Based on the preliminary review by the board of directors of the company on the unaudited management accounts of the Group for the three months ended 31 March 2017, KVB Kunlun Financial Group Limited is expecting to record a loss for the three months ended March 31, 2017 as compared to the net profit recorded for the three months ended 31 March 2016. Such loss recorded for the relevant period was mainly attributable to (i) the decrease in leveraged foreign exchange and other trading income mainly resulted from the low market volatility; (ii) the increase in referral fee and other charges mainly caused by the increased commission rebate to external parties (including margin business and PRC operations); and (iii) the increase in administrative expenses mainly due to increased marketing expenses, regulatory and compliance expenses, computer services expense and customer promotion expenses as the Group expanded its business operation.