China-based DingLong Reports Strong Growth in Q3

China-based DingLong Reports Strong Growth in Q3

Despite the tough economic times in 2020 for all businesses, especially those that may have been based in the epicentre of the COVID-19 outbreak in Wuhan, China, the DingLong Group has been quick to share the good news for its third-quarter revenues.

According to cninfo.com.cn, the publicly-listed DingLong Group, which headquartered in Wuhan, reported a 54.47% growth for its operating income in the third quarter (Q3), 2020. This was due, in part, to the additional income from its subsidiary Speed Infotech (Beihai). For the same reason, DingLong’s operating costs, as well as sales all increased respectively in Q3.

Some highlights included:

• Operating income reached CN¥443.049 million (US$66.149 million), up 54.47% compared to the same period in last year;
• Operating costs turned out to be CN¥844.85 million (US$125.93 million), up 69.76% year-over-year;
• Sales expense increased to CN¥70.19 million (US$10.46 million), increasing 38.69% when compared with the same period last year;
• Net profit attributable to listed company shareholders turned out to be CN¥40.912 million yuan (US$6.107 million);
• R&D expense was 94.60 million yuan (US$14.1 million), increasing 20.06% when compared with the same period last year.

With the gradual implementation of the company’s strategic layout in the printing and copying consumables industry and the smooth development of its ink cartridge business, the company claims its product structure adjustment has achieved its expected results.

According to the statement, the company’s related business gradually returned to normal during the reporting period, basically eliminating the impact of the suspension period during the first quarter of the pandemic.

“Efficiency is the priority theme for enterprise,” said ShuanQuan Zhu, Chairman of the DingLong Group. “We need to continue to raise it in each area of our operations.”

Zhu added the values-driven culture of DingLong include a “customer-first” attitude, dedication, humility, and remaining alert. “We know where we will to go, but we must walk consistently towards the goal,” Zhu said.

The DingLong Group has patiently built an integrated network of toner, ink, chip and supplies as it positions itself as providing real choice for the global market. “The full DingLong industry chain can meet the market competition,” Zhu said. “We deliver more choice.”

Outlook

Considering the uncertainty of the epidemic situation outside of China, market factors including overcapacity and tough competition, the selling price of the company’s toner cartridges continues to decline.

As a result, the product sales price is at a low-price level when compared with the same period last year, which led to a year-on-year decline in gross profit margin. Dinglong predicts that some consumables subsidiaries are expected to risk a decline in net profit for the year compared with the same period last year.

Related:

• China’s Dinglong Reports Growth in 2020
• Wuhan Gets Back to Work – Hubei Dinglong Gets Green Light

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