A cartel-like association formed by nine leading mainland television-set makers will cut output in a bid to halt a price fall. The move was announced by Hong Kong-listed Skyworth Digital Holdings - one of the associations' members - with analysts predicting the cut would mean a 20 per cent reduction in the country's production of 21-inch standard colour TV sets. Skyworth chairman Stephen Wong Wang-sang said they chose the 21-inch set because it faced the biggest downward pressure. Mr Wong said one of the associations' objectives is to prevent manufacturers from dumping products at prices below cost. The attack appears to be directed at the mainland's top TV-maker Sichuan Changhong Electronics Group, which has led a fierce price war in the past few years to gain market share. Industry leaders such as Konka, TCL, Hisense and Nanjing Panda joined the price association China Television Makers Summit, representing 70 per cent of the mainland's market share. Mr Wong said the summit would meet on a bi-weekly basis to monitor the market. However, Mr Wong did not specify what measures the summit could take to prevent manufacturers from dumping, only saying some kind of task force would be set up to monitor the market. The latest decision follows moves by association members to raise prices about 5 per cent from July 1 as part efforts to shore up product prices. The move triggered criticism from the State Development Planning Commission - which oversees product prices in the mainland - saying the association was monopolistic and illegal. However, Mr Wong said the association had support from the Ministry of Information Industry - which oversees the mainland's electronics industry. Despite the expected output cut, Mr Wong said Skyworth would be little affected. 'Smaller TV sets represent only 25 per cent of total sales volume,' he said. The company would opt to produce more high-end products such as digital televisions to improve its profit margin. In the year to March 31, Skyworth posted a net profit of HK$318.3 million, up 32 per cent from HK$240.7 million in the previous year. Turnover increased 27 per cent to HK$3.81 billion from HK$3 billion previously. More than 90 per cent of turnover was generated from the sales of colour TV sets. Earnings per share was 22.3 HK cents. No dividend was declared. Vice-chairman Henry Lau believes that within four years, other products - such as software and audio-visual players - will have a 50 per cent share in revenue.