07.14.22
27/F., Fortis Tower, 77-79 Gloucester Road
Wanchai, Hong Kong
Tel: +852 2675 2288,
+760 8652 2330
www.yipsink.com
E-mail: LiJie@zs.yipsink.com, HuangJieWei@zs.yipsink.com
Sales: US$192 million (HKD 1.50 billion); Yip’s Chemical’s consolidated sales were US$2.28 billion (HKD17.8 billion) (Exchange rate at HKD 1 = USD 7.8).
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: Stephen Yip, chairman; Kwong Kwok Chiu, GM; Brian Yip, deputy GM; Lv Junxiong, sales director of Gravure Ink Division; Feng Wenzhao, technical director; Sara Suen, purchasing director; Pen Tse, financial director; Lin Meiju, plant director; Ma Zongcheng, sales director of Offset Printing Ink Division; Yang Minghui, sales director of Industrial Ink Division.
Number of Employees: 793 (inks business).
Major Products: Yip’s Chemical Holdings Limited had an excellent year in 2021, demonstrating resilience amidst the COVID-19 pandemic and global geopolitical challenges.
“2021 is the most unforgettable and challenging year in Yip’s Chemical’s history,” a company spokesperson said. “The macro socio-economic environment was heavily affected by geopolitical tensions and COVID-19. However, the Group managed to achieve a satisfactory full-year performance, with total sales revenue and profit attributable to owners of the Group both registered a record high to HK$17.8 billion (up 65%) and HK$406 million (up 34%) respectively.”
Bauhinia Ink Company Limited, the ink subsidiary of Yip’s Chemical Holdings Limited, is the largest domestic producer of inks in China in terms of annual sales volume. The company’s spokesperson noted that it, too, had strong sales growth.
“For the inks business, the overall sales grew by 20% to nearly HK$1.5 billion,” the company’s spokesperson said. “Fortunately, the sales volume and revenue remain relatively steady even during the turbulent times because ink products are closely related to our daily lives and the demands are rather stable.”
Yip’s Chemical’s emphasis on sustainability and the environment led to new developments that position the Group for growth.
“In response to the national energy conservation and emission reduction policies, the technical team of the inks business has actively pursued the R&D of water-based inks and it also recruited talents to improve the sales performance of its water-based inks and other eco-friendly products,” the spokesperson noted. “Bauhinia Ink’s Tongxiang plant in Zhejiang in Mainland China completed the automation of its new production lines and accelerated its digitalization during 2021, which will boost its production capacity to cope with the sales growth.”
While Yip’s ink operations enjoyed strong growth, margins were impacted by the high raw materials costs.
“In 2021, the overall raw material prices of inks increased by 38% year-on-year,” the spokesperson said. “Such a high raw material cost put pressure on our inks business. The cost increases might not be fully passed on to downstream customers and thus our margins were affected. Over the years, we have been expanding our suppliers’ pool and forming strategic partnerships with quality suppliers to ensure a stable and quality raw material supply.
“Since the product price adjustments were not on par with the increase in raw material costs, operating profit slipped by 22% to HK$47 million,” the company spokesperson added. “The Group took a customer-centric approach in discussing the price adjustments and solutions with customers. We still put a strong focus on the domestic market in Mainland China.”
The spokesperson doesn’t expect much improvement in raw materials costs.
“Under the Russo-Ukrainian conflict, we expect commodity and other raw material prices will continue to stay at a high level in 2022, imparting pressure on our gross profit and profitability,” the spokesperson said. “In addition, the central government of PRC adopted strict regulations to contain the pandemic in 1H2022. Some cities were locked down in Mainland China, posing challenges to logistics, but the Group had strived its best to ensure its production capacity to meet market demands.”
Meanwhile, the plan to spin-off Bauhinia Ink remains in the works.
“The application for the spin-off of Bauhinia Ink for a separate listing on the Shenzhen Stock Exchange (SZSE) is still in progress,” the spokesperson said. “We are preparing to respond to the latest third round of questions raised by the SZSE. The listing time will be determined after the approval of the SZSE and the endorsement of the China Securities Regulatory Commission for registration are obtained.”
Yip’s Chemical and its ink division are cautiously optimistic about the rest of 2022.
“Looking ahead to 2022, it is expected that the central government of PRC will continue to expand and optimize the domestic market to ensure a stable economy throughout the year,” the company’s spokesperson concluded. “With Yip’s Chemical’s core businesses rooted in the domestic Mainland market, they will certainly benefit from the existing national policies. For our inks business, we will focus on developing new environmentally-friendly inks in order to be in line with the global trend of environmental protection, and will advance the separate listing plan of Bauhinia Ink steadily.”
Wanchai, Hong Kong
Tel: +852 2675 2288,
+760 8652 2330
www.yipsink.com
E-mail: LiJie@zs.yipsink.com, HuangJieWei@zs.yipsink.com
Sales: US$192 million (HKD 1.50 billion); Yip’s Chemical’s consolidated sales were US$2.28 billion (HKD17.8 billion) (Exchange rate at HKD 1 = USD 7.8).
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: Stephen Yip, chairman; Kwong Kwok Chiu, GM; Brian Yip, deputy GM; Lv Junxiong, sales director of Gravure Ink Division; Feng Wenzhao, technical director; Sara Suen, purchasing director; Pen Tse, financial director; Lin Meiju, plant director; Ma Zongcheng, sales director of Offset Printing Ink Division; Yang Minghui, sales director of Industrial Ink Division.
Number of Employees: 793 (inks business).
Major Products: Yip’s Chemical Holdings Limited had an excellent year in 2021, demonstrating resilience amidst the COVID-19 pandemic and global geopolitical challenges.
“2021 is the most unforgettable and challenging year in Yip’s Chemical’s history,” a company spokesperson said. “The macro socio-economic environment was heavily affected by geopolitical tensions and COVID-19. However, the Group managed to achieve a satisfactory full-year performance, with total sales revenue and profit attributable to owners of the Group both registered a record high to HK$17.8 billion (up 65%) and HK$406 million (up 34%) respectively.”
Bauhinia Ink Company Limited, the ink subsidiary of Yip’s Chemical Holdings Limited, is the largest domestic producer of inks in China in terms of annual sales volume. The company’s spokesperson noted that it, too, had strong sales growth.
“For the inks business, the overall sales grew by 20% to nearly HK$1.5 billion,” the company’s spokesperson said. “Fortunately, the sales volume and revenue remain relatively steady even during the turbulent times because ink products are closely related to our daily lives and the demands are rather stable.”
Yip’s Chemical’s emphasis on sustainability and the environment led to new developments that position the Group for growth.
“In response to the national energy conservation and emission reduction policies, the technical team of the inks business has actively pursued the R&D of water-based inks and it also recruited talents to improve the sales performance of its water-based inks and other eco-friendly products,” the spokesperson noted. “Bauhinia Ink’s Tongxiang plant in Zhejiang in Mainland China completed the automation of its new production lines and accelerated its digitalization during 2021, which will boost its production capacity to cope with the sales growth.”
While Yip’s ink operations enjoyed strong growth, margins were impacted by the high raw materials costs.
“In 2021, the overall raw material prices of inks increased by 38% year-on-year,” the spokesperson said. “Such a high raw material cost put pressure on our inks business. The cost increases might not be fully passed on to downstream customers and thus our margins were affected. Over the years, we have been expanding our suppliers’ pool and forming strategic partnerships with quality suppliers to ensure a stable and quality raw material supply.
“Since the product price adjustments were not on par with the increase in raw material costs, operating profit slipped by 22% to HK$47 million,” the company spokesperson added. “The Group took a customer-centric approach in discussing the price adjustments and solutions with customers. We still put a strong focus on the domestic market in Mainland China.”
The spokesperson doesn’t expect much improvement in raw materials costs.
“Under the Russo-Ukrainian conflict, we expect commodity and other raw material prices will continue to stay at a high level in 2022, imparting pressure on our gross profit and profitability,” the spokesperson said. “In addition, the central government of PRC adopted strict regulations to contain the pandemic in 1H2022. Some cities were locked down in Mainland China, posing challenges to logistics, but the Group had strived its best to ensure its production capacity to meet market demands.”
Meanwhile, the plan to spin-off Bauhinia Ink remains in the works.
“The application for the spin-off of Bauhinia Ink for a separate listing on the Shenzhen Stock Exchange (SZSE) is still in progress,” the spokesperson said. “We are preparing to respond to the latest third round of questions raised by the SZSE. The listing time will be determined after the approval of the SZSE and the endorsement of the China Securities Regulatory Commission for registration are obtained.”
Yip’s Chemical and its ink division are cautiously optimistic about the rest of 2022.
“Looking ahead to 2022, it is expected that the central government of PRC will continue to expand and optimize the domestic market to ensure a stable economy throughout the year,” the company’s spokesperson concluded. “With Yip’s Chemical’s core businesses rooted in the domestic Mainland market, they will certainly benefit from the existing national policies. For our inks business, we will focus on developing new environmentally-friendly inks in order to be in line with the global trend of environmental protection, and will advance the separate listing plan of Bauhinia Ink steadily.”