Yem Chiou to Challenge NT$10 billion Sales Mark in Five Years

Taipei, Oct. 26, 2005 (CENS)--Yem Chiou Co., Ltd., one of Taiwan's leading manufacturers of adhesive tapes, recently announced it expected to challenge the NT$10 billion (US$301.2 million at US$1:NT$33.2) mark for annual sales five years from now.

Despite the skyrocketing rise in the price of raw materials over the past three years, Yem Chiou has still enjoyed continuous growth in profits, with annual sales increasing four times over the past five years.

Yem Chiou was listed on the Gre Tai Securities Market, Taiwan's over-the-counter securities exchange, five years ago, when it had annual sales reaching NT$1 billion (US$30.12 million). At that time, company president Lee Chih-hsien vowed to boost annual sales to NT$5 billion (US$150.6 million) in five years, and that goal seems to have been achieved this year.

At present, the company has three plants, with one in Taiwan, one in mainland China, and another in Vietnam.

Manufacturers of adhesive tapes the world over have seen their core-business profits slide over the past several years because of increased production costs in the wake of skyrocketing price hikes for such raw materials as polyvinyl chloride (PVC) and polypropylene (PP). Many said they had seen the ratio of the cost of raw materials to overall production costs increase from 60% in 2003 to 70% in 2004, and then to 85% this year.

Despite the poor market environment, Yem Chiou has still enjoyed growth in sales and profits, and has moved to the forefront of the adhesive-tape world.

Lee said his company is Taiwan's first adhesive-tape firm to complete a vertical integration by investing in the upstream product of thin film. The company has also built up an integrated direct-sales network domestically.

The company noted that the adoption of direct sales could help it adjust product quality in response to customers' special requirements and, on the other hand, make correct judgments about developments in the market so as to concentrate on niche products.

Yem Chiou said it posted NT$1 (US$0.03) in after-tax earnings per share in the first three quarters of this year. If the market situation continues as it has been, the company is expected to garner NT$1.5 (US$0.045) in EPS this year.