07.21.21
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$160 million (HKD 1.24 billion); Yip’s Chemical’s consolidated sales were US$1.39 billion (HKD10.78 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: 800 (ink business).
Comments: Bauhinia Ink Company Limited, the ink manufacturing subsidiary of Yip’s Chemical Holdings Limited, is the largest domestic producer of inks in China in terms of annual sales volume in 2019, according to the China Ink Association. The company weathered the COVID-19 pandemic, growing in sales while also developing new products, including environmentally friendly inks.
“Yip’s Chemical navigated through the pandemic quite well,” a company spokesperson reported. “So far, we recorded zero case of infection both in HK and China. Our production and operations resumed orderly and our sales picked up along with the recovery of economic activities in Mainland China since the second half of last year.
“For the Group’s consolidated results, we managed to achieve a growth of 3% in turnover and it reached HK$10.78 billion. Our profit was up 11% year-on-year to reach HK$303 million,” the spokesperson added. “Excluding the one-off items such as the one-off expenses incurred from the proposed spin-off and separate listing of our inks business, our net profit actually increased more than 50%.”
In particular, sales of Bauhinia Ink’s gravure food packaging inks were excellent, as the Chinese domestic market grew strongly. However, sales of the company’s offset printing inks were negatively affected by a drastic reduction in export of printed products to the US and Europe. Under these two factors, the inks business still registered a growth of 0.7% in sales volume, while sales revenue slightly slipped by 3.3% to HK$1.24 billion due to a decline in unit selling price.
“The progress of the IPO project of the inks business is on track,” the company spokesperson noted. “In the fourth quarter of 2020, land acquisition, permit applications and the designs for the testing center and the new plant were all completed. We were notified by the Shenzhen Stock Exchange on February 3, 2021 that the listing application was acknowledged.”
Bauhinia Ink is the only company in the industry to run a testing laboratory accredited by both China National Accreditation Service for Conformity Assessment (CNAS) and China Metrology Accreditation (CMA). With its strategic collaboration with UL of the US, the fifth-largest testing company in the world, it has opened up new business opportunities of corporate testing services in recent years.
“The laboratory testing covers a variety of products, not only raw materials, printing materials and food packaging, which are closely related to Bauhinia Ink’s own businesses, but also electronic products and toys,” the spokesperson said.
Raw materials remain a concern for the ink industry, as the severe impact of the pandemic on the global supply chain resulted in tightened raw materials supply and increased prices. In 2020, Bauhinia Ink closely communicated with suppliers and entered into “pre-contract” agreements to ensure adequate raw materials supply. Such agreements are intended to secure prices and expand inventory while effectively controlling costs.
“The pricing of the major raw materials in ink manufacturing, solvents, has been rising and we could hardly see a downward trend while the pricing of resins greatly hinges on the solvents. Meanwhile, the pricing of pigments is more stable and drops slightly,” the spokesperson reported.
The company spokesperson noted that Yip’s Chemical’s business life is starting to return to normal during 2021. The Group issued a positive profit alert announcement on April 28, 2021.
“Yip’s Chemical is expecting to record an increase in net profit by over 110% for the three months ended March 31, 2021 as compared with that of the six months ended June 30, 2020, while results of the first half of last year were adversely affected by the COVID-19 pandemic and expenses related to the proposed spin-off and separate listing of Bauhinia Ink Company Limited on the Shenzhen Stock Exchange,” the spokesperson observed. “Sales of the inks business returned to a normal level. However, the rising raw material prices caused pressure on the margin side.”
“The operating environment is still ridden with uncertainties and challenges as COVID-19 is still raging around the world and far from being contained,” the spokesperson said. “Yip’s Chemical feels optimistic with the favorable ‘dual circulation’ development approach in Mainland China that is based primarily on the domestic economic cycle to drive the international economic cycle.
“We believe we would be benefitted in view of our established brand in the chemical industry. In 2021, we will focus on boosting quality sales amid the tough environment, and advancing the separate listing of Bauhinia Ink.”
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$160 million (HKD 1.24 billion); Yip’s Chemical’s consolidated sales were US$1.39 billion (HKD10.78 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: 800 (ink business).
Comments: Bauhinia Ink Company Limited, the ink manufacturing subsidiary of Yip’s Chemical Holdings Limited, is the largest domestic producer of inks in China in terms of annual sales volume in 2019, according to the China Ink Association. The company weathered the COVID-19 pandemic, growing in sales while also developing new products, including environmentally friendly inks.
“Yip’s Chemical navigated through the pandemic quite well,” a company spokesperson reported. “So far, we recorded zero case of infection both in HK and China. Our production and operations resumed orderly and our sales picked up along with the recovery of economic activities in Mainland China since the second half of last year.
“For the Group’s consolidated results, we managed to achieve a growth of 3% in turnover and it reached HK$10.78 billion. Our profit was up 11% year-on-year to reach HK$303 million,” the spokesperson added. “Excluding the one-off items such as the one-off expenses incurred from the proposed spin-off and separate listing of our inks business, our net profit actually increased more than 50%.”
In particular, sales of Bauhinia Ink’s gravure food packaging inks were excellent, as the Chinese domestic market grew strongly. However, sales of the company’s offset printing inks were negatively affected by a drastic reduction in export of printed products to the US and Europe. Under these two factors, the inks business still registered a growth of 0.7% in sales volume, while sales revenue slightly slipped by 3.3% to HK$1.24 billion due to a decline in unit selling price.
“The progress of the IPO project of the inks business is on track,” the company spokesperson noted. “In the fourth quarter of 2020, land acquisition, permit applications and the designs for the testing center and the new plant were all completed. We were notified by the Shenzhen Stock Exchange on February 3, 2021 that the listing application was acknowledged.”
Bauhinia Ink is the only company in the industry to run a testing laboratory accredited by both China National Accreditation Service for Conformity Assessment (CNAS) and China Metrology Accreditation (CMA). With its strategic collaboration with UL of the US, the fifth-largest testing company in the world, it has opened up new business opportunities of corporate testing services in recent years.
“The laboratory testing covers a variety of products, not only raw materials, printing materials and food packaging, which are closely related to Bauhinia Ink’s own businesses, but also electronic products and toys,” the spokesperson said.
Raw materials remain a concern for the ink industry, as the severe impact of the pandemic on the global supply chain resulted in tightened raw materials supply and increased prices. In 2020, Bauhinia Ink closely communicated with suppliers and entered into “pre-contract” agreements to ensure adequate raw materials supply. Such agreements are intended to secure prices and expand inventory while effectively controlling costs.
“The pricing of the major raw materials in ink manufacturing, solvents, has been rising and we could hardly see a downward trend while the pricing of resins greatly hinges on the solvents. Meanwhile, the pricing of pigments is more stable and drops slightly,” the spokesperson reported.
The company spokesperson noted that Yip’s Chemical’s business life is starting to return to normal during 2021. The Group issued a positive profit alert announcement on April 28, 2021.
“Yip’s Chemical is expecting to record an increase in net profit by over 110% for the three months ended March 31, 2021 as compared with that of the six months ended June 30, 2020, while results of the first half of last year were adversely affected by the COVID-19 pandemic and expenses related to the proposed spin-off and separate listing of Bauhinia Ink Company Limited on the Shenzhen Stock Exchange,” the spokesperson observed. “Sales of the inks business returned to a normal level. However, the rising raw material prices caused pressure on the margin side.”
“The operating environment is still ridden with uncertainties and challenges as COVID-19 is still raging around the world and far from being contained,” the spokesperson said. “Yip’s Chemical feels optimistic with the favorable ‘dual circulation’ development approach in Mainland China that is based primarily on the domestic economic cycle to drive the international economic cycle.
“We believe we would be benefitted in view of our established brand in the chemical industry. In 2021, we will focus on boosting quality sales amid the tough environment, and advancing the separate listing of Bauhinia Ink.”