Sino-Tech International (HKG:0724) has warned that it expects an operating loss for the year ended 31 December 2011.

On the operating level, segment loss for the electronic products was due to, among others, continued margin squeeze from the increase in labour cost as a result of labour shortage and in compliance with the minimum wages requirement in the PRC as well as the increase in material cost and production cost as a result of the continuous appreciation in Renminbi, the company said.

In terms of profit contribution to segment results, logistics services were expected to incur a loss mainly due to the continued interruption of shipments for the Angola project. The property investment segment was expected to report a profit due to gains in the fair value of the investment property, the company said.