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 the contents of this announcement.

VOLUNTARY ANNOUNCEMENT IN RELATION TO FORMATION OF JOINT VENTURE WITH SINOPHARM TRADITIONAL CHINESE MEDICINE COMPANY LIMITED

This announcement is made by China Vanguard You Champion Holdings 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 of directors (the "Board") of the Company is pleased to announce that on 23 November 2017, the Company through its subsidiary entered into a joint venture agreement (the "JV Agreement") with Sinopharm Traditional Chinese Medicine Co. Ltd (國藥藥材股份有限公司)

(the "Sino-TCM"), a subsidiary of China National Pharmaceutical Group (中國醫藥集團總公司),

for the establishment of a joint venture company (the "JV Company") in Hong Kong mainly for e- commerce, import and export of health-related products, supply chain and related business. The formation of the JV Company is the second strategic move of the Group in the "Internet Plus Health" business which also signified a closer relationship with Sino-TCM.

Reference is made to the announcement of the Company dated 28 February 2017, one of the joint venture formation partner with the Group is 國藥(延邊)電子商務股份有限公司(Sinopharm (Yanbian) Ecommerce Co., Ltd.). This joint venture is to build a nationwide "Internet Plus Health" online-to-offline ("O2O") sales platform, through online and offline channels to conduct marketing

promotion and to sell-non-pharmaceutical products via online distribution channel. Sino-TCM is the major shareholder of 國 藥 ( 延 邊 ) 電 子 商 務 股 份 有 限 公 司 (Sinopharm (Yanbian) Ecommerce Co., Ltd.).

PRINCIPAL TERMS OF THE JV AGREEMENT

The principal terms of the JV Agreement are set out as below: Signing Date : 23 November 2017

The Parties : Sino-TCM and the Group.

Name of the JV Company

: Sinopharm Health Cross Border E-Commerce Company Limited (國藥 健康電子商務有限公司).

Shareholding in the JV Company

: Sino-TCM and the Group will hold 70% and 30% of equity interest in the JV Company respectively.

Principal Business of the JV Company

: Mainly to conduct e-commerce business, development of the e- commerce platform (which including payment gateway, membership management and interactive marketing), import and export of health- related products, supply chain.

Roles of the Parties

: 1. Sino-TCM shall utilize their experience in the health product market and the production capability in health product to explore new markets

2. The Group shall utilize its advantages in "Internet Plus" to formulate strategies to explore overseas market and bring in overseas brands to Hong Kong and the PRC markets.

Registered Location of the JV Company

: Hong Kong

The JV Company will apply for the relevant approvals and authorizations on the establishment and the operation as required.

The Board considers that the JV Agreement was entered into in the ordinary course of business of the Company and on normal commercial terms after arm's length negotiation.

To the best of the Board's knowledge, information and belief having made all reasonable enquiries, Sino-TCM is a third party independent of and not connected with the Company and its core connected person (as defined in the Rules Governing the Listing of Securities on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited (the "GEM Listing Rules")).

REASONS FOR AND BENEFITS OF FORMATION OF JV COMPANY

The Group is determined and has been firmly executing the development direction of "Internet Plus". Entering into the JV Agreement is one of the footstep along our line of "Internet Plus Health"

business and further leverages on the "Internet Plus Health" segment of the strategic partnership with Tencent Cloud Computing (Beijing) Company Limited (騰訊雲計算(北京)有限責任公司) ("Tencent Cloud"). Reference is made to the announcement of the Company dated 2 October 2017.

Through respective strengths of the Parties, the Board believes that the JV Company shall utilize the advantages of market position, experience, product line and operation of Sino-TCM to create advantages in the JV Company; while the Group can assure the technical and operational development of the "Internet Plus" of the JV Company, which includes the online e-commerce platform with the interactive marketing solution for Hong Kong and the overseas.

ABOUT THE GROUP

The Group is engaged in provision of the hardware and software solutions to the lottery industry in a number of provinces and cities in the PRC. In addition, the Group has expanded its business into the scope of "Internet Plus" services in various market segments through its "Internet Plus Lottery", "Internet Plus Government Affairs", "Internet Plus Health" and "Internet Plus Tourism". The Group provides online-to-offline interactive solutions mainly via the Weixin platform. The Group is also the priority strategic partner of Tencent Cloud on a nationwide basis in four specific market segments, namely government affairs, public security, health care and lottery.

ABOUT SINO-TCM

Sinopharm Traditional Chinese Medicine Co. Ltd. (國藥藥材股份有限公司), a company under China National Pharmaceutical Group which is known as Sinopharm. Sinopharm is a pharmaceutical group which is directly under the State-owned Assets Supervision and Administration Commission of the State Council of the PRC. In 2016, Sinopharm was listed in Fortune Global 500 for four consecutive years and ranked from 446th in 2013 to 205th in 2016. Sinopharm was the only pharmaceutical company from the PRC in the list.

IMPLICATION UNDER THE GEM LISTING RULES

As all of the applicable percentage ratios under Rule 19.07 of the GEM Listing Rules in respect of the establishment of the JV Company and the transactions contemplated under the JV Agreement are less than 5%, the entering into the JV Agreement and the transactions contemplated thereunder does not constitute a notifiable transaction under Chapter 19 of the GEM Listing Rules.

By Order of the Board

CHINA VANGUARD YOU CHAMPION HOLDINGS LIMITED

眾彩羽翔股份有限公司*

CHAN Ting

Executive Director and Chief Executive Officer

Hong Kong, 23 November 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. YANG Qing Cai as Independent Non-executive Director.

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

China Vanguard Group Ltd. published this content on 24 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 November 2017 06:06:10 UTC.

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