Shanghai M&G Stationery (603899) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached ¥6.06 billion, up 2.78% year-over-year; YTD revenue was ¥17.11 billion, up 7.91% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥388.7 million, down 20.62% year-over-year; YTD net profit was ¥1.02 billion, down 6.63% year-over-year.

• Gross margin for main product lines remained stable, with book-writing tools and other products showing higher margins.

Financial highlights

• Q3 basic EPS was ¥0.4207, down 20.64% year-over-year; YTD basic EPS was ¥1.1058, down 6.52%.

• Operating cash flow for the first nine months was ¥1.42 billion, up 5.46% year-over-year.

• Total assets at quarter-end were ¥15.46 billion, up 0.94% from year-end; equity attributable to shareholders was ¥8.60 billion, up 9.82%.

• Non-recurring gains for the first nine months totaled ¥93.26 million, mainly from government subsidies and financial product income.

Segment performance

• Book-writing tools revenue grew 8.83% year-over-year with a gross margin of 42.09%.

• Office supplies revenue increased 4.5% year-over-year; student supplies revenue was nearly flat.

• Subsidiary M&G Kolipu's revenue grew 10.07% year-over-year; M&G Life Store (including Jiumu) grew 13.11%, with Jiumu up 15.43%.

• M&G Technology revenue surged 34.19% year-over-year.