| | | Investor FAQ | | | | Business Profile and Strategy |
| About Company Agent and Contracts |
| What is the company's major business? | | | Winner Medical Group, Inc., (NASDAQ: WWIN) is a leading manufacturer and the largest exporter by volume in the medical dressing industry in China. Headquartered in Shenzhen, the Company has eight wholly-owned operating subsidiaries and four joint ventures with over 5,000 employees. |
| What kind of products and services does the company provide? | | | Winner’s business operations consist of the manufacturing and marketing, researching and developing of medical dressings and medical disposables, as well as natural cotton consumer products, nonwoven fabric made from 100% natural cotton. Its business can be divided as four product categories which are medical care products, wound care products, home care products, as well as PurCotton® products. |
| What are the major export markets for Winner Medical products? | | | Winner manufactures its products in China and sells its medical dressings and medical disposables both in China and abroad, such as Japan, Germany, Italy, the Netherlands, the United Kingdom, Australia, France, South America, Africa, the Middle East and the United States, and sells its PurCotton® finished consumer products mainly in China. |
| Can we find Winner Medical products in China? | | | The demand for disposable medical products in China has grown 14% annually since 1990. To capture the lucrative domestic market potential, Winner has appointed regional distributors to sell “Winner®” brand products, which is medical products in Guangdong, Beijing, Shanghai, Zhejiang, Hunan, Fujian and Guangxi provinces. Winner also sells its Winner® brand products through 7 out of the top 10 chain drugstores in China with outlets of over 21,000 in all major cities. In order to bring medical grade, 100% cotton products into Chinese market, Winner sells it PurCotton® finished consumer products in Guangdong province by its own chain stores and online sales on Taobao.com at http://purcotton.mall.taobao.com/. |
| What is PurCotton®? What are the functions and advantages over the traditional products for PurCotton®? | | | In late 2007, Winner launched PurCotton®, a non-woven fabric made of 100% natural cotton. The PurCotton® non-woven products have the superior characteristics of natural cotton material, but are more natural, safe, strong, durable, healthy, eco-friendly, and of higher quality than woven cotton or synthetic non-woven fabric. More importantly, due to the spunlace non-woven process used to manufacture PurCotton®, the risk of lint residuals, which are dangerous if left in patient's body, is substantially reduced. The Company also patented the spunlace non-woven manufacturing process in China, the U.S., Russia, Singapore, South Africa, Mexico, Nigeria and the Philippines, and the Member States of the European Patent Office. |
| What are the potential markets for PurCotton®? | | | PurCotton® is not only an ideal substitute for gauze and surgical gowns products in the medical dressing market, it is also suitable for consumer markets such as wipes, baby and lady products and other hygiene products. Escalating support for sustainable development and eco-conscious corporate actions creates ample opportunities for 100% cotton products such as PurCotton® in the nonwoven industry, due to the eco-friendly nature of the product line. |
| How many patents does the company own now? And how many is related to PurCotton®? | | | We currently own 50 patents and patent applications worldwide, with 19 patents and patent applications related to PurCotton®. Patents for PurCotton® manufacturing methods have been granted in China, patent number: ZL200510033147.1; in the United States, patent number US7049753 B2; in Russia, patent number 2005118845/12(021367); and in Singapore, patent number: 200503941-7. |
| Who are the major customers of the company? | | | The majority of Winner Medical's business is generated from OEM exports to leading international brand-name companies in the US, Europe and Japan, such as Cardinal (US), Covidien (US), Artsana (Italy), NHS (UK), Smith & Nephew (UK), BSN Medical (Germany), Molnlycke Healthcare (Sweden), and Medeco (Netherlands). These OEM customers employ high quality standards, and Winner is proud to be one of a few companies to receive FDA approval to export sterilized products to the US directly. |
| What are the company's growth drivers and strategies? | | | We consistently execute the following strategies to drive the Company growth:
– Consolidate the product portfolio and customer mix to drive margin growth;
– Deepen penetration into existing OEM customers with new products in developed markets;
– Expand domestic distribution network to capitalize on the robust China market growth potential;
– Develop and market PurCotton® brand name in China’s retail market and build current clientele in developed markets to drive medium- to long-term growth;and
– R&D innovation, with a focus on developing new products meeting sustainability principles
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| What are the competitive strengths of the company? | | | – Scalable business model in strong growth segments
– Intense focus on profitability
– Broad product portfolio with strong product pipelines
– Extensive overseas distribution network
– Top-tier clientele and a strong market leadership position
– Vertically integrated production capacities to meet market demand
– Innovative R&D capabilities to focus on meeting sustainability
– Strong and experienced management team |
| What is the fiscal year-end for the company? | | | Our fiscal year ends September 30. |
| When does the company report its quarterly and annual earnings? | | | The Company reports its quarterly results in February, April and August. The annual results are reported in November or December. The company adheres to all SEC regulations regarding the timing of financial reporting. |
| What kind of accounting policy does the company adopt? | | | The Company presents financial calculated according to US GAAP. |
| What is the financial performance for the company in the last 3 years? | | | For the 3 years ended September 30, 2009, 2008 and 2007, Winner reported net profit of US$9.1million, US$5.1million and US$5.6million respectively. |
| What is the revenue growth for the past 3 years? | | | Winner recorded revenues for the 3 years ended September 30, 2009, 2008 and 2007 in the amount of US$98.4million, US$85.5million and US$70.3million. The compound annual growth rate from 2007 to 2009 is about 10%. |
| What is the cash level of the company? | | | As of September 30, 2009, the reported cash and cash equivalents is US$9.49 million. Our net cash generated through operating activities for by the end of September 31, 2009 is US$14.69 million. |
| What is the net asset value of the company? | | | Our net asset value in fiscal year 2009 was US$ 82.2 million which was equivalent to US $3.67 per share. |
| What is the debt/ gearing level of the company? | | | Our debt to asset ratio as of September 30, 2009 is 18.5% |
| What is the level of account receivables with respect to the company's revenue? | | | Accounts receivable amounted to US$13.1million for the year ended September 30, 2009. The accounts receivable collection period in fiscal year 2009 was 45 days. |
| When was Winner Medical established? | | | Winner Medical was founded in 1991. |
| What is the company's strategy and mission? | | | Our mission is to establish Winner Medical's reputation as the best, the most reliable, and the most respected supplier of medical dressing products. Our mission statement is: Your Health Is Our Concern! |
| What is the company's corporate culture? | | | Our corporate culture is based on values of honesty, practicality, perseverance and innovation; we aim to continually build customer trust and confidence in our company and products and to create value for our employees and shareholders. |
| What are the company's corporate governance policies? | | | We employ the highest ethical standards and we have established solid corporate governance culture and practice. Full text of the Code of Ethics, Corporate Governance Guidance, Board Committee Charters, and etc. can be downloaded at the Corporate Governance section of our website: http://ir.winnermedical.com/phoenix.zhtml?c=184377&p=irol-govhighlights |
| Who are the company's executive directors and independent directors? | | | The Board consists of two executive directors, Mr. Jianquan Li and Mr. Xiuyuan Fang; and the three independent directors are Mr. Larry Goldman, Dr. Horngjon Shieh and Lawrence XiaoXia Pan. Their biographies are available at http://ir.winnermedical.com/phoenix.zhtml?c=184377&p=irol-govboard. |
| Where is the company incorporated and where is the company based in? | | | The Company is incorporated in Nevada US. Our headquarters is based in Shenzhen, and we currently have eight wholly-owned operating subsidiaries and four joint venture companies. Among them, six operating subsidiaries are in Hubei province. |
| What is the company's corporate and shareholding structure? | | | Corporate structure is available at http://www.winnermedical.com/sub/zgsjg.htm.
As of June 30, 2010, around 77% of the shares outstanding is held by the company insiders. Mr. Jianquan Li, Chairman and CEO of Winner Medical, is the largest shareholder of the Company. |
| What is the company's stock symbol? | | | The company's symbol (ticker symbol) is WWIN (NASDAQ). |
| Which stock exchange is the company's stock traded on? | | | Winner Medical Group Inc. stock is traded on NASDAQ Global Market |
| When did the company go public? | | | Winner Medical Group Inc. went public through a reverse merger on December 16, 2005 and moved to NYSE Amex on October 8, 2009. On April 6, 2010, Winner migrated from the New York Stock Exchange AMEX to NASDAQ Global Market, under the same symbol of “WWIN”. |
| How many outstanding shares does the company have? | | | After 1-for-2 reverse stock split effected October 6, 2009, our shares outstanding as of June 30, 2010 are 23,950,740 shares. |
| How many free-trading shares does the company have? | | | The free-trading shares are approximately 23% of the total shares outstanding. |
| What is the company dividend policy? | | | As a growth company, we will invest all available capital to drive the company's growth, which is the best benefit of shareholders. |
| When is the company AGM date? | | | Our next AGM will be in May 2011. |
| Who is the company's legal counsel? | | | Winston & Strawn LLP
11th Floor Gloucester Tower, The Landmark
15 Queen's Road
Central, Hong Kong
D: +852-2292-2108 F: +852-2292-2200
Website: www.winston.com. |
| Who are the company's auditors? | | | BDO Limited, Certified Public Accountants
8th Floor, Wing On Centre 111 Connaught Road, Central, Hong Kong
Phone: +(852) 2541 5041 | www.bdo.com.hk |
| Who is the company's stock transfer agent? | | | Computershare
Dedicated Telephone Number: 781-575-4215
Toll-Free Telephone Number: 888-985-2070
Email: shareholder@computershare.com
Address for Shareholder Correspondence:
By Mail:
Computershare Investor Services
P.O Box 43078
Providence
RI 02940-3078
United States of America
By Overnight Delivery:
Computershare Investor Services
250 Royall Street
Canton
MA 02021
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