[年报]晨光股份(603899):上海晨光文具股份有限公司2021年年度报告（英文版）
原标题:晨光股份:上海晨光文具股份有限公司2021年年度报告（英文版） Starting Afresh 2021 was a year full of challenges and opportunities for M&G and also was a year when M&G started afresh once again. Affected by COVID-19 resurgence, "Double Reduction", and weakening domestic expectations, the year 2021 was tough for all of us. Our colleagues and upstream and downstream partners demonstrated strong resilience and tackled the difficulties head on. The Company’s "One main body and two wings" businesses maintained steady development and solid growth, core competitiveness of the Company continued to improve. In the past year, every person was remarkable and it was not easy for everyone. We pushed the boundaries of our self-perception and limits of performance. As we all kow, life goes on and business needs to develop. We salute every remarkable M&G colleague! In 2021, the Company recorded revenue of RMB17.6 billion, an increase of 34%, and a net profit attributable to the parent company of RMB1.52 billion, an increase of 21%. The year 2021 is the beginning of China's 14th Five-Year Plan, and also the first year of M&G's new five-year strategy. The Company applied new development philosophy to guide high-quality development and steadily executed Company's strategy. One important reason underlying the Company’s solid and high-quality development is that we have a strong sense of mission and responsibility, and we have been insist on doing the tough but right things for more than 3 decades. In 2022, the international situation is complicated and the COVID-19 pendamic still has a long way to go. Some investors are concerned that demographic trends and "Double Reduction" negatively impact the realization of the Company's new five-year strategy. We believe that if you desire something strong enough, you can always work out a way, there are always new demands in market, which need to be satisfied with innovative products and new capabilities. The key question is not whether you can or can not, but whether you want it or not. If you truly aspire to something, you can make the seemingly impossible come true. We see more opportunities in product categories, channel improvement, new business development, and international markets. We believe that difficulties and challenges are the touchstones of a good company, those with stronger management capability and better business models can excel. We also believe that in the face of difficulties, a strong internal drive can better unleash our potentials. In addition to having a good "energy, will and spirit", we also keep pace with the times, strive for innovation and embrace change, keep an eye on macro trends, carbon neutrality, learn from outstanding industry leaders, take initiative to embrace new technologies such as artificial intelligence and metaverse, and continue to optimize our business eco-chain. This year, we also formulated our sustainable development strategy, with the mission of "Writing a Sustainable Business Future", with sustainable products, response to climate change, sustainable supply chain, and empowering employees and communities, as key pillars, in a bid to achieve high-quality and sustainable development. M&G has made its jouney for more than three decades. To realize our vision to become a "world-class M&G", we need passion and dreams, sharing and focus, mission and responsibility, to provide better products and services for China and the world. We would like to express our heartfelt thanks to our employees, to our customers and partners, and to our shareholders, for your support and trust. M&G is willing to work together with all of you, remain true to our original aspiration, and forge ahead to promote a sustainable, sound and high-quality development, and create better value for all shareholders. Strive towards a "world-class M&G". We look forward to working with you towards a bright future! Board of Directors of Shanghai M&G Stationery Inc. 29 March 2022 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 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, Quan Qiang, CFO of the Company and Zhai Yu, the head of 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 Period The Company proposes to distribute cash dividend of RMB6.00 (tax inclusive) per 10 shares based on the Company's total share capital registered as at the registration date for the implementation of dividend distribution. The profit distribution plan is subject to being submitted to the Company's 2021 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 involved in this annual report do not constitute the Company's 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. Has 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 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. XI. Others □ Applicable √ Not applicable 本报告分别以中、英文编制，在对中外文文本的理解上发生歧义时，以中文文本为准。 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. 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 ......................................................................... 52 Section VI Major Events ..................................................................................................................... 54 Section VII Changes in Shares and Shareholders ................................................................................. 71 Section VIII Preferred Shares ................................................................................................................ 79 Section IX Bonds ................................................................................................................................ 80 Section X Financial Report ................................................................................................................ 81
Section I Definition I. Definition In this report, unless the content requires otherwise, the following terms shall have the following meanings:
Section II Company Profile and Key Financial Indicators I. Company Information
II. Contact Information
III. Introduction to General Information
IV. Information Disclosure and Place for Obtaining the Report
V. Stock Information
VI. Other Relevant Information
VII. Major Accounting Data and Financial Indicators for the Past Three Years (1) Major accounting data Unit: Yuan Currency: RMB
(2) Key financial indicators
Reporting Period √ Applicable □ Not applicable Revenue increased by 34% over the same period of last year, mainly due to the steady growth of core traditional businesses, and the rapid growth of new businesses, such as direct office supplies, M&G Colipu, and large retail store, Jiumu Store. VIII. Difference in the Accounting Information under the PRC Accounting Standards for Business Enterprise ("PRC GAAP") and Overseas Accounting Standards (1) 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 applicable (2) 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 (3) Explanation on the differences between PRC GAAP and Overseas Accounting Standards: □ Applicable √ Not applicable IX. Key Financial Data for the Year of 2021 by Quarter Unit: Yuan Currency: RMB
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 √ Applicable □ Not applicable Unit: RMB Currency: RMB
Non-recurring profit and loss 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 Currency: RMB
XII. Others □ Applicable √ Not applicable Section III Management Discussion and Analysis I. Discussion and Analysis of Operation The year 2021 is the beginning of China's 14th Five-Year Plan, also the first year of M&G's new five-year strategy. The year was full of opportunities and challenges. In face of the challenges posed by repeated COVID-19 outbreaks, "Double Reduction" policy and competition, the Company implemented the new development philosophy, to build a new development pattern, and focused on consumers to improve the quality and efficiency of development. Core traditional business was steadily deveoloping while new businesses was fast expanding. In 2021, revenue reached RMB17.6 billion, an increase of 34%, and a net profit attributable to shareholders of listed companies was RMB1.52 billion, an increase of 21%. Under the leadership of the Board of Directors, the management and all employees achieved annual targets, laying a solid foundation for the new five-year strategy, established the Company's sustainable development strategy, and striding forward towards the vision of "world-class M&G". Operation of the Company in 2021 is reported as follows: 1. Core traditional core businesses continued product optimization During the Reporting Period, we adjusted the structure to promote growth and reduced the quantity and improved the quality of product development. The Company developed products with the idea of best- selling products and controlled number of SKUs. Achieved good results in reducing quantity and improving quality. The number of new products dropped significantly, while the contribution of a single product increased significantly. The Company optimized the quality control process, enhanced the efficiency of supply chain, and improved new product development process. The growth performance of categories developed through IPD method was much better than average level. The Company adjusted the structure to promote growth by continuing to exert more efforts on high-end product development and optimize the product mix. We introduced a number of popular IPs, enriching our product category and further improving our product identity. Mass market stationery segment. With "exploitation of potential, collaboration, product capability" as the key words, continued the strong product strategy and developed less and better products. This segment continued to optimize product structure and increase contribution of individual products. It established a mechanism to unleash the potential of long life cycle products and has achieved initial results. Promotion for category was carried out collaboratively with offline distribution channel to increase on shelf ratio, coordination was made with online channel to identify potential products and form individual best-selling products for distribution. Online product management and ordering procedures were formulated to meet customer ordering needs and increase online sales of consumer products. Premium stationery segment. With the direction of "structural adjustment and high growth", we carried out product upgrading and best-selling products development, and M&G Youpin series saw a continuous upgrade. The contribution of individual products increased. The Company focused on the development of high-end products to satisfy high-end consumer demand and optimize the existing product offering of premium stationery segment. We focused on Tiers 2 and 3 distribution centers and key stationery retail shops, promoted structural adjustment of partners and terminals through better category positions, and improved the proportion of premium stationery segment in traditional stationery shops. Arts and kids drawing segment. The Company optimized the product structure and new product development process, focused on the promotion of long life cycle products and essential products, continued to promote the building of arts and kids drawing area in key stationery shops in various channels, developed national art stores, exerted more efforts on the leading stores and incremental stores, and improved the marketing rate of arts and kids drawing at stationery shops. We accelerated the expansion of online product lines and opportunity categories and created online best-selling products, seeing significant increase in the online share. We also actively seek to expand professional art and educational products. Office stationery segment. The Company strengthened the development and promotion of office products, focused on the development of innovative products solving pain points of end users, and created online product offering. The Company expanded M&G stores for office supplies and developed model stores for office supplies and developed large office stationery customers across the country. 2. Core traditional businesses continued omni-channel, and improved retail service capabilities During the Reporting Period, core traditional businesses continued omni-channel, following changing trend of consumption demand and habits, continued to optimize retail operation, towards a channel structure where multi-level distribution as the main body, with more online, more direct to customer, omni-channle and multiple contact point. Further the change from a wholeseller toward a brand retail service provider. Develop traditional channels with a focus on improving individual store quality. The Company improved single store quality with a focus on model stores; strengthened categories promotion and dedicated retail spaces for key products and increased on shelf ratio; promoted the upgrading of channel structure, and expanded leading stores and community business districts in the industry; empowered stationery shops and helped stationery shops improve retail capacities. As of the end of the Reporting Period, the Company had 36 Tier 1 distributor partners across China, and Tiers 2 and 3 distributor partners in about 1,200 cities, covering over 80,000 retail stationery shops using the store sign "M&G Stationery" across China. Empowers stationery shops with digital tools. M&G Alliance APP covered more than 100,000 stationery shops, with a unified merchadize pool, built automated inventory replenishment mechanism. Based on users' behavioral and order data, continuously tested and iterated product offering, empowering channel partners to manage merchandize and improved order satisfaction rate. Therefore helped "the right match between right shops and right productss", practiced our idea of partnership in business operation. Actively explore direct model. Continued to promote direct supply business from the headquarters to partners of the Company. The office direct supply model has effectively developed, forming a building plan and combination strategy for the best-selling products of leading office stationery stores. Premium stationery segment continued to expand coverage of ideal domestic retail stationery shops (physical bookstores, variety retail shops, and stationery retail terminals), and explored other new models. Increase online channels. Actively promoted online businesses, collaborated with the various segments to improve schedule and criterion for online product development; continued to optimize the structure of direct sales and explored ways to optimize the creation of best-selling products; developed new channel businesses, continued to promote Pinduoduo and Tiktok, Kuaishou and other new channel businesses; improved membership program management. M&G Tmall Flagship Store has more than one million members and growing well. During the Reporting Period, M&G Technologies revenue was RMB527,01 million, representing an increase of 11% from the previous year. 3. Continue to improve brand image During the Reporting Period, the Company made progress in corporate brand, brand communication, and public relations, launched a number of season-themed events such as cherry blossom season, children season and exam season, communicated unique selling points of products, and improved media efficiency and input-output ratio. Focusing on the concept of "good Chinese stationery with warmth", we enhanced brand recognition of M&G in stationery shops and consumers. The company won the title of 2021 "China Annual No.1 Stationery Brand Award" and "China's 500 Most Valuable Brands". 4. Increase R&D investment, promote digitalization, and form new organizational capabilities Promote design and R&D. During the Reporting Period, the Company actively performed forward-looking research and design, focused on core technology of products, accelerated the speed of technological progress and results transformation, improved quality based on the application performance indicators and actual usage scenarios that consumers can directly perceive. The Company has developed original products, such as the cutting technology of "arc surface" of pen tip, the development of quick-dry and smooth gel pen, and the industry's first food-grade kids art products (oil painting stick and color mud). Besides, the Company exerted efforts on quality improvement and control and applied machine vision intelligent detection technology. During the Reporting Period, the Company led and participated in the compilation of a number of national standards, industry standards and group standards, enhancing the Company's influence in the pen-making industry and the cultural and sports industry. Improve production management. During the Reporting Period, the Company vigorously promoted lean management, implemented cost reduction and efficiency enhancement, continued to promote MBS (M&G Business System) management, and integrated the MBS process improvement principle-standard with the Company's business model to continuously improve management capabilities. For the best-selling products, we established a rapid response mechanism among product development, sales, and production, shortened production lead time and improved order fulfillment rate. Coordinate supply chain. During the Reporting Period, the Company promoted the integrated product development model from series to parallel model. The Company applied digitalization technologies to improve the accuracy of order forecasting; continued to make innovation with consumers as the center; continued to expand high-quality supply chain resources at home and abroad to provide guarantee for the development of high-end products. Logistics support. During the Reporting Period, the Company worked on building a logistics service that can support multiple business models. According to requirements of different business and diverse scenarios, to provide differentiated, refined and efficient logistics service support for each business segment, strengthened logistics service support capability. Digitalization development. During the Reporting Period, following the blueprint for digital transformation, the Company focused on such key areas as membership operations and channel operations, strengthened data application and analysis capabilities as well as scalable system architecture capabilities, promoted the gradual integration of production, sales, and supply chain links, improved order response speed, and strengthened the management and internal control, standardization and risk management. Construction of organization and talent. Organization and talents are important basis for realizing our strategy. During the Reporting Period, based on the Company's new five-year strategy, the Human Resources Center formulated targeted human resources plans based on business needs, continued to optimize organizational efficiency, incentive, talent management and corporate culture system. Focusing on the selection, use, training and retention of talents, we strived to build an efficient team that can support the realization of our five-year strategy plan. We exerted intensified efforts on the MT program, improved long- and short-term incentive plan, ensure that employees pay attention to the achievement of the Company's performance in the current year and realize the long-term synchronous development of core employees and the Company. M&G keeps in mind the social responsibility of national enterprises and encourages employees to actively participate in various public welfare programs of the Company. During the Reporting Period, M&G was awarded the best social responsibility award in HRflag Employer Branding Creativity Competition. 5. Large retail store business steadily developed Jiumu Store has a clear positioning in the Company’s new five-year strategy, which is to become the bridgehead for M&G brand and product upgrading, and also to become a national leading premium recreation and creativity retail brand. Through more exposure of M&G brand and products, more product development of M&G's premium strationery products, sharing retail capabilities, and providing timely consumer insights. During the Reporting Period, Jiumu Store improved merchandize capacity and efficiency; established a dynamic analysis platform to improve merchandize operation; devleped omni-channel marketing and promotion, better thematic seasonal marketing and rollout schedule, improved the accuracy of sales forecast, strengthened the accuracy of inventory replenishment and allocation, optimized in-store inventory. Jiumu Store improved operation quality of individual stores, through better store display, marketing & promotion, staff training; analyzed and followed up on the implementation of key retail indicators; continued to improve membership programs. It has more than one million registered members, which improved outreach to and interaction with consumers. During the Reporting Period, facing the repeated outbreaks of the pandemic, M&G Life (including Jiumu Store) revenue was RMB1.05 billion, an increase of 60%, among which Jiumu Store revenue was RMB950 million, an increase of 70%. As of the end of the Reporting Period, the Company had 523 large retail stores in China, of which 60 are M&G Life stores, and 463 are Jiumu Stores (319 own stores and 144 franchise stores). During the Reporting Period, losses of the large retail stores reduced. Unit: RMB 0'000
6. Rapid growth of direct office supplies business Direct office supplies business, M&G Colipu saw continuous development. After nearly a decade since its start, it has been built competitive capabilities needed as an industry-leader. Focusing on in-depth exploration of existing customers and sales from new customers, Colipu expanded opportunities for new categories and new businesses such as MRO and marketing gifts, further enhancing brand influence in the direct office supplies market, and being selected as the 2020 Shanghai "specialized, refined, special and new" SME. Customer development. As for central SOEs customers, we were shortlisted for projects of CHN Energy and China General Technology (Group) Holding Co. Ltd.; as for government customers, we were shortlisted for Jiangsu Provincial Government Procurement Online Mall; as for financial customers, we were shortlisted for the projects of Agricultural Bank and China Development Bank; as for MRO, we won the projects of PowerChina and China National Nuclear Corporation. Warehouse distribution logistics. The East China Intelligent New Warehouse (Phase I) was put into use, starting a new generation of e-commerce intelligent warehousing system, and advanced automatic storage & retrieval system was adopted, becoming more intelligent warehousing logistics. Technology platform construction. We upgraded and transformed the rule engine, realized process automation through RPA robots, and build a big data system and data center, improving Colipu’s overall work efficiency, and enhanced rapid response to provide customers with high-quality services. During the Reporting Period, M&G Colipu’s revenue was RMB7.76 billion, an increase of 55%, net profit was RMB240 million, an increase of 68%. Unit: RMB 0'000 |
