Dinglong Notches Up Successful First Quarter

Dinglong Notches Up Successful First Quarter

Dinglong, the well-known chemical toner manufacturer based in Wuhan in Hubei province celebrated its twentieth anniversary in 2020.

The company has just delivered its first-quarter 2021 report. The company’s 42-page Q1-2021 report is all in Chinese and is available online.

Summary

In the first quarter of 2021, Dinglong Group:

1. achieved a total operating income of CN¥520 million (US$80.15 million), an increase of 83.7% year-on-year;
2. realized net profit attributable to the parent company of CN¥37.538 million (US$5.79 million), an increase of 160.7% year-on-year;
3. earnings per share were 0.04 yuan;
4. company’s gross profit margin was 35.1%, a year-on-year increase of 7.4 percentage points; and
5. saw a net profit margin of 9.2%, a year-on-year increase of 3.3 percentage points.

The company’s operating cost in the first quarter of 2021 was CN¥340 million (US$52.4 million), a year-on-year increase of 64.9%, which was lower than the 83.7% growth rate of operating income, resulting in a 7.4% increase in gross profit margin.

The expense ratio during the period was 21.3%, a decrease of 2.5% from 2020, and the expense control was reasonable. Operating cash flow decreased from CN¥32.616 million (US$5.03 million) to -CN¥63.784 million (-US$9.83 million), a year-on-year decrease of 295.6%.

Companies in the Group

Well-known company brands like Hubei Dinglong Chemical Co., Ltd (Dinglong Chemical), Zhuhai Mito Color Imaging Co., Ltd (Mito), Shenzhen Retech Technology Co., Ltd (ReTech), Hangzhou Chipjet Technology Co., Ltd, (Chipjet), Speed Infotech Holdings Limited (Speed) and Zhuhai Topcolor Image Products Inc (Topcolor) play an important part in the combined strategy.

Background

Formerly known as Hubei Dinglong Chemical Co. Ltd., the renamed Hubei Dinglong Co. Ltd is publicly listed in the Growth Enterprise Market at the Shenzhen Stock Exchange in China (300054.SZ). As such, it was the first to be listed in the Chinese office consumables industry.

Initially, its main products included color polymer toners but it has broadened its supply chain to include consumables chips, developing rollers, remanufactured and new-build cartridges for laser printers, and in more recent times for inkjet printers as well.

The Zhu brothers, including Shuangquan Zhu (Chairman of the Board) and Shunquan Zhu (General Managing Director), have worked hard to position the company to provide the global and Chinese domestic markets with a one-stop solution.

“It does not matter if you need toners and chips and other components, or finished goods, inks or toners, remanufactured or newly-built cartridges, we are well able to deliver more choices for the aftermarket,” said Shuangquan Zhu.

Among the many subsidiary companies are leaders that support the vision to provide a serious alternative to the other industry giants providing solutions. In order to be accepted globally, the company as a whole was invested heavily in the research and development of its own patented solutions that do not infringe the intellectual property of the printer OEMs.

Hubei Dinglong Co., Ltd owns 886 authorized patents domestically and internationally. Financially, the company continues to gain strength.

Leaders among the Dinglong group agree that the company’s four principles that make the industry chain work, are:

• putting the customer first;
• facilitating innovation;
• exhibiting equal core values; and •
• collaborating forever.

For the future, Dinglong will continue to focus on its core business block and to demonstrate to the global market it can provide a real choice when it comes to supplies, whether that be components or finished goods. “We will continue to penetrate the industry downstream and also further explore the field of microelectronics materials and precision machinery to establish the ‘bipolar business mode’ of development in both the office consumables and photoelectric materials industries,” Zhu said.

Related:

• Dinglong Releases Fiscal Results for 2020
• Dinglong Leader Calls for Innovation and Collaboration
• Dinglong Leader Chips-In with Warning for China Companies
• China-based DingLong Reports Strong Growth in Q3
• China’s Dinglong Reports Growth in 2020

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