HL Technololgy (HKG:1087) says that it a decline in net profit for the year ended 31 December 2011 as compared to the year ended 31 December 2010 due to reasons including (i) the significant increase in operating expenses, including selling and distribution expenses and research and development expenses, as the group continues to invest in new products and markets that will only gradually begin to have revenue contribution from 2012 onwards; and (ii) the slight decrease in average selling price of some of the group's products in the second half of 2011 due to the slowdown in the global computers and consumer electronic products industries.

Despite the expected decline in net profit for the year ended 31 December 2011, the board of directors considers that the overall financial performance of the group remains healthy for the year ended 31 December 2011 in such challenging operating environment.