On March 28, Chenguang ( Shanghai M&G Stationery Inc(603899) . SH) released its annual report for 2021. In 2021, the company achieved an operating revenue of 17.6 billion yuan, a year-on-year increase of 34%; The net profit attributable to the parent company was 1.52 billion yuan, a year-on-year increase of 21%.
The reporter of the daily economic news noted that in terms of the contribution of marginal growth of operating income, the office business of klip contributed the largest increment of operating income to Chenguang. In contrast, although the revenue of the large retail store business (including Jiumu sundry agency) also showed high growth, the net profit of the business still suffered a loss.
In addition, Chenguang shares disclosed that it plans to realize an operating revenue of 20.9 billion yuan in 2022, with a year-on-year increase of 19%.
klip office business contributes the largest revenue increment
From the perspective of business model, in 2021, Chenguang's traditional core business realized an operating revenue of about 8.88 billion yuan, an increase of about 1.3 billion yuan year-on-year; The operating income of kelip office business was about 7.77 billion yuan, with a year-on-year increase of about 2.77 billion yuan; The business of large retail stores realized an operating revenue of about 1.05 billion yuan, an increase of about 400 million yuan year-on-yearp align="center" style="text-align:center;"> Photo source: screenshot of Chenguang's 2021 Annual Report
Chenguang said that in 2021, the company will deeply cultivate traditional channels and focus on improving the quality of single stores. By the end of 2021, Chenguang has 36 primary partners, secondary and tertiary partners and key customers in 1200 cities across the country, and more than 80000 retail terminals using " Shanghai M&G Stationery Inc(603899) " store recruitment.
In 2021, the net profit of klip office business was 240 million yuan, a year-on-year increase of 68%. For klip, Chenguang said that after nearly a decade of development, the office direct sales business has the competitive advantage of being a leading office service provider in the industryp align="center" style="text-align:center;"> Photo source: screenshot of Chenguang's 2021 Annual Report
"In terms of central enterprise customers, they were shortlisted for projects such as national energy group and China General Technology Group; in terms of government customers, they were shortlisted for projects such as Jiangsu provincial government procurement online mall; in terms of financial customers, they were shortlisted for projects such as Agricultural Bank Of China Limited(601288) , China Development bank; in terms of MRO, they won the bid for projects such as Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) group and China nuclear industry group." Chenguang shares said.
It is worth noting that although the operating revenue has increased, the gross profit margin of Chenguang shares decreased in 2021. The gross profit margin of culture, education and office supplies manufacturing and sales was 32.84%, a decrease of 0.47 percentage points compared with the previous year; The gross profit margin of retail industry was 12.74%, a decrease of 1.08 percentage points compared with the previous year.
"The cost increases with the increase of sales. The increase of direct selling costs of other products and offices is mainly due to the rapid development of Jiumu sundries agency and Chenguang kelipu's business and the increase of sales volume." Chenguang shares said.
In addition, the year-on-year increase of other income and the year-on-year decrease of credit impairment loss and asset impairment loss also contributed to the growth of net profit of Chenguang.
retail store business still drags performance
In 2021, Chenguang living hall (including Jiumu sundries Club) achieved an operating revenue of 1.05 billion yuan and a net profit of about - 21 million yuan. Among them, Jiumu sundry agency achieved an operating revenue of 950 million yuan and a net profit of about - 23 million yuan.
As of the end of the reporting period, Chenguang has 523 large retail stores in China, including 60 Chenguang life halls and 463 Jiumu sundry clubs (319 directly operated and 144 franchised).
Photo source: screenshot of Chenguang's 2021 Annual Report
For the retail store business in 2021, Chenguang said that in the face of repeated interference from the epidemic, the business income of retail stores increased and the loss decreased significantly.
In 2015, Chenguang began to explore new businesses, mainly including Chenguang life hall and Chenguang kelipu. According to Chenguang Co., Ltd., Chenguang life hall is the flagship store directly operated by Chenguang Co., Ltd. and a "one-stop" cultural and fashion shopping place of "all categories".
In 2016, Chenguang Co., Ltd. established a new subsidiary, Jiumu sundry agency enterprise management Co., Ltd. Jiumu sundries agency is located in the mode of boutique small department store dominated by shopping mall, covering retail products such as practical home, beautiful life, boutique stationery, educational and entertainment, happy travel, comfortable home textile, sundries storage, fashion digital and imported food.
In response to a survey question from institutional investors, Chenguang Co., Ltd. once said that Chenguang life hall and Jiumu sundries club are both bridgeheads carrying product upgrading and channel upgrading, but their respective missions and positioning are different. The life hall is positioned as channel upgrading and mainly for stock channels; Sundry agency is a new retail model store.
However, compared with the vigorous development of klip, the exploration of large retail stores of Chenguang shares has not yet been profitable. In 2017 and 2018, Chenguang life hall Enterprise Management Co., Ltd. lost 411499 million yuan and 303004 million yuan respectively. From 2019 to 2021, Chenguang living hall (including Jiumu sundries Club) lost 8.0467 million yuan, 502293 million yuan and 210865 million yuan respectively.
Chenguang Co., Ltd. said that in 2021, through store display, marketing promotion and clerk training to improve the operation efficiency of stores, and the analysis and follow-up of the implementation of key retail indicators and operation standards, Jiumu sundries Club continued to improve the activity of its members and has accumulated more than one million registered members.
Looking forward to the future, Chenguang said that it would continue to develop the business of large retail stores, and Jiumu sundries agency would work with the company to increase the sales proportion of high-end products in this channel. In terms of Chenguang life hall, improve the sales proportion of Chenguang brand, improve the operation ability of stores, improve human efficiency, and improve the quality of single stores of stock stores.
