About HUABAO INTL Company

Huabao International Holdings Co., Ltd. and its subsidiaries (the “Group”) has a flavor division, a tobacco raw materials division and a condiment division. It is mainly engaged in R&D, production and sales of flavors, tobacco ingredients, fragrance ingredients, and condiments, and makes diversified investments around the core industrial chain. It is an industrial holding group based on the taste consumer goods market. The Group is a leader in the fragrance industry in China. It owns the A-share listing platform Huabao Co., Ltd. and a series of famous fragrance brands such as “Heedeng,” “Huabao,” “Peacock,” “Tianhong,” “Huafang,” “Aohuada,” and “Amber.” The Group has international product development and production capabilities. It has production bases in Shanghai, Guangdong, Jiangsu, Yunnan, Jiangxi, Fujian, Hong Kong, Indonesia and Botswana in Africa, R&D centers in Holzminden, Germany, and Singapore; national enterprise technology centers in Shanghai; and R&D departments in Guangdong, Yunnan and Fujian. The members of the Group hold a number of leading positions in relevant industry organizations, including Vice Chairman of the China Food Additives and Ingredients Association, Vice Chairman of the China Flavors, Fragrances and Cosmetics Industry Association, Vice Chairman of the China Bakery and Sugar Products Industry Association, and Chairman of the Shanghai Food Additives and Ingredients Industry Association. The Group is also one of the leaders in the field of tobacco raw materials in China, and the production process and product quality have reached leading domestic and international advanced levels. Guangdong Jinye, a subsidiary of the Group, is one of the R&D bases of the China Tobacco Administration for recycled tobacco leaves. In November 2012, the second phase of the Guangdong Jinye Reclaimed Tobacco Leaf Production Line was completed and put into operation, and it passed the inspection by the China Tobacco Administration. The production process was rated by the China Tobacco Administration as the highest level of recycled tobacco leaf technology under the Domestic Paper Law, and the main technical indicators have also reached the international advanced level. In 2016, the “Tobacco Industry Reclaimed Tobacco Leaf Technology Research Key Laboratory” jointly established by Guangdong Jinye and Guangdong Tobacco was certified by the China Tobacco Administration and became the only key laboratory in the field of remanufactured tobacco leaves. In terms of new materials, Shanghai Huabao Biotechnology Co., Ltd. is developing very rapidly in the field of new cigarette materials represented by cigarette capsules, core wires, etc. Jiangxi Huabao Xinhui Technology Co., Ltd., which was newly established in 2017, became a production base for the tobacco capsule business. In 2022, the Group completed construction of a plant in Indonesia. The plant will mainly produce heat-unburnable remanufactured tobacco leaves to seize opportunities for global development of heated-unburnable cigarettes. The Group is also one of the leading companies in the field of fragrance ingredients in China. Its main products include a variety of natural flavors and synthetic fragrances. Its production capacity and sales account for an important market share in the industry, and the production process and product quality have reached leading levels at home and abroad. The Group acquired Jiangxi Fragrance Sea in 2017 and completed the optimization of production processes and procedures in 2021, which played a positive role in the establishment and layout of the Group's fragrance ingredients sector. The Group will use its leading position in the industry and strong scientific research capabilities to build a leading production base for fragrance ingredients in Asia and the world. In 2018, through the acquisition of Jiahao, the Group entered the compound condiment market with huge room for growth, further improved and optimized the Group's business structure, and created more revenue streams for the company. At present, the Group has successfully completed the coverage of the entire industry chain integrating “raw materials, processing and consumption”, and its competitive strength in the taste consumer goods market has been further strengthened. The Group will continue to combine our industrial advantages and integration capabilities with social capital through multiple capital platforms, multiple cooperation channels, and various investment cooperation models to create greater value for shareholders.