Best Food : VOLUNTARY ANNOUNCEMENT - ADDITIONAL INVESTMENT IN AN ASSOCIATE

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BEST FOOD HOLDING COMPANY LIMITED 百 福 控 股 有 限 公 司 *

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01488)

VOLUNTARY ANNOUNCEMENT ADDITIONAL INVESTMENT IN AN ASSOCIATE

This is a voluntary announcement made by Best Food Holding Company Limited (the ''Company'', together with its subsidiaries, the ''Group'') for the purpose of keeping the potential investors and shareholders of the Company informed of the latest business development of the Group.

CAPITAL INCREASE AGREEMENT

The board (the ''Board'') of directors (the ''Director(s)'') of the Company is pleased to announce that, on 2 March 2021, a fund with investment contributed by Shenzhen Country Garden Venture Capital Co., Ltd.（* 深圳市碧桂園創新投資有限公司）(''CGVCAP'') entered into a capital increase agreement (the ''Capital Increase Agreement'') with Guangzhou Yujian Xiaomian Catering Management Company Limited* (廣州遇見小面餐飲管理有限公司 )( ''Yujian Xiaomian'') and Yujian Xiaomian's existing shareholders (including Wonderful Dawn Holdings Limited* (奇昕控股有限公司) (''Wonderful Dawn''), a wholly-owned subsidiary of the Company), in relation to, among other things, capital injection by CGVCAP and additional capital contribution by Wonderful Dawn (the ''Additional Capital Contribution'') and certain other existing shareholders in Yujian Xiaomian.

As at the date of this announcement, the transactions contemplated under the Capital Increase Agreement have not been completed. Yujian Xiaomian is a company established under the laws of the People's Republic of China, which is accounted for as an associate of the Group and is held as to 19.5% by the Company as at the date of this announcement. Upon completion of the transactions under the Capital Increase Agreement, Yujian Xiaomian will continue to be accounted for as an associate of the Group, and will be held as to approximately 19.0% by the Company.

REASONS FOR AND BENEFITS OF THE ADDITIONAL CAPITAL CONTRIBUTION

Yujian Xiaomian was founded in Guangzhou in 2014 and it operates and manages chained restaurants focusing on Chongqing noodles with Sichuan and Chongqing flavor. In recent years, Yujian Xiaomian has continued to innovate and diversify its product mix. It strives to provide customers with whole-day consumption scenarios by means of diversified products sold at a highly elastic price range. Both regular chain stores and franchise stores are undergoing rapid development. Though the COVID-19 pandemic hit hard on the catering industry, Yujian Xiaomian maintained a strong growth in 2020, withits sales revenue and shop number increased two-fold as compared to 2019. At present, the valuation of Yujian Xiaomian has increased a lot as compared with the first round of investment committed by the Company in 2016.

Yujian Xiaomian joined force with CGVCAP, with a view to seek cooperation with a robotics company operated by Country Garden, as well as to develop the smart operation in the category of instant noodles. Besides digital development, the capital injection is intended for, among others, brand building, store expansion and supply chain upgrade.

The Directors consider that Yujian Xiaomian has the potential to assume the leading role in branded noodle sector in China, thus the Company decided to make additional capital contribution in Yujian Xiaomian under the Capital Increase Agreement with a view to maintain its shareholding percentage level of approximately 19% in Yujian Xiaomian. The Directors are also of the view that the terms and conditions of the Capital Increase Agreement are on normal commercial terms and are fair and reasonable and that the Additional Capital Contribution is in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As all of the applicable percentage ratios (as defined in Rule 14.07 of the Listing Rules) in respect of the Additional Capital Contribution are less than 5%, the Additional Capital Contribution and the transactions contemplated under the Capital Increase Agreement do not constitute notifiable transactions of the Company under Chapter 14 of the Listing Rules.

To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, as at the date of the Agreement, each of CGVCAP, Yujian Xiaomian and the other shareholders of Yujian Xiaomian were not connected persons of the Company. Accordingly, the transactions contemplated under the Capital Increase Agreement do not constitute connected transactions of the Company under Chapter 14A of the Listing Rules.

By Order of the Board

Best Food Holding Company Limited

(百福控股有限公司)

Zhao John Huan

Chairman

Hong Kong, 19 March 2021

As at the date of this announcement, the Board comprises three executive Directors, namely, Mr. Zhao John Huan, Mr. Wang Xiaolong and Mr. Jing Shen and three independent non-executive Directors, namely, Mr. Leung Kwai Kei, Mr. Heng Victor Ja Wei and Mr. Tsang Hin Man Terence.

*

For identification purpose only