Global Bio chem Technology : VOLUNTARY ANNOUNCEMENT SUSPENSION OF PRODUCTION OF CHANGCHUN DAHE

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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)

VOLUNTARY ANNOUNCEMENT

SUSPENSION OF PRODUCTION OF CHANGCHUN DAHE

The board (the "Board") of directors (the "Directors") of the Global Bio-chem Technology Group Company Limited (the "Company", together with its subsidiaries, the "Group") wishes to announce that as a result of (i) the impact of African Swine Flu; (ii) the trade dispute between the People's Republic of China and the United States; and (iii) the need for regular maintenance of the production facilities (the "Production Facilities") of 長春大合生物技術開發有限公司 (Changchun Dahe Bio Technology Development Co., Ltd.*) ("Changchun Dahe"), the Group took the opportunity to accelerate the schedule for regular maintenance by temporarily suspending the production operation at the Production Facilities since August 2019. Changchun Dahe is an indirect wholly- owned subsidiary of the Company principally engaged in the manufacture and sale of corn based biochemical products such as lysine and protein lysine.

While the machinery overhaul at the Production Facilities has been completed at the end of November 2019, having taken into account the latest market conditions and the financial conditions of the Group, the management of the Group has decided to continue to suspend the production operation at the Production Facilities until around mid-February 2020 after the Chinese New Year, tentatively. Taking into account the inventory level of Changchun Dahe and the lower seasonal demand during the period near and after the Chinese New Year, the Group expects that Changchun Dahe will continue its sales operation prior to the resumption of production operation at the Production Facilities. The management of the Group will closely observe the market conditions and conduct feasibility analysis on the resumption of production operation at the Production Facilities. The Company will make further announcement as and when necessary should there be any change to the plan regarding the resumption of operation at the Production Facilities or the sales operation status of Changchun Dahe.

Despite of the temporary suspension of the production operation at the Production Facilities since August 2019, Changchun Dahe has maintained its sales operation up to the date of this announcement. According to the unaudited financial information of the Group, the revenue and net loss of Changchun Dahe represented 25.3% and 37.4% of the Group's total revenue and net loss for the nine months ended 30 September 2019, respectively.

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The Board considers that the temporary suspension is in the interest of the Company and the shareholders of the Company ("Shareholders") as a whole as it has been able to reduce its operational loss as a result of the reduced operating cash outflow following the suspension. It is expected that the suspension would not have significant adverse effect on the financial position of the Group for the year ending 31 December 2019.

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, 16 December 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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