Global Bio-chem Technology Group Co. Ltd. provided earnings guidance for the six months ended June 30, 2012. The board of directors of the company inform the shareholders of the company and potential investors that it is expected that the Group will record a loss in the unaudited interim results of the Group for the six months ended 30 June 2012 as compared to a profit for the corresponding period in 2011.

The directors believe that such change was primarily attributable to the net loss recorded by the Group during the month of June 2012 due to the loss incurred from upstream business of the Group pressured by increasing raw material costs and the slip of selling prices of lysine products; the impairment loss to be made by the Group for polyol products due to the decrease of selling prices; the provision to be made by the Group for bad and doubtful debt in relation to the Group's account receivables which have been long due; and the provision to be made by a non-wholly owned subsidiary of the Company during the Period in relation to its retail beef business.