Huiyin Household Appliances (HKG:1280) announced that its net profit for the year ended 31 December 2011 is expected to decrease significantly as compared to 2010.

The change is mainly attributable to the following reasons: the gross margin of the group decreased, mainly due to the impact of macro-economic policies and the increasing cost pressure in the industry; the making of certain provision for receivables from suppliers after having considered the increased operating pressure of upstream companies in the industry in the second half of 2011; and differences arising from the finalisation of the consideration payable to be made to the joint venture partner for its transfer of inventory, fixed assets and employees to the joint venture, namely Huainan City Four Seas Huiyin Household Appliances Company Limited.

Details in respect of the establishment of the joint venture were set out in the published announcements of the Company dated 20 September 2010, 21 October 2010 and 7 January 2011 respectively.

The company plans to announce its 2011 results by the end of March.