Yip’s Chemical (408.HK) Announces Official Opening of New Plant for its Coatings Business in Vietnam

【FOR IMMEDIATE RELEASE】

23 April 2026 

Yip’s Chemical Announces Official Opening of New Plant for its Coatings Business in Vietnam

Seizing the strong growth momentum of industrial coatings, building a high-end plastic coatings production base, and deepening the Southeast Asian supply chain layout

（Hong Kong, 23 April 2026）Yip’s Chemical Holdings Limited (SEHK: 00408) (“Yip’s Chemical” or the “Company”, together with its subsidiaries collectively referred to as the “Group”) is pleased to announce that the new plant of its coatings business in Vietnam, "Hang Cheung (Vietnam) Advanced Materials Company Limited"（CÔNG TY TNHH VẬT LIỆU CAO CẤP HANG CHEUNG (VIỆT NAM)）("Hang Cheung Vietnam"), officially opened on 22 April, 2026. This move marks a critical step for the Group in expanding into the Southeast Asian market and optimising its global supply chain layout. It further consolidates the Group's strategic initiatives for overseas expansion and strengthens its localised service capabilities for Southeast Asian and overseas customers.

Establishing a Foothold in the Core Hub of Haiphong to Strengthen Southeast Asian Market Layout

The new Hang Cheung Vietnam plant is located in the Dinh Vu-Cat Hai Economic Zone in Haiphong City, Vietnam, covering an area of over 7,200 square meters with an annual production capacity of approximately 3,000 metric tonnes. It is equipped with a precise color matching system, rigorous quality control mechanisms, and a globally certified professional testing laboratory. Upon commencing production, the new plant will primarily serve high-end plastic coatings customers in Southeast Asia. Relying on the strong support of Hang Cheung Vietnam's local technical team and the domestic professional team of the coatings business, it will significantly improve supply chain efficiency and flexibly respond to the growing demand in the Southeast Asian market. With the reshaping of the global supply chain, Southeast Asia has become the production center for many industrial customers. The completion of the new plant not only strongly supports the Group's long-term development goal of "basing in China, looking to ASEAN", but will also further consolidate the coatings business's leading position in the high-end plastic coatings sector.

Hang Cheung Vietnam held a grand opening ceremony at the new plant on April 22, 2026.  Guests invited to attend the ceremony included Mr. Ip Chi Shing, Tony, Chairman of Yip’s Chemical; Mr. Ip Kwan, Francis, Chief Executive Officer of Yip’s Chemical; Mr. Chan Chuen Sang, Raymond, President of Bauhinia Advanced Materials Group, a subsidiary of the Group; along with management, employees, and business partners of the coatings business.

Mr. Ip Kwan, Francis, Chief Executive Officer of Yip’s Chemical, remarked in a speech: "In the context of the current volatile and challenging global economic environment, we chose to take root in Vietnam because we firmly believe in its potential and resilience. This is not just an expansion of our production base, but an important milestone in our strategic blueprint. We will use this as a starting point to bring Yip's Chemical’s professional technology and services more directly to the Southeast Asian market. Looking ahead, this plant will become the core engine for our plastic coatings development. We will continue to leverage the Group's R&D advantages in the chemical sector, dedicating ourselves to providing high-quality, eco-friendly coating solutions for toys, electronics and various consumer goods. Through localised production, we can respond to customer needs more quickly and accurately capture opportunities in a highly unpredictable market, creating new business growth points."

Mr. Chan Chuen Sang, Raymond, President of Bauhinia Advanced Materials Group, stated in a speech: "This is not only a milestone monument in the Company's overseas journey, but it also carries our steadfast dream of deepening our roots in overseas markets and making our business bigger and stronger. It highlights our original mission to always stay close to our customers and serve them with dedication, and reflects our company's entrepreneurial spirit of daring to explore and make breakthroughs in the face of a complex and ever-changing market environment. The Vietnam plant achieved the breakthrough from conception to completion in just one year, a result that stems from the close cooperation of all parties. In the future, the market expansion, efficient operation, and localisation of the Vietnam plant will require the unity and concerted efforts of every colleague on the frontlines and in the back office. I hope everyone will always uphold our original intentions, work together with one heart and mind, face challenges head-on, seize opportunities, and together build the Vietnam plant into a benchmark for the Company's overseas business, jointly writing a wonderful answer sheet for the Company's overseas development!"

Accelerating the Pace of Development by Riding the Growth Momentum of Industrial Coatings 

According to the 2025 annual results previously announced by Yip's Chemical, the Group's coatings business demonstrated strong resilience in a challenging market through product portfolio optimisation. The gross profit margin of the coatings segment increased by 3.6 percentage points to 29.8%, and the segment profit surged by 623% to HKD 52.2 million, with industrial coatings performing exceptionally well. The successful commencement of production at the new Hang Cheung Vietnam plant in the second quarter of 2026 is an important layout for the Group to realise its performance outlook, seize the growth momentum of industrial coatings, and focus resources on driving business development.

Looking ahead, Yip's Chemical will continue to be committed to building "a leading development platform for chemical businesses". The official operation of the Vietnam coatings plant will directly enhance the Group's competitiveness in the Southeast Asian market while strengthening the global operational efficiency of its Chinese headquarters. The Group will also actively seek strategic investment and merger and acquisition opportunities with technological content to accelerate its pace of development, creating more robust and long-term value for shareholders and stakeholders.

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About Yip’s Chemical Holdings Limited (Incorporated in the Cayman Islands with limited liability)

Founded in 1971 and listed on the Main Board of Hong Kong Stock Exchange (SEHK: 00408) since 1991, Yip’s Chemical has been dedicated to the chemical industry for more than half a century.  The Group’s long-term vision is to become “a leading development platform for chemical businesses” driven by green, innovative technology, professional services and highly respected brands that enrich people’s lives.

The Group’s core businesses include inks, industrial and architectural coatings, specialty resins, lubricants and chemical vapour recovery and treatment. The core businesses have established leading positions in China in their respective sectors. “Bauhinia Variegata” is the largest inks manufacturer in China; “Hang Cheung” coatings holds a leading position in China’s high-end plastic coatings segment; Bauhinia Advanced Materials Group also operates well-known brands including “Bauhinia” and “Camel” paints as well as “Da Chang” polymers; “Hercules” and “Pacoil” lubricants rank among the market leaders; “Sino-Hypro” is recognised as a leading enterprise in chemical vapour recovery and treatment in China. The Group is also a core investor in “Handsome Chemical”, the world’s largest acetate solvents producer.

Leveraging its stable shareholder structure, extensive nationwide manufacturing and sales network, and a dynamic portfolio of strong businesses, the Group has built a robust foundation in the domestic chemical industry. Going forward, the Group will drive sustainable innovation in chemical operations and accelerate the development of a more scalable and resilient platform.

Learn more about Yip’s Chemical on: www.yipschemical.com

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