The Board of Directors of Khong Guan Limited would like to issue a profit guidance in respect of the group financial results of the Company for the full year ended July 31, 2020. Based on the preliminary review of the consolidated management accounts of the Group for the full year ended July 31, 2020, the Group is expected to incur a loss in part due to the increased provisions of fair value loss on the short-term quoted securities of $398,000 (2019: $195,000) under the adverse stock market conditions. In spite of Covid-19 pandemic and Movement Control Order (MCO), Malaysian operations remained profitable.