Chinese Stay Confident During Unprecedented Times

Chinese Stay Confident During Unprecedented Times

As with so many industries, the COVID-19 pandemic has been highly disruptive and thrown the imaging supplies aftermarket into a challenging position, never experienced before.

The industry has faced increasingly fierce market competition, compressed profit margins and price wars which have made many feel the industry has its back against the wall. Many worry the outbreak of COVID-19 will accelerate the contraction, for some, and demise for others.

Yet, at a time of crises and challenges, some companies remain calm and focused. By holding onto optimism, they manage to see opportunities brought on by such special circumstances.

Previously, RT Media reported China-based Topjet (officially called Topjet Technology Co., Ltd) had declined to go ahead with the final stage of Ninestar’s acquisition deal. Not all acquisitions were onboard.

On March 1, 2020, China-based Ninestar announced it would proceed with the acquisition of the remaining shares of three different Chinese consumables manufacturers. In addition to Topjet Technology (Topjet), according to chinaipo.com, the other two companies were Kingway Image Co., Ltd (Kingway) and Zhuhai National Resources & Jingjie Printing Technology Co., Ltd (Ink-Tank).

Ninestar had planned to buy the remaining 49% shares of Topjet for RMB¥214 million (US$30.16 million), however, Zhou Xin (pictured with RT Media’s David Gibbons), the CEO of Topjet made application to withdraw from the final part of the deal, stating it was more advantageous to Topjet’s development if it maintained the current equity status (51% controlling share).

In his interview with RT Media, Zhou expressed three main reasons for not going through with the final stage of the deal. “First, is because of my love for my team, clients, suppliers and the industry,” Zhou said. “Second, is the confidence I have in the future of Topjet and the industry. I believe Topjet will have a brighter future. Third, is my trust for the Ninestar group. I believe Topjet will further expand the market through its cooperation with Ninestar and under the guidance of Ninestar top management.”

Download the letter TopJet Sent to Ninestar to stop the final Acquisition Step

Another stirring in the industry that has inspired confidence is the application by Aster to be publicly listed. Its wholly-owned subsidiary, Jiangxi YiBo Electronic Technology Co., applied with the Hong Kong Stock Exchange on April 29, 2020. and expects to be listed as Planet Image International Limited (Planet Image) sometime in 2020.

According to a report from ZhuoShiZiXun, Planet Image plans to build a multi-story, comprehensive manufacturing center to further develop its business interests, increase market penetration ratio and expand the company’s presence. An enhanced development, upgraded and integrated communication system will be implemented to improve the efficiency of its operations, strengthen sales and logistics and expand its market share.

As the organizer of the RemaxWorld Expo and summit, RT Media is encouraged to see a determined resolve by some exhibitors. Relying on the strengths of their respective technology developments and their professional service teams, many had prepared a practical, yet powerful marketing expansion strategy for 2020. Sticking to their plans, 13 companies have already confirmed an increase in the size of their exhibition space at this year’s RemaxWorld Expo. They have high expectations of presenting their professional leadership positions domestically as well as globally.

RemaxWorld 2020 will be held from October 15 to 17 at the same venue, the Zhuhai International Exhibition Center. While there is high confidence that thousands of professional domestic visitors will attend the hundreds of exhibits. Plans to help thousands of international buyers unable to travel this year due to COVID-19 restrictions are being put into place. The buyers and suppliers will be able to participate in face-to-face meetings during the expo.

Aiming to build an ecosystem for the office industry, iPrint Expo 2020 will be held concurrently with a range of products on show including printers, copiers, intelligent office solutions, office supplies and consumables, office equipment and stationery.

Related:

• The letter TopJet Sent to Ninestar to stop the final Acquisition Step
• RT Media’s David Gibbons Talks with TopJet’s Tony Zhou
• Ninestar Acquisitions Not Yet All Onboard

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