The board of directors of China Maple Leaf Educational Systems Limited announced that, based on a preliminary review of the unaudited management accounts of the Group for the year ended August 31, 2015, the Group is expected to record a very significant increase in net profit for the year ended August 31, 2015, as compared with that of the year ended August 31, 2014. Based on information available to date, the expected increase in net profit was primarily attributable to the combined effects of: an increase in operating profit due largely to the increased profitability of certain schools resulting from an increase in student enrollment which has improved the utilization rate of the relevant schools; a decrease in finance costs due largely to the repayment of bank loans with net proceeds from the listing of the company's shares on The Stock Exchange of Hong Kong Limited on 28 November 2014; and a decrease in fair value loss related to the redeemable convertible preferred shares issued to pre-IPO investors which were all converted into ordinary shares upon Listing, a gain on disposal of assets classified as held for sale as disclosed in the company's 2015 interim report and a decrease in expenses related to the Listing.