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Vitasoy Recorded Healthy Sales Growth for 1H FY2007/2008
Date:11/26/2007

Attributed to Aggressive Product Innovation and Effective Marketing

Strategy

HONG KONG, Nov. 26 /Xinhua-PRNewswire-FirstCall/ -- Vitasoy International Holdings Limited (VIHL, Vitasoy or "the Group") (HKEx: 0345), a Hong Kong- based manufacturer and distributor of non-carbonated beverage and food, today announced that its turnover for the six months ended 30 September 2007 grew by 14.2%, to HK$1,514 million. The Group recorded a profit attributable to shareholders of HK$105 million, a healthy growth of 5.0% compared to the same period of the preceding year.

Mr. Winston Yau-lai Lo, Executive Chairman of VIHL said, "Under an orchestrated campaign of aggressive product innovation and effective marketing initiatives, the four operating markets reported satisfactory operating performance. These efforts have also helped strengthening the leading position of many of our products in various markets. During the period, there was remarkable growth in the Mainland China and Australian markets, while Hong Kong also reported some solid growth. We achieved our goal of reducing the North American business operating loss, paving the way for further improvement. The Group strategically increased its advertising and promotional expenses in order to effectively launch new products and substantially reinforce the brand value of 'Vitasoy'. We believe it will benefit the Group's expansion and brand value in the long run despite its short-term impact on the growth of operating profit."

The Group's basic earnings per share were HK10.4 cents, representing 5.1% growth over the same period of the preceding year. The Board of Directors has declared an interim dividend of HK2.8 cents per share (2006/2007 interim: HK2.8 cents per share).

During the interim period, Vitasoy reported an encouraging growth of 14.8% in gross profit, amounting to HK$894 million. Despite the general rise in production costs, the Group's gross profit
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SOURCE Vitasoy International Holdings Limited
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