上海晨光文具股份有限公司
SHANGHAI M&G STATIONERY INC.
2020 年度企业社会责任报告
2020 Corporate Social Responsibility Report
About This Report
The Board of Directors of the Company and all its directors guarantee that,
this report does not contain any false information, misleading statement or
material omission, and severally and jointly accept responsibility for the
truthfulness, accuracy and completeness of the contents of this report.
Dear stakeholders, this “Corporate Social Responsibility Report of Shangha i
M&G Stationery Inc. for the Year of 2020” (CSR report) is the third of its kind issued
to the public by M&G Stationery. This report aims to truthfully present the CSR
development and practice of the Company and reveal to our shareholders, employees,
government agencies, customers and consumers, partners, local communities and other
stakeholders of the Company’s CSR activities.
Reporting Period: From 1 January 2020 to 31 December 2020
Reporting Cycle: Reported annually
Scope of Reporting:
This report covers Shanghai M&G Stationery Inc. and its subsidiaries. For the
convenience of expression, they are referred to as “M&G Stationery”, “M&G”, “the
Company”, “we” or “us”, etc. herein.
Basis of Preparation
This report is prepared in accordance with the Guidelines to Report Sustainability
(GRL-Standards) of Global Reporting Initiative (GRI) and Guidelines on Corporate
Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0) by Chinese
Academy of Social Sciences.
Access to the Report
The report is prepared and published in simplified Chinese, and is available in both
hard copy and electronic versions. The latter may be downloaded from the website of
Shanghai Stock Exchange (http://www.sse.com.cn).
Report Assurance
The report was approved by the fifth meeting of the fifth session of the Board of
Directors and the fourth meeting of the fifth session of the Board of Supervisors held
on 26 March 2021.
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.
III
Contents
I. Company Profile..................................................................................................................................................1
(I) Overview ............................................................... 1
(II) Development History ..................................................... 3
(III) Awards in This Year ..................................................... 4
(IV) Operation Performance ................................................... 5
(V) Responsibility of Communication ........................................... 6
II. Environment ........................................................................................................................................................8
(I) Carbon Emission ......................................................... 8
(II) Energy Consumption ..................................................... 8
(III) Clean Energy ........................................................... 9
(IV) “Green” Factory ....................................................... 10
(V) “Green” Products ....................................................... 10
1. Environmentally-friendly materials ......................................................................................... 10
2. Recyclable materials .................................................................................................................... 11
(VI) “Green” Operation ..................................................... 11
(VII) Environmental Protection Actions......................................... 12
III. Society.............................................................................................................................................................. 14
(I) Product Responsibility.................................................... 14
1. Design and R&D........................................................................................................................... 14
2. Manufacturing advantage ........................................................................................................... 14
3. Chemical safety ............................................................................................................................. 15
(II) Stakeholder ............................................................ 18
1. Consumer ........................................................................................................................................ 18
2. Supplier............................................................................................................................................ 19
3. Distribution partner ...................................................................................................................... 21
(III) Human Resources ...................................................... 21
1. Basic rights and interests............................................................................................................. 22
2. Development of talents................................................................................................................ 22
3. Vocational development .............................................................................................................. 24
4. Communication channels............................................................................................................ 24
5. Welfare system............................................................................................................................... 24
6. Work safety..................................................................................................................................... 25
(IV) Charity .............................................................. 27
1. Pandemic containment................................................................................................................. 27
2. Poverty alleviation ........................................................................................................................ 28
3. M&G Rainbow Creative Classroom ........................................................................................ 29
4. Rainbow is Coming ...................................................................................................................... 29
5. Kids of the Stars ............................................................................................................................ 30
IV Governance ..................................................................................................................................................... 32
(I) Corporate Governance .................................................... 32
1. Governance system....................................................................................................................... 32
IV
2. Internal control .............................................................................................................................. 33
(II) Corporate Conduct ...................................................... 34
1. Compliance with laws and regulations - anti-corruption.................................................... 34
2. Tax responsibility .......................................................................................................................... 36
3. Dividend return.............................................................................................................................. 36
4. Investor relations ........................................................................................................................... 37
5. Information disclosure................................................................................................................. 37
V Outlook .............................................................................................................................................................. 39
V
I. Company Profile
(I) Overview
Shanghai M&G Stationery is a comprehensive stationery supplier and an office
supplies service provider. 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 traditional core businesses include designing,
developing, manufacturing and selling writing instruments, student stationery, office
supplies and other products under brands, and it also develops the e-
commerce M&G Technologies; its new businesses mainly comprise of own-operated
retail stores—Jiumu Store and M&G Life, and direct office service platform—M&G
Colipu.
Our mission: Make study and work more joyful and effective
Our values: Sincerity, collaboration, focus, win-win, and consumer centric
Our vision: Become a "world-class M&G"
1
M&G Stationery covers more than 80,000 retail stationery shops nationwide and
has 441 own-operated retail stores including M&G Life and Jiumu Store. The Company
launches thousands of new products every year based on the market demand. Our
products are exported to more than 50 countries and regions and we have partners are
all over the world. The Company has maintained double-digit growth in the past decade.
Its total revenue reached RMB13.14 billion in 2020, increasing 18% year-on-year.
Headquartered in Shanghai, China, the Company operates an industrial park that
covers an area of 350 mu. The park is the home of China Writing Instrument Industria l
Base, China Writing Instrument Center, National Industrial Design Center, and China
Key Laboratory of Light Industry and Writing Instrument Engineering Technology. In
2019, M&G Stationery Laboratory was accredited by China National Accreditatio n
Service for Conformity Assessment (CNAS), with its testing capabilities meeting
global standard.
The Company invests more than RMB100 million in the design and developme nt
of product and technology every year. New products on the production line can be
available in all retail shops across the country in only 7 days. Currently, the Company
has more than 700 patents. M&G Stationery was awarded well recognized industria l
design awards such as the Gold Ideas Medal and Red Star Medal. In 2020, the
Company's anti-breakage automatic pencil won the American IDEA Design Award. The
Company won four major international industrial design awards (German Red Dot
Award, German iF Award, Japanese G-Mark Award, and American IDEA Award).
As a domestic brand favored by Chinese consumers, M&G Stationery is
2
pioneering a path of innovation in Chinese stationery from stationery products towards
those with more cultural and creative elements, transforming from “Made in China” to
“Created in China”, leaping from local brand to international brand, and becoming
"world-class M&G".
(II) Development History
Brought Israeli design brand-Peleg Design to attend CIIE, announced establishment
2020
of Israel office of its global design center;
M&G Stationery acquired Shanghai Axus as its subsidiary;
2019
Brought Italian painting brand-CARIOCA to attend CIIE;
Explored new retail in the industry and started the strategic transformation of “ taking
2017 brand as the core and transforming from stationery to cultural and creative life";
M&G Colipu successfully acquired Office Depot (China);
M&G Stationery officially listed on the Shanghai Stock Exchange A shares (stock code:
2015
603899);
2013 Qingcun Industrial P ark was completed and the largest three-dimensional warehouse
in the stationery industry in China was put into use;
The first “ franchise chain" project was launched in the stationery industry. At the same
time, the Guangming P ark was completed, and China Writing Instrument Center and
2008
China Writing Instrument Industrial Base were established, establishing the Company's
leading position in the stationery industry;
3
Selected as the designated stationery supplier of Boao Forum for Asia and has
2005
provided support for Boao Forum for Asia for more than one decade;
K35, the first press gel pen in China, came out after 180 days of process debugging and
17 process optimization, creating M&G classic products with ingenuity; 2002
M&G settled in Liuli, P udong, with more than 100 employees. It has successively
1999 established mold, injection, printing and assembly workshops, and the production
system has begun to take shape;
The "M&G" trademark was officially launched, establishing the development path of
the brand; cooperated with stationery agents across the country and established 1997
partnerships;
First step in start up the Company in two small bungalows in Hengshan Village,
1989
Gurao Town, Shantou;
(III) Awards in This Year
Description Issued by
Shanghai Brand International
"Shanghai Brand" Certification
Certification Alliance
First Grade Prize for State Science and Technology Progress Award
issued by China National Light Industry Council (R&D and China National Light Industry
application of key technology for manufacturing pen tip and gel pen Council
& ballpoint pen)
First Grade Prize for State Science and Technology Progress Award
China National Light Industry
issued by China National Light Industry Council (development and
Council
industrialization of water-based ballpoint pen with regulator)
Shanghai Contract Credit
Contract Credit Rating Certification (2018-2019, AAA)
Promotion Association
4
Shanghai Enterprise
Top 100 Private Manufacturing Enterprises in Shanghai in 2020 Confederation/Shanghai
(Ranked 9th ) Entrepreneurs Association/Jiefang
Daily
Shanghai Enterprise
Top 100 Manufacturing Enterprises in Shanghai in 2020 (Ranked Confederation/Shanghai
27th ) Entrepreneurs Association/Jiefang
Daily
Shanghai Enterprise
Confederation/Shanghai
Top 100 Private Enterprises in Shanghai in 2020 (Ranked 39th )
Entrepreneurs Association/Jiefang
Daily
Company with Outstanding Contribution to Pandemic Prevention
China Stationery & Sporting Goods
and Control and Work Resumption, by China Stationery & Sporting
Association
Goods Association
Economic Guide for Sustainable
Golden Bee Enterprise Award Development of the Ministry of
Commerce
Charity Brand Project Award China Charity Federation
(IV) Operation Performance
In 2020, the Company reported revenue of RMB13.14 billion, a year-on-year
increase of 18%, and net profit attributable to shareholders of listed company of
RMB1.25 billion, a year-on-year increase of 18%. As of the end of 2020, the Company's
total assets were RMB9.71 billion, a year-on-year increase of 28%; the net assets
attributable to shareholders of listed company were RMB5.19 billion, a year-on-year
increase of 23%. The Company has maintained sound growth and sound asset condition.
Key financial indicators 2020 2019 Year-on-year
increase or
decrease (%)
Operating income (RMB) 13,137,745,727.18 11,141,101,364.44 17.92
Net profit attributable to shareholders
1,255,426,655.27 1,060,083,625.03 18.43
of listed company (RMB)
Total assets (RMB) 9,709,908,436.32 7,565,115,311.74 28.35
Net assets attributable to 5,193,568,712.05 4,201,500,384.99 23.61
5
shareholders of listed company
(RMB)
Basic earnings per share 1.3558 1.1523 17.66
(Yuan/share)
Weighted average ROE (%) 26.91 28.17 -1.26
(V) Responsibility of Communication
The value obtained by M&G Stationery comes from recognition and support of
the stakeholders. The Company has insisted on establishing an effective communica tio n
mechanism to build close contact with various stakeholders, building a sound
communication platform for the stakeholders to conduct more active exchange and
communication with the stakeholders through the Company's official website, officia l
Weibo, official WeChat, shareholders' general meetings and other forms. We listen to
expectations and demands of various stakeholders and incorporate the feedback into the
Company's decision-making process.
By referring to its business strategy, industry standards, and corporate social
responsibility standards at home and abroad, M&G Stationery has identified major
issues of corporate social responsibility that may affect the Company or the
stakeholders. In the future, we hope to conduct annual stakeholder interview to gather
issues of concern from various parties, and to determine the Company's annual major
issues of focus with reference to the laws and regulations, hot social issues and industry
trends. The Company will continue monitoring the appropriateness of the issues and
make timely amendments.
Way of
Stakeholder Issues of concern Expectati on
communication
1. Operating
Site visit Strengthen social responsibility
performance
Consultation and construction, actively cooperate
2. Products and
Government Q&A with the government, and promote
services
Request information local economic development and
3. Social
and assessment construction
responsibility
Shareholder 1. Corporate Periodic/interim The management can strive for the
6
governance report best interests of the shareholders and
2. Operating Performance briefing investors and achieve the
performance General shareholders’ Company's sustainable development
3. Social meeting goals
responsibility
1. Products and
Provide more considerate products
services Satisfaction survey
and services and make the operation
Consumer 2. Brand image Promotions
process more environmentally
3. Social After-sales service
friendly
responsibility
1. Operating with
Maintain a close and solid
integrity
Supplier selection cooperative relationship, practice
Supplier/distribut 2. Supply chain
Dealer training social responsibilities together, and
ion partner management
Feedback achieve sustainable development
3. Products and
goals
Services
1. Legitimate
rights and interests The Company can continue caring
Remuneration and
2. Talent for employees, protecting
Employee benefits
cultivation employees' rights and interests, and
Employee training
3. Career improving employee benefits
development
1. Operating
performance Company official Play a leading role in the industry
Media 2. Brand image website and encourage more peers to
2. Social Press releases shoulder social responsibility
responsibility
1. Operating While driving local development,
performance enhancing communication and
Public services
Community 2. Poverty exchanges with community
Volunteer services
alleviation and residents through holding more
relief community activities
Restrict the use of
1. Energy saving hazardous substances
The Company strictly controls the
and emission Reduce carbon
use of hazardous substances in the
reduction emissions
Environment production and actively assumes the
2. Clean energy Carry out
responsibility of reducing
3. Ecological environmental
greenhouse gas emissions
protection protection publicity
activities
7
II. Environment
(I) Carbon Emission
The Company adhered to the concept of environmentally-friendly and low-carbon
development, actively practiced energy conservation and reduction, and took
environment protection and sustainable development promotion as its inescapable
responsibility.
According to an inspection made by carbon inspection organization in 2020, the
carbon emission of the Company in 2019 was 57,773tons. In 2020, the Company
continued making efforts in cost reduction, efficiency increase, and energy saving
improvement: (1) the photovoltaic power generation in Guangming Park was put into
full use; (2) the photovoltaic power generation in Qingcun Park was started and
connected to the grid in the second half of the year; (3) the waste heat was recovered
from air compressors in Guangming Park; (4) the leakage of compressed air in Qingcun
Park was improved; (5) the energy saving of water pumps was improved. It is expected
to reduce electricity consumption by 5 million kWh throughout the year and reduce
carbon emissions by 3,940tons.
In view of the increased energy consumption caused by growth of the Company's
product, and the impact of the pandemic in the first half of the year, total carbon
emissions of the Company in 2020 decreased by 5% to 55,528tons.
(II) Energy Consumption
In order to implement the deployment of "dual control" of total energy
consumption and intensity of CPC Shanghai Municipal Committee and Shangha i
Municipal People's Government, and to achieve the energy consumption "dual control"
goal in the "13th Five-Year” plan, in accordance with the Circular of Shangha i
Municipal Development & Reform Commission on Printing and Distributing the
Priority Work Arrangements for Energy Conservation and Emission Reduction and
8
Tackling Climate Change in 2020, the control target of Shanghai Municip a l
Commission of Economy and Informatization on total energy consumption and
intensity in 2020 was that the value-added energy consumption per unit of the industry
above the designated scale would be reduced; the increased energy consumption is
expected to be kept below 1.7 million tons of standard coal, preferably below 1.4
million tons.
In 2020, the total annual consumption and intensity control targets of M&G
Stationery are shown as below:
Target of total energy
consumption
Target of energy intensity
(Tons of standard
Company name coal)
Description of Unit of
Target value Target value intensity intensity
indicator indicator
Energy Tons of
SHANGHAI M&G
consumption standard
STATIONERY 17,385 0.051
per unit output coal/RMB10,0
INC.
value 00
(III) Clean Energy
The Company actively promoted clean energy construction. It has successive ly
constructed photovoltaic power generation projects in Guangming Park and Qingcun
Park, which has been fully connected to the grid for power generation with a total
capacity of 8MW. The photovoltaic power generation in 2019 was 4.14 million kWh,
which reduced carbon emissions by 3262t/CO2. The estimated power generation in
2021 is 8 million kWh, which can reduce carbon emissions by about 6300t/CO2. Due
to the large amount of electricity consumption of the Company, the carbon quota system
used the historical emission method. The photovoltaic energy was not enough to offset
the Company's carbon emissions and reduce the carbon emission relatively.
9
(IV) “Green” Factory
In accordance with the Environmental Protection Law of the People's Republic of
China, the Law of the People's Republic of China on the Prevention and Control of
Environmental Pollution by Solid Wastes, the Law of the People's Republic of China
on Energy Conservation and other laws and regulations, the Company upheld the
concept of sustainable development and implemented the policy of protecting the
ecological environment and conserving resources.
The Company attached great importance to environmental protection: the
landscaping rate of the plant was relatively high; the plastic raw granular edges did not
produce solid waste or environmental pollution after going through smashing, re-
granulating and recycling process; the carton leftovers used for packaging were
classified and sold to the local recycling station and then recycled into paper.
The Company strictly prohibited hazardous recycled waste materials during
production, didn’t produce volatile gases that are harmful to human health. Domestic
waste water was handled as required by local government. In daily management, the
Company strengthens the monitoring and handling of "three wastes" and ensures that
they are discharged as per the requirements to reduce the impact on the environment.
(V) “Green” Products
1. Environmentally-friendly materials
Breakthroughs have been made in the R&D and manufacturing of food-grade
watercolor inks, which have greatly improved the safety performance of children’s arts
products and guaranteed the health of the consumers; the domestic lead-free materia ls
were developed to manufacture and process the pens, which ensured the safety of core
materials and made contribution to the environmental protection of China; the nationa l
key research and development plan project, New Environmentally- friendly Materials
for Writing Instrument, is being carried out smoothly and research on a number of sub-
10
topics have been completed.
Due to the increased demand for enhanced environmental friendliness and quality
of pens imposed by overseas nations, pens of enhanced environmental friendliness and
diversified functions are set to be favored by the market. Hence pen manufactur ing
sector will certainly need the rollout of nascent environmentally friendly materials in
making pens. With the progress in research and development of lead-free materials, the
Company is endeavoring to enhance the overall technicality of our pen manufactur ing
sector, which could also translate into profitability and added value of products. In that
case, we will be able to accelerate our speed of transformation from a mass pen
manufacturer to a premium pen manufacturer. With the commercialization of nascent
lead-free materials, the Company will reduce non-environmental friendly raw materia ls
to prevent harm to human health arising from heavy metal as lead, VOC emission will
be reduced, reducing energy consumption while bringing social and ecological benefits.
2. Recyclable materials
The Company advocated longer usage products by using consumables that are
easy to be replaced to reduce waste as well as using the refill that is more durable and
has large capacity.
In recent years, the recycling of waste products has increasingly attracted the
concern of the government and all sectors of the community. The promulga ted
applicable laws and regulations have set higher requirements for recycling. A quality
division team of the Company is set up to recycle the waste products according to the
prescribed process.
(VI) “Green” Operation
The Company’s centers and departments of perform their duties to implement the
idea of environmentally-friendly operation. The Production Center is responsible for
management of continuous energy conservation and reduction, clean production, and
11
environmental protection, to maximize conservation of natural resources. The R&D
Center is responsible for research and promotion of new energy conservation processes
and technologies. The Equipment Engineering Department is responsible for
supervision and management of energy use and the statistics on energy data to help
factories to make improvement. Equipment Engineering Department proposes energy
conservation and emission reduction plans and organizes the implementation of such
plans. The Infrastructure Department is responsible for environmental assessment of
new projects to ensure to satisfy the environmental protection needs of production and
living resources.
In addition, the Company played an active role in advocating environmentally-
friendly office, encouraged employees to develop low-carbon lifestyle from work and
life, took advantage of World Environment Day and other opportunities to organize
environmental protection activities, advocate practices of green lifestyle, and enhance
environmental awareness of employees and the public.
(VII) Environmental Protection Actions
At the end of 2020, M&G Charity Foundation cooperated with Red Cross Society
of China Gansu Branch and Qingsuo Public Welfare Development Center to establish
a haloxylon ammondendron forest in Minqin County, origin of one of China’s four
major deserts. With an initial investment of RMB350,000, all the donations will be used
to plant nearly 900 mu of haloxylon ammondendron in 2021.
Axus Stationery, a subsidiary of M&G, ensured safety and quality, improved
manufacturing process, reduced waste and maximized use of existing resources.
In order to reduce the consumption of satinwood (a 2nd level state protected wood
12
species) for making pencils, Axus Stationery introduced the usage of fast-growing
poplar in producing pencils in 2009. From logging to the cultivation of forest, Axus
Stationery expanded its environment awareness to upstream and downstream industria l
chain . It has thousands of mu of raw material timber forest bases in China.
13
III. Society
(I) Product Responsibility
1. Design and R&D
With its excellent design concept, the Joy-Shaking Pen of M&G Stationery won
the German iF Design Award; M&G’s self-developed automatic tape-cutting holder
won two international awards - the German iF Design Award and the Red Dot Award;
M&G’s anti-breakage automatic pencil won American IDEA Award. The Company was
awarded four well recognized industrial design awards.
The Company advocated environmentally-friendly design and proposed
simplified design and colorless design. Simplified design refers to simplifying parts,
reducing mechanical processes, conserving energy, reducing carbon emissio ns,
colorless design refers to using colorless plastics, avoiding colored printing to the extent
possible, and minimizing the use of toner which is harmful to earth.
2. Manufacturing advantage
The Company has raw material formula and production process with intellectua l
property rights, greatly enhancing the percentage of home-made raw materials and
finished products. The Company was recognized as a national high-tech enterprise
since 2010. The Company hosts the National Industrial Design Center, China Key
14
Laboratory of Light Industry and Writing Instrument Engineering Technology,
Shanghai Writing Instrument Engineering Technology Research Center, and other
national, provincial and ministerial level technology centers. The testing laboratory of
the Company obtained CNAS certification qualification.
The Company benefits from experience of large-scale manufacturing accumula ted
from past years, in-house mold capability, reliable supply chain, sound quality control
system and adoption of various information management systems. The Company has
the capability of large-scale manufacturing with high quality control standard. Its
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, and applies machine vision technology in various key links
to improve the efficiency. The Company sets itself as a model for transforming the
stationery industry towards a leaner manufacturing model.
3. Chemical safety
(1) Safety of raw materials
The Company provides consumers with high-quality products, also takes on social
responsibilities. The Company pays close attention to consumers' health and safety
requirements for products. The Company uses environmentally- friendly materia ls
throughout the product life cycle, ensures products satisfy domestic and foreign
standards on environmental protection and safety. All student stationery produced by
15
the Company meet China's mandatory safety standard, General Requirements for the
Safety of Student Supplies (GB21027-2020), including maximum limit for 8 types of
migratable elements (see Table 1 below for details). In addition, our children's arts
products meet maximum limit requirements for 19 types of migratable elements as set
out in the EU's most advanced environmental protection standard EN71-3 (see Table 2
below for details).
Table 1 Maximum Limit of Migratable Element
Unit: mg per kg
Maximum limit of element
Product name Antimony Arsenic Barium Cadmium Chromium Lead Mercury Selenium
Sb As Ba Cd Cr Pb Hg Se
Artistic oil
painting stick,
crayon,
watercolor paint,
eraser, correction
fluid, correction
tape, correction
paste, correction
pen; watercolor
pen, fountain pen,
ink ballpoint pen,
gel ink ballpoint
60 35 1000 75 60 90 60 500
pen, waterborne
ink ballpoint pen,
marker pen,
whiteboard pen,
highlighter pen,
pencil, printing
ink/ink, lead;
printing, brushing
and painting parts
of student
supplies that are
touchable
Colored clay 10 10 350 15 25 25 10 50
Table 2 Migration Limits of Toy Materials
Element Migration limit
16
Category Ⅰ Category Ⅱ Category Ⅲ
mg/kg mg/kg mg/kg
Aluminum 5625 1406 70000
Antimony 45 11.3 560
Arsenic 3.8 0.9 47
Barium 1500 375 18750
Boron 1200 300 15000
Cadmium 1.3 0.3 17
Trivalent
37.5 9.4 460
chromium
Hexavalent
0.02 0.0005 0.2/0.053
chromium
Cobalt 10.5 2.6 130
Copper 622.5 156 7700
Lead 2.0 0.5 23
Manganese 1200 300 15000
Mercury 7.5 1.9 94
Nickel 75 18.8 930
Selenium 37.5 9.4 460
Strontium 4500 1125 56000
Tin 15000 3750 180000
Organotin 0.9 0.2 12
Zinc 3750 938 46000
The migration limit of hexavalent chromium for Category III toy materials (scratchable
toy materials) has been revised as per Commission Directive EU2018/725. The new
limit (0.053mg/kg) took effect on 18 November 2019. Before such date, the 0.2mg/kg
limit applied.
(2) Supplier management
During the site audit before the introduction of new suppliers, the Company
investigated whether the supplier has obtained environmental assessment procedures,
documents and approvals relating to its pollution source, and checked and confirmed in
approval form.
(3) Safety management
According to the Regulations on the Safety Management of Hazardous Chemica ls
promulgated by the State Council, in the safety management of hazardous chemica ls,
the Company should adhere to the principle of “safety first, prevention- focused, and
comprehensive management” and strengthen and implement the principa l
responsibility of enterprises.
17
The Company’s various departments performed their duties of raw material safety
management. The Technical Center is responsible for the safety list of raw materia ls.
The Quality Control Department is responsible for the safety inspection of raw
materials. The Procurement Center strictly implements quantitative procurement of
chemical hazardous chemicals and designated storage. The Safety Management Office
strictly controls the flow of hazardous chemicals.
(4) Product recall
In order to strengthen management of recall of defective products, elimina te
possible damage caused by defective products, and guarantee the personal and property
safety of consumers, the Company formulated and enforced the Management System
for Product Recall in accordance with the Product Quality Law of the People's Republic
of China and Management Measures for Recall of Defective Consumer Goods and
other laws and regulations.
(II) Stakeholder
1. Consumer
The Company always puts customers first and is committed to providing
customers with better services, enhancing customer service experience, continuo us ly
strengthening service innovation, enriching service channels, and protecting the rights
and interests of the consumers.
(1) Satisfaction survey
Winning customer satisfaction is our relentless pursuit of products and services.
The Company performs satisfaction surveys on service, product quality, operation and
customer loyalty on a regular basis. This helps the Company learn customers’ feedbacks
and improve its service quality. Meanwhile, the Company actively regulates its
behavior around competition, protects consumers’ rights, prevents unfair competitio n
and combats fake and shoddy products.
(2) Product quality
The Company has formulated a series of strict, internal policies on quality control
18
and manufacturing procedure control, including the procurement of raw materia ls,
product manufacturing and after sales service. The Company strictly complies with
national standards and industrial standards in controlling manufacturing procedures. In
the absence of applicable national or industrial standards, the Company will adopt the
internal standards to ensure that product quality meets applicable standards and
continuously improve customers’ experience.
(3) After-sales service
Shanghai Consumer Council has been making efforts to establish cooperation with
enterprises, a complaint mechanism is built to enable consumer disputes to be settled
first. Through the "12315" system, Shanghai Consumer Council sends the complaint
information to the complained enterprises timely, so that the enterprise can know and
handle the complaints in the first time.
To make better use of the mechanism, the Company has developed an after-sales
service system to designate departments and personnel to handle consumer complaints.
Relevant personnel log in to the 12315 complaint handling system daily to check the
Company-related complaint information, contact consumers timely within one working
day after receiving the complaint, record the content of the contact, and try to coordina te
and settle with consumers within 15 working days. If settlement can not be reached,
relevant personnel will patiently communicate with and explain to consumers, trying
best to make the consumers satisfied.
(4) Privacy protection
The Company fully respects the privacy of customers, strengthens the
management and protection of customers' information security to prevent data from
being disclosed, safeguard rights and interest of consumers.
2. Supplier
(1) Collaboration and win-win
With the idea of partnership in its business operation, the Company has strived to
build a high standard supply chain ecosystem.
19
The Company keeps upgrading the management for supply chain, and has
information collaboration, inventory optimization, financial support, quality and order
management, performance optimization to help supply chain partners to be stronger,
improve consistency and operation capability of our supply chain partners.
(2) Fairness and integrity - anti-corruption
The Company has established a procurement system with fairness and integr ity.
The Company held regular supplier meetings, strengthened exchanges and cooperation
with suppliers, and realized the stable development of cooperative relations. The
Company has established and improved relevant systems and strengthened cash
management and financial risk control to ensure the safety of assets and funds, protects
the legitimate rights and interests of suppliers.
In order to enhance sense of integrity of the Company’s personnel, the Company
strictly follows the applicable national laws and regulations to supervise the business
conduct of its personnel, prevent commercial bribery, implement public bidding,
implement transparent procurement, and eliminate improper transactions such as
favoritism, fraud, black-box operations, and commercial bribery to protect the
legitimate interests of the Company and suppliers and maintain a favorable business
environment.
(3) Shared responsibility
The Company requires its suppliers to pass the quality management system (ISO
9001), environmental management system (ISO 14001) and occupational health and
safety management system (ISO 45001) certification, and urges suppliers to enhance
their awareness of social responsibility and make them aware that the implementa tio n
of social responsibility is good for the sound development and long-term interests of
themselves. This encourages suppliers to implement corporate social responsibility
management and improve corporate operating philosophy.
20
3. Distribution partner
(1) Collaboration and win-win
Based on the characteristics of stationery products and the current status of
stationery consumption in China, the Company has established a targeted sales model
that focuses on regional distribution, complemented by direct sales, direct sales in large
stores, KA sales, online sales and overseas distribution, and has taken the lead in the
domestic stationery industry to carry out brand sales management and franchis e
management of large-scale retail shops.
The Company has a strong first-mover advantage and leading advantage with its
wide and deep coverage of its distribution network in stationery industry, and the
efficient management of the distribution system. As of 2020, the Company has 36 tier-
1 (provincial) partners across the country, covering tier-2 and tier-3 partners and key
accounts in 1,200 cities and more than 80,000 retail shops.
(2) Continuous optimization
The Company performs customer satisfaction surveys every six months to identify
the real needs of customers and incorporate them into the Company's service goals.
Based on the feedback and suggestions from the Customer Satisfaction Survey Form
submitted by the customers, we will subdivide the relevant information and make
targeted solutions for different customers to make up for the service deficiencies, meet
customers' personalized service needs, and provide customers with more
comprehensive and better services.
(III) Human Resources
The past achievements depend on the efforts of every M&G employee and the
21
future success requires hard work of more M&G employees. Talents are the most
valuable asset for the future development of the Company. As the Company grows, it
will provide more opportunities for its partners. We advocate values of sincerity,
collaboration, focus, win-win, and customer-centric. We are committed to providing
everyone with opportunities and space for sustainable development and creating ideal
conditions and environment for realizing value of life.
1. Basic rights and interests
The Company has established a complete recruitment mechanism and
remuneration and welfare system in strict accordance with the Labor Law of the
People's Republic of China and other laws and regulations. It respects, protects and
safeguards the basic rights and interests of every employee.
The Company upholds the principle of fairness and justice, recruits employees
based on job requirements, eliminates gender, age, and geographic discrimination. The
Company adheres to the "people-oriented" philosophy and manages labor relations hip
as required by laws. The labor contract signing rate is 100%. At the same time, the
Company offers old-age insurance, medical insurance, work injury insurance,
unemployment insurance, maternity insurance as well as housing provident funds for
its employees in accordance with applicable national and local regulations.
2. Development of talents
M&G Stationery aims to build a world-class team with ethical, dedicated, and
high-quality employees. To support the rapid growth and effective operation, the
Company has built a mechanism for selecting and developing self-motivated and self-
disciplined talents.
The Company provides employees with various forms of training, including but
not limited to the following:
(1) New employee training system
It not only helps new employees to adapt to the new environment and new jobs,
22
but also facilitates the recognition of new employees to M&G Stationery’s corporate
culture and enhances their sense of responsibility and mission.
(2) Professional ability training system
M&G Stationery provides systematic vocational training for production backbone
to improve their professional quality. By nurturing the corporate culture of coaching,
the technical expertise handed down from years of business development can be passed
to less experienced employees, who will in future form integral part of technocrats ’
team boasting excellent professional competence and official recognition.
(3) Management ability training system
M&G Stationery provides a series of management trainings for managers at all
levels to systematically improve their competence. This assists the Company in forging
an executive team boasting combined skill sets in business operation, manage ment and
leadership, who will in future direct the Company in a more institutionalized, orderly
and effective way while reflecting the Company’s culture with a consistent
management style and management philosophy.
23
3. Vocational development
M&G Stationery offers competitive remuneration package to its employees in its
industry, and is also consistent in promoting and facilitating the promotion of those
highly competent employees who match the culture of M&G Stationery and take the
ownership of responsibilities. By establishing multiple channels of vocationa l
development and forging an employees’ team of different skill levels, M&G Stationery
has remained an enabler of outstanding professionally competent employees while
focusing on the development of generic management talents, well-rounded
management talents as well as highly professional technocrats playing a leading role.
4. Communication channels
The Company advocates a culture that is transparent, with clear division of
responsibilities and with active communication. It encourages an equal and unimpeded
dialogue among employees and between employees and their superiors. Employees can
propose reasonable suggestions or opinions to the Company through the channels and
ways such as superior and subordinate interviews, human resource center, the
Company’s suggestion box, opinion survey organized by the Company through contact
information released by the Company.
5. Welfare system
Employee care is the basic guarantee for the sound growth of employees and the
sustainable development of the Company. Through the care of employees, the Company
24
aims at cultivating a more positive attitude of employees, creating a more harmonio us
team atmosphere, enhancing team cohesion, innovation and execution, and promoting
the realization of corporate strategic goals.
(1) Office and entertainment
Cozy and joyful working environment and relaxation facilities are made availab le
to each employee of M&G Stationery. One can find within the Company’s premises
such facilities as neat office buildings, book bars, gym, indoor basketball square,
training classroom, employees’ dormitory, canteen etc. The Company regularly holds
inter-employees recreational activities as sports events, art festivals, weekend parties
etc. for employees to choose according to their personal interests, for a better work and
life balance.
(2) M&G Heart Plan
M&G Rainbow Charity established the M&G Heart Plan to provide employees
with medical subsidies for major illnesses and outstanding scholarships. Any employee
that is eligible can apply for subsidies from the Company and recipients are required to
complete a total of 3 hours of volunteer service in the next year. In 2020, a total of
RMB80,000 in cash was granted under the M&G Heart Plan.
6. Work safety
In order to ensure workplace health and effectively respond to unsolic ited
accidents, the Company has formulated such institutionalized workplace guidelines as
“Control Policies on Workplace Safety”, “Policies on Workplace Safety Related
Training”, “Control Policies on Fire Prevention Practice” and “Precautionary Plans
against Typhoon, Flood and Lightning Strike” etc. Moreover, the Company has taken
25
such initiatives to prevent any potentially hazardous risks from impacting the
workplace safety as including pre-employment orientation on workplace safety,
upgrade of such fire-fighting and fire prevention devices as well as ad hoc or recurring
inspection on workplace safety etc.
In 2020, the safety training organized by the Safety Office covers safety
benchmark training, special operation personnel training, plan drill training, KYT
activity training, heatstroke prevention and flood prevention training, attracting more
than 5,600 participants. The pre-employment orientation on workplace safety provided
by the HR Department and each branch is completed before the new employees are
formally employed. The routine safety training responsible by each branch is carried
out at least twice a month with registration record to cover all front-line employees. In
2020, there were no accidents in connection with workplace safety reported pursuant to
“Ordinance on the Investigation and Reporting of Workplace Safety Related Accidents ”
issued by the State Council.
26
(IV) Charity
M&G Stationery is committed to making joint efforts with governme nts,
communities and non-governmental organizations to boost the economic developme nt
of the business locations, improve the quality of life of residents, continue carrying out
charity and public welfare undertakings, and promote the harmonious development of
the community.
In September 2015, M&G Stationery established the M&G Rainbow Charity
Special Fund. M&G Rainbow Charity has performed a number of public welfare
activities for rural education, such as "Gold Seeds Plan", "Rainbow Creative
Classroom", "Rainbow is Coming Plan", and "Kids of the Stars". As a leader in the
stationery industry, M&G Stationery hopes to spread the concept of kindness to more
children through its influence and believes that in the future, they can also spread the
love and stories and make contributions to the society.
In 2020, the Company donated RMB3 million to establish "Shanghai M&G
Charity Foundation", and hoped to conduct more public welfare undertakings in the
future and better integrate social responsibility into corporate development strategy. In
2020, M&G Stationery donated stationery and cash worth around RMB6 million for
public welfare undertakings.
1. Pandemic containment
Since the beginning of 2020, the whole country experienced a smokeless battle.
Countless heroes have devoted themselves to the front line to protect the health and
safety of the Chinese people. The Company has also endeavored its best to provide
support. The Company's subsidiary, M&G Colipu, moved fast and overcame difficulties
to advance to Wuhan, opened a special line for pandemic prevention materials, gave
priority to providing protective materials to the frontline of pandemic prevention. In
addition, M&G Colipu leveraged its own channel advantages, boosted supplies of
products and transport for epidemic prevention and control. The Company's subsidiar y,
M&G Office also took quick action to shorten the development cycle and launched
27
office pandemic prevention products within two weeks. M&G Rainbow Charity
donated 70,000 masks to Hubei at the start of a new semester, and donated pandemic
prevention kits worthy of RMB400,000 to schools, that could be used by about 10,000
persons.
2. Poverty alleviation
The year 2020 is the last year of poverty alleviation and M&G Rainbow Charity
has not been absent on the road to alleviate poverty. After initial success of the country,
the focus next is on preventing the return to poverty and continue laying emphasis on
rural education and rural revitalization. Poverty alleviation begins after educat ion
improvement. Education is a bridge linking the countryside and the city. Only a sound
education can present children a bright future. Since September 2015, the Gold Seeds
Plan has been launched in 32 poverty-stricken counties in 14 provinces and 100,000
Gold Seeds stationery gift packs worth more than RMB27 million were donated. In the
past five years, we have allocated more than RMB2.5 million to the underprivile ged
teachers and students. Furthermore, we follow the national poverty alleviation strategy,
provide stationery gift packs to rural schools across the country, and pass the concept
of public welfare to partners. Now, there are 11 branches of Rainbow Charity in China
and each branch is led by the general manager of the regional partner, who is
responsible for assisting the local governments and social organizations in public
welfare activities.
(1) Poverty alleviation - Gold Seeds Plan
In 2020, M&G Rainbow Charity donated 9,650 gold seed packs amounting to
RMB2.32 million, covering 10 provinces, benefiting more than 10,000 teachers and
students.
(2) Post-poverty alleviation - Spring Bud Program
At the end of 2020, Shanghai M&G Charity Foundation reached a partnership with
Shanghai Children’s Foundation, donating RMB150,000 as the living subsidies for 100
female college students in Yunnan Province. The Spring Bud Program is a rescue
28
program for out-of-school girls initiated by China Children and Teenagers' Fund. M&G
Stationery responded positively and made a contribution to girls' education in China.
3. M&G Rainbow Creative Classroom
M&G Rainbow Charity found that creativity is the foundation of quality-orie nted
education and reading and art education play an important role in awakening and
shaping children's personality and aesthetic perception. M&G Stationery has rich
resources and experience in cultural and creative fields. Making use of these advantages,
Rainbow Charity has established "M&G Rainbow Creative Classroom". As of 2020, a
total of 30 creative classrooms have been established.
4. Rainbow is Coming
Rainbow Charity is actively working with other like-minded partners to use its
advantages to exert collective influence. The social innovation brought about by
collective influence can benefit several parties. In recent years, Rainbow Charity has
been actively involved in rural education in China, hoping to make quality education
also available for children in remote areas.
(1) Jack Ma Foundation
In 2020, we continued working with the Rural Teachers and Principals Program
initiated by the Jack Ma Foundation to fund rural teachers to carry out teaching
programs for the third consecutive year. In 2020, we donated stationery worth RMB2.15
million to 100 village teachers and 20 village principals to facilitate the teaching of the
rural teachers.
(2) Shenzhen One Foundation
Since 2019, it has reached a partnership with One Foundation to create charitable
29
kits with artistic style. The charitable kit is composed of a variety of daily necessities
and materials to keep children warm during the winter. In 2020, the Company also
provided One Foundation 50,000 boxes of artistic oil painting sticks that were worth
RMB860,000, so that children could be immersed in creative life after their basic living
needs were satisfied.
(3) Tiktok Charity
On the occasion of Teacher's Day in 2020, Rainbow Charity and Tiktok Charity
jointly launched a teacher's day event, giving full play to the advantages of companies
to attract social concern to rural education. During the event, it received more than 2
billion clicks and views in total, effectively using new media to play the power of public
welfare, fulfilling social responsibilities, and manifesting brand power.
5. Kids of the Stars
In 2020, M&G Rainbow Charity continued investing RMB300,000 in cash to
support the creative training for children with autism and organized competitions to
select outstanding works. In 2020, the Company developed four public welfare
products, and the profits from the products were used in the project operation.
Additionally, we also provided bonuses for outstanding works of young authors and
held visits and lectures, in the hope that they can integrate into society. It also helps
create a new public welfare mode of teaching people to fish. Works from Kids of the
Stars were exhibited in major domestic exhibitions.
30
31
IV. Governance
(I) Corporate Governance
1. Governance system
M&G Stationery has been committed to optimizing the Company's interna l
governance structure and enhancing the corporate governance. The Company, in strict
compliance with laws and regulations such as Company Law, Securities Law and Code
of Corporate Governance for Listed Companies, as well as regulatory documents issued
by China Securities Regulatory Commission regarding the governance of listed
companies, and based on its actualities, has established a strict three-board operation
system and a clear decision- making authorization system. Besides, the Company has
strengthened the construction of the internal systems, providing basic system
guarantees for corporate governance, preventing operating risks, and protecting the
legitimate rights and interests of all shareholders.
General shareholders’ meeting
Employment Accountability Election Accountability Election Accountability
Board of Directors
Supervision
Appointment Accountability
Committees of the Board of Directors
Board of Supervisors
External audit
Strategic Committee
Audit Committee
Accountability
Remuneration
and Appraisal Committee
Nomination Committee
Management Accountability Monitoring/guidance Accountability
Internal audit Management Supe rvision
Review Review Management/monitoring Accountability
Business activities
32
In 2020, the Company held 6 general meetings of the Board of Directors, 5
meetings of Board of Supervisors and 2 meetings of shareholders. The general
shareholders’ meeting, Board of Directors, Board of Supervisors, the management as
well as independent directors perform functions in a regulative manner. By virtue of the
strict segregation of powers and duties as well as the inter-collaboration amongst
authority body, decision-making body, supervisory body and executive body, the
general policies of the Company is very effective in preventing the abuse of power.
The Board of Directors of the Company consists of 7 directors, including 3
independent directors. The independent directors of the Company, in compliance with
“Rules on the Functioning of the Board of Directors”, “Guidelines on the Performance
of Duties by Independent Directors” and other applicable regulations, have exercised
discretionary review over the deliberation and decision making procedures regarding
the appointment of Company officer(s) and related party transactions etc. and expressed
their independent professional opinions. They have effectively fulfilled their duties,
ensuring the Company operating in a regulative manner and gaining quick growth.
Subordinated to the Board of Directors, the Strategy Committee, Audit Committee,
Remuneration and Appraisal Committee and Nomination Committee perform their
respective functions in strict compliance with respective implementing rules. In 2020,
the Audit Committee convened 5 working meetings, the Nomination Committee 2
working meetings, the Strategy Committee 1 working meeting, and the Remunera tio n
and Appraisal Committee 1 working meeting, giving full play to its professional role in
promoting the business management and standardized operations of the Company.
2. Internal control
The Board of Directors of the Company has established sound and effective
internal control system in compliance with “General Guidelines on Enterprise Internal
Control System” and its interpretations as well as other regulatory requireme nts
governing internal control, with the Board of Supervisors overseeing the establishme nt
and implementation of internal control system by the Board of Directors. The
33
management shall be responsible for directing and coordinating the day-to-day running
of the Company. The Company has established sound and complete internal control
policies and procedures which give detailed specification on such issues as signific a nt
business decisions at corporate level, investing and/or financing activities, related
parties transactions, assets management as well as approval process, limits of approving
authority and pertinent responsibilities pertaining to payments to third parties and
expense reimbursement.
Meanwhile, instructed by the Audit Committee subordinated to the Board of
Directors, the Audit Department of the Company has conducted independent audit and
appraised on the effectiveness and efficiency of the design and implementation of
internal control system. In 2020, the Company's internal control system has been
basically sound and no defects or abnormalities that have significant impacts on
corporate governance, operation management and development have been found.
The Company has focused on the construction of internal management risks and
internal control system, continuously optimized and improved internal control business
processes and concerned supporting systems, continuously improved the interna l
control environment, strengthened training and publicity, to enhance the awareness of
risk and risk control of the personnel at all levels, including the manageme nt.
Meanwhile, the Company has improved the efficiency of risk management audit and
emphasized the substantive elimination or reduction of risks so as to avoid the
recurrence of internal control defects. In addition, the Company has made efforts to
fundamentally solve problems by virtue of IT means or process improveme nt,
ultimately improving the internal control management.
(II) Corporate Conduct
1. Compliance with laws and regulations - anti-corruption
Legal compliance is fundamental to business operation. M&G Stationery highly
emphasizes risks management during operation and continuously promotes policy
establishment and culture building for compliance to ensure its stable operation. The
34
Company organized relevant personnel from functional departments to participate in
compliance training from time to time. In 2020, 13 legal and regulatory trainings
including advertising compliance training, product labeling compliance training, and
intellectual property compliance training were provided.
In addition to relevant training, the Company has established a sound anti-fraud
system and set up a dedicated telephone line and email to encourage reporting fraud.
On the prominent positions of M&G Cloud Integration Platform and OA, the Company
has placed links to publicize the ways to report fraud. The Company produces anti-
fraud publicity posters on a regular basis, which are posted up in the areas with large
flow of people in the Company and in each branch factory. The posters are checked
regularly. In case of any loss, additional posters will be posted up.
The Company has signed the Procurement Integrity Agreement with its employees,
external companies, and all annual suppliers, which also covers the way of reporting.
Any employees and external interested parties with direct or indirect business
connection with the Company may whistle-blow any actual or suspected fraudule nt
behavior conducted by the Company and its employees by means of whistle blowing
hot-lines or email etc. Furthermore, the Company promotes anti-fraud to all employees
and suppliers by means of WeChat official account platform and corporate WeChat
platform of the Company.
35
2. Tax responsibility
Taxation compliance has always been considered by the Company as basic
requirement of performing social responsibility and reciprocating local community. The
Company has, in strict compliance with applicable taxation laws and bylaws, performed
its legal obligation of timely and full settlement of tax liabilities arising from bona fide
business activities. In 2020, the Company paid about RMB700 million tax as required
by laws. According to the 2020 tax payment credit evaluation results of the tax service,
the Company's tax credit in 2019 was rated as Level A.
3. Dividend return
Emphasizing reasonable returns to our investors, the Company maintains ongoing
and stable dividends policies to fully safeguard the benefit of minor investors. Pursuant
to “Notice Regarding Further Implementation of Cash Dividend Distribution by Listed
Companies” and “Regulatory Guidance No.3 of Listed Companies — Cash Divide nd
Distribution of Listed Companies” issued by the China Securities Regulator y
Commission, the Company has formulated a “three-year dividend distribution plan
(from 2020 to 2022)”. If the Company satisfies the conditions for cash dividends,
priority should be given to profit distribution by means of cash dividends. During the
recent three years, the cash dividends have increased year by year, accounting for over
30% of net profit attributable to the ordinary shareholders of the listed company in the
consolidated financial statements, which ensured that the investors share the business
results.
Net profit attributable Percentage of the net
Amount of
Year for Amount of cash to the ordinary profit attributable to the
dividends
dividend dividends shareholders of the ordinary shareholders of
distributed per
distributio (RMB) listed company in the the listed company in the
10 shares (RMB)
n (inclusive of tax) consolidated financial consolidated financial
(inclusive of tax)
statements for the year statements (%)
36
(RMB)
2020 5 463,713,800 1,255,426,655.26 36.94
2019 4 368,000,000 1,060,083,625.03 34.71
2018 3 276,000,000 806,847,308.41 34.21
4. Investor relations
On 1 March 2020, the new Securities Law was formally enforced, providing
greater protection for investors. It is self-evident that strengthening investor protection
is of great significance to the long-term stable and sound development of the capital
market. How to improve the initiative and consciousness of all market participants for
investor protection is the key to further improve the investor protection in the market.
For listed companies, investor relationship management is not only essential to
strengthen investor protection, but also important to continuously improve the investor
protection, form a benign interaction with investors and maximize the overall interests
of the Company.
In 2020, the Company held annual performance briefings to communicate with
investors through offline, online, telephone and other ways to answer the investors ’
questions, and regularly publish them through SSE E-Interaction. All queries raised by
investors via Internet platform were appropriately replied. Moreover, the Company has,
in consecutive years, held public reception conferences to deliver answers to questions
concerned by the investors for safeguarding the interests of Company’s shareholders as
a whole.
5. Information disclosure
The Company, in accordance with the Rules Governing the Listing of Stocks on
Shanghai Stock Exchange, the Administrative Measures for the Disclosure of
Information of Listed Companies and other laws and regulations, has improved the
Company's information disclosure management system and strictly implemented the
relevant regulations on information disclosure, guaranteeing the authenticity, accuracy,
37
completeness, timeliness and fairness of the Company's information disclosure. In
addition, the Company also actively cooperated with the securities regulator y
authorities of China to further strengthen the Company's information disclosure through
system construction, comprehensively elevated the quality of information disclosure,
and enhanced the transparency of information disclosure, contributing to the
effectiveness of the whole capital market.
In 2020, 40 interim announcements and 4 regular announcements were made. We
have registered the insider information relating to major issues and promptly filed,
therefore eliminating any insider trading and ensuring that all the investors can access
the information of the Company equally. The Company's information disclosure in
2019-2020 was rated by the Shanghai Stock Exchange as Grade A.
38
V. Outlook
With the economic development of China, residents' income has increased rapidly,
the middle-income population has continuously expanded, and consumption upgrad ing.
Consumers have raised higher requirements for products and services, and attached
more importance to quality and famous brands, presenting personalized, diversified and
high-end consumption.
Facing consumption upgrade and the change in demand among the young
generation, M&G Stationery will embrace these challenges, upgrade its branding,
products and channels, as well as maintain momentum for high-quality growth.
Looking ahead, M&G Stationery will, as always, focus on premium quality and pursue
constant innovation in response to the changing demand of consumers. The Company
will also develop itself into a well recognized brand with global competitivene ss and
boost the healthy and sustainable development in the industry, helping a sustainable and
high-quality growth in China.
The year 2020 marks an extraordinary year. Everyone faced a number of
challenges. M&G Stationery remained true to our original aspiration and kept our
mission firmly in mind and strove to contribute to the society. The pandemic may slow
down the pace of society, but will not stop it. In 2021, M&G Stationery will continue
remaining true to our original aspiration and pressing forward. With its unique
advantages in the stationery industry, M&G Stationery will continue to assume social
responsibilities, fulfill corporate responsibilities, and continue to make contributions to
education, charity, poverty alleviation, and development of rural education in China.
39
