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ST Ganhua said that the reason for the company's performance to turn profit is that the company actively carried out the pulp and paper trade in the first quarter and produced certain benefits. Secondly, the subsidiary Guangdong Biotechnology Development Center Co., Ltd. strengthened management, reduced production and operation costs, and gradually improved the benefits. In addition, the company received the second phase of support fund of RMB 60 million from the State-owned Assets Supervision and Administration Commission of Jiangmen Municipal People's Government in March 2012.
ST Ganhua explained that this performance forecast is based on preliminary calculations of the company's financial department based on current operating conditions, etc. The specific financial data will be disclosed in detail in the company's 2012 first quarter report. 
ST Ganhua released its 2012 Q1 results forecast. The company estimates that Q1 earnings will turn into a profit this year. The net profit attributable to shareholders of listed companies is 58 million yuan – 62 million yuan, and the basic earnings per share is 0.18 yuan to 0.19 yuan.