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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 MEMORANDUM OF UNDERSTANDING IN RELATION TO THE PROPOSED INDIRECT ACQUISITION OF INTERESTS IN A JOINT VENTURE

This announcement is made by Global Bio-chem Technology Group Company Limited (the "Company") pursuant to the Inside Information Provisions (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) of Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule

13.09 of the Listing Rules.

THE PROPOSED ACQUISITION

The board of directors of the Company (the "Board") wishes to advise that on 26 May 2016 (after trading hours), the Company and an individual (the "Possible Vendor") entered into a memorandum of understanding (the "MOU") in relation to the proposed acquisition (the "Proposed Acquisition") by a subsidiary of the Company from the Possible Vendor of the entire issued shares in a company incorporated in Hong Kong (the "HK Company") which is owned by the Possible Vendor. To the best of the knowledge, information and belief of the members of the Board having made all reasonable enquiries, the Possible Vendor is a third party independent of the Company and its connected persons (as defined under the Listing Rules).

Subject to the completion of certain reorganisation (the "Reorganisation"), it is expected that the HK Company will hold about 49% of the equity interest of Cornell Chemical Industry Co., Ltd.(康 乃爾化學工業股份有限公司)(the "Joint Venture"), a sino-foreign equity joint venture established in the People's Republic of China (the "PRC"). It is the preliminary intention of the parties that the total consideration for the Proposed Acquisition shall be about RMB277 million, payable in cash or by the issuance of shares of the Company.

Under the MOU, except for certain legally binding terms in relation to exclusivity, due diligence, costs and expenses, confidentiality and governing law, all other terms in the MOU are not legally binding on the parties thereto.

REASONS FOR THE PROPOSED ACQUISITION

The Company has been looking for opportunities to diversify its income source so as to improve the financial conditions of the Group in the long run. Based on information available to the Directors, the Joint Venture is principally engaged in the manufacture of aniline, nitrobenzene, nitric acid and synthetic ammonia, and is one of the major suppliers of aniline in the PRC. It also possesses certain advanced technology of value, and is also contemplating for the listing of its shares on the National Equities Exchange and Quotations System (also known as the "New Third Board") in the PRC. One of the Group's by-products, liquid ammonia, is also the upstream product for the production of the Joint Venture's chemical products. It is expected that the Proposed Acquisition will create synergistic effect between the Joint Venture and the Group, and represents a favourable investment opportunity for the Group to diversify its income source.

GENERAL

The Proposed Acquisition, if materialised, may constitute a notifiable transaction for the Company under chapter 14 of the Listing Rules. No definitive or legally binding agreements have been reached by the Company or its subsidiaries with the Possible Vendor as at the date of this announcement in connection with the Proposed Acquisition. The Board wishes to emphasise that the Proposed Acquisition may or may not proceed. Further announcement(s) will be issued by the Company for any update of the status of the Proposed Acquisition when appropriate.

The Board wishes to emphasise that as the Proposed Acquisition may or may not materialise, investors and shareholders of the Company are urged to exercise caution when dealing in the shares and/or securities of the Company.

By order of the Board

Global Bio-chem Technology Group Company Limited Lee Chi Yung

Company secretary

Hong Kong, 26 May 2016

As at the date of this announcement, the Board comprises four executive directors, namely Ms. Wang Qiu, Mr. Wang Jian, Mr. Li Shuguang and Ms. Liu Fang; two non-executive directors, namely Mr. Qiu Zhuang and Mr. Xing Lizhu; and three independent non-executive directors, namely Mr. Ng Kwok Pong, Mr. Yeung Kit Lam and Ms. Chiu Lai Ling Shirley.

Global Bio-Chem Technology Group Co. Ltd. published this content on 26 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 May 2016 10:40:04 UTC.

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