*Adjusted net profit represents profit for the year or period beforeloss on fair value changes of convertible and redeemable preferred shares andthe expenses incurred in connection with the Global Offering.

HONG KONG, CHINA - Media OutReach - 28 November 2018 - Natural Food International Holding Limited ("Natural FoodInternational", together with its subsidiaries, the "Group"; stock code: 1837), a natural health foodcompany in China, announces the details of its plan to list on the Main Boardof The Stock Exchange for Hong Kong Limited ("SEHK") today. [1]

Atotal of 421,000,000shares will be offered under the Global Offering, of which 378,900,000 Shares, or 90%,subject to re-allocation, will be offered by way ofthe InternationalOffering; whilethe remaining 10%, or 42,100,000 Shares, subject tore-allocation, will be offered under the Hong KongPublic Offering.The Offer Price per Offer Share is expected to be notless than HK$1.62 and not more than HK$2.10. The Public Offer willcommence at 09:00 am on 29 November 2018 (Thursday) and close at12:00 noon on 4December 2018 (Tuesday). The allotment result isexpected to be announced on 11 December 2018 (Tuesday). Dealings in Natural FoodInternational's shareson the Main Board of the SEHK are expected to commence on 12 December 2018 (Wednesday).

Assuming an Offer Price of HK$1.86 per Offer Share (being the mid-point of the Offer Pricerange), the aggregated net proceeds from the Share Offer, after deductingrelated expenses, will be approximately HK$710.1 million. Natural FoodInternational intendsto use these net proceeds for the following purposes: 1) approximately 35%to enhance its integrated distribution platform and optimize its channel mix;2) approximately 60% for the construction of its new Nansha Manufacturing Facilityin Guangzhou, Guangdong Province and the procurement of machinery and equipmentfor this planned processing facility; 3) approximately 5% for its workingcapital and general corporate purposes.

China International Capital CorporationHong Kong SecuritiesLimited and CMBC International Capital Limited are the Joint Sponsors. ChinaInternational Capital Corporation Hong Kong Securities Limited and CMBCSecurities Company Limited are the Joint Global Coordinators. ChinaInternational Capital Corporation Hong Kong Securities Limited, CMBC SecuritiesCompany Limited, Haitong International Securities Company Limited and BluestoneSecurities (HK) Co., Limited are the Joint Bookrunners and Joint Lead Managers.

BusinessOverview

According toFrost & Sullivan, the Group is the second largest natural health foodcompany in China in terms of retail sales value in 2017, with a market share of1.7%. Accordingto Frost & SullivanSurvey, the Group's "Wugu Mofang" (五谷磨房) brand is the mostwidely-recognized natural health food brand in China. It ranked first in termsof top-of-mind brand awareness and customer satisfaction among all the naturalhealth food brands in China and also ranked as the most frequently consumedbrand among all the natural health food products in China.

The retail sales value of China'snatural health food industryhas grown from RMB68.0 billion in 2013 to RMB103.1 billion in 2017,representing a CAGR of11.0%, and is expected to reach RMB183.9 billion in 2022, representing a CAGRof 12.3% from 2017, according toFrost and Sullivan.

The Groupcrafted its products from its roots of traditional Chinese dietetic culture andits belief in "Dietary Nourishment" (藥食同源), infused with modern nutrition science and foodprocessing technologies. It offers a broad selection of natural health foodproducts that caters a wide spectrum of consumers of different age groups andneeds. The extensive diversified product portfolio includes approximately 90types of products, including products made from naturally sourced ingredientsand processed with scientifically tested formula, as well as products appealingto specific consumer groups, such as products appealing to females, teenagersand the elderly.

The Group hasbuilt a comprehensive and integrated distribution platform with "New Retail"characteristics comprising both online and offline channels, which enhances thevisibility of the brand and makes its products more accessible to potentialconsumers. As of June 30,2018, the Group's integrateddistribution platform consisted of (i) an offline network of 3,916concessionary counters in supermarkets in 464 cities across China , and (ii)online channels, including (a) e-commerce platforms, such as Tmall, JD.com andVipshop.com, and (b) social media platform, namely its WeChat member store.

The Group's robusttechnology infrastructure and stringent quality control measures drive itsoperational excellence, ensure product quality and support the rapid andsuccessful expansion of its sales network across China. In addition, the Grouphas adopted a set of stringent quality control practices throughout the supplychain and across all of its sales channels to ensure the products it selladhere to national food safety standards. The Group's stringent quality controlpractices cover the sourcing of raw materials, production, packaging, inventorystorage as well as cleanliness of concessionary counters and employee conduct.

CompetitiveStrengths

1.     Leader in the rapidly growing natural health foodindustry in China with a highly recognizable brand

A highly recognizable brand allows the Group to enjoy strong consumerloyalty, leading to a higher proportion of repeat purchases as well as loweringits costs to attract new consumers. Its leading market position,well-recognized brand image, and attractive product offerings, together withthe active use of online and offline distribution channels, best position it tocapitalize on the strong expected growth opportunities ahead in the naturalhealth food industry in China.

2.     Diversified product portfolio supported byinnovative product development capabilities

During theTrack Record Period, the Group had successfully launched a total of 68 newproducts and improved 53 existing products. The Group stays true to its beliefin "Dietary Nourishment" (藥食同源)and offers a broad selection of natural health food products that caters abroad spectrum of demands from consumers of different age groups and healthconcerns. The extensive diversified product portfolio includes approximately 90types of products. As of the Latest Practicable Date, it had an in-house staffof eight employees in its product research and development department dedicatedto product development and technology advancement. Half of its research anddevelopment personnel holds master's degrees or above.

3.     Well-established integrated distribution platformcomprised of online and offline channels

The Groupoperates a comprehensive and integrated distribution platform comprised ofonline and offline channels with "New Retail" characteristics, which couldenhance the visibility of the brand and make its products more accessible topotential consumers. A high degree of integration helps to maximize theperformance of its business. Accordingly, the Group has made extensive effortsto ensure the mutually reinforcing nature of the various sales networks withinits integrated sales platform to create synergies and increase incrementalsales.

4.     Excellent operational efficiency supported by itsstrong proprietary technology infrastructure

With 48technology professionals, the Group is dedicated to strengthening itstechnology capabilities, including big data analytics and mobile technologies.Its best-in-class technology and big data analytics capabilities driveoperational excellence and enhance value creation across its supply chain. TheGroup utilizes its proprietary ERP system to retrieve and analyze its operationaldata to aid faster decision-making and boost productivity and profitability.Also, the Group employs its propriety BI system to support its wide range ofbusiness decisions and increase its responsiveness to the latest marketdynamics.

5.     Strong ability to control food safety andingredients supply

The Grouptakes a holistic approach to qualitycontrol and implement stringent standards in all aspects of the business, fromsourcing of raw materials, production, packaging and inventory storage to cleanlinessof concessionary counters and employee conduct, to ensure the quality andsafety of its products and to be aligned with industry best practices. Also, the Group'slong-term suppliers have on average six years of relationship with it. Suchcooperation in turn promotes economies of scale and enables the Group to securesufficient and reliable supply of ingredients. To ensure freshness of theingredients, the Group source key ingredients around the world from theirplaces of origin.

6.     Visionary and experienced management team with afocus on human capital

Members ofthe senior management team on average have ten years of experience in the foodindustry, and the research and development head possesses extensive managerialexperience derived from his previous role at a multi-national corporation inthe consumer retail sector, Fortune 500 food and beverage company.

DEVELOPMENTSTRATEGIES

1.     Further enhance its integrated distributionplatform and optimize its channel mix

The Group will furtherexpand its online presence to strengthen its current market-leading position,including working with a broad range of large-scale e-commerce platforms suchas Tmall and JD.com,and further increase the resources devoted to its self-operated WeChat memberstore.

The Group plans to upgrade approximately3,000 existing concessionary counters to a new type of integrated health foodstores and add approximately 2,200 new concessionary counters in the next threeyears. Also, to explore the "on-the-go" consumption channels, such as smallgrocery stores and/or convenience stores, in prime locations in first tiercities with high visibility and customer traffic. The Group expects a nationalcoverage in or around 2021 with approximately 25,000 "on-the-go" consumptionsales points.

2.    Continue to expand anddiversify its productportfolio while upholding itscore values of "Naturally Made, No Additives Needed"

The Group expects to continuouslydevelop new products that cater to different consumption scenarios and are ofhigher consumption frequencies, such as meal replacements and casual food.Leveraging its big data analytics and technology infrastructure,the Group alsointends tocontinue to develop products that cater to a broad spectrum of dietary andhealth demands from consumers of different age groups, in particular, the youngconsumers group.

3.    Further strengthen its brandequity to increase market share

The Group intends to further promote its brand through a combinationof traditional media advertising initiatives as well as promotional campaignsthrough new media channels and platforms, to increase the profile and value ofits brand. Utilize online and social media outlets such as Weibo and WeChat tolaunch a variety of initiatives and Engage educational campaigns and celebrityendorsements to promote the Group's natural, healthy lifestyle and its commitment to food safetyand quality. In addition, the Group would further expand its offlinedistribution network and engage interactive themed marketing promotioncampaigns that appeal to its target customers.

4.    Further enhance operationalefficiency and optimize technology infrastructure

The Group intends to devote substantialresources to developing and integrating the latest technologies throughout itstechnology platform and internal practices to improve raw material procurement,centralized production, consumer interaction and general operational efficiency.It also intends to leverage its big data analytics capability to understandconsumers from different age groups and consumption perspectives, assess theirparticular needs and behaviors, and offer them targeted and customizedproducts.

5.    Recruit, train andincentivize talent

Natural Food International plans to continue to provide its employees with structuredtraining that is designed to provide them with a clear career advancementtrack. The Group also intends to adopt an equity incentive schemelinked to itsperformance in order to further motivate its employees. Management believes such scheme supplements the existing employeecompensation plans and bonuses, as it helps to attract skilled and experiencedpersonnel and motivates employees to strive for the growth of the Company.

6.    Pursue appropriate strategicacquisitions and business opportunities

The Group intends to expand upstream andacquire suppliers of key raw materials to further strengthen its value chain, and ensure anadequate, stable supply of thekey raw materials. The Group also believes suitable acquisitions will allow it to gain experience andexpertise in developing new products, gather market intelligence on the latestconsumer trends and provide itwith the appropriate platform to expand into different product categories inthe future.

About the Group

NaturalFood International Holding Limited is the second largest natural health food company in Chinaas measured by retail sales value in 2017, according to Frost & Sullivan.Its brand "Wugu Mofang"(五谷磨房) brandis the most widely-recognizednatural health food brand in Chinaand ranked firstin terms of top-of-mind brand awareness and customer satisfaction among all thenatural health food brands in China and as the most frequently consumed brandamong all the natural health food products in China, according to Frost &Sullivan Survey. Infused with modern nutrition science and food processingtechnologies, the extensive diversified product portfolio includesapproximately 90 types of products.

As of June 30, 2018, theGroup has an offline network of 3,916 concessionary counters, and distributesits products through major e-commerce platforms, such as Tmall, JD.com andVipshop.com, as well as WeChat member store.