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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)
INSIDE INFORMATION
SUSPENSION OF PRODUCTION OF HARBIN DACHENG AND JINZHOU
DACHENG
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 (the "Listing Rules") on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The board (the "Board") of directors (the "Directors") of the Company wishes to announce that considering the poor market sentiment as a result of the outbreak of the African Swine Fever across Asia since 2018 which continued to weigh on the performance of the corn refined industry; and the tightened working capital of the Group, the management of the Group has decided to suspend the production of 哈爾濱大成生物科技有限公司 (Harbin Dacheng Bio-Technology Co., Ltd.*) ("Harbin Dacheng"), an indirect wholly-owned subsidiary of the Company. Harbin Dacheng is principally engaged in the manufacture and sale of corn starch, gluten meal, corn oil and other corn refined products.
As at 30 June 2019, according to the unaudited financial information of the Group, the turnover and net loss of Harbin Dacheng represented 13.0% and 8.8% of the Group's total turnover and net loss for the six months ended 30 June 2019, respectively.
The Board considers that the suspension is in the best interest of the Company and the shareholders of the Company ("Shareholders") as a whole as it could minimise operating cash outflow and secure resources for other core business activities of the Group. It is expected that the suspension would not have any material adverse effect on the financial position of the Group for the year ending 31 December 2019.
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Further, the Board would also like to draw the attention of investors and Shareholders that the production of 錦州大成食品發展有限公司 (Jinzhou Dacheng Food Development Co., Ltd.*) ("Jinzhou Dacheng"), an indirect wholly-owned subsidiary of Global Sweeteners Holdings Limited ("GSH", together with its subsidiaries, the "GSH Group"), has been suspended until market conditions improve. The suspension of Jinzhou Dacheng was based on the consideration of the poor sentiment of the sweeteners market in northeast China and the tightened working capital of the GSH Group. Jinzhou Dacheng is principally engaged in the manufacture and sale of corn sweeteners. Please refer to the announcement of GSH dated 24 September 2019 for further information.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
By order of the Board
Global Bio-chem Technology Group Company Limited
Yuan Weisen
Chairman
Hong Kong, 24 September 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.
- For identification purpose only
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