The board of directors of Genvon Group Limited announced that the company and its subsidiaries is expected to record an increase in loss for the year ended December 31, 2011 as compared to the year ended December 31, 2010. The expected increase in loss was mainly attributable to the decrease in operating margin as a result of the rise in cost, as well as the lack of certain one-off income arising from fair value gain on conversion option embbed in conversion rights of the convertible notes and write-back of other payables recorded in year 2010.