Yip’s Chemical’s Proposed Spin-off of Ink Business Receives Approval from the Hong Kong Stock Exchange

Yip’s Chemical Holdings Limited (SEHK: 00408) (“Yip’s Chemical” or the “Group”) is pleased to announce today that the Group has achieved new progress in relation to the proposed spin-off of the A shares of Bauhinia Variegata Ink & Chemicals (Zhejiang) Limited (“Bauhinia Variegata Zhejiang”), which is principally engaged in the ink business, for a separate listing on the Shenzhen Stock Exchange. The proposed spin-off has obtained approval from the Hong Kong Stock Exchange. An EGM will be convened to obtain approval from the independent shareholders of the Group. On the assumption that the proposed offering size shall represent 25% of the enlarged issued share capital of Bauhinia Variegata Zhejiang, it is currently expected that the total gross proceeds to be raised under the proposed A share listing would be around RMB400 million to 450 million. The actual amount will be subject to the actual number of new A shares to be issued, the offer price, the regulatory approvals by the Shenzhen Stock Exchange and China Securities Regulatory Commission, as well as the market conditions, amongst other factors.