27 September 2006 - The Board of Directors of Luzhou Bio-chem Technology Limited (“the Company”) wishes to announce that the Company had on 26 September 2006, entered into a Joint Venture Agreement (the “Agreement”) with Sichuan Jin Tai Bio-chem Co., Ltd (“Jin Tai”) pursuant to which a new subsidiary, Luzhou Bio-chem Technology (Sichuan) Co., Ltd (“LSC”) will be incorporated in the People's Republic of China.
Under the Agreement, the proposed registered capital of LSC shall be RMB 70.0 million. The Company shall invest RMB 35.7 million (51%) and Jin Tai shall invest RMB 34.3 million (49%) in the registered capital of LSC. As such, LSC shall become a subsidiary of the Company.
The Board of Directors of LSC shall comprise 5 directors. The Company and Jin Tai shall nominate and appoint three directors and two directors to the Board of Directors of LSC respectively.
The principal activity of LSC shall be that of corn refining and it shall be principally engaged in the production and distribution of various sweeteners.
The investment in LSC shall be funded internally and is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company for the financial year ending 31 December 2006.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the investment, save through their shareholdings in the Company.
The initial public offering of the Company was sponsored by China Construction Bank Corporation, Singapore Branch (the “Manager”). The Manager assumes no responsibility for the contents of this announcement.