Carry Wealth Holdings (HKG:0643) says that it expects continued substantial loss for the year ended 31 December 2011 as compared with that of year 2010.

The expected loss is mainly due to a number of factors, including: shrinkage in sales orders from the group's long-standing US customers and a squeeze on the group's profit margin due to increasingly fierce price competition for orders from the group's customers and rising production costs for the group's factories; and a substantial amount of one-off employee compensation and possible impairment provision to be made on fixed assets for the group's factories located in Indonesia which had ceased operation in the fourth quarter of year 2011.

The company plans to announce its 2011 annual results next month.