IR News
München, 24. February 2012

Youbisheng Green Paper AG launches new anti-counterfeit testliner

Munich, 24 February 2012. Youbisheng Green Paper AG, the German holding company of a Chinese manufacturer of environmentally friendly linerboard for the growing Chinese consumer goods industry, launched its new anti-counterfeit testliner in February 2012.

Youbisheng’s R&D team had developed the new anti-counterfeit testliner over a period of almost three years. “In early 2010, we had realized that branded consumer goods need more and more protection against counterfeiting. We started working on the process-technology in order to integrate a very cost efficient and at the same time highly effective level of anti-counterfeit protection into our liner board,” states Haiming Huang, CEO of Youbisheng Green Paper.

The anti-counterfeit testliner consists of four separate layers. During the production process, the pulp for the middle layers is mixed with a certain dye, according to the customer’s specifications, and then used for the production of the two fully coloured inside boards. The colour stays invisible to the outside and the outside layer maintains the premium quality and printability of Youbisheng’s products. The new linerboard is used for shoe boxes, paper bags and product labels etc. of middle to high end products. The hidden colour works as a proof of authenticity for the packaged products, as the end consumer can verify the originality by tearing the packaging material.

Currently, Youbisheng is the only manufacturer in China with the know-how to produce such anti-counterfeit testliner. For its production, Youbisheng is using up to 100% recycled paper.

In February 2012, Youbisheng already sold 300 tons of the new anti-counterfeit testliner to three packaging companies in Fujian province. Due to this success, management expects to grow the sales of anti-counterfeit testliner to 4% of total sales for the current business year. The selling price for anti counterfeit testliner is approx. RMB 4,000 per ton (excluding VAT). The gross profit margin is about 33%, compared to an average gross margin for existing products of approx. 25%.

Youbisheng will first sell its new anti-counterfeit testliner in the Fujian province, expecting high and increasing demand for this product from the many local producers of branded consumer goods. Due to the unique additional safety feature however, the new product has the potential to also sell in the entire PRC market, as transportation costs are offset by the additional product benefits.

About Youbisheng Green Paper AG

Youbisheng Green Paper AG is the German holding company of a Chinese clean-tech leader of environmentally friendly produced linerboard from up to 100% recovered fibres. The high-quality linerboard innovations of Youbisheng take up a special position in the Chinese market and are produced in the own production plant near Quanzhou City. They are used in the packaging industry in the Fujian and Guangdong Province (together about 141 million inhabitants), especially for visually attractive sales packaging and carrier bags of high-quality consumer goods.

Youbisheng has been operating as a paper producer since 2000. In fiscal year 2010 and with its production plants operating at full capacity, it manufactured almost 150,000 metric tons of linerboard, making it one of the biggest linerboard producers in Fujian and Guangdong Provinces.

For further information:

Kirchhoff Consult AG
Jens Hecht
Phone: +49 (0)40 60 91 86 0

Youbisheng Green Paper AG
Gustav-Heinemann-Ring 44
81739 Munich

Disclaimer concerning prognoses

This communication contains forward-looking statements Forward-looking statements are statements that are not historical facts instead they reflect the current views and expectations of Youbisheng Green Paper AG and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialize or if the assumptions underlying any of the forward-looking statements of Youbisheng Green Paper AG are proving to be incorrect, the actual results of Youbisheng Green Paper AG may be materially different from those expressed or implied by such forward-looking statements. Youbisheng Green Paper AG does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.