Hong Kong — Sinomax, an international flexible foam maker with operations in China and the US, has issued a profits warning for the six months ended 30 June 2016 in a regulatory filing with the Hong Kong Stock Exchange.
The company said it expects "that its profit for the six months ended 30 June 2016 will represent a significant decrease as compared to the corresponding period in 2015."
Sinomax added that this will be due to losses associated with its purchase of Dormeo and operations at the company. The costs incurred in opening and trialing its new foam plant in Tennessee, and recruiting a sales force in the US will also hit profitability in the half, said the firm. It added that there had been a decrease in sales in China and Hong Kong "because of weak customer demand."
The company said that it expects to publish its half year results on 22 August 2016.