Huabao Carried out Special Training on Strengthening Regulated Operation

The Office of the Board of Directors of Huabao Flavours & Fragrances Co.，Ltd. (“Huabao” or the “Company”) organized colleagues from all departments to carry out Special Training on Strengthening Regulated Operation on the morning of July 23, for the purpose of further enhancing the regulated operation level of the Company, preventing risks and promoting corporate compliance and stable operation. The lecturers for this training session were HOU Xiaoqin, Vice President and Secretary of the Board of Directors of the Company, and HUANG Xingxing, the securities affairs representative of the Company. The training content mainly consisted of two parts: requirements for independence of listed companies and requirements for information disclosure regulations.

The first part emphasized the enhancement of independence of listed companies. The listed company shall ensure the integrity of its assets, personnel independence, financial independence, institutional independence and business independence, guard against various forms of fund embezzlement and horizontal competition, and promote the legal, fair and effective development of related party transactions.

The second part specified the requirements of information disclosure regulations. When the Company carries out transaction and non-transaction matters, it shall pay full attention to the timely implementation of the review and disclosure procedures, attach more importance to insider information to strictly prevent insider trading, grasp the scale of external information communication to ensure fair information disclosure, and pay attention to the timely and effective transmission of internal information to improve the corporate governance system.

By citing relevant clauses of laws, regulations, business rules and a large number of typical cases, this training session has enhanced our colleagues' understanding of the regulated operation of listed companies. The participants combined with their own jobs to put forward questions and carry out heated discussions, thus having significantly good on-site effects.

As a listed company, it will require the participation and efforts of every department and every colleague to strengthen corporate governance and improve the regulated operation level. We need to raise awareness of the importance of corporate governance, enhance the awareness of red lines of corporate governance, and attach equal importance to the regulated operation and development.