The board of directors of Kwoon Chung Bus Holdings Limited informed the shareholders of the company and potential investors that, based on the Board's preliminary review of the unaudited consolidated management accounts of the group for the year ended 31 March 2017 which have not been audited by the auditors of the company nor reviewed by the audit committee of the Board, it is expected that the group will record a considerable increase in profit by approximately 30% for the current year as compared to that of the year ended 31 March 2016. The Board considers that such expected increase is mainly due to a one-off significant gain on bargain purchase recognised in the acquisition of the entire issued share capital in a group of companies engaging in non-franchised bus business, details of which were disclosed in the company's announcement dated 1 September 2016; and the moderate improvement in operating results of the non-franchised bus and hotel and tourism segments in the current year.