Major Shareholder and Core Management Members Opt for Scrip Shares as a Vote of Confidence to Business Outlook

HONG KONG SAR – Media OutReach – 13 September 2021 – Yip’s Chemical Holdings Limited (SEHK: 00408) (“Yip’s Chemical” or the “Group”) announced details of the Scrip Dividend Scheme in relation to the 2021 interim dividend and the Group’s 50^th anniversary special dividend.  Shareholders whose names appeared on the register of members of the Group at the close of business on 8 September 2021 can choose to receive the dividends wholly or partly in the form of allotment of new Shares (“Scrip Shares”) in lieu of cash. The issue price of the Scrip Shares is set at HK$4.95 per share. Shareholders will be eligible to receive a maximum of 88 Scrip Shares for every board lot (2,000 shares) based on an aggregate amount of HK22 cents for the interim and 50^th anniversary special dividend per share.

 

As a vote of confidence to the business outlook of the Group, Mr. Ip Chi Shing, Non-Executive Director, Chairman of the Board and a substantial shareholder of the Group, and core management members including Mr. Yip Tsz Hin, Executive Director, Deputy Chairman of the Board and the CEO, as well as Mr. Ip Kwan, Executive Director and the Deputy CEO, have indicated that they intend to receive the dividends in Scrip Shares.

 

The issue price of the Scrip Shares is set at HK$4.95 per Share, which is the average closing price for the 5 consecutive trading days commencing from 2 September 2021 to 8 September 2021 (both days inclusive). The issue price represents a slight discount to today’s (13 September 2021) closing price of HK$5.03.

 

The Scrip Dividend Scheme will give eligible shareholders an opportunity to increase their investment in the Group and share the fruits of the Group’s success at market value without incurring brokerage fees, stamp duty and related dealing costs. The Scrip Dividend Scheme will also benefit the Group to the extent that cash will be retained for use as working capital.

 

In order to facilitate the trading of odd lots of the shares, the Group has appointed Infast Brokerage Limited as the matching agent (the “Matching Agent”) to provide matching service to eligible shareholders who wish to acquire odd lots of the shares to make up a full board lot of 2,000 shares, or to dispose of their holding of odd lots of the shares. Holders of the shares in odd lots who wish to take advantage of this matching facility may contact the Matching Agent during the period from 9 a.m. on 13 October 2021 (Wednesday) to 4 p.m. on 12 January 2022 (Wednesday). Contact details of the Matching Agent could be found in the Group’s circular dated 14 September 2021. If eligible shareholders wish to receive their respective dividends in the form of Scrip Shares, they should complete and sign the election form appended in the circular and return it to the Group’s branch share registrar, or confirm with the banks and stockbrokers, no later than 4:30 p.m. on 29 September 2021.

About Yip’s Chemical Holdings Limited (Incorporated in the Cayman Islands with limited liability) (SEHK: 00408)

Yip’s Chemical Holdings Limited (“Yip’s Chemical” or the “Group”) was established in 1971 and listed on the Hong Kong Stock Exchange in 1991. The Group focuses on the production and sales of petrochemical products, including solvents, coatings, inks and lubricants, with its nationwide sales network covering all major provinces and cities across China. It is the largest producer of acetate solvents in the world, China’s largest manufacturer of inks and one of the top 20 ink manufacturers globally*, as well as one of the top 10 coatings manufacturers in China^{^}. On top of products, the Group has strived to provide value-added services to consumers in recent years, such as automobile lubricant changing and maintenance as well as personal and household sanitizing.

Coating brands operated under the Group are “Bauhinia”, “Camel”, “Aquapro”, “Hang Cheung” for industrial paints and “Da Chang” for resins. The Group also owns brands including “Bauhinia Variegata” for inks, “Hercules” for automotive lubricants and “PACOIL” for industrial and specialty lubricants. The automotive maintenance brand “Damai” and sanitizing brand “EUCA” are also brands under Yip’s Chemical.

To achieve long-term sustainable development, the Group will continue to move in the direction supportive of green living, embracing development that is “environmentally friendly”, “end-user oriented” and “service oriented”.

^* According to China Inks Association (中國油墨協會), Bauhinia Ink is the largest ink manufacturer in the PRC in terms of annual sales volume in 2019. It ranked 16^th in the “2021 Top International Ink Companies” released by the US inks magazine Ink World in terms of sales revenue.

^{^} Bauhinia Paints ranked 65^th in the “2021 Global Ranking of the Top Manufacturers of Paints and Coatings” released by the US coatings magazine Coatings World and is among the top 10 in the PRC in terms of sales revenue.

Learn more about Yip’s Chemical on:

Website: http://www.yipschemical.com/

Facebook: https://www.facebook.com/yipschemicalholdings/

Wechat:

#Yip’sChemical