Based on a preliminary review of the unaudited consolidated management accounts and the information currently available, the Board of Daphne International Holdings Limited informed the shareholders of the company and potential investors that, for the six months ended 30 June 2015, the group is expected to have a significant decline in profit. The decline in profit was mainly attributable to decline in same-store sales, decreased sales, negative operating leverage which resulted from the high fixed-cost structure of the group's retail operation.