Vital Group Holdings : ·ANNOUNCEMENT - PRICE SENSITIVE INFORMATION AND PRO..

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.

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 01164)

ANNOUNCEMENT

PRICE SENSITIVE INFORMATION AND PROFIT WARNING

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited.
Reference is made to the announcement dated 4 August 2011 (the ''Announcement'') and the 2011 interim report (the ''Interim Report'') of Vital Group Holdings Limited (the

''Company''). The Company and its subsidiaries are collectively referred as the Group (the

''Group'').

As disclosed in the Announcement, the Group discovers that since June 2011, there has been a substantial drop in the sales of Osteoform compound calcium amino acid chelate food capsule (''Osteoform Food Product''). The food hygiene licence obtained by the Group was expired on 25 November 2011. Due to the change of relevant rules and regulations relating to food hygiene, the food hygiene licence for Osteoform Food Product was unable to obtain its renewal.
Further, considering the uncertainties with the renewal of the import drug licence for Osteoform Compound Calcium Amino Acid Chelate Capsules, the Group has stopped the production of Osteoform Food Product. The Group is currently accelerating the sales of inventory of Osteoform Food Product. In addition, due to integration of production line of Vital Pharmaceuticals (Sichuan) Co., Ltd., a wholly-owned subsidiary of the Company, there was idleness of certain plants and equipment.
As a result of the above events and after reviewing the available financial information of the
Group, the Board is of the view that the profits of the Group for the nine months ended 30
September 2011 are expected to record a substantial decrement when compared with the corresponding period in 2010, due to the impairment for goodwill and inventory, impairment loss for property, plant and equipment of subsidiaries of the Company as a result of integration of production lines, staff compensation and the decrease in sales of Osteoform Food Product.

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The Company is in the process of preparing the unaudited results of the Group for the nine months ended 30 September 2011. The information contained in this announcement is only based on the preliminary assessment by the Company's management according to the preliminary draft consolidated financial statements of the Group. Details of the Group's performance will be disclosed as and when the unaudited results for the nine months ended
30 September 2011 are announced.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in shares of the Company.
By Order of the Board Vital Group Holdings Limited Mr. He Zuyuan
Chief Executive Officer
Hong Kong, 8 December 2011
As at the date of this announcement, the board of directors of the Company comprises two executive directors: Mr. He Zuyuan (chief executive officer) and Mr. Li Zhengguang, four non-executive directors: Mr. Yu Zhiping (chairman), Mr. Wei Qiyan, Ms. Zheng Xiaowei and Mr. Chen Zhiyu and three independent non-executive directors: Mr. Ling Bing, Mr. Qiu Xianhong and Mr. Huang Jinsong.

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