Established stationery giant Chenguang Co., Ltd. plans to list its recent "revenue driver" subsidiary on the Hong Kong stock market

Everyday News Reporter | Huang Hai Everyday News Editor | Wen Duo

Veteran stationery giant Morning Light Holdings (SH603899, stock price 26.20 RMB, market value 24.129 billion RMB) plans to spin off its controlling subsidiary, KeliPu Technology Group Co., Ltd. (hereinafter referred to as “KeliPu”), for a Hong Kong listing.

On the evening of March 16, Morning Light Holdings announced that after careful consideration of industry development trends and strategic planning, the company is planning to spin off KeliPu for a listing on the Hong Kong Stock Exchange. Morning Light stated that if the spin-off plan is implemented, it will not result in the company losing control over KeliPu, nor will it significantly adversely affect the operation and development of other business segments or the company’s overall sustainable profitability, nor will it harm the company’s independent listing status.

Currently, the spin-off listing is still in the preliminary planning stage. “The feasibility and specific plan of the spin-off listing are still to be further evaluated. After thorough analysis and drafting, the detailed plan will be submitted separately for review by the company’s board of directors and shareholders,” said Morning Light.

According to Morning Light, KeliPu’s main business is enterprise general materials digital procurement services, primarily providing comprehensive digital procurement solutions across all scenarios for clients including central enterprise groups, financial institutions, government agencies, Fortune 500 companies, and state-owned and private enterprises. These services cover office one-stop, MRO (maintenance, repair, and operations) industrial products, marketing gifts, and employee benefits, from product procurement, supply chain management, warehousing and logistics to sales to corporate clients, with an independent complete operational system separate from Morning Light.

Regarding this spin-off, Morning Light stated that an independent listing for KeliPu will fully leverage the capital market to optimize resource allocation, expand financing channels for KeliPu Technology Group, and further enhance its financial strength, corporate governance, and core competitiveness, helping it achieve high-quality and sustainable development.

“At the same time, this spin-off will deepen the company’s layout in the enterprise general materials digital procurement service sector, enhance overall competitiveness, and align with the company’s overall strategic development goals,” Morning Light added.

Public information shows that in Morning Light’s revenue structure, KeliPu has played a “pillar” role in recent years.

In the first three quarters of 2025, Morning Light achieved revenue of 17.328 billion RMB, a year-on-year increase of 1.25%, with net profit attributable to the parent of 948 million RMB, down 7.18% year-on-year. Among them, KeliPu, mainly responsible for direct office sales, achieved revenue of 9.691 billion RMB, up 5.83%.

Compared to other business segments, KeliPu’s gross profit margin is relatively lower.

In the first three quarters of 2025, the gross profit margin for Morning Light’s direct office sales (all products sold by KeliPu) was only 6.78%, down 0.34 percentage points year-on-year. During the same period, the gross profit margins for Morning Light’s writing tools, student stationery, office stationery, and other products were 44.12%, 45.57%, 26.55%, and 43.91%, respectively.

At the end of October last year, several securities firms conducted research on Morning Light, with some participants asking management about KeliPu’s revenue growth and declining gross profit margins.

Regarding KeliPu’s revenue recovery in the third quarter, Morning Light explained that it was mainly due to the normalization of procurement orders during the quarter and successful expansion of new clients, leading to rapid revenue growth.

As for the decline in KeliPu’s gross profit margin, Morning Light responded that it was influenced by factors such as business structure proportions.

“Going forward, KeliPu will focus on developing four major business segments, continuously upgrade and optimize the electronic trading system, embrace digital development trends to improve platform efficiency; promote the development of core and proprietary products, increasing the sales ratio of self-operated and proprietary products; actively expand new clients, continuously enrich the client structure, and improve KeliPu’s profit levels,” said Morning Light.

Cover image source: Everyday Media Asset Library