Annual Report 2025
Stock Code: 603899 Short Name: M&G Corporation
SHANGHAI M&G STATIONERY INC.Annual Report 2025
1 / 233Annual Report 2025
Rising to Challenges Thriving with Resilience
Letter to Shareholders
In 2025 the world moved forward amid change and challenges. Uncertainty in the
external environment has imposed higher requirements on corporate operations yet the
fundamental conditions and long-term trends for growth remain intact. Under the
leadership of the Board we keep steady while exploring innovation rise to external change
with clear strategy and stive to stay resilient and focused. All M&G people rise to
challenges head-on. We hone our skills under pressure and seek opportunities in change.We ground ourselves firmly while reaching high. Through our actions we have
demonstrated what true resilient growth looks like.This year we recorded revenue of RMB25064 million an increase of 3.45% and the
net profit attributable to our shareholders reached RMB1310 million. Our business
remained stable and healthy.This year we responded to expectations with innovation. Centered on consumers we
made product strength the engine of high-quality growth. By enhancing both functional and
emotional value we achieved significant results in R&D technology application and IP
integration. We rolled out a series of standout products including the on-off pen meeboki
Da Fu Da Gui and San Hao backpack winning both praise and market success.This year we connected people to cultural creativity. As the bridgehead for brand
upgrade our independent brand Jiumu Store now has more than 860 stores nationwide
and over 10 million members. It creates accessible spaces for cultural creativity and brings
tangible joy to more consumers.This year we build excellence through digital intelligence. As a leading provider of
general office supplies procurement and digital supply chain services in China Colipu
Group has become a pioneer in digital corporate procurement and an industry leader with
revenue surpassing RMB15000 million.This year we strengthened our foundation for the future. We continued to implement
the MBS management system continuously improving operational efficiency and
organizational resilience in technology products production logistics and sales. Through
enhanced quality and efficiency and refined operations we continued to create value for
our shareholders.This year we launched the special initiative themed “Enhance Quality and Efficiency
2 / 233Annual Report 2025and Strengthen Shareholder Return” and continued to reinforce shareholder value. Guided
by a scientific consistent and steady dividend policy we increased the cash dividend
payout ratio while taking into account our current development stage and long-term capital
needs. In February 2025 we completed our second share repurchase since listing and in
June 2025 re-purposed and retired shares from the first repurchase. These proactive actions
have protected the Company’s value and safeguarded the overall and long-term interests of
our shareholders.Persistence and innovation give us the strength to navigate cyclical ups and downs.Our faith in long-termism drives us forward with steady confident steps.The stage is set for 2026. The road ahead is full of challenges yet also holds vast
opportunities. We will make resilience our guiding principle combining careful judgmentwith bold action. We will adhere to long-termism “dig 10000 meters deep from a
1-meter-wide opening” and thrive by helping our partners thrive.
Building on the “Enhance Quality and Efficiency and Strengthen Shareholder Return”
initiative we will focus on our core traditional business continue to enhance products
brands and our reach across channels (including both online and offline channels and both
at home and abroad). Step by step we will solidify our foundation and expand our
competitive edges. In terms of our large retail stores we will continue to grow our store
network and membership base. These stores should aim not only to serve as the bridgehead
for upgrading the M&G brand and products but also to carve out our own space in the
cultural creativity market. As for our general materials digital procurement service business
Colipu Group is set to embark on a new journey with a planned spin-off listing on the Hong
Kong Stock Exchange. Leveraging the capital market’s role in optimizing resource
allocation we will strengthen our business landscape to drive high-quality sustainable
development.We are deeply grateful to our hardworking employees loyal partners and supportive
shareholders. M&G people will keep moving forward with a pragmatic mindset an
innovative spirit and resilient determination. Every step will be taken with care every
commitment honored as we create long-term value and boldly advance toward a
world-class M&G!
Board of Directors of Shanghai M&G Stationery Inc.March 30 2026
3 / 233Annual Report 2025
Important Notice
I. The Board of Directors directors and senior management of the Company warrant that the
contents of this report are true accurate and complete without any misrepresentation misleading
statements or material omissions and severally and jointly bear the legal responsibilities thereof.II. All directors of the Company attended the Board meeting.III. BDO China Shu Lun Pan CPAs (LLP) has issued the audit report with unqualified opinions to
the Company.IV. Chen Huwen the chairman of the Company Liu Jiaqi CFO of the Company and Zhai Yu the
head of the accounting department (person in charge of accounting) warrant the truthfulness
accuracy and completeness of the financial report in this annual report.V. Profit distribution plan or plan to convert surplus reserves into share capital approved by the
Board of Directors during the Reporting Period
The Company proposes to distribute cash dividend of RMB10 (tax inclusive) per 10 shares based
on the Company’s total share capital (exclusive of shares in the Company’s special securities account for
repurchased shares) registered as at the registration date for the implementation of dividend distribution.The profit distribution plan is subject to being submitted to the Company’s 2025 Annual Meeting of
Shareholders for deliberation.Indicate whether the parent company had unrecovered losses as of the end of the Reporting
Period and the impact on the Company’s dividends and other matters.□ Applicable √ Not applicable
VI. Risks statement of the forward-looking statements
√ Applicable □ Not applicable
Forward-looking statements including future plans and development strategies involved in this
annual report do not constitute the Company’s substantive commitments to investors. The investors are
advised to pay attention to investment risks.VII. Is there any non-operating misappropriation of funds of the Company by any controlling
shareholders and their related parties
No
VIII. Has the Company provided any external guarantees in violation of the decision-making
procedures
No
IX. Are there more than half of the directors who cannot warrant the truthfulness accuracy and
completeness of the annual report disclosed by the Company
No
4 / 233Annual Report 2025
X. Warning on significant risks
The Company has illustrated various risks and corresponding measures that the Company might
face in the production and operation. Please refer to the “Potential Challenges and Risks” set out in
“Section III Management Discussion and Analysis”. Investors are advised to pay attention to risk of
investment.XI. Others
□ Applicable √ Not applicable
本报告分别以中、英文编制，在对中外文文本的理解上发生歧义时，以中文文本为准。
This English version is converted from the Chinese version.In case of any discrepancy between the Chinese version and the English version the
Chinese version shall prevail.
5 / 233Annual Report 2025
Contents
Section I Definition ................................ 7
Section II Company Profile and Key Financial Indic... 8
Section III Management Discussion and Analysis ..... 13
Section IV Governance Environmental and Social Inf.. 45
Section V Major Events ............................. 61
Section VI Changes in Shares and Shareholders ...... 70
Section VII Bonds .................................. 77
Section VIII Financial Report ...................... 78
Financial statements signed and sealed by the legal representative the person in
charge of accounting work and the person in charge of the accounting agency.Original of the auditor’s report with the seal of the accounting firm and the
References
signature and seal of the certified public accountant.Originals of all company documents and announcements publicly disclosed on the
designated information disclosure media by CSRC during the Reporting Period.
6 / 233Annual Report 2025
Section I Definition
I. Definition
In this report unless the content requires otherwise the following terms shall have the following
meanings:
Definition of common terms
The Report Refers to Annual Report 2025
Company the Company M&G
Refers to SHANGHAI M&G STATIONERY INC.Stationery M&G Corporation
M&G Group Refers to M&G Holdings (Group) Co. Ltd.Colipu Technologies Group Co. Ltd. （科力普科技集团股份Colipu Group（科力普集团） Refers to有限公司）M&G Life Enterprise Management Co. Ltd.（晨光生活馆企M&G Life（晨光生活馆） Refers to业管理有限公司）/Large retail store of the CompanyShanghai Colipu Information Technology Co. Ltd（. 上海科力Colipu Information Technology Refers to普信息科技有限公司）Shanghai M&G Information Technology Co. Ltd.（上海晨光M&G Technologies Refers to信息科技有限公司）
Jiekui Investment Refers to Shanghai Jiekui Investment Management Firm (L.P.)
Keying Investment Refers to Shanghai Keying Investment Management Office (L.P.)Jiumu M&G Store Enterprise Management Co. Ltd.（九木杂Jiumu Store（九木杂物社） Refers to物社企业管理有限公司）/Large retail store of the Company
M&G Office Stationery（晨光办公） Refers to Shanghai M&G Office Stationery Co. Ltd.Axus Stationery Refers to Axus Stationery (Shanghai) Company Ltd.Back to School Holding AS a Norwegian subsidiary that is
Beckmann Refers to
principally engaged in schoolbagsShanghai Qizhihaowan Culture and Creativity Co. Ltd.（上海Qizhihaowan（奇只好玩） Refers to奇只好玩文化创意有限公司）
Jiangsu Marco（江苏马可） Refers to Jiangsu Marco Pen Co. Ltd.（江苏马可笔业有限公司）
Maintenance repair and operation i.e. industrial consumables
MRO Refers to required by an industrial enterprise to ensure normal
production except raw materials
Key Account usually referring to large cross-regional retailers
KA Refers to with large operating space and dense customer flow including
RT-MART Walmart and Carrefour.The designing developing manufacturing and selling writing
instruments student stationery office supplies and other
Core traditional business Refers to
products under M&G brands and also the e-commerce
business M&G Technologies
General materials digital procurement service business and
New business Refers to
large retail store business
Reporting period Refers to Year 2025 from January 1 2025 to December 31 2025
Yuan ten thousand Yuan hundred
Refers to RMB RMB10000 RMB100 million
million Yuan
7 / 233Annual Report 2025
Section II Company Profile and Key Financial Indicators
I. Company Information
Chinese name of the Company 上海晨光文具股份有限公司
Short name of the Company in Chinese 晨光股份
English name of the Company SHANGHAI M&G STATIONERY INC.Abbreviation of English name of the Company M&G
Legal representative of the Company Chen Huwen
II. Contact Information
Board Secretary Securities Affairs Representative
Name Bai Kai
No.5 Lane 288 Qianfan Road Xinqiao
Office address
Town Songjiang District Shanghai
Telephone 021-57475621
Fax 021-57475621
E-mail ir@mg-pen.com
III. Introduction to General Information
Registered address Building 3 No. 3469 Jinqian Road Fengxian District Shanghai
Historical change of the Company’s
No
registered address
No.5 Lane 288 Qianfan Road Xinqiao Town Songjiang
Office address
District Shanghai
Postal code of office address 201612
Website of the Company http://www.mg-pen.com
E-mail ir@mg-pen.com
IV. Information Disclosure and Place for Obtaining the Report
Shanghai Securities News China Securities Journal
Media for the Company’s information disclosure
Securities Daily Securities Times
CSRC’s designated website for the Company’s
www.sse.com.cn
Annual Report disclosure
The Company’s Annual Report may be obtained at Board of Directors’ Office
V. Stock Information
Stock Information
Exchanges on which Stock short name
Share class Stock short name Stock code
the stocks are listed before change
Shanghai Stock
A share M&G Corporation 603899 M&G Stationery
Exchange
VI. Other Relevant Information
Name BDO China Shu Lun Pan CPAs (LLP)
Auditor of the Company Office address 4F No. 61 Nanjing East Road Shanghai
(domestic) Name of the signing
Chen Luying Yuan Yang
accountant
8 / 233Annual Report 2025
VII. Major Accounting Data and Financial Indicators for the Past Three Years
(I) Major accounting data
Unit: Yuan Currency: RMB
Year-on-
year
Major accounting data 2025 2024 2023
change
(%)
Revenue 25063909836.47 24228248698.65 3.45 23351304328.03
Total profits 1708704232.97 1821257986.53 -6.18 1979472772.78
Net profit attributable
to shareholders of the 1310448991.96 1395844392.50 -6.12 1526801727.16
listed companies
Net profit attributable
to shareholders of the
listed companies net of 1123919630.87 1233936105.87 -8.92 1398219856.97
non-recurring gains and
losses
Net cash flow
generated from 2282072468.65 2289340796.79 -0.32 2616600617.09
operating activities
Year-on-
year
End of 2025 End of 2024 End of 2023
change
(%)
Net assets attributable
to shareholders of the 9287670689.65 8909859173.13 4.24 7833178803.52
listed companies
Total assets 18074966731.15 16586785179.43 8.97 15313962312.00
(II) Key financial indicators
Year-on-year
Key financial indicators 2025 2024 2023
change (%)
Basic earnings per share
1.43061.5162-5.651.6577
(Yuan/share)
Diluted earnings per share
1.43061.5162-5.651.6577
(Yuan/share)
Basic earnings per share net of
non-recurring gains and losses 1.2270 1.3404 -8.46 1.5181
(Yuan/share)
Decrease by
Weighted average ROE (%) 14.56 16.64 2.08 percentage 20.97
points
Decrease by
Weighted average ROE net of
12.48 14.71 2.23 percentage 19.20
non-recurring gains and losses (%)
points
Explanation of major accounting data and financial indicators for the past three years by the end of the
Reporting Period
□ Applicable √ Not applicable
9 / 233Annual Report 2025
VIII. Difference in the Accounting Information under the PRC Accounting Standards for Business
Enterprise (“PRC GAAP”) and Overseas Accounting Standards
(I) Difference in net profit and net asset attributable to shareholders of the listed company in
financial reports disclosed under International Accounting Standards and PRC GAAP
□ Applicable √ Not applicable
(II) Differences in net profit and net assets attributable to shareholders of the listed company in
financial reports disclosed under International Accounting Standards and PRC GAAP
□ Applicable √ Not applicable
(III) Explanation on the differences between PRC GAAP and Overseas Accounting Standards:
□ Applicable √ Not applicable
IX. Key Financial Data for the Year of 2025 by Quarter
Unit: Yuan Currency: RMB
4th Quarter
1st Quarter 2nd Quarter 3rd Quarter
(October -
(January - March) (April - June) (July - September)
December)
Revenue 5244822850.50 5563956883.73 6519079058.51 7736051043.73
Net profit
attributable to
shareholders of 318201988.44 238977253.84 391123106.00 362146643.68
the listed
companies
Net profit
attributable to
shareholders of
the listed company 281286321.74 180269262.55 340645119.25 321718927.33
after deducting
non-recurring
profit or loss
Net cash flow
generated from
112010716.73542057218.18732298018.45895706515.29
operating
activities
Explanation on difference between information by quarter and information disclosed in periodical
reports
□ Applicable √ Not applicable
X. Items and Amounts of Non-recurring Gains or Losses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Items of Non-recurring Gains Amounts in Amounts in Amounts in
Notes (if applicable)
or Losses 2025 2024 2023
During the Reporting
Period the Company
made additional
Gains or losses on disposal of
investments in an
non-current assets (inclusive
4652094.85 equity investee which -10284.89 4135364.06
of impairment allowance
constituted a business
write-offs)
combination not under
common control.Gains were generated
10 / 233Annual Report 2025
from the
remeasurement of the
formerly held equity
interests at fair value
before the acquisition
date.Government subsidies
included in profits and losses
for the current period
Mainly including
excluding those that are
government subsidies
closely related to the
received during the
Company’s normal business
186963410.61 Reporting Period and 156328395.64 148088250.88
operations and given in
government subsidies
accordance with defined
transferred from
criteria and in compliance with
deferred income
government policies and have
a continuing impact on the
Company’s profits or losses
Gains or losses on fair-value
changes in financial assets and
liabilities held by a
Mainly due to the
non-financial enterprise as
revenue generated
well as on disposal of financial
59958649.02 from purchase of 57959220.58 28908931.81
assets and liabilities (exclusive
wealth management
of the effective portion of
products
hedges that is related to the
Company’s normal business
operations)
Provision reversal of
Reversal of provision for
bad debts on
impairment of receivables
2298338.54 individual receivables 1638145.92 3232256.86
which are individually tested
during the Reporting
for impairment.Period
Other net non-operating Mainly due to the
income and expenses other -11760712.53 donations made for 12141547.09 -2669713.78
than the above items public welfare
Minus: Effect of income tax 41525443.98 46319092.93 33479316.16
Effect of minority
14056975.4219829644.7819633903.48
equity (after tax)
Total 186529361.09 161908286.63 128581870.19
Items unlisted in the Explanatory Announcement on Information Disclosure by Companies Offering
Securities to the Public No. 1: Non-Recurring Profits and Losses are identified as non-recurring profit
and loss items and the items are of a significant amount and non-recurring profit and loss items listed in
the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the
Public No. 1: Non-Recurring Profits and Losses are defined as recurring profits and losses
□ Applicable √ Not applicable
XI. Companies with equity incentive plans or employee stock ownership plans may choose to
disclose net profit net of the impact of share-based payments.□ Applicable √ Not applicable
XII. Items Measured at Fair Values
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
11 / 233Annual Report 2025
Changes in the Effect on profit for
Items Opening balance Closing balance
Period the Period
Held-for-trading
2569112993.224108620317.141539507323.9258155252.93
financial assets
Receivables
28475371.6431211919.982736548.34
financing
Investments in other
10579958.3410817798.40237840.06
equity instruments
Derivative financial
46320.0846320.08
liabilities
Total 2608168323.20 4150696355.60 1542528032.40 58155252.93
XIII. Others
□ Applicable √ Not applicable
12 / 233Annual Report 2025
Section III Management Discussion and Analysis
I. The Company’s Businesses during the Reporting Period
1. Principal business
M&G Stationery is a comprehensive stationery supplier and an office servicer. The Company
integrates the value of creativity into its products and service advantages advocates fashionable
stationery lifestyle and provides solutions for study and work. Its core traditional businesses include
designing developing manufacturing and selling writing instruments student stationery office supplies
and other products under brands and also the e-commerce business M&G Technologies;
its new businesses mainly comprise of general materials digital procurement service business – Colipu
Group and large retail store business - Jiumu Store and M&G Life. During the Reporting Period there
were no significant changes in the Company’s operation model.
2. Principal operation model
The Company has an independent and complete operation from design and development of brands
and products procurement of raw materials and accessories product manufacturing supply chain
management and warehouse and logistics to distribution network management. The Company is capable
of performing independent operation of business in the market. For R&D model the Company has an
“entire design system” covering the whole process starting from customer value proposition to product
design product mold to brand image design incorporating trend- theme and experience-oriented R&D
model to develop new products with a comprehensive categories approach based on consumer insight.For manufacturing model the Company uses the brand manufacturing model that features sales-driven
production in-house and OEM outsourcing. The Company has an independent system from raw material
procurement to manufacturing and selling and has established its brands in the market. We have the
advantages from participating in the whole value chain from design research and developing
manufacturing and selling stationery. For sales model based on features of stationery products and
current situations of stationery consumption at home and abroad the Company has developed its sales
model that relies on regional distributors complemented by direct sales to offices 2B customers
direct-sale store KA sales online sales as well as international distribution. We are the one of leading
companies in China’s stationery business that engage in large-scale brand sales management and
franchise management. In addition to operations on platforms such as Tmall JD and Pinduoduo M&G
Technologies also conducts live streaming on platforms such as Douyin and Kuaishou through its own
live streaming room or cooperation with KOLs on the platforms. M&G Technologies is also responsible
for online full platform marketing and management of authorized online stores.M&G large retail store businesses include two store types: Jiumu Store and M&G Life. Targeting
female consumers aged 15-29 Jiumu Store primarily sells stationery cultural and recreative products
educational and entertainment products and daily household and home products. Jiumu Stores are
mostly located in high-quality shopping malls in prime urban districts. Jiumu Store represents the
Company’s ongoing exploration in new retail model in lifestyle products with a distinct cultural element.Jiumu Store started franchising in July 2018 where franchisees pay contract deposit and decoration fee
according to contracts and store rent store staff salary utilities and other costs incurred in franchising
stores. M&G Life mainly targets students aged 8-15 primarily selling stationery products. M&G Life
stores are mostly located in Xinhua Bookstore and compound bookstores. M&G Life represents the
Company’s efforts to move beyond the dominant traditional channels of retail stationery shops nearby
schools.Colipu Group provides cost-effective one-stop supplies procurement service for a diverse range of
customers including central SOE groups financial institutions government agencies Global 500
companies as well as top 500 SOEs and private enterprises in China. Colipu Group has a rich product
offering with application scenarios covering one-stop office supplies MRO industrial products
marketing gifts and employee benefits which include more than one million product categories such as
office paper office stationery office supplies office equipment computers and accessories digital and
communications office appliances daily necessities business gifts food and beverages office furniture
labor protection supplies and industrial supplies. By shortening the supply chain it provides customers
13 / 233Annual Report 2025
with cost-effective digital procurement solutions for various scenarios and customized value-added
services.With changing demographics of China in particular the decreasing birth rate it becomes
increasingly difficult to achieve revenue growth from unit volume growth in the future and stationery
industry growth is increasingly driven by consumption upgrade and product upgrade. The Company’s
core traditional businesses are challenged with demands from more individualized population born after
2000 and 2010. Stationery consumption in China is becoming more brand conscious innovative
individualized and more premium. There is a clear growth in demand for better cultural and creative
products which accelerates industry transformation towards one with more cultural and creative
elements. M&G Technologies reflects channel diversification trend and helps the Company’s
omni-channel strategy by expansion of online business. Jiumu Store serves as the Company’s
bridgehead to continue products and channels upgrading of its core traditional business and it plays an
important role in promoting the Company’s brands and products upgrade. Colipu Group meets the
purchasing demands for office supplies of corporations and institutions which helps boost the sales of
writing instruments and office stationery in the Company’s core traditional business.
3. Major driver for revenue growth
Driven by policy
The continuous investment of the state in education the three-child policy the increased childcare
subsidies and fee reductions as well as a favorable policy context for the development of the cultural
industry encourage and promote the integrated development of the cultural industry and upstream and
downstream industries invigorate economic transformation and social development and drive the
steady development of the stationery industry. A series of national policies on the centralized
procurement industry have been promulgated rapid progress was made in centralized procurement of
large- and medium-sized enterprises the transparency of procurement information and the competitive
mechanism of centralized procurement promoted the concentration of office supplies industry and
promoted the vigorous development of direct office supplies industry.Driven by market forceWith the changes in the way of life and consumption habit of consumers the mix of “peopleproduct and place” in retail industry has been reconstructed sales channels have become more
diversified and channel upgrades and channel competition have become increasingly fierce. As the
domestic market demand for mid- to high-end stationery products keeps increasing this provides
opportunities for mid- to high-end stationery products. China’s population of 1.4 billion accounts for
about 18% of global population while leading stationery companies in China can continue to mostly
rely on the huge domestic market they also have room for international expansion in international
markets which could reinforce each other under favorable conditions.Driven by industry integration
With continued development in the market market concentration of stationery industry becomes
greater leaving more room for industry consolidation. Leading companies in the stationery industry with
good brand recognition are in a strong position and more market share is gained by leading companies.Through mergers and acquisitions of high-quality targets at home and abroad the Company further
enhanced its competitiveness and brand power in segmented categories.Driven by innovation
Innovation as one of driving forces for continuous development with a focusing on consumers. The
Company continued to promote technological innovation product innovation channel innovation and
business model innovation. Through product innovation and business model innovation the Company
has formed a pattern of coordinated development high-quality development and sustainable
development of multi-business model. Meanwhile it actively promoted the high-end digital intelligent
and green transformation in its business operations and coordinated the upgrading of traditional
businesses the growth of emerging businesses and the cultivation of future businesses.Driven by the Company’s competitive advantages
With professional teams market insights unique brand advantages channel advantages supply
chain advantages R&D and design advantages the Company continued to promote technological
innovation and product innovation and maintained a strong forward driving force through high-end
omni-channel digitalization lean production and dynamic organization.New important non-principal business during the Reporting Period
14 / 233Annual Report 2025
□ Applicable √ Not applicable
II. Industry Situation of the Company during the Reporting Period
1. Industry situation of the Company
According to Industrial Classification and Codes for National Economic Activities (GB/T
4754-2017) issued by the National Bureau of Statistics the Company is classified to stationery arts
sports and entertainment products industry in the manufacturing sector. The Company is a member of
China Stationery & Sporting Goods Association and China Writing Instrument Association.In 2025 China’s sports and stationery goods industry generally maintained stable operations
against the backdrop of an increasingly complex external environment and a slower pace of recovery in
domestic demand. The industry’s resilience further emerged but structural contradictions such as
pressure on profits homogenized product competition and fluctuations in external demand remained
prominent. The Executive Meeting of the State Council emphasized the need to strengthen the domestic
economic cycle and promote the continued release of domestic demand potential providing policy
guidance for the industry to tap incremental opportunities in cultural consumption health consumption
and education consumption.China encourages art education and quality education for students deepens the integration of sports
and education and promotes the healthy development of teenagers. The Ministry of Education has
launched the Aesthetic Education Infiltration Action in schools which brings about new development
opportunities for painting and calligraphy supplies educational books cultural and creative student
supplies and digital and intelligent stationery. Five departments including the Ministry of Education
jointly issued the Opinion on Implementing the Student Physical Fitness Improvement Plan. Coupled
with the policy orientation of integrating sports and education as well as the development of campus
sports this has created new market space for teenagers’ sports equipment and training aids tailored to
campus physical exercise scenarios.According to the China Public Procurement Development Report (2024) compiled and released by
China Federation of Logistics & Purchasing the scale of public procurement transactions in China in
2024 amounted to RMB45 trillion. With the accelerated development of China’s unified public resource
trading platforms the market for public resource transactions has been increasing centralization in
trading regulation and data management. In the broader context of the digital economy digitalization
e-commerce and centralized procurement have become the main forms of public resource transactions
from central to local governments. These practices began with transparent procurement by government
agencies central and state-owned enterprises (“SOEs”) and financial institutions are gradually
extending to large private enterprises and local SOEs. The government continues to strengthen its
commitment to green procurement expanding both the scope and scale of green product purchasing and
is incorporating carbon footprint requirements into government procurement criteria in a timely manner.
2. Industry features
(1) Periodicity
Writing instruments student stationery and office supplies are less affected by economic
fluctuations. With low unit price writing instruments and student stationery are more of necessity goods
with relatively low income elasticity relatively less sensitive to economic fluctuations.
(2) Seasonality
There is seasonality in the demand for student stationery. Months before a new semester (summer
and winter vacation) is what the stationery industry calls “schooling peak season” during which sales of
student stationery usually peaks. Students and their parents will buy a lot of stationery in advance and
stationery manufacturers promote their products.
3. Development trend of the industry
With the changes in the way of life and consumption habit of consumers China’s retail industry
entered a new stage of redevelopment and innovation. Stationery industry faces challenges with
uncertainty of external environment diversification of retail channels and more individualized demands
from main customers group (now being the post-00s and post-10s). With the changing demographics of
China in particular the decreasing birth rate stationery industry revenue growth comes less from by unit
volume growth and more from consumption upgrade and product upgrade. Domestic consumption for
stationery in China becomes more brand conscious innovative IP-oriented individualized and more
15 / 233Annual Report 2025
premium. There is a growing demand for premium cultural and creative products driving the industry to
transform from functional satisfaction to value consumption. Demand for mid-to-high-end products that
combine aesthetic design cultural connotations and quality has continued to rise providing broad
opportunities for high-quality enterprises that emphasize the integrated capabilities of R&D design
branding and supply chain management.Sales channels for stationery in the domestic market are continuously expanding and improving.Traditional retail stationery shops nearby school are still the dominant channel for China’s stationery
industry and shares of other retail formats are increasing faster. Sales terminals and channels of the
industry are becoming more diversified upgrading and competition in channels becomes more obvious.With the popularity of the Internet smart phones and online transactions people’s consumption habits
and consumption scenarios have changed. New-generation marketing means are becoming more
diversified including online media platforms (such as Weibo WeChat Xiaohongshu and Douyin) and
IP topic creation which further tests enterprises’ ability to make quick response to industry trends.Compared with small- and medium-sized enterprises leading enterprises boast stronger and richer whole
network marketing and operation capabilities. They formulate refined marketing strategies by city to
reach consumers. In addition to online traffic offline channels are also required to realize refined
management by empowering channels through organizational reform and information system.According to the National Bureau of Statistics online retail sales across the country recorded RMB15.9
trillion in 2025 an increase of 8.6%. Outstanding companies in the consumer industry seized the
development opportunities of online consumption and achieved continuous sales growth through online
and offline integration.The new generation of young people has become a major force in driving new consumption. The
consumption concepts of the youth group are changing shifting from material fulfillment to emotional
resonance and from standardized supply to personalized customizationfrom. With the shift from a focus
on the practicality of goods to an increasing emphasis on the emotional value of consumption they are
more eager to achieve emotional resonance and psychological satisfaction through their purchases.Emotional value has evolved from an added consumption benefit into a core factor influencing
consumption decisions among contemporary young consumers who seek more than just emotional
value and cultural connection from IP collaborations but also see consumption as a way to express their
identity and engage with communities built around shared interests. They value the sense of joy
belonging and companionship that products bring. What they purchase is not just stationery but a
vehicle for emotion and self-expression. ACGN and cultural and creative merchandise have already
broken through traditional boundaries reflecting youth consumers’ recognition of excellent cultural
works such as animation and comics. This trend reflects a shift in consumption demand from
“pragmatism” to “emotional value”.With continued development in the stationery industry there could be higher industry consolidation
and leading companies could gain larger market shares. China’s population of 1.4 billion accounts for
about 18% of global population while leading stationery companies in China can continue to mostly
rely on the huge domestic market they also have room for international expansion in international
markets which could reinforce each other under favorable conditions. The global influence of Chinese
culture continues to rise. Not only do domestic consumers seek emotional resonance by purchasing
“Chinese trend” products but overseas consumers are also beginning to embrace Chinese elements
showing a positive outlook on Chinese goods.In the broader context of the digital economy China’s public procurement sector has made
significant progress in digitalization e-commerce and centralized procurement driven by favorable
factors such as supportive policies the rapid expansion of centralized procurement by large- and
medium-sized enterprises and increased competition among various digital procurement service
providers.These forms of procurement have become the main form of public resource transactions from
central to local governments. According to the 2025 Smart Procurement Supply Chain Development
Report released by the China Federation of Logistics & Purchasing the total procurement amount for
enterprises reached RMB188.3 trillion in 2024 an increase of 7.3%. Among this the total amount of
digitalized procurement accounted for RMB21.7 trillion an increase of 16.2% with a penetration rate of
11.5% up by 0.9% from 2023. According to Ebrun Think Tank analysis the growth in digital
procurement penetration is driven by two key factors. First continued policy support: governments at all
levels have introduced targeted digital transformation initiatives that provide clear guidance and
financial incentives for adopting digital procurement. Second technological advancement: the deeper
application of big data and AI not only streamlines procurement processes but also significantly
16 / 233Annual Report 2025
improves efficiency through features such as intelligent matching and automated approvals. As supply
chain digitalization accelerates digital procurement is expected to play an increasingly important role in
helping enterprises reduce costs and improve operational efficiency. More than 70 central enterprises
have established online stores with a clear trend of product diversification. In addition to office supplies
and industrial products these procurement e-commerce platforms are expanding into production
materials and engineering equipment.With the further development and application of information technology data have become a new
production element. Recommendations of the Central Committee of the Communist Party of China for
Formulating the 15th Five-Year Plan for National Economic and Social Development call for upgrading
and optimizing traditional industries advancing the quality and transformation of key sectors promoting
technological upgrading and accelerating the digital and intelligent transformation of manufacturing. It
also emphasizes the development of intelligent manufacturing green manufacturing and service-oriented
manufacturing while speeding up changes in industrial models and corporate organizational structures.The investment in the manufacturing industry has shifted from the investment in equipment and
assembly lines to the transformation of digital processes and digital transformation of products in a bid
to apply digital technology to reduce channel costs and management costs and become a digital-driven
modern enterprise.The future of stationery products will be shaped by personalization smart functionality and
sustainability. As the new generation of consumers expresses stronger individuality and more diverse
needs personalized stationery is gaining increasing popularity. At the same time advances in technology
are bringing intelligent features deeper into learning and office scenarios. Intelligent stationery enables
users to complete tasks more efficiently while offering support for learning and personalized guidance.Influenced by national policies and a shifting social landscape consumers are also paying closer
attention to product safety environmental impact and sustainability. As a result green environmental
and sustainable development has become a key direction for the future of the stationery industry.
4. Company position in the industry
As a leader of “own brand + domestic demand” in China’s stationery industry the Company has a
strong first-mover and leading advantage with a wide and deep distribution network coverage in China’s
stationery market. At the end of the Reporting Period the Company has a national distribution network
covering approximately 70000 retail stationery shops using the store sign “M&G Stationery” across
China enabling the Company to establish market leading position for its own brand products amidstcompetitions. The Company ranked first in “Top Ten Enterprises in China’s Light Industry and WritingInstrument” for 13 consecutive years.Colipu Group is a benchmark enterprise in general materials digital procurement service in China.With 13 years of dedicated development and leveraging its electronic transaction system intelligent
warehousing and logistics management system high-quality supply chain management and customized
service Colipu Group has become a pioneer and industry leader in enterprise digital procurement. Over
the years Colipu Group has won many awards such as the Outstanding E-commerce Platform in China’s
Stationery and Office Supplies Industry the Outstanding Supplier of Government Procurement and the
Most Influential E-commerce Platform in Financial Procurement.III. Discussion and Analysis of Operation
In 2025 amid a complex external environment the Company adhered to long-termism and
maintained strategic resolve and operational resilience. In response to evolving consumer preferences
buying habits and consumption scenarios it focused on product development technological innovation
original design IP empowerment green development digitalization and globalization. The Company
fully implemented measures to enhance quality and efficiency accelerated the fostering of new quality
productive forces steadily advanced the development of its core traditional business and continued to
develop new business. It continuously enhanced organizational efficiency and execution capacity further
strengthening its overall competitiveness.In the Reporting Period the Company recorded revenue of RMB25064 million an increase of
3.45% and a net profit attributable to its shareholders of RMB1310 million a decrease of 6.12%.
Operation of the Company in 2025 is reported as follows:
1. Core traditional business focused on product capability enhancement to meet diversified
17 / 233Annual Report 2025
consumer needs
During the Reporting Period the Company adhered to consumer-centric innovation-driven
development. Through product innovation driven by consumer insights and promotion innovation that
resonated more closely with users’ inner world it improved the alignment between its products and
consumer needs at functional appearance and emotional levels strengthened the connection between
the brand and consumers and met the diverse needs of consumers. The Company emphasized quality
over quantity in product development to increase the on-shelf ratio and sales contribution of single
products. The product structure was optimized further expanding the brand lineup and enriching the
product line to increase the on-shelf ratio of must-have products. New products were developed from the
perspective of consumers cultivating high-quality highly functional products with strong IP appeal that
are both attractive and easy to use. By combining internal independent cultivation and collaboration with
external IPs and leveraging international design resources the Company has provided consumers with a
wider range of purchasing options.Mass market stationery segment. The strategy of “exploitation of potential collaboration andproduct capability” and the consumer-centric principle were followed continuously developing products
that meet the essential needs of the general public. Adopting a bestseller-oriented mindset the Company
has brought customers a full range of stationery products of reliable quality and essential functions
whist scientifically managing the products across their lifecycle. It has optimized the product structure
and maintained competitiveness. The Company continued to delve deeply into the needs in core
categories such as writing instruments and student stationery. On the one hand it has established a
well-structured product portfolio strengthening the on-shelf and sell-through performance of key
flagship and mid-tier products; on the other hand it focused on developing long-term bestsellers and
building strong functional capabilities while staying agile in capturing opportunities across niche
segments. Through ongoing improvements in quality and user experience it strove for sustainable
business growth.Premium stationery segment. The Company actively optimized its product mix and increased the
on-shelf ratio of best-selling items at key stores. In addition to continuing to focus on the development of
highly functional products it also kept pace with market trends and develop products that provide
emotional value and align with market hotspots. It stayed attuned to evolving consumption trends
exploring market dynamics consumer behavior and preferences for IP collaborations. By gaining
deeper insights into changing tastes mindsets and habits it has been better positioned to deliver both
practical value and emotional resonance to consumers.Arts and kids drawing segment. The Company focused on the needs of children’s learning and
creative scenarios using technological innovation to strengthen product capabilities and reinforce its
competitive edge in core categories. It continued to make breakthroughs in direct-ink flow control
technology and has developed the “Da Mo Wang” (High-Capacity) direct-ink acrylic marker series
enhancing both category competitiveness and market performance. Based on the completeness of
category structure and positioning the Company has enhanced product layout and developed product
tiers. Through in-depth exploration and quick response to consumers’ new pain points and expectations
when using stationery the Company has consistently launched high-quality products that resonate with
consumers.Office stationery segment. The Company has strengthened the development and promotion of
office products combining traffic price-quality ratio with differentiated innovation in product
development to tap into practical structural innovations continuing to create distinctive products that
stand out in the market. It has upgraded and refined existing products across key categories better
meeting the needs of channel partners and enhancing overall product competitiveness. Offline it focused
on core office SKUs driving the on-shelf ratio and promotion of office supplies across key stores
nationwide through coordinated and integrated efforts. Online it mapped traffic entry points and built
omni-channel coverage for priority categories continuously strengthening its office product portfolio.IP-powered products. The Company has built a diversified IP collaboration ecosystem focusing
on independent IP incubation IP operation joint brand development and trendy toy derivatives. It
operates IPs based on long-termism stays in sync with young people at all times and keeps IPs fresh
relevant and engaging while building lasting loyalty among fans. By combining independent IP
incubation and collaborations with popular domestic and international IPs the brand has deeply operated
an IP product matrix. It empowers stationery through IPs creating products that combine practical value
(easy to use) aesthetic appeal (visually engaging) and emotional enjoyment (fun to use). In doing so it
is evolving from a provider of function to a provider of emotional value. During the Reporting Period
18 / 233Annual Report 2025
the Company launched several new IP collaboration series which received positive market feedback.
2. Core traditional business continued omni-channel and improved retail service capabilities
During the Reporting Period the Company continued to promote omni-channel development of its
core traditional business. Based on changes in consumer demand and habits the Company continued to
optimize retail operation towards a channel structure with a multi-level distribution system as core. This
omni-channel and multiple contact point enabled more direct access to customers through new offline
channels online channels and direct supply channels. Further the change from a wholesaler toward a
brand retail service provider.Develop traditional channels with a focus on improving the quality of single stores and the
construction of positions. Efforts have been made to improve the quality of single model stores thus
empowering stores to enhance business quality. The Company highlighted the promotion of the
best-selling product offering and established more precise merchandising standards and optimized
product mix at the stores advancing in-store position building and ensuring effective shelf placement for
key categories. Guided by the strategy of “expanding positions and deepening categories” it broadened
position coverage improved sell-through at stores expanded business district coverage and increased
market share. Moreover it standardized the daily management and visit mechanisms for stores to
improve the service quality and operational efficiency of key stores and consolidate the fundamentals of
channel operations.Improve the operational efficiency of channels with digital tools. The information-based
channels and high data effectiveness have effectively assisted in enhancing operational efficiency. M&G
Alliance APP’s role of linking the headquarters to stationery store owners was leveraged to empower
store owners through information sharing and private domain live streaming which enhances store
engagement. The “JUBAOPEN” APP acts as a fundamental operational tool for daily business checks
providing real-time and accurate sell-through data to empower the real-time promotion decisions onbusiness of stationery shops and enhancing their capability in “the right match between right shops andright products”. Keeping pace with the times in advancing the pilot of the instant retail system the
Company has established functions for rapid onboarding across multiple platforms and enhanced store
merchandise management capabilities building a moat for instant retail operations within the industry.Continuously promote direct model. Continued efforts were made to promote headquarters direct
supply partner direct supply office direct supply and premium stationery and increase efficiency to
create incremental sales. The office direct supply model further empowered business and developed and
tapped the potential of offline professional channels. The Company continued to expand M&G office
stores and model office stores and enhance the service capabilities in order to meet the demands ofprofessional channels. The premium stationery segment followed the core strategy of “focusing onpriorities building benchmarks and replicating successful models” to boost per-store revenue from
existing customers and achieve seamless on-shelf placement for all M&G product categories.Additionally the Company output the product offerings of large stores at retail summits to enhance the
cooperative engagement with leading large stores in the industry leading the ways of high-quality stores
next to schools.Increase online channels. The Company vigorously developed online business with the online
direct sales model and distribution model working in synergy. It promoted omni-channel development
integrating online and offline operations adopted multiple measures to tap into the potential for online
growth and accelerated its transformation and development. On one hand the Company strove to
strengthen its collaborative operation system. By integrating inventory across its direct-operated stores
on all e-commerce platforms and implementing centralized inventory management it achieved
cross-platform inventory sharing and complementary assortments of best-selling products thereby
improving operational efficiency. On the other hand with a greater focus on the exploitation of product
line arrangements and product capability of online categories the Company has developed
platform-specific products joint creations and customised products offering a range of new products to
meet the differentiated consumer demands of various platforms. Meanwhile the Company optimized its
marketing strategies. Through scenario and customer base analysis of competing products it developed
more targeted marketing strategies to support the creation of channel bestsellers. During the Reporting
Period M&G Technologies’ revenue was RMB1204 million an increase of 5%.
3. Actively promote overseas markets layout and deepen localized operations in overseas
markets
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The Company has actively developed overseas markets deepening its localized layout in
international markets. Centered on the strategy of “the right stores with the right products” the
Company focused on key cities in priority seizing channel entry opportunities and driving business
growth through deep store-by-store development. Meanwhile category-based promotion was advanced
and category position momentum was gradually built. Through coordinated efforts in product selection
and allocation merchandising standards display tools and execution a strong presence has been
established for both highly functional core products and IP-driven series meeting the diversified needs
of overseas consumers. The Company coordinated category-based promotion planning focused on
identifying core products for overseas markets and implemented a unified ToC marketing strategy.Orders and execution plans were prepared in advance and its overseas product competitiveness
continued to be strengthened. The Company refined its overseas business models channel models team
models and product models establishing a solid foundation for the continuous development of the
Company’s overseas market.
4. Continue to strengthen brand presence
The Company focused on high-end products that are “exquisite and thoughtful” and meet
“upgraded consumer needs” using thoughtful scenarios such as Jiumu Store and flagship stores as
channel matrices and platforms such as Douyin Xiaohongshu and personal media as communication
matrices. This has deepened consumers’ impressions of a cost-effective exquisite and high-quality brand.Through content formats such as “store visits” “product recommendations” and “emotional value” it
has positioned product functionality as the core selling point and emotional value as the key
communication hook continuously enhanced brand awareness and conversion efficiency and drove
brand upgrading. During the Reporting Period the Company joined hands with Tencent Video to launch
a new co-branded series featuring Chinese animation IPs. The integrated innovation of domestic
products trend culture and homegrown animation a more youthful and refreshed M&G has been
brought to consumers. As a leader in embracing ACG culture within the stationery and creative products
industry the Company stands alongside younger consumers. It listens closely to their voices
collaborates with the IPs they love and connects through shared emotions thus building deeper more
meaningful engagement with its users. Through its co-branded partnership with People’s Education
Press it continued to reinforce its positioning as a provider of professional stationery products enhanced
awareness and trust at stores and strengthened the overall brand presence.
5. Consolidate and improve the Company’s middle-end and back-end platform capabilities to
strengthen the operational foundation
Promote design and R&D. The Company consistently upheld a consumer-centric approach
focusing on integrating technological breakthroughs with consumers’ actual needs. Guided by both
foundational technology development and the conversion of new innovations into market-ready products
it conducted forward-looking fundamental research in materials structures and processes continuously
enhancing its technology accumulation and the efficiency of commercializing research results. It has
built an international design team and strengthened innovative design capabilities continuously
injecting new content and design possibilities into traditional stationery. Based on category structure and
category positioning completeness the Company has improved its product layout and created product
tiered groups offering consumers high-quality aesthetically appealing cost-effective and competitive
products to meet consumers’ needs across multiple scenarios and enhance their usage experience. During
the Reporting Period M&G Premium Safety Scissors with Rotating Blade Sheath won the 2025 iF
Design Award.MBS Business System (MBS). The Company has comprehensively and deeply promoted the MBS
system integrating it with business operations and further improving the system. Through structural
reforms and capability platform building the Company has established an MBS-driven lean operation
system across R&D production supply chain sales and other links continuously introducing lean
improvement methods and standardized management mechanisms and driving a shift in management
from being “experience-driven” to being “data-driven and mechanism-driven” while carrying out
systematic improvements in quality enhancement cost reduction efficiency improvement and risk
control. As the MBS system continued to deepen the Company has been strengthening lean talent
management model and refining MBS mechanisms. Employees were increasingly proactive in
identifying and driving improvements with initiatives becoming more routine and standardizedfostering a culture of broad participation and continuous iteration. The “continuous improvement +
20 / 233Annual Report 2025talent development” dual-drive model has provided sustained momentum for the Company’s
high-quality development.Coordinate supply chain. The Company advanced “intelligent manufacturing + qualitymanufacturing” as its core approach continuously upgrading intelligent technologies across both
production and inspection. By applying tools such as machine vision key parameters can be identified
and automatically assessed which has significantly improved efficiency and consistency. It fed data
back into process optimization and yield improvement to strengthen its quality control systems and
empowered core and high-potential suppliers through manufacturing support and on-site improvement toenhance quality stability and delivery reliability. Adhering to “managing demands internally andresources externally” it refined the coordination mechanism across R&D production and sales
constructed a product capability based on high quality optimal cost fast delivery and strong innovation
and integrated ESG requirements into supply chain management continuously reinforcing supply chain
resilience and supporting sustainable development.Logistics support. The Company continued to build a tiered demand-driven logistics service
system around the differentiated needs of diverse business models (including B2B B2C e-commerce
distribution and retail) providing differentiated refined and efficient logistics service support for each
business department based on their business types and requirements. It has achieved the nationaldistribution layout covering “five warehouses across four regions including East China South ChinaNorth China and Central China” with coordination between trunk lines and last-mile delivery
optimized coverage expanded and peak capacity flexibility enhanced for better cross-regional
allocation and prompt replenishment. Utilizing digital tools and launching an intelligent scheduling
system the Company has visualized and digitalized logistics services driving simultaneousimprovements in operational efficiency and stability. Its fulfillment capabilities that are “fastcost-efficient stable and scalable” have provided strong support for business development.Digitalization development. The Company has fully advanced digital transformation and
continuously strengthened the construction of its big data platform focusing on the core demands of“business empowerment efficiency enhancement ecosystem collaboration and internal controlcompliance”. Data from all businesses markets and customers are aggregated and made visualized and
useful to provide scientific support for business decisions. On this basis by collaborating with
departments such as finance supply chain sales business segments logistics and human resources the
Company is able to connect processes and share data advancing the comprehensive online integration
standardization and visualization of processes including front-end customer engagement transaction
fulfillment R&D and manufacturing supply chain operations financial accounting and organizational
management so as to ensure faster decision-making more reliable delivery better services and the
exploration of more room for incremental growth. Actively leveraging AI to empower business the
Company promoted the in-depth application of AI across all business areas.Construction of organization and talent. The Company has always regarded talent as the first
resource. Centered on its operational strategic objectives it promoted talent and organizational
development along the main lines of role planning capability building performance incentives cultural
atmosphere and shared services establishing a systematic and multi-level talent management systemand gradually forming a virtuous cycle mechanism for “attracting developing utilizing and retainingtalent”. It is committed to building a dynamic organization. Guided by revitalizing talent energizing
teams understanding current situations and driving improvement the Company kept refining its
organizational structure and operating mechanisms to enhance agility and collaboration. It has fostered a
people-oriented and inclusive corporate culture while building an efficient human resources service
platform using data as the foundation to optimize role alignment and talent development pathways. This
has strengthened coverage for critical roles and the talent pipeline providing solid organizational
support for the Company’s steady operations.
6. Large retail store business steadily developed
Jiumu Store has a clear positioning in the Company’s strategy which is to become the bridgehead
for the M&G brand and product upgrading and also to become a national leading premium recreation
and creativity retail brand. More exposure of the M&G brand can help drive development of M&G’s
premium stationery products strengthen retail capabilities provide timely consumer insights and
provide feedback for the brand’s continuous upgrading and market expansion.The stores made further improvements in product portfolios refined operations and consumer
insights and services establishing a continuous mechanism for checking people products and stores.
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Through the coordinated development of online and offline channels the Company is able to provide
consumers with a convenient omni-channel shopping experience which has further solidified its leading
position in the mid-to-high-end cultural and creative retail market for stationery.During the Reporting Period the offline network of Jiumu Store continued to expand. Efforts
across multiple dimensions including store upgrades themed pop-up campaigns IP collaborations and
category expansion and deeper membership operations were deployed in a coordinated and systematic
way. Together these initiatives have formed a powerful growth engine driving brand renewal
enhancing the consumer experience and expanding market scale thus ensuring sustained vitality and
competitive strength on top of an already scaled platform.Jiumu Store has initiated multi-format store testing across its offline network tailoring product
assortments and in-store scenarios to different commercial districts to achieve a strong fit between store
positioning and target customer segments. A new large-store format has been introduced and rolled out
with comprehensive upgrades to visual identity and spatial experience at the store. By optimizing visual
space display flow and service experience it has significantly enhanced customer dwell time and
loyalty.In terms of membership operations Jiumu Store focused on its membership base establishing a
complete and efficient membership management system. It refined its management model enhanced
membership benefits and diversified member activities so as to improve member satisfaction. By
upgrading the mini-program store and integrating multi-channel membership benefits it boosted
member royalty and engagement. The membership base has surpassed ten million laying a solid
foundation for the long-term development of the brand.In terms of IP and product expansion investments in and sales of IP-related (ACGN goods and
related merchandise) products have increased. Jiumu Store continued to drive themed pop-ups and other
event-led campaigns extending the reach of its IP beyond core circles attracting more young consumers
and building strong brand buzz. The proportion of M&G and other own-branded products has also
increased with more original categories and products from Jiumu Store brought to market offering
consumers a richer and more diverse selection. While deepening and refining its core categories Jiumu
Store also actively introduced IP-derived products with high relevance. Through collaborations with
popular IPs it has increased interactions with consumers and further enhanced its brand presence and
member loyalty.During the Reporting Period M&G Life (including Jiumu Store) recorded revenue of RMB1585
million an increase of 7% among which Jiumu Store’s revenue was RMB1537 million an increase of
9%. As of the end of the Reporting Period the Company had over 860 Jiumu Stores in China.
Unit: RMB 0’000
M&G Life
(including Jiumu 2025 2024 2023 3-year average
Store)
Revenue 158509.88 147921.38 133535.55 146655.60
Net profit -7894.92 -1629.11 2291.32 -2410.90
Of which Jiumu
2025 2024 2023 3-year average
Store
Revenue 153734.90 140645.45 124043.08 139474.48
Net profit -8451.04 -1244.28 2572.81 -2374.17
7. General materials digital procurement service business experienced steady development
As a pioneer and industry leader in enterprise procurement digitalization Colipu Group aligns with
the government’s push for transparent open and well-regulated procurement while also addressing
enterprises’ needs to improve procurement efficiency and reduce procurement costs for non-production
office and administrative supplies. Colipu Group continues to set the benchmark for the industry through
its distinctive one-stop digital procurement solutions cutting-edge digital and intelligent applications
comprehensive product portfolio as well as efficient supply chain warehousing and distribution
management.In terms of business scenarios Colipu Group has focused on four business segments including
one-stop office supplies procurement MRO industrial products marketing gifts and employee benefits.It has placed particular emphasis on expanding the supply chain for MRO industrial products and
marketing gifts with the proportion of these emerging business segments increasing rapidly.
22 / 233Annual Report 2025In terms of customer development Colipu Group adhered to the professional spirit of “digging
10000 meters deep from a 1-meter-wide opening”. Colipu Group pursued a coordinated strategy of
deepening existing customer relationships while expanding new business opportunities continuously
enhancing its market penetration and project acquisition capabilities across key industries and among
leading customer groups.In the central and state-owned enterprise (“SOE”) sector Colipu Group has further expanded the
depth and breadth of its business presence and strengthened its competitiveness in core sectors
successfully secured key projects with major clients such as China Yajiang Group and Power
Construction Corporation of China further broadening service coverage and enhancing industry
influence.In the government sector Colipu Group further advanced its regional strategic deployment by
successfully being shortlisted for projects with the Jiangsu Provincial Government and Huainan Mining
Industry gaining braoder market recognition for its service capabilities and brand credibility in the
public sector.In the financial sector Colipu Group expanded and upgraded its portfolio of leading institutional
clients by successfully establishing partnerships with top-tier institutions such as Bank of China China
Life and China Everbright Bank further increasing both market share and brand value.In the MRO industrial products segment Colipu Group continued to unlock value from existing
customer relationships by deepening collaboration with clients including China Electronics Technology
China Energy Conservation Investment and China National Building Material further expanding
application scenarios and extending service boundaries.Middle-end and back-end platforms. Colipu Group advanced on two fronts: digital
empowerment and category specilization. It continued to strengthen its digital transformation initiatives
by developing innovative digital platform systems and promoting digital development centered around
the “four online capabilities” — online organization online collaboration online business operations
and online management. By leveraging AI to empower business operations the Group enhanced
operational efficiency customer experience and decision-making capabilities ensuring that its business
solutions remain efficient flexible and scalable while driving the in-depth application and continuous
innovation of large-model technologies.At the same time Colipu Group accelerated the development of core products and proprietary
brands while further improving a stable high-quality and sustainable supplier ecosystem. These efforts
supported the transition from scenario-based supply to more specialized operations and enabled the
integration of the entire supply-demand value chain.On the fulfillment side Colipu Group continued to optimize its nationwide warehousing footprint
and transportation network and made innovations in the data-driven and intelligent warehousing.Through the enhancement of its self-operated warehousing and distribuiton system expansion of urban
warehouse deployment and strengthening of last-mile delivery and diversified fulfillment capabilities it
further improved cross-regional service coverage and delivery reliability providing strong support for
the expansion of new business initiatives.During the Reporting Period challenging as the environment was Colipu Group maintained its
strategic focus and firm development confidence achieving steady and positive business performance. It
recorded revenue of RMB15048 million an increase of 9%.Unit: RMB 0’000
Colipu Group 2025 2024 2023 3-year average
Revenue 1504820.63 1383143.57 1330699.41 1406221.20
Net profit 33464.83 32178.31 40120.65 35254.59
8. Enhance quality and efficiency and strengthen shareholder return
Increase the dividend payout ratio to safeguard the interests of shareholders. The Company
attaches great importance to investor return safeguards shareholders’ rights and interests and adopts a
consistent dividend policy. It brings investors long-lasting and stable return on investment through cash
dividends and other profit distribution ways and shares with shareholders the operating results of the
Company. It has increased the cash dividend payout ratio for quite a few consecutive years. The
Company’s cash dividend per 10 shares for 2025 is expected to be RMB10 (to be deliberated by the
meeting of shareholders) and cash dividends are expected to account for 70% of the net profit
attributable to the parent company in the year. Since the Company went public the cumulative dividends
and share repurchases (including the profit distribution plan for 2025) have exceeded RMB5.6 billion.
23 / 233Annual Report 2025
Retire repurchased shares to boost market confidence. To effectively improve investment
returns for shareholders further convey to investors its firm confidence in its long-term intrinsic value
enhance its long-term investment value and strengthen investor confidence the Company retired
2858043 shares held in the special securities account for repurchased shares and reduced the registered
capital accordingly during the Reporting Period.
9. Sustainable development
During the Reporting Period the Company released its sustainable development strategic goals for
2030 integrating the sustainable development strategy into its core business and operating model and
promoting the transformation of ESG from a concept into measurable trackable actions. In terms of
sustainable products it launched the eco-conscious stationery series and the low-carbon office stationery
series. In response to climate change it systematically advanced emissions reduction efforts increased
investment in renewable energy such as photovoltaic power generation and green electricity
procurement and raised the proportion of renewable energy used. In terms of sustainable supply chain it
continuously implemented supplier ESG assessments improved the admission mechanism for new
suppliers and organized special training sessions for key suppliers. In empowering employees and
communities it mobilized executives and employees to actively participate in charitable donations and
carry out volunteer services. With outstanding performance in ESG practice the Company’s MSCI ESG
rating was upgraded to “AA” and it was included in S&P Global’s Sustainability Yearbook the Ministry
of Ecology and Environment’s 2025 Model Cases of Biodiversity Conservation in Industry and
Commerce the China Association for Public Companies’ 2025 Best Practices in Sustainability among
Listed Companies and the “2025 China Enterprise ESG 100 Index” list.IV. Analysis on Core Competitiveness during the Reporting Period
√ Applicable □ Not applicable
As one of the largest stationery manufacturers in the world the Company enjoys unique
competitive advantages in terms of brand channel supply chain design and R&D in its core traditional
business. Colipu Group leads the way as a supplier for governments and enterprises in the online
channel. During the Reporting Period no significant change occurred to the core competitive edges of
the Company which are summarized as follows:
1. Corporate culture and teamM&G is a company with a strong sense of mission and social responsibility with an aim to “makestudy and work more joyful and effective”. The Company has been in business for more than 30 years
and has always kept its original aspiration in mind. It has promoted development through innovation and
breakthroughs and provided consumers with high-quality products and services. It is committed to
providing Chinese students with affordable good domestic stationery and continues to devote itself to
various social welfare undertakings thereby promoting its continuous development. At the same time
the Company has cultivated an excellent team that highly recognizes the Company’s values has passion
and technology is good at innovation and competitive in the industry is united and enterprising and
keeps unremitting struggle.
2. Brand advantage
As a leader of “own brand + domestic demand” in China’s stationery industry the Company has
established a leading position for its own brand products amidst competitions of domestic market. The
Company ranked the first in “Top Ten Enterprises in China’s Light Industry and Writing Instrument” for
13 consecutive years. M&G brand has sound brand recognition among consumers and served as the
designated stationery brand for Boao Forum for Asia for many years. The Company was selected as one
of the “Excellent Products of the Era” in the light industry among the first batch of China’s Famous
Consumer Products by the Ministry of Industry and Information Technology. The Company has won the
title of “China’s 500 Most Valuable Brands” for eight straight years and the title of “China Annual No.1Stationery Brand Award” again in 2025 winning international praise with excellent quality and brand
reputation and showing the brand value of Chinese stationery to the world.
3. Channel advantage
24 / 233Annual Report 2025
The Company has a strong first-mover and leading advantage with a wide and deep coverage of
distribution network across China. The Company has established an efficient distribution management
system and a domestic terminal network with deep penetration. During the Reporting Period the
Company continued to broaden and deepen the national network and perfected online and offline
channels establishing an omni-channel multi-level and multi-contact marketing network. At the end of
the Reporting Period the Company has 35 tier-one distributor partners and about 1200 tier-two and
tier-three distributor partners across China covering approximately 70000 retail stationery shops with
“M&G Stationery” logo across China over 900 large retail stores and more than one thousand of
authorized stores in Taobao system JD.com Pinduoduo Douyin and other e-commerce channels.
4. Supply chain advantage
The Company benefits from experience of large-scale manufacturing accumulated throughout the
past years independent mold development capability stable supply chain sound quality control system
and introduction of advanced information management systems. The Company has the capability of
large-scale manufacturing with high quality control standard. The good and stable product quality has
won general recognition and favorable comments from consumers. The Company promotes the
application of intelligent manufacturing technology in the production and inspection links of the
stationery industry and applies machine vision technology in various key links to greatly improve the
efficiency of production and inspection thus serving as a benchmark and demonstration role for
transforming the extensive industrial mode into an intensive and intelligent one.With the idea of partnership in its business operation the Company has strived to build a high
standard supply chain ecosystem. By continuously iterating and upgrading its scientific management for
supply chain the Company has obtained new practice achievements in information collaboration across
the value chain inventory optimization financial support for supply chain management informatization
of quality and order and optimization of supplier performance to help business partners get stronger
operation system and simultaneously improve both loyalty and operation capability of its business
partners. By doing so it has achieved win-win development together with its ecosystem partners.
5. Design and R&D advantage
The Company has the capability to respond timely to market and strong R&D capacity for new
products. The Company conducts market research for new product development and identifies market
trends. The Company launches about one thousand new products each year to meet consumer needs. The
Company has been awarded with such four major international industrial design awards as German iF
Award Red Dot Design Award G-mark and IDEA for its product design. The Company has a design
studio in Israel highlighting the world-class design capabilities of M&G Stationery. As of the end of the
Reporting Period the Company owned more than 1400 patents for invention design and utility models.The Company has broken through the foreign technical barriers and got hold of the raw material
formula and production technology with domestic independent intellectual property rights greatly
enhancing the percentage of home-made raw materials and finished products. The Company has been
recognized as a national high-tech enterprise since 2010 and has built a number of national or provincial
level technology platforms such as National Industrial Design Center China Key Laboratory of Light
Industry and Writing Instrument Engineering Technology Shanghai Writing Instrument Engineering
Technology Research Center. The testing laboratory of the Company had CNAS certification
qualification and its testing capabilities have reached a world-class level.
6. Colipu Group’s competitive advantages
Colipu Group is committed to providing highly influential large-scale customers in China
including central state-owned enterprise groups large financial institutions government departments
and Global 500 companies with full-scenario digital procurement solutions covering one-stop office
supplies MRO industrial products marketing gifts and employee benefits. It has long been deeply
engaged in the government and enterprise procurement services sector and has accumulated rich service
experience project experience and customer resources. Over time it has established a stable customer
base and strong market reputation becoming one of the most influential enterprise procurement service
providers in China recognized and trusted by both customers and suppliers.Over the years Colipu Group has built a deep and well-established manufacturer supply chain
network with product offerings covering renowned domestic and international brands and a
comprehensive product portfolio capable of meeting customers’ diverse procurement needs across
25 / 233Annual Report 2025
multiple scenarios. By continuously advancing supply chain management and capabilities in
merchandise governance it has achieved end-to-end visualization and traceability from procurement to
fulfillment and improved the efficiency of resource allocation and supply chain collaboration.Leveraging data analysis capabilities it is able to better understand changes in customer demand
continuously optimize merchandise mix and supply strategies and constantly improve the product
system.Colipu Group has established an efficient nationwide logistics and distribution network. Through
the coordinated integration of its self-operated warehousing and distribution capabilities with third-party
logistics providers it effectively covers major regions across the country enabling prompt order
response and reliable fulfillment. It continues to advance the digitalization and automation of
warehousing and logistics systems improving order processing efficiency and fulfillment stability. In
addition it offers a variety of online procurement solutions including the enterprise-specific
e-commerce platform and the marketing gift & benefits redemption platform supporting system
integration and digital tool applications to provide customers with a convenient and efficient
procurement experience.Colipu Group keeps advancing the digitalization of its procurement services and has been
recognized as both a National E-commerce Demonstration Enterprise and a Shanghai E-commerce
Demonstration Enterprise. It has a technical R&D team of approximately one hundred members andleverages intelligent systems to manage the full business cycle from “business opportunity to paymentcollection”. Both its digital business systems and system integration capabilities are independently
developed in-house and have been certified as Information System Security Protection Grade III
ensuring the security and integrity of transaction data.Colipu Group is supported by an experienced professional team providing end-to-end services
from pre-sales to after-sales with a service network covering all 31 provinces autonomous regions and
municipalities in China. Leveraging long-standing brand influence a solid financial foundation a stable
supply chain fulfillment system and continuously improving system capabilities it strengthens
compliance management throughout its operations and enhances the transparency and traceability of
business processes enabling it to meet the complex procurement needs of large customers across
multiple organizations regions and scenarios while continuously improving service capabilities and
delivering sustained value to customers.Rooted in the enterprise procurement service sector Colipu Group continues to explore high-quality
development pathways and is committed to driving the sustainable transformation of the industry. It
upholds high-quality development by continuously improving its sustainable procurement service system
advancing green operations and optimized supply chain management deepening digital and intelligent
enablement supporting employee growth and actively contributing to community development. During
the Reporting Period Colipu Group published its Environmental Social and Governance (ESG) White
Paper.V. Financial Performance during the Reporting Period
In 2025 the Company recorded revenue of RMB25064 million an increase of 3.45% and a net
profit attributable to its shareholders of RMB1310 million a decrease of 6.12% while net profit
attributable to its shareholders after deducting non-recurring profit and loss amounted to RMB1124
million a decrease of 8.92%. As at the end of 2025 the total asset of the Company amounted to
RMB18075 million an increase of 8.97%. The net asset attributable to shareholders of the listed
company amounted to RMB9288 million an increase of 4.24%. The Company has maintained healthy
growth and its assets are in a good condition.(I) Analysis of principal operation
1. Analysis of change in certain items in income statement and cash flow statement
Unit: Yuan Currency: RMB
Amount in the current Amount in the same Change in the
Item
period period last year proportion (%)
Revenue 25063909836.47 24228248698.65 3.45
Operation cost 20462813963.30 19649752559.47 4.14
Selling expenses 1860144631.03 1738039609.61 7.03
Administrative expenses 966231850.63 981802848.21 -1.59
26 / 233Annual Report 2025
Financial expenses -5076226.98 -39623735.02 Not applicable
R&D expenses 189639354.87 189145980.66 0.26
Net cash flow generated from
2282072468.652289340796.79-0.32
operating activities
Net cash flow generated from
-1715924885.85 -1574839557.15 Not applicable
investing activities
Net cash flow from financing
-1352914770.08 -698573860.33 Not applicable
activities
Income from investment 9895830.01 -364758.05 Not applicable
Gains from asset disposal -2847905.15 -10284.89 Not applicable
Non-operating expenses 20142203.88 15492461.01 30.01
Explanation on the reason for change in financial expenses: Interest income during the Reporting
Period decreased compared with the same period last year.Explanation on the reason for change in net cash flow from financing activities: Dividend
distributions and loan repayments increased during the Reporting Period and capital contributions from
minority shareholders were received in the same period last year.Explanation on the reason for change in income from investment: During the Reporting Period the
Company made additional investments in an equity investee which constituted a business combination
not under common control. Gains were generated from the remeasurement of the formerly held equity
interests at fair value before the acquisition date.Explanation on the reason for change in gains from asset disposal: Losses from the Company’s
disposal of certain outdated equipment increased during the Reporting Period.Explanation on the reason for change in non-operating expenses: Public welfare donations made by
the Company during the Reporting Period increased compared with the same period last year.A detailed description of the major changes in the Company’s business type profit composition or profit
source in the current period
□ Applicable √ Not applicable
2. Analysis of revenue and cost
√ Applicable □ Not applicable
During the Reporting Period exclusive of related-party transactions the Company’s core
traditional business decreased by 5% as compared to the corresponding period of last year and new
business increased by 9% as compared to the corresponding period of last year.
(1) Result of principal business by industry product region and sales model
Unit: Yuan Currency: RMB
Result of principal business by industry
Change in Change in Change in gross
Gross
revenue cost from profit margin
By industry Revenue Operation cost margin
from last last year from last year
(%)
year (%) (%) (%)
Manufacturing
and sales of Increase by 1.55
8787849273.385733426445.1134.76-4.97-7.17
stationery and percentage points
office supplies
Decrease by 0.51
Retail industry 16216302425.98 14691168352.98 9.40 8.68 9.29
percentage point
Service industry 485849.00 -73.79
Result of principal business by product
Change in Change in Change in gross
Gross
revenue cost from profit margin
By product Revenue Operation cost margin
from last last year from last year
(%)
year (%) (%) (%)
27 / 233Annual Report 2025
Writing Increase by 1.99
2424275548.591335198920.7544.92-0.20-3.69
instruments percentage points
Student Increase by 1.93
3246143580.722081715902.3035.87-6.49-9.22
stationery percentage points
Increase by 0.03
Office stationery 3301497877.29 2386764946.84 27.71 -7.57 -7.60
percentage point
Decrease by 0.05
Other products 984028392.69 552019684.22 43.90 13.76 13.86
percentage point
Direct office Decrease by 0.43
15048206300.0714068895343.986.518.809.30
supplies percentage point
Management fee
485849.00-73.79
for franchising
Result of principal business by region
Change in Change in Change in gross
Gross
revenue cost from profit margin
By region Revenue Operation cost margin
from last last year from last year
(%)
year (%) (%) (%)
Decrease by 0.71
China 23904618821.92 19740199409.52 17.42 3.34 4.24
percentage point
Other countries Increase by 3.44
1100018726.44684395388.5737.785.900.36
and regions percentage points
Principal business by industry product region and sales model
1. Revenue from principal business of the Company includes revenue from manufacturing and selling
stationery and office supplies revenue from retail industry and revenue from service industry.
2. Revenue from retail industry refers to revenue gained by Colipu Group and M&G Life through selling
non-M&G products.
3. Revenue from service industry refers to management fee for franchising. During the Reporting Period
the decrease in service revenue was mainly due to the corresponding reduction in management fee for
franchising charged to franchisees as the number of franchisees increased.
4. Writing instruments refer to products of writing utensil sold by the Company (excluding Colipu
Group).
5. Student stationery refers to products of student stationery sold by the Company (excluding Colipu
Group).
6. Office stationery refers to products of office supplies sold by the Company (excluding Colipu Group).
7. Other products refer to products sold by the Company (excluding Colipu Group) apart from writing
instruments student stationery and office supplies.
8. Direct office supplies refer to products in all categories sold by Colipu Group.
Unit: RMB 0’000
Result of revenue by business
Change in
Business Revenue in 2025 Revenue in 2024 Change
amount
Core traditional
884532.27932576.30-48044.03-5%
business
Direct office
1504820.631383143.57121677.069%
supplies business
Large retail store
158509.88147921.3810588.507%
business
Transactions
-41471.80 -40816.38 -655.42 Not applicable
offset
Total 2506390.98 2422824.87 83566.11 3%
(2) Analysis of production and sales volume
√ Applicable □ Not applicable
Major products Unit Production Sales Inventory Change in Change in Change in
28 / 233Annual Report 2025
production sales inventory
from last from last from last
year (%) year (%) year (%)
Writing instruments Piece/Numbers 1769191818 1828140098 404334673 -4.19 -3.61 -12.72
Student stationery Piece/Numbers 4580085818 4648464897 472581840 -10.03 -9.80 -12.64
Office stationery Piece/Numbers 1919604222 1923051820 177026370 -3.56 -3.19 -1.91
Other products Piece/Numbers 28003385 27379780 11564900 9.96 15.73 5.70
Direct office supplies Numbers 748426905 747204568 16478591 44.42 44.22 8.01
Explanation on production and sales volume
No
(3) Performance of major procurement contracts and major sales contracts
□ Applicable √ Not applicable
(4) Analysis of cost
Unit: RMB Yuan
By industry
Percentage
change in the
Percentage
Percentage amount for
of total
of total Amount in the the current Explanation
Cost Amount in the costs for
By industry costs for same period last period as on the
item current period the same
the current year compared to situation
period last
period (%) the same
year (%)
period last
year (%)
Manufacturing
Cost of
and sales of
principal 5733426445.11 28.07 6176303519.87 31.48 -7.17
stationery and
business
office supplies
Cost of
Retail industry principal 14691168352.98 71.93 13442763378.60 68.52 9.29
business
Service
//////
industry
By product
Percentage
change in the
Percentage
Percentage amount for
of total
of total Amount in the the current Explanation
Cost Amount in the costs for
By product costs for same period last period as on the
item current period the same
the current year compared to situation
period last
period (%) the same
year (%)
period last
year (%)
Cost of
Writing
principal 1335198920.75 6.54 1386323149.56 7.07 -3.69
instruments
business
Cost of
Student
principal 2081715902.30 10.19 2293212791.68 11.69 -9.22
stationery
business
Cost of
Office
principal 2386764946.84 11.69 2583183210.58 13.17 -7.60
stationery
business
Cost of
Other products 552019684.22 2.70 484826976.29 2.47 13.86
principal
29 / 233Annual Report 2025
business
Cost of
Direct office
principal 14068895343.98 68.88 12871520770.36 65.61 9.30
supplies
business
Management
fee for / / / / / /
franchising
Explanation on other situations of cost analysis
No
(5) Change in the scope of consolidation due to change in the equity of major subsidiaries during
the Reporting Period
□ Applicable √ Not applicable
(6) Major change in or adjustment to the Company’s business products or services during the
Reporting Period
□ Applicable √ Not applicable
(7) Major customers and suppliers
Customers or suppliers under the same controller are presented on a consolidated basis as a single
customer or supplier except for those actually controlled by the same state-owned asset management
authority.Explanation on consolidation of the following information of customers and suppliers under the same
control
No
A. Major customers and suppliers of the Company
Sales of the top 5 customers amounted to RMB6107.37 million accounting for 24.37% of the total
annual sales. Of the sales of the top 5 customers sales of related parties amounted to RMB0 accounting
for 0% of the total annual sales.Unit: RMB Yuan
Rank Customer name Sales amount As % of the annual total sales
1 First 2980567654.47 11.89
2 Second 983083166.54 3.92
3 Third 886396719.62 3.54
4 Fourth 630399331.72 2.52
5 Fifth 626927640.45 2.50
Total 6107374512.80 24.37
Purchase amount of the top 5 suppliers amounted to RMB1421.84 million accounting for 6.89% of the
total annual purchase amount. Of the purchase amount of the top 5 suppliers purchase amount of related
parties amounted to RMB0 accounting for 0% of the total annual purchase amount.Unit: RMB Yuan
As % of the annual total
Rank Supplier name Procurement amount
procurement
1 First 495514373.98 2.40
2 Second 357525457.36 1.73
3 Third 260301539.97 1.26
4 Fourth 162622610.39 0.79
5 Fifth 145872589.08 0.71
Total 1421836570.78 6.89
30 / 233Annual Report 2025
B. During the Reporting Period the sales attributable to a single customer exceeded 50% of the
total sales there are new customers among the top 5 customers or a small number of customers
were heavily depended on.□ Applicable √ Not applicable
During the Reporting Period the procurement from a single supplier exceeded 50% of the total
amount and there were new suppliers among the top 5 suppliers or a small number of suppliers
were heavily depended on.□ Applicable √ Not applicable
C. Indicate whether the Company’s stock was subject to the delisting risk warning or other risk
warnings during the Reporting Period.Top 5 customers
□ Applicable √ Not applicable
Top 5 suppliers
□ Applicable √ Not applicable
D. Trading revenue during the Reporting Period
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Revenue in the current Revenue in the same
Trading operations Change (%)
period period last year
Sale of office supplies 1504820.63 1383143.57 8.80
Top 5 customers where trading revenue accounts for more than 10% of total revenue
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Rank Customer name Sales amount As % of the annual total sales
1 First 298056.74 11.89
2 Second 98303.48 3.92
3 Third 88644.55 3.54
4 Fourth 63039.93 2.52
5 Fifth 62692.76 2.50
Total / 610737.47 24.37
Top 5 suppliers where trading revenue accounts for more than 10% of total revenue
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
As % of the annual total
Rank Supplier name Procurement amount
procurement
1 First 16262.26 1.16
2 Second 14587.26 1.04
3 Third 9244.56 0.66
4 Fourth 8946.02 0.64
5 Fifth 8046.38 0.58
Total / 57086.48 4.08
Other descriptions
No
3. Expenses
√ Applicable □ Not applicable
Unit: RMB Yuan
Item in statement Amount in the Amount in the last Change in the Reason for change
31 / 233Annual Report 2025
current period period proportion (%)
Selling expenses 1860144631.03 1738039609.61 7.03
Administrative
966231850.63981802848.21-1.59
expenses
R&D expenses 189639354.87 189145980.66 0.26
Interest income during
the Reporting Period
Financial
-5076226.98 -39623735.02 Not applicable decreased compared
expenses
with the same period
last year.
4. R&D investment
(1) Table of R&D investment
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Expensed R&D investment in the current period 189639354.87
Capitalized R&D investment in the current period 0.00
Total R&D investment 189639354.87
Proportion of total R&D investment in revenue (%) 0.76
Percentage of capitalized R&D investment (%) 0.00
(2) Details of R&D personnel
√ Applicable □ Not applicable
Number of the Company’s R&D staff 450
Percentage of the number of R&D staff to the Company’s total
8.18
number of employees (%)
Educational background structure of R&D personnel
Category Number of people
Doctor’s degree 0
Master’s degree 47
Bachelor 236
College degree 87
High school and below 80
Age structure of R&D personnel
Category Number of people
< 30 years old (exclusive) 130
30 - 40 years old (including 30 years old excluding 40 years old) 222
40 - 50 years old (including 40 years old excluding 50 years old) 75
50 - 60 years old (including 50 years old excluding 60 years old) 23
> 60 years old 0
(3) Explanation
√ Applicable □ Not applicable
The total R&D investment of the parent company accounted for 3.43% of the parent company’s revenue.
(4) Reasons for the major changes in the composition of R&D personnel and the impact on the
future development of the Company
□ Applicable √ Not applicable
5. Cash flow
√ Applicable □ Not applicable
32 / 233Annual Report 2025
Unit: RMB Yuan
Change in
Amount in the Amount in the same the
Item Reason for change
current period period last year proportion
(%)
Net cash flow
generated from
2282072468.652289340796.79-0.32
operating
activities
Net cash flow
generated from Not
-1715924885.85-1574839557.15
investing applicable
activities
Dividend distributions and loan
repayments increased during the
Net cash flow
Not Reporting Period and capital
from financing -1352914770.08 -698573860.33
applicable contributions from minority
activities
shareholders were received in
the same period last year.(II) Explanation on significant change of profit caused by non-core business
□ Applicable √ Not applicable
(III) Analysis of assets and liabilities
√ Applicable □ Not applicable
1. Assets and liabilities
Unit: Yuan Currency: RMB
Change
Percenta in
Percenta
ge of percenta
ge of
total ge for
total
Amount as at the assets at the
Amount as at the end assets at
Items end of the current the end current Explanation
of last period the end
period of period
of last
current over the
period
period last
(%)
(%) period
(%)
During the Reporting
Held-for-trading Period the purchased
4108620317.1422.732569112993.2215.4959.92
financial assets bank’s wealth management
products increased.During the Reporting
Period Colipu Group’s
Bills receivable 59999337.34 0.33 17425526.65 0.11 244.32 commercial acceptance bills
increased compared with
the beginning of the year.During the Reporting
Period the compensation
Non-current assets
215660.65 0.00 862796.30 0.01 -75.00 from the former shareholder
due within one year
of Axus Stationery was
received.During the Reporting
Period term deposits due
Other current assets 152292696.29 0.84 243981456.14 1.47 -37.58
within one year were due as
performance bonds.This is mainly due to the
Construction in completion of the Central
44073444.330.24148515963.080.90-70.32
progress China Base Project during
the Reporting Period and
33 / 233Annual Report 2025
the corresponding transfer
from construction in
progress to fixed assets.During the Reporting
Period the Company made
additional investments in an
equity investee which
constituted a business
combination not under
Goodwill 105404838.99 0.58 63529740.20 0.38 65.91
common control. Goodwill
arose from the difference
between the purchase cost
and the fair value of the
acquiree’s identifiable net
assets.During the Reporting
Period prepayments for
Other non-current
4753846.49 0.03 19704965.34 0.12 -75.87 equipment and engineering
assets
decreased compared with
the beginning of the year.During the Reporting
Period the Company
Derivative financial entered into forward foreign
46320.080.00///
liabilities exchange contracts which
resulted in losses from
changes in fair value.Lease payments received in
Accounts received
3378737.08 0.02 / / / advance during the
in advance
Reporting Period.The estimated sales return
Other current
164408891.88 0.91 98936760.02 0.60 66.18 amount for the Reporting
liabilities
Period increased.During the Reporting
Long-term Period Axus Stationery’s
35998000.000.206000000.000.04499.97
borrowings long-term borrowings
increased.This is mainly due to the
addition of new pending
Estimated liabilities 500000.00 0.00 369927.50 0.00 35.16
lawsuits during the
Reporting Period.Some projects were
completed and accepted
during the Reporting
Deferred income 15887633.60 0.09 34963559.04 0.21 -54.56
Period and their related
income was recognized in
the current period.During the Reporting
Period shares were
repurchased some of which
were retired. For details see
the Announcement on the
Implementation Results of
Share Repurchase and
Less: Treasury Changes in Shares
150041006.570.83251095546.751.51-40.25
shares (Announcement No.:
2025?003) and the
Announcement on
Re-purposing Part of the
Repurchased Shares and
Their Retirement
(Announcement No.:
2025?010).
This is mainly due to the
Other Not
effect of differences in the
comprehensive -590724.83 -0.00 -11423451.31 -0.07 applicab
translation of the financial
income le
statements of Back to
34 / 233Annual Report 2025
School Holding AS in
foreign currencies during
the Reporting Period.Other descriptions
No
2. Overseas assets
√ Applicable □ Not applicable
(1) Asset size
Including: overseas assets of 572549693.17 (unit: Yuan currency: RMB) accounting for 3.17% of the
total assets.
(2) Explanation for the high proportion of overseas assets
□ Applicable √ Not applicable
3. Major restricted assets as at the end of the Reporting Period
√ Applicable □ Not applicable
1. Mortgaged assets and assets in pledge
(1) The subsidiary Axus Stationery entered into the Maximum Mortgage Contract numbered
ZD9874202200000005 with Shanghai Pudong Development Bank Co. Ltd. Fengxian Sub-branch on
September 15 2022 and the Supplemental Contract to the Maximum Mortgage Contract numbered
ZD9874202200000005-01 with Shanghai Pudong Development Bank Co. Ltd. Fengxian Sub-branch on
September 22 2025 under which it pledges its lands and plants under Property HFDQ Zi (2013) No.
015437 Property HFDQ Zi (2013) No. 013396 and Property HFDQ Zi (2015) No. 015718 at the
maximum secured claim amount of RMB200 million and for the term of credit line from September 15
2022 to December 31 2027.
(2) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered BD133202411010001201 with Jiangsu Siyang Rural Commercial Bank Co. Ltd. on October
30 2024 under which it pledges its lands and plants under Su (2019) Siyang County Real Estate No.
0018047 Su (2019) Siyang County Real Estate No. 0018032 Su (2019) Siyang County Real Estate No.
0017990 and Su (2019) Siyang County Real Estate No. 0017993 at the maximum principal limit of
RMB49507300 and for the term of credit line from October 30 2024 to October 17 2027.
(3) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered DY131425000031 with Bank of Jiangsu Co. Ltd. Suqian Branch on June 4 2025 under
which it pledges its Su (2019) Siyang County Real Estate No. 0017990 Su (2019) Siyang County Real
Estate No. 0018047 Su (2019) Siyang County Real Estate No. 0018032 and Su (2019) Siyang County
Real Estate No. 0017993 at the maximum secured claim amount of RMB45.78 million and for the term
of credit line from June 4 2025 to May 21 2028.
(4) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered 110011125001C001 with Industrial Bank Suqian Branch on December 19 2025 under which
it pledges its patents including Automatic Plate Flipping Device (Patent No.: CN109850536B)
Automatic Feeding Circular Stack Planking Device (Patent No.: CN107253613B) Defect Detection and
Sorting Device in Wooden Pencil Slat Processing (Patent No.: CN105548209B) and Manufacturing
Method of Colored Pencil Lead (Patent No.: CN101412867B) at the maximum principal limit of
RMB10 million and for the term of credit line from December 19 2025 to December 19 2026.
2. As of the end of the Reporting Period the Company had restricted monetary funds of
RMB1039079333.49 mainly including term deposits over three months.
4. Other descriptions
□ Applicable √ Not applicable
35 / 233Annual Report 2025
(IV) Analysis on industry operating information
√ Applicable □ Not applicable
For details see “II. Description of the Company’s industry conditions during Reporting Period” in
“Section III Management Discussion and Analysis” of this report.
36 / 233Annual Report 2025
(V) Analysis of investment
Overall analysis of external equity investment
√ Applicable □ Not applicable
For details see “1. Business combination not under common control” under “IX. Change in Consolidation Scope” in “Section VIII Financial Report” of this
report.
1. Significant equity investment
□ Applicable √ Not applicable
2. Significant non-equity investment
□ Applicable √ Not applicable
3. Financial assets measured at fair value
□ Applicable √ Not applicable
Securities investment
□ Applicable √ Not applicable
Description of securities investment
□ Applicable √ Not applicable
Private equity fund investment
□ Applicable √ Not applicable
Derivatives investment
√ Applicable □ Not applicable
(1) Derivatives investments for hedging purposes during the Reporting Period
√ Applicable □ Not applicable
On April 28 2025 the Company held the 11th Meeting of the 6th Board of Directors which reviewed and approved the Proposal on Conducting Foreign
Exchange Derivative Transactions. The outstanding balance of foreign exchange derivative transactions to be conducted by the Company and its subsidiaries shall
not exceed RMB750 million (or other equivalent amounts in foreign currencies) at any time during the transaction period. The total balance of trading margins and
premiums occupied at any time during the said period shall not exceed RMB70 million (or other equivalent amounts in foreign currencies). The transaction period
shall be valid for 12 months from the date of approval at the 11th Meeting of the 6th Board of Directors. The transaction amount at any time within the transaction
37 / 233Annual Report 2025
period (including the relevant amount from reinvestment of earnings generated from the aforesaid transactions) shall not exceed the above-mentioned limits. For
details please refer to the Announcement on Conducting Foreign Exchange Derivative Transactions (Announcement No.: 2025-017) disclosed by the Company on
April 29 2025.As of the end of the Reporting Period the carrying value of the Company’s forward foreign exchange contracts stood at RMB-46000. The gain or loss arising
from foreign exchange derivatives during the Reporting Period amounted to RMB-2294000. The Company conducts foreign exchange derivative transactions in
accordance with the principle of prudence. Based on its production and operation activities such transactions are entered into for hedging purposes only. The
Company does not engage in speculative or arbitrage transactions purely for profit nor do such transactions affect the development of its principal business.
(2) Derivatives investments for speculative purposes during the Reporting Period
□ Applicable √ Not applicable
Other descriptions
No
4. Progress of major asset restructuring and integration during the Reporting Period
□ Applicable √ Not applicable
Opinion of independent directors
No
(VI) Sale of significant assets and equity interests
□ Applicable √ Not applicable
(VII) Analysis of major controlled companies and shareholding companies
√ Applicable □ Not applicable
Major subsidiaries and shareholding companies with an over 10% effect on the Company’s net profit
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Type of
Company name Principal operations Registered capital Total assets Net assets Revenue Operating profits Net profit
company
Shanghai M&G Zhenmei Stationery
（上海晨光珍美文具有限 Stationery and office Co. Ltd. Subsidiary 1000.00 4317.37 -251.77 13323.93 -480.80 -474.86supplies
公司）
Colipu Technologies Group Co.Subsidiary Office supplies 59400.00 826448.19 271581.00 1504820.63 45665.85 33464.83Ltd. （科力普科技集团股份有限公
38 / 233Annual Report 2025
司）
Shanghai M&G Stationery & Gift
Stationery and officeCo. Ltd.（上海晨光文具礼品有限 Subsidiary 19941.94 158181.12 93815.60 356328.63 13678.84 10080.74supplies
公司）
M&G Life Enterprise Management
Stationery and officeCo. Ltd.（晨光生活馆企业管理有 Subsidiary 10000.00 131881.23 -13574.37 158509.88 -7816.80 -7894.92supplies限公司）
Shanghai M&G Jiamei Stationery
Stationery and officeCo. Ltd.（上海晨光佳美文具有限 Subsidiary 3000.00 4568.60 4199.14 12.66 38.68 42.51supplies
公司）
Shanghai M&G InformationTechnology Co. Ltd.（上海晨光信 Subsidiary Office supplies 5000.00 45590.56 -1477.75 120360.72 -793.71 -712.79息科技有限公司）
Shenzhen Erya Creative and
Design officeCultural Development Co. Ltd.（深 Subsidiary 2000.00 1460.03 1013.95 1475.67 -25.73 -25.71supplies and so forth圳尔雅文化创意发展有限公司）
Shanghai M&G Office Stationery
Subsidiary Office supplies 5000.00 92647.69 68486.42 164676.29 15863.18 11939.20
Co. Ltd.Axus Stationery (Shanghai) Stationery and office
Subsidiary 8100.00 60433.67 6294.15 50590.51 -2024.10 -2437.28
Company Ltd. supplies
Shanghai Chenxun Enterprise
InformationManagement Co. Ltd（. 上海晨讯企 Subsidiary 23500.00 47807.21 29400.57 55208.11 3863.16 2960.50Consultation业管理有限公司）
Shanghai Qizhihaowan Culture andCreativity Co. Ltd.（上海奇只好玩 Subsidiary Creative service 10000.00 10196.21 4976.34 23169.84 1028.75 946.14文化创意有限公司）
Guangdong South China M&G
（广东华南晨光 Stationery and office Stationery Co. Ltd. Subsidiary 5000.00 12541.89 6294.15 39113.82 646.57 488.05supplies文教用品有限公司）
Hubei M&G Central China
Stationery and officeInformation Technology Co. Ltd.（ Subsidiary 20000.00 81735.59 20784.65 2185.63 -293.95 -294.22supplies湖北晨光华中信息科技有限公司）
Shanghai M&G Online Selection
Stationery and officeStationery Co. Ltd.（上海晨光在线 Subsidiary 2000.00 6203.03 -4608.56 16593.63 -4019.83 -4020.59supplies甄选文具有限公司）
Subsidiaries acquired and disposed of during the Reporting Period
√ Applicable □ Not applicable
39 / 233Annual Report 2025
Methods of acquiring and disposing of subsidiaries Impact on overall production operation and
Company name
during the Reporting Period performance
Shanghai Mymybear Enterprise Management Co. Acquired through a business combination not under
No significant impact
Ltd. (上海沫沫班长企业管理有限公司) common control
Acquired through a business combination not under
M&G Stationery (Thailand) Co. Ltd. No significant impact
common control
Lanzhou M&G Cultural Supplies Co. Ltd. (兰州晨
Newly incorporated No significant impact
光文化用品有限公司)
Jiangsu M&G Life Enterprise Management Co. Ltd.De-registered No significant impact（江苏晨光生活馆企业管理有限公司）
Other descriptions
□ Applicable √ Not applicable
(VIII) Structured entities controlled by the Company
□ Applicable √ Not applicable
40 / 233Annual Report 2025
VI. Discussion and Analysis on Future Development of the Company
(I) Industry pattern and trend
√ Applicable □ Not applicable
With the changes in the way of life and consumption habit of consumers China’s retail industry
entered a new stage of redevelopment and innovation. Stationery industry faces challenges with
uncertainty of external environment diversification of retail channels and more individualized demands
from main customers group (now being the post-00s and post-10s). With the changing demographics of
China in particular the decreasing birth rate stationery industry revenue growth comes less from by unit
volume growth and more from consumption upgrade and product upgrade. Domestic consumption for
stationery in China becomes more brand conscious innovative IP-oriented individualized and more
premium. There is a growing demand for premium cultural and creative products driving the industry to
transform from functional satisfaction to value consumption. Demand for mid-to-high-end products that
combine aesthetic design cultural connotations and quality has continued to rise providing broad
opportunities for high-quality enterprises that emphasize the integrated capabilities of R&D design
branding and supply chain management.Sales channels for stationery in the domestic market are continuously expanding and improving.Traditional retail stationery shops nearby school are still the dominant channel for China’s stationery
industry and shares of other retail formats are increasing faster. Sales terminals and channels of the
industry are becoming more diversified upgrading and competition in channels becomes more obvious.With the popularity of the Internet smart phones and online transactions people’s consumption habits
and consumption scenarios have changed. New-generation marketing means are becoming more
diversified including online media platforms (such as Weibo WeChat Xiaohongshu and Douyin) and
IP topic creation which further tests enterprises’ ability to make quick response to industry trends.Compared with small- and medium-sized enterprises leading enterprises boast stronger and richer whole
network marketing and operation capabilities. They formulate refined marketing strategies by city to
reach consumers. In addition to online traffic offline channels are also required to realize refined
management by empowering channels through organizational reform and information system.According to the National Bureau of Statistics online retail sales across the country recorded RMB15.9
trillion in 2025 an increase of 8.6%. Outstanding companies in the consumer industry seized the
development opportunities of online consumption and achieved continuous sales growth through online
and offline integration.The new generation of young people has become a major force in driving new consumption. The
consumption concepts of the youth group are changing shifting from material fulfillment to emotional
resonance and from standardized supply to personalized customizationfrom. With the shift from a focus
on the practicality of goods to an increasing emphasis on the emotional value of consumption they are
more eager to achieve emotional resonance and psychological satisfaction through their purchases.Emotional value has evolved from an added consumption benefit into a core factor influencing
consumption decisions among contemporary young consumers who seek more than just emotional
value and cultural connection from IP collaborations but also see consumption as a way to express their
identity and engage with communities built around shared interests. They value the sense of joy
belonging and companionship that products bring. What they purchase is not just stationery but a
vehicle for emotion and self-expression. ACGN and cultural and creative merchandise have already
broken through traditional boundaries reflecting youth consumers’ recognition of excellent cultural
works such as animation and comics. This trend reflects a shift in consumption demand from
“pragmatism” to “emotional value”.With continued development in the stationery industry there could be higher industry consolidation
and leading companies could gain larger market shares. China’s population of 1.4 billion accounts for
about 18% of global population while leading stationery companies in China can continue to mostly
rely on the huge domestic market they also have room for international expansion in international
markets which could reinforce each other under favorable conditions. The global influence of Chinese
culture continues to rise. Not only do domestic consumers seek emotional resonance by purchasing
“Chinese trend” products but overseas consumers are also beginning to embrace Chinese elements
showing a positive outlook on Chinese goods.In the context of the digital economy thanks to favorable factors such as policy driving the rapid
advancement of centralized procurement by large- and medium-sized enterprises and the competition
among various digital procurement service providers great progress has been made in the digitalization
41 / 233Annual Report 2025
e-commerce and centralization of public procurement in China which have become the main form of
public resource transactions from central to local governments. According to the 2025 Smart
Procurement Supply Chain Development Report released by the China Federation of Logistics &
Purchasing the total procurement amount for enterprises nationwide reached RMB188.3 trillion in 2024
an increase of 7.3%. Among this the total amount of digitalized procurement was RMB21.7 trillion an
increase of 16.2% with a penetration rate increasing to 11.5% up by 0.9 percentage point compared
with 2023. According to Ebrun Think Tank analysis the rise in penetration is driven by two key factors.First continued policy support with governments at all levels rolling out targeted digital transformation
initiatives that provide clear guidance and financial backing for the digital procurement of enterprises;
second the growing impact of technology as the deeper application of big data and AI not only
streamlines procurement processes but also significantly improves efficiency through features such as
intelligent matching and automated approvals. As supply chain digitalization accelerates digital
procurement is expected to play an even greater role in helping enterprises reduce costs and improve
efficiency. More than 70 central enterprises have established online stores with a clear trend of product
diversification. In addition to office supplies and industrial products the procurement e-commerce
platforms of central enterprises have expanded into the areas of production materials and engineering
equipment.With the further development and application of information technology data have become a new
production element. Recommendations of the Central Committee of the Communist Party of China for
Formulating the 15th Five-Year Plan for National Economic and Social Development call for upgrading
and optimizing traditional industries advancing the quality and transformation of key sectors promoting
technological upgrading and accelerating the digital and intelligent transformation of manufacturing. It
also emphasizes the development of intelligent manufacturing green manufacturing and service-oriented
manufacturing while speeding up changes in industrial models and corporate organizational structures.The investment in the manufacturing industry has shifted from the investment in equipment and
assembly lines to the transformation of digital processes and digital transformation of products in a bid
to apply digital technology to reduce channel costs and management costs and become a digital-driven
modern enterprise.The future of stationery products will be shaped by personalization smart functionality and
sustainability. As the new generation of consumers expresses stronger individuality and more diverse
needs personalized stationery is gaining increasing popularity. At the same time advances in technology
are bringing intelligent features deeper into learning and office scenarios. Intelligent stationery enables
users to complete tasks more efficiently while offering support for learning and personalized guidance.Influenced by national policies and a shifting social landscape consumers are also paying closer
attention to product safety environmental impact and sustainability. As a result green environmental
and sustainable development has become a key direction for the future of the stationery industry.(II) Development strategy of the Company
√ Applicable □ Not applicable
1. Business strategyTo consolidate competitive advantages of core businesses by adhering to the mission of “makestudy and work more joyful and effective” being consumer centric and emphasizing on innovation of
technology and products; to further expand new businesses of direct office supplies and direct retail; to
actively expand international market; and to promote digitalization organization development and
talents and investment and mergers and acquisitions with synergy. With continued efforts in those four
areas the Company will realize the vision of becoming a “world-class M&G”.
2. Sustainable development strategy
In order to realize the vision of “World-class M&G” the Company has developed a sustainabledevelopment strategy together with its business strategy. With its vision of “Writing a SustainableBusiness Future” M&G aims to lead the sustainable development of the industry by focusing on four
pillars: sustainable products response to climate change sustainable supply chain and empowering
employees and communities.(III) Operation plan
√ Applicable □ Not applicable
42 / 233Annual Report 2025
In the face of changing consumer preferences buying habits and consumption scenarios as well as
the recovering market and long-term demographic trends in the domestic market the Company will
adhere to long-termism. It will push forward in key areas such as technological innovation and
transformation original design green intelligent and digital transformation differentiation balanced
and coordinated development brand value enhancement and global expansion whilst enhancing quality
and efficiency to cultivate new quality productive forces. Also it will promote the stable development of
core traditional business in all directions continue to expand new business beef up organizational
upgrading and reform and proactively exploit the global market in order to maintain sustainable
healthy and high-quality development of the Company and keep forging ahead toward its vision of
becoming a “world-class M&G”.In 2026 the Company plans revenue of RMB27.8 billion an increase of 11% mainly through the
following:
1. Core traditional business
Product capability enhancement
The Company will adhere to the “consumer-centric” philosophy accelerate technological and
product innovation and increase investment in R&D and innovation developing products with a focus
on bestsellers. It will reduce the quantity and improve the quality of product development and improve
the on-shelf ratio and sales contribution of the single product. Moreover the product structure will be
optimized by developing and cultivating high-quality highly functional and high-value-added products
to actively respond to the core market trends of branding creativity IP development personalization
and premiumization. The brand and product portfolios will be further expanded focusing on
breakthroughs in potential category segmentation opportunities and rapid responses. The Company will
strengthen IP empowerment. The combination of internal independent cultivation and collaboration with
external IPs will be promoted to innovate product structures enhance product capability improve
international design capabilities and provide consumers with more diversified choices of products. The
ultimate goal is to achieve sustainable brand development.Omni-channel offerings
The Company will focus on deepening channels and building the necessary infrastructure for brand
development. It will focus on key cities concentrate its efforts and resources to make breakthroughs in
major markets and develop targeted measures tailored to the different development stages and core
challenges of individual markets. It will further focus on top-tier high-quality large stores to improve
single store quality and strengthen the loyalty of key stationery stores. Besides the Company will also
strengthen the concept of position building and optimize position offerings to increase presence in
business districts. In addition continued efforts will be made to promote direct supply of office products
and premium stationery products both at headquarters and partners level to create incremental sales. The
Company will also explore new online distribution management models by formulating and
implementing differentiated operational strategies tailored to the characteristics of various online
channels and products so as to realize the full potential of online growth and expand market share
domestically. Additionally it will seize opportunities in the overseas market accelerate international
expansion and innovate with diversified channels.
2. Develop the middle-end and back-end platform capabilities
The Company will accelerate the digital transformation of the entire industrial chain. With the
M&G Business System (MBS) a lean management system as the core tool it will continuously enhance
lean management capabilities and operational efficiency and deepen data-driven operations so as to
support cost reduction and efficiency increase while developing new quality productive forces. The
Company will strengthen the continuous construction of the big data platform comprehensively capture
and deeply analyze the key data of each business market and customer provide a more timely accurate
and traceable scientific basis for business decision-making and promote the overall improvement of
digital management capability. Digital transformation of talent management will be advanced and an
intelligent talent database will be built. The concept of “talent supply chain” will be deepened the talent
mechanism for “attraction cultivation utilization and retention” will be improved and organizational
capability upgrades will propel high-quality business development creating a talent hub for the industry.
3. Continue to develop the large retail store business
43 / 233Annual Report 2025
Jiumu Store will continue to optimize its product mix and upgrade its category strategy expanding
its product portfolio in both directions. Horizontally it will expand the product boundary by actively
introducing new highly relevant categories to attract a broader consumer group; and vertically it will
deepen its focus on core advantageous categories continuously refine and deepen them consolidate its
professionalism and leadership and drive the dual improvement of the customer unit price and the
repurchase rate. Investment in IP-related product resources and the proportion of proprietary brands will
be increased to enrich the product structure. Continuous efforts will be made to increase the number of
channels and further strengthen channel advantages so as to maintain the rapid growth of offline
channels and the multi-channel growth of the online business. The Company will conduct in-depth
operations centered on membership and IP and build a more diversified brand growth model.Leveraging digital management thinking and tools the Company will enhance the business capabilities
of single stores. Talent pipeline development will be strengthened cultivating core talent in the business
sector to provide solid support for larger-scale national expansion and business growth ensuring the
Company’s sustainable development.
4. Accelerate the development of Colipu Group
Colipu Group will continue to upgrade and optimize its electronic trading system smart
warehousing and logistics management system digitalized supply chain and personalized services. It
will embrace the digitalization trend and use AI technology to inject new energy into tendering
processes operations scheduling and coordination and customer service so as to improve the efficiency
of the back-end platform and building a differentiated digital competitive edge. It will also focus on the
development of its core product categories and proprietary product system increase the proportion of
self-operated and proprietary products in sales and drive steady improvements in gross profit margin
and net profit margin. By pursuing market expansion and structural optimization in parallel the
company will continue to solidify its industry position. It will establish long-term and stable strategic
partnerships with central SOEs government agencies financial institutions and other partners jointly
build a more resilient and competitive modern supply chain system and achieve win-win results for all
parties. Meanwhile the launch of the spin-off listing project will help leverage the capital market’s role
in optimizing resource allocation further enhance the core competitiveness of Colipu Group and
achieve high-quality and sustainable development.(IV) Potential risks
√ Applicable □ Not applicable
1. Risks in operation management
With the great growth in the scale of assets and sale of the Company the Company faces new
challenges in operation management system internal control system and staff management. Although
the Company has developed operation management system and internal control system that accord with
features of its business and technology in its development and has recruited and cultivated stable core
management team operation of the Company will be adversely affected if the aforesaid management
system and management staff fail to promptly adapt to the rapid expansion of the Company. Therefore
the Company will keep improving its management system and internal control system and adopt various
measures to improve qualification of management staff.
2. Market risks
With social transformation and consumption upgrading stationery market presents opportunities
for structure-based development. The stationery industry is facing the challenges of shrinking demand
weaker expectations and increasing downward pressure. If the Company is unable to anticipate market
trends in time and adapt to market changes from aspects of innovation and upgrading quality
management to sale strategy the Company will encounter certain risks in market competition. Having
been aware of the problem the Company adheres to being market- and customer-oriented strengthens
technological innovation as well as promotes product channel and brand upgrades. Efforts are also
made to build a sounder quality management and control system. And market strategies are formulated
based on market survey analysis of big data and management discussion.
3. Risks from fiscal and taxation
According to Article 28 of Enterprise Income Tax Law of the People’s Republic of China the
enterprise income tax on important Innovation Companies that are necessary to be supported by the state
shall be levied at the reduced tax rate of 15%. The Company was re-recognized as an Innovation
44 / 233Annual Report 2025
Company in China on December 19 2025 and started to implement the policy of reduced enterprise
income tax rate of 15% on January 1 2025 for 3 years. If the state adjusts preferential income tax policy
for Innovation Companies or the Company fails to pass the review after its qualification of Innovation
Company expires operation performance of the Company will be adversely affected. As such the
Company performs strict control according to assessment standards for Innovation Company to ensure
that it meets all indicators and qualifies and passes the annual review and renewal for Innovation
Company.(V) Others
□ Applicable √ Not applicable
VII. Explanation on the Failure to Disclose as per Rules due to Inapplicability or Special Reasons
such as State Secrets and Business Secrets and the Reasons Thereof
□ Applicable √ Not applicable
45 / 233Annual Report 2025
Section IV Governance Environmental and Social Information
I. Particulars on Corporate Governance
√ Applicable □ Not applicable
During the Reporting Period the Company in strict compliance with the Company Law the
Securities Law and other applicable laws and regulations as well as the relevant regulatory documents
promulgated by the China Securities Regulatory Commission and the Shanghai Stock Exchange
continuously optimized the corporate governance structure of the Company and improved the
operational level of the Company strengthened the management of insider information and enhanced
the awareness of information disclosure responsibility to ensure continuous stable and high-quality
development and effectively protect the legitimate rights and interests of investors and relevant
stakeholders. The specific governance situation was as follows:
1. Shareholders and (general) meetings of shareholders: The Company holds (general) meetings of
shareholders in strict accordance with the requirements of the Articles of Association the Rules of
Procedure of the (General) Meeting of Shareholders and other applicable rules. Proposals procedures
and voting at the (general) meetings of shareholders were implemented in accordance with the relevant
provisions. When considering proposals related to related-party transactions related shareholders
avoided voting to ensure fair related-party transactions. For the convenience of the Company’s
shareholders (general) meetings of shareholders allow its shareholders to vote on site or online
including the flexible use of the One-Click Online Voting Service. This ensures the minority
shareholders have the right to stay informed about and vote on major issues of the Company and
participate in the operation of the company and this also helps protect the interests of minority
shareholders.
2. Controlling shareholders and the listed company: With an independent and complete business
system and the capacity for independent operation the Company and the controlling shareholders
achieved “five independences” in assets personnel finance organization and business and the
Company’s Board of Directors and internal control institutions operated independently; the Company’s
related-party transaction procedures were legal and the price was fair and the obligation of information
disclosure was fulfilled. The controlling shareholder and actual controller have earnestly fulfilled their
fiduciary obligations maintained the independence of the listed company and effectively protected the
legitimate rights and interests of the listed company and its investors.
3. Directors and the Board of Directors: As of the end of the Reporting Period the Company’s
Sixth Board of Directors consisted of seven directors including three independent directors and one
employee director and the composition of the Board of Directors complied with the requirements of
applicable laws regulations and the Articles of Association. All directors of the Company could in
accordance with the Articles of Association the Rules of Procedure of the Board of Directors and other
applicable rules earnestly perform their duties as directors and make prudent and scientific decisions.The convening of each meeting met the requirements of relevant regulations. The Company’s Board of
Directors had four special committees namely the Strategy Committee the Audit Committee the
Remuneration and Appraisal Committee and the Nomination Committee. Each special committee
carried out work in accordance with the relevant provisions of the implementation rules gave full play
to the professional role of each special committee strengthened the democratic and scientific
decision-making of the Board of Directors and ensured the sound development of the Company.
4. Information disclosure and transparency: The Company adhered to the principle of “truthaccuracy completeness timeliness and fairness” and strictly followed the requirements of temporary
announcement and periodic report format guidelines for information disclosure. To help investors get
familiar with the situation of the Company the content to be disclosed must be concise clear and easy
to understand and must truly and duly reflect the operating status of the Company.Whether there are significant differences between corporate governance and laws administrative
regulations and the requirements of the relevant regulations of the China Securities Regulatory
Commission on the governance of listed company; if there are significant differences the reasons should
be explained
□ Applicable √ Not applicable
46 / 233Annual Report 2025
II. Measures taken by the controlling shareholders and actual controllers of the Company to
ensure the independence of the Company’s assets personnel finance organization and business
as well as the solutions taken to address the impact on the Company’s independence work
progress and follow-up work plans
√ Applicable □ Not applicable
The Company was completely separated from the controlling shareholders in assets personnel
finance organization and business possessing independent and complete business and the ability to
operate independently.
1. Asset independence
The Company had business premises that are independent from the controlling shareholders and
had an independent and complete asset structure. The Company had complete control over all assets and
no asset or fund was occupied by controlling shareholders to damage the interests of the Company.
2. Personnel independence
The personnel and remuneration management of the Company were completely independent. The
directors and senior management of the Company were elected and appointed in strict accordance with
the relevant provisions of the Company Law and the Articles of Association. The president vice
president chief financial officer and secretary of the Board of Directors of the Company did not receive
remuneration from the controlling shareholders and their affiliated enterprises and held any positions
other than directors and supervisors. The Company is independent of its shareholders and other related
parties. It has established and independently implemented labor human resource and remuneration
management rules.
3. Financial independence
The Company had an independent financial and accounting department has established an
independent accounting system and financial management system and made financial decisions
independently. The Company’s chief financial officer and financial accounting personnel are all
full-time staff and do not hold part-time jobs in the controlling shareholder or their affiliated enterprises.The Company opened a basic deposit account independently and paid taxes independently.
4. Organizational independence
The Company has established a sound organizational system which exercises management powers
independently and operates independently. It has no affiliation with the controlling shareholders or their
functional departments.
5. Business independence
The Company’s business is independent from the controlling shareholders and their affiliated
enterprises. The Company has an independent and complete design R&D manufacturing and sales
system conducts business independently and does not rely on shareholders or any other related parties.Engagement of controlling shareholders actual controllers and other organizations under their control in
the same or similar business as the Company as well as the impact of horizontal competition or major
changes in horizontal competition on the Company measures taken progress of the resolution and the
follow-up resolution
□ Applicable √ Not applicable
47 / 233Annual Report 2025
III. Information on Directors and Senior Management
(I) Shareholding change and remuneration of directors and senior management currently employed and retired during the Reporting Period
√ Applicable □ Not applicable
Unit: share
Total pre-tax
remuneration Whether to
Number of
Number of from the get
shares held Change in
Gende shares held Reasons for Company remuneration
Name Position Age From To at the share of the
r at the end of change during the from related
beginning of year
the year Reporting parties of the
the year
Period (RMB Company
0’000)
Chen
Chairman Male 56 2014-6-12 2026-4-19 13609300 13609300 0 167.27 No
Huwen
Chen Vice Chairman and
Male 56 2014-6-12 2026-4-19 13609300 13609300 0 155.83 No
Huxiong President
Chen Director and Vice Femal Own funding
59 2014-6-12 2026-4-19 8100000 6075000 -2025000 137.52 No
Xueling President e needs
Employee Director
Fu Chang Male 56 2018-3-23 2026-4-19 64336 64336 0 150.64 No
and Vice President
Yu
Independent Director Male 55 2023-4-20 2026-4-19 0 0 0 20.00 No
Weifeng
Pan Jian Independent Director Male 50 2023-4-20 2026-4-19 0 0 0 20.00 No
Pan Fei Independent director Male 70 2022-4-20 2026-4-19 0 0 0 20.00 No
Chief Financial
Liu Jiaqi Male 43 2025-5-30 2026-4-20 0 0 0 71.32 No
Officer
Bai Kai Board Secretary Male 43 2023-4-21 2026-4-20 12906 12906 0 71.16 No
Tang Chief Financial
Male 44 2023-4-21 2025-5-30 0 0 0 109.12 No
Xianbao Officer
Total / / / / / 35395842 33370842 -2025000 / 922.86 /
Note: The term of office of Chen Huxiong Chen Xueling and Fu Chang as directors will expire on April 19 2026 and their term of office as senior management
will expire on April 20 2026.Name Main working experience
Born in July 1970 male Chinese nationality permanent residency in Hong Kong Master’s degree granted by the School of Economics and Management
Chen Tsinghua University and doctorate degree granted by the Carlson School of Management University of Minnesota. Has been involved in the stationery and
Huwen office manufacturing industry since 1997 PE equity investment since 2007 and stock and bond financial investment since 2015 and is one of the founders
of M&G Group. Now works as the chairman of the Company and Colipu Group. Has won honors such as the Model Worker in China Light Industry the
48 / 233Annual Report 2025
“Top Ten Brand Leaders” in Shanghai in 2013 the sixth batch of “Shanghai Outstanding Builders of Socialism with Chinese Characteristics” in 2023 and
the first batch of “Shanghai Outstanding Talents” in 2024.Born in July 1970 male Chinese nationality permanent residency in Singapore Executive MBA Cheung Kong Graduate School of Business. Has been
involved in the stationery manufacturing industry since 1995. Worked as General Manager of Shanghai Sino-Korean M&G Stationery Manufacturing Co.Chen Ltd. from 2001 to 2004 and Chairman of Shanghai Sino-Korean M&G Stationery Manufacturing Co. Ltd. from 2004 to 2009 and is one of the founders of
Huxiong M&G Group. Now works as Vice Chairman and President of the Company and is also Vice Chairman of China Writing Instrument Association Deputy
Director of Ballpoint Pen Professional Committee of China Writing Instrument Association and Chairman of China Writing Instrument Industry
Technology Innovation Alliance. Received the Nomination Award for Outstanding Entrepreneur of Shanghai (2019–2020).Born in October 1967 female Chinese nationality no permanent residency abroad holding a Bachelor’s degree; has been involved in the stationery
Chen
manufacturing industry since 1997 and is one of the founders of M&G Group; once worked as Deputy General Manager of the Company’s Production
Xueling
Center and now works as a director and Vice President of the Company.Born in January 1970 male Chinese nationality no permanent residency abroad holding a master’s degree in business administration (EMBA); once
worked as General Manager of Wuhan Maxleaf Stationery Ltd.; joined M&G Stationery in May 2006 and successively served as Deputy Director of
Fu Chang
Marketing Centre and Director of Production Centre; now works as a director and Vice President of the Company. and now works as a director and Vice
President of the Company.Born in November 1971 male Chinese nationality no permanent residency abroad; has over 30 years of experience a Weifang practicing lawyer received
his LL.B. degree from Fudan University in June 1995 received his MBA degree from China Europe International Business School in October 2015 and
completed the Executive Leadership Program of Harvard Business School in July 2019; has been a partner of Shanghai Links Law Offices since December
Yu Weifeng 1998; now concurrently serves as Vice Chairman of the Belt and Road Legal Services Alliance Director of the Foreign Affairs Committee of the All China
Lawyers Association President of the Shanghai Arbitration Association a member of the Administrative Reconsideration Committee of the Shanghai
Municipal People’s Government a member of the Shanghai Arbitration Commission and an arbitrator and mediator in a number of arbitration institutions
and mediation institutions.Born in January 1976 male Hong Kong permanent resident of China holding a master’s degree from the University of Chicago; once worked as a director
and Vice President of Contemporary Amperex Technology Co. Ltd. a director of Amperex Technology Ltd. a non-executive director of Luye Pharma a
Pan Jian
director of the Company and a director of Ceva Sante Animale Group; now works as the joint chairman and an executive director of Contemporary
Amperex Technology Co. Ltd.Born in August 1956 male Chinese nationality no permanent residency abroad doctor professor and doctoral advisor in management a member of the
American Accounting Association a member of the Accounting Society of China a member of the Management Accounting Committee of the Accounting
Society of China Vice President of the Shanghai Cost Research Society and Distinguished Editor at Modern Accounting. Pan Fei graduated from the
Pan Fei School of Accountancy Shanghai University of Finance and Economics in 1983 and was awarded a doctoral degree in accountancy in 1998. Since 2000 he
has received awards and honors including the Shanghai Educator Award the National Outstanding Individuals in Accounting the Fifth Shanghai Renowned
Teacher Award and the Shanghai Excellent Teaching Team Award. In January 2018 Pan Fei was rated by the Shanghai University of Finance and
Economics as a senior professor. In January 2019 he was approved as an expert eligible for special government allowances of the State Council.Born in May 1983 male Chinese nationality no permanent residency abroad an International Master of Business Administration (IMBA) degree from
Liu Jiaqi China Europe International Business School (CEIBS). Previously served as Senior Auditor at PricewaterhouseCoopers Zhong Tian LLP Senior Financial
Planning & Analysis Manager and Senior Financial Control Manager at Tesco China Chief Financial Officer at Anjuke Group Vice President of Finance at
49 / 233Annual Report 2025
Jia.com and Executive Director and Chief Financial Officer at eBeauty Group; now works as Chief Financial Officer of the Company.Born in December 1983 male Chinese nationality no permanent residency abroad holding a postgraduate degree; joined the Company in 2011 and once
Bai Kai
worked as an officer of the Board and Securities Affairs Representative; now works as Board Secretary of the Company.Particulars on other information
□ Applicable √ Not applicable
50 / 233Annual Report 2025
(II) Employment of directors and senior management currently employed and retired during the
Reporting Period
1. Employment in shareholders’ companies
√ Applicable □ Not applicable
Name of Position held in
Name of person employed shareholder’s shareholder’s From To
company company
Chen Huwen M&G Group President May 10 2007
Chen Huwen Keying Investment General partner February 18 2011
Chen Huxiong M&G Group Chairman May 10 2007
Chen Huxiong Jiekui Investment General partner February 18 2011
Chen Xueling M&G Group Director May 10 2007
Particulars on employment Save for the personnel disclosed above none of other directors and senior management of
in shareholders’ companies the Company were employed by the shareholders’ companies.
2. Employment in other companies
√ Applicable □ Not applicable
Name of person Position held in
Name of other companies From To
employed other companies
Shanghai Chenguang Venture
Chen Huwen General partner May 12 2011
Capital Center (L.P.)
Shanghai Chenguang Sanmei
Chen Huwen Director May 26 2008
Property Investment Co. Ltd.Shanghai Chenguang Venture
Chen Huxiong Limited Partner May 12 2011
Capital Center (L.P.)
Shanghai Chenguang Sanmei
Chen Huxiong Chairman May 26 2008
Property Investment Co. Ltd.Shanghai Chenguang Venture
Chen Xueling Limited Partner May 12 2011
Capital Center (L.P.)
Shanghai Chenguang Sanmei
Chen Xueling Director May 26 2008
Property Investment Co. Ltd.Yu Weifeng Llinks Law Offices Partner December 1998
Independent
Yu Weifeng Shenergy Company Limited June 30 2020 May 22 2026
Director
Independent
Yu Weifeng Sinopharm Group Co. Ltd. September 18 2020
Director
Shaanxi Jingxiaohe Trading Outside
Yu Weifeng May 12 2025
Co. Ltd. Director
Contemporary Amperex Director June 5 2017 December 25 2027
Pan Jian
Technology Co. Ltd. Joint Chairman January 17 2025 December 25 2027
Shanghai Zhonggu Logistics Independent
Pan Fei December 18 2023 September 12 2027
Co. Ltd. director
3PEAKIC Microeletronics Independent
Pan Fei January 10 2025 January 9 2028
Co. Ltd. director
Shanghai Tianyi Financial
Liu Jiaqi Supervisor December 4 2014
Consulting Co. Ltd.Particulars on
Save for the personnel disclosed above none of other directors and senior management of the
employment in
Company were employed by other related companies.other companies
(III) Remuneration of directors and senior management
√ Applicable □ Not applicable
Decision-making procedures for
The remuneration of directors is determined by the meeting of shareholders; and
the remuneration of directors and
the remuneration of senior management is determined by the Board of Directors.senior management
Whether a director steps aside in
the Board’s discussion of his/her Yes
remuneration matters
Recommendations by the The remuneration plan for the Company’s directors and senior management is in
Remuneration and Appraisal line with the remuneration level of the industry in which the Company operates and
Committee or the special meeting the Company’s actual operating conditions and there is no situation that harms the
of independent directors on matters interests of the Company and its shareholders.
51 / 233Annual Report 2025
relating to the remuneration of
directors and senior management
Allowances for independent directors of the Company are considered and approved
by the meeting of shareholders. Other non-independent directors and senior
Determination basis for the management that hold concurrent posts in the Company or any of its subsidiaries
remuneration of directors and are subject to the operation performance appraisal on an annual basis and the paid
senior management base salary on a monthly basis according to their specific posts in the Company or
any of its subsidiaries and the annual performance-based remuneration is settled
after the Company’s annual operation target is completed.Allowances for independent directors of the Company are paid on a monthly basis.Actual payment of the
Other directors and senior management receive a monthly base salary in
remuneration of directors and
accordance with the aforesaid provisions as well as performance-based
senior management
remuneration based on appraisal results.Total actual remuneration received
by all directors and senior
RMB9228600
management at the end of the
Reporting Period
The Company adopts an allowance system for independent directors. The annual
allowance for independent directors is RMB200000 (pre-tax) paid on a monthly
basis. Directors who also hold positions within the Company or its subsidiaries
The appraisal basis and execution shall not receive remuneration in their capacity as directors; instead they shall be
of the actual remuneration received compensated based on their respective positions within the company the
by all directors and senior company’s remuneration management policies and annual performance appraisals.management at the end of the The base salary of senior management is determined with reference to industry
Reporting Period remuneration levels job responsibilities and other factors and is paid monthly.Performance-based remuneration is appraised and determined based on the
achievement of the Company’s annual business objectives and their annual job
performance.Deferred payment arrangements for
the actual remuneration received by
all directors and senior Not applicable
management at the end of the
Reporting Period
Payment stop and recovery of the
actual remuneration received by all
Not applicable
directors and senior management at
the end of the Reporting Period
(IV) Changes in directors and senior management of the Company
√ Applicable □ Not applicable
Name Office title Change Reason for change
Tang Xianbao Chief Financial Officer Resigned Personal reasons
Liu Jiaqi Chief Financial Officer Appointed
(V) Particulars on punishments by securities regulatory authorities in the past three years
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
IV. Performance of Functions and Duties by Directors
(I) Attendance of directors at board meetings and meetings of shareholders
Attendance at
Attendance at board meetings meetings of
Indepen shareholders
Director
dent Number Number Number Two Number of
Name Number of Number
director of of of consecutive attendance at
attendance of
attendan attendanc attendan absences in meetings of
required absence
ce in e by ce by person shareholders
52 / 233Annual Report 2025
person communi proxy
cation
Chen Huwen No 5 5 3 0 0 No 2
Chen Huxiong No 5 5 3 0 0 No 0
Chen Xueling No 5 5 4 0 0 No 0
Fu Chang No 5 5 4 0 0 No 0
Yu Weifeng Yes 5 5 4 0 0 No 2
Pan Jian Yes 5 5 4 0 0 No 0
Pan Fei Yes 5 5 3 0 0 No 1
Particulars on two consecutive absences in person from board meetings
□ Applicable √ Not applicable
Number of board meetings held during the year 5
Including: on site 2
by communication 3
on site and by communication 2
(II) Directors’ objections to the Company’s related matters
□ Applicable √ Not applicable
(III) Others
□ Applicable √ Not applicable
V. Special Committees under the Board of Directors
√ Applicable □ Not applicable
(I) Members of special committees under the Board of Directors
Type Name of member
Audit Committee Pan Fei Chen Huwen Yu Weifeng
Nomination Committee Yu Weifeng Chen Huwen Pan Jian
Remuneration and Appraisal Committee Pan Fei Chen Huxiong Yu Weifeng
Strategy Committee Chen Huxiong Yu Weifeng Pan Jian
(II) During the Reporting Period the Audit Committee held 6 meetings
Convening Other performance of
Contents of meetings Important comments and recommendations
date duties
Debriefed and reviewed
the work summary for this
1. Considered and approved the Work year and the next year’s
March 17 First meeting of the Audit Summary of the Audit Department in 2024 work plan of the
2025 Committee in 2025 2. Considered and approved the Work Plan of Company’s Internal Audit
the Audit Department in 2025 Department and guided
the operation of the
Internal Audit Department.
1. Considered and approved the 2024 During the preparation of
Performance Report of the Audit Committee the annual report the Audit
under the Board of Directors Committee under the
2. Considered and approved the 2024 Board of Directors
Auditor’s Report communicated with BDO
3. Considered and approved the 2024 Annual China Shu Lun Pan CPAs
March 24 Second meeting of the
Report and Summary (LLP) which was
2025 Audit Committee in 2025
4. Considered and approved the 2024 Internal responsible for the
Control Evaluation Report Company’s annual audit
5. Considered and approved the Proposal on on the composition of the
Determining the Annual Audit Remuneration annual audit working
in 2024 group audit plan risk
6. Considered and approved the Report of the judgment and audit
53 / 233Annual Report 2025
Company on the Performance Assessment of priorities and continued to
the Accounting Firm in 2024 pay attention to the
7. Considered and approved the Report of the preparation of the
Audit Committee of the Board of Directors on Company’s annual
the Performance of Supervisory financial report.Responsibilities of the Accounting Firm in
2024
8. Considered and approved the Proposal on
the Re-appointment of the Company’ 2025
Audit Organization
April 27 Third meeting of the Considered and approved the Report for the
No
2025 Audit Committee in 2025 First Quarter of 2025
Considered and approved the Proposal on the
May 29 Fourth meeting of the
Appointment of an Additional Senior No
2025 Audit Committee in 2025
Management Member
August 27 Fifth meeting of the Audit Considered and approved the 2025
No
2025 Committee in 2025 Semi-annual Report and Summary
October 28 Sixth meeting of the Considered and approved the Report for the
No
2025 Audit Committee in 2025 Third Quarter of 2025
(III) During the Reporting Period the Remuneration and Appraisal Committee held 1 meeting
Convening Other performance of
Contents of meetings Important comments and recommendations
date duties
1. Considered and approved the Proposal on
First meeting of the the Remuneration Plan for the Company’s
March 24 Remuneration and Directors in 2025
No
2025 Appraisal Committee in 2. Considered and approved the Proposal on
2025 the Remuneration Plan for the Company’s
Senior Management in 2025
(IV) During the Reporting Period the Strategy Committee held 1 meeting
Convening Other performance of
Contents of meetings Important comments and recommendations
date duties
1. Considered and approved the 2024
First meeting of the Environmental Social and Governance (ESG)
March 24
Strategy Committee in Report No
2025
2025 2. Considered and approved the Proposal on
the Company’s 2025 Business Plan
(V) During the Reporting Period the Nomination Committee held 1 meeting
Convening Other performance of
Contents of meetings Important comments and recommendations
date duties
1. Considered and approved the Proposal on
First meeting of the
May 29 the Review Opinion Regarding the
Nomination Committee No
2025 Qualification of Liu Jiaqi Candidate for the
in 2025
Company’s Chief Financial Officer
(VI) Details of the matter in question
□ Applicable √ Not applicable
VI. Particulars on Risks in the Company Identified by the Audit Committee
□ Applicable √ Not applicable
The Audit Committee has no objection to the supervision matters during the Reporting Period.VII. Employee of Parent Company and the Principal Subsidiaries of the Company at the End of
the Reporting Period
(I) Employees
Number of employees in the parent company 2274
54 / 233Annual Report 2025
Number of employees in major subsidiaries 3229
Number of employees 5503
Number of retirees of whom the parent company and
0
major subsidiaries are responsible for the expenses
Professional structure
Category Number
Production personnel 1304
Sales personnel 1473
Technical personnel 450
Finance personnel 217
Administration personnel 304
Management personnel 1281
Others 474
Total 5503
Education background
Category Number (person)
University (including college) and above 3766
High school technical secondary school 724
Others 1013
Total 5503
(II) Remuneration policy
√ Applicable □ Not applicable
To conform to the Company’s organizational strategy the Company implements a competitive
remuneration policy where the employees’ remuneration is determined considering the job value
person-job fit and performance. By establishing and improving competitive remunerations and benefits
performance appraisal systems and incentive systems as well as by actively promoting the long-term
incentive and retention plan for mid- and senior-level personnel the Company attracted all kinds of
professional talents and formed healthy competitive work environment to stimulate the vitality and
potential of employees build a stable professional team and ensure the growth of the Company’s
performance.(III) Training program
√ Applicable □ Not applicable
Talent is always the core driving force for organizational development. The Company continues to
invest in the systematic development of the leadership pipeline strengthen the reserve and
empowerment of management talent at all levels and focus on the professional cultivation of
strategically critical positions. Therefore the Company has established a systematic management
curriculum system and actively built an internal trainer team driving talent development through both
internal knowledge transfer and professional enhancement.In terms of leadership and talent development for critical positions the Company implements
diversified learning programs including management training and full-cycle empowerment for
management trainees and combining online and offline modes to effectively elevate the overall
capabilities of its management team and talent reserves.The Company also attaches great importance to enhancing employees’ core professional
capabilities. On the functional side the “M&G Lecture” platform focuses on essential cross-functional
competencies delivering learning and empowerment through both external experts and internal trainers.On the production side the Company continuously improves a tiered and categorized position
certification and specialized training system applying a “centralized training + mentor coaching” model
to strengthen the “learning through practice and practicing through learning” mechanism ensuring that
technical teams continuously advance their capabilities and respond agilely to market changes.In addition the Company actively cultivates a digital learning ecosystem. The “Photosynthesis”
online learning platform has covered all business units and initiatives to strengthen organizational
culture and enhance employee engagement provide a solid foundation for comprehensive talent
development and the sustained growth of the organization.
55 / 233Annual Report 2025
(IV) Labor outsourcing
√ Applicable □ Not applicable
Total working hours of labor outsourcing 18517161 hours
Total remuneration paid for labor outsourcing (RMB Yuan) 825259496
VIII. Profit Distribution or Capital Accumulation Plan
(I) Formulation implementation or adjustment of the cash dividend policy
√ Applicable □ Not applicable
1. The existing profit distribution policy of the Company is implemented after it was passed at the
19th meeting of the 5th session of the Board of Directors and 2022 annual shareholders’ meeting.
2. Principle in profit distribution of the Company: The Company implements the dividend
distribution policy which entitles the shareholders to the same rights and same dividends under which
shareholders are entitled to receive dividends and other kinds of distribution of interests based on the
number of shares held by them. The Company adopts active profit distribution policy which emphasizes
investors’ reasonable investment returns while maintaining sustainability and stability. The Company is
allowed to distribute profit in cash or shares but its profit distribution shall not exceed the range of the
accumulated distributable profits or affect the Company’s ability to continue as a going concern.
3. Overall approaches to distribute profit of the Company: The Company distributes dividends in
cash or shares or cash-and-shares and if the Company satisfies the conditions for cash dividends
priority should be given to profit distribution by means of cash dividends.
4. Specific conditions and proportion for cash dividends: The Company primarily adopts cash
dividend as its profit distribution policy. The Company may distribute cash dividend when it makes a
profit in the current year and the distributable profits are positive after making up losses contributing to
the statutory reserves and surplus reserves but the profit distribution shall not exceed the range of the
accumulated distributable profits. In general if there are no material investment plans or significant cash
expenditure the Company may distribute profit in cash for a single year not less than 20% of the
distributable profit realized in the current year.In addition as for the proportion of cash dividends to the total profit distribution the Board of
Directors shall take into full account of various factors such as features of the industries where the
Company operates the stage of development its own business model level of profitability and whether
there is significant capital expenditure arrangement to distinguish the following situations and
determine differentiated cash dividend proportion in accordance with the procedures as required by the
Articles of Association:
(1) If the Company is at a mature stage of development and has no significant capital expenditure
arrangement the proportion of cash dividends in the profit distribution shall be at least 80% when the
profit distribution is made;
(2) If the Company is at a mature stage of development and has significant capital expenditure
arrangement the proportion of cash dividends in the profit distribution shall be at least 40% when the
profit distribution is made;
(3) If the Company is at a growing stage of development and has no significant capital expenditure
arrangement the proportion of cash dividends in the profit distribution shall be at least 30% when the
profit distribution is made;
(4) If the Company is at a growing stage of development and has significant capital expenditure
arrangement the proportion of cash dividends in the profit distribution shall be at least 20% when the
profit distribution is made.The aforesaid “significant investment plans” or “significant cash expenditure” refers to one of the
following:
(1) The proposed external investment acquisition of assets or purchase of equipment by the
Company in the coming twelve months with accumulated expenses amounting to or exceeding 50% of
the latest audited net assets of the Company and exceeding RMB50 million;
(2) The proposed external investment acquisition of assets or purchase of equipment by the
Company in the coming twelve months with accumulated expenses amounting to or exceeding 30% of
the latest audited total assets of the Company.Significant investment plans or significant cash expenditure that meets the above conditions shall
be reviewed and approved at the meeting of shareholders after being reviewed by the Board meeting.
56 / 233Annual Report 2025
5. During the Reporting Period the formulation and implementation of the cash dividend policy has
complied with the Articles of Association and the resolutions of the meetings of shareholders. The
dividend distribution standards and proportions are clearly stated and relevant decision-making
procedures and systems are complete. Independent directors have diligently served their obligations and
played their roles. As minority shareholders have opportunities to fully express their opinions and
appeals their legitimate interests have been fully protected.(II) Special description of the cash dividend policy
√ Applicable □ Not applicable
Does it meet the requirements of the Company’s Articles of Association or the
√Yes □No
resolutions adopted at the meeting of shareholders:
Are the dividend criteria and ratio definite and clear: √Yes □No
Are the relevant decision-making procedures and mechanisms complete √Yes □No
Do the independent directors perform their duties and play their due role √Yes □No
Do the minority shareholders have the opportunity to fully express their opinions
√Yes □No
and requests and whether their legitimate rights and interests get fully protection
(III) If the Company records profit distributable to shareholders of the Company during the
Reporting Period is positive but there is no proposal for cash dividend the Company shall disclose
the reasons the usage and the utilization plan of the undistributed profits in detail
□ Applicable √ Not applicable
(IV) Profit distribution and bonus issue from capital reserves for the Reporting Period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB Yuan) (tax inclusive) 10
Bonus issue from capital reserves (share/10 shares) 0
Cash dividends (tax inclusive) 915795377.00
Net profit attributable to ordinary shareholders of the
1310448991.96
listed company in the consolidated financial statements
Cash dividends as % of net profit attributable to
ordinary shareholders of the listed company in the 69.88
consolidated financial statements
Dividends in form of share repurchases in cash 48950582.98
Total dividends (tax inclusive) 964745959.98
Total dividends as % of net profit attributable to
ordinary shareholders of the listed company in the 73.62
consolidated financial statements
(V) Cash dividends for the last three accounting years
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Total cash dividends (tax inclusive) for the last three
2570581575.60
accounting years (1)
Total amount used for share repurchase and cancellation
150006527.90
for the last three accounting years (2)
Combined amount of total cash dividends and total
amount used for share repurchase and cancellation for 2720588103.50
the last three accounting years (3)
Annual average net profit for the last three accounting 1411031703.87
57 / 233Annual Report 2025
years (4)
Cash dividend payout ratio (%) for the last three
192.81
accounting years (5)=(3)/(4)
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial statements 1310448991.96
for the last accounting year
Undistributed profits of the parent company at the end of
5443173278.30
the last accounting year
IX. Equity Incentive Plan Employee Shareholding Plan or Other Employee Incentive Measures of
the Company and Their Impacts
(I) Incentive matters disclosed in temporary announcements and without further progress or
change in subsequent implementation
□ Applicable √ Not applicable
(II) Incentive matters which have not been disclosed in temporary announcements or with further
progress
Equity incentive
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
Employee shareholding plan
□ Applicable √ Not applicable
Other incentive measures
□ Applicable √ Not applicable
(III) Equity incentives granted to directors and senior management during the Reporting Period
□ Applicable √ Not applicable
(IV) Establishment and implementation of appraisal mechanism and the incentive mechanism for
senior management during the Reporting Period
√ Applicable □ Not applicable
The Company has established a relatively perfect performance evaluation and incentive system.Based on the principle that the income of senior management is linked to the business performance of
the enterprise the Company followed an open fair and impartial process to appoint senior management
and continuously and timely improved the assessment mechanism. The Company has established a
compensation system in line with the development needs of the Company and the actual situation of the
industry to ensure the enthusiasm of senior management.X. Construction and implementation of internal control system during the Reporting Period
√ Applicable □ Not applicable
During the Reporting Period the Company has established a strict internal control management
system in strict accordance with the requirements of the Company Law the Securities Law the Stock
Listing Rules of the Shanghai Stock Exchange and other applicable laws regulations and regulatory
documents as well as the Articles of Association. The Company has set up an Audit Committee under
the Board of Directors to review the internal control of the Company supervise the effective
implementation of internal control and self-evaluation of internal control and guide and coordinate
internal audit and other related matters. The Company has set up an Audit Department to independently
carry out audit under the guidance of the Audit Committee under the Board of Directors. The Audit
Department is accountable to the Audit Committee. The Audit Department evaluates the efficiency
results and effectiveness of the design and implementation of internal control through internal control
58 / 233Annual Report 2025
audits business management audits special audits and economic responsibility audits and promotes the
Company’s continuous improvement and enhancement of the quality of internal control. The Audit
Department reports the internal control defects found in the audit to the Audit Committee or the
management according to the seriousness of the problems and urges the relevant departments to take
active measures to rectify them. According to the identification of major defects in the Company’s
internal control in 2025 the Company had no significant defects and important defects in the internal
control of financial reporting and non-financial reporting. The Company has continuously improved the
internal control system. Therefore the internal control operation mechanism is effective which has
achieved the expected internal control objectives and protected the interests of the Company and all
shareholders.Particulars on major defects in the internal control during the Reporting Period
□ Applicable √ Not applicable
XI. Management and Control over the Subsidiaries during the Reporting Period
√ Applicable □ Not applicable
During the Reporting Period the Company has implemented the Management System for Holding
Subsidiaries stipulating the control measures and the responsibilities and authority of the parent
company and the subsidiaries in the subsidiary’s articles of association personnel appointment and
removal financial management operation decision information management inspection and
assessment so as to ensure that the various businesses of the subsidiaries meet the requirements of the
Company’s overall development strategy ensure that the financial position of the subsidiaries is
effectively monitored by the Company prevent significant operating risks of the subsidiaries and
protect the security and integrity of assets.Problems
Integration Integration Solutions Solution Subsequent
Name of subsidiary in
plan progress taken progress solutions
integration
Integration of
Integration of
organizational
organizational
Shanghai Mymybear structure structure
Enterprise Management management management
上海沫沫班长 rules No No No No Co. Ltd. ( rules
operational
企业管理有限公司) operational
models and
models and
business
business
completed
Integration of
Integration of
organizational
organizational
structure
structure
SHANGHAI M&G management
management
STATIONERY rules No No No No
rules
(THAILAND) CO. LTD operational
operational
models and
models and
business
business
completed
Risk warning regarding abnormalities in management and control over subsidiaries
□ Applicable √ Not applicable
XII. Particulars on the Auditor’s Report on Internal Control
√ Applicable □ Not applicable
The Company engaged BDO China Shu Lun Pan CPAs (LLP) to audit the implementation of
internal control in its 2025 financial statements and the Audit Report on Internal Control was issued. For
the full text of the report see 2025 Audit Report on Internal Control disclosed on the website of the
Shanghai Stock Exchange (www.sse.com.cn) on April 1 2026.Whether to disclose the audit report on internal control: yes
59 / 233Annual Report 2025
Opinion type of the audit report on internal control: With unqualified opinion
Indicate whether the Company was issued any modified opinion by the independent auditor on its
internal control for the Reporting Period or last year.□ Yes √ No
XIII. Self-inspection and Rectification of Problems in the Special Action on Governance of Listed
Companies
Not applicable
XIV. Environmental information of the listed company and its major subsidiaries included in the
list of enterprises that are required by law to disclose environmental information
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
XV. Overview of Social Responsibility
(I) Whether a social responsibility report sustainability report or ESG report is disclosed
separately
√ Applicable □ Not applicable
The Company has disclosed the 2025 Environmental Social and Governance (ESG) Report on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on April 1 2026.(II) Particulars on the fulfillment of social responsibility
√ Applicable □ Not applicable
Donations and public welfare activities Number/content Description
Total expenditure (RMB 0’000) 1091
Of which: Funds (RMB 0’000) 380
Worth of supplies and materials (RMB 0’000) 711
Number of people benefited 921000
Detailed description
√ Applicable □ Not applicable
The Company always undertakes social responsibilities of its own accord. During the Reporting
Period the Shanghai M&G Charity Foundation continued to give play to the superior resources of the
Company highlighted and deeply engaged in rural art education special population development and
other public welfare activities and continued to further foster the “Golden Seed Plan” education
assistance program the “Art Education Plan” program the Autism Support Program and other public
welfare programs gathering forces from all walks of life to follow up on social topics to care for
children’s childhood and power the development of a harmonious society.For more details see the 2025 Environmental Social and Governance (ESG) Report disclosed by
the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 1 2026.XVI. Consolidation and Expansion of the Achievements of Poverty Alleviation and Rural
Revitalization
√ Applicable □ Not applicable
Poverty alleviation and rural revitalization activities Number/content Description
Total expenditure (RMB 0’000) 632
Of which: Funds (RMB 0’000) 30
Worth of supplies and materials (RMB 0’000) 600
Number of people benefited 811000
Way of support (by industrial development job creation Educational support
educational development etc.) i.e. assisting schools
60 / 233Annual Report 2025
in carrying out
relevant educational
activities
Detailed description
√ Applicable □ Not applicable
The Shanghai M&G Charity Foundation actively responded to the state’s call for rural art
education integrated social resources and initiated the Art Education Plan based on the status quo of
scattered resources for art education promoting the creation of industrial ecology for rural art education
for children and beefing up rural revitalization and local art quality through art education. The program
has joined hands with many partners to bring M&G Public Welfare Art Class to 960 rural primary
schools and 110 community children’s service stations. It has also promoted the in-depth integration of
business strengths and public welfare by launching the “Red Scarf’s Love for the Motherland” Painting
Competition which has attracted the participation of more than 500 primary and secondary schools and
collected 170000 painting works.XVII. Others
□ Applicable √ Not applicable
61 / 233Annual Report 2025
Section V Major Events
I. Performance of Undertakings
(I) Undertakings by the Company’s beneficial controllers shareholders related parties acquirers the Company and other related parties during or
subsisted in the Reporting Period
√ Applicable □ Not applicable
If not
Whether If not
performed
Whether strictly performed
Background in time
Type of Undertaking Time of the there is Term of the performed in time
of Contents of the undertaking describe
undertakings party undertaking deadline for undertaking in a describe
undertakings the
performance timely plans in
specific
manner next steps
reasons
Undertaking for restriction on sale of shares and voluntary lockup undertaking by Keying Investment
Keying and Jiekui Investment shareholders holding more than 5% of the equity
Restriction
Investment (1) The proportion of shares unlocked every year shall not exceed 25% of the total shares held by the April 22
on sale of No Permanent Yes
Jiekui Company; 2014
shares
Investment (2) Notwithstanding any change in the position of some of the partners in the joint venture or their
departure from the joint venture the joint venture will strictly perform the above undertakings.Shareholding and intention to reduce shareholding of the controlling shareholder—M&G Group
(1) M&G Group advocates that shares of the Company should be held in the long term to ensure that
M&G Group shares operation achievements of the Company on a continuous basis. Therefore M&G Group
M&G has the intention to hold shares of the Company for a long term. April 22
Others No Permanent Yes
Group (2) If M&G Group intends to reduce shareholding of the Company it will announce its reduction plan 3 2014
transaction days before reducing the shareholding. Furthermore the reduction will be performed legally
according to rules of Shanghai Stock Exchange in the form of block trade auction transaction as well as
Undertakings other methods recognized by China Securities Regulatory Commission.related to Shareholding and intention to reduce shareholding of Keying Investment and Jiekui Investment
initial public shareholders holding more than 5% of the equity
offering (1) The joint venture which is an employee-owned enterprise established by officials and important
Keying business professionals of the Company advocates that shares of the Company should be held in the long
Investment term to ensure that operation achievements of the Company are shared on a continuous basis. Therefore the April 22
Others No Permanent Yes
Jiekui joint venture has the intention to hold shares of the Company for a long term. 2014
Investment (2) If the joint venture intends to reduce shareholding of the Company it will announce its reduction
plan 3 transaction days before reducing the shareholding. Furthermore the reduction will be performed
legally according to rules of Shanghai Stock Exchange in the form of block trade auction transaction as well
as other methods recognized by China Securities Regulatory Commission.M&G Undertaking in relation to non-competition by M&G Group Keying Investment and Jiekui Investment
Address Group (1) The enterprise and other enterprises (except the Company and enterprises controlled by it)
competition Keying controlled and (or) invested by it currently have not engaged in any form of business or activity that February
No Permanent Yes
between Investment constitutes or may constitute a direct or indirect competition relationship with principal businesses of the 15 2012
counterparts and Company and enterprises controlled by it.Jiekui (2) After the initial public offering and listing of the Company the enterprise and other enterprises
62 / 233Annual Report 2025
Investment (except the Company and enterprises controlled by it) controlled and (or) invested by it will not:
* engage in any form of business or activity that constitutes or may constitute a direct or indirect
competition relationship with current or future principal businesses that the Company and enterprises
controlled by it specialize in;
* support other enterprises other than the Company and enterprises controlled by it in any form of
business or activity that constitutes or may constitute a direct or indirect competition relationship with
current or future principal businesses that the Company and enterprises controlled by it specialize in;
* interfere in any form of business or activity that constitutes or may constitute a direct or indirect
competition relationship with current or future principal businesses that the Company and enterprises
controlled by it specialize in.Apart from the aforesaid undertaking the enterprise further guarantees that it will
* ensure its independence in assets businesses employees finance and institution according to
relevant rules of laws and regulations;
* adopt legal and effective measures to stop companies enterprises and other economic organizations
that the enterprise has control right from engaging directly or indirectly in the same or similar businesses
with the Company;
* not take advantage of its position as the controlling shareholder of the Company to carry out any
other activities that may harm the rights of the Company and other shareholders.Undertaking in relation to non-competition by beneficial controllers—Chen Huwen Chen Huxiong
and Chen Xueling
(1) I currently hold no position in other companies or economic organizations that have the same or
similar business with the Company or enterprises controlled by it.
(2) Other enterprises (except the Company and enterprises controlled by it) which are controlled by me
independently and/ or in which I am one of the beneficial shareholders currently have not engaged in any
form of business or activity that constitutes or may constitute a direct or indirect competition relationship
with principal businesses of the Company and enterprises controlled by it.
(3) After the initial public offering and listing of the Company other enterprises (except the Company
and enterprises controlled by it) which are controlled by me independently and/ or in which I am one of the
beneficial shareholders will not:
Chen * engage in any form of business or activity that constitutes or may constitute a direct or indirect
Address Huwen competition relationship with current or future principal businesses that the Company and enterprises
competition Chen controlled by it specialize in; February
between Huxiong * support other enterprises other than the Company and enterprises controlled by it in any form of
No Permanent Yes
152012
counterparts and Chen business or activity that constitutes or may constitute a direct or indirect competition relationship with
Xueling current or future principal businesses that the Company and enterprises controlled by it specialize in;
* interfere in any form of business or activity that constitutes or may constitute a direct or indirect
competition relationship with current or future principal businesses that the Company and enterprises
controlled by it specialize in.Apart from the aforesaid undertaking I further guarantee that I will:
* ensure its independence in assets businesses employees finance and institution according to
relevant rules of laws and regulations;
* adopt legal and effective measures to stop companies enterprises and other economic organizations
that I have control right from engaging directly or indirectly in the same or similar businesses with the
Company;
* not take advantage of the position as the beneficial controller of the Company to carry out any other
activities that may harm the rights of the Company and other shareholders.
63 / 233Annual Report 2025
Undertaking on the binding measures in case of the failure to fulfill the undertaking by M&G
Stationery
(1) The Company will strictly perform various obligations and responsibilities set out in all public
undertaking issues in the initial public offering and listing.
(2) If the Company fails to perform various obligations and responsibilities set out in the undertaking
issues the Company undertakes to take the following measures for restrictions:
* Compensate public investors for direct losses suffered by relying on relevant undertakings to
implement transactions through self-owned capital with the amount of compensation being determined
M&G April 22
Others according to negotiation between the Company and investors or the method or amount determined by the No Permanent Yes
Stationery 2014
securities supervision and administration department and the judicial authority;
* Within 12 months after the date when the Company fully eliminates the adverse effect due to failure
on related undertaking issues the Company shall not issue securities including but not limited to shares
corporate bonds convertible corporate bonds and other types of securities approved by securities regulatory
authorities;
* The Company shall not increase the salary or allowance of our directors supervisors and senior
management in any form until the Company has fully eliminated the adverse effect due to failure on related
undertaking issues.Undertaking on the binding measures in case of the failure to fulfill the undertaking by the controlling
shareholder—M&G Group
(1) M&G Group will strictly perform various obligations and responsibilities set out in all public
undertaking issues in the initial public offering and listing of M&G Stationery.
(2) If M&G Group fails to perform various obligations and responsibilities set out in the aforesaid
M&G undertaking issues M&G Group undertakes to take the following measures for restrictions: April 22
Others
Group *
No Permanent Yes
Compensate public investors for direct losses suffered by relying on relevant undertakings to 2014
implement transactions through self-owned capital with the amount of compensation being determined
according to negotiation between M&G Group and investors or the method or amount determined by the
securities regulatory authorities and the judicial authority;
* The lockup period of M&G Stationery’s shares held by M&G Group will be automatically extended
to the date when M&G Group fully eliminates the adverse effect due to failure on related undertaking issues.Undertaking on the binding measures in case of the failure to fulfill the undertaking by beneficial
controllers—Chen Huwen Chen Huxiong and Chen Xueling
(1) I will strictly perform various obligations and responsibilities set out in all public undertaking issues
in the initial public offering and listing of M&G Stationery.
(2) If I fail to perform various obligations and responsibilities set out in the aforesaid undertaking
Chen issues I undertake to take the following measures for restrictions:
Huwen * Compensate public investors for direct losses suffered by relying on relevant undertakings to
Chen implement transactions through self-owned capital with the amount of compensation being determined April 22
Others No Permanent Yes
Huxiong according to negotiation between investors and me or the method or amount determined by the securities 2014
and Chen regulatory authorities and the judicial authority;
Xueling * The lockup period of M&G Stationery’s shares held by me directly or indirectly will be
automatically extended to the date when I fully eliminate the adverse effect due to failure on related
undertaking issues.* I shall not require M&G Stationery to increase my salary or allowance in any form nor shall I
accept the increase of salary or allowance by M&G Stationery in any form until I have fully eliminated the
adverse effect due to failure on related undertaking issues.Others Keying Undertaking on the binding measures in case of the failure to fulfill the undertaking by Keying April 22 No Permanent Yes
64 / 233Annual Report 2025
Investment Investment and Jiekui Investment shareholders holding more than 5% of the equity 2014
Jiekui (1) The joint venture will strictly perform various obligations and responsibilities set out in all public
Investment undertaking issues in the initial public offering and listing of M&G Stationery.
(2) If the joint venture fails to perform various obligations and responsibilities set out in the aforesaid
undertaking issues the joint venture undertakes to take the following measures for restrictions:
* Compensate public investors for direct losses suffered by relying on relevant undertakings to
implement transactions through self-owned capital with the amount of compensation being determined
according to negotiation between the joint venture and investors or the method or amount determined by the
securities regulatory authorities and the judicial authority;
* The lockup period of M&G Stationery’s shares held by the joint venture will be automatically
extended to the date when the joint venture fully eliminates the adverse effect due to failure on related
undertaking issues.
65 / 233Annual Report 2025
(II) Where the Company has profit forecasts on assets or projects and the Reporting Period was
within the term of profit forecasts the Company has to state whether such profit forecasts on
assets or projects are fulfilled and the reasons thereof
□Fulfilled □Unfulfilled √ Not applicable
(III) Performance undertakings
□ Applicable √ Not applicable
Changes to performance undertakings
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
II. Non-operating Misappropriation of Funds of the Company by any Controlling Shareholders
and Their Related Parties during the Reporting Period
□ Applicable √ Not applicable
III. Illegal Guarantee
□ Applicable √ Not applicableIV. Explanation of the Company’s Board of Directors on the “Auditor’s Report with ModifiedAudit Opinions” Issued by the CPA
□ Applicable √ Not applicable
V. Analysis and Explanation from the Company on the Reasons and Impact of the Change of
Accounting Policies Accounting Estimates or Correction on Significant Accounting Errors
(I) Analysis and explanation from the Company on the reasons and impact of the change of
accounting policies or accounting estimates
□ Applicable √ Not applicable
(II) Analysis and explanation from the Company on the reasons and impact of the correction on
significant accounting errors
□ Applicable √ Not applicable
(III) Communication with the previous accounting firm
□ Applicable √ Not applicable
(IV) Approval process and other descriptions
□ Applicable √ Not applicable
VI. Appointment and Dismissal of the Accounting Firm
Unit: 0’000 Currency: RMB
Current accounting firm
Name of domestic accounting firm BDO China Shu Lun Pan CPAs (LLP)
Remuneration of domestic accounting firm 170
Term of office of domestic accounting firm 16
Names of certified public accountants of domestic
Chen Luying and Yuan Yang
accounting firm
How many consecutive years the certified public Chen Luying: 5 years
accountants of the domestic accounting firm have Yuan Yang: 1 year
66 / 233Annual Report 2025
provided audit service for the Company
Name Remuneration
Internal control audit accounting firm BDO China Shu Lun Pan CPAs (LLP) 90
Explanation on appointment and dismissal of the accounting firm
√ Applicable □ Not applicable
During the Reporting Period the BDO China Shu Lun Pan CPAs (LLP) was re-appointed as the audit
institution.Explanation on the change of accounting firm during the auditing period
□ Applicable √ Not applicable
Explanation on any over 20% (inclusive) reduction in audit fee compared to last year
□ Applicable √ Not applicable
VII. Risk of Suspension of Listing
(I) Causes of suspension of listing
□ Applicable √ Not applicable
(II) Measures to be taken by the Company
□ Applicable √ Not applicable
(III) Situation and causes for termination of listing
□ Applicable √ Not applicable
VIII. Matters Related to Bankruptcy and Reorganization
□ Applicable √ Not applicable
IX. Material Litigation and Arbitration
□ The Company had material litigation and arbitration during the year
√ The Company did not have material litigation and arbitration during the year
X. Suspected Violation of Laws and Regulations Punishment and Rectification to the Listed
Company Its Directors Senior Management Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XI. Explanation on Credibility Status of the Company Its Controlling Shareholders and Beneficial
Controllers during the Reporting Period
□ Applicable √ Not applicable
XII. Major Related-party Transactions
(I) Related-party transactions in relation to daily operation
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□ Applicable √ Not applicable
2. Events disclosed in temporary announcements and with further progress or change in
subsequent implementation
√ Applicable □ Not applicable
The 10th meeting of the 6th session of Board of Directors and 2024 Annual General Meeting of
Shareholders of the Company considered and approved the Proposal on the Expected Daily
67 / 233Annual Report 2025
Related-party Transactions in 2025 and issued the Announcement on the Expected Daily Related-party
Transactions in 2025 (number: 2025-008) on March 26 2025.In 2025 the estimated income from the Company’s selling goods to the sales entities controlled by
Guo Shaomin amounted to RMB314210000.00 and the estimated income from Jiumu Store’s selling
goods to Rising Goal Investments Pte. Ltd. amounted to RMB68000000.00. It was estimated that fees
for the Company’s leasing the properties of M&G Group (including office buildings workshops
parking space warehouses and dormitories) amounted to RMB4621000.00; and utilities amounted to
RMB6000000.00. It was estimated that the expenses incurred by Colipu Group in leasing M&G
Group’s office building and parking space amounted to RMB17959000.00 the expenses incurred by
Colipu Information Technology in leasing M&G Group’s office building amounted to
RMB3126000.00 and the expenses incurred by Qizhihaowan in leasing M&G Group’s office building
and parking space amounted to RMB1748000.00.In 2025 the actual income from the Company’s selling goods to the sales entities controlled by
Guo Shaomin amounted to RMB256305112.44 and the actual income from Jiumu Store’s selling
goods to Rising Goal Investments Pte. Ltd. amounted to RMB52097285.65. The actual fees for the
Company’s leasing the properties of M&G Group (including office buildings workshops parking space
warehouses and dormitories) amounted to RMB4620952.40; and utilities amounted to
RMB5452226.33. The actual expenses incurred by Colipu Group in leasing M&G Group’s office
building and parking space amounted to RMB16221781.48 the actual expenses incurred by Colipu
Information Technology in leasing M&G Group’s office building amounted to RMB2813180.14 and
the actual expenses incurred by Qizhihaowan in leasing M&G Group’s office building and parking space
amounted to RMB1784941.40.
3. Events not disclosed in temporary announcements
□ Applicable √ Not applicable
(II) Related transactions as a result of acquisition and disposal of assets or equity
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□ Applicable √ Not applicable
2. Events disclosed in temporary announcements and with further progress or change in
subsequent implementation
□ Applicable √ Not applicable
3. Events not disclosed in temporary announcements
□ Applicable √ Not applicable
4. Disclosable performance achievements during the Reporting Period when involved with
agreed-upon performance
□ Applicable √ Not applicable
(III) Major related transactions in joint external investment
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□ Applicable √ Not applicable
2. Events disclosed in temporary announcements and with further progress or change in
subsequent implementation
□ Applicable √ Not applicable
68 / 233Annual Report 2025
3. Events not disclosed in temporary announcements
□ Applicable √ Not applicable
(IV) Creditor’s rights and debts with related parties
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□ Applicable √ Not applicable
2. Events disclosed in temporary announcements and with further progress or change in
subsequent implementation
□ Applicable √ Not applicable
3. Events not disclosed in temporary announcements
□ Applicable √ Not applicable
(V) Financial business between the Company and the affiliated financial companies the
Company’s holding financial company and the related party
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. Material Contracts and Their Performance
(I) Trusteeship contracting and leasing matters
1. Trusteeship
□ Applicable √ Not applicable
2. Contracting
□ Applicable √ Not applicable
3. Leasing
□ Applicable √ Not applicable
(II) Guarantees
□ Applicable √ Not applicable
(III) Entrusting others to manage cash assets
1. Entrusted wealth management
(1) Overall condition of entrusted wealth management
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Overdue uncollected
Type Risk characteristic Undue balance
amount
Bank’s wealth
Low risk 400000
management product
Others
□ Applicable √ Not applicable
69 / 233Annual Report 2025
(2) Individual entrusted wealth management
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Provision for the impairment of entrusted wealth management
□ Applicable √ Not applicable
2. Entrusted loans
(1) Overall condition of entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(2) Individual entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Provision for the impairment of entrusted loans
□ Applicable √ Not applicable
3. Others
□ Applicable √ Not applicable
(IV) Other material contracts
□ Applicable √ Not applicable
XIV. Progress on the use of raised capital
□ Applicable √ Not applicable
XV. Explanation of Other Major Events that Have a Material Impact on Investors’ Value
Judgments and Investment Decisions
□ Applicable √ Not applicable
70 / 233Annual Report 2025
Section VI Changes in Shares and Shareholders
I. Changes in Share Capital
(I) Statement of changes in shares
1. Statement of changes in shares
Unit: share
Before the change Increase/decrease of the change (+ -) After the change
Issue
Capital
Percentage of Bonus Percentage
Quantity reserve-converted Others Subtotal Quantity
(%) new shares (%)
shares
shares
I. Restricted shares
1. State-owned shares
2. Shares held by state-owned legal
person
3. Other domestic shares
Including: Shares held by domestic
non-state-owned legal person
Shares held by domestic
natural person
4. Overseas shares
Including: Shares held by foreign
legal person
Shares held by overseas
natural person
II. Non-restricted circulating shares 923828420 100.00 -2858043 -2858043 920970377 100.00
1. Ordinary RMB shares 923828420 100.00 -2858043 -2858043 920970377 100.00
2. Domestically listed foreign shares
3. Overseas listed foreign shares
4. Others
III. Total number of shares 923828420 100.00 -2858043 -2858043 920970377 100.00
2. Explanation of changes in shares
√ Applicable □ Not applicable
The Company convened the 10th meeting of the 6th Board of Directors on March 24 2025 and the
2024 Annual General Meeting of Shareholders on April 16 2025 respectively at which the Proposal on
Re-purposing Part of the Repurchased Shares and Retiring Such Shares was reviewed and approved. It
was approved that the purpose of the repurchased shares under the 2022 Share Repurchase Plan held inthe special securities account for repurchased shares be changed from “to be used for equity incentivesor employee stock ownership plans” to “to be retired and to reduce the registered capital accordingly”.Specifically the Company will retire 2858043 shares in the special securities account for repurchased
shares and reduce its registered capital accordingly. Upon completion of the said repurchase and
retirement the total share capital of the Company will be reduced from 923828420 shares to
920970377 shares.
3. Impact of changes in shares on the earnings per share net asset value per share and other
financial indicators in the last year and period (if any)
√ Applicable □ Not applicable
(1) Basic earnings per share
Basic earnings per share are based on the combined net profit attributable to the ordinary
shareholders of the parent company divided by the weighted mean of the Company’s outstanding
ordinary shares:
Unit: Yuan Currency: RMB
Amount in the current Amount in the last
Item
period period
Combined net profit attributable to ordinary shareholders of the parent company 1310448991.96 1395844392.50
Weighted mean of the Company’s outstanding ordinary shares 915984543.67 920590793.67
Basic earnings per share 1.4306 1.5162
Including: Basic earnings per share from continuing as a going concern 1.4306 1.5162
71 / 233Annual Report 2025
Basic earnings per share from not continuing as a going concern
(2) Diluted earnings per share
Diluted earnings per share are based on the combined net profit (diluted) attributable to the ordinary
shareholders of the parent company divided by the weighted mean (diluted) of the Company’s
outstanding ordinary shares:
Unit: Yuan Currency: RMB
Item Amount in the current Amount in the
period last period
Combined net profit (diluted) attributable to ordinary shareholders of the parent
1310448991.961395844392.50
company
Weighted mean of the Company’s outstanding ordinary shares(diluted) 915984543.67 920590793.67
Diluted earnings per share 1.4306 1.5162
Including: Diluted earnings per share from continuing as a going concern 1.4306 1.5162
Diluted earnings per share from not continuing as a going concern
4. Other contents that the Company deems necessary and the securities regulatory authorities
require disclosing
□ Applicable √ Not applicable
(II) Changes in restricted shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
(I) Issuance of securities as at the Reporting Period
□ Applicable √ Not applicable
Explanation on issuance of securities as at the Reporting Period (please provide separate explanation on
the bonds with different interest rates during their duration):
□ Applicable √ Not applicable
(II) Changes in the total number of ordinary shares and shareholder structure of the Company
and changes in the structure of assets and liabilities of the Company
□ Applicable √ Not applicable
(III) Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholder and Beneficial Controller
(I) Total number of shareholders
Total number of shareholders of ordinary shares as at the end of the Reporting Period 40286
Total number of shareholders of ordinary shares at the end of last month prior to the
39889
disclosure date of this annual report
Total number of shareholders of preferred shares whose voting rights have been
0
restored as at the end of the Reporting Period
Total number of shareholders of preferred shares whose voting rights have been
0
restored at the end of last month prior to the disclosure date of this annual report
(II) Table of shareholdings of the top ten shareholders and the top ten public shareholders (or
unrestricted shareholders) as at the end of the Reporting Period
Unit: share
Shareholdings of the top ten shareholders (exclusive of shares lent in refinancing)
72 / 233Annual Report 2025
Pledged
Number
Number of marked or
Change during of Nature of
Name of shareholder shares held as at Percenta frozen
the Reporting restricte sharehold
(full name) the end of the ge (%) Status
Period d shares Quan er
period of
held tity
share
Domestic
nonstate-o
M&G Holdings (Group) Co. Ltd. 0 536000000 58.20 0 No 0 wned
legal
person
Hong Kong Securities Clearing
7843398 37452145 4.07 0 No 0 Others
Company Limited
Industrial and Commercial Bank of
China Limited-Invesco Great Wall
Emerging Mature and HybridEquity Investment Funds（中国工 0 31500000 3.42 0 No 0 Others商银行股份有限公司－景顺长城新兴成长混合型证券投资基金）
Bank of China Limited-Invesco
Great Wall Ding Yi Hybrid
Security Investment Fund (LOF) 0 15000002 1.63 0 No 0 Others
（中国银行股份有限公司－景顺长城鼎益混合型证券投资基金）
Domestic
Chen Huxiong 0 13609300 1.48 0 No 0 natural
person
Domestic
Chen Huwen 0 13609300 1.48 0 No 0 natural
person
Shanghai Keying Investment
-3290600 11371958 1.23 0 No 0 Others
Management Office (L.P.)
Shanghai Jiekui Investment
-3248400 11245500 1.22 0 No 0 Others
Management Firm (L.P.)
Kuwait Investment Authority－
-4499400 7649152 0.83 0 No 0 Others
Own Capital
China Construction Bank
Corporation －Lombarda China
Senior Care Industry Mixed
-3229519 7193903 0.78 0 No 0 Others
Securities Investment Fund (中国
建设银行股份有限公司－中欧养
老产业混合型证券投资基金)
Shareholdings of the top ten unrestricted shareholders (exclusive of shares lent in refinancing)
Number of unrestricted public shares Type and number of shares
Name of shareholder
held Type Number
Ordinary
M&G Holdings (Group) Co. Ltd. 536000000 RMB 536000000
Shares
Ordinary
Hong Kong Securities Clearing Company Limited 37452145 RMB 37452145
Shares
Industrial and Commercial Bank of China
Limited-Invesco Great Wall Emerging Mature and OrdinaryHybrid Equity Investment Funds（中国工商银行股份 31500000 RMB 31500000有限公司－景顺长城新兴成长混合型证券投资基 Shares
金）
Bank of China Limited-Invesco Great Wall Ding Yi OrdinaryHybrid Security Investment Fund (LOF)（中国银行股 15000002 RMB 15000002份有限公司－景顺长城鼎益混合型证券投资基金） Shares
Ordinary
Chen Huxiong 13609300 RMB 13609300
Shares
73 / 233Annual Report 2025
Ordinary
Chen Huwen 13609300 RMB 13609300
Shares
Ordinary
Shanghai Keying Investment Management Office
11371958 RMB 11371958
(L.P.)
Shares
Ordinary
Shanghai Jiekui Investment Management Firm (L.P.) 11245500 RMB 11245500
Shares
Ordinary
Kuwait Investment Authority－Own Capital 7649152 RMB 7649152
Shares
China Construction Bank Corporation －Lombarda
Ordinary
China Senior Care Industry Mixed Securities
7193903 RMB 7193903
Investment Fund (中国建设银行股份有限公司－中
Shares
欧养老产业混合型证券投资基金)
Special repurchase account of the top ten shareholders Not applicable
Explanation on the above-mentioned shareholders’
entrusting voting rights accepting voting rights Not applicable
entrusted and waiver of voting rights
There is related relationship among the shareholders—M&G Group
Keying Investment Jiekui Investment Chen Huwen and Chen
Huxiong. Chen Huwen and Chen Huxiong are parties acting in concert.Explanation on the related relationship or parties acting
Save as the above the Company is not aware of any related relationship
in concert among the above shareholders
or parties acting in concert as set out in Measures for the
Administration of the Takeover of Listed Companies among the
aforesaid shareholders.Explanation on the preference shareholders with voting
Not applicable
rights restored and their shareholdings
5% or greater shareholders top ten shareholders and top ten unrestricted public shareholders involved in
refinancing shares lending
□ Applicable √ Not applicable
Changes in the top ten shareholders and top ten unrestricted public shareholders compared with the prior
period due to refinancing shares lending/returning
□ Applicable √ Not applicable
Shareholdings of the top ten restricted shareholders and the restrictions
□ Applicable √ Not applicable
(III) Strategic investors or general legal persons becoming the top ten shareholders because of
placing of new shares
□ Applicable √ Not applicable
IV. Controlling Shareholder and Beneficial Controllers
(I) Controlling shareholder
1. Legal person
√ Applicable □ Not applicable
Name M&G Holdings (Group) Co. Ltd.Person in charge of the Company or legal
Chen Huxiong
representative
Establishment date 2007-5-10
Industrial investment infrastructure investment consultation for
investment information (except broker) consultation for enterprise
management and relevant businesses domestic trade (excluding projects
Main operation businesses
with national special approval) [For items subject to approval pursuant to
laws business activities shall be carried out only after approval by the
relevant competent authorities.]
Equity interests of other domestic and No
74 / 233Annual Report 2025
overseas listed companies controlled or
invested during the Reporting Period
Other explanations No
2. Natural person
□ Applicable √ Not applicable
3. Special explanation on the Company not having controlling shareholders
□ Applicable √ Not applicable
4. Explanation of the change in controlling shareholders during the Reporting Period
□ Applicable √ Not applicable
5. Diagram of the ownership and controlling relationship between the Company and its
controlling shareholders
√ Applicable □ Not applicable
M&G Group
58.20%
M&G Stationery
(II) Beneficial controllers
1. Legal person
□ Applicable √ Not applicable
2. Natural person
√ Applicable □ Not applicable
Name Chen Huwen
Nationality China
Acquire right of residence in other countries
Yes
or regions or not
Chairman of the Board of Shanghai M&G Stationery
Main job and title
Inc.Shareholdings in other domestic or overseas
No
listed companies over the past 10 years
Name Chen Huxiong
Nationality China
Acquire right of residence in other countries
Yes
or regions or not
Vice-chairman of the Board and CEO of Shanghai
Main job and title
M&G Stationery Inc.Shareholdings in other domestic or overseas
No
listed companies over the past 10 years
Name Chen Xueling
75 / 233Annual Report 2025
Nationality China
Acquire right of residence in other countries
No
or regions or not
Chairman of the Board and vice president of Shanghai
Main job and title
M&G Stationery Inc.Shareholdings in other domestic or overseas
No
listed companies over the past 10 years
3. Special explanation on the Company not having beneficial controllers
□ Applicable √ Not applicable
4. Explanation of the change of the Company’s control during the Reporting Period
□ Applicable √ Not applicable
5. Diagram of the ownership and controlling relationship between the Company and its
beneficial controllers
√ Applicable □ Not applicable
Chen Chen Chen
Xueling Huwen Huxiong
0.66%1.48%1.48%
M&G Keying Jiekui
Group Investment Investment
58.20%1.23%1.22%
M&G
Stationery
6. Control of the Company by beneficial controllers by way of trust or other means of asset
management
□ Applicable √ Not applicable
(III) Other explanation regarding the controlling shareholders and the beneficial controllers
□ Applicable √ Not applicable
V. The Total Shares Pledged by the Controlling Shareholder or the First Majority Shareholder and
the Person Acting in Concert Account for More Than 80% of the Company’s Shares Held by
Them
□ Applicable √ Not applicable
76 / 233Annual Report 2025
VI. Other Legal Person Shareholders with More Than 10% Shareholdings
□ Applicable √ Not applicable
VII. Explanation on Limitation on Reduction of Shareholding
□ Applicable √ Not applicable
VIII. Implementation of Share Repurchase during the Reporting Period
√ Applicable □ Not applicable
Unit: 00’000’000 Currency: RMB
Plan for Share Repurchase through the Stock
Name of the share repurchase plan
Exchange
Date of the disclosure of the share repurchase plan 28 August 2024
Number of shares to be repurchased and that as %
0.39-0.77
of the total share capital
Amount to be used for the share repurchase 1.5-3.0
Within 6 months starting from the date of the
Planned repurchase period share repurchase plan’s approval at the 8th
meeting of the 6th session of Board of Directors
To be used as equity incentives or in employee
Purpose of the repurchased shares
stock ownership plans
Number of shares that have been repurchased 1725000
Number of shares that have been repurchased as %
of the total underlying shares of the equity incentive
plan (if any)
Progress on reduction of repurchased shares through
Not applicable
the stock exchange
IX. Preferred Shares
□ Applicable √ Not applicable
77 / 233Annual Report 2025
Section VII Bonds
I. Corporate Bonds (Including Enterprise Bonds) and Non-financial Enterprise Debt Financing
Instruments
□ Applicable √ Not applicable
II. Convertible Corporate Bonds
□ Applicable √ Not applicable
78 / 233Annual Report 2025
Section VIII Financial Report
I. Auditor’s Report
√ Applicable □ Not applicable
Xin Kuai Shi Bao Zi [2026] No. ZA10648
To the shareholders of Shanghai M&G Stationery Inc.:
I. Audits’ Opinion
We have audited the accompanying financial statements of Shanghai M&G Stationery Inc.(hereinafter referred to as “M&G”) which comprise the consolidated and parent company’s balance
sheets as at December 31 2025 the consolidated and parent company’s income statements the
consolidated and parent company’s cash flow statements and the consolidated and parent company’s
statements of changes in shareholders’ equity for the year of 2025 as well as notes to financial
statements.In our opinion the accompanying financial statements were prepared in accordance with the
Accounting Standards for Business Enterprises in all material aspects and give a true and fair view of the
consolidated and parent company’s financial position of M&G as at December 31 2025 and of its
consolidated and parent company’s operating results and cash flows for the year of 2025.II. Basis of Auditors’ Opinion
We have conducted our audit in accordance with the Chinese Auditing Standards for CertifiedPublic Accountants. The “Responsibilities of Certified Public Accountants for Auditing of FinancialStatements” in the auditor’s report further illustrate our responsibilities under those standards. In
accordance with China Registered Accountants Independence Standards No. 1 – Independence
Requirements for Financial Statement Audit and Review Engagements and the Code of Professional
Ethics of Chinese Certified Public Accountants we are independent of M&G and have performed other
responsibilities in respect of professional ethics. We have complied with the independence requirements
applicable to audits of public interest entities in our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements for the current period. These matters were addressed in the context
of our audit of the financial statements as a whole and in forming our opinion thereon we do not
provide a separate opinion on these matters.The key audit matters identified in our audit are summarized as follows:
Key audit matters How our audit addressed the key audit matter
(I) Recognition of the revenue
Please refer to notes to financial statements for 1. We understood and evaluated design of the key internalaccounting policies set out in “III Significant control designed by management and we tested theAccounting Policies and Accounting Estimates” effectiveness of implementing key controls;(XXVI) and “V Notes to Consolidated Financial 2. We inspected customer contracts on a sample basis toStatements” (XLIII). identify terms and conditions related to the transfer of control
M&G mainly specializes in selling stationery and over the goods and assessed the timing of revenue
office supplies. recognition with reference to the requirements of prevailing
In 2025 M&G’s revenue from principal business accounting standards;
in sales recognition amounted to 3. We selected samples for revenue transactions recorded
RMB25004637500. during the current year with invoices sales contracts goods
79 / 233Annual Report 2025
M&G recognized revenue based on the expected delivery notes or transport documents to assess whether the
amount of consideration that it is entitled to related revenue was recognized in accordance with M&G’s
receive when the customer obtains control of the revenue recognition accounting policies;
relevant products or services. 4. We performed analytical procedures on revenue and cost
Since revenue is one of the key performance including analysis of revenue cost gross profit margin
indicators of M&G there is possibly inherent risk fluctuations in each month of the current period and
of inappropriately recognizing revenue to reach performed analysis on sales model to observe whether there is
specific purpose in revenue recognition made any abnormal transaction;
based on the sales group of distributor; there is 5. We took samples from revenue transactions that took place
possibly potential risk of material misstatement in shortly before and after the balance sheet date by checking
revenue recognition made based on the sales group delivery orders and other supportive documents to assess
of end customer because it involves many whether revenue was recognized in the correct accounting
transactions with small amount for each period;
transaction so we recognized revenue recognition 6. We evaluated the accuracy and authenticity of the revenue
as a key audit matter. amount by implementing the letter verification procedure
based on the balances of accounts receivable from major
customers and checking goods return after the period.(II) Anticipated credit loss of accounts receivable
Please refer to notes to financial statements for
1. We understood and evaluated design of the key internalaccounting policies set out in “III Significantcontrol regarding impairment of financial assets (includingAccounting Policies and Accounting Estimates”
accounts receivable) designed by management and we tested(X) and “V Notes to Consolidated Financialthe effectiveness of implementing key controls;Statements” (IV).
2. We evaluated rationality of the estimation on anticipated
As at December 31 2025 balance of accounts
credit loss of accounts receivable including judgment of
receivable amounted to RMB4673738000 and
forward-looking information; basis of estimation on
provision made for credit impairment loss of
anticipated credit loss made on a single item and basis of
accounts receivable amounted to RMB96202500.estimation on anticipated credit loss made on portfolio
M&G measured provision for loss of accounts
including rationality of the division for portfolio;
receivable in accordance with amount of
3. We reviewed credit risk assessment performed by the
anticipated credit loss in the entire lifetime. The
management on internal and external environment of M&G’s
anticipated credit loss requires the management to
operation integrity of different customers repayment history
take into consideration of forward-looking
repayment capacity and historical experience in credit loss;
information apart from combining historical
4. We recalculated to check whether measurement of
experience and current situations involving lots of
provision for loss made by the management on single and
estimation and judgment so we recognized
portfolio accounts receivable is consistent with the amount of
anticipated credit loss of accounts receivable as a
anticipated credit loss in the entire existing period.key audit matter.IV. Other Information
The management of M&G (hereinafter referred to as the “management”) is responsible for the other
information which comprises all the information covered in M&G 2025 Annual Report other than the
financial statements and this auditor’s report.Our audit opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In conjunction with our audit to the financial statements our responsibility is to read the other
information. During the process we considered whether there is material inconsistency or there is likely
material misstatement between the other information and the financial statements or the information we
obtained during the audit.
80 / 233Annual Report 2025
As we have performed the work on the other information obtained before the date of our auditor’s
report we shall report if we confirmed there was a material misstatement among the other information.We have nothing needed to be reported on this case.V. Responsibilities of the Management and Governing Bodies for the Financial Statements
The management shall be responsible for the preparation of financial statements in accordance with
the Accounting Standards for Business Enterprises to enable them to be fairly reflected and to design
implement and maintain the necessary internal controls so that there is no material misstatement due to
fraud or error in the financial statements.In the preparation of the financial statements the management is responsible for assessing M&G’s
continuous operating capacity disclosing matters relating to continuous operations (if applicable) and
applying the continuing operating assumptions unless the management plans to perform liquidation
cease operation or otherwise has no realistic choice.The governing bodies are responsible for overseeing the financial reporting process of M&G.VI. Responsibilities of CPA for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance of the financial statements as a whole whether there
is a material misstatement due to fraud or error and to issue an auditor’s report containing audit opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with China Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.As part of an audit in accordance with the auditing standards we exercised professional judgment
and maintained professional skepticism throughout the audit. We also performed the following works:
(1) to identify and assess the risks of material misstatement of the financial statements whether due
to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) to understand the internal control related to the audit to design the appropriate audit procedures.
(3)to evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(4) to draw a conclusion on the appropriateness of the management’s use of the going concern basis
of accounting and based on the audit evidence obtained whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the ability of M&G to continue as a going
concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However future events or conditions may cause M&G to cease to continue
as a going concern.
(5) to evaluate the overall presentation structure and content (including disclosure) of the financial
statements and to assess whether the financial statements reflect the related transactions and events
fairly.
(6) to obtain sufficient and appropriate audit evidence of the financial information of the entity or
business activity of the M&G in order to express an opinion on the consolidated financial statements.We are responsible for directing supervising and performing group audits. We take full responsibility
for the audit opinion.
81 / 233Annual Report 2025
We communicated with the governing bodies regarding among other matters the planned scope
and timing of the audit and significant audit findings including any significant deficiencies in internal
control that we identify during the audit.We also provided a statement to management on compliance with ethical requirements related to
independence and communicated with governing bodies about all relationships and other matters that
may be reasonably considered to affect our independence as well as related precautions (if applicable).From the matters we had discussed with the governing bodies we confirmed which matters were
most important to the audit of the financial statements for the current period and thus constituted the key
audit matters. We set out these matters in the auditor’s report. Unless the disclosure of these matters are
forbidden by the laws and regulations or in rare cases if it is reasonably expected that the negative
impacts caused by discussing certain matters in the auditor’s report would be larger than the benefits for
public interest we shall not disclose the matters in the auditor’s report under such circumstances.BDO China Shu Lun Pan CPAs Chinese Certified Public Accountant:
(LLP) (Engagement Partner)
Chinese Certified Public Accountant:
Shanghai* China March 30 2026
82 / 233Annual Report 2025
II. Financial Statements
Consolidated Balance Sheet
December 31 2025
Prepared by: Shanghai M&G Stationery Inc.Unit: Yuan Currency: RMB
Item Notes December 31 2025 December 31 2024
Current assets:
Cash and equivalents VII. 1 3981622540.50 4962217302.12
Transaction settlement funds
Lending funds
Held-for-trading financial assets VII. 2 4108620317.14 2569112993.22
Derivative financial assets
Bills receivable VII. 4 59999337.34 17425526.65
Accounts receivable VII. 5 4577535438.46 3860635417.76
Receivables financing VII. 7 31211919.98 28475371.64
Prepayment VII. 8 73305304.90 90743672.42
Premium receivable
Reinsurance premium receivable
Reserves for reinsurance contract
receivable
Other receivables VII. 9 272193803.53 238243332.88
Including: Interest receivable
Dividend receivable
Financial assets purchased under
agreements to resell
Inventories VII. 10 1669037168.03 1545866718.79
Including: Data resources
Contract assets
Held for sale assets
Non-current assets due within one
VII. 12 215660.65 862796.30
year
Other current assets VII. 13 152292696.29 243981456.14
Total current assets 14926034186.82 13557564587.92
Non-current assets:
Loans and advances to customers
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments VII. 17 35606521.84 33578115.08
Investments in other equity
VII. 18 10817798.40 10579958.34
instruments
Other non-current financial assets
Investment real estate VII. 20 46287368.81 51381912.17
Fixed assets VII. 21 1682453574.18 1527715803.59
Construction in progress VII. 22 44073444.33 148515963.08
Productive biological assets
Oil and gas assets
Right-of-use assets VII. 25 439544777.86 411719344.82
Intangible assets VII. 26 429114453.37 432067482.88
Including: Data resources
Development expenses
Including: Data resources
Goodwill VII. 27 105404838.99 63529740.20
Long-term prepaid expenses VII. 28 126263559.53 112797521.91
Deferred income tax assets VII. 29 224612360.53 217629784.10
Other non-current assets VII. 30 4753846.49 19704965.34
Total non-current assets 3148932544.33 3029220591.51
Total assets 18074966731.15 16586785179.43
Current liabilities:
83 / 233Annual Report 2025
Short-term borrowings VII. 32 245131111.12 341061169.83
Borrowings from central bank
Placements from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities VII. 34 46320.08
Bills payable
Accounts payable VII. 36 5980392579.19 5006486563.20
Accounts received in advance VII. 37 3378737.08
Contract liabilities VII. 38 142178051.39 143347403.44
Financial assets sold under
repurchase agreements
Deposits from customers and other
banks
Brokerage for trading securities
Brokerage for underwriting
securities
Employee benefits payable VII. 39 209831364.57 189490079.29
Taxes payable VII. 40 250015556.93 237312733.19
Other payables VII. 41 534646908.51 518745735.51
Including: Interest payable
Dividend payable
Fees and commissions payable
Reinsured accounts payable
Held-for-sale liabilities
Non-current liabilities due within
VII. 43 213429554.47 204601711.39
one year
Other current liabilities VII. 44 164408891.88 98936760.02
Total current liabilities 7743459075.22 6739982155.87
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings VII. 45 35998000.00 6000000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities VII. 47 214599529.16 199105187.71
Long-term payable
Long-term employee benefits
payable
Estimated liabilities VII. 50 500000.00 369927.50
Deferred income VII. 51 15887633.60 34963559.04
Deferred income tax liabilities VII. 29 187524882.52 170671488.51
Other non-current liabilities
Total non-current liabilities 454510045.28 411110162.76
Total liabilities 8197969120.50 7151092318.63
Owner’s equity (or shareholders’ equity):
Share capital VII. 53 920970377.00 923828420.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve VII. 55 714449171.29 840320493.39
Less: Treasury shares VII. 56 150041006.57 251095546.75
Other comprehensive income VII. 57 -590724.83 -11423451.31
Special reserve
Surplus reserve VII. 59 464201654.91 464201654.91
General risk provision
Undistributed profit VII. 60 7338681217.85 6944027602.89
Total equity attributable to the
9287670689.658909859173.13
owners of the parent company
Minority equity 589326921.00 525833687.67
Total owners’ equity (or
9876997610.659435692860.80
shareholders’ equity)
84 / 233Annual Report 2025
Total liabilities and owner’s
18074966731.1516586785179.43
equity (or shareholders’ equity)
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
Parent Company’s Balance Sheet
December 31 2025
Prepared by: Shanghai M&G Stationery Inc.Unit: Yuan Currency: RMB
Item Notes December 31 2025 December 31 2024
Current assets:
Cash and equivalents 987013921.54 2053563177.06
Held-for-trading financial assets 3084951651.14 2156713193.81
Derivative financial assets
Bills receivable
Accounts receivable XIX. 1 260358838.38 216971760.87
Receivables financing
Prepayment 9611049.73 10291736.91
Other receivables XIX. 2 521438557.39 1089091354.20
Including: Interest receivable
Dividend receivable
Inventories 337793756.06 361750498.85
Including: Data resources
Contract assets
Held for sale assets
Non-current assets due within one
215660.65862796.30
year
Other current assets 150404176.16 163630053.93
Total current assets 5351787611.05 6052874571.93
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments XIX. 3 1820563744.45 1678535337.69
Investments in other equity
10817798.4010579958.34
instruments
Other non-current financial assets
Investment real estate
Fixed assets 1185740976.20 1276904083.43
Construction in progress 36656986.67 46229563.79
Productive biological assets
Oil and gas assets
Right-of-use assets 47659883.78 34304378.56
Intangible assets 163134731.67 167834907.44
Including: Data resources
Development expenses
Including: Data resources
Goodwill
Long-term prepaid expenses 9577530.61 20578956.59
Deferred income tax assets 10599746.10 10988111.43
Other non-current assets 1614228.93 5978528.33
Total non-current assets 3286365626.81 3251933825.60
Total assets 8638153237.86 9304808397.53
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
85 / 233Annual Report 2025
Bills payable
Accounts payable 265662097.16 251998097.85
Accounts received in advance
Contract liabilities 24682659.81 24477902.07
Employee benefits payable 111762858.65 104213576.99
Taxes payable 73368973.04 82286512.35
Other payables 1044842628.13 1725497505.37
Including: Interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within
21300167.049497518.60
one year
Other current liabilities 2496507.13 2480204.79
Total current liabilities 1544115890.96 2200451318.02
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 26019343.88 21768906.70
Long-term payable
Long-term employee benefits
payable
Estimated liabilities 369927.50
Deferred income 11124996.80 28035686.51
Deferred income tax liabilities 20974399.99 16199629.60
Other non-current liabilities
Total non-current liabilities 58118740.67 66374150.31
Total liabilities 1602234631.63 2266825468.33
Owner’s equity (or shareholders’ equity):
Share capital 920970377.00 923828420.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 349012146.30 496166349.50
Less: Treasury shares 150041006.57 251095546.75
Other comprehensive income 8931016.20 7292879.31
Special reserve
Surplus reserve 463872795.00 463872795.00
Undistributed profit 5443173278.30 5397918032.14
Total owners’ equity (or
7035918606.237037982929.20
shareholders’ equity)
Total liabilities and owner’s
8638153237.869304808397.53
equity (or shareholders’ equity)
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
Consolidated Income Statement
January - December 2025
Unit: Yuan Currency: RMB
Item Notes 2025 2024
I. Total revenue 25063909836.47 24228248698.65
Including: Revenue VII. 61 25063909836.47 24228248698.65
Interest income
Premium received
Handling fee and commission income
II. Total operating costs 23574143913.58 22614762821.64
Including: Operating cost VII. 61 20462813963.30 19649752559.47
Interest expenses
86 / 233Annual Report 2025
Handling fee and commission
expenses
Payment on surrenders
Net compensation expenses
Net provision drawn for insurance
contract
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges VII. 62 100390340.73 95645558.71
Selling expenses VII. 63 1860144631.03 1738039609.61
Administrative expenses VII. 64 966231850.63 981802848.21
R&D expenses VII. 65 189639354.87 189145980.66
Financial expenses VII. 66 -5076226.98 -39623735.02
Including: Interest expenses 27831891.86 27331016.15
Interest income 35152616.54 64177866.11
Add: Other gains VII. 67 130489651.94 132438188.72
Income from investment (“-” refers to
VII. 68 9895830.01 -364758.05
loss)
Including: Investment income from
592433.92-3962188.64
associates and joint ventures
Derecognition of income
from financial assets at amortized cost
Exchange gains (“-” refers to loss)
Net gain on exposure hedging (“-”
refers to loss)
Gain on change in fair value (“-”
VII. 70 58155252.93 54361789.99
refers to loss)
Losses on credit impairment (“-”
VII. 71 -22872885.89 -28410867.15
refers to loss)
Losses on assets impairment (“-”
VII. 72 -9370921.23 -12879311.68
refers to loss)
Gains from asset disposal (“-” refers
VII. 73 -2847905.15 -10284.89
to loss)
III. Operating profits (“-” refers to loss) 1653214945.50 1758620633.95
Add: Non-operating profits VII. 74 75631491.35 78129813.59
Less: Non-operating expenses VII. 75 20142203.88 15492461.01
IV. Total profits (“-” refers to total loss) 1708704232.97 1821257986.53
Less: Income tax expenses VII. 76 347534198.38 366523055.44
V. Net profits (“-” refers to net loss) 1361170034.59 1454734931.09
(I) Classified by operation continuity
1. Net profits from continuing activities
1361170034.591454734931.09
(“-” refers to net loss)
2. Net profits from discontinuing activities
(“-” refers to net loss)
(II) Classified by ownership
1. Net profits attributable to shareholders
1310448991.961395844392.50
of the parent company (“-” refers to net loss)
2. Profit or loss attributable to minority
50721042.6358890538.59
shareholders (“-” refers to net loss)
VI. Net amount of other comprehensive
8627687.56-11294812.47
income after tax
(I) Net amount of other comprehensive
income after tax attributable to owners of the 10832726.48 -10477874.14
parent company
1. Other comprehensive income not to be
-305512.431490423.21
reclassified into profit or loss
(1) Change in re-measurement of defined
benefit plans
(2) Other comprehensive income that may
not be reclassified to profit or loss under -507676.48 296271.03
equity method
(3) Change in fair value of investments in
202164.051194152.18
other equity instruments
(4) Change in fair value of enterprise’s
87 / 233Annual Report 2025
own credit risk
2. Other comprehensive income to be
11138238.91-11968297.35
reclassified into profit or loss
(1) Other comprehensive income that may
be reclassified to profit or loss under equity 1943649.32 11920.22
method
(2) Change in fair value of other debt
investments
(3) Amount included in other
comprehensive income on reclassification of
financial assets
(4) Credit impairment provisions of other
debt investments
(5) Cash flow hedging reserve 1776705.72 -845326.86
(6) Exchange differences from translation
7417883.87-11134890.71
of financial statements
(7) Others
(II) Net amount of other comprehensive
income after tax attributable to minority -2205038.92 -816938.33
shareholders
VII. Total comprehensive income 1369797722.15 1443440118.62
(I) Total comprehensive income
1321281718.441385366518.36
attributable to owners of the parent company
(II) Total comprehensive income
48516003.7158073600.26
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share) 1.4306 1.5162
(II) Diluted earnings per share
1.43061.5162
(Yuan/share)
In case of business combination under common control net profit realized by the combined before the
combination in the period was nil; net profit realized by the combined in the previous period was nil.The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
Income Statement of the Parent Company
January - December 2025
Unit: Yuan Currency: RMB
Item Notes 2025 2024
I. Revenue XIX. 4 4151719699.55 4379397430.80
Less: Operating cost XIX. 4 2301417959.64 2460634350.19
Taxes and surcharges 38825737.48 36194364.90
Selling expenses 260806321.27 270279336.76
Administrative expenses 478043581.61 491409817.22
R&D expenses 142394698.73 149146241.99
Financial expenses -26317479.89 -52879140.51
Including: Interest expenses 2400727.43 1828685.69
Interest income 21477616.80 45382917.24
Add: Other gains 41321418.17 35110652.95
Income from investment (“-” refers to
XIX. 5 2265183.03 287842385.68
loss)
Including: Investment income from
592433.92-583369.62
associates and joint ventures
Derecognition of income
from financial assets at amortized cost
Net gain on exposure hedging (“-”
refers to loss)
Gain on change in fair value (“-”
45713568.4945800706.55
refers to loss)
Losses on credit impairment (“-”
1260172.30836373.47
refers to loss)
Losses on assets impairment (“-” 471325.67 -2714383.75
88 / 233Annual Report 2025
refers to loss)
Gains from asset disposal (“-” refers
38493.681403092.95
to loss)
II. Operating profits (“-” refers to loss) 1047619042.05 1392891288.10
Add: Non-operating profits 69651967.92 39489173.46
Less: Non-operating expenses 3883740.63 6594404.82
III. Total profits (“-” refers to total loss) 1113387269.34 1425786056.74
Less: Income tax expenses 152336646.18 167521754.03
IV. Net profits (“-” refers to net loss) 961050623.16 1258264302.71
(I) Net profits from continuing activities
961050623.161258264302.71
(“-” refers to net loss)
(II) Net profits from discontinuing
activities (“-” refers to net loss)
V. Net amount of other comprehensive
1638136.891502343.43
income after tax
(I) Other comprehensive income not to be
-305512.431490423.21
reclassified into profit or loss
1. Change in re-measurement of defined
benefit plans
2. Other comprehensive income that may
not be reclassified to profit or loss under -507676.48 296271.03
equity method
3. Change in fair value of investments in
202164.051194152.18
other equity instruments
4. Change in fair value of enterprise’s own
credit risk
(II) Other comprehensive income to be
1943649.3211920.22
reclassified into profit or loss
1. Other comprehensive income that may
be reclassified to profit or loss under equity 1943649.32 11920.22
method
2. Change in fair value of other debt
investments
3. Amount included in other
comprehensive income on reclassification of
financial assets
4. Credit impairment provisions of other
debt investments
5. Cash flow hedging reserve
6. Exchange differences from translation
of financial statements
7. Others
VI. Total comprehensive income 962688760.05 1259766646.14
VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)
(II) Diluted earnings per share
(Yuan/share)
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
Consolidated Cash Flow Statement
January - December 2025
Unit: Yuan Currency: RMB
Item Notes 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods or
27491799508.4526919241637.72
rendering of services
Net increase in customer and
interbank deposits
Net increase in borrowings from
central bank
89 / 233Annual Report 2025
Net increase in placements from
banks and other financial institutions
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy
holders and investments
Cash received from interest fees and
commissions
Net increase in borrowings
Net increase in repurchase business
capital
Net cash received from securities
trading agency services
Tax rebates 21922728.69 28793960.26
Other cash received from operating
VII. 78 1453451080.36 1911518646.32
activities
Sub-total of cash inflows from
28967173317.5028859554244.30
operating activities
Cash paid for goods and services 21907018844.38 21587437494.24
Net increase in customer loans and
advances
Net increase in deposits with PBOC
and interbank deposits
Cash paid for compensation
payments under original insurance
contract
Net increase in funds for lending
Cash paid for interests handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
1219778367.801194235979.40
employees
Taxes and fees paid 970982965.16 1087074596.45
Cash paid for other operating
VII. 78 2587320671.51 2701465377.42
activities
Sub-total of cash outflows from
26685100848.8526570213447.51
operating activities
Net cash flow generated from
2282072468.652289340796.79
operating activities
II. Cash flow from investing activities:
Cash received from disposal of
2531000000.002710000000.00
investments
Cash received from returns on
30463057.8112778713.86
investments
Net cash received from disposal of
fixed assets intangible assets and other 2664696.18 4158570.96
long-term assets
Net cash received from disposal of
subsidiaries and other operating entities
Other cash received relating to
VII. 78 5219162.31 497844.25
investing activities
Sub-total of cash inflows from
2569346916.302727435129.07
investing activities
Cash paid for purchase and
construction of fixed assets intangible 366847884.07 329274686.22
assets and other long-term assets
Cash paid for investment 3900000000.00 3973000000.00
Net increase in pledged loans
Net cash paid for acquiring
18423918.08
subsidiaries and other operating entities
Other cash paid relating to investing
activities
Sub-total of cash outflows from 4285271802.15 4302274686.22
90 / 233Annual Report 2025
investing activities
Net cash flow generated from
-1715924885.85-1574839557.15
investing activities
III. Cash flow generated from financing activities:
Proceeds received from financing
4325183.58506897050.00
activities
Including: Proceeds received by
subsidiaries from minority shareholders’ 4325183.58 506897050.00
investment
Cash received from borrowings 347960000.00 372730000.00
Other cash received from
VII. 78 4750000.00
financing-related activities
Sub-total of cash inflows from
357035183.58879627050.00
financing activities
Cash repayments of borrowings 417882000.00 241850000.00
Dividends paid profit distributed or
922202175.31767302019.51
interest paid
Including: Dividend and profit paid
20246187.50
by subsidiaries to minority shareholders
Other cash paid for financing-related
VII. 78 369865778.35 569048890.82
activities
Sub-total of cash outflows from
1709949953.661578200910.33
financing activities
Net cash flow from financing
-1352914770.08-698573860.33
activities
IV. Effects of exchange rate
fluctuations on cash and cash 2694362.11 2603516.04
equivalents
V. Net increase in cash and cash
-784072825.1718530895.35
equivalents
Add: Cash and cash equivalents at the
3726616032.183708085136.83
beginning of the period
VI. Cash and cash equivalents at the
2942543207.013726616032.18
end of the period
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
Cash Flow Statement of the Parent Company
January - December 2025
Unit: Yuan Currency: RMB
Item Notes 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods or
4374747225.574680913907.02
rendering of services
Tax rebates
Other cash received from operating
1669366759.171468358509.89
activities
Sub-total of cash inflows from
6044113984.746149272416.91
operating activities
Cash paid for goods and services 2324732437.80 2497276629.57
Cash paid to and on behalf of
566661767.53581232256.55
employees
Taxes and fees paid 360232283.55 410769251.30
Cash paid for other operating
1475505465.841164814990.86
activities
Sub-total of cash outflows from
4727131954.724654093128.28
operating activities
Net cash flow generated from
1316982030.021495179288.63
operating activities
II. Cash flow from investing activities:
Cash received from disposal of
2190000000.002610000000.00
investments
91 / 233Annual Report 2025
Cash received from returns on
29159592.98298193147.19
investments
Net cash received from disposal of
fixed assets intangible assets and other 1664210.56 2474910.71
long-term assets
Net cash received from disposal of
subsidiaries and other operating entities
Other cash received relating to
647135.65497844.25
investing activities
Sub-total of cash inflows from
2221470939.192911165902.15
investing activities
Cash paid for purchase and
construction of fixed assets intangible 83345132.54 133107843.96
assets and other long-term assets
Cash paid for investment 3240000000.00 3919000000.00
Net cash paid for acquiring
subsidiaries and other operating entities
Other cash paid relating to investing
activities
Sub-total of cash outflows from
3323345132.544052107843.96
investing activities
Net cash flow generated from
-1101874193.35-1140941941.81
investing activities
III. Cash flow generated from financing activities:
Proceeds received from financing
activities
Cash received from borrowings
Other cash received from
financing-related activities
Sub-total of cash inflows from
financing activities
Cash repayments of borrowings
Dividends paid profit distributed or
918912776.70742379268.52
interest paid
Other cash paid for financing-related
68143082.26186177504.39
activities
Sub-total of cash outflows from
987055858.96928556772.91
financing activities
Net cash flow from financing
-987055858.96-928556772.91
activities
IV. Effects of exchange rate
fluctuations on cash and cash 3056338.34 9414157.16
equivalents
V. Net increase in cash and cash
-768891683.95-564905268.93
equivalents
Add: Cash and cash equivalents at the
1251743410.281816648679.21
beginning of the period
VI. Cash and cash equivalents at the
482851726.331251743410.28
end of the period
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
92 / 233Annual Report 2025
Consolidated Statements of Changes in Owners’ Equity
January - December 2025
Unit: Yuan Currency: RMB
2025
Equity attributable to owners of the parent company
Item Total equity
Minority equity
Other equity instruments attributable to owners Other General
Paid-up capital (or Less: Treasury Special
Capital reserve comprehensive Surplus reserve risk Undistributed profit Others Subtotal
share capital) Preference Perpetual shares reserve
Others income provision
shares bonds
I. Balance at the end of last
923828420.00840320493.39251095546.75-11423451.31464201654.916944027602.898909859173.13525833687.679435692860.80
year
Add: Changes in
accounting policies
Correction for
previous errors
Others
II. Balance at the beginning
923828420.00840320493.39251095546.75-11423451.31464201654.916944027602.898909859173.13525833687.679435692860.80
of the year
III. Increase and decrease
for the period (“-” for -2858043.00 -125871322.10 -101054540.18 10832726.48 394653614.96 377811516.52 63493233.33 441304749.85
decrease)
(I) Total comprehensive
10832726.481310448991.961321281718.4448516003.711369797722.15
income
(II) Owner’s contribution
-2858043.00-125871322.10-101054540.18-27674824.9214977229.62-12697595.30
and capital reduction
1. Ordinary shares
-2858043.00-147154203.20-101054540.18-48957706.028897188.24-40060517.78
contributed by the owners
2. Capital contributions by
other equity instrument
holders
3. Amount of share-based
payments credited to
owners’ equity
4. Others 21282881.10 21282881.10 6080041.38 27362922.48
(III) Profit distribution -915795377.00 -915795377.00 -915795377.00
1. Withdrawal of surplus
reserve
2. Withdrawal of general
risk provision
3. Distribution to owners
-915795377.00-915795377.00-915795377.00
(or shareholders)
4. Others
(IV) Internal carry-forward
of owners’ equity
1. Transfer of capital
reserve to capital (or share
capital)
2. Transfer of surplus
reserve to capital (or share
capital)
3. Surplus reserve to cover
loss
4. Changes in defined
benefit scheme carried
93 / 233Annual Report 2025
forward to retained
earnings
5. Carry-forward of other
comprehensive income to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for the
period
2. Utilization for the period
(VI) Others
IV. Balance at the end of
920970377.00714449171.29150041006.57-590724.83464201654.917338681217.859287670689.65589326921.009876997610.65
the period
2024
Equity attributable to owners of the parent company
Item Total equity
Minority equity
Other equity instruments Other General attributable to owners
Paid-up capital (or Less: Treasury Special
Capital reserve comprehensive Surplus reserve risk Undistributed profit Others Subtotal
share capital) shares reserve
Preference Perpetual income provision
Others
shares bonds
I. Balance at the end of last
926596570.00373093781.49216941657.70-945577.17464201654.916287174031.997833178803.52517985992.868351164796.38
year
Add: Changes in
accounting policies
Correction for
previous errors
Others
II. Balance at the beginning
926596570.00373093781.49216941657.70-945577.17464201654.916287174031.997833178803.52517985992.868351164796.38
of the year
III. Increase and decrease
for the period (“-” for -2768150.00 467226711.90 34153889.05 -10477874.14 656853570.90 1076680369.61 7847694.81 1084528064.42
decrease)
(I) Total comprehensive
-10477874.141395844392.501385366518.3658073600.261443440118.62
income
(II) Owner’s contribution
-2768150.00467226711.9034153889.05430304672.85-29979717.95400324954.90
and capital reduction
1. Ordinary shares
-2768150.00-61946741.5034153889.05-98868780.55-46770376.24-145639156.79
contributed by the owners
2. Capital contributions by
other equity instrument
holders
3. Amount of share-based
payments credited to 58774860.49 58774860.49 16790658.29 75565518.78
owners’ equity
4. Others 470398592.91 470398592.91 470398592.91
(III) Profit distribution -738990821.60 -738990821.60 -20246187.50 -759237009.10
1. Withdrawal of surplus
reserve
2. Withdrawal of general
risk provision
3. Distribution to owners
-738990821.60-738990821.60-20246187.50-759237009.10
(or shareholders)
4. Others
(IV) Internal carry-forward
of owners’ equity
94 / 233Annual Report 2025
1. Transfer of capital
reserve to capital (or share
capital)
2. Transfer of surplus
reserve to capital (or share
capital)
3. Surplus reserve to cover
loss
4. Changes in defined
benefit scheme carried
forward to retained
earnings
5. Carry-forward of other
comprehensive income to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for the
period
2. Utilization for the period
(VI) Others
IV. Balance at the end of
923828420.00840320493.39251095546.75-11423451.31464201654.916944027602.898909859173.13525833687.679435692860.80
the period
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi Person in charge of Accounting Department: Zhai Yu
Parent Company’s Statement of Changes in Owners’ Equity
January - December 2025
Unit: Yuan Currency: RMB
2025
Other equity instruments Other
Item Paid-up capital (or Less: Treasury Special Undistributed Total equity attributable
Capital reserve comprehensive Surplus reserve
share capital) Preference Perpetual shares reserve profit to owners
Others income
shares bonds
I. Balance at the end of last year 923828420.00 496166349.50 251095546.75 7292879.31 463872795.00 5397918032.14 7037982929.20
Add: Changes in accounting policies
Correction for previous errors
Others
II. Balance at the beginning of the year 923828420.00 496166349.50 251095546.75 7292879.31 463872795.00 5397918032.14 7037982929.20
III. Increase and decrease for the period (“-” for
-2858043.00-147154203.20-101054540.181638136.8945255246.16-2064322.97
decrease)
(I) Total comprehensive income 1638136.89 961050623.16 962688760.05
(II) Owner’s contribution and capital reduction -2858043.00 -147154203.20 -101054540.18 -48957706.02
1. Ordinary shares contributed by the owners -2858043.00 -147154203.20 -101054540.18 -48957706.02
2. Capital contributions by other equity instrument
holders
3. Amount of share-based payments credited to owners’
equity
4. Others
(III) Profit distribution -915795377.00 -915795377.00
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders) -915795377.00 -915795377.00
3. Others
(IV) Internal carry-forward of owners’ equity
95 / 233Annual Report 2025
1. Transfer of capital reserve to capital (or share capital)
2. Transfer of surplus reserve to capital (or share capital)
3. Surplus reserve to cover loss
4. Changes in defined benefit scheme carried forward to
retained earnings
5. Carry-forward of other comprehensive income to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for the period
2. Utilization for the period
(VI) Others
IV. Balance at the end of the period 920970377.00 349012146.30 150041006.57 8931016.20 463872795.00 5443173278.30 7035918606.23
2024
Other equity instruments
Item Paid-up capital (or Less: Treasury Other comprehensive Special Undistributed Total equity attributable
Capital reserve Surplus reserve
share capital) Preference Perpetual shares income reserve profit to owners
Others
shares bonds
I. Balance at the end of last year 926596570.00 558113091.00 216941657.70 5790535.88 463872795.00 4878644551.03 6616075885.21
Add: Changes in accounting policies
Correction for previous errors
Others
II. Balance at the beginning of the year 926596570.00 558113091.00 216941657.70 5790535.88 463872795.00 4878644551.03 6616075885.21
III. Increase and decrease for the period (“-” for decrease) -2768150.00 -61946741.50 34153889.05 1502343.43 519273481.11 421907043.99
(I) Total comprehensive income 1502343.43 1258264302.71 1259766646.14
(II) Owner’s contribution and capital reduction -2768150.00 -61946741.50 34153889.05 -98868780.55
1. Ordinary shares contributed by the owners -2768150.00 -61946741.50 34153889.05 -98868780.55
2. Capital contributions by other equity instrument
holders
3. Amount of share-based payments credited to owners’
equity
4. Others
(III) Profit distribution -738990821.60 -738990821.60
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders) -738990821.60 -738990821.60
3. Others
(IV) Internal carry-forward of owners’ equity
1. Transfer of capital reserve to capital (or share capital)
2. Transfer of surplus reserve to capital (or share capital)
3. Surplus reserve to cover loss
4. Changes in defined benefit scheme carried forward to
retained earnings
5. Carry-forward of other comprehensive income to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for the period
2. Utilization for the period
(VI) Others
IV. Balance at the end of the period 923828420.00 496166349.50 251095546.75 7292879.31 463872795.00 5397918032.14 7037982929.20
The chairman of the Company: Chen Huwen CFO of the Company: Liu Jiaqi Person in charge of Accounting Department: Zhai Yu
96 / 233Annual Report 2025
III. General Information about the Company
1. Company profile
√ Applicable □ Not applicable
Shanghai M&G Stationery Inc. (hereinafter referred to as “Company” or the “Company”) is a
limited company that was approved by the Approval for the Initial Public Offering of Shanghai M&G
Stationery Inc. in [2015] No. 15 securities regulatory license of China Securities Regulatory
Commission in January 2015. The Company’s business license No.: 91310000677833266F. In January
2015 the Company was listed on Shanghai Stock Exchange. The industry where the Company operates
is manufacturing industry in products for stationery arts sports and entertainment.As of December 31 2025 the Company issued a total of 920970377 shares accumulatively and
its registered capital amounted to RMB920970377. The registered address of the Company is Building
3 No. 3469 Jinqian Road Fengxian District Shanghai. The principal operations of the Company
include the design development manufacturing and marketing of writing instruments student stationery
office supplies and other products the direct office supplies business and the new retail business.The parent company of the Company is M&G Holdings (Group) Co. Ltd. and the beneficial
controllers are Chen Huwen Chen Huxiong and Chen Xueling.The financial statements were approved for submission by the Board of Directors on March 30
2026.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The Company prepared financial statements in accordance with the Accounting Standards for
Business Enterprises - Basic Standards and various specific account standards application guidance for
accounting standards for business enterprises interpretations of the accounting standards for businessenterprises and other relevant regulations (hereinafter collectively referred to as “Accounting Standardsfor Business Enterprises”) promulgated by the Ministry of Finance and the disclosure requirements in
the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public
No.15 - General Provisions on Financial Report issued by China Securities Regulatory Commission.
2. Going concern
√ Applicable □ Not applicable
These financial statements have been prepared on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
√ Applicable □ Not applicable
Disclosure of specific accounting policies and accounting estimates:
The following disclosures cover the specific accounting policies and accounting estimates
formulated by the Company according to the characteristics of its production and operation. For details
please refer to Notes “V (11) Financial Instruments” “V (21) Fixed Assets” “V (26) Intangible Assets”
“V (28) Long-term Deferred Expenses” “V (34) Income” and “V (36) Government Subsidies”.
1. Statement of compliance of accounting standards for business enterprises
The financial statements are in compliance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and truly and completely present the consolidated and parent
company’s financial position of the Company as at December 31 2025 as well as the consolidated and
parent company’s operating results and cash flows for the year then ended.
2. Accounting period
The accounting period of the Company is from January 1 to December 31 of each calendar year.
3. Operating cycle
√ Applicable □ Not applicable
97 / 233Annual Report 2025
The Company’s operating cycle is 12 months.
4. Reporting currency
RMB is adopted by the Company as the bookkeeping currency. Each subsidiary of the Company
determines its own reporting currency based on the primary economic environment where it runs
business. The reporting currency of Back to School Holding AS and Beckmann AS is NOK; the
reporting currency of Beckmann Norway GmbH (Germany) is EUR; the reporting currency of
Beckmann Norway Inc. is USD; the recording currency of Beckmann Norway GmbH (Austria) is EUR;
the recording currency of Axus Stationery (Hong Kong) Company Ltd. is HKD; the recording currency
of International stationery company is VND; and the recording currency of Shanghai M&G Stationery
(Thailand) Co. Ltd. is THB. The financial statement herein is presented in RMB.
5. Methods for determining materiality standards and selection basis
√ Applicable □ Not applicable
Item Materiality standard
Material accounts receivable where bad The amount of a provision separately accrued accounts for
debt provisions are accrued separately over 0.5% of total assets
The amount of a single write-off accounts for over 0.5% of
Write-off of material accounts receivable
total assets
Material bad debt provision amounts
The amount of a single recovery or reversal accounts for over
recovered or reversed in the accounts
0.5% of total assets
receivable in the current period
Other material accounts receivable where The amount of a provision separately accrued accounts for
bad debt provisions are accrued separately over 0.5% of total assets
Write-off of other material accounts The amount of a single write-off accounts for over 0.5% of
receivable total assets
Material bad debt provision amounts
The amount of a single recovery or reversal accounts for over
recovered or reversed in other accounts
0.5% of total assets
receivable in the current period
Material prepayments by amount that have The amount of a single prepayment that has aged over one
aged over one year year accounts for over 0.5% of total assets
Changes in material construction in
The budget of a single project exceeds 3% of total assets
progress in the current period
Material accounts payable that have aged The amount of a single account payable that has aged over one
over one year or are overdue year accounts for over 0.5% of total assets
Material contract liabilities that have aged The amount of a single contract liability that has aged over one
over one year year accounts for over 0.5% of total assets
Other material accounts payable that have The amount of a single other account payable that has aged
aged over one year or are overdue over one year accounts for over 0.5% of total assets
The Company recognises the payments related to equity
Cash received in connection with material
disposal that occur in amounts greater than 5% of net assets as
investing activities
cash received in connection with material investing activities
The Company recognises the payments related to equity
Cash paid in connection with material
acquisition that occur in amounts greater than 5% of net assets
investing activities
as cash paid in connection with material investing activities
The Company recognises overseas operating entities whose
total assets/gross profits/revenues exceed 15%/10%/15% of
Material overseas operating entities
total consolidated assets/total consolidated profits/consolidated
revenues as material overseas operating entities.The Company recognises non-wholly-owned subsidiaries
whose total assets/gross profits/revenues exceed
Material non-wholly-owned subsidiary 15%/10%/15% of total consolidated assets/total consolidated
profits/consolidated revenues as material non-wholly-owned
subsidiaries.Material joint ventures or associated The Company recognises joint ventures or associated
98 / 233Annual Report 2025
enterprises enterprises whose total assets/gross profits/revenues exceed
15%/10%/15% of total consolidated assets/total consolidated
profits/consolidated revenues as material joint ventures or
associated enterprises.
6. Accounting treatments for business combination under or not under common control
√ Applicable □ Not applicable
Business combination under common control: the assets and liabilities acquired by the Company in
business combination (including goodwill incurred in the acquisition of the acquiree by ultimate
controlling party) shall be measured at the carrying amount of the assets and liabilities of the acquiree in
the consolidated financial statements of the ultimate controlling party at the date of combination. The
difference between the carrying amount of the net assets obtained and the carrying amount of the
consideration paid for the merger (or total nominal value of the issued shares) is adjusted to capital
premium in capital reserve. If the capital premium in capital reserve is not sufficient to offset the
difference the remaining balance is adjusted against retained earnings.Business combination not under common control: the cost of business combination is the fair value
of the assets paid by the acquirer to obtain the control right of the acquiree the liabilities incurred or
assumed and the equity securities issued at the date of purchase. Where the cost of business
combination is higher than the fair value of the identifiable net assets acquired from the acquiree in
business combination the Company shall recognize such difference as goodwill; where the cost of
business combination is less than the fair value of the identifiable net assets acquired from the acquiree
in business combination such difference shall be included in the current profit or loss. The identifiable
assets liabilities and contingent liabilities of the acquiree obtained in the business combination that meet
the recognition conditions are measured at their fair values at the date of purchase.The direct expenses incurred in business combination shall be included the current profit or loss;
transaction costs associated with the issue of equity or debt securities for the business combination shall
be included in the initially recognized amounts of the equity or debt securities.
7. Control judgment criteria and preparation of consolidated financial statements
√ Applicable □ Not applicable
(1) Control judgment criteria
The consolidation scope of consolidated financial statements is determined on the basis of control
including the Company and all of its subsidiaries. The term “control” refers to the power held by the
Company over the invested enterprise through which the Company is capable of enjoying variable
return by participating in relevant activities of the invested enterprise and having the ability to influence
the amount of return via such control.
(2) Consolidation procedure
The Company regards the entire enterprise group as an accounting entity and prepares the
consolidated financial statements in accordance with unified accounting policies to reflect the overall
financial status operating results and cash flow of the enterprise group. The influence of internal
transactions between the Company and its subsidiaries and among the subsidiaries shall be offset. If
internal transactions indicate that the relevant assets have suffered impairment losses the losses shall be
fully recognized. In preparing the consolidated financial statements where the accounting policies and
the accounting periods are inconsistent between the Company and its subsidiaries the financial
statements of the subsidiaries are adjusted in accordance with the accounting policies and accounting
period of the Company.The owners’ equity the net profit or loss and the comprehensive income attributable to minority
shareholders of a subsidiary of the current period are presented separately under the owners’ equity in
the consolidated balance sheet the net profit and the total comprehensive income in the consolidated
income statement respectively. Where losses attributable to the minority shareholders of a subsidiary
exceed the minority shareholders’ interest entitled in the shareholders’ equity of the subsidiary at the
beginning of the period the excess is allocated against the minority equity.* Addition of subsidiary or business
During the Reporting Period if there is an addition of subsidiary or business due to business
combination under common control the operating results and cash flows of the subsidiary or business
99 / 233Annual Report 2025
combination from the beginning of the current period to the end of the Reporting Period are included
into the consolidated financial statements and at the same time the amount at the end of the period of
the consolidated financial statements and the relevant items in the comparative statements are adjusted
as if the reporting entity after combination had been existing since the control of the ultimate controlling
party started.Where control over the investee under common control is obtained due to reasons such as increase
in investments for equity investment held before the control over the acquiree is obtained profit or loss
other comprehensive income and other changes in net assets recognized from the later of the acquisition
of the original equity interest and the date when the acquirer and the acquiree were placed under
common control until the date of combination are offset against the retained profit at the beginning of
the period of the comparative statements or the profit or loss of the current period respectively.During the Reporting Period if there is an addition of subsidiary or business due to business
combination not under common control it shall be included in the consolidated financial statements on
the basis of the fair value of the identifiable assets liabilities and contingent liabilities determined at the
date of purchase.Where control over the investee not under common control is obtained due to reasons such as
increase in investments for the equity interest of the acquiree held before the date of purchase the
Company remeasures the equity interest at its fair value as at the date of purchase and any difference
between the fair value and its book value will be accounted for as investment gains of the current period.Where equity interest of the acquiree held before the date of purchase is related to other comprehensive
income that can be reclassified into profit and loss in the future and other changes in owners’ equity
under the equity method such equity interest is transferred to investment gains of the period to which
the date of purchase belongs.* Disposal of subsidiaries
A. General treatment for disposal
When control over the investee is lost due to the disposal of part of the equity investment or other
reasons the Company remeasures the remaining equity investment at fair value as at the date on which
control is lost. The difference between the sum of the consideration received from equity disposal and
the fair value of the remaining equity interest and the sum of the net assets of the subsidiary
proportionate to the original shareholding accumulated from the date of purchase or combination and
goodwill is included in investment gains of the period during which the control is lost. Other
comprehensive income that is related to the equity investment in the original subsidiary and can be
reclassified into profit and loss in the future and other changes in owners’ equity under the equity
method are transferred to investment gains of the period during which the control is lost.B. Stepwise disposal of subsidiary
In respect of stepwise disposal of equity investment in a subsidiary through multiple transactions
until control is lost if the terms conditions and economic effects of the transactions of equity investment
in the subsidiary satisfy one or more of the following conditions the transactions are normally accounted
for as a basket of transactions:
i. these transactions were entered into simultaneously or after considering the effects of each other;
ii. these transactions constituted a complete commercial result as a whole;
iii. one transaction was conditional upon at least one of the other transaction;
iv. one transaction was not economical on its own but was economical when considering together
with other transactions.Where the transactions constitute a basket of transactions the Company accounts for the
transactions as a transaction of disposal of a subsidiary until control is lost; the difference between the
amount received each time for disposal before control is lost and the net assets of such subsidiary
corresponding to the disposal of investment is recognized as other comprehensive income in the
consolidated financial statements and is transferred to profit or loss of the period during which control is
lost upon loss of control.Where the transactions do not constitute a basket of transactions before the loss of control the
transactions are accounted for using the policies related to partial disposal of equity investment in a
subsidiary where no control is lost; when control is lost they are accounted for using the general method
for disposal of subsidiaries.* Purchase of minority interests in subsidiary
For the difference between the long-term equity investment newly acquired due to the purchase of
minority interests by the Company and the share of net assets of the subsidiary calculated according to
100 / 233Annual Report 2025
the new shareholding accumulated from the date of purchase (or date of combination) share premium of
the capital reserve in the consolidated balance sheet will be adjusted; where share premium of the capital
reserve is insufficient for the write-down retained profit will be adjusted.* Partial disposal of equity investment in subsidiaries without losing control
For the difference between the disposal consideration and the net assets of the subsidiary
corresponding to the disposal of long-term equity investment accumulated from the date of purchase or
date of combination share premium of the capital reserve in the consolidated balance sheet will be
adjusted; where share premium of the capital reserve is insufficient for the write-down retained profit
will be adjusted.
8. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable □ Not applicable
Joint arrangements are divided into joint operations and joint ventures.A joint operation is a joint arrangement whereby the party to joint arrangement has rights to the
assets and obligations for the liabilities related to the arrangement.The Company recognizes the following items in connection with the interest share in joint
operation:
(1) Assets solely held by the Company and assets jointly held under the Company’s shares;
(2) Liabilities solely assumed by the Company and liabilities jointly assumed under the Company’s
shares;
(3) Revenues from the sale of the Company’s share in the output of joint operation;
(4) Revenues from the sale of the output from the joint operation recognized under the Company’s
share;
(5) Expenses solely incurred and expenses incurred from the joint operation recognized under the
Company’s share.The Company’s investments in joint ventures are accounted for by equity method. For details
please refer to Note “V (19) Long-term Equity Investment”.
9. Determination of cash and cash equivalents
Cash refers to the cash on hand and deposits that are available for payment of the Company. Cash
equivalents refer to investments held by the Company that are short-term highly liquid readily
convertible to known amounts of cash and subject to an insignificant risk of changes in value.
10. Foreign currency transactions and translation of foreign currency financial statements
√ Applicable □ Not applicable
(1) Foreign currency transactions
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day
when the transactions occur.Balance of monetary items in foreign currency as at the balance sheet date is translated at the spot
rates prevailing at the balance sheet date and any translation difference arising therefrom is included in
profit or loss of the period except for the translation difference arising from dedicated borrowings in
foreign currency related to the construction of assets qualified for capitalization which is accounted for
under the principle of capitalization of borrowing expenses.
(2) Translation of foreign currency financial statements
Asset and liability items in the balance sheet are translated at the spot rates prevailing at the balance
sheet date. Owners’ equity items other than “undistributed profit” adopt the spot rates on the dates when
transactions are incurred. Income and expense items in the income statement are translated at the
approximate rates prevailing at the transaction dates which are determined in a systematic and
reasonable way.On disposal of a foreign operation the exchange differences in the financial statements in foreign
currency relating to that foreign operation are transferred from owners’ equity to profit or loss of the
period during which the disposal occurs.
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11. Financial instruments
√ Applicable □ Not applicable
The Company recognizes a financial asset financial liability or equity instrument when it becomes
a party to a financial instrument contract.
(1) Classification of the financial instruments
According to the business model of the Company’s management of financial assets and the
contractual cash flow characteristics of financial assets financial assets are classified at the initial
recognition as: financial assets at amortized cost financial assets at fair value through profit or loss and
other financial assets at fair value through current profit or loss.The Company classifies financial assets that simultaneously meet the following conditions and are
not designated as financial assets at fair value through current profit or loss as financial assets measured
at amortized cost:
- the business model aims at collecting contractual cash flows; and
- contractual cash flows are only the payment made based on the principal and the interest of the
outstanding principal amount.The Company classifies financial assets that simultaneously meet the following conditions and are
not designated as financial assets at fair value through current profit or loss as financial assets (debt
instruments) at fair value through other comprehensive income:
- the business model aims at both collecting contractual cash flows and selling the financial assets;
and
- contractual cash flows are only the payment made based on the principal and the interest of the
outstanding principal amount.For non-trading equity instrument investments the Company irrevocably designates them as
financial assets (equity instruments) at fair value through other comprehensive income at the time of
initial recognition. The designation is made on the basis of a single investment and the related
investment meets the definition of an equity instrument from the issuer’s perspective.Except for the above-mentioned financial assets measured at amortized cost and at fair value
through other comprehensive income the Company classifies all other financial assets as financial assets
at fair value through current profit or loss. At the time of initial recognition if accounting mismatches
can be eliminated or significantly reduced the Company can irrevocably designate financial assets that
should be classified as financial assets measured at amortized cost or at fair value through other
comprehensive income as financial assets at fair value through current profit or loss.Financial liabilities at the initial recognition are classified into financial liabilities at fair value
through current profit or loss and financial liabilities at amortized cost.Financial liabilities at the initial recognition can be designated as financial liabilities at fair value
through current profit or loss if one of the following conditions can be met:
* Such designation can eliminate or significantly reduce accounting mismatches.* According to the enterprise risk management or investment strategy stated in the official written
document management and evaluation of the financial liabilities portfolio or financial assets and
financial liabilities portfolio are based on fair value which will be used as the basis for reporting to the
key management personnel.* The financial liabilities include embedded derivatives that need to be split separately.
(2) Recognition and measurement of financial instruments
* Financial assets at amortized cost
Financial assets at amortized cost include notes receivable accounts receivable other receivables
long-term receivables and debt investment which are initially measured at fair value and related
transaction costs are included in the initial recognition amount. The accounts receivable of major
financing components and the accounts receivable of the Company’s decision not to consider the
financing component with the term less than one year are initially measured at the contract transaction
price.
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Interest calculated by the effective interest method during the period of holding is included in the
current profit or loss.Upon recovery or disposal the difference between the acquisition price and the carrying amount of
the financial asset shall be included in the current profit or loss.* Financial assets at fair value through other comprehensive income (debt instruments)
Financial assets (debt instruments) at fair value through other comprehensive income including
receivables financing and other debt investments are initially measured at fair value and related
transaction costs are included in the initial recognition amount. The financial assets are subsequently
measured at fair value. Changes in fair value are included in other comprehensive income except for
interest impairment losses or gains and exchange gain or loss calculated using the effective interest
method.When the recognition is terminated the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in the current
profit or loss.* Financial assets (equity instruments) at fair value through other comprehensive income
Financial assets (equity instruments) at fair value through other comprehensive income including
other equity instruments are initially measured at fair value and related transaction costs are included in
the initial recognition amount. The financial assets are subsequently measured at fair value and changes
in fair value are included in other comprehensive income. The dividends obtained are included in the
current profit and loss.When the recognition is terminated the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in retained
earnings.* Financial assets at fair value through the current profit or loss
Financial assets at fair value through the current profit or loss including held-for-trading financial
assets derivative financial assets and other non-current financial assets are initially measured at fair
value and related transaction costs are included in the current profit or loss. The financial assets are
subsequently measured at fair value and changes in fair value are included in the current profit or loss.* Financial liabilities at fair value through current profit or loss
Financial liabilities at fair value through current profit or loss including held-for-trading financial
liabilities and derivative financial liabilities are initially measured at fair value and related transaction
costs are included in the current profit or loss. The financial liabilities are subsequently measured at fair
value and changes in fair value are included in the current profit or loss.When the recognition is terminated the difference between the carrying amount and consideration
paid is included in the current profit and loss.* Financial liabilities at amortized cost
Financial liabilities at amortized cost including short-term borrowings bills payable and accounts
payable other payables long-term borrowings bonds payable long-term payables are initially
measured at fair value and related transaction costs are included in the initial recognition amount.Interest calculated by the effective interest method during the period of holding is included in the
current profit or loss.When the recognition is terminated the difference between consideration paid and the carrying
amount of the financial liabilities is included in the current profit and loss.
(3) Recognition basis and measurement methods for derecognition of financial assets and transfer
of financial assets
The Company derecognizes financial assets when one of the following conditions is met:
- the contractual rights to collect the cash flows from the financial assets expire;
- the financial assets have been transferred and nearly all the risks and rewards related to the
ownership of the financial assets have been transferred to the transferee; or
103 / 233Annual Report 2025
- the financial assets have been transferred and the Company have neither transferred nor retained
almost all risks and rewards related to the ownership of the financial assets but did not retain control
over the financial assets.When the Company modifies or renegotiates a contract with a counterparty in a manner that
constitutes a material modification the original financial asset is derecognized and a new financial asset
is recognized in accordance with the modified terms.Where a financial asset is transferred it shall not be derecognized if the Company has retained
nearly all the risks and rewards related to the ownerships of the financial asset.The substance-over-form principle shall be adopted while making a judgment on whether the
transfer of financial assets satisfies the above conditions for derecognition.The transfer of financial assets could be classified into entire transfer and partial transfer. If the
transfer of an entire financial asset satisfies the conditions for derecognition the difference between the
two amounts below shall be included in the current profit or loss:
* The carrying amount of the financial assets transferred;
* The consideration received as a result of the transfer plus the accumulative amount of the
change in fair value previously included into the owners’ equity (in cases where the transferred financial
assets are financial assets (debt instruments) at fair value through other comprehensive income).If the partial transfer of financial assets satisfies the conditions for derecognition the overall
carrying amount of the transferred financial assets shall be apportioned according to their respective
relative fair value between the portion of derecognized part and the remaining part and the difference
between the two amounts below shall be included in the current profit or loss:
* The carrying amount of the derecognized portion;
* The consideration of the derecognized portion plus the corresponding derecognized portion of
accumulated change in fair value previously included in owners’ equity (in cases where the transferred
financial assets are financial assets (debt instruments) at fair value through other comprehensive
income).If the transfer of financial assets does not meet the conditions for derecognition the financial assets
continue to be recognized and the consideration received is recognized as a financial liability.
(4) Derecognition of financial liabilities
When the current obligation under a financial liability is completely or partially discharged the
whole or relevant portion of the liability is derecognized; if an agreement is entered into between the
Company and a creditor to replace the original financial liabilities with new financial liabilities with
substantially different terms the original financial liabilities will be derecognized and the new financial
liabilities will be recognized.If the contract terms of the original financial liabilities are substantially amended in part or in full
the original financial liabilities will be derecognized in full or in part and the financial liabilities whose
terms have been amended will be recognized as a new financial liability.When financial liabilities are derecognized in full or in part the difference between the carrying
amount of the financial liabilities derecognized and the consideration paid (including transferred
non-cash assets or new financial liability) will be included in the current profit or loss.Where the Company repurchases part of its financial liabilities the carrying amount of such
financial liabilities will be allocated according to the relative fair value between the continuously
recognized part and derecognized part on the repurchase date. The difference between the carrying
amount of the derecognized portion of financial liabilities and the consideration paid (including
transferred non-cash assets or new financial liability) will be included in the current profit or loss.
(5) Method of determining the fair values of financial assets and liabilities
A financial instrument with an active market determines its fair value by quoted prices in an active
market. Financial instruments that do not exist in an active market shall use valuation techniques to
determine their fair value. During the valuation process the Company uses valuation techniques
appropriate to the prevailing circumstances with the support of sufficient data and other information
available selects inputs consistent with the characteristics of the assets or liabilities considered in the
transactions of relevant assets or liabilities by market participants and gives priority to relevant
104 / 233Annual Report 2025
observable inputs. Unobservable inputs are used only when the relevant observable inputs are not
accessible or the access to which is impracticable.
(6) Impairment test method and accounting treatment for impairment of financial instruments
Based on anticipated credit losses the Company carries out accounting treatments of impairment on
financial assets measured at amortized cost financial assets (debt instruments) at fair value through
other comprehensive income and financial guarantee contracts.The Company considers reasonable and evidence-based information about past events current
conditions and forecasts of future economic conditions and uses the risk of default as the weight to
calculate the probability-weighted amount of the present value of the difference between the contractual
cash flow receivable and the expected cash flow and recognizes the expected credit loss.Regarding one-year the receivables and contract assets formed from transactions regulated by the
Accounting Standards for Business Enterprises No. 14 - Revenue regardless of whether they contain
significant financing components or not the Company always measures their loss reserves in accordance
with the amount of anticipated credit losses for the entire lifetime.Regarding receivables from leasing formed from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases the Company always measures their loss reserves in
accordance with the amount of anticipated credit losses for the entire lifetime.Regarding other financial instruments the Company assesses at each balance sheet date their credit
risk changes since initial recognition.The Company compares the risk of default on the balance sheet date of a financial instrument with
the risk of default on the date of initial recognition to determine the relative change in the risk of default
during the expected life of the financial instrument so as to assess whether the credit risk of the financial
instrument has increased significantly since the initial recognition. Usually after an overdue for more
than 30 days the Company believes that the credit risk of the financial instrument has increased
significantly unless there is conclusive evidence that the credit risk of the financial instrument has not
increased significantly since the initial recognition.If the credit risk of financial instrument at the balance sheet date is low the Company will believe
that the credit risk of the financial instrument has not increased significantly since the initial recognition.If the credit risk of the financial instruments has increased significantly since the initial recognition
the Company will measure its loss provision based on the amount of anticipated credit loss for the
lifetime of the financial instruments; if the credit risk of the financial instruments has not significantly
increased since the initial recognition the Company will measure its loss provision based on the amount
of anticipated credit loss for the financial instruments in the next 12 months. The increase or reversal of
the loss provision resulting therefrom is included in the current profit and loss as an impairment loss or
gain. Regarding financial assets at fair value through other comprehensive income (debt instruments)
the Company recognizes their loss reserves through other comprehensive income and includes
impairment losses or gains in the profit or loss for the current period without reducing the book value of
such financial assets presented in the balance sheet.If there is any objective evidence indicating that an account receivable has incurred credit
impairment the Company will make provision for impairment for that account receivable separately.Apart from the above-mentioned accounts receivable where bad debt provisions are accrued
separately the Company divides other financial instruments into several portfolios according to their
credit risk characteristics and determines the expected credit loss of each portfolio. Portfolios of notes
receivable accounts receivable and other receivables for provision of expected credit losses and the
basis for the Company’s determination are as follows:
* Portfolios for provision of expected credit losses and the determination basis:
Item Portfolio Determination basis
Commercial acceptance bills The expected credit loss is measured with
Notes receivable Finance company acceptance the default risk exposure and the expected
bills credit loss rate for the entire lifetime based
Receivables financing Bank acceptance bills on status quo and the forecast of future
Related parties in the scope economic conditions by reference to
Accounts receivable
of the consolidated financial historical credit loss experience.
105 / 233Annual Report 2025
statements
Account age analysis
Consolidated balance of
related-parties current The expected credit loss is measured with
accounts - provisional the default risk exposure and the expected
estimate of input tax credit loss rate for the following 12 months
Other receivables Related parties in the scope or the entire lifetime based on status quo
of the consolidated financial and the forecast of future economic
statements conditions by reference to historical credit
Account age analysis loss experience.House lease deposit
* Parallel table of account age portfolios and expected credit loss rates
Expected credit
Expected credit loss loss rate of Expected credit
rate of accounts accounts loss rate of
Account age
receivable receivable (direct other accounts
(traditional business) office supplies receivable
business)
Within one year (0-6 months (inclusive)) 0.50%
5.00%5.00%
Within one year (6-12 months (inclusive)) 5.00%
1-2 years 30.00% 10.00% 30.00%
2-3 years 60.00% 50.00% 60.00%
More than 3 years 100.00% 100.00% 100.00%
If the Company no longer reasonably expects that the contractual cash flow of a financial asset can
be recovered in whole or in part it will directly write down the book balance of the financial asset.
12. Bills receivable
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.Aging methods for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for bad debt provisions made on an individual basis
□ Applicable √ Not applicable
13. Accounts receivable
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.
106 / 233Annual Report 2025
Aging methods for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.Judgment criteria for bad debt provisions made on an individual basis
√ Applicable □ Not applicable
The Company makes provision for impairment of accounts receivable separately based on
distinctive credit risk characteristics such as significantly deteriorated credit standing low possibility of
further repayment and ongoing credit impairment of counterparties.
14. Receivables financing
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.Aging methods for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for bad debt provisions made on an individual basis
□ Applicable √ Not applicable
15. Other receivables
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.Aging methods for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicableFor details please refer to “(6) Impairment test method and accounting treatment for impairment offinancial instruments” under Note V (11) Financial Instruments.Judgment criteria for bad debt provisions made on an individual basis
√ Applicable □ Not applicable
The Company makes provision for impairment of other receivables separately based on distinctive
credit risk characteristics such as significantly deteriorated credit standing low possibility of further
repayment and ongoing credit impairment of counterparties.
16. Inventories
√ Applicable □ Not applicable
Inventory categories issue valuation method inventory system amortization method for low value
consumables and packages
√ Applicable □ Not applicable
(1) Classification and cost of inventories
Inventories are classified into materials in transit raw materials turnover materials goods-in-stock
goods in production goods in transit commissioned processing materials and so forth.
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Inventories are initially measured at cost. The cost of inventories includes purchase cost processing
cost and other expenditures incurred to bring inventory to its current location and state.
(2) Valuation of inventory COGS
Inventory COGS is valued using the weighted average method.
(3) Inventory system
The perpetual inventory system is adopted.
(4) Amortization of low-value consumables and packaging materials
* Low-value consumables are amortized using the immediate write-off method
* Packaging materials are amortized using the immediate write-off method
Criteria for recognizing and providing for provision for decline in value of inventories
√ Applicable □ Not applicable
At the balance sheet date the inventories are measured according to the cost or the net realizable
value whichever is lower. If the cost of inventories is higher than the net realizable value the provision
for decline in value of inventories is made. The net realizable value refers in the ordinary course of
business to the amount after deducting the estimated cost of completion estimated sale expense and
relevant taxes from the estimated sale price of inventories.Net realizable value of held-for-sale commodity stocks such as finished goods goods-in-stock and
held-for-sale raw materials during the normal course of production and operation shall be determined
by their estimated selling price less the related selling expenses and taxes; the net realizable value of
material inventories which need to be processed during the normal course of production and operation
shall be determined by the amount after deducting the estimated cost of completion estimated selling
expenses and relevant taxes from the estimated selling price of finished goods; the net realizable value of
inventories held for execution of sales contracts or labor contracts shall be calculated on the ground of
the contracted price. If an enterprise holds more inventories than the quantity stipulated in the sales
contract the net realizable value of the exceeding part shall be calculated on the ground of general
selling price.If the factors which cause any value write-down of the inventories have disappeared thus causing
the inventories’ net realizable value to be higher than their carrying amount the amount of write-down is
reversed from the provision for the loss on decline in value of inventories which has been made. The
reversed amount is included in the profits and losses of the current period.Categories of groups and the basis for determining the allowance for decline in value of
inventories on a grouping basis and the basis for determining the net realizable value of different
categories of inventories
□ Applicable √ Not applicable
Calculation method and basis for determining the net realizable value of each age group for the
purpose of recognizing the net realizable value of inventories based on the age of the inventories
□ Applicable √ Not applicable
17. Contract assets
□ Applicable √ Not applicable
18. Non-current assets or disposal groups held for sale
√ Applicable □ Not applicable
Details are provided as follows:
Recognition standards and accounting treatment for non-current assets or disposal groups held
for sale
√ Applicable □ Not applicable
108 / 233Annual Report 2025
The Company classifies a non-current asset or disposal group as held for sale when the carrying
amount of the non-current asset or disposal group will be recovered through a sale transaction (including
non-monetary asset exchange with commercial substance) rather than through continuing use.The Company classifies non-current assets or disposal groups meeting all of the following
conditions as held for sale:
(1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions;
(2) Sales are highly likely to occur that is the Company has already made a resolution on a sale
plan and obtained a certain purchase commitment and the sale is expected to be completed within one
year. The sale shall have been approved if the relevant regulations require the approval of the relevant or
regulatory authority governing the Company.If the carrying amount of non-current assets (excluding financial assets deferred income tax assets
or assets formed by employee remuneration) or disposal groups meeting all of the following conditions
as held for sale is higher than the fair value minus the net amount of the sale costs the carrying amount
will be written down to the net amount of fair value minus the sale costs the amount written down will
be recognized as asset impairment losses and included in the profit or loss for the current period and
provision for impairment of assets held for sale will be made.Criteria for identification and presentation of discontinued operation
√ Applicable □ Not applicable
Discontinued operation is a component that satisfies one of the following conditions and is
separately identifiable and has been disposed of by the Company or is classified by the Company as
held for sale:
(1) It represents a separate major line of business or geographical area of operations;
(2) It is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations; or
(3) It is a subsidiary acquired exclusively with a view to resale.
The profit and loss from continuing operations and the profit and loss from discontinued operations
are separately presented in the income statement. Operational gains and losses such as impairment losses
and reversal amounts and disposal gains and losses from discontinued operations are reported as gains
and losses from discontinued operations. For the discontinued operations reported in the current period
the Company re-reports the information previously reported as profits and losses from continuing
operations as the profits and losses from discontinued operations for the comparable accounting period
in the current financial statements.
19. Long-term equity investments
√ Applicable □ Not applicable
(1) Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement and exists only when
decisions about the relevant activities of the arrangement require the unanimous consent of the parties
sharing control. The Company together with the other joint venture parties can jointly control over the
investee and are entitled to the right of the net assets of the investee who is joint venture of the
Company.The term “significant influences” refers to the power to participate in making decisions on the
financial and operating policies of the invested enterprise but not to control or do joint control together
with other parties over the formulation of these policies. Where the investor can exercise significant
influence over the investee the investee is an associate of the Company.
(2) Determination of initial investment cost
* Long-term equity investments formed through business combination of entities
For long-term equity investments in subsidiaries formed by business combination under common
control the initial investment cost of long-term equity investments shall be determined based on share of
the book value of the owners’ equity of the acquiree in the consolidated financial statements of the
ultimate controlling party at the date of combination. The difference between the initial investment cost
of the long-term equity investment and the carrying value of the consideration paid is adjusted to the
equity premium in the capital reserve. If the capital premium in capital reserve is not sufficient to offset
109 / 233Annual Report 2025
the difference the remaining balance is adjusted against retained earnings. In connection with imposing
control over the investee under joint control as a result of additional investment and other reasons the
difference between the initial investment cost of the long-term equity investment recognized in
accordance with the above principles and the carrying amount of the long term equity investment before
the combination and the sum of carrying amount of newly paid consideration for additional shares
acquired on the date of combination is adjusted to equity premium. If the capital premium in capital
reserve is not sufficient to offset the difference the remaining balance is adjusted against retained
earnings.For long-term equity investment in subsidiaries formed by business combination not under common
control the cost of the combination ascertained on the date of acquisition shall be taken as the initial
investment cost of the long-term equity investments. In connection with imposing control over the
investee not under joint control as a result of additional investment and other reasons the initial
investment cost is the sum of the carrying amount of the equity investment originally held and the newly
increased initial investment cost.* Long-term equity investments acquired by means other than business combination
The initial investment cost of a long-term equity investment obtained by the Company by cash
payment shall be the purchase cost paid actually.The initial investment cost of a long-term equity investment obtained by the Company by means of
issuance of equity securities shall be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
* Long-term equity investment accounted for by cost method
Long-term equity investment in subsidiaries of the Company is accounted for by cost method
unless the investment meets the conditions for holding for sale. except for the actual consideration paid
for the acquisition of investment or the declared but not yet distributed cash dividends or profits which
are included in the consideration investment gains are recognized as the Company’s shares of cash
dividends or profits declared by the investee.* Long-term equity investment accounted for by equity method
Long-term equity investments of associates and joint ventures are accounted for by equity method.Where the initial investment cost of a long-term equity investment exceeds the investor’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition no adjustment is made to the
initial investment cost of long-term equity investments; where the initial investment cost is less than the
investor’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition the
difference is included in the profits or losses of the current period and the cost of the long-term equity
investment is adjusted simultaneously.The Company recognizes the investment income and other comprehensive income according to the
shares of net profit or loss and other comprehensive income realized by the investee which it shall be
entitled or shared respectively and simultaneously makes adjustment to the carrying amount of
long-term equity investments; the carrying amount of long-term equity investments shall be reduced by
attributable share of the profit or cash dividends for distribution declared by the investee. In relation to
other changes of owners’ equity except for net profit and loss other comprehensive income and profit
distributions of the investee (hereinafter referred to as “other changes in owners’ equity”) the carrying
amount of long-term equity investments shall be adjusted and included in the owners’ equity.When determining the amount of proportion of net profit or loss other comprehensive income and
other changes in owners’ equity in the investee which it entitles fair value of each identifiable assets of
the investee at the time when the investment is obtained shall be used as the basis and adjustment shall
be made to the net profit and other comprehensive income of the investee according to the accounting
policies and accounting period of the Company.The unrealized profit or loss resulting from transactions between the Company and its associates or
joint ventures shall be offset in proportion to the investor’s equity interest of investee based on which
investment income or loss shall be recognized. However the situation that the assets invested or sold
constitute business is excluded. Any losses resulting from internal transactions which are attributable to
impairment of assets shall be fully recognized.The Company shall recognize the net losses of the joint ventures or associates until the book value
of the long-term equity investment and other long-term rights and interests which substantially form the
net investment made to the invested entity are reduced to zero unless the joint ventures or associates
have the obligation to undertake extra losses. If the joint ventures or associates realize net profits in the
110 / 233Annual Report 2025
future the Company resumes recognizing its share of profits after the share of profits makes up for the
share of unrecognized losses.* Disposal of long-term equity investments
For disposal of long-term equity investment the difference between the carrying amount and the
consideration actually received shall be included in the current profit or loss.For partial disposal of long-term equity investments accounted for by the equity method if the
remaining equity is still accounted for by the equity method the other comprehensive income calculated
and recognized by the original equity method shall be carried forward in corresponding proportion by
using the same basis as the investee used for direct disposal of relevant assets or liabilities. Other
changes in owners’ equity shall be carried forward to the profits or losses of the current period on a pro
rata basis.When the joint control or material influence over the investee is lost due to disposal of equity
investment and other reasons other comprehensive income recognized in the original equity investment
due to the use of the equity method shall when it is no longer calculated by the equity method be
subject to the accounting treatment on the same basis as the investee used for direct disposal of relevant
assets or liabilities. Other changes in owners’ equity shall be all transferred into the profits or losses of
the current period when they are no longer calculated by the equity method.When the control over the investee is lost due to partial disposal of equity investment and other
reasons the remaining equities after disposal shall be accounted for by equity method in preparing
individual financial statements provided that joint control or material influence over the investee can be
imposed and shall be adjusted as if such remaining equities has been accounted for by the equity
method since they are obtained. The other comprehensive income recognized before the control over the
investee is obtained shall be carried forward in proportion by using the same basis as the investee used
for direct disposal of relevant assets or liabilities and the other changes in owners’ equity calculated and
recognized using the equity method shall be carried forward to the profits or losses of the current period
on a pro rata basis. Where the remaining equities after disposal cannot impose joint control or material
influence over the investee they shall be recognized as financial assets and the difference between fair
value and the carrying amount on the date when control is lost shall be included in the profits or losses
of the current period. All other comprehensive income and other changes in owners’ equity recognized
before the control over the investee is obtained shall be carried forward.In respect of stepwise disposal of equity investment in a subsidiary through multiple transactions
until control is lost where the transactions constitute a basket of transactions the Company accounts for
the transactions as a transaction of disposal of a subsidiary until control is lost; however the difference
between the amount received each time for disposal before control is lost and the carrying amount of
long-term equity investments corresponding to the disposal of equity is recognized as other
comprehensive income in the individual financial statements and is transferred to the profits or losses of
the current period during which control is lost upon loss of control. Where the transactions do not
constitute a basket of transactions each transaction shall be accounted for separately.
20. Investment real estate
(1). If the cost measurement model is applied:
Depreciation or amortization method
Investment real estate is properties held to earn rental income or for capital appreciation or both
and include leased land use rights land use rights held for capital appreciation and subsequent transfer
and buildings that are leased (including buildings constructed by the Company or developed for the
purpose of leasing and buildings under construction or development that are intended for leasing in the
future).Subsequent expenditures related to investment real estate are recognized in investment real estate
costs when it is probable that economic benefits will flow to the Company and the cost can be reliably
measured. Otherwise the expenditures are recognized in the current profit and loss when incurred.The Company uses the cost measurement model to measure existing investment real estate. For
investment real estate measured using the cost model—buildings intended for leasing—the same
depreciation policy as that for the Company’s fixed assets is applied. Land use rights held for leasing are
amortized in accordance with the same policy as for intangible assets.
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21. Fixed assets
(1). Recognition conditions
√ Applicable □ Not applicable
Fixed assets are tangible assets that are held for use in the production or supply of goods or services
for rental to others or for administrative purposes; and have a useful life of more than one accounting
year. Fixed assets are recognized when they meet the following conditions:
* It is probable that the economic benefits associated with the fixed assets will flow to the
enterprise;
* The cost of fixed assets can be reliably measured.A fixed asset is initially measured at its cost (and considering the impact of expected abandonment
cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when their
related economic benefits are likely to flow in to the Company and their costs can be reliably measured;
the book value of the replaced part is derecognized; all other subsequent expenditures are included in the
profits or losses of the current period at the time of occurrence.
(2). Method for depreciation
√ Applicable □ Not applicable
Fixed assets are depreciated by categories using the straight-line method and the depreciation rates
are determined by categories based upon their estimated useful lives and their estimated residual value.For fixed assets with provision for impairment accrued the depreciation amount shall be determined
according to the book value after deduction of the impairment provision and the remaining useful life in
the future period. Where the parts of a fixed asset have different useful lives or cause economic benefits
for the enterprise in different ways different depreciation rates or depreciation methods shall be applied
and each part shall be depreciated separately.The methods for depreciation useful lives of depreciation residual value and annual depreciation
rates of various categories of fixed assets are as follows:
Method for Useful lives of Residual value Annual
Category
depreciation depreciation (year) ratio depreciation rate
Property and buildings Straight-line method 20 5% 4.75%
Machinery and equipment Straight-line method 10 5-10% 9.5-9%
Transportation vehicles Straight-line method 4-10 0-10% 25-9%
Other equipment Straight-line method 2-10 0-10% 47.5-9.5%
22. Construction in progress
√ Applicable □ Not applicable
Construction in progress is measured at the actual cost incurred. Actual cost includes construction
cost installation cost borrowing expense qualified for capitalization and other necessary expenditures
incurred before the construction in progress reaches its intended use status. When the construction in
progress reaches the intended use status it shall be transferred to fixed assets and its depreciation shall
be accrued from the next month. The standards and time point for carrying forward the Company’s
construction in progress to fixed assets are as follows:
Category Standards and time point for carrying forward them to fixed assets
(1) The construction project and ancillary projects are substantially completed; (2) the
construction project meets the predetermined design requirements and is accepted by
units responsible for surveying design construction supervision etc.; (3) the
construction project is accepted by fire department land department planning
Houses buildings and
department or other external authorities if such acceptance is required; (4) if the
decoration of fixed assets
construction project has reached the predetermined state for use but the final account
for completion has not been made the project shall be carried forward to fixed assets
at the value estimated according to the actual cost of the project from the date when it
reaches the predetermined state for use.Machines and other (1) The equipment and supporting facilities are installed; (2) the equipment can
equipment that need to be maintain normal and stable operation for a period of time after commissioning; (3) the
installed and production equipment can stably output qualified products in a period of time; (4) the
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Category Standards and time point for carrying forward them to fixed assets
commissioned and other equipment is accepted by asset management personnel and users.long-term assets
23. Borrowing costs
√ Applicable □ Not applicable
(1) Criteria for recognition of capitalized borrowing costs
For borrowing costs incurred by the Company that are directly attributable to the acquisition
construction or production of assets qualified for capitalization the costs will be capitalized and
included in the costs of the related assets. Other borrowing costs shall be recognized as expense in the
period in which they incur and are included in the current profit or loss.Assets qualified for capitalization are assets (fixed assets investment property inventories etc.)
that necessarily take a substantial period of time for acquisition construction or production to get ready
for their intended use or sale.
(2) Capitalization period of borrowing costs
The capitalization period shall refer to the period between the commencement and the cessation of
capitalization of borrowing costs excluding the period in which capitalization of borrowing costs is
temporarily suspended.Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
* expenditures for the assets (including cash paid transferred non-currency assets or expenditure
for holding debt liability for the acquisition construction or production of assets qualified for
capitalization) have been incurred;
* borrowing costs have been incurred;
* acquisition construction or production that are necessary to enable the asset reach its intended
usable or saleable condition have commenced.Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset
under acquisition and construction or production ready for the intended use or sale.
(3) Suspension of capitalization period
Capitalization of borrowing costs shall be suspended during periods in which the acquisition
construction or production of a qualifying asset is interrupted abnormally when the interruption is for a
continuous period of more than 3 months; if the interruption is a necessary step for making the
qualifying asset under acquisition and construction or production ready for the intended use or sale the
capitalization of the borrowing costs shall continue. The borrowing costs incurred during such
suspension period shall be recognized as the current profit or loss. When the acquisition and construction
or production of the asset resumes the capitalization of borrowing costs commences.
(4) Calculation of capitalization rate and amount of borrowing costs
For specific borrowings for the acquisition construction or production of assets qualified for
capitalization the amount of borrowing costs for capitalization is determined through borrowing costs of
the specific borrowings actually incurred in the current period minus the interest income earned on the
unused borrowing loans as a deposit in the bank or as investment income earned from temporary
investment.For general borrowings for the acquisition construction or production of assets qualified for
capitalization the to-be-capitalized amount of interests on the general borrowings shall be calculated and
determined by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the specifically borrowed loans by the capitalization rate of the general borrowings
used. The capitalization rate shall be calculated and determined according to the weighted average actual
interest rate of the general borrowings.During the capitalization period the exchange difference between the principal and interest of
dedicated borrowings in foreign currency is capitalized and included in the cost of the assets qualified
for capitalization. Exchange differences arising from the principal and interest of borrowings in foreign
currency other than dedicated borrowings in foreign currency are included in the profits or losses of the
current period.
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24. Biological assets
□ Applicable √ Not applicable
25. Oil and gas assets
□ Applicable √ Not applicable
26. Intangible assets
(1). Useful life and the basis for its determination estimation amortization method or review
procedure
√ Applicable □ Not applicable
* Valuation method of intangible assets
A. Intangible assets are initially measured at cost upon acquisition by the Company;
The costs of externally purchased intangible assets include the purchase price relevant taxes and
expenses paid and other expenditures directly attributable to putting the asset into condition for its
intended use.B. Subsequent measurement
The useful life of intangible assets shall be analyzed and judged upon acquisition.As for intangible assets with finite useful life they are amortized over the term in which economic
benefits are brought to the enterprise; if the term in which economic benefits are brought to the
enterprise by intangible assets cannot be estimated the intangible assets shall be regarded as intangible
assets with indefinite useful life and shall not be amortized.* Estimated useful lives for the intangible assets with finite useful life
Residual
Amortization Basis for determining
Item Estimated useful lives value
method expected useful life
ratio
Straight-line Certificate of land use
Land use rights 50 years 0
method rights
Image identification Straight-line
12 months to 64 months 0 License contract
rights method
Straight-line Expected years of
Software 3 to 10 years 0
method benefit
Straight-line
Patent right 10 years 0 Patent right certificate
method
Straight-line Expected years of
Others 19 months to 120 months 0
method benefit
Note: land use rights newly acquired through the increase of capital by M&G Holdings (Group) Co.Ltd. to the Company in 2010 are stated at valuation and amortized at the remaining useful life.
(2). Scope of R&D expenditures and corresponding accounting treatment methods
√ Applicable □ Not applicable
* Scope of R&D expenditures
Expenditures incurred by the Company in the course of research and development include relevant
employee remuneration for personnel engaged in R&D activities consumed materials related
depreciation and amortization expenses and other relevant expenditures which are classified as follows:
A. Remuneration and benefits
Remuneration and benefits refer to the wages and salaries basic endowment insurance premiums
basic medical insurance premiums unemployment insurance premiums work-related injury insurance
premiums maternity insurance premiums and housing provident funds for the Company’s R&D staff
and the labour costs of external R&D personnel.B. Inventory consumption
Inventory consumption refers to the expenditures actually incurred by the Company in carrying out
R&D activities including the costs of directly consumed materials fuel and power.C. Depreciation and amortisation expenses
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Depreciation and amortisation charges refer to the expenses incurred from the depreciation of
instruments and equipment used in R&D activities and the expenses amortized for software intellectual
property and non-patented technologies (proprietary technologies licenses design and calculation
methods etc.).D. Design and sample costs
Design and sample costs refer to the costs incurred in the conception development and
manufacturing of new products and new processes and the design of processes technical specifications
procedures and operational characteristics including the costs incurred in creative design activities for
the acquisition of innovative creative and breakthrough products.* Specific criteria for the division of research phase and development phase
The expenses for internal research and development projects of the Company are divided into
expenses in the research phase and expenses in the development phase.Research phase: scheduled innovative investigations and research activities to obtain and
understand scientific or technological knowledge.Development phase: apply the research outcomes or other knowledge to a plan or design prior to a
commercial production or use in order to produce new or essentially-improved materials devices
products etc.* Specific criteria for capitalization at development phase
Expenditure in the research phase is included in the profit or loss for the current period at the time
of occurrence. Expenses in the development phase are recognized as an intangible asset when all of the
following conditions are satisfied otherwise are included in the current profit or loss:
A. it is technically feasible to complete the intangible asset so that it will be available for use or
sale;
B. there is an intention to complete the intangible asset for use or sale;
C. the intangible asset can produce economic benefits including there is evidence that the products
produced using the intangible asset has a market or the intangible asset itself has a market; if the
intangible asset is for internal use there is evidence that there exists usage for the intangible asset;
D. there is sufficient support in terms of technology financial resources and other resources in
order to complete the development of the intangible asset and there is capability to use or sell the
intangible asset;
E. the expenses attributable to the development stage of the intangible asset can be measured
reliably.If it is impossible to distinguish the expenses in the research phase from the expenses in the
development phase all the incurred research and development expenses shall be included in the current
profit or loss.
27. Impairment of long-term assets
√ Applicable □ Not applicable
Long-term assets such as long-term equity investments investment real estate measured at the cost
method fixed assets construction in progress right-of-use assets intangible assets with finite useful life
and oil and gas assets are tested for impairment if there is any indication that an asset may be impaired at
the balance sheet date. If the result of the impairment test indicates that the recoverable amount of the
asset is less than its carrying amount the difference shall be used to make impairment provision and an
impairment loss are recognized. The recoverable amount is the higher of the net amount of asset’s fair
value less costs to sell and the present value of the future cash flows expected to be derived from the
asset. Provision for asset impairment is determined and recognized on the individual asset basis. If it is
not possible to estimate the recoverable amount of an individual asset the recoverable amount of a
group of assets to which the asset belongs to is determined. An assets group is the smallest group of
assets that is able to generate cash inflow independently.Impairment test to goodwill formed by business combination intangible assets with indefinite
useful life and intangible assets not ready to use shall be carried out at least at the end of each year
regardless of whether there are any indications of impairment.When the Company carries out impairment test to goodwill the Company shall as of the
purchasing day allocate on a reasonable basis the carrying amount of the goodwill formed by enterprise
115 / 233Annual Report 2025
merger to the relevant asset groups or if there is a difficulty in allocation the Company shall allocate it
to the portfolio of asset groups. Relevant asset groups or portfolio of asset groups refer to the asset
groups or portfolio of asset groups that can benefit from the synergistic effect of business combination.For the purpose of impairment test to the relevant asset groups or portfolio of asset groups
containing goodwill if any evidence shows that the impairment of asset groups or portfolio of asset
groups related to goodwill exists an impairment test will be made firstly on the asset groups or portfolio
of asset groups not containing goodwill thus calculating the recoverable amount and comparing it with
the relevant carrying amount so as to recognize the corresponding impairment loss. Then the Company
will make an impairment test to the asset groups or portfolio of asset groups containing goodwill and
compare their carrying value with their recoverable amount. Where the recoverable amount is lower than
the carrying value thereof the amount of impairment loss is first deducted and allocated to the carrying
value of goodwill in the asset groups or portfolio of asset groups and then the carrying value of other
assets other than goodwill in the asset groups or portfolio of asset groups is deducted according to the
percentages of the carrying value of such other assets. Once the above asset impairment loss is
recognized it will not be reversed in the subsequent accounting periods.
28. Long-term prepaid expenses
√ Applicable □ Not applicable
Long-term prepaid expenses are expenses which have occurred with amortization period over 1
year and shall be borne by the current period and subsequent periods.Amortization periods and amortization methods of various expenses are as follows:
Item Amortization period Amortization method
Decoration fee 3 to 5 years Expected years of benefit
Others 2 years Expected years of benefit
29. Contract liabilities
√ Applicable □ Not applicable
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company’s obligation to
transfer goods or provide services to customers for consideration received or receivable from customers
is presented as contract liabilities. Contract assets and contract liabilities under the same contract are
presented in net amounts.
30. Employee benefits
(1). Accounting treatment of short-term benefits
√ Applicable □ Not applicable
During the accounting period when employees provide service the Company will recognize the
short-term benefits actually incurred as liabilities and the liabilities will be included in the current profit
or loss or relevant costs of assets.The Company will pay social insurance and housing funds for the employees and will make
provision of trade union funds and employee education costs in accordance with the requirements.During the accounting period when employees provide service the Company will determine relevant
amount of employee benefits in accordance with the required provision basis and provision ratios.The employee welfare expenses incurred by the Company are included in the current profit or loss
or related asset costs based on the actual amounts when they actually occur. Among them non-monetary
benefits are measured at fair value.
(2). Accounting treatment of post-employment benefits
√ Applicable □ Not applicable
* Defined contribution scheme
The Company will pay basic pension insurance and unemployment insurance in accordance with
the relevant provisions of the local government for the employees. During the accounting period when
employees provide service the Company will calculate the amount payable which will be recognized as
116 / 233Annual Report 2025
liabilities in accordance with the local stipulated basis and proportions and the liabilities will be
included in the current profit or loss or costs of related assets.* Defined benefit scheme
The welfare responsibilities generated from defined benefit scheme based on the formula
determined by projected unit credit method will be vested to the service period of employees and
included into the current profit or costs of related assets.The deficit or surplus generated from the present value of obligations of the defined benefit scheme
minus the fair value of the assets of defined benefit scheme is recognized as net liabilities or net assets.When the defined benefit scheme has surplus the Company will measure the net assets of the defined
benefit scheme at the lower of the surplus of defined benefit scheme and the upper limit of the assets.All obligations of the defined benefit plan including the expected duty of payment within 12
months after the end of annual reporting period during which employees provide service shall be
discounted based on the bond market yield of sovereign bond matching the term of obligations of the
defined benefit plan and currency or corporate bonds of high quality in the active market on the balance
sheet date.The service cost incurred by defined benefit scheme and the net interest of the net liabilities and net
assets of the defined benefit scheme will be included in the current profit or loss or costs of relevant
assets. The changes as a result of re-measurement of the net defined benefit liabilities or assets shall be
recognized in other comprehensive income and shall not be reversed to profit or loss at subsequent
accounting period. When the original defined benefit plan is terminated amount originally included in
other comprehensive income shall be transferred to undistributed profit in the scope of equity.When the defined benefit scheme is settled the gain or loss is confirmed based on the difference
between the present value of obligations and the settlement price of the defined benefit scheme as at the
balance sheet date.
(3). Accounting treatment of termination benefits
√ Applicable □ Not applicable
Where the Company provides termination benefits to its employees the employee benefits
liabilities resulting from termination benefits are recognized on the following date (whichever is earlier)
and are included in the current profit or loss: when the Company cannot unilaterally withdraw the
termination benefits provided due to the cancellation of the labor relationship with the employees or the
layoff proposal; or when the Company recognizes the costs or expenses of reorganization relating to
payment of termination benefits.
(4). Accounting treatment of other long-term employees’ benefits
□ Applicable √ Not applicable
31. Estimated liabilities
√ Applicable □ Not applicable
The Company shall recognize the obligations related to contingencies when all of the following
conditions are satisfied:
(1) obligation is a present obligation of the Company;
(2) it is probable that an outflow of economic benefits of the Company will be required to settle the
obligation; and
(3) the amount of the obligation can be measured reliably.
Estimated liabilities shall be initially measured at the best estimate of the expenses required to settle
the related present obligation.Factors pertaining to a contingency such as risk uncertainties and time value of money shall be
taken into account as a whole in getting the best estimate. Where the effect of the time value of money is
material the best estimate shall be determined by discounting the related future cash outflow.Where the expenses required have a successive range and the possibilities of occurrence of each
result are the same in the range the best estimate shall be determined according to the median value
within the range; in other cases the best estimate shall be determined as below:
* If contingencies involve a single item the best estimate shall be determined according to the most
possible occurrence amount.
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* If contingencies involve multiple items the best estimate shall be calculated and determined in
accordance with various possible outcomes and related possibilities.Where some or all of the expenses required to settle an estimated liability are expected to be
reimbursed by a third party the reimbursement is separately recognized as an asset when it is virtually
certain that the reimbursement will be received. The amount recognized for the reimbursement is limited
to the carrying amount of the liability recognized.The Company reviews the carrying value of the estimated liabilities at the balance sheet date. If
there is any exact evidence indicating that the carrying value cannot really reflect the current best
estimate the carrying value shall be adjusted in accordance with the current best estimate.
32. Share-based payments
√ Applicable □ Not applicable
Share-based payments are transactions that grant equity instruments or assume equity-instrument
based liabilities for receiving services rendered by employees or other parties. The Company’s
share-based payments included equity-settled share-based payments and cash-settled share-based
payments.
(1) Equity-settled share-based payments and equity instruments
Equity-settled share-based payments made in exchange for services rendered by employees are
measured at the fair value of equity instruments granted to employees. Share-based payment transactions
vested immediately after the date of grant shall be included in the relevant cost or expense based on the
fair value of equity instruments at the date of grant and the capital reserve shall be increased
accordingly. For share-based payment transactions vested only when the services during the waiting
period are completed or the specified performance conditions are satisfied after the grant the Company
shall at each balance sheet date during the waiting period include the services obtained during the
period in relevant cost or expense at the fair value of the date of grant according to the best estimate of
the number of vested equity instruments and the capital reserve shall be increased accordingly.If the terms of the equity-settled share-based payments are amended the Company shall recognize
the services received at least based on the situation before the amendment is made. In addition any
amendment resulting in the increase of the fair value of the equity instrument granted or changes that are
beneficial to employees on the amendment date will be recognized as an increase in the service
received.During the waiting period if the granted equity instrument is cancelled the Company will accelerate
the vesting thereof immediately include the remaining amount that should be recognized in the waiting
period in the current profit or loss and recognize the capital reserve. However if new equity instruments
are vested and they are verified at the vesting date of new equity instrument as alternatives vested to cancel
equity instruments the treatment on the new equity instrument is in conformity with the modified
treatment on disposal of equity instrument.
(2) Cash-settled share-based payments and equity instruments
Cash-settled share-based payments are measured at the fair value of the liabilities calculated and
determined on the basis of shares or other equity instruments undertaken by the Company. Share-based
payment transactions vested immediately after the date of grant shall be included in the relevant cost or
expense based on the fair value of liabilities undertook at the date of grant and the liabilities shall be
increased accordingly. For share-based payment transactions vested only when the services during the
waiting period are completed or the specified performance conditions are satisfied after the grant the
Company shall include the services obtained during the period in relevant cost or expense at the fair
value of the liabilities undertook by the Company based on the best estimate of the vesting situation and
the liabilities shall be included accordingly. At each balance sheet date before the settlement and the
settlement date of relevant liabilities the fair value of the liabilities is remeasured and its changes are
included in the current profit or loss.If the Company modifies the terms and conditions of a cash-settled share-based payment agreement
so that it becomes an equity-settled share-based payment on the date of modification (regardless of
whether it occurs within or after the vesting period) the Company measures the equity-settled
share-based payment at the fair value on the grant date of the equity instrument and recognizes the
services acquired in capital reserve and derecognizes the liability recognized for the cash-settled
share-based payment on the date of modification with the difference between the two being recognized
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in profit or loss for the period. If the vesting period is lengthened or shortened as a result of the
modification the Company accounts for the modification in accordance with the modified vesting
period.
33. Preference shares perpetual bonds and other financial instruments
□ Applicable √ Not applicable
34. Revenue
(1). Accounting policies used in recognition and measurement of revenue by type of business
√ Applicable □ Not applicable
* Accounting policies used in recognition and measurement of revenue
The Company recognizes revenue when its performance obligations in the contract are fulfilled
that is the control over the relevant goods or services is obtained by the customer. Obtaining control
over related goods or services means being able to lead the use of the goods or services and obtain
almost all of the economic benefits from the goods or services.If the contract contains two or more performance obligations the Company will at the date of the
contract allocate the transaction price to each individual performance obligation in accordance with the
relative proportion of the stand-alone selling price of the goods or services promised by each individual
performance obligation. The Company measures revenue based on the transaction price allocated to each
individual performance obligation.Transaction price refers to the amount of consideration that the Company expects to be entitled to
receive due to the transfer of goods or services to customers excluding amounts collected on behalf of
third parties and amounts expected to be returned to customers. The Company determines the transaction
price in accordance with the terms of the contract and combined with its past customary practices. When
determining the transaction price the Company considers the impact of variable consideration major
financing components in the contract non-cash consideration consideration payable to customers and
other factors. The Company determines the transaction price that includes variable consideration at an
amount that does not exceed the amount of accumulated recognized revenue that is unlikely to be
significantly reversed when the relevant uncertainty is eliminated. If there is a major financing
component in the contract the Company determines the transaction price based on the amount payable
in cash when the customer obtains control over the goods or services and amortizes the difference
between the transaction price and the contract consideration with the actual interest rate method during
the contract period.The performance obligation is fulfilled during a certain period of time if one of the following
conditions is satisfied otherwise the performance obligation is fulfilled at a certain point in time:
* the customer obtains and consumes the economic benefits brought by the Company’s performance
at the same time as the Company’s performance.* the customer can control the products under construction during the Company’s performance.* the goods produced during the Company’s performance have irreplaceable uses and the Company
has the right to collect payment for the cumulative performance part that has been completed so far
during the entire contract period.For performance obligations performed within a certain period of time the Company recognizes
revenue in accordance with the performance progress during that period except where the performance
progress cannot be reasonably determined. The Company considers the nature of the goods or services
and adopts the output method or the input method to determine the performance progress. When the
performance progress cannot be reasonably determined and the cost incurred is expected to be
compensated the Company recognizes the revenue according to the amount of the cost incurred until the
performance progress can be reasonably determined.For performance obligations performed at a certain point in time the Company recognizes revenue
at the point when the customer obtains control over the relevant goods or services. When judging
whether the customer has obtained control over goods or services the Company considers the following
signs:
* the Company has the current right to receive payment for the goods or services that is the
customer has the current payment obligation for the goods or services;
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* the Company has transferred the legal ownership of the goods to the customer that is the
customer has the legal ownership of the goods;
* the company has transferred the goods to the customer in kind that is the customer has taken
possession of the goods in kind;
* the company has transferred the main risks and rewards of the ownership of the goods to the
customer that is the customer has obtained the main risks and rewards of the ownership of the goods;
* the customer has accepted the goods or services.The Company determines whether the Company’s status is that of a principal or agent when
engaging in a transaction based on whether it has control over the goods or services prior to transferring
them to the customer. If the Company is able to control the goods or services before transferring them to
the customer the Company is the principal responsible party and recognizes revenue based on the total
consideration received or receivable. Otherwise the Company shall recognize revenue as an agent based
on the amount of commissions or fees to which it is expected to be entitled.* Disclosure of specific revenue recognition methods and measurement methods by the type of
business
A. Sale contract: The sale contract between the Company and its customers usually contains only
the performance obligation for the transfer of goods. The Company usually takes into account the
following factors in order to obtain the current right of collection of goods the transfer of primary risks
and rewards on the ownership of the goods the transfer of legal ownership of the goods the transfer of
physical assets of the goods and the customer’s acceptance of the goods as the time point of revenue
recognition.B. Supply chain service: The provision of integrated logistics and supply chain services is a
performance obligation performed at a certain time point and revenue is recognized when the
corresponding services have been provided the payment has been collected or the right to collect
payment has been obtained and the corresponding economic benefits are likely to flow in.C. Others (including franchise management fee hardware and software and material income):
Revenue is recognized at the time point when the customer obtains control over the corresponding goods
or services.
(2). Different revenue recognition and measurement methods for the same type of business
adopting different business models
□ Applicable √ Not applicable
35. Contract cost
√ Applicable □ Not applicable
Contract cost includes contract performance cost and contract acquisition cost.If the cost incurred by the Company for the performance of the contract does not fall within the
scope of relevant standards and regulations for inventories fixed assets or intangible assets it shall be
recognized as an asset as the contract performance cost when the following conditions are met:
* the cost is directly related to a current or expected contract;
* the cost increases the Company’s future resources for fulfilling its performance obligations;
* the cost is expected to be recovered.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered
it will be recognized as an asset as the cost of obtaining the contract.Assets related to contract costs are amortized on the same basis as the revenue recognition of goods
or services related to the assets; however if the amortization period of cost of obtaining the contract
does not exceed one year the Company will include it in the current profit or loss when it occurs.If the carrying value of the assets related to the contract cost is higher than the difference between
the following two items the Company will make provision for impairment of the excess part and
recognize it as an asset impairment loss:
(1) the remaining consideration expected to be obtained due to the transfer of goods or services
related to the assets; and
(2) the costs expected to be incurred due to the transfer of the related goods or services.
If the depreciation factors in the previous period change later causing the aforementioned
difference to be higher than the carrying value of the assets the Company will reverse the
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previously-made provision for impairment and include it in the current profit or loss but the carrying
value of the assets after the reversal cannot exceed the carrying value of the assets at the date of reversal
under the assumption that no provision is made for the impairment.
36. Government subsidies
√ Applicable □ Not applicable
(1) Types
Government subsidies are monetary or non-monetary assets obtained by the Company from the
government free of charge. They are divided into government subsidies related to assets and government
subsidies related to income.Government subsidies related to assets refer to government subsidies obtained by the Company that
are used to purchase or construct or otherwise form long-term assets. Government subsidies related to
income refer to the government subsidies other than government subsidies related to assets.The specific standards for the Company to classify government subsidies into government subsidies
related to assets are as follows:
If obtained subsidies are used to purchase construct or otherwise form fixed assets intangible
assets and other long-term assets as expressly stipulated in government documents then such subsidies
are deemed as asset-related government subsidies.The specific standards for the Company to classify government subsidies into income-related
government subsidies are as follows:
If the government subsidies (excluding asset-related subsidies) are used to compensate relevant
costs or losses of the Company that have been already incurred or to be incurred in subsequent periods
then such subsidies are deemed as income-related government subsidies.Where there is no express regulation on the object of subsidies in government documents then the
Company will classify the government subsidies as assets-related or income-related depending on the
specific purpose that the subsidies are used for.
(2) Timing of recognition
Government subsidies are recognized when the Company can meet the conditions attached and can
receive them.
(3) Accounting treatment
Government subsidies related to assets shall offset the carrying amount of relevant assets or be
recognized as deferred income. If it is recognized as deferred income it shall be included in the current
profit and loss in a reasonable and systematic way within the useful life of the relevant assets (if it is
related to the daily activities of the Company it shall be included in other income; otherwise it shall be
included in the non-operating income);
Government subsidies related to income that are used for compensation for the relevant costs or
losses of the Company in subsequent periods are recognized as deferred income and are included in the
current profit or loss in the period in which the relevant costs expenses or losses are recognized (if they
are related to the daily activities of the Company they shall be included in other income; otherwise they
shall be included in the non-operating income) or offset the relevant costs or losses; Government
subsidies related to income that are used for compensation for the relevant costs or losses that the
Company has already incurred shall be directly included in the current profit or loss (if they are related
to the daily activities of the Company they shall be included in other income; otherwise they shall be
included in the non-operating income) or offset the relevant costs or losses.The Company’s policy-based concessional loans are classified into the following two conditions
and are accounted for respectively:
* If the lending bank provides loans to the Company at a policy-based preferential interest rate
after the Ministry of Finance allocates the interest-grant funds to the lending bank the actual borrowing
amount received is recognized as the entry value of the borrowing and the relevant borrowing expenses
are measured in accordance with the principal amount of the borrowing and policy-based preferential
interest rate.* When the government directly distributes the interest-grant funds to the Company the
corresponding discount will offset the relevant borrowing costs.
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37. Deferred income tax assets and liabilities
√ Applicable □ Not applicable
Income taxes include current income tax and deferred income tax. Except for income tax arising
from business combination and transactions or events that are directly included in owners’ equity
(including other comprehensive income) the Company includes current income tax and deferred income
tax in the current profit or loss.Deferred income tax assets and deferred income tax liabilities are calculated and recognized based
on the difference (temporary difference) between the tax base of assets and liabilities and their carrying
value.Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be
available against which deductible temporary differences can be offset. For deductible losses and tax
credits that can be reversed in the future period deferred tax assets shall be recognized to the extent that
it is probable that taxable profit will be available in the future to offset the deductible losses and tax
credits.Save as the exceptions deferred tax liabilities shall be recognized for the taxable temporary
difference.The exceptions for not recognizing deferred tax assets and liabilities include:
* the initial recognition of the goodwill;
* other transactions or matters other than enterprise merger in which neither profit nor taxable
income (or deductible loss) will be affected when transactions occur and the initial recognition of assets
and liabilities does not result in taxable temporary differences and deductible temporary differences of
equal amount
Deferred income tax liabilities are recognized for all taxable temporary differences arising from the
investments in subsidiaries joint ventures and associates except to the extent that both of the following
conditions are satisfied: the Company is able to control the timing of the reversal of the temporary
differences; and it is likely that the temporary difference will not reverse in the foreseeable future.Deferred income tax assets are recognized for all deductible temporary differences associated with
investments in subsidiaries joint ventures and associates if all of the following conditions are satisfied:
It is likely that the deductible temporary difference will reverse in the foreseeable future and it is likely
that taxable profit in the future will be available against which the deductible temporary difference can
be offset.At the balance sheet date deferred income tax assets and liabilities are measured at tax rates
expected to be applied to the period when the assets are recovered or the liabilities are settled according
to the tax law.At the balance sheet date the Company reviews the carrying value of deferred income tax assets.The carrying value of the deferred income tax assets are reduced if it is unlikely to obtain sufficient
taxable income to offset the benefit of the deferred income tax assets in the future. When it is likely that
sufficient taxable income will be available the amount of write-down is reversed.
38. Lease
√ Applicable □ Not applicable
A lease is a contract whereby the lessor conveys to the lessee the right to use an asset in exchange
for consideration. On the commencement date of the contract the Company assesses whether the
contract is or contains a lease. A contract is or contains a lease if one party to the contract gives the
right to control the use of an identified asset or identified assets for a period of time in exchange for
consideration.If the contract contains multiple separate leases simultaneously the Company will split the contract
and conduct separate accounting treatment for each separate lease. If the contract contains lease
components and non-lease components simultaneously the lessee and the lessor will split the lease
components and the non-lease components.Judgmental basis and accounting treatment of short-term leases and leases of low-value assets for
which a simplified treatment is adopted as the lessee
√ Applicable □ Not applicable
The Company as the lessee
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(1) Right-of-use assets
At the commencement date of the lease term the Company recognizes right-of-use assets for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost.The cost comprises:
* the amount of the initial measurement of the lease liability;
* any lease payments made at or before the commencement date of the lease term less any lease
incentives received;
* any initial direct costs incurred by the Company; and
* an estimate of costs to be incurred by the Company in dismantling and removing the leased asset
restoring the site on which it is located or restoring the leased asset to the condition required by the
terms and conditions of the lease unless those costs are incurred to produce inventories.The Company subsequently adopts the straight-line method to depreciate the right-of-use assets. If
it can be reasonably determined that the ownership of the leased asset can be acquired upon the expiry of
the lease term depreciation will be prepared during the remaining useful life of the leased asset;
otherwise depreciation will be prepared during the lease term or the remaining useful life of the leased
asset whichever is shorter.The Company determines whether the right-of-use asset has been impaired in accordance with the
principles described in Note “V (27) Impairment of long-term assets” and performs accounting
treatment for the identified impairment losses.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes lease liabilities for leases
other than short-term leases and low-value asset leases. Lease liabilities are initially measured at the
present value of the lease payments that are not paid. Lease payments comprise:
* fixed payments (including substantial fixed payments) less any lease incentives received;
* variable lease payments that depend on an index or a rate;
* amounts expected to be payable by the lessee under residual value guarantees provided by the
Company;
* the exercise price of a purchase option if the Company is reasonably certain to exercise that option;
and
* Payments for exercising an option to terminate the lease if the lease term reflects the lessee
exercising an option to terminate the lease.The Company uses the interest rate implicit in lease as the discount rate but if the interest rate
implicit in lease cannot be reasonably determined the Company’s incremental borrowing rate is used as
the discount rate.The Company calculates the interest expense of the lease liability in each period of the lease term
according to the fixed periodic interest rate and includes it in the current profit and loss or the related
asset costs.Variable lease payments excluded in the measurement of lease liabilities are included in the current
profit and loss or the related asset costs when they are actually incurred.After the commencement date of the lease term the Company re-measures the lease liabilities and
adjusts the corresponding right-of-use assets under the following circumstances. If the carrying amount
of the right-of-use assets is reduced to zero but the lease liabilities still need to be further reduced the
difference is included in the current profit and loss:
* when there is a change in the assessment result of an option to purchase renew or terminate the
lease or the actual exercise of the aforementioned options is inconsistent with the original assessment
result the Company remeasures the lease liabilities at the present value calculated according to the
changed lease payments and the revised discount rate; and
* When there is a change in the substantial fixed payments a change in the amounts expected to be
payable under a residual value guarantee or a change in an index or a rate used to determine the lease
payments the Company remeasures the lease liabilities at the present value calculated according to the
changed lease payments and the unchanged discount rate. However the present value is calculated
according to the revised discount rate if the change in lease payments is caused by a change in floating
interest rates.
(3) Short-term leases and low-value asset leases
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The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases
and low-value asset leases and includes relevant lease payments in the current profit and loss or related
asset costs over the lease term on straight-line basis. A short-term lease is a lease that at the
commencement date has a lease term of 12 months or less and does not contain a purchase option. A
low-value asset lease is a lease with a lower value when a single leased asset is a brand-new asset. If the
Company subleases or expects to sublease a leased asset the original lease is not a low-value asset lease.
(4) Lease modifications
The Company accounts for a lease modification as a separate lease if the following conditions are
satisfied simultaneously:
* the lease modification increases the lease scope by adding the right to use one or more lease assets;
and
* the consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.When a lease modification is not treated as a separate lease at the effective date of the lease
modification the Company re-allocates the consideration of the contract after the change re-determines
the lease term and remeasures the lease liability at the present value calculated according to the changed
lease payments and the revised discount rate.When a lease modification decreases the lease scope or shortens the lease term the Company
reduces the carrying value of the right-of-use asset and includes the relevant gain or loss resulting from
partial of full termination of the lease in the current profit and loss. When other lease modifications
result in re-measurement of the lease liability the Company adjusts the carrying value of the right-of-use
asset accordingly.
(5) Sale and leaseback
The Company assesses and determines whether the transfer of the asset in the sale and leaseback
transactions is a sale according to Note “V (34) Income”.When the transfer of the asset in the sale and leaseback transactions is a sale the Company as the
lessor measures the right-of-use asset arising from the sale and leaseback at the proportion of the
previous carrying amount of the asset that relates to the right of use retained through leaseback and
recognizes the relevant gain or loss at the amount that relates to the rights transferred to the lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and leasemodifications after the commencement date of the lease term please refer to “1. The Company as thelessee” under Note “V (38) Lease”. When subsequently measuring the lease liabilities arising from a sale
and leaseback the Company determines the lease payments or the modified lease payments in a manner
that does not result in the recognition of gains or losses related to the right-of-use acquired through the
leaseback.When the transfer of the asset in the sale and leaseback transactions is not a sale the Company as
the lessor continues to recognize the transferred assets and also recognizes a financial liability equal tothe transfer income. Details of accounting treatment of financial liabilities are set out in Note “V (11)Financial Instruments”.Criteria for classification and accounting treatment of leases as the lessor
√ Applicable □ Not applicable
At the commencement date of the lease term the Company classifies lease into finance lease and
operating lease. Finance lease refers to a lease that has transferred in substance all the risks and rewards
related to the ownership of an asset regardless of whether the ownership is ultimately transferred.Operating lease refers to a lease other than a finance lease. When the Company acts as a sublease lessor
it classifies the sublease based on the right-of-use asset arising from the original lease.
(1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income over the lease term on
straight-line basis. The Company capitalizes the initial direct expenses incurred in relation to operating
leases and amortizes and includes them in the current profit and loss on the same basis as the rental
income is recognized during the lease term. Variable lease payments excluded in lease receipts are
included in the current profit and loss when they are actually incurred. In case of any operating lease
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modification the Company will account for it as a new lease from the effective date of the modification
and regard the lease advance or lease receivable related to the lease before the modification as the receipt
from the new lease.
(2) Accounting treatment of finance leases
At the commencement of the lease the Company recognizes a finance lease receivable for a finance
lease and derecognizes finance lease assets. At the initial measurement of the finance lease receivable
the Company regards the net investment in the lease as the entry value of the finance lease receivable.Net investment in the lease is the sum of the following items discounted at the interest rate implicit in
lease: any unguaranteed residual value; and any lease receipt which is received at the commencement of
the lease.The Company calculates and recognizes the interest income over the lease term at the fixed
periodic interest rate. Derecognition and impairment of finance lease receivables are subject to the
accounting treatment in accordance with Note “V (11) Financial Instruments”.Variable lease payments excluded in net investment in the lease are included in measurement the
current profit and loss when they are actually incurred.The Company accounts for a finance lease modification as a separate lease if the following
conditions are satisfied simultaneously:
* the modification increases the lease scope by adding the right to use one or more lease assets; and
* the consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.When a finance lease modification is not treated as a separate lease the Company accounts for the
modified lease as follows:
* if the lease would have been classified as an operating lease had the modification been in effect at
the commencement date the Company accounts for the lease modification as a new lease from the
effective date of the modification and measures the carrying value of the lease asset as the net
investment in the lease immediately before the effective date of the lease modification.* if the lease would have been classified as a finance lease had the modification been in effect at the
commencement date the Company accounts for the lease modification according to the policies for
modification or renegotiation of contracts in Note “V (11) Financial Instruments”.
(3) Sale and leaseback transactions
The Company assesses and determines whether the transfer of the asset in the sale and leaseback
transactions is a sale according to Note “V (34) Income”.When the transfer of the asset in the sale and leaseback transactions is a sale the Company as the
lessor accounts for the purchase of the asset and accounts for the lease of the asset in accordance with
the aforementioned policy in “2. The Company as the lessor”; When the transfer of the asset in the sale
and leaseback transactions is not a sale the Company as the lessor does not recognize the transferred
asset but recognizes a financial asset equal to the transfer income. Details of accounting treatment of
financial assets are set out in Note “V (11) Financial Instruments”.
39. Other significant accounting policies and accounting estimates
√ Applicable □ Not applicable
Hedge accounting
(1) Classification of hedging
* Fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or
liability or an unrecognized firm commitment (except for foreign exchange risk).* Cash flow hedge is a hedge of the exposure to changes in cash flows. Such changes in cash
flows mainly come from a specific type of risk related to a recognized asset or liability or an expected
transaction that is likely to occur or the foreign exchange risk included in an unrecognized firm
commitment.* Hedge of net investment in an overseas operation is a hedge of the foreign exchange exposure
arising from net investment in an overseas operation. Net investment in an overseas operation refers to
an enterprise’s equity proportion in the net assets in an overseas operation.
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(2) Designation of hedging relationship and confirmation of hedging effectiveness
At the commencement of the hedging relationship the Company shall specify the hedging
relationship formally and prepare a formal written document on the hedging relationship risk
management objectives and the strategies of hedging. This document shall at least specify the contents
and number of the hedging instruments the nature and number of the hedged items the nature of the
hedged risk the type of hedge and the evaluation of the Company on the effectiveness of the hedging
instruments. Hedging effectiveness refers to the extent that the changes in the fair value or cash flow of a
hedging instrument may offset the changes resulted from the hedging risks in the fair value or cash flow
of a hedged item.The Company shall continuously evaluate the hedging effectiveness to determine whether the
hedging meets the requirements on effectiveness for using hedging accounting within the accounting
period when the hedging relationship is specified. If the hedging fails to meet the requirements the use
of hedging relationship shall be terminated.The use of hedge accounting shall meet the following requirements for the hedging effectiveness:
* There is an economic relationship between the hedged item and the hedging instrument.* In the value change caused by the economic relationship between the hedged item and the
hedging instrument the influence of credit risk is not dominant.* An appropriate hedging ratio is adopted and this ratio will not form an imbalance in the relative
weight of the hedged item and the hedging instrument thereby generating accounting results that are
inconsistent with the hedge accounting objectives. If the hedging ratio is no longer appropriate but the
hedging risk management objectives have not changed the number of hedged items or hedging
instruments shall be adjusted so that the hedging ratio meets the requirements on effectiveness again.
(3) Accounting treatment method of hedge
* Fair value hedge
Changes in the fair value of hedging derivatives are included in the current profit and loss. Changes
in the fair value of a hedged item due to hedging risk are included in the current profit and loss while
adjusting the book value of the hedged item.For fair value hedges related to financial instruments measured at amortized cost adjustments to
the carrying value of the hedged item are amortized in the remaining period between the adjustment date
and the maturity date and are included in the current profit and loss. Amortization carried out in
accordance with the effective interest rate method can begin immediately after the adjustment of the
carrying value and shall not be later than the adjustment made due to the changes in the fair values
caused by the hedging risk after the hedged item is terminated.If the hedged item is derecognized the un-amortized fair value is recognized as current profit or
loss.If the hedged item is an unrecognized firm commitment the accumulated changes in the fair value
of the firm commitment caused due to the hedged risk is recognized as an asset or liability and the
related gains or losses are included in the current profit and loss. Changes in the fair value of hedging
instruments are also included in the current profit and loss.* Cash flow hedge
The portion of the gains or losses from hedging instruments which belongs to the effective hedge
shall be directly recognized as other comprehensive income and the portion which belongs to the
ineffective hedge shall be included in the current profit and loss.If the hedged transaction affects the current profit or loss for example when the hedged financial
income or financial expense is confirmed or the expected sale occurs the amount recognized in other
comprehensive income will be transferred to the current profit and loss. If the hedged item is the cost of
a non-financial asset or liability the amount originally recognized in other comprehensive income is
transferred out and included in the initial recognition amount of the non-financial asset or liability (or the
amount originally recognized in other comprehensive income is transferred out in the same period in
which the non-financial asset or liability affects the profit and loss and included in the current profit and
loss).If the expected transaction or firm commitment is not expected to occur the cumulative gains or
losses of hedging instruments previously included in other comprehensive income are transferred out
and included in the current profit or loss. If the hedging instrument expires is sold terminated or
exercised (but has not been replaced or extended) or the designation of the hedging relationship is
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revoked the amount previously included in other comprehensive income will not be transferred out until
the expected transaction or firm commitment affects the current profit and loss.* Hedge of net investment in an overseas operation
Hedge of net investment in an overseas operation including hedge of monetary items as part of net
investment is handled similarly to cash flow hedge. The portion of the gains or losses from hedging
instruments which is recognized as effective hedge shall be recorded in other comprehensive income
and the portion which is recognized as ineffective hedge shall be included in the current profit and loss.When disposing of overseas operations any accumulated gains or losses included in other
comprehensive income are transferred out and included in the current profit or loss.Repurchase of the Company’s shares
The Company manages the repurchased shares as treasury shares before cancellation or transfer
and transfers all the expenses for the repurchase to the costs of treasury shares. The consideration and
transaction costs paid for the repurchase reduce the owner’s equity and no gain or loss is recognized
when the Company’s shares are repurchased transferred or cancelled.
(1) Where the Company’s shares are acquired for reasons such as reduction of registered capital or
reward to employees they will be treated as treasury shares based on the amount actually paid for the
repurchase and also be registered for future reference. If the repurchased shares are cancelled the
difference between the total nominal value of the shares calculated based on the nominal value and
number of the cancelled shares and the amount actually paid for the repurchase will be offset against the
capital reserve and if the capital reserve is insufficient to offset the remaining difference will be offset
against the retained earnings. If the repurchased shares are awarded to employees of the Company as
equity-settled share-based payment when receiving the price from the exercise by the employees of the
option to purchase the Company’s shares the Company resells and delivers the cost of employees’
treasury shares and the accumulated amount of capital reserves (other capital reserves) during the
waiting period and adjusts the capital reserve (share premium) based on the difference between them.
(2) For the shares repurchased in accordance with the equity incentive plan the Company will
repurchase and cancel the restricted stocks that fail to meet the unlocking conditions. For the stocks
required to be repurchased due to failure to unlocking conditions for restricted stocks the Company
debits them to “Other payables - Repurchase obligations of restricted stocks” and other subjects and
credits them to “Bank deposits” and other subjects. At the same time the Company debits the amount of
share capital corresponding to the number of cancelled restricted stocks in the subject of “Share capital”
credits the carrying value of the treasury stocks corresponding to the number of cancelled restricted
stocks in the subject of “Treasury shares” and debits the difference of them to the subject of “CapitalReserve - Share premium”.Debt reorganisation
(1) The Company as the creditor
The Company terminates the recognition of claims when the contractual right to receive the cash
flow from claims terminates. In the event of debt reorganisation by means of extinguishing debts with
assets or converting debts into equity instruments the Company recognises the corresponding assets
when they meet the definition and the conditions for recognition.In the event of debt reorganisation by means of extinguishing debts with assets the Company
measures the transferred non-financial assets at cost upon initial recognition. The cost of inventory
includes the fair value of waived claims and other costs directly attributable to the asset such as taxes
transportation and handling fees insurance premiums and other costs incurred in bringing the asset to its
current position and condition. The cost of an investment in an associated enterprise or joint venture
includes other costs such as the fair value of waived claims and taxes directly attributable to the asset.The cost of an investment property includes the fair value of waived claims and other costs such as
taxes directly attributable to the asset. The cost of a fixed asset includes the fair value of waived claims
and other costs directly attributable to the asset such as taxes transportation handling and installation
fees service fees to professionals and other costs incurred in bringing the asset to the predetermined
state for use. The cost of a biological asset includes the fair value of waived claims and other costs such
as taxes directly attributable to the asset. The cost of an intangible asset includes the fair value of
waived claims and other costs such as taxes incurred in bringing the asset to its intended use. Where
debt reorganisation by converting debts into equity instruments causes creditors to convert their claims
into equity investments in an associated enterprise or joint venture the Company measures the initial
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investment cost at the fair value of waived claims and other costs such as taxes directly attributable to
the asset. The difference between the fair value of waived claims and the carrying amount is included in
the profit or loss for the current period.For debt reorganisation by means of modifying other terms the Company recognises and measures
reorganised claims according to Note “V (11) Financial Instruments”.For debt reorganisation by means of extinguishing debts with multiple assets or by multiple means
the Company first recognises and measures transferred financial assets and reorganised claims according
to Note “V (11) Financial Instruments” and then distributes the net fair value of waived claims after
deducting the recognised amounts of transferred financial assets and reorganised claims according to the
proportion of the fair value of the assets other than the transferred financial assets and on that basis
separately determines the cost of each asset according to the aforementioned method. The difference
between the fair value of waived claims and the carrying amount is included in the profit or loss for the
current period.
(2) The Company as the debtor
The Company terminates the recognition of debts when its current obligation for debts is
discharged.In the event of debt reorganisation by means of extinguishing debts with assets the Company
terminates recognition when the corresponding assets and the debts to be extinguished meet the
conditions for termination of recognition and the difference between the carrying amount of the debts to
be extinguished and that of transferred assets is included in the profit or loss for the current period.In the event of debt reorganisation by means of converting debts into equity instruments the
Company terminates recognition when the debts to be extinguished meet the conditions for termination
of recognition. Upon initial recognition of equity instruments the Company measures at the fair value of
the equity instruments. If the fair value of equity instruments cannot be reliably measured the Company
measures at the fair value of the debts to be extinguished. The difference between the carrying amount of
the debts to be extinguished and the recognised amounts of equity instruments shall be included in the
profit or loss for the current period.For debt reorganisation by means of modifying other terms the Company recognises and measures
reorganised debts according to Note “V (11) Financial Instruments”.For debt reorganisation by means of extinguishing debts with multiple assets or by multiple means
the Company recognises and measures equity instruments and reorganised debts according to the
aforementioned methods and includes the difference between the carrying amount of the debts to be
extinguished and the sum of the carrying amount of transferred assets and the recognised amounts of
equity instruments and debts to be extinguished in the profit or loss for the current period.Segment reporting
The Company determines the operating segment based on the internal organizational structure
management requirements and internal reporting system and determines the reporting segment based
on the operating segment and discloses segment information.Operating segment refers to the component of the Company that meets the following conditions
simultaneously: (1) the component can generate income and incur expenses in daily activities; (2) the
management of the Company can regularly evaluate the operating results of the component to decide to
allocate resources to it and evaluate its performance; and (3) the Company can obtain relevant
accounting information such as the financial status operating results and cash flow of the component. If
two or more operating segments have similar economic characteristics and meet certain conditions they
can be combined into one operating segment.
40. Changes in significant accounting policies and accounting estimates
1. Changes in significant accounting policies
Implementation of Q&A on Accounting Treatment for Standard Warehouse Receipt Transactions
under the Financial Instruments Standard
On July 8 2025 the Ministry of Finance issued the Implementation Q&A on Accounting
Treatment for Standard Warehouse Receipt (SWR) Transactions clearly stipulating that under the
Financial Instruments Recognition and Measurement Standard the act of an enterprise frequently
entering into SWR buy-and-sell contracts on a futures trading venue to earn price differences without
128 / 233Annual Report 2025
taking delivery of the underlying commodities typically indicates a practice of selling the contracts
shortly after acquisition to profit from short-term price fluctuations. In such cases the contracts shall be
treated as financial instruments and accounted for in accordance with the Financial Instruments
Recognition and Measurement Standard. For SWRs acquired under such contracts and subsequently sold
within a short period revenue from sales shall not be recognized. Instead the difference between the
consideration received and the carrying amount of the SWR sold shall be recorded as investment income
and SWRs held at the end of the reporting period that have not yet been sold shall be classified as other
current assets. Enterprises may elect at initial recognition to measure SWRs acquired under these
contracts at fair value with changes recognized in profit or loss provided this can eliminate or
significantly reduce accounting mismatches. This election must be applied consistently to all SWRs
meeting the criteria. Once SWRs are designated at fair value through profit or loss at initial recognition
the election cannot be revoked in subsequent periods.According to the Notice on Strict Implementation of the Enterprise Accounting Standards and
Proper Preparation of 2025 Annual Reports (Caikuai [2025] No. 33) enterprises adjusting accounting
treatments due to the above SWR provisions shall restate comparable periods in their financial
statements. The implementation of these provisions did not have a material impact on the Company’s
financial position or operating results.
(2) Changes in significant accounting estimates
There were no changes in the Company’s significant accounting estimates during the Reporting
Period.
41. Adjustments to the opening items and amounts of the financial statements for the year of the
first implementation due to the first implementation of new accounting standards standard
interpretations etc. from 2025
□ Applicable √ Not applicable
42. Others
□ Applicable √ Not applicable
VI. Taxes
1. Major tax types and tax rates
Particulars on major tax types and tax rates
√ Applicable □ Not applicable
Tax type Taxing basis Tax rate
The output tax is calculated on the basis of the income from sales
of products and taxable income from rendering of services
Value added tax 19% 20% 13% 9%
calculated according to the provisions of the tax law. The
(“VAT”) 7% 6% 5% 1%
difference between the output tax and the input tax which is
allowed to be deductible in the current period is the payable VAT
Consumption tax
Business tax
Urban maintenance and Calculated and paid according to the actually-paid VAT and
7%5%1%
construction tax consumption tax
15%20%25%
Enterprise income tax Calculated and paid according to the taxable income 22% 31% 17%
16.5%24%21%
Particulars on disclosure of taxpayers with different enterprise income tax rates
√ Applicable □ Not applicable
Income tax
Name of taxpayer
rate (%)
Shanghai M&G Stationery Inc. 15
Shanghai M&G Zhenmei Stationery Co. Ltd.（上海晨光珍美文具有限公司） 20
129 / 233Annual Report 2025
Colipu Technologies Group Co. Ltd. (科力普科技集团股份有限公司) 25
Lianyungang Colipu Office Supplies Co. Ltd.（连云港市科力普办公用品有限公司） 20
Shenyang Colipu Office Supplies Trading Co. Ltd.（沈阳科力普办公用品贸易有限公司） 20
Shanghai M&G Stationery & Gift Co. Ltd.（上海晨光文具礼品有限公司） 25
Shanghai M&G Stationery Sales Co. Ltd.（上海晨光文具销售有限公司） 25
Guangzhou M&G Stationery&Gifts Sales Co. Ltd.（广州晨光文具礼品销售有限公司） 25
Yiwu Chenxing Stationery Co. Ltd.（义乌市晨兴文具用品有限公司） 25
Harbin M&G Sanmei Stationery Co. Ltd.（哈尔滨晨光三美文具有限公司） 25
Zhengzhou M&G Stationery&Gifts Co. Ltd.（郑州晨光文具礼品有限责任公司） 25
M&G Life Enterprise Management Co. Ltd.（晨光生活馆企业管理有限公司） 25
Shanghai M&G Jiamei Stationery Co. Ltd.（上海晨光佳美文具有限公司） 20
Zhejiang New M&G Life Enterprise Management Co. Ltd.（浙江新晨光生活馆企业管理有限公司） 20
Jiumu M&G Store Enterprise Management Co. Ltd.（九木杂物社企业管理有限公司） 25
Shanghai M&G Information Technology Co. Ltd.（上海晨光信息科技有限公司） 25
Shenzhen Erya Creative and Cultural Development Co. Ltd.（深圳尔雅文化创意发展有限公司） 20
Shanghai M&G Office Stationery Co. Ltd. 25
Hangzhou Sanmei M&G Stationery Co. Ltd.（杭州三美晨光文具有限公司） 20
Shanghai Qizhihaowan Culture and Creativity Co. Ltd.（上海奇只好玩文化创意有限公司） 25
Shanghai Chenxun Enterprise Management Co. Ltd.（上海晨讯企业管理有限公司） 25
Shanghai Colipu Information Technology Co. Ltd.（上海科力普信息科技有限公司） 25
Axus Stationery (Shanghai) Company Ltd. 15
Jiangsu Marco Pen Co. Ltd.（江苏马可笔业有限公司） 25
Changchun Macro Stationery Co. Ltd.（长春马可文教用品有限公司） 25
Yili Senlai Wood Co. Ltd.（伊犁森徕木业有限公司） 25
Axus Stationery (Hong Kong) Company Ltd. 16.5
International stationery company 20
Shanghai Meixin Stationery Co. Ltd. (上海美新文具有限公司) 25
SHANGHAI M&G STATIONERY (SINGAPORE) PTE.LTD. 17
M&G Jiumu Enterprise Management (Beijing) Co. Ltd. (晨光九木企业管理（北京）有限公司) 20
Back to School Holding AS 22
Beckmann AS 22
Beckmann Norway GmbH (Germany) 31
Beckmann Norway Inc 21
Beckmann Norway GmbH (Austria) 24
Zhejiang Benwei Technology Co. Ltd. (浙江本味科技有限公司) 20
Guangdong South China M&G Stationery Co. Ltd. (广东华南晨光文教用品有限公司) 25
Hubei M&G Central China Information Technology Co. Ltd. (湖北晨光华中信息科技有限公司) 25
Shanghai Colipu Technology Development Co. Ltd. (上海科力普科技发展有限公司) 20
Shanghai Yichengxiang E-commerce Co. Ltd. (上海益诚祥电子商务有限公司) 20
Shanghai M&G Online Selection Stationery Co. Ltd. (上海晨光在线甄选文具有限公司) 25
Shanghai Mymybear Enterprise Management Co. Ltd. (上海沫沫班长企业管理有限公司) 20
Shanghai M&G Stationery (Thailand) Co. Ltd 20
Lanzhou M&G Cultural Supplies Co. Ltd. (兰州晨光文化用品有限公司) 20
2. Tax preference
√ Applicable □ Not applicable
On December 19 2025 the Company obtained the Innovation Company Certificate (certificate
number GR202531000914 valid for 3 years) issued jointly by Shanghai Municipal Science and
Technology Commission Shanghai Finance Bureau and Shanghai Municipal Tax Service State
Taxation Administration.
130 / 233Annual Report 2025
On December 4 2024 the subsidiary Axus Stationery obtained the Innovation Company Certificate
(certificate number GR202431002131 valid for 3 years) issued jointly by Shanghai Municipal Science
and Technology Commission Shanghai Finance Bureau and Shanghai Municipal Tax Service State
Taxation Administration.The Company and the subsidiary Axus Stationery paid the enterprise income tax at the rate of 15%
this year.Pursuant to the Announcement on Further Supporting Small and Micro Enterprises and Individual
Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12
of 2023 of the Ministry of Finance and the State Taxation Administration). Tax on natural resources
(excluding tax on water resources) urban maintenance and construction tax real estate tax urban land
use tax stamp tax (excluding stamp tax on securities transactions) agriculture land tax educational
surcharge and local education surcharge on small-scale VAT taxpayers small-sized low-profit
enterprises and individual industrial and commercial households are deducted by half from January 1
2023 to December 31 2027. The enterprise income tax at 20% shall apply based on 25% of the taxable
income for small-sized low-profit enterprises with the effective period extended till December 31 2027.Subsidiaries M&G Jiumu Enterprise Management (Beijing) Co. Ltd. (晨光九木企业管理（北京）有限公司) Zhejiang New M&G Life Enterprise Management Co. Ltd.（浙江新晨光生活馆企业管理有限公司） Lianyungang Colipu Office Supplies Co. Ltd（. 连云港市科力普办公用品有限公司） Shenyang
Colipu Office Supplies Trading Co. Ltd.（沈阳科力普办公用品贸易有限公司） Shanghai Colipu
Technology Development Co. Ltd. (上海科力普科技发展有限公司) Zhejiang Benwei TechnologyCo. Ltd. (浙江本味科技有限公司) Shanghai M&G Jiamei Stationery Co. Ltd（. 上海晨光佳美文具有限公司） Shanghai M&G Zhenmei Stationery Co. Ltd（. 上海晨光珍美文具有限公司） Shenzhen Erya
Creative and Cultural Development Co. Ltd.（深圳尔雅文化创意发展有限公司） Hangzhou Sanmei
M&G Stationery Co. Ltd.（杭州三美晨光文具有限公司） Shanghai Yichengxiang E-commerce Co.Ltd. (上海益诚祥电子商务有限公司) Lanzhou M&G Cultural Supplies Co. Ltd. (兰州晨光文化用品
有限公司) and Shanghai Mymybear Enterprise Management Co. Ltd. (上海沫沫班长企业管理有限
公司) meet the tax declaration requirements for micro and small enterprises and declare the enterprise
income tax at the tax rate of 20%.In accordance with the Announcement on the Additional VAT Credit Policy for Advanced
Manufacturing Enterprises (Announcement [2023] No. 43) issued by the Ministry of Finance and the
State Taxation Administration advanced manufacturing enterprises are entitled to an additional 5%
input VAT credit from January 1 2023 to December 31 2027 in order to offset their VAT payable. The
Company meets the relevant provisions on the tax incentive and has applied the additional 5% input
VAT credit to offset its VAT payable accordingly.In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation
on Value-Added Tax Policies for Software Products (Cai Shui [2011] No. 100) the subsidiary Colipu
Information Technology was granted the tax incentive regarding the refund upon payment of VAT by
Shanghai Xuhui District Tax Service State Taxation Administration on software products on June 9
2020 with a valid period from April 1 2020 to March 31 2070.
3. Others
□ Applicable √ Not applicable
VII. Notes to the Items of Consolidated Financial Statements
1. Cash and equivalents
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 809289.01 1316928.26
Cash at bank 3938309460.71 4921949239.34
Other cash and equivalents 42503790.78 38951134.52
Deposits in finance company
Total 3981622540.50 4962217302.12
131 / 233Annual Report 2025
Including: Total cash
75573360.57119227417.15
deposited outside China
Other descriptions:
No
2. Held-for-trading financial assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Reasons and basis
Item Closing balance Opening balance
for designation
Financial assets at fair value through
4108620317.142569112993.22/
profit or loss
Including:
Debt instrument investment /
Equity instrument investment
Derivative financial assets /
Others 4108620317.14 2569112993.22
Financial assets designated at fair
value through profit or loss
Including:
Debt instrument investment
Others
Total 4108620317.14 2569112993.22 /
Other descriptions:
√ Applicable □ Not applicable
Other bank wealth management products purchased for the Company.
3. Derivative financial assets
□ Applicable √ Not applicable
4. Bills receivable
(1). Bills receivable presented by category
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bank acceptance bills
Commercial acceptance bills 49831812.11 9033273.87
Finance company acceptance bills 14935312.61 9747991.69
Less: Bad debt provisions of bills receivable -4767787.38 -1355738.91
Total 59999337.34 17425526.65
(2). Bills receivable pledged by the Company at the end of the period
□ Applicable √ Not applicable
(3). Bills receivable endorsed or discounted by the Company at the end of the period but not due
yet at the balance sheet date
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Amount derecognized at the Amount not derecognized at the
132 / 233Annual Report 2025
end of the Period end of the period
Bank acceptance bills
Commercial acceptance bills 29545500.78
Finance company acceptance bills 9687733.36
Total 39233234.14
(4). Disclosure by accruing method for bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying balance Bad debt provisions Carrying balance Bad debt provisions
Accr Accr
Category Percent uing Carrying Percent uing Carrying
Amount age Amount perce value Amount age Amount perce value
(%) ntage (%) ntage
(%)(%)
Bad debt
provisions
accrued
separately
Including:
Bad debt
provisions
accrued 64767124.72 100.00 4767787.38 7.36 59999337.34 18781265.56 100.00 1355738.91 7.22 17425526.65
according to the
combination
Including:
Finance
company 14935312.61 23.06 728688.24 4.88 14206624.37 9747991.69 51.90 604896.12 6.21 9143095.57
acceptance bills
Commercial
49831812.1176.944039099.148.1145792712.979033273.8748.10750842.798.318282431.08
acceptance bills
Total 64767124.72 / 4767787.38 / 59999337.34 18781265.56 / 1355738.91 / 17425526.65
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
√ Applicable □ Not applicable
Combination item: Credit risk characteristic portfolio
Unit: Yuan Currency: RMB
Closing balance
Item Accruing percentage
Carrying balance Bad debt provisions
(%)
Finance company
14935312.61728688.244.88
acceptance bills
Commercial
49831812.114039099.148.11
acceptance draft
Total 64767124.72 4767787.38
Notes to bad debt provisions accrued according to the combination
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
133 / 233Annual Report 2025
Notes to the significant changes in the book balance of bills receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Resold
Opening Recover Other Closing
Category or
balance Accrued ed or change balance
written-
reversed s
off
Finance company
604896.12123792.12728688.24
acceptance bills
Commercial
750842.793288256.354039099.14
acceptance draft
Total 1355738.91 3412048.47 4767787.38
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on notes receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant notes receivable:
□ Applicable √ Not applicable
Notes to the write-off of notes receivable:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
5. Accounts receivable
(1). Disclosure by account age
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end of Carrying balance at the
Account age
the period beginning of the period
Within one year (including one year) 4546808968.06 3840754562.66
Including: Sub-item within one year
Within one year 4546808968.06 3840754562.66
One to two years 106194739.34 86030697.31
Two to three years 13674496.00 9635470.86
Above three years 7059749.62 7004778.86
Three to four years
Four to five years
Above five years
Total 4673737953.02 3943425509.69
134 / 233Annual Report 2025
(2). Disclosure by accruing method for bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying balance Bad debt provisions Carrying balance Bad debt provisions
Category Accruing Carrying Accruing Carrying
Percentage
Amount Amount percentage value
Percentage
Amount Amount percentage value
(%)(%)
(%)(%)
Bad debt
provisions
20187259.170.4320187259.17100.009459313.990.249459313.99100.00
accrued
separately
Including:
Bad debt
provisions
accrued
4653550693.8599.5776015255.391.634577535438.463933966195.7099.7673330777.941.863860635417.76
according to
the
combination
Including:
Account
4653550693.8599.5776015255.391.634577535438.463933966195.7099.7673330777.941.863860635417.76
age analysis
Total 4673737953.02 / 96202514.56 / 4577535438.46 3943425509.69 / 82790091.93 / 3860635417.76
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
√ Applicable □ Not applicable
Combination item: Account age analysis
Unit: Yuan Currency: RMB
Closing balance
Item Accruing percentage
Carrying balance Bad debt provisions
(%)
Account age analysis 4653550693.85 76015255.39 1.63
Total 4653550693.85 76015255.39
Description on bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of accounts receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(3). Particulars on bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Opening Closing
Category Recovered or Resold or Other
balance Accrued balance
reversed written-off changes
Bad debt
9459313.9914293974.252298338.541267690.5320187259.17
provisions
135 / 233Annual Report 2025
accrued
separately
Account
73330777.942747387.87-62910.4276015255.39
age analysis
Total 82790091.93 17041362.12 2298338.54 1267690.53 -62910.42 96202514.56
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
In the bad debt provision for the current year there are an impact of RMB-75369.45 due to the
exchange rate difference in the conversion of foreign currency financial statements and a provision of
RMB12459.03 due to the acquisition of Shanghai Mymybear Enterprise Management Co. Ltd. (上海沫
沫班长企业管理有限公司) (a new business combination not under common control). The bad debt
provision recognized for the current year includes an amount of RMB2298338.54 recovered or
reversed from the provision for bad debts previously recognized with the actual provision for bad debts
being RMB14743023.58.
(4). Particulars on accounts receivable actually written-off in the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Written-off amount
Accounts receivable actually written-off 1267690.53
Writing-off of significant accounts receivable
□ Applicable √ Not applicable
Description on writing-off of accounts receivable:
□ Applicable √ Not applicable
(5). Particulars on top five accounts receivable and contract assets in terms of the balance at the
end of the period based on debtors
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Percentage (%)
in the total
Closing Closing balance of balance at the Balance of bad
Closing balance
Company balance of accounts end of the debt provisions
of accounts
name contract receivable and period of at the end of
receivable
assets contract assets accounts the period
receivable and
contract assets
First 1031327475.14 1031327475.14 22.07 6679276.00
Second 414633311.62 414633311.62 8.87 4235326.70
Third 403906075.59 403906075.59 8.64 10671854.59
Fourth 125821456.21 125821456.21 2.69 1732982.72
Fifth 109590825.84 109590825.84 2.34 3043242.86
Total 2085279144.40 2085279144.40 44.61 26362682.87
Other descriptions:
No
Other descriptions:
□ Applicable √ Not applicable
136 / 233Annual Report 2025
6. Contract assets
(1). Particulars on contract assets
□ Applicable √ Not applicable
(2). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of contract assets arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(4). Provision set aside for bad debts on contract assets in the current period
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(5). Contract assets written off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant contract assets
□ Applicable √ Not applicable
Notes to write-off of contract assets:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
137 / 233Annual Report 2025
7. Accounts receivable financing
(1). Classified presentation of accounts receivables financing
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Bills receivable 31211919.98 28475371.64
Factoring of accounts receivable
Accounts receivable
Total 31211919.98 28475371.64
(2). Accounts receivables financing pledged by the Company at the end of the period
□ Applicable √ Not applicable
(3). Accounts receivables financing endorsed or discounted by the Company at the end of the
period but not due yet at the balance sheet date
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount derecognized at the end Amount not derecognized at the
Item
of the period end of the period
Bank acceptance bills 26467790.18
Total 26467790.18
(4). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of accounts receivables financing arising from
changes in the provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
138 / 233Annual Report 2025
(6). Particulars on accounts receivable financing actually written-off in the current period
□ Applicable √ Not applicable
Including: Significant write-off of accounts receivables financing
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
(7). Changes in receivables financing during the current period and changes in fair value:
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Accumulated losses
Increased in Derecognition
Opening Other Closing recognized in other
Item the current of the current
balance changes balance comprehensive
period period
income
Bills receivable 28475371.64 138453557.83 135717009.49 31211919.98
(8). Other descriptions
□ Applicable √ Not applicable
8. Prepayment
(1). Prepayment presented by account age
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Account age
Amount Percentage (%) Amount Percentage (%)
Within one year 71269409.61 97.23 88743121.12 97.80
One to two years 1915106.03 2.61 1471482.66 1.62
Two to three years 109931.11 0.15 500279.73 0.55
Above three years 10858.15 0.01 28788.91 0.03
Total 73305304.90 100.00 90743672.42 100.00
Description on the reasons for failure to settle the prepayment with an account age over one year and a
significant amount:
No
(2). Particulars on top 5 prepayments in terms of the balance at the end of the period according to
the concentration of parties to which the prepayments are made
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Percentage (%) in the total
Company name Closing balance balance at the end of the period
of prepayment
First 7173883.76 9.79
Second 6348082.66 8.66
Third 4270379.41 5.83
Fourth 2925196.46 3.99
Fifth 2202481.42 3.00
Total 22920023.71 31.27
139 / 233Annual Report 2025
Other descriptions:
No
Other descriptions:
□ Applicable √ Not applicable
9. Other receivables
Presented by item
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 272193803.53 238243332.88
Total 272193803.53 238243332.88
Other descriptions:
□ Applicable √ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not applicable
(2). Important overdue interest
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of interest receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
140 / 233Annual Report 2025
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on interest receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant interest receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable √ Not applicable
(2). Important dividend receivable with the account age over one year
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of dividends receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
141 / 233Annual Report 2025
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on dividend receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant dividend receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end Carrying balance at the
Account age
of the period beginning of the period
Within one year (including one year) 206761277.66 213227356.27
Including: Sub-item within one year
Within one year 206761277.66 213227356.27
One to two years 56598575.03 39011841.61
Two to three years 32268144.36 8492896.52
Above three years 13661083.20 9862110.90
Three to four years
Four to five years
Above five years
Less: Bad debt provisions -37095276.72 -32350872.42
Total 272193803.53 238243332.88
(2). Particulars on classification by amount nature
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end of Carrying balance at the
Amount nature
the period beginning of the period
Personal loans and petty cash 7689044.44 9623635.38
Amount paid for materials 27780107.16 36906025.77
Consolidated balance of
related-parties current accounts - 51735123.27 49172765.14
provisional input tax
Non-housing deposit and margin 91600721.28 72362755.76
Housing deposit and margin 88439343.18 77354849.42
Others 42044740.92 25174173.83
Total 309289080.25 270594205.30
(3). Particulars on accruing of bad debt provisions
√ Applicable □ Not applicable
142 / 233Annual Report 2025
Unit: Yuan Currency: RMB
Phase 1 Phase 2 Phase 3
Expected credit Expected credit
Expected credit loss for the entire loss for the entire
Bad debt provisions Total
losses in the duration (no credit duration (credit
next 12 months impairment impairment
occurred) occurred)
Balance as at January 1 2025 32350872.42 32350872.42
Balance as of January 1 2025
in the current period
- Transferred into Phase 2
- Transferred into Phase 3
- Reversed into Phase 2
- Reversed into Phase 1
Accrued in the current period 4467813.84 250000.00 4717813.84
Reserved in the current period
Resold in the current period
Written-off in the current
250000.00250000.00
period
Other Changes 276590.46 276590.46
Balance as at December 31
37095276.7237095276.72
2025
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of other receivables arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Amount of bad debt provisions accrued for the current period and the basis for assessing whether the
credit risk of financial instruments has increased significantly:
□ Applicable √ Not applicable
(4). Particulars on bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Recove
Opening
Category red or Resold or Other Closing balance
balance Accrued
reverse written-off changes
d
Bad debt
provisions 250000.00 250000.00
accrued separately
Account age
28483129.754043698.18146481.3732673309.30
analysis
Deposit for
3867742.67424115.66130109.094421967.42
housing lease
Total 32350872.42 4717813.84 250000.00 276590.46 37095276.72
Significant bad debt provision amounts reversed or recovered in the current period:
□ Applicable √ Not applicable
Other descriptions:
143 / 233Annual Report 2025
The other changes in the bad debt provision for the current year consist of an impact of
RMB-1064.99 due to the exchange rate difference in the conversion of foreign currency financial
statements and a provision of RMB277655.45 due to the acquisition of Shanghai Mymybear Enterprise
Management Co. Ltd. (上海沫沫班长企业管理有限公司) (a new business combination not under
common control).
(5). Particulars on other receivables actually written-off in the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Written-off amount
Other receivables actually written-off 250000.00
Including: Write-off of significant other receivables:
□ Applicable √ Not applicable
Notes to the write-off of other receivables:
□ Applicable √ Not applicable
(6). Particulars on top 5 other receivables in terms of the balance at the end of the period based on
debtors
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Percentage
(%) in the
Bad debt
total balance
Closing Account provisions
Company name at the end of Account age
balance nature closing
the period of
balance
other
receivables
Consolidate
d balance of
Consolidated balance of
related-parti
related-parties current
51735123.27 16.73 es current Within one year
accounts - provisional
accounts -
input tax
provisional
input tax
China Post Group Co. Within one yearLtd. Jiangsu Branch（中国 Non-housin RMB4.00 million
7000000.00 2.26 g deposit 1100000.00
邮政集团有限公司江苏 One to two years
and margin省分公司） RMB3.00 million
Vinda Commercial and
Trade Co. Ltd. Shanghai Amount
（维达商贸有限公 6807287.01 2.20 paid for Within one year 340364.35 Branchmaterials司上海分公司）
Huizhou Guoxu HousingManagement Co. Ltd.（惠 6320073.00 2.04 deposit and One to two years 316003.65州市国旭管理有限公司） margin
Hangzhou Funing
Network Technology Co.（杭州富柠网络技术 5500000.00 1.78 Others Within one year 275000.00 Ltd.有限公司）
Total 77362483.28 25.01 / / 2031368.00
144 / 233Annual Report 2025
(7). Other receivables reported due to centralized management of funds
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
10. Inventories
(1). Classification of inventories
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for Provision for
the loss on the loss on
decline in decline in
value of value of
inventories/ inventories/
Item
Carrying balance provision for Carrying value Carrying balance provision for Carrying value
the the
impairment of impairment of
contract contract
performance performance
cost cost
Raw materials 201031819.01 3806221.73 197225597.28 177310855.52 1662853.82 175648001.70
Work-in-process 36731382.21 1353702.95 35377679.26 42946655.16 42946655.16
Finished
1459377244.8068858468.801390518776.001327590899.2065402473.761262188425.44
products
Revolving
9730365.14194425.279535939.879816312.871131750.598684562.28
materials
Expendable
2486345.612486345.613137530.493137530.49
biological assets
Contract
performance
cost
Consigned
processing 8911807.25 8911807.25 8509873.42 8509873.42
materials
Shipped goods 24981022.76 24981022.76 44751670.30 44751670.30
Total 1743249986.78 74212818.75 1669037168.03 1614063796.96 68197078.17 1545866718.79
(2). Data resources recognized as inventories
□ Applicable √ Not applicable
(3). Devaluation provisions of inventories and impairment provisions of contract performance cost
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase amount of the Decrease amount of the
current period current period
Item Opening balance Closing balance
Reversed or
Accrued Others Others
resold
Raw materials 1662853.82 2143367.91 3806221.73
Work-in-process 1353702.95 1353702.95
Finished products 65402473.76 3614559.77 288846.29 -130281.56 68858468.80
Revolving materials 1131750.59 -637325.32 300000.00 194425.27
Expendable
biological assets
145 / 233Annual Report 2025
Contract
performance cost
Total 68197078.17 6474305.31 588846.29 -130281.56 74212818.75
Additional notes: The other changes in the provision for inventory impairment for the current year
include a foreign exchange translation difference of RMB-130281.56 in the financial statements.Reasons for reversal or write-off of provision for inventories impairment in the current period
□ Applicable √ Not applicable
Inventories impairment provisions accrued according to the combination
□ Applicable √ Not applicable
Criteria for inventories impairment provisions accrued according to the combination
□ Applicable √ Not applicable
(4). Capitalization amount of the borrowing expenses included in the balance of inventories at the
end of the period and the criteria and basis for its calculation
□ Applicable √ Not applicable
(5). Description on amortization amount of the current period of contract performance cost
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
11. Held for sale assets
□ Applicable √ Not applicable
12. Non-current assets due within one year
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year 215660.65 862796.30
Total 215660.65 862796.30
Debt investment due within one year
□ Applicable √ Not applicable
Other debt investments due within one year
□ Applicable √ Not applicable
Additional notes to non-current assets due within one year
No
13. Other current assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Contract acquisition cost
146 / 233Annual Report 2025
Receivable return cost 94285462.11 62531670.08
VAT input tax to be verified 559910.12 513487.14
VAT input tax to be deducted 56078584.05 31156492.94
Pre-paid enterprise income tax 52720.28 7304935.55
Pre-paid value added tax 212307.53
Others 1316019.73 1262562.90
Fixed term deposits due within one year 141000000.00
Total 152292696.29 243981456.14
Other descriptions:
No
14. Debt investment
(1). Particulars on debt investment
□ Applicable √ Not applicable
Changes in provision for impairment on debt investments in the current period
□ Applicable √ Not applicable
(2). Important debt investment at the end of the period
□ Applicable √ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable √ Not applicable
Basis of classification of stages and percentage of impairment provision
No
Notes to the significant changes in the book balance of debt investments arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Bases for determining the amount of provision set aside for impairment and assessing whether the credit
risk of financial instruments has increased substantially in the current period
□ Applicable √ Not applicable
(4). Particulars on debt investment actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant debt investments
□ Applicable √ Not applicable
Notes to write-off of debt investments:
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
15. Other debt investment
(1). Other debt investment
□ Applicable √ Not applicable
147 / 233Annual Report 2025
Changes in provision for impairment on other debt investments in the current period
□ Applicable √ Not applicable
(2). Important other debt investments at the end of the period
□ Applicable √ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable √ Not applicable
Basis of classification of stages and percentage of impairment provision
No
Notes to the significant changes in the book balance of other debt investments arising from changes in
the provision for losses in the current period:
□ Applicable √ Not applicable
Bases for determining the amount of provision set aside for impairment and assessing whether the credit
risk of financial instruments has increased substantially in the current period
□ Applicable √ Not applicable
(4). Particulars on other debt investments actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of other significant debt investments
□ Applicable √ Not applicable
Notes to write-off of other debt investments:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
16. Long-term receivables
(1). Long-term receivables
□ Applicable √ Not applicable
(2). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(3). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
148 / 233Annual Report 2025
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of long-term receivables arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Bases for determining the amount of provision set aside for bad debts and assessing whether the credit
risk of financial instruments has increased substantially in the current period
□ Applicable √ Not applicable
(4). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(5). Particulars on long-term receivables actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant long-term receivables
□ Applicable √ Not applicable
Notes to the write-off of long-term receivables:
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
17. Long-term equity investments
(1). Long-term equity investments
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Investment Balance of
Declaration
Opening gains and Closing impairment
Adjustment to on Accruing
Invested balance losses Other Balance provisions
Additional Withdrawn other distribution of
company (carrying recognized equity Others (carrying at the end
investment investment comprehensive of cash impairment
value) under the changes value) of the
income dividends provisions
equity period
or profits
method
I. Joint venture
Subtotal
II. Associate
Ningbo
Zhongchen
Equity
Investment 30726231.21 766143.93 1435972.84 32928347.98
Partnership
(Limited
Partnership)
Shanghai
Pen-making
Technology
Services Co. 2851883.87 -173710.01 2678173.86Ltd.（上海制笔技术服务
149 / 233Annual Report 2025有限公司）
Subtotal 33578115.08 592433.92 1435972.84 35606521.84
Total 33578115.08 592433.92 1435972.84 35606521.84
(2). Impairment test of long-term equity investments
√ Applicable □ Not applicable
The recoverable amount is determined as the net fair value less disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined as the present value of the expected future cash flows
□ Applicable √ Not applicable
The differences between the foregoing information and the data used in impairment testing in
previous years or external information are due to apparent reasons
□ Applicable √ Not applicable
The reasons for the disparity between the information used in impairment testing in previous
years and the actual situation of the current year are evident for the Company
□ Applicable √ Not applicable
Other descriptions:
No
150 / 233Annual Report 2025
18. Investments in other equity instruments
(1). Particulars on other equity instrument investments
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Accum
ulated Accum
Divide
Ad Wi Gains losses ulated
nd Accumulated Reason for
diti thd included in include losses
income gains designation as
on ra other d in include
Opening Closing recogni included in at fair value
Item al wn comprehens other d in
balance Others balance zed in other through other
inv inv ive income compre other
the comprehensiv comprehensive
est est in the hensive compre
current e income income
me me current income hensive
period
nt nt period in the income
current
period
Shanghai The Company
M&G held the
Culture and 10579958.34 237840.06 10817798.40 7217798.40 investment for
Creativity non-trading
Co. Ltd. purposes
Total 10579958.34 237840.06 10817798.40 7217798.40 /
(2). Amount derecognized in the current period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
19. Other non-current financial assets
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
20. Investment real estate
Measurement model of investment real estate
(1). Impairment test of investment real estate measured at cost
Unit: Yuan Currency: RMB
Property and Construction in
Item Land use right Total
buildings progress
I. Original carrying value:
1. Balance at the
97542185.7197542185.71
beginning of the period
2. Increase amount of the
current period
(1) Outsourcing
(2) Transfer-in from
inventories fixed assets and
construction in progress
(3) Increase for
business combination
3. Decrease amount of
the current period
151 / 233Annual Report 2025
(1) Disposal
(2) Other transfer-out
4. Balance at the end of
97542185.7197542185.71
the period
II. Accumulated depreciation and amortization
1. Balance at the
46160273.5446160273.54
beginning of the period
2. Increase amount of the
5094543.365094543.36
current period
(1) Accruing or
5094543.365094543.36
amortization
3. Decrease amount of
the current period
(1) Disposal
(2) Other transfer-out
4. Balance at the end of
51254816.9051254816.90
the period
III. Impairment provisions
1. Balance at the
beginning of the period
2. Increase amount of the
current period
(1) Accruing
3. Decrease amount of
the current period
(1) Disposal
(2) Other transfer-out
4. Balance at the end of
the period
IV. Carrying value
1. Carrying value at the
46287368.8146287368.81
end of the period
2. Carrying value at the
51381912.1751381912.17
beginning of the period
(2). Investment real estate without proper certificates of title
□ Applicable √ Not applicable
(3). Impairment test of investment real estate measured at cost
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
21. Fixed assets
Presented by item
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 1682453574.18 1527715803.59
Disposal of fixed assets
Total 1682453574.18 1527715803.59
152 / 233Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
Fixed assets
(1). Particulars on fixed assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Property and Machinery and Means of
Item Other equipment Total
buildings equipment transportation
I. Original carrying value:
1. Balance at the
beginning of the 1621912872.80 1048500012.18 60287921.70 437954748.96 3168655555.64
period
2. Increase
amount of the current 210036137.56 114095349.55 5188708.58 62455248.75 391775444.44
period
(1)
14833681.2651464732.222179172.8015740284.1484217870.42
Acquisition
(2) Transfer-in
from construction in 195202456.30 62630617.33 1951532.50 46714964.61 306499570.74
progress
(3) Increase
for business 1058003.28 1058003.28
combination
3. Decrease
amount of the current 1077921.15 42898609.07 4673043.86 41906949.76 90556523.84
period
(1) Disposal
41089233.444642178.8541443208.7387174621.02
or scraping
(2)
Translation difference
1077921.151809375.6330865.01463741.033381902.82
of foreign-currency
statements
4. Balance at the
1830871089.211119696752.6660803586.42458503047.953469874476.24
end of the period
II. Accumulated depreciation
1. Balance at the
beginning of the 615646942.08 618535788.21 45621237.26 347969259.05 1627773226.60
period
2. Increase
amount of the current 80900530.04 71280624.30 5722555.86 53669862.75 211573572.95
period
(1) Accruing 80900530.04 71280624.30 5439523.33 53669862.75 211290540.42
(2) Increase
for business 283032.53 283032.53
combination
3. Decrease
amount of the current 404890.33 24955656.28 3803504.25 38830070.00 67994120.86
period
(1) Disposal
23382078.793763790.8138516502.2165662371.81
or scraping
(2)
Translation difference 404890.33 1573577.49 39713.44 313567.79 2331749.05
of foreign-currency
153 / 233Annual Report 2025
statements
4. Balance at the
696142581.79664860756.2347540288.87362809051.801771352678.69
end of the period
III. Impairment provisions
1. Balance at the
beginning of the 11374587.33 1770457.29 21480.83 13166525.45
period
2. Increase
amount of the current 1643743.47 1160474.34 21439.40 76040.71 2901697.92
period
(1) Accruing 1643743.47 1160474.34 21439.40 70958.71 2896615.92
(2)
Translation difference
5082.005082.00
of foreign-currency
statements
3. Decrease
amount of the current
period
(1) Disposal
or scraping
4. Balance at the
13018330.802930931.6321439.4097521.5416068223.37
end of the period
IV. Carrying value
1. Carrying
value at the end of the 1121710176.62 451905064.80 13241858.15 95596474.61 1682453574.18
period
2. Carrying
value at the beginning 994891343.39 428193766.68 14666684.44 89964009.08 1527715803.59
of the period
Other descriptions: For fixed assets used as collaterals see “1. Important Commitments” under
Note “XVI. Commitments and Contingencies”.
(2). Particulars on temporary idle fixed assets
□ Applicable √ Not applicable
(3). Particulars on fixed assets leased in under operating leases
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing carrying value
Property and Buildings 963997.71
(4). Fixed assets without proper certificates of title
□ Applicable √ Not applicable
(5). Impairment test of fixed assets
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Disposal of fixed assets
□ Applicable √ Not applicable
154 / 233Annual Report 2025
22. Construction in progress
Presented by item
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 44073444.33 148515963.08
Engineering materials
Total 44073444.33 148515963.08
Other descriptions:
□ Applicable √ Not applicable
Construction in progress
(1). Particulars on construction in progress
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Impai Impai
Item Carrying rment Carrying rment
Carrying value Carrying value
balance provi Balance provi
sions sions
Fixed assets
not yet
33348375.2733348375.2747434136.7247434136.72
installed and
put into use
Others 9925791.19 9925791.19 14850222.42 14850222.42
Construction
799277.87799277.8786231603.9486231603.94
works
Total 44073444.33 44073444.33 148515963.08 148515963.08
(2). Changes in important construction in progress projects in the current period
□ Applicable √ Not applicable
(3). Particulars on impairment provisions accrued for construction in progress in the current
period
□ Applicable √ Not applicable
(4). Impairment test of construction in progress
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
Engineering materials
(1). Particulars on engineering materials
□ Applicable √ Not applicable
155 / 233Annual Report 2025
23. Productive biological assets
(1). Productive biological assets using cost measurement model
□ Applicable √ Not applicable
(2). Impairment test of productive biological assets using cost measurement model
□ Applicable √ Not applicable
(3). Productive biological assets using fair value measurement model
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
24. Oil and gas assets
(1). Particulars on oil and gas assets
□ Applicable √ Not applicable
(2). Impairment test of oil and gas assets
□ Applicable √ Not applicable
Other descriptions:
No
25. Right-of-use assets
(1). Particulars on right-of-use assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Property and Transportation Machinery and
Item Total
buildings vehicles equipment
I. Original carrying value
1. Balance at the
777257289.172971574.65170119.08780398982.90
beginning of the period
2. Increase amount of
332522164.231292272.42333814436.65
the current period
(1) New leases 315038902.11 1292272.42 316331174.53
(2) Increase for
21468941.8221468941.82
business combination
(3) Revaluation
-3985679.70-3985679.70
adjustment
3. Decrease amount of
234911235.47-20523.81170119.08235060830.74
the current period
(1) Disposal 235454846.40 170119.08 235624965.48
(2) Translation
difference of -543610.93 -20523.81 -564134.74
foreign-currency statements
4. Balance at the end of
874868217.934284370.88879152588.81
the period
II. Accumulated depreciation
1. Balance at the 366172997.62 2461275.34 45365.12 368679638.08
156 / 233Annual Report 2025
beginning of the period
2. Increase amount of
286862171.73569455.70287431627.43
the current period
(1) Accrual 275769609.94 569455.70 276339065.64
(2) Increase for
11092561.7911092561.79
business combination
3. Decrease amount of
216458089.4445365.12216503454.56
the current period
(1) Disposal 216458089.44 45365.12 216503454.56
4. Balance at the end of
436577079.913030731.04439607810.95
the period
III. Impairment provisions
1. Balance at the
beginning of the period
2. Increase amount of
the current period
(1) Accrual
3. Decrease amount of
the current period
(1) Disposal
4. Balance at the end of
the period
IV. Carrying value
1. Carrying value at the
438291138.021253639.84439544777.86
end of the period
2. Carrying value at the
411084291.55510299.31124753.96411719344.82
beginning of the period
(2) Impairment test of right-of-use assets
□ Applicable √ Not applicable
Other descriptions:
No
26. Intangible assets
(1). Particulars on intangible assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Un
pat
ent
ed Trademark use
Item Land use right Patent right Software Others Total
tec rights
hn
olo
gy
I. Original carrying value
1. Balance at
the beginning of the 380364083.24 21223867.74 90298953.53 54527858.98 35612250.69 582027014.18
period
2. Increase
amount of the 2239423.35 9250308.20 2481634.15 13971365.70
current period
(1)
2239423.353036660.722481634.157757718.22
Acquisition
157 / 233Annual Report 2025
(2) Internal
R&D
(3) Increase
for business 85533.48 85533.48
combination
(4)
Transfer-in from
6128114.006128114.00
construction in
progress
3. Decrease
amount of the 1840339.11 -6802219.30 106705.66 -292061.48 -5147236.01
current period
(1) Disposal 106705.66 106705.66
(2)
Translation
difference of 1840339.11 -6802219.30 -292061.48 -5253941.67
foreign-currency
statements
4. Balance at the
378523744.1323463291.0997101172.8363671461.5238385946.32601145615.89
end of the period
II. Accumulated amortization
1. Balance at
the beginning of the 73701109.57 8256346.03 14071175.99 35213079.04 18717820.67 149959531.30
period
2. Increase
amount of the 8125805.38 1576850.13 1604617.71 4864902.04 4310601.12 20482776.38
current period
(1) Accruing 8125805.38 1576850.13 1604617.71 4846862.40 4310601.12 20464736.74
(2) Increase
for business 18039.64 18039.64
combination
3. Decrease
amount of the 351270.55 -1823439.76 21800.00 -138485.63 -1588854.84
current period
(1) Disposal 21800.00 21800.00
(2)
Translation
difference of 351270.55 -1823439.76 -138485.63 -1610654.84
foreign-currency
statements
4. Balance at
the end of the 81475644.40 9833196.16 17499233.46 40056181.08 23166907.42 172031162.52
period
III. Impairment provisions
1. Balance at
the beginning of the
period
2. Increase
amount of the
current period
(1) Accruing
3. Decrease
amount of the
current period
(1) Disposal
4. Balance at
the end of the
period
IV. Carrying value
1. Carrying
value at the end of 297048099.73 13630094.93 79601939.37 23615280.44 15219038.90 429114453.37
the period
2. Carrying
value at the
306662973.6712967521.7176227777.5419314779.9416894430.02432067482.88
beginning of the
period
158 / 233Annual Report 2025
Other descriptions: For intangible assets used as collaterals see “1. Important Commitments” under
Note “XVI. Commitments and Contingencies”.The proportion of intangible assets formed by the Company’s internal R&D at the end of the
current period in the balance of intangible assets was 0.
(2). Data resources recognized as intangible assets
□ Applicable √ Not applicable
(3). Particulars on use rights of land of which the property ownership certificates have not been
obtained
□ Applicable √ Not applicable
(4). Impairment test of intangible assets
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
27. Goodwill
(1). Original carrying value of goodwill
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the current Decrease of the
period current period
Name of invested company Opening
Formed due to Closing balance
or event forming goodwill balance Dispo
business Others Others
sal
combination
Shenzhen Erya Creative
and Cultural Development
131001.23131001.23Co. Ltd.（深圳尔雅文化创意发展有限公司）
Axus Stationery (Shanghai)
30175537.1930175537.19
Company Ltd.Beckmann Holding AS 63529740.20 63529740.20
Shanghai Mymybear
Enterprise Management
41875098.7941875098.79Co. Ltd. （上海沫沫班长企业管理有限公司）
Total 93836278.62 41875098.79 135711377.41
(2). Impairment provisions of goodwill
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the current Decrease of the
Name of invested
Opening period current period
company or event forming Closing balance
balance Dispo
goodwill Accrued Others Others
sal
Shenzhen Erya Creative
and Cultural Development
131001.23131001.23Co. Ltd.（深圳尔雅文化创意发展有限公司）
Axus Stationery
30175537.1930175537.19
(Shanghai) Company Ltd.
159 / 233Annual Report 2025
Total 30306538.42 30306538.42
(3). Information regarding the asset group or the combination of asset groups to which goodwill
belongs
√ Applicable □ Not applicable
Whether it is
Composition and basis of the asset group or Operating segments and consistent
Item
combination of asset groups basis with the
previous year
The asset group comprises fixed assets These assets represent the
Back to School
right-of-use assets trademarks customer core traditional business
Holding AS has
contracts other intangible assets lease activities where the
assessed the asset
liabilities deferred income tax assets Company offers various
group containing Yes
deferred income tax liabilities and goodwill. products or services or
goodwill as of the
The cash flows generated by this asset engages in operational
valuation reference
group or combination are independent of activities in different
date.other assets or asset groups. regions.Shanghai Mymybear The asset group comprises fixed assets
Enterprise intangible assets right-of-used assets These assets represent the
Management Co. long-term prepaid expenses goodwill large retail store businessLtd. （上海沫沫班 deferred income tax assets other activities where the长企业管理有限公 non-current assets non-current liabilities Company offers various Not
司）has assessed the due within one year lease liabilities and products or services or applicable
asset group deferred income tax liabilities. The cash engages in operational
containing goodwill flows generated by this asset group or activities in different
as of the valuation combination are independent of other assets regions.reference date. or asset groups.Changes in asset groups or combinations of asset groups
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(4). Specific determination method for recoverable amount
The recoverable amount is determined as the net fair value less disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined as the present value of the expected future cash flows
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Ye Key
Im ars Basis for parameters
pai of Key parameters determin of the stable
rm the for the forecast ing the period Basis for determining
Recoverable
Item Carrying value ent for period (growth paramete (growth key parameters for the
amount
am eca rate profit rs for the rate profit stable period
ou st margin etc.) forecast margin
nt peri period discount
od rate etc.)
Back to School Fiv Projected Based on Steady-state The operating revenue
Holding AS has
e operating the profit operating growth rate is
assessed the asset 161268220.21 169322400.00
group containing yea revenue growth forecast revenue determined based on
goodwill as of the rs rate: 2.9% to provided growth rate: the long-term CPI
160 / 233Annual Report 2025
valuation reference 6.9% by the 2% growth rate in the
date. Projected profit Compan Post-tax region where the asset
margin: 10.8% to y and discount group is located
11.3% relevant rate: 12.2% while the post-tax
supporti discount rate is
ng determined according
evidence to the weighted
average cost of capital
model.Shanghai Based on
Mymybear the profit
Enterprise Projected Steady-state forecast
Management Co. operating operating
provided The post-tax discountLtd. （上海沫沫班 Fiv revenue growth revenueby the rate is determined
长企业管理有限 e rate: 6.59% to growth rate:
115955355.68 136000000.00 Compan according to the
公司）has assessed yea 20.57% 0%
y and weighted average cost
the asset group rs Projected profit Post-tax
containing relevant of capital model. margin: -0.7% to discount
goodwill as of the supporti
2.1% rate: 9.1%
valuation reference ng
date. evidence
Total 277223575.89 305322400.00 / / / / /
Other descriptions: For the current year the Company hired Shanghai Lixin Appraisal Co. Ltd. to
issue the Asset Appraisal Report on the Recoverable Amount of Goodwill Asset Groups Arising from the
Acquisition of Back to School Holding AS (hereinafter referred to as “Beckmann”) by SHANGHAI
M&G STATIONERY (SINGAPORE) PTE. LTD. Involved in the Goodwill Impairment Test Carried out
by Shanghai M&G Stationery Inc. for the Purpose of Financial Reporting with the report number of
LXA Ping Bao Zi [2026] No.090025 and the Asset Appraisal Report on the Recoverable Amount of
Goodwill Asset Groups Arising from the Acquisition of Shanghai Mymybear Enterprise Management
Co. Ltd.（上海沫沫班长企业管理有限公司）(hereinafter referred to as “Mymybear”) by Jiumu M&G
Store Enterprise Management Co. Ltd.（九木杂物社企业管理有限公司）Involved in the Goodwill
Impairment Test Carried out by Shanghai M&G Stationery Inc. for the Purpose of Financial Reporting
with the report number of LXA Ping Bao Zi [2026] No.090024 on March 30 2026. According to the
appraisal results as of December 31 2025 the carrying value of the asset group or the combination of
asset groups including goodwill of Beckmann and Mymybear acquired by the Company was
RMB161.27 million and RMB115.96 million respectively and the recoverable amount was not lower
than RMB169.32 million and RMB136.00 million respectively; after the test there was no impairment
risk in the goodwill formed by the Company’s acquisition of Beckmann and Mymybear.The differences between the foregoing information and the data used in impairment testing in previous
years or external information are due to apparent reasons
□ Applicable √ Not applicable
The reasons for the disparity between the information used in impairment testing in previous years and
the actual situation of the current year are evident for the Company
□ Applicable √ Not applicable
(5). Performance commitments and corresponding goodwill impairment
Performance commitments existed at the time goodwill was formed and are within the performance
commitment period in the current period or the previous period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
161 / 233Annual Report 2025
28. Long-term prepaid expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase Amortization Other Increase for
Opening
Item amount of the amount of the decrease business Closing balance
balance
current period current period amounts combination
Decoration fee 109306971.70 74714447.37 70232194.88 -351840.68 5775495.27 119916560.14
Others 3490550.21 5421179.43 3501377.43 -936647.18 6346999.39
Total 112797521.91 80135626.80 73733572.31 -1288487.86 5775495.27 126263559.53
Other descriptions:
The other decrease amounts are foreign exchange translation difference.
29. Deferred income tax assets/Deferred income tax liabilities
(1). Unoffset deferred income tax assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary tax temporary tax
differences Assets differences Assets
Impairment provisions of assets 137338051.99 33315819.94 120844446.20 28998769.34
Unrealized profits from internal transactions 191299636.78 31061479.70 141035187.99 23285906.53
Deductible losses
Changes in fair value of financial assets 46320.08 10190.42 2408051.41 529771.31
Deferred income 15667877.83 2804469.78 34595802.71 5845382.03
Depreciation or amortization difference 124422523.56 31105630.89 185155781.39 46282052.13
Time difference in revenue recognition 101000869.80 25173489.36 67108025.22 16766417.03
Changes in lease liabilities 427581608.67 101141280.44 399376748.00 95921485.73
Total 997356888.71 224612360.53 950524042.92 217629784.10
(2). Unoffset deferred income tax liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Taxable Deferred income Taxable Deferred income
temporary tax temporary tax
differences liabilities differences liabilities
Assets appreciation for business
combination not under the common 139812616.37 25297433.26 155090164.84 28249671.71
control
Changes in fair value of other debt
investments
Changes in fair value of other equity
7217798.401082669.766979958.341046993.75
instrument investments
Depreciation or amortization difference 67704242.02 14894933.24 63733938.58 14021466.49
Time difference in cost recognition 94285462.11 23494637.44 62531670.08 15622328.23
Changes in right-of-use assets 439544777.86 104095294.65 411719344.82 98624099.41
Changes in fair value of trading
108620317.1418659914.1779112993.2213106928.92
financial assets
Total 857185213.90 187524882.52 779168069.88 170671488.51
162 / 233Annual Report 2025
(3). Deferred income tax assets or liabilities presented on a net basis after offsetting
□ Applicable √ Not applicable
(4). Details of unrecognized deferred income tax assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Deductible temporary differences 95317231.85 80773622.60
Deductible losses 603354380.45 518009519.82
Total 698671612.30 598783142.42
(5). The deductible losses of unrecognized deferred income tax assets will expire in the following
years
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Year Closing balance Opening balance Note
2030186170026.13
2029107829141.3483692750.79
202862411790.5148975391.17
2027145673301.80162908006.28
2026101270120.67102558401.24
2025119874970.34
Total 603354380.45 518009519.82 /
Other descriptions:
□ Applicable √ Not applicable
30. Other non-current assets
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Impairmen
Item Carrying Carrying Carrying Impairment Carrying
t
balance value balance provisions value
provisions
Contract
acquisition cost
Contract
performance cost
Receivable
return cost
Contract assets
Prepayments for
real estate
4753846.494753846.4919704965.3419704965.34
engineering
equipment etc.Total 4753846.49 4753846.49 19704965.34 19704965.34
Other descriptions:
No
163 / 233Annual Report 2025
31. Assets with restricted ownership or use rights
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
At the end of the period At the beginning of the period
Item Type of Restriction Type of Restriction
Carrying balance Carrying value Carrying balance Carrying value
restriction details restriction details
Cash and
equivalents
Bills
receivable
Inventories
Including:
data
resources
Fixed Mortgaged Mortgaged
135291477.09 50557700.60 Mortgage 135291477.09 59840900.18 Mortgage
assets borrowings borrowings
Intangible Mortgaged Mortgaged
113742703.94 88363482.12 Mortgage 113742703.94 91058752.02 Mortgage
assets borrowings borrowings
Including:
data
resources
Cash and Performance Performance
equivalents bonds letter bonds letter
- Other 22409291.17 22409291.17 Pledge of credit 5977684.75 5977684.75 Pledge of credit
cash and deposits deposits
equivalents etc. etc.Fixed-term Fixed-term
Cash and
deposits deposits
equivalents
1015028800.00 1015028800.00 Frozen exceeding 1210000000.00 1210000000.00 Frozen exceeding
- Cash at
three three
bank
months months
Cash and
Project
equivalents
19530000.00 19530000.00 Frozen money
- Cash at
deposits
bank
Bank
Cash and
guarantees
equivalents Trading
624254.74 624254.74 Frozen and 93585.19 93585.19 Frozen
- Cash at deposits
litigation
bank
freezes
Cash and
equivalents
Trading
- Other 1016987.58 1016987.58 Frozen
deposits
cash and
equivalents
A time
deposit that
matures
Other
within one
current 141000000.00 141000000.00 Pledge
year and is
assets
used as
performance
bond
Investment Mortgaged Mortgaged
97542185.71 46287368.81 Mortgage 97542185.71 51381912.17 Mortgage
real estate borrowings borrowings
Total 1385655700.23 1224287885.02 1723177636.68 1578882834.31 / /
Other descriptions:
For the current year the amount of continuing involvement in bills receivable that have been
endorsed or discounted but are not yet due was RMB39233234.14 compared with RMB11149017.23
in the prior year.
164 / 233Annual Report 2025
For the current year the amount of continuing involvement in digital credit certificates that have
been endorsed or discounted but are not yet due was RMB10446427.33 compared with
RMB9926137.03 in the prior year.
32. Short-term borrowings
(1). Classification of short-term borrowings
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Pledged borrowings 30000000.00 321000000.00
Mortgaged borrowings 190000000.00
Guaranteed borrowings
Credit borrowings 24960000.00 19880000.00
Borrowing interest expenses 171111.12 181169.83
Total 245131111.12 341061169.83
Description on classification of short-term borrowings:
See 1. “Important Commitments” under “Note XVI. Commitments and Contingencies”.
(2). Particulars on overdue but yet unrepaid short-term borrowings
□ Applicable √ Not applicable
Particulars of important overdue but yet unrepaid short-term borrowings:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
33. Held-for-trading financial liabilities
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
34. Derivative financial liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Foreign exchange derivatives 46320.08
Total 46320.08
Other descriptions:
No
35. Bills payable
(1). Presentation of notes payable
□ Applicable √ Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√ Applicable □ Not applicable
165 / 233Annual Report 2025
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Within one year 5696945775.67 4738062847.51
One to two years 212733094.27 216444348.99
Two to three years 48270453.48 43336096.68
Above three years 22443255.77 8643270.02
Total 5980392579.19 5006486563.20
(2). Accounts payable with the account age over one year or overdue
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
37. Accounts received in advance
(1). Presentation of accounts received in advance
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Rent received in advance 3378737.08
Total 3378737.08
(2). Significant accounts received in advance with an age of more than one year
□ Applicable √ Not applicable
(3). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
38. Contract liabilities
(1). Contract liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Loans 57820365.32 62270073.96
Membership points 20263759.52 21223869.00
Vouchers 64093926.55 59853460.48
Total 142178051.39 143347403.44
(2). Significant contract liabilities with an age of more than one year
□ Applicable √ Not applicable
(3). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
166 / 233Annual Report 2025
39. Employee benefits payable
(1). Presentation of employee benefits payable
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the Decrease of the Closing
Item Opening balance
current period current period balance
I. Short-term benefits 180543619.89 1107868875.77 1092132618.45 196279877.21
II. Post-employment
benefits - Defined 8946459.40 129779790.15 126291800.19 12434449.36
contribution plans
III. Termination benefits 3214312.74 2097274.74 1117038.00
IV. Other benefits due
within one year
Total 189490079.29 1240862978.66 1220521693.38 209831364.57
(2). Presentation of short-term benefits
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the Decrease of the
Item Opening balance Closing balance
current period current period
I. Salary bonus
170806637.08966328996.80951689482.16185446151.72
allowance and subsidy
II. Employee benefits 240.00 8639890.72 8631090.32 9040.40
III. Social insurance 4937241.33 77086836.16 76567084.85 5456992.64
Including: Medical
4744938.5572786147.9272435057.105096029.37
insurance
Work-related
192302.783781768.833625352.30348719.31
injury insurance
Maternity
518919.41506675.4512243.96
insurance
IV. Housing provident
2927800.5547165233.6846889056.003203978.23
fund
V. Labor union and
employee education 437114.18 1698559.31 1682261.42 453412.07
funds
VI. Short-term
1432427.296255722.665980007.261708142.69
compensated absences
VII. Short-term profit
sharing plan
VIII. Other short-term
2159.46693636.44693636.442159.46
benefits
Total 180543619.89 1107868875.77 1092132618.45 196279877.21
(3). Presentation of defined contribution plans
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Opening Increase of the Decrease of the
Item Closing balance
balance current period current period
1. Basic pension 8683178.79 125526166.61 122158239.02 12051106.38
2. Unemployment insurance 263280.61 4253623.54 4133561.17 383342.98
3. Enterprise annuity payment
Total 8946459.40 129779790.15 126291800.19 12434449.36
167 / 233Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
40. Taxes payable
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value added tax (“VAT”) 71935247.70 67364971.75
Consumption tax
Business tax
Enterprise income tax 147742637.85 141700868.38
Personal income tax 12264552.03 11797380.30
Urban maintenance and construction tax 5138634.36 4707859.62
Property tax 4252883.93 3770165.05
Education surcharge 4072214.96 3797795.50
Land use tax 339610.60 237892.23
Stamp duty 4269269.50 3927147.11
Others 506.00 8653.25
Total 250015556.93 237312733.19
Other descriptions:
No
41. Other payables
(1). Presented by item
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest payable
Dividend payable
Other payables 534646908.51 518745735.51
Total 534646908.51 518745735.51
Other descriptions:
□ Applicable √ Not applicable
(2). Interest payable
Presentation by category
□ Applicable √ Not applicable
Significant interest payable overdue:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(3). Dividend payable
Presentation by category
□ Applicable √ Not applicable
168 / 233Annual Report 2025
(4). Other payables
Other payables presented by amount nature
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Margin and deposit 201684729.87 185153547.16
Product license fee 18317000.00 12643000.00
Estimated fees 258829636.53 267581460.00
Engineering and decoration fund 8733233.20 19886522.63
Others 47082308.91 33481205.72
Total 534646908.51 518745735.51
Significant other payables with the account age over one year or overdue
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
42. Held-for-sale liabilities
□ Applicable √ Not applicable
43. Non-current liabilities due within one year
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term borrowings due within one year 29698.35 4008983.34
Bonds payable due within one year
Long-term payables due within one year
Lease liabilities due within one year 213399856.12 200592728.05
Total 213429554.47 204601711.39
Other descriptions:
No
44. Other current liabilities
Particulars on other current liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Short-term bonds payable
Return amount payable 103493695.13 68885061.74
Output tax to be written off 6485535.28 6568492.61
Receivables that cannot be derecognized 49679661.47 21075154.26
Advance from shareholders 4750000.00
Others 2408051.41
Total 164408891.88 98936760.02
169 / 233Annual Report 2025
Changes in short-term bonds payable:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
45. Long-term borrowings
(1). Classification of long-term borrowings
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Pledged borrowings
Mortgaged borrowings 31998000.00 6000000.00
Guaranteed borrowings
Credit borrowings 4000000.00
Total 35998000.00 6000000.00
Notes to the classification of long-term borrowings:
No
Other descriptions:
□ Applicable √ Not applicable
46. Bonds payable
(1). Bonds payable
□ Applicable √ Not applicable
(2). Changes in bonds payable: (excluding other financial instruments such as preferred shares
classified as financial liabilities and perpetual bonds)
□ Applicable √ Not applicable
(3). Description on convertible corporate bonds
□ Applicable √ Not applicable
Accounting for transfers of equity and basis of judgment
□ Applicable √ Not applicable
(4). Description on other financial instruments classified as financial liabilities
Basic information on other financial instruments such as outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable √ Not applicable
Form of changes in financial instruments such as outstanding preferred shares and perpetual bonds at the
end of the period
□ Applicable √ Not applicable
Description on the basis for classification of other financial instruments as financial liabilities:
□ Applicable √ Not applicable
Other descriptions:
170 / 233Annual Report 2025
□ Applicable √ Not applicable
47. Lease liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term lease liabilities 427999385.28 399697915.76
Less: Lease liabilities due within one year -213399856.12 -200592728.05
Total 214599529.16 199105187.71
Other descriptions:
No
48. Long-term payables
Presented by item
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Long-term payables
(1). Long-term payables presented by amount nature
□ Applicable √ Not applicable
Special payables
(1). Special payables presented by amount nature
□ Applicable √ Not applicable
49. Long-term employee benefits payable
□ Applicable √ Not applicable
50. Estimated liabilities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance Cause of formation
External guarantee
Pending litigation 500000.00 369927.50 Civil lawsuit
Product quality assurance
Restructuring obligations
Onerous contract to be
implemented
Return amount payable
Others
Total 500000.00 369927.50 /
Other descriptions including descriptions on important assumptions and estimates related to important
estimated liabilities:
No
171 / 233Annual Report 2025
51. Deferred income
Particulars on deferred income
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Decrease of
Opening Increase of the Closing Cause of
Item the current
balance current period balance formation
period
Government
Government
34963559.04 9000000.00 28075925.44 15887633.60 subsidies
subsidies
received
Total 34963559.04 9000000.00 28075925.44 15887633.60 /
Other descriptions:
□ Applicable √ Not applicable
52. Other non-current liabilities
□ Applicable √ Not applicable
53. Share capital
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase or decrease (+ or -) due to this change
Provident
Opening
Issue Bonus funds Closing balance
balance new Others Subtotal
shares transferred
shares
shares
Total
923828420.00-2858043.00-2858043.00920970377.00
shares
Other descriptions:
The Company convened the 10th meeting of the 6th Board of Directors on March 24 2025 and the
2024 Annual General Meeting of Shareholders on April 16 2025 respectively at which the Proposal on
Re-purposing Part of the Repurchased Shares and Retiring Such Shares was reviewed and approved. It
was approved that the purpose of the repurchased shares under the 2022 Share Repurchase Plan held inthe special securities account for repurchased shares be changed from “to be used for equity incentivesor employee stock ownership plans” to “to be retired and to reduce the registered capital accordingly”.Specifically the Company will retire 2858043 shares in the special securities account for repurchased
shares and reduce its registered capital accordingly.The quantity of shares repurchased and canceled in this instance amounts to 2858043 shares with
a decrease of RMB150012246.20 in treasury shares a decrease of RMB2858043.00 in share capital
and a decrease of RMB147154203.20 in capital reserve.
54. Other equity instruments
(1). Basic information on other financial instruments such as outstanding preferred shares and
perpetual bonds at the end of the period
□ Applicable √ Not applicable
(2). Form of changes in financial instruments such as outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable √ Not applicable
Changes in other equity instruments of the current period reasons for changes and basis for relevant
accounting treatment:
172 / 233Annual Report 2025
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
55. Capital reserve
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the Decrease of the
Item Opening balance Closing balance
current period current period
Capital premium
829572634.1521282881.10147154203.20703701312.05
(Share premium)
Other capital
10747859.2410747859.24
reserve
Total 840320493.39 21282881.10 147154203.20 714449171.29
Other descriptions including descriptions on changes of the current period and reasons for changes:
1. Increase or decrease in capital premium for the current year:
(1) As stated in Note VII (53) the capital reserve was decreased by RMB147154203.20 due to the
repurchase of shares.
(2) The amount of other changes in equity recognized as capital reserve in subsidiaries of the
Company during the year was RMB21282881.10.
56. Treasury shares
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the Decrease of the
Item Opening balance Closing balance
current period current period
Repurchase
through the stock 251095546.75 48957706.02 150012246.20 150041006.57
exchange
Total 251095546.75 48957706.02 150012246.20 150041006.57
Other descriptions including descriptions on changes of the current period and reasons for changes:
(1) According to the Proposal on the Plan for Share Repurchase through the Stock Exchange
which was approved at the 8th meeting of the 6th session of the Board of Directors the Company
repurchased through the stock exchange treasury shares with a total amount of RMB48957706.02 in
the current year.
(2) As detailed in Note VII (53) to these financial statements treasury shares were decreased by
RMB150012246.20 during the year due to share repurchases.
57. Other comprehensive income
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the current period
Less: Less:
Include Included
d in in other
Amount other comprehe
Attributable to Attributable to
Opening incurred compre nsive Less: Closing
Item
the parent minority balance before income hensive income in Income tax balance
company after shareholders
tax for the income the expenses
the tax after the tax
current period in the previous
previous period and
period transferred
and to retained
173 / 233Annual Report 2025
transferr earnings
ed to in the
profit or current
loss in period
the
current
period
I. Other
comprehensiv
e income not
to be 7385207.44 -269836.42 35676.01 -305512.43 7079695.01
reclassified
into profit or
loss
Including:
Change in
re-measureme
nt of defined
benefit plans
Other
comprehensiv
e income that
may not be
1452242.85-507676.48-507676.48944566.37
reclassified to
profit or loss
under equity
method
Changes in
fair value of
other equity 5932964.59 237840.06 35676.01 202164.05 6135128.64
instrument
investments
Change in
fair value of
enterprise’s
own credit
risk
II. Other
comprehensiv
e income to be
-18808658.759452780.88519580.8911138238.91-2205038.92-7670419.84
reclassified
into profit or
loss
Including:
Other
comprehensiv
e income that
may be -92328.13 1943649.32 1943649.32 1851321.19
reclassified to
profit or loss
under equity
method
Changes in
fair value of
other debt
investments
Amount
included in
other
comprehensiv
e income on
reclassificatio
n of financial
assets
Credit
impairment
174 / 233Annual Report 2025
provisions of
other debt
investments
Cash flow
hedging -1812835.38 2296286.61 519580.89 1776705.72 -36129.66
reserve
Exchange
differences
from
-16903495.245212844.957417883.87-2205038.92-9485611.37
translation of
financial
statements
Total other
comprehensiv -11423451.31 9182944.46 555256.90 10832726.48 -2205038.92 -590724.83
e income
Other descriptions including the adjustment of the effective portion of cash flow hedging profit or loss
transferred to the initial recognition amount of the hedged item:
No
58. Special reserve
□ Applicable √ Not applicable
59. Surplus reserve
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the Decrease of the
Item Opening balance Closing balance
current period current period
Statutory surplus reserve 464201654.91 464201654.91
Arbitrary surplus reserve
Reserve fund
Enterprise development fund
Others
Total 464201654.91 464201654.91
Descriptions on surplus reserve including descriptions on changes of the current period and reasons for
changes:
The statutory surplus reserve is accrued at 10% of the parent company’s net profits and is capped at
50% of the share capital.
60. Undistributed profit
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Current period Previous period
Pre-adjustment undistributed profits at the end of the
6944027602.896287174031.99
previous period
Total adjustment amount of undistributed profits at the
beginning of the period (“+” refers to increase by
adjustment and “-” refers to decrease by adjustment)
Post-adjustment amount of undistributed profits at the
6944027602.896287174031.99
beginning of the period
Add: Net profit attributable to shareholders of the parent
1310448991.961395844392.50
company in the current period
Less: Statutory surplus reserve accrued
175 / 233Annual Report 2025
Arbitrary surplus reserve accrued
Withdrawal of general risk provision
Dividends on common shares payable 915795377.00 738990821.60
Dividends on common shares converted to stock
capital
Undistributed profit at the end of the period 7338681217.85 6944027602.89
Details on adjustment of undistributed profits at the beginning of the period:
1. Due to the retrospective adjustment based on the Accounting Standards for Business Enterprises and
their related new regulations the affected undistributed profit at the beginning of the period was
RMB0.00.
2. Due to changes in accounting policies the affected undistributed profit at the beginning of the period
was RMB0.00.
3. Due to the correction of major accounting errors the affected undistributed profit at the beginning of
the period was RMB0.00.
4. Due to changes in the scope of the consolidated financial statements caused by the business
combination under common control the affected undistributed profit at the beginning of the period was
RMB0.00.
5. Due to other adjustments the affected undistributed profit at the beginning of the period was
RMB0.00.
61. Revenue and operating costs
(1). Particulars on revenue and operating costs
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the current Amount accounted for in the previous
Item period period
Revenue Costs Revenue Costs
Main operations 25004637548.36 20424594798.09 24170660271.82 19619066898.47
Other operations 59272288.11 38219165.21 57588426.83 30685661.00
Total 25063909836.47 20462813963.30 24228248698.65 19649752559.47
(2). Information on the breakdown of revenue and operating costs
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Traditional business Direct office supplies business Inter-branch offset Total
Classification
Operating Operating Operating Operating
of contracts Revenue Revenue Revenue Revenue
costs costs costs costs
Types of goods
1. Sales of
10115534650.416515410350.5115048206300.0714068895343.98-160209343.46-159710896.4025003531607.0220424594798.09
goods
2. Management
fee for 485849.00 485849.00
franchising
3. Hardware
620092.34620092.34
and software
4. Material
1207851.171341292.311207851.171341292.31
income
5. Supply chain
32086324.3326190115.39-1188288.0630898036.2726190115.39
service
6. Others 16688111.47 2395072.41 -756090.82 15932020.65 2395072.41
Classification
by operation
territory
1. China 9066604152.28 5860941442.05 15048206300.07 14068895343.98 -162153722.34 -159710896.40 23952656730.01 19770125889.63
176 / 233Annual Report 2025
2. Other
1100018726.44684395388.571100018726.44684395388.57
countries
Classification
by the time of
goods transfer
1. Recognized
at a specific 10166622878.72 6545336830.62 15048206300.07 14068895343.98 -162153722.34 -159710896.40 25052675456.45 20454521278.20
point in time
2. Recognized
within a
specific time
period
Total 10166622878.72 6545336830.62 15048206300.07 14068895343.98 -162153722.34 -159710896.40 25052675456.45 20454521278.20
Other descriptions:
□ Applicable √ Not applicable
(3). Description on performance obligations
□ Applicable √ Not applicable
(4). Description on allocation to remaining performance obligations
□ Applicable √ Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √ Not applicable
Other descriptions:
Unit: Yuan Currency: RMB
Amount in the current Amount in the last
Item
period period
Description on revenue from customer contracts 25052675456.45 24218767480.33
Rental income 11234380.02 9481218.32
Total 25063909836.47 24228248698.65
62. Taxes and surcharges
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Consumption tax
Business tax
Urban maintenance and
36747010.3635234681.73
construction tax
Education surcharge 31320876.65 29905670.30
Resource tax
Property tax 16043954.13 15124917.89
Land use tax 1468334.78 1267099.83
Taxes and surcharges
Stamp duty 14686752.60 13952936.42
Others 123412.21 160252.54
Total 100390340.73 95645558.71
Other descriptions:
No
177 / 233Annual Report 2025
63. Selling expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Salaries and benefits 480803215.92 463856805.74
Channel construction fee 154292542.04 157597672.44
Depreciation and amortization 227119788.26 199413845.99
Brand promotion fee 131999447.30 122371874.05
Business promotion fee 206723945.78 174530342.37
Others 659205691.73 620269069.02
Total 1860144631.03 1738039609.61
Other descriptions:
No
64. Administrative expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in Amount accounted for in
Item
the current period the previous period
Salaries and benefits 452014997.62 415620864.74
Depreciation and amortization 154644281.65 155964622.72
Office expense 22184626.64 20262468.64
Share-based Payments 27362922.48 75565518.76
Others 310025022.24 314389373.35
Total 966231850.63 981802848.21
Other descriptions:
No
65. R&D expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in Amount accounted for in
Item
the current period the previous period
Salaries and benefits 121078253.59 108773449.55
Inventory consumption 42408392.42 45025440.91
Others 26152708.86 35347090.20
Total 189639354.87 189145980.66
Other descriptions:
No
66. Finance expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in Amount accounted for in
Item
the current period the previous period
Interest expense 27831891.86 27331016.15
Including: Interest expense of lease 20771027.05 19277519.25
178 / 233Annual Report 2025
liabilities
Less: Interest income -35152616.54 -64177866.11
Exchange gains and losses -6225653.72 -11521794.93
Others 8470151.42 8744909.87
Total -5076226.98 -39623735.02
Other descriptions:
No
67. Other income
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Classification based on nature
current period previous period
Government subsidies 118760958.97 105118017.62
Input tax credits 10776241.33 26605598.57
Handling charge on withholding
949201.64706772.53
personnel income tax
Direct VAT relief 3250.00 7800.00
Total 130489651.94 132438188.72
Other descriptions:
No
68. Investment income
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Long-term equity investment income
592433.92-3962188.64
accounted for under the equity method
Investment income from disposal of
7500000.00
long-term equity investment
Investment income from
held-for-trading financial assets during
the holding period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt investment
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
1803396.093597430.59
held-for-trading financial assets
Investment income from disposal of
other equity instrument investments
Investment income from disposal of
debt investment
Investment income from disposal of
other debt investments
Gains from debt restructuring
Total 9895830.01 -364758.05
Other descriptions:
179 / 233Annual Report 2025
No
69. Net gain on exposure hedging
□ Applicable √ Not applicable
70. Gain on change in fair value
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Sources of income from changes in Amount accounted for in the Amount accounted for in the
fair value current period previous period
Held-for-trading financial assets 58155252.93 54361789.99
Including: Income from changes in
fair value of derivative financial
instruments
Held-for-trading financial liabilities
Investment real estate measured at
fair value
Total 58155252.93 54361789.99
Other descriptions:
No
71. Credit impairment losses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Bad debt losses of notes receivable 3412048.47 -766192.55
Bad debt losses of accounts receivable 14743023.58 22408405.72
Bad debt losses of other receivables 4717813.84 6768653.98
Impairment losses of debt investment
Impairment losses of other debt
investments
Bad debt losses of long-term receivables
Impairment losses related to financial
guarantee
Total 22872885.89 28410867.15
Other descriptions:
No
72. Asset impairment losses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in Amount accounted for in the
Item
the current period previous period
I. Impairment losses of contract
assets
II. Loss for decline in value of
inventories and loss for impairment 6474305.31 1482316.16
of contract performance cost
III. Impairment losses of long-term
equity investment
IV. Impairment losses of investment
real estate
180 / 233Annual Report 2025
V. Impairment losses of fixed assets 2896615.92 11396995.52
VI. Impairment losses of engineering
materials
VII. Impairment losses of
construction in progress
VIII. Impairment losses of productive
biological assets
IX. Impairment losses of oil and gas
assets
X. Impairment losses of intangible
assets
XI. Impairment losses of goodwill
XII. Others
Total 9370921.23 12879311.68
Other descriptions:
No
73. Gains from asset disposal
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Gaines or losses from disposal of
-2717992.09-148497.50
fixed assets
Gaines or losses from disposal of
-129913.06138212.61
right-of-use assets
Total -2847905.15 -10284.89
Other descriptions:
No
74. Non-operating profits
Particulars on non-operating profits
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted Amount accounted Amount included in the
Item for in the current for in the previous current non-recurring
period period gains and losses
Total gains from disposal of
92585.3321145.1792585.33
non-current assets
Including: Gains from
disposal of fixed assets
Gains from
disposal of intangible assets
Gains from exchange of
non-currency assets
Donations received
Government subsidies 67250000.00 50495805.49 67250000.00
Liquidated damages and fine
4057523.6524069222.814057523.65
income
Others 4231382.37 3543640.12 4231382.37
Total 75631491.35 78129813.59 75631491.35
181 / 233Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
75. Non-operating expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount included in the
Amount accounted for in Amount accounted for in
Item current non-recurring
the current period the previous period
gains and losses
Total losses from disposal of
non-current assets
Including: Losses from disposal
of fixed assets
Losses from disposal
of intangible assets
Losses from exchange of
non-currency assets
Offering of donations 6781960.13 3802728.09 6781960.13
Loss from damage and retirement
3306225.545691909.943306225.54
of non-current assets
Fine late payment 7137075.14 4699931.33 7137075.14
Compensation expenses 725250.52 956627.30 725250.52
Others 2191692.55 341264.35 2191692.55
Total 20142203.88 15492461.01 20142203.88
Other descriptions:
No
76. Income tax expenses
(1). Table of income tax expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Current income tax expenses 338026758.11 356063320.52
Deferred income tax expenses 9507440.27 10459734.92
Total 347534198.38 366523055.44
(2). Adjustment process of accounting profits and income tax expenses
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for
Item
in the current period
Total profits 1708704232.97
Income tax expenses calculated at statutory/applicable rates 256305634.95
Effect of applying different tax rates to subsidiaries 64482058.82
Effect of adjusting income taxes of the previous periods -24863769.30
Effect of non-taxable income -115637.05
Effect of non-deductible costs expenses and losses 10278934.44
Effect of deductible losses of deferred income tax assets not recognized in the
previous period
182 / 233Annual Report 2025
Effect of deductible temporary differences or deductible losses of deferred
46538331.42
income tax assets not recognized in the current period
Tax effect of offsetting losses in previous years -5091354.90
Income tax expenses 347534198.38
Other descriptions:
□ Applicable √ Not applicable
77. Other comprehensive income
√ Applicable □ Not applicable
For details refer to Note VII (57) Other Comprehensive Income.
78. Items of the cash flow statement
(1). Cash related to operating activities
Other cash received from operating activities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Recovery of current amount and advances 1249801400.20 1673016388.16
Special allowances and subsidies 164105412.87 147308734.33
Interest income 35152616.54 64177866.11
Non-operating profits 4391650.75 27015657.72
Total 1453451080.36 1911518646.32
Descriptions on other cash received from operating activities:
No
Cash paid for other operating activities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Inter-company business 1173439524.94 1303684272.66
Sales expenses 1095233431.51 1039633623.52
Administration expenses 267345549.89 303320097.07
Financial expenses 8141125.36 8583688.94
Non-operating expenses 16335978.34 12116411.77
R&D expenses 26825061.47 34127283.46
Total 2587320671.51 2701465377.42
Descriptions on cash paid for other operating activities:
No
(2). Cash related to investing activities
Significant cash received related to investing activities
□ Applicable √ Not applicable
Significant cash paid related to investing activities
□ Applicable √ Not applicable
Other cash received relating to investing activities
√ Applicable □ Not applicable
183 / 233Annual Report 2025
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Compensation for the acquisition of
the original controlling shareholders 647135.65 497844.25
of Axus Stationery
Net cash received from the
4572026.66
acquisition of the subsidiary
Total 5219162.31 497844.25
Description on other cash received relating to investing activities:
No
Other cash paid relating to investing activities
□ Applicable √ Not applicable
(3). Other cash received related to financing activities
Other cash received relating to financing activities:
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Advance from shareholders 4750000.00
Total 4750000.00
Description on other cash received relating to financing activities:
No
Other cash paid for financing-related activities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Item
current period previous period
Repurchase payment of treasury shares 48957706.02 164262456.55
Purchase of minority equity of
35292114.56
subsidiaries
Cash paid for capital reduction 83268833.33
Lease payments related to the new lease
320908072.33286225486.38
standards
Total 369865778.35 569048890.82
Descriptions on other cash paid for financing-related activities:
No
Changes in liabilities arising from financing activities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Increase of the current period Decrease of the current period
Closing
Item Opening balance Non-cash Non-cash
Cash changes Cash changes balance
changes changes
Short-term
341061169.83317960000.005413296.10419303354.81245131111.12
borrowings
Long-term borrowings
(including non-current
10008983.3430000000.001004158.514985443.5036027698.35
liabilities due within
one year)
Lease liabilities
(including non-current
399697915.76354585463.70320908072.335375921.85427999385.28
liabilities due within
one year)
184 / 233Annual Report 2025
Treasury shares -
251095546.7548957706.02150012246.20150041006.57
Stock exchange
Dividend payable 915795377.00 915795377.00
Total 1001863615.68 396917706.02 1276798295.31 1660992247.64 155388168.05 859199201.32
(4). Notes to the presentation of cash flows on a net basis
□ Applicable √ Not applicable
(5). Significant activities and financial effects that do not involve current cash receipts and
payments but affect the financial position of the enterprise or may affect the enterprise’s cash
flows in the future
□ Applicable √ Not applicable
79. Supplementary information for the cash flow statement
(1). Supplementary information for the cash flow statement
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Supplementary information Amount in the current period Amount in the last period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 1361170034.59 1454734931.09
Add: Impairment provisions of assets 9370921.23 12879311.68
Credit impairment losses 22872885.89 28410867.15
Depreciation of fixed assets oil and gas
216385083.78213524911.19
assets and productive biological assets
Amortization of right-of-use assets 276339065.64 256401112.69
Amortization of intangible assets 20464736.74 21627433.27
Amortization of long-term prepaid expenses 73733572.31 61428447.42
Losses from disposal of fixed assets
intangible assets and other long-term assets 2847905.15 10284.89
(“-” refers to gains)
Losses from retirement of fixed assets (“-”
3213640.215670764.77
refers to gains)
Losses from changes in fair value (“-”
-58155252.93-54361789.99
refers to gains)
Financial expenses (“-” refers to income) 25137529.75 18549263.81
Investment losses (“-” refers to gains) -9895830.01 364758.05
Decrease in deferred income tax assets (“-”
-4947530.255610913.07
refers to increase)
Increase in deferred income tax liabilities
14223622.994868235.30
(“-” refers to decrease)
Decrease in inventories (“-” refers to
-120768209.6931710912.54
increase)
Decrease in operating receivables (“-”
-342696673.89126083918.39
refers to increase)
Increase in operating payables (“-” refers to
792776967.14101826521.47
decrease)
Others
Net cash flow generated from operating
2282072468.652289340796.79
activities
2. Major investing and financing activities not involving cash payment and receipts:
Debts converted to capital
Convertible company bonds due within one
year
Fixed assets acquired under financing
185 / 233Annual Report 2025
leases
3. Particulars on net changes in cash and cash equivalents:
Closing balance of cash 2942543207.01 3726616032.18
Less: Opening balance of cash 3726616032.18 3708085136.83
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -784072825.17 18530895.35
(2). Net cash amount paid for the acquisition of subsidiaries in the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount
Cash or cash equivalents paid in the current period from the
22500000.00
business combination in the period
Including: Shanghai Mymybear Enterprise Management Co. Ltd.
22500000.00（上海沫沫班长企业管理有限公司）
Less: Cash and cash equivalents held by subsidiaries at the
8648108.58
acquisition date
Including: Shanghai Mymybear Enterprise Management Co. Ltd.
4076081.92（上海沫沫班长企业管理有限公司）
SHANGHAI M&G STATIONERY (THAILAND) CO. LTD. 4572026.66
Add: Cash or cash equivalents paid in the current period from the
business combination in prior periods
Net cash payments for the acquisition of subsidiaries 13851891.42
Other descriptions:
No
(3). Net cash amount received from the disposal of subsidiaries in the current period
□ Applicable √ Not applicable
(4). Composition of cash and cash equivalents
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 2942543207.01 3726616032.18
Including: Cash on hand 809289.01 1316928.26
Bank deposits readily available for
2922656405.973692325654.15
payment
Other cash and equivalents readily
19077512.0332973449.77
available for payment at any time
Due from central bank available for
payment
Due from placements with banks
and other financial institutions
Call loan to banks and other
financial institutions
II. Cash equivalents
Including: Bond investments due within
three months
III. Closing balance of cash and cash
2942543207.013726616032.18
equivalents
Including: Cash and cash equivalents of
186 / 233Annual Report 2025
which the use is restricted for the parent
company or subsidiaries within the
group
(5). Presentation of cash and cash equivalents with restricted use
□ Applicable √ Not applicable
(6). Monetary funds not classified as cash and cash equivalents
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance Reason
Deposits for project money 19530000.00 Frozen
Deposits for letter of credit 4253113.16 1819766.78 Pledge
Performance bond 18247095.96 3674534.42 Pledge
Trading margin 435785.60 93585.19 Frozen
Fixed-term deposits Period exceeding three months
1015028800.001210000000.00
exceeding three months at maturity
Others 581201.98 483383.55 Pledge
Frozen funds 533336.79 Frozen
Total 1039079333.49 1235601269.94 /
Other descriptions:
□ Applicable √ Not applicable
80. Notes to items of the statement of changes in owners’ equity
Description on “other” item name and adjustment amount adjusted for balance at the end of the previous
year:
□ Applicable √ Not applicable
81. Foreign currency monetary items
(1). Foreign currency monetary items
√ Applicable □ Not applicable
Unit: Yuan
Foreign currency RMB translated at
Translation foreign
Item balance at the end of the end of the period
exchange rate
the period balance
Cash and equivalents - - 257372375.38
Including: USD 30815570.69 7.0288 216596483.27
EURO 1832631.34 8.2355 15092635.40
HKD 14708.68 0.9032 13284.88
GBP 375.00 9.4346 3537.98
VND 4077299363.00 0.0003 1223189.81
NOK 26992977.68 0.6968 18808706.85
DKK 664641.16 1.1018 732301.63
SGD 287226.60 5.4586 1567855.12
SEK 57034.00 0.7617 43442.80
THB 14790730.96 0.2225 3290937.64
Accounts receivable - - 113180757.81
Including: USD 11530805.59 7.0288 81047726.33
EURO 48462.36 8.2355 399111.77
VND 460950912.00 0.0003 138285.27
187 / 233Annual Report 2025
NOK 25442001.98 0.6968 17727986.98
THB 62326505.44 0.2225 13867647.46
Long-term borrowings - -
Including: USD
EURO
HKD
Accounts payable - - 31207052.50
Including: USD 225045.44 7.0288 1581799.39
VND 18578487966.48 0.0003 5573546.39
NOK 17178039.24 0.6968 11969657.74
HKD 9305.00 0.9032 8404.28
CHF 82774.45 8.8510 732636.66
THB 50970822.67 0.2225 11341008.04
Other receivables - - 1048492.78
Including: USD 48973.33 7.0288 344223.74
VND 1369414802.00 0.0003 410824.44
NOK 5689.73 0.6968 3964.60
THB 1210261.50 0.2225 269283.18
SGD 3700.00 5.4586 20196.82
Other payables - - 89562798.83
Including: USD 4000.00 7.0288 28115.20
VND 2014631909.00 0.0003 604389.57
HKD 16000.00 0.6968 11148.80
NOK 924671.52 0.2225 205739.41
THB 19682946.34 4.4940 88455160.85
SGD 47309.75 5.4586 258245.00
Other descriptions:
No
(2). Descriptions on overseas operating entities including: for important overseas business entities
their main overseas business locations bookkeeping currency and selection basis shall be disclosed;
in case of any change in the bookkeeping currency the reasons for such change shall be also
disclosed
□ Applicable √ Not applicable
82. Lease
(1). As a lessee
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
√ Applicable □ Not applicable
The current variable lease payments not included in the measurement of lease liabilities but
included in related asset costs or the current profit or loss were RMB11505979.24.Rental of simplified short-term leases and leases of low-value assets
√ Applicable □ Not applicable
The simplified treatment of short-term lease expenses included in relevant asset costs or current
period expenses amounted to RMB10632494.88. Additionally the simplified treatment of low-value
asset lease expenses included in relevant asset costs or current period expenses (excluding short-term
lease expenses of low-value assets) amounted to RMB17682.31.Sale and leaseback transactions and basis of judgment
188 / 233Annual Report 2025
□ Applicable √ Not applicable
Total cash outflows related to leases was 343064228.76 (Unit: Yuan Currency: RMB)
(2) As a lessor
Operating leases as a lessor
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Including: income relating to
Item Rental income variable lease payments not
recognized as lease receipts
Operating lease income 11234380.02
Total 11234380.02
Financial leases as a lessor
□ Applicable √ Not applicable
Reconciliation statement of undiscounted lease receipts and net investment in leases
□ Applicable √ Not applicable
Undiscounted lease receipts for the next five years
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Annual undiscounted lease receipts
Item
Closing balance Opening balance
First year 11554167.36 11741770.78
Second year 11300823.68 11005320.44
Third year 11519674.92 11377225.84
Fourth year 11614434.66 11520441.00
Fifth year 11828432.35 11614434.66
Total undiscounted lease
51420880.1558975207.82
receipts after five years
(3). Profit or losses on sales recognized under finance leases as a producer or distributor
□ Applicable √ Not applicable
Other descriptions:
No
83. Data resources
□ Applicable √ Not applicable
84. Others
□ Applicable √ Not applicable
VIII. R&D expenses
1. Presented based on nature of expense
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in Amount accounted for in
Item
the current period the previous period
Employee benefits 121078253.59 108773449.55
189 / 233Annual Report 2025
Consumption materials 42408392.42 45025440.91
Others 26152708.86 35347090.20
Total 189639354.87 189145980.66
Including: Expensed R&D expenditure 189639354.87 189145980.66
Capitalized R&D expenditure
Other descriptions:
No
2. Development expenses on R&D projects eligible for capitalization
□ Applicable √ Not applicable
Significant capitalized R&D projects
□ Applicable √ Not applicable
Provision for impairment of development expenses
□ Applicable √ Not applicable
Other descriptions:
No
3. Significant outsourced ongoing research projects
□ Applicable √ Not applicable
IX. Change in Consolidation Scope
1. Business combination not under common control
√ Applicable □ Not applicable
(1). Business combination not under common control in the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Cash flows
Pro
port Income of Net profit of of the
Time and Recognition
Cost of ion Way to acquiree from acquiree from acquiree
place of Purchas basis of
Name of acquiree gaining the of gain the purchase the purchase from the
gaining e date purchase
equity equ equity date to the end date to the end
equity date purchase date
ity of the period of the period to the end of
(%)
the period
Shanghai The date
Mymybear Acquisit when
Enterprise ion not control of
Management Co. 100 January 2025/1/10 30000000.00 under the acquiree 24308390.73 -16077082.69 3356716.35Ltd. （上海沫沫 .00 10 2025 common is班长企业管理有 control effectively限公司） obtained
The date
SHANGHAI when
M&G control of
70. Capital June 12
STATIONERY 2025/6/12 20760105.90 the acquiree 15877557.92 -3240140.32 3298829.52
00 increase 2025
(THAILAND) is
CO. LTD. effectively
obtained
Other descriptions:
No
190 / 233Annual Report 2025
(2). Combination cost and goodwill
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Shanghai Mymybear EnterpriseCombination cost Management Co. Ltd. （上海沫沫班长企业管理有限公司）
--Cash 30000000.00
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity interests on the purchase date held
before the purchase date
--Others
Total combination costs 30000000.00
Less: share in the fair value of identifiable net assets acquired -11875098.79
The amount of goodwill/combination cost less than the share
41875098.79
in the fair value of identifiable net assets acquired
SHANGHAI M&G STATIONERY
Combination cost
(THAILAND) CO. LTD.--Cash 20760105.90
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity interests on the purchase date held
before the purchase date
--Others
Total combination costs 20760105.90
Less: share in the fair value of identifiable net assets acquired 20760105.90
The amount of goodwill/combination cost less than the share
in the fair value of identifiable net assets acquired
Method of determining the fair value of the combination cost:
□ Applicable √ Not applicable
Fulfillment of performance commitments:
□ Applicable √ Not applicable
The main formation reason for the large goodwill:
□ Applicable √ Not applicable
Other descriptions:
No
(3). Identifiable assets and liabilities of acquirees on purchase date
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Shanghai Mymybear Enterprise
SHANGHAI M&G STATIONERYManagement Co. Ltd. （上海沫沫班(THAILAND) CO. LTD.长企业管理有限公司）
191 / 233Annual Report 2025
Fair value on Carrying value on Fair value on Carrying value
purchase date purchase date purchase date on purchase date
Assets: 35766983.96 35766983.96 4572026.66 4572026.66
Cash and equivalents 4076081.92 4076081.92 4572026.66 4572026.66
Accounts receivable 413022.58 413022.58
Inventories 8015735.32 8015735.32
Fixed assets 774970.75 774970.75
Intangible assets 67493.84 67493.84
Prepayment 612664.08 612664.08
Other receivables 3100513.12 3100513.12
Right-of-use assets 10376380.03 10376380.03
Long-term prepaid
5775495.275775495.27
expenses
Deferred income tax
2554627.052554627.05
assets
Liabilities: 47642082.75 47642082.75
Borrowings
Accounts payable 1077921.21 1077921.21
Deferred income tax 2594095.01 2594095.01
liabilities
Other payables 31513395.94 31513395.94
Lease liabilities 10218508.18 10218508.18
Other liabilities 349286.44 349286.44
Employee benefits
1888875.971888875.97
payable
Net assets -11875098.79 -11875098.79 4572026.66 4572026.66
Less: Non-controlling
interests
Net assets acquired -11875098.79 -11875098.79 4572026.66 4572026.66
The determination method of the fair value of identifiable assets and liabilities:
Determined based on the carrying value of the assets and liabilities of Shanghai Mymybear Enterprise
Management Co. Ltd. （上海沫沫班长企业管理有限公司）
Contingent liability of acquiree undertaken in the business combination:
No
Other descriptions:
No
(4). Gains or losses from re-measurement of equity held before the purchase date at fair value
Whether there is a transaction that through multiple transaction step by step to realize business
combination and gaining the control during the Reporting Period
□ Applicable √ Not applicable
(5). Inability to reasonably determine the acquisition consideration or the fair value of acquirees’
identifiable assets and liabilities at acquisition dates or the period-ends of the combinations
□ Applicable √ Not applicable
(6). Other descriptions
□ Applicable √ Not applicable
192 / 233Annual Report 2025
2. Business combination under common control
□ Applicable √ Not applicable
3. Reverse acquisition
□ Applicable √ Not applicable
193 / 233Annual Report 2025
4. Disposal of subsidiaries
Whether there were any transactions or events during the current period in which control of subsidiaries was lost
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Method and
Difference main Amount of
between the Fair value assumptions other
Carrying
Disp disposal price of Gains or for comprehensi
value of
osal and the share remaining losses determining ve income
Proporti Remainin remaining
price of the equity equity arising from the fair related to the
on of Disposal g equity equity
at Basis for of the interests in remeasurem value of the disposed of
disposal method interests interests in
Time of the determinin subsidiary in the ent of remaining equity
Name of at the at the on the the
cease of time g time of the consolidat remaining equity investment
subsidiary time of time of date of consolidate
control of cease of consolidated ed equity interests in in the
cease of cease of cease of d financial
ceas control financial financial interests the subsidiary
control control control statements
e of statements statements under the consolidated transferred to
(%) (%) on the date
contr corresponding on the date fair value financial return on
of cease of
ol to the of cease of method statements investment
control
investment control on the date or retained
disposed of of cease of earnings
control
Jiangsu M&G Life
Enterprise
Management Co. CancellatiJune 3 CancellaLtd.（江苏晨光生 100.00 on 2025 tioncompleted活馆企业管理有限公司）
Other descriptions:
□ Applicable √ Not applicable
Whether there was a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of control during the current period
□ Applicable √ Not applicable
194 / 233Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
5. Changes in scope of consolidated financial statements for other reasons
Descriptions on changes in the scope of consolidated financial statements for other reasons (e.g. establishing subsidiaries clearing subsidiaries etc.) and their
related circumstances:
√ Applicable □ Not applicable
One new subsidiary was established during the current period: Lanzhou M&G Cultural Supplies Co. Ltd. (兰州晨光文化用品有限公司)
6. Others
□ Applicable √ Not applicable
195 / 233Annual Report 2025
X. Equity in Other Entities
1. Equity in subsidiaries
(1). Composition of the corporate group
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Main Shareholding ratio
Regist
place (%)
Subsidiary Registered ered Nature of the Acquisition
of
name capital addre business way
busines Direct Indirect
ss
s
Colipu Technologies Retail
Shangh ShangGroup Co. Ltd（. 科力普科 59400.00 wholesale 77.78 Establishmentai hai技集团股份有限公司） etc.Shanghai M&G Stationery Production
Shangh Shang& Gift Co. Ltd.（上海晨 19941.94 sale and so 100 Establishmentai hai光文具礼品有限公司） forth
Shanghai M&G Stationery Retail
Shangh ShangSales Co. Ltd.（上海晨光 1300.00 wholesale 100 Establishmentai hai文具销售有限公司） etc.Guangzhou M&G
Stationery&Gifts Sales Retail Guang Guan
（广州晨光文具 3950.00 wholesale 100 Establishment Co. Ltd. zhou gzhouetc.礼品销售有限公司）
Yiwu Chenxing Stationery RetailCo. Ltd.（义乌市晨兴文 Yiwu 1800.00 Yiwu wholesale 100 Establishment具用品有限公司） etc.Acquired by
Zhejiang Benwei business Information
combination
Technology Co. Ltd. (浙 Yiwu 1000.00 Yiwu technology 100
not under
江本味科技有限公司) services
common
control
M&G Life EnterpriseManagement Co. Ltd.（晨 Retail Shangh Shang
10000.00 wholesale 100 Establishment
光生活馆企业管理有限 ai hai
etc.公司）
Shanghai M&G Jiamei Production
Shangh ShangStationery Co. Ltd.（上海 3000.00 sale and so 100 Establishmentai hai晨光佳美文具有限公司） forth
Shanghai M&G
Information Technology Shangh Shang E-commerce
（上海晨光信息 5000.00 55 Establishment Co. Ltd. ai hai business etc.科技有限公司）
Zhejiang New M&G Life
Enterprise Management Retail Hangz Hang
3000.00 wholesale 100 EstablishmentCo. Ltd.（浙江新晨光生 hou zhouetc.活馆企业管理有限公司）
Jiumu M&G Store
Enterprise Management Retail Shangh Shang
20000.00 wholesale 85 EstablishmentCo. Ltd.（九木杂物社企 ai haietc.业管理有限公司）
196 / 233Annual Report 2025
Acquired by
Shanghai M&G Zhenmei Retail business
Shangh ShangStationery Co. Ltd.（上海 1000.00 wholesale 100 combinationai hai晨光珍美文具有限公司） etc. under common
control
Harbin M&G Sanmei Acquired byStationery Co. Ltd.（哈尔 Retail business HarbiHarbin 1900.00 wholesale 100 combination
滨晨光三美文具有限公 n
etc. under common
司） control
Zhengzhou M&G Acquired by
Stationery&Gifts Co. Ltd. Retail business Zhengz Zheng
2600.00 wholesale 100 combination
（郑州晨光文具礼品有 hou zhouetc. under common限责任公司）
control
Acquired by
Shenzhen Erya Creative business
and Cultural Development Retail Shenzh Shenz combination
2000.00 wholesale 51Co. Ltd.（深圳尔雅文化 en hen not underetc.创意发展有限公司） common
control
Retail
Shanghai M&G Office Shangh Shang
5000.00 wholesale 100 Establishment
Stationery Co. Ltd. ai hai
etc.Lianyungang Colipu
Office Supplies Co. Ltd. Liany Retail Lianyu
（连云港市科力普办公 100.00 ungan wholesale 100 Establishment ngangg etc.用品有限公司）
Shenyang Colipu Office
Supplies Trading Co. Ltd. Retail Shenya Sheny
（沈阳科力普办公用品 50.00 wholesale 100 Establishment ng angetc.贸易有限公司）
Hangzhou Sanmei M&G Retail
Hangz HangStationery Co. Ltd.（杭州 1800.00 wholesale 100 Establishmenthou zhou三美晨光文具有限公司） etc.Acquired by
business
Production
Axus Stationery Shangh Shang combination
8100.00 sale and so 56
(Shanghai) Company Ltd. ai hai not under
forth
common
control
Acquired by
Jiangsu Marco Pen Co. business ProductionLtd.（江苏马可笔业有限 Siyan combination Siyang 5000.00 sale and so 100g not under
公司） forth
common
control
Acquired by
Changchun Macro business Production
（长春 Chang Chan combination Stationery Co. Ltd. 4000.00 sale and so 100chun gchun not under马可文教用品有限公司） forth
common
control
Production Acquired by
Yili Senlai Wood Co. Ltd.Yili 2000.00 Yili sale and so 100 business
（伊犁森徕木业有限公forth combination
197 / 233Annual Report 2025
司） not under
common
control
Acquired by
business
Retail
Axus Stationery (Hong Hong Hong combination
550.00 wholesale 100
Kong) Company Ltd. Kong Kong not under
etc.common
control
Acquired by
business
Production
International stationery Vietna Vietn combination
100.00 sale and so 100
company m am not under
forth
common
control
Shanghai Qizhihaowan
Culture and Creativity Co. Shangh Shang Creative
10000.00 57 EstablishmentLtd.（上海奇只好玩文化 ai hai service创意有限公司）
Shanghai Chenxun
Enterprise Management Shangh Shang Enterprise
（上海晨讯企业 23500.00 100 Establishment Co. Ltd. ai hai management管理有限公司）
Shanghai Colipu
Information Technology Shangh Shang Software
（上海科力普信 500.00 100 Establishment Co. Ltd. ai hai development息科技有限公司）
Shanghai Meixin
Shangh Shang Wholesale
Stationery Co. Ltd. (上海 5000.00 100 Establishment
ai hai and retail
美新文具有限公司)
SHANGHAI M&G
STATIONERY Singap Singa Enterprise
4606.45 100 Establishment
(SINGAPORE) PTE. ore pore management
LTD.M&G Jiumu Enterprise
Management (Beijing) Beijin Wholesale
（晨光九木企业 Beijing 100.00 100 Establishment Co. Ltd. g and retail管理（北京）有限公司）
Acquired by
business
Back to School Holding Norwa Norw Holding combination
99.55100
AS y ay company not under
common
control
Acquired by
business
Production
Norwa Norw combination
Beckmann AS 66.00 sale and so 100
y ay not under
forth
common
control
Acquired by
Retail business
Beckmann Norway GmbH Germa Germ
2.50 wholesale 100 combination（Germany） ny any
etc. not under
common
198 / 233Annual Report 2025
control
Unite Retail
United
Beckmann Norway Inc 0.0001 d wholesale 100 Establishment
States
States etc.Retail
Beckmann Norway GmbH Austri
Austria 3.50 wholesale 100 Establishment
（Austria） a
etc.Guangdong South China Retail
Huizho Huizh
Stationery Co. Ltd. (广东 5000.00 wholesale 100 Establishment
u ou
华南文教用品有限公司) etc.Shanghai Colipu
Technology Development Shangh Shang Technical
（上海科力普科 10000.00 100 Establishment Co. Ltd. ai hai services技发展有限公司）
Shanghai YichengxiangE-commerce Co. Ltd.（上 Retail Shangh Shang
50.00 wholesale 100 Establishment
海益诚祥电子商务有限 ai hai
etc.公司）
Hubei M&G Central
China Information General AcquisitionTechnology Co. Ltd.（湖 Wuha cargo that does not Wuhan 20000.00 100n warehousing constitute a北晨光华中信息科技有
services business限公司）
Shanghai M&G Online
Selection Stationery Co. Retail Shangh Shang
（上海晨光在线甄选 2000.00 wholesale 100 Establishment Ltd. ai haietc.文具有限公司）
Acquired by
Shanghai Mymybear business
Enterprise Management Retail Shangh Shang combination
3000.00 wholesale 100Co. Ltd.（上海沫沫班长 ai hai not underetc.企业管理有限公司） common
control
Acquired by
business
SHANGHAI M&G Retail
Thaila Thaila combination
STATIONERY 13500.00 wholesale 70
nd nd not under
(THAILAND) CO. LTD. etc.common
control
Lanzhou M&G Cultural Retail
Lanzho Lanzh
Supplies Co. Ltd. (兰州晨 2000.00 wholesale 100 Establishment
u ou
光文化用品有限公司) etc.Additional Note: The registered capital currency for Axus Stationery (Hong Kong) Company Ltd.is HKD International Stationery Company and Beckmann Norway Inc. is USD SHANGHAI M&G
STATIONERY (SINGAPORE) PTE. LTD. is SGD Back to School Holding AS and Beckmann AS is
NOK Beckmann Norway GmbH (Germany) and Beckmann Norway GmbH (Austria) is EURO
SHANGHAI M&G STATIONERY (THAILAND) CO. LTD. is THB.Descriptions on the situation that the shareholding ratio in the subsidiary is different from the share of
the voting rights:
No
Basis for holding half or less of the voting rights of the investee but still controlling the investee and
holding more than half of the voting rights but not controlling the investee:
No
199 / 233Annual Report 2025
Basis for controlling important structured entities included in the scope of consolidated financial
statements:
No
Basis for determining whether the Company is an agent or a principal:
No
Other descriptions:
No
(2). Important non-wholly owned subsidiaries
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Profits and losses Dividends declared
Minority attributable to and distributed to Minority equity
Name of subsidiaries shareholding minority minority balance at the end
ratio shareholders in the shareholders in the of the period
current period current period
Colipu TechnologiesGroup Co. Ltd.（科
22.22%7435.8860345.30
力普科技集团股份有限公司）
Descriptions on the situation that the shareholding ratio of minority shareholders in the subsidiary is
different from that of the voting rights:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(3). Major financial information of important non-wholly owned subsidiaries
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
Closing balance Opening balance
Name of
subsidiar Non-curre Non-curreCurrent Non-curren Total Current Total Current Non-current Total Current Total
ies nt nt assets t assets assets liabilities liabilities assets assets assets liabilities liabilities
liabilities liabilities
Colipu
Technol
ogies
Group
Co. Ltd.（科力813622.5512825.64826448.19550677.294189.90554867.19672667.1715896.79688563.96447918.095265.99453184.08普科技集团股份有限
公司）
Amount accounted for in the current period Amount accounted for in the previous period
Cash flow Cash flow
Name of Total Total
from from
subsidiaries Revenue Net profit comprehensive Revenue Net profit comprehensive
operating operating
income income
activities activities
Colipu
Technologies
Group Co. Ltd. 1504820.63 33464.83 33464.83 52476.66 1383143.57 32178.31 32178.31 52709.16
（科力普科技集团股份有限公司）
200 / 233Annual Report 2025
Other descriptions:
No
(4). Significant restrictions on the use of corporate group assets and the liquidation of corporate
group debts
□ Applicable √ Not applicable
(5). Financial support or other support provided to structured entities included in the scope of
consolidated financial statements
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
2. Transactions which result in a change in the share of owners’ equity in the subsidiary but the
Company still controls the subsidiary
□ Applicable √ Not applicable
3. Equity in joint ventures or associates
√ Applicable □ Not applicable
(1). Important joint ventures or associates
□ Applicable √ Not applicable
(2). Major financial information of important joint ventures
□ Applicable √ Not applicable
(3). Major financial information of important associates
□ Applicable √ Not applicable
(4). Summary financial information of unimportant joint ventures and associates
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance/Amount Opening balance/Amount
accounted for in the current accounted for in the previous
period period
Joint ventures:
Total carrying value of investments
Total of the following items calculated according to the shareholding ratio
- Net profits
- Other comprehensive income
- Total comprehensive income
Associates:
Total carrying value of investments 35606521.84 33578115.08
Total of the following items calculated according to the shareholding ratio
- Net profits 592433.92 -3962188.64
- Other comprehensive income 1435972.84 308191.25
- Total comprehensive income 2028406.76 -3653997.39
Other descriptions:
No
201 / 233Annual Report 2025
(5). Descriptions on significant limitation of the ability of a joint venture or associate to transfer
funds to the Company
□ Applicable √ Not applicable
(6). Excess losses incurred by a joint venture or associate
□ Applicable √ Not applicable
(7). Unrecognized commitments related to joint venture investment
□ Applicable √ Not applicable
(8). Contingent liabilities related to joint venture or associate investment
□ Applicable √ Not applicable
4. Important joint operations
□ Applicable √ Not applicable
5. Equity in structured entities not included in the consolidated financial statements
Descriptions on structured entities not included in the consolidated financial statements:
□ Applicable √ Not applicable
6. Others
□ Applicable √ Not applicable
XI. Government subsidies
1. Government subsidies recognized at the end of the current period based on amounts receivable
□ Applicable √ Not applicable
Reasons for not receiving the projected amount of government subsidies at the projected point in time
□ Applicable √ Not applicable
2. Liability items involving government subsidies
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount
recogniz Other
ed as chang
Financial Subsidies non-oper Other income es in Related to
statement Opening balance increased in the ating entered in the the Closing balance assets/inc
item current period income current period curren ome
in the t
current period
period
Deferred Asset-rela
19963559.041500000.005575925.4415887633.60
income ted
Deferred Income-re
15000000.007500000.0022500000.00
income lated
Total 34963559.04 9000000.00 28075925.44 15887633.60 /
202 / 233Annual Report 2025
3. Government subsidies recognized as profit and loss of the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the Amount accounted for in the
Type
current period previous period
Asset-related 5575925.44 5416244.55
Income-related 113185033.53 150197578.56
Total 118760958.97 155613823.11
Other descriptions:
No
XII. Risks Associated with Financial Instruments
1.Financial instrument risk
√ Applicable □ Not applicable
We face various financial risks in its business operations: credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and other price risk). The above financial risks and the
risk management policies adopted by us to reduce these risks are as follows:
The Board of Directors is responsible for planning and establishing the Company’s risk
management structure formulating the Company’s risk management policies and related guidelines and
supervising the implementation of risk management measures. We have formulated risk management
policies to identify and analyse the risks faced by us. These risk management policies clearly stipulate
specific risks covering many aspects in the management of market risk credit risk and liquidity risk.We regularly evaluate the market environment and changes in the Company’s business activities to
determine whether to update the risk management policies and systems. The Company’s risk
management is carried out in accordance with the policies approved by the Board of Directors.Identifying evaluating and avoiding related risks through working closely with other business
departments of the Company. The Internal Audit Department of the Company conducts regular audits on
risk management control and procedures and reports the audit results.We diversify the risk of financial instruments through appropriate diversified investment and
business portfolios and reduce the risks relating to concentration in a single industry specific region or
specific counterparty through formulation of corresponding risk management policies.(I) Credit risk
Credit risk refers to the risk of the Company’s financial losses due to the failure of the counterparty
to perform its contractual obligations.The main sources of credit risk for the Company primarily arise from cash and equivalents bills
receivable accounts receivable financing of accounts receivable and other receivables.The Company’s monetary funds are mainly bank deposits deposited in reputable state-owned banks
and other large and medium-sized listed banks with high credit ratings thus we believe that there are no
significant credit risks and almost no major losses caused by bank defaults.In addition for notes receivable accounts receivable financing receivables and other receivables
we set relevant policies to control credit risk exposure. We evaluate the customer’s credit qualifications
and set the corresponding credit period based on the customer’s financial status possibility of obtaining
guarantees from a third party credit history and other factors such as current market conditions. We
regularly monitor customer credit records. For customers with poor credit records we use written
dunning and shorten or cancel the credit period etc. to ensure that the Company’s overall credit risk is
within the controllable range.(II) Liquidity risk
Liquidity risk is the risk of a shortage of funds of the Company when the Company is performing
its obligation to settle in the form of delivery of cash or other financial assets.The Company’s policy is to ensure that there is sufficient cash to pay off the debts due. Liquidity
risk is centrally controlled by the Company’s Finance Department. Finance Department ensures that the
203 / 233Annual Report 2025
Company has sufficient funds to repay debts under all reasonable forecasts by monitoring cash balances
marketable securities at any time and rolling forecasts of the cash flows in the coming 12 months.Finance Department also continuously monitors whether the Company complies with the provisions of
the loan agreement and obtains commitments from major financial institutions to provide sufficient
reserve funds so as to meet short- and long-term funding needs.Financial liabilities of the Company are presented as unrealized contractual cash flows on the
maturity date as follows:
Closing balance
Item Immediate Above five Total undiscounted
Within one year One to two years Two to five years Carrying value
repayment years contract amount
Short-term
171111.12247863498.00248034609.12245131111.12
borrowings
Accounts
5980392579.195980392579.195980392579.19
payable
Other payables 534646908.51 534646908.51 534646908.51
Non-current
liabilities due 29698.35 229328642.12 229358340.47 213429554.47
within one year
Long-term
36792355.9036792355.9035998000.00
borrowings
Lease liabilities 142690320.04 80035902.22 1001014.34 223727236.60 214599529.16
Total 200809.47 6992231627.82 179482675.94 80035902.22 1001014.34 7252952029.79 7224197682.45
Balance at the end of last year
Item Immediate Above five Total undiscounted
Within one year One to two years Two to five years Carrying value
repayment years contract amount
Short-term
181169.83340880000.00341061169.83341061169.83
borrowings
Accounts
5006486563.205006486563.205006486563.20
payable
Other payables 518745735.51 518745735.51 518745735.51
Non-current
liabilities due 8983.34 218933041.34 218942024.68 204601711.39
within one year
Long-term
6000000.006000000.006000000.00
borrowings
Lease liabilities 128853810.92 77417674.75 2409642.05 208681127.72 199105187.71
Total 190153.17 6085045340.05 128853810.92 83417674.75 2409642.05 6299916620.94 6276000367.64
(III) Market risk
Market risk of financial instruments is the risk that the fair value or future cash flows of financial
instruments will fluctuate due to changes in market prices including exchange rate risk interest rate risk
and other price risks.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate due to changes in market rates.Interest-bearing financial instruments with fixed and floating rates expose the Company to fair
value interest rate risk and cash flow interest rate risk respectively. The Company determines the
percentages of fixed interest rate instruments and floating interest rate instruments according to the
market environment and maintains an appropriate combination of fixed interest rate instruments and
floating interest rate instruments through regular review and monitoring. When necessary the Company
adopts interest rate swap instruments to hedge the interest rate risk.As of December 31 2025 assuming all other variables remain constant a 100 basis points increase
or decrease in the borrowing interest rate calculated at a floating rate will result in a decrease or increase
of RMB280.96 in the net profit of the Company (as of December 31 2024: RMB3.51 million).
2. Exchange rate risk
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate due to changes in foreign exchange rates.The Company continuously monitors the scale of foreign-currency transactions and
foreign-currency assets and liabilities to minimize foreign exchange risks. In addition the Company may
also sign forward foreign exchange contracts or currency swap contracts to avoid exchange rate risk.During the current period and prior periods the Company did not sign any forward foreign exchange
contracts or currency swap contracts.
204 / 233Annual Report 2025
Foreign exchange risk faced by the Company mainly comes from financial assets and liabilities
denominated in USD and the amounts of foreign currency financial assets and liabilities converted into
RMB are shown below:
Closing balance Balance at the end of last year
Item Other foreign Other foreign
USD Total USD Total
currencies currencies
Cash and
216596483.2740775892.11257372375.38174064268.6724478100.25198542368.92
equivalents
Accounts
81047726.3332133031.48113180757.81147352950.6115984570.50163337521.11
receivable
Other receivables 344223.74 704269.04 1048492.78 956629.61 136355.22 1092984.83
Total foreign
currency financial 297988433.34 73613192.63 371601625.97 322373848.89 40599025.97 362972874.86
assets
Accounts payable 1581799.39 29625253.11 31207052.50 27692768.42 24740290.75 52433059.17
Other payables 28115.20 89534683.63 89562798.83 19285689.85 561932.16 19847622.01
Total foreign
currency financial 1609914.59 119159936.74 120769851.33 46978458.27 25302222.91 72280681.18
liabilities
As of December 31 2025 assuming all other variables remain constant a 5% appreciation or
depreciation of the RMB against USD will result in an increase or decrease of RMB12.57 million in the
net profit of the Company (as of December 31 2024: RMB14.53 million).
3. Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices other than exchange rate risk and interest rate risk.The Company’s other price risk arises mainly from investments in various types of equity
instruments and is subject to the risk of changes in the price of equity instruments.
2. Hedging
(1). The Company conducts hedging operations for risk management
√ Applicable □ Not applicable
Economic
Qualitative and
Risk Relationship Effectiveness of the Hedging
Quantitative Impact of Hedging
management between the Relationship in Achieving
Item Information Activities on Risk
strategy and Hedged Item and the Risk Management
about the Hedged Exposure
objectives the Hedging Objective
Risk
Instrument
The Company conducts By using
foreign exchange derivative purchased foreign
Based on the
transactions in accordance exchange
Company’s
with the principles of derivative
prudent forecasts
legality prudence safety contracts the
Foreign exchange of foreign
and effectiveness. It has Company hedges
forwards foreign currency receipts
established a sound and the risk of
exchange swaps and actual
effective risk management fluctuations in
foreign exchange To effectively business
system and internal control exchange rates and
options hedge against exposure the
mechanism for foreign interest rates
structured foreign exchange settlement dates
exchange derivative arising from its
Forward foreign forwards interest market risks and of foreign
transactions appropriately foreign currency
exchange rate swaps prevent adverse exchange
staffed with professionals receipt business
contracts currency swaps effects arising derivative
responsible for investment thereby effectively
or combinations from significant transactions need
decision-making transaction managing the risk
thereof are used fluctuations in to match the
execution and risk control. exposure to
to mitigate the exchange rates. Company’s
Strict decision-making significant cash
impact of forecasted timing
procedures reporting flow volatility
exchange rate of foreign
systems and risk monitoring caused by
risk. currency receipts
measures are in place with exchange rate
deposit periods or
clearly defined authorization movements in
foreign currency
limits operational such receipts and
payments.guidelines accounting reducing the
treatment and disclosure impact of
205 / 233Annual Report 2025
requirements. The types exchange rate
scale and duration of fluctuations on the
transactions are determined Company’s
based on the Company’s risk operations.tolerance ensuring effective
overall management.Other descriptions:
□ Applicable √ Not applicable
(2). The Company conducts qualifying hedging operations and applies hedge accounting
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Cumulative fair value
hedge adjustment of
Carrying value of the the hedged item Hedge effectiveness Impact of hedge accounting
Item hedged item and the included in the and sources of hedge on the Company’s financial
hedging instrument recognized carrying ineffectiveness statements
value of the hedged
item
Types of hedge risk
As at the end of the
Reporting Period the
amount recognized in
derivative financial
liabilities was RMB
46320.08 the amount
Correlation between
recognized in other
Foreign exchange the hedged item and
-46320.08 Not applicable comprehensive income was
risks the hedging
RMB -36129.66 and the
instrument
amount recognized in
deferred tax assets was
RMB10190.42. The gain
or loss arising during the
Reporting Period amounted
to RMB -2293967.43.Types of hedge
Other descriptions:
□ Applicable √ Not applicable
(3). The Company conducts hedging operations for risk management expects to achieve its risk
management objectives but does not apply hedge accounting
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
3. Transfer of financial asset
(1). Classification of transfer modalities
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount of Basis for
Nature of financial
Transfer modality financial assets Derecognition determining
assets transferred
transferred derecognition
Bill endorsement Bank acceptance 26467790.18 Terminated Almost all risks
206 / 233Annual Report 2025
bills and remuneration
of the ownership
have been
transferred
Commercial
Bill endorsement 29545500.78 Non-terminated Not applicable
acceptance draft
Finance company
Bill endorsement 9687733.36 Non-terminated Not applicable
acceptance bills
Assignment or Digital accounts
subdivision receivable claims 10446427.33 Non-terminated Not applicable
transfer certificates
Total / 76147451.65 / /
(2). Financial assets derecognized as a result of a transfer
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Modality for the
Amount of financial Gains or losses related
Item transfer of financial
assets derecognized to derecognition
assets
Bank acceptance bills Bill endorsement 26467790.18
Total / 26467790.18
(3). Transferred financial assets that continue to be involved
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount of assets Amount of liabilities
Item Asset transfer modality generated through generated through
continuing involvement continuing involvement
Commercial acceptance
Bill endorsement 29545500.78 29545500.78
draft
Finance company
Bill endorsement 9687733.36 9687733.36
acceptance bills
Digital accounts
Assignment or
receivable claims 10446427.33 10446427.33
subdivision transfer
certificates
Total / 49679661.47 49679661.47
Other descriptions:
□ Applicable √ Not applicable
XIII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing fair value
Level-2 fair Level-3 fair
Item Level-1 fair value
value value Total
measurement
measurement measurement
I. Continuous fair value
measurement
(I) Trading financial assets
1. Financial assets at fair value
through profit or loss
207 / 233Annual Report 2025
(1) Debt instrument investment
(2) Equity instrument investment
(3) Derivative financial assets
(4) Others 4108620317.14 4108620317.14
2. Financial assets designated as at fair
value through profit or loss
(1) Debt instrument investment
(2) Equity instrument investment
(II) Other debt investments
(III) Other equity instrument
10817798.4010817798.40
investments
(IV) Investment real estate
1. Land use rights used for rent
2. Rental buildings
3. Land use rights held and ready to be
transferred after appreciation
(V) Biological assets
1. Consumable biological assets
2. Productive biological assets
(VI) Receivables financing 31211919.98 31211919.98
Total assets continuously measured
4108620317.1442029718.384150650035.52
at fair value
(VI) Trading financial liabilities
1. Financial liabilities at fair value
through profit or loss
Including: Trading bonds issued
Derivative financial liabilities
Others
2. Financial liabilities designated as at
fair value through profit or loss
(VII) Derivative financial liabilities 46320.08 46320.08
Total liabilities continuously
46320.0846320.08
measured at fair value
II. Non-continuous fair value
measurement
(I) Assets held for sale
Total assets not continuously
measured at fair value
Total liabilities not continuously
measured at fair value
2. Basis for determining market prices of items continuously and not continuously measured at the
first-level fair value
√ Applicable □ Not applicable
The input value of the first level is the unadjusted quotation of the same asset or liability that can be
obtained on the measurement date in the active market.
208 / 233Annual Report 2025
3. Qualitative and quantitative information on valuation techniques and important parameters
adopted by items continuously and not continuously measured at the second-level fair value
√ Applicable □ Not applicable
The input value of the second level is the directly or indirectly observable input value of related
assets or liabilities except the input value of the first level.
4. Qualitative and quantitative information on valuation techniques and important parameters
adopted by items continuously and not continuously measured at the third-level fair value
□ Applicable √ Not applicable
5. Information on adjustment between the beginning carrying value and the closing carrying value
of items continuously measured at the third-level fair value and sensitivity analysis on
unobservable parameters
□ Applicable √ Not applicable
6. For items continuously measured at fair value in case of any conversion between various levels
during the period reasons for the conversion and policies to determine the conversion time
should be provided
□ Applicable √ Not applicable
7. Changes in valuation techniques and reasons for changes during the period
□ Applicable √ Not applicable
8. Particulars on fair value of financial assets and liabilities which are not measured at fair value
□ Applicable √ Not applicable
9. Others
□ Applicable √ Not applicable
XIV. Related Parties and Related-Party Transactions
1. Particulars on the parent company of the Company
√ Applicable □ Not applicable
Unit: 0’000 Currency: RMB
The parent
The parent
Name of the company’s
Registered Nature of the Registered company’s voting
parent shareholding
address business capital right ratio in the
company ratio in the
Company (%)
Company (%)
M&G
Holdings Industrial
Shanghai 300 million 58.20 58.20
(Group) Co. Investment
Ltd.Descriptions on the parent company of the Company
No
The ultimate controlling party of the Company is Chen Huwen Chen Huxiong and Chen Xueling
Other descriptions:
No
2. Particulars on subsidiaries of the Company
Particulars on subsidiaries of the Company are shown in the relevant notes
√ Applicable □ Not applicable
209 / 233Annual Report 2025
For particulars on subsidiaries of the Company see Note X. Equity in Other Entities for details.
3. Particulars on joint ventures and associates of the Company
For important joint ventures and associates of the Company see the Notes for details
√ Applicable □ Not applicable
For important joint ventures and associates of the Company see Note X. “Equity in Other Entities”
for details.Particulars on other joint ventures and associates which have related-party transactions with the
Company in the current period or had related-party transactions with the Company in the previous
period and form balances are as follows
√ Applicable □ Not applicable
Name of joint venture and associate Relationship with the Company
Ningbo Zhongchen Equity Investment Partnership
Associates
(Limited Partnership)Shanghai Pen-making Technology Services Co. Ltd（. 上海Associates制笔技术服务有限公司）Shanghai Mymybear Enterprise Management Co. Ltd.（上Associates海沫沫班长企业管理有限公司）
Other descriptions:
√ Applicable □ Not applicableDuring the current period Shanghai Mymybear Enterprise Management Co. Ltd.（上海沫沫班长企业管理有限公司） became a controlled subsidiary resulting from a business combination not under
common control.
4. Particulars on other related parties
√ Applicable □ Not applicable
Relationship between other related parties and
Name of other related parties
the Company
PELEG DESIGN Ltd Others
Shanghai M&G Charity Foundation Others
Shanghai KACO Industrial Co. Ltd. Others
Guo Weilong Others
Guo Shaomin Others
Nanjing Zhaochen Stationery Sales Co. Ltd. Others
Nanjing Chenri Stationery Sales Co. Ltd. Others
Nanjing Youchen Stationery Sales Co. Ltd. Others
Nanjing Liuhe District Weifeng Qichen Cultural
Others
Products Co. Ltd.Nanjing Chenzhiheng Stationery Sales Co. Ltd.（南Others京晨之恒文化用品销售有限公司）Nanjing Chenzhiguang Stationery Sales Co. Ltd.（南Others京晨之光文化用品销售有限公司）Nanjing Chenzhipei Stationery Sales Co. Ltd.（南京Others晨之沣文化用品销售有限公司）
RISING GOAL INVESTMENTS PTE. LTD. Others
Contemporary Amperex Technology Co. Limited Others
Other descriptions:
No
210 / 233Annual Report 2025
5. Particulars on related-party transactions
(1). Related-party transactions for the purchase and sales of goods and the rendering and receipt
of services
Table of information on the purchase of goods/the receipt of services
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount
Amount Over the
Related-party Approved accounted for
accounted for transaction line
Related party transaction transaction line in the
in the current or not (if
content (if applicable) previous
period applicable)
period
Receipt of
PELEG DESIGN Ltd 2470420.00 2769000.00
services
Shanghai KACO Purchase of
6747179.131047086.13
Industrial Co. Ltd. goods
Shanghai Mymybear
Enterprise
Management Co. Ltd. Purchase of 174147.01
（上海沫沫班长企业 goods管理有限公司）
Shanghai Pen-making
Technology Services Receipt of
（上海制笔技 533886.22 57825.74 Co. Ltd. services术服务有限公司）
M&G Holdings Purchase of
133.14
(Group) Co. Ltd. goods
Table of information on the sale of goods/the rendering of services
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Related-party Amount accounted for Amount accounted for
Related party
transaction content in the current period in the previous period
Sales entities controlled
Sale of goods 6068721.47 180530383.08
by Guo Weilong
Sales entities controlled
Sale of goods 256305112.44 85811972.83
by Guo Shaomin
Sales entities controlled Provision of labour
1366980.77
by Guo Shaomin service
PELEG DESIGN Ltd Sale of goods 1655687.01 740060.70
Shanghai Mymybear
Enterprise Management
（上海沫沫班长 Sale of goods 2735930.79 Co. Ltd.企业管理有限公司）
Shanghai Mymybear
Enterprise Management Provision of labour
1522745.49Co. Ltd.（上海沫沫班长 service企业管理有限公司）
Shanghai Pen-making
Technology Services Co. Provision of labourLtd（. 上海制笔技术服务 33822.92 service有限公司）
211 / 233Annual Report 2025
RISING GOAL
INVESTMENTS PTE. Sale of goods 52097285.65 21495428.17
LTD.M&G Holdings (Group)
Sale of goods 100555.26 41330.97
Co. Ltd.Contemporary Amperex
Sale of goods 189650.17 121250.66
Technology Co. Limited
Shanghai M&G Charity
Sale of goods 110853.28
Foundation
Particulars on related-party transactions for the purchase and sales of goods and the rendering and
receipt of services
√ Applicable □ Not applicable
No
(2). Particulars on related-party entrusted management/contracting and entrusting
management/outsourcing
Table of information on the Company’s entrusted management/contracting:
□ Applicable √ Not applicable
Particulars on related-party entrusting/contracting
□ Applicable √ Not applicable
Table of information on the Company’s entrusting management/outsourcing
□ Applicable √ Not applicable
Particulars on related-party management/outsourcing
□ Applicable √ Not applicable
(3). Particulars on related-party leases
The Company as the lessor:
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Rental income Rental income
Type of leased
Name of lessee recognized in the recognized in the
assets
current period previous period
Shanghai Mymybear EnterpriseManagement Co. Ltd.（上海沫沫 Self-owned 396330.28office building班长企业管理有限公司）
M&G Holdings (Group) Co. Ltd. Self-owned
193458.72
（晨光控股（集团）有限公司） office building
M&G Holdings (Group) Co. Ltd.Property fee 20954.37
（晨光控股（集团）有限公司）
M&G Holdings (Group) Co. Ltd.Energy cost 30096.28
（晨光控股（集团）有限公司）
212 / 233Annual Report 2025
The Company as the lessee:
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the current period Amount accounted for in the previous period
Rental Rental
costs for Variable costs for Variable
short-term lease short-term lease
leases and payments leases and payments
Interest Interest
Name of Type of leases of not Increase in leases of not Increase in
Rental expense on Rental expense on
lessor leased assets low-value included right-of-use low-value included right-of-use
payments lease payments lease
assets with in lease assets assets with in lease assets
liabilities liabilities
simplified liabilities simplified liabilities
treatment (if treatment (if
(if applicable) (if applicable)
applicable) applicable)
Self-owned
houses
(including
office
M&G buildings
Holdings workshops
6065000.00696074.7216941226.924852000.0079337.90
(Group) parking
Co. Ltd. spaces
warehouses
dormitory
buildings
etc.)
Self-owned
M&G
office
Holdings
buildings 70857.17 21016938.20 1308506.87 6904298.76 66857.16 19187344.23 1568961.13 12508685.91
(Group)
and parking
Co. Ltd.spaces
M&G
Holdings
Utilities 6006506.14 6391171.48
(Group)
Co. Ltd.Descriptions on related-party leases
□ Applicable √ Not applicable
213 / 233Annual Report 2025
(4). Particulars on related-party guarantees
The Company as a guarantor
□ Applicable √ Not applicable
The Company as a guaranteed party
□ Applicable √ Not applicable
Descriptions on related-party guarantees
□ Applicable √ Not applicable
(5). Related-party fund lending
□ Applicable √ Not applicable
(6). Related-party asset transfer and debt restructuring
□ Applicable √ Not applicable
(7). Compensation of key management personnel
□ Applicable √ Not applicable
(8). Other related-party transactions
□ Applicable √ Not applicable
6. Receivables from and payables to related parties
(1). Receivables
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Items Related party Carrying Bad debt Carrying
Bad debt provisions
balance provisions balance
Shanghai
Accounts M&G
125264.216263.2114684.004405.20
receivable Charity
Foundation
Shanghai
Mymybear
Enterprise
Accounts Managementreceivable Co. Ltd.（上
312428.4115621.42
海沫沫班长企业管理有限公司）
Sales entities
Accounts
controlled by 2288601.66 114430.08
receivable
Guo Weilong
Contemporar
Accounts y Amperex
94017.47470.0921862.07109.31
receivable Technology
Co. Limited
Accounts Sales entities
16003402.57800170.13230915.8411545.79
receivable controlled by
214 / 233Annual Report 2025
Guo Shaomin
M&G
Accounts Holdings
2097.2210.4919935.0099.68
receivable (Group) Co.Ltd.RISING
GOAL
Accounts 17357788.4
INVESTME 53752198.68 3023786.60 867889.42
receivable 3
NTS PTE.LTD.Accounts PELEG
1096376.7554818.84163134.438156.72
receivable DESIGN Ltd
Shanghai
Pen-making
Technology
Prepaid Services Co. 12800.00accounts Ltd.（上海制笔技术服务有限公司）
Shanghai
Mymybear
Enterprise
Other Managementreceivables Co. Ltd.（上
6054.68302.73
海沫沫班长企业管理有限公司）
M&G
Other Holdings
141884.187094.2113714.29685.71
receivables (Group) Co.Ltd.Sales entities
Other
controlled by 288532.11 14426.61
receivables
Guo Shaomin
(2). Payables
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at Carrying balance at the
Items Related party
the end of the period beginning of the period
Sales entities
Accounts payable controlled by Guo 2938.49
Weilong
Sales entities
Accounts payable controlled by Guo 28513.59 2884.61
Shaomin
Shanghai KACO
Accounts payable 255776.88 1045140.04
Industrial Co. Ltd.Shanghai
Mymybear
Enterprise
Accounts payable Management Co. 156447.87Ltd.（上海沫沫班长企业管理有限
215 / 233Annual Report 2025
公司）
Sales entities
Other payables controlled by Guo 24000.00 32000.00
Weilong
Sales entities
Other payables controlled by Guo 866000.00 632000.00
Shaomin
Shanghai KACO
Other payables 20000.00
Industrial Co. Ltd.Other payables Guo Shaomin 4250000.00
M&G Holdings
Lease liabilities 11861111.14 15451571.65
(Group) Co. Ltd.Non-current liabilities due M&G Holdings
20310133.2719939265.14
within one year (Group) Co. Ltd.
(3). Others
□ Applicable √ Not applicable
7. Related-party commitments
□ Applicable √ Not applicable
8. Others
□ Applicable √ Not applicable
XV. Share-based Payments
1. Various equity instruments
(1). Details
□ Applicable √ Not applicable
(2). Outstanding stock options or other equity instruments at the end of the period
□ Applicable √ Not applicable
2. Particulars on equity-settled share-based payment
□ Applicable √ Not applicable
3. Particulars on cash-settled share-based payment
□ Applicable √ Not applicable
4. Share-based payment expense in the current period
□ Applicable √ Not applicable
5. Particulars on modification and termination of share-based payment
□ Applicable √ Not applicable
6. Others
□ Applicable √ Not applicable
216 / 233Annual Report 2025
XVI. Commitments and Contingencies
1. Important commitments
√ Applicable □ Not applicable
Important external commitments nature and amount existing on the balance sheet date
1. Particulars on mortgaged assets
(1) The subsidiary Axus Stationery (Shanghai) Company Ltd. (hereinafter referred to as “AxusStationery”) entered into the Maximum Mortgage Contract numbered ZD9874202200000005 and the
Supplementary Agreement to the Maximum Mortgage Contract number ZD9874202200000005-01 with
Shanghai Pudong Development Bank Co. Ltd. Fengxian Sub-branch respectively on September 15
2022 and September 22 2025 under which it mortgaged its lands and plants under Property HFDQ Zi
(2013) No. 015437 Property HFDQ Zi (2013) No. 013396 and Property HFDQ Zi (2015) No. 015718 at
the maximum amount of secured obligation of RMB200 million and for the term of credit line from
September 15 2022 to December 31 2027.
(2) The subsidiary Jiangsu Marco Pen Co. Ltd. (江苏马可笔业有限公司) entered into the
Maximum Mortgage Contract numbered BD133202411010001201 with Jiangsu Siyang Rural
Commercial Bank Co. Ltd. on October 30 2024 under which it mortgaged its lands and plants under
Su (2019) Siyang County Real Estate No. 0018047 Su (2019) Siyang County Real Estate No. 0018032
Su (2019) Siyang County Real Estate No. 0017990 and Su (2019) Siyang County Real Estate No.
0017993 at the maximum principal limit of RMB49507300 and for the term of credit line from October
302024 to October 17 2027.
(3) The subsidiary Jiangsu Marco Pen Co. Ltd. (江苏马可笔业有限公司) entered into the
Maximum Mortgage Contract numbered DY131425000031 with Bank of Jiangsu Co. Ltd. Suqian
Branch on June 4 2025 under which it mortgaged its lands and plants under Su (2019) Siyang County
Real Estate No. 0017990 Su (2019) Siyang County Real Estate No. 0018047 Su (2019) Siyang County
Real Estate No. 0018032 and Su (2019) Siyang County Real Estate No. 0017993 at the maximum
amount of secured obligation of RMB45.78 million and for the term of credit line from June 4 2025 to
May 21 2028.
(4) The subsidiary Jiangsu Marco Pen Co. Ltd. (江苏马可笔业有限公司) entered into the
Maximum Pledge Contract numbered 110011125001C001 with Bank of Jiangsu Co. Ltd. Suqian
Branch on December 19 2025 under which it pledged its patents namely: an automatic plate turnover
device (Certificate No. CN109850536B) an automatic feeding round stacking plate device (Certificate
No. CN107253613B) a defect detection and sorting device for wooden pencil boards during processing
(Certificate No. CN105548209B) and a preparation method for colored pencil lead (Certificate No.
CN101412867B). The maximum principal amount secured under this contract is RMB10.00 million
with the term of the pledge facility valid from December 19 2025 to December 19 2026.
2. Important commitments on the balance sheet date
Among them the unconfirmed commitments related to related parties are detailed in Note XIV.“Related Parties and Related-Party Transactions”; those related to investments in joint ventures are
detailed in Note X. “Equity in Other Entities”; and those related to lease are detailed in Note VII.(82)
Lease.
2. Contingencies
(1). Important contingencies on the balance sheet date
√ Applicable □ Not applicable
The contingent liabilities related to investments in joint ventures or associated enterprises are
detailed in Note X. “Equity in Other Entities”.
(2). If the Company has no important contingent issues that need to be disclosed it should also be
explained:
□ Applicable √ Not applicable
217 / 233Annual Report 2025
3. Others
□ Applicable √ Not applicable
XVII. Post-balance Sheet Date Events
1. Important non-adjustment matters
□ Applicable √ Not applicable
2. Profit distribution
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Profits or dividends proposed to be
915795377.00
distributed
Profits or dividends reviewed and
approved to be declared for distribution
According to the Profit Distribution Plan for 2025 and Authorization of Interim Dividend for 2026
reviewed and approved at the 15th meeting of the 6th session of Board of Directors held by the
Company on March 30 2026 the Company proposes to distribute cash dividend of RMB10.00 (tax
inclusive) per 10 shares based on the Company’s total share capital (exclusive of shares in the
Company’s special securities account for repurchased shares) registered as at the registration date for the
implementation of dividend distribution. The remaining distributable profits in 2025 will be carried
forward to the following year. This proposal is subject to review and approval by the Company’s 2025
annual meeting of shareholders.
3. Sales return
□ Applicable √ Not applicable
4. Particulars on other post-balance-sheet-date events
□ Applicable √ Not applicable
XVIII. Other Important Issues
1. Correction of previous-period accounting errorsFor details please refer to “Analysis and Explanation from the Company on the Reasons andImpact of the Change of Accounting Policies Accounting Estimates or Correction on SignificantAccounting Errors” under “Major Events”.
2. Significant debt restructuring
□ Applicable √ Not applicable
3. Asset replacement
(1). Non-monetary asset exchange
□ Applicable √ Not applicable
(2). Other asset replacement
□ Applicable √ Not applicable
4. Annuity plan
□ Applicable √ Not applicable
218 / 233Annual Report 2025
5. Discontinued operations
□ Applicable √ Not applicable
6. Segment information
(1). Basis for determining reporting segments and accounting policies
√ Applicable □ Not applicable
According to the Company’s internal organizational structure management requirements and
internal reporting system two reporting segments are identified namely: direct office supplies business
and traditional business. The Company’s reporting segments provide different products or services or
engages in operational activities in different regions. Since each segment requires different technical or
marketing strategies the management of the Company separately manages the operating activities of
each reporting segment and regularly evaluates the operating results of these reporting segments to
determine the allocation of resources to them and the evaluation of their performance.The transfer price between segments is determined on the basis of the actual transaction price and
the expenses indirectly attributable to each segment are grouped according to the actual share of each
segment. Allocation among segments is conducted accordingly. Assets are allocated according to the
operation of the segment and the location of the asset. Segment liabilities include liabilities that can be
attributed to the segment formed by the segment’s operating activities. If the expenses associated with
liabilities shared by multiple operating segments are allocated to these operating segments the jointly
assumed liabilities are also allocated to these operating segments.
(2). Financial information of reporting segments
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Direct office Traditional Inter-segment
Item Total
supplies business business elimination
Revenue from foreign
15038159332.2110025750504.2625063909836.47
transactions
Revenue from
inter-segment 10046967.86 163649443.50 173696411.36
transactions
Income from
investments in
592433.92592433.92
associates and joint
ventures
Credit impairment
-12023878.96-10849006.93-22872885.89
losses
Asset impairment
-778757.53-8592163.70-9370921.23
losses
Depreciation and
34032191.17552890267.30586922458.47
Amortization charges
Total profits (total
451261854.461257940825.57498447.061708704232.97
losses)
Income tax expenses 116613594.33 231045215.82 124611.77 347534198.38
Net profits (net losses) 334648260.13 1026895609.75 373835.29 1361170034.59
Total assets 8264481946.01 9820405853.70 9921068.56 18074966731.15
Total liabilities 5548671922.83 2657084160.93 7786963.26 8197969120.50
(3). If the Company does not have a reporting segment or if it cannot disclose the total assets and
total liabilities of each reporting segment the reason should be explained
□ Applicable √ Not applicable
219 / 233Annual Report 2025
(4). Other descriptions
□ Applicable √ Not applicable
7. Other important transactions and matters that have an impact on investors’ decisions
□ Applicable √ Not applicable
8. Others
□ Applicable √ Not applicable
XIX. Notes on the Main Items of the Parent Company’s Financial Statements
1. Accounts receivable
(1). Disclosure by account age
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end of Carrying balance at the
Account age
the period beginning of the period
Within one year (including one
263688075.98220362762.45
year)
Including: Sub-item within one
year
Within one year 263688075.98 220362762.45
One to two years 37354.88 925241.61
Two to three years 17449.81
Above three years
Three to four years
Four to five years
Above five years
Total 263742880.67 221288004.06
(2). Disclosure by accruing method for bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Carrying balance Bad debt provisions Carrying balance Bad debt provisions
Category
Accruing Carrying Accruing Carrying
Percentage value Percentage Amount Amount percentage Amount Amount percentage value
(%)(%)
(%)(%)
Bad debt
provisions
accrued
separately
Including:
Bad debt
provisions
accrued
263742880.67100.003384042.291.28260358838.38221288004.06100.004316243.191.95216971760.87
according to
the
combination
Including:
Account age
67302123.4825.523384042.295.0363918081.1981698655.7836.924316243.195.2877382412.59
analysis
220 / 233Annual Report 2025
Related
parties in
the scope of
the 196440757.19 74.48 196440757.19 139589348.28 63.08 139589348.28
consolidated
financial
statements
Total 263742880.67 / 3384042.29 / 260358838.38 221288004.06 / 4316243.19 / 216971760.87
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
√ Applicable □ Not applicable
Combination item: Credit risk characteristic combination
Unit: Yuan Currency: RMB
Closing balance
Item Accruing percentage
Carrying balance Bad debt provisions
(%)
Account age analysis 67302123.48 3384042.29 5.03
Related parties in the
scope of the
196440757.19
consolidated financial
statements
Total 263742880.67 3384042.29
Description on bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of accounts receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(3). Particulars on bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Opening Recovere Closing
Category Resold or Other
balance Accrued d or balance
written-off changes
reversed
Account age
4316243.19-932200.903384042.29
analysis
Total 4316243.19 -932200.90 3384042.29
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions
No
221 / 233Annual Report 2025
(4). Particulars on accounts receivable actually written-off in the current period
□ Applicable √ Not applicable
Writing-off of significant accounts receivable
□ Applicable √ Not applicable
Description on writing-off of accounts receivable:
□ Applicable √ Not applicable
(5). Particulars on top five accounts receivable and contract assets in terms of the balance at the
end of the period based on debtors
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Percentage (%)
in the total
Closing Closing balance balance at the Balance of bad
Closing balance
Company balance of of accounts end of the debt provisions
of accounts
name contract receivable and period of at the end of
receivable
assets contract assets accounts the period
receivable and
contract assets
First 78648410.00 78648410.00 29.82
Second 40082272.90 40082272.90 15.20
Third 27559517.15 27559517.15 10.45
Fourth 18012119.77 18012119.77 6.83 900605.99
Fifth 13108881.65 13108881.65 4.97 655444.08
Total 177411201.47 177411201.47 67.27 1556050.07
Other descriptions:
No
Other descriptions:
□ Applicable √ Not applicable
2. Other receivables
Presented by item
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 521438557.39 1089091354.20
Total 521438557.39 1089091354.20
Other descriptions:
□ Applicable √ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not applicable
222 / 233Annual Report 2025
(2). Important overdue interest
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of interest receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on interest receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant interest receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable √ Not applicable
223 / 233Annual Report 2025
(2). Important dividend receivable with the account age over one year
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of dividends receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on dividend receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant dividend receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end Carrying balance at the
Account age
of the period beginning of the period
224 / 233Annual Report 2025
Within one year (including one year) 128749655.62 378367180.81
Including: Sub-item within one year
Within one year 128749655.62 378367180.81
One to two years 104722713.26 200710586.90
Two to three years 97637346.64 202098108.30
Above three years 191205004.21 309119611.93
Three to four years
Four to five years
Above five years
Less: Bad debt provisions -876162.34 -1204133.74
Total 521438557.39 1089091354.20
(2). Particulars on classification by amount nature
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Carrying balance at the end of Carrying balance at the
Amount nature
the period beginning of the period
Personal loans and petty cash 4376097.84 5350793.28
Consolidated balance of
507138799.841071865083.18
related-parties current accounts
Amount paid for materials 993904.71 5390341.29
Consolidated balance of
related-parties current accounts - 2994578.01 3514957.39
provisional input tax
Non-housing deposit and margin 321200.00 261200.00
Housing deposit and margin 3165394.00 3231994.00
Others 3324745.33 681118.80
Total 522314719.73 1090295487.94
(3). Particulars on accruing of bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss
Expected credit for the entire for the entire
Bad debt provisions Total
losses in the duration (no credit duration (credit
next 12 months impairment impairment
occurred) occurred)
Balance as at January 1 2025 1204133.74 1204133.74
Balance as of January 1 2025
in the current period
- Transferred into Phase 2
- Transferred into Phase 3
- Reversed into Phase 2
- Reversed into Phase 1
Accrued in the current period -327971.40 -327971.40
Reserved in the current period
Resold in the current period
Written-off in the current
period
Other Changes
Balance as at December 31
876162.34876162.34
2025
225 / 233Annual Report 2025
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of other receivables arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Amount of bad debt provisions accrued for the current period and the basis for assessing whether the
credit risk of financial instruments has increased significantly:
□ Applicable √ Not applicable
(4). Particulars on bad debt provisions
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Opening Recovere Closing
Category Resold or Other
balance Accrued d or balance
written-off changes
reversed
Account age
1042534.04-324641.40717892.64
analysis
Deposit for
161599.70-3330.00158269.70
housing lease
Total 1204133.74 -327971.40 876162.34
Significant bad debt provision amounts reversed or recovered in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(5). Particulars on other receivables actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant other receivables:
□ Applicable √ Not applicable
Notes to the write-off of other receivables:
□ Applicable √ Not applicable
(6). Particulars on top 5 other receivables in terms of the balance at the end of the period based on
debtors
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
226 / 233Annual Report 2025
Percenta
ge (%)
in the
total
balance Bad debt
at the Account provisions
Company name Closing balance Account age
end of nature closing
the balance
period of
other
receivabl
es
Shanghai M&G
Information Consolidated Within one year:
Technology Co. balance of RMB95.14 millionLtd.（上海晨光 426489904.72 81.65 related-partie Above one year:s current
信息科技有限 RMB331.35 million
accounts
公司）
Consolidated
Within one year:
Axus Stationery balance of
RMB2.44 million
(Shanghai) 60000000.00 11.49 related-partie
Above one year:
Company Ltd. s current
RMB57.56 million
accounts
Jiumu M&G
Store Enterprise Consolidated
Management balance of Within one year:Co. Ltd.（九木 6962431.65 1.33 related-partie RMB6.96 millions current杂物社企业管
accounts理有限公司）
Guangdong
South China Consolidated Within one year:
M&G Stationery balance of RMB3.75 millionCo. Ltd.（广东 4539401.38 0.87 related-partie Above one year:s current
华南晨光文教 RMB0.79 million
accounts用品有限公司）
Shanghai M&G
Jiamei Consolidated
Stationery Co. balance of Within one year:Ltd.（上海晨光 3694539.46 0.71 related-partie RMB3.69 millions current佳美文具有限
accounts
公司）
Total 501686277.21 96.05 / /
(7). Other receivables reported due to centralized management of funds
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
3. Long-term equity investments
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
227 / 233Annual Report 2025
Impai Impai
rment rment
Carrying balance Carrying value Carrying balance Carrying value
provi provi
sions sions
Investment to
1784957222.611784957222.611644957222.611644957222.61
subsidiaries
Investments to
associates and 35606521.84 35606521.84 33578115.08 33578115.08
joint ventures
Total 1820563744.45 1820563744.45 1678535337.69 1678535337.69
(1). Investment to subsidiaries
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Ope Change of the current period
ning
Acc
bala
ruin Closing
nce
g of balance
of
Withd imp of
Opening balance imp Ot Closing balance
Invested company Additional rawn air impairm
(carrying value) air her (carrying value)
investment invest men ent
men s
ment t provisio
t
pro ns
pro
visi
visi
ons
ons
Colipu TechnologiesGroup Co. Ltd.（科力普 505324042.52 505324042.52科技集团股份有限公司）
Shanghai M&G ZhenmeiStationery Co. Ltd（. 上海 13288599.09 13288599.09晨光珍美文具有限公司）
Shanghai M&G
Stationery & Gift Co.（上海晨光文具礼品 199419400.00 199419400.00 Ltd.有限公司）
M&G Life EnterpriseManagement Co. Ltd（. 晨
240000000.00240000000.00
光生活馆企业管理有限
公司）
Shanghai M&G JiameiStationery Co. Ltd（. 上海 30000000.00 30000000.00晨光佳美文具有限公司）
Shanghai M&G
Information Technology
（上海晨光信息 27500000.00 27500000.00 Co. Ltd.科技有限公司）
Shenzhen Erya Creative
and Cultural
Development Co. Ltd. 6339300.00 6339300.00
（深圳尔雅文化创意发展有限公司）
Shanghai M&G OfficeStationery Co. Ltd（. 上海 50000000.00 50000000.00晨光办公用品有限公司）
Axus Stationery
177038110.00177038110.00
(Shanghai) Company Ltd.Shanghai Qizhihaowan
Culture and Creativity
28500000.0028500000.00Co. Ltd.（上海奇只好玩文化创意有限公司）
228 / 233Annual Report 2025
Shanghai Chenxun
Enterprise Management
（上海晨讯企业 235000000.00 235000000.00 Co. Ltd.管理有限公司）
Guangdong South China
Stationery Co. Ltd. (广东 40000000.00 40000000.00
华南文教用品有限公司)
Hubei M&G Central
China InformationTechnology Co. Ltd.（湖 72547771.00 140000000.00 212547771.00北晨光华中信息科技有限公司）
Shanghai M&G Online
Selection Stationery Co.（上海晨光在线甄选 20000000.00 20000000.00 Ltd.文具有限公司）
Total 1644957222.61 140000000.00 1784957222.61
(2). Investments to associates and joint ventures
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Change of the current period
Balance
Investme
Declarat of
nt gains
ion on Accruin impairm
Opening and Adjustmen Other Closing
Investme Additio Withdra distribut g of ent
balance losses t to other equit balance
nt nal wn ion of impairm Othe provisio
(carrying recogniz comprehen y (carrying
unit investm investm cash ent rs ns at the
value) ed under sive chang value)
ent ent dividend provisio end of
the income es
s or ns the
equity
profits period
method
I. Joint venture
Subtotal
II. Associate
Ningbo
Zhongch
en
Equity
Investme
3072623766143.1435972.3292834
nt
1.2193847.98
Partners
hip
(Limited
Partners
hip)
Shanghai
Pen-mak
ing
Technol
ogy
Services 2851883. -173710 2678173.Co. Ltd. 87 .01 86
（上海制笔技术服务有限公
司）
3357811592433.1435972.3560652
Subtotal
5.0892841.84
3357811592433.1435972.3560652
Total
5.0892841.84
(3). Impairment test of long-term equity investments
□ Applicable √ Not applicable
229 / 233Annual Report 2025
Other descriptions:
No
4. Revenue and operating costs
(1). Particulars on revenue and operating costs
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for in the current Amount accounted for in the previous
Item period period
Revenue Costs Revenue Costs
Main operations 3925773362.06 2128754070.75 4170394130.88 2298583148.56
Other operations 225946337.49 172663888.89 209003299.92 162051201.63
Total 4151719699.55 2301417959.64 4379397430.80 2460634350.19
(2). Information on the breakdown of revenue and operating costs
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Total
Classification of contracts
Revenue Operating costs
Types of goods
1. Sales of goods 3925773362.06 2128754070.75
2. Supply chain service 195895293.67 168676464.56
3. Others 10844964.66 2015355.98
Classification by operation territory
1. China 3641605561.20 2009451600.55
2. Other countries 490908059.19 289994290.74
Types of markets or customers
Types of contracts
Classification by the time of goods
transfer
1. Recognized at a specific point
4132513620.392299445891.29
in time
2. Recognized within a specific
time period
Classification by contract term
Classification by sales channels
Total 4132513620.39 2299445891.29
Other descriptions:
√ Applicable □ Not applicable
No
(3). Description on performance obligations
□ Applicable √ Not applicable
(4). Description on allocation to remaining performance obligations
□ Applicable √ Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √ Not applicable
230 / 233Annual Report 2025
Other descriptions:
Details on revenue:
Unit: Yuan Currency: RMB
Amount in the current
Item Amount in the last period
period
Revenue from customer contracts 4132513620.39 4359257641.43
Rental income 19206079.16 20139789.37
Total 4151719699.55 4379397430.80
5. Investment income
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Amount accounted for Amount accounted for
Item
in the current period in the previous period
Long-term equity investment income calculated by
285833333.33
cost method
Long-term equity investment income accounted
592433.92-583369.62
for under the equity method
Investment income from disposal of long-term
equity investment
Investment income from held-for-trading financial
assets during the holding period
Dividend income from other equity instrument
investments during the holding period
Interest income from debt investment during the
holding period
Interest income from other debt investments
during the holding period
Investment income from disposal of
1672749.112592421.97
held-for-trading financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt
investment
Investment income from disposal of other debt
investments
Gains from debt restructuring
Total 2265183.03 287842385.68
Other descriptions:
No
6. Others
□ Applicable √ Not applicable
XX. Supplementary Information
1. Table on details of non-recurring gains and losses of the current period
√ Applicable □ Not applicable
Unit: Yuan Currency: RMB
Item Amount Description
Gains or losses on disposal of non-current assets
4652094.85
(inclusive of impairment allowance write-offs)
231 / 233Annual Report 2025
Government subsidies included in profits and
losses for the current period excluding those that
are closely related to the Company’s normal
business operations and given in accordance with 186963410.61
defined criteria and in compliance with
government policies and have a continuing
impact on the Company’s profits or losses
Gains or losses on fair-value changes in financial
assets and liabilities held by a non-financial
enterprise as well as on disposal of financial
59958649.02
assets and liabilities (exclusive of the effective
portion of hedges that is related to the Company’s
normal business operations)
Reversal of provision for impairment of
receivables which are individually tested for 2298338.54
impairment.Other net non-operating income and expenses
-11760712.53
other than the above items
Minus: Effect of income tax 41525443.98
Effect of minority equity (after tax) 14056975.42
Total 186529361.09
Items unlisted in the Explanatory Announcement on Information Disclosure by Companies Offering
Securities to the Public No. 1: Non-Recurring Profits and Losses are identified as non-recurring profit
and loss items and the items are of a significant amount and non-recurring profit and loss items listed in
the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the
Public No. 1: Non-Recurring Profits and Losses are defined as recurring profits and losses
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
√ Applicable □ Not applicable
Earnings per share
Profits during the Reporting Weighted average
Basic earnings per Diluted earnings per
Period ROE (%)
share share
Net profit attributable to
ordinary shareholders of the 14.56 1.4306 1.4306
Company
Net profit attributable to
ordinary shareholders of the
12.481.22701.2270
Company after deducting
non-recurring gains and losses
3. Difference in the Accounting Information under the PRC Accounting Standards for Business
Enterprise (“PRC GAAP”) and Overseas Accounting Standards
□ Applicable √ Not applicable
4. Others
□ Applicable √ Not applicable
232 / 233Annual Report 2025
Chairman: Chen Huwen
Date of report and submission approved by the Board of Directors: March 30 2026
Revision information
□ Applicable √ Not applicable
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