HMI Group subsidiary company Yunnan Hansu Biotechnology Co.,Ltd (hereinafter referred to as “Hansu”), ALD Group Limited(hereinafter referred to as “ALD”),Chen Jiamin and Zou Shulin the four parties agree to set up a joint venture company in Shenzhen. They aim to R&D and market of industrial hemp extracts nebulizer (tobacco oil) and its new innovative application in medical treatment (inhalation administration) on Feb 26, 2019.

Hansu takes its intangible assets (technologies & licenses) as a shareholder holding 35% shares, which proved Hansu leading position in the field of hemp extraction and application in China widely recognized.

ALD is a high-tech enterprise specialized in R&D, production, sales and service of health e-cigarette, e-cigarette pipe and e-cigarette Cigar. ALD equipped with a R&D team of more than 100 people has invested a large sum of money to set up its own research institute and high-end laboratory. ALD focuses on R&D of “Healthy and Safety E-Cigarette”.

Hansu is a high-tech enterprise established in accordance with the law in China specializing in the production of industrial hemp extracts. Hansu invested and built a domestic base of biological extraction and separation of industrial hemp in Kunming. It is an enormous GMP Standard factory CBD that can extract non-psychoactive components separating and excluding psychoactive components. Hansu is a rare factor all over the world that can extract geranil flavone A.

ALD has many years of experiences in the development and production of e-cigarettes, which is a leading enterprise of hemp appliances overseas. It has been continuously surpassing and innovating on the basis of its experience in the production, manufacturing, quality and technology of e-cigarettes Hansu made a great progress as the leading enterprise of industrial hemp extraction and application of focusing on R&D in the field of industrial hemp. They will work together to build industry-leading atomization technology platform, and the industrial hemp extract liquid atomization, medical suction to medicine, and other forms of product sales, the joint venture company will be the sole agent of the above products.

The partners are full of confidence in the relevant business and equity cooperation. The joint venture will be evaluated annually. ALD promises that in the next 2nd to 5th fiscal years, the company will achieve sales profit of no less than RMB 20 million, 30 million, 40 million and 55 million. Shareholders will take active measures to strive for the success of the IPO of the joint venture.

The joint venture is the first equity cooperation between atomizer and industrial hemp extraction enterprises in China, This cooperation fully indicates that the largest industrial hemp extractor in China hansu  has started to take the leading position in the industry and become the core position in the field of atomization.

The joint venture has played a direct role in promoting the development of hansu and its phase II project (Hempmon). ALD shipments continues to grow at a high rate, benefiting from surging demand due to factors such as legalization of industrial hemp worldwide. Hansu & Hempmon will successfully explore another market in the existing overseas market through supplying hemp extracts for the joint venture (medical market — API grade CBD).

Hansu has finished phased business in the two major directions of new tobacco – heating non-combustion and smoke bomb / oil.  In the future, Hansu will continue to strengthen its scientific research strength in key industries and technologies. It will build world-class innovative technologies factory, extracting health elements for life and promoting the development of industrial hemp in the field of health.