Tighter controls by China on imports of building materials are expected to have caused a fall of 10 per cent in the contribution to turnover from Arnhold Holdings' China business last year. Michael Green, the managing director of the building materials and engineering equipment supplier, says China is likely to account for 23 per cent of turnover compared with 33.5 per cent, or $209.8 million, the previous year. The group will announce its results for the year to December later this month. Mr Green said the fall in the mainland contribution to turnover was further exaggerated by the resurgence of the Hong Kong property market in the second half, which boosted the group's local sales. 'We expect this year's turnover from China to come back to one-third,' he said. 'Orders in China in the forth quarter were strong, especially from the emerging cities such as Dalian and Chengdu.' Mr Green said the group was to make a provision of $8 million because of the liquidation of its debtor Grand Choice Construction - ex-principal contractor of Wheelock Properties' Forest Hill development. The group has just been awarded $92 million in contracts for its natural stone business. One is the $60 million Kowloon-Canton Railway Corp project in Mongkok. The second, worth $32 million, is on the redevelopment of Cityplaza phase I. Mr Green said Arnhold was to invest at least $20 million on a natural stone plant in Yuen Long. 'By June, the factory will be in full operation and we expect to make profit within the first year of operation,' he said.