Winner Medical Co. Ltd. Class A · SZSE:300888
Winner Medical Co. Ltd. Class A — Investor Presentation (February 2008)
34 slides from Winner Medical Co. Ltd. Class A's investor presentation, Feb 19, 2008
Slide 1: A Leading Medical Dressings Manufacturer and Distributor
A Leading Medical Dressings Manufacturer and Distributor February 2008
Slide 2: Forward-looking statements disclaimer
This presentation contains certain statements that may include "forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,' as amended. All statements, other than, statements of historical fact incl
Slide 3: Company Overview
Company Overview Winner Medical Group is a leading company engaged in the research, development, manufacture and marketing of medical care, wound care, home care and PurCotton products #1 Exporter by Volume of Medical Dressing (Medical and Wound Care) Products from China * Accounts for approximately
Slide 4: Winner Medical Group corporate history
Wener Medes! Grose | Winner Husnggang ‘moved ssheadqusrersto| and Winner Shanghai shenenen cate separ 2001 March 2005 wener | Winer fube| | winnerxena mer | | PurGaion anch Rat ital cd sherahen armen, | | Medal Grup has alee January 1907 2000 in 2002 Santer 2007 4997 1098 1999 2000 2001 2002 2003 20
Slide 5: Executing a Focused Strategy to Drive Growth and Profitability
Executing a Focused Strategy to Drive Growth and Profitability = Consolidate Product Portfolio & Customer Mix to Drive Margin Growth — Migrating to higher margin products and reducing production and offering of non-core and low growth products — Focus on expansion and penetration into leading intern
Slide 6: Global Medical Supply Demand is Rising
Global Medical Supply Demand is Rising Growing Demand in Multiple Market Segments + Industry demand driven by technological Sega ae CCAR AMEE advances and new healthcare industry demands * Favorable market trends: = Aging demographics — Hospitals seeking to reduce costs, fuelling ‘demand for altemat
Slide 7: Export growth is driven by manufacturing shift to lower-cost labor
Export growth is driven by manufacturing shift to lower-cost labor and manufacturing areas China exported $581 million worth of medica dressing (medical and wound care) products in. 2006" — Winner Medical is China's tara commanding approximately 10 uintry's export market share porter in 2002-2006 t
Slide 8: China's Medical Supplies Industry is Growing Rapidly
China’s Medical Supplies Industry is Growing Rapidly Expanding Domestic Market Position + Demand in China for disposable medical products has grown 14% per year since 199 = Market size for medical devices is estimated to be $8 billion® a + 12.13% of Winner Medical sales were oP within China in fisca
Slide 9: Scalable Business Model in Strong Growth Segments
Scalable Business Model in Strong Growth Segments Extensive, Diverse Product Portfolio Provides One-Stop-Shop = Products in four broad categories — Medical care products - operating room products, procedural packs, protective products and gauze — Wound care products - dressing pads, cotton products,
Slide 10: Operating Room Products and Procedural Packs
Operating Room Products and Procedural Packs Protective Products Gauze Dressing wurgical = ‘Include surgical gowns, . jowns, towels and surgical surgical drapes, prot 3 face mask gowns, non-woven caps, band rolls, non-woven spong = Procedural packs inchide bags, face masks, non-woven balls = : polye
Slide 11: Dressing Pads and Retention Products
Dressing Pads and Coie hroaice Retention Products Cotton products include cotton wool sw n wool balls, Dental Care Products, inges, disposabl iraps and disposable suraic ‘trmer winneR MEDICAL
Slide 12: Handkerchiefs, Sweat Pad and Baby Wear
Handkerchiefs ducts are made 100% cotton m and are pi consumer- Cosmetic Products weit 10 damage ‘Sweat Pad Baby Wear Made of 100% eaten material, and printed with trendy and fashionable * Baby wear products use natural high quality fiber to soft, light, thin, qualities i fer WINNER MEDICAL
Slide 13: Revenue Expansion Opportunities — Innovative Product Development — PurCotton
Revenue Expansion Opportunities — Innovative Product Development — PurCotton Market Opportunities for PurCotton, a Substitute for Woven Cotton and Non-Woven Synthetic Fabric = PurCotton products can be utilized in various markets — Medical disposable market: gauze products and surgical gowns — Consu
Slide 14: Revenue Expansion Opportunities — PurCotton
Revenue Expansion Opportunities — Innovative Product Development — PurCotton PurCotton = Patented manufacture method of the 100% cotton non-woven products * Obtained patent in China and Singapore, patent application pending in other 10 countries and regions = New technology will lower production cos
Slide 15: Worldwide Marketing and Distribution of Products
Worldwide Marketing and Distribution of Products Winner Medical Products Sold in More Than 80 Countries and Regions across the World Wimmer winner mepicaL
Slide 16: 16+ years of relationships with leading multinational producers and distributors
16+ years of business relationships with leading multinational medica producers and distributors 75% of revenue is to OEM businesses - leading international brands that employ high quality standards Diversified customer base of 150+ clients, with the top 10 customers accounting for approximately 45%
Slide 17: Dedicated to R&D
dedicated to R&D R&D expenses increased from ~1.5% to ~3.0% of revenue over the past three years 2007 R&D efforts primarily focused on development of PurCotton and self-adhesive bandages Cotton R&D is enhancing the manufacturing process, shortening the production cycle, reduci and improving product
Slide 18: Fully integrated production capabilities
* Fully integrated production capabilities from upstream raw material processing to export of finished products Provides total procurement solutions to customers, including design and R&D support Eight factories in Hubei, Shanghai and Shenzhen of China * Allfacilities in China occupy nearly 920 thou
Slide 19: Strong and Experienced Management Team
Strong and Experienced Management Team Jianquan Li- CEO — Founder of Winner Group and has served as Chairman and CEO since subsidiary compan formation in 199 — Chief Executive Officer, President and Director — Key to developing the strategic vision; oversee he implement = Xiuyuan Fang - cro — Chief
Slide 20: Track Record of Growth with Stable Margins
Track Record of Growth with Stable Margins Q1 2008: Consolidated Net Sales of $19.33 Million, a 21.83% Year-on-Year Increase Revenue by Market Revenue zoos 20080071007 ta isan ‘Eas mevrope mdopan mvorinand south america china other Attaining Stable Margins scrote margin net ergin 20 Wimer winner mep
Slide 21: Investment Highlights
Investment Highlights Solid Revenue Growth with a Strong Focus on Profitability — Consistent robust revenue growth: CAGR 28.1% 2002-2007 — Focus on margin growth to enhance profitability Extensive Overseas Distribution Network and Strong Market Leadership Position — Largest exporter by volume in Chi
Slide 22: Thank You
Weimer WINNER MEDICAL Thank You
Slide 23: Appendix
Weimer WINNER MEDICAL Appendix
Slide 24: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income Net sles Costof ses Gross raft Other operating income, net Seling. general ane administrative Income from operations Interest income Interest expense ‘Share of undistributed earings in an equity investee Inoome before income taxes and minors
Slide 25: Consolidated Balance Sheet — Assets
Consolidated Balance Sheet — Assets December31 September 30 2007 2007 (Unauslted) (Audited) uss uss Current assets: Cash and cash equivalents 3,142,685 6,377,488 Accounts receivable, less allowances for doubtful accaunts of US$41,988 and USS36,232 at December 11,712,048 11,279,810 31, 2007 and Septe
Slide 26: Balance Sheet — Liabilities and Stockholders' Equity
Balance Sheet — Liabilities and Stockholders’ Equity Current liabilities: ‘Short-term bank loans Accounts payable Accrued payroll and employee benef ‘Customer deposits (Other accrued liabiities Amount due to a stockholder Income taxes payable Total current fables Deferred tax liabilities Total liabi
Slide 27: Shareholding structure
Shareholding structure: Mel 30.68% Management & associates 3.80% Strategie Investor 0.24% Others 0.26% 100% contro Winner Group Limited Eight wholly owned subsidiaries, and three joint venture companies. TT T 1 a ge ge v= ge fe Fo gE E ei Yi si 8 8 Si of $2 KEG Be ice bee ee ee si pt gs fe i & ay qe
Slide 28: Marketing and Promotion stage
‘Marketing and Promotion stage includes targeting the market, ‘market segmentation, implementing ‘marketing and promotion strategy, as well as getting quaity certifications and patents issued by third party authorties. _——+ Marketing & sathet MARKETS Promotion For marketing and promotion purposes, c
Slide 29: Major Products with FDA Approval
Major Products with FDA Approval Chase assifiation Name Proprietary Name (brand name) ‘Common or Usual Name +L Sing, Am “Tanguar Bandage -Nor-Serle “Tiangular bandage -Arm sing 2 | Cover, Shoe Operating Reort ‘Surgical Shoe Cover Various ype of Shoe Covers | Shoes, Opertng Roar Surges! Shoes \Vanous
Slide 30: Major Products with FDA Approval (cont'd)
Major Products with FDA Approval (cont’d) # Cha Classification Name Proprietary Name (brand name) ‘Common or Usual Name 18 | Blade. scape! Scalpel Various types of scapes | Depressor Tongue, Nonsuricl Tongue Depressor Various Types of Tongue Depressors | Cotta, ro Coton os Varcus Types of Caton Ros
Slide 31: Description of Patents
Description of Pate Disposable medical compound eye-potecve facemask 2. 05279870.7 (China Uslty Mode Grantee 100% citon gauze wih precve function ‘2 zoos 132820 X (china) sty Mec Grantee Colored 100% coton gauze 2 2000201228228 (Cnn) Usiy ec ramies Wipes box ‘aL 290820000285 (Cnn) ‘Appearance desin
Slide 32: Patents
ot Patent ‘Patent No, / Patent Appcation No, Tye fats eaufactre metned othe 100% cotton non-woven m re eal -2L. 200610022471 (Ch Invention Granted rufasture Method of he Spunlace Non-Woven Gish Wah X- 21 2006100386 Ray Detectable Element Produced Thereby co Invention Granted Spuniaze Non-Woven Clot
Slide 33: Eight factories in Hubei Province, Shenzhen and Huanggang of China
* Eight factories in Hubei Province, Shenzhen and Huanggang of China All facilities in China occupy nearly 920 thousands square meters — Hubei factory >» Major products: gauze swabs Major functions: spinning and making gauze swabs — Shenzhen factory > Major functions: packaging and sterilization A w
Slide 34: Total area of PurCotton manufacturing base
= Total area of PurCotton manufacturing base amounts to approximately 560 thousand square meters in Huanggang, China = Facilities near shipping ports = Three production lines commenced operation in 2007, with annual capacity of approximately $25 million at estimated current prices = Positioned to ad
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