Walker : 2016-5-26 BUSINESS UPDATE

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

WALKER GROUP HOLDINGS LIMITED

盈 進 集 團 控 股 有 限 公 司 *

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1386) BUSINESS UPDATE

The board of directors (the "Board") of Walker Group Holdings Limited (the "Company", together with its subsidiaries, the "Group") is pleased to provide an update on the development of the Group's business.

On 26 May 2016, the Company entered into a letter of intent (the "Letter of Intent") with Mr. Paolo Cesare Maldini ("Mr. Maldini"), pursuant to which the Company will (i) research and develop new products in the name of Mr. Maldini, including shoes, clothing and other derivative products; and (ii) set up lifestyle concept stores and develop a series of marketing strategies. Pursuant to the Letter of Intent, Mr. Maldini agreed to participate in products development and the set up of lifestyle concept stores including cafe, restaurant, wine tasting zone and fashion magazine zone by utilising his own personal image.

Mr. Maldini is a former Italian professional footballer who played for A.C. Milan and the Italy national team. He had captained A.C. Milan and the Italy national team for many years and was considered a leader by fellow footballers. He had also won a lot of trophies with A.C. Milan during his career and is a well-known icon of professional footballer. Mr. Maldini is a third party independent of and not connected with the Company and its connected person (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited).

To diversify the Group's business and maximise the return to shareholders, the Group has been actively transforming the operation mode of existing retail points and opening a greater variety of retail and catering business. The Board is of the view that the entering into of the Letter of Intent is in the interests of the Company and its shareholders as a whole.

* For identification purpose only

Shareholders and investors should note that transactions contemplated under the Letter of Intent may or may not proceed and accordingly, they should exercise caution when dealing in the securities of the Company.

By order of the Board

Walker Group Holdings Limited Zhu Xiaojun

Chairman

Hong Kong, 26 May 2016

As at the date of this announcement, the Board comprises:

Executive Directors:

Mr. ZHU Xiaojun

Mr. KANG Jianming Mr. WANG Lingxiao Ms. CAI Jiaying

Mr. YIN Wansun

Non-executive Director:

Mr. CHEN Mingzhong

Independent non-executive Directors:

Mr. CHEN Jianzhong Dr. HE Chengying

Mr. HU Jinxing Ms. ZHAO Hong