晨光股份：上海晨光文具股份有限公司2024年年度報告（英文版）.PDF

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1、Annual Report 2024 1/228 Stock Code:603899 Short Name:M&G Corporation SHANGHAI M&G STATIONERY INC.Annual Report 2024 Annual Report 2024 2/228 Adhering to Long-termism and Basing on Facts Letter to Shareholders 2024 was a year of challenges and progress for M&G.Amid increasing global and domestic eco

2、nomic uncertainties,rapid market fluctuations,accelerated industry transformations,weaker-than-expected consumer demand,and intensifying competition,we remained committed to long-termism and steadily advanced our new five-year strategy.With consistent strategies,we effectively navigated the pressure

3、s and challenges imposed by short-term external factors on our operations.Throughout 2024,M&Gs management and employees worked in unity and dedicated themselves to driving development through innovation,even amid challenges.We responded strategically to shifting market dynamics.With a focus on produ

4、ct capability enhancement and omni-channel development,we leveraged intelligent and digital technologies to accelerate our R&D,manufacturing,and service.This has led to improvements in quality,efficiency,and the cultivation of new quality productive forces.We also invigorated lean production and fos

5、tered sustainable development.Efforts to build brand culture and expand into international markets have made significant strides.All above factors provided essential momentum for the Companys long-term,sustainable growth.In 2024,the Company recorded revenue of RMB24,228 million,an increase of 3.76%,

6、and a net profit attributable to its shareholders of RMB1,396 million,a decrease of 8.58%.Excluding share-based payments,the net profit attributable to shareholders was RMB1,446 million,a decrease of 2.81%.The Company maintained a stable and healthy trajectory.We actively laid the groundwork for a d

7、iversified long-term development strategy on our core traditional business.The new businessesdirect office supplies and large retail storescontinued to grow,providing a solid foundation for sustainable future growth.In 2024,with regard to the capital market,we adhered to a scientific,consistent,and

8、steady dividend policy.Taking into account the Companys development stage and long-term capital needs,we enhanced the predictability of our cash dividends and progressively increased our payout ratio to ensure the continuity and stability of shareholder return.With the 2024 profit distribution plan,

9、the Company has distributed over RMB4.4 billion in cash dividends since its listing.In February 2025,the Company Annual Report 2024 3/228 completed its second share repurchase since going public.This boosted market confidence,actively maintained the Companys value,and safeguarded the overall and lon

10、g-term interests of our shareholders.Every persistence makes the progress more stable;every innovation makes the future more promising.Looking ahead to 2025,in an ever-evolving and complex market environment,we will adhere to long-termism and pragmatic approaches,and rise to challenges head-on.We wi

11、ll remain consumer-centric and strive to improve quality and efficiency whilst prioritizing shareholder return.We will push forward in key areas such as technological innovation and transformation,original design,green,intelligent and digital transformation,differentiation,balanced and coordinated d

12、evelopment,brand value enhancement,and global expansion.This will enable the Company to achieve sustainable,high-quality growth and deliver greater value to our shareholders.We will be committed to long-termism in development,branding and capital market operations.By remaining steadfast in this visi

13、on,we believe we can transcend short-term fluctuations and stay competitive in the long run.Common prosperity is our ultimate goal.We would like to express our deepest gratitude to our employees for their hard work and dedication,to our partners for their unwavering support,and to our shareholders f

14、or their continued trust.Together,we further advance our brand with commitment,shape the future using technology,and empower value through culture.Together,we will embrace a future of high-quality development for M&G!Board of Directors of Shanghai M&G Stationery Inc.24 March 2025 Annual Report 2024

15、4/228 Important Notice I.The Board of Directors,Supervisory Committee,directors,supervisors and senior management of the Company warrant that the contents of this report are true,accurate and complete,without any misrepresentation,misleading statements or material omissions,and severally and jointly

16、 bear the legal responsibilities thereof.II.All directors of the Company attended the Board meeting.III.BDO China Shu Lun Pan CPAs(LLP)has issued the audit report with unqualified opinions to the Company.IV.Chen Huwen,the chairman of the Company,Tang Xianbao,CFO of the Company and Zhai Yu,the head o

17、f the accounting department(person in charge of accounting),warrant the truthfulness,accuracy and completeness of the financial report in this annual report.V.Profit distribution plan or plan to convert surplus reserves into share capital approved by the Board of Directors during the Reporting Perio

18、d The Company proposes to distribute cash dividend of RMB10.00(tax inclusive)per 10 shares based on the Companys total share capital(exclusive of shares in the Companys special securities account for repurchased shares)registered as at the registration date for the implementation of dividend distrib

19、ution.The profit distribution plan is subject to being submitted to the Companys 2024 Annual General Meeting of Shareholders for deliberation.VI.Risks statement of the forward-looking statements Applicable Not applicable Forward-looking statements including future plans and development strategies in

20、volved in this annual report do not constitute the Companys substantive commitments to investors.The investors are advised to pay attention to investment risks.VII.Is there any non-operating misappropriation of funds of the Company by any controlling shareholders and their related parties No VIII.Ha

21、s the Company provided any external guarantees in violation of the decision-making procedures No IX.Are there more than half of the directors who cannot warrant the truthfulness,accuracy and completeness of the annual report disclosed by the Company No X.Warning on significant risks The Company has

22、illustrated various risks and corresponding measures that the Company might face in the production and operation.Please refer to the Potential Challenges and Risks set out in Section III Management Discussion and Analysis.Investors are advised to pay attention to risk of investment.Annual Report 202

23、4 5/228 XI.Others Applicable Not applicable 本報告分別以中、英文編制，在對中外文文本的理解上發生歧義時，以中文文本為準。本報告分別以中、英文編制，在對中外文文本的理解上發生歧義時，以中文文本為準。This English version is converted from the Chinese version.In case of any discrepancy between the Chinese version and the English version,the Chinese version shall prevail.Annual R

24、eport 2024 6/228 Contents Section I Definition.7 Section II Company Profile and Key Financial Indicators.8 Section III Management Discussion and Analysis.12 Section IV Corporate Governance.38 Section V Environmental and Social Responsibility.54 Section VI Major Events.57 Section VII Changes in Share

25、s and Shareholders.69 Section VIII Preferred Shares.76 Section IX Bonds.77 Section X Financial Report.78 References Financial statements signed and sealed by the legal representative,the person in charge of accounting work,and the person in charge of the accounting agency.Original of the auditors re

26、port with the seal of the accounting firm and the signature and seal of the certified public accountant.Originals of all company documents and announcements publicly disclosed on the designated information disclosure media by CSRC during the Reporting Period.Annual Report 2024 7/228 Section I Defini

27、tion I.Definition In this report,unless the content requires otherwise,the following terms shall have the following meanings:Definition of common terms The Report Refers to Annual Report 2024 Company,the Company,M&G Stationery,M&G Corporation Refers to SHANGHAI M&G STATIONERY INC.M&G Group Refers to

28、 M&G Holdings(Group)Co.,Ltd.M&G Colipu Refers to Shanghai M&G Colipu Office Supplies Co.,Ltd.M&G Life（晨光生活館）Refers to M&G Life Enterprise Management Co.,Ltd.（晨光生活館企業管理有限公司）/Large retail store of the Company Colipu Information Technology Refers to Shanghai Colipu Information Technology Co.,Ltd.（上?？屏ζ?/p>

29、信息科技有限公司）M&G Technologies Refers to Shanghai M&G Information Technology Co.,Ltd.（上海晨光信息科技有限公司）Jiekui Investment Refers to Shanghai Jiekui Investment Management Firm(L.P.)Keying Investment Refers to Shanghai Keying Investment Management Office(L.P.)Jiumu Store（九木雜物社）Refers to Jiumu M&G Store Enterpri

30、se Management Co.,Ltd.（九木雜物社企業管理有限公司）/Large retail store of the Company M&G Office Stationery（晨光辦公）Refers to Shanghai M&G Office Stationery Co.,Ltd.Axus Stationery Refers to Axus Stationery(Shanghai)Company Ltd.Beckmann Refers to Back to School Holding AS,a Norwegian subsidiary that is principally e

31、ngaged in schoolbags Qizhihaowan（奇只好玩）Refers to Shanghai Qizhihaowan Culture and Creativity Co.,Ltd.（上海奇只好玩文化創意有限公司）MRO Refers to Maintenance,repair and operation,i.e.industrial consumables required by an industrial enterprise to ensure normal production,except raw materials KA Refers to Key Account

32、,usually referring to large cross-regional retailers with large operating space and dense customer flow,including RT-MART,Walmart,Carrefour,and Hualian Supermarket.Core traditional business Refers to The designing,developing,manufacturing and selling writing instruments,student stationery,office sup

33、plies and other products under M&G brands,and also the e-commerce business M&G Technologies New business Refers to Large retail store business and direct office supplies business Reporting period Refers to Year 2024,from 1 January 2024 to 31 December 2024 Yuan,ten thousand Yuan,hundred million Yuan

34、Refers to RMB,RMB10,000,RMB100 million Annual Report 2024 8/228 Section II Company Profile and Key Financial Indicators I.Company Information Chinese name of the Company 上海晨光文具股份有限公司 Short name of the Company in Chinese 晨光股份 English name of the Company SHANGHAI M&G STATIONERY INC.Abbreviation of Eng

35、lish name of the Company M&G Legal representative of the Company Chen Huwen II.Contact Information Board Secretary Securities Affairs Representative Name Bai Kai Office address No.5,Lane 288,Qianfan Road,Xinqiao Town,Songjiang District,Shanghai Telephone 021-57475621 Fax 021-57475621 E-mail irmg- II

36、I.Introduction to General Information Registered address Building 3,No.3469 Jinqian Road,Fengxian District,Shanghai Historical change of the Companys registered address No Office address No.5,Lane 288,Qianfan Road,Xinqiao Town,Songjiang District,Shanghai Postal code of office address 201612 Website

37、of the Company http:/www.mg- E-mail irmg- IV.Information Disclosure and Place for Obtaining the Report Media for the Companys information disclosure Shanghai Securities News,China Securities Journal,Securities Daily,Securities Times CSRCs designated website for the Companys Annual Report disclosure

38、The Companys Annual Report may be obtained at Board of Directors Office V.Stock Information Stock Information Share class Exchanges on which the stocks are listed Stock short name Stock code Stock short name before change A share Shanghai Stock Exchange M&G Corporation 603899 M&G Stationery VI.Other

39、 Relevant Information Auditor of the Company(domestic)Name BDO China Shu Lun Pan CPAs(LLP)Office address 4F,No.61,Nanjing East Road,Shanghai Name of the signing accountant Chen Luying,Fang Ning Annual Report 2024 9/228 VII.Major Accounting Data and Financial Indicators for the Past Three Years(I)Maj

40、or accounting data Unit:Yuan Currency:RMB Major accounting data 2024 2023 Year-on-year change(%)2022 Revenue 24,228,248,698.65 23,351,304,328.03 3.76 19,996,315,623.32 Net profit attributable to shareholders of the listed companies 1,395,844,392.50 1,526,801,727.16-8.58 1,282,456,788.17 Net profit a

41、ttributable to shareholders of the listed companies,net of non-recurring gains and losses 1,233,936,105.87 1,398,219,856.97-11.75 1,155,560,793.33 Net cash flow generated from operating activities 2,289,340,796.79 2,616,600,617.09-12.51 1,351,783,827.08 End of 2024 End of 2023 Year-on-year change(%)

42、End of 2022 Net assets attributable to shareholders of the listed companies 8,909,859,173.13 7,833,178,803.52 13.75 6,849,334,531.67 Total assets 16,586,785,179.43 15,313,962,312.00 8.31 13,022,593,379.49 (II)Key financial indicators Key financial indicators 2024 2023 Year-on-year change(%)2022 Basi

43、c earnings per share(Yuan/share)1.5162 1.6577-8.54 1.3874 Diluted earnings per share(Yuan/share)1.5162 1.6577-8.54 1.3874 Basic earnings per share,net of non-recurring gains and losses(Yuan/share)1.3404 1.5181-11.71 1.2499 Weighted average ROE(%)16.64 20.97 Decrease by 4.33 percentage points 19.60 W

44、eighted average ROE,net of non-recurring gains and losses(%)14.71 19.20 Decrease by 4.49 percentage points 17.66 Explanation of major accounting data and financial indicators for the past three years by the end of the Reporting Period Applicable Not applicable VIII.Difference in the Accounting Infor

45、mation under the PRC Accounting Standards for Business Enterprise(PRC GAAP)and Overseas Accounting Standards(I)Difference in net profit and net asset attributable to shareholders of the listed company in financial reports disclosed under International Accounting Standards and PRC GAAP Applicable Not

46、 applicable (II)Differences in net profit and net assets attributable to shareholders of the listed company in financial reports disclosed under International Accounting Standards and PRC GAAP Applicable Not applicable Annual Report 2024 10/228(III)Explanation on the differences between PRC GAAP and

47、 Overseas Accounting Standards:Applicable Not applicable IX.Key Financial Data for the Year of 2024 by Quarter Unit:Yuan Currency:RMB 1st Quarter(January-March)2nd Quarter(April-June)3rd Quarter(July-September)4th Quarter(October-December)Revenue 5,485,380,847.38 5,565,915,865.31 6,063,026,603.40 7,

48、113,925,382.56 Net profit attributable to shareholders of the listed companies 379,859,509.37 253,074,893.44 388,686,953.50 374,223,036.19 Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss 327,703,630.82 239,509,777.87 361,145,842.58 305,576,8

49、54.60 Net cash flow generated from operating activities 68,147,079.31 665,780,415.54 686,800,884.49 868,612,417.45 Explanation on difference between information by quarter and information disclosed in periodical reports Applicable Not applicable X.Items and Amounts of Non-recurring Gains or Losses A

50、pplicable Not applicable Unit:Yuan Currency:RMB Items of Non-recurring Gains or Losses Amounts in 2024 Notes(if applicable)Amounts in 2023 Amounts in 2022 Gains or losses on disposal of non-current assets(inclusive of impairment allowance write-offs)-10,284.89 Mainly due to the losses on the disposa

51、l of fixed assets 4,135,364.06-31,622.53 Government subsidies included in profits and losses for the current period,excluding those that are closely related to the Companys normal business operations and given in accordance with defined criteria and in compliance with government policies,and have a

52、continuing impact on the Companys profits or losses 156,328,395.64 Mainly including government subsidies received during the Reporting Period and government subsidies transferred from deferred income 148,088,250.88 137,680,656.90 Gains or losses on fair-value changes in financial assets and liabilit

53、ies held by a non-financial enterprise,as well as on disposal of financial assets and liabilities(exclusive of the effective portion of hedges that is related to the Companys normal business operations)57,959,220.58 Revenue generated from purchase of wealth management products 28,908,931.81 33,850,4

54、21.52 Reversal of provision for impairment of receivables which are individually tested for impairment.1,638,145.92 Mainly due to the provision reversal of bad debts on individual receivables during the Reporting Period 3,232,256.86 2,418,576.03 Gain equal to the amount by which investment costs for

55、 the Company to obtain subsidiaries,associates and joint 7,479.07 Annual Report 2024 11/228 ventures are lower than the Companys enjoyable fair value of identifiable net assets of investees when making investments Other net non-operating income and expenses,other than the above items 12,141,547.09 M

56、ainly due to the liquidated damages received from customers during the Reporting Period-2,669,713.78 4,698,497.40 Minus:Effect of income tax 46,319,092.93 33,479,316.16 33,704,873.59 Effect of minority equity(after tax)19,829,644.78 19,633,903.48 18,023,139.96 Total 161,908,286.63 128,581,870.19 126

57、,895,994.84 Items unlisted in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No.1:Non-Recurring Profits and Losses are identified as non-recurring profit and loss items and the items are of a significant amount,and non-recurring profit and loss

58、items listed in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No.1:Non-Recurring Profits and Losses are defined as recurring profits and losses Applicable Not applicable XI.Items Measured at Fair Values Applicable Not applicable Unit:Yuan Curre

59、ncy:RMB Items Opening balance Closing balance Changes in the Period Effect on profit for the Period Held-for-trading financial assets 1,402,518,595.12 2,569,112,993.22 1,166,594,398.10 54,361,789.99 Receivables financing 39,533,283.51 28,475,371.64-11,057,911.87 Investments in other equity instrumen

60、ts 9,175,073.42 10,579,958.34 1,404,884.92 Derivative financial liabilities 1,357,106.71 -1,357,106.71 Non-current liabilities due within one year 35,878,223.18 -35,878,223.18 Total 1,488,462,281.94 2,608,168,323.20 1,119,706,041.26 54,361,789.99 XII.Others Applicable Not applicable Annual Report 20

61、24 12/228 Section III Management Discussion and Analysis I.Discussion and Analysis of Operation 2024 was a year of difficulties and challenges,but also a year of striving and forging ahead.The complexity and uncertainty of the external environment have increased,with rapid changes in the market,insu

62、fficient effective demand,and continued changes in consumer preferences,buying habits,and consumption scenarios.In this context,the Company has adhered to long-termism and pragmatic approaches,and remained consumer-and market-oriented.Supported by technological innovation and lean management,the Com

63、pany has improved quality and efficiency to cultivate new quality productive forces.It consolidated the competitive edges of its core traditional business,continued to develop new business,and actively expanded into international markets.Digital tools have been employed to drive organizational upgra

64、des and transformation,further enhancing the Companys overall competitiveness.Although the annual business goals were not fully achieved,the Company has maintained strong confidence in its development,stayed committed to its strategy,and faced challenges head-on.We believe we have the capabilities t

65、o navigate through economic cycles.In the Reporting Period,the Company recorded revenue of RMB24,228 million,an increase of 3.76%,and a net profit attributable to its shareholders of RMB1,396 million,a decrease of 8.58%.Excluding share-based payments,the net profit attributable to shareholders was R

66、MB1,446 million,a decrease of 2.81%.Operation of the Company in 2024 is reported as follows:1.Core traditional business focused on product capability enhancement to meet diversified consumer needs During the Reporting Period,the Company emphasized quality over quantity in product development to incr

67、ease the on-shelf ratio and sales contribution of single products.New products were developed from the perspective of consumers,cultivating high-quality,functional products that are both attractive and easy to use.The product structure was optimized,further expanding the brand lineup and enriching t

68、he product line to increase the on-shelf ratio of must-have products.By combining internal independent cultivation and collaboration with external IPs and leveraging international design resources,the Company has provided consumers with a wider range of purchasing options.Mass market stationery segm

69、ent.The strategy of exploitation of potential,collaboration,and product capability was followed,continuously developing products that meet the essential needs of the general public.The Company has brought customers a full range of stationery products of reliable quality and essential functions,whist

70、 scientifically managing the products across their lifecycle.It has continuously optimized the product structure and maintained competitiveness.Based on the completeness of category structure and positioning,the Company has enhanced product layout and developed product tiers.Through in-depth explora

71、tion and response to consumers evolving expectations and needs,the Company has consistently launched high-quality products that resonate with consumers.Premium stationery segment.The Company has actively optimized the product structure,increased the on-shelf ratio of best-selling products at key off

72、line stationery shops,exerted efforts in the arrangements,promotion,and cultivation of products in all categories in the online market,and focused on developing the best-selling products and delving into leading shops.The development of high-function products continued to innovate,with the CMF innov

73、ative design(a refined selection and combination of color,material,and finish)offering precise emotional value to enhance consumer experience and providing more high-quality product choices.Arts and kids drawing segment.Strong functional products were developed based on consumer preferences and user

74、 experience,promoting the product offering of food-grade,easy-to-clean,and anti-bacterial high-end products.Offline,efforts were made to enhance the on-shelf ratio in key stores;online,platform data was analyzed to explore the potential of channel benchmark roles and promote the refined operations i

75、n segmented categories and store arrangements,continuously improving the arts and kids drawing segment in online channels.Office stationery segment.The Company has strengthened the development and promotion of office products,combining traffic price-quality ratio with differentiated innovation in pr

76、oduct development to stimulate innovation and create distinctive products that enhance competitiveness.The M&G Blackblade Pro Hobby Knife developed by the Company won the 2024 Red Dot Design Award and the Golden Award for Office Supplies at the 2024“Best Stationery of China”Awards.The Company Annual

77、 Report 2024 13/228 continued to expand M&G office stores and model office stores,advance channel transformation and empower services,and enhance the service capabilities in order to meet the demands of professional channels.The Company has actively positioned itself in IP and Animation-,Comics,and

78、Games(“ACGN”)-related products favored by younger consumers,accelerating the cultural transformation of stationery products.By empowering stationery with IP,the products offer both practical value(usability),interest value,and emotional value(fun).“Qizhihaowan”is an independent trendy brand under th

79、e Company,focusing on independent IP incubation,IP operation,joint brand development,and trendy toy derivatives.The brand is aimed at young consumers emotional value and value propositions,actively engaging in the ACGN IP field.By combining independent IP incubation and collaborations with popular d

80、omestic and international IPs,the brand has deeply operated an IP product matrix,developing products such as Goods and Stationery to establish a deeper connection and communication with users.During the Reporting Period,Qizhihaowan experienced rapid growth,collaborating with various well-known domes

81、tic and international IPs to produce and distribute goods and stationery products,which received positive market feedback.2.Core traditional business continued omni-channel,and improved retail service capabilities During the Reporting Period,the Company continued to promote omni-channel development

82、of its core traditional business.Based on changes in consumer demand and habits,the Company continued to optimize retail operation towards a channel structure with a multi-level distribution system as core.This omni-channel and multiple contact point enabled more direct access to customers through n

83、ew offline channels,online channels and direct supply channels.Further the change from a wholesaler toward a brand retail service provider.Develop traditional channels with a focus on improving the quality of single stores and the construction of positions.Efforts have been made to improve the quali

84、ty of single model stores,thus empowering stores to enhance business quality and sales.The Company has further enhanced the construction of category positions based on the categories prioritised by the Company and optimised store displays.The promotion of the best-selling product offering has helped

85、 improve the on-shelf ratio of key categories at stores,achieve channel upgrades,expand business district coverage,and increase market share.Improve the operational efficiency of channels with digital tools.The information-based channels and high data effectiveness have effectively assisted in enhan

86、cing operational efficiency.M&G Alliance APPs role of linking the headquarters to stationery store owners was leveraged to empower store owners through information sharing and private domain live streaming,which enhances store engagement.The JUBAOPEN APP acts as a fundamental operational tool for da

87、ily business checks,providing real-time and accurate sell-through data to empower the real-time promotion decisions on business of stationery shops and enhancing their capability in the right match between right shops and right products.Actively promote direct model.Continued efforts were made to pr

88、omote headquarters direct supply,partner direct supply,office direct supply and premium stationery to create incremental sales.The office direct supply model further empowered business and developed and tapped the potential of offline professional channels.The premium stationery segment focused on c

89、ore customers,and intended to set a benchmark for large stores of premium products,and lead the ways of high-quality stores next to schools.The Company output the product offerings of large stores at retail summits to enhance the cooperative engagement with leading large stores in the industry.Incre

90、ase online channels.The Company vigorously developed online business,with the online direct sales model and distribution model working in synergy to tap into the potential for online growth.Collaboration between product segments and channels has been strengthened,with a focus on the exploitation of

91、product line arrangements and product capability of online categories.The Company has developed platform-specific products,joint creations,and customised products,offering a range of new products to meet the differentiated consumer demands of various platforms.The development of new channel business

92、 has been accelerated,quickly seizing market share.During the Reporting Period,M&G Technologies revenue was RMB1,144 million,an increase of 33%.3.Actively promote overseas markets layout The Company has actively developed overseas markets,deepening its localized layout in international markets by de

93、veloping locally tailored products.The Company has continuously increased Annual Report 2024 14/228 product on-shelf ratio to meet the diversified needs of overseas consumers,strengthening the competitiveness of overseas products.During the Reporting Period,the Company continued to expand into the A

94、frican and Southeast Asian markets,with the mission of providing affordable stationery for local students and carried out product promotion activities.During the Reporting Period,the Company achieved revenue of RMB1,038 million in the overseas market,an increase of 21%.Whilst overseas sales grew rap

95、idly,the Company refined its overseas business models,channel models,team models,and product models,establishing a solid foundation for the continuous development of the Companys overseas market.4.Continue to strengthen brand presence During the Reporting Period,the Company focused on high-end produ

96、cts that are“exquisite and thoughtful”and meet“upgraded consumer needs”,using scenarios such as Jiumu Store and flagship stores as channel matrices,and platforms such as Douyin,Xiaohongshu,and personal media as communication matrices.This approach has driven the brand upgrade,providing quality stati

97、onery for everyone and deepening consumers impressions of an exquisite and high-quality brand.The aim is to make consumers feel the young consumer-centric and distinct M&G.Through more consumer-centric product development and promotion methods,brand marketing content and strategies closer to the use

98、rs inner world,and content formats such as“store visits,”“product recommendations”,and“emotional value,”the Company has empowered products and channels with the brand,carrying out the fusion innovation of national trend and brand.The brand has continuously delivered emotional value,conveying brand w

99、armth in ways favored by younger generations.During the Reporting Period,the Company won the 2024 BrandZ China Inspirational Star of Innovation award,showcasing the power of Chinese stationery brands to the world.5.Consolidate and improve the Companys middle-end and back-end platform capabilities Pr

100、omote design and R&D.Adhering to the consumer-centric philosophy,the Company actively performed forward-looking research and design,focusing on technological innovation and transformation,and original design.It has striven to optimise and improve details,accelerate the speed of technological progres

101、s and results transformation,and continuously inject new content and design possibilities into traditional stationery.Based on category structure and category positioning completeness,the Company has improved its product layout and created product tiered groups,offering consumers high-quality,aesthe

102、tically appealing,and cost-effective products to enhance their usage experience.By collaborating with domestic and international design resources,the Company has continuously improved the capability of international design and facilitated its global landscape.During the Reporting Period,M&Gs smart l

103、arge screen microscope won the 2024 Red Dot Design Award and the Golden Award for Creative Educational Products at the 2024“Best Stationery of China”Awards.M&G Business System(MBS).The Company has comprehensively and deeply promoted the MBS system,integrating it with business operations and further

104、improving the system.Through structural reforms and capability platform building,the Company has established an MBS-driven lean operation system,improving product capability and operational efficiency,whilst reducing costs,increasing efficiency,improving quality,and mitigating risks.The Company has

105、established a lean talent management model and MBS mechanisms,using the MBS for issue addressing and flow improvement among employees,promoting regular improvement activities,and forming a continuous improvement+talent development dual-drive model.Coordinate supply chain.The Company proactively prom

106、oted the application of intelligent manufacturing technologies in the production and testing processes of the stationery industry,as well as the application of machine vision technology in key links,thus significantly improving production and testing efficiency.The quality assurance procedures were

107、optimized,and the development of the supply chain quality system was refined.The core supply chains have received focused attention,empowerment,and optimization,raising their overall quality.Matching with the product capability enhancement strategy,the Company has constructed a product capability ba

108、sed on high quality,optimal cost,fast delivery,and strong innovation.Logistics support.The Company is committed to building a logistics service system that can support multiple business models.It has provided differentiated,refined and efficient logistics service support for each business department

109、 based on their business types and requirements.The Company has reasonably planned the logistics and capacity across the country,achieving the nationwide layout and shipment covering five warehouses across four regions,including East China,South China,North Annual Report 2024 15/228 China,and Centra

110、l China.Utilizing digital tools and launching an intelligent scheduling system,the Company has visualized and digitalized logistics services,providing comprehensive support for the development of various business platforms and significantly enhancing the operation and cost control capabilities of al

111、l warehouses.Digitalization development.The Company has fully advanced digital transformation,focusing on three core goals:business empowerment,efficiency enhancement,and ecosystem collaboration.It has strengthened the construction of its big data platform to capture and deeply analyze data from var

112、ious business,market,and customer sources to provide scientific support for business decisions.By collaborating with departments such as finance,supply chain,sales,business segments,logistics,and human resources,the Company has enhanced the mid-end and back-end platform operations through data-drive

113、n improvements and overall digital management capabilities.This transformation supports product upgrades,service upgrades,industry upgrades,and the exploration of incremental development opportunities.Construction of organization and talent.Talent development is the core driving force for sustainabl

114、e development.The Company has always regarded talent as the first resource and has established a systematic,multi-level talent management framework aligned with its strategic goals.The Company has gradually formed a virtuous cycle mechanism for attracting,developing,utilizing,and retaining talent.It

115、 is committed to building a dynamic organization,fostering a people-oriented and inclusive corporate culture,continuously improving its compensation and benefits system,and inspiring employees potential and innovation abilities.The Company has advanced the Four Transformations(online,experiential,di

116、gital,intelligent)of human resources,providing support for the rapid growth and efficient operation of the enterprise.6.Large retail store business steadily developed Jiumu Store has a clear positioning in the Companys strategy,which is to become the bridgehead for the M&G brand and product upgradin

117、g,and also to become a national leading premium recreation and creativity retail brand.More exposure of the M&G brand can help drive development of M&Gs premium stationery products,strengthen retail capabilities,provide timely consumer insights,and provide feedback for the brands continuous upgradin

118、g and market expansion.During the Reporting Period,the number of offline stores for Jiumu Store continued to expand.The stores made further improvements in product portfolios,refined operations and consumer insights and services,establishing a continuous mechanism for checking people,products,and st

119、ores.The online business also saw growth across multiple channels,including Tmall,Pinduoduo,Douyin,community e-commerce,and instant retail.Through the coordinated development of online and offline channels,the Company has continuously optimized its operational capabilities,enhanced brand influence,a

120、nd further solidified its leading position in the mid-to-high-end cultural and creative retail market for stationery.In terms of membership operations,Jiumu Store focused on its membership base,establishing a complete and efficient membership management system.The membership base has surpassed ten m

121、illion,laying a solid foundation for the long-term development of the brand.In terms of product expansion,investments in and sales of IP-related(ACGN,goods,and related merchandise)products have increased,further enriching the product structure and enhancing the brands market appeal,particularly attr

122、acting more young consumers.The proportion of M&G and other own-branded products has also increased,further raising the competitive threshold.During the Reporting Period,M&G Life(including Jiumu Store)recorded revenue of RMB1,479 million,an increase of 10%,among which Jiumu Stores revenue was RMB1,4

123、06 million,an increase of 13%.As of the end of the Reporting Period,the Company had 779 large retail stores in China,of which 741 were Jiumu Stores and 38 were M&G Life stores.Unit:RMB 0000 M&G Life(including Jiumu Store)2024 2023 2022 3-year average Revenue 147,921.38 133,535.55 88,414.44 123,290.4

124、6 Net profit-1,629.11 2,291.32-3,513.84-950.54 Of which,Jiumu Store 2024 2023 2022 3-year average Revenue 140,645.45 124,043.08 81,299.30 115,329.28 Net profit-1,244.28 2,572.81-3,650.09-773.86 Annual Report 2024 16/228 7.Direct office supplies business experienced steady growth As a pioneer and ind

125、ustry leader in procurement digitalization for enterprises,M&G Colipu has followed requirements on well-informed,open and transparent government procurement,and met requirements that enterprises desire to increase procurement efficiency and reduce procurement costs for non-production office and admi

126、nistration supplies.It has continued to intensify core competitiveness by improving service quality,enriching product categories,further identifying customers,increasing internal proportions and building a nationwide supply chain system.The ultimate goal is to continuously lead the industry.In terms

127、 of business scenarios,M&G Colipu has focused on four business segments,including one-stop office supplies procurement,MRO industrial products,marketing gifts,and employee benefits.It has placed particular emphasis on expanding the supply chain for marketing gifts and MRO industrial products.In term

128、s of customer development,M&G Colipu has not only continuously cultivated existing clients but has also expanded its client base.In the state-owned enterprise(“SOE”)sector,it has successfully extended its business into areas such as military,power,and energy,including winning new projects from China

129、 National Petroleum Corporation,Sinochem,and China Electronics Corporation.In the government sector,it has continued its in-depth cooperation with projects of China Military Online and the Central Government Procurement Centre.In the financial sector,new projects were successfully secured with Huaxi

130、a Bank,Taikang Insurance,and Sunshine Insurance,further expanding its advantage in this field.In MRO industrial products,M&G Colipu has maintained its professional spirit of“digging 10,000 meters deep from a 1-meter-wide opening”,continuing to tap the potential of existing partners and extend new bu

131、siness in several projects with State Power Investment Corporation,China Three Gorges Corporation,China Nonferrous Metal Mining,and China Electric Equipment Group.Middle-end and back-end platforms.By developing an innovative digital platform system to continuously improve platform operation and mana

132、gement capabilities,M&G Colipu has actively stepped up digital construction,empowered the centralized procurement of governments and enterprises with digital capability,and realized cost reduction and efficiency improvement.By piloting electronic invoices with corporate customers and upgrading the f

133、ive major self-developed engines,M&G Colipu assisted customers digital transformation with its own digital capability.M&G Colipu has also continuously optimized warehouse layout and efficiency nationwide,making innovations in the data-driven and intelligent warehouse construction process.Employee in

134、centives.During the Reporting Period,in order to expand operational scale,improve economic benefits,and enhance market competitiveness,as well as to build a long-term incentive mechanism for future development and governance,and fully motivate management and core employees,M&G Colipu implemented a c

135、apital increase.This included both employee equity incentives and a capital increase by the beneficial controller.During the Reporting Period,the related share-based payments for the employee stock incentives of M&G Colipu were recorded as part of the administrative expenses,totaling RMB75.56 millio

136、n.During the Reporting Period,challenging as the environment was,M&G Colipu maintained its strategic focus and its operating performance continued to improve steadily.It recorded revenue of RMB13,831 million,an increase of 4%.Unit:RMB 0000 M&G Colipu 2024 2023 2022 3-year average Revenue 1,383,143.5

137、7 1,330,699.41 1,092,965.31 1,268,936.09 Net profit 32,178.31 40,120.65 37,156.87 36,485.28 8.M&A progress During the Reporting Period,Axus Stationery continued to optimize its operations.It actively pursued export sales,focusing on the incremental exploration of key clients and the acquisition of n

138、ew clients.Growth was achieved by acquiring new clients and recommending new products.Domestically,efforts were made to improve both offline and online business,with reasonable configuration of the production capacity and resources of its production bases.Axus Stationery has also carried out lean fa

139、ctory management,achieving stable production and enhanced efficiency.Digital tools were utilized to optimize the coordination between supply chain production and sales,reducing procurement costs and improving operational efficiency.During the Reporting Period,Beckmanns business developed steadily,se

140、eing revenue of approximately RMB158 million.The European market operated smoothly,and Beckmann also entered Annual Report 2024 17/228 the US market.Domestically,online sales were conducted through official flagship stores on platforms such as Tmall,JD.com,and Douyin,whilst an offline presence was e

141、stablished in stores such as Jiumu Store and M&G Life,enjoying popularity among domestic consumers.9.Enhance quality and efficiency and strengthen shareholder return Active share repurchases demonstrate confidence in the Companys development.Due to confidence in its future development and corporate

142、value,the Company launched a share repurchase plan during the Reporting Period to protect the interests of the Company and its shareholders,and improve the Companys long-term incentive mechanism.The repurchased shares would be used as equity incentives or in employee stock ownership plans.From Augus

143、t 2024 to February 2025,the Company repurchased,through the stock exchange,a total of 5.18 million shares with RMB150 million.Increase the dividend payout ratio to safeguard the interests of shareholders.The Company attaches great importance to investor return,safeguards shareholders rights and inte

144、rests and adopts a consistent dividend policy.It brings investors long-lasting and stable return on investment through cash dividends and other profit distribution ways,and shares with shareholders the operating results of the Company.It has increased the cash dividend payout ratio for three consecu

145、tive years.The Companys cash dividend per share for 2024 is expected to be RMB1.0(to be deliberated by the general meeting of shareholders),and cash dividends are expected to account for 65.61%of the net profit attributable to the parent company.Since the Company went public,the cumulative dividends

146、 and share repurchases(including the profit distribution plan for 2024)have exceeded RMB4.7 billion.10.Sustainable development During the Reporting Period,the Company continued to advance sustainable development centering on its four major strategic pillars,and its MSCI ESG rating was upgraded to“A”

147、.In terms of sustainable products,the Company adopted sustainable raw materials such as recycled plastics and biodegradable materials to reduce its environmental impact.In response to climate change,the Company advanced digital energy management,air compressor upgrades,and other energy-saving projec

148、ts,whilst continuing to expand the use of renewable energy.In terms of sustainable supply chain,the Company optimized the ESG assessment standards for suppliers and launched carbon data collection for the supply chain.As for employee and community empowering,the Company engaged internal and external

149、 stakeholders,including senior executives,employees,and channel partners,in public welfare donations and volunteer services,continually broadening the participation and influence of its public welfare projects.For its outstanding performance in ESG,the Company was included on the 2024 Fortune China

150、ESG Impact List.During the Reporting Period,the Company was selected as a 2024 National Green Factory,demonstrating its leadership in green production and energy-saving emissions reduction.II.Industry Situation of the Company during the Reporting Period 1.Industry situation of the Company According

151、to Industrial Classification and Codes for National Economic Activities(GB/T 4754-2017)issued by the National Bureau of Statistics,the Company is classified to stationery,arts,sports and entertainment products industry in the manufacturing sector.The Company is a member of China Stationery&Sporting

152、Goods Association,and China Writing Instrument Association.During the Reporting Period,revenue of the stationery and office supplies manufacturing industry decreased by 1.6%,mainly due to product homogeneity,fierce price competition and slowing market demand(data source:China Stationery&Sporting Goo

153、ds Association).According to data from the relevant e-commerce platform,stationery sales on Taobao declined 1%in 2024.China encourages art education and quality education for students,deepens the integration of sports and education,and promotes the healthy development of teenagers,which brings about

154、 new development opportunities for painting and calligraphy supplies,educational books,cultural and creative student supplies,digital and intelligent stationery,and teenagers sports equipment suitable for physical exercise on campus.The market of the direct office supplies has been growing very fast

155、 in China.According to the China Public Procurement Development Report(2023)compiled and released by China Federation of Logistics&Purchasing,the scale of public procurement transactions in China in 2023 exceeded RMB46 trillion.With the accelerated development of Chinas unified public resource tradi

156、ng platform,the concentration of transactions,regulatory oversight,and data centralization in the public resource trading Annual Report 2024 18/228 market have been steadily increasing.In the context of the digital economy,digitalization,e-commerce,and centralized procurement have become the main fo

157、rms of public resource trading from central to local governments.This process,initially starting with transparent procurement by government agencies,central state-owned enterprises(“SOEs”),and financial institutions,is now expanding to large enterprises and local SOEs.2.Industry features(1)Periodici

158、ty Writing instruments,student stationery and office supplies are less affected by economic fluctuations.With low unit price,writing instruments and student stationery are more of necessity goods with relatively low income elasticity,relatively less sensitive to economic fluctuations.(2)Seasonality

159、There is seasonality in the demand for student stationery.Months before a new semester(summer and winter vacation)is what the stationery industry calls schooling peak season,during which sales of student stationery usually peaks.Students and their parents will buy a lot of stationery in advance and

160、stationery manufacturers promote their products.There is less seasonality in the demand for student stationery.However,the demand for office stationery in the second half of the year might be slightly higher than that in the first half,as some companies bought stationery at the end of the year.3.Dev

161、elopment trend of the industry With the changes in the way of life and consumption habit of consumers,Chinas retail industry entered a new stage of redevelopment and innovation.Stationery industry faces challenges with uncertainty of external environment,diversification of retail channels,and more i

162、ndividualized demands from main customers group(now being the post-00s and post-10s).With the changing demographics of China in particular the decreasing birth rate,stationery industry revenue growth comes less from by unit volume growth,and more from consumption upgrade and product upgrade.Domestic

163、 market demand for mid-to high-end stationery products keeps increasing.This provides opportunities for mid-to high-end stationery products with better quality and higher price.Chinas population of 1.4 billion accounts for about 18%of global population,while leading stationery companies in China can

164、 continue to mostly rely on the huge domestic market,they also have room for international expansion in international markets,which could reinforce each other under favorable conditions.The global influence of Chinese culture continues to rise.Not only do domestic consumers seek emotional resonance

165、by purchasing Chinese trend products,but overseas consumers are also beginning to embrace Chinese elements,showing a positive outlook on Chinese goods.Leading enterprises focused on building omni-channel operation capabilities and implemented refined management.With the popularity of the Internet,sm

166、art phones,and online transactions,peoples consumption habits and consumption scenarios have changed.Consumers access to information is becoming more fragmented,and new-generation marketing means are becoming more diversified,including online media platforms(such as Weibo,WeChat,Xiaohongshu,and Douy

167、in)and IP topic creation,which further tests enterprises ability to make quick response to industry trends.Compared with small-and medium-sized enterprises,leading enterprises boast stronger and richer whole network marketing and operation capabilities.They formulate refined marketing strategies by

168、city to reach consumers.In addition to online traffic,offline channels are also required to realize refined management by empowering channels through organizational reform and information system.According to the National Bureau of Statistics,online retail sales across the country recorded RMB15.5 tr

169、illion in 2024,an increase of 7.2%.Outstanding companies in the consumer industry seized the development opportunities of online consumption and achieved continuous sales growth through online and offline integration.The new generation of young people has become a major force in driving new consumpt

170、ion.The consumption concepts of the youth group are changing,shifting from a focus on the practicality of goods to an increasing emphasis on the emotional value of consumption.They are more eager to achieve emotional resonance and psychological satisfaction through their purchases.This pursuit of em

171、otional value is driving youth consumption towards personalization and experience-based consumption,whilst also encouraging businesses to integrate emotional elements into product design and other processes.ACGN and cultural and creative merchandise have already broken through traditional boundaries

172、,Annual Report 2024 19/228 reflecting youth consumers recognition of excellent cultural works such as animation and comics.This trend reflects a shift in consumption demand from practicality to emotional value.Traditional retail stationery shops nearby school are still the dominant channel for China

173、s stationery industry,and shares of other retail formats are increasing faster.Sales terminals and channels of the industry are becoming more diversified,upgrading and competition in channels becomes more obvious.Domestic consumption for stationery in China becomes more brand conscious,innovative,in

174、dividualized and more premium.There is a growing demand for premium cultural and creative products,stationery products are moving from those primarily focus on functionality towards those with more cultural and creative elements catering to customers.With continued development in the stationery indu

175、stry,there could be higher industry consolidation,and leading companies could gain larger market shares.In the context of the digital economy,thanks to favorable factors such as policy driving,the rapid advancement of centralized procurement by large-and medium-sized enterprises,and the competition

176、among various digital procurement service providers,great progress has been made in the digitalization,e-commerce and centralization of public procurement in China,which have become the main form of public resource transactions from central to local governments.According to the 2024 Digitalized Proc

177、urement Development Report released by the China Federation of Logistics&Purchasing,the total procurement amount for enterprises nationwide reached RMB175 trillion in 2023.Among this,the total amount of digitalized procurement was approximately RMB17 trillion,with a penetration rate increasing to 9.

178、8%.More than 70 central enterprises have established online stores,with a clear trend of product diversification.In addition to office supplies and industrial products,the procurement e-commerce platforms of central enterprises have expanded into the areas of production materials and engineering equ

179、ipment.With the further development and application of information technology,data have become a new production element.Industrial digitization is becoming a major pillar of the digital economy,and traditional industries are actively gaining new development momentum through digital empowerment.The i

180、nvestment in the manufacturing industry has shifted from the investment in equipment and assembly lines to the transformation of digital processes and digital transformation of products,in a bid to apply digital technology to reduce channel costs and management costs and become a digital-driven mode

181、rn enterprise.With smart technology and products upgrade,promotion of national education informatization and the development of the online education market,smart stationery products have developed rapidly in the past few years.Technology-empowered smart pens and smart books are widely adopted in onl

182、ine education,providing an increasingly better user experience.Technology-empowered smart pens and smart books are widely adopted in online education,providing a better user experience.4.Company position in the industry As a leader of own brand+domestic demand in Chinas stationery industry,the Compa

183、ny has a strong first-mover and leading advantage,with a wide and deep distribution network coverage in Chinas stationery market.At the end of the Reporting Period,the Company has a national distribution network covering approximately 70,000 retail stationery shops using the store sign M&G Stationer

184、y across China,enabling the Company to establish market leading position for its own brand products amidst competitions.The Company ranked first in Top Ten Enterprises in Chinas Light Industry and Writing Instrument for 12 consecutive years.M&G Colipu is an iconic company in the field of B2B e-comme

185、rce procurement in China.After 12 years since its start,thanks to its electronic transaction system,intelligent warehousing logistics management system,high-quality supply chain management and customized service,M&G Colipu has become one of the industry leaders of digital enterprise procurement serv

186、ice provider.For many years,M&G Colipu has won many awards such as the Outstanding E-commerce Platform in Chinas Stationery and Office Supplies Industry,the Outstanding Supplier of Government Procurement,and the Most Influential E-commerce Platform in Financial Procurement.III.The Companys Businesse

187、s during the Reporting Period 1.Principal business M&G Stationery is a comprehensive stationery supplier and an office servicer.The Company integrates the value of creativity into its products and service advantages,advocates fashionable Annual Report 2024 20/228 stationery lifestyle,and provides so

188、lutions for study and work.Its core traditional businesses include designing,developing,manufacturing and selling writing instruments,student stationery,office supplies and other products under brands,and also the e-commerce business M&G Technologies;its new businesses mainly comprise of direct offi

189、ce supplies business-M&G Colipu,and large retail store business-Jiumu Store and M&G Life.During the Reporting Period,there were no significant changes in the Companys operation model.2.Principal operation model The Company has an independent and complete operation from design and development of bran

190、ds and products,procurement of raw materials and accessories,product manufacturing,supply chain management and warehouse and logistics,to distribution network management.The Company is capable of performing independent operation of business in the market.For R&D model,the Company has an entire desig

191、n system covering the whole process starting from customer value proposition to product design,product mold to brand image design,incorporating trend-,theme and experience-oriented R&D model to develop new products with a comprehensive categories approach based on consumer insight.For manufacturing

192、model,the Company uses the brand manufacturing model that features sales-driven production,in-house and OEM outsourcing.The Company has an independent system from raw material procurement to manufacturing and selling,and has established its brands in the market.We have the advantages from participat

193、ing in the whole value chain from design,research and developing,manufacturing and selling stationery.For sales model,based on features of stationery products and current situations of stationery consumption at home and abroad,the Company has developed its sales model that relies on regional distrib

194、utors,complemented by direct sales to offices 2B customers,direct-sale store,KA sales,online sales,as well as international distribution.We are the one of leading companies in Chinas stationery business that engage in large-scale brand sales management and franchise management.In addition to operati

195、ons on platforms such as Tmall,JD,and Pinduoduo,M&G Technologies also conducts live streaming on platforms such as Douyin and Kuaishou through its own live streaming room or cooperation with KOLs on the platforms.M&G Technologies is also responsible for online full platform marketing and management

196、of authorized online stores.M&G large retail store businesses include two store types:Jiumu Store and M&G Life.Targeting female consumers aged 15-29,Jiumu Store primarily sells stationery,cultural and recreative products,educational and entertainment products,and daily household and home products.Ji

197、umu Stores are mostly located in high-quality shopping malls in prime urban districts.Jiumu Store represents the Companys ongoing exploration in new retail model in lifestyle products with a distinct cultural element.Jiumu Store started franchising in July 2018,where franchisees pay contract deposit

198、 and decoration fee according to contracts,and store rent,store staff salary,utilities and other costs incurred in franchising stores.M&G Life mainly targets students aged 8-15,primarily selling stationery products.M&G Life stores are mostly located in Xinhua Bookstore and compound bookstores.M&G Li

199、fe represents the Companys efforts to move beyond the dominant traditional channels of retail stationery shops nearby schools.In the direct office supplies business,M&G Colipu provides governments,public institutions,Fortune Global 500 companies and other SMEs with cost-effective one-stop supplies p

200、rocurement service.M&G Colipu has a rich product offering,with application scenarios covering one-stop office supplies,MRO industrial products,marketing gifts,and employee benefits,which include more than one million product categories such as office paper,office stationery,office supplies,office eq

201、uipment,computers and accessories,digital and communications,office appliances,daily necessities,business gifts,food and beverages,office furniture,labor protection supplies,and industrial supplies.By shortening the supply chain,M&G Colipu provides customers with one-stop,cost-effective procurement

202、and customized value-added services.With changing demographics of China in particular the decreasing birth rate,it becomes increasingly difficult to achieve revenue growth from unit volume growth in the future,and stationery industry growth is increasingly driven by consumption upgrade and product u

203、pgrade.The Companys core traditional businesses are challenged with demands from more individualized population born after 2000 and 2010.Stationery consumption in China is becoming more brand conscious,innovative,individualized and more premium.There is a clear growth in demand for better cultural a

204、nd creative products,which accelerates industry transformation towards one with more cultural and creative elements.M&G Technologies reflects channel diversification trend and helps the Companys omni-channel strategy by expansion of online business.Jiumu Store serves as the Companys bridgehead Annua

205、l Report 2024 21/228 to continue products and channels upgrading of its core traditional business,and it plays an important role in promoting the Companys brands and products upgrade.M&G Colipu meets demands for purchasing office supplies from corporations and institutions,which helps boosting the s

206、ales of writing instruments and office stationery of the Companys core traditional business.3.Major driver for revenue growth Driven by market force With the changes in the way of life and consumption habit of consumers,the mix of people,product,and place in retail industry has been reconstructed,sa

207、les channels have become more diversified,and channel upgrades and channel competition have become increasingly fierce.As the domestic market demand for mid-to high-end stationery products keeps increasing,this provides opportunities for mid-to high-end stationery products.Chinas population of 1.4 b

208、illion accounts for about 18%of global population,while leading stationery companies in China can continue to mostly rely on the huge domestic market,they also have room for international expansion in international markets,which could reinforce each other under favorable conditions.Driven by innovat

209、ion Innovation as one of driving forces for continuous development with a focusing on consumers.The Company continued to promote technological innovation,product innovation,channel innovation and business model innovation.Through product innovation and business model innovation,the Company has forme

210、d a pattern of coordinated development,high-quality development and sustainable development of multi-business model.Meanwhile,it actively promoted the high-end,digital,intelligent and green transformation in its business operations,and coordinated the upgrading of traditional businesses,the growth o

211、f emerging businesses and the cultivation of future businesses.Driven by the Companys competitive advantages With professional teams,market insights,unique brand advantages,channel advantages,supply chain advantages,R&D and design advantages,the Company continued to promote technological innovation

212、and product innovation,and maintained a strong forward driving force through high-end,omni-channel,digitalization,lean production and dynamic organization.Driven by policy The continuous investment of the state in education,the three-child policy,the increased childcare subsidies,and a favorable pol

213、icy context for the development of the cultural industry encourage and promote the integrated development of the cultural industry and upstream and downstream industries,invigorate economic transformation and social development,and drive the steady development of the stationery industry.A series of

214、national policies on the centralized procurement industry have been promulgated,rapid progress was made in centralized procurement of large-and medium-sized enterprises,the transparency of procurement information and the competitive mechanism of centralized procurement promoted the concentration of

215、office supplies industry and promoted the vigorous development of direct office supplies industry.Driven by industry integration With continued development in the market,market concentration of stationery industry becomes greater,leaving more room for industry consolidation.Leading companies in the

216、stationery industry with good brand recognition are in a strong position,and more market share is gained by leading companies.Through mergers and acquisitions of high-quality targets at home and abroad,the Company further enhanced its competitiveness and brand power in segmented categories.IV.Analys

217、is on Core Competitiveness during the Reporting Period Applicable Not applicable As one of the largest stationery manufacturers in the world,the Company enjoys unique competitive advantages in terms of brand,channel,supply chain,design,and R&D in its core traditional business.As for the direct offic

218、e supplies business,M&G Colipu leads the way as a supplier for governments and enterprises in the online channel.During the Reporting Period,no significant change occurred to the core competitive edges of the Company,which are summarized as follows:1.Corporate culture and team M&G is a company with

219、a strong sense of mission and social responsibility,with an aim to make study and work more joyful and effective.The Company has been in business for more than 30 years Annual Report 2024 22/228 and has always kept its original aspiration in mind.It has promoted development through innovation and br

220、eakthroughs,and provided consumers with high-quality products and services.It is committed to providing Chinese students with affordable good domestic stationery,and continues to devote itself to various social welfare undertakings,thereby promoting its continuous development.At the same time,the Co

221、mpany has cultivated an excellent team that highly recognizes the Companys values,has passion and technology,is good at innovation and competitive in the industry,is united and enterprising,and keeps unremitting struggle.2.Brand advantage As a leader of own brand+domestic demand in Chinas stationery

222、 industry,the Company has established a leading position for its own brand products amidst competitions of domestic market.The Company ranked the first in Top Ten Enterprises in Chinas Light Industry and Writing Instrument for 12 consecutive years.M&G brand has sound brand recognition among consumer

223、s,and served as the designated stationery brand for Boao Forum for Asia for many years.The Company was selected as one of the“Excellent Products of the Era in the light industry among the first batch of Chinas Famous Consumer Products by the Ministry of Industry and Information Technology.The Compan

224、y has won the title of China Annual No.1 Stationery Brand Award for three consecutive years and Chinas 500 Most Valuable Brands for seven straight years,winning international praise with excellent quality and brand reputation and showing the brand value of Chinese stationery to the world.3.Channel a

225、dvantage The Company has a strong first-mover and leading advantage with a wide and deep coverage of distribution network across China.The Company has established an efficient distribution management system and a domestic terminal network with deep penetration.During the Reporting Period,the Company

226、 continued to broaden and deepen the national network and perfected online and offline channels,forming an omni-channel,multi-level and multi-contact marketing network.At the end of the Reporting Period,the Company has 36 tier-one distributor partners,and about 1,200 tier-two and tier-three distribu

227、tor partners across China,covering approximately 70,000 retail stationery shops with M&G Stationery logo across China,over 700 large retail stores,and more than one thousand of authorized stores in Taobao system,JD.com,Pinduoduo,Douyin,and other e-commerce channels.4.Supply chain advantage The Compa

228、ny benefits from experience of large-scale manufacturing accumulated throughout the past years,independent mold development capability,stable supply chain,sound quality control system and introduction of advanced information management systems.The Company has the capability of large-scale manufactur

229、ing with high quality control standard.The good and stable product quality has won general recognition and favorable comments from consumers.The Company promotes the application of intelligent manufacturing technology in the production and inspection links of the stationery industry,and applies mach

230、ine vision technology in various key links to greatly improve the efficiency of production and inspection,thus serving as a benchmark and demonstration role for transforming the extensive industrial mode into an intensive one.With the idea of partnership in its business operation,the Company has str

231、ived to build a high standard supply chain ecosystem.The Company keeps iterating and upgrading its scientific management for supply chain,and has obtained new practice achievements in information collaboration across the value chain,inventory optimization,financial support for supply chain,managemen

232、t informatization of quality and order,and optimization of supplier performance to help business partners get stronger operation system and simultaneously improve both loyalty and operation capability of our business partners.5.Design and R&D advantage The Company has the capability to respond timel

233、y to market and strong R&D capacity for new products.The Company conducts market research for new product development and identifies market trends.The Company launches about one thousand new products each year to meet consumer needs.The Company has been awarded with such four major international ind

234、ustrial design awards as German iF Award,Red Dot Design Award,G-mark,and IDEA for its product design.The Company has a design studio in Israel,highlighting the world-class design capabilities of M&G Stationery.As of the end of the Reporting Period,the Company owned more than 1,300 patents for invent

235、ion,design and utility models.Annual Report 2024 23/228 The Company has broken through the foreign technical barriers and got hold of the raw material formula and production technology with domestic independent intellectual property rights,greatly enhancing the percentage of home-made raw materials

236、and finished products.The Company has been recognized as a national high-tech enterprise since 2010,and has built a number of national or provincial level technology platforms such as National Industrial Design Center,China Key Laboratory of Light Industry and Writing Instrument Engineering Technolo

237、gy,Shanghai Writing Instrument Engineering Technology Research Center.The testing laboratory of the Company had CNAS certification qualification and its testing capabilities have reached a world-class level.6.M&G Colipus competitive advantages M&G Colipu is committed to providing one-stop procuremen

238、t service solutions for various customers including government,State-owned Key Enterprises and state-owned enterprises,finance,intermediate market(top 500 private enterprises),and MA(Fortune Global 500),with business scenarios covering one-stop office supplies,MRO industrial products,marketing gifts

239、,and employee benefits.It has been working hard in the industry and has accumulated rich service experience,project experience and customer resources.Currently,M&G Colipu has evolved into a leading supplier for governments and enterprises in the online channel,enjoying high brand influence in the in

240、dustry and being widely recognised by customers and suppliers regarding reputation.Over the years,M&G Colipu has made meticulous arrangements for the supply chain of manufacturers.Its product development covers well-known brands at home and abroad,with more than one million of product categories.Thr

241、ough technological innovation and business upgrades,it has achieved full-process visualization and traceability from procurement to supply chain management,and optimized resource allocation and supply chain collaboration efficiency.Leveraging big data analysis,it accurately grasps market demand and

242、changes,drives precise adjustment and iterative upgrades of product strategies,and continuously optimizes the product system.Additionally,M&G Colipu enjoys a nationwide efficient logistic distribution network.It also has an industry-leading intelligent main warehousing system,Automated Storage and R

243、etrieval System(AS/RS)System,and a new intelligent warehouse in East China,covering the whole country and allowing efficient and rapid order response.Furthermore,M&G Colipu is equipped with intelligent logistic systems,such as automated guide vehicles(AGVs),to provide timely and accurate services fo

244、r customers.Meanwhile,it provides a variety of online ordering solutions,including the shopping mall for office supplies,the shopping mall for MRO industrial products,the marketing gift&benefits redemption platform,etc.,to provide customers with convenient procurement services anytime and anywhere.A

245、s a pioneer and industry leader in procurement digitalisation,M&G Colipu has won the titles of National E-commerce Demonstration Enterprise and Shanghai E-commerce Demonstration Enterprise.It has a technical R&D team of approximately one hundred members.M&G Colipu has a business cloud system that al

246、lows comprehensive digital management such as online organisation,communication,business,and management.M&G Colipu has independently developed a digital transaction system and rapid and professional system integration development technology,which has been certified as Information System Security Pro

247、tection Grade III,allowing it to provide a variety of personalised value-added services for different customers,ensure the security and completeness of transaction data,and achieve system integration with key customers.M&G Colipu has a professional team of nearly 2,000 people with enterprising spiri

248、t and years of industry experience,providing end-to-end services from pre-sales to after-sales across 31 provinces,municipalities and autonomous regions in China.Relying on a strong brand presence,strong financial strength,and rich product strength,M&G Colipu adheres to the information-based constru

249、ction of an integrated,transparent and efficient procurement system.With the application of software and hardware intelligent technology and strong system integration technical support,such procurement system meets the diversified,complex and digital procurement needs of customers,keeps increasing c

250、omprehensive competitiveness,and continues to create value for customers.V.Financial Performance during the Reporting Period In 2024,the Company recorded revenue of RMB24,228 million,an increase of 3.76%,and a net profit attributable to its shareholders of RMB1,396 million,a decrease of 8.58%,while

251、net profit attributable to its shareholders after deducting non-recurring profit and loss amounted to RMB1,234 Annual Report 2024 24/228 million,a decrease of 11.75%.As at the end of 2024,the total asset of the Company amounted to RMB16,587 million,an increase of 8.31%.The net asset attributable to

252、shareholders of the listed company amounted to RMB8,910 million,an increase of 13.75%.The Company has maintained healthy growth and its assets are in a good condition.(I)Analysis of principal operation 1.Analysis of change in certain items in income statement and cash flow statement Unit:Yuan Curren

253、cy:RMB Item Amount in the current period Amount in the same period last year Change in the proportion(%)Revenue 24,228,248,698.65 23,351,304,328.03 3.76 Operation cost 19,649,752,559.47 18,946,902,789.11 3.71 Selling expenses 1,738,039,609.61 1,550,242,913.35 12.11 Administrative expenses 981,802,84

254、8.21 817,243,965.61 20.14 Financial expenses-39,623,735.02-54,677,552.48 Not applicable R&D expenses 189,145,980.66 177,525,143.59 6.55 Net cash flow generated from operating activities 2,289,340,796.79 2,616,600,617.09-12.51 Net cash flow generated from investing activities-1,574,839,557.15 30,115,

255、778.76-5,329.28 Net cash flow from financing activities-698,573,860.33-771,123,342.97 Not applicable Other gains 132,438,188.72 96,557,027.08 37.16 Income from investment-364,758.05-3,932,454.66 Not applicable Gain on change in fair value 54,361,789.99 27,190,625.42 99.93 Losses on credit impairment

256、-28,410,867.15-21,830,178.85 Not applicable Losses on assets impairment-12,879,311.68 11,744,806.55-209.66 Gains from asset disposal-10,284.89 3,588,809.94-100.29 Non-operating profits 78,129,813.59 59,663,963.46 30.95 Non-operating expenses 15,492,461.01 10,802,453.44 43.42 Explanation on the reaso

257、n for change in net cash flow from investing activities:The net cash outflow for purchasing bank financial products increased compared with the same period last year.Explanation on the reason for change in other gains:The government subsidies associated with operating activities received and the ove

258、r-deductions of the taxable amount for value added tax during the Reporting Period increased compared with the same period last year.Explanation on the reason for change in income from investment:The losses on investments in associates decreased and income from bank financial products increased duri

259、ng the Reporting Period compared with the same period last year.Explanation on the reason for change in gain on change in fair value:The bank financial products held during the Reporting Period increased compared with the same period last year,leading to an increase in the corresponding gain.Explana

260、tion on the reason for change in losses on credit impairment:The accounts receivable increased during the Reporting Period,leading to the increased provisions for bad debt.Explanation on the reason for change in losses on assets impairment:Axus Stationery made impairment provisions for fixed assets

261、during the Reporting Period,while inventory valuation allowances were reversed in the same period last year.Explanation on the reason for change in gains from asset disposal:Asset disposal incurred loss during the Reporting Period,while it generated income in the same period last year.Explanation on

262、 the reason for change in non-operating profits:The liquidated damages received from customers during the Reporting Period increased compared with the same period last year.Explanation on the reason for change in non-operating expenses:The losses on the retirement of fixed assets during the Reportin

263、g Period increased compared with the same period last year.Annual Report 2024 25/228 A detailed description of the major changes in the Companys business type,profit composition or profit source in the current period Applicable Not applicable 2.Analysis of revenue and cost Applicable Not applicable

264、During the Reporting Period,exclusive of related-party transactions,the Companys core traditional business increased by 2%as compared to the corresponding period of last year,and new business increased by 5%as compared to the corresponding period of last year.(1)Result of principal business by indus

265、try,product,region and sales model Unit:Yuan Currency:RMB Result of principal business by industry By industry Revenue Operation cost Gross margin(%)Change in revenue from last year(%)Change in cost from last year(%)Change in gross profit margin from last year(%)Manufacturing and sales of stationery

266、 and office supplies 9,247,241,443.76 6,176,303,519.87 33.21 2.17 1.63 Increase by 0.35 percentage point Retail industry 14,921,565,054.57 13,442,763,378.60 9.91 4.71 4.74 Decrease by 0.02 percentage point Service industry 1,853,773.49/1.55/Result of principal business by product By product Revenue

267、Operation cost Gross margin(%)Change in revenue from last year(%)Change in cost from last year(%)Change in gross profit margin from last year(%)Writing instruments 2,429,176,939.36 1,386,323,149.56 42.93 6.86 5.04 Increase by 0.99 percentage point Student stationery 3,471,297,284.64 2,293,212,791.68

268、 33.94 0.14 0.28 Decrease by 0.09 percentage point Office stationery 3,571,885,416.82 2,583,183,210.58 27.68 1.74 1.68 Increase by 0.04 percentage point Other products 865,011,177.43 484,826,976.29 43.95 16.36 18.38 Decrease by 0.96 percentage point Direct office supplies 13,831,435,680.08 12,871,52

269、0,770.36 6.94 3.94 4.18 Decrease by 0.21 percentage point Management fee for franchising 1,853,773.49/1.55/Result of principal business by region By region Revenue Operation cost Gross margin(%)Change in revenue from last year(%)Change in cost from last year(%)Change in gross profit margin from last

270、 year(%)China 23,131,948,578.20 18,937,122,093.68 18.13 3.04 3.50 Decrease by 0.36 percentage point Other countries and regions 1,038,711,693.62 681,944,804.79 34.35 21.59 10.74 Increase by 6.43 percentage points Principal business by industry,product,region,and sales model 1.Revenue from principal

271、business of the Company includes revenue from manufacturing and selling stationery and office supplies,revenue from retail industry and revenue from service industry.Annual Report 2024 26/228 2.Revenue from retail industry refers to revenue gained by M&G Colipu and M&G Life through selling non-M&G p

272、roducts.3.Revenue from service industry refers to management fee for franchising.4.Writing instruments refer to products of writing utensil sold by the Company(excluding M&G Colipu).5.Student stationery refers to products of student stationery sold by the Company(excluding M&G Colipu).6.Office stati

273、onery refers to products of office supplies sold by the Company(excluding M&G Colipu).7.Other products refer to products sold by the Company(excluding M&G Colipu)apart from writing instruments,student stationery and office supplies.8.Direct office supplies refer to products in all categories sold by

274、 M&G Colipu.Unit:RMB 0000 Result of revenue by business Business Revenue in 2024 Revenue in 2023 Change in amount Change Core traditional business 932,576.30 913,583.84 18,992.46 2%Direct office supplies business 1,383,143.57 1,330,699.41 52,444.16 4%Large retail store business 147,921.38 133,535.55

275、 14,385.82 11%Transactions offset-40,816.38-42,688.36 1,871.99 Not applicable Total 2,422,824.87 2,335,130.43 87,694.44 4%(2)Analysis of production and sales volume Applicable Not applicable Major products Unit Production Sales Inventory Change in production from last year(%)Change in sales from las

276、t year(%)Change in inventory from last year(%)Writing instruments Piece/Numbers 1,846,537,568 1,896,609,529 463,282,953-3.15-2.74-9.75 Student stationery Piece/Numbers 5,090,485,533 5,153,708,506 540,960,919-6.42-5.81-10.46 Office stationery Piece/Numbers 1,990,558,462 1,986,345,409 180,473,968 3.93

277、 4.57 2.39 Other products Piece/Numbers 25,467,030 23,658,314 10,941,295 21.80 20.68 19.81 Direct office supplies Numbers 518,235,714 518,107,383 15,256,254 2.10 0.25 0.85 Explanation on production and sales volume No (3)Performance of major procurement contracts and major sales contracts Applicable

278、 Not applicable (4)Analysis of cost Unit:RMB Yuan By industry By industry Cost item Amount in the current period Percentage of total costs for the current period(%)Amount in the same period last year Percentage of total costs for the same period last year(%)Percentage change in the amount for the cu

279、rrent period as compared to the same period last year(%)Explanation on the situation Manufacturing and sales of stationery and office supplies Cost of principal business 6,176,303,519.87 31.48 6,077,325,987.81 32.14 1.63 Annual Report 2024 27/228 Retail industry Cost of principal business 13,442,763

280、,378.60 68.52 12,834,514,791.81 67.86 4.74 Service industry/By product By product Cost item Amount in the current period Percentage of total costs for the current period(%)Amount in the same period last year Percentage of total costs for the same period last year(%)Percentage change in the amount fo

281、r the current period as compared to the same period last year(%)Explanation on the situation Writing instruments Cost of principal business 1,386,323,149.56 7.06 1,319,857,248.91 6.98 5.04 Student stationery Cost of principal business 2,293,212,791.68 11.69 2,286,895,433.46 12.09 0.28 Office station

282、ery Cost of principal business 2,583,183,210.58 13.17 2,540,457,217.01 13.43 1.68 Other products Cost of principal business 484,826,976.29 2.47 409,554,808.88 2.17 18.38 Direct office supplies Cost of principal business 12,871,520,770.36 65.61 12,355,076,071.36 65.33 4.18 Management fee for franchis

283、ing/Explanation on other situations of cost analysis No (5)Change in the scope of consolidation due to change in the equity of major subsidiaries during the Reporting Period Applicable Not applicable (6)Major change in or adjustment to the Companys business,products or services during the Reporting

284、Period Applicable Not applicable (7)Major customers and suppliers A.Major customers of the Company Sales of the top 5 customers amounted to RMB5,799.64 million,accounting for 23.94%of the total annual sales.Of the sales of the top 5 customers,sales of related parties amounted to RMB0,accounting for

285、0%of the total annual sales.Unit:RMB Yuan Rank Customer name Sales amount As%of the annual total sales 1 First 2,437,917,790.92 10.06 2 Second 965,737,951.95 3.99 3 Third 947,871,190.08 3.91 4 Fourth 825,942,666.48 3.41 5 Fifth 622,171,144.32 2.57 Annual Report 2024 28/228 Total 5,799,640,743.75 23.

286、94 During the Reporting Period,the sales attributable to a single customer exceeded 50%of the total sales,there are new customers among the top 5 customers,or a small number of customers were heavily depended on.Applicable Not applicable B.Major suppliers of the Company Applicable Not applicable Pur

287、chase amount of the top 5 suppliers amounted to RMB1,524.51 million,accounting for 7.73%of the total annual purchase amount.Of the purchase amount of the top 5 suppliers,purchase amount of related parties amounted to RMB0,accounting for 0%of the total annual purchase amount.Unit:RMB Yuan Rank Suppli

288、er name Procurement amount As%of the annual total procurement 1 First 491,409,752.54 2.49 2 Second 376,575,448.45 1.91 3 Third 266,405,322.39 1.35 4 Fourth 224,471,234.26 1.14 5 Fifth 165,643,592.04 0.84 Total 1,524,505,349.68 7.73 During the Reporting Period,the procurement from a single supplier e

289、xceeded 50%of the total amount,and there were new suppliers among the top 5 suppliers or a small number of suppliers were heavily depended on.Applicable Not applicable Other descriptions No 3.Expenses Applicable Not applicable Unit:RMB Yuan Item in statement Amount in the current period Amount in th

290、e last period Change in the proportion(%)Reason for change Selling expenses 1,738,039,609.61 1,550,242,913.35 12.11 Administrative expenses 981,802,848.21 817,243,965.61 20.14 R&D expenses 189,145,980.66 177,525,143.59 6.55 Financial expenses-39,623,735.02-54,677,552.48 Not applicable 4.R&D investme

291、nt(1)Table of R&D investment Applicable Not applicable Unit:RMB Yuan Expensed R&D investment in the current period 189,145,980.66 Capitalized R&D investment in the current period 0.00 Total R&D investment 189,145,980.66 Proportion of total R&D investment in revenue(%)0.78 Percentage of capitalized R

292、&D investment(%)0.00 (2)Details of R&D personnel Applicable Not applicable Number of the Companys R&D staff 467 Percentage of the number of R&D staff to the Companys total 8.42 Annual Report 2024 29/228 number of employees(%)Educational background structure of R&D personnel Category Number of people

293、 Doctors degree 0 Masters degree 50 Bachelor 264 College degree 98 High school and below 55 Age structure of R&D personnel Category Number of people 60 years old 0 (3)Explanation Applicable Not applicable The total R&D investment of the parent company accounted for 3.41%of the parent companys revenu

294、e.(4)Reasons for the major changes in the composition of R&D personnel and the impact on the future development of the Company Applicable Not applicable 5.Cash flow Applicable Not applicable Unit:RMB Yuan Item Amount in the current period Amount in the same period last year Change in the proportion(

295、%)Reason for change Net cash flow generated from operating activities 2,289,340,796.79 2,616,600,617.09-12.51 Net cash flow generated from investing activities-1,574,839,557.15 30,115,778.76-5,329.28 The net cash outflow for purchasing bank financial products increased compared with the same period

296、last year.Net cash flow from financing activities-698,573,860.33-771,123,342.97 Not applicable (II)Explanation on significant change of profit caused by non-core business Applicable Not applicable (III)Analysis of assets and liabilities Applicable Not applicable 1.Assets and liabilities Unit:RMB Yua

297、n Items Amount as at the end of the current period Percentage of Amount as at the end of last period Percentage of Change in percentage Explanation Annual Report 2024 30/228 total assets at the end of current period(%)total assets at the end of last period(%)for the current period over the last peri

298、od(%)Held-for-trading financial assets 2,569,112,993.22 15.49 1,402,518,595.12 9.16 83.18 During the Reporting Period,the purchased bank financial products increased.Bills receivable 17,425,526.65 0.11 38,196,088.94 0.25-54.38 During the Reporting Period,the balance of M&G Colipus commercial accepta

299、nce bills decreased compared with the beginning of the year.Non-current assets due within one year 862,796.30 0.01 1,360,640.55 0.01-36.59 During the Reporting Period,the compensation from the former shareholder of Axus Stationery was received.Other current assets 243,981,456.14 1.47 90,964,160.29 0

300、.59 168.22 During the Reporting Period,term deposits due within one year were added as performance bonds.Investment real estate 51,381,912.17 0.31/During the Reporting Period,Axus Stationery rented out its own factory buildings.Construction in progress 148,515,963.08 0.90 95,391,194.19 0.62 55.69 Th

301、is is mainly due to the investment in the Central China Base Project during the Reporting Period Other non-current assets 19,704,965.34 0.12 12,202,603.55 0.08 61.48 During the Reporting Period,prepayments for equipment and engineering increased compared with the beginning of the year.Short-term bor

302、rowings 341,061,169.83 2.06 190,174,166.67 1.24 79.34 During the Reporting Period,Axus Stationerys short-term borrowings increased.Contract liabilities 143,347,403.44 0.86 106,038,218.29 0.69 35.18 During the Reporting Period,the obligations to transfer goods to customers in exchange for considerati

303、ons received increased compared with the beginning of the year.Long-term borrowings 6,000,000.00 0.04 30,027,500.01 0.20-80.02 During the Reporting Period,Axus Stationerys long-term borrowings decreased.Estimated liabilities 369,927.50 0.00/This is mainly due to the addition of new pending lawsuits

304、during the Reporting Period Capital reserve 840,320,493.39 5.07 373,093,781.49 2.44 125.23 Effects of the changed interest in M&G Colipu.Please refer to the Announcement on the Capital Increase of a Majority-owned Subsidiary and the Companys Waiver of Preferential Subscription Rights and Related-par

305、ty Transaction(Announcement No.:2024-020).Other comprehensive-11,423,451.31-0.07-945,577.17-0.01 Not applicable This is mainly due to the effect of differences in the Annual Report 2024 31/228 income translation of the financial statements of Back to School Holding AS in foreign currencies during th

306、e Reporting Period.Other descriptions No 2.Overseas assets Applicable Not applicable(1)Asset size Including:overseas assets of 376,042,463.25(unit:Yuan,currency:RMB),accounting for 2.27%of the total assets.(2)Explanation for the high proportion of overseas assets Applicable Not applicable 3.Major re

307、stricted assets as at the end of the Reporting Period Applicable Not applicable 1.Mortgaged assets (1)The subsidiary,Axus Stationery,entered into the Maximum Mortgage Contract numbered ZD9874202200000005 with Shanghai Pudong Development Bank Co.,Ltd.Fengxian Sub-branch on 15 September 2022,under whi

308、ch it pledges its lands and plants under Property HFDQ Zi(2013)No.015437,Property HFDQ Zi(2013)No.013396 and Property HFDQ Zi(2015)No.015718 at the maximum principal limit of RMB200 million and for the term of credit line from 15 September 2022 to 14 September 2025.(2)As of 31 December 2024,Axus Sta

309、tionery used its other current assets-RMB140 million of term deposits due within one year as collateral guarantee for the bank acceptance bill in the amount of RMB140 million issued by the Suqian Branch of the Bank of Jiangsu.(3)As of 31 December 2024,Axus Stationery used its other current assets-RM

310、B1 million of term deposits due within one year as collateral guarantee for the bank acceptance bill issued in the amount of RMB1 million.(4)The subsidiary Jiangsu Marco Pen Co.,Ltd.(江蘇馬可筆業有限公司)entered into the Maximum Mortgage Contract numbered BD133202411010001201 with Jiangsu Siyang Rural Commerc

311、ial Bank Co.,Ltd.on 30 October 2024,under which it pledges its lands and plants under Su(2019)Siyang County Real Estate No.0018047,Su(2019)Siyang County Real Estate No.0018032,Su(2019)Siyang County Real Estate No.0017990 and Su(2019)Siyang County Real Estate No.0017993 at the maximum principal limit

312、 of RMB49,507,300 and for the term of credit line from 30 October 2024 to 17 October 2027.2.As of the end of the Reporting Period,the Company had restricted monetary funds of RMB1,235,601,269.94,mainly including term deposits over three months and guarantee deposits for engineering payments.4.Other

313、descriptions Applicable Not applicable (IV)Analysis on industry operating information Applicable Not applicable For details,see II.Description of the Companys industry conditions during Reporting Period in Section III Management Discussion and Analysis of this report.Annual Report 2024 32/228(V)Anal

314、ysis of investment Overall analysis of external equity investment Applicable Not applicable During the Reporting Period,the Company made external investments.1.Shanghai M&G Online Selection Stationery Co.,Ltd.(上海晨光在線甄選文具有限公司)was newly incorporated as a wholly-owned subsidiary with a registered capit

315、al of RMB20 million.2.During the Reporting Period,the Companys majority-owned subsidiary M&G Colipu increased its capital,upon which the Companys interest in the said subsidiary changed from 93.39%to 77.78%.Please refer to the Announcement on the Capital Increase of a Majority-owned Subsidiary and t

316、he Companys Waiver of Preferential Subscription Rights and Related-party Transaction(Announcement No.:2024-020).3.During the Reporting Period,the Company invested RMB35,292,100 to acquire an 8.6%interest in Beckmann,making Beckmann a wholly-owned subsidiary of the Company.1.Significant equity invest

317、ment Applicable Not applicable 2.Significant non-equity investment Applicable Not applicable 3.Financial assets measured at fair value Applicable Not applicable Securities investment Applicable Not applicable Description of securities investment Applicable Not applicable Private equity fund investme

318、nt Applicable Not applicable Derivatives investment Applicable Not applicable 4.Progress of major asset restructuring and integration during the Reporting Period Applicable Not applicable (VI)Sale of significant assets and equity interests Applicable Not applicable (VII)Analysis of major controlled

319、companies and shareholding companies Applicable Not applicable Unit:0000 Currency:RMB Company Name Nature of the business Major products and services Registered capital Total asset Net assets Net profit Shanghai M&G Zhenmei Stationery Co.,Ltd.（上海晨光珍美文具有限公司）Wholesale and retail Stationery and office

320、supplies 1,000.00 4,616.25 223.09-66.58 Shanghai M&G Colipu Office Supplies Co.,Ltd.Wholesale and retail Office supplies 59,400.00 688,563.96 235,379.88 32,178.31 Shanghai M&G Wholesale and Stationery and office 19,941.94 164,334.00 83,734.86 11,068.90 Annual Report 2024 33/228 Stationery&Gift Co.,L

321、td.（上海晨光文具禮品有限公司）retail supplies M&G Life Enterprise Management Co.,Ltd.（晨光生活館企業管理有限公司）Wholesale and retail Stationery and office supplies 10,000.00 100,087.90-5,679.45-1,629.11 Shanghai M&G Jiamei Stationery Co.,Ltd.（上海晨光佳美文具有限公司）Manufacturing,wholesale and retail Stationery and office supplies 3,0

322、00.00 4,789.91 4,156.63 48.17 Shanghai M&G Information Technology Co.,Ltd.（上海晨光信息科技有限公司）Wholesale and retail Office supplies 5,000.00 37,714.94-764.96-2,630.05 Shenzhen Erya Creative and Cultural Development Co.,Ltd.（深圳爾雅文化創意發展有限公司）Design and so forth Design,office supplies and so forth 2,000.00 1,6

323、60.70 1,039.67-16.32 Shanghai M&G Office Stationery Co.,Ltd.Wholesale and retail Office supplies 5,000.00 80,546.48 56,547.22 11,422.36 Axus Stationery(Shanghai)Company Ltd.Production,sale and so forth Stationery and office supplies 8,100.00 72,536.18-909.09-3,785.25 Shanghai Chenxun Enterprise Mana

324、gement Co.,Ltd.（上海晨訊企業管理有限公司）Service Information Consultation 23,500.00 34,676.22 24,350.25 3,191.98 Shanghai Qizhihaowan Culture and Creativity Co.,Ltd.（上海奇只好玩文化創意有限公司）Service Creative service 10,000.00 7,050.85 4,030.20 941.89 Guangdong South China M&G Stationery Co.,Ltd.(廣東華南晨光文教用品有限公司)Wholesale

325、and retail Stationery and office supplies 5,000.00 14,207.52 5,806.11 1,155.30 Hubei Chaoxin Real Estate Co.,Ltd.(湖北潮信置業有限公司)General goods warehousing services Stationery and office supplies 6,000.00 21,083.43 7,078.87-135.66 Shanghai M&G Online Selection Stationery Co.,Ltd.(上海晨光在線甄選文具有限公司)Wholesale

326、 and retail Stationery and office supplies 2,000.00 4,391.04-587.97-2,587.97 (VIII)Structured entities controlled by the Company Applicable Not applicable VI.Discussion and Analysis on Future Development of the Company(I)Industry pattern and trend Applicable Not applicable With the changes in the wa

327、y of life and consumption habit of consumers,Chinas retail industry entered a new stage of redevelopment and innovation.Stationery industry faces challenges with uncertainty of external environment,diversification of retail channels,and more individualized demands from main customers group(now being

328、 the post-00s and post-10s).With the changing demographics of China in particular the decreasing birth rate,stationery industry revenue growth comes less from by unit volume growth,and more from consumption upgrade and product upgrade.Domestic market demand for mid-to high-end stationery products ke

329、eps increasing.This provides opportunities for mid-to Annual Report 2024 34/228 high-end stationery products with better quality and higher price.Chinas population of 1.4 billion accounts for about 18%of global population,while leading stationery companies in China can continue to mostly rely on the

330、 huge domestic market,they also have room for international expansion in international markets,which could reinforce each other under favorable conditions.The global influence of Chinese culture continues to rise.Not only do domestic consumers seek emotional resonance by purchasing Chinese trend pro

331、ducts,but overseas consumers are also beginning to embrace Chinese elements,showing a positive outlook on Chinese goods.Leading enterprises focused on building omni-channel operation capabilities and implemented refined management.With the popularity of the Internet,smart phones,and online transacti

332、ons,peoples consumption habits and consumption scenarios have changed.Consumers access to information is becoming more fragmented,and new-generation marketing means are becoming more diversified,including online media platforms(such as Weibo,WeChat,Xiaohongshu,and Douyin)and IP topic creation,which

333、further tests enterprises ability to make quick response to industry trends.Compared with small-and medium-sized enterprises,leading enterprises boast stronger and richer whole network marketing and operation capabilities.They formulate refined marketing strategies by city to reach consumers.In addition to online traffic,offline channels are also required to realize refined management by empowerin