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

PROFIT WARNING

This announcement is made by the Company pursuant to Rule 17.10 of the GEM Listing Rules.

The Board would like to inform the shareholders and potential investors that the Group is expected to record an increase in net loss for the six months ended 31 December 2012 as compared to the net loss for the six months ended 31 December 2011.

The information contained in this announcement is only based on the preliminary assessment by the

Company's management according to the unaudited management accounts of the Group.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by China Vanguard Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 17.10 of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (the "GEM Listing Rules").

The board of directors of the Company (the ''Board'') wishes to inform the shareholders of the Company and potential investors that the Group is expected to record an increase in net loss for the six months ended 31 December 2012 (the "Interim Results") as compared to the net loss for the six months ended 31 December 2011. Based on the information currently available to the Board, the anticipated increase in net loss for the six months ended 31 December 2012 was mainly attributable to

an decrease in revenue of lottery business.

Page 1

As the Company is still in the process of finalizing the Interim Results, the information contained in this announcement is only based on the preliminary assessment by the Company's management according to the unaudited management accounts of the Group. The financial results for the six months ended 31 December 2012 of the Group are expected to be announced by the Company in early February 2013.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

China Vanguard Group Limited