Dinglong’s printer segment shows stability
October 25, 2024
Hubei Dinglong Holdings posted strong Q3 results, the printer segment maintained steady but modest growth.
Hubei Dinglong Holdings posted strong Q3 results, with the semiconductor sector driving significant gains, while the printer segment maintained steady but modest growth.
Revenue rose 29.5 per cent year-over-year to RMB 2.43bn (€307m/$324m) for the first three quarters of 2024, bolstered by the expanding semiconductor business, which grew 93 per cent. This segment, now responsible for 45 per cent of Dinglong’s revenue, achieved RMB 10.86bn (€1.37bn/$1.45bn), as the company tapped into rising demand for critical materials used in chip manufacturing.
Dinglong’s printer consumables business, generating RMB 1.32bn (€166m/$176m), reported just a 3 per cent increase year-over-year. Despite slow growth relative to other segments, the segment remains a stable contributor, supported by ongoing cost optimisation efforts that preserved margins. Dinglong’s efforts included supply chain refinement and workforce efficiency measures, highlighting a commitment to stability within this competitive market.
However, the printer segment faces challenges, particularly from market saturation and stiff competition from OEMs and aftermarket suppliers. Although Dinglong’s overall operating cash flow rose 67.5 per cent, debt reliance also increased. The company reported significant short-term borrowing to support expansion, raising concerns about its financial resilience should growth slow.
The outlook remains positive for Dinglong, whose R&D spending grew by 21 per cent, with major investments focused on high-margin segments. The company’s strategy suggests a shift towards high-growth areas, but sustainable gains may require renewed focus on printer innovations to retain balance.
Categories : City News
Tags : 2024 Business Dinglong Financials
