The board of PPS International (Holdings) Limited announced that, based on the information currently available to the management of the Group, it is expected that the Group will record a significant increase in the net loss for the nine months ended 31 March 2016 as compared to the net loss for the nine months ended 31 March 2015. Based on the information currently available, the Board believes that the significant increase in the net loss for the nine months ended 31 March 2016 as compared to the net loss for the corresponding period in 2015 is primarily attributable to the following reasons, including, amongst others: the net loss of approximately HKD 4.1 million incurred from the auto beauty services business which was acquired in April 2015; the decrease in gross profit generated from environmental and cleaning business by approximately HKD 4.5 million primarily as a result of the inflation in the direct labor costs and sub-contracting fees; and the deterioration of the profit margin ratio of some contracts secured due to fierce market competition; the recognition of the share-based payment expenses of approximately HKD 6.6 million related to the grant of share options to eligible persons of the Group as announced by the Company on 11 December 2015 which is one-off and non-cash in nature; the increase in administrative and operating staff costs for business development and expansion of environmental and cleaning business and auto beauty business by approximately HKD 4.4 million; and the increase in legal and professional fees by approximately HKD 8.9 million incurred from the professional advisory services for the Group's business development and the legal issues.