Yip’s Chemical launches coatings plant in Vietnam

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 tons. 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.

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 localized 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 localization 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!"

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 optimization. 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 realize its performance outlook, seize the growth momentum of industrial coatings, and focus resources on driving business development.

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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.