CP Lotus Corporation provided earnings guidance for the six months ending June 30, 2016. The board of directors of the company announced that the Group is expected to record a loss for the six months ending June 30, 2016 as compared to a profit of approximately RMB 32.9 million for the corresponding period in 2015. The expected change from a profit to a loss is mainly attributable to the following reasons: a reduction in gross profit resulting from a decrease in revenue, with the sales contribution from new stores not being sufficient to offset the decline in same store sales; and an increase in store operating costs as a result of the opening of five new stores in the second half of 2015.