2021 president’s work report
In 2021, the global covid-19 pneumonia epidemic will remain severe and the external environment will become more complex. Under the leadership of the board of directors, the management of Huabao Flavours & Fragrances Co.Ltd(300741) (hereinafter referred to as “the company”) will firmly promote the implementation of strategic planning with the vision of “leader of delicious life” and the mission of “green, nutrition and health”, adhere to epidemic prevention and control, promote the adjustment of organizational structure, optimize product structure and increase product innovation, Promote the sustainable and stable development of the company’s businesses. The report on the company’s operation and management in 2021 and the work plan in 2022 is as follows:
1、 Operation and management in 2021
(I) completion of main business indicators in 2021
During the reporting period, the company achieved an operating income of 1941375300 yuan, a decrease of 7.31% over the same period of the previous year. Among them, due to the overall downstream market demand changes and the company’s product structure adjustment, the consumption of flavoring business has dropped by 10.79% during the current period, and the sales volume of food ingredients business has increased by 19.88% during the current period, and the sales value of daily flavoring business has increased by 11.13% during the current period. The total profit of the company was 11812691 million yuan, a decrease of 14.96% over the same period of last year; During the reporting period, the company realized a net profit attributable to the shareholders of the listed company of 1004352 million yuan, a decrease of 14.90% over the same period of the previous year; The basic earnings per share was 1.63 yuan, a decrease of 15.10% over the same period last year; The weighted average return on net assets was 13.30%, down 2.34 percentage points from the same period last year.
(II) summary of main work in 2021
1, food flavor business
During the reporting period, the company integrated the sweetness business and salty business in the food flavor board and adjusted the organizational structure to a new structure with sales as front desk, technology as the middle stage and supply chain as the backstage. As a front office, the sales module can expand the application area of flavor products while meeting the customers’ increasingly diversified product needs while providing customers with more resources and optimizing the channel structure. As the middle office, the technology module can provide all-round technical support for the front office business and promote the technological innovation and extended application of the two types of business; As the background, the supply chain module can further strengthen cost control and improve business efficiency. At the same time, the empowerment of science innovation center and functional platform will also be more focused, forming a resultant force to provide a guarantee for the rapid development of food flavor business.
At the same time of business integration, the company continues to optimize the product mix around the consumption scenario and lifestyle, intensify product innovation, optimize and upgrade the old products, continuously improve the product quality, streamline the long tail products, improve the overall operation efficiency of the supply chain, and create innovative products such as black garlic, rattan pepper and emulsified spices, so as to provide consumers with a better quality of consumption experience.
As an important strategic fulcrum of the company’s layout of the global industrial chain, Asia Pacific Huabao, located in Singapore, completed the project construction and team formation of the R & D center and officially started operation. In the future, Asia Pacific Huabao will play an important role in establishing a global scientific and technological innovation platform, introducing international advanced technology and talents, overseas export of high-quality products and overseas layout of the industrial chain. During the reporting period, Asia Pacific Huabao has established business contacts with food manufacturers in many countries in Southeast Asia. In order to build industrial ecology, the company has a solid layout of the “flavor +” industrial chain, and at the same time, through the Asia Pacific Warburg to channel penetration and industrial layout to the Southeast Asian market, lay the foundation for the future radiation of overseas markets.
The company continues to pay attention to the development trend and business opportunities of new tobacco, and actively carry out research on the flavor of new tobacco, including the separation and purification of key components, the safety study of flavors, the sensory evaluation methods of heating and non burning tobacco products, and so on.
2. Food ingredients business
With the gradual increase of customers’ demand for overall solutions for product innovation and upgrading, the company attaches importance to the R & D of food ingredients related technologies and product innovation of food ingredients business, continuously improves its insight into market trends and customer demands, meets consumers’ consumption demands of “green, nutrition and health”, and grasps the development opportunities of diversified consumption in China.
By virtue of the company’s advantages in the research and development of condiments, puffed cheese powder and other key areas, the company has further expanded its cooperation with customers in many key areas, such as condiment, puffed cheese powder and so on Maskabuni cheese powder, Matcha powder and other new products have been widely praised by customers. Onion slices, seaweed slices, sesame paste, peanut butter, soy sauce beef, soy sauce steak and other seasonings have also been unanimously recognized by customers and achieved significant growth. The company expects to further improve the company’s business income and profit margin by increasing relevant investment in food ingredients business, so as to obtain incremental opportunities for the company’s future layout in market segments.
At the same time, the company attaches great importance to the rapid layout of the food ingredients industry chain, actively promotes business transformation, grasps the upgrading trend of industrial consumption demand, and has invested in China’s synergistic target enterprises such as Shanghai Yifang Agricultural Technology Co., Ltd. and Hunan Jiapin Jiawei Technology Development Group Co., Ltd. according to its own needs and market conditions Product innovation and the depth of the industrial chain form complementary advantages and resource sharing. By rapidly promoting extension mergers and acquisitions, the company has formed a joint force with endogenous growth, improved the company’s industrial chain layout in the food ingredients sector, accelerated the optimization of industrial structure, gave full play to collaborative advantages, promoted the implementation of strategic upgrading, and ensured the healthy, long-term and sustainable development of the company.
3, daily flavor business
During the reporting period, the daily flavor business focuses on personal care, fabric washing, home furnishing, space fragrance and other fields, and further enriches products and gets broader market space. By actively holding regional anniversary sales activities, we launched new products such as super lemon, fragrant lavender and magenta pomegranate, and developed a variety of new space fragrance products to effectively promote the fragrance cooperation with well-known star hotels at home and abroad. At the same time, we will join hands with Japanese and European enterprises such as zengta spice and Europe fragment to interact and cooperate, exchange technology and share resources, so as to achieve mutual benefit and win-win results.
4. Other business
In terms of plant extracts, the company actively develops the preparation and application development business of natural plant extracts, and has developed β Carotene, turmeric, elderberry and other products, as well as new food preparations such as functional bead capsules and pellets. The company continues to pay attention to the development of atomized electronic cigarette industry and the pre research and pre judgment of laws and regulations. Based on its strong technical R & D strength and supply chain guarantee, the company continues to increase R & D efforts in natural extraction, re refining, cigarette oil technology, cigarette set technology and so on.
5. Build a scientific and technological innovation center project, optimize the organizational structure and introduce scientific research talents
During the reporting period, the company adjusted the original investment fund “Huabao peacock food flavor and food technology research and development project” as the ” Huabao Flavours & Fragrances Co.Ltd(300741) technology innovation center and supporting facilities project”, and built a modern science and technology innovation park with the center of science and technology innovation as the main body.
In addition to the above-mentioned changes in the investment projects with raised funds, in terms of organizational structure, the company changed the original technology center into a scientific and technological innovation center in combination with its own strategic planning. The science and technology innovation center will further enhance the company’s soft power of innovation and R & D, promote the company’s transformation, upgrading and development, and enhance the company’s international competitiveness. At the same time, the company deepens cooperation with R & D institutes, research institutes and universities in the field of R & D and application research, strengthens the introduction, cultivation and storage of high-end scientific research talents, increases the strength of personnel distribution, absorbs more outstanding technical talents, constantly promotes the company’s technological innovation and technological research and upgrading soft power, improves the core competitiveness of the company’s products and services, and consolidates the leading position of the company in China’s flavor field.
6. Promote the construction of information projects and build an integrated digital service platform
During the reporting period, the company launched the information-based fund-raising investment project ” Huabao Flavours & Fragrances Co.Ltd(300741) digital transformation project” to build a digital service platform integrating application front desk, capability middle desk and basic back office through digital transformation, so as to realize the digital transformation of enterprises and improve operation efficiency. Among them, the application front desk promotes the improvement of collaboration ability and optimizes operation efficiency through business cooperation and data sharing mechanism; Capacity middle stage: build a general engine with reuse capacity, including business capacity middle stage, data capacity middle stage and technical capacity middle stage; The background of basic services is to build an intelligent manufacturing system for flavor enterprises, and to form an integrated intelligent manufacturing solution to enhance the efficiency of the company’s industrial services.
The implementation of the project is an important part of the company’s mission of “green, nutrition and health” and driving the comprehensive upgrading of the industry. It is the cornerstone of the company’s development around “scientific and technological innovation” and “combination of industry and finance”. The implementation of the project has built the overall structure of the company’s integrated digital management platform, realized the differentiated control mode that can adapt to different business scenarios through the integration of business and finance, and deeply integrated the “upstream and downstream” of business with the “front, middle and back” of functions, comprehensively improved the competitiveness of the company’s whole industrial chain, and further strengthened the company’s operation efficiency and Analysis ability and control ability.
China’s China top China flavor industry is the top ten enterprises in 2021. The ten largest Chinese flavor industry is jointly selected by China Light Industry Association and China flavor and fragrance cosmetics industry association. It is also awarded the “China light industry technology 100 enterprises” by the China Light Industry Federation. The company has won the “China top 100 enterprise award” of the China top 100 Summit Forum of listed companies for three consecutive times, and ranked among the top 50 companies listed on the gem in the “15th China listed company value selection”.
2、 Business plan for 2022
In 2022, the company will further grasp the consumption trends and opportunities, rely on the technical advantages of the scientific and technological innovation center and Singapore R & D center, continue to carry out technological innovation and product innovation, actively expand new categories, layout trend tracks and overseas markets, and meet the diversified needs of customers. At the same time, we will continue to strengthen top-level design, do a good job in basic management, deeply carry out lean production and digital transformation of the company, promote the continuous improvement of the company’s scientific research ability and comprehensive strength from the following seven aspects, and consolidate the company’s leading position in the industry. 1. Continuously improve technological innovation capability and build an international intelligent scientific and technological innovation platform.
We will strive to promote the construction of the science and technology center, and establish a comprehensive research platform, including basic research, analytical and testing research, process research, applied research and prospective research, including flavor and natural extracts. We should give full play to the platform advantages of the Asia Pacific R & D center, actively introduce international technology talents, optimize and improve the existing technology and classic products of the company, carry out the research on flavor and fragrance, and Research on new tobacco in an international perspective. At the same time, establish and improve the construction of technology R & D related management system, strengthen the R & D coordination between various technology centers and platforms, and cultivate and reserve excellent technical talents while consolidating the leading edge of technology.
2. Grasp the development trend of product market and focus on product and service innovation.
Seize the opportunity of consumption diversification, gain in-depth insight into consumer demand and customer demands, and actively respond to changes in the market environment. The food flavor board vigorously develops flavors prepared with technology and biotechnology, and strengthens the research of flavor products with core technologies such as emulsification, microencapsulation, plant extraction, enzymatic hydrolysis and fermentation, and develops new products according to the application subdivision area. The food ingredients section will focus on the development of high value-added plant extracts (such as the full use of flowers, fruits, tea, coffee), joint major customers and universities and colleges to tackle key technologies, continue to focus on new products and applications to develop new flavors, create natural anti-corrosion schemes, antioxidant solutions and anti-aging schemes for starch, develop new ingredients to solve the pain points in the industry, increase the “flavor +” and the substitution of cleaning labels business. Explore more novel combinations; The daily flavor board pays attention to product innovation in perfume, personal care, fabric washing and other fields, focusing on the scene of fragrance, slobber, pet deodorant and pet shampoo series.
3. Expand the trend track and join hands with cutting-edge brands.
With further fragmentation of consumption circles and consumption scenarios, the emerging trend track will become a key driver for future growth in flavor and food ingredients industry. Relying on its strong technical strength, the company actively explores and arranges trend tracks, excavates cutting-edge brands that meet the consumption trend and have development potential, actively cooperates and provides overall solutions to help the rapid growth and win-win development of cutting-edge brands.
4. Expand overseas markets and promote the global layout of core industrial chains.
With the improvement of China’s international status and the influence of Chinese culture in the world, the company pays great attention to the “Chinese flavor” going overseas. With the technical advantages and radiation ability of Asia Pacific Huabao, the company actively expands overseas markets such as Southeast Asia and Eastern Europe through the localization improvement of classic products, so as to accumulate experience and lay a solid foundation for the overseas expansion of the company’s business.
5. Investment and mergers and acquisitions should be carried out simultaneously, and an industrial ecology of “green, nutritious and healthy” should be gradually built.
With the vision of “delicious life leader” and “green, nutrition and health” mission, the company will continue to focus on the key business areas such as flavor, food ingredients and additives, plant extraction and other key areas of business, and actively look for quality targets with synergy with the company’s production, technology, market and supply chain outside China. Optimize the company’s industrial structure, give full play to synergy, develop targeted products in line with consumer demand and consumption trend, increase the company’s business opportunities, improve the company’s product competitiveness, and quickly realize the strategic goal of enterprise expansion and the integration of excellent assets.
6. Continue to promote the construction of management system and promote the transformation of digital and digital intelligence of the company.
The company takes digital management as one of the important measures of strategic support, and promotes the digital transformation of enterprises and the construction of management system by creating an information integration platform, so as to realize the strong support for fine management and overall improvement of efficiency. In 2022, the company will continue to promote the full launch of digital systems in all sectors, help the company achieve visual and controllable business data, and improve management and operation efficiency; Internally improve the ability of supply chain management, establish lean production system and change to intelligent manufacturing; Establish a data center to connect suppliers, customers and consumers, and create a digital platform for delicious life.
7. Optimize the structure of talent team and enable enterprises to develop healthily.
Adhering to the enterprise talent concept of “morality, realm, ability and method”, the company will increase the construction of expert team, speed up the training of young talents, and build a new highland of high-end talents gathering and leading development. In addition, focus on unblocking the channel for employees to grow and become talents, break the identity boundary, comprehensively implement dynamic post management, continuously standardize employee management and build
