The board of directors of Dafeng Port Heshun Technology Company Limited announced that, based on the information currently available and the preliminary assessment of the unaudited consolidated financial statements of the Group for the three months ended 31 March 2018, the Group is expected to record a loss after taxation of approximately HKD 22.4 million for the three months ended 31 March 2018, comparing to a loss of approximately HKD 2.7 million for the corresponding period in 2017. The increased loss was mainly due to the substantial loss of the Group's integrated logistics freight services for the three months ended 31 March 2018 as compared to a profit for the corresponding period in 2017; the one-off subsidies received from the government by (Dafeng Harbour Port Logistics Company Limited), which was disposed by the Company in June 2017, for the three months ended 31 March 2017 whereas no such subsidies was recognised for the corresponding period in 2018; the one-off gain recognised from the disposal of certain of the Group's property, plant and equipment for the three months ended 31 March 2017 whereas no such gain was recognised for the corresponding period in 2018; the increase in the finance costs of the Group; and the increase in administrative expenses incurred in relation to the placing of the unlisted secured bonds of USD 50 million which was completed on 29 March 2018.