The board of directors of the Gemilang International Limited informed the shareholders of the company and potential investors that based on a preliminary assessment by the company's management of the unaudited consolidated management accounts of the Group for the eleven months ended 30 September 2019 (the Period), the Group is expected to record a net profit for the financial year ending 31 October 2019 (the Year) as compared to a net loss recorded for the financial year ended 31 October 2018. Based on the information currently available to the Group, the expected net profit of the Group is mainly attributable to (i) the decrease in the impairment loss on accounts receivable during the Year as compared to that for the financial year ended 31 October 2018; and (ii) the decrease in the selling and distribution expenses during the Year which was mainly attributable to the decrease in sales commission expenses incurred in connection with sales of buses in the Australian market as compared to that for the year ended 31 October 2018.