Taking a Closer Look at the

Hong Kong
& China
Printing Industry

I
Treating the U.S. tariffs t’s on. It’s off. Back to the drawing board. Renegotiate. Pause.

istock . com
Now it’s on again. Sound familiar?
as another business The whole U.S.-China trade debacle and ensuing tariff threats

/ zefart
(and reversals) is not all that dissimilar from the stages leading

©
challenge—along with up to a print order placement, whether it is about striking the

illustration
right deal, fixing the appropriate terms and conditions, or put-
rising production costs, ting the ink onto paper. But of course, the repercussions from tariffs
on print products manufactured in China are far more serious.
slimmer profit margins, In the latest decision (released on August 13) from the U.S. Trade
Representative, Bibles and religious books are excluded from the first
and more stringent list of products subjected to 10% tariffs starting September 1, while
picture books, drawing books, and coloring books received a reprieve,
regulations—is the with tariffs delayed until December 15. All other types of books—
trade, education, and professional—printed in China are still subject
pragmatic way forward to 10% tariffs come September.
For print manufacturers in Hong Kong and China, there is no
for Hong Kong and China avoiding the elephant in the room. While there seems to be little sense
of enfeebled buyer sentiment brought on by the tariffs (or threats or
print manufacturers tantrums—all of which do apply) so far, there are palpable worries of
a down-trending global economy, fueled by the U.S.-China trade
dispute and by other trade standoffs going on in different parts of the
world. Confusion and uncertainty reign.

By Teri Tan Reactions to the Tariffs

“Unpredictable” is the summation from Ken Kong, managing director
of Jade Productions, on the trade dispute. “I still believe that books
will be the last item on the list of products subjected to the tariffs,”
he says, “and that U.S. publishers and associations will do their utmost
to ensure that books are tariff-exempted.”

50 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
 Printing in Hong Kong & China

“Hoping for the best and pre- children’s books), packaging, and
pared for the worst” is the motto paper trading. “And if cost
of Henry Woo, general manager becomes the only consideration
of Leo Paper’s OEM business for printing in China due to the
department. “We are definitely tariffs, then there may be down-
not looking forward to any inci- speccing of products, which will
dent that will adversely affect the then lead to less creativity and
close relationships and strong innovation. This will be a big loss
partnerships between American not just to the U.S. book
publishers and Hong Kong/ market—especially for children,
China print manufacturers,” Woo parents, and educators—but also
says. “Ongoing trade disagree- to the rest of the world.”
ments are never positive and will The trade war and subsequent
cast far-reaching implications tariff implementation—whether
beyond economic losses, and no it is at 10% or 25%, or if it will
one—definitely not Leo Paper— be lifted in the near future—has
wants that. Having said that, we (l. to r.) Andy Lau, Alvin Lai, and Henry Woo of Leo Paper changed publishers’ views on
are collaborating with clients to their supply base, says Howard
explore possible ways to minimize the tariff impact.” Musk, president and CEO of Imago. “It has now become a more
The U.S. tariffs will bring about “higher prices and a short complex equation than simply choosing between the U.S. and
supply of innovative, tactile, and interactive children’s educa-
tional products into the U.S.,” says Richard Lim, COO of Hung This coverage is also available online at
Hing, which has a diverse portfolio covering printing (especially publishersweekly.com/asianprinting2019.

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 Printing in Hong Kong & China
China for print manufacturing, and one of Imago’s roles is to
help solve that equation.”
For Alice Fan, overseas sales manager at Magnum Offset, the
uncertainty over the tariff implementation is fast becoming a
new normal. “The negotiations—on, off, and then on again, and
at this percentage or that—are very distracting, with no one
really knowing the next U.S. or China game plan. What we do
know is that we need to treat all these as a part of the usual
business environment, where there are ups and downs, threats
and opportunities, and we adjust our operations accordingly
while staying optimistic and pragmatic.”
Dealing with the Tariffs
By now, most print procurement teams at major U.S. publishing
houses would have done their preliminary scoping out of alter-
native print sources in their contingency plans, says global busi-
ness director John Currie of CTPS, which supplies to higher
education, STM, and reference book publishers.
“For the segments that we cater for,” Currie adds, “some ques-
tions have risen from the tariff threats: Is there sufficient
capacity—especially in the U.S., where printer consolidations
and mergers and acquisitions have been ongoing for some time
now—to absorb the sheer volume of print coming from these
big publishers? And can these publishers get the same price
points, quantity, and quality that they have enjoyed from China
print suppliers for so long? These answers will determine the
John Currie (l.) and Peter Tse of CTPS
Related Reads from PW:
● Bibles, Kids’ Books Win Tariff Reprieve
● BISG Annual Meeting Examines Paper and Printing Challenges
● BISG Annual Meeting Tries to Make Sense of the Supply Chain
● Looming Tariffs Cloud Printing Picture
● Tariffs on Canadian Paper Products Dumped
Visit publishersweekly.com/printingmarketplace to find out more about the companies featured in this coverage.
52 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
extent of the migration and the long-term impact on the U.S.
book industry and China’s print manufacturing.”
Depression in the print segment, Currie says, will then exert
an upstream disruption to paper mills and agents in Hong Kong
and China. “Reduced inventory of paper is one potential out-
come,” he says. “Increased paper pricing is another.” As for
CTPS’s own contingency
plan vis-à-vis the trade dis-
pute, Currie says that the
scale will depend on the
eventual percentage of the
imposed tariffs. “This may
range from downsizing oper-
ations and workforce to
achieve even higher produc-
tion efficiency to seeking
non-U.S. replacement export
business. The latter, of
course, will take some time
to achieve.” Matthew Yum, executive chairman of
Chinese print manufac- Hung Hing
turers, says Matthew Yum, executive chairman of Hung Hing,
will not be able to absorb the cost of the tariffs if they are imple-
mented on books. “For Hung Hing, market diversification has
proven to be helpful, since we are also active in Europe, the U.K.,
China, and other markets within Asia Pacific. Our operations are
spread across several business verticals, and we continually eval-
uate each segment for its commercial contribution or cost chal-
lenges—with or without tariff implementation. In fact, we have
been redirecting some of our capacities and resources to other
business categories including premium and promotional products
for fast-food retailers, which are not operating within the U.S.”
The last few weeks have seen Francis Ho, deputy general
manager at C&C Offset, and his management team having long
discussions and production planning with clients. “Given the
way the U.S.-China trade war is going, we want to be prepared
for all eventualities while we keep our fingers crossed for the
best—in this case, zero tariff. In any case, the next one month
will give us a much better indication of our publishing clients’
plans regarding manufacturing their titles in China. At the
same time, we are also actively exploring opportunities to print
outside of China.”
Staying proactive, Ho adds, is about reacting quickly to the
 CC AD A5 in English version 4.pdf 1 13/8/2019 19:11:14

At C&C, we celebrate 40 years of past excellence and build

our f�t�re together with you and your company.

CM

MY

CY

CMY

C & C Joint Printing Co., (H.K.) Ltd. is Hong Kong’s largest printing group; established from merging the printing operations
of Chung Hwa Book Company and The Commercial Press in 1980. At present, it has operated different production sites in
Hong Kong and mainland China (Shenzhen, Shanghai and Beijing). C & C has diversified in different business scope,
covering book & magazine printing, commercial printing, security printing, and packaging printing as well as providing full
range of prepress and postpress services. The products include books, magazine & periodicals, travel documents, cheques,
financial & security documents such as coupons and anti-counterfeiting labels, RFID cards & labels, train tickets, packaging
boxes, etc. We strive to develop the company into a global printing and communication enterprise with world-class
competitiveness that creates and delivers unmatched values to our worldwide customers. In recent years, we have
promoted the business theme of “Connect & Smart”. Utilizing internet and information technology, we put our focus and
investment on upgrading our capabilities, breakthrough in the quality standards of our products and services, and
enhance operational efficiency through industrial automation and R&D. We have increased our investment in the RFID
business sector as well as developing its own ERP 2.0 system to push forward the efficiency of the management system.
Recently, the MES (manufacturing execution system) is recently launched that covering all printing presses. With the
system, we adopt the lean management and are able to make the better use of the real-time data of our equipment and
unlocking potential and unused capacity. We aim to provide better service for our clients.

Wechat Official Account Website

Address：14/F, C&C Building, 36 Ting Lai Road,TaiPo, N.T., Hong Kong

Tel: (852) 2666 4888
Fax: (852) 2666 4889
E-mail: info@candcprinting.com
Website：www.candcprinting.com

C&C -215.9x279.4 English version 3.indd 1 2019/8/14 09:35:32

 Printing in Hong Kong & China
Ken Kong (l.) and Chan Hon Kwong of Jade Productions
changes in global political and business environment. “It is
always good to know what is going to happen or is already on
the way. As the saying goes, ‘forewarned is forearmed.’ ”
Kong, of Jade Productions, has also been preparing for any
tariff fallout, including keeping less paper stock for potential
orders from the U.S. “We had considered moving print back to
Hong Kong, but we found that only paperbacks are possible
within the current price range. Illustrated and coffee-table books
will be much more expensive, while labor-intensive children’s
books are almost impossible to move back at all. The higher
manufacturing cost and inadequate production capacity and
expertise in Hong Kong make such relocation not feasible.”
For major U.S. clients placing orders with Jade Productions,
Kong is going an extra mile in the event that the tariffs come
into effect mid-production. “I am offering a certain percentage
of discounts to help them out in such cases. That, I think, is the
most we can do given the situation.” And in case the tariffs are
levied strictly based on supplier invoice, Kong and his team are
taking steps to ensure that his manufacturing costs are listed
separately from the freight charges.
Asked if publishing clients are rushing orders and shipments
or holding back on print orders due to the tar-
iffs, Fan, of Magnum Offset, says, “Not at all.
We have new clients looking for quotations
and established ones placing new orders. So far,
we have not received any inquiries about the
trade war and tariffs. Instead, clients are asking
if we work on Sundays—and yes, we do, since
our frontline production team is 24/6, and our
sales team works from home after office hours
to meet the needs of our customers.”
Magnum Offset’s main production lines are
located right in Hong Kong itself, and that,
for Fan, is a big advantage right now. “We do
not see any immediate impact on us due to the
tariffs, and our printed products are directly Alice Fan, overseas sales manager at
exported from Hong Kong ports to the U.S.— Magnum Offset
54 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
and so we are not worried,” he says. “If certain raw materials—
inks, plates, chemicals, paper, and packing materials, for
instance—are affected by the tariffs, we will be able to weather
it without seriously hitting our bottom line.”
Percy Leung, overseas sales manager at Magnum Offset, adds:
“Our main strategy is to continue maximizing our capabilities,
efforts, resources, and equipment while minimizing unnecessary
sub-contractors costs to maintain the highest business performance
possible.” And while the U.S. is not Magnum Offset’s biggest
export market, it remains an important one. “In the past 12
months, especially, projects from our local market account for a
huge percentage of our turnover,” Leung says, pointing out that
“our clients come from different parts of the world, and there are
opportunities everywhere, including the U.S., despite the
tariffs.”
Moving On and Beyond
For some of the print manufacturers, uncertainties caused by
the unstable U.S-China relations have turned the spotlight on
the growing domestic market, specifically in packaging and
publishing sales.
For Hung Hing, its successful foray into the Chinese market
and ongoing collaboration with major Chinese publishers are
tied to increased consumer spending on books and educational
products. “Young Chinese parents with higher disposable
income are much more willing to spend on educating their
children compared to a decade ago,” says Yum, pointing out
that there is a growing appetite for licensed children’s books.
“At the same time, with Chinese publishers busy reinventing
or upgrading their products with better illustrations and con-
tent, Hung Hing is able to ride on this growth for better quality
books and expand our foothold in the Chinese market.”
For 2019, Yum’s major focus is to further improve his current
manufacturing facilities while working on completing and com-
mencing its Vietnam operation. “We are optimistic about the
Vietnamese market for packaging,” Yum says, “especially given
the current trend of manufacturers moving to locations outside
of China. In the near future, we may even con-
sider expanding this particular operation to
include exports of paper products.”
Leo Paper is also taking the pragmatic way to
move ahead. “We do our best to equip ourselves
and positively embrace any changes and chal-
lenges that are foreseeable or controllable,” says
Woo, who is seeing sales growing in China,
Germany, and the U.S. “Over the years, we have
emphasized and continued the efforts to main-
tain our quality, cost, and delivery—which is
the most important element to staying com-
petitive and sustainable.”
Leo Paper’s product range, Woo adds, is
wide, and so is its client base. “We do not rely
heavily on a single region or client to maintain
 Printing in Hong Kong & China
our business,” he says. “In fact, diversification is
always one of our corporate strategies in
expanding our business portfolio and achieving
sustainable growth. Market-wise, we started
taking a proactive approach by expanding into
the domestic China market in 2015, and this has
proven to be an astute move given its growing
volume of children’s publications, increasing
demand for higher product and content quality
and stricter copyright protection.”
Meanwhile, Leo Paper’s trademarked value-
added solution Magic Paper World has received
positive feedback from publishers, especially
from those in Europe. Additional and more
exciting solutions will be showcased at the Howard Musk, president and
CEO of Imago
upcoming Frankfurt Book Fair. (More on Magic
Paper World on page 62.)
From the beginning, Musk says, Imago offered global print
solutions with a focus on China as well as other Asia- and Europe-
based print options. “We have strengthened our capabilities
outside of China,” he adds. “In fact, since 2018 and continuing
through 2019, we will be building on our already diverse
printing plant network.” A further push to broaden the network
The Easiest Way ...
Your Production Team in Asia
A: Flat B, 6/F., Tung Chong Fty. Bldg., 655 King’s Road, North Point, Hong Kong
T: (852) 2967 9360
: jadeproductionsprinting
came from the tightening of content censorship
in China. “The Chinese government’s process for
checking content has changed in recent months,
resulting in a much longer process while
increasing the amount of content being
rejected,” Musk says.
Nevertheless, there are many projects, espe-
cially those involving lots of handwork or com-
plex finishing, for which China is the only good
option. “In recent years,” Musk says, “we have
seen a greater demand for very beautiful edi-
tions, and it would be very sad if uncertainty
over tariffs makes publishers invest less in this
area. The industry has seen growth in printed
book sales, which is great for us printers, pub-
lishers, and booksellers, as well as for readers,
who can enjoy getting their content from a well-made book
instead of a tablet.”
On the positive side for printing in China, Musk notes that
the trade tensions have already put some downward pressure on
the yuan, and that paper prices are softer than they have been in
recent years, which helps to keep China manufacturing
competitive.
E: jadepro@jadeproductions.com.hk W: www.jadeproductions.com.hk
 Printing in Hong Kong & China

Greening Is Still the Word

For the Chinese government, keeping its man-
ufacturing industry well and alive (and active)
is very much about sustainability. Ecological
citizenship is de rigueur while the call for more
environmental protection is getting louder.
Tree-planting and space-greening activities
have taken on a frenetic pace never before seen
in every city and township. Tightening regula-
tions are aimed at reducing pollutants and
increasing the days of blue skies, hence the
closure of many factories around major metro- C&C Offset’s Hong Kong office underwent major renovation and upgrading to ensure its
politan areas and the launch of the three-year eco-sustainability.
Blue Skies initiative last year. (See “Of Inks and More,” below, production facilities, while Leo Paper has initiated a company-
on the vast implication of China’s eco-initiatives.) wide plastic-free movement. In fact, none of the print manufac-
For print manufacturers, acronyms such as FSC, SFI, and turers and brokers featured in this report are idling by when it
PEFC and others pertaining to forest stewardship, are now an comes to being ecologically aware and active.
indispensable part of the industry lingo. Being sustainable and Printing press manufacturers are also getting into the act, by
carbon-neutral is the goal—which is easier said than done, but increasing machine throughputs and energy efficiencies while
the manufacturers are trying very hard. decreasing wastage and emissions. Presses are becoming carbon-
Hung Hing, for instance, is equipping its Hong Kong head- neutral, using water-based inks, and requiring less (or no)
quarters wth solar panels—which will generate an estimated alcohol-based solvents. Some are automating and bypassing
200,000 kWh of power annually—and the company is partici- tedious processes in the bid to be faster and more eco-friendly.
pating in a pioneering project that uses artificial zeolite to absorb (See “The Case for Digital Print Enhancements,” page 64.)
volatile organic compounds released by indoor applications. For Hong Kong and China printing industry players, any
“Another pioneering project that we are carrying out uses solution that will bring forth higher productivity, faster time
advanced electromagnetic methods to kill germs in water and to market, and eco-friendly practices is lauded and much
prevent water scale buildup in heat exchange pipes so that our welcome. Here is a roundup of seven major export print sup-
water system can run in peak efficiency at all times,” Lim explains. pliers on their strategies, investments, and hopes for the coming
C&C Offset is continuing its investments in greening its months. ■

Of Inks and More and coatings.

Last year, major ink companies—namely Flint, Huber, and Sun
Chemical—came out one by one to announce price hikes on their
inks and coatings for North American markets.
These companies and other ink suppliers—including DIC, Sakata,
Siegwerk, and T&K Toka—have operations in China, where the
domestic printing industry is valued at $160 billion and the annual
ink sales exceed $1.5 billion. But now, these ink companies are
facing two serious challenges far beyond their control.
The first challenge comes from China’s green movement, which
aims to shrink outdated production capacity and eliminate those
using substandard coal-fired power generators and boilers.
Thousands of factories have been shuttered, and production
sputtered as a result. Last year, a three-year Blue Skies initiative
was launched to further curb air pollution. Tighter legislations on
emissions, waste disposal, and cleaner energy usage are affect-
ing not just pulp-and-paper mills and printing factories but also
raw materials manufacturers.
So, up went pulp and paper prices, and short was the supply of
raw materials—specifically, photoinitiators, oligomers, and mono-
mers—that are required for making energy-curing printing inks
The second challenge started in Washington with tariff talks,
threats, and tweets. The ensuing U.S.-China trade war escalated
fast with tit-for-tat measures that recently saw the latest round of
tariffs imposed on almost all goods manufactured in China.
For U.S. publishers considering pulling print orders from China
and going back onshore to avoid the tariffs, the current picture is
not ideal. Closures of major printers—Edwards Brothers Malloy and
Thomson-Shore come to mind—have destabilized the supply chain,
while U.S. and Canada mills closures and production cuts have
reduced the tonnage of printing and writing stocks available in the
market. And now, printing inks are becoming more expensive.
On the positive side, the devalued Chinese yuan, now at its
11-year low against the U.S. dollar, will reduce the tariff impact on
China-made products. The devaluation is making Chinese exports
more competitive and cheaper while turning U.S. imports more
costly, which will then force Chinese companies to look for alterna-
tives or make/build their own. For China, it seems like a good deal
in the long run. For the White House, this is probably going to merit
more tweets (and threats, and tantrums, oh my). For these ink
companies, only time will tell.

56 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
PW_OP_Aug06.pdf 1 8/6/19 1:44 PM
 Printing in Hong Kong & China
C&C Offset
Extensive management efforts and investments in greening
C&C Offset production facilities have continued unabated, says
deputy general manager Francis Ho. “Wastewater treatment,
energy saving, VOC purification, central dampening supply
system, you name it. We are currently reviewing and upgrading
these systems as and when needed to ensure that they meet with
the newer and higher standards,” adds Ho, whose management
team has also replaced two binding lines to further enhance
productivity. “Our new Kolbus BF530 case binding line is one
of the most sophisticated models in the market right now, with
the highest speed and many in-line features.”
Social accountability and family support is also taking a
front seat at C&C Offset. This year, for instance, its Shanghai
facility is participating in ICTI Ethical Toy’s Family-Friendly
Spaces program, which allows parent workers to spend time
with their children, who often live far away in their home-
towns and only see their parents during the Lunar New Year
holidays. “We have arranged for the children of our staff to
attend four-week summer camps at our factories, where they
will learn and play while their parents work. We see this as
something nice and beneficial for the morale and welfare of
our staff and their children.”
Business-wise, Ho is seeing growth in adult trade books and
children’s titles, especially in the first half of this year. “It seems
like American and British publishers are trying to get their
orders done before the tariffs are implemented and Brexit comes
into effect, respectively,” he says. “Sales from the educational
publishing segment also picked up slightly compared to the
same period last year.”
Next year marks the 40th anniversary of C&C Offset, and
plans are afoot to further leverage on its varied offerings and
solutions in offset, digital, security, and packaging printing.
“Given the advanced printing equipment and color management
systems in the market, anyone can print a beautiful book or
manufacture a unique packaging product,” Ho says. “So future
development and opportunities are about being smart and
connected. We believe that the value of C&C Offset—and
the print manufacturing industry—lies in providing solutions
to clients in different verticals, and that their needs are multi-
dimensional and wide-ranging, and all this fits our capabilities
to a T.”
58 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
CTPS
Lean manufacturing practices carried out at CTPS in the past year
has seen a lower workforce at the same capacity output but with
increased production efficiencies. “In terms of cost structure, it gives
us a much better position to face 2020, which is widely expected to
go into stagflation and possibly a global recession triggered by the
ongoing U.S.-China trade war,” says global business director John
Currie.
On its production floor, populated by HP Indigo, Heidelberg, and
HP inkjet web presses, there are now less labor-intensive books and
Bible/lightweight printing projects. “Labor cost, which is rising in
China, is a challenge,” Currie says. “For clients, the less labor used,
the better the unit price of their project looks, which is also better
suited to the current, more conservative market. Overall, mid-to-
short runs of between 20 and 1,000 copies—on digital or offset
printing, or hybrid—remain our sweet spot and our most competitive
product range.” Currie adds that an updated CTP system has provided
the team with the capability to produce 40,000 plates per month.
Despite the on-and-off tariff threats, there have been no reductions
of orders or relocations of print orders (to the U.S. or elsewhere), says
CEO Peter Tse. “Publishers obviously have had time to evaluate
alternative print options and are ready to implement contingency
plans for some scope of their print production program,” he says.
“For now, it remains very much a wait-and-see scenario.”
Business development is picking up speed, with the CTPS team
seeking new opportunities and engaging in RFQs. “As far as I can see,
publishers continue to seek print partners—with improved supply
chain capabilities—that work for their program. We are also exploring
noncore printing business with solutions-focused clients, which are a
good fit for our digital and offset print offerings,” Tse says.
Publisher M&As, for Tse, may not be all bad news for his company
in particular and the Hong Kong/China print manufacturing in
general. “With M&A,” Tse says, “comes a sudden increase in the
cumulative number of titles, higher purchasing power, and the need
to keep everything—print orders, works-in-progress, inventories,
and logistics, for instance—easier to track and manage.”
And CTPS, Tse adds, “has the deep supply-chain solutions needed
for the above publishers to implement customized short runs and
digital printing, auto-replenishing inventory and fulfillment pro-
grams, smart warehousing, track-and-trace and anti-counterfeiting
capabilities via our Phygitalbook technology, and distribution
support.”
 Printing in Hong Kong & China
Hung Hing
In the past year, Hung Hing has launched two new business
initiatives (STEMplus and YumMePrint), kickstarted HH
Dream (Vietnam) facility, and acquired Rengo Shunde
(Guangzhou) corrugated factory. “All these will complement
Hung Hing’s core book and packaging printing business,” says
commercial director Christopher Yum.
STEMplus, Yum adds, “is a platform—or a marketplace—to
help publishers, schools, and educational/learning institutions
to promote STEM-related products.” At the recent Hong Kong
Book Fair, STEMplus occupied 50 booths, with schools and
other educational institutions, publishers, and related industry
players displaying STEM products, creating awareness, and
interacting directly with end consumers. (See the sidebar below
for details on YumMePrint.)
As for the 35,000-square-meter HH Dream facility, slated to
commence operating in November, it will initially focus on
supplying packaging products to industries in Hanoi, before
expanding to include export clients in the near future. Rengo
Shunde, Yum says, “significantly increases our corrugated box
manufacturing capacity, broadens our market share and cus-
tomer base, and provides further leverage in expanding our
paper purchasing power to bring about lower costs and higher
efficiency.”
Business from the publishing segment continued to grow last
YumMePrint for On-demand and
Personalized Photo Printing
Enabling consumers to print photos and documents as and when
they like, or need, through a mobile app that is automatically
linked to the nearest photo kiosk is the premise of Hung Hing’s
YumMePrint.
Launched in August 2018, YumMePrint is now available from
12 points—at karaoke lounges, confectionery shops, shopping
malls, and children’s playrooms—in Hong Kong. During a three-
week Sweet Valentine’s event, for instance, Stanley Plaza visitors
were able to print (for free) photos taken amid various love-
themed backdrops at the shopping mall and then attach a person-
alized voice message to their digital photo. At another event in
April—about promoting HSBC’s PayMe service and Rugby Sevens
tournament, of which the bank is the main sponsor—3-D back-
drops and the appropriate costumes allowed bank clients to take
photos, select their preferred border designs, and print them off.
For these two events (and another 23 that used YumMePrint),
the Hung Hing team customized the kiosk and on-screen display,
photo borders, and printing options. Each kiosk is optimized to
print up to 700 photos, and the fine-tuned workflow is simple and
user-friendly.
For event attendees, the whole process—including scanning
the QR code on the event coupon; selecting the photo, photo bor-
60 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
year. “We embarked on a program to create ‘customer stickiness’
by offering more value—including handling of foreign rights
sales for the Chinese market, warehousing and distribution
within Asia, and technology solutions via our Beluga sister
company—to publishers that have long been on our client
roster,” says Yum, whose company has also experienced growth
in the premium/promotional materials segment, specifically for
fast-food retailing companies.
Mapping clients’ product development and design to Hung
Hing’s manufacturing capabilities is another strategy to promote
customer stickiness. “With value stream mapping, we are able
to reallocate machines and resources to bring about a high-effi-
ciency manufacturing environment that is capable of producing
faster and more affordably for customers,” says executive
chairman Matthew Yum, adding that his U.K. office, for
instance, has a design team and prototyping equipment to enable
quick dummy and sample production for approval, design revi-
sion, and ideation. “In the longer term, this strategy will foster
better interaction and closer partnership with clients.”
Currently, the Hung Hing team is reviewing a high-end
digital printing solution to meet the demand for shorter runs.
“While our digital post-press machines such as Highcon and
Scodix have proven successful,” the senior Yum adds, “we need
to supplement this lineup with an appropriate front-end
solution.”
der, voice record-
ing, an payment
method; and print-
ing copies—takes
less than one
minute.
For event
venue providers, agencies, and brand owners, this solution goes
beyond offering a unique photo experience or launching a specific
product; user behavior, consumer engagement, and data analyt-
ics all come into play. Statistics from the Sweet Valentine’s
event, for instance, revealed that the peak YumMePrint usage
was on February 13, which will help the event organizer with their
promotional activities for the following year.
“The workings behind the premise are simple: We provide the
hardware, design, and technical support, and you offer memora-
ble experiences that your event attendees or visitors can bring
home and share with their friends and families,” says Nicholas
Yum, product development manager at Hung Hing. “YumMePrint
is about creating convenience and meeting a growing demand for
personalized photo printing, especially for the younger, tech-
savvy generation.”
 Printing in Hong Kong & China
Imago
Imago’s key manufacturing areas are now China, Europe (eastern
and western), Hong Kong, India, Malaysia, South Korea,
Thailand, and Vietnam, says president and CEO Howard Musk.
“Our clients are increasingly asking us to provide several options
and measuring the cost and schedule to see what works best for
a given project, and also asking for a plan B in case the editorial
work runs late,” Musk explains. “If we print in Europe, for
instance, we can typically deliver to a U.S. warehouse within
eight weeks of order placement, and the pricing will fall between
Asia and U.S. prices, and our clients will still get sheet-fed
quality with strong sewn binding.”
Within its factory network, Musk sees two clear trends:
“There is increased automation in areas that were traditionally
done by hand to mitigate rising labor costs. Then there is
increased awareness of greener practices such as moving over to
plate systems that do not require chemical processing.”
Client-side, there is an interest in reducing plastics, Musk
says. “If there is a plastic component, clients want to find cre-
ative ways to recreate the plastic part using paper and board, or
switching out plastic tape on cartons to paper-based tapes.” His
team also did tests using biodegradable shrink wrap this year.
“Unfortunately, we don’t think it is quite there yet for our
industry as it is still uneven during shrink-down. But it is fine
for lower-end products, even though it doesn’t give a crisp, clean
appearance. We will definitely monitor this, as I’m sure the
technology and material will improve further.”
At the factories, Hybrid UV (H-UV) printing is growing. “It
has helped us to print very high ink coverages without the need
for a varnish to prevent ink rub,” Musk says. “This is a major
advantage over normal offset printing, where high ink coverages
can cause gas ghosting even with varnish, and requires a longer
time for drying. We are now exploring using H-UV presses to
print on uncoated paper to deliver bright and punchy pages as
there is no ink dryback issues.”
Starting this month, Musk and his team are offering a new
type of digital proof—at lower cost—through its partner
Bright Arts. “We can proof on actual production stocks and
apply finishes.”
Jade Productions
Mainstream publishers were more conservative in the past year, says
managing director Ken Kong. “In contrast, we are getting more
work from self-publishers, who require more hand-holding and
guidance throughout the print manufacturing process.”
So while it is impractical to expect self-publishers to return
within a short period with new orders—since they simply do not
publish that often or many—“We have received enough recom-
mendations and referrals to know that we have delivered the goods.
And that helps our business and credibility a lot,” Kong adds.
More reprints are coming in recently, Kong says. “But the current
economic situation is not very positive, given the tariffs and potential
recession. So we have been much more open to suggest cost-cutting
measures to clients, such as using cross-grain paper to minimize cut
waste, even though we much prefer using the correct grain.”
As a small print management company, Kong’s policy is to make
sure his team fully understands the ideas and expectations of each
client and project. “We have to make product that exceeds their
expectations, or modify the specifications to make it much more
cost-effective,” Kong says. “Our rule is to analyze and share with
clients the pros and cons of each option and solution. In other words,
we must give the client a good reason to choose Jade Productions
over other companies.”
At times, the team has to question the client on certain job
specifications and drill down to the rationale behind them. He cites
a recent example: “One self-publisher came to us for a quotation for
300 and 500 copies, which is either too high for on-demand digital
printing or too low for offset printing. He also specified seal var-
nishing as one of the requirements, which pushes the manufacturing
cost even higher. During the ensuing conversations, I found out that
the publisher’s printing experience was limited to certain brands of
digital printing presses, which gave him the impression that seal
varnishing was an essential element. I had to explain that such
finishing was unnecessary in offset printing but would be a nice
touch if his budget allows.”
The above example, Kong notes, shows that “communication,
understanding, and patience are crucial to forging effective publisher/
printer partnerships, as well as in delivering the right product at the
right price—not just for the client but also for the client’s clients.”
W W W . P U B L I S H E R S W E E K LY. C O M 61
 Printing in Hong Kong & China
Leo Paper
For Leo Paper, 2019 started with the successful application of
an investment license for Vietnam’s Hai Duong province. “We
will build a new factory there in line with our Leo China Plus
development strategy. This factory, expected to be operational
by 2021, will enable us to remain competitive beyond our
China-based production base,” says director Alvin Lai, adding
that “it will increase our OEM capacity while mitigating pos-
sible operational risks”.
Meanwhile, its Factory Next initiative continues to gather
momentum. “We kicked off ERP 2.0 project in the first quarter,
marking a key milestone in our group’s Industry 4.0, SMART
factory, and digital transformation journey. The ERP 2.0
project, taking about 30 months, will start with our Heshan
factory and is aimed at enhancing the overall supply chain effi-
ciency,” adds Lai. “Overall, our leagility progress—along with
various SMART and lean manufacturing projects such as pilot
workshops, SMART management, AI, cyber physical system
(CPS), and Gemba Kaizen—have reignited our passion for lean
culture after we initiated lean manufacturing more than a
decade ago. We fully expect the lean adoptions and applications
to become more in-depth and practical as we reinforce its strate-
gies and implementations companywide.”
Inspiration Through Magic Paper World
In the past decade, Leo Paper has been increasing the emphasis
on edutainment and interactivity in its R&D direction for new prod-
uct ideas. “Magic Paper World, our trademarked value-added solu-
tion, includes many of our new, in-house-developed microinnova-
tions and techniques,” says Henry Woo, general manager of Leo
Paper’s OEM business development.
MPW is focused on creating products that are engaging, fun,
and interactive. It is presented as a series of seven board books
with different applications to enhance a page design so as to
inspire new ideas for clients and, ultimately, to help elevate the
interest in reading for children, which are the end consumers.
“At the crux of it, MPW is about giving our clients a competitive
edge through the delivery of unique and differ-
entiated products,” Woo says. “By putting the
applications together in a series for quick
access and reference, we seek to make the
innovative application process easier and
faster for them.” Woo’s team will provide
advice and tips on applying the appropriate
MPW application to transform ideas into novel
products, or to increase the play and fun ele-
ments in existing products, in order to satisfy
different clients’ wide-ranging needs.
The challenge in offering a new solution,
Woo says, is always about finding the best fit
62 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
Green practices continue at Leo Paper, which is known for its
many ecofriendly initiatives and recognitions. “More than 85%
of our group’s annual volume of paper purchase comes from
ecofriendly sources and certified forests,” says Andy Lau, general
manager for sales, adding that “we have developed and installed
a closed-loop heat pump drying system for sludge drying, which
has successfully reduced water content in the sludge from 83%
to 30%.”
Striving to be a green printer with zero waste and zero nega-
tive environmental impact is one of Leo Paper’s major goals.
“Our practices, processes, and methodologies are extensive and
continuous, and they include saving energy, reducing carbon
emissions, controlling and preventing air pollution, eco-utili-
zation of resources, and ensuring green facilities,” adds Lau, who
is also paying close attention to the louder plastic-free calls from
clients in Europe and the U.K.
“The plastic-free movement has taken over our facilities,
covering areas such as accessory purchasing and production,
where we seek to minimize the use of plastics, especially for
single-use plastic products in factory areas, packaging process,
and logistics,” Lau says. “This movement will be carried out in
tandem with our Green Harmony and Zero-waste
eco-initiatives.”
for clients and their products. “Clients also have key concerns
when considering new product ideas, including consistent quality
control, reliability of new technology and techniques, production
workflow design, and cost containment. On our part, we ensure
that each MPW application is suitable, good, and safe for the end
consumers, particularly if these are children.”
With MPW, Woo says, clients can be assured that the ideas and
techniques have been thoroughly tested. “Furthermore,” Woo
adds, “when clients adopt the trademarked MPW solution and
place the print orders with Leo Paper, they will get the expected
product quality, in addition to protecting their ideas from piracy and
counterfeiting. That is a big win for everybody.”
 ZN']GXJVJL  63

WE
BOOKS
printing is our passion

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Another year, another award. It is our pleasure to be your printing team,

with our expertise and your ideas,
we will only do better and better every year.

Tel: (852) 2555 2438

Fax: (852) 2814 0524
Untitled-1 1 9/26/09 10:49:50 AM

Email: info@magnumoffset.com.hk
Website: http://www.magnumoffset.com.hk

Magnum Ad.indd 1 3/7/2018 4:03 PM

 Printing in Hong Kong & China
Magnum Offset
Inspiration, communication, diversification, active participa-
tion, and continuous self-improvement encapsulate Magnum
Offset’s business stance, says overseas sales manager Alice Fan.
“We believe in not keeping silent nor do we want our clients to
be silent. Otherwise, they will go away silently and that will be
bad. Paying attention to market trends and sitting down with
clients is part of our culture. So is being positive and proactive
in our communication and collaboration.”
Listen, share, collaborate, and anticipate (ideas and opportu-
nities) are the basics, Fan adds. “As much as possible, we prefer
going direct to the clients instead of through third parties. In
other words, we want to reduce the filters and get to know
exactly whom we deal with. In recent months, for instance, we
are accelerating the growth of our direct customer base to
include schools and learning institutions, business chambers,
and art galleries.”
Additionally, the solutions from Magnum Offset have been
expanded to include design, typesetting, security printing, and
marketing and branding collaterals. “Our verticals have broad-
ened to cover not just the publishing industry but also financial
services, insurance companies, educational institutions, and
The Case for Digital Print Enhancements
High gloss in one pass? No problem. Short run with hot and cold
foil applications? Sure. Spot varnish on different paper, plastic,
and synthetic stocks? Why not?
Adding the wow factor to a book cover or content pages used to
take up too much time and money. While the money part remains
arguable (depending on the intended wow factor), the enhance-
ment and embellishment process is definitely much faster nowa-
days.
Whether it is about applying spot colors, special coatings, foils,
or much more, there are now digital enhancement presses that
can do it all. And the best part is: most of these presses are com-
patible—and inline—with offset and digital printing lines.
Take foil stamping, for example. With digital enhancement
presses, there is no need to create metal dies, outsource to a spe-
cialty house, spend hours on the complex setup, or wait for days
for the printed layers to dry properly
prior to stacking or moving on to the
next finishing or binding process.
Additionally, you can now generate
a proof or prototype right away—
with no fuss and little muss—or
produce a small batch, just enough
for immediate use or inventory.
In recent months, many print
manufacturers (including those in
64 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9
retail industries. As such, we also offer a comprehensive solu-
tions package that ranges from data printing to lettershopping
and distribution, in order to add more value for our clients.”
Many event-based clients have been using Magnum Offset’s
exhibition services. “Printing aside, we provide banners, display
stands, premium gifts, and other materials that these exhibitors
need to make their participation a success,” Fan says. “We also
deliver the items to designated locations in Hong Kong and
China. We are a one-stop solution for exhibitors, especially for
foreign companies looking for convenience, reliability, and
quality services.”
Throughout the 30-odd years that it has been operating,
Magnum Offset’s core business strategy has remained the same,
Fan says; “Keep the machines, staff, and factory running—instead
of idling—has always been the principle. And since our position
has not changed over time, our clients know it very well.”
Currently, the market is about hybrid printing, Fan notes.
“So in the past 12 months, we have been aggressively investing
in pre- and post-production equipment for digital solutions
instead of on printing presses. As I mentioned earlier, we listen
to clients and follow the market trends, and hybrid solutions is
what we are hearing from the ground.” ■
Hong Kong and China) are turning to two major digital enhance-
ments players for such solutions: Scodix and Konica Minolta MGI.
Scodix announced two new presses—Ultra 101 and 202—ear-
lier this year. Fully compatible with offset and HP Indigo presses,
the 202 offers nine enhancements, including Braille, crystal, foil,
glitter, metallic, and sense. With the last-mentioned application, it
is about raised spot UV coating to provide both visual and tactile
effects. Adding clear polymer at varying heights to simulate texture
onto a printed page has never been easier or more fun.
Konica Minolta MGI’s JETvarnish 3-D press, a direct competitor
to Scodix, also offers dazzling effects and high-impact decorative
enhancements with special coatings and foils. (And the jury is still
out on which press is better or the best.)
One big selling point, especially in this eco-consciousness
era, is that these digital enhancement presses have no need for
make-readies, plates, screens, or
dies, and they generate far less
waste compared to traditional fin-
ishing machines or methods. Daz-
zling effects aside, there is the
capability for variable data pro-
cessing, which makes personaliza-
tion a breeze for promotional and
on-demand projects. So what’s not
to like?
 Printing in Hong Kong & China

A Selection of Inspiring Projects

Now that high-end printing with special visual and tactile embellishments is made possible with
push-button simplicity on the presses, producing a show-stopping title is no longer a dream. But an
outstanding project is not just about using the latest machineries, different substrates, or various
gimmicks. It is about translating the content on the pages into value-added offerings for the reader.
Or transforming the usual paper, board, glue, and accessories into something wonderful within the
client’s budget. Or reimagining a mundane topic by creating an impactful first impression. The
following projects fully exemplify these criteria.
Tomorrowland’s The Book of Wisdom
Published to celebrate Tomorrowland 2019, the annual electronic dance music festival in Bel-
gium, this book is a visual treat with lots of production challenges. Tomorrowland’s in-house
creative team developed The Book of Wisdom, including the original story, illustrations, and
design; Melcher Media helped bring to life the various visual elements in partnership with
Imago.
The 160-page book is nestled in a drawer inside a slipcase, which has printed ivy pattern back-
ground on gold foil paper enhanced with matte lamination and embossed floral pattern. A ribbon
pull-tab on the drawer reveals The Book of Wisdom with a flocked blister below holding a bracelet.
The book’s case prints on gold metallic foil with two levels of embossing and a leather pattern
graining over scuff-resistant matte lamination to give it an antique feel. The inserts in the book
include a double gatefold, a map, a library card, a letter, a Post-it note, and a tarot card. “The unexpected and exciting part of this book is
the hidden compartment in the front panel of the case that houses the tarot card,” says Imago’s president and CEO, Howard Musk. “To
keep the hidden pocket from being obvious, a sticker was printed on an uncoated sticker stock with low-tack adhesive that matched the
same design as the endpaper. This was placed over the existing endpaper, where it was carefully aligned in register with the endpaper pat-
tern. The low-tack adhesive allows the sticker to be removed and replaced, and not tear the endpaper that sits beneath it.”

Divine Encounters
Produced for photographer and self-publisher Hans Kemp, the 400-page illustrated book,
available in trade and luxury editions, is a testament to Jade Productions’ consultative and
client-centric approach. “We had numerous face-to-face meetings and email exchanges
with Hans before finalizing the book format, materials, special effects, additional inserts,
and other gimmicks that we could offer within the budget given,” says production director
Chan Hon Kwong, who had to make sure that the book came out in time for an exhibition
in the Netherlands.
Chan had just sufficient time to indent a special sized text paper—to minimize costs and
wastage while meeting the minimum tonnage requirement—and produce about 2,000 cop-
ies, which were more than what Kemp had expected.
“The savings from the text paper further afforded Hans the leeway to choose special materials for the luxury edition,” adds Chan,
whose team then secured a much more expensive nonstandard duotone stock for special inserts.
“We also used the savings to add spot UV and embossing to the trade edition to make it more
eye-catching.”

China Resources Power Holdings Annual Report 2018

A print project with LED lights sounds easy, if not for the need to have the lights embedded in very thin
and delicately finished cover. “We had exactly one week to produce this annual report from start to fin-
ish, and there was practically no room for error on the components, fittings, or printing,” says Magnum
Offset’s overseas sales manager, Alice Fan, adding that “staff professionalism, teamwork, and tight
relations with long-term suppliers and manufacturers carried the day.”
Her client, Fan adds, “wanted to wow their clients with an outstanding product, while we simply want
to do our best for our client and make them happy. It was mission accomplished for both parties.”

66 P U B L I S H E R S W E E K L Y ■ A U G U S T 2 6 , 2 0 1 9