 2013-11-11 |
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Jingshi News
Reporter: Hou Liangru
On November 11, YC (4306) held a board meeting and decided to sell its packaging division to its subsidiary, Xinzhou Global (3171), for no less than 396 million yuan. This decision is aimed at promoting vertical integration and enhancing operational efficiency. The financial impact of this transaction is expected to be reflected in the company’s reports starting from the first quarter of next year.
Currently, YC’s revenue breakdown is approximately 26% from tapes, 54% from films, and 20% from packaging materials. Given last year's revenue of about 5.909 billion yuan, Xinzhou Global is expected to see an increase of approximately 1.1-1.2 billion yuan in revenue next year. In 2012, Xinzhou Global's annual revenue was about 399 million yuan.
YC explained that its packaging division currently handles the procurement and sale of packaging materials, including films and tapes, both manufactured within and outside the group. As YC positions itself as a midstream manufacturer within the group, the decision was made to sell the packaging division to Xinzhou Global, which is responsible for logistics and distribution. The financial impact of this sale is anticipated to be reflected in next year’s first-quarter financial reports.
Founded in 1978, YC Group includes two publicly traded companies, YC and ACHEM, and one over-the-counter company, Xinzhou Global. The group’s total assets are approximately 28 billion yuan. It is a leading global packaging materials manufacturer, with its BOPP tapes and PVC tapes ranking second worldwide. The group’s business encompasses BOPP films, various adhesive tapes, adhesives, specialty chemicals, packaging materials, real estate development/construction, and investments in information services and optoelectronics. |
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