After HK$4.2M Q1 Loss, Hong Kong-Listed Printer Million Miles Eyes 3D Printing JV

COVID-19 has weighed on the results of Hong Kong-listed printing and packaging company Million Miles Printing, which reported a first-quarter net loss of HK$4.2 million. In a bid to open new business avenues, the company has announced plans to form a joint venture with 3D Tribe (Shanghai) Technology Co., Ltd. and move into the manufacture of 3D printing equipment and consumables.

Joint Venture to Focus on 3D Printing Equipment and Consumables

In a July 22 announcement, Million Miles Printing said both it and 3D Tribe (Shanghai) Technology see strong application potential in industrial-grade FDM 3D printing. The two sides have signed a joint venture cooperation memorandum and intend to establish a JV that will handle R&D, production, brand promotion and market sales of 3D printing equipment, consumables and related products.

Publicly available information shows that Million Miles Printing is one of the earliest Hong Kong-funded printing and packaging enterprises to enter the mainland China market. It can currently produce more than 700 sets of printing plates, 3.8 million printed sheets and 570,000 bound books per day. Beyond book production lines, the company also operates color box packaging and offers integrated services such as design, assembly and hand binding.

Founded in 2006, 3D Tribe (Shanghai) Technology has focused on the 3D printing sector and is a provider of PEEK 3D application solutions. As a Shanghai high-tech enterprise, the company pursues independent innovation and now holds more than 40 patents and software copyrights.

Under the memorandum, once the joint venture is formed, Million Miles Printing will hold a majority controlling stake, while day-to-day operations will be managed by 3D Tribe (Shanghai) Technology. Within 90 days from the signing date, Million Miles Printing will conduct due diligence on 3D Tribe (Shanghai) Technology.

First Quarter Net Loss Reaches HK$4.2 Million

As a Hong Kong-listed printing and packaging enterprise, Million Miles Printing operates factories in Shenzhen and Hong Kong and supplies printed materials to international publishers in markets including the United States, the United Kingdom, Australia and Europe. However, COVID-19 and the global economic downturn reduced sales orders, and the company recorded a net loss of HK$4.2 million for the first quarter ended March 31.

In the announcement, Million Miles Printing noted that 3D Tribe (Shanghai) Technology owns multiple 3D printing invention patents and that its products can be widely used across industries. The board believes that, if the joint venture cooperation is implemented, it could improve the group's printing equipment, strengthen the technology attributes of its printed products, broaden its PEEK 3D printing customer coverage and thereby improve financial performance.

At present, the terms and conditions of the joint venture cooperation are still under negotiation, and no legally binding agreement has been signed. The industry will be watching to see whether the cooperation is formally implemented and whether it can help Million Miles Printing secure new business development opportunities in new fields.

—This article is adapted from China Packaging Network (pack.cn); original link: http://news.pack.cn/show-377879.html