Sinomax Group Limited provided unaudited consolidated earnings guidance for the year ended December 31, 2016. For the year, the Group's profit for the year ended 31 December 2016 will decrease over 40.0% as compared to the year ended 31 December 2015. Such decrease was mainly attributable to: losses arising from operations and derecognition of an associate, Dormeo North America, LLC, a company which initially became 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 of America; the decreases in corporate customer sales in Hong Kong and mainland China due to factors such as weak consumer demand; and the significant increase in the purchase price of a key raw material of polyurethane foam, namely toluene diisocyanate in the fourth quarter of 2016.