Yee's chemical coatings business's 2016 profit fell 56% to its planned coatings business.

Ye chemical company recently announced that its
Coatings
business in 2016 turnover of HK$1,696 million, a decline of 10% year-on-year, the business operating profit of HK$26.666 million, a decline of 56% year-on-year. According to the company, due to the domestic promotion of environmental protection policies, traditional oily paint marketing face more restrictions, weaken the group's traditional advantages, coupled with the
water-based paint
growth momentum is not as expected, dragging down business performance.
2016, Yechemical has been restructuring its product line and has decided to exit the previously operating electronic consumer products coatings market, resulting in a large one-time related costs, as well as staff adjustments.
company decided that the future will focus on the development of
building coatings
and furniture coatings, the development of
water-based wood paint
and other high-end environmental protection products and establish sales channels. Ye chemical Bauhinia paint currently has more than 4,700 sales outlets, the company will not blindly pursue the number of sales outlets, but the plan should be different urban characteristics to develop sales channel strategy.
in the first quarter of 2017, Ye's chemical coatings business turnover has been year-on-year growth, the development strategy of the initial results.
, in addition, the company also revealed that due to the overall upward trend in crude oil prices during the year, the company's solvents, inks and coatings products will increase prices, but the price increase does not guarantee profit growth.
in the operation, Ye Chemical another initiative is to invest in Shenzhen, a home improvement company, the company was established nearly a year ago, Ye Chemical plans to invest 10 million yuan to participate in the equity, has signed a letter of intent, the company hopes to increase sales through cooperation with home maintenance channels.
also plans to spend HK$200 million to HK$300 million in capital in 2017, including installing environmentally friendly emissions facilities at the plant, which is expected to cost RMB20 million per plant. He also said that the year to be a merger, priority through mergers and acquisitions to expand the paint business.