Optimize asset allocation Dinglong Co., Ltd. (300054.SZ) plans to spin off the general printing consumables terminal business

Dinglong Co., Ltd. ( 300054.SZ ) Announcement, the company plans to optimize and adjust its business structure for the terminal operation of general consumables such as toner cartridges and ink cartridges through equity transfers to control holdings, promote the de-listing of the related assets, and concentrate advantageous resources into high-growth areas of innovative materials.

On April 1st, the company’s board of directors approved the proposals “On the Sale of Part of the Equity of Wholly-Owned Subsidiary Zhuhai Mingtu Chaojun Technology Co., Ltd.” and “On the Sale of Part of the Equity of Controlling Subsidiary Beihai Jixun Technology Co., Ltd.”, intending to transfer the 60% equity of Zhuhai Mingtu Chaojun Technology Co., Ltd. ( held by the company’s wholly owned subsidiary, Hubei Xinping Technology Co., Ltd. ) (hereinafter referred to as “Xinping Technology”) (, based on the overall valuation referencing Zhuhai Mingtu Chaojun’s book operating net assets, excluding the receivables from Xinping Technology and the net book value of Zhuhai Mingtu Chaojun’s land and property, to Beijing North Office Supplies Co., Ltd. ) (hereinafter “North Office”). After this transaction, the company’s equity stake in Zhuhai Mingtu Chaojun will decrease from 100% to 40%. The company also plans to transfer 15% of the equity in Beihai Jixun Technology Co., Ltd. (, held through Xinping Technology, to Suzhou Zhongxing Huichuang Technology Co., Ltd. ) (hereinafter “Zhongxing Huichuang”) ( at a price of 72.75 million yuan, implying an overall valuation of 485 million yuan for 100% of Jixun Technology, with a premium of 61.67% over its book net assets. After this transaction, the company’s equity ratio in Jixun Technology will decrease from 59% to 44%. Additionally, other shareholders of Jixun Technology—Suzhou Zhongxing Huichuang Technology Co., Ltd., Yang Hao, Zhao Chenhai, Li Baohai, and Beihai Chengde Investment Partnership (Limited Partnership)—will, through signing a concerted action agreement, collectively hold 56% of Jixun Technology’s shares and voting rights, gaining control over Beihai Jixun. Zhuhai Mingtu Chaojun and Jixun Technology will no longer be included in the company’s consolidated financial statements.

The announcement states that this divestment of the traditional consumables terminal business involving toner cartridges and ink cartridges is a strategic and proactive move by the company to focus on innovative materials and pursue long-term sustainable high-speed development. It is a key measure to optimize asset allocation and concentrate on the core innovative materials business, which will also accelerate the company’s cash flow return.