A film buff at an early age, Yip went to the cinema whenever he could and often wrote reviews on the backs of ticket stubs. He entered the movie business in the 1980s, starting out as a "gofer" and working his way up to assistant director.
His directorial debut was 01.00 AM, a three-segment horror compendium. He directed two of three parts, one with Veronica Yip as a nurse who sees dead pop stars, and Anita Yuen interviewing a demon.
His next effort, Daze Reaper, was a Category III exploitation film, based on a true-crime story about a prison guard who turns to crime. Next was Mongkok Story, an exploitive story in the vein of Young and Dangerous, and another horror trilogy, Midnight Zone, about urban myths. He also turned to comedy with Teaching Sucks, about two Hong Kong teachers played by Anthony Wong and Jan Lam.

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