Art Textile Technology (HKG:0565) has warned that its interim results for the six months ended 31 December 2011 may incur a loss. The six-month results are expected to be published before the end of February 2012.

The interim results of the group for the six months ended 31 December 2011 experienced a decline compared with that for the corresponding period in year 2010 due to a number of adverse factors, including the rise in raw material costs, the increase in allowance of inventory and general rise of expenses arising from the inflation. Consequently, the reduction of gross sales margin was happened.

The board of directors considers that the financial position of the group remains solid and the group is capable of financing its operations by its own internal resources and available banking facilities.