Based on the preliminary review by the board of directors of KVB Kunlun Financial Group Limited, the unaudited management accounts of the Group for the year ended 31 December 2017, the Board announced that the Group is expected to record a decrease in net profit for the Relevant Year as compared to the net profit recorded for the year ended 31 December 2016. Such decrease in net profit recorded for the Relevant Year was mainly attributable to: the increase in referral fees and other charges mainly caused by the increased commission rebate to external parties; the decrease in cash dealing income which was mainly attributable to decline in trading volume in cash dealing business and revaluation loss on open positions as at 31 December 2017; and the increase in administrative expenses mainly due to increased marketing expenses, customer handling fee expenses and computer services expenses as the Group expanded its business operation.