Better World Naturals US Co., Ltd was established

To whom it may concern:

Huabao Flavours & Fragrances Co., Ltd., hereinafter referred to as "Huabao", is proud to announce the creation of Better World Naturals new regional office in US dedicated to directly addressing US consumer demands for natural, healthy and safe products. The creation of this new regional office translates Better World Naturals ambition to expand its activities overseas and capture growth opportunities within US major markets.

Founded in 2018 by Huabao, Better World Naturals was created to answer the need for quality botanical food, beverage and supplement solutions with a trusted and transparent vertically integrated supply system. For decades, global suppliers have sourced their branded ingredients from China. Huabao understood there was an opportunity to bring these valuable products to market directly through building upon the rich and skilled resources of China. With headquarters in Shanghai, Better World Naturals is within reach of the fields where our raw materials are sourced. Corporate business offices, application and scientific teams, formulation and production facilities are all located in Shanghai. In addition, regional office is located in the United States. Regional office will have local customer service, logistics support, applications and sales. “Huabao has developed a long-term strategy which recognized the opportunity for a trusted, high quality direct source for natural food, beverage and nutritional ingredients. We are very honored to announce the founding of Better World Naturals which will answer these very important market needs.” stated Ms. YUAN Xiaoqin, director and president of Huabao Flavours & Fragrances Co., Ltd.

Better World Naturals Co., Ltd., with the strong support and backing of Huabao, offers natural specialty and healthy ingredient solutions. Their product lines will be focused on four key platforms: natural antioxidants, functional ingredients, natural colors and natural sweeteners. Their markets of focus will be the food, beverage, nutritional, health and personal care markets globally. Designed to answer the market’s need for improved customer service, safety and sustainable traceability, BWN reduces intermediate links and monitors the entire supply chain with full traceability and transparency. BWN is executing on a multi-year strategy that enables the transition to a fully vertically integrated manufacturer and supplier for all products in the line. All products will be certified authentic through a proprietary Phytoprint certification process. With a commitment to consistently delivering quality products while doing their part to make this a Better World, BWN is focused on adding value through improved customer safety, service and sustainable traceability. “We are very pleased to bring our products to meet the growing needs of the global market for natural, fully transparent and sustainable products. I have carefully chosen my talented team to reflect the values of BWN and we are eager to demonstrate our commitment to quality, service and transparency. My team and I are grateful for the opportunity to contribute to making this a better world through our practices, processes and people.” Affirmed Mr. Zhigang (Laurent) Zheng, founder and general manager of Better World Naturals.

In 2016, Huabao began building a new production facility, Jiangxi H&K Food Technology Development Co., Ltd. Based in Yingtan, Jiangxi Province with a registered capital of ￥300M. The products involve flavor products and food ingredients. Jiangxi H&K is the first facility built to support the Better World Naturals business. These new facilities reflect Huabao’s commitment to establishing world class manufacturing facilities which utilize innovative technologies and energy efficient processes to produce safe, high quality natural products while reducing resource consumption and improving environmental protection. Jiangxi H&K is completing BRC certification this year.

More about Huabao Flavours & Fragrances Co., Ltd: Huabao has been strategically focused on developing, manufacturing and selling high quality and innovative flavors and ingredients to the diverse industries that respond to evolving consumer needs. Huabao, founded in 1996, has been listed on the Shenzhen Stock Exchange since 2018 (Huabao Flavours & Fragrances, Stock Code: 300741). Its parent company is listed on Hong Kong Exchanges. Huabao has experienced strong performance with the following reported at end of 2018 : net assets of ￥9100M, revenue of ￥2170M and ROE of 14.57%. Huabao operates in 4 countries, 14 cities and has 30 subsidiaries by the end of 2018. More can be learned on our website:
www.hbflavors.com

More about Better World Naturals: Better World Naturals was created as a subsidiary of Huabao Flavours in 2018 with headquarters in Shanghai. BWN is executing on a multi-year strategy that will enables the transition into a vertically integrated manufacturer and supplier of natural and specialty ingredients. The founder and general manager of Better World Naturals is Zhigang (Laurent) Zheng. He said: the mission of Better World Naturals is to contribute to making this a better world through our practices, processes and people. More can be learned on our website:
www.betterworldnaturals.com

More about Jiangxi H&K Food Technology Development Co., Ltd.: Jiangxi H&K began building a new production facility in 2016, based in Yingtan, Jiangxi Province. The first facility completed in Jiangxi H&K can support the Better World Naturals business.

Additional information about the products, services and story of Better World Naturals can be found at:
www.betterworldnaturals.com.

General Manager Laurent Zheng

June13, 2019