Wanchai, Hong Kong
Tel: +852 2675 2288,
+760 8652 2330
Fax: +852 2675 2345
E-mail: LiuWei@zs.yipsink.com, LinChuYi@zs.yipsink.com
Sales: $188 million (HKD 1.475 billion); Yip’s Chemical’s consolidated sales were HK $12.4 billion US $1.58 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: 754 (inks business).
Comments: The leading domestic ink manufacturer in China, Yip’s Chemical Holdings Limited had a terrific year in 2018, with sales rising 21% to HK$12.4 billion (US$1.58 billion). On the printing ink side, sales increased 5% to HKD 1.475 billion ($188 million), driven in large part by the company’s continued emphasis on environmentally friendly inks, as well as the slight increase in average selling price. In addition to inks, Yip’s Chemical is a leading manufacturer of solvents, coatings and lubricants.
“Yip’s Chemical is transforming from focusing on asset-based businesses to service-oriented and end-user oriented operations and the Group strives to offer environmentally friendly products and services to enable customers to live a green and sustainable life,” a Yip’s Chemical spokesperson reported. “We will continue to develop environmentally friendly ink products to cater to the market trend.”
The importance of environmentally friendly products in China cannot be overstated, and that includes printing and ink. Yip’s officials are working diligently to meet stricter requirements.
“The major challenge is that our operation is facing more stringent government policies and regulations on environmental protection, especially on the emission of volatile organic compounds (VOC) and product safety,” Yip’s spokesperson said. “We have invested around RMB 38 million to establish a large VOC treatment system in our plants in Zhongshan and Tongxiang, which effectively reduces the emission of VOC to a level that is well below the government-set threshold. Our R&D department is also equipped and has made unfailing efforts in innovating more environmentally friendly and safe products.”
Raw material pricing and availability were a challenge for every ink manufacturer, and Yip’s was no exception.
“Increased raw material prices posed pressure on our gross profit margin,” the spokesperson noted. “Hence, we worked on initiatives to drive down our costs and optimize our operation efficiency, one of which was to merge three production plants into two for better utilization. We keep improving our procurement strategy by identifying and working with quality and sustainable suppliers to expand and stabilize our supplier pool. Our procurement is primarily done locally.”
All in all, Yip’s Chemical sees environmentally friendly inks as critical going forward.
“We will continue to develop environmentally friendly inks to capture the industry trend,” the Yip’s Chemical spokesperson concluded. “We are also enhancing our customer portfolio so as to ensure a healthy cash flow and financial position.”