Revolutionary Anti-Counterfeit Tracer Technology Company, YPB Group Highlights Expansion Plans After Its ASX Listing

Counterfeiting has become pervasive worldwide.  Bottled water, milk, shampoo and medication all form part of the $1.7tn counterfeit goods market, and have all been the subject of high profile seized shipments in Asia in recent times.  However, this is not a victimless crime with between 200,000 & 300,000 dying annually from fake pharmaceuticals in China highlighting there is a serious human element to this megatrend.

Product integrity is critical for the maintenance of public health and consumer confidence.  Over US$80 Billion spent fighting counterfeiting worldwide, with US$14 billion spent in Asia alone, to maintain integrity and reduce counterfeiting.

The current incumbent technology is the RFID chip but has several drawbacks. John Houston, Managing Director and Founder of YPB Group explains “RFID is a physical product – it can be removed, destroyed and tampered with.  It is also unsuitable for the FMCG market where margins are tight and solutions have to be at least 90% cheaper.

YPB Tracer Technology

YPB is the only company licensed in China that sells invisible tracer solutions to fight counterfeiting. “Our patent-protected tracer technology is a game-changer in the industry.  It’s a solution that can be applied to any product, which can then be scanned using the YPB Scanner.  If a user gets a green light, they know it’s genuine.” YPB’s technology works for the Brand Owner, but is also viable for consumers with the YPB revolutionary iPhone app.  “It’s low-cost, invisible, indestructible and easy to introduce to the supply chain, all this and still maintains a gross margin of up to 90%.  It is the ideal product for this market”, continued Houston on the technology that has had $10M invested into from inception to today’s position from the founder and private investors.

Investment has gone to operational and sales infrastructure in Beijing, Shanghai and Chengdu.  With this investment, YPB has nine contracts in place, which lock in 3 -5 years of recurring revenue with low ongoing costs.  In such areas as food packaging, textiles, electrical equipment, cigarette packaging, security printing demonstrates the diversity of the product.

ASX Listing Funding the International Growth Strategy

YPB Group is due to be listed on the ASX in late July.  Funds raised from the IPO allow YPB to commence the expansion of its Pan Asian footprint, as well as source further distributors in Asia, US and Australia to add to the existing European distributor.  This provides a platform for creating significant shareholder value through strong & reliable cash flows on a global scale.

YPB plans to go direct to consumer with its patent pending mobile app that can scans tracer-enabled barcodes to determine legitimacy.  This provides the potential to arm over 500 million smartphone-using consumers with anti-counterfeit tools in China.  This positions as an exciting high growth, global business in hands of consumers worldwide.

As an experienced international entrepreneur, John Houston he has successfully grown and exited a number of companies including turning around and selling Inter-touch for US$70million cash at 70x EBITDA to NTT DoCoMo of Japan plus building and running huge mobile phone Companies around the world for Hutchison and Orange.  He was looking for the next big opportunity, which he found in YPB  “Long term growth stories are rare, but YPB’s anti-counterfeit technology ensures we can capitalise on this mega-trend and deliver investment returns for many years.”