21 Holdings Limited (HKG:1003) expects to record a substantial loss for the year ended 31 December 2011. The loss is principally due to the possible impairment loss on goodwill and intangible assets mainly relating to acquisition of the real estate agency business in the PRC as a result of the downward revision of revenue forecast. The company expects to release it annual results on or before 31 March 2012.

The company said that the real estate market in the PRC showed sign of further slowdown under the government's continued restrictive policies and further credit tightening in the second half of 2011. The continuous declining real estate sales volume in the PRC had dampened the business strategy of the developers who had become less optimistic on sales forecast and more cautious with land purchase as well as spending on project preparation. The company believes that this poor market sentiment has and will continue to adversely affect the performance to its real estate agency business in the PRC and thus, the growth rate of revenue in this business sector would have to be revised downward in the following years as compared to those previously expected.