Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
This is the second Environmental, Social and Corporate Governance (ESG) Report released by Huabao Flavours &Fragrances Co., Ltd. The report discloses in detail the practices and performance of Huabao Flavours & FragrancesCo., Ltd. in the areas of environmental, social and corporate governance responsibilities in 2024. It aims to communicatee?ectively with various stakeholders and systematically respond to their expectations and requirements.
About This Report
For the convenience of presentation, in this report:
“Huabao Flavours & Fragrances Co., Ltd.” is referred to as Huabao Flavours & Fragrances”, “the Company” or “we”;"Huabao International Holdings Limited" is referred to as "Huabao International";"Yingtan Huabao Flavor Co., Ltd." is referred to as "Yingtan Huabao";"Guangzhou Huafang Tobacco Flavours Co., Ltd." is referred to as "Guangzhou Huafang";"Owada Fragrance (Guangzhou) Co., Ltd." is referred to as "Guangzhou Owada"；"Shanghai H&K Flavor Co., Ltd." is referred to as "H&K Flavor";"Jiangxi H&K Food Technology Development Co., Ltd." is referred to as "Jiangxi H&K";"Shanghai Yifang Agricultural Technology Co., Ltd." is referred to as "Shanghai Yifang" or "Yifang";"Jiangxi Yifang Agricultural Technology Co., Ltd." is referred to as "Jiangxi Yifang";"Yunnan Tianhong Fragrance Co., Ltd." is referred to as "Yunnan Tianhong";"Huabao Asia Pacic Pte. Ltd." is referred to as "Huabao Asia Pacic";"PT Huabao Food Technology Indonesia" is referred to as "PT Huabao Food""Xiamen Amber Daily Chemical Limited" is referred to as "Xiamen Amber"
You can view and download this report on the website of Huabao Flavours & Fragrances Co., Ltd.(https://www.hbavor.com), the website of Shenzhen Stock Exchange (http://www.szse.cn) and China Securities Information Network (http://www.cninfo.com.cn).
If you have any comments or suggestions on the contents of this report or the Company's environmental, social andcorporate governance performance, please feel free to contact us by phone (021-67083333) or email (ir@hbavor.com).
The report covers the headquarters and all branches of Huabao Flavours & Fragrances Co., Ltd.Scope of Preparation
The data and cases in the report come from original records or nancial reports of the actual operations of the Company.Unless otherwise stated, all nancial data in the report are in RMB. In the event of any discrepancy between the nancialdata and the Company's annual nancial report, the annual report shall prevail.
Data Sources
From January 1, 2024 to December 31, 2024. To enhance the comparability and forward-looking nature of the report, somecontents are appropriately extended to the previous and subsequent years.
Time Frame
Denitions
Shenzhen Stock Exchange's Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange -Sustainability Report (For Trial Implementation)Global Sustainability Standards Board's GRI Sustainability Reporting Standards (GRI Standards)Chinese Academy of Social Sciences' Guidelines for Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0)China national standard Guidance on Social Responsibility Reporting (GB/T 36001-2015)United Nations' Sustainable Development Goals (SDGs) Business Guide
References
Report Access
Feedback
About This Report
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
“
Speech on ESG Delivered by the Chairman
”
In the current era, the international political and economic landscape is evolving rapidly amidst complex interactions,and global challenges persist. However, China's role as a "stabilizer" in the global industrial chain remains prominent.The avor and fragrance industry in China is undergoing a structural transformation period, where transitioning andupgrading, as well as shifting development paradigms, have become critical turning points for the industry. Facedwith new challenges and opportunities, Huabao Flavours & Fragrances remains unwavering, actively adjusting itsstrategic layout, and strengthening innovation-driven initiatives to adapt to the ever-changing economic situation andpromote sustained, healthy, stable, and high-quality development of the company's business.
Looking Back at 2024: Focusing on Strategy, Steadfastly Pursuing DevelopmentThis year, we have adhered to the ESG governance philosophy as our guiding principle, laying a solidfoundation for sustainable development. The company has integrated the ESG concept into our top-level strategicdesign, optimized our governance structure, and upgraded the "Strategy & ESG Committee" with the establishmentof an ESG Management O?ce and ESG Working Group. I personally take on the role of the Chief Strategy & ESGDevelopment O?cer. Meanwhile, in response to the national "dual carbon" strategy, the company has establisheda dedicated ESG Climate Project Working Group to accelerate the pace of green and low-carbon transformation,injecting new momentum into sustainable development. In 2024, the company achieved leapfrog breakthroughsin the ESG eld: we o?cially joined the United Nations Global Compact (UNGC); received an A-rating from WindESG, making us the only enterprise in the avor and fragrance industry in China to receive this rating currently; andwere awarded the "2024 Best Practice Cases for Sustainable Development Among Listed Companies" by the ChinaAssociation for Public Companies, as well as being included in the "2024 Sustainable Development (ESG) PracticeCases in China’s Fragrance, Flavor and Cosmetics Industries", among others.
This year, we have focused on technological innovation as our core to enhance our core competitiveness.The company has implemented a dual-engine drive strategy of "open innovation + independent research anddevelopment," deeply integrating our strategic mission of "green, nutritious, and healthy" with market demands.We have gradually established a comprehensive research platform that includes basic research, analytical testingresearch, process research, applied research, prospective study, and innovative achievement transformation fornatural flavors and natural extracts. By closely aligning with market demands, we promptly and precisely meetcustomers' diversied needs for avor and fragrance products, continuously innovating and developing popular avorformulas, and creating unique and attractive product portfolios. The successful hosting of the 2024 Science andTechnology Innovation Forum of Huabao Flavours & Fragrances fostered a strong culture of innovation and boostedtechnological condence. Additionally, the H&K Flavor Technology Center team, a subsidiary of Huabao Flavours& Fragrances, was honored with the title of "Excellent R&D Team in China Fragrance, Flavour, and CosmeticIndustries" by the China Association of Fragrance Flavor and Cosmetic Industries (CAFFCI), demonstrating ourcommitment to being a driving force for Healthy China through concrete actions.
This year, we have taken the path of global business layout to expand new horizons for market development.
Leveraging the strategic locations of Huabao Asia Pacic and PT Huabao Food to reinforce our domestic strengthand extend our reach overseas, the company has enhanced its overseas support system integrating R&D, regulatorycompliance, and raw material sourcing. With a reservoir of over 1,000 overseas raw materials and a portfolio ofover 600 Halal-certied products, we have established an e?cient overseas supply chain system. While vigorouslyexpanding into the Southeast Asian market, we are also actively opening up the African market and maintainingsteady growth in our business with European foodservice chains. With an open and inclusive attitude, we are writingthe responsibility and mission of Chinese enterprises on the global map, bringing the national brand "Chineseavors" to the world.
This year, we have harnessed the power of digitalization and intelligence to drive the transformationand upgrading of the industry. The company has continuously strengthened the construction of its digital andintelligent management system, comprehensively upgrading and transforming the Product Lifecycle Management(PLM) system to reshape the R&D process across all business segments. Simultaneously, we have advanced theformula and material collaboration system, achieving end-to-end full-link collaboration across research, production,supply, and sales. In 2024, the company was successfully selected for the list of “Outstanding Solutions” for urgenttechnological needs in the digital transformation of China’s light industry and was honored as a “pioneering” case inthe digital transformation of China’s light industry.This year, we have laid a foundation on human-centric values, working together to build a symbiotic andwin-win value ecosystem. The company is committed to implementing our corporate culture by organizing diversecultural and sports activities, providing comprehensive welfare benets, and establishing a broad platform for careerdevelopment, striving to enhance employees' sense of happiness and belonging. We have also improved our value-oriented incentive mechanism to cultivate a high-quality and high-performing talent team. Meanwhile, the companyclosely integrates cultural development with corporate responsibility, participating in the implementation of the ruralrevitalization strategy and investing in public welfare and charity. The "Flower Growth Program" is a successfulexample of the company's branded operation of public welfare education projects. By fullling our corporate socialresponsibilities and obligations, we demonstrate warmth and commitment, embodying a strong sense of national andsocial responsibility.Looking Ahead to 2025: Upholding Integrity, Embracing Innovation, and Jointly Drawing a New BlueprintWe will adopt the strategic positioning of "focusing on natural technology to provide high-quality and cost-e?ectiveavor and health solutions for global consumers, striving to become a leading and internationally inuential listedcompany in the eld of avors and ingredients in China." Through high-quality development, we will continuouslyenhance corporate value, driving growth with a dual strategy of acquisitions and mergers while strengthening marketvalue management. We will improve the ESG management system, adhere to long-term value orientation, andpresent our concept and achievements of sustainable development to the market, making our mission of "green,nutritious, and healthy" resonate with the pulse of the times.On our grand journey guided by the vision to "Flavor Your Life," we will not be deterred by challenges or obstacles,nor will we be hindered by mountains and seas. With the brush of fragrances and food ingredients, we will outline anew landscape of Chinese avors; by gathering the strength of innovative research and development, we will writea new chapter in the industry. Amidst the surging waves of the times, we will shine brightly with the radiance thatbelongs to Huabao!
Speech on ESG Delivered by the Chairman
XIA LiqunChairmanHuabao Flavours & Fragrances Co., Ltd.
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
HainanHubei
Huabao Flavours & Fragrances Co., Ltd. was established in 1996 and was successfully listed on the Shenzhen StockExchange (stock: Huabao Flavours & Fragrances, stock code: 300741) in 2018. It owns Xiamen Amber (833164.NEEQ), acompany listed on the National Equities Exchange and Quotations. The Company is mainly engaged in the R&D, production,sales and services of flavors and food ingredients, and is committed to providing green, nutritious and healthy flavorsolutions and technical services to global customers. The history of Huabao Flavours & Fragrances in avor exploration canbe traced back to Continental Chemical Society, the rst national avor business established in Shanghai in 1912. Today,the Company owns a series of well-known brands including "Huabao", "H&K", "Yifang", "Huafang", "Tianhong", "Hedon","Owada" and "Amber", and enjoys a high reputation and popularity in the industry. Especially in the past two decades,Huabao Flavours & Fragrances has taken up the banner of promoting national fragrance and cosmetic brands to the world,worked hard to seize the phased opportunities in overseas markets, continuously promoted internationalization, and builta core integrated industrial chain. It has overseas R&D centers in Holzminden, Germany, Singapore, and etc., as well as anationally recognized enterprise technology center. Additionally, it has R&D branches in Guangdong, Yunnan, and Fujian,upstream raw material extraction centers in Guangdong and Botswana, Africa, and production bases in Guangdong, Jiangxi,Fujian, and Hong Kong, creating a globally competitive technological innovation and industrial chain platform in all aspects.Currently, the Company has 46 subsidiaries in 7 countries around the world and has developed into an international, modernlarge-scale industrial group.
Green, Nutritious, Healthy
Flavor your life
Client rst, Value Creation and Shared Achievements
Innovation, Pragmatism, Loyalty, and Collaboration
Lofty, Aspiring, Competent and Versatile
About HuabaoCompany Prole
Corporate Culture
Corporate Strategy
Vision
Mission
Values
Enterprise spirit
Singapore
Indonesia
USABritish Virgin Islands
Xizang
Yunnan
HongkongGuangdongJiangxiFujianShanghaiBeijingGermany
Botswana
The Company has
subsidiaries in
countries around the world and has developed into aninternational, modern large-scale industrial group
Corporate philosophy, Intelligentmanagement, Asset securitization,and Business globalizationStrategic initiativesWith natural technology as the core,we provide global consumers with high-quality and cost-e?ective avor and healthsolutions to become China's leading andinternationally inuential listed company ofavors and ingredients.
Strategic positioning
About Huabao
Talent concept
Established Huabao AsiaPacic in Singapore2020
Kailong PerfumeFactory wasestablished and theH&K brand was born
1947
Shanghai Huabao relocated to Lhasa,Xizang and reorganized as HuabaoFlavours & Fragrances2016
AcquiredShanghai Yifang2022
Acquired the long-established Chinese avor andfragrance brand "H&K"Huabao (Shanghai) Technology Center wasrecognized as a "National Center for EnterpriseTechnology"
2004
Established F&G in Africa2007
Joined the United NationsGlobal Compact (UNGC);Co-edited the Guidelines forSustainable Development(Environmental, Social andGovernance) for Flavorand Fragrance CosmeticsEnterprises;Wind ESG rating wasupgraded to A, making itthe only listed companyin the domestic avorand fragrance industry toreceive an A-rating
2024
Established the rst national avor business Continental Chemical Society in Shanghai1912
Huabao Flavours &Fragrances successfully
listed on the ShenzhenStock Exchange
2018
Established PT Huabao
in Indonesia
2021
Established Huabao Food Flavors & Fragrances (Shanghai) Co., Ltd.1996
McKinsey drafted the strategic plan forthe Company, rolling out the Company's
"second entrepreneurship"
2015
Launched the rst restricted
stock incentive plan
2023
Huabao International was listed on the SEHKEstablished the Huabao Technology Center in Germany
2006
History
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportAbout Huabao
Tobacco (fragrance, additives), lter rods,cigarette papers, and lining papers
Tobacco sector
Dairy beverages, nuts and roasted seeds,cold drinks, candies, pu?ed foods, bakedgoods, meat products, and snack foods
Food sector
About Huabao
The Company is mainly engaged in the R&D, production, sales and services of flavors and food ingredients. Its mainproducts are edible flavors, daily flavors and food ingredients, which are widely used in food, beverage, cigarette, dailychemical and other elds.
IndustrialStructure ofHuabao Flavours& Fragrances
Industrial Structure
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Daily fragrance
Food ingredients
Pu?ed foods, roasted nuts, baked foods,meat products, our-made foods, instantfoods, snack foods, hot pot seasonings,beverages, etc.
Food ingredients sector
Aromatherapy and disinfection products,washing soap products, personal care,household cleaning, perfumes & cosmetics,space fragrance, pet care, oral care andindustrial products
Daily chemical sector
Food avors
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Main Honors in 2024
Fragrance and Cosmetics Industry ·leading Flavors and Fragrances Company
Sustainability (ESG) Practice Cases in China's
Fragrance and Cosmetics Industry in 2024
Jiading District Worker's Pioneer
of 2023
Jiading Industrial Zone Dream Classroom Student
Social Practice Activity Base
2023 Jiading District "Wang HongqiangModel Worker Innovation Studio"
The Company's director Ms. Yuan Xiaoqinwas awarded "Outstanding Contributor inFragrance and Cosmetics Industry"
Huabao Flavours & Fragrances, JiangxiH&K, Jiangxi Yifang, Shanghai Yifang, H&KFlavor, Xiamen Amber, Yingtan Huabao andGuangzhou Huafang, and etc. were rated asnational high-tech enterprises
The Company's director Ms. Yuan Xiaoqin wasawarded the Honorary President of ShanghaiFood Additive & Batching Industry Association
Jiangxi H&K was awarded as Excellent R&D
team in the avor and fragrance industry
Excellent Trade Union Organizationof Jiading Industrial Zone in 2023
Pioneer of 2024 China LightIndustry Digital Transformation
Selected in the 2024 Rankingof Masters of TechnologyUrgently Needed for ChinaLight Industry DigitalTransformation
Wind ESG rating rose two levels to A-rating,making it the only listed company in thedomestic avor and fragrance industry to
receive an A-rating
Excellent Practice Casesof Culture Constructionof Listed CompaniesExcellent Practice Cases ofSustainable Development
of Listed Companies
Huabao Flavours & Fragrances
待补充
About Huabao
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances deeply understands the importance of ESG to its sustainable development. ESG is not onlythe core tool for fullling environmental, social and corporate governance responsibilities, but also a key measure to promotethe implementation of the Company's strategic goals, optimize resource allocation and enhance long-term competitiveness.To systematically promote ESG, in 2024, the Company incorporated ESG management into the Board of Directors'Strategic Committee and renamed it the "Strategy and ESG Committee" to further optimize the ESG management systemand mechanism. The Company also established an ESG Management O?ce and an ESG Working Group, establishing afour-level management structure led and decided by the Board of Directors, guided by the Strategy and ESG Committee,coordinated by the ESG Management O?ce, and executed by the ESG Working Group, to ensure that ESG responsibilitiesare fully integrated into the business management decision-making system.In addition, the Company has revised, formulated and implemented the Working Rules of Strategy and ESG Committee ofthe Board of Directors of Huabao Flavours & Fragrances Co., Ltd. and the ESG Management System of Huabao Flavours& Fragrances Co., Ltd, providing institutional guarantees for ESG. By improving the management structure and systemconstruction, the Company is promoting the deep integration of ESG concepts and business strategies with higher standardsand more practical measures, and is committed to achieving the organic unity of economic and social benets, laying a solidfoundation for achieving the sustainable development goals.
Huabao Flavours & Fragrances considers the expectations and requirements of stakeholders as important considerations inthe Company's ESG management e?orts. This year, the Company carried out its rst dual ESG material issues identicationwork, exploring the relevance of ESG issues to its business and the signicance of their impact on its nance, and analyzingtheir dual material impact on its business development and finance. The Company conducted extensive and in-depthcommunication with various stakeholders through various channels, and identied the ESG issues that are most relevant toits business and of greatest concern to stakeholders through the following three steps.
Huabao Flavours & Fragrances ESG Management Structure
Material Issues Identication Process
Execution unit
Permanent management body
Research and guidance body
Leadership and decision-making body
ESG ManagementESG Management Architecture
Material Issue Analysis
Responsible for reviewing the Company's ESG report and major ESG matters, reviewingand approving the disclosure of major information related to the Company's ESG, etc.
Responsible for researching and developing the Company's ESG vision, researchingand making comments on the Company's ESG goals, strategic planning, governancestructure, management system, etc., reviewing and submitting the Company's ESGreport and major ESG matters to the Board of Directors, among others.
The office is composed of heads of ESG-related departments, and the head is thePresident. It is responsible for promoting the Company's ESG development strategy,participating in the research and identification of major ESG-related issues of theCompany, breaking down and implementing ESG goals, coordinating and supervisingthe continuous development of ESG-related work, etc.
The working group is led by the Business Administration and Information Departmentand is composed of heads of relevant departments and subsidiaries. It is responsible forimplementing ESG work tasks in accordance with the Company's overall plan, achievingESG interim goals, and reporting the implementation status to the ESG ManagementO?ce on a regular basis.
Board of Directors
Strategy and ESG
Committee
ESG Management
O?ce
ESG Working
Group
To understand the impact of its operations in 2024 on the economy, society, environmentand even all stakeholders, the Company carried out dual material issues identification.Through policy analysis, industry research, and benchmarking with peers, the Companyidentied major trends related to ESG, and identied 21 material issues based on nationalpolicies and capital market concerns.
Step 1 Identication of key issues:
The Company invited multiple stakeholders, including employee, shareholders, government,media, industry partners, and the public, to jointly assess the importance of the issues toHuabao Flavours & Fragrances and themselves.Step 2 Survey on stakeholders:
The Company analyzed the questionnaire results of internal and external stakeholders, andprioritized the issues to reect their "materiality of the economic, social and environmentalimpacts" and "materiality of nancial impacts", generating a substantial evaluation matrix.The Company's management reviewed the analysis results and confirmed the keydisclosure contents of this report as well as the objectives and implementation plan forfuture ESG management.
Step 3 Comprehensive analysis of material issues:
ESG Management
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Due diligenceCommunication withstakeholdersAnti-commercial bribery andanti-corruptionAnti-unfair competitionAddressing climate changePollutant dischargeWaste disposal
Ecosystem and biodiversityprotectionEnvironmental compliancemanagementEnergy usageUsage of water resourcesCircular economyRural revitalizationContributions to the society
Innovation-drivenSupply chain securityEqual treatment to SMEsSafety and quality ofproducts and servicesData security and customerprivacy protectionEmployeesIntellectual propertyprotection
Main stakeholdersIssues of concern
Communication methods and
channels
Government departmentsand regulatory agencies
●Compliant operation
●Standardized operation of listed companies
●
Tax contribution
●Environmental management
●Employment promotion
●Energy consumption and carbon emissions
●
Water management
●Workshops
●
Correspondence
●
Information disclosure and reporting
●Regular visits
●Tax payment
Shareholders and
investors
●
Corporate governance
●Value creation
●Investor relations
●
Business ethics
●General meeting of shareholders
●Investor communication meeting
●Investor hotline
●Company research
●
Stock exchanges' announcement,website,
●WeChat o?cial accounts
Customers
●Customer management
●Product quality and safety
●
Technology R&D innovation
●Information security and privacy protection
●
Chemical safety
●
Customer satisfaction survey
●
Email and daily telephonecommunication
●
Customer email
●Response to customer complaints
●Customer visits
●Quality management system
Supplier
●Product quality and safety
●Responsible supply chain
●Supplier management system
●Open bidding
●Procurement process
Other partners
●
Industry exchange and cooperation
●Business ethics
●Regular communication with businesspartners
●Industry seminars
Employee
●Occupational health and safety
●Career training and development
●Employee compensation and benets
●Employment management
●Intranet
●
Training and orientation
●Email and suggestion box
●Regular meetings
●Employee performance evaluation
●
Employee activities
Society and the public
●Hazardous waste and emissions
●Tackling climate change
●Renewable and clean energy
●
Taking social responsibility
●Helping rural revitalization
●
Emphasis on local community development
●Website
●Social media and responses
●Charitable donations and volunteerservices
●Community activities
Attaching great importance to communication with stakeholders, the Company has established a regular stakeholdercommunication mechanism to identify ESG issues of concern to stakeholders, and actively respond to them. This year, theCompany mainly communicated with stakeholders as follows:
Communication with stakeholdersMateriality Matrix
1519
LowHighMateriality of Financial ImpactsMateriality of Economic, Environmental, and Societal Impacts
High
ESG Management
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Scientic and technological innovation is the core element in developing new quality productive forces. Huabao Flavours& Fragrances deeply implements the innovative strategy of "one generation of sales, one generation of R&D, and agiletransformation", actively promoting its strategic transformation from a "product designer and manufacturer" to a "solutionprovider". By formulating the Guidelines of Huabao Flavours & Fragrances Co., Ltd. on Production of TechnologicalInnovative Products, the Company has established a complete innovative product iteration mechanism. While continuouslyoptimizing the performance of existing products, it has proactively planned the research and development of next-generationtrend products, accelerating the industrialization and commercialization of scientic and technological achievements, andcomprehensively improving end-to-end market responsiveness and improve the e?ciency of R&D investment and output.This innovation system has e?ectively improved the e?ciency of R&D input-output, not only meeting the urgent needs ofglobal customers for green, nutritious and healthy products, but also continuing to lead the avor innovation in the food andbeverage industry, consolidating the Company's vision of "avor your life".
Group Standards Jointly Formulated by the Company
Innovative R&D
IndicatorUnit202220232024R&D investmentRMB 10,00015,369.3613,384.6813,652.40Total R&D expenditure in operating income%8.129.0210.06
Standard name
Guidelines for the Shelf Life Management of Food FlavorsGuidelines for the Shelf Life Management of Daily-Used Spices
Natural Food FlavorsOdor Control Technical Guide
Key performance
2024 Science and Technology Innovation Forum of Huabao Ltd.
Case: Leading the Future, Cultivating New Quality - 2024 Science and TechnologyInnovation Forum of Huabao Ltd. Successfully Held
In November 2024, Huabao Flavours & Fragrances specially invited a number of major experts and scholars in theindustry and nearly 100 people of insight in scientic and technological innovation within the Company to attend theforum. During the forum, experts shared a wealth of insights, including decoding the top ten trends in global food andbeverage in 2025, the development opportunities and challenges of the nutritional and healthy food industry, newopportunities for the development of functional food ingredients, the broad application prospects of synthetic biologyin the food industry, and how generative AI empowers the flavor and fragrance industry. These insights providesHuabao Flavours & Fragrances with valuable strategic guidance and a reference framework for future practice inexploring the frontiers of science and technology and driving sustainable development.Huabao Flavours & Fragrances also provided participants at internal theme sharing session with in-depth analysisof its latest technological frontiers, future development plans, market evolution trends and other core content, fullydemonstrating the Company's profound heritage and outstanding strength in the eld of scientic and technologicalinnovation.The successful holding of this forum not only further enhanced the leading position of Huabao Flavours & Fragrancesin the field of technological innovation, but also injected new vitality and impetus into the Company's futuredevelopment.
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Technological Innovation
The Company adheres to market demand-oriented approach, actively deploys innovative research and development in foodavors and ingredients, and deeply explores new trends, new technologies and new elds in the development of the avorindustry at home and abroad, promoting the technological upgrading of avor products and the innovative development offood ingredients to meet the diverse needs of customers.
Innovative R&D Results
Probiotics crystal ball technology
Sugar-reducing avor technology
Bursting bead rubber technology
New healthy umami technology
Non-meat thermal reaction technology
Hot melt extrusion encapsulation technology
Microencapsulation technology
The Company's Food Innovation Center has launched multiple categories and series of innovative products such as avoredsyrups, plant essences, and plant extracts. They are mainly used in beverages (such as co?ee and tea), ice cream, andbaking. With raw material innovation and technology research and development, it provides the market with diversifiedsolutions.
Product Innovation
Huabao Flavored Syrups
Plant Extracts
Plant Essences
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Extraction and Concentration Workshop
Food Ingredients Laboratory
Preparation and Sterilization Workshop
During the reporting period, the Company's Technological Innovation Food Ingredient Industrialization Pilot Base projectwas successfully completed and put into production. Two production lines for natural plant extract concentrate and avoredsyrup were built, equipped with UHT instantaneous sterilization equipment and aseptic lling lines. The workshops were builtin accordance with GMP cleanliness standards, and a food ingredient laboratory with full functions such as physical andchemical, microbiological, analytical testing, and stability was built. This marks that the Company has explored new paths forindustrial transformation in the eld of food ingredients and has taken a solid and crucial step.
R&D Base Construction
The Company attaches great importance tothe construction and training of a scientificresearch team and continuously optimizes itstalent structure. It has gathered an expert teamconsisting of a number of foreign experts withinternational influence, well-known domesticperfume experts, and a group of doctors andmasters in the fields of food science, bio-engineering, chemistry, etc. The Companyuses the postdoctoral research workstation asa platform to continuously introduce doctoralstudents from universities to carry out specialresearch projects to help its technologicalinnovation. The Company also attaches equalimportance to the introduction and incentivesof talents, and has formulated systems suchas the Implementation Rules of HuabaoFlavours & Fragrances Co., Ltd. for Rewardand Punishment Management of Scienceand Technology Projects to encourage everyresearcher to actively innovate and conductdown-to-earth research to achieve a win-winsituation of value creation and personal returns.
Scientic Research Team Building
Number of R&D personnel
Number of R&D personnel (person)R&D personnel ratio
2023
5%
10%
15%
20%
25%
2024
24.57%
23.57%
Educational Background of R&D Personnel
Bachelor
Master
PhD
Others
In addition, Huabao Flavours & Fragrances has established close industry-university-research cooperation with many well-known domestic universities and research institutions such as Jiangnan University, Nanchang University, and JiangsuUniversity. Through project cooperation, technical exchanges, talent training and other forms, it continuously introduces newscientic research concepts and technical means to enhance its independent innovation ability.
In 2024, the Company initiated
scientic and technological projects, successfully completed
projects, andhad
projects ongoing by the end of the year.
Fragrance Products - Tea Bags, Fragrance Beads
Case: Industry-university-research Collaborative Innovation Producing Breakthrough inHeat-resistant Flavor Technology in Cooperation with Nanchang UniversityIn the industry-university-research cooperation project withthe College of Food Science & Technology, NanchangUniversity, the Company conducted research on heat-resistant controlled-release avor encapsulation technologyto address the problem of poor flavor retention of edibleflavors under high temperature conditions. Through jointpostdoctoral training, the two sides successfully developeda avor product that dissolves quickly in cold or hot waterand maintains a continuous fresh avor. It has been usedin hot drinks, tea bags, solid beverages, candies and otherelds. This project not only broke the monopoly of foreigncompanies on the core technology of avor encapsulation,but also signicantly enhanced the market competitivenessof the Company's flavor products. In the future, the two sides will continue to deepen cooperation, develop flavorproducts that can withstand high temperatures of 180°C with a long shelf life and unique avor, and further expandtheir applications in frying, extrusion and pu?ng, injecting new impetus into the development of the industry.
Key performance
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
The Company strictly abides by relevant national laws and regulations such as the Patent Law of the People's Republic ofChina, the Copyright Law of the People's Republic of China and the Enterprise Intellectual Property Management Standards,and has formulated internal rules and regulations, such as the Implementation Measures of Huabao Flavours & FragrancesCo., Ltd. for Publishing Papers and Applying for Patents and the Implementation Rules of Huabao Flavours & FragrancesCo., Ltd. for Patent Management, to further rene and clarify the creation, protection and use of intellectual property rights.
Under the guidance of the Belt and Road Initiative, the Company continues to deepen its international strategic layout,forming a diversied market structure that focuses on emerging markets such as Southeast Asia and Africa on the basis ofconsolidating the existing European market. It fully leverages the important role of its overseas companies, Huabao AsiaPacic and PT Huabao Food, as regional centers in Southeast Asia, and continuously enhances its brand inuence andmarket competitiveness through a series of measures such as deepening local cooperation, creating innovative products,and actively participating in international exhibitions. Relying on the strategic layout of multi-point efforts, the Companyis gradually achieving steady expansion in the Southeast Asian and African markets, demonstrating the location valueof overseas companies reinforcing domestic market and radiating overseas market, and also injecting new impetus intoeconomic cooperation and cultural exchanges among countries participating in the Belt and Road Initiative.
Intellectual Property Protection
Overseas Market ExpansionIn 2024, the Company published
papers, and applied for
software copyright (pending approval).In 2024, the Company obtained
new patents, including
invention patents and
utility model patents;As of the end of the reporting period, the Company held
patents, including
invention patents and
utility model patents, and had a total of more than10,000 avor formulas that have been sold.Number of Patents Held
Indonesia
Vietnam andThailand
Africa
In the process of globalization, Huabao Flavours & Fragrances actively responds to the Belt and Road high-qualitydevelopment initiative, taking international expansion as its core strategy, and continuously improving its globalcompetitiveness through the two-way e?orts of external market development and internal R&D system construction. TheCompany actively develops overseas markets, and builds supply chain network in Southeast Asia to integrate high-qualityresources, promoting the internationalization of key categories such as food avors and food ingredients; relying on theglobal R&D collaborative system and combining localized technological innovation, it also continuously optimizes its productstructure to meet the diverse needs of overseas markets.
International Expansion
501501002024
2023
2022
200250300
Starting from scratch, PT Huabao Food has established close and trusting cooperativerelationships with many local tea and food ingredient chain companies, especially with theleading co?ee chain brand Tomoro. In May 2024, it successfully launched the "Gareld" IP co-branded product, leading the Indonesian avored co?ee market.In August 2024, at Tomoro's 2nd Anniversary Conference, PT Huabao Food was the onlysupplier to receive the “Quick Response Award”.In September 2024, at the FIA (Fi Asia Indonesia) held in Jakarta, PT Huabao Food andHuabao Asia Pacic made their debut in the Asia-Pacic market, showcasing the Company'sfour major product lines of avors and fragrances, avored syrups, avor premixes and jamproducts, and received a positive response from the market.The Company achieved business breakthroughs with a variety of fish sauce products andwinter melon avored functional beverages;In October 2024, at the Vietnam Food Ingredients Exhibition, distributor P.P.T and HuabaoFlavours & Fragrances jointly exhibited Huabao avored syrup products.The Company quickly formed a sales team initially establishing a sales network covering morethan 10 countries, and has achieved sales one after another.
Indonesia's Tomoro Co?ee and Gareld IP
Co-branded Products
Group photo of F&G Employees in Africa
Key performance
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
PT Huabao Food Settles in the "Silicon Valley" of Jakarta
Huabao Flavours & Fragrances Participates at the Fi Asia Indonesia
Case: PT Huabao Food Entered the "Silicon Valley" of JakartaCase: Debut at the Fi Asia Indonesia
In June 2024, PT Huabao Food o?cially unveiled its new o?ce building in the BSD in Jakarta, opening a new chapterin the development of Huabao overseas food business. The rolling out of this project marks the Company's footholdin the Southeast Asia and is also a key step for the Company to respond to the Belt and Road Initiative and deepenits global business. By integrating Indonesia's natural raw material resources with its international R&D system,the Company aims to provide innovative solutions to local and global customers, while promoting economic andcultural exchanges between China and Indonesia. In the future, the Company will build a raw material system forSoutheast Asian food ingredients and avor products with Indonesia as the center, providing end-to-end support fordomestic food and beverage companies to go overseas, and continuing to promote the healthy development of theinternationalization strategy.
In September 2024, the Fi Asia Indonesia opened at the Jakarta International Expo. Huabao Asia Pacific andPT Huabao Food of Huabao Flavours & Fragrances jointly participated in the exhibition and explored the futuredevelopment trends and innovation opportunities of the food industry with more than 800 food companies from morethan 40 countries and regions in the global food industry. This event not only deepened the Company's understandingof the Southeast Asian market, but also further promoted the Company's international development strategy, enablingit to expand global market and strengthen regional cooperation.
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
The Company regards technological innovation as the primary driving force for its sustainable development, and has builta global R&D system to provide strong technical support for its internationalization strategy. Relying on the product life-cycle management (PLM) system, the Company has achieved collaboration among R&D teams in Shanghai, Guangzhou,Singapore, and other locations, forming a cross-regional and cross-organizational innovation network. Through the targetedrelease of overseas projects, each regional team combines local market demand with technological advantages to developproducts that meet regional flavor preferences and gradually build a localized product system. The construction of aglobal R&D system provides a solid guarantee for the expansion of overseas markets and further promotes the in-depthimplementation of the internationalization strategy.
Overseas R&D System
Selected Halal Certication for the Company's Products
Case: Overseas Raw Material Library BuiltTo enable overseas products to meet the regulations of different countries, the Company has started to build anoverseas raw material library. As of the end of 2024, the overseas raw material library has included more than 1,000conventional raw materials. In addition, taking Indonesia as a key overseas market, the Company is also speedingup the halal certication of its Indonesian products. Currently, the Company has more than 600 products obtainedIndonesian halal certication.
To improve operational efficiency, reduce costs and optimize customer experience, Huabao Flavours & Fragranceshas continuously made efforts to comprehensively integrate the digital intelligent transformation of R&D, production,supply chain, sales, nance and other departments by opening up software channels and promoting cross-departmentalcollaboration and information sharing, striving to achieve the full implementation of intelligent decision-making, intelligentoperation and intelligent management, and comprehensively enhance the Company's competitiveness and sustainability.
1. Intelligent digital R&D management: improve the e?ciency of R&D project management, shorten
the R&D cycle, and enhance product innovation capabilities with Intelligent digital tools and platforms(PLM system, OA software, etc.).
2. Optimal supply chain management: intelligently digitalize the whole process from procurement
to production and logistics by introducing intelligent digital supply chain management systems (SAP,centralized procurement platform, bar-code system, etc.), thereby improving the transparency andresponsiveness of the supply chain.
3. Production efficiency improvement and operating costs reduction: improve the accuracy,
e?ciency and consistency of the production process and reduce labor costs and production costs byintroducing automated intelligent digital production systems (smart factories, automated productionlines, etc.).
4. Data-driven decision support: establish a data center and BI system to collect and analyze various
business data in real time, providing a scientific basis for strategic decision-making and operationaloptimization.
1. Promote intelligent product R&D with AI, machine learning and big data analysis technologies to
enhance the innovation and market adaptability of product design.
2. Realize intelligent and adaptive optimization of production lines with AI and IoT technologies to
maximize the automation, exibility and precision of production.
3. Achieve intelligent management of enterprise operations with AI, cloud computing and data
analysis tools to improve the Company's decision-making e?ciency and response speed.
Short-term Digital Intelligent Transformation Goals
Long-term Digital Intelligent Transformation Goals
Digital Intelligence Empowerment
Digital Intelligent Transformation Goals of Huabao Flavours & Fragrances
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
The Company actively responds to the country's new deployment to accelerate the digital industrialization and industrialdigital transformation, and continues to advance the construction of digital intelligent factories. By deeply integratingadvanced information technology, artificial intelligence and automation equipment, it breaks the bottleneck of traditionalmanufacturing models and promotes the automation upgrade of the entire chain from production planning to nished productdelivery. It not only greatly improves production efficiency, but also effectively optimizes resource utilization and energymanagement, promoting green production and low-carbon operations. The construction of digital intelligent factories notonly deeply meets the urgent needs of digital transformation in the overall national development, but also brings signicantcost advantages and market competitiveness to the Company, enabling the Company to better meet changes in marketdemand.
Digital Intelligent Factories
Automation Equipment - Robotic Arm
Case: Jiangxi H&K Further Improved Information Construction
As a demonstration unit of information construction of Huabao Flavours &Fragrances, Jiangxi H&K relies on advanced information technology andautomation equipment to achieve the goals of lean production, efficientmanagement and low-cost operation. In 2024, Jiangxi H&K comprehensivelyoptimized its production planning, warehouse management, productionprocess, nished product packaging and other links based on the existing SAPMRP (Material Requirements Planning) system, promoted the automationand intelligent upgrading of the entire production process, and realized thee?cient combination of manual and automated production, greatly improvingproduction e?ciency and on-time delivery rate.
Production Planningand MaterialsManagement
Workshop Production
and Quality Control
Automated Packagingand Logistics
Through precise data analysis and forecasting, the SAP MRP system automaticallygenerates optimal production schedules and material requirements plans based onbusiness needs, production capacity and material inventory.The system automatically generates warehouse scheduling plans based on thefirst-in-first-out principle and out-of-warranty material control requirements toensure optimal use of materials, monitor the inventory status of materials in realtime, and automatically adjust procurement and replenishment plans.The intelligent auxiliary system helps workshop managers arrange productiontasks reasonably. The feeding process adopts automatic weighing and countingtechnology to ensure the accurate feeding amount of each raw material.The system's built-in error-proofing mechanism and tolerance ratio controleffectively avoids erroneous placement of raw materials during the productionprocess.The system automatically performs canning, weighing, capping and labelingaccording to preset parameters to ensure that each bottle of product meetsthe specification requirements. In addition, the efficient integration of automaticpackaging and palletizing by robotic arms completes the final processing of thenished products.
The SAP system achieves seamless connection betweenprocurement, production, sales, nance and other modules,unies and standardizes business processes, realizing datastandardization and integration covering the end-to-end businessvalue chain, and providing data support for the Company'sstrategic advancement, business growth and key decisions.
The PLM platform covers the raw materials,formulas, processes, specications andregulatory management of avors andfood ingredients, improves data sharing,knowledge accumulation and retrievale?ciency, and realizes automated regulatoryjudgment, enhancing R&D e?ciency andcompliance. In addition, the R&D formulasare seamlessly connected to productionplants, supporting global R&D collaborationand promoting integrated product data
management.
The barcode system is seamlesslyconnected with the SAP systemand covers key businessprocesses such as procurement,quality inspection, production,warehousing and sales, ensuringthe transparency of the productionprocess, optimizing inventorymanagement and production planexecution, and promoting thedigital and paperless managementof the production process.
The funding platform includes directbank-enterprise settlement, accountmanagement, payment and collectionmanagement, and funding forecastingmodels, improves payment e?ciencyand security, and strengthenstransaction control, promoting datainterchange between industry andtreasury systems, and achievingresource coordination and optimal
allocation.
The procurementmanagement platformphase I leveragesthe advantagesof procurementscale, reducesprocurement costs,and enhances supplychain capabilities,realizing e-commerceprocurement. Inaddition, the platformis integrated withSAP, OA and othersystems to achievedata integrationand businessstandardization.
The BPC systemoptimizes the key nodesof the reconciliation,consolidation andreporting processesof the headquartersand its subordinateunits, accelerates theconsolidation process,and realizes integrated,standardized, automatedand scalable reportpreparation on the basisof centralized nancialcontrol, improving thee?ciency of consolidatedstatement issuance, andstrengthening nancialcontrol, data analysisand decision supportcapabilities.
The contract management system, with a legalcontract template library established by the Companyand risk control measures in contract approval,improves the compliance and risk control capabilitiesof contract review and achieves a full closed loop of
contract management.
The SAPsystemThe contractmanagement
systemTheprocurementmanagementplatform
The BPCsystem
The fundingplatformThe barcodesystem
The PLM platform
Digital Intelligent
Projects ofHuabao Flavours
& Fragrances
The digital intelligent projects not only improve the Company's operational efficiency and resource utilization rate, butalso enable the Company to be more exible and responsive to the market. By integrating various business systems, theCompany obtains accurate data in real time and ensures the transparency and ow of information, thereby supporting fasterdecision-making and more rened management, laying a solid foundation for future business expansion and technologicalinnovation.
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Based on the construction of digital intelligent factories, the Company further applies digital intelligent technology to theR&D eld to promote the intelligent transformation of avor R&D. So far, the Company has completed the construction ofthe spectrum basic database, laying a solid data foundation for intelligent perfumery and intelligent manufacturing. To realizeAI-enabled technological innovation, the Company has launched the research and development of intelligent assistedperfume making. With AI neural network deep learning technology and massive data training, it conducts in-depth researchon the composition of various chemical components to achieve intelligent identication of unknown avor samples. This notonly improves the e?ciency and accuracy of avor research and development, but also provides a scientic basis for thedevelopment of innovative formulas, thereby improving product quality and market competitiveness. The Company plans toinitially realize intelligent analysis of the ingredients of avor samples in 2025, marking the comprehensive transformation ofavor R&D from traditional experience-driven approach to data-driven and intelligent approach.
In the context of accelerated digital intelligent transformation, ensuring data security and customer privacy is an importantpart of fullling its social responsibilities. In 2024, the Company built a solid information security defense line by continuouslystrengthening technical protection measures, optimizing the Information Security Management Regulations of HuabaoFlavours & Fragrances Co., Ltd., establishing full-time information security management specialists, and enhancingemployee information security awareness.
Digital Intelligent PerfumeryInformation Security Protection
Selected in the 2024 Ranking of Masters ofTechnology Urgently Needed for China LightIndustry Digital Transformation
Certicate of Pioneer of 2024 China Light Industry Digital
Transformation
Case: Light Industry Digital Transformation Driven by Technological Innovation
In November 2024, Huabao Flavours & Fragrances, based on its outstanding achievements in the field of digitaltransformation, was successfully selected in the 2024 Ranking of Masters of Technology Urgently Needed forChina Light Industry Digital Transformation at the 14th China Light Industry Informatization Conference, and wasawarded the title of Pioneer of 2024 China Light Industry Digital Transformation. The Company focuses on theresearch and development of avors and food ingredients. By introducing Siemens digital technology and AI deeplearning models, it has built an intelligent management system covering the entire life cycle of formulas, signicantlyimproving R&D e?ciency and compliance. In particular, the Company has made important breakthroughs in the eldof digital intelligent perfumery, using AI technology to accurately identify fragrance ingredients, opening up new pathsfor product innovation, and plans toachieve intelligent analysis of fragranceingredients by 2025. This series ofachievements not only demonstratesthe Company's technological leadershipin digital transformation, but also sets abenchmark for the industry and furtherconsolidates its leading position in theeld of light industry digitalization.
In 2024, the Company hadnodata security incidents;no incidents of customer privacy violation.
Formulate and implement the Information Security Management Regulationsof Huabao Flavours & Fragrances Co., Ltd. to systematically standardize datamanagement, access control, risk prevention and other aspects.
Data backup: establish an e?cient backup mechanism, perform multi-level backup ofimportant data regularly, and develop detailed recovery plans.Network security protection: deploy network firewalls, formulate security accesspolicies, monitor network tra?c in real time, and prevent network attacks.Data encryption: use advanced encryption technology to protect sensitive data andprevent unauthorized access.User access control: strictly assign data access rights according to job requirementsto prevent unauthorized operations.
Establish a professional team consisting of IT heads and information securityadministrators to focus on information security management and risk prevention andcontrol.
Establish an information security emergency plan to ensure rapid response andreduce the scope of impact in the event of emergencies such as data leaks or cyberattacks.
Conduct regular network and system security assessments to identify potential threatsand x security vulnerabilities in a timely manner.
Improvemanagement
system
Implementsafety protectionmeasures
Establishingan informationsecurity team
Establish an
emergencyresponse
mechanism
Conduct riskassessment and
vulnerability
remediation
Information Security Management Measures of Huabao Flavours & Fragrances
Key performance
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
Main Duties of Information Security Administrators
Data security policy: ensure the e?ective implementation of the Company's data security policy,
covering all aspects such as data storage, transmission, and backup, to ensure data security.
Monitoring and risk assessment: conduct regular system and network security monitoring,
assess potential risks, and promptly discover and repair security vulnerabilities.
User access management: strictly control data access rights to ensure that sensitive information
is only accessible to authorized personnel, and prevent data leakage due to negligence in accessmanagement.
Employee safety training: offer information security awareness training along with employeeorientation to strengthen their safety awareness and reduce the safety risks caused by humanerrors.
Emergency response and incident handling: organize regular emergency drills, coveringscenarios such as data recovery, network interruption, and server failure, to comprehensivelyenhance emergency response capabilities. In response to sudden security incidents such as dataleaks and cyber attacks, we can take prompt countermeasures to minimize losses and ensurebusiness continuity and stability.
Orientation Training for New Employees
Case: Improving Information Security Awareness to Build a Solid Information SecurityDefense LineHuabao Flavours & Fragrances attaches great importance to data security and customer privacy protection. InSeptember 2024, the Company specially incorporated this key topic into the new employee orientation training.Through interpretation of laws and regulations related to data security and customer privacy protection, case analysisand such other activities, employees got a deep understanding of the signicance of information security and theserious consequences of information leakage. This training e?ectively enhanced new employees' information securityawareness and incident prevention capabilities.
Huabao Flavours & Fragrances focuses on improving consumers' quality of life and actively participates in various industryevents and innovative activities. The Company effectively links industry resources with outstanding performance, andpromotes technological innovation and sustainable development of the avor and fragrance industry. Through collaboration,the Company not only continues to optimize product value, but also injects new impetus into industry progress. It iscommitted to bringing healthier and more delicious taste experience to global consumers and helping the industry movetowards a more sustainable future.
Industry Cooperation and Exchange
2024 (the 10th) National Academic ExchangeConference on New Technology Developmentand Application of Flavors and Fragrances & The5th New Products, New Technologies and NewEquipment Exhibition
The 27th Food Ingredients China (FIC2024)March 2024
The 2nd Synthetic Biology IndustryConference & Exhibition
April 2024
AAES2024 Asiaceutical Expo & SummitSeptember 2024June 2024
China Congress of Perfumer & Flavorist (CCPF)November 2024
2024 CAFFCI Annual Meeting & Expo (CAME)
October 2024
2024 China Science-Technology
Symposium of F&F Industry
May 2024
Personal Care and Homecare Ingredients(PCHi2024)
March 2024
The 14th China Light Industry Information Conference
November 2024
Industry Exchange Conferences Huabao Flavours & Fragrances Participated in 2024
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThe Big Picture: Innovation-driven International Journey
of Huabao enzymatic hydrolysis of dairy flavors from four aspects: technical background, development status,product examples and trend outlook. It fully demonstrated its latest achievements in the eld of avor and fragrancetechnology innovation to the industry, and conducted in-depth technical exchanges and cooperation discussions withmore than 500 well-known experts, scholars, and corporate representatives in the eld of avors and fragrancesfrom all over the country, and learned advanced technologies and innovation experiences.Vice President of Huabao Flavours & Fragrances Innovation Center
Dr. Wang Hongqiang Gives a Speech at the Forum
Commendation Ceremony of the 2024 China Conference of Cosmetics Science and
Technology & The 15th Academic Symposium
Case: Technological Innovation-Led Flavor Promotes Healthy and Sustainable Development
In May 2024, the 2024 China Science-Technology Symposium of F&F Industry, organized by the China Association ofFragrance Flavour and Cosmetic Industries with the theme of "Smart Technology, Unlimited Possibilities", was held inWuxi to share the latest development trends and cutting-edge research in science and technology in the global avorand fragrance industry. Huabao Flavours & Fragrances was invited to participate in a series of activities includingthe AI technology forum, the commendation ceremony, the perfumer competition preliminaries, and the TechnicalGuidelines for Odor Control in the Flavor and Fragrance Industry group standard launch meeting, demonstrating itsoutstanding comprehensive innovative strength.
Exhibition Booth for Innovative Achievements in Three
Business Areas
Duan Jingwei, Director of Business Administrationand Information Department, sharing His Views at the
Company's ESG Development
Huabao Food Innovation Center Introduces its NaturalExtract Products Independently Developed and Produced
Case: Jinling Ode to Fragrance: A Delicious Encounter
Case: Flavor and Fragrance Exchange Meeting Exploring Industry Innovation and Development
In October 2024, the CAFFCI Annual Meeting & Expo (2024 CAME) was held in Nanjing. Huabao Flavours &Fragrances and 138 international and domestic high-quality manufacturers participated in the event, and gatheredtogether with industry leaders, experts and scholars, and corporate representatives to discuss industry developmenttrends, share the latest technological achievements, and jointly seek high-quality development of the industry. At the2024 CAME, Huabao Flavours & Fragrances made a splendid appearance with its innovative achievements in thethree major business areas of food ingredients, edible avors and daily-use avors, allowing the audience to get closeto and experience in person the avored products that combine taste and health, so that more people appreciate thedeliciousness and health brought by Huabao Flavours & Fragrances.
In June 2024, the 2024 (the 10th) National AcademicExchange Conference on New Technology Developmentand Application of Flavors and Fragrances & The 5thNew Products, New Technologies and New EquipmentExhibition, co-organized by the National Light IndustryFlavor and Fragrance Industry Productivity PromotionCenter and well-known industry companies, wasgrandly held in Guangzhou.H&K Flavor gave a technical report at the conferencetitled "Indispensable Enzymes - Research Progressin the Preparation of Dairy Flavors with EnzymaticHydrolysis Technology", sharing the research results
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances has always been committed to building an efficient, transparent andcompliant corporate governance system, strictly following the guidance of laws and regulations suchas the Company Law and the Securities Law, thoroughly implementing various requirements of theCode of Corporate Governance for Listed Companies and the Rules Governing the Listing of Stockson the ChiNext Market of Shenzhen Stock Exchange, actively responding to the requirements of theGuidelines on Self-Regulation of Listed Companies on Shenzhen Stock Exchange No.2 - StandardizedOperation of Listed Companies on the ChiNext Market and other relevant normative documents, andconstantly improving and optimizing corporate governance structure. The three-committee and one-layer governance structure consisting of the General Meeting of Shareholders, the Board of Directors,the Board of Supervisors and the management further standardizes the Company's daily operationprocesses, signicantly enhances the scientic and standardized nature of corporate governance, andlays a solid foundation for the Company's sustainable development.
Corporate Governance
The Company's Organization Chart
The General Meeting of Shareholders serves as the Company's authority body. To regulate corporate conduct and ensurethat the general meeting of shareholders exercises its authority in accordance with the law, the Company strictly organizesthe general meeting of shareholders in accordance with the provisions of relevant laws and regulations, including theCompany Law, the Securities Law, and other normative documents, as well as the Articles of Association. This ensures thatshareholders have the right to be informed about, participate in, and vote on signicant corporate matters. The Companyalso strives to facilitate shareholder attendance at these meetings, particularly safeguarding the legitimate rights andinterests of minority shareholders, enabling them to fully exercise their legal rights as shareholders.
The Board of Directors is the Company's operational decision-making and business leadership body. The Company strictlycomplies with the Company Law, the Securities Law, the Rules Governing the Listing of Stocks on the ChiNext Marketof Shenzhen Stock Exchange and other relevant laws and regulations, as well as the Articles of Association, the Rulesof Procedure of the Board of Directors, and the Work System for Independent Directors, to regulate the deliberation anddecision-making procedures of the Board of Directors of the Company, so as to enable the Directors and the Board ofDirectors to e?ectively perform their duties.In order to further strengthen the professionalism and independence of decision-making, the Board of Directors of theCompany has established four special committees: the Audit Committee, the Strategy and ESG Committee, the NominationCommittee, and the Remuneration and Appraisal Committee. Each special committee provides scientic and professionalopinions and references for the Board of Directors' decisions in accordance with strict rules of procedure and operatingprocesses.
Shareholders and the General Meeting of Shareholders
Directors and the Board of Directors
In 2024, the Company held
general meeting of shareholders.
In 2024, the Company held
Board of Directors meetings,
Strategy and ESG Committee meeting,
Remuneration and Appraisal Committee meetings,
Audit Committee meetings, and
Nomination Committeemeeting. The average attendance rate of the Board of Directors was100%.In 2024, the Board of Directors of the Company consisted of
directors, including
independent directors,accounting for
33%; there was
female director, accounting for
11%.
Board of Supervisors
General Meetingof Shareholders
Strategy and ESG
CommitteeAudit Committee
AuditDepartment
NominationCommitteeRemuneration andAppraisal Committee
Board of DirectorsPresidentBoard of DirectorsO?ce
Marketing Center
Technology Innovation
Center
Operation Service Center
Purchasing Department
Investment and
Development Department
HR and AdministrationDepartment
Business Administration
and Information
Finance Department
Key performance
Key performance
Subsidiaries
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
TypeNameGender
Professional capabilitiesIndustryexperience
Professionalqualication
Financialmanagement
ChairmanXia LiqunMaleNon-independent directorLin JiayuMaleNon-independent directorYuan XiaoqinFemaleNon-independent directorGao XuMaleNon-independent directorRen MiaoMaleNon-independent directorHan PengliangMaleIndependent directorQuan ZeMaleIndependent directorWu ChangyongMaleIndependent directorYang JinjianMale
Diversity on the Board of Directors
The Board of Supervisors serves as the Company's supervisory body and performs supervisory functions on behalf of thegeneral meeting of shareholders. During the reporting period, the Board of Supervisors of the Company conscientiouslyperformed its duties in accordance with the Company Law, the Articles of Association, the Rules of Procedure of the Boardof Supervisors and other relevant laws, regulations and rules, and independently supervised the Company's materialmatters, related transactions, nancial status and the legality and compliance of the directors and senior management inperforming their duties, ensuring the Company's compliance operations, improving transparency and preventing risks, andpromoting the Company's sustainable and healthy development.
Supervisors and the Board of Supervisors
In 2024, the Company held
meetings of the Board of Supervisors.In 2024, the Board of Supervisors of the Company consisted of
supervisors, including
employee representativesupervisor.
Investor Communication Channels
GeneralMeeting ofShareholders
InvestorCommunication
MeetingInvestorHotlineCompanyResearchQ&A onEasy IR
Stock ExchangeAnnouncementsand O?cialWebsite
WeChatPublicAccount
Huabao Flavours & Fragrances adheres to the core principles of compliance, equality, initiative andhonesty and trustworthiness, and is committed to building a fair, transparent and efficient investorrelations management system. The Company strictly abides by the Securities Law, Guidelines forInvestor Relations Management of Listed Companies and other relevant laws, regulations, standardizeddocuments and relevant provisions of the Articles of Association, etc., and has formulated theManagement System for Information Disclosure and Investor Relationship to ensure the accuracy andtimeliness of the disclosure of all financial information, and to safeguard the fair order of the capitalmarket.
Investor Relations
The Company practices the investor-oriented concept, actively responds to investors' concerns, conducts investorrelations management through multiple channels, platforms and methods, provides investors with a platform to directlyunderstand the Company's dynamics, and actively conveys corporate strategies, operating results and future prospects,thereby enhancing investors' understanding and recognition of the Company. In addition, the Company has long attachedimportance to protecting the legitimate rights and interests of investors, especially small and medium-sized investors,creating opportunities and providing convenience for small and medium-sized investors to participate in activities, ensuringthe smooth ow of relevant communication channels, and avoiding selective disclosure of information.
In 2024, the Company held
investor exchange meetings, communicated with
investors, issued
announcements on investor relations and exchange records, and responded to
inquiries from Easy IR,addressing a total of
questions.
Key performance
Key performance
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportGovernance Foundation: Empowering Long-term Enterprise Development
Huabao Flavours & Fragrances is fully aware of the importance of information disclosure in maintaining the order of thecapital market and protecting the rights and interests of investors. In order to standardize the Company's informationdisclosure behavior and ensure the authenticity, accuracy, completeness, timeliness and fairness of the disclosed content,the Company has formulated the Management System for Information Disclosure and Investor Relationship to clarify thestandards and procedures for information disclosure, strengthen internal control and supervision mechanisms, and improvetransparency and quality of information disclosure.
On the premise of safeguarding the Company's daily operations and ensuring long-term development, in order to providecontinuous returns to shareholders, the Company, in accordance with the relevant provisions of the Company Law, theNotice Regarding Further Implementation of Cash Dividends Distribution of Listed Companies, the Regulatory Guidelinesfor Listed Companies No.3 - Distribution of Cash Dividends of Listed Companies, and the Articles of Association, has longadhered to a relatively high level of cash dividends. This practice allows all shareholders to share the Company's operationalachievements and development.Over the long term, the Company has focused on increasing both the frequency and amount of dividends to enhance marketcompetitiveness, optimize capital structure, and motivate management to improve e?ciency. This strategy also aims to boostinvestor condence, increase investment returns, and enhance the exibility of asset allocation. In April and October2024, the Company distributed cash dividends of RMB 250 million and RMB 74 million, respectively, totaling RMB 324million .
Information Disclosure
Protection of Shareholders' Rights and Interests
In 2024, the Company ensured that there were
nofalse records, misleading statements, or signicant omissionsin the disclosed information; the Company disclosed a total of
announcements and related disclosuredocuments, including
regular reports and
ad hoc announcements.
The Company strictly adheres to the Guidelines on Self-regulation of Listed Companies on Shenzhen Stock Exchange No.2- Standardized Operation of Listed Companies on the ChiNext Market, the Basic Norms of Enterprise Internal Control, andits supporting guidelines, which regulate the internal control of listed companies. Focusing on development strategy, theCompany continuously optimizes and improves the Comprehensive Risk Management Measures of Huabao Flavours &Fragrances Co., Ltd. It establishes a three-line risk management model, persistently advances risk identication, analysisand assessment, and assists in the adoption of risk response measures. While employing risk management strategies suchas acceptance, mitigation, transfer, and avoidance, the Company enhances operational e?ciency and e?ectiveness, andcreates and protects shareholder value.
Comprehensive Risk Management System
In today's complex and ever-changing business environment, risk management has become thecornerstone of sustainable development of enterprises. Huabao Flavours & Fragrances is well awarethat establishing a sound risk management system is crucial to ensuring the Company's stableoperation, safeguarding shareholders' interests and enhancing market competitiveness.
Risk Prevention and Control
The Overall Goal of the Company's Comprehensive Risk ManagementKeep risks within a range that aligns with the Company's development strategy and ismanageable;
Ensure authenticity and reliability in internal and external communication;
Guarantee compliance with national laws, regulations, and policies tomaintain lawful and compliant operations;
Enhance the e?ciency and e?ectiveness of business operations, reducinguncertainties in achieving objectives;
Establish a comprehensive risk management system aligned with the Company'soverall objectives to prevent signicant losses caused by catastrophic risks or humanerrors.
Key performance
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) ReportThree-line Model for Risk Management of Huabao Flavours & Fragrances
Work Flow of Risk Management
RiskManagementInformationCollection
RiskIdentication
RiskAssessment
RiskResponse
RiskManagementSupervisionandImprovement
Take the responsibilityand report
Delegate authority, provideguidance, and o?er resourcesand supervise
Maintain consistency, communicate,coordinate, and collaborate witheach otherLegend
Organizational governance body
Be responsible to stakeholders and assume supervisory responsibilities
Front-line functions
Provide products/services tocustomers; Managing risk
Second-line functions
Provide expertise, support,oversight and reasonablequestioning on risk-related
matters
Third-line functions
Provide expertise, support,oversight and reasonablequestioning on risk-related
matters
Functions of organizational governance body: integrity, leadership, and transparency
Internal control management is the front-line of defense for enterprise risk prevention and control, and plays an irreplaceablerole in ensuring asset security, improving operational e?ciency, and promoting compliant operations. The Company attachesgreat importance to the construction and improvement of internal control system, and has hired a professional internalcontrol consulting team to provide diagnosis and consulting services for the existing internal control system. It is committedto building an internal control network that covers the entire business process and runs through all aspects of decision-making, execution and supervision.
Internal Control Special Training
Internal Control Management
Tax Management
Case: Convening Special Internal Control Training to Continuously Improve InternalControl E?ectiveness
To strengthen the construction of the Company's internal control system and enhance the e?ectiveness of internalcontrol, in September 2024, Huabao Flavours & Fragrances, in collaboration with professional internal controlconsulting agencies, organized a kick-off meeting of the internal control system construction project and internalcontrol special training. The training covers multiple aspects, including the basic concepts of internal control, sharingof internal control cases, definition and classification of risks, methods and processes of core risk management,cooperation mechanism for project implementation, scope of internal control system construction and projecttimetable, to enhance employees' understanding of internal control management and promote the Company'ssustainable development.
The Company places a high priority on tax management, strictly adhering to national tax laws and regulations, and hasestablished a comprehensive tax management system to ensure the standardization and compliance of tax operations. TheFinance Department serves as the Company's primary responsible unit for tax management, coordinating the tax a?airs ofthe headquarters and all subsidiaries, including routine matters such as tax registration, ling, payment, and accounting.By conducting regular tax risk assessments and audits, the Company promptly identies and recties potential tax risks,ensuring the legality and e?ectiveness of tax management.Additionally, the Company actively applies for recognition as a high-tech enterprise and seeks preferential tax policies toreasonably reduce tax costs and enhance operational e?ciency. Furthermore, the Company focuses on the standardizedmanagement of tax records, ensuring the completeness and traceability of tax documentation. Through systematic taxmanagement, the Company consistently and e?ectively controls tax risks, providing a solid compliance foundation for itsustainable development.
Management
Take actions (including risk management) to achieve organizational goals
Internal auditIndependent conrmation service
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances firmly believes in the principle that sincerity is rewarded in humanrelations and trust in business. We are committed to conducting responsible business practicesaccording to the highest standards and maintain a zero-tolerance policy towards any form of fraud,bribery, and unfair competition. The Company has established a comprehensive business ethics systemand has obtained the ISO 37001 Anti-Bribery Management System certication, which clearly stipulatesthat all employees, their relatives, subsidiaries, and commercial partners must strictly comply with thelaws and regulations on anti-commercial bribery, anti-fraud, and anti-unfair competition in their dailybusiness activities. This ensures that there is no form of improper benefit transfer or misconduct inthe Company's global business operations, with the aim of jointly fostering a clean, healthy, fair, andtransparent business environment.
Note: The Company has acquired the renewed certicate in February 2025.
Business Ethics
Achievement of Anti-bribery Goals in 2024
Huabao Flavours & Fragrances obtained ISO 37001 Anti-Bribery Management System certication
Anti-bribery goalsAchievementsThe Company strictly adheres to all applicable anti-commercial bribery laws and regulationsin the locations where it operates, maintains a zero-tolerance policy towards corrupt
practices, and has achieved 0 bribery incidents throughout the year.
Achieved
Business Impact Analysis(BIA) and Risk Assessment
(RA)
Drills and tests
Business ContinuityStrategy and Solutions
Business Continuity
Plans and Procedures
The Business Continuity Management Approach of Huabao Flavours & Fragrances
In today's complex and ever-changing business environment, Business Continuity Plan (BCP) has become an important partof the Company's operations management. The Company attaches great importance to business continuity management.By establishing a sound business continuity management approach, it ensures that key business functions can be quicklyrestored in the event of emergencies or external shocks, thereby guaranteeing continuous services to customers andstakeholders. The Company has formulated the Management Procedure for Business Continuity Plan ManagementProcedures, Incident and Emergency Response Management, Business Impact Analysis and Risk Assessment ControlProcedures, and Business Continuity Strategy Management Procedures. It also has detailed emergency plans and conductsregular drills and risk assessments to ensure that potential risks are e?ectively identied and controlled.
Business Continuity Management and Plan
By implementing the business continuity plan, the Company can effectively reduce the impact of unforeseen events onbusiness operations, enhance overall risk resistance, and further ensure the Company's sustainable development andmarket competitiveness.
Case: BCP Training and System Construction of Jiangxi H&K
In order to meet the standards of international companies, Jiangxi H&K has independently completed training relatedto BCP (Business Continuity Plan) and established a comprehensive set of system documents. These documentscover core aspects such as business activity identication, business impact analysis, risk assessment, and businesscontinuity strategy. This initiative ensures the continuous and stable operation of the Company and provides strongassurance of supply capabilities to overseas customers, enhancing their trust and the stability of the Company'sbusiness operations.
Operational planningand control of BCMS(Business ContinuityManagement System)
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
The Company attaches great importance to anti-fraud and anti-bribery control in all business management activities,and has formulated management systems such as the Anti-Bribery Management Manual, Anti-Fraud and Anti-BriberyManagement Measures, Working Rules for Anti-Fraud and Anti-Bribery Working Group, Gift Acceptance and DonationRules, and Prohibition of Private Agreement Rules. It has also established Anti-Fraud and Anti-Bribery Leadership Groupand Anti-Fraud and Anti-Bribery Working Group led by the Board of Directors, which are responsible for supervising andimplementing anti-fraud and anti-bribery policies, and promptly investigating and handling any suspected commercial briberyactivities.
Responsible for overseeing the creation of an anti-fraud and anti-bribery culturalenvironment across the Company by the Anti-Fraud and Anti-Bribery LeadershipGroup, establishing a robust internal control system to prevent fraud and bribery,and continuously monitoring the Company's anti-fraud and anti-bribery e?orts.
Responsible for building and maintaining the internal control system for anti-fraud and anti-bribery, ensuring sustained resource allocation, and providingnecessary guidance and support to ensure its e?ective operation.
Responsible for executing daily anti-fraud and anti-bribery tasks at theCompany and subsidiary levels.Responsible for implementing specic anti-fraud and anti-briberytasks within their own departments/subsidiaries.
Anti-Commercial Bribery and Anti-Fraud
The Anti-Commercial Bribery and Anti-Fraud Management System Structure of Huabao Flavours & Fragrances
Board ofDirectors
Five Working Principles of Anti-Fraud and Anti-Bribery Working Group
Comprehen-
sivenessPrinciple
ProportionalResponsibilityPrinciple
Condentiality
Principle
Independent
JudgmentPrinciple
Sensitive
Relationship
RecusalPrinciple
Establish a comprehensive anti-fraud and anti-bribery management frameworkwith dedicated personnel, ensuring full coverage of all regulatory and investigativestages aligned with business operations, workflows, and departmentalresponsibilities.
Clearly define and allocate authority and accountability for anti-fraud and anti-bribery oversight across the Board of Directors, Leadership Group, Working Group,departments, subsidiaries, employees, and external teams, ensuring all partiesbear responsibility for misconduct within their purview.
During anti-fraud and anti-bribery regulatory investigations, the Working Groupmust strictly maintain condentiality regarding whistleblower identities, investigationplans, progress updates, and case details. All case-related documents andmaterials must be properly secured. Disclosure of such information to unauthorizedpersonnel is prohibited, and non-investigative personnel are barred from inquiringabout these matters.
During anti-fraud and anti-bribery regulatory investigations, members of theLeadership Group and Working Group must strictly base their actions on factualevidence, conduct independent investigations, and form decisions accordingly. TheWorking Group operates independently, reporting directly to the Leadership Groupand Board of Directors. Functional departments are prohibited from interveningin regulatory investigations or o?ering opinions unless explicitly requested by theWorking Group to assist in such e?orts.
During anti-fraud and anti-bribery investigations, any investigators, assistingpersonnel, or department heads with familial ties, close friendships, sharedbusiness investments, or other relationships to the subject under investigationthat could compromise impartiality must immediately submit a written report to theregulatory authority and voluntarily recuse themselves upon the Working Group'sdesignation of an investigation/response team.
The Company clearly denes the boundaries of employee conduct, requiring all employees not to accept, o?er, or participatein any form of bribery, kickbacks, illegal transactions, or other improper exchanges of benets. Additionally, the Companycomprehensively regulates the behavior of commercial partners, ensuring that all business dealings and cooperativerelationships adhere to principles of fairness and transparency, avoiding any actions that could lead to conicts of interest ora?ect the impartiality of decision-making.
Anti-Fraud andAnti-BriberyLeadership Group
Functional Departments and Subsidiaries
of the Company
Anti-Fraud and Anti-BriberyWorking Group of the Company
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
1. New employees must sign an Integrity and
Self-Discipline Commitment alongside theiremployment contract.
2. Employees are strictly prohibited from
engaging in any acts dened as "fraud" or"bribery" under the Company's Anti-Fraud andAnti-Bribery Policies.
3. Senior executives, department heads, or
other personnel designated by the LeadershipGroup must undergo a special exit audit uponresignation.
4. The Company shall conduct background
checks on candidates for senior executive roles,department heads, or other personnel designatedby the leadership team prior to appointment.
5. Employees must undergo regular integrity
performance evaluations within their departments.For department heads and leadership, incidentsof fraud or bribery within their teams or involvingexternal commercial partners will directly impacttheir evaluation scores.
1. The relevant department must conduct
background checks on commercial partnersbased on business type and collaboration scope.
2. Relevant company departments must conduct
compliance evaluations of commercial partnersboth before establishing cooperative relationshipsand throughout the duration of such partnerships,with the evaluation results serving as a criticalbasis for determining commercial partnerqualication status.
3. Commercial contracts with clients, suppliers,
service providers, or contractors must includeexplicit integrity clauses or be supplemented bystandalone integrity agreements.
4. The Working Group must establish a dynamic
monitoring mechanism for commercial partnersto streamline selection and retention.
5. For commercial partners with unique
circumstances or requirements, the Company'santi-fraud and anti-bribery commitments must beincluded as mandatory attachments to bids orcontracts.
Basic Requirements for EmployeeManagement
Basic Requirements for CommercialPartner Management
Additionally, the Company has established the Anti-Fraud, Anti-Bribery, and Reporting Management System. All employeesand commercial partners are encouraged to report any known instances of fraud, bribery, or any improper conduct andsuspicious activities related to the Company's operations through the following channels. At the same time, the Companyexplicitly states in the system that the identity and personal information of the reporter will be kept strictly condential, andwe absolutely do not tolerate any form of retaliation against the reporter or against those who refuse to participate in actionsthat violate this system. Within its authority, the Company ensures that the reporter and the investigators will not sufferretaliation or any form of discrimination, opposition, or other adverse e?ects due to their reporting actions.
Upon evaluation, the risk level for production line workers is deemed to berelatively low, and as such, coverage has not yet been extended to them.
IndicatorUnit202220232024Number of employees who signedintegrity commitment letters
NA799844887Percentage of employees who signed
integrity commitment letters
%657072Number of suppliers who signed integrity
agreements
NA514540558Percentage of suppliers who signed
integrity agreements
%929292
Signing Status of the Integrity Commitment Letter and Anti-Bribery Commitment LetterBasic Control Requirements for Anti-Fraud and Anti-Bribery of Huabao Flavours & Fragrances
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Report to immediate supervisors. If themisconduct involves the immediatesupervisor, bypass them and escalateto higher-level personnel.Report directly to members of theCompany's Anti-Fraud and Anti-BriberyLeadership Group or Working Group.
Report Hotline:
021-67083261
Report Website: Huabao Flavours & Fragranceswebsite - Integrity Huabao - I want to report(http://180.166.253.249:8006/report.aspx)
Mailing Address: Anti-Fraud and Anti-Bribery WorkingGroup, Huabao Flavours & Fragrances Co., Ltd., 1299Yecheng Road, Jiading District, Shanghai
Report Email:
jubao@hbavor.com
Reporting Channels
In order to further enhance the compliance and risk resistance of the Company in its business operations, the Companyconducts business ethics risk audits regularly or irregularly to comprehensively assess the adequacy and effectivenessof the Company's anti-bribery management system. The audit team conducts in-depth reviews of procurement, sales,partnerships, financial operations and other aspects to identify potential violations and management loopholes. Oncepotential problems are discovered, the audit team will immediately communicate with relevant departments to jointly analyzethe causes and formulate corrective measures.
The Company advocates always upholding high standards of ethical conduct in decision-making and actions, encouragingemployees to make correct judgments when facing complex situations. To this end, the Company regularly conductsspecialized business ethics training to foster a deep understanding among employees at all levels of professionalism,transparency, integrity, and fairness. This aims to establish good professional ethics and behavioral norms of integrity self-discipline, diligence and dedication.
Business Ethics Risk Audit
Business Ethics Training
Review Report of Anti-Bribery Compliance Function (2024)
Governance Foundation: Empowering Long-term Enterprise DevelopmentHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Additionally, the Company regularly conducts anti-commercial bribery and anti-fraud training for commercial partners.Through these training sessions, commercial partners gain a thorough understanding of the Company's specic policies andrequirements regarding anti-fraud. This also e?ectively strengthens their ability to identify and prevent business ethics risks,ensuring compliance and legality in the process of cooperation between both parties.
IndicatorUnit2024Number of anti-commercial bribery and anti-fraud training sessions conductedTimes2Total number of directors covered by anti-commercial bribery and anti-fraud trainingNA9Percentage of directors covered by anti-commercial bribery and anti-fraud training%100%Total number of management personnel covered by anti-commercial bribery and anti-fraud trainingNA30Percentage of management personnel covered by anti-commercial bribery and anti-fraud training%100%Total number of employees covered by anti-commercial bribery and anti-fraud trainingNA1,225Percentage of employees covered by anti-commercial bribery and anti-fraud training%100%
Business Ethics Training Performance
Case: Conducting Special Training to Improve Employees' Anti-Fraud and Anti-Bribery AwarenessIn September 2024, Huabao Flavours & Fragrances organized its annual specialized training on anti-fraud andanti-bribery. The training was delivered through a combination of offline and online sessions to all employees atthe company’s headquarters. It provided an overview of the theories of fraud and bribery, presented typical cases,reviewed relevant laws and regulations, and introduced Huabao Flavours & Fragrances’ anti-fraud and anti-briberymanagement system and practices. This initiative aimed to enhance employees' ability to identify and preventfraudulent and bribery behaviors, ensuring the compliance and transparency of the company’s operations whilesafeguarding its reputation and long-term development.
2024 Anti-Fraud and Anti-Bribery Training
Case: Conducting Annual Training for Commercial Partners to Jointly Build a CleanBusiness EnvironmentIn January 2024, Huabao Flavours & Fragrances conducted annual o?ine training for its commercial partners coveringthe topics of anti-fraud and anti-bribery, publicizing the concepts and forms of fraud and bribery, as well as themanagement system for anti-fraud and anti-bribery. Through this training, the Company not only successfully conveyedto its commercial partners its rm determination and condence in combating corruption and building a united frontagainst it, but also fostered a closer and more solid cooperative relationship between both parties based on integrity.
The Company strictly abides by the Anti-Unfair Competition Law, the Anti-Monopoly Law and other relevant laws andregulations, resolutely opposes all acts of unfair competition, and does not adopt unfair means such as false propaganda,commercial bribery and infringement of commercial secrets to gain competitive advantages. The company has establishedthe Antitrust Compliance Management Measures to dene compliance requirements for business operations and employeeresponsibilities. It conducts compliance reviews on transaction agreements, market behavior, and competition strategiesto ensure regulatory adherence and e?ectively mitigate antitrust compliance risks. At the same time, before engaging incooperation with all commercial partners, the Company signs the Integrity Agreement and the Integrity Commitment Letterwith them, which clearly stipulate that the business cooperation process must comply with the provisions of the Anti-UnfairCompetition Law, jointly maintaining a fair, just, and transparent market competition environment.
Anti-Unfair Competition
In 2024, the Companyhad not been involved in litigation/administrative penaltiesf or anti-unfair competition.
Key performance
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
The Company has established a well-designed Product Quality Traceability Management Procedures to maintain detailedrecords of the entire production process, including the receipt of raw and auxiliary materials, workshop production, nishedproduct warehousing, and nal delivery, ensuring full traceability and transparency.Huabao Flavours & Fragrances has always adhered to the quality policy of "Quality First, Pursuing Excellence", rigorouslyimplementing the requirements of GB/T 19001-2016 and ISO 9001: 2015 quality management systems. The Company hasformulated Quality Manual, Internal Quality System Audit Procedures, Product Quality Traceability Management Procedures,Non-conforming Output Control Procedures and other systems. These measures enable full-process monitoring,from technology development to product realization and quality testing, ensuring that product quality meets customerrequirements on a consistent basis.
In addition to Huabao Flavours & Fragrances, Huabao Flavours & Fragrances Shanghai, Xiamen Amber, Jiangxi H&K,Shanghai Yifang, Yunnan Tianhong, Guangzhou Huafang, Guangzhou Owada, and Yingtan Huabao have all obtained ISO9001: 2015 quality management system certication.To implement quality management e?ectively, the Company has established a exible and hierarchical quality managementstructure. Under this overarching framework, each subsidiary or branch independently develops and refines its ownquality management system based on its business characteristics and operational needs. Each subsidiary or branch hasa dedicated quality management department or role responsible for formulating quality policies and objectives that areappropriate for its actual situation, ensuring the establishment, implementation, and continuous improvement of processesrequired by the quality management system. This approach comprehensively improves the Company's overall qualitymanagement level.
Quality Risk Control
Quality Assurance
Selected Quality ManagementSystem Certication Certicates of Huabao Flavours & Fragrances, Jiangxi Yifang, Jiangxi H&K
Product Quality Traceability Management Process
IndicatorUnit202220232024
Product Qualication Rate%100100100
Product Recall Rate%000
In 2024, the Companyhad
nomajor safety or quality incidents related to its products or services.
PurchasingDepartment
WarehouseProduction
Workshop
Quality Control
Department
RelatedIdentications
Purchase Order
Picking Production
Incoming MaterialInspection, Issuanceof InspectionIdentications
SamplingInspection, Issuanceof InspectionIdenticationsWarehousing andPlacement
TraceabilityImplementation
TraceabilityImplementation
TraceabilityImplementation
TraceabilityImplementation
ProductionStatusIdentication
Division of Areas
Certicate ofConformity, Non-Conformance
Certicate,
Concession
Acceptance
ProductionStatus
Identication
Shipping Label,Barcode Label,Non-Conformance
Identication
The relevantdepartments ofthe Company canimplement traceability
Incoming Material
Placement
Key performance
| Certificate CN19/20345 | |
| The management system of | |
| Jiangxi H&K Food Technology Development Co., Ltd. |
Business Registration Address: No. 6, Leye Road, Longgang Industrial Park, High-techIndustrial Development Zone, Yingtan City, Jiangxi Province, P.R. China
| Business Registration Address: No. 6, Leye Road, Longgang Industrial Park, High-tech Industrial Development Zone, Yingtan City, Jiangxi Province, P.R. China | ||
| Business Operation Address: No. 6, Leye Road, Longgang Industrial Park, High-tech Industrial Development Zone, Yingtan City, Jiangxi Province, P.R. China | ||
| has been assessed and certified as meeting the requirements of | ||
| ISO 9001:2015 | ||
| For the following activities | ||
| Manufacture of food flavors include liquid flavors, emulsion flavors, paste flavors and powder flavors (blended and encapsulated) | ||
-solid
| compound seasoning sauce | |
| This certificate is valid from 03 March 2025 until 02 March 2028 and remains valid subject to satisfactory surveillance audits. | |
| Issue 4. Certified since 03 March 2019 | |
| Authorised by | ||||||||
| Business Manager | ||||||||
| SGS United Kingdom Ltd | ||||||||
| t +44 (0)151 350-6666 - www.sgs.com | ||||||||
| The certification information can be verified on the web site of Certification and Accreditation Administration of the People’s Republic of China www.cnca.gov.cn | ||||||||
| This document is an authentic electronic certificate for Client’ business purposes use only. Printed version of the electronic certificate are permitted and will be considered as a copy. This document is issued by the Company subject to SGS General Conditi | ||||||||
ons of certification services available on Terms and Conditions | SGS. Attention is drawn to the limitation of liability,
ation, forgery or falsification of the content or appearance of
| this document i |
s unlawful.
| Page 1 of 1 | ||
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Lean management is an important means for the Company to enhance efficiency, stimulate vitality and build corecompetitiveness. Across the organization, the Company actively implements the lean production management concept,continuously improves its lean production management system, raises management levels, and ensures the orderlyimplementation of lean production work. The Company continues to encourage employees to participate in continuousimprovement activities, put forward improvement project proposals, and use innovative thinking and scientic methods toeliminate waste, improve resource utilization e?ciency, and jointly drive the transformation of production methods towardgreater efficiency and sustainability. This approach not only increases productivity but also improves the Company'scompetitiveness.
Furthermore, during the production process, strict treatment procedures are adopted for any nonconforming products,including finished products, re-inspected products, or outgoing products that fail to meet the Company's inspectionstandards. Through this series of management and control processes, the Company not only effectively prevents andreduces potential quality risks, but also ensures product consistency and compliance, thereby significantly increasingcustomer trust and satisfaction.
Furthermore, to ensure that products with corporate logos can enter the investigation procedure as e?ectively, quickly, andcompletely as possible when recalled from the market at any time, the Company has developed the Notication and RecallControl Procedures. It analyzes the collected information on nonconforming products using the Nonconforming ProductControl Procedures, assesses the extent of potential public health risks, and determines the scope and depth of recalls.In the event of a voluntary or involuntary product withdrawal or recall, the Company promptly communicates all relevantinformation to a?ected customers.
Lean Production
Category II Nonconforming Products (Finished Products, Outgoing Products,or Re-Inspected Products Failing Internal Inspection Standards) Treatment Process
Lean Production Initiatives at Jiangxi H&K
Establish a lean production organization and management body, clarifythe division of labor, and implement responsibilitiesOrganization and
ResponsibilityImplementation
Optimize working time and process managementOptimize production process nodes and reduce waiting timeReduce the man-hours per batch of productionIncrease the number of production batches
ProductionE?ciencyImprovement
Analyze sales performance and formulate inventory preparation plansMake reasonable production plansImprove inventory turnover and revitalize Hold/Quarantine raw materialsAvoid inventory wasteInventoryManagement andProduction Planning
Intermediate and semi-nished product storage solutionReplace the product storage barrel material to extend the service lifeand improve stabilityImprove product quality and save production costsLean ProposalImprovement
Promote lean production concepts and enhance employee awarenessUse visual display boards in workshops, canteens, offices and otherplacesEnhance employees' initiative and self-motivation in lean managementparticipation
Visual Management
Responsible for lling out the NonconformingProduct Treatment Opinion Form, and reviewedby dedicated personnel.
Propose the process treatment solution. If necessary, theR&D personnel shall be notied to propose a technicaltreatment solution or conrm that no technical treatmentis feasible. For temporary formula modications, relevantpersonnel shall issue an Interim Flavor BenchmarkFormula. All treatment solutions or opinions shall bereviewed by the respective department manager.
If commercial considerations arerequired, the related departmentprovides treatment opinions.The General Manager or authorizedpersonnel shall review the abovetreatment opinions and approve theProduction Rework, ConcessionRelease or Hold/Quarantine.
For Concession Release, the relevantdepartment annotates "ConcessionRelease" on the relevant inspectionrecords, issues the inspection result ofConcession Release, and sends a copyof the Nonconforming Product TreatmentOpinion Form to the production workshopor the warehouse.
For Hold/Quarantine, the relevantdepartment issues a nonconforminginspection result and sendsa copy of the NonconformingProduct Treatment Opinion Formto warehouse or segregatedstorage. The warehouse initiatesthe scrap approval procedure at anappropriate time.
Keep the original NonconformingProduct Treatment Opinion Formand the dedicated personnelcoordinates the subsequenttreatment.
For Production Rework, theproduction unit reworks the productaccording to the approved processtreatment solution or technicaltreatment solution, and reports itfor standard inspection. If qualied,it is classied as conforming.If unqualied, it re-enters thenonconforming product controlprocedures.
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Case: Yingtan Huabao Launched Lean Management
In April 2024, Yingtan Huabao held a lean production management kick-off meeting, marking the full launch ofits lean management initiative. This e?ort aims to enhance production e?ciency, reduce costs, and solidify corecompetitiveness. By forming a lean management working group and signing the Lean Management CommitmentLetter, the Company engages all employees in driving the implementation of the lean production concept. Thisinitiative will optimize production processes, eliminate waste, and raise management levels, which helps YingtanHuabao better respond to market demands, improve product quality, support Huabao Flavours & Fragrances'internationalization strategy, and strengthen the Company's long-term competitive advantage.
Yingtan Huabao Lean Production Management Kicko? Meeting
Since its establishment, Huabao Flavours & Fragrances has always adhered to the consumer service concept of customerrst. To deliver high-quality services and safeguard customer interests, the Company has formulated management systemsand procedures, including the After-Sales Management System, Customer Communication Control Procedure, CustomerSatisfaction Evaluation Procedure, Corrective and Preventive Measures Procedure, and Risk and Opportunity ResponseControl Procedure. These protocols apply to both the Company and its subsidiaries, systematically strengthening customerservice management across all operations.The Company clearly denes the responsibilities of its Technical Center, Marketing Center, and Operations Service Center.The Operations Service Center is responsible for assessing customer satisfaction and handling customer complaints.Non-product-related complaints are investigated and verified by relevant departments, while product-related complaintsare handled by customer service through information gathering and collaboration with the Quality Control Departmentand Technical Center. This operational framework enables the Company to provide premium customized products whilemaintaining service excellence through rapid, coordinated responses to diverse customer needs for its products.
Customer ServiceVisual Display Board for Lean Production at Jiangxi H&K
Customer FirstProfessional and
Highly E?cient
Listening to Needs andInnovative Experience
ContinuousImprovementAlways put the customerrst, and commit tounderstanding andmeeting their needsin order to provide anexceptional serviceexperience.
Our team has extensiveprofessional knowledgeand skills, and they canquickly and accuratelysolve consumers'problems and needs toensure e?cient service.
Deeply understandconsumers' needsand desires, and thenuse innovative servicethinking to provide themwith a unique serviceexperience that meetstheir increasingly diverseneeds.
We use customerfeedback to drive serviceimprovements. We areconstantly improving ourservice level by collectingand analyzing feedbackand optimizing ourservices on an ongoingbasis.
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
In terms of the product recall procedure, to ensure that products with corporate logos can enter the investigationprocedure as effectively, quickly, and completely as possible when recalled from the market at any time, the Companyhas developed the Notication and Recall Control Procedures to clarify the division of responsibilities of each department.Product identication allows the Company to trace the product's production date or batch number. At the same time, it hasestablished a product identification system for all packaging and analyzes the collected information on nonconformingproducts using the Nonconforming Product Control Procedures, assesses the extent of potential public health risks, anddetermines the scope and depth of recalls. In the event of a voluntary or involuntary product withdrawal or recall, theCompany promptly communicates all relevant information to a?ected customers.The Company always prioritizes customer satisfaction and product quality, attaches importance to product quality andsafety control, ensures that the products produced meet the relevant national and industry standards, veries, handles andresolves any customer complaints as soon as possible, and is committed to providing customers with high-quality productsand excellent after-sales service.
A customer complainsthat a product providedby the Company isnonconforming
The customer servicesta? records the customername, complainant, time,complaint content, andso on in the CustomerComplaint Handling Form
The related departmentleads in the investigation,testing, and vericationin accordance with theCustomer ComplaintHandling Form, and thenreleases the investigationprocess and conclusions
If the product is conforming,the customer service sta? willcoordinate and communicatewith the customer. If the productis nonconforming, the GeneralManager or authorized person willissue instructions and arrange forbusiness sta? to handle it, whileincluding it in the nonconformingproduct handling procedure.
In 2024, customer satisfaction was
95.87%
.
By proactively providing product upgrades and innovative solutions to its rapidly developing customers, Huabao Flavours &Fragrances has achieved tangible results from its diversied market segmentation strategy. The diversied development ofavors and categories such as catering channels, functional beverages, and snacks has driven the demand growth for foodavorings and ingredient solutions. Through this process, the Company continuously accumulates and enhances the corecompetitiveness of its business areas, providing customers with one-stop innovative products and services. This strategicshift from "product designer and manufacturer" to "solution provider" allows the Company to seize the initiative in competitionand development and lead the new direction of the industry's development.Based on market demand, the Company deeply explores emerging trends, technologies, and sectors in the development ofthe domestic and foreign avor industry. It is constantly optimizing its product portfolio to accelerate upgrades to customers'existing products, thereby increasing their market penetration rates. At the same time, the Company capitalizes on theopportunity of consumption transformation by leveraging consumer insights to identify new market opportunities for clients.Through integrated solutions, the Company expands into new product and business markets. By continuing to improve itscore product structure and diversify product lines, the Company meets the diverse needs of its customers, consolidates itsindustry leadership position, and increases its core competitiveness.
Product Availability
After-sales Service System Certication Certicate
Huabao Flavours & Fragrances Customer Handling Procedures for Customer Complaints Related to
Nonconforming Products
Key performance
Green,
Nutritious and
Healthy
Collaborative Win-Win: Building an Excellent Quality Production LineHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances regards supply chain management as an important cornerstone of sustainable development.It builds a transparent, efficient and responsible supply chain system through rigorous access, evaluation and exitmechanisms. The Company evaluates suppliers based not only on product quality and cost but also on environmentalcompliance, occupational health and safety, labor human rights protection, and other factors. This approach encouragesboth upstream and downstream supply chain participants to practice the concept of sustainable development collaboratively.At the same time, the Company strengthened the transparent procurement mechanism by requiring procurement personnelto sign the Employee Integrity and Self-Discipline Commitment Letter and sign the Integrity Agreement with suppliers,ensuring the fairness and transparency of the procurement process. Through systematic and standardized supply chainmanagement, Huabao Flavours & Fragrances leads the industry towards a higher standard of responsible supply chainsand contributes to the creation of a sustainable industrial ecology.
Supply Chain Management
The Company selects suppliers through inquiry, competitive negotiation, bidding or single-source procurement. In principle,qualied suppliers and procurement prices are determined by comparing at least three suppliers based on material costanalysis. The Procurement Department is responsible for screening potential suppliers and identifying candidate suppliersthrough evaluating samples, and conducting on-site assessments (applicable to certain raw materials). The nal approvalstrictly adheres to established protocols, and a supplier directory is maintained. To guarantee supply chain stability, theCompany initiates a backup supplier development process when existing suppliers are unable to supply goods, thusensuring supply chain continuity and reliability.The Company imposes strict requirements on supplier admission and evaluation, reviewing their qualifications such asenvironmental management system certication, examining their compliance with environmental regulations, environmentalmonitoring compliance, records of environmental administrative penalties, integrity and probity records, nancial stability,and tax compliance, as well as screening for negative risks such as money laundering and monopoly, to ensure no majorillegal records within the past three years.Meanwhile, the Company's commercial contracts must be accompanied by the Employee Integrity and Self-DisciplineCommitment Letter and the Integrity Agreement, and suppliers are required to sign the Environmental, Occupational HealthSafety, and Labor Human Rights Commitment Letter, fullling their responsibilities in environmental protection, occupationalhealth and safety, as well as labor and human rights. Suppliers must employ workers legally, eliminating child labor, forcedlabor, and discrimination, safeguarding rights such as compensation, benets, and vacations, maintaining employee physicaland mental health and occupational safety, and respecting internationally recognized human rights standards. Additionally,suppliers must comply with the company's relevant rules and regulations and accept irregular supervisory inspections.
Supplier Access
Huabao Flavours & Fragrances has established a supervision and evaluation mechanism to regularly evaluate theperformance and compliance of suppliers. This helps identify and resolve potential issues promptly, ensuring suppliersconsistently deliver high-quality products and services. The Company encourages suppliers to continuously improve theirservice levels through an incentive mechanism that involves granting priority purchasing rights.
Huabao Flavours & Fragrances strictly controls the supplier exit process. Suppliers who fail to meet evaluation standardseven after rectication, disrupt normal material supply, or experience major quality or safety incidents will have their qualiedsupplier qualications revoked. When the qualication is revoked after approval, Huabao Flavours & Fragrances and itssubsidiaries' procurement departments will immediately remove the supplier from the Qualied Supplier Directory and eitherselect a backup supplier or develop a new supplier.
Under the leadership of the Company's anti-fraud leadership group, all relevant personnel responsible for procurementacross the Company's departments and subsidiaries are required to sign the Employee Integrity and Self-disciplineCommitment Letter, and suppliers are required to sign the Integrity Agreement. This is done to improve internal control in theprocurement process, prevent fraudulent activities, and ultimately create a long-term, robust, and sustainable supply chainecosystem.
The Company adheres to the principles of fairness and impartiality, treating all partners, including small and medium-sizedenterprises (SMEs), equally. It strictly complies with legal and regulatory requirements to ensure the compliance of supplychain cooperation. During the reporting period, the Company did not encounter any instances of overdue payments toSMEs.
Supplier Evaluation
Supplier Exit
Transparent Procurement
Equal Treatment of SMEs
SupplierSupplier Annual Evaluation RequirementsCategory A SuppliersEvery year, the Company's procurement department must conduct a written evaluation.Category B Suppliers
Every two years, Huabao Flavours & Fragrances and its subsidiaries' procurement
departments must conduct a written evaluation. If the materials supplied posesignicant environmental, social, or quality risks, an on-site evaluation is required.Excellent suppliers with evaluation results ≥85 will be given priority in procurement, and unqualied suppliers withevaluation results <70 will have their supplier qualications revoked by Huabao Flavours & Fragrances and its
subsidiaries' procurement departments after approval.
Huabao Flavours & Fragrances Supplier Evaluation Requirements
By 2024,92% of suppliers signed the Integrity Agreement.
Procurement Demand Identication
Contract Signing and Order
PlacementSupplier Qualication Review
Order TrackingSample Request and Evaluation
Assisting Quality Control and Warehouse
in Completing Inventory ReceiptSupplier Selection and Price
Negotiation
Invoice Verication and Payment
SubmissionBudget Preparation
Procurement File Archiving
Key performance
Huabao Flavours & Fragrances Procurement Workow
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
In strict compliance with environmental protection laws, regulations and system requirements, HuabaoFlavours & Fragrances has established a complete environmental management system, and compiledthe environmental chapter in the Environmental and Occupational Health and Safety ManagementManual, as well as internal rules and regulations such as the Eight Provisions on EnvironmentalProtection, providing solid institutional support for the environmental management of the Companyand its subsidiaries. On this basis, the Company has established a full-time safety and environmentalmanagement organization, fully responsible for core tasks such as safety, environmental protection andre management to ensure the e?ective operation of the environmental management system. During thereporting period, the Company did not incur any signicant administrative penalties or criminal liabilitiesfrom environmental events imposed by relevant environmental authorities.For the purpose of further improving the level of environmental management, the Company hassuccessfully passed the energy management system, environment and occupational healthmanagement system and other certications and obtained corresponding certicates. As of the end ofthe reporting period, Huabao Flavours & Fragrances, Shanghai Branch, Yingtan Huabao, GuangzhouHuafang, Yunnan Tianhong, and Guangzhou Owada have passed the ISO 14001 environmentalmanagement system certication and formulated a series of control procedures in accordance with thesystem requirements. Through identication, prevention, correction, monitoring and other methods, theyhave reduced the impact of operations on the environment in a comprehensive and multi-dimensionalmanner, and put the concept of sustainable development into practice with practical actions.
Environmental Management
Selected ISO 14001 Environmental Management System Certications:
Huabao Flavours & Fragrances, Shanghai Branch and Yingtan Huabao
Environmental Management Goals and ProgressEnvironmental management objectivesIndicatorAccomplishment
Complete waste sorting and treatment100% recycling of hazardous waste
AccomplishedFire preventingThe number of res is 0Energy resource consumption reduction
The average annual consumption of water,electricity and fuel per unit of output notexceeding the consumption in the previous yearUp-to-standard discharge of sewage from
wastewater treatment plant
Sewage from wastewater treatment plant meetsstandard requirements after treatmentUp-to-standard emission of boiler exhaust
Boiler exhaust meets the emission standards forClass II areas in Period II of GB 13271
The Company systematically analyzed the geographical location and surrounding environment of each factory area, carriedout environmental risk identication and assessment, and formulated risk prevention measures for identied risk factorssuch as re and explosion, accidental emissions of waste gas, and accidental emissions of wastewater. The Company hasprepared emergency plans for various natural disasters and emergencies, and established a complete accident emergencysystem, covering the clarication of the responsibilities of department heads, emergency material management, rescue teamformation, scenario analysis of various possible sudden environmental events, employee training, regular safety inspections,and the establishment an emergency rescue system of "activating plans, organizing evacuations, treating the wounded,maintaining contact, and arranging life", so as to effectively reduce hazards and ensure the Company's production andoperation.
Environmental Risk Assessment and Emergency Plan
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Leakage, reand explosionaccidents
Productionequipment area
Improper collection of waste gasgenerated during the production processcauses waste gas concentration in theworkshop to reach the limit, causing harmto personnel health;Fire or explosion caused by lightning,static electricity, collision, man-made resource or production operation error;
Risk prevention and control:
directly sent to the wastewaterconditioning tank through theditch.Emergency resources: rehydrants and re extinguishersinstalled inside and outsidethe workshop; All employeeare equipped with personalprotective equipment;
Chemical
warehouse
Due to the leakage of liquid materials,ethanol spontaneously combusted,resulting in a re accident;
Environmentalrisk prevention
and controlmeasuresfail or are notoperatingnormally
Rainwaterpipes are notblocked in time
When a re occurs, the re tail waterows into the rainwater pipe network. Ifthe rainwater pipe is not blocked in time,the re tail water will ow into the nearbyriver through the rainwater pipe network,polluting the water body and endangeringaquatic organisms and plants;
Risk prevention and control: theEmergency Management O?ceregularly inspects emergencysupplies;
Failure ofexhaust gas
collection
facilities
When the exhaust gas purication andrecovery device fails, the exhaust gasgenerated during the production processcannot be collected and treated, butescapes into the workshop, causingthe concentration in the workshop toexceed the limit, causing physical harm topersonnel;
Stop operation and conductrepairs in time;
Failure ofsewagetreatment and
discharge
measures
When the sewage station's various tanksand storage boxes are damaged and leak,sewage may ow into the rainwater pipenetwork through the roadside rainwatercollection wells. If not properly handled,when it rains, it will ow out of the factoryboundary together with the rainwater andpollute the surrounding water bodies;
Stop operation, stop draining,and perform repairs in time;
Various naturaldisasters,
extremeweather oradversemeteorological
conditions
Take rainstormweather as anexample
There was a sudden rainstorm andthe rainfall lasted for a long time. Theemployees failed to report the situationin the factory to the Emergency RescueCommand in a timely manner as theydid not foresee the change in thesituation. Water accumulated in thefactory and the water level reached acertain height in the workshop. The ooddestroyed the material yard or productionfacilities, which may cause materialleakage. The leaked materials weredischarged into nearby water bodies withrainwater, polluting the environment andendangering aquatic life.
All materials are stored indoorsand rainwater pipes areinstalled in the factory area.
Accident typeScenario analysis
Risk prevention and control
and emergency resourcesJiangxi Yifang's Emergency Environmental Risk Ass essment and Response
Case: Guangzhou Huafang Organized Annual Fire Drill
In November 2024, Guangzhou Huafang, a subsidiary of Huabao Flavours & Fragrances, conducted a fireemergency drill. At the beginning of the drill, all drill working groups quickly arrived at their locations, and in theworkshop, stairwells and emergency exits, the evacuation command team in the shortest possible time, usedcommands and gestures to direct employee to evacuate in an orderly manner along designated routes. Aftergathering, all employee carefully learned the classication and use of re extinguishers, re-ghting precautions,and analysis and explanation of recent re cases, and conducted practical re-ghting drills. The emergency plandrill achieved the expected goals, the emergency plan was reasonable and e?ective, and any non-standard aspectswere corrected on site in a timely manner.
Fire Extinguisher Practice Drill
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
As the common and only habitat for mankind, the Earth is facing multiple interrelated crises suchas climate change, environmental pollution and loss of biodiversity. Huabao Flavours & Fragrancesdeeply recognizes the urgency of the climate crisis and the necessity of participating in global climategovernance. While considering the risks brought by climate change, it also considers the opportunitiesthat responding to climate change will bring to its development. Referring to the International FinancialReporting Sustainability Disclosure Standard No. 2 - Climate-related Disclosures, the Self-RegulatoryGuidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report(For Trial Implementation) and other cutting-edge domestic and international standards on climateinformation disclosure, the Company monitors its business environment, operating conditions and theimplementation of risk response measures in a bid to identify various risks and provide early warnings,thereby enhancing its own climate resilience.
Climate Response
Actively responding to the country's "dual carbon" strategic goals, the Company formally established the ESG climateproject working group in 2024, and fully launched the ESG climate risk management project to systematically enhance itsresponsibility for environmental protection and climate governance. The working group is responsible for formulating annualclimate risk management action plans and implementation plans, coordinating the collection of climate-related informationand data analysis, conducting in-depth assessments of the potential impacts of climate risks, and identifying climate-related opportunities. The working group also regularly prepares climate risk project progress reports, organizes internaltraining, and continuously improves the climate risk awareness and management capabilities of all employees, providingstrong support for the Company to build a sound climate governance system. During the reporting period, the Company hascompleted the identication of climate risks and opportunities and formulated targeted response strategies.
To further analyze the impact of climate-related risks and opportunities on each link in the Company value chain andimplement corresponding measures to reduce the impact on business operations, the Company qualitatively assessesclimate impacts and develops climate response strategies. It adopts climate change mitigation measures such as reducingcarbon emissions and improving energy efficiency, and also conducts continuous monitoring of the climate change andsocio-economic development to make the related management measures better.
Climate Governance Framework
Climate Response Strategies
The Company actively promotes biodiversity conservation and has always been committed to protecting the green ecology.To protect the biodiversity where the Company is located, it has adopted a series of policies and actions to regularly organizeemployees to participate in various ecological protection volunteer activities by using e?cient purication equipment andinnovative processes with the focus on the conservation and restoration of surrounding natural habitats, so that everyemployee is a practitioner of protecting biodiversity.
Contributing to Biodiversity Conservation
Case: Securing Production Materials and Promoting Biodiversity
To further contribute to the diversity of species and ecosystems, the Company grows a rich variety of fruit andvegetable ingredients such as lemons, mulberries, grapefruits, blueberries, and oranges in Ji'an, Jiangxi province.After several years of careful cultivation, the bumper harvest of the base-grown fruits provides raw material supportfor the Company's production and processing, laying a solid foundation for subsequent production and processinglinks. While the Company's own forest land helps ensure product quality, it is also of great signicance to promotebiodiversity, help promote the stability and anti-interference ability of the forest ecosystem, and provide rich foodresources for insects, birds and other animals in the forest, contributing to the vigorous development of biodiversity.
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Risk categoryRisk description
Impactcycle
Countermeasures
Physical risks
Acute risks
Extreme weather such asprecipitation, high temperatures,and typhoons are more frequentand more intense, a?ectingthe stability of the Company'soperations and supply chain, andcausing xed asset losses
Short-,medium- andlong-term
·In response to foreseeable acute climate riskssuch as extreme heat and extreme precipitation,regularly inspect and reinforce related facilities toensure that rain protection measures are in place,and use meteorological monitoring platforms toadjust production plans in a timely manner
·Reasonably arrange employees' work duringhigh temperature periods and provide necessaryheatstroke prevention and cooling facilities andmaterials·Develop emergency response plans for extremeweather events such as extreme precipitation,and explore exible operation and delivery models
Chronic risks
The increase in high temperaturehours and water pressure has ledto an increase in the Company'senergy, resource consumptionand equipment maintenancecosts; abnormal global climateand abnormal uctuations innatural raw material procurementprices have a?ected the stabilityof the supply chain
Short-,medium- andlong-term
·Adhere to water and energy conservation inoperations to improve the Company's resilience tochronic climate risks·Strengthen employees' awareness of climaterisks, improve their emergency responsecapabilities through training, and enhance theirawareness of climate change mitigation
Transformation
risks
Policy andlegal risks
Countries or regions introducestricter climate policies, suchas imposing carbon emissionrestrictions on the Company andimplementing carbon pricingmechanisms, which leads to anincrease in the Company's inputcosts
Medium- and
long-term
·Continue to carry out greenhouse gas emissionsaccounting and continuously reduce emissionslevels
·Pay close attention to industry regulatory trendsand make compliance preparations in advanceTechnologicalrisks
In low-carbon transition, asenergy, information and othertechnologies are upgraded, theCompany may need to update theproducts and services purchased,resulting in increased technologyinvestment
Short-,medium- andlong-term
·Continuously improve our digital level andequipment energy e?ciency to create a green andlow-carbon supply chain
Market risks
As consumers' demand for low-carbon transformation-relatedservices is increasing, and theirrequirements are improving, theCompany needs to continuouslyinnovate products and improveservice quality
Short-,medium- andlong-term
·Pay attention to consumers' demand for low-carbon products and continuously optimize theCompany's products and services; expand intothe eld of low-carbon food ingredients, promotethe research and development and applicationof low-carbon technologies, use enzymatichydrolysis technology to produce low-carbonproducts, and actively explore the potentialapplication of synthetic biology
·Prioritize the use of renewable raw materials andpackaging·Strengthen low-carbon product marketing andenhance consumer awareness
Reputationrisks
External stakeholders have higherrequirements for the Company'sclimate-related governanceperformance and informationdisclosure. If the expectationsof stakeholders are not met, theCompany's reputation may bedamaged, leading to the loss ofconsumers and investors
Short-,medium- andlong-term
·Maintain close communication with stakeholdersand improve the disclosure of climate-relatedinformation·Establish an ESG management system toimprove sustainable development performance
Opportunity
category
Opportunity description
Impactcycle
Countermeasures
Driving market growthfor green and healthy
products
The global market demand for low-carbon foodingredients continues to grow, consumers'awareness of health and environmental protectionhas signicantly improved, and low-carbon productssuch as natural avor bases have clear marketprospects. The Company has made deployments forthe enzymatic hydrolysis technology and sought toresearch and develop synthetic biology to providetechnical support for the green upgrade of products
Short- andmedium-term
Deepen the research anddevelopment of enzymatichydrolysis technology, explorethe application of syntheticbiotechnology, promote theproduction of environmentallyfriendly fragrance-based products,and accelerate the industrializationlayout of green productsDeveloping cleanproduction and greentechnology
Stricter international environmental protection policieshave driven innovation in production processes.Green processes reduce export compliance risksand enhance international customer appeal. Thepractices of our subsidiaries have veried theircommercial value and the appeal of green technologyto international customers
Short- andmedium-term
Transform high-energy-consumingproduction links, improve energye?ciency management, promotethe application of green and low-carbon technologies, and create abenchmark for clean production inthe fragrance industryEnhancing brand valueand customer loyalty
Leading food and beverage companies give priorityto suppliers with excellent ESG performance. Greencertied products help gain market competitiveadvantages. Investors continue to pay more attentionto leading enterprises in climate management
Medium- and
long-term
Strengthen ESG informationdisclosure, enhance brandinuence through publicityand promotion, and deepencooperation with key customers
Expandinginternational markets
Green certied products have signicant marketaccess advantages in the EU and Southeast Asia.The global market demand for low-carbon productsis growing. Products that meet carbon footprintrequirements are more likely to enter the internationalmarket and attract high-end customers. The layoutof overseas production bases provides support formarket expansion
Medium- andlong-term
Promote international certicationrelying on the overseas productionbase, develop an export productportfolio that meets mainstreamenvironmental standards, andenhance overseas marketcompetitivenessOptimizing supplychain stability
Abnormal climate causes annual price uctuations ofnatural raw materials such as orange oil. Diversiedprocurement and cooperation with green supplierscan enhance supply chain resilience and reduce theimpact of climate-related risks
Short- andmedium-term
Work with suppliers to promotesustainable procurement, establisha green supply chain managementsystem, and ensure the stabilityand low-carbon development ofthe supply chainEnhancing enterpriseresilience andcompetitive advantage
Climate risk management capabilities have becomeone of the core competitiveness of the industry.Companies with excellent ESG performance haveshown greater resilience in nancing channels andmarket competition
Long-term
Improve the climate riskmanagement system, establisha climate risk identication,assessment and responsemechanism, and incorporateclimate factors into corporatestrategy and operational decision-making
Time denition: short-term (0-3 years), medium-term (3-10 years), long-term (more than 10 years)
Time denition: short-term (0-3 years), medium-term (3-10 years), long-term (more than 10 years)
Identication and Response to Climate RisksIdentication and Response to Climate Opportunities
Key performance indicatorsUnit20232024Greenhousegas emissions
Scope 1(direct emissions)
Tons of CO
equivalent2,0421,575
Scope 2(energy indirect emissions)
Tons of CO
equivalent7,4765,765Total emissionsTons of CO
equivalent9,5187,340
Greenhouse Gas Emissions of Huabao Flavours & Fragrances
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances recognizes that its development environment faces many climate-related risks, but risks alsocontain multiple opportunities. Therefore, by continuously improving energy and resource utilization e?ciency, upgradingoperating models, improving energy management level, building a green and low-carbon supply chain, the Companypromotes our products and services to keep pace with the times, enhances our resilience to climate change, and createmore opportunities for the Company's sustainable development.
Climate Mitigation Action
The Company attaches great importance to the energy e?ciency performance of equipment and actively purchases variousenergy-saving and environmentally friendly equipment, covering multiple areas from key production links to auxiliaryprocesses, curbing the emission of pollutants at the source. The Company gives priority to energy-saving equipment withlow energy consumption in the equipment selection stage. In the selection of production equipment, low-energy and high-e?ciency variable-frequency motors are selected, such as the use of energy-saving water pumps, circulating cooling towersand other equipment and facilities to save energy. In green lighting, priority is given to energy-saving lighting equipment suchas compact uorescent lamps, high-pressure sodium lamps, and low-pressure sodium lamps with high e?ciency, so as toe?ectively reduce energy consumption and carbon emissions.In addition, the Company has taken a series of comprehensive measures to reduce carbon emissions and save energy inusing natural gas, including adding energy-saving heating devices to the boiler system to improve thermal energy conversione?ciency, using warm or hot water to preheat the boiler to shorten startup time and reduce energy consumption, installingthermal insulation lm on the outside of the steam pipe to reduce heat loss, implementing automatic control of the steampipeline to accurately adjust the ow rate, and exibly adjusting the heating boiler model according to production needs, soas to promote the Company's transformation to a greener, lower-carbon and sustainable development model.
Equipment Energy E?ciency Upgrade
Frequency Conversion Energy-Saving Equipment
Case: Full Introduction of Electric Forklifts to Start Low-Carbon Energy Transformation
Case: Optimizing Processes and Layout to Promote Green and Low-Carbon Transformation
The Company's new plants give priority to the introduction of newenergy equipment to continuously reduce their dependence ontraditional fossil energy. For example, Jiangxi H&K fully adoptselectric forklifts for handling operations in the warehousing process,with a total of 11 electric forklifts. Compared with traditional fuelforklifts, electric forklifts have lower energy consumption, helping thecompany to move steadily towards a low-carbon production model.
Jiangxi H&K innovates the material conveying methodand, based on in-depth research and optimization ofthe production process, cleverly designs a top-downhigh-low position di?erential layout. In the material owprocess, the material's own weight is fully utilized fortransportation, which greatly reduces the frequencyof use of material conveying pumps, realizes theintegration of high efficiency and low carbonization ofthe production process, and provides an innovativeexample for energy conservation and emission reductionin the material transportation link in the industry.
Jiangxi H&K optimized the layout of power facilitiesand placed them in the center of the factory, reducingenergy losses during transmission and ensuring thatpower energy is delivered to each production link inthe most efficient manner, further improving energyutilization e?ciency and helping to achieve low-carbondevelopment goals.
Electric Forklift
Material Conveying by Its Own Weight
Power Facility in the Center
The Company actively promotes the low-carbon upgrade of its operating model through production process optimization andother means, and further improves energy e?ciency by reducing greenhouse gas emissions in production, operations andmanagement.
Low-Carbon Upgrade of Operating Model
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Key performance indicatorsUnit20232024
PetrolLiter62,36135,874DieselLiter113,36224,126Natural gasCubic meter (m?)741,728662,218
ElectricityMegawatt hour (MWh)13,109.6410,742.97
Energy Usage of Huabao Flavours & Fragrances
The air conditioners are set to a unied temperature standard, no lower than 26°Cin summer and no higher than 20°C in winter.When the room temperature is below 25°C, it is encouraged to open windows forventilation and avoid turning on air conditioning.Maintenance personnel regularly check the operation of the air conditioner toensure timely maintenance.
Air ConditioningManagement
When purchasing new equipment, all departments should give priority to energy-saving and water-saving equipment under the same conditions.During use, water and electricity should be used rationally and equipmentmaintenance should be done properly.
New EquipmentSelection
Responsible for the equipment and maintenance of the Company's water andelectricity metering instruments, and conduct monthly metering statistics.Regularly optimize and inspect energy supply and transmission lines to ensure theirnormal operation.Strengthen electricity management and strictly control the electricity consumption ofeach department
Energy Managementand Monitoring
The Company actively advocates energy conservation and requires employees toturn o? lights when leaving o?ce and shut down personal computers and desktopo?ce equipment during non-o?ce hours to reduce standby power consumption.Promote the use of energy-saving lamps and energy-saving control devices.The lighting system uses segmented control switches to facilitate partial openingand avoid waste of large-area lighting.Five minutes before work and after work, department heads are responsible forturning on or o? lighting and electrical appliances, such as air conditioners, fans,lighting, and computers, to prevent electricity waste when no one is working.During the lunch break, except in special circumstances, all lighting and electricalappliances must be turned o?.
Daily ElectricityManagement
●Responsible for organizing relevant skills training for major energy users;
●Responsible for the allocation and adjustment of human resources;
●Responsible for providing evidence that personnel in various positions are competent;
●Responsible for the supervision and management of personnel training plans, establishing trainingles, and conrming training results.
Administrationand HRDepartment
EnergyManagement
O?ce
●
Responsible for the preparation, revision, management and control of energy management systemdocuments;
●Responsible for the internal audit of the energy management system;
●
Responsible for assisting top management in conducting management reviews;
●
Responsible for the collection and compliance evaluation of laws, regulations and relatedrequirements applicable to the company;
●Responsible for the control of nonconformity, corrective and preventive actions.TechnologyDepartment
●Responsible for departmental energy review;
●Responsible for the completion of departmental energy indicators and the implementation of theenergy management implementation plan;
●Responsible for monitoring, measuring and analyzing departmental energy performance;
●
Responsible for formulating departmental economic operation plan;
●Responsible for the departmental non-compliance correction and corrective and preventive actions.
Major energy-consumingdepartments
Yingtan Huabao Energy Management System Working Group
Energy Management, Energy-Saving and Cost-Reducing
measures of Huabao Flavours & FragrancesHuabao Flavours & Fragrances strictly abides by the Energy Conservation Law, ISO 50001:2018 and other relevant lawsand regulations and standards, continuously optimizes its energy management system, and formulates managementregulations such as the Electricity Conservation Management System, the Resource and Energy Conservation ManagementRegulations, and the Energy Management System to implement and continuously improve the energy management system,and has passed the energy management system certification. The Company has established an energy managementsystem working group to strictly implement its energy management regulations across work teams and individuals, fullyenhance the energy-saving awareness of all employees, and convey our energy management requirements to all relevantparties. During the reporting period, Yingtan Huabao has acquired the Energy Management System Certification ISO50001:2018.
Energy Management and Green Operations
●Responsible for establishing energy benchmarks, energy targets and energy managementimplementation plans;
●Responsible for monitoring, measuring and analyzing energy performance;
●Responsible for fully considering energy performance improvement opportunities when designingnew, modied and expanded project sites;
●Responsible for the energy management during the construction process of departmental technicalimprovement projects;
●Responsible for giving priority to purchasing energy-saving equipment in the equipment purchasereview process;
●
Responsible for evaluating the impact of newly purchased equipment on energy use, energyconsumption, and energy e?ciency.
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Huabao Flavours & Fragrances strictly abides by the Law on the Prevention and Control of AtmosphericPollution, the Law on the Prevention and Control of Water Pollution and other laws and regulations inthe places where it operates. It actively carries out environmental pollution control and waste emissionmanagement, regularly monitors the emission of major pollutants such as waste gas and wastewater,and actively reduces waste generation. In 2024, the Company had no major emissions or leakageviolations, and no significant administrative penalties or criminal liabilities incurred due to pollutantemissions.
Waste Management
The Company has formulated regulations such as the Waste Gas Pollution Management Regulations and the Waste GasManagement Control Procedures to handle organized and unorganized waste gases in strict accordance with national andlocal laws and regulations and the emission standards stipulated in the Pollution Discharge Permit. Taking the subsidiaryYingtan Huabao as an example, Yingtan Huabao strictly implements the emission standards of Emission Standard of AirPollutants for Boiler (GB13271-2014), Integrated Emission Standard of Air Pollutants (GB 16297-1996), and EmissionStandards for Odor Pollutants (GB 14554-1993) for boiler flue gas, non-methane total hydrocarbons, volatile organiccompounds, and odor to ensure that emissions comply with national regulations.In addition, all subsidiaries have taken a series of waste gas management measures based on the conditions of theirrespective production lines. For example, Yingtan Huabao uses activated carbon + 15m exhaust pipe to discharge distillationwaste gas; Guangzhou Owada places the process where the odor of ingredients is generated in a small closed workshop,with a wind collection hood installed and a special disposal facility adopted for activated carbon adsorption; Jiangxi H&Kregularly inspects environmental protection facilities and updates corresponding accessories. For the unorganized wastegas generated in the production process, each factory area strengthens workshop production management to reduce theamount of waste gas escape, and reduces the impact of unorganized waste gas on the surrounding environment throughdaily equipment maintenance, workshop ventilation, and factory greening absorption.
The Company's wastewater includes production wastewater and domestic wastewater. Production wastewater mainlycomes from vacuum wastewater and equipment cleaning wastewater in each workshop. Domestic wastewater mainlycomes from canteen catering domestic sewage and o?ce domestic sewage. All wastewater is subject to the national andlocal regulations and the emission standards specied in the Pollution Discharge Permit.The Company implements a series of wastewater treatment measures, treating domestic sewage through three-stageseptic tanks and grease traps, and treating it together with production wastewater through the factory sewage treatmentstation, and then discharging it into the sewage treatment plant for further treatment. The sewage treatment station adoptsthe "water collection tank + sedimentation tank + conditioning tank + anaerobic tank + biological lter" treatment process,e?ectively reducing the adverse impact of wastewater on the surrounding environment.
The Company strictly implements relevant laws and regulations such as the Law on the Prevention and Control ofEnvironmental Pollution by Solid Waste and the National Catalogue of Hazardous Wastes, formulates internal rules andprocedures such as the Waste Management Control Procedures and the Solid Waste Treatment Regulations, and recycleswaste that has utilization value by standardizing the treatment processes of di?erent types of waste. Among them, domesticwaste is handled by the sanitation department, and general solid waste sludge is handled by a third party with professionalqualications, with a Solid Waste Disposal and Industrial Service Agreement signed to ensure 100% compliance with thewaste treatment rules and ensure that the waste disposal meets the Standard for Pollution Control on the Non-HazardousIndustrial Solid Waste Storage and Landll (GB 18599-2020) and other national and local requirements.The Company clearly distinguishes between hazardous waste and general waste, places an appropriate number of solidwaste collection bins in the o?ce building and each workshop, and labels them as hazardous waste (red label), recyclablewaste (green label), and non-recyclable waste (blue label). Each department collects solid waste by category and stores itin the corresponding collection bins. Recyclables are handed over to the waste recycling department, and a monitoring andmeasurement control procedure is implemented to achieve the resource utilization, harmlessness, and reduction of varioustypes of solid waste.
Waste Gas Management
Wastewater Management
Solid Waste Management
Jiangxi H&K Regularly Checksand Replaces Activated Carbon
Jiangxi H&K Regularly Checks and Replaces
Failed UV Light Oxygen
Key performance indicatorsUnit20232024
NO
x
emissionskg04SOx emissionskg231450
Key performance indicatorsUnit20232024
Total wastewater dischargeCubic meters587,161 398,345
Waste Gas Emissions of Huabao Flavours & Fragrances
Wastewater Discharge of Huabao Flavours & Fragrances
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
In accordance with national laws and regulations, the Company hasformulated a series of systems, including the Standard OperatingProcedures for Laboratory Waste Treatment and the ManagementSystem for Precursor Chemicals, to strengthen the Company'schemical safety supervision and management, ensure the life andproperty safety of employees, and promote the Company's safe andhealthy sustainable development. The Company strictly implements theNational Catalogue of Hazardous Wastes and other relevant laws andregulations, and formulates the Waste Management Control Procedure,Hazardous Waste Emergency Plan Registration System, HazardousWaste Emergency Plan Hazardous Waste Storage Facility ManagementSystem, Hazardous Waste Storage Site Management Regulationsand other documents for the management of hazardous waste. Forhazardous waste, a safety o?cer is designated to be responsible for thecoordination and management of waste treatment. By standardizing thetreatment processes of di?erent types of waste, the waste with utilizationvalue is recycled and treated, and subject to daily supervision, regularhandover, and disposal by entrusted qualied units.
Huabao Flavours & Fragrances has taken a number of measures in noise management to ensure compliance with relevantstandards. Its current noise sources mainly include life, transportation and boiler operation, but the factory boundary noisevalues meet the Industrial Enterprise Factory Boundary Noise Emission Standards. To actively prevent and strictly controlthe noise and vibration pollution generated in production and operation, the Company selected equipment with less noiseand equipped the equipment with more noise with sound insulation facilities and sound insulation doors. It regularly monitorsnoise and provides employees with necessary hearing protection measures, thereby effectively controlling or reducingnoise and ensuring that it meets the factory boundary environmental noise emission standards. During the reporting period,Huabao Flavours & Fragrances did not receive any complaints about noise.
Hazardous Waste Management
Noise Management
Training on Standardized Managementof Hazardous Waste Generating Units
Case: Upgrading Sewage Equipment to Halve Sludge Volume
Jiangxi H&K, a subsidiary of the Company, actively upgraded theequipment of its sewage station, purchased sludge diaphragm pumps,used plate filter presses to filter the sludge, controlled the moisturecontent of the sludge below 73%, and moved the frame lter press tothe side of the secondary sedimentation tank. The sludge is pumpedinto the lter press with the help of a lifting pump, and the water fromthe lter press is directly discharged into the biochemical pool abovethe middle water pool, eventually reducing the original sludge volume ofabout 10 tons per month to about 5 tons.Sludge Filter Press EquipmentWaste Discharge of Huabao Flavours & FragrancesKey performance indicatorsUnit20232024Non-hazardous
waste
Domestic and commercial solid wasteTons48 1,028
Industrial solid wasteTons225 115Hazardous wasteHazardous solid wasteTons11 10
Huabao Flavours & Fragrances continues to optimize its resource management system, raisingawareness of resource conservation among all employees by strengthening management and holdingspecial water-saving and electricity-saving publicity activities, actively recycling packaging materialsto practice the circular economy, advocating green procurement and green travel, and is committed tocontributing to the cause of environmental protection.
Green Production and Operation
To promote the sustainable use of water resources, reduce water waste and strengthen the scientic management of wateruse, the Company has formulated the Water Resources Management System in accordance with the relevant laws andregulations of the Water Law of the People's Republic of China, and established a water resources management projectteam based on its actual situation. General managers of its subsidiaries are responsible for planning, organizing andcoordinating the work of various departments and making decisions on water-saving projects.
Make full use of secondary water and encourage employees to use rice washing waterto water owers, collect rainwater for watering plants and ushing the ground, and suchother water-saving measures.Use water-saving faucets and encourage employees to reduce the ow of faucets asmuch as possible for their daily water use, and turn water on and o? in a timely manner.Control the amount of boiling water in water heaters according to the number ofproduction personnel, and reasonably determine the number of water heaters to beturned on to avoid unnecessary consumption of water resources.Maintenance personnel are responsible for checking the water facilities on each oorevery day to detect possible problems in a timely manner.If maintenance personnel nd water leaks or damage during the inspection, they shouldarrange repair in time to minimize water waste and ensure the normal operation of waterfacilities.Regularly check the interconnection and blockage of rainwater and sewage pipes, anduse rainwater for greening through scientic planning and layout such as rainwater andsewage diversion to reduce the use of municipal water supply and groundwater, andpromote rainwater recycling.
Water Conservation
Employee WaterConservationInitiative
Facility Inspectionand Maintenance
The Company Practices Rainwater and SewageDiversion and Checks the Rainwater and SewagePipes for Cross-pipe and Blockage Conditions
Jiangxi H&K's 600 Cubic Meters Rainwater
Collection Tank
Note: In 2024, the solid waste increased due to technological upgrades in the Company's subsidiary.
Green Guardian: Painting a Beautiful Picture of the Earth TogetherHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Case: Water and Electricity Management Upgraded in the Park Achieves RemarkableResults in Water Saving and Power ReducingIn 2024, Guangzhou Owada further updated the water meter statistics, analysis and investigation mechanismin the Park, numbered and registered each of the 40 water and electricity meters, strengthened inspections andanalysis, and uniformly upgraded and renovated all corroded and leaking water pipes in the 6 guest rooms in thePark to ensure that not a drop of water or a kilowatt-hour of electricity is wasted, and that leakages are completelyprohibited. By solving a series of problems at the source, water expenditures was e?ectively reduced, helping thePark reduce water consumption by 3,800 tons of new water compared to the same period, a decrease of 25%.
Unied Upgrading of Water Pipes in the Owada Park
Environmental Protection Signs Set by the Company
Key performance indicatorsUnit20232024Total water consumptionTons605,535475,742
Water Use of Huabao Flavours & Fragrances
Huabao Flavours & Fragrances is committed to promoting green procurement and daily environmental protection strategies.In daily office and life, it encourages and requires employees to behave from the details and practice the concept ofsustainable development with practical actions. The Company actively advocates green travel and provides employees withcommuter vehicles, encouraging them to use public transportation and take taxis when on business trips to reduce carbonemissions and jointly create a low-carbon, environmentally friendly working environment.The Company advocates meal packing to reduce food waste, and strives to reduce the purchase of non-degradabledisposable items. It encourages employees to use their own water cups as much as possible to reduce the use of disposablewater cups, and the canteen purchases reusable tableware to reduce the generation of plastic waste. In addition, theCompany calls on all departments to reduce unnecessary newspaper subscriptions, reduce paper waste, and reasonablyarrange various types of trash cans to promote garbage sorting and recycling.
When selecting product packaging, we adhere to the principle of rationality, strive to be concise and e?cient, and try our bestto purchase reusable or recyclable packaging materials to reduce excessive use of packaging materials and the generationof packaging waste. For example, Yingtan Huabao partially uses "paper instead of plastic" new packaging materials, andsells and disposes of recyclable waste barrels such as iron barrels and plastic barrels. In 2024, Yingtan Huabao disposed of
53.52 tons of recyclable waste barrels.
In addition, Jiangxi Yifang actively uses recyclable barrels for the storage and transportation of jam, and all foreign guestsin the cafeteria use degradable lunch boxes to reduce dependence on disposable containers and reduce waste generation.In 2024, the total amount of recycled waste in Jiangxi Yifang was 63.76 tons. The Company has always been committedto achieving the effective recycling and reuse of recyclable resources, and continuously contributing to promoting thesustainable development of society.
Green O?ce
Circular Economy
Case: Intelligent Liquid Level Control System Achieves E?cient Condensate RecoveryJiangxi H&K made technical improvements to the steam condensaterecovery device in the second phase of the plant by installing a liquid levelsensor on the water tank level display tube and independently developing acomplete set of control circuits. The system replenishes water through highand low liquid levels with intelligently controlled electromagnetic valves, whileensuring that space is reserved in the water tank for phase II condensaterecovery. Condensate is replenished preferentially through liquid levelsettings, facilitating the recycling of approximately 100 kilograms of steamcondensate per day.
Condensate Recovery Control System
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
The Company utilizes a diverse range of recruitment channels for all positions, including online job boards and offlinespecial recruitment fairs. Adhering to the employment standards of morality, vision, capability, and solutions, the Companyis committed to hiring on the basis of both virtue and talent, and prohibits any discrimination in employment based onnationality, region, race, ethnicity, gender, age, religious beliefs, or similar factors, ensuring fair hiring practices. To preventthe occurrence of child labor or forced labor, the Company conducts background checks on the work experiences ofprospective employees, veries their basic information and health status, and ensures that all relevant personnel meet theage requirements.The Company is committed to creating an inclusive, diverse, and respectful corporate culture that values individualdi?erences. This commitment is reected not only in the Company's entrepreneurial spirit, but also in its daily operationsand decision-making processes. The Company rmly believes that by building a diverse employee base, it can not onlyenhance the team's collaboration and market competitiveness, but also promote the exchange and integration of di?erentbackgrounds and perspectives, thereby broadening the Company's vision and enriching its creativity.The Company further regulates employment, compensation, benets, health and safety, training, and other related matters inthe Employee Handbook, strictly adhering to national laws and standards. It continuously improves the employee protectionmechanism to safeguard employees' legitimate rights and interests. Additionally, the Company has clearly outlined thehandling procedures for employee violations and has made the channels for reporting violations publicly available.
Huabao Flavours & Fragrances strictly abides by the Labor Law of the People's Republic of China, the Trade Union Lawof the People's Republic of China and other relevant laws and regulations, and has formulated the Human ResourceManagement Measures and other relevant employee management systems to promote the standardization of theCompany's operation, openness of the management of the employees, and rationalization of the protection of employees.Employee Recruitment
Employee Rights and Interests
Case: University Students Visit Huabao
In June 2024, more than 80 college students majoring in Perfumeand Aroma Technology and Engineering from Shanghai Instituteof Technology visited the Shanghai Park of Huabao Flavours &Fragrances for an o?-campus "Cognition Internship" course. Duringthe event, the Company's Vice Chairman of the Joint Trade Unionand Senior Manager of the HR and Administration Departmentwarmly welcomed the teachers and students who came to visitand study. They led a tour of the Company's exhibition hall andlaboratories and delivered an engaging career planning session,sharing insights on professional learning and career planningbased on enterprise, industry and personal learning and growthexperiences. The event enabled students to better plan theirstudies, careers, and futures. For many years, the Companyhas had a strong school-enterprise cooperation relationship withShanghai Institute of Technology, and they interact frequently ontalent development, major learning, internship and employment,and other topics, providing students with learning, internship, andemployment platforms and opportunities.
Visit to Huabao
During the reporting period, the Company had a total of1,225employees, including
new full-time employees.
By Gender
By Educational Background
By Age
By Profession
Employee Composition in 2024
The Company maintains a
100%
labor contract signing rate and
100%
social insurance coverage.The Company employs
ethnic minority employees, and
employees with disabilities.Female employees account for
21.88
% of middle management and
37.5%
of senior management.
Male employees30 years old and below
Master's degree and aboveAdministrative sta?
41-50 years old
High school and technical schoolTechnical sta?
Female employees31-40 years old
Bachelor's degreeProduction sta?Associate degree
Finance sta?
51 years old and above
Others
Sales sta?
Key performance
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Case: The Company Trade Union Held a Summary and Planning Meeting
Case: The Company Successfully Held the First Session of the Third MemberRepresentative Assembly
In July 2024, Huabao Flavours & Fragrances Joint Trade Union held an expanded meeting of the “Two Committees”for the rst half of 2024 in a conference room at the Shanghai Park of Huabao Flavours & Fragrances. 15 trade unioncommittee members and department member representatives attended. This meeting summarized the work doneduring the rst half of the year. With the understanding, support, and supervision of member employees, the tradeunion achieved good results and e?ectively implemented the Company's ESG strategy. The meeting also deployedkey work tasks for the second half of the year. The trade union would carry out various tasks in an orderly mannerin accordance with the deployment to serve employees and promote the development of the company, includingfurther improving the quality of trade union services, protecting employees' rights and interests, and promoting thedevelopment of the company's business.
The Huabao Flavours & Fragrances Joint Trade Union held its First Session of the Third Member RepresentativeAssembly at its Shanghai Park in September 2024. The assembly received high attention and active participation fromthe Company leaders and employees, with 46 member representatives in attendance. The assembly comprehensivelyreviewed the trade union's achievements over the past three years in developing six systems: employee welfare,activities, care, awards, supervision, and charity. It also made several suggestions and goals for future work. Theassembly used a secret ballot to elect new members of the trade union committee and the trade union fund auditcommittee. The elected members have a reasonable structure, cover multiple departments of the Company, andexhibit broad representation and professionalism. The successful trade union election infused new vitality into theCompany's future development and the happy lives of its employees, and the trade union continues to work hard forthe Company's development and employee welfare.
Trade Union Summary and Planning Meeting
Member Representative Assembly
Fact-basedJustFair
The Company strictly adheres to the Labour Law of the People's Republic of China, the Labour Contract Law of the People'sRepublic of China and other relevant laws and regulations. It has established and implemented rules and regulations such asthe Compensation Management Regulations to provide competitive salaries and legally mandated social insurance and housingprovident funds for employees.In line with its operational goals, the Company covers all positions in the four major categories of production, sales, technology,and operations at various levels, revising and improving performance indicators for each position. The content is combined with thecharacteristics of the job responsibilities of each department to improve the operability and practicality of performance indicators.This strengthens the correlation between actual employee performance and performance-based compensation, ensuring aprofessional and rational performance evaluation process.The Company has formulated the Employee Performance Evaluation Management Measures to objectively evaluate employeeperformance, encourage employee work enthusiasm, train employee work skills, and promote scientic, standardized and e?cientcorporate management. The Company's employee integrity and safety project evaluation uses a one-vote veto system. If a relatedincident occurs, the evaluation will automatically halt. The superior's evaluation uses a real-name system. The reasons for eachindicator's evaluation score must be briefly explained on the superior's evaluation form. Employees can also provide objectivefeedback on their opinions and views on the person being evaluated to the leadership team in a real-name setting.Upon the determination of performance evaluation results, the Company conducts performance feedback through two channels:
direct supervisor interviews and feedback from the HR and Administration Department. The specic process is as follows: Firstly,based on the completion of assessment indicators, the results are derived and communicated to the responsible parties by theHR and Administration Department. Subsequently, the direct supervisor holds a meeting with the employee to acknowledgeachievements, identify areas for improvement, and propose enhancement suggestions. If the employee has objections to the results,they may raise them through the appeal channel. The HR and Administration Department will then investigate and provide feedbackon the resolution, ensuring a fair, just, and transparent evaluation process.
The Company values democratic management and establishes various communication channels to facilitate exchanges. Thecompany actively engages with its employees by establishing reporting boxes, opinion boxes, and rationalization suggestion boxes.The trade union, as a joint organization democratically elected by employees, regularly collects opinions and demands of employeesand promptly communicates and reflects the employees' will and interests to the Company. The Company conducts annualemployee satisfaction surveys to collect employee satisfaction with aspects such as employee health care and work environment,and promptly corrects and provides feedback for categories with low satisfaction in order to create a better workplace and corporateculture atmosphere.
Furthermore, based on actual business development, the Company developed specic sta? incentive systems such as the technicalsta? incentive system, the sales sta? incentive system, the overseas sta? incentive system, and the innovation project incentivesystem. These variable compensation schemes can motivate the Company's core employees and gather more power to promotethe Company's healthy development.
Compensation System Structure
Democratic Management
Performance Evaluation Principles
Employee Compensation Structure
Conscientious
MonthlyPosition Salary
Performance
BonusMonthlySeniority Salary
Total Benets andAllowances
Objective
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Types of Company TrainingMandatory for all new hires, covering corporate culture, organizational structure, policies,employee code of conduct, role-specic responsibilities, skills, workows, and safety protocols.Required for employees moving to roles with significant differences from their previouspositions, focusing on new knowledge and skills.Based on the Company's development plans and the operational needs of various departments,employees receive job-specic skill training tailored to their professional specializations. Job-skill training is categorized into internal training and off-site training according to differentformats, and these may be combined based on actual circumstances.Personnel in specialized roles (e.g., electricians, inspectors, warehouse custodians, internalauditors) must complete industry-specic training, pass assessments, and obtain certicationbefore assuming duties.
OnboardingTrainingTransfer Training
Job-Skill Training
Specialized RoleTrainingThe company has established relevant employee training systems and places a high value on employee training and skillimprovement. It o?ers a variety of training options, including onboarding training, role transition training, job-specic skillstraining (both internal and external), special job training, and so on, based on employees' professional needs and jobpositions. Following the training, assessments and evaluations are conducted to determine whether the training producedthe desired results. To help employees grow holistically, the company focuses on three key areas of employee development:
business capabilities, leadership, and adaptability to overseas assignments.
Talent is the driving force for the sustainable development of Huabao Flavours & Fragrances. The Company activelyencourages employees to improve their skills and focuses on providing them with a variety of career developmentopportunities and training programs. Through systematic career development plans, the Company assists employees inachieving comprehensive personal and professional growth. The Company is committed to creating a working environmentthat encourages and inspires employee innovation, keeping the team at the forefront of the industry and laying a solidfoundation for the Company's long-term success.Employee Training
Employee Development
Training Program Proposal and Implementation
Training Plan DevelopmentDepartments submit training proposals based on operational needs to the HR and AdministrationDepartment. The HR and Administration Department consolidates these requests with corporatestrategic objectives to formulate the annual training plan by the end of December each year.
Training Plan AdjustmentsMid-year adjustments to the training plan require departmental submission of a revised proposal,approval by the General Manager, archival by the HR and Administration Department, andsynchronization with the updated annual plan.
Training Implementation
The HR and Administration Department monitors and tracks the execution of the annual trainingplan.
Case study: "Training Camp in Africa" empowers local sales teams
The Company encourages employees to actively apply for job-related titles and academic degree certicates in their sparetime through self-study or relevant training, in order to improve employees' personal professional and technical levels andthe Company's industry competitiveness. Within a month prior to the exam date, employees can apply for two days of paidleave per exam subject to review without interfering with their primary work. This allows them to prepare for the exam.Employees who take the exam on a weekday can get one day of paid exam leave.
During the reporting period, the Company invested RMB500,000in employee training, conducting15,000hours of training across
sessions, covering92%of employees. The average training time per employee was
15.5
hours.
Key performance
In December 2024, Huabao Flavours & Fragrances held an HR andAdministration Work Summary Meeting at its Shanghai Park. The meetingbrought together the Company's HR and administration teams, as well as HRand administration sta? from its subsidiaries, to conduct in-depth discussionsand experience exchanges on a number of key employee management anddevelopment topics. The Company invited a number of external professionallecturers to share their perspectives, focusing on the ESG concept,conducting in-depth analyses of human capital development indicators basedon the Company's situation, and explaining in detail a variety of topics suchas talent development and incentive methods, technological innovationempowering HR, and so on. This meeting provides a platform for HR andadministrative personnel to exchange experiences and knowledge, improvethe HR and Administration Department's management level, and prepare forthe development of a more outstanding HR and administrative system.
On-site Employee Recognition
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
The Company has established complete employee promotion pathways and implemented employee development incentivemeasures to encourage employees to achieve their personal improvement goals while also pooling wisdom and strengthto achieve the Company's development goals. After employees join Huabao Flavours & Fragrances, the Company willassist them in conducting self-assessments in terms of their growth experience, educational background, personality traits,strengths, and potential. Based on the assessments and the Company's employment needs, the Company will identify theareas in which employees are most interested and qualied, analyze their career positioning, and clarify their developmentdirections, allowing employees to fully capitalize on their strengths.The company provides distinct career development pathways for different tracks of positions, such as technology andmanagement, and it implements regular promotions and salary increases. It also allows for job rotation and track switching,and encourages employees to select development pathways based on their own development needs and career goals.
Employee Promotion
Multi-Track Promotion Pathways
Management TrackSupervisor
......
President
Professional TrackPerfumer
......
Chief PerfumerMarketing TrackAccount Executive
......
Chief Account Director
Technology TrackAssistant Engineer
......
Chief Engineer
Case: The Company Held an HR and Administration Work Summary Meeting
PT Huabao Food Recognition Event
Case: PT Huabao Food Technology Indonesia's Recognition Event Promotes CareerGrowth
Case: Guangzhou Huafang Conducted a Special Training on Business Etiquette
PT Huabao Food held an annual summary and recognition event in December 2024, where elites from variousoverseas departments gathered to review the previous year's achievements and challenges, as well as to plan forfuture development. During the event, the team presented highlights and innovative solutions in 2024, demonstratingthe wisdom and collaborative spirit of overseas employees. The Company awarded the "Employee of the Year" titleto recognize team members who have excelled in their career development, setting a benchmark for the growthof overseas teams. This event is not only a recognition of employee e?orts, but also an important step for HuabaoFlavours & Fragrances in promoting the development of global talents. Through summary and recognition, theCompany provides a platform for overseas employees to showcase and learn, motivating the team to continuouslyimprove their professional capabilities and innovation awareness, and injecting new impetus into the globalizationstrategy.
In April 2024, Guangzhou Huafang, a subsidiaryof Huabao Flavours & Fragrances, organized itsemployees to take an online "Business Etiquette"video course. The course lasted 4.57 hours. Foremployees to learn and refer to, the main ideasof the video were compiled into Key Points forBusiness Etiquette Learning. Following the course,Guangzhou Huafang scheduled a businessetiquette test for trained employees to assessthe e?ectiveness of the video course training andassist employees in better mastering the course'sknowledge points.
Test Site
To help the team quickly adapt to the local market, the Companycarried out in July 2024 the "Training Camp in Africa" in fiveplaces in Africa, with contents focusing on daily chemical avorknowledge, market research, sales skills, etc. The two-weektraining covered fragrance system analysis, daily flavor test,customer negotiation drill, etc., and combined them with fieldmarket research to enhance trainees' product awareness andmarket insight. Through systematic training, the team not onlymastered the fragrance evaluation standards and sales methods,but also accumulated practical experience in tapping into themarket and grasping customer needs, laying a solid foundation forthe international expansion of the daily chemical avor businessof the Company.
Sales Team in Africa
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Case: The Company Organized A Health Education Lecture
Case: The Company Conducted an Eye Health Check-up Activity
In April 2024, Huabao Flavours & Fragrances hosted a healtheducation lecture on "Daily Protection of Cervical and LumbarDiseases" at its Shanghai Park, and invited doctors from acommunity health service center to share common knowledgeand preventive measures for cervical and lumbar diseaseswith employees. The doctor in charge thoroughly examined thesymptoms of neck, shoulder, waist, and leg pain, shared healthinformation with the employees present, and led them throughcervical exercises. He encouraged employees to exercise duringwork breaks to relieve tension and strain in their neck and waistmuscles. Following the lecture, some employees asked thedoctors questions, which they answered one by one, offeringspecic suggestions and solutions. This lecture is concerned withthe physical and mental health of employees and increases theirawareness of cervical and lumbar diseases, as well as their self-prevention capabilities.
In July 2024, Huabao Flavours & Fragrances held an eye healthcheck-up activity at its Shanghai Park, inviting the eye healthservice team of a professional ophthalmology hospital to bringinstruments and equipment to provide eye health services toemployees. The ophthalmologist began the activity by givingemployees a lecture on eye health knowledge, detailing dailytechniques for protecting eye health. Employees learned thevalue of regular eye check-ups and became more aware of howto protect their vision in everyday life as a result of the lectures.Employees were then given an eye check-up to assess the overallhealth of their eyes. The hospital has created detailed eye healthles for each employee based on their check-up results to ensurethat everyone is aware of their eye condition in a timely manner.
Health Education Lecture
Eye Health Check-up
Employee representatives represent their colleagues' interests in occupational health and safety. The company listens toemployee feedback on a timely basis. To increase employee awareness of health and safety issues, improve the operationalskills of employees in key positions related to environmental and occupational diseases, and e?ciently carry out specicoccupational health and safety production management tasks, the Company regularly organizes health lectures andhealth examinations for all personnel who have an impact on the Company's environmental and occupational health safetyperformance, including temporary employees and sta? from related parties.
The Company strictly adheres to the Work Safety Law of the People's Republic of China, the Law of the People's Republicof China on Prevention and Control of Occupational Diseases, and other laws, regulations, guidelines, and policies. It hasestablished a management system based on the Company's operation conditions to ensure that the occupational healthmanagement system functions effectively. The Company thoroughly reviews the corresponding work procedures andsteps in the declaration and approval process of personal injury protection at all stages of new, modied, and expandedprojects to ensure that they run smoothly. During the reporting period, the Company's headquarters, Shanghai branch,and subsidiaries Yingtan Huabao, and Guangzhou Huafang all obtained the ISO 45001 occupational health and safetymanagement system certication. They established a set of control procedures in accordance with the system requirements,including Environmental and Occupational Health and Safety Objectives and Management Program Control Proceduresand Environmental and Occupational Health and Safety Behavior Control Procedures for Related Parties. They alsotested occupational disease hazards in the workplace on a regular basis, and through identication, prevention, correction,monitoring, and other methods, they reduced the health damage to employees caused by operations from all angles andperspectives. The remaining subsidiaries all follow this system and will actively conduct certication work.
Occupational health and safety production serve as the operational cornerstones of Huabao Flavours & Fragrances' high-quality development. The Company adheres to the safety-first production policy, continues to publicize the safety-firstproduction concept, and provides employees with a safe and healthy working environment.Occupational Health Management
Responsibility and Safety
In 2024, the Company allocated a total of RMB453,200for employees' work-related injury insurance, achievinga100%coverage rate. The coverage rate for occupational health examinations among employees also reached
100%. Additionally,
occupational diseases occurred,
work-related injury occurred, no work-related fatalitiesoccurred, and the total number of lost workdays due to injuries was
.
Selected ISO 45001 Certication Certicates of Huabao Flavours & Fragrances
Shanghai Branch, Yingtan Huabao
Key performance
广州华芳急救知识专项培训
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
The Company adheres to relevant national and international laws and regulations and establishes a sound chemicalmanagement system to ensure the safe use and storage of chemicals. To strengthen its chemical safety supervision andmanagement, the company has developed detailed management methods and regulations, such as the Standard OperatingProcedures for Laboratory Waste Disposal and the Precursor Chemicals Management System. These regulations governthe entire process of purchasing, transporting, storing, and disposing of hazardous chemicals, ensuring chemical usecompliance and safety, and standardizing chemical emergency measures.The Company has implemented a comprehensive risk assessment mechanism for chemical use. It identies and controlspotential hazards in the chemical use process through routine inspections and monitoring. It also sets up advanced safetyequipment, protective measures, and labor protection supplies to prevent potential safety hazards. For positions involvingchemical operations, each production department conducts regular publicity and education for employees to ensure thatthey are familiar with chemical safety, environmental protection, and professional protection information.
Chemical Management
Hazardous Chemical Accident Response Procedures
Skin ContactEye Contact
Lift eyelids and ush continuously with owing water
or saline solution; seek medical attention.
Inhalation
Move to fresh air immediately; keep airway clear.
Administer oxygen if breathing is labored; seek
medical care.
Remove contaminated clothing; wash thoroughly with
soap and water.
The Company always prioritizes safety management, strictly follows national safety laws and regulations, establishes andimproves the safety management system, formulates and improves the Safety Production Management Regulations, theSafety Production Responsibility System and other systems, and forms a safety management committee and a safetymanagement working group to ensure that safety production responsibilities are fullled in every position. At the same time,the Company conducts regular safety training, special inspections, and emergency drills to fully improve employee safetyawareness and emergency response capabilities. The Company employs systematic and refined safety managementmeasures to cover daily operations as well as seasonal risk prevention and control, to establish a solid safety productionline, and to create a safe and stable operation environment for employees, enterprises, and related parties.
Safety Production Management
Case: The Company Held a Safety Management Training SessionThe company held a special training session for all employees in June 2024 to raise safety awareness. A safetyaccident case study, A Safety Manager's Annual Summary video learning, and an introduction to the three mainsafety laws were among the multi-angle materials that the Company's lecturers shared during the training. Thetraining, as well as the test and feedback following the training, raise employee safety awareness, strengthen safetymanagement abilities, and ensure the Company's safe operation and production.
Case: Special Inspection on Summer Safety ProductionIn order to address the production safety risks posed by summer typhoons, thunderstorms, and high temperatures,the Company conducted a comprehensive special inspection on summer safety production in June 2024. Theinspection focused on key areas such as the implementation of the safety production responsibility system, theinvestigation of major hazard sources, fire safety, hazardous chemical management, special equipment safety,emergency management, and operation management during high-temperature seasons. The inspection was dividedinto two phases: self-inspection and self-correction, followed by company review. Through hidden danger detection,rectication and implementation, and summary and feedback, the Company's production safety management levelwas comprehensively improved, ensuring the achievement of the "zero production safety accidents" goal. Thisdemonstrates the Company's high regard for safe production.
Safety Management Training
Case: African Factory RenovationIn 2024, the Company completed a comprehensive renovation of the F&GBotswana factory in Africa to improve working environment and employeesafety. The factory's overall appearance has been completely renewedthrough systematic renovations such as the refurbishment of buildingfacades and roofs, ground hardening, and the laying of square brickpaths, significantly improving the working environment and employeetraffic conditions, thereby reducing safety hazards. Furthermore, thenewly built spare parts warehouse not only meets storage requirements,but also ensures future production expansion, further optimizing theproduction process' safety.At the same time, environmental protection facilities have been enhanced.The rectication of the alcohol distillation tower has signicantly increasedthe alcohol recovery rate, laying a solid foundation for subsequent sewagetreatment and safety production. This renovation not only improvedthe factory's overall image, but it also provided a safe and comfortableworking environment for employees, setting a new benchmark for theCompany's safety production management.
African Factory After Renovation
African Factory Before Renovation
Ingestion
Drink copious water, induce vomiting, and seek
medical assistance.
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Guided by the corporate value of "sharing and win-win", the Company is committed to building an excellent corporate culture,attracting talent, and uniting people. The Company strives to establish a fair and just employee compensation system and adiverse employee welfare management system to improve employees' sense of belonging.The Company provides a variety of skill training sessions, organizes diverse cultural and sporting activities, and optimizesvarious welfare policies, allowing employees to perceive the Company's care while devoting themselves to the Company.It strives to transform the intangible aspects of corporate culture into tangible experiences, shifting from the abstract to theconcrete, so that employees can have real experience and feel connected to the company.
Basic pension insurance, basic medical insurance (including maternity insurance),unemployment insurance, employment injury insurance, housing provident fund,statutory leaves, etc.
Health check-ups, festival allowances, birthday benets, work meals or meal subsidies,communication subsidies, high-temperature subsidies, home visit allowances,commuter shuttle services, etc.The Company organizes Family Day events to enhance mutual understanding between the Company, employees and theirfamilies. Team-building activities are conducted to alleviate work stress, foster collaboration, strengthen interpersonal bonds,and enrich cultural lives. For female employees, the Company has established the Huabao Care for Mothers Room andhosts women-centric events to safeguard their rights and ensure every employee feels valued and respected.
Employee Care
The Company's Employee Welfare System
Statutory Benets
Special Benets
During the access stage, before applying for the purchase of required chemicals, the using department determines thehazards of the required chemicals by gathering existing information. The department assigns a hazard category to thechemicals based on their hazardous properties, physical and chemical data, and regulatory requirements, and includes it inthe purchase application. During the disposal stage, the using department handles the waste residues, waste liquids, wastegases, and so on that result from the use of the Company's hazardous chemicals. Environmental protection regulations shallbe strictly followed to avoid dumping them indiscriminately and polluting the environment.
MSDS Suppliers should have MSDSRelevant personnel should be familiar with relevant regulations and have the ability to useand operate hazardous chemicals.Comply with the Company's Precursor Chemicals Management System.Strictly follow the instructions for use, prepare a solution preparation record, and store inthe designated location.Standardize operations and specify placement.All operations are strictly carried out in accordance with their usage instructions.Do not store together.The safety o?cer oversees waste disposal coordination and management.Hazardous waste should be stored separately.Daily supervision and regular handovers.
Access
Storage
Usage
Disposal
Chemical Safety Management Measures
Case: Hazardous Chemical Leak Emergency Drill
In October 2024, Jiangxi H&K held ahazardous chemical leak emergency drillin a precursor chemical warehouse. Thedrill simulated a concentrated sulfuric acidcontainer leak. The drill participants woreprotective gear, blocked the leak with re sand,collected it in special barrels, and disposed ofit properly. The drill is intended to help eachemployee improve their ability to respond toemergencies in a safe manner, clarify theirresponsibilities in such situations, and furtherunderstand the properties of hazardous waste.
Hazardous Chemical Leak Emergency Drill Scene
Case: Asia-Pacic Huabao Christmas CelebrationOn Christmas Eve 2024, Asia-Pacific Huabao held aChristmas celebration at its Singapore o?ce, conveyingthe Company's profound care and warmth. The eventenhanced mutual appreciation among employees andstrengthened team cohesion through activities likeblind box draws and surprise gift-giving. The eventfostered cultural exchange and integration, establishinga bridge for communication across diverse culturalbackgrounds to further disseminate and put intopractice the Company's core values and unique culture.The celebration allowed employees to experience thewarmth of a home in a relaxed and joyful atmosphere,enhancing their sense of belonging and well-being,while igniting the team's motivation to strive as the newyear approaches.
Huabao Asia Pacic Christmas Celebration
Case: Autumn Harvest Sports FestivalIn November 2024, Huabao Flavours & Fragrances launched the "Golden Autumn Rhythms, Yearning for Life"Harvest Sports Festival. This event aims to foster team collaboration and integration, demonstrate employee care andcompassion, implement the Company's ESG strategy, and help employees step away from their busy work routines torelax and rejuvenate, thereby sparking innovative energy. The rice cutting and threshing activities allowed employeesto personally experience both the joys and hardships of farming, while also gaining a profound appreciation forhow hard-earned food truly is, demonstrating the power of team collaboration. The rewards won by the top threeteams will be channeled into Huabao's "Flower Growth Initiative" public welfare education program as a charitablefund to support underprivileged families. The activities not only allow employees to immerse themselves in natureand experience the joy of harvest, but more importantly foster mutual understanding and trust through collaborativeteamwork.
Autumn Harvest Sports Festival
Case: Family Day Event
In May 2024, Huabao Flavours & Fragrances hosted itsannual Family Day under the theme "Scented Moments,"featuring parent-child games, garden tours, and a charityfair to strengthen employee-company ties. Over 100employees and their families from the Shanghai Parkparticipated. The event integrated philanthropic elements,channeling love not only to employee families but alsoto underprivileged communities. Family Day bridgesprofessional and personal lives, promoting holistic well-being and harmonious development.
Family Day Event
Case: Women's Day Celebration
On March 8, 2024, Huabao Flavours & Fragrancesorganized a Women's Day event to celebrate the 114thInternational Women's Day, demonstrating care for femaleemployees. Delicate gifts were distributed, accompaniedby heartfelt holiday wishes. Themed "Long Live theGirlhood Spirit," the event featured nail art DIY andfloral arrangement workshops, allowing participants tounwind and experience the Company's warmth. Theseefforts highlight the Company and the trade union'scommitment to advancing women's rights, as well as theircompassionate support and humanistic care for femaleemployees.
Women's Day Event
Talent Empowerment: Building an Excellent Organization EcologyHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Giving Back to Society: Accountability Makes the FutureHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Giving Back to Society: Accountability Makes the FutureHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Since entering Xizang, Huabao Flavours & Fragrances has paid a total of RMB
million in taxes. A total ofRMB
million was paid in 2024.A total of RMB
2.0195
million has been invested in poverty alleviation and rural revitalization in the Xizangautonomous region.
Huabao Flavours & Fragrances has always regarded rural revitalization as an important mission. Sinceentering Xizang in 2016, the Company has actively responded to the call of the autonomous region'sgovernment and deeply participated in the implementation of Xizang's rural revitalization strategy. Underthe four-in-one assistance model of assisting students, helping farmers, revitalizing the countryside,and strengthening border areas, the Company has e?ectively fullled its corporate social responsibility.Its rural revitalization practice results have been widely recognized and successfully make it one ofthe Excellent Rural Revitalization Cases of Listed the Company of the China Association for PublicCompanies The Company will continue to deepen its development in Xizang, actively integrate into thenew pattern of high-quality development there, implement corporate social responsibility with greatere?orts, and make positive contributions to the comprehensive promotion of rural revitalization.
Rural Revitalization
Case: The Company Held a Donation Ceremony for the Practice Station
Case: Shanghai-Yunnan Collaboration Enables “Yunnan Products Out ofYunnan”
In November 2024, the donation ceremony for the New EraCivilization Practice Station project in Zangxiong Village,Tanggu Township, Linzhou County, Lhasa was held at theheadquarters of Huabao Flavours & Fragrances in Lhasa.The completion of the practice station has promotedZangxiong Village to give full play to the role of the village-level organization as a stronghold, and prompted the Partylearning and education to reach every household andmaximize its value. This donation has brought support toZangxiong Village. With the help of the Company, ZangxiongVillage will develop more rapidly and contribute greater to theprosperity and development of Xizang.The Company consciously links its own development withthe development of Xizang and contributes nearly RMB 700million to local tax revenue. In promoting border construction,ethnic integration and improvement of people's livelihood, theCompany has demonstrated its sense of mission, donatedmoney, donations and materials to various parts of Xizang formany times, and implemented the national strategy of ruralrevitalization and development with multiple measures.
Huabao Flavours & Fragrances actively responds to the national rural revitalization strategy. By acquiring YunnanState Farms Plateau Food Co., Ltd., it deeply participates in the Shanghai-Yunnan cooperation and comprehensivelypromotes the "Yunnan Products Out of Yunnan" and "Yunnan Products Into Shanghai" campaigns. Relying on thecollaborative model of "Yunnan resources + Shanghai market", the Company integrates the high-quality resources ofYunnan State Farms and the technological innovation capabilities of Huabao to create a branding and marketizationpath for plateau specialty agricultural products. By establishing a collaborative mechanism of "Shanghai R&D+ Yunnan manufacturing", Huabao Flavours & Fragrances has not only increased the added value of Yunnan'sspecialty products, but also promoted the application of technologies such as plant spice extraction and flavorinnovation, helping Yunnan agricultural products enter the national market.In addition, the Company actively participated in consumer support actions and introduced Yunnan's specialtyproducts into the Shanghai market through the Shanghai-Yunnan cooperation platform, injecting new impetus intolocal farmers' income growth and rural economic development. This series of measures not only deepened theindustrial cooperation between the east and the west, but also provided strong support for rural revitalization andcoordinated development of the regional economy, demonstrating the Company's responsibility and commitment inpromoting agricultural modernization and sustainable development.
The Donation Ceremony
Yunnan State Farms' Products
Key performance
Giving Back to Society: Accountability Makes the FutureHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
In 2024, Huabao Flavours & Fragrances invested a total of RMB
241,100
in public welfare and charity.
Huabao Flavours & Fragrances has always believed that caring about and dedicating oneself toeducation will take long-term e?orts. The Company cares about education. Supporting education withpractical actions is an important measure for the Company to give back to society and better fulll itssocial responsibilities.
Social Welfare
Case: The Flower Growth Scheme Launched to Support the Education Industry
In August 2024, Huabao Flavours & Fragrances launched the Flower Growth Scheme, a student aid project, andofficially released the Flower Growth Scheme brand and brand logo. The Company operates the public welfarestudent aid project in a branded manner. This e?ectively standardizes and systematically manages all the charitystudent aid activities currently carried out by the Company, enhances the influence of Huabao Charity brand,promotes the implementation of student aid work, and benets more students.The petals in the ower logo of the Flower Growth Scheme represent open arms to welcome future young students.Each petal is made up of a heart shape, representing the sincere love of the initiators and personnel and the publicwelfare nature of the project. The yellow dot in the middle connecting the petals symbolizes the sun. The studentsembrace the sun and live towards the sun. The entire graphic shape is inspired by the image of sunowers, whichface the sun, symbolizing happiness and beauty.
After eld visits and surveys of two rural teaching sites, the Company developed a long-term student aid plan forthe Jinzhai rural teaching site. According to the plan, the Company set up Huabao Scholarships and TeachingAwards at two funded teaching sites to encourage students with good character and academic performance and torecognize teachers who stick to the front line of rural teaching. Considering the actual situation of the two schools,the Company also replaced their worn-out desks and printers, and purchased various sports supplies such as ping-pong tables. In the future, targeted updating and purchase of items will be provided based on the needs of the twoteaching sites. The Company strives to establish the Flower Growth Scheme public welfare and education aid brandprojects and contribute its modest e?orts to rural education in more regions.
The Public Welfare Brand Flower Growth Scheme
At the Donation CeremonySupplies Distributed to Students
Key performance
Giving Back to Society: Accountability Makes the FutureHuabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Case: The Company Made Targeted Donations to Help Needy StudentsCase: Selected for Jiading Industrial Zone Dream Classroom Social Practice BaseIn July 2024, the Company was selected as the sixth batch of Jiading Industrial Zone Dream Classroom studentsocial practice activity base, providing rich social practice opportunities for students in the area. The Companyactively fulfills its corporate social responsibility and promotes the development of basic education and highereducation through popular science education, career guidance and other forms. In May of the same year, thepopular science lecture course "Learn About Spices and Essential Oils" submitted by the Company was selectedinto the course menu of the school-social-enterprise co-construction of Nanyuan School District in Jiading IndustrialZone. The Company will continue to tap into its internal resources and maintain good interaction with JiadingIndustrial Zone, education departments, etc. to provide students with more meaningful learning opportunities andhelp them grow better.
In July 2024, the vice chairman of trade union of Huabao Flavours & Fragrances and a group of employeerepresentatives came to Jinzhai in Anhui province, to visit students who were specically funded by the Companyand trade union, and brought them scholarships provided by Huabao employees and relevant pairing families, aswell as books donated by families participating in the Company Family Day "Books for Vegetables" charity event, towarm and encourage them to pursue a better life and inspire them to ght for their dreams.
At the Donation Visit
Letter of Thanks from the Students who Are Donated
The Awarding Ceremony of the Dream ClassroomSocial Practice Base in Jiading Industrial Zone
The school-social-enterprise co-construction
course menu
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
ESG Key Performance Quantication TableIndicatorUnit2024Business Indicators
Operating revenueRMB 10,000135,679.36Total assetsRMB 10,000743,711.33Governance Indicators
Business ethics
Total number of directors covered by anti-commercialbribery and anti-fraud training
NA9Percentage of directors covered by anti-commercialbribery and anti-fraud training
%100Percentage of management personnel covered byanti-commercial bribery and anti-fraud training
%100Number of employees who signed integritycommitment letters
NA887Incidents of money laundering and insider tradingviolations
NA0Incidents of conict of interest violationsNA0
Environmental Indicators
Greenhouse gasemissions
Scope 1 greenhouse gas emissionsTons of CO
equivalent1,575Scope 2 greenhouse gas emissionsTons of CO
equivalent5,765Total greenhouse gas emissionsTons of CO
equivalent7,340Greenhouse gas emission intensity
Tons of CO
equivalent/RMB 10,000
0.054
Exhaust emission
Sulfur oxidesKg4Nitrogen oxidesKg450Non-hazardouswaste
Domestic and commercial solid wasteTons1,028Industrial solid wasteTons115WastewaterCubic meters398,345
IndicatorUnit2024
Hazardous wasteHazardous solid wasteTons
Energy use
ElectricitykWh
10,742,966DieselLiter24,126Natural gasCubic meters662,218PetrolLiter
35,874Water useWaterCubic meters475,742Paper recyclingRecycled paperKg
Water recycling
Total amount of wastewater recycled/reusedCubic meters
130,600Solid wasterecycling
Total amount of plastic recycledTons
Total amount of metals recoveredTons
Social Indicators
R&D
R&D investmentRMB 10,00013,652.40Proportion of R&D investment in operating income%
10.06
R&D techniciansNA
Proportion of R&D personnel%
24.57
Employee
Total employeeNA1,225Employee training inputRMB 10,000
Average training time per employeeHours
15.5
Discrimination and harassment incidentsNA
Social benets
Investment in public welfare and charityRMB 10,000
24.11
Informationsecurity
Total number of information security vulnerabilitiesNA
Total number of customers and employees a?ectedby violations
NA
Upon evaluation, the risk level for production line workers is deemed to be relatively low, and as such, coverage has not yet been extended to them.
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Primary topicsSecondary topicsRelated chapters
Climate change tackling
Manage risks and opportunities related to climate changeClimate responseAssess the adaptability of the Company's strategy, business model,etc. to climate change
Climate responseTransformation plans, measures and progress to address climate-related risks and opportunities
Climate responseDisclose information on greenhouse gas emissions in di?erentscopes by category
Climate responseDisclose information on greenhouse gas emissions by categoryClimate responseGreenhouse gas emissions accounting methodClimate responseGreenhouse gas emission reduction practicesClimate responseNew technologies, products and services that are conducive toreducing carbon emissions and achieving carbon neutrality
Climate response
Pollutant discharge
Pollution dischargeWaste managementSewage treatmentWaste managementEmission reduction targets
Environmental
managementImpact on the groupNot disclosedAdministrative penaltiesWaste management
Waste disposal
Amount of wasteWaste managementProcessingWaste managementEmission reduction targets
Environmental
management
Ecosystem andbiodiversity protection
Exit Not involvedProtection measures within the regionNot involvedProtection and restoration measuresNot involvedBiological genetic resourcesNot involvedProduct life cycle impactNot involved
Primary topicsSecondary topicsRelated chapters
Environmentalcompliancemanagement
Risk management
EnvironmentalmanagementEmergencyResponsibility and safetyAdministrative penalties
Environmentalmanagement
Energy usage
UseClimate responseClean energyNot disclosedSaving target
EnvironmentalmanagementUsage of waterresources
Use
Green production andoperationSaving target
Environmentalmanagement
Circular Economy
Goal planNot disclosedSpecic measures
Green production andoperationProgress and e?ect
Green production andoperation
Rural revitalization
Corporate strategyRural revitalization Specic measuresRural revitalizationAchievementRural revitalizationContributions to thesociety
ContributionSocial contribution
Innovation-driven
Strategic goalsInnovative R&DSpecic situationInnovative R&DResearch and development resultsInnovative R&DInnovation impactInnovative R&D
Index of Topics
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
Primary topicsSecondary topicsRelated chapters
Ethics of science andtechnology
Field of workNot involvedInternal managementNot involvedViolationsNot involvedTraining and promotionNot involved
Supply chain security
Risk management
Supply chainmanagementSafeguard measures
Supply chainmanagementImprovement measures
Supply chainmanagementEqual treatment ofsmall and medium-sizedenterprises
Unpaid amount
Supply chainmanagementSpecic situation
Supply chainmanagement
Safety and quality ofproducts and services
Management systemQuality assuranceQuality certicationQuality assuranceMajor accidentsQuality assuranceAfter-sales serviceCustomer serviceAccessibilityCustomer service
Data security andcustomer privacyprotection
Management system
Digital intelligenceempowermentSecurity incidents
Digital intelligenceempowermentCustomer privacy protection
Digital intelligenceempowermentLeakage
Digital intelligenceempowerment
Primary topicsSecondary topicsRelated chapters
Employees
Employee recruitment
Employee rights andinterestsOccupational health and safetyResponsibility and safetyCareer development and trainingEmployee developmentDue diligenceDue diligence progressMaterial Issue AnalysisCommunication withstakeholders
Communication system
Communication withstakeholdersSuggestion channelCorporate governance
Anti-Commercial Briberyand Anti-Corruption
Management systemBusiness ethicsRisk assessment
Business ethics,Supply chainmanagementTraining performanceBusiness ethicsEventBusiness ethicsAnti-unfair competition
Management systemBusiness ethicsAdministrative penaltiesBusiness ethics
Huabao Flavours & Fragrances 2024 Environmental, Social and Governance (ESG) Report
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