Huabao Flavours & Fragrances Co.Ltd(300741) : Huabao Flavours & Fragrances Co.Ltd(300741) announcement on adjusting the implementation progress of the company's investment projects with raised funds

Securities code: Huabao Flavours & Fragrances Co.Ltd(300741) securities abbreviation: Huabao Flavours & Fragrances Co.Ltd(300741) Announcement No.: 2022023 Huabao Flavours & Fragrances Co.Ltd(300741)

Announcement on adjusting the implementation progress of the company's investment projects with raised funds

The company and all members of the board of directors except Mr. Lin Jiayu guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

Huabao Flavours & Fragrances Co.Ltd(300741) (hereinafter referred to as "the company") held the 24th Meeting of the second board of directors and the 11th meeting of the second board of supervisors on March 25, 2022, and deliberated and adopted the proposal on adjusting the implementation progress of the company's investment projects with raised funds. Considering the impact of the current epidemic and other external environmental changes, as well as the actual progress of the projects invested with raised funds, the company decided to adjust the implementation progress of the projects invested with raised funds. This adjustment did not change the content, total investment and implementation subject of the projects invested with raised funds. The relevant information is hereby announced as follows:

1、 Basic information of raised funds

According to the reply on the approval of Huabao Flavours & Fragrances Co.Ltd(300741) initial public offering of shares (zjfz [2018] No. 261) issued by China Securities Regulatory Commission on February 2, 2018, the company issued 6159000000 RMB ordinary shares to the public in February 2018, with an issue price of 38.60 yuan per share and a total raised capital of 23773740000 yuan. After deducting the issuance fee of RMB 6553188114, the actual net amount of raised funds was RMB 231184211886 (hereinafter referred to as "raised funds"). The above funds were in place on February 26, 2018, which was verified by PwC Zhongtian Certified Public Accountants (special general partnership) and issued PwC Zhongtian Yan Zi (2018) No. 0108 capital verification report.

The specific investment projects of the above raised funds are as follows:

Project name total investment total amount of proposed raised capital (10000 yuan) total amount of funds (10000 yuan)

1, Huabao Yingtan food flavor and food ingredients production base 1116239810345927 project

2. Huabao Lhasa pure land health food project 50764554705139

3. Huabao peacock food flavor and food technology research and development project 17040081579369

4. Supplementary working capital 70 Shenzhen Zhenye(Group)Co.Ltd(000006) 487987

Project name total investment to be invested in raised capital

Total amount of (10000 yuan) (10000 yuan)

Total 2494286123118421

2、 Adjustment and change of investment projects with raised funds

In February 24, 2020, the company held the twenty-fifth meeting of the first board of directors and the sixteenth meeting of the first board of supervisors, and passed the motion on the postponed investment project of some fund-raising funds. The company decided to postpone the "Warburg Yingtan food flavor and food ingredients production base project", "Huabao Lhasa pure land health food project" and "Hua Bao peacock food flavor and food technology research and development project". The independent directors of the company expressed explicit consent to the matter, and the recommendation agency issued verification opinions. For details, please refer to the company's website at www.cn.info.com.cn Announcement of Huabao Flavours & Fragrances Co.Ltd(300741) on the extension of some investment projects with raised funds (Announcement No. 2020004) issued by the State Council.

The company held the 10th meeting of the second board of directors and the 5th meeting of the second board of supervisors on March 19, 2021, and held the 2020 annual general meeting of shareholders on April 9, 2021. The proposal on changing the purpose of some raised funds and adjusting the implementation plan of some raised investment projects was reviewed and approved, and it was agreed to change the purpose of some raised funds and adjust the implementation plan of some raised investment projects. It includes: terminating the "Huabao Lhasa pure land healthy food project", adjusting the "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", the new " Huabao Flavours & Fragrances Co.Ltd(300741) digital transformation project", and adjusting the "Hua Baoying Tan food flavor and food ingredients production base project" investment plan and so on. The independent directors of the company expressed explicit consent to the matter, and the recommendation agency issued verification opinions. For details, please refer to the company's website at www.cn.info.com.cn Announcement of Huabao Flavours & Fragrances Co.Ltd(300741) on changing the purpose of some raised funds and adjusting the implementation scheme of some raised investment projects (Announcement No.: 2021014).

3、 Implementation schedule of the project invested by raised funds before this adjustment

Unit: 10000 yuan

The project name is proposed to be put into raising, and the original plan reaches the expected annual investment plan

Total funds available status date

First year (2021): 11500001 Second year of Huabao Yingtan food fragrance (2022): 440000 refined and food ingredients production base 10345927 third year of December 31, 2025 (2023): 2000000 land project fourth year (2024): 3000000 fifth year (2025): 2746932

2. Huabao Flavours & Fragrances Co.Ltd(300741) scientific and technological innovation 4499742 December 31, 2022 first year (2021): 1000000 center and supporting facilities project second year (2022): 3499742

3. Huabao Flavours & Fragrances Co.Ltd(300741) digital to first year (2021): 170000 project Shanghai Pudong Development Bank Co.Ltd(600000) second year (2022) on December 31, 2023: 200000 third year (2023): 230000

4、 The implementation progress and adjustment reasons of the investment project with raised funds after this adjustment

1. Implementation progress after this adjustment:

Unit: 10000 yuan

Reach the target after adjustment of planned items

The project name can be scheduled to make the scheduled annual investment plan available

Use status date status date

First year (2021): 573248 (completed) 1. Huabao Yingtan food December 31, 2025 second year (2022): 1016751

Use flavor and food for 31 days, third years (2023): 20000

Material production base project fourth year (2024): 3000000

The fifth year (2025): 2746932

First year (2021): 168.29 (completed) 2, Huabao Flavours & Fragrances Co.Ltd(300741) science and technology December 31, 2022 December 2025 second year (2022): Shanghai Pudong Development Bank Co.Ltd(600000)

Innovation center and supporting facilities: the third year of the 31st (2023): 1800000

Fourth year of facility project (2024): 900000

The fifth year (2025): 1182913

First year (2021): 353.42 (completed) 3. Huabao Flavours & Fragrances Co.Ltd(300741) figures December 31, 2023 December 2, 2024 (2022): 200000

The third year (2023) on the 31st of the transformation project date: 120000

The fourth year (2024): 244658

2. Reasons for this adjustment

The construction progress of Warburg Yingtan food flavor and food ingredients production base (hereinafter referred to as the "Yingtan project") is slower than expected. The main reasons include: 1. Epidemic prevention and control is strict, and the time for entry of the project builders is short. ② In 2021, Yingtan, Jiangxi, where the project is located, has more rain and the construction period is shorter than expected; ③ In 2021, the price of building materials increased significantly, and the project cost was updated through consultation with the project contractor.

By the end of 2021, the company has completed the construction of phase I of Yingtan project, and the later construction of the main body of phase II of the project and the construction of relevant supporting facilities are still advancing. Combined with the actual implementation progress of Yingtan project, the company decided to adjust the planned investment amount of the project in 2022 accordingly.

The nature of land required for Huabao Flavours & Fragrances Co.Ltd(300741) science and technology innovation center and supporting facilities project (hereinafter referred to as "science and technology innovation center project") shall be changed from industrial land to R & D land. In this process, the approval of land nature change, filing and environmental assessment shall be obtained from relevant government departments. The approval process takes far more time than originally expected. By the end of 2021, the land property change and filing of the project are still in progress. According to the actual progress of the land property change of the project and the comprehensive evaluation of the company, it is proposed to change the time for reaching the scheduled usable state of the science and Innovation Center project from 2022 as originally planned

From December 31, 2015 to December 31, 2025.

Huabao Flavours & Fragrances Co.Ltd(300741) digital transformation project (hereinafter referred to as "digital transformation project") is to build an integrated service platform through digital transformation, which includes three parts: application front desk, capability middle desk and basic background, so as to realize enterprise digital transformation and improve operation efficiency. The project itself is complex and needs to develop a large number of software

A system module with a long cycle. In addition, the company has a large number of subsidiaries, and the subsidiaries obtained through merger and acquisition need to be included in the management system. The business scope and production process of each subsidiary are diverse. In order to ensure the implementation quality of the project and consider the impact of the epidemic, the company plans to adjust the date of reaching the scheduled usable state of the digital transformation project from December 31, 2023 to December 31, 2024.

5、 The impact of the adjustment of the implementation progress of the investment project with raised funds on the company

The adjustment of the implementation progress of the fund-raising investment project is a prudent decision made by the company to reduce the investment risk, improve the use quality of the raised funds and allocate resources reasonably and effectively according to the impact of the epidemic and other external environmental changes and the actual situation of the implementation of the fund-raising investment project. The adjustment of the implementation progress of the investment project with raised funds has not changed the content, total investment and implementation subject of the investment project with raised funds, and there is no situation of changing the investment direction of raised funds in a disguised manner and damaging the interests of shareholders, which will not have an adverse impact on the normal operation and development of the company.

6、 Relevant review procedures and opinions

The implementation progress of the company's investment project with raised funds has been reviewed and approved at the 24th Meeting of the second board of directors and the 11th meeting of the second board of supervisors held on March 25, 2022. Independent directors, board of supervisors and recommendation institutions

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