Last night, Huabao Flavours & Fragrances Co.Ltd(300741) announced that it had received the notice of filing a case from the Hengyang County Supervision Committee and decided to file an investigation into the violation of the company’s director Lin Jiayu. At present, Lin Jiayu has been supervised by the Changsha County Public Security Bureau at his designated residence. It is reported that “90 after” Lin Jiayu is the actual controller of the company – “the queen of China flavor” Zhu Linyao’s son.
At the same time, Huabao international, a Hong Kong stock company, also issued an announcement related to the filing and investigation of Lin Jiayu.
Affected by this news, Huabao international once plunged nearly 20% and Huabao Flavours & Fragrances Co.Ltd(300741) also fell nearly 3% in early trading today. As of press time, Huabao international fell 12% to HK $4.35/share, with a market value of 14.1 billion.
Public information shows that Huabao Flavours & Fragrances Co.Ltd(300741) ‘s main business is the development, production and sale of flavors and food ingredients, and is known as “China tobacco flavor king”. Zhu linyao, who is worth 10 billion yuan, is honored as the “pumping Queen” by the capital market with the operation of “warehouse clearing dividend” and “high throwing and low absorption”.
the directors of the “post-90s” of listed companies were “monitored”
the mother of the 10 billion rich was filed four days ago
On January 27, Huabao Flavours & Fragrances Co.Ltd(300741) announced that the company received the notice of filing a case from Hengyang County Supervision Committee this afternoon, which decided to file an investigation into the violation of the law by the company’s director Lin Jiayu.
Subsequently, the company learned from Lin Jiayu’s family that he was currently under residential surveillance at the designated residence of Changsha County Public Security Bureau. Lin Jiayu is the son of Zhu linyao, the actual controller of the company, and also serves as the chairman of Huafeng China, the controlling shareholder of the company, and Xiangyue technology, the person acting in concert.
Meanwhile, Huabao international also announced on the Hong Kong stock exchange that the company’s non wholly-owned subsidiary Huabao Flavours & Fragrances Co.Ltd(300741) (300741) received the filing notice from Hengyang County Supervision Committee on January 27, 2022.
Previously, on January 26, Huabao Flavours & Fragrances Co.Ltd(300741) issued an announcement on the progress of the investigation of the actual controller of the company.
The announcement said that on January 23 this year, the company received the notice of filing a case from Leiyang Supervision Committee of Hunan Province, which decided to file an investigation into the violation of the law of Zhu linyao, the actual controller of the company. On January 26, the company learned from Zhu linyao’s family that Zhu linyao had been subjected to residential surveillance at the designated residence. Huabao Flavours & Fragrances Co.Ltd(300741) said that the company will continue to pay attention to the progress of the above matters and fulfill the obligation of information disclosure in a timely manner in strict accordance with the provisions and requirements of relevant laws and regulations.
According to public information, Mr. Lin Jiayu, born in 1992, is a Hong Kong citizen of China and educated in the United Kingdom and the United States. Mr. Lin Jiayu worked in 2014. He once served as a director and senior management of Companies in advertising media, e-commerce and other industries, and a director of China non-profit foundation. He is now the executive director of Huabao international and the chairman of Huafeng international investment holding (China) Co., Ltd. He was appointed as the co chairman of the board of directors of Huabao International Holdings Limited on June 1, 2021.
involves “corruption”, and Hong Kong stocks have collapsed 75%
On January 24, Huabao Flavours & Fragrances Co.Ltd(300741) announced that Zhu linyao, the actual controller of the company, was put on file for investigation. That night, Huabao Flavours & Fragrances Co.Ltd(300741) said it received a letter of concern from the Shenzhen Stock Exchange. The Shenzhen Stock Exchange requested to supplement the information that the company has so far mastered on the specific matters of the investigation of Zhu linyao’s violation of the law by Leiyang supervision committee, and to explain whether it involves corporate responsibility; The company is required to conduct self-examination and explain whether the operation of the company has changed recently.
Huabao international, a Hong Kong stock company, also issued a relevant announcement. Affected by this, the opening of Huabao international collapsed on the same day, with an intraday drop of more than 75%. As of the close of the day, Huabao international fell 66.53% to HK $4.86.
While Huabao Flavours & Fragrances Co.Ltd(300741) fell by the limit on the same day, and continued to fall in the next two trading days. As of the closing on January 26, Huabao Flavours & Fragrances Co.Ltd(300741) was reported at 30.39 yuan / share, with a total market value of 18.72 billion yuan.
According to insiders, Zhu linyao’s illegal problem is related to the anti-corruption of China tobacco. Last year, Liu Jianfu, member of the Party group and deputy general manager of Hunan China Tobacco Industry Co., Ltd., voluntarily surrendered. Previously, Hunan Zhongyan also had heavyweight managers sacked for reporting. In addition, Hunan Province’s Hengyang Leiyang Supervision Committee handled anti-corruption cases of other tobacco companies last year.
In terms of performance, Huabao Flavours & Fragrances Co.Ltd(300741) the third quarterly report shows that by the end of the third quarter of 2021, the company had achieved an operating revenue of 1363646700 yuan, a decrease of 5.49% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 753.566 million yuan, a decrease of 7.84% over the same period last year.
“pumping Queen” made a fortune from scratch
annual pumping of 2.7 billion
According to public information, Zhu Linyao was born in Sichuan in 1969. In 1990, he founded his first flavor and fragrance trading company in Beijing. And bring their own flavor and fragrance business from Shanghai to Hongkong.
In 2004, Warburg international was established as deputy director general of China flavor and fragrance cosmetics industry association, vice chairman of China food additive production and Application Industry Association and member of the fourth session of the Chinese people’s Political Consultative Conference, Shenzhen, Guangdong. Rich experience in strategy making and decision-making of enterprise operation, investment and market development. He has been the chairman and President of Huabao International Group since March 2004.
According to the 2021 Forbes Global rich list, Zhu linyao ranks 831 in the world with a wealth of US $3.6 billion (about 22.8 billion yuan).
Fund Prince noticed that Zhu Linyao was named “Queen of fragrance” and “Queen of water” for a long time in the market. Zhu Linyao’s title of “Queen of water” is related to capital operation. Zhu linyao is good at selling high and absorbing low. The opportunity to increase or decrease her holdings of Huabao international shares in the Hong Kong stock market is quite accurate. In addition, after the listing of Huabao Flavours & Fragrances Co.Ltd(300741) A shares, it has repeatedly issued a high proportion of dividend plans, which has aroused the doubts of shareholders who “cash out” and “hype the stock price” by taking the opportunity of dividend.
In the A-share market, Zhu linyao was also “criticized” for Huabao Flavours & Fragrances Co.Ltd(300741) also because of a large proportion of dividends. He cashed out by taking advantage of dividends. According to media reports, according to the equity relationship chart disclosed in the 2020 annual report, Zhu linyao holds Huabao Flavours & Fragrances Co.Ltd(300741) 59.9% of the equity indirectly. Based on this calculation, Zhu linyao has cashed out about 2.79 billion yuan (including tax) through Huabao’s three-year dividend.
