PPS International (Holdings) Limited provided earnings guidance for the year ended June 30, 2015. For the year, the group expected to record a net loss as compared to the net profit for the year ended 30 June in 2014. Based on the information currently available, the Board believes that the deterioration from net profit for the year ended 30 June 2014 to net loss for the corresponding period in 2015 is primarily attributable to (i) the decrease in gross profit of the Group by approximately HKD 3.3 million primarily as a result of the inflation in the direct labour costs and the increase in direct overhead expenses; (ii) decrease in other income mainly due to the reversal of over provisions for staff costs by approximately HKD 4.0 million; (iii) increase in administrative and operating expenses by approximately HKD 14.1 million mainly attributable to the increase in administrative and operating staff expenses for business development by approximately HKD 1.8 million, the increase in motor vehicles expenses by approximately HKD 1.4 million, and also the increase in legal and professional fees by approximately HKD 6.4 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; (iv) one-off forfeiture of a deposit of HKD 4.5 million paid for the possible acquisition of Hong Kong Automobile Restoration Group Limited which was terminated on 9 January 2015; (v) impairment loss on the goodwill for the Elite Car Services Limited and its subsidiaries of approximately HKD 8.5 million due to termination of several auto beauty centers; and (vi) impairment loss on purchase deposit of approximately HKD 4.5 million relating to the purchase of cleaning material.