Decheng Technology AG: roduction of food packaging material for Chinese food giant commences

CORPORATE NEWS June 7, 2018

Decheng Technology AG: Production of food packaging
material for Chinese food giant commences

- Decheng's water-based food packaging material has been approved by Dali Foods Group and production has started

- CEO ZHU: "New product is in line with our long-term strategy"

Cologne, June 7, 2018. Decheng Technology AG (ISIN: DE000A1YDDM9; German Securities Identification Number (WKN): A1YDDM; ticker symbol: 333), a Chinese manufacturer of polyurethane resin and additives, announces, that Decheng Technology AG's water-based food packaging material has successfully completed Dali Foods Group's inspection process and that production has commenced.

Quanzhou City-based Dali Foods Group (listed on the Hong Kong Stock Exchange, code 3799), manufactures and distributes high-profile brands such as Daliyuan, Copico, Haochidian, Heqizheng, and Hi-Tiger, which are among the most popular food brands in China. In FY 2017, Dali Foods Group recorded sales of RMB 19.80bn.

ZHU Xiaofang, Decheng Technology AG's CEO, commented: "Dali Foods Group's approval of our new food packaging material is proof of our R&D capabilities and has enabled us to enter into a new market, which we expect to grow in the future due to the Chinese government emphasizing the use of water-based polyurethanes for food packaging. Thanks to our strong R&D and the high entry-barriers we are in a good position to exploit this potential. This is also in line with our long-term strategy to develop and manufacture increasingly demanding and innovative products for growth markets in order to become a more high-tech company."

About Decheng Technology AG
Decheng Technology AG is occupied with the research, development and the production of polyurethane resin and additives that enhance and improve the product features of textiles, leather and electronic components. The production site is located in Quangang, Quanzhou City, Fujian Province, People's Republic of China. In fiscal year 2017, the Company achieved sales of EUR 82.1 million, an operating result of EUR 26.0 million and employed 115 persons. The shares of Decheng Technology AG are listed in the General Standard Segment of the Frankfurt Stock Exchange.