Shanghai M&G Stationery (603899) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 5.24 billion, down 4.39% year-over-year; net profit attributable to shareholders fell 16.23% to RMB 318 million.

• Gross margin and profitability declined, with EPS at RMB 0.3472, down 15.56% year-over-year.

• Cash flow from operations improved 64.37% year-over-year, reaching RMB 112 million.

Financial highlights

• Total assets at quarter-end were RMB 15.82 billion, down 4.63% from year-end 2024.

• Shareholders' equity increased 3.18% to RMB 9.19 billion.

• Net profit excluding non-recurring items was RMB 281 million, down 14.16% year-over-year.

• Non-recurring gains included government subsidies and investment income totaling RMB 36.92 million.

• Cash and cash equivalents at quarter-end were RMB 3.66 billion.

Segment performance

• Bookwriting tools revenue was RMB 564 million, flat year-over-year; gross margin 43.78%.

• Student stationery revenue was RMB 803 million, down 5.99% year-over-year; gross margin 35.63%.

• Office stationery revenue was RMB 849 million, down 5.60% year-over-year; gross margin 28.48%.

• Direct office sales revenue was RMB 2.79 billion, down 5.32% year-over-year; gross margin 7.08%.

• Subsidiary M&G Life Store (including Jiumu) revenue grew 8.03% to RMB 401 million; M&G Technology revenue rose 24.57% to RMB 308 million.