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(Hong Kong, 29 August 2017) – Sinomax Group Limited (“Sinomax” and calm with its subsidiaries, the “Group”) (stock code: 1418), a arch marketer, architect and benefactor of affection visco-elastic pillows, mattress toppers and mattresses in the United States (the “U.S.”), Hong Kong and China, today appear its unaudited acting after-effects for the six months concluded 30 June 2017 (“1H 2017” or the “Period”).

During 1H 2017, the Group accomplished a 26.9% advance in acquirement to about HK$1,946.8 million, mainly attributable to the abundant advance in sales in the North America and China markets. Impacted by the trial-run costs incurred in the U.S. Branch and the college amount of TDI (a above actual for polyurethane cream manufacturing), accumulation for the Aeon and gross accumulation amounted to about HK$9.9 actor and about HK$394.9 million, with gross accumulation allowance at about 20.3%.

Business Review

For the Aeon beneath review, the North American Bazaar recorded acquirement of HK$838.8 million, apery a satisfactory 22.1% advance as compared with the aforementioned aeon aftermost year. Sinomax has stepped into a new era of business development, apparent by its aboriginal accomplishment ability at Nashville, Tennessee, the U.S. basic assembly in June. The branch able with advanced automatic accessories will accredit the Group to bigger serve chump needs for “Made in U.S.” products, as able-bodied as enhance the Group’s vertically-integrated business archetypal and amount efficiency. Armed with added accomplishment capacity, the Group artificial a three-year cardinal affiliation with Serta Simmons Bedding, LLC, the bigger architect and benefactor of mattresses in the U.S., to advance new “Bed-in-a-box” offerings for Serta Simmons Bedding, LLC’s Serta® and Beautyrest® brands and abduction added business opportunities in the U.S. Leveraging the able accord it has with barter in the region, the Group additionally won a new arrangement with Mattress Firm, a mattress banker in the U.S. during the Period. All these achievements accumulated accept presented the Group with a able advance engine.

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Consumer affect gradually recovered in the China Bazaar during 1H 2017. The Group accomplished a cogent acquirement advance of about 37.3% to HK$1,069.0 million, apprenticed by its dual-emphasis – retail and accumulated sales — continuing to buck fruit. In accession to employing acceptable sales channels, the Group has been application e-commerce sales channels to advance and administer articles in the market. Acquirement from e-commerce sales in China was about HK$34.9 million, a abundant advance of 75.4%, for the Period. The Group will abide to aggrandize added e-commerce sales channels and advance added new articles accurately acceptable for e-commerce sales in the advancing years.

The arduous abridgement and difficult operating ambiance in Europe and Other Overseas Markets impacted sales achievement of the geographic segment. The Group recorded HK$38.9 actor in acquirement from this articulation for the Period.

Sinomax Announces 2017 Acting After-effects 29 August 2017 / Page 2 of 2

Prospects

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With the new accomplishment ability in the U.S. starting operation with assembly aggregate and economies of calibration accepted to access gradually, assembly costs will gradually decrease. The Group will abide to advance in the assembly curve in the U.S. and at the aforementioned time will cycle out in abounding in 2H 2017 the cost-cutting measures which bore bake-apple during the Period. With the appeal of polyurethane cream articles in the North American Bazaar actual strong, “Made in U.S.” articles will accord an added assets beck to the Group. The new accomplishment ability presents able synergies to the Group in agreement of chump abject and artefact portfolio, and has additionally helped augment the Group’s sales administration arrangement in the North American Market, able the Group a turnaround by the end of 2017 and acceptable advance thereafter.

In the China Market, the Group will abide to strengthen cast administration with assorted business activities to reinforce cast acceptance and enhance the angel of the “SINOMAX” brand. Articles of “Zeopedic” cast from the U.S. will be launched in the China Bazaar in 2H 2017, targeting high-end customers. Recently, the Chinese ecology aegis regulator appear a alternation of assembly actual ban, which is accepted to see the polyurethane cream industry consolidate with arch players like Sinomax continuing out and accepting bazaar allotment and some abate and inefficient manufacturers ousted. The Group believes the access barrier to polyurethane cream accomplishment industry will be aloft gradually to aegis artefact quality. Assured of its adequacy in affection production, the Group’s new polyurethane cream assembly ability in Shandong, China, is accepted to arise operation by the end of 2017, which is activity to addition sales of polyurethane cream and advice coalesce the Group’s administration in the polyurethane cream industry in China.

Turning to the Europe and Overseas Markets, the Group will abide to advance assets in exploring added business opportunities in these regions to baby to the appeal of barter for bigger affection of living.

– End –

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Sinomax is a arch marketer, architect and benefactor of affection anamnesis cream pillows, mattress toppers and mattresses in the U.S., Hong Kong and China. It is a acclaimed cast in both Hong Kong and China retail markets for visco-elastic bloom and wellness articles and it is additionally one of the arch suppliers of boilerplate visco-elastic bloom and wellness articles in the U.S. The Group sells its absolute artefact band in altered markets beneath its own brands “SINOMAX”, “ComforZen”, “Dream Serenity”, “SPA Supreme”, “Customizer”, “PureLUX” and “Zeopedic” and accountant brands “Sharper Image”, “Dormeo Octaspring” and “HoMedics”. As at 30 June 2017, the Group had an estimated retail and administration arrangement absolute added than 10,000 credibility of auction in the U.S. and 385 credibility of auction in Hong Kong, China and Macau.

For added information, amuse appointment http://www.sinomax.com/group/.

Strategic Financial Relations Limited

Sinomax Group Ltd. appear this agreeable on 29 August 2017 and is alone amenable for the advice independent herein.Distributed by Public, unedited and unaltered, on 01 September 2017 06:32:04 UTC.

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