Sino-Life Group (HKG:8296) has said that it will record a loss for the year ended 31 December 2011, as compared to a profit for the year ended 31 December 2010.

The board of directors considers that the expected loss is primarily attributable to (i) decrease in value of financial assets designated as at fair value through profit or loss; (ii) increase in expenses for the expansion of the group's business in China; and (iii) promotion expenses incurred for the commencement of business operation in Hong Kong.

The board wishes to point out that the decrease in value of financial assets is of non-cash in nature and does not have any impact on the operating cash flows of the group. Moreover, part of the promotion expenses and expenses incurred for the expansion of the group's business are one-off expenses and the business operation in the new operating spots in China and Hong Kong has generated revenue for the group during the year 2011.

Despite the above, the board notes that the turnover derived from the principal business of the group comprising the provision of funeral services remains stable for the year ended 31 December 2011. Furthermore, the board considers that the overall financial position and business operation of the group remain sound and solid.