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ASX listed YPB to help Chinese Government thwart $14 billion counterfeit market

Anti-counterfeiting technology company, YPB Group, has signed a supply contract with the Chinese government’s ministry of public security to provide its invisible tracer products and T1 scanners.

The contract is with the First Research Institute of the MPS for a trial of YPB’s anti-counterfeit products and services, and will have an initial focus on access control and personnel identification.

The company is also making a smartphone app to help Chinese consumers spot fakes by authenticating branded products as genuine.

YPB’s realProtection product detects rare-earth based trace elements, or tracer particles in the product, detectable only by a scanner and, in future, a phone app.

A rare earth element or rare earth metal is one of a set 17 chemical elements in the periodic table.

According to a company statement, it provides an invisible and indestructible anti-counterfeit solution that allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting.

The greater-Asian anti-counterfeit authentication market is valued at $US14 billion ($US14.91 billion) a year and growing 20 per cent each year.

YPB listed on the ASX on August 7, after a $US3.75 million new listing offer.

YPB Group is one of 75 companies licensed to provide anti-counterfeiting solutions in China.

YPB executive chairman and chief executive, John Houston, said the company had hit the ground running post its ASX listing earlier this month in line with an aggressive sales and marketing business plan.

“This includes growing our existing client base and expanding the Company’s product and service offering,” he said.

“The contract for the PRC’s Ministry of Public Security forms part of the first stage in this process, and we continue to be excited by the level of interest in our unique anti-counterfeit technology and its potential applications.”

In mid-2013, YPB commenced the rollout of its products.

The company now has nine signed customer contracts in place (contracts typically of 3-5 year duration).

YPB’s tracer products enjoy high gross margins on sales (up to 90 per cent), providing an excellent foundation for generating significant potential earnings, according to a company statement.

“YPB has also completed extensive proof-of-concept trialling with a range of additional candidate customers across numerous product categories,” a company statement said.

“On the back of these successful trials, the company is now poised to accelerate execution of sales contracts, and also to attract mobile consumers with its App in the second half of 2014.”

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