Shanghai M&G Stationery (603899) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 25.06 billion in 2025, up 3.45% year-over-year; net profit attributable to shareholders was RMB 1.31 billion, down 6.12% year-over-year.

• Maintained resilient growth amid external uncertainties, focusing on product innovation, digital transformation, and channel expansion.

• Continued to strengthen core business and expand new retail and digital procurement services.

Financial highlights

• Revenue: RMB 25.06 billion (+3.45% YoY); net profit attributable to shareholders: RMB 1.31 billion (-6.12% YoY); total assets: RMB 18.07 billion (+8.97% YoY).

• Operating cash flow: RMB 2.28 billion (-0.32% YoY); basic EPS: RMB 1.4306 (-5.65% YoY); gross margin for core products improved slightly.

• Proposed cash dividend of RMB 10 per 10 shares, with a payout ratio of 70% of net profit.

Outlook and guidance

• 2026 revenue target set at RMB 27.8 billion (+11% YoY), focusing on product innovation, channel deepening, and international expansion.

• Plans to accelerate digital transformation, enhance supply chain resilience, and expand new retail and procurement businesses.

• Subsidiary Keli Pu Group to pursue a separate listing in Hong Kong to optimize capital allocation.