Full Text of 2021 Annual Winner Medical’s 30th Co., Ltd. Stock abbreviation: Winner Stock code: 300888
Anniversary Medical
To enhance your health,
life and well-being
2021 FullAnnual Report
Winner Medical Co., Ltd.
To shareholders
Dear shareholders,
Thank you for your support, trust, help and companionship to Winner Medical!
In 2021, the global economy faced unprecedented challenges in post-COVID-19 era. In China, with
the rapid development of the Internet of Things (IoT), Cloud Services, Big Data and artificial
intelligence (AI) technologies, as well as the rise of a low-carbon economy and a new generation of
consumers gradually taking control of the discourse, Winner Medical ushered in new challenges and
opportunities.
In 2020, to deal with the sudden outbreak of the COVID-19 pandemic, Winner Medical, as one of
the companies closest to the center of the affected area and one of the earliest responders, provided
epidemic prevention products with fine quality and competitive prices for the majority of medical
staff and anti-epidemic workers, making due contributions and creating good operating results. In
2021, by returning gradually to normal from the non-normal year of the pandemic, Winner Medical
realized RMB 8.037 billion in revenue and RMB 1.239 billion in net profit attributable to
shareholders of the listed company, both down from the previous year. I apologize that Winner
Medical’s stock price fluctuated with the impact of the stock market due to greater uncertainties and
more severe challenges imposed by the pandemic plus regional conflicts since 2021, bringing
pressure and anxiety to our shareholders, though the Company significantly improved its
performance in terms of development strategy, business scale and brand reputation compare to the
pre-pandemic period.
As the first person responsible for the Company, I am fully aware of my responsibilities, and never
retreat in the face of difficulties, thus leading our team to conduct in-depth reviews, take every
opportunity and fight on the frontline to achieve our strategic goals.
We have always believed that it is important for companies to not only guarantee big short-term
gains, but also make plans for future sustainable growth. The year 2022 marks the beginning of
Winner Medical’s second thirty years. We can only live up to the expectations of our shareholders if
we could continuously innovate, specialize in our business, excel in our operations, build a
high-quality development business model, and drive Winner Medical to achieve high-quality,
sustainable, and high-quality growth.
Industry-leading R&D and Innovation
The year 2021 marks the thirtieth year of Winner Medical’s existence.
Over the past three decades, Winner Medical has been engaged in an industry that is small, with
limited entry threshold and particularly severe inter-industry competition. How did Winner Medical
manage to be the top in national export of medical dressings in its first ten years? It is because that
we expand by wining the trust of international customers with outstanding quality and services and
getting more cooperation opportunities and orders thanks to quality and integrity, while most
companies made quick money and competed for customers with lower prices.
We took the lead in building our own spinning and weaving mills, relying on the reliability and
stability of raw material quality to ensure the quality of finished products, while others did not
realize the quality of veil is the bottleneck of gauze quality which determines the quality of finished
products. We rapidly adjusted strategies by closing spinning and weaving mills, focusing on and
successfully developing pure cotton spunlace non-woven fabric, which became “a great innovative
technology in the textile industry”, while our counterparts produced spinning and weaving on a
large scale.
We gained market insights and consumer trends and keenly developed more than 10 world-first
products, including cotton tissues, wet tissues, sanitary pads with pure cotton surface, baby diapers
with pure cotton surface and non-woven disposable underwear, while competitors imitated our pure
cotton spunlace non-woven fabric proprietary products. We stick to the “cotton fiber only” principle,
and created Purcotton with the vision of “changing the world with pure cotton”, while our
counterparts imitated our products with chemical fibers.
Ten years ago, we started to independently develop silica gel technology, foam technology and
antibacterial technology, focusing on the research and development of basic materials for high-end
wound dressings. Nowadays, foam dressings and silica gel dressings are recognized and purchased
by international famous brands, and gradually become the “domestic alternative” high-quality,
high-end wound dressings for the Chine
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