Dinglong Releases Fiscal Results for 2020

Dinglong Releases Fiscal Results for 2020

According to cninfo, China-based Dinglong group reported operating revenue of 1.82 billion RMB (US$277.78 million) for 2020, up 58.15% year-over-year, due to the combination of revenues from its subsidiaries Speed Infotech (Beihai) Company Limited (Speed) and Zhuhai Topcolor Image Products Inc (Topcolor).

At the same time, Dinglong’s operation costs increased 65.2% to 1.22 billion RMB (US$186.21 million) in 2020, which resulted in a 2.9% decrease in gross profit.

During the reporting period, Dinglong R&D investment increased 10.94% year-over-year to 186.47 million RMB (US$28.46 million), and Dinglong asset totalled up to 4.45 billion RMB (US$679.19 million), up 5.91% year-over-year.

When considering the performance of printer and copier consumables:

1. Upstream core consumables, such as colour toners, chips and developing rollers, showed continuous and stable growth, driven by the growing market demand of aftermarket consumables.
   • Color polymerized toner sales increased 13.39% year-over-year while operating revenue increased 19.12%.
   • compatible chip sales increased 47.86% year-over-year while operating revenue increased 16.67%.
   • Developing roller sales increased 61.81% year-over-year while operating revenue increased 63.55%.
2. Ink cartridge business net profit increased 22% year-over-year through the expansion of empty cartridge recycle channels, reinforcement of automation production, as well as adjusting customer structure. Speed’s ink cartridge sales increased 40.77%, with operation revenue up 41.96%, while Topcolor ink cartridge sales increased 58.06%, with operation revenue increase 31.69%.
3. Toner cartridge unit price continued to drop year after year, as did the gross profit for toner cartridge.
   • Mito’s color toner cartridge sales increased 42.9% to over 10 million units, and sales revenue increased 13.22%. However, due to a sharp drop in product unit price, net profit suffered a significant decline comparing to last year.
   • Retech’s black toner cartridge sales increased 38.02%, and sales revenue increased 9.98% comparing to last year. It still reported large losses due to a sharp drop in product unit price as well as increased cost caused by plant relocation, management expenses, and labour compensation.

Related:

• China-based DingLong Reports Strong Growth in Q3

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