V.S. International Group Limited provided group earnings guidance for the year ended July 31, 2018. The board of directors of the company announced that, based on the information currently available to the Board, the Group is expected to record a net loss of not more than RMB 10 million for the year ended 31 July 2018 as compared to the net profit of approximately RMB 13.48 million for the year ended 31 July 2017. The net loss of the Group for the year ended 31 July 2018 is mainly attributable to the following reasons, an increase in share of loss of an associate of not less than RMB 5 million due to loss incurred by VS Industry Vietnam Joint Stock Company; a decrease of more than 10% in revenue; and a decrease in gross profit and gross profit margin mainly due to increase in costs of raw materials for the production; keen competition in the market reducing the Group's ability to shift the increased costs to its customers; and increase in labour costs.