Shanghai M&G Stationery (603899) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥11.05 billion, up 10.95% year-over-year; net profit attributable to shareholders was ¥632.93 million, up 4.71% year-over-year.

• Traditional core business revenue grew 9% and new business revenue grew 12% compared to the same period last year.

• New business segments, including direct office sales and large-format retail, continued robust growth, with retail stores and digital procurement platforms expanding market share.

• The company maintained its leading position in the domestic stationery market, with nearly 70,000 retail terminals and over 700 large retail stores nationwide.

• International expansion and digital transformation were actively pursued, with overseas sales and digital procurement platforms showing strong momentum.

Financial highlights

• Operating income: ¥11.05 billion, up 10.95% year-over-year.

• Net profit attributable to shareholders: ¥632.93 million, up 4.71% year-over-year.

• Net profit excluding non-recurring items: ¥567.21 million, up 4.52% year-over-year.

• Operating cash flow: ¥733.93 million, up 8.52% year-over-year.

• Total assets at period end: ¥14.87 billion, down 2.93% from year-end 2023.

Segment performance

• Office direct sales (晨光科力普) revenue: ¥6.12 billion, up 11% year-over-year; net profit: ¥132 million.

• Large-format retail (九木杂物社+晨光生活馆) revenue: ¥728 million, up 20% year-over-year; 九木杂物社 revenue: ¥690 million, up 22% year-over-year, net profit: ¥8.97 million.

• Online business (晨光科技) revenue: ¥483 million, up 28% year-over-year.

• Overseas subsidiary Beckmann revenue: ¥104 million, with stable growth in both overseas and domestic markets.