The board of directors of Cabbeen Fashion Limited announced that the Board expects that the net profit of the group for the six months ending 30 June 2016 will decrease by more than 30% as compared to that of the same period in 2015. The Board considers that the expected decrease in net profit for the six months ending 30 June 2016 is mainly attributable to lower-than-expected revenue from consignment and self-managed stores, an increase in provision for sales return and inventory, an increase in selling and distribution expenses, a reduction of government grant income and stock loss on flooding in one of warehouses in Guangzhou. The decrease in the revenue, an increase in sales return and inventory provision and the increase in selling and distribution expenses reflect the weakening of the retail market in the People's Republic of China, which has started to impact the Group's sales since 2016. The Board expects the weak retail market in the PRC will continue to negatively affect the Group's performance in the second half of 2016.