Topsearch International (Holdings) Limited (HKG:2323) expected tp record a further loss in the second half of the year 2011, which would result in a net loss after tax for the year ended 31 December 2010 also record a loss.

The expected loss was mainly attributable to the reduced sales revenue, the reduction of sales margin and also the general rise of expenses arising from both the inflation and progressive appreciation of RMB during the year and the impairment provision for the Group's building properties, as well as production machinery and equipment.

The Company considers that the financial position of the Group remains sound and it is capable of financing its operations by its own internal resources and available banking facilities.