Tai Shing International (HKG:8103) has warned that its group results for the three months ended 31 December 2011 may experience a loss as compared to an unaudited profit of HK$6.2 million for the corresponding period ended 31 December 2010.

The board considers that such loss was attributable to: the reduction in demand for the group's products which led to a decline of the overall turnover of the group; the decrease of reversal of impairment loss in respect of the group's trade receivables; and a value-added tax refund to the group in the PRC during the period in 2010 (as an incentive for the group's self-developing software) ceased in 2011.

The company plans to announce its results for the three months ended 31 December 2011 on or about 14 February 2012.