Global Bio chem Technology : INSIDE INFORMATION SUSPENSION OF PRODUCTION AND SALES OPERATION OF CERTAIN SUBSIDIARIES OF THE GROUP

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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 AND SALES OPERATION OF

CERTAIN SUBSIDIARIES OF THE GROUP

Due to the impact of the recent SRD outbreak:

1. the production operation of Dacheng Bio-Tech and Dihao Foodstuff in Xinglongshan of Changchun in the PRC has been suspended; and
2. the sales operation of Changchun Dahe has also been suspended and the suspension of the Dahe Production Facilities will be continued and extended.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

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).

Suspension of operation of Dacheng Bio-Tech and Dihao Foodstuff

The board (the "Board") of directors (the "Directors") of the Company wishes to announce that due to the impact of the recent outbreak of the Severe Respiratory Disease associated with a Novel Infectious Agent ("SRD") across the People's Republic of China (the "PRC"), the production operation of 長 春 大 成 生 物 科 技 開 發 有 限 公 司 (Changchun Dacheng Bio-Tech Development Co., Ltd.*) ("Dacheng Bio-Tech"), an indirect wholly-owned subsidiary of the Company, in Xinglongshan of Changchun in the PRC has been suspended.

- 1 -

Despite the temporary suspension of the production operation of Dacheng Bio-Tech, the sales operation of Dacheng Bio-Tech remains unaffected up to the date of this announcement. According to the unaudited financial information of the Group, the revenue and net loss of Dacheng Bio-Tech represented approximately 12.0% and 20.2% of the Group's total revenue and net loss, respectively, for the year ended 31 December 2019, respectively.

Further, the Board would also like to draw the attention of investors and the shareholders ("Shareholders") of the Company that the production of 長春帝豪食品發展有限公司 (Changchun Dihao Foodstuff Development Co., Ltd.*) ("Dihao Foodstuff"), an indirect wholly-owned subsidiary of Global Sweeteners Holdings Limited ("GSH", together with its subsidiaries, the "GSH Group"), has also been suspended. Such suspension was mainly due to the lack of supply of principal materials (corn starch either in powder or slurry form), given that (i) the production operation of Dacheng Bio-Tech has been suspended and its existing inventory level is not sufficient to support the production operation of Dihao Foodstuff; and (ii) the management of the GSH Group considers that it is not cost efficient for Dihao Foodstuff to purchase corn starch in slurry or powder form from independent third parties. Dihao Foodstuff is principally engaged in the manufacture and sale of corn sweeteners. Please refer to the announcement of GSH dated 10 February 2020 for further information.

Suspension of operation OF Changchun Dahe

Reference is made to the Company's announcement dated 16 December 2019 (the "Announcement") in relation to the temporary suspension of the production facilities (the "Dahe 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"), an indirect wholly-owned subsidiary of the Company.

The Board wishes to further announce that due to the impact of the recent SRD outbreak, in addition to the reasons stated in the Announcement, the suspension of the Dahe Production Facilities will be continued and extended. In addition, as most of the inventories of Changchun Dahe have been sold before the Chinese New Year, the sales operation of Changchun Dahe has also been suspended.

According to the unaudited financial information of the Group, the revenue and net loss of Changchun Dahe represented approximately 7.8% and 36.3% of the Group's total revenue and net loss, respectively, for the year ended 31 December 2019.

The SRD outbreak in the PRC has led to extended shutdown of factories and markets. Most of the commercial activities have slowed down, including the procurement of corn kernels. Widespread skepticism on overall demand has dragged down the prices of agricultural products. Corn suppliers are reluctant to sell their inventory as a result. Coupled with the stagnant market due to both seasonality low after the Chinese New Year and the impact of the SRD outbreak, the management of the Group believes the temporary suspension will be in the interest of the Group and the Shareholders.

- 2 -

The Board will continue to monitor closely the development of the SRD outbreak, market conditions as well as the financial conditions of the Group and will ensure the production and sales operation of the Group's subsidiaries to resume as soon as possible to the extent practicable. Based on the information currently available, the Board considers the suspension of operation and production as stated in this announcement is temporary and such suspension is expected to reduce operating cash outflow. As such, the Board does not expect there will be any material adverse effect on the financial position of the Group in the short run.

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, 10 February 2020

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

- 3 -