Yip’s Chemical to Acquire Approximately 60% Interest in a Leading Enterprise in Chemical Vapours Emissions Management for RMB288 million
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【FOR IMMEDIATE RELEASE】 24 October 2025
Yip’s Chemical to Acquire Approximately 60% Interest in a Leading Enterprise in Chemical Vapours Emissions Management for RMB288 million
The transaction facilitates expansion into the specialised segment for the management of chemical vapours emissions, accelerating the transformation into a leading development platform for chemical businesses
(Hong Kong, 24 October 2025) – Yip’s Chemical Holdings Limited (SEHK: 00408) (“Yip’s Chemical” or the “Company”, together with its subsidiaries, the “Group”) today announced that its indirect wholly-owned subsidiary, Yip’s Puricycle Management (Shenzhen) Company Limited, has entered into a conditional sale and purchase agreement to acquire an aggregate of approximately 60% equity interest in Beijing Sino-Hypro Petrochemical Tech. Co., Ltd. (“Sino-Hypro”), a leading enterprise in the PRC engaged in the research, design, manufacturing and provision of specialised systems solutions for managing chemical vapours emissions generated during the production, storage and transportation of chemicals, oil and gas. This transaction marks a key step in the Company’s strategy to diversify its business portfolio, enhance its technological capabilities and tap into niche sectors of environmental protection.
Under the terms of the agreement, Yip’s Chemical will acquire a total of approximately 60% of Sino-Hypro from one of the founders Mr. Zhang Guorui and his spouse. The consideration comprises an initial cash payment of RMB288 million and a contingent component, with the final amount determined by Sino-Hypro’s audited consolidated net profit after tax for the three-year period ending 31 December 2028 (“Actual Profit”). Accordingly, the total consideration will range from RMB254.4 million to RMB384 million, subject to the Actual Profit to be achieved between RMB150 million and RMB300 million. Consolidated net profit after tax of Sino-Hypro for the year ended 31 December 2024 amounted to approximately RMB55.7 million. The transaction is expected to close by the end of 2025, subject to customary closing conditions.
Sino-Hypro is well positioned in the chemical vapours emissions management sector. Mr. Zhang together with other senior management and the research and development team, have cultivated deep expertise in this field over the years. The target group holds more than 10 patents and 20 software copyrights covering a wide range of chemical vapours capture and treatment technologies, and has established solid technological barriers. These technologies are extensively used in managing chemical vapours emissions across industries including petrochemical, coal chemical, oil depot, and shipping terminal sectors, allowing customers to benefit from the economic value of the otherwise wasted vapours and from more environmentally friendly processes that are in line with increasingly stringent environmental regulations. Sino-Hypro serves reputable energy companies, major local and multinational chemical companies, and state-owned enterprises across the PRC.
Mr. Ip Kwan, Francis, Chief Executive Officer of Yip’s Chemical, commented, “We are pleased to welcome Sino-Hypro to our chemical businesses platform. This acquisition represents a significant milestone in our strategic expansion into green and technology-driven chemical vapours emissions management sector. This enhances our capabilities beyond our core businesses in coatings, inks, and lubricants, and creates long-term growth and value for our shareholders. We believe that by leveraging Sino-Hypro’s cutting-edge technologies and strong market position with Yip’s Chemical’s extensive upstream supplier network, we can create synergies that support business expansion domestically and internationally. At the same time, Sino-Hypro will continue to expand by seizing opportunities driven by the growing demand for environmental solutions.”
Mr. Zhang Guorui, founder of Sino-Hypro remarked, “We are excited to join forces with Yip’s Chemical, a respected leader in the chemical industry with a robust network and advanced management systems. Since our establishment, we have focused on developing specialised emissions management technologies that address critical environmental and industrial needs. Through this collaboration, we anticipate that Yip's Chemical, with its industry expertise, extensive resources, and professional management team, will support us in improving operational efficiency, deepening our R&D investment to reinforce technological advantages, and expanding our market reach to serve more customers across the globe. We firmly believe that Yip’s Chemical’s platform and strategic vision will facilitate our continued development and growth.”
In 2023, Mr. Francis Ip was appointed as the Chief Executive Officer of the Group. Since then, Yip’s Chemical has been looking for expansion opportunities beyond its current core businesses, particularly in areas that improve the environment and chemicals related to new energy sectors. At the same time, the targeted opportunities must also create synergies with the Group’s core competencies and support long-term development. The acquisition of Sino-Hypro aligns perfectly with Yip’s Chemical’s transformation strategy, accelerating its evolution into a leading development platform for chemical businesses. -End-
Established in 1971 and listed on the Hong Kong Stock Exchange since 1991, Yip’s Chemical’s long-term vision is to become a leading development platform for chemical businesses driven by green, innovative technology and services and highly respected brands that enrich people’s lives. Yip’s Chemical’s core businesses and significant investments in China include:
The Group’s core businesses have established leading positions in China with an extensive manufacturing and sales network covering all major regions. It aims to leverage on Yip’s Chemical’s stable shareholder base, the position as a listed company in Hong Kong, and the strong reputation and experience in the chemicals industry to continuously build and invest in strong businesses in niche markets and grow Yip’s Chemical’s platform.
*Bauhinia Variegata Ink ranked 16th in the “2025 Top International Ink Companies Report” released by the US inks magazine Ink World and ranked 1st in the PRC in terms of sales revenue.
Media and Investor Enquiries Yip’s Chemical Holdings Limited Fax ：(852) 2675 2345
DLK Advisory Limited Ms. Michelle Shi Tel: (852) 2854 8711 Email: michelleshi@dlkadvisory.com File: 408_M&A PR_EN_20251024
24/10/2025 Dissemination of a Financial Press Release, transmitted by EQS News. |
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