07.28.20
Bauhinia Variegata Ink and Chemicals Limited
27/F., Fortis Tower, 77-79 Gloucester Road
Wanchai, Hong Kong
Tel: +852 2675 2288,
+760 8652 2330
Fax: +852 2675 2345
www.yipsink.com
E-mail: LiJie@zs.yipsink.com, HuangJieWei@zs.yipsink.com
Sales: US$173 million (HKD 1,343,686,000); Yip’s Chemical’s consolidated sales were US$1.35 billion (HKD10.5 billion).
Major Products: Gravure inks, offset printing inks, screen printing inks, UV inks and environmentally-friendly inks used mainly in food and medicine packaging, tobacco packaging, offset and transfer printing; adhesives; dampening alcohol solution; cleanser.
Key Personnel: Kwong Kwok Chiu, GM; Lv Junxiong, sales director; Sun Jiefang, purchasing director; Xie Changgen, financial director; Li Jei, marketing director; Wu Zhao Wei, Shem Bin, Feng Wen Zhao, Mai Yun Cheng and Liao Hui, technical directors.
Number of Employees: 799 (ink business).
Comments: The past year was both a challenging as well as an exciting time for Bauhinia Variegata Ink and Chemicals Limited, the ink manufacturing subsidiary of Yip’s Chemical Holdings Limited. Bauhinia Variegata Ink is the largest domestic producer of inks in China, and is leading the way in environmentally friendly inks.
Company officials noted that the overall operating environment in 2019 was full of challenges. Nevertheless, the Group managed to pursue quality sales, optimize customer quality and tighten cost control.
“Profitability of our core businesses improved, symbolizing a healthier platform to drive further growth,” a company spokesperson reported. “Our ink business consistently set quality sales as its top priority. It carried out systematic improvements in its customer structure and product lines, which led to a reduction in sales revenue by 9% year-on-year to HK$1.34 billion, while gross profit margin rose by 4 percentage points.
“The operating profit of the ink business increased significantly to HK$93.8 million, representing a year-on-year increase of nearly 1.4 times,” the spokesperson added. “This was mainly due to the proper control of operating costs and the integration of production from three plants to two plants, which resulted in a total reduction of approximately HK$26 million in various expenses.” In order to broaden revenue sources, the company is expanding industrial inks applied to furniture and at home to seize market opportunities.
As Yip’s inks are primarily used in food packaging, the company noted that the COVID-19 pandemic’s impact on its business remains to be seen.
“The impact of the COVID-19 pandemic on our ink business is not obvious,” the company spokesperson observed. “It is mainly because the application of our inks is related to daily necessity products, like food and drinks, and the majority of our ink products are sold nationwide in the PRC market.”
The exciting news is that Yip’s is looking to spin off its ink business. The spin-off is subject to certain conditions including, but not limited to, approval from the Stock Exchange as well as the Group’s shareholders. As of this date, Bauhinia Variegata Zhejiang has not yet submitted any listing application with relevant regulatory authorities in the PRC.
“After years of growth and development, on May 28, 2020, Yip’s Chemical announced a proposed spin-off and separate listing of its ink business operated under Yip’s Ink & Chemicals (Group) Limited, an indirect wholly-owned subsidiary of Yip’s Chemical and the holding company of Bauhinia Variegata Ink & Chemicals (Zhejiang) Limited (“Bauhinia Variegata Zhejiang”), on the Shenzhen Stock Exchange,” the spokesperson said. “Bauhinia Variegata Zhejiang will become the listing vehicle and the holding company of the Group’s subsidiaries which are engaged in the ink business.
“We believe the proposed spin-off will be beneficial to the Group as a whole because it will provide capital to the ink business to meet its expansion needs; enhance the ink business’ profile amongst its customers, suppliers and other business partners; enable the ink business and the Group to have their own fundraising platforms to access both the debt and equity capital market; and enable investors to value the ink business and other remaining business of the Group on a standalone business, thereby reflecting the true intrinsic value of the respective business.”
Yip’s Chemical will continue to benefit from any potential upside of the ink business upon completion of the spin-off as Bauhinia Variegata Zhejiang will remain a subsidiary of the Group.
“We are the largest ink manufacturer in the PRC and one of the top 20 ink manufacturers internationally by annual sales in 2019,” the company spokesperson noted. “We see it as the right time to spin off the ink business and seek a separate listing on the Shenzhen Stock Exchange to further increase our market share and capitalize on our technical and product strength.
“2020 remains to be a challenging year and yet we are optimistic towards China’s domestic market,” the spokesperson added. “As China is recovering from COVID-19 and stepping up policies and incentives to improve the business climate and boost consumption, it is expected that the domestic demand will rebound gradually in the second half, which is favorable to our ink business.”
27/F., Fortis Tower, 77-79 Gloucester Road
Wanchai, Hong Kong
Tel: +852 2675 2288,
+760 8652 2330
Fax: +852 2675 2345
www.yipsink.com
E-mail: LiJie@zs.yipsink.com, HuangJieWei@zs.yipsink.com
Sales: US$173 million (HKD 1,343,686,000); Yip’s Chemical’s consolidated sales were US$1.35 billion (HKD10.5 billion).
Major Products: Gravure inks, offset printing inks, screen printing inks, UV inks and environmentally-friendly inks used mainly in food and medicine packaging, tobacco packaging, offset and transfer printing; adhesives; dampening alcohol solution; cleanser.
Key Personnel: Kwong Kwok Chiu, GM; Lv Junxiong, sales director; Sun Jiefang, purchasing director; Xie Changgen, financial director; Li Jei, marketing director; Wu Zhao Wei, Shem Bin, Feng Wen Zhao, Mai Yun Cheng and Liao Hui, technical directors.
Number of Employees: 799 (ink business).
Comments: The past year was both a challenging as well as an exciting time for Bauhinia Variegata Ink and Chemicals Limited, the ink manufacturing subsidiary of Yip’s Chemical Holdings Limited. Bauhinia Variegata Ink is the largest domestic producer of inks in China, and is leading the way in environmentally friendly inks.
Company officials noted that the overall operating environment in 2019 was full of challenges. Nevertheless, the Group managed to pursue quality sales, optimize customer quality and tighten cost control.
“Profitability of our core businesses improved, symbolizing a healthier platform to drive further growth,” a company spokesperson reported. “Our ink business consistently set quality sales as its top priority. It carried out systematic improvements in its customer structure and product lines, which led to a reduction in sales revenue by 9% year-on-year to HK$1.34 billion, while gross profit margin rose by 4 percentage points.
“The operating profit of the ink business increased significantly to HK$93.8 million, representing a year-on-year increase of nearly 1.4 times,” the spokesperson added. “This was mainly due to the proper control of operating costs and the integration of production from three plants to two plants, which resulted in a total reduction of approximately HK$26 million in various expenses.” In order to broaden revenue sources, the company is expanding industrial inks applied to furniture and at home to seize market opportunities.
As Yip’s inks are primarily used in food packaging, the company noted that the COVID-19 pandemic’s impact on its business remains to be seen.
“The impact of the COVID-19 pandemic on our ink business is not obvious,” the company spokesperson observed. “It is mainly because the application of our inks is related to daily necessity products, like food and drinks, and the majority of our ink products are sold nationwide in the PRC market.”
The exciting news is that Yip’s is looking to spin off its ink business. The spin-off is subject to certain conditions including, but not limited to, approval from the Stock Exchange as well as the Group’s shareholders. As of this date, Bauhinia Variegata Zhejiang has not yet submitted any listing application with relevant regulatory authorities in the PRC.
“After years of growth and development, on May 28, 2020, Yip’s Chemical announced a proposed spin-off and separate listing of its ink business operated under Yip’s Ink & Chemicals (Group) Limited, an indirect wholly-owned subsidiary of Yip’s Chemical and the holding company of Bauhinia Variegata Ink & Chemicals (Zhejiang) Limited (“Bauhinia Variegata Zhejiang”), on the Shenzhen Stock Exchange,” the spokesperson said. “Bauhinia Variegata Zhejiang will become the listing vehicle and the holding company of the Group’s subsidiaries which are engaged in the ink business.
“We believe the proposed spin-off will be beneficial to the Group as a whole because it will provide capital to the ink business to meet its expansion needs; enhance the ink business’ profile amongst its customers, suppliers and other business partners; enable the ink business and the Group to have their own fundraising platforms to access both the debt and equity capital market; and enable investors to value the ink business and other remaining business of the Group on a standalone business, thereby reflecting the true intrinsic value of the respective business.”
Yip’s Chemical will continue to benefit from any potential upside of the ink business upon completion of the spin-off as Bauhinia Variegata Zhejiang will remain a subsidiary of the Group.
“We are the largest ink manufacturer in the PRC and one of the top 20 ink manufacturers internationally by annual sales in 2019,” the company spokesperson noted. “We see it as the right time to spin off the ink business and seek a separate listing on the Shenzhen Stock Exchange to further increase our market share and capitalize on our technical and product strength.
“2020 remains to be a challenging year and yet we are optimistic towards China’s domestic market,” the spokesperson added. “As China is recovering from COVID-19 and stepping up policies and incentives to improve the business climate and boost consumption, it is expected that the domestic demand will rebound gradually in the second half, which is favorable to our ink business.”