GLOBAL BIO-CHEM (00809) decided to restart the boiler refurbishment project at the Dahahe plant in Changchun, and plans to sign an EPC contract with a suitable EPC contractor.

GLOBAL BIO-CHEM (00809) announced that the company has decided to restart the boiler refurbishment project at Changchun Dahe, and intends to sign an EPC contract with a suitable EPC contractor to refurbish the boiler facilities at Changchun Dahe. As the controlling shareholder of the company is ultimately controlled by the State-owned Assets Supervision and Administration Commission of Jilin Province, the group must select a suitable EPC contractor for the boiler refurbishment project through open tender, and the company must enter into an EPC contract with the winning bidder. On May 23, 2025, Changchun Dahe issued a tender notice inviting bidders for the EPC contract. According to the EPC contract, the winning bidder will be responsible for the project engineering design, procurement, and construction of the boiler refurbishment project. The tender will start on May 26, 2025, with a duration of 23 days, and will end on June 17, 2025. As disclosed in the company's annual report for the year ended December 31, 2024, Changchun Dahe's production facilities operated normally throughout 2024 and contributed significantly to the group's revenue. Despite the significant financial contribution of Changchun Dahe to the group, the plant has been using medium/low-pressure boilers and associated generator sets since its establishment over 20 years ago. Considering the widespread use of more cost-effective high-pressure and ultra-high-pressure boilers in China, and in line with the overall sustainable development of the group, it is necessary for Changchun Dahe to refurbish its boiler facilities and upgrade the boiler units to reduce costs and enhance market competitiveness. Since the group is mainly engaged in the production and sale of corn refining products and biochemical products derived from corn in China, the group does not have the qualifications and capabilities to undertake similar refurbishment projects of the same scale. By entering into an EPC contract, the group can outsource the boiler refurbishment project to a suitable EPC contractor, reducing unnecessary administrative costs and selecting quality suppliers through fair competition.