上海晨光文具股份有限公司2019年度企業社會責任報告（英文版）（40頁）.PDF

1、 上海晨光文具股份有限公司 SHANGHAI M&G STATIONERY INC.2019 年度企業社會責任報告 2019 Corporate Social Responsibility Report About This Report The Board of Directors of the Company and all its directors guarantee that,this report does not contain any false information,misleading statement or material omission,and severall

2、y and jointly accept responsibility for the truthfulness,accuracy and completeness of the contents of this report.Dear stakeholders,this“Corporate Social Responsibility Report of Shanghai M&G Stationery Inc.for the Year of 2019”(CSR report)is the second annual CSR openly issued to the public by“M&G

3、Stationery”.This report aims to truthfully present the CSR development and practice of the Company and reveal to our shareholders,employees,government agencies,customers and consumers,partners,local communities and other stakeholders of the Companys CSR activities.Reporting Period:From 1 January 201

4、9 to 31 December 2019 Reporting Cycle:reported annually Scope of Reporting This report covers Shanghai M&G Stationery Inc.and its subsidiaries.For the convenience of expression,they are referred to as“M&G Stationery”,“M&G”,“the Company”,“we”or“us”etc.herein.Basis of Preparation This report is prepar

5、ed in accordance with National Standards on“Social Responsibility Report Preparation Guidelines”(GB/T 36001-2015),“Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises”(CASS-CSR 3.0)as promulgated by the Academy of Social Science of China and“Guidelines to Report Sustainab

6、ility”(G4)of Global Reporting Initiative(GRI).Access to the Report The report is prepared and published in simplified Chinese,and is available in both hardcopy and electronic versions.The latter may be downloaded from the website of Shanghai Stock Exchange(http:/).II Report Assurance The report was

7、approved through the twentieth meeting of the fourth session of the Board of Directors and the thirteenth meeting of the fourth session of the Board of Supervisors held on 10 April 2020.本報告分別以中、英本報告分別以中、英文編制，在對中外文編制，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

8、the Chinese version.In case of any discrepancy between the Chinese version and the English version,the Chinese version shall prevail.Contents I.Company Profile.1 II.Compliance,the Cornerstone of Corporate Governance.3(I)Corporate governance.3(II)Compliance with laws and policies.4(III)Internal contr

9、ol.5(IV)Operation performance.6(V)Taxation obligation.7(VI)Awards to the Company.7 III.Focus on Sustained Improvement of Stakeholders Satisfaction.10(I)Returns to shareholders.10(II)Investor relations.11(III)Information disclosure.11(IV)Consumer rights protection.12 IV.Collaboration-Full Collaborati

10、on with Partners.13(I)Suppliers rights and interests.13(II)Distributors rights and interests.13 V.Innovation-development and manufacturing of better products.15(I)Research&development capacity.15(II)Manufacturing capability.16(III)Quality control.17(IV)Testing capability.19(V)Workplace safety.20 VI.

11、Employee Care-People Oriented,One for All and All for One.21(I)Protection of lawful rights and interests of employees.21(II)Talent training and development.21(III)Caring for employees and corporate culture.23 VII.Sincerity-to Helping the Underprivileged,transmitting Love.25 VIII.Mutual Benefits-Adhe

12、re to Green and Sustainable Development.31(I)Awareness of environmental friendliness.31(II)Action for environment protection.34 IX.Outlook.36 I.Company Profile Shanghai M&G Stationery Inc.was incorporated on 18 July 2008 and was listed on Shanghai Stock Exchange on 27 January 2015 with stock code 60

13、3899.As an integrated stationery products and service provider,the Company integrates the value of creativity into its products and service advantages,advocates fashionable stationery lifestyle,and provides solutions for study and work.The traditional core businesses include designing,developing,man

14、ufacturing and selling writing instruments,student stationery,office supplies and other products of and its brands,while new businesses mainly focus on developing one-stop office service platformM&G Colipu,retail storesM&G Life Museum and Jiumu Sundries Store,as well as the Internet and e-commerce p

15、latformM&G Technologies.With a sound,independent and complete operation system from design and development of brands and products,procurement of raw materials and accessories,product manufacturing,supply chain management and marketing network management to warehouse and logistics,the Company is capa

16、ble of performing independent operation of business in the market.As a highly recognized company in Chinas stationery industry,the Company operates in the following segments including children,students,office employees and lifestyle,with its extensive and“deep”product lines ranking top in the domest

17、ic stationery industry.For instance,with regard to pen manufacturing particularly,we have remained first among top 10 pen manufacturers in Chinas light industrial sector for eight consecutive years.During the recent years,stationeries bearing M&G brand can be seen even on many national high profile

18、conferences such as APEC conferences,Boao Forum for Asia and Global CEOs Conference.2 Pursuing the mission of“making study and working more joyful and effective”and upholding the core value of“sincerity,collaboration,focusing and mutual success”,the Company has been committed to developing premium s

19、tationery products and sharpening its leading competitive edge in terms of the design and function of products through its advanced and international design team as well as by integrating the sources from global creative team and external.Moreover,the Company has,through effectively integrating of e

20、ssential resources such as raw materials,technology,capital,market,talents and creativity from a global perspective,endeavored to present the whole world the product innovation and brand values of M&G Stationery.3 II.Compliance,the Cornerstone of Corporate Governance(I)Corporate governance During th

21、e Reporting Period,the Company,in strict compliance with laws and regulations such as Companies Law,Securities Law and Code of Corporate Governance for Listed Companies,as well as regulatory documents issued by China Securities Regulatory Commission regarding the governance of listed companies,has c

22、ontinuously optimized the corporate governance structure,established sound internal control system,standardized the business operation and improved the corporate governance practice,to ensure there are rules and policies to follow and therefore prevent operation risks and effectively guarantee the l

23、egitimate rights and interests of all shareholders of the Company.In 2019,we held 5 board meetings,4 supervisors meetings and 2 general shareholders meetings.The general shareholders meeting,Board of Directors,Board of Supervisors,Management/monitoring Monitoring/guidance Management Appointment Supe

24、rvision Review Accountability Accountability Accountability Accountability Accountability Internal audit Management General shareholders meeting Business activities External auditor Board of Supervisors Board of Directors Audit Committee Remuneration and Appraisal Committee Nomination Committee Stra

25、tegic Committee Committees of the Board of Directors Accountability Accountability Accountability Review Employment Election Election Supervision 4 the management as well as independent directors perform functions in a regulative manner.By virtue of the strict segregation of powers and duties as wel

26、l as the inter-collaboration amongst authority body,decision-making body,supervisory body and executive body,the general policies of the Company is very effective in preventing the abuse of power.Subordinated to the Board of Directors,the Strategic Committee,Audit Committee,Remuneration and Appraisa

27、l Committee and Nomination Committee perform their respective functions in strict compliance with respective implementing rules.In 2019,5 meetings were held by the Audit Committee,1 meeting by the Strategic Committee and 1 meeting by the Remuneration and Appraisal Committee.With their professional e

28、xpertise,all these committees have played positive roles in improving the business operation and promoting best practice.The independent directors of the Company,in compliance with“Rules on the Functioning of the Board of Directors”,“Guidelines on the Performance of Duties by Independent Directors”a

29、nd other applicable regulations,have exercised discretionary review over the deliberation and decision making procedures regarding the appointment of Company officer(s),the use of the raised funds and related party transactions etc.and expressed their independent professional opinions.They have effe

30、ctively fulfilled their duties,ensuring the Company operating in a regulative manner and gaining quick growth.(II)Compliance with laws and policies Legal compliance is fundamental to business operation.M&G Stationery highly emphasizes risks management during operation and continuously promotes polic

31、y establishment and culture building for compliance to ensure its stable operation.In 2019,the Company held 9 training sessions for legal compliance,including 3 sessions related to compliance in advertising activities,1 session for employment contracts,4 sessions for intellectual property and 1 sess

32、ion for barcodes management.In addition to relevant workplace training,the Company has established sound anti-5 fraud policies and encourages whistle blowing on any fraud.The Company has entered into“Procurement Integrity Agreement”with all suppliers during the year.Hyperlinks for whistle-blowing on

33、 any frauds are available at the obvious place on the M&G Cloud integration platform and OA information system.The Company makes posters to promote anti-fraud on a regular basis.Generally,the posters are publicized at a place with large people flow in the Company as well as in each branch.After putt

34、ing up,we usually have a regular checking for the situation of the poster.If missing,we will replace it with a new one.Any employees and external interested parties with direct or indirect business connection with the Company may whistle-blow any actual or suspected fraudulent behavior conducted by

35、the Company and its employees by means of whistle blowing hot-lines,email,correspondence etc.Furthermore,the Company promotes anti-fraud to all employees and suppliers by means of WeChat official account platform and corporate WeChat platform of the Company.(III)Internal control The Board of Directo

36、rs of the Company has established sound and effective internal control system in compliance with“General Guidelines on Enterprise Internal Control System”and its interpretations as well as other regulatory requirements governing internal control,with the Board of Supervisors overseeing the establish

37、ment and implementation of internal control system by the Board of Directors.The management shall be responsible for directing and coordinating the day-to-day running of the Company.The Company has established sound and complete internal control policies and procedures which give detailed specificat

38、ion on such issues as significant business decisions at corporate level,investing and/or financing activities,related parties transactions,assets management as well as approval process,limits of approving authority and pertinent responsibilities pertaining to payments to third parties and expense re

39、imbursement.Meanwhile,instructed by the Audit Committee subordinated to the Board of Directors,the Audit Department of the Company has conducted independent audit and 6 appraised on the effectiveness and efficiency of the design and implementation of internal control system.There was no significant

40、internal control deficiency detected during the year of 2019.The Company,upon the detection of other deficiencies through internal audit work,proactively analyzes the underlying reasons for deficiencies and works out correction plans in which responsible employees and deadlines for correcting defici

41、encies shall be specified for prompt follow-up and monitoring on the correction,therefore ensuring the effectiveness of the internal control system.Moreover,based upon the above,the Company continuously improves the internal control environment through sustained optimization of internal control proc

42、esses and pertinent supporting system.The Company continuously promotes the management teams awareness in compliance via various means to further ensure the effective implementation of internal control system and processes.The Company fully discharged its social responsibilities while maintaining so

43、und business operation in compliance with laws and regulations.(IV)Operation performance In 2019,the Company recorded an operation revenue of RMB11,141,101,400,representing an increase of 30.53%as compared to the corresponding period of last year.The net profit attributable to shareholders of the li

44、sted Company amounted to RMB1,060,083,600,representing an increase of 31.39%as compared to the corresponding period of last year,while net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss amounted to RMB1,005,188,000,representing an increase of

45、34.13%as compared to the corresponding period of last year.As at the end of 2019,total asset of the Company amounted to RMB7,565,115,300,representing an increase of 33.25%as compared to the corresponding period of last year.The net asset attributable to shareholders of the listed company amounted to

46、 RMB4,201,500,400,representing an increase of 23.18%as compared to the corresponding period of last year.The Company has maintained healthy and rapid 7 growth with sound operation in asset.Key financial indicators 2019 2018 Year-on-year increase or decrease in the current period(%)Basic earnings per

47、 share(Yuan/share)1.1523 0.8770 31.39 Basic earnings per share,net of non-recurring gains and losses(Yuan/share)1.0926 0.8146 34.13 Weighted average ROE(%)28.17 26.16 Increase of 2.01 percentage points Weighted average ROE,net of non-recurring gains and losses(%)26.71 24.30 Increase of 2.41 percenta

48、ge points(V)Taxation obligation Taxation compliance has always been considered by the Company as basic requirement of performing social responsibility and reciprocating local community.The Company has,in strict compliance with applicable taxation laws and bylaws,performed its legal obligation of tim

49、ely and full settlement of tax liabilities arising from bona fide business activities.In 2019,the total tax payment amounted to RMB676 million in compliance with applicable taxation laws and its tax credit rating was Grade A.(VI)Awards to the Company Number Description Issued by 1 Model corporate fo

50、r safety operation for 2018 Political and Legal Affairs Sub-Commission to CPC Committee in Shanghai 2 Fortune top one hundred entities within Fengxian District of Shanghai for the year of 2018 Peoples Government of Fengxian District of Shanghai 8 3 Title of“Outstanding Employment Enabler”of Qingcun

51、Town for the year of 2018 CPC Committee of Qingcun Town of Fengxian District of Shanghai/Peoples Government of Qingcun Town,Fengxian District of Shanghai 4 Title of“Top Ten Taxpayer in Terms of Average Tax Amounts per Mu”of Qingcun Town for the year of 2018 CPC Committee of Qingcun Town of Fengxian

52、District of Shanghai/Peoples Government of Qingcun Town,Fengxian District of Shanghai 5 Title of“Top Ten Taxpayer in Terms of Total Tax Amounts”of Qingcun Town for the year of 2018 CPC Committee of Qingcun Town of Fengxian District of Shanghai/Peoples Government of Qingcun Town,Fengxian District of

53、Shanghai 6 Title of“Social Charity Award”of Qingcun Town for the year of 2018 CPC Committee of Qingcun Town of Fengxian District of Shanghai/Peoples Government of Qingcun Town,Fengxian District of Shanghai 7 Title of“Extraordinary Innovation Award”of Qingcun Town for the year of 2018 CPC Committee o

54、f Qingcun Town of Fengxian District of Shanghai/Peoples Government of Qingcun Town,Fengxian District of Shanghai 8 The Second Prize for State Science and Technology Progress Award issued by China National Light Industry Council for the year of 2018 China National Light Industry Council 9 9 The Third

55、 Prize for State Science and Technology Progress Award issued by China National Light Industry Council for the year of 2018(in connection with the development and commercialization of mechanical pencils)China National Light Industry Council 10 Top one hundred enterprises in Chinas light industry Chi

56、na National Light Industry Council 11 Documented into the book of“Finding the Invisible Champion among Chinese Manufacturers”(Shanghai volume)The Peoples Publishing House Liberal Arts Division/Shanghai Municipal Commission of Economy and Informatization 12 Top ten enterprises within the sub-sector o

57、f cultural and education supplies pertaining to light industry sector in China China National Light Industry Council/China Stationery&Sporting Goods Association 13 Top ten pen manufacturers in light industry of China China National Light Industry Council/China Writing Instrument Association 14 The G

58、old Medal for China International Stationery Exhibition(CISE)within Chinas cultural and education sub-sector for the year of 2019 China Stationery&Sporting Goods Association 10 III.Focus on Sustained Improvement of Stakeholders Satisfaction(I)Returns to shareholders Emphasizing reasonable returns to

59、 our investors,the Company maintains ongoing and stable dividends policies to fully safeguard the benefit of minor investors.Pursuant to“Notice Regarding Further Implementation of Cash Dividend Distribution by Listed Companies”and“Regulatory Guidance No.3 of Listed Companies Cash Dividend Distributi

60、on of Listed Companies”issued by the China Securities Regulatory Commission,the Company has formulated a“three-year dividend distribution plan(From 2017 to 2019)”.The Company distributes dividends in cash or shares,or cash-and-shares,and if the Company satisfies the conditions for cash dividends,pri

61、ority should be given to profit distribution by means of cash dividends.During the recent three years,the cash dividends paid by the Company have accounted for over 34%of net profit attributable to the ordinary shareholders of the listed company in the consolidated financial statements,which ensured

62、 the investors sharing the business results.Year for dividend distribution Amount of dividends distributed per 10 shares(RMB)(inclusive of tax)Amount of cash dividends(RMB)(inclusive of tax)Net profit attributable to the ordinary shareholders of the listed company in the consolidated financial state

63、ments for the year(RMB)Percentage of the net profit attributable to the ordinary shareholders of the listed company in the consolidated financial statements(%)2019 4 368,000,000 1,060,083,625.03 34.71 2018 3 276,000,000 806,847,308.41 34.21 2017 2.5 230,000,000 634,040,991.46 36.28 11(II)Investor re

64、lations Investor relations are vital to a public listing company.Firstly,a listed company usually actively manages the relations with investors through ongoing communication of information to investors,which allows the investors to keep up with the development of the Company and coordinate with and

65、support its development.Secondly,proactive investor relations management may,to the greatest extent,avoid the undervaluation of the share price of a listed company and reflect its true value in the market.Last but not least,proactive investors relations management may help to improve the goodwill of

66、 a listed company and build trust with the investors,thus facilitating the business development.In 2019,the Company cooperated with institutional investors survey,including through on-site manner,telephone conferences and WeChat Group,on a regular basis.The Company has filed with Shanghai Stock Exch

67、ange as required and publicized at SSE E-Interaction.The Company each year holds two survey reception sessions,during which the management usually answer queries relating to the market in order to enhance transparency and creditability of the Company.All queries raised by shareholders via Internet p

68、latform were appropriately replied.Moreover,the Company has,in consecutive years,held public reception conferences to deliver answers to questions concerned by the investors for safeguarding the interests of Companys shareholders as a whole.(III)Information disclosure The Company has,pursuant to“Rul

69、es Governing the Listing of Stocks on Shanghai Stock Exchange”and other relevant regulatory requirements,actively discharged its obligation of disclosures,promptly disclosing relevant information fairly and ensuring the correctness and completeness of the disclosed information.Any significant events

70、 and resolutions shall be promptly released by the Company,and disclosed at the designated press media,including“China Securities Journal”,“Shanghai Securities News”,and“Securities Times”.12 In 2019,31 interim announcements were released and 4 regular announcements were officially released in profes

71、sional due care.We regularly report the insider registration and promptly file,therefore eliminating any insider trading and ensuring that all the investors can access the information of the Company equally.The Company was valued as“A”level in terms of disclosure of company information during 2018 a

72、nd 2019.(IV)Consumer rights protection The Company has formulated a series of strict,internal policies on quality control and manufacturing procedure control,including the procurement of raw materials,product manufacturing as well as after sales service.Furthermore,the Company strictly complies with

73、 national standards and/or industrial standards in controlling manufacturing procedures.In the absence of applicable national or industrial standards,the Company will adopt the internal standards to ensure that the quality of the product can meet applicable standards and continuously improve custome

74、rs experience.Through pre-sale market research and guided by customer orientation policy,we follow up the demands of customers to understand their requirements on the products and thus improve customer satisfaction.Meanwhile,the Company actively regulates its behavior when competing with its competi

75、tors so as to protect the consumers rights and interests while preventing unfair competition and combating fake and shoddy products.In order to improve its consumer services,the Company has formulated related procedures,including(1)appraisal for customer satisfaction procedures whereby pre-defined a

76、nd effective appraisal methods are employed to identify the extent of customers satisfaction and evaluate the performance of quality control system,which shall be subject to subsequent improvement based upon the result of appraisal;(2)Procedures of monitoring the responsiveness to customer needs whe

77、reby any complaints filed by customers can be effectively controlled to eliminate recurring troubles and cater for customers needs.13 IV.Collaboration-Full Collaboration with Partners(I)Suppliers rights and interests By taking advantage of unique supply chain,the Company can act quickly to the chang

78、ing market in every link,including data collection,R&D and product design,procurement,manufacturing and distribution.The Company was the first in the industry to introduce a scientific supplier evaluation and grading system and to establish a professional supplier management team as well as SQE team

79、,with a view to constantly boosting suppliers performance and developing strategic partnership.The Company maintains long-term partnership with suppliers by respecting their lawful rights and interests as well as preserving their intellectual property,confidential and proprietary information.Moreove

80、r,the Company has continuously optimized the procurement process and system and implemented fair and unbiased supplier appraisal system to nurture a positive business environment for suppliers.Last but not least,the Company has appropriately performed its contractual obligations in order not to prej

81、udice the lawful rights and interests of suppliers.In order to prevent commercial bribery and other forms of unfair competition in part with the suppliers,the Company has entered into“framework agreement on the transparency to preserve financial probity during procurement cycle”with suppliers whereb

82、y the lawful rights and interests of both parties are preserved and business partnership relations are not prejudiced.(II)Distributors rights and interests The Company has,through years of research and practice in establishing marketing channels,set up a distinct marketing regime named as“M&G partne

83、r pyramid style marketing”.By taking advantage of powerful influence of M&G brand,extensive stationery product lines,ongoing training of business management mode as well as the unique system of regional exclusive dealership,the Company has further 14 strengthened business partnership with distributo

84、rs of all tiers.By adhering to the core value of“top-down input of resources”and“top-down sharing of operating profit”,M&G Stationery has cemented a stable business ecosystem whereby both distributors and M&G Stationery can achieve win-win outcome.“Top-down input of resources”shall refer to the busi

85、ness mode whereby distributors of each tier shall,under the umbrella of the centralized marketing system of the Company and within the scope of their responsible regions,be responsible for the administering of the distributors of lower tier,expansion and maintenance of end marketing channels,as well

86、 as investing on manpower,capital,hard and software etc.In that case,M&G has dramatically reinforced the control over and penetration into marketing channels.Moreover,through centralized training,implementation of appropriate control mechanism,KPI management,establishment of corporate culture,standa

87、rd marketing procedures,M&G Stationery has forged a very competent and high-performing sales team.“Top-down sharing of operating profit”shall refer to the business mode whereby business partners of each tier can earn all guaranteed operating profits under the mechanism of uniform pricing strategy ch

88、anneled down from the Company.In that case,distributors of all tiers are motivated to develop the markets within the scope of their authority and responsibilities.As at the end of 2019,the Company has 35 tier-one distributor partners(provincial level),approximately 1,200 tier-two and tier-three dist

89、ributor partners,covering over 85,000 retail stationery shops.15 V.Innovation-Development and Manufacturing of better products (I)Research&development capacity The Company has developed“entire design system”covering the whole process ranging from consumption value design,product design,product mold

90、development to brand image design,and adopted trend-,theme-and experience-oriented development model to develop new products from all categories based on consumer insight.Boasting a powerful research lab subordinated to technology center,the Company has taken the lead in tackling various technical d

91、ifficulties,including those incorporated in the“thirteenth five-year plan”project.Meanwhile,M&G industrial park is also the home to China writing instrument industry base,China writing instrument center,national industry design center and China key laboratory of light industry and writing instrument

92、 engineering technology.The Company each year pours into approximately RMB 100 million in the design and R&D of new products and technology currently possessing over 700 patents.M&G Stationery has been awarded with such heavyweight product design medals as Gold Ideas Medal and Red Star Medal.In 2019

93、,M&G Stationery was awarded three international product design honors,including 2019 German iF Product Design Award and Good Design Award(G-Mark)awarded to the design of“Enjoy Writing”gel pen and German Red Point Medal awarded to metal bookmark bearing quintessence of Chinese culture.16 (II)Manufact

94、uring capability The Company uses the brand manufacturing model that combines sales-based production,independent production and OEM outsourcing production,develops independent systems for raw material procurement,as well as product manufacturing and selling,and has established its brands in the mark

95、et with advantages of the whole industry chain in designing,researching and developing,manufacturing and selling stationery.With large-scale manufacturing experience accumulated over the past few years,independent mold research and development capability,stable supply chain system,sound quality cont

96、rol system and adoption of several information management systems,the Company has reached sound manufacturing and quality control level under large-scale manufacturing with product qualification ratio as high as 99.96%.Moreover,the Company has grasped the core technology of writing instrument in nib

97、,ink and its matching,developed self-owned mold development technology,and participated in preparation of national standard and industry standard for several products.The product design center of the Company was acknowledged as a“state level industrial design center”.17 (III)Quality control The Comp

98、any always highly valued the quality of products to achieve greater customer satisfaction.By consistently adhering to requirements as prescribed in ISO9001:2008 quality control mechanism,the Company has upgraded the quality of products and supporting service on an ongoing basis.1.Establishment of qu

99、ality control mechanism Both production quality control department and OEM quality control department have been established and subordinated to the production center of the Company to jointly conduct the control and inspection of the products.The Company has set up quality surveillance network throu

100、ghout the whole business cycle covering supplier management,raw material procurement,manufacturing process,finished goods inward as well as control over OEM products.The Company has,in strict compliance with the requirements of ISO9001:2008,compiled and maintained 40 types or so of quality control d

101、ocumentations,including quality control manuals,program files,regulatory documents,quality control plans,authentication documents and records etc.By availing itself to all these procedures,the Company has enabled the effective implementation of the quality control system and strengthened the monitor

102、ing of the quality control system.2.Standard quality control process The Company has constructed well-defined quality inspection mechanism,mainly 18 including:(1)Control over the received raw materials,i.e.to inspect on the quality of the received raw material,parts and accessories.Moreover,in consi

103、deration of particular nature of the materials and under certain circumstances,the Company may appoint third party quality inspectors to conduct quality inspection on sample basis in compliance with GB2828.(2)The Company has,in compliance with quality standards prescribed in ISO9001:2008,formulated

104、process quality inspection policies to incorporate all workshops and production procedures into the total quality management regime.(3)The quality control process on the finished goods comprises the inspection on the received finished goods and OEM products manufactured by third party(ies).Inspectio

105、n on in-house made finished goods:The Company shall conduct 100%full inspection on the exterior appearance and function of all in-house made goods.Inspection on OEM products manufactured by third party(ies):All OEM third party manufacturers are required by the Company to supply pre-batch production

106、samples for comprehensive inspection by both the products quality control department and craftsmanship departments.Trial production in small batches shall not commence until the samples have passed the inspection.Finally the batch production in large quantity shall commence once the trial production

107、 products have passed the inspection by the products quality control department of the Company.Once the production is over,formal sign-off upon inspection shall be conducted in compliance with pre-defined standards set by the Company.Only the finished goods that have met the quality standards can be

108、 received and later delivered by the Company.The quality inspectors team of the Company shall not only inspect,monitor and control the quality of products along the industrial chain,but also conduct PDCA inspection on the whole quality inspection system itself so as to harness continuous improvement

109、 in the quality of both in-house products and outsourced products as well as the effectiveness of the quality control system itself.By adopting the foregoing quality assurance system,the Company is well ahead of its majority of its counterparts 19 within the sector in terms of product deficiency rat

110、io.(IV)Testing capability After approximately one year of deliberation,the testing laboratory of M&G Stationery has been officially awarded the accreditation certificate of China National Accreditation Service for Conformity Assessment(CNAS),which indicates that the testing capacity and testing resu

111、lts of and from the testing laboratory of M&G Stationary has gained mutual multi-laterally acknowledgment by its counterparts in 101 countries worldwide.As the unique accreditation body that issues the most authoritative certificates to inspection labs,CNAS also tops its counterparts in terms of tim

112、elines of review and demanding standards applied during review.Upon the acknowledgment from the CNAS,M&G Stationery has not only possessed the testing capacity of the highest standards at home,but also will be eligible for conducting accreditation jobs and having access to bi-lateral and/or even mul

113、ti-lateral international exchange with its overseas counterparts.The test report issued by M&G Stationery will,within its capacity of accreditation,can be deemed internationally binding and authoritative.M&G Stationery has as always advocated research,development and innovation on its own.The in-hou

114、se testing laboratory is the critical success factor of quality assurance in terms of its technical capacity.Whats more,the testing laboratory is shouldered with the responsibilities of formulating applicable standards in a bid to usher Chinese 20 stationery products into a new era.M&G Stationery wi

115、ll remain committed to reinforcing the strength and capacity of the laboratory while optimizing the quality control regime on an ongoing basis.In addition to ensuring the quality of products,the laboratory will help to drive further research,development,and innovation by taking advantage of its cutt

116、ing-edge testing capacity in pursuit of the goal of carving the name of“China made refills”with more pride.(V)Workplace safety In order to ensure workplace health and effectively respond to unsolicited accidents,the Company has formulated such institutionalized workplace guidelines as“Control Polici

117、es on Workplace Safety”,“Policies on Workplace Safety Related Training”,“Control Policies on Fire Prevention Practice”and“Precautionary Plans against Typhoon,Flood and Lightning Strike”etc.Moreover,the Company has taken such initiatives to prevent any potentially hazardous risks from impacting the w

118、orkplace safety as including pre-employment orientation on workplace safety,upgrade of such fire-fighting and fire prevention devices as well as ad hoc or recurring inspection on workplace safety etc.In 2019,there were no accidents in connection with workplace safety reported pursuant to“Ordinance o

119、n the Investigation and Reporting of Workplace Safety Related Accidents”issued by the State Council.21 VI.Employee Care-People Oriented,One for All and All for One(I)Protection of lawful rights and interests of employees In strict compliance with the“Labor Law”and other relevant laws and regulations

120、 as well as social security laws and bylaws,the Company covers old-age insurance,medical insurance,work injury insurance,unemployment insurance,maternity insurance as well as housing provident funds,so as to provide a healthy and safe working and post-job environment for employees and effectively sa

121、feguard their lawful rights and interests.In addition,the Company has formulated its control policies on workplace safety.We conduct training with regard to safety to increase safety awareness,and regularly conduct safety inspection,fire-fighting rehearsals to identify and avoid potential safety haz

122、ards.(II)Talent training and development Generally,M&G Stationery aims to build a world-class team with highly ethical,dedicated,and high-quality employees.To support the rapid growth and effective operation,the Company has built a mechanism for selecting and developing self-motivated and self-disci

123、plined talents.M&G Stationery offers competitive remuneration package to its employees within the industrial sector,and is also consistent in promoting and facilitating the promotion of those highly competent employees who match the culture of M&G Stationery and take the ownership of responsibilitie

124、s.By establishing multiple channels of vocational development and forging an employees team of different skill levels,M&G Stationery has remained an enabler of outstanding professionally competent employees while focusing on the development of generic management talents,multi-savvy management talent

125、s as well as highly professional technocrats playing a leading role.22 1.Development of talents A slew of workplace training modes are available to employees of the Company,including new staff orientation,pre-employment training,workplace site training,special skills training and other forms of trai

126、ning whereby:(1)Mechanism of training the potential executives will enable the managers of all levels to receive trainings on the improvement of management skills so as to assist the Company in forging an executive team boasting combined skill sets in business operation,management and leadership,who

127、 will in future direct the Company in a more institutionalized,orderly and effective way while reflecting the Companys culture in terms of uniform management semantics,management style and management philosophy.(2)Mechanism of professional skills development will enable the backbones of the manufact

128、uring team of M&G Stationery to receive complete vocational training and improve their professional acumen.By nurturing the corporate culture of coaching,the technical expertise handed down from years of business development can be passed to less experienced employees,who will in future form integra

129、l part of technocrats team boasting excellent professional competence and official recognition.(3)The“M&G Sailing to Future MT”project will enable new graduates to be developed into a competent talent boasting the potential of future leaders,who will be aligned to the development objectives of the C

130、ompany with respect to their strength.The operation of the MT project is very instrumental to attracting talents who possess the potentials of the most competent future leaders to maintain sustained competitive edge of M&G Stationery.Moreover,the MT project will have strategic impact on the Companys

131、 business whereby the Company will be able to identify,develop and retain competent talents at lower costs and spawn employees strong sense of affiliation to the Company arising from reciprocation.2.Vocational development Diversified channels and tools of vocational development are available to empl

132、oyees 23 of the Company according to their job functions categorized into executive,functional and technical gateways.(III)Caring for employees and corporate culture Cozy and joyful working environment and relaxation facilities are made available to each employee of M&G Stationery.One can find withi

133、n the Companys premises such facilities as fabulous office buildings,book bars,gym,indoor basketball square,training classroom,employees dormitory,canteen etc.Moreover,the Company will regularly hold such inter-employees recreational activities as sports events,art festivals,weekend parties etc.for

134、employees to choose according to their personal interest so as to enable employees to balance between work and life.1.During the M&G sporting season,sizeable sports events are held amongst all M&G employees where the value of“joyful sporting activities make healthy life”is advocated.By holding sport

135、s events amongst all employees,they will be given a chance to put into full play their physical potential while interacting with other team members so as to highlight their team cohesion and collective sense of pride.2.M&G art festivals enable employees to showcase their soft art-related skills.Art

136、festivals are held in-house to promote M&G culture while enriching the spare-time life of employees whereby employees are able to enhance their taste of art and culture and lubricate cross-department communication.Moreover,art festival is a theatre at which M&G Stationery and soft talents of employe

137、es are showcased to enhance cohesion.24 3.As a vital form of holding recreational activities amongst employees,the M&G Society is also a theatre for nurturing sense of ownership and affiliation of employees towards M&G Stationery.Summarily,employees are enabled to showcase their alternative skills v

138、ia such a wonderful theatre of M&G Society,which in turn helps to put forward M&G culture of harmony and health.25 VII.Sincerity-Helping the Underprivileged and Transmitting Love M&G Stationery has,since the commencement of business,incorporated social responsibilities into the development of busine

139、ss activities and committed itself to tapping on such public welfare activities as public education,charity events and financial support to poverty relief etc.Kicking off in September 2015 as endorsed by Shanghai Charity Foundation,the special fund of M&G rainbow public welfare(hereinafter as“M&G ra

140、inbow charity”)financed a slew of public welfare projects featured by the brand of M&G Stationery,including the“Gold Seeds Plan”to focus on caring for juveniles whose parents are migrant workers,“Greatest Love under the Azure Sky”to draw public concern with such special group as those suffering from

141、 autism,“M&G Hearts Plan”to care for in-house employees and“Rainbows are Coming Plan”to advocate charity and public welfare in collaboration with NGOs.1.“Gold Seeds Plan”to finance the public education of the underprivileged The“Gold Seeds Plan”project v.2.0 experienced a takeoff during the year of

142、2019 when the charity activities purporting to promoting M&G brands take in new forms other than mere donation of supplies,including the donation of M&G rainbow creative classroom,renovation of village school campus etc.26(1)Donation of stationery kits:more than 11,000 stationery kits were distribut

143、ed under the“Gold Seeds Plan”for the year to enable more than 500 teachers to receive indispensable pedagogic tools.(2)M&G rainbow creative classroom plan:during the year of 2019,M&G donated creative classrooms for 10 village schools and over 12,000 books,50 students desks,300 students chairs,50 boo

144、k cabinets and more than 10 types of childrens fine art creative supplies coupled by both online and classroom training sessions for teachers.27 (3)Financial assistance to the underprivileged teachers and students:50 teachers received financial aids amounting to RMB100,000 and 128 students were awar

145、ded with scholarship for outstanding students amounting to RMB58,400 during the reporting year.2.“Greatest Love under the Azure Sky”plan Debut of charity project titled as“The Kids of the Stars:Coordinated by Shanghai Promotion Center for City of Design,the articles hand made by the“Kids of the Star

146、s”were on display at the 24th International Hand-made Articles Exhibition held in Milan of Italy in 2019 and applauded by international children and their parents.Moreover,during the 40th anniversary of Shanghai-Milan design education forum,the charitable stationery kits were exchanged between the r

147、epresentatives of the two cities as a token of heralding a new era of friendship between Shanghai and Milan.28 3.“M&G Heart Plan”to care for in-house employees In 2019,“M&G Rainbow Charity”continued to finance the study support and scholarship of employees minor offspring and provide financial aids

148、to employee suffering from serious diseases to resolve and relieve the problems of further studies of the underprivileged employees kids and poverty arising from unsolicited serious diseases contracted by in-house employees.Aggregate RMB140,000 of financial aids and charitable scholarship were disbu

149、rsed to qualifying employees.Moreover,6 charitable medicare service events were accessed by qualifying employees for the benefit of approximately 300 headcounts.29 4.Charitable activities under“Rainbow is Coming Plan”Initiated and sponsored by“M&G Rainbow Charity”,both the employees and business par

150、tners of the Company participated in various charitable activities to showcase the positive energy of M&G peers.(1)Three-hour charitable donation in petty cash simply from your fingertips:A charitable activity was held by the Company in Songjiang District of Shanghai amongst in-house employees where

151、 300 employees donated petty cash to charity group and collect the token of loving hearts;(2)The journey of an egg:The Company officers and employee volunteers etc.launched a charitable walk within Shanghai to collect the token of loving hearts and conducted charitable auction on charitable supplies

152、 at the final destiny 50 kilometers away from the starting point of the walk;(3)Village based education commissioner of Jack Ma plan was attended by M&G staff to study the current status of village based education by site visit to village school in collaboration with partners of Alibaba and without

153、disturbing the day-to-day full-time jobs.(4)Public welfare course:Employees,by taking advantage of their specialties,voluntarily offered interesting arts courses for children in remote rural area.30 In addition to launching various charitable activities,“M&G Rainbow Charity”donated 50,000 pieces of

154、oil pastel packed in charitable kits in collaboration with Shenzhen ONE Foundation during the year of 2019.“M&G Rainbow Charity”will,in continued partnership with Shenzhen ONE Foundation,extend partnership in donating charitable students bags and colored pens to reinforce the influence of M&G Brand.

155、We firmly believe that we will be even more socially responsible in terms of charity with more parties partnering with us.31 VIII.Mutual Benefits-Adhering to Green and Sustainable Development(I)Awareness of environmental friendliness Bearing in mind the awareness of sustainable development,the Compa

156、ny highly values and advocates green policy,making sure it is effectively implemented in its business activities.The Company endeavored to forge an environmentally friendly manufacturing plant and took active part in and coordinated the environment preservation activities to respond to state strateg

157、y of sustainable development.Moreover,the Company advocated sustainable consumption to nurture the culture of being green and endeavored to reduce the emission of carbon dioxide so as to preserve our mother earth.1.Green production The environmental design and the recurring use of environmentally fr

158、iendly materials are encouraged.(1)Environmental design Simplified design:simplified parts,reduced mechanic procedures,reduced energy consumption and lowered emission of carbon dioxide;No tinting in design cycle:application of color-free plastic while doing best to avoid the use of colored printing,

159、reduced application of polluting color powder to preserve earth.(2)Recurring use of Such consumables as replaceable refills;Ink and refill in large volume due to their extended durability to reduce depletion.(3)Pollution-free material Breakthrough in the development of fully edible colored ink has s

160、ignificantly enhanced the health and safety of the fine art supplies used by children.32 The development of lead-free materials and their application in making pen points has ensured the health and safety of essential raw materials so as to contribute to the course of environment protection.With the

161、 smooth progress of R&D project on New Environmentally Friendly Materials for Writing Instrument enshrined under the state thirteenth five-year plan,quite a few sub-topics have passed the research stage.Due to the increased demand for enhanced environmental friendliness and quality of pens imposed b

162、y overseas nations,pens of enhanced environmental friendliness and diversified functions are bound to be the darling of the market in future.Hence the pen manufacturing sector will no doubt call for the rollout of nascent environmentally friendly materials in making pens.With the progress in researc

163、h and development of lead-free materials,the Company is endeavoring to enhance the overall technicality of our pen manufacturing sector,which will be translated into increased profitability and added value of products.In that case,we will be able to accelerate our speed of transformation from a mass

164、 pen manufacturer to a premium pen manufacturer.With the commercialization of nascent lead-free materials,the Company will place less reliance on non-environmental friendly raw materials in the upcoming years.In that case,any harm to human health arising from such heavy metal as lead will be brought

165、 under control and the volume of VOC emission will be reduced to reap both social and ecological benefits.Moreover,botanic plants abound within the factory premises,indicating that the Company highly values environment preservation.During the production process,the plastic raw granular edges did not

166、 produce solid waste or environmental pollution after going through smashing,re-granulating and recycling process;paperboard edges for package was recycled and sold to local recycle stations for recycled paper.The Company has not admixed any harmful recycling waste in its production,so no volatile g

167、as that is harmful to the health of human beings was produced.Besides,domestic wastewater was disposed in accordance with sewage treatment regulations set by the local government.33 2.Business activities under the green policies The roles and responsibilities of each department of the Company in ter

168、ms of environment preservation are that:(1)Production center shall be responsible for continuous control of energy consumption,clean production as well conducting“6S”control procedures so as to maximize the usage of natural resources.(2)R&D center shall be responsible for the research,development an

169、d marketing of nascent energy-saving craftsmanship and technology.(3)Equipment and engineering department shall be responsible for monitoring and administering the consumption of energy by means of energy related data collection,analysis and comparison with those provided by the production center so

170、 as to help to improve craftsmanship.The Company shall,based upon the data of energy consumption,work out proposal for energy saving and emission reduction for further implementation.(4)The infrastructure construction department shall be responsible for conducting environmental feasibility studies a

171、gainst new construction projects in a bid to ensure that any resources to be inputted into the new project shall meet the requirements of environment preservation.The Company has from time to time instilled into employees the awareness of environment protection and advocated the application to workp

172、lace.For example,employees are encouraged to turn off the light after work,use both sides of each sheet of paper as well as use voice-controlled and/or sensors energy saving facilities for the purposes of energy saving.Moreover,the Company has also encouraged consumers at large to take steps to pres

173、erve environment by instilling into the public its awareness of environment preservation via such media as newspapers,magazines and Internet and by holding onsite environment preservation events.34(II)Action for environment protection In 2019,the Company successfully acquired Axus Stationery(Shangha

174、i)Company Ltd.(hereinafter as“Shanghai Axus”).As an enterprise awarded with the title of state level hi-tech company,Shanghai Axus boasts prominent competitive edge within the sub-sector of wooden pencil and cutting edge advantage in technical research and development in segmented products with over

175、seas distribution channels covering over 80 countries and region(s).Shanghai Axus currently owns more than 50 patents covering the formula of pencil lead,formula of paint coating,timber production and processing and equipment of pencil production and a domestically and internationally prestigious wo

176、oden pencil brand named MARCO.Shanghai Axus has as always pursued the belief of understanding,cherishing and caring trees,which has been translated into the production of wooden pencils under MARCO brand.It has been well acknowledged by the public that Shanghai Axus has spared no effort promoting en

177、vironment protection.Improvements have been made with respect to craftsmanship of manufacturing MARCO pencils so as to mitigate the consumption of resources and maximize the usage of readily available resources without compromising the safety and quality of products.No tropical timber is applied dur

178、ing the production of MARCO pencils without appropriate authentication.Moreover,in order to reduce the consumption of satinwood(a type of scarce wood under state protection of the second level)during the production of pencils,Shanghai Axus trail blazed the industry sector through the introduction of

179、 nascent craftsmanship whereby the Company could replace satinwood with fast-growing poplar in producing pencils and put the new technology into production in 2009.Shanghai Axus has established three timber processing centers to harness the supply of raw material for pencils production adjacent to e

180、ach of the three fast-growing poplar forest zones at Yili of Xinjiang Autonomous Region,Changbai Mountain of Jilin Province and Siyang of Jiangsu Province.Shanghai Axus has fully translated the awareness of environment preservation into the entire industrial chain starting from logging to the cultiv

181、ation of forest.35 36 IX.Outlook As indicated in report of the 19th CPC National Congress,Chinas economy has shifted from a high-speed growth stage to a high-quality development stage with innovation as the main driver.Facing the consumption upgrade and the change in demand among the young generatio

182、n,M&G Stationery will embrace these challenges,upgrade its branding,products and channels,as well as maintain momentum for high-quality growth.At present,M&G Stationery is a pioneer on the innovation path in Chinese stationery industry,completed a stunning transformation from Made in China to Create

183、d in China.Looking ahead,M&G Stationery will,as always,focus on premium quality and pursue constant innovation in response to the changing demand of consumers.The Company will also develop itself into a well recognized brand with global competitiveness and boost the healthy and sustainable developme

184、nt in the industry,helping a sustainable and high-quality growth in China.Strive for greatness through a small pen.As a socially responsible company in China,M&G Stationery has actively fulfilled social responsibilities since its beginning,combined social responsibilities with corporate development.

185、During 2019,M&G Stationery has made efforts to boost various patriotic activities,online and offline,like“Young Pioneers Gathering”and“Travel with the National Flag”and other events.Furthermore,its efforts to improve public welfare also involve education,charity,poverty alleviation and other fields.Looking forward in 2020,M&G Stationery will continue to fulfill our public value,as always care about and support the development in public interests,culture and education.