Dinglong Co., Ltd. "Slimming Down": Plans to sell two major printing consumables subsidiaries for nearly 200 million yuan; the target companies' total revenue last year was nearly 1.3 billion yuan.

Everyday Business News reporter｜Cheng Pengli    Everyday Business News editor｜Yang Jun

To focus on the “main channel,” Dinglong Shares (SZ300054, share price 47.53 yuan, market cap 45.062 billion yuan) is kicking off a “downsizing” campaign.

On the evening of April 2, Dinglong Shares announced that the company plans to transfer, in total, approximately 193 million yuan, the controlling stakes in two subsidiaries under it that engage in the end-market business of printing consumables—Zhuhai Mingtuzai Chaojun Technology Co., Ltd. (hereinafter referred to as Zhuhai Mingtuzai) and Beihai Jixun Technology Co., Ltd. (hereinafter referred to as Beihai Jixun). After the transaction is completed, these two subsidiaries, which together contributed 1.282 billion yuan in revenue in 2025, will no longer be included in the company’s consolidated financial statement reporting scope.

Dinglong Shares said that this asset disposal is a proactive and strategic exit by the company to focus its planning on the innovative materials field and to achieve long-term, sustainable, high-speed development. The reporter from Daily Economic News learned that in 2025, the company’s semiconductor segment business (including materials and chips) achieved operating revenue of 2.086 billion yuan, up 37.27% year over year, accounting for 57% of the company’s total revenue, becoming the “main engine” for performance growth.

According to Dinglong Shares’ announcement, this transaction is expected to bring the company nearly 440 million yuan in net cash inflow. At the same time, the exit from the end-market business of consumables will basically not have an impact on the company’s profits.

Under the plan disclosed by Dinglong Shares, this asset disposal involves two separate equity transfers.

First, Dinglong Shares’ wholly owned subsidiary, Hubei Xinping Technology Co., Ltd. (hereinafter referred to as Xinping Technology), plans to transfer the 60% equity stake it holds in Zhuhai Mingtuzai to Beijing Beifang Office Supplies Co., Ltd. (hereinafter referred to as Beifang Office) at a price of 120 million yuan. After the transaction is completed, Dinglong Shares’ ownership interest in Zhuhai Mingtuzai Chaojun will decrease from 100% to 40%.

Financial data show that Zhuhai Mingtuzai achieved operating revenue of 634 million yuan in 2025 and net profit of 19.0317 million yuan. The reporter noted that Zhuhai Mingtuzai’s overall valuation refers to its book operating net assets as of February 28, 2026, but excludes the 80 million yuan receivable debt from Xinping Technology, as well as land and properties valued at approximately 35.1203 million yuan. After the transaction is completed, the equity interest in this portion of assets will still be 100% attributable to Dinglong Shares.

As for the identity of the acquirer, Beifang Office was established in 1991. It is a well-known office consumables company in the industry, and its subsidiary brands include “befon de yin,” among multiple in-house brands.

Second, Xinping Technology plans to transfer the 15% equity stake it holds in Beihai Jixun to Suzhou Zhongxing Huichuang Technology Co., Ltd. (hereinafter referred to as Zhongxing Huichuang) at a price of 72.75 million yuan. Beihai Jixun is mainly engaged in recycled ink cartridge business. It was previously a company listed on the National Equities Exchange and Quotations (NEEQ). It terminated its listing in January 2025. After the transaction is completed, Dinglong Shares’ ownership interest in Beihai Jixun will decrease from 59% to 44%. Meanwhile, the transferee, Zhongxing Huichuang, will form acting-in-concert parties with several other shareholders, collectively holding 56% of the voting rights of Beihai Jixun, thereby obtaining control of the company.

Dinglong Shares said that based on the transfer price, Beihai Jixun’s overall valuation reaches 485 million yuan, representing a premium of 61.67% over its book net assets as of the end of February 2026. The announcement shows that in 2025, Beihai Jixun achieved operating revenue of 648 million yuan and net profit of 35.1438 million yuan, with profitability stronger than that of Zhuhai Mingtuzai.

The reporter learned that the transferee in this transaction, Zhongxing Huichuang, is the company invested by the founder team of Jixun Technology and the existing shareholders.

After the completion of the above two transactions, Zhuhai Mingtuzai Chaojun and Beihai Jixun will no longer be included in Dinglong Shares’ consolidated financial statements. In its announcement, Dinglong Shares expects that the transaction will recover net cash of nearly 440 million yuan (including, but not limited to, equity transfer payments, dividend payments, etc.).

For this “downsizing,” Dinglong Shares clearly stated in the announcement that disposing of the traditional end-market business of printing consumables is a proactive and strategic exit by the company to focus its planning on the innovative materials field and to achieve long-term sustainable high-speed development.

In recent years, Dinglong Shares has completed its strategic transformation from traditional printing general consumables to upstream semiconductor materials. The company’s 2025 annual report shows that for the full year, it achieved operating revenue of 3.66 billion yuan, up 9.66% year over year; and attributable to parent net profit of 720 million yuan, up significantly by 38.32% year over year.

The main driver of the performance growth comes from the semiconductor business segment. In 2025, the company’s semiconductor segment business (including semiconductor materials and chips) achieved operating revenue of 2.086 billion yuan, up 37.27% year over year, and its share of the company’s total operating revenue has reached 57%.

By contrast, in 2025, Dinglong Shares’ printing and copying general consumables business achieved sales revenue of 1.559 billion yuan (excluding printing consumables chips), down 12.97% year over year.

On the evening of April 2, Dinglong Shares said in the announcement that the contribution of the end-market printing consumables business it is divesting (toner drums, ink cartridges) to the company’s profits is already relatively small. The data show that in fiscal year 2025, the contribution of this business to attributable to parent net profit accounted for only 5.22%; the company expects that in the first quarter of 2026, this proportion will further fall to below 1%. Therefore, the company believes that this asset derecognition will “basically not have an impact on the company’s profits.”

It is worth noting that after retaining a small number of shares in the end-market consumables business through this transaction, Dinglong Shares still plans to continue reducing its ownership ratio in the toner drums and ink cartridges business of printing consumables over the next 1 to 2 years, and to exit at an opportune time with favorable pricing. However, the company will still retain the colored polymer toner powder and the printing consumables chips (Qijie Technology) business. The announcement believes that the colored polymer toner powder technology has high barriers and stable profits, and that the technology can further be applied in the fields of semiconductor and lithium battery functional materials.

Cover image source: Zhu Yu

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