5. How many employees does the Group have?

The Group has around 1,400 employees. 60% of the employees have university degrees and most of the management are seasoned professionals in the industry.

Product/Business

6. What are the major products of the Group?

The Group's products can be divided into 2 main categories: downstream corn based biochemical products and upstream corn refined products.

Downstream corn based biochemical products use corn starch, the main upstream product, as raw material to produce 3 main categories of products: amino acids, corn sweeteners and modified starch, which can be used in a myriad of industries like food and beverage, animal feed, pharmaceutical, chemical, cosmetic, paper, and textile industries.

Corn is the raw material for upstream products, which include corn starch that can be used in downstream production, as well as crude corn oil, corn gluten (protein), and fiber feed. The latter two are sold to feed manufacturers.

7. What is the difference between cane sugar and corn sweeteners? Is corn sweetener an artificial flavoring?

Cane sugar and corn sweeteners use different natural raw materials, sugar cane and corn respectively, as their names suggest. Corn sweetener is not an artificial flavoring; it contains much less calories than cane sugar and is healthier for oral hygiene. Using corn sweeteners, which are in liquid form as opposed to cane sugar in solid form, not only facilitates the manufacturing process of industrial users, but also lowers their production cost.

8. What is the difference between corn sweeteners and High Fructose Corn Syrup (HFCS)?

HFCS is actually a type of corn sweetener with a higher peak in sweetness than other types of corn sweeteners. While other corn sweeteners, like glucose and maltose, are mostly used in the food industry, HFCS is widely used in the food and beverage industry.

9. What are lysine and amino acids?

Amino acids are the basic building blocks of protein in animals, including human beings. Animals require over 20 types of amino acids and lysine is one of them. There are 3 grades of lysine-- feed, food and medical grades. The Group currently produces feed grade lysine, which enhances the health and the growth of animals while producing leaner meat.

10. What products are produced with modified starch?

Modified starch can be used in a variety of industries like food, paper, textile and chemical industries. The Group currently sells modified starch to the food industry and is constructing a plant to cater to the paper industry.

11. What is sorbitol and what are its uses?

Sorbitol is a type of organic chemical. It is derived from starch or glucose and is widely used throughout the food, pharmaceutical, cosmetics and chemical industries for the manufacture of toothpaste and vitamin C as well as anti-crystallizing agent and non-cariogenic sweetening agent for various products.

12. What is polyol and what are its uses?

Polyol products include ethylene, glycerin and butanediols and can be used in textile, plastic, medical, chemical and cosmetic industries. Popular products include polyester fiber, polymer resin and anti-freeze. At present, all polyol products are produced by petroleum. The research and development of polyol bio-technology by GBT will use corn starch as raw material. This latest world technology will solve the problems of petroleum scarcity and environmental protection.

13. Why did the Group build its production base in Northern China?

The main production base, with an area of approximately 600,000 square meters, is in Changchun because Jilin province is in the Golden Corn Belt of the PRC, with the most abundant supply of corn. Corn sweeteners plants were strategically built in Shanghai in close proximity to customers, food and beverage manufacturers located in Shanghai and surrounding areas. The latest addition is a 600,000-metric-tonne capacity corn refinery in Jinzhou, Liaoning province, which will be operational by early 2004. Being in the Golden Corn Belt, Jinzhou is a major port for shipment and transshipment to southern China and overseas so it lowers transportation costs.

14. What are the major barriers of entry for competitors?

For corn based biochemical products, the major hurdle is advanced technological know-how. Only a handful of companies in the world can produce specific kinds of corn based biochemical products, like lysine, in mass commercial production capacity.

To stay competitive, it is envisaged that vertical integration in the industry is essential. The time and capital expenditure needed to establish a production network is substantial and cannot be achieved in a short time frame.

15. Where is the Group's research and development facility? What are the profiles of the in-house scientists?

The Group's research laboratory is located in Changchun and has around 80 experienced biochemical and mechanical engineers on the team. The team also works in collaboration with leading local and overseas universities and academies on research projects.

Investor Relations

16. What is the shareholder structure of the Company?

The Group's top holding company has a diversified shareholding structure with institutional and private investors. As of the end of December, 2003, the public holds about 54.3% interest and the rest (about 45.7%) is held by the Company's management.

17. What is the Company's dividend history?

After listing in March, 2001, with a 5 for 1 bonus issue, dividends of HK2.92 cents per share (adjusted) were paid for year 2001. For year 2002, dividends of HK3.5 cents per share were paid. Payout is approximately 17% in 2002 and approximately 14% in 2001. The payment of an interim dividend for the year ending 31 December 2003 was HK2.0 cents per share.

18. How does the Company maintain its relationship with shareholders?

The Company increases transparency by disclosing its latest business development plans and maintains constant contacts with the investment community worldwide. There is also active participation in investment conferences and road shows to present to and communicate with investors. The Group has an Investor Relations Team led by an executive director to facilitate two-way communication. Furthermore, investors are welcome to visit production bases any time and many plant visits have been arranged since listing.

Future Prospects

19. What are the future expansion plans of the Company?