The board directors 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 net loss for the three months ended September 30, 2015 as compared to the net profit for the three months ended September 30, 2014. Based on the information currently available, the Board believes that the deterioration from net profit for the three months ended September 30, 2014 to net loss for the corresponding period in 2015 is primarily attributable to the decrease in gross profit generated from the environmental and cleaning business by approximately HKD 2.1 million primarily as a result of the inflation in the direct labour costs and the increase in direct overhead expenses; the increase in administrative and operating staff costs for business development of environmental and cleaning business by approximately HKD 1.3 million; the increase in legal and professional fees by approximately HKD 0.4 million arising out of the expansion of the Group's business and the initial set up costs for the Group's subsidiaries in the PRC; and the net loss of approximately HKD 1.5 million incurred from the auto beauty services business which was newly acquired in April 2015.