AKM Industrial Company Limited provided earnings guidance for six months ended June 30, 2016. For the period, the company expects to record a loss as compared with the profit recorded for the six months ended 30 June 2015. Such loss was mainly attributable to the fact that as the newly set up flexible packaging substrates production lines at Phase II of Suzhou Factory of the Group were still at the stage of trial production, the sales volume was small but large fixed investment was required, resulting in a relatively huge drop in profit margin and benefit of economy of scale has not yet been achieved, thus incurring higher operating costs.