Unfolded Issue 9

UNFOLDED | Hung Hing UK e-newsletter

Issue 9 May 2010


In this issue... Norman Yau, head of Hung Hing's International Sales, gives us his view of the recent book fairs and we also look at Hung Hing's objectives in its 60th year of printing...

Bologna and London Book Fairs


If you had participated in the Bologna Children’s Book Fair this year, or have spoken with someone who came back from Bologna, I am sure you get the same message as I have and that is the overall business sentiment this year at Bologna has been very upbeat. It is safe to say that the worst is over from the near global financial meltdown, for if you spoke with those who came to Bologna one year ago, back then the place had little or no activities. No one knew how long the crisis would last then and little to no publisher was placing print orders. The buzzwords last year were ‘cost out’, ‘inventory reduction’, ‘no new titles’ etc, etc, it was just an awful period. Now, fast forward to 2010, business has taken a 180 degree turn and we have seen a steady increase of print buy activities.

For us at Hung Hing Bologna 2010 turns out to be very positive. Our global commercial partners and marketing associates were busy visiting customers and discussing opportunities. Publishers we met with were once again asking for new quotations, they were showing us new titles and talking about post-Bologna factory visitation. If we look back to December and January, what we saw was an unexpected increase level of print order activities and when CNY finally came about, we were busy getting goods out to the shipping terminals before China went on the CNY holidays. So, I was not so surprised that at Bologna the common questions we heard were: ‘How’s your post CNY workers return rate?’; ‘Anything else you hear about paper price, is it still climbing?’; all in all, the trading atmosphere was cautiously optimistic but people mostly agreed that the worst is behind us.

When the London International Book Fair rolled around two weeks later, the talk of town was not publishing but the Icelandic volcanic ashes. This ‘Act of God’ had brought most businesses in Europe to a standstill. Notwithstanding the agony and pain caused by the UK and European airspace closure, day 2 at the LIBF was actually quite hustle and bustle and people we visited were telling us that they were indeed conducting a fair amount of business. By this time the paper supply situation in Asia was clear, that the mills were giving out paper allocation and in some cases they used the earthquake in the Southern hemisphere as an ‘Act of God’ to cancel contracts.

In summary, these two major fairs have a common theme, and that is the publishing industry is getting out of the lowest point in their business cycle. The challenges are not over yet but with our commercial partners working hard out in the field (as we have had already worked with a number of you), returning with timely market intelligence to our commercial organization, with everyone working hard cross functionally to capture every single opportunity, I am convinced that the future is bright and positive. As my Americas team and I am preparing for the BEA fair, I'd like to take this opportunity to thank all of our commercial partners located worldwide to help build Hung Hing into a strong and customer focused global print solution provider, putting high quality books into the hands of millions of readers worldwide – small kids and big people alike.

Norman Yau, May 2010Sixty Years of Printing Excellence

Fiona, Jasmine and Norman

We were very lucky to have three attendees who flew in ahead of the volcanic ash clouds from Hong Kong for the London Book Fair, including Norman Yau our VP Sales and Marketing, Fiona Chan (Assistant Manager) for the conventional book team and Jasmine Wong (Marketing Executive) from the children's and novelty team.


Bologna & London - 2010…A Commercial Perspective by Norman Yau


Hung Hing in 2010

Financially sound - with around HK$700million net cash position, we have continued to invest in state of art machinery, IT systems and quality control management systems.

Diversity – Printing & Packaging, Paper Trading, Paper Manufacturing, this gives us an edge over our competitors on market resources and intelligence

Well established with 60 years of experience – We have weathered many storms in these 60 years, and have always come out better and stronger

Market leader and professional management – The Partnership with CVC has proven a success, and we will continue to improve our efficiencies and transfer these benefits back to our valued customers, suppliers, commercial partners and shareholders.

Innovative and value added – The strengthening of our Design and Paper Engineering teams is adding value to this competitive market. Restructuring and de-specing the product, is helping our customer to save costs whilst keeping the brand image.

Result - In every economic downturn, opportunities arise. In 2009, Hung Hing injected resources, streamlined its workflow, and built up overall capacity in order to adapt a low margin / high volume model, whilst maintaining the highest level of customer service in 2010.

Challenges Ahead in 2010

With external pressures facing us, as for all other Southern China printers we are taking on significant price increase from various sources including paper prices, price increase on other raw materials, minimum wage increase by 20% starting from May 1st 2010 and freight costs increasing, as ships are traveling slower to reduce carbon emission.

There are China specific contributors such as RMB appreciation and more stringent environmental regulations and rules to conform to China’s commitment in carbon reduction. There is also an industrial and township enterprise development which is leading to an increase in demand & competition for labor. Furthermore the recent drought in Northern China (up-stream) causing power shortage problems in the Southern part of China, which is mainly generated by hydro power.

Whilst Hung Hing needs to address these cost factors, our commitment to our customers remains paramount. We want to continue to strengthen the partnerships we have formed by maintaining open and shared communication of such issues and managing these challenges moving forwards together.

5 Day Working Week - Just a quick reminder that our Head office in Hong Kong has now changed to a 5-day working week Monday to Friday


Sixty Years of Printing Excellence



Dates for your diary:


Seoul International Book Fair

Ipex 2010, NEC

New York Book Expo America

Tokyo International Book Fair

Hong Kong Book Fair

Hong Kong Public Holiday

UK Public Holiday

12 - 16 May

18 - 25 May

25 - 27 May

8 - 11 July

21 - 27 July

21 May

31 May



Hung Hing Offset Printing.
Hung Hing UK, 49 Leigh Road,
Eastleigh, Hampshire, SO50 9DF, UK

Tel: 00 44 (0)23 8062 9699 Fax: 00 44 (0)23 8062 9366
Website: www.hunghing.co.uk


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