Smartphone maker HTC is working on a new mobile operating system targeting Chinese consumers in efforts to revive its plunging sales performance.

The new project, expected to be launched by end of 2013, go in line with the Chinese government’s policy to build a domestic software system, reducing their dependence on Western firms, according to the Wall Street Journal.

Reports reveal that the new OS would have a strong focus on Chinese web services and apps including Twitter-like microblog Weibo.

HTC has reportedly delivered prototypes of smartphones powered by its new OS to Chinese officials, which are being trialled.

HTC reported a 36.9% drop in its Q1 revenue to NT$42.8bn ($1.42bn), although it anticipates a 63.6% rise in revenue during the second quarter of 2013.