Pou Sheng International (Holdings) Ltd. provided earnings guidance for the six months ended March 31, 2012. The Group is expected to record a loss attributable to owners of the company in its unaudited consolidated results for the six months ended March 31, 2012 as compared with a profit attributable to owners of the company for the six months ended March 31, 2011. The negative performance is mainly attributable to a decrease in profit due to the expiry of the Group's exclusive distributor arrangement for Converse products in the People's Republic of China on December 31, 2011; increases in selling and distribution expenses, in particular, staff costs, rental and concession expenses; higher sales discount being offered due to in an effort to reduce excess inventory which has accumulated over time and less gain on deemed disposal of different jointly controlled entities.