Dinglong Co., Ltd. ( 300054.SZ ): Plans to separate and dispose of the general printing consumables terminal business by transferring the controlling stakes of two consolidated subsidiaries.

Gelonghui April 2nd | Dinglong Co., Ltd. ( 300054.SZ ) announced that the company intends to transfer a 60% stake in Zhuhai Mingtu Chaojun Technology Co., Ltd. (referred to as “Zhuhai Mingtu Chaojun”) held through its wholly-owned subsidiary, Hubei Xinping Technology Co., Ltd. (referred to as “Xinping Technology”), to Beijing North Office Supplies Co., Ltd. (referred to as “North Office”). The overall valuation of Zhuhai Mingtu Chaojun is based on its book value of operating net assets, excluding receivables from Xinping Technology, and the net book value of land and property owned by Zhuhai Mingtu Chaojun, at a price of 120 million yuan. After the transaction, the company’s equity stake in Zhuhai Mingtu Chaojun will decrease from 100% to 40%. The company also plans to transfer a 15% stake in Beihai Jixun Technology Co., Ltd. (referred to as “Jixun Technology”) held through Xinping Technology to Suzhou Zhongxing Huichuang Technology Co., Ltd. (referred to as “Zhongxing Huichuang”) at a price of 72.75 million yuan, implying a total valuation of 485 million yuan for 100% of Jixun Technology, representing a 61.67% premium over its book net assets. After the transaction, the company’s equity stake in Jixun Technology will decrease from 59% to 44%. Meanwhile, 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 collectively hold 56% of Jixun Technology and corresponding voting rights through a voting agreement, gaining control over Beihai Jixun. Zhuhai Mingtu Chaojun and Jixun Technology will no longer be consolidated into the company’s financial statements.

The counterparty for the company’s sale of Zhuhai Mingtu Chaojun’s equity—Beijing North Office Supplies Co., Ltd.—is a well-known office consumables supplier in the industry. The counterparty for the sale of Jixun Technology’s equity—Suzhou Zhongxing Huichuang Technology Co., Ltd.—is an enterprise invested in by Jixun Technology’s founding team and current shareholders, focusing on the research, development, and production of inkjet printheads. Both partners involved in these transactions have deep understanding and forward-looking insights into the terminal business of printing and copying consumables.

This divestment of traditional consumables terminal business—such as 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 step in optimizing asset allocation and concentrating on core innovative materials businesses, which will accelerate cash flow recovery. This will help the company transition fully into a high-tech, high-threshold, widely applicable innovative materials platform enterprise; reshape its value proposition and growth positioning in the capital market; optimize financial structure; and improve profitability quality, all of which are of strategic importance for the company’s high-quality, sustainable development.