The Board of directors of Pou Sheng International (Holdings) Ltd. announced that based on its preliminary review of
unaudited consolidated management accounts of the Group for the fourteen months ended November 30, 2012, the Group is expected that it will further record a substantial loss for the year ending December 31, 2012 after the Group's unaudited second interim results for the twelve months ended September 30, 2012. The expected substantial loss
was mainly attributable to: worse than expected operating results for the two month period after the group's
unaudited second interim results for the twelve months ended September 30, 2012; and greater efforts to clean up the excess inventory (including brand companies buy-back inventory) has led to the decline in gross profit margin.