Shanghai M&G Stationery Inc. (603899.SH), a comprehensive stationery supplier and office service provider, held its third-quarter earnings conference on November 10. The company’s board secretary Bai Kai noted a shift in consumer demand from "practicality" to "emotional value," emphasizing that younger consumers are increasingly seeking emotional resonance and psychological satisfaction through their purchases. This trend is reflected in the growing popularity of derivative products, such as those inspired by anime culture and creative peripherals.
According to the financial report, Shanghai M&G Stationery Inc. recorded revenue of RMB 17.327 billion in the first three quarters of 2025, a year-on-year increase of 1.25%. However, net profit attributable to shareholders declined by 7.18% to RMB 948 million. In the third quarter alone, revenue rose 7.52% to RMB 6.519 billion, while net profit edged up 0.63% to RMB 391 million. The company’s traditional core business revenue fell 4% year-on-year after consolidation adjustments, while new business revenue grew 16%.
Headquartered in Shanghai and listed on the Shanghai Stock Exchange in 2015, Shanghai M&G Stationery Inc. operates two major retail store formats: Nine Woods and M&G Life. Nine Woods targets quality-conscious female consumers aged 15 to 29, offering stationery, creative products, educational toys, and household items. M&G Life primarily serves students aged 8 to 15, focusing on stationery. As of September, the company had over 870 large retail stores nationwide, along with nearly 70,000 retail outlets using the "M&G Stationery" brand.
The company’s subsidiary, Kelipu Technology Group, provides cost-effective one-stop procurement services for governments, enterprises, and Fortune 500 companies, supplying office paper, stationery, consumables, and equipment. Kelipu contributed over half of the company’s total revenue in the first three quarters, with revenue reaching RMB 9.69 billion, up 5.83% year-on-year. In Q3 alone, Kelipu’s revenue grew 17%, driven by normalized bulk procurement and successful new client acquisitions.
M&G Life (including Nine Woods) reported revenue of RMB 1.194 billion, up 6.85% year-on-year, with Nine Woods alone generating RMB 1.154 billion, a 9.22% increase. Meanwhile, M&G Technology’s revenue rose 9.66% to RMB 967 million. Bai Kai highlighted that Nine Woods has seen increased investment and sales share in IP-enabled products, with collaborations boosting brand influence and customer loyalty.
By product category, office direct sales (Kelipu) remained the primary growth driver, with revenue up 5.83% to RMB 9.691 billion. However, the three core segments—writing instruments, student stationery, and office supplies—all experienced declines. Writing instrument revenue fell 1.52% to RMB 1.991 billion, student stationery dropped 6.51% to RMB 2.578 billion, and office supplies declined 6.84% to RMB 2.299 billion. Other products grew 9.26% to RMB 729 million.
Notably, office direct sales had the lowest gross margin at 6.78%, down 0.34 percentage points year-on-year, while writing instruments boasted the highest margin at 44.12%, up 2.03 percentage points. The company attributed Kelipu’s margin contraction to policy-driven bidding price pressures and shifts in business structure.
As of November 10, Shanghai M&G Stationery Inc.’s shares closed up 2.29% at RMB 29.05, with a market capitalization of RMB 26.754 billion.
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