March 6, 2001

Contact:	Shiu Ka Yue / Zelda Yung
Tel:	2801 6198 / 2801 7761

Global Bio-chem Technology Group Company Limited ("Global Bio-chem" or the "Group" stock code: 809) announced today its plan to seek a listing on The Stock Exchange of Hong Kong Limited through placing and public offer of 320 million shares. The net proceeds will be applied to support the Group's continued market expansion, to strengthen its production and processing capacity, and to widen the range of its corn-based biochemical products.

Out of the total 320 million new shares, 32 million shares will be new issue for public subscription and 288 million shares will be placed for corporate and institutional investors. The offer price of Global Bio-chem shares is HK$1.02 per share, representing pro forma fully diluted PE multiples of 5.9 times, and weighted average PE multiples of 4.5 times, based on the Group's estimated profit for the year ended December 31, 2000.

Out of the total net proceeds of approximately HK$278 million (approximately HK$326 million if the over-allotment option is exercised in full), approximately HK$140 million will be used for the purchase and installation of production equipment and facilities at a new production plant in China; approximately HK$50 million will be applied for research and development of new products and the improvement of the Group's existing production technology, production processes and product quality; approximately HK$6 million will be used for the expansion of the distribution and sales network of the Group; and approximately HK$60 million will be used for early repayment of bank borrowings. The balance of approximately HK$22 million will be used as general working capital of the Group.

In light of Global Bio-chem's dominant market position in China and its strong growth potential, Cargill Inc. ("Cargill"), a leading agricultural and food company, has entered into a placing agreement with the Group, regarding the acquisition of not less than 2.34 per cent of the Group's new issue and placing shares for a consideration of approximately HK$7.73 million. Cargill has been invited to nominate a representative to be appointed as a non-executive director of the board of Global Bio-chem.

Cargill has also entered into an option agreement, pursuant to which Cargill has been granted an option to subscribe for 5,600,000 shares and a further 5,600,000 shares after a 12-month period and a 18-month period, respectively from the commencement date of the trading of Global Bio-chem's shares on the Stock Exchange.

"By partnering with an industry leader like Cargill, we believe that it will further enhance the Group's ability in developing its product lines and markets," said Mr. Liu Xiaoming, Chairman of Global Bio-chem.

Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services. Headquartered in Minneapolis, Minnesota, U.S., Cargill has more than 85,000 employees in 60 countries. The company provides distinctive customer solutions in supply chain management, food applications, and health and nutrition.

Having set up its foothold in China in as early as, 1994 Global Bio-chem is principally engaged in the development, manufacturing and sales of a wide range of corn-based biochemical products and corn refined products. It is currently the largest China-based producer of lysine, a widely used amino acid, with an output capacity of 15,000 tonnes per annum. The Group is also one of the leading manufacturers of corn sweeteners and one of the top three corn refining manufacturers in China.

Headquartered in Hong Kong, Global Bio-chem's main production facilities are based in Changchun, Jilin Province, the corn gold belt in China with an annual yield of 20 million tonnes of corn. The Group can process up to 600,000 tonnes of corn per annum. The capacity is expected to triple to over 1.8 million tonnes by the end of 2003.

The compound annual growth rate ("CAGR") of the Group's turnover and net profit were approximately 0.9 times and 1.5 times over the four years ended December 31, 2000 respectively. The Group was able to maintain a continuous growth in gross profit margin from approximately 14 per cent in 1997 to 34 per cent for the nine months ended September 30, 2000.

The Group's turnover and profit attributable to shareholders were approximately HK$1,047 million and HK$112.8 million for the year ended December 31, 1999 respectively. The Group's turnover and profit attributable to shareholders were approximately HK$882.8 million and HK$175.6 million for the nine months ended September 30, 2000 respectively. The Group's nine months net profit for 2000 had already exceeded the full year figure of the financial year 1999.

The Group's combined profit after taxation and minority interests but before extraordinary items for the year ended December 31, 2000 was estimated to be not less than HK$220 million.

"Our success depends upon our leading market position and strong technological knowhow in corn-based biochemical product manufacturing. Our large-scale production and vertically integrated operations enable us to take advantage of the economies of scale that results in lower production cost and greater price competitiveness of our products. Our comprehensive, cutting-edge production facilities and technique allow us to achieve high production efficiency and to have a broad product range to meet our customers' needs," said Mr. Liu.

Corn refined products manufactured by Global Bio-chem in primary refining process include corn starch, corn gluten, corn oil and corn fibre feed. The Group also uses corn starch as a feedstock in the manufacture of corn based biochemical products, including amino acids, modified starch and corn sweeteners.

Global Bio-chem's products are distributed to almost every part of China through 12 points of sales in major cities of the country. The Group is servicing customers from a myriad of industries including food, soft drink, pharmaceutical, corrugating paper and textiles industries.

"We believe that a further increase in our market share in China and the Asia Pacific region will strengthen Global Bio-chem's position as a leading manufacturer of corn refined and corn-based biochemical products. To support our market penetration, we plan to develop and expand our distribution network by establishing five new points of sales in several major cities of China, namely Chongqing, Dalian, Qingdao, Xian and Zhengzhou, and sales offices in high potential overseas markets including Korea, Taiwan and the Philippines," noted Mr. Liu.

In order to tap into the rapidly growing market demand for healthy and environmentally friendly products, Global Bio-chem will make use of its strong research and development capabilities to further expand its range of corn based biochemical products. The Group's new products under development include glutamic acid, refined lysine, biochemical fertiliser, biochemical feed, methionine, high fructose corn syrup, biodegradable plastic and other biochemical pharmaceutical and environmental friendly products.

Global Bio-chem plans to invest at least HK$20 million per annum starting from 2001 and onwards in the research and development of corn-based biochemical products. The Group also aims at commercialising at least one new type of corn-based biochemical product every two years.

Deloitte & Touche Corporate Finance Ltd is the sponsor of the Group's initial public offer, and GC Capital (Asia) Limited is the bookrunner and lead underwriter of the Group's placing and public offer.

Application forms will be available on Wednesday, March 7, 2001. The public offer will close at noon on Monday, March 12, 2001. Dealings in the shares of Global Bio-chem on the Stock Exchange will commence on Friday, March 16, 2001.

Issued by	:	Global Bio-chem Technology Group Company Limited
Through	:	CorporateLink Limited

New Issue Statistics / Financial Information

Number of new shares for public subscription	32,000,000 shares
Number of placing shares	288,000,000 shares
Total number of new issue and placing shares	320,000,000 shares
Share offer price	HK$1.02 per share
Market capitalisation	HK$1,306 million
Net proceeds
(if over-allotment option is not exercised)	HK$278 million
(if over-allotment is fully exercised)	HK$326 million
Adjusted net tangible asset value per share	HK49.6 cents
Estimated profit after taxation and minority interests but before extraordinary items for the year ended December 31, 2000	Not less than HK$220 million
Estimated earnings per share
(a) pro forma fully diluted	HK17.2 cents
(b) weighted average	HK22.9 cents
Prospective price / earnings multiple
(a) pro forma fully diluted	5.9 times
(b) weighted average	4.5 times
Expected Timetable	2001
Latest time to lodge application forms	12:00 noon Monday, 12 March
Results of applications and basis of allotment of the Offer Shares to be published on or before	Thursday, 15 March
Share certificates and refund cheques in respect of wholly or partially successful applications to be posted on or before	Thursday, 15 March
Dealings in shares to commence on	Friday, 16 March