The board of directors of Kingbo Strike Limited announced that based on the information currently available and the preliminary review of the Board of the unaudited consolidated management accounts of the Group for the year ended June 30, 2017, the Group is expected to record a loss of not less than SGD 29 million as compared to a profit for the corresponding period in 2016. The expected loss of the Group was primarily due to: a provision of not less than SGD 40 million for goodwill impairment. Reference is made to the inside information announcement of the Company dated 2 August 2017; and a decrease in fair value of profit guarantee receivable in the amount of approximately SGD 9 million, in respect of the Group's acquisition of the 60% equity interests in Kahuer Holding Co., Limited and its wholly-owned subsidiaries on 27 May 2016.