Changmao Biochemical Engineering (HKG:8208) says that although there is an estimated increase in its group's turnover for the year ended 31 December 2011, the group is likely to record a decline in the consolidated net profits for that year, as compared with the consolidated net profits for the year of 2010.

The board believes that the group's financial performance has been affected mainly by the decline in gross profit margin as a result of the increase in raw material cost and the deterioration of the results of the associate company of the group for the year ended 31 December 2011.