Huabao Flavors & Fragrances Releases 2020 Annual Report
2021/03/20
On Mar 19, Huabao Flavors & Fragrances released 2020 annual report. Under the leadership of the board of directors and the mission: “living a green, nutritious and healthy life”, the company focused on main business, developed new growth engines and optimized business structure, keeping the operation stable. Despite the pandemic and complicated domestic and international environment, the company delivered strong performance(in RMB): 2.94 billion revenue, 1.389 billion profit, 1.18 billion net profit attributable to shareholders, 1.92 basic EPS , 15.64% ROE(0.14% YOY increase). The fragrance business had a YOY increase of 20.23% thanks to stronger new product sales and new customer acquisition in North China. The company spent 154 million RMB on R&D in 2020, with a 7.33% R&D to revenue ratio. It has all kinds of R&D equipment, strengthening its leading position in flavors & fragrances industry in China. It recruited many top R&D talents to provide innovative tech service for customers. In 2020, the company started to build a digital platform, upgrading OA and budget management system, to enhance operating capability for higher quality and efficiency.
In 2020, the company improved brand image and governance structure, winning several awards: 2019 Top 100 Light Industry Enterprises(China National Light Industry Council), Top 100 Enterprises in China(Top 100 Chinese Public Companies Forum), 22nd Golden Bull Award for Public Companies—2019 Best Investment Value Award, 2020 Golden Quality Award—Corporate Governance Award, 11th Tianma Award for Investor Relations of Chinese Listed Companies—The Best Board of Directors and The Best Company for Investor Relations.
The board of directors proposed the following profit sharing plan: based on total number of shares, each shareholder will receive 16 RMB cash dividend(including tax) for each 10 shares and cash dividend will total 985 million RMB(including tax). This profit sharing plan will need to be approved at shareholder meeting.
In 2021, guided by the vision: flavor your life, the company will continue to develop green, nutritious and healthy products to meet consumers’ need. It will launch tech innovation center project for food and tobacco flavor and new tobacco materials research. The company plans to build a R&D platform covering basic research, flavoring research, analysis & testing, process research, application research and prospective study and improve R&D and global competitiveness through a modern R&D innovation park. In 2021, the company will accelerate strategy implementation, strengthening top level design, making appropriate institutional arrangement, improving basic management and enhancing main business, to become a global leading player in flavor & fragrance industry.