VS International Group Ltd. provided earnings guidance for the year ended July 31, 2016. The board of directors of the company informed its shareholders and potential investors that the Group is expected to record a substantial increase in its loss for the year ended 31 July 2016 as compared to that of the Group for the year ended 31 July 2015. The increase in loss is mainly attributable to a provision to be made for impairment in respect of other receivables, prepayments and deposits (which mainly comprised the Deposits) for the year ended 31 July 2016. Notwithstanding the Settlement Agreement, such provision for impairment is made for the sake of prudence based on the Board's conservative approach in assessing the collectability of the Deposits.