#1WEGO感高 CONSCIENCE | INTEGRITY | LOYALTY The Leading Total Solutions Provider in the PRC Medical Devices Sector Investor Presentation 2020 Interim Results August 2020#2Our Results Revenue growth: For the 6 months ended 30 June 2020, we continued to record revenue growth despite the impact of COVID-19, with revenues increasing 3.0% y-o-y to RMB5,091m. . Our pharma packaging and orthopedics segments in particular recorded strong results, growing 22.1% and 21.8% respectively to reach RMB764.5m and RMB830.6m in sales in 1H2020. While sales from our Clinical Care segment in 1H2020 declined y-o-y due to COVID-19, we believe that the impact is only temporary as COVID-19 continues to stabilize, and that our diversified product mix and our scale will enable us to resume growth and further our market leadership going forward. Our gross profit margins declined from 63.4% to 57.8% as a result of product mix changes due to COVID- 19. Argon's results affected by COVID-19, but we remain positive on its outlook: Argon's performance in 1H2020 was affected as a result of the continued spread of COVID-19 across the world throughout the second quarter of 2020. In 1H2020, Argon recorded total sales RMB678.3m, representing a 3.8% decrease y-o-y. While sales declined slightly when compared to 1H2019, Argon's net profit continued to record consistent growth. Despite the short-term impact of COVID-19, we expect China to continue to be a major growth driver for Argon in the coming years. Continued increase in profitability: Our net income attributable to owners of the Company grew 3.5% in 1H2020, largely in line with revenue growth. . Despite the impact of the pandemic, we intend to continue fulfilling our commitment to provide consistent returns to our shareholders. For 1H2020, we have announced a total dividend of 6.2 cents, representing a 5.1% increase to 1H2019. WEGO威高 1#3Impact of COVID-19 Our work with COVID-19 Our strategy to combat COVID-19 (山店或權失投武汉,十分夺秒运送物资 WEGO威高 威高集团于部职工 为新冠味味喻防控工作 捐款1000821万元 000 BT TE mm WOO Since the outbreak of COVID-19 as early as December 2019, the pandemic has caused an unprecedented impact to both global health and the global economy. To pledge our support to the frontline workers, the Weigao Group, including our employees, have collectively donated RMB50 million in medical products and funds throughout our fight against COVID-19: On January 28, Weigao was among the first batch of companies to donate medical supplies to Huoshenshan Hospital. In total, Weigao donated more than RMB3 million of supplies to Huoshenshan Hospital, and continued to organize the company-wide donation of various supplies' to the country's efforts against COVID-19; By the end of February, Weigao's staff collectively donated a total of RMB20.4 million to our country's efforts against COVID-19; By mid-March, we had donated surgical gowns, isolation gowns, protective suits, masks, disinfectants, infusion equipment, blood collection devices, blood transfusion sets, IV catheters, medical equipment and other medical supplies worth more than RMB30 million. WEGO威高 Despite the extended impact of COVID-19, our diversification strategy, in terms of both product mix and geographic markets, has shown strong results in mitigating risk throughout 1H2020. Safeguarding the health of our employees and to our customers continues to be a crucial goal for us. While the pandemic has largely stabilized in China, we will continue to ensure we have the right protocols in place to protect the health of our workers and ensure that our product supply to our customers remain uninterrupted in the event of a resurgence. As the COVID-19 situation continues to stabilize, we intend to continue our stated strategy of product upgrades, import substitution, investments in technology and resource sharing to ensure that our business continues to grow in the coming years. Our management believes that through our diversified businesses and high quality products, we are able to continue consolidating our market leading position in China. At the same time, we will continue to promote opportunities to achieve synergies across our global platform, with a view to support our corporate growth both domestically and abroad. 2#4Table of Contents 01 1H2020 Financial Results 02 80 03 Operational Highlights Strategic Outlook WEGO威高 3#5WEGO威高 Section 1 1H2020 Financial Results#6Results Summary 4,943 1H2019 Revenue Y-o-y growth: 3.0% Gross profit 5,091 3,136 1H2020 1H2019 Y-o-y growth: (6.2%) Net profit attributable to owners of the Company 2,942 937 1H2020 1H2019 Y-o-y growth: 3.5% 970 1H2020 RMBM 1H2019 1H2020 Growth (%) RMBm 1H2019 1H2020 Growth (%) RMBm 1H2019 1H2020 Growth (%) Revenue 4,943 5,091 3.0% Gross profit 3,136 Margin (%) 63.4% 2,942 57.8% (6.2%) Net profit 937 (5.6pts) Margin (%) 19.0% 970 19.1% 3.5% +1.0ppt WEGO感高 5#7Key Financial Figures Revenue (RMB million) Gross profit¹ (RMB million) Margin % 2017-2019 CAGR: 28.3% Y-o-y growth: 3.0% 63.5% 62.2% 62.8% 63.4% 57.8% 10,364 8,809 6,293 Y-o-y growth: (6.2%) 6,505 5,475 4,943 5,091 3,993 3,136 2,942 2017-2019 CAGR: 27.6% 2017 2018 2019 1H2019 1H2020 EBITDA¹ (RMB million) 2017 2018 2019 1H2019 1H2020 Net profit attributable to owners of the Company 1,2 (RMB million) Margin % Margin % 30.1% 31.5% 31.3% 32.0% 32.3% 21.3% 18.0% 18.6% 19.0% 19.1% 2017-2019 CAGR: 30.9% Y-o-y growth: 4.3% 2017-2019 CAGR: 19.9% Y-o-y growth: 3.5% 3,247 2,773 1,894 2017 2018 WEGO威高 Notes: 1. 2. 1,923 1,582 1,645 1,587 1,338 937 970 2019 1H2019 1H2020 2017 2018 2019 1H2019 1H2020 Adjusted for extraordinary items in FY2018 including fair value appreciation of Argon's inventory and an one-off transaction expense associated with the acquisition of Argon Adjusted for one-off expenses related to the repayment of Argon's term loans in FY2019 and one-off gains in the disposal of partial interests in Weigao Blood in 2017 6#8Revenue Breakdown By Products Revenue Breakdown 1H2020 1H2019 % of sales ■Clinical Care 36.5% Wound Management 2.6% ■Anesthesia and Surgery 1.3% Medical Testing 1.9% Other Consumables 5.9% ■Orthopaedic Products 16.3% Interventional Products 15.4% Pharma Packaging 15.0% Blood Management 5.0% % of sales ■Clinical Care 42.0% Wound Management 3.3% ■Anesthesia and Surgery 1.3% Medical Testing 1.7% Other Consumables 4.5% Orthopaedic Products 13.8% Interventional Products 16.5% Pharma Packaging 12.7% Blood Management 4.2% Segmental revenues (RMBm) % of revenues 1H2020 1H2019 Medical Device Products 2,459 2,611 % Change (5.8%) 1H2020 1H2019 48.3% 52.8% Clinical Care 1,861 2,077 (10.4%) 36.5% 42.0% Wound Management 133 162 (17.9%) 2.6% 3.3% Anesthesia and Surgery 65 65 0.3% 1.3% 1.3% Medical Testing 99 82 21.3% 1.9% 1.7% Other Consumables 301 225 33.8% 5.9% 4.5% Orthopaedic Products 831 682 21.8% 16.3% 13.8% Interventional Products 783 814 (3.7%) 15.4% 16.5% Pharma Packaging 765 626 22.1% 15.0% 12.7% Blood Management Total WEGO威高 254 210 20.7% 5.0% 5,091 4,943 3.0% 100.0% 4.2% 100.0% 7#9Revenue (RMBm) A Track Record of Sustainable and Steady Growth Turnover and margin evolution since IPO While our gross margins for 1H2020 declined to 57.8% as a result of product mix changes due to the impact of COVID-19, we expect margins to recover as COVID-19 stabilizes. We intend to continue our strategy of R&D and product mix upgrades to further enhance our gross margins going forward. Proportion of high-value added products and gross profit margins 14,000 63.7% 63.5% 62.2% 62.8% 63.4% 59.1% 58.8% 59.4% 12,000 57.3% 57.8% 55.2% 55.3% 60.0% 53.3% 50.1% 10,000 45.7% 50.0% 42.6% 40.0% 41.1% 8,000 39.8% 40.0% 6,000 40.1% 70.0% 30.0% 40.3% 44.2% 40.4% 4,000 47.2% 38.2% 41.7% 20.0% 47.8% 60.2% 54.2% 59.9% 55.7% 2,000 80.6% 76.6% 59.7% 57.3% 55.8% 59.6% 10.0% 61.8% 58.3% 23.4% 55.4% 52.8% 19.4% 52.2% 54.4% 0 68.0% 132.0% 64.8% 35.2% 44.3% 45.8% 45.6% 44.6% 42.7% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H2019 1H2020 Historical Financials Restated without blood purification Consolidation of Argon Gross profit margin WEGO感高 Proportion of high value-added products (gross profit margin > 60%) Proportion of conventional products (gross profit margin < 60%) 8 Gross profit margin (%)#10Geographic Information Geographic breakdown 1H2020 ■ PRC United States ■ EMEA Asia Other % of sales 78.9% 8.6% 6.2% 4.0% 2.3% 1H2019 Segmental revenues (RMBm) ■ PRC ■ United States ■ EMEA ■ Asia ■ Other % of revenues % of sales 81.7% 8.7% 4.1% 3.4% 2.1% 1H2020 1H2019 % Change 1H2020 1H2019 East and Central China North China 2,049 1,959 4.6% 40.3% 39.6% 852 906 (6.0%) 16.7% 18.3% Northeast 334 412 (19.0%) 6.6% 8.3% China South China 353 316 11.6% 6.9% 6.4% Southwest 329 339 (3.1%) 6.5% 6.9% Northwest 100 109 (7.7%) 2.0% 2.2% China Subtotal 4,017 4,041 (0.6%) 78.9% 81.7% US 436 429 1.6% 8.6% 8.7% EMEA 318 201 58.4% 6.2% 4.1% Overseas Other Asia 203 167 21.6% 4.0% 3.4% Others 117 105 10.7% 2.3% 2.1% Overseas Subtotal 1,074 902 19.0% 21.1% 18.3% Total 5,091 4,943 3.0% 100.0% 100.0% WEGO威高 9#11Other Financial Figures Other financial figures 1H2020 1H2019 Inventory turnover (days) 1 111 days Working capital Accounts receivable (days)1 137 days Accounts payable (days)1 69 days 114 days 133 days 67 days Debt/ LTM EBITDA (x) 1.3x 1.8x Net debt/ LTM EBITDA (x) Net cash 0.6x Leverage Interest coverage ratio (x) 10.8x 15.5× Gearing ratio² (%) 25.3% 36.0% Current ratio Ratio and returns analysis Return on equity (ROE) Return on assets (ROA) Dividend Interim dividend (RMB/share) Notes: WEGO威高 1. Represents average working capital days 2. Gearing ratio is calculated as total debt as a percentage of total capital 3.2x 2.8x 11.4% 11.8% 7.3% 7.2% 6.2 cents 5.9 cents 10 10#12WEGO威高 Section 2 Operational Highlights#13Overview of Argon's Performance A ARGON MEDICAL DEVICES As Weigao's core overseas platform, Argon has been an important part of Weigao's growth since the acquisition, aiding Weigao in diversifying in both geography and product mix. Continued initiatives across Weigao and Argon are currently underway; we believe the collaboration between Weigao and Argon will continue to be a key growth catalyst for both companies in the coming years. Financial Performance Argon China Future Strategy • . . In 1H2020, Argon recorded total sales RMB678.3m, representing a 3.8% decrease y-o-y. While sales declined slightly when compared to 1H2019, Argon's net profit continued to record consistent growth. China has been pinpointed as one of Argon's key growth regions going forward; Argon aims to create synergies with Weigao's vast network and local expertise to rapidly grow its presence in China in the coming years. In 1H2020, Argon continued to make strides in establishing its sales & distribution network, laying the foundations for future rapid growth. • To capitalize on the vast market potential of China in order to further expand Argon's global coverage and scale. To continue develop innovative products and supplement its existing product portfolio. WEGO威高 12#14Nationwide Sales Network Distribution Network in China We have established an extensive sales network comprising of 36 sales offices, 37 customer service centers and 2,597 sales representatives across 231 cities in China Xinjiang Tibet WEGO威高 Qinghai Number of customers in China (as of 30 June 2020) Heilongjiang Newly added 1H2020 Total Jilin Inner Mongolia Hospitals 16 2,626 Liaoning Beijing Blood Stations 414 Tianjin Hebei Other Medical Units 19 729 Ningxia Shanxi Shandong Distributors 13 1,917 Gansu Henan Jiangsu Shaanxi Total 48 5,686 Anhui Shanghai Hubei Sichuan Zhejiang Chongqing Jiangxi Hunan Number of customers overseas (as of 30 June 2020) Guizhou Fujian Yunnan Guangdong Taiwan Guangxi Newly added in 1H2010 Hospitals Hainan Other Medical Units Distributors Headquarter 36 sales offices 2,597 sales representatives in 231 cities Total Total 3,218 16 1,417 14 277 39 4,912 13#15Product Portfolio Product Development With product registration certificates Number of products as of 30 June 2020 China Overseas 507 553 69 19 Under application for product registration certificates Patented products Under patented application WEGO威高 491 163 112 14 14#16Corporate Structure 0.5% Share Award Scheme 46.4% Weigao Holdings & Management 53.1% Public Float 100% WEGO威高 Weigao (stock code: 1066-HK) Weigao Medical Device 80.5% Weigao Orthopaedic 89.8% Argon Medical (US) 28.1% Weigao Blood Clinical Care • Wound Management • • Blood Management • Pharma Packaging • • Medical Testing • Anaesthesia and Surgery Wego (Spine and Trauma) Star (Joint) Yahua (Spine and Joints) • Bangde (Trauma) • Guidewires & Accessories • OEM in coating Biopsy . Dialyser • Vascular • Dialysis Machines • Drainage • Peritoneum Dialysate • PD-related Devices Dialysis Centers WEGO威高 15#17WEGO威高 Section 3 Strategic Outlook#18Corporate Milestones WEGO顾高 Weigao was founded, with its business focusing on manufacturing disposable medical consumables 1988 2004 Established its orthopaedic business 2005 2007 Entered the hemodialysis industry by introducing dialyser products • NIKKISO Weigao transferred from the GEM to the main board of HKEX Established a JV with Nikkiso to produce hemodialysis devices ARGON MEDICAL DEVICES Announced the acquisition of Argon, a leading intervention device manufacturer in the US BEST MANAGED COMPANIES 民企卓越管理公司 Selected as one of the Best Managed Companies (BMC) in China 2008 2009 2010 2012 2017 2018 2019 2020 Listed on the GEM board of HKEX HKEX 香港交易所 Signed a loan agreement with IFC in relation to a US$20m 8- year term loan Continued expansion of both its orthopaedic and blood purification businesses Partnered with the Chinese Academy of Sciences to establish a platform that fosters innovations Established a strategic partnership with Terumo on devices relating to dialysis solution and PD TERUMO Successfully completed the H- share full circulation pilot program and became a constituent of the Hang Seng Hong Kong Stock Connect Index Entered into a Subscription and Loan Agreement with IFC in relation to a RMB1bn 7- year Green Bond and a RMB500m 5-year loan facility. Following the agreement, Weigao became the first healthcare company in China to issue a green bond WEGO威高 17#19Management Vision Market Positioning To continue maintaining our position as the pre-eminent player in the Chinese medical devices industry with a view to grow into one of the world's leading medtech players To continue to be the solutions provider and innovator of choice for customers within our 4 core segments (consumables, orthopaedics, Innovation Strategy Continuous optimization of product mix through product upgrades, innovation and import substitution Continuous upgrades in manufacturing facilities, automation and engineering technologies to ensure we produce the best-in-class products for our customers Keeping our pulse on the latest cutting-edge technology worldwide through our global R&D hubs Product Vision Focusing on developing products within our 8+4 strategy, (8 product lines +4 core business segments), where market size is large and untapped potential remains immense Continuous evolution to produce higher- technology products year over year, where margins are more robust and barriers to entry are high Maintaining our pristine operational interventional products and pharma packaging) $ Development strategy safety record and continuing to be our customer's most trusted solutions provider As the nation's leading medtech company since our founding in 1988, Weigao strives to continue to be the most trusted leading solutions provider in the PRC medical devices industry WEGO威高 18#20Growth Initiatives Growth Strategies In addition to natural growth from the expansion of the Chinese medical industry, Weigao has plans to further accelerate its growth through a variety of initiatives ranging from product upgrades and diversification to opportunistic acquisitions Opportunistic Acquisitions Replicating the success of Argon by opportunistically source acquisitions to broaden our product suite and further increase our scale Direct Sales Channels • Establishing direct sales channels for select product lines in order to provide Weigao with greater pricing power and in turn, higher margins 06 OPPORTUNISTIC ACQUISITIONS PRODUCT UPGRADES & DIVERSIFICATION Product Upgrades and Diversification 01 05 $ DIRECT SALES CHANNELS WEGO 威高 $ IMPORT SUBSTITUTION 02 Product Partnerships 04 • Partnering with key customers to design bespoke products to better suit client needs and ensure continued demand for our products WEGO威高 X PRODUCT PARTNERSHIPS STRATEGIC COLLABORATION 03 Focus future developments on higher technology and higher margin products where barriers to entry are greater Continuing to diversify our product mix to better combat the evolving market and regulatory environment Import Substitution • Tapping into the high-tech markets in which international players have traditionally dominated at lower costs Importing cutting edge technology to meet the growing demands of Chinese patients Strategic Collaboration Establishing JVs to introduce external capital and expertise to foster further innovation with reduced capital commitments 19 19#21Disclaimer This document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of Shandong Weigao Group Medical Polymer Company Limited ("Weigao Group"), nor shall it be construed as calculated to invite any such offer, nor shall it form the basis of, nor can it be relied on in connection with, or act as an inducement to enter into any contract or commitment whatsoever. Forward-Looking Statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Weigao Group, and certain of the plans and objective of the management of Weigao Group. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of Weigao Group to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on assumptions regarding Weigao Group's present and future business strategies and the political and economic environment in which Weigao Group and its subsidiaries will operate in the future. Reliance should not be placed on these forward-looking statements, which reflect the view of Weigao Group's management as of the date of this presentation only. Confidentiality This document is given to you on a confidential basis and must not be passed to, or their contents disclosed to, any other person and no copy shall be taken hereof. WEGO威高 20 20