Chigo Holding Limited (HKG:0449) has warned that it expects a loss for the year ended 31 December 2011, as compared with a profit for the same period in 2010, mainly due to (i) a significant decrease in the amount of subsidies received in 2011 (as compared with that for the same period in 2010) under the PRC Government's Energy-Saving Scheme, which was partially off-set by an increase in the proportion of group's sales of air-conditioning products that did not fall into the Energy-Saving Scheme and an increase in the average sales prices of air-conditioning products during the period; and (ii) a loss resulting from fair value changes of the non-listed warrants issued by the company through profit or loss.