Deserts andCotton Fields
Stock code: 300888
Environmental, Social and
Governance ReportWinner Medical Co., Ltd.
About This ReportOverview
Abbreviations
This is the second environmental, social and governance (ESG)report and also the fourth corporate social responsibility (CSR)report of Winner Medical Co., Ltd. This report truly and objectivelydiscloses the efforts of Winner Medical and its subsidiaries toperform its corporate social responsibilities in 2023, and focusesmainly on the disclosure of the Company's ESG performance.
Reporting Scope
Reporting Period: January 1, 2023 to December 31, 2023(hereinafter referred to as the "Reporting Period"). Unlessotherwise speci?ed, this report is prepared on an annual basis.
Basis of PreparationTheSustainable Development Goals (SDGs) CompassGRI Sustainability Reporting Standards (GRI Standards）byGlobal Sustainability Standards BoardGuidelines on Corporate Social Responsibility Reporting forChinese Enterprises (CASS-ESG 5.0)by China Academy ofSocial SciencesGuidelines of Shenzhen Stock Exchange on Social Responsibilityof Listed CompaniesThe Guidelines No.2 on Self-Regulation of Companies Listedon Shenzhen Stock Exchange - Standardized Operation ofListed Companies of the ChiNext Market
Guidance on Social Responsibility Reporting (GB/T 36001-2015)
Con?rmation and ApprovalThis report has been approved by the Board of Directors onApril 23, 2024 after being con?rmed by the management.
Report Access
The simplified Chinese version of this report is available forreaders to reference. The electronic version of this report canbe downloaded from our o?cial website (www.winnermedical.cn).
AbbreviationFull NameWinner Medical, theCompany, or "we "
Winner Medical Co., Ltd. (reportingentity)Purcotton
Shenzhen Purcotton Technology Co.,Ltd.Longterm Medical
Zhejiang Longterm Medical TechnologyCo., Ltd.
Winner Medical(Huanggang)
Winner Medical (Huanggang) Co. Ltd.
Winner Medical
(Jingmen)
Jingmen Winner Medical Textile Co.,Ltd.
Winner Medical
(Jiayu)
Winner Medical (Jiayu) Co. Ltd.
Winner Medical(Wuhan)
Winner Medical (Wuhan) Co. Ltd.
Winner Medical(Chongyang)
Winner Medical (Chongyang) Co. Ltd.
Winner Medical(Tianmen)
Winner Medical (Tianmen) Co. Ltd.
Winner Medical(Shenzhen)
Winner Medical (Shenzhen) Co. Ltd.Winner GuilinWinner (Guilin) Latex Products Co., Ltd.
Winner Pingan
Winner Pingan Medical (Hunan) Co.,
Ltd
Message from ChairmanAbout UsESG Management
OutlookIndexESG Key PerformanceIndicatorsFeedback
CONTENTS
CSR Spotlight
Improving Corporate GovernanceOperating in Compliance withLaws and Regulations
Conducting PrudentGovernanceto Build a Solid DevelopmentFoundation
Strengthening R&D CapabilitiesPursuing Premier QualityEnhancing Customer ServiceEnsuring Work SafetyAdvancing Together with Partners
Pursuing Excellenceto Spearhead IndustryAdvancement
Enhancing Environmental ManagementCombating Climate ChangeOptimizing Resource and Energy UseEnhancing Emission ManagementPromoting Green Philosophy
Practicing GreenDevelopmentto Embrace Low-CarbonLifestyle
Keen on Public Welfare and CharityProtecting Employee Rights and InterestsSupporting Employee GrowthCaring for the Life of Employees
Giving Back to the Societyto Build a HarmoniousSociety Together
Fostering a Sustainable BusinessModel for Sound Industry Growth
Message from Chairman
Over thirty-three years for Winner Medical and fifteen for Purcotton, we have gone through four economic cycles, and thrived inchallenging times, beginning with a small piece of gauze and evolving into a national high-tech enterprise that integrates research,development, production, and sales. Our success stems from steadfast adherance to our core principle that "quality is superior topro?t; brand is superior to speed; social responsibility is superior to corporate value, " coupled with a strong commitment to sustainabledevelopment.Committed to the six pillars of a "century-old enterprise," we uphold our culture and values, adhere to leadership driven by products,and pursue excellence in operations. In line with the principle of integrated operations, we ful?l our responsibilities and inspire utmostresilience. At Winner Medical, social responsibility fulfilment is not just a long-term commitment but the inevitable path towardssustainable development.We believe that a symbiotic and mutually prosperous relationship between corporate and social values, the commitment to innovationin social responsibility and the creation of environmentally friendly products, will unlock wider and more diverse opportunities forinnovation, further paving our way towards sustainable development.
Consolidating the Operating Foundation with Responsibility to Pursue Sustainable SuccessWe hold that strategic direction sets our course, brand building energizes our development, integrity wins us trust, corporate culture unitesus all, and a commitment to responsibility builds our foundation for future growth. In 2023, we steadfastly pursued our core strategy:
leading products and excellent operation. In product development, we expanded our product portfolio through innovation and qualityenhancement. Centring around our core technology, pure cotton spunlaced non-woven fabric, we have developed various new productsmade from cotton, such as cotton soft tissues developed through special processing, all-cotton core sanitary napkins, cotton diapers,surgical gowns, surgical kits, and fenestrated sheets, ensuring the health and well-being of consumers. Our innovative foam dressingproduct was included in the Shenzhen standard catalogue for certi?ed medical devices, marking a signi?cant milestone. Our Purcottongauze bath towel, the industry’s ?rst certi?ed towel without softener, set a new standard in product excellence. Operational advanceswere marked by extensive digital transformation and intelligent upgrades, signi?cantly enhancing the automation and e?ciency of ourproduction equipment. Our Model Plant for Intelligent Medical Textile Manufacturing of Winner Medical (Wuhan) Co., Ltd. distinguisheditself as a leading case of intelligent manufacturing in 2023, earning high praise from the Ministry of Industry and Information Technology.
Safeguarding the Ecology and Innovating to Lead Low-carbon DevelopmentWe are committed to developing green products and advocating for the value of sustainability and environmental protection, aiming tomobilize the entire industrial chain to embrace environmental stewardship. Over the past year, we embraced a multifaceted approach.From research and development to production, we conserved significant water resources and reduced emissions using innovativetechnologies and processing techniques like anhydrous processing, gauze washing with atomized water, and plant-based dyeing.Moreover, we actively promoted the construction of green plants. Notably, Winner Medical (Wuhan) earned the "Green Plant" accolade, atestament to its exemplary contributions to energy conservation, emission reduction, recycling, and environmental protection. Our greenpackaging initiative, the Zero Plastic Initiative, replaced plastic bags with 48.05 million non-woven reusable shopping bags, signi?cantlyfurthering our commitment to a better environment.Keeping Society in Mind and Continuously Showing the Strength of CottonWe ?rmly believe that shouldering social responsibility and giving back to our employees and the society are foundational to sustainabledevelopment. In 2023, we actively engaged with the "Power of Purcotton" initiative. Collaborating with our partners across the industrialchain, we worked to overcome challenges, helping to address issues of excess raw material inventory and unsold products. To give backto the society, in December 2023, in response to a 6.2-magnitude earthquake in Jishishan County, Gansu Province, we rapidly dispatchedrescue supplies worth nearly RMB 3 million to aid those a?ected by the disaster. Additionally, our concern for vulnerable groups, includingchildren and the elderly, led us to organize healthcare knowledge sessions at institutions such as Luoba Middle School and BaishidaPrimary School in Shixing County, Shaoguan City, and to provide nursing supplies to nursing homes. The total value of our contributionsover the year amounted to approximately RMB 7 million, demonstrating our dedication to fostering a healthier and more comfortable lifeenriched by the compassionate spirit of Purcotton.Having navigated beyond countless challenges, we are now advancing swiftly and unfettered. The year 2024 unfolds, brimming with bothpromise and obstacles. As we face faster market shifts, environmental changes, and technological advances, we remain committed toprogressing with the times and staying ahead of the curve. We aim to convert ideas into opportunities, dreams into plans, and plans intoactions. United by a shared vision, we will forge ahead, collectively uphold our responsibilities, and strive for high-quality and sustainabledevelopment.
Chairman and GeneralManager of Winner Medical
Li Jianquan
0102
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
0304
About UsESG ManagementCSR SpotlightMessage from Chairman
About Us
Strategic Vision
Corporate Culture
Company Pro?leWinner Medical, headquartered in Shenzhen, Guangdong Province, China, is a healthcare company that realizes the coordinateddevelopment of the medical and consumer sectors through its two major brands, including "Winner Medical" and "Purcotton". Withinnovation and expansion, Winner Medical has extended its business to ?elds like medical and health care, personal care, home care,maternal and child care, home textiles and apparel. Its products have obtained certi?cation from the CE, FDA, and the Ministry of Healthand Welfare of Japan. The Company has 30 primary and secondary wholly-owned and holding subsidiaries.With a professional R&D team that combines theory and practice, Winner Medical has made innovations and breakthroughs throughyears of painstaking research on the production process and product characteristics of medical consumables, and has established amedical-grade quality management system early in the industry and passed the ISO 13485 medical device quality management systemcerti?cation. Our medical dressings have been sold in more than 110 countries worldwide. As of December 31, 2023, the Company hasobtained a total of 1,375 patents, including 140 invention patents, 810 utility model patents, and 425 design patents.Starting with pure cotton spunlaced non-woven fabric, Purcotton is a healthy lifestyle brand with "Close to medical science with 100%cotton care" as the brand concept and "Medical background/Purcotton philosophy/quality in our DNA" as the core competitiveness. Itsproducts include non-woven consumer products such as pure cotton soft towels, pure cotton top sheet sanitary napkins and pure cottonwet wipes and woven consumer products such as baby products, baby clothing, and home textiles. Purcotton advocates a comfortable,healthy, and environmentally friendly concept by replacing chemical ?bre with cotton to keep away from chemical irritation and providingtotal solutions for di?erent life scenarios. With such e?orts, Purcotton has harvested a sound reputation among users, developed a fullydi?erentiated brand image in the ?eld of consumer products and built a strong brand appeal.
Since its inception, no matter how the external environment changes, the three core principles of "quality is superior to pro?t; brand issuperior to speed; social responsibility is superior to corporate value" have always been rooted in our hearts. From the present to themedium to long term, China and even the world are facing enormous challenges and changes. In 2023, Winner Medical focused on threecore principles, embraced new changes, met new opportunities, and responded to new environments with a more active and open attitude.We also challenged new markets, created new technologies, and developed new products to embrace new consumption trend. Firmlydelivering the core strategic idea of "Leading Products and Excellent Operation", we steadily moved forward the high-quality development.
Purcotton changes the world
Leading a healthy lifestyle witha trusted brand
Delight Customers, Care forEmployees, Hard Work andInnovative
VisionVision
Caring for health and life,making a better worldMissionMissionLeading the trend of big healthand achieving harmony betweenpeople and the environmentValuesValuesHard work, innovative, self-criticism, and sustainabledevelopment
We optimized the category structure and product portfolio, gradually upgraded andincreased investment in traditional medical products and enhanced the competitivenessof traditional conventional products around the core three features. We created popularproducts/singles, such as surgical packs, wound caring, infection protection, cleaning anddisinfection, and infusionmasks, surgical gowns/bags, and foam dressings, and providedsolutions based on users' pain points in speci?c scenarios. At the same time, we continuedto upgrade and make breakthroughs in basic materials, tackled product functional defectsand other problems, and promoted industry-university-research cooperation and theimplementation of national/provincial innovation platform projects.We strengthened branding, Wemedia operations and other publicity and communicationcoverage to establish the No.1 image of the professional medical brand and attract theeyes of users; upgraded the product channel portfolio strategy by focusing on domesticand overseas key hospitals, pharmacies and large customers and conducting cooperationin land, sea and air transportation, further developed customers and controlled the end-user market for mutual bene?ts with all partners.We summarized our experience during the COVID-19 pandemic and turned our ability todecide, collaborate, respond and execute quickly into daily capabilities. We also improvedthe integration of multiple categories for new business acquisitions and accelerated thedeep integration of products, technology, marketing and operations to promote theconvergence of terminals and maximize value for strategic development.
0304
About Us
WinnerMedical
LeadingProducts
ExcellentOperation
Quality is superior to profit; Brand issuperior to speed; Social responsibilityis superior to corporate valueBusiness principles
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
0506
About UsESG ManagementCSR SpotlightMessage from Chairman
Product MatrixFor over three decades, Winner Medical has embarked on its journey with cotton as a starting point, continuously innovating and growinginto a pioneering enterprise that seamlessly integrates research and development, production, and sales. Today, the Company boasts arobust framework where medical dressings and consumer goods are developed in tandem, with both the "Winner Medical" and "Purcotton"brands ?ourishing side by side.
The "Ten Adherences" of Winner Medical
Ten Adherences
Our main product lines
About Us
Purcotton
LeadingProducts
ExcellentOperation
Purcotton is dedicated to material innovation and committed to the research anddevelopment of basic materials and cotton cultivation. By utilizing cotton/geneticmodification and technological application, we unlock the full potential of cotton,empowering pure cotton products with technology so as to bring safe, happy andsustainable lives to users. We also clearly focus on ?ve strategic products to establish anabsolute advantage in the market. Through the promotion of popular products and scene-speci?c market penetration, we have gradually shaped the brand soul of "All Categoriesof Cotton". Additionally, we concentrate on our popular products and simplifying ouroperations, thus increasing the overall efficiency of our company and maintaining ourproduct leadership.
With a focus on improving user traffic, conversion and unit price of key categories invarious channels, we carried out work and capacity building in branding, marketing,channels and retail; we won the battle of branding for new customer acquisition andfocused on serving Purcotton's consumer groups; we further developed channelsby expanding franchisees while strengthening basic management; we acceleratedbreakthroughs in digital transformation capabilities, completed the digitalization ofcommodities, consumers and channels, upgraded the digital system integrating the threemajor systems, and developed the capacity to build the core business integration processto achieve simpli?cation, visualization and standardization.
Adhere to followingthe the guidance ofthe Party
Adhere to having theentire motherland inmind
Adhere toexploring andinnovatingAdhere toself-criticism
Adhere to theThree Priorities
Adhere tokeeping up withthe times
Adhere toaltruism
Adhere toexcellentoperationsAdhere tocustomer-orientedstrategy
Adhere tohard work andstruggle
During the Reporting Period, WinnerMedical's WIND ESG rating improved fromBBB to A, and its Guosen Securities ESGrating achieved AAA, ranking the top of thetextile, apparel, and luxury industry
Winner Medical was listed on the "Top 100China Listed Company Health Index in2022"
Rated as "Best Practice Award for Board
Office of Listed Companies" by China
Association for Public Companies for twoconsecutive years
Thanks to our Model Plant for IntelligentMedical Textile Manufacturing of WinnerMedical (Wuhan), Winner Medical washonoured as the "leading unit of 2023
Intelligent Manufacturing Model Plants"selected by the Ministry of Industry andInformation TechnologyWinner Medical (Wuhan) received the"Green
Plant" honorary title from the Ministry of
Industry and Information Technology
Winner Medical was recognized in the "List
of Health Industry Brands in 2023" at the
16th CPEO, winning "CPEO Gold Award" forthe third year in a row
Purcotton was bestowed with the"Pioneering Award of Talent ManagementReform in China in 2023"
The "Biodegradable Nano Mask" projectby Winner Medical was awarded the
Sustainability and Innovation Award (2023)
by the International Textile ManufacturersFederation
Rated as "Excellent ESG Case Study of ListedCompanies" by China Association for Public
Companies for three consecutive years
Winner Medical and Purcotton won
CSR award at China Corporate SocialResponsibility Forum for two consecutiveyears
2023Awards
·Medical cotton·Cotton soft tissues·Sanitary napkins·Face masks
·Baby loungewear
·Adult loungewear
·Silicone dressings·Surgical gloves·Surgical gloves·Incontinence care
·Injection and puncture products·Bedding
·Gauze·wet wipes, etc.·Period brief, etc.·Cotton pads
·Baby bath towels
·Outwear
·Cotton diapers, etc.
·Baby blankets, etc.
·Underwear, etc.
·Alginate dressings·Surgical kits·Surgical kits·Oral and nasal products
·Test kits, etc.·Toiletries, etc.
·Bandages, etc.·Superabsorbent dressings, etc.·Surgical gowns, etc.·Surgical gowns, etc.·Hand-free disinfectant gels, etc.
Traditional woundcare and dressing
products
Baby clothing &accessories
Advanced wounddressings
Other non-wovenproductsOperating roomconsumablesInfectionprotection
PersonalCare
Sanitarynapkins
Otherproducts
Wet and drycotton softtissues
Other wovenproducts
Adultclothing
M
e
d
ic
al
c
o
nsuma
b
l
es
Health
consumer
p
r
o
d
u
c
ts
W
in
n
e
r
P
i
n
g
a
n
W
in
n
er
Guilin
Pu
rco
t
t
o
n
Win
n
e
r
M
edical
Lo
n
g
t
e
r
m
M
e
d
ic
a
l
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
0708
About UsESG ManagementCSR SpotlightMessage from Chairman
ESG ManagementUnder the leadership of the Strategy and Social Responsibility Committee, Winner Medical focuses on environmental, social and governancetopics and has established an operational management mechanism covering all its departments to make regular information disclosures,and improved and implemented its ESG management rules and regulations.Stakeholder CommunicationThe Company attaches great importance to corporate social responsibility work, fully considers the demands of stakeholders, and makesresponses through channels and means such as websites, meetings, reports, events and media. We also maintain communication withthem via those channels.
Material Topics Identi?cation
Steps for identi?cation
Materiality matrix
The Company follows the path of "topic identi?cation, topic research, topic selection, and topic response" to identify key material topicsfrom the dimensions of "signi?cance to the Company's strategy" and "degree of concern to stakeholders", and disclose them in the report.
Systematically sort out legal policies andindustry hotspots, benchmark againstpeer ESG practices, and combine with theCompany's reality to form a topic library.
Distribute questionnaires to internal andexternal stakeholders, collect and screenvalid questionnaires, and conduct topicevaluation and analysis.
Give key disclosure of material topics inthe report to respond to stakeholders.Evaluate and prioritize topics from twodimensions: "signi?cance to the Company'sstrategy" and "degree of concern tostakeholders", and screen and identify keymaterial topics议题筛选
Degree of Concern to Stakeholders
Signi?cance to the Company's Strategy
Key stakeholdersTopics of concern
Communication andresponse
Shareholders andsenior management
·Economic performance·Corporate governance·Compliance and risk control·Business ethics
·General meeting of shareholders·Board of directors·Financial reports·Business reports
·Corporate governance·Business ethics·Environmental management·Waste discharge
·Regular communication and reporting·Institutional research·Policy implementation·Information disclosure
Partners
·Supply chain management·Technology R&D innovation·Product quality
·Industry conferences·Strategic Cooperation·Exchange and visits
Community, the
public and media
·Eco-environmental protection·Community bene?t
·Community volunteer activities·Social welfare projects·Social undertaking supportive projects
Customers
·Product quality·Customerservice·Responsible marketing·Green packaging
·On-site communication·Market research·Customer satisfaction survey
Employees
·Employee rights and bene?ts·Employee development and training·Occupational health and safety
·Employee activities·Employee training·Corporate intranet·Employee handbook
Corporate governanceAddressing climate changeProduct quality and
safety
Talent introductionCommunity public welfareShareholder andinvestor interests
Environmental managementResponsible marketing
Employee rights and
bene?ts
Technology R&D and innovationCompliance andrisk control
Energy and watermanagement
Customer serviceOccupational healthand safety
Supply chain managementBusiness ethics andanti-corruption
Hazardous emissions andwastes
Privacy and data securityEmployee development
and training
Promoting industry exchanges
Governance
Government andregulators
ESG Management
Roadshows and communication withthe Company
Topicresponse
Topicresearch
TopicIdenti?cation
Topicselection
Environmentalprotection
Products andservices
Sta?development
Community developmentand cooperation
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
0910
About UsESG ManagementCSR SpotlightMessage from Chairman
Since its inception, Winner Medical has consistently upheld its core principle, "quality is superior to profit; brand issuperior to speed; social responsibility is superior to corporate value". We strive for the organic unity and dynamicbalance among business, environmental, and social benefits, integrating sustainability into our corporate strategy.This approach promotes benign development across the value chain and helps build our sustainable businessmodel in both our operations and throughout the industrial chain. Our commitment to green developmentparallels our pursuit of business advancement.
"Winner" (steadiness) underpins our company’s ethos, symbolizing both our commitment to stable growth and our drive towards constantinnovation and development. Winner Medical steadfastly responds to national policies, weaving sustainability into our developmentstrategy. We continually re?ne our product mix and category structure, and enhance our internal management systems. We have evolvedinto a conglomerate that encompasses branding, research and development, production, sales, and service, dedicated to bolsteringoperational stability and advancing towards high-quality development.
The Company champions a development vision of "caring for health and life, making a better world", grounding the brand with sustainablebusiness model. We embrace altruism and a long-term philosophy, proactively fulfilling our social responsibilities. Starting from rawmaterials, the Company is committed to providing the highest quality products and services, allowing more consumers to understand thesustainable value of cotton and fully integrate themselves into social and environmental sustainability.Enhancing farmers’employmentopportunities
Actively deploying renewableenergyOptimizing a diverse and inclusiveworkplace
Reducing greenhouse gas emissions
Supporting desert cotton planting
Constructing green, smart plants
Supporting cross-regional procurementfor balanced regional development
Enhancing the performanceevaluation system
Transforming desert ecology andregulating regional microclimates
Participating in community governanceEnhancing community life quality
Prioritizing technological innovationin sustainable production
Caring for girls in remotemountainous areas
Developing healthcare productsand everyday essentials
Making donations to support theestablishment of rural schoolsUpholding gender equality inemployment
Utilizing water-saving productiontechnologies
Donating healthcare supplies tovulnerable groups
Launching joint talent trainingwith colleges and universitiesSupporting the Shenzhen Women andChildren’s Development Foundation
Implementing smart water-savingsystems
Implementing di?erentiatedtalent training programsLaunching public welfare projectsfor womenIncreasing the proportion of femalemanagement continuously
Regularly monitoring and assessingsafety factors in workshops
Supporting agriculturaladvancements
Donating essential living supplies
Responding to the UN SDGs
Embracing a Long-Term Philosophy and Promoting Sustainability
Sustainable brand philosophyCommitment to social responsibility
At the 2023 Wuzhen Health Conference and the Second China Over theCounter (OTC) Conference, the initiative chi Forest Refreshment: 'Win' theCollege Entrance Exam" of Winner Medical was lauded with the "West Lake
Award Innovative Marketing Case."
Winner Medical was recognized inthe "List of Health Industry Brandsin 2023" at the 16th CPEO, winning"CPEO Gold Award" for the thirdyear in a row.
Awards
0910
CSR Spotlight
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
About UsESG ManagementMessage from Chairman
CSRSpotlight
Fostering a Sustainable Business Modelfor Sound Industry Growth
Reducing water pollution andprotecting the water environment asaquatic habitats
Avoiding land use conversion thatharms biodiversitySupporting ocean plastic reduction
Advocating for the protection ofendangered speciesAbiding by national and internationallegislationImproving modern, transparent, andsustainable corporate governanceForming a“community of sharedinterests”with the government,?nancial institutions, socialorganizations, community residents,and various partners across theindustrial chainIncorporating environmental, social,and regional development goals intocorporate strategiesConducting supplier managementtrainingAchieving low-carbon productcerti?cation
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
1112
About UsESG ManagementCSR SpotlightMessage from Chairman
Non-woven reusable shopping bags distributed
48.05
million
Products certi?ed as "China Green Products"
The Company leads in creating green products with cutting-edge design concepts. Our commitmentto standardization, recyclability, reduction, and harmlessness steers our transmission of green andsustainable models through products. Meanwhile, we have actively promoted the "Zero PlasticInitiative" sustainable packaging solutions, and have formulated a green development plan forproducts such as the deplasticization of pure cotton packaging materials and the manufacturingof shopping bags with noil fibres. We pursue the organic unity and dynamic balance of productmodels in terms of economy, society, and environment. This approach exempli?es our dedication toseamlessly blending economic, social, and environmental considerations for holistic and balancedprogress.
Case
Case
Purcotton implements "Zero Plastic Initiative"
Launch of the ECOLOGY series to support endangered animals
Purcotton has committed to extensive "plastic reduction" efforts, includingstandardizing packing box dimensions, replacing disposable packaging, andenhancing packaging recyclability. In 2023, we achieved a signi?cant milestone byremoving plastic from 2,040 products across over 40 categories within our consumergoods portfolio. This included essential items such as baby super soft cotton tissues,gauze bath towels, and sanitary napkins, with an annual sale of 16.48 million pieces.The initiative extended to a wide array of products, including cotton soft tissues,disposable underwear, tampons, sanitary napkins, period briefs, gauze quilts,bedding sets, duvets, sleeping bags, bedspreads, and gauze square towels, furtherreducing the environmental impact of our product packaging.
In a bid to promote environmental consciousness, Purcotton introduced the ECOLOGY series, a line of clothing inspired byendangered animals. This series uses natural cotton as a medium to re?ect the true essence of ocean, forest, land, and cotton.The ECOLOGY series underscores our dedication to protecting endangered species and maintaining ecological balance,conveying a powerful message of sustainable philosophy.
Purcotton’s plastic-free packaging
2023 Summer ECOLOGY Series
"Hello Cotton Color" Exhibition highlights cotton's sustainable beauty and ecological value
Witnessing women's power in choices and changes
In August 2023, Purcotton's "Hello Cotton Color" ?ash exhibition was unveiled at Chengdu's Vientiane City. Drawing inspirationfrom the hues of cotton, the exhibition invited visitors into an expansive space where science, humanities, and art converge. Here,attendees experienced the vibrant essence of cotton, engaging with the brand's message that "everything, from raw materials tocolors, is derived from nature." This event e?ectively communicated cotton's sustainable and ecological signi?cance.
With the continuous development of society, more and moreoutstanding women are breaking through the barrier of bias，demonstrating their remarkable growth and contributions.Women are not only participants in society, but also importantdriving forces in the ?eld of technological innovation. In 2023,Purcotton teamed up with China Women's News and Shixiang.Xin to launch the fourth episode of the original documentaryseries "What She has Changed". The story is about the firstfemale navigator in China to cross the Arctic Ocean - BaiXiang'en, which aims to inspire more women to bravely pursuetheir dreams and believe that their power can change theworld like Bai Xiang'en.
"China Green Product"Certi?cation Certi?cate
Original Documentary Series "What She had Changed"
"Hello Cotton Color" Exhibition
million+
Pieces of cotton garments andbedding sold, mitigating theenvironmental impact typicallyassociated with the production ofequivalent synthetic ?ber products
83.17
Through steadfast commitment andinnovative contributions to socialresponsibility, Winner Medical andPurcotton were honoured with the"2023 CSR Award" at the 19th ChinaCorporate Social ResponsibilityForum.
CSR Spotlight
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
About UsESG ManagementMessage from Chairman
Awards
Sustainable product philosophyChampioning environmental protection
Case
Case
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
1314
About UsESG ManagementCSR SpotlightMessage from Chairman
Since our founding, Winner Medical has been dedicated to the mission of "leading the trend of big health and achieving harmony betweenpeople and the environment," steadfastly following our core strategy of "Leading Products and Excellent Operation" to empower users withour medical expertise. Through our brands, Winner Medical and Purcotton, we achieve a synergistic development of medical and consumersectors. This dual approach ensures comprehensive health protection for our users across all scenarios.
Cotton is celebrated not only for its comfort but also for its environmental friendliness, playing a crucial role in preserving Earth's ecology. Purcottonhas been upholding its vision of "Purcotton Changes the World" and the mission of " leading a healthy lifestyle with a trusted brand" for years. Wesource high-quality cotton from around the globe as our primary raw material and maintain strict control over every production link.At Purcotton, the Company's innovation and research center around cotton and align with market demands. Our range spans non-wovenconsumer goods like 100% cotton soft tissues, sanitary napkins with a 100% cotton surface, and 100% cotton wet wipes, as well as textileproducts including baby supplies, and children’s and adult apparel. This diversity caters to various consumer groups, including children,infants & moms and adults, covering user engagement across multiple categories and earning accolades from our customers.
In April 2023, Winner Medical and Purcotton showcased at the 2023 World Health Expo, comprehensively displaying theCompany's product matrix around medical and consumer scenarios. Engaging with attendees, we demonstrated WinnerMedical's innovation, product excellence, and brand strength from all perspectives, earning the "Contribution Award" at theExpo.
In November 2023, the " Biodegradable Nanofiber Mask" project by Winner Medical was honoured with the Sustainability &Innovation Award by the International Textile Manufacturers Federation, one of only ?ve projects globally to receive this distinction.This environmentally friendly mask, made from bio-based materials, achieves a degradation rate of over 95%, significantlylessening environmental impact. Moreover, it stands out for its stability in ?ltration e?ciency, breathability, and comfort.
In October 2023, Purcotton released the enhanced cotton soft tissues to the market. This productfeatures ultra-soft, thick cotton spunlace non-woven fabric, made from 100% natural cotton and33% thicker than standard options. Designed for durability and repeated use without tearing easily,it meets the diverse needs of consumers across various scenarios.
2023 World Health Expo
Our " Biodegradable Nano?ber Mask" received the Sustainability & Innovation Award of ITMF Award 2023
Purcotton’s cotton soft tissues with extra size and thickness
1314
CSR Spotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
About UsESG ManagementMessage from Chairman
Prioritizing Quality and Innovating in Sustainable Layout
Case
Showcasing our product matrix at the 2023 World Health Expo
We are dedicated to enhancing our industrial layout by expanding business lines, continuously re?ning our category structure and productportfolio. We are investing in and upgrading traditional medical products, boosting the competitiveness of conventional o?erings basedon three core characteristics. By addressing user pain points in speci?c scenarios, we o?er targeted solutions to promptly meet marketdemands.As we enhance our products’market penetration and market share, the Company remains committed to its social values and focuses on thesustainable, long-term development of the Company. Our primary product lines span wound care, infection control, and personal healthcare. This includes advanced wound dressing products, traditional wound care and dressings, operating room consumables, infectionprotection products, and personal health care items.
Medical sector strategy
Consumer sector strategy
Empowering users with medical expertise
Leading a healthy lifestyle
Case
Case
Winner Medical's " Biodegradable Nano?ber Mask" earns international accolade
Purcotton develops innovatively 100% natural enhanced cotton soft tissues, to improve thequality of healthy life
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
1516
About UsESG ManagementCSR SpotlightMessage from Chairman
Winner Medical’s "end-to-end, full-chain integration" approach for cotton productsUpstream: CultivationMidstream: ProcessingDownstream: Application
Our ActionsResults
increase in our organiccotton usage
Planting bases forupstream cottonpurchasingSince 2016
twentyfold
roughlycotton plantingarea
,
mu
Cotton farmersinvolved
,
%annualconsumption
Proportion to thenational output
,
tonsPartnering with suppliers on organiccotton projects to advocate for organicpractices, eliminating the use of harmfulpesticides and fertilizers, and expandingthe use of organic cotton.Championing the"contract farming"model, we’ve collaborated with Hubeiprovince to cultivate cotton on idle lands,enhancing land utilization.
By purchasing over conventional cotton,we’ve contributed an additional RMB 12million to the industrial chain.This initiative spans 1,500 mu of land,purchasing seed cotton at prices 8%above market rates to boost farmers’
earnings.
Working with textile suppliersknown for their exceptionalenvironmental practices, andadopting water and energy-efficient technologies to aim forindustry-wide reductions in energyand resource consumption.
Low-temperature pretreatmenttechnology results in savings of79% in steam, 50% in water,33% in electricity, and 78% incarbon emissions.High-efficiency washing technologyfurther achieves a 25% reductionin steam usage, 29% in water, and28% in carbon emissions.
Launching the industry’s ?rst all-cottonsoft tissue, along with additive-freecotton wet wipes, sanitary napkinsfeaturing cotton from the pad to thewings, the first 100% cotton babydiapers, high-cotton-content seamlessunderwear, and all-cotton gauze bathtowels without softeners, ?lling multiplemarket gaps for cotton products.
With over 67.3 billion cotton tissuessold and 320,000 tons of cottonpurchased, Purcotton has facilitatedthe improvement of the planting area,yield, and quality of cotton in Xinjiang..
As a key player and leader in the cotton industry chain, the Company has established a distinctive position with Chinese characteristic withinthe global cotton industry based on its two ?agship brands, "Winner Medical" and "Purcotton". By crafting a dedicated supply chain system,we' ve realized a comprehensive "end-to-end, full-chain integration" of cotton. This strategic approach enables us to oversee quality at everyphase and dimension, securing the stability of our supply chain.
The Company firmly believes in the ethos of win-win cooperation and mutual growth withour suppliers, dedicating e?orts to bolster supplier support and fostering a sustainable supplychain. Regular supplier training sessions and on-site consultations are conducted, benefitingapproximately 30% of our suppliers. In response to market dynamics, the Company devisestailored support for suppliers to jointly overcome di?culties, aiming to encourage a stable andpositive evolution of the industrial chain.
From November to December 2023, Winner Medical showcased at the inaugural China International Supply Chain Expo as theleader of the "Healthy Life Section." Our exhibit, "Healthy China, One Cotton One World," explored the rich history, modernprogress, current industry landscape, and technological advancements in cotton. We showcased the Chinese model of promotingthe prosperity of the "Cotton Industry Chain" to the society, highlighting the seamless cooperation and synergy across its varioussegments. This presentation underscored the philosophy of fostering an open and mutually bene?cial relationship with bothupstream and downstream partners.
1516
CSR Spotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
About UsESG ManagementMessage from Chairman
Winner Medical recognizes that sound supply chain management is a crucial driver for the positive development of the Company, with win-win cooperation serving as the foundation for our growth. Through ongoing exploration and innovation, we have expanded multi-industrypartnerships, supporting the sustainable evolution of the cotton industry chain. We are dedicated to o?ering consumers a future wherenon-woven products can e?ectively replace woven materials, and pure cotton replaces chemical ?bers, and jointly creating a sustainablebusiness model for the cotton industry..
Championing Industrial Upgrades for Sustainable Supply
Navigating uncertainty and integrating throughout the industrial chain
A supply chain that cultivates mutual success
Li Jianquan, Chairman of Winner Medical,has taken on the role of the inauguralrotating chair of the ManagementCommittee of Cotton China SustainableDevelopment Program.
Case
Winner Medical at the First China International Supply Chain Expo
2023 China International Supply Chain Expo
Winner Medical continuously strengthens internalcompliance management, establishes a sound corporategovernance structure, and improves the quality ofinformation disclosure. The Company also strengthensinvestor relations management by regularly holdinginvestor communications meetings, proactivelyexchanging with investors, and responding to marketconcerns, to enhance investor trust in the Company,and ensure the long-term stable development of theCompany.
1718
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Conducting PrudentGovernanceto Build a SolidDevelopment Foundation
1920
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Togetherto EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancementConductingPrudentGovernance
GivingBack to theSocietyPracticingGreenDevelopmentPursuingExcellence
Operations of three meetings
In accordance with theCompany Law, the Securities Law, the Rules Governing the Listing of Shares on the ChiNext of the ShenzhenStock Exchange, the Articles of Association of Winner Medical Co., Ltd. (the "Articles of Association") and other Chinese laws, regulationsand regulatory documents, the Company has ensured that the General Meeting of Shareholders, the Board of Directors and the Boardof Supervisors can exercise their powers of decision making and supervision, so as to enhance the independent operation of the threemeetings, improve the governance mechanism and standardize the operation and management of the Company. On December 19, 2023,we conducted training for Board of Directors, Board of Supervisors and senior management on recent regulatory trends and the newregulations for independent directors.
The Board of Directors (the Board) is accountable to the General Meeting of Shareholders and has four specialized committees that areaccountable to the Board of Directors. The membership of these specialized committees is made up entirely of directors. Except for theStrategy and Social Responsibility Committee, other specialized committees are comprised of a majority of independent directors whoact as conveners, and the convener of the Audit Committee is an accounting specialist. The Board is in charge of establishing the workingprocedures and standardizing the operation of the specialized committees, which provides strong support to the Board in making scienti?cdecisions.
The Board of Supervisors supervises the Company's finances and the legality of the duties performed by the Company's directors andsenior management in accordance with theCompany Lawand other Chinese laws and regulations as well as theArticles of Associationandinterests of the Company and its shareholders
Winner Medical is a council member of the China Association of Pubic Companies and the Shenzhen Public Companies Association, whichhas always standardized its operations, and established a modern corporate governance system that is scienti?c and standardized, withe?ective checks and balances and e?cient operations. The Company strengthens communication with investors, and ful?lls its informationdisclosure obligations.
Relationship of three meetings in the Company
General Meetings of Shareholders held
Meetings of the Board of Supervisors held Board meetings held
During the Reporting Period,
As of the end of the Reporting Period,
Directors in the Board of Directors
including
Independent directors
includingFemale directors
General Meeting of Shareholders
Board of Directors
Board of Supervisors
The General Meeting of Shareholders is the highest authority of the Company. The Company convenes and holds the general meeting ofshareholders in strict accordance with the relevant regulations and requirements such as theCompany Law, the Articles of Association andthe Rules of Procedure for the General Meeting of Shareholders to ensure that all shareholders, especially small and medium shareholders,enjoy equal status and fully exercise their legitimate rights.
Strategy and SocialResponsibility Committee
Nomination CommitteeAudit Committee
Remuneration andAssessment
Winner Medical's GeneralMeeting of Shareholders
The Board of Directors
The Board of Supervisors
Investor relations managementWith the purpose of respecting, rewarding, and protecting investors, the Company has formulated regulations and systems such as theInvestor Relations Management System, and theSystem for Reception of Research Visits by Speci?c Subjects, committed to continuouslyimproving its corporate governance and investor relations management. Currently, a relatively complete work mechanism has been formed.Investor relations management has beencomprehensively deployed, coveringmodules such as "regular report promotion- routine institutional communication- activities of small- and medium-sizedinvestors - internal and external trackingand high-frequency analysis". Eventually, arelatively complete mechanism for investorrelations management has been developedas a whole.
The Company pays attention toopportunities for communication withinvestors. We reach a wider audienceand engage in extensive and in-depthcommunication with all investors invarious forms, including performancepresentations, analyst meetings, on-sitevisits, institutional reverse roadshows,interaction platform of SSE (http://irm.cninfo.com.cn/), and hotline calls .
Rated as 5A in the Performance Evaluation ofBoard Secretary for two consecutive years
Rated as "Best Practice Award for Board O?ce of Listed Companies"by China Association for Public Companies for two consecutive years
In 2023, at the invitation of the Shenzhen Stock Exchange, the Company's board secretary recorded a themed course on
Institutional Investor Relations Management of Listed Companies, sharing practical experience and re?ections from the exchangewith peer listed companies.
Improving Corporate Governance
Managementmechanismimprovement
In-depthcommunication inmultiple forms
2122
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Togetherto EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancementConductingPrudentGovernance
GivingBack to theSocietyPracticingGreenDevelopmentPursuingExcellence
Information disclosure enhancement
Since its listing, the Company has attached great importance to information disclosure. It has formulated theInformation DisclosureManagement System,the Accountability System for Major Errors in Annual Report Information Disclosureand other relevant systems,to strictly regulate the Company's information disclosure and ensure the veracity, timeliness, accuracy, and compliance of all disclosedinformation.
Protection of shareholder rights and interestsThe Company fully implements the policy of convening general meetings of shareholders through online voting. The approach makes itmore convenient for shareholders to participate in the meetings, and e?ectively safeguards the legitimate rights, interests and demandsof investors. To ensure investors fully exercise their rights, the Company upholds the separate counting and disclosure of votes on allmajor proposals for small- and medium-sized investors, encouraging their participation in corporate governance and key decision-makingprocesses.
In December 2023, as a representative of the China Association forPublic Companies, Winner Medical participated in the Hong KongCapital Market Forum of Chinese Listed Companies and the HongKong Roadshows. Chen Huixuan, Deputy General Manager andSecretary of the Board of Directors of the Company, led a team to visitthe Hong Kong Stock Exchange and the Liaison Office of the CentralPeople's Government in the Hong Kong Special Administrative Region,and participate in institutional investor roadshows. Through visits,discussions, and exchanges, the Company enhanced the understandingof the Hong Kong capital market, built a bridge with overseas investors,and more intuitively demonstrated and expressed the long-terminvestment value of Winner Medical to investors.
Performance Presentation for 2022 and Q1 2023
ESG themed investor exchange meeting
2 annual reports included into the Excellent Cases of AnnualReports of Listed Companies compiled by the Shenzhen StockExchange since the listing of the CompanyRated as Class A on information disclosure by the Shenzhen StockExchange for two consecutive yearsRated as "Excellent ESG Case Study of Listed Companies" byChina Association for Public Companies for three consecutive yearsDuring the Reporting Period, our WIND ESG rating improved fromBBB to A, and its Guosen Securities ESG rating achieved AAA,ranking the top of the textile, apparel, and luxury industry
announcements of various typesissued during the Reporting Period
HonorsHonors
Awarded the honorary title of "Excellent Practice Case of the Annual Report Performance Presentations" bythe China Association for Public Companies for three consecutive yearsAwarded the "Best Practices for Investor Relations Management by Listed Companies" by the ChinaAssociation of Pubic Companies
Awarded the "Tianma Award for Investor Relations of Listed Companies in China" by the Securities Times
Case
Visiting the Liaison O?ce of the Central People's Government inthe Hong Kong Special Administrative Region
7600Performance presentationsin various forms
Securities strategymeetings participatedInstitutional investors communicatingwith the Company
about
++
+
,
Communication activities organizedin various forms
People communicating with theCompany during the Reporting Period
Participating in the Hong Kong Capital Market Forum of Chinese Listed Companies and Hong Kong Roadshows
2324
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Togetherto EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
ConductingPrudentGovernance
GivingBack to theSocietyPracticingGreenDevelopmentPursuingExcellence
Operating in Compliance with Laws andRegulations
Strengthening risk control
The Company continues to strengthen risk control by constantlyimproving its management system, strengthening risk identi?cationmechanisms, and developing risk response strategies to ensuree?ective control and prevention of risks.
In strict compliance with laws and regulations, Winner Medical focuses on strengthening risk management, always follows business ethics,and ensures the safety and stability of enterprise operations, laying a solid foundation for the sustainable development of the enterprise.
Winner Medical collaborates with Ernst&Young Global Limitedon risk control projects to cultivate a "Golden Seed" talentfor internal risk control within the Group. Through systematiclearning of risk management knowledge and project practice,we continuously cultivate and integrate fresh talent into theGolden Seed Talent Plan. This initiative enables employees tounderstand the basic knowledge, role, and value of risks, raisetheir risk prevention awareness, improve their risk preventioncapabilities, and finally become an "indispensable riskmanagement team" of the Company.
Tel: Landline 0755-28018166; Mobile 199251935688Email: jubao@winnermedicalWeChat o?cial account: "Reporting channel" under the Group Risk Control CenterLetters: Winner Medical Supervision, =Headquarters Building, 43/F, HBC Huilong Center, Intersection of Mintang Road andYulong Road, Longhua District, ShenzhenVisiting for reporting
Whistleblowers may make a reporting through the following channels:
Reporting channels
Following business ethicsThe Company has gradually established an enterprise anti-fraud governance system that integrates prevention, identi?cation and response.Speci?cally, we have formulated a series of rules and regulations as institutional guarantee, and carried out o?ine anti-fraud compliancetraining from management to employees at multiple levels through the "Winner Medical Supervision" WeChat o?cial account. We havecarried out multiple special inspections on key issues of the Company, strengthened the development of the Company's integrity culture,and established various reporting channels and protection mechanisms to protect the rights and interests of whistleblowers.
We have established a risk fraud mapping matrix for the entire group from a supervisory perspective, which has been applied inthe guidance of supervisory work. 8 anti-fraud systems are developed and revised. We have completed the declaration of con?ictsof interest for all members of the Group for the ?rst time. 765 deputy managers or above of the Group have been organized to signintegrity commitments to improve the professional ethics of the management team.
Governance mechanism
17 articles on integrity publicity and implementation are released on the Company’s WeChat official accounts and 7 specialtraining are conducted to convey correct values and codes of conduct to employees, thus preventing the occurrence of misconductand reducing potential fraud risks.
Cultural development
During the Reporting Period, a total of
revisions and updates to systems (including thesupporting systems for independent directors) werecompleted
To standardize the Company's comprehensive risk management and establish a scienti?c and e?ectiverisk management system, the Company has established and improved its internal control systems,including theRisk Control and Disposal Mechanism, theMechanism for Risk Accountability, and theComprehensive Risk Management System. The Company irregularly reviews the internal governancesystem to ensure e?ective connection and follow-up with the revisions of the latest national laws andregulations, listing supervision policy guidelines, and rules. Besides, an internal control managementcommittee has been established. The internal control management institutions of each subsidiaryshould be consistent with the organizational structure of the Group's internal control managementcommittee to coordinate with the headquarters for uni?ed management and policy implementation,which promotes the sustained, stable, and healthy development of the Company.
Management
system
The Company identi?es various risk factors that may have a negative impact on its goals and businessoperations by reviewing business procedures, internal control systems, and external environment.After identi?cation, the risk factors are evaluated and analyzed through risk matrix, risk indicators, andstatistical data analysis. In such way, we can determine the occurrence probability of risks and the degreeof their impact on the enterprise, to provide a basis for subsequent risk control.
Riskidenti?cation
The Company organizes annual risk control summary meetings to enhance its risk control awareness.A strict approval procedure is in place, with clearly defined authority and accountability structures,ensuring all business activities and decisions receive reasonable review and approval. We also clarifythe job responsibilities and authorities of employees to ensure clear division of responsibilities invarious business processes and prevent overlapping and ambiguous responsibilities, while establishingappropriate job rotation mechanisms. An asset management system is built, including the registration,inventory, storage, and use of important assets, to ensure the safety and e?ective utilization of our assets.Various risk control training are conducted for employees to raise their risk prevention awareness andimprove their ability. In August 2023, more than 50 middle-level and above employees were organized toparticipate in securities compliance and public opinion management training.Risk control
Case
Carrying out training of "Golden Seed " Talent Plan for Risk Control to strengthen employees'riskprevention awareness
"Golden Seed" Talent Plan
2526
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Pursuing Excellenceto Spearhead IndustryAdvancement
For three decades, Winner Medical has followed a pathdefined by innovation-driven and quality-orienteddevelopment. We steadfastly adhere to our core strategyof “leading products and excellent operation”,progressing towards high-quality development. Thisinvolves enhancing our product R&D innovation, andaccelerating business transformation at the forefront ofthe industry. At the level of operational excellence, drivenby digitalization and intelligent manufacturing, we arecommitted to cost reduction and e?ciency improvement.By continuously enhancing our core competitiveness, wealso foster progress and development within the industry.
2728
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Being usefulSolving pain pointsBridging market gapsCreating new opportunitiesAnticipating needs
Enhancing customerexperience
M
ajo
r
Mod
es
Originating from Market NeedsBased on FundamentalPrinciplesDemand-pushed innovationInnovation for cost reductionInnovation for social responsibilityInnovation for a better life
“246” Approach
for Innovation
Strengthening R&D Capabilities
Research management mechanismWe have developed a comprehensive innovation and R&D system. Committed to the "246" innovation principle, we embrace newtechnologies, foster new demands, uphold technological ethics throughout the R&D process, enhance ethical risk management, and placea high emphasis on attracting and nurturing research talent to ensure sustained high-quality growth.
Industrialization of scienti?c research resultsWe actively promote the application of scienti?c research ?ndings, enhancing the speed at which research and technology are convertedinto practical solutions. Several projects have led to technological breakthroughs in medical dressings and daily consumer goods, achievingmass production and market release. We thus continually o?er consumers improved cotton-based products.
As a leader in the industry, Winner Medical understands the criticalrole of innovative research and development（R&D） in the growth ofboth the Company and the entire industry. We have always prioritizedscientific and technological innovation, enhancing our researchmanagement mechanisms, deepening industry-university-researchintegration, and building robust in-house research and innovationcapabilities. Our innovation extends from technology, materials,and products to cotton breeding, significantly bolstering our corecompetitiveness.
R&D investment during theReporting PeriodRMBmillion
Researchpersonnel
,
We have advanced into the third generation of bioactive dressingswith proprietary collagen extraction technology, obtaining FDA’s 510Kclearance.
We have developed a unique hydrocolloid formulaand mastering the coating moulding process for massproduction, shifting from outsourcing to independentproduction.
In July 2023, the cotton lining surgical masks were fully rolled out, leadingthe industry! As a leading enterprise in the domestic health industry, inactive response to the national "dual carbon" policy, Winner Medicalthat plays a leading role in domestic healthcare industry continuouslyinvests in the R&D of new products, and gradually promotes the "purecotton substitution" of all products. With practical actions, Winner Medicalleads the trend of medical environmental protection and promotes thesustainable development of the medical industry.Innovations in Medical Dressings
Ethical risk management
We adhere strictly to the Regulations on theAdministration of Laboratory Animals, andfollow the "3Rs principle" (Replacement,Reduction, and Refinement of lab animals).We also strictly abide by theDeclaration ofHelsinki and the Quality Control Standardfor Medical Device Clinical Trials(GCP)promulgated by the National Medical ProductsAdministration to protect the rights andinterests of subjects.
We are required to obtain approval from the ethicscommittee of the relevant medical institution whenconducting clinical studies on the relevant product.The investigator must provide the subject withdetails of the clinical study, and any subject who iscapable of giving informed consent must be fullyinformed of the purpose of the study, the methods,any possible con?ict of interest, the investigator’saffiliation, the expected benefits and potentialrisks of the study, any discomfort that may becaused by the study, post-study safeguards and anyother study-related aspects, and sign an informedconsent form for the patient.
Compliancewith laws and
regulationsResearchprocessintegrity
Selection and training of scienti?c research talentThrough initiatives like targetedprofessional college recruitment and the"Spring Seedling Initiative," we recruitR&D talents from renowned institutionslike Zhejiang University, Sun Yat senUniversity, Xiamen University, andSichuan UniversityDonghua University,Tianjin Polytechnic University, WuhanTextile University, and Zhejiang Sci-TechUniversity, while bringing in domesticand international senior technicians tostrengthen our R&D center's talent team.
Emphasizing the training to equip our researchstaff with cutting-edge innovation techniques,we’ve adopted an advanced training strategyto disseminate awareness of innovation andinnovation methods, and promote our meansfor innovation. To achieve this, we host aminimum of 10 training sessions each year, ledby esteemed corporate experts and professorsfrom scienti?c research institutions from homeand abroad, and send our core technicians topremier enterprises and research institutes forfurther education.
CollagenSpongeBioactiveDressing
Cotton LiningSurgicalMasks
HydrocolloidProducts
M
a
jo
r
P
a
th
w
ays
Ke
y
In
s
ig
h
t
s
Selection
Training
2930
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Our latest foam dressing product, recognized for its ease of use and excellent performance, facilitates medical sta? operationsand supports patient recovery. On June 8, at the ?rst BrightMD Fair China (Shenzhen), Winner Medical made an on-site releaseof foam dressings that were included into the Shenzhen standard catalogue for certified medical devices.this product wasincluded in the Shenzhen standard catalogue for certi?ed medical devices..
Purcotton’s gauze bath towel, made from 100% premium combed long-staple cotton, isproduced without any softeners. Even after multiple washes, it retains its natural softness,ensuring a gentle, non-oily touch akin to the skin. In collaboration with Bureau Veritas of France,a leading global testing and certi?cation agency, our towels have been rigorously tested andhave received the industry’s ?rst certi?cation for being free of added softeners.
Intellectual property management
The Company prioritizes intellectual property (IP) rights management. We continually enhance our IP management mechanisms andhave developed the Intellectual Property Management System. This system, overseen by the Innovation Committee, ensures the macro-management of IP rights, standardizes their management, fosters employees’enthusiasm for technological innovation and invention, andfacilitates the application of IP rights.By the end of the Reporting Period, obtained
,
patents, comprising
invention patents，
Utilitymodel patents and
design patents.In 2023,
new patents were granted , including
invention patents，
utility model patents and
design patents.
Silicon Softener Freecertificate issued byBureau Veritas, France
We developed a pioneering ultra-softand thick pure cotton spunlaced non-woven fabric specifically for cottonsoft tissues. This fabric providesexceptional softness and thickness,surpassing consumer expectationsfor quality and comfort.
We introduced the first-ever low-temperature bleaching process,increasing the softness of the productby 15% and its thickness by 10%using advanced fluffy spunlace non-woven fabrics.This innovative processsignificantly cuts down energy useand carbon emissions by reducing theproduction temperature.It achieved an industry-firstin elasticity with stretchablecotton gauze, thanks tothe innovation in cotton-covered yarn technology andequipment, marking a signi?cantadvancement in gauze products.We successfully created icy gauzethrough a combination of chiffonyarn technology and the mercerizingprocess, delivering a cooling sensationthat exceeds the national standardby 30%, offering instant relief andcomfort.
The innovation in gauze crepingtechnology has led to thedevelopment of Airy Crinkle Yarn,with improved wrinkle effects andfabric uniformity for enhancedcomfort and aesthetic appeal.
Purcotton is proud to introduceits second-generation Air-SoftCotton Warm Velvet, a fabricthat offers superior softness,increased thickness, and betterheat retention.
Ultra-Soft and
Thick PureCotton SpunlaceNon-wovenTissue Fabric
Baby SuperSoft CottonTissues(Enhanced Sizeand Thickness)
Airy Crinkle
Yarn 3.0
Second-GenerationAir-SoftCotton WarmVelvet
StretchableCotton Gauze
Icy Gauze
Innovations in Daily
Consumer Goods
Case
Winner Medical’s new foam dressing obtains Shenzhen standard certi?cation
Shenzhen Standard proves high quality. Winner Medical's new foam dressing product
enters the Shenzhen standard catalogue for certi?ed medical devices
Case
Industry’s ?rst certi?ed softener-free gauze bath towel
3132
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Pursuing Premier Quality
Quality management and control system
The Company stringently oversees the three critical stages of product quality: development, production, and pre-launch. Employing PDCA(Plan-Do-Check-Act) cycle management, we continuously re?ne our management mechanisms, ensuring our products’ quality level andreputation remain industry-leading.
Digital and smart manufacturingSince 2016, we have launched a digital transformation strategy, marking the beginning of the exploration of intelligent manufacturing. Aseries of measures have been gradually implemented with lean, standardized, automated, green energy, digitalization, and intelligence asthe core , and projects have been gradually promoted to roll out, such as SAP S4 upgrade, PLM, OA, CRM, WMS, Win+ platform, and SRM. Insuch way, we have achieved business integration throughout the whole procedure of R&D, planning, manufacturing, quality, processing,warehousing, logistics, and customers, thus consolidating basic management, and improving operational e?ciency.
Adhering to the principle that "quality is superior to pro?t ", the Company rigorously focuses on product quality management. We havedeveloped strict and sound quality standards and processes, established a quality management center, and maintained control overproduct quality throughout the entire process, thereby continually enhancing the quality of our products.Honors and Awards
Our quality management center has been certi?ed to ISO 9001 Quality Management SystemPurcotton received the "Advanced Standardization Organization" and "Strategic Partner" awards from theKnitwear Branch of the National Technical Committee on Textiles of Standardization Administration of China and theSportswear Branch of the Sporting Goods of Standardization Administration of China, respectivelyPurcotton was recognized as a "Model Enterprise for Quality Production in Longhua District"
Production
Pre-launch
Digital empowerment for enhanced quality management and control
To tailor process quality control to the speci?c needs and characteristics of products, quality engineers are deployed to plants for oversight.Sampling inspections are conducted in accordance with the Company’s internal control standards.Initially, 30% of fabrics and 10% of auxiliarymaterials are sampled for inspection. Should thesesamples fail to meet the Company’s standards, thesampling rate is increased to 50%. If the standardsare still not met, the raw materials are rejected.Upon delivery to the manufacturing facility, anotherround of sampling inspection on the raw materialsis conducted by the finished product plant toensure compliance before use.
Quality personnel in the warehouse conductrandom inspections on product specifications,quality, and packaging to verify that the storedproducts meet all de?ned criteria in terms of qualityand quantity.
First article sampling inspectionsand in-process checks willbe conducted. Production isimmediately halted upon thedetection of any non-conformingproducts. Production onlyresumes once the quality issueshave been addressed andresolved.
A 100% inspection rate is appliedto ensure every product complieswith the necessary requirements.
Before launching, products are submitted for physical and chemical tests to a third-party, nationally recognized quality inspectioninstitution. Only products that pass these rigorous tests are approved for market release, guaranteeing compliance with relevant nationalstandards.
By integrating manufacturing business processes, production planning and execution, quality management, and equipment maintenance,we ensure comprehensive system monitoring from raw material procurement to final product delivery to monitor and prevent qualityissues, thereby ensuring all-round quality management.
Historical data analysis quickly pinpoints the root causes ofquality issues, preventing the recurrence of similar problems.
Raw Material Inspection
Pre-warehousing Inspection
In-Process Inspection
Finished Product Inspection
Product developmentThe operation process of raw materialdevelopment is standardized throughthe Fabric Development Specificationand Management Procedures for the R&DDepartment, enhancing raw material controland ensuring product quality and safety fromthe outset.
The development and operationalprocess of packaging materials arestandardized via the Review Systemand First Sample Confirmation ofPackaging Material Design Drafts,ensuring packaging structure meetstransportation and usage performance,and product information complieswith national laws and regulations.The use of production processes isstandardized to prevent quality issuesattributable to technical factors.The use of product models isstandardized through the DetailedRules for the Review of the QualitySample Office, establishingstandard models.
Prior to production, a comprehensiveevaluation focusing on risk, ?t, sample, andproofing experience is required. Followinga successful evaluation, key personnelfrom R&D, design, technology, quality, andprocurement departments jointly sign o? onthe samples. These are then issued to theplant as sealed samples, serving as crucialreference for quality control and productacceptance.
R&DDesign
Proce-ssesCompre-hensiveevalu-ation
Models
The system enables real-time collection, analysis, and sharingof data, facilitating prompt identification and resolution ofquality issues during the production process.
3334
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Winner Medical: Setting the benchmark for intelligent manufacturing in ChinaIn 2023, with achievements made in the Model Plantfor Intelligent Medical Textile Manufacturing of WinnerMedical (Wuhan), Winner Medical was honoured asthe "leading unit of 2023 Intelligent ManufacturingModel Plants" selected by the Ministry of Industryand Information Technology (MIIT). This accoladeis a testament to our commitment to using cutting-edge technologies, such as artificial intelligence, theInternet of Things, and big data, to signi?cantly enhancethe quality, production efficiency, and managementstandards of both our medical and consumer products,earning high recognition from the MIIT.
Business value transformation through digital empowermentDigital technology has significantly optimized our business processes, enhanced the efficiency of quality traceability, and reduced thereliance on paper documentation. This shift not only saves the time previously spent manually searching and organizing paper documentsand their physical delivery but also elevates work e?ciency and maximizes business value.
Quality culture fosteringThe Company has actively advanced the development of a quality culture, hosting presentations and info sessions on themes such asquality management system certification, the role of model quality enterprises in Longhua District, compliance training for the DoubleEleven online shopping gala, and product certi?cation planning.
Annually, the Company undergoes an audit for ISO9001 qualitymanagement system certi?cation for the Purcotton brand.
This presentation is tailored to the Company’s application for thestandardised strategic funding projects of Longhua District.This session trains relevant departments on the common andcritical aspects of compliance during the Double Eleven onlineshopping event.The training targets the non-woven product accreditation andtesting of various certification bodies and evaluation institutionsboth domestically and internationally.
Quality Management System Certi?cation Presentation
Presentation on the Responsibilities of Model QualityEnterprises in Longhua District
Compliance Training for Double Eleven Shopping Gala
Training on Product Certi?cation PlanningTraceability efficiency improved
Working hours spent on handwriting paperlabels and managing forms reduced more than
%
%
Case
Enhancing quality inspection with automated visual inspection technologyPurcotton has introduced automatic visual inspection technologyinto the quality inspection system for three-dimensional packages ofcotton soft tissues. Equipped with four cameras, this system digitallymanages all four sides of the packaging, assessing conformity withpredefined standards and rapidly initiating appropriate mechanicalresponses. This has substantially increased the e?ciency and accuracyof quality inspections for three-dimensional packaging. Moreover, thetechnology’s ability to gather extensive detailed data aids in analysingquality variations and implementing timely production adjustments.
Case
Regular quality meetingsWinner Medical convenes the Quality Management Center and other relevant departments for a quarterly quality meeting. Thesemeetings review and summarise the quality initiatives of each quarter across six areas: standard system, test management, fabricmanagement, non-woven ?nished products, woven ?nished products, and customer complaints. The sessions involve case studies,analyses of quality anomalies, propositions for improvement measures, and drafting of guidelines for future tasks, all aimed atcontinuously enhancing the level of quality management.
Training on product certi?cation planning
Achieving National Intelligent Manufacturing Maturity Level 3
List of the "leading unit of 2023 Intelligent Manufacturing Model Plants"
Case
Automated visual inspection technology
3536
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Enhancing Customer Service
Responsible marketingThe Company integrates the principle of responsibility into all marketing activities, creating tailored responsible marketing policies fordi?erent demographic groups to guarantee the standardisation and e?cacy of these activities.
Customer service managementThe Company is committed to continuously enhancing the customer service management system, valuing customer feedback, andconsistently re?ning our service processes. We strive to improve the professional skills and service levels of our customer service team todeliver superior services.
Full-Process Customer Service
Management mechanisms
Customer complaint handling
Professional training
Engaging in specialized vocational skills training has enabled 30 customer servicepersonnel to successfully pass the "Senior Baby Nurse" examination and certi?cation, thuso?ering more detailed and professional baby-care knowledge services to our customers.
By linking stores and warehouses for on-site training about products and salesexperiences, we help customer service personnel gain a deeper and more intuitiveunderstanding of our goods, enabling them to provide more targeted services to ourcustomers.
We organize various activities such as sales champion awards, service star evaluations,"Purcotton Changes the World" speech contests, and part-time lecturer competitions tomotivate our customer service staff to enhance their business knowledge and servicequality.
We provide full-process customer service, and establish and re?ne relevant management mechanisms. By reviewing and optimizing internalmanagement systems and process standards, such as the standard operating procedure (SOP) for customer service reception, after-salespolicy, processing standards, and the refund process for customer returns, we aim to increase the standardisation, consistency, and qualityof our customer service.
Viewing customer complaints as opportunities for product and service enhancement, wehave developed the Management Specification for Submitting and Upgrading CustomerComplaints. This aims to standardize the customer complaint handling process, preventcomplaints, and address major or potential risk events, thereby improving the timeliness andservice level of problem resolution.
We are dedicated to continually enhancing the professional knowledge and skills of ourcustomer service staff, encouraging proactive learning through both internal and externaltraining sessions, and labour skill competitions. This approach ensures that our customersreceive more comprehensive and professional services.
Focus on their specific needs, prioritising public welfaresupport during disasters and public health incidents.Regularly assess their unique product needs to tailorand enhance product offerings, providing better medicalprotection support.
Professional training programsconducted for hospital medicalsta?
Participants bene?ted in total
Customer complaint response rate
%
Closed-loop rate for resolvingissues within 48 hours
96.8
%
Number of professional babynurses in the customer serviceteam as of the end of theReporting Period
Case
Promoting public education on respiratory protection
We have launched the "Science Popularization· Protection Series Talks" in collaboration withthe China Youth Daily to carry out two sessionsof health education on respiratory protectionand children's respiratory protection duringthe school season. We are in response to publicconcern by providing reliable health educationon infectious diseases from authoritativemedical experts that the public are concernedabout.
Organize speci?c care activities on "Physician’s Day"and "Nurse’s Day" to show appreciation for theirdedication.For infection control professionals, operating roomnurses, and specialised wound nurses, conductspecial education and training programs to supportthe quality development of continuing education inthese specialised majors.
Offer consultation services on product details, storeand membership activities, and platform rules forprospective customers.
After the customer places an order, handle special shippingrequirements, abnormal transportation of in-transit orders, as wellas customer return, refund, and exchange needs, and standardizethe after-sales process, enhancing the shopping experience forcustomers.
Provide consultation on the shipping and delivery of orders, address product issuesupon arrival, and promptly resolve any customer concerns to ensure a seamlessproblem resolution loop.
Pre-Sales serviceIn-Sale serviceAfter-Sales service
Winner Medical is dedicated to a customer-centric service philosophy, continuously refining and advancing our high-quality serviceframework, sharing the softness and beauty of cotton, and ensuring every customer’s peace of mind.
For Medicaland NursingSta?
Winner Medical’s ResponsibleMarketing Policy
For Childrenand theElderly
"Science Popularization · Protection Series Talks"
3738
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Customer satisfaction
Times of "Gold Customer ServiceTeam" title awarded
Times of "Warm Shopkeeper" titleawarded
Extending quality issue resolutiontimeframe
Following customer suggestions, welaunched apparel categories in 160 sizes forolder children in the third quarter of 2023after feedback and investigation.
We conduct monthly"fault-finding"activities on product detail pages,adding comprehensive size information,including measurements, detailed data,and try-on effects, based on customerconsultations and return reasons,to provide more complete productinformation.We offer customers an extended period toaddress quality issues. If genuine qualityproblem photos are provided within threemonths from the sale date, we proceed withthe resolution, further safeguarding customerrights.
Meeting consumer demand
Improving product pro?le pages
2021
90.09
2022
91.43
2023
92.74
Customer Satisfaction
Tmall team honoured as the
"Excellent Customer ServiceTeam of the Year"
JD.COM team received the"Outstanding After-sales ServiceAward of the Year"
Case
Case
Case
Initiating the Global Member Access Initiative to improve member experience
Creating"Voice of Customers" Project and actively listening to customer feedback
To address inconsistencies in membership bene?ts arising from the separate management of online and o?ine platform members,Purcotton initiated the Global Member Access initiative. This e?ort aimed to harmonize online and o?ine membership bene?ts,o?ering consumers a consistent membership experience and service.
Membership across all channels is standardized, including uni?ed levels and accumulation ofbonus points across di?erent channels.We have ensured that multi-terminal membership and multi-platform membership bene?tsare consistent, offering uniform basic rights to all members and enriching the value ofmembership.We’ve synchronized member interaction activities across channels, enhancing theconsistency of visual themes and interaction opportunities to boost member engagement.
With the "Voice of Customers" project, Purcotton actively seeks out and listens to customer feedback. This initiative alignscustomer issues with specific departments following a "issue identification - reason analysis - period review" approach. Bybreaking down goals for each department and promoting actionable improvements, we’re continuously tracking progress toenhance customer satisfaction and experience.During the Reporting Period, 5 "Voice of Customers" meetings held, 21 departments mobilized to 57 action items completed
In July 2023, Purcotton introduced the "Undercover Customer"project,where anonymous shoppers evaluate our offline stores regularly.These evaluations focus on the store’s overall presentation, productdisplays, staff appearance, and service quality. Insights from thesevisits inform updates to our store SOPs, continuously refining theshopping experience.
580 undercover evaluations in Purcotton stores conducted,
87.81 (out of 100) overall satisfaction score achieved
2416
Uni?ed MembershipUni?ed Membership Bene?tsUni?ed Interactive Activities
Meeting for awarding regional service stars of the year
Honors and Awards
Our priority is always on customer experience and satisfaction. We continuously gather customer feedback to thoroughly understandtheir needs, improving service e?ciency and quality, safeguarding customer rights, o?ering more personalized services, and thus furtherboosting customer satisfaction.
Initiating"Undercover Customer"Project to continuously optimize the o?ine shoppingexperience for customers
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Ensuring Work Safety
Work safety managementThe Company has implemented a tiered safety management system,establishing standardized procedures for safety inspections, emergencydrills, and the identification of potential hazards. We also enhanceemployee safety awareness through training initiatives, continuouslyelevating our work safety management standards.
Administrative penaltiesrelated to work safety
Case
Conducting the Work Safety Red Flag Appraisal to enhance safety levels
During the Reporting Period,Winner Medical encouraged itsbranches to engage in the WorkSafety Red Flag Appraisal. Thisinitiative aimed to promotestandardized work safetymanagement and elevate thesafety management standardsthrough evaluations of thesafety management system,routine checks for potentialhazards, and branch-specificsite inspections.
Safety Management Mechanism
Major work safety accidents
Winner Medical prioritizes work safety, continually refining its work safety management mechanisms. We proactively identify potentialsafety hazards and categorize risk controls to ensure work safety is manageable. Additionally, we focus on mitigating internal and externalinformation security risks to safeguard all related data.
Safety inspection conducted at Winner Medical (Huanggang)
Safety Inspection and Drills
Safety inspectionsconducted by the Group
Safety drills held bybranches
times
times
We regularly carry out emergency drills such as safety inspections, evacuation, ?re drills, and competitions to comprehensively improvework safety.
Safety drill held at Winner Medical (Jiayu)
Enhancing safety awarenessWe are dedicated to educating our employees on work safety knowledge. This includes our worksafety policy and EHS policies, alongside what employees should know about ensuring worksafety. We provide three-tier safety education and training for both new hires and those changingpositions, ehancing employees’ safety awareness.
Safety education and trainingTraining organized by the Purcotton on ?ne management
of warehouse and llogistics safety
Work Safety Red Flag Appraisal
Training sessions on work safetyconducted by the Group
times
?A Safety Committee is operational atthe Company headquarters
Every branch has a safety committee taskedwith overseeing all safety-related activities.
The General Manager of each subsidiaryacts as the primary individualresponsible for the subsidiary’s safety.
4142
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Information securityThe Company has developed a three-tier information security management organizational structure, aimed at achieving the foundationalgoal of maintaining robust information security capabilities. This initiative focuses on enhancing the security performance and reliability ofour information systems, promoting internal and external awareness of information security, and ensuring data security.
Internal publicity sessions on information securityInformation security training coverage rate
%Training sessions on information security481004
In November 2023, Winner Medical successfully passedthe third level of evaluation for network security. Thisachievement has significantly improved the securityperformance and reliability of our information systems,guarding against malicious attacks, unauthorizedintrusions, data breaches, business disruptions, andother risk events, ensuring uninterrupted operation ofour information systems.
Organizational Structure for Information Security Management
Information Security Publicity
Information SecurityManagement CommitteeProject Management O?ce
Subsidiaries and branchesExternal suppliersGroup Headquarters
Implementing information security projects
Making decisions on signi?cant issues relatedto information security projectsCoordinating resources for information securityprojects?Overseeing the operation of the informationsecurity management systemConducting progress management ofinformation security projectsSupervising the operation of informationsecurity projects
?Performing daily security operations andmaintenance, including terminal securityprotectionConducting terminal security protection toprevent data leaksIdentifying, tracking, and investigating securityincidentsManaging the security risks of informationassets
Assisting in project implementation anddeliveryConducting regular inspections andaddressing after-sales complaints asneededDisclosing major information securityhazards
Setting information security goals andoutlines construction pathwaysCoordinating with departments and externalsuppliersOrganizing regular safety evaluations andreportsAssigning tasks and tracking progress
Case
Winner Guilin’s successful execution of the 22nd National “Work Safety Month” activities
During the Reporting Period, Winner Guilin crafted the 2023 Safety Month Work Plan around the theme of "Everyone EmphasizesSafety and Everyone Able to Respond to Emergencies." Tailoring activities to fit actual production, operational, and safetymanagement needs, Winner Guilin successfully executed all Work Safety Month initiatives as planned. These included:
A prize-winning "Safety Hazard Identi?cation" activityEmergency drills
Internal education activities
We actively carry out information security promotion through Internal education activities, Internal surveys and interviews, and externaltraining, continuously strengthening employee information security awareness
External training
Honors and Awards
4344
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Advancing Together with Partners
Promoting industry progressThe Company places a high priority on R&D and innovation, constantly improving our capability to collaborate with academia and researchinstitutions. This enhances the quality of our research and development, speeds up the translation of ?ndings into practical applications,and involves us actively in establishing various standards to drive high-quality industry development.
Case
Case
Case
Bionic arti?cial cornea research with Southern University of Science and Technology
Landing two research outcomes with Wuhan Textile University
Home wear comfort study with Tianjin Polytechnic University
In November 2023, a joint project with Southern University of Science and Technology on bionic arti?cial corneas was approvedas a key scienti?c and technological initiative in Shenzhen. This research into high-value-added medical bionic implant materials,including collagen applications, received RMB 8 million of special funds for scienti?c and technological research.
Winner Medical has worked with Wuhan Textile University on two key projects: eco-friendly bleaching technology for cotton ?bresand products, and pre-research on the industrialization of Bletilla polysaccharide dressings. These projects have e?ectively pooledinnovative resources, environments, and mindsets to facilitate the translation of innovation into productive outcomes.
Purcotton collaborated with Tianjin Polytechnic University to investigate the wearcomfort of home clothing. This study involved real-person trials to assess thefabric’s performance and the design of the clothing. Flexible sensors measuredthe pressure in key areas during everyday wear, and these objective data pointswere combined with subjective human evaluations. Through data analysis andmathematical modelling, we’ve managed to quantify the comfort of wearing morescienti?cally.
Participation in Standard SettingOver the Reporting Period, the Company contributed to the development of 15 standards, with 12 already published andimplementedIndustry-University-Research collaborationWe engage in collaborative projects with universities and scienti?c research institutes, such as Huazhong Agricultural University, WuhanTextile University, Southern University of Science and Technology, Tianjin Polytechnic University, Jiangnan University, and SuzhouUniversity. These partnerships focus on the collaboration between industry, research, and education in cutting-edge areas like cotton genebreeding and arti?cial blood vessels, facilitating the conversion of scienti?c breakthroughs into tangible productivity.
Standard NameCategoryStatusSingle-use Protective Clothing for Medical UseNational StandardPublishedProtective Face Mask for Medical UseNational StandardPublishedFootwear for Older PeopleNational StandardPublishedSterile Surgical Films for Single UseIndustry StandardPublishedChidren's FootwearGroup StandardPublishedTechnical Requirements for Carbon Footprint Assessment of Soft
Nonwoven Towels
Group StandardPublishedTechnical Requirements for Carbon Footprint Assessment of Sanitary
Napkins
Group StandardPublished
Technical Requirements for Carbon Footprint Assessment of DiapersGroup StandardPublishedTechnical Requirements for Carbon Footprint Assessment of Apparel –
Bras
Group StandardPublished
Technical Requirements for Carbon Footprint Assessment of TowelsGroup StandardPublishedTechnical Requirements for Carbon Footprint Assessment of T-shirtsGroup StandardPublishedTechnical Requirements for Carbon Footprint Assessment of Cotton FabricGroup StandardPublishedPlaster BandageIndustry StandardTo be Pulished
Technical Requirements for the Use of Disposable Surgical DrapesGroup StandardTo be PulishedRequirements and Test Method of Thermal Insulating Performance of
Home Textiles
National StandardIn Preparation
Winner Medical, in collaboration with both upstream and downstream enterprises and the broader community, aims to foster a positivesupply chain cycle within the cotton industry through research and cooperative cultivation, enhancing production capabilities, andinnovating product development. This approach extends our commitment to responsibility across the supply chain, leading the way inbuilding a sustainable industrial chain.
Home wear comfort study
4546
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
ConductingPrudentGovernance
GivingBack to theSocietyPursuingExcellence
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Developing a responsible supply chainWe have continuously improved our procurement management system and supplier management mechanisms. During the ReportingPeriod, we revised existing systems such as theSupplier Management Procedure,Supplier Classi?cation and Grading Management, SupplierInformation Management, andSupplier Exit Management Mechanism. In addition, we also introduce new management systems includingDeveloping Plans for New Suppliers,New Supplier Admission Review Specification,Supplier Performance Management, andSupplierOn-site Audit Speci?cation. By implementing full lifecycle management, we collaborate with our suppliers for mutual growth and build asustainable supply chain.
Suppliers in total
Responsible procurementOur commitment to responsible procurement emphasizes environmental and social performance, requiring suppliers to adhere toourSupplier Management Systemand sign the Integrity Commitment.We review suppliers in accordance with social responsibilityrequirements. This approach ensures that our values of social responsibility, business ethics, environmental protection, and labour rightsare extended throughout the supply chain.
Case
Promoting the carbon footprint certi?cation of Yuyue Home Textile, Shandong
Yuyue Home Textile Co., Ltd., with its comprehensive textile industry chain encompassing R&D, design, and the production ofspinning, weaving, printing, dyeing, and sewing, ranks among China’s top 30 printing and dyeing industries for ten years in arow. In collaboration with Yuyue Home Textile, Winner Medical has produced eco-friendly four-piece cotton satin bedding sets.Every stage of production, from weaving to sewing, prioritizes environmental protection and sustainability. The product has alsocompleted carbon footprint certi?cation.
Geographical distribution of suppliersthe Chinese
MainlandHong Kong,Macao, Taiwan
overseasregions, or otherclassi?cations
Percentage of suppliers signingintegrity agreements
Percentage of suppliers conductedenvironmental and social impactassessments
Percentage of new suppliersconducted environmental andsocial impact assessments
%
%
%
Empowering supplier training
Building a digital supply chain
Committed to mutual growth and beneficial partnerships, we consistently offer training and guidance to our suppliers. This approach,grounded in win-win cooperation, aims to enhance their capabilities, thereby contributing to the supply chain's robust and healthydevelopment.
We activate the SRM and SCM supplier collaboration system, synchronously improve the MDC and PLM data management systems, andpromote integration between various systems and modules. In doing so, in terms of digital management, the e?ciency of procurementexecution have been greatly promoted, and the price module have become more transparent.For end-to-end order delivery and inventory visualization management, we collaborate internally with IT departments to develop BIvisualization, and connect information data from demand planning to supply planning, thus reducing o?ine communication frequency,and improving operational e?ciency.
Supplier training
Supplier Life-cycle Management
Lifecycle
Performance
Appraisal
Access
Development
Elimination
RoutineManagement
4748
Practicing Green Developmentto Embrace Low-Carbon Lifestyle
Winner Medical is committed to aligning its growthwith green development trends. We’re setting astrategic goal towards “carbon neutrality” within ouroperations, and promoted demonstrative projects ongreen and low-carbon research. To achieve the goal, wetransform our supply chains, adjust our energy structureand innovate in our production methods. In our productR&D, we prioritize eco-friendly materials, especiallyadvocating for “cotton over chemical fibre” to satisfyconsumer demand for environmental protection with ourcommitment to green and sustainable development.
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
4950
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Enhancing Environmental Management
Environmental management systemWinner Medical has established the integrated environmental, health and safety management policy of "protecting the environment,preventing diseases and strictly complying with laws and regulations" and "work safety, green & low-carbon development, and thecontinuous pursuit of social trust". In addition, we implement the green development strategy as well as the environmental protectionpolicy of green, low-carbon and ecological development. In combination of national laws and regulations on ecological environmentalprotection, we have formulated and updated the Measures on
Environmental Management Standards, Rewards and Punishments,Regulations on Environmental Work Supervision, and Regulations on Energy Saving and Consumption Reduction Management, etc. tostrengthen our integrated environmental management capabilities.
Environmental management trainingWe are dedicated to elevating our environmental management, continually boosting the awareness and capability of our employeesand suppliers regarding environmental management. Specialized environmental management training sessions and drills are regularlyconducted for both employees and suppliers.
Environmental compliance managementThe Company applies for pollutant discharge in accordance with theMeasures for the Administration of Pollutant Discharge Permits (Trial)and theRegulations for the Administration of Pollutant Discharge Permits. Each branch has a pollutant discharge permit and registrationform. They discharge and monitor pollutants in accordance with the permits, and submit pollutant discharge permit implementationreports as required.
Raising environmental protection awareness
Environmental management frameworkIn terms of the organizational structure of environmental protection, the Company has set up a leading group on environmental protectionheaded by the vice president, which is the supervisory body for the Company's environmental protection work. The general manager ofeach subsidiary (branch) or the person in charge of the unit is the ?rst person in charge of the company's (unit's) environmental protectionwork, with a full-time environmental protection agency and full-time personnel. Together, they promote energy conservation andconsumption reduction.Environmental management systems
Winner Medical promotes ISO 14001 environmental management systems certi?cation. The Company organizes regular internal audits,management reviews and third-party audits to check and diagnose the operational effectiveness and compliance of its environmentalmanagement system, completion of environmental protection goals and targets, control of important environmental risks and otherenvironmental operations in an all-round manner, so as to improve environmental performance.ISO 14001 environmental managementsystems certi?cation coverage rate
Energy conservation and environmentalprotection investment
77.7
%
Environmental managementtraining sessions conducted duringthe Reporting Period
over RMB
million(including acquired companies)
Winner Medical and itssubsidiaries were notsubject to environmentaladministrative penalties
We regularly carry out varied training on environmental protection by multiple ways.Internally, we offer operation and management training on pollutant discharge permits,training on environmental impact assessments for construction projects, and knowledgesharing of sewage treatment led by external experts. Externally, we are also engaged in adiverse range of external environmental protection activities, including publicity, training, andvoluntary actions, aiming to bolster our team’s ecological conservation consciousness.
Green and environmentalinitiativesThe Company calls on allemployees to implementenergy conservation andemission reduction throughpractical actions on theWorld Environment Day,such as having green andlow-carbon travel and,saving resources.
Volunteer activities for environmentalprotectionThe Company organizes the volunteer health running activity forenvironmental protection themed "I am a Practitioner for a BeautifulChina", to promote the corresponding theme concept, and create astrong atmosphere of natural harmony, green health.
Environmental emergency drillsThe Company and its subsidiaries have established leading groups for environmental emergencies and developed theEnvironmentalEmergency Response Plan. We have enhanced our emergency response systems for environmental pollution accidents, bolstering ourability to manage major environmental pollution accidents and ensuring operational safety. Regular drills for environmental emergenciesare carried out to prevent and minimize the occurrence of accidents.Case
Winner Medical (Shenzhen) conducted a "hazardous waste leakage" drillOn July 27, 2023, Winner Medical (Shenzhen) conducted a"hazardous waste leakage" drill. The on-site disposal process of thedrill took 30 minutes, e?ectively controlling environmental pollutionand personal injury caused by hazardous chemical leakage, provingthat the emergency rescue plan was scientific, applicable, andoperable.
The Scene of "Hazardous Waste Leakage" Drill
Volunteer RunningEnvironmental ProtectionInitiatives
Winner Medical complies with national environmental protection laws and regulations, processes pollutant discharge permits inaccordance with relevant technical speci?cations, and has established an environmental management system. Meanwhile, we implementenvironmental impact assessments, prepare emergency plans for environmental incidents, and continuously improve our environmentalmanagement capabilities.
5152
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherGivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Combating Climate ChangeAcross our product selection, design, and manufacturing processes, we diligently consider environmental factors,collaborate with industry chain partners for innovation,advocate for the development of green and low-carbon research anddemonstration projects, and promote comprehensive carbon management. In such way, we are committed to continuouslyimproving our ability to mitigate and adapt to climate change.
Carbon asset managementThe Company engages in the in-depth research on carbon peak and carbon neutrality. We proactively develop businessin carbon trading and have issued theCarbon Asset Management Measuresin accordance with relevant documents suchas theMeasures for the Administration of Carbon Emissions Trading
(Trial),” to establish a carbon asset managementsystem, and actively plan carbon trading actions.
Product carbon footprint certi?cationThroughout the design phase, the Company prioritizes environmental considerations, employing green technologies tominimize environmental impact. We check the carbon footprints of our products from cradle to grave according to thefour stages of the LCA lifecycle, and pass the carbon footprint certifications for products. In collaboration with leadingenterprises, we produce environmentally friendly products. The entire process, including weaving, dyeing, finishing, andsewing, is conducted with a focus on environmental protection and sustainability, with carbon footprint certified.The Company has obtained carbon footprint certification for cotton products such as cotton soft tissues, baby hand andmouth wet tissues, and baby robe products. In 2023, we continued to cooperate with internationally renowned third-party organizations and planned to carry out carbon footprint certification for medical products such as gauze sheets,gauze balls, gauze pads, and cotton non-woven fabric sheets.Greenhouse gas emission performanceWinner Medical has made significant strides in reducing greenhouse gas emissions through management and practices.These include optimizing vehicle usage plans and travel routes, promoting the use of electric vehicles, and progressivelyeliminating petrol-powered forklifts to reduce Scope 1 carbon emissions. Additionally, we have incorporated a carbonemission management feature into the Win+ platform’s energy management system, paving the way for intelligent anddigital carbon management.Carbon asset management system of the CompanyOrganizational structure
Carbon asset management plan
Carbon inventory
Rewards and penalties
Carbon management
The Carbon Asset Management LeadingGroup is responsible for building theCompany's carbon emission andcarbon asset management system,clarifying the responsibilities of thecarbon emission and carbon assetmanagement departments, andpromoting the Company's energysaving, carbon reduction and carbonasset optimization and upgrading. Eachbranch (subsidiary) will implement therelevant targets and plans as scheduled.
Each branch (subsidiary) shall establish and improve its internalassessment mechanism to supervise, inspect and assessthe energy saving and carbon reduction work of itself, andgive recognition and rewards to the collective and individualwho make outstanding contributions in low carbon efforts.Accordingly, the Company will impose penalties for those thatfail to pass the assessment.
Annual reports will be preparedand monthly carbon emissionsaccounting will be launched toform ledgers and submit a monthlycarbon emission report.
Branches (subsidiaries)that are included in thescope of governmenttransactions and thosethat are not included inthe scope of governmenttransactions will bemanaged separately.
We prepare annualaccounting reports oncarbon emissions inaccordance with therelevant regulations andfactors, and make regulardisclosure of carbonemissions information.
20212021
20212021
33,592
116,373
82,781
0.3432
20222022
20222022
76,276
180,691
104,415
0.2951
20232023
20232023
55,593
156,219
100,626
0.3589
Scope 1 GHG emissions
Total GHG emissions
Scope 2 GHG emissions
Emissions per unit of revenueUnit: tCO
e/RMB 10,000
Unit: tCO
eUnit: tCO
e
Unit: tCO
e
Data includes acquired companies
5354
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Optimizing Resource and Energy Use
E?cient use of energyIn compliance with theEnergy Conservation Law of the People's Republic of Chinaand other relevant regulations, we have developedrelevant documents such as theManagement Regulations on Energy Conservation and Consumption Reduction,and have established theEMS integrated energy consumption management system, including theEnergy Management Manual, theEnergy Conservation OperationControl Procedures, the Energy Data Collection Plan, the Annual Energy Conservation Measures Plan Listand theManagement Review Plan.In 2023, we introduced theOutline of Green Development Planand launched the Win+ energy online monitoring platform for real-timedata collection and online monitoring of energy consumption. We also executed a special energy-saving action plan with 34 energy-savingtransformation projects across 11 categories to enhance energy e?ciency and green energy use.During the Reporting Period, energy costswere saved by approximately RMB 4.04 million (excluding acquired companies such as Winner Guilin and Winner Pingan).
Water conservationIn our water-saving management throughout our production and operational processes, we enhance water resource efficiency andminimize water use risks. Moreover, we advance reclaimed water recycling projects to reduce water pollution. Our new plant of WinnerMedical (Jiayu) has invested more than RMB 4 million in building a reclaimed water recycling system, which is expected to achieve arecycling rate of over 60%.
Green o?ce
The Company advocates green o?ce, implements routine energy saving by seting energy-saving and environmentally-friendly reminders inpublic areas, and creating a green and environmentally-friendly workplace through digital o?ce promotion and lighting control.
Case
Winner Medical sets green plant benchmark in China
Energy Conservation Measures for Plants
Green Processing Techniques and Results
Winner Medical (Wuhan)z has continuously improved energy performance througha systematic approach by establishing and implementing an energy managementsystem and platform, passing ISO 50001 energy management system certi?cation,implementing energy consumption quota management and other improvementmeasures, thus achieving energy process control, and promoting the continuousimprovement of the energy management system. In 2023, the Winner MedicalFactory was awarded the honorary title of "Green Factory", recognising itsexemplary contributions to energy e?ciency, emissions reduction, recycling, andenvironmental preservation.
IndicatorUnit202120222023Non-renewableFuel
Petroleum or crude oilderivatives (such asgasoline, diesel, jet fuel,
and heating oil)
Gasoline consumption of the Company’s officialvehicles
ton of standard coal131231
Diesel consumption of the Company’s logisticsvehicles
ton of standard coal5532132
Natural gas (compressed natural gas, liquid natural gas, etc.)ton of standard coal20,52219,61315,418RenewableEnergy
Biomasston of standard coal00744EnergyPurchase
Electricity
Outsourced power (Chinese Mainland Grid)ton of standard coal17,15420,73318,905Outsourced power (southern China grid)ton of standard coal0703698Outsourced power (central China grid)ton of standard coal17,15420,03018,207Steamton of standard coal4,57415,04111,763
Energy Consumption Intensity
ton of standard coal/
RMB 10,000
0.11430.09050.119
Major TechniquesEnergy Saving and Carbon Reduction ResultsLow-Temperature Pretreatment(Cold reactor pretreatment and low-temperature oxygen bleaching)
Saved steam by 79%, water by 50%, electricity by 33%, and carbonemissions by 78%Wet Cloth Mercerizing ProcessSaved steam by 58%, water by 89%, and carbon emissions by 13%E?cient Water WashingSaved steam by 25%, water by 29%, and carbon emissions by 28%
Winner Medical(Wuhan) successfullyobtained ISO50001 EnergyManagementSystem
Motorrenovationfor e?ciencyimprovement
Waste heatrecovery and
utilization
Control
systemoptimizationClean energyapplications
The South District of Winner Medical (Huanggang) has renovated the permanent magnet energy-saving motors, replacing 8 motors with variable frequency drive permanent magnet synchronousmotors, totaling 679kW. The annual income from energy-saving and cost reduction amounts to RMB24,367,700.Qingshan Plant Area of Winner Medical (Chongyang) has built a 500 m
high discharge tank, newlyequipped with a 400t thermal energy recovery device, which can reduce sewage temperature andrecover thermal energy. The annual income from energy-saving and cost reduction amounts to RMB417,000.Winner Medical (Tianmen) has upgraded and renovated the automatic control of recycled water andhot water in two bleaching and stripping pots, as well as the control of waste cotton treatment fans.The annual income from energy-saving amounts to about RMB 20,000.A photovoltaic car shed (integrated project of photovoltaic power generation system, energy storageequipment, and charging station) is planned to be built in two new plant areas, with an expectedphotovoltaic installed capacity of 3.63 MW and an average annual green power generation of 3.33million kWh.
The Company promotes paperless office bybuilding digital projects such as OA systems,SRM procurement management, and Win+intelligent manufacturing platforms. The Win+intelligent manufacturing platform has beenemployed to three plants, with a coveragerate of over 85% for the main manufacturingprocesses and a replacement rate of over 50%for paper documents, saving over 13 millionsheets of paper annually.
The Company uses energy-saving power suppliesand lighting fixtures, and installs selective lightingswitches to achieve partitioned lighting. The lightsare turned on in need and they should be turned o?when people leave. When there is sufficient naturallight in public areas (such as locker rooms, restrooms,corridors, and stairwells), lights should not be turnedon to prevent "continuous lighting". The use of smartlighting systems is promoted. For example, energy-saving lamps and smart lighting systems are used innew buildings to reduce lighting power consumption.
"Paperless" o?ceEnergy-saving lighting control
Note: Data includes acquired companies
Winner Medical prioritizes the efficient utilization of energy, water, and production materials, driving cost reductions and efficiencyimprovements through digital innovations.
Honors and Awards
Certi?cate of "Green Factory"
5556
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Enhancing Emission ManagementAdhering strictly to theEnvironmental Protection Law, the Environmental ImpactAssessment Law, and other pertinent national laws and regulations, Winner Medicalestablishes and enforces environmental management regulations and protocols to overseeand regulate the Company’s pollutant discharge facilities and pollutant emissions anddischarge.
Gas emissionsWinner Medical diligently follows national emissions standards, such as theIntegrated Emission Standard of Air Pollutants(GB16297-1996),theEmission Standard of Air Pollutants for Boiler(GB 13271-2014), and theEmission Standards for Odor Pollutants(GB14554-1993), aimingto lessen the emission of gaseous pollutants and minimize environmental impact.
Liquid emissionsWinner Medical rigorously adheres to national emission standards, including theDischarge Standards of Water Pollutants for Dyeing andFinishing of Textile Industry(GB4287-2012) and theIntegrated Wastewater Discharge Standard(GB8978-1996), to mitigate the releaseof liquid pollutants and minimize environmental impact. We employ a comprehensive approach combining "manual testing, entrustedmonitoring, and online monitoring" for pollutant detection. Key subsidiaries responsible for producing wastewater discharge are fullyequipped with online monitoring systems. These systems are interconnected with relevant government departments for real-timesurveillance, and monitoring results are promptly published on the provincial pollutant platform.
Solid wastesWinner Medical meticulously segregates hazardous wastes from general industrialwastes as per the Directory ofNational Hazardous Wastes, establishing relevantprotocols for the management and disposal of hazardous and general industrial solidwastes produced during manufacturing processes.
During the Reporting Period, all licensedemission subsidiaries complied with the
emission standards for major pollutantssuch as exhaust gas and wastewater.
Boiler ExhaustEmissionsWe exclusively use natural gasboilers and conduct regularmonitoring in line with provisionsof pollutant discharge permits. Weprioritize eco-friendly boilers inthe selection process to decreasenitrogen oxide emissions.
ExhaustGases fromProduction
We employ a catalytic oxidation + activated carbon ande?cient RTO (Regenerative Thermal Oxidation) exhaust gastreatment process to meet pollutant discharge standards.Environmental protection facilities are maintained andmanaged by designated personnel, with comprehensiverecords of operation, maintenance, and regular monitoringconducted as per pollutant discharge permit requirements.
Case
Reclaimed water reuse system
The plant of Winner Medical (Huanggang) signi?cantly cuts water usage via a water circulation system. The production wastewaterprimarily originates from the spunlace (hydroentangling) process, degreasing/bleaching process, and the preparation of soft water.A substantial portion of the wastewater from the spunlace process is recycled back into production after treatment through thecirculation system. The remainder of this wastewater and that from degreasing/bleaching processes are directed to our own sewagetreatment station, where they undergo "hydrolysis acidi?cation + biological contact oxidation" treatment before discharge. Thiswastewater is subject to online monitoring to ensure compliance.
Disposal rate for both general industrialwastes and hazardous wastes
%20212021
202120212021
20212021
20,984
23.09
145.19
7.0
0.81
1.844
20222022
202220222022
20222022
20,053
24.44
155.34
5.54
0.363
2.65
20232023
202320232023
20232023
17,37519.65
156.28
8.85
0.38
2.77
Exhaust Gas Emissions(10,000m
)NOx(ton)
Total Wastewater(10,000m
)Chemical Oxygen Demand(ton)Ammonia Nitrogen(ton)
SO
(ton)PM2.5(ton)
Hazardous wastes include items such as spent containers,waste activated carbon, and biological wastes.These are stored in designated areas compliant with theStandard for Pollution Control on Hazardous Waste Storage
(GB18597-2023), meticulously recorded in a ledger, labelledappropriately, and regularly handed over to certifieddisposal agencies for centralized treatment.Moreover, specific management systems and emergencyprotocols are developed for hazardous wastes to mitigaterisks such as leakage.
Typically, solid wastes consistmainly of waste packaging andstickers, which are collected andprocessed by specialized recyclingagencies.General wastes are categorizedinto recyclable and non-recyclableitems, subsequently managedeither by recycling agencies ordisposed of by municipal sanitationdepartment.
General
SolidWastes
Hazardous
Wastes
5758
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Promoting Green Philosophy
Promoting an eco-friendly lifestyleDedicated to raising eco-awareness among employees and consumers, we advocate for a comfortable, healthy, and environmentallyfriendly life concept. Through initiatives like promoting sustainable cotton culture with natural, soft cotton, we inspire a greener way ofliving, letting the power of cotton ?ourish.
Supporting ecological conservationAs an environmentally conscious brand, Purcotton champions the use of eco-friendly materials and adopts green design principles, activelysupporting ecological conservation with concrete actions. We urge the public to protect our planet, engage in social welfare initiatives, andembrace the principles of sustainability.Case
Case
Case
Purcotton embarks on a green journey with “All the Way Forward” environmental advocacy documentary
“WE Eco Multi-purpose Cotton” campus initiative
Purcotton and Blue Ribbon’s Pop-up Installation Art Exhibition on Environmental Protection
Starting November 11, 2023, the environmental documentary series "All the Way Forward" aired on China Dragon TV at 21:00 everySaturday. In this series, Purcotton, as a green lifestyle partner, joined forces with celebrities Hu Ge, Liu Tao, and Chen Long. Together,they engage in hands-on public welfare environmental efforts, embarking on a journey of green and low-carbon practices. Theseries delves into a broad spectrum of ecological issues, ranging from the conservation of biodiversity and restoration of ecosystemsin Sanjiangyuan National Park to rescuing stranded whales and dolphins in Houhai Village, Hainan Province, and tackling marineplastic pollution. It emphasizes the safeguarding of various ecosystems, including mountains, seas, forests, farmlands, lakes,grasslands, and deserts.
In 2023, Purcotton launched the “WE Eco Multi-purpose Cotton” campus initiative, spreading the message of sustainable lifestylein 296 universities across 50 cities. This campaign utilized public welfare lectures, package design contests, cotton-themed paintingcompetitions, and online and offline campus green actions, fostering a deep connection between youth, nature, and artisticexpression of the passion for environmental protection, spreading the message of sustainable lifestyle.
Purcotton volunteers, alongside volunteers fromBlue Ribbon Ocean Conservation Associationand residents of Sanya City, collaborated withrenowned actors Hu Ge, Liu Tao, and Chen Longto tackle plastic pollution and transform wasteinto artistic statements in Houhai Village, Sanya,Hainan. They launched a pop-up art exhibition onenvironmental protection and plastic recycling.This artistic endeavour, inspired by the story ofa dolphin named "Huahua," sought to heightenawareness of marine wellness and motivatebroader action to safeguard our seas.
"All the Way Forward" Public Welfare Green Journey
“WE Eco Multi-purpose Cotton” campus initiative
A pop-up art exhibition showcasing installations crafted from recycled plastics
Focusing on "sustainable cotton" and "sustainable techniques," Winner Medical champions the development and application ofenvironmentally-friendly organic cotton and sustainable breeding techniques. Designing green products from the source, we embody theethos of “Purcotton Changes the World," committing to natural preservation, human health, biodiversity protection, and promoting thevirtuous circle of ecological system and sustainable development.
5960
Giving Back to the Societyto Build a Harmonious Society Together
Winner Medical ensures that all labor policiesand operations comply with the latest regulatoryrequirements, optimizes the remuneration and benefitsystem, and formulates remuneration incentivemechanisms. The Company also establishes a soundoccupational safety management system, and reasonablyarranges employee work hours and vacations. Meanwhile,the Company values employee mental health, organizesvarious cultural and team building activities, andprovides employees with a comfortable workplace, toenhance their sense of belonging and cohesion.
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
6162
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Keen on Public Welfare and CharityAs an enterprise with social responsibility, Winner Medical has always been activelyinvolved in social public welfare. For example, we develop a "public welfare donationproject procedure" and continuously establish e?cient donation channels and routes, toensure timely responding to major events and delivering required materials to designatedlocations and the public.
Winner Medical has organized a charitable donation activity targeting the elderly population, donating 5,424boxes of materials including respiratory protection products and adult care products, with a total value of RMB
3.85 million.
Purcotton has been awarded the title of "Children's Friendly Partner" for its donation of baby clothing,diapers, and other materials equivalent to RMB 22,000 to the Shenzhen Women and Children's DevelopmentFoundation; Purcotton has also donated mask supplies worth RMB 98,000 to the Foundation.Purcotton, in collaboration with Taobao and the China Aging Developmen Foundation, initiated the "SeniorSweetheart" charitable activity at the "2023 Double 11" Shopping Festival to show its care for the elderlyleft behind in rural areas. Purcotton donated adult pull-up pants worth RMB 50,000 and were awarded thehonorary title of "Caring Enterprise".As the "Super Captain" on the International Working Women's Day, NicePrincess of the Purcotton collaboratedwith Tmall to carry out a charitable project, to show their caring for girls in remote mountainous areas. Theyfilmed a charitable documentary, allowing more girls in mountainous areas to scientifically understandmenstrual knowledge, and donating 10,000 pairs of NicePrincess sleeping pants, each of which worth RMB 7.9.
We have donated 171 caring computer supplies tothe Guangdong Provincial Education Foundationto establish a computer laboratory, allowingchildren in impoverished mountainous areas haveaccess to computers to master practical computerskills, learn knowledge, and broaden theirhorizons.
Caring forchildren inmountainousareas
Caring forspecialgroups
Case
near RMB
million
During the Reporting Period, theCompany's annual charitabledonations amounted to
In December 2023, after the earthquake in Jishishan County,Gansu Province, Winner Medical and Beijing Public HealthFoundation donated over RMB 1 million in supplies, includingemergency kits, medical surgical masks, surgical gloves, cottonsanitary tissues, and air-soft cotton thermal storage sets.Purcotton and its sanitary napkin brand, NicePrincess, urgentlyactivated the disaster response and teamed up with the ChinaWomen's Development Foundation to donate 40,000 pairsof sleeping pants and 800,000 pieces of sanitary napkins tosupport medical institutions, disaster victims, and disaster reliefpersonnel in the earthquake-stricken areas. The total marketvalue of the donated supplies amounted to near RMB 2 million.
Assistanceto disaster-
strickenareas
Othercharitabledonations
Winner Medical and Purcotton donated high-quality health protectionproducts and cotton daily necessities worth RMB 854,100 for the 2023Shenzhen Women's Fashion "Micro Marathon" Competition.NicePrincess of Purcotton donated sanitary pads worth RMB 100,000to the University of Science and Technology of China, conveying the" Nice For Her" concept of NicePrincess.Under the contact of members dispatched by the Urban Administrationand Law Enforcement Bureau of Shenzhen Municipality, a counterpartassistance unit in Daba Town, Heping County, Heyuan City, Purcottondonated a batch of sunshade materials worth RMB 30,000 to thePeople's Government of Daba Town.
From June 16 to June 25, 2023, Winner Medical partneredwith six schools in Longhua District to deliver the "HealthKnowledge on Campus" public welfare courses forstudents. The courses, combining games and lectures,focused on the common health concepts including "handhygiene" and "trauma care". The courses enabled childrento realize the importance of hand hygiene and learn aboutthe handwashing techniques. They also learned how todeal with falls, bruises, animal bites, and burns, and how tocope with special situations in life correctly and calmly, thuscontributing to their healthy and positive development.Besides, Winner Medical donated over RMB1.13 million inhealth protection product, further ensuring a happy, safe,and healthy campus life for both teachers and studentswith our thoughtful care.
Creating Public Welfare Courses to Safeguard Children's HealthCase
Donated computers to Qingyuan village
Donated to the Gansu earthquake
Shenzhen Women's Fashion "Micro Horse"Competition
The "Health Knowledge on Campus" public welfare courses
6364
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherGivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Protecting Employee Rights andInterestsWinner Medical protects the rights and interests of employees in accordance with laws. We firmly oppose gender discrimination andforced labor, uphold transparency and fairness in our recruitment, and provide competitive remuneration for employees. We also respectand protect employee privacy, actively implement democratic management, and value occupational health, thus e?ectively enhancingemployees' sense of happiness, belonging, and security.
Compliant employment
In strict compliance with Chinese laws and regulations such as theLabor Lawand theLabor Contract Law, the Company respects andprotects human rights, and regulates employment procedures. We have revised theAnti-Discrimination Action Guidelines, and formulatedtheEmployee Handbook, theRecruitment Management Systemand other institutional provisions to e?ectively safeguard the legitimaterights and interests of employees. We also sign labor contracts with employees in accordance with the law, ?rmly prohibit child labor, resistall forms of forced labor, and provide equal employment opportunities to all candidates and employees.
Fair employment
In line with the principles of openness,fairness, avoidance of hiring relativesof employees, as well as two-wayselection, we adhere to the criteria ofintegrity & ability, fair competition andmerit-based selection, except for o?cialand collective transfers.
Diversi?cationWe insist on the "four highs" talentconcept and continuously explorediversified employee introductionstrategies, committed to buildinga dynamic and innovative team,respecting and appreciating employeediversity, and striving to create aninclusive and open workplace.
The Company clearly stipulates inthe labor contract that the Companyguarantees employees' rights to restand leave in accordance with nationalregulations and the Company'ssystem. If the Company violatesregulations in command and forcesrisky operations that endangerthe personal safety of employees,employees have the right to refuseand are entitled to make suggestions,criticize , prosecute or accuse.
Against forced labor andharassment abuse
Employee communicationThe Company actively creates a diversified employeefeedback platform and unblocks the channels for employeesto express their opinions and demands. Employees areallowed to reflect their demands and provide relevantopinions through the EMT meeting mechanism, rota talks,colleague bars, Win Circles, cultural ambassadors, andWinner Culture Talk.In 2023, based on the 2022 employee engagement survey,the Company focused on key needs and continuouslymade improvements and efforts around key measuressuch as "growth empowerment, employee care, employeecommunication, and shared values", striving to create abetter, more efficient and more enjoyable workplace foreveryone.
We conduct 6 health nursingknowledge lectures for multipleschools including Luoba MiddleSchool in Shixing County,Shaoguan City and in SinolinkPrimary School in Shenzhen
We donate 1,000 "Caring Kits forGoddess" to Longhua DistrictCharity Association, 122 boxesof protective masks to sanitationworkers, and 4,628 cooling veststo flexible employment groupsin Longhua Street
In the 2023 campus activity themed"Rural Courses about GuangdongMuseums", we actively supported thedevelopment of education and culturaland creativity in Luoba Town to facilitaterural vitalization, and received a letter ofgratitude
Case
Advocating to Clean Hands for a Healthy LifeForming the habit of disinfecting and cleaning hands is one of the effective measures to prevent and treat infectiousdiseases. On the occasion of the World Hand Hygiene Day, Winner Medical organized the "Hand Caring Day on May 5" seriesof activities. We organized lectures on hand hygiene knowledge for medical care personnel, a collection competition forinfection control slogans, fun games for science popularization, and a commitment of medical care personnel to handhygiene in cooperation with hundreds of hospitals and pharmacies across the country. Additionally, we provided training onhand hygiene knowledge and operations for patients. These were the most e?ective, economical, and simple ways to reducehospital infections, prevent respiratory infectious diseases, and enhance public awareness of hand hygiene.
Honors and Awards
Health care knowledge seminar aactivities
6566
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherGivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Remuneration and bene?tsThe Company highly values employee remuneration and benefits by continuously optimizing systems related to remunerationmanagement, and improving the employee bene?t system. In addition to the "?ve-insurance and housing fund", commercial insurance,employee purchase, and anniversary gifts, in 2023, we optimized the insurance structure and adjusted it to a combination of "employer’sliability insurance + accident insurance", creating a more favorable business environment while ensuring the health and safety of employees.
Occupational health
Job value assessment
The Company designs a fixed remuneration system with fixed salaries in line with market levels and oriented towards high performingemployees. The ?xed salary for core backbones is in the 50th percentile of the market, and their salary reaches the 75th percentile of themarket through performance bonus sharing.
Remuneration incentive mechanism
Case
Collaboration with Shenzhen Lansheng Brain Hospital to Carry out a Free ConsultationOn September 19, 2023, Winner Medical and Shenzhen Lansheng Brain Hospital held a symposium and free consultation. Six expertsled by Shenzhen Lansheng Brain Hospital provided a free consultation in the activity room on the 41st ?oor of Winner Medical. Theexperts patiently communicated and inquired about each consulting employee, and gave corresponding treatment suggestionsbased on their symptoms. They also popularized relevant medical and health knowledge and common sense of healthy living, andcarefully answered questions about other diseases. This activity was welcomed and acclaimed by the Company’s employees.
Honor
Winner Medical (Jiayu), Winner Medical (Chongyang), Winner Medical(Huanggang), Winner Medical (Wuhan) and Winner Medical (jingmen)have all obtained ISO 45001 occupational health and safetymanagement system certi?cationWork-related fatalities
Occupational diseases in thesubsidiaries of the Group
?We continuously optimize systemsrelated to employee remuneration,such as theRemuneration ManagementSystem, and the Management Systemfor Employee Performance andRemuneration, as well as policies suchas remuneration systems for varioussales positions and great promotionincentive plans. We insist on theprinciple of "fixing the grade by post,?xing the salary by grade, rewarding byperformance and changing the salaryby post", and evaluate and distributeremuneration according to the finalcontribution.
We establish a"strategy-organization-individual" closed-loop management performancemechanism. Organizationalperformance is assessed level bylevel to individual performanceby using the balanced scorecard.Individual performancecorrelates with organizationalperformance. Meanwhile,performance results are appliedto bonus allocation.
We adjust the target bonussystem to a performance sharingsystem and emphasize integratedteams rather than individualcontribution. A combination of"annual sharing bonus + short-termprocess incentives" is employedto effectively encourageemployees and promote theirperformance growth, thuseventually enhancing enterprisecompetitiveness.
The Company formulates and implements a management system for occupational disease prevention and control, strictly controls routineproduction, equipment operation, and employee work processes, regularly monitors occupational hazards in the workplace and conductsenvironmental testing for occupational health hazards within the scope. The Company also organizes health examinations for employeesin various positions who come into contact with hazardous chemicals, and takes measures such as safety education, accident prevention,occupational injury prevention, and employee health care to ensure the occupational health of employees.
total employees
,
Total new hires during theReporting Period
,
Total labor discrimination incidents
malefemale
aged 30 and belowaged 31 to 40aged 41 to 50aged 51 and above
19.84
45.06
28.48
6.62
31.53
68.47
?Genderstructure（%）
Age group
（%）
Free consultation
6768
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Supporting Employee Growth
Unblocking development channelsThe Company values employee growth and career development. Aligning with our strategic business needs and the "business partners"talent philosophy, we establish and improve relevant management systems, and provide a sound channel and supportive environment foremployees’career development.
Strengthening talent cultivationThe Company continuously re?nes its training system and actively carries out talent training projects with attention to employees'growthand development. In 2023, key projects such as the "Leadership Win," "Talent Win", and "Career Win" achieved with results, empowering theCompany's key business and enhance organizational e?ciency.
Job grade systemWe have established a comprehensive job classification management system and completed the person-job matching project. Thishas enabled the development of dual channels for management and professional growth, clarifying the "ladder", "path", and "ruler" foremployee promotion and development. In such way, guidance is provided for employee development, and outstanding employees areinspired to make rapid progress and promotion on the Company's value highland.
Post quali?cation systemWe have established a post-quali?cation system based on competency and behavior, solidifying our systematic talent management. Wealso unblocked professional career development channels and built a transition mechanism between management and professional tracks,achieving reasonable talent mobility.
Talent evaluation systemWe have established a standard talent evaluationsystem, and organized a talent review projectonce a year based on the Company's strategy.Evaluations are conducted on the leadershipand potential of employees. The evaluationresults serve as an important basis for employeeselection, capacity improvement, promotion,and other aspects.
"Career Win"
We provided online and o?ine training for new employeesin social recruitment. Such courses as the Introduction toWinner Medical, the Winner Medical's Corporate Culture,and the Winner Medical's Product Training are organized tohelp new employees quickly adapt to the new environment,and gain a holistic understanding of the team, the Company,its corporate culture, and its core business.
WIN-WIN Talent Model of Winner Medical
New employee onboarding
2023 China Talent Management Reform Pioneer Award for Purcotton
WIN Leadership ModelWIN Potential Model
LeadershipWINWINPotential
Core values: Hard work, innovation, self-criticism,
and sustainable development
Willing hugeInnovating strategyNumerous methods
Interpersonal insightInternal driveWise
Talent view:
High quality, high e?ciency, highperformance, and high return
WiseWise Analytical ability[depth]
Interpersonal Insight[Self]-insight
Internal drive Rapidlearning [performance]Internal drive [intrinsic]
Broad perspective[breadth]
Interpersonalunderstanding of[others]Insight
Never-stopWIN
Potential
Willing hugeCareer passionGood at managementGood at decision-making
Solid professionalfoundationWell-trained management leadershipInnovatingstrategy
NumerousmethodsWIN
Winner Medical prioritizes talent cultivation. We continuously optimize talent allocation, establish a scienti?c talent management system,and have formulated theWinner Medical Training Management Systemand theManagement Measures of Winner Medical for InternalTrainers. These measures facilitate strategic implementation, enhance the Company's core competitiveness, and achieve mutual growthand development between Winner Medical and our employees.
Winner Medical Post-Quali?cation System
Winner Medical’sQuali?cation Standardscompetence
Channel and path
Basic conditions(Experience, length of service, performance, and key events)
Core competency (channel capability)
behaviorProfessional Code of Conduct 1Knowledge and skills(Knowledge list, and skill List)
Professional Code of Conduct NCorporate code of conductPlatform building(Product reuse + institutional process building)
Organizational contribution(Knowledge sharing + talent cultivation)
6970
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Project approval procedure
Training coveragerate
Training hours forall employees
Average duration of employee training(including the companies acquired)Managementpersonnel
Employees forgeneral purposes
hours
%
6099.56392,
As at the end of the Reporting Period,
Members of the Winner Charity Associationin total
,
with a membership rate of
%
Number of trainees for di?erent ranks of employees
Caring for the Life of EmployeesWinner Medical insists on the employee-oriented principle. Specifically, we show our care toemployees by carrying out themed festival activities, fun team building events, eight employeeclub activities, heartfelt birthday celebrations, and celebrating for important festivals and personalmilestones. Regular indoor and outdoor sports and health activities and lectures are organized, andthe Winner Charity Association is established to care for the physical and mental health of employeesand help employees in difficulties. These practical actions enhance the sense of happiness andbelonging among our employees.Case
Spreading Warmth and Hope with Love
Winner Medical holds the "Lightingup Small Wishes" activity, where awish can be made online and ful?lledoffline. This initiative aims to grantpositive desires and spread warmthto everyone. Since its launch, wehave received over a hundred wishesfrom our employees. In line with theprinciples of "exerting our humbleabilities to transmit positive energy"and "serving the people with concreteactions", the Company utilizes variousmeans to make their wishes a reality.Even wishes outside the typical scopeof fulfillment receive a response.Finally, while considering the numberof online likes, we realized a total of 58positive-energy small wishes.
Winner Charity Association
Online and offline teaching in various teaching modules aredesigned to empower the training for new graduates. Thecurriculum covers cultural inheritance, product & business,institutional norms, and career shaping. Such training helps newgraduates quickly integrate into the Company and successfullygrow into workplace professionals at Winner Medical.
Spring seedling training camp
“Talent Win”
The "Excellence Team Leader Training Camp" was held fromMarch to June 2023, attended by outstanding team leadersfrom different production subsidiaries. This has laid a solidfoundation for improving the on-site management ability offrontline management leaders (workshop team leaders) in themanufacturing segment of the Company, reserving a talentpool for management, and building an excellent team.
Excellence team leader training camp
The leadership advancement training project themed"Leadership Win" was rolled out from May to September 2023.This project empowered participants from four dimensions: SP,BP, operation, and management. Meanwhile, internal trainers,industry experts, and professional external lecturers jointly gaveinstructions, thus comprehensively expanding the horizons ofparticipants, enriching their management ideas and methods,and providing strong support for organizational operations.
Leadership advancement training camp
Memberassistanceprojectsubmission
Supplementation,collectionand review ofinformation
Voting by theevaluationcommittee
Review bythe executivepresident
Approved by thechairman
Publicity to allsta?
Assistance funddistributionMembers of theCharity Association
The Group HumanResources ManagementCenter where thedepartment of theapplicants for assistanceare located at
Managementcommittee of theCharity Association
Executive presidentof the CharityAssociation
Chairman of theCharity Association
Overview ofassistance projects
Group ?nancialmanagement center1352467
During the Reporting Period
invested in assistance fundsfor employees in needRMB
,
“Leadership Win”
During the Reporting Period,
Assistance funds for employees in theWinner Charity Association
RMB
,
"Lighting up Small Wishes" Activity
7172
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety Together
GivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Love
assistance
Basketball
club
Praising
cards
Badmin
ton
activities
7172
Free
consultation
Team
building
activity
in
wutong
m
ountain
G
ift
package
for
Dragon
Boat
Festival
Employee
fun
activit
ie
s
to Build a SolidDevelopmentFoundation
to Build aHarmoniousSociety TogetherGivingBack to theSocietyPursuingExcellenceConductingPrudentGovernance2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.to EmbraceLow-CarbonLifestyleto SpearheadIndustryAdvancement
PracticingGreenDevelopment
Feedback
7374
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Outlook
ESG KeyPerformanceIndicators
Index
OutlookESG Key Performance Indicators
Environmental
Addressing climate change
Energy and water resource management
Hazardous emissions and waste
2024 is a year teeming with both challenges and opportunities. This year, we will remain steadfast in our core principles: quality is superiorto profit; brand is superior to speed; social responsibility is superior to corporate value. Embracing market changes, we will seize newopportunities, adapt to new environments, and venture into new markets with our innovation of new technologies. We will develop newproducts, and cater to new consumer demands, marching towards high-quality development with an even more positive outlook.Winner Medical will unwaveringly pursue our core strategy of leading products and excellent operation. In the medical consumables sector, wewill continue to enhance product quality, bolstering research and development, and addressing the evolving needs of the medical industry. Inthe realm of consumer goods for healthy living, we will further drive product excellence and enhance user experience.Environmental protection and sustainable operation are principles we will always uphold. We are dedicated to crafting green products,advancing the development of biodegradable products, and actively supporting the national carbon peak and neutrality strategy withinitiatives like "sustainable cotton," "sustainable techniques," and "green plant". Our aim is to lead the trend of big health and achieveharmony between people and the environament.Furthermore, we are committed to fulfilling our social responsibilities, focusing on employee growth and welfare, enhancing employeesatisfaction, and strengthening partnerships with governments, communities, and charitable organizations. Together, we aspire to advancesocial welfare undertakings and contribute to a harmonious society.In 2024, Winner Medical will embark on a new journey with a relentless pursuit of excellence, a profound commitment to environmentalprotection, and a deep sense of social responsibility.
ESG KPIsUnit20222023
Energy consumption intensitytce/RMB 10,0000.09050.119Gasoline used for o?cial vehicles among self-owned vehiclestce1231Diesel consumption of self-owned logistics freight vehiclestce32132Natural gas (compressed natural gas, liquid natural gas, etc.)tce19,61315,418
Biomasstce0744Total purchased electricity ( - Chinese Mainland)tce20,73318,905
Steamtce15,04111,763
ESG KPIsUnit20222023
Total exhaust gas emissions10,000 m
20,05317,375（NOx）Nitrogen oxides（NOx）ton24.4419.65（SO
）Sulphur dioxide（SO
）ton0.360.38Particle matter (PM2.5)ton2.652.77Total amount of wastewater10,000 m
313308Chemical oxygen demand (COD)ton155.34156.28Ammonia nitrogenton5.548.85
展望
Note: The above data includes acquired companies.
Note: Data includes acquired companies.
Outlook
ESG KeyPerformanceIndicators
ESG KPIsUnit20222023Greenhouse gas emissions (Scope 1)tCO
e76,27655,593Greenhouse gas emissions (Scope 2)tCO
e104,415100,626Total greenhouse gas emissionstCO
e180,691156,219Greenhouse gas emissions per unit of incometCO2e/RMB 10,0000.29510.3589
Feedback
7576
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Outlook
ESG KeyPerformanceIndicators
Index
Governance
Corporate governance
Employee management
Employee training
ESG KPIsUnit20222023
Shareholders’Meetings-13 Board Meetings-68Meetings of the Supervisory Board-36
Number of directors-77Number of female directors-22Number of independent directors-33
ESG KPIsUnit20222023Total number of employees -10,47912,997Employee labor contract signing rate%100100Employee social insurance coverage rate%100100Labor discrimination incident occurred-00
ESG KPIsUnit20222023Total training hours for all employeeshour374403Average employee training hours(including acquired
subsidiaries)
hour13.79.5Employee training coverage rate%93%89%
Social
Technology R&D and innovation
Work safety and service quality
ESG KPIsUnit20222023
Technology R&D investmentmillion488322Number of R&D personnel -1,5881,259Patents obtained in total -1,0641,375Invention patents obtained in total -110140Utility model patents obtained in total-610810Design patents obtained in total -344425
ESG KPIsUnit20222023Number of administrative penalties due to work safety issues -00
Number of major work safety accidents-00Number of safety inspections conducted time89Number of work safety training conducted-149Number of safety drills conducted by each branchtime1618
Work-related fatalities-00Customer satisfaction%91.4392.74Customer complaint response rate%100100
Supply chain
ESG KPIsUnit20222023Total number of suppliers-842833Signing rate of supplier integrity agreements/ transparency
agreements
%99100
ESG KeyPerformanceIndicators
*
*Note: Data includes acquired companies.
Feedback
7778
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Outlook
ESG KeyPerformanceIndicators
Index
IndexGRI StandardsDisclosureReference
GRI 2: General Disclosures 2021
2-1Organizational detailsAbout This Report2-2Entities included in the organization's sustainability reportingAbout This Report2-3Reporting period, frequency and contact pointAbout This Report2-6Activities, value chain and other business relationshipsAbout Us2-7EmployeesProtecting Employees' Rights and Interests2-9Governance structure and compositionImproving Corporate Governance2-10Nomination and selection of the highest governance bodyImproving Corporate Governance2-11Chair of the highest governance bodyImproving Corporate Governance2-12
Role of the highest governance body in overseeing the management of
impacts
Improving Corporate Governance2-13of responsibility for managing impactsImproving Corporate Governance2-14Role of the highest governance body in sustainability reportingESG Management2-16Communication of critical concernsESG Management2-22Statement on sustainable development strategyESG Management2-29Approach to stakeholder engagementESG Management
GRI 203: Indirect Economic Impact 2016203-1Signi?cant indirect economic impactsEngaging in Charity
GRI 205: Anti-Corruption 2016205-2
Communication and training about anti-corruption policies and
procedures
Adhering to Business EthicsGRI 301: Materials 2016301-2Recycled input materials usedCSR Spotlight301-3Reclaimed products and their packaging materialsCSR Spotlight
GRI StandardsDisclosureReference
GRI 302: Energy 2016
302-1Energy consumption within the organizationHigh-e?cient Energy Use302-2Energy consumption outside the organizationHigh-e?cient Energy Use302-3Energy intensityHigh-e?cient Energy Use302-4Reduction of energy consumptionHigh-e?cient Energy Use302-5Reductions in energy requirements of products and servicesHigh-e?cient Energy Use
GRI 303: Water and E?uents 2018
303-2Management of water discharge- related impactsWater Conservation303-4Water dischargeWaste Management
GRI 304: Biodiversity 2016304-2Signi?cant impacts of activities, products and services on biodiversitySupporting Ecological Protection
GRI 305: Emission 2016305-1Direct (Scope 1) GHG emissionsGreenhouse gas emissions performance305-2Energy indirect (Scope 2) GHG emissionsGreenhouse gas emissions performance305-4GHG emissions intensityPerformance305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant air emissionsGaseous E?uent
GRI 306: Waste 2020306-2Management of signi?cant waste-related impactsSolid Waste306-3Waste generatedSolid Waste306-5Waste directed to disposalSolid Waste
GRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteriaBuilding a Responsible Supply Chain
GRI 401: Employment 2016401-2Bene?ts provided to full-time employeesCaring for Employee Life
Index
Feedback
7980
2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.
Outlook
ESG KeyPerformanceIndicators
Index
GRI StandardsDisclosureReference
GRI 403: Occupational Health and Safety 2018
403-1Occupational health and safety management systemOccupational health403-2Hazard identi?cation, risk assessment and incident investigationOccupational health403-3Occupational health servicesOccupational health403-4
Worker participation, consultation, and communication on occupational
health and safety
Occupational health403-5Worker training on occupational health and safetyOccupational health403-6Promotion of worker healthOccupational health403-7
Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships
Occupational health403-8
Workers covered by an occupational health and safety management
system
Occupational health403-9Work-related injuriesOccupational health403-10Work-related ill health
GRI 404: Training and Education 2016404-1Average hours of training per year per employeeSupporting Employee Growth404-2
Programs for upgrading employee skills and transition assistance
programs
Supporting Employee GrowthGRI 405: Diversity and Equal405-1Diversity of governance bodies and employeesCompliant employment
GRI 406: Non-Discrimination 2016406-1Incidents of discrimination and corrective actions takenCompliant employment
GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaBuilding a Responsible Supply Chain
GRI 416: Customer Health and Safety 2016
416-1
Assessment of health and safety impacts of product and service
categories
Ensuring Work Safety
GRI 417: Marketing and Labeling 2016
417-1Requirements for product and service information and labelingBuilding a Responsible Supply Chain
Feedback
1. What's your overall evaluation of this report?
□ 1 □ 2 □ 3 □ 4 □ 5
2. Does this report re?ect the signi?cant impact of Winner Medical on the economy?
□ 1 □ 2 □ 3 □ 4 □ 5
3. Does this report re?ect the signi?cant impact of Winner Medical on the environment?
□ 1 □ 2 □ 3 □ 4 □ 5
4. Does this report re?ect the signi?cant economic impact of Winner Medical on the society?
□ 1 □ 2 □ 3 □ 4 □ 5
5. Does this report re?ect the corporate governance of Winner Medical?
□ 1 □ 2 □ 3 □ 4 □ 5
6. What's your overall evaluation of the extent of information disclosure in this report?
□ 1 □ 2 □ 3 □ 4 □ 5
7. What's your overall evaluation of the quality of the written presentation in this report?
□ 1 □ 2 □ 3 □ 4 □ 5
8. What's your overall evaluation of the design style of this report?
□ 1 □ 2 □ 3 □ 4 □ 5
9. Which topics in this report have attracted your attention the most?
10. Do you have any other comments or suggestions about this report?
Dear readers,Thank you for reading the 2023 Environmental, Social and Governance Report of Winner Medical Co., Ltd. In order to provide youand other stakeholders with more professional and valuable CSR information, please assist us in completing the questions in thefeedback form so that we can further improve our social responsibility and sustainable development management. Please ratethe following questions on a scale of 1 to 5 (1 being the lowest and 5 being the highest).
Your contact information: Name:
Tel: E-mail:
Company: Job title:
Fax:
Feedback
Address：42F, Building 2, Huilong Business Center, Beizhan Community Workstation, Minzhi Subdistrict, Longhua District, Shenzhen, Guangdong ProvinceTel：0755-28138888 Fax：0755-28134588 0755-28134688Email：investor@winnermedical.comSales hotline：400-689-2896Quality service hotline：400-689-2898Website：www.winnermedical.cn