Group 1 - The company, Yaxiang Co., Ltd. (301220.SZ), has established relationships with major international flavor and fragrance companies, including International Flavors & Fragrances (IFF), Givaudan, and Firmenich [1] - The company is currently collaborating with BASF in the supply chain segment [1]

Group 1 - The company has international clients including IFF, Givaudan, and Firmenich, which are well-known companies in the flavor and fragrance industry [2] - The company has a business cooperation relationship with BASF in the supply chain segment [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失 承擔任何責任。 HUABAO INTERNATIONAL HOLDINGS LIMITED 華 寶 國 際 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：00336） 附屬公司調整募投項目投資計劃進度 調整募投項目投資計劃進度 - 華寶科創中心項目及華寶數位化項目 華寶股份於2026年3月20日召開第三屆董事會第二十四次會議，審議通過了「關 於調整募投項目投資計劃進度的議案」，同意調整華寶科創中心項目及華寶數位 化項目的投資計劃進度。本議案不涉及募集資金用途變更，無需提交華寶股份股 東會審議。 華寶科創中心項目 華寶科創中心項目募集資金承諾投資總額人民幣44,997.42萬元，所需土地性質應 由工業用地變更為研發用地，自有地塊土地性質變更及相關土地收儲工作已完 成，用地手續辦理及後續事宜持續推進中，其中，自有土地補充合同及合併後的 整體土地合同，目前正由政府相關部門擬定中，土地合同的擬定與簽署進 ...

Core Viewpoint - The company, Huabao International, is a leading player in the flavor and fragrance industry in China and has strong global competitiveness, with a diversified product range and a significant overseas expansion strategy [1] Group 1: Business Performance - Huabao International has maintained its position as the top company in the flavor and fragrance industry in China for 20 consecutive years, with products including tobacco flavors, food flavors, daily-use fragrances, and composite seasonings [1] - The company's production capacity at its Indonesian base has reached 3,000 tons annually, and it has successfully supplied new reconstituted tobacco leaves to international clients [1] - The domestic tobacco flavor business is experiencing a contraction due to the "self-controllable" policy from China National Tobacco, but this has been anticipated, allowing the company to focus on overseas production and sales [1] Group 2: Growth Opportunities - The overseas sales of tobacco raw materials, particularly for products like beads and HNB (Heated Not Burned) sheets, are expected to significantly increase in the first half of 2025, driving overall revenue growth [1] - The company is reducing its reliance on major clients by expanding its non-tobacco business, with its subsidiary Huabao Co. projected to turn profitable by 2025 [1] - The company has a robust cash flow, with financial liquid assets exceeding 6 billion yuan in the first half of 2025, and operating cash flows projected at 800 million, 1 billion, and 700 million yuan for 2022-2024 [2] Group 3: Strategic Initiatives - The company announced a stock incentive plan in 2025, granting 144 mid-to-senior executives nearly 2 million stock options at a price of 3.95 HKD per share, reflecting confidence in future growth [2] - The company is strategically positioned to benefit from potential policy changes in the domestic HNB market, as it is a long-term R&D partner of China National Tobacco [2] - Huabao International's investment in Boyuan Group provides an indirect entry into the HNB brand market with its NUSO brand, which has been validated in several overseas markets [2] Group 4: Financial Projections - The company is expected to achieve net profits of -280 million, 510 million, and 810 million yuan for the years 2025-2027, with corresponding P/E ratios of 23 and 14 for 2026-2027 [3] - The company is anticipated to enter a new growth phase, moving away from reliance on a single client, with short-term growth in bead business and long-term potential in sheet business as the global HNB market expands [3]

Core Viewpoint - Huabao International (00336) has seen a significant stock price increase, rising nearly 7% to HKD 4.44, driven by positive profit forecasts from its subsidiary Huabao Co. [1] Financial Performance - Huabao Co. expects an annual net profit attributable to shareholders of HKD 65 million to HKD 95 million, marking a turnaround from previous losses [1] - The anticipated losses for 2024 are primarily due to goodwill impairment related to the flavoring segment for tobacco [1] - There is no significant risk of further goodwill impairment for Huabao Co. in 2025 [1] Business Outlook - Guolian Minsheng Securities reports that Huabao International, as a leading player in the flavor and fragrance industry, is gradually reducing its dependency on a single customer and is expected to enter a new growth phase [1] - The short-term growth of the capsule business and the long-term potential of the film business are highlighted, with expectations for continued growth aligned with the global expansion of the HNB (Heat-not-Burn) market [1] - The new food ingredient factory in Indonesia is set to cover the Southeast Asian market, while the domestic Yifang company has returned to profitability, indicating potential for sustained high growth [1] - If domestic HNB regulations are relaxed and the proprietary brand NUSO develops, it could represent a significant growth opportunity [1]

Core Viewpoint - Huabao International (00336) has seen a significant stock price increase, rising nearly 7% to HKD 4.44, with a trading volume of HKD 32.39 million, following the announcement of its subsidiary Huabao Co. (300741) expecting a net profit of HKD 65-95 million, marking a turnaround from losses [1] Group 1: Company Performance - Huabao Co. anticipates a net profit of HKD 65-95 million for the fiscal year, indicating a return to profitability year-on-year [1] - The expected losses for 2024 are primarily attributed to goodwill impairment losses related to the flavoring and tobacco flavor asset group [1] - There is no significant risk of further goodwill impairment for Huabao Co. in 2025 [1] Group 2: Market Position and Growth Potential - Guolian Minsheng Securities reports that Huabao International, as a leader in the flavor and fragrance industry, is gradually reducing its dependency on a single customer and is expected to enter a 2.0 phase of growth [1] - The short-term growth of the bead business and the long-term elasticity of the film business are anticipated to continue growing with the global expansion of the HNB (Heat-not-Burn) market [1] - The commissioning of the food ingredient factory in Indonesia is set to cover the Southeast Asian market, while the domestic Yifang company has returned to profitability, suggesting a potential for sustained high growth [1] - If domestic HNB regulations are relaxed and the proprietary brand NUSO develops, it could represent a potential incremental growth opportunity [1]

Investment Rating - The report gives a "Buy" rating for the company, Huabao International, with a current price of 4.12 HKD [2][11]. Core Views - Huabao International has maintained its position as the leading flavor and fragrance company in China for 20 consecutive years and is the only Chinese company in the global top ten [7][9]. - The company is undergoing a significant business transformation, moving away from reliance on domestic tobacco flavoring due to regulatory pressures, while expanding its overseas operations, particularly in Indonesia [7][9]. - The year 2026 is projected to be a turning point for the company, with expectations of revenue and profit growth driven by overseas sales of new products like beads and heat-not-burn (HNB) materials [9][11]. - The company has launched an employee stock option plan, indicating management's confidence in future growth, with a strong cash flow position providing a safety margin [9][11]. Summary by Sections Financial Forecast and Indicators - Revenue is projected to grow from 3,373 million RMB in 2024 to 5,491 million RMB in 2027, with a significant increase of 28.1% in 2026 [1]. - The net profit attributable to shareholders is expected to turn positive in 2026, reaching 512 million RMB, and further increasing to 808 million RMB in 2027 [1]. - The earnings per share (EPS) is forecasted to improve from -0.12 in 2024 to 0.25 in 2027 [1]. Business Overview - Huabao International's product range includes tobacco flavors, food flavors, daily-use fragrances, and composite seasonings, with a strong focus on innovation and technology [7][14]. - The company has established a significant production capacity in Indonesia, with a focus on HNB products, which are expected to drive future growth [19][27]. - The company is diversifying its business model to reduce dependence on major clients, with a focus on expanding its non-tobacco business [9][11]. Strategic Transformation - The company is actively adjusting its strategy in response to regulatory changes in the domestic market, reducing reliance on major tobacco clients and increasing its international footprint [27][36]. - Huabao International has made significant capital investments in overseas production facilities, particularly in Indonesia, to support its growth strategy [19][38]. - The company has a strong cash position and has historically maintained a high dividend payout ratio, which supports its investment appeal [9][11].

Investment Rating - The report gives a "Buy" rating for Huabao International (0336.HK) [2][11] Core Views - Huabao International has maintained its position as the leading flavor and fragrance company in China for 20 consecutive years and is the only Chinese company to enter the global top ten [7][9] - The company is undergoing a significant business transformation, moving away from reliance on domestic tobacco flavoring due to regulatory pressures, while expanding its overseas operations, particularly in Indonesia [7][9] - The year 2026 is projected to be a turning point for the company, with expectations of revenue and profit growth driven by overseas sales of new products like beads and heat-not-burn (HNB) materials [9][11] Financial Forecasts and Indicators - Revenue projections for Huabao International are as follows: - 2024: 3,373 million RMB (up 2.0%) - 2025: 3,395 million RMB (up 0.6%) - 2026: 4,348 million RMB (up 28.1%) - 2027: 5,491 million RMB (up 26.3%) [1] - Net profit forecasts indicate a recovery: - 2024: -386 million RMB - 2025: -281 million RMB - 2026: 512 million RMB - 2027: 808 million RMB [1] - Earnings per share (EPS) is expected to improve from -0.12 in 2024 to 0.25 in 2027 [1] Business Model and Strategy - Huabao International is diversifying its business model, reducing dependence on a single customer base, and entering a new growth phase [9][11] - The company is focusing on high-growth segments such as beads and HNB products, which are expected to see significant demand as the global market for these products expands [9][11] - The establishment of production facilities in Indonesia is a strategic move to enhance its international presence and meet regional market demands [19][37] Management and Governance - The company has implemented a stock incentive plan for its management, indicating confidence in future growth and aligning management interests with shareholder value [9][40] - Huabao International's ownership structure is concentrated, with the controlling shareholder holding 68% of the shares, which supports strategic decision-making [20][23] Market Position and Competitive Advantage - Huabao International is recognized as a "full-service" player in the global tobacco supply chain, leveraging its comprehensive capabilities in flavoring and raw materials [14][16] - The company has a strong technological foundation and has established itself as a leader in the production of HNB materials, positioning it well for future market opportunities [9][53]

Summary of Key Points from the Conference Call Company Overview - The conference call pertains to 百润股份 (Bairun Co., Ltd.), focusing on its business outlook and performance metrics for 2026. Industry Insights - The overall sentiment for the industry is optimistic, with a positive trend expected in the beverage sector, particularly in flavored spirits and pre-mixed drinks. Core Business Segments 1. **Flavor and Fragrance**: Expected to maintain stable growth [1] 2. **Pre-mixed Drinks**: Identified as a key growth area with a target of double-digit growth [2] 3. **Spirits**: Aiming for revenue between 300 million to 500 million, with favorable industry trends [2] Channel Strategy 1. **Pre-mixed Drinks**: - Strengthening existing advantageous channels - Expanding into snack retail channels, which are experiencing rapid growth - Advancing digital integrated channel management [2] 2. **Spirits**: - Introducing products that align with pre-mixed drink terminals - Considering the 125ml small bottle of 崃州22 as a core flagship product [2] Financial Metrics - Advertising expense ratio for pre-mixed drinks is projected at 12-13% - Spirits advertising expense ratio is expected to exceed 20%, with significant initial investment during the incubation period, anticipated to decrease in the long term [2] Market Penetration - Currently, the company has direct control over more than 400,000 terminals and reaches over 200,000 terminals through distributors [2] Digital Transformation - Digital initiatives were piloted in Guangdong in 2025, with plans for large-scale rollout in the current year [2]

Financing Dynamics - The outdoor brand "Outopia" has completed a Series B financing round, attracting significant investment from leading capital, validating its positioning in trail running and international team value, and providing ample funds for product development, market expansion, and global layout [1][3] - The AI perfume design platform Osmo has announced a new financing round of $70 million, which will be used to expand its team and continue developing its core AI models [5] Acquisitions & Sales - DSM-Firmenich is set to sell its animal nutrition business to private equity firm CVC, with the animal nutrition and health department expected to generate approximately €3.5 billion in annual sales by 2025 [6][8] - The iconic French children's clothing brand JACADI Paris has been acquired by Blue Water Venture Partners, LLC, with expectations of significant expansion potential in the North American market [9][11] - Playboy (PLBY) has signed a final agreement to sell 50% of its Chinese business to United Trademark Group (UTG) for a total of $122 million, which will allow UTG to fully manage Playboy's operations in China, Hong Kong, and Macau [13] Financial Reports - SKP is projected to see a 15% increase in revenue by 2025, with its flagship Beijing SKP achieving a 6.8% growth to reach ¥23.5 billion [16] - Kering Group reported a 9% decline in revenue for Q4 2025, amounting to €3.91 billion, primarily due to the underperformance of its core brand Gucci and restructuring costs [19] Personnel Dynamics - LVMH has appointed Véronique Courtois as the new CEO of its beauty division and Antoine Arnault has joined the executive committee, indicating a shift towards a more family-centric governance structure [21] - Hugo Boss has appointed Dietmar Knoess as the new Senior Vice President of Global Human Resources, tasked with organizational restructuring amid performance challenges [24] - Saks Global has appointed Cheryl Han as the Chief Marketing and Digital Officer, aiming to enhance digital integration across its brands [27]