上海晨光文具股份有限公司
SHANGHAI M&G STATIONERY INC.
2019年度企业社会责任报告
2019 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 Shanghai M&G
Stationery Inc. for the Year of 2019” (CSR report) is the second annual CSR openly
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 2019 to 31 December 2019
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 National Standards on “Social Responsibility
Report Preparation Guidelines” (GB/T 36001-2015), “Guidelines on Corporate Social
Responsibility Reporting for Chinese Enterprises”(CASS-CSR 3.0) as promulgated by
the Academy of Social Science of China and “Guidelines to Report Sustainability” (G4)
of Global Reporting Initiative (GRI).
Access to the Report
The report is prepared and published in simplified Chinese, and is available in both
hardcopy 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 through the twentieth meeting of the fourth session of the
Board of Directors and the thirteenth meeting of the fourth session of the Board of
Supervisors held on 10 April 2020.
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.
Contents
I. Company Profile ...........................................................................................................................................1
II. Compliance, the Cornerstone of Corporate Governance ...................................................................3
(I) Corporate governance .......................................................................................................................3
(II) Compliance with laws and policies ............................................................................................4
(III) Internal control ...............................................................................................................................5
(IV) Operation performance ................................................................................................................6
(V) Taxation obligation.........................................................................................................................7
(VI) Awards to the Company ...............................................................................................................7III. Focus on Sustained Improvement of Stakeholders’ Satisfaction .............................................. 10
(I) Returns to shareholders ................................................................................................................. 10
(II) Investor relations......................................................................................................................... 11
(III) Information disclosure ............................................................................................................... 11
(IV) Consumer rights protection...................................................................................................... 12IV. Collaboration-Full Collaboration with Partners ................................................................................. 13
(I) Supplier's rights and interests....................................................................................................... 13
(II) Distributor's rights and interests ............................................................................................. 13V. Innovation-development and manufacturing of better products ................................................. 15
(I) Research & development capacity .............................................................................................. 15
(II) Manufacturing capability .......................................................................................................... 16
(III) Quality control ............................................................................................................................. 17
(IV) Testing capability ......................................................................................................................... 19
(V) Workplace safety......................................................................................................................... 20VI. Employee Care- People Oriented, One for All and All for One .................................................. 21
(I) Protection of lawful rights and interests of employees.......................................................... 21
(II) Talent training and development ............................................................................................ 21
(III) Caring for employees and corporate culture........................................................................ 23VII. Sincerity-to Helping the Underprivileged, transmitting Love .................................................... 25VIII. Mutual Benefits-Adhere to Green and Sustainable Development ........................................... 31
(I) Awareness of environmental friendliness.................................................................................. 31
(II) Action for environment protection ......................................................................................... 34IX. Outlook ................................................................................................................................................... 36I. Company Profile
Shanghai M&G Stationery Inc. was incorporated on 18 July 2008 and was listed on
Shanghai Stock Exchange on 27 January 2015 with stock code 603899. As an integrated
stationery products and 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. The traditional core businesses
include designing, developing, manufacturing and selling writing instruments, student
stationery, office supplies and other products of and its brands, while
new businesses mainly focus on developing one-stop office service platform—M&G
Colipu, retail stores—M&G Life Museum and Jiumu Sundries Store, as well as the
Internet and e-commerce platform—M&G Technologies.
With a sound, independent and complete operation system from design and
development of brands and products, procurement of raw materials and accessories,
product manufacturing, supply chain management and marketing network
management to warehouse and logistics, the Company is capable of performing
independent operation of business in the market.
As a highly recognized company in China’s stationery industry, the Company operates
in the following segments including children, students, office employees and lifestyle,
with its extensive and “deep” product lines ranking top in the domestic stationery
industry. For instance, with regard to pen manufacturing particularly, we have
remained first among top 10 pen manufacturers in China’s light industrial sector for
eight consecutive years. During the recent years, stationeries bearing M&G brand can
be seen even on many national high profile conferences such as APEC conferences,
Boao Forum for Asia and Global CEOs’ Conference.
Pursuing the mission of “making study and working more joyful and effective” and
upholding the core value of “sincerity, collaboration, focusing and mutual success”, the
Company has been committed to developing premium stationery products and
sharpening its leading competitive edge in terms of the design and function of
products through its advanced and international design team as well as by integrating
the sources from global creative team and external. Moreover, the Company has,
through effectively integrating of essential resources such as raw materials, technology,
capital, market, talents and creativity from a global perspective, endeavored to
present the whole world the product innovation and brand values of M&G Stationery.
II. Compliance, the Cornerstone of Corporate Governance
(I) Corporate governance
During the Reporting Period, the Company, in strict compliance with laws and
regulations such as Companies 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, has
continuously optimized the corporate governance structure, established sound
internal control system, standardized the business operation and improved the
corporate governance practice, to ensure there are rules and policies to follow and
therefore prevent operation risks and effectively guarantee the legitimate rights and
interests of all shareholders of the Company.
General shareholders’ meeting
Employment Accountability Election Accountability Election Accountability
Board of DirectorsAppointment SupervisionAccountability
Committees of the Board of
DirectorsStrategic CommitteeAudit CommitteeRemuneration and Appraisal
CommitteeNomination Committee
Monitoring/guidance Accountability
Internal audit Management Supervision
Review Management/monitoring AccountabilityReview
Business activities
In 2019, we held 5 board meetings, 4 supervisors' meetings and 2 general shareholders’
meetings. The general shareholders’ meeting, Board of Directors, Board of Supervisors,
3 BoEaxrtderonfaSlAuacpucedoriuvtoinsrtoarbsility MAcacnoaugnetmabeinlitty
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.
Subordinated to the Board of Directors, the Strategic Committee, Audit Committee,
Remuneration and Appraisal Committee and Nomination Committee perform their
respective functions in strict compliance with respective implementing rules. In 2019,
5 meetings were held by the Audit Committee, 1 meeting by the Strategic Committee
and 1 meeting by the Remuneration and Appraisal Committee. With their professional
expertise, all these committees have played positive roles in improving the business
operation and promoting best practice.
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), the use of the raised funds 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.
(II) Compliance with laws and policies
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. In
2019, the Company held 9 training sessions for legal compliance, including 3 sessions
related to compliance in advertising activities, 1 session for employment contracts, 4
sessions for intellectual property and 1 session for barcodes management.
In addition to relevant workplace training, the Company has established sound anti-
fraud policies and encourages whistle blowing on any fraud. The Company has entered
into “Procurement Integrity Agreement” with all suppliers during the year. Hyperlinks
for whistle-blowing on any frauds are available at the obvious place on the M&G Cloud
integration platform and OA information system. The Company makes posters to
promote anti-fraud on a regular basis. Generally, the posters are publicized at a place
with large people flow in the Company as well as in each branch. After putting up, we
usually have a regular checking for the situation of the poster. If missing, we will
replace it with a new one. Any employees and external interested parties with direct
or indirect business connection with the Company may whistle-blow any actual or
suspected fraudulent behavior conducted by the Company and its employees by
means of whistle blowing hot-lines, email, correspondence 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.
(III) 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 requirements governing
internal control, with the Board of Supervisors overseeing the establishment and
implementation of internal control system by the Board of Directors. The 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 significant 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. There was no significant internal control deficiency detected
during the year of 2019. The Company, upon the detection of other deficiencies
through internal audit work, proactively analyzes the underlying reasons for
deficiencies and works out correction plans in which responsible employees and
deadlines for correcting deficiencies shall be specified for prompt follow-up and
monitoring on the correction, therefore ensuring the effectiveness of the internal
control system. Moreover, based upon the above, the Company continuously improves
the internal control environment through sustained optimization of internal control
processes and pertinent supporting system. The Company continuously promotes the
management team's awareness in compliance via various means to further ensure the
effective implementation of internal control system and processes. The Company fully
discharged its social responsibilities while maintaining sound business operation in
compliance with laws and regulations.
(IV) Operation performance
In 2019, the Company recorded an operation revenue of RMB11,141,101,400,
representing an increase of 30.53% as compared to the corresponding period of last
year. The net profit attributable to shareholders of the listed Company amounted to
RMB1,060,083,600, representing an increase of 31.39% as compared to the
corresponding period of last year, while net profit attributable to shareholders of the
listed company after deducting non-recurring profit and loss amounted to
RMB1,005,188,000, representing an increase of 34.13% as compared to the
corresponding period of last year.
As at the end of 2019, total asset of the Company amounted to RMB7,565,115,300,
representing an increase of 33.25% as compared to the corresponding period of last
year. The net asset attributable to shareholders of the listed company amounted to
RMB4,201,500,400, representing an increase of 23.18% as compared to the
corresponding period of last year. The Company has maintained healthy and rapid
growth with sound operation in asset.
Keyfinancialindicators 2019 2018 Year-on-yearincreaseor
decrease inthecurrentperiod
(%)
Basic earnings per share 1.1523 0.8770 31.39
(Yuan/share)
Basic earnings per share, net of 1.0926 0.8146 34.13
non-recurring gains and losses
(Yuan/share)
Weighted averageROE(%) 28.17 26.16 Increaseof2.01percentage
points
Weighted averageROE,netofnon- 26.71 24.30 Increaseof2.41percentage
recurring gainsandlosses(%) points
(V) Taxation obligation
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 2019, the total tax payment amounted to RMB676
million in compliance with applicable taxation laws and its tax credit rating was Grade
A.
(VI) Awards to the Company
Number Description Issuedby
1 Modelcorporateforsafetyoperationfor2018 Political and Legal Affairs
Sub-Commission to CPC
Committee inShanghai
2 Fortune top one hundred entities within Fengxian People’s Government of
District ofShanghaifortheyearof2018 FengxianDistrictofShanghai
3 Title of “OutstandingEmployment Enabler” of Qingcun CPC Committee of Qingcun
Town fortheyearof2018 Town of Fengxian District of
Shanghai/People’s
Government of Qingcun
Town, Fengxian District of
Shanghai
4 Title of “Top Ten Taxpayer in Terms of Average Tax CPC Committee of Qingcun
Amounts perMu”ofQingcunTownfortheyearof2018 Town of Fengxian District of
Shanghai/People’s
Government of Qingcun
Town, Fengxian District of
Shanghai
5 Title of “Top Ten Taxpayer in Terms of Total Tax CPC Committee of Qingcun
Amounts” ofQingcunTownfortheyearof2018 Town of Fengxian District of
Shanghai/People’s
Government of Qingcun
Town, Fengxian District of
Shanghai
6 Titleof“SocialCharityAward”ofQingcunTownforthe CPC Committee of Qingcun
year of2018 Town of Fengxian District of
Shanghai/People’s
Government of Qingcun
Town, Fengxian District of
Shanghai
7 Title of “Extraordinary Innovation Award” of Qingcun CPC Committee of Qingcun
Town fortheyearof2018 Town of Fengxian District of
Shanghai/People’s
Government of Qingcun
Town, Fengxian District of
Shanghai
8 The Second Prize for State Science and Technology China NationalLightIndustry
Progress Award issuedbyChinaNationalLightIndustry Council
Council fortheyearof2018
9 The Third Prize for State Science and Technology China NationalLightIndustry
Progress Award issuedbyChinaNationalLightIndustry Council
Council for the year of 2018 (in connection with the
development and commercialization of mechanical
pencils)
10 ToponehundredenterprisesinChina’slightindustry China NationalLightIndustry
Council
11 Documented into the book of “Finding the Invisible The People’s Publishing
Champion among Chinese Manufacturers” (Shanghai House Liberal Arts
volume) Division/Shanghai Municipal
Commission of Economyand
Informatization
12 Toptenenterpriseswithinthesub-sectorofculturaland China NationalLightIndustry
education suppliespertainingtolightindustrysectorin Council/China Stationery &
China SportingGoodsAssociation
13 ToptenpenmanufacturersinlightindustryofChina China NationalLightIndustry
Council/China Writing
Instrument Association
14 The Gold Medal for China International Stationery China Stationery & Sporting
Exhibition (CISE) within China’s cultural and education GoodsAssociation
sub-sector fortheyearof2019
III. Focus on Sustained Improvement of Stakeholders’
Satisfaction
(I) Returns to shareholders
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 Dividend
Distribution of Listed Companies” issued by the China Securities Regulatory
Commission, the Company has formulated a “three-year dividend distribution plan
(From 2017 to 2019)”. 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. During the recent
three years, the cash dividends paid by the Company have accounted for over 34% of
net profit attributable to the ordinary shareholders of the listed company in the
consolidated financial statements, which ensured the investors sharing the business
results.
Netprofitattributable Percentageofthenet
Amountof totheordinary profitattributabletothe
Yearfor dividends Amountofcash shareholdersofthe ordinaryshareholdersof
dividend distributedper dividends(RMB) listedcompanyinthe thelistedcompanyinthe
distribution 10shares(RMB) (inclusiveoftax) consolidatedfinancial consolidatedfinancial
(inclusiveoftax) statementsfortheyear statements(%)
(RMB)
2019 4 368,000,000 1,060,083,625.03 34.71
2018 3 276,000,000 806,847,308.41 34.21
2017 2.5 230,000,000 634,040,991.46 36.28
(II) Investor relations
Investor relations are vital to a public listing company. Firstly, a listed company usually
actively manages the relations with investors through ongoing communication of
information to investors, which allows the investors to keep up with the development
of the Company and coordinate with and support its development. Secondly, proactive
investor relations management may, to the greatest extent, avoid the undervaluation
of the share price of a listed company and reflect its true value in the market. Last but
not least, proactive investors relations management may help to improve the goodwill
of a listed company and build trust with the investors, thus facilitating the business
development.
In 2019, the Company cooperated with institutional investors' survey, including
through on-site manner, telephone conferences and WeChat Group, on a regular basis.
The Company has filed with Shanghai Stock Exchange as required and publicized at SSE
E-Interaction. The Company each year holds two survey reception sessions, during
which the management usually answer queries relating to the market in order to
enhance transparency and creditability of the Company. All queries raised by
shareholders 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.
(III) Information disclosure
The Company has, pursuant to “Rules Governing the Listing of Stocks on Shanghai
Stock Exchange” and other relevant regulatory requirements, actively discharged its
obligation of disclosures, promptly disclosing relevant information fairly and ensuring
the correctness and completeness of the disclosed information. Any significant events
and resolutions shall be promptly released by the Company, and disclosed at the
designated press media, including “China Securities Journal”, “Shanghai Securities
News”, and “Securities Times”.
In 2019, 31 interim announcements were released and 4 regular announcements were
officially released in professional due care. We regularly report the insider registration
and promptly file, therefore eliminating any insider trading and ensuring that all the
investors can access the information of the Company equally. The Company was valued
as “A” level in terms of disclosure of company information during 2018 and 2019.
(IV) Consumer rights protection
The Company has formulated a series of strict, internal policies on quality control and
manufacturing procedure control, including the procurement of raw materials,
product manufacturing as well as after sales service. Furthermore, the Company
strictly complies with national standards and/or 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 the quality of
the product can meet applicable standards and continuously improve customers’
experience. Through pre-sale market research and guided by customer orientation
policy, we follow up the demands of customers to understand their requirements on
the products and thus improve customer satisfaction. Meanwhile, the Company
actively regulates its behavior when competing with its competitors so as to protect
the consumers’ rights and interests while preventing unfair competition and
combating fake and shoddy products.
In order to improve its consumer services, the Company has formulated related
procedures, including (1) appraisal for customer satisfaction procedures whereby pre-
defined and effective appraisal methods are employed to identify the extent of
customers’ satisfaction and evaluate the performance of quality control system, which
shall be subject to subsequent improvement based upon the result of appraisal; (2)
Procedures of monitoring the responsiveness to customer needs whereby any
complaints filed by customers can be effectively controlled to eliminate recurring
troubles and cater for customers’ needs.
IV. Collaboration-Full Collaboration with Partners
(I) Supplier's rights and interests
By taking advantage of unique supply chain, the Company can act quickly to the
changing market in every link, including data collection, R&D and product design,
procurement, manufacturing and distribution. The Company was the first in the
industry to introduce a scientific supplier evaluation and grading system and to
establish a professional supplier management team as well as SQE team, with a view
to constantly boosting suppliers’ performance and developing strategic partnership.
The Company maintains long-term partnership with suppliers by respecting their
lawful rights and interests as well as preserving their intellectual property, confidential
and proprietary information. Moreover, the Company has continuously optimized the
procurement process and system and implemented fair and unbiased supplier
appraisal system to nurture a positive business environment for suppliers. Last but not
least, the Company has appropriately performed its contractual obligations in order
not to prejudice the lawful rights and interests of suppliers. In order to prevent
commercial bribery and other forms of unfair competition in part with the suppliers,
the Company has entered into “framework agreement on the transparency to
preserve financial probity during procurement cycle” with suppliers whereby the
lawful rights and interests of both parties are preserved and business partnership
relations are not prejudiced.
(II) Distributor's rights and interests
The Company has, through years of research and practice in establishing marketing
channels, set up a distinct marketing regime named as “M&G partner pyramid style
marketing”. By taking advantage of powerful influence of M&G brand, extensive
stationery product lines, ongoing training of business management mode as well as
the unique system of regional exclusive dealership, the Company has further
strengthened business partnership with distributors of all tiers.
By adhering to the core value of “top-down input of resources” and “top-down sharing
of operating profit”, M&G Stationery has cemented a stable business ecosystem
whereby both distributors and M&G Stationery can achieve win-win outcome.
“Top-down input of resources” shall refer to the business mode whereby distributors
of each tier shall, under the umbrella of the centralized marketing system of the
Company and within the scope of their responsible regions, be responsible for the
administering of the distributors of lower tier, expansion and maintenance of end
marketing channels, as well as investing on manpower, capital, hard and software etc.
In that case, M&G has dramatically reinforced the control over and penetration into
marketing channels. Moreover, through centralized training, implementation of
appropriate control mechanism, KPI management, establishment of corporate culture,
standard marketing procedures, M&G Stationery has forged a very competent and
high-performing sales team.
“Top-down sharing of operating profit” shall refer to the business mode whereby
business partners of each tier can earn all guaranteed operating profits under the
mechanism of uniform pricing strategy channeled down from the Company. In that
case, distributors of all tiers are motivated to develop the markets within the scope of
their authority and responsibilities.
As at the end of 2019, the Company has 35 tier-one distributor partners (provincial
level), approximately 1,200 tier-two and tier-three distributor partners, covering over
85,000 retail stationery shops.
V. Innovation-Development and Manufacturing of better
products
(I) Research & development capacity
The Company has developed “entire design system” covering the whole process
ranging from consumption value design, product design, product mold development
to brand image design, and adopted trend-, theme- and experience-oriented
development model to develop new products from all categories based on consumer
insight.
Boasting a powerful research lab subordinated to technology center, the Company has
taken the lead in tackling various technical difficulties, including those incorporated in
the “thirteenth five-year plan” project. Meanwhile, M&G industrial park is also the
home to China writing instrument industry base, China writing instrument center,
national industry design center and China key laboratory of light industry and writing
instrument engineering technology.
The Company each year pours into approximately RMB 100 million in the design and
R&D of new products and technology currently possessing over 700 patents. M&G
Stationery has been awarded with such heavyweight product design medals as Gold
Ideas Medal and Red Star Medal. In 2019, M&G Stationery was awarded three
international product design honors, including 2019 German iF Product Design Award
and Good Design Award (G-Mark) awarded to the design of “Enjoy Writing” gel pen
and German Red Point Medal awarded to metal bookmark bearing quintessence of
Chinese culture.
(II) Manufacturing capability
The Company uses the brand manufacturing model that combines sales-based
production, independent production and OEM outsourcing production, develops
independent systems for raw material procurement, as well as product manufacturing
and selling, and has established its brands in the market with advantages of the whole
industry chain in designing, researching and developing, manufacturing and selling
stationery.
With large-scale manufacturing experience accumulated over the past few years,
independent mold research and development capability, stable supply chain system,
sound quality control system and adoption of several information management
systems, the Company has reached sound manufacturing and quality control level
under large-scale manufacturing with product qualification ratio as high as 99.96%.
Moreover, the Company has grasped the core technology of writing instrument in nib,
ink and its matching, developed self-owned mold development technology, and
participated in preparation of national standard and industry standard for several
products. The product design center of the Company was acknowledged as a “state
level industrial design center”.
(III) Quality control
The Company always highly valued the quality of products to achieve greater customer
satisfaction. By consistently adhering to requirements as prescribed in ISO9001:2008
quality control mechanism, the Company has upgraded the quality of products and
supporting service on an ongoing basis.
1. Establishment of quality control mechanism
Both production quality control department and OEM quality control department have
been established and subordinated to the production center of the Company to jointly
conduct the control and inspection of the products. The Company has set up quality
surveillance network throughout the whole business cycle covering supplier
management, raw material procurement, manufacturing process, finished goods
inward as well as control over OEM products.
The Company has, in strict compliance with the requirements of ISO9001:2008,
compiled and maintained 40 types or so of quality control documentations, including
quality control manuals, program files, regulatory documents, quality control plans,
authentication documents and records etc. By availing itself to all these procedures,
the Company has enabled the effective implementation of the quality control system
and strengthened the monitoring of the quality control system.
2. Standard quality control process
The Company has constructed well-defined quality inspection mechanism, mainly
including:
(1) Control over the received raw materials, i.e. to inspect on the quality of the
received raw material, parts and accessories. Moreover, in consideration of
particular nature of the materials and under certain circumstances, the Company
may appoint third party quality inspectors to conduct quality inspection on sample
basis in compliance with GB2828.(2) The Company has, in compliance with quality standards prescribed in
ISO9001:2008, formulated process quality inspection policies to incorporate all
workshops and production procedures into the total quality management regime.(3) The quality control process on the finished goods comprises the inspection on the
received finished goods and OEM products manufactured by third party(ies).① Inspection on in-house made finished goods: The Company shall conduct 100%
full inspection on the exterior appearance and function of all in-house made goods.② Inspection on OEM products manufactured by third party(ies): All OEM third party
manufacturers are required by the Company to supply pre-batch production
samples for comprehensive inspection by both the products quality control
department and craftsmanship departments. Trial production in small batches
shall not commence until the samples have passed the inspection. Finally the
batch production in large quantity shall commence once the trial production
products have passed the inspection by the products quality control department
of the Company. Once the production is over, formal sign-off upon inspection shall
be conducted in compliance with pre-defined standards set by the Company. Only
the finished goods that have met the quality standards can be received and later
delivered by the Company.The quality inspectors’ team of the Company shall not only inspect, monitor andcontrol the quality of products along the industrial chain, but also conduct PDCAinspection on the whole quality inspection system itself so as to harness continuousimprovement in the quality of both in-house products and outsourced products as wellas the effectiveness of the quality control system itself. By adopting the foregoingquality assurance system, the Company is well ahead of its majority of its counterpartswithin the sector in terms of product deficiency ratio.
(IV) Testing capability
After approximately one year of deliberation, the testing laboratory of M&G Stationery
has been officially awarded the accreditation certificate of China National
Accreditation Service for Conformity Assessment (CNAS), which indicates that the
testing capacity and testing results of and from the testing laboratory of M&G
Stationary has gained mutual multi-laterally acknowledgment by its counterparts in
101 countries worldwide. As the unique accreditation body that issues the most
authoritative certificates to inspection labs, CNAS also tops its counterparts in terms
of timelines of review and demanding standards applied during review.
Upon the acknowledgment from the CNAS, M&G Stationery has not only possessed
the testing capacity of the highest standards at home, but also will be eligible for
conducting accreditation jobs and having access to bi-lateral and/or even multi-lateral
international exchange with its overseas counterparts. The test report issued by M&G
Stationery will, within its capacity of accreditation, can be deemed internationally
binding and authoritative.
M&G Stationery has as always advocated research, development and innovation on its
own. The in-house testing laboratory is the critical success factor of quality assurance
in terms of its technical capacity. What’s more, the testing laboratory is shouldered
with the responsibilities of formulating applicable standards in a bid to usher Chinese
stationery products into a new era. M&G Stationery will remain committed to
reinforcing the strength and capacity of the laboratory while optimizing the quality
control regime on an ongoing basis. In addition to ensuring the quality of products, the
laboratory will help to drive further research, development, and innovation by taking
advantage of its cutting-edge testing capacity in pursuit of the goal of carving the name
of “China made refills” with more pride.
(V) Workplace safety
In order to ensure workplace health and effectively respond to unsolicited 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 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 2019, 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.
VI. Employee Care- People Oriented, One for All and All for
One
(I) Protection of lawful rights and interests of employees
In strict compliance with the “Labor Law” and other relevant laws and regulations as
well as social security laws and bylaws, the Company covers old-age insurance, medical
insurance, work injury insurance, unemployment insurance, maternity insurance as
well as housing provident funds, so as to provide a healthy and safe working and post-
job environment for employees and effectively safeguard their lawful rights and
interests. In addition, the Company has formulated its control policies on workplace
safety. We conduct training with regard to safety to increase safety awareness, and
regularly conduct safety inspection, fire-fighting rehearsals to identify and avoid
potential safety hazards..
(II) Talent training and development
Generally, M&G Stationery aims to build a world-class team with highly 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.
M&G Stationery offers competitive remuneration package to its employees within the
industrial sector, 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 vocational
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, multi-savvy
management talents as well as highly professional technocrats playing a leading role.
1. Development of talents
A slew of workplace training modes are available to employees of the Company,
including new staff orientation, pre-employment training, workplace site training,
special skills training and other forms of training whereby:
(1) Mechanism of training the potential executives will enable the managers of all
levels to receive trainings on the improvement of management skills so as to assist
the Company in forging an executive team boasting combined skill sets in business
operation, management and leadership, who will in future direct the Company in
a more institutionalized, orderly and effective way while reflecting the Company’s
culture in terms of uniform management semantics, management style and
management philosophy.(2) Mechanism of professional skills development will enable the backbones of the
manufacturing team of M&G Stationery to receive complete vocational training
and improve their professional acumen. 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) The “M&G Sailing to Future MT” project will enable new graduates to be
developed into a competent talent boasting the potential of future leaders, who
will be aligned to the development objectives of the Company with respect to
their strength. The operation of the MT project is very instrumental to attracting
talents who possess the potentials of the most competent future leaders to
maintain sustained competitive edge of M&G Stationery. Moreover, the MT
project will have strategic impact on the Company’s business whereby the
Company will be able to identify, develop and retain competent talents at lower
costs and spawn employees’ strong sense of affiliation to the Company arising
from reciprocation.2. Vocational developmentDiversified channels and tools of vocational development are available to employeesof the Company according to their job functions categorized into executive, functionaland technical gateways.
(III) Caring for employees and corporate culture
Cozy and joyful working environment and relaxation facilities are made available to
each employee of M&G Stationery. One can find within the Company’s premises such
facilities as fabulous office buildings, book bars, gym, indoor basketball square,
training classroom, employees’ dormitory, canteen etc. Moreover, the Company will
regularly hold such inter-employees recreational activities as sports events, art
festivals, weekend parties etc. for employees to choose according to their personal
interest so as to enable employees to balance between work and life.
1. During the M&G sporting season, sizeable sports events are held amongst all M&G
employees where the value of “joyful sporting activities make healthy life” is
advocated. By holding sports events amongst all employees, they will be given a
chance to put into full play their physical potential while interacting with other
team members so as to highlight their team cohesion and collective sense of pride.2. M&G art festivals enable employees to showcase their soft art-related skills. Art
festivals are held in-house to promote M&G culture while enriching the spare-
time life of employees whereby employees are able to enhance their taste of art
and culture and lubricate cross-department communication. Moreover, art
festival is a theatre at which M&G Stationery and soft talents of employees are
showcased to enhance cohesion.3. As a vital form of holding recreational activities amongst employees, the M&G
Society is also a theatre for nurturing sense of ownership and affiliation of
employees towards M&G Stationery. Summarily, employees are enabled to
showcase their alternative skills via such a wonderful theatre of M&G Society,
which in turn helps to put forward M&G culture of harmony and health.VII. Sincerity-Helping the Underprivileged and Transmitting
Love
M&G Stationery has, since the commencement of business, incorporated social
responsibilities into the development of business activities and committed itself to
tapping on such public welfare activities as public education, charity events and
financial support to poverty relief etc. Kicking off in September 2015 as endorsed by
Shanghai Charity Foundation, the special fund of M&G rainbow public welfare
(hereinafter as “M&G rainbow charity”) financed a slew of public welfare projects
featured by the brand of M&G Stationery, including the “Gold Seeds Plan” to focus on
caring for juveniles whose parents are migrant workers, “Greatest Love under the
Azure Sky” to draw public concern with such special group as those suffering from
autism, “M&G Hearts Plan” to care for in-house employees and “Rainbows are Coming
Plan” to advocate charity and public welfare in collaboration with NGOs.
1. “Gold Seeds Plan” to finance the public education of the underprivileged
The “Gold Seeds Plan” project v. 2.0 experienced a takeoff during the year of 2019
when the charity activities purporting to promoting M&G brands take in new forms
other than mere donation of supplies, including the donation of M&G rainbow creative
classroom, renovation of village school campus etc.
(1) Donation of stationery kits: more than 11,000 stationery kits were distributed under the “Gold
Seeds Plan” for the year to enable more than 500 teachers to receive indispensable pedagogic
tools.
(2) M&G rainbow creative
classroom plan: during the year
of 2019, M&G donated creative
classrooms for 10 village schools
and over 12,000 books, 50
student’s desks, 300 student’s
chairs, 50 book cabinets and
more than 10 types of children’s
fine art creative supplies coupled
by both online and classroom
training sessions for teachers.
(3) Financial assistance to the
underprivileged teachers and
students: 50 teachers received
financial aids amounting to
RMB100, 000 and 128 students
were awarded with scholarship
for outstanding students
amounting to RMB58,400 during
the reporting year.
2. “Greatest Love under the Azure Sky” plan
Debut of charity project titled as “The Kids of the Stars: Coordinated by Shanghai
Promotion Center for City of Design, the articles hand made by the “Kids of the Stars”
were on display at the 24th International Hand-made Articles Exhibition held in Milan
of Italy in 2019 and applauded by international children and their parents. Moreover,
during the 40th anniversary of Shanghai-Milan design education forum, the charitable
stationery kits were exchanged between the representatives of the two cities as a
token of heralding a new era of friendship between Shanghai and Milan.
3. “M&G Heart Plan” to care for in-house employees
In 2019, “M&G Rainbow Charity” continued to finance
the study support and scholarship of employees’ minor
offspring and provide financial aids to employee
suffering from serious diseases to resolve and relieve the
problems of further studies of the underprivileged
employees’ kids and poverty arising from unsolicited
serious diseases contracted by in-house employees.
Aggregate RMB140,000 of financial aids and charitable
scholarship were disbursed to qualifying employees.
Moreover, 6 charitable medicare service events were
accessed by qualifying employees for the benefit of
approximately 300 headcounts.
4. Charitable activities under “Rainbow is Coming Plan”
Initiated and sponsored by “M&G Rainbow Charity”, both the employees and business
partners of the Company participated in various charitable activities to showcase the
positive energy of M&G peers.
(1) Three-hour charitable donation in petty cash simply from your fingertips: A
charitable activity was held by the Company in Songjiang District of Shanghai
amongst in-house employees where 300 employees donated petty cash to charity
group and collect the token of loving hearts; (2) The journey of an egg: The
Company officers and employee volunteers etc. launched a charitable walk within
Shanghai to collect the token of loving hearts and conducted charitable auction
on charitable supplies at the final destiny 50 kilometers away from the starting
point of the walk; (3) Village based education commissioner of Jack Ma plan was
attended by M&G staff to study the current status of village based education by
site visit to village school in collaboration with partners of Alibaba and without
disturbing the day-to-day full-time jobs. (4) Public welfare course: Employees, by
taking advantage of their specialties, voluntarily offered interesting arts courses
for children in remote rural area.In addition to launching various charitable activities, “M&G Rainbow Charity” donated50,000 pieces of oil pastel packed in charitable kits in collaboration with Shenzhen ONEFoundation during the year of 2019. “M&G Rainbow Charity” will, in continuedpartnership with Shenzhen ONE Foundation, extend partnership in donating charitablestudents’ bags and colored pens to reinforce the influence of M&G Brand. We firmlybelieve that we will be even more socially responsible in terms of charity with moreparties partnering with us.
VIII. Mutual Benefits-Adhering to Green and Sustainable
Development
(I) Awareness of environmental friendliness
Bearing in mind the awareness of sustainable development, the Company highly
values and advocates green policy, making sure it is effectively implemented in its
business activities. The Company endeavored to forge an environmentally friendly
manufacturing plant and took active part in and coordinated the environment
preservation activities to respond to state strategy of sustainable development.
Moreover, the Company advocated sustainable consumption to nurture the culture of
being green and endeavored to reduce the emission of carbon dioxide so as to
preserve our mother earth.
1. Green production
The environmental design and the recurring use of environmentally friendly materials
are encouraged.
(1) Environmental design
① Simplified design: simplified parts, reduced mechanic procedures, reduced energy
consumption and lowered emission of carbon dioxide;② No tinting in design cycle: application of color-free plastic while doing best to
avoid the use of colored printing, reduced application of polluting color powder
to preserve earth.(2) Recurring use of① Such consumables as replaceable refills;② Ink and refill in large volume due to their extended durability to reduce depletion.(3) Pollution-free material
① Breakthrough in the development of fully edible colored ink has significantly
enhanced the health and safety of the fine art supplies used by children.② The development of lead-free materials and their application in making pen points
has ensured the health and safety of essential raw materials so as to contribute to
the course of environment protection.③ With the smooth progress of R&D project on New Environmentally Friendly
Materials for Writing Instrument enshrined under the state thirteenth five-year
plan, quite a few sub-topics have passed the research stage.Due to the increased demand for enhanced environmental friendliness and quality ofpens imposed by overseas nations, pens of enhanced environmental friendliness anddiversified functions are bound to be the darling of the market in future. Hence thepen manufacturing sector will no doubt call for the rollout of nascent environmentallyfriendly materials in making pens. With the progress in research and development oflead-free materials, the Company is endeavoring to enhance the overall technicality ofour pen manufacturing sector, which will be translated into increased profitability andadded value of products. In that case, we will be able to accelerate our speed oftransformation from a mass pen manufacturer to a premium pen manufacturer. Withthe commercialization of nascent lead-free materials, the Company will place lessreliance on non-environmental friendly raw materials in the upcoming years. In thatcase, any harm to human health arising from such heavy metal as lead will be broughtunder control and the volume of VOC emission will be reduced to reap both social andecological benefits.
Moreover, botanic plants abound within the factory premises, indicating that the
Company highly values environment preservation. During the production process, the
plastic raw granular edges did not produce solid waste or environmental pollution
after going through smashing, re-granulating and recycling process; paperboard edges
for package was recycled and sold to local recycle stations for recycled paper. The
Company has not admixed any harmful recycling waste in its production, so no volatile
gas that is harmful to the health of human beings was produced. Besides, domestic
wastewater was disposed in accordance with sewage treatment regulations set by the
local government.
2. Business activities under the green policies
The roles and responsibilities of each department of the Company in terms of
environment preservation are that:
(1) Production center shall be responsible for continuous control of energy
consumption, clean production as well conducting “6S” control procedures so as
to maximize the usage of natural resources.(2) R&D center shall be responsible for the research, development and marketing of
nascent energy-saving craftsmanship and technology.(3) Equipment and engineering department shall be responsible for monitoring and
administering the consumption of energy by means of energy related data
collection, analysis and comparison with those provided by the production center
so as to help to improve craftsmanship. The Company shall, based upon the data
of energy consumption, work out proposal for energy saving and emission
reduction for further implementation.(4) The infrastructure construction department shall be responsible for conducting
environmental feasibility studies against new construction projects in a bid to
ensure that any resources to be inputted into the new project shall meet the
requirements of environment preservation.The Company has from time to time instilled into employees the awareness ofenvironment protection and advocated the application to workplace. For example,employees are encouraged to turn off the light after work, use both sides of each sheetof paper as well as use voice-controlled and/or sensors energy saving facilities for thepurposes of energy saving. Moreover, the Company has also encouraged consumersat large to take steps to preserve environment by instilling into the public its awarenessof environment preservation via such media as newspapers, magazines and Internetand by holding onsite environment preservation events.
(II) Action for environment protection
In 2019, the Company successfully acquired Axus Stationery (Shanghai) Company Ltd.
(hereinafter as “Shanghai Axus”). As an enterprise awarded with the title of state level
hi-tech company, Shanghai Axus boasts prominent competitive edge within the sub-
sector of wooden pencil and cutting edge advantage in technical research and
development in segmented products with overseas distribution channels covering
over 80 countries and region(s). Shanghai Axus currently owns more than 50 patents
covering the formula of pencil lead, formula of paint coating, timber production and
processing and equipment of pencil production and a domestically and internationally
prestigious wooden pencil brand named MARCO.
Shanghai Axus has as always pursued the belief of understanding, cherishing and
caring trees, which has been translated into the production of wooden pencils under
MARCO brand. It has been well acknowledged by the public that Shanghai Axus has
spared no effort promoting environment protection. Improvements have been made
with respect to craftsmanship of manufacturing MARCO pencils so as to mitigate the
consumption of resources and maximize the usage of readily available resources
without compromising the safety and quality of products.
No tropical timber is applied during the production of MARCO pencils without
appropriate authentication. Moreover, in order to reduce the consumption of
satinwood (a type of scarce wood under state protection of the second level) during
the production of pencils, Shanghai Axus trail blazed the industry sector through the
introduction of nascent craftsmanship whereby the Company could replace satinwood
with fast-growing poplar in producing pencils and put the new technology into
production in 2009. Shanghai Axus has established three timber processing centers to
harness the supply of raw material for pencils production adjacent to each of the three
fast-growing poplar forest zones at Yili of Xinjiang Autonomous Region, Changbai
Mountain of Jilin Province and Siyang of Jiangsu Province. Shanghai Axus has fully
translated the awareness of environment preservation into the entire industrial chain
starting from logging to the cultivation of forest.
IX. Outlook
As indicated in report of the 19th CPC National Congress, China’s economy has shifted
from a high-speed growth stage to a high-quality development stage with innovation
as the main driver. Facing the 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. At present, M&G Stationery is a pioneer on the innovation path in Chinese
stationery industry, completed a stunning transformation from Made in China to
Created in China.
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 competitiveness and
boost the healthy and sustainable development in the industry, helping a sustainable
and high-quality growth in China.
Strive for greatness through a small pen. As a socially responsible company in China,
M&G Stationery has actively fulfilled social responsibilities since its beginning,
combined social responsibilities with corporate development. During 2019, M&G
Stationery has made efforts to boost various patriotic activities, online and offline, like
“Young Pioneers Gathering” and “Travel with the National Flag” and other events.
Furthermore, its efforts to improve public welfare also involve education, charity,
poverty alleviation and other fields. Looking forward in 2020, M&G Stationery will
continue to fulfill our public value, as always care about and support the development
in public interests, culture and education.
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