Long Success International (Holdings) Limited (HKG:8017) expected to record a substantial increase in net loss for the nine months ended 31 December 2011 as compared to the loss for the corresponding period in 2010.

The Company stated that the substantial increase in net loss was due to the interest expenses on convertible notes and bank borrowings; the upfront costs for the building of the biodegradable materials production plant in Zhongshan; and the increases of the costs of energy, steam, water and the purchasing cost of raw materials of paper per ton narrowed the profit contribution from the paper manufacturing business to the Group.