Stelux Holdings International Limited provided earnings guidance for the year ended March 31, 2016. For the period, the Group is expected to record a material loss attributable to equity holders of the company. The anticipated consolidated net loss is mainly attributable to: borrowing costs of convertible bonds approximately HKD 56 million due to change in fair value of liability component of convertible bonds; a decrease in turnover and gross profit caused by weak retail sentiment leading to negative operational leverage; an exchange loss arising from payables on purchase of goods due to depreciation of currencies in Southeast Asia, in particular the first half of the financial year; and an impairment in respect of certain intangible assets relating to the watch movement assembly business.

Despite the anticipated loss, the Group is expected to report a positive operating profit in Hong Kong, Macau and Malaysia.