[中报]稳健医疗(300888):2026年半年度报告（英文版）
原标题:稳健医疗:2026年半年度报告（英文版） Definitions Definitions Winner Group, Group, Company Winner Medical Co., Ltd. Reporting Period 1 January 2026 to 30 June 2026 Serious medical care under the medical business and Winner Medical consumer medical care business Shenzhen Purcotton Technology Co., Ltd. and its Purcotton subsidiaries, a wholly-owned subsidiary of the Company Zhejiang Longterm Medical Technology Co., Ltd., a Longterm Medical company in which the Company acquired a 55% stake Semi-Annual Report Company Overview Founded in 1991, Winner Group (300888.SZ) went public on the Shenzhen Stock Exchange in September 2020. Through 35 years of exploration and practice, it has evolved into a holistic health enterprise, synergistically converging medical innovation and consumer wellness ecosystems. Winner Group, driven by the vision of “Caring Health, Cherishing Life, and Protecting the Environment for A Better World”, owns two major brands: “Winner Medical” and “Purcotton”. Its products cover a wide range of segments including wound care, infection prevention, operating room consumables, personal care, home care, maternity and baby care, and home textiles and apparel. Adhering to the core business principles of “Quality over the Profit, Brand over the Speed, Social Value over the Corporate Value”, and guided by the development strategy of “Product Leadership, Operational Excellence, Brand Advancement and Digital Business Overview Global Production Capacity Global Production Capacity Guangdong Province (1), Hubei Province (8), Hunan Province (1), Zhejiang Province China (2), Guangxi Zhuang Autonomous Region (1), Anhui Province (1) Overseas Mexico, Vietnam, the United States, the Dominican Republic Awards 01 The Project of Winner Medical was awarded 08 The "Baby Welcome Gift Organic Cotton 10- the second prize in the Science and Piece Set Gift Box" submitted by Shenzhen Technology Progress Awards by the China Purcotton Technology Co., Ltd. was selected National Textile and Apparel Council for the "2025 Top Ten Innovative Textile 02 Winner Medical (Huanggang), Winner Products" list Medical (Jiayu), and Winner Medical 09 The comfort evaluation of Purcotton's pure (Tianmen) were awarded the "Five-Star cotton sleepwear was included in the "Science Environmental Factory" by the China and Technology Guidance Project of the China Nonwovens & Industrial Textiles Association National Textile and Apparel Council" 03 In July 2026, Wind updated its annual ESG 10 The Company was awarded the highest A rating, upgrading the Company from A to AA rating for information disclosure of listed 04 Winner Medical (Jingmen) received the Gold companies by the Shenzhen Stock Exchange Medal on the Ecovadis platform for 2024 05 Winner Medical (Chongyang) received the 11 Selected for 2025 Outstanding Practice Cases Gold Medal on the Ecovadis platform in Sustainability of Listed Companies by the 06 Purcotton was recognised as a "Continuous China Association for Public Companies Innovation Unit" by the Ministry of Industry 12 Selected for 2024 Best Practice Cases in the I. Company Information I. Company Information Stock Exchange Shenzhen Stock Exchange Chinese Name 稳健医疗用品股份有限公司 Abbreviated Chinese Name 稳健医疗 English Name (if any) Winner Medical Co., Ltd. Abbreviated English Name (if any) Winner Medical Legal Representative Li Jianquan II. Contact Information 2. Designated Locations for Information Disclosure and for Keeping Records Whether information disclosure and the place where the semi-annual report is kept were changed during the Reporting Period ?Applicable √N/A The stock exchange website and media name and website for disclosure of the Company's semi- annual reports, and the location for keeping the Company's semi-annual reports remained unchanged during the Reporting Period. For details, please refer to the 2025 Annual Report. 3. Change of Registration Whether the registration status was changed during the Reporting Period ?Applicable √N/A 2. Designated Locations for Information Disclosure and for Keeping Records Whether information disclosure and the place where the semi-annual report is kept were changed during the Reporting Period ?Applicable √N/A The stock exchange website and media name and website for disclosure of the Company's semi- annual reports, and the location for keeping the Company's semi-annual reports remained unchanged during the Reporting Period. For details, please refer to the 2025 Annual Report. 3. Change of Registration Whether the registration status was changed during the Reporting Period ?Applicable √N/A End of the Reporting End of the previous end of the Reporting Period year Period compared to the end of the previous year Total assets (RMB) 18,971,905,602.01 18,404,858,027.22 3.08% Net assets attributable to shareholders 11,682,259,501.02 11,516,711,030.45 1.44% of listed companies (RMB) V. Differences in Accounting Data under Domestic and Overseas Accounting Standards Semi-Annual Report The Company had no difference in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards during the Reporting Period. 2. Differences in Net Profit and Net Assets between Financial Reports Prepared under Overseas Accounting Standards and Chinese Accounting Standards ?Applicable √N/A The Company had no difference in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese Accounting Standards during the Reporting Period. VI. Items and Amounts of Non-recurring Gains and Losses Semi-Annual Report The Company had no difference in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards during the Reporting Period. 2. Differences in Net Profit and Net Assets between Financial Reports Prepared under Overseas Accounting Standards and Chinese Accounting Standards ?Applicable √N/A The Company had no difference in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese Accounting Standards during the Reporting Period. VI. Items and Amounts of Non-recurring Gains and Losses Publicly Issuing Securities – Non-recurring Gains and Losses are classified as items of recurring gains and losses √Applicable ?N/A Item Reasons Complies with national policy regulations, meets Cotton transportation subsidies established standards, and has a continuing impact on profit or loss Interest income from large-denomination certificates The Company's routine cash management practices, of deposit with a continuing impact on profit or loss Semi-Annual Report I. Main Operations of the Company during the Reporting Period The Company is subject to the disclosure requirements for “Medical Device Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 4 – Industry Information Disclosure for Growth Enterprise Market. The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 – Industry Information Disclosure. (I) Main Operations of the Company Winner Group, driven by the vision of “Caring Health, Cherishing Life, and Protecting the Environment for A Better World”, owns two major brands: “Winner Medical” and “Purcotton”, In terms of distribution, Winner Medical pursues a three-pronged approach: “overseas business + domestic professional medical market + daily consumer medical market”. Through OEM, ODM, and its own brand, Winner Medical exports to over 110 countries and regions. This brand’s high quality has earned widespread recognition from hospitals and trust from consumers in the domestic market, resulting in higher brand awareness and a stronger reputation. Looking ahead, Winner Medical will accelerate R&D in biomedical and tissue engineering, adhering to the innovation philosophy of technology-driven development and product upgrades, prioritizing product leadership and advancements in basic materials. By integrating Chinese manufacturing with the global supply chain and expanding into global markets, Winner Medical continues to advance towards its strategic goal of becoming a “one-stop solution for medical consumables”. spunlace non-woven fabric technology. Capitalizing on the natural, soft, breathable, biodegradable, and eco-friendly properties of cotton fiber, the Group launched the brand Purcotton in 2009, innovatively applying rigorous production standards born of its medical heritage to pure cotton goods. From its inception, Purcotton has insisted on using high-quality cotton from around the world, maintaining strict quality control, and aiming to build a nationally trusted brand. Driven by the vision of "Pure Cotton Changes the World", Purcotton continuously promotes the benefits of cotton and has pioneered over ten new product categories, including cotton tissues, pure cotton top sheet sanitary napkins, and pure cotton top sheet diapers. Currently, Purcotton operates hundreds of brand stores in over 100 cities across China and has established an omni-channel sales network across major e-commerce platforms, social commerce platforms, and nationally renowned supermarket chains. Leveraging its core competitive edges of "Medical Heritage; Cotton-Centric Philosophy; Quality DNA", Purcotton has cultivated a brand image of "Comfort Commitment; Health Assurance; Eco-Consciousness", earning the favor of a broad consumer base. In the future, Purcotton will remain committed to its brand (II) Main Products and Applications The Company’s products in the medical segment include advanced wound dressings, operating room consumables, traditional wound care and bandaging, infection prevention, healthcare and personal care, and other products. The products in the consumer segment include dry and wet cotton tissues, feminine hygiene products, other non-woven products, baby and child apparel and products, adult apparel, and other woven products. The main product categories and illustrations of some products in the Company's medical segment are shown below: (II) Main Products and Applications The Company’s products in the medical segment include advanced wound dressings, operating room consumables, traditional wound care and bandaging, infection prevention, healthcare and personal care, and other products. The products in the consumer segment include dry and wet cotton tissues, feminine hygiene products, other non-woven products, baby and child apparel and products, adult apparel, and other woven products. The main product categories and illustrations of some products in the Company's medical segment are shown below: Applied in wound care The main product categories and selected product illustrations from the Company's consumer business are shown below: The main product categories and selected product illustrations from the Company's consumer business are shown below: Sanitary napkins, overnight Feminine hygiene products pads, etc. (III) Main Business Model Over the 35 years of continuous exploration and development, Winner Group’s business model has undergone significant transformation and upgrading. Our business scope has expanded from medical consumables to consumer goods; our business model has shifted from OEM to proprietary brand building, from B2B to B2C, from a sole focus on overseas markets to a balanced approach between domestic and international markets; and our listing status has Semi-Annual Report Currently, Winner Group has upgraded its digitalization from back-office support to a strategic infrastructure spanning the entire value chain, with a "small front platform + big middle platform" system established to balance resource concentration and value creation. In R&D, we focus on independent development of core basic materials and continuous iteration and upgrading of key product categories. Our medical sector actively pursues global patent and product registration strategies, while our consumer goods business leads the development of several national standards and conducts carbon footprint verification for various products. Simultaneously, we actively promote smart manufacturing and green manufacturing technologies to enhance production efficiency and energy management. In procurement, we utilize diverse strategies, including strategic sourcing and centralized purchasing, combined with mechanisms such as supplier qualification, tiered classification management, and performance evaluation, to build a sustainable supply chain ecosystem. We leverage digital systems like SRM (IV) Key Performance Drivers 1. Alignment with industry trends: medical and consumer sectors in rapid development In recent years, improvements in global healthcare standards and increasing demand for daily healthcare have driven a steady growth in the medical industry. Globally, the aging population and rising healthcare needs are expanding the medical device market, providing ample room for industry development. Domestically, increasing government support for the medical device industry and accelerated import substitution are creating a favorable environment for medical consumables. Furthermore, the implementation of policies such as centralized procurement, volume-based procurement, SPD, and DRG is continuously optimizing the medical consumables industry towards stricter quality standards, transparent competition, and higher requirements for comprehensive capabilities in R&D, service, and distribution. These industry changes benefit large, integrated companies and are expected to increase industry concentration. In the consumer goods industry, steady macroeconomic recovery and stable income growth are terminal sales”. Winner Medical maintains stringent quality standards throughout its history and established an international-level quality management system at the initial stage of its engagement in the industry. Its products have received authoritative international certifications, including the EU CE marking, US FDA clearance, and Japanese Ministry of Health, Labour and Welfare approval, establishing global credibility for the brand. Through strategic acquisitions of leading companies in niche segments, such as Longterm Medical, Winner Medical (Hunan), and Winner Guilin, Winner Medical rapidly entered the injection and puncture consumables and latex gloves markets, laying the foundation for a one-stop medical consumables solution. Semi-Annual Report pursues a three-pronged distribution strategy: “overseas business + domestic professional medical market + daily consumer medical market”. In particular, the Company’s rapid provision of high-quality products in recent years significantly enhanced brand awareness and reputation, leading to the rapid development of its distribution channels. While strengthening its core business, Winner Medical also accelerates its global expansion through mergers and acquisitions. The acquisition of a controlling interest in the US-based medical company GRI strengthens its overseas production capacity, sales channels, and localized operations. In the future, Winner Medical will continue to advance towards its strategic goal of becoming a “one-stop solution for medical consumables”. Purcotton, the Winner Group’s consumer goods brand, was established in 2009 with the vision of “Pure Cotton Changes the World”. Adhering to the principle of “We focus on 100% cotton proprietary technology, the “pure cotton spunlace non-woven fabric” process has seen its application cross over from the medical sector to consumer goods, pioneering new categories such as cotton tissues and cotton inner layer masks. The Group’s two major business segments centrally procure raw materials like cotton, which enhances bargaining power and stabilizes costs. Furthermore, the sharing of production, warehousing, and logistics across the entire industry chain effectively reduces manufacturing and management costs. Simultaneously, the medical heritage in quality control provides a solid foundation of quality for Purcotton’s safety and trust, enhancing Purcotton’s professional credibility, brand reputation, and customer loyalty. The synergistic and balanced development of these two business segments creates complementary growth engines, strengthens the Company’s resilience against economic cycles, effectively balances short-term industry fluctuations with long-term performance growth, and Winner Group embraces the long-termism and altruism philosophy, prioritizing brand ethics and adhering to compliant operations and sustainable development. We uphold the core business principles of “Quality over the Profit, Brand over the Speed, Social Value over the Corporate Value” to ensure high-quality products and services. Guided by the values of “Relentless Endeavor; Pioneering Innovation; Self-Critique; Long-Termism”, we remain committed to our entrepreneurial spirit and brand-building mission. Throughout our development, we adhere to the brand ethics of “Integrity in Operation, Respect for Consumers, Fair Competition, Social Responsibility (ESG), Intellectual Property Rights, Continuous Improvement”, integrating compliant operations and social responsibility into our corporate development, earning widespread recognition and fueling brand building and long-term growth. 3. Brand Advancement Towards Centennial Visionary Winner With a Centennial Visionary Winner, Winner Group is committed to brand advancement. In the medical field, Winner Medical has established a sound reputation for professionalism, innovation, and high quality over 30 years, becoming an industry benchmark. In the consumer goods field, upgrading of our production processes, achieving automated equipment operation throughout the entire process from raw materials to finished products. We also actively leverage AI tools to empower operations, and continue to strengthen our efforts in expansion of deep coverage across all business segments, solidification of data foundation, process streamlining and efficiency leap-up, and deep AI empowerment in key scenarios to establish a robust bedrock for value upgrades across every business sector. In terms of refined channel operations, we prioritize both online and offline channels. Offline stores enhance the consumer experience through optimized layouts and improved services, while online channels leverage precise management and targeted Semi-Annual Report 6. Organization and Talent: Building an International Professional Team Winner Group is dedicated to establishing a systematic organization and talent development program encompassing talent acquisition, training, assessment, and incentives. The Company actively promotes the Four-High Talent Philosophy – "High Personal Quality; High Academic Qualifications; High Performance; High Compensation" – with the goal of developing Winner career partners and continuously providing a nurturing environment for talent growth. In terms of organization, the Company is building professional teams that support integrated business operations, focusing on "Organizational Capability, Strategic Goal Enablement", and continuously improving organizational efficiency through various methods. In terms of incentives, we actively implement performance-based sharing systems to foster a results-oriented corporate culture. We also utilize tools such as equity incentives and employee stock ownership In the first half of 2026, the external environment remained complex and challenging. Factors such as RMB appreciation, rising raw material prices, and geopolitical conflicts had a certain impact on the Company's production and operations. Winner Group adhered to the strategic guidelines of "Product Leadership, Operational Excellence, Brand Advancement, and Digital Empowerment," rising to challenges, proactively seeking breakthroughs, and navigating pressure to achieve growth in both revenue and profit, demonstrating the resilience of the Company's business. During the Reporting Period, the Company achieved operating revenue of RMB5.49 billion, representing a year-on-year increase of 3.6%. Net profit attributable to shareholders of the listed company was RMB510 million, while net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB460 million, representing year-on-year increases of 4.4% and 0.4%, respectively. ① Medical consumables business: full-scale breakthroughs in high-end positioning, brand building, and global expansion Committed to developing into a brand that provides a "one-stop solution for medical consumables", Winner Medical's products encompass advanced wound dressings, operating room consumables, healthcare and personal care products, infection prevention products, and traditional wound care and bandaging products. The Company prioritizes R&D investment and holds a significant advantage in the number of medical product registration certificates, establishing a competitive barrier in the stable medical sector. In the first half of 2026, the medical segment generated operating revenue of RMB2.59 billion, accounting for 48% of the Company's main business revenue and representing a year-on-year increase of 2.9%. Gross margin was 38.7%, up 1.3 percentage points from the same period last year. Despite external challenges, the medical segment maintained steady growth. By product category, operating room consumables, including surgical gloves, surgical packs, In the consumer products business, Purcotton has built a loyal customer base seeking "Reassurance, Wellbeing, Sustainability" supported by its three core competitive advantages: "Medical Heritage; Cotton-Centric Philosophy; Quality DNA." During the Reporting Period, Purcotton implemented a popular-product strategy, refined channel operations, remained focused on delivering value to consumers, and continued to strengthen its brand. In the first half of 2026, Purcotton achieved operating revenue of RMB2.84 billion, accounting for 52% of the main business revenue and representing a year-on-year increase of 3.6%. Gross margin and operating margin continued to improve steadily. Semi-Annual Report million during the Reporting Period, representing a year-on-year increase of 10.4% (19.3% in the second quarter). Multiple cotton tissue products consistently ranked among the top sellers on major online platforms. In the sanitary napkin category, "Nice Princess," leveraging its "Five Supers" pure cotton sensory technology (super absorption, super breathability, super softness, super eco-friendliness, and super convenience) and Winner Medical's safe and hygienic production environment, achieved cumulative operating revenue of RMB480 million during the Reporting Period. Growth remained under some pressure due to the high base from the previous year (the year-on-year growth rate in the first half of 2025 was 68%), but the year-on-year decline narrowed quarter by quarter. In adult apparel, technologies from the "Cotton Tech" platform (Cotton Soft, Cotton Breathable, Cotton Warm, Cotton Cool, Cotton Anti-UV, Cotton Anti-Bacterial, Pure Cotton Core Technology, etc.) have been fully applied across products. The Company strategically focused on close-to-skin categories such as underwear and loungewear, ③ Analysis of the Company's profitability and assets In the first half of 2026, the medical business faced significant cost-control challenges from rising raw material prices and sea freight costs. Through comprehensive measures, including new product iteration, cost reduction, and efficiency improvements, the Company increased the gross margin of its medical main business by 1.3 percentage points to 38.7%. However, the appreciation of the RMB adversely affected the export business, resulting in a 1.5-percentage-point decline in operating margin to 7.1%. For the consumer products business, the Company focused on strategic products, strengthened discount management, and refined its operations to mitigate the impact of rising raw material prices. As a result, the gross margin and operating margin of the main business both increased by 0.2 percentage points, reaching 58.9% and 14.2%, same period last year. In terms of assets, as of the end of the first half of 2026, the Company's total assets reached RMB18.97 billion, an increase of 3.1% from the beginning of the year. The asset-liability ratio was 34.2%, remaining at a relatively low level. Cash and wealth management products totaled RMB6.66 billion, accounting for 35.1% of total assets. Overall asset quality remained strong. In terms of shareholder returns, the Company continued to implement its "Dual Improvement of Quality and Return" action plan, rewarding shareholders for their support through consistent cash dividends and share repurchases. The profit distribution plan for the first half of 2026 is as follows: a cash dividend of RMB5.0 per 10 shares (tax inclusive), with a proposed total cash dividend of RMB290 million. During the first half of the year, the Company paid RMB130 million in cash for share repurchases. Together, these two items accounted for approximately 81.2% of the net profit attributable to shareholders of the listed company for the first half of 2026. On 30 April 2026, the Company simultaneously disclosed the "Future Three-Year Shareholder Return Plan (2026-2028)" and the "Announcement on Repurchase of Company Leadership, Operational Excellence, Brand Advancement, and Digital Empowerment," elevating the brand development of Winner Medical and Purcotton to new levels. High-profile presence at CISCE, continuously amplifying brand visibility. In June, Winner Medical and Purcotton participated in the 4th China International Supply Chain Expo (CISCE). As two leading companies in the Healthy Life Chain Pavilion, they showcased a complete ecosystem spanning from cotton fields to operating rooms under the theme "One Cotton Flower Changes the World," attracting extensive coverage from authoritative media outlets including CCTV, CCTV.com, Xinhuanet, and People's Daily Online. Semi-Annual Report ① Winner Medical brand building Led by its green operating room strategy, accelerating the development of a professional brand system. Centered on its comprehensive "green operating room" solution, the Company is advancing toward its strategic goal of becoming "China's No. 1 green operating room brand." In the first half of the year, the Company actively participated in leading domestic and international academic conferences, independently organized in-hospital symposiums and departmental meetings, and engaged deeply in the optimization of clinical pathways through initiatives such as health economics research. These efforts have helped elevate its products from being merely "market accessible" to becoming the "preferred clinical choice," further strengthening Winner Medical's position as a trusted brand among healthcare professionals worldwide. Brand warmth and professional expertise advancing in parallel. By extending medical-grade and the "Newborn Sense of Security Protection Plan." Extending beyond products to knowledge support and caring services in urban public spaces, the initiative brought the brand proposition "For the First Piece of Newborn, Choose Purcotton with Peace of Mind" to life and further embedded it in consumers' minds. In May, Nice Princess's "Beauty for Her" campaign returned, partnering with the China Hearing Medical Development Foundation to launch the "Menstrual Care Action for Hearing-Impaired Women." Through health education and care packages, the campaign delivered warmth and support to women with hearing impairments. On May 29, Purcotton's city flagship store at Xiamen MIXC opened, with "More Comfortable Life with Purcotton at Home" as its design concept. Featuring six major lifestyle scenarios, the store offers an immersive experience of a comfortable, healthy, and eco-friendly pure cotton lifestyle. In the first half of 2026, Winner Medical continued to advance innovation in pure cotton spunlace non-woven materials, advanced wound care technologies, and cutting-edge biomaterials, with a focus on upgrading core material formulations and continuously advancing product and technology development. In the field of operating room consumables, the Company continued to advance its strategy of "replacing synthetic fibers with pure cotton" while further enhancing the performance of pure cotton spunlace non-woven fabrics. By optimizing fiber interweaving processes and finishing technologies, the Company significantly improved the bacterial barrier properties, blood penetration resistance, and wearing comfort of high-volume consumables such as surgical gowns, further advancing its end-to-end "green operating room" solution. In the advanced wound dressings sector, the Company continued to strengthen its technological capabilities and domestic substitution strategy, focusing on the independent R&D and production of core raw materials for advanced wound dressings. Class III hydrocolloid dressings have entered the registration stage, while new-generation functional scar dressings and medical hydrogel dressings have successfully obtained medical device registration certificates. In promoted collaborative innovation and commercialization across cotton-based materials, weaving and functional technologies, and end products, comprehensively enhancing product experiences across multiple scenarios. The Company's core R&D achievements during the period were significant. In spinning technology, ultra-low-twist, high-strength yarns entered mass production, achieving a 10% reduction in twist while maintaining stable strength. The fabric's anti-pilling performance reached Grade 4, enhancing the overall quality of intimate wear, baby and children's products, and home bedding. Wind Soft Cotton 5.0 was also upgraded, with a 45% increase in fluffiness Semi-Annual Report In the fabric field, the Company independently developed a high-elasticity technology for pure cotton warp-knitted pants, optimizing fabric stability and stretchability to address deformation and restricted movement after prolonged wear. It also developed an innovative pure cotton softshell composite fabric that combines warmth, abrasion resistance, deformation resistance, and fluorine-free water repellency while retaining the breathability and skin-friendly properties of pure cotton, making it suitable for commuting and light outdoor activities. At the same time, the Company completed process upgrades for 200S high-count yarns, snow-touch fabrics, and self-softening technologies, significantly improving the texture and comfort of baby and children's products, intimate wear, and home textiles. In functional materials, the Company implemented pure cotton odor-control, wash-resistant, and quick-drying finishing technologies to effectively address issues such as odor after prolonged operations. The Company continued to enhance its AI application framework around a unified AI entry point, intelligent execution capabilities, and an enterprise-level technology foundation, steadily expanding AI applications from employee productivity scenarios to professional business processes and business decision-making. Based on business needs, the Company introduced and adapted mainstream large language model capabilities, strengthened the integration of knowledge, data, processes, and AI, and simultaneously enhanced data security, access controls, compliance reviews, and human review mechanisms. The medical business segment continued to advance the digitalization of marketing and customer operations by upgrading the end-to-end customer relationship management system for domestic retail and strengthening customer management, sales process collaboration, and marketing activity support. The development of the overseas core business management system made phased progress, with financial shared services platform progressed in an orderly manner, with continuous improvements in shared services, organizational collaboration, approval efficiency, and the employee experience. The Purcotton business accelerated the integration of online and offline operations with AI applications, continuously strengthening its digital foundation of "unified platform, data-driven, and intelligent empowerment" across key areas including products, users, stores, marketing, and fulfillment. In product and store operations, the Company promoted applications such as intelligent picking, intelligent store inspections, and assisted display recognition, improving store operating standards and execution efficiency. In user operations, the Company applied capabilities such as intelligent customer outreach, consumer feedback analysis, and intelligent marketing to translate user insights into product and service improvements and support the transition of member operations from scale-driven growth to more refined, tiered management. In business management, the Company strengthened data analysis, anomaly detection, and operational decision support, improving management efficiency across multiple levels of the organization. The manufacturing and supply chain segment continued to advance financial shared services platform progressed in an orderly manner, with continuous improvements in shared services, organizational collaboration, approval efficiency, and the employee experience. The Purcotton business accelerated the integration of online and offline operations with AI applications, continuously strengthening its digital foundation of "unified platform, data-driven, and intelligent empowerment" across key areas including products, users, stores, marketing, and fulfillment. In product and store operations, the Company promoted applications such as intelligent picking, intelligent store inspections, and assisted display recognition, improving store operating standards and execution efficiency. In user operations, the Company applied capabilities such as intelligent customer outreach, consumer feedback analysis, and intelligent marketing to translate user insights into product and service improvements and support the transition of member operations from scale-driven growth to more refined, tiered management. In business management, the Company strengthened data analysis, anomaly detection, and operational decision support, improving management efficiency across multiple levels of the organization. The manufacturing and supply chain segment continued to advance expenses R&D expenses 192,440,074.86 194,377,566.90 -1.00% Net cash flows from operating 313,432,891.06 339,925,774.07 -7.79% activities Net cash flow Primarily due to a higher purchase from investing -300,742,384.15 524,259,605.55 -157.37% of wealth management products activities during the period Net cash flow Primarily due to lower cash from financing 243,072,314.02 -741,438,610.09 132.78% payments for the repayment of activities debts during the period Significant changes in the profit composition or profit source of the Company during the Reporting Period ?Applicable √N/A There was no significant change in the profit composition or profit source of the Company during the Reporting Period. Products or services accounting for more than 10% Consumer goods – 577,238,711.57 180,864,466.20 68.67% 10.83% 7.09% 1.09% adult apparel By regions Domestic 3,841,148,120.05 1,801,648,431.79 53.10% 3.15% 3.15% 0.00% Abroad 1,591,074,851.56 954,215,843.54 40.03% 3.55% -1.00% 2.75% The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 – Industry Information Disclosure. Unit: RMB The Company is subject to the disclosure requirements for “Textile and Apparel Related Business” in the Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 3 – Industry Information Disclosure. Unit: RMB By industries Consumer goods 2,844,222,859.14 1,170,012,868.47 58.86% 3.60% 3.02% 0.23% Number of Total Number of new stores closed at Number of area Brands Store type stores during the the end of the Reason for closures stores (square involved Reporting Period Reporting meters) Period Store closure due to Directly 387 113,936 6 6 contract expiration and Purcotton operated strategic planning Store closure due to Franchised 121 26,476 5 2 contract expiration and Purcotton strategic planning stores, or vice versa. Such conversions are not counted as new store openings or closures, and the opening balances have been adjusted based on the number of stores. Total area of directly-operated stores and store efficiency stores, or vice versa. Such conversions are not counted as new store openings or closures, and the opening balances have been adjusted based on the number of stores. Total area of directly-operated stores and store efficiency Less than 300 227 47,803.43 31,237.08 31,173.21 0.20% square meters 300-500 108 39,178.20 21,312.12 21,714.59 -1.85% (RMB0'000) status stores meter) East Purcotton China Directly directly Zhejiang- Consumer Leased by 2026 1,427.00 668.83 Retail operated 3 operated Shanghai- goods Purcotton store store Fujian Region East Purcotton China Directly directly Consumer Leased by Jiangsu- 2026 211.00 155.43 Retail operated 1 operated goods Purcotton Anhui store store Region Purcotton Directly North Consumer Leased by directly 2026 360.00 182.17 Retail operated 1 China goods Purcotton operated store Purcotton Directly directly Northwest Consumer Leased by 2026 527.00 194.34 Retail operated 1 operated China goods Purcotton store store Purcotton Franchised North Consumer Franchised franchised 2026 414.00 61.15 Retail by 2 China goods stores stores Purcotton Purcotton Franchised South Consumer Franchised franchised 2026 208.00 42.01 Retail by 1 China goods stores store Purcotton Purcotton Franchised Northwest Consumer Franchised franchised 2026 294.10 60.60 Retail by 2 China goods stores store Purcotton Total 3,441.10 1,364.53 11 production Consumer Sanitary '0,000 capacity. 64,876 42,863 66.07% 72,986 72,695 99.60% -33.53% goods napkins pieces During the current period, production was scheduled under normal operating conditions, resulting in a corresponding reduction in effective production Is there overseas capacity? ?Yes √No 2. Sales Model and Channels Sales channels and actual operation of products The Company's textile and apparel-related business falls within the consumer goods industry, with online sales and physical stores serving as its main sales channels. Unit: RMB the e-commerce changes platform Depreciation and Without significant 112,477,625.82 121,179,518.36 -7.18% amortization changes Advertising and Without significant promotion 558,441,510.83 501,245,493.81 11.41% changes expenses Lease and property Without significant 78,009,852.01 68,438,212.02 13.99% management changes expenses Without significant Others 32,658,016.59 44,215,140.42 -26.14% changes Total 1,319,852,862.34 1,254,903,652.81 5.18% Without significant 4. Franchise and Distribution Franchisees and distributors achieved a sales revenue as a percentage over 30% ?Yes √No Top five franchisees Total sales Serial Date of start for Is it a related Franchisee name amount Franchisee’s level number cooperation party (RMB) 1 Ranking first 09 November 2020 No 9,326,343.15 the first level 2 Ranking second 28 December 2022 No 6,714,354.79 the first level 3 Ranking third 16 June 2023 No 5,602,804.88 the first level 4 Ranking fourth 24 December 2020 No 5,357,151.93 the first level Unit: RMB Transaction amount during the Platform name Return rate Reporting Period Taobao/Tmall ecosystem 823,462,832.62 3.67% (consumer goods) Opening or closing of online sales channels by the Company 6. Outsourced Operation Model Does it involve an outsourced operation model? ?Yes √No 7. Inventory Inventory 6. Outsourced Operation Model Does it involve an outsourced operation model? ?Yes √No 7. Inventory Inventory Raw materials and materials consigned for 457,380,483 46,957,399 that the franchisees are responsible for the construction and daily operation of the stores, while Purcotton provides goods, training, and supply chain support. Revenues generated from franchised stores sales are shared between Purcotton and the franchisees. Purcotton retains ownership of inventory held in franchised stores. As of 30 June 2026, the inventory balance was RMB45.58 mil lion, averaging RMB380,000 per store. 8. Brand Building Does the Company engage in the production and sale of branded garments, apparel, and home textile products? √Yes ?No Proprietary brand Proprietary brand Made of 100% high- quality natural cotton without Second-tier, fluorescent RMB5-30/pack thirdtier and Purcotton Purcotton Cotton tissues whitening agent; All age groups (100 Nationwide above cities mild and non- pieces) nationwide irritating; meeting the daily needs of consumers 100% cotton surface Age- Second-tier, Nice layer (surface layer, appropriate thirdtier and Purcotton Sanitary napkins RMB1.5-4.99/pad Nationwide Princess spacer, sanitary female above cities wing surface layer) population nationwide 40/pair Children's Second-tier, bedding: thirdtier and 100% cotton RMB268- above cities material; high- 1,698/set; nationwide Expecting quality cotton Toddler bedding: mothers, without fluorescent RMB198- Bedding, bath newborns, Purcotton Purcotton nor formaldehyde; 1,098/set; Adult Nationwide products babies, infants, soft to the touch; the bedding: toddlers and unique gauze fabrics RMB268- adults to provide more 3,198/set; Bath comfortable care products: RMB38- 398/piece Partner brands Partner brands Licensed brand Price Main Target Main Is it an Brand Trademark range of City Authorizing Authorization product Characteristics customer sales exclusive name name main tier party period type group area authorization? products Marketing and operation of each brand during the Reporting Period V. Non-Core Business Activities √Applicable ?N/A Unit: RMB V. Non-Core Business Activities √Applicable ?N/A Unit: RMB Primarily due to matured Associate income is Investment returns on wealth management 9,965,393.41 1.50% sustainable; others income products and recognised gains are not from associates Gains and losses Primarily due to changes in fair from changes in 31,032,052.63 4.69% value of wealth management No fair value products Primarily due to provision for Asset impairment -37,175,924.45 -5.61% No VI. Analysis of Assets and Liabilities 1. Significant Changes in Asset Composition Unit: RMB VI. Analysis of Assets and Liabilities 1. Significant Changes in Asset Composition Unit: RMB Explanation of Change in Proportion Proportion significant percentage Amount changes of Amount changes of changes total assets total assets Without Currency fund 1,795,389,119.40 9.46% 1,593,989,319.92 8.66% 0.80% significant changes 175,162,613.43 0.92% 169,914,491.43 0.92% 0.00% significant liabilities changes Primarily due to an increase Long-term in borrowings 158,330,000.00 0.83% 50,000,000.00 0.27% 0.56% borrowings from banks during the period Without Lease liabilities 376,062,536.06 1.98% 416,875,073.97 2.27% -0.29% significant changes Primarily due Notes to fewer bank 14,710,897.33 0.08% 39,357,178.51 0.21% -0.13% receivable acceptance bills received during Primarily due to an increase Advances to 317,089,623.75 1.67% 179,318,742.70 0.97% 0.70% in prepayments Suppliers for cotton and other goods Primarily due Non-current to an increase assets due 673,052,787.67 3.55% 432,793,859.90 2.35% 1.20% in certificates within a year of deposit due within one year Primarily due to a decrease in Other non- certificates of 1,215,146,750.80 6.40% 1,657,761,021.19 9.01% -2.61% current assets deposit with maturities over assets) 5. Other non- current 99,881,071.54 -1,008,649.77 98,872,421.77 financial assets Subtotal of financial 2,925,259,767.10 31,032,052.63 2,289,160,712.24 1,886,000,000.00 -1,090,051.12 3,358,362,480.85 assets Total of the 2,925,259,767.10 31,032,052.63 2,289,160,712.24 1,886,000,000.00 -1,090,051.12 3,358,362,480.85 above Other changes Semi-Annual Report assets during the Reporting Period? ?Yes √No 4. Restrictions on Asset Rights as of the End of the Reporting Period For details, please refer to Section VIII Financial Report – VII. Notes to the Consolidated Financial Statements – 31. Assets with restricted ownership or use rights. VII. Investment Analysis 1. Overall Situation √Applicable ?N/A VII. Investment Analysis 1. Overall Situation √Applicable ?N/A 2,401,118,346.41 456,139,517.21 426.40% Note Note: Primarily due to an increase in the purchase of wealth management products during the period. 2. Significant Equity Investments Acquired during the Reporting Period ?Applicable √N/A 3. Significant Non-Equity Investments in Progress during the Reporting Period Total 2,906,758,973.68 31,032,052.63 2,289,160,712.24 1,886,000,000.00 17,053,263.88 -1,090,051.12 3,358,362,480.85 -- 5. The Use of Proceeds ?Applicable √N/A The Company had no use of raised funds during the Reporting Period. 6. Entrusted Wealth Management and Derivative Investments （未完）  |