Skyworth Digital Holdings, China's second-largest television maker, has warned that its net profit for the year ended March would be significantly below market expectations due to restructuring at its consumer electronic products business and overseas television business. 'The operations of our overseas TV business and two smaller business units engaged in consumer electronic products were still being restructured and therefore did not perform as expected,' the company said in a statement filed with the Hong Kong Stock Exchange yesterday. 'Our net profit was adversely affected, despite satisfactory sales growth in our mainland TV and set-top box businesses.' Skyworth's profit warning follows a similar warning in April by its bigger rival TCL Multimedia Technology Holdings, which said fourth-quarter results were affected by higher restructuring costs at its European operations. Skyworth shares finished down 0.8 per cent at HK$1.28 yesterday before the profit warning. The company, which posted a 42.6 per cent decline in net profit to HK$216 million for the year ended March last year, said it would announce its annual results by the end of this month. In December last year, the company said first-half core profit rose to HK$57 million, from HK$43 million a year earlier, excluding exceptional losses in both periods. Sales rose 21 per cent to HK$5.6 billion. Overall overseas television sales by the company surged 2.7 per cent to HK$666 million in the first half, representing 11.9 per cent of sales. The gross margin on overseas television sales was 1.6 per cent, down 3.7 percentage points year on year. 'We will be very careful when expanding overseas sales because market demand is changing so rapidly,' Skyworth chief executive Zhang Xuebin said in January.