Gelonghui, April 2nd – Dinglong Co., Ltd. (300054.SZ) announced that it plans to transfer 60% of its equity in Zhuhai Mingtu Chaojun Technology Co., Ltd. (“Zhuhai Mingtu Chaojun”), held through Hubei Xinping Technology Co., Ltd. (a wholly-owned subsidiary of the company, hereinafter referred to as “Xinping Technology”), to Beijing Northern Office Supplies Co., Ltd. (“Northern Office”) for RMB 120 million. The valuation is based on Zhuhai Mingtu Chaojun’s net operating assets excluding accounts receivable from Xinping Technology and the book value of land and property owned by Zhuhai Mingtu Chaojun. After this transaction, the company’s equity stake in Zhuhai Mingtu Chaojun will decrease from 100% to 40%. Additionally, the company plans to transfer 15% of its equity in Beihai Jixun Technology Co., Ltd. (“Jixun Technology”), also held through Xinping Technology, to Suzhou Zhongxing Huichuang Technology Co., Ltd. (“Zhongxing Huichuang”) for RMB 72.75 million, implying a total valuation of Jixun Technology at RMB 485 million, representing a premium of 61.67% over its book net assets. Following the transaction, the company’s equity stake in Jixun Technology will decrease from 59% to 44%. Meanwhile, other shareholders of Jixun Technology, including Suzhou Zhongxing Huichuang Technology Co., Ltd., Yang Hao, Zhao Chenhai, Li Baohai, and Beihai Chengde Investment Partnership (Limited Partnership), will collectively hold 56% of Jixun Technology’s shares and corresponding voting rights through a unified action agreement, thereby gaining control over Beihai Jixun. Zhuhai Mingtu Chaojun and Jixun Technology will no longer be included in the company’s consolidated financial statements.
The counterparty in this transaction involving the sale of the company’s equity in Zhuhai Mingtu Chaojun, Beijing Northern Office Supplies Co., Ltd., is a well-known office consumables supplier within the industry. The counterparty for the sale of equity in Jixun Technology, Suzhou Zhongxing Huichuang Technology Co., Ltd., is an enterprise invested in by Jixun Technology’s founding team and existing shareholders, specializing in the research and production of inkjet print heads. Both counterparties involved in this transaction possess deep insights and forward-looking perspectives on the terminal business of printing and copying consumables.
This divestiture of the company’s traditional consumable terminal businesses, such as toner cartridges and ink cartridges, represents a proactive and strategic move by the company to focus on innovative materials and ensure long-term sustainable high-speed growth. It is a critical step to optimize asset allocation and concentrate on core innovative material businesses, which will accelerate cash flow returns. This initiative will expedite the company’s comprehensive transformation into a high-tech, high-barrier, and widely applicable innovative materials platform enterprise; reshape the company’s value proposition and growth positioning in the capital market; optimize its financial structure, improve profitability, and carry significant strategic importance for the company’s high-quality, sustainable development.
