China’s Dinglong Reports Growth in 2020

China’s Dinglong Reports Growth in 2020

Publicly-listed Dinglong has declared its operating income for the first half of 2020 increased 45.16% year-over-year to 811.02 million yuan (US$117.36 million).

This is despite the global impact of COVID-19 and being headquartered in Wuhan, the Chinese city that was most impacted by lockdowns and infections.

According to the Chinese statutory information disclosure website of Shenzhen listed companies cninfo, the growth is mainly contributed by Dinglong’s subsidiary Speed Infotech (Beihai) Company Limited (Speed), whose income was added into the scope of consolidated statements.

Excluding the impact of the scope of the consolidated statement and the revenue impact of the CCA shutdown, the company’s operating income increased by 5.15% over the same period last year.

Some other highlights include:

• Net profit attributable to shareholders of the listed company was 15 million yuan (US$28.82 million), up 41.52% comparing to the same period in last year, including Dinglong’s another subsidiary Shenzhen Retech Technology Co., Ltd (Retech) original shareholder’s unfulfilled performance commitment compensation income, which affected the net profit of listed companies to increase 106 million yuan (US$15.34 million)
• Total assets were 49 billion yuan (US$649.69 million) as of the end of the period, an increase of 6.74% over the same period of the previous year
• Owner’s equity attributable to shareholders of listed companies was 59 billion yuan (US$519.46 million), an increase of 1.94% over the previous year.

By segment:

Consumables products

• Due to the Covid-19 crisis, the company’s Wuhan headquarters plant stopped production of color polymerized toner for nearly two months. After struggling to catch up in the second quarter, the company’s color polymerized toner sales in the first half of the year increased slightly year-on-year, effectively making up for the loss caused by the epidemic in the first quarter.
• In the second half of the year, the company plans to accelerate the research and development of new products such as Kyocera 5026 and Ricoh SPC220, and promote the optimization and upgrading of old products such as Canon 3530 series and Samsung S51E. In terms of production, it plans to mass-produce Xerox polyester toner and gradually enter the market, while complete the expansion of the Ningbo factory at the same time.
• During the reporting period, Dinglong’s other subsidiary Hangzhou ChipJet Technology (ChipJet)’s chip sales increased by 69% year-on-year. Due to adverse factors such as fewer new product launches in the industry and frequent upgrades of old products, the average unit price of chips during the reporting period decreased by 40% year-on-year, and the average chip gross profit margin decreased by 13.7% year-on-year. However, chip shipments rose sharply in the first half of the year. To a certain extent, the adverse impact on revenue due to the sharp drop in sales prices was reduced. The company claimed that new chips will be introduced to the market in the second half of the year, which will certainly ease the downward trend of gross profit margin.
• Dinglong’s new material development roller sales increased by 90% year-on-year, and revenue increased by 82% year-on-year, mainly due to the increase in the price of H1215DR, the gradual release of the third-phase expansion capacity, and the improvement of production efficiency.

Finished Toner Cartridge Products

During the reporting period, the overall sales and revenue of the finished toner cartridges increased steadily. Among them, the sales of Mito toner cartridges increased by 45% year-on-year, and the sales of Retech toner cartridges increased by 24% year-on-year.

Finished Ink Cartridge Products

• During the reporting period, Speed’s sales volume increased by 34% year-on-year, and its revenue increased by 14% year-on-year, which exerted a positive impact on performance growth during the reporting period.
• Dinglong another subsidiary Zhuhai Dinglong HuiJie Technology Co., Ltd (HuiJie) contributed revenue of 06 million yuan (US$2.32 million) from January to June.

Related:

• Wuhan Gets Back to Work – Hubei Dinglong Gets Green Light

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