[年报]晨光股份(603899):上海晨光文具股份有限公司2023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2023年年度报告（英文版） Staying True to Original Aspiration and Forging Ahead Letter to Shareholders The year 2023 presented formidable challenges. Internationally, we confronted a complex environment and a sluggish economic recovery. Domestically, we grappled with diminishing external demand and subdued domestic consumption, exacerbated by a mix of cyclical and structural issues. Despite these trials, M&G remained steadfast and united, successfully navigating these challenges and maintaining robust and steady operations. The year 2023 was the third in the Company's new five-year strategy. Moreover, it marked a point of transition. During the course of the year, we were steadfast in our long-term perspective. By focusing on model stores, advancing our omni-channel layout and nurturing innovative product capabilities, we ensure stable growth for our core traditional business. Meanwhile, our new business, including direct office supplies and large retail store, maintained rapid growth. We worked hard to advance policy development, doing so with a focus on the M&G Business System (MBS), digitalization and talent cultivation. This boosted our operational efficiency and laid a solid foundation for the Company's sustainable development. In 2023, the Company recorded revenue of RMB23.35 billion, an increase of 16.78%, and a net profit attributable to its shareholders of RMB1.52 billion, an increase of 19.05%. We also celebrated Jiumu Store's seventh anniversary in 2023, a year in which we flourished. Jiumu Store recorded revenue of RMB1.24 billion, an increase of 52.58%, and a net profit of RMB25.72 million. Furthermore, the total number of Jiumu Stores exceeded 600. Finally, after seven years of dedicated effort, we have built Jiumu Store a bridgehead. In 2023, we emphasized quality over quantity in product development, dedicating ourselves to elevating the quality of the products we offered. We addressed consumer pain points, and studied their satisfactory points and points of posts in pursuit of greater consumer satisfaction. At M&G, we value every detail throughout the consumer experience, endeavouring to "embrace" each customer with products designed with care and warmth. In 2024, we'll remain committed to our mission of "make study and work more joyful collaboration. Upholding our customer-centric philosophy, we will keep improving our capability in technological innovation. We will strengthen the competitive edges in our core traditional business, while continuing to expand the new business. Also, we will advance strategies and measures such as product and technological innovation, channel transformation, online improvement and internationalization. We'll adhere to our strategies despite external uncertainties. We'll also advance organizational reform to sustain the Company's healthy, high-quality development. By doing so, we aim to strengthen our presence and competitiveness in the global stationery and office supplies sector. Work hard and you will be rewarded and win in the future. We'll continue to do the tough but right things in the belief that our dedication and efforts will be rewarded. We would like to extend our heartfelt gratitude to our employees. They have been dedicated and hard working in 2023. We also want to thank our partners and continue our journey together towards a brighter future. We're thankful to our customers for their unwavering support. Your trust keeps driving our growth. Last but not least, we extend heartfelt gratitude to our shareholders. M&G is ready to work with all of you to promote sound, sustainable, high-quality development. We'll strive to create greater value for each and every shareholder. Our mission is to take responsibility and strive to create a brighter future. And we'll keep striving towards a world-class M&G! Board of Directors of Shanghai M&G Stationery Inc. 28 March 2024 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, Tang Xianbao, 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 RMB8.00 (tax inclusive) per 10 shares based on the Company's total share capital (exclusive of shares in the Company’s special securities account for repurchased shares) 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 2023 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 ...................................................................................................... 37 Section V Environmental and Social Responsibility ......................................................................... 53 Section VI Major Events ..................................................................................................................... 56 Section VII Changes in Shares and Shareholders ................................................................................. 68 Section VIII Preferred Shares ................................................................................................................ 76 Section IX Bonds ................................................................................................................................ 77 Section X Financial Report ................................................................................................................ 78
Section I Definition I. Definition In this report, unless the content requires otherwise, the following terms shall have the following
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 (I) Major accounting data
(II) Key financial indicators
Explanation of major accounting data and financial indicators for the past three years by the end of the Reporting Period √ Applicable □ Not applicable Net cash flow generated from operating activities increased primarily driven by the increased sales and cash inflows. VIII. Difference in the Accounting Information 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 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 (III) Explanation on the differences between PRC GAAP and Overseas Accounting Standards: □ Applicable √ Not applicable IX. Key Financial Data for the Year of 2023 by Quarter
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
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 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
XII. Others □ Applicable √ Not applicable Section III Management Discussion and Analysis I. Discussion and Analysis of Operation The year 2023 was the third in the Company's new, five-year strategy. Moreover, it marked a point of transition. The international environment became increasingly complex and uncertain, and the domestic market saw weak expectations and sluggish demand. In the domestic market, changing consumer preferences, buying habits and consumption scenarios, as well as the recovering market and demographic trends, brought new challenges and opportunities. In response, the Company adhered to its strategies, upheld long-term development, and promoted steady implementation of its development strategies. In terms of core traditional business, it maintained a leading position industry-wide, and advanced high-end upgrading, channel transformation and online improvement. Large retail store business saw a record high of both revenue and profit, becoming a new growth point for the Company. Direct office supplies business continued to grow rapidly, with continuously improving operating capacity. Meanwhile, the Company actively explored the international market, empowered organisation with digital tools, and kept promoting organisational upgrading and reform, with its core competitiveness further enhanced. In the Reporting Period, revenue reached RMB23.35 billion, an increase of 16.78%, and the net profit attributable to the Company’s shareholders was RMB1.52 billion, an increase of 19.05%. Operation of the Company in 2023 is reported as follows: 1. Core traditional business focused on product capability enhancement During the Reporting Period, the Company emphasized quality over quantity in product development to increase the on-shelf ratio and sales contribution of single products while improving the survival rate of new products. Moreover, the Company optimised the product structure and streamlined the category composition of existing products to increase the on-shelf ratio of must-have products and improve the capability of product categories. Being customer-centric, the Company carried out in-depth study of consumer pain points, and thus enhanced the functional design of products and kept upgrading the writing experience of consumers. The Company also promoted the combination of internal independent cultivation and collaboration with external IPs to diversify the product category. This has further boosted the Company's product capability. Mass market stationery segment. The Company developed and managed products centring on customers, so as to bring customers a full range of stationery products of reliable quality and essential functions, and kept optimising the product structure and enhancing product capability. In terms of segmented categories, the Company effectively increased its market share through "exploitation of potential" and "collaboration". By tapping the potential for marketing of classic products in different channels, the Company increased the on-shelf ratio of products. Coordination was made with online channels to tap the potential for diversifying high-quality online products and form individual best-selling products for distribution. During the Reporting Period, the Company improved the on-shelf ratio of long-selling paper products and key paper products, and the Meeboki-series products enjoyed popularity in the market. Premium stationery segment. The Company highlighted the development and cultivation of leading products. It optimised the product structure, increased the on-shelf ratio of best-selling products at key offline 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. Additionally, it developed new products for consumers in diversified scenarios and at diversified contact points and in line with the premium tonality, in order to provide consumers with more high-quality products. Arts and kids drawing segment. The Company identified different selling points of products based on consumer preferences and user experience, continued to develop high-end products and promoted the product offering of "food-grade, easy-to-clean, and anti-bacterial" high-end products. "Boron-free" clay, rice colour clay, acrylic markers were welcomed by the market. In the offline market, it focused on building special zones of arts and kids drawing products in key stationery shops, as well as refined arrangements and operations of the shops. Moreover, the Company seized market opportunities to expand professional art and educational products. Office stationery segment. The Company redoubled efforts at the development and promotion of office supplies, focused on delving into key categories and continuously developing products with high product capabilities, volume, and shop profitability, continued to expand M&G office stores and model office stores, advance channel transformation and empower services, and kept enhancing the service capabilities in order to meet the demands of professional channels. In terms of category extension, the Company seized the consumption trends and demands of target consumers, intensified the customer side's awareness of sports products and user interaction through online channels, and enhanced the presence and popularity of sports products. 2. Core traditional business continued omni-channel, and improved retail service capabilities During the Reporting Period, the Company continued to promote omni-channel development 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 new 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 on-shelf ratio of active single products. The Company improved the operational quality and sale of model stores (namely stationery stores featuring larger areas and operational quality) and single stores to enhance customer engagement, introduced more accurate and effective product configuration standards, optimised the product structure of stationery stores, further enhanced the construction of category positions based on the categories prioritised by the Company, and effectively increased the proportions of must-have and high-value products in the sales of stationery stores. To maintain the structural integrity of products, the Company sorted out the product offering that had been verified through online channels or the market, met market requirements, was sufficiently competitive and could increase the sales of stationery stores, and improved the on-shelf ratio of active single products. Improve the operational efficiency of channels with digital tools. M&G Alliance APP's role of linking the headquarters to stationery store owners was continuously leveraged to improve store engagement, with the store activity of the primary market continuing to rise. Through "JUBAOPEN", the Company followed up on the business of target products and stationery shops, thus empowering the real-time promotion decisions on business of stationery shops and enhancing their capability in "the right match between right shops and right products". Operational efficiency was constantly boosted by information-based channels and effective data. Actively promote direct model. Continued efforts were made to promote 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 core customers, and intended to set a benchmark for large stores of premium products, scale up and increase premium stationery channels through the premium direct supply model, 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. Increase online channels. The Company vigorously developed online business and worked with different segments to establish the pace, standards, and procedures for the development of online products. The efficiency was improved through "multi-store + flagship store" refined operation, and online sales were improved through the online battle map, the exploitation of product line arrangements and product capability of online categories and the expansion of categories for distribution and online channels. Additionally, the Company continued to promote Pinduoduo and Douyin, Kuaishou and other new channel businesses. During the Reporting Period, M&G Technologies' revenue was RMB857 million, representing an increase of 30% from the previous year. 3. Continue to strengthen brand presence During the Reporting Period, the Company adhered to the “consumer-centric” philosophy and delved into and communicated content, consolidated the brand reputation, and built the unique brand identity. Via products, the Company pressed ahead with brand communication and consumer interaction, and kept up with the inner world of young consumers, continuously and steadily output emotional value, thus building more profound connection and communication with users, reshaping higher-quality, "good stationery with warmth". For three consecutive years, the Company won the titles of "China Annual No.1 Stationery Brand Award" and "China's 500 Most Valuable Brands". M&G has been well recognized among consumers, is the designated stationery supplier of the Boao Forum for Asia, and once attended China International Consumer Products Expo 2023, Gifts & Home Shenzhen, Shanghai Bookfair, China Brand Day, Shanghai Good Products Exhibition, World Design Cities Conference 2023 and a number of other grand fairs, showcasing the power of Chinese stationery brands and continuously enhancing M&G's industry-wide leadership and worldwide presence. 4. Consolidate and improve the Company's middle-end and back-end platform capabilities Promote design and R&D. Adhering to the "consumer-centric" philosophy, the Company actively performed forward-looking research and design, focused on the pain points, satisfactory points, and points of posts of consumers and strengthened the functional design of products to improve the use experience of consumers, and also highlighted the capability of technological innovation and accelerating the speed of technological progress and results transformation. For example, M&G Youwo series targeted beginners, and developed pens more suitable for beginners based on the core idea of "Make it a Habit to Write Properly", and the new-generation Youwo series won the golden prize in China Stationery Innovative Design Competitive (CSID) 2023. The Company adjusted the annual plans and roll-out frequency of new products from two to four, and employed domestic and foreign design resources to improve the capability of international design and facilitate its global landscape. M&G Business System (MBS). The Company continuously promoted lean management and implemented cost reduction and efficiency enhancement. In the production segment, the Company promoted all-employee improvement, enhanced quality and efficiency on all fronts, further developed production in all directions, and continuously improved production site efficiency, quality, business flow and management capability. In the business segment, the principle of using the MBS for issue addressing and flow improvement was combined with the Company's business model to improve all employees' capability of solving problems and making improvements through the MBS thought, and a lean talent management model was developed. Coordinate supply chain. The Company proactively promoted 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 and setting a model for the industry's transformation from extensive management to refined management. During the Reporting Period, the Company won the title of "Five-star Green Factory in Shanghai". The quality assurance procedures were optimised, and the development of the supply chain quality system was refined by enhancing the quality of core supply chains. The cost-effectiveness of products was improved on an ongoing basis through lean production, optimisation of resource supply, local supply, and optimisation of raw materials. Logistics support. The Company is committed to building a logistics service system that can support multiple business models. According to requirements of different business models and diverse business scenarios, the Company provides differentiated, refined and efficient logistics service support for each business segment. The Company reasonably planned the logistics and capacity across the country to support business development, and achieved the nationwide layout and shipment covering East China, South China, and North China, significantly enhancing the operation and cost control capabilities of all warehouses. Digitalization development. The Company highlighted information-based transformation and digitalisation, and kept accelerating digital transformation and stepping up technological innovation. In line with corporate strategy, the Company built the foundation for M&G's data governance, and improved the data analysis capability for each business segment, so as to better drive business improvement by virtue of data and keep advancing digital management, data collection and integration, data analysis and decision-making support, customer experience and digital interaction in the business process. Construction of organization and talent. Organization and talents are an important basis for realizing our strategy. The Company is committed to building an active organisation (with a refined talent cultivation mechanism and enabling total improvement and self-refinement). Based on the needs of employees at different positions, the Company provided matching resources to support leader echelon building and leadership development of managers. Centring on the "striver-oriented" corporate culture and the underlying logic of "benefiting others", the Company took customer-centred, open and inclusive, sincere, focused and win-win spirits as the corporate value. Doing so helped the Company build a corporate culture with M&G's characteristics through value iteration and consolidation. 5. Large retail store business robustly developed Jiumu Store has a clear positioning in the Company’s new five-year strategy, which is to become the bridgehead for the M&G brand and product upgrading, 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&G's premium stationery products, strengthen retail capabilities, and provide timely consumer insights. During the Reporting Period, Jiumu Store saw quick recovery of its offline outlets and continuously improving operation quality, as the number of consumers at shopping malls picked up. The retail operation capacity accumulated in the past three years came into play, empowering better product mixes, more refined operations and better consumer insights and services of Jiumu Store and continuous expansion of offline channels. The creative stationery category is becoming the core category of Jiumu Store's products, and is going to undertake the role of the bridgehead for the M&G brand and product upgrading, empowering and back-feeding the headquarters' core traditional business to some extent. The sales volume in online public domains and new channels, such as Pinduoduo, Douyin, community e-commerce and WeChat applets, grew steadily, and the total online sales volume kept rising as Jiumu Store exerted more efforts （未完）  |