Dinglong Increases Stake to 51% in KolionTech

Hubei Dinglong Chemical Co. (Dinglong, China) announced its fully-funded subsidiary  Mito(Mito Color Imaging Co. Ltd), has purchased another 12% stake of KolionTech with its own fund of RMB11.16 million (US$1.81 million). Consequently, Mito will bag 51% stake in KolionTech and become KolionTech’s controlling shareholder

In January 2014, Mito acquired 39% stake in KolionTech, a Zhuhai-based producer of color toner cartridges and remanufactured toner cartridges. Under the mutual agreement, if KolionTech achieved the net profit of RMB16.5 million (US$ 2.68 million), Mito would purchase another 12% of its share at the same price level. Actually, KolionTech’s net profit in 2013 reached RMB 17.77 million (US$ 2.9 million).

Being a domestic pioneering manufacturer of remanufactured and aftermarket color toner cartridges like Mito, KolionTech has a smaller business scale, with an annual production capability of 1.5-2 million of remanufactured color toner cartridges. This integration is likely to rid unfair and excessive competition in the remanufactured toner cartridge business between Mito and kolionTech.