The board of directors of Walker Group Holdings Limited informed the shareholders of the Company and potential investors that based on the preliminary review of the unaudited consolidated management accounts of the Group for the eleven months ended 29 February 2016, the Group is expected to record a significant increase in loss for the year ending 31 March 2016 as compared to the loss recorded for the corresponding period in 2015. The Board believes that the expected loss of the Group was mainly attributable to overall decline in sales in Hong Kong and the People's Republic of China and escalating operating costs in the regions.