Yip’s Chemical Holdings Limited (HKG:0408) Announces 2008/09 Annual Results

It had net cash of HK$369,131,000 in banks as at the end of the year under review (FY2007/08: Net borrowing HK$156,458,000 with gearing ratio of 10%). Tony Ip, Chairman of Yip’s Chemical, said, “The extent of the impact of the financial tsunami on the global economy during the third quarter of the last financial year was hitherto unseen. Operating under such dire economic conditions, the Group’s business results were inevitably affected. However, the Group took timely and decisive measures to deal with the challenges, including effective control on capital expenditure, reduction of receivables and inventories, expansion of the businesses, which cater to China’s domestic demand and increasing investments in brand building, all of which led to an improvement of the quality of our earnings. After a most difficult third quarter, the Group’s overall core businesses have basically returned to normal. At the same time, the new management structure the Group implemented last year is now functioning seamlessly. This will continue to raise our standards of corporate governance and set a firm foundation for the long term healthy development of the enterprise.” (July 3, 2009)