Breaking: Zhuhai Chuanmeixun Rushes to List on Beijing Stock Exchange Amid Performance Pressures
In a significant development for the digital printing industry, Zhuhai Chuanmeixun New Ingredients Co., Ltd. (Chuanmeixun) is making a dash to list on the Beijing Stock Exchange. This move comes at a critical juncture for the company, as it faces performance pressures and an intensifying industry price war.
Founder Lin Yuxiang Steps Down as Chairman
According to the company’s prospectus, Lin Yuxiang, a former professional baseball player turned entrepreneur, has gradually reduced his shareholding and management role over the past two years. At the end of 2023, Lin Yuxiang officially stepped down as chairman, handing over the reins to LIM KHENG TEE. This transition coincides with Lin Yuxiang’s divorce in 2024, during which part of his equity was divided between him and his ex-wife.
Chuanmeixun Faces “Increase in Revenue but Not Profits” Conundrum
Despite increasing revenue, Chuanmeixun reported a decline in profits in 2024. The company’s prospectus reveals that sales prices for some of its products, including water-based dye ink, dispersed ink, water-based pigment ink, and UV ink, have been declining. This trend is not unique to Chuanmeixun; other industry players, such as Honghua Digital Technology, have also cited peer competition as a primary factor behind the price pressure.
Industry Overcapacity and Price Wars
The digital inkjet printing industry is experiencing rapid development, with several enterprises expanding production. This expansion could lead to overcapacity, intensifying market competition and further driving down prices. Chuanmeixun’s plan to raise funds and expand production through its Initial Public Offering (IPO) underscores the company’s strategy to stay competitive amidst these challenges.
Evergreen Insights: Navigating the Digital Printing Industry
The digital printing industry is a dynamic space, characterized by technological advancements and competitive pricing strategies. For businesses and investors, understanding the market trends and staying ahead of regulatory changes is crucial. As Chuanmeixun prepares for its IPO, industry observers will be closely watching how the company navigates the challenges and opportunities presented by the evolving market landscape.
For more insights and updates on the latest business news, stay tuned to archyde.com. Join the conversation and share your thoughts on how Chuanmeixun’s listing will impact the digital printing industry.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. Always conduct thorough research before making investment decisions.
