Financial Performance - The company reported a total revenue of 615,880,000 RMB for the year 2021, with a cash dividend of 13.20 RMB per 10 shares distributed to all shareholders[9]. - The company's operating revenue for 2021 was CNY 1,941,375,258, a decrease of 7.31% compared to 2020[26]. - The net profit attributable to shareholders for 2021 was CNY 1,004,351,986, down 14.90% from the previous year[26]. - The net profit after deducting non-recurring gains and losses was CNY 849,887,990, reflecting a decline of 19.58% year-on-year[26]. - The company reported a quarterly revenue of CNY 577,728,588 in Q4 2021, with a net profit of CNY 250,786,011 for the same quarter[28]. - The food flavor business saw a revenue decline of 10.79%, while the food ingredient business grew by 19.88% and the daily flavor business increased by 11.13%[58]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2021, representing a year-over-year increase of 15%[185]. - Huabao Fragrance reported a revenue increase of 15% year-over-year, reaching 1.2 billion RMB in 2021[188]. - The company achieved a net profit of 250 million RMB, representing a growth of 20% compared to the previous year[188]. Market Expansion and Product Development - The company plans to expand its market presence and enhance product offerings, focusing on new product development and technological advancements[9]. - The company is expanding its food ingredient segment, focusing on natural products and functional ingredients for various applications including snacks and convenience foods[46]. - The company is actively developing new technologies and products, particularly in the natural extraction and flavoring sectors, to meet evolving consumer demands[44]. - The company aims to leverage technological innovation and product innovation to expand into new categories and overseas markets in 2022[128]. - The company is expanding its overseas market presence, particularly in Southeast Asia and Eastern Europe, leveraging its technical advantages to localize classic products and enhance its international footprint[133]. - Huabao Fragrance plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[188]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[185]. Research and Development - The company has established a technology innovation center and a research and development center in Singapore to support its innovation efforts[129]. - R&D investment amounted to ¥152,207,318 in 2021, representing 7.84% of operating revenue, an increase from 7.33% in 2020[96]. - The number of R&D personnel increased to 233 in 2021, up by 10.43% from 211 in 2020, with R&D personnel accounting for 23.90% of the total workforce[96]. - The company is enhancing its technological innovation capabilities by establishing a comprehensive research platform, including basic research and application studies in flavors and natural extracts[130]. - The food flavor segment is focusing on developing high-value plant extracts and innovative products using core technologies such as emulsification and fermentation, aiming for specialized product development in various application fields[131]. Operational Efficiency and Cost Management - The company has successfully reduced operational costs by 8% through efficiency improvements in the supply chain[185]. - The company is focused on enhancing operational efficiency through digital transformation and integrating its subsidiaries into a unified management system[117]. - The company has implemented measures to localize suppliers to reduce reliance on imported raw materials, thereby mitigating cost impacts from international supply chain disruptions[145]. Governance and Compliance - The company has a governance structure that complies with relevant laws and regulations, enhancing risk prevention capabilities and operational transparency[152]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring autonomous business capabilities[162]. - The company has established independent internal management structures, with no undue influence from controlling shareholders on the board or management[166]. - The company has established a robust internal control system to ensure compliance with laws and regulations, enhancing operational transparency[166]. Future Outlook and Strategic Initiatives - The company has projected a revenue growth of 10% for the next fiscal year, aiming for 1.32 billion RMB in total revenue[185]. - Future guidance indicates a projected revenue growth of 18% for 2022, driven by new product launches and market expansion[188]. - The company aims to build a "green, nutritious, and healthy" industrial ecosystem through investments and acquisitions, seeking high-quality targets that align with its production and market strategies[134]. - The company is committed to timely adjustments of project implementation plans based on changes in policies, markets, and technologies to ensure positive outcomes from its fundraising projects[144]. Risk Management - The management discussed potential risks and corresponding mitigation strategies in the future outlook section of the report[9]. - The company faces risks from macroeconomic fluctuations that could impact market demand across various sectors, and it plans to adapt its product structure to mitigate these risks[138]. - The ongoing COVID-19 pandemic poses risks to the company's operations, with measures in place to monitor its impact on financial performance and ensure employee safety[146]. - The company has a significant goodwill value of RMB 1,194.55 million, which poses a risk of impairment if future economic conditions deteriorate[139]. Shareholder Engagement - The annual shareholders' meeting had an investor participation rate of 87.50% on April 9, 2021, and the first extraordinary shareholders' meeting had a participation rate of 83.57% on June 28, 2021[169]. - The company is committed to maintaining transparency and effective communication with its stakeholders through regular updates and reports[177].

华宝香精股份有限公司 2022 年第一季度报告全文 证券代码：300741 证券简称：华宝股份 公告编号：2022-033 华宝香精股份有限公司 2022 年第一季度报告 本公司及除董事林嘉宇先生外的董事会全体成员保证信息披露的内容真实、准确、完 整，没有虚假记载、误导性陈述或重大遗漏。 董事林嘉宇先生因被执行指定居所监视居住无法亲自出席会议并审阅 2022 年第一季 度报告，基于谨慎考虑投弃权票。 重要内容提示: 1.董事会、监事会及除林嘉宇先生外的董事、监事、高级管理人员保证季度报告的真实、准确、完整，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 董事林嘉宇先生因被执行指定居所监视居住无法亲自出席会议并审阅 2022 年第一季度报告，基于谨慎考 虑投弃权票，请投资者特别关注。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的 真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 本报告期比上年同期增 | --- | - ...

Financial Performance - The company reported a total revenue of 615,880,000 RMB for the year 2021, with a cash dividend of 13.20 RMB per 10 shares distributed to all shareholders[12]. - The company's operating revenue for 2021 was CNY 1,941,375,258, a decrease of 7.31% compared to CNY 2,094,459,854 in 2020[29]. - The net profit attributable to shareholders for 2021 was CNY 1,004,351,986, down 14.90% from CNY 1,180,204,657 in 2020[29]. - The net profit after deducting non-recurring gains and losses was CNY 849,887,990, a decline of 19.58% compared to CNY 1,056,761,980 in 2020[29]. - The basic earnings per share for 2021 was CNY 1.63, down 15.10% from CNY 1.92 in 2020[29]. - The total assets at the end of 2021 were CNY 8,392,050,769, an increase of 0.50% from CNY 8,349,999,362 at the end of 2020[29]. - The net assets attributable to shareholders at the end of 2021 were CNY 7,707,268,109, a slight decrease of 0.20% from CNY 7,722,651,979 at the end of 2020[29]. - The cash flow from operating activities for 2021 was CNY 1,248,836,725, an increase of 14.72% compared to CNY 1,088,595,232 in 2020[29]. - The company reported a quarterly revenue of CNY 577,728,588 in Q4 2021, which was the highest among the four quarters[31]. - The company received government subsidies amounting to CNY 100,832,523 in 2021, down from CNY 146,207,802 in 2020[34]. - The company’s domestic revenue was CNY 1,927,520,995, which is 99.29% of total revenue, reflecting a decrease of 7.36% from the previous year[86]. - The company’s sales volume decreased by 17.32% to 10,625.93 tons in 2021, compared to 12,852.60 tons in 2020[89]. - The total sales amount from the top five customers was CNY 887,634,962, accounting for 45.72% of total annual sales[94]. - The total procurement amount from the top five suppliers was CNY 138,498,142, representing 26.85% of total annual procurement[94]. Business Operations and Strategy - The company has identified the fragrance industry as a growth sector, driven by the expansion of downstream industries such as food and daily chemicals[41]. - The company has established itself as a leading player in the Chinese flavor industry since its inception in 1996, with a strong focus on "green, nutritious, and healthy" products[44]. - The company operates a fully integrated supply chain with extraction centers in Guangdong, Yunnan, and Botswana, and production bases in multiple regions including Hong Kong and Germany[44]. - The company has a significant market presence with well-known brands such as "Huabao," "Peacock," and "Xideng," and holds leadership positions in various industry associations[44]. - The company’s food flavor segment includes products widely used in dairy, beverages, and snacks, with a strong emphasis on technological advantages in tobacco flavors[48]. - The company is expanding its food ingredient segment, focusing on natural products and functional ingredients for various applications including snacks and convenience foods[49]. - The company has a robust procurement model, with centralized management for subsidiaries with sales exceeding 100 million yuan, ensuring efficient supply chain operations[55]. - The company is actively involved in R&D, with overseas research centers and a national-level technology center in Shanghai, driving innovation in flavor technology[44]. - The company has established a technology innovation strategy, with a focus on core technology breakthroughs and product development, enhancing its competitive edge in the flavor and food ingredient business[74]. - The company has made significant adjustments in its organizational structure, business model, channel structure, and product structure, leading to improved operational stability and profitability[75]. - The company is focused on enhancing product value through technological advancements to improve gross margins and safeguard profitability[155]. Research and Development - The company is actively researching flavors for new tobacco products, focusing on key component separation, safety studies, and sensory evaluation methods[61]. - The company invested in domestic companies to enhance its food ingredient business, aiming for synergy in technology development and product innovation[64]. - The company is developing natural plant extracts and new food formulations, including β-carotene and turmeric, while also focusing on the electronic cigarette industry[66]. - The company is enhancing its technological innovation capabilities by establishing a comprehensive research platform, including basic research and application studies in flavors and natural extracts[140]. - The number of R&D personnel increased to 233 in 2021, up by 10.43% from 211 in 2020, with a higher proportion of personnel holding bachelor's and master's degrees[99]. - R&D investment in 2021 amounted to ¥152,207,318, representing 7.84% of operating revenue, an increase from 7.33% in 2020[99]. Governance and Management - The company has implemented a modern corporate governance structure for its subsidiaries, ensuring effective management and strategic alignment across its operations[54]. - The company maintains independent financial operations, with a complete financial accounting system and separate bank accounts, ensuring no shared accounts with controlling shareholders[176]. - The company has established independent management structures that operate without interference from controlling shareholders[177]. - The company has a clear governance structure in compliance with relevant laws and regulations, ensuring operational independence[177]. - The board of directors and management team have remained stable, with no significant changes in shareholding reported during the period[182][184]. - The company has a diverse board with members holding various professional qualifications, including CPA and tax advisor certifications[189]. - The company is committed to maintaining a strong governance structure with a diverse and qualified board of directors[193]. Market Trends and Future Outlook - The company aims to leverage technological innovation and product innovation to expand into new categories and overseas markets in 2022[138]. - The company plans to enhance its research capabilities and overall strength through seven key initiatives, focusing on lean production and digital transformation[139]. - The company’s vision is to become a global leader in the flavor industry, driven by consumer demand insights and overall solutions[138]. - The company is expanding its overseas market presence, particularly in Southeast Asia and Eastern Europe, by localizing classic products and leveraging its technological advantages[143]. - The company aims to build a "green, nutritious, and healthy" industrial ecosystem through investments and acquisitions, enhancing its product competitiveness and expanding its market opportunities[144]. Risks and Challenges - The company faces risks from macroeconomic fluctuations that could impact market demand across various sectors, and it plans to adjust its product structure accordingly[148]. - The company has a significant goodwill value of RMB 1.19455 billion, which poses a risk of impairment if future economic conditions deteriorate[149]. - The ongoing COVID-19 pandemic poses risks to the company's operations, with a commitment to adhere to national prevention measures while ensuring business continuity[156]. - Raw material prices for the company's fragrance products have experienced significant volatility due to supply-demand imbalances and inflation, necessitating dynamic tracking and inventory optimization strategies[155]. Investment and Financial Management - The total investment amount for the reporting period reached ¥8,226,121,093, a significant increase of 424.73% compared to ¥1,567,678,306 in the same period last year[111]. - The company has not reported any significant changes in the measurement attributes of its major assets during the reporting period[110]. - The company has not engaged in any significant equity investments during the reporting period[111]. - The company has utilized CNY 7,276.05 million of raised funds to replace pre-invested self-raised funds and paid issuance expenses[126]. - The company continues to manage unused raised funds in a dedicated account for future investment projects[126]. - The company has adjusted the investment amount for the "Hua Bao Science and Innovation Center and Supporting Facilities Project" due to changes in project scope and implementation methods[126].

Financial Performance - The company's revenue for Q3 2021 was CNY 446,968,275, a decrease of 11.87% compared to the same period last year[4]. - Net profit attributable to shareholders was CNY 223,793,407, down 17.57% year-on-year[4]. - The net profit excluding non-recurring gains and losses was CNY 201,029,702, reflecting a decline of 19.78% compared to the previous year[4]. - The basic earnings per share decreased by 18.18% to CNY 0.36[4]. - Total operating revenue for Q3 2021 was CNY 1,363,646,670, a decrease of 5.5% compared to CNY 1,442,842,489 in Q3 2020[30]. - Net profit attributable to the parent company was CNY 753,565,975, down 7.8% from CNY 817,686,794 in the same period last year[36]. - The company's total assets decreased to CNY 8,031,124,276 from CNY 8,349,999,362, reflecting a decline of 3.8%[28]. - The company's long-term equity investments increased to CNY 268,797,426 from CNY 61,296,434 year-over-year[21]. - The company's cash and cash equivalents as of September 30, 2021, were CNY 2,005,201,613, a decrease from CNY 4,809,415,566 at the end of 2020[21]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 8,031,124,276, a decrease of 3.82% from the end of the previous year[6]. - The total current assets decreased to CNY 6,077,742,775 from CNY 6,612,514,185 year-over-year[21]. - Non-current assets increased to CNY 1,953,381,501, up 12.4% from CNY 1,737,485,177[28]. - Current liabilities decreased to CNY 383,700,291, down 19.5% from CNY 476,710,349[28]. - The total liabilities decreased to CNY 411,170,070 from CNY 496,880,733, a reduction of 17.3%[28]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 13,998[12]. - The largest shareholder, Huafeng International Investment Holdings (China) Co., Ltd., holds 81.10% of the shares, totaling 499,500,000 shares[14]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three holding over 87%[14]. - The total number of restricted shares at the beginning of the period was 500,002,850, with 500,000 shares released during the period[18]. - The company has no preferred shareholders as of the reporting date[18]. Cash Flow - Cash flow from operating activities for the year-to-date was CNY 814,118,717, an increase of 1.05% compared to the previous year[4]. - Operating cash inflow for the current period was CNY 1,898,940,383, slightly down from CNY 1,903,451,817 in the previous period, representing a decrease of 0.3%[39]. - Net cash flow from operating activities was CNY 814,118,717, an increase from CNY 805,622,360 in the previous period, reflecting a growth of 1.5%[39]. - Cash inflow from investment activities totaled CNY 4,231,165,304, compared to CNY 4,260,798,216 in the previous period, indicating a decrease of 0.7%[41]. - Net cash flow from investment activities was -CNY 1,243,689,630, a significant decline from CNY 1,526,185,491 in the previous period[41]. - Cash outflow from financing activities was CNY 1,001,541,533, down from CNY 1,236,220,359 in the previous period, showing a decrease of 19%[41]. - The net increase in cash and cash equivalents for the current period was -CNY 1,434,174,061, contrasting with an increase of CNY 1,119,214,873 in the previous period[41]. - The ending balance of cash and cash equivalents was CNY 1,961,354,296, down from CNY 3,113,999,660 in the previous period, a decrease of 37%[41]. Operating Costs and Expenses - Total operating costs increased to CNY 621,608,413, up 7.4% from CNY 578,778,450 in the previous year[30]. - Research and development expenses for the period were CNY 100,015,648, slightly down from CNY 102,221,111 in the previous year[33]. - Payments for goods and services amounted to CNY 457,720,100, compared to CNY 430,022,259 in the previous period, indicating an increase of 6.4%[39]. - Payments to employees increased to CNY 186,463,431 from CNY 144,880,454 in the previous period, representing a rise of 28.7%[39]. Other Financial Metrics - The weighted average return on equity was 3.06%, down from 3.78% in the same period last year[6]. - Other comprehensive income after tax was CNY -7,642,381, an improvement from CNY -13,179,445 in the same period last year[36]. - The company reported a significant increase in trading financial assets, up 424.73% to CNY 298,867,000 due to increased investments in structured bank deposits[8]. - Long-term equity investments rose by 338.50% to CNY 26,880,000, attributed to increased external equity investments[11]. - The company received government subsidies amounting to CNY 102,806,132 during the reporting period[7]. - The company has not disclosed any new strategies or product developments in this report[23].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 916,678,395, a decrease of 2.03% compared to the same period last year[21]. - The net profit attributable to shareholders was CNY 529,772,568, reflecting a decline of 2.82% year-on-year[21]. - The net profit after deducting non-recurring gains and losses was CNY 424,647,419, down 9.57% from the previous year[21]. - The basic earnings per share decreased by 3.37% to CNY 0.86[21]. - The total assets at the end of the reporting period were CNY 7,807,710,958, a decrease of 6.49% from the end of the previous year[21]. - The net assets attributable to shareholders decreased by 6.00% to CNY 7,259,312,713[21]. - The net cash flow from operating activities was CNY 510,102,908, an increase of 0.47% compared to the same period last year[21]. - The weighted average return on equity was 6.92%, down from 7.54% in the previous year[21]. - The company achieved operating revenue of 916.68 million yuan, a decrease of 2.03% compared to the same period last year[45]. - The net profit attributable to shareholders was 529.77 million yuan, down 2.82% year-on-year, with a basic earnings per share of 0.86 yuan, a decline of 3.37%[45]. - The food flavor business saw a revenue decline of 4.83%, while the food ingredient business grew by 28.53% and the daily flavor business increased by 11.56%[45]. Investment and Fund Management - The total investment amount for the reporting period was CNY 2,776,151,976, representing a significant increase of 442.22% compared to the previous year's investment of CNY 512,000,000[70]. - The total amount of raised funds was CNY 231,184,210, with CNY 873,570 invested during the reporting period and a cumulative investment of CNY 77,777,810[75]. - The cumulative amount of raised funds that have been repurposed reached CNY 62,845,080, accounting for 27.18% of the total raised funds[75]. - As of June 30, 2021, the company had a remaining balance of CNY 1,710,106,129.34 in unutilized raised funds, with CNY 90,106,129.34 in a special account and CNY 1,620,000,000 in cash management[78]. - The company reported a fair value change gain of CNY 30,712,928 for its investments during the reporting period[74]. - The company has not made any significant equity investments during the reporting period[71]. - The company has not engaged in any significant non-equity investments during the reporting period[72]. - The company has not reported any overdue amounts in its entrusted financial management, reflecting effective risk management practices[87]. Research and Development - The company emphasizes innovation and technology integration to enhance its product offerings and maintain its leading position in the flavor industry[28]. - The company has a total of 173 patents, including 118 invention patents, enhancing its technological capabilities[56]. - The company is actively researching flavors for heated non-combustion tobacco products, focusing on safety and sensory evaluation methods[46]. - The company is developing a range of electronic cigarette oils and has begun initial sales of these products[49]. - The company adjusted its fundraising project to establish a technology innovation center, enhancing its R&D capabilities and international competitiveness[50]. - The company has committed to investing 50 million yuan in R&D for new technologies in flavor and fragrance[125]. Operational Strategy - The company focuses on the research, production, and sales of flavoring agents and food ingredients, with major products including edible flavors and daily-use flavors, serving clients like Mondelez and Pepsi[28]. - The production model is based on small batch production to meet diverse customer needs, with a combination of planned production and sales-driven production[33]. - The company employs a direct sales model for most of its products, adapting to customer needs through competitive bidding and negotiation[34]. - The company maintains a certain level of raw material inventory to ensure timely fulfillment of sales orders while managing production based on sales forecasts[35]. - The company aims to leverage consumption upgrade opportunities and expand into new product and business markets in the second half of the year[53]. - The company plans to continue using the remaining fundraising for its investment projects, ensuring alignment with strategic goals[81]. Corporate Governance and Social Responsibility - The company has maintained a strong commitment to corporate governance, with no instances of non-compliance reported[132]. - The company actively engages in social responsibility initiatives, including participation in charity events and donations[115]. - The company emphasizes the protection of shareholder rights by adhering to legal regulations and improving internal control systems[111]. - The company is committed to creating a fair and respectful work environment, continuously improving employee working conditions[112]. - The company implements efficient and environmentally friendly production practices to optimize resource usage[114]. Market Position and Future Outlook - The company ranked first among the "Top Ten Enterprises in China's Flavor Industry" and was recognized as one of the "Top 100 Enterprises in China's Light Industry Technology"[50]. - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[4]. - The company anticipates a revenue growth forecast of 20% for the second half of 2021[125]. - The board of directors expressed confidence in the long-term growth prospects of the company, planning to hold shares for the foreseeable future[125]. - The company is focused on improving operational performance to mitigate the risks associated with goodwill impairment[94]. - The company is taking measures to ensure business continuity amid the ongoing uncertainties related to the COVID-19 pandemic[99].

Financial Performance - Revenue for Q1 2021 was CNY 467,110,062, representing a 4.92% increase compared to CNY 445,224,013 in the same period last year[10] - Net profit attributable to shareholders was CNY 273,838,242, a 1.91% increase from CNY 269,023,191 year-on-year[10] - Net profit excluding non-recurring gains and losses decreased by 7.81% to CNY 232,776,482 from CNY 252,808,351 in the previous year[10] - The company achieved operating revenue of 467.11 million yuan, an increase of 4.92% compared to the same period last year[30] - The net profit attributable to shareholders was 273.84 million yuan, up 1.91% year-on-year[30] - The net profit for the first quarter was CNY 281,409,483, compared to CNY 271,660,247 in the previous year, reflecting an increase of approximately 3%[94] Cash Flow and Assets - Net cash flow from operating activities increased by 21.68% to CNY 192,359,183 compared to CNY 158,412,508 in the same period last year[10] - The company's cash received from operating activities increased by 40.59% to 66.47 million yuan, primarily due to government subsidies and interest from deposits[29] - Cash flow from operating activities was ¥192,359,183, up from ¥158,081,136, indicating a growth of 21.3%[109] - Cash and cash equivalents were reported at CNY 4,722,673,902, a slight decrease from CNY 4,809,415,566 at the end of 2020, representing a decline of approximately 1.80%[73] - The company's total current assets reached CNY 6,758,189,836, compared to CNY 6,612,514,185 at the end of 2020, indicating an increase of about 2.21%[73] - The total assets at the end of the reporting period were CNY 8,511,406,662, up 1.93% from CNY 8,349,999,362 at the end of the previous year[10] Expenses and Liabilities - The total operating costs for the first quarter were CNY 187,431,964, up from CNY 149,055,710, indicating a rise of about 25.7%[91] - The company’s cash paid for various taxes increased by 56.40% to 163.31 million yuan, mainly due to higher VAT and income tax payments[29] - The total liabilities decreased to CNY 376,297,333 from CNY 496,880,733, showing a significant reduction of approximately 24.23%[79] Investments and R&D - The company has invested RMB 355.07 million in the current quarter, with a cumulative investment of RMB 77,259.31 million[55] - Research and development expenses for the quarter were CNY 29,271,755, compared to CNY 24,760,291 in the previous year, representing an increase of approximately 18%[91] - The company is committed to strengthening its research and development capabilities, with established national and overseas R&D centers to protect its core technologies[36] Market and Customer Dynamics - The total amount of purchases from the top five suppliers was 55.48 million yuan, representing 40.91% of total purchases, up from 28.10% in the previous year[30] - The total sales amount from the top five customers was 250.34 million yuan, accounting for 53.65% of total sales, slightly down from 56.42% in the previous year[31] - The company faces risks related to high customer concentration, with a significant portion of revenue derived from tobacco flavoring sales to provincial tobacco companies, which could impact operations if these customers experience adverse changes[37] Strategic Initiatives - The company plans to adapt to market demand fluctuations by enhancing product structure and expanding into new markets[34] - The company has adjusted its fundraising project plans, including the termination of the "Huabao Lhasa Healthy Food Project" and the establishment of the "Huabao Digital Transformation Project" to enhance operational efficiency[40] - The company plans to enhance customer relationships by improving product quality and service, while also expanding sales channels to reduce customer concentration risks[37] Risks and Challenges - The company has a goodwill impairment risk due to potential declines in sales gross margin, net margin, and sales growth rate, influenced by macroeconomic and regulatory changes[35] - The company faces risks of technology leakage due to reliance on confidentiality measures rather than patent protection[36] - The company is actively monitoring the impact of the COVID-19 pandemic on its operations and is implementing measures to ensure business continuity and employee safety[41]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year growth of 15%[14] - The net profit attributable to shareholders was RMB 200 million, an increase of 10% compared to the previous year[14] - The company's operating revenue for 2020 was CNY 2,094,459,854, a decrease of 4.16% compared to the previous year[20] - The net profit attributable to shareholders for 2020 was CNY 1,180,204,657, reflecting a decline of 4.45% year-over-year[20] - The net cash flow from operating activities decreased by 16.10% to CNY 1,088,595,232[20] - The total profit amounted to CNY 138,901.47 million, a decrease of 3.89% compared to the previous year[64] - The revenue from food flavoring decreased by 3.46%, while the revenue from food ingredients decreased by 28.72%[64] - The basic earnings per share were CNY 1.92, a decrease of 4.48% compared to the previous year[64] Dividend Distribution - The company plans to distribute a cash dividend of RMB 16 per 10 shares, totaling approximately RMB 98.5 million[5] - The cash dividend represents 83.49% of the net profit attributable to the company's ordinary shareholders, which is RMB 1,180,204,657 for 2020[152] - The total number of shares for the dividend distribution is 615,880,000 shares[149] - The cash dividend policy has been consistent with the company's articles of association and has not been adjusted during the reporting period[151] - The total cash dividend paid in 2019 was RMB 1,219,442,400, which accounted for 98.72% of the net profit for that year[152] Market Expansion and Product Development - User data showed an increase in active customers by 20%, reaching a total of 1.5 million users by the end of 2020[14] - The company has set a revenue growth target of 12% for 2021, aiming for a total revenue of approximately RMB 1.34 billion[14] - New product development efforts resulted in the launch of 5 innovative flavor products in 2020, contributing to 25% of total sales[14] - The company expanded its market presence by entering 3 new international markets, including Southeast Asia and Europe[14] - The company is focusing on new product development in areas such as areca nut, dairy, beverages, and new tobacco products, with several innovative products already in production[66] Research and Development - The company invested RMB 50 million in R&D for new technologies aimed at improving production efficiency[14] - The company has 169 patents, including 116 invention patents and 53 utility model patents, enhancing its technological level and industry influence[58] - Research and development (R&D) investment for 2020 was ¥153,620,187, making up 7.33% of the total operating revenue[88] - The number of R&D personnel increased to 211 in 2020, representing 22.23% of the total workforce[92] - The company developed a natural liquid flavoring that can replace synthetic preservatives, addressing market demand for healthier food options[90] Strategic Initiatives - A strategic acquisition of a local flavor company was completed, enhancing the company's product portfolio and market reach[14] - The company is leveraging its technological advantages in the tobacco flavoring sector to maintain its leading position in the industry[34] - The company aims to explore and develop more natural, healthy, and high-quality products in response to the rising consumer demand for quality and personalization[51] - The company has established a group integrated management model for its wholly-owned subsidiaries, ensuring effective operation through shared functions and line management[39] - The company will implement a digital transformation project to unify management of procurement, ordering, and customer data, supporting rapid expansion[128] Risk Management - The management highlighted potential risks including raw material price fluctuations and regulatory changes impacting the flavor industry[5] - The company faces risks from macroeconomic fluctuations that could impact market demand across various sectors, which it plans to mitigate by adjusting product structures[130] - The company emphasizes the protection of its core technologies and formulas through strict confidentiality measures to mitigate the risk of technology leakage[132] Corporate Governance and Compliance - The company has a structured profit distribution policy, ensuring compliance with regulations and considering the interests of all shareholders in its decision-making process[143] - The company has maintained a clear and transparent dividend distribution standard and process[149] - The company is focused on maintaining compliance with regulations and commitments to shareholders, including transparency in case of any non-compliance[160] Social Responsibility - The company donated a total of 550,000 RMB for poverty alleviation efforts in Tibet during 2020[198] - The company invested 15 million RMB in one project focused on industrial development for poverty alleviation[199] - The company has established a comprehensive environmental management system to enhance resource efficiency and reduce environmental impact[196]

Financial Performance - Operating revenue for the reporting period was CNY 507,193,557, down 2.74% year-on-year, with a year-to-date total of CNY 1,442,842,489, reflecting a decrease of 3.65%[10] - Net profit attributable to shareholders was CNY 273,658,410, an increase of 3.52% compared to the same period last year[10] - Basic earnings per share for the reporting period were CNY 0.44, representing a 2.33% increase year-on-year[10] - The total comprehensive income for the period was 261,767,254 CNY, compared to 281,160,059 CNY in the previous period, showing a decline of about 6.9%[81] - Net profit for the current period is CNY 834,849,219, down 1.8% from CNY 850,151,356 in the previous period[93] - Basic earnings per share for the current period is CNY 1.33, compared to CNY 1.35 in the previous period[97] Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,969,047,626, a decrease of 4.89% compared to the end of the previous year[10] - Current liabilities totaled CNY 414,906,488, down from CNY 491,022,129, indicating a decrease of approximately 15.5%[62] - The company's equity attributable to shareholders decreased to CNY 7,380,632,936 from CNY 7,772,240,105, a decline of about 5.0%[65] - Total liabilities reached CNY 538,611,883, which is an increase of CNY 44,767,575 compared to the previous period[126] - Total current assets decreased to ¥6,208,188,974 from ¥6,659,478,002, indicating a reduction of about 6.73% year-over-year[56] Cash Flow - The net cash flow from operating activities was CNY 297,672,762, down 18.42% compared to the same period last year[10] - Cash flow from operating activities generated a net amount of CNY 805,058,847, slightly up from CNY 802,288,161, showing a marginal increase of 0.96%[106] - Cash inflow from investment activities totaled CNY 4,260,798,216, significantly higher than CNY 2,228,535,614 in the previous period, representing an increase of approximately 91.5%[109] - Cash dividends paid decreased by 50.10% to ¥1,236,220,359 from ¥2,477,221,660 primarily due to cash dividend distribution in the current period[29] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,265[14] - The largest shareholder, Huafeng International Investment Holdings (China) Co., Ltd., held 81.10% of the shares[14] Government Support and Subsidies - The company received government subsidies amounting to CNY 115,230,105 during the reporting period[10] Compliance and Commitments - The company has committed to avoiding related party transactions with its subsidiaries unless necessary, ensuring compliance with relevant laws and regulations[42] - The company guarantees that no controlled enterprises will provide proprietary technology or business secrets to competitors[39] - The company will publicly disclose any failure to fulfill commitments and apologize to shareholders if obligations are not met[36] Changes in Accounting Standards - The company implemented new revenue and leasing standards starting January 1, 2020, affecting the classification of certain financial items[126] - The company reported a 100% decrease in advance receipts to ¥0 from ¥1,809,020 due to the new revenue recognition standards[26] - Contract liabilities increased to ¥3,547,285 due to the new revenue recognition standards[26] Investment Performance - The company reported a significant increase in investment income to 752,426 CNY from 2,369,411 CNY, highlighting improved investment performance[79] - The company experienced a 100% decrease in investment income to ¥49,820 from ¥10,617,908 due to losses from the disposal of trading financial assets[27]

Financial Performance - The company's operating revenue for the current period is ¥935,648,932, a decrease of 4.14% compared to ¥976,059,588 in the same period last year[32]. - The net profit attributable to shareholders for the current period is ¥546,087,738, down 3.98% from ¥568,703,094 in the previous year[32]. - The net profit after deducting non-recurring gains and losses is ¥470,488,380, reflecting a decrease of 4.77% from ¥494,066,326 year-on-year[32]. - The net cash flow from operating activities increased by 16.00% to ¥507,386,085, compared to ¥437,414,827 in the same period last year[32]. - Total assets at the end of the current period are ¥7,722,134,097, a decline of 7.84% from ¥8,378,706,551 at the end of the previous year[32]. - The net assets attributable to shareholders decreased by 8.32% to ¥7,125,757,620 from ¥7,772,240,105 at the end of the last year[32]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2020, representing a year-on-year growth of 15%[132]. - The company's net profit attributable to shareholders was CNY 546.09 million, down 3.98% year-on-year, with a basic earnings per share of CNY 0.89, a decrease of CNY 0.03[73]. Investments and Financial Assets - The company reported an investment amount of 512,000,000 CNY for the current period, representing a 129.30% increase compared to the previous year's investment of 223,287,486 CNY[85]. - The company has invested raised funds in several projects, including a food flavoring production base and a health food project, but there are risks of delays and underperformance in these investments[113]. - The company has committed to investing 100 million RMB in R&D for new technologies in fragrance production over the next two years[132]. - The company reported a net increase in cash and cash equivalents of CNY 466.09 million, a 128.33% increase compared to the previous year[78]. - The company's trading financial assets decreased by 48.39% year-on-year to 396.40 million yuan, primarily due to the redemption of bank financial products and structured deposits[61]. - The total amount of funds raised was 231,184.21 million CNY, with 254.99 million CNY invested during the reporting period[88]. Corporate Governance and Compliance - The board of directors and management confirm the accuracy and completeness of the financial report[4]. - The company has a commitment to maintaining transparency in its financial disclosures[29]. - The company has established a modern corporate governance structure for its subsidiaries, ensuring effective operation and decision-making[45]. - The company has maintained a strong commitment to corporate governance, ensuring compliance with all relevant regulations and standards[132]. - The company has committed to ensuring that no controlled entities will provide proprietary technology or business secrets to competitors[128]. Market and Industry Insights - The company operates in the flavor and food ingredient industry, providing solutions for various sectors including food, beverages, and daily chemicals[40]. - The domestic fragrance market size reached 44.9 billion yuan in 2019, with a compound annual growth rate of 8.42% from 2010 to 2019[55]. - The fragrance industry in China is characterized by low concentration, with over 1,000 companies, mostly small and medium-sized, indicating potential for industry consolidation[58]. - The company is actively seeking opportunities for mergers and acquisitions to achieve external growth and strengthen its core business[74]. Research and Development - The company has a strong R&D team with 192 technical personnel, including 72 perfumers, which supports its sustainable development[63]. - The company plans to strengthen R&D in areas such as HNB products and plant extracts, aiming for innovation-driven growth[74]. - The company’s R&D investment was CNY 62.94 million, a decrease of 19.69% compared to the previous year[76]. - New product development includes the launch of three innovative fragrance lines, expected to contribute an additional 200 million RMB in revenue by the end of 2020[132]. Social Responsibility and Community Engagement - The company donated a total of 103,000 RMB (approximately 10.3 thousand RMB) for poverty alleviation initiatives, including 100,000 RMB to the Lhasa Economic and Technological Development Zone[157]. - The company actively participates in local economic development by investing in a subsidiary in Tibet, supporting agriculture and food industry development, and creating job opportunities[155]. - The company has committed to a "precision poverty alleviation" strategy, combining industrial and educational support to enhance the employment capabilities of impoverished households[156]. Risks and Challenges - The company faces risks related to the confidentiality of core technologies and formulas, particularly in flavoring, which are difficult to protect through patents[111]. - The company's sales revenue is highly concentrated, primarily from edible flavoring sales to provincial tobacco companies, posing risks if these clients face operational challenges[112]. - The ongoing impact of the COVID-19 pandemic presents uncertainties for the company's operations, although production is currently normal[114]. Shareholder Information - The total number of shares is 615,880,000, with 81.19% being limited shares and 18.81% being unrestricted shares[167]. - The largest shareholder, Huafeng International Investment Holdings (China) Co., Ltd., holds 81.10% of the shares, totaling 499,500,000 shares[170]. - The company did not experience any changes in its controlling shareholder during the reporting period[177]. - The total number of common shareholders at the end of the reporting period was 27,005[170].

Financial Performance - Total revenue for Q1 2020 was CNY 445,224,013, representing a slight increase of 0.34% compared to the same period last year[10]. - Net profit attributable to shareholders decreased by 8.28% to CNY 269,023,191 from CNY 293,310,068 in the previous year[10]. - Net profit excluding non-recurring gains and losses increased by 6.80% to CNY 252,808,351[10]. - Basic and diluted earnings per share both decreased by 8.33% to CNY 0.44[10]. - The company reported a non-recurring loss of CNY 4,658 from the disposal of non-current assets[10]. - The company reported a significant increase in other receivables, which rose to ¥106,442,664 from ¥238,131,071, a decrease of approximately 55.32%[73]. - Total operating revenue for the current period was CNY 445,224,013, a slight increase from CNY 443,726,725 in the previous period, representing a growth of approximately 0.34%[77]. - Net profit for the current period was CNY 271,972,140, down from CNY 299,950,417 in the previous period, reflecting a decline of approximately 9.33%[80]. - The basic earnings per share for the current period was CNY 0.44, compared to CNY 0.48 in the previous period, indicating a decrease of about 8.33%[83]. - The total comprehensive income for the current period was CNY 278,924,336, slightly lower than CNY 288,815,636 in the previous period, reflecting a decrease of approximately 3.07%[83]. Cash Flow and Assets - Net cash flow from operating activities was CNY 158,412,508, up 2.53% from CNY 154,500,403[10]. - The company's cash flow from operating activities decreased by 48.78% to RMB 469.16 million, mainly due to a reduction in government subsidies and interest income[23]. - Cash and cash equivalents reached ¥4,990,144,970, compared to ¥4,728,703,283, reflecting a rise of approximately 5.53%[66]. - Total assets at the end of the reporting period were CNY 8,682,511,876, an increase of 3.63% from the end of the previous year[10]. - Current assets totaled ¥6,917,617,216, up from ¥6,659,478,002, indicating an increase of about 3.88%[66]. - Total liabilities decreased to ¥489,109,732 from ¥493,844,308, a reduction of about 1.49%[69]. - Total equity rose to ¥8,193,402,144 from ¥7,884,862,243, indicating an increase of approximately 3.95%[69]. - Cash and cash equivalents at the end of the period totaled 2,510,094,970, down from 5,553,380,155 in the previous period, a decrease of 54.8%[96]. - The total cash and cash equivalents at the end of the period is ¥1,561,341,607, compared to ¥3,889,338,820 in the previous period, reflecting a significant decrease[100]. Investment and Projects - The total amount of raised funds is 231,184.21 million RMB, with 130.41 million RMB invested in the current quarter[52]. - The investment progress for the Huabao Yingtan food flavor and food ingredient production base project is 9.58% as of December 31, 2023[52]. - The investment progress for the Huabao Lhasa health food project is 3.77% as of December 31, 2022[52]. - The investment progress for the Huabao Peacock food flavor and food technology R&D project is 0.11% as of December 31, 2022[52]. - The company has decided to postpone the expected usable status dates for several projects due to market demand changes and construction delays[52]. - The company has not experienced any significant changes in project feasibility as of the announcement date[55]. - The company has not utilized idle raised funds for temporary working capital[56]. Risk Management and Compliance - The company faces risks related to the confidentiality of core technologies and formulas, relying on strict confidentiality measures to protect proprietary knowledge[33]. - The company's sales revenue is highly concentrated, primarily from edible flavoring sales to provincial tobacco companies, posing risks if these clients face operational challenges[34]. - The company acknowledges the risk of increased fixed asset depreciation impacting operational performance following the expansion of its fixed asset scale[37]. - The company is committed to ensuring employee safety and compliance with national pandemic prevention requirements while maintaining stable operations[38]. - The company commits to avoiding related transactions with Huabao Fragrance and its subsidiaries, ensuring compliance with relevant laws and regulations[48]. - The company guarantees not to occupy or transfer funds from Huabao Fragrance and its subsidiaries in any manner[48]. Shareholder Relations and Governance - Huabao Fragrance reported a commitment to stabilize its stock price post-IPO, with specific measures to be implemented if the stock price meets certain conditions within three years[45]. - The company has a lock-up period for shares held by major shareholders, which will be extended by six months if the stock price falls below the IPO price for 20 consecutive trading days[42]. - The company is focused on maintaining its market position and ensuring that its controlled entities do not engage in competitive activities against Huabao Fragrance[45]. - The commitment to avoid conflicts of interest and competition will remain effective as long as the major shareholders control Huabao Fragrance[45]. - The company is actively monitoring its stock performance and will implement buyback strategies if necessary to stabilize the stock price[45]. - The company expresses confidence in the long-term development prospects of Huabao Fragrance and plans to hold its shares for the long term[48].