Daphne International Holdings Limited provided consolidated earnings guidance for the first half ended June 30, 2016. Based on a preliminary review of the unaudited consolidated management accounts of the group and the information currently available, the board announced for the six months ended 30 June 2016, the group expects to record a loss. The loss was mainly attributable to decreased sales, due to significant net store closures and negative same-store sales, as consumer demand was still sluggish during the period under review, and store traffic was adversely affected by unfavourable weather which was marked by frequent rain storms and flooding in China during the second quarter of the year. Material drop in gross profit margin as a result of higher sales mix of aged products. Despite the expected loss of the group for the six months ended 30 June 2016, the board considers that the group's overall financial position remains stable.