Walker Group Holdings Limited provided earnings guidance for the year ending March 31, 2014. The company announced that based on the preliminary estimate and assessment made by the board with reference to the latest unaudited consolidated management accounts of the company, it is estimated that the group may record a substantial loss for the year ending March 31, 2014, which is expected to be approximately two times the loss for the previous financial year. The estimated loss is mainly attributable to the following reasons: A change of inventory provision policy.

The Company has adopted a new policy which is expected to result in a significant increase of provision for inventories. This newly adopted provision policy relates more realistically to the current market conditions; A significant loss of impairment value of an acquired trademark; and The estimated operating loss to be recorded in the current financial year. The poor market conditions for consumable goods and the severe competition continued, with the decline in sales and the rise in operating costs during the second half of the year.

While the majority of the above estimated loss arises from non-cash items namely, the provision of inventories and impairment of trademark, thus the Board is of the view that the financial position and the cash flow of the Group remain sound and stable.