Sinomax Group Limited provided earnings guidance for the six months ended June 30, 2016. For the period, the company expects profit will represent a significant decrease as compared with the corresponding period in 2015. Such decrease was mainly attributable to: losses arising from operations and de-recognition of an associate, Dormeo North America, LLC, a company which had been the company's associate company after an acquisition of its 36.5% membership interest in September 2015 and subsequently became the Company's indirect non-wholly owned subsidiary after a further acquisition of its 14.81% membership interest in April 2016; the costs incurred in setting up trial run of production in a new factory and recruiting sales force in the United States; and the decrease in same-store sales and corporate customer sales in Hong Kong and the People's Republic of China due to factors such as weak consumer demand.