Yugang International (HKG:0613) has warned that its annual results for the year ended 31 December 2011 are expected to record a very substantial loss as compared to a profit for the last corresponding year.

The majority of the anticipated loss is attributable to a very substantial impairment of a long term available-for-sale investment together with a significant unrealized loss on the revaluation of the group's listed securities investment due to the significant downturn of the local equity market in the second half of 2011 and the prevailing financial market conditions as at the end of the financial year, the company says.