Today, Dinglong Technology, the world's largest hair dye raw material leader, was successfully listed on the A-share market.
In the eyes of the public, Dinglong Technology may be an unfamiliar name, but when it comes to its customers, it can be described as a top star enterprise. Not only does L'Oréal France rely on it for 20% of its needs, but also Henkel, which acquired Schwarzkopf, and Coty, a giant in the beauty industry.
The picture comes from the official website of Dinglong Technology
If you are an old reader of "Metropolis Express", you may have read that 12 years ago, "Metropolis Express" reported on the legendary and unfortunate life of the founder of this company - "Zhejiang businessman Zhou Xuelong has been suffering from terminal lung cancer for 14 years, and the company has still grown and become an industry leader". After Zhou Xuelong passed away, his wife Sun Siwei and daughter Zhou Hanyu took over. In the past 12 years, the mother and daughter have obviously lived up to Zhou Xuelong's expectations, and today their company landed in the capital market and was listed on the Shanghai Stock Exchange.
The public offering of 58.88 million shares, all of which are new shares issued to the public. The issue price is 16.80 yuan per share. This morning, the new stock Dinglong Technology opened high, up more than 113%, with a turnover of 229 million yuan, a turnover rate of 11.16%, and a market value of 8.455 billion yuan.
The founder was admitted to university at the age of 15
At the age of 22, he became the youngest factory director in the history of Haining
Dinglong Technology was first founded by Zhou Xuelong in 2007. Zhou Xuelong was born in 1963 in Haining, a fur-rich city.
Zhou Xuelong's personal experience is legendary. In 1978, 15-year-old Zhou Xuelong was admitted to Zhejiang Institute of Technology (the predecessor of Zhejiang University of Technology) and became the youngest student in the class. After graduating from university, Zhou Xuelong was assigned to the Haining Chemical Plant. Not only did he become the first university student in the factory, but he was also appointed director of the Haining Chemical Plant at the age of 22, which was also the youngest director in Haining's history.
However, Zhou Xuelong did not choose to hold this "iron rice bowl" steadily. Instead, after three years as a factory director, he quit his job and went to sea to start a trading company engaged in the trading of chemical products.
According to the "Metropolis Express" report that year, Zhou Xuelong's wife Sun Siwei worked as a salesman in the Ningbo Post and Telecommunications Bureau in her early years, and after the two fell in love, they were strongly opposed by Sun's parents. Sun Siwei's parents are both state cadres, and their rank is not low, no matter what, they refuse to promise that their future son-in-law is self-employed. But after meeting, Sun Siwei's parents' attitude changed.
(Click on the picture to enlarge it, you can see the express report at that time)
According to Sun Siwei's cousin's recollection, her first impression of Zhou Xuelong was that this person was very elegant, like a scholar, not at all like a businessman.
Fighting lung cancer for 14 years, he still works overtime
He even went abroad to negotiate business and led the company to grow steadily
Unfortunately, Zhou Xuelong was diagnosed with lung cancer in 1997. At this time, he has brought the annual output value of the enterprise to nearly 100 million yuan, and is in the rising period of his career. So, this year, his wife Sun Siwei began to start a business with Zhou Xuelong. Four years later, Zhou Xuelong entered the advanced stage of lung cancer, but with his strong desire to survive and perseverance, he underwent chemotherapy 23 times, fought lung cancer for 14 years, and still went to work on time for more than 10 years in his life, worked overtime, and even went abroad to negotiate business.
In 2007, Dinglong was formally established. At this time, although 10 years have passed since Zhou Xuelong was diagnosed with lung cancer, Dinglong Technology led by him has achieved steady growth.
Especially in the last four years of his life, Zhou Xuelong also relied on his entrepreneurial enthusiasm to win important customers such as L'Oreal and Henkel for Dinglong Technology. To this day, these brands are still the backbone customers of Dinglong Technology.
On July 22, 2011, Zhou Xuelong's life came to an end at the age of 48. Since then, his wife Sun Siwei and daughter Zhou Hanyu have become the actual controllers of Dinglong Technology.
As of the signing date of the listing announcement, the controlling shareholder of the company is Zhejiang Dinglong New Materials Co., Ltd. (hereinafter referred to as "Dinglong New Materials"), which directly holds 166,640,000 shares of the company, with a shareholding ratio of 94.34% before the issuance. Sun Siwei holds 77.00% of the equity of Dinglong New Materials and serves as an executive director, holds 18.66% of the capital contribution of Hangzhou Dingyue and serves as the executive partner, and Sun Siwei controls 100% of the company's shares by controlling Dinglong New Materials and Hangzhou Dingyue. Zhou Hanyu is the daughter of Sun Siwei, holds 0.14% of the capital contribution of Hangzhou Dingyue and serves as a director of the company. Therefore, Sun Siwei and Zhou Hanyu are the actual controllers of the company.
Image source: Dinglong Technology prospectus
Wife and daughter took over for 12 years
The company is finally in the spotlight
Under Sun Siwei's control, Dinglong Technology, which has been developed for 12 years, is very different from when Zhou Xuelong was at the helm. At present, it has become a high-tech enterprise mainly engaged in the research and development, production, sales and trade of fine chemical products with a production base, sales company and enterprise research institute in Hangzhou, and a state-level specialized and new "little giant" enterprise.
At present, Dinglong Technology's revenue is mainly divided into three sources, namely hair dye raw materials, plant protection materials and special engineering materials monomer plates, all of which belong to the fine chemical industry, mainly through the purchase of raw materials such as oil, coal and minerals in the upstream of the industry, and then sell them after processing.
In the past three years, Dinglong Technology's revenue was 643 million yuan, 701 million yuan and 830 million yuan respectively, and its net profit was 81 million yuan, 90 million yuan and 153 million yuan respectively, an increase of 90% in three years. Among them, the raw materials of hair dye in the old business, as the pillar of Dinglong Technology, have always accounted for the highest proportion, basically stable at about 70%, and there has been a slight increase.
According to the statistics of Dinglong Technology, L'Oreal, Schwarzkopf (a brand owned by Henkel), Wella (a brand owned by Coty/Wella), Lijie (a brand owned by Kao) and other brands occupy half of the global hair dye market.
L'Oreal has been the largest customer of Dinglong Technology for many years, accounting for nearly 20% of its revenue, and Henkel and Kodi/Wella can also account for more than 20% of Dinglong Technology's revenue every year. The related products supplied by Dinglong Technology to these manufacturers account for 30%-50% of their total demand.
According to the prospectus, overseas business revenue accounted for more than 85% in the past three years, of which Europe, Asia and North America were the main sales areas.
Dinglong Technology raised a total of 989.184 million yuan in this issuance, which will be used for an annual output of 1,320 tons of special material monomers and hairdressing additives, and supplementary working capital projects.
In the future, whether it can stabilize the leader and stabilize the right to speak in the "small and scattered" hair dye raw material industry is a long-term problem that Dinglong Technology needs to think about. At the same time, before the listing, Dinglong Technology may have set new sights on the monomer sector of special engineering materials. Under the background of high-performance materials and key strategic materials being affected by many aspects, the layout and development of Dinglong Technology in this field are also worth looking forward to.