Shanghai M&G Stationery (603899) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 11.32 billion, up 4.73% year-over-year; net profit attributable to shareholders was RMB 586 million, up 5.13% year-over-year.

• Traditional core business remained stable, while new business revenue grew 7% year-over-year, driven by digital procurement and retail expansion.

• Gross margin was 19.61%, with a slight year-over-year increase; operating cash flow decreased 29.64% due to higher inventory and receivables.

• The company maintained its leading position in the domestic stationery market, with nearly 70,000 retail terminals and strong brand recognition.

Financial highlights

• Operating income: RMB 11.32 billion (+4.73% YoY); net profit: RMB 586 million (+5.13% YoY).

• Gross profit: RMB 2.22 billion; gross margin: 19.61%.

• Operating cash flow: RMB 460 million (-29.64% YoY); total assets: RMB 16.63 billion (-7.99% from year-end 2025).

• Basic and diluted EPS: RMB 0.6396 (+5.16% YoY); ROE: 6.21%.

• Non-recurring gains: RMB 124 million, mainly from government subsidies and investment returns.

Outlook and guidance

• The company aims to strengthen its core business, accelerate digital transformation, and expand international markets.

• Focus on product innovation, channel upgrades, and sustainable development to drive long-term growth.

• Plans to maintain stable dividend policy, with a minimum annual cash dividend ratio raised to 30% for 2026-2028.