Dacheng Biochemical Technology: Changchun Dahe suspends production until around mid-February next year

Dacheng Biochemical Technology (00809) announced that the group has suspended production since August this year, mainly due to the impact of African swine fever; trade disputes; and the company’s indirect wholly-owned subsidiary Changchun Dahe’s production facilities require regular maintenance.

Although the overhaul of the production facilities was completed at the end of November this year, after taking into account the latest market conditions and financial conditions, the Group’s management decided to continue to suspend the production operations of the production facilities until after the Lunar New Year, and tentatively plan until around mid-February next year.

Taking into account the inventory level of Changchun Dahe and the low demand in the industry during the off-season around the Lunar New Year, it is expected that Changchun Dahe will be able to continue its sales operations before resuming production and operation of production facilities.

Changchun Dahe is an indirect wholly-owned subsidiary of the company and is mainly engaged in the production and sales of corn biochemical products such as lysine and protein lysine.