Huabao Flavours & Fragrances Co.Ltd(300741) another accident!
On the 27th, Huabao Flavours & Fragrances Co.Ltd(300741) announced that the company received the notice of filing a case from Hengyang County Supervision Committee in the afternoon of that day, which decided to file an investigation into the violation of the law by the company’s director Lin Jiayu. Lin Jiayu is the son of Zhu linyao, the actual controller of the company.
On the same day, Huabao international, a Hong Kong stock company, also issued an announcement on Lin Jiayu’s filing for investigation.
On the 24th, Huabao Flavours & Fragrances Co.Ltd(300741) announced in the morning that it had recently received a case filing notice from Leiyang supervision committee, which decided to file an investigation into the violation of the law of Zhu linyao, the actual controller of the company. Affected by the news, on the same day, Huabao Flavours & Fragrances Co.Ltd(300741) directly fell by 20cm, continued to fall the next day, and once fell by more than 19%. The Hong Kong stock Huabao international once fell more than 75% on the same day.
the son of the actual controller was filed for investigation
Huabao Flavours & Fragrances Co.Ltd(300741) on January 27, it was announced that the company received the notice of filing a case from Hengyang County Supervision Committee that afternoon, and 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.
Huabao Flavours & Fragrances Co.Ltd(300741) said that Lin Jiayu is the son of Zhu linyao, the actual controller of the company, and also serves as the chairman and legal representative of Huafeng international investment holding (China) Co., Ltd. (hereinafter referred to as “Huafeng China”) and Shanghai Xiangyue Technology Development Co., Ltd. (hereinafter referred to as “Xiangyue technology”), the controlling shareholder of the company. He does not directly hold the shares of the company. Up to now, with regard to the information available to the company, the company has failed to know whether its investigation involves corporate responsibility. The company will continue to pay attention to the progress, timely fulfill the obligation of information disclosure and prompt relevant risks.
According to the Huabao Flavours & Fragrances Co.Ltd(300741) 2020 annual report, Lin Jiayu, born in 1992, Hong Kong nationality, received education in the UK and the United States. He has served as a director and senior management in advertising media, e-commerce and other industries, and as a director of a non-profit foundation in China.
Screenshot of Huabao international official website
Huabao Flavours & Fragrances Co.Ltd(300741) said that the board of directors of the company currently operates normally. Lin Jiayu’s investigation and residence surveillance at the designated residence will not affect the normal development of the board of directors and daily work of the company. The management of the company will strengthen management to ensure the stability and normal business of the company. As of the disclosure date of the announcement, the company did not know Lin Jiayu’s personal debt. There is no pledge of the company’s shares held by Huafeng China and Xiangyue technology. Lin Jiayu’s investigation and supervision of his designated residence will not directly lead to significant uncertainty in the ownership of the company’s equity, nor will it directly have an adverse impact on the stability of the company’s control.
Huabao Flavours & Fragrances Co.Ltd(300741) said that as of the disclosure date of the announcement, the company’s capital turnover was smooth, the operating income was stable, the financial work was being carried out in an orderly manner according to the company’s system, and the financial external disclosure could be disclosed in a timely and accurate manner. The production department produces and completes the delivery in time according to the order. At present, there is no significant adverse impact on the company’s production and operation due to the above matters.
Huabao Flavours & Fragrances Co.Ltd(300741) also warned of risks in the announcement. The above matters may have an adverse impact on investors’ expectations and make the company’s share price fluctuate.
According to the third quarterly report of Huabao Flavours & Fragrances Co.Ltd(300741) , 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.
On the same day, Huabao international, a Hong Kong stock company, also issued an announcement on Lin Jiayu’s filing for investigation.
the actual controller has just been put on file for investigation and was called the “pumping Queen” of the stock market
It is worth mentioning that on January 24, Huabao Flavours & Fragrances Co.Ltd(300741) and Huabao International announced that Zhu linyao, the actual person in charge and CEO of the company, was under investigation on suspicion of violating the law.
The announcement said that Zhu linyao did not hold any position in Huabao Flavours & Fragrances Co.Ltd(300741) and did not participate in the operation and management of the company. The above matters will not have a significant impact on the daily production and operation activities of the company. The company has a continuously improved governance structure and internal control mechanism. At present, the company’s production and operation are normal.
However, 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.
The A-share company Huabao Flavours & Fragrances Co.Ltd(300741) fell by the “one” limit at the opening of the day, down 20% to close at 35.12 yuan. The next day, Huabao Flavours & Fragrances Co.Ltd(300741) fell sharply again, falling more than 19% at one time, hitting a low of 28.2 yuan / share.
On the 26th, Huabao Flavours & Fragrances Co.Ltd(300741) announced that the company received the notice of filing a case from Leiyang Supervision Commission of Hunan Province on January 23, 2022, and decided to file an investigation into Zhu linyao’s violation of the law. The company learned from Zhu linyao’s family that Zhu linyao had been subjected to residential surveillance at the designated residence.
According to data, Zhu linyao established Huabao Co., Ltd., the predecessor of Huabao Flavours & Fragrances Co.Ltd(300741) in Shanghai in June 1996. Since November 2015, he has served as the general manager of Huafeng China. From November 2015 to September 24, 2017, he served as the chairman of Huafeng China and the director of Huafeng China since September 25, 2017. Since November 2015, he has served as a director of Huabao Flavours & Fragrances Co.Ltd(300741) . Since March 2004, he has served as chairman of the board of directors, chairman of the nomination committee of the board of directors and CEO of Huabao international.
The Huabao Flavours & Fragrances Co.Ltd(300741) it controls is famous for dividends. On March 12, 2019, Huabao Flavours & Fragrances Co.Ltd(300741) disclosed its 2018 dividend plan. The company distributed cash dividends of 40 yuan (including tax) to all shareholders for every 10 shares, with a total cash distribution of about 2.464 billion yuan. However, the company’s net profit in 2018 was only 1.176 billion yuan. For a time, the market was in an uproar. Subsequently, Huabao Flavours & Fragrances Co.Ltd(300741) paid large dividends for two consecutive years. After listing in March 2018, Huabao Flavours & Fragrances Co.Ltd(300741) 3 years will be a cumulative dividend of 4.67 billion yuan (including tax).
On March 19, 2021, Huabao Flavours & Fragrances Co.Ltd(300741) disclosed the dividend plan for 2020: the company plans to distribute cash dividends of 16 yuan (including tax) to all shareholders for every 10 shares, with a cumulative dividend of 985 million yuan, accounting for 83.5% of the net profit. Huafeng international, controlled by Zhu linyao, has received a total dividend of 3.78 billion yuan. Thus, the shareholders gave Zhu linyao a title: pumping queen.
According to insiders, Zhu linyao’s illegal problem is related to the anti-corruption of China tobacco, which told the reporter of securities times · e company. 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.
The anti-corruption storm of China tobacco is still blowing. According to the discipline inspection and supervision group of the Central Commission for Discipline Inspection and the State Supervision Commission in the Ministry of industry and information technology and the supervision committee of Yunnan Provincial Commission for Discipline Inspection, Zhou Tao, deputy secretary and general manager of Yunnan China Tobacco Party group, is suspected of serious violation of discipline and law and voluntarily surrendered to the case, which is currently under investigation.
the company found no major violations
On the 24th, the Shenzhen stock exchange quickly issued a letter of concern about the investigation of the Huabao Flavours & Fragrances Co.Ltd(300741) actual controller. Ask whether Huabao Flavours & Fragrances Co.Ltd(300741) involves corporate responsibility and affects the operation of the company. Huabao Flavours & Fragrances Co.Ltd(300741) replied to the concern letter of the exchange on the 27th that up to now, the company has not known whether Zhu linyao’s investigation involves corporate responsibility, and the company will continue to pay attention to the progress and timely fulfill the obligation of information disclosure. Up to now, according to the known information, the company has not found any major violations.
As of the reply disclosure date, Zhu linyao held about 71% of the shares of Huabao International Holdings Co., Ltd. through the shareholding platform, and Huabao international indirectly held 500 million shares of the company through Huafeng China and Xiangyue technology, accounting for 81.1846% of the total share capital of the company. On January 27, the company inquired through the Shenzhen Branch System of China Securities Depository and Clearing Co., Ltd. that there was no pledge of the company’s shares held by Huafeng China and Xiangyue technology.
Huabao Flavours & Fragrances Co.Ltd(300741) said that the company is a holding subsidiary of Huabao international. Up to now, Zhu linyao’s investigation is still in the stage of investigation, which will not directly lead to significant uncertainty about the ownership of the company’s equity held by him, nor will it directly have an adverse impact on the stability of the control of the listed company.
The reply also said that Huabao Flavours & Fragrances Co.Ltd(300741) ‘s core business is outstanding. It relies on the outstanding technical advantages of the flavor industry to gain the leading market position. It mainly obtains business through bidding, and produces and operates legally and smoothly, and runs smoothly. Up to now, the company’s operating income has been stable, the production department has produced and delivered goods in time according to orders, and the production and operation have not been significantly affected.
