Casablanca Group Limited provided consolidated earnings outlook for five months ended May 31, 2016. For the period, the company expects the Group will record a profit as compared to a loss for the corresponding period in 2015. Based on the information currently available, such turnaround from loss to profit, with taking into consideration of the estimated impairment loss on the available-for-sale investment and convertible bond, is mainly due to the factors: the significant sales of bed linens under a bulk-purchase agreement to a wholesale customer in Hong Kong offsetting the decrease in sales in the People's Republic of China (the "PRC"); the decrease in selling and distribution costs, especially the advertising and promotional expenses in Hong Kong and the concessionaire commissions and related expenses for department store counters in the PRC; the decrease in expenses of share-based payment for share options granted; and the gain on the liquidation of a subsidiary in the PRC.