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

From its roots as an eco-friendly textile dye maker founded on June 13, 1970 to a public company listed as 600352 on the Shanghai Stock Exchange, Zhejiang Longsheng Group has transformed into a diversified industrial powerhouse with a market capitalization of ¥33.38 billion, broad global reach and a strategic mix of chemicals, real estate and auto parts; in 2024 Longsheng reported revenue of ¥15.88 billion and net income of ¥2.07 billion, while commanding nearly 21% of the global dye market and pressing forward with innovations (30+ new products in 2022), international manufacturing across 18 factories in 12 countries, and the full acquisition of DyStar to solidify its position as a dominant player.

Zhejiang Longsheng Group Co.,Ltd (600352.SS) - Intro

• 1970 - Company established focused on eco-friendly textile dyes and related chemicals.
• 2003 - Listed on the Shanghai Stock Exchange (ticker: 600352), accessing public capital markets to fund expansion.
• 2012 - Reported revenue of ¥7.649 billion, reflecting robust growth driven by expanded chemical product lines.
• 2015 - Entered real estate development to diversify revenue streams beyond chemicals.
• 2022 - Launched over 30 new products; management attributed a 15% increase in total sales to these product introductions and marketing expansion.
• November 2025 - Completed acquisition of the remaining 37.57% stake in DyStar Global Holdings, achieving full ownership and settling a multi-year legal dispute tied to the DyStar relationship.

• Mission: Develop sustainable specialty chemicals and materials while expanding into higher-margin adjacent industries.
• R&D emphasis: New product launches (30+ in 2022) and eco-friendly formulations to meet stricter environmental and end-customer requirements.
• Diversification: Maintain chemical manufacturing as core cash-generating operations while growing property development and advanced materials for margin uplift and asset appreciation.

• Core manufacturing: Production and sale of dyestuffs, pigments, and specialty chemicals to textile, coatings, plastics and other industrial customers.
• Product development: In-house R&D translates into incremental product launches that drive volume and price realization.
• Vertical integration: Procurement and processing of chemical intermediates to reduce input costs and secure raw material availability.
• Real estate arm: Land development, property sales and leasing provide non-cyclical cash flow and asset diversification.
• Acquisitions & partnerships: Strategic M&A (e.g., DyStar full acquisition in 2025) to secure technology, customers and global distribution networks.

• Product sales: Primary revenue from bulk and specialty chemical products sold domestically and internationally.
• Value-added specialty segments: Higher-margin specialty dyes, pigments and functional additives introduced through R&D.
• Real estate sales and leasing: Development projects and property holdings contribute capital gains and recurring rental income.
• Aftermarket & services: Technical support, formulation services and long-term supply contracts with textile and industrial customers.

• Chemicals & Dyes - manufacturing and global distribution
• Advanced Materials - specialty pigments, functional additives
• Real Estate - development, sales, and leasing

Zhejiang Longsheng Group Co.,Ltd (600352.SS): History

Zhejiang Longsheng Group Co.,Ltd (600352.SS) was founded in the 1990s and grew from a regional textile and yarn manufacturer into an integrated industrial group focused on polyester, chemical fibers, and textile supply-chain services. Key growth phases included capacity expansion in polyester staple and filament, downstream textile integration, and vertical moves into raw-material processing and recycling technologies. The company listed on the Shanghai Stock Exchange and has since emphasized modernization, efficiency and market diversification.

• Core industries: polyester fibers, textiles, chemical intermediates, and textile supply-chain services.
• Strategic moves: downstream integration, capacity scale-up, and technology-driven efficiency improvements.
• Geographic focus: domestic China production with export channels for downstream textile products.

Ownership Structure

• Significant insider stake (32.83%) - suggests management/founders retain control and alignment with shareholders.
• Institutional investors hold a modest portion (7.09%), indicating limited external concentration from funds as of July 2025.
• Low beta (0.66) - stock exhibits lower volatility than the broader market, often attractive to risk-averse investors.

Mission

The company aims to be a leading integrated polyester and textile solutions provider focused on sustainable production, technological upgrading, and value-added downstream services. See corporate guiding statements here: Mission Statement, Vision, & Core Values (2026) of Zhejiang Longsheng Group Co.,Ltd.

How It Works & Makes Money

• Raw-material processing: produces polyester chips, staple fibers and filament yarns sold to textile manufacturers and industrial users.
• Downstream textile operations: provides fabrics and finished textile products, capturing higher margins through vertical integration.
• Specialty chemicals and intermediates: supplies chemical inputs that complement fiber production and improve margins.
• Supply-chain services: offers logistics, dyeing/finishing and OEM/ODM services to apparel and home-textile clients.
• Recycling and sustainability initiatives: developing recycled polyester feedstocks to meet rising demand and regulatory pressures.

Zhejiang Longsheng Group Co.,Ltd (600352.SS): Ownership Structure

• Mission: Become a global leader in specialty chemicals through innovation and sustainable development.
• Core values: scientific innovation, environmental responsibility, customer-centricity, quality and professional service.
• Customer metrics: 92% customer satisfaction in the latest company survey.
• Global reach: sales and technical support presence and agencies in 50 countries and regions.

• Primary revenue drivers: production and sale of specialty chemical products and related value‑added services (technical support, customized formulations, after‑sales services).
• Vertical integration: in-house R&D, manufacturing, and downstream customer support to capture margin across the value chain.
• Global distribution: export channels and local agencies that facilitate market access and recurring service contracts.
• Sustainability premium: eco‑friendly product lines and lower‑emission processes that support price differentiation in regulated markets.

• Publicly listed on the Shanghai Stock Exchange (600352.SS); ownership split between the founding/controlling shareholders, institutional investors, and public float.
• Strategic investors and long‑term institutional holders provide capital stability for R&D and capacity investment cycles.
• Management and board alignment: executive incentives tied to sustainability KPIs and innovation milestones to reinforce mission-driven growth.

Zhejiang Longsheng Group Co.,Ltd (600352.SS): Mission and Values

• Chemical manufacturing - the historical and largest pillar, producing dyes, dye intermediates, polymer additives, inorganic chemicals and specialty chemical products for textiles, coatings, plastics and other industries.
• Real estate development - development and sales of residential and commercial projects and property management that provide recurring and one-off cash inflows supporting group liquidity.
• Auto parts production - growing operations focused on components for new energy vehicles (NEV), including new suppliers, dedicated production lines and strategically secured orders for EV makers.

• Nearly 100 subsidiaries across China and overseas, with major regional presence in Zhejiang, Jiangsu, Sichuan, Inner Mongolia, Xinjiang, Jiangxi, Guangdong, plus corporate or holding entities in Hong Kong, Singapore and India.
• 18 factories in 12 countries, combining domestic production bases and overseas manufacturing to serve global customers and mitigate regional risks.

• Chemical portfolio: Dyes, intermediates, polymer additives, inorganic chemicals and specialty reagents-sold to textile, leather, plastics, coatings and advanced materials sectors.
• Real estate: Land development, property sales and long-term rental/management revenue streams.
• Auto parts: Precision stamped parts, structural components and assemblies for electric vehicles; segment experiencing higher capex and order intake in recent years.

• Chemicals: margin capture through scale manufacturing of dyes and intermediates, backward integration on key feedstocks, specialty high-margin additives, and long-term supply contracts with textile and polymer customers.
• Real estate: development profit on land parcels, incremental cash from pre-sales, and recurring revenue from property management and leasing portfolios.
• Auto parts: contract manufacturing for OEMs and tier-1 suppliers; revenue grows via volume contracts for NEV platforms, with higher initial capex followed by predictable order-driven cash flows.

• Reinvest chemical cashflows to expand specialty product lines and to modernize environmental controls.
• Targeted capex in NEV parts capacity to capture OEM supply contracts and scale production efficiency.
• Selective real estate development to monetize non-core land assets while retaining stable rental income in strategic locations.

• Geographic diversification (18 factories, 12 countries) reduces single-market exposure and improves service to global customers.
• Vertical integration in chemical feedstocks and intermediates helps protect margins against raw-material volatility.
• Growing NEV parts presence positions the company in a higher-growth, technology-driven market, though it increases capital intensity and dependency on OEM cycles.

Zhejiang Longsheng Group Co.,Ltd (600352.SS): How It Works

• Core industrial segment: manufacture and sale of dyes, dye intermediates and related chemical specialties to textile and specialty chemical customers.
• Automotive components: production of parts and modules, increasingly targeting new energy vehicle (NEV) suppliers through targeted capex and contract wins.
• Real estate development: residential and commercial projects that monetize land holdings and generate recurring and one-off revenues.
• Vertical integration and scale: in-house chemical feedstock processing, formulation, and downstream component assembly reduces input costs and improves margin capture.

• Sales to textile industry: recurring B2B contracts for dyes and intermediates, often priced on volume and long-term supply agreements.
• Auto parts contracts: OEM and tier‑1 supplier agreements, with volume ramps tied to NEV production cycles.
• Real estate sales and investment income: project completions and lease yields provide diversification against cyclical industrial demand.

• High-volume chemical sales: steady working-capital turnover and bulk pricing economies across dye lines.
• Margin uplift from vertical integration: control of intermediate processes reduces procurement cost and improves gross margins.
• Strategic investment in NEV parts: capital expenditures and capacity expansion convert into higher-value long-term contracts.
• Property realization: land development and sales provide lump-sum cash inflows that supplement operating cash flow.

• The 2024 revenue of 15.88 billion yuan demonstrates modest top-line growth (3.79%), while a 32.36% jump in net income to 2.07 billion yuan indicates improved profitability and margin expansion.
• Diversified streams (chemicals, auto parts, real estate) reduce single-sector exposure and enable the company to reallocate capital toward higher-margin or faster-growing businesses.
• Investment focus on new energy vehicle components positions Longsheng to capture a larger share of automotive electrification supply chains, potentially increasing order book visibility and long-term revenue stability.

Zhejiang Longsheng Group Co.,Ltd (600352.SS): How It Makes Money

• Core dye & pigment production - large-scale manufacturing for global textile and industrial customers; scale advantages after the acquisition of DyStar Global Holdings (2019).
• Textile auxiliaries & specialty chemicals - value-added formulations and downstream products sold to mills and finished-goods manufacturers.
• Global distribution & customer contracts - direct sales and long-term supply agreements to ~7,000 customers worldwide, securing recurring revenue.
• New energy vehicle parts and downstream industrial diversification - emerging revenue stream from precision parts and components for the NEV supply chain.
• R&D, sustainability services and licensing - innovation-driven sales, process optimization services, and environmentally focused product lines that meet stricter regulatory standards.

• Global reach: serves approximately 7,000 customers worldwide.
• Market share: accounts for nearly 21% of the global dye market following consolidation and the DyStar acquisition.
• Vertical integration: raw-material-to-formulation capabilities enhance margins and supply reliability.
• Sustainability alignment: investments in cleaner production and waste treatment support regulatory compliance and premium contracts.

• Scale leadership post-DyStar: stronger pricing power, broader product mix and global sales network.
• Integrated supply chain: lower input cost volatility and better margin capture through vertical integration.
• R&D and sustainability: product premium and regulatory resilience from eco-friendly processes and innovations.
• Diversification into NEV parts: new end-markets reduce reliance on textile cyclicality and open higher-growth opportunities.

• Market consolidation and Longsheng's ~21% global share position it to capture further volume and pricing leverage.
• Continued investment in sustainable production and energy-efficient processes should support regulatory access and customer retention.
• Expansion in NEV parts offers incremental revenue growth and margin diversification as automotive electrification progresses.