Facilitating Pollution Reduction, Carbon Emission Cuts, and Efficiency Gains for the Chemical Industry via "Zero Incineration, Zero Carbon Emission" Pure Physical Recovery Technology

(Hong Kong, 22 September 2026) Beijing Sino-Hypro Petrochemical Tech. Co., Ltd. (北京信諾海博石化科技發展有限公司) ("Sino-Hypro"), a chemical gas separation and recovery enterprise under Yip's Chemical Holdings Limited (SEHK: 00408) ("Yip's Chemical" or the "Company", together with its subsidiaries collectively referred to as the "Group"), was invited to attend the 23rd International Chemical Industry Fair (ICIF 2026) held last week at the Shanghai New International Expo Centre. Against the regulatory backdrop of the opening year of the "15th Five-Year Plan" and the implementation of the Ecological Environment Code, Sino-Hypro showcased its self-developed "milligram-level (mg-level) oil and gas recovery technology". Centered on pure physical recovery, the technology ensures mg-level compliance for tail gas emissions without creating additional carbon emissions, becoming a major highlight among domestic and international industry stakeholders at the exhibition.

Self-Developed Customised Processes Break Free from Traditional Incineration Limits, Demonstrating Outstanding Environmental and Economic Synergies

As a National High-Tech Enterprise, Sino-Hypro has focused on the R&D and application of industrial organic gas separation and recovery technologies since its founding in 2008. The company operates an equipment manufacturing plant and R&D center in Qingdao, Shandong, holding over 30 invention patents. Managing volatile organic compound (VOCs) emissions during the production, storage, and transportation of oil and chemical products has long been an industry pain point. Given the wide variety of VOCs, dispersed emission sources, and differing site conditions, there is no one-size-fits-all recovery process. Confronted with increasingly stringent domestic environmental standards, Sino-Hypro did not settle for the shortcut of simple technology introduction. Instead, grounded in fundamental chemical engineering theory and continuous iterations through self-developed engineering experiments, the company delivers customised solutions tailored to specific gas characteristics and site conditions.

Breaking away from traditional simple incineration models, Sino-Hypro adheres to a self-developed "pure physical recovery" route, offering advantages that extend far beyond emission reduction:

1. Safety and Compliance: The process operates entirely at ambient temperatures, eliminating deflagration risks and aligning with the petrochemical industry's strict anti-explosion and open-flame standards.
2. Flexibility and Efficiency: The equipment footprint is compact and free from safety distance constraints, allowing for flexible site selection.
3. Resource Recycling: Centered on adsorption separation, organic matter in the oil gas is efficiently adsorbed and liquefied into reusable resources, achieving "source-to-source recycling and in-situ recovery". While ensuring milligram-level tail gas emissions compliance, it generates substantial economic value for enterprises.

Mr. Zhang Guorui (張國瑞on the right of the picture above), Founder and Chief Engineer of Sino-Hypro, graduated from East China Petroleum Institute (now China University of Petroleum) in 1982. As a Senior Engineer in Petrochemical Processes, he served as Chief Engineer at PetroChina Urumqi Petrochemical Engineering Institute for over two decades. He stated: "We have successfully deployed over 140 sets of equipment that have stably achieved milligram-level tail gas concentration standards. The essence of oil and gas recovery is to efficiently recover organic matter in liquid form, allowing compliant tail gas to be discharged directly into the atmosphere. Our technology generally achieves an organic substance recovery rate of over 99.95%. Taking a 10,000 m³/h crude oil recovery unit at a major domestic port as an example, while recovering 5 tonnes of crude oil per hour, it directly reduces carbon emissions by 15 tonnes per hour compared to traditional incineration methods. Our latest R&D technology reduces non-methane total hydrocarbon concentrations in tail gas below 60 mg/m³ and benzene series compounds below 2 mg/m³, demonstrating outstanding environmental and economic synergies. This provides the petrochemical industry with a Chinese solution that achieves 'zero incineration, zero carbon emission, and waste-gas-to-resource transformation'.

Mr. Hu Xiaopeng (胡小鹏on the left of the picture above), General Manager of Sino-Hypro, pointed out: "With the deepened implementation of policies such as the VOC Environmental Protection Tax, procurement logic among major petrochemical clients is undergoing a profound shift. It is upgrading from merely pursuing 'tail gas emission compliance' to meticulously calculating the 'three accounts': direct financial returns from recovered oil and gas, VOC environmental tax reductions, and reduced carbon compliance pressure through resource recycling."

To date, Sino-Hypro’s service footprint extensively covers domestic petrochemical giants such as PetroChina, Sinopec, and Wanhua Chemical, while successfully entering Shell’s supply chain system. Sino-Hypro guarantees a 10-year adsorbent lifespan directly in its contracts, and all deployed installations operate stably, earning high acclaim from clients.

Mr. Hu emphasised: "When large clients purchase an oil and gas recovery system, they are not buying a simple machine, but a complete system solution capable of operating reliably and continuously for ten years. All economic returns are built on the foundation of long-term, stable, mg-level compliance." This capability for sustained compliance serves as Sino-Hypro’s core moat to maintain high gross margins amid low-price competition in the industry.

Yip’s Chemical Strategic Restructuring Reshapes Business Portfolio and Profit Quality

With a 55-year history since its founding in 1971, Yip’s Chemical has faced global market volatility and intensified domestic industry competition in recent years. The Group has adopted strategic portfolio optimisation as its core transformation strategy, proactively scaling down low-barrier businesses with intense market competition, concentrating resources on core strengths, and reallocating capital into high-tech emerging businesses to enhance overall risk resistance and profit quality. Last month, the Group announced its 2026 interim results, reporting a significant year-on-year increase of 113.5% in profit attributable to owners to HK$141 million, with overall gross margin increasing by 2.1 percentage points year-on-year to 26.9%.

Mr. Ip Kwan, Francis (fourth from the left in the front row of the picture above), Chief Executive Officer of Yip’s Chemical, stated: "Deeply cultivated the chemical industry for over half a century, Yip’s Chemical holds deep passion and operational expertise in the sector. Therefore, our transformation remains steadfastly anchored in the chemical core, while setting two mandatory criteria for project selection: first, it must deliver environmental benefits; second, it must possess high technological content. At the end of 2025, the Group successfully acquired an approximately 60% equity in Sino-Hypro, officially entering the field of 'Chemical Gas Separation and Recovery'. This new business aligns seamlessly with national 'Dual Carbon' strategies and environmental policy directions, marking a pivotal milestone in the Group’s transition toward a high-tech, high-value-added specialty chemical enterprise. Since completing the acquisition, we have supported Sino-Hypro across multiple dimensions, including client resources, supply chain, talent, and management systems. The Group’s management will continue to collaborate closely with the founding shareholders to leverage Sino-Hypro’s strong technical foundation alongside Yip’s Chemical’s operational experience and resource network to deepen synergies. I firmly believe Sino-Hypro will continue to unlock strong commercial potential."

Mr. Ip continued: "Looking ahead, the Group will adopt 'a leading development platform for chemical businesses' as its core strategic positioning. While consolidating its existing core businesses such as coatings and inks, the Group will leverage its financial strengths of low gearing and robust cash flow. Through a dual-driven strategy of 'in-house incubation' and 'active acquisitions', we will nurture emerging businesses and proactively seek high-quality M&A targets. Furthermore, the Group has established a dedicated team to actively capture market opportunities, targeting environmental protection and new energy industrial projects as key strategic priorities to drive high-quality and sustainable development."

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

Founded in 1971 and listed on the 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 gas separation and recovery. 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 gas separation and recovery 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 brands, 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

Media and Investor Enquiries

Yip’s Chemical Holdings Limited
Ms. Wing So  Tel：(852) 2675 2385  Email：wing.so@yipschemical.com

DLK Advisory Limited

Ms. Michelle Shi   Tel: (852) 2854 8711     Email: michelleshi@dlkadvisory.com
Ms. Kathleen Mui  Tel: (852) 2854 8727     Email: kathleenmui@dlkadvisory.com