To the Shareholders of Zhongyuan Bio-Technology Holdings, Limited.

• Date：2021-12-30

• By：Zhong Yuan Biotech

Dear Shareholders:

2021, as an unprecedented year for ZHONGYUAN Biotech, we have achieved the best substantial developments since the company was established in 2012 with our persistent endeavor to develop ZHONGYUAN into a sounder, stronger, and more professional cutting-edge biotechnology company of brain technology.

Do the right thing even when it’s hard.

Before 9 years, conceiving the beliefs that we could make a great and beautiful change in brain nerve health undertaking, we embarked on this difficult and correct entrepreneurial road from the perspective of specializing in scientific research. 

Taking a broader look at the world, three things are happening simultaneously in the field of brain science: Brain nerve mechanism is inherently and extremely complex and lacks plentiful and robust fundamental research; Patients with brain nerve diseases are extremely short of accurate and rapid diagnosis and intervention methods; There are more than 55 million people worldwide diagnosed as Alzheimer’s patients and the number continues to grow rapidly. Three things happening at the same time will make many practitioners shrink back from difficulties. However, in the context of the fact that social structure tends to age, brain nerve diseases tend to be more prevalent among youth groups, and this field has become one of the hardest problems waiting to be tackled in the medical community of this century, we, ZHONGYUAN, take the bull by the horns, and our journey of exploring the field of the brain science and nervous system has never stopped. We expect to bring early screening and prevention methods into the world such as specific drugs, medical apparatus, etc., like the flame of hope. Because of our original intentions and efforts remaining the same, ZHONGYUAN has gained more opportunities and favors both in the capital market and industrial development. 

“Do the right thing even when it’s hard” is what we've always understood and believed to be the path of success. A "right" decision will always lead to a channel of long-term growth and development of the company. We are proud of our R&D achievements, fast and steady growth of our product sales, as well as the positive feedback from our consumers this year, which in turn reinforces our belief.

On this occasion of preparing to start our IPO in NASDAQ, we particularly want to communicate our shared beliefs, with our investors/partners who have supported us along the way, that we are not only confident in the short-term financial performance of the company, but also more concerned about the long-term benefits.

One body with two wings and save up strength to start.

With solid core R&D achievements as the “body”, and raw material base and product sales as the “wings”, this mode of development leads us to construct our upper, middle, and lower industrial chains. Industries in an upper position focus on the promotion of Acer truncatum planting techniques and the development of a standardized planting base. Industries in a middle position mainly focus on the development of functional food and new drugs that are rich in nervonic acid, which can treat neurological diseases by utilizing the extraction technology of nervonic acid in Acer truncatum, as well as the development of third-class medical instruments such as brain disease diagnostic kits. Through the integration of industrial resources, the industrial chain cluster is created.

ZHONGYUAN Biotech has in-depth cooperation with many famous research institutions at home and abroad, such as the Chinese Academy of Sciences, National Health Commission of PRC, China Medical University, Beijing Tiantan Hospital, Xuanwu Hospital Capital Medical University, Chinese PLA General Hospital, The First Hospital of Tsinghua University, Medical Nutrition R&D Enterprise of America, etc. Based on the joint efforts of cooperative hospitals and organizations, the company has maintained leading superiority both at academic and R&D levels. Our achievements have been highly recognized by relevant national organizations. So far, we have obtained 10 patents for invention and 18 Copyrights authorized by China National Intellectual Property Administration. The fastest patent to be granted was related to Leukodystrophy, taking only 35 days, which has laid a solid foundation for us in the field of brain disease diagnostic kits and medicine!

Certainly, performance is vital for any company. Although ZHONGYUAN Biotech is an enterprise driven by R&D, we also pay attention to product marketing. We intend to be not only a valuable company but also a company that is worth its weight of money. Our industries in a lower position are established around the globalizing channel of nervonic acid series of products. At present, our domestic sales channel is steadily expanding, and we also export our products to the United States, Southeast Asia, Europe and other regions in the meanwhile, which lays a solid foundation for the globalization of our brand. Our performance this year will also increase significantly, and we are always on the way!

2022 marks not only the 10^th year of our businesses but also the starting year of our IPO. The accumulation of past 10 years plus our increasingly larger "ZHONGYUAN Alliance" has built a cutting-edge and professional company of brain technology. It is our firm conviction that we will realize our potentials through persistent efforts of our team in the stock market, stepping into the next era, the heyday of brain health technology. 

Thanks for the companion, support and understanding of our shareholders along this journey. we are more powerful with all of you on the way moving forward! With warm greetings and best wishes for Christmas and the New Year! May your Christmas be filled with special moments, warmth and peace, and wishing you all the joys of Christmas and a year of happiness.

Note: For more company news, please pay attention to www.zhybiotech.com. The website will continue to update information and news of ZHONGYUAN Biotech, please feel free to contact us if you have any problems.

ZhongYuan Biotechnology Holding Limited.

29 December 2021