Chenguang stationery and office supplies major customers' procurement contribution accounts for more than half of the revenue

On April 28, Shanghai Chenguang Stationery Co., Ltd. disclosed its performance report.

The report shows that in the first quarter of 2022, Chenguang stationery achieved a revenue of about 4.229 billion yuan, a year-on-year increase of 10.93%; The net profit attributable to the parent company was about 276 million yuan, a year-on-year decrease of 16.04%.

Chenguang stationery's income increase does not increase profits, mainly due to the adjustment of its product structure. In terms of products, in the first quarter of 2022, the office direct sales products of Chenguang stationery achieved a revenue of 2.146 billion yuan, a year-on-year increase of 9.3%, accounting for 50.74% of the total revenue. However, the gross profit margin of office direct sales products, which account for half of Chenguang stationery, decreased by 1.2% year-on-year to only 9.3%.

At the same time, the report shows that the gross profit margins of Chenguang stationery, writing tools, student stationery and office stationery products were 40.4%, 33.42% and 29.24% respectively, and the realized revenue decreased by 25.37%, 6.69% and 7.18% year-on-year respectively.

Judging from the fact that the revenue of Chenguang stationery office direct sales products increased by 9.3% year-on-year, while the revenue of office stationery decreased by 7.18% year-on-year, the market demand for Chenguang office stationery has not decreased, but has embarked on different channels. According to the annual report, Chenguang stationery office direct sales business mainly includes central enterprise customers, government customers and financial customers (such as Agricultural Bank of China).

However, it is rare that the gross profit margin of other products under Chenguang stationery is as high as 46.65%, and the revenue has also increased by 14.48% year-on-year. Although this high gross profit and high growth product has only contributed 6.21% of the revenue to Chenguang stationery for the time being.


Source: Financial World