Reportedly, in December 2009, Winner’s subsidiary Winner Industries (Shenzhen) had established a wholly owned subsidiary, Shenzhen PurCotton Technology, to develop sales channels in the China marketplace and sell its PurCotton branded products.

Winner Medical said that the PurCotton is a non-woven fabric made with 100% natural cotton products. Using PurCotton patented technology, the company develops many healthy, comfortable, safe and environmentally friendly daily care and home living products.

PurCotton enters into a niche market by promoting medical products for daily use. The main distribution channels will be chain stores (PurCotton stores), on-line sales, supermarkets and wholesales to large customers, while promoting the concept of high quality life by using pure cotton products.

Winner Medical said that the PurCotton stores are mainly located in downtown shopping malls and high-end communities with high visibility and foot traffic. Reportedly, on April 15, 2010, Winner Medical entered into an employee agreement with Mr Zihan Wu, who was appointed general manager of Shenzhen PurCotton Technology. Mr Wu has an experience in Internet and media businesses from when he was a partner of Shanghai Angel Venture Capital Management Company.

Winner Medical said that Mr Wu’s strong e-commerce experience will assist the company’s efforts in building PurCotton business-to-consumer online stores in order to better meet consumer’s diversified shopping requirements.