Ming Fai International (HKG:3828) says that it expects net profit for the year ended 31 December 2011 to decrease significantly as compared to the net profit for 2010. The change is mainly attributable to the following reasons:

(i) the profit margin of the group has been decreasing which was mainly due to the increasing cost pressure in the PRC;

(ii) the new businesses of the group, including the retail brand - "everybody Labo" and the laundry service business, continued to record losses while they were at investment stage during the year 2011; and

(iii) the operating results of retail business in the PRC "7 Magic" were lower than management expectations.

The annual results announcement of the company for the year ended 31 December 2011 is expected to be released before the end of March 2012.