 2015-06-19 |
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[Finance Express News / Reporter Zhao Xiaohui]
After solidifying its tape manufacturing technology, YC Group (4306-TW) is now focusing on business expansion. The group has appointed new CEOs for its subsidiaries ACHEM and Newzhou Global, with Lin You-sheng and Jiang Wenrong both coming from business backgrounds. With the vertical integration of the group nearing completion, the synergies are beginning to show, and gross margins are expected to improve by about 2 percentage points, with operations projected to grow each quarter.
The appointments of Lin You-sheng and Jiang Wenrong were officially announced and took effect on the 16th, with the new CEOs meeting with the media on the 17th to discuss future operational prospects.
YC Group is known for having one of the most complete upstream and downstream integrations in the global tape manufacturing industry. The parent company, YC, primarily produces BOPP films, ACHEM (1715-TW) focuses on the full production chain of tape materials and products, including OPP and PVC film tapes, while Newzhou Global (3171-TW) handles the sales of the group's products, packaging materials, and the expansion of its own retail store brand "Bao Da Shi."
The former chairmen of the three companies were all previously held by the group president, Li Zhixian. He has officially handed over the roles to the group’s internal professionals, Lin You-sheng and Jiang Wenrong, who will also serve as company general managers.
YC Group's CFO, Lin Jianyu, stated today that while the group has historically focused on production and manufacturing technology, the main consideration for the recent leadership transition is to shift focus towards business expansion.
Lin Jianyu also mentioned that after several years of internal vertical integration, it is nearing completion. With the realization of these synergies, gross margins are expected to increase by about 2 percentage points, and operations are projected to grow each quarter.
Lin You-sheng, the new chairman of ACHEM, is 60 years old and has been with the company for 27 years, starting from a grassroots role handling Japanese business. Jiang Wenrong, the new chairman of Newzhou Global, is 46 years old and has been with YC for 23 years, beginning as an assistant manager.
Looking ahead, Lin You-sheng noted that OPP film tapes, which account for approximately 55% of ACHEM’s revenue, currently have a monthly production capacity of 40 million square meters at each of its Zhangbin, Yangmei, Foshan, and Ningbo plants, plus 10 million square meters from its Vietnam plant, totaling 170 million square meters. This capacity is expected to increase to 200 million square meters within the next two years.
For PVC film tapes, which account for about 25% to 35% of ACHEM’s revenue, Lin You-sheng mentioned that production capacities are currently 6 million square meters each at its Taiwan, Dongguan, and Jiading plants, with an additional 4 million square meters from the Haian plant, bringing the total to 22 million square meters. The global market share for this product is currently near 15%, with a target to expand to 20% over the next three years.
Regarding Newzhou Global, Jiang Wenrong stated that the company previously focused on major regions in China, including East China (Shanghai), Central China (Wuhan), and North China (Tianjin). The company has started to see monthly profits from the second quarter of this year and is expected to grow each quarter. |
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