ToShareholders
Dearshareholdersandpartners:
It'stimetoreleaseourannualreportagain.Iamgladtosharewithyoufacetofacewhatwehaveachievedoverthepastyearandourstrategicplanforthenextthreeyears.OnbehalfofourBoardofDirectorsandthemanagementteam,Iwouldliketotakethisopportunitytoexpressoursinceregratitudetoourinvestors,customers,suppliers,employees,andpartnersfortheirlong-termtrustandsupportforWinnerMedical.Thepastyearhasbeenayearofchanges.Theuncertaintyoftheenvironmentleadstoinstabilityofwork,whichfuthercauseschangestotheplan.Oneoftheprimaryproblemsthatthemanagementteamfacesishowtomaximizebusinessgrowthdespiteofuncontrollableexternaldisturbance.Whatwedoistostaycalm,boostmoraleandrespondquickly.Undertheleadershipofthetopmanagementandadheringtotheenterprisespiritofstrivingtoworkunderdemandingconditions,themedicalbusinessteamrespondsquicklytotheurgentdemandsofemergencyeventstohelpaddresssocialproblemsandcontributetosocialstabilitywhileachievingsalesgrowth.Astheoperationofofflinebusinessisconstrainedbytheexternalenvironment,themanagementteamofConsumerGoodsguidestheofflineconsumptiontoonlineportalwithO2Omode.Thankstothesemeasures,ouronlinebusinessgrowsrapidlythroughthechannelofminiprogramofonlineshop.Sincethecustomersareunabletopersonallyexperienceorfeeltheproductsinthemodeofonlineshopping,wetakemultiplemeasurestostrengthentheironlineexperience.Inthisway,wecanmeetthepersonalizedneedsofconsumers,complementofflineexperiencewithonlinemeasures,andpreventperformancedeclineonayear-on-yearbasis.WiththeunremittingeffortsofMedicalteamandConsumerGoodsteam,theGrouphasachievedarevenueof11.351billionyuan,anincreaseof41%year-on-year,ofwhichthemedicalconsumablesbusinessaccountsfor7.203billionyuan,anincreaseof84%year-on-year,andthehealthyconsumergoodsaccountsfor4.055billionyuan,basicallyflatyear-on-year.Thenetprofitattributabletoshareholdersofthelistedcompanyis1.651billionyuan,anincreaseof33%year-on-year.In2022,althoughoursupplychainundertookunprecedentedpressure,WinnerMedicalandPurcottonensuredtheterminalsupplytothemaximumregardlessofcost,anddonatedalargeamountofmedicalsuppliestofrontlinehealthcareprofessionalsandsomecommunitiesinShenzhen,Shanghai,Henan,BeijingandHongKong.Thisisareflectionofourcorebusinessprincipleof“socialvalueovercorporatevalue”.In2022,despiteheavyworkloadandinconvenienttraffic,themanagementteamwenttoDeqing,Lixian,andGuilinfromShenzhenmultipletimesbydriving,andsuccessfullycompletedtheacquisitionofLongtermMedical,HunanPingan,GuilinLatexandotherexcellententerprises.Theseacquisitionshaveexpandedthecoverageofourmedicalproductsfromthreedimensions,increasedourbusinesschannelsandcustomersbothathomeandabroad,andfurtherimprovedthestrategiclayoutofone-stopmedicalconsumablessolutions,layingasolidfoundationforhigh-speedgrowthinthefuture.Ioftensayinthecompany,itisanextraordinaryachievementforapersontotakeordinarythingstotheextreme.Inthepastthreeyears,ourvolumeofproductionandsaledoubled.However,westillhaverealizedzeroqualityincident,forwehaveaccumulatedextensivequalitymanagementexperienceandsignificantlyimprovedourabilityduringthepast30years.Itisanextraordinaryachievementtosatisfyboththehealthcareprofessionalsinrespectofclinicalapplicationandtheconsumersinrespectofdailyuse.Inthepastthreeyears,thepressureonourproductioncapacityhasincreasedseveraltimeswiththedramaticalincreaseofdemandformedicalsuppliesinthemarket;meanwhile,asthecustomers’demandforspeedandaccuracyofdeliveryhasbecomemorestringent,thepressureonourlogisticshasincreasedseveraltimes.Whileaddressingthese“emergencydemands”,ouremployeeshaveimprovedtheirabilitytoadapttochanges,andourITanddigitaloperationcapacityalsohavebeenenhanced.Asaresult,ourcustomersatisfactionscoresaremuchhigherthantheindustryaverage,whichisalsoanextraordinaryachievement.
Inthepastthreeyears,theemergingbrandofPurcottonhasseenanunprecedentedpublichealthincident.Sincethen,weboldlyexploreavarietyofnewoperationmodels,andseekin-depthunderstandingofconsumerandmarketchanges.Withtheinherentadvantagesofmedicalbackground,all-cottonconceptandqualitygene,Purcottonfirmlyadherestotheconceptofcomfort,healthandenvironmentalprotection.Throughunswervinginnovationinbasicmaterials,andproductdevelopmentfromtheperspectiveofconsumers,wehavelaunchedanumberofnewproductsthatarehighlypopularamongconsumers.Wedevelopedthefirst-of-its-kindultra-softandultra-thickbeautypurecottontissueofhighcleaningpower,thefirstdisposableperiodpantiesandsanitarypadswithorganiccottonsurface,thenewsupercrinklecottongauzetowelsofzerosofteneradditive,bathtowels,air-conditioningquilts,95%cottonsocksandsoon.Thisisalsoanextraordinaryachievementtotaketheapplicationofcottonfibertotheextreme.Lookingback,bothIandthemanagementteamhaveidentifiedtheareastobeimproved.Bothinthemedicalfieldandthefieldofconsumergoods,thebenchmarkcompaniesoftheindustryfeaturemoreoutstandingoperation,andourpeershavebetterperformanceinsomesegments,whichmountsalotofpressureonme.Asoneoftheleadingcompaniesinthefieldofmedicalconsumables,wemustestablishcooperationwithmorehospitals,especiallywiththesecondaryandtertiaryhospitals.Tothisend,weneedtogivefullplaytoouradvantagesofcomprehensivecategories,elaborateservices,anduserengagement.Intheinternationalmarket,wewillrapidlyimproveourODMandOEMoperationandsalescapacitiestolayasolidfoundationforgoingglobal.Purcottonneedstolearnfromtheinternationalbrandsinrespectofproductoperations,improvetheresponsespeedofthesupplychain,increasetheseasonalsell-outrate,andreduceinventory.Inrespecttobrandoperationandmarketing,weneedtostayclosertoconsumers,speakthelanguagethatconsumers(especiallyyoungconsumers)understand,developproductsthatourloyalusersandtheyoungergenerationlove,designproductsthatarepopularbutnotvulgar,beautifulbutnotfancy,comfortablebutnotclumsy,tomeetthepursuitofconsumersforabetterlife.Inthenextthreeyears,China'seconomyfacesbothopportunitiesandchallenges.Inthefuture,wewilldirectlyrespondtoallkindsofenvironmentalchangeswithanopenmind,embracenewchallengesandnewopportunities,developnewtechnologies,launchnewproducts,andadapttonewconsumption.Wewillapplythecapabilitiesdevelopedinthepastthreeyearsintoourdailyoperation,and“turntheimpossibleintopossible”.Inthenextthreeyears,ourstrategyis“productleadershipandoperationexcellence”,andwewilladvancetowardshigh-qualitydevelopment.Productleadershipmeansthatwewillcontinuetobeconsumer-centricandmarket-oriented,creatingbest-sellingproductsthatarepopularamongconsumersandwillbecirculatedinthesocialmedia.Operationexcellencemeansapplyingnewtechnologies(suchasAItechnology)toachievesmartmanufacturing,digitalmanagementoftheentirechainofR&D,design,production,warehousing,marketinganddelivery,andmaximizingmanagement,efficiencyandeffectiveness.Inthenextthreeyears,inordertoensurethesmoothimplementationofthe“productleadershipandoperationexcellence”strategy,wehaveestablishedthe“fourhigh”talentstrategy-“highquality,highefficiency,highperformanceandhighreward”toincreasetalentdensityandaccelerateorganizationalevolutionsoastoachieveourstrategicgoals.Panningforgoldfromgrainsofsandisstrenuouswork.Wewillalwayskeephard-working,sticktoindustryandinnovation,focusonourmainbusinessandoperatepragmatically,promotinghigh-speedandsustainabledevelopmentofourcompany.Finally,onceagain,Iwouldliketothankallshareholdersandinvestors,customersandconsumers,partnersandallsocialsectorsfortheirtrust,supportandencouragement.Thankallemployeesfortheireffortsanddedication!Iwouldalsoliketoexpressmygratitudeforallpeoplepursuingthecauseofhealth,environmentalprotectionandsustainability!Thankyou!
LiJianquanChairmanandgeneralmanagerofWinner
MedicalApril23,2023
ImportantNotes,Contents,andDefinitions
ImprovelifequalityandreduceenvironmentpollutionwithcottonproductsWeprotecttheenvironmentwithcottonproducts
4.22WorldEarthDay
GuoJingjing
BrandAmbassadorofPurcotton
ImportantNotes
Theboardofdirectors,theboardofsupervisorsanddirectors,supervisorsandseniormanagementoftheCompanyherebyguaranteethatnofalseormisleadingstatementormajoromissionwasmadetothematerialsinthisreportandthattheywillassumealltheresponsibility,individuallyandjointly,fortheauthenticity,accuracyandcompletenessofthecontentsoftheannualreport.LiJianquan,theheadoftheCompany,FangXiuyuan,theheadofaccountingwork,andWuKezhen,theheadofaccountingbody(accountantincharge),guaranteetheauthenticity,accuracy,andcompletenessofthefinancialreportinthecurrentyearreport.AlldirectorsoftheCompanypersonallyattendedtheboardmeetingforreviewingthisreport.Theforward-lookingcontentsinthisreport,suchasthefuturedevelopmentstrategyandperformanceplanning,arethegoalssetsbytheCompany,whichareplannedmatters.Theachievementofthegoalsdependsonmanyfactors,includingmarketchange,whichisuncertain.SothesecontentsarenottheCompany'sprofitforecastforthenextyearanddonotconstituteasubstantialcommitmentoftheCompanytoinvestorsandrelatedparties.Investorsandrelatedpartiesshouldbefullyawareofrelatedrisksandunderstandthedifferencesamongplans,forecasts,andcommitments.Investorsareaskedtobewareofinvestmentrisks!Thepreplannedprofitdistributiondeliberatedandapprovedbytheboardofdirectorsisasfollows:taking419,737,649astheradix,theCompanywillsendcashdividendsof19.00yuan(taxincluded)and0bonusshare(taxincluded)toallshareholdersforevery10shares,convertingcapitalreserveinto4sharecapitalforevery10shares.
Contents
SectionIImportantNotes,Contents,andDefinitions ...... 4
SectionIICompanyProfileandMajorFinancialIndicators ...... 10
SectionIIIManagementDiscussionandAnalysis ...... 16
SectionIVCorporateGovernance ...... 88
SectionVEnvironmentandSocialResponsibility ...... 110
SectionVIImportantMatters ...... 122
SectionVIIChangesinSharesandShareholders ...... 134
SectionVIIIPreferredShares ...... 141
SectionIXInformationRelatedtoBonds ...... 142
SectionXFinancialReport ...... 143
DocumentCatalog(I)FinancialstatementscontainingthesignaturesandsealsofthepersoninchargeoftheCompany,theaccountinghead,andthepersoninchargeoftheaccountingbody(accountingmanager).(II)Theoriginalauditreportswiththesealoftheaccountingfirmandthesignaturesandsealsofthecertifiedpublicaccountants.(III)TheoriginalsofallCompanydocumentsandannouncementspubliclydisclosedduringthereportingperiod.
Definitions
| Term | Refersto | Definition |
| Company,WinnerMedical | Refersto | WinnerMedicalCo.,Ltd. |
| WinnerGroup | Refersto | WinnerGroupLimited,acontrollingshareholderoftheCompany |
| SequoiaXinyuan | Refersto | BeijingSequoiaXinyuanEquityInvestmentCenter(L.P.),apre-IPOshareholderoftheCompany |
| XiamenLeyuan | Refersto | XiamenLeyuanInvestmentPartnership(LimitedPartnership),apre-IPOshareholderoftheCompany |
| XiamenYutong | Refersto | XiamenYutongInvestmentPartnership(limitedPartnership),apre-IPOshareholderoftheCompany |
| XiamenHuikang | Refersto | XiamenHuikangInvestmentPartnership(LimitedPartnership),apre-IPOshareholderoftheCompany |
| XiamenZepeng | Refersto | XiamenZepengInvestmentPartnership(limitedpartnership),apre-IPOshareholderoftheCompany |
| WinnerMedical(Chongyang) | Refersto | WinnerMedical(Chongyang)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Jiayu) | Refersto | WinnerMedical(Jiayu)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Jingmen) | Refersto | WinnerMedical(Jingmen)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Yichang) | Refersto | YichangWinnerMedicalTextileCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Huanggang) | Refersto | WinnerMedical(Huanggang)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Tianmen) | Refersto | WinnerMedical(Tianmen)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| ShenzhenPurcotton | Refersto | ShenzhenPurcottonTechnologyCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| GuangzhouPurcotton | Refersto | GuangzhouPurcottonMedicalTechnologyCo.,Ltd.,awholly-ownedsubsidiaryofShenzhenPurcotton |
| BeijingPurcotton | Refersto | BeijingPurcottonTechnologyCo.,Ltd.,awholly-ownedsubsidiaryofShenzhenPurcotton |
| ShanghaiPurcotton | Refersto | ShanghaiPurcottonTechnologyCo.,Ltd.,awholly-ownedsubsidiaryofShenzhenPurcotton |
| QianhaiPurcotton | Refersto | ShenzhenQianhaiPurcottonE-CommerceCo.,Ltd.,awholly-ownedsubsidiaryofShenzhenPurcotton |
| Purunderwear | Refersto | ShenzhenPurunderwearSci-TechInnovationCo.,Ltd.,awholly-ownedsubsidiaryofShenzhenPurcotton |
| Winner(Huanggang)Cotton | Refersto | Winner(Huanggang)CottonProcessing&TradingCo.,Ltd.,awholly-ownedsubsidiaryofWinnerMedical(Huanggang) |
| WinnerMedicalMalaysia | Refersto | WinnerMedicalMalaysiaSdn.Bhd.,asubsidiarycontrolledbytheCompany |
| WinnerMedical(HongKong) | Refersto | WinnerMedical(HongKong)Ltd.,asubsidiarycontrolledbytheCompany |
| WinnerMedical(Heyuan) | Refersto | WinnerMedical(Heyuan)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| WinnerMedical(Wuhan) | Refersto | WinnerMedical(Wuhan)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| PureHB(Shanghai) | Refersto | PureHB(Shanghai)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| ChengduWenjianLikang | Refersto | ChengduWenjianLikangMedicalProductsCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany |
| GalaxyRealEstate | Refersto | ShenzhenGalaxyRealEstateDevelopmentCo.,Ltd. |
| Reportingperiod | Refersto | 2022:January1,2022toDecember31,2022 |
| LongtermMedical | Refersto | ZhejiangLongtermMedicalTechnologyCo.,Ltd.,ofwhichtheCompanyintendstoacquire55%equity |
| WinnerMedical(Hunan) | Refersto | WinnerMedical(Hunan)Co.,Ltd.,ofwhichtheCompanyholds68.70%equityafteracquisitionandcapitalincrement |
| WinnerGuilin | Refersto | WinnerGuilinLatexCo.,Ltd.,ofwhichtheCompanyhasacquired100.00%equity |
| JunjianMedical | Refersto | ShenzhenJunjianMedicalDeviceCo.,Ltd.,ofwhichtheCompanyhasacquired100%equity |
CompanyProfileandMajorFinancial
Indicators
I.CompanyInformation
| Stockabbreviation | WinnerMedical | Stockcode | 300888 |
| CompanynameinChinese | WinnerMedicalCo.,Ltd. | ||
| ChineseabbreviationoftheCompany | WinnerMedical | ||
| Companynameinforeignlanguage(ifany) | WinnerMedicalCo.,Ltd. | ||
| Companyshortnameinforeignlanguage(ifany) | WinnerMedical | ||
| LegalrepresentativeoftheCompany | LiJianquan | ||
| Registeredaddress: | F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,ShenzhenCity;WinnerIndustrialPark,No.660BulongRoad,LonghuaDistrict,ShenzhenCity | ||
| PostalcodeoftheCompany’sregisteredaddress | 518131 | ||
| Changehistoryofthecompany'sregisteredaddress | OnJune1,2021,theCompanycompletedtheregistrationofindustrialandcommercialchangeofregisteredaddressfrom“WinnerIndustrialPark,No.660BulongRoad,LonghuaNewDistrict,ShenzhenCity”to“F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,ShenzhenCity;WinnerIndustrialPark,No.660BulongRoad,LonghuaDistrict,ShenzhenCity” | ||
| OfficeaddressoftheCompany | F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,ShenzhenCity | ||
| PostalcodeoftheCompany’sofficeaddress | 518131 | ||
| Website | http://www.winnermedical.com | ||
| investor@winnermedical.com | |||
II.Contactsandcontactinformation
| SecretarytotheBoardofDirectors | Securitiesaffairsrepresentative | |
| Name | ChenHuixuan | LiuYanxiang,ZhangHeng |
| Contactaddress | F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,ShenzhenCity | F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,ShenzhenCity |
| Tel | 0755-28066858 | 0755-28066858 |
| Fax | 0755-28134688 | 0755-28134688 |
| investor@winnermedical.com | investor@winnermedical.com |
III.Informationdisclosureandkeepingplace
| Websiteofthestockexchangewherethecompanydisclosesitsannualreport | http://www.szse.cn/ |
| NameandwebsitesofthemediaonwhichtheCompanydisclosesitsannualreport | STCN,ChinaSecuritiesJournal,ShanghaiSecuritiesNews,SecuritiesDailyhttp://www.cninfo.com.cn/new/index |
| PlaceofpreparationoftheCompany’sannualreport | SecuritiesDepartmentoftheCompany |
IV.OtherRelevantInformation
AccountingfirmengagedbytheCompany
| Nameoftheaccountingfirm | BDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLP |
| Officeaddressoftheaccountingfirm | 4thFloor,No.61NanjingEastRoad,HuangpuDistrict,Shanghai |
| Nameofsignatoryaccountant | ChengJin,WuLihong |
ThesponsorinstitutionengagedbytheCompanytoperformthecontinuoussupervisionresponsibilityduringthereportingperiod
√Applicable?Notapplicable
| Nameofsponsorinstitution | Officeaddressofsponsorinstitution | Nameofsponsorrepresentative | Continuoussupervisionperiod |
| ChinaInternationalCapitalCorporationLimited | 27thand28thFloors,ChinaWorldOffice2,No.1JianguomenwaiAvenue,ChaoyangDistrict,Beijing | ShenLulu,WangShenchen | FromthedateofinitialpublicofferingtoDecember31,2023 |
ThefinancialadvisorengagedbytheCompanytoperformthecontinuoussupervisionresponsibilityduringthereportingperiod?Applicable√Notapplicable
V.MajorAccountingDataandFinancialIndicatorsWhethertheCompanyneedstoretroactivelyadjustorrestatetheaccountingdataofthepreviousyears?Yes√No
| 2022 | 2021 | Increase/decreasethisyearcomparedtothepreviousyear | 2020 | |
| Operatingincome(yuan) | 11,351,331,545.08 | 8,037,420,812.91 | 41.23% | 12,533,945,946.63 |
| Netprofitsattributabletoshareholdersoflistedcompanies(yuan) | 1,650,582,427.43 | 1,239,320,067.26 | 33.18% | 3,810,412,504.40 |
| Netprofitsattributabletoshareholdersofthelistedcompanyafterdeductionofnon-recurringprofitsandlosses(yuan) | 1,560,914,973.08 | 1,029,005,582.98 | 51.69% | 3,750,822,797.63 |
| Netcashflowfromoperatingactivities(yuan) | 2,983,472,230.27 | 871,689,901.93 | 242.26% | 4,767,496,287.39 |
| BasicEPS(yuan/share) | 3.90 | 2.91 | 34.02% | 9.8 |
| DilutedEPS(yuan/share) | 3.90 | 2.91 | 34.02% | 9.79 |
| Weightedaveragereturnonnetassets | 14.89% | 11.76% | 3.13% | 64.68% |
| Endof2022 | Endof2021 | Increase/decreaseattheendofthisyearcomparedtotheendofthepreviousyear | Endof2020 | |
| Totalassets(yuan) | 18,237,749,401.56 | 13,266,610,200.37 | 37.47% | 13,002,251,764.44 |
| Netassetsattributabletoshareholdersoflistedcompanies(yuan) | 11,704,606,570.71 | 10,674,912,166.80 | 9.65% | 10,453,934,045.43 |
TheCompany’snetprofitsbeforeorafterthedeductionofnon-recurringprofitandlossforthelastthreefiscalyears,whicheverislower,isnegative,andtheauditor’sreportforthelatestyearshowsthatthereareuncertaintiesabouttheCompany’ssustainableoperationability.?Yes√NoThenetprofitsbeforeorafterthedeductionofnon-recurringprofitandloss,whicheverislower,isnegative?Yes√No
| Totalassets(100millionyuan) | NetAsset(100millionyuan) |
VI.KeyQuarterlyFinancialIndicators
Unit:yuan
| Q1 | Q2 | Q3 | Q4 | |
| Operatingincome | 2,322,337,445.27 | 2,835,607,050.45 | 2,484,372,974.44 | 3,709,014,074.92 |
| Netprofitsattributabletoshareholdersoflistedcompanies | 357,101,020.81 | 535,722,482.33 | 357,469,296.76 | 400,289,627.53 |
| Netprofitsattributabletoshareholdersofthelistedcompanyafterdeductionofnon-recurringprofitsandlosses | 328,127,955.96 | 492,430,811.27 | 328,157,282.62 | 412,198,923.23 |
WhetherthereissignificantdifferencebetweentheabovefinancialindicatorsorthetotalsumofthemandthefinancialindicatorsrelatedtothequarterlyreportandsemiannualreportdisclosedbytheCompany?Yes√No
VII.DifferencesinAccountingDataunderDomesticandForeignAccounting
Standards
1.ThedifferencebetweennetprofitsandnetassetsinfinancialstatementsdisclosedaccordingtotheInternationalAccountingStandards(IAS)andChineseAccountingStandardssimultaneously?Applicable√NotapplicableNodifferencebetweennetprofitsandnetassetsinfinancialstatementsdisclosedaccordingtotheInternationalAccountingStandards(IAS)andChineseAccountingStandardsduringthereportingperiod.
2.ThedifferencebetweennetprofitsandnetassetsinfinancialstatementsdisclosedaccordingtotheOverseasAccountingStandards(IAS)andChineseAccountingStandardssimultaneously?Applicable√NotapplicableNodifferencebetweennetprofitsandnetassetsinfinancialstatementsdisclosedaccordingtotheOverseasAccountingStandardsandChineseAccountingStandardsduringthereportingperiod.
| Operatingincome(100millionyuan) | Netprofits(100millionyuan) |
Non-recurringProfitandLossItemsandAmount
√Applicable?Notapplicable
Unit:yuan
| Item | Amountin2022 | Amountin2021 | Amountin2020 | Description |
| Profitsandlossesonthedisposalofnon-currentassets(includingthewrite-offpartoftheprovisionforassetimpairment) | (39,993,220.64) | (9,080,387.29) | (25,914,736.75) | |
| Governmentsubsidiesincludedintocurrentprofitsandlosses,exceptthegovernmentsubsidieswhicharecloselyrelatedtothenormalbusinessoperationsoftheCompanyandconformtothenationalpoliciesandregulations,andcontinuouslygrantedinaccordancewithacertainstandardquotaoramount. | 84,859,103.35 | 105,132,971.30 | 74,592,796.36 | |
| InadditiontotheeffectivehedgingbusinessrelatedtotheCompany’snormalbusinessoperations,theprofitandlossfromfairvaluechangesarisingfromholdingtradablefinancialassetsandtradablefinancialliabilities,aswellastheinvestmentincomefromdisposaloftradablefinancialassets,tradablefinancialliabilities,andavailable-for-salefinancialassets. | 78,921,808.85 | 158,186,445.51 | 28,197,958.34 | |
| Incomeandexpenditureotherthanthosementionedabove | (13,810,132.25) | (2,530,827.65) | (4,844,628.50) | |
| Less:Amountaffectedbyincometax | 17,067,455.98 | 41,394,596.42 | 12,117,518.33 | |
| Amountofminorityshareholders'equityaffected(aftertax) | 3,242,648.98 | (878.83) | 324,164.35 | |
| Total | 89,667,454.35 | 210,314,484.28 | 59,589,706.77 | -- |
Otherprofitandlossitemsthatareconsistentwiththedefinitionofnon-recurringprofitandloss:
?Applicable√NotapplicableTherewasnootherprofitandlossitemsthatareconsistentwiththedefinitionofnon-recurringprofitandloss.Explanationondefiningthenon-recurringprofitandlossitemsenumeratedintheInterpretativeAnnouncementNo.1onInformationDisclosureofPublicSecuritiesIssuingCompanies-Non-recurringProfitsandLossesasrecurringprofitandlossitems?Applicable√NotapplicableNodefinitionofnon-recurrentprofitandlossitemsenumeratedinthe“InterpretativeAnnouncementNo.1onInformationDisclosureofPublicSecuritiesIssuingCompanies-Non-recurrentProfitsandLosses”asrecurringprofitandlossitemsduringthereportingperiod.
ManagementDiscussionandAnalysis
I.Theindustryinwhichweoperate
1.IndustrydefinitionAccordingtotheClassificationRulesofMedicalDevices(2015)(OrderNo.15oftheChinaFoodandDrugAdministration)andtheClassificationCatalogueofMedicalDevices(NoticeNo.104oftheChinaFoodandDrugAdministrationin2017),themedicaldressingsproducedandsoldbytheCompanybelongtothenursingandprotectivedevicesinmedicaldevices.AccordingtotheIndustryClassificationofNationalEconomy(GB/T4754-2017)andtheIndustryClassificationGuidelinesforListedCompanies(revisedin2012),theindustryoftheCompanyisspecialequipmentmanufacturingindustry(C35)inmanufacturingindustry(C).TheproductsoftheCompany'shealthyconsumergoodsincludepurecottontissues,sanitarypadswithpurecottonsurface,cottonwettissuesandothernon-wovenconsumergoods,babysupplies,babyclothing,adultclothingandothertextileconsumergoods.AccordingtotheIndustryClassificationofNationalEconomy(GB/T4754-2017)andtheIndustryClassificationGuidelinesforListedCompanies(revisedin2012),theconsumergoodsoperatedbytheCompanymainlybelongtothetextileindustry(C17)andthetextileandapparelindustry(C18)inthemanufacturingindustry(C).
2.Developmentoftheindustry
Withthestrengtheningofthenationalpolicysupportforthemedicaldeviceindustry,thesubstitutionofimportedmedicaldevicewithdomesticproductshasgraduallyacceleratedinrecentyears.Meanwhile,globalagingandchronicdiseasearebecomingincreasinglyprominent.AccordingtotheUnitedNationsWorldPopulationProspects2022,theglobalfertilityratescontinuetodecline.Inthe1950s,womenintheworldhadaround5childreneach.In2021,thishasdroppedto2.3.AccordingtotheNationalBureauofStatistics,anestimated280millionpeopleinChinawillbeaged60andover,representing19.8%ofthepopulationin2022.Adaptingthesocialmedicalenvironmenttothedemandofagingpopulationisbecomingamajortrend.Thishasprovidednewspaceforthedevelopmentofthemedicaldeviceindustryandwilldrivetheinnovationofthemedicaldeviceindustry.
(1)Developmentofmedicalconsumablesindustryathomeandabroad
Medicalconsumablesrefertothemedicalandhealthmaterialsusedintheprocessofclinicaldiagnosisandnursing,testingandrepair.Withawidevarietyofmodelsandwideapplication,theyareimportantmaterialsformedicalinstitutionstocarryoutdailymedicalandnursingwork.Fromtheperspectiveofvalue,medicalconsumablescanbedividedintohigh-valuemedicalconsumablesandlow-valuemedicalconsumables.SizeofmedicalconsumablesmarketinChinafrom2015to2025(100millionyuan)
Datasource:ChinaMedicalConsumablesMarketConditionsandInvestmentProspectSurveyReport2021-2026,ChinaMedicalDeviceBlueBook,ChineseMedicine,IBMReport
Sizeoflow-valuemedicalconsumablesmarketinChinafrom2015to2025(100millionyuan)
Datasource:ChinaMedicalDeviceBlueBook,ChineseMedicine,MagnaInformationCentre,IBMReportComparedwithhigh-valuemedicalconsumables,low-valuemedicalconsumablesaremainlymedicalhygienematerialsanddressings,injectionandpunching,medicalpolymermaterialsandproducts,medicaldisinfectionmaterials,anestheticconsumables,consumablesintheoperatingroomandmedicaltechnologyconsumables,withlowentrythresholdandfiercemarketcompetition.Duetothewideapplicationandbenefitfromtheimprovementofpeople’slivingstandardsandthecontinuousgrowthofmedicaldemandinChina,themarketspaceoflow-valuemedicalconsumablesishuge,andwillcontinuetomaintainhigh-speedgrowthinthefuture.AccordingtotheresearchandanalysisofIBM,itisestimatedthatthemarketscaleoflow-valuemedicalconsumablesinChinawillreach221.3billionyuanby2025(Terminalmarketprice).Inadditiontomedicaltechnologyconsumables,theexistingbusinessofWinnerMedicalhascoveredsixofthesevenmajorcategoriesoflow-valuemedicalconsumables.TheCompany'smedicalbusinessispositionedasaleaderinthemedicalconsumablesfield,providingone-stopmedicalconsumablessolutions.Low-valuemedicalconsumableshavethecharacteristicsofrigiddemandandhighusagefrequency.Relyingongoodbrandreputation,channelcoverageandstrongmanufacturingcapability,theCompanywillcontinuetoincreaseitsshareintheinternationalanddomesticmarkets.
1Marketdevelopmentofoperatingroominfectioncontrolproducts
Duetothegrowthofthenumberofsurgicaloperationsandthestrengtheningofinfectioncontrolmeasures,themarketofoperatingroominfectioncontrolproductsisgrowingcontinuously.AccordingtothestatisticsofCMI,thedomesticmarketsizeofoperatingroominfectioncontrolproductsisexpectedtoreachUSD3.688billionin2026,withanaverageannualcompoundgrowthrateof4.9%.Operatingroominfectioncontrolproductscanbedividedintoreusableproductsanddisposableproducts.Comparedwiththereusableproducts,thedisposableoperatingroominfectioncontrolproductscansignificantlyreducetheriskofcrossinfection.AccordingtoCoherent,disposableoperatingroominfectioncontrolproductscanreducetheriskofcrossinfectionduringsurgeryby60%.TheGuidetoOperatingRoomNursingPracticecompiledbytheOperatingRoomProfessionalCommitteeofChineseNursingAssociationalsorecommendstheuseofdisposableasepticproductsintheoperatingroomtoreducetheriskofcrossinfectionduringsurgery.Atthesametime,disposableoperatingroominfectioncontrolproductsalsohaveadvantagesinconveniencecomparedwithreusableproducts,whichmakesthedemandfordisposableproductsmoreactive.Comparedwithindividualproducts,customizedsurgicalpackageproductsmaybecustomizedaccordingtothetypeofsurgeryanddoctor'sneeds.Therefore,itmayimprovesurgicalefficiencyandsafety,avoidwasteofsurgicaldevicesandmaterialsandreducehospitalcostsandenvironmentalburdens.Forthesereasons,themarketofcustomizedsurgicalpackageisgrowingrapidly.AccordingtothestatisticsofCMI,themarketsizeofglobalcustomizedsurgicalpacksisexpectedtogrowtoUSD21.347billionin2026,withanaverageannualcompoundgrowthrateof10.2%.InChina,themarketsizeofcustomizedsurgicalpacksisexpectedtorisetoUSD1.504billion,withanaveragecompoundannualgrowthrateof12.2%,whichisquitepromising.
MarketdevelopmentofadvancedwounddressingproductsComparedtothetraditionalwounddressings,advancedwounddressingsareabletocontrolexudateandhavebetterbreathability.Inaddition,itdoesnotadheretothewound,doesnotdestroynewtissue,andmayavoidbacterialinfection.Thetypicalproductsincludehydrogeldressings,hydrocolloiddressings,transparentfilmdressings,foamdressings,alginatedressings,etc.Judgingfromtheglobaltrend,thedemandforhighvalue-addedandmultifunctionalmedicaldressingsmadeofnewmaterialsisincreasing,andtheadvancedmedicaldressingindustrywillusheringooddevelopmentopportunities.AccordingtotheresearchcompiledbyQYResearch,theglobaladvancedwounddressingsmarketsizereachedUSD5.846billionin2020,andisexpectedtoreachUSD7.230billionin2027.ThemarketsizeinChinaisgrowingrapidlyandthemajorfactorscontributingtothegrowthoftheadvancedwounddressingsmarketincludeincreasingagingpopulation,increasingawarenessofadvancedwounddressings,increasingnumberofroadaccidentsandburncases,andhighincidenceofdiabeticwoundsandchronicinfections.MostofthesalesoftheadvancedwounddressingenterprisesinChinaadvancedarestillfromoverseasmarkets.Afteryearsofdevelopment,theproductqualityhasreachedahigherlevelandgainedrecognitionintheinternationalmarket.Withtheincreaseofconsumptionbydomesticresidents,therisingawarenessofmedicalcare,thepopularizationofdomestichomecaresystem,andthegradualconvergencewithinternationaladvancedmedicalcareknowledge,theadvancedwounddressingsmarketinChinawillembraceapromisingfuture.Inrecentyears,therelevantgovernmentdepartmentsandagencieshaveintroducedsupportingpolicies,indicatingageneraltrendofreplacementofinternationalbrandsbydomesticbrands.Therewillalsobeagreaterspaceintheadvancedmedicaldressingsfieldfordomesticproducts,andthemarketconcentrationinChinawillfutherincrease.
3DevelopmentstatusofinjectionandpuncturedevicesmarketTheinjectionandpuncturedeviceindustryisdividedintotwocategories:infusionandpuncture.Themainproductsintheinfusioncategoryareinfusionsets,syringesandotherinfusiondevices.Mostofthemaredisposablemedicalsuppliesofhighdemand.Asoneofthemostconventionalmedicaldevices,syringesaremainlyusedforinjectingmedicineintohumanmuscles,subcutaneoustissueandvein.Punctureproductsmainlyrefertopunctureneedle,andarerichincategoriessuchasnursingandspecialistcategories.AccordingtoQYResearch,atpresent,China'sinjectionandpuncturedevicesindustrymainlypresentsthreemajordevelopmenttrends.Fromtheperspectiveofmarketconcentration,withtheriseofvolumeprocurementformedicalinjectionandpuncturedevicesattheprovincialandmunicipallevel,largeenterprisesareexpectedtooccupymoremarketbyvirtueofscaleadvantage,andthemarketofsmallandmedium-sizedenterpriseswillbefurthercompressed.Therefore,theindustryconcentrationwillcontinuetoincrease.Fromtheperspectiveofapplicationscenarios,itisextendingfromthedominantinfusionscenariostomorescenarios.Thedemandforpunctureneedleproductsarisingfromtheclinicalneedsmainlyincludesadvancedmulti-siteadvancedbiopsyneedles,andneedlesforassistedreproductionsuchaseggretrieval.Fromthetechnicalpointofview,advanced,intelligenceandsafetywillbecomethetechnicaldevelopmenttrendofinfusionandpuncturedevices.QYResearchestimatesthatthesalesofinjectionandpuncturedevicesinChinawillreach36.75billionyuanin2026.
4DevelopmentstatusofmedicallatexglovesmarketMedicalglovesaremainlydividedintolatexgloves,nitrilegloves,polyethylene(PE)glovesandpolyvinylchloride(PVC)glovesaccordingtothematerial;accordingtotheapplicationscenarios,theyaredividedintomedicalsurgicalglovesandmedicalexaminationgloves.Latexglovesfeaturehighelasticityandskin-friendliness,andoccupyanimportantpositioninmedicalgloves.AccordingtoQYResearchdata,theglobalmarketsizeofdisposablemedicalglovesreached$23.014billionin2021,withalatexglovesmarketsizeof$6.99billion,accountingfor30%.LatexglovesareexpectedtogrowataCAGRof5.84%during2021-2027andwillreachamarketsizeof$9,829millionby2027.
(2)DevelopmentofconsumergoodssegmentationindustryInrecentyears,aspeoplegrowmoreconfidentonthenationalculture,thedomesticgoodshaveinjectednewvitalityintothenationaleconomy,becominganimportantdrivingforceofconsumptionanddomesticdemand.Atthesametime,consumersareincreasinglyconcernedabouttheenvironmentalperformanceandsustainabilityofproducts,andtheriseofenvironmentalprotectionandlowcarbonconceptisalsodrivingthetransformationandupgradingoftheconsumergoodsindustry.InJanuary2022,theNationalDevelopmentandReformCommissionandotherdepartmentsissuedtheImplementationPlanforPromotingGreenConsumptiontocomprehensivelypromotethegreentransformationofconsumptioninkeyareas.Itismentionedinoneofthemaingoalsoftheplanthatby2025,theconceptofgreenconsumptionwillbedeeplyrootedinpeople'sminds;by2030,greenconsumptionwillbecomeaconsciouschoiceofthepublicandgreenlow-carbonproductswillbecomethemainstreamofthemarket.
DevelopmentofcottontissuesBecauseofitsmoreenvironmentalprotectionandlesssensitization,purecottontissuescanreplacetraditionalpaperproductsandtowelswithincreasingmarketpenetration.Accordingtothe“China’sCottonTissuesIndustryStatusandDevelopmentTrendResearchReport2019-2025”publishedbytheChinaIRNIndustryResearchInstitute,basedonproductattributes,productionefficiency,environmentalprotectionandotheradvantages,thecustomersgroupsofinfants,maternity,peoplewithsensitiveskinandpeoplewithfrequentbeautymakeupandskincareneedsaremorewillingtopayhigherpricesforhigh-qualityproducts.Sotheconsumerawarenessforcottontissueproductisrapidlyincreasing,promotingtherapidgrowthofmarketdemand.AccordingtoEuromonitorstatistics,China’scottontissuesmarketdemandreached48.76billionpiecesin2022,andisinahigh-speedgrowthphase.TheCompanydevelopedanewproductcategoryforcottontissuesandledtherapidgrowthofthecottontissuessegment.In2021,asthefirstdraftingunit,Purcottonparticipatedinthedevelopmentofnationalstandardsforcottontissues.Thankstotheincreasinglystrictenvironmentalregulation,thissegmentationwillbecomemorematureandstandardized.
DevelopmentofdisposablesanitaryproductsindustryAccordingtoEuromonitorstatistics,themarketofabsorptivecareproductsinChinaincreasedfrom151.1billionyuanto
170.6billionin2017-2022,withanaverageannualcompoundgrowthrateof2.5%.Amongthem,femalehealthcareproductsincreasedfrom82.3billionyuanin2017to99.1billionyuanin2022,withanaverageannualcompoundgrowthrateof3.8%.AsChinesewomen’shealthcareawarenessandconsumptionabilitycontinuetorise,consumersarepayingmoreattentiontoproductquality,functionality,materialsafetyandproductexperience,leadingtotheincreasingproportionofmedium-andadvancedsanitarynapkinconsumption.Themarketscaleofinfantdiapersdecreasedfrom58.3billionyuanin2017to52.8billionyuanin2022,withanaverageannualcompoundgrowthrateof-2.0%.Themarketscaleofadultincontinenceproductsincreasedfrom3.7billionyuanin2017to6.0billionyuanin2022,withanaverageannualcompoundgrowthrateof10.3%.SincetheoveralldevelopmentofadultincontinenceproductsinChinaislaggingbehindthefemininesanitarypadsandinfantdiapersmarket,itisstillintheintroductionperiod.Consideringmultiplefactorssuchasgrowinglifeexpectancypercapita,increasingnumberofelderlypopulation,increasingdisposableincomepercapitaandincreasinghygieneandhealthawareness,China’sadultincontinenceproductsmarketisatastageofrapidgrowthinsalesandmarketpenetration.Themarketscaleofwettissuesincreasedfrom6.7billionyuanin2017to12.6billionyuanin2022,withanaverageannualcompoundgrowthrateof13.4%.Atpresent,themarketisdominatedbybabywettissuesandgeneral-purposewettissues.Femalehygienewettissues,makeupremovalwettissues,homecleaningwettissuesandothercategoriesaccountforarelativelysmallproportion,sothereisalargemarketspacetodevelop.
3Developmentoftextileindustryandtextileclothingandapparelindustry
Thesalesofspecializedretailgoodsoftextiles,clothinganddailynecessitiesincreasedfrom70.302billionyuanin2007to
773.864billionyuanin2021,withanaveragecompoundannualgrowthrateof18.7%.Amongthem,thesalesoftextile,clothinganddailynecessitiesinchainretailenterpriseshaveincreasedrapidlyinrecentyears,reaching168.973billionyuanin2021.Thedevelopmentofe-commerceindustryalsoledtothetransformationandupgradingoftextile,clothinganddailynecessitiesindustries.AccordingtothestatisticsofChinaNationalTextileAndApparelCouncil,thetotalvolumeofe-commercetransactionsoftextileandclothinginChinain2020was7.29trillionyuan,accountingfor19.59%ofthetotalvolumeofnationale-commercetransactions.ThemarketsizeofChina'schildren'sclothingindustryfluctuatedupfrom2016to2021,withslightdeclinein2020and2022undertheinfluenceofpublichealthevents.Withreferencetotherapidrecoveryofthechildren'sclothingmarketin2021,itisexpectedtorecoverrapidlyin2023.Asof2022,China'schildren'sclothingmarketsizeisabout237.4billionyuan.Inthefuture,undertheinfluenceofthecontinuouspromotionofthethree-childpolicyandthegrowingattitudeof“exquisitechildraising”,thechildren'sclothingindustrystillhasalargedevelopmentpotential.Aspeople'sdemandforhealthandcomfortcontinuestorise,themarketofintimateapparel(inthebroadsenseofunderwear,meaningclothingwornclosetotheskinorunderouterwear,includingunderwear,warmclothing,loungewear,socks,etc.)isalsoevolvinginthedirectionofhighqualityandcomfort.Accordingtothecustomergroup,underwearcanbedividedintothreecategories:men'sunderwear,women'sunderwearandchildren'sunderwear,ofwhichwomen'sunderwearoccupiesadominantposition,accountingforabouthalfoftheoverallmarketshare.Accordingtothe“ChineseLingerieIndustryDevelopmentBlueBook”releasedbyCIC,themarketsizeofwomen'slingeriewillreach
217.14billionyuanandmen'slingeriewillreach84.91billionyuanby2026,andtheoverallmarketsizeofmen'sandwomen'slingeriewillincreaseataCAGRof5.2%from2020to2026.
TheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.II.MainBusinessoftheCompanyduringReportingPeriod
TheCompanyneedstocomplywiththedisclosurerequirementsofthe“MedicalDeviceBusiness”intheNo.4GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-InformationDisclosurebyGrowthEnterprises.WinnerMedicalisahealthenterprisedevelopingbothmedicalandconsumptionproductsunderitsbrandsof“Winner”and“Purcotton”.Specifically,theCompanyhasbeenadheringtothecorebusinessprincipleof“Qualitybeforeprofit,brandbeforespeed,socialvaluebeforecorporatevalue”.Throughcontinuousinnovationandexpansionofindustrialboundaries,theCompanyhasdevelopedfromasinglemanufacturerofmedicalconsumablesintoalargemedicalhealthenterprisecoveringwoundcare,infectionprevention,personalcare,homecare,maternalandchildcare,hometextileandclothingandotherfields.
WinnerMedicalconsumables
MedicalconsumablesHealthyconsumergoods
Healthy
consumergoodsWinnerMedicalLongtermMedicalWinnerMedical
WinnerMedicalLongtermMedicalWinnerMedicalPurcotton
Purcotton
Wetanddrycottontissues
WetanddrycottontissuesSanitarypads
| Sanitarypads | Sanitarypads,disposableperiodpantiesetc. |
Cottontissues,wettissuesetc.
Cottontissues,wettissuesetc.
Othernon-woven
products
| Othernon-wovenproducts | Facialmask,makeupcotton,cottondiapersetc. |
Babyclothingandsupplies
BabyclothingandsuppliesAdultclothing
| Adultclothing | Adult'sleisurewear,outingcostume,underwearetc. |
Baby'sleisurewear,bathtowelsand
quiltsetc.
Baby'sleisurewear,bathtowelsand
quiltsetc.Otherwovenproducts
OtherwovenproductsTraditionalwoundcareandwound
TraditionalwoundcareandwoundHigh-endwounddressingproducts
| High-endwounddressingproducts | Siliconedressings,alginatedressings,superabsorbentdressingsetc. |
Medicalcotton,gauze,bandages,etc.
Medicalcotton,gauze,bandages,etc.Consumablesintheoperatingroom
| Consumablesintheoperatingroom | Surgicalgloves,surgicalpacks,surgicalgowns,etc. |
Infectionprotection
InfectionprotectionHealth&personalcare
| Health&personalcare | Incontinencecare,oralandnasalproducts,hands-freedisinfectiongel,etc. | |
Masks,protectiveclothing,isolation
gowns,etc.
Masks,protectiveclothing,isolation
gowns,etc.OtherProducts
| OtherProducts | Injectionandpunctureproducts,testkits,etc. |
Bedding,bathroomaccessories,etc.
1.Medicalconsumablessection
WinnerMedicalisabenchmarkingenterpriseinthedomesticmedicalconsumablesindustry.Itsmainproductlinescoverwoundcare,infectionpreventionandhealth&personalcare.Thespecificproductsincludeadvancedwounddressingproducts,traditionalwoundcareanddressingproducts,consumableproductsinoperatingroom,infectionpreventionproductsandhealth&personalcareproducts.
TheCompanyisoneoftheearliestmedicalconsumablesenterprisesinChinatoestablishafullindustrialchaincoveringcottonprocurement,R&D,production,anddirectexport.TheCompany’sproductshavebeencertifiedbytheEUCEcertification,theUSFDAcertificationandtheJapaneseMinistryofHealth,LabourandWelfarecertification,andexportedtoEurope,America,Japanandothercountries.In2005,“Winner”brandenteredthedomestichospitalanddrugstoremarket.Withitsexcellentproductqualityandservice,WinnerMedicalgraduallyestablishedagoodbrandandreputationindomestichospitalsanddrugstores.Sincetheoutbreakofpublichealthincident,the“Winner”brandepidemicpreventionproductshaveenteredthehospitalandthecivilianmarket.Thankstoitspubliccommitmentnottoincreasepricesandthequalityofitsproducts,ithaswontheunanimouspraiseathomeandabroad,fromgovernmentunitsandthepublic,andthebrandreputationandpopularityhavebeengreatlyimproved.Intermsofproducts,WinnerMedicalfocusesonmarketdemand,isclosetoclinicalandterminal,isdrivenbyR&Dandinnovation,andconstantlyimprovesproductlayout.Itsbusinessscopeextendsfromsalesofsinglewoundcareproductssuchascottongauzetosalesofintegratedsolutionsofwoundcare,infectionprevention,andhealth&personalcareproducts.Disposableoperatingroomconsumablescanmoreeffectivelyreducenosocomialinfectionthanreusablemedicalproducts.Withmoreattentionofthestateandhospitalstonosocomialinfectionandresidents’attentiontopersonalhealthenvironment,disposableoperatingroomconsumablesaregraduallyacceptedbythedomesticmarket.WinnerMedical'smedicaldressingproductlinehasbeenexpandedfromtraditionaldressingproductsmainlyfocusingongauzeproductstoadvancedwounddressingproducts,suchassilicagelfoamdressing,hydrocolloiddressing,superabsorbentpad,negativepressuredrainageproducts,etc.,whicharemainlyappliedtochronicwoundhealingscenessuchasdiabetes,large-areaburnsandwounds.TheCompany’stechnicallevelinthefieldofadvancedwounddressingshasbeenintheforefrontoftheindustry,andisexpectedtobecomethecoreproductsforthedevelopmentofWinnerMedical.
2.HealthyConsumerGoodsSectionPurcottonisahealthylifebrandwith“Medicalbackground,Purcottonphilosophy,QualityinourDNA”asitscorecompetitiveness,whichstartswithpurecottonspunlacenon-wovenfabricandtakes“medicineclosetolife,Purcottoncareforhealth”asitsbrandproposition.Itsproductsincludepurecottontissue,sanitarypadswithpurecottonsurface,purecottonwettissuesandothernon-wovenconsumergoods,aswellasbabysupplies,babyclothing,babyproducts,adultclothingandothertextileconsumergoods.Purcottonadvocatesthelifeconceptof“comfort,health,environmentalprotection”,replacingchemicalfiberwithcottonandkeepingawayfromchemicalstimulation.Itprovidesoverallsolutionsfordifferentlifescenes,havingagooduserreputationandformedafullydifferentiatedbrandimageinthefieldofconsumergoodswithstrongbrandappeal.
Intermsofproducts,withexcellentqualitycontrolabilityandtechnologyresearchanddevelopmentability,theCompanycontinuestointroducemedicalgradequalityconsumergoods.CottonisthemainrawmaterialofcoreproductsofPurcotton,whichadoptsglobalhigh-qualitycottontocontrolproductqualityandsafetyfromthesource.Accordingtothehighstandardofmedicalconsumables,allkindsofpollutionsourcesarestrictlycontrolledintheproductionprocess.Disposableunderwear,newbornbabyclothesandotherclose-fittingclothingarepackagedwithmedicalgradesterilizationtofurtherensurethesafetyandenvironmentalprotectionoftheproducts.Purcottonproductscovermultipleconsumergroups,suchasmothersandinfants,childrenandadults,andspanmultipleproductlines,suchasadvancedpurecottontissues,femalecare,babycare,adultclothing,hometextileproducts,etc.
(II)MainProductsandPurposes
WiththeexpansionoftheCompany'sbusinessscope,theproductcategorieshavebecomemoreabundant.Therefore,theCompanyhasreadjustedthecaliberoftheproductcategoriesinthisreport.Theproductcategoriesofthemedicalconsumablessegmentaredividedintotraditionalwoundcareanddressing,advancedwounddressing,consumablesintheoperatingroom,infectionprevention,healthandpersonalcareandotherproducts;theproductcategoriesofthehealthyconsumerproductssegmentaredividedintowetanddrywipes,sanitarypads,othernon-wovenproducts,babyapparelandproducts,adultapparelandothertextileproducts.ThemaincategoriesandimagesofsomeproductsundertheCompany'smedicalconsumablessectionareasfollows:
| Traditionalwoundcareandwounddressingproducts | High-endwounddressingproducts |
Consumablesintheoperatingroom
Consumablesintheoperatingroom
MainPurpose:
Forabsorbingwoundexudate,dressingwounds,andsportsprotectionProduct:
Medicalcotton,gauze,bandages,etc.
| MainPurpose:Forabsorbingwoundexudate,dressingwounds,andsportsprotectionProduct:Medicalcotton,gauze,bandages,etc. | MainPurpose:Forcreatingamoisturebalanceatthewoundinterfacetooptimizeitsbenefitsforwoundhealing,reducethefrequencyofdressingreplacement,andreducesecondarydamageProduct:Siliconedressings,alginatedressings,superabsorbentdressingsetc. | MainPurpose:ForpreventinginfectionsintheoperatingroomProduct:Surgicalgloves,surgicalpacks,surgicalgowns,etc. |
Infectionprotection
| Infectionprotection | Health&personalcare | OtherProducts |
MainPurpose:
ForoccupationalprotectionofmedicalstaffandpatientisolationProduct:
Masks,protectiveclothing,isolationgowns,gloves,footstraps,hats,etc.
| MainPurpose:ForoccupationalprotectionofmedicalstaffandpatientisolationProduct:Masks,protectiveclothing,isolationgowns,gloves,footstraps,hats,etc. | MainPurpose:Forwoundcleaninganddisinfection,anddailyhealthcareProduct:Incontinencecare,oralandnasalproducts,hands-freedisinfectiongel,alcoholdisinfectiontablets,band-aids,etc | MainPurpose:ForhealthmanagementtomeettheirmedicalneedsProduct:Injectionandpunctureproducts,testkits,etc. |
Themaincategoriesandimagesofsomeproductsunderthecompany'shealthyconsumergoodssectionareasfollows:
| Wetanddrycottontissue | Sanitarypads | Othernon-wovenproducts |
Product:
Cottontissues,wettissuesetc.
| Product:Cottontissues,wettissuesetc. | Product:Sanitarypads,disposableperiodpantiesetc. | Product:Facialmask,makeupcotton,cottondiapers,disposableunderwear,etc. |
Babyclothingandsupplies
BabyclothingandsuppliesAdultclothing
| Adultclothing | Otherwovenproducts |
Product:
Baby'sleisurewear,outingcostume,underwear,bathtowels,handkerchiefsandquilts,etc.
| Product:Baby'sleisurewear,outingcostume,underwear,bathtowels,handkerchiefsandquilts,etc. | Product:Adult'sleisurewear,outingcostume,underwear,footwear,etc. | Product:Bedding,bathroomaccessories,etc. |
(III)MainOperatingModes
1.Procurementmode
TheCompanypromotesdigitalplatformmanagementandhasestablishedarobustprocurementmanagementsystem,procurementprocess,andriskcontrolplatform.Procurementisdrivenbyplanning,withprocurementplansandstrategiesformulatedbasedonannual,quarterly,andmonthlydemands.Differentmodesofprocurementareimplementedaccordingtothetypesofmaterialsrequired,includingstrategicprocurement,centralizedprocurement,anddecentralizedprocurement.Basedonpurchasingrequirements,technicalstandardsaredeterminedthroughacombinationofresearchanddevelopment,productanalysis,andqualityassessment.Procurementplansarethendevelopedwhichincludevendorselection,pricenegotiations,quotaallocation,arrivalschedulesandpaymentterms.Inthepursuitofasustainablesupplychainecosystem,collaborativesuppliersacrossproductdevelopment,manufacturing,procurementfulfillmentandotherdomainsremainsteadfastintheircommitmenttoachievinglowcarbonemissions,cost-effectiveness,transparencyandsocialresponsibility.
1)Responsibleprocurement:TheCompanymandatesthatthedemanddepartmentsubmitsprocurementrequestsbasedon
customerorders,salesplans,andproductionplans.Uponapprovaloftheserequestsandanalysisofmarketconditionsforrawmaterialsandauxiliarysupplies,thepurchasingdepartmentwilldevelopappropriatestrategiesforprocuringdifferentmaterials.Thesegrouppurchasingstrategiesmayincludestrategicprocurement,biddingprocurement,centralizedprocurementanddecentralizedprocurement.Forexample,adoptstrategicsourcingrulesforbulkrawmaterials(e.g.cotton,cottonyarn,etc.);implementrisklevelmanagementforoutsourcedmaterials,andprovidestandardtechnicaldocumentsandqualitytestingstandardsforeachproduct.Fromdemandidentification,sourcing,quotationcomparisonandselection,contractnegotiationandsigning,purchaseorderissuanceandapproval,goodsreceiptandwarehousingmanagementtoinvoicereconciliationandpaymentapplication,theentireprocurementprocessisvisualizedforeasysupervision.Allprocurementactivitiesmustbestrictlyimplementedinaccordancewiththeestablishedprocurementmanagementsystem.
2)Purchasingcontrolprocess:Theprincipleoftransparencyandqualitypriorityisadoptedtoensurethereliabilityof
productqualityandstabilityofsupply,whilealsomaintainingtheabilitytorespondtochangesintheexternalmarketandsupportongoingenterprisedevelopment.TheCompanyhasestablishedacompleteprocurementmanagementsystem,whichmainlyincludestheProcurementControlProcess,ProcurementPriceManagementProcess,NewSupplierSelectionandReviewControlProcess,SupplierPerformanceAppraisalManagementProcess,andtheCompanyalsohasmadeaQualifiedSupplierDirectory.
3)Supplyresourcesclassificationmanagement:accordingtotheCompany'sdevelopment,matchthecorresponding
supplierresources,cooperatewithsupplierstoseekwin-winresult,adoptdifferentsuppliercooperationstrategiesandreservecorrespondingsupplyresourcesfordifferentmaterials.Performclassificationanddynamicmanagementofexistingandnewsuppliers,prioritizecooperationwithsupplierswithhigherevaluationscores,andensurethatkeymaterialsareprovidedatleastbytwoqualifiedsuppliers,therebyreducingsupplyriskthroughcompetitionamongmultiplesuppliers.Wealsoregularlyassessmaterialsupplyrisksandtimelyadjustourprocurementstrategytosupplementourreservesuppliersandminimizesupplyrisks.
4)Qualificationreview:Fornewsuppliers,theCompanyhasmadestrictselectioncriteriaandsupplierdevelopmentand
processmanagementsystems,includingsupplierqualificationreview,andon-siteinspectiononsuppliers(suchasmedicalproductionlicense,medicalproductionregistrationcertificate,ISO13485,TUVorCEcertification);forsupplierswithpoororevenunqualifiedannualperformance,theCompanywilladdthemtothekeywatchlistoreliminatethem.
5)Sustainablesupplychain:TheCompanykeepsimprovingitsgreenandsustainabledevelopment,suchascooperation
withschoolsandhospitals.Wearealsoworkingwiththeupstreamanddownstreamofthesupplychaintofurtherpromotesustainabledevelopment.Forexample,wehavepromotedtheprojectofproductpackagede-plasticization;multiplecategoriesofPurcottonproductshaveobtainedcarbonfootprintcertification;weoptimizeproductprocesstominimizetheuseofenergy,andupgradetheproductionequipmenttoenableenergyrecoveryandreuse.
2.Productionmode
AlignedwiththeCompany'sbusinessstrategyobjectives,anddirectedbytheCompany-levelS&OPsalesandoperationplan,weformulatemediumandlong-termstrategicplansandshort-termproductionandprocurementplansaccordingtotheCompany'sdevelopmentandcustomerdemand.Wealsocoordinateallrelatedupstreamanddownstreamdepartmentstoensurethebalancefromfront-enddemandtosupplyanddelivery.Intheprocessoforderfulfillment,wematchcapacityaccordingtothecharacteristicsofdifferentdemandsandincombinationoftheactualsupplyofhuman,machine,material,methodandenvironment.Throughtheflexibledeploymentofdifferentproductionmodes(MTO(MaketoOrder),MTS(MaketoStore),ETO(DesigntoOrder)andATO(AssembletoOrder)),wecontinuouslyimproveourserviceleveltomeetcustomerdemandsandcreatevalueforcustomers.
1)IntheproductionmodeofMaketoOrderMTO,productsareproducedaccordingtothecustomer'soriginalproduct
design;procurementisperformedaccordingtotheBOMfortheacceptedorder.Therefore,inventorybasicallyremainszero.ForOEMcustomerorders,asthemarketconstantlyreducesdeliverycycle,itiscommonnowtocombineMTO&MTSproductionmodes.
2)IntheproductionmodeofMaketoStockMTS,productsarenotcustomizedforspecificcustomers,andareusuallydeliveredtodifferentcustomers;productionplansareformulatedaccordingtomarketdemandandexistinginventory.Safeinventoryisdeterminedforsuchproductsaccordingtotheproductioncycleandthefrequencyofdemandtoensurethatproductsareavailablewhenthecustomerplacesorder.
3)InthemodeofEngineertoOrder,specificdesignrequirementsfromasinglecustomercanbemet,usuallyforsmall
productionlots;intheproductionprocess,thevaluemainlyliesinproductandpackagingdesignwork.Supportforcustomdesignisanimportantpartofthisproductionmode.Inventorybasicallyremainszero.
4)IntheAssembletoOrdermode,thecomponentsrequiredfortheproductionoffinishedproductsarestockedinadvance.Whenthecustomerplacesorder,productscanbeassembledquicklytomeetflexibledeliverydemands.Commonmaterialsarestockedinadvancetomaintainbalancebetweenrapiddeliveryandinventory.
3.SalesmodeTheCompanysellsproductsthroughmultiplechannels.Themainsaleschannelsareshowninthefollowingfigure:
WinnerMedicalconsumabl
es
Medicalconsumabl
es
Healthyconsumergoods
HealthyconsumergoodsOfflinechannels
OfflinechannelsRealstores
Realstores
Third-partyB2Cplatforms,suchasTmall,JD.comandAmazon
Third-partyB2Cplatforms,suchasTmall,JD.comandAmazon
Onlinechannels
OnlinechannelsOnlinechannels
OnlinechannelsOfflinechannels
Offlinechannels
E-commerceplatforms
E-commerceplatforms
Overseassales
OverseassalesDomesticsales
DomesticsalesHospitals
HospitalsPharmacy/conveniencestores
Pharmacy/conveniencestoresGovernmentandenterprise
platform
Governmentandenterprise
platformPrivatebrand
PrivatebrandOEM/ODMsales
OEM/ODMsales
Tmall,JD.comandothertraditionale-
commerceplatforms
Tmall,JD.comandothertraditionale-
commerceplatformsTikTok,Kuaishouandotherintereste-
commerceplatforms
TikTok,Kuaishouandotherintereste-
commerceplatformsOfficialshoppingmallandWechat
miniprogramsofPurcotton
OfficialshoppingmallandWechat
miniprogramsofPurcottonDirectlyoperatedandfranchisedchain
stores
Directlyoperatedandfranchisedchain
storesSupermarkets,conveniencestoresand
beautystores
4.MarketingmodeTheCompanyisdevelopingitsproductsundertheWinnerMedicalandPurcottoninacoordinatedway.With30yearsofexperienceintheproductionofmedicalsupplies,WinnerisaleadingmedicalconsumablesbrandintheChinesemarketandabrandwithaglobalvision.With“caringforhealthandlife,makingabetterworld”asitsvisionandindustry-leadingproductqualityasthecornerstoneofitsbrandvalue,theproductmarketingandpromotionforthebrandrelymoreonitsbrandreputation.Withpurecottonproductsasitslabel,Purcottonadoptsunique,differentiatedstrategiestobuilditsbrand.Byintegratingmultiplepromotionchannelssuchasdirectly-operatedstores,brandroadshows,celebrityendorsements,eventsponsorship,newmedia,andadvertising,Purcottonkeepsconveyingtoconsumersitspropositionof“medicineclosetolife,Purcottoncareforhealth”anditsvisionof“changingtheworldwithpurecotton”,whichhelpsdeepenthemeaningofPurcottonbrandandincreaseitsbrandawarenessandloyalty.(IV)MainDrivingFactorsofPerformance
1.Medicalconsumablesindustryandconsumergoodsindustrywillkeepgrowingrapidly
Astheglobaldemandforhealthcareofagingpopulationincreases,andmedicalandhealthcareimprove,theglobalmedicalconsumablesmarketisshowingasteadygrowthtrend.Theuserateofdisposablemedicalconsumablesanddisposablesurgicalpackswillgethigher;ontheotherhand,astheChinesegovernmentattachesimportancetothemedicalconsumablesindustry,thesupervisionovertheindustryarecontinuouslystrengthenedwhilethereservesofmedicalconsumablesareincreasing.Therefore,companiesthatdonotcomplywithlawsandregulationswillsurelybeeliminated.Inaddition,China'smedicaldressingsarechangingfromtraditionaldressingstoadvancedwounddressings,anditisexpectedtoreplaceimporteddressingsbydomesticdressingsstepbystep.Aftertheoccurrenceofpublichealthincident,thegovernment,healthcareprofessionals,andconsumerspaymoreattentiontohealthprotectionandquality,andthedemandformaskshasincreasedsignificantlycomparedtothepre-publichealthincident.ThemedicalconsumablesmarketinChinaisgrowingrapidly,creatingagoodexternalenvironmentforenterprisedevelopment.OnOctober25,2021,theCPCCentralCommitteeandtheStateCouncilofficiallyannouncedthe“Opinionsonthecomplete,accurateandcomprehensiveimplementationofthenewdevelopmentconcepttoachievecarbonpeakandcarbonneutrality”.ItispointedoutthatstrengtheningChina'sgreenandlow-carbontechnologicalinnovationandcontinuouslyexpandinggreenandlow-carbonindustrieswillacceleratetheformationofnewdriversandsustainablegrowthpolesofgreeneconomy.WewillsignificantlyimprovethequalityandefficiencyofeconomicandsocialdevelopmentandprovidestrongimpetustobuildChinaintoagreatmodernsocialistcountryinallrespects.OnDecember4,2021,theNationalDevelopmentandReformCommission,togetherwithninedepartmentsincludingtheMinistryofEcologyandEnvironment,jointlyissuedthe“14thFive-YearPlanforPromotingCleanProduction”,withthecoreobjectivesofbasicallyestablishingthesystemofcleanproduction,significantlyimprovingtheoveralllevelofcleanproduction,andgrowingthecleanproductionindustry.Itisofpositivesignificancetohelpachievethegoalofcarbonpeak,carbonneutrality,andpromotegreendevelopment.Inrecentyears,thetotalretailsalesofconsumergoodsinChinahasbeenrisingsteadily.Aspeoplegrowmoreconfidentonthenationalculture,thedomesticgoodshaveinjectednewvitalityintothenationaleconomy,becominganimportantdrivingforcetopromoteconsumptionandexpanddomesticdemand.Atthesametime,consumersareincreasinglyconcernedabouttheenvironmentalperformanceandsustainabilityofproducts,andtheriseofenvironmentalprotectionandlowcarbonawarenessisalsodrivingthetransformationandupgradingoftheconsumergoodsindustry.
2.High-qualityproductsandprecisebrandpositioningenhancebrandvalue
TheCompanyisoneoftheearliestmedicalconsumablesenterprisesinChinatoestablishafullindustrialchaincoveringcottonprocurement,R&D,production,anddirectexport.TheCompanyisoneoftheearlycompaniesthatestablishedamedical-gradequalitymanagementsystemintheindustry,andhaspassedtheISO13485MedicalDevicesQualityManagementSystemCertification.ItsproductqualitycomplieswiththeEuropean,American,Japanese,andChinesestandards.WinnerMedicalenjoysahighbrandreputationandrecognition.InMay2021,WinnerMedicalwasselectedbytheFederationofShenzhenIndustriesasthe“BenchmarkingEnterpriseinChina'sMedicalConsumablesSector”andatthesametimerecognizedasan“InternationalRenownedBrand”bytheUnitedNationsIndustrialDevelopmentOrganization.InDecember2021,“purecottonspunlacenon-wovenfabricsanditsproducts”ofWinnerMedicalwasawardedasthenationalsinglechampionofmanufacturingindustry.InApril2022,WinnerMedicalwasawardedthehonorof“NationalPioneerWorker”bytheAll-ChinaFederationofTradeUnions.WinnerMedicalhasexpandeditsbusinessfromthemedicalfieldtotheconsumergoodsfield,whichhasalsoincreasedthebrandvalueofitsconsumerproducts.Purcottoniscommittedtofulfillingconsumers’demandforhigh-qualityproductswhichare“comfortable,healthy,andenvironmentallyfriendly”.Constantlywinningrecognitionfromconsumerssinceitslaunchin2009,PurcottonhasrapidlygrownintoatopbrandofmaternalandchildproductsonTmall,andhasgainedgreatermarketsharesinthefieldofmaternalandchildconsumerproducts.InOctober2019,Purcottonwonthereputationof“70Brandofthe70thAnniversaryofthe
FoundingofNewChina”sponsoredbyCCTV.InJanuary2021,Purcottonwashonoredasoneofthe“ShenzhenTopBrands”byFederationofShenzhenIndustries.InApril2021,Purcottonwasincludedintothelistofthesecond“ShenzhenTop100Brands”announcedbyShenzhenQualityCityPromotionAssociation.Inconclusion,withhighbrandvalue,theWinnerMedicalandPurcottonbrandswillhelptheCompanyenhancecustomerloyalty,stabilizeproductprices,andexpanditsmarketshareinthecompetitivemarket,therebyensuringitssustainableandstableprofitability.TheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.
III.AnalysisofCoreCompetitiveness
1.AdvantagesofBusinessPhilosophyandCorporateCulture
Withofferingqualityproductsasitsmission,theWinnerMedicalbrandaimstoleadinthemedicaldressingindustry,togrowfromasmallChineseenterpriseofferinglower-priceproductstoalargeinternationalenterpriseofferinghigh-qualityproductsrecognizedbydevelopedcountries,bringingChinesemedicaldressingstotheinternationalstage.With“caringforhealthandlife,makingabetterworld”asitsvision,thebrandkeepsfocusingonproductqualityandinnovations,andmakingitswayintothemedicalconsumablesandadvancedmedicaldressingmarket.Throughthe“internalgrowth+externalgrowth”approach,theCompanyiscommittedtotakingtheleadinthefieldofmedicalconsumablesandprovidingone-stopmedicalconsumablessolutions.Withitscorporatevisionof“changingtheworldwithpurecotton”,Purcottonadvocatesalifestylewithpurecottonbyapplying“comfortable,healthy,andenvironmentallyfriendly”inallaspectsofdailylife,anddeliverthebrandconceptof“reassurance,happinessandsustainability”toconsumers.Stickingtothe“cottonfiberonly”principleinitsoperation,Purcottonaimstodeveloprecyclableandrenewableresources,graduallyreplacechemicalfiberswithnaturalfibers,andgivefullplaytotheusevalueandenvironmentalprotectionvalueofcottonfibers,followingthepathoflowcarbon,environmentalfriendlyandsustainabledevelopment.ThevisionsandbusinessphilosophiesregardingtheCompany'stwobrandsarefocusedonhumanhealth,environmentalprotection,andimprovingthequalityoflife,whichareinlinewithhumans'sustainabledevelopmentstrategy.TheCompanywillalwaysupholditscoreoperatingprincipleof“prioritizingqualityoverprofit,brandoverspeed,andsocialvalueovercorporatevalue”,andstickbyitscorevaluesof“hardwork,self-criticism,explorationandinnovation,andsustainabledevelopment”.TheCompanypromoteshealthysportssuchasrunning,mountainclimbing,andballgames.TheCompanyisweakeningthepowerfromtitlestoreducebureaucracy,andcreatingopenworkplacestoensureefficientcross-departmentcommunication.Duringthepublichealthincident,theCompanyrespondedquicklyandmadeeveryefforttoensuretheproductionofprotectiveproducts.Itcarriedoutaseriesofactivitiestoimprovetherapidresponsecapabilitytomarketdemandintermsofdecision-makingmanagement,processintegration,productandequipmentinnovation,andindustrychainintegration.TheCompanyprovidedalargenumberofepidemicpreventionandcontrolsuppliestohospitals,epidemicpreventionagencies,pharmaciesandthepublic.
2.AdvantagesofR&DandInnovation
TheCompanyindependentlydevelopedthepurecottonspunlacenon-woventechnologyin2005,andhasbuiltacompletetechnologyclusterbasedonthetechnology,obtainingpatentlicensesinmorethan30countriesandregionsincludingtheUnitedStates,Europe,andJapan.ThesilicagelfoamdressingandfoamdressingssuccessfullydevelopedandlaunchedbytheCompanyhavebeenawardedwithChina'sregistrationcertificateforClassIIandClassIIImedicaldevicesrespectively.Thiskindofadvancedwetwounddressingisspeciallydesignedforthevulnerableskinoftheelderlywithchronicdiseases.Itmayfacilitatetheobservationofwoundhealingandreductionofpainwithdressingchange,andalsoprovidespatientswithacost-effectivesolutionforchronicwoundtreatment,effectivelysolvingtheclinicalpainpointssuchastheadhesionoftraditionalgauzedressingstowoundsandfrequentdressingchanges.Theinnovativeapplicationofpurecottonspunlacenon-wovenfabricsininfectionpreventionproducts,suchasmasksprotectiveclothing,surgicalgowns,andisolationgowns,hasnotonlyalleviatedtheshortageofrawmaterialsduringthepublichealthincidentbutalsoimprovedthebreathabilityandcomfortofanti-pandemicproducts,whichissafeandenvironmentallyfriendly.Inthefieldofconsumerproducts,theCompanyhasdevelopedpurecottontissues,purecottonwettissues,sanitarypadswithpurecottonsurface,aswellasdisposalcleansingtowels,disposableunderwearandotherproducts.Ithasbeeninvitedtoparticipateinthedevelopmentofanumberofnationalstandardsandindustrystandards,draftinganddevelopingperformancerequirementsforpurecottonnon-wovensurgicaldressings,andtechnicalspecificationsforcontacttraumadressingsandchildren'smasks.Asthefirstandmajordrafter,Purcotton,awholly-ownedsubsidiaryoftheCompany,ledthedevelopmentofnationalstandardsforcottontissues(GB/T40276-2021),whichrequiresthatthefibercompositionandcontentofcottontissuesshallbeidentified,andthe
fibercontenttoleranceshallcomplywiththeprovisionsofGB/T29862(implementedonDecember1,2021).InDecember2021,“purecottonspunlacenon-wovenfabricsanditsproducts”oftheCompanywasawardedasthenationalsinglechampionofmanufacturingindustry.Sinceitsestablishment,theCompanyhasbeenattachinggreatimportancetoscientificandtechnologicalinnovationandcooperation.Ithascarriedoutindustry–university–research(IUR)projectswithmanyuniversitiesandresearchinstitutes,includingHongKongPolytechnicUniversity,HongKongResearchInstituteofTextilesandApparel,WuhanTextileUniversity,andSoochowUniversity.TheCompanyworkedwithSoochowUniversitytocarryout“temperaturescaleofgauzequiltandsleepcomfort”project,andpartneredwithWuhanTextileUniversitytocarryout“repolymergauze”forspinningtechnology;OnDecember27,2021,theCompanyandWuhanTextileUniversityjointlyestablishedtheInnovationResearchInstituteofWinnerMedical&WuhanTextileUniversitytoacceleratethetransformationofscientificandtechnologicalachievements.XuWeilin,academicianoftheChineseAcademyofEngineering,deputypartysecretaryandprincipalofWuhanTextileUniversity,wasappointedasthepresidentoftheResearchInstitute.Atthesametime,theCompanyandtheShenzhenInstituteofAdvancedTechnologyoftheChineseAcademyofScienceshavejointlyestablishedthe“JointLabforWoundDressingInnovativeTechnologyResearch”toconductcutting-edgetechnologyresearchandnewproductdevelopmentofwounddressings.Atpresent,theCompanyhastwoprovincialR&Dplatforms,the“GuangdongFunctionalCottonEngineeringTechnologyResearchCenter”andthe“GuangdongWoundRepairMaterialEngineeringTechnologyResearchCenter”thatarededicatedtotheresearchoffunctionalcottonandwoundrepairmaterials.InJuly2022,theCompanysignedacontractwiththeNationalInnovationCenterForAdvancedMedicalDevicesinShenzhen,Chinatobuildajointresearchcenter,furtherstrengtheningthecooperationbetweenthetwosidesinthedevelopmentofinnovativemedicaldevices,keycoretechnologyresearch,andclinicalapplicationtransformation.InFebruary2023,togetherwithSoochowUniversity,theCompanyestablishedHealthSleepProductIndustryTechnologyInnovationCenterofShenzhenPurcottonTechnologyCo.,Ltd.affiliatedtotheCollegeofTextileandClothingEngineering,withLuYehuasthedirectorofthecenter.AsofDecember31,2022,theCompanyhasobtained76patentsforinventions,662patentsforutilitymodels,and349designpatentsinChina;andobtained54patentsforinventionsand8patentsforutilitymodelsoverseas.TheCompanywasregardedasa“LeadingEnterpriseinIndependentInnovation”bytheShenzhenMunicipalPeople'sGovernment,anda“ShenzhenEnterprisewithIntellectualPropertyAdvantages”bytheShenzhenAdministrationforMarketRegulation.
3.Advantagesofqualitycontrol
Withahistoryofmorethan30yearssinceitsestablishment,WinnerMedicalhasachievedsustainabledevelopmentandmaintainedaleadingpositionintheindustry.ItisinseparablefromtheCompany'sthreecoreprinciplesof“qualityoverprofit,brandoverspeed,socialvalueovercorporatevalue”.Inthiscontext,thequalitypolicyof“Rigorouswork,strictcompliancewithlawsandregulations,andcontinuouslyimprovetowinthefulltrustofcustomers”wasformedandhasbeenimplementedtodate.Basedonthisguideline,WinnerMedicalGrouphasadoptedENISO13485:2016(ISO13485:2016),China'sMedicalDeviceManufacturingQualityManagementPractice,theUnitedStates21CFRPart820,andtheEuropeanUnionMDD(DIRECTIVE93/42/EEC),EUMDR(REGULATION(EU)2017/745)andEUPPE(REGULATION(EU)2016/425)ascornerstones,formingaqualitymanagementsystemmodelbasedonprocessmanagement.Underthismodel,WinnerMedicalfocusesontheresearchofproductqualitystandardsandregulatoryrequirementsofdifferentcountries/regions,andactivelypassesthecorrespondingproductregistration/certificationprocedures.IthasobtainedproductaccessqualificationsinChina,EU,USA,Japan,UK,Switzerland,Russia,Australia,Malaysia,Thailand,SaudiArabiaandothercountries/regions,providingdomesticandforeigncustomerswithhighqualityproductsandgoodafter-salesservice.Atthesametime,WinnerMedicalhasbeencommittedtobuildingprofessional,reliableandcomprehensiveproductqualitytestingcapabilities.TheCompany'sR&DcenterlaboratoryandJingmenWinnerLaboratoryhavebeenaccreditedbytheChinaNationalAccreditationServiceforConformityAssessment(CNAS).Withprofessionalandreliableproducttestingcapabilities,itnotonlyprovidesguaranteeforproductqualitycontrol,butalsoservesasasourceofdataforcontinuousproductimprovement.Toensurethesafetyofrawmaterialsforitsproducts,Purcottonuseshigh-qualitycottonfromaroundtheworldtoproduceitscoreproducts,suchasitspurecottontissue,sanitarypadswithpurecottonsurface,andpurecottonwettissues.Alltheworkshopsaremanagedaccordingtothemanagementrequirementsfortheworkshopsofmedicaldressings,whichcanhelpstrictlycontrolbacterialcontaminationandpollutionsources.Withitsstrictquantitymanagementcontrolsystem,Purcottonisabletoprovidecustomerswithhigh-qualityconsumergoodsthataresafeandenvironmentallyfriendly.Adheringtotheconceptof“medicineclosetolife,Purcottoncareforhealth”,Purcottonnotonlyappliesqualitynaturalcottonbutalsoattachesimportancetotheenvironmentalfriendlyweavingandfinishingprocess.Toensurethatitsproductsareecologicallysafe,nofluorescentbrightenersareaddedtoitsproducts.SomeofitsproductsareOEKO-TEXStandard100certified.Somenon-wovenproductshavepassedthetestingperformedinaccordancewiththeEUAP(2002)1andEC1935/2004EUFoodContactMaterialsRegulation.
4.Productadvantages
(1)MedicalconsumablesTheCompany'sproductcategoriesincludeadvancedwounddressingproducts,traditionalwoundcareanddressingproducts,consumableproductsinoperatingroom,infectionprotectionproductsandhealth&personalcareproducts,coveringapplicationscenarioslikeclinicalandmedicalinstitutionsandfamilies,whichcanbettermeetclients'needsofone-stopprocurement.Inadditiontotraditionalwoundcareproductsanddressingproducts,theCompanyhasalsodevelopedrepresentativeadvancedwetdressingslikesiliconefoamdressings,hydrocolloiddressings,superabsorbentpadsandscarrepairsheetforchronicwoundsthataredifficulttoheal,whichhasfurtherenrichitsproducts.Fortheclinicalusescenarios,theCompanyiscommittedtochangingfromsellingsingleproductstoprovidingcustomerswithintegratedsolutions.Itsinfectionpreventionproductsincludedozensofsurgicalpacksforvarioussections,suchasheartandbrain,abdominalcavity,urology,reproduction,facialfeatures,andlimbs.Intermsofprotectiveproducts,theCompanyhassuccessfullydevelopedandmarketedbiodegradablemasks,N95medicalprotectivemasksofhighpermeabilityandotherproducts,providingsolutionsfortheenvironmentalattributesofmaskproductsandgreatlyenhancingthecomfortofmaskproducts.Inthefieldofhomecare,theCompanyprovidesprofessionalproductsforclinicalusesuchashyaluronicacidmasks,salinecleaningpads,hydrocolloidband-aidsandmedicalsheetmaskstoconsumersthroughportable,sterilizedanddiversifiedpackages.Theseprofessionalhealthcareproductsandservicesindailyhomecarehelpcustomersreducethefrequencyofgoingtothehospital.
(2)HealthyconsumergoodsTheCompany'shealthyconsumergoodsconsistofnon-wovenconsumergoodsandappareltextileconsumergoods.Thenon-wovenconsumergoodsincludecottontissues,sanitarypads,andwetwipes;theappareltextileconsumergoodsincludebabysupplies,adultclothing,andbedding.Cottonfiberhastenprominentadvantages,includingnatural,safe,comfortable,naturallydegradable,highoutputratio,drought-resistant,saltandalkali-resistant,environmentallyfriendly,time-honored,aswellasgreateconomicandsocialvalue.TheCompanytakestheleadinproposingtheinnovativeconceptofreplacingchemicalfiberswithcottonandgettingridofchemicalstimulation,andprovidesconsumerswithhealthy,comfortableandenvironmentallyfriendlyconsumergoods.Anditscottontissuesarepioneeringtissuesintheindustry,whichcanpartiallyreplacehouseholdpaper.Purecottontissuesaremadeofdegradablecottonafterphysicalprocessing.Therearelesschemicalstimulationandthetissuescanbereused.Thetissuesaremorecomfortable,safe,andenvironmentallyfriendly,soconsumeracceptanceofthetissueshasbeensignificantlyimproved,andtherearemanyimitatorsinthemarket.Forpurecottonwettissuesandsanitarypadswithpurecottonsurface,cottonmaterialsareinnovativelyusedinthepartsoftheseproductsthatcontacthumanskintoreplacetraditionalchemicalfiberandeffectivelyreducechemicalirritation,sotheyarepopularinthemarketsofbabyandfemaleconsumers.Duetotheexcellentbreathabilityandsoftnessofgauzefabrics,theCompany'sclothingandtextileconsumerproductssuchasgauzechildren'schildren'sclothing,householdclothing,beddingandbathtowelsaregettingmorepopular.
5.Brandadvantages
(1)BrandadvantagesinthefieldofmedicalconsumablesAsoneofthemarketleadersinthefieldofmedicalconsumables,theCompanyattachesgreatimportancetoproductqualityandservice,andholdsexhibitionsworldwidetolaunchesthe“WinnerMedicalAcademy”,aimingtoinviteexpertstoeducate,organizeandparticipateinacademicforumsandpublicwelfareactivities,thuspromotingthebrand,allowing“WinnerMedical”toenjoyahighreputationintheindustry,andenablingtheproductstobewidelyrecognizedbycustomersathomeandabroad.TheCompany'smedicalconsumablesaremainlysoldtodevelopedcountriesandregionssuchasEurope,JapanandtheUnitedStates,andtheproductsunderitsbrandWinneraremainlysoldtodevelopingcountriesandregionssuchasAsia,Africa,andLatinAmerica.TheCompanyareprovidingservicesforworld-renownedmedicalsuppliescompaniessuchasM?lnlycke,Lohmann,andPAULHARTMANN.AccordingtostatisticsfromtheChinaChamberofCommerceforImportandExportofMedicinesandHealthProducts(CCCMHPIE),theCompanyhasbeenrankedamongthetopthreeexportersofChinesemedicaldressingsformanyconsecutiveyears.Theproductsof“WinnerMedical”brandshavecoveredallpublicandmostprivatehospitalsinHongKong.InMay2021,WinnerMedicalwasselectedbytheFederationofShenzhenIndustriesasthe“BenchmarkingEnterpriseinChina'sMedicalConsumablesSector”andatthesametimerecognizedasan“InternationalRenownedBrand”bytheUnitedNationsIndustrialDevelopmentOrganization.
(2)BrandadvantagesinthefieldofhealthyconsumergoodsStickingtothe“cottonfiberonly”principleinitsoperations,Purcottoninsistsonoffering“comfortable,healthy,andenvironmentallyfriendly”cottonproductswithhighqualitytoconsumerstoconstantlybringthemhappinessandqualityproducts,whichmakesPurcottonproductspopularamongconsumers.Adheringtotheconceptof“medicineclosetolife,Purcottoncareforhealth”,Purcottonadvocatestheuseofcotton,toreduceenvironmentalpollutionandtoenableconsumerstoreturntoanaturalandsustainablelifestylewithpurecotton.ThepurecottontissuesdevelopedbyPurcottonisapioneeringcategory.Purcottoniscreatingnewcategoriesandlifestylesbyapplyingcottonmaterialsinitscoreproducts,includingpurecottonwettissues,sanitarypadswithpurecottonsurface,BBNice,aswellasgauzetextileproductsandclothing.Ithasshapedanbrandimageof“newChineseproducts”withcottonasthecorematerialandexcellentproductquality.Itsbrandawarenessisincreasinganditsreputationisimprovingyearbyyear,formingeffectivecompetitionbarriersandbringingpowerfuladdedvalueofproductsforPurcotton.
6.Advantagesofsaleschannels
(1)AdvantagesofonlinechannelsIntermsofonlinechannels,theCompany's“WinnerMedical”and“Purcotton”havecompletedthedeploymentofmainstreamthird-partye-commerceplatforms,includingTmall,Jd.com,PinduoduoandAmazon.Withthehugeusertrafficgathered,itssaleshascoveredmostonlineshoppingconsumergroups,andthesalesdataindicatedthatthesalesofitsproductsrankamongthetopintherelevantproductcategoriesinmajore-commerceplatforms.Withtheattributesof“sales+social”,Purcotton'sofficialwebsiteandWeChatminiprogramsareimportantplatformsforitsproductdisplay,userinteraction,andbrandpromotion.Atthesametime,PurcottonisalsocooperatingwithnewsocialretailplatformssuchasDouyinandKuaishou,whichhelpsitopenupnewsalesgrowthchannels.
(2)AdvantagesofofflinechannelsInthemedicalconsumablessection,theCompanyhascoveredmorethan5,000medicalinstitutionsand150,000retailpharmaciesinChina;foreignmedicalbusinesscustomersanddistributorshavecoveredmorethanahundredofcountriesandregionssuchasEurope,JapanandtheUnitedStates.Inthehealthyconsumergoodssection,asofDecember31,2022,Purcottonhasopened340offlinestores(including26franchisees)inmorethan70mid-andadvancedshoppingmallsinShenzhen,Shanghai,Beijing,GuangzhouandotherkeycitiesinChina.TheCompanyintegratesitsbrandconceptintoitsstoredesign.Ithireswell-knowndesignersathomeandabroadtoupgradeitsstoreimageandtoenhanceitsconsumerexperiencewithanexhibition-styleproductdisplaybalancingbothaestheticsandrichnessofproducts.Italsoaddsanexperienceareatohighlightproductdisplayandconsumerexperience,whichhashelpedincreasetheCompany'ssalesrevenueandfurtherincreaseitsbrandawareness.Asforofflineterminalslikechainstoresandsupermarkets,basedonPurcotton'spositioningofhigh-qualityconsumergoods,theCompanymainlydeploysPurcottonproductsinwell-knownsupermarketchain,advancedboutiquesupermarkets,localleadingsupermarketsandchainconvenientstores.Meanwhile,theCompanyalsohassetupdedicatedsalesteamstocoverthebulkpurchaseorcustomizedpurchaseneedsofcorporateclients.TheCompany'scoreproducts,suchasPurcotton'scottontissueandNicePrincess,havesuccessfullyenteredsupermarketchains,conveniencestorechainsandofflinematernal&infantstoresandcommunities,includingabout11,000outletsofChinaResourcesVanguard,Rt-MartOle'Supermarket,Sam'sClubs,Wal-Mart,Rainbowandothermainstreamsupermarketchains,over20,000outletsof7-11,Rosen,ConvenienceBee,Today,EveryDay,HongQiandotherconveniencestorechains,aswellasover7,500beautystoresandofflinematernal&infantstoressuchasWatsons,KidswantandLoveBabyIsland.
(3)AdvantagesofintegrationbetweenonlineandofflinechannelsTheomnichannelretailmodelisanewlyemergingretailformthatprovidesconsumerswithaconsistentshoppingexperiencebyintegratingphysicalstores,third-partye-commerceplatforms,andmobilee-commercechannels.Insuchform,theconvenienceofonlinechannelsandtheconsumerexperienceofofflinechannelscancomplementeachother.Havingadeepinsightintothedevelopmenttrendofintegratingonlineandofflinechannels,theCompanythoroughlyoptimizedandintegratedvariouschannelstointegratetrafficandsalesofofflinestoresandonlineWechatminiprograms,therebyfurtherimprovingitsoperatingefficiencyandperformance.Onlinechannelscanmeetofflineconsumerssubsequentconsumptionneedswhileofflinechannelscanprovideonlineconsumersfurtherproductinformationandserviceexperience.Flowsoftrafficscanbedirectedbetweenthetwokindsofchannels,soonlineandofflinetrafficcanbeeffectivelyobtained.AsofDecember31,2022,thenumberofPurcottonusershasexceeded43.35million,includingover21millionregisteredmembersofitsprivateplatforms(9millionstoreregisteredmembers,andover12millionregisteredmembersofitsofficialwebsiteandWeChatminiprograms).
7.AdvantagesoffullindustrialchainAdheringtothebusinessphilosophyof“Qualitybeforeprofit”,theCompanyhasbeenconstantlyimprovingitsproductquality,costanddeliverymanagementandcontrol,andhasbuiltafullindustrialchainwithadvantagesfromprocurement,production,sterilization,warehousing,todelivery.TheCompanyhaselevenwholly-ownedproductionsubsidiaries,coveringatotalareaofmorethan1millionsquaremeters,including105,000squaremetersofcleanworkshops,supplyinglargequantitiesofhigh-qualitymedicalsuppliesanddailynecessitiesaroundtheworldeachyear.Establishedin2005withanareaof550,000squaremeters,WinnerMedical(Huanggang)isthemainproductionsiteofpurecottonspunlacenon-wovenfabrics,cottontissues,sanitarypads,andmasks;withanareaof67,000squaremeters,WinnerMedical(Jingmen)isthemainproductionsiteofgauzeclothing,degreasedmedicalbleachedgauze,anddyedmedicalgauze;withanareaof93,000squaremeters,WinnerMedical(Jiayu)hasfourproductcategorieswithpurecottonasbasicmaterials,i.e.thecleaning,disinfection,beauty,andcarecategories,andtwoproductcollections:medicalanddailyuseproducts;establishedin2001withanareaof140,000squaremeters,WinnerMedical(Chongyang)istheCompany'smainforceofproducingitsdisposablesurgicalkitsandotherinfectioncontrolproductsinoperatingroom,protectiveclothingandotherepidemicpreventionproducts,allkindsofcottonballsandcottonpads;establishedin2017withatotalareaofabout467,000squaremetersofitsphaseIandphasesIIsites,WinnerMedical(Wuhan)hasbroughtinelectronbeamsterilizationandinternationalmoderncottonspunlaceproductionline;establishedin2000withatotalareaofabout150,000squaremeters,WinnerMedical(Tianmen)produceproductssuchaspurecottonspunlacenon-wovenfabrics,purecottontissues,medicaldressing,medicalprotectionseriesproducts,beingtheproductionbaseofpurecottontissuesandmedicalgauzeinChinafortrade;establishedin1999,WinnerMedical(Yichang)has137advancedair-jetlooms,beingthemainproductionbaseforitsgreycloth.InJanuary2022,theCompanyacquiredanindustriallandofnearly15,000squaremeterslocatedinGuanlanStreet,LonghuaDistrict.Inthefuture,thelandwillbebuiltintoaindustrialbaseformedicalbiologicalandinfectioncontrolprotectionintheGuangdong-HongKong-MacaoGreaterBayArea,whichwillbeusedforscientificresearchinnovationandindustrialproductionofmedicalbiology,advancedmedicaldressingsandmedicalinfectioncontrolprotectionproducts.In2022,theCompanyacquiredthreesistercompanies,i.e.LongtermMedical,WinnerGuilin,andWinnerMedical(Hunan),tosolidifythekeyfoundationforbuildingthecapabilityofone-stopmedicalconsumablessolution.Throughcontinuousconstructionandimprovement,thedailymanagementsystemwithinthefactorywasoptimizedthroughleanmanagement,standardization,automation,digitalizationandgreening.Infuture,theCompanyisalsogoingtoexploreandbuildsmartfactories.Itwillrealize“unmannedproduction,process-basedmanagement,andprocessdigitalization”stepbystep.
IV.Mainbusinessanalysis
1.Overview(I)Businessanalysis
In2022,thedomesticandinternationaleconomicsituationiscomplexandvolatileundertheinfluenceofonce-in-a-centuryglobalchangesandthepublichealthevents.Facingthecomplexandsevereexternalenvironment,WinnerMedical,asamedicalandhealthenterprisethatrealizesthecoordinateddevelopmentofmedicalandconsumptionsectors,alwaysmaintainstrategicfocus.Rootedinthetwomajorsectorsofmedicalsuppliesandhealthyconsumergoods,andguidedbythethreecorebusinessprinciplesof“Qualityoverprofit,brandoverspeed,andsocialvalueovercorporatevalue”,theCompanyhasrespondedpositivelyandrisentothechallenge.In2022,weachieveanoperatingincomeof11.35billionyuan,anincreaseof41.2%year-on-year;theproportionofrevenuecontributedbyprivatebrandsincreasesto49.1%oftheoverallrevenue;theannualnetprofitattributabletoshareholdersoflistedcompaniesachieves1.65billionyuan,andthenetprofitafterdeductionofnon-recurringprofitandlossreaches1.56billionyuan,representing33.2%and51.7%year-on-yeargrowth,respectively.TheCompanyinsistsonindependentinnovationandresearchanddevelopmentofbasicmaterials,stickstoproductleadership,focusesoncorebest-sellingproductsandfurtherpromotesthedevelopmentofchannels.Thankstothesemeasures,ourbrandawarenessandreputationarecontinuouslyimproved,andthebusinessperformanceandmanagementqualityalsodemonstrateexcellentresults.
(1)Medicalconsumablesbusiness:“internalgrowth+externalgrowth”togetherdrivedevelopment,and
conventionalproductsbusinessrealizesrapidgrowthInrecentyears,undertheinfluenceoftighteningglobalmedicalregulationandacceleratedprocessofpopulationagingandchronicdisease,themedicaldeviceindustryhasusheredinagoldenperiodofrapiddevelopment.Themedicalconsumablessectorisinarapiddevelopmentstageforitshighfrequencyofuseandlowindustrypenetrationrate.Comparedwiththeglobalmarket,China'smedicalconsumablesmarketismorepromisingintermsofscaleandgrowthrate.
Ourmedicalconsumablesbrand,WinnerMedical,hasbeencultivatingthemedicalconsumablesindustryformorethan30yearsandhassteadilywentthroughseveralroundsofeconomicandindustrydevelopmentcycles.Inthefaceofpublichealtheventsinthepastthreeyears,theCompanyhasmadeeveryefforttoguaranteethesupplyofmedicalsupplies.Whilemakingduecontributionstosociety,itsbrandawarenessandreputationhavebeensignificantlyimproved.Ourchannelshavebeenfurtherconsolidated,layingasolidfoundationfortheregularproductstoenterthehospitalandtheimprovementofC-endsalesperformance.In2022,themedicalsegmentachievedsalesrevenueof7.20billionyuan,upby83.7%year-on-year.Amongthem,therevenueofinfectionprotectionproductsgrowsby99.1%year-on-year,andtherevenueofconventionalproductsgrowsby59.8%year-on-year.Drivenbythedualapproachof“internalgrowth+externalgrowth”,ourproductlinesarefurtherenrichedthroughintegration,mergerandacquisition,whichprovidesasolidfoundationfortheCompany'sdevelopment.TheCompany'sstrategicpositioningof“leadingthefieldofmedicalconsumablesandprovidingone-stopmedicalconsumablessolutions”hastakenasolidstepforward.
1Products
TheCompanyiscommittedtobecomingaone-stopsolutionproviderformedicalconsumables,coveringadvancedwounddressingproducts,traditionalwoundcareanddressingproducts,consumableproductsinoperatingroom,infectionprotectionproductsandhealth&personalcareproducts.Withthechangingsituationofpublichealthincidentsathomeandabroad,thedemandforepidemicpreventionproductsincreasedsignificantlyduringtheyear.Theoperatingincomeofinfectionprotectionproductsis4.74billionyuan,ofwhichthemaskandprotectiveclothingproductscontribute4.48billionyuan,becomingthemainproductsofthemedicalsegmentintheyear.Leveragingthebrandawarenessandreputationstrengthenedbymasksandprotectiveclothing,ourconventionalproducts,drivenbythedualfactorsof“internalgrowth+externalgrowth”,achievedrevenueof2.47billionyuanduringthereportingperiod,anincreaseof59.8%year-on-year,withsalesrevenueofadvancedwounddressingproductsincreasingbymorethan
3.7times,anincreaseof108.4%afterexcludingM&A;thesalesrevenueofconsumableproductsintheoperatingroomincreasedby46.8%;thesalesrevenueofhealthandpersonalcareproductsincreasedby34.9%.Asoftheendofthereportingperiod,wehold680patentsinthemedicalconsumablessegmentand319medicalproductregistrations(including22registrationsofCategoryIIImedicalproducts).ThroughtheacquisitionofLongtermMedical,WinnerMedical(Hunan),WinnerGuilinandothercompanies,theCompanyincreasedproductlinesinthefieldsofadvancedwounddressings,injectionandpunctureconsumables,latexglovesandcondoms,whichstronglyimproveditsindustriallayout.Duringtheyear(fromthedateofequityacquisitiontotheendofthereportingperiod),theM&Acompaniescontributedatotalrevenueof810millionyuan.Inthefuture,theCompanywillcontinuetostrengthenthein-depthintegrationofM&Acompaniesinmultiplefieldssuchascapacityenhancement,producttechnology,brandchannelsandoperationmanagementtohelptherelevantproductionlinesmakegreatercontributionstotheCompany.
ChannelIn2022,thechannelstructureofmedicalconsumablebusinessrevenuehaschangedsignificantly.Duringthereportingperiod,thesalesrevenueofforeignsaleschannelswas1.24billionyuan.In2020,someordersweredeliveredthroughinter-shipment.In2021,therevenueofthecurrentperioddecreasedby18.2comparedwiththesameperiodlastyearunderthebackgroundofthehighincreaseintherevenuebase.Thethreemajorchannels,B-end-hospitalsandC-end-e-commerceandpharmacies,contributed3.62billionyuan,940millionyuanand580millionyuanrespectivelyinrevenuein2022,withyear-on-yeargrowthratesof190.6%,39.1%and76.7%,respectively.Intermsofhospitalsection,thesituationofpublichealthincidentisseverein2022.Inordertoensurethesafetyandhealthoffront-linehealthcareprofessionalswithlimitedmedicalresources,theCompanyprioritizesthesupplyofepidemicpreventionproductstohospitalsandcontrolstheresourcesofotherchannelstoacertainextent.Asaresult,theoverallrevenueofthehospitalsectionincreasessignificantly.Inadditiontotheincreaseofbrandrecognitionthankstotheepidemicpreventionproducts,theCompanyhasalsoconsolidateditsprofessionalbrandimagethroughaseriesofacademicconferencesandacademicpromotionactivities,whichhasstronglyenhancedthehospitalcoveragerate.Bytheendof2022,theCompanyhascoveredmorethan5,000medicalinstitutionswithremarkableexpansioneffect.In2022,C-endsalesexceeded1.5billionyuan,upby51.4%comparedto2021,demonstratingvigorousgrowthmomentum.Intermsofe-commerce,theCompanyhasoutstandingperformanceontraditionalthird-partyonlinesalesplatformsincludingTmall,JingdongandVipshop,andrankedtopthreeinthecoremajorsingleproductcategoryonthecross-bordere-commerceplatformofAmazon;bytheendofthereportingperiod,thecumulativenumberoffansondomestice-commerceplatformswas13.44million,with4.2millionaddedduringtheyear,andthesalesperformanceone-commerceplatformsremainedleadingintheindustry.Asforpharmacies,150,000OTCpharmacieswerecoveredbytheendoftheperiod,with30,000newonesaddedduringtheyear.
(2)Healthyconsumergoodsbusiness:cottontechnologyrealizesdifferentiation,andtherevenueremainsstable
againstthetrendSincetheoccurrenceofpublichealthincident,thelifestyle,consumptionhabitsandincomelevelsofpeoplehavebeenprofoundlyaffected.AccordingtothedatareleasedbytheNationalBureauofStatistics,thetotalretailsalesofconsumergoodsin2022was43.97trillionyuan,down0.2%year-on-year;thenationalpercapitaconsumerspendingwas24,538yuan,down0.2%inrealtermsexcludingpricefactors;thetotalretailsalesofconsumergoodsandtheactualgrowthrateofconsumerspendingfellslightlyyear-on-year.Insuchamarketenvironment,thetrackofnationalbrandofmaternalandinfantproductsthattheCompanystaysisinlinewiththegeneraltrendofmodernexquisitechildcareandthevigorousdevelopmentofnationaltideeconomy,showingstrongresilienceofdevelopment.Purcotton,theCompany'shealthyconsumergoodsbrand,focusesontheupgradingmarketofmaternalandinfantconsumption.Backedbytheparentcompanywithamedicalbackgroundofmorethan30years,itstartswiththetechnologyofcottonspunlacenon-wovenfabric,andcontinuouslyenrichitsproductcategories.Theconsumptionscenehasexpandedfrommaternalandinfanttothewholefamilyconsumptionofwomenandhome.Withcomfortable,healthyandenvironmentallyfriendlymaterials,medicalbackground,customerbaseofhighloyaltyandexcellentproductquality,thebrandestablishedsignificantcompetitiveadvantageofdifferentiation.In2022,facingaweakdomesticconsumermarket,Purcottonactivelyrespondedtothechallenge,andachievedsalesrevenueof4.05billionyuanduringthereportingperiod,maintainingstabilityagainstthetrend.Comparedwith2019,therevenuegrewby34.8%,withathree-yearbusinessscaleCAGRof10.5%.
ProductsGuidedbytheprincipleof“cottonfiberonly”,Purcottoncontinuouslyinvestsintechnologyresearchanddevelopment,andhasbuiltupadifferentiatedproductmatrix.TheCompany'sconsumerproductsincludenon-wovenproductsandwovenproducts,whichcontributedtotheoperatingincomeof2.17billionyuanand1.89billionyuanrespectivelyduringthereportingperiod,withyear-on-yearchangesof1.4%and-1.5%respectively.Intermsofnon-wovenproducts,Purcottonhascreatedspecialadvantagesofcottonmaterialthroughavarietyofpatentedtechnologiesandactivelyinnovated.In2022,ithasstrivedtoenhanceproductcompetitivenessthroughupgradingbasicmaterialsandinnovatingproductcategories.TheCompanycreatedthefirstcottonsofttowelcategoryin2009,andPurcottonledtheformulationofthenationalstandardof“SoftTowels”in2021,furtherpromotingitspositionintheindustry.ThefirstpatentofsanitarynapkinsofPurcottonistoreplacethecorebodyofwoodpulpwith100%cotton,whichisskin-friendlyandnotsensitive.Withintheyear,thedryandrefreshingofthecottonsurfacelayerisfurtherimproved,andthetechnicalbarrieroftheproductiscreated.In2022,againstthebackgroundofoverallweakconsumption,theCompanyisalsoconfrontedwiththelow-pricecompetitionfromchemicalfibermaterialssubstitutesandcottoncompetitors.Itpromotestheadvantagesofcottonthroughthebrandreleaseconferenceof“SheyuGongsheng”,theoriginalIPseriesvideoof“WhatSheChanged”,thespokesperson'sofficialannouncement,andthedocumentaryof“WhatIsCotton”,etc.,inanefforttoprotectthemarketshare.Duringthereportingperiod,wetanddrycottontowelandsanitarynapkinproductsachievedoperatingincomeof1.16billionyuanand570millionyuanrespectively,representingasteadytoslightincreasecomparedto2021.Bytheendofthereportingperiod,Purcottonhasobtainedatotalof469patents,134newpatentsduringtheyear,andwontheChinaGreenProductandcarbonfootprintcertification,leadingthegreendevelopmentoftheindustry.Intermsoftextileproducts,Purcottoncentersaroundtheofmiddleandadvancedvaluepositioning,focusingondelicatemothersandhigh-qualityandhigh-yieldgroups.Withthesafety,comfortandskin-friendlyfeaturesofcottonmaterial,itmeetstheneedsofmaternalandinfantmarketsandaccumulatesultra-stickycustomergroups.Throughtheexpansionofproductcategories,theconsumptionsceneisextendedtoadultclothingandhometextiles.In2022,thesalesrevenueofbabyandchildclothing,adultclothingandhouseholdtextileconsumergoodsreached850millionyuan,690millionyuanand350millionyuanrespectively,withgauzebathtowels,salivatowelsandbabyandchildcuddlesoccupyingaleadingmarketshare.Asthemainchannelforsalesofbabyproducts,storeswereclosedtemporarilyandfrequentlyduringtheyear,resultingina
2.6%year-on-yeardeclineinrevenuefrombabyapparelandsupplies.Theoverallrevenueofadultapparelremainedstable.2Channel
Purcottonhasdiversifiedonlineandofflinechannels,includingtraditionalthird-partyplatformssuchasTmall,Jingdong,Vipshop,e-commerceplatformssuchasTikTokInterest,anditsownplatformssuchasofficialwebsiteandminiprogram.Intermsoftheofflinechannel,ittakesthestrategyofincreasingthedensityofofflinedirect-salestoresinfirst-tierandsecond-tiercities,andacceleratingthedevelopmentofhigh-qualityfranchisees;Atthesametime,throughthemodeofofflineexperienceandonlinere-purchase,deepintegrationofmultiplechannels,complementaryadvantagesofmultipleplatforms,Omni-channellayoutwasestablished.Bytheendofthereportingperiod,thenumberofmembersintheregionexceeded43million,andthenumberofomnichannelmembersincreasedby23.7%year-on-year.Duringtheyear,Purcottoncontinuedtoexploreitsonlinechannels,lookingforbreakthroughsfromthefourdimensionsofnewproducts,popularproducts,new
customersandservice.Itimprovesitsfineoperationability,focusesonthematrixofnewproductsandpopularproducts,andstrengthensthemutualpenetrationamongcategories.Throughbrandactivities,contentcommunity,membershipsystemandotherin-depthoperation,theconversionrateofnewcustomersandoldcustomersareincreased.In2022,onlinechannelsachievedsalesrevenueof2.57billionyuan,anincreaseof0.9%overthepreviousyear.In2022,duetothedirectimpactofpublichealthincidentontheofflineconsumptionindustry,thepressureofstoreoperationincreasedsignificantly.Bytheendof2022,theCompanyhad340offlinestores(including314directlyoperatedstoresand26franchisedstores),opened45newstores(39newdirectlyoperatedstoresand6franchisedstores)andclosed25inefficientandloss-makingstores(22directlyoperatedstoresand3franchisedstores);theannualsalesrevenueofofflinestoreswas1.18billionyuan,down4.1%year-on-year.Inthefaceofchallenges,theCompanytooktheinitiativetooptimizetheexistingstorestructure,andactivelyexpandedO2Ochannelsandlaunchedultra-fastserviceforstores.ItpromotedthecooperationbetweenofflinestoresandonlineplatformssuchasMeituan,JingdongDaojiaandEle.me,whichnotonlyincreasedthevisibilityandcustomerflow,butalsoenhancedthecustomerexperienceandtheofflinesalesperformance.Thedevelopmentofsupermarketchannelsseeksprogresswhilemaintainingstability.Morethan400newlargestores,morethan4,500beautystoresandmorethan8,000conveniencestoreshavebeenaddedintheyear.Besides,dryandwetcottonsofttowelsanddisposabletravelproductshavebeengraduallyintroduced.In2022,supermarketchannelscontributed230millionyuaninrevenue,up14.1%yearonyear.Thenaturalmaterialandexcellentqualitybringtogetherloyalcustomerbasewhovaluethematerial,natural,comfortableandenvironmentalprotection,andthere-purchaserateofthebrandmaintainsahighlevel.In2022,there-purchaserateofPurcottonstoresisnearly50%,andthere-purchaserateofofficialwebsitechannelsisnearly45%.
(3)CompanyprofitabilityanalysisAffectedbythedeclineintheglobalsalespriceofmedicalprotectionproductsandtheincreaseintheproportionofbusinesstothecompany'soverallsales,thegrossmarginofinfectionprotectionproductsdecreasedby5.8percentagepoints,draggingtheoverallgrossmargindownby2.5percentagepointsto47.4%duringthereportingperiod.In2022,theCompanyvigorouslycarriedoutcostreductionandefficiencyimprovementactions.Throughend-to-endcostreductionofproductsandvigorousreductionofthenumberofSKUs,thecostcontroleffectwasremarkable,andthemarketingexpenseratewassignificantlyreduced.TheCompanyattachesgreatimportancetoresearchanddevelopmentandcontinuouslyincreasestheinvestmentinR&Dexpenses.Therateofresearchanddevelopmentexpenseincreasedfrom3.7%to4.3%intheyear,andmaderemarkableachievementssuchascontinuousbreakthroughincoretechnology,increasingthenumberofpatentsandregistrationcertificatesofmedicalproducts.Undertheinfluenceoftheabovefactors,theCompanyachievedanetprofitattributabletoshareholdersofthelistedcompanyof1.65billionyuanin2022,representingayear-on-yearincreaseof33.2%.Afterexcludingtheimpactofgovernmentsubsidies,investmentincomeoftradingfinancialassetsandothernon-recurringitemsonnetprofit,theCompanyachievednon-GAAPnetprofitof1.56billionyuan,anincreaseof51.7%.
(II)Overviewofoperationandmanagement
(1)BrandbuildingWinnerMedicalconsistentlyenhancesbrandrecognitionthroughcompellingbrandstorytelling,behavesasaninfluentialfigureinacademicsandmarketingthroughclinicalpromotion,optimizesend-to-endmarketingtransformationthroughcontentoperation,createsbrandvaluesthroughpublicwelfareactivities,andachievescorporatestrategiesbyleveragingbrandmarketingasacatalyst.Astobranding,WinnerMedicalcooperatedandengagedwithleadingmediaandbusinessmagnatestoco-createpositivecommunicationsandactivelybuilditsbrandimage.TheadvertisingonWeibo,WeChat,Xiaohongshu,Douyin,elevatorads,andotherchannelsgeneratedanoverallexposureofover1.4billion.TheCompanyshowcaseditslatestproductsandcutting-edgetechnologiestodomesticandinternationalcustomersandconsumersbyparticipatinginfiveexhibitionsthroughouttheyear.Regardingcommunications,WinnerMedicalaffectedtheprofessionalmarketthroughacademicconferencesatalllevels,participatinginover85educationalactivitiesateachlevelinthewholeyear,suchastheWoundCareTrainingBaseofWinnerMedicalAcademyestablishedjointlybytheCompanyandtheSecondAffiliatedHospitalofGuangzhouMedicalUniversitytoprovidetheoreticalandpracticaltrainingforclinicalworkersinthefieldofprofessionalwoundcare.WinnerMedicallaunchedcross-industrycooperationwithvariousToCyoungbrands,andtheco-brandedproductsweresoldoutonlinein3weeks,while3onlinecross-industrycampaignsgeneratedanoverallexposureofover45million.In2022,thecompanyplayedapivotalroleindrivingtrafficandsalesforatotalof7,000+endstores.
Purcottoncontinuedtodeepenitscommunicationwithconsumersbyeffectivelyconveyingthenumerousadvantagesof"cotton"intermsofenvironmentalprotectionandsustainabledevelopment.Thiswasaccomplishedthroughtheendorsementofspokespersons,thecreationofhigh-qualityoriginalcontent,offlineexhibitiontours,andpressconferences.Bypromotingcultureoutputtoreachemotionalresonancewithconsumers,thecompanydemonstrateditscommitmenttodeliveringbrandhumanisticcareandimprovingbrandawarenessandreputation.OnMarch1,PurcottonofficiallyannouncedGuoJingjing,aformernationaldivingteamathlete,asthebrandspokesperson.SinceMarch2022,Purcotton,togetherwithChinaWomen'sNewsandXinShixiang,hascreatedtheoriginalbrandcharacterdocumentaryseries“HerChanges”,presentingstoriesofLuoHaixiang,ShuiQingxiaandXuYing.Thespiritofthetimeswasrecordedthroughtheexperienceofrealpeople,soPurcottonwasdeeplyconnectedwiththespiritandvaluesofusersandthebrand'sowncontentIPwascreated.Ontheoccasionofthecoming“WorldOceanDay”,Purcottonheldthe“GoGreenGoLive”BrandConferenceandthe2021SocialResponsibilityReportConferenceofWinnerMedical,todeeplyintroducetheenvironmentalprotectionvalueofcottonandconveythebrand'ssustainabledevelopmentvisiontoconsumersthroughonlinelivebroadcasts.Inaddition,during“818SeasonalMembershipCampaign”in2022,Purcottonannouncedthatthreeclassicproducts,includingits100%purecottontissues,obtainedSGScarbon-footprintcertificationonMembers'Daythemed“HearingBloomsandMeetingwithPeacefulMinds”.InSeptember,Purcottonconductedaqualitytraceabilityjourney,andtoldstoriesaboutfourcottonkeeperson“perseverance”,“faith”,and“innovation”,interpretingitsdeepunderstandingofthespiritofcotton.
(2)ProductR&DTheCompanystickstoindependentinnovationanddevelopmentofbasicmaterials.Inmedicalwoundcare,theCompanyhasbeenupgradinganditeratingfunctionalwounddressings,allowingproductstoberecognizedbycustomersathomeandabroad.TheCompanyisalsoacceleratingthearrangementsforaccesstodomesticandforeignproductdocumentstoprepareforthechangesinEUregulationsandthesupplyoflocally-producedalternativesfordomestichospitals.AsthefirstbatchoftheCompany'sproducts,severalindependently-developedwetdressingproductshavebeenapprovedbyFDA,whilemorethanadozenwetdressingproductsareapplyingforCE,FDAanddomesticregistration,expectingtoobtaincertificatesin2023.TheCompanyhassuccessfullydevelopedandmarketedbiodegradablemasks,facemaskserieswithcottonlining,highlybreathableN95medicalprotectivefacemasks,etc.,providingsolutionsforeco-friendlymasksandmakingmaskwearingmorecomfortable.Inhealthconsumergoods,theairpleatedyarncottonfabric,pioneeredbytheCompanyintheindustryandfeaturedwithfluffy,comfortable,skin-friendlyandsoftfeelings,hasbeenappliedtohomewear,bathtowels,andbeddingsuites.Thecottonsunscreen3.0developedbytheCompanynotonlyhasasupersunscreeneffectofUPF50+,butisthinner,lighter,morebreathable,andcomfortable,withanupgradedfunctionofpeppermintcooling.Also,coreproductsoftheCompany,suchascottontissues,wettissuesandgauzeproducts,weresuccessfullycertifiedasgreenproducts,generallyonlyavailabletotheTop5%ofenterprisesintheindustry.CottontissuesobtainedthefirstgreenproductcertificateinChina.TheCompanythereforeencouragesallenterprisestojointly“achievethecarbonpeakandcarbonneutralitygoals,andprotectlucidwatersandlushmountains”.TheCompanyhasalsostartedthecarbonfootprintcertificationofcorecottonproducts.Thetotalamountofgreenhousegasemissionsofproductscanbequantitativelycalculatedthroughthecarbonfootprintcertificationofcottontissues,wettissues,gauzebabyclothes,four-piecebeddingsets,andT-shirts.Implementingcarbonfootprintcertificationmarksanimportantsteptomeetallcottonproducts'carbonpeakandcarbonneutralitygoals.Regardingindustry-university-researchcollaboration,theCompanyworkedwithHuazhongAgriculturalUniversitytoestablishtheCottonResearchInstitute.ItappointedProfessorZhangXianlongastheChiefCottonScientistofPurcottontoconductcottonbreedingandresearchanddevelopmentprojectsforspunlace.Meanwhile,theCompanyandSoochowUniversityjointlyfoundedtheSoochowUniversity-PurcottonTechnologyCo.,Ltd.TechnologyInnovationCenterforHealthySleepProductsIndustry,allowingforresearchanddevelopmentofhealthysleepbeddingproductstomeetthehealthneedsofconsumers.Alsoin2022,theCompany,alongwiththeNationalEnvironmentalProtectionEngineeringandTechnologyCenterforTextileIndustryPollutionReduction,DonghuaUniversity,carriedouttheanalysisandtestingofmicroplasticreleasefromtextilematerials,andcalledfordeplasticizationamongconsumersbyshowcasingshredsofevidenceofscientifictesting.
(3)Digitaltransformation
Topromote“consumer-centricanddigitalandintelligentmanufacturing-driven”businesstransformation,andcarryoutthefivedigitalstrategiesof“digitalcommodityoperation”,“omni-channeldigitaloperation”,“consumerdigitaloperation”,“digitalsmartlogisticsdigitaloperation”and“smartmanufacturingdigitaloperation”,theCompanyfurtherdeliveredthedigitalprojectphaseofcorebusinessoperation.Iteffectivelypromotedthewholeindustrialchainofthegrouptodriveandleadtheoverallbusinesschangeandinnovationfromtoptobottom.TheCompanyadvanceddigitalizationprojectsin2022asfollows:①TheCompanycontinuouslyupgradesdigitaloperationcapabilityforallcategoriesofcommodities:buildingafull-dimensionalcommoditycost-volume-profit(CVP)modelbasedonthefull-lifecycleoperationintegrationofcommodities,andeffectivelyachievingoptimalsolutionsforcommoditygrossprofitandinventorythroughAItechnologies,suchasalgorithmenginesandmachinelearning.Theforecastingmodeloptimizedandimprovedtheaccuracyofcommodity-channel-consumermatching,balancedproductioncapacitythroughalgorithmicautomaticdistributionandreplenishmentforecasting,andautomaticallymodeledandgeneratedgood-sellingelementlabelstoimprovetheoverallcommodityoperationcapabilityfurther.②TheCompanyconnectedallmemberstoconductomni-channelintegratedmarketingoperations,toensuretheconsistencyofmemberexperienceandimprovetherepurchaserateandtransformationofmembers.In2022,theCompanycompletedtheconnectionofallmembers.Inthefuture,theCompanywillfurtherpromotethebuildingoftheCDP-MAmarketingcloudandstrivetoacceleratethedigitaloperationcapabilityofomni-channelconsumerscomprehensively.③TheCompanypromotedtheconstructionofdigitaloperationcapacityofsmartlogisticsintheentirenetworkwarehouse,andstrovetocreateanintegrated,intelligent,scalable,andactivelogisticssystemwithquickresponsespeedbasedoncustomerdemandorientation,andindependentlydevelopedWMS&TMSsystemsthroughnewtechnologies,effectivelypromotinglogisticscostsreduction,andimprovingefficiencyanduserexperience.In2022,theCompany'sindependently-developedWMShelpedcompletetheupgradingoftheautomatedthree-dimensionalwarehouseofHuanggangLogistics,whichhasbeenpromotedandcontributedtotheupgradingoftheautomatedthree-dimensionalwarehouseofTianmenLogistics.④TheCompanyacceleratedthebuildingofdigitaloperationcapabilitiesforintelligentmanufacturing.Basedonthenew-generationICTtechnologiessuchasBigData,cloudcomputing,IoT,andAI,theWin+IntelligentManufacturingDigitalOperationPlatformconsistsof4majorapplications,namelyAdvancedPlanning&SchedulingSystem(APS),ManufacturingExecutionSystem(MES),QualityManagementSystem(QMS)andInternetofThingsPlatform(IoT).Withover300functions,itcoversvariousfunctions,suchasplanningandscheduling,manufacturingexecution,qualitymanagement,equipmentmonitoring,energymanagement,enablingdigitalmanagementofquality,cost,deliveryandefficiency.Bytheendof2022,theWin+Platformhassuccessfullygonelivein3plantstoimprovetheoverallcompetitivenessofmanufacturing.
2.RevenuesandCosts
(1)CompositionofoperatingincomeOveralloperatingincome
Unit:yuan
| 2022 | 2021 | ||||
| Amount | Proportioninoperatingincome | Amount | Proportioninoperatingincome | Year-on-yearincrease/decrease | |
| Totaloperatingincome | 11,351,331,545.08 | 100% | 8,037,420,812.91 | 100% | 41.23% |
| Byindustries | |||||
| Medicalconsumables | 7,202,766,247.84 | 63.46% | 3,922,006,868.38 | 48.80% | 83.65% |
| Healthyconsumergoods | 4,054,985,562.16 | 35.72% | 4,054,214,732.21 | 50.44% | 0.02% |
| Others | 93,579,735.08 | 0.82% | 61,199,212.32 | 0.76% | 52.91% |
| Byproducts | |||||
| Medicalconsumables-traditionalwoundcareandwounddressingproducts | 1,077,558,999.19 | 9.49% | 924,789,927.57 | 11.51% | 16.52% |
| Medicalconsumables-advancedwounddressingproducts | 466,329,531.98 | 4.11% | 98,746,452.60 | 1.23% | 372.25% |
| Medicalconsumables-operatingroomconsumables | 471,737,488.55 | 4.16% | 321,442,554.19 | 4.00% | 46.76% |
| Medicalconsumables-infectionpreventionproducts | 4,735,248,687.64 | 41.72% | 2,377,805,588.44 | 29.58% | 99.14% |
| Medicalconsumables-health&personalcareproducts | 268,849,070.13 | 2.37% | 199,222,345.58 | 2.48% | 34.95% |
| Medicalconsumables-otherproducts | 183,042,470.35 | 1.61% | 0.00 | 0.00% | 100.00% |
| Healthyconsumergoods-wetanddrycottontissues | 1,155,141,187.50 | 10.18% | 1,140,041,080.92 | 14.18% | 1.32% |
| Healthyconsumergoods-sanitarypads | 569,333,764.43 | 5.02% | 548,455,495.71 | 6.82% | 3.81% |
| Healthyconsumergoods-othernon-wovenproducts | 441,125,708.69 | 3.89% | 447,206,583.29 | 5.56% | -1.36% |
| Healthyconsumergoods-babyclothingandsupplies | 848,630,484.33 | 7.48% | 871,487,147.78 | 10.84% | -2.62% |
| Healthyconsumergoods-adultclothing | 687,219,850.71 | 6.05% | 679,999,664.91 | 8.46% | 1.06% |
| Healthyconsumergoods-otherwovenproducts | 353,534,566.50 | 3.11% | 367,024,759.60 | 4.57% | -3.68% |
| Otherbusinesses | 93,579,735.08 | 0.82% | 61,199,212.32 | 0.76% | 52.91% |
2022
| 2022 | 2021 | ||||
| Amount | Proportioninoperatingincome | Amount | Proportioninoperatingincome | Year-on-yearincrease/decrease | |
| Byregions | |||||
| Domestic | 10,044,710,560.59 | 88.49% | 6,343,778,322.52 | 78.93% | 58.34% |
| Abroad | 1,306,620,984.49 | 11.51% | 1,693,642,490.39 | 21.07% | -22.85% |
| Bysalesmodes | |||||
| Medicalconsumables-directsales | 1,454,564,874.56 | 12.81% | 1,247,971,768.24 | 15.53% | 16.55% |
| Medicalconsumables-distribution | 4,539,719,035.77 | 40.01% | 1,494,353,752.08 | 18.59% | 203.79% |
| Medicalconsumables-agency | 267,075,893.05 | 2.35% | 502,684,789.51 | 6.25% | -46.87% |
| Medicalconsumables-e-commerce | 941,406,444.46 | 8.29% | 676,996,558.55 | 8.42% | 39.10% |
| Healthyconsumergoods-e-commerce | 2,565,052,802.59 | 22.60% | 2,541,320,964.05 | 31.62% | 0.93% |
| Healthyconsumergoods-offlinestores | 1,184,292,470.95 | 10.43% | 1,234,967,801.51 | 15.37% | -4.10% |
| Healthyconsumergoods-supermarketchannels | 231,766,054.19 | 2.04% | 203,037,328.70 | 2.53% | 14.15% |
| Healthyconsumergoods-keyaccounts | 73,874,234.43 | 0.65% | 74,888,637.95 | 0.93% | -1.35% |
| Otherbusinesses | 93,579,735.08 | 0.82% | 61,199,212.32 | 0.76% | 52.91% |
(2)Industries,products,regionsandsalespatternsthataccountformorethan10%oftheCompany'soperating
incomeoroperatingprofits
√Applicable?Notapplicable
Unit:yuan
| Operatingincome | Operatingcosts | Grossprofitmargin | Year-on-yearincrease/decreaseofoperatingincome | Year-on-yearincrease/decreaseofoperatingcost | Year-on-yearincrease/decreaseofgrossprofitmargin | |
| Byindustries | ||||||
| Medicalconsumables | 7,202,766,247.84 | 3,996,133,140.99 | 44.52% | 83.65% | 94.09% | -2.98% |
| Healthyconsumergoods | 4,054,985,562.16 | 1,914,013,438.24 | 52.80% | 0.02% | -1.15% | 0.56% |
| Byproducts | ||||||
| Medicalconsumables-infectionpreventionproducts | 4,735,248,687.65 | 2,441,987,072.10 | 48.48% | 99.14% | 123.98% | -5.71% |
| Healthyconsumergoods-wetanddrycottontissues | 1,155,141,187.50 | 585,437,456.89 | 49.32% | 1.32% | 1.05% | 0.14% |
Operatingincome
| Operatingincome | Operatingcosts | Grossprofitmargin | Year-on-yearincrease/decreaseofoperatingincome | Year-on-yearincrease/decreaseofoperatingcost | Year-on-yearincrease/decreaseofgrossprofitmargin | |
| Byregions | ||||||
| Domestic | 10,044,710,560.59 | 5,225,576,005.36 | 47.98% | 58.34% | 64.01% | -1.80% |
| Abroad | 1,306,620,984.49 | 747,224,811.93 | 42.81% | -22.85% | -11.27% | -7.47% |
| Bysalesmodes | ||||||
| Medicalconsumables-directsales | 1,454,564,874.56 | 795,477,797.59 | 45.31% | 16.55% | 18.16% | -0.74% |
| Medicalconsumables-distribution | 4,539,719,035.78 | 2,633,795,605.22 | 41.98% | 203.79% | 203.05% | 0.14% |
| Healthyconsumergoods-e-commerce | 2,565,052,802.59 | 1,322,606,097.28 | 48.44% | 0.93% | -0.31% | 0.65% |
| Healthyconsumergoods-offlinestores | 1,184,292,470.95 | 467,012,543.64 | 60.57% | -4.10% | -6.83% | 1.16% |
IfthestatisticalcaliberoftheCompany'smainbusinessdataisadjustedinthereportingperiod,theCompanyshallfollowtheprimarybusinessdatainthepastyearchangedbythecaliberattheendofthereportingperiod
√Applicable?Notapplicable
Unit:yuan
| Operatingincome | Operatingcosts | Grossprofitmargin | Year-on-yearincrease/decreaseofoperatingincome | Year-on-yearincrease/decreaseofoperatingcost | Year-on-yearincrease/decreaseofgrossprofitmargin | |
| Byindustries | ||||||
| Byproducts | ||||||
| Medicalconsumables-traditionalwoundcareandwounddressingproducts | 1,077,558,999.19 | 721,435,653.89 | 33.05% | 16.52% | 14.77% | 1.02% |
| Medicalconsumables-advancedwounddressingproducts | 466,329,531.98 | 214,388,590.22 | 54.03% | 372.25% | 451.20% | -6.58% |
| Medicalconsumables-operatingroomconsumables | 471,737,488.55 | 324,986,710.26 | 31.11% | 46.76% | 54.99% | -3.66% |
| Medicalconsumables-infectionpreventionproducts | 4,735,248,687.65 | 2,441,987,072.10 | 48.48% | 99.14% | 123.98% | -5.71% |
| Medicalconsumables-health& | 268,849,070.13 | 160,887,989.85 | 40.16% | 34.95% | 73.75% | -13.36% |
| personalcareproducts | ||||||
| Medicalconsumables-otherproducts | 183,042,470.35 | 132,447,124.66 | 27.64% | / | / | / |
| Byregions | ||||||
| Bysalesmodes |
ReasonsforchangeofstatisticalcaliberWiththeexpansionoftheCompany'sbusinessscope,theproductcategorieshavebecomemorediversified.Inthisreport,theCompanyreclassifiedtheproductcategoriesaccordingtoapplicationscenarios,andadjustedtheyear-on-yeardatabasedonthesamecaliber.TheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.
Unit:yuan
| Operatingincome | Operatingcosts | Grossprofitmargin | Year-on-yearincrease/decreaseofoperatingincome | Year-on-yearincrease/decreaseofoperatingcost | Year-on-yearincrease/decreaseofgrossprofitmargin | |
| Byindustries | ||||||
| Medicalconsumables | 7,202,766,247.84 | 3,996,133,140.98 | 44.52% | 83.65% | 94.09% | -2.98% |
| Healthyconsumergoods | 4,054,985,562.16 | 1,914,013,438.24 | 52.80% | 0.02% | -1.15% | 0.56% |
| Byproducts | ||||||
| Medicalconsumables-infectionpreventionproducts | 4,735,248,687.65 | 2,441,987,072.10 | 48.48% | 99.14% | 123.98% | -5.71% |
| Healthyconsumergoods-wetanddrycottontissues | 1,155,141,187.50 | 585,437,456.89 | 49.32% | 1.32% | 1.05% | 0.14% |
| Byregions | ||||||
| Domestic | 10,044,710,561.08 | 5,225,576,005.36 | 47.98% | 58.34% | 64.01% | -1.80% |
| Abroad | 1,306,620,984.00 | 747,224,811.93 | 42.81% | -22.85% | -11.27% | -7.47% |
IfthestatisticalcaliberoftheCompany'sprimarybusinessdataisadjustedinthereportingperiod,theCompanyshallfollowtheprimarybusinessdatainthepastyearchangedbythecaliberattheendofthereportingperiod?Applicable√NotapplicableWhethertheCompanyhassalesterminalsinbrick-and-mortarstores
√Yes?NoDistributionofbrick-and-mortarstores
| Typesofstores | Numberofstores | Areaofstores | Numberofnewstoresduringthereportingperiod | Numberofstoresclosedattheendofthereportingperiod | Reasonsforstoreclosings | Brandsinvolved |
| Direct-salestores | 314 | 111,393 | 39 | 47 | Voluntarilystoreclosingbecauseofexpirationofthecontractorsubjective | Consumergoodsstores |
| wishes | |||||
| Franchises | 26 | 5,913 | 6 | 3 |
Note:50storeswereclosedattheendofthereportingperiod,namely,25storesforPurcotton,15storesforPurunderwearand10storesforPureH2B.Totalareaandperformancesofdirect-salestores
| Levelsofareas | Numberofstores | Totalarea | Operatingincomein2022('0,000yuan) | Sameperiodlastyear | Averageyear-on-yearincrease/decreaseinperformanceofstores | Reasons |
| 300m2orless | 130 | 28,622.15 | 34,611.27 | 38,255.92 | -9.53% | |
| 300-500m2 | 85 | 31,494.59 | 31,344.82 | 34,344.48 | -8.73% | |
| 500-800m2 | 45 | 27,786.19 | 21,053.33 | 22,809.54 | -7.70% | |
| 800m2ormore | 14 | 13,292.48 | 8,056.85 | 8,442.06 | -4.56% | |
| Total | 274 | 101,195.41 | 95,066.26 | 103,852.01 | -8.46% | Significantdropinstoretraffic,storeclosures,lowerlogisticsefficiencyduetopublichealthevents |
Note:TheabovestoresarePurcotton'sstoresopenedformorethan12monthsasofDecember31,2022.TheoperatingincomeofofflinestoresdoesnotincludethesalesofofflinestoresdivertedtoonlineWechatmini-programs.Top5StoresintermsofOperatingIncome
| S/N | Nameofstores | Openingdate | Operatingincome(yuan) | Averageperformanceofthestore |
| 1 | First | October25,2017 | 13,486,774.07 | 33,399.64 |
| 2 | Second | August6,2012 | 10,976,200.41 | 18,769.47 |
| 3 | Third | September19,2014 | 9,909,370.81 | 13,177.35 |
| 4 | Fourth | January18,2018 | 9,889,774.79 | 7,419.19 |
| 5 | Fifth | November11,2017 | 9,255,081.79 | 14,227.64 |
| Total | 53,517,201.88 | 14,370.54 |
Newstoresoflistedcompanies
√Yes?No
| Nameofstores | Addressofstores | Openingtime | Contractarea(m2) | Investmentamount(yuan) | ProductCategory | Businesstype | Businessmodel | Propertyownershipstatus | Numberofstores |
| Direct-salestoresofPurcotton | NorthChina | 2022 | 1,694.96 | 15,070,595.23 | Healthyconsumergoods | Retail | Direct-salestores | Purcottonleasing | 7 |
| Direct-salestoresofPurcotton | EastChina | 2022 | 1,460.78 | 10,106,474.33 | Healthyconsumergoods | Retail | Direct-salestores | Purcottonleasing | 6 |
(Continued)
| Nameofstores | Addressofstores | Openingtime | Contractarea(m2) | Investmentamount(yuan) | ProductCategory | Businesstype | Businessmodel | Propertyownershipstatus | Numberofstores |
| Direct-salestoresofPurcotton | SouthChina | 2022 | 1,400.70 | 10,540,034.07 | Healthyconsumergoods | Retail | Direct-salestores | Purcottonleasing | 6 |
| Direct-salestoresofPurcotton | WestChina | 2022 | 1,857.02 | 14,016,787.56 | Healthyconsumergoods | Retail | Direct-salestores | Purcottonleasing | 7 |
| Direct-salestoresofPurcotton | CentralChina | 2022 | 3602.08 | 23,672,260.89 | Healthyconsumergoods | Retail | Direct-salestores | Purcottonleasing | 13 |
| Purcottonfranchisees | SouthChina | 2022 | 251.00 | 601,331.06 | Healthyconsumergoods | Retail | Franchisees | Purcottonfranchisees | 1 |
| Purcottonfranchisees | WestChina | 2022 | 848.53 | 2,734,366.97 | Healthyconsumergoods | Retail | Franchisees | Purcottonfranchisees | 4 |
| Purcottonfranchisees | CentralChina | 2022 | 297.00 | 613,550.31 | Healthyconsumergoods | Retail | Franchisees | Purcottonfranchisees | 1 |
| Total | 11,412.07 | 77,355,400.42 | 45 |
Note:Investmentamountincludes:stores'inventorybalance,renovationcosts,renovationdeposit,6-monthleaseandpersonnelcostsattheendofthereportingperiod.DoestheCompanydisclosetheinformationontheTop5franchises?Yes√No
(3)WhethertheCompany'sphysicalsalesrevenueisgreaterthanthelaborservicerevenue
√Yes?No
| Classificationofsectors | Item | Unit | 2022 | 2021 | Year-on-yearincrease/decrease |
| Medicalconsumables-gauze | Salesvolume | ton | 7,173.86 | 5,919.75 | 21.19% |
| Output | ton | 6,957.17 | 6,039.90 | 15.19% | |
| Inventory | ton | 779.24 | 995.93 | -21.76% | |
| Medicalconsumables-cotton | Salesvolume | ton | 3,066.79 | 3,899.88 | -21.36% |
| Output | ton | 3,220.10 | 3,989.77 | -19.29% | |
| Inventory | ton | 795.22 | 641.92 | 23.88% | |
| Medicalconsumables-masks | Salesvolume | '0,000pieces | 596,641.63 | 337,060.18 | 77.01% |
| Output | '0,000pieces | 606,491.33 | 368,638.00 | 64.52% | |
| Inventory | '0,000pieces | 70,141.19 | 60,291.48 | 16.34% |
(Continued)
| Classificationofsectors | Item | Unit | 2022 | 2021 | Year-on-yearincrease/decrease |
| Medicalconsumables-protectiveclothing | Salesvolume | '0,000suits | 4,832.64 | 1,476.6 | 227.28% |
| Output | '0,000suits | 4,975.97 | 1,485.69 | 234.93% | |
| Inventory | '0,000suits | 210.94 | 67.61 | 211.99% | |
| Medicalconsumables-surgicalgowns | Salesvolume | '0,000suits | 1,525.87 | 1,380.46 | 10.53% |
| Output | '0,000suits | 1,489.54 | 1,389.60 | 7.19% | |
| Inventory | '0,000suits | 93.15 | 129.48 | -28.06% | |
| Medicalconsumables-purecottonspunlacenon-wovenfabrics | Salesvolume | ton | 5,460.52 | 4,785.61 | 14.10% |
| Output | ton | 5,438.90 | 4,780.12 | 13.78% | |
| Inventory | ton | 205.95 | 227.57 | -9.50% | |
| Healthyconsumergoods-cottontissues | Salesvolume | '0,000kits | 17,751.57 | 17,903.66 | -0.85% |
| Output | '0,000kits | 16,558.21 | 15,682.89 | 5.58% | |
| Inventory | '0,000kits | 2,253.98 | 3,447.34 | -34.62% | |
| Healthyconsumergoods-sanitarypads | Salesvolume | '0,000pieces | 69,709.59 | 68,805.68 | 1.31% |
| Output | '0,000pieces | 71,338.37 | 65,430.61 | 9.03% | |
| Inventory | '0,000pieces | 19,255.54 | 17,626.76 | 9.24% |
ReasonsforaYoYchangeof30%oraboveinrelevantdata
√Applicable?Notapplicable①Theincreaseinsalesandproductionofmedicalconsumables-maskswasmainlyduetotheriseindemandformasksbecauseofpublichealtheventsin2022;②Theincreaseinsales,productionandinventoryofmedicalconsumables-protectiveclothingwasmainlyduetotheriseindemandbecauseofpublichealthevents,leadingtoanincreaseinproduction,salesandinventory;③Thedecreaseinproductionandinventoryofmedicalconsumables-cottonwasmainlyduetothedecreaseinsalesorders;④Thedecreaseininventoryofhealthyconsumergoods-cottontissueswasmainlyduetothecontinuousdeclineincottonpricessincethesecondhalfof2022.Tocontroltheinventorycost,reducetheriskofdecliningcottonprices,acceleratecapitalturnover,theproductioncapacitywasadjustedtoconsumetheinventoryatthebeginningofthereportingperiodandreducetheinventoryattheend.
(4)PerformanceofsignificantsalescontractsandsignificantprocurementcontractsenteredintobytheCompany
uptothecurrentreportingperiod?Applicable√Notapplicable
(5)CompositionofoperatingcostsClassificationofsectorsandproducts
Unit:yuan
| Classificationofsectors | Item | 2022 | 2021 | Year-on-yearincrease/decrease | ||
| Amount | Proportioninoperatingcosts | Amount | Proportioninoperatingcosts | |||
| Medicalconsumables | Directmaterialcost | 2,967,805,720.35 | 74.27% | 1,553,548,646.80 | 75.45% | 92.35% |
| Medicalconsumables | Directlaborcost | 566,440,550.52 | 14.17% | 277,697,042.31 | 13.49% | 95.46% |
| Medicalconsumables | Manufacturingcost | 461,886,870.12 | 11.56% | 227,705,543.44 | 11.06% | 104.24% |
| Subtotalofmedicalconsumables | 3,996,133,140.99 | 100.00% | 2,058,951,232.55 | 100.00% | 94.09% | |
| Healthyconsumergoods | Directmaterialcost | 1,450,783,972.93 | 75.80% | 1,304,267,858.71 | 67.36% | 10.03% |
| Healthyconsumergoods | Directlaborcost | 189,156,042.76 | 9.88% | 249,417,648.37 | 12.88% | -16.68% |
| Healthyconsumergoods | Manufacturingcost | 274,073,422.55 | 14.32% | 382,661,654.23 | 19.76% | -29.15% |
| Healthyconsumergoods | 1,914,013,438.24 | 100.00% | 1,936,347,161.31 | 100.00% | -1.15% | |
| Otherbusinesses | 62,654,238.06 | 1.05% | 32,948,252.31 | 0.82% | 90.16% | |
| Total | 5,972,800,817.29 | 100.00% | 4,028,246,646.17 | 100.00% | 48.27% | |
Unit:yuan
| Classificationofproducts | Item | 2022 | 2021 | Year-on-yearincrease/decrease | ||
| Amount | Proportioninoperatingcosts | Amount | Proportioninoperatingcosts | |||
| Medicalconsumables | Traditionalwoundcareandwounddressingproducts | 721,435,653.90 | 12.08% | 628,614,229.19 | 15.61% | 14.77% |
| Medicalconsumables | Advancedwounddressingproducts | 214,388,590.22 | 3.59% | 38,895,080.43 | 0.97% | 451.20% |
| Medicalconsumables | Operatingroomconsumables | 324,986,710.26 | 5.44% | 209,676,565.58 | 5.21% | 54.99% |
| Medicalconsumables | Infectionpreventionproducts | 2,441,987,072.10 | 40.88% | 1,089,169,415.21 | 27.04% | 124.21% |
| Medicalconsumables | Health&personalcareproducts | 160,887,989.85 | 2.69% | 92,595,942.18 | 2.30% | 73.75% |
| Medicalconsumables | Otherproducts | 132,447,124.66 | 2.22% | 0.00 | 0.00% | 100.00% |
| Subtotalofmedicalconsumables | 3,996,133,140.99 | 66.90% | 2,058,951,232.59 | 51.11% | 94.09% | |
(Continued)
| Classificationofproducts | Item | 2022 | 2021 | Year-on-yearincrease/decrease | ||
| Amount | Proportioninoperatingcosts | Amount | Proportioninoperatingcosts | |||
| Healthyconsumergoods | Wetanddrycottontissues | 585,437,456.89 | 9.80% | 579,380,996.20 | 14.38% | 1.05% |
| Healthyconsumergoods | Sanitarypads | 208,924,450.61 | 3.50% | 196,483,663.31 | 4.88% | 6.33% |
| Healthyconsumergoods | Othernon-wovenproducts | 269,200,370.42 | 4.51% | 272,665,609.95 | 6.77% | -1.27% |
| Healthyconsumergoods | Babyclothingandsupplies | 399,427,311.55 | 6.69% | 422,346,957.04 | 10.48% | -5.43% |
| Healthyconsumergoods | Adultclothing | 283,748,829.92 | 4.75% | 285,951,444.13 | 7.10% | -0.77% |
| Healthyconsumergoods | Otherwovenproducts | 167,275,018.85 | 2.80% | 179,518,490.68 | 4.46% | -6.82% |
| Healthyconsumergoods | 1,914,013,438.24 | 32.05% | 1,936,347,161.31 | 48.07% | -1.15% | |
| Subtotal | ||||||
| Otherbusinesses | 62,654,238.06 | 1.05% | 32,948,252.31 | 0.82% | 90.16% | |
| Total | 5,972,800,817.29 | 100.00% | 4,028,246,646.21 | 100.00% | 48.27% | |
Note:None
(6)Whethertheconsolidationscopechangesinthereportingperiod
√Yes?NoFordetails,seeSectionX.FinancialStatements“Note9.Interestsinotherentities”.
(7)Majorchangesoradjustmentsofbusiness,productsorservicesoftheCompanyduringthereportingperiod?Applicable√Notapplicable
(8)MajorcustomersandmajorsuppliersTheCompany'smajorcustomers
| TotalsalesamountoftheTop5customers(Rmb) | 1,526,443,834.48 |
| TheproportionofTop5customers'combinedsalesamountintotalannualsales | 13.45% |
| TheproportionofrelatedpartysalesinthetotalannualsalesoftheTop5customers | 0.00% |
Top5keyaccountsoftheCompany
| S/N | Nameofcustomer | Sales(Rmb) | Proportionintotalannualsales |
| 1 | First | 643,525,748.95 | 5.67% |
| 2 | Second | 349,925,422.12 | 3.08% |
| 3 | Third | 200,560,115.56 | 1.77% |
| 4 | Fourth | 199,259,087.05 | 1.76% |
| 5 | Fifth | 133,173,460.80 | 1.17% |
| Total | -- | 1,526,443,834.48 | 13.45% |
Otherdescriptionsofmajorcustomers?Applicable√NotapplicableTheCompany'smajorsuppliers
| ThetotalpurchaseamountoftheTop5suppliers(Rmb) | 1,081,466,989.77 |
| TheproportionofTop5suppliers'combinedpurchaseamountintotalannualpurchase | 22.59% |
| TheproportionofrelatedpartypurchasesinthetotalannualpurchasesoftheTop5suppliers | 0.00% |
InformationofTop5suppliersoftheCompany
| S/N | Nameofsupplier | Purchaseamount(Rmb) | Proportionintotalannualpurchases |
| 1 | First | 460,689,750.42 | 9.62% |
| 2 | Second | 290,238,365.78 | 6.06% |
| 3 | Third | 166,559,747.13 | 3.48% |
| 4 | Fourth | 88,601,159.02 | 1.85% |
| 5 | Fifth | 75,377,967.42 | 1.57% |
| Total | -- | 1,081,466,989.77 | 22.59% |
Otherdescriptionsofmajorsupplier?Applicable√Notapplicable
3.Cost
Unit:yuan
| 2022 | 2021 | Year-on-yearincrease/decrease | Descriptionofsignificantchanges | |
| Sellingexpenses | 2,050,176,407.46 | 1,989,167,789.56 | 3.07% | Nomajorchanges |
| Administrativeexpenses | 633,614,634.95 | 454,389,948.90 | 39.44% | Resultingmainlyfrom1.theincreaseinemployeecompensation;2.theadditionofotheradministrativeexpensesoftheacquiredcompany;3.increaseinamortizationduetotheassetvaluationappreciationoftheacquiredcompany |
| Financialexpenses | (122,574,572.07) | (107,499,361.11) | 14.02% | Nomajorchanges |
| R&Dexpenses | 487,583,652.11 | 298,162,366.16 | 63.53% | ResultingmainlyfromtheincreaseinR&Demployeecompensation,investmentinR&DmaterialsandtheadditionofR&Dexpensesoftheacquiredcompany |
TheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.Compositionofsellingexpenses:
| Sellingexpenses | 2022 | 2021 | Year-on-yearincrease/decrease | Descriptionofsignificantchanges |
| Employeecompensation | 649,605,092.33 | 535,320,245.23 | 21.35% | Nomajorchanges |
| Travelexpenses | 12,266,843.44 | 14,589,718.50 | -15.92% | Nomajorchanges |
| Officecommunicationcosts | 17,665,180.74 | 12,577,824.48 | 40.45% | Resultingmainlyfromtheincreaseinnetworkservicefees |
| Salescommission | 213,988,639.15 | 222,716,753.83 | -3.92% | Nomajorchanges |
| Insurancepremiums | 5,076,079.44 | 5,302,498.97 | -4.27% | Nomajorchanges |
| Depreciationandamortization | 82,408,480.44 | 52,193,907.26 | 57.89% | Resultingmainlyfromtheincreaseinrenovationlossesduetoupgradesinhealthyconsumergoodsstores |
| Advertisingandpromotionexpenses | 600,156,113.14 | 692,445,882.66 | -13.33% | Nomajorchanges |
| Leaseandpropertymanagementexpenses | 152,186,000.56 | 152,728,211.40 | -0.36% | Nomajorchanges |
| Materialconsumption | 29,027,854.76 | 5,212,855.45 | 456.85% | Resultingmainlyfromtheincreaseintheconsumptionofauxiliarymaterials |
| Water/electricityfee | 12,817,521.54 | 11,632,395.90 | 10.19% | Nomajorchanges |
| Servicefees | 7,485,101.27 | 6,522,845.03 | 14.75% | Nomajorchanges |
| Depreciationof | 188,658,565.69 | 191,875,674.76 | -1.68% | Nomajorchanges |
| Right-of-useassets | ||||
| Others | 78,834,934.96 | 86,048,976.09 | -8.38% | Nomajorchanges |
| Total | 2,050,176,407.46 | 1,989,167,789.56 | 3.07% | Nomajorchanges |
4.Otherinformationrequiredbyindustrydisclosureguidelines
TheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.
(1)ProductioncapacityTheCompany'sproductioncapacity
| Currentreportingperiod | Sameperiodlastyear |
Morethan10%YoYchangeinproductioncapacityutilizationrate
√Yes?No
| Businesscategory | ProductCategory | Unit | Productioncapacity | Output | Productioncapabilityutilizationrate | Productioncapacity | Output | Productioncapabilityutilizationrate | Percentageofchangeinproductioncapacityutilizationrate | Changereasondescription |
| Medicalconsumables | Gauze | ton | 10,395.55 | 7,055.55 | 67.87% | 9486.75 | 6690.26 | 70.52% | -2.65% | Nomajorchanges |
| Cotton | ton | 2,745.60 | 2,378.60 | 86.63% | 2,745.60 | 2,197.40 | 80.03% | 6.60% | Nomajorchanges | |
| Mask | '0,000pieces | 726,709.71 | 590,693.27 | 81.28% | 467,322.00 | 366,435.00 | 78.41% | 2.87% | Nomajorchanges | |
| Protectiveclothing | '0,000suits | 4,992.00 | 4,966.00 | 99.48% | 1,386.00 | 1,367.08 | 98.63% | 0.85% | Nomajorchanges | |
| Surgicalgowns | '0,000suits | 1,664.00 | 1,448.15 | 87.03% | 1,850.00 | 1,764.00 | 95.35% | -8.32% | Nomajorchanges | |
| Purecottonspunlacenon-wovenfabric | ton | 54,329.97 | 29,922.41 | 55.08% | 48,018.43 | 25,602.88 | 53.32% | 1.76% | Nomajorchanges | |
| Healthyconsumergoods | Cottontissues | '0,000kits | 34,794.86 | 16,558.21 | 47.59% | 32,067.08 | 15,682.89 | 48.91% | -1.32% | Nomajorchanges |
| Sanitarypads | '0,000pieces | 50,079.74 | 44,857.87 | 89.57% | 50,079.74 | 40,403.97 | 80.68% | 8.89% | Nomajorchanges |
Note:Thecapacityandproductioninthistablearebasedonthestatisticsofself-producedcapacityandoutput,whiletheoutputintheSales-outputRatioTableincludesself-producedandpurchasedoutputs,wheretheoutputofsanitarypadsunder“healthyconsumergoods”islowerthanthatintheSales-outputRatioTable,whichismainlyduetotheoutsourcedprocessingofsomemodelsofsanitarypads.Additionally,theoutputof100%cottonspunlacenonwovenfabricsisthetotaloutput,includingtheoutput
fordirectexternalsalesandthatforself-consumption.Isthereoverseasproductioncapacity??Yes√No
(2)SalesmodelandchannelsSaleschannelsandactualoperationofproductsTheCompany'shealthyconsumergoodsareinvolvedinthetextileandapparelindustries.Thesaleschannelsforhealthyconsumergoodsincludeonlinesales,offlinestores,supermarkets,keyaccounts.
Unit:yuan
| Saleschannels | Operatingincome | Operatingcosts | Grossprofitmargin | Year-on-yearincrease/decreaseofoperatingincome(%) | Year-on-yearincrease/decreaseofoperatingcost(%) | Year-on-yearincrease/decreaseofgrossprofitmargin(%) |
| Onlinesales | 2,565,052,802.59 | 1,322,606,097.28 | 48.44% | 0.93% | -0.31% | 0.65% |
| Offlinestores | 1,184,292,470.95 | 467,012,543.64 | 60.57% | -4.10% | -6.83% | 1.16% |
| Supermarketchannels | 231,766,054.19 | 87,028,653.85 | 62.45% | 14.15% | 23.89% | -2.95% |
| Keyaccounts | 73,874,234.43 | 37,366,143.48 | 49.42% | -1.35% | -1.95% | 0.31% |
| Total | 4,054,985,562.16 | 1,914,013,438.24 | 52.80% | 0.02% | -1.15% | 0.56% |
Reasonforchanges:Nosignificantchange
(3)FranchisinganddistributionTheproportionoffranchisees'anddistributors'salesrevenuesexceeds30%?Yes√NoTop5franchisees
| S/N | Nameoffranchisee | Timeofcooperation | Arelatedpartyornot | Totalsales(yuan) | Leveloffranchisee |
| 1 | First | November9,2020 | No | 4,626,335.28 | Primary |
| 2 | Second | June10,2021 | No | 2,868,660.97 | Primary |
| 3 | Third | June12,2020 | No | 2,433,737.84 | Primary |
| 4 | Fourth | June11,2021 | No | 2,427,854.82 | Primary |
| 5 | Fifth | June26,2021 | No | 2,200,046.11 | Primary |
| Total | -- | -- | -- | 14,556,635.03 | -- |
Top5distributors
| S/N | Nameoffranchisee | Timeofcooperation | Arelatedpartyornot | Totalsales(yuan) |
(4)OnlinesalesTheproportionofonlinesalesinsalesrevenuesexceedsmorethan30%?Yes√NoIsthereaself-builtsalesplatform?
√Yes?No
| Operationstartingtime | January6,2014 |
| Numberofregisteredusers | 9,746,833 |
| Theaveragenumberofmonthlyactiveusers | 1,984,000 |
Doesitworkwithathird-partysalesplatform?
√Yes?No
Unit:yuan
| Nameofplatform | Transactionamountduringthereportingperiod | Returnrate |
| Taobao(healthyconsumergoods) | 1,287,888,521.62 | 2.12% |
OpeningorclosingonlinesaleschannelsbytheCompany?Applicable√NotapplicableDescriptionoftheimpactonthecurrentandfuturedevelopmentoftheCompany
(5)AgencyoperationDoesitadoptagencyoperation??Yes√No
(6)InventoryInventory
| Mainproducts | Inventoryturnoverindays | Inventoryamount | Inventoryaging | YoYincrease/decreaseininventorybalance | Reasons |
| Rawmaterialsandgoodsprocessedbythecommission | 387,842,479.28 | 142,197,768.93 | Resultingmainlyfromtheincreaseincottonandgoodsprocessedbythecommission | ||
| Workinprocess | 163,543,012.72 | (4,849,227.33) | Resultingmainlyfromthedecreaseinsemi-finishedproductsinprocess | ||
| Merchandiseinventory | 930,274,287.35 | (225,997,610.26) | Resultingmainlyfromthedecreaseinmerchandiseinventory | ||
| Semi-finishedproducts | 61,390,112.12 | 44,546,478.24 | Resultingmainlyfromtheincreaseininventoriesshippedbutnoteligibleforrevenue |
| shippedintransit | recognition | ||||
| Low-pricedandeasilywornarticles | 15,873,681.90 | 5,649,119.80 | Resultingmainlyfromtheincreaseinlow-consumableitems | ||
| Total | 108 | 1,558,923,573.37 | (38,453,470.62) | Resultingmainlyfromthedecreaseinmerchandiseinventory |
Provisionaccrualforinventorydepreciation
| Item | Beginningbalance | Amountincreasedincurrentperiod | Amountdecreasedincurrentperiod | ClosingBalance | ||
| Accrual | Others | Reversalorwrite-back | Others | |||
| Rawmaterials | 5,117,956.28 | 56,175,356.31 | 6,383,009.45 | 12,844,856.54 | 0.00 | 54,831,465.50 |
| Workinprocess | 4,599,718.11 | 14,094,137.36 | 299,165.66 | 9,808,171.36 | 0.00 | 9,184,849.77 |
| Merchandiseinventory | 100,692,345.17 | 284,993,058.41 | 9,585,323.75 | 136,478,084.23 | 112,262.36 | 258,680,380.74 |
| Semi-finishedproductsshippedintransit | 3,451,151.74 | 3,320,922.96 | 0.00 | 130,228.78 | ||
| Low-pricedandeasilywornarticles | 1,852.99 | 1,519,534.71 | 161,351.99 | 90,751.34 | 0.00 | 1,591,988.35 |
| Total | 110,411,872.55 | 356,782,086.79 | 19,880,002.59 | 162,542,786.43 | 112,262.36 | 324,418,913.14 |
InventoryinformationofendchannelssuchasfranchisesordistributorsThePurcottonfranchisees,sellingtheCompany'shealthyconsumergoods,had26stores.ItsbusinessmodelrequiresfranchiseestoberesponsibleforstoreconstructionanddailyoperationwhilePurcottonprovidesgoodsandsupplychainsupports.Afterthesalesofstores,Purcottonandthefranchiseesobtaintheirrespectiveprofitsthroughsharing;thefranchisestoreinventoryownershipbelongstoPurcotton.AsofDecember31,2022,theinventorybalancewere16.22millionyuan,or620,000yuanonaverageineachstore.
(7)BrandbuildingWhetherthecompanyisinvolvedintheproductionandsalesofbrandedclothing,apparelandhometextileproducts
√Yes?NoPrivatebrand
| Brandname | Trademarkname | Mainproducttypes | Features | Targetcustomers | Mainproductpricebands | Mainmarketterritory | Levelofcities |
| Purcotton | Purcotton | Cottontissues | Madeof100%high-qualitynaturalcottonwithoutfluorescentwhiteningagent;mildandnon-irritating;meetingthedailyneedsofconsumers | All-agecustomerbase | 5-30yuan/pack(100pieces) | Nationwide | Second-andthird-tiercitiesandabove |
| Purcotto | Nice | Sanitary | 100%cottonsurfacelayer | Thefemale | 1.99-3.99yuan/piece | Nation | Second- |
| n | Princess | pads | (surfacelayer,spacer,sanitarywingsurfacelayer) | populationatappropriateages | wide | andthird-tiercitiesandabove | |
| Purcotton | BBNice | Cottondiapers | 100%cottonsurfacelayer;uniqueinthemarket;madefromnaturalcotton;2mmultra-thincorewith28timesultra-highabsorptioncapacity | Parentalpopulation | 3.32-4.14yuan/piece | Nationwide | Second-andthird-tiercitiesandabove |
| Purcotton | Purcotton | Wettissues | 100%cottonmaterial;softandnon-slippery;gentleandnon-irritating | All-agecustomerbase | 20-40yuan/pack | Nationwide | Second-andthird-tiercitiesandabove |
| Purcotton | Purcotton | Babyproducts/clothing | 100%cottonmaterialwithoutfluorescentnorformaldehyde;theuniquegauzefabricprovidesmorecomfortablecare | Expectingmothers,newborns,babies,toddlers | 100-500yuan/piece | Nationwide | Second-andthird-tiercitiesandabove |
| Purcotton | Purcotton | Adultclothing/intimateapparel | 100%cottonmaterial;high-qualitycottonwithoutfluorescentnorformaldehyde;softtothetouch;theuniquegauzefabricstoprovidemorecomfortablecare | Adultclothing:adultmenandwomenofallages;Intimateapparel:allagegroups | Outwear:150-800yuan/piece;Homewear:200-800yuan/piece;Thermalunderwear:200-600yuan/piece;Underwear:48-128yuan/piece(pack);Socks:20-40yuan/pair | Nationwide | Second-andthird-tiercitiesandabove |
| Purcotton | Purcotton | Bedding,toiletries | 100%cottonmaterial;high-qualitycottonwithoutfluorescentnorformaldehyde;softtothetouch;theuniquegauzefabricstoprovidemorecomfortablecare | Expectingmothers,newborns,babies,toddlersandadultcustomerbase | Children'sbedding:268-1,698yuan/set;Toddlers'bedding:198-1,098yuan/setAdultbedding:268-3,198yuan/set;Bathroomproducts:38-398yuan/piece | Nationwide | Second-andthird-tiercitiesandabove |
Partnerbrands
| Brandname | Trademarkname | Mainproducttypes | Features | Targetcustomers | Mainproductpricebands | Mainmarketterritory | Levelofcities | Brandandtrademarkrightsownership | Partnername | Cooperationmode | Cooperationperiod |
Licensedbrand
| Brandname | Trademarkname | Mainproducttypes | Features | Targetcustomers | Mainproductpricebands | Mainmarketterritory | Levelofcities | Licensor | Licenseperiod | Exclusivelicenseornot |
| Purcotton,ChinaAerospace's“TwelveHeavenlyPalace” | Purcotton,ChinaAerospacemodelingfigures | Babyclothingandsupplies | Theproductismadefrom100%cottonmaterialanddesignedwithChinaAerospaceimage | Infantsandyoungchildrencustomergroup | 198-458yuan/piece | Nationwide | Second-andthird-tiercitiesandabove | PartyA:KoniCulture(Beijing)Co.,Ltd.PartyB:HangzhouQianxiCultureCommunicationCo.,Ltd. | 2021.9.15-2023.10.14 | No |
| Purcotton,Ultraman | Purcotton,Ultramanmodelingcharacters | Cottontissues,wettissues,bathtowels | Theproductismadefrom100%cottonmaterialanddesignedwithUltramancartoonimage | All-agecustomerbase | 21.8-298yuan/piece | Nationwide | Second-andthird-tiercitiesandabove | ShanghaiCharacterLicenseAdministrativeCo,.Ltd. | 2021.9.1-2024.1.31 | No |
MarketingandoperationofeachbrandduringthereportingperiodPleaserefertothe“1.Overview”in“IV.AnalysisofMainBusiness”of“Section3ManagementDiscussionandAnalysis”fordetails.Casesinvolvedintrademarkownershipdisputes?Applicable√Notapplicable
(8)OthersWhethertheCompanyisengagedinappareldesign-relatedbusiness
√Yes?No
| ThenumberoffashiondesignersintheCompany | 33 | Thenumberofcontractedfashiondesigners | 1 |
| Theoperationofthebuiltdesignerplatform | PLMsyetem,3DdesignplatformanddigitalcolortoolColoroCreativeIntelligence | ||
Didthecompanyholdanordermeeting??Yes√No
5.R&Dexpenses
√Applicable?Notapplicable
| NameofmajorR&Dprojects | Projectpurpose | Projectprogress | Objectives | ExpectedimpactsontheCompany |
| R&Dofhigh-elasticsunscreen“breathable”purecottonfabricsandproduct | Improvethedefectsoftraditionalsunscreenclothing,whichisstuffyandnotbreathable,andmakeitmorecomfortable. | Launched | Thepioneeredcottonsunscreenproducts,featuredwithasupersunscreeneffectofUPF50+,aremadeofabsorbentandbreathablecottonmaterial,whichisthinner,lighterandmorecomfortable. | Usecottontoreplacechemicalfibertoimprovethequalityofoutdoorclothing,leadingthetechnologicalupgradinganddevelopmentofcottonproducts |
| R&Dofmicroencapsulatedantibacterialcottonproductwithnatural“ice”feeling | Torelievethesummerheat,thecoolfabricsandproductsbringpeopleacoolwearingexperience. | Launched | Developsummercottonproductswithanaturalcoolfeelingandantibacterialfunction. |
DevelopfunctionalcottonoutdoorproductswithnewtechnologytoimproveproductperformanceandenhancethecompetitiveadvantageoftheCompany'sproducts
| Analysisofmicroplasticreleasefromtextilematerialsandinvestigationofitsimpacts | ReinforcePurcotton'sphilosophyofadvocatingsustainablebranding,andstrengthentheguidanceofconsumers'awarenessofdeplasticization. | Closed | Analyzethemicrofibermicroplasticsgeneratedfromusingsimilarcottonandchemicalfibermaterialsproductsthroughscientifictests,andreinforcePurcotton'sphilosophyofadvocatingsustainablebranding. | Strengthenbrandvalues,emphasizingPurcotton'sphilosophyofadvocatingsustainablebranding. |
| Carbonfootprintresearchandapplicationofcorecottonproducts | Assessthegreenhousegasemissionsofcorecottonproductsbyidentifyingandquantifyingtheenergyconsumption,materialconsumptionandwasteemissionsassociatedwiththeassessedobjects,providingabasisanddirectionforsustainableproductdevelopment. | Closed | Projectoutcomeswillproduceacarbonfootprintcertificationreportandlabelforeachproduct,andconsumersmaycheckthecarbonfootprintinformationinreal-timebyscanningtheQRcodetagontheproduct. | Thetotalamountofgreenhousegasemissionsofproductscanbequantitativelycalculatedthroughcarbonfootprintcertification,highlightingimprovementprioritiesintheproduct'sproductionprocess,providingbasisanddirectionforsustainableproductimprovement,andplayingapositiveroleinpromotingproductandbrandvalues. |
| Developmentofgingerandspicyfibercottonfabricswithantibacterialandthermalproperties | Developfallandwinterintimatethermalapparelproductstowithstandthecold | Launched | Whenselectingmaterialsforthefallandwinterthermalintimateapparelseries,cottonfabricsarechosenforcomfortable,healthy,andenvironmentallyfriendlywhilekeepingwarm. | Enhancetheaddedvalueofproducts,increasethevarietyoffallandwinterproducts,andimprovetheirmarketcompetitiveness. |
| Biodegradablemasks | Developenvironmentally-friendlybiodegradablemaskstoprotecttheearthandreduceenvironmentalpollution | Launched | Ensurethehighprotectiveperformanceofmaskswhilekeepingthebiodegradationrateofmasks≥95%; | EnhancetheCompany'scoretechnologies,drivegreen,resource-savingdevelopmentoftheCompany'scoreproductcategories,andmaketheCompany'smasksmoreinfluential |
| Ultra-breathableflatmasks | Developultra-breathableflatmaskstoenhancethecomfortofwearing | Launched | Ensurethehighprotectionperformanceofmaskswhileimprovingthebreathabilitytoenhancethecomfortofwearing | Expandmaskcategoriesandenhancetheirmarketcompetitiveness |
| Low-resistanceN95protective | DevelopN95protectivemaskswithlowbreathing | Launched | Ensurethehighprotectionperformanceofmaskswhile | Expandmaskcategoriesand |
| masks | resistancetoenhancethecomfortoflong-timewearing | improvingthebreathabilityofN95protectivemasksandenhancingthecomfortofwearing | enhancetheirmarketcompetitiveness | |
| Highmoisturepermeabilityprotectiveclothing | Develophighmoisturepermeabilityprotectiveclothingtoenhancethecomfortofwearing | R&D | Improvethemoisturepermeabilityofprotectiveclothingproductstoimprovethecomfortoflong-timewearing | UpgradetheCompany'scoretechnologieswhileenhancingthemarketcompetitivenessofprotectiveclothingproducts |
| Anti-bacterialandanti-viralsurgicalandN95protectivemasks | DevelopantibacterialandantiviralsurgicalandN95protectivemaskstoenhancethesafetyofprotectiveproductsfurther | Massproduction | Endowmaskproductswithantibacterialandantiviralcapabilitiestomakethemsafer | UpgradetheCompany'scoretechnologieswhileenhancingthemarketcompetitivenessofmaskproducts |
| R&Dandapplicationof3DperforatedPCmaterials | Develop3DperforatedPCmaterialsforuseinthesurfacelayerofsanitaryproductstoimprovetheircomfortandaesthetics | Massproduction | Improvetheaestheticsandcomfortofsanitaryproducts,anddiversifyproductcategories | Meetindustrydemand,enrichproductcategories,andenhancethecorecompetitivenessofPCmaterials |
| UpgradingofdryPCmaterialforthesurfacelayerofdiapers | DevelopdryerPCmaterialforthetoplayerofdiaperstoimprovethecomfortofwearing | Massproduction | UsePCmaterialforthetoplayerofdiaperstoenhancethecontinuousdrynessandcomfort | UpgradetheCompany'scoretechnologiesfurthertoenhancethemarketcompetitivenessofcottondiaperproducts |
| Researchonenvironmentalprotection,energysavingandemissionreductionofnon-wovenmaterials | Improvetheutilizationrateoftherecycledde-bleachingliquidandreduceenergyconsumption | R&D | Continuouslyimprovetherecyclingrateofde-bleachingliquid,lowerthetemperatureofde-bleachingtoreduceenergyconsumption | UpgradetheCompany'scoretechnologies,andpromotethegreen,environmentally-friendlyandresource-savingdevelopmentoftheCompany'scoreprocess |
| R&Dofmedicalsiliconetapes | Developatapewithmildadhesionforthecareofpeoplewithsensitiveskin | Massproduction | Achievepainlesspeeling,noresidualadhesiveandarepeatableadhesiveeffect | Expandtheapplicationofindependently-developedsiliconegeltechnologytoreplacethetraditionalacrylicsubmineraltapes,thusenhancingtheaddedvalueofproductsandimprovingprofitability |
| R&Dofhighlybreathablefoamdressingproducts | Developafoamdressingproductwithhighbreathabilitytoimproveproductperformance | Massproduction | Improveproductperformanceindicatorsandmarketsalesathomeandabroad | Improveproductmarketshareandincreasesales |
R&DpersonneloftheCompany
| 2022 | 2021 | Proportionofchange | |
| NumberofR&Dpersonnel(people) | 1,588 | 1,386 | 14.57% |
| ProportionofR&Dpersonnel | 10.63% | 11.47% | -0.84% |
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor | 413 | 429 | -3.73% |
| Master | 102 | 59 | 72.88% |
| AgecompositionofR&Dpersonnel | |||
| Under30 | 316 | 396 | -20.20% |
| 30-40 | 732 | 649 | 12.79% |
TheamountofR&Dinvestmentandtheproportionofoperatingincomeinthepastthreeyears
| 2022 | 2021 | 2020 | |
| R&Dinvestmentamount(RMB) | 487,583,652.11 | 298,162,366.16 | 411,383,173.80 |
| TheproportionofR&Dinvestmentinoperatingincome | 4.30% | 3.71% | 3.28% |
| CapitalizedamountofR&Dexpenditure(RMB) | 0.00 | 0.00 | 0.00 |
| TheproportionofcapitalizedR&DexpenditureinR&Dinvestment | 0.00% | 0.00% | 0.00% |
| TheproportionofcapitalizedR&Dexpenditureincurrentnetpro?t | 0.00% | 0.00% | 0.00% |
ReasonsforandeffectsofsignificantchangesinthecompositionoftheCompany'sR&Dpersonnel?Applicable√NotapplicableReasonsforsignificantchangesintheproportionoftotalR&Dinvestmentinoperatingincomecomparedtothepreviousyear?Applicable√NotapplicableReasonsforsignificantchangesincapitalizationrateofR&Dinvestmentanditsreasonableexplanation?Applicable√NotapplicableTheCompanyneedstocomplywiththe“MedicalDeviceBusiness”disclosurerequirementsintheNo.4GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-InformationDisclosurebyGrowthEnterprises.Informationonmedicaldeviceproducts
√Applicable?Notapplicable
(I)Statisticsonthenumberofregistrationcertificatesformedicaldevices
| Statisticsonthenumberofdomesticproductregistrationcertificate | ||||
| RegistrationCategories | Openingbalance | Numberofadditions | Numberoffailures | Closingbalance |
| ClassI | 83 | 27 | 0 | 110 |
| CategoryII | 110 | 16 | 0 | 126 |
| CategoryIII | 21 | 1 | 0 | 22 |
| Total | 214 | 44 | 0 | 258 |
| Statisticsonthenumberofforeignproductregistrationcertificate | ||||
| RegistrationCategories | Openingbalance | Numberofadditions | Numberoffailures | Closingbalance |
| Abroad | 42 | 19 | 0 | 61 |
Note:ThestatisticalcaliberofnewregistrationcertificatesisthatofnewcertificatesintheCompany'sconsolidatedfinancialstatementsattheendof2022.
(II)Newlyobtainedcertificatesofmedicaldevicesin2022
1.Domestic
| S/N | Nameofcertificates | Registrationcategories | Certificateowner | Productrecordnumber/registrationnumber | Forclinicalpurpose | Dateofissuance | Validity |
| 1 | Medicalisolationmasks | CategoryI | WinnerMedicalCo.,Ltd. | Guangdong&ShenzhenMedicalDeviceRecordNo.20220113 | Itisusedtoblockbodyfluids,bloodsplashesorspillsintheexaminationandtreatmentatmedicalinstitutions. | December20,2022 | / |
| 2 | Disposablevirussamplingtube | CategoryI | WinnerMedicalCo.,Ltd. | Guangdong&ShenzhenMedicalDeviceRecordNo.20221039 | Itisusedforsamplecollection,transportationandstorage. | July8,2022 | / |
| 3 | Medicalisolationshoecovers | CategoryI | WinnerMedicalCo.,Ltd. | Guangdong&ShenzhenMedicalDeviceRecordNo.20221491 | Itisusedbymedicalstaffinmedicalinstitutionstopreventexposuretopotentiallyinfectiouspatientblood,bodyfluids,secretions,etc.,andactsasabarrierandprotection. | October25,2022 | / |
| 4 | Siliconegelscartreatmentstrips | CategoryII | WinnerMedical(Huanggang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143585 | Itisusedasanaidinimprovingpathologicalskinscarsandpreventingtheformationofpathologicalskinscars,butnotforunhealedwounds | January5,2022 | January4,2027 |
| 5 | Siliconescargel | CategoryII | WinnerMedical(Huanggang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143749 | Itisusedasanaidinimprovingpathologicalskinscarsandpreventingtheformationofpathologicalskinscars,butnotforunhealedwounds | April15,2022 | April14,2027 |
| 6 | TubularBandage | CategoryI | WinnerMedical(Huanggang)Co.,Ltd. | HubeiHuanggangMedicalDeviceRecordNo.20220019 | Itprovidesbindingforcetowounddressingstoachievedressingandfixation. | April24,2022 | / |
| 7 | Cottontablets | CategoryI | WinnerMedical(Huanggang)Co.,Ltd. | HubeiHuanggangMedicalDeviceRecordNo.20220031 | Itisusedforskinandwoundcleaningtreatment. | June2,2022 | / |
| 8 | Cottonbandage | CategoryI | WinnerMedical(Huanggang)Co.,Ltd. | HubeiHuanggangMedicalDeviceRecordNo.20220035 | Itisusedtoprovidebindingforcetowounddressingstoachievedressingandfixation. | June15,2022 | / |
| 9 | Medical | Catego | WinnerMedical | Hubei | Itiswornonthehands | December5, | / |
| filmgloves | ryI | (Huanggang)Co.,Ltd. | HuanggangMedicalDeviceRecordNo.20220056 | ofdoctorstoexamineorpalpatepatients'conditions. | 2022 | ||
| 10 | Disposablesterile-carecatheterizationkit | CategoryII | WinnerMedical(Chongyang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143621 | Itisadisposableproductforstaffofmedicaldepartmentstoperformcatheterization. | January27,2022 | January26,2027 |
| 11 | Disposablecentralvenouscatheterpuncturecarekit | CategoryII | WinnerMedical(Chongyang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143842 | Itisusedfornursingdepartmentsinhealthcarefacilitiestopuncturecentralvenouscathetersplacedthroughperipheralveins. | July11,2022 | July10,2027 |
| 12 | Disposableisolationgowns | CategoryII | WinnerMedical(Chongyang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143837 | Itisadisposableproductforstaffinmedicalunitstoperformgeneralisolation. | July6,2022 | July5,2027 |
| 13 | Disposablesurgicalsheets | CategoryII | WinnerMedical(Chongyang)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143838 | Itisusedtocoverthesurfaceofthepatient'sbodytoreducethemigrationoftheinfectionsourcefromthenon-surgicalpartofthepatient'sskintothesurgicalpart,andpreventthepatient'spost-operativewoundfromgettinginfected,ortocovertheinstrumenttable,operatingtableanddisplayscreenintheoperatingroomtoavoidtheinfectionofthepatient'swoundcausedbythesurgeontouchingtheinstrumentsmentionedaboveduringsurgery. | July8,2022 | July7,2027 |
| 14 | Cottonbandage | CategoryI | WinnerMedical(Chongyang)Co.,Ltd. | HubeiXianningMedicalDeviceRecordNo.20220011 | Itprovidesbindingforcetowounddressingsorlimbstoachievedressingandfixation. | March31,2022 | / |
| 15 | Drainagebags | CategoryI | WinnerMedical(Chongyang)Co.,Ltd. | HubeiXianningMedicalDeviceRecordNo.20220069 | Itcollectsdisposabledrainageofbodilyfluids(blood,gastricfluid,etc.),secretions(sputum,flushingfluid,etc.)andhumanexcretionsfrompatientsinclinicaldepartmentsofhospitalsandduringoraftersurgery. | September9,2022 | / |
| 16 | Iodophordisinfectantpads | CategoryII | WinnerMedical(Jiayu)Co.,Ltd. | HubeiMedicalDeviceRegistration | Itisusedfordisinfectionofintactskinbeforeinjection | April1,2022 | March31,2027 |
| CertificateNo.20222143733 | andinfusion. | ||||||
| 17 | Iodophordisinfectantcottonballs | CategoryII | WinnerMedical(Jiayu)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143734 | Itisusedfordisinfectionofintactskinbeforeinjectionandinfusion. | April1,2022 | March31,2027 |
| 18 | Disposablesampler | CategoryI | WinnerMedical(Jiayu)Co.,Ltd. | HubeiXianningMedicalDeviceRecordNo.20220012 | Itisusedforsamplecollection,transportationandstorage. | April1,2022 | / |
| 19 | Hydrogelband-aid | CategoryI | WinnerMedical(Jiayu)Co.,Ltd. | HubeiXianningMedicalDeviceRecordNo.20220023 | Itisusedforfirstaidandtemporarydressingofminorwounds,abrasions,cutsandothersuperficialwounds. | April22,2022 | / |
| 20 | Stomaskinprotectors | CategoryI | WinnerMedical(Jiayu)Co.,Ltd. | HubeiXianningMedicalDeviceRecordNo.20220077 | Itisusedforstomacleaning,careandskincarearoundthestoma. | October31,2022 | / |
| 21 | Medicalisolationshoecovers | CategoryI | WinnerMedical(Jingmen)Co.,Ltd. | HubeiJingmenMedicalDeviceRecordNo.20220047 | Itisusedbymedicalstaffinmedicalinstitutionstopreventexposuretopotentiallyinfectiouspatientblood,bodyfluids,secretions,etc.,andactasabarrierandprotection. | March23,2022 | / |
| 22 | Medicalsurgicalmasks | CategoryII | WinnerMedical(Tianmen)Co.,Ltd. | HubeiMedicalDeviceRegistrationCertificateNo.20222143862 | Itisusedforthebasicprotectionofmedicalstafforrelevantpersonnelandagainstthetransmissionofbodyfluidsandsplashesduringinvasiveoperations. | July26,2022 | July25,2027 |
| 23 | Cottontablets | CategoryI | WinnerMedical(Wuhan)Co.,Ltd. | HubeiWuhanMedicalDeviceRecordNo.20220254 | Itisusedforskinandwoundcleaningtreatment. | May5,2022 | / |
| 24 | Disposablesterile-careinsulinsyringe | CategoryIII | WinnerMedical(Hunan)Co.,Ltd. | NationalMedicalDeviceRegistrationCertificateNo.20223140827 | Thisproductappliestohumaninjectionafteraspirationofinsulin. | June28,2022 | June27,2027 |
| 25 | Disposablesterile-careflushers | CategoryII | WinnerMedical(Hunan)Co.,Ltd. | HunanMedicalDeviceRegistrationCertificateNo.20222140570 | ItappliestotheclinicalENTforflushing. | April2,2022 | April1,2027 |
| 26 | Disposablesterile-caresamplingswabs | CategoryII | WinnerMedical(Hunan)Co.,Ltd. | HunanMedicalDeviceRegistrationCertificateNo.20222221527 | Itisusedfortakingbiologicalsamplesfromnaturalcavitiesofhumanbody,suchasnasalcavity,oralcavity,throat,vaginaandurethra. | August5,2022 | August4,2027 |
| 27 | Disposableinertgas- | CategoryII | WinnerMedical(Hunan)Co.,Ltd. | HunanMedicalDevice | Itisusedalongwithdisposableintravenous | September30,2022 | September29,2027 |
| protectedbloodcollectiontubes | RegistrationCertificateNo.20222221843 | bloodcollectionneedles,applicabletotheclinicalcollectionofbloodsamplesinmedicalinstitutions. | ||||||
| 28 | Disposablenitrogen-protectedbloodcollectiontube | CategoryII | WinnerMedical(Hunan)Co.,Ltd. | HunanMedicalDeviceRegistrationCertificateNo.20222221844 | Itisusedalongwithdisposableintravenousbloodcollectionneedles,applicabletotheclinicalcollectionofbloodsamplesinmedicalinstitutions. | September30,2022 | September29,2027 | |
| 29 | Circumcisionrings | CategoryI | WinnerMedical(Hunan)Co.,Ltd. | HunanChangdeMedicalDeviceRecordNo.20220097 | Itisusedforthecircumcisionofthepenileforeskin. | December30,2022 | / | |
| 30 | Siliconeadhesivedressing | CategoryII | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangMedicalDeviceRegistrationCertificateNo.20222140282 | Itisusedwithabsorbentdressingsforexudativewoundsonthebodysurface. | June9,2022 | June8,2027 | |
| 31 | Hydrocolloidpolyurethanefoamdressing | CategoryII | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangMedicalDeviceRegistrationCertificateNo.20222140351 | Itisusedforcoveringwoundsonthebodysurface,andabsorbingexudatefromnon-chronicwounds. | July29,2022 | July28,2027 | |
| 32 | Infantandchildumbilicalprotectionpatch | CategoryII | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangMedicalDeviceRegistrationCertificateNo.20222140482 | Itisusedtoprotectandcareforthetraumaticareaoftheumbilicalcordofinfantsandchildren. | December14,2022 | December13,2027 | |
| 33 | Stomabelt | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220052 | Itisusedforstomacleaning,careandcollectionofexcretions,andskincarearoundthestoma. | July15,2022 | / | |
| 34 | Medicalstretchmeshhat | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220061 | Itisusedtoprovidebindingforcetowounddressingsorlimbstoachievedressingandfixation. | November1,2022 | / | |
| 35 | Firstaidblanket | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220062 | Itisusedtowrapthelimbsofinjuredpersonsinthefieldtokeepwarmorinsulateheat. | November1,2022 | / | |
| 36 | Dressingshears | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220063 | Itisusedforshearinginstruments. | November1,2022 | / | |
| 37 | Medicalexaminationgloves | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220064 | Doctorswearitonthehandsorfingerstoexamineorpalpatepatients'conditions. | November1,2022 | / | |
| 38 | Disposabledressingforceps | CategoryI | ZhejiangLongtermMedicalTechnologyCo., | ZhejiangHuzhouMedical | Itisusedforclampinginstrumentsanddressings. | November1,2022 | / | |
| Ltd. | DeviceRecordNo.20220065 | ||||||
| 39 | Medicalicebags | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220066 | Itisusedforlocalcoolingforfeverpatients.Itisonlyusedforcompleteskinonbodysurface. | November1,2022 | / |
| 40 | Fracturefixationsplints | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220067 | Itisusedforexternalfixationoffractureorsofttissueinjury. | November1,2022 | / |
| 41 | Firstaidkit | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220077 | Itisusedforthesimpletreatmentofaccidents. | December8,2022 | / |
| 42 | Waterproofband-aid | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220033 | Itisusedforfirstaidandtemporarydressingofminorwounds,abrasions,cutsandothersuperficialwounds. | May7,2022 | / |
| 43 | Breathableband-aid | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220031 | Itisusedforfirstaidandtemporarydressingofminorwounds,abrasions,cutsandothersuperficialwounds. | April29,2022 | / |
| 44 | Self-adhesivesiliconetapes | CategoryI | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | ZhejiangHuzhouMedicalDeviceRecordNo.20220027 | Itisusedtoaffixdressingstowoundsorfixothermedicaldevicestospecificbodyparts. | April19,2022 | / |
2.Abroad
| Region | S/N | CertificateNo | Nameofcertificates | Registrationcategories | Certificateowner | Product | Dateofissuance | Validity |
| TheUnitedKingdom | 1 | 2022060901266050 | RegistrationConfirmationLetter | IIa | WinnerMedicalCo.,Ltd. | Syntheticnon-wovenfabricswiththreads | June9,2022 | / |
| TheUnitedKingdom | 2 | 2022102101281600 | RegistrationConfirmationLetter | IIb | WinnerMedicalCo.,Ltd. | Superabsorbentandhydrocolloiddressingwithactivatedcarbon | October21,2022 | / |
| Malaysia | 3 | GC2468022-94818 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | FoamDressing | June17,2022 | June16,2027 |
| Malaysia | 4 | GC4381322-96394 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | SiliconeWoundContactLayer | June17,2022 | June16,2027 |
| Malaysia | 5 | GC7992122-96394 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | ActivatedCharcoalSuperabsorbentdressing | June20,2022 | June19,2027 |
| Malaysia | 6 | GC8284722-96392 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | HydrocolloidDressing | June17,2022 | June16,2027 |
| Malaysia | 7 | GC8135122-97997 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Siliconefoamdressing | July18,2022 | July17,2027 |
| Malaysia | 8 | GC8985822-98783 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Superabsorbentdressing | July22,2022 | July21,2027 |
| Malaysia | 9 | GC9180022-98783 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Siliconesuperabsorbentdressing | July22,2022 | July21,2027 |
| Malaysia | 10 | GC7893622-101503 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Alginatedressing | August11,2022 | August10,2027 |
| Malaysia | 11 | GA5356322-97346 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | WoundDressing | July18,2022 | July17,2027 |
| Malaysia | 12 | GA5585622-98539 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Siliconescarrepairsheet | July27,2022 | July26,2027 |
| Malaysia | 13 | GA10116322-97480 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-SterileSurgicalMask | July18,2022 | July17,2027 |
| Malaysia | 14 | GA3707122-97402 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileBandageandTapeProducts | July18,2022 | July17,2027 |
(Continued)
| Region | S/N | CertificateNo. | Nameofcertificates | Registrationcategories | Certificateowner | Product | Dateofissuance | Validity |
| Malaysia | 15 | GA4150922-100539 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | SterileGauzeProduct | August11,2022 | August10,2027 |
| Malaysia | 16 | GA4877222-102575 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | SterileCottonBall | August29,2022 | August28,2027 |
| Malaysia | 17 | GB8845922-104134 | MDACertification | ClassB | WinnerMedicalCo.,Ltd. | SterileGauzeProductwithX-rayDetectableElement | September19,2022 | September18,2027 |
| Malaysia | 18 | GA4994122-103643 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileGauzeProduct | September15,2022 | September14,2027 |
| Malaysia | 19 | GA3803522-103533 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileCottonProducts | September15,2022 | September14,2027 |
| Malaysia | 20 | GA2282022-106328 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileProcedureMaskLevel1 | October25,2022 | October24,2027 |
| Malaysia | 21 | GA8656722-107753 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileProcedureMaskTypeII | November8,2022 | November7,2027 |
| Malaysia | 22 | GA6558622-111080 | MDACertification | ClassA | WinnerMedicalCo.,Ltd. | Non-sterileCottonApplicator | December13,2022 | December12,2027 |
| Thailand | 23 | 65-2-3-2-0012558 | TFDACertification | Class1 | WinnerMedicalCo.,Ltd. | Sterilescartreatmentstrips | August18,2022 | August17,2027 |
| Thailand | 24 | 65-2-3-2-0017301 | TFDACertification | Class1 | WinnerMedicalCo.,Ltd. | Non-sterilehydrocolloidband-aids | November22,2022 | November21,2027 |
| Australia | 25 | 387962 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | Foamdressing | May4,2022 | May26,2024 |
| Australia | 26 | 387963 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | SiliconeFoamDressing | May4,2022 | May26,2024 |
| Australia | 27 | 387964 | ARTGCertificate | ClassIib | WinnerMedicalCo.,Ltd. | Silicagelsuperabsorbentpad | May4,2022 | May26,2024 |
| Australia | 28 | 387966 | ARTGCertificate | ClassIib | WinnerMedicalCo.,Ltd. | SuperabsorbentDressing | May4,2022 | May26,2024 |
| Australia | 29 | 387967 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | SiliconeWoundContactLayer | May4,2022 | May26,2024 |
(Continued)
| Region | S/N | CertificateNo. | Nameofcertificates | Registrationcategories | Certificateowner | Product | Dateofissuance | Validity |
| Australia | 30 | 388191 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | Hydrocolloiddressings | May9,2022 | May26,2024 |
| Australia | 31 | 387970 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | Superabsorbentpadwithactivatedcarbon | May4,2022 | May26,2024 |
| Australia | 32 | 387340 | ARTGCertificate | ClassI | WinnerMedicalCo.,Ltd. | Siliconetapes | April21,2022 | / |
| Australia | 33 | 387291 | ARTGCertificate | ClassI | WinnerMedicalCo.,Ltd. | Scartreatmentstrips | April20,2022 | / |
| Australia | 34 | 391592 | ARTGCertificate | ClassI | WinnerMedicalCo.,Ltd. | Wounddressing(non-sterile) | June30,2022 | / |
| Australia | 35 | 388016 | ARTGCertificate | ClassIs | WinnerMedicalCo.,Ltd. | Wounddressing(sterile) | May5,2022 | May26,2024 |
| Australia | 36 | 387969 | ARTGCertificate | ClassIIb | WinnerMedicalCo.,Ltd. | Alginatedressings | May4,2022 | May26,2024 |
| SaudiArabia | 37 | LR-20227-C-1258--SFDA-3794 | NotificationofLow-RiskMedicalDeviceRegistration | ClassI | WinnerMedicalCo.,Ltd. | Siliconetape | July19,2022 | July18,2023 |
| SaudiArabia | 38 | LR-20227-C-1258--SFDA-3741 | NotificationofLow-RiskMedicalDeviceRegistration | ClassI | WinnerMedicalCo.,Ltd. | AdhesiveRemoverpad | July17,2022 | July16,2023 |
| SaudiArabia | 39 | LR-20227-C-1258--SFDA-3991 | NotificationofLow-RiskMedicalDeviceRegistration | ClassI | WinnerMedicalCo.,Ltd. | Siliconescarrepairsheet | July26,2022 | July25,2023 |
| SaudiArabia | 40 | LR-20227-C-1258--SFDA-3982 | NotificationofLow-RiskMedicalDeviceRegistration | ClassI | WinnerMedicalCo.,Ltd. | SkinProtectiveBarrier | July26,2022 | July25,2023 |
| SaudiArabia | 41 | LR-20227-C-1258--SFDA-4060 | NotificationofLow-RiskMedicalDeviceRegistration | ClassI | WinnerMedicalCo.,Ltd. | hydrogelwounddressing | July27,2022 | July26,2023 |
| TheUnitedStates | 42 | K211571 | 510K | II | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | Longtermfoamdressingkit | May3,2022 | / |
6.Cashflow
Unit:yuan
| Item | 2022 | 2021 | Year-on-yearincrease/decrease |
| Subtotalofcashinflowfromoperatingactivities | 12,542,790,330.22 | 8,810,925,953.61 | 42.35% |
| Subtotalofcashoutflowfromoperatingactivities | 9,559,318,099.95 | 7,939,236,051.68 | 20.41% |
| Netcashflowfromoperatingactivities | 2,983,472,230.27 | 871,689,901.93 | 242.26% |
| Subtotalofcashinflowfrominvestmentactivities | 8,238,580,617.85 | 7,465,119,663.87 | 10.36% |
| Subtotalofcashoutflowfrominvestmentactivities | 12,056,695,936.67 | 6,986,313,228.36 | 72.58% |
| Netcashflowfrominvestingactivities | (3,818,115,318.82) | 478,806,435.51 | -897.42% |
| Subtotalofcashinflowfromfinancialactivities | 2,276,661,290.38 | 100.00% | |
| Subtotalofcashoutflowfromfinancialactivities | 1,159,153,982.55 | 1,409,637,239.29 | -17.77% |
| Netcashflowfromfinancingactivities | 1,117,507,307.83 | (1,409,637,239.29) | -179.28% |
| Netincreaseincashandcashequivalents | 282,209,696.13 | (61,122,432.34) | 561.71% |
Explanationofthemaininfluencingfactorsofsignificantchangesonayear-on-yearbasisinrelevantdata
√Applicable?Notapplicable
1.Theincreaseincashinflowandoutflowfromoperatingactivitiesandnetamountwasmainlyduetotheriseinthe
Company'sperformanceduringthereportingperiod,theadoptionofacreditpolicyofprepaymentforinfectionprotectionproductsandtheextensionofthepaymentperiodforexternalpurchases.
2.Thedecreaseincashinflowfrominvestingactivitieswasmainlyduetothedecreaseinfinancialproductsredeemedduringthereportingperiod;andthedecreaseinnetcashflowfrominvestingactivitieswasmainlyduetotheacquisitionofLongtermMedical,WinnerGuilin,WinnerMedical(Hunan)andJunjianMedicalduringthereportingperiod.
3.Theincreaseinnetcashandcashequivalentswasmainlyduetoincreasednetcashflowfromoperatingactivities.
ExplanationofthereasonforthesignificantdifferencebetweentheCompany'snetcashflowgeneratedfromoperatingactivitiesduringthereportingperiodandthenetprofitinthecurrentyear?Applicable√Notapplicable
V.Non-mainoperations
√Applicable?Notapplicable
Unit:yuan
| Amount | Proportionintotalprofits | Formationreasons | Isitsustainable | |
| Investmentincome | 51,470,767.16 | 2.68% | Itismainlyduetothegainonthematurityoffinancialproductsandtherecognitionofinvestmentincomefromjointventures. | InvestmentincomefromjointventuresYes,othersNo |
| Pro?t/losfromchangesinfairvalue | 32,148,876.44 | 1.67% | Itismainlyduetothechangesinfairvalueoffinancialproducts(suchasstructureddeposits). | No |
| Impairmentofassets | (362,869,340.23) | -18.90% | Itismainlyduetotheprovisionforimpairmentofinventoriesandfixedassets. | No |
| Non-operatingincome | 10,569,559.38 | 0.55% | Itismainlyduetoreceivinggovernmentsubsidiesunrelatedtooperatingactivities. | No |
| Non-operatingexpenses | 67,613,275.63 | 3.52% | Itismainlyduetothelossesonthescrappingofnon-currentassets. | No |
| CreditimpairmentLoss | (63,943,322.52) | -3.33% | Itismainlyduetotheexpectedcreditlossesontheaccrualofaccountsreceivableandotherreceivables. | No |
| Gainsfromassetdisposal | 3,726,204.37 | 0.19% | Itismainlyduetothelossesondisposalofnon-currentassets. | No |
| Otherincomes | 84,373,262.34 | 4.40% | Itismainlyduetoreceivinggovernmentsubsidiesrelatedtooperatingactivities. | No |
VI.Analysisofassetsandliabilities
1.Majorchangesinassetcomposition
Unit:yuan
| Endof2022 | Early2022 | Increase/decreaseinproportions | Descriptionofsignificantchanges |
Amount
| Amount | Theproportionintotalassets | Amount | Theproportionintotalassets | |||
| Cashandcashequivalents | 4,526,877,578.90 | 24.82% | 4,273,938,326.82 | 32.22% | -7.40% | Itismainlyduetotheincreaseintotalassetsandthedecreaseintheproportionofmonetaryfunds. |
| Accountsreceivable | 932,642,061.04 | 5.11% | 775,546,589.42 | 5.85% | -0.74% | Nomajorchanges |
| Inventory | 1,558,923,573.37 | 8.55% | 1,597,377,043.99 | 12.04% | -3.49% | Itismainlyduetotheincreaseintotalassetsandthedecreaseintheproportionofinventories. |
| Investmentrealestates | 8,747,014.25 | 0.05% | 0.05% | Nomajorchanges | ||
| Long-termequityinvestment | 21,747,635.99 | 0.12% | 16,949,801.24 | 0.13% | -0.01% | Nomajorchanges |
(Continued)
| Endof2022 | Early2022 | Increase/decreaseinproportions | Descriptionofsignificantchanges | |||
| Amount | Theproportionintotalassets | Amount | Theproportionintotalassets | |||
| Fixedassets | 2,312,982,598.88 | 12.68% | 1,477,320,848.63 | 11.14% | 1.54% | Itismainlyduetotheincreaseinnewlyacquiredcompanies. |
| Constructioninprogress | 765,009,910.63 | 4.19% | 216,096,622.30 | 1.63% | 2.56% | Itismainlyduetoincreasedinfrastructureprojectsanduninstalledequipmentinthereportingperiod. |
| Right-of-useassets | 472,356,125.64 | 2.59% | 531,735,443.44 | 4.01% | -1.42% | Nomajorchanges |
| Short-termloans | 2,295,218,930.85 | 12.58% | 12.58% | Itismainlyduetotheincreaseinborrowings | ||
| Contractliabilities | 566,819,254.08 | 3.11% | 341,175,665.42 | 2.57% | 0.54% | Itismainlyduetotheincreasedconsiderationreceivedinadvancefromcustomers. |
| Long-termloans | 0.00% | |||||
| Leaseliabilities | 326,459,697.90 | 1.79% | 381,808,925.09 | 2.88% | -1.09% | Nomajorchanges |
| Tradablefinancialassets | 4,378,789,960.23 | 24.01% | 3,130,529,709.10 | 23.60% | 0.41% | Itismainlyduetotheincreasedpurchaseofstructureddepositsandotherfinancialproducts. |
| Notesreceivable | 51,001,784.57 | 0.28% | 0.28% | Itismainlyduetotheincreaseduseofbillstosettlepaymentsforgoods. | ||
| Amountsreceivablefinancing | 93,093,113.79 | 0.51% | 9,940,272.21 | 0.07% | 0.44% | Itismainlyduetotheincreaseduseofbillstosettlepaymentsforgoods. |
| Advancestosuppliers | 229,225,273.09 | 1.26% | 110,462,594.38 | 0.83% | 0.43% | Itismainlyduetotheincreaseinprepaymentformaterialpurchases. |
| Othernon-currentfinancialassets | 40,000,000.00 | 0.22% | 0.22% | Itismainlyduetothepurchaseoflong-termfinancialassets. | ||
| Intangibleassets | 1,033,109,803.45 | 5.66% | 265,700,890.65 | 2.00% | 3.66% | Itismainlyduetotheincreaseinnewlyacquiredcompanies. |
| Goodwill | 1,044,674,814.01 | 5.73% | 5.73% | Itismainlyduetotheincreaseinnewlyacquiredcompanies. | ||
| Deferredincometaxassets | 196,993,751.80 | 1.08% | 122,716,382.99 | 0.93% | 0.15% | Itismainlyduetotheincreaseindeferredincometaxassetsrecognizedforassetimpairment. |
| Notespayable | 24,760,000.00 | 0.14% | 36,200,130.04 | 0.27% | -0.13% | Itismainlyduetothedecreaseinbankers'acceptancespayable. |
| Accountspayable | 1,119,574,518.58 | 6.14% | 734,521,490.60 | 5.54% | 0.60% | Itismainlyduetotheincreaseintradepayablestosuppliers. |
| Payrollpayable | 312,450,241.38 | 1.71% | 184,681,184.52 | 1.39% | 0.32% | Itismainlyduetotheincreasednumberofemployeesandcompensation. | |
| Taxespayable | 322,255,874.61 | 1.77% | 93,859,069.68 | 0.71% | 1.06% | Itismainlyduetoincreasedtaxpayableandbetterperformanceduringthecurrentreportingperiod. | |
| Othercurrentliabilities | 59,604,591.85 | 0.33% | 24,165,400.50 | 0.18% | 0.15% | Itismainlyduetothenon-derecognitionofoutstandingendorsednotesreceivableandtheincreasedsalestaxtobetransferred. | |
| Long-termpayrollpayable | 8,579,637.94 | 0.05% | 0.05% | Itismainlyduetotheincreaseinnewlyacquiredcompanies. | |||
| Deferredincometaxliabilities | 133,677,102.81 | 0.73% | 13,337,159.68 | 0.10% | 0.63% | Itismainlyduetotheincreaseindeferredincometaxliabilitiescorrespondingtotheincreaseinvaluationincrementofassetsofthenewlyacquiredcompanies. | |
| Less:treasurystock | 500,082,734.11 | 2.74% | 257,992,366.68 | 1.94% | 0.80% | Itismainlyduetosharerepurchase. | |
| Minorityequity | 478,161,435.74 | 2.62% | 12,196,045.94 | 0.09% | 2.53% | Itismainlyduetotheincreaseinnewlyacquiredcompanies. | |
Highpercentageofforeignassets?Applicable√Notapplicable
2.Assetsandliabilitiesmeasuredatfairvalue
√Applicable?Notapplicable
Unit:yuan
| Item | Openingbalance | Gain/lossfromchangesinfairvaluefortheperiod | Accumulatedfairvaluechangesincludedinequity | Impairmentintheaccrualofthecurrentperiod | Purchaseamountduringthereportingperiod | Salesamountduringthereportingperiod | Otherchanges | Closingbalance |
| Financialassets | ||||||||
| 1.Tradablefinancialassets(excludingderivativefinancialassets) | 3,130,529,709.10 | 32,148,876.44 | 8,728,645,000.00 | 7,447,646,820.00 | 4,378,789,960.23 | |||
| Financialassetssubtotal | 3,130,529,709.10 | 32,148,876.44 | 8,728,645,000.00 | 7,447,646,820.00 | 4,378,789,960.23 | |||
| Totaloftheabove | 3,130,529,709.10 | 32,148,876.44 | 8,728,645,000.00 | 7,447,646,820.00 | 4,378,789,960.23 |
| Financialliabilities | 0.00 | 0.00 |
OtherchangesWhethertherewereanysignificantchangesinthemeasurementattributesoftheCompany'sprimaryassetsduringthereportingperiod?Yes√No
3.RestrictedrightstoassetsasoftheendofthereportingperiodFordetails,seeSectionX.FinancialStatements“\7.Notestoconsolidatedfinancialstatements\81.AssetswithRestrictedOwnershiporUseRights”.VII.Analysisofinvestment
1.Overallsituation
√Applicable?Notapplicable
| Investmentamountinthereportingperiod(yuan) | Investmentamountinthesameperiodofthepreviousyear(yuan) | Changepercentage |
| 12,418,231,649.20 | 7,201,614,958.67 | 72.44% |
2.Significantequityinvestmentsacquiredduringthereportingperiod
√Applicable?Notapplicable
Unit:yuan
| Nameoftheinvestedcompany | Principaloperation | Investmentmethod | Investmentamount | Shareholdingratio | Sourceoffunds | Partner | Investmentperiod | Producttype | Progressasofthebalancesheetdate | Estimatedincome | Currentinvestmentprofitandloss | Involvedinlitigation | Dateofdisclosure(ifany) | Disclosureindex(ifany) |
| LongtermMedical | Productionandsalesofmedicalconsumables | Acquisition | 727,540,000.00 | 55.00% | Self-ownedfunds | N/A | N/A | N/A | Completed | 0.00 | 70,390,069.32 | No | April11,2022 | CNINFO.com:AnnouncementontheAcquisitionof55%EquityInterestinLongtermMedical |
| WinnerGuilin | Rubberproductsindustry | Acquisition | 450,000,000.00 | 100.00% | Self-ownedfunds | N/A | N/A | N/A | Completed | 0.00 | 44,729,822.83 | No | June8,2022 | CNINFO.com:AnnouncementonAcquiring100%EquityInterestinWinnerGuilinLatexCo.,Ltd. |
| Winner | Product | Acq | 751,921,500.00 | 68.70 | Self- | N/A | N/A | N/A | Completed | 0.00 | 7,913,174.25 | No | May | CNINFO.c |
| Medical(Hunan) | ionandsalesofmedicalconsumables | uisition | % | ownedfunds | 18,2022 | om:AnnouncementontheAcquisitionofControllingInterestinWinnerMedical(Hunan)Co.,Ltd.andtheIncreaseinCapital | ||||||||
| Total | -- | -- | 1,929,461,500.00 | -- | -- | -- | -- | -- | -- | 0.00 | 33,033,066.40 | -- | -- | -- |
3.Significantnon-equityinvestmentsinprogressduringthereportingperiod
√Applicable?Notapplicable
Unit:yuan
| Projectname | Investmentmethod | Investmentinfixedassetsornot | Industriesinvolvedininvestmentprojects | Investmentamountinthecurrentreportingperiod | Cumulativeactualinvestmentamountasoftheendofthereportingperiod | Sourceoffunds | Projectprogress | Estimatedincome | Cumulativerealizedgainsasoftheendofthereportingperiod | Reasonsfornotmeetingthescheduledprogressandprojectedearnings | Dateofdisclosure(ifany) | Disclosureindex(ifany) |
| Advanceddressingproductionlineconstructionproject | Independent | Yes | Medicalconsumables | 83,746,816.88 | 115,730,519.32 | Proceeds | 53.37% | 0.00 | 0.00 | N/A | ||
| Marketingnetworkconstructionproject | Independent | Yes | Healthyconsumergoods | 89,944,628.53 | 308,325,953.01 | Proceeds | 49.89% | 0.00 | 0.00 | N/A | ||
| R&DCenterconstructionproject | Independent | Yes | Medicalconsumables+Healthyconsumergoods | 50,213,535.21 | 123,954,171.97 | Proceeds | 52.65% | 0.00 | 0.00 | N/A | ||
| Digitalmanagementsystemproject | Independent | Yes | Medicalconsumables+Healthyconsumergoods | 19,840,207.89 | 120,213,520.64 | Proceeds | 44.72% | 0.00 | 0.00 | N/A | ||
| WinnerIndustrialPark(Jiayu)Project | Independent | Yes | Medicalconsumables | 189,414,893.90 | 241,529,257.22 | Proceeds | 60.38% | 0.00 | 0.00 | N/A | ||
| PhaseIIExpansionProjectofWinnerMedicalWuhan | Independent | Yes | Medicalconsumables+Healthyconsumergoods | 319,243,764.12 | 526,086,950.57 | Proceeds | 87.68% | 0.00 | 0.00 | N/A | ||
| Total | -- | -- | -- | 752,403,846.53 | 1,435,840,372.73 | -- | -- | 0.00 | 0.00 | -- | -- | -- |
4.Investmentinfinancialassets
(1)Securitiesinvestment
√Applicable?Notapplicable
Unit:yuan
| Category | Code | Abbreviation | Initialinvestmentcost | Accountingmeasurementmode | Beginningbookvalue | Gain/lossfromchangesinfairvaluefortheperiod | Accumulatedfairvaluechangesincludedinequity | Purchaseamountduringthereportingperiod | Salesamountduringthereportingperiod | Profitorlossforthereportingperiod | Endingbookvalue | Accountingaccount | Sourceoffunds |
| Trustproducts | N/A | N/A | 1,330,000,000.00 | Fairvaluemeasurement | 1,345,833,430.82 | 11,258,920.46 | 1,440,000,000.00 | 1,430,000,000.00 | 22,354,653.22 | 1,351,258,920.46 | Tradablefinancialassets | Self-ownedfunds | |
| Others | N/A | N/A | 1,770,996,820.00 | Fairvaluemeasurement | 1,784,696,278.28 | 20,889,955.98 | 7,630,042,000.00 | 6,309,043,820.00 | 24,418,279.43 | 3,027,531,039.77 | Tradablefinancialassets | Owned+raisedfunds | |
| Funds | N/A | N/A | 0.00 | Fairvaluemeasurement | 40,000,000.00 | 40,000,000.00 | Othernon-currentfinancialassets | Self-ownedfunds | |||||
| Total | 3,100,996,820.00 | -- | 3,130,529,709.10 | 32,148,876.44 | 0.00 | 9,110,042,000.00 | 7,739,043,820.00 | 46,772,932.65 | 4,418,789,960.23 | -- | -- |
(2)Derivativesinvestment?Applicable√Notapplicable
1)Derivativeinvestmentsforhedgingpurposesduringthereportingperiod?Applicable√NotapplicableTherewerenoderivativeinvestmentsforhedgingpurposesduringthereportingperiod.
2)Derivativeinvestmentsforspeculativepurposesduringthereportingperiod?Applicable√NotapplicableTherewerenoderivativeinvestmentsforspeculativepurposesduringthereportingperiod.
5.Theuseofproceeds
√Applicable?Notapplicable
(1)Theoveralluseofproceeds
√Applicable?Notapplicable
Unit:'0,000yuan
| Year | Method | Totalamountofproceeds | Totalamountofproceedsusedduringthecurrentreportingperiod | Totalaccumulatedamountofproceedsusedduringthecurrentreportingperiod | Totalamountofproceedsforalterationpurposesduringthecurrentreportingperiod | Totalaccumulatedamountofproceedsforalterationpurposesduringthecurrentreportingperiod | Proportionoftotalamountofproceedsforalterationpurposesduringthecurrentreportingperiod | Totalamountofproceedsnotusedduringthecurrentreportingperiod | Usageandpurposesofproceedsnotusedduringthecurrentreportingperiod | Amountofproceedsthathavebeenidleformorethantwoyears |
| 2020 | IPO | 355,884.93 | 137,872.81 | 270,116.47 | 9,102.13 | 9,102.13 | 2.56% | 98,363.61 | Ofwhich:thebalanceofcashmanagementwas780.00millionyuan,andthebalancedepositedintheproceedsaccountwas203.6361yuan. | 0 |
| Total | -- | 355,884.93 | 137,872.81 | 270,116.47 | 9,102.13 | 9,102.13 | 2.56% | 98,363.61 | -- | 0 |
| Descriptionoftheoveralluseofproceeds | ||||||||||
| TheChinaSecuritiesRegulatoryCommission(CSRC)approvedthat,inits“CSRCLicense[2020]No.1822”document,theCompanymadeaninitialpublicofferingof50millionyuanordinaryshares(Ashares)atanofferpriceof74.30yuanpershare,andthetotalproceedsamountedto3,715.0000millionyuan.Afterdeductingissuancefeesof156.1507millionyuan(excludingtax),netproceedstotaled3,558.8493millionyuan.TheproceedsmentionedabovewereverifiedbyBDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLPwitha“CapitalVerificationReport”(XinKuaiShiBaoZi[2020]No.ZI10584).In2022,theCompanymobilized1.3787281billionyuanofproceeds,ofwhich:1.3787281billionyuanofproceedswereusedbythefundraisingprojects(including626.3243millionyuanforreplenishmentofworkingcapital).Bytheendof2022,theCompanymobilizedatotalof2.7011647billionyuanofproceeds,ofwhich:1.4358404billionyuanofproceedswereusedforfundraisingprojects(includingatotalof1.1019489billionyuanofproceedsinvestedinfund-raisingprojectsand333.8914millionyuanoffundspre-investedinfund-raisingprojectsbyreplacingself-financingfunds),andatotalof1.2653243billionyuanofidleproceedsforpermanentlyreplenishingtheworkingcapital. | ||||||||||
(2)Committedproceedsprojects
√Applicable?Notapplicable
Unit:'0,000yuan
| Committedinvestmentprojectsandinvestmentofover-raisedproceeds | Whethertheprojecthasbeenchanged(includingpartialchange) | Totalinvestmentincommittedproceeds | Adjustedtotalinvestment(1) | Investmentamountinthecurrentreportingperiod | Cumulativeinvestmentamountasoftheendofthereportingperiod(2) | Investmentprogressasoftheendofthereportingperiod(3)=(2)/(1) | Theprojectreachestheintendedusablestatusdate | Benefitsrealizedinthecurrentreportingperiod | Cumulativebenefitsrealizedasoftheendofthereportingperiod | Whetherprojectedbenefitsaremet | Whetherthereisasignificantchangeinprojectfeasibility |
| Committedinvestmentprojects | |||||||||||
| Advanceddressingproductionlineconstructionproject | No | 21,685.86 | 21,685.86 | 8,374.68 | 11,573.05 | 53.37% | September30,2024 | 0 | 0 | N/A | No |
| Marketingnetworkconstructionproject | Yes | 70,456.87 | 61,804.04 | 8,994.46 | 30,832.6 | 49.89% | September30,2024 | 0 | 0 | N/A | No |
| R&DCenterconstructionproject | No | 23,542.15 | 23,542.15 | 5,021.35 | 12,395.42 | 52.65% | September30,2024 | 0 | 0 | N/A | No |
| Digitalmanagementsystemproject | No | 26,881.05 | 26,881.05 | 1,984.02 | 12,021.35 | 44.72% | September30,2024 | 0 | 0 | N/A | No |
| Bolsterworkingcapital | No | 9,102.13 | 9,102.13 | 9,102.13 | 0 | 0 | N/A | No | |||
| Subtotalofcommittedinvestmentprojects | -- | 142,565.93 | 143,015.23 | 33,476.64 | 75,924.55 | -- | -- | 0 | 0 | -- | -- |
| Investmentofover-raisedproceeds | |||||||||||
| WinnerIndustrialPark(Jiayu)Project | No | 40,000 | 18,941.49 | 24,152.93 | 60.38% | June30,2023 | 0 | 0 | N/A | No | |
| PhaseIIExpansionProjectofWinnerMedicalWuhan | No | 60,000 | 31,924.38 | 52,608.70 | 87.68% | December31,2023 | 0 | 0 | N/A | No | |
| Bolsterworkingcapital(ifany) | -- | 117,430.3 | 53,530.3 | 117,430.3 | 100.00% | -- | -- | -- | -- | -- | |
| Subtotaluseofover-raisedproceeds | -- | 217,430.3 | 104,396.17 | 194,191.92 | -- | -- | -- | -- | |||
| Total | -- | 142,565.93 | 360,445.53 | 137,872.81 | 270,116.47 | -- | -- | 0 | 0 | -- | -- |
(Continued)
| Descriptionofandreasonsfornotmeetingthescheduledprogressorprojectedearningsbyprojects(includingthereasonsforselecting“Notapplicable”for“Whetherprojectedbenefitsaremet”) | N/A |
| Descriptionofsignificantchangesinprojectfeasibility | N/A |
| Amount,purposeandprogressofuseofover-raisedproceeds | Applicable |
| OnOctober12,2020,the13thmeetingoftheSecondBoardofDirectorsandtheseventhmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposalRegardingtheUseofSomeOver-raisedProceedsToPermanentlySupplementtheWorkingCapital”,andagreedthattheCompanycouldallocateRMB639millionoftheover-raisedproceedstosupplementtheworkingcapitalpermanently.TheFifthExtraordinaryGeneralMeetingof2020heldonOctober29,2020,consideredandapprovedtheproposal.AsofNovember2,2020,639millionyuanofover-raisedproceedswereusedforreplenishingtheworkingcapital.OnNovember27,2020,the15thmeetingoftheSecondBoardofDirectorsandthe9thmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposalRegardingtheUseofOver-raisedProceedsfortheInvestmentinWinnerIndustrialPark(Jiayu)Project”.Theproposalwasconsideredandapprovedbythe6thExtraordinaryGeneralMeetingofShareholdersin2020,heldonDecember15,2020.ThemainbodyoftheProposalisasfollows:TheCompanyplanstoallocateRMB400.0000millionoftheover-raisedproceedstotheinvestmentintheWinnerIndustrialPark(Jiayu)Project.ThetotalinvestmentinWinnerIndustrialPark(Jiayu)ProjectisestimatedatRMB900.0000million,andtheimplementingentityisWinnerMedical(Jiayu)Co.,Ltd.TheprojectislocatedinHubeiJiayuEconomicDevelopmentZone,adjacenttothePark's2ndRoadinthenorth,3rdRoadinthesouth,JiayuAvenueintheeast,andShijingpuRoadinthewest.Thetotallandareaisabout451mu.Theprojectreliesonindependentresearchanddevelopmentofpatentedtechnologyachievements,andbasedontheexistingadvantagesoftheCompanyintheindustry,considersnaturalcottonastheprimaryrawmaterialtoinnovateandimprovedegreasingandspunlacetechnology.Itadoptscomprehensiveuseofhigh-pressure“waterneedle”andotherhigh-efficiencyproductiontechnologies,andplanstobuildproductionprojectsaboutspunlace,washcare,wetwipes,medicalcotton/gauze/nonwovenfabrics,handsanitizerandotherproducts.AsofDecember31,2022,thetotalamountinvestedintheaboveprojectwas241.5293millionyuan.OnNovember27,2020,the15thmeetingoftheSecondBoardofDirectorsandthe9thmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposalRegardingtheUseofOver-raisedProceedsforthePhaseIIExpansionProjectofWinnerMedicalWuhan”.ThemainbodyoftheProposalisasfollows:TheCompanyplanstoallocateRMB600.0000millionoftheover-raisedproceedstotheinvestmentinthePhaseIIExpansionProjectofWinnerMedicalWuhan.ThetotalinvestmentinthePhaseIIExpansionProjectofWinnerMedicalWuhantotalsRMB1,500.0000million,andtheimplementingentityisWinnerMedical(Wuhan)Co.,Ltd.Theprojectincludesnon-wovencoilcenter,sterilizationprocessingcenter,domesticmedicalsalesandmarketingcenter,intelligentdistributioncenterofHubeiregionalheadquarters,regionalheadquartersinCentralChinaandthesecondR&DcenteroftheGroup,whicharefullyinvestedandindependentlyoperatedbytheCompany.Thankstotheprojectconstruction,theCompany'sproductioncapacityandmarketsharewillbeincreased,enablingittobecomeagloballeaderinoveralltechnicallevelandproductqualityscale.AsofDecember31,2022,thetotalamountinvestedintheaboveprojectwas526.0870millionyuan.TheCompanyheldthesixthmeetingofthethirdsessionoftheBoardofDirectorsandthefifthmeetingofthethirdsessionoftheBoardofSupervisorsonApril20,2022,andreviewedandapprovedthe“ProposalRegardingtheUseofSomeOver-raisedProceedstoSupplementtheWorkingCapitalPermanently”,andagreedthattheCompanycouldallocate494.19millionyuanoftheover-raisedproceedsandthecorrespondingcashproceedstopermanentlysupplementtheworkingcapital.The2021AnnualGeneralMeetingheldonMay13,2022consideredandapprovedtheproposal. | |
| Changeoflocationfortheimplementationoftheproceedsinvestmentproject | Applicable |
| Occurredinthepreviousyear | |
| OnNovember27,2020,the15thmeetingoftheSecondBoardofDirectorsandthe9thmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposalRegardingCapitalIncreaseinWhollyOwnedSubsidiarieswithSomeoftheProceeds,ChangestoImplementingEntityoftheFundraisingProjects,andAdditionofImplementationSitesofSomeFundraisingProjects”.ThemainbodyoftheProposalisasfollows:Tofurtherimprovetheproduction,managementefficiencyandcomprehensiveutilizationrateofresources,seizemarketdevelopmentopportunities,andbetterpromotetheimplementationoffundraisingprojects,theCompanyplanstousesomeoftheproceedstoincreasethecapitalofthewholly-ownedsubsidiariesandchangetheimplementingentityofthefundraisingprojects,andaddnewimplementationsitesforthefundraisingprojects.Wheretheoriginalimplementingentityof“TheR&DCenterConstructionProject”wasWinnerMedical(Wuhan)Co.,Ltd.Basedonthecorporatedevelopmentstrategiesandactualbusinessneeds,itisproposedtoaddWinnerMedicalCo.,Ltd.asthe |
| implementingentityof“R&DCenterConstructionProject”,andadd“WinnerIndustrialPark,No.660BulongRoad,LonghuaNewDistrict,ShenzhenCity”astheprojectimplementationlocationaccordingly. | |
| Adjustmentoftheimplementationmodeoftheproceedsinvestmentproject | Applicable |
| Occurredduringthereportingperiod | |
| TheCompanyheldthesixthmeetingofthethirdsessionoftheBoardofDirectorsandthefifthmeetingofthethirdsessionoftheBoardofSupervisorsonApril20,2022,andreviewedandapprovedthe“ProposalonAdjustingtheImplementationMode,ExtendingtheConstructionPeriodandPermanentlyBolsteringtheWorkingCapitalofSomeFundRaisingProjects”,whichbecameeffectiveaftertheconsiderationofthe2021AnnualGeneralMeetingofShareholdersheldonMay13,2022.Themaincontentsoftheproposalwereasfollows:Toquicklyrespondtomarketchangesandimprovetheutilizationefficiencyofproceeds,themarketingnetworkbuildingprojectincreasedtheinvestmentrelatedtoonlinemarketingofShenzhenPurcottonTechnologyCo.,Ltd.,awholly-ownedsubsidiary.Also,duetostrategicadjustments,themarketingnetworkbuildingprojectterminatedtheinvestmentrelatedtonetworkbuildingofShenzhenPureH2BTechnologyCo.,Ltd.,awholly-ownedsubsidiary. | |
| Pre-investmentandreplacementoftheproceedsinvestmentproject | Applicable |
| OnFebruary26,2021,the18thmeetingoftheSecondBoardofDirectorsandthe12thmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposaltoOpenBankAccountsandReplacetheSelf-financingFundsPre-investedinNewProjectswithExcessFundsRaised”,respectively,andagreedthattheCompanycouldreplacetheself-raisedfundspre-investedinthefundraisingprojectwith100.1742millionyuanofproceeds.TheCompany'sinvestmentintheprojectwasverifiedbyBDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLPwitha“SpecialAuditReportontheReplacementofProceedsbyWinnerMedicalCo.,Ltd.”(XinKuaiShiBaoZi[2021]No.ZI10031)issuedonFebruary23,2021.Amongthem:theactualinvestmentamountoftheCompany'sself-raisedfundspre-investedintheproceedsinvestmentprojectis100.1742millionyuan,ofwhich:85.8942millionyuanwasinvestedintheWuhanPhaseIIexpansionproject,and14.28millionyuanwasinvestedinWinnerIndustrialPark(Jiayu)Project.InFebruaryandMarch2021,theCompanytransferred14.28millionyuanand85.8942millionyuan,respectivelyfromthespecialaccountforproceedstoreplacetheself-raisedfundsthathadbeeninvestedinadvanceintheproceedsproject.OnOctober12,2020,the13thmeetingoftheSecondBoardofDirectorsandtheseventhmeetingoftheSecondBoardofSupervisorsoftheCompanyreviewedandapprovedthe“ProposalRegardingtheUseofProceedstoReplaceSelf-raisedFundsPre-investedintheFundraisingProject”,respectively,andagreedthattheCompanycouldreplacetheself-raisedfundspre-investedinthefundraisingprojectwith233.7173millionyuanofproceeds.TheCompany'sinvestmentintheprojectwasverifiedbyBDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLPwitha“SpecialAuditReportontheReplacementofProceedsbyWinnerMedicalCo.,Ltd.”(XinKuaiShiBaoZi[2020]No.ZI10635)issuedonOctober12,2020.Amongthem:theactualinvestmentamountoftheCompany'sself-raisedfundspre-investedintheproceedsinvestmentprojectis233.7173millionyuan,ofwhich:26.5062millionyuanwasinvestedinadvanceddressingproductionlineconstructionproject,110.0794millionyuanwasinvestedinmarketingnetworkbuildingproject,50.2174millionyuanwasinvestedinR&Dcenterconstructionproject,46.9143millionyuanwasinvestedindigitalmanagementsystemproject.InOctoberandNovember2020,theCompanytransferred73.4204millionyuanand160.2968millionyuan,respectivelyfromthespecialaccountforproceedstoreplacetheself-raisedfundsthathadbeeninvestedinadvanceintheproceedsproject. | |
| Temporaryreplenishmentofworkingcapitalwithidleproceeds | N/A |
| Amountofandreasonsforthebalanceofproceedsresultingfromprojectimplementation | N/A |
| Usageandpurposesofproceedsnotusedduringthecurrentreportingperiod | AsofDecember31,2022,thebalanceofunusedproceedsoftheCompanywas983.6361millionyuan,ofwhich:thebalanceofcashmanagementwas780millionyuan,andthebalanceof203.6361millionyuanwasdepositedintheaccountforproceeds. |
| Problemsorothercircumstancesintheuseanddisclosureofproceeds | None |
(3)Changesinproceedsprojects
√Applicable?Notapplicable
Unit:'0,000yuan
| Projectafterchange | Correspondingoriginalcommittedprojects | Totalamountofproceedstobeinvestedinthechangedproject(1) | Actualinvestmentamountinthecurrentreportingperiod | Actualcumulativeinvestmentamountasoftheendofthereportingperiod(2) | Investmentprogressasoftheendofthereportingperiod(3)=(2)/(1) | Theprojectreachestheintendedusablestatusdate | Benefitsrealizedinthecurrentreportingperiod | Whetherprojectedbenefitsaremet | Whetherthereisasignificantchangeinthefeasibilityofthechangedproject |
| Marketingnetworkconstructionproject | Marketingnetworkconstructionproject | 61,804.04 | 8,994.46 | 30,832.6 | 49.89% | September30,2024 | 0 | N/A | No |
| Total | -- | 61,804.04 | 8,994.46 | 30,832.6 | -- | -- | 0 | -- | -- |
| Reasonsforchange,decision-makingproceduresandinformationdisclosure(byspecificproject) | TheCompanyheldthesixthmeetingofthethirdsessionoftheBoardofDirectorsandthefifthmeetingofthethirdsessionoftheBoardofSupervisorsonApril20,2022,andreviewedandapprovedthe“ProposalonAdjustingtheImplementationMode,ExtendingtheConstructionPeriodandPermanentlyBolsteringtheWorkingCapitalofSomeFundRaisingProjects”,whichbecameeffectiveaftertheconsiderationofthe2021AnnualGeneralMeetingofShareholdersheldonMay13,2022.TheinvestmentonthemarketingnetworkbuildingprojectofPureH2Bwasterminated.Theremainingproceedsnotusedforthemarketingnetworkbuildingprojectamountedtoapproximately89.6426millionyuan(includingtheincomeoffinancialproducts),whichwillbeusedforpermanentlyreplenishingtheworkingcapital(theactualamounttobereplenishedtogetherwiththeproceedsofthefinancialproductswillbe91.0213millionyuan).(AnnouncementNo.:2022-021) | ||||||||
| Informationonandreasonsfornotmeetingthescheduledprogressorprojectedearnings(byspecificproject) | Thefund-raisingcapitalinvestmentprojecthasnotbeencompletedandthebenefitsgeneratedbythefund-raisingcapitalinvestmentprojectcannotbecalculatedyet | ||||||||
| Descriptionofsignificantchangesinthefeasibilityofthechangedproject | Thefeasibilityofthemarketingnetworkbuildingprojecthasnotchangedsignificantly | ||||||||
VIII.Salesofsignificantassetsandequity
1.Informationofsignificantassetsforsale?Applicable√NotapplicableTheCompanydidnotsellanysignificantassetsduringthereportingperiod.
2.Informationofsignificantequityforsale?Applicable√Notapplicable
IX.Analysisofmajorholdingcompaniesandjointstockcompanies
√Applicable?NotapplicableInformationonmajorsubsidiariesandjointstockcompanieswithanimpactof10%ormoreontheCompany'snetprofit
Unit:yuan
| Companyname | Companytype | Principaloperation | Registeredcapital | Totalassets | Netassets | Operatingincome | Operatingprofit | Netprofit |
| WinnerMedical(Huanggang)Co.,Ltd. | Subsidiaries | Mainlyresponsiblefortheproductionoflargerollsofcottonandcottontissues | 259,459,200.00 | 1,646,058,376.73 | 1,264,635,787.39 | 2,092,775,559.60 | 419,812,428.81 | 362,064,616.42 |
Acquisitionanddisposalofsubsidiariesduringthereportingperiod
√Applicable?Notapplicable
| Companyname | Methodofacquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactonoverallproductionoperationsandperformances |
| LongtermMedical | Businesscombinationsnotundercommoncontrol | Nosignificantdirectimpacts |
| WinnerGuilin | Businesscombinationsnotundercommoncontrol | Nosignificantdirectimpacts |
| WinnerMedical(Hunan) | Businesscombinationsnotundercommoncontrol | Nosignificantdirectimpacts |
| JunjianMedical | Businesscombinationsnotundercommoncontrol | Nosignificantdirectimpacts |
| PureHB(Shanghai) | Cancellation | Nosignificantdirectimpacts |
Descriptionofmajorholdingcompaniesandjointstockcompanies
X.StructuredsubjectscontrolledbytheCompany
?Applicable√Notapplicable
XI.ProspectsoftheCompany(I)Strategicplanning:
Sinceitsfoundation31yearsago,WinnerMedicalhasalwayskeptinmindthedevelopmentvisionof“caringforhealthandlife,makingabetterworld”,andtaken“Toleadthehealthcaretrendandachieveharmonybetweenpeopleandtheenvironment”asitsmission,whicharethecornerstoneandguidancefortheCompanytogofurther.TheCompanyfirmlyadherestofourcorporatevaluesof“hard-working&perseverance,pioneering&innovation,self-criticism,andlong-termism”.Intermsofmediumandlong-termstrategicdevelopment,theCompanyhasformedthestrategicguidelinesof“withleadingproductsasthedirection,innovativeR&Dasthecore,brandmarketingasthedriver,digitaloperationasthefoundation,intelligentmanufacturingastheweapon,andhigh-quality,high-efficiency,high-performanceandhigh-returntalentsastheguarantee,tobuildanewchapterofhigh-qualitydevelopment”.
1.MedicalconsumablesbusinessIn2022,theCompanyputforwardthestrategicgoalof“leadinginmedicalconsumablesandprovidingone-stopmedicalconsumablessolutions”,andplannedthestrategicdevelopmentandupgradingwithfourthemes:“insistingonproductinnovation,focusingonchanneldevelopment,buildingintelligenceviabrandmarketing,andenhancingcapabilitieswithexcellentoperation”.Thiswouldhelpcopewiththecomplex,ever-changingexternalenvironmentandstrideforwardonthenewjourneyofhigh-qualitydevelopment.Meanwhile,thestrategicacquisitionsofLongtermMedical,WinnerGuilin,WinnerMedical(Hunan)andJunjianMedicalhavesolidifiedandprovidedkeycapabilitiesandsuperiorsupportforthemedicalbusinesstobuildaone-stopmedicalconsumablessolutioncapacityandone-stopsalesserviceplatform.
2.HealthylivingconsumerproductbusinessPurcottonhasbeencommittedtofulfillingitsvisionof“PurcottonChangestheWorld”,itsmissionof“leadingahealthylifestyletobecomeacredibleChinesebrand”anditscorevaluesof“delightingusers,caringemployees,workinghardandinnovatingforchanges”for13years.Ithasalwaysfollowedthebrandmanagementprinciplesof“prioritizingqualityoverprofit,brandoverspeedandsocialvalueovercorporatevalue”.In2022,theCompanyputforwardthestrategicgoalsof“creatingalifestylewithpurecotton,andbecomingasafe,happyandsustainablebrandforconsumers”,andformulatedstrategicguidelinesof“buildingbrandasthedriver,leadingproductsasthecore,marketing+salesasthechannel,operationalexcellenceasthemeans”to“prioritizecompetitivecottonproductswhiledevelopingmasscottonproductsbycombiningnon-wovenandwovenbusinesses”,thusachievingthestrategicblueprintfortheglobaldevelopmentofall-cottonproductcategory.Purcottonwilladheretothedeliveryofitsinitialmissionof“PurcottonChangestheWorld”anditsbrandvalues,andprioritizechangingconsumerperceptiontohelpconsumersunderstandandidentifytheconceptof“security,happinessandsustainability”inacomprehensive,multifacetedmanner.TheCompanyhasbeensupportedbythreecorevaluesof“Medicalbackground,Purcottonphilosophy,QualityDNA”tobuildbrandintelligenceandestablishPurcottonasoneoftheglobalpreferredbrands.
(II)FY2023businessplans
1.MedicalconsumablesbusinessInthecurrentexternalbusinessenvironment,opportunitiesandchallengescoexist.TheCompanyhastodealwithmoreseveremarketandperformancechallenges.WinnerMedicalproposesfourbusinessstrategies,namely“productupgrading,technologybreakthrough,in-depthmarketing+salesstrategies,operationefficiencyimprovement”,todevelopfoursolutions--“surgicalsupplies,sensoryprotectionsupplies,woundcareandhealthcare”--aswellasbestsellers,andtapintokeychannelstowinmarketshares.TheCompanyhasincreaseditsstrategic-levelprojectresourceinvestmentandpressuremanagement,focusedonshort-termoperationalbreakthroughsaswellasmedium-andlong-termcapacitybuilding,andfolloweditsoverallstrategiestoachieveitsoperationalgoals.
(1)Productandtechnologystrategy:Focusandupgradethetraditionalproductportfolio,createbest-sellerssuchas
surgicalpacks,masksandfoamdressings,andimproveproductcompetitivenessbasedonthreecorecharacteristicsinthecurrentreportingperiod;promoteR&Dinnovationandindustry-university-researchinnovationprojects,buildtechnologicalbarriersbasedontheR&Doutcomesofbasicmaterials,andfirmlyimplementthestrategiesofproductfirst.
(2)Marketingstrategy:Buildprofessionalmedicalbrandintelligence,connectwithmodelacademicexperts,key
distributorsandplatforms,tapintoandopenmarketingchannelstocreateaservicechain,winandcontroltheendmarket,andenabledomesticandinternationaltradestogohandinhand.
(3)Operationstrategy:Improvethecompetitivenessofcost,manufacturingandoperationthankstocostreductionand
efficiencyimprovement,efficientandflexiblesupplychain,intelligentmanufacturingplanningandarrangements,digitaltransformationandupgrading,andfirmlyrealizethestrategicdevelopmentideaofoperationalexcellence.
(4)Organizationaldevelopment:Establishanefficientintegratedoperationalorganization,focusingonhigh-quality,high-
efficiency,high-performanceandhigh-returntalents,whilematchingwithperformanceevaluationandincentivemechanismsthatguidesales,growthpromotionandbenefitsharing,torevitalizeandimproveorganizationaleffectiveness.Newbusinessdirectionsandstrategieshavebeenproposedfornewbusinesses(mergersandacquisitions).Makebreakthroughsinoperationsintheshorttermandenhancebasiccapabilitiesinthemediumandlongterm,thustakingadvantageofproductsandchannelstounitetheGroupandstrivetobeNo.1inthemarketsegment.Keepupwithpolicydevelopment,builddifferentiatedabsolutecompetitiveadvantagesinproductplanninganddevelopment,channelexpansionandin-depthdevelopment.
2.HealthylivingconsumerproductbusinessBasedonthestrategicgoalof2025,2023istheyearofconsumptionrecoveryandtheturnaroundyearforPurcottontoresumehighgrowth.Astonewmarkets,consumptionandopportunities,wewillincreasestrategicinvestmentandrefinestrategicprojectprocessmanagement,formulateannualdevelopmentplansandmedium-termcapacity-buildingstrategies,promotetheachievementofbusinessgoals,andmakesteadyprogresstowardhigh-qualitydevelopment.
(1)Intermsofcorporatestrategy,upholdthebusinessstrategyof“leadingproductswithoperationalexcellence”.
(2)Intermsofaudiencetargeting,focusonelegantmothers,middleandupper-classgroupsandnewwhite-collarworkersbasedonthebrand'smid-to-advancedvaluepositioning.
(3)Regardingproductscenarios,focusonbaby,female,andhouseholdsupplies.
(4)Intermsofproducts,adheretotheconceptof“comfort,health,environmentalprotection”+fashionableproducts,and
focusonincreasingtheR&Dinvestmentinbasicmaterialsandfabricsinthefieldsofpurecottonspunlacenon-wovenfabricandgauze,enablingR&Dtechnologyreservetobe3-5yearsaheadoftheindustryanddrivingthedevelopmentofcorecompetitivenessofproductsinthelongrun.Adheretothetop-sellingproductstrategy,coveringthreeproductscenarios,improvethecontributionofcorecategories,andestablishtheabsolutemarketsharedominanceandoccupythecompetitivepositionofbest-sellers,thusdrivingthedevelopmentofall-categorycottonproducts.
(5)Asformarketing,focusonservingPurcotton'sconsumerbase,buildthecapacityof“topbrandasthedriver,commoditymarketingasthegoal”tointegratethequalitywitheffectivenessthroughcontinuousconsumercommunication,andimprovinguserloyaltyandincreasingrepurchaserateswhileraisingbrandreputationandawareness.
(6)Asforchannels,acceleratetheexpansionofnewstores,andrefinebasicmanagementdetailstoenhanceuserservice
andexperience.
(7)Asforoperationmanagement,enhanceorganizationalcapabilities,establishstandardsforhigh-efficiency,high-performanceandhigh-returntalents,andensuretalentdensityinthevalueplateau.Also,weshouldmovefastertomakebreakthroughsindigitaltransformationcapacitybuilding,empowerprivatedomaingrowththroughrefinedoperations,andcompletethedigitalsystemupgradingthatincorporatesadigitalproductsystem,digitalconsumersystemanddigitalchannelsystem,tobuildcorebusinessintegrationprocessestoachievesimplicity,visualizationandstandardization.Unremittingeffortsarerequiredforperfection.Lookingahead,2023marksakeyyearofstrategicupgradinganddevelopmentfortheCompany,anditistheyearofgrowth.Inthefaceofthecomplex,ever-changingexternalmarketenvironment,allemployeeswillbemorepositiveandopen-minded,activelyseekdevelopment,boldlymoveforward,andstrivetowriteanewchapterofgrowthforWinnerMedical!
TheabovebusinessplandoesnotconstituteacommitmentbytheCompanytoinvestors.Investorsareadvisedtoinvestrationally,beawareofinvestmentrisksandunderstandthedifferencesbetweenbusinessplansandcommitments.(III)PossibleriskstotheCompany
1.RiskofrawmaterialpricefluctuationsandcountermeasuresTheCompany'smainrawmaterialsarecotton,cottonyarn,andcottongreigefabricformedicalusemadefromcotton.Cottonpricesareaffectedbymultiplefactorssuchasplantingarea,naturalproduction,inventorycycle,agriculturalpricepolicyoforigin,consumerdemandandevenfuturesprices.Inaddition,thepricesofimportedcottonarealsoaffectedbyotherfactorssuchasinternationaltradepoliciesandexchangeratefluctuations.Ifthepurchasepriceofrawmaterialssuchascottoncontinuestoriseinthefuture,itwillhaveagreatercostpressureontheCompany'sproductionandoperation.IftheCompanyfailstoadjustthesalespricewiththatofrawmaterialprice,itmaynegativelyimpactthestabilityoftheCompany'sprofitability.Todealwiththeriskofcottonpricefluctuations,theCompanyusuallypurchasesforwardcontractswhenthecottonpriceisrelativelylow,andwhenthecottonpricerisestoacertainlevel,itwilladjustthesalespriceappropriatelytoreducethenegativeimpactontheCompany'sprofitability.
2.RisksoflowermarketdemandforinfectionpreventionproductsandcountermeasuresThankstoitsthreebrands,i.e.,“WinnerMedical”and“Purcotton”,theCompanyrealizedthesynergeticdevelopmentofmedicalandconsumersectors.Itsbusinessanddevelopmentprospectsdependonthesustainableandhealthydevelopmentofmacroeconomy,thecontinuedgrowthofnationalpercapitadisposableincome,andtheconsumers'increasingattentiontohealthandenvironmentalprotection.Therefore,theCompany'sdownstreamdemandmaybeaffectedbythesluggishmacroeconomicsituation,thedeclineinnationalpercapitadisposableincomeorpurchasingpower,andtheuncertaintyoftheexpectedeconomicoutlook.Therevenuerelatedtoinfectionpreventionproductsaccountedforahigherpercentagein2022,butthedemandforsuchproductsmaydecrease.Ifrevenuefromconventionalmedicalproductsdoesnotgrowwell,itwillharmtheCompany'sresults.Tocopewiththeriskoflowermarketdemandforinfectionpreventionproducts,theCompanyhasincreasedthecategoriesofmedicalconsumablesthroughindependentR&DandstrategicM&Ainthemedicalconsumablesbusinesssegment,toenrichproductlines,optimizeproductstructures,andprovideone-stopmedicalconsumablessolutionsformedicalstaff.
3.ExchangeraterisksandcountermeasuresMedicalconsumablesarethemainexportsoftheCompany,whicharesettledinmajorinternationalcurrenciessuchasUSdollars.In2022,theCompany'sforeignsalesamountintheoverallrevenueaccountedfor11%.Inrecentyears,withtheacceleratedpaceofChinaYuaninternationalizationandfurthermarketizationoftheChinaYuanexchangerateformationmechanism,theexchangerateflexibilityofChinaYuanagainsttheabovecurrencieshasincreased.FluctuationsintheChinaYuanexchangeratewill,ontheonehand,affecttheCompany'sproductexportsalesprices;ontheotherhand,itwillalsocausetheCompanytogenerateexchangegainsandlosses.SupposethereisasignificantappreciationofChinaYuaninthe
future.Inthatcase,itwillaffecttheCompany'spricecompetitivenessinoverseasmarkets,andcauseexchangelosses,whichwilladverselyaffecttheCompany'soperatingincomeandprofits.ToreducetheimpactofexchangeratefluctuationsontheCompany'sperformance,(1)forlong-termstablecustomers,theCompanyhasanagreedpriceadjustmentmechanism,andincaseofsignificantfluctuationsinkeyelementsaffectingtheprice,thepriceshallbeadjustedgenerallyaccordingtotheagreedpriceadjustmentmechanism;andatthesametime,theCompanyadjuststhequotationcyclefornewordersreceived,shortensthequotationcycle,andadjuststhequotationexchangerateinatimelymanner;(2)theCompanycarriesoutforwardsettlementandsaleofforeignexchangeforthepurposeofhedging,andlockstheforwardsettlementexchangerateinadvancetoreducetheriskandhedgetheexchangerateriskininternationalbusiness;and(3)TheCompanywillstrengthenitsresearchandanalysisofexchangerates,payattentiontochangesintheinternationalmarketenvironmentinrealtime,andadjustitsbusinessstrategiesinatimelymannertominimizetheriskofexchangeratefluctuations.
4.RiskofchangesinindustrypoliciesandstandardsMedicaldevice,whichdirectlyaffectsusers'lifeandhealthsafety,hasbeenakeysupervisedindustry.Inrecentyears,asChinafurtherdeepensthereformofthemedicalandhealthsystem,relevantgovernmentdepartmentshaveintroducedaseriesofregulationsandpoliciesonindustrystandards,bidding,priceformationmechanisms,circulationsystems,etc.,whichhaveawideandprofoundimpactonthedevelopmentofthemedicaldeviceindustry.Affectedbyglobalpublichealthevents,theforeigneconomicenvironmenthasbeenrelativelysluggish,whichmayleadtomedicalbudgetcuts,andthepricesensitivityofmedicalproductshasincreased,resultinginariskoffurthercompressingtheoperatingprofits.IftheCompanyfailstoadapttoprofoundchangesinindustrypoliciesinatimelymanner,itmayimpacttheCompany'soperations.
5.RiskofnotreceivingreimbursementfortheMedicalInvestmentProjectofWinnerMedical(Heyuan)and
countermeasuresDuetotheplanningofthesquareofHeyuanHigh-speedRailwayStationandthesurroundinghigh-speedrailwaynewtownalongtheJiangxi-ShenzhenHigh-speedRailway,the"AgreementonInvestmentandConstructionofMedicalComboKitsandCottonHouseholdProductsProductionProject"enteredintobyandbetweentheCompanyandthePeople'sGovernmentofZijinCounty,HeyuanCityinMay2016couldnotbefulfilled.InNovember2019,theInternationalArbitrationCourtinGanjiangNewDistrictissuedan“Award”confirmingtheterminationofthe“InvestmentandConstructionAgreementofMedicalComboKitsandCottonHouseholdProductsProductionProject”,andthePeople'sGovernmentoftheZijinCountyshallcompensatetheCompanyforeconomiclossesof550millionyuan,with50%tobepaidbythePeople'sGovernmentofZijinCountybyDecember31,2019and50%byFebruary29,2020.Asofthedisclosuredateofthereport,theCompanyhasreceivedalandtransferdepositof3millionyuanandacompensationpaymentof328millionyuanreturnedbythePeople'sGovernmentofZijinCounty.Thereisariskthattheremainingamountof225millionyuanmaynotbereceivedontimeinaccordancewiththe“Award”.TheCompanyhasmadeaprovisionforbaddebtsof112millionyuaninaccordancewiththeaccountingpolicy.TheCompanyiscurrentlycloselyfollowinguponthesubsequentpaymentplanofthePeople'sGovernmentofZijinCounty,HeyuanCity.
6.ImpairmentriskofgoodwillandotherassetsandcountermeasuresAsofDecember31,2022,theCompanyacquiredLongtermMedical,WinnerMedical(Hunan)andWinnerGuilintoimproveitsindustrialchain.AsofDecember31,2022,thecarryingvalueofgoodwillamountedto1.045billionyuan,accountingfor8.93%ofitsnetassets.Incaseofsubsequentunderperformanceoftheaforementionedacquiredcompany,theCompanywilltakeanimpairmentonthegoodwill,whichmayultimatelyharmtheCompany'sperformance.Attheendofeachyear,theCompanyperformsanimpairmenttestonparticipatingcompaniesorcompaniesconsolidatedundernon-commoncontrol(whetherornotthereisanindicationofimpairment).TheCompanywillmakeprovisionforimpairment,ifany,basedontheimpairmenttestresults.TheexistenceofthecasementionedabovewilllikelyhaveanimpactontheCompany'sannualnetprofit.Todealwiththeriskofimpairmentofassetssuchasgoodwill,theCompanywillmakemoreeffortstostrengthenitsbusinessmanagement,improveitsbusinessperformanceandreducetheriskofassetimpairment.
7.RisksofproceedsprojectsandcountermeasuresTheCompanyplanstoallocatetheproceedsfromthisissuancetotheconstructionprojectsofadvancedwounddressingproductionlines,amarketingnetwork,anR&DCenterandadigitalmanagementsystem.Suchprojects'developmentprogressandoperationwillcontributetotheCompany'sdevelopmentandprofitabilityinthenextfewyears.Basedonthefuturemarketforecast,theCompanyhasconductedaprudentialandsufficientfeasibilitystudyanddemonstrationoftheproceedsinvestmentproject.ThankstotheCompany'srichbusinessexperienceandmarketfoundationaccumulatedovertheyears,itisexpectedthattheproceedsinvestmentprojectcouldrealizegoodinvestmentincome.However,supposetherearechangesinexternalfactorssuchastheindustrymarket.Inthatcase,itcannotruleoutthatsomeprojectsmaynotbeimplementedasscheduledortheactualinvestmentreturnsmaybelowerthanexpected.Followingchangesintheexternalmarketandtheinternalcontrolandmanagementsystemofproceedsprojects,theCompanywillstrictlycontroltheprogressofcapitalinvestmentinvariousprojectsandkeepaneyeonprojectinvestmentrisk.XII.Registrationformsforreceptionsofsurveys,communication,interviewsandother
activitiesduringthereportingperiod
√Applicable?Notapplicable
| Time | Location | Method | Typesofobjects | Objects | Maincontentsofdiscussionsanddocumentsprovided | Basicinformationindexofsurveys |
| January7,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 85investors,includingRongtongFund,AlphaFundandFullgoalFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| February8,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 102investors,includingGFFund,ChinaAMC,BoseraFunds | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| February28,2022 | GuojinSecuritiesStrategyMeeting | Telephonecommunication | Institutions | 18investors,includingSpringsCapital,MingheInvestment | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| March2,2022 | HuachuangSecuritiesStrategyMeeting | Telephonecommunication | Institutions | 37investors,includingFullgoalFund,GFFund,ABC-CAFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| March4,2022 | ChangjiangSecurities&OrientSecuritiesStrategyMeetingandUBStelephonesurvey | Telephonecommunication | Institutions | 47investors,includingChinaAMC,InvescoGreatWallFunds,ChinaSouthernFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| April22,2022 | Webcastplatform | Others | Others | Onlineinvestor | FY2021operation | Fordetails,pleaserefertoSZSEInteractiveEase |
| April26,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 79investors,includingBlackRock,PAGFund,UBS | Businessoverviewandoperation | Fordetails,pleaserefertoSZSE |
| InteractiveEase | |||||||
| April27,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 35investors,includingChinaUniversalAsset,Aegon-industrialFund,BOCOMSchroders | FY2021performancecommunication | Fordetails,pleaserefertoSZSEInteractiveEase | |
| April28,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 9investors,includingHuafuFund,BOCInvestment,GuolianSecurities | FY2021performancecommunication | Fordetails,pleaserefertoSZSEInteractiveEase | |
| April29,2022 | Headquarterconferencerooms | Fieldsurveys | Institutions | 2investors,includingChinaMerchantsSecurities | FY2021performancecommunication | Fordetails,pleaserefertoSZSEInteractiveEase | |
| May10,2022 | InteractiveEase | Others | Others | Allonlineinvestors | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| May19,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 84investors,includingInvescoGreatWallFunds,ChinaSouthernFund,GreatWallFund | CompanyM&A | Fordetails,pleaserefertoSZSEInteractiveEase | |
| May27,2022 | Headquarterconferencerooms | Fieldsurveys | Individual | Variousindividualinvestors | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| June9,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 60investors,includingPerseveranceAsset,Aegon-industrialFundandKingTimeInvestment | CompanyM&A | Fordetails,pleaserefertoSZSEInteractiveEase | |
| July11,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 137investors,includingBOCOMSchroders,FullgoalFundandGFFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| August18,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 151investors,includingChinaUniversalAssetFund,GFSecuritiesandFullgoalFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| August19,2022 | Headquarterconferencerooms | Fieldsurveys | Individual | Variousindividualinvestors | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| September8,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 77investors,includingChinaSouthernFund,FullgoalFundandAegon-industrialFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase | |
| September28,2022 | Headquarterconferencerooms | Fieldsurveys | Institutions | 6investors,includingGuosenSecurities,QianhaiAllianceAssetManagement | Businessoverviewandoperation | Fordetails,pleaserefertoSZSE | |
| andEvergrandeLife | InteractiveEase | |||||
| October25,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 141investors,includingHarvestFund,BOCOMSchrodersandChinaSouthernFund | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| November23,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 24institutions,includingCindaSecurities,GFSecuritiesandChinaSecurities | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| December6,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 163investors,includingPenghuaFund,ChinaSouthernFundandChinaUniversalAsset | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
| December13,2022 | Headquarterconferencerooms | Telephonecommunication | Institutions | 143investors,includingAegon-industrialFund,ChinaSouthernFundandWanjiaAsset | Businessoverviewandoperation | Fordetails,pleaserefertoSZSEInteractiveEase |
CorporateGovernance
I.BasicStateofCorporateGovernance
TheCompanystrictlycomplieswiththeCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,theCodeofCorporateGovernanceforListedCompanies,theShenzhenStockExchangeGEMListingRules,theStandardizedOperationofListedCompaniesintheNo.2GuidelineofShenzhenStockExchangeSelf-RegulatoryGuidelinesforListedCompanies,andotherrelevantlawsandregulationspromulgatedbytheCSRCandShenzhenStockExchange,andformulatestheArticlesofAssociationandotherinternalcontrolrulesandregulationstostandardizetheCompany'sbehavior.ThecorporategovernancestructureconformstorelevantnormativedocumentsonlistedcorporategovernanceissuedbyChinaSecuritiesRegulatoryCommission.
1.Shareholdersandgeneralmeetingofshareholders
InstrictaccordancewiththeCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,theRulesofShareholders'MeetingofListedCompanies,theArticlesofAssociationandtheRulesofProcedureofShareholders'Meeting,theCompanystandardizestheproceduresofconvening,holdingandvoting,etc.ofthegeneralmeetingofshareholders,treatsallinvestorsequally,andenablesthemtofullyexercisetheirrightstoensuretherightsandinterestsofminorityshareholders.TheCompanyengageslawyerstoattendtheGeneralMeetingofShareholdersandissuelegalopinionsontheconveningandvotingproceduresofthemeetings,fullyrespectingandsafeguardingthelegitimaterightsandinterestsofallshareholders.
2.Companyandcontrollingshareholders,actualcontroller
TheCompanyhasindependentandcompletemainbusinessandindependentmanagementability,independentfromthecontrollingshareholdersandactualcontrollersinpersonnel,assets,business,managementorganizationandfinancialaccountingsystem,andcanindependentlyoperate,independentlymanageandbearresponsibilitiesandrisks.ThecontrollingshareholdersandactualcontrollersoftheCompanycanexercisetheirrightsandundertakecorrespondingobligationsinaccordancewiththelaw.Duringthereportingperiod,therewasnobehaviordirectlyorindirectlyinterferingintheCompany'sdecision-makingandbusinessactivitiesandusingitscontrollingpositiontoinfringeontheinterestsofothershareholdersbeyondtheauthorizationofthegeneralmeetingofshareholdersandtheboardofdirectors,whichhadnoadverseimpactonthecorporategovernancestructureandindependence.
3.DirectorsandBoardofDirectors
ThedirectorsoftheCompanydonothavethecircumstancesthattheyarenotallowedtobedirectorsoftheCompanyasstipulatedinArticle146oftheCompanyLaw.Theirappointmentandremovalstrictlycomplywiththeboardofdirectors'approvalproceduresandtheshareholders'generalmeeting,andthereisnoconflictwithrelevantlaws,regulationsortheArticlesofAssociation.Alldirectorsworkstrictlyanddiligentlyduringtheirtenure,cancontinuouslypayattentiontotheCompany'soperatingconditions,activelyparticipateinrelevanttraining,andimprovethestandardoperationlevel;activelyparticipateintheboardmeetings,givefullplaytotheirownprofessionalexpertise,makeprudentdecisionsandsafeguardtheinterestsoftheCompanyandthemajorityofshareholders.TheconveningandholdingproceduresoftheboardmeetingoftheCompanymeettherequirementsofrelevantregulations;thecontentsofpreviousboardmeetingminutesaretrue,accurate,completeandundersafepreservation;theresolutionsofthemeetingsarefully,accuratelyandtimelydisclosed.UndertheBoardofDirectorsisaStrategyandSocialResponsibilityCommittee,aNominationCommittee,aRemunerationandAssessmentCommitteeandanAuditCommittee.
4.SupervisorsandBoardofSupervisors
ThesupervisorsoftheCompanydonothavethecircumstancesthattheyarenotallowedtobesupervisorsoftheCompanyasstipulatedinArticle146oftheCompanyLaw.TheirqualificationsmeettherelevantrequirementsoftheArticlesofAssociation.Theproceduresforconvening,holdingandvotingoftheboardofsupervisors'meetingsoftheCompanyconformtotheRulesofProcedureoftheBoardofSupervisors.TheCompany'ssupervisorscanexercisethefunctionsandpowersoftheboardofsupervisorsandfulfilltheirdutiesdiligently.
5.PerformanceevaluationandincentiveandrestraintmechanismsThroughperformanceevaluation,theCompanycaneffectivelymakeacomprehensiveevaluationoneachemployee,andfurtherunderstandseachemployee'sworkabilityandexpertise,soastoeffectivelyadjusttheappropriatepositionandachievethegoalofperformanceevaluation.TheCompanyisgraduallyimprovingitsperformanceevaluationmechanism.SeniorandmiddlemanagementremunerationislinkedtotheCompany'soperatingperformanceindicators.TheCompanyhasestablishedanenterpriseperformanceevaluationandincentivesystem.Theperformanceevaluationstandardsandevaluationproceduresofdirectors,supervisorsandseniormanagersarefairandtransparent.TheirincomeislinkedtotheCompany'soperatingperformance.Theappointmentofseniormanagersisopenandtransparent,complyingwiththeprovisionsoflawsandregulations.
6.Informationdisclosureandtransparency
Duringthereportingperiod,theCompanydisclosedtheCompany'sinformationtruthfully,accurately,completely,timelyandfairlyinstrictaccordancewiththerequirementsofrelevantlawsandregulations,ArticlesofAssociationandManagementSystemofInformationDisclosureAffairs.TheCompanyhasdesignatedChinaSecuritiesJournal,ShanghaiSecuritiesNews,SecuritiesTimesandSecuritiesDailyasthedesignatedpapermediaforinformationdisclosureoftheCompany,andCNINFO.com(http://www.cninfo.com.cn)isthewebsitespecifiedfortheinformationdisclosuretoensurethatallshareholdershavefairaccesstotheCompany'sinformation.
7.Investorrelationsmanagement
FollowingtherequirementsofrelevantlawsandregulationsandtheInvestorRelationsManagementSystem,theCompanydesignatesthesecretaryoftheboardofdirectorsasthepersoninchargeofinvestorrelationsmanagement,responsibleforcoordinatinginvestorrelations,receivingshareholders'visits,answeringinvestors'inquiries,providinginvestorswiththeinformationdisclosedbytheCompany,etc.TheCompanyrespondstoinvestors'inquiriesthroughtelephone,e-mail,investorrelationsinteractiveplatform,investorreceptiondayandotherforms,whichstrengthensinformationcommunication,promotesbenigninteractionwithinvestors,andeffectivelyimprovesthetransparencyoftheCompany.
8.Stakeholders
TheCompanyfullyrespectsandsafeguardsthelegitimaterightsandinterestsofrelevantstakeholders,realizesthecoordinationandbalanceofinterestsoftheshareholders,employees,doctorsandpatients,societyandotherparties,paysattentiontoenvironmentalprotectionandactivelyparticipatesinpublicwelfareundertakingswhilerealizingthesustainableandhealthydevelopmentoftheCompanyandtheinterestsofshareholders.
9.EstablishmentandimplementationofaninternalauditsystemAnauditcommitteeissetupundertheboardofdirectorstoestablishaninternalauditsystem,andisresponsibleforthecommunication,supervision,meetingorganizationandverificationoftheCompany'sinternalandexternalaudit.TheInternalAuditDepartmentundertheauditcommitteeisthedailyoffice.Undertheleadershipoftheauditcommittee,itindependentlyexercisesitsfunctionsandpowerstoinspectandsupervisetheestablishmentandimplementationoftheCompany'sinternalcontrolsystem,theauthenticityandintegrityoftheCompany'sfinancialinformation,andtheefficiencyandeffectofbusinessactivities.Whetherthereisasignificantdifferencebetweentheactualsituationofcorporategovernanceandtherulesonlistedcorporategovernanceprescribedbylaws,administrativeregulationsandtheChinaSecuritiesRegulatoryCommission?Yes√NoThereisnosignificantdifferencebetweentheactualsituationofcorporategovernanceandtherulesonlistedcorporategovernanceprescribedbylaws,administrativeregulationsandtheChinaSecuritiesRegulatoryCommission
II.IndependenceoftheCompanyfromitscontrollingshareholdersandactual
controllersintermsofguaranteeingassets,personnel,finance,institutionsandbusinessSinceitsestablishment,theCompanyhasstandardizeditsoperationinaccordancewiththeCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChinaandotherrelevantlawsandregulationsaswellastherequirementsoftheArticlesofAssociation,establishedandimprovedthecorporategovernancestructure,completelyseparatedfromtheexistingshareholdersinbusiness,assets,personnel,organizationsandfinance,andhasacompletebusinesssystemandtheabilitytooperateindependentlyinthemarket.
1.Assetindependence
TheCompanyhasindependentandtotalassetswithclearownership,aseparateproductionsystem,auxiliaryproductionsystemandsupportingfacilities,andhaslegalrightofplants,land,equipment,trademarks,patents,non-patentedtechnologyandotherassetsrelatedtoproductionandoperation.IthascompletecontroloveralltheassetsoftheCompany,andthereisnobehaviorofcontrollingshareholdersandactualcontrollersoccupyingtheassetsoftheCompany.
2.PersonnelindependenceTheCompanyhassignedlaborcontractswithitsemployees,hasindependentlabor,personnel,salaryandwelfaresystems,andmaintainsindependencewithitscontrollingshareholders,actualcontrollersandotherenterprisesundertheircontrol.TheCompanyhasestablishedasoundcorporategovernancestructure,andthedirectors,supervisorsandseniormanagersarelegallyselectedinstrictaccordancewiththeCompanyLaw,ArticlesofAssociationandotherrelevantprovisions.Thegeneralmanager,deputygeneralmanager,financialchief,secretaryoftheboardofdirectorsandotherseniormanagersoftheCompanydonotholdanyotherpositionsexceptdirectors,supervisorsandlimitedpartnersinthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem,anddonotreceiveasalaryinthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.ThefinancialpersonneloftheCompanydonotworkpart-timeintheenterprisesofcontrollingshareholders,actualcontrollersorotherenterprisescontrolledbythem.
3.Financialindependence
TheCompanyhassetupanindependentfinancialdepartment,equippedwithfull-timefinancialpersonnel,andhasestablishedanindependentfinancialaccountingsystem.TheCompanycanmakefinancialdecisionsindependently,andhasastandardizedfinancialaccountingsystemandinternalcontrolsystem,suchasinternalfinancialmanagementsystemforbranchesandsubsidiaries.ThereisnosituationofcontrollingshareholdersinterferinginusingtheCompany'sfunds.TheCompanyhasanindependentbankaccountanddoesnotsharethebankaccountwiththecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.Asanindependenttaxpayer,theCompanymakestaxreturnsandfulfillsitspaymentobligationsindependentlyinaccordancewiththelaw.Thereisnosituationofmixedtaxpaymentwiththecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.TheCompany'sfinancialoperationisindependentofthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.
4.Organizationindependence
InstrictaccordancewiththeCompanyLawofthePeople'sRepublicofChina,ArticlesofAssociationandotherrelevantprovisions,theCompanyhasestablishedandimprovedtheGeneralMeetingofShareholders,theBoardofDirectors,theBoardofSupervisors,themanagementdepartmentandthecorrespondingrulesofprocedureofthethreemeetings,andformedaperfectcorporategovernancestructureandstandardizedoperationsystem.Accordingtothedevelopmentneedsofproductionandoperation,theCompanyhassetupcorrespondingofficesandproductionandoperationorganizations,andindependentlyexercisedtheoperatingmanagementauthority,andhascompleteprocurement,R&D,production,salessystemsandsupportingdepartments.TheCompany'sproduction,operationandofficearestrictlyseparatedfromthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem,andthereisnomixedoperationorjointofficewiththecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.
5.BusinessindependenceTheCompanyhasthecorrespondingqualificationsrequiredforoperation,independentandcompletebusinesssystem,informationsystemandmanagementsystem,etc.necessarytoengageinoperatingbusiness,andindependentandcompleteR&D,productioncapacity,procurementandsalesbusinesssystems.ThebusinessoftheCompanyisindependentofthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.Thereisnodependenceonthecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.Thereisnohorizontalcompetitionorunfairrelatedtransactionwiththecontrollingshareholders,actualcontrollersandotherenterprisescontrolledbythem.III.Horizontalcompetition
?Applicable√NotapplicableIV.Informationabouttheannualgeneralmeetingofshareholdersandextraordinary
generalmeetingofshareholdersheldduringthereportingperiod
1.Generalmeetingofshareholdersduringthereportingperiod
| Meetingsession | Meetingtype | Investorparticipationproportion | Conveningdate | Dateofdisclosure | Resolutionsofthemeeting |
| 2021AnnualGeneralMeetingofShareholders | Annualgeneralmeetingofshareholders | 77.06% | May13,2022 | May13,2022 | ProposalontheCompany's2021AnnualReportandItsAbstract,ProposalontheCompany's2021AnnualProfitDistributionPlan,etc. |
2.Thepreferredshareholderswithvotingrightsrestoredrequestanextraordinarygeneralmeetingof
shareholders?Applicable√Notapplicable
V.Thecompanyhasavotingrightsdifferentialarrangement?Applicable√Notapplicable
VI.Corporategovernanceinthered-chipstructure?Applicable√Notapplicable
VII.Directors,SupervisorsandSeniorManagement
1.Basicinformation
| Name | Position | Statusofservice | Gender | Age | Startdateoftenure | Enddateoftenure | Numberofsharesheldatthebeginningoftheperiod(shares) | Numberofsharesincreasedincurrentperiod(shares) | Numberofsharesdecreasedincurrentperiod(shares) | Otherincreasesanddecreases(shares) | Numberofsharesheldattheendoftheperiod(shares) | Causesforchangeinshares |
| LiJianquan | ChairmanandGeneralManager | Incumbent | Male | 66 | May18,2015 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| FangXiuyuan | Director,DeputyGeneralManager,ChiefFinancialOfficer | Incumbent | Male | 55 | May18,2015 | July12,2024 | 0 | 40,000 | 0 | 0 | 40,000 | Increaseinsharesinthesecondarymarket |
| XuXiaodan | Director | Incumbent | Female | 35 | May18,2015 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| GuoZhenwei | Director | Incumbent | Male | 39 | June28,2018 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| PengJianfeng | Independentdirector | Incumbent | Male | 62 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| XieJiawei | IndependentDirector | Incumbent | Female | 50 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| KeyKeLiu | IndependentDirector | Incumbent | Male | 59 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| ZhangTingting | ChairmanoftheBoardofSupervisors | Incumbent | Female | 37 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| WangYing | Supervisor | Incumbent | Female | 41 | May18,2015 | July12,2024 | 0 | 30,000 | 0 | 0 | 30,000 | Increaseinsharesinthesecondarymarket |
| LiuHua | EmployeeRepresentativeSupervisor | Incumbent | Female | 50 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| ChenHuixuan | DeputyGeneralManager,SecretarytotheBoardOfDirectors | Incumbent | Female | 41 | May18,2015 | July12,2024 | 0 | 5,300 | 0 | 0 | 5,300 | Increaseinsharesinthesecondarymarket |
| ZhangLi | Deputygeneralmanager | Incumbent | Female | 45 | July13,2021 | July12,2024 | 0 | 0 | 0 | 0 | 0 | N/A |
| Total | -- | -- | -- | -- | -- | -- | 0 | 75,300 | 0 | 0 | 75,300 | -- |
Dismissalofdirectors,supervisorsandseniormanagementinthetermofofficeduringthereportingperiod?Yes√NoChangeofdirectors,supervisorsandseniormanagement?Applicable√Notapplicable
2.ServicestatusProfessionalbackground,mainworkexperienceandmainresponsibilitiescurrentlyintheCompanyofcurrentdirectors,supervisorsandseniormanagementoftheCompanyMr.LiJianquan,bornin1957,Chinese,apermanentresidentoftheHongKongSpecialAdministrativeRegion;Collegedegree.Hecreatedtwobrandsof“WinnerMedical”and“Purcotton”andservedastheChairmanandGeneralManagerofWinnerMedicalCo.,Ltd.,aswellastheChairmanandGeneralManagerofShenzhenPurcottonTechnologyCo.,Ltd.Hewasawardedthetitleof“InnovativeandEntrepreneurialFiguresandAdvancedModelsforthe40thAnniversaryoftheEstablishmentoftheShenzhenSpecialEconomicZone”.Mr.FangXiuyuan,borninAugust1968,Chinese,withoutpermanentresidencyabroad;Collegedegree,ChineseCertifiedPublicAccountant.FromJuly1988toApril1998,heservedastheAccountantandChiefofFinanceDepartmentofHubeiMedicalandHealthProductsImportandExportCorporation.Since2000,hehasbeentheDirector,DeputyGeneralManagerandChiefFinancialOfficerofWinnerMedicalCo.,Ltd.Mr.FangXiuyuanconcurrentlyholdsthepostsofChairmanofZhejiangLongtermMedicalTechnologyCo.,Ltd.aswellasanExecutivePartnerofShenzhenPurcottonTechnologyCo.,Ltd.,ShenzhenQianhaiPurcottonE-CommerceCo.,Ltd.,WinnerMedical(Huanggang)Co.,Ltd.,WinnerMedical(Chongyang)Co.,Ltd.,WinnerMedical(Jiayu)Co.,Ltd.,WinnerMedical(Jingmen)Co.,Ltd.,YichangWinnerMedicalTextileCo.,Ltd.,WinnerMedical(Tianmen)Co.,Ltd.,WinnerMedical(Wuhan)Co.,Ltd.andXiamenLeyuanInvestmentPartnership(L.P.).Mr.FangXiuyuaniscurrentlyamemberofthe7thShenzhenCommitteeoftheCPPCCandViceChairmanoftheFederationofIndustryandCommerceofShenzhenLonghuaDistrict.Ms.XuXiaodan,bornin1987,Chinese,withoutpermanentresidencyabroad;Bachelordegree.ShejoinedtheCompanyin2010;fromAugust2013toJanuary2015,shewasthePurchasingManageroftheProcurementDepartmentofShenzhenPurcottonTechnologyCo.,Ltd.;fromJanuary2015toJanuary2020,sheservedastheDirectorofCommodityCenterofShenzhenPurcottonTechnologyCo.,Ltd.;fromMay2015tonow,shehasbeenaDirectorofWinnerMedicalCo.,Ltd.;andfromFebruary2020tonow,shehasbeentheDirectorofStrategicPlanningCenterofWinnerMedicalCo.,Ltd.Atpresent,Ms.XuXiaodanisalsoaDirectorofWinnerMedical(Heyuan)Co.,Ltd.andWinnerMedical(Wuhan)Co.,Ltd.Mr.GuoZhenwei,bornin1984,Chinese,withoutpermanentresidencyabroad;BachelordegreeofCentralUniversityofFinanceandEconomics,EMBAMasterDegreeofChinaEuropeInternationalBusinessSchool.FromJuly2007toSeptember2009,hewasanSeniorAuditorofDeloitteToucheTohmatsuLimited;fromSeptember2009toJuly2010,hewasaresearcherofChinaInternationalCapitalCorporationLimited;fromJuly2010tonow,hehasbeenworkingatSequoiaCapitalChinaandiscurrentlythemanagingdirector;fromJune2018tonow,hehasbeenadirectorofWinnerMedicalCo.,Ltd.Atpresent,Mr.GuoZhenweiisalsoadirectorofShijiazhuangJunlebaoDairyCo.,Ltd.,ShanghaiBuyQuicklyTechnologyandServicesCo.,Ltd.,LiuliuOrchardGroupCo.,Ltd.,HangzhouDahitiScience&TechnologyCo.,Ltd.,DeqingJiajunBeverageCo.,Ltd.,SichuanVanovNewMaterialCo.Ltd.,ShanghaiShouquanzhaiE-commerceCo.,Ltd.,LOHOHoldingInc.,DynamicsChinaHoldingCompany,ShanghaiRuishuElectronicCommerceCo.,Ltd.,andGenkiForestTechnologyGroupHoldingsLimited,aswellasasupervisorofShanghaiQiyaoAutomobileTechnologyCo.,Ltd.Mr.KeyKeLiu,bornin1964,American,BachelorandMasterdegreeinChemicalEngineeringofNorthwestUniversity,DoctorateofCityUniversityofNewYork,USA,MasterofManagementofRensselaerPolytechnicInstitute,USA,foreignacademicianofAustralianNationalAcademyofEngineering.HewasaChiefScientistofGEGlobalResearch,adirectorofPowerEnvironmentandEnergyResearchCenter(PEER)oftheCaliforniaInstituteofTechnology,adirectoroftheInternationalPittsburghCoalConference(PCC)Organization,amemberofPCCOrganization,anindependentdirectorofKonfoongMaterialsInternationalCo.,Ltd.,ShenzhenHifutureInformationTechnologyCo.,Ltd.,andHunanYussenEnergyTechnologyCo.,Ltd.Healsohasworkedformanyyearswithwell-knownmultinationalcompaniessuchasExxon-MobilandUTC.HeiscurrentlythedeanoftheSchoolofInnovationandEntrepreneurship,PresidentoftheCleanEnergyResearchInstituteandchairprofessoroftheDepartmentofChemistry,SouthernUniversityofScienceandTechnology,standingdirectoranddeputydirectorofCenterforChinaandGlobalization(CCG),directorofCarnegie–TsinghuaCenter,anddirectorofPuritekCompanyLtd..AfterreturningtoChina,hewasappointedasthedeputydirectorandChiefTechnologyOfficer(CTO)ofNationalInstituteofClean-and-Low-CarbonEnergy.HewasawardedtheTopFiftyChinaOverseas-educatedScholarsinInnovationandEntrepreneurshipin2015,PittAwardin2013andEmeraldHonorsSpecialRecognitionAwardin2006.
Mr.PengJianfeng,bornin1961,Chinese,withoutpermanentresidencyabroad;masterdegreeofRenminUniversityofChina.Since1986,hehassuccessivelyservedaslecturer,associateprofessorandprofessorintheSchoolofLaborandHumanResourcesofRenminUniversityofChina;previously,hehadsuccessivelyservedastheindependentdirectorofTellingTelecommunicationHoldingCo.,Ltd.,SunwardIntelligentMachineryCo.,Ltd.,GoertekCo.,Ltd.,ChineseUniversePublishingandMediaGroupCo.,Ltd.,HaierSmartHomeCo.,Ltd.,ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.andChowTaiSengJewelleryCo.,Ltd.;currentlytheindependentdirectorofJinkoPowerTechnologyCo.,Ltd.,non-independentdirectorofHyteraCommunicationsCorporationLimited,directorofCCBTrustCo.,Ltd.,executivedirectorofChinaStoneManagementConsultingLtd.andexecutivedirectorofChinaStone(Beijing)CorporationCultureManagementConsultingCo.,Ltd.Mr.PengJianfenghasbeendeeplyinvolvedinenterprisesforalongtimetoprovideconsultingservices.HehasbeenemployedasaseniormanagementconsultantandanexpertgroupleaderbyShenzhenHuawei,GuangdongMideaGroup,ShandongLiuheGroup,ENNGroup,etc..Theexpertteamledbyhimhasprovidedconsultingservicesforhundredsoffamousenterprises,andthemanagementconsultingteamledbyhimhascreatedtheHuaweiBasicLaw,CharterofOCT,TCLFightsScalewithSpeed,TheThirdRoadofMidea,Samsung(China)Culture,MeagerProfitManagementandServiceMarketingofShandongLiuheGroup,ThreeMechanismsandSixSystemsofHumanResourcesofBaishaGroup,JointProgrammeofActionofDongfengNissan,LenovoCulturalStudiesandJingdongCulture.Hewasawardedthe“TopTenFigures”ofthesecondChinaHumanResourceManagementAwardandthe“TopTenRespectableManagementConsultingExperts”bytheManagementConsultingCommitteeofChinaEnterpriseConfederation.Ms.XieJiawei,bornin1973,Chinese,withoutpermanentresidencyabroad;Bachelordegree,certifiedpublicaccountantandtaxaccountant.Previously,shesuccessivelyservedastheDeputyDirectorofBeijingZhongtianHuazhengCertifiedPublicAccountantsCo.,Ltd.,DeputyDirectorofShenzhenBranchofBDOChinaShuLunPanCertifiedPublicAccountantsLLP,ViceChairmanofthe6thCouncilofShenzhenInstituteofCertifiedPublicAccountants,andIndependentDirectorofShenzhenGuangjuEnergyCo.,Ltd.,ShenzhenTopbandCo.,Ltd.,GuangdongXinhuiMeidaNylonCo.,Ltd.,andShenzhenDynanonicCo.,Ltd.,aswellasIndependentDirectorofShenzhenHeungkongHoldingCo.,Ltd.,andacorememberofVanhoSecurities.SheiscurrentlyapartnerofDahuaCertifiedPublicAccountantsCo.,Ltd.,amemberofthe6thCouncilofGuangdongInstituteofCertifiedPublicAccountants,anoff-campussupervisorforgraduatestudentsofShenzhenUniversity,andanindependentdirectorofHan'sLaserTechnologyIndustryGroupCo.,Ltd.
(2)BoardofSupervisorsMs.ZhangTingting,bornin1986,Chinese,withoutpermanentresidencyabroad;Bachelordegree.ShejoinedthecompanyinNovember2010andsuccessivelyservedastheManageroftheSupplierManagementDepartment,DomesticTradeDrugstoreManagementDepartment,DistributorManagementDepartment,ProductDevelopmentDepartmentandE-commerceCommodityDepartmentfromJuly2014toJanuary2021.SheiscurrentlytheCategoryManageroftheCompany.SheisconcurrentlyamemberoftheLonghuaStreetCPCWorkingCommitteeonNon-PublicEconomicandSocialOrganizations,SecretaryofthePartyCommittee,ChairmanoftheWomen'sFederation,SecretaryoftheYouthLeagueCommittee,andPartyRepresentativeofLonghuaDistrict.Shehasbeenawardedthetitleof“ShenzhenOutstandingCommunistPartyMember”bytheShenzhenMunicipalCommitteeofCPC.Ms.LiuHua,bornin1973,Chinese,withoutpermanentresidencyabroad;MBAandMasterdegreeofTongjiUniversity.FromApril2004toSeptember2009,shewastheManageroftheInternationalTradeDepartmentofWinnerIndustries(Shenzhen)Co.,Ltd.;fromSeptember2009toNovember2011,sheservedastheDirectorofOperationCenterofShenzhenPurcottonTechnologyCo.,Ltd.;fromNovember2011toApril2021,sheservedastheDeputyGeneralManagerofShenzhenPurcottonTechnologyCo.,Ltd.;sinceJanuary2015,shehasbeenaDirectorofShenzhenPurcottonTechnologyCo.,Ltd.;andsinceApril2021,shehasbeentheVicePresidentofShenzhenPurcottonTechnologyCo.,Ltd.Ms.WangYing,bornin1982,Chinese,withoutpermanentresidencyabroad;Bachelordegree.ShejoinedtheCompanyinJuly2005.FromJanuary2013toMay2014,shewastheManagerofForeignTradeDepartmentofWinnerIndustries(Shenzhen)Co.,Ltd.;fromMay2014toJuly2016,sheservedasDeputyDirectorofWinnerMedicalCo.,Ltd.anditspredecessor,InternationalTradeDepartment;sinceMay2015,shehasbeenaSupervisorofWinnerMedicalCo.,Ltd.;fromJuly2016toDecember2017,shewastheDirectorofMarketingDepartmentofWinnerMedicalCo.,Ltd.;fromSeptember2017toFebruary2018,shewastheRotatingCEOofWinnerMedicalCo.,Ltd.;fromJanuary2018toDecember2022,sheservedastheDirectorandDeputyGeneralManagerofShenzhenPureH2BTechnologyCo.,Ltd.SheisnowtheSeniorDirectorofCommodityDepartmentVofWinnerMedicalCo.,Ltd.Currently,shealsoservesasExecutivePartnerofXiamenYutongInvestmentPartnership(L.P.)andSupervisorofWinnerMedical(Heyuan)Co.,Ltd.
(3)OtherseniormanagementMs.ZhangLi,bornin1978,Chinese,withoutpermanentresidencyabroad;Bachelor'sdegree.ShejoinedWinnerMedicalCo.,Ltd.inSeptember2010andservedastheMedicalBusinessMarketingDirector,R&DDirector,OverseasMarketingDirector,SalesDirectorandRotatingCEOfromSeptember2010toJune2021.Currently,sheistheVicePresidentformedicalbusinessmarketingoftheCompany.Ms.ChenHuixuan,bornin1982,Chinese,withoutpermanentresidencyabroad;Master'sdegreeinFinance,UniversityofGlasgow,UK.FromFebruary2007toJune2009,shewasanAnalystAssistantofBreanMurray,Carret&Co.;fromSeptember2009toMay2015,sheservedasaManageroftheInvestmentManagementDepartmentofWinnerIndustries(Shenzhen)Co.,Ltd.;sinceMay2015,shehasbeentheDeputyGeneralManagerandSecretarytotheBoardofDirectorsofWinnerMedicalCo.,Ltd.Atpresent,shealsoservesasanExecutivePartnerofXiamenHuikangInvestmentPartnership(L.P.)andDirectorofChengduWinnerLikangMedicalProductsCo.,Ltd.Ms.ChenHuixuaniscurrentlyamemberofInvestorRelationsManagementCommitteeofShenzhenPublicCompaniesAssociation.Shewasawarded5A(Highest)forPerformanceEvaluationofBoardSecretariesofListedCompaniesbyChinaAssociationforPubilcCompanies,andthe18thand19thNewFortuneGoldBoardSecretary.Servicestatusintheshareholderunit
√Applicable?Notapplicable
| Nameofstaff | Shareholderunitname | Positionheldinshareholderunit | Startdateoftenure | Enddateoftenure | Whethertoreceiveremunerationorallowanceintheshareholderunit |
| LiJianquan | WinnerGroupLimited | Director | April8,2003 | No | |
| FangXiuyuan | XiamenLeyuanInvestmentPartnership(limitedpartnership) | Executivepartner | May2,2013 | No | |
| WangYing | XiamenYutongInvestmentPartnership(limitedpartnership) | Executivepartner | May2,2013 | No | |
| ChenHuixuan | XiamenHuikangInvestmentPartnership(limitedpartnership) | Executivepartner | May2,2013 | No | |
| Descriptionofservicestatusintheshareholderunit | None | ||||
Servicestatusinotherunit
√Applicable?Notapplicable
| Nameofstaff | Otherunitname | Positionheldinotherunit | Startdateoftenure | Enddateoftenure | Whethertoreceiveremunerationorallowanceinotherunit |
| LiJianquan | GloryRayHoldingsLimited | Director | April11,2012 | No | |
| LiJianquan | GloryRayLimited | Director | May4,2012 | No | |
| LiJianquan | ShenzhenPurcottonTechnologyCo.,Ltd. | Chairman,generalmanager | December7,2009 | No | |
| LiJianquan | ShenzhenQianhaiPurcottonE-commerceCo.,Ltd. | Chairman | July21,2015 | No | |
| LiJianquan | WinnerMedicalMalaysiaCo.,Ltd. | Director | July17,2013 | No |
(Continued)
| Nameofstaff | Otherunitname | Positionheldinotherunit | Startdateoftenure | Enddateoftenure | Whethertoreceiveremunerationorallowanceinotherunit |
| LiJianquan | WinnerMedical(HongKong)Limited | Director | January14,2008 | No | |
| LiJianquan | ShenzhenPureH2BTechnologyCo.,Ltd. | Chairman,generalmanager | January25,2018 | No | |
| LiJianquan | ShenzhenCottonLiningTechnologyInnovationCo.,Ltd. | Chairman | July9,2019 | No | |
| LiJianquan | FanyuInnovationHolding(Shenzhen)Co.,Ltd. | Supervisor | September18,2021 | No | |
| FangXiuyuan | ShenzhenPurcottonTechnologyCo.,Ltd. | Director | December7,2009 | No | |
| FangXiuyuan | ShenzhenQianhaiPurcottonE-commerceCo.,Ltd. | Director | July21,2015 | No | |
| FangXiuyuan | WinnerMedical(Huanggang)Co.,Ltd. | Director | January14,2005 | No | |
| FangXiuyuan | HuanggangWinnerCottonIndustryCo.,Ltd. | Director | October18,2010 | No | |
| FangXiuyuan | WinnerMedical(Chongyang)Co.,Ltd. | Director | November13,2001 | No | |
| FangXiuyuan | WinnerMedical(Jiayu)Co.,Ltd. | Director | February20,2001 | No | |
| FangXiuyuan | WinnerMedical(Jingmen)Co.,Ltd. | Director | December15,1995 | No | |
| FangXiuyuan | YichangWinnerMedicalTextileCo.,Ltd. | Director | April22,1999 | No | |
| FangXiuyuan | WinnerMedical(Tianmen)Co.,Ltd. | Director | February23,2001 | No | |
| FangXiuyuan | WinnerMedical(Heyuan)Co.,Ltd. | Director | May18,2016 | No | |
| FangXiuyuan | WinnerMedical(Wuhan)Co.,Ltd. | Director | January23,2017 | No | |
| FangXiuyuan | WinnerMedical(HongKong)Limited | Director | January14,2008 | No | |
| FangXiuyuan | ChengduWinnerLikangMedicalProductsCo.,Ltd. | Director | May31,2009 | No | |
| FangXiuyuan | ShenzhenPureH2BTechnologyCo.,Ltd. | Director | January25,2018 | No | |
| FangXiuyuan | ShenzhenCottonLiningTechnologyInnovationCo.,Ltd. | Director | July9,2019 | No | |
| FangXiuyuan | ZhejiangLongtermMedicalTechnologyCo.,Ltd. | Chairman | May10,2022 | No | |
| XuXiaodan | WinnerMedical(Heyuan)Co.,Ltd. | Director | May18,2016 | No | |
| XuXiaodan | WinnerMedical(Wuhan)Co.,Ltd. | Director | January23,2017 | No | |
| GuoZhenwei | SequoiaCapitalChina | Director,generalmanager | October1,2010 | Yes | |
| GuoZhenwei | DeqingJiajunBeverageCo.,Ltd. | Director | April22,2015 | No | |
| GuoZhenwei | SichuanVanovNewMaterialCo.Ltd. | Director | December5,2017 | No | |
| GuoZhenwei | ShanghaiShouquanzhaiE-commerceCo.,Ltd. | Director | July13,2018 | No | |
| GuoZhenwei | LOHOHoldingInc. | Director | July2,2018 | No |
(Continued)
| Nameofstaff | Otherunitname | Positionheldinotherunit | Startdateoftenure | Enddateoftenure | Whethertoreceiveremunerationorallowanceinotherunit |
| GuoZhenwei | NewDynamicsChinaHoldingCompany | Director | September2,2019 | No | |
| GuoZhenwei | ShijiazhuangJunlebaoDairyCo.,Ltd. | Director | March16,2020 | No | |
| GuoZhenwei | LiumGroupCo.,Ltd. | Director | January14,2020 | No | |
| GuoZhenwei | HangzhouDahitiScience&TechnologyCo.,Ltd. | Director | May21,2020 | No | |
| GuoZhenwei | GenkiForestTechnologyGroupHoldingsLimited | Director | December1,2020 | No | |
| GuoZhenwei | ShanghaiRuishuElectronicCommerceCo.,Ltd. | Director | August26,2020 | No | |
| GuoZhenwei | ShanghaiWanwuyouyangCateringManagementCo.,Ltd. | Director | April8,2021 | No | |
| GuoZhenwei | ShanghaiHuaqiaoCateringManagementCo.,Ltd. | Director | July5,2021 | No | |
| GuoZhenwei | SichuanHaocaitouIndustrialCo.,Ltd. | Director | March30,2020 | No | |
| GuoZhenwei | PuchengDairy(Group)Co.,Ltd. | Supervisor | March12,2021 | No | |
| KeyKeLiu | SouthernUniversityofScienceandTechnology | CollegeDeanandChairProfessor | February19,2016 | Yes | |
| KeyKeLiu | PuritekCompanyLtd. | Director | January1,2019 | Yes | |
| KeyKeLiu | Carnegie–TsinghuaCenter | Director | January1,2015 | No | |
| KeyKeLiu | InternationalPittsburghCoalConferenceOrganization | Director | January1,2015 | No | |
| KeyKeLiu | ZhejiangUniversity | HonoraryProfessorandDoctorialtutor | January1,2014 | No | |
| KeyKeLiu | CenterforChinaandGlobalization | ViceChairman | January1,2012 | No | |
| PengJianfeng | RenminUniversityofChina | Professor | September1,1996 | Yes | |
| PengJianfeng | JinkoPowerTechnologyCo.,Ltd. | IndependentDirector | June29,2017 | Yes | |
| PengJianfeng | HyteraCommunicationsCorporationLimited | Director | December6,2019 | Yes | |
| PengJianfeng | CCBTrustCo.,Ltd. | Director | March25,2020 | Yes | |
| PengJianfeng | ChinaStoneManagementConsultingLtd. | Executivedirector | January12,2006 | No | |
| PengJianfeng | HunanHappyTimesNetworkTechnologyCo.,Ltd. | Director | December31,2015 | No | |
| PengJianfeng | SiwodEducationTechnologyCo.,Ltd. | Director | January17,2018 | No | |
| PengJianfeng | JiangxiSiwodCommercialDevelopmentCo.,Ltd. | Director | November18,2014 | No | |
| PengJianfeng | ChinaStone(Beijing)CorporationCultureManagementConsultingCo.,Ltd. | ExecutiveDirector,GeneralManager | November16,2004 | No | |
| PengJianfeng | BeijingChinaStoneHumanResourceConsultingCo.,Ltd. | Executivedirector | October30,2003 | No |
(Continued)
| Nameofstaff | Otherunitname | Positionheldinotherunit | Startdateoftenure | Enddateoftenure | Whethertoreceiveremunerationorallowanceinotherunit |
| PengJianfeng | HangzhouChinaStoneManagementConsultingCo.,Ltd. | Director | May6,2009 | No | |
| PengJianfeng | BeijingIceSmartTechnologyCo.,Ltd. | Director | June1,2012 | No | |
| PengJianfeng | BeijingChinaStoneHuntingNetworkTechnologyCo.,Ltd. | Supervisor | July9,2019 | No | |
| PengJianfeng | BeijingChinaStoneHumanResourcesManagementServicesCo.,Ltd. | Supervisor | April21,2016 | No | |
| PengJianfeng | Beijing51NewbieEducationTechnologyCo.,Ltd. | Supervisor | November13,2015 | No | |
| XieJiawei | DahuaCertifiedPublicAccountantsCo.,Ltd.ShenzhenBranch | Partner | May4,2010 | Yes | |
| XieJiawei | Han'sLaserTechnologyIndustryGroupCo.,Ltd. | IndependentDirector | June28,2017 | Yes | |
| WangYing | ShenzhenPureH2BTechnologyCo.,Ltd. | Director | January25,2018 | No | |
| WangYing | WinnerMedical(Heyuan)Co.,Ltd. | Supervisor | May18,2016 | No | |
| LiuHua | ShenzhenPurcottonTechnologyCo.,Ltd. | DirectorandVicePresident | January5,2015 | No | |
| ChenHuixuan | ChengduWinnerLikangMedicalProductsCo.,Ltd. | Director | May1,2018 | No | |
| Descriptionofservicestatusinotherunit | None | ||||
Punishmentofcurrentdirectors,supervisorsandseniormanagementoftheCompanyandthosewholeftduringthereportingperiodbysecuritiesregulatorsinrecentthreeyears?Applicable√Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedures,determinationbasisandactualpaymentofremunerationofdirectors,supervisorsandseniormanagementTheremunerationofdirectors,supervisorsandseniormanagersconsistsofwages,allowancesandbonuses.TheCompany'sboardofdirectorshasaremunerationandassessmentcommitteeresponsibleforformulatingperformanceevaluationstandards,procedures,systems,andmainschemesandrewardsandpunishments.Theremunerationplansofdirectors,supervisorsandseniormanagershaveallgonethroughthecorrespondingdeliberationproceduresinaccordancewiththeArticlesofAssociation,RemunerationManagementSystemandothercorporategovernancesystems.
Remunerationofdirectors,supervisorsandseniormanagementduringthereportingperiod
Unit:'0,000yuan
| Name | Position | Gender | Age | Statusofservice | TotalpretaxremunerationreceivedfromtheCompany | WhethertogetremunerationfromrelatedpartiesoftheCompany |
| LiJianquan | ChairmanandGeneralManager | Male | 66 | Incumbent | 368.92 | No |
| FangXiuyuan | Director,DeputyGeneralManager,ChiefFinancialOfficer | Male | 55 | Incumbent | 175.98 | No |
| XuXiaodan | Director | Female | 35 | Incumbent | 146.37 | No |
| GuoZhenwei | Director | Male | 39 | Incumbent | 0 | No |
| PengJianfeng | IndependentDirector | Male | 62 | Incumbent | 18 | No |
| XieJiawei | IndependentDirector | Female | 50 | Incumbent | 18 | No |
| KeyKeLiu | IndependentDirector | Male | 59 | Incumbent | 18 | No |
| ZhangTingting | ChairmanoftheBoardofSupervisors | Female | 37 | Incumbent | 66.54 | No |
| WangYing | Supervisor | Female | 41 | Incumbent | 103.49 | No |
| LiuHua | EmployeeRepresentativeSupervisor | Female | 50 | Incumbent | 133.46 | No |
| ZhangLi | Deputygeneralmanager | Female | 45 | Incumbent | 187.93 | No |
| ChenHuixuan | DeputyGeneralManager,SecretarytotheBoardOfDirectors | Female | 41 | Incumbent | 107.92 | No |
| Total | -- | -- | -- | -- | 1,344.61 | -- |
VIII.Performanceofdutiesbydirectorsduringthereportingperiod
1.BoardofDirectorsduringthereportingperiod
| Meetingsession | Conveningdate | Dateofdisclosure | Resolutionsofthemeeting |
| The5thmeetingoftheThirdBoardofDirectors | April8,2022 | April11,2022 | Deliberatedandapprovedthe“ProposalontheAcquisitionof55%EquityInterestInLongtermMedical” |
| The6thmeetingoftheThirdBoardofDirectors | April20,2022 | April22,2022 | Deliberatedandapprovedthe“Proposalonthe2021AnnualReportandItsAbstract”andothermatters |
| The7thmeetingoftheThirdBoardofDirectors | May17,2022 | May18,2022 | Deliberatedandapprovedthe“ProposalontheAcquisitionofControllingInterestinWinnerMedical(Hunan)Co.,Ltd.andtheIncreaseinCapital” |
| The8thmeetingoftheThirdBoardofDirectors | June2,2022 | June6,2022 | Deliberatedandapprovedthe“Proposalonthe2021CorporateSocialResponsibilityReport” |
| The9thmeetingoftheThirdBoardofDirectors | August16,2022 | August18,2022 | Deliberatedandapprovedthe“Proposalonthe2022Semi-AnnualReportandItsAbstract”andothermatters |
| The10thmeetingoftheThirdBoardofDirectors | October24,2022 | October25,2022 | Deliberatedandapprovedthe“ProposalontheQ32022Report” |
2.Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders
| Attendanceofdirectorsattheboardmeetingsandthegeneralmeetingofshareholders | |||||||
| NameofDirectors | Timesofattendingtheboardmeetingsduringthisreportingperiod | Timesofattendingtheboardmeetingsonsite | Timesofattendingtheboardmeetingsusingcommunication | Timesofattendingtheboardmeetingsbyproxy | Timesofabsencesfromtheboardmeetingsbyproxy | Whetherhehasnotattendedtwoconsecutiveboardmeetingsinperson | Timesofattendingthegeneralmeetingofshareholders |
| LiJianquan | 6 | 3 | 3 | 0 | 0 | No | 1 |
| FangXiuyuan | 6 | 3 | 3 | 0 | 0 | No | 1 |
| XuXiaodan | 6 | 3 | 3 | 0 | 0 | No | 1 |
| GuoZhenwei | 6 | 0 | 6 | 0 | 0 | No | 1 |
| PengJianfeng | 6 | 0 | 6 | 0 | 0 | No | 1 |
| XieJiawei | 6 | 0 | 6 | 0 | 0 | No | 1 |
| KeyKeLiu | 6 | 0 | 6 | 0 | 0 | No | 1 |
ExplanationofnotattendingtheboardmeetinginpersonfortwoconsecutivetimesN/A
3.Objectionsmadebydirectorsonrelevantmatters
WhetherthedirectorraisesanyobjectiontotherelevantmattersoftheCompany?Yes√NoDuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompany.
4.OtherdescriptionsoftheperformanceofdutiesbythedirectorsWhethertherelevantsuggestionsofthedirectortotheCompanyhavebeenadopted
√Yes?NoExplanationoftherelevantsuggestionsofthedirectortotheCompanyhaveorhavenotbeenadoptedDuringthereportingperiod,theCompany'sdirectorscouldfaithfullyanddiligentlyperformtheirdutiesinstrictaccordancewiththeCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,otherrelevantlawsandregulationsandtheArticlesofAssociation,activelyattendrelevantmeetingsontime,andseriouslydeliberatevariousproposalsBytelephone,email,sitevisitsandotherforms,theindependentdirectorskeptcommunicationwithotherdirectors,seniormanagementandrelatedpersonneloftheCompany,activelyacquiretheCompany'sproductionandoperationsituationandfinancialposition,putforwardpositivesuggestionsontheCompany'sdevelopmentstrategyandimprovementofcorporategovernance,andexpressedindependentopinionsontheCompany'speriodicreports,remunerationofdirectorsandseniormanagementandothermatters,guaranteeingthefairnessandobjectivityofthedecisionsmadebytheCompany'sBoardofDirectors.ThedirectorsoftheCompanyfulfilledtheirdutiesfaithfullyanddiligently,strovetosafeguardtheoverallinterestsoftheCompanyandthelegitimaterightsandinterestsofthemajorityofminorityshareholders,andplayedapositiveroleinthestandardizedoperationandhealthydevelopmentoftheCompany.
IX.SituationofspecialcommitteesundertheBoardofDirectorsduringthereporting
period
| Nameofcommittee | Members | Numberofmeetings | Conveningdate | Content | Importantcommentsandsuggestions | Performanceofotherduties | Detailsofobjection(ifany) |
| AuditCommitteeoftheThirdBoardofDirectors | XieJiawei,KeyKeLiuandFangXiuyuan | 1 | February7,2022 | 1.InternalAuditWorkReportforQ420212.InternalAuditWorkPlanforQ120223.SummaryReportofAuditCommitteeforQ42021 | Ensurethatthefinancialstatementstruly,accuratelyandcompletelyreflecttheCompany'soverallfinancialposition | ReviewtheCompany'sfinancialdataandrelatedwrittenreportsonsite | None |
| AuditCommitteeoftheThirdBoardofDirectors | XieJiawei,KeyKeLiuandFangXiuyuan | 1 | April8,2022 | 1.Proposalonthe2021AnnualReportandItsAbstract2.ProposalontheQ12022Report3.ProposalontheRenewaloftheAppointmentoftheAccountingFirmfortheYear20224.InternalAuditWorkReportforQ120225.InternalAuditWorkPlanforQ220226.AuditCommitteeWorkReportforQ12022 | Ensurethatthefinancialstatementstruly,accuratelyandcompletelyreflecttheCompany'soverallfinancialposition | ReviewtheCompany'sfinancialdataandrelatedwrittenreportsonsite | None |
| AuditCommitteeoftheThirdBoardofDirectors | XieJiawei,KeyKeLiuandFangXiuyuan | 1 | August12,2022 | 1.Proposalonthe2022Semi-AnnualReportandItsAbstract2.InternalAuditWorkReportforQ220223.InternalAuditWorkPlanforQ320224.AuditCommitteeWorkReportforQ22022 | Ensurethatthefinancialstatementstruly,accuratelyandcompletelyreflecttheCompany'soverallfinancialposition | ReviewtheCompany'sfinancialdataandrelatedwrittenreportsonsite | None |
| AuditCommitteeoftheThirdBoardofDirectors | XieJiawei,KeyKeLiuandFangXiuyuan | 1 | October21,2022 | 1.ProposalontheQ32022Report2.ProposalontheUseofPartofIdleProceedsforCashManagement3.InternalAuditWorkReportforQ320224.InternalAuditWorkPlanforQ420225.AuditCommitteeWorkReportforQ32022 | Ensurethatthefinancialstatementstruly,accuratelyandcompletelyreflecttheCompany'soverallfinancialposition | ReviewtheCompany'sfinancialdataandrelatedwrittenreportsonsite | None |
| StrategyandSocialResponsibilityCommitteeoftheThirdBoardofDirectors | LiJianquan,FangXiuyuan,XuXiaodan,GuoZhenweiandPengJianfeng | 1 | May30,2022 | Proposalonthe2021CorporateSocialResponsibilityReport | TheCompanyshallactivelyundertakesocialresponsibilityandpracticeenvironmentalprotectionconcept | Activelyfollowtheprogressofundertakingsocialresponsibilityandthepreparationprogressofthesocialresponsibilityreport | None |
| RemunerationCommitteeoftheThirdBoardofDirectors | PengJianfeng,XieJiaweiandLiJianquan | 1 | April18,2022 | 1.ProposalontheConfirmationoftheRemunerationofNon-IndependentDirectorsin20212.ProposalontheConfirmationoftheRemunerationofSeniorManagementin20213.ProposalontheRevocationofPartofGrantedRestrictedSharesNotYetVested | Ensurethatthesalarylevelisinlinewiththecompanyperformance | Understandtheformulationprocessoftheremunerationscheme | None |
X.WorkoftheBoardofSupervisors
DoestheboardofsupervisorsfindanyrisksinthesupervisionactivitiesoftheCompanyduringthereportingperiod?Yes√NoTheBoardofSupervisorshasnoobjectiontothesupervisorymattersduringthereportingperiodXI.CompanyEmployees
1.Numberofemployees,professionalcompositionandeducationalbackground
| Numberofemployeesintheparentcompanyattheendofthereportingperiod(person) | 1,965 |
| Numberofemployeesinmainsubsidiariesattheendofthereportingperiod(person) | 12,977 |
| Totalnumberofemployeesattheendofthereportingperiod(person) | 14,942 |
| Totalnumberofemployeesreceivingsalaryinthecurrentperiod(person) | 14,942 |
| Numberofretiredemployeeswhoseexpensesneedtobebornebytheparentcompanyandmajorsubsidiaries(person) | 45 |
| Professionalcomposition | |
| Professionalcompositioncategories | Numberofprofessionals(person) |
| Productionpersonnel | 7,491 |
| Salespersonnel | 3,733 |
| Technicalpersonnel | 1,588 |
| Financialpersonnel | 160 |
| Administrativepersonnel | 1,970 |
| Total | 14,942 |
| Educationbackground | |
| Educationbackgroundcategories | Number(person) |
| Master'sdegreeorabove | 206 |
| Bachelor | 1,898 |
| Bachelor'sdegreeorbelow | 12,838 |
| Total | 14,942 |
Productionpersonnel
ProductionpersonnelSalespersonnel
SalespersonnelTechnicalpersonnel
TechnicalpersonnelFinancialpersonnel
FinancialpersonnelAdministrativepersonnel
AdministrativepersonnelMasterdegreeorabove
MasterdegreeoraboveBachelor
BachelorBachelordegreeorbelow
BachelordegreeorbelowProfessionalcomposition
ProfessionalcompositionEducationbackground
2.PaypolicyMatchtheCompany'sstrategicintentandBPtargetupgradingstrategy,adjustfromtargetbonussystemtoperformancesharingsystem,enhanceteams'senseofacquisition,improvethesenseofresponsibilityandmissionofcoreandbackboneemployees,andimplementthebusinesspartnermechanism.Designaremunerationandincentivesystem,whichshouldbebuiltbasedonpositionrankingsystemandpost-valueassessment,keepthefixedsalaryinlinewiththemarketlevel,targetthe50th-75thpercentilessalaryforcoreandbackboneemployees,andbefavorableforemployeeswithexcellentperformance.Theremunerationschemefollowstheprincipleof“rankingbyposition,settingsalarybyranks,payingbyperformance,adjustingsalarybypostchanges”,andconductsevaluationanddistributionbasedonfinalcontributions.Highlightintegratedteamworkratherthansharingindividualcontributions,buildaclosedperformancemanagementmechanismfromstrategy,organizationtoindividuals,adoptabalancedscorecardfororganizationalperformance,andlinkindividualperformancetoorganizationalKPIs,whiletheperformanceresultscanbeusedasthebasisforbonusdistribution.Variablecompensationemploysthedistributionlogicofstockandexcessbonuses,withhighincentiveforexcessbusinessandsharedrevenue.Thedesignlogicencouragesambitious,high-qualityandhigh-efficiencygrowth,andpromotestheoverallpursuitofshort-andlong-termbenefits,buildingthecapacityofdaringtocompeteandbeingabletowin.Introducesupplementaryinsuranceontopofthebasicsocialinsurance,suchaspersonalaccidentinsuranceandsupplementalmedicalinsurance.TheCompanygraduallyimprovestheemployeewelfaresystem,startingfrombasicneedssuchas:transportationandcateringsubsidies,tohigher-levelneedssuchas:reunionandanniversarygifts,andprovidesvariousformsofwelfaretoenhanceemployees'senseofsecurity,happinessandidentity.
3.Trainingplan
TheCompanyputsforwardtheconceptof“high-quality,high-efficiency,high-performanceandhigh-returntalents”asthetargetsoftalentattractionandtraining.Itconstantlyupgradestalentstructure,enhancestalentteambuilding,improvestalentdensity,andcontinuestostrengthenthecapacitybuildingandtrainingofleadingtalentsandprofessionals.First,adual-channeldevelopmentmechanismandqualificationsystemhasbeensetup,encouragingprofessionalstoconductfurtherresearchandcreatevalueintheirareasofexpertisetomeettheCompany'sgrowingdemandforprofessionalcapacityenhancementandcaringofprofessionals,andpromotetalentspecializationanddiversification.Second,conducttalentinventorytoidentifypotentialoutstandingtalents,setbenchmarks,andimprovetalentdensityinthevalueplateau.Third,carryoutextensive“industry-university-researchcollaboration”,strengthencooperationandexchangewithuniversitiesandresearchinstitutions,continuouslyintroducetoptechnicaltalents,improvethecomprehensivequalityandprofessionalabilityoftalentteams,improveinnovationintechnologyR&Dtobeatrueinfluencerinthemedicalindustry.Fourth,taketheinitiativetobuildtraininganddevelopmentsystems,carryoutspecialtrainingonleadership,skillsforproductline/marketingline,costreductionandefficiency,teamleaders,corporatecultureinterpretationandpromotion,generalknowledge,etc.,allowingfortheempowermentofkeyareasandposts,talentdevelopment,andimprovementofgeneralistskillsinallareasofexpertiseavailablethroughoutthesystem.Finally,theCompanyattachesgreatimportancetothenewgenerationofemployees.Itsystematicallypromotesthetraininganddevelopmentofcollegestudents,includingcamptraining,assignmentofmentors,rotationalpractice,andfixed-termdevelopment.Thisformsaclosed-loopmanagementforthetraininganddevelopmentofyoungtalents,comprehensivelyimprovestheirmulti-dimensionaldevelopment,suchasculturalintegration,productknowledge,professionalskillsandprofessionalism,helpingthemtransformfromstudentsincampustoelitesinworkplace.Allkindsoftrainingsystems,coveringmanagement,professionalandgeneraltrainingsystems,havebeenpreparedforallprofessionalfields.Wefocusonannualstrategicplanningandcapacitybuildingofkeypositionsbyofferingspecialtraining.Internaltrainingandexternaltrainingcanbecombinedtoenrichtheexistingcurriculum.Moreover,theCompanyintegratesonlineplatformresourceswithofflinepracticalprojectstoproviderichtrainingresources,continuouslyiteratethecurriculumsystemaccordingtothedevelopmentandchangesofthebusiness,andkeeponexpandingthefacultytohelpbuildthetalentteamandimproveprofessionalcapabilities,tosupporttheachievementoftheCompany'sbusinessgoals.
4.Laboroutsourcing
?Applicable√Notapplicable
XII.Profitdistributionandsharecapitalincreasefromcapitalsurplus
Profitdistributionpolicyduringthereportingperiod,especiallytheformulation,implementationoradjustmentofcashdividendpolicy?Applicable√NotapplicableTheCompany'sprofitdistributionplanandcapitalsurplusconvertedintoasharecapitalplaninthereportingperiodareconsistentwiththerelevantprovisionsofthearticlesofassociationanddividendmanagementmeasures
√Yes?No?NotapplicableTheCompany'sprofitdistributionplanandcapitalsurplusconvertedintoasharecapitalplaninthereportingperiodconformtotherelevantprovisionsofthearticlesofassociation.Profitdistributionandsharecapitalincreasefromcapitalsurplusincurrentyear
| Bonussharesper10shares(shares) | 0 |
| Dividendper10shares(RMB)(taxincluded) | 19.00 |
| Increasesharesper10shares(shares) | 4 |
| Sharecapitalbaseindistributionplan(shares) | 419,737,649 |
| Amountofcashdividend(RMB)(includingtax) | 797,501,533.10 |
| Amountofcashdividendinotherforms(e.g.sharerepurchase)(RMB) | 242,041,693.07 |
| Totalcashdividends(includingothermethods)(RMB) | 1,039,543,226.17 |
| Distributiveprofit(RMB) | 4,868,449,855.81 |
| Proportionoftotalcashdividends(includingothermethods)intotalprofitdistribution | 100.00% |
| Thiscashdividends | |
| Others | |
| Detaileddescriptionoftheproposalofprofitdistributionorsharecapitalincreasefromaccumulationfund | |
| AccordingtotheAuditReportofWinnerMedicalCo.,Ltd.in2022issuedbyBDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLP,thenetprofitattributabletotheshareholdersoftheparentcompanyintheconsolidatedstatementsoftheCompanyin2022isRMB1,650,582,427.43,andthenetprofitoftheincomestatementoftheparentcompanyin2022isRMB1,854,821,524.21.AsofDecember31,2022,theparentcompany'sprofitavailablefordistributionisRMB4,868,449,855.81.InlinewiththeprincipleofrepayingshareholdersandsharingtheCompany'soperatingresultswithshareholders,takingintoaccountthereasonablereturnofinvestorsandthelong-termdevelopmentoftheCompany,andonthepremiseofensuringthenormalbusinessdevelopmentoftheCompany,theannualprofitdistributionplanfor2022isproposedasfollows:onthedateofdisclosureofthedistributionplan,thetotalcapitalstockoftheCompanyis426,492,308,ofwhich,6,754,659isheldinthespecialsecuritiesaccountforrepurchase.Basedonthecapitalstockof419,737,649afterdeductingtherepurchasedshares,itisplannedtodistributecashdividendsofRMB19.00(taxincluded)per10sharestoallshareholdersbythetransferof4sharesforevery10sharesexcludingbonusshares,withtotalcashdividendsofRMB797,501,533.10(accountingforabout48.32%inthenetprofitattributabletotheshareholdersoftheparentcompanyintheconsolidatedstatements).Afterimplementingtheaboveprofitdistributionplan,theremainingundistributedprofitoftheparentcompanyisRMB4,070,948,322.71,whichwillcontinuetoberetainedbytheCompanytosupporttheCompany'sbusinessdevelopment.Incaseofanychangefromthedisclosuretotheimplementationofthedistributionplanduetothelistingofnewshares,thegrantingandexercisingofequityincentive,theconversionofconvertiblebondsintoshares,sharerepurchase,etc.,theproportionwillbeadjustedaccordingtotheprinciplethattheproportionofcashdividendswillremainunchangedbutthetotalamountofcashdividendswillchange. | |
TheCompanymadeprofitsduringthereportingperiodandtheprofitsavailablefordistributiontoshareholdersoftheparentcompanywerepositive,butnodistributionplanforcashdividends.?Applicable√Notapplicable
XIII.ImplementationoftheCompany'sequityincentiveplan,employeestockownership
planorotheremployeeincentivemeasures
√Applicable?Notapplicable
1.ShareIncentive
TheCompanyheldthe15thmeetingoftheSecondBoardofDirectorsandthe9thmeetingoftheSecondBoardofSupervisorsonNovember27,2020,aswellasthe6thExtraordinaryGeneralMeetingofShareholders2020onDecember15,2020,respectively,deliberatedandapprovedthe“Proposalonthe2020RestrictedStockIncentivePlan(Draft)andItsAbstract”andrelatedmatters.TheGeneralMeetingofShareholdersauthorizedtheBoardofDirectorstodeterminethegrantdateofrestrictedshares,andrelevantmatterswhichisnecessarytograntrestrictedsharestotheincentiveobjectandgothroughtheproceduresforgrantingrestrictedshareswhentheincentiveobjectmeetstheconditions.Fordetails,pleaserefertorelevantannouncementsdisclosedbytheCompanyonCNINFO.com(http://www.cninfo.com.cn)onDecember16,2020andNovember30,2020.OnDecember18,2020,theCompanyheldthe17thmeetingoftheSecondBoardofDirectorsandthe11thmeetingoftheSecondBoardofSupervisorsrespectively,deliberatedandapprovedthe“ProposalontheMattersRelatedtotheAdjustmentof2020RestrictedSharesIncentivePlan”andthe“ProposalontheFirstGrantofRestrictedSharestotheIncentiveObjects”,anddeterminedthatDecember18,2020willbethegrantdateoftheincentiveplan,5.833millionrestrictedshareswillbegrantedto1,036eligibleincentiveobjects.Fordetails,pleaserefertorelevantannouncementdisclosedbytheCompanyonCNINFO.com(http://www.cninfo.com.cn)onDecember22,2020.TheCompanyheldthe6thmeetingoftheThirdBoardofDirectorsandthe5thmeetingoftheThirdBoardofSupervisorsonApril20,2022,aswellastheAnnualGeneralMeetingofShareholders2021onMay13,2021,respectively,deliberatedandapprovedthe“ProposalontheRevocationofPartiallyGrantedRestrictedSharesNotYetVested”.3.366925milliongrantedbutunvestedrestrictedshareswererevoked,becausesomeincentiverecipientscouldnotmeettheincentiveconditionsduetotheirdemissionorholdingthepostofsupervisors,whiletheCompanyfailedtocompletetheincentiveassessmenttargetsfor2021.Fordetails,pleaserefertorelevantannouncementsdisclosedbytheCompanyonCNINFO.com(http://www.cninfo.com.cn)onApril22,2022.
Equityincentivegrantedtodirectorsandseniormanagement
√Applicable?Notapplicable
Unit:share
| Name | Position | Numberofstockoptionsheldatthebeginningoftheyear | Numberofnewstockoptionsgrantedduringthereportingperiod | Numberofexercisablesharesduringthereportingperiod | Numberofsharesexercisedduringthereportingperiod | Exercisepriceofsharesexercisedduringthereportingperiod(RMB/share) | Numberofstockoptionsheldattheendoftheperiod | Marketpriceattheendofthereportingperiod(RMB/share) | Numberofrestrictedsharesheldatthebeginningoftheperiod | Numberofsharesunlockedinthecurrentperiod | Numberofnewrestrictedsharesgrantedduringthereportingperiod | Grantpriceofrestrictedshares(RMB/share) | Numberofrestrictedsharesheldattheendoftheperiod |
| LiJianquan | Chairman,generalmanager | 0 | 0 | 0 | 0 | 0 | 0 | 71.5 | 80,000 | 0 | 0 | 0 | 40,000 |
| FangXiuyuan | Director,deputygeneralmanager,chieffinancialofficer | 0 | 0 | 0 | 0 | 0 | 0 | 71.5 | 50,000 | 0 | 0 | 0 | 25,000 |
| XuXiaodan | Director | 0 | 0 | 0 | 0 | 0 | 0 | 71.5 | 30,000 | 0 | 0 | 0 | 15,000 |
| ChenHuixuan | Deputygeneralmanager, | 0 | 0 | 0 | 0 | 0 | 0 | 71.5 | 30,000 | 0 | 0 | 0 | 15,000 |
| secretarytotheBoardofDirectors | |||||||||||||
| ZhangLi | Deputygeneralmanager | 0 | 0 | 0 | 0 | 0 | 0 | 71.5 | 40,000 | 0 | 0 | 0 | 20,000 |
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 230,000 | 0 | 0 | -- | 115,000 |
| Remark(ifany) | None | ||||||||||||
EvaluationmechanismandincentiveofseniormanagementTheCompanyhasestablishedatargetaccountabilityevaluationsystemforseniormanagementandanannualperformanceappraisalsystemforseniormanagementteams,examinedandevaluatedtheseniormanagementaccordingtotheexaminationandevaluationsystem,takingintoaccountthelong-termdevelopmentneedsoftheCompanyfromtheCompany'sbusinessperformance,individuallevelandscientificperspective
2.ImplementationofEmployeeStockOwnershipPlan
?Applicable√Notapplicable
3.OtherEmployeeIncentiveMeasures?Applicable√NotapplicableXIV.XIV.Establishmentandimplementationofinternalcontrolsysteminthereporting
period
1.Establishmentandimplementationofinternalcontrol
Duringthereportingperiod,theCompanyadheredtotherisk-orientedprinciple.ItcontinuallyimprovedandoptimizedtheCompany'sinternalcontrolsystemonthebasisofdailysupervisionandspecialsupervisionofinternalcontrolaccordingtotheBasicNormsofEnterpriseInternalControlanditssupportingguidelinesandotherinternalcontrolsupervisionrequirements,combinedwiththeinternalcontrolsystemandevaluationmethodstoconstantlyadapttothechangesintheexternalenvironmentandtherequirementsofinternalmanagement.Accordingtotheoperation,analysisandevaluationoftheinternalcontrolsystem,theCompanyeffectivelypreventedrisksinmanagementandpromotedtherealizationofinternalcontrolobjectives.
2.Detailsofsignificantinternalcontroldefectsdiscoveredduringthereportingperiod
?Yes√No
XV.ManagementandcontroloftheCompanyoveritssubsidiariesduringthe
reportingperiod
| Companyname | Integrationplan | Integrationprogress | Problemsencountered | Solutionstaken | Progress | Follow-upsolution |
| LongtermMedical | Buildandimprovethecorporategovernancestructuresfor | TheCompanysetsoutclearrequirementsthroughthe | None | N/A | N/A | N/A |
| WinnerMedical(Hunan) | subsidiaries,assigndirectors,supervisorsandfinancialofficerstothesubsidiaries,andappointgeneralmanagers.ClarifytheGeneralManagerResponsibilitySystemundertheGroup'scontrolstructure;formulateeffectiveplansforbusinessempowerment,controlandsynergyaccordingtothebusinessconditionsofsubsidiaries;improvetheefficiencyofcorporateoperations,andpromotethesubsidiaries'complianceaswellasorderly,steadydevelopment. | authorityandresponsibilityoperationmanualthat,formaterialmattersrelatedtocorporategovernancestructureandsystem,strategicplanning,investmentandfinancingactivities,assetleasingandtransfer,financialmanagement,humanresources,complianceandriskcontrol,informationtechnologyprojectsandotheroperationalactivities,subsidiariesshall,inaccordancewiththeauthorizationsystem,reporttotheCompanyforapprovalbeforeimplementation,andsubmitsuchmaterialmatterstotheCompany'sBoardofDirectorsforreviewandapprovalasperregulations. |
| WinnerGuilin | ||
| JunjianMedical |
XVI.Self-evaluationreportorauditreportofinternalcontrol
1.Internalcontrolself-evaluationreport
| Disclosuredateoffulltextofinternalcontrolevaluationreport | April25,2023 |
| Disclosureindexoffulltextofinternalcontrolevaluationreport | CNINFO.com(http://www.cninfo.com.cn) |
| TheproportionofthetotalassetsoftheunitincludedinthescopeofevaluationinthetotalassetsoftheCompany'sconsolidatedfinancialstatements | 98.47% |
TheproportionoftheoperatingincomeoftheunitincludedinthescopeofevaluationintheoperatingincomeoftheCompany'sconsolidatedfinancialstatements
| 91.24% | ||
| Defectidentificationstandard | ||
| Class | Financialreport | Non-financialreport |
| Qualitativestandard | Significantdefect:1)Thecontrolenvironmentisinvalid;2)Thedirectors,supervisorsandseniormanagementoftheCompanycommitfraudandcausesignificantlossesandadverseeffectstotheCompany;3)Thecertifiedpublicaccountantfindsthatthereismaterialmisstatementinthecurrentfinancialreport,whichisnotfoundbytheinternalcontrolintheprocessofoperation;4)ThesupervisionoftheCompany'sAuditCommitteeandtheinternalauditinstitutionovertheinternalcontrolisinvalid.Majordefects:1)Failuretoselectandapplyaccountingpoliciesinaccordancewithgenerallyacceptedaccountingprinciples;2)Noanti-fraudproceduresandcontrolmeasureshavebeenestablished;3)Thereisnocorrespondingcontrolmechanismestablishedornoimplementationofandnocorrespondingcompensatorycontrolfortheaccountingtreatmentofnon-routineorspecialtransactions;4)Thereareoneormoredefectsinthecontrolofthefinancialreportingprocessattheendoftheperiod,anditcannotreasonablyguaranteethepreparedfinancialstatementstoachievethetrueandaccurategoal.Commondefects:Otherinternalcontroldefectsthatdonotconstitutesignificantdefectsormajordefects. | Significantdefects:lackofdemocraticdecision-makingprocess;thedecision-makingprocessleadstomajorerrors,theimportantbusinesslackssystemcontrolorissystematicallyinvalid,andlackofeffectivecompensatorycontrol;thelossofmiddleandseniormanagersandseniortechniciansisserious;theresultsofinternalcontrolevaluation,especiallythesignificantdefects,havenotbeenrectified;othersituationsthathaveasignificantnegativeimpactontheCompany.Majordefects:democraticdecision-makingprocessexistsbutisnotperfect;thedecision-makingprocessleadstogeneralerrors;therearedefectsinimportantbusinesssystemsorsystem;thelossofbusinesspersonnelinkeypositionsisserious;theresultsofinternalcontrolevaluation,especiallythemajordefects,havenotbeenrectified;othersituationsthathavealargenegativeimpactontheCompany.Commondefects:thedecision-makingprocessisinefficient;thegeneralbusinesssystemsorsystemhasdefects;thelossof |
| businesspersonnelingeneralpositionsisserious;generaldefectshavenotbeenrectified. | |||
| Quantitativestandards | Significantdefects:1.potentialmisstatementofoperatingincome≥2%ofthetotaloperatingincomeintheconsolidatedfinancialstatement;2.potentialmisstatementoftotalprofit≥5%ofthetotalprofitintheconsolidatedfinancialstatement;3.potentialmisstatementoftotalassets≥2%ofthetotalassetsintheconsolidatedstatementMajordefects:1.1%oftheoperatingincomeintheconsolidatedfinancialstatement≤potentialmisstatementofoperatingincome＜2%oftheoperatingincomeintheconsolidatedfinancialstatement;2.2%ofthetotalprofitintheconsolidatedfinancialstatement≤potentialmisstatementofthetotalprofit<5%ofthetotalprofitintheconsolidatedfinancialstatement;3.1%ofthetotalassetsintheconsolidatedfinancialstatement≤potentialmisstatementoftotalassets<2%ofthetotalassetsintheconsolidatedfinancialstatement.Commondefects:1.potentialmisstatementofoperatingincome<1%ofthetotaloperatingincomeintheconsolidatedfinancialstatement;2.potentialmisstatementoftotalprofit<2%ofthetotalprofitintheconsolidatedfinancialstatement3.potentialmisstatementoftotalassets<1%ofthetotalassetsintheconsolidatedstatementWhenthepotentialmisstatementcausedbyaninternalcontroldefectaffectsmultipleindexes,thenatureofthedefectshallbedeterminedaccordingtotheprincipleofwhichislower. | Significantdefects:theamountoflossaccountedfor5%ormoreofthetotalprofitintheauditedconsolidatedfinancialstatementofthepreviousyear;Majordefects:theamountoflossaccountedfor2%(included)to5%ofthetotalprofitintheauditedconsolidatedfinancialstatementofthepreviousyear;Commondefects:theamountoflossislessthan2%ofthetotalprofitintheauditedconsolidatedfinancialstatementofthepreviousyear | |
| Numberofsignificantdefectsinfinancialreport | 0 | ||
| Numberofsignificantdefectsinnon-financialreport | 0 | ||
| Numberofmajordefectsinfinancialreport | 0 | ||
| Numberofmajordefectsinnon-financialreport | 0 | ||
2.Internalcontrolauditreportorauthenticationreport
N/A
XVII.Rectificationofself-inspectionproblemsinthespecialactionongovernanceof
listedcompanies
Notapplicable.
EnvironmentandSocialResponsibility
I.Majorenvironmentalissues
Whetherthelistedcompanyanditssubsidiariesarekeypollutantdischargingunitsannouncedbyenvironmentalprotectionauthorities
√Yes?NoEnvironmentalprotection-relatedpoliciesandindustrystandardsTheCompanystrictlycomplieswithenvironmentalprotectionrelatedlawsandregulationsinitsdailyproductionandoperation,includingtheEnvironmentalProtectionLawofthePeople'sRepublicofChina,theLawofPeople'sRepublicofChinaonEnvironmentalImpactAssessmentandProtection,theLawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople'sRepublicofChinaonPreventionandControlofEnvironmentalPollutionbySolidWaste,theWaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,theLawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalNoisePollution,RegulationsonAdministrationofPollutantDischargePermits,andtheMeasuresfortheManagementofAutomaticPollutionSourcesMonitoringandGuidelinesforAutomaticPollutionSourcesMonitoringandManagementTechnologyofHubeiProvince;andstrictlyimplementsrelevantnationalemissionstandards,includingtheDischargeStandardsofWaterPollutantsforDyeingandFinishingofTextileIndustry(GB4287-2012),theIntegratedWastewaterDischargeStandard(GB8978-1996),theIntegratedEmissionStandardofAirPollutants(GB16297-1996),theEmissionStandardofAirPollutantsforBoiler(GB13271-2014),theEmissionStandardsforOdorousPollutants(GB14554-1993),andtheEmissionStandardforIndustrialEnterprisesNoiseatBoundary(GB12348—2008).PollutantdischargepermitforenvironmentalprotectionAllsubsidiariesoftheCompanyhaveappliedfordischargepermitsinaccordancewithrelevanttechnicalspecifications,includingTechnicalSpecificationsfortheApplicationandIssuanceofPollutantPermit-GeneralRules(HJ942-2018),TechnicalSpecificationsfortheApplicationandIssuanceofPollutantPermit-TextileandDyeingIndustry(HJ861—2017),TechnicalSpecificationsfortheApplicationandIssuanceofPollutantPermit-Boiler(HJ953—2018),TechnicalSpecificationsfortheApplicationandIssuanceofPollutantPermit-GeneralWastewaterTreatingProcess(HJ1120—2020),Self-monitoringTechnologyGuidelinesforPollutionSources-GeneralRules(HJ819-2017),TechnicalSpecificationsforEnvironmentalManagementLedgerandEmissionPermitImplementationReportforPollutionSources-GeneralRules(Trial)(HJ944-2018),Self-monitoringTechnologyGuidelinesforPollutionSources-TextileandDyeingIndustry(HJ879-2017),andSelf-monitoringTechnologyGuidelinesforPollutionSources-ThermalPowerGenerationandBoiler(HJ820-2017).Thestatusofemissionpermitsforeachbranchandsubsidiaryisasfollows:
| Subsidiaries | Closingdate | Dateofregistrationandissuance | Validity | CertificateNo. | Remark |
| ChongyangPlantI | August12,2020 | August12,2020 | August11,2023 | 91421223732699160U003P | Registered |
| ChongyangPlantII | April28,2020 | April28,2020 | April27,2025 | 91421223732699160U001P | Registered |
| ChongyangPlantIII | April28,2020 | April28,2020 | April27,2025 | 91421223732699160U002w | Applied |
| WinnerMedical(Huanggang)Co.,Ltd. | September22,2020 | September22,2020 | September21,2023 | 91421100767435675X001V | Applied |
| May27,2021 | September22,2020 | September21,2023 | 91421100767435675X001V | Re-applied | |
| August27,2021 | September22,2020 | September21,2023 | 91421100767435675X001V | Changed | |
| WinnerMedical(Jiayu)Co.,Ltd. | August21,2020 | August21,2020 | August20,2023 | 914212217261049092001V | Applied |
| WinnerMedical(Jingmen)Co.,Ltd. | August27,2020 | August27,2020 | August26,2023 | 914208006158216140001P | Applied |
| June29,2021 | August27,2020 | August26,2023 | 914208006158216140001P | Changed | |
| March11,2022 | August27,2020 | August26,2023 | 914208006158216140001P | Re-applied |
(Continued)
| Subsidiaries | Closingdate | Dateofregistrationandissuance | Validity | CertificateNo. | Remark |
| WinnerMedical(Tianmen)Co.,Ltd. | August01,2020 | August06,2020 | August05,2023 | 914290067261112368001P | Applied |
| September1,2022 | August31,2022 | August30,2027 | 914290067261112368001P | Re-applied | |
| December13,2022 | August31,2022 | August30,2027 | 914290067261112368001P | Changed | |
| WinnerMedical(Wuhan)Co.,Ltd. | September1,2020 | September1,2020 | August31,2023 | 91420000MA48TD7BXB001V | Applied |
| July18,2022 | September1,2020 | August31,2023 | 91420000MA48TD7BXB001V | Changed | |
| YichangWinnerMedicalTextileCo.,Ltd. | April30,2020 | April30,2020 | April29,2025 | 91420583706860379K001W | Registered |
| WinnerGuilinLatexCo.,Ltd. | July27,2020 | July27,2020 | July26,2023 | 914503008988813841001U | Applied |
| March04,2022 | July27,2020 | July26,2023 | 914503008988813841001U | Re-applied | |
| July20,2022 | July27,2020 | July26,2023 | 914503008988813841001U | Changed | |
| WinnerMedical(Hunan)Co.,Ltd. | June05,2020 | June5,2020 | June4,2025 | 91430723565949803B001X | Firstregistration |
| May5,2022 | June5,2020 | June4,2025 | 91430723565949803B001X | Changeofregistration | |
| August27,2022 | June5,2020 | June4,2025 | 91430723565949803B001X | Changeofregistration | |
| ZhejiangLongtermMedicalTechnologyCo.,Ltd. | May29,2020 | May29,2020 | May28,2025 | 91330500051340478U001Z | Firstregistration |
| November11,2021 | May29,2020 | May28,2025 | 91330500051340478U001Z | Changeofregistration |
AdministrativelicenseforenvironmentalprotectionWinnerMedical(Chongyang)Co.,Ltd.:“Medicalabsorbentgauzeseriesproductline”obtainedtheEIAapprovalfromEnvironmentalProtectionBureauofChongyangCountyonSeptember21,2005,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofChongyangCountyonAugust22,2008;“theprojectofsterilepackagingandsterileproductionline”obtainedtheEIAapproval(ChongE.P.B[2013]No.07)fromEnvironmentalProtectionBureauofChongyangCountyonMarch29,2013,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofChongyangCountyonJune26,2014;“Qingshanplantconstructionproject”wentthroughtheenvironmentalimpactassessmentinJuly2014andobtainedEIAapprovalfromEnvironmentalProtectionBureauofChongyangCountyonNovember18,2015;thenew6390M2workshopproject”ofXianningWinnerMedical(Chongyang)Co.,Ltd.completedthedeclarationofregistrationformonMay17,2017.WinnerMedical(Jiayu)Co.,Ltd.:“Absorbentcottonprojectwithanannualproductionof800tons”obtainedtheEIAapprovalfromtheEnvironmentalProtectionBureauofJiayuCountyonMarch20,2013,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofJiayuCountyonSeptember20,2014.“WinnerPurcottonconstructionproject”obtainedEIAapproval(JiayuE.P.B.Letter[2014]No.083)fromtheEnvironmentalProtectionBureauofJiayuCountyonDecember25,2014,andpassedtheenvironmentalprotectionacceptanceaftercompletionoftheEnvironmentalProtectionBureauofJiayuCountyonSeptember28,2017.TheenvironmentalimpactassessmentreportoftheWinnerIndustrialPark(Jiayu)ProjectwasapprovedbyXianningEcologicalEnvironmentBureauonMarch15,2021(XianningE.E.B.Letter[2021]No.21),andconstructioniscurrentlyunderway.YichangWinnerMedicalTextileCo.,Ltd.:“Medicalgauzeprojectwithanannualoutputof90millionmeters”obtainedEIAapprovalfromtheEnvironmentalProtectionBureauofZhijiangCityonDecember19,2014,andpassedtheenvironmentalprotectionacceptanceaftercompletionoftheEnvironmentalProtectionBureauofZhijiangCityonOctober14,2015.
WinnerMedical(Tianmen)Co.,Ltd.:“Cottonspunlacednon-wovenfabricandmedicaldressingproductsproductionproject”obtainedtheEIAapproval(TianmenE.E.B.Letter[2015]No.35)fromEnvironmentalProtectionBureauofTianmenCityonMarch11,2015.Atpresent,phaseIoftheprojecthasbeencompletedandpassedtheenvironmentalprotectionacceptanceaftercompletionoftheEnvironmentalProtectionBureauofTianmenCityonJanuary25,2017;theindependentacceptanceofphaseIIwillbecompletedonMay10,2020.“ProductionLineAutomationUpgradingProjectofMedicalDressings”obtainedEIAapproval(TianmenE.E.B.Letter[2016]No.23)fromtheEnvironmentalProtectionBureauofTianmenCityonJanuary19,2016,andpassedtheindependentacceptanceonMarch23,2018.“MedicalProductsSterilizationCenterProject”receivedapprovalfromtheTianmenEcologicalEnvironmentBureauonJanuary17,2022(TianmenE.E.B.Letter[2022]No.4),andpassedtheindependentacceptanceoftheprojectonDecember31,2022.WinnerMedical(Jingmen)Co.,Ltd.:“30millionmetersperyearmedicalgauzebleachingandrefiningproductionlineexpansionproject”obtainedtheEIAapprovalfromEnvironmentalProtectionBureauofJingmenCityonOctober18,1999,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofJingmenCityonDecember14,2001;“renovationandexpansionprojectofgauzepad,gauzesheetandshrinkagebandage”obtainedtheEIAapprovalfromEnvironmentalProtectionBureauofJingmenCityonSeptember23,2003,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofDongbaoDistrict,JingmenCityonAugust3,2005;“degreasingandbleachingmedicalgauzeprojectwithannualproductionof1,500tons”obtainedtheEIAapprovalfromEnvironmentalProtectionBureauofDongbaoDistrict,JingmenCityonApril5,2006,andacceptedtheacceptancetogetherwiththeconstructionprojectofPurcottononSeptember27,2017;“WinnerPurcottonconstructionproject”obtainedtheEIAapproval(DongbaoE.P.B.Letter[2016]No.138)fromEnvironmentalProtectionBureauofJingmenCityonOctober19,2016,andpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofJingmenCityonSeptember27,2017;“theexpansionprojectofabsorbentgauzeproductionline”(PurcottonphaseIIexpansionproject)obtainedtheEIAapproval(JingmenE.E.B.Letter[2020]No.112)fromJingmenEcologicalEnvironmentBureauonDecember24,2020.WinnerMedical(Huanggang)Co.,Ltd.:“Cottonspunlacednon-wovenfabricproductionproject(phaseIandphaseII)”obtainedtheEIAapproval(HubeiE.P.D.Letter[2011]No.628)fromtheEnvironmentalProtectionDepartmentofHubeiProvinceonAugust5,2011;thephaseIprojectpassedtheenvironmentalprotectionacceptanceaftercompletion(HubeiE.P.D.Letter[2012]No.348)ofEnvironmentalProtectionDepartmentofHubeiProvinceonMay8,2012.ThePhaseIIprojectobtainedtheEIAapproval(HuanggangE.P.D.Letter[2015]No.304)fromEnvironmentalProtectionBureauofHuanggangCityonDecember31,2015,andthePhaseIprojectpassedtheenvironmentalprotectionacceptanceaftercompletionofEnvironmentalProtectionBureauofHuanggangCityonJanuary24,2017;“thenewprojectofPurcottondistributioncenter”obtainedtheEIAapproval(HuanggangE.P.D.Letter[2016]No.114)fromEnvironmentalProtectionBureauofHuanggangCityonJune27,2016,andtheindependentacceptanceoftheprojectwascompletedonOctober10,2018;the“boilertransformationproject”obtainedtheEIAapproval(HuanggangE.P.D.Letter[2018]No.20)fromEnvironmentalProtectionBureauofHuanggangCityonJanuary29,2018,andcompletedtheindependentacceptanceonNovember14,2019;the“foamcoiledmaterialproductionlineproject(expansion)”obtainedtheEIAapproval(HuanggangE.P.D.Letter[2018]No.26)fromEnvironmentalProtectionBureauofHuanggangCityonFebruary5,2018,andcompletedtheindependentacceptanceoftheprojectonOctober8,2018;the“constructionprojectofadvancedwounddressingproductionline”obtainedtheEIAapproval(HuanggangE.P.D.[2018]No.178)fromEnvironmentalProtectionBureauofHuanggangCityonNovember6,2018,andtheprojectiscurrentlyintheconstructionperiodandhasnotbeencompleted;the“upgradingandtransformationprojectofmedicalprotectiveproducts”obtainedtheEIAapproval(HuanggangE.P.D.[2020]No.109)fromHuanggangMunicipalBureauofEcologyandEnvironmentonJuly20,2020andcompletedtheindependentacceptanceonOctober19,2021.WinnerMedical(Wuhan)Co.,Ltd.:“HubeiWinnerMedicalCo.,Ltd.cottonspunlacednonwovensandproductsproductionproject”obtainedtheEIAapproval(NewApprovalLetter[2017]No.68)fromtheAdministrativeApprovalBureauofXinzhouDistrict,WuhanCityonJuly12,2017,andcompletedtheindependentacceptanceofphaseIonJanuary18,2020;“R&Dcenterconstructionproject”obtainedtheEIAapproval(NewApprovalLetter[2018]No.193)fromAdministrativeApprovalBureauofXinzhouDistrict,WuhanCityonDecember24,2018,buttheprojecthasnotstartedconstructionyet;“newelectronacceleratorirradiationdeviceproject”obtainedtheEIAapproval(WuhanE.P.B.Letter[2018]No.5)fromWuhanEnvironmentalProtectionBureauonJanuary15,2018.Theprojectwasconstructedintwophases.TheindependentacceptanceofphaseIwascompletedonMay15,2020andofphaseIIwascompletedonNovember19,2021.The“medicalprotectiveproductupgradingproject”environmentalimpactreportformwasapprovedbyAdministrativeApprovalBureauofXinzhouDistrictonMay7,2021,withtheapprovalnumberofNewApprovalLetter[2021]No.95.Theprojectisnotyetcompleted.“WinnerMedicalPhaseIIExpansionProject”wasapprovedbyWuhanEcologicalEnvironmentBureauandWuhanAdministrativeApprovalBureauonJune21,2022(WuhanE.P.XinzhouB.ApprovalLetter[2022]No.27),theprojectiscurrentlyunderconstruction.The“InnovationResearchInstituteConstructionProject”wasapprovedbyWuhanEcologicalEnvironmentBureauandWuhanAdministrativeApprovalBureauonAugust9,2022(WuhanE.P.XinzhouB.[2022]No.43),theprojectiscurrentlyunderconstruction.WinnerGuilinLatexCo.,Ltd.:“Productionlineexpansiontechnologytransformationprojectofmedicalgloves”wasapprovedbyAdministrativeApprovalBureauofGuilinCity(GuilinA.A.B.ApprovalLetter[2020]No.35)onDecember30,
2020,andpassedtheenvironmentalprotectionacceptanceinMarch2022.WinnerMedical(Hunan)Co.,Ltd.:“Off-siteproductionlineexpansionprojectofself-destructingsterile-caremedicaldeviceswithanannualoutputof300millionsetsofHunanPinganMedicalDeviceTechnologyCo.,Ltd.”wasapprovedbyEnvironmentalProtectionBureauofLiCountyonApril5,2005;thePhaseIIproductionlineexpansionprojectofself-destructingsterile-caremedicaldeviceswithanannualoutputof300millionsetswasapprovedbyEnvironmentalProtectionBureauofLiCounty(ChangdeE.E.B.Letter[2009]No.28)inApril2009;the“industrializationprojectofnewultrasonicozonetherapyequipment,probesandultrasonicozoneclearingandsterilizingtreatmentinstrument”wasapprovedbyEnvironmentalProtectionBureauofLiCounty(HunanEnvironmentRatingTable[2011]No.134)onDecember11,2011;andthePhaseIIIexpansionprojectwasapprovedbyChangdeEcologicalEnvironmentBureau(ChangdeE.E.B.Letter[2011]No.0623)onSeptember18,2021.TheprojectpassedtheindependentacceptanceinMay2022.ZhejiangLongtermMedicalTechnologyCo.,Ltd.:Medicalhygienematerialsanddressingswithanannualoutputof300millionpieces;disinfectantwithanannualoutputof5millionbottles;CategoriesIandIImedicalcaresuppliesandinfectioncontrolmedicalconsumableswithanannualoutputof15millionpieces,;sanitaryproductswithanannualoutputof10millionpacks/pieces;rehabilitationtherapyinstrumentsandequipmentwithanannualoutputof20,000sets/pieces;skincleansingandcareproductswithanannualoutputof100,000units/pieces;minimallyinvasivesurgicalconsumableswithanannualoutputof5.7millionsets/pieceswereapprovedbyHuzhouEcologicalEnvironmentBureauDeqingBranch(DeqingApprovalonEnvironmentRecord[2019]No.17)onMarch4,2019;whileiodophorcottonswabswithanannualoutputof
1.2billionpieces;disinfectantwithanannualoutputof35millionbottles;isolationgownswithanannualoutputof1millionsets;protectiveclothingwithanannualoutputof11millionsets;maskswithanannualoutputof350millionpieceswereapprovedbyHuzhouEcologicalEnvironmentBureauDeqingBranch(HuzhouE.E.B.DeqingLetter[2021]No.35)onJune15,2021,andpassedtheenvironmentalprotectionacceptanceinFebruary2022.Industryemissionstandardsanddetailsofpollutantemissionsinvolvedinproductionandoperationactivities
| Companyorsubsidiaryname | Categoryofmainpollutantsandcharacteristicpollutants | Namesofmainpollutantsandcharacteristicpollutants | Emissionmode | Numberofdischargeoutlets | Distributionofdischargeoutlets | Emissionconcentration/intensity | Pollutantemissionstandardsimplemented | Totalemissions | Totalemissionsapproved | Emissionsbeyondstandards |
| WinnerMedical(Chongyang)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 1 | Boilerdischargeoutlet | 6.2mg/m3,<3mg/m3,162mg/m3 | 20mg/m3,50mg/m3,200mg/m3 | NOX:2.473T,SO2:0.058T | NOX:13.28T/a,SO2:3.32T/a | Notexceedingthestandard |
| WinnerMedical(Chongyang)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Directdischarge | 1 | Sewagedischargeoutlet | 7.6,52mg/L,12.5mg/L,1.34mg/L,9mg/L | 6-9,80mg/L,20mg/L,10mg/L,50mg/L | COD:19.308T,NH3-N:0.408T | COD:57.6T/a,NH3-N:7.27T/a | Notexceedingthestandard |
| WinnerMedical(Jiayu)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 1 | Boilerdischargeoutlet | 8.3mg/m3,<3mg/m3,85mg/m3 | 20mg/m3,50mg/m3,200mg/m3 | NOX:2.809T,SO2:0.084T | NOX:unlicensed,SO2:unlicensed | Notexceedingthestandard |
| WinnerMedical(Jiayu)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Directdischarge | 1 | Sewagedischargeoutlet | 8.2,48mg/L,14.2mg/L,0.15mg/L,11mg/L | 6-9,100mg/L,20mg/L,15mg/L,70mg/L | COD:8.019T,NH3-N:0.073T | COD:34.29T/a,NH3-N:1.19T/a | Notexceedingthestandard |
| WinnerMedical(Huanggang)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 2 | 1#2#boilerdischargeoutlet | 10.6/8.0mg/m3,<3mg/m3,128/45mg/m3 | 20mg/m3,50mg/m3,200mg/m3 | NOX:12.452T,SO2:0.0133T | NOX:23.52T/a,SO2:unlicensed | Notexceedingthestandard |
(Continued)
| Companyorsubsidiaryname | Categoryofmainpollutantsandcharacteristicpollutants | Namesofmainpollutantsandcharacteristicpollutants | Emissionmode | Numberofdischargeoutlets | Distributionofdischargeoutlets | Emissionconcentration/intensity | Pollutantemissionstandardsimplemented | Totalemissions | Totalemissionsapproved | Emissionsbeyondstandards |
| WinnerMedical(Huanggang)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.8,74mg/L,14.8mg/L,1.07mg/L,10mg/L | 6-9,500mg/L,300mg/L,45mg/L,400mg/L | COD:61.216T,NH3-N:0.666T | COD:90T/a,NH3-N:13.5T/a | Notexceedingthestandard |
| WinnerMedical(Tianmen)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 1 | Boilerdischargeoutlet | 2.8mg/m3,<3mg/m3,100mg/m3 | 20mg/m3,50mg/m3,200mg/m3 | NOX:4.774T,SO2:0.123T | NOX:16.235T/a,SO2:4.059T/a | Notexceedingthestandard |
| WinnerMedical(Tianmen)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.6,64mg/L,19.2mg/L,1.18mg/L,16mg/L | 6-9,400mg/L,150mg/L,30mg/L,250mg/L | COD:16.118TNH3-N:0.379T | COD:132.52T/a,NH3-N:16.57T/a | Notexceedingthestandard |
| WinnerMedical(Wuhan)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | / | / | / | / | / | Noboiler,nolicense | Notexceedingthestandard |
| WinnerMedical(Wuhan)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,chromaticity | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.6,183mg/L,39.8mg/L,7.66mg/L,7 | 6-9,500mg/L,300mg/L,45mg/L,64 | COD:40.153T,NH3-N:2.963T | COD:61T/a,NH3-N:6.1T/a | Notexceedingthestandard |
| WinnerMedical(Jingmen)Co.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 1 | Boilerdischargeoutlet | 1.9mg/m3,<3mg/m3,75mg/m3 | 20mg/m3,50mg/m3,150mg/m3 | NOX:1.939T,SO2:0.085T | NOX:10.83T/a,SO2:3.11T/a | Notexceedingthestandard |
| WinnerMedical(Jingmen)Co.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Indirectdischarge | 1 | Sewagedischargeoutlet | 8.1,43mg/L,7.0mg/L,0.54mg/L,12mg/L | 6-9,200mg/L,50mg/L,20mg/L,100mg/L | COD:10.530T,NH3-N:1.053T | COD:19.48T/a,NH3-N:1.95T/a | Notexceedingthestandard |
| YichangWinnerMedicalTextileCo.,Ltd. | Gaseouspollutants | PM,SO2,NOX | / | 1 | Boilerdischargeoutlet | / | 20mg/m3,50mg/m3,150mg/m3 | Unlicensed | Unlicensed | 2022Outofservice |
(Continued)
| Companyorsubsidiaryname | Categoryofmainpollutantsandcharacteristicpollutants | Namesofmainpollutantsandcharacteristicpollutants | Emissionmode | Numberofdischargeoutlets | Distributionofdischargeoutlets | Emissionconcentration/intensity | Pollutantemissionstandardsimplemented | Totalemissions | Totalemissionsapproved | Emissionsbeyondstandards |
| YichangWinnerMedicalTextileCo.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.6,131mg/L,39.3mg/L,12.5mg/L,45mg/L | 6-9,500mg/L,300mg/L,45mg/L,400mg/L | Unlicensed | Unlicensed | Notexceedingthestandard |
| WinnerGuilinLatexCo.,Ltd. | Liquidpollutants | PH,COD,BOD,NH3-N,SS | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.4,54mg/L,16mg/L,4.2mg/L,110mg/L | 6-9,300mg/L,80mg/L,30mg/L,150mg/L | Unlicensed | Unlicensed | Notexceedingthestandard |
| WinnerMedical(Hunan)Co.,Ltd. | Liquidpollutants | Residualchlorine | Indirectdischarge | 1 | Sewagedischargeoutlet | 0.2mg/L | - | Unlicensed | Unlicensed | Notexceedingthestandard |
| ZhejiangLongtermMedicalTechnologyCo.,Ltd. | Liquidpollutants | PH,COD,NH3-N | Indirectdischarge | 1 | Sewagedischargeoutlet | 7.3,300mg/L,0.195mg/L | 6-9,500mg/L,45mg/L | Unlicensed | Unlicensed | Notexceedingthestandard |
Processingofpollutants
1WinnerMedical(Jiayu)Co.,Ltd.
Itisakeywastewaterdischargeenterprise,andthewastewatermainlyincludesdomesticsewageandproductionwastewater.Domesticsewage(includingcanteenwastewater)isfirsttreatedinoilseparationtankandseptictank,andthenmixedwithproductionwastewatertoenterthesewagetreatmentstationintheplant.Thesewagetreatmentstationadopts“hydrolysisacidification+biologicalcontactoxidationmethod”fortreatment,andthendischargedfromthedrainageoutletthroughpipelineafterreachingthestandard.Thewastewaterhasbeeninstalledwithon-linemonitoring.ThesewagetreatmentstationpassedtheenvironmentalprotectionacceptanceaftertheEnvironmentalProtectionBureauofJiayuCountywascompletedonSeptember28,2017,implementingthelimitvalueofDischargeStandardsofWaterPollutantsforDyeingandFinishingofTextileIndustry(GB4287-2012).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Solidwasteismainlydomesticwasteofemployees;impurities(cottonresidue,cottondustandcottonbatting)generatedintheproductionprocessandcottondustcollectedbydustremovalequipment;theleftovermaterialsproducedintheslicingprocess;sludgefromsewagetreatmentstation;thehazardouswastegeneratedischemicalmaterialpackagingbarrel.Forgeneralsolidwastes,disposalagreementsaresignedwithdisposalunits;forhazardouswastes,disposalagreementsaresignedwithqualifieddisposalunits.
WinnerMedical(Chongyang)Co.,Ltd.Itisakeywastewaterdischargeenterprise.Theproject'swastewatermainlyincludesdomestic,production,andexperimentalwastewater.Theproductionwastewaterisdischargedintothewastewatertreatmentstation(hydrolysisacidification+biologicalcontactoxidationmethod),andthetreatmentreachesthestandard;theexperimentalwastewaterishazardouswasteandhasbeenentrustedtoathirdpartycompanyfortreatment.Thedomesticsewageoftheemployeesandproductionwastewatergeneratedbytheenterprisearedirectlydischargedintothesewagetreatmentplantanddischargedafterreachingthestandard.Onlinewastewatermonitoringhasbeeninstalled,andthesewagestationcompletedindependentacceptanceonMarch20,2017,implementingthelimitvalueofDischargeStandardsofWaterPollutantsforDyeingandFinishingofTextileIndustry(GB4287-2012).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Solidwastemainlyincludesofficeanddomesticwasteofemployees,dust,leftovermaterialsandunqualifiedproductsproducedinproduction.Fordomesticwasteandgeneralsolidwaste,disposalagreementsaresignedwithdisposalunits,andforhazardouswaste,entrustmentagreementsaresignedwiththirdparties.
3YichangWinnerMedicalTextileCo.,Ltd.:
Noproductionwastewaterdischarge,domesticwastewaterentersthemunicipalpipenetwork,andcleanenergynaturalgasisusedasfuel.Thegasboilerwasdecommissionedin2022.
WinnerMedical(Tianmen)Co.,Ltd.Itisakeywastewaterdischargeenterprise.Thewastewatermainlycomesfromtheproductionwastewaterproducedbythedegreasingandbleachingworkshopandthedomesticsewageintheplantarea.ThemainpollutantsarepH,COD,suspendedsolidsandBOD5.Theproductionwastewaterisdischargedtothesewagetreatmentstation(hydrolysisacidification+biologicalcontactoxidationmethod),andthetreatmentreachesthestandard;domesticsewageentersthesewagetreatmentstationandistreatedwiththeproductionwastewater.Onlinemonitoringofwastewaterhasbeeninstalled,andthephaseIprojectofthesewagestationcompletedindependentacceptanceonMarch23,2018,implementingthelimitvalueofDischargeStandardsofWaterPollutantsforDyeingandFinishingofTextileIndustry(GB4287-2012).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Treatmentagreementsaresignedwithdisposalunitsforgeneralsolidwasteanddomesticwaste.Hazardoussolidwasteismainlychemicalmaterialpackagingbarrels,whichrawmaterialsuppliersrecycle,andnohazardouswasteistransferredfordisposal.5WinnerMedical(Jingmen)Co.,Ltd.
Itisakeywastewaterdischargeenterprise,andthewastewaterdischargedbytheenterpriseismainlyproductionwastewateranddomesticsewage.Theproductionwastewatermainlycomesfromthescouringandbleachingprocess.ThePHvalueofthewastewaterisobviouslyalkalineandtheCODvalueishigh,butthereisnoharmfulpoisonoussubstanceinit.Thewastewaterisdischargedintotheself-builtsewagestation,treatedby“flocculationprecipitation+hydrolysisacidification+biologicalcontactoxidationmethod+biologicalaeratedfilter”,andthendischargedintothedownstreammunicipalsewageplant.Aftersimpletreatmentinseptictank,domesticsewagewillbetreatedinself-builtsewagestation.Thesewagestationhasbeenbuilt,onlinewastewatermonitoringhasbeeninstalled,andthepollutantdischargepermithasbeenobtained.Itistobeaccepted.ItimplementsthelimitvalueofDischargeStandardsofWaterPollutantsforDyeingandFinishingofTextileIndustry(GB4287-2012).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Fordomesticwasteandgeneralsolidwastes,disposalagreementsaresignedwithdisposalunits,andforhazardouswastes,transferagreementsaresignedwiththird-partydisposalunits.6WinnerMedical(Huanggang)Co.,Ltd.
Itisakeywastewaterdischargeenterprise,andthewastewaterdischargedbytheenterpriseismainlyproductionwastewateranddomesticsewage.Thewastewatermainlycomesfromspunlaceforming,degreasing/bleaching,andsoftwaterpreparationprocesses.Mostofthewastewaterfromspunlaceformingprocessisreusedforproductionafterbeingtreatedbywatertreatmentcirculationsystem,whileasmallpartofthewastewateraredischargedintotheself-builtsewagestationwiththatfromdegreasing/bleachingprocess,andthendischargedafterbeingtreatedby“hydrolysisacidification+biologicalcontactoxidation”andreachingthestandard.Aftersimpletreatmentinseptictank,domesticsewagewillbetreatedinself-builtsewagestation.Onlinemonitoringofwastewaterhasbeeninstalled,andthesewagestationpassedtheenvironmental
protectionacceptanceaftercompletionofEnvironmentalProtectionBureauofHuanggangCityonJanuary24,2017,implementingthelevelIIIstandardlimitinTable4ofIntegratedWastewaterDischargeStandard(GB8978-1996).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Thesolidwastesoftheprojectincludegeneralsolidwastes,othersolidwastesandhazardoussolidwastes.Thegeneralsolidwastesaremainlycottonimpurities,leftovermaterials,defectiveproducts,boilercoalcinders,sludgefromsewagetreatmentfacilities,etc.generatedintheproductionprocess.Othersolidwastesaredomesticwastesgeneratedfromofficeandlife.Amongthem,cottonimpurities,leftovermaterialsanddefectiveproductsaresoldforcomprehensiveutilization;afterthesludgeisdehydrated,itwillbetreatedbytheenvironmentalsanitationdepartmenttogetherwiththedomesticwaste.Hazardoussolidwastesaremainlychemicalwastepackagingbarrels,whichrawmaterialsuppliersrecycle,andthewasteoilisstoredintheplantarea,anddeliveredtoqualifiedunitsfordisposalafterreachingthetransportationvolume.7WinnerMedical(Wuhan)Co.,Ltd.Itisakeywastewaterdischargeenterprise.Theproject'swastewatermainlyincludespreparation,spunlaced,degreasing,bleaching,domesticwater,etc.Thewastewaterdischargeoftheprojectis2126.93t/dafterthecompletionofphaseI,4067.11t/dafterphaseII,and6004.5t/dafterphaseIII.Theprocesstreatsthewastewaterof“hydrolysisacidification+anaerobic+biologicalcontactoxidationmethod”.Onlinemonitoringofwastewaterhasbeeninstalled,andthephaseIprojectofthesewagestationcompletedindependentacceptanceonJanuary7,2020,implementingthelevelIIIstandardlimitinTable4ofIntegratedWastewaterDischargeStandard(GB8978-1996).Thesewageplantwereconcretestructureswithaservicelifeof20years,andtheenvironmentalprotectionequipmenthasaservicelifeof10years.Thesolidwastesoftheprojectaremainlydividedintogeneralsolidwastes,othersolidwastesandhazardoussolidwastes.Amongthem,cottonimpurities,leftovermaterials,defectiveproductsandfiberdustarepurchasedandrecycled,andtheenvironmentalsanitationdepartmentdisposessludgeanddomesticwaste.AccordingtotheStandardforPollutionControlonHazardousWasteStorage(GB18597-2001),thetemporarystorageroomofhazardouswasteshallbeconstructedandthehazardouswasteshallbestoredasrequired.Meanwhile,thedailymanagementofhazardouswasteshouldbestrengthened.Disposalagreementsforallhazardouswastearesignedwiththequalifiedunits.8WinnerGuilinLatexCo.,Ltd.Thewastewateroftheprojectmainlyincludesmoldcleaningwastewater,leachingwastewater,soakingwastewaterandequipmentcleaningwastewater,andtheproductionwastewatercontainsgum,insolublecoagulantandimpuritiesinotherrawandauxiliarymaterials,whicharepretreatedandremovedbeforeenteringthecomprehensivewastewatertreatmentstationintheplant.Theexistingthree-stageseptictanktreatsthedomesticwastewaterofemployeesandthenentersthecomprehensivesewagetreatmentstationtogetherwiththepretreatedproductionwastewater.Thecompany'sintegratedwastewatertreatmentstationadoptsairflotation+filtrationprocess,anddischargesthetreatedwastewaterintothemunicipalwastewatertreatmentplant.Theexhaustgasfromcompoundpreparation,pre-vulcanizationtank,latexparkingtank,latexdippingdryingandpost-vulcanizationiscollectedanddischargedaftertreatmentbyexhaustgastreatmentsystem(waterspray+dehumidification+activatedcarbonadsorption).Generalindustrialsolidwasteiswasterubber,unqualifiedproducts,wastepackagingshallbetakenupbythelatexsupplierforregularrecycling,sludgeanddomesticwasteshallbetakenupbythelocalsanitationdepartmentforunifiedcleaninganddisposal.Hazardouswastesarewasteresinandwasteactivatedcarbon.Theyshallbecollectedcentrallyandentrustedtounitswithcorrespondinghazardouswastetreatmentqualificationsfordisposal.
WinnerMedical(Hunan)Co.,Ltd.Asmallamountofproductionwastewateranddomesticsewageisdischarged,amongwhichproductionwastewatermainlyincludescleaningwastewater,workshopcleaningwastewater,ethyleneoxideexhaustabsorptionwastewaterandpurewaterpreparationwastewater.Thewastewater,includingthecleaningwastewaterandworkshopcleaningwastewatertreatedbysedimentationtank,theethyleneoxideexhaustabsorptionwastewatertreatedbyadsorptionmethod,andthecanteenwastewaterpretreatedbygreasetrap,willbedischargedtoseptictankfortreatment,andtoLiCountyWastewaterTreatmentPlantforfurthertreatmentthroughmunicipalpipelinenetwork.Thewastegas,includingtheInjectionmoldingwastegas,organicwastegasvolatilizedfromprintingprocess,andorganicwastegasfrombonding,willbecollectedandtreatedbylyesprayingtower,andthensenttotheUVphotolysis+activatedcarbonadsorptiondevicefortreatment.Aftertreatment,thewastegaswillbedischargedthrougha15mexhaustpipe.Thegeneralindustrialsolidwasteconsistsofwastefabricandwastepackagingmaterials,whicharecollectedandrecycled
bythematerialcompanyforcomprehensivepurposes.Hazardouswastesarewasterawmaterialdrums,wasteactivatedcarbon,wastemineraloil,wasteUVphotolysislampsandwasteadsorbent,whicharecollectedcentrallyafterclassificationanddisposedofbyunitsentrustedwiththecorrespondinghazardouswastetreatmentqualification.10ZhejiangLongtermMedicalTechnologyCo.,Ltd.Cleaningwastewater,concentratedwaterforpurewaterpreparationanddomesticsewagearedischarged.Theseptictankinthefactorypretreatsdomesticsewage,andthenpipedtoDeqingHengfengSewageTreatmentCo.,Ltdforcentralizedtreatmentwiththeconcentratedwaterforpurewaterpreparationanddomesticsewage.Processexhaustgasistreatedbyonephoto-oxidationcatalytictreatmentequipmentsetandthendischargedthrougha15mexhaustfunnel.Processdustistreatedby1setofclothbagdustcollectorsandthendischargedthrougha15mexhaustfunnel.Thesolidwastesaremainlythewastefromthedailylifeofemployeesandsolidwastesfromthecanteenaredisposedofbysanitationdepartment,thetrimmingsanddefectiveproductsgeneratedintheproductionprocess,wastepackagingbagsgeneratedfromrawandauxiliarymaterialsaresoldtomaterialrecyclingcompanies;hazardouswastesarewasteactivatedcarbongeneratedintheprocessofwastegastreatmentandethyleneoxidewasteliquidgeneratedintheprocessofsterilization,whichisentrustedtocorrespondingqualifiedcompaniesfortreatment.EmergencyplanforenvironmentalemergenciesInordertofurtherimprovetheemergencymanagementsystemofenvironmentalpollutionaccidents,improvetheabilitytodealwithmajorenvironmentalpollutionaccidentstoensurethesafetyofproductionandoperation,improvetheabilityofemployeestodealwithaccidents,standardizetheCompany'semergencymanagementandcorrespondingemergencyprocedures,andimplementemergencyrescueworkinatimelyandeffectivemanner,preventandreducetheoccurrenceofaccidentstothegreatestextent,branchesandsubsidiariesofWinnerMedicalCo.,Ltd.havesetupanenvironmentalaccidentemergencyleadinggroupandformulatedtheEmergencyPlanforEnvironmentalAccidents.Environmentalself-monitoringschemeAllcompanieshaveappliedfordischargepermits,ofwhichtheself-monitoringprogramsareformulatedinaccordancewiththerelevantindustrynorms.Pollutantsaremainlydetectedthroughacombinationofmanuallaboratorytests+commissionedmonitoring+onlinemonitoring.Theonlinemonitoringsystemsofthesubsidiariesinvolvedintheonlinemonitoringofproductionwastewaterdischargearenetworkedwithgovernmentauthoritiesforreal-timemonitoring,andtheonlinemonitoringequipmentisentrustedtoaprofessionalthird-partycompanyforoperationandmaintenance.Commissionedmonitoringandmanualmonitoringprojectsareimplementedaccordingtotherequirementsofthemonitoringprogram,andthemonitoringresultsarereleasedinatimelymannerontheprovincialpollutantplatform.Self-monitoringschemeofeachcompanyismadepubliconthenationalpollutantdischargepermitmanagementplatform.InvestmentinenvironmentaltreatmentandprotectionandrelatedinformationonpaymentofenvironmentalprotectiontaxInFY2022,theamountofenvironmentalprotectiontaxpaidbytheCompanyanditssubsidiariesaccountedfor151,000yuan.Measurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffects
√Applicable?NotapplicableTheCompanyconductsmonthlystatisticalanalysisofcarbonemissionsofitssubsidiaries.Acarbonemissionmanagementsystemhasbeenestablished,andcarbonfootprintaccountingforsomeproductsarecarriedout.Administrativepenaltiesimposedduetoenvironmentalissuesduringthereportingperiod
| Companyorsubsidiaryname | Reasonsforpenalty | Violations | Punishment | Impactsontheproductionandoperationoflistedcompanies | RectificationmeasuresoftheCompany |
| N/A | N/A | N/A | N/A | N/A | N/A |
OtherenvironmentalinformationthatshouldbedisclosedNoneOtherinformationrelatedtoenvironmentalprotection
NoneTheCompanyneedstocomplywiththedisclosurerequirementsofthe“TextileandApparelBusiness”stipulatedintheNo.3GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-IndustryInformationDisclosure.InformationonenvironmentalaccidentsoflistedcompaniesNA
II.SocialresponsibilityWinnerMedicalupholdsthevisionsof“caringforhealthandlife,makingabetterworld”and“PurcottonChangestheWorld”,andtakestheinitiativetodiscloseitssocialresponsibilityeffortsthankstotheleadershipofitsStrategyandSocialResponsibilityCommittee,identifyingandanalyzingsubstantiveissuesrelatedtocorporatesocialresponsibilityinamorescientificmanner,soastostrengthenitssocialresponsibilitygovernancecapacitycontinuously.TheCompanylaysemphasisonsafeguardingthelegitimaterightsandinterestsofshareholders,employees,consumers,partners,governments,societyandotherstakeholders,andinsistsonworkingtogetherwithallpartiestocontributetothesustainabledevelopmentoftheenvironmentandsociety.
1.Productsandcustomerresponsibilities
Intermsofresearchandinnovation,theCompanyinsistsonempoweringproductionandoperationwithdigitalization,continuouslyimprovingindustrialautomation,andestablishingandperfectingthe“excellentproductionoperation”system.Intermsofgreenandhealthyproducts,theCompanyhasdevelopedandlaunchedthefirst100%biodegradablemasksandbiodegradablepaperpackaginginChina,andhasbeenactivelycarryingoutgreenpackaginginitiativeswiththe“ZeroPlasticPlan”asthecore.Inaddition,theCompanyalsoattachesimportancetotheresearchanddevelopmentofgreenandhealthyproducts.Itkeepsexpandingtheproductcategoriescoveredbytheenvironmentaldyeingprocess,whileincreasingtheuseoforganiccottoninitsproducts.Intermsofcustomerservice,theCompanyadvocatesthebusinessprincipleof“qualitybeforeprofit”,alwaysputtingcustomerperceptionfirstandwinningcustomersbyprovidingthemwithqualityproductsandservices.Meanwhile,forresponsiblemarketingandconsumereducation,theCompanyconductsdiversifiedpublicwelfarecampaignsforthegeneralpublic,includingthemessuchaspayingtributetohealthcareworkers,reducingtheuseofplasticpackaging,andreducingtheburdenontheglobalenvironment.
2.EnvironmentalhealthandsafetyresponsibilityIntermsofenergysavingandcarbonreduction,Purcotton,asubsidiary,hasconductedcarbonfootprintverificationfor100%purecottontissues,babyhandandmouthwettissues,babyrobesandotherproducts,andobtainedthestatementcertificateofISO14067productcarbonfootprintverification.ItisthefirstbrandinChinatoobtainSGSproductcarbonfootprintcertificationinthesamecategory.TheCompanyisfurtherexpandingtheuseofcleanenergysuchasphotovoltaic,optimizingenergyusestructure,andimprovingenergyefficiencythroughequipmentrenovationandotherapproaches.Inaddition,theCompanyalsofocusesongreenproductdevelopmentandproduction,aswellasgreenfactoryconstructionandcertification,aimingtoputitscorporateenvironmentalandsafetyresponsibilitiesintopractice.
3.Responsibilitiesofemployeesandcommunities
TheCompanycaresaboutemployees'career,andphysicalandmentalhealth,andtakesinitiativestoprovidevariouswelfareandtrainingprogramsforthem.In2022,theCompanycontinuedtodrivecomprehensive,healthydevelopmentofemployeesfromfoursegments,namely,“Win+energy”,“Win+honors”,“Win+caring”and“Win+Vitality”.Intermsofpublicwelfare,thecompanyhasalwaysadheredtothecoreprincipleof“socialvaluebeforecorporatevalue”,andcontinuestofulfillitscorporatesocialresponsibilityanddeliverthevalueofsocialwelfare.Tothisend,theCompanyhassetupthe“WinnerCaringAssociation”tocarryoutvariousdonationandsupportactivities.
III.Consolidatingandexpandingtheachievementsofpovertyalleviationandrural
revitalizationTheCompanyactivelyimplementedthemajorstrategicdeploymentofthenationalpovertyalleviationefforts.InFebruary2022,Purcotton,asubsidiary,togetherwiththeChinaWomen'sDevelopmentFoundation,ChinaWomen'sNewsandbrandspokespersonGuoJingjing'sstudio,wenttotheBaiguVillageinYunwuTown,GuidingCounty,QiannanPrefecture,GuizhouProvince,toprovidepracticalandeffectivecareandassistancetolocalwomenandchildren,donatingmaterialsworthmorethanRMB1.1million,includingreassuringpackages(incl.8,000piecesofmaternitykits,sanitarypads,andcottondiapers)andtwoMother'sHealthExpressvehicles.
ImportantMatters
I.Performanceinfulfillingcommitments
1.CommitmentsfulfilledwithinandnotfulfilledbytheendofthereportingperiodbytheCompany'sactual
controller,shareholders,relatedparties,acquirerandothercommitmentparties
√Applicable?Notapplicable
| Commitmentreason | Commitmentparty | Commitmenttype | Commitmentcontent | Commitmenttime | Timelimitforacceptance | Degreeofperformance |
| CommitmentmadeatthetimeofIPOorrefinancing | WinnerGroup,LiJianquan,XiePing,LiXiaoyuan | IPOlock-up | Within36monthsfromthedateoflistingandtradingoftheCompany'sshares,theCompanyshallnottransferorentrustotherstomanagethesharesdirectlyorindirectlyheldbytheCompanythathavebeenissuedbeforetheinitialpublicofferingoftheCompany'sshares,norshalltheCompanyrepurchasesuchshares | September17,2020 | 36monthsfromthedateoflistingoftheCompany'sshares | Inperformance |
| WinnerGroup,LiJianquan,XiePing,LiXiaoyuan,FangXiuyuan,XuXiaodan,LiuWeiwei,WangYing,ChenHuixuan | IPOreduction | 1.Ifthesharesheldarereducedwithintwoyearsafterthelock-upperiod,thereductionpriceshallnotbelowerthantheissueprice;2.Within6monthsafterthelistingoftheCompany,iftheclosingpriceoftheCompany'ssharesfor20consecutivetradingdaysislowerthantheissueprice(iftherightordividendisexcludedduringthisperiod,theissuepricewillbeadjustedaccordingly),ortheclosingpriceoftheCompany'ssharesislowerthantheissueprice(iftherightordividendisexcludedduringthisperiod,theissuepricewillbeadjustedaccordingly)attheendof6monthsafterthelisting(March17,2021,itwillbepostponedincaseofnon-tradingday),thelock-upperiodoftheissuersharesheldbytheCompanyisautomaticallyextendedfor6months | September17,2020 | Withintwoyearsaftertheexpirationofthelock-upperiod | Inperformance | |
| WinnerGroup,LiJianquan,XiamenLeyuan,SequoiaXinyuan | IPOreduction | TheCompanyguaranteesthatitwillabidebytherelevantlaws,regulations,departmentalrulesandnormativedocumentsinforceatthattimeonreducingshareholders'sharesofthelistedcompany.WhenreducingthesharesoftheCompanythatheldbytheenterpriseissuedpriortotheIPO,theenterprisewillinformtheCompanyinadvanceofthereductionintentionandthenumberofsharestobereducedinwrittenform,TheCompanyshallmakeanannouncementthreetradingdaysinadvance,exceptwhenthecorporatesharesheldbytheCompanyarelessthan5%. | September17,2020 | Long-termperformance | Inperformance | |
| WinnerMedical,WinnerGroup,LiJianquan | SharerepurchaseuponIPOfraudulentlisting | ThereisnofraudulentissuanceintheprocessofthispublicofferingandlistingonGEM;ifthesecuritiesregulatoryauthority,thestockexchangeorthejudicialauthoritydeterminesthattheCompanyhasfraudulentissuancebehavior,whichhasasignificantandsubstantialimpactonjudgingwhethertheissuermeetstheissuanceconditionsstipulatedbylaw,thesecuritiesregulatoryauthoritywillpunishtheCompany,thestockexchangeorthejudicialauthorityWithin5workingdaysfromthedatewhentheillegalfactsarefinallyconfirmedbythestockexchangeorthejudicialauthorityandothercompetentauthority,thestockrepurchaseplanshallbeformulatedinaccordancewiththerelevantlawsandregulationsandtheArticlesofAssociation,andallthenewsharesissuedandlistedshallberepurchased | September17,2020 | Long-termperformance | Inperformance | |
| WinnerMedical,WinnerGroup,Li | Commitmentto | Theprospectushasnofalserecords,misleadingstatementsormajoromissions.Weassumeindividual | September17, | Long-term | Inperform |
| Jianquan,FangXiuyuan,XuXiaodan,LiuWeiwei,WangYing,ChenHuixuan,YinWenling,BiQun,ZhouXiaoxiong,LiangWenzhao,GuoZhenwei,YeYangjing | assumecompensationliabilityaccordingtolaw | andjointlegalliabilitiesforitsauthenticity,accuracyandintegrity. | 2020 | performance | ance | |
| CommitmentmadeatthetimeofIPOorrefinancing | WinnerMedical,WinnerGroup,LiJianquan,FangXiuyuan,XuXiaodan,ChenHuixuan,YinWenling | CommitmenttostabilizetheCompany'ssharepriceinIPO | SupposethestockpriceoftheCompanyislowerthanthenetassetspersharewithinthreeyearsafterlisting.Inthatcase,theCompanyandtherelevantresponsiblepartiescanchoosetoimplementthefollowingmeasuresseparatelyorcomprehensivelytostabilizethestockpriceaccordingtotheactualsituationoftheCompanyandthestockmarketwhenthepreconditionsforstartingthemeasurestostabilizethestockpricearemet:1.TheCompanyrepurchasestheshares;2.ThecontrollingshareholdersandactualcontrollersincreasetheirholdingsoftheCompany'sshares;3.Non-independentdirectorsandseniormanagerswhoholdpostsandreceiveremunerationintheCompanyincreasetheirholdingsoftheCompany'sshares;4.Laws,administrativeregulations,normativedocumentsandothermethodsapprovedbyCSRC. | September17,2020 | 36monthsfromthedateoflistingoftheCompany'sshares | Inperformance |
| WinnerMedical | Measuresandcommitmentstomakeupforthedilutedimmediatereturn | Inordertoreducetheimpactofthedilutedimmediatereturnofthisissuance,wepromisetotakethefollowingmeasures:(I)acceleratetheinvestmentprogressoftheinvestmentprojectswithraisedfundsandstrivetoachievetheexpectedbenefitsoftheprojectassoonaspossible;(II)Strengthenthesupervisionofinvestmentprojectswithraisedfundstoensurethereasonableandlegaluseofraisedfunds;(III)Strengthentheoperatingmanagementandinternalcontrol,improvetheoperatingefficiencyandprofitability;(IV)Ensureasustainableandstableprofitdistributionsystemandstrengthenthereturnmechanismforinvestors | September17,2020 | Long-termperformance | Inperformance | |
| WinnerGroup,LiJianquan | Measuresandcommitmentstomakeupforthedilutedimmediatereturn | I/OurcompanyshallnotinterfereintheCompany'soperationandmanagementactivitiesbeyondmy/ourauthority,encroachontheCompany'sinterests,transferintereststootherunitsorindividualsfreeofchargeorunderunfairconditions,damagetheCompany'sinterestsinotherways,orusetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtomy/ourperformanceofduties.I/theCompanypromisestofully,completelyandtimelyperformmeasuresofmakingupforreturnestablishedbytheCompanyandanycommitmentonmeasuresofmakingupforreturn.IfI/ourcompanyviolatessuchcommitment,I/ourcompanyiswillingtobearcorrespondinglegalresponsibilityaccordingtolaw. | September17,2020 | Long-termperformance | Inperformance | |
| FangXiuyuan,XuXiaodan,ChenHuixuan,YinWenling,BiQun,ZhouXiaoxiong,LiangWenzhao,GuoZhenwei, | Measuresandcommitmentstomakeupforthedilutedimmediatereturn | 1.Shallnottransferintereststootherunitsorindividualsfreeofcharge,underunfairconditions,ordamagetheCompany'sinterestsinotherways.2.Restrictmydutyconsumptionbehaviorasadirector,supervisorandseniormanageroftheCompany.3.ShallnotusetheCompany'sassetstoengageininvestmentandconsumptionactivitiesunrelatedtomyperformanceofthedutiesofadirector,supervisorandseniormanager.4.ActivelypromotetheimprovementoftheCompany'ssalarysystem.5.WhenintroducingtheCompany'sequityincentivescheme(ifany),the | September17,2020 | Long-termperformance | Inperformance |
| vestingconditionsofequityincentiveshallbelinkedwithimplementingtheCompany'smeasurestomakeupforthereturn.6.IpromisethatIwillissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC,andactivelypromotetheCompanytomakenewprovisions.7.Ipromisetofully,completelyandtimelyperformmeasuresofmakingupforreturnestablishedbytheCompanyandanycommitmentIhavemadetomakeupforreturn. | ||||||
| CommitmentmadeatthetimeofIPOorrefinancing | WinnerMedical | Commitmentonprofitdistributionpolicy | Inordertobetterprotectthelegitimaterightsandinterestsofinvestors,theCompanydeliberatedandpassedtherevisedArticlesofAssociation(Draft)atthesecondextraordinarygeneralmeetingofshareholdersin2020.TheCompanydeterminesthedividendreturnplanforthenextthreeyears:onthepremisethatthenetprofitattributabletotheshareholdersoftheparentcompanyispositiveinthecurrentyear,theCompanywillmakeprofitdistributionatleastonceayear,andtheboardofdirectorsmayproposetheCompanytomakeinterimprofitdistributionaccordingtotheCompany'sprofitandcapitaldemand.TheCompanyshallprioritizecashdividendforprofitdistributionwhenitisundertheconditionsofcashdividend. | September17,2020 | 36monthsfromthedateoflistingoftheCompany'sshares | Inperformance |
| WinnerGroup,LiJianquan | Commitmentonavoidinghorizontalcompetition | 1.Asofthedateofthisletterofcommitment,ourcompany/IdonotandwillnotengageinorparticipateinthesameorsimilarbusinessandactivitiesastheCompany'smainbusinessinanyform,andwillnotengageinorparticipateinthesameorsimilarbusinessandactivitiesastheCompany'smainbusinessthroughinvestmentinothercompanies.2.Ourcompany/IundertakenottoengageinorparticipateinanybusinessoractivitiesthatarethesameorsimilartotheCompany'smainbusiness.3.IftheCompanyfurtherexpandsitsbusinessscopebasedonitsexistingbusiness,andotherenterprisesunderourcompany's/mycontrolatthattimehavealreadyproducedandoperatedthebusiness,theotherenterprisesunderourcompany's/mycontrolatthattimeshallselltherelevantbusiness,andtheCompanyhastheprioritytopurchasetherelevantbusinessunderthesamecommercialconditions.4.IncasethattheCompanyfurtherexpandsitsbusinessscopebasedonitsexistingbusinessscope,andtheotherenterprisescontrolledbytheCompany/Iatthattimehavenotyetcarriedoutproductionoroperationinthisregard,theotherenterprisescontrolledbytheCompany/IatthattimewillnotengageinthesameorsimilarbusinessandactivitiesassuchnewbusinessoftheCompany. | September17,2020 | Long-termperformance | Inperformance | |
| WinnerGroup,LiJianquan | Commitmenttoindemnityfortherecoveryofsocialsecurityaccumulationfund | ThesocialsecurityandhousingprovidentfundmanagementdepartmentsoftheCompanyanditsmajorsubsidiarieshaveissuedtheCertificate,confirmingthatfromJanuary1,2017toDecember31,2019,theCompanyanditssubsidiarieshavenorecordsofadministrativepunishmentforviolatinglawsandregulationsrelatedtolabor,socialsecurityandhousingprovidentfund.IfWinnerMedicalanditssubsidiariesarerequiredtomakeupthesocialinsurancepremiumorhousingprovidentfundthatshouldbepaidbyWinnerMedicalanditssubsidiariesfortheiremployeesorclaimedbytheiremployees,oriflitigation,arbitrationandadministrativepunishmentfromrelevantadministrativedepartmentsoccurtherefrom,ourcompany/Ishallunconditionallybearthefull | September17,2020 | Long-termperformance | Inperformance |
| amountofthefeesthatshouldbemadeupandbearthecorrespondingliabilityforcompensation,toensurethatWinnerMedicalanditssubsidiarieswillnotsufferanylossesasaresult.Thecontrollingshareholdersandthecompany'sactualcontroller,LiJianquan,arejointlyandseverallyliabletoeachother. | ||||||
| CommitmentmadeatthetimeofIPOorrefinancing | WinnerGroup,LiJianquan | CompensationcommitmentfordemolitionofYichangWinner'sproperties | ThelandandrealestateauthoritiesofYichangWinnerissuedacertificatetoconfirmthattherelevantsubsidiariesdidnotviolatelawsandrulesduringthereportingperiod;moreover,thetotalareaofthetwopropertiesaccountsforasmallproportionofthetotalareaoftheCompany'sanditssubsidiaries'properties.Evenifthereisariskofdemolition,itwillnotsignificantlyimpacttheproductionandoperationoftheCompanyanditssubsidiaries.Inresponsetotherelocationriskofthetwoproperties,thecontrollingshareholdersandtheactualcontrolleroftheissuercommit:“ifsuchpropertiesarerequiredtobedemolishedwithinatimelimitbythecompetentgovernmentdepartment,thecontrollingshareholdersandtheactualcontrolleragreetotimely,unconditionallyandfullycompensatealllossescausedtotheCompany.” | September17,2020 | Long-termperformance | Inperformance |
| WinnerMedical,WinnerGroup,LiJianquan,FangXiuyuan,XuXiaodan,LiuWeiwei,WangYing,ChenHuixuan,YinWenling,BiQun,ZhouXiaoxiong,LiangWenzhao,GuoZhenwei,YeYangjing | RestraintmeasuresforIPOfailuretoperformthecontract | Supposewefailtofulfilltherelevantcommitmentsdisclosedintheprospectus.Inthatcase,wewillpubliclyexplainthespecificreasonsforourfailuretofulfillthecommitmentsinthegeneralmeetingofshareholdersandtheinformationdisclosuremediadesignatedbytheCSRC,andapologizetoallshareholdersandpublicinvestors.Ifwefailtofulfilltherelevantpubliccommitments,theproceedswillbelongtotheCompany.SupposewecauselossestotheCompany,itsshareholders,orotherinvestorsduetoourfailuretofulfilltherelevantpubliccommitments.Inthatcase,wewillcompensatetherelevantlossestotheCompanyoritsshareholdersorotherinvestorsinaccordancewiththelaw.Atthesametime,weshallnottransfertheshares(ifany)oftheissuerdirectlyorindirectlyheldbyusduringtheperiodofassumingthecompensationaboveliability.Supposewefailtobeartheabovecompensationliability.Inthatcase,wewillstopreceivingsalary(ifany)within10daysaftertheoccurrenceoftheabovemattersuntilIfulfilltherelevantpubliccommitments.Ifwefailtofulfill,havebeenunabletofulfillorhavebeenunabletofulfillourcommitmentsontimeduetoobjectivereasonsbeyondourcontrol,suchaschangesofrelevantlawsandregulations,policy,naturaldisastersandotherexternalfactors,wewilltakethefollowingmeasures:(1)timelyandfullydisclosethespecificreasonswhywefailtofulfill,havebeenunabletofulfillorhavebeenunabletofulfillourcommitmentsontime;(2)PutforwardsupplementarycommitmentsoralternativecommitmentstotheCompany'sinvestors(relevantcommitmentsshallbesubjecttorelevantapprovalproceduresinaccordancewithlaws,regulationsandArticlesofAssociation),soastoprotecttherightsandinterestsofinvestorsasfaraspossible. | September17,2020 | Long-termperformance | Inperformance | |
| Whetherthecommitmentisfulfilledontime | No | |||||
2.IncasetheCompany'sassetorprojectsawearningexpectation,andthetermoftheearningexpectationstill
coversthereportingperiod,theCompanyshallmakeastatementabouttheassetorprojectfulfillingtheoriginalexpectationandthereasonsthereof?Applicable√NotapplicableII.Non-operatingoccupationoffundsoflistedcompaniesbycontrollingshareholders
andtheirrelatedparties?Applicable√NotapplicableNonon-operatingoccupationoffundsoflistedcompaniesbycontrollingshareholdersandtheirrelatedpartiesduringthereportingperiod.
III.Illegalexternalguarantee
?Applicable√NotapplicableNoillegalexternalguaranteeoftheCompanyduringthereportingperiod.IV.Statementoftheboardofdirectorsonthelatest“non-standardauditreport”
?Applicable√Notapplicable
V.StatementoftheBoardofDirectors,theBoardofSupervisorsandIndependent
Directors(ifany)onthe“non-standardauditreport”oftheaccountingfirm
duringthereportingperiod?Applicable√NotapplicableVI.StatementoftheBoardofDirectorsonaccountingpolicy,accountingestimate
changeorsignificantaccountingerrorcorrectioninthereportingperiod?Applicable√Notapplicable
VII.Explanationofchangesinthescopeofcombinedfinancialstatementswhen
comparedwithfinancialstatementsofthepreviousfiscalyear
√Applicable?NotapplicableFordetails,pleasereferto“SectionX.FinancialStatements\VIII.Consolidationscopechanges”
VIII.AppointmentofanddismissalofaccountingfirmsAccountingfirmcurrentlyappointed
| Nameofdomesticaccountingfirm | BDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLP |
| Remunerationofdomesticaccountingfirm(RMB10,000) | 230 |
| Continuousyearsofauditservicesofdomesticaccountingfirm | 9 |
| Nameofcertifiedpublicaccountantofdomesticaccountingfirm | ChengJin,WuLihong |
| Continuousyearsofauditservicesprovidedbycertifiedpublicaccountantsofdomesticaccountingfirm | 2 |
| Nameofoverseasaccountingfirm(ifany) | None |
| Remunerationofoverseasaccountingfirm(RMB10,000)(ifany) | 0 |
| Continuousyearsofauditservicesofoverseasaccountingfirm(ifany) | None |
| Nameofcertifiedpublicaccountantofoverseasaccountingfirm(ifany) | None |
| Continuousyearsofauditservicesprovidedbycertifiedpublicaccountantsofoverseasaccountingfirm(ifany) | None |
Hastheaccountingfirmbeenchanged??Yes√NoEngagementofinternalcontrolauditaccountingfirm,financialconsultantorsponsor?Applicable√NotapplicableIX.Delistingconfrontedupondisclosureoftheannualreport
?Applicable√Notapplicable
X.Bankruptcyreorganization?Applicable√NotapplicableNobankruptcyreorganizationoftheCompanyduringthereportingperiod.
XI.Majorlitigation,arbitrationmatters
√Applicable?Notapplicable
| Basicinformationoflitigation(arbitration) | Amountinvolved(RMB10,000) | Whethertoformestimatedliabilities | Progressoflitigation(arbitration) | Trialresultandinfluenceoflitigation(arbitration) | Implementationoflitigation(arbitration)judgment | Dateofdisclosure | Disclosureindex |
| WinnerMedicalv.People'sGovernmentofZijinCounty,arbitrationcaseofcontractdispute[CaseNo.:(2019)GanGuoZhongZiNo.095] | 55,565.53 | No | ThePeople'sGovernmentofZijinCountyhasnotyetpaidthefullamountofcompensationtotheCompanyinaccordancewiththeaward,andtheCompanyhasappliedtothecourtforenforcementandhasbeenacceptedbythecourt. | TherulingofCaseNo.:(2019)JiangxiNationalArbitrationLetterNo.095confirmedthattheoriginalInvestmentAgreementwasterminated,andthePeople'sGovernmentofZijinCountyhadtoreturnRMB3millionoflandtransferdeposittotheCompany,andcompensateforeconomiclossesofRMB550millionaswellasthelawyer'sfeesandlegalcosts.Theland,above-groundbuildings,equipmentandfacilitiesandrelevantsupportingmaterialsofHeyuanWinnerinvestmentandconstructionprojectwerehandedovertothePeople'sGovernmentofZijinCounty.TherewillbenoadverseimpactontheCompany. | Asofthedisclosuredateofthereport,theCompanyhasreceivedthelandtransferdepositofRMB3millionandcompensationofRMB328million(excl.thelawyer'sfeesandlegalcosts)returnedandpaidbythePeople'sGovernmentofZijinCounty.TheCompanyhashandedovertheprojectland,above-groundbuildings,equipmentandfacilitiesandrelevantsupportingmaterialstothePeople'sGovernmentofZijinCounty. | ||
| WinnerMedical(Tianmen),ShenzhenPurcotton,WinnerMedical(Huanggang)v.ChinaNationalIntellectualPropertyAdministration,administrativedisputecaseofpatentinvalidation | 0 | No | OnJune2,2020,theReexaminationandInvalidationDepartmentofthePatentOfficeofChinaNationalIntellectualPropertyAdministrationissuedtheDecisiononExaminationofInvalidationRequest,whichdecidedtodeclarethepatentrightof“productionmethodofcottonnon-wovenmedicaldressings”(PatentNo.ZL200510033147.1,validuntilFebruary6,2025)invalid.OnAugust26,2020,WinnerMedical(Tianmen),ShenzhenPurcotton,WinnerMedical(Huanggang)filedalawsuittoBeijingIntellectualPropertyCourtinaccordancewiththeprovisionsofthePatentLawforrevocationofthepatentinvalidationdecision.OnAugust28,2020,BeijingIntellectualPropertyCourtissuedtheNoticeofAcceptanceofAdministrative | Ifthelawsuitdoesnotsupporttheplaintiff'sclaim,thepatentisfinallyinvalid.ThereasonforthepatentinvalidationdecisionisnotthattheCompanyand/orthepatentinfringestherightsofothers.Therefore,theCompanycanstillusethetechnologyandwillnothaveasignificantadverseimpactonthenormalproductionandoperationofthecompany | N/A |
| Case.OnDecember27,2021,thecourtofthefirstinstancerejectedtheplaintiff'srequest.OnJanuary14,2022,theplaintifffiledarequestforasecondinstance.OnApril21,2022,thesecondtrialhasbeenheld.Asofthisreport'sdisclosuredate,thecourthasnotyetannouncedtheresultofthesecondtrial. | |||||
| SummaryofothersmalllawsuitsinwhichtheCompanyoritssubsidiariesareplaintiffsthatdonotmeetthecriteriafordisclosureofmateriallitigation | 8,029.93 | No | Inprogressaccordingtothelitigation/arbitrationprocess,somecaseshavenotyetbeenconcluded,andtheconcludedcasesareexecutedaccordingtotheprocess | NosignificantimpactsontheCompany'sproductionandoperation | Executedaccordingtolitigation/arbitrationprocess |
| SummaryofothersmalllawsuitsinwhichtheCompanyoritssubsidiariesaredefendantsthatdonotmeetthecriteriafordisclosureofmateriallitigation | 2,318.77 | No | Inprogressaccordingtothelitigation/arbitrationprocess,somecaseshavenotyetbeenconcluded,andtheconcludedcasesareexecutedaccordingtotheprocess | NosignificantimpactsontheCompany'sproductionandoperation | Executedaccordingtolitigation/arbitrationprocess |
XII.Punishmentandrectification
?Applicable√NotapplicableNopunishmentorrectificationoftheCompanyduringthereportingperiod.XIII.CreditconditionsoftheCompany,itscontrollingshareholdersandactual
controllers?Applicable√Notapplicable
XIV.Majorrelatedtransactions
1.Connectedtransactionsrelatedtodailyoperation?Applicable√NotapplicableTherewerenoconnectedtransactionsrelatedtotheCompany'sdailyoperationduringthereportingperiod.
2.Connectedtransactionsarisingfromtheacquisitionorsaleofassetsorequity
?Applicable√NotapplicableNoconnectedtransactionsarisefromthecompany'sacquisitionorsaleofassetsorequityduringthereportingperiod.
3.Connectedtransactionofjointforeigninvestments
?Applicable√NotapplicableNoconnectedtransactionsofjointforeigninvestmentoftheCompanyduringthereportingperiod.
4.Relatedcreditanddebttransactions
?Applicable√NotapplicableNorelatedclaimsanddebtsoftheCompanyduringthereportingperiod.
5.Transactionswithrelatedfinancecompanies
?Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyandthefinancecompanywithwhichitisaffiliatedandtherelatedparties.
6.TransactionsbetweenfinancecompaniescontrolledbytheCompanyandrelatedparties
?Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweenthefinancecompaniescontrolledbytheCompanyandrelatedparties.
7.Othermajorconnectedtransactions
?Applicable√NotapplicableNoothermajorconnectedtransactionsoftheCompanyduringthereportingperiod.
XV.Majorcontractsandtheirperformance
1.Trusteeship,contractingandlease
(1)Trusteeship?Applicable√NotapplicableNotrusteeshipoftheCompanyduringthereportingperiod.
(2)Contracting?Applicable√NotapplicableNocontractingoftheCompanyduringthereportingperiod.
(3)Lease
√Applicable?NotapplicableLeasedescriptionTheCompany'smajorleasedassetsareself-operatedstoreleases,allofwhichhavebeenrecognizedasright-of-useassetsinaccordancewiththerequirementsofthenewleasingstandards,andtherearenoothersignificantleasedassets.Fordetails,seeSection10.FinancialStatements\7.Notestoconsolidatedfinancialstatements\25.Right-of-useassets.Projectbringingtheprofitsorlossesmorethan10%ofthetotalprofitsoftheCompanyinthereportingperiodtotheCompany?Applicable√NotapplicableNoleaseprojectbringstheprofitsorlossesmorethan10%ofthecompany'stotalprofitsduringthereportingperiodtotheCompanyduringthereportingperiod.
2.Majorguarantee
?Applicable√NotapplicableNomajorguaranteesoftheCompanyduringthereportingperiod.
3.Entrustedcashassetmanagement
(1)Informationofentrustedfinancialmanagement
√Applicable?NotapplicableOverviewofentrustedfinancialmanagementduringthereportingperiod
Unit:'0,000yuan
| Specifictype | Sourceoffundsforentrustedfinancialmanagement | Amountincurredinentrustedfinancialmanagement | Outstandingbalance | Overdueamountnotrecovered | Theamountofimpairmentforoverduefinancialmanagement |
| Bankfinancialproducts | Proceeds | 234,367 | 49,300 | 0 | 0 |
| Bankfinancialproducts | Self-ownedfunds | 528,637.2 | 254,899.5 | 0 | 0 |
| Trustfinancialproducts | Self-ownedfunds | 144,000 | 134,000 | 0 | 0 |
| Total | 907,004.2 | 438,199.5 | 0 | 0 |
Specificcircumstanceofhigh-riskentrustedfinancingwithsignificantsingleamountorwithlowsecurityandpoorliquidity?Applicable√NotapplicableTheentrustedfinancingisexpectednottorecovertheprincipalorhasothercircumstancesthatmaycauseimpairment?Applicable√Notapplicable
(2)Informationofentrustedloans?Applicable√NotapplicableTheCompanyhadnoentrustedloanduringthereportingperiod.
4.Othermajorcontracts
?Applicable√NotapplicableNoothermajorcontractsoftheCompanyduringthereportingperiod.XVI.Descriptionofotherimportantevents
?Applicable√NotapplicableTheCompanyneedstoexplainnoothersignificantmattersinthereportingperiod.XVII.Majoreventsofsubsidiaries?Applicable√Notapplicable
ChangesinSharesand
Shareholders
I.ChangesinShares
1.Changesinshares
Unit:share
| Beforethischange | Increase/decrease(+,-) | Afterthischange | |||||||
| Quantity | Proportion | Newissueofshares | Sharedonation | Sharecapitalincreasefromreservedfunds | Others | Subtotal | Quantity | Proportion | |
| I.Restrictedshares | 290,438,848 | 68.10% | 56,475 | 56,475 | 290,495,323 | 68.11% | |||
| 1.Stateshareholding | |||||||||
| 2.Statelegalpersonshareholding | |||||||||
| 3.Otherdomesticholdings | 56,475 | 56,475 | 56,475 | 0.01% | |||||
| Wherein:domesticlegalpersonshareholding | |||||||||
| Domesticnaturalpersonshareholding | 56,475 | 56,475 | 56,475 | 0.01% | |||||
| 4.Foreignshareholding | 290,438,848 | 68.10% | 290,438,848 | 68.10% | |||||
| Wherein:foreignlegalpersonshareholding | 290,438,848 | 68.10% | 290,438,848 | 68.10% | |||||
| Foreignnaturalpersonshareholding | |||||||||
| II.Unrestrictedshares | 136,053,460 | 31.90% | (56,475) | (56,475) | 135,996,985 | 31.89% | |||
| 1.RMBcommonshare | 136,053,460 | 31.90% | (56,475) | (56,475) | 135,996,985 | 31.89% | |||
| 2.ForeignshareslistedinChina | |||||||||
| 3.Foreignshareslistedabroad | |||||||||
| 4.Others | |||||||||
| III.Totalamountofshares | 426,492,308 | 100.00% | 0 | 0 | 426,492,308 | 100.00% | |||
Causesforchangeinshares
√Applicable?NotapplicableSomedirectors,supervisorsandseniormanagersoftheCompanyincreasedtheirholdingsoftheCompany'ssharesthroughbiddingtransactionsinthesecondarymarketin2022,resultinginanincreaseof56,475restrictedsharesin2022.Approvalofchangesinshares?Applicable√NotapplicableTransferofsharechanges?Applicable√Notapplicable
InfluenceofsharechangesonthebasicEPS,dilutedEPS,netassetspershareattributabletocommonshareholdersoftheCompanyandotherfinancialindexesinthemostrecentyearandthemostrecentperiod?Applicable√NotapplicableOtherinformationtheCompanydeemsnecessaryorrequiredbythesecuritiesregulatoryauthoritiestodisclose?Applicable√Notapplicable
2.Changesinrestrictedshares
√Applicable?Notapplicable
Unit:share
| Shareholder'sname | Numberofrestrictedsharesatthebeginningoftheperiod | Numberofrestrictedsharesincreasedincurrentperiod | Numberofsharesreleasedfromrestrictedsaleincurrentperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonsforrestrictedsale | Thedateofliftingtherestrictedsale |
| WinnerGroupLimited | 290,438,848 | 0 | 0 | 290,438,848 | RestrictedsharesbeforeIPO | September17,2023 |
| FangXiuyuan | 0 | 30,000 | 0 | 30,000 | Shareslockedbydirectors,supervisorsandseniormanagement | Unlock25%ofthetotalnumberofsharesheldatthebeginningofeachyear,untilthenumberofshareshelddoesnotexceed1,000shares. |
| WangYing | 0 | 22,500 | 0 | 22,500 | Shareslockedbydirectors,supervisorsandseniormanagement | Unlock25%ofthetotalnumberofsharesheldatthebeginningofeachyear,untilthenumberofshareshelddoesnotexceed1,000shares. |
| ChenHuixuan | 0 | 3,975 | 0 | 3,975 | Shareslockedbydirectors,supervisorsandseniormanagement | Unlock25%ofthetotalnumberofsharesheldatthebeginningofeachyear,untilthenumberofshareshelddoesnotexceed1,000shares. |
| Total | 290,438,848 | 56,475 | 0 | 290,495,323 | -- | -- |
II.SecuritiesIssuanceandListing
1.Securitiesissuanceduringthereportingperiod(excludingpreferredshares)?Applicable√Notapplicable
2.ChangesinthetotalnumberofsharesandshareholderstructureoftheCompany,aswellasthechangesinthe
Company'sassetandliabilitystructure?Applicable√Notapplicable
3.Existinginternalemployeeshares
?Applicable√NotapplicableIII.ShareholdersandActualControllers
1.NumberandshareholdingoftheCompany'sshareholders
Unit:share
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 30,624 | Totalnumberofcommonshareholdersasoftheendofthepreviousmonthbeforethedisclosuredateoftheannualreport | 28,105 | Totalnumberofpreferredshareholderswithvotingrightsrestoredattheendofthereportingperiod(ifany)(seeNote9) | 0 | Totalnumberofpreferredshareholderswithvotingrightsrestoredasoftheendofthepreviousmonthbeforethedisclosuredateoftheannualreport | 0 | Totalnumberofshareholdersholdingspecialvotingshares(ifany) | 0 | |||||||
| Shareholdingofstockholderswithmorethan5%ofthesharesorthetop10shareholders | ||||||||||||||||
| Shareholder'sname | Shareholdernature | Shareholdingratio | Numberofsharesheldattheendofthereportingperiod | Increaseordecreaseduringthereportingperiod | Numberofsharesheldwithlimitedsalesconditions | Numberofsharesheldwithunlimitedsalesconditions | Pledged,taggedorfrozenshares | |||||||||
| Statusofshares | Quantity | |||||||||||||||
| WinnerGroupLimited | Overseaslegalperson | 68.10% | 290,438,848 | 0 | 290,438,848 | 0 | ||||||||||
| BeijingSequoiaXinyuanEquityInvestmentCenter(LimitedPartnership) | Domesticnon-statelegalperson | 5.19% | 22,134,142 | (7,013,958) | 0 | 22,134,142 | ||||||||||
| XiamenLeyuanInvestmentPartnership(LimitedPartnership) | Domesticnon-statelegalperson | 3.23% | 13,762,175 | (3,899,325) | 0 | 13,762,175 | ||||||||||
| XiamenYutongInvestmentPartnership(LimitedPartnership) | Domesticnon-statelegalperson | 1.72% | 7,324,573 | (2,040,862) | 0 | 7,324,573 | ||||||||||
| XiamenHuikangInvestmentPartnership(LimitedPartnership) | Domesticnon-statelegalperson | 1.04% | 4,418,062 | (1,237,901) | 0 | 4,418,062 | ||||||||||
| HongKongSecuritiesClearingCompanyLimited | Overseaslegalperson | 0.72% | 3,072,592 | 2,067,281 | 0 | 3,072,592 | ||||||||||
| XiamenZepengInvestmentPartnership(LimitedPartnership) | Domesticnon-statelegalperson | 0.52% | 2,231,988 | (671,300) | 0 | 2,231,988 | ||||||||||
| NationalSocialSecurityFund101Portfolio | Others | 0.37% | 1,564,000 | 1,564,000 | 0 | 1,564,000 | ||||||||||
| BasicEndowmentInsuranceFund808Portfolio | Others | 0.29% | 1,235,980 | 1,235,980 | 0 | 1,235,980 | ||||||||||
| ZhengJunhui | Domesticnaturalperson | 0.27% | 1,161,700 | 1,161,700 | 0 | 1,161,700 | ||||||||||
| Strategicinvestorsorgenerallegalpersonsbecomingthetop10shareholdersduetotheallotmentofnewshares(ifany)(seenote4) | None | |||||||||||||||
| Descriptionoftheabove-mentionedshareholderassociationorconcertedaction | None | |||||||||||||||
| Descriptionoftheaboveshareholdersinvolvedinentrusting/entrustedvotingrightandwaiverofvotingright | None | |||||||||||||||
| Specialnoteontheexistenceofrepurchasespecialaccountsamongthetop10shareholders(ifany)(seeNote10) | AsofDecember31,2022,theCompany'srepurchased6,754,659sharesoftheCompanyheldinthe“specialsecuritiesaccountfortherepurchaseofWinnerMedicalCo.,Ltd.” | |||||||||||||||
| Shareholdingoftop10shareholderswithunlimitedsales | |||
| Shareholder'sname | Numberofshareswithunlimitedsalesconditionsheldattheendofthereportingperiod | Sharetype | |
| Sharetype | Quantity | ||
| BeijingSequoiaXinyuanEquityInvestmentCenter(LimitedPartnership) | 22,134,142 | RMBcommonshare | 22,134,142 |
| XiamenLeyuanInvestmentPartnership(LimitedPartnership) | 13,762,175 | RMBcommonshare | 13,762,175 |
| XiamenYutongInvestmentPartnership(LimitedPartnership) | 7,324,573 | RMBcommonshare | 7,324,573 |
| XiamenHuikangInvestmentPartnership(LimitedPartnership) | 4,418,062 | RMBcommonshare | 4,418,062 |
| HongKongSecuritiesClearingCompanyLimited | 3,072,592 | RMBcommonshare | 3,072,592 |
| XiamenZepengInvestmentPartnership(LimitedPartnership) | 2,231,988 | RMBcommonshare | 2,231,988 |
| NationalSocialSecurityFund101Portfolio | 1,564,000 | RMBcommonshare | 1,564,000 |
| BasicEndowmentInsuranceFund808Portfolio | 1,235,980 | RMBcommonshare | 1,235,980 |
| ZhengJunhui | 1,161,700 | RMBcommonshare | 1,161,700 |
| AgriculturalBankofChinaLimited-CSI500IndexOpen-endedFund | 915,100 | RMBcommonshare | 915,100 |
| Descriptionoftheassociationorconcertedactionbetweentop10publicshareholderswithunlimitedsalesconditions,andbetweentop10publicshareholderswithunlimitedsalesconditionsandtop10shareholders | None | ||
| Participationinthesecuritiesmargintrading(ifany)(seeNote5) | None | ||
WhethertheCompanyhasarrangementsfordifferencesinvotingrights?Applicable√NotapplicableWhethertheCompany'stop10commonshareholdersandop10commonshareholderswithunlimitedsalesconditionsagreedonarepurchasetransactionduringthereportingperiod?Yes√NoTheCompany'stop10commonshareholdersandop10commonshareholderswithunlimitedsalesconditionsdidnotagreeonarepurchasetransactionduringthereportingperiod
2.ControllingshareholderoftheCompany
Natureofthecontrollingshareholder:foreigncontrolledTypeofshareholder:legalperson
| Nameofthecontrollingshareholder | Legalrepresentative/principal | Dateofestablishment | Organizationcode | Mainbusiness |
| WinnerGroupLimited | LiJianquan | April08,2003 | 124887 | Investmentmanagement |
| Equityofotherdomesticandforeignlistedcompaniescontrolledandinvestedbycontrollingshareholderduringthereportingperiod | None |
Changeofcontrollingshareholdersduringthereportingperiod?Applicable√NotapplicableTherewasnochangeincontrollingshareholdersduringthereportingperiod.
3.ActualcontrolleroftheCompanyandthepersonactinginconcertNatureofactualcontroller:overseasnaturalpersonTypeofactualcontroller:naturalperson
| Nameofactualcontroller | Relationshipwithactualcontroller | Nationality | Grantedwiththerightofresidenceinothercountriesorregions |
| LiJianquan | Himself | HongKong,China | No |
| Mainoccupationandposition | ChairmanandGeneralManager | ||
| Domesticandforeignlistedcompaniescontrolledinthepast10years | WinnerMedicalwaslistedontheOver-the-CounterBulletinBoardofUnitedStatesonDecember16,2005,switchedtotheNewYorkStockExchangeonOctober8,2009,switchedtotheNASDAQStockExchangeonApril6,2010,anddelistedonDecember26,2012.LiJianquanholdsmorethan50%ofthevotingrightsofWinnerMedical,constitutinganactualcontroloverWinnerMedical. | ||
Changesinactualcontrollerduringthereportingperiod?Applicable√NotapplicableTherewasnochangeinactualcontrollerduringthereportingperiod.BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompanyandtheactualcontroller
LiJianquanWinnerGroupLimited
WinnerGroupLimitedWinnerMedicalCo.,Ltd.
TheactualcontrollercontrolstheCompanythroughtrustorotherassetmanagement?Applicable√Notapplicable
4.ThecumulativenumberofpledgedsharesofthecontrollingshareholderorthelargestshareholderoftheCompanyandthepersonactinginconcertaccountsfor80%ofthetotalnumberofsharesheldbythemintheCompany?Applicable√Notapplicable
5.Othercorporateshareholdersholdingmorethan10%oftheshares
?Applicable√Notapplicable
6.Restrictionandreductionofthesharesofcontrollingshareholders,actualcontrollers,reorganizationparties
andotherpromisedentities?Applicable√NotapplicableIV.SpecificImplementationofShareRepurchaseintheReportingPeriodImplementationprogressofsharerepurchase
√Applicable?Notapplicable
| Schemedisclosuretime | Numberofproposedrepurchaseshares(shares) | Proportiontototalsharecapital | Proposedrepurchaseamount(10,000yuan) | Proposedrepurchaseperiod | Repurchasepurpose | Numberofrepurchasedshares(shares) | Proportionofrepurchasedsharestotheunderlyingsharesinvolvedintheequityincentiveplan(ifany) |
| September22,2021 | Basedontheupperlimitoftheproposedrepurchasepriceandtherangeofrepurchaseamount,thenumberofsharestoberepurchasedshallnotbelessthan2,586,200andnotmorethan4,310,300. | Basedontheupperlimitoftheproposedrepurchasepriceandtherangeofrepurchaseamount,theproportionofsharestoberepurchasedshallnotbelessthan0.6064%andnotmorethan1.0107% | NolessthanRMB300millionandnomorethanRMB500million | Notmorethan12monthsfromthedateoftheresolutionofthethirdmeetingoftheThirdBoardofDirectorsheldonSeptember17,2021 | EquityincentiveorESOP | 6,754,659 |
Implementationprogressofreducingrepurchasedsharesbycentralizedbiddingtransactions?Applicable√Notapplicable
PreferredShares?Applicable√NotapplicableTherewasnopreferredsharesoftheCompanyduringthe
reportingperiod.
InformationRelatedto
Bonds
?Applicable√Notapplicable
FinancialReport
I.AuditReport
| Typeofauditopinion | Standardunqualifiedopinion |
| Dateofsigningtheauditreport | April23,2023 |
| Nameofauditinstitution | BDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLP |
| Auditreportdocumentnumber | X.K.S.B.Zi[2023]No.ZI10233 |
| Nameofcertifiedpublicaccountants | ChengJin,WuLihong |
AuditReportText
I.AuditOpinion
WehaveauditedtheaccompanyingfinancialstatementsofWinnerMedicalCo.,Ltd.(hereinafterreferredto“WinnerMedical”),includingtheconsolidatedandparentcompanybalancesheetasofDecember31,2022,aswellastheconsolidatedandparentcompanyincomestatement,consolidatedandparentcompanycashflowstatementandconsolidatedandparentcompanystatementofchangeinequityfortheyear2022andnotestofinancialstatements.Inouropinion,theattachedfinancialstatementsofWinnerMedicalhavebeenpreparedinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisesandgiveatrueandfairviewoftheconsolidatedandparentcompanyfinancialpositionasofDecember31,2022andtheconsolidatedandparentcompanyfinancialperformanceandcashflowsfortheyear2022inallsignificantterms.
II.BasisforAuditOpinionWeconductedourauditinaccordancewiththeChinaRegisteredAccountantsAuditingStandards(CRAAS).Thesectiontitled“Responsibilityofcertifiedpublicaccountantsforauditoffinancialstatements”intheauditreportfurthersetforthourresponsibilityundertheStandards.WewereindependentofWinnerMedicalandfulfillotherresponsibilitiesintermsofprofessionalethicsaccordingtothecodeofprofessionalethics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoactasabasisforourauditopinion.
III.KeyAuditItems
Thekeyaudititemsarethosethatweconsidermostimportanttoauditthefinancialstatementsofthecurrentperiodinourprofessionaljudgment.Theresponsetotheseitemsisbasedontheauditofthefinancialstatementsasawholeandtheformationofanauditopinion.Wedonotcommentontheseitemsseparately.
Thekeyaudititemsweidentifiedintheauditaresummarizedasfollows:
| Keyaudititems | Howistheitemhandledintheaudit |
| Existenceofmonetaryfundsandtradingfinancialassets | |
| PleaserefertoNotesIII,(X)andNotesV,(I),(II)totheconsolidatedfinancialstatements.OnDecember31,2022,thebalanceofWinnerMedical'smonetaryfundsandtradingfinancialassetswasaboutRMB8.906billion,accountingfor48.83%ofthetotalassets;OnDecember31,2021,thebalanceofWinnerMedical'smonetaryfundsandtradingfinancialassetswasapproximatelyRMB7.404billion,accountingfor55.81%ofthetotalassets,whichisimportanttothefinancialstatements.Westillneedtopayattentiontowhetherthereisariskofmaterialmisstatementintheexistenceofmonetaryfunds,tradingfinancialassetsandothercurrentassets. | Ourmainauditproceduresfortheexistenceofmonetaryfundsandtradingfinancialassetsinclude:1.Understandthekeyinternalcontrolsrelatedtotheexistenceofmonetaryfundsandtradingfinancialassets,evaluatethedesignofthesecontrols,determinewhethertheyareimplemented,andtesttheoperationeffectivenessoftherelevantinternalcontrols;2.Obtainthebankaccountstatementsandcheckwiththebookbalance.Obtainthebankreconciliationstatementsfortheitemswithdifferences,understandthenatureofthereconciliationitems,andtestthemajorreconciliationitems;3.Implementconfirmationproceduresformonetaryfundsandtradingfinancialassets,andcalculateaccordingtothelatestnetvalueasofthebalancesheetdateprovidedbythebank.4.Checklargeamountsofmonetaryfunds;inspectproductspecificationsandpurchasereceiptsfortradingfinancialassets;5.Obtaincorporatecreditreportsandcheckwhethertherearepledgeguaranteemattersrelatedtomonetaryfunds;6.Implementthebanksettlementaccountinformationinquiryproceduretoconfirmtheaccuracyandcompletenessofthebanksettlementaccountprovidedtousbythemanagement. |
| Recognitionofoperatingincome | |
| Fordetailsoftheaccountingpoliciesforincomerecognitionandtheanalysisofincome,pleaserefertoNotesIII,(XXVIII)andNotesV,(XXXIX)totheconsolidatedfinancialstatements.TheincomeofWinnerMedicalmainlycomesfromthesalesbusinessofmedicalconsumablesandhealthconsumergoods.Comparedwiththepreviousperiod,duetofrequentoccurrenceofpublichealtheventsandthetightenedgovernment'sepidemicpreventionpoliciesinChina,theincomeofmedicalconsumablesrealizedayear-on-yearincreaseofapproximately83.65%,whichwasasignificantchangesinrevenue.Therefore,wedetermineincomerecognitionasakeyauditissue. | OurmainauditproceduresfortheoperatingincomerecognitionofWinnerMedicalinclude:1.Understandthekeyinternalcontrolsrelatedtotherecognitionofincome,evaluatethedesignofthesecontrols,determinewhethertheyareimplemented,andtesttheoperationeffectivenessoftherelevantinternalcontrols;2.Checkthemajorsalescontracts,understandthetermsorconditionsofthemajorcontracts,andevaluatewhethertheincomerecognitionpolicyconformstotheprovisionsoftheAccountingStandardsforBusinessEnterprises;3.Implementsubstantiveanalysisproceduresforincomeandgrossprofitmarginaccordingtomajorproducts,identifywhethertherearesignificantorabnormalfluctuations,andfindoutthecausesoffluctuations;4.Confirmcurrentsalestomaincustomersbysamplingcombinedwiththeconfirmationofaccountsreceivable;5.Fordomesticsalesincome,checksupportingdocumentsrelatedtoincomerecognitionbysampling,includingsalescontract,order,salesinvoice,deliverynoteandcustomerreceipt,etc.;forexportincome,checksupportingdocumentssuchassalescontract,exportdeclarationform,billoflandingbysampling;6.Implementananalyticalreviewprocedurefore-commercesalesincome,selecttheTaosystem,JD.comandofficialwebsitewiththehighestproportionofe-commerce,obtainthesalesdataofeachplatformforconsumptionbehavioranalysis,andcompareitwiththecarryingamountofCompany'ssalesincome;7.Checkthecapitalflowofthird-partypaymentplatformssuchasAlipayandcheckitwiththecarryingamount;8.Carryoutcutofftestontheincomerecognizedbeforeandafterthebalancesheetdatetoevaluatewhethertheincomeisrecognizedintheappropriateperiod. |
(continued)
| KeyAuditItems | Howistheitemhandledintheaudit |
| Accountingoffixedassetsandconstructioninprogress | |
| PleaserefertoNotesIII,(XVII),(XVIII)andNotesV,(XIII),(XIV)totheconsolidatedfinancialstatements.AsofDecember31,2022,thenetamountoffixedassetsandconstructioninprogresswasRMB3.078billion,accountingforapproximately16.88%ofthetotalassets;AsofDecember31,2021,thenetamountoffixedassetsandconstructioninprogresswasRMB1.693billion,accountingforapproximately12.76%ofthetotalassets,representingayear-on-yearincreaseofapproximatelyRMB1.385billion(includinganetincreaseofapproximatelyRMB636millionduetocorporatecombination).FixedassetsandconstructioninprogressareanimportantpartoftheconsolidatedbalancesheetofWinnerMedical.Thetimepointwhentheconstructioninprogressreachesthepredeterminedusableconditionandtransferintothefixedassets,themethodofdepreciationcalculationofthefixedassets,thejudgmentoftheusefullifeofthefixedassetsandthenetrealizablevalueofthefixedassetswillimpactthebookvalueofthefixedassetsandconstructioninprogress,andtheyareofimportancetotheconsolidatedfinancialstatements. | OurmainauditproceduresfortheaccountingoffixedassetsandconstructioninprogressofWinnerMedicalinclude:1.Checktheprogressofimportantfixedassetsandconstructioninprogressonthebasisofsampling,todeterminetheirexistenceandpayattentiontowhetherthereareidleordamagedfixedassets;2.Selectsamplesoffixedassetsandconstructioninprogressincreasedordecreaseincurrentyear,andchecksupportingdocumentssuchascontracts,invoices,acceptancecertificates,collectionorpaymentorders,etc.;3.Checktheownershiporcontroloffixedassets;4.Checkwhetherthedepreciationpoliciesandmethodscomplywiththestandards,whethertheestimatedservicelifeandestimatednetresidualvaluearereasonable,andcalculatewhetherthedepreciationiscorrect;5.Onthebasisofsampling,checkthedateofacceptancereport,checkdebuggingandproductionrecords,andjudgetheappropriatenessofthetimepointwhentheconstructioninprogressistransferredintofixedassets.6.Makematchinganalysisontheprojectprogressandpaymentprogressoflarge-scaleprojectstodeterminewhetherthereareanyabnormalsituations,andconfirmrelevanteconomicmatters(contractterms,receiptandpayment,invoicing,transactionbalance,projectprogress)throughcorrespondence. |
| Potentialimpairmentofgoodwill | |
| PleaserefertoNotesV,(XVII),VI,(I)totheconsolidatedfinancialstatements.AsofDecember31,2022,thenetamountofgoodwillwasRMB1.045billion,accountingforapproximately5.73%ofthetotalassets,whichwasformedbytheacquisitionofsubsidiariesinthecurrentperiod.Duringtheevaluationofgoodwillimpairment,theapplykeyassumptionssuchasincomegrowthrate,grossprofitmarginanddiscountrate.Duetotheimportanceofgoodwilltotheoverallfinancialstatementsandtheinvolvementofmanagement'ssubjectivejudgmentsandsignificantestimatesinimpairmenttest,whichareinherentlyuncertainandmaybeaffectedbymanagement'sbias,weregardgoodwillanditsimpairmenttestassignificantrisks. | OurmainauditproceduresforpotentialimpairmentofWinnerMedical'sgoodwillinclude:1.Evaluateandtestthedesignandexecutioneffectivenessofinternalcontrolsrelatedtogoodwillimpairmenttest;2.Comparethedatausedinthecashflowforecastwithhistoricaldatatoevaluatetherationalityofthedataused;3.Comparetheincomegrowthrateofthedetailedforecastperiodwiththehistoricalincomegrowthratetoevaluateitsrationality.Understandthebasisforthemanagementtodeterminetheincomegrowthrateinthesubsequentforecastperiod,andevaluateitsrationality;4.Comparethegrossprofitmarginofthedetailedforecastperiodwiththehistoricalgrossprofitmargin,andanalyzetherationalityofthegrossprofitmarginofthedetailedforecastperiod;5.Reviewtherationalityofthevaluationmodelandkeyparametersusedbymanagementinimpairmenttestswiththeassistanceofinternalvaluationexperts;6.Reviewtheadequacyandcompletenessofthedisclosureofimpairmentofgoodwillinthenotestofinancialstatements. |
IV.OtherinformationThemanagementofWinnerMedical(hereinafterreferredtoasthemanagement)isresponsibleforotherinformation,includingtheinformationcoveredinWinnerMedical'sannualreportfor2022,butexcludingthefinancialstatementsandourauditreport.Ourauditopiniononthefinancialstatementsdoesnotinvolveotherinformationandwedoesnotmadeanyformofverificationconclusionsonotherinformation.Combinedwithourauditofthefinancialstatements,it'sourresponsibilitytoreadotherinformation.Inthisprocess,weshallconsiderwhethermaterialinconsistencyormaterialmisstatementofotherinformationwiththefinancialstatementsorthesituationunderstoodbyusintheauditprocess.Basedontheworkthathasbeendonebyus,weshouldreportthefactofmaterialmisstatementconfirmedinotherinformation.Wehavenothingtoreportinthisregard.
V.Responsibilityofmanagementandgovernmentforthefinancialstatements
ThemanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisesandgivingatrueandfairview;designing,implementingandmaintainingnecessaryinternalcontrol,sothatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Whenpreparingthefinancialstatements,themanagementisresponsibleforevaluatingthegoing-concernabilityofWinnerMedical,disclosingthemattersrelatedtothegoing-concern(ifapplicable)andusingthegoing-concernassumption,unlessthemanagementplanstoliquidateSpectrumChemicalorstopoperationornootherrealisticoptions.ThegovernmentisresponsibleforsupervisingthefinancialreportingprocessofWinnerMedical.VI.ResponsibilityofcertifiedpublicaccountantsfortheauditoffinancialstatementsOurgoalistoobtainreasonableguaranteeoninexistenceofthematerialmisstatementofthefinancialstatementswhetherduetofraudorerrorandtoissueanauditreportincludingauditopinion.Reasonableguaranteeishighlevelguarantee,butitcannotguaranteethatamaterialmisstatementoftheauditexecutedaccordingtotheauditingstandardswillalwaysbefound.Misstatementmaybecausedbyfraudorerror.Ifthereasonableexpectedmisstatementsmayaffecttheeconomicdecisionmadebythefinancialstatementuseraccordingtothefinancialstatements,whetherindividuallyorcollectively,themisstatementisgenerallybelievedmaterial.Wemadeprofessionaljudgmentandmaintainedprofessionalskepticismintheauditprocessaccordingtotheauditingstandards.Wealsoperformedthefollowing:
(I)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,design
andimplementauditprocedurestoaddresstheserisks,andobtainsufficientandappropriateauditevidenceasthebasisforauditopinion.Sincethefraudmayinvolvecollusion,forge,intentionalomission,falsestatementoraboveinternalcontrol,theriskofmaterialmisstatementcausedbyfraudishigherthanthatcausedbyerror.(II)Understandinternalcontrolrelatedtotheauditinordertodesignauditproceduresthatareappropriateinthe
circumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheinternalcontrol.(III)Evaluatetheappropriatenessoftheaccountingpoliciesbeingusedbythemanagementandthereasonablenessof
accountingestimatesandrelevantdisclosurebeingmadebythemanagement.
(IV)Drawaconclusionabouttheappropriatenessofthegoing-concernassumptionusedbythemanagement.Meanwhile,drawaconclusionaboutthemajoruncertaintyofthemattersorcircumstancespossiblyresultinginmajorconcernsaboutthegoing-concernabilityofWinnerMedicalaccordingtotheauditevidenceobtained.Ifwedrawaconclusionthatmajoruncertaintyexists,theauditingstandardsrequireustorequestthestatementusertonoticerelevantdisclosureinthefinancialstatementsintheauditreport;incaseofinsufficientdisclosure,weshouldissueamodifiedauditreport.Ourconclusionismadeonthebasisoftheinformationavailableasoftheauditreportdate.However,thefuturemattersorcircumstancesmayresultingoingconcernfailureofWinnerMedical.(V)Evaluatetheoverallpresentation(includingdisclosure),structureandcontentofthefinancialstatementsandevaluate
whetherthefinancialstatementsgiveatrueandfairviewofrelevanttransactionsandmatters.(VI)ObtainadequateandappropriateauditevidenceforthefinancialinformationofWinnerMedicalentityorbusinessactivitiestoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforguiding,supervisingandimplementingthegroupauditandtakefullresponsibilityfortheauditopinions.Wecommunicatewiththegovernanceontheplannedauditscope,timearrangementandmajorauditfindings,includingtheinternalcontroldefectsidentifiedbyusintheauditandworthingattention.Wealsoprovidethegovernancewithastatementofcompliancewiththeethicalrequirementsrelatingtoourindependenceandcommunicatewiththegovernancewithrespecttoallrelationsandothermattersthatmayreasonablybeconsideredtoaffectourindependenceandtherelevantprecautions(ifapplicable).Fromtheitemscommunicatedwiththegovernance,wedeterminewhichitemsaremostimportanttotheauditofcurrentfinancialstatementsandthusconstitutethekeyaudititems.Wedescribetheseitemsinourauditreport,unlessthedisclosureofthesemattersisprohibitedbylaworregulation,or,inrarecircumstances,wedeterminethatweshouldnotcommunicatetheitemsinourauditreportifitisreasonablyexpectedthatthenegativeconsequencesofcommunicatinganitemoutweighthebenefitsinthepublicinterest.
| BDOCHINASHULUNPANCERTIFIEDPUBLICACCOUNTANTSLLP | ChineseCertifiedPublicAccountant(ProjectPartner):ChengJin |
| Shanghai,China | ChineseCertifiedPublicAccountant:WuLihong |
| April23,2023 |
II.FinancialStatementsUnitofstatementsinfinancialnotes:RMB
1.ConsolidatedBalanceSheet
| Preparedby:WinnerMedicalCo.,Ltd. | December31,2022 | Unit:yuan |
| Item | December31,2022 | January1,2022 |
| Currentassets: | ||
| Cashandcashequivalents | 4,526,877,578.90 | 4,273,938,326.82 |
| Depositreservationforbalance | ||
| Lendingfunds | ||
| Tradablefinancialassets | 4,378,789,960.23 | 3,130,529,709.10 |
| Derivativefinancialassets | ||
| Notesreceivable | 51,001,784.57 | |
| Accountsreceivable | 932,642,061.04 | 775,546,589.42 |
| Amountsreceivablefinancing | 93,093,113.79 | 9,940,272.21 |
| Advancestosuppliers | 229,225,273.09 | 110,462,594.38 |
| Premiumsreceivables | ||
| Reinsuranceaccountsreceivable | ||
| Provisionofcessionreceivable | ||
| Otherreceivables | 236,298,390.78 | 329,179,077.01 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Redemptorymonetarycapitalforsale | ||
| Inventory | 1,558,923,573.37 | 1,597,377,043.99 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetsduewithinayear | ||
| Othercurrentassets | 119,059,084.47 | 118,759,825.56 |
| Totalcurrentassets | 12,125,910,820.24 | 10,345,733,438.49 |
| Non-currentassets: | ||
| Loansandadvances |
(continued)
| Item | December31,2022 | January1,2022 |
| Debtinvestment | ||
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 21,747,635.99 | 16,949,801.24 |
| Otherequityinstrumentinvestments | ||
| Othernon-currentfinancialassets | 40,000,000.00 | |
| Investmentrealestates | 8,747,014.25 | |
| Fixedassets | 2,312,982,598.88 | 1,477,320,848.63 |
| Constructioninprogress | 765,009,910.63 | 216,096,622.30 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | 472,356,125.64 | 531,735,443.44 |
| Intangibleassets | 1,033,109,803.45 | 265,700,890.65 |
| Developmentexpenditure | ||
| Goodwill | 1,044,674,814.01 | |
| Long-termunamortizedexpenses | 132,692,286.03 | 174,785,770.83 |
| Deferredincometaxassets | 196,993,751.80 | 122,716,382.99 |
| Othernon-currentassets | 83,524,640.64 | 115,571,001.80 |
| Totalnon-currentassets | 6,111,838,581.32 | 2,920,876,761.88 |
| Totalassets | 18,237,749,401.56 | 13,266,610,200.37 |
| Currentliabilities: | ||
| Short-termloans | 2,295,218,930.85 | |
| Borrowingsfromcentralbank | ||
| Borrowingfunds | ||
| Tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 24,760,000.00 | 36,200,130.04 |
| Accountspayable | 1,119,574,518.58 | 734,521,490.60 |
| Advancefromcustomers |
(continued)
| Item | December31,2022 | January1,2022 |
| Contractliabilities | 566,819,254.08 | 341,175,665.42 |
| Financialassetssoldforrepurchase | ||
| Depositsfromcustomersandinterbank | ||
| Actingtradingsecurities | ||
| Actingunderwritingsecurities | ||
| Payrollpayable | 312,450,241.38 | 184,681,184.52 |
| Taxespayable | 322,255,874.61 | 93,859,069.68 |
| Otherpayables | 570,843,242.88 | 443,946,028.46 |
| Including:Interestpayable | ||
| Dividendspayable | ||
| Feesandcommissionspayable | ||
| Dividendpayableforreinsurance | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilitiesduewithinoneyear | 215,946,889.32 | 216,181,531.82 |
| Othercurrentliabilities | 59,604,591.85 | 24,165,400.50 |
| Totalcurrentliabilities | 5,487,473,543.55 | 2,074,730,501.04 |
| Non-currentliabilities: | ||
| Reservefundforinsurancecontracts | ||
| Long-termloans | ||
| Bondspayable | ||
| Including:preferredstock | ||
| Perpetualbond | ||
| Leaseliabilities | 326,459,697.90 | 381,808,925.09 |
| Long-termpayable | ||
| Long-termpayrollpayable | 8,579,637.94 | |
| Estimatedliabilities | ||
| Deferredincome | 98,791,412.91 | 109,625,401.82 |
| Deferredincometaxliabilities | 133,677,102.81 | 13,337,159.68 |
| Othernon-currentliabilities |
(continued)
| Item | December31,2022 | January1,2022 | |
| Totalnon-currentliabilities | 567,507,851.56 | 504,771,486.59 | |
| Totalliabilities | 6,054,981,395.11 | 2,579,501,987.63 | |
| Owner'sequity: | |||
| Capitalstock | 426,492,308.00 | 426,492,308.00 | |
| Otherequityinstruments | |||
| Including:preferredstock | |||
| Perpetualbond | |||
| Capitalreserve | 4,546,247,611.24 | 4,549,621,096.81 | |
| Less:treasurystock | 500,082,734.11 | 257,992,366.68 | |
| Othercomprehensiveincome | 782,778.15 | (1,556,935.43) | |
| Specialreserve | |||
| Surplusreserve | 420,212,778.13 | 420,212,778.13 | |
| Generalriskprovision | |||
| Undistributedprofit | 6,810,953,829.30 | 5,538,135,285.97 | |
| Totalowners'equitiesattributabletotheownersofparentcompany | 11,704,606,570.71 | 10,674,912,166.80 | |
| Minorityequity | 478,161,435.74 | 12,196,045.94 | |
| Totalowners'equities | 12,182,768,006.45 | 10,687,108,212.74 | |
| Totalliabilitiesandowners'equities | 18,237,749,401.56 | 13,266,610,200.37 | |
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | |
2.BalanceSheetofParentCompany
| Preparedby:WinnerMedicalCo.,Ltd. | Unit:yuan | |
| Item | December31,2022 | January1,2022 |
| Currentassets: | ||
| Cashandcashequivalents | 3,657,596,762.00 | 3,580,157,428.37 |
| Tradablefinancialassets | 3,937,805,999.74 | 2,234,720,701.50 |
| Derivativefinancialassets | ||
| Notesreceivable | 15,100,060.05 | |
| Accountsreceivable | 454,131,329.85 | 502,217,638.86 |
| Amountsreceivablefinancing | 72,766,987.70 | 13,669,076.67 |
| Advancestosuppliers | 1,247,948,057.70 | 1,991,853,374.17 |
| Otherreceivables | 123,628,108.60 | 218,099,656.42 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventory | 335,624,519.05 | 297,766,006.91 |
| Contractassets | ||
| Assetsheldforsales | ||
| Non-currentassetsduewithinayear | ||
| Othercurrentassets | 100,484,526.44 | 54,582,482.01 |
| Totalcurrentassets | 9,945,086,351.13 | 8,893,066,364.91 |
| Non-currentassets: | ||
| Debtinvestment | ||
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 3,547,654,880.31 | 921,600,485.39 |
| Otherequityinstrumentinvestments | ||
| Othernon-currentfinancialassets | 40,000,000.00 | |
| Investmentrealestates | ||
| Fixedassets | 99,683,983.66 | 65,889,542.40 |
| Constructioninprogress | 28,127,353.45 | 2,671,206.77 |
(continued)
| Item | December31,2022 | January1,2022 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | 73,896,162.36 | 61,525,338.09 |
| Intangibleassets | 37,561,928.32 | 10,941,470.75 |
| Developmentexpenditure | ||
| Goodwill | ||
| Long-termunamortizedexpenses | 20,782,444.19 | 27,181,217.32 |
| Deferredincometaxassets | 38,862,577.13 | 15,829,010.17 |
| Othernon-currentassets | 24,649,870.57 | 50,585,930.78 |
| Totalnon-currentassets | 3,911,219,199.99 | 1,156,224,201.67 |
| Totalassets | 13,856,305,551.12 | 10,049,290,566.58 |
| Currentliabilities: | ||
| Short-termloans | 1,010,087,083.33 | |
| Tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 980,000,000.00 | |
| Accountspayable | 868,496,158.04 | 744,765,121.01 |
| Advancefromcustomers | ||
| Contractliabilities | 464,022,623.08 | 274,656,460.55 |
| Payrollpayable | 123,859,226.02 | 57,013,025.70 |
| Taxespayable | 145,381,044.31 | 68,694,400.06 |
| Otherpayables | 346,143,459.66 | 257,073,388.79 |
| Including:Interestpayable | ||
| Dividendspayable | ||
| Liabilitiesheldforsales | ||
| Non-currentliabilitiesduewithinoneyear | 22,369,924.68 | 14,395,962.64 |
| Othercurrentliabilities | 44,098,604.24 | 13,678,129.69 |
| Totalcurrentliabilities | 4,004,458,123.36 | 1,430,276,488.44 |
(continued)
| Item | December31,2022 | January1,2022 | |
| Non-currentliabilities: | |||
| Long-termloans | |||
| Bondspayable | |||
| Including:preferredstock | |||
| Perpetualbond | |||
| Leaseliabilities | 54,991,421.86 | 48,977,325.26 | |
| Long-termpayable | |||
| Long-termpayrollpayable | |||
| Estimatedliabilities | |||
| Deferredincome | 17,434,675.44 | 20,071,043.26 | |
| Deferredincometaxliabilities | 1,510,415.96 | 3,648,582.23 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 73,936,513.26 | 72,696,950.75 | |
| Totalliabilities | 4,078,394,636.62 | 1,502,973,439.19 | |
| Owner'sequity: | |||
| Capitalstock | 426,492,308.00 | 426,492,308.00 | |
| Otherequityinstruments | |||
| Including:preferredstock | |||
| Perpetualbond | |||
| Capitalreserve | 4,571,654,373.59 | 4,575,027,859.16 | |
| Less:treasurystock | 500,082,734.11 | 257,992,366.68 | |
| Othercomprehensiveincome | |||
| Specialreserve | |||
| Surplusreserve | 411,397,111.21 | 411,397,111.21 | |
| Undistributedprofit | 4,868,449,855.81 | 3,391,392,215.70 | |
| Totalowners'equities | 9,777,910,914.50 | 8,546,317,127.39 | |
| Totalliabilitiesandowners'equities | 13,856,305,551.12 | 10,049,290,566.58 | |
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | |
3.ConsolidatedStatementofIncome
| Preparedby:WinnerMedicalCo.,Ltd. | Unit:yuan | |
| Item | Year2022 | Year2021 |
| I.Totaloperatingincome | 11,351,331,545.08 | 8,037,420,812.91 |
| Including:Operatingincome | 11,351,331,545.08 | 8,037,420,812.91 |
| Interestrevenue | ||
| Premiumearned | ||
| Feeandcommissionincome | ||
| II.Operatingcost | 9,119,688,180.06 | 6,727,857,440.84 |
| Including:Operatingcosts | 5,972,800,817.29 | 4,028,246,646.17 |
| Interestexpenditure | ||
| Feeandcommissionexpense | ||
| Surrendervalue | ||
| Netpaymentsforinsuranceclaims | ||
| Netreservefundextractedforinsuranceliabilitycontracts | ||
| Bondinsuranceexpense | ||
| Reinsurancecosts | ||
| Taxesandsurcharges | 98,087,240.32 | 65,390,051.16 |
| Sellingexpenses | 2,050,176,407.46 | 1,989,167,789.56 |
| Administrativeexpenses | 633,614,634.95 | 454,389,948.90 |
| R&Dexpenses | 487,583,652.11 | 298,162,366.16 |
| Financialexpenses | (122,574,572.07) | (107,499,361.11) |
| Including:interestexpenditure | 50,057,668.71 | 29,988,617.24 |
| Interestrevenue | 123,909,561.75 | 137,186,581.16 |
| Plus:otherincomes | 84,373,262.34 | 102,353,195.81 |
| Incomefrominvestment(lossexpressedwith“-”) | 51,470,767.16 | 103,237,547.98 |
| Including:Incomefrominvestmentofjointventureandcooperativeenterprise | 4,697,834.75 | 3,525,570.83 |
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost | ||
| Exchangegain(lossexpressedwith“-”) | ||
| Netexposurehedginggain(lossexpressedwith“-”) |
(continued)
| Item | Year2022 | Year2021 |
| Incomefromfairvaluechanges(lossexpressedwith“-”) | 32,148,876.44 | 58,474,468.36 |
| Creditimpairmentlosses(lossexpressedwith“-”) | (63,943,322.52) | (574,000.57) |
| Assetsimpairmentlosses(lossexpressedwith“-”) | (362,869,340.23) | (100,665,232.92) |
| Incomefromdisposalofassets(lossexpressedwith“-”) | 3,726,204.37 | 3,250,448.27 |
| III.Operatingprofit(losstobefilledoutwiththeminussign“-”) | 1,976,549,812.58 | 1,475,639,799.00 |
| Plus:Non-operatingincome | 10,569,559.38 | 6,040,019.07 |
| Less:Non-operatingexpenditure | 67,613,275.63 | 18,919,306.79 |
| IV.Totalprofit(totallosstobefilledoutwiththeminussign“-”) | 1,919,506,096.33 | 1,462,760,511.28 |
| Less:Incometaxexpenses | 245,301,544.88 | 225,315,643.94 |
| V.Netprofit(netlosstobefilledoutwiththeminussign“-”) | 1,674,204,551.45 | 1,237,444,867.34 |
| (I)Classifiedbybusinesscontinuity | ||
| 1.Netprofitsfromgoingconcern(netlossexpressedwith“-”) | 1,674,204,551.45 | 1,237,444,867.34 |
| 2.Netprofitsfromdiscontinuingoperation(netlossexpressedwith“-”) | ||
| (II)Classifiedbyownership | ||
| 1.Netprofitsattributabletoshareholdersofparentcompany | 1,650,582,427.43 | 1,239,320,067.26 |
| 2.Minorityinterestincome | 23,622,124.02 | (1,875,199.92) |
| VI.Netamountofothercomprehensiveincomeaftertax | 3,547,462.46 | (830,700.50) |
| Netamountofothercomprehensiveincomeaftertaxattributedtoparentcompanyowners | 2,339,713.58 | (445,900.35) |
| (I)Othercomprehensiveincomethatcan'tbereclassifiedintoprofitandloss | 601,000.00 | |
| 1.Remeasurethevariationofnetindebtednessornetassetofdefinedbenefitplan | 601,000.00 | |
| 2.Othercomprehensiveincomethatcan'tbereclassifiedintoprofitandlossintheinvestedenterpriseunderequitymethod | ||
| 3.Fairvaluechangeofotherequityinstrumentinvestments | ||
| 4.Fairvaluechangeofenterprisecreditrisks | ||
| 5.Others | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitandloss | 1,738,713.58 | (445,900.35) |
| 1.Othercomprehensiveincomethatwillbereclassifiedintoprofitandlossintheinvestedenterpriseunderequitymethod | ||
| 2.Fairvaluechangeofotherdebtinvestments | ||
| 3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Provisionforcreditimpairmentofotherdebtinvestments |
(continued)
| Item | Year2022 | Year2021 |
| 5.Cashflowhedgingreserve | ||
| 6.Balancearisingfromthetranslationofforeigncurrencyfinancialstatements | 1,738,713.58 | (445,900.35) |
| 7.Others | ||
| Netamountofothercomprehensiveincomeaftertaxattributedtominorityshareholders | 1,207,748.88 | (384,800.15) |
| VII.Totalcomprehensiveincome | 1,677,752,013.91 | 1,236,614,166.84 |
| Totalcomprehensiveincomeattributedtoparentcompanyowners | 1,652,922,141.01 | 1,238,874,166.91 |
| Totalcomprehensiveincomeattributedtominorityshareholders | 24,829,872.90 | (2,260,000.07) |
| VIII.EarningsPerShare | ||
| (I)Basicearningspershare | 3.90 | 2.91 |
| (II)Dilutedearningspershare | 3.90 | 2.91 |
Incaseofbusinesscombinationinvolvingenterprisesundercommoncontrolinthecurrentperiod,thenetprofitsachievedbythemergedpartybeforecombinationwereRMB0.00andachievedbythemergedpartyinpreviousperiodwereRMB0.00.
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen |
4.IncomeStatementofParentCompany
| Preparedby:WinnerMedicalCo.,Ltd. | Unit:yuan | |
| Item | Year2022 | Year2021 |
| I.Operatingincome | 6,524,892,771.82 | 3,797,082,652.58 |
| Subtract:Operatingcosts | 4,161,507,373.94 | 2,437,724,491.05 |
| Taxesandsurcharges | 36,034,584.59 | 18,109,856.84 |
| Sellingexpenses | 452,754,200.04 | 296,170,387.31 |
| Administrativeexpenses | 334,694,723.83 | 275,874,409.29 |
| R&Dexpenses | 204,606,781.00 | 120,590,517.01 |
| Financialexpenses | (124,366,125.15) | (128,801,099.82) |
| Including:interestexpenditure | 22,677,277.27 | 3,052,877.00 |
| Interestrevenue | 112,771,887.57 | 127,719,496.31 |
| Plus:otherincomes | 20,759,967.82 | 48,122,477.41 |
| Incomefrominvestment(lossexpressedwith“-”) | 727,290,299.21 | 88,870,284.00 |
| Including:Incomefrominvestmentofjointventureandcooperativeenterprise | 4,692,894.92 | 3,525,570.83 |
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost(lossexpressedwith“-”) | ||
| Netexposurehedginggain(lossexpressedwith“-”) | ||
| Incomefromfairvaluechanges(lossexpressedwith“-”) | 29,434,882.75 | 52,211,519.29 |
| Creditimpairmentlosses(lossexpressedwith“-”) | (72,175,899.92) | 8,818,449.70 |
| Assetsimpairmentlosses(lossexpressedwith“-”) | (105,473,198.20) | (17,532,150.78) |
| Incomefromdisposalofassets(lossexpressedwith“-”) | (94,094.68) | |
| II.Operatingprofit(losstobefilledoutwiththeminussign“-”) | 2,059,403,190.55 | 957,904,670.52 |
| Plus:Non-operatingincome | 1,353,390.78 | 1,934,410.40 |
| Less:Non-operatingexpenditure | 17,761,666.63 | 1,734,395.59 |
| III.Totalprofit(totallosstobefilledoutwiththeminussign“-”) | 2,042,994,914.70 | 958,104,685.33 |
| Less:Incometaxexpenses | 188,173,390.49 | 148,546,547.62 |
| IV.Netprofit(netlosstobefilledoutwiththeminussign“-”) | 1,854,821,524.21 | 809,558,137.71 |
| (I)Netprofitsfromgoingconcern(netlossexpressedwith“-”) | 1,854,821,524.21 | 809,558,137.71 |
| (II)Netprofitsfromdiscontinuingoperation(netlossexpressedwith“-”) |
(continued)
| Item | Year2022 | Year2021 | ||
| V.Netamountofothercomprehensiveincomeaftertax | ||||
| (I)Othercomprehensiveincomethatcan'tbereclassifiedintoprofitandloss | ||||
| 1.Remeasurethevariationofnetindebtednessornetassetofdefinedbenefitplan | ||||
| 2.Othercomprehensiveincomethatcan'tbereclassifiedintoprofitandlossintheinvestedenterpriseunderequitymethod | ||||
| 3.Fairvaluechangeofotherequityinstrumentinvestments | ||||
| 4.Fairvaluechangeofenterprisecreditrisks | ||||
| 5.Others | ||||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitandloss | ||||
| 1.Othercomprehensiveincomethatwillbereclassifiedintoprofitandlossintheinvestedenterpriseunderequitymethod | ||||
| 2.Fairvaluechangeofotherdebtinvestments | ||||
| 3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||||
| 4.Provisionforcreditimpairmentofotherdebtinvestments | ||||
| 5.Cashflowhedgingreserve | ||||
| 6.Balancearisingfromthetranslationofforeigncurrencyfinancialstatements | ||||
| 7.Others | ||||
| VI.Totalcomprehensiveincome | 1,854,821,524.21 | 809,558,137.71 | ||
| VII.Earningspershare: | ||||
| (I)Basicearningspershare | ||||
| (II)Dilutedearningspershare | ||||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | ||
5.ConsolidatedStatementofCashFlow
| Preparedby:WinnerMedicalCo.,Ltd. | Unit:yuan | |
| Item | Year2022 | Year2021 |
| I.Cashflowfromfinancingactivities: | ||
| Cashfromsellinggoodsorofferinglabor | 12,313,842,633.16 | 8,561,473,154.33 |
| Netincreaseofcustomerdepositanddepositfromotherbanks | ||
| Netincreaseofborrowingsfromcentralbank | ||
| Netincreaseofborrowingfundsfromotherfinancialinstitutions | ||
| Cashfromobtainingoriginalinsurancecontractpremium | ||
| Cashreceivedfrominsurancepremiumoforiginalinsurancecontract | ||
| Netincreaseofdepositandinvestmentofinsured | ||
| Cashfrominterest,handlingchargesandcommissions | ||
| Netincreaseofborrowingfunds | ||
| Netincreaseofrepurchaseofbusinessfunds | ||
| Netcashfromactingtradingsecurities | ||
| Refundoftaxandlevies | 13,034,931.53 | 62,719,156.18 |
| Othercashreceivedrelatedtooperatingactivities | 215,912,765.53 | 186,733,643.10 |
| Subtotalofcashinflowfromoperatingactivities | 12,542,790,330.22 | 8,810,925,953.61 |
| Cashpaidforsellinggoodsorofferinglabor | 6,458,046,080.74 | 5,249,732,073.57 |
| Netincreaseofcustomerloansandadvances | ||
| Netincreaseofamountduefromcentralbankandinterbank | ||
| Cashpaidfororiginalinsurancecontractclaimspayment | ||
| Netincreaseoflendingfunds | ||
| Cashpaidforinterest,handlingchargesandcommissions | ||
| Cashpaidforpolicydividend | ||
| Cashpaidtoandforemployees | 1,775,089,609.22 | 1,324,315,606.64 |
| Taxesandfeespaid | 723,930,241.85 | 897,686,267.95 |
| Othercashpaidrelatedtooperatingactivities | 602,252,168.14 | 467,502,103.52 |
| Subtotalofcashoutflowfromoperatingactivities | 9,559,318,099.95 | 7,939,236,051.68 |
| Netcashflowfromoperatingactivities | 2,983,472,230.27 | 871,689,901.93 |
(continued)
| Item | Year2022 | Year2021 | ||
| II.Cashflowfrominvestmentactivities: | ||||
| Cashfrominvestmentwithdrawal | 8,019,668,619.78 | 7,090,000,000.00 | ||
| Cashfrominvestmentincome | 155,708,427.23 | 184,186,882.84 | ||
| Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 63,203,570.84 | 190,932,781.03 | ||
| Netcashreceivedfromthedisposalofsubsidiariesandotherbusinessentities | ||||
| Othercashreceivedrelatedtoinvestmentactivities | ||||
| Subtotalofcashinflowfrominvestmentactivities | 8,238,580,617.85 | 7,465,119,663.87 | ||
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlongtermassets | 1,199,381,228.11 | 743,269,761.70 | ||
| Cashpaidforinvestment | 9,180,242,000.00 | 6,243,043,466.66 | ||
| Netcashreceivedfromreinsurancebusiness | ||||
| Netcashpaidforobtainingsubsidiariesandotherbusinessunits | 1,677,072,708.56 | |||
| Othercashpaidrelatedtoinvestmentactivities | ||||
| Subtotalofcashoutflowfrominvestmentactivities | 12,056,695,936.67 | 6,986,313,228.36 | ||
| Netcashflowfrominvestingactivities | (3,818,115,318.82) | 478,806,435.51 | ||
| III.Cashflowfromfinancingactivities: | ||||
| Receiptsfromequitysecurities | ||||
| Including:Cashreceivedfromsubsidies'absorptionofminorityshareholders'investment | ||||
| Cashreceivedfromborrowings | 2,276,661,290.38 | |||
| Othercashreceivedrelatedtofinancingactivities | ||||
| Subtotalofcashinflowfromfinancialactivities | 2,276,661,290.38 | |||
| Cashrepaymentsofamountsborrowed | 149,941,702.35 | 150,000,000.00 | ||
| Cashpaidfordistributionofdividendsorprofitsandforinterestexpenses | 400,990,321.44 | 768,192,416.04 | ||
| Including:Dividendsandprofitspaidbysubsidiariestominorityshareholders | ||||
| Othercashpaidrelatedtofinancingactivities | 608,221,958.76 | 491,444,823.25 | ||
| Subtotalofcashoutflowfromfinancialactivities | 1,159,153,982.55 | 1,409,637,239.29 | ||
| Netcashflowfromfinancingactivities | 1,117,507,307.83 | (1,409,637,239.29) | ||
| IV.Impactofexchangeratemovementsoncashandcashequivalents | (654,523.15) | (1,981,530.49) | ||
| V.Netincreaseincashandcashequivalents | 282,209,696.13 | (61,122,432.34) | ||
| Plus:Balanceofcashandcashequivalentsatthebeginningoftheperiod | 4,088,612,262.04 | 4,149,734,694.38 | ||
| VI.Balanceofcashandcashequivalentsatendofperiod | 4,370,821,958.17 | 4,088,612,262.04 | ||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | ||
6.CashFlowStatementofParentCompany
| Preparedby:WinnerMedicalCo.,Ltd. | Unit:yuan | |
| Item | Year2022 | Year2021 |
| I.Cashflowfromfinancingactivities: | ||
| Cashfromsellinggoodsorofferinglabor | 7,024,626,852.61 | 3,868,882,685.84 |
| Refundoftaxandlevies | 8,723,940.00 | 59,750,226.81 |
| Othercashreceivedrelatedtooperatingactivities | 45,569,799.37 | 88,410,542.05 |
| Subtotalofcashinflowfromoperatingactivities | 7,078,920,591.98 | 4,017,043,454.70 |
| Cashpaidforsellinggoodsorofferinglabor | 3,123,159,254.41 | 2,919,880,528.57 |
| Cashpaidtoandforemployees | 488,580,185.70 | 320,386,520.67 |
| Taxesandfeespaid | 314,821,144.26 | 436,826,117.76 |
| Othercashpaidrelatedtooperatingactivities | 165,828,956.84 | 730,441,492.58 |
| Subtotalofcashoutflowfromoperatingactivities | 4,092,389,541.21 | 4,407,534,659.58 |
| Netcashflowfromoperatingactivities | 2,986,531,050.77 | (390,491,204.88) |
| II.Cashflowfrominvestmentactivities: | ||
| Cashfrominvestmentwithdrawal | 6,428,041,223.52 | 5,769,000,000.00 |
| Cashfrominvestmentincome | 120,343,865.20 | 162,879,612.33 |
| Netcashfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 41,772,465.29 | 153,159,514.85 |
| Netcashreceivedfromthedisposalofsubsidiariesandotherbusinessentities | ||
| Othercashreceivedrelatedtoinvestmentactivities | ||
| Subtotalofcashinflowfrominvestmentactivities | 6,590,157,554.01 | 6,085,039,127.18 |
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlongtermassets | 129,095,084.78 | 208,912,097.78 |
| Cashpaidforinvestment | 7,550,845,323.13 | 4,563,112,014.62 |
| Netcashpaidforobtainingsubsidiariesandotherbusinessunits | 2,020,549,500.00 | |
| Othercashpaidrelatedtoinvestmentactivities | ||
| Subtotalofcashoutflowfrominvestmentactivities | 9,700,489,907.91 | 4,772,024,112.40 |
| Netcashflowfrominvestingactivities | (3,110,332,353.90) | 1,313,015,014.78 |
| III.Cashflowfromfinancingactivities: | ||
| Receiptsfromequitysecurities | ||
| Cashreceivedfromborrowings | 1,010,000,000.00 |
(continued)
| Item | Year2022 | Year2021 | ||
| Othercashreceivedrelatedtofinancingactivities | ||||
| Subtotalofcashinflowfromfinancialactivities | 1,010,000,000.00 | |||
| Cashrepaymentsofamountsborrowed | 120,000,000.00 | |||
| Cashpaidfordistributionofdividendsorprofitsandforinterestexpenses | 397,234,965.83 | 768,050,437.64 | ||
| Othercashpaidrelatedtofinancingactivities | 377,499,720.17 | 271,738,213.27 | ||
| Subtotalofcashoutflowfromfinancialactivities | 774,734,686.00 | 1,159,788,650.91 | ||
| Netcashflowfromfinancingactivities | 235,265,314.00 | (1,159,788,650.91) | ||
| IV.Impactofexchangeratemovementsoncashandcashequivalents | (1,231,353.71) | (1,910,420.71) | ||
| V.Netincreaseincashandcashequivalents | 110,232,657.16 | (239,175,261.72) | ||
| Plus:Balanceofcashandcashequivalentsatthebeginningoftheperiod | 3,430,110,781.71 | 3,669,286,043.43 | ||
| VI.Balanceofcashandcashequivalentsatendofperiod | 3,540,343,438.87 | 3,430,110,781.71 | ||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | ||
7.ConsolidatedStatementonChangesinOwners'Equity
| Preparedby:WinnerMedicalCo.,Ltd. | Currentamount | Unit:yuan | |||||||||||||
| Item | Year2022 | ||||||||||||||
| Owners'equitiesattributabletotheownersofparentcompany | Minorityequity | Totalowners'equities | |||||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskprovision | Undistributedprofit | Others | Subtotal | |||||
| Preferredstock | Perpetualbond | Others | |||||||||||||
| I.Endingbalanceofpreviousyear | 426,492,308.00 | 4,549,621,096.81 | 257,992,366.68 | (1,556,935.43) | 420,212,778.13 | 5,538,135,285.97 | 10,674,912,166.80 | 12,196,045.94 | 10,687,108,212.74 | ||||||
| Plus:Changesinaccountingpolicies | |||||||||||||||
| Priorperioderrorcorrection | |||||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||||
| Others | |||||||||||||||
| II.Beginningbalanceincurrentyear | 426,492,308.00 | 4,549,621,096.81 | 257,992,366.68 | (1,556,935.43) | 420,212,778.13 | 5,538,135,285.97 | 10,674,912,166.80 | 12,196,045.94 | 10,687,108,212.74 | ||||||
| III.Increase/decreaseinthecurrentperiod(lesstobefilledoutwiththeminussign“-) | (3,373,485.57) | 242,090,367.43 | 2,339,713.58 | 1,272,818,543.33 | 1,029,694,403.91 | 465,965,389.80 | 1,495,659,793.71 | ||||||||
| (I)Totalcomprehensiveincome | 2,339,713.58 | 1,650,582,427.43 | 1,652,922,141.01 | 24,829,872.90 | 1,677,752,013.91 | ||||||||||
| (II)Owner'sinvestedanddecreasedcapital | (3,373,485.57) | (3,373,485.57) | 0.00 | (3,373,485.57) | |||||||||||
| 1.Commonstockinvestedbytheowner | |||||||||||||||
| 2.Capitalinvestedbyotherequityinstrumentholders | |||||||||||||||
| 3.Amountofshare-basedpaymentincludedintheowner'sequity | (3,373,485.57) | (3,373,485.57) | (3,373,485.57) | ||||||||||||
| 4.Others | |||||||||||||||
| (III)Profitdistribution | (377,763,884.10) | (377,763,884.10) | (377,763,884.10) | ||||||||||||
| 1.Withdrawalofsurplusreserves | |||||||||||||||
| 2.Withdrawalofgeneralriskpreparation | |||||||||||||||
| 3.Distributionofowners(orshareholders) | (377,763,884.10) | (377,763,884.10) | (377,763,884.10) | ||||||||||||
| 4.Others | |||||||||||||||
| (IV)Internaltransferofowner'sequity | |||||||||||||||
| 1.Capitalsurplustransfertopaid-incapital(orcapitalstock) | |||||||||||||||
| 2.Earnedsurplustransfertopaid-incapital(orcapitalstock) | |||||||||||||||
| 3.Earnedsurpluscoveringthedeficit | |||||||||||||||
| 4.Carryforwardretainedearningsinvariationofdefinedbenefitplan | |||||||||||||||
| 5.Carryforwardretainedearningsofothercomprehensiveincome | |||||||||||||||
| 6.Others | |||||||||||||||
| (V)Specialreserve | |||||||||||||||
| 1.Drawinthiscurrent | |||||||||||||||
| 2.Useinthiscurrent | |||||||||||||||
| (VI)Others | 242,090,367.43 | (242,090,367.43) | 441,135,516.90 | 199,045,149.47 | |||||||||||
| IV.Balanceattheendofcurrentperiod | 426,492,308.00 | 4,546,247,611.24 | 500,082,734.11 | 782,778.15 | 420,212,778.13 | 6,810,953,829.30 | 11,704,606,570.71 | 478,161,435.74 | 12,182,768,006.45 | ||||||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | |||||||||||||
7.ConsolidatedStatementonChangesinOwners'Equity
(continued)
| Preparedby:WinnerMedicalCo.,Ltd. | Lasttermamount | Unit:yuan | |||||||||||||
| Item | Year2021 | ||||||||||||||
| Owners'equitiesattributabletotheownersofparentcompany | Minorityequity | Totalowners'equities | |||||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Generalriskprovision | Undistributedprofit | Others | Subtotal | |||||
| Preferredstock | Perpetualbond | Others | |||||||||||||
| I.Endingbalanceofpreviousyear | 426,492,308.00 | 4,481,709,983.24 | (1,111,035.08) | 420,212,778.13 | 5,126,630,011.14 | 10,453,934,045.43 | 14,456,046.01 | 10,468,390,091.44 | |||||||
| Plus:Changesinaccountingpolicies | (60,128,638.03) | (60,128,638.03) | (60,128,638.03) | ||||||||||||
| Priorperioderrorcorrection | |||||||||||||||
| Businesscombinationundercommoncontrol | |||||||||||||||
| Others | |||||||||||||||
| II.Beginningbalanceincurrentyear | 426,492,308.00 | 4,481,709,983.24 | (1,111,035.08) | 420,212,778.13 | 5,066,501,373.11 | 10,393,805,407.40 | 14,456,046.01 | 10,408,261,453.41 | |||||||
| III.Increase/decreaseinthecurrentperiod(lesstobefilledoutwiththeminussign“-) | 67,911,113.57 | 257,992,366.68 | (445,900.35) | 471,633,912.86 | 281,106,759.40 | (2,260,000.07) | 278,846,759.33 | ||||||||
| (I)Totalcomprehensiveincome | (445,900.35) | 1,239,320,067.26 | 1,238,874,166.91 | (2,260,000.07) | 1,236,614,166.84 | ||||||||||
| (II)Owner'sinvestedanddecreasedcapital | 67,911,113.57 | 67,911,113.57 | 67,911,113.57 | ||||||||||||
| 1.Commonstockinvestedbytheowner | |||||||||||||||
| 2.Capitalinvestedbyotherequityinstrumentholders | |||||||||||||||
| 3.Amountofshare-basedpaymentincludedintheowner'sequity | 67,911,113.57 | 67,911,113.57 | 67,911,113.57 | ||||||||||||
| 4.Others | |||||||||||||||
| (III)Profitdistribution | (767,686,154.40) | (767,686,154.40) | (767,686,154.40) | ||||||||||||
| 1.Withdrawalofsurplusreserves | |||||||||||||||
| 2.Withdrawalofgeneralriskpreparation | |||||||||||||||
| 3.Distributionofowners(orshareholders) | (767,686,154.40) | (767,686,154.40) | (767,686,154.40) | ||||||||||||
| 4.Others | |||||||||||||||
| (IV)Internaltransferofowner'sequity | |||||||||||||||
| 1.Capitalsurplustransfertopaid-incapital(orcapitalstock) | |||||||||||||||
| 2.Earnedsurplustransfertopaid-incapital(orcapitalstock) | |||||||||||||||
| 3.Earnedsurpluscoveringthedeficit | |||||||||||||||
| 4.Carryforwardretainedearningsinvariationofdefinedbenefitplan | |||||||||||||||
| 5.Carryforwardretainedearningsofothercomprehensiveincome | |||||||||||||||
| 6.Others | |||||||||||||||
| (V)Specialreserve | |||||||||||||||
| 1.Drawinthiscurrent | |||||||||||||||
| 2.Useinthiscurrent | |||||||||||||||
| (VI)Others | 257,992,366.68 | (257,992,366.68) | (257,992,366.68) | ||||||||||||
| IV.Balanceattheendofcurrentperiod | 426,492,308.00 | 4,549,621,096.81 | 257,992,366.68 | (1,556,935.43) | 420,212,778.13 | 5,538,135,285.97 | 10,674,912,166.80 | 12,196,045.94 | 10,687,108,212.74 | ||||||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | |||||||||||||
8.StatementonChangesinOwners'EquityofParentCompany
| Preparedby:WinnerMedicalCo.,Ltd. | Currentamount | Unit:yuan | ||||||||||
| Item | Year2022 | |||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Others | Totalowners'equities | |||
| Preferredstock | Perpetualbond | Others | ||||||||||
| I.Endingbalanceofpreviousyear | 426,492,308.00 | 4,575,027,859.16 | 257,992,366.68 | 411,397,111.21 | 3,391,392,215.70 | 8,546,317,127.39 | ||||||
| Plus:Changesinaccountingpolicies | ||||||||||||
| Priorperioderrorcorrection | ||||||||||||
| Others | ||||||||||||
| II.Beginningbalanceincurrentyear | 426,492,308.00 | 4,575,027,859.16 | 257,992,366.68 | 411,397,111.21 | 3,391,392,215.70 | 8,546,317,127.39 | ||||||
| III.Increase/decreaseinthecurrentperiod(lesstobefilledoutwiththeminussign“-) | (3,373,485.57) | 242,090,367.43 | 1,477,057,640.11 | 1,231,593,787.11 | ||||||||
| (I)Totalcomprehensiveincome | 1,854,821,524.21 | 1,854,821,524.21 | ||||||||||
| (II)Owner'sinvestedanddecreasedcapital | (3,373,485.57) | (3,373,485.57) | ||||||||||
| 1.Commonstockinvestedbytheowner | ||||||||||||
| 2.Capitalinvestedbyotherequityinstrumentholders | ||||||||||||
| 3.Amountofshare-basedpaymentincludedintheowner'sequity | (3,373,485.57) | (3,373,485.57) | ||||||||||
| 4.Others | ||||||||||||
| (III)Profitdistribution | (377,763,884.10) | (377,763,884.10) | ||||||||||
| 1.Withdrawalofsurplusreserves | ||||||||||||
| 2.Distributionofowners(orshareholders) | (377,763,884.10) | (377,763,884.10) | ||||||||||
| 3.Others | ||||||||||||
| (IV)Internaltransferofowner'sequity | ||||||||||||
| 1.Capitalsurplustransfertopaid-incapital(orcapitalstock) | ||||||||||||
| 2.Earnedsurplustransfertopaid-incapital(orcapitalstock) | ||||||||||||
| 3.Earnedsurpluscoveringthedeficit | ||||||||||||
| 4.Carryforwardretainedearningsinvariationofdefinedbenefitplan | ||||||||||||
| 5.Carryforwardretainedearningsofothercomprehensiveincome | ||||||||||||
| 6.Others | ||||||||||||
| (V)Specialreserve | ||||||||||||
| 1.Drawinthiscurrent | ||||||||||||
| 2.Useinthiscurrent | ||||||||||||
| (VI)Others | 242,090,367.43 | (242,090,367.43) | ||||||||||
| IV.Balanceattheendofcurrentperiod | 426,492,308.00 | 4,571,654,373.59 | 500,082,734.11 | 411,397,111.21 | 4,868,449,855.81 | 9,777,910,914.50 | ||||||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | ||||||||||
8.StatementonChangesinOwners'EquityofParentCompany
(continued)
| Preparedby:WinnerMedicalCo.,Ltd. | Lasttermamount | Unit:yuan | ||||||||||
| Item | Year2021 | |||||||||||
| Capitalstock | Otherequityinstruments | Capitalreserve | Less:treasurystock | Othercomprehensiveincome | Specialreserve | Surplusreserve | Undistributedprofit | Others | Totalowners'equities | |||
| Preferredstock | Perpetualbond | Others | ||||||||||
| I.Endingbalanceofpreviousyear | 426,492,308.00 | 4,507,116,745.59 | 411,397,111.21 | 3,349,520,232.39 | 8,694,526,397.19 | |||||||
| Plus:Changesinaccountingpolicies | ||||||||||||
| Priorperioderrorcorrection | ||||||||||||
| Others | ||||||||||||
| II.Beginningbalanceincurrentyear | 426,492,308.00 | 4,507,116,745.59 | 411,397,111.21 | 3,349,520,232.39 | 8,694,526,397.19 | |||||||
| III.Increase/decreaseinthecurrentperiod(lesstobefilledoutwiththeminussign“-) | 67,911,113.57 | 257,992,366.68 | 41,871,983.31 | (148,209,269.80) | ||||||||
| (I)Totalcomprehensiveincome | 809,558,137.71 | 809,558,137.71 | ||||||||||
| (II)Owner'sinvestedanddecreasedcapital | 67,911,113.57 | 67,911,113.57 | ||||||||||
| 1.Commonstockinvestedbytheowner | ||||||||||||
| 2.Capitalinvestedbyotherequityinstrumentholders | ||||||||||||
| 3.Amountofshare-basedpaymentincludedintheowner'sequity | 67,911,113.57 | 67,911,113.57 | ||||||||||
| 4.Others | ||||||||||||
| (III)Profitdistribution | (767,686,154.40) | (767,686,154.40) | ||||||||||
| 1.Withdrawalofsurplusreserves | ||||||||||||
| 2.Distributionofowners(orshareholders) | (767,686,154.40) | (767,686,154.40) | ||||||||||
| 3.Others | ||||||||||||
| (IV)Internaltransferofowner'sequity | ||||||||||||
| 1.Capitalsurplustransfertopaid-incapital(orcapitalstock) | ||||||||||||
| 2.Earnedsurplustransfertopaid-incapital(orcapitalstock) | ||||||||||||
| 3.Earnedsurpluscoveringthedeficit | ||||||||||||
| 4.Carryforwardretainedearningsinvariationofdefinedbenefitplan | ||||||||||||
| 5.Carryforwardretainedearningsofothercomprehensiveincome | ||||||||||||
| 6.Others | ||||||||||||
| (V)Specialreserve | ||||||||||||
| 1.Drawinthiscurrent | ||||||||||||
| 2.Useinthiscurrent | ||||||||||||
| (VI)Others | 257,992,366.68 | (257,992,366.68) | ||||||||||
| IV.Balanceattheendofcurrentperiod | 426,492,308.00 | 4,575,027,859.16 | 257,992,366.68 | 411,397,111.21 | 3,391,392,215.70 | 8,546,317,127.39 | ||||||
| Legalrepresentative:LiJianquan | Headofaccountingwork:FangXiuyuan | Headofaccountinginstitution:WuKezhen | ||||||||||
III.BasicInformationoftheCompanyWinnerMedicalCo.,Ltd.(hereinafterreferredtoasthe“Company”or“ourCompany”),formerlyknownasWinnerIndustry(Shenzhen)Co.,Ltd.(hereinafterreferredtoas“WinnerIndustry”),isawhollyforeign-ownedenterpriseestablishedonAugust24,2000withtheapprovalofShenzhenMunicipalAdministrationforIndustryandCommerce.TheoriginalbusinesslicensenumberoftheCompanyis:Q.D.Y.S.Z.ZiNo.307199.TheoriginalregisteredcapitalisHKD30million,andthetotalinvestmentisHKD60million.TheCompanyiswhollyownedbyWinnerInternationalTradingCorporation.Theregisteredcapitalwasinvestedinthreeinstallments.OnApril2,2001,theregisteredcapitalofHKD18,023,154.30wasinvestedinmonetaryfunds,whichwasverifiedbythecapitalverificationreport(Z.T.Z.T.No.Y2001-1133)ofZhuhaiZhongtuoZhengtaiAccountingFirm.Thebusinessscopeoftheoriginalcompanyis:theproductionandoperationofsanitarymaterials,dressingsandtheirproducts,medicalclothing,textiles,non-wovenproductsandmouldedpackaging(excludingtheproductssubjecttonationalexportlicensemanagement).OnMay18,2001,theboardofdirectorsoftheCompanydecidedtoincreasetheregisteredcapitalfromHKD30.00milliontoHKD60.00million,andthetotalinvestmentfromHKD60.00milliontoHKD120.00million,whichwaspaidinthreeinstallmentssincethedateofregistrationoftheCompany.OnJune5,2001,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.AsofDecember21,2001,ithasreceivedthesecondinstallmentoftheregisteredcapitalpaidbyWinnerInternationalTradingCorporation.WinnerInternationalTradingCorporationcontributedHKD31,445,194.91inmonetaryfunds,andthisinvestmentwasverifiedbyShenzhenZhongpengCertifiedPublicAccountants,Ltd.(S.P.K.Y.Zi[2002]No.037capitalverificationreport).AsofFebruary21,2002,ithasreceivedthethirdinstallmentoftheregisteredcapitaltotalingHKD6,005,722.20paidbyWinnerInternationalTradingCorporation,includingHKD3,665,722.20incurrencyandHKD2,340,000.00inkind.ThisinvestmentwasverifiedbyShenzhenLishangCertifiedPublicAccountantsCo.,Ltd.(S.L.S.Y.Zi[2002]No.039capitalverificationreport)OnOctober8,2002,theboardofdirectorsoftheCompanydecidedtoincreasetheCompany'sregisteredcapitalfromHKD
60.00milliontoHKD70.00million,andthetotalinvestmentfromHKD120.00milliontoHKD134.00million.December10,2002,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.AsofMay27,2003,ithasreceivedthefourthinstallmentoftheregisteredcapitaltotalingHKD14,525,928.59paidby(HongKong)WinnerInternationalTradingCorporation.ThiscapitalincreasewasverifiedbyShenzhenYuehuaCertifiedPublicAccountantsCo.,Ltd.(S.Y.H.Y.Zi[2003]No.339capitalverificationreport).OnMay25,2003,withtheapprovaloftheboardofdirectorsoftheCompany,theshareholderWinnerInternationalTradingCorporationsignedtheEquityTransferAgreementwithWinnerGroupLimited,underwhichWinnerInternationalTradingCorporationtransferred100%ofitsequitytoWinnerGroupLimited.OnJuly28,2003,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.OnJune8,2006,theboardofdirectorsoftheCompanydecidedtoincreasetheCompany'sregisteredcapitalfromHKD
70.00milliontoHKD126.00million,andthetotalinvestmentfromHKD134.00milliontoHKD270.00million.ThenewlyincreasedregisteredcapitalofHKD56.00millionwastransferredfromtheundistributedprofitsaftertaxoftheCompany,andsuchnewlyincreasedregisteredcapitalwasinvestedwithinhalfayearafterregistrationofthechange.OnJune30,2006,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.AsofAugust30,2006,theCompanytransferredundistributedprofitsHKD49,423,804.00topaid-incapital,andthepaid-incapitalafterthechangewasHKD119,423,804.00.ThiscapitalincreasewasverifiedbytheShenzhenBranchofBeijingZhonglianCertifiedPublicAccountantsCo.,Ltd.(Z.L.S.S.Y.Zi[2007]No.043capitalverificationreport).OnDecember2,2006,theboardofdirectorsoftheCompanydecidedtochangetheoriginalinvestmentperiodoftheshareholdersfromJune30,2006toDecember31,2006intoJune30,2006toJune30,2007.OnDecember6,2006,theCompanywasapprovedbyGeneralAdministrationforIndustryandCommerceofShenzhentochangeitscorporatetypefromawhollyforeign-ownedenterpriseintoalimitedliabilitycompany(whollyownedbyforeignlegalperson)andchangeitsbusinessterm.
AsofMarch15,2007,theCompanytransferredundistributedprofitsofHKD6,576,196.00topaid-incapital,andthecumulativepaid-incapitalafterthechangewasHKD126.00million.ThiscapitalincreasewasverifiedbyShenzhenHengpingCertifiedPublicAccountantsCo.,Ltd.(S.H.P.W.Y.Zi[2007]No.0004capitalverificationreport).OnAugust13,2007,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.TheregistrationnumberwaschangedfromQ.D.Y.S.Z.ZiNo.307199to440306503230896.OnJune8,2009,theboardofdirectorsoftheCompanydecidedtoaddsterilizationtechnologyservicestothebusinessscope.OnJune30,2009,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.OnApril1,2010,theboardofdirectorsoftheCompanydecidedtoincreasetheCompany'sregisteredcapitalfromHKD
126.00milliontoHKD192.00million,andthetotalinvestmentfromHKD270.00milliontoHKD380.00million.Theincreasedamountoftheregisteredcapitalwascontributedbytheoriginalshareholdersincashinforeigncurrency.AsofJune18,2010,ithasreceivedtheregisteredcapitaltotalingUSD8,473,500.00(equivalenttoHKD66,000,653.75)paidbyWinnerGroupLimited.ThiscapitalincreasewasverifiedbyShenzhenHengpingCertifiedPublicAccountantsLLP(S.H.P.S.(W.)Y.Zi[2010]No.13capitalverificationreport).OnJuly2,2010,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulation(sinceSeptember9,2009,ShenzhenMunicipalBureauforIndustryandCommercehasbeenintegratedintoShenzhenAdministrationforMarketRegulation)andamendedtheArticlesofAssociationaccordingly.OnApril27,2011,withtheapprovalofGeneralAdministrationforIndustryandCommerceofShenzhen,theCompanychangeditsresidenceaddressfromNo.1WenjianAvenue,BulongRoad,LonghuaStreet,BaoanDistrict,ShenzhentoWinnerIndustrialParkbesideBulongRoad,LonghuaStreet,Bao'anDistrict,Shenzhen.OnFebruary20,2013,theboardofdirectorsoftheCompanydecidedandagreedtoincreasetheCompany'sregisteredcapitalbyHKD4,271,300.TheregisteredcapitalafterthechangewasHKD19,6271,300,andthetotalinvestmentwasstillHKD380.00million.Theshareholder,WinnerGroupLimitedmadecapitalcontributionwithitsequityinthesixenterprises.Theequitycontributionisasfollows:
| Nameofinvestedentity | Proportion(%) | Bookvalueofequitycontributionnetassets(a) | Amountofequitycontribution(RMB10,000)(b) | Amountincludedincapitalsurplus(RMB10,000)(c)=(a)-(b) | Amountofequitycontribution(converttoHKD10,000)(d)=(b)*conversionexchangerate |
| WinnerMedical(Chongyang)Co.,Ltd.(formerlyknownas“ChongyangWinnerMedicalTextileCo.,Ltd.”) | 100.00 | 3,232.93 | 32.33 | 3,200.60 | 39.94 |
| WinnerMedical(Jiayu)Co.,Ltd.(formerlyknownas“JiayuWinnerMedicalTextileCo.,Ltd.”) | 100.00 | 3,520.95 | 35.21 | 3,485.74 | 43.50 |
| WinnerMedical(Jingmen)Co.,Ltd.(formerlyknownas“JingmenWinnerMedicalTextileCo.,Ltd.”) | 100.00 | 2,527.24 | 25.27 | 2,501.97 | 31.22 |
| YichangWinnerMedicalTextileCo.,Ltd. | 100.00 | 1,800.69 | 18.01 | 1,782.68 | 22.25 |
| WinnerMedical(Huanggang)Co.,Ltd. | 75.00 | 19,729.30 | 197.29 | 19,532.01 | 243.76 |
| WinnerMedical(Tianmen)Co.,Ltd.(formerlyknownas“HubeiWinnerTextileCo.,Ltd.”) | 100.00 | 3,760.89 | 37.61 | 3,723.28 | 46.46 |
| Total | 34,572.00 | 345.72 | 34,226.28 | 427.13 |
Afterthecapitalincrease,theoriginalshareholdersstillhave100%oftheCompany'sequity,andtheabovesixcompaniesbecometheCompany'ssubsidiaries.OnJuly25,2013,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.ThiscapitalincreasewasverifiedbytheShenzhenBranchofZhonglianCertifiedPublicAccountantsCo.,Ltd.(Z.L.S.S.Y.Zi[2013]No.102capitalverificationreport).OnSeptember2,2013,theboardofdirectorsoftheCompanydecidedtoincreasetheCompany'sregisteredcapitalbyHKD18,068,200.TheregisteredcapitalafterthechangewasHKD214,339,500,andthetotalinvestmentwasstillHKD380,000,000.ThenewinvestmentwassubscribedbyShenzhenKangshengInvestmentPartnership(LimitedPartnership)(renamedasShenzhenLeyuanInvestmentPartnership(LimitedPartnership)duringthereportingperiod,hereinafterreferredtoasthe“LeyuanInvestment”),ShenzhenKangxinInvestmentPartnership(LimitedPartnership)(renamedasXiamenYutongInvestmentPartnership(LimitedPartnership)duringthereportingperiod,hereinafterreferredtoasthe“YutongInvestment”),ShenzhenKanglongInvestmentPartnership(LimitedPartnership)(renamedasXiamenHuikangInvestmentPartnership(LimitedPartnership)duringthereportingperiod,hereinafterreferredtoasthe“HuikangInvestment”)withHKD10,322,400,HKD4,414,500andHKD3,331,300respectively.Afterthecompletionofthecapitalincrease,theCompany'sownershipstructurewaschangedasfollows:
| Investor | Capitalcontributionamount(HKD10,000) | Proportion(%) |
| WinnerGroupLimited | 19,627.13 | 91.5703 |
| LeyuanInvestment | 1,032.24 | 4.8159 |
| YutongInvestment | 441.45 | 2.0596 |
| HuikangInvestment | 333.13 | 1.5542 |
| Total | 21,433.95 | 100.0000 |
OnOctober17,2013,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulationandamendedtheArticlesofAssociationaccordingly.ThiscapitalincreasewasverifiedbyShenzhenHengpingCertifiedPublicAccountantsLLP(S.H.P.S.Y.Zi[2013]No.035capitalverificationreport).OnOctober26,2013,theboardofdirectorsoftheCompanydecidedtochangeitsresidencefromWinnerIndustrialParkbesideBulongRoad,LonghuaStreet,BaoanDistrict,ShenzhentoWinnerIndustrialPark,No.660BulongRoad,LonghuaNewDistrict,Shenzhen.OnNovember4,2013,theCompanycompletedtheindustrialandcommercialregistrationofchanges,obtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenMunicipalBureauforIndustryandCommerceandamendedtheArticlesofAssociationaccordingly.OnJuly1,2014,theboardofdirectorsoftheCompanydecidedandagreedtoincreasetheCompany'sregisteredcapitalbyHKD3,640,000.TheregisteredcapitalafterthechangewasHKD217,986,100,andthetotalinvestmentwasstillHKD
380.00million.Thecapitalincreasewasmadebytheoriginalshareholder,LeyuanInvestment,whichsubscribedHKD3,646,600withRMB13,585,000,andtheincreasedregisteredcapitalwaspaidintwoinstallments.Afterthecompletionofthecapitalincrease,theCompany'sownershipstructurewaschangedasfollows:
| Investor | Capitalcontributionamount(HKD10,000) | Proportion(%) |
| WinnerGroupLimited | 19,627.13 | 90.0385 |
| LeyuanInvestment | 1,396.90 | 6.4082 |
| YutongInvestment | 441.45 | 2.0251 |
| HuikangInvestment | 333.13 | 1.5282 |
| Total | 21,798.61 | 100.0000 |
OnJuly24,2014,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulationandamendedtheArticlesofAssociationaccordingly.ThiscapitalincreasewasverifiedbyShenzhenHengpingCertifiedPublicAccountantsLLP(S.H.P.S.Y.Zi[2014]No.030andS.H.P.S.Y.Zi[2015]No.003capitalverificationreports).OnJuly28,2014,theBoardofDirectorsoftheCompanydecidedtoagreethattheshareholderoftheCompany,WinnerGroupLimited,wouldtransferits2.9503%equityoftheCompanytoYutongInvestment,HuikangInvestment,andthenewlyintroducedshareholder,ShenzhenKangliInvestmentPartnership(LimitedPartnership)(renamedasXiamenZepengInvestmentPartnership(LimitedPartnership)duringthereportingperiod,hereinafterreferredtoas“ZepengInvestment”).Afterthecompletionoftheequitytransfer,theCompany'sownershipstructurewaschangedasfollows:
| Investor | Capitalcontributionamount(HKD10,000) | Proportion(%) |
| WinnerGroupLimited | 18,984.01 | 87.0882 |
| LeyuanInvestment | 1,396.90 | 6.4082 |
| YutongInvestment | 740.83 | 3.3985 |
| HuikangInvestment | 447.37 | 2.0523 |
| ZepengInvestment | 229.50 | 1.0528 |
| Total | 21,798.61 | 100.0000 |
OnAugust29,2014,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulationandamendedtheArticlesofAssociationaccordingly.OnSeptember28,2014,theboardofdirectorsoftheCompanydecidedandagreedtoincreasetheCompany'sregisteredcapitalbyHKD22,550,300.TheregisteredcapitalafterthechangewasHKD240,536,400,andthetotalinvestmentwasstillHKD380.00million.ThenewregisteredcapitalwassubscribedbyBeijingSequoiaXinyuanEquityInvestmentCenter(LimitedPartnership)(hereinafterreferredtoas“SequoiaXinyuan”)withRMB300.00million.Afterthecompletionofthecapitalincrease,theCompany'sownershipstructurewaschangedasfollows:
| Investor | Capitalcontributionamount(HKD10,000) | Proportion(%) |
| WinnerGroupLimited | 18,984.01 | 78.9236 |
| LeyuanInvestment | 1,396.90 | 5.8074 |
| YutongInvestment | 740.83 | 3.0800 |
| HuikangInvestment | 447.37 | 1.8599 |
| ZepengInvestment | 229.50 | 0.9541 |
| SequoiaXinyuan | 2,255.03 | 9.3750 |
| Total | 24,053.64 | 100.0000 |
AsofOctober31,2014,ithasreceivedRMB300.00millionfromSequoiaXinyuaninmonetaryfunds.OnNovember6,2014,theCompanyobtainedthechangedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulationandamendedtheArticlesofAssociationaccordingly.ThiscapitalincreasewasverifiedbytheShenzhenBranchofZhonglianCertifiedPublicAccountantsCo.,Ltd.(Z.L.S.S.Y.Zi[2014]No.087capitalverificationreport).
OnApril30,2015,throughtheresolutionoftheboardofdirectorsoftheCompany,withFebruary28,2015asthebasedate,WinnerIndustrywaswhollychangedintoalimitedliabilityCompany,witharegisteredcapitalofRMB368million.InaccordancewiththeprovisionsoftheSponsorshipAgreementandArticlesofAssociation,theshareholdersconvertedtheirauditednetassetsasofFebruary28,2015ofRMB1,058,194,956.32into368millionsharesataratioof1:0.3478,parvalueofeachsharewasRMB1,andthetotalsharecapitalwasRMB368millionandheldseparatelybytheoriginalshareholdersinaccordancewiththeiroriginalproportions;theremainingRMB690,194,956.32wasincludedinthecapitalsurplus(duetothechangeofcalculationpolicyofCompany'sreceivablesbaddebtprovisionduringthereportingperiod,theauditednetassetsoftheCompanyasofthebasedateofsharereformwereadjustedtoRMB1,050,812,354.45,andthecorrespondingshareconversionratiowasadjustedto1:0.3502).OnJune4,2015,withtheapprovalofEconomy,TradeandInformationCommissionofShenzhenMunicipality,WinnerIndustrywaswhollychangedintoalimitedliabilitycompany,renamedas“WinnerMedicalCo.,Ltd.”,andobtainedthebusinesslicenseofenterpriselegalpersonwiththeregistrationnumberof440306503230896.OnMay28,2018,afterbeingvotedthroughandapprovedbytheextraordinarygeneralmeetingofshareholders,theCompanyagreedtoincreasetheregisteredcapitalbyRMB8,492,308,withtheregisteredcapitalafterthechangeofRMB376,492,308.ThenewregisteredcapitalwassubscribedbyShenzhenCapitalGroupCo.,Ltd.(hereinafterreferredtoas“SCGC”)withRMB300.00million.Afterthecompletionofthecapitalincrease,theCompany'sownershipstructurewaschangedasfollows:
| Investor | Amountofcontribution(RMB10,000) | Proportion(%) |
| WinnerGroupLimited | 29,043.8848 | 77.1434 |
| LeyuanInvestment | 2,137.1232 | 5.6764 |
| YutongInvestment | 1,133.4400 | 3.0105 |
| HuikangInvestment | 684.4432 | 1.8179 |
| ZepengInvestment | 351.1088 | 0.9326 |
| SequoiaXinyuan | 3,450.0000 | 9.1635 |
| SCGC | 849.2308 | 2.2556 |
| Total | 37,649.2308 | 100.0000 |
AsofJune13,2018,ithasreceivedRMB300.00millionfromSCGCinmonetaryfunds.OnJune15,2018,ShenzhenAdministrationforMarketRegulationissuedtheNoticeofChange(Filing)(No.:21801665051)onthischangeandapprovedthecapitalincrease.TheCompanyamendedtheArticlesofAssociationinrespectoftheabovematters.TheCompanyamendedtheArticlesofAssociationinrespectoftheabovematters.ThiscapitalincreasewasverifiedbyBDOChinaShuLunPanCertifiedPublicAccountantsLLP(X.K.S.B.Zi[2018]No.ZI10525capitalverificationreport).OnFebruary28,2018,theCompanyobtainedtherenewedbusinesslicenseoftheenterpriselegalpersonissuedbyShenzhenAdministrationforMarketRegulationwiththeunifiedsocialcreditcode91440300723009295R.OnAugust,18,2020,afterthereplyofChinaSecuritiesRegulatoryCommissiononApprovaloftheRegistrationoftheInitialPublicOfferingofWinnerMedicalCo.,Ltd.(Z.J.X.K.[2020]No.1822),theCompanyissuedRMB50millionofcommonsharestothepublic,whichwaslistedontheShenzhenStockExchangeonSeptember17,2020.Uponcompletionoftheissuance,theregisteredcapitaloftheCompanywasRMB426,492,308.
Businessterm:sustainableoperation.Businessscope:productionandoperationofclassII,III6864medicalhygienematerials,medicalbiologicalmaterials,dressingsandproducts,medicalclothing,protectivearticles,textiles,non-wovenproductsandmoldedpackaging(theaboveproductsdonotincludethegoodssubjecttonationalexportlicenseadministration)andrelatedproducts,disposableconsumablesandmoldedpackaging;engaginginwholesale,importandexport,retail(includingonlinesales)andotherrelatedancillarybusinessesofallClassImedicaldevices,allClassIImedicaldevices(excludinginvitrodiagnosticreagents),ClassIIImedicaldevices:medicalhygienematerialsanddressings,medicalsuturematerialsandadhesives,medicalpolymermaterialsandproducts(exceptdisposabletransfusionapparatus(needle)),generaldiagnosticinstruments,medicalcoldtreatment,lowtemperature,refrigeratingequipmentandtools,cottonhouseholdarticles,cottonclothing,cottoncostume,cottonspunlacednon-wovenfabricanditsmanufacturedproducts,cotton,disinfectionproducts,dailynecessities,cosmetics,protectiveequipmentandinstrumentsandmeters(ifitdoesnotinvolvegoodssubjecttostatetrading,orinvolvesgoodssubjecttoquotas,licensemanagementandotherspecialprovisions,itshallapplyinaccordancewithrelevantregulationsofthestate);providethetechnicalconsulting,technicalservicesandafter-salesservicesofabove-mentionedproducts;sterilizationtechnicalservices(ifitneedstoobtainrelevantqualificationstooperate,itshallapplyinaccordancewithrelevantregulations);enterprisemanagementconsulting,businessinformationconsulting,economicinformationconsulting,warehouseservices(excludinghazardouschemicals,precursorchemicals,refinedoilandotherdangerousgoods),ownpropertyleasing(itcanbeoperatedonlywiththelegalrealestateownershipcertificateundertheCompany'sname).Theabovebusinessscopedoesnotincludetheitemssubjecttospecialadministrativemeasuresforaccessstipulatedbythestate,andthoseinvolvingtherecordandlicensingqualificationsneedtoobtaintherelevantcertificatesbeforeoperation.DomicileoftheCompany:F42,Building2,HuilongBusinessCenter,ShenzhenNorthRailwayStationArea,MinzhiSubdistrict,LonghuaDistrict,Shenzhen;WinnerIndustrialPark,No.660BulongRoad,LonghuaNewDistrict,Shenzhen.ThefinancialstatementswereapprovedbytheBoardofDirectorsoftheCompanyonApril23,2023.AsofDecember31,2022,thesubsidiariesintheconsolidatedfinancialstatementsoftheCompanyareasfollows:
| Subsidiaryname |
| WinnerMedical(Jingmen)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Jingmen)”) |
| YichangWinnerMedicalTextileCo.,Ltd.(hereinafterreferredtoas“WinnerMedical(Yichang)”) |
| WinnerMedical(Tianmen)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Tianmen)”) |
| WinnerMedical(Chongyang)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Chongyang)”) |
| WinnerMedical(Jiayu)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Jiayu)”) |
| WinnerMedical(HongKong)Ltd.(hereinafterreferredtoas“WinnerMedical(HongKong)”) |
| Winner(Huanggang)CottonProcessing&TradingCo.,Ltd.(hereinafterreferredtoas“Winner(Huanggang)Cotton”) |
| WinnerMedical(Huanggang)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Huanggang)”) |
| ShenzhenPurcottonTechnologyCo.,Ltd.(hereinafterreferredtoas“ShenzhenPurcotton”) |
| GuangzhouPurcottonMedicalTechnologyCo.,Ltd.(hereinafterreferredtoas“GuangzhouPurcotton”) |
| BeijingPurcottonTechnologyCo.,Ltd.(hereinafterreferredtoas“BeijingPurcotton”) |
| ShanghaiPurcottonTechnologyCo.,Ltd.(hereinafterreferredtoas“ShanghaiPurcotton”) |
| ShenzhenQianhaiPurcottonE-CommerceCo.,Ltd.(hereinafterreferredtoas“QianhaiPurcotton”) |
| WinnerMedicalMalaysiaSdn.Bhd.(hereinafterreferredtoas“WinnerMedicalMalaysia”) |
| WinnerMedical(Heyuan)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Heyuan)”) |
(continued)
| Subsidiaryname |
| WinnerMedical(Wuhan)Co.,Ltd.(hereinafterreferredtoas“WinnerMedical(Wuhan)”)(formername:HubeiWinnerMedicalCo.,Ltd.) |
| ShenzhenPureH2BTechnologyCo.,Ltd.(hereinafterreferredtoas“PureH2B”) |
| PureHB(Shanghai)Co.,Ltd.(hereinafterreferredtoas“PureHB(Shanghai)”) |
| ShenzhenPurunderwearSci-TechInnovationCo.,Ltd.(hereinafterreferredtoas“Purunderwear”) |
| HuanggangPurcottonLtd.(hereinafterreferredtoas“HuanggangPurcotton”) |
| WinnerMedicalTechnology(Foshan)Co.,Ltd.1*(hereinafterreferredtoas“WinnerMedical(Foshan)”) |
| ZhejiangLongtermMedicalTechnologyCo.,Ltd.2*(hereinafterreferredtoas“ZhejiangLongterm”) |
| Xi'anLongtemuMedicalTechnologyCo.,Ltd.3*(hereinafterreferredtoas“Xi'anLongtemu”) |
| HangzhouShengyiTechnologyCo.,Ltd.4*(hereinafterreferredtoas“HangzhouShengyi”) |
| DeqingLongtermMedicalSilicaGelProductsCo.,Ltd.5*(hereinafterreferredtoas“DeqingLongterm”) |
| LongtermMedicalUSLLC6*(hereinafterreferredtoas“AmericanLongterm”) |
| Winner(Guilin)LatexProductsCo.,Ltd.7*(hereinafterreferredtoas“Winner(Guilin)”) |
| WinnerPinganMedical(Hunan)Co.,Ltd.8*(hereinafterreferredtoas“WinnerPingan”) |
| HunanRuianMedicalDeviceTechnologyCo.,Ltd.9*(hereinafterreferredtoas“RuianMedicalDevice”) |
| ShenzhenJunjianMedicalDeviceCo.,Ltd.10*(hereinafterreferredtoas“JunjianMedical”) |
1*:WinnerMedical(Foshan)wasestablisedonSeptember20,2022.2*:ZhejiangLongtermwasmergedintheCompanyandaddedwithcapitalonApril30,2022.3*:Xi'anLongtemuisasubsidiaryofZhejiangLongterm.4*:HangzhouShengyiisasubsidiaryofZhejiangLongterm.5*:DeqingLongtermisasubsidiaryofZhejiangLongterm.6*:AmericanLongtemuisasubsidiaryofZhejiangLongterm.7*:Winner(Guilin)wasmergedintheCompanyandaddedwithcapitalonJune30,2022.8*:WinnerPinganwasmergedintheCompanyandaddedwithcapitalonJuly1,2022.9*:RuianMedicalDeviceisasubsidiaryofWinnerPingan.10*:JunjianMedicalwasmergedintheCompanyandaddedwithcapitalonOctober31,2022.Thescopeoftheconsolidatedfinancialstatementsforthisreportingperiodanditschangesaredetailedinthenotes“VIII.Consolidationscopechanges”and“IX.Interestsinotherentities”.
IV.PreparationBasisofFinancialStatements
1.Preparationbasis
ThisfinancialstatementispreparedinaccordancewiththeAccountingStandardforBusinessEnterprises--BasicStandardissuedbytheMinistryofFinance,variousspecialaccountingstandards,guidelineforapplicationofaccountingstandardforbusinessenterprises,ASBEinterpretationsandotherrelevantregulations(hereinaftercollectivelyreferredtoas“AccountingStandardforBusinessEnterprises”)andNo.15ofCompilationRulesforInformationDisclosurebyCompaniesOfferingSecuritiestothePublic-GeneralProvisionsofFinancialReportsissuedbyChinaSecuritiesRegulatoryCommission.
2.Continualoperation
TherearenoeventsaffectingtheCompany'sgoing-concernabilityanditisexpectedthattheCompanywillbeabletooperateasagoingconcernwithinthenext12months.TheCompany'sfinancialstatementsarepreparedonthebasisoftheassumptionofgoingconcern.V.SignificantAccountingPoliciesandAccountingEstimates
Specificaccountingpolicyandaccountingestimate:
ThefollowingsignificantaccountingpolicyandaccountingestimateoftheCompanyareformulatedinaccordancewiththeAccountingStandardsforBusinessEnterprises.ThebusinessnotmentionedisimplementedinaccordancewiththerelevantaccountingpoliciesintheAccountingStandardsforBusinessEnterprises.
1.StatementofcompliancewithAccountingStandardsforBusinessEnterprisesThesefinancialstatementscomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinance,andtrulyandcompletelyreflecttheconsolidatedandparentcompanyfinancialpositionoftheCompanyonDecember31,2022andthebusinessperformanceandcashflowsoftheCompanyin2022.
2.Accountingperiod
ThefiscalyearoftheCompanyrunsfromJanuary1toDecember31ofeachcalendaryear.
3.OperatingcycleTheoperatingcycleoftheCompanyis12months.
4.ReportingcurrencyThebookkeepingcurrencyoftheCompanyisRenminbi.
5.Accountingtreatmentofbusinesscombinationinvolvingenterprisesunderandnotundercommoncontrol
Businesscombinationinvolvingenterprisesunderthesamecontrol:theassetsandliabilitiesacquiredbythemergingpartyinthebusinesscombination(includingthegoodwillformedbythefinalcontrollingpartybypurchasingthemergedparty)shallbemeasuredonthebasisofthebookvalueoftheassetsandliabilitiesofthemergedpartyintheconsolidatedfinancialstatementsofthefinalcontrollingpartyonthemergerdate.Thedifferencebetweenthebookvalueofthenetassetsobtainedandtheconsiderationpaidforthecombination(ortotalparvalueofissuedshares)isadjustedagainstcapitalreserve(capitalstockpremium);ifthecapitalreserve(capitalstockpremium)isnotsufficienttoabsorbthedifference,theretainedearningsshallbeadjusted.Businesscombinationnotinvolvingenterprisesundercommoncontrol:thecostofcombinationisthefairvalueoftheassetspaid,liabilitiesincurredorassumedandequitysecuritiesissuedbytheacquirerontheacquiringdateforacquisitionofthecontrolrightoftheacquiree.Ifthecostofcombinationisgreaterthantheshareofthefairvalueoftheacquiree'sidentifiablenetassetsacquiredinthecombination,thedifferenceisrecognizedasgoodwill;ifthecostofcombinationislessthantheshareofthefairvalueoftheacquiree'sidentifiablenetassetsacquiredinthecombination,thedifferenceisincludedintheprofitandlossofthecurrentperiod.Theacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesobtainedbytheacquirerinthecombinationmeetingtherecognitionconditionsaremeasuredatfairvalueontheacquiringdate.Thedirectlyrelatedexpensesincurredforthebusinesscombinationareincludedintheprofitandlossofthecurrentperiod;thetransactioncostsassociatedwiththeissueofequityordebtsecuritiesforthebusinesscombinationareincludedintheinitiallyrecognizedamountsoftheequityordebtsecurities.
6.Methodsofpreparingconsolidatedfinancialstatements
1)ScopeofconsolidationTheconsolidationscopeoftheconsolidatedfinancialstatementsisdeterminedonacontrolbasisandincludestheCompanyandallsubsidiaries.ControlmeansthattheCompanyhasthepowerovertheinvestedentity,enjoysvariablereturnsbyparticipatingintherelevantactivitiesoftheinvestedentity,andhastheabilitytousethepowertoinfluencetheamountofreturns.
2)ConsolidationproceduresTheCompanyregardsthewholeenterprisegroupasanaccountingentityandpreparesconsolidatedfinancialstatementsinaccordancewithunifiedaccountingpoliciestoreflecttheoverallfinancialposition,operatingresultsandcashflowoftheenterprisegroup.TheimpactofinternaltransactionsbetweentheCompanyanditssubsidiariesandbetweenthesubsidiariesareoffset.Iftheinternaltransactionindicatesthatimpairmentlosshasoccurredtorelevantassets,suchlossshallberecognizedinfull.IftheaccountingpoliciesandtheaccountingperiodsadoptedbythesubsidiariesareinconsistentwiththoseoftheCompany,necessaryadjustmentsshallbemadeinaccordancewiththeaccountingpoliciesandtheaccountingperiodsoftheCompanywhenpreparingtheconsolidatedfinancialstatements.Theminorityshareholders'shareofthesubsidiary'sowners'equity,currentnetprofitandlossandcurrentcomprehensiveincomeshallbeseparatelylistedundertheowners'equityitemintheconsolidatedbalancesheet,underthenetprofititemandunderthetotalcomprehensiveincomeitemintheconsolidatedincomestatement.Ifthecurrentlosssharedbytheminorityshareholdersofthesubsidiaryexceedstheirshareintheowner'sequityofthesubsidiaryatthebeginningoftheperiod,theminorityequityshallbeoffsetbythebalance.
(1)IncreaseofsubsidiariesorbusinessDuringthereportingperiod,ifsubsidiariesorbusinessareincreasedduetobusinesscombinationinvolvingenterprisesunderthesamecontrol,theoperatingresultsandcashflowfromthebeginningofthecurrentperiodtotheendareincorporatedintotheconsolidatedfinancialstatements,andtheopeningbalanceintheconsolidatedfinancialstatementsandtherelateditemsincomparativestatementsareadjusted,whichshallberegardedthatthereportingsubjectaftercombinationhasbeenexistedsincetheinitialcontrolpointoftheultimatecontrollingparty.Iftheinvestedpartyunderthesamecontroliscontrolledbytheadditionalinvestmentandotherreasons,theequityinvestmentheldbeforeobtainingthecontrolofthemergedparty,andtherelevantprofitsandlosses,othercomprehensiveincomeandothernetassetsandothernetassetschangesbetweenthedateofacquisitionoftheoriginalequityandthedateonwhichthemergingpartyandthemergedpartyareunderthesamecontrol(whicheverislater)andthemergerdateshalloffsettheperiodofbetweentheopeningretainedearningsorcurrentprofitsandlossesinthecomparativereportingperiod.
Duringthereportingperiod,ifsubsidiariesorbusinessareincreasedduetobusinesscombinationofenterprisesnotunderthesamecontrol,itshallbeincludedintheconsolidatedfinancialstatementsasoftheacquisitiondateonthebasisofthefairvalueofallidentifiableassets,liabilitiesandcontingentliabilitiesdeterminedontheacquisitiondate.Ifitisabletoexercisecontrolovertheinvestedentitythatisnotunderthesamecontrolduetoadditionalinvestmentorotherreasons,theequityheldbytheacquireebeforetheacquisitiondateshallbere-measuredaccordingtothefairvalueoftheequityontheacquisitiondate,andthedifferencebetweenthefairvalueandthebookvalueshallbeincludedintothecurrentinvestmentincome.Othercomprehensiveincome,whichcanbereclassifiedintoprofitandlossinthefuture,andotherchangesinowners'equityundertheequitymethodasrelatedtotheacquiree'sequityheldbeforetheacquisitiondateareconvertedtotheinvestmentincomeofthecurrentperiodasoftheacquisitiondate.
(2)Disposalofsubsidiary
GeneraldisposalmethodWhentheCompanylosesthecontrolrightovertheinvestedentityduetodisposalofpartoftheequityinvestmentorotherreasons,theresidualequityinvestmentafterthedisposalshallbere-measuredatitsfairvalueonthedateoflosingthecontrolright.Thedifferencebetweenthesumoftheconsiderationacquiredbydisposaloftheequityandthefairvalueoftheresidualequity,minusthesumoftheshareofthenetassetsoftheoriginalsubsidiarycontinuouslycalculatedfromtheacquisitiondateorthemergingdateandthegoodwillaccordingtotheoriginalshareholdingratio,shallbeincludedintheinvestmentincomeintheperiodofloseofthecontrolright.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiarythatcanbereclassifiedintoprofitandlossinthefuture,andotherchangesinowners'equityundertheequitymethodareconvertedtotheinvestmentincomeintheperiodofloseofthecontrolright.
2Disposalofsubsidiarybysteps
Fordisposaloftheequityinvestmentinthesubsidiarybystepsthroughmultipletransactionstilllossofthecontrolright,theterms,conditionsandeconomicimpactofthedisposaloneachtransactioninrespectoftheequityinvestmentofthesubsidiaryaresubjecttooneormoreofthefollowingcircumstances,whichgenerallyindicatethatthemultipletransactionsarepackagedeals:
i.Thetransactionswereenteredintosimultaneouslyorwithconsiderationoftheirmutualinfluence;ii.Thesetransactionsasawholecanonlyachieveacompletebusinessresult;iii.Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;iv.Atransactionisnoteconomicalalone,buteconomicwhenconsideredwithothertransactions.Ifeachtransactionbelongstoapackagedeal,eachtransactionshallbesubjecttoaccountingtreatmentasadealfordisposalofsubsidiaryandlossofthecontrolright;thedifferencebetweenthedisposalpriceandtheshareofnetassetsofthesubsidiarycorrespondingtothedisposalofinvestmentbeforethelossofcontrolrightisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandtransferredintothecurrentprofitandlossintheperiodoflossofcontrolright.Ifeachtransactiondoesnotbelongtoapackagedeal,theequityinvestmentofthesubsidiaryshallbesubjecttoaccountingtreatmentwithoutlossofcontrolrightbeforelosingthecontrolright;andaccountingtreatmentshallbecarriedoutinaccordancewiththegeneraldisposalmethodofthesubsidiarywhenlosingthecontrolright.
(3)PurchaseoftheminorityequityofthesubsidiariesThedifferencebetweenthelong-termequityinvestmentobtainedduetothepurchaseofminorityequityandtheshareofthenetassetstobeenjoyedandcontinuouslycalculatedfromtheacquisitiondateormergingdateaccordingtotheincreasedshareholdingratioisadjustedagainstthecapitalstockpremiuminthecapitalreserveintheconsolidatedbalancesheet;ifthecapitalstockpremiuminthecapitalreserveisnotsufficienttooffsetthedifference,theretainedearningsshallbeadjusted.
(4)PartialdisposalofequityinvestmentinsubsidiarieswithoutlossofcontrolrightThedifferencebetweenthedisposalpriceandthedisposaloflong-termequityinvestmentandtheshareofthenetassetstobeenjoyedandcontinuouslycalculatedfromtheacquisitiondateormergingdate,isadjustedagainstthecapitalstockpremiuminthecapitalreserveintheconsolidatedbalancesheet;ifthecapitalstockpremiuminthecapitalreserveisnotsufficienttooffsetthedifference,theretainedearningsshallbeadjusted.
7.JointventurearrangementsclassificationandCo-operationaccountingtreatmentThejointventurearrangementisdividedintojointmanagementandjointventure.Jointmanagementmeansthejointventurearrangementinwhichthejointventurepartiesenjoytheassetsandassumestheliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheshareofinterestsinthejointoperation:
(1)RecognizetheassetsheldsolelybytheCompanyandtheassetsjointlyheldaccordingtotheshareoftheCompany;
(2)RecognizetheliabilitiesundertakensolelybytheCompanyandtheliabilitiesjointlyundertakenaccordingtotheshareoftheCompany;
(3)RecognizetheincomegeneratedfromthesaleoftheCompany'sshareofthejointoperationoutput;
(4)RecognizetheincomegeneratedfromthesaleofoutputsofthejointoperationaccordingtotheshareoftheCompany;
(5)RecognizetheexpensesincurredseparatelyandtheexpensesincurredinjointoperationaccordingtotheshareoftheCompanyTheCompany'sinvestmentinthejointventureshallbeaccountedbytheequitymethod.PleaserefertoNote“V.22.Long-termequityinvestment”fordetails.
8.DeterminingstandardsofcashandcashequivalentsCashrepresentstheCompany'scashonhandandthedepositreadilyavailableforpayment.Cashequivalentsrepresenttheshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandthataresubjecttoaninsignificantriskofchangeinvalue.
9.Foreigncurrencytransactionandforeigncurrencystatementtranslation
1)ForeignCurrencyBusinessForeigncurrencytransactionadoptsthespotexchangerateonthedateofthetransactionastheconversionexchangeratetoconverttheforeigncurrencyamountintoRMBforbookkeeping.Atthebalancesheetdate,thebalanceofforeigncurrencymonetaryitemsisconvertedbyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingtherefromarerecognizedincurrentprofitandloss,excepttheexchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationaretreatedaccordingtothecapitalizationofborrowingcosts.
2)ConversionoffinancialstatementsdenominatedinforeigncurrenciesTheassetandliabilityitemsintheforeigncurrencybalancesheetsshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner'sequityitems,exceptthe“undistributedprofits”,othersitemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Theincomeandexpenseitemsintheincomestatementareconvertedatthespotrateonthedateoftransaction.Whendisposingoftheoverseasoperation,thebalanceofthefinancialstatementsdenominatedinforeigncurrenciesrelatedtotheoverseasoperationshallbetransferredfromtheowner'sequityitemtotheprofitandlossofthedisposalperiod.
10.FinancialinstrumentsTheCompanyrecognizesafinancialasset,financialliabilityorequityinstrumentwhenbecomingapartyofthefinancialinstrumentcontract.
1)ClassificationoffinancialinstrumentsAccordingtotheCompany'sbusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,thefinancialassetsareclassifiedattheinitialrecognitionas:financialassetsmeasuredattheamortizedcost,financialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome,andfinancialassetsatfairvalueofwhichchangesarerecordedincurrentprofitandloss.
TheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesarerecordedintotheprofitsandlossesofthecurrentperiodasfinancialassetsmeasuredattheamortizedcost:
—Thebusinessmodelisaimedatcollectingcontractcashflows;—Thecontractcashflowisonlythepaymentoftheprincipalandinterestbasedontheoutstandingprincipalamount.TheCompanyclassifiesthefinancialassetsthatmeetthefollowingconditionsandarenotdesignatedtobemeasuredatfairvalueandwhosechangesarerecordedintotheprofitsandlossesofthecurrentperiodasfinancialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome(debtinstrument):
—Thebusinessmodelisaimedatcollectingcontractcashflowsandthesaleofsuchfinancialassets;—Thecontractcashflowisonlythepaymentoftheprincipalandinterestbasedontheoutstandingprincipalamount.Fornon-tradingequityinstrumentinvestments,theCompanymay,atthetimeofinitialrecognition,irrevocablydesignatethemasfinancialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome(equityinstrument).Thedesignationismadeonasingleinvestmentbasisandtherelatedinvestmentsmeetthedefinitionofanequityinstrumentfromanissuer'sperspective.Excepttheabovefinancialassetsmeasuredattheamortizedcostandthefinancialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome,theCompanyclassifiesallotherfinancialassetsasfinancialassetsatfairvalueofwhichchangesarerecordedincurrentprofitandloss.Uponinitialrecognition,ifaccountingmismatchescanbeeliminatedorsignificantlyreduced,theCompanymayirrevocablydesignatethefinancialassetsthatshouldhavebeenclassifiedasthosemeasuredattheamortizedcostormeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincomeasthefinancialassetsmeasuredatfairvalueofwhichchangesarerecordedincurrentprofitandloss.Financialliabilitiesareclassifiedattheinitialrecognitionas:financialliabilitiesmeasuredatfairvalueofwhichchangesarerecordedincurrentprofitandlossandfinancialliabilitiesmeasuredattheamortizedcost.Financialliabilitiesthatmeetoneofthefollowingconditionsmaybedesignatedattheinitialrecognitionasthefinancialliabilitiesmeasuredatfairvalueofwhichchangesarerecordedincurrentprofitandloss.
1Thisdesignationcaneliminateorsignificantlyreduceaccountingmismatches.2Manageandconductperformanceevaluationofthefinancialliabilityportfolioorfinancialassetsandfinancialliabilityportfolioonthebasisoffairvalueaccordingtotheenterpriseriskmanagementorinvestmentstrategysetforthintheofficialwrittendocuments,andreporttothekeymanagementpersonnelwithintheenterpriseonthisbasis.
Thefinancialliabilitycontainsembeddedderivativesthatneedtobesplitseparately.
2)Recognitionbasisandmeasurementmethodoffinancialinstruments
(1)Financialassetmeasuredonthebasisofpost-amortizationcostsThefinancialassetsmeasuredattheamortizedcostsincludebillsreceivable,accountsreceivable,otherreceivables,long-termreceivables,debtinvestment,etc.,whichshallbeinitiallymeasuredatfairvalue,andtherelevanttransactionexpensesareincludedintheinitialrecognizedamount;thereceivablesexcludingmajorfinancingcomponentsandtheaccountsreceivablethattheCompanydecidesnottoconsiderthefinancingcomponentsoflessthanoneyearshallbeinitiallymeasuredatthecontracttransactionprice.Theinterestcalculatedbytheeffectiveinterestratemethodduringtheholdingperiodisrecordedintothecurrentprofitandloss.Uponrecoveryordisposal,thedifferencebetweenthepriceobtainedandthebookvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
(2)Financialassetsmeasuredatfairvalueofwhichthechangesareincludedinothercomprehensiveincome(debt
instrument)Financialassetsmeasuredatfairvalueofwhichthechangesareincludedinothercomprehensiveincome(debtinstrument),includingreceivablesfinancingandotherdebtinvestments,areinitiallymeasuredatfairvalueandrelatedtransactioncostsareincludedintheinitialrecognizedamount.Thefinancialassetissubsequentlymeasuredatitsfairvalue,andchangesinthefairvaluearerecordedinothercomprehensiveincome,excepttheinterest,impairmentlossorgainsandexchangegainandlosscalculatedbytheeffectiveinterestratemethod.Uponthede-recognition,theaccumulatedgainsorlossespreviouslyrecordedinothercomprehensiveincomewillbe
transferredfromothercomprehensiveincometocurrentprofitandloss.
(3)Financialassetsmeasuredatfairvalueofwhichthechangesareincludedinothercomprehensiveincome(equityinstrument)Financialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome(equityinstrument),includingotherequityinstrumentinvestment,areinitiallymeasuredatfairvalueandrelatedtransactioncostsareincludedintheinitialrecognizedamount.Suchfinancialassetsaresubsequentlymeasuredatthefairvalueandthechangeinthefairvalueisrecordedintoothercomprehensiveincome.Thedividendsobtainedarerecordedincurrentprofitandloss.Uponthede-recognition,theaccumulatedgainsorlossespreviouslyrecordedinothercomprehensiveincomewillbetransferredfromothercomprehensiveincometoretainedearnings.
(4)FinancialassetsmeasuredatfairvalueofwhichthechangesareincludedincurrentprofitandlossFinancialassetsmeasuredatfairvalueofwhichchangesarerecordedincurrentprofitandloss,includingtradingfinancialassets,derivativefinancialassets,othernon-currentfinancialassets,etc.,areinitiallymeasuredatfairvalueandrelatedtransactionexpensesarerecordedincurrentprofitandloss.Suchfinancialassetsaresubsequentlymeasuredatthefairvalueandthechangeinthefairvalueisrecordedintocurrentprofitandloss.
(5)FinancialliabilitiesmeasuredatfairvaluesofwhichthechangesareincludeinthecurrentprofitsorlossesFinancialliabilitiesmeasuredatfairvalueofwhichchangesareincludedincurrentprofitandloss,includingtradingfinancialliabilities,derivativefinancialliabilities,etc.,areinitiallymeasuredatfairvalueandrelatedtransactionexpensesarerecordedincurrentprofitandloss.Suchfinancialliabilitiesaresubsequentlymeasuredatthefairvalueandthechangeinthefairvalueisrecordedintocurrentprofitandloss.Uponthede-recognition,thedifferencebetweenitsbookvalueandtheconsiderationpaidisrecordedincurrentprofitandloss.
(6)FinancialliabilitiesmeasuredattheamortizedcostFinancialliabilitiesmeasuredatamortizedcost,includingshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayables,areinitiallymeasuredatfairvalue,andrelatedtransactionexpensesareincludedintheinitialrecognizedamount.Theinterestcalculatedbytheeffectiveinterestratemethodduringtheholdingperiodisrecordedintothecurrentprofitandloss.Uponthede-recognition,thedifferencebetweentheconsiderationpaidandthebookvalueofsuchfinancialliabilityisrecordedincurrentprofitandloss.
3)De-recognitionandtransferoffinancialassetsTheCompanyshallderecognizethefinancialassetsifoneofthefollowingconditionsissatisfied:
—Terminationofthecontractualrighttocollectthecashflowoffinancialassets;—Thefinancialassetshavebeentransferred,andalmostalltherisksandremunerationinitsownershiphavebeentransferredtothetransferee;—Thefinancialassetshavebeentransferred,andwhiletheCompanyhasneithertransferrednorretainedvirtuallyalloftherisksandremunerationintheownershipofthefinancialassets,ithasnotretainedcontrolofthefinancialassets.Intheeventofafinancialassettransfer,ifalmostalltherisksandremunerationintheownershipofthefinancialassetareretained,therecognitionofthefinancialassetwillnotbeterminated.Theprincipleofsubstanceoverformisadoptedwhenjudgingwhetherthetransferoffinancialassetsmeetstheaboveconditionsforde-recognitionoffinancialassets.TheCompanydividesthetransferoffinancialassetsintothewholetransferoffinancialassetsandthepartialtransferoffinancialassets.Iftheoveralltransferofthefinancialassetmeetsthede-recognitionconditions,thedifferencebetweenthefollowingtwoamountsshallberecordedintothecurrentprofitsandlosses:
(1)Thebookvalueofthetransferredfinancialasset;
(2)Thesumoftheconsiderationreceivedfromthetransferandthecumulativeamountofthefairvaluechangesoriginally
includedinowner'sequitydirectly(wherethefinancialassetinvolvedinthetransferismeasuredatfairvalueandthechangeisrecordedinothercomprehensiveincome(debtinstrument)).Ifthepartialtransferofthefinancialassetmeetsthede-recognitionconditions,thebookvalueoftheoveralltransferredfinancialassetisdistributedbetweenthederecognizedandnon-derecognizedpartaccordingtotherelativefairvalueandthedifferencebetweenthefollowingtwoamountsisincludedincurrentprofitandloss:
(1)Thebookvalueofderecognizedpart;
(2)Sumoftheconsiderationofthederecognizedpartandtheamountofcorrespondingderecognizedpartinthetotalfairvaluechangesoriginallyincludedinowner'sequitydirectly(wherethefinancialassetinvolvedinthetransferismeasuredatfairvalueandthechangeisrecordedinothercomprehensiveincome(debtinstrument)).Ifthetransferofthefinancialassetdoesnotmeettheconditionsofde-recognition,suchfinancialassetshallcontinuetoberecognizedandtheconsiderationreceivedshallberecognizedasafinancialliability.
4)De-recognitionoffinancialliabilitiesWherethecurrentobligationofafinancialliabilityhasbeendischargedinwholeorinpart,suchfinancialliabilityorpartthereofshallbederecognized;iftheCompanyentersintoanagreementwiththecreditortoreplacetheexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesandtheexistingfinancialliabilitiesaresubstantiallydifferent,theCompanyshallderecognizetheexistingfinancialliabilitiesandrecognizethenewfinancialliabilitiesatthesametime.Ifallorpartofthecontracttermsoftheexistingfinancialliabilitiesaresubstantiallymodified,theexistingfinancialliabilityorpartthereofshallbederecognized,andthefinancialliabilitiesafterthemodificationshallberecognizedasnewfinancialliabilities.Whenafinancialliabilityisderecognizedinwholeorinpart,thedifferencebetweenthebookvalueofthederecognizedfinancialliabilityandtheconsiderationpaid(includingnon-cashassettransferredoutorthenewfinancialliabilityundertaken)isrecordedincurrentprofitandloss.IftheCompanyrepurchasespartofthefinancialliability,itshallallocatetheoverallbookvalueofthefinancialliabilityontherepurchasedateaccordingtotherelativefairvalueofthecontinuingrecognitionpartandthede-recognitionpart.Thedifferencebetweenthebookvalueallocatedtothederecognizedpartandtheconsiderationpaid(includingnon-cashassettransferredoutortheliabilityundertaken)isrecordedincurrentprofitandloss.
5)FairvaluedeterminationmethodoffinancialassetsandfinancialliabilitiesThefairvalueofafinancialinstrumentwithanactivemarketshallberecognizedbasedonthequotationintheactivemarket.Thefairvalueofafinancialinstrumentwithoutanactivemarketshallberecognizedbymeansofvaluationtechniques.Uponvaluation,theCompanyadoptsvaluationtechniquesapplicabletothecurrentsituationandsupportedbysufficientavailabledataandotherinformation,selectsinputvaluesconsistentwiththeassetorliabilitycharacteristicsconsideredbymarketparticipantsinthetransactionofrelatedassetsorliabilities,andgivesprioritytorelevantobservableinputvalues.TheCompanyusesnon-observableinputvaluesonlywhenrelevantobservableinputvaluescannotbeobtainedorarenotpracticabletoobtain.
6)TestmethodandaccountingtreatmentmethodoffinancialassetsimpairmentTheCompanyestimatestheexpectedcreditlossesoffinancialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvalueofwhichchangesarerecordedintoothercomprehensiveincome(debtinstrument)andfinancialguaranteecontractsonasingleorcombinedbasis.TheCompanycalculatestheprobabilisticweightedamountofthepresentvalueofthedifferencebetweenthecashflowsreceivableunderthecontractsandthecashflowsexpectedtobereceivedandrecognizestheexpectedcreditloss,takingintoaccountreasonableandevidentialinformationconcerningpastevents,currentconditionsandprojectionsoffutureeconomicconditions,andweightingtheriskofdefault.Ifthecreditrisksofsuchfinancialinstrumenthaveincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasureitslossprovisionaccordingtotheamountequivalenttotheexpectedcreditlossintheentiredurationofsuchfinancialinstrument.Ifthecreditrisksofsuchfinancialinstrumenthavenotincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionaccordingtotheamountequivalenttotheexpectedcreditlossofsuchfinancialinstrumentinthenext12months.Theamountoftheincreaseorreversalofthelossprovisionresultingtherefromshallberecordedintothecurrentprofitandlossasanimpairmentlossorprofit.Bycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultontheinitial
recognitiondate,theCompanydeterminesthechangeofthedefaultriskduringtheexpecteddurationofthefinancialinstruments,soastoassesswhetherthecreditrisksoffinancialinstrumentshavesignificantlyincreasedsincetheinitialrecognition.Ingeneral,theCompanywillconsiderthatthecreditrisksofthefinancialinstrumenthasincreasedsignificantlyifitismorethan30daysoverdue,unlessthereisconclusiveevidencethatthecreditrisksofsuchfinancialinstrumenthavenotincreasedsignificantlysincetheinitialrecognition.Ifthecreditrisksofthefinancialinstrumentarelowonthebalancesheetdate,theCompanyconsidersthatthecreditrisksofthefinancialinstrumenthavenotincreasedsignificantlysincetheinitialrecognition.Ifthereisobjectiveevidencethatacertainfinancialassethassufferedcreditimpairment,theCompanyshallmakeprovisionfortheimpairmentofthefinancialassetonanindividualbasis.ForreceivablesandcontractassetsformedbytransactionsregulatedbyAccountingStandardsforBusinessEnterprisesNo.14-Revenue(2017),theCompanyalwaysmeasuresitslossprovisionatanamountequivalenttotheexpectedcreditlossovertheentireduration,whetherornotitcontainsmajorfinancingcomponents.Forleasereceivable,theCompanyshallalwaysmeasureitslossprovisionaccordingtotheamountequivalenttotheexpectedcreditlosswithintheentireduration.IftheCompanynolongerreasonablyexpectsthatthecontractcashflowofafinancialassetcanberecoveredinwholeorinpart,itwilldirectlywritedownthebookbalanceofsuchfinancialasset.
11.Notesreceivable
See“12.Accountsreceivable”fordetails.
12.Accountsreceivable
1)ImpairmentofnotesreceivableandaccountsreceivableFornotesreceivableandaccountsreceivable,whetherornottheycontainmajorfinancingcomponents,theCompanyalwaysmeasuresitslossprovisionatanamountequivalenttotheexpectedcreditlossovertheentireduration,andtheincreaseorreversalamountofthelossprovisionthusformedisrecordedintothecurrentprofitandlossasimpairmentlossorgain.Fornotesreceivable,theCompanyshallalwaysmeasureitslossprovisionaccordingtotheamountequivalenttotheexpectedcreditlosswithintheentireduration.Basedonthecreditriskcharacteristicsofnotesreceivable,itisdividedintodifferentportfolios:
| Item | Basisforrecognitionofcombinationandaccrualmethodofprovisionforbaddebt |
| Bankacceptancebill | Iftheacceptorisabankwithhighercreditrating(suchaslargestate-ownedcommercialbanksandlistedjoint-stockcommercialbanks),noprovisionforbaddebtsshallbemade;iftheacceptorisanotherbankorfinancialcompany,theexpectedcreditlossisanalyzedbasedonhistoricalinformationandjudgedwhetheritisnecessarytomakeprovisionforbaddebts. |
| Tradeacceptance | Iftheacceptorisanon-financialinstitution,itsdivisionisthesameasthatofaccountsreceivable(ifaccountsreceivablearetransferredtonotesreceivables,theageofaccountsiscalculatedcontinuously). |
TheCompanycombinesthenotesreceivable-tradeacceptance,accountsreceivableandprepaymentswithsimilarcreditriskcharacteristics(aging),andestimatestheproportionofbaddebtprovisionfornotesreceivable-tradeacceptance,accountsreceivableandprepaymentsbasedonallreasonableandinformedinformation,includingforward-lookinginformation.Ifthereisobjectiveevidencethatacertainnotereceivable,accountreceivableorprepaymenthasincurredcreditimpairment,theCompanyshallmakeaprovisionforbaddebtsforthenotereceivableoraccountreceivableorprepaymentseparatelyandrecognizetheexpectedcreditloss.
2)OtherreceivablesThemeasurementofimpairmentlossofotherreceivablesotherthanaccountsreceivableandnotesreceivable(includingotherreceivables,long-termreceivables,etc.),shallbemadebreferringtothe“V.10.Financialinstruments6)Testmethodandaccountingtreatmentmethodoffinancialassets(excludingreceivables)impairment”.
13.AmountsreceivablefinancingPleasereferto“10.Financialinstruments”.
14.Otherreceivables
RecognitionmethodandaccountingtreatmentmethodoftheexpectedcreditlossofotherreceivablesRecognitionmethodandaccountingtreatmentmethodoftheexpectedcreditlossofotherreceivablesForthemeasurementofimpairmentlossofotherreceivablesotherthanaccountsreceivableandnotesreceivable(includingotherreceivables,long-termreceivables,etc.),itshallbetreatedbyreferringtothe“V.10.Financialinstruments6)Testmethodandaccountingtreatmentmethodoffinancialassets(excludingreceivables)impairment”.
15.Inventory
1)ClassificationandcostofinventoriesTheinventoriesareclassifiedasrawmaterials,lowpricedandeasilywornarticles,merchandiseinventory,workinprogress,goodsshippedintransit,goodsprocessedbycommission,wrappage,etc.Inventoriesareinitiallymeasuredatcost.Theinventorycostincludesprocurementcosts,processingcosts,andotherexpensesincurredtobringtheinventorytoitscurrentlocationandcondition.
2)ValuationmethodofdeliveredinventoryThesalesofpurchasedfinishedproductsarepricedaccordingtothemovingweightedaveragemethodatthetimeofshipment;thesalesofself-producedproductsarepricedaccordingtothestandardcostmethodatthetimeofshipment,andthedifferencebetweentheactualcostandthestandardcostshallbeapportionedaccordingtotheinventoryandsalesratioattheendoftheperiod.
3)RecognitionbasisofnetrealizablevalueofdifferenttypesofinventoriesTheinventoriesshallbemeasuredonthebalancesheetdateaccordingtothecostofinventoriesornetrealizablevalue,whicheverislower.Ifthecostoftheinventoriesishigherthanthenetrealizablevalue,theinventoryfallingpricereservesshallbewithdrawn.Thenetrealizablevalueofinventoriesistheamountoftheestimatedsalepriceoftheinventoriessubtractedbytheestimatedcostabouttooccurincompletion,estimatedsellingexpensesandrelatedtaxesindailyactivities.Forthefinishedproducts,merchandiseinventory,materialsforsaleandothermerchandiseinventoriesdirectlyusedforsale,thenetrealizablevalueisrecognizedbytheamountoftheestimatedsalepriceoftheinventoriessubtractedbytheestimatedsellingexpensesandrelatedtaxesinnormalproductionandoperationprocess;forthematerialinventoryrequiredtobeprocessed,thenetrealizablevalueisrecognizedbytheamountoftheestimatedsalepriceofthefinishedproductssubtractedbytheestimatedcostabouttooccurincompletion,estimatedsellingexpensesandrelatedtaxesinnormalproductionandoperationprocess;fortheinventoriesheldtoperformthesalescontractorlaborcontract,thenetrealizablevalueiscalculatedonthebasisofcontractprice.Ifthenumberoftheinventoriesheldisgreaterthanthequantityorderedinthesalescontract,thenetrealizablevalueoftheexcessiveinventoriesiscalculatedonthebasisofgeneralsaleprice.Iftheinfluencefactorswritingdowntheinventoryvaluebeforehavedisappearedafterwithdrawaloftheinventoryfallingpricereserves,resultinginthenetrealizablevalueoftheinventorieshigherthanthebookvalue,theamountwrittendownisreversedwithintheoriginallywithdrawnamountofinventoryfallingpricereservesandtheamountreversedisincludedincurrentprofitsandlosses.
4)InventorysystemTheperpetualinventorysystemisadopted.
5)Amortizationmethodsoflowpricedandeasilywornarticlesandwrappage
(1)The50-50amortizationmethodisadoptedforlow-valueconsumables;
(2)Thepackagingadoptstheone-timewrite-offmethod.
16.Contractassets
1)MethodsandstandardsfortherecognitionofcontractassetsTheCompanyliststhecontractualassetsorcontractualliabilitiesinthebalancesheetaccordingtotherelationshipbetweenperformanceobligationsandcustomerpayment.TheCompany'srightstoreceiveconsiderationforthetransferofgoodsorservicestothecustomer(andsuchrightsaresubjecttofactorsotherthanthepassageoftime)arelistedascontractualassets.Thecontractualassetsandcontractualliabilitiesunderthesamecontractarelistedinthenetamount.TherightsthattheCompanyownsandunconditionally(dependingonlyonthepassageoftime)tocollectconsiderationfromthecustomerarelistedseparatelyasreceivables.
2)RecognitionmethodandaccountingtreatmentmethodoftheexpectedcreditlossofcontractualassetsFortherecognitionmethodsandaccountingtreatmentmethodsoftheexpectedcreditlossofthecontractassets,pleaserefertoNote“V.10.FinancialInstruments6)Testingmethodandaccountingtreatmentmethodoffinancialassetsimpairment(excludingreceivables)”.
17.ContractcostContractcostincludesthecontractperformancecostandthecontractacquisitioncost.IfthecostincurredbytheCompanyfortheperformanceofthecontractisnotwithinthescopeofrelevantstandardsforinventory,fixedassetsorintangibleassets,itshallberecognizedasanassetasacontractperformancecostwhenthefollowingconditionsaremet:
●Thecostisdirectlyrelatedtoacurrentoranticipatedcontract.
●ThecostincreasestheCompany'sfutureresourcestomeetitsperformanceobligations.
●Thecostisexpectedtoberecoverable.
IftheCompanyisexpectedtorecovertheincrementalcostincurredinacquiringthecontract,itshallberecognizedasanassetasthecontractacquisitioncost.Assetsrelatedtocontractcostsareamortizedonthesamebasisasincomerecognitionofgoodsorservicesrelatedtotheasset;however,iftheamortizationperiodofthecontractacquisitioncostislessthanoneyear,theCompanyshallrecorditintothecurrentprofitandlosswhenitisincurred.Ifthebookvalueofanassetrelatedtothecontractcostishigherthanthedifferencebetweenthefollowingtwoitems,theCompanyshalldrawanimpairmentprovisionfortheexcessportionandrecognizeitastheassetsimpairmentloss:
(1)Remainingconsiderationexpectedtobeobtainedasaresultofthetransferofthegoodsorservicesrelatedtotheasset;
(2)Thecostsisestimatedandtobeincurredforthetransferoftherelevantgoodsorservices.Ifthefactorsofimpairmentinthepreviousperiodchangeandmakethedifferenceabovehigherthanthebookvalueoftheasset,theCompanyshallreversethewithdrawnimpairmentprovisionandincludeitintothecurrentprofitandloss,butthebookvalueofthereversedassetshallnotexceedthebookvalueofsuchassetonthereversaldateiftheimpairmentprovisionisnotwithdrawn.
18.AssetsheldforsalesIfthebookvalueofanassetisrecoveredmainlythroughthesale(includingthenon-monetaryassetsexchangeofcommercialnature)ratherthancontinuoususeofanon-currentassetordisposalgroup,suchassetisclassifiedasanassetheldforsale.TheCompanyclassifiesnon-currentassetsordisposalgroupsasheldforsaleiftheymeetthefollowingconditionssimultaneously:
(1)Immediatelyavailableforsaleundercurrentconditionsinaccordancewiththeusualpracticeofsellingsuchtypeofassetsordisposalgroupsinsimilartransactions;
(2)Thesaleishighlylikely,thatis,theCompanyhasresolvedasaleplanandobtainedafirmpurchasecommitment,and
thesaleisexpectedtobecompletedwithinoneyear.WheretherelevantprovisionsrequiretheapprovaloftherelevantauthorityorregulatoryauthorityoftheCompanybeforethesale,theapprovalhasbeenobtained.Whereitisclassifiedasnon-currentassets(notincludingfinancialassets,deferredincometaxassets,investmentpropertiesthataresubsequentlymeasuredthroughthefairvaluemodel,theassetsformedbytheemployeecompensation)ordisposalgroupsheldforsale,ifitsbookvalueishigherthanthenetamountofthefairvalueminusthesellingexpense,thebookvalueiswrittendowntothenetamountofthefairvalueminusthesellingexpense,theamountwrittendownisrecognizedastheassetsimpairmentlossandincludedinthecurrentprofitandloss,andtheimpairmentprovisionforassetsheldforsaleshallbemadeatthesametime.
19.Debtinvestment
Pleasereferto“10.Financialinstruments”.
20.Otherdebtinvestments
Pleasereferto“10.Financialinstruments”.
21.Long-termreceivables
Notapplicable.
22.Long-termequityinvestment
1)CriteriafordeterminingjointcontrolandsignificantinfluenceJointcontrolreferstothejointcontroloveranarrangementinaccordancewiththerelevantagreement,andtherelatedactivitiesofthearrangementcanonlybedecidedupontheunanimousconsentofthepartiessharingthecontrol.WheretheCompanyandotherjointventurepartiesjointlyexercisejointcontrolovertheinvestedentityandenjoyrightsoverthenetassetsoftheinvestedentity,theinvestedentityshallbeajointventureoftheCompany.Significantinfluencemeansthepowertoparticipateintheformulationoffinancialandoperatingdecisionsoftheinvestedentity,butnotthepowertocontrolorjointlycontroltheformulationofthesepoliciestogetherwithotherparties.IftheCompanyisabletoexertsignificantinfluenceontheinvestedentity,theinvestedentityisajointventureoftheCompany.
2)Recognitionofinitialinvestmentcost
(1)Long-termequityinvestmentformedbybusinesscombinationForthelong-termequityinvestmentinasubsidiaryformedbybusinesscombinationundercommoncontrol,theshareofthebookvalueoftheowner'sequityofthecombiningpartyintheconsolidatedfinancialstatementsofthefinalcontrollingparty,onthecombinationdate,isregardedastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthebookvalueofpaidconsiderationshalladjustthecapitalstockpremiumincapitalreserve.Ifthecapitalstockpremiumincapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.Whereitimplementsthecontrolupontheinvestedentityunderthesamecontrolduetoadditionalinvestmentorotherreasons,thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentrecognizedaccordingtotheaboveprincipleandthesumofthebookvalueofthelong-termequityinvestmentbeforethecombinationplusthebookvalueofthenewconsiderationfortheacquisitionoffurthersharesonthemergingdateshalladjustthecapitalstockpremium.Ifthecapitalstockpremiumisinsufficienttooffset,theretainedearningsshallbeoffset.
Forthelong-termequityinvestmentinasubsidiaryformedbybusinesscombinationnotundercommoncontrol,thecombinedcostrecognizedontheacquisitiondateisregardedastheinitialcostofthelong-termequityinvestment.Whereitimplementsthecontrolupontheinvestedentitynotunderthesamecontrolduetoadditionalinvestmentandotherreasons,thesumofthebookvalueoftheoriginalequityinvestmentplusthenewinvestmentcostistakenastheinitialinvestmentcost.
(2)Long-termequityinvestmentacquiredbymeansotherthanbusinesscombinationIfthelong-termequityinvestmentisacquiredbymeansofcashpayment,theinitialinvestmentcostshallbethepurchasepriceactuallypaid.Ifthelong-termequityinvestmentisacquiredbyissuingequitysecurities,theinitialinvestmentcostshallbethefairvalueoftheissuedequitysecurities.
3)SubsequentMeasurementandApproachfortheDeterminationofProfitandLoss
(1)Long-termequityinvestmentcheckedbycostmethodThelong-termequityinvestmentmadebytheCompanyinitssubsidiariesadoptsthecostmethod,unlesstheinvestmentmeetstheconditionsofholdingforsale.Exceptforcashdividendsorprofitsalreadydeclaredbutnotyetpaidthatareincludedinthepriceorconsiderationactuallypaiduponacquisitionoftheinvestment,theCompanyrecognizetheinvestmentincomeincurrentperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestedentity.
(2)Long-termequityinvestmentcheckedbyequitymethodThelong-termequityinvestmentofjointventuresandcooperativeenterprisesshallbecalculatedbytheequitymethod.Theinitialinvestmentcostofthelong-termequityinvestmentisnotadjustedifitisgreaterthanthedifferencebetweenthefairvalueshareofthenetidentifiableassetsoftheinvestedentityintheinvestment;iftheinitialinvestmentcostofthelong-termequityinvestmentislessthanthedifferencebetweenthefairvalueshareofthenetidentifiableassetsoftheinvestedentityintheinvestment,itisrecordedincurrentprofitandlossandthecostofthelong-termequityinvestmentisadjusted.TheCompanyrecognizestheinvestmentincomeandothercomprehensiveincomeaccordingtoitsshareofnetprofitorlossandothercomprehensiveincomeoftheinvestedentity,andadjuststhebootvalueofthelong-termequityinvestmentaccordingly;theCompanydecreasesthebookvalueofthelong-termequityinvestmentaccordinglyinaccordancewiththeshareoftheprofitdistributionorcashdividendsdeclaredbytheinvestedentity;forchangesinowner'sequityoftheinvestedentityotherthanthosearisingfromitsnetprofitorloss,othercomprehensiveincomeandprofitdistribution(abbreviatedas“otherchangesinowner'sequity”),theCompanyadjuststhebookvalueofthelong-termequityinvestmentandrecordsintheowner'sequity.Uponrecognizingtheshareofthenetprofitandloss,othercomprehensiveincomeandotherchangesinowner'sequityoftheinvestedentity,itshallberecognizedafteradjustingthenetincomeandothercomprehensiveincomeoftheinvestedentityonthebasisofthefairvalueoftheidentifiablenetassetsoftheinvestedentitywhenobtainingtheinvestment,andinaccordancewiththeCompany'saccountingpoliciesandaccountingperiods.TheprofitsandlossesofunrealizedinternaltransactionsbetweentheCompanyandjointventures,cooperativeenterprisesshallbecalculatedaccordingtotheproportionthatshallbeenjoyedbytheCompanyandshallbeoffset.Onthisbasis,investmentincomeshallberecognized,exceptthattheassetsinvestedorsoldconstitutebusiness.TheunrealizedinternaldeallossbetweentheCompanyandtheinvestedentityisrecognizedinfullamountifattributabletotheassetsimpairmentloss.ThenetlossincurredbytheCompanytothecooperativeenterpriseorjointventure,exceptfortheliabilityforadditionalloss,shallbewrittendowntozerobythebookvalueoflong-termequityinvestmentandotherlong-termequitysubstantiallyconstitutingthenetinvestmentinthecooperativeenterpriseorjointventure.Ifthecooperativeenterpriseorjointventureachievesthenetprofitsinthelaterperiods,theCompanyrecoverstorecognizethegainsharingamountaftermakingupfortheunrecognizedlosssharingamountwiththegainsharingamount.
(3)Disposaloflong-termequityinvestmentOndisposalofthelong-termequityinvestment,thebalancebetweenthebookvalueoftheequitydisposedofandtheactualpriceobtainedischargedtocurrentprofitandloss.Ifpartofthelong-termequityinvestmentisdisposedofbytheequitymethod,andtheremainingequityisstillaccountedbytheequitymethod,theothercomprehensiveincomerecognizedbytheoriginalequitymethodshallbecarriedforwardonthesamebasisastherelevantassetsorliabilitiesdirectlydisposedofbytheinvestedentityatthecorrespondingproportion,andthechangesinotherowners'equityshallbecarriedforwardtothecurrentprofitandlossonaproportionalbasis.Ifthejointcontrolorsignificantinfluenceontheinvestedentityislostduetothedisposalofequityinvestmentorotherreasons,othercomprehensiveincomeoftheoriginalequityinvestmentrecognizedbytheequitymethodshallbesubjecttoaccountingtreatmentthroughadoptingthebasisforthedirectdisposalofrelevantassetsordebtswhentheequitymethodisterminated.Otherchangesinowners'equitywillbetransferredtocurrentprofitandlosswhentheequitymethodisterminated.IftheCompanylosesitscontrolrightsovertheinvestedentityduetothedisposalofpartoftheequityinvestment,whenpreparingindividualfinancialstatement,incaseoftheresidualequitywithjointcontrolorsignificantinfluenceontheinvestedentity,theCompanyshallcalculateandadjusttheresidualequitywithequitymethodasuponobtaining.Othercomprehensiveincomerecognizedbeforetheacquisitionofthecontrolrightoftheinvestedentityshallbecarriedforwardproportionatelyonthesamebasisasthedirectdisposalofrelevantassetsorliabilitiesbytheinvestedentity,andotherchangesinowners'equityrecognizedbytheequitymethodshallbecarriedforwardproportionatelytothecurrentprofitandloss.Iftheresidualequitycannotexercisejointcontrolorexertsignificantinfluenceontheinvestedentity,itshallberecognizedasfinancialassets,thedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolshallbeincludedinthecurrentprofitandloss,andallothercomprehensiveincomeandotherchangesinowner'sequityrecognizedbeforeobtainingthecontrolrightoftheinvestedentityshallbecarriedforward.Ifthedealsfordisposalofthesubsidiary'sequityinvestmentbystepsthroughseveraltimesoftransactionuntilthelossofthecontrolrightbelongtoapackagedeal,thedealsshallbesubjecttoaccountingtreatmentasadealfordisposaloftheequityinvestmentinthesubsidiaryandlossofthecontrolright;thedifferencebetweeneachdisposalpriceandthebookvalueofthelong-termequityinvestmentcorrespondingtotheequitydisposedofbeforethelossofcontrolrightis,inindividualfinancialstatements,recognizedasothercomprehensiveincomeandthentransferredintothecurrentprofitandlossintheperiodoflossofcontrolright.Ifitdoesnotbelongtoapackagedeal,eachdealshallbeaccountedforseparately.
23.Investmentrealestates
MeasurementmodeofinvestmentpropertiesCostmethodDepreciationoramortizationmethodInvestmentrealestatereferstorealestateheldforthepurposeofearningrentand/orcapitalappreciation,includingleasedlanduserights,landuserightsheldandpreparedfortransferafterappreciation,leasedbuildings(includingself-constructedbuildingsandthebuildingsthatareselfbuiltordevelopedforrentaftercompletionofactivities,aswellasthebuildingsthatareunderconstructionordevelopmentforfuturelease).Subsequentexpendituresrelatedtoinvestmentrealestatearerecognizedasinvestmentrealestatecostswhentherelatedeconomicbenefitsarelikelytoflowinandtheircostscanbereliablymeasured;Otherwise,itwillbeincludedinthecurrentprofitandlossatthetimeofoccurrence.TheexistinginvestmentrealestatearemeasuredbyourCompanythroughthecostmethod.Forinvestmentrealestatemeasuredthroughthecostmethod,buildingsforleaseisapplicabletothesamedepreciationpolicyastheCompany'sfixedassets,rightofusetheleasedlandisapplicabletothesameamortizationpolicyasintangibleassets.
24.Fixedassets
(1)RecognitionconditionsFixedassetsrefertothetangibleassetswhichareheldforproductionofgoods,provisionoflabor,leaseoroperatingmanagementandwhoseservicelifeexceedsafiscalyear.Thefixedassetscanberecognizedinthefollowingconditions:
Theeconomicbenefitsrelatedtothefixedassetsarelikelytoflowtotheenterprise;2Thecostofthefixedassetscanbereliablymeasured.Thefixedassetsareinitiallymeasuredaccordingtothecost(andtheinfluenceoftheexpecteddisposalcostfactors).Subsequentexpenditurerelatedtofixedassets,iftheeconomicbenefitsrelatedmayflowinandthecostcanbereliablymeasured,isincludedinthefixedassetcost;andthebookvalueofthereplacedpartisderecognized;allothersubsequentexpendituresarerecordedintocurrentprofitandlosswhenincurred.
(2)Depreciationmethod
| Class | Depreciationmethod | Depreciationlife | Residualrate | Yearlydepreciation |
| Housesandbuilding | Straight-linedepreciation | 10-38years | 5.00%-10.00% | 2.37%-9.50% |
| Machineryequipment | Straight-linedepreciation | 2-15years | 5.00%-10.00% | 6.00%-47.50% |
| Transportationequipment | Straight-linedepreciation | 3-10years | 5.00%-10.00% | 9.00%-31.67% |
| Electronicequipmentandofficeequipment,etc. | Straight-linedepreciation | 2-10years | 5.00%-10.00% | 9.00%-47.50% |
Depreciationoffixedassetsiscalculatedbystraight-linedepreciationmethodandthedepreciationrateisdeterminedaccordingtothecategory,expectedusefullifeandexpectednetresidualrateofthefixedassets.Forfixedassetswithprovisionforimpairment,theamountofdepreciationshallberecognizedinfutureperiodsaccordingtothebookvalueafterdeductingtheprovisionforimpairmentandbasedontheusablelife.IfthecomponentsofthefixedassetshavedifferentusefullifeorprovideeconomicbenefitsfortheCompanyindifferentways,thedepreciationiscalculatedrespectivelybydifferentdepreciationratesordepreciationmethods.
(3)Recognitionbasis,valuationanddepreciationmethodsoffixedassetsunderfinancinglease
25.ConstructioninprogressTheconstructioninprogressismeasuredaccordingtotheactualcost.Actualcostsincludeconstructioncosts,installationcosts,borrowingcostseligibleforcapitalization,andotherexpensesnecessarytobringtheconstructioninprogresstoapredeterminedusablestate.Theconstructioninprogresswillbetransferredintofixedassetsandbegintosubjecttodepreciationfromthefollowingmonthwhenitreachestheintendedserviceablecondition.
26.Borrowingcosts
1)RecognitionprincipleofcapitalizationofborrowingcostsIftheborrowingcostsincurredbytheCompanycanbedirectlyattributedtothepurchase,constructionorproductionoftheassetseligibleforcapitalization,theyshallbecapitalizedandrecordedintothecostoftherelevantassets;otherborrowingcostsshallberecognizedasexpensesaccordingtotheamountincurredatthetimeofoccurrenceandshallberecordedintothecurrentprofitandloss.Assetsmeetingthecapitalizationconditionsrefertothefixedassets,investmentproperties,inventoriesandotherassetswhichcanreachtheintendedusableormarketablestatusonlyafterquitealongtimeofconstructionorproductionactivities.
2)CapitalizationperiodofborrowingcostsCapitalizationperiodreferstotheperiodfromthetimepointatwhichborrowingcostsbegintobecapitalizedtothetimepointatwhichborrowingcostsceasetobecapitalized,excludingtheperiodduringwhichthecapitalizationofborrowingcostsissuspended.
Capitalizationbeginsatthetimewhenborrowingcostsmeetthefollowingconditions:
(1)Assetexpenditureshavebeenincurred,includingexpendituresincurredintheformofcashpayment,transferofnon-cashassetsorundertakinginterest-bearingliabilitiesforthepurchaseandconstructionoforproductionofassetseligibleforcapitalization;
(2)Borrowingcostshavebeenincurred;
(3)Thepurchase,constructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavestarted.Whenthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditionsreachthepredeterminedusableormarketablestate,thecapitalizationofborrowingcostsshallcease.
3)CapitalizationsuspensionperiodIftheassetsthatmeetthecapitalizationconditionsareabnormallyinterruptedintheprocessofpurchaseandconstructionorproduction,andtheinterruptionperiodismorethan3consecutivemonths,thecapitalizationofborrowingcostsshallbesuspended;iftheinterruptionisnecessaryforthepurchase,constructionorproductionoftheassetsthatmeetthecapitalizationconditionstoreachthepredeterminedusablestateormarketablestate,theborrowingcostsshallcontinuetobecapitalized.Theborrowingcostsincurredduringtheinterruptionperiodarerecognizedasthecurrentprofitandloss,untiltheborrowingcostscontinuetobecapitalizedafterthepurchaseandconstructionortheproductionactivitiesoftheassetsarerestarted.
4)CalculationmethodofcapitalizationrateandcapitalizationamountofborrowingcostsForthespecificborrowingforthepurchaseandconstructionorproductionofassetseligibleforcapitalization,thecapitalizationamountofborrowingcostsshallberecognizedbytheborrowingcostsactuallyoccurringinthecurrentperiodofspecificborrowing,minustheamountoftheinterestincomeobtainedbydepositingtheunusedborrowingfundsinthebankortheinvestmentincomeobtainedbymakingtemporaryinvestment.Forthegeneralborrowingoccupiedforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions,theamountofborrowingexpensestobecapitalizedforthegeneralborrowingshallbecalculatedandrecognizedaccordingtotheweightedaverageoftheaccumulatedassetexpenditureexceedingthespecificborrowingmultipliedbythecapitalizationrateofthegeneralborrowingoccupied.Thecapitalizationrateiscalculatedandrecognizedaccordingtotheweightedaverageeffectiveinterestrateofthegeneralborrowing.Duringthecapitalizationperiod,thedifferencebetweentheexchangeoftheprincipalandinterestofthespecificforeigncurrencyborrowingshallbecapitalizedandincludedintothecostoftheassetseligibleforcapitalization.Theexchangedifferencearisingfromtheprincipalandinterestofforeigncurrencyborrowingsotherthanspecificforeigncurrencyborrowingisrecordedintothecurrentprofitandloss.
27.Biologicalassets
Notapplicable.
28.OilandgasassetsNotapplicable.
29.Right-of-useassets
PleaserefertoNote“V.42:Lease”.
30.Intangibleassets
(1)Valuationmethod,servicelifeandimpairmenttest
1)Pricingmethodsofintangibleassets1Theintangibleassetsareinitiallymeasuredaccordingtothecost;Thecostsofpurchasedintangibleassetsincludethepurchaseprice,relatedtaxesaswellasotherexpensesincurredtomaketheassetsreachtheintendedserviceableconditionsandattributabletotheassets.
SubsequentmeasurementTheusefullifeoftheintangibleassetsareanalyzedbytheCompanyatthetimeofobtaining.TheintangibleassetswithlimitedusefullifeshallbeamortizedwithintheperiodwhentheintangibleassetsbringeconomicbenefitstotheCompany;theintangibleassetsthatcannotbeexpectedtobringeconomicbenefitstotheCompanyaredeemedtohaveuncertainlifeandarenotamortized.
2)Estimationofusefullifeofintangibleassetswithlimitedlife
| Item | Expectedservicelife | Basis | |
| Landuseright | 38-50years | Termofusespecifiedintheland-userightcertificate | |
| Softwareuseright | 2-8years | Usefullifeestimatedbythemanagement | |
| Trademarkright | 5-10years | Benefitperiodspecifiedinthecertificateoftrademarkuse | |
| Patentright | 5-10years | Benefitperiodspecifiedinthecertificateofpatentuse | |
| Franchiseduseright | 3 | Termofusestipulatedinthecontract | |
| Clientrelations | 10years | Usefullifeestimatedbythemanagement |
3)BasisforjudgingintangibleassetswithuncertainservicelifeandtheproceduresforreviewingtheirservicelifeDuringthisreportingperiod,thereisnointangibleassetswithuncertainservicelifeintheCompany.
(2)Accountingpolicyofexpenditureforinternalresearchanddevelopment
1)SpecificcriteriafordividingresearchstageanddevelopmentstageTheexpenditureoftheCompany'sinternalR&Dprojectsisclassifiedintotheexpenditureattheresearchstageandtheexpenditureatthedevelopmentstage.Researchstage:thestageoforiginal,plannedinvestigationandresearchactivitiestoacquireandunderstandnewscientificortechnicalknowledge,etc.Developmentstage:thestageinwhichresearchorotherknowledgeisappliedtoaplanordesigntoproduceneworsubstantiallyimprovedmaterials,devices,products,etc.,priortocommercialproductionoruse.
2)SpecificconditionsforthecapitalizationofexpendituresatthedevelopmentstageTheexpenditureattheresearchstageischargedtothecurrentprofitandlossinoccurrence.Theexpenditureatthedevelopmentstagecanberecognizedasintangibleassetsonlywhenmeetingthefollowingconditionsandchargedtothecurrentprofitandlossifnotmeetingthefollowingconditions:
1Itistechnicallyfeasibletocompletetheintangibleassets,sothattheycanbeusedorsold;
Itisintendedtofinishanduseorselltheintangibleassets;3Thewaysofintangibleassetstogenerateeconomicbenefits,includingthosecanprovethattheproductsgeneratedby
theintangibleassetscanbesoldortheintangibleassetsthemselvescanbesoldandprovethattheintangibleassetsto
beusedinternallyareuseful;
Itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupport
ofsufficienttechnologies,financialresourcesandotherresources;and
ThedevelopmentexpendituresoftheintangibleassetscanbereliablymeasuredIftheexpenditureattheresearchstageandtheexpenditureatthedevelopmentstagecannotbedistinguished,theR&Dexpenditureincurredisfullychargedtothecurrentprofitandloss.TheCompanyneedstocomplywiththedisclosurerequirementsofthe“MedicalDeviceBusiness”intheNo.4GuidelineofShenzhenStockExchangeforSelf-regulatoryofListedCompanies-InformationDisclosurebyGrowthEnterprises.
31.Long-termassetsimpairment
Long-termassets,suchaslong-termequityinvestment,fixedassets,constructioninprogress,right-of-useassets,intangibleassetswithlimitedservicelife,andoilandgasassets,whichshowsignsofimpairmentonthebalancesheetdate,shallbesubjecttoimpairmenttests.Iftheimpairmenttestresultsshowthatrecoverableamountoftheassetisbelowitsbookvalue,theprovisionforimpairmentiswithdrawnaccordingtothebalanceandchargedtotheimpairmentloss.Therecoverableamountisdeterminedaccordingtothehigherofthenetamountoftheassetsfairvaluesubtractedbythedisposalcostsandthepresentvalueoftheexpectedfuturecashflowoftheassets.Theprovisionforimpairmentofassetsiscalculatedandrecognizedonthebasisofsingleasset.TheCompanyrecognizestherecoverableamountoftheassetgroupbasedontheassetgrouptowhichtheassetbelongsiftherecoverableamountofthesingleassetisdifficulttoestimate.Anassetgroupisthesmallestgroupofassetsthatcangeneratecashinflowsindependently.Thegoodwillformedduetobusinesscombination,intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheusablestateshallbeatleastsubjecttoanimpairmenttestattheendofeachyear,regardlessofwhetherthereisanysignsofimpairment.TheCompanyconductsthegoodwillimpairmenttests.Forthebookvalueofthegoodwillformedduetobusinesscombination,itshallbeapportionedtorelevantassetgroupbyareasonablemethodfromthedateofpurchase;ifitisdifficulttoapportiontotherelevantassetgroup,itshallbeapportionedtotherelevantassetgroupcombination.Therelevantassetgrouporassetgroupcombinationisanassetgrouporassetgroupcombinationthatcanbenefitfromthesynergiesofbusinesscombination.Atthetimeofconductingimpairmenttestontherelevantassetgrouporassetgroupcombinationcontaininggoodwill,iftherearesignsofimpairmentintheassetgrouporassetgroupcombinationrelatedtogoodwill,conductimpairmenttestontheassetgrouporassetgroupcombinationwithoutgoodwillatfirst,calculatetherecoverableamountandrecognizethecorrespondingimpairmentlosscomparedwiththerelevantbookvalue.Thenconductanimpairmenttestontheassetgrouporassetgroupcombinationcontaininggoodwilltocompareitsbookvaluewiththerecoverableamount.Iftherecoverableamountislessthanthebookvalue,theamountofimpairmentlossshallfirstoffsetthebookvalueofgoodwillamortizedtotheassetgrouporassetgroupcombination,andthenoffsetthebookvalueofotherassetsproportionallyaccordingtotheproportionofthebookvalueofassetsotherthangoodwillintheassetgrouporassetgroupcombination.Theaboveimpairmentlossofassetswillnotbereservedinsubsequentaccountingperiodsoncerecognized.
32.Long-termunamortizedexpensesLong-termunamortizedexpensesrefertotheexpensesthathaveoccurredbutshallbeburdenedincurrentperiodandlaterperiodswiththeapportionmentperiodmorethanoneyear.Amortizationmethod:long-termunamortizedexpensesareamortizedonanaveragebasisoverthebenefitperiod.
33.ContractliabilitiesTheCompanyliststhecontractualassetsorcontractualliabilitiesinthebalancesheetaccordingtotherelationshipbetweenperformanceobligationsandcustomerpayment.TheobligationsoftheCompanytotransfergoodsorprovideservicestocustomersforwhichconsiderationhasbeenreceivedorreceivablearelistedascontractualliabilities.Thecontractualassetsandcontractualliabilitiesunderthesamecontractarelistedinthenetamount.
34.Employeecompensation
(1)Short-termcompensationaccountingmethodTheCompanyshallrecognizetheshort-termcompensationincurredactuallyduringtheaccountingperiodwhentheemployeesprovideservicesfortheCompanyastheliabilitiesandincludesincurrentprofitsandlossesorrelatedassetcosts.ForthesocialinsurancepremiumsandhousingfundspaidbytheCompanyfortheemployeesaswellsasthelaborunionexpenditureandpersonneleducationfundwithdrawnaccordingtotheprovisions,thecorrespondingemployeecompensationamountisrecognizedaccordingtothestipulatedaccruingbasisandaccruingproportionduringtheaccountingperiodwhentheemployeesprovideservicesfortheCompany.TheemployeewelfareexpensesincurredbytheCompanyshallberecordedintothecurrentprofitandlossorrelevantassetcostaccordingtotheactualamountwhenactuallyincurred,andthenon-monetarywelfareshallbemeasuredatitsfairvalue.
(2)Post-employmentbenefitsaccountingmethod
1DefinedcontributionplanTheCompanypaysthebasicendowmentinsuranceandunemploymentinsurancefortheemployeesaccordingtorelevantprovisionsofthelocalgovernment,calculatestheamountpayableaccordingtolocalpaymentbaseandproportionintheaccountingperiodwhentheemployeesprovideservicesfortheCompany,recognizestheamountpayableastheliabilitiesandincludesincurrentprofitsandlossesorrelatedassetcosts.Inaddition,theCompanyhasalsoparticipatedinthecorporationpensionplan/supplementarypensioninsurancefundapprovedbytherelevantdepartmentsofthestate.TheCompanypaysthefeestothepensionplan/localsocialsecurityinstitutionaccordingtoacertainproportionofthetotalemployeewagesandincludescorrespondingexpensesincurrentprofitsandlossesorrelatedassetcosts.
2Definedbenefitplan
TheCompanyattributesthewelfareobligationsgeneratedfromthedefinedbenefitplantotheperiodwhentheemployeesprovideservicesbytheformularecognizedaccordingtotheexpectedcumulativewelfareunitmethodandincludesincurrentprofitsandlossesorrelatedassetcosts.Thedeficitorsurplusformedfromthepresentvalueofthedefinedbenefitplanobligationsubtractedbythefairvalueofthedefinedbenefitplanassetsisrecognizedasanetliabilityornetassetofthedefinedbenefitplan.Incaseofsurplusinthedefinedbenefitplan,theCompanymeasuresthenetassetsofthedefinedbenefitplanaccordingtothelowerofthesurplusandassetupperlimitsofthedefinedbenefitplan.Alldefinedbenefitplanobligations,includingtheobligationsforpaymentwithin12monthsaftertheendoftheexpectedannualreportingperiodinwhichtheemployeesprovideservices,arediscountedaccordingtothenationaldebtsmatchingthedefinedbenefitplanobligatorytermandcurrencyorthemarketreturnofthehigh-qualitycorporationbondsactiveinthemarketonthebalancesheetdate.Theservicecostsgeneratedfromthedefinedbenefitplanandthenetinterestofthenetliabilitiesornetassetsofthedefinedbenefitplanareincludedincurrentprofitsandlossesorrelatedassetcosts;thechangesfromre-measurementofthenetliabilitiesornetassetsofthedefinedbenefitplanareincludedinothercomprehensiveincomeandnotwrittenbacktotheprofitsandlossesinsubsequentaccountingperiod.Upontheterminationoftheoriginaldefinedbenefitplan,thepartoriginallyrecordedintoothercomprehensiveincomewithinthescopeofrightsandinterestsshallbecarriedforwardtoundistributedprofit.Inthesettlementofthedefinedbenefitplan,thesettlementprofitsorlossesarerecognizedaccordingtothebalancebetweenthepresentvalueofthedefinedbenefitplanobligationandthesettlementpricerecognizedonthesettlementdate.
(3)TerminationbenefitsaccountingmethodWheretheCompanyprovidesdismissionwelfareforitsemployees,itshallrecognizetheemployeecompensationliabilitiesarisingfromthedismissionwelfareandincludeitinthecurrentprofitandlossontheearlierdatebelow:whentheCompanyfailstounilaterallywithdrawthedismissionwelfareduetoterminationoflaborrelationplanordownsizingsuggestions;whentheCompanyrecognizesthecostsorexpensesrelatedtorestructuringinvolvingpaymentofdimissionwelfare.
(4)Otherlong-termemployeebenefitsaccountingmethod
35.Leaseliabilities
PleaserefertoNote“V.42:Lease”.
36.EstimatedliabilitiesTheestimatedliabilitiesarerecognizedwhentheobligationrelatedtocontingenciesmeetsthefollowingconditionssimultaneously:
(1)TheobligationisthecurrentobligationundertakenbytheCompany;
(2)Performanceoftheobligationislikelytoleadtotheoutflowofeconomicbenefits;
(3)Theamountoftheobligationcanbereliablymeasured.Theestimatedliabilitiesareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtoperformtherelevantcurrentobligations.Inrecognizingthebestestimate,factorssuchasrisk,uncertaintyandtimevalueofmoneyrelatedtocontingenciesaretakenintoaccount.Ifthetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflows.Ifthereisacontinuousrangeofexpenditurerequiredandtheprobabilityofvariousoutcomeswithinthisrangeisthesame,thebestestimateisrecognizedaccordingtothemiddlevaluewithinthisrange;inothercases,thebestestimatesarehandledasfollows:
●Whenacontingencyinvolvesasingleitem,thebestestimateisrecognizedbythemostpossibleamount.
●Whenacontingencyinvolvesmorethanoneitem,thebestestimateisrecognizedaccordingtoavarietyofpossible
outcomesandrelatedprobabilities.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanestimatedliabilitiesisexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Besides,theamountrecognizedforthereimbursementshallnotexceedthebookvalueoftheestimatedliabilities.TheCompanyreviewsthebookvalueoftheestimatedliabilitiesonthebalancesheetdate,andifthereisconclusiveevidencethatthebookvaluecannotreflectthecurrentbestestimate,itshalladjustthebookvalueaccordingtothecurrentbestestimate.
37.Share-basedpayment
TheCompany'sshare-basedpaymentreferstoatransactioninwhichtheCompanygrantsequityinstrumentsorundertakesequity-instrument-basedliabilitiesinreturnforservicesfromemployeeorotherparties.TheCompany'sshare-basedpaymentsshallconsistofequity-settledshare-basedpaymentsandcash-settledshare-basedpayments.
1)Equity-settledshare-basedpaymentsandequityinstrumentsWheretheequity-settledshare-basedpaymentisexchangedfortheservicesprovidedbytheemployee,itshallbemeasuredatthefairvalueoftheequityinstrumentgrantedtotheemployee.Forshare-basedpaymenttransactionswithexercisablerightsimmediatelyafterthegrant,itshallbeincludedintherelevantcostsorexpensesinaccordancewiththefairvalueoftheequityinstrumentonthegrantdate,andthecapitalreservesshallbeincreasedaccordingly.Fortheshare-basedpaymenttransactionwheretheservicewithinthewaitingperiodiscompletedafterthegrantorspecifiedperformanceconditionsaremet,oneverybalancesheetdateofthewaitingperiod,theCompanyshallincludetheserviceobtainedatthecurrentperiodintorelevantcostsorexpensesaccordingtothefairvalueofthegrantdateonthebasisofthebestestimateofthenumberofequityinstrumentswithexercisablerights,andincreasethecapitalreserveaccordingly.Ifthetermsoftheequity-settledshare-basedpaymentaremodified,theservicesacquiredarerecognizedatleastintermsoftheunmodifiedterms.Inaddition,anymodificationthatincreasesthefairvalueoftheequityinstrumentgranted,orthatisbeneficialtotheemployeeatthedateofmodification,recognizesanincreaseintheacquisitionofservices.Duringthewaitingperiod,ifthegrantedequityinstrumentiscanceled,theCompanywilltreatthecanceledequityinstrumentastheacceleratedexerciseofpower,andimmediatelyincludethebalancethatshallberecognizedintheremainingwaitingperiodintothecurrentprofitandloss,andsimultaneouslyconfirmthecapitalreserve.However,ifanewequityinstrumentisgrantedandthenewequityinstrumentgrantedisdeemedtobeareplacementforthecancelledequityinstrumentonthegrantdate,thegrantedreplacementequityinstrumentwillbehandledinthesamemannerasanyamendmenttothetermsandconditionsoftheoriginalequityinstrument.
2)Cash-settledshare-basedpaymentsandequityinstrumentThecash-settledshare-basedpaymentswillbemeasuredaccordingtothefairvalueoftheliabilityconfirmedbasingonthesharesbornebytheCompanyandotherequityinstruments.Forshare-basedpaymenttransactionswithexercisablerightsimmediatelyafterthegrant,theCompanyshallincludeitintherelevantcostsorexpensesinaccordancewiththefairvalueoftheequityinstrumentonthegrantdate,andtheliabilitiesshallbeincreasedaccordingly.Iftherightscanonlybeexercisedafterthesituationthatservicewithinthewaitingperiodiscompletedandsetperformanceisachieved,theserviceobtainedinthecurrentperiod,accordingtothefairvalueoftheliabilitiesbornebytheCompany,andbasingonthebestestimatefortheconditionofexercisingrights,willberecordedintorelevantcostsorexpensesoneachandeverybalancesheetdateduringthewaitingperiod,andcorrespondinglyrecordedintotheliabilities.Eachandeverybalancesheetdateandsettlementbeforerelevantliabilitysettlement,thefairvalueofliabilitywillberemeasured,ofwhichchangesoccurredwillbecountedintothecurrentperiod.IftheCompanymodifiesthetermsandconditionsofthecash-settledshare-basedpaymentagreementsettledincashtochangeittoequity-settledshare-basedpayment,onthedateofmodification(whetherduringorafterthewaitingperiod),theCompanywillmeasuretheequity-settledshare-basedpaymentaccordingtothecurrentfairvalueofthegrantedequityinstrument,andincludetheservicesacquiredinthecapitalreserve.Atthesametime,itshallterminatetherecognitionofliabilitiesrecognizedonthemodificationdateforthecash-settledshare-basedpayment,withthedifferencerecordedintothecurrentprofitandloss.Ifthewaitingperiodisextendedorshortenedduetothemodification,theCompanywillcarryoutaccountingtreatmentaccordingtothemodifiedwaitingperiod.
38.Preferredshares,perpetualbondsandotherfinancialinstruments
Atthetimeofinitialrecognition,theCompanyclassifiesthefinancialinstrumentoritscomponentsasafinancialasset,financialliabilityorequityinstrumentbasedonthetermsofthecontractandtheeconomicsubstancereflectedintheissuedpreferredstock/perpetualbond,andnotsolelyinlegalform.Incasethatthefinancialinstrumentsuchasperpetualbond/preferredstockissuedbytheCompanymeetoneofthefollowingconditions,itwillbeclassifiedasfinancialliabilitiesatthetimeofinitialrecognitioninwholeorinpart:
(1)TherearecontractualobligationswhichtheCompanycannotunconditionallyavoidfulfillingbydeliveringcashor
otherfinancialassets;
(2)Itcontainscontractualobligationsofdeliveringavariablenumberofitsownequityinstrumentsforsettlement;
(3)Itcontainsderivativeinstrument(suchasequitytransfer,etc.)thatissettledwithitsownequity,andsuchderivativeinstrumentdoesnotexchangeafixednumberofitsownequityinstrumentsforafixedamountofcashorotherfinancialassetsforsettlement;
(4)Therearecontractclausesthatmayindirectlyleadtocontractualobligations;
(5)Whentheissuerliquidates,theperpetualbondsareinthesameorderofliquidationastheordinarybondsandotherdebtsissuedbytheissuer.Incasethatthefinancialinstrumentsuchasperpetualbond/preferredstockissuedbytheCompanydoesnotmeetoneoftheaboveconditions,itwillbeclassifiedasequityinstrumentatthetimeofinitialrecognitioninwholeorinpart.
39.IncomeAccountingpoliciesforincomerecognitionandmeasurementTheCompanyhasfulfilleditscontractualobligationstorecognizeincomewhenthecustomeracquirescontroloftherelevantgoodsorservices.Obtainingcontroloftherelevantgoodsorservicesistheabilitytodominatetheuseofthegoodsorservicesandgainalmostalleconomicbenefitsfromthem.Ifthecontractcontainstwoormoreperformanceobligations,theCompanyshall,onthecommencementdateofthecontract,apportionthetransactionpricetoeachindividualperformanceobligationaccordingtotherelativeproportionoftheindividualsellingpriceofthegoodsorservicescommittedbyeachindividualperformanceobligation.TheCompany'sincomeshallbemeasuredaccordingtothetransactionpriceapportionedtoeachindividualperformanceobligation.ThetransactionpricemeanstheamountofconsiderationthattheCompanyisexpectedtobeentitledtocollectforthetransferofgoodsorservicestothecustomer,excludingpaymentscollectedonbehalfofthirdpartiesandamountsexpectedtobereturnedtothecustomer.TheCompanydeterminesthetransactionpriceinaccordancewiththetermsofthecontractandincombinationwithitspastpractices,andindeterminingthetransactionprice,ittakesintoaccounttheimpactofvariable
consideration,materialfinancingelementsinthecontract,non-cashconsideration,considerationpayabletocustomersandotherfactors.TheCompanydeterminesthetransactionpriceincludingthevariableconsiderationbyanamountnotexceedingtheamountofaccumulatedrecognizedincomewhichishighlyunlikelytobemateriallyreversedwhentherelevantuncertaintyiseliminated.Ifthereisamaterialfinancingcomponentinthecontract,theCompanyshalldeterminethetransactionpricebasedontheamountpayableincashwhenthecustomeracquirescontrolofthegoodsorservices,andshallamortizethedifferencebetweenthetransactionpriceandthecontractconsiderationbytheeffectiveinterestmethodduringthecontractperiod.Ifoneofthefollowingconditionsissatisfied,itshallbedeemedtohaveperformeditsperformanceobligationwithinacertainperiodoftime;otherwise,itshallbedeemedtohaveperformeditsperformanceobligationatacertaintimepoint:
●ThecustomerobtainsandconsumestheeconomicbenefitsarisingfromtheCompany'sperformanceatthesametimeof
theCompany'sperformance.
●ThecustomercancontrolthegoodsunderconstructionduringtheCompany'sperformance.
●ThegoodsproducedbytheCompanyduringtheperformanceareofirreplaceableuse,andtheCompanyshallbe
entitledtoreceivepaymentfortheaccumulatedpartoftheperformancecompletedsofarduringthewholecontractperiod.Fortheperformanceobligationsperformedwithinacertainperiodoftime,theCompanyshallrecognizetheincomeinaccordancewiththeperformanceprogressduringthatperiod,exceptwheretheperformanceprogresscannotbereasonablydetermined.Takingintoaccountthenatureofthegoodsorservices,theCompanywillusetheoutputmethodorinputmethodtodeterminetheperformanceschedule.Iftheperformanceschedulecannotbereasonablydeterminedandthecostalreadyincurredisexpectedtobecompensated,theCompanyshallrecognizetheincomeaccordingtothecostalreadyincurreduntiltheperformanceschedulecanbereasonablydetermined.Forperformanceobligationsperformedatacertaintimepoint,theCompanyrecognizesincomeatthetimepointwhenthecustomeracquirescontroloftherelevantgoodsorservices.Indeterminingwhetherthecustomerhasacquiredcontrolofgoodsorservices,theCompanyconsidersthefollowingindications:
●TheCompanyhasthecurrentcollectionrightforthegoodsorservices,thatis,thecustomerhasthecurrentpaymentobligationforthegoodsorservices.
●TheCompanyhastransferredlegalownershiptothegoodstothecustomer,thatis,thecustomerhaslegalownershipofthegoods.
●TheCompanyhasphysicallytransferredthegoodstothecustomer,thatis,thecustomerhasphysicallypossessedthe
goods.
●TheCompanyhastransferredthemainriskandremunerationintheownershipofthegoodstothecustomer,thatis,the
customerhasacquiredthemainriskandremunerationintheownershipofthegoods.
●Thecustomerhasacceptedthegoodsorservices,etc.Specificprinciplesofrecognitionofincomefromsellinggoods:
(1)Generalforeignsales:recognizetheincomeaftercommodityinspection,customsdeclarationandshipmentofgoods
(theCompany'sexportincomesettlementmainlyadoptsFOBandCIFmethods.Foraverysmallnumberofothersettlementmethods,suchasforthoseadoptingEXWterms,thebuyerdesignatescarrierdoor-to-doordeliveryasthetimepointofrecognitionofproductsalesrevenue;forthoseadoptingFCAterms,thedeliveryofproductstothecarrierdesignatedbythebuyershallbethetimepointofrecognitionofproductsalesrevenue;forthoseadoptingtheDDP/DDUterms,thedeliveryofproductstothedestinationdesignatedbythebuyershallbethetimepointofrecognitionofproductsalesrevenue).
(2)Generaldomesticsales:therecognitiontimeofsalesrevenueisbasedonthecustomer'sconfirmationofreceipt(thatis,
theincomeisrecognizedafterthecustomersignsforthereceipt,butifthecontractstipulatesthatacceptanceisneeded,theincomewillberecognizedafteracceptancebythecustomer).
(3)E-commercebusiness(B2C):therecognitiontimeofsalesrevenueisbasedonthecustomer'sconfirmationofthe
completionofthetransaction(i.e.,theincomeisrecognizedwhenthecustomerinitiativelyconfirmsreceiptofthegoodsonthee-commerceplatformandwhenthee-commerceplatformautomaticallyconfirmsreceiptofthegoodswithinacertainperiodoftimeafterdelivery,whicheverisearlier).
(4)Storesalesmodel:salesrevenueisrecognizedaccordingtosettlementtimeandprice(thatis,theincomeisrecognized
afterthestoresalespersonreceivespaymentanddeliversthegoodstothecustomer).
(5)Consignmentmode:theCompanydeliversthegoodstotheplacedesignatedbytheagent,andrecognizestheincomeafterreceivingthesaleslistandcheckingitaccordingtothetimeofreconciliationagreedinthecontract.DifferencesinincomerecognitionaccountingpoliciescausedbydifferentbusinessmodesforthesamebusinessNA
40.Governmentsubsidies
1)TypeGovernmentsubsidiesrefertothemonetaryassetsornon-monetaryassetsobtainedfreeofchargebytheCompanyfromthegovernment,andareclassifiedintoassetrelatedgovernmentsubsidiesandtheincomerelatedgovernmentsubsidies.GovernmentsubsidiesrelatedtoassetsrefertothegovernmentsubsidiesobtainedbytheCompanyforthepurchaseandconstructionoflong-termassetsortheformationoflong-termassetsbyothermeans.Governmentsubsidiesrelatedtoincomerefertogovernmentsubsidiesinadditiontogovernmentsubsidiesrelatedtoassets.TheCompany'sclassifyinggovernmentsubsidiesasrelatedtoassetsissubjecttothefollowingspecificcriteria:thegovernmentdocumentsclearlystipulatetheuseoffunds,andtheexpectedusedirectionofthefundsisexpectedtoformrelatedassets;TheCompany'sclassifyinggovernmentsubsidiesasrelatedtoincomeissubjecttothefollowingspecificcriteria:thegovernmentdocumentsdonotstipulatetheusepurpose,andtheexpectedusedirectionofthefundsistosupplementworkingcapital;Ifthesubsidyobjectisnotclearlyspecifiedinthegovernmentdocuments,thejudgmentbasisfortheCompanytoclassifythegovernmentsubsidyasrelatedtoassetsorrelatedtoincomeisasfollows:exceptthattheCompanydesignatesitspurposeasrelatedtoassets,itwillbeincludedinthecurrentprofitandloss.
2)RecognitiontimepointGovernmentsubsidieswillberecognizedwhentheconditionsattachedtothemaremetandreceivedbytheCompany.
3)AccountingtreatmentThegovernmentsubsidiesrelatedtoassetswritedownthebookvalueoftherelevantassetsorisrecognizedasdeferredincome.Ifitisrecognizedasdeferredincome,itshallberecordedintothecurrentprofitandlossbystagesinaccordancewithreasonableandsystematicmethodsduringtheservicelifeoftherelevantassets(ifitisrelatedtothedailyactivitiesoftheCompany,itshallberecordedintootherincome;thosenotrelatedtothedailyactivitiesoftheCompanyshallbeincludedinnon-operatingincome);IfthegovernmentsubsidyrelatedtotheincomeisusedtocompensatetheCompany'srelatedcosts,expensesorlossesinthefollowingperiod,itshallberecognizedasdeferredincomeandrecordedintothecurrentprofitandlossduringtheperiodofrecognitionoftherelevantcosts,expensesorlosses(ifitisrelatedtotheCompany'sdailyactivities,itshallberecordedintootherincome;ifitisnotrelatedtothedailyactivitiesoftheCompany,itshallbeincludedinnon-operatingincome)orwritedownrelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesincurredbytheCompanyshallbedirectlyrecordedintothecurrentprofitandloss(ifitisrelatedtothedailyactivitiesoftheCompanyshallberecordedintootherincome;ifitisnotrelatedtothedailyactivitiesoftheCompany,itshallbeincludedinnon-operatingincomeorwritedownrelevantcosts,expensesorlosses.Theinterestsubsidyonpolicy-basedpreferentialloansobtainedbytheCompanyshallbeaccountedforunderthefollowingtwoconditions:
(1)Ifthefinancedepartmentallocatestheinterestsubsidyfundtothelendingbank,andthelendingbankprovidestheloan
totheCompanyatthepolicy-basedpreferentialinterestrate,theCompanyshalltaketheloanamountactuallyreceivedastheentryvalueoftheborrowing,andcalculatetherelevantborrowingcostinaccordancewiththeloanprincipalandthepolicy-basedpreferentialinterestrate.
(2)IfthefinancedepartmentallocatestheinterestsubsidyfunddirectlytotheCompany,theCompanywilloffsetthecorrespondinginterestsubsidyagainsttherelatedborrowingcosts.
41.Deferredincometaxassets/deferredincometaxliabilitiesTheincometaxincludescurrentincometaxanddeferredincometax.Exceptfortheincometaxarisingfromthebusinesscombinationandthetransactionoritemdirectlybookedintotheowners'equity(includingothercomprehensiveincome),theCompanywillrecordthecurrentincometaxanddeferredincometaxintothecurrentprofitandloss.Deferredincometaxassetsanddeferredincometaxliabilitiesshallbecalculatedandrecognizedonthebasisofthedifference(temporarydifference)betweenthetaxbasisoftheassetsandliabilitiesandtheirbookvalue.Forthedeferredincometaxassetsrecognizedthroughdeductibletemporarydifference,itislimitedtotheamountoftaxableincomewhichislikelytobeobtainedtooffsetthedeductibletemporarydifferenceinthefutureperiod.Forthedeductiblelossandtaxdeductionthatcanbecarriedforwardtothesubsequentyear,thecorrespondingdeferredincometaxassetsarerecognizedwithinthelimitofthefuturetaxableincomeamountthatispossiblyobtainedtodeductthedeductiblelossandtaxdeduction.Fortaxabletemporarydifferences,exceptinspecialcircumstances,thedeferredincometaxliabilityisrecognized.Specialcircumstancesinwhichdeferredincometaxassetsordeferredincometaxliabilitiesarenotrecognizedinclude:
●Initialrecognitionofgoodwill;
●Transactionoritemthatisneitherabusinesscombinationnordoesitaffectaccountingprofitandtaxableincome(ordeductibleloss)atthetimeofoccurrence.Forthetaxabletemporarydifferencerelatedtotheinvestmentofthesubsidiaries,associatedenterprisesandjointventures,relevantdeferredincometaxliabilitiesarenotrecognized,unlesstheCompanycancontrolthetemporarydifferencewrite-backtimeandthetemporarydifferencewillprobablynotbewrittenbackintheforeseeablefuture.Forthedeductibletemporarydifferencerelatedtotheinvestmentofthesubsidiaries,jointventuresandcooperativeenterprises,deferredincometaxassetsarerecognizedwhenitislikelytowritebackthetemporarydifferenceintheforeseeablefutureortoobtaintheincometaxpayableusedtooffsetthedeductibletemporarydifferenceinthefuture.Thedeferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredonthebalancesheetdateaccordingtothetaxlawandtheapplicabletaxrateintheperiodofexpectedrecoveryofrelevantassetsofliquidationofrelevantliabilities.Onthebalancesheetdate,theCompanyreviewsthebookvalueofthedeferredincometaxassets.Ifitislikelynottoobtainsufficientincometaxpayabletodeducttheinterestsofthedeferredincometaxassetsinthefuture,thebookvalueofthedeferredincometaxassetsiswrittendown.Ifitislikelytoobtainsufficientincometaxpayable,theamountwrittendowniswrittenback.WhentheCompanyhasthelegalrighttosettlewithnetamountandintendstosettlewithnetamountorobtaintheassetsandliquidatetheliabilitiessimultaneously,theincometaxassetsandincometaxliabilitiesinthecurrentperiodarepresentedbythenetamountafteroffset.Onthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilitiesarelistedinnetamountafteroffsetwhenbothofthefollowingconditionsaremet:
●Thetaxpayerhasthelegalrighttosettlethecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasis;
●Thedeferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesametax
collectionandmanagementdepartmentfromthesamesubjectoftaxpaymentorfromdifferentsubjectsoftaxpaymentbutthesubjectoftaxpaymentinvolvedintendstosettlethecurrentincometaxassetsandliabilitieswiththenetamountorobtaintheassetsandliquidatetheliabilitiessimultaneouslyineachfutureimportantperiodwhenthedeferredincometaxassetsandliabilitiesarewrittenback.
42.Leased
(1)AccountingtreatmentmethodofoperatingleaseLeasereferstoacontractinwhichthelessortransferstherighttousetheassettothelesseewithinacertainperiodoftimetoforconsideration.Onthecommencementdateofthecontract,theCompanyassesseswhetherthecontractisaleaseorcontainsalease.Ifapartytothecontracttransferstherighttocontroltheuseofoneormoreidentifiedassetswithinacertainperiodinexchangeforconsideration,thecontractisaleaseorcontainsalease.Ifacontractcontainsseveralseparateleasesinformation,theCompanywillsplitthecontractandconductaccountingtreatmentforeachoftheseparateleases.Whenacontractcontainsbothleaseandnon-leaseinformation,thelesseeandthelessorshallseparateleaseinformationfromandnon-leaseinformation.
Forrentconcessions,suchasrentreductionanddeferredpayment,directlycausedpublichealtheventsandagreedontheexistingleasecontracts,wherethefollowingconditionsaresatisfied,theCompanyshalladoptasimplifiedmethodforallleaseoptions,andshallnotassessonwhetherthereisaleasechangeorreevaluatetheleaseclassification:
Theleaseconsiderationaftertheconcessionisreducedoressentiallyunchangedcomparedwiththatbeforetheconcession,wheretheleaseconsiderationcannotbediscountedordiscountedatthediscountratebeforeconcession;TheconcessionisonlymadeforleasepaymentspayablebeforeJune30,2022;IftheleasepaymentspayableafterJune30,2022isincreased,itshallnotaffecttheconditionsatisfaction;IftheleasepaymentspayableafterJune30,2022isdecreased,itshallnotsatisfythiscondition;Theothertermsandconditionsoftheleasewerefoundtobeunchangedafterconsideringqualitativeandquantitativefactors.
TheCompanyactsasthelessee:
1)Right-of-useassetsOnthecommencementdateoftheleaseperiod,theCompanyrecognizesright-of-useassetsforleasesotherthanshort-termleasesandleasesoflow-valueassets.Theright-of-useassetsisinitiallymeasuredatcost.Thecostincludes:
Theinitialmeasurementamountoftheleaseliabilities;Ifthereisaleaseincentivefortheleasepaymentpaidonorbeforethestartoftheleaseterm,theamountofthegrantedleaseincentiveshallbededucted;TheinitialdirectexpensesincurredbytheCompany;CostsexpectedtobeincurredbytheCompanytodisassembleandremovealeasedasset,restorethesitewheretheleasedassetislocated,orrestoretheleasedassettotheconditionagreeduponunderthetermsofthelease(excludingcostsincurredtoproduceinventory).TheCompanysubsequentlywithdrawsdepreciationofright-of-useassetswiththestraight-linemethod.Whereitcanbereasonablydeterminedthattheownershipoftheleasedassetscanbeacquiredupontheexpirationoftheleaseterm,depreciationshallbecalculatedandwithdrawnbytheCompanywithintheservicelifeoftheleasedassets;Otherwise,thedepreciationshallbecalculatedandwithdrawnwithinashorterperiodoftheleasetermandtheservicelifeoftheleasedassets.Thecompanydetermineswhethertheright-of-useassethasbeenimpairedinaccordancewiththeprinciplesdescribedinNote“V.31.Long-termassetsimpairment”,andconductsaccountingtreatmentfortheidentifiedimpairmentlosses.
2)LeaseliabilitiesOnthecommencementdateoftheleaseperiod,theCompanyrecognizesleaseliabilitiesforleasesotherthanshort-termleasesandleasesoflow-valueassets.Leaseliabilitiesareinitiallymeasuredatthepresentvalueofoutstandingleasepayments.Leasepaymentsinclude:
Fixedpayments(includingactualfixedpayments),ifthereisleaseincentive,therelevantamountofleaseincentiveshallbededucted;Variableleasepaymentsthatdependonanindexorrate;TheamountestimatedtobepaidbasedontheresidualvalueoftheguaranteeprovidedbytheCompany;Theexercisepriceofthepurchaseoption,providedthattheCompanyreasonablydeterminesthattheoptionwillbeexercised;Theamounttobepaidtoexercisetheoptiontoterminatethelease,providedthattheleasetermreflectsthattheCompanywillexercisetheoptiontoterminatethelease.TheCompanyadoptstheinterestrateimplicitintheleaseasthediscountrate.However,iftheinterestrateimplicitintheleasecannotbereasonablydetermined,theincrementalborrowinginterestrateoftheCompanywillbeadoptedasthediscountrate.TheCompanycalculatestheinterestexpenseoftheleaseliabilityduringeachperiodoftheleasetermatafixedperiodicrate,andincludesitinthecurrentprofitandlossorthecostofrelatedassets.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesshallbeincludedincurrentprofitorlossorthecostoftherelatedassetwhentheyareactuallyincurred.
Afterthecommencementdateoftheleaseterm,incaseofthefollowingcircumstances,theCompanyshallremeasuretheleaseliabilitiesandadjustthecorrespondingright-of-useassets.Ifthebookvalueoftheright-of-useassetshasbeenreducedtozero,buttheleaseliabilitiesstillneedtobefurtherreduced,thedifferenceshallbeincludedinthecurrentprofitandloss:
Incaseofanychangeintheappraisalresultsofthepurchaseoption,leaserenewaloptionorterminationoption,ortheactualexerciseoftheaforementionedoptionsisinconsistentwiththeoriginalappraisalresult,theCompanyshallremeasuretheleaseliabilityaccordingtothepresentvaluewhichiscalculatedbasedonthechangedleasepaymentandthereviseddiscountrate;Incaseofanychangeinsubstantialfixedpayment,theestimatedpayableamountoftheresidualvalueoftheguarantee,ortheindexorratiousedtodeterminetheleasepayment,theCompanyshallremeasuretheleaseliabilityaccordingtothepresentvaluewhichiscalculatedbasedonthechangedleasepaymentandthereviseddiscountrate.However,wherethechangesinleasepaymentresultsfromthechangeinfloatinginterestrate,areviseddiscountratewillbeusedforcalculationofthepresentvalue.
3)Short-termleasesandlow-valueassetleasesTheCompanychoosesnottorecognizeright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassetleases,andincludestherelevantleasepaymentsinthecurrentprofitandlossorrelatedassetcostsonastraight-linebasisovereachperiodoftheleaseterm.Short-termleasesrefertotheleaseswithaleasetermofnotmorethan12monthsandexcludingpurchaseoptionsonthecommencementdateoftheleaseterm.Low-valueassetleasesreferstotheleaseswithalowervaluewhenthesingleleasedassetisanewasset.WheretheCompanysubleasesorexpectstosubleasetheleasedassets,theoriginalleasewillnotbealow-valueassetlease.
4)LeasechangesIncaseofanyleasechangesthatmeetthefollowingconditions,theCompanyshalltreattheleasechangeasaseparateleaseforaccountingtreatment:
Theleasechangeexpandstheleasescopebyaddingtherighttouseoneormoreleasedassets;Theincreasedconsiderationisequivalenttotheamountoftheseparatepriceoftheexpandedpartoftheleaseuponadjustmentbasedonthecontract.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theCompanyshallreallocatetheconsiderationofthecontractafterthechange,redeterminetheleaseterm,andremeasuretheleaseliabilityaccordingtothepresentvaluewhichiscalculatedbasedonthechangedleasepaymentandthereviseddiscountrate.Iftheleasechangeleadstothenarrowingoftheleasescopeortheshorteningoftheleaseterm,theCompanyshallreducethebookvalueoftheright-of-useassetaccordingly,andcredittherelevantgainsorlossesonpartialorcompleteterminationoftheleaseintothecurrentprofitandloss.Ifotherleasechangesresultinre-measurementofleaseliabilities,theCompanyshalladjustthebookvalueoftheright-of-useassetaccordingly.
5)RentconcessionsrelatedtopublichealtheventsIfthesimplifiedmethodofrentconcessionsrelatedtopublichealtheventsisadopted,theCompanywillnotassesswhetherthereisanyleasechange,continuestocalculatetheinterestexpenseoftheleaseliabilityatthesamediscountrateasthatbeforetheconcessionandincludeitinthecurrentprofitandloss,andcontinuestowithdrawthedepreciationoftheright-of-useassetwiththesamemethodasthatbeforetheconcession.Incaseofrentreductionorexemption,theCompanywilltreatthereducedrentasvariableleasepaymentamount.Whentheoriginalrentpaymentobligationisrelievedbyreachingaconcessionagreement,theCompanywilloffsettherelevantassetcostsorexpensesbytheundiscountedamountortheamountdiscountedatthediscountratebeforeconcession,andadjusttheleaseliabilitiesaccordingly;Incaseofdelayedpaymentofrent,theCompanywilloffsettheleaseliabilitiesrecognizedinthepreviousperioduponactualpayment.Forshort-termleasesandlow-valueassetleases,theCompanywillcontinuetocredittheoriginalcontractrentintorelevantassetcostsorexpensesintothesamemannerasthatbeforetheconcession.Incaseofrentreductionorexemption,theCompanywilltreattherentreducedasvariableleasepaymentamountandoffsettherelevantassetcostsorexpensesduringthereductionorexemptionperiod;Incaseofdeferredpaymentofrent,theCompanywillrecognizetherentpayableasaccountpayableintheoriginalpaymentperiod,andoffsettheaccountpayablerecognizedinthepreviousperioduponactualpayment.
2TheCompanyactsasthelessor:
TheCompanyclassifiesleasesasfinanceleasesandoperatingleasesatthecommencementdateoftheleaseterm.Financeleasesreferstotheleaseswherealmostallrisksandrewardsrelatedtotheownershipofleasedassetshavebeensubstantivelytransferredregardlessofwhethertheownershipiseventuallytransferredornot.Operatingleasesrefertoleasesotherthan
financialleases.WhentheCompanyactsasasubleaselessor,subleaseclassificationwillbemadebasedontheright-of-useassetarisingfromtheoriginallease.
1)AccountingforoperatingleaseTheleasereceiptsfromoperatingleasearerecognizedasrentalincomeonastraight-linebasisovereachperiodoftheleaseterm.TheCompanycapitalizestheinitialdirectexpensesincurredinrelationtooperatingleases,whichareamortizedandincludedinthecurrentprofitandlossonthesamebasisastherentalincomeisrecognizedduringtheleaseterm.Thevariableleasepaymentsnotcreditedintoleasereceiptsshallbeincludedintocurrentprofitorlossorwhentheyareactuallyincurred.Incaseofanychangeintheoperatinglease,theCompanyshalltreatitasanewleaseforaccountingtreatmentfromtheeffectivedateofthechange,andtheadvancereceiptsorleasereceivablesrelatedtotheleasebeforethechangeshallbedeemedtobetheamountreceivedforthenewlease.
2)AccountingforfinanceleaseOnthecommencementdateoftheleaseterm,theCompanyrecognizesfinanceleasereceivablesforfinanceleasesandterminatestherecognitionofthefinanceleaseassets.WhentheCompanyinitiallymeasuresthefinanceleasereceivables,thenetleaseinvestmentisregardedastheentryvalueofthefinanceleasereceivables.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceiptsthathavenotbeenreceivedatthecommencementdateofthelease,discountedattheinterestrateimplicitinthelease.TheCompanycalculatesandrecognizestheinterestincomeduringeachperiodoftheleasetermatafixedperiodicrate.ThederecognitionandimpairmentoffinanceleasereceivablesshallbeaccountedforinaccordancewithNote“V.10.Financialinstruments”.Thevariableleasepaymentsthatarenotincludedinthemeasurementofnetleaseinvestmentshallbeincludedincurrentprofitorlossorwhentheyareactuallyincurred.Incaseofanychangesthatmeetthefollowingconditions,theCompanyshalltreatthechangeasaseparateleaseforaccountingtreatment:
Thechangeexpandstheleasescopebyaddingtherighttouseoneormoreleasedassets;Theincreasedconsiderationisequivalenttotheamountoftheseparatepriceoftheexpandedpartoftheleaseuponadjustmentbasedonthecontract.Incasethatthechangeofafinancialleaseisnotaccountedforasaseparatelease,theCompanyshalldealwiththechangedleaseunderthefollowingcircumstances:
Ifthechangetakeseffectonthecommencementdateoftheleaseterm,andtheleaseisclassifiedasanoperatinglease,theCompanywillaccountforitasanewleasefromtheeffectivedateoftheleasechange,andtakethenetleaseinvestmentbeforetheeffectivedateoftheleasechangeasthebookvalueoftheleasedasset;Ifthechangetakeseffectonthecommencementdateoftheleaseterm,andtheleaseisclassifiedasafinanciallease,theCompanywillconductaccountingtreatmentaccordingtothepolicyinNote“V.10.Financialinstruments”regardingthemodificationorrenegotiationofcontracts.
3)RentconcessionsrelatedtopublichealtheventsIfthechangetakeseffectonthecommencementdateoftheleaseterm,andtheleaseisclassifiedasanoperatinglease,theCompanywillaccountforitasanewleasefromtheeffectivedateoftheleasechange,andtakethenetleaseinvestmentbeforetheeffectivedateoftheleasechangeasthebookvalueoftheleasedasset;Ifthechangetakeseffectonthecommencementdateoftheleaseterm,andtheleaseisclassifiedasafinanciallease,theCompanywillconductaccountingtreatmentaccordingtothepolicyinNote“V.10.Financialinstruments”regardingthemodificationorrenegotiationofcontracts.
Sale-and-leasebacktransactionTheCompanyevaluatesanddetermineswhethertheassettransferinthesaleandleasebacktransactionisasaleinaccordancewiththeprinciplesdescribedintheNote“V.39.Revenue”.
1)AsalesseeIfthetransferofanassetinasale-and-leasebacktransactionisasale,theCompany,asthelessee,measurestheright-of-useassetresultingfromthesale-and-leasebackattheportionoftheoriginalasset'sbookvaluethatrelatestotherighttouse
acquiredbytheleaseback,andrecognizesagainorlossrelatedtotherighttransferredtothelessoronly;ifthetransferofanassetinasale-and-leasebacktransactionisnotasale,theCompany,asthelessee,continuestorecognizethetransferredassetandatthesametimerecognizesafinancialliabilityequaltothetransferincome.PleaserefertotheNote“V.10Financialinstruments”fortheaccountingtreatmentoffinancialliabilities.
2)AsalessorIfthetransferofassetsinasale-and-leasebacktransactionisasale,theCompany,asalessor,accountsforthepurchaseoftheassets,andaccountsfortheleaseoftheassetsinaccordancewiththeaforementionedpolicyof“2.TheCompanyasalessor”;ifthetransferofassetsinasale-and-leasebacktransactionisnotasale,theCompany,asalessor,doesnotrecognizethetransferredassets,butrecognizesafinancialassetequaltothetransferincome.PleaserefertotheNote“V.10Financialinstruments”fortheaccountingtreatmentoffinancialassets.
43.Othersignificantaccountingpolicyandaccountingestimate
1)DiscontinuedoperationTerminationofoperationisaseparatecomponentthatmeetsoneofthefollowingconditionsandhasbeendisposedoforclassifiedintotheheldforsalecategorybytheCompany:
(1)Thecomponentrepresentsanindependentprincipalbusinessoranindependentprincipalareaofoperation;
(2)Thecomponentispartofanassociatedplanproposedtodisposeofanindependentprincipalbusinessoranindependentprincipalareaofoperation;
(3)Thecomponentisasubsidiaryacquiredexclusivelyforresale.
2)Hedgeaccounting
(1)Classificationofhedging
1)Afairvaluehedgereferstoahedgeofthefairvaluechangeriskofanassetorliabilitythathasbeenrecognizedandacertaincommitmentthathasnotbeenrecognized(exceptforeignexchangerisk).
2)Acashflowhedgereferstoahedgeoftheriskofchangesincashflowarisingfromaparticulartypeofriskrelatingtoarecognizedassetorliability,ananticipatedtransactionthatislikelytooccur,ortheforeignexchangeriskcontainedinanunrecognizedfirmcommitment
3)Ahedgeofnetinvestmentinoverseasoperationsreferstoahedgeofforeignexchangerisksofnetinvestmentofoverseasoperations.Netinvestmentinoverseasoperationsreferstotheequityshareoftheenterpriseinthenetassetsofoverseasoperations.
(2)DesignationofhedgingrelationshipandidentificationofhedgingeffectivenessAtthebeginningofthehedgingrelationship,theCompanyhasaformaldesignationofthehedgingrelationshipandhaspreparedformalwrittendocumentsonthehedgingrelationship,riskmanagementobjectivesandhedgingstrategies.Thedocumentsspecifythenatureandquantityofthehedginginstrument,thenatureandquantityofthehedgeditems,thenatureofthehedgedrisk,typeofhedging,andtheCompany'sevaluationoftheeffectivenessofthehedginginstrument.Hedgingeffectivenessreferstothedegreetowhichthechangeinthefairvalueorcashflowofthehedginginstrumentcanoffsetthechangeinthefairvalueorcashflowofthehedgeditemcausedbythehedgedrisk.TheCompanycontinuouslyevaluatestheeffectivenessofhedgingandjudgeswhetherthehedgingmeetstherequirementsofhedgingaccountingforeffectivenessduringtheaccountingperiodinwhichthehedgingrelationshipisdesignated.Ifitisnotsatisfied,thehedgingrelationshipshallbeterminated.Theapplicationofhedgeaccountingshallmeetthefollowingrequirementsfortheeffectivenessofhedging:
1)Thereisaneconomicrelationshipbetweenthehedgeditemandthehedginginstrument.
2)Inthevaluechangescausedbytheeconomicrelationshipbetweenthehedgeditemandthehedginginstrument,the
influenceofcreditriskdoesnotplayadominantrole.
3)Adoptingtheappropriatehedgeratiowillnotcausetheimbalancebetweentherelativeweightofthehedgeditemand
thehedginginstrument,thusgeneratingaccountingresultsinconsistentwiththehedgeaccountingobjectives.Ifthehedgeratioisnolongerappropriate,butthehedgingriskmanagementobjectiveshavenotchanged,thenumberof
hedgeditemsorhedginginstrumentsshallbeadjustedtomakethehedgeratiomeettherequirementsofeffectivenessagain.
(3)Hedgeaccountingtreatmentmethods
1)FairvaluehedgingChangesinthefairvalueofhedgederivativeinstrumentsarerecordedinthecurrentprofitandloss.Changesformedbythefairvalueofthehedgeditemduetothehedgingriskshallbeincludedinthecurrentprofitandloss,andthebookvalueofthehedgeditemshallbeadjustedsimultaneously.Forfairvaluehedgingrelatedtofinancialinstrumentsmeasuredatamortizedcost,theadjustmentstothebookvalueofthehedgeditemareamortizedduringtheremainingperiodbetweentheadjustmenttotheduedateandrecordedinthecurrentprofitandloss.Amortizationundertheeffectiveinterestratemethodmaycommenceimmediatelyafterthebookvalueadjustmentandshallnotbelaterthantheadjustmentoffairvaluechangesintheterminationofhedgingrisksbythehedgeditem.Ifthehedgeditemisterminated,theunamortizedfairvalueisrecognizedasthecurrentprofitandloss.Wherethehedgeditemisafirmcommitmentthathasnotbeenrecognized,theaccumulativechangeinthefairvalueofthefirmcommitmentcausedbythehedgingriskisrecognizedasanassetorliability,andtherelevantgainsorlossesarerecordedintothecurrentprofitsandlosses.Changesinthefairvalueofhedginginstrumentsarealsorecordedinthecurrentprofitandloss.
2)CashflowhedgingThepartofthegainorlossofthehedginginstrumentthatbelongstotheeffectivehedgingshallbedirectlyrecognizedasothercomprehensiveincome,whilethepartthatbelongstotheinvalidhedgingshallberecordedintothecurrentprofitandloss.Ifthehedgedtransactionaffectsthecurrentprofitandloss,suchaswhenthehedgedfinancialincomeorfinancialexpenseisrecognizedorwhentheexpectedsaleoccurs,theamountrecognizedinothercomprehensiveincomewillbetransferredtothecurrentprofitandloss.Ifahedgeditemisthecostofanon-financialassetornon-financialliability,theamountoriginallyrecognizedinothercomprehensiveincomeamountistransferredoutandrecordedintotheamountofinitialrecognitionofthenon-financialassetornon-financialliability(ortheamountoriginallyrecognizedinothercomprehensiveincomeistransferredoutduringthesameperiodasthenon-financialassetornon-financialliabilityaffectingtheprofitandloss,andrecordedintothecurrentprofitandloss).Iftheexpectedtransactionorfirmcommitmentisnotexpectedtooccur,theaccumulatedgainsorlossesofthehedginginstrumentpreviouslyrecordedinothercomprehensiveincomearetransferredoutandrecordedinthecurrentprofitandloss.Ifthehedginginstrumenthasexpired,beensold,thecontractterminatedorexercised(butnotreplacedorrenewed),orthedesignationofthehedgingrelationshipiswithdrawn,theamountpreviouslyrecordedinothercomprehensiveincomeisnottransferredoutuntiltheanticipatedtransactionorfirmcommitmentaffectsthecurrentprofitorloss.
3)HedgingofnetinvestmentinoverseasoperationsThehedgingofnetinvestmentinoverseasoperations,includingthehedgingofmonetaryitemsthatarepartofthenetinvestment,shallbetreatedsimilarlytothecashflowhedging.Inthegainorlossofthehedginginstrument,thepartthatisrecognizedaseffectivehedgingisrecordedinothercomprehensiveincome,whilethepartthatisinvalidhedgingisrecognizedascurrentprofitandloss.Whendisposingofoverseasoperations,anyaccumulatedgainsorlossespreviouslyrecordedinothercomprehensiveincomewillbetransferredoutandrecordedintocurrentprofitandloss.
3)SegmentalreportingTheCompanydeterminestheoperatingsegmentsbasedontheinternalorganizationalstructure,managementrequirementsandinternalreportingsystem,anddeterminesthereportingsegmentsbasedontheoperatingsegmentsanddisclosestheinformationofthesegments.OperatingsegmentsrefertothecomponentsoftheCompanythatmeetthefollowingconditionsatthesametime:(1)Thecomponentisabletogeneraterevenueandincurexpensesinitsdailyactivities;(2)ThemanagementoftheCompanycanregularlyevaluatetheoperatingresultsofthecomponenttodeterminetheallocationofresourcestoitandevaluateitsperformance;(3)TheCompanycanobtainrelevantaccountinginformationsuchasthefinancialposition,operatingresultsandcashflowofthecomponent.Iftwoormoreoperatingsegmentshavesimilareconomiccharacteristicsandmeetcertainconditions,theymaybemergedintooneoperatingsegment.
4)RepurchaseoftheCompany'ssharesIftheCompanyrepurchasesitssharesduetothereductionofitsregisteredcapital,itshalldebitthe“TreasuryStock”andcreditthe“BankDeposits”andothersubjectsaccordingtotheamountactuallypaid.Whenthetreasurystockiscanceled,thetotalparvalueofthesharescalculatedaccordingtotheparvalueofthesharesandthenumberofcanceledsharesshallbedebitedtothe“ShareCapital”,andthebookbalanceofthecanceledtreasurystockshallbecreditedtothe“TreasuryStock”.Thepremiumoriginallyrecordedinthecapitalsurplusatthetimeofstockissuanceshallbeoffsetaccordingtothedifference,andthe“CapitalSurplus-capitalstockpremium”shallbedebited.Thepartoftherepurchasepriceexceedingtheaboveoffsetof“ShareCapital”and“CapitalSurplus-capitalstockpremium”shallbedebitedtothe“SurplusReserves”and“ProfitDistribution-undistributedprofits”andothersubjectsinturn.Iftherepurchasepriceislowerthanthesharecapitalcorrespondingtotherepurchasedshares,thedifferencebetweenthebookbalanceofthecanceledtreasurystockandtheoffsetsharecapitalwillbetreatedasanincreaseincapitalstockpremium,anddebittothe“ShareCapital”accordingtotheparvalueofthesharecapitalcorrespondingtotherepurchasedshares,creditthe“TreasuryStock”accordingtothebookbalanceofthecanceledtreasurystock,andcreditthe“CapitalSurplus-capitalstockpremium”accordingtothedifference.
44.Significantaccountingpolicyandaccountingestimatechange
(1)Changesinsignificantaccountingpolicies
√Applicable?Notapplicable
(1)ImplementationoftheInterpretationofAccountingStandardsforBusinessEnterprisesNo.15OnDecember30,2021,theMinistryofFinanceissuedtheInterpretationofAccountingStandardsforBusinessEnterprisesNo.15(CK[2021]No.35,hereinafterreferredtoas“InterpretationNo.15”).1Accountingtreatmentfortrialoperationsales
InterpretationNo.15stipulatestheaccountingtreatmentandpresentationofproductsorby-productsproducedbyenterprisesbeforetheirfixedassetsreachaintendedusablestateorduringtheresearchanddevelopmentprocessforexternalsales,andstipulatesthatthenetincomerelatedtotrialoperationsalesafteroffsettingcostsshallnotbeusedtooffsetthecostoffixedassetsorresearchanddevelopmentexpenses.ThisregulationshallcomeintoeffectfromJanuary1,2022,andretrospectiveadjustmentsshallbemadetotrialoperationsalesfromthebeginningoftheearliestperiodforfinancialstatementpresentationtoJanuary1,2022.TherewasnoeffectforourCompanytoimplementthisregulation.
2Judgmentonlosscontracts
InterpretationNo.15clarifiesthatthe“costofperformingthecontract”consideredbyenterprisesindeterminingwhetherthecontractconstitutesalosscontractshallincludeboththeincrementalcostofperformingthecontractandtheallocationamountofothercostsdirectlyrelatedtotheperformanceofthecontract.ThisregulationshallcomeintoeffectfromJanuary1,2022.EnterprisesshallapplythisregulationforthecontractswithobligationshavenotbeenfulfilledinfullbyJanuary1,2022.Thecumulativeimpactshallbeadjustedtotheretainedearningsandotherrelatedfinancialstatementitemsatthebeginningoftheyearoftheeffectivedate,withoutanyadjustmenttotheearlycomparativefinancialstatementdata.TherewasnoeffectforourCompanytoimplementthisregulation.
(3)ImplementationoftheInterpretationofAccountingStandardsforBusinessEnterprisesNo.16OnNovember30,2021,theMinistryofFinancepublishedtheInterpretationofAccountingStandardsforBusinessEnterprisesNo.16(CK[2022]No.31,hereinafterreferredtoas“InterpretationNo.16”).
AccountingtreatmentfortheincometaximpactofdividendsrelatedtofinancialinstrumentsclassifiedbytheissuerasequityinstrumentsInterpretationNo.16stipulatesthat,forfinancialinstrumentsclassifiedbyenterprisesasequityinstruments,iftherelevantdividendexpendituresaredeductedbeforecorporateincometaxinaccordancewithrelevanttaxpolicies,theincometaximpactrelatedtothedividendsshallberecognizedatthetimeofconfirmingthedividendspayable,andtheincometaximpactofdividendsshallberecordedintocurrentprofitandlossorowners'equityitems(includingothercomprehensiveincomeitems)undertheaccountingtreatmentwhichisconsistentwiththatusedinpasttransactionsoreventsthatgeneratedistributableprofits.Thisregulationshallcomeintoeffectfromthedateofpromulgation,andtherelevantdividendspayableproducedbetweenJanuary1,2022andtheeffectivedateshallbeadjustedinaccordancewiththisregulation;ForthedividendspayableproducedbeforeJanuary1,2022whentherelevantfinancialinstrumentshavenotbeen
derecognized,retrospectiveadjustmentsshallbemade.TheimplementationofsuchprovisionsdidnothaveasignificantimpactontheCompany'sfinancialpositionandoperatingresults.
Accountingtreatmentonthemodificationofcash-settledshare-basedpaymentstoequity-settledshare-basedpaymentsInterpretationNo.16clarifiesthat,iftheCompanymodifiesthetermsandconditionsofthecash-settledshare-basedpaymentagreementsettledincashtochangeittoequity-settledshare-basedpayment,onthedateofmodification(whetherduringorafterthewaitingperiod),theCompanywillmeasuretheequity-settledshare-basedpaymentaccordingtothefairvalueoftheequityinstrumentonthedateofmodification,andincludetheservicesacquiredinthecapitalreserve.Atthesametime,itshallterminatetherecognitionofliabilitiesrecognizedonthemodificationdateforthecash-settledshare-basedpayment,withthedifferencerecordedintothecurrentprofitandloss.Thisregulationshallcomeintoeffectfromthedateofpromulgation,andanynewtransactionsaddedfromJanuary1,2022totheimplementationdateshallbeadjustedinaccordancewiththisregulation;IftherelevanttransactionscarriedoutbeforeJanuary1,2022werenotprocessedinaccordancewiththisregulation,retrospectiveadjustmentsshallbemade,andthecumulativeimpactshallbeadjustedtotheretainedearningsandotherrelatedfinancialstatementitemsonJanuary1,2022,withoutanyadjustmenttotheearlycomparativefinancialstatementdata.TheimplementationofsuchprovisionsdidnothaveasignificantimpactontheCompany'sfinancialpositionandoperatingresults.
(2)Changesinmajoraccountingestimates?Applicable√Notapplicable
45.Others
NA
VI.Taxation
1.Maintaxcategoriesandtaxrates
| Taxcategory | Taxationbasis | Taxrate |
| Addedvaluetax | CalculatethesubstitutedmoneyonVATonthebasisoftheincomefromsellinggoodsandtaxableservicesaccordingtothetaxlaw.AfterdeductionofthewithholdingsonVATallowedtodeductincurrentperiod,thebalanceistheVATpayable | 13%,9%,6%,3%,0% |
| Consumptiontax | N/A | N/A |
| Urbanmaintenanceandconstructiontax | Leviedbyactualpaidvalueaddedtax(includingtheexemptionpart)andconsumptiontax | 7%,5% |
| Corporateincometax | Leviedbyincometaxpayable | 25%,20%,16.5%,15% |
| Educationsurcharge | Leviedbyactualpaidvalueaddedtax(includingtheexemptionpart)andconsumptiontax | 3% |
Note1:SomestoresofShenzhenPurcotton,GuangzhouPurcotton,BeijingPurcotton,ShanghaiPurcottonandCottonLiningaresmall-scaletaxpayers,andVATisleviedattherateof3.00%.TheVATrateofstoresfornon-small-scaletaxpayerswillbe13.00%in2022,and6.00%or3%(small-scaletaxpayers)VATratewillbeappliedtosomestoresprovidingcateringservices.ThebookssoldinShenzhenPurcottonsince2019willbeexemptedfromVATaccordingtoArticle2oftheNoticeontheContinuationofthePreferredPoliciesonValue-addedTaxofCulturalPromotion(C.S.[2018]No.53)ofMinistryofFinanceandStateTaxationAdministration.AccordingtotheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationontheExemptionofVATSmall-scaleVATTaxpayers(AnnouncementNo.15oftheMinistryofFinanceandtheStateAdministrationofTaxationin2022),fromApril1,2022toDecember31,2022,small-scaleVATtaxpayersshallbeexemptfromvalue-addedtaxforthetaxablesalesincomewhichisapplicabletoarateof3%;AndfortheprepaidVATitemswhichisapplicabletoapre-taxrateof3%,prepaymentofvalue-addedtaxshallbesuspended.Note2:TheVATrateof13.00%willbeappliedtothegoodssoldbytheCompanyandothergeneraltaxpayersubsidiariesin2022.TheCompanyandsomeofitssubsidiarieshavetherighttoimportandexport,andtheVATonexportproductsissubjecttotheexporttaxrebatepolicyof“exemption,creditandrefund”.TheVATgeneratedbytheconsultingserviceincomeoftheCompanyisleviedattherateof6.00%,whiletheVATgeneratedbythewarehousingserviceincomeofWinnerMedical(Huanggang)isleviedattherateof6.00%.Iftherearetaxpayerswithdifferententerpriseincometaxrates,thedisclosurestatementshallpresent
| Nameoftaxpayer | Incometaxrate |
| WinnerMedical,WinnerMedical(Huanggang),WinnerMedical(Tianmen),WinnerMedical(Jingmen),WinnerMedical(Chongyang),WinnerMedical(Jiayu),QianhaiPurcotton,WinnerMedical(Wuhan),LongtermMedical,WinnerGuilin,WinnerMedical(Hunan) | 15% |
| WinnerMedical(HongKong) | 16.5% |
| PureHB(Shanghai),HangzhouShengyi,Xi'anLongtemu,DeqingLongterm,RuianMedicalDevice | 20% |
2.Taxpreference
(1)OnDecember23,2021,accordingtotheNoticeonPublicizingtheListofFirstBatchofHigh-techEnterprisestobe
IdentifiedinShenzhenin2021issuedbytheLeadingGroupOfficeofNationalHigh-techEnterpriseAccreditationAdministration,theCompanypassedtheHigh-techEnterpriseQualificationReexamination(CertificateNo.:
GR202144202494).From2021to2023,thecorporateincometaxcanbepaidatapreferentialtaxrateof15.00%.
(2)AccordingtotheNoticeonPublicizingtheListoftheSecondBatchofHigh-techEnterprisestobeIdentifiedinHubeiProvincein2019,WinnerMedical(Huanggang)wasidentifiedasthesecondbatchofhigh-techenterpriseswiththecertificatenumberofGR201942002414,andpassedthequalificationreviewofhigh-techenterprisesin2022.WinnerMedical(Huanggang)iseligibletopaycorporateincometaxatapreferentialrateof15.00%from2022to2024.
(3)QianhaiPurcottonwasestablishedonJuly21,2015,withitsdomicilelocatedinShenzhenQianhaiShenzhen-Hong
KongCooperationZone.AccordingtotheNoticeofEnterpriseIncomeTaxPreferentialPoliciesandPreferentialDirectoryinShenzhenQianhaiShenzhen-HongKongModernServiceIndustryCooperationZoneofHengqinNewFujianPingtanComprehensiveExperimentalArea(C.S.[2014]No.26)issuedbytheMinistryofFinanceandStateTaxationAdministration,QianhaiPurcottonpaysitsenterpriseincometaxatthetaxrateof15.00%.
(4)AccordingtotheNoticeonPublicizingtheListofFourthBatchofHigh-techEnterprisestobeIdentifiedinHubei
Provincein2021issuedbytheLeadingGroupOfficeofNationalHigh-techEnterpriseAccreditationAdministrationonDecember23,2021,WinnerMedical(Jingmen)obtainedtheHigh-techEnterpriseCertificate(CertificateNo.:
GR202142004475)onDecember03,2021.From2021to2023,thecorporateincometaxcanbepaidatapreferentialtaxrateof15.00%.
(5)AccordingtotheNoticeonPublicizingtheListofFifthBatchofHigh-techEnterprisestobeIdentifiedinHubei
Provincein2021issuedbytheLeadingGroupOfficeofNationalHigh-techEnterpriseAccreditationAdministrationonDecember23,2021,WinnerMedical(Jiayu)obtainedtheHigh-techEnterpriseCertificate(CertificateNo.:
GR202142005582)onDecember17,2021.From2021to2023,thecorporateincometaxcanbepaidatapreferentialtaxrateof15.00%.
(6)AccordingtotheNoticeonPublicizingtheListofSecondBatchofHigh-techEnterprisestobeIdentifiedinHubei
Provincein2021issuedonDecember15,2021,WinnerMedical(Chongyang)andWinnerMedical(Tianmen)obtainedtheHigh-techEnterpriseCertificates(CertificateNo.:GR202142000579,GR202142002367)onNovember15,2021.From2021to2023,thecorporateincometaxcanbepaidatapreferentialtaxrateof15.00%.
(7)PureHB(Shanghai)wasestablishedonMarch16,2018asasmallenterprisewithsmallprofits.Thepartwithannual
taxableincomenotexceedingRMB1millionshallbereducedby12.5%andincludedintothetaxableincome,andthecorporateincometaxshallbepaidatthetaxrateof20%;ThepartwithannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3millionshallbereducedby25%andincludedintothetaxableincome,andcorporateincometaxshallbepaidattherateof20%.
(8)AccordingtotheNoticeonPublicizingtheListofSecondBatchofHigh-techEnterprisestobeIdentifiedinHubei
Provincein2022issuedonNovember9,2022,WinnerMedical(Wuhan)obtainedtheHigh-techEnterpriseCertificate(CertificateNo.:GR202242002319)onNovember9,2022.From2022to2024,thecorporateincometaxcanbepaidatapreferentialtaxrateof15.00%.
(9)ZhejiangLongterm,whichwasrecognizedasahigh-techenterpriseonNovember13,2017,obtainedanupdatedhigh-
techenterprisequalificationcertificateonDecember1,2020topaycorporateincometaxatapreferentialtaxrateof15%withavalidityperiodofthreeyearsuntilNovember30,2023.
(10)HangzhouShengyi,Xi'anLongtemu,DeqingLongtermareallsmallenterpriseswithsmallprofits.Thepartwith
annualtaxableincomenotexceedingRMB1millionshallbereducedby12.5%andincludedintothetaxableincome,andthecorporateincometaxshallbepaidatthetaxrateof20%;ThepartwithannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3millionshallbereducedby50%andincludedintothetaxableincome,andcorporateincometaxshallbepaidattherateof20%.
(11)WinnerMedical(Hunan)wasrecognizedasahigh-techenterprisein2010topaycorporateincometaxatapreferential
taxrateof15%.Itobtainedanupdatedhigh-techenterprisequalificationcertificateonDecember2,2019withavalidityperiodofthreeyearsuntilDecember1,2022,passedthehigh-techenterprisecertificationforthethirdtimein2022toobtainacertificatewithnumberofGR202243004478andexpirationdateofDecember12,2025.
(12)HunanRuianMedicalDeviceTechnologyCo.,Ltd.isasmallenterprisewithsmallprofits.Thepartwithannual
taxableincomenotexceedingRMB1millionshallbereducedby12.5%andincludedintothetaxableincome,andthecorporateincometaxshallbepaidatthetaxrateof20%;ThepartwithannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3millionshallbereducedby50%andincludedintothetaxableincome,andcorporateincometaxshallbepaidattherateof20%.Atpresent,theannualtaxableincomeofRuianMedicalDeviceislessthanRMB1million,andtheactualtaxrateis2.5%.
(13)OnOctober23,2020,WinnerGuilinpassedthehigh-techenterprisecertificationtoobtainthehigh-techenterprisecertificatewithnumberofGR202045000476andvalidityperiodofthreeyears.AccordingtotherelevantpreferentialpoliciesofChinaforhigh-techenterprises,qualifiedhigh-techenterprisesshallbesubjecttoacorporateincometaxatapreferentialtaxrateof15%forthreeyearsfromtheyearofrecognition.WinnerGuilincanbeentitletothispreferentialpolicyfrom2020to2022.
3.OthersVII.NotestoItemsinConsolidatedFinancialStatements
1.Cashandcashequivalents
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Cashonhand | 246,825.76 | 65,897.39 |
| Bankdeposit | 4,169,305,311.41 | 4,088,546,364.65 |
| Othermonetarycapital | 357,325,441.73 | 185,326,064.78 |
| Total | 4,526,877,578.90 | 4,273,938,326.82 |
| Where:totalamountdepositedabroad | 15,822,664.52 | 11,841,008.78 |
| Totalamountoffundswithrestrictionsonuseduetomortgage,pledgeorfreeze | 156,055,620.73 | 185,326,064.78 |
Otherdescription:
Wherein,thebreakdownofmonetaryfundsthatarerestrictedinuseduetomortgages,pledgesorfreezes,restrictedinwithdrawalduetocentralizedmanagementoffunds,aswellasthoseplacedoutsideChinawithrestrictionsonrepatriationoffunds,isasfollows:
| Item | ClosingBalance | Closingbalanceofthepreviousyear |
| Depositforbankacceptancebill*1 | 7,428,000.00 | |
| LetterofCreditdeposit*2 | 139,600,000.00 | 27,597,366.13 |
| Performancebond*3 | 2,922,681.16 | 2,162,025.10 |
| Balanceofotherrestrictedmonetaryfunds*4 | 6,104,939.57 | 155,566,673.55 |
| Total | 156,055,620.73 | 185,326,064.78 |
*1DepositforbankacceptancebillreferstothedepositdepositedbyZhejiangLongtermtoapplyforbankacceptancebill.*2LetterofCreditdepositreferstothedepositmadebyWinnerMedical(Tianmen)forinternationalanddomesticLettersofCredit;thedepositsdepositedbyWinnerMedical(Shenzhen)forthedomesticlettersofcredittocoverthepaymenttosubsidiaries;thedepositsdepositedbyShenzhenPurcottonforthedomesticlettersofcredittocoverthepaymenttoWinnerMedical(Huanggang).*3TheperformancebondreferstothebonddepositedbyWinnerMedical(HongKong)forbiddingtransactionswithhospitals;thebonddepositedbyZhejiangLongtermforautomatictransferofelectricitycharges;thebonddepositedbyWinnerGuilinfortransactionswiththeGuangdongProvincialHealthCommissionAffairsCenter.
*4ThebalanceofotherrestrictedmonetaryfundsreferstothereceiptdepositofWinnerMedical(Shenzhen);thebalanceofspecialdepositaccountsforrestrictednon-budgetunitsopenedbyShenzhenPurecottoninaccordancewiththeregulationsofprepaidcardissuanceformulatedbytheMinistryofCommerce,andproductdepositfortheAPPandminiprogram.
2.Tradablefinancialassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Financialassetsmeasuredwithfairvalueandwiththechangesincludedincurrentprofitandloss | 4,378,789,960.23 | 3,130,529,709.10 |
| Including: | ||
| Bankfinancialproducts | 3,027,531,039.77 | 1,778,361,521.42 |
| Forwardforeignexchangecontract | 6,334,756.86 | |
| Trustproducts | 1,351,258,920.46 | 1,345,833,430.82 |
| Including: | ||
| Total | 4,378,789,960.23 | 3,130,529,709.10 |
Otherdescription:
3.Derivativefinancialassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Otherdescription:
4.Notesreceivable
(1)Classifiedpresentationofnotesreceivable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Bankacceptancebill | 51,001,784.57 | |
| Total | 51,001,784.57 |
Unit:yuan
| Class | ClosingBalance | Beginningbalance | ||||||||
| Bookbalance | Provisionforbaddebt | Bookvalue | Bookbalance | Provisionforbaddebt | Bookvalue | |||||
| Amount | Proportion | Amount | Accruingproportion | Amount | Proportion | Amount | Accruingproportion | |||
| Including: | ||||||||||
| Including: | ||||||||||
Ifthebaddebtprovisionofnotesreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
?Applicable√Notapplicable
(2)Provision,recoveryorreversalofbaddebtreservesinthecurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:yuan
| Class | Beginningbalance | Amountofchangeincurrentperiod | Others | ClosingBalance | ||
| Accrual | Recoveredorreversed | Write-off | ||||
Wheretheamountofbaddebtprovisionrecoveredorreversedisimportant:
?Applicable√Notapplicable
(3)NotesreceivablepledgedbytheCompanyattheendoftheperiod
Unit:yuan
| Item | Pledgedamountattheendoftheperiod |
(4)NotesreceivableendorsedordiscountedbytheCompanyattheendoftheperiodandnotexpiredyetonthebalance
sheetdate
Unit:yuan
| Item | Amountwithrecognitionterminatedattheendoftheperiod | Amountwithrecognitionnotterminatedattheendoftheperiod |
| Bankacceptancebill | 95,314,075.78 | 32,671,254.70 |
| Total | 95,314,075.78 | 32,671,254.70 |
(5)NotestransferredtoaccountsreceivablebytheCompanyattheendoftheperiodduetofailureofthedrawertoperform
Unit:yuan
| Item | Amounttransferredtoaccountsreceivableattheendoftheperiod |
Otherdescription:
(6)Notesreceivableactuallywrittenoffatthecurrentperiod
Unit:yuan
| Item | Amountwrittenoff |
Write-offofimportantnotesreceivable:
Unit:yuan
| Unitname | Natureofnotesreceivable | Amountwrittenoff | Reasonsforwrite-off | Write-offproceduresperformed | Whetherthepaymentsarisefromrelatedtransactions |
Descriptionofwrite-offnotesreceivable:
5.Accountsreceivable
(1)Classifieddisclosureofaccountsreceivable
Unit:yuan
| Class | ClosingBalance | Beginningbalance | ||||||||
| Bookbalance | Provisionforbaddebt | Bookvalue | Bookbalance | Provisionforbaddebt | Bookvalue | |||||
| Amount | Proportion | Amount | Accruingproportion | Amount | Proportion | Amount | Accruingproportion | |||
| Accountsreceivableofprovisionforbaddebtbysingleitem | 2,811,067.30 | 0.28% | 2,811,067.30 | 100.00% | ||||||
| Including: | ||||||||||
| Accountsreceivableofprovisionforbaddebtbycombination | 984,485,837.09 | 99.72% | 51,843,776.05 | 5.27% | 932,642,061.04 | 816,650,641.20 | 100.00% | 41,104,051.78 | 5.03% | 775,546,589.42 |
| Including: | ||||||||||
| Aginganalysismethod | 984,485,837.09 | 99.72% | 51,843,776.05 | 5.27% | 932,642,061.04 | |||||
| Total | 987,296,904.39 | 100.00% | 54,654,843.35 | 5.54% | 932,642,061.04 | 816,650,641.20 | 100.00% | 41,104,051.78 | 5.03% | 775,546,589.42 |
Provisionforbaddebtbycombination:aginganalysismethod
Unit:yuan
| ClosingBalance | |||
| Name | Bookbalance | Provisionforbaddebt | Accruingproportion |
| Within1year | 965,701,676.81 | 48,285,084.22 | 5.00% |
| 1~2years | 15,169,852.52 | 1,516,985.25 | 10.00% |
| 2~3years | 1,968,459.71 | 590,537.91 | 30.00% |
| 3~4years | 384,218.53 | 192,109.27 | 50.00% |
| 4~5years | 12,850.60 | 10,280.48 | 80.00% |
| Morethan5years | 1,248,778.92 | 1,248,778.92 | 100.00% |
| Total | 984,485,837.09 | 51,843,776.05 | |
Descriptionofthebasisfordeterminingthecombination:
OnDecember31,2022,theCompanyreviewedtheappropriatenessoftheprovisionforbaddebtsofreceivablesinthepreviousyearaccordingtothehistoricalbaddebtloss,andbelievedthatthedefaultprobabilityhasastrongcorrelationwiththeagingofaccounts,andtheaccountageisstillasignofwhetherthecreditriskoftheCompany'sreceivableshassignificantlyincreased.Therefore,theCompany'screditrisklossonDecember31,2022isestimatedbasedontheagingofaccountsandestimatedattheoriginallossratio.
Ifthebaddebtprovisionofaccountsreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
?Applicable√NotapplicableDisclosurebyaging
Unit:yuan
| Aging | Bookbalance |
| Within1year(including1year) | 966,089,497.52 |
| 1~2years | 15,332,065.15 |
| 2~3years | 1,968,459.71 |
| Morethan3years | 3,906,882.01 |
| 3~4years | 502,727.73 |
| 4~5years | 1,622,782.36 |
| Morethan5years | 1,781,371.92 |
| Total | 987,296,904.39 |
(2)Provision,recoveryorreversalofbaddebtreservesinthecurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:yuan
| Class | Beginningbalance | Amountofchangeincurrentperiod | ClosingBalance | |||
| Accrual | Recoveredorreversed | Write-off | Others | |||
| Provisionforbaddebtofaccountsreceivable | 41,104,051.78 | 17,987,140.64 | 22,933,406.67 | 271,994.30 | 18,769,051.901 | 54,654,843.35 |
| Total | 41,104,051.78 | 17,987,140.64 | 22,933,406.67 | 271,994.30 | 18,769,051.90 | 54,654,843.35 |
Note:1Theitem“Others”mainlyreferstotheincreasebybusinesscombination
Wheretheamountofbaddebtprovisionrecoveredorreversedisimportant:
Unit:yuan
| Unitname | Amountrecoveredorreversed | Recoveryway |
None
(3)Accountsreceivableactuallywrittenoffatthecurrentperiod
Unit:yuan
| Item | Amountwrittenoff |
| Accountsreceivableactuallywrittenoff | 271,994.30 |
Write-offofimportantaccountsreceivable:
Unit:yuan
| Unitname | Natureofaccountsreceivable | Amountwrittenoff | Reasonsforwrite-off | Write-offproceduresperformed | Whetherthepaymentsarisefromrelatedtransactions |
Descriptionofwrite-offaccountsreceivable:
(4)AccountsreceivablewithTop5endingbalancesbydebtor
Unit:yuan
| Unitname | Endingbalanceofaccountsreceivable | Proportionintotalotherendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| First | 104,087,828.63 | 10.54% | 5,204,391.43 |
| Second | 20,789,828.23 | 2.11% | 1,039,491.41 |
| Third | 19,433,438.68 | 1.97% | 971,671.93 |
| Fourth | 16,772,838.16 | 1.70% | 838,641.91 |
| Fifth | 15,428,180.67 | 1.56% | 771,409.03 |
| Total | 176,512,114.37 | 17.88% |
(5)AccountsreceivablederecognizedduetotransferoffinancialassetsNone
(6)AmountofassetsandliabilitiesformedbytransferringaccountsreceivablesandcontinuinginvolvementOtherdescription:
6.Amountsreceivablefinancing
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Notesreceivable-bankacceptancebill | 93,093,113.79 | 9,940,272.21 |
| Total | 93,093,113.79 | 9,940,272.21 |
Changesintheincreaseanddecreaseofreceivablesfinancingandchangesinthefairvalueinthecurrentperiod?Applicable√NotapplicableIftheimpairmentprovisionofreceivablesfinancingiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofimpairmentprovision:
?Applicable√NotapplicableOtherdescription:
7.Advancestosuppliers
(1)Presentationofadvancestosuppliersbyaging
Unit:yuan
| Aging | ClosingBalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 226,208,813.98 | 98.32% | 104,201,209.67 | 94.33% |
| 1~2years | 2,922,303.77 | 1.27% | 6,261,384.71 | 5.67% |
| 2~3years | 948,358.84 | 0.41% | ||
| Less:Provisionforbaddebts | 854,203.50 | |||
| Total | 229,225,273.09 | 110,462,594.38 | ||
Reasonsfornon-timelysettlementofimportantadvancesfromcustomerswiththeagingmorethan1year:
(2)AdvancestosupplierswithTop5endingbalancesbyprepaymentobject
| Advanceobject | ClosingBalance | Proportionintotalendingbalanceofadvances(%) |
| First | 56,862,422.12 | 24.81 |
| Second | 38,000,000.00 | 16.58 |
| Third | 36,979,134.58 | 16.13 |
| Fourth | 12,265,221.29 | 5.35 |
| Fifth | 4,448,055.57 | 1.94 |
| Total | 148,554,833.56 | 64.81 |
Otherdescription:
8.Otherreceivables
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Otherreceivables | 236,298,390.78 | 329,179,077.01 |
| Total | 236,298,390.78 | 329,179,077.01 |
(1)Interestreceivable
1)Classificationofinterestreceivable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
2)Importantoverdueinterest
Unit:yuan
| Borrower | ClosingBalance | Overduetime | Overduereason | Whetherthereisimpairmentanditsjudgmentbasis |
Otherdescription:
3)Provisionforbaddebt?Applicable√Notapplicable
(2)Dividendsreceivable
1)Classificationofdividendsreceivable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
2)Importantdividendsreceivablewiththeagingmorethan1year
Unit:yuan
| Project(orinvestedunit) | ClosingBalance | Aging | Reasonfornon-recovery | Whetherthereisimpairmentanditsjudgmentbasis |
3)Provisionforbaddebt?Applicable√NotapplicableOtherdescription:
(3)Otherreceivables
1)Otherreceivablesclassifiedbynature
Unit:yuan
| Natureofpayment | Endingbookbalance | Beginningbookbalance |
| CompensationforinvestmentandconstructionprojectofHeyuanWinner | 224,655,320.00 | 238,655,320.00 |
| Marginanddeposit | 107,940,240.20 | 112,419,848.22 |
| Exportdrawback | 147,743.12 | 7,309,079.43 |
| Employeeprettycash | 3,851,541.87 | 3,238,544.33 |
| Others | 20,322,649.47 | 15,766,563.91 |
| Total | 356,917,494.66 | 377,389,355.89 |
2)Provisionforbaddebt
Unit:yuan
| Stage1 | Stage2 | Stage3 | ||
| Provisionforbaddebt | Expectedcreditlossesoverthenext12months | Expectedcreditlossesovertheentireduration(withoutcreditimpairment) | Expectedcreditlossesovertheentireduration(withcreditimpairment) | Total |
| BalanceonJanuary1,2022 | 36,469,649.34 | 11,740,629.54 | 48,210,278.88 | |
| BalanceonJanuary1,2022incurrentperiod | ||||
| -CarriedovertoStage3 | (2,457,458.84) | 2,457,458.84 | ||
| Accrualincurrentperiod | 89,523,641.71 | 89,523,641.71 | ||
| Reversalincurrentperiod | 20,634,053.16 | 20,634,053.16 | ||
| Written-offincurrentperiod | 2,457,458.84 | 2,457,458.84 | ||
| Otherchanges | 5,976,695.29 | 5,976,695.29 | ||
| BalanceonDecember31,2022 | 108,878,474.34 | 11,740,629.54 | 120,619,103.88 |
Changesinbookbalancewithsignificantchangesinthecurrentperiodofprovisionforloss?Applicable√NotapplicableDisclosurebyaging
Unit:yuan
| Aging | Bookbalance |
| Within1year(including1year) | 41,891,601.58 |
| 1~2years | 20,875,710.36 |
| 2~3years | 20,538,043.37 |
| Morethan3years | 273,612,139.35 |
| 3~4years | 240,857,729.75 |
| 4~5years | 29,659,408.36 |
| Morethan5years | 3,095,001.24 |
| Total | 356,917,494.66 |
3)Provision,recoveryorreversalofbaddebtreservesinthecurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:yuan
| Class | Beginningbalance | Amountofchangeincurrentperiod | ClosingBalance | |||
| Accrual | Recoveredorreversed | Write-off | Others | |||
| Provisionforbaddebtsofotherreceivables | 48,210,278.88 | 89,523,641.71 | 20,634,053.16 | 2,457,458.84 | 5,976,695.29 | 120,619,103.88 |
| Total | 48,210,278.88 | 89,523,641.71 | 20,634,053.16 | 2,457,458.84 | 5,976,695.29 | 120,619,103.88 |
Theitem“Others”mainlyreferstotheincreasebybusinesscombination.Wheretheamountofbaddebtprovisionreversedorrecoveredisimportant:
Unit:yuan
| Unitname | Amountreversedorrecovered | Recoveryway |
None
4)Otherreceivableactuallywrittenoffatthecurrentperiod
Unit:yuan
| Item | Amountwrittenoff |
| Otherreceivablesactuallywrittenoff | 2,457,458.84 |
Write-offofimportantotherreceivables:
Unit:yuan
| Unitname | Natureofotherreceivables | Amountwrittenoff | Reasonsforwrite-off | Write-offproceduresperformed | Whetherthepaymentsarisefromrelatedtransactions |
Descriptionofwrite-offofotherreceivablesNone
5)OtherreceivableswithTop5endingbalancesbydebtor
Unit:yuan
| Unitname | Natureofpayment | ClosingBalance | Aging | Proportionintotalotherendingbalancereceivable | Endingbalanceofbaddebtprovision |
| First | Intercoursefundswiththethirdparties | 224,655,320.00 | 3-4years | 62.94% | 112,327,660.00 |
| Second | Marginanddeposit | 5,503,130.73 | Within1year:RMB2,756,798.00;1-2years:RMB2,746,332.73 | 1.54% | 275,156.54 |
| Third | Marginanddeposit | 5,000,000.00 | Within1year | 1.40% | 250,000.00 |
| Fourth | Others | 2,842,949.18 | Within1year | 0.80% | 142,147.46 |
| Fifth | Marginanddeposit | 2,311,115.80 | Within1year | 0.65% | 115,555.79 |
| Total | 240,312,515.71 | 67.33% | 113,110,519.79 |
6)Accountsreceivableinvolvinggovernmentsubsidies
Unit:yuan
| Unitname | Nameofgovernmentsubsidyproject | ClosingBalance | Endingaging | Estimatedcollectiontime,amountandbasis |
None
7)OtherreceivablesderecognizedduetotransferoffinancialassetsNA
8)AmountofassetsandliabilitiesformedbytransferringotherreceivablesandcontinuinginvolvementNAOtherdescription:
9.Inventory
WhethertheCompanyneedtofollowthedisclosurerequirementsofrealestateindustry
(1)Inventoryclassification
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Inventoryfallingpricereservesorprovisionforimpairmentofcontractperformancecosts | Bookvalue | Bookbalance | Inventoryfallingpricereservesorprovisionforimpairmentofcontractperformancecosts | Bookvalue | |
| Rawmaterials | 442,673,944.78 | 54,831,465.50 | 387,842,479.28 | 250,762,666.63 | 5,117,956.28 | 245,644,710.35 |
| Workinprocess | 172,727,862.49 | 9,184,849.77 | 163,543,012.72 | 172,991,958.16 | 4,599,718.11 | 168,392,240.05 |
| Merchandiseinventory | 1,188,954,668.09 | 258,680,380.74 | 930,274,287.35 | 1,256,964,242.78 | 100,692,345.17 | 1,156,271,897.61 |
| Semi-finishedproductsshippedintransit | 61,520,340.90 | 130,228.78 | 61,390,112.12 | 16,843,633.88 | 16,843,633.88 | |
| Lowpricedandeasilywornarticles | 17,465,670.25 | 1,591,988.35 | 15,873,681.90 | 10,226,415.09 | 1,852.99 | 10,224,562.10 |
| Total | 1,883,342,486.51 | 324,418,913.14 | 1,558,923,573.37 | 1,707,788,916.54 | 110,411,872.55 | 1,597,377,043.99 |
(2)Inventoryfallingpricereservesandprovisionforimpairmentofcontractperformancecosts
Unit:yuan
| Item | Beginningbalance | Amountincreasedincurrentperiod | Amountdecreasedincurrentperiod | ClosingBalance | ||
| Accrual | Others | Reversalorwrite-back | Others | |||
| Rawmaterials | 5,117,956.28 | 56,175,356.31 | 6,383,009.45 | 12,844,856.54 | 0.00 | 54,831,465.50 |
| Workinprocess | 4,599,718.11 | 14,094,137.36 | 299,165.66 | 9,808,171.36 | 0.00 | 9,184,849.77 |
| Merchandiseinventory | 100,692,345.17 | 284,993,058.41 | 9,585,323.75 | 136,478,084.23 | 112,262.36 | 258,680,380.74 |
| Semi-finishedproductsshippedintransit | 3,451,151.74 | 3,320,922.96 | 0.00 | 130,228.78 | ||
| Lowpricedandeasilywornarticles | 1,852.99 | 1,519,534.71 | 161,351.99 | 90,751.34 | 0.00 | 1,591,988.35 |
| Total | 110,411,872.55 | 356,782,086.79 | 19,880,002.59 | 162,542,786.43 | 112,262.36 | 324,418,913.14 |
Note:Amountincreasedincurrentperiod-Theitem“Others”referstotheincreasebybusinesscombination.
(3)DescriptionofendingbalanceofinventorycontainingthecapitalizedamountofborrowingcostsNA
(4)DescriptionofcurrentamortizationamountofcontractperformancecostNA
10.Contractassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
Amountandreasonofsignificantchangeinthebookvalueofcontractassetsincurrentperiod:
Unit:yuan
| Item | Amountofchange | Reasonforchange |
Ifthebaddebtprovisionofcontractassetsisaccruedaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
?Applicable√NotapplicableProvisionforimpairmentofcontractassetsincurrentperiod:
Unit:yuan
| Item | Accrualincurrentperiod | Reversalincurrentperiod | Writeoff/verificationincurrentperiod | Reasons |
Otherdescription:
11.Assetsheldforsales
Unit:yuan
| Item | Endingbookbalance | Provisionforimpairment | Endingbookvalue | Fairvalue | Estimateddisposalcost | Estimateddisposaltime |
Otherdescription:
12.Non-currentassetsduewithinayear
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Importantdebtinvestments/otherdebtinvestments
Unit:yuan
| Debtitem | ClosingBalance | Beginningbalance | ||||||
| Bookvalue | Couponrate | Actualrate | Maturitydate | Bookvalue | Couponrate | Actualrate | Maturitydate | |
Otherdescription:
13.Othercurrentassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Returncostreceivable | 1,181,368.44 | 733,984.30 |
| Interestonfixeddeposit/largedeposit | 101,670,459.07 | 50,158,601.37 |
| VATinputtaxtobededucted/uncertifiedinputtax | 5,863,706.62 | 43,055,676.36 |
| Prepaidcorporateincometax | 4,773,735.12 | 17,873,716.95 |
| Unamortizedexpenses | 4,853,649.47 | 5,174,471.98 |
| Others | 716,165.75 | 1,763,374.60 |
| Total | 119,059,084.47 | 118,759,825.56 |
Otherdescription:
14.Debtinvestment
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
Importantdebtinvestments
Unit:yuan
| Debtitem | ClosingBalance | Beginningbalance | ||||||
| Bookvalue | Couponrate | Actualrate | Maturitydate | Bookvalue | Couponrate | Actualrate | Maturitydate | |
Provisionforimpairment
Unit:yuan
| Provisionforbaddebt | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesovertheentireduration(withoutcreditimpairment) | Expectedcreditlossesovertheentireduration(withcreditimpairment) | ||
| BalanceonJanuary1,2022incurrentperiod |
Changesinbookbalancewithsignificantchangesinthecurrentperiodofprovisionforloss?Applicable√NotapplicableOtherdescription:
15.Otherdebtinvestments
Unit:yuan
| Item | Beginningbalance | Accruedinterest | Fairvaluechangeincurrentperiod | ClosingBalance | Cost | Accumulatedfairvaluechange | Accumulatedprovisionforlossrecognizedinothercomprehensiveincome | Remark |
Importantotherdebtinvestments
Unit:yuan
| Otherdebtitem | ClosingBalance | Beginningbalance | ||||||
| Bookvalue | Couponrate | Actualrate | Maturitydate | Bookvalue | Couponrate | Actualrate | Maturitydate | |
Provisionforimpairment
Unit:yuan
| Provisionforbaddebt | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesovertheentireduration(withoutcreditimpairment) | Expectedcreditlossesovertheentireduration(withcreditimpairment) | ||
| BalanceonJanuary1,2022incurrentperiod |
Changesinbookbalancewithsignificantchangesinthecurrentperiodofprovisionforloss?Applicable√NotapplicableOtherdescription:
16.Long-termreceivables
(1)Long-termreceivables
Unit:yuan
| Item | ClosingBalance | Beginningbalance | Discountraterange | ||||
| Bookbalance | Provisionforbaddebt | Bookvalue | Bookbalance | Provisionforbaddebt | Bookvalue | ||
Impairmentofprovisionforbaddebt
Unit:yuan
| Provisionforbaddebt | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesoverthenext12months | Expectedcreditlossesovertheentireduration(withoutcreditimpairment) | Expectedcreditlossesovertheentireduration(withcreditimpairment) | ||
| BalanceonJanuary1,2022incurrentperiod |
Changesinbookbalancewithsignificantchangesinthecurrentperiodofprovisionforloss
?Applicable√Notapplicable
(2)Long-termreceivablesderecognizedduetotransferoffinancialassets
(3)Amountofassetsandliabilitiesformedbytransferringlong-termreceivablesandcontinuinginvolvementOtherdescription:
17.Long-termequityinvestment
Unit:yuan
| Investedunit | Beginningbalance(bookvalue) | Increaseordecreaseincurrentperiod | Endingbalance(bookvalue) | Endingbalanceofimpairmentprovision | ||||||
| Furtherinvestment | Capitalreduction | Investmentgainsandlossesrecognizedbytheequitymethod | AdjustmentofothercomprehensiveincomeChangesinotherequity | Declaredpaymentofcashdividendsorprofits | Provisionforimpairment | Others | ||||
| I.Cooperativeenterprise | ||||||||||
| II.Jointventure | ||||||||||
| ChengduWinner | 16,949,801.24 | 4,692,894.92 | 21,642,696.16 | |||||||
| HubeiXianchuangTechnologyCo.,Ltd. | 100,000.00 | 4,939.83 | 104,939.83 | |||||||
| Subtotal | 16,949,801.24 | 100,000.00 | 4,697,834.75 | 21,747,635.99 | ||||||
| Total | 16,949,801.24 | 100,000.00 | 4,697,834.75 | 21,747,635.99 | ||||||
Otherdescription:
18.Otherequityinstrumentinvestments
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Itemizeddisclosureofthecurrentnon-tradingequityinstrumentinvestment
Unit:yuan
| Projectname | Recognizeddividendincome | Accumulatedgains | Accumulatedlosses | Amountofothercomprehensiveincometransferredintoretainedincome | Reasonsfordesignatingtobemeasuredatfairvalueanditschangesarerecordedintoothercomprehensiveincome | Reasonsforothercomprehensiveincometransferringintoretainedincome |
Otherdescription:
19.Othernon-currentfinancialassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Equityinstrumentinvestments | 40,000,000.00 | |
| Total | 40,000,000.00 |
Otherdescription:
20.Investmentrealestates
(1)Investmentrealestatesusingcostmeasurementmode
√Applicable?Notapplicable
Unit:yuan
| Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
| I.Originalbookvalue | ||||
| 1.Beginningbalance | ||||
| 2.Amountincreasedincurrentperiod | 10,739,083.13 | 10,739,083.13 | ||
| (1)Outsourcing | ||||
| (2)Transferfrominventory/fixedassets/constructioninprogress | ||||
| (3)Increasebybusinesscombination | 10,739,083.13 | 10,739,083.13 | ||
| 3.Amountdecreasedincurrentperiod | ||||
| (1)Disposal | ||||
| (2)Otherroll-out | ||||
| 4.ClosingBalance | 10,739,083.13 | 10,739,083.13 | ||
| II.Accumulateddepreciationandaccumulatedamortization | ||||
| 1.Beginningbalance | ||||
| 2.Amountincreasedincurrentperiod | 1,992,068.88 | 1,992,068.88 | ||
| (1)Provisionoramortization | 454,955.36 | 454,955.36 | ||
| (2)Increasebybusinesscombination | 1,537,113.52 | 1,537,113.52 | ||
| 3.Amountdecreasedincurrentperiod | ||||
| (1)Disposal | ||||
| (2)Otherroll-out | ||||
| 4.ClosingBalance | 1,992,068.88 | 1,992,068.88 | ||
| III.Provisionforimpairment | ||||
| 1.Beginningbalance | ||||
| 2.Amountincreasedincurrentperiod | ||||
| (1)Accrual | ||||
| 3.Amountdecreasedincurrentperiod | ||||
| (1)Disposal | ||||
| (2)Otherroll-out | ||||
| 4.Endingbalance | ||||
| IV.Bookvalue | ||||
| 1.Endingbookvalue | 8,747,014.25 | 8,747,014.25 | ||
| 2.Beginningbookvalue |
(2)Investmentrealestatesusingfairvaluemeasurementmode?Applicable√Notapplicable
(3)Investmentrealestateswithoutcertificateoftitle
Unit:yuan
| Item | Bookvalue | Reasonsfornotobtainingthecertificateoftitle |
Otherdescription:None
21.Fixedassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Fixedassets | 2,312,982,598.88 | 1,477,320,848.63 |
| Total | 2,312,982,598.88 | 1,477,320,848.63 |
(1)Fixedassets
Unit:yuan
| Item | Housesandbuilding | Machineryequipment | Transportationequipment | Electronicequipmentandofficeequipment,etc. | Total |
| I.Originalbookvalue: | |||||
| 1.Beginningbalance | 995,105,302.17 | 1,150,719,865.14 | 24,268,054.46 | 125,370,729.10 | 2,295,463,950.87 |
| 2.Amountincreasedincurrentperiod | 562,202,373.32 | 668,211,514.54 | 9,861,269.42 | 59,051,172.08 | 1,299,326,329.36 |
| (1)Purchase | 34,791,834.52 | 213,260,569.46 | 1,454,578.81 | 23,742,591.32 | 273,249,574.11 |
| (2)Transferfromconstructioninprogress | 88,411,404.25 | 145,682,236.43 | 2,952,587.45 | 237,046,228.13 | |
| (3)Increasebybusinesscombination | 438,999,134.55 | 309,268,708.65 | 8,406,690.61 | 32,355,993.31 | 789,030,527.12 |
| 3.Amountdecreasedincurrentperiod | 17,551,145.04 | 80,097,693.01 | 2,086,370.07 | 11,324,598.12 | 111,059,806.24 |
| (1)Disposalorscrap | 17,551,145.04 | 80,097,693.01 | 2,086,370.07 | 11,324,598.12 | 111,059,806.24 |
| 4.ClosingBalance | 1,539,756,530.45 | 1,738,833,686.67 | 32,042,953.81 | 173,097,303.06 | 3,483,730,473.99 |
| II.Accumulateddepreciation | |||||
| 1.Beginningbalance | 236,817,072.10 | 404,994,040.98 | 12,158,907.47 | 56,370,318.49 | 710,340,339.04 |
| 2.Amountincreasedincurrentperiod | 111,929,996.31 | 239,090,204.44 | 8,474,094.52 | 36,984,666.08 | 396,478,961.35 |
| (1)Accrual | 59,795,070.89 | 119,759,476.95 | 4,223,942.76 | 27,041,816.34 | 210,820,306.94 |
(continued)
| Item | Housesandbuilding | Machineryequipment | Transportationequipment | Electronicequipmentandofficeequipment,etc. | Total |
| (2)Increasebybusinesscombination | 52,134,925.42 | 119,330,727.49 | 4,250,151.76 | 9,942,849.74 | 185,658,654.41 |
| 3.Amountdecreasedincurrentperiod | 6,152,141.48 | 46,097,351.50 | 1,963,844.18 | 5,646,794.18 | 59,860,131.34 |
| (1)Disposalorscrap | 6,152,141.48 | 46,097,351.50 | 1,963,844.18 | 5,646,794.18 | 59,860,131.34 |
| 4.ClosingBalance | 342,594,926.93 | 597,986,893.92 | 18,669,157.81 | 87,708,190.39 | 1,046,959,169.05 |
| III.Provisionforimpairment | |||||
| 1.Beginningbalance | 45,682,191.02 | 61,985,265.65 | 135,306.53 | 107,802,763.20 | |
| 2.Amountincreasedincurrentperiod | 114,283.74 | 18,058,389.60 | 25,258.85 | 1,268,634.57 | 19,466,566.76 |
| (1)Accrual | 114,283.74 | 17,934,935.93 | 25,258.85 | 1,268,634.57 | 19,343,113.09 |
| (2)Increasebybusinesscombination | 123,453.67 | 123,453.67 | |||
| 3.Amountdecreasedincurrentperiod | 2,519,312.78 | 961,311.12 | 3,480,623.90 | ||
| (1)Disposalorscrap | 2,519,312.78 | 961,311.12 | 3,480,623.90 | ||
| 4.ClosingBalance | 43,277,161.98 | 79,082,344.13 | 25,258.85 | 1,403,941.10 | 123,788,706.06 |
| IV.Bookvalue | |||||
| 1.Endingbookvalue | 1,153,884,441.54 | 1,061,764,448.62 | 13,348,537.15 | 83,985,171.57 | 2,312,982,598.88 |
| 2.Beginningbookvalue | 712,606,039.05 | 683,740,558.51 | 12,109,146.99 | 68,865,104.08 | 1,477,320,848.63 |
(2)Fixedassetsthataretemporarilyidle
Unit:yuan
| Item | Originalbookvalue | Accumulateddepreciation | Provisionforimpairment | Bookvalue | Remark |
| Housesandbuilding | 36,623.93 | 20,875.64 | 15,748.29 | Notneededfornow | |
| Machineryequipment | 19,344,692.84 | 6,728,533.02 | 1,577,941.09 | 11,038,218.73 | Notneededfornow |
| Electronicequipmentandofficeequipment,etc. | 744,047.66 | 491,113.97 | 215,296.39 | 37,637.30 | Notneededfornow |
| Total | 20,125,364.43 | 7,240,522.63 | 1,793,237.48 | 11,091,604.32 |
(3)Fixedassetsleasedoutbyoperatinglease
Unit:yuan
| Item | Endingbookvalue |
(4)Fixedassetswithoutcertificateoftitle
Unit:yuan
| Item | Bookvalue | Reasonsfornotobtainingthecertificateoftitle |
| WinnerMedical(Tianmen)-Intelligent3De-commercewarehouseforpurecottonbusiness | 47,683,114.19 | Theformalitieshavenotyetbeencompleted |
| WinnerMedical(Tianmen)No.2Workshopforfinishedproducts | 12,875,182.55 | Theformalitieshavenotyetbeencompleted |
Otherdescription:
(5)Liquidationoffixedassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
22.Constructioninprogress
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Constructioninprogress | 765,009,910.63 | 216,096,622.30 |
| Total | 765,009,910.63 | 216,096,622.30 |
(1)Constructioninprogress
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| WinnerMedical(Wuhan)engineeringproject | 375,173,643.40 | 375,173,643.40 | 75,214,244.85 | 75,214,244.85 | ||
| WinnerMedical(Jiayu)engineeringproject | 165,245,291.40 | 165,245,291.40 | 4,821,946.07 | 4,821,946.07 | ||
| WinnerMedical(Huanggang)engineeringproject | 83,828,495.28 | 83,828,495.28 | 264,970.51 | 264,970.51 | ||
| Jingmeninfrastructureproject | 36,276,311.67 | 36,276,311.67 | ||||
| WinnerMedical(Shenzhen)engineeringproject | 12,844,241.04 | 12,844,241.04 | ||||
| WinnerGuilinengineeringproject | 1,877,054.35 | 1,877,054.35 | ||||
| Tianmeninfrastructureproject | 397,954.71 | 397,954.71 | 28,206,760.19 | 28,206,760.19 | ||
| Otherequipmenttobeinstalledandsporadicprojects | 100,232,398.78 | 10,865,480.00 | 89,366,918.78 | 109,049,108.52 | 1,460,407.84 | 107,588,700.68 |
| Total | 775,875,390.63 | 10,865,480.00 | 765,009,910.63 | 217,557,030.14 | 1,460,407.84 | 216,096,622.30 |
(2)Currentchangesinmajorprojectsunderconstruction
Unit:yuan
| Projectname | Budgetnumber | Beginningbalance | Amountincreasedincurrentperiod | Amountcarriedforwardtofixedassetsincurrentperiod | Otherdecreasesincurrentperiod | Endingbalance | Proportionoftotalprojectinputtothebudget | Progressofworks | Accumulatedamountofinterestcapitalization | Including:interestcapitalizationfundsinthecurrentperiod | Interestcapitalizationrateinthecurrentperiod | Sourceoffunds |
| IntegratedWorkshopProjectofWinnerMedical(Huanggang) | 85,000,000.00 | 83,828,495.28 | 83,828,495.28 | 98.62% | 80.00% | Others | ||||||
| FullServoStraightPackSanitaryNapkinProductionEquipment(Line4,Line5)ofWinnerMedical(Huanggang) | 45,000,000.00 | 41,378,064.05 | 41,378,064.05 | 91.95% | 80.00% | Others | ||||||
| WinnerIndustrialPark(Jiayu)ProjectConstructionEngineeringofWorkshop1-4 | 272,380,000.00 | 141,859,864.32 | 141,859,864.32 | 52.08% | 57.00% | Others | ||||||
| ComprehensiveWorkshopEngineeringofWinnerMedical(Jingmen) | 73,000,000.00 | 36,276,311.67 | 36,276,311.67 | 49.69% | 70.00% | Others | ||||||
| PileFoundationWorksforPhaseII1-3SortingCenterofWinnerMedical(Wuhan) | 268,000,000.00 | 10,000,000.00 | 174,403,669.79 | 184,403,669.79 | 68.81% | 80.00% | Others | |||||
| WinnerMedical(Wuhan)PhaseIIMainProject | 110,871,722.11 | 49,892,274.96 | 41,653,183.68 | 91,545,458.64 | 82.57% | 90.00% | Others | |||||
| AutomatedStorageEngineeringinPhaseIIPlantofWinnerMedical(Wuhan) | 96,000,000.00 | 21,238,938.05 | 21,238,938.05 | 22.12% | 10.00% | Others | ||||||
| R&DCenterProjectofWinnerMedical(Wuhan) | 35,666,270.00 | 19,632,809.17 | 19,632,809.17 | 55.05% | 70.00% | Others | ||||||
| ShiftBuildingandCanteenExpansionProjectofWinnerMedical(Wuhan) | 33,213,730.00 | 19,928,238.00 | 19,928,238.00 | 60.00% | 75.00% | Others | ||||||
| HighYieldCardingMachineandCottonCleaningWorkshopEquipmentofWinnerMedical(Wuhan) | 16,000,000.00 | 15,044,247.76 | 15,044,247.76 | 100.00% | Others | |||||||
| SpunlacedThree-lineNon-wovenFabricCardingMachineandSpun-lacedMachineofWinnerMedical(Wuhan) | 37,000,000.00 | 36,849,434.96 | 36,849,434.96 | 100.00% | Others | |||||||
| MedicalIndustryBuildingofWinnerMedical(Shenzhen) | 261,723,960.00 | 2,741,232.41 | 2,741,232.41 | 1.05% | 2.00% | Others | ||||||
| ChengduWenjiangPlantDecorationProjectofWinnerMedical(Shenzhen) | 22,446,099.00 | 10,103,008.63 | 10,103,008.63 | 45.01% | 50.00% | Others | ||||||
| PlantConstructionProjectforMedicalGloveProductionLineExpansionand | 180,450,000.00 | 1,877,054.35 | 1,877,054.35 | 1.04% | 2.27% | Others |
| TransformationofWinnerGuilin | ||||||||||
| InfrastructureProjectforAutomatedWarehouseProjectofWinnerMedical(Tianmen) | 48,000,000.00 | 26,422,018.34 | 243,683.49 | 26,665,701.83 | 100.00% | Others | ||||
| EquipmentandInstallationEngineeringforAutomatedWarehouseProjectofWinnerMedical(Tianmen) | 22,950,000.00 | 6,092,920.35 | 9,139,380.53 | 15,232,300.88 | 100.00% | |||||
| SpunlacePhaseIIIFinishedProductWorkshopProjectofWinnerMedical(Tianmen) | 7,600,000.00 | 4,880,733.94 | 1,045,871.56 | 5,926,605.50 | 100.00% | Others | ||||
| Total | 1,615,301,781.11 | 149,181,630.31 | 605,349,804.98 | 99,718,290.93 | 654,813,144.36 |
(3)Provisionforimpairmentofconstructioninprogressincurrentperiod
Unit:yuan
| Item | Currentaccruedamount | Reasonforaccrual |
| BeltpressingandthreadingmachineforN95masks | 9,899,180.00 | DecreasedmarketdemandforN95masks,anddecreasedrecoverableamountofspecialequipment |
| 23tabletmachineforintelligentmanufacturingproject | 966,300.00 | DecreasedmarketdemandforN95masks,anddecreasedrecoverableamountofspecialequipment |
| Total | 10,865,480.00 | -- |
Otherdescription:
NA
(4)Engineeringmaterials
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
Otherdescription:
23.Productivebiologicalassets
(1)Productivebiologicalassetsusingcostmeasurementmode?Applicable√Notapplicable
(2)Productivebiologicalassetsusingfairvaluemeasurementmode?Applicable√Notapplicable
24.Oilandgasassets
?Applicable√Notapplicable
25.Right-of-useassets
Unit:yuan
| Item | Housesandbuilding | Total |
| I.Originalbookvalue: | ||
| 1.Beginningbalance | 1,046,616,109.25 | 1,046,616,109.25 |
| 2.Amountincreasedincurrentperiod | 242,292,425.07 | 242,292,425.07 |
| (1)Newlease | 241,242,632.81 | 241,242,632.81 |
| (2)Increasebybusinesscombination | 1,217,168.40 | 1,217,168.40 |
| (3)Exchangeratemovement | (167,376.14) | (167,376.14) |
| 3.Amountdecreasedincurrentperiod | 371,924,381.21 | 371,924,381.21 |
| (1)Disposal | 371,924,381.21 | 371,924,381.21 |
| 4.ClosingBalance | 916,984,153.11 | 916,984,153.11 |
| II.Accumulateddepreciation | ||
| 1.Beginningbalance | 514,880,665.81 | 514,880,665.81 |
| 2.Amountincreasedincurrentperiod | 215,592,225.81 | 215,592,225.81 |
| (1)Accrual | 215,305,161.48 | 215,305,161.48 |
| (2)Increasebybusinesscombination | 343,342.93 | 343,342.93 |
| (3)Exchangeratemovement | (56,278.60) | (56,278.60) |
| 3.Amountdecreasedincurrentperiod | 285,844,864.15 | 285,844,864.15 |
| (1)Disposal | 285,844,864.15 | 285,844,864.15 |
| 4.ClosingBalance | 444,628,027.47 | 444,628,027.47 |
| III.Provisionforimpairment | ||
| 1.Beginningbalance | ||
| 2.Amountincreasedincurrentperiod | ||
| (1)Accrual | ||
| 3.Amountdecreasedincurrentperiod | ||
| (1)Disposal | ||
| 4.ClosingBalance | ||
| IV.Bookvalue | ||
| 1.Endingbookvalue | 472,356,125.64 | 472,356,125.64 |
| 2.Beginningbookvalue | 531,735,443.44 | 531,735,443.44 |
Otherdescription:
26.Intangibleassets
(1)Intangibleassets
Unit:yuan
| Item | Landuseright | Patentright | Nonpatentedtechnology | Trademarkright | Softwareuseright | Franchiseduseright | Clientrelations | Total |
| I.Originalbookvalue: | ||||||||
| 1.Beginningbalance | 266,174,018.88 | 1,573,637.86 | 1,710,590.99 | 57,653,383.29 | 10,228,226.53 | 337,339,857.55 | ||
| 2.Amountincreasedincurrentperiod | 300,726,294.69 | 268,369,916.64 | 65,633,484.32 | 45,492,432.55 | 180,488,908.40 | 860,711,036.60 | ||
| (1)Purchase | 142,022,281.98 | 22,052,741.70 | 164,075,023.68 | |||||
| (2)InternalR&D | ||||||||
| (3)Increasebybusinesscombination | 158,704,012.71 | 268,369,916.64 | 65,633,484.32 | 23,439,690.85 | 180,488,908.40 | 696,636,012.92 | ||
| 3.Amountdecreasedincurrentperiod | 253,094.34 | 19,400,242.27 | 19,653,336.61 | |||||
| (1)Disposal | 253,094.34 | 19,400,242.27 | 19,653,336.61 | |||||
| 4.ClosingBalance | 566,900,313.57 | 269,943,554.50 | 67,090,980.97 | 83,745,573.57 | 10,228,226.53 | 180,488,908.40 | 1,178,397,557.54 | |
| II.Accumulatedamortization | ||||||||
| 1.Beginningbalance | 28,039,117.18 | 1,247,454.39 | 1,674,857.66 | 30,449,311.14 | 10,228,226.53 | 71,638,966.90 | ||
| 2.Amountincreasedincurrentperiod | 23,374,782.31 | 21,654,886.22 | 5,789,170.62 | 20,563,375.38 | 5,032,605.48 | 76,414,820.01 | ||
| (1)Accrual | 8,299,689.78 | 19,580,214.16 | 3,327,542.74 | 19,429,103.99 | 5,032,605.48 | 55,669,156.15 | ||
| (2)Increasebybusinesscombination | 15,075,092.53 | 2,074,672.06 | 2,461,627.88 | 1,134,271.39 | 20,745,663.86 | |||
| 3.Amountdecreasedincurrentperiod | 86,473.90 | 2,679,558.92 | 2,766,032.82 | |||||
| (1)Disposal | 86,473.90 | 2,679,558.92 | 2,766,032.82 | |||||
| 4.ClosingBalance | 51,413,899.49 | 22,902,340.61 | 7,377,554.38 | 48,333,127.60 | 10,228,226.53 | 5,032,605.48 | 145,287,754.09 | |
| III.Provisionforimpairment | ||||||||
| 1.Beginningbalance | ||||||||
| 2.Amountincreasedincurrentperiod | ||||||||
| (1)Accrual | ||||||||
| 3.Amount |
| decreasedincurrentperiod | ||||||||
| (1)Disposal | ||||||||
| 4.ClosingBalance | ||||||||
| IV.Bookvalue | ||||||||
| 1.Endingbookvalue | 515,486,414.08 | 247,041,213.89 | 59,713,426.59 | 35,412,445.97 | 175,456,302.92 | 1,033,109,803.45 | ||
| 2.Beginningbookvalue | 238,134,901.70 | 326,183.47 | 35,733.33 | 27,204,072.15 | 265,700,890.65 |
TheproportionofintangibleassetsformedthroughinternalR&DoftheCompanyinthebalanceofintangibleassetsattheendofcurrentperiod:0.00%
(2)Landuserightwithoutcertificateoftitle
Unit:yuan
| Item | Bookvalue | Reasonsfornotobtainingthecertificateoftitle |
| WinnerMedical(Shenzhen)-NorthSideofGuifangRoad,GuanlanStreetPlanning | 27,533,333.33 | Landandrealestateareregardedasawhole,arealestatecertificatecanonlybeappliedaftertheprojectcompletion. |
| WinnerMedical(Hunan)-InfusionclassPhaseIIland | 110,532,032.00 | Landandrealestateareregardedasawhole,arealestatecertificatecanonlybeappliedaftertheprojectcompletion. |
| Total | 138,065,365.33 |
Otherdescription:
27.Developmentexpenditure
Unit:yuan
| Item | Beginningbalance | Amountincreasedincurrentperiod | Amountdecreasedincurrentperiod | ClosingBalance | ||
| Internaldevelopmentexpenditure | Others | Recognizedasintangibleassets | Transfertocurrentprofitandloss | |||
Total
Otherdescription:
28.Goodwill
(1)Originalbookvalueofgoodwill
Unit:yuan
Totalinvestedentitynameorgoodwillformingmatter
| investedentitynameorgoodwillformingmatter | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| Increasebybusinessacquisition | Disposal | |||
| Businesscombinationnotundercommoncontrol-AcquisitionofMalaysiaWinner | 2,681,232.09 | 2,681,232.09 |
| Businesscombinationnotundercommoncontrol-AcquisitionofZhejiangLongterm | 390,472,978.67 | 390,472,978.67 | ||
| Businesscombinationnotundercommoncontrol-AcquisitionofWinnerGuilin | 244,814,604.75 | 244,814,604.75 | ||
| Businesscombinationnotundercommoncontrol-AcquisitionWinnerMedical(Hunan) | 388,989,258.26 | 388,989,258.26 | ||
| Businesscombinationnotundercommoncontrol-AcquisitionofJunjianMedical | 20,397,972.33 | 20,397,972.33 | ||
| Total | 2,681,232.09 | 1,044,674,814.01 | 1,047,356,046.10 |
(2)Provisionforimpairmentofgoodwill
Unit:yuan
| investedentitynameorgoodwillformingmatter | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| Accrual | Disposal | |||
| Businesscombinationnotundercommoncontrol-AcquisitionofMalaysiaWinner | 2,681,232.09 | 2,681,232.09 |
Total
| Total | 2,681,232.09 | 2,681,232.09 |
Informationrelatingtotheassetgrouporassetgroupportfolioofgoodwill
| Bookvalueofassetgrouporassetgroupportfolio | Maincomposition | Bookvalueofassetgrouporassetgroupportfoliowithgoodwill | Recognitionmethod | Anychangeinthecurrentperiod |
| 680,226,310.79 | Long-termassetsofZhejiangLongtermanditssubsidiaries | 1,390,177,181.10 | Wherethereisactivemarketsforproductsproducedbytheassetgroupofgoodwillmaygenerateindependentcashflows,theassetgroupcanbeidentifiedasaseparateassetgroupportfolio | No |
| 152,394,391.38 | Operatinglong-termassetsofWinnerGuilin | 397,208,996.13 | Wherethereisactivemarketsforproductsproducedbytheassetgroupofgoodwillmaygenerateindependentcashflows,theassetgroupcanbeidentifiedasaseparateassetgroupportfolio | No |
| 420,236,363.62 | Long-termassetsofWinnerMedical(Hunan)anditssubsidiaries | 986,450,713.34 | Wherethereisactivemarketsforproductsproducedbytheassetgroupofgoodwillmaygenerateindependentcashflows,theassetgroupcanbeidentifiedasaseparateassetgroupportfolio | No |
| 122,612,354.43 | Long-termassetsofJunjianMedical | 143,010,326.76 | Wherethereisactivemarketsforproductsproducedbytheassetgroupofgoodwillmaygenerateindependentcashflows,theassetgroupcanbeidentifiedasaseparateassetgroupportfolio | No |
Explainthegoodwillimpairmenttestprocess,keyparameters(suchasforecastperiodgrowthrateatthepresentvalueofexpectedfuturecashflow,steadyperiodgrowthrate,profitmargin,discountrate,forecastperiod,etc.)andrecognitionmethodofgoodwillimpairmentloss:
(1)Goodwillimpairmenttests
| Item | ZhejiangLongtermanditssubsidiaries | WinnerGuilin | WinnerMedical(Hunan)anditssubsidiaries | JunjianMedical |
| Bookbalanceofgoodwill① | 390,472,978.67 | 244,814,604.75 | 388,989,258.26 | 20,397,972.33 |
| Balanceofprovisionforimpairmentofgoodwill② | ||||
| Bookvalueofgoodwill③=①-② | 390,472,978.67 | 244,814,604.75 | 388,989,258.26 | 20,397,972.33 |
| Thegoodwillvaluethathasnotbeenrecognizedasaminorityequity④ | 319,477,891.64 | 177,225,091.46 | ||
| Thegoodwillvaluethatwasnotrecognizedasaminorityequityatthebeginningoftheperiod⑤ | ||||
| Adjustedbookvalueofgoodwill⑥=③+④+⑤ | 709,950,870.31 | 244,814,604.75 | 566,214,349.72 | 20,397,972.33 |
| Bookvalueofassetgroup⑦ | 680,226,310.79 | 152,394,391.38 | 420,236,363.62 | 122,612,354.43 |
| Bookvalueofassetgroupincludingoverallgoodwill⑧=⑥+⑦ | 1,390,177,181.10 | 397,208,996.13 | 986,450,713.34 | 143,010,326.76 |
[Note]TheestimatedfuturerecoverableamountofZhejiangLongtermanditssubsidiaries,WinnerGuilin,WinnerMedical(Hunan)anditssubsidiaries,aswellasJunjianMedicalwillbecalculatedbasedonthepresentvalueoftheirestimatedfuturecashflows,whicharebasedontheforecastofcashflowforthenextfiveyearsapprovedbytheCompany.
(2)Importantassumptionsandbasis,keyparameters
1ImportantassumptionsandbasisA.TheaccountingpoliciesadoptedbytheCompanyduringtheincomeforecastperiodaresubstantiallyconsistentwith
thoseadoptedinimportantaspects;B.Theincomeforecastisbasedonthedevelopmentplanundertheconditionofmaintainingtheexistingbusinessscope
andgoingconcern;C.Itisassumedthattheenterpriseinvolvedintheaboveassetgroupcontinuestooperateatitscurrentmanagementlevel
onthetestingbasedate,withoutconsideringtheimpactofthemanagementleveloftheenterprise'sfutureowneronits
futureincome;D.Itisassumedthatthereisnosignificantchangeinthecurrentlaws,regulations,policiesandmacroeconomicsituation
ofthecountry,andthereisnosignificantchangeinthepolitical,economicandsocialenvironmentoftheregionwhere
theenterpriseinvolvedinthetestedassetgroupislocated;
E.Therewillbenosignificantchangesininterestrates,taxbases,taxrates,policy-imposedfees,etc.
Keyparameters:
| Item | Forecastperiod | Growthrateintheforecastperiod | Growthrateinthestableperiod | Profitmargin | Discountrate[Note1] |
| ZhejiangLongtermanditssubsidiaries | 2023-2027(followedbystableperiod) | [Note2] | Unchanged | Basedonprojectedincome,costs,expenses,etc | 12.22% |
| WinnerGuilin | 2023-2027(followedbystableperiod) | [Note3] | Unchanged | Basedonprojectedincome,costs,expenses,etc | 11.49% |
| WinnerMedical(Hunan)anditssubsidiaries | 2023-2027(followedbystableperiod) | [Note4] | Unchanged | Basedonprojectedincome,costs,expenses,etc | 11.91% |
| JunjianMedical | 2023-2027(followedbystableperiod) | [Note5] | Unchanged | Basedonprojectedincome,costs,expenses,etc | 11.40% |
[Note1]Thediscountratereferstotheweightedaveragecapital-costrate(beforetax)basedonthecapitalpricingmodel.[Note2]ZhejiangLongtermanditssubsidiariesaremainlyengagedintheresearchanddevelopment,productionandsalesofproductsrelatedtowoundcare,puncturecare,stomacare,disinfection,minimallyinvasiveandothers.Basedonacomprehensiveanalysisofitssignedcontracts,agreements,developmentplans,businesstrendsovertheyears,marketcompetitionandotherfactors,accordingtospecificproductcategories,itispredictedthattheincomegrowthratesfrom2023to2027willbe18.33%,14.45%,
11.62%,9.71%and7.79%,respectively.Theincomeduringthestableperiodisconsistentwiththepredictedincomeamountin2027.[Note3]WinnerGuilinismainlyengagedintheresearchanddevelopment,productionandsalesofproductssuchasmedicalgloves,protectiveglovesandcondoms.Basedonacomprehensiveanalysisofitssignedcontracts,agreements,developmentplans,businesstrendsovertheyears,marketcompetitionandotherfactors,accordingtospecificproductcategories,itispredictedthattheincomegrowthratesfrom2023to2027willbe-3.24%,8.17%,21.94%,1.26%and1.71%,respectively.Theincomeduringthestableperiodisconsistentwiththepredictedincomeamountin2027.[Note4]WinnerMedical(Hunan)anditssubsidiariesaremainlyengagedintheresearchanddevelopment,productionandsalesofdisposablesterileinfusionmedicaldevices.Basedonacomprehensiveanalysisofitssignedcontracts,agreements,developmentplans,businesstrendsovertheyears,marketcompetitionandotherfactors,accordingtospecificproductcategories,itispredictedthattheincomegrowthratesfrom2023to2027willbe13.18%,21.77%,42.87%,15.60%and8.88%,respectively.Theincomeduringthestableperiodisconsistentwiththepredictedincomeamountin2027.[Note5]JunjianMedicalismainlyengagedinthesalesofmedicalequipment.Basedonacomprehensiveanalysisofitssignedcontracts,agreements,developmentplans,businesstrendsovertheyears,marketcompetitionandotherfactors,accordingtospecificproductcategories,itispredictedthattheincomegrowthratesfrom2023to2027willbe-54.10%,-1.15%,-0.73%,-0.23%and
0.18%,respectively.Theincomeduringthestableperiodisconsistentwiththepredictedincomeamountin2027.Accordingtothetest,thereisnoimpairmentinthegoodwillformedbytheacquisitionofZhejiangLongtermanditssubsidiaries,WinnerGuilin,WinnerMedical(Hunan)anditssubsidiaries,andJunjianMedicalduringthecurrentperiod.ImpactofgoodwillimpairmenttestsThereisnocommitmenttothebusinesscombinationresultingingoodwillinthecurrentperiod.Otherdescription:
29.Long-termunamortizedexpenses
Unit:yuan
| Item | Beginningbalance | Amountincreasedincurrentperiod | Amortizationamountincurrentperiod | Otherdecreases | ClosingBalance |
| Decorationcost | 43,725,887.73 | 10,993,255.06 | 12,360,654.97 | 3,584,118.63 | 38,774,369.19 |
| Decorationexpensesforoperatingleasedfixedassets | 131,059,883.10 | 45,822,936.06 | 61,052,678.90 | 21,912,223.42 | 93,917,916.84 |
| Total | 174,785,770.83 | 56,816,191.12 | 73,413,333.87 | 25,496,342.05 | 132,692,286.03 |
Otherdescription:
30.Deferredincometaxassets/deferredincometaxliabilities
(1)Unoffsetdeferredincometaxassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 635,561,435.85 | 113,878,209.59 | 308,989,374.25 | 55,407,470.14 |
| Unrealizedprofitofinternaltransaction | 176,701,413.90 | 33,954,186.63 | 114,388,686.49 | 23,660,535.47 |
| Deductibleloss | 121,028,998.43 | 29,902,881.36 | 60,670,842.73 | 15,167,710.69 |
| Dismissionwelfare | 2,858,415.48 | 483,093.52 | 2,315,103.48 | 347,265.52 |
| Deferredincome | 98,791,412.91 | 14,929,042.38 | 109,625,401.82 | 17,710,015.89 |
| Memberpoints | 9,067,179.42 | 2,266,794.86 | 10,319,207.78 | 2,579,801.95 |
| Estimatedliabilities | 2,781,740.46 | 624,681.92 | 1,881,955.47 | 410,114.78 |
| Advertisingexpensesinexcessofthetaxdeductiblelimit | 1,176,743.33 | 176,511.50 | 39,046,992.53 | 5,857,048.88 |
| Equityincentivefee | 10,509,464.48 | 1,576,419.67 | ||
| Changesinfairvalueoftradingfinancialassets | 5,189,000.26 | 778,350.04 | ||
| Total | 1,053,156,340.04 | 196,993,751.80 | 657,747,029.03 | 122,716,382.99 |
(2)Unoffsetdeferredincometaxliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||
| Taxabletemporarydifferences | Deferredincometaxliabilities | Taxabletemporarydifferences | Deferredincometaxliabilities | |
| Assetevaluationincrementforbusinesscombinationnotundercommoncontrol | 665,595,964.73 | 109,308,421.87 | ||
| Changesinfairvalueoftradingfinancialassets | 1,983,960.49 | 304,114.59 | 27,097,991.08 | 4,242,794.56 |
| Depreciationoffixedassets | 149,207,192.40 | 22,381,078.85 | 52,132,715.97 | 9,094,365.12 |
| Others | 11,223,250.00 | 1,683,487.50 | ||
| Total | 828,010,367.62 | 133,677,102.81 | 79,230,707.05 | 13,337,159.68 |
(3)Deferredincometaxassetsorliabilitiespresentedasnetamountafteroffset
Unit:yuan
| Item | Endingoffsetamountofdeferredincometaxassetsandliabilities | Endingbalanceofdeferredincometaxassetsandliabilitiesafteroffset | Beginningoffsetamountofdeferredincometaxassetsandliabilities | Beginningbalanceofdeferredincometaxassetsandliabilitiesafteroffset |
| Deferredincometaxassets | 196,993,751.80 | 122,716,382.99 | ||
| Deferredincometaxliabilities | 133,677,102.81 | 13,337,159.68 |
(4)Detailsofunrecognizeddeferredincometaxassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||
| Deductibleloss | 251,019,604.38 | 206,266,023.76 | ||
| Provisionforimpairmentofassetsandamortizationofdepreciation | 7,053,355.76 | 5,372,991.42 | ||
| Dismissionwelfare | 996,517.00 | |||
| Total | 259,069,477.14 | 211,639,015.18 |
(5)Deductiblelossesonunrecognizeddeferredincometaxassetswillexpireinthefollowingyear
Unit:yuan
| Year | Closingbalance | Beginningamount | Remark | ||
| 2022 | 14,402,997.46 | ||||
| 2023 | 25,574,944.59 | 25,574,944.59 | |||
| 2024 | 48,794,287.92 | 48,810,687.88 | |||
| 2025 | 46,546,726.71 | 44,934,541.40 | |||
| 2026 | 74,343,804.38 | 65,783,169.18 | |||
| 2027 | 55,364,880.58 | ||||
| Nomaturitydate | 394,960.20 | 6,759,683.25 | |||
| Total | 251,019,604.38 | 206,266,023.76 |
Otherdescription:
31.Othernon-currentassets
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Advanceprojectpayment/equipmentpurchasepayment/advancestoreengineeringanddecorationpayment | 83,524,640.64 | 83,524,640.64 | 115,571,001.80 | 115,571,001.80 | ||
| Total | 83,524,640.64 | 83,524,640.64 | 115,571,001.80 | 115,571,001.80 | ||
Otherdescription:
32.Short-termloans
(1)Classificationofshort-termloans
Unit:yuan
| Item | ClosingBalance | Beginningbalance | |
| Guaranteedborrowing | 5,000,000.00 | ||
| Debtofhonor | 100,000,000.00 | ||
| Billfinancing | 1,130,050,000.00 | ||
| Tradefinancing(LetterofCredit,etc.) | 1,000,000,000.00 | ||
| Mortgage+Guaranteedborrowing | 60,000,000.00 | ||
| Borrowinginterest | 168,930.85 | ||
| Total | 2,295,218,930.85 |
Descriptionontheclassificationofshort-termborrowing:
Billdiscount:
1.WinnerMedical(Shenzhen)signedBankAcceptanceAgreementswithIndustrialandCommercialBankofChina
ShenzhenLonghuaBranchduringtheperiodfromMarchtoMay2022:0400000014-2022(AcceptanceAgreement)No.00046,0400000014-2022(AcceptanceAgreement)No.00047,0400000014-2022(AcceptanceAgreement)No.00048,0400000014-2022(AcceptanceAgreement)No.00019,0400000014-2022(AcceptanceAgreement)No.00110,0400000014-2022(AcceptanceAgreement)No.00107,BankAcceptanceAgreements:0400000014-2022(AcceptanceAgreement)No.00200,0400000014-2022(AcceptanceAgreement)No.00202,0400000014-2022(AcceptanceAgreement)No.00757,0400000014-2022(AcceptanceAgreement)No.00758,400000014-2022(AcceptanceAgreement)No.00756,BankAcceptanceAgreement:0400000014-2022(AcceptanceAgreement)No.00180,0400000014-2022(AcceptanceAgreement)No.00181,0400000014-2022(AcceptanceAgreement)No.00182,withatotalamountofRMB480,000,000.00andarateof1.20%-2.10%.AsofDecember31,2022,allbillsnotmaturedhavebeenfullydiscounted.
2.WinnerMedical(Shenzhen)signedBankAcceptanceAgreementswithAgriculturalBankofChinaShenzhenJinxiu
JiangnanBranchduringtheperiodfromOctobertoNovember2022:81180120220000657,81180120220000603,81180120220000597,withatotalamountofRMB300,000,000.00andarateof1.35-1.55%.AsofDecember31,2022,allbillsnotmaturedhavebeenfullydiscounted.
3.WinnerMedical(Shenzhen)signedBankAcceptanceAgreementswithBankofChinaLimitedShenzhenLonghuaBranchduringtheperiodfromMaytoDecemeber2022:02022Z.Z.Y.H.C.S.ZiNo.0024-1,2022Z.Z.Y.H.C.S.ZiNo.0024-2,2022Z.Z.Y.H.C.S.ZiNo.0024-3,withatotalamountofRMB300,000,000.00andarateof1.05-1.69%.AsofDecember31,2022,thematuredbillsofRMB100,000,000.00(RMB100million)havebeenrepaid,whiletheremainingRMB200,000,000.00notyetmaturedhasbeenfullydiscounted.
4.ShenzhenPurcottonsignedaBankAcceptanceAgreementswithIndustrialandCommercialBankofChinaShenzhen
LonghuaBranchinMarchtoMayandDecemberof2022:0400000014-2022(AcceptanceAgreement)No.00203,0400000014-2022(AcceptanceAgreement)No.00199,0400000014-2022(AcceptanceAgreement)No.00760,0400000014-2022(AcceptanceAgreement)No.00761,0400000014-2022(AcceptanceAgreement)No.00759,withatotalamountofRMB150,000,000.00andarateof1.20%-1.35%.AsofDecember31,2022,allbillsnotmaturedhavebeenfullydiscounted.
5.OnDecember27,2022,LongtermMedicalsignedanexportfactoringfinancingcontractwiththeBankofChina
LimitedDeqingBranch.ThecontractwasnumberedDQ2022WT034,withavalueofRMB50,000.00,theexpirationdateonMay25,2023andaninterestrateof3.55%.AsofDecember31,2022,theamounthasnotbeenreturned.
Tradefinancing(LetterofCredit,etc.):
1.OnFebruary28,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberof744101KL22000008at
ChinaCITICBankShenzhenBranch,withanamountofRMB100,000,000.00andaninterestrateof2.65%.Thecreditagreementwasnumbered2022S.Y.L.H.Z.ZiNo.0001,withalimitofRMB300,000,000.00.ThebeneficiarywasWinnerMedical(Chongyang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
2.OnMarch24,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberof744101KL22000021at
ChinaCITICBankShenzhenBranch,withanamountofRMB100,000,000.00andaninterestrateof2.50%.Thecreditagreementwasnumbered2022S.Y.L.H.Z.ZiNo.0001,withalimitofRMB300,000,000.00.ThebeneficiarywasWinnerMedical(Chongyang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotyetmaturedhasbeendiscounted.
3.OnJune28,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberofEL7552200358atChina
MerchantsBankShenzhenBranch,withanamountofRMB200,000,000.00andaninterestrateof1.68%.Thecreditagreementwasnumbered755XY2022014777,withalimitofRMB700,000,000.00.ThebeneficiarywasWinnerMedical(Chongyang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
4.OnJuly26,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberof744101KL22000051atChinaCITICBankShenzhenBranch,withanamountofRMB100000000.00andaninterestrateof1.61%.Thecreditagreementnumberis2022S.Y.L.H.Z.ZiNo.0001,withalimitofRMB300,000,000.00.ThebeneficiarywasWinnerMedical(Chongyang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
5.OnJuly21,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberofEL7552200402atChinaMerchantsBankShenzhenBranch,withanamountofRMB100,000,000.00andaninterestrateof1.67%.Thecreditagreementwasnumbered755XY2022014777,withalimitofRMB700,000,000.00.ThebeneficiarywasWinnerMedical(Chongyang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
6.OnJuly28,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberofEL7552200434atChinaMerchantsBankShenzhenBranch,withanamountofRMB200,000,000.00andaninterestrateof1.25%.Thecreditagreementwasnumbered755XY2022014777,withalimitofRMB700,000,000.ThebeneficiarywasWinnerMedical(Huanggang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
7.OnSeptember15,2022,PurcottonTechnologyCo.,Ltd.openedaletterofcreditwiththenumberofLC7552200014at
ChinaMerchantsBankShenzhenBranch,withanamountofRMB90,000,000.00andaninterestrateof1.33%.Thecreditagreementwasnumbered755XY2022015269,withalimitofRMB300000000.00(RMB300million).ThebeneficiarywasWinnerMedical(Huanggang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.
8.OnSeptember16,2022,WinnerMedical(Shenzhen)openedaletterofcreditwiththenumberofLC7552200019at
ChinaMerchantsBankShenzhenBranch,withanamountofRMB110,000,000.00andaninterestrateof1.29%.Thecreditagreementwasnumbered755XY2022014777,withalimitofRMB700,000,000.00.ThebeneficiarywasWinnerMedical(Huanggang),withoutrelevantmortgageguarantee.AsofDecember31,2022,thisletterofcreditnotmaturedhasbeendiscounted.Creditloan:
1.OnMay12,2022,WinnerMedical(Shenzhen)signedaWorkingCapitalLoanContractwithBankofChinaLimited
ShenzhenLonghuaBranch(theContractwasnumbered2022Z.Z.Y.H.J.ZiNo.0024-1).TheContractwasasingleagreementundertheCreditLineAgreementnumbered2020Z.Z.Y.H.E.X.ZiNo.0024signedbyandbetweenWinnerMedicalCo.,Ltd.andBankofChinaLimitedShenzhenLonghuaBranch.TheloanamountwasRMB100,000,000.00,andtheinterestratewas2.85%.TheloanperiodisfromMay16,2022toMay16,2023,andthereisnorelevantmortgageguarantee.AsofDecember31,2022,theloanhasnotbeenrepaid.Mortgage+Guaranteedborrowing:
1.OnJanuary19,2022,LongtermMedicalsignedaWorkingCapitalLoanContractwiththeDeqingBranchofHangzhouBankCo.,Ltd.Thecontractwasnumbered137C110202100002,withaloanamountofRMB5,000,000.00,theexpirationdateonJanuary18,2023andaninterestrateof4.2%.WuKangping/HuangLepeiprovidedguaranteesfortwoloansandsignedaguaranteecontractnumbered137C11020210000102/103/104.AsofDecember31,2022,theloanhasnotbeenrepaid.
2.In2022,LongtermMedicalsignedthreeworkingcapitalloancontractswithBankofChinaLimitedDeqingBranch:1)thecontractsignedonFebruary24,2022,withthenumberofDQ2022R.J.030,aloanamountofRMB30,000,000.00,maturitydateonFebruary23,2023,andaninterestrateof3.9%.AsofDecember31,2022,therearestillRMB5,000,000.00remainsunrepaid;2)thecontractsignedonJune16,2022,withthenumberofDQ2022R.J.096,aloanamountofRMB20,000,000.00,maturitydateonJune15,2023,andaninterestrateof3.9%.AsofDecember31,2022,ithasnotbeenrepaid;3)thecontractsignedonDecember26,2022,withthenumberofDQ2022R.J.221,aloanamountofRMB25,000,000.00,maturitydateonAugust22,2023,andaninterestrateof3.9%.AsofDecember31,2022,ithasnotbeenrepaid.WuKangpingandhiswifeHuangLepeiprovidedguaranteesfortheabovethreeloansandsignedaguaranteecontractnumberedDQ2022R.B.016;LongtermMedicalmortgagedthepropertywithavalueofRMB18,594,000.00andsignedamortgagecontractnumberedDQ2021R.D.010;LongtermMedicalmortgagedtheindustriallandandplantwithavalueofRMB167,620,000.00andsignedamortgagecontractnumberedDQ2021R.D.
002.LongtermMedicalmortgagedtheindustriallandandplanywithavalueofRMB164,670,000.00andsignedamortgagecontractnumberedDQ2022R.D.074.Guaranteedborrowing:
1.OnApril8,2022,ZhejiangLongtermsignedaworkingcapitalloancontractwithHuzhouDeqingBranchofIndustrial
BankCo.,Ltd.ThecontractnumberwasX.Y.H.D.Q.L.D.No.W20220328-1,withaloanamountofRMB5,000,000.00,thematuritydateonApril7,2023,andaninterestrateof3.08%.AnothercontractnumberwasX.Y.H.D.Q.L.D.No.W20220328-2,withaloanamountofRMB5,000,000.00,maturitydateonApril7,2023,andaninterestrateof3.80%.WuKangping/HuangLepeiandLongtermMedicalprovidedguaranteesfortheloanandsignedaguaranteecontractnumberedX.Y.H.D.Q.B.No.W20210412.LongtermMedicalmortgagedindustrialrealestateandsignedamortgagecontractnumberedX.Y.H.D.Q.D.No.20210625,withamortgageamountofRMB11,825,991.00.AsofDecember31,2022,theabovetwoloanshavenotbeenrepaid.
(2)short-termloansunpaidoverdueThetotalamountofoverdueshort-termloansattheendoftheperiodisRMBXXXX,ofwhichtheimportantoverdueshort-termborrowingsareasfollows:
Unit:yuan
| Borrower | ClosingBalance | Borrowinginterestrate | Overduetime | Overdueinterestrate |
Otherdescription:N/A
33.Tradingfinancialliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Including: | ||
| Including: |
Otherdescription:N/A
34.Derivativefinancialliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Otherdescription:N/A
35.Notespayable
Unit:yuan
| Type | ClosingBalance | Beginningbalance |
| Bankacceptancebill | 24,760,000.00 | 36,200,130.04 |
| Total | 24,760,000.00 | 36,200,130.04 |
ThetotalamountofnotespayabledueandunpaidattheendofcurrentperiodisRMB0.00.
36.Accountspayable
(1)Presentationofaccountspayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Within1year(including1year) | 1,094,753,592.92 | 714,681,791.55 |
| 1to2years(including2years) | 19,338,059.30 | 16,519,858.09 |
| 2to3years(including3years) | 2,914,279.27 | 2,213,757.41 |
| Morethan3years | 2,568,587.09 | 1,106,083.55 |
| Total | 1,119,574,518.58 | 734,521,490.60 |
(2)Importantaccountspayablewiththeagingmorethan1year
Unit:yuan
| Item | ClosingBalance | Reasonsforfailureofpaymentorcarryover |
Otherdescription:N/A.
37.Advancefromcustomers
(1)Presentationofadvancefromcustomers
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
(2)Importantadvancesfromcustomerswiththeagingmorethan1year
Unit:yuan
| Item | ClosingBalance | Reasonsforfailureofpaymentorcarryover |
38.Contractliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Customerconsiderationreceived | 557,752,074.66 | 330,856,457.64 |
| Memberpoints | 9,067,179.42 | 10,319,207.78 |
| Total | 566,819,254.08 | 341,175,665.42 |
Amountandreasonsforsignificantchangesinbookvalueduringthereportingperiod
Unit:yuan
| Item | Amountofchange | Reasonforchange |
39.Payrollpayable
(1)Presentationofpayrollpayable
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| I.Short-termcompensation | 174,579,726.18 | 1,786,566,427.11 | 1,660,006,341.53 | 301,139,811.76 |
| II.Welfareafterdismission-definedcontributionplan | 7,786,354.86 | 116,237,654.55 | 116,568,512.27 | 7,455,497.14 |
| III.Dismissionwelfare | 2,315,103.48 | 12,440,659.44 | 10,900,830.44 | 3,854,932.48 |
| IV.Otherwelfareduewithin1year | 36,880.12 | 36,880.12 | ||
| Total | 184,681,184.52 | 1,915,281,621.22 | 1,787,512,564.36 | 312,450,241.38 |
(2)Presentationofshort-termcompensation
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| 1.Salary,bonus,allowanceandsubsidy | 171,917,627.57 | 1,650,452,245.55 | 1,524,704,914.13 | 297,664,958.99 |
| 2.Welfareexpensesforemployees | 1,898,566.41 | 42,631,886.13 | 41,741,236.48 | 2,789,216.06 |
| 3.Socialsecurity | 583,615.98 | 55,140,209.98 | 55,314,428.77 | 409,397.19 |
| Including:medicalinsurancepremium | 391,727.18 | 49,177,465.94 | 49,336,817.71 | 232,375.41 |
| Industrialinjuryinsurancepremium | 127,114.57 | 3,341,754.91 | 3,344,431.49 | 124,437.99 |
| Birthinsurancepremium | 64,774.23 | 2,620,989.13 | 2,633,179.57 | 52,583.79 |
| 4.Housingaccumulationfund | 5,184.00 | 35,996,506.01 | 35,997,747.01 | 3,943.00 |
| 5.Unionduesandstaffeducationfund | 174,732.22 | 1,689,525.94 | 1,591,961.64 | 272,296.52 |
| 6.Short-termcompensatedabsences | 9,307.30 | 9,307.30 | ||
| 7.Short-termprofitsharingplan | 646,746.20 | 646,746.20 | ||
| Total | 174,579,726.18 | 1,786,566,427.11 | 1,660,006,341.53 | 301,139,811.76 |
(3)Presentationofdefinedcontributionplans
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| 1.Basicendowmentinsurance | 7,669,900.83 | 112,500,090.67 | 112,819,427.16 | 7,350,564.34 |
| 2.Unemploymentinsurancepremium | 116,454.03 | 3,737,563.88 | 3,749,085.11 | 104,932.80 |
| Total | 7,786,354.86 | 116,237,654.55 | 116,568,512.27 | 7,455,497.14 |
Otherdescription:
40.Taxespayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Addedvaluetax | 96,897,978.48 | 4,177,794.77 |
| Corporateincometax | 197,571,709.68 | 80,626,257.39 |
| Individualincometax | 4,579,372.68 | 2,915,638.55 |
| Urbanmaintenanceandconstructiontax | 8,167,572.37 | 484,733.91 |
| Housingpropertytax | 5,597,557.89 | 2,544,714.33 |
| Educationsurchargeandlocaleducationsurcharge | 6,150,636.51 | 365,615.00 |
| Landusetax | 1,153,638.19 | 1,462,224.90 |
| Environmentalprotectiontax | 35,809.57 | 22,044.78 |
| Stampduty | 2,101,599.24 | 1,260,046.05 |
| Total | 322,255,874.61 | 93,859,069.68 |
Otherdescription:
41.Otherpayables
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Otherpayables | 570,843,242.88 | 443,946,028.46 |
| Total | 570,843,242.88 | 443,946,028.46 |
(1)Interestpayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Importantoverdueandunpaidinterest:
Unit:yuan
| Borrower | Overdueamount | Overduereason |
Otherdescription:
(2)Dividendspayable
Unit:yuan
| Borrower | ClosingBalance | Beginningbalance |
Otherexplanations,includingimportantdividendspayablethathavenotbeenpaidformorethan1year,shalldisclosethereasonsfornon-payment:
(3)Otherpayables
1)Otherpayableslistedbynature
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Intercoursefundswithrelatedpartiesoutsidethescopeofconsolidation | 83,907,582.49 | |
| Intercoursefundswiththethirdparties | 19,647,462.33 | 20,895,856.79 |
| Marginanddeposit | 170,299,618.40 | 162,215,690.65 |
| Commission | 58,911,887.83 | 76,615,789.42 |
| Freightandotheraccruedexpenses | 222,336,599.71 | 176,844,834.39 |
| Others | 15,740,092.12 | 7,373,857.21 |
| Total | 570,843,242.88 | 443,946,028.46 |
2)Importantotherpayablewiththeagingmorethan1year
Unit:yuan
| Item | ClosingBalance | Reasonsforfailureofpaymentorcarryover |
Otherdescription:N/A.
42.Liabilitiesheldforsales
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Otherdescription:N/A
43.Non-currentliabilitiesduewithinoneyear
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Long-termborrowingduewithinoneyear | 8,011,977.78 | |
| Long-termpayablesduewithinoneyear | 620,000.00 | |
| Leaseliabilitiesduewithinoneyear | 207,314,911.54 | 216,181,531.82 |
| Total | 215,946,889.32 | 216,181,531.82 |
Otherdescription:
Long-termborrowingduewithinoneyear:
1.LongtermHealthsignedalong-termloancontractnumbered8811120180040452withZhejiangDeqingRural
CommercialBankCo.,Ltd.onDecember31,2018withaloanamountofRMB28,000,000.00,amaturitydateonDecember20,2023,andtheborrowingrateof4.00%.ThemortgagedamountisRMB53,712,324.86,andthemortgagecontractnumbered8811320210000908issignedwiththerealestatecertificate[No.Zhejiang(2021)DeqingCountyRealEstateNo.0001524]ofitsBuildingsNo.1-6.AsofDecember31,2022,theprincipaloftheloanofRMB8,000,000.00remainedunrepaid.
44.Othercurrentliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Refundpayable | 3,963,108.90 | 2,012,198.90 |
| Outputtaxtobetransferred | 55,641,482.95 | 22,153,201.60 |
| Total | 59,604,591.85 | 24,165,400.50 |
Increase/decreaseofshort-termbondspayable:
Unit:yuan
| Nameofbond | Bookvalue | Issuedate | Maturityofbond | Issueamount | Beginningbalance | Currentissue | Accruedinterestatbookvalue | Amortizationofpremiumanddiscount | Currentrepayment | ClosingBalance |
Total
Otherdescription:
45.Long-termloans
(1)Classificationoflong-termborrowing
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Descriptionontheclassificationoflong-termborrowing:
Otherdescriptions,includinginterestraterange:
46.Bondspayable
(1)Bondspayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
(2)Increaseanddecreaseofbondspayable(excludingpreferredshares,perpetualbondsandotherfinancialinstruments
classifiedasfinancialliabilities)
Unit:yuan
| Nameofbond | Bookvalue | Issuedate | Maturityofbond | Issueamount | Beginningbalance | Currentissue | Accruedinterestatbookvalue | Amortizationofpremiumanddiscount | Currentrepayment | ClosingBalance |
Total
| Total | —— |
(3)Descriptionofconditionsandtimeofconversionofconvertiblecorporatebonds
(4)DescriptionofotherfinancialinstrumentsclassifiedasfinancialliabilitiesBasicinformationoftheoutstandingpreferredshares,perpetualbondsandotherfinancialinstrumentsattheendoftheperiodTableofchangesinoutstandingfinancialinstruments,suchaspreferredshares,perpetualbondsattheendoftheperiod
Unit:yuan
| Outstandingfinancialinstruments | Thebeginningoftheperiod | Increaseincurrentperiod | Decreaseincurrentperiod | Theendoftheperiod | ||||
| Quantity | Bookvalue | Quantity | Bookvalue | Quantity | Bookvalue | Quantity | Bookvalue | |
DescriptionofthebasisfortheclassificationofotherfinancialinstrumentsintofinancialliabilitiesOtherdescription:
47.Leaseliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Leasepayments | 365,030,013.20 | 431,547,562.69 |
| Unrecognizedfinancingexpenses | -38,570,315.30 | -49,738,637.60 |
| Total | 326,459,697.90 | 381,808,925.09 |
Otherdescription:
48.Long-termpayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
(1)Long-termpayableslistedbynature
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Otherdescription:
(2)Specialaccountspayable
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance | Causes |
Otherdescription:
49.Long-termpayrollpayable
(1)Tableoflong-termpayrollpayable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| I.Welfareafterdismission-netliabilitiesofdefinedbenefitplan | 9,199,637.94 | |
| Long-termpayrollpayableduewithinoneyear | -620,000.00 | |
| Total | 8,579,637.94 |
(2)ChangesindefinedbenefitplanPresentvalueofdefinedbenefitplanobligations:
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Plannedassets:
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Netliabilities(netassets)ofdefinedbenefitplan
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Descriptionofthecontentofdefinedbenefitplananditsrelatedrisks,impactontheCompany'sfuturecashflow,timeanduncertainty:
Descriptionofsignificantactuarialassumptionsandsensitivityanalysisresultsofdefinedbenefitplan:
Otherdescription:
50.Estimatedliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance | Causes |
Otherdescriptions,includingrelevantimportantassumptionsandestimationdescriptionsofimportantestimatedliabilities:
51.Deferredincome
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance | Causes |
| Governmentsubsidies | 109,625,401.82 | 6,439,144.46 | 17,273,133.37 | 98,791,412.91 | Governmentsubsidiesrelatedtoassets |
| Total | 109,625,401.82 | 6,439,144.46 | 17,273,133.37 | 98,791,412.91 |
Projectsinvolvinggovernmentsubsidies:
Unit:yuan
| Liabilityitem | Beginningbalance | Amountofadditionalsubsidyincurrentperiod | Amountincludedincurrentnon-operatingincome | Amountincludedinotherincomeincurrentperiod | Amountoffsettingthecostinthecurrentperiod | Otherchanges | ClosingBalance | Asset/incomerelated |
| Specialsubsidyforprovincialhigh-techindustrydevelopmentprojectsin2012-WinnerMedical(Huanggang) | 218,752.67 | 218,752.67 | 0.00 | Assetrelated | ||||
| Subsidyforscienceandtechnologysupport |
| planprojectsofHubeiin2014(thesecondbatch)-WinnerMedical(Huanggang) | 562,500.00 | 150,000.00 | 412,500.00 | Assetrelated | |||||||
| SubsidyforcompanyplanningchangeduetoHuanggangChibiAvenuedemolition-WinnerMedical(Huanggang) | 2,377,019.38 | 105,645.31 | 2,271,374.07 | Assetrelated | |||||||
| SubsidyforR&DprojectsinTechnologyCenter-theCompany | 755,328.89 | 210,556.48 | 544,772.41 | Assetrelated | |||||||
| ReductionandexemptionofthetransferfeesoflanduserightsinthenewmedicalbandagefactoryofWinnercompanyinPailouTown,Jingmen-WinnerMedical(Jingmen) | 609,650.00 | 20,320.00 | 589,330.00 | Assetrelated | |||||||
| Subsidyfundsforinfrastructureconstructionofmunicipalgovernmentprojects-WinnerMedical(Chongyang) | 8,856,862.50 | 413,550.00 | 8,443,312.50 | Assetrelated | |||||||
| Subsidyfundsforlandandsubsidyfundsforsewagetreatment-WinnerMedical(Jiayu) | 9,802,666.67 | 406,833.24 | 9,395,833.43 | Assetrelated | |||||||
| Subsidyfundsforextensionprojectofcottonspunlacednon-wovenfabric(Line8)intheHuanggangprovincialbudgetinvestmentplanin2015-WinnerMedical(Huanggang) | 225,000.00 | 60,000.00 | 165,000.00 | Assetrelated | |||||||
| SpecialsubsidyfundsforindustrialdevelopmentinHuanggangCityin2014-WinnerMedical(Huanggang) | 93,750.00 | 25,000.00 | 68,750.00 | Assetrelated | |||||||
| SubsidyfundsforkeytechnicaltransformationandexpansionprojectofindustrialenterpriseinTianmenin2015-WinnerMedical(Tianmen) | 212,477.00 | 212,477.00 | 0.00 | Assetrelated | |||||||
| Specialsubsidyfundsurbanindustrialdevelopmentin2015(constructionof2#sanitaryproductsproductionline)-WinnerMedical(Huanggang) | 170,000.00 | 40,000.00 | 130,000.00 | Assetrelated | |||||||
| Automatictransformationofsurgicalconsumablesproductionline-theCompany | 1,023,000.00 | 186,000.00 | 837,000.00 | Assetrelated | |||||||
| RewardsforkeyindustrialtechnologicaltransformationandexpansionprojectsofTianmenin2016-WinnerMedical(Tianmen) | 262,481.00 | 50,004.00 | 212,477.00 | Assetrelated | |||||||
| SubsidyforincreasingproductionandexpandingproductioninTianmenin2017-WinnerMedical(Tianmen) | 85,000.00 | 15,000.00 | 70,000.00 | Assetrelated | |||||||
| SubsidyforgasboilersinYichang-WinnerMedical(Yichang) | 84,000.13 | 15,999.96 | 68,000.17 | Assetrelated | |||||||
| Subsidyforsecondbatchoftraditionalindustrytransformationin2017-WinnerMedical(Huanggang) | 1,098,165.26 | 209,174.28 | 888,990.98 | Assetrelated | |||||||
| Cottonspunlacednon-wovenfabricprojectwiththeproductionof15,000tonsin2017-WinnerMedical(Tianmen) | 396,226.55 | 79,245.24 | 316,981.31 | Assetrelated | |||||||
| Keytechnicaltransformationandexpansionprojects(cottonspunlacedwipesproductionlineproject)-WinnerMedical(Tianmen) | 594,595.00 | 108,108.00 | 486,487.00 | Assetrelated | |||||||
| Productionlineprojectwithanannualoutputof120millionbalesofcottonwipesin2017-WinnerMedical(Tianmen) | 599,134.56 | 107,307.72 | 491,826.84 | Assetrelated | |||||||
| Specialfundsforsecondbatchofthetransformationandupgradingoftraditionalindustries-WinnerMedical(Yichang) | 156,250.12 | 24,999.96 | 131,250.16 | Assetrelated | |||||||
| TechnicalinnovationsubsidyforPhaseIIExpansionProjectofPurcotton-WinnerMedical(Jingmen) | 4,325,520.65 | 166,366.20 | 4,159,154.45 | Assetrelated | |||||||
| Keytechnicaltransformationandexpansionprojects(cottonspunlacedwipesproductionproject)-WinnerMedical(Tianmen) | 741,666.75 | 99,999.96 | 641,666.79 | Assetrelated | |||||||
| 20180311Subsidiesforresearch,scienceandinnovationonthetechnologyofthermo-responsiveself-curingwoundregenerationandrepairmaterials-theCompany | 792,714.37 | 239,811.33 | 552,903.04 | Assetrelated | |||||||
| Specialfundsforprovincialtraditionalindustrytransformationandupgrading-thesecondbatchofliquidationblockfundsubsidiesin2018- | 1,339,047.62 | 52,857.12 | 1,286,190.50 | Assetrelated | |||||||
| WinnerMedical(Jiayu) | ||||||||||
| Subsidiesforfirstbatchoftechnologicaltransformationawardofindustrialenterprisesin2018-WinnerMedical(Chongyang) | 690,375.08 | 106,157.11 | 584,217.97 | Assetrelated | ||||||
| Specialfundsforprovincialtraditionalindustrytransformationandupgrading-thefirstbatchofblockfundsallocationplaninTianmenin2019-WinnerMedical(Tianmen) | 1,024,137.94 | 136,551.72 | 887,586.22 | Assetrelated | ||||||
| Firstbatchoftraditionalsubsidiesin2019-WinnerMedical(Huanggang) | 968,000.00 | 121,000.00 | 847,000.00 | Assetrelated | ||||||
| Technicalimprovementsubsidyfordistrictsin2019-WinnerMedical(Jingmen) | 349,349.24 | 29,112.36 | 320,236.88 | Assetrelated | ||||||
| TechnicaltransformationprojectofkeymaterialproductionenterprisesforShenzhenpublichealtheventpreventionandcontrolin2020-theCompany | 17,500,000.00 | 2,000,000.00 | 15,500,000.00 | Assetrelated | ||||||
| SpecialsubsidyofMunicipalBureauofEconomyandInformationTechnologyfortheissuanceoftechnicaltransformationonemergencymaterialsupportsystemconstruction-WinnerMedical(Huanggang) | 438,269.22 | 438,269.22 | 0.00 | Assetrelated | ||||||
| Specialfundsfromthecentralgovernment'sbudgetformunicipalfinancialmaskbusinessexpansion-WinnerMedical(Huanggang) | 56,470.58 | 56,470.58 | 0.00 | Assetrelated | ||||||
| Subsidyforproductionofmaterialsforpublichealtheventsin2020-WinnerMedical(Huanggang) | 3,420,000.00 | 3,420,000.00 | 0.00 | Assetrelated | ||||||
| Technicalimprovementsubsidyfordistrictsin2019-WinnerMedical(Jingmen) | 357,818.15 | 29,818.20 | 327,999.95 | Assetrelated | ||||||
| Specialfundsforthetransformationandupgradingoftraditionalindustriesin2019-WinnerMedical(Jiayu) | 696,428.60 | 26,785.68 | 669,642.92 | Assetrelated | ||||||
| Subsidyforsurgicalgownproductionlineproject-WinnerMedical(Chongyang) | 3,279,279.27 | 432,432.44 | 2,846,846.83 | Assetrelated | ||||||
| Subsidyforpurchaseofepidemicpreventionequipmentinkeyenterprisesof“ThreeBatches”-WinnerMedical(Chongyang) | 4,979,327.73 | 563,697.48 | 4,415,630.25 | Assetrelated | ||||||
| Specialfundsfortheprojectonimplementingthetechnicalreformationpolicyof“ZeroLand”inWuhanandthemunicipalindustrialinvestmentandtechnicaltransformationoftheBureauforScience,TechnologyandEconomicInformationTechnologyofXinzhouDistrict-WinnerMedical(Wuhan) | 7,126,566.91 | 582,288.70 | 6,544,278.21 | Assetrelated | ||||||
| Subsidyforcapacityexpansion&technicalupgradingofenterprisesproducingmaterialsforpublichealthevents-WinnerMedical(Wuhan) | 2,779,116.66 | 591,720.31 | 2,187,396.35 | Assetrelated | ||||||
| Provincialsubsidyforpurchasingequipmentinkeyenterpriseof“ThreeBatches”-WinnerMedical(Huanggang) | 2,522,692.27 | 2,522,692.27 | 0.00 | Assetrelated | ||||||
| Specialfundsforthehigh-qualitydevelopmentofmanufacturingin2020-WinnerMedical(Huanggang) | 2,691,588.78 | 336,448.60 | 2,355,140.18 | Assetrelated | ||||||
| Technicaltransformationfundsforurbanareasin2021-WinnerMedical(Huanggang) | 1,040,625.00 | 470,000.00 | 151,666.65 | 1,358,958.35 | Assetrelated | |||||
| Equipmentsubsidiesforpublichealtheventsin2021-WinnerMedical(Jingmen) | 5,525,000.00 | 1,700,000.00 | 3,825,000.00 | Assetrelated | ||||||
| 2020Provincialspecialfundsforthehigh-qualitydevelopmentofmanufacturing-WinnerMedical(Jiayu) | 903,508.78 | 105,263.16 | 798,245.62 | Assetrelated | ||||||
| Annualequipmentinvestmentsubsidies(SpunlacePhaseIII,warehouseestablishment)-WinnerMedical(Tianmen) | 15,000,000.00 | 375,000.00 | 14,625,000.00 | Assetrelated | ||||||
| 1millionprovincialspecialfundsforthedevelopmentofmanufacturing-WinnerMedical(Wuhan) | 895,694.83 | 125,460.48 | 770,234.35 | Assetrelated | ||||||
| Receivedsubsidiesfromthedevelopmentof | 1,558,860.54 | 400,000.00 | 34,910.04 | 1,923,950.50 | Assetrelated | |||||
| theemergencymaterialsecuritysystemofcentralgovernmentforproductioncapacityimprovement-WinnerMedical(Wuhan) | |||||||
| Technicaltransformationfundsforurbanareasin2022-WinnerMedical(Huanggang)(1*) | 4,094,200.00 | 4,094,200.00 | Assetrelated | ||||
| Awardfortechnicalupgradingproject-WinnerMedical(Chongyang) | 600,000.00 | 65,454.55 | 534,545.45 | Assetrelated | |||
| Industrialsupportfundsformulti-layerbabyfacialtowelproductionprojectsin2022-WinnerMedical(Yichang) | 276,482.00 | 5,900.51 | 270,581.49 | Assetrelated | |||
| SpecialfundforhighqualitydevelopmentofmanufacturinginZhijiangin2021-WinnerMedical(Yichang) | 596,100.00 | 14,902.50 | 581,197.50 | Assetrelated | |||
| Others | 79,371.94 | 2,362.46 | 27,566.82 | 54,167.58 | Assetrelated | ||
| Total | 109,625,401.82 | 6,439,144.46 | 17,273,133.37 | 98,791,412.91 |
Otherdescription:
1*AccordingtotheNoticeonOrganizingtheApplicationofSpecialFundsfortheTransformationandUpgradingofTraditionalIndustriesin2021(H.J.XB.[2021]No.12),andtheimplementedNoticeoftheMunicipalGovernmentOfficeonIssuingtheThreeYear(2021-2023)ActionPlantoSupporttheNewRoundofEnterpriseTechnologicalTransformation,OnDecember19,2022andNovember4,2022,WinnerMedical(Huanggang)receivedRMB2,594,200.00andRMB1,500,000.00fromHuanggangEconomicandInformationTechnologyBureauandManagementCommitteeofHuanggangHigh-techIndustrialDevelopmentZoneforurbantechnologytransformationfundsin2022.ThesubsidyfundsforthisprojectmainlyrefertothesubsidiesprovidedforsanitarynapkinsonLine4andLine5.ThetotalamountoftheproductionlineunderconstructionisRMB4,094,200.00,whichhasnotbeentransferredtofixedassets.
52.Othernon-currentliabilities
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
Otherdescription:
53.Capitalstock
Unit:yuan
| Beginningbalance | Increase/decrease(+,-) | ClosingBalance | |||||
| Newissueofshares | Sharedonation | Sharecapitalincreasefromreservedfunds | Others | Subtotal | |||
| Totalamountofshares | 426,492,308.00 | 426,492,308.00 | |||||
Otherdescription:
54.Otherequityinstruments
(1)Basicinformationoftheoutstandingpreferredshares,perpetualbondsandotherfinancialinstrumentsattheendofthe
period
(2)Tableofchangesinoutstandingfinancialinstruments,suchaspreferredshares,perpetualbondsattheendoftheperiod
Unit:yuan
| Outstandingfinancialinstruments | Thebeginningoftheperiod | Increaseincurrentperiod | Decreaseincurrentperiod | Theendoftheperiod | ||||
| Quantity | Bookvalue | Quantity | Bookvalue | Quantity | Bookvalue | Quantity | Bookvalue | |
Theincreaseanddecreaseofotherequityinstrumentsincurrentperiod,thereasonsforthechange,andthebasisofrelevantaccountingtreatment:
Otherdescription:
55.Capitalreserve
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| Capitalpremium(capitalstockpremium) | 4,457,762,555.30 | 4,457,762,555.30 | ||
| Othercapitalsurplus | 91,858,541.51 | 3,373,485.57 | 88,485,055.94 | |
| Total | 4,549,621,096.81 | 3,373,485.57 | 4,546,247,611.24 |
Otherdescription,includingcurrentincrease/decreaseandchangereasons:
56.Treasurystock
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| Treasurystock | 257,992,366.68 | 242,090,367.43 | 500,082,734.11 | |
| Total | 257,992,366.68 | 242,090,367.43 | 500,082,734.11 |
Otherdescription,includingcurrentincrease/decreaseandchangereasons:
57.Othercomprehensiveincome
Unit:yuan
| Amountincurredincurrentperiod | ||||||||
| Item | Beginningbalance | Amountbeforecurrentincometax | Less:amountincludedinothercomprehensiveincomeinpreviousperiodtransferredintoprofitandlossincurrentperiod | Less:amountincludedinothercomprehensiveincomeinpreviousperiodtransferredintoretainedincomeincurrentperiod | Less:Incometaxexpenses | Attributabletotheparentcompanyaftertax | Attributabletominorityshareholdersaftertax | ClosingBalance |
| I.Othercomprehensiveincomethatcan'tbe | 601,000.00 | 601,000.00 | 601,000.00 | |||||
| reclassifiedintoprofitandloss | ||||||
| Including:Changesarisingfromre-measurementfordefinedbenefitplans | 601,000.00 | 601,000.00 | 601,000.00 | |||
| II.Othercomprehensiveincomethatwillbereclassifiedintoprofitandloss | (1,556,935.43) | 2,946,462.46 | 1,738,713.58 | 1,207,748.88 | 181,778.15 | |
| Balancearisingfromthetranslationofforeigncurrencyfinancialstatements | (1,556,935.43) | 2,946,462.46 | 1,738,713.58 | 1,207,748.88 | 181,778.15 | |
| Totalothercomprehensiveincome | (1,556,935.43) | 3,547,462.46 | 2,339,713.58 | 1,207,748.88 | 782,778.15 |
Otherexplanations,includingtheadjustmentoftheeffectivepartofthecashflowhedginggainsandlossestransferredtotheinitialrecognizedamountofthehedgeditem:
58.Specialreserve
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
Otherdescription,includingcurrentincrease/decreaseandchangereasons:
59.Surplusreserve
Unit:yuan
| Item | Beginningbalance | Increaseincurrentperiod | Decreaseincurrentperiod | ClosingBalance |
| Statutorysurplusreserves | 420,212,778.13 | 420,212,778.13 | ||
| Total | 420,212,778.13 | 420,212,778.13 |
Descriptionofsurplusreserves,includingcurrentincrease/decreaseandchangereasons:
60.Undistributedprofit
Unit:yuan
| Item | Currentperiod | Priorperiod |
| Undistributedprofitattheendofpreviousperiodbeforeadjustment | 5,538,135,285.97 | 5,126,630,011.14 |
| Totalundistributedprofitsatthebeginningoftheadjustmentperiod(+forincreaseand-fordecrease) | (60,128,638.03) | |
| Undistributedprofitsatthebeginningoftheperiodafteradjustment | 5,538,135,285.97 | 5,066,501,373.11 |
| Plus:Netprofitsattributabletotheownersofparentcompanyinthecurrentperiod | 1,650,582,427.43 | 1,239,320,067.26 |
| Commonstockdividendspayable | 377,763,884.10 | 767,686,154.40 |
| Undistributedprofitsattheendoftheperiod | 6,810,953,829.30 | 5,538,135,285.97 |
Detailsofundistributedprofitsatthebeginningoftheadjustmentperiod:
1)DuetoretroactiveadjustmentofAccountingStandardsforBusinessEnterprisesandrelevantnewregulations,RMB
0.00oftheundistributedprofitatthebeginningoftheperiodwasaffected.
2)Duetothechangeofaccountingpolicy,RMB0.00oftheundistributedprofitatthebeginningoftheperiodwasaffected.
3)Duetothecorrectionofmajoraccountingerrors,RMB0.00oftheundistributedprofitatthebeginningoftheperiod
wasaffected.
4)Duetothechangeofconsolidationscopecausedbythesamecontrol,RMB0.00oftheundistributedprofitatthe
beginningoftheperiodwasaffected.
5)RMB0.00oftheundistributedprofitatthebeginningoftheperiodwasaffectedbythetotalamountofotheradjustments
61.Revenueandcost
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 11,257,751,810.00 | 5,910,146,579.23 | 7,976,221,600.59 | 3,995,298,393.86 |
| Otherbusinesses | 93,579,735.08 | 62,654,238.06 | 61,199,212.32 | 32,948,252.31 |
| Total | 11,351,331,545.08 | 5,972,800,817.29 | 8,037,420,812.91 | 4,028,246,646.17 |
Whetherthenetprofitdeductingnon-recurringprofitandlossafterauditisnegative?Yes√NoIncomerelatedinformation:
Unit:yuan
| Contractclassification | Segment1 | Segment2 | Total | |
| Typeofgoods | ||||
| Including: | ||||
| Mainbusiness | 7,202,766,247.84 | 4,054,985,562.16 | 11,257,751,810.00 | |
| Otherbusinesses | 93,579,735.08 | 93,579,735.08 | ||
| Classifiedbyoperatingarea | ||||
| Including: | ||||
| Domesticsales | 5,989,724,998.43 | 4,054,985,562.16 | 10,044,710,560.59 | |
| Overseassales | 1,306,620,984.49 | 1,306,620,984.49 | ||
| Typeofmarketsorclients | ||||
| Including: |
| Typeofcontracts |
| Including: |
| Sortedbytimeofgoodstransfer |
| Including: |
| Sortedbycontractduration |
| Including: |
| Sortedbysaleschannels |
| Including: |
| Total |
Informationrelatedtoperformanceobligations:
NoneInformationrelatedtothetransactionpriceapportionedtotheremainingperformanceobligations:
TheamountofincomecorrespondingtotheperformanceobligationssignedbutnotyetperformedorcompletedattheendofthisreportingperiodisRMB0.00,ofwhichRMB0.00isexpectedtoberecognizedasrevenueintheyear,RMB0.00isexpectedtoberecognizedasrevenueinyear0,andRMB0.00isexpectedtoberecognizedasrevenueinyear0.Otherdescription:
62.Taxesandsurcharges
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Urbanmaintenanceandconstructiontax | 43,075,435.03 | 26,709,162.04 |
| Educationsurcharge | 19,248,049.13 | 12,172,848.90 |
| Housingpropertytax | 10,547,488.67 | 8,202,839.28 |
| Landusetax | 4,462,427.50 | 5,356,635.09 |
| Stampduty | 7,410,934.06 | 4,334,626.82 |
| Surchargeforlocaleducation | 12,835,042.86 | 8,372,544.74 |
| Vehicleandvesseltax | 16,933.03 | 15,402.27 |
| Environmentalprotectiontax | 490,930.04 | 140,942.02 |
| Others | 85,050.00 | |
| Total | 98,087,240.32 | 65,390,051.16 |
Otherdescription:
63.Sellingexpenses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Employeecompensation | 649,605,092.33 | 535,320,245.23 |
| Travelexpenses | 12,266,843.44 | 14,589,718.50 |
| Officecommunicationcosts | 17,665,180.74 | 12,577,824.48 |
| Salescommission | 213,988,639.15 | 222,716,753.83 |
| Insurancepremiums | 5,076,079.44 | 5,302,498.97 |
| Depreciationandamortization | 82,408,480.44 | 52,193,907.26 |
(continued)
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Advertisingandpromotionexpenses | 600,156,113.14 | 692,445,882.66 |
| Leaseandpropertymanagementexpenses | 152,186,000.56 | 152,728,211.40 |
| Materialconsumption | 29,027,854.76 | 5,212,855.45 |
| Water/electricityfee | 12,817,521.54 | 11,632,395.90 |
| Servicefees | 7,485,101.27 | 6,522,845.03 |
| DepreciationofRight-of-useassets | 188,658,565.69 | 191,875,674.76 |
| Others | 78,834,934.96 | 86,048,976.09 |
| Total | 2,050,176,407.46 | 1,989,167,789.56 |
Otherdescription:
64.Administrativeexpenses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Employeecompensation | 356,528,450.43 | 298,562,603.50 |
| Depreciationandamortizationcharge | 93,586,310.72 | 35,794,417.00 |
| Travelexpenses | 4,737,997.83 | 4,380,791.71 |
| Officeallowance | 3,066,482.44 | 4,475,089.91 |
| Consultantandintermediaryservicefees | 27,481,281.65 | 14,590,734.04 |
| Water/electricityfee | 11,445,522.43 | 9,396,543.04 |
| Communicationexpense | 39,836,787.42 | 18,015,557.80 |
| Maintenance,debuggingandmaterialconsumption | 35,254,976.30 | 30,955,528.79 |
| DepreciationofRight-of-useassets | 22,168,279.11 | 18,149,384.98 |
| Others | 39,508,546.62 | 20,069,298.13 |
| Total | 633,614,634.95 | 454,389,948.90 |
Otherdescription:
65.R&Dexpenses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Employeecompensation | 164,802,423.37 | 126,551,089.29 |
| Depreciationandamortization | 20,937,418.03 | 15,510,211.39 |
| Material | 232,395,899.93 | 119,134,692.81 |
| Othermiscellaneousexpenses | 69,447,910.78 | 36,966,372.67 |
| Total | 487,583,652.11 | 298,162,366.16 |
Otherdescription:
66.Financialexpenses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Interestexpenses | 50,043,346.95 | 29,988,617.24 |
| Including:Interestexpenseonleaseliabilities | 26,647,978.76 | 29,553,772.26 |
| Less:Interestrevenue | 123,909,561.75 | 137,186,581.16 |
| Financialdiscountinterest | 797,400.00 | |
| Exchangegainorloss | (52,070,721.48) | (607,837.15) |
| Others | 3,362,364.21 | 1,103,839.96 |
| Total | (122,574,572.07) | (107,499,361.11) |
Otherdescription:
67.Otherincomes
Unit:yuan
| Othersourcesofincome | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Governmentsubsidies | 84,373,262.34 | 102,353,195.81 |
68.Investmentincome
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Long-termequityinvestmentgainsmeasuredbyemployingtheequitymethod | 4,697,834.75 | 3,525,570.83 |
| Investmentincomefrompurchasingfinancialproducts | 30,114,666.09 | 15,019,953.42 |
| Investmentincomefromthedisposaloftradablefinancialassets | 16,658,266.32 | 84,692,023.73 |
| Total | 51,470,767.16 | 103,237,547.98 |
Otherdescription:
69.Netgainonexposurehedging
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Otherdescription:
70.Incomefromchangesinfairvalue
Unit:yuan
| Sourcesofgainsfromfairvaluechange | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Forwardforeignexchangesettlement | 6,334,756.86 | |
| Bankfinancialproductsandtrustproducts | 32,148,876.44 | 52,139,711.50 |
| Total | 32,148,876.44 | 58,474,468.36 |
Otherdescription:
71.CreditimpairmentLoss
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Lossonbaddebtsofotherreceivables | (68,889,588.55) | (3,968,251.81) |
| Lossonbaddebtsofaccountsreceivable | 4,946,266.03 | 3,394,251.24 |
| Total | (63,943,322.52) | (574,000.57) |
Otherdescription:
72.Assetsimpairmentlosses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| I.Lossonbaddebts | (854,203.50) | |
| II.Inventoryfallingpricelossandimpairmentlossofcontractperformancecosts | (331,806,543.64) | (92,740,339.23) |
| V.Impairmentlossoffixedassets | (19,343,113.09) | (7,924,893.69) |
| VI.Impairmentlossofconstructioninprogress | (10,865,480.00) | |
| Total | (362,869,340.23) | (100,665,232.92) |
Otherdescription:
73.Gainsfromassetdisposal
Unit:yuan
| Sourceofincomefromdisposalofassets | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Gainsfromdisposalofnon-currentassets | 4,466,739.85 | 3,275,886.08 |
| Including:Gainsondisposaloffixedassets | 150,442.48 | 28,225.52 |
| Gainsfromdisposalofright-of-useassets | 4,316,297.37 | 3,247,660.56 |
| Lossondisposalofnon-currentassets | (740,535.48) | (25,437.81) |
| Including:Lossondisposaloffixedassets | (740,535.48) | (25,437.81) |
| Total | 3,726,204.37 | 3,250,448.27 |
74.Non-operatingincome
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountsrecordedinthenon-recurringgainsandlossesofthecurrentperiod |
| Governmentsubsidies | 485,841.01 | 1,982,375.49 | 485,841.01 |
| Non-currentassetsscrapgains | 1,104,717.15 | 1,196,285.18 | 1,104,717.15 |
| Incomefromcompensationorfines | 2,923,432.97 | 1,348,234.56 | 2,923,432.97 |
| Others | 6,055,568.25 | 1,513,123.84 | 6,055,568.25 |
| Total | 10,569,559.38 | 6,040,019.07 | 10,569,559.38 |
Governmentsubsidiesrecordedincurrentprofitandloss
Unit:yuan
| Subsidizedproject | Grantingsubject | Grantingreason | Typeofnature | Whetherthesubsidyaffectstheprofitandlossofcurrentyear | Specialsubsidyornot | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Asset/incomerelated |
| Adjustmenttotheaccountofsubsidiesreceivedfortheresponsetopowersupplydemand-WinnerMedical(Wuhan) | Subsidy | No | No | 222,371.97 | Incomerelated | |||
| Fundsreceivableforpowersupplydemand | Subsidy | No | No | 113,756.23 | Incomerelated | |||
| Exemptionofvalue-addedtaxforretiredsoldiersandkeygroups-WinnerMedical(Wuhan) | Subsidy | No | No | 149,712.81 | Incomerelated | |||
| Exportearningsincentivefromgovernmentin2020-WinnerMedical(Chongyang) | Reward | No | No | 180,000.00 | Incomerelated | |||
| FinancialTaxContributionAwardforIndustrialEnterprises-WinnerMedical(Chongyang) | Reward | No | No | 600,000.00 | Incomerelated | |||
| ProceedsfromLonghuaDistrictQualityAwardin2020-WinnerMedical(shenzhen) | Reward | No | No | 1,000,000.00 | Incomerelated | |||
| RewardsfromtheMunicipalBureauofCommerceforopeninguppolicyofforeigntradeenterprises | Reward | No | No | 197,300.00 | Incomerelated | |||
| Others | No | No | 5,075.49 | Incomerelated | ||||
| Total | 485,841.01 | 1,982,375.49 |
Otherdescription:
75.Non-operatingexpenses
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountsrecordedinthenon-recurringgainsandlossesofthecurrentperiod |
| Externaldonations | 2,698,153.48 | 4,497,184.74 | 2,698,153.48 |
| Lossondamageandscrapofnon-currentassets | 44,824,142.16 | 13,527,120.74 | 44,824,142.16 |
| Overduefines | 5,587,691.07 | 5,587,691.07 | |
| Liquidateddamages | 11,433,314.10 | 11,433,314.10 | |
| Others | 3,069,974.82 | 895,001.31 | 3,069,974.82 |
| Total | 67,613,275.63 | 18,919,306.79 | 67,613,275.63 |
Otherdescription:
76.Incometaxexpenses
(1)Incometaxexpensetable
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Currentincometaxexpenses | 318,328,487.05 | 196,937,865.17 |
| Deferredincometaxexpenses | (72,523,142.67) | 21,378,341.19 |
| Adjustmentofthepreviousannualincometaxamountinthecurrentperiod | (503,799.50) | 6,999,437.58 |
| Total | 245,301,544.88 | 225,315,643.94 |
(2)Accountingprofitandincometaxexpenseadjustmentprocess
Unit:yuan
| Item | Amountincurredincurrentperiod |
| Totalprofit | 1,919,506,096.33 |
| Incometaxexpensescalculatedattheappropriate/applicabletaxrate | 287,925,914.45 |
| Impactofdifferenttaxratesappliedonsubsidiaries | (7,032.76) |
| Impactofincometaxbeforeadjustment | (503,799.50) |
| Impactofnon-deductiblecosts,expensesandlosses | 1,556,405.71 |
| ImpactofweighteddeductionofR&Dcosts | (50,382,980.12) |
| Impactoftemporarydifferenceordeductiblelossesonunrecognizeddeferredincometaxassetsinthecurrentperiod | 6,713,037.10 |
| Incometaxexpenses | 245,301,544.88 |
Otherdescription:
77.Othercomprehensiveincome
SeeNote57fordetails.
78.Cashflowstatementitems
(1)Othercashreceivedrelatedtooperatingactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Deposit,marginandqualityguaranteedepositreceived | 20,839,933.57 | 15,037,420.79 |
| Interestincomereceived | 29,396,223.39 | 42,673,242.80 |
| Governmentsubsidiesreceived | 74,022,751.98 | 119,837,112.25 |
| Others | 91,653,856.59 | 9,185,867.26 |
| Total | 215,912,765.53 | 186,733,643.10 |
Explanationonothercashreceivedrelatedtooperatingactivities:
(2)Othercashpaidrelatedtooperatingactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Managementanddevelopmentcostspaidincash | 214,977,555.82 | 124,259,182.05 |
| Sellingexpensespaidincash | 239,471,468.15 | 282,879,625.34 |
| Deposit,marginandqualityguaranteedepositpaid | 8,316,592.48 | 43,490,664.87 |
| Bankhandlingcharge | 3,348,042.45 | 1,103,839.96 |
| Others | 136,138,509.24 | 15,768,791.30 |
| Total | 602,252,168.14 | 467,502,103.52 |
Descriptionofothercashpaidrelatedtooperatingactivities
(3)Othercashreceivedrelatedtoinvestmentactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Descriptionofothercashreceivedrelatedtoinvestmentactivities:
(4)Othercashpaidrelatedtoinvestmentactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Descriptionofothercashpaidrelatedtoinvestmentactivities:
(5)Othercashreceivedrelatedtofinancingactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
Descriptionofothercashreceivedrelatedtofinancingactivities:
(6)Othercashpaidrelatedtofinancingactivities
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Principalandinterestpaidonleaseliabilities | 246,700,957.46 | 233,452,456.57 |
| Treasurystockrepurchasepaid | 242,090,367.43 | 257,992,366.68 |
| Depositpaidonbillsandlettersofcredit(forfinancingpurposes) | 119,430,633.87 | |
| Total | 608,221,958.76 | 491,444,823.25 |
Descriptionofothercashpaidrelatedtofinancingactivities:
79.Furtherinformationoncashflowstatement
(1)Furtherinformationoncashflowstatement
Unit:yuan
| Furtherinformation | Currentamount | Lasttermamount |
| 1.Reconciliationofnetprofitstocashflowsfromoperatingactivities: | ||
| Netprofit | 1,674,204,551.45 | 1,237,444,867.34 |
| Plus:Provisionforimpairmentofassets | 426,812,662.75 | 101,239,233.49 |
| Depreciationoffixedassets,oilandgasassetsandproductivebiologicalassets | 210,820,306.94 | 155,898,535.48 |
| DepreciationofRight-of-useassets | 215,248,882.88 | 210,025,059.74 |
| Amortizationofintangibleassets | 55,669,156.15 | 10,789,643.37 |
| Amortizationoflong-termdeferredexpenses | 73,413,333.87 | 55,654,548.57 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsexpressedwith“-”) | (3,726,204.37) | (3,250,448.27) |
| Lossonretirementoffixedassets(gainsexpressedwith“-”) | 43,719,425.01 | 12,330,835.56 |
| Lossfromfairvaluechange(gainsexpressedwith“-”) | (32,148,876.44) | (58,474,468.36) |
| Financialexpenses(gainsexpressedwith“-”) | (43,801,146.50) | (62,543,190.63) |
| Investmentlosses(gainsexpressedwith“-”) | (51,470,767.16) | (103,237,547.98) |
| Decreasedindeferredincometaxassets(increaseexpressedwith“-”) | (66,928,009.27) | 20,206,789.76 |
| Increaseindeferredincometaxliabilities(decreaseexpressedwith“-”) | (5,595,133.40) | 1,171,551.44 |
| Decreaseininventories(increaseexpressedwith“-”) | (73,528,720.88) | (473,630,443.01) |
| Decreaseinoperatingreceivables(increaseexpressedwith“-”) | 42,540,286.26 | (27,098,897.28) |
| Increaseinoperatingpayables(decreaseexpressedwith“-”) | 526,247,452.59 | (289,569,059.18) |
| Others | (8,004,969.61) | 84,732,891.89 |
| Netcashflowfromoperatingactivities | 2,983,472,230.27 | 871,689,901.93 |
| 2.Significantinvestmentandfinancingactivitiesnotinvolvingcashdepositandwithdrawal | ||
| Conversionofdebtintocapital | ||
| Convertiblebondsduewithin1year | ||
| Fixedassetsunderfinancinglease | ||
| 3.Netchangesincashandcashequivalents: | ||
| Endingbalanceofcash | 4,370,821,958.17 | 4,088,612,262.04 |
| Less:Beginningbalanceofcash | 4,088,612,262.04 | 4,149,734,694.38 |
| Plus:Endingbalanceofcashequivalents | ||
| Less:Endingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 282,209,696.13 | (61,122,432.34) |
(2)Netcashpaidforobtainingsubsidiariesincurrentperiod
Unit:yuan
| Amount | |
| Cashorcashequivalentspaidinthecurrentperiodforbusinesscombinationsoccurredincurrentperiod | 2,020,649,500.00 |
| Including: | |
| ZhejiangLongterm | 727,540,000.00 |
| WinnerGuilin | 428,000,000.00 |
| WinnerMedical(Hunan) | 751,921,500.00 |
| JunjianMedical | 113,188,000.00 |
| Less:CashandcashequivalentsheldbytheCompanyontheacquisitiondate | 343,576,791.44 |
| Including: | |
| ZhejiangLongterm | 57,779,546.35 |
| WinnerGuilin | 115,952,457.11 |
| WinnerMedical(Hunan) | 151,226,071.39 |
| JunjianMedical | 18,618,716.59 |
| Including: | |
| Netcashpaidforobtainingsubsidiaries | 1,677,072,708.56 |
Otherdescription:
(3)Netcashfromdisposalofsubsidiariesincurrentperiod
Unit:yuan
| Amount |
| Including: |
| Including: |
| Including: |
Otherdescription:
(4)Compositionofcashandcashequivalents
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| I.Cash | 4,370,821,958.17 | 4,088,612,262.04 |
| Including:cashonhand | 246,825.76 | 65,897.39 |
| Bankdepositreadilyavailableforpayment | 4,169,305,311.38 | 4,088,546,364.65 |
| Othermonetarycapitalreadilyavailableforpayment | 201,269,821.03 | |
| III.Balanceofcashandcashequivalentsatendofperiod | 4,370,821,958.17 | 4,088,612,262.04 |
Otherdescription:
80.Notestoitemsinstatementofowner'sequityStatethenameof“other”itemsandtheamountofadjustmenttotheendingbalanceofpreviousyear:
81.Assetswithownershiporuserightsrestricted
Unit:yuan
| Item | Endingbookvalue | Causesforrestriction | |
| Cashandcashequivalents | 156,055,620.73 | Marginandperformancedepositdepositedforhandlinginternationalanddomesticlettersofcredit | |
| Fixedassets | 189,752,483.28 | Seeotherdescriptionfordetails | |
| Intangibleassets | 24,467,616.10 | LargeplotofLongtermMedical,loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital | |
| Investmentrealestates | 4,766,112.61 | Buildings7-9#ofLongtermMedical,loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital | |
| Total | 375,041,832.72 |
Otherdescription:
Limitationonfixedassets:
| Item | Description | Endingbookvalue | Causesforrestriction |
| Fixedassets | WinnerMedical(Shenzhen) | 5,331,946.53 | Fordetails,pleaserefertoNote“XIII.OtherImportantMatters(IV)OtherImportantEventsthatAffectInvestors'Decisions2.UrbanRenewalProjectofWinnerIndustrialPark”. |
| Fixedassets | Buildings1-6#ofLongtermMedical | 53,941,694.00 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
| Fixedassets | Buildings7-9#ofLongtermMedical | 108,035,275.78 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
| Fixedassets | Room112,Building4,HuaceCenter | 2,613,051.98 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
| Fixedassets | Room101,Building6,HuaceCenter | 6,610,171.67 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
| Fixedassets | Room201,Building6,HuaceCenter | 6,610,171.67 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
| Fixedassets | Room301,Building6,HuaceCenter | 6,610,171.65 | Loanmortgage,dailyproductionandoperationneeds,supplementaryworkingcapital |
82.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:yuan
| Item | Endingbalanceinforeigncurrency | Conversionexchangerate | EndingbalanceconvertedtoRMB |
| Cashandcashequivalents | 362,335,309.79 | ||
| Including:USD | 47,015,178.11 | 6.9646 | 327,441,909.50 |
| EUR | 339,791.45 | 7.4229 | 2,522,237.95 |
| HKD | 36,133,593.19 | 0.8933 | 32,278,138.80 |
| Yen | 97,363.25 | 0.0524 | 5,101.83 |
| Ringgit | 55,745.44 | 1.5772 | 87,921.71 |
| Accountsreceivable | 21,239,373.14 | ||
| Including:USD | 2,328,075.19 | 6.9646 | 16,214,112.47 |
| EUR | |||
| HKD | 5,625,501.70 | 0.8933 | 5,025,260.67 |
| Long-termloans | |||
| Including:USD | |||
| EUR | |||
| HKD | |||
| Otherreceivables | 308,581.55 | ||
| Including:HKD | 345,440.00 | 0.8933 | 308,581.55 |
| Accountspayable | 8,200,980.93 | ||
| Including:HKD | 7,267,954.12 | 0.8933 | 6,492,463.42 |
| Ringgit | 1,083,259.90 | 1.5772 | 1,708,517.51 |
| Otherpayables | 6,675,894.22 | ||
| Including:USD | 84,457.12 | 6.9646 | 588,210.06 |
| HKD | 6,021,658.70 | 0.8933 | 5,379,147.72 |
| Ringgit | 449,236.90 | 1.5772 | 708,536.44 |
Otherdescription:
(2)Descriptionofoverseasoperatingentities,includingforimportantoverseasoperatingentities,themainoverseas
businessplace,recordingcurrencyandselectionbasisshallbedisclosed,andthereasonsforchangesinrecordingcurrencyshallalsobedisclosed.?Applicable√Notapplicable
83.Hedge
Disclosethequalitativeandquantitativeinformationofhedgingitems,relatedhedginginstrumentsandhedgedrisksaccordingtothehedgingcategory:
84.Governmentsubsidies
(1)Basicinformationofgovernmentsubsidies
Unit:yuan
| Type | Amount | Presenteditem | Amountrecordedincurrentprofitandloss |
| 1.Governmentsubsidiesrelatedtoassets | |||
| TechnicaltransformationprojectofkeymaterialproductionenterprisesforShenzhenpublichealtheventin2020-theCompany | 20,000,000.00 | Deferredincome | 2,000,000.00 |
| Annualequipmentinvestmentsubsidies(SpunlacePhaseIII,warehouseestablishment)-WinnerMedical(Tianmen) | 15,000,000.00 | Deferredincome | 375,000.00 |
| SubsidyforR&DprojectsinTechnologyCenter-theCompany | 12,420,000.00 | Deferredincome | 210,556.48 |
| Subsidyfundsforinfrastructureconstructionofmunicipalgovernmentprojects-WinnerMedical(Chongyang) | 12,406,500.00 | Deferredincome | 413,550.00 |
| Subsidyforproductionofmaterialsforpublichealtheventsin2020-WinnerMedical(Huanggang) | 11,400,000.00 | Deferredincome | 3,420,000.00 |
| ParkprojectconstructioninYuyueTown-WinnerMedical(Jiayu) | 9,880,000.00 | Deferredincome | 329,333.28 |
| Provincialsubsidyforpurchasingequipmentinkeyenterpriseof“ThreeBatches”-WinnerMedical(Huanggang) | 9,370,000.00 | Deferredincome | 2,522,692.27 |
| Specialfundsfortheprojectonimplementingthetechnicalreformationpolicyof“ZeroLand”inWuhanandthemunicipalindustrialinvestmentandtechnicaltransformationoftheBureauforScience,TechnologyandEconomicInformationTechnologyofXinzhouDistrict-WinnerMedical(Wuhan) | 8,000,000.00 | Deferredincome | 582,288.70 |
| Equipmentsubsidiesforpublichealtheventsin2021-WinnerMedical(Jingmen) | 6,800,000.00 | Deferredincome | 1,700,000.00 |
| Subsidyforpurchasingprotectiveequipmentinkeyenterprisesof“ThreeBatches”-WinnerMedical(Chongyang) | 5,590,000.00 | Deferredincome | 563,697.48 |
| TechnicalinnovationsubsidyforPhaseIIExpansionProjectofPurcotton-WinnerMedical(Jingmen) | 4,755,300.00 | Deferredincome | 166,366.20 |
| Technicaltransformationfundsforurbanareasin2022-WinnerMedical(Huanggang) | 4,094,200.00 | Deferredincome | |
| Subsidyforsurgicalgownproductionlineproject-WinnerMedical(Chongyang) | 4,000,000.00 | Deferredincome | 432,432.44 |
| Subsidyforcapacityexpansion&technicalupgradingofenterprisesproducingmaterialsforpublichealthevents-WinnerMedical(Wuhan) | 3,645,000.00 | Deferredincome | 591,720.31 |
| SubsidyforcompanyplanningchangeduetoHuanggangChibiAvenuedemolition-WinnerMedical(Huanggang) | 3,169,359.20 | Deferredincome | 105,645.31 |
| Specialfundsforthehigh-qualitydevelopmentofmanufacturingin2020-WinnerMedical(Huanggang) | 3,000,000.00 | Deferredincome | 336,448.60 |
| Subsidyforsecondbatchoftraditionalindustrytransformationin2017-WinnerMedical(Huanggang) | 1,900,000.00 | Deferredincome | 209,174.28 |
| Automatictransformationofsurgicalconsumablesproductionline-theCompany | 1,860,000.00 | Deferredincome | 186,000.00 |
| Receivedsubsidiesfromthedevelopmentoftheemergencymaterialsecuritysystemofcentralgovernmentforproductioncapacityimprovement-WinnerMedical(Wuhan) | 1,600,000.00 | Deferredincome | 74,309.77 |
| Technicaltransformationfundsforurbanareasin2021-WinnerMedical(Huanggang) | 1,520,000.00 | Deferredincome | 151,666.65 |
| SubsidyforscienceandtechnologysupportplanprojectsofHubeiin2014(thesecondbatch)-WinnerMedical(Huanggang) | 1,500,000.00 | Deferredincome | 150,000.00 |
| SpecialsubsidyofMunicipalBureauofEconomyandInformationTechnologyfortheissuanceoftechnicaltransformationonemergencymaterialsupportsystemconstruction-WinnerMedical(Huanggang) | 1,440,000.00 | Deferredincome | 438,269.20 |
| Specialfundsforprovincialtraditionalindustrytransformationandupgrading-thefirstbatchofblockfundsallocationplaninTianmenin2019-WinnerMedical(Tianmen) | 1,320,000.00 | Deferredincome | 136,551.72 |
| Firstbatchoftraditionalsubsidiesin2019-WinnerMedical(Huanggang) | 1,210,000.00 | Deferredincome | 121,000.00 |
| 20180311Subsidiesforresearch,scienceandinnovationonthetechnologyofthermo-responsiveself-curingwoundregenerationandrepairmaterials-theCompany | 1,200,000.00 | Deferredincome | 239,811.33 |
| Keytechnicaltransformationandexpansionprojects(cottonspunlacedwipesproductionlineproject)-WinnerMedical(Tianmen) | 1,000,000.00 | Deferredincome | 108,108.00 |
| Subsidiesforfirstbatchoftechnologicaltransformationawardofindustrialenterprisesin2018-WinnerMedical(Chongyang) | 1,000,000.00 | Deferredincome | 106,157.11 |
| 2020Provincialspecialfundsforthehigh-qualitydevelopmentofmanufacturing-WinnerMedical(Jiayu) | 1,000,000.00 | Deferredincome | 105,263.16 |
| 1millionprovincialspecialfundsforthedevelopmentofmanufacturing-WinnerMedical(Wuhan) | 1,000,000.00 | Deferredincome | 125,460.48 |
| Productionlineprojectwithanannualoutputof120millionbalesofcottonwipesin2017-WinnerMedical(Tianmen) | 930,000.00 | Deferredincome | 107,307.72 |
| Others | 13,497,883.36 | Deferredincome | 1,264,322.88 |
| Subtotal: | 165,508,242.56 | 17,273,133.37 | |
| 2.Governmentsubsidiesrelatedtoincome | |||
| Preferentialtaxrebatesforkeygroupsin2019-2021-WinnerMedical(Huanggang) | 8,516,900.00 | Otherincomes | 8,516,900.00 |
| Employmentofkeygroupsforoffsetofvalue-addedtax-WinnerMedical(Chongyang) | 3,542,750.00 | Otherincomes | 3,542,750.00 |
| ConstructionfundsforIndustrialInternetAnalysisMedicalSuppliesIndustrysupportedbyGuangdongCommunicationsAdministration-theCompany | 3,000,000.00 | Otherincomes | 3,000,000.00 |
| IndustrialInternetdevelopmentsupportplanin2022-ShenzhenPurcotton | 3,000,000.00 | Otherincomes | 3,000,000.00 |
| Taxrefundforemploymentofkeygroupsin2019-2022-WinnerMedical(Jiayu) | 2,979,600.00 | Otherincomes | 2,979,600.00 |
| TechnologyInnovationAward-theCompany | 429,537.00 | Otherincomes | 429,537.00 |
| RewardissuedbyIndustryandInformationTechnologyBureauofShenzhenMunicipalityforsinglechampioninmanufacturingindustry-theCompany | 2,000,000.00 | Otherincomes | 2,000,000.00 |
| SubsidyissuedbyIndustryandInformationTechnologyBureauofLonghuaDistrictforenterprisewithindustrialgrowth-theCompany | 2,000,000.00 | Otherincomes | 2,000,000.00 |
| SubsidyissuedbyIndustryandInformationTechnologyBureauofLonghuaDistrictforenterprisewithsteadyindustrialgrowthinthreequarters-theCompany | 2,000,000.00 | Otherincomes | 2,000,000.00 |
| Supportplanfordoublepromotionprojectofqualitybrand-ShenzhenPurcotton | 1,800,000.00 | Otherincomes | 1,800,000.00 |
| SubsidybyCommerceBureauofShenzhenMunicipalityforapremiumfromJan.toJun.in2021-theCompany | 1,540,000.00 | Otherincomes | 1,540,000.00 |
| Exportcreditinsurancesubsidy-theCompany | 1,259,029.00 | Otherincomes | 1,259,029.00 |
| AwardforstableindustrialgrowthofLonghuaDistrictin2021-ShenzhenPurcotton | 1,192,300.00 | Otherincomes | 1,192,300.00 |
| AdjustmentoftaxreductionandexemptionforkeygroupsfromJulytoNovember2022-theCompany | 1,084,900.00 | Otherincomes | 1,084,900.00 |
| SubsidyissuedbyIndustryandInformationTechnologyBureauofLonghuaDistrictforcross-borderlogisticssupport-theCompany | 1,000,000.00 | Otherincomes | 1,000,000.00 |
| Governmentsubsidies-WinnerMedical(Chongyang) | 800,000.00 | Otherincomes | 800,000.00 |
| SpecialfundingforscienceandtechnologyprotectionofShenzhenInstituteofAdvancedTechnology-theCompany | 750,000.00 | Otherincomes | 750,000.00 |
| Cottonfreightsubsidy-WinnerMedical(Huanggang) | 675,700.00 | Otherincomes | 675,700.00 |
| Cottonfreightsubsidyreceivedin2019 | 675,700.00 | Otherincomes | 675,700.00 |
| Firstbatchofone-timeemploymenttrainingsubsidiesin2022-ShenzhenPurcotton | 652,875.00 | Otherincomes | 652,875.00 |
| SubsidyissuedbyIndustryandInformationTechnologyBureauofLonghuaDistrictforstablegrowthofforeigntradein2021-theCompany | 639,300.00 | Otherincomes | 639,300.00 |
| Socialsecuritysubsidiesforthepeoplewithemploymentdifficultyintheenterprise-WinnerMedical(Chongyang) | 602,114.00 | Otherincomes | 602,114.00 |
| Specialfundforscientificandtechnologicalinnovationin2022-theWinnerMedical(Chongyang) | 500,000.00 | Otherincomes | 500,000.00 |
| Others | 26,945,264.98 | Otherincome/Non-operatingincome | 26,945,264.98 |
| Subtotal: | 67,585,969.98 | 67,585,969.98 | |
| Total | 233,094,212.54 | 84,859,103.35 |
(2)Returnofgovernmentsubsidies?Applicable√NotapplicableOtherdescription:
85.Others
VIII.Consolidationscopechanges
1.Businesscombinationnotundercommoncontrol
(1)Businesscombinationnotundercommoncontroloccurredincurrentperiod
Unit:yuan
| Nameoftheacquiree | Timeofequityacquisition | Costofequityacquisition | Equityacquisitionratio | Methodofequityacquisition | Acquisitiondate | Basisfordeterminationofacquisitiondate | Incomeoftheacquireefromtheacquisitiondatetotheendoftheperiod | Netprofitoftheacquireefromtheacquisitiondatetotheendoftheperiod |
| LongtermMedical | April30,2022 | 727,540,000.00 | 55.00% | Shareacquisition | April30,2022 | Acquisitionofcontrol | 326,797,009.07 | 70,390,069.32 |
| WinnerGuilin | June30,2022 | 450,000,000.00 | 100.00% | Shareacquisition | June30,2022 | Acquisitionofcontrol | 239,586,252.85 | 44,729,822.83 |
| WinnerMedical(Hunan) | July1,2022 | 751,921,500.00 | 68.70% | Shareacquisition | July1,2022 | Acquisitionofcontrol | 146,250,227.37 | 17,913,174.25 |
| JunjianMedical | October31,2022 | 192,000,000.00 | 100.00% | Shareacquisition | October31,2022 | Acquisitionofcontrol | 106,185,026.80 | 1,115,057.88 |
Otherdescription:
[Note1]AccordingtotheresolutionoftheboardofdirectorsoftheCompany,undertheEquityTransferAgreementConcerningZhejiangLongtermMedicalTechnologyCo.,Ltd.signedonApril8,2022betweentheCompanyandnaturalpersonshareholderssuchasWuKangping,HuangLepei,andWuDi.TheCompanyacquired55.00%equityofZhejiangLongtermheldbytheabove-mentionednaturalpersonshareholdersatapriceofRMB727.54million.ZhejiangLongtermhascompletedtheregistrationproceduresofindustrialandcommercialchangeonMay10,2022,andthedispatcheddirectorsoftheCompanyhaveaccountedforthemajorityinthenewboardofdirectors.Forconvenienceofaccounting,thepurchasedatehasbeendeterminedasApril30,2022,itwillbeincludedinthescopeofconsolidatedfinancialstatementsfromApril30,2022.[Note2]AccordingtotheresolutionoftheboardofdirectorsoftheCompany,undertheState-ownedPropertyRightsTransferContractsignedbyandbetweentheCompanyandChinaResourcesZizhuPharmaceuticalCo.,Ltd.onJune6,2022,theCompanyacquired100.00%equityofWinnerGuilinheldbyChinaResourcesZizhuPharmaceuticalCo.,Ltd.atapriceofRMB450million.WinnerGuilinhascompletedtheregistrationproceduresofindustrialandcommercialchangeonJune27,2022,andthedispatcheddirectorsoftheCompanyhaveaccountedforthemajorityinthenewboardofdirectors.Forconvenienceofaccounting,thepurchasedatehasbeendeterminedasJune30,2022,itwillbeincludedinthescopeofconsolidatedfinancialstatementsfromJune30,2022.[Note3]AccordingtotheresolutionoftheboardofdirectorsoftheCompany,undertheInvestmentAgreementConcerningWinnerMedical(Hunan)Co.,Ltd.signedonMay18,2022betweentheCompanyand17naturalpersonshareholderssuchasZhengDatian,ChenSanju,andZhengDarong,etc.TheCompanyacquired68.70%equityofZhejiangLongtermheldbytheabove-mentionednaturalpersonshareholdersatapriceofRMB751,921,500.WinnerMedical(Hunan)hascompletedtheregistrationproceduresofindustrialandcommercialchangeonJuly4,2022,andthedispatcheddirectorsoftheCompanyhaveaccountedforthemajorityinthenewboardofdirectors.Forconvenienceofaccounting,thepurchasedatehasbeendeterminedasJuly1,2022,itwillbeincludedinthescopeofconsolidatedfinancialstatementsfromJuly1,2022.[Note4]AccordingtotheresolutionoftheInvestmentCommitteeoftheCompany,theCompanysignedtheEquityTransferAgreementConcerningShenzhenJunjianMedicalDeviceCo.,Ltd.withnaturalpersonshareholderssuchasZhengJunhuiandSunDonglingonSeptember21,2022.TheCompanyacquired100.00%equityofJunjianMedicalheldbytheabovenaturalpersonshareholdersatapriceofRMB192million.JunjianMedicalhascompletedtheregistrationproceduresofindustrialandcommercialchangeonNovember9,2022,andthedispatcheddirectorsoftheCompanyhaveaccountedforthemajorityinthenewboardofdirectors.Forconvenienceofaccounting,thepurchasedatehasbeendeterminedasOctober31,2022,itwillbeincludedinthescopeofconsolidatedfinancialstatementsfromOctober31,2022.
(2)Combinationcostandgoodwill
Unit:yuan
| Combinationcost | LongtermMedical | WinnerGuilin | WinnerMedical(Hunan) | JunjianMedical |
| -Cash | 727,540,000.00 | 450,000,000.00 | 751,921,500.00 | 192,000,000.00 |
| -Fairvalueofnon-cashassets | ||||
| -Fairvalueofdebtissuedorassumed | ||||
| -Fairvalueofequitysecuritiesissued | ||||
| -Fairvalueofcontingentconsideration | ||||
| -Fairvalueoftheequityheldpriortothepurchasedateonthepurchasedate | ||||
| -Others | ||||
| Totalcombinationcost | 727,540,000.00 | 450,000,000.00 | 751,921,500.00 | 192,000,000.00 |
| Less:theshareofthefairvalueofidentifiablenetassetsacquired | 337,067,021.33 | 205,185,395.25 | 362,932,241.74 | 171,602,027.67 |
| Theamountofgoodwill/combinationcostlessthantheshareofthefairvalueofidentifiablenetassetsacquired | 390,472,978.67 | 244,814,604.75 | 388,989,258.26 | 20,397,972.33 |
Determinationmethodoffairvalueofcombinationcost,contingentconsiderationandexplanationofitschanges:
Mainreasonsfortheformationoflargeamountofgoodwill:
TheCompanyacquired55.00%equityofZhejiangLongtermMedicalTechnologyCo.,Ltd.withamergecostofRMB727,540,000.00.Onthepurchasedate,theCompanyobtainedtheidentifiablenetassetsofZhejiangLongtermMedicalTechnologyCo.,Ltd.withthefairvalueofRMB337,067,021.33,andthedifferencebetweenthemergecostandthefairvalueoftheidentifiablenetassetsobtainedinthemergerofRMB390,472,978.67wasrecognizedasgoodwill.TheCompanyacquired100.00%equityofWinnerGuilinLatexCo.,Ltd.withamergecostofRMB450,000,000.00.Onthepurchasedate,theCompanyobtainedtheidentifiablenetassetsofWinnerGuilinLatexCo.,Ltd.withthefairvalueofRMB205,185,395.25,andthedifferencebetweenthemergecostandthefairvalueoftheidentifiablenetassetsobtainedinthemergerofRMB244,814,604.75wasrecognizedasgoodwill.TheCompanyacquired68.70%equityofWinnerMedical(Hunan)Co.,Ltd.withamergecostofRMB751,921,500.00(includingthesubsequentcapitalincreaseofRMB100,000,000.00fromtheCompanytoWinnerMedical(Hunan)).Onthepurchasedate,theCompanyobtainedtheidentifiablenetassetsofWinnerMedical(Hunan)Co.,Ltd.withthefairvalueofRMB362,932,241.74,andthedifferencebetweenthemergecostandthefairvalueoftheidentifiablenetassetsobtainedinthemergerofRMB388,989,258.26wasrecognizedasgoodwill.TheCompanyacquired100.00%equityofShenzhenJunjianMedicalDeviceCo.,Ltd.withamergecostofRMB192,000,000.00.Onthepurchasedate,theCompanyobtainedtheidentifiablenetassetsofShenzhenJunjianMedicalDeviceCo.,Ltd.withthefairvalueofRMB171,602,027.67,andthedifferencebetweenthemergecostandthefairvalueoftheidentifiablenetassetsobtainedinthemergerofRMB20,397,972.33wasrecognizedasgoodwill.Otherdescription:
(3)Identifiableassetsandliabilitiesoftheacquireeontheacquisitiondate
Unit:yuan
| LongtermMedical | WinnerGuilin | WinnerMedical(Hunan) | JunjianMedical | |||||
| Fairvalueontheacquisitiondate | Bookvalueontheacquisitiondate | Fairvalueontheacquisitiondate | Bookvalueontheacquisitiondate | Fairvalueontheacquisitiondate | Bookvalueontheacquisitiondate | Fairvalueontheacquisitiondate | Bookvalueontheacquisitiondate | |
| Assets: | 1,000,298,050.32 | 691,666,426.62 | 372,637,805.64 | 289,256,819.04 | 657,585,136.05 | 359,382,318.51 | 312,574,809.18 | 180,558,119.61 |
| Cashandcashequivalents | 68,842,612.15 | 68,842,612.15 | 115,952,457.11 | 115,952,457.11 | 151,226,071.39 | 51,226,071.39 | 18,618,716.59 | 18,618,716.59 |
| Accountsreceivablepayments | 69,693,735.14 | 69,693,735.14 | 21,441,959.97 | 9,223,748.32 | 78,230,459.99 | 78,230,459.99 | 148,735,230.51 | 148,735,230.51 |
| Inventory | 83,199,252.80 | 76,423,001.15 | 71,013,902.10 | 71,013,902.10 | 48,626,681.19 | 40,173,488.66 | 16,984,516.05 | 9,377,826.48 |
| Fixedassets | 341,623,696.45 | 332,233,721.18 | 54,189,422.59 | 34,935,720.80 | 207,435,300.00 | 125,452,751.98 | ||
| Intangibleassets | 343,093,441.26 | 50,265,445.00 | 95,143,604.43 | 43,234,531.27 | 113,174,121.00 | 9,506,811.77 | 124,479,182.37 | 69,182.37 |
| Notesreceivable | 2,889,158.27 | 2,889,158.27 | 29,676,053.92 | 29,676,053.92 | ||||
| Amountsreceivablefinancing | 1,474,263.14 | 1,474,263.14 | 12,285,561.16 | 12,285,561.16 | ||||
| Advancestosuppliers | 19,708,978.59 | 19,708,978.59 | 4,499,004.10 | 4,499,004.10 | 6,253,493.21 | 6,253,493.21 | 810,851.95 | 810,851.95 |
| Otherreceivables | 32,632,189.13 | 32,632,189.13 | 8,399,520.84 | 8,399,520.84 | 3,909,030.06 | 3,909,030.06 | 601,078.43 | 601,078.43 |
| Othercurrentassets | 279,892.16 | 279,892.16 | 19,340.02 | 19,340.02 | ||||
| Investmentrealestates | 4,629,650.00 | 529,882.24 | ||||||
| Constructioninprogress | 32,090,599.60 | 32,090,599.60 | 477,876.15 | 477,876.15 | ||||
| Right-of-useassets | 611,208.27 | 611,208.27 | 262,617.20 | 262,617.20 | ||||
| Long-termunamortizedexpenses | 2,531,712.36 | 2,894,311.84 | ||||||
| Deferredincometaxassets | 3,101,574.14 | 3,101,574.14 | 523,671.36 | 523,671.36 | 1,660,837.98 | 1,660,837.98 | 2,063,276.06 | 2,063,276.06 |
| Debt: | 387,448,920.63 | 341,154,177.07 | 167,452,410.39 | 154,945,262.40 | 129,299,485.77 | 99,569,063.14 | 140,972,781.51 | 107,968,609.12 |
| Loan | 176,996,912.90 | 176,996,912.90 | ||||||
| Accountpayablepayments | 123,161,542.32 | 123,161,542.32 | 86,907,769.43 | 86,907,769.43 | 87,426,528.12 | 87,426,528.12 | 85,936,761.96 | 85,936,761.96 |
| Deferredincometaxliabilities | 46,294,743.56 | 14,305,888.65 | 1,798,740.66 | 32,330,271.93 | 2,599,849.30 | 33,004,172.39 | ||
| Contractliabilities | 16,984,188.90 | 16,984,188.90 | 48,572,857.70 | 48,572,857.70 | 2,180,254.92 | 2,180,254.92 | 2,713,664.69 | 2,713,664.69 |
| Taxespayable | 22,177,789.84 | 22,177,789.84 | 10,975,404.29 | 10,975,404.29 | 7,193,459.28 | 7,193,459.28 | 18,754,362.48 | 18,754,362.48 |
| Non-currentliabilitiesduewithinoneyear | 155,245.72 | 155,245.72 | 373,656.36 | 373,656.36 | 265,877.16 | 265,877.16 | ||
| Othercurrentliabilities | 1,678,497.39 | 1,678,497.39 | 6,314,471.50 | 6,314,471.50 | 168,971.52 | 168,971.52 | 297,942.83 | 297,942.83 |
| Deferredincome | 2,362.46 | 2,362.46 | ||||||
| Netassets | 612,849,129.69 | 350,512,249.55 | 205,185,395.25 | 134,311,556.64 | 528,285,650.28 | 259,813,255.37 | 171,602,027.67 | 72,589,510.49 |
| Less:Minorityequity | 275,782,108.36 | 157,730,512.30 | 165,353,408.54 | 81,321,548.93 | ||||
| Netassetsacquired | 337,067,021.33 | 192,781,737.25 | 205,185,395.25 | 134,311,556.64 | 362,932,241.74 | 178,491,706.44 | 171,602,027.67 | 72,589,510.49 |
Fairvaluedeterminationmethodofidentifiableassetsandliabilities:
TheacquisitiontargetZhejiangLongtermMedicalTechnologyCo.,Ltd.hasbeenappraisedbyShenzhenPengxinAssetAppraisalandLand&RealEstateAppraisalCo.,Ltd.withanissuanceoftheAppraisalReportontheFairValueofIdentifiableAssetsandLiabilitiesofZhejiangLongtermMedicalTechnologyCo.,Ltd.RelatedtothePurposeofFinancialReportingofWinnerMedicalCo.,Ltd.(P.X.Z.P.B.[2023]No.S016)andtheappraisalbenchmarkdateofApril30,2022.Accordingtotheappraisalreport,consideringtheimpactofdeferredincometaxandtheimpactofthecapitalincrease,thefairvalueoftheidentifiablenetassetsoftheacquired100%equityofZhejiangLongtermMedicalTechnologyCo.,Ltd.isRMB612849129.69.TheacquisitiontargetWinnerGuilinLatexCo.,Ltd.hasbeenappraisedbyYinxinAppraisalCo.,Ltd.withanissuanceoftheAssetsAppraisalReportontheMarketValueItemsofVariousIdentifiableAssets,LiabilitiesandContingentLiabilitiesofWinnerGuilinLatexCo.,Ltd.RelatedtotheProposedMergerConsiderationAllocationofWinnerMedicalCo.,Ltd.(Y.X.P.B.Zi[2023]No.D00025),andtheappraisalbenchmarkdateofJune30,2022.Accordingtotheappraisalreport,consideringtheimpactofdeferredincometaxandtheimpactofthecapitalincrease,thefairvalueoftheidentifiablenetassetsoftheacquired100%equityofWinnerGuilinLatexCo.,Ltd.isRMB205,185,395.25.TheacquisitiontargetWinnerMedical(Hunan)Co.,Ltd.hasbeenappraisedbyYinxinAppraisalCo.,Ltd.withanissuanceoftheAssetsAppraisalReportontheMarketValueItemsofVariousIdentifiableAssets,LiabilitiesandContingentLiabilitiesofWinnerMedical(Hunan)Co.,Ltd.RelatedtotheProposedMergerConsiderationAllocationofWinnerMedicalCo.,Ltd.(Y.X.P.B.Zi[2023]No.D00026),andtheappraisalbenchmarkdateofJune30,2022.Accordingtotheappraisalreport,consideringtheimpactofdeferredincometaxandtheimpactofthecapitalincrease,thefairvalueoftheidentifiablenetassetsoftheacquired100%equityofWinnerMedical(Hunan)Co.,Ltd.isRMB428,285,650.28.TheacquisitiontargetShenzhenJunjianMedicalDeviceCo.,Ltd.hasbeenappraisedbyYinxinAppraisalCo.,Ltd.withanissuanceoftheAssetsAppraisalReportontheMarketValueItemsofVariousIdentifiableAssets,LiabilitiesandContingentLiabilitiesofShenzhenJunjianMedicalDeviceCo.,Ltd.RelatedtotheProposedMergerConsiderationAllocationofWinnerMedicalCo.,Ltd.(Y.X.P.B.Zi[2023]No.D00027),andtheappraisalbenchmarkdateofOctober31,2022.Accordingtotheappraisalreport,consideringtheimpactofdeferredincometaxandtheimpactofthecapitalincrease,thefairvalueoftheidentifiablenetassetsoftheacquired100%equityofShenzhenJunjianMedicalDeviceCo.,Ltd.isRMB171,602,027.67.ContingentliabilitiesoftheacquireeincurredinbusinesscombinationOtherdescription:
(4)GainsorlossesarisingfromremeasurementofequityheldpriortotheacquisitiondateatfairvalueWhethertherearetransactionsthatrealizethebusinesscombinationstepbystepthroughmultipletransactionsandobtaincontrolrightduringthereportingperiod?Yes√No
(5)Relevantdescriptionofthecombinationconsiderationorthefairvalueoftheidentifiableassetsandliabilitiesofthe
acquireethatcannotbereasonablydeterminedontheacquisitiondateorattheendofcurrentperiodofthecombinationNotapplicable.
(6)OtherdescriptionNA
2.Businesscombinationundercommoncontrol
(1)Businesscombinationundercommoncontroloccurredincurrentperiod
Unit:yuan
| Nameofmergedparty | Proportionofequityobtainedinbusinesscombination | Basisofbusinesscombinationundercommoncontrol | Mergerdate | Basisfordeterminationofmergerdate | Incomeofthecombinedpartyfromthebeginningofcurrentperiodtothedateofcombination | Netprofitofthecombinedpartyfromthebeginningofcurrentperiodtothedateofcombination | Incomeofthecombinedpartyduringthecomparisonperiod | Netprofitofthecombinedpartyduringthecomparisonperiod |
Otherdescription:N/A.
(2)Combinationcost
Unit:yuan
| Combinationcost |
| --Cash |
| --Bookvalueofnon-cashassets |
| --Bookvalueofdebtissuedorassumed |
| --Bookvalueofequitysecuritiesissued |
| --Contingentconsideration |
Contingentconsiderationandexplanationofitschanges:N/AOtherdescription:
(3)Bookvalueofassetsandliabilitiesofthecombinedpartyonthedateofcombination
Unit:yuan
| Mergerdate | Endofpreviousperiod | |
| Assets: | ||
| Cashandcashequivalents | ||
| Accountsreceivablepayments | ||
| Inventory | ||
| Fixedassets | ||
| Intangibleassets | ||
| Debt: | ||
| Loan | ||
| Accountpayablepayments | ||
| Netassets | ||
| Less:Minorityequity | ||
| Netassetsacquired |
ContingentliabilitiesofthecombinedpartyincurredinbusinesscombinationOtherdescription:
3.Reversepurchase
Basicinformationoftransaction,basisoftransactionformingreversepurchase,whethertheassetsandliabilitiesretainedbythelistedcompanyconstitutebusinessandtheirbasis,determinationofcombinationcost,amountandcalculationofadjustedequityinaccordancewithequitytransaction:
4.DisposalofsubsidiaryWhetherthereisasingledisposalofinvestmentinsubsidiaries,i.e.lossofcontrolright?Yes√NoWhetherthereisasituationthattheinvestmentinsubsidiariesisdisposedstepbystepthroughmultipletransactionsandthecontrolrightislostincurrentperiod?Yes√No
5.ChangeofmergerscopeforotherreasonsExplainthechangesinthescopeofcombinationcausedbyotherreasons(suchastheestablishmentofnewsubsidiaries,liquidationofsubsidiaries,etc.)andrelevantinformation:
TheCompanycancelsPureHB(Shanghai)inthecurrentperiod.
6.OthersNoneIX.Interestsinotherentities
1.Interestsinasubsidiary
(1)Compositionofenterprisegroup
| Subsidiaryname | Mainoperationsite | Registrationplace | Businessnature | Shareholdingratio | Wayofobtaining | |
| Direct | Indirect | |||||
| ShenzhenPurcotton | ShenzhenCity,GuangdongProvince | ShenzhenCity,GuangdongProvince | SaleofPurcottonproducts | 100.00% | Establishment | |
| BeijingPurcotton | Beijing | Beijing | SaleofPurcottonproducts | 100.00% | Establishment | |
| GuangzhouPurcotton | GuangzhouCity,GuangdongProvince | GuangzhouCity,GuangdongProvince | SaleofPurcottonproducts | 100.00% | Establishment | |
| ShanghaiPurcotton | Shanghai | Shanghai | SaleofPurcottonproducts | 100.00% | Establishment | |
(continued)
| Subsidiaryname | Mainoperationsite | Registrationplace | Businessnature | Shareholdingratio | Wayofobtaining | |
| Direct | Indirect | |||||
| QianhaiPurcotton | ShenzhenCity,GuangdongProvince | ShenzhenCity,GuangdongProvince | SaleofPurcottonproducts | 100.00% | Establishment | |
| WinnerMedical(Huanggang) | HuanggangCity,HubeiProvince | HuanggangCity,HubeiProvince | Productionandsalesofcottonspunlacednon-wovenfabric,medicalconsumablesandPurcottonproducts | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(Jingmen) | JingmenCity,HubeiProvince | JingmenCity,HubeiProvince | ProductionandsalesofmedicalconsumablesandPurcottonproducts | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(Chongyang) | ChongyangCounty,HubeiProvince | ChongyangCounty,HubeiProvince | Productionandsalesofmedicalconsumables | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(Jiayu) | JiayuCounty,HubeiProvince | JiayuCounty,HubeiProvince | ProductionandsalesofmedicalconsumablesandPurcottonproducts | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(Yichang) | ZhijiangCity,HubeiProvince | ZhijiangCity,HubeiProvince | Productionandsalesofmedicalgraycloth | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(Tianmen) | TianmenCity,HubeiProvince | TianmenCity,HubeiProvince | Productionandsalesofcottonspunlacednon-wovenfabricandPurcottonproducts | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedical(HongKong) | HongKong | HongKong | Salesofmedicalconsumablesandhealthylivingconsumergoods | 60.00% | Businesscombinationundercommoncontrol | |
| Winner(Huanggang)Cotton | HuanggangCity,HubeiProvince | HuanggangCity,HubeiProvince | Cottontrade | 100.00% | Businesscombinationundercommoncontrol | |
| WinnerMedicalMalaysia | Malaysia | Malaysia | Thereisnoactualbusinessoperation | 100.00% | Businesscombinationnotundercommoncontrol | |
| WinnerMedical(Heyuan) | HeyuanCity,GuangdongProvince | HeyuanCity,GuangdongProvince | Thereisnoactualbusinessoperationatpresent | 100.00% | Establishment | |
| WinnerMedical(Wuhan) | WuhanCity,HubeiProvince | WuhanCity,HubeiProvince | Productionandsterilizationofcottonspunlacednon-wovenfabricandPurcottonproducts | 100.00% | Establishment | |
| PureH2B | ShenzhenCity,GuangdongProvince | ShenzhenCity,GuangdongProvince | Salesofpersonalcareandotherproducts | 100.00% | Establishment | |
| PureHB(Shanghai)1* | Shanghai | Shanghai | Importanddomesticsalesofcosmetics | 100.00% | Establishment | |
| Purunderwear | ShenzhenCity,Guangdong | ShenzhenCity,Guangdong | SalesofCottonLiningproducts | 100.00% | Establishment | |
| Province | Province | ||||||||
| HuanggangPurcotton | HuanggangCity,HubeiProvince | HuanggangCity,HubeiProvince | SaleofPurcottonproducts | 100.00% | Establishment | ||||
| WinnerMedical(Foshan) | FoshanCity,GuangdongProvince | FoshanCity,GuangdongProvince | Thereisnoactualbusinessoperationatpresent | 100.00% | Establishment | ||||
| HangzhouShengyi | Hangzhou,Zhejiang | Hangzhou,Zhejiang | Othertechnologypromotionservices | 55.00% | Businesscombinationnotundercommoncontrol | ||||
| Xi'anLongTemu | Xi'an,Shaanxi | Xi'an,Shaanxi | Engineeringtechnicalresearchandexperimentaldevelopment | 55.00% | Businesscombinationnotundercommoncontrol | ||||
| DeqingLongterm | Huzhou,Zhejiang | Huzhou,Zhejiang | Manufacturingofmedicalinstruments,equipmentanddevice | 55.00% | Businesscombinationnotundercommoncontrol | ||||
| UnitedStatesLongterm | US | US | Manufacturingofmedicalinstruments,equipmentanddevice | 55.00% | Businesscombinationnotundercommoncontrol | ||||
| WinnerGuilin | XiufengDistrict,GuilinCity,GuangxiZhuangAutonomousRegion | XiufengDistrict,GuilinCity,GuangxiZhuangAutonomousRegion | Rubberproductsindustry | 100.00% | Businesscombinationnotundercommoncontrol | ||||
| WinnerMedical(Hunan) | Changde,Hunan | Changde,Hunan | Productionandsalesofmedicalconsumables | 68.70% | Businesscombinationnotundercommoncontrol | ||||
| RuianMedicalDevice | Changsha,Hunan | Changsha,Hunan | Engineeringtechnicalresearchandexperimentaldevelopment | 68.70% | Businesscombinationnotundercommoncontrol | ||||
| JunjianMedical | ShenzhenCity,GuangdongProvince | ShenzhenCity,GuangdongProvince | Salesofmedicalconsumables | 100.00% | Businesscombinationnotundercommoncontrol | ||||
Differencebetweentheshareholdingratioandthevotingrightratiointhesubsidiary:N/ABasisforholdinghalforlessofthevotingrightsbutstillcontrollingtheinvestedentity,andholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestedentity:N/AFortheimportantstructuredentityincludedinthecombinationscope,thecontrolbasisisasfollows:N/ABasisfordeterminingwhethertheCompanyisanagentoraprincipal:N/AOtherdescription:
(2)Importantnon-whollyownedsubsidiary
Unit:yuan
| Subsidiaryname | Minorityshareholdingratio | Currentprofitsandlossesattributableto | Currentdividendsdeclaredtominority | Endingbalanceofminorityequity |
| minorityshareholders | shareholders |
Differencebetweentheshareholdingratioandthevotingrightratiooftheminorityshareholdersofthesubsidiary:N/AOtherdescription:
(3)Mainfinancialinformationofimportantnon-whollyownedsubsidiaries
Unit:yuan
| Subsidiaryname | ClosingBalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
Unit:yuan
| Subsidiaryname | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromfinancingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromfinancingactivities | |
Otherdescription:
N/A
(4)MajorrestrictionsontheuseofenterprisegroupassetsandthesettlementofenterprisegroupdebtsN/A
(5)FinancialorothersupportprovidedtostructuredentityincludedintheconsolidatedfinancialstatementsN/AOtherdescription:
2.Transactionsinwhichtheshareofownershipinterestinasubsidiarychangesandthesubsidiaryisstillcontrolled
(1)Descriptionofchangesintheowner'sequityshareinthesubsidiaryN/A
(2)Impactoftransactionsonminorityshareholders'equityandowners'equitiesattributabletotheownersofparentcompany
Unit:yuan
| Purchasecost/disposalconsideration |
| --Cash |
| --Fairvalueofnon-cashassets |
| Totalpurchasecost/disposalconsideration |
| Less:Theshareofthenetassetofasubsidiarycalculatedbasedontheproportionofequityacquired/disposed |
| Balance |
| Including:Capitalreserveadjusted |
| Surplusreserveadjusted |
| Undistributedprofitadjusted |
Otherdescription:
3.Equityinjointventurearrangementorjointventure
(1)Importantcooperativeenterprisesorjointventures
| Nameofcooperativeenterpriseorjointventure | Mainoperationsite | Registrationplace | Businessnature | Shareholdingratio | Accountingtreatmentmethodofinvestmentincooperativeenterprisesorjointventures | |
| Direct | Indirect | |||||
Differencebetweentheshareholdingratioandthevotingrightratiointhecooperativeenterpriseorjointventure:
N/ABasisforholdinglessthan20%ofthevotingrightsbuthavingasignificantimpact,orholding20%ormoreofthevotingrightsbutnothavingasignificantimpact:
(2)MajorFinancialInformationaboutImportantCooperativeEnterprises
Unit:yuan
| Endingbalance/amountincurredincurrentperiod | Beginningbalance/amountincurredinpreviousperiod | |
| Currentassets | ||
| Including:Cashandcashequivalents | ||
| Non-currentassets | ||
| Totalassets | ||
| Currentliabilities | ||
| Non-currentliabilities | ||
| Totalliabilities | ||
| Minorityequity | ||
| Attributabletotheparentcompanyshareholders'equity | ||
| Shareofnetassetsbyshareholdingratio | ||
| Adjustmentitems | ||
| --Goodwill | ||
| --Unrealizedprofitofinternaltransaction | ||
| --Others | ||
| Bookvalueofequityinvestmentsinjointventures | ||
| Fairvalueofequityinvestmentsinjointventureswithpubliclyquotedprices | ||
| Operatingincome | ||
| Financialexpenses | ||
| Incometaxexpenses | ||
| Netprofit | ||
| Netprofitofdiscontinuedoperation |
(continued)
| Endingbalance/amountincurredincurrentperiod | Beginningbalance/amountincurredinpreviousperiod | |
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | ||
| Dividendsreceivedfromjointventuresincurrentyear |
Otherdescription:
(3)MajorFinancialInformationAboutImportantJointlyOperatedEnterprises
Unit:yuan
| Endingbalance/amountincurredincurrentperiod | Beginningbalance/amountincurredinpreviousperiod | |
| Currentassets | ||
| Non-currentassets | ||
| Totalassets | ||
| Currentliabilities | ||
| Non-currentliabilities | ||
| Totalliabilities | ||
| Minorityequity | ||
| Attributabletotheparentcompanyshareholders'equity | ||
| Shareofnetassetsbyshareholdingratio | ||
| Adjustmentitems | ||
| --Goodwill | ||
| --Unrealizedprofitofinternaltransaction | ||
| --Others | ||
| Bookvalueofequityinvestmentsincooperativeenterprises | ||
| Fairvalueofequityinvestmentsincooperativeenterpriseswithpubliclyquotedprices | ||
| Operatingincome | ||
| Netprofit | ||
| Netprofitofdiscontinuedoperation | ||
| Othercomprehensiveincome | ||
| Totalcomprehensiveincome | ||
| Dividendsreceivedfromcooperativeenterprisesincurrentyear |
Otherdescription:
(4)Summaryoffinancialinformationofunimportantcooperativeenterprisesandjointventures
Unit:yuan
| Endingbalance/amountincurredincurrentperiod | Beginningbalance/amountincurredinpreviousperiod | |
| Cooperativeenterprise: | ||
| Totalnumberoffollowingitemsbyshareholdingratio | ||
| -Jointventure: | ||
| Totalbookvalueofinvestment | 21,642,696.16 | 16,949,801.24 |
| Totalnumberoffollowingitemsbyshareholdingratio | ||
| --Netprofit | 4,697,834.75 | 3,525,570.83 |
| --Totalcomprehensiveincome | 4,697,834.75 | 3,525,570.83 |
Otherdescription:
(5)SignificantrestrictionsontheabilityofcooperativeenterprisesandjointventurestotransferfundstotheCompanyN/A
(6)Excesslossesofcooperativeenterpriseorjointventure
Unit:yuan
| Nameofcooperativeenterpriseorjointventure | Accumulatedunrecognizedlossesinthepreviousperiod | Unrecognizedlossincurrentperiod(ornetprofitsharedincurrentperiod) | Accumulatedunrecognizedlossesattheendofcurrentperiod |
Otherdescription:
N/A
(7)UnconfirmedcommitmentsrelatedtoinvestmentincooperativeenterpriseN/A
(8)ContingentliabilitiesrelatedtoinvestmentincooperativeenterpriseorjointventureN/A
4.Importantpoolingofinterests
| Nameofjointoperation | Mainoperationsite | Registrationplace | Businessnature | Shareholdingratio/sharesenjoyed | |
| Direct | Indirect | ||||
Differencebetweentheshareholdingratioorshareenjoyedandthevotingrightratioinjointoperation:
N/A
Ifthejointoperationisaseparateentity,itshallbeclassifiedasthebasisofjointoperation:
Otherdescription:
5.EquityinthestructuredentitythatisnotincludedintheconsolidatedfinancialstatementsDescriptionofstructuredentitynotincludedintheconsolidatedfinancialstatementsN/A
6.OthersNoneX.RisksassociatedwithfinancialinstrumentsTheCompanyisexposedtovariousfinancialrisksintheprocessofoperation:creditrisk,liquidityriskandmarketrisk,includingexchangeraterisk,interestrateriskandotherpricerisk.TheabovefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytomitigatetheserisksaredescribedbelow:
TheBoardofDirectorsisresponsibleforplanningandestablishingtheCompany'sriskmanagementstructure,formulatingtheCompany'sriskmanagementpoliciesandrelevantguidelines,andsupervisingtheimplementationofriskmanagementmeasures.TheCompanyhasformulatedriskmanagementpoliciestoidentifyandanalyzetheriskstowhichtheCompanyisexposed.Theseriskmanagementpoliciesspecifyspecificrisks,coveringvariousaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheCompanyregularlyevaluatesthechangesinthemarketenvironmentandtheCompany'soperatingactivitiestodeterminewhethertoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheCompanyiscarriedoutbytheRiskManagementCommitteeinaccordancewiththepoliciesapprovedbytheBoardofDirectors.TheRiskManagementCommitteeidentifies,evaluates,andavoidsrelatedrisksthroughclosecooperationwithotherbusinessdepartmentsoftheCompany.TheinternalauditdepartmentoftheCompanyconductsregularauditontheriskmanagementcontrolandprocedures,andreportedtheauditresultstotheAuditCommitteeoftheCompany.TheCompanydispersesfinancialinstrumentrisksthroughappropriatediversifiedinvestmentsandbusinessportfolios,andreducerisksconcentratedinasingleindustry,specificregion,orspecificcounterpartybyformulatingcorrespondingriskmanagementpolicies.
(I)CreditriskCreditriskreferstotheriskoffinanciallosstotheCompanyduetothefailureofthecounterpartytofulfillitscontractualobligations.TheCompany'screditriskmainlyarisesfrommonetaryfunds,notesreceivable,accountsreceivable,receivablesfinancing,contractassets,otherreceivables,debtinvestment,otherdebtinvestmentsandfinancialguaranteecontracts,aswellasdebtinstrumentinvestmentsandderivativefinancialassetsmeasuredatfairvaluethroughprofitorlossandnotincludedintheimpairmentassessmentscope.Onthebalancesheetdate,thebookvalueoftheCompany'sfinancialassetsrepresentsitsmaximumcreditriskexposure;TheCompany'smonetaryfundsaremainlydepositedinstate-ownedbanksandotherlargeandmedium-sizedlistedbankswithhighcreditrating.TheCompanybelievesthatthereisnosignificantcreditriskandalmostcannotcausesignificantlossescausedbybankdefault.Inaddition,fornotesreceivable,accountsreceivable,receivablesfinancing,contractualassetsandotherreceivables,theCompanymakesrelevantpoliciestocontrolcreditriskexposure.TheCompanyevaluatesthecustomers'creditqualificationandsetsthecorrespondingcreditperiodbasedonthecustomer'sfinancialstatus,thepossibilityofobtainingguaranteefromathirdparty,creditrecordsandotherfactorssuchascurrentmarketconditions.TheCompanywillregularlymonitorcustomers'creditrecords.Forcustomerswithpoorcreditrecords,theCompanywouldurgepaymentinwriting,shortenthecreditperiodorcancelthecreditperiod,etc.,toensurethattheoverallcreditriskoftheCompanyisundercontrol.
(II)Liquidityrisk
LiquidityriskreferstotheriskofcapitalshortagewhentheCompanyperformstheobligationofsettlementbycashpaymentorotherfinancialassets.TheCompany'spolicyistoensurethatthereissufficientcashtopaythedebtdue.LiquidityriskiscentrallycontrolledbytheFinancialDepartmentoftheCompany.Bymonitoringcashbalances,securitiesthatcanbeturnedintocashatanytime,androllingforecastingofcashflowsoverthenext12months,theFinanceDepartmentensuresthattheCompanyhassufficientfundstorepayitsdebtsunderallreasonableprojections,atthesametime,itcontinuouslymonitorsthecomplianceoftheprovisionsoftheloanagreements,andobtainedcommitmentsfrommajorfinancialinstitutionstoprovidesufficientstandbycapitaltomeetshort-termandlong-termcapitalneeds.TheCompany'svariousfinancialliabilitiesareshownasfollowsintermsofundiscountedcontractcashflowsonmaturitydates:
| Item | ClosingBalance | |||||
| Immediaterepayment | Within1year | 1-2years | 2-5years | Morethan5years | Total | |
| Short-termloans | 2,295,218,930.85 | 2,295,218,930.85 | ||||
| Notespayable | 24,760,000.00 | 24,760,000.00 | ||||
| Accountspayable | 1,119,574,518.58 | 1,119,574,518.58 | ||||
| Otherpayables | 570,843,242.88 | 570,843,242.88 | ||||
| Non-currentliabilitiesduewithinoneyear | 215,946,889.32 | 215,946,889.32 | ||||
| Leaseliabilities | 160,958,289.43 | 204,071,723.77 | 365,030,013.20 | |||
| Total | 4,226,343,581.63 | 160,958,289.43 | 204,071,723.77 | 4,591,373,594.83 | ||
Item
| Item | Closingbalanceofthepreviousyear | |||||
| Immediaterepayment | Within1year | 1-2years | 2-5years | Morethan5years | Total | |
| Notespayable | 36,200,130.04 | 36,200,130.04 | ||||
| Accountspayable | 734,521,490.60 | 734,521,490.60 | ||||
| Otherpayables | 443,946,028.46 | 443,946,028.46 | ||||
| Non-currentliabilitiesduewithinoneyear | 216,181,531.82 | 216,181,531.82 | ||||
| Leaseliabilities | 189,493,128.55 | 242,054,434.14 | 431,547,562.69 | |||
| Total | 1,430,849,180.92 | 189,493,128.55 | 242,054,434.14 | 1,862,396,743.61 | ||
(III)Marketrisk
Marketriskoffinancialinstrumentsreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentsfluctuatesduetothechangeofmarketprice,includingexchangeraterisk,interestrateriskandotherpricerisk.
1.InterestrateriskInterestrateriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentsfluctuatesduetothechangeofmarketinterestrate.TheinterestbearingfinancialinstrumentswithfixedandfloatinginterestratesexposetheCompanytofairvalueinterestrateriskandcashflowinterestraterisk,respectively.TheCompanydeterminestheratiooffixedrateandfloatingrateinstrumentsbasedonthemarketenvironment,andmaintainsanappropriatecombinationoffixedrateandfloatingrateinstrumentsthroughregularreviewandmonitoring.Ifnecessary,theCompanywilluseinterestrateswapinstrumentstohedgeinterestraterisk.OnDecember31,2022,iftheothervariablesremainunchanged,andtheborrowingrateatthefloatingraterisesorfallsby100basispoints,theCompany'snetprofitwilldecreaseorincreasebyRMB1,419,254.31(onDecember31,2021:RMB
0.00).Themanagementconsidersthat100basispointsreasonablyreflectsareasonablerangeofpossiblechangesininterestrateoverthenextyear.
2.ExchangerateriskExchangerateriskreferstotheriskthatthefairvalueorfuturecashflowoffinancialinstrumentsfluctuatesduetothechangeofforeignexchangerate.TheCompanycontinuouslymonitorsforeigncurrencytransactionsandthescaleofforeigncurrencyassetsandliabilitiestominimizeforeignexchangerisks.Inaddition,theCompanymayenterintoforwardforeignexchangecontractsorcurrencyexchangecontractstoachievethepurposeofavoidingtheexchangeraterisk.TheCompanyhasnotsignedanyforwardforeignexchangecontractsorcurrencyswapcontractsduringthecurrentperiodandthepreviousperiod.TheexchangerateriskfacedbytheCompanymainlycomesfromfinancialassetsandfinancialliabilitiesdenominatedinUSD.TheamountsofforeigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconvertedintoRMBarelistedasfollows:
| Item | ClosingBalance | |||||
| USD | EUR | HKD | Yen | Ringgit | Total | |
| Foreigncurrencyfinancialassets | ||||||
| Cashandcashequivalents | 327,441,909.50 | 2,522,237.95 | 32,278,138.80 | 5,101.83 | 87,921.71 | 362,335,309.79 |
| Accountsreceivable | 16,214,112.47 | 5,025,260.67 | 21,239,373.14 | |||
| Otherreceivables | 308,581.55 | 308,581.55 | ||||
| Subtotal | 343,656,021.97 | 2,522,237.95 | 37,611,981.02 | 5,101.83 | 87,921.71 | 383,883,264.48 |
| Foreigncurrencyfinancialliabilities | ||||||
| Accountspayable | 6,492,463.42 | 1,708,517.51 | 8,200,980.93 | |||
| Otherpayables | 588,210.06 | 5,379,147.72 | 708,536.44 | 6,675,894.22 | ||
| Subtotal | 588,210.06 | 11,871,611.14 | 2,417,053.95 | 14,876,875.15 | ||
| Netamount | 343,067,811.91 | 2,522,237.95 | 25,740,369.88 | 5,101.83 | (2,329,132.24) | 369,006,389.33 |
OnDecember31,2022,iftheRMBappreciatesordepreciatesby5%againstUSD/EUR/HKD/Yen/Ringgit,allothervariablesbeingheldconstant,thenetprofitoftheCompanywillbereducedorincreasedbyRMB16,092,001.76(onDecember31,2021:RMB13,738,289.79).Themanagementconsidersthat5%isareasonablereflectionofthereasonablerangeofpossiblechangesinRMBagainstUSD/EUR/HKD/Yen/Ringgit.
3.OtherpricerisksOtherpricerisksrefertotherisksthatthefairvalueorfuturecashflowsoffinancialinstrumentsfluctuateduetothechangesinmarketpricesotherthanexchangerateriskandinterestraterisk.XI.Fairvaluedisclosure
1.Endingfairvalueofassetsandliabilitiesmeasuredwithfairvalue
Unit:yuan
| Item | Closingfairvalue | |||
| Measurementoffairvalueatfirstlevel | Measurementoffairvalueatsecondlevel | Measurementoffairvalueatthirdlevel | Total | |
| I.Continuousfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradablefinancialassets | 3,027,531,039.77 | 1,351,258,920.46 | 4,378,789,960.23 | |
| 1.Financialassetsmeasuredwithfairvalueandwiththechangesincludedincurrentprofitandloss | 3,027,531,039.77 | 1,351,258,920.46 | 4,378,789,960.23 | |
| (3)Derivativefinancialassets | 3,027,531,039.77 | 3,027,531,039.77 | ||
| (4)Trustproducts | 1,351,258,920.46 | 1,351,258,920.46 | ||
| ◆Receivablesfinancing | 93,093,113.79 | 93,093,113.79 | ||
| Totalassetscontinuouslymeasuredatfairvalue | 3,120,624,153.56 | 1,351,258,920.46 | 4,471,883,074.02 | |
| II.Non-continuousfairvaluemeasurement | -- | -- | -- | -- |
2.Continuousandnon-continuousmeasurementitemsoffairvalueatfirstlevelandrecognitionbasisformarket
priceTheinputvalueusedinthefairvaluemeasurementisdividedintothreelevels.Theinputvalueofthefirstlevelistheunadjustedquotationofthesameassetsorliabilitiesontheactivemarketthatcanbeobtainedonthemeasurementday.Theinputvalueofthesecondlevelisthedirectorindirectobservableinputvalueofrelatedassetsorliabilitiesotherthantheinputvalueofthefirstlevel.Theinputvalueofthethirdlevelisthenon-observableinputvalueoftherelevantassetsorliabilities.Thelevelofthefairvaluemeasurementresultswasdeterminedbythelowestleveloftheinputvaluethatissignificanttothemeasurementoffairvalueasawhole.
3.Continuousandnon-continuousmeasurementitemsoffairvalueatsecondlevel,qualitativeandquantitative
informationonvaluationtechniquesadoptedandimportantparameters
4.Continuousandnon-continuousmeasurementitemsoffairvalueatthirdlevel,qualitativeandquantitative
informationonvaluationtechniquesadoptedandimportantparameters
5.Continuousmeasurementitemsoffairvalueatthirdlevel,adjustmentinformationbetweenopeningandclosing
bookvalueandsensitivityanalysisofunobservableparameters
6.Forcontinuousmeasurementitemsoffairvalue,ifthereisaconversionbetweendifferentlevelsincurrentperiod,thereasonsfortheconversionandthepoliciesfordeterminingtheconversiontimepoint
7.Valuationtechnologychangeandreasonofchangeincurrentperiod
8.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
9.OthersXII.Relatedpartiesandconnectedtransactions
1.ParentcompanyoftheCompany
| Parentcompanyname | Registrationplace | Businessnature | Registeredcapital | ShareholdingratiooftheparentcompanyintheCompany | VotingrightratiooftheparentcompanyintheCompany |
| WinnerGroupLimited | CaymanIslands | Equityinvestmentandmanagementbusiness | HKD1,143,000.00 | 68.10% | 68.10% |
ParentcompanyoftheCompanyWinnerGroupLimitedwasincorporatedintheCaymanIslandsonApril8,2003withregistrationnumber124887andanauthorizedsharecapitalof360,000,000.00shareswithanominalvalueofHKD1pershare.1,143,000shareshavebeenissued.TheregisteredaddressisVistra(Cayman)Limited,P.O.Box31119,GrandPavilion,HibiscusWay,802WestBayRoad,GrandCaymanKY1-1205,CaymanIslands.TheultimatecontrollingpartyoftheCompanyisLiJianquan.Otherdescription:N/A
2.SubsidiariesoftheCompany
SeeNote“IX.Interestsinotherentities”.
3.CooperativeenterprisesandjointventuresSeethenote“IX.Interestsinotherentities”forimportantcooperativeenterprisesorjointventuresoftheCompany.OthercooperativeenterprisesorjointventuresthatmaderelatedpartytransactionswiththeCompanyinthecurrentperiod,orformedthebalanceofrelatedpartytransactionswiththeCompanyinthepreviousperiodsareasfollows:
| Nameofcooperativeenterpriseorjointventure | RelationshipwiththeCompany |
| ChengduWinner | Jointventure |
| HubeiXianchuangTechnologyCo.,Ltd. | Jointventure |
Otherdescription:
4.Situationofotherrelatedparties
| Nameofotherrelatedparties | RelationshipofotherrelatedpartieswiththeCompany |
| GloryRayHoldingsLimited | Acompanycontrolledbytheactualcontroller |
| GloryRayLimited | AcompanycontrolledbytheactualcontrollerthroughGloryRayHoldings |
| BeijingSequoiaXinyuanEquityInvestmentCenter(LimitedPartnership) | ShareholderoftheCompany |
| XiamenLeyuanInvestmentPartnership(LimitedPartnership) | ShareholderoftheCompany |
| XiamenYutongInvestmentPartnership(LimitedPartnership) | ShareholderoftheCompany |
| XiamenHuikangInvestmentPartnership(LimitedPartnership) | ShareholderoftheCompany |
| ShenzhenCapitalGroupCo.,Ltd. | ShareholderoftheCompany |
| XiamenZepengInvestmentPartnership(LimitedPartnership) | ShareholderoftheCompany |
| ChengduWinnerLikangMedicalProductsCo.,Ltd. | Jointventure,with49%equityholdbytheCompany |
| WuhanZhuolingPackagingCo.,Ltd. | AcompanycontrolledbyclosefamilymembersoftheCompany'skeymanagers |
| GloryRayHoldingsLimited | Acompanycontrolledbytheactualcontroller |
| ShenzhenBreoTechnologyCo.,Ltd. | AcompanyinwhichtheCompany'soriginalindependentdirectorLiangWenzhaoasanindependentdirector |
| ShenzhenEllassayFashionCo.,Ltd. | AcompanyinwhichtheCompany'soriginalindependentdirectorZhouXiaoxiongasanindependentdirector |
| LiJianquan | ActualcontrolleroftheCompany |
| FangXiuyuan | Director,deputygeneralmanager,chieffinancialofficer |
| XuXiaodan | Director |
| GuoZhenwei | Director |
| PengJianfeng | IndependentDirector |
| XieJiawei | IndependentDirector |
| LiuKe | IndependentDirector |
| ZhangTingting | ChairmanoftheBoardofSupervisors |
| WangYing | Supervisor |
| LiuHua | Employeesupervisor |
| ChenHuixuan | Secretarytotheboardofdirectors,deputygeneralmanager |
| ZhangLi | Deputygeneralmanager |
| HuangJun | OriginalshareholderandoriginaldirectorofWinnerMedical(Hunan) |
| LixianSHRCBRuralBankCo.,Ltd. | AcompanyinwhichZhengDatian,ViceChairmanofWinnerMedical(Hunan),servesasadirector |
| JingyiBiotechnology(Shanghai)Co.,Ltd. | AcompanyactuallycontrolledbyWuKangping,ashareholderofLongtermMedical |
(continued)
| Nameofotherrelatedparties | RelationshipofotherrelatedpartieswiththeCompany |
| ShenzhenNineStarsPrintingandPackagingGroupCo.,Ltd. | AcompanycontrolledbythefinalcontrollerofWinnerGuilinbeforemerge |
| ShenzhenJunheshengTechnologyCo.,Ltd. | AcompanycontrolledbytheactualcontrollerofJunjianMedicalbeforemerge |
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | AcompanycontrolledbytheactualcontrollerofJunjianMedicalbeforemerge |
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | AcompanycontrolledbytheactualcontrollerofJunjianMedicalbeforemerge |
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | AcompanyactuallycontrolledbyWuDi,ashareholderofLongtermMedical |
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | AcompanyactuallycontrolledbyWuDi,ashareholderofLongtermMedical |
| ZheJiangLongrisingMedicalNewMaterialsCo.,Ltd. | AcompanyactuallycontrolledbyWuKangping,ashareholderofLongtermMedical |
| ZhengJunhui | ControllingshareholderandactualcontrollerofJunjianMedicalbeforemerger |
| WuKangping,HuangLepei,WuDi | ControllingshareholderofJunjianMedicalbeforemergeranditscurrentminorityshareholder |
Otherdescription:
5.Connectedtransaction
(1)Connectedtransactionofpurchasesandsalesofgoods,provisionandacceptanceofservicesPurchaseofgoods/acceptanceofservices
Unit:yuan
| Relatedparty | Connectedtransaction | Amountincurredincurrentperiod | Approvedtransactionquota | Whetherthetransactionquotaisexceeded | Amountincurredinpreviousperiod |
| WuhanZhuolingPackagingCo.,Ltd. | Purchaseofgoodsorservices | 77,258,887.85 | No | 35,219,394.72 | |
| ChengduWinnerLikangMedicalProductsCo.,Ltd. | Purchaseofgoodsorservices | 563,725.61 | No | 280,008.49 | |
| ShenzhenBreoTechnologyCo.,Ltd. | Purchaseofgoodsorservices | No | 84,650.44 | ||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | Purchaseofgoodsorservices | 668,252.32 | No | ||
| ShenzhenNineStarsPrintingandPackagingGroupCo.,Ltd. | Purchaseofgoodsorservices | 352,151.87 | No | ||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | Purchaseofgoodsorservices | 139,551.39 | No | ||
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | Purchaseofgoodsorservices | 643,678.38 | No | ||
| ZheJiangLongrisingMedicalNewMaterialsCo.,Ltd. | Purchaseofgoodsorservices | 150,642.09 | No | ||
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | Purchaseofgoodsorservices | 149,844.78 | No |
Sellofcommodities/provisionoflaborservice
Unit:yuan
| Relatedparty | Connectedtransaction | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Whetherthetransactionquotaisexceeded | Amountincurredinpreviousperiod |
| ChengduWinnerLikangMedicalProductsCo.,Ltd. | Sellofgoodsorservices | 11,746,826.18 | No | 35,219,394.72 | |
| ShenzhenEllassayFashionCo.,Ltd. | Sellofgoodsorservices | 59,342.47 | No | 280,008.49 | |
| SCGC | Sellofgoodsorservices | 130,787.61 | No | 84,650.44 | |
| LixianSHRCBRuralBankCo.,Ltd. | Sellofgoodsorservices | 3,893.81 | No | ||
| ZheJiangLongrisingMedicalNewMaterialsCo.,Ltd. | Sellofgoodsorservices | 5,532.76 | No | ||
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | Sellofgoodsorservices | 468,765.43 | No | ||
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | Sellofgoodsorservices | 6,735,072.47 | No | ||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | Sellofgoodsorservices | 9,121,976.34 | No | ||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | Sellofgoodsorservices | 399,011.49 | No |
Relatedtransactionofpurchasesandsalesofgoods,provisionandacceptanceofservices
(2)Associatedfiduciarymanagement/contractingandentrustedmanagement/subcontractingEntrustedmanagement/contractingoftheCompany:
Unit:yuan
| Nameofentrustingparty/subcontractor | Nameofentrustingparty/contractor | Entrusted/contractingassettype | Fiduciary/contractingstartdate | Fiduciary/contractingterminationdate | Pricingbasisoffiduciaryincome/contractingincome | Fiduciaryincome/contractingincomerecognizedincurrentperiod |
Associatedfiduciary/contracting:N/AEntrustedmanagement/subcontractingoftheCompany:
Unit:yuan
| Nameofentrustingparty/subcontractor | Nameofentrustingparty/contractor | Entrusted/subcontractingassettype | Entrusted/subcontractingstartdate | Entrusted/subcontractingterminationdate | Pricingbasisoffiduciaryfee/subcontractingfee | Fiduciaryfee/subcontractingfeerecognizedincurrentperiod |
Associatedmanagement/subcontracting:N/A
(3)Related-partyleaseTheCompanyasthelessor:
Unit:yuan
| Nameoflessee | Typeofleasedassets | Leaseincomerecognizedinthecurrentperiod | Leaseincomerecognizedinthepreviousperiod |
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | Plant | 257,033.03 |
TheCompanyasthelessee:
Unit:yuan
| Nameoflessor | Typeofleasedassets | Simplifiedprocessingofshort-termleasesandrentalexpensesoflow-valueassetleases(ifapplicable) | Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilities(ifapplicable) | Rentpaid | Interestexpensesincurredonleaseliabilities | Right-of-useassetsincreased | |||||
| Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | Amountincurredincurrentperiod | Amountincurredinpreviousperiod | ||
Related-partyleasedescription:N/A
(4)Related-partyguaranteeTheCompanyastheguarantor
Unit:yuan
| Securedparty | Amountguaranteed | Guaranteestartdate | Guaranteematuritydate | Whethertheguaranteehasbeenfulfilled |
| WuKangping,HuangLepei | 150,000,000.00 | February23,2022 | February22,2026 | No |
| WuKangping,HuangLepei | 60,000,000.00 | April13,2021 | April12,2027 | No |
| WuKangping | 11,000,000.00 | February07,2021 | February06,2025 | No |
| HuangLepei | 11,000,000.00 | February07,2021 | February06,2025 | No |
| WuDi | 11,000,000.00 | February07,2021 | February06,2025 | No |
| WuKangping | 10,000,000.00 | February24,2022 | February23,2025 | No |
| HuangLepei | 10,000,000.00 | February24,2022 | February23,2025 | No |
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | 10,000,000.00 | February24,2022 | February23,2025 | No |
TheCompanyasthesecuredparty
Unit:yuan
| Guarantor | Amountguaranteed | Guaranteestartdate | Guaranteematuritydate | Whethertheguaranteehasbeenfulfilled |
Related-partyguarantee
(5)Relatedpartyloanatcall
Unit:yuan
| Relatedparty | Borrowingamount | Startdate | Maturitydate | Description |
| Borrowing |
| Lending |
(6)Assettransferanddebtrestructuringofrelatedparty
Unit:yuan
| Relatedparty | Connectedtransaction | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
(7)Keymanagementpersonnelremuneration
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Keymanagementpersonnelremuneration | 13,446,315.05 | 11,225,549.33 |
(8)Otherconnectedtransactions
6.Accountsreceivableandpayablebyrelatedparties
(1)Receivables
Unit:yuan
| Projectname | Relatedparty | ClosingBalance | Beginningbalance | ||
| Bookbalance | Provisionforbaddebt | Bookbalance | Provisionforbaddebt | ||
| Accountsreceivable | |||||
| ChengduWinnerLikangMedicalProductsCo.,Ltd. | 369,395.74 | 18,469.79 | 1,925,119.44 | 96,255.97 | |
| SCGC | 35,880.00 | 1,794.00 | |||
| JingyiBiotechnology(Shanghai)Co.,Ltd. | 651,786.67 | 220,006.76 | |||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | 7,331,532.66 | 366,576.63 | |||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | 1,762,022.32 | 88,101.12 | |||
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | 1,837,108.40 | 91,855.42 | |||
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | 144,673.40 | 7,233.67 | |||
| ZheJiangLongrisingMedicalNewMaterialsCo.,Ltd. | 55,964.00 | 2,798.20 | |||
| Advancestosuppliers | |||||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | 274,273.56 | ||||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | 1,170.00 | ||||
(2)Payables
Unit:yuan
| Projectname | Relatedparty | Endingbookbalance | Beginningbookbalance |
| Accountspayable | |||
| WuhanZhuolingPackagingCo.,Ltd. | 23,113,608.45 | 17,557,893.52 | |
| ChengduWinnerLikangMedicalProductsCo.,Ltd. | 81,750.48 | 69,711.48 | |
| ShenzhenNineStarsPrintingandPackagingGroupCo.,Ltd. | 194,545.00 | ||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | 9,219.64 | ||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | 2,964.00 | ||
| ZhejiangKanglidiMedicalSuppliesCo.,Ltd. | 93,378.17 | ||
| ZheJiangLongmedMedicalTechnologyCo.,Ltd. | 10,617.60 | ||
| Otherpayables | |||
| HuangJun | 4,490,583.41 | ||
| ShenzhenShengtianningMedicalDeviceCo.,Ltd. | 470,799.92 | ||
| ShenzhenZhengjunMedicalDeviceCo.,Ltd. | 134,199.16 | ||
| ZhengJunhui | 78,812,000.00 | ||
| Contractliabilities | |||
| SCGC | 11,946.90 |
7.Relatedpartycommitment
8.Others
XIII.Share-basedpayment
1.Overallstatusofshare-basedpayment
√Applicable?Notapplicable
Unit:yuan
| TotalamountofequityinstrumentsgrantedbytheCompanyduringthecurrentperiod | 0.00 |
| TotalamountofequityinstrumentsexercisedbytheCompanyduringthecurrentperiod | 0.00 |
| TotalamountofequityinstrumentsinvalidatedbytheCompanyduringthecurrentperiod | 0.00 |
| RangeoftheexercisepriceoftheCompany'sstockoptionsoutstandingattheendoftheperiodandtheremainingtermofthecontract | Incaseoftheauditedoperatingincomein2021≥RMB12billion,theownershipproportionattheCompanylevelis100%;incaseofRMB10billion≤theauditedoperatingincomein2021<RMB12billion,theownershipproportionattheCompanylevelis80%;incaseoftheauditedbusinessincomein2021<RMB10billion,therestrictedstockplannedtobevestedbytheincentiveobjectshallnotbevestedandbecomeinvalid.Incaseoftheauditedoperatingincomein2022≥theauditedoperatingincomein2021*(1+30%),theownershipproportionattheCompanylevelis100%;incaseoftheauditedoperatingincomein2021*(1+20%)≤theauditedoperatingincomein2022<theauditedoperatingincomein2021*(1+30%),theownershipproportionattheCompanylevelis80%;incaseoftheauditedbusinessincomein2022<theauditedoperatingincomein2021*(1+20%),therestrictedstockplannedtobevestedbytheincentiveobjectshallnotbevestedandbecomeinvalid. |
| RangeoftheexercisepriceoftheCompany'sotherequityinstrumentsoutstandingattheendoftheperiodandtheremainingtermofthecontract | None |
Otherdescription:
2020RestrictedStockIncentivePlan
1.NumberofrestrictedstockgrantedOnNovember27,2020,theCompanyheldthe15thmeetingofthesecondBoardofDirectorsandthe9thmeetingofthesecondBoardofSupervisors,deliberatedandpassedtheProposalontheCompany's2020RestrictedStockIncentivePlan(Draft)andItsAbstract.OnDecember15,2020,theCompanyheldthesixthextraordinarygeneralmeetingofshareholdersin2020todeliberateandpasstheProposalontheCompany's2020RestrictedStockIncentivePlan(Draft)andItsAbstract.Accordingtotheaboveproposal,thenumberofrestrictedstock(ClassIIrestrictedstock)tobegrantedinthisincentiveplanis6.5million,andtheunderlyingstockinvolvedisA-sharecommonstock,accountingforabout1.52%ofthetotalcapitalstockoftheCompanyatthetimeofannouncementofthedraftincentiveplan.Amongthem,5.9millionsharesweregrantedforthefirsttime,accountingforabout1.38%ofthetotalcapitalstockoftheCompanyatthetimeofannouncementofthedraftincentiveplan,and90.77%ofthetotalequitytobegranted.0.6millionshareswerereservedtobegranted,accountingforabout0.14%ofthetotalcapitalstockoftheCompanyatthetimeofannouncementofthedraftincentiveplan,and9.23%ofthetotalequitytobegranted.Nomorethan1,053incentiveobjectswillbegrantedatthefirsttime,includingdirectors,seniormanagers,andotherpersonsdeemedtoneedincentivesbytheBoardofDirectors.OnDecember18,2020,theCompany's17thmeetingofthesecondBoardofDirectorsandthe11thmeetingofthesecondBoardofSupervisorsdeliberatedandadoptedtheProposalonFirstGrantingRestrictedStockstoIncentiveObjects.Inviewofthefactthat17incentiveobjectsgaveuptherestrictedstocktobegrantedbytheCompanyduetoresignationorpersonalreasons,theynolongerqualifiedfortheincentiveconditions.Accordingtothe2020RestrictedStockIncentivePlan(Draft),theCompanyadjustedtheincentiveobjectsandthenumberofgrants.Thenumberofincentiveobjectsgrantedforthefirsttimewasadjustedfrom1,053to1,036,andthetotalnumberofrestrictedstockgrantedforthefirsttimewasadjustedfrom
5.90millionto5.833million.
2.Validity,grantdate,vestingarrangementandlock-upperiodofthisincentiveplan
Theincentiveplanshallbevalidfornomorethan48monthsfromthedateofthefirstgrantofrestrictedstocktothedatewhenalltherestrictedstockgrantedtotheincentiveobjectisvestedorinvalidated.
2AftertheincentiveplanisapprovedbythegeneralmeetingofshareholdersoftheCompany,theBoardofDirectors
shalldeterminethegrantdate,andthegrantdatemustbethetradingday.TheCompanyshallgranttherestrictedstockandcompletetheannouncementwithin60daysaftertheapprovalofthegeneralmeetingofshareholders.IftheCompanyfailstocompletetheaboveworkwithin60days,theimplementationofthisincentiveplanwillbeterminated,andtherestrictedstocknotgrantedwillbecomeinvalid.TheCompanyshall,within12monthsafterthedeliberationandapprovaloftheincentiveplanbythegeneralmeetingofshareholders,specifytheincentiveobjectsreservedforaward.Iftheincentiveobjectsarenotspecifiedformorethan12months,therestrictedstockcorrespondingtothereservedpartshallbecomeinvalid.
Thevestingarrangementforthefirstgrantofrestrictedstockinthisincentiveplanisshowninthefollowingtable:
| Vestingarrangement | Vestingperiod | Vestingratio |
| Firstvestingperiod | Fromthefirsttradingdayof17monthsfromthedateofthefirstgranttothelasttradingdaywithin29monthsfromthedateofthefirstgrant | 50% |
| Secondvestingperiod | Fromthefirsttradingdayof29monthsfromthedateofthefirstgranttothelasttradingdaywithin41monthsfromthedateofthefirstgrant | 50% |
Iftherestrictedstockcorrespondingtothereservedpartisgrantedwithin2020,thevestingarrangementforgrantingrestrictedstocksreservedinthisincentiveplanisconsistentwiththevestingarrangementforthefirstgrantofrestrictedstock.Iftherestrictedstockcorrespondingtothereservedpartisgrantedwithin2021,thevestingarrangementforgrantingrestrictedstocksreservedinthisincentiveplanisshowninthefollowingtable:
| Vestingarrangement | Vestingperiod | Vestingratio |
| Firstvestingperiod | Fromthefirsttradingdayof12monthsfromthedateofreservedgrantingtothelasttradingdaywithin24monthsfromthedateofreservedgranting | 50% |
| Secondvestingperiod | Fromthefirsttradingdayof24monthsfromthedateofreservedgrantingtothelasttradingdaywithin36monthsfromthedateofreservedgranting | 50% |
IftheincentiveobjectsaredirectorsandseniormanagementoftheCompany,thesharestransferredeachyearduringtheirtermofofficeshallnotexceed25%ofthetotalnumberoftheCompany'ssharestheyhold;theyshallnottransferthesharestheyholdwithinhalfayearafterleavingtheCompany.
2.Equity-settledshare-basedpayments
√Applicable?Notapplicable
Unit:yuan
| Methodfordeterminingthefairvalueofequityinstrumentsonthegrantdate | ThefairvalueoftherestrictedstockiscalculatedusingtheBlack-Scholesmodeloptionpricingformula;thefairvalueofotheremployeerestrictedstocksisdeterminedbyreferencetothestockclosingpriceonthegrantdatewithouttakingintoaccounttheliquiditydiscount. |
| Basisforthedeterminationofthenumberofviableequityinstruments | None |
| Reasonsforsignificantdifferencesbetweenthecurrentandpreviousestimates | None |
| Accumulatedamountofequity-settledshare-basedpaymentsrecordedincapitalreserves | 88,485,055.94 |
| Totalamountofexpensesrecognizedbyequity-settledshare-basedpaymentsincurrentperiod | -3,373,485.57 |
Otherdescription:
Thefirstvestingperiodshallbecomeinvalidifitfallstomeettheperformanceconditions;Thecottonsectionandsomemedicalsectioninthecurrentperiodshallbecomeinvalidifsubsidiariesfalltomeetthestandards.
3.Cash-settledshare-basedpayments?Applicable√Notapplicable
4.Modificationandterminationofshare-basedpaymentNone
5.OthersNoneXIV.Commitmentandcontingencies
1.ImportantcommitmentissuesImportantcommitmentsonbalancesheetdate
1.Importantcommitmentsonbalancesheetdate
(1)Large-scaleoutsourcingcontractsthathavebeensignedorareabouttobeperformedandtheirfinancialimplications
AsofDecember31,2022,theoutstandinglargecontractsbetweentheCompanyoritssubsidiariessignedandintheprocessofbeingperformedortobeperformedareasfollows:
| Projectname | Amount |
| WinnerMedical(Shenzhen)-MedicalIndustryBuilding | 261,723,960.00 |
| WinnerMedical(Jiayu)-Building1-4inNewFactory | 105,176,000.00 |
| WinnerMedical(Jiayu)-Building5-8inNewFactory | 91,140,000.00 |
| WinnerMedical(Wuhan)-AutomaticWarehouseinPhaseIIPlant | 72,000,000.00 |
| WinnerMedical(Wuhan)-PhaseIIPlantSupportingProject(1-3#SortingWorkshops) | 67,000,000.00 |
| WinnerGuilin-Buildingsin1-3#Workshops | 52,800,000.00 |
| WinnerMedical(Jingmen)-AutomatedWorkshop(fourfloors) | 39,669,908.28 |
| WinnerMedical(Jiayu)-PowerDistributionEPCinScienceandTechnologyIndustrialPark | 36,000,000.00 |
| WinnerMedical(Jiayu)-NewFactory-SpunlaceLine | 23,200,000.00 |
| WinnerMedical(Jiayu)-AutomatedStorageEngineeringinScienceandTechnologyIndustrialPark | 20,588,000.00 |
| WinnerMedical(Jiayu)-SewageTreatmentSysteminNewFactory | 17,595,300.00 |
| WinnerMedical(Wuhan)-HousingConstructionProjectforPhaseIIR&DCenter | 14,266,508.00 |
| WinnerMedical(Wuhan)-ReconstructionProjectofShiftBuildingandCanteen | 13,285,492.00 |
| WinnerMedical(Huanggang)-ComprehensiveWorkshopEngineering | 11,250,000.00 |
| WinnerMedical(Wuhan)-Workshop1,Section1ofPhaseIIProject | 11,087,172.20 |
| WinnerMedical(Shenzhen)-ChengduWenjiangPlantDecoration | 8,188,699.00 |
| WinnerMedical(Huanggang)-No.4PackagingandProductionLineforSanitaryPads | 5,875,000.00 |
| WinnerMedical(Jiayu)-NewFactory-CottonCleanerandCardingMachine | 5,040,000.00 |
| Total | 855,886,039.48 |
2.Contingencies
(1)ImportantcontingenciesonbalancesheetdateTheCompanyhasnosignificantcontingenciestobedisclosedasofDecember31,2022.
(2)ExplanationisalsorequirediftheCompanyhasnoimportantcontingenciestobedisclosedTheCompanyhasnoimportantcontingenciestobedisclosed.
3.OthersNone
XV.Post-balancesheetevents
1.Importantnon-adjustmentitems
Unit:yuan
| Item | Description | Influencenumberoffinancialpositionandoperatingresults | Reasonsforinfluencenumbercannotbeestimated |
2.Profitdistribution
Unit:yuan
3.SalesreturnNone
4.Otherpost-balancesheetevents
NoneXVI.Otherimportantissues
1.Correctionofpreviousaccountingerrors
(1)Retrospectiverestatement
Unit:yuan
| Contentofaccountingerrorcorrection | Processingprocedures | Reportitemnameofeachaffectedcomparisonperiod | Cumulativeinfluencenumber |
(2)Prospectiveapplication
| Contentofaccountingerrorcorrection | Approvalprocedures | Reasonforadoptingprospectiveapplication |
2.Debtrestructuring
N/A
3.Assetsreplacement
(1)Exchangeofnon-monetaryassetsN/A
(2)Otherassetreplacement
4.PensionplanN/A
5.Discontinuedoperation
Unit:yuan
| Item | Income | Cost | Totalprofit | Incometaxexpenses | Netprofit | Profitfromdiscontinuedoperationsattributabletotheownersofparentcompany |
Otherdescription:
N/A
6.Segmentinformation
(1)DeterminationbasisandaccountingpolicyofreportingsegmentAccordingtotheCompany'sinternalorganizationalstructure,managementrequirementsandinternalreportingsystem,tworeportingsegmentshavebeendetermined,respectively:medicalconsumables,healthconsumergoods.ReportingsegmentsoftheCompanyoffersdifferentproductsorservicesoroperatesindifferentregions.Sinceeachsegmentrequiresdifferenttechnologiesormarketingstrategies,themanagementoftheCompanymanagestheoperatingactivitiesofeachreportingsegmentseparatelyandregularlyevaluatestheoperatingresultsofthesereportingsegmentstodeterminetheallocationofresourcestothemandevaluatetheirperformance.Theinter-segmenttransferpriceisdeterminedonthebasisoftheactualtransactionprice,andtheexpensesindirectlyattributabletothesegmentsaredistributedamongthesegmentsinproportiontotheincome(asdeterminedbytheCompany).Assetsareallocatedaccordingtotheoperationsofasegmentandthelocationoftheassets.Liabilitiesofasegmentincludeliabilitiesattributabletothatsegmentarisingfromtheoperationsofasegment.Ifexpensesrelatedtoliabilitiessharedbymultipleoperatingsegmentsareallocatedtothoseoperatingsegments,suchsharedliabilitiesarealsoallocatedtothoseoperatingsegments.
(2)Financialinformationofthereportingsegment
Unit:yuan
| Item | Medicalconsumables(segment1) | Healthyconsumergoods(segment2) | Unallocated | Offsetbetweensegments | Total |
| Operatingincome | 7,296,345,982.92 | 4,054,985,562.16 | 11,351,331,545.08 | ||
| Operatingcosts | 4,058,787,379.05 | 1,914,013,438.24 | 5,972,800,817.29 | ||
| Assetsimpairmentloss&creditimpairmentloss | 161,284,732.20 | 188,998,568.55 | 76,529,362.00 | 426,812,662.75 | |
| Depreciationexpenseandamortizationexpense | 137,251,606.74 | 282,186,779.25 | 419,438,385.99 | ||
| Operatingprofit/loss | 1,540,701,692.03 | 392,129,139.40 | 43,718,981.15 | 1,976,549,812.58 | |
| Non-operatingincomeandexpense | (57,043,716.25) | (57,043,716.25) | |||
| Assetsandliabilities | |||||
| Totalassets | 9,418,198,129.61 | 3,051,005,127.24 | 5,768,546,144.71 | 18,237,749,401.56 | |
| Totalliabilities | 2,035,387,904.83 | 1,144,334,334.03 | 2,875,259,156.25 | 6,054,981,395.11 |
(3)IftheCompanyhasnoreportingsegments,orcannotdisclosethetotalassetsandtotalliabilitiesofeachreportingsegment,thereasonsshallbeexplained.None
(4)OtherdescriptionNone
7.Otherimportanttransactionsandmattersaffectingthedecision-makingofinvestors
1.UrbanRenewalProjectofWinnerIndustrialPark
(1)ProjectOverviewOnApril6,2017,theCompanyandShenzhenXingheRealEstateDevelopmentCo.,Ltd.(hereinafterreferredtoas“XingheRealEstate”)signedtheCooperationAgreementonUrbanRenewalProjectofWinnerIndustrialParktoapplyforandimplementthedemolitionandreconstructionofurbanrenewalandreconstructionofWinnerIndustrialParkinLonghuaDistrict,ShenzhenCity(hereinafterreferredtoasthe“Project”).ThescopeoflandtobedemolishedfortheProjectisastate-ownedlandthathasbeentransferred.ThelandparcelnumberisA819-0123.Thelandareais29,064.49m
,andthecurrentuseisindustrialland.Accordingtothestatutoryplanof[Pinustabulaeformisarea]ofNo.402-19&20&21,Bao'anDistrict,ShenzhenCity,theplanneduseofthislandparcelisasecond-classresidentialland.Thelandhasbeenregisteredfortitlewithaconstructionareaof36,625.89m
,usedforoffice,plantanddormitory.TheCompanyshallbethesolesubjectofrightstothesaidparcelandallthebuildings(structures)andappendagesthereon.Atpresent,theabovetargetlandandpartofthebuildingarenotmortgaged.Thefirsttosixthfloorsofthesecondofficebuilding,thefirsttosixthfloorsofthethirddormitorybuilding,andthefirsttosixthfloorsofthefourthdormitorybuildinghavebeenmortgagedatpresent.
(2)CooperationmodeTheCompanyagreestoentrustthetargetlandandbuildingtoXingheRealEstateforapplicationforapprovaloftheurbanrenewalunitplan,andacceptstherelocationcompensationofXingheRealEstateaccordingtotheconditionsagreedinthisagreement.XingheRealEstateisresponsibleforalltheworkrelatedtothedeclarationofrenewalunitplanofthetargetlandandbuildingandimplementationofurbanrenewal,responsiblefortherelocationcompensationanddemolitionandreconstructionfunds,andenjoystheinterestintherenewalprojectasthesinglemarketimplementer.Aftertherenewalandreconstructionofthetargetlandandbuildingsisapprovedbytheurbanrenewalunitplan,thespecifictransformationanddevelopmentintensity,plannedpurposeandindicators,etc.shallbediscussedbyXingheRealEstatewiththeCompanyinadvancebeforetheformalapplicationforconstruction,butthefinalapprovalshallbesubjecttotherelevantgovernmentdepartments.GalaxyRealEstateshallpaythecooperationconsiderationtotheCompanybypayingtherelocationcompensationconsiderationtotheCompany.TheCompanyvoluntarilychoosestherelocationcompensationmethodthatcombinesmonetarycompensationandpropertyrightexchange(relocation),including:1)monetarycompensation:RMB400million;2)Propertyrightexchange(relocation):theareaofpropertyrightexchange(relocation)obtainedbyPartyBshallbedeterminedat40%ofthegrossfloorareaforsalebasedonthegrossfloorareaforsaledeterminedinthefinalapprovalofthespecialplanningoftherenewalunitofthisProject.
(3)Currentprogress
Uptonow,GalaxyRealEstatehaspaidthefirstmarginofRMB50millionandthesecondadvancecompensationofRMB100millionfordemolitiontotheCompanyaccordingtotheagreement.TheprojectwasannouncedinSeptember2019,andtheprojectwasapprovedinDecember2019.Itisnowinthestageofspecialplanning.Subsequentprogresswillbemadeinaccordancewiththeproceduresstipulatedbythegovernment,andthespecificprogresswillbesubjecttothegovernment'sapproval.Accordingtotheagreement,iftheprojectfailstoobtaintheapprovaloftherenewalunitplanduetogovernmentpoliciesorexternalreasons,eitherpartyhastherighttoterminatethecontract,andtheamountcollectedbytheCompanywillbereturnedtoGalaxyRealEstatewithoutinterestwithin30daysaftertheterminationofthecontract.
2.Heyuaninvestmentandconstructionproject
(1)ProblembackgroundIn2016,undertheguidanceandpromotionofShenzhenLonghuaDistrictCommitteeandDistrictGovernment,theCompanyplanstotransferpartoftheproductionandlogisticsfunctionstoHeyuanZijinLinjiangIndustrialParkinresponsetothepolicyofsupportingHeyuanCityasacounterpartofShenzhenCity.InMay2016,theCompanyandthePeople'sGovernmentofZijinCountyofHeyuanCitysignedtheAgreementonInvestmentandConstructionofMedicalPackageandCottonHouseholdGoodsProductionProject(hereinafterreferredtoasthe“InvestmentAgreement”),withtheconstructionlandoftheprojectcovering200,000m
AftertheagreementwassignedandtheLandUseNoticewasobtained,theCompanysubmittedtheplanningplan,projectapplicationandapprovalformasrequired,andstartedtheconstruction.InAugust2016,WinnerMedical(Heyuan)obtainedtheRecordCertificateofEnterpriseInvestmentProjectsinGuangdongProvinceissuedbytheDevelopmentandReformBureauofZijinCounty.InJune2017,EnvironmentalProtectionBureauofZijinCountyissuedtheApprovalontheEnvironmentalImpactReportFormoftheConstructionProjectofWinnerMedical(Heyuan)Co.,Ltd.Inaccordancewiththeagreement,theZijinCountyGovernmentassistedinobtainingaseriesoflicensessuchasstate-ownedlanduserightcertificateandconstructionlandplanningpermit.Aftertheprojectwassignedandstartedconstruction,thegovernmentrequiredallconstructionprojectsunderconstructioninZijinLinjiangIndustrialParktostopduetolandconflictsbetweentheprojectsiteandtheplannedHeyuanEastStationofJiangxi-ShenzhenHigh-speedRailwayandtheHigh-speedRailwayNewTown.Meanwhile,therelevantlanduseproceduresweresuspended.
(2)CurrentprogressInJune2019,theRegulatoryDetailedPlanningandConstructionalDetailedUrbanDesignoftheCoreAreaofHeyuanHigh-speedRailwayNewTownwaspublishedtothepublicfromJune22,2019toJuly22,2019.Accordingtothefinalpublicitycontent,itisdeterminedthatthesquareinfrontofHeyuanEastStationofHigh-speedRailway,NationalHighway205andtheHigh-speedRailwayNewTownoverlapwiththeprojectlandofWinnerMedical(Heyuan).InOctober2019,theCompanysignedatripartiteagreementwiththePeople'sGovernmentofZijinCountyandtheManagementCommitteeofHeyuanJiangdongNewDistricttoclarifytheoveralldisposalplan.ThelandusedforWinnerMedical(Heyuan)'sprojectanditsabove-groundbuildingswillberecoveredbythePeople'sGovernmentofZijinCounty,andthethreepartiesagreetodeterminetheamountofcompensationthrougharbitration.ThePeople'sGovernmentofZijinCountypaidRMB30milliontotheCompanyastheperformancebond.InNovember2019,InternationalArbitrationCourtofGanjiangNewDistrictissuedtheAward((2019)G.G.Z.ZiNo.095),whichconfirmedtheterminationoftheoriginalInvestmentAgreement,andthePeople'sGovernmentofZijinCountyshallbeartheattorneyfees,legalcostsandotherexpensestotalingRMB2,655,320.00.ThelandtransferdepositofRMB3millionshallbereturnedtotheCompanyandcompensatefortheeconomiclossofRMB550million.ThePeople'sGovernmentofZijinCountyshallpay50%oftheamountbeforeDecember31,2019and50%beforeFebruary29,2020.AsofDecember31,2020,theCompanyhasreceivedthelandtransferdepositofRMB3millionreturnedbythePeople'sGovernmentofZijinCountyandpaidthecompensationofRMB328million.TheCompanyhasalsohandedovertheprojectland,above-groundbuildings,equipmentandfacilitiesandrelevantsupportingmaterialstothePeople'sGovernmentofZijinCounty.
(3)ImpactofthismatterontheCompany'soperationHeyuanWinner'sbusinesspositioningismainlytheproduction,logisticsandwarehousingfunctionsofmedicalpackageandcottondailynecessities.Atpresent,theCompanyhastransferredtheproduction,logisticsandwarehousingfunctionsofPurcottondailynecessitiestotheCompany'ssubsidiaryWinnerMedical(Wuhan),andtheproductionofmedicalpackagehasbeentransferredtotheCompany'ssubsidiaryWinnerMedical(Chongyang).WinnerMedical(Wuhan)andWinnerMedical(Chongyang)havesufficientcapacitytoundertaketheaforementionedproduction,logisticsandwarehousingbusinessoriginallyintendedtobeundertakenbyWinnerMedical(Heyuan).TheabovemattersofWinnerMedical(Heyuan)havenotcausedsignificantadverseimpactonthenormalproductionandoperationoftheCompany.
8.Others
None
XVII.Notesonmainitemsofparentcompany'sfinancialstatement
1.Accountsreceivable
(1)Classifieddisclosureofaccountsreceivable
Unit:yuan
| Class | ClosingBalance | Beginningbalance | ||||||||
| Bookbalance | Provisionforbaddebt | Bookvalue | Bookbalance | Provisionforbaddebt | Bookvalue | |||||
| Amount | Proportion | Amount | Accruingproportion | Amount | Proportion | Amount | Accruingproportion | |||
| Including: | ||||||||||
| Accountsreceivableofprovisionforbaddebtbycombination | 475,895,954.26 | 100.00% | 21,764,624.41 | 4.57% | 454,131,329.85 | 528,512,638.89 | 100.00% | 26,295,000.03 | 4.98% | 502,217,638.86 |
| Including: | ||||||||||
| Aginganalysismethod | 429,616,144.67 | 90.28% | 21,764,624.41 | 5.07% | 407,851,520.26 | 521,018,955.26 | 98.58% | 26,295,000.03 | 5.05% | 494,723,955.23 |
| Othercombination | 46,279,809.59 | 9.72% | 46,279,809.59 | 7,493,683.63 | 1.42% | 7,493,683.63 | ||||
| Total | 475,895,954.26 | 100.00% | 21,764,624.41 | 4.57% | 454,131,329.85 | 528,512,638.89 | 100.00% | 26,295,000.03 | 4.98% | 502,217,638.86 |
Provisionforbaddebtbycombination:
Unit:yuan
| Name | ClosingBalance | ||
| Bookbalance | Provisionforbaddebt | Accruingproportion | |
Descriptionofthebasisfordeterminingthecombination:
Provisionforbaddebtbycombination:
Unit:yuan
| Name | ClosingBalance | ||
| Bookbalance | Provisionforbaddebt | Accruingproportion | |
Descriptionofthebasisfordeterminingthecombination:
Ifthebaddebtprovisionofaccountsreceivableiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
?Applicable√Notapplicable
Disclosurebyaging
Unit:yuan
| Aging | Bookbalance |
| Within1year(including1year) | 468,679,968.14 |
| 1~2years | 4,823,718.66 |
| 2~3years | 81,233.50 |
| Morethan3years | 2,311,033.96 |
| 3~4years | 168,509.20 |
| 4~5years | 1,609,931.76 |
| Morethan5years | 532,593.00 |
| Total | 475,895,954.26 |
(2)Provision,recoveryorreversalofbaddebtreservesinthecurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:yuan
| Class | Beginningbalance | Amountofchangeincurrentperiod | ClosingBalance | |||
| Accrual | Recoveredorreversed | Write-off | Others | |||
| Provisionforbaddebtofaccountsreceivable | 26,295,000.03 | 7,720,528.06 | 11,978,909.38 | 271,994.30 | 21,764,624.41 | |
| Total | 26,295,000.03 | 7,720,528.06 | 11,978,909.38 | 271,994.30 | 21,764,624.41 | |
Wheretheamountofbaddebtprovisionrecoveredorreversedisimportant:
Unit:yuan
| Unitname | Amountrecoveredorreversed | Recoveryway |
(3)Accountsreceivableactuallywrittenoffatthecurrentperiod
Unit:yuan
| Item | Amountwrittenoff |
Write-offofimportantaccountsreceivable:
Unit:yuan
| Unitname | Natureofaccountsreceivable | Amountwrittenoff | Reasonsforwrite-off | Write-offproceduresperformed | Whetherthepaymentsarisefromrelatedtransactions |
Descriptionofwrite-offaccountsreceivable:
(4)AccountsreceivablewithTop5endingbalancesbydebtor
Unit:yuan
| Unitname | Endingbalanceofaccountsreceivable | Proportionintotalotherendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| First | 20,789,828.23 | 4.37% | 1,039,491.41 |
| Second | 19,433,438.68 | 4.08% | 971,671.93 |
| Third | 16,772,838.16 | 3.52% | 838,641.91 |
| Fourth | 15,428,180.67 | 3.24% | 771,409.03 |
| Fifth | 10,684,541.47 | 2.25% | 534,227.07 |
| Total | 83,108,827.21 | 17.46% |
(5)AccountsreceivablederecognizedduetotransferoffinancialassetsN/A
(6)AmountofassetsandliabilitiesformedbytransferringaccountsreceivablesandcontinuinginvolvementN/AOtherdescription:N/A
2.Otherreceivables
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
| Otherreceivables | 123,628,108.60 | 218,099,656.42 |
| Total | 123,628,108.60 | 218,099,656.42 |
(1)Interestreceivable
1)Classificationofinterestreceivable
Unit:yuan
| Item | ClosingBalance | Beginningbalance |
2)Importantoverdueinterest
Unit:yuan
| Borrower | ClosingBalance | Overduetime | Overduereason | Whetherthereisimpairmentanditsjudgmentbasis |
Otherdescription:
3)Provisionforbaddebt?Applicable√Notapplicable
(2)Dividendsreceivable
1)Classificationofdividendsreceivable
Unit:yuan
| Project(orinvestedunit) | ClosingBalance | Beginningbalance |
2)Importantdividendsreceivablewiththeagingmorethan1year
Unit:yuan
| Project(orinvestedunit) | ClosingBalance | Aging | Reasonfornon-recovery | Whetherthereisimpairmentanditsjudgmentbasis |
3)Provisionforbaddebt?Applicable√NotapplicableOtherdescription:
(3)Otherreceivables
1)Otherreceivablesclassifiedbynature
Unit:yuan
| Natureofpayment | Endingbookbalance | Beginningbookbalance |
| CompensationforinvestmentandconstructionprojectofHeyuanWinner | 224,655,320.00 | 238,655,320.00 |
| Marginanddeposit | 3,941,268.30 | 5,370,048.01 |
| Exportdrawback | 7,187,293.68 | |
| Employeeprettycash | 592,876.83 | 333,170.12 |
| Intercoursefundswithrelatedparties | 4,688,603.35 | |
| Others | 2,426,136.82 | 2,795,640.07 |
| Total | 236,304,205.30 | 254,341,471.88 |
2)Provisionforbaddebt
Unit:yuan
| Provisionforbaddebt | Stage1Expectedcreditlossesoverthenext12months | Stage2Expectedcreditlossesovertheentireduration(withoutcreditimpairment) | Stage3Expectedcreditlossesovertheentireduration(withcreditimpairment) | Total |
| BalanceonJanuary1,2022 | 36,241,815.46 | 36,241,815.46 | ||
| BalanceonJanuary1,2022incurrentperiod | ||||
| Accrualincurrentperiod | 88,872,051.22 | 88,872,051.22 | ||
| Reversalincurrentperiod | 12,437,769.98 | 12,437,769.98 | ||
| BalanceonDecember31,2022 | 112,676,096.70 | 112,676,096.70 |
Changesinbookbalancewithsignificantchangesinthecurrentperiodofprovisionforloss?Applicable√NotapplicableDisclosurebyaging
Unit:yuan
| Aging | Bookbalance |
| Within1year(including1year) | 8,925,718.50 |
| 1~2years | 2,723,166.80 |
| Morethan3years | 224,655,320.00 |
| 3~4years | 224,655,320.00 |
| Total | 236,304,205.30 |
3)Provision,recoveryorreversalofbaddebtreservesinthecurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:yuan
| Class | Beginningbalance | Amountofchangeincurrentperiod | ClosingBalance | |||
| Accrual | Recoveredorreversed | Write-off | Others | |||
| Provisionforbaddebt | 36,241,815.46 | 88,872,051.22 | 12,437,769.98 | 112,676,096.70 | ||
| Total | 36,241,815.46 | 88,872,051.22 | 12,437,769.98 | 112,676,096.70 | ||
Wheretheamountofbaddebtprovisionreversedorrecoveredisimportant:
Unit:yuan
| Unitname | Amountreversedorrecovered | Recoveryway |
4)Otherreceivableactuallywrittenoffatthecurrentperiod
Unit:yuan
| Item | Amountwrittenoff |
Write-offofimportantotherreceivables:
Unit:yuan
| Unitname | Natureofotherreceivables | Amountwrittenoff | Reasonsforwrite-off | Write-offproceduresperformed | Whetherthepaymentsarisefromrelatedtransactions |
Descriptionofwrite-offofotherreceivables
5)OtherreceivableswithTop5endingbalancesbydebtor
Unit:yuan
| Unitname | Natureofpayment | ClosingBalance | Aging | Proportionintotalotherendingbalancereceivable | Endingbalanceofbaddebtprovision |
| First | ReceivablesrelatedtoHeyuanproject | 224,655,320.00 | 3-4years | 95.07% | 112,327,660.00 |
| Second | Intercoursefundswithrelatedpartieswithinthescopeofconsolidation | 4,688,603.35 | Within1year | 1.98% | |
| Third | Marginanddeposit | 2,311,115.80 | 1-2years | 0.98% | 115,555.79 |
| Fourth | Employeeloan | 123,539.13 | Within1year | 0.05% | 6,176.96 |
| Fifth | Employeeloan | 120,000.00 | Within1year | 0.05% | 6,000.00 |
| Total | 231,898,578.28 | 98.13% | 112,455,392.75 |
6)Accountsreceivableinvolvinggovernmentsubsidies
Unit:yuan
| Unitname | Nameofgovernmentsubsidyproject | ClosingBalance | Endingaging | Estimatedcollectiontime,amountandbasis |
None
7)Otherreceivablesderecognizedduetotransferoffinancialassets
8)AmountofassetsandliabilitiesformedbytransferringotherreceivablesandcontinuinginvolvementOtherdescription:
3.Long-termequityinvestment
Unit:yuan
| Item | ClosingBalance | Beginningbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Investmentinsubsidiaries | 3,530,099,178.63 | 4,086,994.48 | 3,526,012,184.15 | 908,737,678.63 | 4,086,994.48 | 904,650,684.15 |
| Investmentinassociatedenterprisesandjointenterprises | 21,642,696.16 | 21,642,696.16 | 16,949,801.24 | 16,949,801.24 | ||
| Total | 3,551,741,874.79 | 4,086,994.48 | 3,547,654,880.31 | 925,687,479.87 | 4,086,994.48 | 921,600,485.39 |
(1)Investmentinsubsidiaries
Unit:yuan
| Investedunit | Beginningbalance(bookvalue) | Increaseordecreaseincurrentperiod | Endingbalance(bookvalue) | Endingbalanceofimpairmentprovision | |||
| Furtherinvestment | Capitalreduction | Provisionforimpairment | Others | ||||
| WinnerMedical(Huanggang) | 267,491,627.79 | 267,491,627.79 | |||||
| WinnerMedical(Jingmen) | 27,242,761.31 | 27,242,761.31 | |||||
| ShenzhenPurcotton | 130,000,000.00 | 130,000,000.00 | |||||
| WinnerMedical(Chongyang) | 33,629,806.08 | 33,629,806.08 | |||||
| WinnerMedical(Jiayu) | 36,436,595.28 | 200,000,000.00 | 236,436,595.28 | ||||
| WinnerMedical(Tianmen) | 39,697,276.28 | 39,697,276.28 | |||||
| WinnerMedical(HongKong) | 1,456,720.00 | 1,456,720.00 | |||||
| WinnerMedical(Yichang) | 18,595,897.41 | 18,595,897.41 | |||||
| WinnerMedicalMalaysia | 4,086,994.48 | ||||||
| WinnerMedical(Heyuan) | 100,000,000.00 | 100,000,000.00 | |||||
| WinnerMedical(Wuhan) | 100,000,000.00 | 300,000,000.00 | 400,000,000.00 | ||||
| PureH2B | 150,000,000.00 | 150,000,000.00 | |||||
| PureHB(Shanghai) | 100,000.00 | 100,000.00 | |||||
| LongtermMedical | 727,540,000.00 | 727,540,000.00 | |||||
| WinnerGuilin | 450,000,000.00 | 450,000,000.00 | |||||
| WinnerMedical(Hunan) | 751,921,500.00 | 751,921,500.00 | |||||
| JunjianMedical | 192,000,000.00 | 192,000,000.00 | |||||
| Total | 904,650,684.15 | 2,621,461,500.00 | 100,000.00 | 3,526,012,184.15 | 4,086,994.48 | ||
(2)Investmentincooperativeenterpriseandjointventures
Unit:yuan
| Increaseordecreaseincurrentperiod | Endingbalanceofimpairmentprovision | ||||||||||
| Investedentity | Beginningbalance(bookvalue) | Furtherinvestment | Capitalreduction | Investmentgainsandlossesrecognizedbytheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Declaredpaymentofcashdividendsorprofits | Provisionforimpairment | Others | Endingbalance(bookvalue) | |
| I.Jointventures | |||||||||||
| II.Cooperativeenterprise | |||||||||||
| ChengduWinner | 16,949,801.24 | 4,692,894.92 | 21,642,696.16 | ||||||||
| Subtotal | 16,949,801.24 | 4,692,894.92 | 21,642,696.16 | ||||||||
| Total | 16,949,801.24 | 4,692,894.92 | 21,642,696.16 | ||||||||
(3)Otherdescription
4.Operatingincomeandcost
Unit:yuan
| Amountincurredincurrentperiod | Amountincurredinpreviousperiod | |||
| Item | Income | Cost | Income | Cost |
| Mainbusiness | 6,424,434,990.51 | 4,145,092,045.28 | 3,750,575,739.60 | 2,431,548,447.53 |
| Otherbusinesses | 100,457,781.31 | 16,415,328.66 | 46,506,912.98 | 6,176,043.52 |
| Total | 6,524,892,771.82 | 4,161,507,373.94 | 3,797,082,652.58 | 2,437,724,491.05 |
Incomerelatedinformation:
Unit:yuan
| Contractclassification | Segment1 | Segment2 | Total |
| Typeofgoods | |||
| Including: | |||
| Classifiedbyoperatingarea | |||
| Including: | |||
| Typeofmarketsorclients | |||
| Including: | |||
| Typeofcontracts | |||
| Including: |
(continued)
| Contractclassification | Segment1 | Segment2 | Total |
| Sortedbytimeofgoodstransfer | |||
| Including: | |||
| Sortedbycontractduration | |||
| Including: | |||
| Sortedbysaleschannels | |||
| Including: | |||
| Total |
Informationrelatedtoperformanceobligations:noneInformationrelatedtothetransactionpriceapportionedtotheremainingperformanceobligations:
TheamountofincomecorrespondingtotheperformanceobligationssignedbutnotyetperformedorcompletedattheendofthisreportingperiodisRMB0.00,ofwhichRMB0.00isexpectedtoberecognizedasrevenueinyear0,RMB0.00isexpectedtoberecognizedasrevenueinyear0,andRMB0.00isexpectedtoberecognizedasrevenueinyear0.Otherdescription:
5.Investmentincome
Unit:yuan
| Item | Amountincurredincurrentperiod | Amountincurredinpreviousperiod |
| Long-termequityinvestmentincomecheckedbycostmethod | 699,939,868.87 | |
| Long-termequityinvestmentgainsmeasuredbyemployingtheequitymethod | 4,692,894.92 | 3,525,570.83 |
| Investmentincomefromthedisposaloftradablefinancialassets | 6,708,135.26 | 70,324,759.75 |
| Investmentincomefrompurchasingfinancialproducts | 15,949,400.16 | 15,019,953.42 |
| Total | 727,290,299.21 | 88,870,284.00 |
6.Others
XVIII.FurtherInformation
1.Statementofcurrentnon-recurringgainandloss
√Applicable?Notapplicable
Unit:yuan
| Item | Amount | Description |
| Profitandlossondisposalofnon-currentassets | (39,993,220.64) | |
| Governmentsubsidiesincludedintocurrentprofitsandlosses,exceptthegovernmentsubsidieswhicharecloselyrelatedtothenormalbusinessoperationsoftheCompanyandconformtothenationalpoliciesandregulations,andcontinuouslygrantedinaccordancewithacertainstandardquotaoramount. | 84,859,103.35 | |
| InadditiontotheeffectivehedgingbusinessrelatedtotheCompany'snormalbusinessoperations,theprofitandlossfromfairvaluechangesarisingfromholdingtradingfinancialassets,tradingfinancialliabilities,aswellastheinvestmentincomefromdisposaloftradingfinancialassets,tradingfinancialliabilities,andsalablefinancialassets. | 78,921,808.85 | |
| Incomeandexpenditureotherthanthosementionedabove | (13,810,132.25) | |
| Less:Amountaffectedbyincometax | 17,067,455.98 | |
| Amountofminorityshareholders'equityaffected | 3,242,648.98 | |
| Total | 89,667,454.35 | -- |
Otherprofitandlossitemsthatareconsistentwiththedefinitionofnon-recurringprofitandloss:
?Applicable√NotapplicableTherewasnootherprofitandlossitemsthatareconsistentwiththedefinitionofnon-recurringprofitandloss.Explanationondefiningthenon-recurringprofitandlossitemsenumeratedintheInterpretativeAnnouncementNo.1onInformationDisclosureofPublicSecuritiesIssuingCompanies-Non-recurringProfitsandLossesasrecurringprofitandlossitems?Applicable√Notapplicable
2.Returnonnetassetsandearningspershare
| Reportingprofit | Weightedaveragereturnonnetassets | EarningsPerShare | |
| BasicEPS(yuan/share) | DilutedEPS(yuan/share) | ||
| NetprofitattributabletocommonshareholdersoftheCompany | 14.89% | 3.90 | 3.90 |
| NetprofitattributabletocommonshareholdersoftheCompanyafterdeductionofnon-recurringprofitsandlosses | 14.08% | 3.69 | 3.69 |
3.DifferencesinAccountingDataunderDomesticandForeignAccountingStandards
(1)ThedifferencebetweennetprofitsandnetassetsinthefinancialstatementsdisclosedaccordingtotheInternationalAccountingStandards(IAS)andChineseAccountingStandardssimultaneously?Applicable√Notapplicable
(2)ThedifferencebetweennetprofitsandnetassetsinthefinancialstatementsdisclosedaccordingtotheOverseas
AccountingStandardsandChineseAccountingStandardssimultaneously?Applicable√Notapplicable
(3)Causesfordifferencesinaccountingdataunderdomesticandforeignaccountingstandards.Ifthedifferenceadjustment
hasbeenmadetothedataauditedbytheoverseasauditinstitution,thenameoftheoverseasauditinstitutionshallbe
indicatedNone
4.Others
None
V.