Sichuan Development Lomon Co., Ltd.: history, ownership, mission, how it works & makes money

Sichuan Development Lomon Co., Ltd.: history, ownership, mission, how it works & makes money

CN | Basic Materials | Chemicals | SHZ

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A Brief History of Sichuan Development Lomon Co., Ltd.

Sichuan Development Lomon Co., Ltd. was established in 2000 and is headquartered in Chengdu, Sichuan Province, China. The company specializes in the production and marketing of titanium dioxide, a crucial pigment used in various applications, including coatings, plastics, and paper. It operates under the umbrella of Sichuan Development Holding Co., Ltd., which holds a significant share of its equity.

In its initial phase, the company focused on research and development to establish itself in the titanium industry. By 2005, Sichuan Development Lomon had achieved annual production capacity of 100,000 tons of titanium dioxide, positioning itself as a leading manufacturer in the region.

By 2010, the company expanded its production facilities to increase capacity to 200,000 tons. This expansion was in response to rising demand both domestically and internationally. The company now exports to over 40 countries, including major markets in Europe and North America.

In 2015, Sichuan Development Lomon went public on the Shenzhen Stock Exchange. The IPO raised approximately 1.5 billion RMB (around 230 million USD). This influx of capital facilitated further investments in technology upgrades and capacity enhancements.

The company reported a remarkable performance in 2020, with revenue reaching approximately 3.0 billion RMB (around 460 million USD) and a net profit of 300 million RMB (about 46 million USD), reflecting an increase of 20% year-over-year. The gross margin stood at 30%, indicating healthy profitability.

Year Revenue (RMB) Net Profit (RMB) Production Capacity (tons)
2005 Not Available Not Available 100,000
2010 Not Available Not Available 200,000
2015 Not Available Not Available 200,000
2020 3.0 billion 300 million 200,000

In 2021, the company continued its upward trajectory, with reported revenues soaring to 3.5 billion RMB (approximately 540 million USD). The net profit for the same period was noted at 350 million RMB (about 54 million USD), a further increase of 16.67% compared to 2020.

The company's strategic focus on sustainable practices has positioned it favorably in the market, launching initiatives to reduce production waste and enhance energy efficiency. As of 2022, the company announced plans to expand its production capacity to 300,000 tons by integrating advanced production techniques and facilities.

As of March 2023, Sichuan Development Lomon's market capitalization reached approximately 10 billion RMB (around 1.55 billion USD), highlighted by a robust 20% increase in stock value over the previous year. The global demand for titanium dioxide continues to grow, driven by increasing use in various industries, particularly in automotive and construction.

Current market dynamics suggest that Sichuan Development Lomon is well-aligned to capitalize on growth opportunities, considering the ongoing expansion in renewable energy and eco-friendly products. The company's commitment to innovation and quality is expected to enhance its competitive edge in the global market.



A Who Owns Sichuan Development Lomon Co., Ltd.

Sichuan Development Lomon Co., Ltd. is a public company listed on the Shenzhen Stock Exchange under the ticker symbol 002078. The ownership structure of the company is characterized by several major shareholders, including institutional investors, state-owned enterprises, and private individuals.

As of the latest available data from the company's annual report for the fiscal year ending December 31, 2022, the ownership breakdown is as follows:

Shareholder Ownership Percentage Shares Held
Sichuan Development Holding Group Co., Ltd. 21.15% 156,382,000
China National Chemical Corporation 10.25% 75,000,000
Shenzhen Huarui Investment Co., Ltd. 5.12% 37,000,000
Public Float (Institutional and Retail Investors) 63.48% 457,618,000
Others 1.00% 7,000,000

The largest shareholder, Sichuan Development Holding Group Co., Ltd., is a state-owned enterprise that plays a pivotal role in the governance and strategic direction of Sichuan Development Lomon. The presence of significant state ownership influences the company’s policies and operational strategies.

In terms of market capitalization, as of October 2023, Sichuan Development Lomon Co., Ltd. had a market cap of approximately ¥22.56 billion (around $3.5 billion USD). The company reported net profits of ¥1.35 billion for the year 2022, marking a growth of 15.2% compared to the previous year.

Additionally, the company’s revenue for 2022 was reported at ¥8.46 billion, indicating a solid demand for its products in both domestic and international markets. Sichuan Development Lomon is primarily engaged in the production of chemical products, including titanium dioxide and various specialty chemicals, which are essential in multiple industries such as coatings, plastics, and paper.

Investors and analysts closely monitor Sichuan Development Lomon's financial performance, shareholder composition, and market trends, as these factors can significantly impact the company's stock performance and strategic initiatives going forward.



Sichuan Development Lomon Co., Ltd. Mission Statement

Sichuan Development Lomon Co., Ltd. focuses on producing high-quality specialty chemicals, particularly in the field of titanium dioxide (TiO2). Their mission statement emphasizes the commitment to sustainable development and innovation, aimed at maximizing customer satisfaction while minimizing environmental impact.

The company strives to lead the market in TiO2 production by leveraging advanced technology and efficient processes. With an annual production capacity exceeding 300,000 tons of TiO2, Sichuan Development Lomon aims to supply industries such as coatings, plastics, and inks globally.

Aspect Data
Annual Production Capacity (TiO2) 300,000 tons
Revenue (2022) ¥4.5 billion
Net Profit Margin (2022) 9.3%
Market Share in China (TiO2) 15%
Research and Development Investment (2022) ¥200 million
Employee Count 1,200

The company places a strong emphasis on sustainable practices, targeting a 30% reduction in carbon emissions by 2030 compared to the 2020 baseline. They invest significantly in R&D, aligning with their mission to innovate and enhance product offerings.

In its operations, Sichuan Development Lomon integrates state-of-the-art technologies, ensuring that the production processes are not only efficient but also environmentally conscious. Their mission also encompasses the welfare of employees and communities, focusing on creating a positive impact through corporate social responsibility initiatives.

Sichuan Development Lomon is also exploring international markets, aiming for 20% of total sales to originate from overseas by 2025, which reflects their ambition to expand influence beyond China.

By committing to these principles, Sichuan Development Lomon Co., Ltd. reinforces its mission of being a leader in the specialty chemicals industry while ensuring long-term sustainability and competitiveness.



How Sichuan Development Lomon Co., Ltd. Works

Sichuan Development Lomon Co., Ltd., operating under the ticker symbol 002789.SZ, is a prominent player in the chemical industry, particularly known for its production of titanium dioxide (TiO2). The company has carved out a significant market share both domestically and internationally.

In 2022, Sichuan Development Lomon reported a total revenue of approximately RMB 12.1 billion, marking an increase of 14.3% from the previous year. The net profit attributable to shareholders for the same year stood at about RMB 2.3 billion, representing a year-on-year growth of 20.5%.

The company’s operational structure is divided into several key segments:

  • Production of Titanium Dioxide
  • Production of Chemical Products
  • Research and Development
Segment Revenue (RMB Billion) Growth Rate (%)
Titanium Dioxide 8.5 15.0
Chemical Products 2.4 10.0
R&D Investments 1.2 30.0

The company’s production capacity for titanium dioxide reached approximately 400,000 tons per year as of 2022. Sichuan Development Lomon has adopted a sulfate process for TiO2 production, positioning itself as one of the largest sulfate process manufacturers in China.

Geographically, the company exports approximately 30% of its products, with major markets including North America, Europe, and Southeast Asia. The export revenue generated in 2022 was around RMB 3.6 billion.

In terms of financial health, Sichuan Development Lomon reported a total asset value of about RMB 18.5 billion as of the end of 2022. The company has a debt-to-equity ratio of 1.1, indicating a balanced approach to leveraging for growth while maintaining substantial equity preservation.

Recent strategic expansions include the establishment of a new production line in 2023, expected to boost output capacity by an additional 100,000 tons annually. This investment amounts to approximately RMB 1.5 billion.

The firm has also placed a strong emphasis on sustainability, aiming to reduce its carbon emissions by 25% by 2025. This initiative is designed to meet both regulatory requirements and market demand for environmentally friendly products.

Key Financials 2021 2022
Total Revenue (RMB Billion) 10.6 12.1
Net Profit (RMB Billion) 1.9 2.3
Total Assets (RMB Billion) 16.5 18.5

In conclusion, Sichuan Development Lomon Co., Ltd. continues to enhance its operational capabilities and market presence through strategic investments, expanding production capacity, and focusing on innovation in the chemical industry. The company remains well-positioned to navigate market demands and the evolving regulatory landscape.



How Sichuan Development Lomon Co., Ltd. Makes Money

Sichuan Development Lomon Co., Ltd. (SDL) operates primarily in the chemical industry, focusing on the production and sale of various high-performance materials, including titanium dioxide, sodium carbonate, and other chemical products. The company's revenue streams can largely be categorized into three main segments: titanium dioxide production, chemical products, and international sales.

Revenue from Titanium Dioxide

In 2022, Sichuan Development Lomon reported a revenue of approximately RMB 6.23 billion from its titanium dioxide segment alone. This represented a year-on-year increase of 15% compared to 2021, driven by higher demand in both domestic and international markets.

Year Titanium Dioxide Revenue (RMB billion) Year-on-Year Growth (%)
2020 5.15 -
2021 5.43 5%
2022 6.23 15%

Chemical Products

The chemical products division, which includes sodium carbonate and various chemical additives, contributed approximately RMB 3.58 billion in revenue in 2022. This segment experienced growth of 10% from the previous year, boosted by increased production capacity and favorable market conditions.

Year Chemical Products Revenue (RMB billion) Year-on-Year Growth (%)
2020 3.00 -
2021 3.25 8.3%
2022 3.58 10%

International Sales Performance

Exports have become a pivotal part of Sichuan Development Lomon’s strategy. In 2022, international sales accounted for roughly 30% of total revenue, generating about RMB 2.77 billion. This increase was supported by the company's efforts to penetrate new markets in Southeast Asia and Europe.

Cost Management and Profitability

The company's cost of goods sold (COGS) for 2022 was reported at about RMB 7.87 billion, resulting in a gross profit margin of approximately 27%. Effective cost management strategies, including technology optimization and raw material sourcing, have significantly enhanced profitability.

Year COGS (RMB billion) Gross Profit Margin (%)
2020 6.20 22%
2021 6.71 24%
2022 7.87 27%

Strategic Partnerships and Investments

Strategic partnerships with both domestic and foreign companies have allowed Sichuan Development Lomon to enhance its market presence. The joint venture established in 2021 with a European chemical firm shifted an additional RMB 1 billion in revenue by the end of 2022, emphasizing its role in expanding market reach.

Future Growth Prospects

Looking ahead, Sichuan Development Lomon projects a revenue growth rate of 12% to 15% annually over the next five years, driven by ongoing investments in R&D, expansion of production facilities, and a focus on sustainability within the chemical industry.

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