- Product authentication and consumer solutions provider YPB Group (YPB) has announced its China business has won two three-year supply contracts
- The first will see YPB China supply Suzhou-Haishun Packaging Material with its T2 tracer-scanner authentication solution
- Suzhou-Haishun will integrate the tracer into an advanced foil application for a pharmaceutical customer as well as promote the benefits of the technology
- This contract has a pre-determined value of at least $75,000 in revenue with potential upside
- The second contract involves YPB China supplying Beijing Haihui Printing with the T2 solution
- Haihui will integrate this into anti-counterfeiting labels for its customers
- Company shares have soared 25 per cent on the back of this news and are trading for 0.5 cents
Product authentication and consumer solutions provider YPB Group (YPB) has announced its China business has won two supply contracts.
Both contracts are for a three-year term and a contract value of at least $75,000 in revenue has already been determined from the first contract.
“We are steadily building a base of longer-term contracts and with strong client management, we can generate repeat orders and recurring revenues. Obviously, the China opportunity is enormous, and our growing suite of channel partners give us leveraged market access to those very high volumes,” YPB Group John Houston said.
First contract
The first contract will see YPB China supply Suzhou-Haishun Packaging Material with its T2 tracer-scanner authentication solution.
Suzo-Haishun is a major pharmaceutical packaging material manufacturer in China that produces cold-forming foils, tropical blister foils, suppository films and lid stock for various pharmaceutical, cosmetic and food applications.
Suzhou-Haishun will incorporate the tracer into an advanced foil application for a China-based pharmaceutical customer. It will also promote YPB’s brand and the benefits of its consumer protection solutions.
YPB hopes this will lead to growth beyond the contracted minimum value of $75,000.
Second contract
The second three-year contract is with Beijing Haihui Printing. Haihui will integrate YPB’s product authentication tracer and scanner into anti-counterfeiting labels for its customers.
Haihui has been a printing company in China for more than 20 years. It specialises in the technical research and development and printing services of label identification and anti-counterfeiting label identification.
Revenue under this contract is based on purchase orders issued by Haihui from time to time.
“Securing two new, high-quality China channel partners in new end-customer segments that are immediately revenue-generating and with the sales process occurring through the difficulties of COVID-19 reflects the increasing effectiveness of our revised China sales strategy,” John stated.
Company shares have soared 25 per cent on the back of this news and are trading for 0.5 cents each at 11:13 am AEST.