稳健医疗：2023年度环境、社会及管治报告（英文版）

Deserts and Cotton FieldsStock code: 300888Environmental, Social and Governance ReportWinner Medical Co., Ltd.About This ReportOverviewAbbreviationsThis is the second environmental, social and governance (ESG) report and also the fourth corporate social responsibility (CSR) report of Winner Medical Co., Ltd. This report truly and objectively discloses the efforts of Winner Medical and its subsidiaries to perform its corporate social responsibilities in 2023, and focuses mainly on the disclosure of the Company's ESG performance.Reporting ScopeReporting Period: January 1,2023 to December 31,2023 (hereinafter referred to as the "Reporting Period"). Unless otherwise specified, this report is prepared on an annual basis.Basis of PreparationThe Sustainable Development Goals (SDGs) CompassGRISustainability Reporting Standards (GRIStandards） by Global Sustainability Standards BoardGuidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0) by China Academy of Social SciencesGuidelines of Shenzhen Stock Exchange on Social Responsibility of Listed CompaniesThe Guidelines No.2 on Self-Regulation of Companies Listed on Shenzhen Stock Exchange - Standardized Operation of Listed Companies of the ChiNext MarketGuidance on Social Responsibility Reporting (GB/T 36001-2015)Confirmation and ApprovalThis report has been approved by the Board of Directors on April 23,2024 after being confirmed by the management.Report AccessThe simplified Chinese version of this report is available for readers to reference. The electronic version of this report can be downloaded from our official website (.cn).Abbreviation Full NameWinner Medical, the Company, or "we "Winner Medical Co., Ltd. (reporting entity)Purcotton Shenzhen Purcotton Technology Co., Ltd.Longterm Medical Zhejiang Longterm Medical Technology Co., Ltd.Winner Medical(Huanggang) Winner Medical (Huanggang) Co. Ltd.Winner Medical(Jingmen)Jingmen Winner Medical Textile Co., Ltd.Winner Medical(Jiayu) Winner Medical (Jiayu) Co. Ltd.Winner Medical(Wuhan) Winner Medical (Wuhan) Co. Ltd.Winner Medical(Chongyang) Winner Medical (Chongyang) Co. Ltd.Winner Medical(Tianmen) Winner Medical (Tianmen) Co. Ltd.Winner Medical(Shenzhen) Winner Medical (Shenzhen) Co. Ltd.Winner Guilin Winner (Guilin) Latex Products Co., Ltd.Winner Pingan Winner Pingan Medical (Hunan) Co., Ltd01 03 07 09Message from ChairmanAbout UsESGManagement73 74 77 80OutlookIndexESGKey Performance IndicatorsFeedbackCONTENTSCSRSpotlight17Improving Corporate GovernanceOperating in Compliance with Laws and Regulations19 23Conducting Prudent Governance to Build a Solid Development Foundation27 31 35 39 43Strengthening R&DCapabilitiesPursuing Premier QualityEnhancing Customer ServiceEnsuring Work SafetyAdvancing Together with Partners25 Pursuing Excellenceto Spearhead Industry Advancement47 49 51 53 55 57Enhancing Environmental Management Combating Climate ChangeOptimizing Resource and Energy UseEnhancing Emission ManagementPromoting Green PhilosophyPracticing Green Development to Embrace Low-Carbon Lifestyle61 64 67 70Keen on Public Welfare and CharityProtecting Employee Rights and InterestsSupporting Employee GrowthCaring for the Life of Employees59 Giving Back to the Societyto Build a Harmonious Society TogetherFostering a Sustainable Business Model for Sound Industry GrowthMessage from ChairmanOver thirty-three years for Winner Medical and fifteen for Purcotton, we have gone through four economic cycles, and thrived in challenging times, beginning with a small piece of gauze and evolving into a national high-tech enterprise that integrates research, development, production, and sales. Our success stems from steadfast adherance to our core principle that "quality is superior to profit; brand is superior to speed; social responsibility is superior to corporate value, " coupled with a strong commitment to sustainable development.Committed to the six pillars of a "century-old enterprise," we uphold our culture and values, adhere to leadership driven by products, and pursue excellence in operations. In line with the principle of integrated operations, we fulfil our responsibilities and inspire utmost resilience. At Winner Medical, social responsibility fulfilment is not just a long-term commitment but the inevitable path towards sustainable development.We believe that a symbiotic and mutually prosperous relationship between corporate and social values, the commitment to innovation in social responsibility and the creation of environmentally friendly products, will unlock wider and more diverse opportunities for innovation, further paving our way towards sustainable development.Consolidating the Operating Foundation with Responsibility to Pursue Sustainable SuccessWe hold that strategic direction sets our course, brand building energizes our development, integrity wins us trust, corporate culture unites us all, and a commitment to responsibility builds our foundation for future growth. In 2023, we steadfastly pursued our core strategy: leading products and excellent operation. In product development, we expanded our product portfolio through innovation and quality enhancement. Centring around our core technology, pure cotton spunlaced non-woven fabric, we have developed various new products made from cotton, such as cotton soft tissues developed through special processing, all-cotton core sanitary napkins, cotton diapers, surgical gowns, surgical kits, and fenestrated sheets, ensuring the health and well-being of consumers. Our innovative foam dressing product was included in the Shenzhen standard catalogue for certified medical devices, marking a significant milestone. Our Purcotton gauze bath towel, the industry’s first certified towel without softener, set a new standard in product excellence. Operational advances were marked by extensive digital transformation and intelligent upgrades, significantly enhancing the automation and efficiency of our production equipment. Our Model Plant for Intelligent Medical Textile Manufacturing of Winner Medical (Wuhan) Co., Ltd. distinguished itself as a leading case of intelligent manufacturing in 2023, earning high praise from the Ministry of Industry and Information Technology.Safeguarding the Ecology and Innovating to Lead Low-carbon DevelopmentWe are committed to developing green products and advocating for the value of sustainability and environmental protection, aiming to mobilize the entire industrial chain to embrace environmental stewardship. Over the past year, we embraced a multifaceted approach. From research and development to production, we conserved significant water resources and reduced emissions using innovative technologies and processing techniques like anhydrous processing, gauze washing with atomized water, and plant-based dyeing. Moreover, we actively promoted the construction of green plants. Notably, Winner Medical (Wuhan) earned the "Green Plant" accolade, a testament to its exemplary contributions to energy conservation, emission reduction, recycling, and environmental protection. Our green packaging initiative, the Zero Plastic Initiative, replaced plastic bags with 48.05 million non-woven reusable shopping bags, significantly furthering our commitment to a better environment.Keeping Society in Mind and Continuously Showing the Strength of CottonWe firmly believe that shouldering social responsibility and giving back to our employees and the society are foundational to sustainable development. In 2023, we actively engaged with the "Power of Purcotton" initiative. Collaborating with our partners across the industrial chain, we worked to overcome challenges, helping to address issues of excess raw material inventory and unsold products. To give back to the society, in December 2023, in response to a 6.2-magnitude earthquake in Jishishan County, Gansu Province, we rapidly dispatched rescue supplies worth nearly RMB 3 million to aid those affected by the disaster. Additionally, our concern for vulnerable groups, including children and the elderly, led us to organize healthcare knowledge sessions at institutions such as Luoba Middle School and Baishida Primary School in Shixing County, Shaoguan City, and to provide nursing supplies to nursing homes. The total value of our contributions over the year amounted to approximately RMB 7 million, demonstrating our dedication to fostering a healthier and more comfortable life enriched by the compassionate spirit of Purcotton.Having navigated beyond countless challenges, we are now advancing swiftly and unfettered. The year 2024 unfolds, brimming with both promise and obstacles. As we face faster market shifts, environmental changes, and technological advances, we remain committed to progressing with the times and staying ahead of the curve. We aim to convert ideas into opportunities, dreams into plans, and plans into actions. United by a shared vision, we will forge ahead, collectively uphold our responsibilities, and strive for high-quality and sustainable development.Chairman and General Manager of Winner MedicalLi Jianquan01022023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.0304About Us ESGManagement CSRSpotlightMessage from ChairmanAbout Us Strategic VisionCorporate CultureCompany ProfileWinner Medical, headquartered in Shenzhen, Guangdong Province, China, is a healthcare company that realizes the coordinated development of the medical and consumer sectors through its two major brands, including "Winner Medical" and "Purcotton". With innovation and expansion, Winner Medical has extended its business to fields like medical and health care, personal care, home care, maternal and child care, home textiles and apparel. Its products have obtained certification from the CE, FDA, and the Ministry of Health and Welfare of Japan. The Company has 30 primary and secondary wholly-owned and holding subsidiaries.With a professional R&D team that combines theory and practice, Winner Medical has made innovations and breakthroughs through years of painstaking research on the production process and product characteristics of medical consumables, and has established a medical-grade quality management system early in the industry and passed the ISO 13485 medical device quality management system certification. Our medical dressings have been sold in more than 110 countries worldwide. As of December 31,2023, the Company has obtained a total of 1,375 patents, including 140 invention patents,810 utility model patents, and 425 design patents.Starting with pure cotton spunlaced non-woven fabric, Purcotton is a healthy lifestyle brand with "Close to medical science with 100% cotton care" as the brand concept and "Medical background/Purcotton philosophy/quality in our DNA" as the core competitiveness. Its products include non-woven consumer products such as pure cotton soft towels, pure cotton top sheet sanitary napkins and pure cotton wet wipes and woven consumer products such as baby products, baby clothing, and home textiles. Purcotton advocates a comfortable, healthy, and environmentally friendly concept by replacing chemical fibre with cotton to keep away from chemical irritation and providing total solutions for different life scenarios. With such efforts, Purcotton has harvested a sound reputation among users, developed a fully differentiated brand image in the field of consumer products and built a strong brand appeal.Since its inception, no matter how the external environment changes, the three core principles of "quality is superior to profit; brand is superior to speed; social responsibility is superior to corporate value" have always been rooted in our hearts. From the present to the medium to long term, China and even the world are facing enormous challenges and changes. In 2023, Winner Medical focused on three core principles, embraced new changes, met new opportunities, and responded to new environments with a more active and open attitude. We also challenged new markets, created new technologies, and developed new products to embrace new consumption trend. Firmly delivering the core strategic idea of "Leading Products and Excellent Operation", we steadily moved forward the high-quality development.Purcotton changes the worldLeading a healthy lifestyle with a trusted brandDelight Customers, Care for Employees, Hard Work and InnovativeVision VisionCaring for health and life, making a better worldMission MissionLeading the trend of big health and achieving harmony between people and the environmentValues ValuesHard work, innovative, self-criticism, and sustainable developmentWe optimized the category structure and product portfolio, gradually upgraded and increased investment in traditional medical products and enhanced the competitiveness of traditional conventional products around the core three features. We created popular products/singles, such as surgical packs, wound caring, infection protection, cleaning and disinfection, and infusionmasks, surgical gowns/bags, and foam dressings, and provided solutions based on users' pain points in specific scenarios. At the same time, we continued to upgrade and make breakthroughs in basic materials, tackled product functional defects and other problems, and promoted industry-university-research cooperation and the implementation of national/provincial innovation platform projects.We strengthened branding, Wemedia operations and other publicity and communication coverage to establish the No.1 image of the professional medical brand and attract the eyes of users; upgraded the product channel portfolio strategy by focusing on domestic and overseas key hospitals, pharmacies and large customers and conducting cooperation in land, sea and air transportation, further developed customers and controlled the end-user market for mutual benefits with all partners.We summarized our experience during the COVID-19 pandemic and turned our ability to decide, collaborate, respond and execute quickly into daily capabilities. We also improved the integration of multiple categories for new business acquisitions and accelerated the deep integration of products, technology, marketing and operations to promote the convergence of terminals and maximize value for strategic development.0304About UsWinner MedicalLeading ProductsExcellent OperationQuality is superior to profit; Brand is superior to speed; Social responsibility is superior to corporate valueBusiness principles2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.0506About Us ESGManagement CSRSpotlightMessage from ChairmanProduct MatrixFor over three decades, Winner Medical has embarked on its journey with cotton as a starting point, continuously innovating and growing into a pioneering enterprise that seamlessly integrates research and development, production, and sales. Today, the Company boasts a robust framework where medical dressings and consumer goods are developed in tandem, with both the "Winner Medical" and "Purcotton" brands flourishing side by side.The "Ten Adherences" of Winner MedicalTen AdherencesOur main product linesAbout UsPurcottonLeading ProductsExcellent OperationPurcotton is dedicated to material innovation and committed to the research and development of basic materials and cotton cultivation. By utilizing cotton/genetic modification and technological application, we unlock the full potential of cotton, empowering pure cotton products with technology so as to bring safe, happy and sustainable lives to users. We also clearly focus on five strategic products to establish an absolute advantage in the market. Through the promotion of popular products and scene-specific market penetration, we have gradually shaped the brand soul of "All Categories of Cotton". Additionally, we concentrate on our popular products and simplifying our operations, thus increasing the overall efficiency of our company and maintaining our product leadership.With a focus on improving user traffic, conversion and unit price of key categories in various channels, we carried out work and capacity building in branding, marketing, channels and retail; we won the battle of branding for new customer acquisition and focused on serving Purcotton's consumer groups; we further developed channels by expanding franchisees while strengthening basic management; we accelerated breakthroughs in digital transformation capabilities, completed the digitalization of commodities, consumers and channels, upgraded the digital system integrating the three major systems, and developed the capacity to build the core business integration process to achieve simplification, visualization and standardization.Adhere to following the the guidance of the PartyAdhere to having the entire motherland in mindAdhere to exploring and innovatingAdhere to self-criticismAdhere to the Three PrioritiesAdhere to keeping up with the timesAdhere to altruismAdhere to excellent operationsAdhere to customer-oriented strategyAdhere to hard work and struggleDuring the Reporting Period, Winner Medical's WINDESG rating improved from BBB to A, and its Guosen Securities ESG rating achieved AAA, ranking the top of the textile, apparel, and luxury industryWinner Medical was listed on the "Top 100 China Listed Company Health Index in 2022"Rated as "Best Practice Award for Board Office of Listed Companies" by China Association for Public Companies for two consecutive yearsThanks to our Model Plant for Intelligent Medical Textile Manufacturing of Winner Medical (Wuhan), Winner Medical was honoured as the "leading unit of 2023 Intelligent Manufacturing Model Plants" selected by the Ministry of Industry and Information TechnologyWinner Medical (Wuhan) received the"Green Plant" honorary title from the Ministry of Industry and Information TechnologyWinner Medical was recognized in the "List of Health Industry Brands in 2023" at the 16th CPEO, winning "CPEOGold Award" for the third year in a rowP u r c o t t o n w a s b e s t o w e d w i t h t h e "Pioneering Award of Talent Management Reform in China in 2023"The "Biodegradable Nano Mask" project by Winner Medical was awarded the Sustainability and Innovation Award (2023) by the International Textile Manufacturers FederationRated as "Excellent ESGCase Study of Listed Companies" by China Association for Public Companies for three consecutive yearsW i n n e r M e d i ca l a n d P u rcotto n w o n CSR award at China Corporate Social Responsibility Forum for two consecutive years2023Awards·Medical cotton ·Cotton soft tissues·Sanitary napkins·Face masks·Baby loungewear·Adult loungewear·Silicone dressings·Surgical gloves·Surgical gloves·Incontinence care·Injection and puncture products ·Bedding·Gauze ·wet wipes, etc.·Period brief, etc.·Cotton pads·Baby bath towels·Outwear·Cotton diapers, etc.·Baby blankets, etc.·Underwear, etc.·Alginate dressings·Surgical kits·Surgical kits·Oral and nasal products·Test kits, etc. ·Toiletries, etc.·Bandages, etc.·Superabsorbent dressings, etc.·Surgical gowns, etc.·Surgical gowns, etc.·Hand-free disinfectant gels, etc.Traditional wound care and dressing productsBabyclothing&accessoriesAdvancedwounddressingsOther non-woven productsOperating roomconsumablesInfection protectionPersonal CareSanitary napkinsOther productsWet and dry cotton soft tissuesOtherwoven productsAdultclothingMedical consumablesHealth consumer productsWinner Pingan Winner GuilinPurcottonWinner MedicalLongtermMedical2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.0708About Us ESGManagement CSRSpotlightMessage from ChairmanESGManagementUnder the leadership of the Strategy and Social Responsibility Committee, Winner Medical focuses on environmental, social and governance topics and has established an operational management mechanism covering all its departments to make regular information disclosures, and improved and implemented its ESG management rules and regulations.Stakeholder CommunicationThe Company attaches great importance to corporate social responsibility work, fully considers the demands of stakeholders, and makes responses through channels and means such as websites, meetings, reports, events and media. We also maintain communication with them via those channels.Material Topics IdentificationSteps for identificationMateriality matrixThe Company follows the path of "topic identification, topic research, topic selection, and topic response" to identify key material topics from the dimensions of "significance to the Company's strategy" and "degree of concern to stakeholders", and disclose them in the report.Systematically sort out legal policies and industry hotspots, benchmark against peer ESG practices, and combine with the Company's reality to form a topic library.Distribute questionnaires to internal and external stakeholders, collect and screen valid questionnaires, and conduct topic evaluation and analysis.Give key disclosure of material topics in the report to respond to stakeholders.Evaluate and prioritize topics from two dimensions: "significance to the Company's strategy" and "degree of concern to stakeholders", and screen and identify key material topics议题筛选Degree of Concern to StakeholdersSignificance to the Company's Strategy1 2 34 5 6 7 8 9 10 18 19 17 20 14 15 13 16 11 12Key stakeholders Topics of concern Communication and responseShareholders and senior management·Economic performance ·Corporate governance·Compliance and risk control·Business ethics·General meeting of shareholders·Board of directors·Financial reports·Business reports·Corporate governance·Business ethics·Environmental management·Waste discharge·Regular communication and reporting·Institutional research·Policy implementation·Information disclosure Partners·Supply chain management·Technology R&D innovation·Product quality·Industry conferences·Strategic Cooperation·Exchange and visitsCommunity, the public and media·Eco-environmental protection·Community benefit·Community volunteer activities·Social welfare projects·Social undertaking supportive projectsCustomers·Product quality·Customerservice·Responsible marketing·Green packaging·On-site communication·Market research·Customer satisfaction surveyEmployees·Employee rights and benefits·Employee development and training·Occupational health and safety·Employee activities·Employee training·Corporate intranet·Employee handbookCorporate governance Addressing climate change Product quality and safetyTalent introduction Community public welfareShareholder and investor interestsEnvironmental management Responsible marketing Employee rights and benefits Technology R&D and innovationCompliance and risk controlEnergy and water managementCustomer service Occupational health and safetySupply chain managementBusiness ethics and anti-corruption Hazardous emissions and wastesPrivacy and data security Employee development and trainingPromoting industry exchanges1 3 2 4Governance5 7 6 8 9 11 10 12 13 15 14 16Government and regulators3ESGManagementRoadshows and communication with the Company4Topic response2Topic research1 3Topic IdentificationTopic selectionEnvironmental protectionProducts and servicesStaff development17 19 18 20Community development and cooperation2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.0910About Us ESGManagement CSRSpotlightMessage from ChairmanSince its inception, Winner Medical has consistently upheld its core principle, "quality is superior to profit; brand is superior to speed; social responsibility is superior to corporate value". We strive for the organic unity and dynamic balance among business, environmental, and social benefits, integrating sustainability into our corporate strategy. This approach promotes benign development across the value chain and helps build our sustainable business model in both our operations and throughout the industrial chain. Our commitment to green development parallels our pursuit of business advancement."Winner" (steadiness) underpins our company’s ethos, symbolizing both our commitment to stable growth and our drive towards constant innovation and development. Winner Medical steadfastly responds to national policies, weaving sustainability into our development strategy. We continually refine our product mix and category structure, and enhance our internal management systems. We have evolved into a conglomerate that encompasses branding, research and development, production, sales, and service, dedicated to bolstering operational stability and advancing towards high-quality development.The Company champions a development vision of "caring for health and life, making a better world", grounding the brand with sustainable business model. We embrace altruism and a long-term philosophy, proactively fulfilling our social responsibilities. Starting from raw materials, the Company is committed to providing the highest quality products and services, allowing more consumers to understand the sustainable value of cotton and fully integrate themselves into social and environmental sustainability.Enhancing farmers’ employment opportunitiesActively deploying renewable energy Optimizing a diverse and inclusive workplace Reducing greenhouse gas emissionsSupporting desert cotton plantingConstructing green, smart plantsSupporting cross-regional procurement for balanced regional developmentEnhancing the performance evaluation systemTransforming desert ecology and regulating regional microclimatesParticipating in community governanceEnhancing community life quality Prioritizing technological innovation in sustainable productionCaring for girls in remote mountainous areas Developing healthcare products and everyday essentialsMaking donations to support the establishment of rural schoolsUpholding gender equality in employmentUtilizing water-saving production technologiesDonating healthcare supplies to vulnerable groupsLaunching joint talent training with colleges and universitiesSupporting the Shenzhen Women and Children’s Development Foundation Implementing smart water-saving systemsImplementing differentiated talent training programs Launching public welfare projects for womenIncreasing the proportion of female management continuouslyRegularly monitoring and assessing safety factors in workshopsSupporting agricultural advancementsDonating essential living suppliesResponding to the UNSDGsEmbracing a Long-Term Philosophy and Promoting SustainabilitySustainable brand philosophy Commitment to social responsibilityAt the 2023 Wuzhen Health Conference and the Second China Over the Counter (OTC) Conference, the initiative chi Forest Refreshment: 'Win' the College Entrance Exam" of Winner Medical was lauded with the "West Lake Award Innovative Marketing Case."Winner Medical was recognized in the "List of Health Industry Brands in 2023" at the 16th CPEO, winning "CPEOGold Award" for the third year in a row.Awards0910CSRSpotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. About Us ESGManagementMessage from ChairmanCSR SpotlightFostering a Sustainable Business Model for Sound Industry GrowthReducing water pollution and protecting the water environment as aquatic habitatsAvoiding land use conversion that harms biodiversitySupporting ocean plastic reductionAdvocating for the protection of endangered speciesAbiding by national and international legislationImproving modern, transparent, and sustainable corporate governance Forming a “community of shared interests” with the government, financial institutions, social organizations, community residents, and various partners across the industrial chainIncorporating environmental, social, and regional development goals into corporate strategiesConducting supplier management trainingAchieving low-carbon product certification2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.1112About Us ESGManagement CSRSpotlightMessage from ChairmanNon-woven reusable shopping bags distributed48.05millionProducts certified as "China Green Products"36The Company leads in creating green products with cutting-edge design concepts. Our commitment to standardization, recyclability, reduction, and harmlessness steers our transmission of green and sustainable models through products. Meanwhile, we have actively promoted the "Zero Plastic Initiative" sustainable packaging solutions, and have formulated a green development plan for products such as the deplasticization of pure cotton packaging materials and the manufacturing of shopping bags with noil fibres. We pursue the organic unity and dynamic balance of product models in terms of economy, society, and environment. This approach exemplifies our dedication to seamlessly blending economic, social, and environmental considerations for holistic and balanced progress.CaseCasePurcotton implements "Zero Plastic Initiative"Launch of the ECOLOGY series to support endangered animalsPurcotton has committed to extensive "plastic reduction" efforts, including standardizing packing box dimensions, replacing disposable packaging, and enhancing packaging recyclability. In 2023, we achieved a significant milestone by removing plastic from 2,040 products across over 40 categories within our consumer goods portfolio. This included essential items such as baby super soft cotton tissues, gauze bath towels, and sanitary napkins, with an annual sale of 16.48 million pieces. The initiative extended to a wide array of products, including cotton soft tissues, disposable underwear, tampons, sanitary napkins, period briefs, gauze quilts, bedding sets, duvets, sleeping bags, bedspreads, and gauze square towels, further reducing the environmental impact of our product packaging.In a bid to promote environmental consciousness, Purcotton introduced the ECOLOGY series, a line of clothing inspired by endangered animals. This series uses natural cotton as a medium to reflect the true essence of ocean, forest, land, and cotton. The ECOLOGY series underscores our dedication to protecting endangered species and maintaining ecological balance, conveying a powerful message of sustainable philosophy.Purcotton’s plastic-free packaging2023 Summer ECOLOGYSeries"Hello Cotton Color" Exhibition highlights cotton's sustainable beauty and ecological valueWitnessing women's power in choices and changesIn August 2023, Purcotton's "Hello Cotton Color" flash exhibition was unveiled at Chengdu's Vientiane City. Drawing inspiration from the hues of cotton, the exhibition invited visitors into an expansive space where science, humanities, and art converge. Here, attendees experienced the vibrant essence of cotton, engaging with the brand's message that "everything, from raw materials to colors, is derived from nature." This event effectively communicated cotton's sustainable and ecological significance.With the continuous development of society, more and more outstanding women are breaking through the barrier of bias，demonstrating their remarkable growth and contributions. Women are not only participants in society, but also important driving forces in the field of technological innovation. In 2023, Purcotton teamed up with China Women's News and Shixiang. Xin to launch the fourth episode of the original documentary series "What She has Changed". The story is about the first female navigator in China to cross the Arctic Ocean - Bai Xiang'en, which aims to inspire more women to bravely pursue their dreams and believe that their power can change the world like Bai Xiang'en."China Green Product" Certification CertificateOriginal Documentary Series "What She had Changed""Hello Cotton Color" Exhibition11million+ Pieces of cotton garments and bedding sold, mitigating the environmental impact typically associated with the production of equivalent synthetic fiber products83.17Through steadfast commitment and innovative contributions to social responsibility, Winner Medical and Purcotton were honoured with the "2023 CSRAward" at the 19th China Corporate Social Responsibility Forum.12CSRSpotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. About Us ESGManagementMessage from ChairmanAwardsSustainable product philosophy Championing environmental protectionCaseCase2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.1314About Us ESGManagement CSRSpotlightMessage from ChairmanSince our founding, Winner Medical has been dedicated to the mission of "leading the trend of big health and achieving harmony between people and the environment," steadfastly following our core strategy of "Leading Products and Excellent Operation" to empower users with our medical expertise. Through our brands, Winner Medical and Purcotton, we achieve a synergistic development of medical and consumer sectors. This dual approach ensures comprehensive health protection for our users across all scenarios.Cotton is celebrated not only for its comfort but also for its environmental friendliness, playing a crucial role in preserving Earth's ecology. Purcotton has been upholding its vision of "Purcotton Changes the World" and the mission of " leading a healthy lifestyle with a trusted brand" for years. We source high-quality cotton from around the globe as our primary raw material and maintain strict control over every production link.At Purcotton, the Company's innovation and research center around cotton and align with market demands. Our range spans non-woven consumer goods like 100% cotton soft tissues, sanitary napkins with a 100% cotton surface, and 100% cotton wet wipes, as well as textile products including baby supplies, and children’s and adult apparel. This diversity caters to various consumer groups, including children, infants & moms and adults, covering user engagement across multiple categories and earning accolades from our customers.In April 2023, Winner Medical and Purcotton showcased at the 2023 World Health Expo, comprehensively displaying the Company's product matrix around medical and consumer scenarios. Engaging with attendees, we demonstrated Winner Medical's innovation, product excellence, and brand strength from all perspectives, earning the "Contribution Award" at the Expo.In November 2023, the " Biodegradable Nanofiber Mask" project by Winner Medical was honoured with the Sustainability & Innovation Award by the International Textile Manufacturers Federation, one of only five projects globally to receive this distinction. This environmentally friendly mask, made from bio-based materials, achieves a degradation rate of over 95%, significantly lessening environmental impact. Moreover, it stands out for its stability in filtration efficiency, breathability, and comfort.In October 2023, Purcotton released the enhanced cotton soft tissues to the market. This product features ultra-soft, thick cotton spunlace non-woven fabric, made from 100% natural cotton and 33% thicker than standard options. Designed for durability and repeated use without tearing easily, it meets the diverse needs of consumers across various scenarios.2023 World Health ExpoOur " Biodegradable Nanofiber Mask" received the Sustainability & Innovation Award of ITMFAward 2023 Purcotton’s cotton soft tissues with extra size and thickness1314CSRSpotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. About Us ESGManagementMessage from ChairmanPrioritizing Quality and Innovating in Sustainable LayoutCaseShowcasing our product matrix at the 2023 World Health ExpoWe are dedicated to enhancing our industrial layout by expanding business lines, continuously refining our category structure and product portfolio. We are investing in and upgrading traditional medical products, boosting the competitiveness of conventional offerings based on three core characteristics. By addressing user pain points in specific scenarios, we offer targeted solutions to promptly meet market demands.As we enhance our products’ market penetration and market share, the Company remains committed to its social values and focuses on the sustainable, long-term development of the Company. Our primary product lines span wound care, infection control, and personal health care. This includes advanced wound dressing products, traditional wound care and dressings, operating room consumables, infection protection products, and personal health care items.Medical sector strategyConsumer sector strategyEmpowering users with medical expertiseLeading a healthy lifestyleCaseCaseWinner Medical's " Biodegradable Nanofiber Mask" earns international accoladePurcotton develops innovatively 100% natural enhanced cotton soft tissues, to improve the quality of healthy life2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.1516About Us ESGManagement CSRSpotlightMessage from ChairmanWinner Medical’s "end-to-end, full-chain integration" approach for cotton productsUpstream: Cultivation Midstream: Processing Downstream: ApplicationOur ActionsResultsincrease in our organic cotton usagePlanting bases for upstream cotton purchasingSince 2016 10twentyfold roughlycotton planting area200,000muCotton farmers involved6,000 10%annual consumptionProportion to the national output3,000 tons Partnering with suppliers on organic cotton projects to advocate for organic practices, eliminating the use of harmful pesticides and fertilizers, and expanding the use of organic cotton.Championing the"contract farming" model, we’ve collaborated with Hubei province to cultivate cotton on idle lands, enhancing land utilization.By purchasing over conventional cotton, we’ve contributed an additional RMB 12 million to the industrial chain.This initiative spans 1,500 mu of land, purchasing seed cotton at prices 8% above market rates to boost farmers’ earnings.Working with textile suppliers known for their exceptional environmental practices, and adopting water and energy-efficient technologies to aim for industry-wide reductions in energy and resource consumption.Low-temperature pretreatment technology results in savings of 79% in steam,50% in water, 33% in electricity, and 78% in carbon emissions.High-efficiency washing technology further achieves a 25% reduction in steam usage,29% in water, and 28% in carbon emissions.Launching the industry’s first all-cotton soft tissue, along with additive-free cotton wet wipes, sanitary napkins featuring cotton from the pad to the wings, the first 100% cotton baby diapers, high-cotton-content seamless underwear, and all-cotton gauze bath towels without softeners, filling multiple market gaps for cotton products.With over 67.3 billion cotton tissues sold and 320,000 tons of cotton purchased, Purcotton has facilitated the improvement of the planting area, yield, and quality of cotton in Xinjiang..As a key player and leader in the cotton industry chain, the Company has established a distinctive position with Chinese characteristic within the global cotton industry based on its two flagship brands, "Winner Medical" and "Purcotton". By crafting a dedicated supply chain system, we' ve realized a comprehensive "end-to-end, full-chain integration" of cotton. This strategic approach enables us to oversee quality at every phase and dimension, securing the stability of our supply chain.The Company firmly believes in the ethos of win-win cooperation and mutual growth with our suppliers, dedicating efforts to bolster supplier support and fostering a sustainable supply chain. Regular supplier training sessions and on-site consultations are conducted, benefiting approximately 30% of our suppliers. In response to market dynamics, the Company devises tailored support for suppliers to jointly overcome difficulties, aiming to encourage a stable and positive evolution of the industrial chain. From November to December 2023, Winner Medical showcased at the inaugural China International Supply Chain Expo as the leader of the "Healthy Life Section." Our exhibit, "Healthy China, One Cotton One World," explored the rich history, modern progress, current industry landscape, and technological advancements in cotton. We showcased the Chinese model of promoting the prosperity of the "Cotton Industry Chain" to the society, highlighting the seamless cooperation and synergy across its various segments. This presentation underscored the philosophy of fostering an open and mutually beneficial relationship with both upstream and downstream partners.1516CSRSpotlight2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. About Us ESGManagementMessage from ChairmanWinner Medical recognizes that sound supply chain management is a crucial driver for the positive development of the Company, with win-win cooperation serving as the foundation for our growth. Through ongoing exploration and innovation, we have expanded multi-industry partnerships, supporting the sustainable evolution of the cotton industry chain. We are dedicated to offering consumers a future where non-woven products can effectively replace woven materials, and pure cotton replaces chemical fibers, and jointly creating a sustainable business model for the cotton industry..Championing Industrial Upgrades for Sustainable SupplyNavigating uncertainty and integrating throughout the industrial chainA supply chain that cultivates mutual successLi Jianquan, Chairman of Winner Medical, has taken on the role of the inaugural rotat ing chair of the Management Committee of Cotton China Sustainable Development Program.CaseWinner Medical at the First China International Supply Chain Expo2023 China International Supply Chain ExpoWinner Medical continuously strengthens internal compliance management, establishes a sound corporate governance structure, and improves the quality of information disclosure. The Company also strengthens investor relations management by regularly holding investor communications meetings, proactively exchanging with investors, and responding to market concerns, to enhance investor trust in the Company, and ensure the long-term stable development of the Company.17182023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.Conducting Prudent Governance to Build a Solid Development Foundation19202023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Build a Solid Development Foundationto Build a Harmonious Society Togetherto Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementConducting Prudent Governance Giving Back to the SocietyPracticing Green Development Pursuing Excellence Operations of three meetingsIn accordance with the Company Law, the Securities Law, the Rules Governing the Listing of Shares on the ChiNext of the Shenzhen Stock Exchange, the Articles of Association of Winner Medical Co., Ltd . (the "Articles of Association ") and other Chinese laws, regulations and regulatory documents, the Company has ensured that the General Meeting of Shareholders, the Board of Directors and the Board of Supervisors can exercise their powers of decision making and supervision, so as to enhance the independent operation of the three meetings, improve the governance mechanism and standardize the operation and management of the Company. On December 19,2023, we conducted training for Board of Directors, Board of Supervisors and senior management on recent regulatory trends and the new regulations for independent directors.The Board of Directors (the Board) is accountable to the General Meeting of Shareholders and has four specialized committees that are accountable to the Board of Directors. The membership of these specialized committees is made up entirely of directors. Except for the Strategy and Social Responsibility Committee, other specialized committees are comprised of a majority of independent directors who act as conveners, and the convener of the Audit Committee is an accounting specialist. The Board is in charge of establishing the working procedures and standardizing the operation of the specialized committees, which provides strong support to the Board in making scientific decisions.The Board of Supervisors supervises the Company's finances and the legality of the duties performed by the Company's directors and senior management in accordance with the Company Law and other Chinese laws and regulations as well as the Articles of Association and interests of the Company and its shareholders8Winner Medical is a council member of the China Association of Pubic Companies and the Shenzhen Public Companies Association, which has always standardized its operations, and established a modern corporate governance system that is scientific and standardized, with effective checks and balances and efficient operations. The Company strengthens communication with investors, and fulfills its information disclosure obligations.Relationship of three meetings in the Company3General Meetings of Shareholders held 6Meetings of the Board of Supervisors held Board meetings held During the Reporting Period,As of the end of the Reporting Period, 7Directors in the Board of Directorsincluding 3Independent directors2includingFemale directorsGeneral Meeting of ShareholdersBoard of DirectorsBoard of SupervisorsThe General Meeting of Shareholders is the highest authority of the Company. The Company convenes and holds the general meeting of shareholders in strict accordance with the relevant regulations and requirements such as the Company Law, the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders to ensure that all shareholders , especially small and medium shareholders, enjoy equal status and fully exercise their legitimate rights.Strategy and Social Responsibility Committee Nomination Committee Audit CommitteeRemuneration and AssessmentWinner Medical's General Meeting of ShareholdersThe Board of DirectorsThe Board of Supervisors Investor relations managementWith the purpose of respecting, rewarding, and protecting investors, the Company has formulated regulations and systems such as the Investor Relations Management System , and the System for Reception of Research Visits by Specific Subjects , committed to continuously improving its corporate governance and investor relations management. Currently, a relatively complete work mechanism has been formed.Investor relations management has been comprehensively deployed, covering modules such as "regular report promotion - routine institutional communication - activities of small- and medium-sized investors - internal and external tracking and high-frequency analysis". Eventually, a relatively complete mechanism for investor relations management has been developed as a whole.T h e C o m p a n y p a y s a t t e n t i o n t o opportunities for communication with investors. We reach a wider audience and engage in extensive and in-depth communication with all investors in various forms, including performance presentations, analyst meetings, on-site visits, institutional reverse roadshows, interaction platform of SSE (.cninfo.com.cn/), and hotline calls .Rated as 5A in the Performance Evaluation of Board Secretary for two consecutive yearsRated as "Best Practice Award for Board Office of Listed Companies" by China Association for Public Companies for two consecutive yearsIn 2023, at the invitation of the Shenzhen Stock Exchange, the Company's board secretary recorded a themed course on Institutional Investor Relations Management of Listed Companies , sharing practical experience and reflections from the exchange with peer listed companies.Improving Corporate GovernanceManagement mechanism improvementIn-depth communication in multiple forms21222023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Build a Solid Development Foundationto Build a Harmonious Society Togetherto Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementConducting Prudent Governance Giving Back to the SocietyPracticing Green Development Pursuing Excellence Information disclosure enhancementSince its listing, the Company has attached great importance to information disclosure. It has formulated the Information Disclosure Management System , the Accountability System for Major Errors in Annual Report Information Disclosure and other relevant systems, to strictly regulate the Company's information disclosure and ensure the veracity, timeliness, accuracy, and compliance of all disclosed information.Protection of shareholder rights and interestsThe Company fully implements the policy of convening general meetings of shareholders through online voting. The approach makes it more convenient for shareholders to participate in the meetings, and effectively safeguards the legitimate rights, interests and demands of investors. To ensure investors fully exercise their rights, the Company upholds the separate counting and disclosure of votes on all major proposals for small- and medium-sized investors, encouraging their participation in corporate governance and key decision-making processes.In December 2023, as a representative of the China Association for Public Companies, Winner Medical participated in the Hong Kong Capital Market Forum of Chinese Listed Companies and the Hong Kong Roadshows. Chen Huixuan, Deputy General Manager and Secretary of the Board of Directors of the Company, led a team to visit the Hong Kong Stock Exchange and the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, and participate in institutional investor roadshows. Through visits, discussions, and exchanges, the Company enhanced the understanding of the Hong Kong capital market, built a bridge with overseas investors, and more intuitively demonstrated and expressed the long-term investment value of Winner Medical to investors.Performance Presentation for 2022 and Q12023ESG themed investor exchange meeting2 annual reports included into the Excellent Cases of Annual Reports of Listed Companies compiled by the Shenzhen Stock Exchange since the listing of the Company Rated as Class A on information disclosure by the Shenzhen Stock Exchange for two consecutive yearsRated as "Excellent ESGCase Study of Listed Companies" by China Association for Public Companies for three consecutive yearsDuring the Reporting Period, our WINDESG rating improved from BBB to A, and its Guosen Securities ESG rating achieved AAA, ranking the top of the textile, apparel, and luxury industryannouncements of various types issued during the Reporting PeriodHonorsHonorsAwarded the honorary title of "Excellent Practice Case of the Annual Report Performance Presentations" by the China Association for Public Companies for three consecutive yearsAwarded the "Best Practices for Investor Relations Management by Listed Companies" by the China Association of Pubic CompaniesAwarded the "Tianma Award for Investor Relations of Listed Companies in China" by the Securities TimesCaseVisiting the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region7600Performance presentations in various forms30Securities strategy meetings participatedInstitutional investors communicating with the Company about+++801,700Communication activities organized in various formsPeople communicating with the Company during the Reporting Period129Participating in the Hong Kong Capital Market Forum of Chinese Listed Companies and Hong Kong Roadshows23242023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Build a Solid Development Foundationto Build a Harmonious Society Togetherto Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementConducting Prudent Governance Giving Back to the SocietyPracticing Green Development Pursuing Excellence Operating in Compliance with Laws and RegulationsStrengthening risk controlThe Company continues to strengthen risk control by constantly improving its management system, strengthening risk identification mechanisms, and developing risk response strategies to ensure effective control and prevention of risks.In strict compliance with laws and regulations, Winner Medical focuses on strengthening risk management, always follows business ethics, and ensures the safety and stability of enterprise operations, laying a solid foundation for the sustainable development of the enterprise.Winner Medical collaborates with Ernst&Young Global Limited on risk control projects to cultivate a "Golden Seed" talent for internal risk control within the Group. Through systematic learning of risk management knowledge and project practice, we continuously cultivate and integrate fresh talent into the Golden Seed Talent Plan. This initiative enables employees to understand the basic knowledge, role, and value of risks, raise their risk prevention awareness, improve their risk prevention capabilities, and finally become an "indispensable risk management team" of the Company.Tel: Landline 0755-28018166; Mobile 199251935688Email: jubao@winnermedicalWeChat official account: "Reporting channel" under the Group Risk Control CenterLetters: Winner Medical Supervision, =Headquarters Building,43/F, HBCHuilong Center, Intersection of Mintang Road and Yulong Road, Longhua District, ShenzhenVisiting for reportingWhistleblowers may make a reporting through the following channels:Reporting channelsFollowing business ethicsThe Company has gradually established an enterprise anti-fraud governance system that integrates prevention, identification and response. Specifically, we have formulated a series of rules and regulations as institutional guarantee, and carried out offline anti-fraud compliance training from management to employees at multiple levels through the "Winner Medical Supervision" WeChat official account. We have carried out multiple special inspections on key issues of the Company, strengthened the development of the Company's integrity culture, and established various reporting channels and protection mechanisms to protect the rights and interests of whistleblowers.We have established a risk fraud mapping matrix for the entire group from a supervisory perspective, which has been applied in the guidance of supervisory work.8 anti-fraud systems are developed and revised. We have completed the declaration of conflicts of interest for all members of the Group for the first time.765 deputy managers or above of the Group have been organized to sign integrity commitments to improve the professional ethics of the management team.Governance mechanism17 articles on integrity publicity and implementation are released on the Company’s WeChat official accounts and 7 special training are conducted to convey correct values and codes of conduct to employees, thus preventing the occurrence of misconduct and reducing potential fraud risks.Cultural developmentDuring the Reporting Period, a total of 19 revisions and updates to systems (including the supporting systems for independent directors) were completedTo standardize the Company's comprehensive risk management and establish a scientific and effective risk management system, the Company has established and improved its internal control systems, including the Risk Control and Disposal Mechanism , the Mechanism for Risk Accountability , and the Comprehensive Risk Management System . The Company irregularly reviews the internal governance system to ensure effective connection and follow-up with the revisions of the latest national laws and regulations, listing supervision policy guidelines, and rules. Besides, an internal control management committee has been established. The internal control management institutions of each subsidiary should be consistent with the organizational structure of the Group's internal control management committee to coordinate with the headquarters for unified management and policy implementation, which promotes the sustained, stable, and healthy development of the Company.Management systemThe Company identifies various risk factors that may have a negative impact on its goals and business operations by reviewing business procedures, internal control systems, and external environment. After identification, the risk factors are evaluated and analyzed through risk matrix, risk indicators, and statistical data analysis. In such way, we can determine the occurrence probability of risks and the degree of their impact on the enterprise, to provide a basis for subsequent risk control.Risk identificationThe Company organizes annual risk control summary meetings to enhance its risk control awareness. A strict approval procedure is in place, with clearly defined authority and accountability structures, ensuring all business activities and decisions receive reasonable review and approval. We also clarify the job responsibilities and authorities of employees to ensure clear division of responsibilities in various business processes and prevent overlapping and ambiguous responsibilities, while establishing appropriate job rotation mechanisms. An asset management system is built, including the registration, inventory, storage, and use of important assets, to ensure the safety and effective utilization of our assets. Various risk control training are conducted for employees to raise their risk prevention awareness and improve their ability. In August 2023, more than 50 middle-level and above employees were organized to participate in securities compliance and public opinion management training.Risk controlCase Carrying out training of "Golden Seed " Talent Plan for Risk Control to strengthen employees'risk prevention awareness"Golden Seed" Talent Plan25262023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.Pursuing Excellenceto Spearhead Industry AdvancementFor three decades, Winner Medical has followed a path defined by innovation-driven and quality-oriented development. We steadfastly adhere to our core strategy of “leading products and excellent operation”, progressing towards high-quality development. This involves enhancing our product R&D innovation, and accelerating business transformation at the forefront of the industry. At the level of operational excellence, driven by digitalization and intelligent manufacturing, we are committed to cost reduction and efficiency improvement. By continuously enhancing our core competitiveness, we also foster progress and development within the industry.2728to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Being usefulSolving pain pointsBridging market gapsCreating new opportunitiesAnticipating needsEnhancing customer experience2 4 6Major ModesOriginating from Market NeedsBased on Fundamental PrinciplesDemand-pushed innovationInnovation for cost reductionInnovation for social responsibilityInnovation for a better life“246” Approach for InnovationStrengthening R&DCapabilitiesResearch management mechanismWe have developed a comprehensive innovation and R&D system. Committed to the "246" innovation principle, we embrace new technologies, foster new demands, uphold technological ethics throughout the R&D process, enhance ethical risk management, and place a high emphasis on attracting and nurturing research talent to ensure sustained high-quality growth. Industrialization of scientific research resultsWe actively promote the application of scientific research findings, enhancing the speed at which research and technology are converted into practical solutions. Several projects have led to technological breakthroughs in medical dressings and daily consumer goods, achieving mass production and market release. We thus continually offer consumers improved cotton-based products.As a leader in the industry, Winner Medical understands the critical role of innovative research and development（R&D） in the growth of both the Company and the entire industry. We have always prioritized scientific and technological innovation, enhancing our research management mechanisms, deepening industry-university-research integration, and building robust in-house research and innovation capabilities. Our innovation extends from technology, materials, and products to cotton breeding, significantly bolstering our core competitiveness.R&D investment during the Reporting PeriodRMB million322Research personnel1,259We have advanced into the third generation of bioactive dressings with proprietary collagen extraction technology, obtaining FDA’s 510K clearance.We have developed a unique hydrocolloid formula and mastering the coating moulding process for mass production, shifting from outsourcing to independent production.In July 2023, the cotton lining surgical masks were fully rolled out, leading the industry! As a leading enterprise in the domestic health industry, in active response to the national "dual carbon" policy, Winner Medical that plays a leading role in domestic healthcare industry continuously invests in the R&D of new products, and gradually promotes the "pure cotton substitution" of all products. With practical actions, Winner Medical leads the trend of medical environmental protection and promotes the sustainable development of the medical industry.Innovations in Medical DressingsEthical risk managementWe adhere strictly to the Regulations on the Administration of Laboratory Animals , and follow the "3Rs principle" (Replacement, Reduction, and Refinement of lab animals). We also strictly abide by the Declaration of Helsinki and the Quality Control Standard for Medical Device Clinical Trials (GCP) promulgated by the National Medical Products Administration to protect the rights and interests of subjects.We are required to obtain approval from the ethics committee of the relevant medical institution when conducting clinical studies on the relevant product. The investigator must provide the subject with details of the clinical study, and any subject who is capable of giving informed consent must be fully informed of the purpose of the study, the methods, any possible conflict of interest, the investigator’s affiliation, the expected benefits and potential risks of the study, any discomfort that may be caused by the study, post-study safeguards and any other study-related aspects, and sign an informed consent form for the patient.Compliance with laws and regulationsResearch process integritySelection and training of scientific research talentThrough init iat ives l ike targeted professional college recruitment and the "Spring Seedling Initiative," we recruit R&D talents from renowned institutions like Zhejiang University, Sun Yat sen University, Xiamen University, and Sichuan UniversityDonghua University, Tianjin Polytechnic University, Wuhan Textile University, and Zhejiang Sci-Tech University, while bringing in domestic and international senior technicians to strengthen our R&D center's talent team.Emphasizing the training to equip our research staff with cutting-edge innovation techniques, we’ve adopted an advanced training strategy to disseminate awareness of innovation and innovation methods, and promote our means for innovation. To achieve this, we host a minimum of 10 training sessions each year, led by esteemed corporate experts and professors from scientific research institutions from home and abroad, and send our core technicians to premier enterprises and research institutes for further education. Collagen Sponge Bioactive DressingCotton Lining Surgical MasksHydrocolloid ProductsMajorPathwaysKey InsightsSelectionTraining2930to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Verification Holder Shenzhen Purcotton Technology Co.,Ltd. 38/F, Building 2, Huilong Business Center, Beizhan Community, Minzhi Street, Longhua District Shenzhen City China The Bureau Veritas Verified Mark is an independent marketing claim verification process that assesses the validity of specific advertising or promotional statements. The product detailed below has successfully completed the marketing claim verification process according to the below specifications and protocols. Protocol and Specification BVVerification Rules Ed 2 VERP-015 : Silicon softener free - VERP-016 : Cationic softener free Verified Marketing Claim Product: Gauze bath towel without softener - - Q/QMSD 011-2020 Verified Statement: 99.9% Cationic softener DSDMAC, DHTDMAC and DTDMAC free (Sum below 10mg/kg) 99.9% Silicone softener D4, D5 and D6 free (each below 10mg/kg) Verification ID: BVV_10046 Report Number: (6622)292-0133 Verification Expiry Date: 01/11/2027 The verification process has been done on sample representative of the product and provided by the client Verification Statement Date: 02/11/2022 Didier BOURGES LCIECertification Officer The verification statement neither expressly nor indirectly implies any warranty, guarantee or any other assurance that a product, for which the certificate is granted, complies with any statutory or other requirements. The verification statement does not substitute any other product certificate and/or marking which may be mandatory or required under any other statutory or other regulations whatsoever. Further clarifications regarding the scope of this verification may be obtained by consulting the organization. To check this verification validity, please check our website of 1 Our latest foam dressing product, recognized for its ease of use and excellent performance, facilitates medical staff operations and supports patient recovery. On June 8, at the first BrightMDFair China (Shenzhen), Winner Medical made an on-site release of foam dressings that were included into the Shenzhen standard catalogue for certified medical devices.this product was included in the Shenzhen standard catalogue for certified medical devices..Purcotton’s gauze bath towel, made from 100% premium combed long-staple cotton, is produced without any softeners. Even after multiple washes, it retains its natural softness, ensuring a gentle, non-oily touch akin to the skin. In collaboration with Bureau Veritas of France, a leading global testing and certification agency, our towels have been rigorously tested and have received the industry’s first certification for being free of added softeners.Intellectual property managementThe Company prioritizes intellectual property (IP) rights management. We continually enhance our IP management mechanisms and have developed the Intellectual Property Management System. This system, overseen by the Innovation Committee, ensures the macro-management of IP rights, standardizes their management, fosters employees’enthusiasm for technological innovation and invention, and facilitates the application of IP rights.By the end of the Reporting Period, obtained 1,375patents, comprising 140 invention patents，810 Utility model patents and425design patents.In 2023,311new patents were granted , including 30 invention patents，200 utility model patents and 81 design patents.Silicon Softener Free certificate issued by Bureau Veritas, FranceWe developed a pioneering ultra-soft and thick pure cotton spunlaced non-woven fabric specifically for cotton soft tissues. This fabric provides exceptional softness and thickness, surpassing consumer expectations for quality and comfort.We introduced the first-ever low-temperature bleaching process, increasing the softness of the product by 15% and its thickness by 10% using advanced fluffy spunlace non-woven fabrics.This innovative process significantly cuts down energy use and carbon emissions by reducing the production temperature.It achieved an industry-first in elasticity with stretchable c o t t o n g a u z e , t h a n k s t o t h e i n n o v a t i o n i n c o t t o n -covered yarn technology and equipment, marking a significant advancement in gauze products.We successfully created icy gauze through a combination of chiffon yarn technology and the mercerizing process, delivering a cooling sensation that exceeds the national standard by 30%, offering instant relief and comfort.The innovation in gauze creping t e c h n o l o g y h a s l e d t o t h e development of Airy Crinkle Yarn, with improved wrinkle effects and fabric uniformity for enhanced comfort and aesthetic appeal.Purcotton is proud to introduce its second-generation Air-Soft Cotton Warm Velvet, a fabric that offers superior softness, increased thickness, and better heat retention.Ultra-Soft and Thick Pure Cotton Spunlace Non-woven Tissue FabricBaby Super Soft Cotton Tissues (Enhanced Size and Thickness)Airy Crinkle Yarn 3.0Second-Generation Air-Soft Cotton Warm VelvetStretchable Cotton GauzeIcy GauzeInnovations in Daily Consumer GoodsCaseWinner Medical’s new foam dressing obtains Shenzhen standard certificationShenzhen Standard proves high quality. Winner Medical's new foam dressing product enters the Shenzhen standard catalogue for certified medical devicesCaseIndustry’s first certified softener-free gauze bath towel30 3132to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Pursuing Premier QualityQuality management and control systemThe Company stringently oversees the three critical stages of product quality: development, production, and pre-launch. Employing PDCA (Plan-Do-Check-Act) cycle management, we continuously refine our management mechanisms, ensuring our products’ quality level and reputation remain industry-leading.Digital and smart manufacturingSince 2016, we have launched a digital transformation strategy, marking the beginning of the exploration of intelligent manufacturing. A series of measures have been gradually implemented with lean, standardized, automated, green energy, digitalization, and intelligence as the core , and projects have been gradually promoted to roll out, such as SAPS4 upgrade, PLM, OA, CRM, WMS, Win+ platform, and SRM. In such way, we have achieved business integration throughout the whole procedure of R&D, planning, manufacturing, quality, processing, warehousing, logistics, and customers, thus consolidating basic management, and improving operational efficiency.Adhering to the principle that "quality is superior to profit ", the Company rigorously focuses on product quality management. We have developed strict and sound quality standards and processes, established a quality management center, and maintained control over product quality throughout the entire process, thereby continually enhancing the quality of our products.Honors and AwardsOur quality management center has been certified to ISO 9001 Quality Management SystemPurcotton received the "Advanced Standardization Organization" and "Strategic Partner" awards from the Knitwear Branch of the National Technical Committee on Textiles of Standardization Administration of China and the Sportswear Branch of the Sporting Goods of Standardization Administration of China, respectivelyPurcotton was recognized as a "Model Enterprise for Quality Production in Longhua District"ProductionPre-launchDigital empowerment for enhanced quality management and controlTo tailor process quality control to the specific needs and characteristics of products, quality engineers are deployed to plants for oversight. Sampling inspections are conducted in accordance with the Company’s internal control standards.Initially,30% of fabrics and 10% of auxiliary materials are sampled for inspection. Should these samples fail to meet the Company’s standards, the sampling rate is increased to 50%. If the standards are still not met, the raw materials are rejected.Upon delivery to the manufacturing facility, another round of sampling inspection on the raw materials is conducted by the finished product plant to ensure compliance before use.Quality personnel in the warehouse conduct random inspections on product specifications, quality, and packaging to verify that the stored products meet all defined criteria in terms of quality and quantity.First article sampling inspections a n d i n - p ro ce s s c h e c k s w i l l be conducted. Production is immediately halted upon the detection of any non-conforming p r o d u c t s . P r o d u c t i o n o n l y resumes once the quality issues h a v e b e e n a d d r e s s e d a n d resolved.A 100% inspection rate is applied to ensure every product complies with the necessary requirements.Before launching, products are submitted for physical and chemical tests to a third-party, nationally recognized quality inspection institution. Only products that pass these rigorous tests are approved for market release, guaranteeing compliance with relevant national standards.By integrating manufacturing business processes, production planning and execution, quality management, and equipment maintenance, we ensure comprehensive system monitoring from raw material procurement to final product delivery to monitor and prevent quality issues, thereby ensuring all-round quality management.Historical data analysis quickly pinpoints the root causes of quality issues, preventing the recurrence of similar problems.Raw Material InspectionPre-warehousing InspectionIn-Process InspectionFinished Product InspectionProduct developmentThe operation process of raw material development is standardized through the Fabric Development Specification and Management Procedures for the R&D Department, enhancing raw material control and ensuring product quality and safety from the outset.The development and operational process of packaging materials are standardized via the Review System and First Sample Confirmation of Packaging Material Design Drafts, ensuring packaging structure meets transportation and usage performance, and product information complies with national laws and regulations.The use of production processes is standardized to prevent quality issues attributable to technical factors.The use of product models is standardized through the Detailed Rules for the Review of the Quality S a m p l e O f f i ce , e sta b l i s h i n g standard models.Prior to production, a comprehensive evaluation focusing on risk, fit, sample, and proofing experience is required. Following a successful evaluation, key personnel from R&D, design, technology, quality, and procurement departments jointly sign off on the samples. These are then issued to the plant as sealed samples, serving as crucial reference for quality control and product acceptance.R&DDesignProce-ssesCompre-hensive evalu-ationModelsThe system enables real-time collection, analysis, and sharing of data, facilitating prompt identification and resolution of quality issues during the production process.3334to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Winner Medical: Setting the benchmark for intelligent manufacturing in ChinaIn 2023, with achievements made in the Model Plant for Intelligent Medical Textile Manufacturing of Winner Medical (Wuhan), Winner Medical was honoured as the "leading unit of 2023 Intelligent Manufacturing Model Plants" selected by the Ministry of Industry and Information Technology (MIIT). This accolade is a testament to our commitment to using cutting-edge technologies, such as artificial intelligence, the Internet of Things, and big data, to significantly enhance the quality, production efficiency, and management standards of both our medical and consumer products, earning high recognition from the MIIT.Business value transformation through digital empowermentDigital technology has significantly optimized our business processes, enhanced the efficiency of quality traceability, and reduced the reliance on paper documentation. This shift not only saves the time previously spent manually searching and organizing paper documents and their physical delivery but also elevates work efficiency and maximizes business value.Quality culture fosteringThe Company has actively advanced the development of a quality culture, hosting presentations and info sessions on themes such as quality management system certification, the role of model quality enterprises in Longhua District, compliance training for the Double Eleven online shopping gala, and product certification planning.Annually, the Company undergoes an audit for ISO9001 quality management system certification for the Purcotton brand.This presentation is tailored to the Company’s application for the standardised strategic funding projects of Longhua District.This session trains relevant departments on the common and critical aspects of compliance during the Double Eleven online shopping event.The training targets the non-woven product accreditation and testing of various certification bodies and evaluation institutions both domestically and internationally. Quality Management System Certification PresentationPresentation on the Responsibilities of Model Quality Enterprises in Longhua DistrictCompliance Training for Double Eleven Shopping GalaTraining on Product Certification PlanningTraceability efficiency improvedWorking hours spent on handwriting paper labels and managing forms reduced more than100% 50%CaseEnhancing quality inspection with automated visual inspection technologyPurcotton has introduced automatic visual inspection technology into the quality inspection system for three-dimensional packages of cotton soft tissues. Equipped with four cameras, this system digitally manages all four sides of the packaging, assessing conformity with predefined standards and rapidly initiating appropriate mechanical responses. This has substantially increased the efficiency and accuracy of quality inspections for three-dimensional packaging. Moreover, the technology’s ability to gather extensive detailed data aids in analysing quality variations and implementing timely production adjustments.CaseRegular quality meetingsWinner Medical convenes the Quality Management Center and other relevant departments for a quarterly quality meeting. These meetings review and summarise the quality initiatives of each quarter across six areas: standard system, test management, fabric management, non-woven finished products, woven finished products, and customer complaints. The sessions involve case studies, analyses of quality anomalies, propositions for improvement measures, and drafting of guidelines for future tasks, all aimed at continuously enhancing the level of quality management.Training on product certification planningAchieving National Intelligent Manufacturing Maturity Level 3List of the "leading unit of 2023 Intelligent Manufacturing Model Plants"Case34Automated visual inspection technology3536to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Enhancing Customer ServiceResponsible marketingThe Company integrates the principle of responsibility into all marketing activities, creating tailored responsible marketing policies for different demographic groups to guarantee the standardisation and efficacy of these activities.Customer service managementThe Company is committed to continuously enhancing the customer service management system, valuing customer feedback, and consistently refining our service processes. We strive to improve the professional skills and service levels of our customer service team to deliver superior services.Full-Process Customer ServiceManagement mechanismsCustomer complaint handlingProfessional trainingEngaging in specialized vocational skills training has enabled 30 customer service personnel to successfully pass the "Senior Baby Nurse" examination and certification, thus offering more detailed and professional baby-care knowledge services to our customers.By linking stores and warehouses for on-site training about products and sales experiences, we help customer service personnel gain a deeper and more intuitive understanding of our goods, enabling them to provide more targeted services to our customers.We organize various activities such as sales champion awards, service star evaluations, "Purcotton Changes the World" speech contests, and part-time lecturer competitions to motivate our customer service staff to enhance their business knowledge and service quality.We provide full-process customer service, and establish and refine relevant management mechanisms. By reviewing and optimizing internal management systems and process standards, such as the standard operating procedure (SOP) for customer service reception, after-sales policy, processing standards, and the refund process for customer returns, we aim to increase the standardisation, consistency, and quality of our customer service.Viewing customer complaints as opportunities for product and service enhancement, we have developed the Management Specification for Submitting and Upgrading Customer Complaints. This aims to standardize the customer complaint handling process, prevent complaints, and address major or potential risk events, thereby improving the timeliness and service level of problem resolution.We are dedicated to continually enhancing the professional knowledge and skills of our customer service staff, encouraging proactive learning through both internal and external training sessions, and labour skill competitions. This approach ensures that our customers receive more comprehensive and professional services.Focus on their specific needs, prioritising public welfare support during disasters and public health incidents.Regularly assess their unique product needs to tailor and enhance product offerings, providing better medical protection support.Professional training programs conducted for hospital medical staffParticipants benefited in total9556 Customer complaint response rate100%Closed-loop rate for resolving issues within 48 hours 96.8%Number of professional baby nurses in the customer service team as of the end of the Reporting Period 95CasePromoting public education on respiratory protectionWe have launched the "Science Popularization · Protection Series Talks" in collaboration with the China Youth Daily to carry out two sessions of health education on respiratory protection and children's respiratory protection during the school season. We are in response to public concern by providing reliable health education on infectious diseases from authoritative medical experts that the public are concerned about.Organize specific care activities on "Physician’s Day" and "Nurse’s Day" to show appreciation for their dedication.For infection control professionals, operating room nurses, and specialised wound nurses, conduct special education and training programs to support the quality development of continuing education in these specialised majors.Offer consultation services on product details, store and membership activities, and platform rules for prospective customers.After the customer places an order, handle special shipping requirements, abnormal transportation of in-transit orders, as well as customer return, refund, and exchange needs, and standardize the after-sales process, enhancing the shopping experience for customers.Provide consultation on the shipping and delivery of orders, address product issues upon arrival, and promptly resolve any customer concerns to ensure a seamless problem resolution loop.Pre-Sales service In-Sale service After-Sales serviceWinner Medical is dedicated to a customer-centric service philosophy, continuously refining and advancing our high-quality service framework, sharing the softness and beauty of cotton, and ensuring every customer’s peace of mind.For Medical and Nursing StaffWinner Medical’s Responsible Marketing PolicyFor Children and the Elderly"Science Popularization · Protection Series Talks"3738to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Customer satisfactionTimes of "Gold Customer Service Team" title awardedTimes of "Warm Shopkeeper" title awardedExtending quality issue resolution timeframeFol lowing customer suggest ions, we launched apparel categories in 160 sizes for older children in the third quarter of 2023 after feedback and investigation.We conduct monthly"fault-finding" activities on product detail pages, adding comprehensive size information, including measurements, detailed data, and try-on effects, based on customer consultations and return reasons, to provide more complete product information.We offer customers an extended period to address quality issues. If genuine quality problem photos are provided within three months from the sale date, we proceed with the resolution, further safeguarding customer rights.Meeting consumer demand Improving product profile pages2021 90.09 2022 91.43 2023 92.74Customer SatisfactionTmall team honoured as the "Excellent Customer Service Team of the Year"JD.COM team received the "Outstanding After-sales Service Award of the Year"CaseCaseCaseInitiating the Global Member Access Initiative to improve member experienceCreating "Voice of Customers" Project and actively listening to customer feedbackTo address inconsistencies in membership benefits arising from the separate management of online and offline platform members, Purcotton initiated the Global Member Access initiative. This effort aimed to harmonize online and offline membership benefits, offering consumers a consistent membership experience and service.Membership across all channels is standardized, including unified levels and accumulation of bonus points across different channels.We have ensured that multi-terminal membership and multi-platform membership benefits are consistent, offering uniform basic rights to all members and enriching the value of membership.We’ve synchronized member interaction activities across channels, enhancing the consistency of visual themes and interaction opportunities to boost member engagement.With the "Voice of Customers" project, Purcotton actively seeks out and listens to customer feedback. This initiative aligns customer issues with specific departments following a "issue identification - reason analysis - period review" approach. By breaking down goals for each department and promoting actionable improvements, we’re continuously tracking progress to enhance customer satisfaction and experience.During the Reporting Period,5 "Voice of Customers" meetings held,21 departments mobilized to 57 action items completedIn July 2023, Purcotton introduced the "Undercover Customer"project, where anonymous shoppers evaluate our offline stores regularly. These evaluations focus on the store’s overall presentation, product displays, staff appearance, and service quality. Insights from these visits inform updates to our store SOPs, continuously refining the shopping experience.580 undercover evaluations in Purcotton stores conducted, 87.81 (out of 100) overall satisfaction score achieved2416Unified MembershipUnified Membership BenefitsUnified Interactive ActivitiesMeeting for awarding regional service stars of the yearHonors and AwardsOur priority is always on customer experience and satisfaction. We continuously gather customer feedback to thoroughly understand their needs, improving service efficiency and quality, safeguarding customer rights, offering more personalized services, and thus further boosting customer satisfaction.Initiating "Undercover Customer" Project to continuously optimize the offline shopping experience for customers39to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Ensuring Work SafetyWork safety managementThe Company has implemented a tiered safety management system, establishing standardized procedures for safety inspections, emergency drills, and the identification of potential hazards. We also enhance employee safety awareness through training initiatives, continuously elevating our work safety management standards.Administrative penalties related to work safetyCaseConducting the Work Safety Red Flag Appraisal to enhance safety levelsDuring the Reporting Period, Winner Medical encouraged its branches to engage in the Work Safety Red Flag Appraisal. This initiative aimed to promote sta n d a rd i ze d w o r k s a fet y management and elevate the safety management standards through evaluations of the safety management system, routine checks for potential hazards, and branch-specific site inspections.Safety Management Mechanism0Major work safety accidents0 40Winner Medical prioritizes work safety, continually refining its work safety management mechanisms. We proactively identify potential safety hazards and categorize risk controls to ensure work safety is manageable. Additionally, we focus on mitigating internal and external information security risks to safeguard all related data.Safety inspection conducted at Winner Medical (Huanggang)Safety Inspection and DrillsSafety inspections conducted by the GroupSafety drills held by branches9 times18 timesWe regularly carry out emergency drills such as safety inspections, evacuation, fire drills, and competitions to comprehensively improve work safety.Safety drill held at Winner Medical (Jiayu)Enhancing safety awarenessWe are dedicated to educating our employees on work safety knowledge. This includes our work safety policy and EHS policies, alongside what employees should know about ensuring work safety. We provide three-tier safety education and training for both new hires and those changing positions, ehancing employees’ safety awareness.Safety education and training Training organized by the Purcotton on fine management of warehouse and llogistics safety Work Safety Red Flag AppraisalTraining sessions on work safety conducted by the Group9 times ASafety Committee is operational at the Company headquartersEvery branch has a safety committee tasked with overseeing all safety-related activities.The General Manager of each subsidiary acts as the primary individual responsible for the subsidiary’s safety.4142to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Information securityThe Company has developed a three-tier information security management organizational structure, aimed at achieving the foundational goal of maintaining robust information security capabilities. This initiative focuses on enhancing the security performance and reliability of our information systems, promoting internal and external awareness of information security, and ensuring data security.Internal publicity sessions on information security Information security training coverage rate%Training sessions on information security481004In November 2023, Winner Medical successfully passed the third level of evaluation for network security. This achievement has significantly improved the security performance and reliability of our information systems, guarding against malicious attacks, unauthorized intrusions, data breaches, business disruptions, and other risk events, ensuring uninterrupted operation of our information systems.Organizational Structure for Information Security Management Information Security PublicityInformation Security Management CommitteeProject Management OfficeSubsidiaries and branches External suppliersGroup HeadquartersImplementing information security projectsMaking decisions on significant issues related to information security projectsCoordinating resources for information security projects Overseeing the operation of the information security management systemConducting progress management of information security projectsSupervising the operation of information security projects Performing daily security operations and maintenance, including terminal security protectionConducting terminal security protection to prevent data leaksIdentifying, tracking, and investigating security incidentsManaging the security risks of information assetsAssisting in project implementation and deliveryConducting regular inspections and addressing after-sales complaints as neededDisclosing major information security hazardsSetting information security goals and outlines construction pathwaysCoordinating with departments and external suppliersOrganizing regular safety evaluations and reportsAssigning tasks and tracking progressCaseWinner Guilin’s successful execution of the 22nd National “Work Safety Month” activitiesDuring the Reporting Period, Winner Guilin crafted the 2023 Safety Month Work Plan around the theme of "Everyone Emphasizes Safety and Everyone Able to Respond to Emergencies." Tailoring activities to fit actual production, operational, and safety management needs, Winner Guilin successfully executed all Work Safety Month initiatives as planned. These included:A prize-winning "Safety Hazard Identification" activityEmergency drillsInternal education activitiesWe actively carry out information security promotion through Internal education activities, Internal surveys and interviews, and external training, continuously strengthening employee information security awarenessExternal trainingHonors and Awards4344to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Advancing Together with PartnersPromoting industry progressThe Company places a high priority on R&D and innovation, constantly improving our capability to collaborate with academia and research institutions. This enhances the quality of our research and development, speeds up the translation of findings into practical applications, and involves us actively in establishing various standards to drive high-quality industry development.CaseCaseCaseBionic artificial cornea research with Southern University of Science and TechnologyLanding two research outcomes with Wuhan Textile UniversityHome wear comfort study with Tianjin Polytechnic UniversityIn November 2023, a joint project with Southern University of Science and Technology on bionic artificial corneas was approved as a key scientific and technological initiative in Shenzhen. This research into high-value-added medical bionic implant materials, including collagen applications, received RMB 8 million of special funds for scientific and technological research.Winner Medical has worked with Wuhan Textile University on two key projects: eco-friendly bleaching technology for cotton fibres and products, and pre-research on the industrialization of Bletilla polysaccharide dressings. These projects have effectively pooled innovative resources, environments, and mindsets to facilitate the translation of innovation into productive outcomes.Purcotton collaborated with Tianjin Polytechnic University to investigate the wear comfort of home clothing. This study involved real-person trials to assess the fabric’s performance and the design of the clothing. Flexible sensors measured the pressure in key areas during everyday wear, and these objective data points were combined with subjective human evaluations. Through data analysis and mathematical modelling, we’ve managed to quantify the comfort of wearing more scientifically.Participation in Standard SettingOver the Reporting Period, the Company contributed to the development of 15 standards, with 12 already published and implementedIndustry-University-Research collaborationWe engage in collaborative projects with universities and scientific research institutes, such as Huazhong Agricultural University, Wuhan Textile University, Southern University of Science and Technology, Tianjin Polytechnic University, Jiangnan University, and Suzhou University. These partnerships focus on the collaboration between industry, research, and education in cutting-edge areas like cotton gene breeding and artificial blood vessels, facilitating the conversion of scientific breakthroughs into tangible productivity.Standard Name Category StatusSingle-use Protective Clothing for Medical Use National Standard PublishedProtective Face Mask for Medical Use National Standard PublishedFootwear for Older People National Standard PublishedSterile Surgical Films for Single Use Industry Standard PublishedChidren's Footwear Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Soft Nonwoven Towels Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Sanitary Napkins Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Diapers Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Apparel – Bras Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Towels Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of T-shirts Group Standard PublishedTechnical Requirements for Carbon Footprint Assessment of Cotton Fabric Group Standard PublishedPlaster Bandage Industry Standard To be PulishedTechnical Requirements for the Use of Disposable Surgical Drapes Group Standard To be PulishedRequirements and Test Method of Thermal Insulating Performance of Home Textiles National Standard In PreparationWinner Medical, in collaboration with both upstream and downstream enterprises and the broader community, aims to foster a positive supply chain cycle within the cotton industry through research and cooperative cultivation, enhancing production capabilities, and innovating product development. This approach extends our commitment to responsibility across the supply chain, leading the way in building a sustainable industrial chain.Home wear comfort study4546to Build a Solid Development Foundationto Build a Harmonious Society TogetherConducting Prudent Governance Giving Back to the SocietyPursuing Excellence 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Developing a responsible supply chainWe have continuously improved our procurement management system and supplier management mechanisms. During the Reporting Period, we revised existing systems such as the Supplier Management Procedure , Supplier Classification and Grading Management , Supplier Information Management , and Supplier Exit Management Mechanism . In addition, we also introduce new management systems including Developing Plans for New Suppliers , New Supplier Admission Review Specification , Supplier Performance Management , and Supplier On-site Audit Specification . By implementing full lifecycle management, we collaborate with our suppliers for mutual growth and build a sustainable supply chain.Suppliers in total833Responsible procurementOur commitment to responsible procurement emphasizes environmental and social performance, requiring suppliers to adhere to our Supplier Management System and sign the Integrity Commitment. We review suppliers in accordance with social responsibility requirements. This approach ensures that our values of social responsibility, business ethics, environmental protection, and labour rights are extended throughout the supply chain.CasePromoting the carbon footprint certification of Yuyue Home Textile, ShandongYuyue Home Textile Co., Ltd., with its comprehensive textile industry chain encompassing R&D, design, and the production of spinning, weaving, printing, dyeing, and sewing, ranks among China’s top 30 printing and dyeing industries for ten years in a row. In collaboration with Yuyue Home Textile, Winner Medical has produced eco-friendly four-piece cotton satin bedding sets. Every stage of production, from weaving to sewing, prioritizes environmental protection and sustainability. The product has also completed carbon footprint certification.Geographical distribution of suppliersthe Chinese MainlandHong Kong, Macao, Taiwanoverseas regions, or other classifications816 2 15Percentage of suppliers signing integrity agreementsPercentage of suppliers conducted environmental and social impact assessments Percentage of new suppliers conducted environmental and social impact assessments100% 50% 60%Empowering supplier trainingBuilding a digital supply chainCommitted to mutual growth and beneficial partnerships, we consistently offer training and guidance to our suppliers. This approach, grounded in win-win cooperation, aims to enhance their capabilities, thereby contributing to the supply chain's robust and healthy development.We activate the SRM and SCM supplier collaboration system, synchronously improve the MDC and PLM data management systems, and promote integration between various systems and modules. In doing so, in terms of digital management, the efficiency of procurement execution have been greatly promoted, and the price module have become more transparent.For end-to-end order delivery and inventory visualization management, we collaborate internally with IT departments to develop BI visualization, and connect information data from demand planning to supply planning, thus reducing offline communication frequency, and improving operational efficiency.Supplier trainingSupplier Life-cycle ManagementLife cyclePerformance AppraisalAccessDevelopmentElimination Routine Management4748Practicing Green Developmentto Embrace Low-Carbon LifestyleWinner Medical is committed to aligning its growth with green development trends. We’re setting a strategic goal towards “carbon neutrality” within our operations, and promoted demonstrative projects on green and low-carbon research. To achieve the goal, we transform our supply chains, adjust our energy structure and innovate in our production methods. In our product R&D, we prioritize eco-friendly materials, especially advocating for “cotton over chemical fibre” to satisfy consumer demand for environmental protection with our commitment to green and sustainable development.2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.4950to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Enhancing Environmental ManagementEnvironmental management systemWinner Medical has established the integrated environmental, health and safety management policy of "protecting the environment, preventing diseases and strictly complying with laws and regulations" and "work safety, green & low-carbon development, and the continuous pursuit of social trust". In addition, we implement the green development strategy as well as the environmental protection policy of green, low-carbon and ecological development. In combination of national laws and regulations on ecological environmental protection, we have formulated and updated the Measures on Environmental Management Standards, Rewards and Punishments , Regulations on Environmental Work Supervision , and Regulations on Energy Saving and Consumption Reduction Management, etc. to strengthen our integrated environmental management capabilities.Environmental management trainingWe are dedicated to elevating our environmental management, continually boosting the awareness and capability of our employees and suppliers regarding environmental management. Specialized environmental management training sessions and drills are regularly conducted for both employees and suppliers.Environmental compliance managementThe Company applies for pollutant discharge in accordance with the Measures for the Administration of Pollutant Discharge Permits (Trial) and the Regulations for the Administration of Pollutant Discharge Permits . Each branch has a pollutant discharge permit and registration form. They discharge and monitor pollutants in accordance with the permits, and submit pollutant discharge permit implementation reports as required.Raising environmental protection awarenessEnvironmental management frameworkIn terms of the organizational structure of environmental protection, the Company has set up a leading group on environmental protection headed by the vice president, which is the supervisory body for the Company's environmental protection work. The general manager of each subsidiary (branch) or the person in charge of the unit is the first person in charge of the company's (unit's) environmental protection work, with a full-time environmental protection agency and full-time personnel. Together, they promote energy conservation and consumption reduction.Environmental management systemsWinner Medical promotes ISO 14001 environmental management systems certification. The Company organizes regular internal audits, management reviews and third-party audits to check and diagnose the operational effectiveness and compliance of its environmental management system, completion of environmental protection goals and targets, control of important environmental risks and other environmental operations in an all-round manner, so as to improve environmental performance.ISO 14001 environmental management systems certification coverage rateEnergy conservation and environmental protection investment77.7%E n v i r o n m e n t a l m a n a g e m e n t training sessions conducted during the Reporting Period8over RMB 21 million(including acquired companies)Winner Medical and its subsidiaries were not subject to environmental administrative penaltiesWe regularly carry out varied training on environmental protection by multiple ways. Internally, we offer operation and management training on pollutant discharge permits, training on environmental impact assessments for construction projects, and knowledge sharing of sewage treatment led by external experts. Externally, we are also engaged in a diverse range of external environmental protection activities, including publicity, training, and voluntary actions, aiming to bolster our team’s ecological conservation consciousness.Green and environmental initiativesThe Company calls on all employees to implement energy conservation and emission reduction through practical actions on the World Environment Day, such as having green and low-carbon travel and, saving resources.Volunteer activities for environmental protectionThe Company organizes the volunteer health running activity for environmental protection themed "I am a Practitioner for a Beautiful China", to promote the corresponding theme concept, and create a strong atmosphere of natural harmony, green health.Environmental emergency drillsThe Company and its subsidiaries have established leading groups for environmental emergencies and developed the Environmental Emergency Response Plan . We have enhanced our emergency response systems for environmental pollution accidents, bolstering our ability to manage major environmental pollution accidents and ensuring operational safety. Regular drills for environmental emergencies are carried out to prevent and minimize the occurrence of accidents.CaseWinner Medical (Shenzhen) conducted a "hazardous waste leakage" drillOn July 27,2023, Winner Medical (Shenzhen) conducted a "hazardous waste leakage" drill. The on-site disposal process of the drill took 30 minutes, effectively controlling environmental pollution and personal injury caused by hazardous chemical leakage, proving that the emergency rescue plan was scientific, applicable, and operable.The Scene of "Hazardous Waste Leakage" DrillVolunteer RunningEnvironmental Protection InitiativesWinner Medical complies with national environmental protection laws and regulations, processes pollutant discharge permits in accordance with relevant technical specifications, and has established an environmental management system. Meanwhile, we implement environmental impact assessments, prepare emergency plans for environmental incidents, and continuously improve our environmental management capabilities.5152to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Combating Climate ChangeAcross our product select ion, design, and manufactur ing processes, we di l igently consider environmental factors , collaborate with industry chain partners for innovation,advocate for the development of green and low-carbon research and demonstration projects, and promote comprehensive carbon management. In such way, we are committed to continuously improving our ability to mitigate and adapt to climate change.Carbon asset managementThe Company engages in the in-depth research on carbon peak and carbon neutrality. We proactively develop business in carbon trading and have issued the Carbon Asset Management Measures in accordance with relevant documents such as the Measures for the Administration of Carbon Emissions Trading (Trial) ,” to establish a carbon asset management system, and actively plan carbon trading actions.Product carbon footprint certificationThroughout the design phase, the Company prioritizes environmental considerations, employing green technologies to minimize environmental impact. We check the carbon footprints of our products from cradle to grave according to the four stages of the LCA lifecycle, and pass the carbon footprint certifications for products. In collaboration with leading enterprises, we produce environmentally friendly products. The entire process, including weaving, dyeing, finishing, and sewing, is conducted with a focus on environmental protection and sustainability, with carbon footprint certified.The Company has obtained carbon footprint certification for cotton products such as cotton soft tissues, baby hand and mouth wet tissues, and baby robe products. In 2023, we continued to cooperate with internationally renowned third-party organizations and planned to carry out carbon footprint certification for medical products such as gauze sheets, gauze balls, gauze pads, and cotton non-woven fabric sheets.Greenhouse gas emission performanceWinner Medical has made significant strides in reducing greenhouse gas emissions through management and practices. These include optimizing vehicle usage plans and travel routes, promoting the use of electric vehicles, and progressively eliminating petrol-powered forklifts to reduce Scope 1 carbon emissions. Additionally, we have incorporated a carbon emission management feature into the Win+ platform’s energy management system, paving the way for intelligent and digital carbon management.Carbon asset management system of the CompanyOrganizational structureCarbon asset management planCarbon inventoryRewards and penaltiesCarbon managementThe Carbon Asset Management Leading Group is responsible for building the Company's carbon emission and carbon asset management system, clarifying the responsibilities of the carbon emission and carbon asset m a n a g e m e n t d e p a r t m e n t s , a n d promoting the Company's energy saving, carbon reduction and carbon asset optimization and upgrading. Each branch (subsidiary) will implement the relevant targets and plans as scheduled.Each branch (subsidiary) shall establish and improve its internal assessment mechanism to supervise, inspect and assess the energy saving and carbon reduction work of itself, and give recognition and rewards to the collective and individual who make outstanding contributions in low carbon efforts. Accordingly, the Company will impose penalties for those that fail to pass the assessment.Annual reports will be prepared and monthly carbon emissions accounting will be launched to form ledgers and submit a monthly carbon emission report. Branches (subsidiaries) that are included in the s c o p e o f g o v e r n m e n t transactions and those that are not included in the scope of government t r a n s a c t i o n s w i l l b e managed separately.W e p r e p a r e a n n u a l accounting reports on ca r b o n e m i s s i o n s i n a cco rd a n ce w i t h t h e relevant regulations and factors, and make regular disclosure of carbon emissions information.20212021 20212021 33,592 116,373 82,781 0.3432 20222022 20222022 76,276 180,691 104,415 0.2951 20232023 20232023 55,593 156,219 100,626 0.3589Scope 1 GHG emissionsTotal GHG emissionsScope 2 GHG emissionsEmissions per unit of revenueUnit: tCO2e/RMB 10,000Unit: tCO2eUnit: tCO2eUnit: tCO2eData includes acquired companies5354to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Optimizing Resource and Energy UseEfficient use of energyIn compliance with the Energy Conservation Law of the People's Republic of China and other relevant regulations, we have developed relevant documents such as the Management Regulations on Energy Conservation and Consumption Reduction, and have established the EMS integrated energy consumption management system, including the Energy Management Manual , the Energy Conservation Operation Control Procedures, the Energy Data Collection Plan, the Annual Energy Conservation Measures Plan List and the Management Review Plan .In 2023, we introduced the Outline of Green Development Plan and launched the Win+ energy online monitoring platform for real-time data collection and online monitoring of energy consumption. We also executed a special energy-saving action plan with 34 energy-saving transformation projects across 11 categories to enhance energy efficiency and green energy use.During the Reporting Period, energy costs were saved by approximately RMB 4.04 million (excluding acquired companies such as Winner Guilin and Winner Pingan).Water conservationIn our water-saving management throughout our production and operational processes, we enhance water resource efficiency and minimize water use risks. Moreover, we advance reclaimed water recycling projects to reduce water pollution. Our new plant of Winner Medical (Jiayu) has invested more than RMB 4 million in building a reclaimed water recycling system, which is expected to achieve a recycling rate of over 60%.Green officeThe Company advocates green office, implements routine energy saving by seting energy-saving and environmentally-friendly reminders in public areas, and creating a green and environmentally-friendly workplace through digital office promotion and lighting control.CaseWinner Medical sets green plant benchmark in ChinaEnergy Conservation Measures for PlantsGreen Processing Techniques and ResultsWinner Medical (Wuhan)z has continuously improved energy performance through a systematic approach by establishing and implementing an energy management system and platform, passing ISO 50001 energy management system certification, implementing energy consumption quota management and other improvement measures, thus achieving energy process control, and promoting the continuous improvement of the energy management system. In 2023, the Winner Medical Factory was awarded the honorary title of "Green Factory", recognising its exemplary contributions to energy efficiency, emissions reduction, recycling, and environmental preservation.Indicator Unit 202120222023Non-renewable FuelPetroleum or crude oil d e r i vat i v e s ( s u c h a s gasoline, diesel, jet fuel, and heating oil)Gasoline consumption of the Company’s official vehicles ton of standard coal 131231Diesel consumption of the Company’s logistics vehicles ton of standard coal 5532132Natural gas (compressed natural gas, liquid natural gas, etc.) ton of standard coal 20,52219,61315,418Renewable Energy Biomass ton of standard coal 00744Energy PurchaseElectricityOutsourced power (Chinese Mainland Grid) ton of standard coal 17,15420,73318,905Outsourced power (southern China grid) ton of standard coal 0703698Outsourced power (central China grid) ton of standard coal 17,15420,03018,207Steam ton of standard coal 4,57415,04111,763Energy Consumption Intensity ton of standard coal/RMB 10,0000.11430.09050.119Major Techniques Energy Saving and Carbon Reduction ResultsLow-Temperature Pretreatment (Cold reactor pretreatment and low-temperature oxygen bleaching)Saved steam by 79%, water by 50%, electricity by 33%, and carbon emissions by 78%Wet Cloth Mercerizing Process Saved steam by 58%, water by 89%, and carbon emissions by 13% Efficient Water Washing Saved steam by 25%, water by 29%, and carbon emissions by 28% Winner Medical (Wuhan) successfully obtained ISO 50001 Energy Management SystemMotor renovation for efficiency improvementWaste heat recovery and utilizationControl system optimizationClean energy applicationsThe South District of Winner Medical (Huanggang) has renovated the permanent magnet energy-saving motors, replacing 8 motors with variable frequency drive permanent magnet synchronous motors, totaling 679kW. The annual income from energy-saving and cost reduction amounts to RMB 24,367,700.Qingshan Plant Area of Winner Medical (Chongyang) has built a 500 m3 high discharge tank, newly equipped with a 400t thermal energy recovery device, which can reduce sewage temperature and recover thermal energy. The annual income from energy-saving and cost reduction amounts to RMB 417,000.Winner Medical (Tianmen) has upgraded and renovated the automatic control of recycled water and hot water in two bleaching and stripping pots, as well as the control of waste cotton treatment fans. The annual income from energy-saving amounts to about RMB 20,000. A photovoltaic car shed (integrated project of photovoltaic power generation system, energy storage equipment, and charging station) is planned to be built in two new plant areas, with an expected photovoltaic installed capacity of 3.63 MW and an average annual green power generation of 3.33 million kWh.The Company promotes paperless office by building digital projects such as OA systems, SRM procurement management, and Win+ intelligent manufacturing platforms. The Win+ intelligent manufacturing platform has been employed to three plants, with a coverage rate of over 85% for the main manufacturing processes and a replacement rate of over 50% for paper documents, saving over 13 million sheets of paper annually.The Company uses energy-saving power supplies and lighting fixtures, and installs selective lighting switches to achieve partitioned lighting. The lights are turned on in need and they should be turned off when people leave. When there is sufficient natural light in public areas (such as locker rooms, restrooms, corridors, and stairwells), lights should not be turned on to prevent "continuous lighting". The use of smart lighting systems is promoted. For example, energy-saving lamps and smart lighting systems are used in new buildings to reduce lighting power consumption."Paperless" office Energy-saving lighting controlNote: Data includes acquired companiesWinner Medical prioritizes the efficient utilization of energy, water, and production materials, driving cost reductions and efficiency improvements through digital innovations.Honors and AwardsCertificate of "Green Factory"5556to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Enhancing Emission ManagementAdhering strictly to the Environmental Protection Law, the Environmental Impact Assessment Law , and other pertinent national laws and regulations, Winner Medical establishes and enforces environmental management regulations and protocols to oversee and regulate the Company’s pollutant discharge facilities and pollutant emissions and discharge.Gas emissionsWinner Medical diligently follows national emissions standards, such as the Integrated Emission Standard of Air Pollutants (GB16297-1996), the Emission Standard of Air Pollutants for Boiler (GB 13271-2014), and the Emission Standards for Odor Pollutants (GB14554-1993), aiming to lessen the emission of gaseous pollutants and minimize environmental impact.Liquid emissionsWinner Medical rigorously adheres to national emission standards, including the Discharge Standards of Water Pollutants for Dyeing and Finishing of Textile Industry (GB4287-2012) and the Integrated Wastewater Discharge Standard (GB8978-1996), to mitigate the release of liquid pollutants and minimize environmental impact. We employ a comprehensive approach combining "manual testing, entrusted monitoring, and online monitoring" for pollutant detection. Key subsidiaries responsible for producing wastewater discharge are fully equipped with online monitoring systems. These systems are interconnected with relevant government departments for real-time surveillance, and monitoring results are promptly published on the provincial pollutant platform.Solid wastesWinner Medical meticulously segregates hazardous wastes from general industrial wastes as per the Directory of National Hazardous Wastes , establishing relevant protocols for the management and disposal of hazardous and general industrial solid wastes produced during manufacturing processes.During the Reporting Period, all licensed emission subsidiaries complied with the emission standards for major pollutants such as exhaust gas and wastewater.Boiler Exhaust EmissionsWe exclusively use natural gas b o i l e r s a n d co n d u c t r e g u l a r monitoring in line with provisions of pollutant discharge permits. We prioritize eco-friendly boilers in the selection process to decrease nitrogen oxide emissions.Exhaust Gases from ProductionWe employ a catalytic oxidation + activated carbon and efficient RTO (Regenerative Thermal Oxidation) exhaust gas treatment process to meet pollutant discharge standards. Environmental protection facilities are maintained and managed by designated personnel, with comprehensive records of operation, maintenance, and regular monitoring conducted as per pollutant discharge permit requirements.CaseReclaimed water reuse systemThe plant of Winner Medical (Huanggang) significantly cuts water usage via a water circulation system. The production wastewater primarily originates from the spunlace (hydroentangling) process, degreasing/bleaching process, and the preparation of soft water. A substantial portion of the wastewater from the spunlace process is recycled back into production after treatment through the circulation system. The remainder of this wastewater and that from degreasing/bleaching processes are directed to our own sewage treatment station, where they undergo "hydrolysis acidification + biological contact oxidation" treatment before discharge. This wastewater is subject to online monitoring to ensure compliance.Disposal rate for both general industrial wastes and hazardous wastes100% 20212021 202120212021 20212021 20,984 23.09 288145.19 7.0 0.81 1.844 20222022 202220222022 20222022 20,05324.44 313155.34 5.54 0.363 2.65 20232023 202320232023 20232023 17,37519.65 308156.288.85 0.38 2.77Exhaust Gas Emissions(10,000m3) NOx(ton)Total Wastewater(10,000m3) Chemical Oxygen Demand(ton) Ammonia Nitrogen(ton)SO2(ton) PM2.5(ton)Hazardous wastes include items such as spent containers, waste activated carbon, and biological wastes.These are stored in designated areas compliant with the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023), meticulously recorded in a ledger, labelled appropriately, and regularly handed over to certified disposal agencies for centralized treatment.Moreover, specific management systems and emergency protocols are developed for hazardous wastes to mitigate risks such as leakage.Typically, solid wastes consist mainly of waste packaging and stickers, which are collected and processed by specialized recycling agencies.General wastes are categorized into recyclable and non-recyclable items, subsequently managed either by recycling agencies or disposed of by municipal sanitation department.General Solid WastesHazardous Wastes5758to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Promoting Green PhilosophyPromoting an eco-friendly lifestyleDedicated to raising eco-awareness among employees and consumers, we advocate for a comfortable, healthy, and environmentally friendly life concept. Through initiatives like promoting sustainable cotton culture with natural, soft cotton, we inspire a greener way of living, letting the power of cotton flourish. Supporting ecological conservationAs an environmentally conscious brand, Purcotton champions the use of eco-friendly materials and adopts green design principles, actively supporting ecological conservation with concrete actions. We urge the public to protect our planet, engage in social welfare initiatives, and embrace the principles of sustainability.CaseCaseCasePurcotton embarks on a green journey with “All the Way Forward” environmental advocacy documentary“WEEco Multi-purpose Cotton” campus initiativePurcotton and Blue Ribbon’s Pop-up Installation Art Exhibition on Environmental ProtectionStarting November 11,2023, the environmental documentary series "All the Way Forward" aired on China Dragon TV at 21:00 every Saturday. In this series, Purcotton, as a green lifestyle partner, joined forces with celebrities Hu Ge, Liu Tao, and Chen Long. Together, they engage in hands-on public welfare environmental efforts, embarking on a journey of green and low-carbon practices. The series delves into a broad spectrum of ecological issues, ranging from the conservation of biodiversity and restoration of ecosystems in Sanjiangyuan National Park to rescuing stranded whales and dolphins in Houhai Village, Hainan Province, and tackling marine plastic pollution. It emphasizes the safeguarding of various ecosystems, including mountains, seas, forests, farmlands, lakes, grasslands, and deserts.In 2023, Purcotton launched the “WEEco Multi-purpose Cotton” campus initiative, spreading the message of sustainable lifestyle in 296 universities across 50 cities. This campaign utilized public welfare lectures, package design contests, cotton-themed painting competitions, and online and offline campus green actions, fostering a deep connection between youth, nature, and artistic expression of the passion for environmental protection, spreading the message of sustainable lifestyle.Purcotton volunteers, alongside volunteers from Blue Ribbon Ocean Conservation Association and residents of Sanya City, collaborated with renowned actors Hu Ge, Liu Tao, and Chen Long to tackle plastic pollution and transform waste into artistic statements in Houhai Village, Sanya, Hainan. They launched a pop-up art exhibition on environmental protection and plastic recycling. This artistic endeavour, inspired by the story of a dolphin named "Huahua," sought to heighten awareness of marine wellness and motivate broader action to safeguard our seas."All the Way Forward" Public Welfare Green Journey“WEEco Multi-purpose Cotton” campus initiativeA pop-up art exhibition showcasing installations crafted from recycled plasticsFocusing on "sustainable cotton" and "sustainable techniques," Winner Medical champions the development and application of environmentally-friendly organic cotton and sustainable breeding techniques. Designing green products from the source, we embody the ethos of “Purcotton Changes the World," committing to natural preservation, human health, biodiversity protection, and promoting the virtuous circle of ecological system and sustainable development.5960Giving Back to the Societyto Build a Harmonious Society TogetherWinner Medical ensures that al l labor pol icies and operations comply with the latest regulatory requirements, optimizes the remuneration and benefit system, and formulates remuneration incentive mechanisms. The Company also establishes a sound occupational safety management system, and reasonably arranges employee work hours and vacations. Meanwhile, the Company values employee mental health, organizes various cultural and team building activities, and provides employees with a comfortable workplace, to enhance their sense of belonging and cohesion.2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd.6162to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Keen on Public Welfare and CharityAs an enterprise with social responsibility, Winner Medical has always been actively involved in social public welfare. For example, we develop a "public welfare donation project procedure" and continuously establish efficient donation channels and routes, to ensure timely responding to major events and delivering required materials to designated locations and the public.Winner Medical has organized a charitable donation activity targeting the elderly population, donating 5,424 boxes of materials including respiratory protection products and adult care products, with a total value of RMB 3.85 million.Purcotton has been awarded the title of "Children's Friendly Partner" for its donation of baby clothing, diapers, and other materials equivalent to RMB 22,000 to the Shenzhen Women and Children's Development Foundation; Purcotton has also donated mask supplies worth RMB 98,000 to the Foundation.Purcotton, in collaboration with Taobao and the China Aging Developmen Foundation, initiated the "Senior Sweetheart" charitable activity at the "2023 Double 11" Shopping Festival to show its care for the elderly left behind in rural areas. Purcotton donated adult pull-up pants worth RMB 50,000 and were awarded the honorary title of "Caring Enterprise".As the "Super Captain" on the International Working Women's Day, NicePrincess of the Purcotton collaborated with Tmall to carry out a charitable project, to show their caring for girls in remote mountainous areas. They filmed a charitable documentary, allowing more girls in mountainous areas to scientifically understand menstrual knowledge, and donating 10,000 pairs of NicePrincess sleeping pants, each of which worth RMB 7.9.We have donated 171 caring computer supplies to the Guangdong Provincial Education Foundation to establish a computer laboratory, allowing children in impoverished mountainous areas have access to computers to master practical computer skills, learn knowledge, and broaden their horizons.Caring for children in mountainous areasCaring for special groupsCasenear RMB18 millionDuring the Reporting Period, the Company's annual charitable donations amounted to In December 2023, after the earthquake in Jishishan County, Gansu Province, Winner Medical and Beijing Public Health Foundation donated over RMB 1 million in supplies, including emergency kits, medical surgical masks, surgical gloves, cotton sanitary tissues, and air-soft cotton thermal storage sets. Purcotton and its sanitary napkin brand, NicePrincess, urgently activated the disaster response and teamed up with the China Women's Development Foundation to donate 40,000 pairs of sleeping pants and 800,000 pieces of sanitary napkins to support medical institutions, disaster victims, and disaster relief personnel in the earthquake-stricken areas. The total market value of the donated supplies amounted to near RMB 2 million.Assistance to disaster-stricken areasOther charitable donationsWinner Medical and Purcotton donated high-quality health protection products and cotton daily necessities worth RMB 854,100 for the 2023 Shenzhen Women's Fashion "Micro Marathon" Competition.NicePrincess of Purcotton donated sanitary pads worth RMB 100,000 to the University of Science and Technology of China, conveying the " Nice For Her" concept of NicePrincess.Under the contact of members dispatched by the Urban Administration and Law Enforcement Bureau of Shenzhen Municipality, a counterpart assistance unit in Daba Town, Heping County, Heyuan City, Purcotton donated a batch of sunshade materials worth RMB 30,000 to the People's Government of Daba Town.From June 16 to June 25,2023, Winner Medical partnered with six schools in Longhua District to deliver the "Health Knowledge on Campus" public welfare courses for students. The courses, combining games and lectures, focused on the common health concepts including "hand hygiene" and "trauma care". The courses enabled children to realize the importance of hand hygiene and learn about the handwashing techniques. They also learned how to deal with falls, bruises, animal bites, and burns, and how to cope with special situations in life correctly and calmly, thus contributing to their healthy and positive development. Besides, Winner Medical donated over RMB1.13 million in health protection product, further ensuring a happy, safe, and healthy campus life for both teachers and students with our thoughtful care.Creating Public Welfare Courses to Safeguard Children's HealthCaseDonated computers to Qingyuan villageDonated to the Gansu earthquake Shenzhen Women's Fashion "Micro Horse" CompetitionThe "Health Knowledge on Campus" public welfare courses6364to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Protecting Employee Rights and InterestsWinner Medical protects the rights and interests of employees in accordance with laws. We firmly oppose gender discrimination and forced labor, uphold transparency and fairness in our recruitment, and provide competitive remuneration for employees. We also respect and protect employee privacy, actively implement democratic management, and value occupational health, thus effectively enhancing employees' sense of happiness, belonging, and security.Compliant employmentIn strict compliance with Chinese laws and regulations such as the Labor Law and the Labor Contract Law , the Company respects and protects human rights, and regulates employment procedures. We have revised the Anti-Discrimination Action Guidelines , and formulated the Employee Handbook , the Recruitment Management System and other institutional provisions to effectively safeguard the legitimate rights and interests of employees. We also sign labor contracts with employees in accordance with the law, firmly prohibit child labor, resist all forms of forced labor, and provide equal employment opportunities to all candidates and employees.Fair employmentIn line with the principles of openness, fairness, avoidance of hiring relatives of employees, as well as two-way selection, we adhere to the criteria of integrity & ability, fair competition and merit-based selection, except for official and collective transfers.DiversificationWe insist on the "four highs" talent concept and continuously explore diversified employee introduction strategies, committed to building a dynamic and innovative team, respecting and appreciating employee diversity, and striving to create an inclusive and open workplace.The Company clearly stipulates in the labor contract that the Company guarantees employees' rights to rest and leave in accordance with national regulations and the Company's system. If the Company violates regulations in command and forces r isky operations that endanger the personal safety of employees, employees have the right to refuse and are entitled to make suggestions, criticize , prosecute or accuse.Against forced labor and harassment abuseEmployee communicationThe Company actively creates a diversified employee feedback platform and unblocks the channels for employees to express their opinions and demands. Employees are allowed to reflect their demands and provide relevant opinions through the EMT meeting mechanism, rota talks, colleague bars, Win Circles, cultural ambassadors, and Winner Culture Talk.In 2023, based on the 2022 employee engagement survey, the Company focused on key needs and continuously made improvements and efforts around key measures such as "growth empowerment, employee care, employee communication, and shared values", striving to create a better, more efficient and more enjoyable workplace for everyone.We conduct 6 health nursing knowledge lectures for multiple schools including Luoba Middle School in Shix ing County, Shaoguan City and in Sinolink Primary School in ShenzhenWe donate 1,000 "Caring Kits for Goddess" to Longhua District Charity Association,122 boxes of protective masks to sanitation workers, and 4,628 cooling vests to flexible employment groups in Longhua StreetIn the 2023 campus activity themed "Rural Courses about Guangdong Museums", we actively supported the development of education and cultural and creativity in Luoba Town to facilitate rural vitalization, and received a letter of gratitudeCaseAdvocating to Clean Hands for a Healthy LifeForming the habit of disinfecting and cleaning hands is one of the effective measures to prevent and treat infectious diseases. On the occasion of the World Hand Hygiene Day, Winner Medical organized the "Hand Caring Day on May 5" series of activities. We organized lectures on hand hygiene knowledge for medical care personnel, a collection competition for infection control slogans, fun games for science popularization, and a commitment of medical care personnel to hand hygiene in cooperation with hundreds of hospitals and pharmacies across the country. Additionally, we provided training on hand hygiene knowledge and operations for patients. These were the most effective, economical, and simple ways to reduce hospital infections, prevent respiratory infectious diseases, and enhance public awareness of hand hygiene.Honors and AwardsHealth care knowledge seminar aactivities6566to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Remuneration and benefitsThe Company highly values employee remuneration and benefits by continuously optimizing systems related to remuneration management, and improving the employee benefit system. In addition to the "five-insurance and housing fund", commercial insurance, employee purchase, and anniversary gifts, in 2023, we optimized the insurance structure and adjusted it to a combination of "employer’s liability insurance + accident insurance", creating a more favorable business environment while ensuring the health and safety of employees.Occupational healthJob value assessmentThe Company designs a fixed remuneration system with fixed salaries in line with market levels and oriented towards high performing employees. The fixed salary for core backbones is in the 50th percentile of the market, and their salary reaches the 75th percentile of the market through performance bonus sharing.Remuneration incentive mechanismCaseCollaboration with Shenzhen Lansheng Brain Hospital to Carry out a Free ConsultationOn September 19,2023, Winner Medical and Shenzhen Lansheng Brain Hospital held a symposium and free consultation. Six experts led by Shenzhen Lansheng Brain Hospital provided a free consultation in the activity room on the 41st floor of Winner Medical. The experts patiently communicated and inquired about each consulting employee, and gave corresponding treatment suggestions based on their symptoms. They also popularized relevant medical and health knowledge and common sense of healthy living, and carefully answered questions about other diseases. This activity was welcomed and acclaimed by the Company’s employees.Honor Winner Medical (Jiayu), Winner Medical (Chongyang), Winner Medical (Huanggang), Winner Medical (Wuhan) and Winner Medical ( jingmen) have all obtained ISO 45001 occupational health and safety management system certificationWork-related fatalitiesOccupational diseases in the subsidiaries of the Group0 0 We continuously optimize systems related to employee remuneration, such as the Remuneration Management System, and the Management System f o r E m p l o y e e Pe r f o r m a n ce a n d Remuneration , as well as policies such as remuneration systems for various sales positions and great promotion incentive plans. We insist on the principle of "fixing the grade by post, fixing the salary by grade, rewarding by performance and changing the salary by post", and evaluate and distribute remuneration according to the final contribution.W e e s t a b l i s h a " s t r a t e g y -organization-individual" closed-loop management performance mechanism. Organizational performance is assessed level by level to individual performance by using the balanced scorecard. I n d i v i d u a l p e r f o r m a n c e correlates with organizational p e r f o r m a n c e . M e a n w h i l e , performance results are applied to bonus allocation.W e a d j u s t t h e t a r g e t b o n u s system to a performance sharing system and emphasize integrated teams rather than indiv idual contribution. A combination of "annual sharing bonus + short-term process incentives" is employed t o e f f e c t i v e l y e n c o u r a g e employees and promote their p e r f o r m a n c e g r o w t h , t h u s eventually enhancing enterprise competitiveness.The Company formulates and implements a management system for occupational disease prevention and control, strictly controls routine production, equipment operation, and employee work processes, regularly monitors occupational hazards in the workplace and conducts environmental testing for occupational health hazards within the scope. The Company also organizes health examinations for employees in various positions who come into contact with hazardous chemicals, and takes measures such as safety education, accident prevention, occupational injury prevention, and employee health care to ensure the occupational health of employees.total employees12,997Total new hires during the Reporting Period1,021Total labor discrimination incidents0malefemaleaged 30 and belowaged 31 to 40aged 41 to 50aged 51 and above19.84 45.06 28.48 6.6231.53 68.47 Gender structure（%）Age group（%）Free consultation6768to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Supporting Employee GrowthUnblocking development channelsThe Company values employee growth and career development. Aligning with our strategic business needs and the "business partners" talent philosophy, we establish and improve relevant management systems, and provide a sound channel and supportive environment for employees’ career development. Strengthening talent cultivationThe Company continuously refines its training system and actively carries out talent training projects with attention to employees'growth and development. In 2023, key projects such as the "Leadership Win," "Talent Win", and "Career Win" achieved with results, empowering the Company's key business and enhance organizational efficiency.Job grade systemWe have established a comprehensive job classification management system and completed the person-job matching project. This has enabled the development of dual channels for management and professional growth, clarifying the "ladder", "path", and "ruler" for employee promotion and development. In such way, guidance is provided for employee development, and outstanding employees are inspired to make rapid progress and promotion on the Company's value highland.Post qualification systemWe have established a post-qualification system based on competency and behavior, solidifying our systematic talent management. We also unblocked professional career development channels and built a transition mechanism between management and professional tracks, achieving reasonable talent mobility.Talent evaluation systemWe have established a standard talent evaluation system, and organized a talent review project once a year based on the Company's strategy. Evaluations are conducted on the leadership and potential of employees. The evaluation results serve as an important basis for employee selection, capacity improvement, promotion, and other aspects."Career Win"We provided online and offline training for new employees in social recruitment. Such courses as the Introduction to Winner Medical, the Winner Medical's Corporate Culture, and the Winner Medical's Product Training are organized to help new employees quickly adapt to the new environment, and gain a holistic understanding of the team, the Company, its corporate culture, and its core business. WIN-WINTalent Model of Winner MedicalNew employee onboarding2023 China Talent Management Reform Pioneer Award for PurcottonWINLeadership Model WIN Potential ModelLeadership WINWINPotential Core values: Hard work, innovation, self-criticism, and sustainable developmentWilling hugeInnovating strategyNumerous methodsInterpersonal insightInternal driveWiseTalent view: High quality, high efficiency, high performance, and high returnWise Wise Analytical ability [depth]Interpersonal Insight [Self]-insightInternal drive Rapid learning [performance]Internal drive [intrinsic]Broad perspective [breadth]Interpersonal understanding of [others]Insight Never-stopWIN PotentialWilling hugeCareer passionGood at managementGood at decision-makingSolid professional foundationWell-trained managementleadershipInnovating strategyNumerous methodsWINWinner Medical prioritizes talent cultivation. We continuously optimize talent allocation, establish a scientific talent management system, and have formulated the Winner Medical Training Management System and the Management Measures of Winner Medical for Internal Trainers . These measures facilitate strategic implementation, enhance the Company's core competitiveness, and achieve mutual growth and development between Winner Medical and our employees.Winner Medical Post-Qualification SystemWinner Medical’s Qualification StandardscompetenceChannel and pathBasic conditions(Experience, length of service, performance, and key events)Core competency (channel capability)behaviorProfessional Code of Conduct 1Knowledge and skills(Knowledge list, and skill List)Professional Code of Conduct NCorporate code of conductPlatform building(Product reuse + institutional process building)Organizational contribution(Knowledge sharing + talent cultivation)6970to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Project approval procedureTraining coverage rateTraining hours for all employeesAverage duration of employee training (including the companies acquired)Management personnelEmployees for general purposeshours89% 6099.56392,315As at the end of the Reporting Period,Members of the Winner Charity Association in total2,182 with a membership rate of 58%Number of trainees for different ranks of employeesCaring for the Life of EmployeesWinner Medical insists on the employee-oriented principle. Specifically, we show our care to employees by carrying out themed festival activities, fun team building events, eight employee club activities, heartfelt birthday celebrations, and celebrating for important festivals and personal milestones. Regular indoor and outdoor sports and health activities and lectures are organized, and the Winner Charity Association is established to care for the physical and mental health of employees and help employees in difficulties. These practical actions enhance the sense of happiness and belonging among our employees.CaseSpreading Warmth and Hope with LoveWinner Medical holds the "Lighting up Small Wishes" activity, where a wish can be made online and fulfilled offline. This initiative aims to grant positive desires and spread warmth to everyone. Since its launch, we have received over a hundred wishes from our employees. In line with the principles of "exerting our humble abilities to transmit positive energy" and "serving the people with concrete actions", the Company utilizes various means to make their wishes a reality. Even wishes outside the typical scope of fulfillment receive a response. Finally, while considering the number of online likes, we realized a total of 58 positive-energy small wishes.Winner Charity AssociationOnline and offline teaching in various teaching modules are designed to empower the training for new graduates. The curriculum covers cultural inheritance, product & business, institutional norms, and career shaping. Such training helps new graduates quickly integrate into the Company and successfully grow into workplace professionals at Winner Medical.Spring seedling training camp“Talent Win”The "Excellence Team Leader Training Camp" was held from March to June 2023, attended by outstanding team leaders from different production subsidiaries. This has laid a solid foundation for improving the on-site management ability of frontline management leaders (workshop team leaders) in the manufacturing segment of the Company, reserving a talent pool for management, and building an excellent team.Excellence team leader training campThe leadership advancement training project themed "Leadership Win" was rolled out from May to September 2023. This project empowered participants from four dimensions: SP, BP, operation, and management. Meanwhile, internal trainers, industry experts, and professional external lecturers jointly gave instructions, thus comprehensively expanding the horizons of participants, enriching their management ideas and methods, and providing strong support for organizational operations.Leadership advancement training campMember assistance project submissionSupplementation, collection and review of informationVoting by the evaluation committeeReview by the executive president Approved by the chairmanPublicity to all staffAssistance fund distributionMembers of the Charity AssociationThe Group Human Resources Management Center where the department of the applicants for assistance are located at Management committee of the Charity AssociationExecutive president of the Charity AssociationChairman of the Charity AssociationOverview of assistance projectsGroup financial management center1352467During the Reporting Periodinvested in assistance funds for employees in needRMB 60,000“Leadership Win”During the Reporting Period,Assistance funds for employees in the Winner Charity AssociationRMB 140,000"Lighting up Small Wishes" Activity7172to Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Love assistanceBasketball clubPraising cardsBadminton activities7172 Free consultationTeam building activity in wutongmountainGift package for Dragon Boat FestivalEmployee fun activitiesto Build a Solid Development Foundationto Build a Harmonious Society TogetherGiving Back to the SocietyPursuing Excellence Conducting Prudent Governance 2023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. to Embrace Low-Carbon Lifestyleto Spearhead Industry AdvancementPracticing Green Development Feedback73742023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. OutlookESGKey Performance IndicatorsIndexOutlook ESGKey Performance IndicatorsEnvironmentalAddressing climate changeEnergy and water resource managementHazardous emissions and waste2024 is a year teeming with both challenges and opportunities. This year, we will remain steadfast in our core principles: quality is superior to profit; brand is superior to speed; social responsibility is superior to corporate value. Embracing market changes, we will seize new opportunities, adapt to new environments, and venture into new markets with our innovation of new technologies. We will develop new products, and cater to new consumer demands, marching towards high-quality development with an even more positive outlook.Winner Medical will unwaveringly pursue our core strategy of leading products and excellent operation. In the medical consumables sector, we will continue to enhance product quality, bolstering research and development, and addressing the evolving needs of the medical industry. In the realm of consumer goods for healthy living, we will further drive product excellence and enhance user experience.Environmental protection and sustainable operation are principles we will always uphold. We are dedicated to crafting green products, advancing the development of biodegradable products, and actively supporting the national carbon peak and neutrality strategy with initiatives like "sustainable cotton," "sustainable techniques," and "green plant". Our aim is to lead the trend of big health and achieve harmony between people and the environament.Furthermore, we are committed to fulfilling our social responsibilities, focusing on employee growth and welfare, enhancing employee satisfaction, and strengthening partnerships with governments, communities, and charitable organizations. Together, we aspire to advance social welfare undertakings and contribute to a harmonious society.In 2024, Winner Medical will embark on a new journey with a relentless pursuit of excellence, a profound commitment to environmental protection, and a deep sense of social responsibility.ESGKPIs Unit 20222023Energy consumption intensity tce/RMB 10,0000.09050.119Gasoline used for official vehicles among self-owned vehicles tce 1231Diesel consumption of self-owned logistics freight vehicles tce 32132Natural gas (compressed natural gas, liquid natural gas, etc.) tce 19,61315,418Biomass tce 0744Total purchased electricity ( - Chinese Mainland) tce 20,73318,905Steam tce 15,04111,763ESGKPIs Unit 20222023Total exhaust gas emissions 10,000 m320,05317,375（NOx）Nitrogen oxides（NOx） ton 24.4419.65（SO2）Sulphur dioxide（SO2） ton 0.360.38Particle matter (PM2.5) ton 2.652.77Total amount of wastewater 10,000 m3313308Chemical oxygen demand (COD) ton 155.34156.28Ammonia nitrogen ton 5.548.85 73展望Note: The above data includes acquired companies.Note: Data includes acquired companies.OutlookESGKey Performance IndicatorsESGKPIs Unit 20222023Greenhouse gas emissions (Scope 1) tCO2e 76,27655,593Greenhouse gas emissions (Scope 2) tCO2e 104,415100,626Total greenhouse gas emissions tCO2e 180,691156,219Greenhouse gas emissions per unit of income tCO2e/RMB 10,0000.29510.3589Feedback75762023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. OutlookESGKey Performance IndicatorsIndexGovernanceCorporate governanceEmployee managementEmployee trainingESGKPIs Unit 20222023Shareholders’ Meetings - 13Board Meetings - 68Meetings of the Supervisory Board - 36Number of directors - 77Number of female directors - 22Number of independent directors - 33ESGKPIs Unit 20222023Total number of employees - 10,47912,997Employee labor contract signing rate % 100100Employee social insurance coverage rate % 100100Labor discrimination incident occurred - 00ESGKPIs Unit 20222023Total training hours for all employees hour 374403Average employee training hours(including acquired subsidiaries) hour 13.79.5Employee training coverage rate % 93% 89%SocialTechnology R&D and innovationWork safety and service qualityESGKPIs Unit 20222023Technology R&D investment million 488322Number of R&D personnel - 1,5881,259Patents obtained in total - 1,0641,375Invention patents obtained in total - 110140Utility model patents obtained in total - 610810Design patents obtained in total - 344425ESGKPIs Unit 20222023Number of administrative penalties due to work safety issues - 00Number of major work safety accidents - 00Number of safety inspections conducted time 89Number of work safety training conducted - 149Number of safety drills conducted by each branch time 1618Work-related fatalities - 00Customer satisfaction % 91.4392.74Customer complaint response rate % 100100Supply chainESGKPIs Unit 20222023Total number of suppliers - 842833Signing rate of supplier integrity agreements/ transparency agreements % 99100ESGKey Performance Indicators**Note: Data includes acquired companies.Feedback77782023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. OutlookESGKey Performance IndicatorsIndexIndexGRIStandards Disclosure ReferenceGRI 2: General Disclosures 20212-1 Organizational details About This Report2-2 Entities included in the organization's sustainability reporting About This Report2-3 Reporting period, frequency and contact point About This Report2-6 Activities, value chain and other business relationships About Us2-7 Employees Protecting Employees' Rights and Interests2-9 Governance structure and composition Improving Corporate Governance2-10 Nomination and selection of the highest governance body Improving Corporate Governance2-11 Chair of the highest governance body Improving Corporate Governance2-12 Role of the highest governance body in overseeing the management of impacts Improving Corporate Governance2-13 of responsibility for managing impacts Improving Corporate Governance2-14 Role of the highest governance body in sustainability reporting ESGManagement2-16 Communication of critical concerns ESGManagement2-22 Statement on sustainable development strategy ESGManagement2-29 Approach to stakeholder engagement ESGManagementGRI 203: Indirect Economic Impact 2016203-1 Significant indirect economic impacts Engaging in CharityGRI 205: Anti-Corruption 2016205-2 Communication and training about anti-corruption policies and procedures Adhering to Business EthicsGRI 301: Materials 2016301-2 Recycled input materials used CSRSpotlight301-3 Reclaimed products and their packaging materials CSRSpotlightGRIStandards Disclosure ReferenceGRI 302: Energy 2016302-1 Energy consumption within the organization High-efficient Energy Use302-2 Energy consumption outside the organization High-efficient Energy Use302-3 Energy intensity High-efficient Energy Use302-4 Reduction of energy consumption High-efficient Energy Use302-5 Reductions in energy requirements of products and services High-efficient Energy UseGRI 303: Water and Effluents 2018303-2 Management of water discharge- related impacts Water Conservation303-4 Water discharge Waste ManagementGRI 304: Biodiversity 2016304-2 Significant impacts of activities, products and services on biodiversity Supporting Ecological ProtectionGRI 305: Emission 2016305-1 Direct (Scope 1) GHG emissions Greenhouse gas emissions performance305-2 Energy indirect (Scope 2) GHG emissions Greenhouse gas emissions performance305-4 GHG emissions intensity Performance305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions Gaseous EffluentGRI 306: Waste 2020306-2 Management of significant waste-related impacts Solid Waste306-3 Waste generated Solid Waste306-5 Waste directed to disposal Solid WasteGRI 308: Supplier Environmental Assessment 2016308-1 New suppliers that were screened using environmental criteria Building a Responsible Supply ChainGRI 401: Employment 2016401-2 Benefits provided to full-time employees Caring for Employee LifeIndexFeedback79802023 Environmental, Social and Governance ReportWinner Medical Co., Ltd. OutlookESGKey Performance IndicatorsIndexGRIStandards Disclosure ReferenceGRI 403: Occupational Health and Safety 2018403-1 Occupational health and safety management system Occupational health403-2 Hazard identification, risk assessment and incident investigation Occupational health403-3 Occupational health services Occupational health403-4 Worker participation, consultation, and communication on occupational health and safety Occupational health403-5 Worker training on occupational health and safety Occupational health403-6 Promotion of worker health Occupational health403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Occupational health403-8 Workers covered by an occupational health and safety management system Occupational health403-9 Work-related injuries Occupational health403-10 Work-related ill healthGRI 404: Training and Education 2016404-1 Average hours of training per year per employee Supporting Employee Growth404-2 Programs for upgrading employee skills and transition assistance programs Supporting Employee GrowthGRI 405: Diversity and Equal405-1 Diversity of governance bodies and employees Compliant employmentGRI 406: Non-Discrimination 2016406-1 Incidents of discrimination and corrective actions taken Compliant employmentGRI 414: Supplier Social Assessment 2016414-1 New suppliers that were screened using social criteria Building a Responsible Supply ChainGRI 416: Customer Health and Safety 2016416-1 Assessment of health and safety impacts of product and service categories Ensuring Work SafetyGRI 417: Marketing and Labeling 2016417-1 Requirements for product and service information and labeling Building a Responsible Supply ChainFeedback1. 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Do you have any other comments or suggestions about this report Dear readers,Thank you for reading the 2023 Environmental, Social and Governance Report of Winner Medical Co., Ltd. In order to provide you and other stakeholders with more professional and valuable CSR information, please assist us in completing the questions in the feedback form so that we can further improve our social responsibility and sustainable development management. Please rate the following questions on a scale of 1 to 5 (1 being the lowest and 5 being the highest).Your contact information: Name: Tel: E-mail:Company: Job title:Fax:FeedbackAddress：42F, Building 2, Huilong Business Center, Beizhan Community Workstation, Minzhi Subdistrict, Longhua District, Shenzhen, Guangdong ProvinceTel：0755-28138888　Fax：0755-28134588　0755-28134688Email：investor@winnermedical.comSales hotline：400-689-2896Quality service hotline：400-689-2898Website：