Global Bio-chem Technology Group Company Limited provided earnings guidance for the year ended December 31, 2012. The board of directors informed the shareholders of the Company and potential investors that the Group may record a net loss for the year ended December 31, 2012 (the Year) as compared to a profit for the corresponding period in 2011. The Board considers that, apart from the increase in the cost of corn kernels causing margin squeeze pressure, and decrease of the average selling prices of the Group's products in 2012, the financial results of the Group for the Year had been further adversely affected by possible provision for closing inventories and account receivable of the Group, and the provision to be made by a non-wholly owned subsidiary of the Company in relation to its retail beef business.