Contact: Shiu Ka Yue / Lorna Wong / Alman Loong/ Vivian Cheung Date: 13 August 2008
Tel: 28016239 / 2801 7761 / 2524 4729/ 2167 8178 Pages: 2
GLOBAL SWEETENERS INDEPENDENT SHAREHOLDERS APPROVED
ACQUISITION OF AN UPSTREAM CORN REFINERY
TO FURTHER ENHANCE PRODUCTION EFFICIENCY
Independent shareholders of Global Sweeteners Holdings Limited (“Global Sweeteners” or the
“Company”, stock code: 03889) today approved the resolution regarding the sale and purchase agreement entered into with its parent company, Global Bio-chem Technology Group Company
Limited (“Global Bio-chem”) at the Extraordinary General Meeting.
The independent shareholders’ approval of the proposed transactions enables Global
Sweeteners to acquire the entire interest in Jinzhou Yuancheng Bio-chem Technology Co, Ltd (“Jinzhou Yuancheng”). The acquisition will enable Global Sweeteners to better control the supply of corn starch for its production.
Jinzhou Yuancheng is engaged in the manufacture and sale of corn starch and the corn refined products. Production capacity reaches approximately 420,000 metric tonnes per annum (“mtpa”)
of corn starch and 180,000 mtpa of Co-products. Based on the audited accounts of Jinzhou Yuancheng for the year ended 31 December 2007, the net asset value and the net profit after tax attributable to the shareholders of Jinzhou Yuancheng amounted to approximately RMB367 million and RMB58 million respectively.
“We consider that the acquisition of Jinzhou Yuancheng instead of construction of a new corn refinery will have significant saving on time. We believe further vertical integration along the chain of production through this acquisition can further enhance our production efficiency and cost-effectiveness,” said Mr. Kong Zhanpeng, Chairman of Global Sweeteners.
Global Sweeteners is currently constructing a new sweeteners production facility with an annual production capacity of 200,000 metric tonnes in Jinzhou. The new sweeteners production facility will commence commercial production in the second half of 2008. Upon completion, Jinzhou Yuancheng will directly supply corn starch to the new sweeteners plant through vertical integration and thus enhancing overall production efficiency.
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About Global Sweeteners
Global Sweeteners is listed on the Main Board of The Stock Exchange of Hong Kong Limited in September 2007 and principally engaged in the production and sale of various corn sweeteners including glucose & maltose syrup, HFCS (high fructose corn syrup), crystallised glucose, maltodextrin and sorbitol for food and beverage, chemical, confectionery, dairy, cosmetics and pharmaceutical products manufacturers. Global Sweeteners is one of the largest corn sweeteners producers in the PRC with an annual production capacity of 1,020,000 metric tonnes. Global Sweeteners is a non-wholly owned subsidiary of Global Bio-chem (stock code: 00809), the issue shares of which are listed on the Main Board of the Stock Exchange of Hong Kong Limited.
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Issued by: Global Sweeteners Holdings Limited
Through: CorporateLink Limited
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