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GLOBAL BIO-CHEM TECHNOLOGY GROUP COMPANY LIMITED
大 成 生 化 科 技 集 團 有 限 公 司 *
(incorporated in the Cayman Islands with limited liability)
(Stock Code: 00809)
PROFIT WARNING
This announcement is made by Global Bio-chem Technology Group Company Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).
The board (the "Board") of directors (the "Directors") of the Company wishes to inform the shareholders of the Company and potential investors that based on the preliminary review of the Group's unaudited consolidated management accounts for the six months ended 30 June 2019, the gross profit recorded by the Group for the six months ended 30 June 2019 (the "Period") decreased significantly as compared with that for the corresponding period in 2018. Such decrease was mainly attributable to:
- the increase in price of corn starch, which is a major raw material of the Group's downstream production;
- the decline in sales volume as well as the selling price of the Group's amino acids due to the impact of the African Swine Fever; and
- accordingly, the Group had recorded a gross loss for the amino acids segment during the Period as compared with the gross profit recorded for this segment for the corresponding period in 2018.
As a result of the above, it is expected that the Group's gross profit for the Period would drop by at least 70% while the net loss for the Period would increase by at least 9% as compared to the corresponding period in 2018.
* For identification purpose only
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The information contained in this announcement is only based on the preliminary assessment by the management of the Group with reference to the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019 which have not been reviewed or audited by the Company's auditor. Shareholders of the Company and the potential investors are advised to read carefully the interim results announcement of the Company for the six months ended 30 June 2019 which is expected to be published by the end of August 2019.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
For and on behalf of the Board
Global Bio-chem Technology Group Company Limited
Yuan Weisen
Chairman
Hong Kong, 8 August 2019
As at the date of this announcement, the Board comprises three executive Directors, namely, Mr. Yuan Weisen, Mr. Zhang Zihua and Mr. Liu Shuhang; one non-executive Director, namely, Ms. Liang Wanpeng; and three independent non-executive Directors, namely, Mr. Ng Kwok Pong, Mr. Yeung Kit Lam and Mr. Zhao Jin.
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