Happiness Biotech Announced Innovative Cultivation Technology of Lucidum

NANPING, China, May 13, 2020 /PRNewswire/ -- Happiness Biotech Group Limited (the "Company" or Nasdaq: HAPP), an innovative China-based nutraceutical and dietary supplements producer, announced today that the Company has successfully developed an innovative cultivation technology of lucidum, which enables the Company to reduce the cost of growing lucidum - one of the main raw materials of the Company's products, by over 30%.

The Company named this technology "Five Senses Cultivation". Compared to the traditional cultivation method, management believes the "Five Senses Cultivation" technology has following revolutionary breakthroughs:

1. The cultivation could be conducted in indoor facilities, instead of outdoor greenhouses;
2. The cultivation will be separated from the soil to become soilless;
3. Realization of stereoscopic-cultivation: multi-level cultivation at the same time in the same space;
4. Environmental friendly: stable qualities with no pesticide or heavy metal residue; and
5. Lucidum matures three times a year instead of once a year.

These five breakthroughs have technically enabled the industrialization of lucidum cultivation. After the industrialization, we estimate the annual output of lucidum will increase over 8 times in the same space and the cost of growing lucidum will decrease over 30%. Meanwhile, since the quality of lucidum will also improve as it will not contain pesticides or have heavy metal residue, the unit price of our lucidum products is expected to increase at least 15%.

There are also five advantages of the "Five Senses Cultivation" technology over the traditional cultivation method in terms of "Five Senses":

"Lucidum products have always been the main products of Happiness Biotech, accounting for more than 20% of our sales and the proportion has been increasing year by year. We have been committed to developing a more reliable and efficient lucidum cultivation technology for many years. 'Five Senses Cultivation' is the result of our laboratory's efforts over the years. We are very grateful to our R & D personnel for their outstanding contributions. The first batch of lucidum using 'Five Senses Cultivation' has been successfully cultivated and was proven to be in line with our standards. The quality of lucidum using 'Five Senses Cultivation' method is significantly better than the lucidum cultivated using the traditional cultivation method. Next, we will start to implement this technology on a large scale. With the adoption of 'Five Senses Cultivation', we are confident to further consolidate our leading position in China's lucidum market," said Mr. Xuezhu Wang, CEO of the Company.

About Happiness Biotech Group Limited

Headquartered in Nanping, China, Happiness Biotech Group Limited is an innovative China-based nutraceutical and dietary supplements producer focused on the research, development, manufacturing and marketing of a variety of products made from Chinese herbal extracts and other ingredients. The Company's goal is to provide high-quality products to our consumers. Over the past 14 years, the Company has established a product portfolio consisting of 32 CFDA registered "Blue-Cap" SKUs of nutraceutical and dietary supplements products. For more information, please visit: www.happ.org.cn.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China, the COVID-19 outbreak and its impact on our operations and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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SOURCE Happiness Biotech Group Limited