures" under "Section III Management
Discussion and Analysis" of this report. Investors are
advised to pay close attention to the relevant
information.
3
Important Notes目录
CONTENTS
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Key Financial Indic... 6
Section III Management Discussion and Analysis ..... 14
Section IV Environmental Social and Corporate Gove.. 52
Section V Important Matters ........................ 59
Section VI Changes in Shares and Information on Sh.. 65
Section VII Bonds .................................. 72
Section VIII Financial Report ...................... 73
List of Documents Available for
Inspection
(1) Financial statements signed and sealed by the Company’s principal executive officer the
person in charge of accounting affairs and the head of the accounting department (chief
accounting officer).
(2) Originals of all documents and announcements of the Company publicly disclosed during
the Reporting Period.Semi-Annual Report
Definitions
Term Definition
Winner Group Group Company Winner Medical Co. Ltd.Reporting Period 1 January 2026 to 30 June 2026
Winner Medical Serious medical care under the medical business and consumer medical care business
Shenzhen Purcotton Technology Co. Ltd. and its
Purcotton subsidiaries a wholly-owned subsidiary of the
Company
Zhejiang Longterm Medical Technology Co. Ltd. a
Longterm Medical company in which the Company acquired a 55% stake
in 2022
Winner Medical (Hunan) Co. Ltd. a company in
Winner Medical (Hunan) which the Company acquired a 68.70% stake after
acquisition and capital increase in 2022
Winner Guilin Winner Guilin Latex Co. Ltd. a company in which the Company acquired a 91.74% stake in 2022
Junjian Medical Shenzhen Junjian Medical Device Co. Ltd. of which the Company has acquired 100% equity in 2022
GRI GRI USA Global Resources International Inc. a company in which the Company acquired a 75.20% stake in 2024
Yuan 10 thousand Yuan 100 million Yuan RMB RMB10000 RMB100 million
Section II
Company Profile and Key
Financial Indicators
Semi-Annual Report
Company Overview
Founded in 1991 Winner Group (300888.SZ) went public on the Shenzhen Stock Exchange in
September 2020. Through 35 years of exploration and practice it has evolved into a holistic
health enterprise synergistically converging medical innovation and consumer wellnessecosystems. Winner Group driven by the vision of “Caring Health Cherishing Life andProtecting the Environment for A Better World” owns two major brands: “Winner Medical” and
“Purcotton”. Its products cover a wide range of segments including wound care infection
prevention operating room consumables personal care home care maternity and baby care andhome textiles and apparel. Adhering to the core business principles of “Quality over the ProfitBrand over the Speed Social Value over the Corporate Value” and guided by the developmentstrategy of “Product Leadership Operational Excellence Brand Advancement and DigitalEmpowerment” the Company is pursuing dual-track advancement in medical and consumer
goods sectors; driving collaborative expansion across domestic and global markets; enabling
convergent growth of online and offline channels; upholding altruism and long-termism —
committed to delivering safe premium-quality cost-effective and experience-driven products
and services for global users.Caring Health Cherishing Life and Protecting the Environment for A Better World!
Dual-Engine
Growth: Two
Core Businesses
Building a Product-Leading One-Stop Medical Consumables Company Committed to Becoming the Preferred Global Cotton Brand
Key Clinical Scenarios · Products + Standards + Evidence + Services 100% Cotton Only · Strategic Categories + Cotton Standards + Core Scenarios
Product Leadership Operational Excellence Brand Advancement Digital Empowerment
Material Technology and Scenario
Innovation End-to-End Processes and Global Synergy Building Professional Trust and Becoming Online Processes · Data-Driven · AI
the Preferred Brand Embedded
Breakthroughs in Key Technologies Quality · Efficiency · Cost · Delivery Winner Medical: Professional Solutions Small Front Platform + Big Middle Platform
Building Strategic Categories Purcotton: Preferred Cotton Brand Safety and Governance Assurance
Sustainability Embedded in Strategy and Operations: Sound Governance · Product Leadership · Protecting the Planet · Employee
Development · Community Engagement Advancing Toward the 2030 Carbon Peak Target
Core Capabilities Material Technology · R&D Innovation · Medical-Grade Quality · Smart Manufacturing · Global Supply Chain · Organization and Talent
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 Improvement.Business Overview
Semi-Annual Report
Global Production Capacity
Country Location of Facilities
China Guangdong Province (1) Hubei Province (8) Hunan Province (1) Zhejiang Province (2) Guangxi Zhuang Autonomous Region (1) Anhui Province (1)
Overseas Mexico Vietnam the United States the Dominican Republic
Awards
01 The Project of Winner Medical was awarded 08 The "Baby Welcome Gift Organic Cotton 10-
the second prize in the Science and Piece Set Gift Box" submitted by Shenzhen
Technology Progress Awards by the China Purcotton Technology Co. Ltd. was selected
National Textile and Apparel Council for the "2025 Top Ten Innovative Textile
02 Winner Medical (Huanggang) Winner Products" list
Medical (Jiayu) and Winner Medical 09 The comfort evaluation of Purcotton's pure
(Tianmen) were awarded the "Five-Star cotton sleepwear was included in the "Science
Environmental Factory" by the China and Technology Guidance Project of the China
Nonwovens & Industrial Textiles Association National Textile and Apparel Council"
03 In July 2026 Wind updated its annual ESG 10 The Company was awarded the highest A
rating upgrading the Company from A to AA rating for information disclosure of listed
04 Winner Medical (Jingmen) received the Gold companies by the Shenzhen Stock Exchange
Medal on the Ecovadis platform for 2024
05 Winner Medical (Chongyang) received the 11 Selected for 2025 Outstanding Practice Cases
Gold Medal on the Ecovadis platform in Sustainability of Listed Companies by the
06 Purcotton was recognised as a "Continuous China Association for Public Companies
Innovation Unit" by the Ministry of Industry 12 Selected for 2024 Best Practice Cases in the
and Information Technology & China Textile Directors of Board of Listed Companies by the
Information Center China Association for Public Companies
07 Purcotton won the "London Design Awards" in 13 Winner Medical was selected for the "2025
2025 Health Industry Brand List" at the China
Health Industry Ecological Conference and
won the "CPEO Gold Award"
Semi-Annual Report
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 稳健医疗
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
F42 Building 2 Huilong Business F42 Building 2 Huilong Business
Address Center Beizhan Community Center Beizhan Community Minzhi Subdistrict Longhua Minzhi Subdistrict Longhua
District Shenzhen 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
The Company's registered address office address and postal code website email address etc.remained unchanged during the Reporting Period. For details please refer to the 2025 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 stock exchange website and media name and website for disclosure of the Company's semi-
annual reports and the location for keeping the Company's semi-annual reports remained
unchanged during the Reporting Period. For details please refer to the
2025 Annual Report.
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 2025
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
Current Reporting Same period last Reporting Period Period year compared with the same
period of the previous year
Operating revenue (RMB) 5486211258.52 5296211956.92 3.59%
Net profit attributable to shareholders
of the listed company (RMB) 513499129.90 491998009.07 4.37%
Net profit attributable to shareholders
of the listed company after deducting
non-recurring gains and losses 462326436.70 460623731.26 0.37%
(RMB)
Net cash flows from operating
activities (RMB) 313432891.06 339925774.07 -7.79%
Basic earnings per share
(RMB/share) 0.8821 0.8449 4.40%
Diluted earnings per share
(RMB/share) 0.8821 0.8449 4.40%
Weighted average return on net assets 4.36% 4.32% 0.04%
Increase/decrease at the
End of the Reporting End of the previous end of the Reporting Period year Period compared to the
end of the previous year
Total assets (RMB) 18971905602.01 18404858027.22 3.08%
Net assets attributable to shareholders
of listed companies (RMB) 11682259501.02 11516711030.45 1.44%
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
Semi-Annual Report
The Company had no difference in net profit and net assets between financial reports prepared
under International Accounting Standards and Chinese Accounting Standards during the
Reporting Period.
2. Differences in Net Profit and Net Assets between Financial Reports Prepared under
Overseas Accounting Standards and Chinese Accounting Standards
?Applicable √N/A
The Company had no difference in net profit and net assets between financial reports prepared
under overseas 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
Item Amount Description
Gains and losses on disposal of non-current assets (including reversal of
previously recognised impairment losses) -1131350.65
Government grants recognised 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 continuing impact on 21604303.31
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 Company’s normal 48085316.51
operating activities)
Other non-operating revenue and expenses excluding the items above -1997579.37
Less: Income tax effect 11880929.13
Effect on non-controlling interests (after tax) 3507067.47
Total 51172693.20
Details of other items classified as non-recurring gains and losses:
?Applicable √N/A
The Company had no details of other items classified as non-recurring gains and losses.Explanation on circumstances under which items specifically identified as non-recurring gains
and losses in the Information Disclosure Interpretative Announcement No. 1 for Companies
Publicly Issuing Securities – Non-recurring Gains and Losses are classified as items of
recurring gains and losses
√Applicable ?N/A
Item Reasons
Complies with national policy regulations meets
Cotton transportation subsidies established standards and has a continuing impact on
profit or loss
Interest income from large-denomination certificates The Company's routine cash management practices
of deposit with a continuing impact on profit or loss
Section III
Management
Discussion and
Analysis
Semi-Annual Report
I. Main Operations of the Company during the Reporting Period
The Company is subject to the disclosure requirements for “Medical Device Business” in the
Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 4 – Industry
Information Disclosure for Growth Enterprise Market.The Company is subject to the disclosure requirements for “Textile and Apparel RelatedBusiness” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 –
Industry Information Disclosure.(I) Main Operations of the CompanyWinner Group driven by the vision of “Caring Health Cherishing Life and Protecting theEnvironment for A Better World” owns two major brands: “Winner Medical” and “Purcotton”
specializing in medical and consumer segments respectively. With continuous innovation and
expansion of our business scope our products cover a wide range of segments including wound
care infection prevention operating room consumables personal care home care maternity andbaby care and home textiles and apparel. Adhering to the core business principles of “Qualityover the Profit Brand over the Speed Social Value over the Corporate Value” and guided bythe development strategy of “Product Leadership Operational Excellence Brand Advancementand Digital Empowerment” the Company dedicates itself to providing safe high-quality cost-
effective products and services with a strong user experience for customers worldwide.
1. Medical consumables
In the 1990s the international medical dressing market was dominated by European and
American companies in terms of technical standards and market share. Domestic Chinese
products lacked competitiveness due to lagging production standards and inconsistent quality.Against this backdrop driven by the vision of “Bringing Chinese Medical Dressings to theWorld” Mr. Li Jianquan the founder of Winner Group established the Winner Medical brand in
1991. Over the 35 years of development Winner Medical has built a complete industrial chainencompassing “raw material procurement – core material R&D – product manufacturing –terminal sales”. Through continuous R&D and upgrades the Company’s product portfolio has
been optimized and now includes traditional wound care and bandaging advanced wound
dressings operating room consumables infection prevention and healthcare and personal care
products. Winner Medical has maintained stringent quality standards throughout its development
establishing an international level quality management system early on in the industry. Its
products have received authoritative international certifications including the EU CE marking
US FDA clearance and Japanese Ministry of Health Labour and Welfare approval. With
production capacity in China the United States Vietnam and the Dominican Republic Winner
Medical has established global credibility and supply capabilities as a professional medical brand.In terms of distribution Winner Medical pursues a three-pronged approach: “overseas business +domestic professional medical market + daily consumer medical market”. Through OEM ODM
and its own brand 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 towards its strategic goal of becoming a “one-stop solution for medical consumables”.
2. Consumer goods
To address the global industry challenge of cotton gauze shedding lint and fluff the Winner
Medical team conducted thousands of experiments and developed a patented pure cotton
spunlace non-woven fabric technology. Capitalizing on the natural soft breathable
biodegradable and eco-friendly properties of cotton fiber the Group launched the brand
Purcotton in 2009 innovatively applying rigorous production standards born of its medical
heritage to pure cotton goods. From its inception Purcotton has insisted on using high-quality
cotton from around the world maintaining strict quality control and aiming to build a nationally
trusted brand. Driven by the vision of "Pure Cotton Changes the World" Purcotton continuously
promotes the benefits of cotton and has pioneered over ten new product categories including
cotton tissues pure cotton top sheet sanitary napkins and pure cotton top sheet diapers.Currently Purcotton operates hundreds of brand stores in over 100 cities across China and has
established an omni-channel sales network across major e-commerce platforms social commerce
platforms and nationally renowned supermarket chains. Leveraging its core competitive edges
of "Medical Heritage; Cotton-Centric Philosophy; Quality DNA" Purcotton has cultivated a
brand image of "Comfort Commitment; Health Assurance; Eco-Consciousness" earning the
favor of a broad consumer base. In the future Purcotton will remain committed to its brand
initial aspiration of "We focus on 100% cotton and unlock its full potential to develop the high
standard with the best quality of cotton products" creating and leading a "Reassurance
Wellbeing Sustainability" pure cotton lifestyle.Semi-Annual Report
(II) Main Products and Applications
The Company’s products in the medical segment include advanced wound dressings operating
room consumables traditional wound care and bandaging infection prevention healthcare and
personal care and other products. The products in the consumer segment include dry and wet
cotton tissues feminine hygiene products other non-woven products baby and child apparel and
products adult apparel and other woven products.The main product categories and illustrations of some products in the Company's medical
segment are shown below:
Product Categories Main Applications Specific Products Illustrations of Some Products
Applied in wound care
to provide a moist
wound healing Hydrocolloid dressings Advanced wound environment reduce scar dressings foam dressings dressing change dressings alginate
frequency and minimize dressings etc.further trauma
Operating room Applied in prevention of Surgical gloves surgical
consumables surgical site infections packs surgical gowns etc.Applied in wound
Traditional wound care exudate absorbing Medical cotton gauze
and bandaging wound dressing and bandages etc.sports protection
Applied in occupational Face masks protective
Infection prevention protection for medical clothing isolation personnel and patient gowns gloves shoe
isolation covers caps etc.Cleaning and
Applied in wound disinfection oral and
Healthcare & personal cleaning and nasal care medical-
care disinfection daily aesthetic repair
healthcare menstrual care travel
protection etc.Applied in health
Other products management to meet Injection and puncture
medical needs products test kits etc.The main product categories and selected product illustrations from the Company's consumer
business are shown below:
Product Categories Specific Products Illustrations of Some Products
Dry and wet cotton tissues Cotton tissues wet wipes etc.Feminine hygiene products Sanitary napkins overnight pads etc.Other non-woven products Cotton pads diapers disposable travel products etc.Baby and children’s sleepwear
Baby and child apparel and products outerwear underwear bath towels handkerchiefs and
swaddles etc.Adult apparel Adult sleepwear outerwear underwear socks etc.Other woven products Bedding bath products etc.(III) Main Business Model
Over the 35 years of continuous exploration and development Winner Group’s business model
has undergone significant transformation and upgrading. Our business scope has expanded from
medical consumables to consumer goods; our business model has shifted from OEM to
proprietary brand building from B2B to B2C from a sole focus on overseas markets to a
balanced approach between domestic and international markets; and our listing status has
transitioned from voluntary delisting on the US Nasdaq to listing on China’s A-share market. We
have evolved from “Made in China” to “Created in China” from product export to brand
empowerment and ultimately to thought leadership.Semi-Annual Report
Currently Winner Group has upgraded its digitalization from back-office support to a strategic
infrastructure spanning the entire value chain with a "small front platform + big middle
platform" system established to balance resource concentration and value creation. In R&D we
focus on independent development of core basic materials and continuous iteration and
upgrading of key product categories. Our medical sector actively pursues global patent and
product registration strategies while our consumer goods business leads the development of
several national standards and conducts carbon footprint verification for various products.Simultaneously we actively promote smart manufacturing and green manufacturing
technologies to enhance production efficiency and energy management. In procurement we
utilize diverse strategies including strategic sourcing and centralized purchasing combined with
mechanisms such as supplier qualification tiered classification management and performance
evaluation to build a sustainable supply chain ecosystem. We leverage digital systems like SRM
and PLM to achieve transparent full-process control and strengthen cost and risk management.In production aligned with the Company's strategic objectives we use Sales & Operations
Planning (S&OP) to guide the development of medium- and long-term strategic plans and short-
term production and procurement plans. This process involves all relevant upstream and
downstream departments balancing inventory and lead times based on dynamic customer
demand to ensure flexible production and efficient responsiveness. In sales Winner Medical has
established a professional sales network within the medical industry covering a vast number of
medical institutions and retail pharmacies and exporting medical consumables to numerous
countries and regions worldwide. Purcotton employs an omni-channel sales strategy in the
consumer goods market covering major e-commerce and social media platforms online while
operating brand stores in key cities and entering various supermarkets convenience stores and
other retail outlets offline. This online-offline integration enhances consumer experience and
strengthens brand influence.(IV) Key Performance Drivers
1. Alignment with industry trends: medical and consumer sectors in rapid development
In recent years improvements in global healthcare standards and increasing demand for daily
healthcare have driven a steady growth in the medical industry. Globally the aging population
and rising healthcare needs are expanding the medical device market providing ample room for
industry development. Domestically increasing government support for the medical device
industry and accelerated import substitution are creating a favorable environment for medical
consumables. Furthermore the implementation of policies such as centralized procurement
volume-based procurement SPD and DRG is continuously optimizing the medical consumables
industry towards stricter quality standards transparent competition and higher requirements for
comprehensive capabilities in R&D service and distribution. These industry changes benefit
large integrated companies and are expected to increase industry concentration.In the consumer goods industry steady macroeconomic recovery and stable income growth are
contributing to a positive trend of recovery and growth. The consumer market is diversifying and
becoming more personalized with notable trends including quality consumption
environmentally sustainable consumption Guochao economy and brand trust. Consumers'
pursuit of a better life increases their willingness to pay premium prices for high-quality products
and services creating significant market opportunities for companies focused on quality
enhancement and emotional value. The growing consumer preference for green and
environmentally friendly products is driving companies to increase investment and innovation in
sustainable development. The increasing popularity of Guochao economy favors products with
cultural significance and national characteristics. Brand trust is becoming a competitive barrier
with consumers increasingly choosing brands that consistently deliver reliable quality and
excellent service. Additionally niche segments such as health focused consumption self-care
consumption and aesthetically driven consumption are expanding rapidly. The current consumer
market offers substantial growth potential and opportunities for companies that can effectively
identify and adapt to trends.
2. Differentiated competitive advantages accelerating business growthDriven by the brand vision of “Caring Health Cherishing Life and Protecting the Environmentfor A Better World” Winner Group is pursuing dual-track advancement in medical and
consumer goods sectors; driving collaborative expansion across domestic and global markets;
enabling convergent growth of online and offline channels; upholding altruism and long-termism
and continues to strive towards Centennial Visionary Winner guided by the developmentstrategy of “Product Leadership Operational Excellence Brand Advancement and DigitalEmpowerment”.Winner Group began with its medical consumables business cultivating the industry for 35 years.It is one of the first domestic companies to establish a fully integrated industrial chainencompassing “raw material procurement – core material R&D – product manufacturing –terminal sales”. Winner Medical maintains stringent quality standards throughout its history and
established an international-level quality management system at the initial stage of its
engagement in the industry. Its products have received authoritative international certifications
including the EU CE marking US FDA clearance and Japanese Ministry of Health Labour and
Welfare approval establishing global credibility for the brand. Through strategic acquisitions of
leading companies in niche segments such as Longterm Medical Winner Medical (Hunan) and
Winner Guilin Winner Medical rapidly entered the injection and puncture consumables and
latex gloves markets laying the foundation for a one-stop medical consumables solution.Furthermore the Company continuously invests in R&D optimizes its product portfolio and
upgrades its advanced wound dressings operating room consumables and healthcare and
personal care products increasing the percentage of high-value-added products. Winner Medical
Semi-Annual Reportpursues a three-pronged distribution strategy: “overseas business + domestic professionalmedical market + daily consumer medical market”. In particular the Company’s rapid provision
of high-quality products in recent years significantly enhanced brand awareness and reputation
leading to the rapid development of its distribution channels. While strengthening its core
business Winner Medical also accelerates its global expansion through mergers and acquisitions.The acquisition of a controlling interest in the US-based medical company GRI strengthens its
overseas production capacity sales channels and localized operations. In the future WinnerMedical will continue to advance towards its strategic goal of becoming a “one-stop solution formedical consumables”.Purcotton the Winner Group’s consumer goods brand was established in 2009 with the vision
of “Pure Cotton Changes the World”. Adhering to the principle of “We focus on 100% cottonand unlock its full potential to develop the high standard with the best quality of cotton products”
Purcotton continuously promotes the benefits of cotton and has built a unique business model
focused on “pure cotton all categories all people”. In terms of products Purcotton insists on
using high-quality cotton from around the world applies rigorous standards born of its medical
heritage actively implements a popular product strategy continuously leverages technology and
innovation to meet consumer needs and has developed popular product categories such as cotton
tissues sanitary napkins newborn products and intimate apparel. Many of these categories hold
leading market positions driving overall sales growth. In terms of distribution Purcotton
employs an omnichannel strategy covering major e-commerce platforms social commerce
platforms and brand supermarkets. It also operates its own brand stores offline serving as
platforms for brand promotion product experience and customer service and establishes a
presence in physical supermarkets and convenience stores. This online-offline synergy drives
overall quality and growth. In brand building Purcotton leverages delivery of cotton value
celebrity endorsements original IP and cotton field runway shows to expand brand influence.With its core competitive edges of “Medical Heritage; Cotton-Centric Philosophy; QualityDNA” Purcotton has cultivated a brand image of “Comfort Commitment; Health Assurance;Eco-Consciousness” and has become a nationally trusted brand.II. Core Competitiveness Analysis
1. Dual-Engine Growth: Medical and Consumer Synergies for Enhanced Risk Resilience
Winner Group operates as a holistic health enterprise synergistically converging medical
innovation and consumer wellness ecosystems through its Winner Medical and Purcotton brands.The Company’s business scope has expanded from solely medical consumables manufacturing
to footprint in diverse fields including wound care infection prevention personal care home
care maternity and baby care and home textiles and apparel. Winner Medical’s emphasis on
product quality and innovative R&D forms the foundation of the Group’s development. As a
proprietary technology the “pure cotton spunlace non-woven fabric” process has seen its
application cross over from the medical sector to consumer goods pioneering new categories
such as cotton tissues and cotton inner layer masks. The Group’s two major business segments
centrally procure raw materials like cotton which enhances bargaining power and stabilizes
costs. Furthermore the sharing of production warehousing and logistics across the entire
industry chain effectively reduces manufacturing and management costs. Simultaneously the
medical heritage in quality control provides a solid foundation of quality for Purcotton’s safety
and trust enhancing Purcotton’s professional credibility brand reputation and customer loyalty.The synergistic and balanced development of these two business segments creates
complementary growth engines strengthens the Company’s resilience against economic cycles
effectively balances short-term industry fluctuations with long-term performance growth and
establishes a solid foundation for high-quality development.
2. Long-Termism: the Cultural Core for Development
Winner Group embraces the long-termism and altruism philosophy prioritizing brand ethics and
adhering to compliant operations and sustainable development. We uphold the core businessprinciples of “Quality over the Profit Brand over the Speed Social Value over the CorporateValue” to ensure high-quality products and services. Guided by the values of “RelentlessEndeavor; Pioneering Innovation; Self-Critique; Long-Termism” we remain committed to our
entrepreneurial spirit and brand-building mission. Throughout our development we adhere to thebrand ethics of “Integrity in Operation Respect for Consumers Fair Competition SocialResponsibility (ESG) Intellectual Property Rights Continuous Improvement” integrating
compliant operations and social responsibility into our corporate development earning
widespread recognition and fueling brand building and long-term growth.
3. Brand Advancement Towards Centennial Visionary Winner
With a Centennial Visionary Winner Winner Group is committed to brand advancement. In the
medical field Winner Medical has established a sound reputation for professionalism innovation
and high quality over 30 years becoming an industry benchmark. In the consumer goods fieldPurcotton centering on cotton and leveraging its core competitive edges of “Medical Heritage;Cotton-Centric Philosophy; Quality DNA” has cultivated a brand image of “ComfortCommitment; Health Assurance; Eco-Consciousness” creating differentiated brand advantages.Through continuous brand building and marketing both business segments enhance brand
awareness and reputation establishing themselves as preferred choices for consumers. This
strong brand recognition supports product sales and market expansion with the synergy between
professional medical products and quality consumer goods forming a unique brand moat.
4. Product Leadership: Innovation-Driven Quality Development
Winner Group upholds a “Product Leadership” strategy driving development through innovation
and consistently delivering high-quality products. In the medical field we focus on independent
R&D of core basic materials and continuous iteration and upgrading of key product categories
ensuring market-leading product performance and quality. In the consumer goods field driven
by the vision of “Pure Cotton Changes the World” we select premium cotton from around the
globe as raw materials and apply rigorous standards born of our medical heritage to create
differentiated consumer products. We leverage market insights to rapidly launch new products
that meet consumer needs and lead market trends. Furthermore the Company promotes the
transformation of research outcome through industry-academia collaboration and actively
explores cutting-edge fields like life sciences. Through continuous R&D investment the
Company leads and participates in the development of numerous national standards and
maintains a leading position in patent and product registration numbers solidifying its industry
leadership through “Product Leadership”.
5. Operational Excellence: Advanced Technologies for Lean ManagementWinner Group continuously promotes the implementation of its Group-wide “OperationalExcellence” strategy. In smart manufacturing we actively advance the automation and intelligent
upgrading of our production processes achieving automated equipment operation throughout the
entire process from raw materials to finished products. We also actively leverage AI tools to
empower operations and continue to strengthen our efforts in expansion of deep coverage across
all business segments solidification of data foundation process streamlining and efficiency leap-
up and deep AI empowerment in key scenarios to establish a robust bedrock for value upgrades
across every business sector. In terms of refined channel operations we prioritize both online
and offline channels. Offline stores enhance the consumer experience through optimized layouts
and improved services while online channels leverage precise management and targeted
marketing to improve conversion and repurchase rates. Simultaneously we utilize membership
systems and community operations to deepen customer relationships achieving synergistic
development and efficient operation across all channels.Semi-Annual Report
6. Organization and Talent: Building an International Professional Team
Winner Group is dedicated to establishing a systematic organization and talent development
program encompassing talent acquisition training assessment and incentives. The Company
actively promotes the Four-High Talent Philosophy – "High Personal Quality; High Academic
Qualifications; High Performance; High Compensation" – with the goal of developing Winner
career partners and continuously providing a nurturing environment for talent growth. In terms
of organization the Company is building professional teams that support integrated business
operations focusing on "Organizational Capability 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.III. Analysis of Main Business
1. Overview
Winner Group operates as a holistic health enterprise synergistically converging medical
innovation and consumer wellness ecosystems. Its unique “medical + consumer” dual-engine
business model generates mutually reinforcing synergies. The Company’s emphasis on product
quality and innovative R&D forms the foundation of the Group’s development. As a proprietary
technology the “pure cotton spunlace non-woven fabric” process has seen its application cross
over from the medical sector to consumer goods pioneering new categories such as cotton
tissues and cotton inner layer masks. In procurement with cotton as the core raw material the
combined demand from our two major business segments—exceeding that of any single sector—
facilitates centralized purchasing which enhances bargaining power and stabilizes cost
fluctuations. Regarding the supply chain our integrated industry chain system enables shared
production warehousing and logistics effectively reducing manufacturing and administrative
costs. In brands the medical heritage in quality control provides a solid foundation of quality for
Purcotton’s safety and trust enhancing Purcotton’s professional credibility brand reputation and
customer loyalty. The synergistic and balanced development of these two business segments
creates complementary growth engines. Characterized by essential demand and high-frequency
usage our products effectively balance short-term industry fluctuations with long-term
performance growth strengthens the Company’s resilience against economic cycles and
establishes a solid foundation for high-quality development.(I) Financial performance analysis
In the first half of 2026 the external environment remained complex and challenging. Factors
such as RMB appreciation rising raw material prices and geopolitical conflicts had a certain
impact on the Company's production and operations. Winner Group adhered to the strategic
guidelines of "Product Leadership Operational Excellence Brand Advancement and Digital
Empowerment" rising to challenges proactively seeking breakthroughs and navigating pressure
to achieve growth in both revenue and profit demonstrating the resilience of the Company's
business. During the Reporting Period the Company achieved operating revenue of RMB5.49
billion representing a year-on-year increase of 3.6%. Net profit attributable to shareholders of
the listed company was RMB510 million while net profit attributable to shareholders of the
listed company after deducting non-recurring gains and losses was RMB460 million
representing year-on-year increases of 4.4% and 0.4% respectively.* Medical consumables business: full-scale breakthroughs in high-end positioning brand
building and global expansion
Committed to developing into a brand that provides a "one-stop solution for medical
consumables" Winner Medical's products encompass advanced wound dressings operating
room consumables healthcare and personal care products infection prevention products and
traditional wound care and bandaging products. The Company prioritizes R&D investment and
holds a significant advantage in the number of medical product registration certificates
establishing a competitive barrier in the stable medical sector. In the first half of 2026 the
medical segment generated operating revenue of RMB2.59 billion accounting for 48% of the
Company's main business revenue and representing a year-on-year increase of 2.9%. Gross
margin was 38.7% up 1.3 percentage points from the same period last year. Despite external
challenges the medical segment maintained steady growth.By product category operating room consumables including surgical gloves surgical packs
surgical gowns for angiography cesarean section urology and other procedures continued to
expand their coverage of domestic and international end markets. Advanced wound dressings
continued to strengthen their technological capabilities expand their customer base and enhance
brand awareness. Against the high base of overseas exports in the previous year operating room
consumables and advanced wound dressings generated operating revenue of RMB800 million
and RMB490 million respectively during the Reporting Period representing year-on-year
increases of 7.7% and 2.8% respectively. As of the end of the Reporting Period the medical
consumables segment held 1115 patents and 901 medical product registration certificates
(including 32 Class III medical product registration certificates and 505 overseas product
registration certificates).By channel in the first half of 2026 the Company continued to pursue its three-pronged
approach of "overseas business + domestic professional medical market + daily consumer
medical market" continuously developing and expanding its marketing channels through various
initiatives. During the Reporting Period overseas markets were significantly affected by the high
export base of the previous year. In the first half of the year the Company's overseas sales
channels generated operating revenue of RMB1.46 billion representing a year-on-year increase
of 2.5% and accounting for 57% of the medical segment's revenue. Domestic hospital channels
expanded steadily generating operating revenue of RMB440 million in the first half of the year
representing a year-on-year increase of 6.0% and accounting for 17%. The B2C business which
encompasses domestic pharmacies as well as domestic and international e-commerce channels
recorded cumulative revenue of RMB450 million accounting for 17% of total revenue. Notably
cross-border e-commerce platforms recorded cumulative year-on-year growth of nearly double
digits delivering strong growth. As of the end of the Reporting Period the total number of
followers across domestic e-commerce platforms reached 18.04 million.* Consumer products business: Double-digit growth in cotton tissues and online channels in Q2
In the consumer products business Purcotton has built a loyal customer base seeking
"Reassurance Wellbeing Sustainability" supported by its three core competitive advantages:
"Medical Heritage; Cotton-Centric Philosophy; Quality DNA." During the Reporting Period
Purcotton implemented a popular-product strategy refined channel operations remained focused
on delivering value to consumers and continued to strengthen its brand. In the first half of 2026
Purcotton achieved operating revenue of RMB2.84 billion accounting for 52% of the main
business revenue and representing a year-on-year increase of 3.6%. Gross margin and operating
margin continued to improve steadily.By product category Purcotton's core dry and wet cotton tissues its No. 1 single product
category maintained solid sales growth generating cumulative operating revenue of RMB900
Semi-Annual Report
million during the Reporting Period representing a year-on-year increase of 10.4% (19.3% in the
second quarter). Multiple cotton tissue products consistently ranked among the top sellers on
major online platforms. In the sanitary napkin category "Nice Princess" leveraging its "Five
Supers" pure cotton sensory technology (super absorption super breathability super softness
super eco-friendliness and super convenience) and Winner Medical's safe and hygienic
production environment achieved cumulative operating revenue of RMB480 million during the
Reporting Period. Growth remained under some pressure due to the high base from the previous
year (the year-on-year growth rate in the first half of 2025 was 68%) but the year-on-year
decline narrowed quarter by quarter. In adult apparel technologies from the "Cotton Tech"
platform (Cotton Soft Cotton Breathable Cotton Warm Cotton Cool Cotton Anti-UV Cotton
Anti-Bacterial Pure Cotton Core Technology etc.) have been fully applied across products. The
Company strategically focused on close-to-skin categories such as underwear and loungewear
generating cumulative operating revenue of RMB580 million in the first half of the year
representing a year-on-year increase of 10.8%. Baby and child apparel and products generated
cumulative revenue of RMB520 million during the Reporting Period representing a year-on-
year increase of 12.1% driven by improvements in product fabrics and design aesthetics.Purcotton continued to enrich its product portfolio and enhance product competitiveness through
R&D and innovation. As of the end of the Reporting Period Purcotton had been granted a total
of 600 patents.By channel in the first half of 2026 Purcotton continued to develop its online channels focusing
on building a competitive new-product and popular-product matrix for its strategic products.During the Reporting Period online channels generated operating revenue of RMB1.78 billion
representing a year-on-year increase of 4.1% and accounting for 63% of consumer products
business revenue. Notably online sales growth accelerated to double digits in the second quarter.Social commerce platforms continued to deliver strong growth; for example Douyin recorded
nearly 20% year-on-year growth in the first half of the year accounting for 15% of online sales.As important touchpoints for brand promotion product experience and customer service
Purcotton's physical stores continued to develop steadily. As of the end of the first half of 2026
the Company had 508 stores including 387 directly operated stores and 121 franchised stores.During the first half of the year 11 new stores were opened including 6 directly operated stores
and 5 franchised stores. During the Reporting Period physical stores generated operating
revenue of RMB720 million remaining flat year-on-year and accounting for 25%. The
supermarket channel also continued to grow generating revenue of RMB280 million during the
Reporting Period representing a year-on-year increase of 12.2% and accounting for 10%. As of
the end of the Reporting Period Purcotton's total omnichannel membership reached nearly 75
million an increase of 7.1% from the end of last year reflecting continued growth in brand
penetration.* Analysis of the Company's profitability and assets
In the first half of 2026 the medical business faced significant cost-control challenges from
rising raw material prices and sea freight costs. Through comprehensive measures including
new product iteration cost reduction and efficiency improvements the Company increased the
gross margin of its medical main business by 1.3 percentage points to 38.7%. However the
appreciation of the RMB adversely affected the export business resulting in a 1.5-percentage-
point decline in operating margin to 7.1%. For the consumer products business the Company
focused on strategic products strengthened discount management and refined its operations to
mitigate the impact of rising raw material prices. As a result the gross margin and operating
margin of the main business both increased by 0.2 percentage points reaching 58.9% and 14.2%
respectively. The Company's overall net profit attributable to the parent company was RMB510
million representing a year-on-year increase of 4.4%. Due to RMB appreciation exchange
losses in the first half of the year increased by approximately RMB80 million compared with the
same period last year.In terms of assets as of the end of the first half of 2026 the Company's total assets reached
RMB18.97 billion an increase of 3.1% from the beginning of the year. The asset-liability ratio
was 34.2% remaining at a relatively low level. Cash and wealth management products totaled
RMB6.66 billion accounting for 35.1% of total assets. Overall asset quality remained strong.In terms of shareholder returns the Company continued to implement its "Dual Improvement of
Quality and Return" action plan rewarding shareholders for their support through consistent
cash dividends and share repurchases. The profit distribution plan for the first half of 2026 is as
follows: a cash dividend of RMB5.0 per 10 shares (tax inclusive) with a proposed total cash
dividend of RMB290 million. During the first half of the year the Company paid RMB130
million in cash for share repurchases. Together these two items accounted for approximately
81.2% of the net profit attributable to shareholders of the listed company for the first half of
2026. On 30 April 2026 the Company simultaneously disclosed the "Future Three-Year
Shareholder Return Plan (2026-2028)" and the "Announcement on Repurchase of Company
Shares for Cancellation." The Company clarified that provided that its sustainable operations
and long-term development are ensured if the Company remains profitable and there are no
material adverse changes in the external operating environment or its operating conditions the
annual cash dividend payout ratio will in principle be no less than 55% over the next three years.The Company also announced a share repurchase plan of RMB200 million to RMB400 million
with all repurchased shares to be cancelled to increase earnings per share. As of 21 August 2026
the Company had cumulatively repurchased approximately 8.0468 million shares with a total
transaction amount of approximately RMB230 million.* Outlook for future development
Throughout Winner Group's development the Company has successfully navigated five
economic cycles. Through this journey we have remained true to our original aspirations
continuously building on our strengths preserving our heritage and carrying our values forward.The Company has consistently adhered to its core business principles of "Quality over the Profit
Brand over the Speed and Social Value over the Corporate Value." Guided by the development
strategy of "Product Leadership Operational Excellence Brand Advancement and Digital
Empowerment" the Company has continued to pursue dual-track growth across the medical and
consumer products businesses drive coordinated expansion across domestic and global markets
and promote integrated growth across online and offline channels. Upholding the principles of
altruism and long-termism the Company remains committed to delivering safe high-quality
cost-effective products and exceptional experiences to consumers worldwide.(II) Operational management
(1) Brand building
In the first half of 2026 Winner Group remained firmly focused on the core strategy of "Product
Leadership Operational Excellence Brand Advancement and Digital Empowerment" elevating
the brand development of Winner Medical and Purcotton to new levels.High-profile presence at CISCE continuously amplifying brand visibility. In June Winner
Medical and Purcotton participated in the 4th China International Supply Chain Expo (CISCE).As two leading companies in the Healthy Life Chain Pavilion they showcased a complete
ecosystem spanning from cotton fields to operating rooms under the theme "One Cotton Flower
Changes the World" attracting extensive coverage from authoritative media outlets including
CCTV CCTV.com Xinhuanet and People's Daily Online.Semi-Annual Report
* Winner Medical brand building
Led by its green operating room strategy accelerating the development of a professional brand
system. Centered on its comprehensive "green operating room" solution the Company is
advancing toward its strategic goal of becoming "China's No. 1 green operating room brand." In
the first half of the year the Company actively participated in leading domestic and international
academic conferences independently organized in-hospital symposiums and departmental
meetings and engaged deeply in the optimization of clinical pathways through initiatives such as
health economics research. These efforts have helped elevate its products from being merely
"market accessible" to becoming the "preferred clinical choice" further strengthening Winner
Medical's position as a trusted brand among healthcare professionals worldwide.Brand warmth and professional expertise advancing in parallel. By extending medical-grade
quality to mass-market sports protection scenarios the Company sponsored the One Foundation
"Walk for Love" public welfare activity and the "Blooming Her" Kunpeng Trail hiking activity.Through initiatives such as the "Scientific Wound Care Trilogy" the Company fulfilled its social
responsibilities through professional expertise while fostering a deeper emotional connection
between the brand and its target audiences.Deepening global expansion. The Vietnam production investment project officially commenced
construction marking a shift from "product globalization" to "capacity globalization" and setting
a new benchmark for Chinese medical brands with a global outlook.Winner Medical continues to safeguard health through medical technology while driving the
continued enhancement of brand value across the healthcare industry.* Purcotton brand building
Guided by "Brand Advancement" Purcotton continues to deepen its emotional connection with
consumers through authentic actions and meaningful communication. By conveying the values
of reassurance wellbeing and sustainability the brand is building an image that is both strong
and warm. In January Purcotton's New Year Happiness Red Pavilion was launched in Chengdu
Chongqing Wuhan Xi'an Kunming and Beijing inviting consumers to experience the festive
spirit through a variety of interactive activities. On March 2 Nice Princess Purcotton's feminine
care brand officially announced Lu Yuxiao as its "Beautiful Life Ambassador." On March 18
Purcotton officially announced Zhang Linghe as the Global Brand Ambassador for home and
leisure apparel. At the same time the "More Comfortable Life with Purcotton at Home" brand-
themed exhibition was launched in eight cities nationwide. At the end of March Purcotton made
its debut at China International Fashion Week showcasing the comfort and sustainable fashion
of cotton through a themed "Quality Craftsmanship" show. In April Purcotton and brand
ambassador Guo Jingjing jointly launched the themed short film "A Mother's Sense of Security"
and the "Newborn Sense of Security Protection Plan." Extending beyond products to knowledge
support and caring services in urban public spaces the initiative brought the brand proposition
"For the First Piece of Newborn Choose Purcotton with Peace of Mind" to life and further
embedded it in consumers' minds. In May Nice Princess's "Beauty for Her" campaign returned
partnering with the China Hearing Medical Development Foundation to launch the "Menstrual
Care Action for Hearing-Impaired Women." Through health education and care packages the
campaign delivered warmth and support to women with hearing impairments. On May 29
Purcotton's city flagship store at Xiamen MIXC opened with "More Comfortable Life with
Purcotton at Home" as its design concept. Featuring six major lifestyle scenarios the store offers
an immersive experience of a comfortable healthy and eco-friendly pure cotton lifestyle.
(2) Product R&D
* Winner Medical product R&D
In the first half of 2026 Winner Medical continued to advance innovation in pure cotton
spunlace non-woven materials advanced wound care technologies and cutting-edge
biomaterials with a focus on upgrading core material formulations and continuously advancing
product and technology development. In the field of operating room consumables the Company
continued to advance its strategy of "replacing synthetic fibers with pure cotton" while further
enhancing the performance of pure cotton spunlace non-woven fabrics. By optimizing fiber
interweaving processes and finishing technologies the Company significantly improved the
bacterial barrier properties blood penetration resistance and wearing comfort of high-volume
consumables such as surgical gowns further advancing its end-to-end "green operating room"
solution. In the advanced wound dressings sector the Company continued to strengthen its
technological capabilities and domestic substitution strategy focusing on the independent R&D
and production of core raw materials for advanced wound dressings. Class III hydrocolloid
dressings have entered the registration stage while new-generation functional scar dressings and
medical hydrogel dressings have successfully obtained medical device registration certificates. In
the bioactive dressings business the Company continued to advance the development and
upgrading of collagen substrates while expanding into new antibacterial dressing categories. The
Company's fully independently developed collagen raw materials have been applied to medical-
aesthetic facial mask products achieving large-scale production and commercial launch. This
further establishes a pathway for the commercialization of bioactive raw materials in
downstream medical-aesthetic and medical products while strengthening the Company's
technological advantages and commercialization capabilities across multiple product lines
including medical dressings medical-aesthetic dressings and functional protective dressings. In
the field of respiratory protection the Company made significant progress in product innovation.The activated carbon cotton inner-layer mask was successfully launched. By combining
activated carbon with pure cotton substrates the mask effectively adsorbs harmful gases such as
formaldehyde and oil fumes expanding the application of cotton inner-layer masks into new
scenarios including industrial protection and home air purification. Significant progress was also
made in the R&D of double-sided cotton masks. Featuring a soft double-layer cotton structure
the product provides a more skin-friendly feel and improved breathability while further
enhancing its biodegradability and environmental performance. The Company also achieved key
technological breakthroughs in developing medical surgical protective masks with cotton inner
layers specifically for operating rooms. The products demonstrated significant clinical trial
results and excellent performance further strengthening the Company's core competitiveness in
medical surgical masks.* Purcotton product R&D
In the first half of 2026 Purcotton implemented its strategy of "Product Leadership Material
First." For non-woven products the Company continued to advance technologies such as self-
softening and sterilization while expanding their application scenarios. For woven products
leveraging its nine Cotton Tech technologies the Company focused on core categories and
promoted collaborative innovation and commercialization across cotton-based materials
weaving and functional technologies and end products comprehensively enhancing product
experiences across multiple scenarios.The Company's core R&D achievements during the period were significant. In spinning
technology ultra-low-twist high-strength yarns entered mass production achieving a 10%
reduction in twist while maintaining stable strength. The fabric's anti-pilling performance
reached Grade 4 enhancing the overall quality of intimate wear baby and children's products
and home bedding. Wind Soft Cotton 5.0 was also upgraded with a 45% increase in fluffiness
and significantly improved resilience and resistance to deformation making it suitable for close-
to-skin applications for infants and people with sensitive skin.Semi-Annual Report
In the fabric field the Company independently developed a high-elasticity technology for pure
cotton warp-knitted pants optimizing fabric stability and stretchability to address deformation
and restricted movement after prolonged wear. It also developed an innovative pure cotton
softshell composite fabric that combines warmth abrasion resistance deformation resistance
and fluorine-free water repellency while retaining the breathability and skin-friendly properties
of pure cotton making it suitable for commuting and light outdoor activities. At the same time
the Company completed process upgrades for 200S high-count yarns snow-touch fabrics and
self-softening technologies significantly improving the texture and comfort of baby and
children's products intimate wear and home textiles.In functional materials the Company implemented pure cotton odor-control wash-resistant and
quick-drying finishing technologies to effectively address issues such as odor after prolonged
wear and the slow drying of cotton products. The Company also combined fluorine-free water
repellency with UV protection delivering both environmental benefits and enhanced
functionality and significantly improving product adaptability for commuting and outdoor
scenarios.Non-woven consumer products continued to be optimized and upgraded. Baby wipes adopted a
minimalist preservative formula based on natural plant extracts with fewer ingredients and mild
properties making them suitable for baby and children's care as well as sensitive skin. Pure
cotton spunlace cotton tissues leveraged the excellent properties of pure cotton to meet a wide
range of everyday needs. Disposable travel products were upgraded in terms of patterns and
substrates significantly improving comfort fit and portability for travel scenarios.The Company further deepened industry-academia-research-medical collaboration conducting
specialized research on skin health fabric comfort ergonomics and other areas in partnership
with multiple institutions. By establishing a user experience-centered validation system the
Company is applying scientific research findings to product development and iteration with
greater precision.Going forward the Company will continue to deepen its core cotton-based technologies and
drive innovation across materials processes functions and application scenarios. It will develop
high-quality safe and environmentally friendly pure cotton products while strengthening its
technological advantages and differentiated competitiveness in the cotton lifestyle sector.
(3) Digital and intelligent transformation
In the first half of 2026 the Company continued to deepen its digital transformation leveraging
artificial intelligence as a key driver to improve operational efficiency optimize business
processes and strengthen decision-making capabilities. This accelerated the evolution of its
digital capabilities from process digitization and data assetization toward intelligent business
operations. The Company continued to enhance its AI application framework around a unified
AI entry point intelligent execution capabilities and an enterprise-level technology foundation
steadily expanding AI applications from employee productivity scenarios to professional
business processes and business decision-making. Based on business needs the Company
introduced and adapted mainstream large language model capabilities strengthened the
integration of knowledge data processes and AI and simultaneously enhanced data security
access controls compliance reviews and human review mechanisms. The medical business
segment continued to advance the digitalization of marketing and customer operations by
upgrading the end-to-end customer relationship management system for domestic retail and
strengthening customer management sales process collaboration and marketing activity support.The development of the overseas core business management system made phased progress with
the overall plan and direction for global templates completed. The Company continued to
promote the standardization of business processes data standards and management rules laying
a solid foundation for global business collaboration and more refined operations. The Group's
financial shared services platform progressed in an orderly manner with continuous
improvements in shared services organizational collaboration approval efficiency and the
employee experience. The Purcotton business accelerated the integration of online and offline
operations with AI applications continuously strengthening its digital foundation of "unified
platform data-driven and intelligent empowerment" across key areas including products users
stores marketing and fulfillment. In product and store operations the Company promoted
applications such as intelligent picking intelligent store inspections and assisted display
recognition improving store operating standards and execution efficiency. In user operations the
Company applied capabilities such as intelligent customer outreach consumer feedback analysis
and intelligent marketing to translate user insights into product and service improvements and
support the transition of member operations from scale-driven growth to more refined tiered
management. In business management the Company strengthened data analysis anomaly
detection and operational decision support improving management efficiency across multiple
levels of the organization. The manufacturing and supply chain segment continued to advance
the development of smart manufacturing and smart logistics using digital and intelligent
technologies to improve operational efficiency across warehousing networks facilities and
equipment workforce allocation inventory management and operational processes. Using the
Jingmen base as a pilot the Company promoted data connectivity and system integration across
products production warehousing and logistics exploring a digital closed loop spanning
production planning process execution and warehouse fulfillment while gradually building
replicable capabilities in smart manufacturing and smart supply chain management. Overall in
the first half of 2026 the Company continued to strengthen its global business management
platform data governance data applications and AI capabilities embedding artificial
intelligence more deeply into actual business processes. Guided by the goals of improving
efficiency optimizing costs enhancing quality accelerating response times and reducing risks
these efforts supported the implementation of the Company's strategy of "Product Leadership
Operational Excellence Brand Advancement and Digital Empowerment."
2. YoY Changes in Key Financial Data
Current Reporting Same period last Year-on-year Period year increase/decrease Reason for change
Revenue 5486211258.52 5296211956.92 3.59%
Operating costs 2798167916.13 2736394780.72 2.26%
Selling
expenses 1319852862.34 1254903652.81 5.18%
Administrative
expenses 429235127.33 436173126.72 -1.59%
Finance
expenses 66398193.28 -11332380.95 685.92%
Primarily due to an increase in
exchange losses during the period
Income tax
expenses 117100459.42 127441441.90 -8.11%
R&D expenses 192440074.86 194377566.90 -1.00%
Net cash flows
from operating 313432891.06 339925774.07 -7.79%
activities
Net cash flow Primarily due to a higher purchase
from investing -300742384.15 524259605.55 -157.37% of wealth management products
activities during the period
Net cash flow Primarily due to lower cash
from financing 243072314.02 -741438610.09 132.78% payments for the repayment of
activities debts during the period
Semi-Annual Report
Net increase in Primarily due to higher net cash
cash and cash 210128119.36 129989002.56 61.65% flows from financing activities
equivalents 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 in the profit composition or profit source of the Company
during the Reporting Period.Products or services accounting for more than 10%
√Applicable ?N/A
Unit: RMB
Increase
or Year-on-
Year-on- decrease
Gross year in costs
year
over the increase/d Revenue Operating costs profit increase/d
margin ecrease of same
ecrease of
period of gross revenue the profit
previous margin
year
By products or
services
Medical consumables 2588000112.47 1585851406.86 38.72% 2.89% 0.70% 1.34%
Consumer goods 2844222859.14 1170012868.47 58.86% 3.60% 3.02% 0.23%
By products
Medical consumables -
Traditional wound care
and bandaging 555166300.32 367678208.74 33.77% -2.29% -5.16% 2.01%
products
Medical consumables
– operating room 800115315.89 538872560.47 32.65% 7.70% 3.75% 2.56%
consumables
Consumer goods – dry
and wet cotton tissues 897611109.37 443808455.80 50.56% 10.42% 9.74% 0.30%
Consumer goods –
adult apparel 577238711.57 180864466.20 68.67% 10.83% 7.09% 1.09%
By regions
Domestic 3841148120.05 1801648431.79 53.10% 3.15% 3.15% 0.00%
Abroad 1591074851.56 954215843.54 40.03% 3.55% -1.00% 2.75%The Company is subject to the disclosure requirements for “Textile and Apparel RelatedBusiness” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 –
Industry Information Disclosure.Unit: RMB
Increase or Year-on-
Year-on- decrease in year
Gross year costs over increase/d
Revenue Operating costs profit increase/d the same ecrease of
margin ecrease of period of gross
revenue the previous profit
year margin
By industries
Consumer goods 2844222859.14 1170012868.47 58.86% 3.60% 3.02% 0.23%
By products
Consumer goods – dry
and wet cotton tissues 897611109.37 443808455.80 50.56% 10.42% 9.74% 0.30%
Consumer goods –
sanitary napkins 477614012.43 153587287.44 67.84% -10.34% -9.04% -0.46%
Consumer goods –
other non-woven 178556012.37 108149940.99 39.43% -10.51% -9.30% -0.81%
products
Consumer goods –
baby and child apparel 521066535.17 202593871.46 61.12% 12.08% 11.19% 0.31%
and products
Consumer goods –
adult apparel 577238711.57 180864466.20 68.67% 10.83% 7.09% 1.09%
Consumer goods –
other woven products 192136478.23 81008846.58 57.84% -10.41% -12.07% 0.79%
By regions
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/A
Does the Company have physical store sales terminals
√Yes ?No
Physical store distribution
Total Number of Number of new stores closed at
Store type Number of area stores (square stores during the the end of the Reason for closures
Brands
meters) Reporting Period Reporting
involved
Period
Directly Store closure due to
operated 387 113936 6 6 contract expiration and Purcotton strategic planning
Store closure due to
Franchised 121 26476 5 2 contract expiration and Purcotton
strategic planning
Note: During the Reporting Period certain directly operated stores were converted to franchised
Semi-Annual Report
stores or vice versa. Such conversions are not counted as new store openings or closures and the
opening balances have been adjusted based on the number of stores.Total area of directly-operated stores and store efficiency
Year-on-year
Number of Total area
Operating revenue
Area range (square from January to Same period
change in
stores June 2026 last year average Reasons meters) (RMB0'000) store efficiency
Less than 300
square meters 227 47803.43 31237.08 31173.21 0.20%
square meters 108 39178.20 21312.12 21714.59 -1.85%
square meters 20 12565.89 5110.11 5704.72 -10.42%
More than
800 square 5 4651.82 1311.16 1417.13 -7.48%
meters
Total 360 104199.34 58970.47 60009.65 -1.73%
Note: The above represents same-store year-on-year comparison for Purcotton stores that have
been open for more than 12 months as of 30 June 2026.The top five stores in terms of operating revenue
Serial Store name Opening date Operating revenue Store efficiency per square number (RMB) meter
1 Ranking first 25 October 2017 5896282.85 14583.93
2 Ranking second 06 August 2012 5102375.20 19181.86
3 Ranking third 11 November 2017 5092873.45 4592.31
4 Ranking fourth 18 January 2018 4793946.89 11496.28
5 Ranking fifth 15 May 2010 4572632.04 7029.41
Total -- -- 25458110.43 8942.71
New stores of listed companies
√Yes ?No
Area in
Store Store Opening contract Investment amount Product Business Business
Property Number
name address time (Square (RMB0'000) categories format model
ownership of
meter) status stores
East
Purcotton China
directly Zhejiang- 2026 1427.00 668.83 Consumer
Directly
Retail operated Leased by operated Shanghai- goods store Purcotton
store Fujian
Region
Purcotton East
directly China Directly
operated Jiangsu- 2026 211.00 155.43
Consumer
goods Retail operated
Leased by 1
store Anhui store
Purcotton
Region
Purcotton Directly
directly North China 2026 360.00 182.17
Consumer
goods Retail operated
Leased by
Purcotton 1 operated store
store
Purcotton
directly Northwest Directly
operated China 2026 527.00 194.34
Consumer
goods Retail operated
Leased by
Purcotton 1
store store
Purcotton Franchised
franchised North China 2026 414.00 61.15
Consumer Retail Franchised by 2
stores goods stores Purcotton
Purcotton Franchised
franchised South China 2026 208.00 42.01
Consumer
goods Retail
Franchised
store stores
by 1
Purcotton
Purcotton
franchised Northwest 2026 294.10 60.60 Consumer Retail Franchised
Franchised
store China goods stores
by 2
Purcotton
Total 3441.10 1364.53 11
Does the Company disclose information about its top five franchised stores
?Yes √No
IV. Other Information Required by the Disclosure Guidelines for Textile and Apparel-
Related Sectors
1. Production capacity
The Company’s own production capacity
Current Reporting Period Same period last year
Capacityutilization rate year-on-year change exceeding 10%
√Yes ?No
January-June 2026 January-June 2025 Proportion
of change
Business Product in Unit Production Capacity Production Capacity production
Change reason
category Categories
capacity Output utilization
description
rate capacity
Output utilization capacity
rate utilization
rate
Due to a surge
in order
volume during
the same
period last
year
temporary
measures were
taken to
increase
production
Consumer Sanitary '0000 capacity.goods napkins pieces 64876 42863 66.07% 72986 72695 99.60% -33.53% During the
current period
production
was scheduled
under normal
operating
conditions
resulting in a
corresponding
reduction in
effective
production
Semi-Annual Report
time.Is there overseas capacity
?Yes √No
2. Sales Model and Channels
Sales channels and actual operation of products
The Company's textile and apparel-related business falls within the consumer goods industry
with online sales and physical stores serving as its main sales channels.Unit: RMB
Change in
operating Change in Change in operating costs gross margin
Sales Gross revenue
channels Revenue Operating costs profit compared to
compared to compared to
margin the same the same the same
period last year period last year period last year
(%) (%) (%)
Online
sales 1778288072.08 793740079.12 55.36% 4.14 4.41 -0.12
Physical
stores 724933337.03 217868001.79 69.95% 0.10 -7.12 2.33
Reasons for change
3. Selling Expenses and Composition
Unit: RMB
Item Amount incurred in Amount incurred in Year-on-year current period previous period increase/decrease Reason for change
Employee
compensation 371564957.44 351756153.04 5.63%
Without significant
changes
Travel expenses 17110775.89 15038995.11 13.78% Without significant changes
Office
communication 10828534.25 8503507.92 27.34% Without significant
costs changes
Sales commissions
and expenses from 138761589.51 144526632.13 -3.99% Without significant the e-commerce changes
platform
Depreciation and 112477625.82 121179518.36 -7.18% Without significant amortization changes
Advertising and
promotion 558441510.83 501245493.81 11.41% Without significant
expenses changes
Lease and
property
management 78009852.01 68438212.02 13.99%
Without significant
changes
expenses
Others 32658016.59 44215140.42 -26.14% Without significant changes
Total 1319852862.34 1254903652.81 5.18% Without significant
changes
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 Is it a related
Total sales
number cooperation party amount Franchisee’s level (RMB)
1 Ranking first 09 November 2020 No 9326343.15 the first level
2 Ranking second 28 December 2022 No 6714354.79 the first level
3 Ranking third 16 June 2023 No 5602804.88 the first level
4 Ranking fourth 24 December 2020 No 5357151.93 the first level
5 Ranking fifth 01 June 2021 No 4751484.47 the first level
Total 31752139.22
Top five distributors
Serial Date of start for Total sales amount
number Franchisee name cooperation Is it a related party (RMB)
5. Online Sales
Online sales revenue accounted for more than 30% of total sales revenue
√Yes ?No
The Company’s primary operation model involvessetting up onlinestores on third-party e-
commerce platformssuch 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 recognised 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 18042219
Average number of monthly active users 1455286
Was there cooperation with third-party sales platforms
√Yes ?No
Unit: RMB
Platform name Transaction amount during the Reporting Period Return rate
Taobao/Tmall ecosystem
(consumer goods) 823462832.62 3.67%
Opening or closing of online sales channels by the Company
?Applicable √N/A
Explain the impact on the Company's current and future development
Semi-Annual Report
6. Outsourced Operation Model
Does it involve an outsourced operation model
?Yes √No
7. Inventory
Inventory
Inventory
Main products Inventory amount Inventory Year-onyear change in turnover days (RMB) aging inventory balance (RMB)
Reasons
Raw materials and
materials consigned for 457380483 46957399
processing
Work in process 291879123 26947478
Goods on hand 1311163902 18985749
Goods in transit 52976553 16992984
Low-value consumables 13325463 628858
Total 141 2126725524 110512469
Provision for inventory decline
Unit: RMB
Increase in current period Decrease in current period
Item Openning balance Reversal or Closing balance Provision Others write-back Others
Raw
materials 16092327.97 2089373.89 4378876.61 13802825.25
Work in
process 18180794.50 4291985.80 14383190.38 8089589.92
Goods on
hand 93362105.64 44059156.39 36094340.63 101326921.40
Low-value
consumables 931993.41 17962.22 914031.19
Total 128567221.52 50440516.08 54874369.84 124133367.76
Inventory information of end channels such as franchises or distributors
Purcotton has 121 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 2026 the inventory balance was
RMB45.58 mil lion averaging RMB380000 per store.
8. Brand Building
Does the Company engage in the production and sale of branded garments apparel and home
textile products
√Yes ?No
Proprietary brand
Brand Trademark Main product Target Characteristics customer Price range of Main sales name name type group main products area
City tier
Made of 100% high-
quality natural
cotton without
fluorescent RMB5-30/pack Second-tier
Purcotton Purcotton Cotton tissues whitening agent; All age groups (100 Nationwide thirdtier and
mild and non- pieces) above cities
irritating; meeting nationwide
the daily needs of
consumers
100% cotton surface Age- Second-tier
Purcotton Nice Sanitary napkins layer (surface layer appropriate thirdtier and Princess spacer sanitary female RMB1.5-4.99/pad Nationwide above cities
wing surface layer) population nationwide
100% cotton surface Second-tier
layer unique in the thirdtier and
market care from above cities
natural cotton; with nationwide
Purcotton Nice Baby Cotton diapers ultra-thin 2mm Caregivers of RMB2.45-
super-absorbent core infants 5.45/piece
Nationwide
that holds up to 28
times its weight in
liquid
100% cotton Second-tier
Purcotton Purcotton Wet wipes material; soft and thirdtier and non-slippery; gentle All age groups RMB20-40/pack Nationwide above cities
and non-irritating nationwide
100% cotton Second-tier
material without Expecting thirdtier and
Baby and Child fluorescent nor mothers Purcotton Purcotton formaldehyde; the newborns RMB100-
above cities
products/apparel 500/piece Nationwide nationwide unique gauze fabric infants and
to provide more toddlers
comfortable care
Outerwear: Second-tier
RMB150- thirdtier and
800/piece; above cities
100% cotton Adult apparel: sleepwear: nationwide
material; high- age- RMB200-
quality cotton appropriate 800/piece;
Adult without fluorescent adult men and thermal
Purcotton Purcotton apparel/intimate nor formaldehyde; women; underwear: Nationwide
wear soft to the touch; the Intimate RMB200-
unique gauze fabrics clothing: all 600/piece;
to provide more age groups of underpants:
comfortable care customers RMB58-
108/piece (pack);
socks: RMB20-
40/pair
Children's Second-tier
bedding: thirdtier and
100% cotton RMB268- above cities
material; high- 1698/set; nationwide
quality cotton Expecting mothers Toddler bedding:
Bedding bath without fluorescent newborns RMB198-Purcotton Purcotton products nor formaldehyde; 1098/set; Adult Nationwide soft to the touch; the babies infants
unique gauze fabrics toddlers and
bedding:
adults RMB268-to provide more 3198/set; Bath
comfortable care products:
RMB38-
398/piece
Semi-Annual Report
Partner brands
Price Brand and
Brand Trademark Main Target product Characteristics customer range of
Main
sales City trademark Partner Cooperation Cooperation name name type group main area tier rights name mode period products ownership
Licensed brand
Price
Brand Trademark Main Target range of Main Is it an
name name product Characteristics customer main sales
City Authorizing Authorization exclusive
type group products area
tier party period authorization
Marketing and operation of each brand during the Reporting Period
For detailed information please refer to "Section III Management Discussion and Analysis" –
"III. Analysis of Main Business" of this Report.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 39 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 √No
V. Non-Core Business Activities
√Applicable ?N/A
Unit: RMB
Amount Proportion of total profit Reason Sustainability
Primarily due to matured
Investment Associate income is
income 9965393.41 1.50%
returns on wealth management
products and recognised gains sustainable; others
from associates are not
Gains and losses Primarily due to changes in fair
from changes in 31032052.63 4.69% value of wealth management No
fair value products
Asset impairment -37175924.45 -5.61% Primarily due to provision for inventory write-down No
Non-operating Primarily due to gains from the
revenue 4037383.38 0.61% disposal of non-current assets No and other non-operating income
Non-operating 6688151.10 1.01% Primarily due to losses from the expense disposal of non-current assets No
Credit impairment Primarily due to expected credit
loss -7345527.12 -1.11% loss provisions for accounts No receivable and other receivables
Gains on disposal -478162.30 -0.07% Primarily due to disposal of of assets noncurrent assets No
Tax relief and
Primarily due to receipt of reductions and
Other revenue 43044484.26 6.50% government grants related to cotton transport
business operations subsidies are sustainable; others
are not
Semi-Annual Report
VI. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of the Reporting Period End of the previous year
Proportion Proportion Change in
Explanation of
percentage significant Amount changes of Amount changes of changes
total assets total assets
Without
Currency fund 1795389119.40 9.46% 1593989319.92 8.66% 0.80% significant
changes
Accounts Without
receivable 1121776230.09 5.91% 1040873548.50 5.66% 0.25% significant changes
Without
Inventories 2126725523.82 11.21% 2016213055.34 10.95% 0.26% significant
changes
Primarily due
Investment to depreciation
properties 1004639.45 0.01% 1454295.27 0.01% 0.00% provided during the
period
Long-term Without
equity 454677644.46 2.40% 478989825.04 2.60% -0.20% significant
investments changes
Without
Fixed assets 4138743158.96 21.82% 4199969234.92 22.82% -1.00% significant
changes
Construction in Without
progress 492588739.83 2.60% 511625219.44 2.78% -0.18% significant changes
Right-of-use Without
assets 502894087.30 2.65% 554782629.68 3.01% -0.36% significant changes
Short-term Without
borrowings 2243763641.49 11.83% 1836629579.24 9.98% 1.85% significant changes
Contract Without
liabilities 175162613.43 0.92% 169914491.43 0.92% 0.00% significant changes
Primarily due
to an increase
Long-term
borrowings 158330000.00 0.83% 50000000.00 0.27% 0.56%
in borrowings
from banks
during the
period
Without
Lease liabilities 376062536.06 1.98% 416875073.97 2.27% -0.29% significant
changes
Primarily due
Notes
receivable 14710897.33 0.08% 39357178.51 0.21% -0.13%
to fewer bank
acceptance bills
received during
the period
Primarily due
Advances to to an increase
Suppliers 317089623.75 1.67% 179318742.70 0.97% 0.70% in prepayments for cotton and
other goods
Primarily due
Non-current to an increase
assets due 673052787.67 3.55% 432793859.90 2.35% 1.20% in certificates
within a year of deposit due
within one year
Primarily due
to a decrease in
Other non-
current assets 1215146750.80 6.40% 1657761021.19 9.01% -2.61%
certificates of
deposit with
maturities over
one year
Primarily due
to share
Treasury shares 133637343.38 0.70% 4187537.10 0.02% 0.68% repurchases
during the
period
Other Primarily due
comprehensive -36177752.76 -0.19% -11835038.99 -0.06% -0.13% to significant
income exchange rate fluctuations
2. Major Overseas Assets
?Applicable √N/A
3. Assets and Liabilities Measured at Fair Value
√Applicable ?N/A
Unit: RMB
Fair value
changes Cumulative Impairment
Item Opening balance recognised in
fair value in provision Purchases during Sales during the
profit or loss for changes recognised in of current
the Reporting
Period Reporting Period
Other changes Closing balance
the current period
period equity
Financial
assets
1. Financial
assets held
for trading
(excluding 2825378695.56 31032052.63 2289160712.24 1886000000.00 -81401.35 3259490059.08
derivative
financial
assets)
5. Other non-
current
financial 99881071.54 -1008649.77 98872421.77
assets
Subtotal of
financial 2925259767.10 31032052.63 2289160712.24 1886000000.00 -1090051.12 3358362480.85
assets
Total of the
above 2925259767.10 31032052.63 2289160712.24 1886000000.00 -1090051.12 3358362480.85
Other changes
Other changes were primarily exchange translation differences
Has there been any significant change in the measurement attributes of the Company’s major
Semi-Annual Report
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 the Consolidated
Financial Statements – 31. Assets with restricted ownership or use rights.VII. Investment Analysis
1. Overall Situation
√Applicable ?N/A
Investment amount in the Reporting Investment amount in the same
Period (RMB) period of the previous year (RMB) Change percentage
2401118346.41 456139517.21 426.40% Note
Note: Primarily due to an increase in the purchase of wealth management products during the
period.
2. Significant Equity Investments Acquired during the Reporting Period
?Applicable √N/A
3. Significant Non-Equity Investments in Progress during the Reporting Period
√Applicable ?N/A
Unit: RMB
Reasons
Cumulative for not
Cumulative realized meeting
Project Investment Investment
Industries Investment actual investment Source gains as of the Date of
name method in fixed
involved in amount in the
investment current Reporting amount as of the of
Project Estimated
progress income the end of scheduled disclosure Disclosure index (if any) assets or not projects Period end of the funds the progress (if any) Reporting Period Reporting and
Period projected
earnings
Production
base project
for pure
cotton Textile and Self- 12
spunlace Independent Yes apparel etc. 111957634.17 111957634.17 owned 5.6% 0.00 0.00 N/A November
CNINFO
funds 2025 (HTTPS://.COM.CN/) non-woven
fabric series
products
Total -- -- -- 111957634.17 111957634.17 -- -- 0.00 0.00 -- -- --
4. Financial Assets Measured at Fair Value
√Applicable ?N/A
Unit: RMB
Fair value changes Cumulative fair
Asset Initial investment recognised in profit or value changes Purchase amount in the Sales during the Accumulated Source of
classes cost loss for the current recognised in current Reporting Period Reporting Period investment income Other changes Closing balance funds
period equity
Self-
Others 1906758973.68 23637576.81 2139160712.24 1636000000.00 10903588.50 -1090051.12 2444577987.70 owned
funds
Trust Self-
products 1000000000.00 7394475.82 150000000.00 250000000.00 6149675.38 0.00 913784493.15 owned funds
Total 2906758973.68 31032052.63 2289160712.24 1886000000.00 17053263.88 -1090051.12 3358362480.85 --
5. The Use of Proceeds
?Applicable √N/A
The Company had no use of raised funds during the Reporting Period.
6. Entrusted Wealth Management and Derivative Investments
(1) Information of entrusted financial management
√Applicable ?N/A
Overview of entrusted financial management during the Reporting Period
Semi-Annual Report
Unit: ’0000 RMB
Balance of entrusted wealth
Product categories Risk characteristics management during the Overdue amount not
Reporting Period recovered
Bank financial Principal guaranteed and floating
products income non-principal guaranteed 230774.38 0 and floating income
Trust financial Non-principal guaranteed and
products floating income 90000 0
Details regarding the Company’s engagement of financial institutions as a single client to
conduct asset management or invest in high-risk wealth management products with lower safety
and poorer liquidity
?Applicable √N/A
(2) Derivatives investment
?Applicable √N/A
No derivative investment in the Company during the Reporting Period
VIII. Disposal of Major Assets and Equity
1. Sale 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
The Company had no significant controlling or participating companies requiring disclosure
during the Reporting Period.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 and Countermeasures
The medical device industry due to its direct connection to the life health and safety of users is
always 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 profound policy changes it could face operational
challenges. As a result the Company must remain vigilant of policy developments and actively
adjust its business strategies 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
pricing policies market demand futures prices international trade policies 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 cotton procurement and stocking mechanism. 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 of Competition in the Consumer Goods Business
The markets for various categories of the Company’s consumer goods business are intensely
competitive with competitors ranging from established domestic and international brands to new
market entrants. Competitors may strive for market share through price wars increased
marketing investment product innovation or channel expansion which poses risks such as a
decline in the Company’s market share a slowdown in revenue growth and pressure on profit
margins. Meanwhile consumer preferences evolve rapidly; if the Company fails to capture
future consumption trends in a timely manner or suffers from insufficient innovation in product
development it may face adverse operating conditions. To mitigate these risks the Company has
established a stable management team and an efficient decision-making mechanism. We
regularly formulate rigorous business plans to gain timely insights into market changes and
maintain continuous R&D and innovation. By consistently adhering to the principles of product
leadership and operational excellence the Company strives to meet evolving consumer needs
and enhance brand recognition.Semi-Annual Report
4. Risk from Shifts in the International Trade Environment and Countermeasures
Currently the global trade landscape remains volatile and complex shaped by geopolitical
tensions tariff policy changes adjustments to import and export policies and fluctuations in
international logistics costs. These dynamics may increase the costs and difficulties of the
Company's overseas business. 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. The
Company will fully leverage GRI's global manufacturing footprint across the United States the
Dominican Republic and Vietnam to restructure its supply chain system and adjust its market
deployment strategies with agility to minimize the potential operational impact of external
uncertainties.
5. Risk of Exchange Rate Fluctuations 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. 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 RMB exchange rate may
impact the market competitiveness of the Company’s overseas products and result in
corresponding foreign exchange losses 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.
6. Risks of Cross-Border Acquisitions and Countermeasures
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 post-acquisition management system. Through strategic business integration resource
consolidation and targeted management incentives the Company aims to improve the
operational performance of acquired entities 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 RMB334.5
million in compensation. However the remaining balance of approximately RMB215 million is
at risk of nonrecovery. The Company is actively maintaining communication and consultation
with the local government and continues to pursue the recovery of the remaining compensation.Semi-Annual Report
XII. Record of Investor Relations Activities Including Research Visits Communications
and Interviews during the Reporting Period
√Applicable ?N/A
Main topics
Reception Reception location Reception Type of Visitor discussed and
Index of
date method visitor materials basic
provided research visit
Details are
14 institutional available on
23 Headquarters investors such as Business the
January exhibition hall and Field surveys Institution First Seafront overview and interactive
2026 meeting room Fund CITIC operating platform of Securities and performance Shenzhen
GF Securities Stock
Exchange
16 institutional Details are
investors such as available on
29 Headquarters Huatai Asset Business the
January exhibition hall and Field surveys Institution Management overview and interactive
2026 meeting room TruValue Asset operating platform of
Management performance Shenzhen
and GF Fund Stock Exchange
Shenzhen Panorama
Network Roadshow 59 institutional Details are
Hall; Winner Group investors available on
22-23 WeChat Channels; including Business the
April Panorama Network; Others Institution Taikang Asset performance interactive
2026 Wind Information; Management for FY2025 platform of
Eastmoney; China Universal and Q1 2026 Shenzhen
Tonghuashun; and Invesco Stock
Jinmen Caijing Great Wall Exchange
38 securities Details are
analysts from available on
07 May Phone CITIC Securities
Business the
Teleconference Institution GF Securities overview and interactive 2026 communication Huatai operating platform of
Securities and performance Shenzhen
other institutions Stock Exchange
XIII. Establishment and Implementation of Market Capitalisation Management Systems and
Valuation Enhancement Plans
Has the Company established a market capitalisation management system
√Yes ?No
For the further standardization of its market capitalisation management practices the Company
has formulated the Market Capitalisation 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 Capitalisation Management and was reviewed and approved at the 6th meeting of the
4th session of the Board of Directors.
Has the Company disclosed a valuation enhancement plan
?Yes √No
Semi-Annual Report
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
To implement the guiding principles of "activating the capital market and boosting investor confidence"
proposed at the meeting of the Political Bureau of the CPC Central Committee and the guiding principles
of "vigorously improving the quality and investment value of listed companies" proposed at the State
Council Executive Meeting and to actively respond to the Shenzhen Stock Exchange's initiative to carry
out the "Dual Improvement of Quality and Return" special action safeguard the interests of all
shareholders enhance investor confidence and promote the Company's long-term healthy and
sustainable development the Company formulated the "Dual Improvement of Quality and Return" Action
Plan. For details please refer to the "Announcement on the 'Dual Improvement of Quality and Return'
Action Plan" disclosed by the Company on CNINFO (Announcement No.: 2024-014). For updates on the
implementation of the Action Plan please refer to the "Progress Announcement on the 'Dual
Improvement of Quality and Return' Action Plan" (Announcement No.: 2026-008) and the "Progress
Announcement on the 'Dual Improvement of Quality and Return' Action Plan" (Announcement No.:
2026-040) both disclosed by the Company on CNINFO on 22 April 2026 and 25 August 2026
respectively.Section IV
Environmental Social
and Corporate
Governance
The model image in this figure is AI-
generated
Semi-Annual Report
I. Changes of Directors and Senior Management
?Applicable √N/A
There were no changes in the Company's Directors or senior management during the Reporting
Period. For details please refer to the 2025 Annual Report.II. Profit Distribution and Share Capital Increase from Capital Surplus during 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) 5.0
Number of shares to be converted from capital surplus per 10 shares held (shares) 0
Base of share capital for the distribution plan (shares) 574924166
Amount of cash dividend (RMB) (tax inclusive) 287462083.00
Amount of cash dividend in other forms (e.g. share repurchase) (RMB) 129441004.74
Total amount of cash dividend (including in other forms) (RMB) 416903087.74
Profit available for distribution (RMB) 4673591958.80
Proportion of total amount of cash dividend (including in other forms) in the total
amount of profit distributed 100%
Current Cash Dividend
Others
Detailed explanation on profit distribution plan and the proposal on share capital increase from capital surplus
The Company's profit distribution plan for the first half of 2026 is as follows: based on 574924166 shares
representing the total share capital of 582970928 shares as of 21 August 2026 less 8046762 shares held in
the special securities account for repurchase the Company will distribute a cash dividend of RMB5.0 (tax
inclusive) for every 10 shares to all shareholders with an estimated total cash dividend of
RMB287462083.00 (tax inclusive). No bonus shares will be issued and no shares will be converted from
capital reserves. During the period from the disclosure of the profit distribution plan through its
implementation if the total number of shares entitled to the distribution changes the Company will make
corresponding adjustments based on the principle that the cash dividend per share remains unchanged while
the total cash dividend amount is adjusted accordingly.The Company's total cash dividends and share repurchases for the first half of 2026 amounted to
RMB416903087.74 representing 81.19% of the net profit attributable to shareholders of the listed company
for the first half of 2026. This amount includes: (1) a cash dividend of RMB5.0 (tax inclusive) for every 10
shares to all shareholders for the first half of 2026 with an estimated total cash dividend of
RMB287462083.00 (tax inclusive) representing approximately 55.98% of the net profit attributable to
shareholders of the listed company for the first half of 2026; and (2) from January to June 2026 the Company
repurchased 4604262 shares through the special securities account for repurchases via centralized bidding
with a total transaction amount of RMB129441004.74 (excluding transaction costs) representing
approximately 25.21% of the net profit attributable to shareholders of the listed company for the first half of
2026.
III. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
√Applicable ?N/A
1. Equity Incentive
(1) On 22 May 2026 the Company held the 12th meeting of the 4th session of the Board of
Directors which reviewed and approved the "Proposal on the Satisfaction of Vesting Conditions
for the First Vesting Period of the Initial Grant under the 2024 Restricted Stock Incentive Plan"
approving the vesting of 648480 restricted shares for 91 eligible incentive participants. After the
Board of Directors approved the satisfaction of the vesting conditions for the first vesting period
of the initial grant one incentive participant resigned during the process of fund payment and
share registration. In accordance with the relevant provisions of the Company's "2024 Restricted
Stock Incentive Plan (Draft)" the restricted shares granted to this incentive participant that had
not yet vested were no longer eligible for vesting and were therefore cancelled by the Company.Accordingly the actual number of incentive participants eligible for vesting during the first
vesting period of the initial grant under the Company's 2024 Restricted Stock Incentive Plan was
90 and the actual number of vested shares was 641120.
(2) On 22 May 2026 the Company held the 12th meeting of the 4th session of the Board of
Directors which reviewed and approved the "Proposal on the Cancellation of Certain Granted
but Unvested Restricted Shares under the 2024 Restricted Stock Incentive Plan." As the
performance assessment results at the Company level and the medical business segment level did
not meet the vesting conditions for the first vesting period of the initial grant 1652400 granted
but unvested restricted shares were not eligible for vesting and were therefore cancelled by the
Company. As the performance assessment of the consumer goods business segment did not
satisfy all vesting conditions 162120 granted but unvested restricted shares were not eligible for
vesting and were therefore cancelled by the Company. In addition 37 of the 308 incentive
participants under the initial grant had resigned and no longer met the eligibility criteria.Accordingly their 818800 granted but unvested restricted shares were not eligible for vesting
and were cancelled by the Company. In summary the Company cancelled a total of 2633320
restricted shares in this round.
(3) On 22 May 2026 the Company held the 12th meeting of the 4th session of the Board of
Directors which reviewed and approved the "Proposal on Adjusting the Grant Price of the 2024
Restricted Stock Incentive Plan." The Company adjusted the grant price under the incentive plan
following the implementation of the equity distribution. Following the completion of the 2025
annual equity distribution the grant price for both the initial and reserved restricted shares under
the incentive plan was adjusted from RMB14.69 per share to RMB14.39 per share.
2. Implementation of Employee Stock Ownership Plan
√Applicable ?N/A
All effective employee stock ownership plans implemented during the Reporting Period
Number of Total Proportion of total Scope of employee shares held Change share capital of Sources of funds to employee (shares) listed company implement the plan
Core employees at Incentive funds raised by
director level (inclusive) 12 323400 None 0.06% employees themselves
or above and provided by the Company
Note: The total number of shares held does not include shares that have not fully vested due to
Semi-Annual Report
the departure of holders or the results of individual performance assessments during the vesting
period. Such shares will be recovered by the management committee and reallocated to other
eligible employees. If no suitable candidates are identified the corresponding rights and interests
will be sold at an appropriate time after the end of the lock-up period with the proceeds retained
by the Company.Shares held by Directors and senior management under the employee stock ownership plan
during the Reporting Period
Number of shares held
at the beginning of the Number of shares held at Name Position Reporting Period the end of the Reporting
Proportion of total share
(shares) Period (shares)
capital of listed companies
Liao
Meizhen Director
Deputy 70000 70000 0.01% Liao
Guanlai General Manager
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
During the Reporting Period the Company's employee stock ownership plan exercised
shareholder rights in connection with the 2025 annual profit distribution but did not participate
in voting at shareholders' meetings or exercise any other shareholder rights.Other pertinent circumstances and explanations regarding the employee stock ownership plan
during the Reporting Period.?Applicable √N/A
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/A
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 plans during the Reporting Period
?Applicable √N/A
Other explanation:
N/A
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
required to disclose environmental information according to law
√Yes ?No
Number of enterprises included in the list of enterprises
required to disclose environmental information according 7
to law
No. Name of enterprise Search index for environmental information disclosure report according to law
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
1 Winner Medical (Tianmen) Co. Ltd. enterpriseinfoXTXH=d059f64e-54be-4ee3-a8d0-
37f0bdd3e1ce&XH=1677750544908009244672&year=2025
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
2 Winner Medical (Huanggang) Co. Ltd. enterpriseinfoXTXH=41aa2d89-4666-4624-bb27-4e470b9826c8&XH=1677749938692009244672&year=202
5
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
3 Winner Medical (Jingmen) Co. Ltd. enterpriseinfoXTXH=9ff469e8-7109-4ec8-9af8-
2a4d8ef5eecb&XH=1677750239445009244672&year=2025
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
4 Winner Medical (Wuhan) Co. Ltd. enterpriseinfoXTXH=5bf65297-4e71-459c-96d0-423379ee7254&XH=1677751227336009244672&year=202
5
5 Winner Medical (Jiayu) Co. Ltd. (New
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
Plant) enterpriseinfoXTXH=9c5c76f6-825e-4f81-bae0-211263e0ea02&XH=1744247503922026976256&year=2025
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/
6 Winner Medical (Chongyang) Co. Ltd. enterpriseinfoXTXH=00266d7c-f87f-4cbf-b9ee-c5174377533d&XH=1677751425806009244672&year=202
5
Winner Medical (Hunan) Co. Ltd. https://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html
7 (former name: Hunan Ping'an Medical #/home/enterpriseinfoXTXH=6b11b5b4-9959-4b89-9aca-
Device Technology Co. Ltd.) 40b3578810bf&XH=1745995454400084000768&year=2025&reporttype=1
Semi-Annual ReportThe Company is subject to the disclosure requirements for “Textile and Apparel RelatedBusiness” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 –
Industry Information Disclosure.Information on environmental accidents of listed companies
None
V. Social Responsibility
The Company upholds its core business principles of "Quality over the Profit Brand over the
Speed and Social Value over the Corporate Value." Guided by a long-term approach it remains
committed to public welfare initiatives and actively fulfills its corporate social responsibilities. In
the first half of 2026 the Company's public welfare initiatives covered areas including elderly
care and assistance care for women and children science and education assistance ecological
and environmental protection and emergency relief.
1. Elderly care and assistance was the core focus of the Company's public welfare efforts during
the first half of the year. Leveraging its strengths in healthcare the Company worked through
multiple established charitable platforms to provide nursing pads adult diapers and other age-
appropriate supplies to elderly care institutions in various regions. By addressing the daily care
needs of older adults with greater precision and leveraging professional industry resources to
support senior care services the Company continued to advance targeted and effective public
welfare initiatives for the elderly.
2. The Company's public welfare initiatives for women and children continued to evolve.
Purcotton's core public welfare initiative "Nice Princess" expanded its services and enhanced
their quality. Building on its regular menstrual health education and public welfare assistance
programs the initiative extended its reach to hearing-impaired women for the first time
supporting the physical and mental wellbeing of women with disabilities through targeted
donations of supplies. At the same time the Company conducted charitable sales during
International Women's Day donating all proceeds to the Longhua Women and Children
Foundation. Through these ongoing initiatives the brand further strengthened its commitment to
public welfare and community care.
3. In the field of science and education assistance the Company actively fulfilled its
commitment to supporting education established a platform for developing scientific and
technological innovation talent continued to provide regular educational assistance and
provided targeted support to young students pursuing their aspirations. Through these public
welfare efforts the Company also promoted broader access to quality educational resources.
4. The Company's volunteer service system completed a standardized upgrade. In the first half of
2026 subsidiaries in Huanggang Tianmen Guilin and other locations across the country
actively organized a range of volunteer activities including tree planting and greening flood
prevention and relief safety education and event support. Three subsidiaries formally
established dedicated volunteer organizations and integrated them into the Company's
management system marking the transition of the Company's volunteer services from scattered
and spontaneous activities to a more standardized and systematic model.
5. Establishment of a regular disaster emergency response system. In the first half of 2026 the
Company urgently dispatched emergency supplies in response to the Tai Po fire in Hong Kong
and flooding in Guangxi actively participating in humanitarian assistance efforts and leveraging
its industry resources to support disaster relief and the protection of people's livelihoods.
6. Ecological and environmental protection public welfare practices. The Company actively
promoted green development and organized a range of volunteer initiatives focused on
ecological and environmental protection. The Huanggang base carried out tree planting and
greening plant beautification and post-disaster environmental remediation. The Jingmen base
promoted health education and low-carbon environmental protection awareness. The
headquarters organized greenway cleaning and remediation activities. These initiatives were
carried out across multiple locations actively promoting green and low-carbon practices.
7. The Company continued to strengthen internal employee care. Relying on two employee care
and assistance platforms the Company regularly provided support to employees facing
difficulties. Its long-term assistance mechanism helped address employees' urgent needs and
concerns demonstrating the Company's commitment to caring for its employees and fulfilling its
corporate responsibilities.Going forward the Company will continue to uphold its three priority principles take social and
livelihood needs as a core focus and deepen its public welfare efforts. Through long-term high-
quality public welfare initiatives the Company will continue to convey the warmth of its brands
proactively fulfill its social responsibilities and demonstrate the original aspirations and mission
of a leading Chinese enterprise.Semi-Annual Report
Section V
Important Matters
I. Commitments Fulfilled 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
?Applicable √N/A
No commitments fulfilled within the Reporting Period and not fulfilled by the end of the
Reporting Period by the Company’s actual controller shareholders related parties acquirers and
other commitment parties.II. Non-operating Occupation of Funds of Listed Companies by Controlling Shareholders
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. Statement of the Board of Directors and the Audit Committee on the “Non-StandardAudit Report” of the Accounting Firm during the Reporting Period
?Applicable √N/A
VI. Statement of the Board of Directors on the “Non-Standard Audit Report” of the
Previous Year
?Applicable √N/A
Semi-Annual Report
VII. Matters Related to Bankruptcy Reorganization
?Applicable √N/A
The Company had no matters related to bankruptcy reorganization during the Reporting Period.VIII. Litigation Matters
Major litigation 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.
5. Transactions with Related Finance Companies
?Applicable √N/A
There was no deposit loan credit granting or other financial business among the Company
finance companies with a related-party relationship and related parties.
6. Transactions between the Company’s Majority-Owned Finance 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.Semi-Annual Report
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/A
The Company had no major contracts for day-to-day operations during the Reporting Period.
4. Other Major Contracts
?Applicable √N/A
The Company had no other major contracts during the Reporting Period.XIII. Explanation on Other Significant 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. 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 supplementary agreements in August 2024 with Xingda
Company and its affiliate Shenzhen Galaxy Real Estate Development Co. Ltd. According to the
supplementary agreements 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. Given the significant volatility in the real
estate market there is uncertainty regarding the area of residential space and the amount of
compensation the Company will obtain. For further details please refer to the relevant
announcements disclosed by the Company on CNINFO (www.cninfo.com.cn).As of now Xingda Company has obtained the "Construction Land Planning Permit" for the
Winner Industrial Park urban renewal project and is advancing the signing of the state-owned
land use right transfer contract. Subsequently it will proceed with land development and
construction in accordance with the relevant government procedures. This project is subject to
factors such as adjustments in urban renewal regulations and policies changes in urban planning
the partner's ability to perform its obligations market conditions prices and force majeure and
has a long implementation period. The Company will actively promote the project strengthen
communication and process control and strive to reduce uncertainties in the execution process.XIV. Significant Events of Subsidiaries
?Applicable √N/A
Semi-Annual Report
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
Share
capital
Number Proportion New issue Bonus increase of shares issuance from Others Subtotal Number Proportion
capital
surplus
I. Shares with selling
restrictions 2638826 0.45% 0 0 0 -28850 -28850 2609976 0.45%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by
stateowned legal persons 0 0.00% 0 0 0 0 0 0 0.00%
3. Other shares held by
domestic individuals and 2638826 0.45% 0 0 0 -28850 -28850 2609976 0.45%
legal persons
Including: shares held
by domestic legal 0 0.00% 0 0 0 0 0 0 0.00%
persons
Shares held by
domestic
natural 2638826 0.45% 0 0 0 -28850 -28850 2609976 0.45%
persons
4. Shares held by
overseas individuals and 0 0.00% 0 0 0 0 0 0 0.00%
legal persons
Including: shares held
by overseas legal 0 0.00% 0 0 0 0 0 0 0.00%
persons
Shares held by
overseas
natural 0 0.00% 0 0 0 0 0 0 0.00%
persons
II. Shares without selling
restrictions 579690982 99.55% 0 0 0 669970 669970 580360952 99.55%
1. RMB ordinary share 579690982 99.55% 0 0 0 669970 669970 580360952 99.55%
2. Domestically listed
foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
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 641120 641120 582970928 100.00%
Reasons for changes in shares
√Applicable ?N/A
1. Shareholdings of Directors former 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.
2. On 22 May 2026 the Company held the 12th meeting of the 4th session of the Board of
Directors which reviewed and approved the "Proposal on the Satisfaction of Vesting Conditions
for the First Vesting Period of the Initial Grant under the 2024 Restricted Stock Incentive Plan"
approving the vesting of Class II restricted shares for eligible incentive participants. A total of
641120 shares vested and became listed and tradable with a listing date of 30 June 2026.
Approval on changes in shares
Semi-Annual Report
√Applicable ?N/A
For details please refer to Point 2 of "Reasons for Changes in Shares" under "1. Changes in
Shares" in this section.Transfer due to changes in shares
?Applicable √N/A
Implementation progress of share repurchase
√Applicable ?N/A
The Company held the 11th meeting of the 4th session of the Board of Directors on 30 April
2026 and the 2025 Annual General Meeting of Shareholders on 14 May 2026. Both meetings
reviewed and approved the "Proposal on Repurchase of Company Shares for Cancellation"
approving the use of the Company's own funds to repurchase shares through centralized bidding
for the purpose of reducing the Company's registered capital. The repurchase price shall not
exceed RMB48 per share (inclusive) and the total amount of funds used for the share repurchase
shall be no less than RMB200 million (inclusive) and no more than RMB400 million (inclusive).The final repurchase amount will be based on the actual funds used. The share repurchase will be
implemented within 12 months from the date on which the shareholders' meeting approves the
repurchase plan.According to the Company's "Repurchase Report" if the Company undergoes any ex-rights or
ex-dividend event such as dividend distribution bonus share issuance or conversion of capital
reserves into share capital during the repurchase period the Company will adjust the maximum
repurchase price accordingly from the ex-rights and ex-dividend date. The Company's 2025
annual equity distribution has been completed. Accordingly the maximum repurchase price has
been adjusted from RMB48 per share (inclusive) to RMB47.70 per share (inclusive).On 22 May 2026 the Company held the 12th meeting of the 4th session of the Board of
Directors which reviewed and approved the "Proposal on Adjusting the Source of Funds for
Share Repurchase". In response to national policies supporting share repurchases by listed
companies and to further improve capital utilization efficiency the Company approved the
adjustment of the source of funds for the share repurchase from "own funds" to "own funds
and/or self-raised funds." Except for the above adjustment no other content of the share
repurchase plan has changed. For details please refer to the relevant announcements disclosed
by the Company on CNINFO.As of 30 June 2026 the Company had repurchased 4604262 shares through the special
securities account for repurchase via centralized bidding for the purpose of reducing registered
capital representing approximately 0.7898% of the Company's current total share capital. The
highest transaction price was RMB30.06 per share the lowest transaction price was RMB26.87
per share and the total transaction amount was RMB129441004.74 (excluding transaction
costs).Implementation progress of reducing repurchased shares by centralized competitive bidding
?Applicable √N/A
Influence of share changes on the basic earnings per share diluted earnings per share net assets
per share attributable to ordinary shareholders of the Company and other financial indexes in the
most recent year and the most recent period
√Applicable ?N/A
During the Reporting Period the impact of changes in the Company's shares on financial
indicators such as basic earnings per share and diluted earnings per share for the most recent year
and the most recent period and net assets per share attributable to ordinary shareholders of the
Company is detailed in "IV. Key Accounting Data and Financial Indicators" under "Section II
Company Profile and Key Financial Indicators".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 Number of
Opening restricted restricted Closing
Name of number of shares shares number of Reason for
shareholder restricted released in increased restricted restriction Restriction release date
shares current in current shares
period period
Locked shares
held by Subject to the relevant
Zhang 61905 15476 0 46429 Directors
regulations on share lockup
Tingting Supervisors for departing Directors
and senior Supervisors and senior
management management
Locked shares
held by Subject to the relevant
Wu 53496 13374 0 40122 Directors
regulations on share lockup
Kezhen Supervisors for departing Directors
and senior Supervisors and senior
management management
Locked shares
held by
Fang 2077751 0 0 2077751 Directors
25% of the total shares held
Xiuyuan Supervisors are unlocked at the beginning
and senior of each year
management
Locked shares
held by
Chen Directors 25% of the total shares held
Huixuan 348726 0 0 348726 Supervisors are unlocked at the beginning
and senior of each year
management
Locked shares
held by
Directors 25% of the total shares held Zhang Yan 96948 0 0 96948 Supervisors are unlocked at the beginning
and senior of each year
management
Total 2638826 28850 0 2609976 -- --
II. Securities Issuance and Listing
?Applicable √N/A
III. Number and Shareholding of the Company's Shareholders
Semi-Annual Report
Unit: share
Total number of ordinary Total number of preference Total number of
shareholders at the end of 29602 shareholders with restored voting 0 shareholders holding
the Reporting Period rights at the end of the shares with special
0
Reporting Period (if any) (see Note 8) voting rights (if any)
Shareholding information of shareholders holding 5% or more or the top 10 shareholders
(excluding shares lent through margin financing and securities lending)
Number of Number of Number of Pledge mark or shares held Change held frozen
Name of shareholder Nature of Shareholding at the end of during the shares
held shares
shareholder ratio the Reporting with without
Reporting Period selling selling Status Number
Period restrictions restrictions
Overseas
Winner Group Limited legal 69.75% 406614387 0 0 406614387 N/A 0
person
Bank of China Limited –
Huabao CSI Healthcare Others 1.36% 7919560 776400 0 7919560 N/A 0
ETF
Hong Kong Securities Overseas
Clearing Company legal 0.93% 5411254 799503 0 5411254 N/A 0
Limited person
Domestic
Fang Xiuyuan natural 0.48% 2770335 0 2077751 692584 N/A 0
person
Domestic
Peng Ganquan natural 0.41% 2409400 1304400 0 2409400 N/A 0
person
Domestic
Zheng Junhui natural 0.28% 1626380 0 0 1626380 N/A 0
person
Domestic
Xia Xinming natural 0.25% 1438414 / 0 1438414 N/A 0
person
China Merchants Bank
Co. Ltd. – Yongying CSI
All-Share Medical Others 0.25% 1433458 261120 0 1433458 N/A 0
Devices Exchange-
Traded Index Fund
Domestic
Li Houheng natural 0.23% 1336000 37200 0 1336000 N/A 0
person
Industrial and
Commercial Bank of
China Limited E Fund Others 0.19% 1102352 -2353897 0 1102352 N/A 0 –
ChiNext ETF
Strategic investors or general legal
persons who become the top 10
shareholders due to rights issue (if any) N/A
(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 rights
among the above-mentioned N/A
shareholders
Special note on the repurchase account As of 30 June 2026 the Company's special securities account for repurchase held
among the top 10 shareholders (if any) 4604262 shares representing 0.79% of the Company's total share capital. These shares
(see Note 11) are not included in the list of the top 10 shareholders or the top 10 holders of shares
without selling restrictions.Shareholding information of the top 10 shareholders of shares without selling restriction (excluding shares lent
through margin financing and securities lending and lockup shares held by senior management
Number of held shares Type of share
Name of shareholder without selling restrictions as of the end Type of share Number
of the Reporting Period
Winner Group Limited 406614387 RMB ordinary shares 406614387
Bank of China Limited –
Huabao CSI Healthcare ETF 7919560 RMB ordinary shares 7919560
Hong Kong Securities Clearing
Company Limited 5411254 RMB ordinary shares 5411254
Peng Ganquan 2409400 RMB ordinary shares 2409400
Zheng Junhui 1626380 RMB ordinary shares 1626380
Xia Xinming 1438414 RMB ordinary shares 1438414
China Merchants Bank Co. Ltd.– Yongying CSI All-Share
Medical Devices Exchange- 1433458 RMB ordinary shares 1433458
Traded Index Fund
Li Houheng 1336000 RMB ordinary shares 1336000
Industrial and Commercial Bank
of China Limited – E Fund 1102352 RMB ordinary shares 1102352
ChiNext ETF
Pan Wenqi 1092319 RMB ordinary shares 1092319
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
In addition to holding 48400 shares through his ordinary securities account
the Company's shareholder Xia Xinming holds an additional 1390014
Information on top 10 shares through the customer credit trading guarantee securities account of
shareholders involved in margin CITIC Securities Co. Ltd. bringing his actual total shareholding to
trading and securities lending (if 1438414 shares. In addition to holding 26400 shares through her ordinary
any) (see Note 4) securities account the Company's shareholder Li Houheng holds an additional 1309600 shares through the customer credit trading guarantee
securities account of China Galaxy Securities Co. Ltd. bringing her actual
total shareholding to 1336000 shares.Shares lent through mar gin 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
Semi-Annual Report
Has the Company a differentiated voting rights structure
?Yes √No
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. Changes in Shareholdings of Directors and Senior Management
?Applicable √N/A
There were no changes in the shareholdings of the Company's Directors or senior management
during the Reporting Period. For details please refer to the 2025 Annual Report.V. Change in Controlling Shareholders or Actual Controllers
If the Company has previously disclosed that the actual controller is planning a change of control
but the change has not yet been completed please explain the progress of the change of control.?Applicable √N/A
Change of controlling shareholders during the Reporting Period
?Applicable √N/A
The controlling shareholders of the Company remained unchanged during the Reporting Period.Change of actual controller during the Reporting Period
?Applicable √N/A
The actual controller of the Company remained unchanged during the Reporting Period.VI. Preference Shares
?Applicable √N/A
The Company had no preference shares during the Reporting Period.Section VII
Bonds Related
Information
?Applicable √ N/A
Semi-Annual Report
Section VIII
Financial
Report
I. Auditor’s report
Whether the semi-annual report is audited
?Yes √No
The Company's semi-annual financial report has not been audited.II. Financial Statements
The notes to financial statements are expressed in RMB (Renminbi Yuan).Semi-Annual Report
1. Consolidated Balance Sheet
Preparer: Winner Medical Co. Ltd. 30 June 2026 Unit: RMB
Items Closing balance Opening balance
Current assets:
Currency funds 1795389119.40 1593989319.92
Settlement reserves
Placements to banks and other financial institutions
Financial assets held for trading 3259490059.08 2825378695.56
Derivative financial assets
Notes receivable 14710897.33 39357178.51
Accounts receivable 1121776230.09 1040873548.50
Receivables financing 56001074.45 48201306.98
Prepayments 317089623.75 179318742.70
Premium receivable
Reinsurance receivables
Due from Reinsurer for reserve of reinsurance
contract
Other receivables 213272163.77 204468498.11
Including: Interest receivable 0.00
Dividends receivable 0.00
Financial assets held under resale agreements
Inventories 2126725523.82 2016213055.34
Including: Data resources
Contract assets
Assets classified as held for sale
Current portion of non-current assets 673052787.67 432793859.94
Other current assets 108926561.42 85677714.26
Total current assets 9686434040.78 8466271919.82
Non-current assets:
Loans and advances to customers
Debt investments
Items Closing balance Opening balance
Other debt investments
Long-term receivables 79447453.09 83590080.72
Long-term equity investments 454677644.46 478989825.04
Other equity investments
Other non-current financial assets 98872421.77 99881071.54
Investment properties 1004639.45 1454295.27
Fixed assets 4138743158.96 4199969234.92
Construction in progress 492588739.83 511625219.44
Productive biological assets
Oil and gas assets
Right-of-use assets 502894087.30 554782629.68
Intangible assets 979417428.92 1008848502.75
Including: Data resources
Development expenditures
Including: Data resources
Goodwill 1047272532.34 1061673881.52
Long-term prepaid expenses 127603782.30 133901014.09
Deferred tax assets 147802922.01 146109331.24
Other non-current assets 1215146750.80 1657761021.19
Total non-current assets 9285471561.23 9938586107.40
Total assets 18971905602.01 18404858027.22
Current liabilities:
Short-term borrowings 2243763641.49 1836629579.24
Borrowings from the Central Bank
Placements from banks and other financial
institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 393163306.73 381818750.95
Accounts payable 1112935675.23 1280618737.32
Receipts in advance 0.00
Semi-Annual Report
Items Closing balance Opening balance
Contract liabilities 175162613.43 169914491.43
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 269515877.07 332576791.46
Taxes and surcharges payable 144307205.29 130559536.02
Other payables 599462386.97 529651533.30
Including: Interest payable 0.00
Dividends payable 121984316.10
Fees and commissions payable
Reinsurance payables
Liabilities classified as held for sale
Current portion of non-current liabilities 176414146.32 185546235.07
Other current liabilities 26939891.98 22078405.94
Total current liabilities 5141664744.51 4869394060.73
Non-current liabilities:
Reserves for insurance Contract
Long-term borrowings 158330000.00 50000000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 376062536.06 416875073.97
Long-term payables 25958339.05 26994520.77
Long-term employee benefits payable 13517616.62 13271993.56
Provisions 0.00
Deferred income 223120061.00 211162383.13
Deferred tax liabilities 129588014.52 136896207.18
Other non-current liabilities 411966094.32 387682358.99
Total non-current liabilities 1338542661.57 1242882537.60
Items Closing balance Opening balance
Total liabilities 6480207406.08 6112276598.33
Owner's equity:
Share capital 582970928.00 582329808.00
Other equity investments
Including: Preference shares
Perpetual bonds
Capital reserves 3369637236.71 3389737553.59
Less: Treasury shares 133637343.38 4187537.10
Other comprehensive income -36177752.76 -11835038.99
Specialised reserves
Surplus reserves 420212778.13 420212778.13
General reserve
Undistributed profit 7479253654.32 7140453466.82
Total equity attributable to owners of the parent 11682259501.02 11516711030.45
Non-controlling interests 809438694.91 775870398.44
Total equity 12491698195.93 12292581428.89
Total liabilities and equity 18971905602.01 18404858027.22
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
Semi-Annual Report
2. Balance Sheet of Parent Company
Preparer: Winner Medical Co. Ltd. Unit: RMB
Item Closing Balance Opening balance
Current assets:
Currency funds 810196229.88 713886735.40
Financial assets held for trading 2978202173.82 1978673463.33
Derivative financial assets
Notes receivable 6526496.38 6847204.90
Accounts receivable 486250261.87 453304452.50
Receivables financing 44618769.79 22653120.31
Prepayments 49414425.57 166878123.57
Other receivables 253419300.66 250844030.72
Including: Interest receivable
Dividends receivable
Inventories 233255085.77 218884891.65
Including: Data resources
Contract assets
Assets classified as held for sale
Current portion of non-current assets 673052787.67 432793859.94
Other current assets 9717017.02 9671040.36
Total current assets 5544652548.43 4254436922.68
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 27217926.08 26502052.74
Long-term equity investments 5069218398.42 4999415008.13
Other equity investments
Other non-current financial assets 73603810.38 73603810.38
Investment properties
Fixed assets 316809170.84 315171759.48
Item Closing Balance Opening balance
Construction in progress 22239409.96 32790523.08
Productive biological assets
Oil and gas assets
Right-of-use assets 28003847.99 32839135.44
Intangible assets 53561176.25 39373841.62
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepaid expenses 4994753.34 8721282.84
Deferred tax assets 13796264.81 19996691.95
Other non-current assets 863837368.69 1489288095.87
Total non-current assets 6473282126.76 7037702201.53
Total assets 12017934675.19 11292139124.21
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1235827636.02 935500319.24
Accounts payable 823382879.51 381079772.46
Receipts in advance
Contract liabilities 32889972.78 27210735.47
Employee benefits payable 58335976.67 76798911.73
Taxes and surcharges payable 12673000.63 7061696.17
Other payables 400516738.23 300454835.05
Including: Interest payable
Dividends payable 121984316.10
Liabilities classified as held for sale
Current portion of non-current liabilities 13111349.92 11649279.48
Other current liabilities 4055139.54 2117794.99
Semi-Annual Report
Item Closing Balance Opening balance
Total current liabilities 2580792693.30 1741873344.59
Non-current liabilities:
Long-term borrowings 89100000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 33535765.06 39746851.13
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 1083.33 18133.33
Deferred tax liabilities
Other non-current liabilities 411966094.33 387682358.99
Total non-current liabilities 534602942.72 427447343.45
Total liabilities 3115395636.02 2169320688.04
Owner's equity:
Share capital 582970928.00 582329808.00
Other equity investments
Including: Preference shares
Perpetual bonds
Capital reserves 3368216384.54 3388316701.42
Less: Treasury shares 133637343.38 4187537.10
Other comprehensive income
Specialised reserves
Surplus reserves 411397111.21 411397111.21
Undistributed profit 4673591958.80 4744962352.64
Total equity 8902539039.17 9122818436.17
Total liabilities and equity 12017934675.19 11292139124.21
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
3. Consolidated Income Statement
Preparer: Winner Medical Co. Ltd. Unit: RMB
Item Semiannual 2026 Semiannual 2025
I. Total Revenue 5486211258.52 5296211956.92
Including: Revenue 5486211258.52 5296211956.92
Interest income
Premium earned
Fee and commission income
II. Total Costs 4860235265.17 4657723411.78
Including: Cost of sales 2798167916.13 2736394780.72
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 54141091.23 47206665.58
Selling expenses 1319852862.34 1254903652.81
Administrative expenses 429235127.33 436173126.72
Research and development expenses 192440074.86 194377566.90
Finance expenses 66398193.28 -11332380.95
Including: Interest expenses 25093014.26 32211146.81
Interest income 37540602.03 40152719.55
Add: Other income 43044484.26 44523302.06
Investment income (loss is expressed with “-”) 9965393.41 10250616.45
Including: Income from investments in associates
and joint ventures -7087870.47 -12839023.48
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 “-”)
Semi-Annual Report
Item Semiannual 2026 Semiannual 2025
Fair value gains (loss is expressed with “-”) 31032052.63 8043719.46
Credit impairment losses (loss is expressed with “-”) -7345527.12 -11497804.05
Impairment losses of assets (loss is expressed with “-”) -37175924.45 -32261264.96
Gains on disposal of assets (loss is expressed with “-”) -478162.30 1518248.05
I. Operating profit (loss is expressed with “-”) 665018309.78 659065362.15
Add: Non-operating income 4037383.38 2981866.13
Less: Non-operating expenses 6688151.10 16418323.58
II. Profit before income tax (loss is expressed with “-”) 662367542.06 645628904.70
Less: Income tax expenses 117100459.42 127441441.90
III. Profit (loss is expressed with “-”) 545267082.64 518187462.80
(I) Classified by continuity of operations
1. Profit from continuing operations (loss is expressed with
“-”) 545267082.64 518187462.80
2. Profit from a discontinued operation (loss is expressed
with “-”)
(II) Classified by ownership
1. Profit attributable to shareholders of the parent 513499129.90 491998009.07
2. Profit or loss attributable to non-controlling interests 31767952.74 26189453.73
IV. Net amount of other comprehensive income after tax -22542370.04 2654748.45
Other comprehensive income net of tax attributable to
owners of the parent -24342713.77 -2122693.34
(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 -24342713.77 -2122693.34
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
Item Semiannual 2026 Semiannual 2025
1. Exchange differences on translation of foreign currency
financial statements -24342713.77 -2122693.34
2. Others
Other comprehensive income net of tax attributable to non-
controlling interests 1800343.73 4777441.79
I. Total comprehensive income for the period 522724712.60 520842211.25
Total comprehensive income attributable to owners of the
parent 489156416.13 489875315.73
Total comprehensive income attributable to non-controlling
interests 33568296.47 30966895.52
II. Earnings per share:
(I) Basic earnings per share 0.8821 0.8449
(II) Diluted earnings per share 0.8821 0.8449
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 Yan
Semi-Annual Report
4. Parent Company's Income Statement
Preparer: Winner Medical Co. Ltd. Unit: RMB
Item Semiannual 2026 Semiannual 2025
I. Revenue 1417940383.28 1407280615.50
Less: Cost of sales 929983022.35 930548941.26
Taxes and surcharges 4428501.54 6495567.57
Selling expenses 210122410.27 199054549.91
Administrative expenses 129245017.26 121996944.95
Research and development expenses 47545385.15 42638188.80
Finance expenses 3215461.72 -28923504.18
Including: Interest expenses 6861767.22 8717763.69
Interest revenue 31878962.44 33088095.54
Add: Other income 3122786.03 10208580.77
Investment income (loss is expressed with "-") 11123871.26 27712033.57
Including: Income from investments in associates
and joint ventures -356758.80 213714.71
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 "-") 29528710.49 8128565.77
Credit impairment losses (loss is expressed with "-") -486465.85 -4318872.72
Impairment losses of assets (loss is expressed with "-") -4300275.71 -10216433.96
Gains on disposal of assets (loss is expressed with "-") 0.00 716226.00
II. Operating profit (loss is expressed with "-") 132389211.21 167700026.62
Add: Non-operating revenue 221629.93 172544.11
Less: Non-operating expenses 3221736.84 3077944.32
III. Profit before income tax (loss is expressed with "-") 129389104.30 164794626.41
Less: Income tax expenses 26060555.74 33491893.38
IV. Profit (loss is expressed with "-") 103328548.56 131302733.03
(I) Profit from continuing operations (net loss expressed
with “-”) 103328548.56 131302733.03
(II) Profit from a discontinued operation (net loss expressed
with “-”)
Item Semiannual 2026 Semiannual 2025
V. Other comprehensive income net of 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 103328548.56 131302733.03
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Semi-Annual Report
5. Consolidated Statement of Cash Flows
Preparer: Winner Medical Co. Ltd. Unit: RMB
Item Semiannual 2026 Semiannual 2025
I. Cash flows from investing activities:
Cash receipts from the sale of goods and the rendering of
services 5574052409.21 5180823697.99
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 61895582.32 68856098.69
Other cash receipts relating to operating activities 103564427.62 155792268.99
Total cash inflows from operating activities 5739512419.15 5405472065.67
Cash payments for goods and services 3522086185.42 3261937067.17
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 1136348105.17 1074729045.85
Payments of taxes and surcharges 446187699.04 390462598.16
Other cash payments relating to operating activities 321457538.46 338417580.42
Total cash outflows from operating activities 5426079528.09 5065546291.60
Net cash flows from operating activities 313432891.06 339925774.07
Item Semiannual 2026 Semiannual 2025
II. Cash flows from investing activities:
Cash receipts from investment withdrawal 1992616191.79 1261463648.10
Cash receipts from investment income 16467062.85 22626000.03
Net cash from disposal of fixed assets intangible assets and
other long-term assets 210820.14 76372.10
Net cash receipts from disposal of subsidiaries and other
business units
Other cash receipts relating to investing activities 2130000.00
Total cash inflows from investing activities 2011424074.78 1284166020.23
Cash payments to acquire fixed assets intangible assets and
other long-term assets 353108796.12 304146237.54
Cash payments for investments 1959057662.81 455760177.14
Net increase in pledged loans
Net cash payments for acquisition of subsidiaries and other
business units
Other cash payments relating to other investing activities
Total cash outflows from investing activities 2312166458.93 759906414.68
Net cash flows from investing activities -300742384.15 524259605.55
III. Cash flows from financing activities:
Cash proceeds from investments by others 9225716.80 150000.00
Including: Cash receipts from capital contributions from
non-controlling interests of subsidiaries 150000.00
Cash receipts from borrowings 1187482182.47 1443534035.41
Other cash receipts relating to financing activities
Total cash inflows from financing activities 1196707899.27 1443684035.41
Cash repayments for debts 641612400.51 1787957182.13
Cash payments for distribution of dividends or profit and
interest expenses 65157987.88 227188158.50
Including: Dividends or profit paid to non-controlling
shareholders of subsidiaries
Other cash payments relating to financing activities 246865196.86 169977304.87
Total cash outflows from financing activities 953635585.25 2185122645.50
Net cash flows from financing activities 243072314.02 -741438610.09
IV. Effect of exchange rate changes on cash and cash equivalents -45634701.57 7242233.03
V. Net increase in cash and cash equivalents 210128119.36 129989002.56
Add: Cash and cash equivalents at beginning of period 1560722108.58 1357097385.35
VI. Cash and cash equivalents at end of period 1770850227.94 1487086387.91
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
Semi-Annual Report
6. Parent Company's Statement of Cash Flows
Preparer: Winner Medical Co. Ltd. Unit: RMB
Item Semiannual 2026 Semiannual 2025
I. Cash flow from investing activities:
Cash receipts from the sale of goods and the rendering of
services 2012065346.67 1933668432.22
Receipts of taxes and surcharges refunds 33665877.06 28335242.87
Other cash receipts relating to operating activities 22105966.55 23122316.81
Total cash inflows from operating activities 2067837190.28 1985125991.90
Cash payments for goods and services 621717212.16 955349188.72
Cash payments to and on behalf of employees 216507310.80 193143050.68
Payments of taxes and surcharges 23957951.06 38627293.08
Other cash payments relating to operating activities 342973625.07 630849133.15
Total cash outflows from operating activities 1205156099.09 1817968665.63
Net cash flows from operating activities 862681091.19 167157326.27
II. Cash flows from investing activities:
Cash from investment withdrawal 1190616191.79 1046151241.07
Cash from investment income 11288527.87 33418287.99
Net cash receipts from disposal of fixed assets intangible
assets and other long-term assets 42000.00 3831256.86
Net cash receipts from disposal of subsidiaries and other
business units
Other cash receipts relating to investing activities
Total cash inflows from investing activities 1201946719.66 1083400785.92
Cash payments to acquire fixed assets intangible assets and
other long-term assets 35895842.30 61647973.40
Cash payments for investments 1822025000.00 417000000.00
Net cash payments for acquisition of subsidiaries and other
business units
Other cash payments relating to other investing activities
Total cash outflows from investing activities 1857920842.30 478647973.40
Net cash flows from investing activities -655974122.64 604752812.52
III. Cash flows from financing activities:
Cash proceeds from investments by others 9225716.80
Cash receipts from borrowings 90000000.00
Item Semiannual 2026 Semiannual 2025
Other cash receipts relating to financing activities
Total cash inflows from financing activities 99225716.80 0.00
Cash repayments for debts 0.00 370000000.00
Cash payments for distribution of dividends or profit and
interest expenses 53688933.61 209821669.94
Other cash payments relating to financing activities 136065948.10 13721388.77
Total cash outflows from financing activities 189754881.71 593543058.71
Net cash flows from financing activities -90529164.91 -593543058.71
IV. Effect of exchange rate changes on cash and cash equivalents -19634496.90 3578200.75
V. Net increase in cash and cash equivalents 96543306.74 181945280.83
Add: Cash and cash equivalents at beginning of period 713624261.95 443341985.31
VI.Cash and cash equivalents at end of period 810167568.69 625287266.14
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
Semi-Annual Report
7. Consolidated Statement of Changes in Equity
Preparer: Winner Medical Co. Ltd. Current amount Unit: RMB
Semiannual 2026
Attributable to owners of the parent
Items Non-
Other equity investments
Less: Treasury Other Specialised Surplus General Undistributed controlling Total equity Share capital Preference Perpetual Capital reserves comprehensive Others shares income reserves reserves reserves profit
Others Subtotal interests
share bond
I. Balance at end of prior year 582329808.00 3389737553.59 4187537.10 -11835038.99 420212778.13 7140453466.82 11516711030.45 775870398.44 12292581428.89
Add: Changes in accounting
policies
Correction of prior period errors
Others
II. Balance at beginning of year 582329808.00 3389737553.59 4187537.10 -11835038.99 420212778.13 7140453466.82 11516711030.45 775870398.44 12292581428.89
III. Changes for the period (loss is
expressed with "-") 641120.00 -20100316.88 129449806.28
-
24342713.77 338800187.50 165548470.57 33568296.47 199116767.04
1. Total comprehensive income -24342713.77 513499129.90 489156416.13 33568296.47 522724712.60
2. Owners’ contributions and
reduction in capital 641120.00 4183418.46 129449806.28 -124625267.82 0.00 -124625267.82
(1) Ordinary shares invested by
owners 641120.00 8584596.80 9225716.80 9225716.80
(2) Capital contributions from
holders of other equity instruments
(3) Amount of share-based
payments recognised in equity -4401178.34 -4401178.34 -4401178.34
(4) Others 129449806.28 -129449806.28 -129449806.28
3. Profit distribution -174698942.40 -174698942.40 -174698942.40
(1) Appropriation to surplus
reserves
(2) Appropriation to general
reserve
(3) Distribution to owners (or
shareholders) -174698942.40 -174698942.40 -174698942.40
(4) Others
4. 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
6. Others -24283735.34 -24283735.34 -24283735.34
IV. Balance at end of period 582970928.00 3369637236.71 133637343.38 -36177752.76 420212778.13 7479253654.32 11682259501.02 809438694.91 12491698195.93
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
7. Consolidated Statement of Changes in Equity (Continued)
Preparer: Winner Medical Co. Ltd. Prior year amount Unit: RMB
Semiannual 2025
Attributable to owners of the parent
Items Non-
Other equity investments Less: Other
Share capital Capital reserves Treasury comprehensive Specialised Surplus General Undistributed
controlling Total equity
Preference Perpetual Others shares income reserves reserves reserves profit
Others Subtotal interests
share bond
I. Balance at end of prior year 582329808.00 3378540115.00 7282100.00 -2637827.10 420212778.13 6780116870.53 11151279644.56 724391558.18 11875671202.74
Add: Changes in accounting
policies
Correction of prior period errors
Others
II. Balance at beginning of year 582329808.00 3378540115.00 7282100.00 -2637827.10 420212778.13 6780116870.53 11151279644.56 724391558.18 11875671202.74
III. Changes for the period (loss is
expressed with "-") 27348053.65 -88375.00 -2122693.34 346415557.07 371729292.38 28558934.56 400288226.94
1. Total comprehensive income -2122693.34 491998009.07 489875315.73 30966895.52 520842211.25
2. Owners’ contributions and
reduction in capital 27348053.65 -88375.00 27436428.65 150000.00 27586428.65
(1) Ordinary shares invested by
owners 150000.00 150000.00
(2) Capital contributions from
holders of other equity instruments
(3) Amount of share-based
payments recognised in equity 27348053.65 27348053.65 27348053.65
(4) Others -88375.00 88375.00 88375.00
3. Profit distribution -145582452.00 -145582452.00 -2557960.96 -148140412.96
(1) Appropriation to surplus
reserves
(2) Appropriation to general
reserve
(3) Distribution to owners (or
shareholders) -145582452.00 -145582452.00 -2557960.96 -148140412.96
(4) Others
4. 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. Carryforward retained earnings
of other comprehensive income
(6) Others
(V) Specialised reserves
(1) Appropriation for the period
(2) Utilisation for the period
6. Others
IV. Balance at end of period 582329808.00 3405888168.65 7193725.00 -4760520.44 420212778.13 7126532427.60 11523008936.94 752950492.74 12275959429.68
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
Semi-Annual Report
8. Parent Company's Statement of Changes in Equity
Preparer: Winner Medical Co. Ltd. Current amount Unit: RMB
Semiannual 2026
Items Other equity investments Other
Share capital Capital reserves Less: Treasury comprehensive Specialised Surplus Undistributed Preference Perpetual shares reserves reserves profit Others Total equity
share bond Others income
I. Balance at end of
prior year 582329808.00 3388316701.42 4187537.10 411397111.21 4744962352.64 9122818436.17
Add: Changes in
accounting policies
Correction of prior
period errors
Others
II. Balance at
beginning of year 582329808.00 3388316701.42 4187537.10 411397111.21 4744962352.64 9122818436.17
III. Changes for the
period (loss is 641120.00 -20100316.88 129449806.28 -71370393.84 -220279397.00
expressed with "-")
1. Total
comprehensive 103328548.56 103328548.56
income
2. Owners’
contributions and 641120.00 4183418.46 129449806.28 -124625267.82
reduction in capital
(1) Ordinary shares
invested by owners 641120.00 8584596.80 9225716.80
(2) Capital
contributions from
holders of other
equity instruments
(3) Amount of share-
based payments -4401178.34 -4401178.34
recognised in equity
(4) Others 129449806.28 -129449806.28
3. Profit distribution -174698942.40 -174698942.40
(1) Appropriation to
surplus reserves
2. Distribution to
owners (or -174698942.40 -174698942.40
shareholders)
3. Others
4. 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
6. Others -24283735.34 -24283735.34
IV. Balance at end of
period 582970928.00 3368216384.54 133637343.38 411397111.21 4673591958.80 8902539039.17
Legal representative: Li Jianquan Financial controller: Fang Xiuyuan Accounting supervisor: Zhao Yan
8. Parent Company's Statement of Changes in Equity (Continued)
Preparer: Winner Medical Co. Ltd. Last term amount Unit: RMB
Semiannual 2025
Items Other equity investments Less: Other
Share capital Capital reserves Treasury comprehensive Special Surplus Undistributed Preference Perpetual reserve reserves profit Others Total equity
share bond Others shares income
I. Balance at end of prior
year 582329808.00 3376294181.65 7282100.00 411397111.21 4853765322.98 9216504323.84
Add: Changes in accounting
policies
Correction of prior period
errors
Others
II. Balance at beginning of
year 582329808.00 0.00 0.00 0.00 3376294181.65 7282100.00 411397111.21 4853765322.98 9216504323.84
III. Changes for the period
(loss is expressed with "-") 27348053.65 -88375.00 -14279718.97 13156709.68
1. Total comprehensive
income 131302733.03 131302733.03
2. Owners’ contributions
and reduction in capital 27348053.65 -88375.00 27436428.65
(1) Ordinary shares invested
by owners
(2) Capital contributions
from holders of other equity
instruments
(3) Amount of share-based
payments recognised in 27348053.65 27348053.65
equity
(4) Others -88375.00 88375.00
3. Profit distribution -145582452.00 -145582452.00
(1) Appropriation to surplus
reserves
2. Distribution to owners (or
shareholders) -145582452.00 -145582452.00
3. Others
4. 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
6. 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 Yan
Semi-Annual 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 cancellationand reduction of the Company’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.In June 2026 pursuant to the "Proposal on the Company's 2024 Restricted Stock Incentive Plan
(Draft) and its Summary" and other related proposals reviewed and approved at the 4th meeting
of the 4th session of the Board of Directors the 4th meeting of the 4th session of the Board of
Supervisors and the 4th Extraordinary General Meeting of Shareholders in 2024 the initial grant
of restricted shares under the incentive plan entered its first vesting period on 18 May 2026. As
of 12 June 2026 90 incentive participants subscribed for the restricted shares vested during the
first vesting period of the initial grant under the 2024 Restricted Stock Incentive Plan. The grant
price was RMB14.39 per share and 641120.00 restricted shares vested with total subscription
funds of RMB9225716.80. Following the change the Company's registered capital and share
capital were both RMB582970928.00.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 Group” ) are mainly
engaged in the research and development production and sales of medical consumables and
consumer goods. The product categories of the medical consumables segment are divided into
traditional wound care and dressing products high-end wound dressing products operating room
consumable products infection prevention products health and personal care products and other
products; the product categories of the consumer goods segment are divided into wet and dry
wipes sanitary napkins baby clothing and supplies adult apparel and other non-woven/woven
products.Domicile of the Company: F42 Building 2 Huilong Business Center Minzhi Subdistrict
Longhua District Shenzhen City.The parent of the Group is Winner Group Limited incorporated in the Cayman Islands.The financial statements were approved and authorised for issue by the board of directors on 21
August 2026.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 Group 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 and
the Group as at 30 June 2026 and the financial performance and the cash flows for the first half
of 2026 in accordance with Accounting Standards for Business Enterprises.
2. Accounting Year
The accounting year of the Group is a calendar year i.e. from 1 January to 31 December of each
year.
3. Operating Cycle
The operating cycle of the Group 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 Group 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.Semi-Annual Report
5. Methodology for Determining Materiality Standard and Selection Rationale
√Applicable ?N/A
Item 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 Non-controlling interests with closing balance
to the Company exceeding 2% of net assets
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
(1) The criterion of control
The consolidation scope of the consolidated financial statements is determined on a control basis
and includes the Company and all subsidiaries. Control means that the Company has the power
over the invested entity enjoys variable returns by participating in the relevant activities of the
invested entity and has the ability to use the power to influence the amount of returns.
(2) Consolidation procedures
The Company regards the whole enterprise group as an accounting entity and prepares
consolidated financial statements in accordance with unified accounting policies to reflect the
overall financial position operating results 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 and the accounting periods
adopted by the subsidiaries are inconsistent with those of the Company necessary adjustments
shall be made in accordance with the accounting policies and the accounting periods of the
Company when preparing the consolidated financial statements.The minority shareholders' share of the subsidiary's owners' equity current net profit or loss and
current comprehensive income shall be separately listed under the owners' equity item in the
consolidated balance sheet under the net profit item and under the total comprehensive income
item in the consolidated income statement. If the current loss shared by the minority shareholders
of the subsidiary exceeds their share in the owner's equity of the subsidiary at the beginning of
the period the minority equity shall be offset by the balance.
(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-
Semi-Annual Report
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:
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 Group’s cash on hand and deposits that can be readily withdrawn on demand.Cash equivalents are short-term 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
(1) 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 foreign currency monetary items are 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 capitalisation are treated according
to the capitalisation of borrowing costs.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.
(2) Conversion of financial statements denominated in foreign currencies
For foreign operations the Group 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 “undistributed 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. The 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.
(1) Classification of financial instrument
Based on the financial asset’s contractual cash flow characteristics and the Group’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 Group 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:
(1) The business model is aimed at collecting contract cash flows;
Semi-Annual Report
(2) The contract cash flow is only the payment of the principal and interest based on the
outstanding principal amount.The Group 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:
(1) The business model is aimed at collecting contract cash flows and the sale of such financial
assets;
(2) The contract cash flow is only the payment of the principal and interest based on the
outstanding principal amount.For investments in equity instruments not held for trading the Group may at initial recognition
irrevocably designate them as financial assets at fair value through other comprehensive income
(equity instruments). The designation is made on a single investment basis and the related
investments meet the definition of an equity instrument from an issuer's perspective.Other than the financial assets measured at amortised cost and those measured at fair value
through other comprehensive income as described above the Group 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 Group 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.Financial liabilities are classified at the initial recognition as: financial liabilities measured at fair
value of which changes are recorded in profit or loss and financial liabilities measured at the
amortised cost.Financial liabilities that meet one of the following conditions may be designated at the initial
recognition as the financial liabilities measured at fair value of which changes are recorded in
profit or loss.
(1) This designation eliminates or significantly reduces accounting mismatches;
(2) 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;
(3) The financial liability contains embedded derivatives that need to be split separately.
(2) Recognition basis and measurement method of financial instruments
(2.1) Financial assets measured at amortized cost
Financial assets measured at amortised cost include notes receivable accounts receivable other
receivables long-term receivables debt investments etc. They are initially recognised at fair
value with related transaction costs included in the initial carrying amount. Accounts receivable
that do not contain a significant financing component as well as for which the Group has applied
the practical expedient of not adjusting the effect of a significant financing component due
within one year are initially recognised at the contractual transaction price. Interest calculated
using the effective interest method during the holding period is recognised in profit or loss for
the current period. Upon collection or disposal the difference between the proceeds received and
the carrying amount of the financial asset is recognised in profit or loss for the current period.
(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 financial assets held for trading
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.
(2.5) Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include financial liabilities held
for trading and derivative financial liabilities 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. 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 long-term 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 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.
(3) Basis for recognition and method of measurement for derecognition of financial assets and
transfer of financial assets
The Group derecognises a financial asset when any of the following conditions is met:
(1) Termination of the contractual right to collect the cash flow of financial assets;
(2) The financial assets have been transferred and almost all the risks and remuneration in its
ownership have been transferred to the transferee;
(3) The financial asset has been transferred and although the Group has neither transferred nor
retained substantially all the risks and rewards of ownership of the financial asset it has not
retained control over the financial asset.Semi-Annual Report
If the Group modifies or renegotiates a contract with a counterparty and the modification
constitutes a substantial modification the original financial asset is derecognised and a new
financial asset is recognised in accordance with the modified terms.In the event of a financial asset transfer if almost all the risks and remuneration in the ownership
of the financial asset are retained the recognition of the financial asset will not be terminated.The principle of substance over form is adopted when judging whether the transfer of financial
assets meets the above conditions for derecognition of financial assets.The Company divides the transfer of financial assets into the whole transfer of financial assets
and the partial transfer of financial assets. If the overall transfer of the financial asset meets the
derecognition conditions the difference between the following two amounts shall be recorded
into the profit or loss:
(1) The carrying amount of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the cumulative amount of the
fair value changes originally included in owner’s equity directly (where the financial asset
involved in the transfer is measured at fair value and the change is recorded in other
comprehensive income (debt instrument)).If the partial transfer of the financial asset meets the derecognition conditions the carrying
amount of the overall transferred financial asset is distributed between the derecognised and non-
derecognised part according to the relative fair value and the difference between the following
two amounts is included in profit or loss:
(1) The carrying amount of derecognised part;
(2) Sum of the consideration of the derecognised part and the amount of corresponding
derecognised part in the total fair value changes originally included in owner’s equity directly
(where the financial asset involved in the transfer is measured at fair value and the change is
recorded in other comprehensive income (debt instrument)).If the transfer of the financial asset does not meet the conditions of derecognition such financial
asset shall continue to be recognised and the consideration received shall be recognised as a
financial liability.
(4) 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 Group 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 Group 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.
(5) 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 Group 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.
(6) Testing and accounting methods for impairment of financial instruments
The Group 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 Group 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.For lease receivables arising from transactions defined in Accounting Standards for Business
Enterprises No. 21 - Leases the Group 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 Group assesses the
changes in credit risk on the financial instruments since initial recognition at each balance sheet
date.The Group 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
Group 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 Group 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 Group 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 Group 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 Group assumes that the credit risk has not
increased significantly since initial recognition.For financial assets (debt instruments) measured at fair value and whose changes are included in
other comprehensive income the loss provision is recognised in other comprehensive income
Semi-Annual Report
and the impairment loss or gain is included in the profit or loss without reducing the financial
asset's carrying amount shown on the balance sheet.If there is objective evidence that a receivable has been credit-impaired the Group 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
Group 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 Group recognises a loss allowance
based on lifetime ECLs. Based on the credit risk characteristics of notes receivable and
receivable financing it is divided into different portfolios:
Item Basis for grouping and method of provision for bad debts
Notes receivable:
If the acceptor is a bank with higher credit rating (such as large state-owned
commercial banks and listed joint-stock commercial banks) no provision for bad
Bank acceptance bills debts shall be made; if the acceptor is another bank or financial company the
expected credit loss is analyzed based on historical information and judged whether
it is necessary to make provision for bad debts.Commercial acceptance If the acceptor is a non-financial institution its division is the same as that of
bills accounts receivable (if accounts receivable are transferred to notes receivables the age of accounts is calculated continuously).Amounts receivable
financing
Bank acceptance bills If the acceptor is a bank with a higher credit rating no provision for bad debts is made.The Group’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:
Item Group Basis
Accounts receivable
Receivables from related parties No credit risk Unless there is objective evidence that they cannot be
within the scope of consolidation group recovered no provision for bad debts will be made for amounts within the scope of consolidation
Due from other clients Aging group The accounts receivable are grouped based on their aging as the credit risk characteristic.Other receivables
Receivables such as export tax The accounts receivable are grouped based on their
rebates and housing funds have no No credit risk group nature as the credit risk characteristic (mainly credit risk including export tax rebates and housing funds).Other receivables from related
parties within the scope of No credit risk
Unless there is objective evidence that they cannot be
group recovered no provision for bad debts will be made for consolidation amounts within the scope of consolidation
Balance The accounts receivable are grouped based on their Deposits and guarantee deposits proportion group nature as the credit risk characteristic (mainly including deposits and guarantee deposits)
Other receivables Aging group The accounts receivable are grouped based on their aging as the credit risk characteristic.Long-term receivables:
Finance lease receivables Balance The finance lease receivables are grouped based on proportion group their nature of the receivables as the credit risk
characteristic
Balance The accounts receivable are grouped based on their Deposits and guarantee deposits proportion group nature as the credit risk characteristic (mainly including deposits and guarantee deposits)
Provision for doubtful accounts for aging portfolio:
Aging Provision ratio for accounts Provision ratio for other receivables receivables (%) (%)
Within 1 year inclusive 5.00 5.00
1 to 2 years 10.00 10.00
2 to 3 years 30.00 30.00
3 to 4 years 50.00 50.00
4 to 5 years 80.00 80.00
Over 5 years 100.00 100.00
Bad debt provisions for commercial acceptance bills receivable are accrued according to the
expected credit loss rate of accounts receivable mentioned earlier with the aging start date of
commercial acceptance bills corresponding to that of the accounts receivable.The Group directly reduces the gross carrying amount of a financial asset when the Group has no
reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
12. Notes Receivable
Please refer to the Note "V. 11 Financial Instruments".
13. Accounts Receivable
Please refer to the Note "V. 11 Financial Instruments".
14. Receivables Financing
Please refer to the Note "V. 11 Financial Instruments".
15. Other Receivables
Recognition method and accounting treatment method of the expected credit loss of other
receivables
For the measurement of impairment loss of other receivables other than accounts receivable and
notes receivable (including other receivables long-term receivables etc.) it shall be treated by
referring to the "V. 11. Financial instruments 6) Test method and accounting treatment method
of financial assets (excluding receivables) impairment".Semi-Annual Report
16. Contract Assets
The Group 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 Group 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 Group's unconditional (only conditional on the passage of time) right to consideration
from customers is presented separately as receivables. The Group presents its obligation to
transfer goods or services to a customer for which the Group has received consideration or the
Group has a right to an amount of consideration that is unconditional (i.e. a receivable) from the
customer as a contract liability. The contractual assets and contractual liabilities under the same
contract are listed in the net amount.
17. Inventories
(1) Classification 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.
(2) 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.
(3) Inventory system
The perpetual inventory system is adopted.
(4) 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.
(5) 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 Note 41. Leases (2) Accounting treatment for leases as a lessor 2) Accounting
treatment for finance leases for details.
22. Long-Term Equity Investments
Long-term equity investments include equity investments in subsidiaries joint ventures and
associates.
(1) 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 investee.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.
(2) Determination of initial investment cost
1) 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.
2) Long-term equity investments not arising from a business combination
Semi-Annual Report
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.
(3) Subsequent measurement and approach for the determination of profit and loss
1) 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.
2) 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’s equity 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.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 Group’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 Group’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 Group’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 Group resumes recognition of its profit-sharing amount after
offsetting previously unrecognised loss allocations.
3) 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.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 mode of investment properties
Cost method
Depreciation or amortisation method
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 Group
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 Group’s fixed
Semi-Annual Report
assets is applied to buildings for lease.
24. Fixed Assets
(1) Recognition conditions
Recognition and initial measurement of fixed assets
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
Category Depreciation Depreciation Residual rate Annual method period depreciation rate
Buildings Straight-line depreciation 10-40 years 0.00%-10.00% 2.25%-10.00%
Machinery Straight-line depreciation 2-15 years 5.00%-10.00% 6.00%-47.50%
Vehicles Straight-line depreciation 3-10 years 5.00%-10.00% 9.00%-31.67%
Electronic equipment office Straight-line
equipment and others depreciation 2-10 years 5.00%-10.00% 9.00%-47.5%
Land ownership Others N/A N/A N/A
No depreciation is provided for land
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.The criteria and timing for carrying forward construction in progress of the Company to fixed
assets are as follows:
Class Criteria and timing for transfer to fixed assets
(1) The main construction project and supporting projects are substantially
completed. (2) The construction project meets the scheduled design
requirements and undergoes inspection and acceptance by survey design
Buildings construction supervision fire protection and quality supervision units. (3) The construction project reaches the intended usable state. If final accounts
for completion are pending it will be transferred to fixed assets at an
estimated value based on the actual project cost from the date of achieving
usability.
(1) Relevant equipment and supporting facilities are installed. (2) Equipment
Machinery operates normally and stably after debugging. (3) Production equipment consistently yields qualified products. (4) Equipment is accepted by asset
managers and users post-inspection.
(1) The relevant equipment and supporting facilities have been completely
Electronic equipment office installed; (2) the equipment has been debugged to reach the working condition
equipment and others for intended use; (3) the equipment has been formally accepted by both asset
management personnel and operational users.
26. Borrowing Costs
(1) Recognition principle of capitalisation 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.
(2) 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 interest-bearing 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.Semi-Annual Report
(3) Suspension period of capitalisation
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.
(4) 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
(1) Valuation of intangible assets
1) 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.
2) 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.
(2) Estimation of useful lives for intangible assets with finite useful lives
Item 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
Trademarks 5-10 years The trademark use right certificate specifies the benefit period.Patents 5-10 years Benefit period specified in the certificate of patent use
Royalty 3 Contractual useful life
Client relations 10 Management expects the useful life
(3) Determination basis for intangible assets with indefinite useful lives and procedures for
reviewing their useful lives
During the Reporting Period the Group had no intangible assets with indefinite useful lives.
(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.
1) 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.
2) 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:
(1) the technical feasibility of completing the intangible asset so that it will be available for use
or sale;
Semi-Annual Report
(2) the intention to complete the intangible asset and use or sell it;
(3) 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);
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset; and
(5) 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:
Item Amortisation period
Decoration expenses 1-10 years
Decoration expenses on leased
assets 1-6 years
Others 2-5 years
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 Group 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.
1) Accounting for short-term employee benefits
Short-term employee benefits actually incurred 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 Group 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 Group.The employee benefit expenses incurred by the Group 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
1) Defined contribution plan
The Group 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 Group 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.Semi-Annual Report
2) Defined benefit plan
The Group 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 formed from the present value of the defined benefit plan obligation
subtracted by the fair value of the defined benefit plan assets is recognised as a net liability or net
asset of the defined benefit plan. For defined benefit plans in a surplus position the Group
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.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 cumul ative 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 Group 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 Group 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.
(1) The obligation is a present obligation of the Group;
(2) The fulfilment of the obligation is likely to result in an outflow of economic benefits from the
Group;
(3) The amount of the obligation can be reliably measured.
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:
(1) For contingent matters involving a single item the best estimate shall be determined based on
the most likely outcome;
(2) 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 prov ision 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 Group 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 estimat
e the carrying amount shall be adjusted to the current best estimate.
35. Share-Based Payment
The Group’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 Group’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 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 Group 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.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 Group 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. Preferred Stock Perpetual Bonds and Other Financial Instruments
37. Revenue
Disclose the accounting policies adopted for revenue recognition and measurement by business
type
Revenue from contracts with customers is recognised when the Group has fulfilled its
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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 Group 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 Group’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 Group 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 Group
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 non-cash consideration consideration payable to
customers and other factors. The Group 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 Group 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:
(1) The customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs;
(2) The customer can control the goods under construction during the Group’s performance;
(3) The goods produced by the Group during the performance are of irreplaceable use and the
Group has an enforceable right to payment for performance completed to date.For the performance obligations performed over time the Group 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 Group 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 Group 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 Group can
reasonably measure the progress towards the complete satisfaction of the performance obligation.For performance obligations performed at a point in time the Group 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 Group considers
the following indications:
(1) The Group 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;
(2) The Group has transferred the legal ownership of the goods to the customer that is the
customer has the legal ownership of the goods;
(3) The Group has physically transferred the goods to the customer that is the customer has
physically possessed the goods;
(4) The Group 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;
(5) The customer has accepted the goods or services etc.
The Group 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 Group 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 Group 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:
(1) 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);
(2) 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);
(3) 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);
(4) E-commerce business (B2B): the revenue is recognised in the settlement cycle at the point in
time when control of the product is transferred;
(5) 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);
(6) 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 Group’s contracts with customers including arrangements of sales rebates result in
variable consideration. The Group 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.Semi-Annual Report
Additional purchase options
The Group 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 Group
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 stand-alone 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 Group recognises the revenue in the amount of consideration
to which the Group 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 Group re-estimates the future sales return and
remeasures the asset and liability above.Warranties provisions
The Group 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 agreed-upon specifications the Group
accounts for the warranty in accordance with "Note V.34 Provisions".Businesses of the same category under different operating models involve varying revenue
recognition approaches and measurement methods.
38. Contract Costs
39. Government Grants
(1) Types of government grants
Government grants are transfer of monetary assets or non-monetary assets from the government
to the Group 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 Group 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.The Group’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 Group to classify the government
grants as related to assets or related to income is as follows: except that the Group designates its
purpose as related to assets it will be included in profit or loss.
(2) Timing of recognition
Government grants are recognised when all attaching conditions will be complied with and the
grants will be received.
(3) 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 Group shall be recorded into other income; those not relating to the daily activities of the
Group 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
Group shall be recorded into other income; those not relating to the daily activities of the Group
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 Group shall be recorded into other
income; those not relating to the daily activities of the Group 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 Group 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:
(1) 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;
(2) 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:
(1) 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
Semi-Annual Report
affects neither the accounting profit nor taxable profit or loss and does not give rise to equal
taxable and deductible temporary differences;
(2) 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 Group 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 Group 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) Accounting treatment for leases as a lessee
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 Group recognises lease
liabilities and right-of-use assets except for short-term leases and leases of low-value assets.The Group 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 Group 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.As lessee
(1) Right-of-use assets
At the commencement date of the lease the Group 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;
(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 Group 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 Group. If the Group is reasonably certain that the
ownership of the underlying assets will be transferred to the Group at the end of the lease terms
the Group depreciates the assets from the commencement date to the end of the useful lives of
the assets. Otherwise the Group 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 Group determines whether the right-of-use asset has been impaired in accordance with the
principles described in "Note V.30 Impairment of long-term assets" and accounts for the
impairment losses identified.
(2) Lease liabilities
At the commencement date of the lease the Group 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 Group; and
(5) payments of penalties for termination of a lease if the lease term reflects the Group
exercising the option to terminate the lease.The Group regards the interest rate implicit in the lease as discount rate; if that rate cannot be
reasonably determined the Group uses the incremental borrowing rate. The Group 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 Group 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 Group 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 Group 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
Group 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.Semi-Annual Report
(3) Short-term leases and leases of low-value assets
If the Group 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 Group 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 Group 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
(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 Group 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 Group 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 Group makes a corresponding adjustment to the
right-of-use asset for all other lease modifications that result in remeasurement of lease liabilities.
(2) Accounting treatment for leases as a lessor
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 Group recognises finance lease receivable and
derecognises finance lease assets. The Group 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 Group 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 Group 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 Group 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 stockissuance shall be offset according to the difference and debited to the “Capital surplus – Sharecapital premium”. The portion of the repurchase price exceeding the above offset of “Sharecapital” 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.
(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 Group 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) Judgements
In the process of applying the Group’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 Group’s business
model for managing financial assets. When determining the business model the Group 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 Group needs to analyse and judge the reason timing
frequency and value of the sale before the maturity date of the financial assets.
2) 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.Semi-Annual Report
Impairment of financial assets
The Group uses the expected credit loss model to assess the impairment of financial instruments.The Group 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 Group 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 Group 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 in 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 Group 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.Loyalty points
The Group 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 Group 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 in customer demands the future trend of the market and other
factors. The Group 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 re-evaluation results.Impairment of non-current assets other than financial assets (other than goodwill)
The Group 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 payments
The Group’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 Group 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 Group writes down obsolete and slow-moving inventories and inventories whose cost is
higher than the net realisable value. At each balance sheet date the Group 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 Group 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 Group 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. Further details are included in "Note V.30".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 Group 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 Group 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 Group 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 Group 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 Group 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 Group 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.Semi-Annual Report
43. Changes in Material Accounting Policies and Significant Estimates
(1) Changes in material accounting policies
□Applicable √N/A
Content and reasons of changes in accounting Important affected report item
policies name Amount of impact
On 5 December 2025 the Ministry of Finance
issued the "Interpretation of Accounting
Standards for Business Enterprises No. 19" (Cai None —
Kuai [2025] No. 32)
On 4 June 2026 the Ministry of Finance issued
the "Interpretation of Accounting Standards for
Business Enterprises No. 20" (Cai Kuai [2026] None —
No. 7)
(2) Changes in significant estimates
□Applicable √N/A
(3) Adjustment of relevant items in financial statements at the beginning of first implementation
year as a result of first implementation of new accounting standards from 2026
□Applicable √N/A
44. Others
VI. Taxation
1. Main Tax Categories and Tax Rates
Category of tax Taxation basis Tax rate
Output VAT is calculated based on product sales
Value-added tax and service provided pursuant to tax laws. The Note 1*
(VAT) basis for VAT payable is to deduct input VAT 13% 9% 6% 3% 1% 0%
from the output VAT for the period.Urban maintenance
and construction tax Actual paid turnover tax 7% 5%
Corporate income Levied by taxable profit 30% 27% 25.8% 25% 24% 21% tax (CIT) 20% 17% 16.5% 15%
Education surcharge Actual paid turnover tax 3%
Local education
surcharge Actual paid turnover tax 2%
Note 1*: Certain stores of Shenzhen Purcotton Technology Co. Ltd. ("Shenzhen Purcotton")
Guangzhou Purcotton Technology Co. Ltd. ("Guangzhou Purcotton") Beijing Purcotton
Technology Co. Ltd. ("Beijing Purcotton") Shanghai Purcotton Technology Co. Ltd.("Shanghai Purcotton") and Wuhan Purcotton Ltd. ("Wuhan Purcotton") are small-scale
taxpayers subject to VAT levied at a rate of 3%. The VAT rate is 13% for non-small-scale
taxpayers. 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%.The Announcement shall be in effect until 31 December
2027.
The sales of goods by the Group's subsidiaries as general taxpayers are subject to a VAT rate of
13%. The Company and some of its subsidiaries have the right to import and export and the
VAT on export products is subject to the export tax rebate policy of "exemption credit and
refund".VAT on income from consulting services provided by the Group 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 (Huanggang) Winner
Medical (Tianmen) and 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%.If there are taxpayers with different enterprise income tax rates the disclosure statement shall
present
Name of taxpayers Income tax rates
Winner Medical Co. Ltd. 15%Winner Medical (Huanggang) Co. Ltd. (hereinafter referred to as “Winner Medical(Huanggang)”) 15%Winner Medical (Jingmen) Co. Ltd. (hereinafter referred to as “Winner Medical(Jingmen)”) 15%Winner Medical (Tianmen) Co. Ltd. (hereinafter referred to as “Winner Medical(Tianmen)”) 15%Winner Medical (Chongyang) Co. Ltd. (hereinafter referred to as “Winner Medical
(Chongyang)”) 15%
Semi-Annual Report
Name of taxpayers Income tax rates
Winner Medical (Jiayu) Co. Ltd. (hereinafter referred to as “Winner Medical (Jiayu)”) 15%Yichang Winner Medical Textile Co. Ltd. (hereinafter referred to as “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%
Winner Medical Malaysia Sdn. Bhd. (“Winner Medical Malaysia”) 24%
Winner Guilin Latex Co. Ltd. (“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 (Jinzhou) 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%
Winner Medical Technology (Foshan) Co. Ltd. (“Winner Medical (Foshan)”) 20%
Nature Health Trading (Hong Kong) Co. Ltd. (“Nature Health Trading”) 16.50%
Shenzhen Purcotton 25%
Beijing Purcotton 25%
Guangzhou Purcotton 25%
Shanghai Purcotton 25%
Shenzhen Qianhai Purcotton E-Commerce Co. Ltd. (“Qianhai Purcotton”) 25%
Shenzhen Purunderwear Sci-Tech Innovation Co. Ltd. (“Purunderwear”) 20%
Huanggang Purcotton Ltd. (“Huanggang Purcotton”) 25%
Wuhan Purcotton 25%
Hong Kong Purcotton Ltd. (“Hong Kong Purcotton”) 16.50%
Purcotton Agricultural Technology (Wuhan) Co. Ltd. (“Purcotton Agricultural”) 20%
PURCOTTON (VN) COMPANY LTD (“Vietnam Purcotton”) 15%
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%
Name of taxpayers Income tax rates
LONGTERM MEDICAL S.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%
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%
Invenio Alternate Care Solutions LLC (“IACS”) Federal 21%
ETI Services Inc. (“ETI Services”) Federal 21%
Global Resources (Vietnam) Group Limited Company (“GRI VN”) 20%
Shenzhen Jinliang Life Services Co. Ltd. (“Jinliang Services”) 20%
Winner Medical (VN) (“Vietnam Winner”) 15%
Winner Digital Technology (Shenzhen) Co. Ltd. (“Winner Digital”) 20%
Nature Health Development International Co. Ltd. (“Nature Health International”) 16.50%
Semi-Annual Report
2. Tax Preference
Name of
taxpayer Tax category Tax preference
Tax
rates Certificate No. Certificate date
Winner Medical
Co. Ltd. 15% GR202444206145 26 December 2024
Winner Medical
(Huanggang) 15% GR202542000284 11 November 2025
Winner Medical
(Jingmen) 15% GR202442001714 04 December 2024 According to the second
Winner Medical paragraph of Article 28 of
(Tianmen) 15% GR202442003221 16 November 2024 the Corporate Income Tax
Winner Medical Law of the People's
(Chongyang) Republic of China 15% GR202442001824 15 November 2024
Winner Medical Corporate stipulates with respect to
(Jiayu) income tax a high-tech enterprise that 15% GR202442004304 16 December 2024
is specifically supported
Winner Medical by the State the tax on its
(Wuhan) 15% GR202542000765 08 December 2025 income shall be levied at a
Guilin Latex reduced rate of 15 15% GR202345000323 04 December 2023
Zhejiang percent.Longterm 15% GR202333003226 08 December 2023
Winner Medical
(Hunan) 15% GR202543002877 08 December 2025
GRI METC 15% GR202533006896 19 December 2025
GRI Wuhu 15% GR202534004988 08 December 2025
Winner Medical 20% N/A N/A
Hubei Zhongfu 20% N/A N/A
Jinliang Services According to the Announcement of the 20% N/A N/A
Winner Digital Ministry of Finance and 20% N/A N/A
Purunderwear the State Taxation 20% N/A N/A
Purcotton Administration on
Agricultural Relevant Tax and Fee 20% N/A N/A
Policies with Respect to
PureH2B Further Supporting the 20% N/A N/A
Winner Medical Development of Small
(Foshan) 20% N/A N/A
Corporate and Micro Enterprises and
Hangzhou income tax Individually-Owned
Shengyi Businesses (MOF STA 20% N/A N/A
Zhejiang Announcement [2023]
Honglan No. 12) the policy of 20% N/A N/A
small and low-profit
Xi'an Longtemu enterprises calculating the 20% N/A N/A
Deqing Longterm taxable income at 25% 20% N/A N/A
Ruian Medical and paying corporate
Device income tax at a rate of 20% N/A N/A
GRI Nanling 20% is extended to 31 December 2027. 20% N/A N/A
Alleset China 20% N/A N/A
GRI PM 20% N/A N/A
3. Others
VII. Notes to the Consolidated Financial Statements
1. Currency Fund
Unit: RMB
Item Closing balance Opening balance
Cash on hand 185259.18 98223.24
Cash at banks 1752300782.98 1541265623.54
Other currency funds 42903077.24 52625473.14
Total 1795389119.40 1593989319.92
Where: Total amount deposited abroad 190836227.07 73178038.54
Other description
Wherein the breakdown of currency funds that are restricted in use due to mortgages pledges or
freezes restricted in withdrawal due to centralized management of funds as well as those placed
outside China with restrictions on repatriation of funds is as follows:
Item Total closing balance Closing balance of the previous year
Guarantee deposit for bank acceptance bill
(Note 1) 14716083.93 20773341.08
Letter of credit (Note 2) 1320.00 101320.00
Performance bond* 3 3867052.61 3962873.80
Balance of other restricted currency funds
*4 5954434.92 8429676.46
Total 24538891.46 33267211.34
*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) and Junjian
Medical 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.*4 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.Semi-Annual Report
2. Financial Assets Held for Trading
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 3259490059.08 2825378695.56
Including:
Including: Wealth management products issued by banks 2345705565.93 1818988678.23
Trust plan 913784493.15 1006390017.33
Including:
Total 3259490059.08 2825378695.56
Other description:
3. Derivative Financial Assets
Unit: RMB
Item Closing balance Opening balance
Other description:
4. Notes Receivable
(1) Classified presentation of notes receivable
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 14710897.33 39357178.51
Total 14710897.33 39357178.51
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Impairment Impairment
Category Book balance allowance Book balance Carrying allowance Carrying
amount amount
Amount Proportion Amount Provision Amount Proportion Amount Provision ratio ratio
Including:
Including:
Where the impairment allowances are made based on the general ECL model:
?Applicable √N/A
(3) Provision for bad debts accrued recovered or reversed
Provision for bad debts in current period:
Unit: RMB
Changes for the year
Category Opening balance Closing
Provision Recovered or balance reversed 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
Item Pledged notes receivable at end of year
(5) Notes receivable endorsed or discounted and not yet expired at the balance sheet date
Unit: RMB
Item Derecognised Not derecognised
Bank acceptance bills 6115168.48
Total 6115168.48
(6) Notes receivable actually written off
Unit: RMB
Item Amount written off
Write-off of important notes receivable:
Unit: RMB
Entity Nature of notes Amount Reasons for Write-off Whether due to/from related
name receivable written off write-off procedures performed party transactions
Description of write-off notes receivable:
Semi-Annual Report
5. Accounts Receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 1155354197.49 1078434515.13
1 to 2 years 23423463.72 13195106.36
2 to 3 years 6055091.22 4839980.27
Over 3 years 16053933.83 17192544.41
3 to 4 years 5415049.32 5167731.89
4 to 5 years 6677165.54 7176361.56
Over 5 years 3961718.97 4848450.96
Total 1200886686.26 1113662146.17
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts
Amount Proportion
Carrying amount Carrying amount
(%) Amount
Provision Proportion
ratio (%) Amount (%) Amount
Provision
ratio (%)
Accounts
receivable
with
provision
for bad
debts 8804479.93 0.73% 8204479.93 93.19% 600000.00 5762385.03 0.52% 5762385.03 100.00% 0.00
made on
an
individual
basis
Including:
Accounts
receivable
with
provision
for bad 1192082206.33 99.27% 70905976.24 5.95% 1121176230.09 1107899761.14 99.48% 67026212.64 6.05% 1040873548.50
debts
made on a
collective
basis
Including:
Provision
for bad
debts
made on a 1192082206.33 99.27% 70905976.24 5.95% 1121176230.09 1107899761.14 99.48% 67026212.64 6.05% 1040873548.50
collective
basis:
Total 1200886686.26 100.00% 79110456.17 6.59% 1121776230.09 1113662146.17 100.00% 72788597.67 6.54% 1040873548.50
Provision for bad debts made on an individual basis:
Unit: RMB
Opening balance Closing balance
Name
Book balance Provision for bad debts Book balance
Provision for Provision ratio Reasons for
bad debts (%) provision
Others 5762385.03 5762385.03 8804479.93 8204479.93 93.19% Expected to be irrecoverable
Total 5762385.03 5762385.03 8804479.93 8204479.93
Provision for bad debts of aging group:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 1151856469.84 57592780.16 5.00%
1 to 2 years 23075865.66 2307586.57 10.00%
2 to 3 years 5505812.30 1651743.69 30.00%
3 to 4 years 2390699.32 1195349.66 50.00%
4 to 5 years 5474215.24 4379372.19 80.00%
Over 5 years 3779143.97 3779143.97 100.00%
Total 1192082206.33 70905976.24
Description of the basis for determining provision for bad debts on a collective basis:
Where the impairment allowances 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
Amount of change in current period
Category Opening Closing balance Provision Recovered or reversed Write-off Others
balance
Provision for bad
debts of accounts 72788597.67 16144918.96 8693382.74 2175.00 -1127502.72 79110456.17
receivable
Total 72788597.67 16144918.96 8693382.74 2175.00 -1127502.72 79110456.17
Semi-Annual Report
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Unit name Amount recovered Reasons Recovery
The rationale behind determining the original
or reversed way provision ratio for bad debts and its justification
(4) Accounts receivable actually written off
Unit: RMB
Item Amount written off
Accounts receivable actually written off 2175.00
Write-off of significant accounts receivable:
Unit: RMB
Unit name Nature of Amount Reasons for
Write-off Whether the payments arise
accounts written off write-off procedures performed from connected 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
Unit Closing balance
Closing Closing balance Proportion of total
of accounts balance of of accounts closing balance of
debt provision for
name accounts receivable and receivable contract receivable and accounts receivable assets contract assets and contract assets impairment provision for contract assets
First 179979923.04 179979923.04 14.99% 8998996.16
Second 36027772.80 36027772.80 3.00% 1821909.66
Third 20657630.69 20657630.69 1.72% 1072998.20
Fourth 20338708.90 20338708.90 1.69% 1092497.30
Fifth 19341265.26 19341265.26 1.61% 967063.26
Total 276345300.69 276345300.69 23.01% 13953464.58
6. Contract Assets
(1) Contract assets
Unit: RMB
Closing balance Opening balance
Item
Book balance Provision for Carrying bad debts amount Book balance
Provision for Carrying
bad debts amount
(2) Amount and reasons for significant changes in carrying amount in the reporting period
Unit: RMB
Item Amount of change Reason for change
(3) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance
Provision for bad Provision for bad
debts Book balance Carrying debts Carrying
amount
Amount Proportion Amount Provision Amount Proportion Amount Provision
amount
(%) ratio (%) (%) ratio (%)
Including:
Including:
Category numbers of provision for bad debts by combination: 0
Provision for bad debts is made based on the general expected credit loss (ECL) model:
?Applicable √N/A
(4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Item Accrual Recovery or reversal Transfer/Write-off Reasons
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Entity name Amount recovered Reasons for Recovery
The basis for determining the original
or reversed reversal method provision ratio for bad debts and its reasonableness
Other description
(5) Contract assets actually written off
Unit: RMB
Item Amount written off
Semi-Annual Report
Write-off of significant contract assets:
Unit: RMB
Entity Nature of Amount Reasons for Write-off Whether due to/from related
name contract assets written off write-off procedures performed party transactions
Description of write-off of contract assets:
Other description:
7. Receivables Financing
(1) Classified presentation of receivables financing
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 56001074.45 48201306.98
Total 56001074.45 48201306.98
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance
Provision for bad
Carrying debts Carrying
Amount Proportion
amount
Amount Provision Amount Proportion Amount Provision
amount
(%) ratio (%) (%) ratio (%)
Including:
Including:
Provision for bad debts is made based on the general expected credit loss (ECL) model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts Total
12-month ECLs Lifetime ECLs (not yet Lifetime ECLs (credit-credit-impaired) impaired)
Opening balance
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
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or Transfer/Write-reversal off Other changes
balance
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Amount The basis for determining the original
Entity name recovered or Reasons for Recovery reversal method provision ratio for bad debts and its reversed reasonableness
Other description:
(4) Receivables financing pledged
Unit: RMB
Item Pledged amount at the end of the period
(5) Receivables financing endorsed or discounted and not yet expired at the balance sheet date
Unit: RMB
Item Amount with recognition Amount with recognition not terminated at the end of the period terminated at the end of the period
Bank acceptance bills 34531845.46 0.00
Total 34531845.46 0.00
(6) Receivables financing actually written off
Unit: RMB
Item Amount written off
Write-off of significant receivables financing
Unit: RMB
Entity Nature of Write-off
name receivables
Amount Reasons for Whether due to/from related
financing written off write-off
procedures
performed party transactions
Description of write-off of receivables financing:
(7) Changes in receivables financing and fair value movements during the period
(8) Other description
Semi-Annual Report
8. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Interest receivable 0.00
Dividends receivable 0.00
Other receivables 213272163.77 204468498.11
Total 213272163.77 204468498.11
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Item Closing balance Opening balance
Total 0.00
2) Significant overdue interest
Unit: RMB
Borrower Closing balance Overdue time Overdue reason Whether there is impairment and its judgment basis
Other description:
3) Disclosure by bad debt provision accrual method
?Applicable √N/A
4) Provision for bad debts accrued reversed or recovered
Unit: RMB
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or Disposal or balance reversal write-off Other changes
Significant recovery or reversal of provision for bad debts:
Unit: RMB
Unit name Amount recovered Reasons for Method of
The basis for determining the original
or reversed reversal recovery provision ratio for bad debts and its reasonableness
Other description
5) Interest receivable actually written off
Unit: RMB
Item Amount written off
Significant write-off of interest receivable:
Unit: RMB
Nature of Amount Reasons for Write-off Unit name interest Whether caused by related-
receivable written off write-off
procedures
performed party transactions
Notes on write-off interest receivable:
Other description:
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or invested unit) Closing balance Opening balance
Total 0.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Project (or invested unit) Closing Aging Reason for non- Whether there is impairment and balance recovery its judgment basis
3) Disclosure by bad debt provision accrual method
?Applicable √N/A
4) Provision for bad debts accrued recovered or reversed
Unit: RMB
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or Transfer/Writ Other changes balance reversal e-off
Semi-Annual Report
Significant recovery or reversal of provision for bad debts:
Unit: RMB
Amount
Entity name recovered or Reasons for Recovery The basis for determining the original provision
reversed reversal method ratio for bad debts and its reasonableness
Other description:
5) Dividends receivable actually written off
Unit: RMB
Item Amount written off
Significant write-off of dividends receivable
Unit: RMB
Nature of Write-off
Entity name dividends Amount Reasons for Whether due to/from related
receivable written off write-off
procedures
performed party transactions
Notes on write-off of dividends receivable:
Other description:
(3) Other receivables
1) Classification by nature
Unit: RMB
Nature Closing balance Opening balance
Compensation for investment and
construction project of Winner 215155320.00 215155320.00
Medical (Heyuan)
Deposits and guarantee deposits 81155005.40 71788017.49
Amounts due from related parties
outside the scope of consolidation 4010984.13 4010984.13
of the Group
Employee pretty cash 2997435.96 2871481.77
Others 30457112.58 31531589.37
Total 333775858.07 325357392.76
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 63013837.83 60807073.86
1 to 2 years 11042501.24 12006371.78
2 to 3 years 8366163.09 7913808.36
Over 3 years 251353355.91 244630138.76
3 to 4 years 7156079.64 3740683.54
4 to 5 years 3682659.76 3397327.98
Over 5 years 240514616.51 237492127.24
Total 333775858.07 325357392.76
3) Disclosure by bad debt provision accrual method
√Applicable ?N/A
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts Carrying Carrying
Amount Proportion Amount Provision amount Proportion (%) ratio (%) Amount (%) Amount
Provision amount
ratio (%)
Provision for
bad debts
made on an 217155320.00 65.06% 109577660.00 50.46% 107577660.00 217564878.81 66.87% 109987218.81 50.55% 107577660.00
individual
basis
Including:
Provision for
bad debts
made on a 116620538.07 34.94% 10926034.30 9.37% 105694503.77 107792513.95 33.13% 10901675.84 10.11% 96890838.11
collective
basis
Including:
Aging group 32700404.95 9.80% 6868283.96 21.00% 25832120.99 33638967.74 10.34% 7332254.92 21.80% 26306712.82
Deposit and
guarantee 81155005.40 24.31% 4057750.34 5.00% 77097255.06 71388418.49 21.94% 3569420.92 5.00% 67818997.57
deposit
No credit risk
group 2765127.72 0.83% 2765127.72 2765127.72 0.85% 2765127.72
Total 333775858.07 100.00% 120503694.30 36.10% 213272163.77 325357392.76 100.00% 120888894.65 37.16% 204468498.11
Semi-Annual Report
Provision for bad debts made on an individual basis:
Unit: RMB
Opening balance Closing balance
Name
Book balance Provision for Book balance Provision for Provision Reasons for bad debts bad debts ratio (%) provision
Receivables
Zijin County from
People's 215155320.00 107577660.00 215155320.00 107577660.00 50.00% government
Government aged over 5
years
Expected to
Others 2409558.81 2409558.81 2000000.00 2000000.00 100.00% be
irrecoverable
Total 217564878.81 109987218.81 217155320.00 109577660.00
Provision for bad debts of aging group:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 26143253.21 1307162.71 5.00%
1 to 2 years 825340.02 82534.00 10.00%
2 to 3 years 345055.22 103516.57 30.00%
3 to 4 years 22476.92 11238.46 50.00%
4 to 5 years 2236.80 1789.44 80.00%
Over 5 years 5362042.78 5362042.78 100.00%
Total 32700404.95 6868283.96
Description of the basis for determining provision for bad debts on a collective basis:
Provision for bad debts is made based on the general expected credit loss (ECL) model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts 12-month Lifetime ECLs (not yet Lifetime ECLs (credit- Total
ECLs credit-impaired) impaired)
Balance on 1 January 2026 10901675.84 109987218.81 120888894.65
Opening balance
Accrual 8212247.33 8212247.33
Recovery or reversal 8062545.83 8062545.83
Write-off 399599.00 399599.00
Other changes -135302.85 -135302.85
Balance on 30 June 2026 10916074.49 109587619.81 120503694.30
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
Amount of change in current period
Category Opening balance Recovery or Transfer/Writ Closing balance Accrual reversal e-off Others
Provision
for bad
debts of 120888894.65 8212247.33 8062545.83 399599.00 -135302.85 120503694.30
other
receivables
Total 120888894.65 8212247.33 8062545.83 399599.00 -135302.85 120503694.30
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Entity name Amount recovered Reasons for Recovery The basis for determining the original provision or reversed reversal method ratio for bad debts and its reasonableness
5) Other receivables actually written off
Unit: RMB
Item Amount written off
Others 399599.00
Significant write-off of other receivables:
Unit: RMB
Entity name Nature of other Amount Reasons for
Write-off
procedures Whether due to/from related receivables written off write-off performed party transactions
Description of write-off of other receivables:
Semi-Annual Report
6) Top 5 other receivables with closing balances by debtor
Unit: RMB
Entity Proportion in total Closing balance
name Nature of other receivables Closing balance Aging other closing of bad debt balance receivable provision
Compensation for investment
First and construction project of 215155320.00 Over 5 64.46% 107577660.00
Winner Medical (Heyuan) years
Second Deposit and guarantee deposit 15656693.47 Within 1 year 4.69% 782834.67
Third Others 6193340.03 Within 1 year 1.86% 309667.00
Fourth Deposit and guarantee deposit 5119696.64 Within 1 year 1.53% 255984.83
Within 1
Fifth Others 4917703.07 year 3-4 years over 1.47% 4913674.41
5 years
Total 247042753.21 74.01% 113839820.91
7) Presented as “Other receivables” due to centralised management
Unit: RMB
Other description:
9. Advances to Suppliers
(1) Presentation of prepayments by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 304288622.80 95.96% 166358685.76 92.77%
1 to 2 years 12280592.02 3.87% 12569766.20 7.01%
2 to 3 years 520408.93 0.16% 390290.74 0.22%
Total 317089623.75 179318742.70
Reasons for non-timely settlement of important advances from customers with the aging more
than 1 year:
(2) Advances to suppliers with Top 5 closing balances by prepayment object
Supplier Closing balance Proportion in total closing balance of advances
First 94481439.03 29.80%
Second 96236484.26 30.35%
Third 12465456.84 3.93%
Fourth 8799446.50 2.78%
Fifth 6174748.69 1.95%
Total 218157575.32 68.80%
Other description:
10. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate
industry
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory falling Inventory falling
price reserves or price reserves or
Item provision for provision for
Book balance impairment of Carrying amount Book balance impairment of Carrying amount
contract contract
performance performance
costs costs
Raw materials 471183308.52 13802825.25 457380483.27 426515412.13 16092327.97 410423084.16
Work in
process 299968712.58 8089589.92 291879122.66 283112438.71 18180794.50 264931644.21
Goods on
hand 1412490823.62 101326921.40 1311163902.22 1385540258.49 93362105.64 1292178152.85
Semi-finished
products
shipped in 52976552.74 0.00 52976552.74 35983569.08 35983569.08
transit
Low-value
consumables 14239494.12 914031.19 13325462.93 13628598.45 931993.41 12696605.04
Total 2250858891.58 124133367.76 2126725523.82 2144780276.86 128567221.52 2016213055.34
Semi-Annual Report
(2) Data resources recognised as inventories
Unit: RMB
Item Inventory of outsourced Inventory of self-processed Inventory of data resources data resources data resources otherwise acquired Total
(3) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: RMB
Increase in current period Decrease in current period
Item Beginning balance Reversal or Closing balance Provision Others write-off Others
Raw
materials 16092327.97 2089373.89 4378876.61 13802825.25
Work in
process 18180794.50 4291985.80 14383190.38 8089589.92
Goods on
hand 93362105.64 44059156.39 36094340.63 101326921.40
Low-value
consumables 931993.41 17962.22 914031.19
Total 128567221.52 50440516.08 54874369.84 124133367.76
Inventory impairment provision by portfolio
Unit: RMB
Closing balance Opening balance
Accruing Accruing
Combination
Provision for proportion name Closing balance for Opening balance Provision for
proportion
depreciation depreciation depreciation
for
depreciation
provision provision
Raw materials
and goods
processed by 471183308.52 13802825.25 2.93% 426515412.13 16092327.97 3.77%
the
commission
Work in
process 299968712.58 8089589.92 2.70% 283112438.71 18180794.50 6.42%
Goods on
hand 1412490823.62 101326921.40 7.17% 1385540258.49 93362105.64 6.74%
Semi-finished
products
shipped in 52976552.74 0.00 0.00% 35983569.08 0.00%
transit
Low-value
consumables 14239494.12 914031.19 6.42% 13628598.45 931993.41 6.84%
Total 2250858891.58 124133367.76 5.51% 2144780276.86 128567221.52 5.99%
The accounting standard for calculating the provision for inventory impairment by portfolio
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;
(4) Description of closing balance of inventory containing the capitalised amount of borrowing
costs
(5) Description of amortisation of costs to fulfil a contract for the current year
11. Financial Assets Held for Trading
Unit: RMB
Item Closing
Provision
balance for
Ending carrying
amount Fair value
Estimated Estimated
impairment disposal cost disposal time
Other description
12. Non-Current Assets Due within a Year
Unit: RMB
Item Closing balance Opening balance
Long-term receivables due within
one year 4836676.55 4707526.63
Certificates of deposits due within
one year 668216111.12 428086333.31
Total 673052787.67 432793859.94
(1) Non-current assets due within a year
?Applicable √N/A
(2) Other non-current assets due within a year
?Applicable √N/A
13. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 997659.52 881568.59
VAT input tax to be
deducted/Uncertified input tax 61458211.82 55515674.59
Prepaid corporate income tax 10677285.63 1585317.44
Unamortised expenses 35060776.99 27676950.97
Others 732627.46 18202.67
Total 108926561.42 85677714.26
Semi-Annual Report
Information related to compensatory assets
Other description:
14. Debt Investments
(1) Debt investment
Unit: RMB
Closing balance Opening balance
Item
Book balance Provision for Carrying impairment amount Book balance
Provision for Carrying
impairment amount
Changes in impairment allowance for debt investments in the current period
Unit: RMB
Item Opening balance Increase in current Decrease in period current period Closing balance
(2) Important debt investments at end of year
Unit: RMB
Closing balance Opening balance
Debt
item Book Coupon Actual Maturity Overdue Book Coupon Actual Maturity Overdue
value rate rate date principal value rate rate date principal
(3) Provision for impairment
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts
12-month ECLs Lifetime ECLs (not yet Lifetime ECLs (credit-
Total
credit-impaired) impaired)
Opening balance
Criteria for stage classification and provision ratio for bad debts
(4) Debt investments actually written off
Unit: RMB
Item Amount written off
Write-off of significant debt investments
Debt investment write-offs:
Changes in book balance with significant changes in the current period of provision for loss
?Applicable √N/A
Other description:
15. Other Debt Investments
(1) Other debt investments
Unit: RMB
Fair Accumulated
value impairment
Item Opening Accrued Interest change Closing
Accumulated provision recognised
balance interest adjustments in balance Cost fair value change in other
Remark
current comprehensive
period income
Changes in impairment allowance for other debt investments in the current period
Unit: RMB
Item Opening balance Increase in current Decrease in period current period Closing balance
(2) Important other debt investments at end of year
Unit: RMB
Closing balance Opening balance
Other debt
item Book Coupon Actual Maturity Overdue Book Coupon Actual Maturity Overdue
value rate rate date principal value rate rate date principal
(3) Provision for impairment
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts
12-month ECLs Lifetime ECLs (not yet Lifetime ECLs (credit-
Total
credit-impaired) impaired)
Opening balance
Criteria for stage classification and provision ratio for bad debts
Semi-Annual Report
(4) Other debt investments actually written off
Unit: RMB
Item Amount written off
Write-off of significant other debt investments
Changes in book balance with significant changes in the current period of provision for loss
?Applicable √N/A
Other description:
16. Other Equity Investments
Unit: RMB
Gain Accumulated Loss Reasons for
recognised in Loss included gains included accumulated Dividend designating to be
Project Opening other in other in other in other income Closing measured at fair
name balance comprehensive comprehensive comprehensive comprehensive recognised balance value and its changes
income for the income for the income at the income at the during the are recorded into
period period end of the end of the period other comprehensive period period income
Derecognition during the current year
Unit: RMB
Project name Accumulated gains transferred to
Cumulative losses
transferred to retained Reasons for termination of retained earnings earnings confirmation
Itemized disclosure of the current non-trading equity instrument investment
Unit: RMB
Amount of Reasons for
other Reasons for designating other
Project Recognised Accumulated Accumulated comprehensive to be measured at fair comprehensive
name dividend gains losses income value and its changes are income income transferred into recorded into other transferring
retained comprehensive income into retained
income income
Other description:
17. Long-Term Receivables
(1) Long-term receivables
Unit: RMB
Closing balance Opening balance
Item Discount rate
Book balance Provision for Carrying bad debts amount Book balance
Provision for Carrying range
bad debts amount
Finance leases 32054602.63 32054602.63 31209579.37 31209579.37 4.20%-5.00%
Including:
unrealized
financing -4562487.43 -4562487.43 -5407510.69 -5407510.69 4.20%-5.00%
income.Non-current
assets due -4836676.55 -4836676.55 -4707526.63 -4707526.63 4.20%-5.00%
within a year
Rental deposit 54978449.55 2748922.54 52229527.01 60092661.11 3004633.13 57088027.98 2.90%-3.0%
Total 82196375.63 2748922.54 79447453.09 86594713.85 3004633.13 83590080.72
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts Carrying Carrying
Amount Proportion Amount Provision amount Amount Proportion Provision amount (%) ratio (%) (%) Amount ratio (%)
Including:
Provision
for bad
debts made
on a 82196375.63 100.00% 2748922.54 3.34% 79447453.09 86594713.85 100.00% 3004633.13 3.47% 83590080.72
collective
basis
Including:
Total 82196375.63 100.00% 2748922.54 3.34% 79447453.09 86594713.85 100.00% 3004633.13 3.47% 83590080.72
Provision for bad debts made on a collective basis:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision ratio (%)
Provision for bad debts made on a
collective basis by credit risk 82196375.63 2748922.54 3.34%
characteristics
Including:
Deposit and guarantee deposit 54978449.55 2748922.54 5.00%
Others 27217926.08
Total 82196375.63 2748922.54
Semi-Annual Report
Description of the basis for determining provision for bad debts on a collective basis:
Provision for bad debts is made based on the general expected credit loss (ECL) model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts 12-month Lifetime ECLs (not yet Lifetime ECLs (credit- Total
ECLs credit-impaired) impaired)
Opening balance
Criteria for stage classification and provision ratio for bad debts
(3) Provision for bad debts accrued recovered or reversed
Unit: RMB
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or Transfer/Writereversal -off Others
balance
Rental
deposit 3004633.13 470973.66 726684.25 2748922.54
Total 3004633.13 470973.66 726684.25 2748922.54
Significant recovery or reversal of provision for bad debts for the current period:
Unit: RMB
Entity Amount recovered or Reasons for Recovery The basis for determining the original
name reversed reversal method provision ratio for bad debts and its reasonableness
Other description:
(4) Long-term receivables actually written off
Unit: RMB
Item Amount written off
Write-off of significant long-term receivables
Unit: RMB
Entity Nature of long- Amount Reasons for Write-off Whether due to/from related
name term receivables written off write-off
procedures
performed party transactions
Description of write-off of long-term receivables:
18. Long-Term Equity Investments
Unit: RMB
Increase or decrease in current period
Beginning Impairment Investment gains Closing
Invested unit balance (carrying allowance and losses
Adjustment of Changes Declared Provision Closing balance balance of
amount) opening
Further Capital recognised by other in other payment of cash for Others (carrying amount) impairment
balance investment reduction the equity comprehensive dividends or provision
method income
equity profits impairment
I. Joint ventures
II. Associates
Company S Note1. 456585119.49 -6586927.73 -17198056.50 432800135.26
Chengdu Winner Likang
Medical Products Co. 20987023.45 -356758.80 20630264.65
Ltd.Zhejiang Shiyou
Medical Materials Co. 896284.09 -144183.94 -26253.61 725846.54
Ltd.Hubei Xianchuang
Technology Co. Ltd. 521398.01 521398.01
Subtotal 478989825.04 -7087870.47 -17224310.11 454677644.46
Total 478989825.04 -7087870.47 -17224310.11 454677644.46
Note 1*: On 28 February 2024 the Group acquired a 35.2055% equity interest in Company S at
a consideration of USD60 million (equivalent to RMB428074000.00). The Group appointed
two directors to Company S and exercises significant impact over it and the investment is
accounted for using the equity method. The Group paid cash consideration on 12 March 2024
and appointed two directors to Company S on 12 March 2024 and 1 April 2024 respectively.The Group has significant impact over Company S and accounts for the investment using the
equity method. On 20 August 2025 the Group paid an additional cash consideration of USD10
million (equivalent to RMB71327283.40). Following the capital increase the shareholding
increased to 38.8219%. The Group continues to have significant impact over Company S and
the investment is accounted for using the equity method.The recoverable amount is determined according to the higher of the net amount of the assets fair
value subtracted by the disposal costs
?Applicable √N/A
The recoverable amount is determined based on the present value of expected future cash flows
?Applicable √N/A
Reasons for the apparent inconsistency between the aforementioned information and the data
used in impairment testing in prior years or external information
Reasons for the variance between the information utilised in the Company’s impairment testing
in prior years and the actual circumstances of the current year
Other description
19. Other Non-Current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 98872421.77 99881071.54
Including: Fund investments 73603810.38 73603810.38
Convertible corporate bond investments (Note 1*) 25268611.39 26277261.16
Total 98872421.77 99881071.54
Other description:
Note 1*: 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%.Semi-Annual Report
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
Item Buildings Land use rights Construction in progress Total
I. Original book value
1. Opening balance 5972970.52 5972970.52
2. Increase in current period
(1) Outsourcing
(2) Transfer from inventory / fixed
assets / construction in progress
(3) Increase by business
combination
3. Decrease in current period
(1) Disposal
(2) Other roll-out
4. Closing balance 5972970.52 5972970.52
II Accumulated depreciation and
accumulated amortization
1. Opening balance 4518675.25 4518675.25
2. Increase in current period 449655.82 449655.82
(1) Provision or amortization 449655.82 449655.82
3. Decrease in current period
(1) Disposal
(2) Other roll-out
4. Closing balance 4968331.07 4968331.07
III. Provision for impairment
1. Opening balance
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other roll-out
4. Closing balance
IV. Carrying amount
1. Closing carrying amount 1004639.45 1004639.45
2. Opening carrying amount 1454295.27 1454295.27
The recoverable amount is determined according to the higher of the net amount of the assets fair
value subtracted by the disposal costs
?Applicable √N/A
The recoverable amount is determined based on the present value of expected future cash flows
?Applicable √N/A
Reasons for the apparent inconsistency between the aforementioned information and the data
used in impairment testing in prior years or external information
Reasons for the variance between the information utilised in the Company’s impairment testing
in prior years and the actual circumstances of the current year
Other description:
(2) Investment properties measured using the fair value model
?Applicable √N/A
Semi-Annual Report
(3) Transfer to investment properties using the fair value model
Unit: RMB
Item Accounts before Amount Conversion Approval Impact on Impact on other conversion reason procedures profit or loss comprehensive income
(4) Investment properties without certificates of title
Unit: RMB
Item Carrying amount Reasons for not obtaining the certificate of title
Other description
21. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 4138743158.96 4199969234.92
Total 4138743158.96 4199969234.92
(1) Fixed assets
Unit: RMB
Electronic
equipment
Item Buildings Land ownership Machinery Vehicles office Total equipment and
others
I. Original book
value:
1. Opening
balance 3272497173.77 2689773.12 2437071196.70 42315222.10 260342679.77 6014916045.46
2. Increase in
current period 23076156.53 70421404.85 2236022.49 21051038.77 116784622.64
(1) Purchase 2482395.93 60377408.71 2236022.49 21014829.04 86110656.17
(2) Transfers
from
construction in 20593760.60 10043996.14 36209.73 30673966.47
progress
(3) Increase by
business
combination
3. Decrease in
current period 2243090.11 12101558.01 759085.19 9480700.68 24584433.99
(1) Disposal or
scrap 238043.43 11148765.99 631951.13 9011629.94 21030390.49
Exchange rate
movement 2005046.68 952792.02 127134.06 469070.74 3554043.52
4. Closing
balance 3293330240.19 2689773.12 2495391043.54 43792159.40 271913017.86 6107116234.11
II. Accumulated
depreciation
1. Opening
balance 545213099.96 986500222.29 22335530.72 149145802.87 1703194655.84
2. Increase in
current period 58664182.14 89626148.98 1324407.63 15346153.97 164960892.72
(1) Provision 58664182.14 89626148.98 1324407.63 15346153.97 164960892.72
Electronic
Item Buildings Land
equipment
ownership Machinery Vehicles office Total equipment and
others
3. Decrease in
current period 414263.05 5294437.52 485762.43 4777161.24 10971624.24
(1) Disposal or
scrap 183654.00 5294437.52 485691.50 4760422.09 10724205.11
Exchange rate
movement 230609.05 70.93 16739.15 247419.13
4. Closing
balance 603463019.05 1070831933.75 23174175.92 159714795.60 1857183924.32
III. Provision for
impairment
1. Opening
balance 46943964.21 63695676.92 1112513.57 111752154.70
2. Increase in
current period 47173.04 7935.11 55108.15
(1) Provision 47173.04 7935.11 55108.15
3. Decrease in
current period 140749.80 477362.22 618112.02
(1) Disposal or
scrap 477362.22 477362.22
Exchange rate
movement 140749.80 140749.80
4. Closing
balance 46803214.41 63265487.74 1120448.68 111189150.83
IV. Carrying
amount
1. Closing
carrying amount 2643064006.73 2689773.12 1361293622.05 20617983.48 111077773.58 4138743158.96
2. Opening
carrying amount 2680340109.60 2689773.12 1386875297.49 19979691.38 110084363.33 4199969234.92
(2) Fixed assets that are temporarily idle
Unit: RMB
Item Original book Accumulated Provision for value depreciation impairment Carrying amount Remark
Machinery
equipment 42497466.01 19468032.91 13772204.16 9257228.94
Not needed for
now
Electronic
equipment and
office 6173116.81 5171935.60 220657.30 780523.91
Not needed for
now
equipment etc.Total 48670582.82 24639968.51 13992861.46 10037752.85
(3) Fixed assets leased out under operating leases
Unit: RMB
Item Ending carrying amount
Plants leased out 4048426.12
(4) Fixed assets without certificates of title
Unit: RMB
Semi-Annual Report
Item Carrying amount Reasons for not obtaining the certificate of title
Winner Medical (Wuhan) - No.1 The formalities have not yet been
Workshop Phase II (Phase II) 112442507.51 completed
Winner Medical (Wuhan) - No.1 The formalities have not yet been
Sorting Workshops (Phase II) 66605682.48 completed
Winner Medical (Wuhan) - No.2 129589117.53 The formalities have not yet been Sorting Workshops (Phase II) completed
Winner Medical (Wuhan) - No.3 The formalities have not yet been
Sorting Workshops (Phase II) 58888161.73 completed
Winner Medical (Wuhan) -
Connecting Corridor for Sorting 2634736.20 The formalities have not yet been
Workshops (Phase II) completed
Winner Medical (Wuhan) - 169721.81 The formalities have not yet been Guardhouse Phase II completed
Winner Medical (Wuhan) - Fire
Pump Room Phase II (Phase II) 221006.80
The formalities have not yet been
completed
Winner Medical (Wuhan) - Shift
Workers' Dormitory Building No. 29584883.39 The formalities have not yet been
10 completed
Winner Medical (Wuhan) - Canteen
Expansion Project 8888978.46
The formalities have not yet been
completed
Winner Medical (Wuhan) - R&D 66945391.92 The formalities have not yet been Building Phase II (Phase II) completed
Winner Medical (Hunan) -
Hazardous Chemicals Warehouse 2551915.89 The formalities have not yet been
(with Spill Containment Basin) completed
Other description
(5) Impairment testing of fixed assets
?Applicable √N/A
(6) Liquidation of fixed assets
Unit: RMB
Item Closing balance Opening balance
Other description
22. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 492588739.83 511625219.44
Total 492588739.83 511625219.44
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item
Book balance Provision for Carrying Provision for Carrying impairment amount Book balance impairment amount
Winner Medical 10064448.99 10064448.99 9838707.10 9838707.10
(Jiayu) engineering
project
Winner Medical
(Shenzhen) 400650.62 400650.62 12104881.82 12104881.82
engineering project
Winner Medical
(Hunan) 240254654.93 240254654.93 196620000.37 196620000.37
Engineering Project
Mexico Longterm
Medical 61134615.60 61134615.60 57351464.37 57351464.37
Engineering Project
XJ Purcotton
Engineering Project 5714949.22 5714949.22
GRI Engineering
Project 2679307.74 2679307.74 4969915.33 4969915.33
Winner Guilin
engineering project 15880227.64 10205833.26 5674394.38 15880227.64 10205833.26 5674394.38
Winner Medical
(Huanggang) 12529689.88 12529689.88 26426689.78 26426689.78
Engineering Project
Other equipment to
be installed and 154136028.47 154136028.47 198639166.29 198639166.29
miscellaneous
projects
Total 502794573.09 10205833.26 492588739.83 521831052.70 10205833.26 511625219.44
(2) Current changes in major projects under construction
Unit: RMB
Amount
carried Other Proportion
Including:
decreases of total Progress Accumulated interest
Interest
Increase in forward to Closing amount of capitalisation capitalisation Source Project name Budget number Opening balance current period fixed assets in current balance
project of interest funds in the rate in the of
in current input to works capitalisation current current funds
period period the budget period period
Winner Medical
(Hunan) Engineering
Project - Industrial 369300000.00 196620000.37 43890212.39 236689.91 240273522.85 88.30% 99% Others
Park Project Phase I
Mexico Longterm
Medical Engineering
Project - Plant 70288000.00 57351464.37 3250639.23 60602103.60 89.65% 90% Others
Cleanroom Project
Total 439588000.00 253971464.74 47140851.62 236689.91 0.00 300875626.45
(3) Provision for impairment of construction in progress in current period
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance Reason for provision
Winner Guilin -
Buildings in 1-3# 10205833.26 10205833.26 Project on hold due to
Workshops policy reason
Total 10205833.26 10205833.26 --
Other description
(4) Impairment testing of construction in progress
?Applicable √N/A
(5) Engineering materials
Unit: RMB
Item Closing Opening balance balance
Semi-Annual Report
Book balance Provision for Carrying Book balance Provision for Carrying impairment amount impairment amount
Other description:
23. Productive Biological Assets
(1) Productive biological assets using cost measurement mode
?Applicable √N/A
(2) Impairment testing of productive biological assets using the cost measurement model
?Applicable √N/A
(3) Productive biological assets using fair value measurement mode
?Applicable √N/A
24. Oil and Gas Assets
?Applicable √N/A
25. Right-of-Use Assets
(1) Right-of-use assets
Unit: RMB
Item Buildings Machinery Vehicles Total
I. Original book value
1. Opening balance 1010582403.40 930892.52 3407962.37 1014921258.29
2. Increase in current
period 60410235.52 0.00 0.00 60410235.52
(1) New lease 60410235.52 0.00 0.00 60410235.52
3. Decrease in current
period 67302437.34 28858.62 105650.32 67436946.28
(1) Disposal 61183508.15 0.00 0.00 61183508.15
(2) Changes in
exchange rate 6118929.19 28858.62 105650.32 6253438.13
4. Closing balance 1003690201.58 902033.90 3302312.05 1007894547.53
II. Accumulated
depreciation
1. Opening balance 458578667.32 445422.40 1114538.89 460138628.61
2. Increase in current
period 103123361.09 139323.84 431994.82 103694679.75
(1) Provision 103123361.09 139323.84 431994.82 103694679.75
3. Decrease in current
period 58784487.73 13808.55 34551.85 58832848.13
(1) Disposal 57960007.27 0.00 0.00 57960007.27
(2) Changes in
exchange rate 824480.46 13808.55 34551.85 872840.86
4. Closing balance 502917540.68 570937.69 1511981.86 505000460.23
III. Provision for
impairment
1. Opening balance
2. Increase in current
period
(1) Provision
3. Decrease in current
period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing carrying
amount 500772660.90 331096.21 1790330.19 502894087.30
2. Opening carrying
amount 552003736.08 485470.12 2293423.48 554782629.68
Semi-Annual Report
(2) Testing for impairment of right-of-use assets
?Applicable √N/A
Other description:
26. Intangible Assets
(1) Intangible assets
Unit: RMB
Non-
Item Land use rights Patent right patented Software use right Franchised use right Trademark right Client relations Total technology
I. Original book value
1. Opening
balance 585966016.92 290313235.96 91897426.26 10228226.53 148416951.82 244557772.00 1371379629.49
2. Increase in
current period 360000.00 17164884.25 17524884.25
(1) Purchase 360000.00 17164884.25 17524884.25
(2) Internal R&D
(3) Increase by
business
combination
3. Decrease in
current period 299696.25 27136.28 141886.72 127612.87 596332.12
(1) Disposal 18867.92 18867.92
(2) Changes in
exchange rate 299696.25 27136.28 123018.80 127612.87 577464.20
4. Closing balance 585666320.67 290646099.68 108920423.79 10228226.53 148289338.95 244557772.00 1388308181.62
II. Accumulated
amortization
1. Opening
balance 85494312.61 98747854.80 61181579.17 10228226.53 34750153.49 72129000.14 362531126.74
2. Increase in
current period 6510048.29 15296138.58 4108202.64 7251817.94 14183252.16 47349459.61
(1) Provision 6510048.29 15296138.58 4108202.64 7251817.94 14183252.16 47349459.61
3. Decrease in
current period 318719.66 95212.54 251412.71 324488.74 989833.65
(1) Disposal 14779.87 14779.87
(2) Changes in
exchange rate 318719.66 95212.54 236632.84 324488.74 975053.78
4. Closing balance 91685641.24 113948780.84 65038369.10 10228226.53 41677482.69 86312252.30 408890752.70
III. Provision for
impairment
1. Opening
balance
2. Increase in
current period
(1) Provision
3. Decrease in
current period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing
carrying amount 493980679.43 176697318.84 43882054.69 106611856.26 158245519.70 979417428.92
2. Opening
carrying amount 500471704.31 191565381.16 30715847.09 113666798.33 172428771.86 1008848502.75
The proportion of intangible assets formed through internal R & D of the Company in the
balance of intangible assets at the end of current period: 0.00%
(2) Data resources recognised as intangible assets
Unit: RMB
Intangible assets of Intangible assets of data
Item Intangible assets of outsourced data resources self-processed data resources otherwise Total resources acquired
(3) Land use rights without certificate of title
Unit: RMB
Item Carrying amount Reasons for not obtaining the certificate of title
Two certificates combined into one. The completed
Winner Medical (Hunan) - plant has obtained the real estate title certificate; the
Infusion class Phase II land 79429754.03 remaining plant will apply for the real estate title
certificate upon completion.Other description
(4) Testing for impairment of intangible assets
?Applicable √N/A
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decrease in
Increase in current period current
Invested entity name or goodwill period
forming matter Opening balance Closing balance Formed by
business Exchange rate movement Disposal combination
Business combination not involving
entities under common control - 464544303.53 -14401349.18 450142954.35
Acquisition of GRI
Business combination not involving
entities under common control -
Acquisition of Winner Medical 2681232.09 2681232.09
Malaysia
Business combination not involving
entities under common control - 392686398.74 392686398.74
Acquisition of Longterm Medical
Business combination not involving
entities under common control - 253215940.40 253215940.40
Acquisition of Winner Guilin
Business combination not involving
entities under common control -
Acquisition of Winner Medical 388989258.26 388989258.26
(Hunan)
Business combination not involving
entities under common control - 20397972.33 20397972.33
Acquisition of Junjian Medical
Business combination not involving
entities under common control - 411644.13 411644.13
Acquisition of Hubei Zhongfu
Total 1522926749.48 -14401349.18 1508525400.30
(2) Provision for impairment of goodwill
Unit: RMB
Increase in Decrease in
Invested entity name or goodwill Opening balance current period current period Closing forming matter balance
Provision Disposal
Business combination not involving 2681232.09 2681232.09
Semi-Annual Report
entities under common control -
Acquisition of Winner Medical
Malaysia
Business combination not involving
entities under common control - 123384750.24 123384750.24
Acquisition of Winner Guilin
Business combination not involving
entities under common control -
Acquisition of Winner Medical 335186885.63 335186885.63
(Hunan)
Total 461252867.96 461252867.96
(3) Information relating to the asset group or asset group combination of goodwill
Name The composition and basis of the asset group or portfolio it
Operating Is it consistent
belongs to segments with previous and basis years
The cash inflows generated by GRI from operating related
GRI long-term assets are basically independent of the cash inflows Yes
produced by other assets or asset groups.Zhejiang The cash inflows generated by Longterm Medical and its
Longterm and its subsidiaries from operating related long-term assets are
subsidiaries basically independent of the cash inflows produced by other
Yes
assets or asset groups.Winner Medical The cash inflows generated by Winner Medical (Hunan) and
(Hunan) and its its subsidiaries from operating related long-term assets are
subsidiaries basically independent of the cash inflows produced by other
Yes
assets or asset groups.Winner Guilin The cash inflows generated by Winner Guilin and its
and its subsidiaries from operating related long-term assets are
subsidiaries basically independent of the cash inflows produced by other
Yes
assets or asset groups.Junjian Medical operate related long-term assets with cash
Junjian Medical inflows generated being largely independent Junjian generated Yes
by other assets or asset groups.The cash inflows generated by Hubei Zhongfu from operating
Hubei Zhongfu related long-term assets are basically independent of the cash Yes
inflows produced by other assets or asset groups.Changes in asset groups or combinations of asset groups
Name Composition before the Composition after the Objective facts and basis leading to change change changes
Other description
(4) Specific method for determining recoverable amount
The recoverable amount is determined according to the higher of the net amount of the assets fair
value subtracted by the disposal costs
?Applicable √N/A
The recoverable amount is determined based on the present value of expected future cash flows
?Applicable √N/A
Reasons for the apparent inconsistency between the aforementioned information and the data
used in impairment testing in prior years or external information
Reasons for the variance between the information utilised in the Company’s impairment testing
in prior years and the actual circumstances of the current year
(5) Completion of performance commitments and corresponding impairment of goodwill
A performance commitment is present when goodwill is established and the Reporting Period
or the preceding period falls within the commitment period.?Applicable √N/A
Other description
28. Long-Term Prepaid Expenses
Unit: RMB
Amortization
Item Opening balance Increase in current period amount in Other decreases Closing balance current period
Decoration cost 59275318.42 11888313.61 14355833.35 1611771.79 55196026.89
Decoration
expenses on leased 72601132.38 15435119.58 16322059.20 992847.74 70721345.02
assets
Others 2024563.29 124508.83 419090.69 43571.04 1686410.39
Total 133901014.09 27447942.02 31096983.24 2648190.57 127603782.30
Other description
Semi-Annual Report
29. Deferred Tax Assets and Deferred Tax Liabilities
(1) Unoffset deferred tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible
temporary Deferred tax
Deductible
assets temporary
Deferred tax
differences differences assets
Provision for impairment of
assets 475816467.62 78782846.16 492818700.52 83709759.89
Unrealized profit of internal
transaction 120790683.19 27203004.32 198204306.81 29730646.02
Deductible loss 19038697.20 3849169.88 16643858.26 1209683.26
Dismission welfare 2414144.48 373675.77 6145109.42 969438.85
Deferred Income 223120061.00 34459533.54 211162383.14 32710427.18
Member points 14331525.04 3582881.26 12677270.34 3169317.58
Accrued expenses 2165646.58 541411.65 15247192.70 2721192.02
Others 56815395.30 14203848.83 24521745.80 6051139.48
Deferred tax assets arising from
leases 531066699.76 119364937.18 601510665.94 134030658.55
Total 1445559320.17 282361308.59 1578931232.93 294302262.83
(2) Unoffset deferred tax liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred tax Taxable temporary liabilities temporary
Deferred tax
differences differences liabilities
Asset evaluation increment for
business combination not
involving entities under common 670287633.42 124786008.08 724757791.91 131212262.85
control
Changes in fair value of trading
financial assets 51746272.51 8120221.99 25280603.31 3997679.97
Depreciation of fixed assets 129339623.34 19400943.49 138362863.72 20754429.57
Changes in fair value of other
non-current financial assets 3603810.38 540571.56 3603810.38 540571.56
Others 997659.52 249414.88 881568.59 220392.14
Deferred tax liabilities arising
from leases 534948689.93 111049241.10 576310192.80 128363802.68
Total 1390923689.10 264146401.10 1469196830.71 285089138.77
(3) Deferred tax assets or liabilities presented as net amount after offset
Unit: RMB
Ending offset Closing balance of Beginning offset Beginning balance of
Item amount of deferred deferred tax assets amount of deferred deferred tax assets tax assets and and liabilities after tax assets and and liabilities after
liabilities offset liabilities offset
Deferred tax assets 134558386.58 147802922.01 148192931.59 146109331.24
Deferred tax
liabilities 134558386.58 129588014.52 148192931.59 136896207.18
(4) Details of unrecognised deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible loss 337647405.05 327677451.79
Provision for impairment of assets 1419773.38 1572475.78
Total 339067178.43 329249927.57
(5) Deductible losses on unrecognised deferred tax assets will expire in the following year
Unit: RMB
Year Closing balance Beginning amount Remark
2026 44657013.68 58424501.17
2027 57409545.85 66306538.57
2028 20926758.49 20926758.49
2029 15025863.01 15653500.08
2030 16328290.26 19973750.69
2031 9834832.19
No maturity date 173465101.57 146392402.79
Total 337647405.05 327677451.79
Other description
Semi-Annual Report
30. Other Non-Current Assets
Unit: RMB
Closing balance Opening balance
Item Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
CDs 932797077.67 932797077.67 1559776367.96 1559776367.96
Prepayments
for long-term 262121482.52 262121482.52 77756462.62 77756462.62
assets
Buildings and
land use rights
of Shenzhen 20228190.61 20228190.61 20228190.61 20228190.61
Longhua
Industrial Park
Total 1215146750.80 1215146750.80 1657761021.19 1657761021.19
Information related to compensatory assets
Other description:
31. Assets with Restricted Ownership or Use Rights.
Unit: RMB
Closing balance Opening balance
Item
Book balance Carrying Type of Restricted Carrying Type of Restricted amount restriction situation Book balance amount restriction situation
For details For details
see "VII. see "VII.Notes to the Notes to the
Currency 24538891.46 24538891.46 Security consolidated 33267211.34 33267211.34 Security consolidated fund deposit financial deposit financial
statements / 1. statements / 1.Currency Currency
Funds". Funds".Fixed
assets 168872352.88 96159758.52 Pledge Mortgage 124717671.57 59215679.29 Pledge Mortgage
Intangible
Assets 8932380.55 7473425.09 Pledge Mortgage
Total 202343624.89 128172075.07 157984882.91 92482890.63
Other description:
32. Short-Term Loans
(1) Classification of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Mortgage 20000000.00 90000000.00
Debt of honor 2111613832.15 222013524.63
Bill discount 110000000.00 1522800000.00
Borrowing interest 2149809.34 1816054.61
Total 2243763641.49 1836629579.24
Description of classification of short-term borrowings:
(2) short-term loans unpaid overdue
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
Item Closing balance Borrowing interest rate Overdue time Overdue interest rate
Other description
33. Financial Liabilities Held for Trading
Unit: RMB
Item Closing balance Opening balance
Including:
Including:
Other description:
34. Derivative Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Other description:
Semi-Annual Report
35. Notes Payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance bills 393163306.73 381818750.95
Total 393163306.73 381818750.95
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.
36. Accounts Payable
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Within 1 year inclusive 1059960726.54 1260125441.19
1~2 years (including 2 years) 37754541.12 11159306.59
2~3 years (including 3 years) 8549489.21 2955160.54
Over 3 years 6670918.36 6378829.00
Total 1112935675.23 1280618737.32
(2) Significant accounts payable aged over one year
Unit: RMB
Item Closing balance Reasons for failure of payment or carryover
Hubei Industrial Construction
Group Co. Ltd. 8746111.00 Not yet finally accepted
Wuxi Hongqi Textile Machinery
Equipment Co. Ltd. 6625000.00 Not yet finally accepted
Total 15371111.00
Other description:
37. Other Payables
Unit: RMB
Item Closing balance Opening balance
Interest payable 0.00
Dividends payable 121984316.10
Other payables 477478070.87 529651533.30
Total 599462386.97 529651533.30
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Total 0.00
Significant overdue and unpaid interest:
Unit: RMB
Borrower Overdue balance Overdue reason
Other description:
(2) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 121984316.10
Total 121984316.10
Other descriptions including significant dividends payable that have not been paid for over one
year should disclose the reasons for non-payment:
Semi-Annual Report
(3) Other Payables
1) Other payables by nature
Unit: RMB
Item Closing balance Opening balance
Deposit and guarantee deposit 306231473.30 293025055.19
Freight and other accrued expenses 123326724.70 161355764.74
Commission 10282490.80 27177544.35
ESOP stock buyback requirement 3816080.07 3975155.07
Others 33821302.00 44118013.95
Total 477478070.87 529651533.30
2) Significant accounts payable aged over one year
Unit: RMB
Item Closing balance Reasons for failure of payment or carryover
Relocation compensation deposits
Shenzhen Xingda Real Estate 249949168.93 for the Urban Renewal Project of Development Co. Ltd. Winner Industrial Park (Note
XVIII.7)
Total 249949168.93
Other description
38. Advance from Customers
(1) Presentation of advance from customers
Unit: RMB
Item Closing balance Opening balance
Total 0.00
(2) Significant receipts in advance aged over one year or overdue
Unit: RMB
Item Closing balance Reasons for failure of payment or carryover
Unit: RMB
Item Changes in balance Reason for change
39. Contract Liabilities
Unit: RMB
Item Closing balance Opening balance
Customer consideration received 160831088.39 157237221.09
Member points 14331525.04 12677270.34
Total 175162613.43 169914491.43
Significant contract liabilities aged over one year
Unit: RMB
Item Closing balance Reasons for failure of payment or carryover
Amount and reasons for significant changes in carrying amount in the reporting period
Unit: RMB
Item Changes in balance Reason for change
40. Employee Benefits Payable
(1) Presentation of employee benefits payable
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance
I. Short-term compensation 319119484.12 966228380.19 1026820670.29 258527194.02
II. Welfare after dismission -
defined contribution plan 7312197.92 83050837.25 83061048.60 7301986.57
III. Dismission welfare 6145109.42 12626690.49 15085103.43 3686696.48
Total 332576791.46 1061905907.93 1124966822.32 269515877.07
Semi-Annual Report
(2) Presentation of short-term employee benefits
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance
1. Wages bonuses
allowances and subsidies 315255041.72 897549396.58 957133258.50 255671179.80
2. Employee welfare expenses 1956734.64 5806083.35 6864339.14 898478.85
3. Social insurance premium 431561.81 38767334.65 38767128.97 431767.49
Including: medical insurance
premium 255370.30 33641719.40 33641797.73 255291.97
Industrial injury
insurance premium 123607.72 3423949.70 3423665.69 123891.73
Birth insurance premium 52583.79 1701665.55 1701665.55 52583.79
4. Housing fund 21955.00 22796376.97 22796658.97 21673.00
5. Labor union expenditure and
personnel education fund 788445.04 1133755.73 1203851.80 718348.97
Other short-term compensation 665745.91 175432.91 55432.91 785745.91
Total 319119484.12 966228380.19 1026820670.29 258527194.02
(3) Presentation of defined contribution plans
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance
1. Basic endowment insurance 7206060.52 79598031.41 79608383.81 7195708.12
2. Unemployment insurance
premium 106137.40 3452805.84 3452664.79 106278.45
Total 7312197.92 83050837.25 83061048.60 7301986.57
Other description:
41. Taxes Payable
Unit: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 37942357.04 12324094.87
Corporate income tax 86903808.03 98510386.40
Individual income tax 3980368.31 4856974.77
Urban maintenance and
construction tax 2780742.98 1704477.26
Housing property tax 6162504.84 7400348.77
Item Closing balance Opening balance
Education surcharge and local
education surcharge 2025713.09 1404573.18
Land use tax 3085605.91 2164977.79
Stamp duty 1414707.53 1321989.49
Others 11397.56 871713.49
Total 144307205.29 130559536.02
Other description
42. Liabilities Held for Sale
Unit: RMB
Item Closing balance Opening balance
Other description
Unit: RMB
43. Non-Current Liabilities Due within One Year
Item Closing balance Opening balance
Long-term borrowing due within one year 1670000.00
Lease liabilities due within one year 174424305.08 184899235.07
Current portion of long-term employee benefits
payable 319841.24 647000.00
Total 176414146.32 185546235.07
Other description:
Unit: RMB
44. Other Current Liabilities
Item Closing balance Opening balance
Refund payable 2165646.58 1965794.96
Output tax to be transferred 19181941.88 20112610.98
Endorsed bills not derecognised 5592303.52
Total 26939891.98 22078405.94
Semi-Annual Report
Increase or decrease in short-term bonds payable:
Unit: RMB
Name Provision
of Book Coupon Issue
Term
of Issue Opening Current interest at
Amortization
of premium Current Closing Default
debt value rate date debt amount balance issue book and discount repayment balance or not value
Total
Other description:
45. Long-Term Loans
(1) Classification of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Debt of honor 158330000.00 50000000.00
Total 158330000.00 50000000.00
Description of classification of long-term borrowings:
Other descriptions including interest rate range:
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item 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
Provision
Name Book Coupon Issue Term Issue Opening Current interest Amortization Current Closing Default
of debt value rate date of debt amount balance issue at book of premium and discount repayment balance or not value
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
Opening balance Increase in current Decrease in current Closing balance
Outstanding financial period period
instruments
Quantity Carrying Quantity Carrying Quantity Carrying Quantity Carrying amount amount amount amount
Description of the basis for classification of other financial instruments as financial liabilities
Other description
47. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 550486841.14 601774309.04
Lease liabilities due within one year -174424305.08 -184899235.07
Total 376062536.06 416875073.97
Other description
48. Long-Term Payable
Unit: RMB
Item Closing balance Opening balance
Long-term payable 25958339.05 26994520.77
Total 25958339.05 26994520.77
Semi-Annual Report
(1) Long-term payables by nature
Unit: RMB
Item Closing balance Opening balance
Borrowings from Related Parties Outside the Scope of
Group Consolidation (Note 1) 25958339.05 26994520.77
Other description:
Note 1: This represents an interest-free loan provided by the controlling shareholder Winner
Group Limited to Nature Health (HK) with a principal amount of CAD6000000.00 (equivalent
to RMB30685200.00). The loan term is from 1 September 2024 to 31 August 2029. After
taking into account the discounting effect the recognised loan amount was RMB26994520.77.The difference was recognised as an equity transaction in other capital reserves.The impact of exchange rate changes during the period was RMB-1036181.72 resulting in a
closing balance of RMB25958339.05.
(2) Special accounts payable
Unit: RMB
Item Opening Increase in Decrease in balance current period current period Closing balance Causes
Other description:
49. Long-Term Employee Benefits Payable
(1) Table of long-term employee benefits payable
Unit: RMB
Item Closing balance Opening balance
I Welfare after dismission - net liabilities of defined
benefit plan 8348841.24 8676000.00
Current portion of long-term employee benefits
payable -319841.24 -647000.00
Deferred compensation (Note) Note 1* 5488616.62 5242993.56
Total 13517616.62 13271993.56
Note 1*: Deferred compensation represents a certain proportion of compensation for certain GRI
employees that is deferred until after their retirement.
(2) Changes in defined benefit obligations
Changes in the present value of defined benefit obligations are as follows:
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Planned assets:
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Net defined benefit liability/(asset)
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Description of the content of defined benefit plan and its related risks impact on the Company’s
future cash flow time and uncertainty:
Description of significant actuarial assumptions and sensitivity analysis results of defined benefit
plan:
Other description:
50. Estimated Liabilities
Unit: RMB
Item Closing balance Opening balance Causes
Total 0.00
Other descriptions including relevant important assumptions and estimation descriptions of
important provisions:
51. Deferred Income
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance Causes
Governmen
t grants 211162383.13 18715000.00 6757322.13 223120061.00
Government grants
related to assets
Total 211162383.13 18715000.00 6757322.13 223120061.00
Other description:
Semi-Annual Report
52. Other Non-Current Liabilities
Unit: RMB
Item Closing balance Opening balance
GRI remaining equity forward purchase obligations
(Note) 411966094.32 387682358.99
Total 411966094.32 387682358.99
Other description:
In September 2024 the Group acquired a 75.2% equity interest in GRI. Pursuant to the share
purchase agreement the Group has a forward purchase obligation for the remaining 24.8%
equity interest held by minority shareholders. This obligation represents a non-discretionary
share repurchase obligation that cannot be unconditionally avoided. Accordingly the Group
recognised this repurchase obligation as a financial liability at the present value of the required
settlement amount at initial recognition and subsequently measured it at fair value.
53. Share Capital
Unit: RMB
Increase/decrease (+ -)
Opening New Share capital balance Bonus Closing balance issue of issuance increase from Others Subtotal shares capital surplus
Total number
of shares 582329808.00 641120.00 641120.00 582970928.00
Other description:
Note: In June 2026 pursuant to the "Proposal on the Company's 2024 Restricted Stock Incentive
Plan (Draft) and its Summary" and other related proposals reviewed and approved at the 4th
meeting of the 4th session of the Board of Directors the 4th meeting of the 4th session of the
Board of Supervisors and the 4th Extraordinary General Meeting of Shareholders in 2024 the
initial grant of restricted shares under the incentive plan entered its first vesting period on 18
May 2026. As of 12 June 2026 90 incentive participants subscribed for the restricted shares
vested during the first vesting period of the initial grant under the 2024 Restricted Stock
Incentive Plan. The grant price was RMB14.39 per share and 641120.00 restricted shares
vested with total subscription funds of RMB9225716.80 of which RMB641120.00 was
recognised as an increase in share capital and RMB8584596.80 was transferred to capital
reserves. Following the change the Company's registered capital and share capital were both
RMB582970928.00.
54. Other Equity Instruments
(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
Opening balance Increase in current Decrease in current Closing balance
Outstanding financial period period
instruments
Quantity Carrying Quantity Carrying Quantity Carrying Quantity Carrying 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 description:
55. Capital Reserves
Unit: RMB
Item Opening balance Increase in Decrease in current current period period Closing balance
Capital premium (share
capital premium) 3236368903.49 19686323.00 24283735.34 3231771491.15
Other capital surplus 153368650.10 15502904.54 137865745.56
Total 3389737553.59 19686323.00 39786639.88 3369637236.71
Other descriptions including the changes in the current period and the reasons for the changes:
(1) In June 2026 pursuant to the "Proposal on the Company's 2024 Restricted Stock Incentive
Plan (Draft) and its Summary" and other related proposals reviewed and approved at the 4th
meeting of the 4th session of the Board of Directors the 4th meeting of the 4th session of the
Board of Supervisors and the 4th Extraordinary General Meeting of Shareholders in 2024 the
initial grant of restricted shares under the incentive plan entered its first vesting period on 18
May 2026. As of 12 June 2026 90 incentive participants subscribed for the restricted shares
vested during the first vesting period of the initial grant under the 2024 Restricted Stock
Incentive Plan. The grant price was RMB14.39 per share and 641120.00 restricted shares
vested with total subscription funds of RMB9225716.80 of which RMB641120.00 was
recognised as an increase in share capital and RMB8584596.80 was transferred to capital
premium. The corresponding unlocking share-based payment expenses of RMB 11101726.20
were transferred from other capital reserves to capital premium.
(2) The decrease during the year was primarily due to the following: In September 2024 the
Company acquired a 75.2% equity interest in GRI. Pursuant to the share purchase agreement the
Company has a forward purchase obligation for the minority interests. In the consolidated
financial statements the Company assumed a non-discretionary share repurchase obligation that
cannot be unconditionally avoided. The Company recognised this repurchase obligation as a
financial liability at the present value of the required settlement amount and included it in capital
premium. The change in this financial liability during the current year resulted in a decrease of
RMB 24283735.34 in capital reserve.
(3) The decrease in other capital reserves was mainly due to the reversal of RMB4401178.34 in
share-based payment expenses during the period and the unlocking of the equity incentive plan
during the period with the corresponding unlocking share-based payment expenses of
RMB11101726.20 transferred from other capital reserves to capital premium.
56. Treasury Shares
Unit: RMB
Item Opening balance Increase in Decrease in current current period period Closing balance
Treasury shares 4187537.10 129449806.28 133637343.38
Total 4187537.10 129449806.28 133637343.38
Other descriptions including the changes in the current period and the reasons for the changes:
1. The increase during the period was due to the Company's repurchase of 4604262 shares
Semi-Annual Report
during the period.
57. Other Comprehensive Income
Unit: RMB
Amount incurred in current period
Less: amount Less: amount
included in other included in other
Opening Amount before comprehensive comprehensive Less: Attributable to Attributable Item Closing balance current income income in income in Income the parent to minority balance
tax previous period previous period tax company after shareholders transferred into transferred into expenses tax after tax
profit or loss in retained income
current period in current period
I. Other
comprehensive
income that will -236876.20 -236876.20
not be reclassified
to profit or loss
Including:
Remeasurement
of a defined -236876.20 -236876.20
benefit plan
II. Other
comprehensive
income that may -11598162.79 -24342713.77 -24342713.77 1800343.78 -35940876.56
be reclassified to
profit or loss
Exchange
differences on
translation of
foreign currency -11598162.79 -24342713.77 -24342713.77 1800343.78 -35940876.56
financial
statements
Total other
comprehensive -11835038.99 -24342713.77 -24342713.77 1800343.78 -36177752.76
income
Other explanations including the adjustment of the effective part of the cash flow hedging gains
and losses transferred to the initial recognised amount of the hedged item:
58. Specialised Reserves
Unit: RMB
Item Opening balance Increase in current Decrease in current period period Closing balance
Other descriptions including the changes in the current period and the reasons for the changes:
59. Surplus Reserves
Unit: RMB
Item Opening balance Increase in Decrease in current current period period 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:
60. Undistributed Profit
Unit: RMB
Item Current period Prior period
Undistributed profit at the end of previous period 7140453466.82 6780116870.53
before adjustment
Undistributed profits at the beginning of the period
after adjustment 7140453466.82 6780116870.53
Add: Net profits attributable to the owners of parent
company in the current period 513499129.90 491998009.07
Less: Dividends payable on ordinary shares 174698942.40 145582452.00
Undistributed profits at the end of the period 7479253654.32 7126532427.60
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 common control affect the opening
undistributed profit of RMB0.00.
5). The total impact of other adjustments on the opening undistributed profit is RMB0.00
Detailed explanation on the use of capital reserve to offset losses:
61. Revenue and Cost
Unit: RMB
Amount incurred in current period Amount incurred in previous period
Item
Revenue Cost Revenue Cost
Main business 5432222971.61 2755864275.33 5260562564.63 2710598502.93
Other businesses 53988286.91 42303640.80 35649392.29 25796277.79
Total 5486211258.52 2798167916.13 5296211956.92 2736394780.72
Semi-Annual Report
Breakdown of revenue and cost of sales:
Unit: RMB
Segment 1 Segment 2 Medical consumables Consumer goods Total
Contract
classification Revenue Operating Operating costs Revenue costs Revenue Operating costs Revenue Operating costs Revenue Operating costs
Business type 2641988399.38 1628155047.66 2844222859.14 1170012868.47 5486211258.52 2798167916.13
Including:
Main business 2588000112.47 1585851406.86 2844222859.14 1170012868.47 5432222971.61 2755864275.33
Other businesses 53988286.91 42303640.80 53988286.91 42303640.80
Classified by
operating area 2641988399.38 1628155047.66 2844222859.14 1170012868.47 5486211258.52 2798167916.13
Including: 1048156986.72 669709673.32 2844222859.14 1170012868.47 3892379845.86 1839722541.79
Domestic sales 1593831412.66 958445374.34 1593831412.66 958445374.34
Overseas sales
Type of markets
or clients
Including:
Type of
contracts
Including:
Classified by
timing of
transfer of goods
Including:
Classified by
contract duration
Including:
Classified by
sales channels
Including:
Total
Information relating to performance obligations:
Amounts Types of The nature of quality
Time to fulfill Important the goods the Is he the main borne by the assurance
Item performance payment Company responsible Company that are expected provided by obligations terms promises to person
transfer to be refunded
the Company
to customers and related obligations
Other description
Information relating to the transaction price allocated to the remaining performance obligations:
The amount of income corresponding to the performance obligations signed but not yet
performed or completed at the end of this Reporting Period is RMB0.00 of which RMB0.00 is
expected to be recognised as revenue in year RMB0.00 is expected to be recognised as revenue
in year and RMB0.00 is expected to be recognised as revenue in year.Information about variable consideration in the contract:
Significant contract changes or significant transaction price adjustments
Unit: RMB
Item Accounting treatment Amount of impact on methods revenue
Other description
62. Taxes and Surcharges
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Urban maintenance and construction tax 18806503.86 16943704.74
Education surcharge 8620652.53 7700584.35
Housing property tax 12087845.86 10314447.25
Land use tax 5840437.87 3200049.68
Stamp duty 2755710.42 3735171.94
Local education surcharge 5746920.67 5146119.47
Others 283020.02 166588.15
Total 54141091.23 47206665.58
Other description:
Semi-Annual Report
63. Administrative Expenses
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Employee compensation 241957171.71 251518957.88
Depreciation and amortization charge 97779159.15 100415385.08
Consultant and intermediary service fees 26630305.01 18381220.78
Communication and network services cloud service
fees etc. 11937186.36 12101926.68
Water/electricity fee 5637578.53 5659637.32
Travel expenses 4674833.32 3583340.61
Office allowance 5408314.71 8549393.50
Maintenance cost 2909482.40 5007138.76
Material consumption 2187140.56 3919752.37
Others 30113955.58 27036373.74
Total 429235127.33 436173126.72
Other description
64. Selling Expenses
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Employee compensation 371564957.44 351756153.04
Travel expenses 17110775.89 15038995.11
Office communication costs 10828534.25 8503507.92
Sales commissions and expenses from the e-commerce
platform 138761589.51 144526632.13
Depreciation and amortization 112477625.82 121179518.36
Advertising and promotion expenses 558441510.83 501245493.81
Lease and property management expenses 78009852.01 68438212.02
Others 32658016.59 44215140.42
Total 1319852862.34 1254903652.81
Other description:
65. Research and Development Expenses
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Employee compensation 88275542.89 90467325.35
Depreciation and amortization 11560067.49 11527447.14
Material 45859413.65 37106947.90
Other miscellaneous expenses 46745050.83 55275846.51
Total 192440074.86 194377566.90
Other description
66. Finance Expenses
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Interest expenses 25093014.26 32211146.81
Including: Interest expense on lease liabilities 10140734.00 11474345.41
Less: Interest income 37540602.03 40152719.55
Exchange gain or loss 76467787.28 -4046409.42
Others 2377993.77 655601.21
Total 66398193.28 -11332380.95
Other description
67. Other Income
Unit: RMB
Sources of other income Amount incurred in Amount incurred in current period previous period
Government grants 35311870.62 29417982.09
Tax credits and deductions 7732613.64 15105319.97
Total 43044484.26 44523302.06
Semi-Annual Report
68. Net Exposure Hedging
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Other description
69. Fair Value Gains
Unit: RMB
Source of fair value gains Amount incurred in Amount incurred in current period previous period
Income from structured deposits of bank financial
products and trust products 31032052.63 8043719.46
Total 31032052.63 8043719.46
Other description:
70. Investment Income
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Long-term equity investment gains measured by
employing the equity method -7087870.47 -12839023.48
Investment income from purchasing financial products 17053263.88 23089639.93
Total 9965393.41 10250616.45
Other description
71. Credit Impairment Loss
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Loss on bad debts of accounts receivable -7451536.21 -11702418.09
Loss on bad debts of other receivables -149701.50 465138.14
Impairment loss for long-term receivables 255710.59 -260524.10
Total -7345527.12 -11497804.05
Other description
72. Impairment losses of assets
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
I. Inventory falling price loss and impairment loss of
contract performance costs -37652513.02 -28797662.46
IV. Impairment loss of fixed assets -55108.15 -3504483.05
XII. Others 531696.72 40880.55
Total -37175924.45 -32261264.96
Other description:
73. Gains on Disposal of Non-Current Assets
Unit: RMB
Gains on disposal of non-current assets Amount incurred in Amount incurred in current period previous period
Gains on disposal of non-current assets -478162.30 1518248.05
74. Non-Operating Income
Unit: RMB
Amounts recorded in the
Item Amount incurred in Amount incurred in non-recurring gains and current period previous period losses of the current
period
Government grants 1043.64 182000.00 1043.64
Gains on retirement of
non-current assets 247892.02 146846.93 247892.02
Income from
compensation or fines 435020.25 444471.56 435020.25
Others 3353427.47 2208547.64 3353427.47
Total 4037383.38 2981866.13 4037383.38
Other description:
Semi-Annual Report
75. Non-Operating Expenses
Unit: RMB
Amounts recorded in the
Item Amount incurred in Amount incurred in non-recurring gains and current period previous period losses of the current
period
External donations 205409.06 1867517.79 205409.06
Losses on damage and
retirement of non-current 1235366.39 8519605.93 1235366.39
assets
Compensation or
amercement outlay 4279813.33 4189848.71 4279813.33
Others 967562.32 1841351.15 967562.32
Total 6688151.10 16418323.58 6688151.10
Other description:
76. Income Tax Expenses
(1) Table of income tax expenses
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Current tax 126590536.77 132152672.92
Deferred tax -9490077.35 -4711231.02
Total 117100459.42 127441441.90
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in current period
Total profit 662367542.06
Tax at the statutory/applicable tax rate 99355131.31
Effect of different tax rates for subsidiaries 26077229.53
Impact of income tax before adjustment 12559443.74
Effect of costs expenses and losses not deductible for tax 1004856.30
Effect of tax losses for which deferred tax assets were not recognised in prior
periods -10617904.11
Effect of deductible temporary differences or tax losses for which deferred tax
assets were not recognised in current period 8517615.55
Effect of additional deductions for research and development expenses -19003658.78
Others -792254.12
Income tax expenses 117100459.42
Other description:
77. Other Comprehensive Income
Refer to Note 57. Other comprehensive income for details.
78. Cash Flow Statement Items
(1) Cash related to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Item Amount incurred in current Amount incurred in previous period period
Guarantee deposit deposit and quality
guarantee deposit received 14997088.72 50106046.07
Interest income received 14014477.57 11503565.45
Government grants received 47269548.49 76617449.78
Others 27283312.84 17565207.69
Total 103564427.62 155792268.99
Descriptions of other cash receipts relating to operating activities:
Other cash payments relating to operating activities
Unit: RMB
Item Amount incurred in current Amount incurred in previous period period
Management and R&D costs paid in cash 98594084.34 95577535.04
Selling expenses paid in cash 137205302.24 126907306.06
Deposit guarantee deposit and quality
guarantee deposit paid 16676996.43 18713013.96
Bank handling charge 2377993.77 655601.21
Others 66603161.68 96564124.15
Total 321457538.46 338417580.42
Description of other cash payments relating to operating activities:
Semi-Annual Report
(2) Cash relating to investing activities
Other cash receipts relating to investing activities
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Guarantee deposits received related to investment
recovery 2130000.00
Total 2130000.00
Significant cash received related to investing activities
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Description of other cash received related to investing activities:
Other cash payments relating to investing activities
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Significant cash paid for investing activities
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Description of other cash paid related to investing activities:
(3) Cash relating to investing activities
Other cash receipts relating to investing activities
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Description of other cash received related to investing activities:
Other cash payments relating to investing activities
Item Amount incurred in Amount incurred in current period previous period
Lease liability principal and interest paid on lease
payments 117415390.58 142325856.76
Treasury shares repurchase paid 129449806.28
Deposit paid on bills and letters of credit (for
financing purposes) 27651448.11
Total 246865196.86 169977304.87
Description of other cash paid related to investing activities:
Changes in various liabilities arising from financing activities
√Applicable ?N/A
Unit: RMB
Increase in current period Decrease in current period
Item Opening balance Non-cash Closing balance Cash changes changes Cash changes
Non-cash
changes
Short-term
loans 1836629579.24 435869781.96 28735719.71 2243763641.49
Dividends
payable 174698942.40 52714626.30 121984316.10
Long-term
payable 26994520.77 1036181.72 25958339.05
Current
portion of
non-current 185546235.07 176414146.32 185546235.07 176414146.32
liabilities
Long-term
loans 50000000.00 110000000.00 1670000.00 158330000.00
Lease
liabilities 416875073.97 26671306.58 67483844.49 376062536.06
Total 2516045409.05 545869781.96 377784395.30 306780887.58 30405719.71 3102512979.02
(4) Description of cash flows presented on a net basis
Item Relevant facts Basis for net presentation Financial impact
(5) Significant activities and financial impacts that do not involve current cash receipts and
payments but affect the Company's financial status or may affect the Company's cash flow in the
future
Semi-Annual Report
79. Supplemental Information for the Statement of Cash Flows
(1) Supplemental information for the statement of cash flows
Unit: RMB
Further Information Current amount Last term amount
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 545267082.64 518187462.80
Add: Provision for impairment of assets 44521451.57 43759069.01
Depreciation of fixed assets depletion of oil and gas
assets depreciation of productive biological assets 164960892.72 151182762.40
Depreciation of right-of-use assets 103694679.76 109888719.38
Amortization of intangible assets 47349459.61 48375479.79
Amortization of long-term deferred expenses 31096983.24 29807533.80
Losses on disposal of fixed assets intangible assets and
other long-term assets (gains expressed with "-") -478162.30 -1518248.05
Loss on retirement of fixed assets (gains expressed with
"-") 987474.37 8372759.00
Loss from fair value change (gains expressed with "-") -31032052.63 -8043719.46
Finance expenses (gains expressed with "-") 47201591.37 -3561992.71
Investment losses (gains expressed with "-") -9965393.41 -10250616.45
Decreased in deferred tax assets (increase expressed
with "-") -1693590.77 6833291.49
Increase in deferred income tax liabilities (Decrease is
indicated by "-") -7308192.66 -11633284.57
Decrease in inventories (increase expressed with "-") -148164981.50 -38054042.96
Decrease in operating receivables (increase is indicated
by "-") -237515272.59 -271120354.80
Increase in operating payables (Decrease is indicated by
"-") -231087900.02 -253098192.32
Others -4401178.34 20799147.72
Net cash flows from operating activities 313432891.06 339925774.07
2. Significant investing and financing activities not involving
cash receipts and payments
Debts converted to capital
Convertible bonds due within 1 year
Fixed assets under finance leases
3. Net change in cash and cash equivalents:
Closing balance of cash 1770850227.94 1487086387.91
Less: Opening balance of cash 1560722108.58 1357097385.35
Add: Closing balance of cash equivalents
Less: Closing balance of cash equivalents
Net increase in cash and cash equivalents 210128119.36 129989002.56
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other description:
(3) Net cash received from disposal of subsidiaries in the current period
Unit: RMB
Amount
Including:
Including:
Including:
Other description:
(4) Composition of currency fund
Unit: RMB
Item Closing balance Opening balance
I. Cash 1770850227.94 1560722108.58
Including: cash on hand 185259.18 98223.24
Cash at banks readily available for payment 1752300782.98 1541265623.54
Other monetary capital readily available for
payment 18364185.78 19358261.80
III. Balance of currency fund at end of period 1770850227.94 1560722108.58
(5) Limited scope of use but still classified as cash and cash equivalents
Unit: RMB
Item Current amount Last term amount Reasons for retaining currency fund
Semi-Annual Report
(6) Currency funds that do not belong to cash and cash equivalents
Unit: RMB
Item Current amount Last term amount Reasons for not qualifying as currency fund
Other description:
(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 closing balance of the
previous year:
81. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Item Closing balance in foreign currency Conversion exchange rate
Closing balance converted
to RMB
Currency fund 371878922.69
Including: USD 50543002.98 6.8109 344243339.00
EUR 7793854.42 0.86855 6769352.26
HKD 2259482.88 7.7671 17549629.48
GBP 367918.57 9.0145 3316601.95
Accounts receivable 263910632.89
Including: USD 37344339.39 6.8109 254348561.15
EUR 730648.57 7.7671 5675020.51
HKD
GBP 431199.87 9.0145 3887051.23
Long-term loans
Including: USD
EUR
HKD
Other receivables 6825134.10
USD 1002089.90 6.8109 6825134.10
Accounts payable 20568698.55
USD 2758813.66 6.8109 18790003.96
EUR 215880.10 7.7671 1676762.32
GBP 11307.59 9.0145 101932.27
Other payables 27786579.39
USD 4079722.12 6.8109 27786579.39
Other description:
(2) The Nature and Financial Impact of the Lack of Exchangeability of Currencies the Spot
Exchange Rates Used and the Estimation Process and the Risks Faced by the Enterprise Due to
the Lack of Exchangeability of Currencies
?Applicable √N/A
(3) Description of overseas operating entities including for important overseas operating entities
the main overseas business place recording currency and selection basis shall be disclosed and
the reasons for changes in recording currency shall also be disclosed.√Applicable ?N/A
The significant foreign operations included in the Group's consolidated financial statements
comprise the Group's subsidiaries GRI USA Alleset Inc. GRI Alleset and GRI VN whose
principal places of operation are the United States Hong Kong Vietnam and other overseas
locations. Each operating entity uses its primary business currency as its functional currency. In
the first half of 2026 the functional currencies of the above significant foreign operations
remained unchanged.
(4) Circumstances Where the Functional Currency of a Foreign Operation Lacks
Exchangeability with the Enterprise's Presentation Currency
?Applicable √N/A
82. Leases
(1) The Company as the lessee:
√Applicable ?N/A
Variable lease payments not included in the measurement of the lease liabilities
√Applicable ?N/A
Item January-June 2026
Interest expense of lease liabilities 10140734.00
Simplified treatment of short-term lease expenses included in the cost of related
assets or profit or loss 21026627.39
Variable lease payments excluded from the lease liability measurement included
in the cost of the related asset or in the current period's profit or loss 7890523.77
Cash outflows for fixed lease payments 117415390.58
Total cash outflow related to leases 146332541.74
The Group 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 1-20 years while those of vehicles generally have lease terms of 6 years.Semi-Annual Report
Lease payments on short-term leases and leases of low-value assets applying practical expedients
√Applicable ?N/A
See the chart above
Leases involving sale and leaseback transactions
(2) The Company as lessor:
Operating leases - the Company as lessor
√Applicable ?N/A
Unit: RMB
Item Lease income Including: Income related to variable lease payments not accounted for in lease receipts
Rental income Note 1* 227522.94 0.00
Total 227522.94 0.00
Note 1*: The Group has entered into operating leases on the fourth floor of Building No. 8
located in Deqing County Zhejiang Province with a lease term from May 2023 to April 2027;
and on Building No. 8 (6 rooms in total) located in Lixian County Hunan Province with a lease
term from January 2021 to June 2026.Finance leases - the Company as lessor
√Applicable ?N/A
Unit: RMB
Income relating to
Item Sales profit or loss Finance income variable lease payments not included in the net
investment in the lease
Finance income on the net
investment in the lease 845023.26
Total 845023.26
Annual undiscounted lease receivables for the next five years
√Applicable ?N/A
Unit: RMB
Annual lease receipts before discounting
Item
Closing balance Beginning amount
First year 6289948.26 6289948.26
Second year 6145575.48 6145575.48
Year 3 6126136.18 6126136.18
Year 4 5981763.41 5981763.41
Year 5 5966894.84 5966894.84
Total undiscounted lease receipts
after five years 6106771.89 6106771.89
Reconciliation between undiscounted lease receivables and net investment in the lease
According to the lease contracts signed with lessees the undiscounted minimum lease receipts
are as follows:
Item 30 June 2026 31 December 2025
Within 1 year inclusive 6289948.26 6289948.26
1 to 2 years (inclusive) 6145575.48 6145575.48
2 to 3 years (inclusive) 6126136.18 6126136.18
3 to 4 years (inclusive) 5981763.41 5981763.41
4 to 5 years (inclusive) 5966894.84 5966894.84
Over 5 years 6106771.88 6106771.89
Subtotal 36617090.05 36617090.06
Less: Unearned finance income 4562487.43 5407510.69
Net investment in the leases 32054602.62 31209579.37
(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor
?Applicable √N/A
83. Data Resources
84. Others
Semi-Annual Report
VIII. Research and Development Expenditure
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 88275542.89 90467325.35
Depreciation and amortization 11560067.49 11527447.14
Material 45859413.65 37106947.90
Other miscellaneous expenses 46745050.83 55275846.51
Total 192440074.86 194377566.90
Including: Research and
development expenditure expensed 192440074.86 194377566.90
as incurred
1. Research and Development Items Eligible for Capitalisation
Unit: RMB
Increase in current period Decrease in current period
Item Opening Internal Recognised as Closing balance development Others intangible Transfer to balance
expenditure assets profit or loss
Total
Significant capitalised R&D projects
R&D Estimated How economic benefits The point at which Item progress completion are expected to be capitalisation
Specific criteria for
time generated begins initiating capitalisation
Provision for impairment of development expenditures
Unit: RMB
Item Opening balance Increase in Decrease in current period current period Closing balance
Impairment
testing
2. Important Outsourced Research Projects
The manner in which economic
Project name benefits are expected to be Judgment standards and specific basis for
generated capitalisation or expense
Other description:
IX. Consolidation Scope Changes
1. Business Combination not Involving Entities under Common Control
(1) Business combination not involving entities under common control for the period
Unit: RMB
Cash
Income of Net profit flows of
the of the the
Name of the Time of Cost of Equity Method of
Basis for acquiree acquiree acquired
equity equity acquisition equity Acquisition determination from the from the entity acquiree acquisition acquisition ratio acquisition date of acquisition acquisition acquisition from the date date to the date to the acquisition
end of the end of the date to the
period period end of the
period
Other description:
(2) Cost of the combination and goodwill
Unit: RMB
Combination cost
- Cash
- Fair value of non-cash assets
- Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of the equity held prior to the purchase date on the purchase date
- Others
Total combination cost
Less: the share of the fair value of identifiable net assets acquired
The amount of goodwill / combination cost less than the share of the fair value of identifiable net assets
acquired
Method for determining the fair value of equity
Disclosure of contingent consideration and the related changes:
Main reasons for the formation of large goodwill:
Other description:
Semi-Annual Report
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Unit: RMB
Fair value on the acquisition date Carrying amount on the acquisition date
Assets:
Currency fund
Accounts receivable payments
Inventory
Fixed assets
Intangible Assets
Debt:
Loan
Account payable payments
Deferred tax liabilities
Net assets
Less: Minority equity
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 description:
(4) Gains or losses arising from remeasurement of equity held prior to the acquisition date at fair
value
Whether there are transactions that realize the business combination step by step through
multiple transactions and obtain control right during the Reporting Period
?Yes √No
(5) Relevant description of the combination consideration or the fair value of the identifiable
assets and liabilities of the acquiree that cannot be reasonably determined on the acquisition date
or at the end of current period of the combination
(6) Other description
2. Business Combination Involving Entities under Common Control
(1) Business combination involving entities under common control during the period
Unit: RMB
Income of Net profit of
Basis of the the
business combined combined Income of Net profit Proportion
Name of of equity combination Basis for party from party from
the of the
merged obtained in involving Merger determination the the
combined combined
party business entities date of merger beginning beginning
party party
combination under date of current of current
during the during the
common period to period to comparison comparison
control the date of the date of period period
combination combination
Other description:
(2) Combination cost
Unit: RMB
Combination cost
- Cash
-- Carrying amount of non-cash assets
-- Carrying amount of debt issued or assumed
-- Book value of equity securities issued
-- Contingent consideration
Disclosure of contingent consideration and the related changes:
Other description:
(3) Carrying amount of assets and liabilities of the entity being absorbed on the combination date
Unit: RMB
Merger date End of previous period
Assets:
Currency fund
Accounts receivable payments
Inventory
Fixed assets
Intangible assets
Debt:
Loan
Account payable payments
Net assets
Less: Minority equity
Net assets acquired
Semi-Annual Report
Contingent liabilities of the entity being absorbed assumed in a business combination:
Other description:
3. Reverse Purchase
Basic information of transaction basis of transaction forming reverse purchase whether the
assets and liabilities retained by the listed company constitute business and their basis
determination of combination cost amount and calculation of adjusted equity in accordance with
equity transaction:
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 a situation that the investment in subsidiaries is disposed step by step through
multiple transactions and control is lost in current period
?Yes √No
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
Due to business needs the Company established Shenzhen PureH2B Technology Co. Ltd. in
January 2026 with a 100% equity interest; its subsidiary Nature Health International established
Winner Medical (VN) in January 2026 with a 100% equity interest; and its subsidiary GRI
deregistered its subsidiary Thermogear Inc. in January 2026.
6. Others
X. Interests in Other Entities
1. Interests in a Subsidiary
(1) Composition of enterprise group
Unit: RMB
Subsidiary Registered Main operation Registration Shareholding ratio
name capital site place Business nature Way of obtaining Direct Indirect
Shenzhen Shenzhen City Shenzhen City
Purcotton 130000000.00 Guangdong Guangdong Sale of Purcotton products 100.00% 0.00% Establishment Province Province
Beijing
Purcotton 3000000.00 Beijing Beijing Sale of Purcotton products 0.00% 100.00% Establishment
Guangzhou Guangzhou
Guangzhou City City
Purcotton 1000000.00 Guangdong Guangdong Sale of Purcotton products 0.00% 100.00% Establishment
Province Province
Shanghai
Purcotton 3000000.00 Shanghai Shanghai Sale of Purcotton products 0.00% 100.00% Establishment
Qianhai Shenzhen City Shenzhen City
Purcotton 10000000.00 Guangdong Guangdong Sale of Purcotton products 0.00% 100.00% Establishment Province Province
Winner Huanggang Huanggang Production and sales of pure Business combination
Medical 259459200.00 City Hubei City Hubei cotton spunlace non-woven
(Huanggang) Province Province fabric medical consumables
100.00% 0.00% involving entities under
and Purcotton products common control
Winner
Medical 23000000.00 Jingmen City
Jingmen City Production and sales of Business combination
Hubei Province Hubei medical consumables and 100.00% 0.00% involving entities under (Jingmen) Province Purcotton products common control
Winner Chongyang Chongyang Production and sales of Business combination Medical 28550000.00 County Hubei County Hubei
(Chongyang) Province Province medical consumables
100.00% 0.00% involving entities under
common control
Winner
Medical 333040000.00 Jiayu County
Jiayu County Production and sales of Business combination
Hubei Province Hubei medical consumables and 100.00% 0.00% involving entities under (Jiayu) Province Purcotton products common control
Winner
Medical 12413669.00 Zhijiang City
Zhijiang City
Hubei Production and sales of
Business combination
Hubei Province medical gray cloth 100.00% 0.00% involving entities under (Yichang) Province common control
Winner Tianmen City Tianmen City
Production and sales of pure Business combination
Medical 37670000.00 cotton spunlace non-woven Hubei Province Hubei fabric and Purcotton 100.00% 0.00% involving entities under (Tianmen) Province products common control
Winner Sales of medical Business combination
Medical 897570.00 Hong Kong Hong Kong consumables and healthy 60.00% 0.00% involving entities under
(Hong Kong) living consumer goods common control
Winner Business combination
Medical 4943266.40 Malaysia Malaysia Sales of medical 100.00% 0.00% not involving entities
Malaysia consumables under common control
Winner Heyuan City Heyuan City
Medical 100000000.00 Guangdong Guangdong There is no actual business
(Heyuan) Province Province operation at present
100.00% 0.00% Establishment
Winner Wuhan City Production and sterilization
Medical 800000000.00 Wuhan City Hubei Province Hubei
of pure cotton spunlace
(Wuhan) Province non-woven fabric and
100.00% 0.00% Establishment
Purcotton products
Shenzhen City Shenzhen City
PureH2B 150000000.00 Guangdong Guangdong Sales of personal care and other products 100.00% 0.00% Establishment Province Province
Purunderwea Shenzhen City Shenzhen City
r 5000000.00 Guangdong Guangdong
Sales of Cotton Lining 0.00% 100.00% Establishment
Province Province products
Huanggang Huanggang Huanggang
Purcotton 10000000.00 City Hubei City Hubei Sale of Purcotton products 0.00% 100.00% Establishment Province Province
Zhejiang Business combination
Longterm 50000000.00
Huzhou Huzhou Production and sales of
Zhejiang Zhejiang medical consumables 55.00% 0.00% not involving entities under common control
Hangzhou 5000000.00 Hangzhou Hangzhou Other technology promotion
Business combination
Shengyi Zhejiang Zhejiang services 0.00% 55.00% not involving entities under common control
Xi'an
Longtemu 5000000.00 Xi'an Shaanxi Xi'an Shaanxi
Engineering technical Business Combination
research and experimental 0.00% 55.00% not under Common
Semi-Annual Report
Subsidiary Registered Main operation Registration Shareholding ratio
name capital site place Business nature Way of obtaining Direct Indirect
development Control
Deqing 2000000.00 Huzhou Huzhou
Manufacturing of medical Business combination
Longterm Zhejiang Zhejiang instruments equipment and 0.00% 55.00% not involving entities device under common control
Manufacturing of medical Business combination
Medical US 0.00 US US instruments equipment and 0.00% 55.00% not involving entities
device under common control
Zhejiang Wenzhou City Wenzhou City Software and Information Business combination
Honglan 10651163.00 Zhejiang Zhejiang Technology Services 0.00% 31.35% not involving entities Province Province Industry under common control
Xiufeng Xiufeng
District Guilin District Guilin
Guilin Latex 86600997.00 City Guangxi City Guangxi
Business combination
Zhuang Zhuang Rubber products industry 91.74% 0.00% not involving entities
Autonomous Autonomous under common control
Region Region
Winner
Medical 44000111.00 Changde Changde Production and sales of
Business combination
(Hunan) Hunan Hunan medical consumables
68.70% 0.00% not involving entities
under common control
Ruian
Medical 2000000.00 Changsha Changsha
Engineering technical Business combination
Hunan Hunan research and experimental 0.00% 68.70% not involving entities Device development under common control
Junjian Shenzhen City Shenzhen City Business combination
Medical 20120000.00 Guangdong Guangdong
Sales of medical 100.00% 0.00% not involving entities
Province Province consumables under common control
MEDICAL
CV 138467940.00 Mexico Mexico
Production and sales of
medical consumables 0.00% 55.00% Establishment
Shanghai 2000000.00 Shanghai Shanghai Sales of medical
Business combination
Hongsong consumables 60.00% 0.00% not involving entities under common control
Jinzhou Jingzhou City Jingzhou City 87500000.00 Hubei Production and sale of
Business combination
Latex Hubei Province 0.00% 91.74% not involving entities Province rubber products under common control
Wuhan Wuhan City
Purcotton 20000000.00
Wuhan City
Hubei Province Hubei Sale of Purcotton products 0.00% 100.00% Establishment Province
Hong Kong
Purcotton 2768100.00 Hong Kong Hong Kong Sale of Purcotton products 0.00% 100.00% Establishment
Pan-China 1285531260.00 Hong Kong Hong Kong Trade and consultancy (H.K.) services 100.00% 0.00% Establishment
Winner Wuhan City Wuhan City
Medical 5000000.00 Hubei Province Hubei
Research and experimental
development 0.00% 67.00% Establishment Province
Purcotton Wuhan City Wuhan City 5000000.00 Hubei Research and experimental Agricultural Hubei Province development 0.00% 58.00% Establishment Province
Hubei Wuhan City Manufacturing of chemical Business combination
Zhongfu 10000000.00
Wuhan City
Hubei Province Hubei raw materials and chemical 0.00% 67.00% not involving entities Province products under common control
Jiaxing City Jiaxing City Sales of medical devices Business combination
GRI METC Note 1* Zhejiang Zhejiang and special industrial 75.20% not involving entities
Province Province protective products under common control
Business combination
GRI Alleset Note 2* Hong Kong Hong Kong Sales of medical products 75.20% not involving entities
under common control
Business combination
Alleset Inc Note 3* US US Sales of medical products 75.20% not involving entities
under common control
Business combination
GRI USA Note 4* US US Sales of medical products 75.20% not 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
Note 4* The registered capital of GRI USA is USD1 million
Difference between the shareholding ratio and the voting right ratio in the subsidiary:
Basis for holding half or less of the voting rights but still controlling the invested entity and
holding more than half of the voting rights but not controlling the invested entity:
For the important structured entity included in the combination scope the control basis is as
follows:
Basis for determining whether the company is an agent or a principal:
Other description:
The above are the Group's major subsidiaries
(2) Material non-wholly owned subsidiary
Semi-Annual Report
Unit: RMB
Profit or loss
Subsidiary name Minority attributable to
Current dividends
shareholding ratio minority declared to minority
Closing balance of
shareholders minority equity shareholders
Longterm Medical 45.00% 29688285.54 452042927.97
Difference between the shareholding ratio and the voting right ratio of the minority shareholders
of the subsidiary:
Other description:
(3) Summarised financial information of material non-wholly owned subsidiaries
Unit: RMB
Closing balance Opening balance
Subsidiary
name Current assets Non-current assets Total assets
Current Non-current
liabilities liabilities Total liabilities Current assets
Non-current Total assets Current Non-current assets liabilities liabilities Total liabilities
Longterm
Medical 441658855.00 713221508.03 1154880363.03 115700847.69 34169487.44 149870335.13 380855609.68 732692154.61 1113547764.29 137935985.28 37325234.91 175261220.19
Unit: RMB
Amount incurred in current period Amount incurred in previous period
Subsidiary Total Cash flow Total Cash flow
name Revenue Net profit comprehensive from investing Revenue Net profit comprehensive
from
income activities income
investing
activities
Longterm
Medical 270553868.74 65592265.57 65592265.57 270387739.98 62273639.59 62273639.59
Other description:
(4) Major restrictions on the use of enterprise group assets and the settlement of enterprise group
debts
(5) Financial or other support provided to structured entities included in the scope of
consolidated financial statements
Other description:
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
(2) Effect of the transaction on non-controlling interests and equity attributable to owners of the
parent
Unit: RMB
Purchase cost / Disposal consideration
- Cash
- Fair value of non-cash assets
Total purchase cost / Disposal consideration
Less: The share of the net asset of a subsidiary calculated based on the proportion of equity acquired/disposed
Balance
Including: Capital reserve adjusted
Surplus reserve adjusted
Undistributed profit adjusted
Other description
3. Equity in Joint Ventures and Associates
(1) Important cooperative enterprises or joint ventures
Shareholding Accounting treatment
Name of cooperative Main ratio method of investment
enterprise or joint operation Registrati Business
venture site on place nature
in cooperative
Direct Indirect enterprises or joint
ventures
Sales of
Company S US Cayman Islands medical 38.82%
Accounted for as long-
products term equity investment
Difference between the shareholding ratio and the voting right ratio in the cooperative enterprise
or joint venture:
Basis for holding less than 20% of the voting rights but having a significant impact or holding
20% or more of the voting rights but not having a significant impact:
Semi-Annual Report
(2) Major Financial Information about Important Cooperative Enterprises
Unit: RMB
Closing balance/amount Beginning balance/amount incurred in current period incurred in previous period
Current assets
Including: Currency fund
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Non-controlling interests
Attributable to the parent company shareholders'
equity
Share of net assets by shareholding ratio
Adjustment items
- Goodwill
- Unrealized profit of internal transaction
- Others
Carrying amount of equity investments in joint
ventures
Fair value of equity investments in joint
ventures with publicly quoted prices
Revenue
Finance expenses
Income tax expenses
Net profit
Net profit of discontinued operation
Other Comprehensive Income
Total comprehensive income
Dividends received from joint ventures in
current year
Other description
(3) Major Financial Information About Important Jointly Operated Enterprises
Unit: RMB
Closing balance/amount Beginning balance/amount
incurred in current period incurred in previous period
Company S Company S
Current assets 313595418.94 357114141.83
Non-current assets 216187928.66 233580447.87
Total assets 529783347.60 590694589.70
Current liabilities 218794068.08 244085702.39
Non-current liabilities 10116124.58 22927826.20
Total liabilities 228910192.66 267013528.59
Net assets 300873154.94 323681061.11
Non-controlling interests
Attributable to the parent company
shareholders' equity
Share of net assets by shareholding ratio 116804675.34 125659137.86
Adjustment items 315995459.92 330925981.63
- Goodwill
- Unrealized profit of internal transaction
- Others
Carrying amount of equity investments in
cooperative enterprises 432800135.26 456585119.49
Fair value of equity investments in
cooperative enterprises with publicly quoted
prices
Revenue 280043810.46 239573520.31
Net profit -16967041.11 -35522800.70
Net profit of discontinued operation
Other Comprehensive Income -16967041.11 -35522800.70
Total comprehensive income
Dividends received from cooperative
enterprises in current year
Other description
Semi-Annual Report
(4) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: RMB
Closing balance/amount Beginning balance/amount incurred in current period incurred in previous period
Cooperative enterprise:
Total number of following items by shareholding
ratio
- Joint venture:
Total carrying amount of investment 21877509.20 22404705.55
Total number of following items by shareholding
ratio
- Net profit -500942.74 -333043.88
- Total comprehensive income -500942.74 -333043.88
Other description
(5) Description of significant restrictions on the ability of joint ventures or associates to transfer
funds to the Company
(6) Excess losses of cooperative enterprise or joint venture
Unit: RMB
Accumulated Unrecognised loss in Name of cooperative current period (or net Accumulated
enterprise or joint venture unrecognised losses in the previous period profit shared in current
unrecognised losses at the
period) end of 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. Important Pooling of Interests
Name of joint Main operation Registration Shareholding ratio / share enjoyed
operation site place Business nature Direct Indirect
Difference between the shareholding ratio or share enjoyed and the voting right ratio in joint
operation:
When the joint operation is a separate entity the basis for classifying it as a joint operation is as
below:
Other description
5. Description of 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
Amount
recognised in Amounts Other
Accounting Opening Addition of non- transferred in changes
subject balance grants in the operating other income during
Closing Asset/income
current period income in in the current the balance related
the current period period
period
Deferred
Income 211162383.13 18715000.00 6757322.13 223120061.00 Asset related
3. Government Grants Included in Profit or Loss
√Applicable ?N/A
Unit: RMB
Accounting subject Amount incurred in current Amount incurred in previous period period
Other income 35311870.62 29417982.09
Non-operating income 1043.64 182000.00
Other description
Semi-Annual Report
XII. Risks Related to Financial Instruments
1. Risks Arising from Financial Instruments
The Group’s daily activities expose it to risks arising from various financial instruments mainly
including credit risk liquidity risk and market risk. The Group’s risk management policy to
address these risks is described as follows:
The Board of Directors is responsible for planning and establishing the Group’s risk
management framework formulating risk management policies and relevant guidelines and
supervising the implementation of risk management measures. The Group has risk management
policies to identify and analyse risks faced by the Group which set rules for specific risks
covering market risk credit risk and liquidity risk management. The Group regularly assesses
changes in the market environment and its operating activities to determine whether to update
risk management policies and systems. The Group’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 Group. The Internal Audit Department of the Group reviews risk
management control and procedures on a regular basis and reports the results to the Audit
Committee of the Group.The Group 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.
(1) Credit risk
Credit risk is the risk that a counterparty to a financial instrument will cause a financial loss for
the Group by failing to discharge an obligation.The Group’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 Group’s financial assets is equal to its maximum credit
exposure.The Group 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 listed
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 Group has policies to limit the credit exposure on notes receivable accounts
receivable receivables financing contract assets and other receivables. The Group 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 Group. For customers
with poor credit records the Group uses written payment reminders or shortens or cancels credit
periods to ensure that the Group’s credit risk is overall controllable.The Group 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 Group’s accounts receivable is widely
dispersed the Group has no significant concentration of credit risk. The Group does not hold any
collateral or other credit enhancements on the balance of accounts receivable
Criteria for determining significant increase in credit risk
At each balance sheet date the Group assesses whether the credit risk on financial instruments
has increased significantly since initial recognition. The principal criteria adopted by the Group
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 Group 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 Group 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.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs the obligation of
settlement by cash payment or other financial assets. The Group'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 Group'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:
June 2026
Item Within 1 year 1 to 2 years 2-5 years Over 5 years Total
Short-term loans 2246557460.68 - - - 2246557460.68
Notes payable 393163306.73 - - - 393163306.73
Accounts
payable 1112935675.23 - - - 1112935675.23
Other payables 599462386.97 - - - 599462386.97
Current portion
of non-current 179867808.54 - - - 179867808.54
liabilities
Long-term loans - 8331343.26 138916520.68 19593508.94 166841372.88
Long-term
payable - - 28708200.00 - 28708200.00
Lease liabilities - 133109545.63 136920132.08 115648971.51 385678649.22
Total 4531986638.15 141440888.89 304544852.76 135242480.45 5113214860.25
Semi-Annual Report
2025
Item Within 1 year 1 to 2 years 2-5 years Over 5 years Total
Short-term loans 1839923994.52 - - - 1839923994.52
Notes payable 381818750.95 - - - 381818750.95
Accounts
payable 1280618737.32 - - - 1280618737.32
Other payables 529651533.30 - - - 529651533.30
Current portion
of non-current 186876235.07 - - - 186876235.07
liabilities
Long-term loans - 1330000.00 3990000.00 52482666.67 57802666.67
Long-term
payable - - 30685200.00 - 30685200.00
Lease liabilities - 152753817.53 196567725.23 104678613.82 454000156.58
Total 4218889251.16 154083817.53 231242925.23 157161280.49 4761377274.41
(3) 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 Group to
fair value interest rate risk and cash flow interest rate risk respectively. The Group 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 Group uses interest rate swaps to hedge interest rate risk if necessary.As at 30 June 2026 with other variables held unchanged had the borrowing rate calculated at
the floating interest rate risen or fallen by 100 basis points (The Group had no borrowings with
floating interest rates in June 2026) the Group's profit would have decreased or increased by
RMB0.00. The management considers that 100 basis points reasonably reflects a reasonable
range of possible changes in interest rate over the next year.
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of financial
instruments fluctuates due to the change of foreign exchange rate.The Group 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 Group did not enter into any forward foreign exchange
contracts or currency swap contracts.The currency risk faced by the Group 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:
June 2026
USD/EUR exchange
rate Net profit or loss
Increase/(decrease)
Item in other
Total equity
comprehensive
Increase/(decrease) % Increase/(decrease) income net of tax Increase/(decrease)
Weaker RMB
against USD 5% 23945914.21 4403973.22 28349887.44
Stronger RMB
against USD -5% -23945914.21 -4403973.22 -28349887.44
Weaker RMB
against EUR 5% 886929.75 1237333.18 2124262.93
Stronger RMB
against EUR -5% -886929.75 -1237333.18 -2124262.93
2025
USD/EUR exchange
rate Net profit or loss
Increase/(decrease)
in other Total equity Item comprehensive
Increase/(decrease) % Increase/(decrease) income net of tax Increase/(decrease)
Weaker RMB
against USD 5% 42029257.12 11449078.16 53478335.28
Stronger RMB
against USD -5% -42029257.12 -11449078.16 -53478335.28
Weaker RMB
against EUR 5% 828850.62 802122.99 1630973.61
Stronger RMB
against EUR -5% -828850.62 -802122.99 -1630973.61
(3) Price risk
The Group’s exposure to price risk is the risk arising from changes in the fair value of financial
assets and liabilities held for trading classified as financial assets and liabilities at fair value
through profit or loss. The Group manages this exposure by maintaining a portfolio of
investments with different risks.The table below illustrates the sensitivity of the Group’s net profit or loss and other
comprehensive income net of tax to every 5% change in the fair value of financial assets held for
trading based on the carrying amounts as at the balance sheet date with all other variables held
constant.June 2026
Financial assets Increase/(decrease) in other
held for trading Net profit or loss comprehensive income net Total equity Item of tax
Carrying amount Increase/(decrease) Increase/(decrease) Increase/(decrease)
Financial assets held
for trading
Financial assets at
fair value through 3259490059.08 134163438.73 134163438.73
profit or loss
Semi-Annual Report
2025
Increase/(decrease)
Financial assets held in other
Item for trading
Net profit or loss comprehensive Total equity
income net of tax
Carrying amount Increase/(decrease) Increase/(decrease) Increase/(decrease)
Financial assets held
for trading
Financial assets at
fair value through 2825378695.56 116209580.82 - 116209580.82
profit or loss
2. Capital management
The primary objective of the Group’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 Group 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 Group
may adjust dividend payments return capital or issue new shares to shareholders. The Group is
not subject to external mandatory capital requirements. No changes in the objectives policies or
processes for managing capital were made in the first half of 2026 and in 2025.The Group monitors capital using an asset-liability ratio which is calculated by dividing total
liabilities by total assets. The Group’s policies are designed to maintain the ratio at a reasonable
level. The asset-liability ratio of the Group as at the balance sheet date is as follows:
Item 30 June 2026 31 December 2025
Total assets 18971905602.01 18404858027.22
Total liabilities 6480207406.08 6112276598.33
Asset-liability ratio 34.16% 33.21%
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
Carrying amount Cumulative fair value
related to hedged items hedging adjustments of Some sources of
The impact of hedge
Item hedged items included hedging effectiveness accounting on a and hedging company’s financial
instruments in recognised carrying and ineffectiveness amounts 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
Transfer Nature of financial Amount of financial Derecognition Basis for judgment on termination method assets transferred assets transferred of confirmation
Bill Retain substantially all of its risks
endorseme Notes Receivable 6115168.48 Not terminated and rewards including default risks nt associated therewith
Bill
endorseme Receivables 34531845.46 Derecognition Substantially all risks and rewards
nt financing have been transferred
Total 40647013.94
(2) Financial assets derecognised due to transfers
√Applicable ?N/A
Unit: RMB
Item Methods of transferring Amount of financial assets Gains or losses related to financial assets derecognised derecognition
Receivables financing Bill endorsement 145090410.80
Total 145090410.80
(3) Asset transfer financial assets that continue to be involved
?Applicable √N/A
Other description
Semi-Annual Report
XIII. Fair Value Disclosure
1. Closing Fair Value of Assets and Liabilities Measured with Fair Value
Unit: RMB
Closing fair value
Item Measurement of Measurement of Measurement of
fair value at first fair value at fair value at third Total
level second level level
I. Continuous fair value
measurement -- -- -- --
(I) Financial assets held for
trading 3259490059.08 3259490059.08
1. Financial assets at fair value
through profit or loss 3259490059.08 3259490059.08
Receivables financing 56001074.45 56001074.45
Other non-current financial
assets 25268611.39 73603810.38 98872421.77
Total assets continuously
measured at fair value 3340759744.92 73603810.38 3414363555.30
II. Non-continuous fair value
measurement -- -- -- --
2. Continuous and Non-Continuous Measurement Items of Fair Value at First Level and
Recognition Basis for Market Price
3. Continuous and Non-Continuous Measurement Items of Fair Value at Second Level
Qualitative and Quantitative Information on Valuation Techniques Adopted and Important
Parameters
The Group 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 Group 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 Group 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.
4. Continuous and Non-Continuous Measurement Items of Fair Value at Third Level Qualitative
and Quantitative Information on Valuation Techniques Adopted and Important Parameters
The Group’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 Group’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 Group 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. Continuous Measurement Items of Fair Value at Third Level Adjustment Information
between Opening and Closing Carrying Amount and Sensitivity Analysis of Unobservable
Parameters
6. For Continuous Measurement Items of Fair Value if There is a Conversion between Different
Levels in Current Period the Reasons for the Conversion and the Policies for Determining the
Conversion Time Point
7. Valuation Technology Change and Reason of Change in Current Period
8. Fair Value Information of Financial Assets and Liabilities not Measured at Fair Value
9. Others
XIV. Related Parties and Transactions
1. Parent Company of the Company
Shareholding Voting right
Parent company Registration Business nature Registered ratio of the ratio of the name place capital parent company parent company
in the Company in the Company
Equity
Winner Group
Limited Cayman Islands
investment and HKD
management 1143000.00 69.75% 69.75%
business
Parent company of the Company
The ultimate controlling party of the Company is Li Jianquan.Other description:
2. Subsidiaries of the Company
See Note "X. Interests in other entities".
3. Investment in Associates and Joint Ventures
See the note "X. Interests in other entities" for important cooperative enterprises or joint ventures
of the Company.Semi-Annual Report
Other cooperative enterprises or joint ventures that made related party transactions with the
Company in the current period or formed the balance of related party transactions with the
Company in the previous periods are as follows:
Name of cooperative enterprise or joint venture Relationship with the Company
Company S Cooperative enterprise
Chengdu Winner Likang Medical Products Co. Ltd. Cooperative enterprise
Hubei Xianchuang Technology Co. Ltd. Cooperative enterprise
Zhejiang Shiyou Medical Materials Co. Ltd. Cooperative enterprise
Other description
4. Other Related Parties
Name of other related parties Relationship of other related parties with the Company
Glory Ray Holdings Limited A company controlled by the actual controller
Glory Ray Limited A company controlled by the actual controller through Glory Ray Holdings
Beijing Sequoia Xinyuan Equity Investment Center
(limited partnership) Shareholder of the Company
Shenzhen Capital Group Co. Ltd. Shareholder of the Company
Chengdu Winner Likang Medical Products Co. Ltd. Joint venture with 49% equity hold by the Company
GRI-Alleset India Pvt Ltd Controlled by minority shareholders of GRI
Hubei Zhuoling Packaging Co. Ltd. A company controlled by close family members of the Company's key managers
Company S Cooperative enterprise
Huang Jun Original shareholder and original director of Winner Medical (Hunan)
Lixian SHRCB Rural Bank Co. Ltd. A company in which Zheng Datian Vice Chairman of Winner Medical (Hunan) serves as a director
Jingyun Biotechnology (Shanghai) Co. Ltd. A company actually controlled by Wu Kangping a shareholder of Longterm Medical
Shenzhen Nine Stars Printing and Packaging Group A company controlled by the final controller of
Co. Ltd. Winner Guilin before merge
Shenzhen Shengtianning Medical Device Co. Ltd. A company controlled by the actual controller of Junjian Medical before merge
Shenzhen Zhengjun Medical Device Co. Ltd. A company controlled by the actual controller of Junjian Medical before merge
Zhejiang Kanglidi Medical Articles Co. Ltd. A company actually controlled by Wu Di a shareholder of Longterm Medical
ZheJiang Longmed Medical Technology Co. Ltd. A company actually controlled by Wu Di a shareholder of Longterm Medical
ZheJiang Longrising Medical New Materials Co. Ltd. A company actually controlled by Wu Kangping a shareholder of Longterm Medical
Zheng Junhui Controlling shareholder and actual controller of Junjian Medical before merger
Wu Kangping Huang Lepei Wu Di Controlling shareholder of Longterm Medical before merger and its current minority shareholder
Cao Wensong Zhang Yuqing Controlling shareholder of Shanghai Hongsong before merger and its current minority shareholder
Name of other related parties Relationship of other related parties with the Company
Guilin Golden Eagle Latex Technology Co. Ltd. Minority shareholders of Guilin Latex former shareholders of Jingzhou Latex
James Michael Mabry Shareholder of GRI before merger and its current minority shareholder
Min Tang Shareholder of GRI before merger and its current minority shareholder
Martin Dean Paugh Shareholder of GRI before merger and its current minority shareholder
John Brian Steward Shareholder of GRI before merger and its current minority shareholder
Mark Steven Fellows Shareholder of GRI before merger and its current minority shareholder
Other description
5. Connected Transaction
(1) Related party transactions of sales and purchases of goods and provision and receipts of
services
Purchase of goods/acceptance of services
Unit: RMB
Whether Amount
Related party Connected
Amount Approved the
transaction content incurred in transactio transaction
incurred in
current period n quota quota is previous
exceeded period
Chengdu Winner Likang Purchasing goods
Medical Products Co. Ltd. or services 3738.40 No 22153.50
Shenzhen Nine Stars Printing Purchasing goods
and Packaging Group Co. Ltd. or services 157765.23 No 915280.30
Zhejiang Kanglidi Medical Purchasing goods
Articles Co. Ltd. or services 20835.75 No
ZheJiang Longrising Medical Purchasing goods
New Materials Co. Ltd. or services 0.00 No 535459.40
ZheJiang Longmed Medical Purchasing goods
Technology Co. Ltd. or services 304256.17 No 103600.00
Guilin Golden Eagle Latex Purchasing goods
Technology Co. Ltd. or services 10550.73 No 496956.32
Hubei Zhuoling Packaging Co. Purchasing goods
Ltd. or services 10419437.82 No 9685422.08
Zhejiang Shiyou Medical Purchasing goods
Materials Co. Ltd. or services 17275068.38 No 0.00
Company S Purchasing goods or services 2170713.42 No 0.00
GRI-ALLESET INDIA PVT Purchasing goods
LTD or services 2064863.72 No
Semi-Annual Report
Selling commodities/offering labor
Unit: RMB
Related party Connected Amount incurred in Amount incurred in transaction content current period previous period
Chengdu Winner Likang Medical Sell of goods or
Products Co. Ltd. services 2148771.48 882360.68
ZheJiang Longmed Medical Technology Sell of goods or
Co. Ltd. services 82176.80 252342.87
Zhejiang Kanglidi Medical Articles Co. Sell of goods or
Ltd. services 1251435.19 2163810.63
Company S Sell of goods or services 13033906.35 5377133.21
GRI-Alleset India Pvt Ltd Sell of goods or services 407043.17 470555.41
Related party transactions of sales and purchases of goods and provision and receipts of services
(2) Entrusted/contracted activities and delegated/outsourced activities with related party
Entrusted/contracted activities:
Unit: RMB
Name of Name of Fiduciary / Pricing basis
Fiduciary
income /
entrusting entrusting Entrusted / Fiduciary / of fiduciary
party / party / contracting contracting
contracting income / contracting termination income
subcontractor contractor asset type start date date contracting income recognised in current period
Associated fiduciary / contracting
Delegated/outsourced activities:
Unit: RMB
Name of Name of Entrusting / Pricing basis Trusteeship /
entrusting entrusting Entrusting / Entrusting / subcontracting of trusteeship subcontracting
party / party / subcontracting subcontracting termination / fee recognised
subcontractor contractor asset type start date date subcontracting in current fee period
Associated management / subcontracting
(3) Related-party lease
The Company as the lessor:
Unit: RMB
Type of leased Lease income Lease income Name of lessee assets recognised in the current recognised in the period previous period
Chengdu Winner Likang Medical
Products Co. Ltd.Note 1* Plant 845023.26 968646.36
Note: Note 1* The rental income amount represents the unrealized finance income for the year
The Company as the lessee:
Unit: RMB
Simplified
processing of Variable lease
short-term leases payments not Interest expenses
and rental included in the Rent paid incurred on lease Right-of-use
Name Type expenses of low-
measurement of
the lease liabilities
assets increased
of of value asset leases
lessor leased (if applicable)
liabilities
assets
Amount for the Amount for the Amount for the Amount for the Amount for the
current period current period current period current period current period
Amount for the Amount for the Amount for the Amount for the Amount for the
prior period prior period prior period prior period prior period
Related-party lease description
(4) Related-party guarantee
The Company as the guarantor
Unit: RMB
Whether the
Secured party Amount guaranteed Guarantee start date Guarantee maturity date guarantee has been fulfilled
The Company as guaranteed party
Unit: RMB
Whether the
Guarantor Amount guaranteed Guarantee start date Guarantee maturity date guarantee has been fulfilled
Related-party guarantee
(5) Related party loan at call
Unit: RMB
Related party Borrowing amount Start date Maturity date Description
Borrowing
Lending
(6) Related party asset transfers and debt restructuring
Unit: RMB
Related party Connected transaction Amount incurred in Amount incurred in content current period previous period
Semi-Annual Report
(7) Compensation of key management personnel
Unit: RMB
Item Amount incurred in current period Amount incurred in previous period
Compensation of key management
personnel 6918458.09 9380052.75
(8) Other connected transactions
Item 30 June 2026 31 December 2025
Related party fund lending (Note 1) 28708200.00 30685200.00
Note: It represents an interest-free loan from the controlling shareholder - Winner Group Limited
to Pan-China (H.K.). For details please refer to Note VII.48.
6. Accounts Receivable and Payable By Related Parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Project name Related party
Book balance Provision for Book balance Provision for bad debts bad debts
Accounts
receivable GRI-Alleset India Pvt Ltd 12295144.79 7818714.48 12910902.74 8620320.59
Accounts Zhejiang Kanglidi Medical
receivable Articles Co. Ltd. 1732396.07 86619.80 1906824.00 95341.20
Accounts Chengdu Winner Likang
receivable Medical Products Co. Ltd. 443638.73 22181.94 839283.13 41964.16
Accounts
receivable Company S 14961373.87 748370.82 4199677.24 209983.86
Other GRI-ALLESET INDIA PVT
receivables LTD 4917703.07 4913674.41 5075034.33 5058092.23
Other
receivables Company S 4010984.13 200549.21 4010984.13 200549.21
Advances to
suppliers Company S 31394.07
Advances to GRI-ALLESET INDIA PVT
suppliers LTD 13092413.81 9676637.38
Non-current
assets due Chengdu Winner Likang 4836676.55 4707526.63
within a year Medical Products Co. Ltd.Long-term Chengdu Winner Likang
receivables Medical Products Co. Ltd. 27217926.08 26502052.74
Other non- Guilin Golden Eagle Latex
current assets Technology Co. Ltd. 283500.00 96100.00
Other non-
current assets Company S 2658849.64
(2) Payables
Unit: RMB
Project name Related party Closing balance Opening balance
Accounts payable Chengdu Winner Likang Medical Products Co. Ltd. 312.93 9987.27
Accounts payable Hubei Zhuoling Packaging Co. Ltd. 7130101.88 7153560.05
Accounts payable Shenzhen Nine Stars Printing and Packaging Group Co. Ltd. 157521.09 325353.96
Accounts payable Zhejiang Kanglidi Medical Articles Co. Ltd. 0.00 14557.20
Accounts payable ZheJiang Longmed Medical Technology Co. Ltd. 270168.35 46346.46
Accounts payable Guilin Golden Eagle Latex Technology Co. Ltd. 426070.00 455825.00
Accounts payable Company S 916975.86 5717843.05
Contract Liabilities Company S 20859.06 21526.40
Contract Liabilities ZheJiang Longmed Medical Technology Co. Ltd. 984.00 43043.81
Long-term payable Winner Group Limited 25958339.05 26994520.77
Other payables Zhejiang Shiyou Medical Materials Co. Ltd. 3992245.72 10.23
Other payables Company S 0.00 281234.11
Other non-current
liabilities Minority shareholders of GRI 411966094.33 387682358.99
Dividends payable Winner Group Limited 121984316.10
7. Related Party Commitment
8. Others
XV. Share-Based Payments
1. Share-Based Payments
√Applicable ?N/A
Unit: RMB
Granted in the Exercised in the Unlocked in the current Invalidated in the current
Grant object current period current period period period
category
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Management
personnel 308160.00 5336142.92 1306040.00 22615576.62
Sales
personnel 241760.00 4186350.96 1120640.00 19405163.54
R&D
personnel 91200.00 1579232.32 227800.00 3944617.59
Total 641120.00 11101726.20 2654480.00 45965357.75
Semi-Annual Report
Share options or other equity instruments outstanding at period end
√Applicable ?N/A
Stock options outstanding at the end of the Other equity instruments outstanding at the
Grant object period end of the period
category Range of exercise Remaining Range of exercise Remaining
prices contractual term prices contractual term
Management
personnel RMB 21.5 / share 3 months RMB 14.69 / share 34.5 months
Sales personnel RMB 21.5 / share 3 months RMB 14.69 / share 34.5 months
R&D personnel RMB 21.5 / share 3 months RMB 14.69 / share 34.5 months
Other description
2. Equity-Settled Share-Based Payments
√Applicable ?N/A
Unit: RMB
Method for determining the fair value of equity Calculated based on the agreed stock price and the
instruments on the grant date Black-Scholes model
Significant parameters of determining the fair value of Dividend yield expected volatility historical
equity instruments on the grant date volatility risk-free interest rate expected term of the share options and weighted average share price
Basis for the determination of the number of viable
equity instruments The vesting conditions are expected to be satisfied.Reasons for significant differences between the
current and previous estimates None
Accumulated amount of equity-settled share-based
payments recorded in capital reserves 128473133.74
Total amount of expenses recognised by equity-settled
share-based payments in current period -4401178.34
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 ordinaryshares repurchased in itsspecial
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 underlyingshares 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 underlyingshares are transferred to
the ESOP. The vesting proportions will be 30% 30% and 40% of the total number ofshares
under the ESOP respectively.
(2) 2024 Class II Restricted Share Incentive Scheme
On 20 August 2025 the Company held the 7th meeting of the fourth Board of Directors and the
7th meeting of the fourth Board of Supervisors which reviewed and approved the Proposal on
Adjusting the Grant Price of the 2024 Restricted Share Incentive Plan. The grant price of this
incentive plan was adjusted due to equity distribution implemented by the Company. Upon
completion of this adjustment the grant price for both the initial and reserved restricted shares
under this incentive plan was adjusted from RMB15.39 per share to RMB14.69 per share.On 12 November 2025 the Company held the 9th meeting of the fourth Board of Directors
which reviewed and approved the Proposal on the Grant of Restricted Shares to Participants of
2024 Restricted Share Incentive Scheme granting 500000 reserved restricted shares to 13
participants.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
initial grant portion shall be vested in three tranches to respective participants upon the
performance assessment during the vesting period. The reserved grant portion shall be vested in
two tranches to respective participants upon the performance assessment during the vesting
period. Specific vesting arrangements are detailed in the relevant announcements disclosed by
the Company on the CNINFO website.
3. Cash-Settled Share-Based Payments
?Applicable √N/A
4. Share-Based Payments in Current Period
√Applicable ?N/A
Unit: RMB
Grant object category Equity share-based payment expense Cash share-based payment expense
Management personnel -2579571.29
Sales personnel -1505675.73
R&D personnel -315931.32
Total -4401178.34
Other description
Semi-Annual Report
5. Modifications and Terminations of Share-Based Payments
None
6. Other Information
XVI. Commitment and Contingencies
1. Important Commitment Issues
Significant commitments existing at the balance sheet date
Item 30 June 2026 31 December 2025
Capital commitments 171618782.31 176386066.44
Total 171618782.31 176386066.44
2. Contingencies
(1) Significant contingencies existing at the balance sheet date
As at 30 June 2026 the Company had no significant contingent matters requiring disclosure.
(2) In cases where the Company has no significant contingencies requiring disclosure this fact
should also be disclosed.The Company confirms that there are no significant contingencies that require disclosure.
3. Others
XVII. Post-Balance Sheet Events
1. Important Non-Adjustment Items
Unit: RMB
Reasons for influence
Item Description Influence number of financial position and operating results number cannot be estimated
2. Profit Distribution
Declared dividend per 10 shares after
approval (RMB Yuan) 5.00
Bonus shares to be distributed per 10
shares (shares)
Declared capitalisation shares per 10 shares
after approval (shares) -
Declared dividend per 10 shares after
approval (RMB Yuan) 5.00
Declared bonus shares per 10 shares after
approval (shares)
Declared capitalisation shares per 10 shares
after approval (shares) -
The Company's profit distribution plan for the first half of 2026 is
as follows: based on 574924166 shares representing the total
share capital of 582970928 shares as of 21 August 2026 less
8046762 shares held in the special securities account for
repurchase the Company will distribute a cash dividend of
RMB5.0 (tax inclusive) for every 10 shares to all shareholders
with an estimated total cash dividend of RMB287462083.00 (tax
Profit distribution plan inclusive). No bonus shares will be issued and no shares will be
converted from capital reserves. During the period from the
disclosure of the profit distribution plan through its
implementation if the total number of shares entitled to the
distribution changes the Company will make corresponding
adjustments based on the principle that the cash dividend per
share remains unchanged while the total cash dividend amount is
adjusted accordingly.
3. Sales Return
4. Other Post-Balance Sheet Events
Semi-Annual Report
XVIII. Other Significant Events
1. Correction of Prior Period Errors
(1) Retrospective restatement
Unit: RMB
Content of accounting Processing Report item name of each affected Cumulative
error correction procedures comparison period influence number
(2) Prospective application
Content of accounting error Reason for adopting prospective
correction Approval procedures application
2. Debt Restructuring
3. Assets Replacement
(1) Exchange of non-monetary assets
(2) Other asset replacement
4. Pension Plan
5. Discontinued Operation
Unit: RMB
Item Revenue Cost Total profit Income Tax Net
Profit from discontinued operations
Expenses profit attributable to the owners of parent company
Other description
6. Segment Information
(1) Determination basis and accounting policy of reporting segment
According to its internal organizational structure management requirements and internal
reporting system the Company has two reportable segments: medical consumables and
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 the segments are distributed among the segments in
proportion to the income (as determined by the Company). Assets are allocated according to the
operations of a segment and the location of the assets. Liabilities of a segment include liabilities
attributable to that segment arising from the operations of a segment. If expenses related to
liabilities shared by multiple operating segments are allocated to those operating segments such
shared liabilities are also allocated to those operating segments.
(2) Financial information of reporting segments
Unit: RMB
Medical
Item consumables Consumer goods Unallocated Offset between Total
(segment 1) (Segment 2) segments
Revenue 2641988399.38 2844222859.14 5486211258.52
Operating costs 1628155047.66 1170012868.47 2798167916.13
Impairment
losses of assets
and credit 13798348.53 30723103.04 44521451.57
impairment
losses
Depreciation
and 95867110.42 125949742.04 221816852.46
amortisation
Operating
profit/(loss) 188303377.34 403116557.85 73598374.59 665018309.78
Non-operating
income and -2650767.72 -2650767.72
expenses
Assets and
liabilities
Total assets 7824872164.14 4035028857.12 7112004580.75 18971905602.01
Total liabilities 2001278989.44 1260733362.41 3218195054.23 6480207406.08
(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 shall 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) Project overview
On 6 April 2017 the Group and Shenzhen Galaxy Real Estate Development Co. Ltd. ("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 land parcel number is A819-0123. The land area is 29064.49
m2 and the current use is industrial land. According to the statutory plan of No.402-19&20&21
Bao'an District Shenzhen City [Pinus tabulaeformis area] the planned use of this plot is second-
class residential land. The land has been registered for title with a construction area of 36625.89
m2 used for office plant and dormitory. The Group 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
second office building the first to sixth floors of the third dormitory building and the first to
sixth floors of the fourth dormitory building have been mortgaged at present.
(2) Cooperation mode
The Group 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 underlying
plot and buildings is approved as an urban renewal unit plan Galaxy Real Estate shall discuss
with the Group among others the specific transformation and development intensity planned
Semi-Annual Report
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.Galaxy Real Estate will pay the cooperation consideration to the Group through relocation
compensation payments. The Group voluntarily chooses a relocation compensation method that
combines monetary compensation and title exchange (relocation). Specifically: 1) the monetary
compensation amounts 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) Project 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.After the Company and Xingda Company signed the Agreement on Relocation Compensation
and Resettlement for Urban Renewal Units of the Winner Industrial Park in Longhua District in
Shenzhen and the Relinquishment of Real Estate Rights Statement and other relevant documents
both parties actively promoted the execution of the transaction. The Project received the Reply
Letter from the Shenzhen Longhua District Urban Renewal and Land Preparation Bureau on the
Approval Status of the "Urban Renewal Unit Planning of Winner Industrial 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 Company on 17 July 2023.The two parties signed the Transfer Confirmation Letter and settled utility fees. Then Xingda
Company began to demolish old buildings.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 majeure or delays caused by changes in government policies and approvals
during the above period.On 3 April 2026 the Company and Xingda Company signed the Land Acquisition Agreement
with the relevant local government authorities. Xingda Company is currently applying for
procedures regarding the contractual allocation of land to obtain a contract for the grant of state-
owned construction land use rights. Subsequently Xingda Company will advance land
development and construction work in accordance with the relevant processes prescribed by the
government.As at 30 June 2026 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 2026 the land had not yet been transferred and
was recognised as other non-current assets.
7.2 Heyuan Investment and Construction Project (Heyuan Project)
(1) Problem background
In 2016 as guided and encouraged by the Shenzhen Longhua District Committee and District
Government the Group 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 Group and the People’s Government of Zijin County
of Heyuan City signed the Agreement on the Investment and Construction of Medical Kit andCotton-Based Daily Necessities Production Project (hereinafter referred to as the “InvestmentAgreement”) with a construction land area of 200000 square metres.After the project was signed and started construction the government required all construction
projects under construction in Zijin Linjiang Industrial Park to stop due to land conflicts between
the project site and the planned Heyuan East Station of Jiangxi-Shenzhen High-speed Railway
and the High-speed Railway New Town. Meanwhile the relevant land use procedures were
suspended.
(2) Project 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 to the public from 22 June
2019 to 22 July 2019. According to the final publicity content 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 overlap with the project land of Winner Medical (Heyuan).In October 2019 the Company signed a tripartite agreement with the People’s Government of
Zijin County and the Management Committee of Heyuan Jiangdong New District to clarify the
overall resolution plan. The land used for Heyuan Project and its above-ground 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 Ganjiang New Area International Arbitration Court 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
Semi-Annual Report
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.As at 30 June 2026 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
RMB334.5 million. The Company also handed over the project land above-ground buildings
equipment and facilities and relevant supporting materials to the People's Government of Zijin
County. Outstanding compensation of RMB215 million was recognised as other receivables at
the end of the Reporting Period.
8. Others
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 489029183.95 455408160.41
1 to 2 years 12472290.90 14675943.73
2 to 3 years 2075365.47 575226.99
Over 3 years 3473886.93 3305977.97
3 to 4 years 970512.71 815936.73
4 to 5 years 163701.20 171106.91
Over 5 years 2339673.02 2318934.33
Total 507050727.25 473965309.10
(2) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts
Proportion Provision Carrying amount Amount Amount Amount Proportion Provision
Carrying amount
(%) ratio (%) (%) Amount ratio (%)
Accounts
receivable
with
provision
for bad 121702.53 0.03% 121702.53 100.00% 0.00
debts made
on an
individual
basis
Including:
Accounts
receivable
with
provision
for bad 507050727.25 100.00% 20800465.38 4.10% 486250261.87 473843606.57 99.97% 20539154.07 4.33% 453304452.50
debts made
on a
collective
basis
Including:
Aging
group 380475914.85 75.04% 20800465.38 5.47% 359675449.47 396227276.37 83.60% 20539154.07 5.18% 375688122.30
No credit
risk group 126574812.40 24.96% 0.00% 126574812.40 77616330.20 16.38% 0.00% 77616330.20
Total 507050727.25 100.00% 20800465.38 4.10% 486250261.87 473965309.10 100.00% 20660856.60 4.36% 453304452.50
Semi-Annual Report
Provision for bad debts of aging group:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 364715405.51 18235770.28 5.00%
1 to 2 years 12472290.90 1247229.09 10.00%
2 to 3 years 2075365.47 622609.64 30.00%
3 to 4 years 970512.71 485256.36 50.00%
4 to 5 years 163701.20 130960.96 80.00%
Over 5 years 78639.06 78639.06 100.00%
Total 380475914.85 20800465.38
Description of the basis for determining provision for bad debts on a collective basis:
Provision for bad debts is made based on the general expected credit loss (ECL) model:
?Applicable √N/A
(3) Provision for bad debts accrued reversed or recovered
Changes in provision for bad debts are as follows:
Unit: RMB
Amount of change in current period
Category Opening balance Recovery or Closing balance Accrual reversal Write-off Others
Provision for bad
debts of accounts 20660856.60 2138788.01 1997004.23 2175.00 20800465.38
receivable
Total 20660856.60 2138788.01 1997004.23 2175.00 20800465.38
Significant recovery or reversal of provision for bad debts:
Unit: RMB
Amount
Unit name recovered or Reasons for Method of Basis and rationale for proportion of original
reversed reversal recovery provision for bad debts accrued
(4) Accounts receivable actually written off
Unit: RMB
Item Amount written off
Accounts receivable actually written off 2175.00
Significant write-off of accounts receivable:
Unit: RMB
Nature of Amount Reasons for Write-off Unit name procedures Whether caused by related-accounts written off write-off performed party transactions
Notes on the write-off of accounts receivable:
(5) Top 5 accounts receivable and contract assets with closing balances by debtor
Unit: RMB
Closing balance Closing Closing balance Proportion of total
Closing balance of bad
balance of of accounts closing balance of debt provision for Unit name of accounts contract receivable and accounts receivable accounts receivable and receivable assets contract assets and contract assets impairment provision for contract assets
First 82139750.84 82139750.84 16.20% 0.00
Second 33985015.00 33985015.00 6.70% 1730296.63
Third 28638676.47 28638676.47 5.65% 1431933.82
Fourth 13414461.31 13414461.31 2.65% 0.00
Fifth 13015937.40 13015937.40 2.57% 650796.87
Total 171193841.02 171193841.02 33.76% 3813027.32
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 253419300.66 250844030.72
Total 253419300.66 250844030.72
Semi-Annual Report
(1) Interest receivable
1) Classification of interest receivable
Unit: RMB
Item Closing balance Opening balance
2) Important overdue interest
Unit: RMB
Borrower Closing balance Overdue time Overdue reason
Whether there is impairment and its
judgment basis
Other description:
3) Disclosure by bad debt provision accrual method
?Applicable √N/A
4) Provision for bad debts accrued reversed or recovered
Unit: RMB
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or balance reversal Write-off Other changes
Significant recovery or reversal of provision for bad debts:
Unit: RMB
Amount
Unit name recovered or Reasons for Method of Basis and rationale for original bad debt
reversed reversal recovery provision ratio
Other description:
5) Interest receivable actually written off
Unit: RMB
Item Amount written off
Significant write-off of interest receivable:
Unit: RMB
Nature of Write-off
Unit name other Amount Reasons for Whether caused by related-
receivables written off write-off
procedures
performed party transactions
Notes on write-off interest receivable:
Other description:
(2) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or invested unit) Closing balance Opening balance
2) Significant dividends receivable aged over 1 year
Unit: RMB
Project (or invested Closing balance Aging Reason for non- Whether there is impairment unit) recovery and its judgment basis
3) Disclosure by bad debt provision accrual method
?Applicable √N/A
4) Provision for bad debts accrued reversed or recovered
Unit: RMB
Amount of change in current period
Category Opening balance Closing
Accrual Recovery or reversal Write-off Other changes
balance
Significant recovery or reversal of provision for bad debts:
Unit: RMB
Unit name Amount recovered Reasons for Method of Basis and rationale for original bad debt or reversed reversal recovery provision ratio
Other description:
Semi-Annual Report
5) Dividends receivable actually written off
Unit: RMB
Item Amount written off
Significant write-off of dividends receivable
Unit: RMB
Unit Nature of other Amount Reasons for Write-off Whether caused by
name receivables written off write-off procedures performed related-party transactions
Notes on write-off of dividends receivable:
Other description:
(3) Other receivables
1) Classification by nature
Unit: RMB
Nature of other receivables Closing balance Opening balance
Compensation for investment and
construction project of Winner 215155320.00 215155320.00
Medical (Heyuan)
Amounts due from/to related
parties 119706478.53 122793979.20
Deposits and guarantee deposits 17311067.79 19414485.78
Employee pretty cash 578756.95 207660.62
Others 9880174.47 2539999.13
Total 362631797.74 360111444.73
2) Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year inclusive 30154345.75 98493242.48
1 to 2 years 117322131.99 46462882.25
Over 3 years 215155320.00 215155320.00
Over 5 years 215155320.00 215155320.00
Total 362631797.74 360111444.73
3) Disclosure by bad debt provision accrual method
Unit: RMB
Closing balance Opening balance
Category Book balance Provision for bad debts Book balance Provision for bad debts Carrying Carrying
Amount Proportion Provision amount Proportion Provision amount (%) Amount ratio (%) Amount (%) Amount ratio (%)
Provision for bad
debts made on an 215155320.00 59.33% 107577660.00 50.00% 107577660.00 215554919.00 59.86% 107977259.00 50.09% 107577660.00
individual basis
Including:
Provision for bad
debts made on a 147476477.74 40.67% 1634837.08 1.11% 145841640.66 144556525.73 40.14% 1290155.01 0.89% 143266370.72
collective basis
Including:
No credit risk
group 115695494.40 31.90% 0.00% 115695494.40 118782995.07 32.99% 0.00 0.00% 118782995.07
Aging group 14469915.55 3.99% 769283.69 5.32% 13700631.86 6758643.88 1.88% 339410.67 5.02% 6419233.21
Deposits and
guarantee deposits 17311067.79 4.77% 865553.39 5.00% 16445514.40 19014886.78 5.28% 950744.34 5.00% 18064142.44
Total 362631797.74 100.00% 109212497.08 30.12% 253419300.66 360111444.73 100.00% 109267414.01 30.34% 250844030.72
Provision for bad debts made on an individual basis:
Unit: RMB
Opening balance Closing balance
Name
Book balance Provision for Book balance Provision for Provision ratio Reasons for bad debts bad debts (%) provision
Receivables
Zijin County from
People's 215155320.00 107577660.00 215155320.00 107577660.00 50.00% government
Government aged over 5
years
T&L CO. LTD 399599.00 399599.00
Total 215554919.00 107977259.00 215155320.00 107577660.00
Provision for bad debts made on a collective basis:
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision ratio (%)
Within 1 year 13554157.36 677707.87 5.00%
1 to 2 years 915758.19 91575.82 10.00%
Total 14469915.55 769283.69
Semi-Annual Report
Description of the basis for determining provision for bad debts on a collective basis:
Provision for bad debts is made based on the general expected credit loss (ECL) model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts 12-month Lifetime ECLs (not yet Lifetime ECLs (credit- Total
ECLs credit-impaired) impaired)
Balance on 1 January 2026 1290155.01 107977259.00 109267414.01
Opening balance
Accrual 577865.87 577865.87
Recovery or reversal 233183.80 233183.80
Write-off 399599.00 399599.00
Balance on 30 June 2026 1235238.08 107977259.00 0.00 109212497.08
Criteria for stage classification and provision ratio for bad debts
Material changes in balance of provision for bad debts:
?Applicable √N/A
4) Provision for bad debts accrued reversed or recovered
Provision for bad debts:
Unit: RMB
Amount of change in current period
Category Opening balance Recovery or Closing balance Accrual reversal Write-off Others
Provision
for bad 109267414.01 577865.87 233183.80 399599.00 109212497.08
debts
Total 109267414.01 577865.87 233183.80 399599.00 109212497.08
Significant reversal of recovery of provision for bad debts:
Unit: RMB
Unit name Amount recovered Reasons for Method of Basis and rationale for original bad debt or reversed reversal recovery provision ratio
5) Other receivables actually written off
Unit: RMB
Item Amount written off
Write-off of other receivables 399599.00
Significant write-off of other receivables:
Unit: RMB
Unit Nature of other Amount Reasons for Write-off
name receivables written off write-off procedures
Whether caused by related-
performed party transactions
Description of write-off of other receivables:
6) Top 5 other receivables with closing balances by debtor
Unit: RMB
Unit Proportion in total Closing balance
name Nature of other receivables Closing balance Aging other closing of bad debt balance receivable provision
First Receivables related to Over 5 Heyuan project 215155320.00 years 59.33% 107577660.00
Second Related parties within the Group 115695494.40
1 to 2
years 31.90% 0.00
Third Deposits and guarantee Within 1 deposits 15656693.47 year 4.32% 782834.67
Fourth Others 6193340.03 Within 1 year 1.71% 309667.00
Amounts due from related
Fifth parties outside the scope of 4010984.13 Within 1 year 1.11% 200549.21 consolidation of the Group
Total 356711832.03 98.37% 108870710.88
7) Recorded under other receivables due to centralized fund management
Unit: RMB
Other description:
Semi-Annual Report
3. Long-Term Equity Investments
Unit: RMB
Closing balance Opening balance
Item
Book balance Provision for Carrying amount Book balance Provision for impairment impairment Carrying amount
Investment in
subsidiaries 5501395896.74 452807762.97 5048588133.77 5431235747.65 452807762.97 4978427984.68
Investment in
associates
and joint 20630264.65 20630264.65 20987023.45 20987023.45
ventures
Total 5522026161.39 452807762.97 5069218398.42 5452222771.10 452807762.97 4999415008.13
(1) Investment in subsidiaries
Unit: RMB
Opening Increase or decrease in current period Beginning Closing balance Closing
Invested unit balance (carrying balance of Further Capital Provision provision for (carrying
balance of
amount) impairment impairment investment reduction
for Others amount)
impairment provision
Winner
Medical 268338230.89 264571.16 268073659.73
(Huanggang)
Winner
Medical 27704544.82 144311.53 27560233.29
(Jingmen)
Shenzhen
Purcotton 151231302.70 546310.11 150684992.59
Winner
Medical 34303240.34 210454.32 34092786.02
(Chongyang)
Winner
Medical 337013824.66 180389.43 336833435.23
(Jiayu)
Winner
Medical 40389951.53 216467.33 40173484.20
(Tianmen)
Winner
Medical (Hong 1456720.00 1456720.00
Kong)
Winner
Medical 18749825.23 48103.83 18701721.40
(Yichang)
Winner
Medical 4086994.48 4086994.48
Malaysia
Winner
Medical 100000000.00 100000000.00
(Heyuan)
Winner
Medical 800461783.48 144311.53 800317471.95
(Wuhan)
PureH2B 150000000.00 150000000.00
Zhejiang
Longterm 727540000.00 727540000.00
Guilin Latex 430592241.74 69908023.73 156337.51 430435904.23 69908023.73
Winner
Medical 523374280.75 228812744.76 135891.14 523238389.61 228812744.76
(Hunan)
Junjian
Medical 192076963.91 24051.93 192052911.98
Shanghai
Hongsong 39329721.41 36077.89 39293643.52
Pan-China
(H.K.) 1285531327.74 69025000.00 1354556327.74
GRI 334025.48 242426.80 576452.28
Jinliang
Services 2000000.00 2000000.00
Winner Digital 1000000.00 1000000.00
Total 4978427984.68 452807762.97 72267426.80 2107277.71 5048588133.77 452807762.97
Semi-Annual Report
(2) Investment in associates and joint ventures
Unit: RMB
Increase or decrease in current period
Beginning Opening
Investment
balance of gains and Closing Closing Adjustment of Declared
Invested entity balance provision Further Capital losses other Changes payment Provision
balance balance of
(carrying for recognised (carrying impairment amount) investment reduction by the comprehensive
in other of cash for Others
impairment income equity dividends impairment
amount) provision
equity or profits
method
I. Joint ventures
II. Associates
Chengdu Winner
Likang Medical
Products Co. 20987023.45 -356758.80 20630264.65
Ltd.Subtotal 20987023.45 -356758.80 20630264.65
Total 20987023.45 -356758.80 20630264.65
The recoverable amount is determined according to the higher of the net amount of the assets fair
value subtracted by the disposal costs
?Applicable √N/A
The recoverable amount is determined based on the present value of expected future cash flows
?Applicable √N/A
Reasons for the apparent inconsistency between the aforementioned information and the data
used in impairment testing in prior years or external information
Reasons for the variance between the information utilised in the Company’s impairment testing
in prior years and the actual circumstances of the current year
(3) Other description
4. Revenue and Cost
Unit: RMB
Amount incurred in current period Amount incurred in previous period
Item
Revenue Cost Revenue Cost
Main business 1325307692.12 925554388.04 1321615084.12 924739742.32
Other businesses 92632691.16 4428634.31 85665531.38 5809198.94
Total 1417940383.28 929983022.35 1407280615.50 930548941.26
Breakdown of revenue and cost of sales:
Unit: RMB
Segment 1 Segment 2 Total
Contract
classification Revenue Operating Revenue Operating Revenue Operating Revenue Operating costs costs costs costs
Business type
Including:
Classified by
operating area
Including:
Type of markets or
clients
Including:
Type of contracts
Including:
Classified by
timing of transfer
of goods
Including:
Classified by
contract duration
Including:
Classified by sales
channels
Including:
Total
Information relating to performance obligations:
The nature of Amounts borne by Types of quality
Time to fulfill Important the goods the Is he the the Company that assurance provided
Item performance payment Company main responsible are expected to be by the Company obligations terms promises to
transfer person
refunded to and related
customers obligations
Other description
Information relating to the transaction price allocated to the remaining performance obligations:
The revenue amount corresponding to performance obligations under contracts signed but not
yet fulfilled or not yet fully fulfilled as of the end of this Reporting Period is RMB0.00. Among
them RMB0.00 is expected to be recognised as revenue in the year RMB0.00 is expected to be
recognised as revenue in the year and RMB0.00 is expected to be recognised as revenue in the
year.Semi-Annual Report
Significant contract changes or significant transaction price adjustments
Unit: RMB
Item Accounting treatment Amount of impact on methods revenue
Other description:
5. Investment Income
Unit: RMB
Item Amount incurred in Amount incurred in current period previous period
Long-term equity investment income accounted for
using the cost method 5614438.27
Long-term equity investment gains measured by
employing the equity method -356758.80 213714.71
Investment income from purchasing financial products 11480630.06 21883880.59
Total 11123871.26 27712033.57
6. Others
XX. Further Information
1. Items and Amounts of Non-recurring Gains and Losses
√Applicable ?N/A
Unit: RMB
Item Amount Description
Profit or loss on disposal of non-current assets -1131350.65
Government grants recognised in the current period’s
profit or loss (excluding grants closely related to the
Company’s regular business operations aligned with 21604303.31
national policies and meeting specific criteria with a
continuous impact on the Company’s profit or loss)
Gains and losses from changes in the fair value of
financial assets and liabilities held by non-financial
corporations and gains and losses from the disposal of
financial assets and liabilities excluding effective 48085316.51
hedging operations related to the Company’s regular
business operations
Income and expenditure other than those mentioned
above -1997579.37
Less: Amount affected by income tax 11880929.13
Amount of minority shareholders’ equity affected
(after tax) 3507067.47
Total 51172693.20 --
Details of other items meeting the definition of non-recurring profit or loss:
?Applicable √N/A
There were no other profit or loss items that met the definition of non-recurring profit or loss.Explanation on defining the non-recurring profit or loss items enumerated in the Interpretative
Announcement No. 1 on Information Disclosure of Public Securities Issuing Companies - Non-
recurring Profits and Losses as recurring profit or loss items
√Applicable ?N/A
Item Amount involved (RMB) Reason
Cotton transportation Complies with national policy regulations meets
subsidies established standards and has a continuing impact on profit or loss
Interest income from
large-denomination The Company's routine cash management practices
certificates of deposit with a continuing impact on profit or loss
2. Return on Equity (ROE) and Earnings Per Share (EPS)
Earnings per share
Diluted
Profit before tax Weighted average Basic earnings return on equity per share earnings per
(yuan/share) share (yuan/share)
Net profit attributable to ordinary shareholders of the
Company 4.36% 0.8821 0.8821
Net profit attributable to ordinary shareholders of the
Company after deduction of non-recurring profits and 3.93% 0.7942 0.7942
losses
3. Differences in Accounting Information Prepared under Domestic and Foreign Accounting
Standards
(1) The difference between net profits and net assets in financial statements disclosed according
to the International Accounting Standards (IAS) and Chinese Accounting Standards
simultaneously
?Applicable √N/A
(2) The difference between net profits and net assets in financial statements disclosed according
to the Overseas Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
?Applicable √N/A
(3) Causes for differences in accounting data under domestic and foreign accounting standards.
If the difference adjustment has been made to the data audited by the overseas audit institution
the name of the overseas audit institution shall be indicated
?Applicable √N/A
4. Others
Semi-Annual Report
Appendix: Information on Medical Device Products
(I) Statistics on the Number of Registration Certificates for Medical Devices
Statistics on the number of domestic product registration certificates
Registration
Categories Opening balance Number of additions Number of failures Closing balance
Class I 158 5 1 162
Class II 183 5 2 186
Class III 27 5 0 32
Hong Kong Macao
Taiwan 16 0 0 16
Total 384 15 3 396
Statistics on the number of foreign product registration certificate
Registration
Categories Opening balance Number of additions Number of failures Closing balance
Abroad 481 31 7 505
Note: The opening balances have been revised due to changes in the reporting basis and
applicable rules.(II) Newly Registered Medical Device Certificates in the First Half of 2026
1. Domestic
Serial Registration
number Product categories Certificate owner Date of issuance
1. Eye heat therapy patch Category II Winner Medical Co. Ltd. 21 January 2026
2. Medical pad Category II Winner Medical (Chongyang) Co. Ltd. 28 May 2026
3. Medical hydrogel dressing Category II Winner Medical (Jiayu) Co. Ltd. 10 April 2026
4. Medical nursing pad Category I Winner Medical (Jiayu) Co. Ltd. 22 April 2026
5. Disposable pressure extension Category tube III Winner Medical (Hunan) Co. Ltd.
13 February
2026
6. Disposable light-resistant Category infusion set with needle III Winner Medical (Hunan) Co. Ltd. 11 March 2026
Disposable light-resistant
7. precision filter infusion set with Category III Winner Medical (Hunan) Co. Ltd. 11 March 2026 needle
8. Disposable precision filtered Category infusion set with needle III Winner Medical (Hunan) Co. Ltd. 24 March 2026
9. Disposable precision filtered Category infusion set with needle III Winner Medical (Hunan) Co. Ltd. 24 March 2026
10. Radiation protection collar Category I Winner Guilin Latex Co. Ltd. 06 January 2026
Serial Product Registration number categories Certificate owner Date of issuance
11. Radiation protection cap Category I Winner Guilin Latex Co. Ltd. 06 January 2026
12. Medical radiation protective square towel Category I Winner Guilin Latex Co. Ltd. 06 January 2026
13. Medical radiation protective clothing Category I Winner Guilin Latex Co. Ltd. 20 January 2026
14. Silicone gel umbilical sticker Category II Xi'an Longtemu Medical Technology Co. Ltd. 04 January 2026
15. Disposable intestinal irrigation bag Category II
GRI Medical & Electronics
Technology Co. Ltd. 20 January 2026
2. Abroad
Serial
number Region Certificate No. Name of certificates
Registration Certificate Date of
categories owner Product issuance Validity
08 07
1. Malaysia GC4475826-221708 MDA Certificate Class C
Winner Medical Activated carbon super
Co. Ltd. absorbent pad (green) January January 2026 2031
2. Malaysia GA8409726- MDA Certificate Class A Winner Medical Skin protection film
29 29
224357 Co. Ltd. series January January 2026 2031
3. Saudi MDMA-2-
29
Arabia 2023-0343 MDMA Authorization Number Class C
Winner Medical 08 March
Co. Ltd. Foam dressing March 2026 2029
4. Saudi MDMA-2-
29
Arabia 2023-0343 MDMA Authorization Number Class C
Winner Medical
Co. Ltd. Silicone foam dressing March
08 March
2026 2029
5. Saudi MDMA-2-
29
Arabia 2023-0343 MDMA Authorization Number Class C
Winner Medical Super absorbent pad March 08 March Co. Ltd. 2026 2029
6. Saudi MDMA-2- MDMA Authorization Number Class C Winner Medical Silica gel super absorbent
29
March 08 March Arabia 2023-0343 Co. Ltd. pad 2026 2029
7. Saudi MDMA-2- MDMA Authorization Number Class B Winner Medical Gauze 11 April 26 May Arabia 2026-1567 Co. Ltd. pads/sponges/balls/rolls 2026 2027
21
8. Saudi MDMA-2- Winner Medical 15 April Arabia 2026-1621 MDMA Authorization Number Class A Co. Ltd. Elastic bandage 2026 February 2029
9. Saudi MDMA-2-Arabia 2026-1649 MDMA Authorization Number Class A
Winner Medical
Co. Ltd. Transparent dressing
17 April 17 April
2026 2029
10. Saudi MDMA-2- Winner Medical 17 April 17 April Arabia 2026-1649 MDMA Authorization Number Class A Co. Ltd. Non-woven dressing 2026 2029
11. Saudi MDMA-2- MDMA Authorization Number Class D Winner Medical Silver alginate dressing 17 April 17 April Arabia 2026-1650 Co. Ltd. 2026 2029
12. Saudi MDMA-2- MDMA Authorization Number Class C Winner Medical Activated carbon super 17 May 01 May Arabia 2023-0626 Co. Ltd. absorbent pad 2026 2029
13. Saudi MDMA-2-Arabia 2026-2397 MDMA Authorization Number Class D
Winner Medical
Co. Ltd. Collagen dressing
02 June 02 June
2026 2029
The
14. United UKCA UKCA 752977 FFP2 NR Winner Medical
26 03 March
Kingdom CERTIFICATE Un-valved Co. Ltd.PPE protective masks March
2026 2027
Semi-Annual Report
Serial
number Region Certificate No. Name of certificates
Registration Certificate Date of
categories owner Product issuance Validity
The MHRA
15. United Registration 2026050201489448 Class Ins Winner Medical Silicon scar treatment 02 May 09 July
Kingdom Confirmation Co. Ltd. strips 2026 2028 Letter
The MHRA
16. United Registration Confirmation 2026062501505248 Class Ins
Winner Medical Hydrocolloid roll 26 June 09 July
Kingdom Co. Ltd. 2026 2028 Letter
17. EU CE Certificate CE 735016 FFP2 NR Winner Medical PPE protective masks 25 March 01 April Un-valved Co. Ltd. 2026 2031
G26 067110 EU Production Quality Winner Medical 18. EU Class IIa (Hunan) Co. Disposable sterile 27 May 05 May 0017 Rev.00 Assurance Certificate Ltd. hypodermic syringe 2026 2031
G26 067110 EU Production Quality Winner Medical 19. EU Class IIa (Hunan) Co. Disposable sterile-care 27 May 05 May 0017 Rev.00 Assurance Certificate Ltd. insulin syringe 2026 2031
20. EU G26 067110 EU Production Quality
Winner Medical
Class IIa (Hunan) Co. Disposable self- 27 May 05 May 0017 Rev.00 Assurance Certificate Ltd. destructing syringe 2026 2031
Winner Medical SOL-M products for 31
21. US / / N/A (Hunan) Co. export to the united 24 June 2026 December Ltd. states 2026
GOBON Sterile
22. Brazil 80686369142 ANVISA registration Class II Winner Guilin Latex Co. Ltd. Surgical Gloves
02 March N/A
Prepowdered 2026
23. Brazil 80686369143 ANVISA registration Class II Winner Guilin
GOBON Sterile
Latex Co. Ltd. Surgical Gloves Powder
02 March N/A
free 2026
Products of class I
STERILE: T010201 –
LATEX
EXAMINATION /
TREATMENT
GLOVES
-Latex Examination
Gloves
T010202 –
SYNTHETIC
EXAMINATION /
TREATMENT
GLOVES
European EU Certificate (MDR) Quality -Nitrile Examination
24. Union HZ 2095853-1 Management System Regulation
ClassIs
ClassIIa Winner Guilin Gloves Products of class 01 June 30 May
region (EU) 2017/745 ON Medical Class IIb Latex Co. Ltd. IIa: 2026 2031 Devices T010101 - LATEX
SURGICALGLOVES
-LATEX SURGICAL
GLOVES
T010102 –
SYNTHETIC
SURGICAL GLOVES
-Polyisoprene Surgical
Gloves
Products of class IIb:
U110101 – MALE
CONTRACEPTIVE
DEVICES CONDOMS
-Latex Male Condoms
Zhejiang
Longterm
25. Canada 115372 HYDROCOLLOIDDRESSINGS Class II Medical HYDROCOLLOID 08 May N/A
Technology DRESSINGS 2026
Co. Ltd.Serial
number Region Certificate No. Name of certificates
Registration Certificate Date of
categories owner Product issuance Validity
26. Thailand 69-2-3-2- Certificate of Registration of
16 March 15 March
0002536 Import Class I Molnlycke Basins 2026 2031
24
27. Thailand 69-2-3-2- Certificate of Registration of Class I Molnlycke Trays February
23 February
0002003 Import 2026 2031
28. Thailand 69-2-3-2- Certificate of Registration of Class I Molnlycke Medical Forceps and
13 March 12 March
0002499 Import Clamps 2026 2031
19 18 February
29. Thailand 69-2-3-2- Certificate of Registration of 0001844 Import Class I Molnlycke Sponge Stick
February
2026 2031
GRI MEDICAL
& 19 March 19 March
30. Canada 115082 Medical Device Licence Class II ELECTRONIC
INTRAVITREAL
INJECTION KIT 2026 2027 TECHNOLOGY
CO. LTD
GRI MEDICAL
& 30 March 30 March
31. Canada 115131 Medical Device Licence Class II ELECTRONIC Foley insertion tray 2026 2027 TECHNOLOGY
CO. LTD
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