Yip’s Lube Profits Rebounded in 2023

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Yip’s Lube Profits Rebounded in 2023

Yip’s Chemicals Holdings Ltd. reported that its lubricants business rebounded with an operating profit in 2023 – after an operating loss in 2022 – on a 15% improvement in sales revenue.

The Hong Kong-based company’s lubricants business posted an HK$10.8 million (U.S. $1.4 million) operating profit in 2023, improving from an HK$2.1 million operating loss in 2022.

Gross profit jumped of 25% from HK$60 million in 2022 to HK$75 million in 2023.

Sales revenue for its lubricants business rose 15% last year to HK$345 million. The company attributed the increase to its continued development of a distributor network for automotive lubricants products sold under the Hercules brand, as well as new manufacturing and distribution partnerships that increased sales volume.

Yip’s said the lubricants business’ gross profit margin increased to 21.8%, compared to 20.1%, due increased sales volume of higher-end products and improved management of raw materials costs.

Yip’s said it also invested in advertising to bolster brand recognition in the consumer market.

The company said it aims to continue growing through its distributor network in China. It also said it planned to develop lubricants for industrial settings as a potential new avenue for higher margin growth.

The company supplies automotive lubricants under the Hercules brand and industrial and specialty lubricants under the Pacoil brand.

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