Santak Holdings Limited provided earnings guidance for the six months ended December 31, 2015. The group's turnover for the half year is expected to be higher compared to the previous corresponding period. Nevertheless, the Group expects to report a substantial loss before taxation for the period, albeit slightly lower compared to the loss before taxation for half year of 2015.

The above is mainly attributable to a substantial increase in operating expenses arising from the significant expansion of its operation with the addition of two new factory facilities for the new precision machined component projects which were set up in the previous financial year fiscal year 2015. Although the Group's turnover is expected to be higher in the period, this business increase is lower than expected and is insufficient to offset the greater operating cost increase from the operation of the two new factory facilities.