Zhejiang Longsheng Group Co.,Ltd: history, ownership, mission, how it works & makes money

A Brief History of Zhejiang Longsheng Group Co.,Ltd

Zhejiang Longsheng Group Co., Ltd., established in 1994, specializes in the production of dyes, chemicals, and textile auxiliaries. Headquartered in the Zhejiang Province of China, the company has grown to become one of the leading manufacturers in its industry. Longsheng went public in 2002 and trades on the Shanghai Stock Exchange under the ticker symbol 600352.

In 2022, Longsheng reported a total revenue of approximately RMB 9.25 billion, marking a year-on-year increase of about 10.5%. The company's net profit attributable to shareholders reached RMB 770 million, which indicates a net profit margin of around 8.3%.

Longsheng's product portfolio includes a wide range of dyestuffs, with a focus on reactive dyes and disperse dyes. The company operates multiple production facilities, employing over 8,000 employees. Its efforts in research and development (R&D) have led to the introduction of eco-friendly products, adhering to stricter environmental regulations.

In 2021, Longsheng invested approximately RMB 300 million in R&D, which accounted for about 3.6% of its annual revenue. The company’s commitment to sustainability is underscored by its green production processes, aimed at reducing water and energy consumption by 20% by 2025.

As of October 2023, Longsheng's stock price hovered around RMB 23.45, reflecting a market capitalization of approximately RMB 25.5 billion. The company shows a price-to-earnings ratio (P/E) of 32, which indicates a premium valuation compared to industry averages.

Longsheng’s competitive landscape includes notable industry players such as Huntsman Corporation and BASF. Despite this competition, the company maintains a strong market position within China due to its extensive distribution network and brand reputation.

Overall, Zhejiang Longsheng Group's financial resilience, strategic investments in sustainability, and innovation in product offerings solidify its significant role in the global chemical industry.

A Who Owns Zhejiang Longsheng Group Co.,Ltd

Zhejiang Longsheng Group Co., Ltd., publicly traded on the Shanghai Stock Exchange under the ticker symbol 600352, primarily operates in the dye and chemical industry. As of the latest data available in 2023, the company's ownership structure showcases a blend of institutional and individual shareholders.

The largest shareholder is Zhejiang Longsheng Holding Group Co., Ltd., which owns approximately 40.95% of the total shares. Institutional investors hold around 30% of the shares, with significant stakes including large investment firms and mutual funds. Notably, domestic institutional ownership remains strong, indicating confidence in the company's prospects.

Individual investors represent a substantial portion of the shareholder base, accounting for approximately 20%. This demographic typically includes retail investors who have invested based on performance trends and market activity.

Below is a detailed table outlining the major shareholders and their respective ownership percentages:

In the fiscal year 2022, Zhejiang Longsheng recorded a net profit of approximately ¥3.18 billion, with total revenue reaching around ¥21.6 billion. This growth reflects resilience despite industry-wide challenges.

The company's market capitalization as of October 2023 stands at approximately ¥42 billion, a testament to investor sentiment and market positioning. Key competitors in the industry include companies like Dainichiseika Color & Chemicals Mfg. Co., Ltd. and Huntsman Corporation, which influence market dynamics.

Furthermore, as of Q3 2023, 浙江龙盛 (Zhejiang Longsheng) has a Price-to-Earnings (P/E) ratio of 13.2, showing potential for future growth relative to its earnings. Analysts estimate a projected growth rate of 5% over the next five years, making it an attractive option for growth-focused investors.

Zhejiang Longsheng Group Co.,Ltd Mission Statement

Zhejiang Longsheng Group Co., Ltd. (stock code: 600352), established in 1993, positions itself as a leader in the dye and chemical industry. The company’s mission is to deliver high-quality products while promoting sustainable development practices. With a focus on technological innovation and customer-centric services, Longsheng aims to enhance its global competitiveness.

In 2022, Longsheng Group reported a revenue of RMB 19.37 billion, which reflects a growth of 12.4% from the previous year. The net profit attributable to shareholders was approximately RMB 1.72 billion, marking an increase of 15.6%.

The company manufactures a wide range of products, including disperse dyes, acid dyes, and textile chemicals. In the pursuit of excellence, Longsheng invests heavily in research and development, allocating about 5% of its annual revenue to R&D activities. This commitment is reflected in the company’s patent portfolio, which includes over 300 patents globally.

Longsheng also emphasizes its commitment to environmental sustainability. In recent years, the company has reduced its carbon emissions by 18% and aims to further decrease this by an additional 15% by 2025. This aligns with their mission to operate responsibly within the industry and contribute to a greener planet.

The company’s strategic focus is on expanding its operational capabilities and market reach. In 2023, Longsheng plans to increase its production capacity by 20%, driven by the growing demand for eco-friendly dyes and textiles. Moreover, Longsheng has established strategic partnerships with key players in Europe and North America, targeting a revenue increase of 10% from international markets over the next two years.

In summary, Zhejiang Longsheng Group Co., Ltd. aims to uphold its mission by driving innovation, ensuring quality, and adhering to sustainable practices, positioning itself not just as a market leader but also as a responsible corporate citizen. The company's ongoing commitment to financial growth, product development, and environmental sustainability underpins its operational ethos.

How Zhejiang Longsheng Group Co.,Ltd Works

Zhejiang Longsheng Group Co., Ltd. operates primarily in the specialty chemicals sector, focusing on dye and pigment production. Founded in 1994 and headquartered in Hangzhou, the company has grown to become one of the largest chemical companies in China. As of 2023, Longsheng reported a revenue of approximately RMB 23.3 billion (around $3.6 billion), a significant increase from RMB 19.8 billion in 2022.

The company's operations are segmented into various product lines, with a strong emphasis on disperse dyes, acid dyes, and customer-specific colored products. In 2022, Longsheng's disperse dye segment accounted for about 58% of total revenues, highlighting the company’s significant focus on this high-demand product category.

Operational Efficiency

Longsheng employs over 4,000 staff members and operates multiple manufacturing facilities across China, including advanced production lines that utilize state-of-the-art technology. The company emphasizes efficiency, aiming for a production capacity of 100,000 tons of dyes annually.

Financial Performance Metrics

In 2023, the company's net profit reached RMB 3.1 billion, with a gross margin of 22.5%. This improvement is attributed to enhanced production efficiencies and increased demand for eco-friendly dye products.

Market Position and Growth Strategy

Longsheng holds a competitive position in both domestic and international markets. The company's export revenue constituted approximately 35% of its total sales in recent years, targeting markets in Europe and North America, where demand for high-quality dyes is steadily increasing.

Sustainability Initiatives

The company has also invested in sustainable manufacturing processes, reducing water usage by 30% and emissions by 25% over the past few years. These efforts align with global trends favoring environmentally sustainable production methods.

Research and Development

Longsheng allocates about 3% of its annual revenue to research and development, focusing on innovative dye formulations and sustainable chemical processes. This commitment has led to over 80 patents in specialized chemical applications.

In the fiscal year of 2023, Zhejiang Longsheng Group’s stock price rose to approximately RMB 18.50 per share, reflecting a 20% increase compared to the previous year, significantly outperforming the sector average of 12%.

The overall performance and strategic initiatives of Zhejiang Longsheng Group Co., Ltd. showcase its ability to adapt to market demands while achieving solid financial growth and maintaining a focus on sustainability and innovation.

How Zhejiang Longsheng Group Co.,Ltd Makes Money

Zhejiang Longsheng Group Co., Ltd. is a leading manufacturer in the textile dyestuff and chemical industries. The company primarily generates revenue through the production and sale of dyes, pigments, and other chemical products used in various applications, including textiles, coatings, and plastics.

In 2022, Zhejiang Longsheng reported a revenue of approximately RMB 9.01 billion, reflecting a year-on-year growth of 8.6%. The gross profit margin stood at 20.4%, demonstrating effective cost management in production.

Revenue Streams

• Dyes: The company specializes in reactive dyes and disperse dyes, contributing significantly to its revenue. The sales from dyes accounted for about 66% of total revenue in 2022.
• Pigments: Longsheng also produces pigments, primarily for the coatings and plastics industries, which made up roughly 20% of total revenue.
• Other Chemical Products: This category includes textile auxiliaries and other specialty chemicals, contributing the remaining 14% to revenue.

Key Financial Metrics

The following table highlights key financial metrics from Zhejiang Longsheng’s recent performance:

Market Position and Competitive Advantage

Zhejiang Longsheng Group holds a strong position in the market, driven by its extensive R&D capabilities and a robust supply chain. The company invests heavily in innovation, with over 5% of revenue allocated to R&D annually, focusing on developing eco-friendly dyes and reducing production costs.

The company exports to more than 50 countries, enhancing its global presence and diversifying its revenue sources. In 2022, international sales accounted for about 30% of total revenue, highlighting its competitive edge in the global market.

Investment in Production Facilities

Longsheng continues to expand its production capacity. The recent investment of around RMB 500 million in new manufacturing facilities aims to increase annual production capacity by 30,000 tons of dyes by 2024, thus catering to the growing demand.

Overall, Zhejiang Longsheng Group Co., Ltd. leverages its strong market position, diversified product offerings, and commitment to innovation to drive its revenue and create sustained profitability.