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Hubei Dinglong acquires three Chinese companies

February 5, 2016

The toner manufacturer has acquired three domestic companies.

Hubei Dinglong's headquarters

Hubei Dinglong’s headquarters

The company stated that it has “unveiled the three domestic companies for acquisition”, which include Hangzhou Qijie Technology Co., Ltd., Shenzhen Chaojun Technology Co., Ltd., and Ningbo Flexitone New Material Co., Ltd., the latter a toner manufacturer. It added that last November it released a “suspension notice on important issues and […] on major asset restructuring”, which meant it “would purchase assets and raise supporting funds”.

Then in December, it released “several progress notices on major asset restructuring”, and announced a “delay of trading resumption”, adding that “upon accomplishment of the acquisition, Dinglong will hold, either directly or indirectly, a 100-percent stake in the three aforesaid companies respectively”. Last July, it also reported a rise in profits, and expected profits to grow by 20 percent increase in the first half of the year, and earlier that year launched a new subsidiary “engaged in internet technology development and consulting”.

At the time, it was said that increased sales of colour polymerisation toner, alongside increased profit from their Wuhan-based subsidiary, were among the main reasons for the increased profit forecast. The company expected to see net profits rise from 15 percent to 35 percent, or from CN¥71.9 million ($11.5 million/€10.5 million) to CN¥84.4 million ($13.5 million/€12.3 million). Net profits in the same period last year were CN¥62.5 million ($10 million/€9.1 million).

A new report from Reuters noted that Hubei Dinglong also expects to see net profit for 2015 increase by 15 percent to 30 percent, or from CN¥154.5 million ($23.5 million/€21 million) to CN¥174.7 million ($26.5 million/€23.7 million), compared to net profit in 2014 of CN¥134.3 million ($20.4 million/€18.2 million). The company added that “increased sales of main business is the main reason for the forecast”, with net income in 2015 said to be CN¥187.6 million ($28.5 million/€25.5 million).

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