Dacheng Biochemical Technology Non -wholly -owned subsidiary Dacheng Sugar Industry intends to distribute 306 million shares

On July 25, 2022, Hong Kong stock listed company Dacheng Biochemical Technology (00809.HK) announced that on July 24, 2022, Dacheng Sugar Industry (company's non -complete subsidiaries) ((03889.HK)) and the subscriber Establishing the Dacheng Sugar Industry Subscription Agreement, according to this, the subscriber has the conditions to agree to the subscription and Dacheng sugar industry. Hong Kong dollar.

According to the directors, the subscriber is wholly -owned by Kong Zhanpeng. Kong Zhanpeng has served as the company's executive directors, chief executives and chief economists of the company until May 23, 2014, October 1, 2018, and December 20, 2019. He also served as the executive director of Dacheng sugar industry until December 31, 2018.

After the subscription of Dacheng Sugar Industry, the company's rights and interests of the company's issued equity will be diluted from approximately 64.04%to about 53.37%.

Dacheng sugar industry subscription will enable Dacheng Sugar Group to raise funds as general operating funds and soothe some fiscal pressure from bank loans. Therefore, if the subscription of Dacheng Sugar Industry is completed, it will be beneficial to Dacheng Sugar Industry and indirectly will be beneficial to the overall shareholders of Dacheng Sugar Industry (including the company). The company will continue to hold its long -term investment in investment in Dacheng Sugar.

Director of Dacheng Biochemical Science and Technology believes that the clauses of Dacheng Sugar Industry (after the consultation with Dacheng Sugar and Fang Ping Ping) are fair and reasonable and formulated in accordance with normal business terms. Once Dacheng Sugar's subscription matters and the sale that are regarded by this will be implemented, which will comply with the overall interests of the company, Dacheng Sugar and their respective shareholders.

- END -