China Vanguard : Voluntary Announcement - Won a Tender of New Media Services for Shenzhen Traffic Police

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VOLUNTARY ANNOUNCEMENT WON A TENDER OF NEW MEDIA SERVICES FOR SHENZHEN TRAFFIC POLICE

This announcement is made by China Vanguard Group Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep the shareholders and potential investors informed of the latest business development of the Group.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that the Company, through a wholly-owned subsidiary, has recently succeeded in winning a tender in the provision of new media services for 深圳市公安局交通警察局 (Shenzhen Traffic Police) ("SZTP"). The Group will provide the services for SZTP's new media platforms including its WeChat Service Account, WeChat Subscription Account, and Weibo, etc. (the "New Media"). The New Media's services (the "Services") include but not limited to assurance for stable operation, enhancing general informational and functional services platform for the New Media, publishing information regularly, providing better customer services, and enhancing influence of the New Media on the public. Through the Services, SZTP can provide the platform services to the public in

a convenient manner and the public can access various SZTP related services without leaving their homes. It not only meets the needs of the public, but also avoids queuing which is more convenient, time saving, and environment-friendly. The Services are provided on the basis of the features of our recently launched proprietary interactive marking solution.

Currently, SZTP adopts the New Media as communication channels with the public, and it has obtained approximately 2.20 million followers on its WeChat Service Account, and approximately

1.65 million followers on its Weibo account, ranked seventh in the top 100 PRC's government official Weibo accounts for the first half-year of 2016 according to People's Daily. Therefore, SZTP invites professionals to provide integrated operation and maintenance services to the New

Media's users via the tender.

BENEFITS OF WINNING THE TENDER TO THE GROUP

The monthly active accounts of WeChat and 微信 reached 846 million in the third quarter 2016, while the number of Weibo's monthly active users reached 297 million in September 2016. The New Media has become a more important communication channel for the PRC government and business organizations with the public, while the PRC government work report is also clearly proposed to develop the direction for "Internet Plus". The Board is of the view that winning this tender is a stepping stone for the Group to further apply our proprietary interactive marketing solution to the government affairs. Through this cooperation, our proprietary interactive marketing solution will facilitate SZTP using the New Media conveniently to enhance its interaction with the public and provide more diversified services. This valuable experience will help the Group to offer more "Internet Plus" services to other government authorities and business organizations in the future. Moreover, the aforementioned solution and services could be replicated throughout the PRC so as to make people's living more convenient and contribute to the society.

Our proprietary interactive marketing solution is currently applied in our "Yao Cai" cooperation with certain lottery centers in five provinces/cities of the PRC. Besides, the Group will apply our proprietary interactive marketing solution to "Internet Plus Tourism" and "Internet Plus Health". The details have been disclosed in the voluntary announcements of the Company dated 6 December 2016 and 29 December 2016, respectively. At the same time, the Group is actively applying the relevant solution to different scenarios. Through this cooperation with SZTP, our proprietary interactive marketing solution can be firstly introduced to the government affairs and is in line with the Group's development direction. The Board believes that it can explore new business opportunities for the Group.

By order of the Board

CHINA VANGUARD GROUP LIMITED

眾彩科技股份有限公司*

CHAN Ting

Executive Director and Chief Executive Officer

Hong Kong, 9 January 2017

As at the date of this announcement, the Board of the Company comprises Madam CHEUNG Kwai Lan, Mr. CHAN Ting as Executive Directors, Mr. CHAN Tung Mei as Non-executive Director and Mr. ZHANG Xiu Fu, Mr. YANG Qing Cai and Mr. TO Yan Ming Edmond as Independent Non- executive Directors.

This announcement, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the "Latest Company Announcements" page of the GEM website at www.hkgem.com for a minimum period of 7 days from the date of its publication and on the website of the Company at www.cvg.com.hk.

* For identification purposes only