ALD Group LimitedCompany Introduction

www.aldgroup.com/en

Oct. 2020

Disclaimer: The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material

information concerning ALD Group Limited (the“Company”). The Company makes no representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any

information contained herein. In addition, this presentation material may contains information that ALD considers confidential. DISCLOSURE TO 3RD PARTY WITHOUT ALD'S APPROVAL IS PROHIBITED!

CONTENTS

03

02

01 Overview

Advantages

Solutions

Who Are We

04 Planning

Milestone O-Chart R&D Capacity

Vision / Goals

Innovation Lean Production Services

ID&CMF ComplianceFlavors&FillingProject Products Quality

Turnover

Mission / Cases Values / Update

OVERVIEWALD Group Limited

Who Are We

CAGR

50%+

Employees

2500+

Technic Talents

120+

Key Patents

400+

ALD Group Limited has been a leading ODM/OEM manufacturer & service supplier, specializing in Electronic

Atomization Technology Research and Applications since 2009.

• A Chinese National High-Tech Enterprise

• Top 100 Export & Innovation Enterprises in Baoan

• A-Class Credit Rating Certificate by SZ Tax Bureau

• A Chinese Export Pilot Index Sample Enterprise

• CEC industry Association Vice President

• ISO9001 Certified

• GMP Certified

• IPMS Certified

• SQP & WCA Certified

• OHSAS18001 Certified

ALD Foundedin Shenzhen, China

ISO9001 certified.

Good Manufacturing Practice

(GMP) certified

Postdoctoral Workstation

established.

Recognized as CHINA

NATIONAL

HIGH-TECH ENTERPRISE.

New dust-free

workshop put in use.

Fundamental

Research Institute

Medical

R&D Center

IPMS/SQP/WCA

Certified.

IPD R&D

System

CNAS Labs

ISO13485

Milestone

11+Years of Glory

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SILMO

Launched

O-Chart

Eric Ding

President

Business Units

HNB BU

Bio Tech BU

Domestic BU

Vapor BU

Brand BU

R&D Center

R&D

Institute

Product

Engineering

Project

Quality Control

PMO

Supply Chain

Production

Factory #2

Factory #1

Automatic Control

Operation

HR&Admin

Finance

System Mgmt

Planning

Board

GM Office

Jinliang Li

General Manager

Quan Zuo

Vice GM

Terry Long

CTO

40＋ 800+㎡ 400＋ 10%＋ 25＋

Research

Fields

In-house

ResearcherR&D

Labs

Technical

Patents

R&D

Investment

In-house

Labs

R&D

Experience

10＋Yeas 60＋

R&D Strength

Ceramic

MaterialSmart

Application

Heating

Technology

Electronic

TechnologyInhalation

SafetyRecycle

Materials

Material

Safety

Aerosol

Research

Mechanical

Innovation

Flavors&

PruificaitonIP

Management

Bio-

medicalHydro-

dynamics

Material

Technology Main

Research

Fields

Manufacturing Capacity

✓ 16910sqm

✓ 40 Lines

✓ 9.6M pod/M

✓ 15000sqm

✓ 25 Lines

✓ 8.6M pod/M

✓ 6345sqm

✓ 22 Lines

✓ 5.1M pod/M

Factroy

#1

Factroy

#2

Factroy

#3

Intending

Turnover

2017 2018 2019 2020e 2021e 20252022e 2023e 2024e

68.79%

CAGR1475

2565

147 220330

450

650

950

Million

USD

147Million USD

2019 Annual

Revenue

1475Million

USD

2025 Target

* DATA FOR REFERENCE PURPOSES ONLY, IT MAY NOT BE ACCURATE

ADVANTAGES

ALD Group Limited

Core Advantages

✓ Exclusive Atomization Technology

✓ IPD R&D system

✓ In-house Fundamental Research

Institute

✓ Modularized Product Platform

✓ Market-oriented

Leading R&D Innovation

Multiple Solution

Services

Lean Production & High

Quality Level

Advantages

✓ OEM/ODM/JDM Service

✓ Boarder Product Pipeline

✓ HNB/IMV/CBD/E-liquid Solutions

✓ Fiber/Cotton/Ceramic Coil

✓ TPD/FDA PMTA/HPHC Testing

✓ Leading in Automatic Production

✓ GMP Dust-Free Workshop

✓ ISO9001/14001 Management

✓ ISO13485 in Progress

✓ MES Syetem

Metal and polymer materials

Toxic and hazardous

substance testing

Electronic comprehensive lab Ceramic materials

3D printing and CMF lab

Organic chem lab

Inorganic chem lab

Comprehensive lab

Electronics lab

Material lab

CMM lab

CMF lab

Ceramic Analysis labBattery lab

Temperature test lab

Estimate achieve at Q2 2021

R&D Innovation

In-house LabsResearch Trends

HNB• Heating Material

• Central Heating Method

Medical Field• Intelligent Dose Control

• Inhalation Safety

• Application Expansion

Innovative Materials• Antibacterial Materials

CTO

Research

Center

In-house External

Product

Strategy

Mechanical

design

Electronic

engineeringID design

New Product

Development

ENDS HNB IMV

Project Mgt.

Lean Production

Creating Customer Value at Scale with Quality,

Traceability and Smart Control

• 2 GMP manufacturing sites up

• 25,000m2+ manufacturing center

• 2000+ skilled workers

• 60+ production lines

• 15M+ pieces per month

• Integrated eSOP, MES, eKanban, continuously

drive for automation.

ALD

Intelligent Manufacture

Traceability

Greater

Visibility

Automated

Processes

Flexibility

Scalability

Standardized

Processes

Product

RequestsDesign

Tooling

ManagementManufacturing Logistics

E-liquid

formula

CMF

Package

Finished Good

Assembly

Automation

Filling line Professional

Forwarder

Local Agent

After sale

Automation

Assembly Line

Tooling Customization

ID

Exclusive

Tooling

Engineer Team

One-Stop Solution Services

Adjustable airflow

Smart chip

Pre-heating

Adjustable power

Dose control

External

Tooling

Expertise

Your Idea, We Make It

Warranty

Services

Online support

Free Counseling

Local Technical

Support

SOLUTIONS

ALD Group Limited

Product Operation

Delivery Management

Technology planning and

technology development process

BU1 BU2 BU3 BU4

PMT

IPMT

PM R&D NPI DQE

PDT

LMT

TDT

Research Center

Project

management

Engineering

change

management

Material

certification

management

Quality

assurance

management

Cost control

management

Change

management

Performance

management

BUManufacturing

Center

Product development process

Concept

Phase

TR1/TR2

Development

phase

TR3

Validation

phase

TR4/TR5

Launch

CDCP ADCP

Seg

men

t users

Seg

men

t users

Req

uirem

ents

man

agem

ent p

rocess

Project

management

Engineering

change

management

Product strategic

planning process

Project Solutions

Integration Project Development SystemBU5

Product Solutions

Coil with

Cotton

Vape cartridge, Disposable, Open Pod

System, Close Pod System Open Pod System, Close Pod

System

Disposable, Open Pod System,

Close Pod System

ID&CMF Solutions

Design

Orientation

Import

Design

Conceptualization

Design

Visualization

Product

Design

Engineering

Industrial

Design

Systemization

Industrial

Design

Standardization

Under the organization of Product Department, there is a dedicated team of 10 ID designers who keep close eyes on latest market

trend and export ID on a regular basis, plus, a professional team of 5 CMF engineers who manage the CMF cross whole product line.

Flavor & Filling Solutions

• Oil Temperature Control

• Storage Temperature Control

• Storage Humidity Control

• Flavor Concentrate Formulation

• Local Filling Instruction

• FDA & TPD Compliance

• Product Testing Services

• Nicotine Level Testing

• GC MS Testing

• Chemical Analysis & Testing

Turnkey solutions for any flavor & filling method of the manufacturing process.

Flavors Production

• Both Small & Large Scale Production

• Product & Formula Creation

• PG/VG and VG/PG Custom Blends

• Reverse Flavor Engineering

• Flavor Refinement

• Marketing & Branding Assistance

Compliance & Testing Professional Mass Filling

Concept Phase

／CDCP

Approval

EVT DVT PVT ADCP

Planning

Product Design and Development

Process Design and Development

Product and Process

Validation

Mass Production

MP and Product

Launch

IPD PDT promote the development process, process feedback,

assessment and corrective actions

Plan and

confirm the

project

Product

design and

development

Product and

process

validation

Process

design and

development

Feedback, assessment

And corrective actions

Manufacturing Feasibility

AnalysisDFMEA

PFMEA/CP MSA/CPK

PFMEA/PPK/QCP

PPAP

Product Quality Assurant Plan

Quality Solutions

APQP Process

✓ ISO9001(Quality):2015

✓ ISO14001:2015(Environmental)

✓ OHSAS18001:2007(Health and safety)

✓ GMP implemented & certified.

✓ IPMS(Intellectual Property)

✓ WCA

✓ ISO13485(Medical Devices) - on

progress

Compliance Solutions

UL8139 since 2019

RoHs since 2010

CE since 2010

FCC since 2010

TPD-since 2015

REACH since 2010

PMTA since 2019

Compound CAS No.

1 Acetaldehyde 75-07-0

2 Acrolein 107-02-8

3 Crotonaldehyde 4170-30-3

4 Formaldehyde 50-00-0

5 Butyraldehyde 123-72-8

6 2,3-Pentanedione 600-14-6

7 2,3-Butanedione 431-03-8

8 Nicotine 54-11-5

9 NNK 64091-91-4

10 NNN 16543-55-8

11 Chromium (Cr) 7440-47-3

12 Cadmium (Cd) 7440-43-9

13 Lead (Pb) 7439-92-1

14 Nickel (Ni) 7440-02-0

15 Ethylene Glycol 107-21-1

16 Diethylene Glycol 111-46-6

17 N-butanol 71-36-3

18 Glycerol 56-81-5

19 Propylene glycol 57-55-6

Compound CAS No.

20 Menthol 89-78-1

21 Acrylonitrile 107-13-1

22 Benzene 71-43-2

23 Toluene 108-88-3

24 Methyl acetate 79-29-0

25 Ethyl acetate 141-78-6

26 Isoamyl acetate 123-92-2

27 Isobutyl acetate 110-19-0

28 Ethyl acetoacetate 141-97-9

29 Benzyl acetate 140-11-4

30 Glycidol 556-52-5

31 Propylene oxide 75-56-9

32 Propionic acid 79-09-4

33 Furfural 98-01-1

34 Benzaldehyde 100-52-7

35 Vanillin 121-33-5

36 Cinnamaldehyde 104-55-2

37 pH -

38 Aerosol -

Compound CAS No. Methods Instrument

1 Nicotine54-11-5

AFNOR XP D90-

300-3HPLC,GCMS

2 Formaldehyde 50-00-0

AFNOR XP D90-

300-3HPLC

3 Acetaldehyde 75-07-0

4 Acrolein 107-02-8

5 crotonaldehyde 4170-30-3

6 Propionaldehyde 123-38-6

7 isobutyraldehyde 78-84-2

8 Acetone 67-64-1

9 2-butanone 78-93-3

10 Chromium 7440-47-3

AFNOR XP D90-

300-3ICP-OES

11 Nickel 7440-02-0

12 Iron 7439-89-6

13 Aluminum 7429-90-5

14 Tin 7440-31-5

15 Lead 7439-92-1

16 Cadmium 7440-43-9

17 arsenic 7440-38-2

18 Antimony 7440-36-0

19 mercury 7439-97-6

20 Copper 7440-50-8

21 Diacetyl 431-03-8AFNOR XP D90-

300-2GCMS

22 Pentane 2,3 dione840-97-1

23 Ethylene Glycol 107-21-1 ALD METHOD GCMS

24 Diethylene Glycol 111-46-6

25 toluene 108-88-3

CORESTA

RECOMMENDED

METHOD NO.70

GCMS26 benzene 71-43-2

27 1.3-butadiene 106-99-0

28 isoprane 78-79-5

Main Safety Test List

PLANNINGALD Group Limited

Our Goals

1st Class Top 1

HNB & IMVElectronic Atomization

Industry

in in

IPOin

2021-2022

LISTING

Vision: To Be a World-Class Chinese Enterprise.

Success Stories

Our Mission: We Share, We Succeed

* All company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not

imply any affiliation with or endorsement by them. All specifications are subject to change without notice.

Strategic Update

Core Values: Integrity Pragmatism Study Innovation Persistence Excellence

Technical

Alliance

Supply-chain

Investment

• Joint Labs

• Research Team

• Experience Centre

• University-Enterprise

Cooperation

• Strategic Partner

• Co-operation

• Association

• Agency

Partnership

System

Local Support Capacity

Escalation

• E-liquid Supplier

• Ceramic Factory

• Mould Factory

• Overseas Factory

• Local Warehousing

• Local Logistics

• Local After-sales

• 33ar. Industry Park

• Smart Manufacturing

• Quality Center

• Testing Laboratories

THANKS

www.aldgroup.com/en