Zhejiang Longsheng(SH:600352) Chang Jiang Shang Bao·2026-01-05 23:53Core Viewpoint - Zhejiang Longsheng has successfully completed an overseas acquisition to resolve a dispute, spending approximately $702 million (over 4.9 billion RMB) to acquire the remaining 37.57% stake in Dystar Global Holdings, a global leader in dye production [1][4]. Group 1: Acquisition Details - The acquisition was prompted by a court ruling requiring the overall sale of Dystar's shares, leading Zhejiang Longsheng to act as the controlling shareholder [1][3]. - Dystar is a profitable company, with projected earnings of approximately $116 million and $62.96 million for 2024 and the first three quarters of 2025, respectively [4]. - The acquisition is expected to enhance Zhejiang Longsheng's net profit attributable to shareholders [2][5]. Group 2: Financial Impact - The acquisition will not significantly impact Zhejiang Longsheng's cash flow, as the company had cash reserves of 20.72 billion RMB and interest-bearing liabilities of around 18 billion RMB as of September 2025 [2]. - Zhejiang Longsheng's net profit attributable to shareholders for the first three quarters of 2025 was approximately 1.4 billion RMB, indicating a 3.23% year-on-year increase [10]. - The company has maintained a strong financial position, with a debt-to-asset ratio of 51.18% and negative financial expenses of 147 million RMB for the first three quarters of 2025 [10]. Group 3: Historical Performance - Zhejiang Longsheng has demonstrated strong profitability, with annual net profits exceeding 1 billion RMB for 12 consecutive years from 2013 to 2024 [9]. - Despite fluctuations in performance, the company achieved a net profit of 2.03 billion RMB in 2024, marking a 32.36% year-on-year increase [8]. - The company has consistently generated positive operating cash flow, with a net cash flow of 5.56 billion RMB for the first three quarters of 2025, reflecting a 46.71% year-on-year growth [10].