Environmental, Social and
Governance (ESG) Report
Huabao Flavours & Fragrances Co., Ltd.
CONTENTS
Governance
Innovation Blueprint： Cornerstone: Building Synergistic Win-Win:
Technology Leading the Foundation for a Building an Ecosystem
the Global Journey Sustainable Future of Excellent Quality
Innovative R&D 23 Corporate Governance 43 Supply Chain Management 59
About This Report 01
International Expansion 29 Investor Relations Management 46 Quality Assurance 62
Chairman's Statement 03
Intellectual Property Protection 32 Risk Prevention and Control 48 Customer Co-creation 67
About Huabao Limited 05
Digital Transformation and Intelligent Business Ethics 51
Operations 33
Industry Empowerment 37
Green Commitments:
Talent Engine: Igniting Safeguarding the Responsibility for
Vibrant Organizational Planet's Ecological Good: Achieving
Innovation Future Shared Social Value
Employee Rights and Development 71 Environmental Management 91 Rural Revitalization 111
Employee Health and Safety 78 Energy and Resource Utilization 100 Social Welfare 112
Employee Care and Diversity & Inclusion85 Waste Management and Circular Economy102
Addressing Climate Change 105
Key Performance 115
Index of Indicators 118
Reader Feedback 121
About This Report
This report is the third Environmental, Social and Governance (ESG) Report issued by Huabao Flavours & Fragrances
Co., Ltd. (hereinafter referred to as "Huabao Limited" or "the Company"). It details the Company's practices and
Data Description
performance in economic, environmental, social, and corporate governance responsibilities for 2025. The report Data sources for this report include the Company's operational raw data, publicly available government data,
aims to facilitate effective communication with all stakeholders and systematically address their expectations and annual financial data, internal statistical reports, third-party questionnaire surveys, and third-party evaluation
requirements. interviews. Financial data in this report are denominated in RMB. In the event of any discrepancy with the financial
reports, the financial reports shall prevail.
Reporting Period Report Reliability Assurance
This annual report covers the period from January 1, 2025, to December 31, 2025.
The Company guarantees that the content of this report is true, accurate, and complete, with no false records,
misleading statements, or major omissions.
Reporting Scope
This report discloses information on Huabao Limited and its subsidiaries' fulfillment of responsibilities in Nomenclature
economic, social, environmental, and corporate governance aspects. The relevant case studies are derived from the
For ease of reference in this report:
Company's affiliated enterprises.
"Huabao Flavours & Fragrances Co., Ltd." is referred to as "Huabao Limited", "the Company", or "we"
"Huabao International Holdings Limited" is referred to as "Huabao International"
Time Frame "Yingtan Huabao Flavours & Fragrances Co., Ltd." is referred to as "Yingtan Huabao"
The reporting period spans from January 1, 2025, to December 31, 2025. To enhance comparability and forward-
looking relevance, certain content extends moderately into preceding and subsequent years. "Guangzhou Hua Fang Tobacco Flavours Co., Ltd" is referred to as "Guangzhou Hua Fang"
"Owada Flavours & Fragrances" is referred to as "Guangzhou Owada"
"Shanghai H&K Flavors Co., Ltd." is referred to as "H&K Flavor"
Preparation Basis
"Jiangxi H&K Food Technology Development Co., Ltd." is referred to as "Jiangxi H&K"
SSE Self-Regulatory Guidance for Listed Companies No. 17—Sustainability Report (Trial)
"Shanghai Yifang Agricultural Technology Co., Ltd." is referred to as "Shanghai Yifang" or "Yifang"
SSE Self-Regulatory Guidelines for Listed Companies on the ChiNext Market No. 3 —Preparation of
Sustainability Reports "Jiangxi Yifang Agricultural Technology Co., Ltd." is referred to as "Jiangxi Yifang"
UN Sustainable Development Goals (SDGs) "Huabao Asia Pacific Pte. Ltd" is referred to as "Huabao Asia Pacific"
ISSB GRI Standards "PT Huabao Food Technology Indonesia" is referred to as "PT Huabao Food"
CASS Guidelines on Corporate Social Responsibility Reporting of Chinese Enterprises (CASS-ESG 6.0) "Xiamen Amber Daily Chemical Technology Co., Ltd." is referred to as "Xiamen Amber"
CNIS Guidance on Social Responsibility Reporting (GB/T 36001-2015) "Hunan Fine Taste Biological Technology Development Group Co., Ltd." is referred to as "Fine Taste Biological
ISO 26000 Guidance on Social Responsibility (2010) Technology"
Access to the Report
Should you have any comments or suggestions regarding the content of this report or the Company's
environmental, social, and governance performance, please feel free to contact the Company by phone at 021-
Chairman's Statement
As the seasons change, a new chapter unfolds. In 2025, amidst a complex and volatile international has successfully reduced costs and enhanced efficiency. In terms of digital and intelligent transformation,
environment, profound restructuring of global supply chains, and ongoing conflicts and frictions, Huabao the PLM system, independently upgraded by the Company, has been successfully launched and applied
Limited responded to the challenging competitive landscape by adhering to its corporate mission to "Green, across all business segments. The proprietary AI model developed in-house for the automatic analysis of
Nutritious, Healthy". Driven by technological innovation, supported by international expansion, and guided flavor components has achieved industry-leading technical capabilities in resolving overlapping peaks and
by ESG principles, the Company achieved steady development in its core business segments, including edible identifying natural spices, establishing a high-quality, exclusive spectral database.
flavors, food ingredients, and daily-use fragrances, committing to creating lasting value for consumers and
society.
This confidence stems from an unwavering commitment to social mission, a responsibility upheld
Currently, growing consumer demand for natural products and the concept of sustainable development over time. The Company's public welfare student aid brand, the "Flower Growth Program", was further
are accelerating corporate efforts in green raw material R&D and low-carbon process innovation. In 2025, systematized and standardized in 2025. Its reach extended across mountains and seas, continuing to
driven by both industry trends and corporate responsibility, Huabao Limited continued to expand into illuminate students' futures, serving as a successful model of the Company's branded operation of public
natural flavors, natural ingredients, and healthy foods, providing the market with diversified natural flavor welfare projects. Simultaneously, in active response to the national rural revitalization strategy, the Company
solutions. By deeply participating in the formulation of key standards such as Natural Flavors for Food and officially launched the "Huabao Village Companion Program". Guided by the principles of "continuous
Natural Processed Foods, the Company co-led the establishment of the "Shanghai Natural Food Center" support, systematic empowerment, and endogenous development", the Company is exploring replicable
and became among the first to obtain authoritative naturalness product certification. The release of the new models for rural co-construction. These two core projects vividly embody the Company's founding mission
corporate image video, The Miracle of Nature, marks a strategic shift from product delivery to the promotion to "grow and progress together with society", ensuring that the warmth and strength of Huabao reach every
of "Symbiosis Between Nature and Technology" values. This evolution transforms the Company from a corner in need.
traditional flavor supplier into a definer and standard-bearer of healthy eating trends, helping establish
Shanghai as a national hub for natural food innovation and leading the industry's structural leap from "Basic The year 2026 marks the 30th anniversary of Huabao Limited. With a "Reset" mindset and a "Sprint" attitude,
Satisfaction" to "Natural, Healthy, and Functional." the Company will strive toward even grander goals. It will seize the strategic opportunities presented by the
development of the grand health sector, cultivate new business growth poles, and comprehensively advance
This confidence stems from the solid R&D capabilities cultivated through relentless dedication. Through
current strategies, including technological innovation and internationalization. Simultaneously, the Company
technological iteration and process optimization, the Company maintains an industry-leading position in
will establish a comprehensive market value management system, systematically clarifying and vigorously
areas such as formulation, encapsulation, popping boba, and functional ingredient extraction. Concurrently,
promoting strategy implementation to effectively enhance its market value management capabilities.
it is accelerating its layout in cutting-edge technologies including synthetic biology, probiotics, sensory
and neuroscience, and AI-powered intelligent spectrum analysis, building a well-structured and dynamic The road ahead is long and challenging, but perseverance leads to success. Remaining true to its original
R&D matrix. In 2025, the Company independently published papers in SCI-indexed journals, achieving a aspiration and upholding its mission, the Company will continue to deepen its ESG practices. Adhering
historic breakthrough. The commercialization of scientific research outcomes has accelerated, with the pilot- to its corporate vision of being "A Leader in Delicious Living", it will fulfill corporate responsibilities and
scale industrialization base for technologically innovative food ingredients and the food-grade popping create greater value through stricter standards, more pragmatic actions, and more innovative measures.
boba production line successively completed and commissioned. Construction of the comprehensive food The Company firmly believes that with the concerted efforts of all Huabao employees, the strong support
technology base and the grand health industry base in Indonesia is also progressing steadily. of shareholders, and the collaboration of partners, it will continue to write a new chapter in the sustainable
development of Huabao Limited, contributing even more strength to industry progress, social development,
This confidence stems from robust governance built on a commitment to excellence. Actively responding and ecological well-being.
to the national "Dual Carbon" goals, the Company systematically promotes lean production and deeply
integrates green, low-carbon concepts, resource circulation, and energy conservation into the entire XIA Liqun
manufacturing process. Through effective measures such as full-chain cost benchmarking, precision sourcing, Chairman
and competitive bidding on centralized procurement platforms, the Company's procurement management
Huabao Flavours & Fragrances Co., Ltd.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
Huabao Limited's journey in flavor exploration traces back to 1912 with the establishment of the Continental
About Huabao Limited Chemical Society, China's first domestic flavor and fragrance enterprise. Today, the Company has established a
portfolio of renowned brands including "Huabao", "Peacock", "Yifang", "Jiacui", "Hua Fang", "Xideng", "Owada",
and "Amber", enjoying a high reputation in the industry. Over the past two decades, Huabao Limited has
championed the globalization of national flavor and fragrance brands, seizing opportunities in overseas markets
and advancing its internationalization strategy to build a core integrated industrial chain. Its global layout includes
Company Profile R&D centers in Germany, Singapore, and Indonesia. The Company operates a state-certified enterprise technology
center, along with multiple enterprise technology centers and laboratories in Hong Kong, Shanghai, Guangdong,
Fujian, Jiangxi, and Hunan. Upstream raw material extraction centers cover Guangdong and Botswana, Africa, while
Founded in 1996, Huabao Flavours & Fragrances Co., Ltd. was successfully listed on the Shenzhen Stock Exchange
production bases are distributed across Guangdong, Jiangxi, Fujian, Hunan, and Hong Kong, achieving full-chain
in 2018 (Stock Abbreviation: Huabao Limited; Stock Code: 300741). Its subsidiary, Xiamen Amber (833164.NEEQ), is
coverage.
listed on the National Equities Exchange and Quotations (NEEQ). The Company specializes in the R&D, production,
sales, and technical services of flavors and food ingredients, dedicated to providing green, nutritious, and healthy
flavor solutions to customers worldwide.
Xizang Hunan
Germany Indonesia
Shandong
USA
Beijing Shanghai
Germany
USA
Shandong
British Virgin Islands Singapore Hubei
Indonesia Xizang Shanghai
Jiangxi
Botswana Jiangxi
Currently, the Company owns Yunnan Hunan
Guangdong
Fujian
Botswana
Hong Kong
having grown into a large-scale industrial
Hainan
group with both an international vision
and modern operational capabilities, Hong Kong Fujian
continuously driving technological
innovation and industrial upgrading.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
Corporate Culture Corporate Strategy
Vision Mission Values
Strategic Initiatives Strategic Positioning
A Leader in Delicious Living Green, Nutritious, Healthy Customer First, Value Creation, Institutionalizing Corporate Philosophy, To become a leading listed flavor and
Shared Success Intelligent Management, Asset ingredient company in China with
Securitization, and Business Globalization international influence by leveraging natural
technologies as its core to provide global
consumers with high-quality, cost-effective
flavor and health solutions.
Public
Talent
Spirit Welfare
Philosophy
Mission
Implementation of the Grand Health Industry Strategy
To promote continuous progress
Innovation, Pragmatism, Loyalty, Ethical, Visionary, Capable, and in education and improvement Huabao Limited deeply aligns with the "Healthy China" national strategy, establishing the grand health industry
of people's livelihoods through as a core growth pole for future development. By integrating global scientific research resources, the Company is
Collaboration Resourceful
sustainable public welfare committed to a comprehensive transformation from "Flavor Manufacturing" to "Health Empowerment".
projects and charitable funds,
thereby earning societal trust
and achieving sustainable
development
Dual-Core Drive, Nationwide Layout Technology-Led, Health-Core
The Company has built a "North-South" collaborative Relying on its state-certified enterprise technology
Brand Rejuvenation matrix for the grand health industry. Through the
organic linkage of R&D, marketing, and supply chain,
center, post-doctoral research station, and global
R&D system, the Company continues to achieve key
it has formed an efficient collaborative model of breakthroughs in fields such as natural extraction,
"Front-End Market Traction + Back-End R&D and enzymatic hydrolysis and fermentation, and
Manufacturing Support", significantly enhancing functional encapsulation.
overall service efficiency and operational resilience.
In 2025, the Company officially released Brand rejuvenation represents not
Clean Label: Prioritizes naturally sourced active
its new brand image film, The Miracle only an upgrade in visual identity and Jinan Northern Base: Focuses on market frontiers ingredients and develops low-sugar, low-salt,
of Nature, and introduced the core communication but also a reflection and in-depth customer service, achieving rapid and reduced-fat formula solutions to help clients
brand philosophy: "Beginning with of the Company's strategic evolution. response and precise engagement with key clients. create healthy and transparent product labels.
the End in Mind, Decoding the Miracle It integrates technological innovation, Yingtan Southern Base: Leveraging its mature
of Nature", emphasizing a consumer- product portfolios, global layout, and Technology Empowerment: Utilizes proprietary
industrial chain foundation, it focuses on technologies such as Probio-Protec crystal ball
centric approach driven by technological digital-intelligent operations into brand deepening product technology, upgrading probiotics to ensure efficient delivery and stable
innovation and sustainable development expression to enhance brand awareness production capacity, and strengthening the supply release of health ingredients, making "health"
to enhance brand value. and market influence. chain. scientifically quantifiable and perceptible.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
History
Shanghai Huabao
relocated to Lhasa, Tibet, 2022 ?Became the controlling
shareholder of Fine
and was restructured into Taste Biological
Huabao Limited Acquired Shanghai Yifang
Technology
Agricultural Technology
Co., Ltd. •Groundbreaking for
the integrated food
technology base in
Indonesia
?Acquired "Peacock", 2007 Established Huabao Asia
•Awarded an Wind ESG
AA rating, becoming
a time-honored flavor
and fragrance brand in Established F&G in Africa Pacific in Singapore the only flavor and
China to achieve this
•Huabao (Shanghai)
Continental Chemical rating
Technology Center
Society was founded was recognized as a
in Shanghai, laying the "National Enterprise
foundation for over a Technology Center"
century of development
for Peacock Flavours
McKinsey & Company 2021 2024
developed a strategic plan
Established PT Huabao
for the Company, heralding
Food in Indonesia •Joined the United Nations
the commencement of its
Global Compact (UNGC)
"second entrepreneurial
Enterprise in China's
Fragrance, Flavor, and
Established Huabao •Huabao International
Cosmetics Industry"
Flavours & Fragrances was listed on the Hong
(Shanghai) Co., Ltd. Kong Stock Exchange
(HKEX)
compilation of
the Guidelines for
•Established the Huabao Huabao Limited was
Sustainable Development
Technology Center successfully listed on the
(Environmental, Social, and
Governance) for Fragrance,
(SZSE)
Kailong Perfumery Factory Flavor, and Cosmetics
was founded, marking the Enterprises
birth of the Peacock brand
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
Major Honors in 2025
Demonstration Post Jiading Industrial Zone
Huabao Limited becomes one of the first 2024 Shanghai Model Worker Innovation Studio 2025 Top 10 Enterprises in China's Light Industry Top 100 Science and Technology Enterprises in
Chinese companies to join the IFRA-IOFI Joint Flavor and Fragrance Sector China's Light Industry
Sustainability Charter
Excellent Practice Case of Sustainable 2025 Best Board of Directors Award for Listed
Successfully selected for the 2025 Collection of Development for Listed Companies Companies
Sustainable Development (ESG) Practice Cases in
China's Fragrance, Flavor and Cosmetics Industry
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
Industrial Structure
The Company's main product portfolio comprises flavors, food ingredients, and fragrances, serving a diverse range
of sectors including food and beverage, tobacco, health supplements, catering, daily chemicals, and household
care.
Food Flavors
Food Ingredients
This segment covers extensive series such as fruit and vegetable,
dairy, floral, grains and cereals, tea, texture-enhancing, and meat
This segment includes natural extracts, fruit and vegetable
flavors, which are primarily applied in dairy products, beverages,
powders, flavor sauces, jams, popping boba, crystal spheres,
confectionery, bakery goods, meat products, snacks, and new-style
natural colors, functional ingredients, innovative dosage
tea drinks.
forms, and other specialty flavor products. These offerings are
extensively utilized in dairy products, beverages, ice cream,
bakery goods, snacks, new-style tea drinks, functional foods,
hot pot seasonings, as well as stir-fry and braising sauces for the
Food
catering industry.
Ingredients
Flavors
Fragrances
Fragrances
Tobacco Flavors
This segment serves applications in incense and disinfection,
laundry and soap, personal care, home cleaning, perfumes
This segment includes top notes and casing agents for cut tobacco,
and cosmetics, space fragrances, and pet care by providing a
alongside flavoring solutions for ancillary products such as filter
wide array of fragrance profiles, including amber floral, fruity,
rods and cigarette paper. Featuring diverse profiles ranging from
complex floral-fruity, and woody notes.
fresh and spicy to fruity and roasted, these products ensure a stable
supply for China Tobacco Industrial Companies and renowned
international clients.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
ESG Governance Materiality Assessment
Huabao Limited has elevated ESG work to a strategic level, establishing a systematic ESG governance structure with
unified leadership from the Board of Directors, specific implementation by management, and broad participation Huabao Limited considers stakeholder expectations and requirements as crucial factors in its ESG management.
from all employees. The Company has fully integrated sustainability concepts into all aspects of R&D innovation, The Company regularly conducts a double materiality assessment to explore the relevance of ESG issues to
product application, corporate governance, production operations, and social-humanistic care. It is committed to its business and the significance of their financial impact, analyzing their dual materiality in both business
building a value ecosystem of co-creation, symbiosis, and win-win outcomes with shareholders, partners, society, development and financial aspects. The Company reviews its materiality assessment annually to ensure that the
and employees. results continue to reflect changes in business development and stakeholder concerns.Through extensive and in-
depth communication with various stakeholders via multiple channels, the Company has identified the ESG issues
most relevant to its business and of greatest concern to stakeholders through the following three steps.
Leadership and Decision-Making Body
Responsible for reviewing the Company's ESG reports and major
Board of
ESG matters, and reviewing and approving the public disclosure
Directors
of major information related to the Company's ESG governance
Research and Guidance Body
Responsible for researching and formulating the Company's Identifying Key Issues Surveying Stakeholders Comprehensive Analysis of Material
E S G g o v e r n a n ce v i s i o n ; r e s e a r c h i n g a n d p r o p o s i n g Issues
Strategy and ESG
recommendations on the Company's ESG goals, strategic To understand the impact of its The Company invited The Company analyzed the
Committee
planning, governance structure, and management systems; and 2025 operations on the economy, multiple stakeholders, results of materiality assessment
reviewing and submitting the Company's ESG reports and major society, environment, and various including employees, questionnaires from internal
ESG matters to the Board of Directors stakeholders, the Company shareholders, and external stakeholders and
conducted a double materiality government bodies, prioritized these issues to reflect
assessment. Through policy media, industry partners, their "Importance of Impact on the
Permanent Management Body
analysis, industry research, and and the public, to jointly Economy, Society, and Environment"
The Office comprises heads of ESG-related departments, with peer benchmarking, the Company assess the importance and "Financial Importance",
the Company's President serving as the head. It is responsible identified major ESG-related of these issues to generating a materiality assessment
for advancing the Company's ESG development strategy, ESG Management
trends. Combining national Huabao Limited and to matrix. The Company's management
participating in the research and identification of major ESG- Office
policies and key concerns in the themselves. reviewed the results to confirm
related issues, breaking down and implementing ESG goals, capital market, 24 material issues the key disclosures for this report
and coordinating, managing, supervising, and guiding the were identified. and the future work objectives
continuous development of ESG-related work and implementation plans for ESG
management.
Executive Unit
The Working Group is led by the Corporate Management and
?Materiality Assessment Process
Information Department and comprises heads of relevant
ESG Working
departments and subsidiary leaders. It is responsible for
Group
implementing ESG tasks and achieving phased ESG goals in
accordance with the Company's overall plan, and regularly
reporting execution progress to the ESG Management Office
?Huabao Limited's ESG Management Structure
At the institutional level, the Company has formulated and implemented the Working Rules for the Strategy
and ESG Committee of the Board of Directors and the ESG Management System to provide clear guidelines for
governance. By refining the management structure and institutional framework, the Company is promoting
the deep integration of ESG concepts with business strategy at a higher standard, striving to achieve synergistic
development of economic and social benefits, and providing solid support for sustainable development goals.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report About Huabao Limited
Materiality Matrix Stakeholder Engagement
The Company places great importance on communication with its stakeholders and has established a regular
stakeholder communication mechanism to identify and actively respond to the ESG issues they are concerned
about. This year, the Company's main communications with stakeholders are as follows:
High
Key stakeholders Topics of concern Communication methods and channels
•Standardized operation of a listed company •Seminars
Impact materiality
•Environmental management •Information disclosure and submission
•Value creation •Investor hotline
•Investor relations •Company visits and research
Shareholders and
•Business ethics •Stock exchange announcements and official website
Investors
•WeChat official account
•Customer satisfaction surveys
•Customer management
•Email and daily phone communication
•Product quality and safety
•Customer mailbox
•R&D and innovation
Low Financial materiality High •Responding to customer complaints
•Information security and privacy protection
Customers •Customer visits
•Chemical safety
•Quality management system
•Supplier management system
•Product quality and safety
Governance Social Environmental •Responsible supply chain
•Public bidding
•Procurement process
Suppliers
•Industry communication and cooperation •Regular communication with business partners
corruption 08 Customer service 19 Energy utilization •Business ethics •Industry seminars
Other Business
•Company intranet
protection 11 Supply chain security 22 Waste management •Occupational health and safety •Training and onboarding
•Career training and development •Email and suggestion box
biodiversity conservation Employees •Employment management •Employee performance appraisals
development 24 Circular economy
welfare •Addressing climate change •Company website
•Renewable and clean energy •Social media and response
Rural revitalization •Valuing local community development
Special
Topic
Special Topic: Decoding the Miracle of Nature, Industrial Synergy: Co-Building an Innovative Ecosystem For
Natural Foods
Leading the Upgrade of Natural Flavors
While continuously advancing technological innovation and standard-setting, the Company actively participates
in the construction of industry collaboration platforms. In August 2025, the "Shanghai Natural Food Center" was
Against the backdrop of a lack of unified industry standards in the natural flavor sector, Huabao Limited has actively
officially inaugurated. Co-initiated by government departments, industry associations, and related enterprises,
responded to industry changes and continued to advance its "Natural, Functional, and Healthy" strategic layout.
this platform aims to integrate industrial resources, promote technical exchanges and the transformation of
The Company has extended its R&D investment and business expansion into natural flavors, natural ingredients,
achievements, and help Shanghai become an innovation hub for the natural food industry. The Company actively
and healthy foods. By synergistically advancing technological innovation and product upgrades, the Company
participates in related technical exchanges and industrial synergy to promote the development of the natural food
continuously enhances its capabilities in providing natural flavor solutions, offering greener, healthier, and more
standard system.
trustworthy product choices for customers and consumers.
Technological Breakthrough: Unleashing Natural Value
through Process Innovation
The Company continues to advance the R&D of key processes for natural flavors, improving the utilization efficiency
of natural raw materials through technological pathways such as precision extraction, biological enzymatic
hydrolysis, and bio-fermentation. This enhances flavor stability and functionality while maintaining natural
attributes. Leveraging technological innovations, the Company continuously enriches its natural flavor product
system, providing diversified natural flavor solutions to the market.
?Unveiling Ceremony of the Shanghai Natural Food Center ?Shanghai Natural Food Center
Brand Communication: Making Nature Visible
Based on its continuous accumulation in technological R&D, product systems, and industry standard-setting, the
Company has further strengthened its brand communication and public education. During the reporting period, the
Company released its brand image film, The Miracle of Nature , to showcase the technical principles and production
processes of natural flavors in a more intuitive and transparent manner, making the scientific logic behind natural
flavors more visual and understandable.
?Company Products
Standard Leadership: Promoting the Standardized
Development of Natural Flavors
Building on its continuous accumulation of technical capabilities, the
Company actively participates in standard-setting and further promotes
the construction of its certification system. During the reporting period, the ? Promotional Film The Miracle of Nature
Company's subsidiary, H&K Flavors, was awarded the Product Certification for
Naturalness of Food Ingredients by the China Quality Certification Centre (CQC). The development of natural flavors is not only a key direction for product innovation but also an important path
Several products have passed the naturalness certification, further enhancing to promote the green and healthy upgrading of the food industry. In the future, Huabao Limited will continue
the transparency and traceability of their natural attributes. This provides to deepen its research on natural flavor technology, improve its product system, and promote the synergistic
customers and consumers with clearer and more reliable quality assurance and ?H&K Flavors' product development of the natural food industry, creating a greener, healthier, and more sustainable flavor experience for
sets a positive example for the standardized development of the industry. certification for naturalness of consumers.
food ingredients
Innovation Blueprint
Technology Leading the Global
Journey
Huabao Limited adheres to technological innovation as
its core driver, building a full-chain innovation system
that integrates R&D, production, marketing, and industry
collaboration. Through continuous innovative R&D, global
expansion, intellectual property management, digital and
intelligent operations, and industry empowerment, the
Company promotes the constant upgrading of its products
and technologies to enhance its global competitiveness.
In this process, the Company not only strengthens its
independent innovation capabilities and technological
accumulation but also promotes the healthy development of
the industrial ecosystem through open cooperation, cross-
disciplinary collaboration, and the establishment of industry
standards. It aims to achieve comprehensive leadership from
technological breakthroughs to commercial value, providing
solid support for the Company's sustainable development
and the high-quality development of the industry.
Innovative R&D /23
International Expansion /29
Intellectual Property Protection /32
Digital Transformation and Intelligent
Operations /33
Industry Empowerment /37
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Innovative R&D Strategy
Huabao Limited insists on driving corporate development through technological innovation, continuously In the Company's three-year development plan, technological innovation is clearly defined as a core
conducting cutting-edge research and application development centered on its core business. By establishing a strategic direction. The Company adheres to a "Dual-Wheel Drive" innovation model, guided by market
systematic R&D framework, improving innovation management systems and project management mechanisms, demand and supported by technological R&D. It focuses on areas such as flavor upgrades and healthy food
and integrating global R&D resources, the Company promotes efficient synergy among basic research, application ingredients, coordinating the advancement of new product development, technology upgrades, and the
development, and the commercialization of results. On this basis, the Company constantly optimizes its R&D commercialization of R&D results.
processes and incentivizes innovative talent to enhance its product innovation capabilities and technological Simultaneously, the Company systematically identifies risks and opportunities in the technological
competitiveness, laying a solid foundation for high-quality development and global market expansion. innovation process by considering ongoing projects, market changes, and technological trends. This provides
a reference for R&D decision-making and resource allocation, enhancing the R&D system's responsiveness to
market changes.
Governance Based on existing R&D projects, market dynamics, and technological trends, the Company also identifies
potential risks and opportunities in the technological innovation process. This analysis of risks and
The Company strictly regulates the management of technological innovation, establishing a sound opportunities provides an important reference for the Company's technological innovation strategy, guiding
organizational structure and institutional framework to ensure that R&D activities are conducted R&D decisions and resource allocation.
scientifically and in an orderly manner. The Technology and Innovation Center comprises five departments:
the Basic Research Center, Tobacco Technology Center, Analysis and Testing Center, Food Innovation Center,
and Technology Management Department. Each department has clearly defined responsibilities and
collaborates efficiently.
Impact on Business Response Measures and Strategic
Transition Risks Specific Risk Description
Model Response
Technology and Innovation Center
Mismatch between R&D Strengthen pre-emptive compliance
direction and future review: Establish a compliance pre-
regulations (e.g., selected Sunk R&D costs; assessment mechanism for R&D project
Policy and Legal products in the biosynthesis products fail to initiation, tracking global food safety
Risks direction may not be usable launch or gain standards and biotechnology regulations
Technology Management
in food for an extended market access. in real-time; adopt a "Diversified R&D
Tobacco Technology
Analysis and Testing
period or may require Path" to mitigate policy access risks of
Food Innovation
Basic Research
Department
application). single products.
Center
Center
Center
Center
Competition and disruption Build an open innovation system:
Loss of technological
from technological paths Increase R&D investment in cutting-edge
advantage, erosion
(competitors or new technologies; acquire technology reserves
of market share;
Technology Risks technology routes achieve through university-enterprise cooperation
weakening of the
breakthroughs, rendering or industrial chain mergers and
business model's
the Company's R&D path acquisitions to maintain a technological
value proposition.
obsolete). generation gap advantage.
?Organizational structure of the Technology and Innovation Center
Low market
Leveraging its Technology and Innovation Center, the Company has established innovation platforms led by core acceptance of R&D
Deepen the "End-to-End" R&D model:
technical experts. Among them, the Flavored Food Ingredients Innovation Studio, headed by Dr. Hongqiang Wang, Shifts in customer outcomes; weak
Strengthen market insight analysis,
Market Risks preferences and market product premium
Vice President of the Company's Technology and Innovation Center, conducts systematic R&D practices focused feeding big data on consumer preferences
demand. pricing power;
on flavor upgrades and healthy food ingredients, and in 2025, the team, was honored as the"2024 Shanghai Model directly to the front end of the R&D chain.
damage to brand
Worker Innovation Studio", reflecting the Company's achievements in building innovative organizations and reputation.
cultivating research teams. Practice the green R&D philosophy:
Negative ESG controversies
Establish an ESG evaluation system for the
At the institutional level, the Company has formulated management systems such as the Measures for Management in R&D activities (e.g., use
Public boycott, R&D process, strictly screen raw material
of Science and Technology Projects , Implementation Rules for Rewards and Penalties in Science and Technology of controversial biological
Reputation Risks damage to brand suppliers; promote the construction of
materials, data privacy
Projects, Implementation Rules for Patent Management, and Management Measures for Group Special R&D Projects . issues, excessive carbon
value. low-carbon laboratories, and conduct
These provide institutional guarantees for the initiation, execution, assessment, and incentivization of R&D projects. ethical reviews and transparent disclosure
emissions).
of biotechnology R&D.
Relying on a comprehensive organization and system, the Company continuously promotes the standardization of
R&D work, the refinement of project management, and the efficiency of results commercialization. The recognition
of the team as a municipal-level Model Worker Studio reflects the team's professional capabilities and contributions ?Identified Risks Related to R&D and Innovation
in technological R&D and innovative practices, further motivating the research team to continuously enhance its
innovation level.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Opportunity Specific Opportunity Impact on Business Multi-Dimensional Product Matrix Empowering a Healthy Life
Response Measures
Category Description Model
The Company has always adhered to innovation-driven development, committed to deeply cultivating the healthy
Green transformation of processes:
Reduce R&D operating Promote the application of low- living sector through cutting-edge technology. Relying on its profound technological expertise in formulation,
costs; form green carbon production processes such encapsulation, popping boba, and flavor, the Company has successfully developed the functional nutrient
Develop more energy-
intellectual property; as enzyme catalysis and supercritical products. By deeply integrating active ingredients with sensory experiences, it precisely meets the diverse needs
Efficiency and Cost efficient and low-carbon
enhance ESG extraction; reduce the frequency of of consumers for health management and daily nutritional supplementation. In the development of jam products,
R&D processes.
performance in the physical experiments through digital
the Company achieves outstanding product stability by finely controlling physical properties while preserving
R&D phase. simulation, lowering R&D energy and
material consumption. natural flavors to the greatest extent. Currently, these innovative achievements have been delivered on a large
commercial scale, with product quality consistently benchmarked against international client standards. This not
only strengthens the Company's technological barriers but also provides global consumers with taste solutions of
greater health value.
Focus on the "Health + Natural" engine:
Continue to invest in the R&D of natural
Create innovative products
Open up new market flavors and functional ingredients
that meet market demand
Products and tracks; gain a leading to capture the benefits of the health
(e.g., sugar-reduced, salt-
Services edge; establish consumption upgrade; meet the needs
reduced, and clean-label
industry standards. of niche markets (such as vegetarian,
products).
specific populations) through a
differentiated product matrix.
Nutrient and Food-Grade Popping Boba
Through precise encapsulation technology,
Become a rule-setter, Enhance industry voice: Actively
build competitive participate in domestic and functional ingredients and rich flavors are
Lead industry standards loaded into tiny spheres. The products not
Market and Brand barriers; enhance international industry associations and
and regulatory frameworks.
industry influence the drafting of national standards to only meet consumers' needs for oral health
and brand leadership. establish brand status. management and deep nutrition but
also enable efficient loading and instant
release of flavor components for diverse
Drive digital and intelligent R&D consumption scenarios such as sausages,
Accelerate product iteration Accelerate the speed transformation: Apply AI algorithms to
through digital and of R&D iteration; assist in flavor creation and formula spicy strips, and chewing gum.
Resilience
intelligent technologies reduce reliance on optimization; achieve remote R&D
Enhancement
such as AI-powered flavor subjective human collaboration through digital platforms
creation. factors. to enhance R&D continuity during
supply chain disruptions.
? Identified Opportunities Related to R&D and Innovation
Jam Product Innovation
By precisely controlling physical properties,
Impact, Risk, and Opportunity Management natural flavors are preserved to the
maximum extent. Commercial delivery
has exceeded 26 tonnes, with quality
The Company deeply recognizes the industry opportunities brought by the sensory consumption consistently meeting international client
upgrade. Through continuous technological innovation and R&D investment, it integrates the concepts of standards.
"Environmental Friendliness" and "Health and Nutrition" into the core of its products, effectively responding
to the risks posed by shifting market preferences. The Company is committed to developing nutritious,
environmentally friendly, and resource-efficient products, building a core moat in sensory technology
through the constant iteration of its core technologies. ?Innovative product achievements ?Capsule, flavor, and concentrate products
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Breakthroughs in Cutting-Edge Key Technologies
Metrics and Targets
The Company has successfully broken through microsphere encapsulation technology,
achieving a core flavor load of 20-30% with an encapsulation rate stably above 90%.
Sustained-
release This technology exhibits excellent heat resistance (withstanding 180℃ for 20 minutes)
microcapsule and enables sustained release in the oral cavity for over 30 minutes, significantly R&D investment Ratio of total R&D expenditure to operating revenue
technology enhancing product flavor stability and resource utilization efficiency. Currently, this
technology is widely applied in fields such as baking, extrusion puffing, and soft drinks. 147.53 million 11.03%
Improving Innovation Incentive Mechanisms
Total number of R&D personnel Total number of R&D personnel with master's degrees or above
The Company recognizes that talent and systems are the twin engines driving innovation. By establishing and
improving an incentive system that covers the entire R&D lifecycle, it effectively mitigates the risk of insufficient 302 persons 53 persons
R&D motivation and seizes opportunities to lead the industry.
Total number of R&D personnel Proportion of R&D personnel with master's degrees or above
The Company has formulated and implemented the Measures for Management of
Strengthening Science and Technology Projects, Implementation Rules for Rewards and Penalties in
with bachelor's degrees
Institutional
Guarantees and
Science and Technology Projects, and Management Measures for Special R&D Projects
(Trial). These documents clarify the full-cycle management process for science and
Standardized
Management technology projects, from initiation, implementation, and acceptance to rewards,
penalties, and intellectual property protection.
Proportion of R&D personnel with bachelor's degrees
To build a reserve of cutting-edge industry technologies, the Company has specifically
introduced the Incentive Plan for the Construction of the Flavor Module Library (Trial). It
Precise has established three types of special awards—development, application, and library- In 2025, the Company initiated 12 science and technology projects. As of the end of the reporting period, a total of
Incentives building—to directly incentivize the successful inclusion of new modules into the library 19 various science and technology projects were in progress, with 9 projects successfully concluded.
Driving Core and their application effectiveness. This has greatly stimulated the team's enthusiasm
Breakthroughs for research on foundational flavor raw materials. This incentive-oriented approach
not only solidifies the technological foundation of sensory science but also lays a firm
institutional basis for the Company to build an intelligent and modular R&D system.
Building on the continuous advancement of technological
R&D and system construction, the professional capabilities
and innovative achievements of the Company's R&D team
have gained authoritative recognition within the industry.
In May 2025, the H&K Flavors Technology Center team
was awarded the title of "Outstanding R&D Team" at the
Conference & China Natural Aromatic Raw Materials
Innovation and Development Conference, reflecting the
Company's R&D strength and technological influence.
Outstanding R&D team?
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Global Layout: Building a Full-Chain Competitive Advantage
International Expansion The Company adheres to a full-chain globalization strategy, building a global supply chain and market network
through the synergistic layout of raw materials, production, and sales. Relying on overseas raw material bases,
international R&D, and regional production facilities, the Company can quickly respond to different market
As a representative enterprise in the flavor and food ingredients industry with a global presence, Huabao Limited demands, enhance supply chain resilience and operational efficiency, and form a full-chain competitive advantage
adheres to a global development strategy. Focusing on a full-chain international layout, it coordinates raw from source to end-user, providing strong support for international business expansion and sustainable growth.
materials, R&D, production, and sales to enhance its global market competitiveness and operational efficiency.
Through the construction of overseas production bases, global collaboration in its R&D system, and a regionalized
sales network, the Company is accelerating its international market expansion, ensuring that its products and
technologies can precisely meet the needs of different regions and providing solid support for sustained global
business growth.
Rooted Overseas for Raw Steady Progress in Production Full-Coverage in Sales
Overseas R&D System: Technological Innovation Empowering Materials As a strategic location in Southeast The Company has established a
Localized Development Since 2007, the Company has Asia, the comprehensive food global sales system covering Europe,
established a raw material processing technology base in Indonesia broke the Middle East, Southeast Asia, and
base in Botswana. Leveraging local ground in May 2025. It aims to achieve Africa, forming a mature operational
The Company has built an open R&D system based on the principle of "Global Wisdom for Global Service". With its natural resources, it has deeply localized production in Southeast structure of "Global Coordination +
state-certified enterprise technology center and post-doctoral research station as core hubs, it has formed a global cultivated extraction processes to Asia and shorten the supply chain Regional Cultivation".
collaborative network covering overseas R&D centers and bases in Germany, Singapore, Indonesia, and other ensure the stability of the global response cycle.
locations. At the same time, the Company has multiple enterprise technology centers and laboratories in Hong supply chain from the source,
Kong, Shanghai, Jiangxi, Guangdong, Fujian, and Hunan, China, achieving integrated coordination of domestic and effectively mitigating the risks of
international R&D resources. This system not only supports regional R&D and innovation but also keenly captures international trade fluctuations and
cutting-edge global technologies and market demands, creating a synergistic force for collaborative innovation and supporting business development in
providing continuous technical support for its international business. Africa and other overseas markets.
Case: Debuting at SIAL Interfood 2025 in Indonesia to Deepen Localized Services in Southeast Asia
In November 2025, the Company's subsidiaries, PT Huabao Food and Huabao Asia Pacific, jointly
European R&D Outpost Asia-Pacific Innovation Hub Global R&D Collaboration
participated in SIAL Interfood 2025 in Indonesia. During the exhibition, the Company integrated the strengths
of its multiple brands for the first time, delivering systematic solutions from flavor profile design to product
The Holzminden R&D The Singapore Asia- Leveraging its global implementation, helping local brands shorten their development cycles. Relying on a responsive model of
Center in Germany Pacific R&D Center collaborative R&D "Global R&D + Localized Service", the Company's products have been successfully introduced into numerous
boasts nearly 20 focuses on food R&D, system, the Company has well-known hotels, food service, and bakery channels in Indonesia, marking a new stage of high-quality
years of technological conducting regional flavor accumulated a certain development for the Company's localization strategy in the core Southeast Asian market.
expertise, focusing on the customization, regulatory level of technology and
development of tobacco system development, patents. In the future,
flavors and heated-not- and digital R&D projects the Company will focus
burn (HNB) tobacco flavor to meet the needs of the on advancing R&D and
solutions, providing ASEAN and Asia-Pacific applications in cutting-
technical support for the markets. edge fields such as
global market. synthetic biology, sensory
and neuroscience, and
"AI+", continuously
strengthening the
technological foundation
for its international
development.
?SIAL Interfood in Indonesia
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Intellectual Property Protection
Case: Rooted in Botswana, Building a Model of China-Africa Economic and Trade Cooperation
The Company strictly complies with national laws and standards such as the Patent Law of the People's Republic of
In June 2025, the Botswana Investment and Trade Centre (BITC), along with a delegation of 13 mainstream China , the Copyright Law of the People's Republic of China , and the Enterprise Intellectual Property Management
media representatives, conducted an in-depth visit to F&G in Africa. As the Company's strategic fulcrum Specification . It has also formulated internal regulations, including the Measures for the Publication of Papers
in a core global raw material region, F&G Africa has, since its establishment in 2007, driven the upgrading and Application for Patents of Huabao Flavours & Fragrances Co., Ltd . and the Implementing Rules for Patent
of the local supporting industrial chain by exporting advanced intelligent manufacturing equipment and Management of Huabao Flavours & Fragrances Co., Ltd ., to further refine and clarify the creation, protection, and
standardized quality inspection systems. In terms of localized operations, the localization rate of the utilization of intellectual property.
Company's management has reached 90%, and outstanding employees are regularly selected for exchange
and study at the China headquarters, effectively enhancing the skill levels of local professional talent.
Furthermore, F&G Africa actively fulfills its social responsibilities by creating employment, increasing export
Overseas trademark registration Compliance management
earnings, and organizing China-Botswana cultural exchange activities. It has vividly established a positive
image of a Chinese enterprise operating steadily overseas and promoting people-to-people bonds, laying a · Strategic layout across 8 countries · Introduced an intelligent compliance
solid foundation for the Company's in-depth expansion into African and global markets. and 6 categories management platform
· Completed registration of 31 overseas · Integrated a dynamic regulatory database
trademarks covering 20+ major global markets
Key Performance
?The Delegation Visits F&G in Africa
In 2025, the Company published 1 SCI paper.
Case: Groundbreaking of the Indonesian Integrated Base, Opening a New Chapter in
Global Expansion
As of the end of the reporting including utility model patents design patents
In May 2025, the groundbreaking ceremony for the PT Huabao Food integrated base was officially held in period, the Company holds
Jakarta, marking the substantive construction phase of the Company's localized presence in Southeast
Asia. This base integrates production, R&D, and office functions, aiming to significantly enhance the 331patents
Company's product delivery efficiency and comprehensive service response capabilities in the Southeast
Asian market. The event received widespread attention and
positive coverage from authoritative domestic media such
as Xinhua Finance and ifeng.com, as well as local Indonesian
media including Antaranews and Foodreview. As another
milestone in the Company's deep participation in the high-
Number of Patents Held 2023 2024 2025
quality co-construction of the "Belt and Road" initiative, the
construction of the Indonesian base has not only won the
trust of the local political and business communities and
customers but also reflects Huabao Limited's ambition to Count 256 268 331
build a full-chain global network covering "Raw Materials-
R&D-Production-Sales" and to realize the vision of "Chinese
Flavours Captivating the World". ?The Groundbreaking Ceremony
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Through the collaborative construction and integrated application of the above systems, the Company has achieved
Digital Transformation and Intelligent Operations data sharing and business synergy, continuously improving operational efficiency, resource allocation capabilities,
and management refinement. As digital systems are continuously optimized and intelligent applications are
progressively deepened, the Company's digital transformation will further empower business development,
Huabao Limited regards digital transformation as a core measure to drive high-quality development and enhance
enhancing overall operational resilience and industry competitiveness.
operational resilience. The Company is committed to empowering the entire business chain with information and
intelligent technologies to achieve deep collaboration in areas such as R&D, production operations, supply chain
management, finance, and human resources. By leveraging a unified management platform, specialized systems,
and artificial intelligence applications, the Company has built an intelligent operation system covering R&D
innovation, manufacturing, and business operations. This has not only improved business efficiency and resource
Digital and Intelligent Empowerment
utilization but also strengthened risk control and information security management, providing solid support for the
Company's sustainable development. Huabao Limited continues to deepen the integration of digital technology with its core business, accelerating
the "AI + Manufacturing" transformation and upgrade. The Company is making simultaneous efforts in both
Digital and Intelligent Operations R&D innovation and production manufacturing to shift its business model from "Manufacturing" to "Intelligent
Manufacturing".
With the goals of improving operational management efficiency, strengthening risk control capabilities, and
supporting high-quality development, the Company systematically promotes digital transformation and In terms of R&D and product innovation, the Company is vigorously developing "AI+" intelligent flavor creation
continuously refines its digital management system around core business processes. Based on a unified business applications. Its independently developed artificial intelligence flavorist, Arobot, has been put into use. The
management platform, combined with specialized business systems and intelligent applications, the Company has Company continues to expand the application of artificial intelligence technology throughout the entire value
gradually established a digital operation system covering R&D, production, supply chain, finance and capital, and chain, including fragrance creation and R&D, flavor analysis, formula structure optimization, market trend analysis,
human resources management. and consumer insights. By building a foundational database of flavor chromatograms, the Company achieves high-
precision identification and analysis of flavor components, providing data support for product innovation and
The Company uses the SAP system as its core enterprise resource planning platform, integrating key business quality safety, enhancing R&D efficiency and innovation capabilities, and driving the R&D model towards data-
modules such as supply chain, production operations, sales, and finance. It unifies business processes and data driven and intelligent decision-making.
standards to achieve collaborative management of the end-to-end business value chain, providing stable and
reliable data support for business analysis and management decision-making. On this basis, the Company has
introduced multiple specialized management systems for different business scenarios to deepen the vertical
management of core business areas.
Using the SAP System as the Core Enterprise Resource
Finance and Capital Management R&D and Innovation Management
Launched the BPC system to optimize consolidated R&D and Innovation Management: Leveraged the PLM
reporting and analysis processes, achieving automated R&D management platform to achieve collaborative
processing of financial data; established a unified R&D and data sharing across business segments such
capital management platform to enhance capital as flavors and food ingredients; actively explored
coordination and improve allocation efficiency intelligent applications and developed an AI flavor
and transparency through bank-enterprise direct creation and intelligent analysis system, using deep
connections and forecasting models. learning technology to empower precise product
innovation.
?Artificial intelligence flavorist Arobot
Supply Chain and Production Operations Compliance and Internal Operations
Supply Chain and Production Operations: Compliance and Internal Operations: Established
Implemented a procurement management platform a contract management system to create a closed-
to leverage the advantages of large-scale procurement loop risk control and compliance review mechanism, In production and manufacturing, the Company has designated Jiangxi H&K as a demonstration unit to advance
and enhance supply chain collaboration; integrating it with SAP and capital systems; the construction of smart factories. Relying on the SAP ERP system and automated equipment, it systematically
deployed a barcode management system and implemented an EHR system to promote the integrates and optimizes processes in production planning, workshop operations, warehousing and logistics,
seamlessly integrated it with the SAP system to enable digitalization and standardization of human and finished product packaging, achieving digital, automated, and lean management of the production process.
real-time data collection and full-process transparent resources management in areas such as organization,
By strengthening the synergy between production planning and material supply, ensuring precise control of
traceability of materials and production progress. compensation, and recruitment.
key processes, and connecting automated packaging with logistics, the smart factory has effectively improved
production efficiency, product quality stability, and resource utilization.
?The Company's digital operation system
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Production The SAP MRP system provides unified coordination for production plans and material
Information security protection
planning The Company places great importance on information security and data privacy protection, building a strong
and material requirements, enabling automated scheduling and inventory optimization, thereby
management improving production efficiency and resource utilization. defense for its digital assets through a rigorous management structure and a comprehensive system of regulations.
At the structural level, the Corporate Management and Information Department coordinates overall efforts,
while dedicated administrators in each subsidiary handle daily maintenance, data backup and recovery, and
security incident response, forming a collaborative defense mechanism of "Centralized Coordination and Local
Workshop The intelligent barcode system supports precise material feeding and process control,
Implementation". At the institutional level, the Company has formulated and strictly enforces the Information
production and reducing production errors and waste, and enhancing production stability and product
quality control Security Management Regulations, which comprehensively regulate physical, network, system, and data security.
quality.
These regulations cover a full range of scenarios, from employees' daily conduct guidelines to emergency responses
for natural disasters, ensuring that information security work is well-documented and rule-based.
Automated packaging lines and logistics systems enable rapid conveying, filling, In addition, the Company has established a regular security audit mechanism. Annual audits are conducted each
Automated
packaging and capping, and palletizing of finished products, reducing manual labor intensity while year, including internal audits of IT infrastructure and the information security management system. Through
logistics
improving operational efficiency and product consistency. in-depth annual assessments of the effectiveness of existing security measures, it continuously optimizes
management processes. This not only enhances system stability but also significantly raises the information
security awareness of all employees, ensuring that security work is evidence-based and evolves in a closed-loop
manner.
Intelligent and Real-time data collection and analysis across all production stages provide
integrated process management with visual monitoring and decision-making support, optimizing Full-lifecycle data security management
flow
production processes and inventory management.
Hierarchical and classified authorization: Strictly Offboarding data desensitization: When an employee
adhering to the principle of "Least Privilege", access leaves the Company, all system accounts and access
rights are assigned based on job requirements to permissions must be immediately deactivated, and
Perfect integration Highly automated equipment frees up the workforce while retaining space for manual ensure that core R&D data and financial secrets are a dedicated person is responsible for cleaning and
of manual and accessible only to authorized personnel.
automated intervention, supporting flexible adjustments and quality control to achieve human- handing over relevant business data.
operations machine collaborative management.
Strict physical and network defenses
?Overview of the advantages of the Jiangxi H&K intelligent factory Core area access control: Unauthorized personnel are Multi-layered network protection: Firewalls, anti-virus
strictly prohibited from entering key physical areas systems, and intrusion detection devices are deployed.
such as server rooms, which are equipped with 24-hour Regular vulnerability scanning and patch updates are
monitoring as well as fire, lightning, and anti-static conducted to effectively mitigate risks from Trojans,
protection facilities. viruses, and cyber fraud (such as phishing emails).
By applying artificial intelligence to R&D and
innovation and supporting large-scale production
with digital and intelligent factory construction, Comprehensive backup and emergency recovery mechanisms
the Company has progressively built an intelligent
o p e rat i o n a l s y ste m t h at i n teg rate s R & D a n d Regular backup policy: Core business systems are Emergency response plan: For emergencies such as
manufacturing. This promotes human-machine backed up regularly, with backup media stored securely hardware failures, hacker attacks, or natural disasters,
off-site. Regular recovery drills are conducted to ensure the Company has established a detailed emergency
collaboration and upgrades the refined management response process to restore network systems in the
data restorability.
model, laying a solid foundation for enhancing shortest possible time, ensuring business continuity
core competitiveness and achieving high-quality, and minimizing potential losses.
sustainable development.
In June 2025, Jiangxi H&K obtained the L6 certification ?The Company's information security protection measures
for the digital development level of the manufacturing
industry in Jiangxi Province, marking a milestone
in the Company's efforts to digitize manufacturing Key performance
p ro ce s s e s , ref i n e m a n a ge m e n t , a n d e n h a n ce
operational collaboration, providing strong support
for high-quality, sustainable development.
In 2025, the Company had no information security incidents and no incidents of customer
privacy breaches.
?L6 certification for the digital development level of the
manufacturing industry in Jiangxi Province
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Industry Empowerment Case: Attending the 11th National Fragrance and Flavor Technology Exchange
Conference
In August 2025, the Company attended the 2025 11th National Fragrance and Flavor Technology Exchange
Huabao Limited adheres to the concept of open cooperation, continuously promoting the high-quality development Conference, where it chaired an Artificial Intelligence (AI) symposium and delivered multiple technical
and sustainable innovation of the fragrance and flavor industry. The Company actively participates in industry presentations. The Company engaged in in-depth discussions with academicians from the Chinese Academy of
exchanges and technical seminars, collaborating with industry, academia, and research institutions to foster the Engineering and industry experts on cutting-edge topics such as biosynthesis, microcapsule sustained-release
deep integration of cutting-edge technologies, talent cultivation, and science popularization. At the same time, technology, and enzymatic hydrolysis and fermentation. While showcasing its innovative achievements, the
through the development of industry standards and cross-sector collaboration, it enhances industry transparency Company's team also conducted extensive tasting exchanges and on-site inspections with enterprises from both
and public trust, committed to creating an intelligent, green, and international industry ecosystem and driving the upstream and downstream of the industrial chain. Through cross-sector collaboration and resource sharing, the
entire industry chain toward high-value-added and sustainable development. Company is committed to jointly building an intelligent R&D system and green sensory evaluation standards,
promoting the industry's high-quality development toward high-value-added and sustainable goals.
Co-construction of Industry Standards
The Company actively participates in the formulation of group standards and the development of international
sustainable development rules, leading the industry's progress through regulations and standards and promoting
the fragrance and flavor industry toward standardization, green development, and sustainability.
In September 2025, the Company participated In December 2025, the Company participated
in the formulation of the industry's first group in the formulation of the group standard ?The conference venue ?Dr. Wang Hongqiang, Vice President of Huabao Limited's
standard, the Guidelines for Sustainable Technical Guidelines for the Prevention Technology and Innovation Center, chairing the AI symposium
Development Information Disclosure for and Control of Volatile Organic Compounds
Fragrance, Flavor and Cosmetics Enterprises . (VOCs) and Odors in the Fragrance and Flavor
Industry.
Case: Collaborating with industry, academia, and research to innovate industry
science popularization and talent incubation models
In December 2025, the Company provided deep support and participation in the "2025 China Fragrance and
Flavor Industry Science Communication Forum", hosted by the China Association of Fragrance Flavour and
Cosmetic Industries. By sponsoring the "Huabao Cup · 2025 National University Student 'Flavor Elf' Science
Popularization Video Contest", the Company collaborated with nearly 20 universities to tap into the creative
power of Generation Z, breaking down public misconceptions about the industry. The Company not only
dispatched experts to share cutting-edge product commercialization practices, such as black truffle flavor
analysis, but also jointly launched the new year's science popularization talent training program with the
?The Company participating in the formulation ?Guidelines for the Control of Volatile Organic industry association. Through industry-education integration and science popularization, it continues to
of the group standard Guidelines for Sustainable Compounds (VOCs) and Odor in the Flavors and enhance industry transparency, contributing to the healthy development and talent pipeline construction of
Development Information Disclosure for Fragrance, Fragrances Industry
China's fragrance and flavor industry.
Flavor and Cosmetics Enterprises
Industry Exchange and Value Advocacy
The Company actively participates in high-level industry forums and technical exchanges, driving the overall
fragrance and flavor industry toward high-quality development by sharing experiences, showcasing innovative ?2025 China Fragrance and Flavor Industry Science ?The award ceremony for the "Flavor Elves"
achievements, and discussing industry trends. Communication Forum popular science video competition
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Innovation Blueprint: Technology Leading the Global Journey
Industry-academia-research collaboration
Case: Advocating for industry value reshaping and co-building a new world-
class industry ecosystem
The Company continuously explores the frontiers of technology in the fragrance and flavor sector and deepens the
development of a collaborative innovation ecosystem integrating industry, academia, and research. By leveraging
In September 2025, the Company participated in the 2025 China Association of Fragrance Flavour and the academic strengths of renowned universities, it is committed to building a full-chain cooperation model that
Cosmetic Industries (CAME) Annual Conference. At the Entrepreneurs' Forum, it joined renowned domestic spans from basic research and application development to the commercialization of results. Through diversified
and international business leaders to discuss high-quality development paths for the industry. Addressing research cooperation projects, the Company continues to strengthen its technological moat, drive the continuous
pain points such as public misconceptions and a lack of brand communication, the Company proposed upgrading of product flavors and functional ingredients, and lead the industry's transformation toward high-end
a consumer-demand-oriented "Beginning with the End in Mind" brand strategy. It also advocated for and scientific development.
breaking social prejudices through the development of new quality productive forces, deep integration
of global resources, and systematic ESG governance. The Company called on industry peers to adhere to
long-termism, work together to reshape industrial value and public trust, and jointly strive to build China's
fragrance and flavor industry into a world-class, admirable industry that is respected by society and trusted Case: Singapore Polytechnic (SP) and Huabao Asia Pacific establish an industry-
by consumers. academia-research cooperation mechanism
In February 2025, Huabao Asia Pacific signed a memorandum of understanding on industry-academia-
research cooperation with the Singapore Polytechnic (SP) to conduct collaborative research and talent
cultivation in fragrances, food technology, and related cutting-edge fields. By integrating the university's
research advantages with the Company's industrialization experience, both parties are exploring pathways
to translate research achievements into practical applications, thereby enhancing the Company's R&D
capabilities in green, nutritious, healthy, and natural ingredients.
?Signing a memorandum of understanding with the Singapore Polytechnic (SP)
Governance Cornerstone
Building the Foundation for a
Sustainable Future
Huabao Limited insists on solidifying the foundation
for sustainable corporate development through a high-
standard, systematic governance framework. It is committed
to comprehensively enhancing its management level in
areas such as corporate governance, investor relations, risk
prevention and control, and business ethics. Through a
well-defined governance structure, robust internal control
and supervision mechanisms, and transparent, fair, and
compliant operational management, the Company not only
ensures stable operations and the protection of shareholder
rights but also promotes the continuous fulfillment of its
environmental, social, and governance responsibilities,
laying a solid foundation for long-term value creation and
sustainable development.
Corporate Governance /43
Investor Relations Management /46
Risk Prevention and Control /48
Business Ethics /51
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
Governance Structure and Operation
Corporate Governance The Company has established a governance structure with clearly defined powers and responsibilities and
standardized operating mechanisms. The Board of Directors has four specialized committees: the Strategy and ESG
Huabao Limited continuously improves its corporate governance system, focusing on enhancing the
Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Appraisal Committee. To
standardization, transparency, and operational efficiency of its governance structure. The Company strictly adheres
further enhance supervisory effectiveness, the Company's Audit Committee of the Board of Directors exercises the
to laws and regulations such as the Company Law and the Securities Law , and aligns with relevant provisions
powers of the Board of Supervisors, responsible for the compliance supervision of the Company's finances, major
including the Code of Corporate Governance for Listed Companies , the Rules Governing the Listing of Stocks on the
matters, and the performance of directors and senior executives.
ChiNext Market of the Shenzhen Stock Exchange , and the Self-Regulatory Guidance No. 2 for Listed Companies on
the ChiNext Market of the Shenzhen Stock Exchange—Standardized Operation of Listed Companies on the ChiNext The Company clearly defines the division of responsibilities among its governance bodies in terms of decision-
Market , constantly refining and optimizing its corporate governance mechanisms. making, supervision, and execution. It operates in strict accordance with laws, regulations, and internal policies,
continuously enhancing the professionalism of its governance structure to effectively safeguard the legitimate
During the reporting period, in response to the requirements of the new Company Law, the Company made
rights and interests of shareholders and other stakeholders.
significant revisions and improvements to 26 systems, including the Articles of Association, the Management
System for Deferred and Exempted Information Disclosure , the Management System for Raised Funds , the
Management System for Shares of the Company Held by Directors and Senior Management and Their Changes ,
and the Subsidiary Management Measures . It also introduced the Management System for the Departure of The Shareholders' Meeting is the highest authority of the Company. The
Directors . Furthermore, the Company optimized its governance organizational structure by incorporating its former Company convenes Shareholders' Meetings in strict accordance with relevant
supervisory responsibilities into the scope of the Board of Directors' Audit Committee, thereby strengthening laws, regulations, normative documents such as the Company Law and
supervision and checks and balances through the specialized committee mechanism of the Board of Directors. the Securities Law , and the Articles of Association, legally guaranteeing
Through this major reform of its corporate governance system, the Company has formed a governance structure shareholders' rights to be informed, participate, and vote on major corporate
composed of the Shareholders' Meeting, the Board of Directors, and the Senior Management. While streamlining matters. By reasonably scheduling meetings and providing diverse participation
governance levels, this enhances decision-making efficiency and supervisory effectiveness, strengthens the role Shareholders' methods, the Company facilitates shareholders in exercising their rights
of independent directors, provides institutional guarantees for the Company's stable operation and sustainable Meeting according to law, with special attention to protecting the interests of small and
development, reduces governance costs, and optimizes the corporate governance structure. medium-sized shareholders to ensure their legal rights are fully protected.
Company organizational chart
The Board of Directors is the Company's operational decision-making body. The
Shareholders' Meeting
Company strictly adheres to the Company Law , the Securities Law , the Rules
Strategy and ESG Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock
Committee Exchange , as well as its Articles of Association, Rules of Procedure for the Board
Board of Directors
of Directors , and Working System for Independent Directors , to standardize
Office of the Board of Audit Committee Audit the operational procedures and decision-making mechanisms of the Board of
Directors Department Board of Directors, and to ensure that the Board and all its directors perform their duties
Directors with diligence and responsibility.
President Nomination Committee
Remuneration and
Appraisal Committee
Board Independence and Diversity
Corporate Management and
Technology and Innovation
Administration Department
Development Department
Procurement Department
Operation Service Center
Information Department
Human Resources and
Finance Department
The members of the Company's Board of Directors possess diverse professional backgrounds and industry
Marketing Center
Investment and
experience, playing an active role in strategic decision-making, operational supervision, and risk management.
Center
The Company continuously focuses on the independence and diversity of its Board. Directors and senior
management have comprehensive professional capabilities in areas such as industry experience, finance, law,
and management, which helps to enhance the overall judgment and risk response capabilities of the Board. By
improving its governance structure and personnel allocation, the Company constantly enhances the prudence and
scientific nature of its decision-making, safeguards the legitimate rights and interests of investors, and elevates the
professionalism of its corporate governance.
All subsidiaries
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
Composition of the Board of Directors
Investor Relations Management
Professional Expertise
Type Name Gender
Industry Risk Financial The Company adheres to the principles of compliance, equality, proactivity, and integrity in investor relations
Experience Management Management management, continuously improving its investor relations management system to enhance the standardization
and effectiveness of communication. In strict accordance with the Securities Law , the Guidelines for Investor
Chairman Xia Liqun Male √ √ √ Relations Management of Listed Companies , and other relevant laws, regulations, normative documents, and the
Non-independent Articles of Association , the Company has formulated and implemented the Investor Relations Management System
Director
Lin Jiayu Male √ √ to standardize information disclosure and investor communication processes, ensuring that disclosed information
is true, accurate, complete, and timely, thereby effectively safeguarding the order of the capital market and the
Non-independent
Director
Yuan Xiaoqin Female √ √ legitimate rights and interests of investors.
Non-independent
Gao Xu Male √ √
Director Information Disclosure
Non-independent
Director
Li Xiaojun Female √ √ √
The Company values the fundamental role of information disclosure in the operation of the capital market and the
Non-independent
Director
Han Pengliang Male √ √ protection of investor rights. To standardize information disclosure management, the Company has formulated and
implemented the Investor Relations Management System , which clearly defines the content requirements, work
Independent
Director
Quan Ze Male √ √ √ processes, and division of responsibilities for information disclosure, ensuring that the information disclosed is
true, accurate, complete, timely, and fair. By improving internal control and supervision mechanisms, the Company
Independent continuously enhances the standardization, transparency, and overall quality of its information disclosure.
Director
Wu Changyong Male √ √ √
Independent
Director
Yang Jinjian Male √ √ Key performance
In 2025, the Company's disclosed information contained no false records, misleading statements,
or major omissions; the Company disclosed a total of
Key performance: and related disclosure documents, including 4 periodic reports and 49 ad-hoc announcements.
In 2025, the Company's Board of Directors consists of
accounting for 33 %; and 2 female directors, accounting for 22 %.
Investor Communication
In 2025, the Company held two Shareholders' Meetings. The Company continues to strengthen its investor relations management, maintaining communication with
investors through various channels and methods, promptly responding to their concerns, and conveying the
Company's operating conditions, development strategies, and related information to the market, thereby
In 2025, the Company held a total of safeguarding investors' right to know and communicate. The Company also focuses on protecting the rights
and interests of small and medium-sized investors, ensuring fairness and accessibility in the arrangement of
communication channels, preventing selective information disclosure.
and 2 Nomination Committee meetings; the average attendance rate of the
Board of Directors was 100 %.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
Shareholders'
Investor
Stock exchange
announcements
Risk Prevention and Control
communication Investor hotline
Meeting and official
meetings
website The Company consistently adheres to the principle of "Prevention First, Combined with Control", deeply
embedding risk management into the entire process of corporate governance and daily operations. By building
a multi-level and comprehensive risk prevention and control system, the Company not only establishes strong
defenses in areas such as internal control and tax compliance, relying on the "Huabao Flavors Co., Ltd. Tax
Interactive Easy Company visits and WeChat official Management Policy" to ensure that tax filing, payment, and compliance reviews strictly follow legal and regulatory
Q&A research account
requirements, but also enhances its organizational resilience to complex external environments through business
continuity planning. The Company is committed to proactively identifying potential challenges through regular risk
identification, assessment, and early warning mechanisms, ensuring steady business growth and sustainable value
creation in a complex and ever-changing market environment.
? Investor communication channels
Comprehensive Risk Management
Key performance
The Company strictly complies with regulatory requirements such as the Self-Regulatory Guidance No. 2 for
Listed Companies on the Shenzhen Stock Exchange—Standardized Operation of Listed Companies on the ChiNext
In 2025, the Company held a total of 3 investor communication meetings, Market and the Basic Standard for Enterprise Internal Control. Guided by its development strategy, the Company
communicating with 44 investors, continuously optimizes its Comprehensive Risk Management Measures and Internal Control Manual. Leveraging the
three lines of defense model for risk management, the Company has established a "Three-in-One" risk prevention
issued 3 announcements on investor relations communication records, system with clear responsibilities and a well-defined division of labor. Through annual risk identification, analysis,
assessment, and inspection mechanisms, it ensures that risk control requirements are thoroughly implemented in
and responded to 22 investors with a total of 91 replies all business segments.
on the Interactive Easy platform. During its operations, the Company dynamically updates its enterprise risk inventory and flexibly adopts response
strategies such as acceptance, reduction, transfer, and avoidance for identified risks, continuously improving
operational efficiency and management effectiveness. By building a dynamic, closed-loop risk control system that
covers the entire business chain, the Company is committed to effectively creating and protecting shareholder
value, ensuring stable operations in a complex market environment.
Shareholder Rights Protection
While ensuring normal operations and long-term development, the Company protects shareholder rights in
accordance with laws and regulations. It strictly adheres to the Company Law , the Articles of Association , and To keep risks within a tolerable range that is compatible with the Company's development
relevant regulatory requirements, implements the cash dividend policy guidelines for listed companies, and strategy
formulates and executes reasonable and prudent profit distribution plans based on its own operating conditions
and development plans, ensuring the compliance, fairness, and sustainability of dividend decisions.
To ensure that the Company's internal and external information communication is true and
The Company maintains a stable cash dividend arrangement. Building on this, in 2025, it further promoted the reliable
normalization of interim dividends by formulating and implementing an interim cash dividend plan. The relevant
profit distribution plans have undergone the review procedures of the Board of Directors and the Shareholders'
Meeting in accordance with the law. While considering the Company's development needs, these plans To ensure the Company's compliance with national laws, regulations, and policies, and to
continuously enhance investor returns, ensure that all shareholders enjoy dividend rights fairly based on their guarantee that its operations are lawful and compliant
shareholding ratios, and protect the legitimate interests of small and medium-sized investors.
To improve the efficiency and effectiveness of business activities and reduce the uncertainty in
achieving business objectives
Cash dividend distribution in 2025
To establish a comprehensive risk management system that aligns with the Company's overall
Q1 2025 Q3 2025 Full Year 2025 (Proposed) objectives, avoiding major losses due to catastrophic risks or human error
RMB 30,794,000 RMB 30,794,000 RMB 18,476,400
?Overall objectives of the Company's comprehensive risk management
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
Internal Control Management
Governing body
The Company is committed to building an internal control network that covers all business processes and runs
Accountable to stakeholders and assumes oversight responsibilities through all stages of decision-making, execution, and supervision. The Company has formulated and issued
the Internal Control Manual , which, with total risk management at its core, embeds key prevention and control
Functions of the governing body: integrity, leadership, transparency
requirements such as anti-fraud and anti-bribery into business processes and management systems, solidifying the
bottom line and red line to ensure the achievement of overall internal control objectives.
Management Internal audit Internal Audit and Evaluation External Independent Audit
Take actions (including risk management) to achieve organizational objectives Independent assurance services
The Audit Department strengthens its risk The Company engages an external audit firm to
identification and assessment functions in daily conduct an independent audit on the effectiveness
audit work, continuously confirms the effectiveness of its internal control system. The audit firm has
Functions of the first line Functions of the second line Functions of the second line of internal control operations, and promotes the issued an unqualified internal control audit report,
Provide products/services Provide expertise, support, Provide expertise, support, transformation of internal control management fully affirming the reasonableness of the Company's
to customers; monitoring, and constructive monitoring, and constructive from "Passive Compliance" to "Proactive internal control design and the effectiveness of its
Manage risks challenge on risk-related challenge on risk-related Prevention", thereby consolidating the foundation operation.
matters matters of risk prevention and control.
?Specific measures for internal control
Huabao Limited's three lines of defense model for risk management
Business Continuity Management and Plan
The Company has established and continuously improves its business continuity management system to
图例 : Accountable and Authorize, guide, Maintain consistency, enhance its ability to recover critical business operations in the event of emergencies or external shocks, thereby
reporting to provide resources, and communication, safeguarding the fundamental rights and interests of customers and relevant stakeholders. Centered around the
supervise coordination, and Business Continuity Plan Management Procedures , the Company has developed supporting policy documents such
mutual collaboration as the Incident and Emergency Response Management Regulations , Business Impact Analysis and Risk Assessment
?Huabao Limited's three lines of defense model for risk management Control Procedures , and Business Continuity Strategy Management Procedures , and has formulated corresponding
emergency plans for different business scenarios. Through regular emergency drills and business impact analyses,
the Company verifies the applicability and effectiveness of its plans and continuously identifies and manages
Case: Special Training on Total Risk Management to Enhance Compliance and potential risks.
Risk Control Awareness Among All Employees
In July 2025, the Company organized the "Special Training Business impact analysis (BIA) Business continuity
on Total Risk Management" through an online platform, and risk assessment (RA) strategies and solutions
achieving full employee coverage. The training covered
systematic knowledge including basic risk management Operational
t h e o r i e s , t h e tota l r i s k m a n a ge m e n t f ra m e w o r k , planning and
processes, and management tools. It also provided in- control
depth interpretations by combining Huabao Limited's
risk management practices with the latest industr y
information. Through this special initiative, the Company Business continuity plans
Drills and testing
has integrated a risk prevention and control culture into and procedures
its daily operations, enhancing the ability of all employees
to identify, assess, and respond to risks, thereby building
?Huabao Limited's business continuity management method
a solid talent guarantee and awareness defense for the
Company's stable operation. ?Training framework
By implementing the business continuity plan, the Company can effectively reduce the impact of unforeseen events
on its business operations, enhance its overall risk resilience, and further ensure its sustainable development and
market competitiveness.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
In terms of system building, the Company continuously improves its system around anti-fraud and anti-bribery
Business Ethics management and has formulated and implemented a number of management systems such as the Anti-fraud, Anti-
bribery , and Whistleblowing Management System, Anti-fraud and Anti-bribery Management Measures, Working
Rules for the Anti-fraud and Anti-bribery Working Group, Detailed Rules for Receiving and Giving Gifts , and Detailed
Huabao Limited adheres to the principles of legal compliance and integrity in its business activities, conducting Rules for Prohibiting Private Agreements . These systems make clear provisions on codes of conduct in business
responsible business practices according to high standards and strictly managing behaviors such as fraud, bribery, dealings, prevention of conflicts of interest, management of gifts and entertainment, and reporting, investigation,
and unfair competition. The Company has established a robust business ethics management system and has and handling of violations, providing an institutional guarantee for the standardized and institutionalized operation
obtained ISO 37001 Anti-bribery Management System certification. It has made clear provisions on the compliance of anti-fraud and anti-bribery work.
obligations of its employees and their relatives, subsidiaries, and business partners in business dealings, requiring
them to strictly abide by laws and regulations related to anti-commercial bribery, anti-corruption, and anti-unfair Anti-bribery Objective Achievement Status
competition. Through institutional constraints and systematic management, the Company continuously prevents
the risks of benefit transfer and improper conduct, maintaining the compliance and transparency of its business
activities. Comply with all applicable anti-commercial bribery laws and
regulations in the locations of business operations, maintain
Achieved
a "Zero Tolerance" attitude towards corrupt practices, and
Integrity Building achieve zero bribery incidents throughout the year.
The Company has always regarded integrity in business as the core of its corporate culture, committed to shaping
a "Fair, Transparent, and Compliant" business ecosystem by building a rigorous integrity management system.
?Achievement of anti-bribery objectives in 2025
The Company clearly defines anti-fraud and anti-bribery as the red line for building business ethics, with its core
purpose being to regulate professional conduct, enhance compliance awareness among all employees, and
establish moral standards of integrity, self-discipline, diligence, and dedication. The Company integrates integrity
requirements throughout the entire process of business management and commercial dealings, guiding employees
and external partners to jointly abide by the code of integrity and effectively prevent various compliance risks.
The Company places great importance on anti-fraud and anti-bribery control and has established a clear
organizational structure and division of responsibilities at the governance level. The Company has set up an Anti-
fraud and Anti-bribery Leading Group led by the Board of Directors, with the President as the group leader, to
coordinate and lead the Company's anti-fraud and anti-bribery related work and to make decisions and provide
guidance on major issues. At the same time, the Company has established an Anti-fraud and Anti-bribery Working
Group, which is responsible for the specific organization, implementation, supervision, inspection, and handling of
issues related to anti-fraud and anti-bribery work, and for promoting the implementation of relevant management
requirements in various business units.
Responsible for urging the Company's Anti-
fraud and Anti-bribery Leading Group to
create a company-wide anti-fraud and anti-
Responsible for establishing and improving bribery cultural environment and to establish
Board of and improve an internal control system
the internal control system for anti-fraud Directors
and anti-bribery and ensuring continuous for preventing fraud and bribery, and for
resource investment, and for providing continuously supervising the Company's anti-
necessary guidance and support for the fraud and anti-bribery work.
Anti-fraud and
effective operation of the anti-fraud and anti- Anti-bribery
bribery internal control system. Leading Group
Responsible for the daily specific
The Company's Anti-
work of anti-fraud and anti-
fraud and Anti-bribery
bribery for the Company and its
Working Group
subsidiaries.
Responsible for the specific
anti-fraud and anti-bribery
work of this department/
company. All functional departments and
subsidiaries of the Company
?Huabao Limited's anti-commercial bribery and anti-fraud management system architecture ?Huabao Limited's ISO 37001 Anti-bribery Management System certification
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
The Company has set clear behavioral boundaries for employee integrity, requiring all employees not to participate
Integrity Training in or be involved in bribery, kickbacks, illegal transactions, or other forms of improper benefit transfer. At the same
time, the Company extends the principles of integrity and fairness to the entire process of business cooperation,
explicitly requiring all business dealings and partners to follow open and transparent business conduct norms,
The Company considers business ethics training an important part of its anti-fraud and anti-bribery efforts. By prevent conflicts of interest, and maintain the independence and impartiality of the decision-making process.
conducting regular thematic training, it guides employees to follow professional ethical standards of integrity,
fairness, and probity in their decision-making and actions, strengthens their compliance and self-discipline
awareness, and fosters a corporate culture of integrity and uprightness.
Basic Requirements for
Employee Management When signing their labor agreements, new employees must also sign
the Integrity and Self-Discipline Commitment Letter, which includes a
promise to unconditionally cooperate with the Company's investigations
Case: Conducting Special Training on Anti-fraud and Anti-bribery into anti-fraud, anti-bribery, and other related matters during their
employment and for 5 years after their resignation/dismissal/retirement;
mployees shall not engage in "Fraud" and "Bribery" behaviors as
E
During the reporting period, the Company, utilizing its
defined in the Company's Anti-fraud and Anti-bribery Management
enterprise micro-classroom platform, had the Audit Measures;
Department organize an online course titled 2025 Anti-fraud
and Anti-bribery Training , which was open to all employees. hen employees resign, the Company conducts special departure
W
audits for senior management, department heads, or other personnel
The training content covered the latest typical cases of anti-
designated by the leading group;
bribery and interpretations of relevant laws and regulations,
a basic theoretical overview of fraud and bribery, and an he Company should mark and conduct targeted background checks
T
introduction to the Company's anti-fraud and anti-bribery on prospective senior management, department heads, or other
management requirements and working mechanisms. After personnel designated by the leading group;
the training, the Company also organized an online exam mployees should regularly undergo integrity assessments within their
E
to test the learning outcomes, promoting consensus and departments. For department heads or the leadership management
standardization of anti-fraud and anti-bribery requirements team, fraud and bribery behaviors within the department or by external
at the employee level. business partners they engage with will be an assessment scoring item.
Indicator Unit 2025
Basic Requirements for
Business Partner Management he Company's relevant departments conduct background checks on
T
Average duration of anti-commercial bribery and business partners based on different business types and cooperation
Minutes 60 situations;
anti-corruption training per person
efore establishing and while maintaining cooperative relationships
B
Anti-commercial bribery and anti-corruption with business partners, the Company's relevant departments should
% 100%
training coverage rate conduct compliance evaluations of them, using the results as an
important basis for determining their qualification;
Anti-commercial bribery and anti-corruption
% 100%
training coverage rate for directors hen signing business contracts with customers, suppliers, service
W
providers, contractors, and other business partners, the contracts
Signing rate of employee anti-commercial bribery should contain clear integrity clauses or a separate integrity agreement
% 100% should be signed;
and anti-corruption commitment letters
he working group organizes the establishment of a dynamic
T
Signing rate of supplier integrity agreements % 100% supervision mechanism for business partners to screen and maintain
them. Relevant departments should fill out the Business Partner
Black and White List based on background checks and compliance
Number of confirmed corruption incidents Cases None evaluations, and ensure the list is updated in real time;
According to the special circumstances or requirements of business
partners, the Company's anti-fraud and anti-bribery commitment letter
?Business ethics training performance should be provided as an attachment to the bid or contract.
? Huabao Limited's basic anti-fraud and anti-bribery management requirements
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Governance Cornerstone: Building the Foundation for a Sustainable Future
Reporting and Protection Mechanism Business Ethics Risk Audit
The Company has formulated and implemented the Anti-fraud, Anti-bribery, and Whistleblowing Management The Company considers the business ethics risk audit an important part of its anti-fraud and anti-bribery
System to provide standardized and accessible reporting and complaint channels for employees and business management. By conducting relevant audits periodically or aperiodically, it assesses the operation and
partners. Relevant parties can report fraud, bribery, or other improper conduct and suspicious matters they discover effectiveness of the anti-bribery management system. During the audit process, it focuses on key business links
in the Company's business activities. The Company explicitly promises in the system to strictly keep the identity such as procurement, sales, partner management, and financial operations to identify potential compliance risks
and personal information of whistleblowers confidential and clearly prohibits any form of retaliation. Within the and management weaknesses. For issues found during the audit, the Company promptly communicates with
scope of its duties and authority, the Company ensures that whistleblowers and investigation participants are not relevant departments, analyzes the causes, and promotes the formulation and implementation of corrective
subjected to discrimination, adversarial measures, or other adverse effects due to their reporting. measures.
During the reporting period, the Company conducted internal audits of the anti-bribery management system,
compliance function reviews, management reviews, and governance body reviews as scheduled to ensure the
achievement of the Company's anti-bribery policy and objectives, and the suitability, adequacy, and effectiveness
of the anti-bribery management system. For the issues identified in the audits, the Company has clarified the
Reporting channels requirements and deadlines for rectification and continues to track the implementation of corrective actions to
promote the continuous improvement of business ethics management requirements.
Inform the immediate superior; if the fraud case involves
the immediate superior, you can bypass them and inform
Anti-unfair Competition
a higher-level person
Inform the Company's Anti-fraud and Anti-bribery The Company strictly abides by relevant laws and regulations such as the Anti-Unfair Competition Law and the Anti-
Leading Group or members of the working group Monopoly Law , adheres to lawful and compliant business operations, and explicitly prohibits obtaining competitive
advantages through unfair means such as false advertising, commercial bribery, and infringement of trade secrets.
Whistleblowing email: jubao@hbflavor.com In terms of business cooperation management, before establishing cooperative relationships with partners, the
Company clarifies the anti-unfair competition requirements that all parties should follow in the cooperation
Whistleblowing hotline: 021-67083261 process by signing documents such as the Integrity Agreement and Integrity Commitment Letter to jointly maintain
a fair, just, and transparent market competition order.
Whistleblowing website: Huabao Limited
website - Integrity at Huabao - I want to report
Key Performance
(http://180.166.253.249:8006/report.aspx)
Mailing address: Anti-fraud and Anti-bribery Working
Group, Huabao Flavours & Fragrances Co., Ltd., 1299
Yecheng Road, Jiading District, Shanghai In 2025, the Company had no unfair competition lawsuits or administrative penalties.
?Reporting channels for fraud and bribery incidents
Synergistic Win-Win
Building an Ecosystem of
Excellent Quality
Huabao Limited values partnerships and develops in
synergy with its suppliers, striving to build a sustainable
supply chain. The Company is committed to meeting
customer needs with high-quality products, services,
and strong innovation capabilities, forming a green and
harmonious industrial ecosystem, and jointly fulfilling
corporate social responsibilities.
Supply Chain Management /59
Quality Assurance /62
Customer Co-creation /67
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Synergistic Win-Win: Building an Ecosystem of Excellent Quality
to assess their compliance in business operations, quality management, and fulfillment of social responsibilities.
Supply Chain Management In the environmental dimension, priority is given to suppliers certified with an environmental management
system, and their energy-saving and emission-reduction measures, waste disposal compliance, and environmental
qualifications are inspected. In the labor practice dimension, the Company verifies suppliers' records of social
security fund payments in accordance with the law to ensure a sound labor management system and protect
Adhering to the philosophy of "Fairness and Justice, Synergistic Win-Win, and Green and Low-Carbon", Huabao
employees' legal rights and interests. For Class A core suppliers, a more focused assessment is conducted based
Limited has built a full-process, standardized supply chain management and control system. Through strict supplier
on the "Survey Form for Environment, Occupational Safety and Health, and Labor Rights of Relevant Parties" . This
management, green procurement practices, resilience building, and fair cooperation mechanisms, it creates a
forms a full-cycle ESG supplier evaluation mechanism covering environmental, social, and governance aspects,
responsible, efficient, and sustainable supply chain ecosystem.
achieving a closed-loop management of "admission review - annual tracking - continuous improvement" and
promoting continuous improvement in suppliers' ESG performance.
Supplier Assessment and Management
The Company has established a tiered and classified on-site audit mechanism to strengthen on-site control over
The Company incorporates supplier management into its overall corporate development, formulating a high-risk and core suppliers. The audit content includes production site conditions, configuration of production
supplier management strategy of "Compliance First, Quality-Oriented, Dynamic Optimization, and Synergistic and testing equipment, quality control processes, and compliance of operations. After the on-site audit, a Supplier
Development". By establishing standardized access, evaluation, and exit mechanisms, it cultivates a group of On-site Evaluation Form is created, which serves as an important basis for supplier classification, partnership
high-quality core suppliers and promotes synergistic improvement with the Company in areas such as quality, adjustments, and subsequent management, ensuring that the suppliers' actual operations are consistent with
compliance, and ESG. At the same time, the Company strengthens its transparent procurement mechanism, cooperation requirements.
requiring procurement personnel to sign the "Employee Integrity and Self-Discipline Commitment Letter" and
signing an "Integrity Agreement" with suppliers to ensure the fairness and transparency of the procurement
process. By building long-term and stable strategic partnerships, it ensures the stability and sustainability of the
supply chain.
Green Procurement
The Company practices the concept of green development, integrating environmental protection requirements
Supplier selection and price throughout the entire procurement process to promote the green transformation of the supply chain. It gives
Procurement requirements Supplier qualification audit Sample request and evaluation
negotiation
priority to cooperating with suppliers who are certified with the ISO 14001 environmental management system and
have green production capabilities. In material selection, the Company focuses on promoting the procurement of
Assist quality control and the
Order tracking Sign contracts and issue Budget preparation
environmentally friendly and renewable raw materials and prioritizes packaging and storage materials and auxiliary
warehouse with goods receipt orders materials that are low-pollution and recyclable. This reduces the environmental impact of the procurement process
from the source. At the same time, the Company conveys the concept of green production to suppliers during
cooperation, encouraging them to optimize production processes, improve energy efficiency, and reduce pollutant
Verify invoices and submit Archiving of procurement files emissions. Through collaborative efforts, the Company works to enhance the overall environmental performance of
for payment
the supply chain, contributing to the realization of the "dual carbon"Dual Carbon".
?Huabao Limited's procurement workflow
Supply Chain Resilience
Key Performance
The Company has established a supply chain risk early warning and response mechanism, focusing on key
dimensions such as supplier delivery capacity, quality stability, and compliance risks. Through the Record Form for
During the reporting period, 100% of suppliers signed the Integrity Agreement. Daily Supplier Abnormalities, it tracks issues like material shortages, quality non-conformance, and delivery delays
in real time. A strict backup supplier development system is implemented. If a supplier is evaluated as unqualified,
its qualified supplier status will be revoked, and a backup supplier will be activated or a new supplier will be
developed simultaneously to ensure that production and operations are not affected, thereby maintaining the
The Company specifies the admission criteria for qualified suppliers and has formulated the Supplier Evaluation
continuous and stable operation of the supply chain.
and Selection Control Procedures . The Company explicitly requires its partners to have complete qualifications, no
major violation records in the past three years, sound financial status, and to pay taxes in accordance with the law. The Company has established a multi-dimensional and regular supplier communication mechanism to ensure
The materials they supply must comply with national and industry standards, pass the Company's sample testing smooth and efficient information transmission. For core materials such as additive ingredients, the procurement
and evaluation, and meet the requirements for product formulation compatibility, usage safety, and compliance. If department organizes technical exchanges between suppliers and user departments to clarify quality requirements
a supplier is rated as unqualified (score <70) in a routine ad-hoc evaluation or annual evaluation, or is involved in a and formulation compatibility standards. During daily cooperation, any problems in the supply process are
major quality and safety incident with significant industry impact, or engages in illegal or non-compliant business promptly recorded and fed back, and suppliers are urged to make corrections within a specified time limit. At the
practices, the Company will revoke its qualified supplier status through the corresponding approval process and annual evaluation stage, the evaluation results are fully communicated with suppliers to clarify the direction for
promptly remove it from the List of Qualified Suppliers . improvement and rectification requirements, forming a closed-loop communication mechanism of "Problem
Feedback - Rectification Implementation - Effect Verification". This continuously optimizes cooperation quality and
The Company integrates ESG requirements into the entire supplier evaluation process, building an evaluation
enhances supply chain collaboration efficiency.
system that covers dimensions such as environment and labor practices. It conducts due diligence on all suppliers
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Synergistic Win-Win: Building an Ecosystem of Excellent Quality
Fair Treatment of SMEs Quality Assurance
The Company adheres to the procurement principles of "Fairness, Justice, and Openness", providing equal
competition opportunities for small and medium-sized enterprises.
Governance
Huabao Limited continuously strengthens its foundation of quality governance, having built a comprehensive
quality management system with a clear structure, complete regulations, and extensive certifications. To
effectively implement quality management, the Company has established a flexible and layered quality
management structure. Under this overall framework, each subsidiary independently establishes and
perfects its own quality management structure based on its business characteristics and operational needs.
Each subsidiary has a dedicated quality management department or position responsible for formulating
quality policies and objectives that align with its specific circumstances, and for ensuring that the processes
required for the quality management system are established, implemented, and continuously improved,
Open Procurement Process Equal Competition Cooperation Support thereby comprehensively enhancing the Company's overall quality management level.
In the search and selection Opportunities On the premise of compliance,
of suppliers, the Company The Company adopts the Company provides In terms of institutional support, the Company strictly adheres to the ISO 9001:2015 standard and has
adheres to the principle diversified procurement necessary technical exchanges formulated a series of system documents, including the Quality Manual, Internal Quality System Audit
of "Recommendation not methods such as inquiry and and communication support Procedures, Risk and Opportunity Response Control Procedures, Product Quality Traceability Management
Designation", allowing all competitive negotiation, to small and medium-sized Procedures, and Nonconforming Output Control Procedures, which provide an operational basis for all
qualified small and medium- treating small and medium- enterprise suppliers, helping business segments.
sized enterprises to participate sized enterprises and other them meet procurement
During the reporting period, the Company obtained ISO 9001 quality management system certification.
in bidding and competition. suppliers equally. Partners requirements and grow
Its subsidiaries, Jiangxi H&K and Jiangxi Yifang, have both obtained ISO 9001 quality management system
are selected based on together.
certification and ISO 22000 food safety management system certification.
comprehensive factors such as
quality, price, and service.
?The Company's measures for fair treatment of SMEs
Key Performance
During the reporting period, the Company had no overdue payments to small and medium-sized
? Huabao Limited's quality management system certification
enterprises (SMEs).
Certificate CN19/20345
The management system of
Jiangxi H&K Food Technology
Development Co., Ltd.
Unified Social Credit Code: 91360600MA35KB4NXU
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)
Manufacture of solid seasoning including spice powder, compound seasoning powder, and semi-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
Liz Moran
Business Manager
SGS United Kingdom Ltd
Rossmore Business Park, Ellesmere Port, Cheshire, CH65 3EN, UK
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 Conditions of certification services available on Terms and Conditions | SGS. Attention is drawn to the limitation of liability,
indemnification and jurisdictional clauses contained therein. This document is copyright protected and any unauthorized alteration, forgery or falsification of the content or appearance of
this document is unlawful.
Page 1 of 1
?Jiangxi H&K's quality management system and ?Jiangxi Yifang's quality management system and
food safety management system certifications food safety management system certifications
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Synergistic Win-Win: Building an Ecosystem of Excellent Quality
Impact, Risk, and Opportunity Management
Strategy
The Company has formulated the Product Quality Traceability Management Procedures to build a full-
The Company deeply practices the quality management policy of "Quality First, Pursuit of Excellence" and lifecycle traceability system where "Origin Is Traceable, Destination Is Verifiable, and Responsibility Is
integrates its quality strategy into the overall corporate development. Based on the Risk and Opportunity Accountable". From the receipt of raw and auxiliary materials, workshop production, and finished product
Response Control Procedures, the Company has developed targeted response strategies by identifying warehousing to factory delivery, complete records are kept at each stage. Through multiple identifiers such
uncertain events in external policies and internal operations. as purchase orders, inspection labels, and barcode labels, the entire process of material flow and production
is fully traceable. Relevant departments implement traceability requirements according to regulations,
ensuring that products can be accurately traced at any stage, providing solid support for quality control and
risk response.
Risk Type Risk Description Response Measures
Establish a dynamic regulatory tracking mechanism and
Updates to domestic and international food
Legal and conduct regular product compliance reviews to ensure
safety standards or industry regulations
Compliance Risks that formulas and processes meet standards in real
may lead to a lag in product compliance.
time.
Procurement Production Quality control Relevant
Strictly implement pilot-scale verification procedures; Warehouse
Inadequate assessment of sensory department workshop department labels
R&D and Design products can only be put into production after multiple
stability or safety during the new product
Risks rounds of safety assessments and consumer sensory
development process.
tests.
Quality fluctuations from raw and auxiliary Implement strict supplier access reviews and annual
Supply Chain Risks material suppliers affect the stability of assessments, and establish a diversified supply system
Zone
finished product quality. for core raw materials. Purchase orders Incoming demarcation
material staging
Aging production equipment, process Strengthen visual management on the production site,
Production Process
deviations, or human operational errors conduct regular equipment maintenance, and monitor
Risks
lead to non-conforming products. key processes in real time.
? Identified Quality-Related Risks Incoming inspection & Conformity, non-
labeling conformity &
concession tags
Opportunity Type Opportunity Description Response Measures
Continuous Improvement: Increase R&D investment,
The application of cutting-edge
Technological integrate new technologies into the quality
technologies such as AI-assisted flavor
Innovation management system processes, and use advanced
creation, microcapsule encapsulation, and
Opportunities technologies to enhance product stability and flavor
biosynthesis is maturing in the industry. Material issuance for Production
performance.
production status labeling
Resource Allocation: Actively promote "Naturalness
Market Consumption Explosive growth in end-consumer demand Product Certification"; optimize green extraction
Upgrade for "Natural, Healthy, and Clean Label" processes; leverage the national-level enterprise
Opportunities food ingredients. technology center platform to accelerate the
commercialization of natural products.
Management Innovation: Deeply participate in the
The industry is gradually establishing more
Standardization formulation of industry standards; align with advanced Finished goods Finished goods Sampling, Ex-factory labels,
stringent quality and naturalness testing
and Certification international system certifications (such as ISO 22000) staging status labeling testing & final barcodes & NC
standards, presenting an opportunity to
Opportunities in advance; enhance brand premium and market trust labeling tags
lead industry norms.
through authoritative third-party certifications.
System Upgrade: Improve the Product Quality
The popularization of digital and intelligent
Supply Chain Digital Traceability Management Procedures and build a
traceability systems can significantly
and Intelligent digital full-lifecycle traceability platform where "Origin
enhance supply chain transparency and
Opportunities Is Traceable and Destination Is Verifiable" to strengthen Traceability Traceability Traceability Traceability Responsible
operational efficiency.
collaboration across the entire chain. implementation implementation implementation implementation departments
maintain effective
?Identified Quality-Related Opportunities traceability
?Product identification and traceability flowchart [Please design and enhance the visual]
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Synergistic Win-Win: Building an Ecosystem of Excellent Quality
Product Safety Lean Production
The Company has built a full-chain product safety management system from R&D to sales, embedding safety The Company fully implements the lean production philosophy, continuously improves its management system,
requirements into every business link. The R&D stage strictly follows the innovative product iteration mechanism, and promotes the implementation of various lean initiatives. By encouraging employees to participate in
conducting formula optimization and safety verification through the pilot-scale base for the industrialization continuous improvement activities, propose optimization suggestions, and use innovative methods and scientific
of technologically innovative food ingredients. The procurement stage implements a strict incoming material means to eliminate waste and enhance resource utilization efficiency, the Company continuously advances the
inspection system and issues exclusive inspection labels. The production process strengthens workshop transformation of its production methods towards being more efficient and sustainable. This series of measures
environment and process control, implementing visual kanban management and production status identification has not only significantly improved product quality and production efficiency but also further strengthened the
standards. The sales stage establishes a comprehensive logistics tracking mechanism to ensure that the product Company's core competitiveness, providing solid management support for achieving high-quality development
circulation process is safe and controllable. goals.
The Company places great importance on domestic and international food safety regulations and has established
Case: Launching "Quality Month" Activities to Promote the Implementation of
a "Triple Protection Network" for dynamic quality risk management. It has created a closed loop for risk response
Lean Production
by formulating the "Notification and Recall Control Procedures" and Non-conforming Output Control Procedures.
It conducts special analyses of collected non-conforming product information and assesses the scope and depth of
recalls based on the degree of hazard to ensure that product withdrawals or recalls are rapid and effective. In 2025, Yingtan Huabao organized a "Quality Month" event with the theme "Improving Quality through
Precision Engineering, Reducing Costs with Craftsmanship". Focusing on the goals of enhancing product
quality and cost control, the event guided all employees to integrate lean production concepts into their
Handling process for Type II non-conforming products (finished products, ex-factory products, daily production and management processes. By strengthening quality awareness, promoting problem
and re-inspected products that do not meet the Company's inspection standards) rectification, and solidifying best practices, the Company continuously optimized its production processes
and management mechanisms, transitioning quality management from a periodic activity to a normalized
operation, laying a foundation for improving operational efficiency and high-quality development.
Complete the situation description in Issue a process treatment plan; if necessary, notify
the Non-conforming Product Disposition R&D personnel to propose a technical treatment plan
Form and have it reviewed by a or provide an opinion that technical treatment is not
dedicated person feasible. If temporary formula adjustments are involved,
relevant personnel shall issue a Temporary Flavor Base
Formula. The treatment plan or opinion shall be reviewed
by the manager of the respective department
Retain the original Non- The General Manager or authorized If a business judgment
conforming Product Disposition person shall approve production is required, the relevant
Form and assign a dedicated rework, concession release, or slow- department shall propose a
person to coordinate moving inventory disposal based handling recommendation
subsequent handling on the aforementioned handling
recommendations
?"Quality Month" activity
In cases requiring production rework, In cases of concession release(use In cases of obsolete/unsaleable
the production unit shall rework the as-is authorization) inventory, the relevant department
product according to the process or
technical treatment plan and submit it
, the relevant department shall
annotate "concession release"
shall issue a non-conforming
inspection result and transmit
Indicators and Targets
for normal inspection. If the inspection on the corresponding inspection a copy of the Non-conforming
passes, the product is classified as record, issue the concession Output Disposition Form to the
Key Performance
conforming; if it fails, it shall re-enter release inspection result, and warehouse. The warehouse shall
the non-conforming control procedure simultaneously transmit a copy store it separately and initiate the
of the Non-conforming Product
Disposition Form to the production
scrap approval procedure at the
appropriate time
During the reporting period, the Company had no major liability accidents related to product
workshop or warehouse or service safety and quality.
?Type II Non-conforming Product Handling Process
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Synergistic Win-Win: Building an Ecosystem of Excellent Quality
Customer Privacy
Customer Co-creation The Company incorporates customer data protection into its quality management system, specifies the department
responsible for safeguarding customer information, and implements special management for assets such as
technical materials and business information provided by customers. In accordance with the Record Control
Huabao Limited has always adhered to the "customer-centric" business philosophy, responding to customers'
Procedures and Data Analysis Management Procedures, customer-related information is classified and archived,
personalized needs through in-depth services, and building a foundation of trust with a strict privacy protection
establishing a management mechanism of "Dedicated Personnel, Hierarchical Authorization, and Full Traceability"
mechanism to achieve long-term, win-win success with clients.
to ensure data is used only within authorized scopes. Meanwhile, the Company standardizes the process for
transmitting customer information, using encrypted channels like the OA system for data circulation to prevent
information leakage, loss, or tampering.
In-depth Service
Leveraging the R&D advantages of its national-level enterprise technology center, the Company has established a Establishment Save
full-process customized service system covering "Needs Assessment - Solution Design - Technical Implementation Define responsibilities for the Cover the physical storage,
- Iterative Optimization". It conducts precise demand research based on the product characteristics and market creation, approval, numbering, organization, archiving,
needs of different clients, providing tailored solutions through formula optimization, process adjustments, and inventory management, and environmental control, and
other methods. In the production stage, special production plans are formulated according to customer order distribution and retrieval of borrowing approval process for
requirements to ensure the quality stability and timely delivery of customized products. At the same time, it record forms. records.
promotes the quality assurance activity of "Treating Upstream and Downstream Processes as Each Other's
Customers", incorporating customer satisfaction into the quality objectives of all departments to drive quality
control throughout the entire customized service chain.
The Company has established a standardized customer service process, with the Operation Service Center as the
core liaison department, coordinating all aspects of customer communication, order processing, and feedback
response. In the early stages of cooperation, the Operation Service Center organizes relevant departments to
conduct contract reviews to clarify customer requirements and post-delivery service commitments. During
cooperation, it maintains real-time communication through various channels such as telephone and the OA system
to promptly handle requests like order changes and technical consultations. Completion Disposal
Stipulate the tools for filling out Make judgments based on
The Company has always prioritized customer service and experience, formulating the After-Sales Management forms, quality requirements, retention periods and carry out
System, Customer Communication Control Procedures, Customer Satisfaction Assessment Procedures, Corrective modification standards, and daily authorized destruction of expired
and Preventive Action Procedures , and Risk and Opportunity Response Control Procedures . While consistently management responsibilities. records.
providing safe products that meet applicable legal and regulatory requirements and customer needs, it also
ensures a rapid response and proper handling of various issues reported by customers, thereby enhancing
customer satisfaction. In 2025, through the effective operation of its customer complaint and satisfaction control
procedures, the Company specifically optimized products and services, conducted an annual customer satisfaction ?Flowchart of the Record Control Procedure
survey and issued an evaluation report, deeply analyzed areas of customer dissatisfaction, proposed corresponding
improvement measures, and organized employee training on customer service to jointly promote the Company's
sustained and steady development. The Company has established and improved an information security management system to implement full-
process security control over the storage, processing, and transmission of customer information. In terms of
physical security, protective measures such as access control and surveillance coverage are implemented in
areas where customer information is stored, such as warehouses and office areas. In terms of technical security,
Key Performance electronic media files are regularly backed up, and access passwords and tiered permissions are set to prevent
risks like network attacks and data breaches. The Company regularly supervises and inspects the management
During the reporting period, the Company's customer satisfaction rate was 96.8% of customer information security to ensure that all protective measures are effectively implemented, thereby
genuinely safeguarding customer information security.
Talent Engine
Igniting Vibrant Organizational
Innovation
Huabao Limited has always regarded its employees as
the Company's core assets, comprehensively building a
diverse, equal, and inclusive workplace ecosystem. By
establishing a comprehensive career development system,
the Company provides employees with a multi-level and
multi-dimensional platform for capability enhancement.
At the same time, it focuses on the physical and mental
health and well-being of its employees, committed to
creating a platform where every employee can fully realize
their potential and achieve their career aspirations.
Employee Rights and Development /71
Employee Health and Safety /78
Employee Care and Diversity & Inclusion /85
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Composition of employee compensation
Employee Rights and Development
Monthly Monthly Performance Total benefits
position seniority pay bonus and subsidies
Huabao Limited is committed to building a fair, transparent, and diverse workplace environment. By establishing a salary
comprehensive system for protecting employee rights, multi-dimensional career development paths, and a holistic health
and safety management system, the Company continuously stimulates employees' creativity and sense of belonging.
Strategy
Governance The Company regards talent as its most core strategic resource, not only focusing on the immediate
protection of employee rights but also incorporating the long-term career lifecycle management of talent
The Company has established a management structure coordinated by the headquarters' Human Resources and into its overall development plan. Through the continuous optimization of its talent structure and the
Administration Department, with efficient collaboration from various functional departments and subsidiaries. In dynamic iteration of organizational capabilities, the Company is committed to ensuring an ever-improving
terms of system development, the Company strictly adheres to the Labor Law of the People's Republic of China , match between its talent pool and business development in a complex and changing market environment.
the Labor Contract Law of the People's Republic of China , and the core conventions of the International Labour This supports the steady operation of its main business and the enhancement of its innovation capabilities,
Organization, and has formulated internal management systems such as the Employee Handbook and the thereby providing customers with continuously reliable flavor solutions.
Recruitment Management Policy . By embedding compliance requirements into the entire process of recruitment,
onboarding, employment, and departure, the Company has built a systematic and standardized closed-loop To more systematically identify and address challenges in the human resources field, the Company conducts
employment management system, ensuring that human resources management practices operate soundly in-depth analysis of internal and external factors related to employee rights and development and has
within the legal framework. formulated targeted response measures.
Compliant Employment Explanation of Financial
Risk Type Risk Description Response Measures
Impact on the Company
The Company adheres to the principles of equality and fairness in employment, and at the institutional level, it resolutely In the short term, this
mechanism for equity incentives,
prohibits illegal practices such as child labor and forced labor, and strictly protects the rights of underage workers. In The Company's flavor formulations increases recruitment
setting scientific and challenging
and new product development rely and training replacement
talent acquisition, the Company implements a differentiated talent strategy, focusing on building a talent pipeline on core technical and managerial costs. In the medium to
performance targets to adapt to the
for R&D innovation and composite management. By establishing diverse recruitment channels and a mechanism for industry's long-term development
talent. As industry competition long term, it leads to a
Risk of Core cycle. 2. Improve the employee
attracting mid-level management elites, the Company continuously strengthens its talent foundation. At the same time, intensifies and the Company's decline in revenue growth
Talent Loss compensation and benefits system to
through deepening school-enterprise cooperation and special training programs for fresh graduates, it builds a talent performance pressure increases year due to R&D delays and
retain core talent with benefits above
reserve for strategic positions, providing a continuous driving force for the Company's sustainable innovation. by year, this may lead to the loss of the loss of customer
the market average. 3. Enhance the
core talent, affecting R&D progress resources, as well as a
construction of the talent pipeline,
and business stability. decrease in the return on
systematically cultivating core key
Compensation and Benefits R&D investment.
personnel and a reserve force.
The failure of the incentive
The Company strictly complies with national and local regulations regarding wage payment and welfare benefits, implementing plan may lead to the loss 1. Break down performance targets to
If performance targets are not
internal systems such as the Compensation Management Regulations and the Employee Performance Appraisal Management of core employees, which various departments and implement
met due to fluctuations in the
Measures. It has established a competitive compensation system based on job value and guided by performance. The Company Risk of
macroeconomy or industry
in turn could result in phased incentive measures to hedge
has established a performance management and evaluation system covering both individuals and teams, combining goal Macroeconomic insufficient momentum risks. 2. Strengthen market analysis
sentiment, the failure of the incentive
Fluctuations for R&D and market and product innovation, focusing on
setting with team performance assessment. Performance evaluations are conducted at least annually to ensure that the results plan will dampen employee morale
expansion, exacerbating new product promotion to ensure
objectively reflect the actual performance of employees and teams. and lead to team instability.
the risk of performance revenue .
decline.
On top of legally required contributions to "Social Insurances and One Housing Fund", the Company has built a multi-layered The Company is advancing its
benefits plan that includes statutory benefits, special allowances, and corporate care initiatives. dual-engine strategy of "Digital
and Intelligent R&D + Data-Driven
While improving short-term compensation and welfare benefits, the Company continues to enhance its medium- and long-term Operations". With the widespread
Inability to meet
incentive mechanisms. In 2025, the Company implemented a restricted stock incentive plan, granting a total of 18.10 million application of PLM systems, BI
customers' green Formulate a systematic training
restricted shares to 135 incentive recipients for the first time. The recipients include directors, senior management, and core systems, and AI flavor creation
Risk of Lagging demands, leading management system to provide
technology, if existing employees
management, technical, and business personnel of the Company (including its holding subsidiaries). The relevant incentive Skill Iteration to loss of orders and precise empowerment for employees
cannot quickly master the operation
arrangements are linked to the Company's operating performance and individual performance appraisals, aiming to strengthen lagging returns on digital at different positions and levels.
of intelligent equipment, low-carbon
investments.
the performance-oriented approach and align employees' personal development with the Company's long-term strategic goals. processes, and digital tools, it will
lead to a decline in production
By continuously optimizing its compensation and incentive mechanisms and creating a warm and supportive work environment, efficiency and products that do not
the Company is committed to enhancing the happiness and sense of belonging of its employees, achieving steady and shared meet green standards.
growth for both employees and the enterprise. ?Identified Talent-Related Risks
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Fair Employment and Diversity & Inclusion
Explanation of
Opportunity Type Opportunity Description Financial Impact on the Implementation Measures Huabao Limited adheres to the core employment standards of "Moral, Visionary, Capable, and Resourceful", and
Company
is committed to creating a diverse and inclusive workplace ecosystem. The Company conducts fair talent selection
through multiple channels such as online recruitment platforms and offline job fairs, strictly prohibiting any
Leverage the 2025 Restricted Reduce the turnover
Stock Incentive Plan to align rate and replacement
discrimination based on nationality, gender, age, race, or religious beliefs throughout the recruitment and decision-
core management, technical, costs of core talent, making process to ensure equal opportunities.
and business personnel accelerate the R&D and
Opportunity to incentive plan and timely fulfill To strengthen its compliance baseline, the Company has established a rigorous onboarding review mechanism.
with the Company's long- launch of new products,
Enhance the the incentive rights; 2. Establish
term development, stimulate increase market share, By conducting background checks on prospective employees to verify their identity, work experience, and age
Cohesion of Core a scientific promotion channel,
employee innovation, and drive revenue and profit compliance, it prevents the hiring of child labor and forced labor from the source. The Company is dedicated
Talent clarifying the promotion standards
strengthen R&D and market margin growth, and
and procedures for each sequence. to building a diverse team with different backgrounds and complementary perspectives, thereby enhancing
expansion capabilities, in line simultaneously improve
with the technology-driven the return on R&D organizational collaboration and market competitiveness, and injecting a continuous stream of inspiration and
nature of the flavor industry. investment. vision into its global innovation.
Employee training and capacity building
Skill upgrades in the
In line with the Company's new production process can The Company places great importance on the continuous appreciation of its talent assets and has established a
product R&D (microcapsule reduce the loss rate of
systematic employee training and skill enhancement system. The Company offers various types of training for
flavors, fragrances for daily raw materials, enhanced
chemical and personal care R&D skills can shorten Improve the classified and graded different job functions and career stages, including onboarding training, redeployment training, job-specific skills
products, etc.) and information the time-to-market training system to ensure that training (internal and external), and training for special types of work. At the same time, the Company offers online
Opportunity for
Employee Skill
security management needs, for new products, and employees' capabilities support learning through its WeCom platform, "Huabao Cloud Academy", providing employees with flexible and convenient
carry out specialized skills information security the achievement of established learning channels to support the continuous development of their professional skills and overall capabilities
Upgrading
training to enhance employees' training can reduce performance goals through precise
anytime and anywhere.
professional capabilities and losses caused by human empowerment.
digital skills, and optimize error, thereby improving
To ensure the effectiveness of this empowerment, the Company has established a comprehensive assessment and
production and operational overall operational
efficiency. efficiency and reducing evaluation mechanism to dynamically track and assess the achievement of training objectives, helping employees
unit costs. achieve all-round growth in both the breadth and depth of their expertise, and building a highly competitive pool of
versatile talent for the Company's global business layout.
Improve the employee rights of employee rights and interests Onboarding training
The introduction of
and interests protection system protection, and build a welfare system
high-quality talent can
(compensation and benefits, that is above the industry average; 2.
enhance R&D innovation All new hires are required to undergo pre-employment training to familiarize themselves with the Company's
Opportunity for occupational health, equity Participate in outstanding employer
capabilities and market
Employer Brand incentives, etc.), enhance the brand awards to strengthen external corporate culture, organizational structure, rules and regulations, and code of conduct, as well as their specific
competitiveness, and
Image performance of employee-related publicity; 3. Establish an employee job responsibilities, skills, relevant work guidelines, and workplace safety protocols.
reduce the premium
topics in the ESG report, boost feedback mechanism to continuously
costs of recruiting high-
the employer brand influence, optimize the working environment Redeployment training
end talent.
and attract high-quality talent. and the rights and interests protection
system.
If the transferred position differs significantly from the original one, training on the new knowledge and skills
required for the new position is mandatory.
?Identified Talent-Related Opportunities
Job-specific skills training
In accordance with the Company's development plan and the operational needs of each department, employees
receive job-specific skills training based on their professional specialization. Such training is categorized into
Impact, Risk, and Opportunity Management internal training and external training, which may be conducted jointly depending on actual circumstances.
The Company deeply embeds talent management measures into every node of its business operations. Training for special types of work
Through institutional innovation and resource investment, it has built a closed-loop management
mechanism from "Precise Talent Attraction" to "Multi-dimensional Empowerment", effectively addressing Personnel in special trades (e.g., electricians) and special positions (e.g., inspectors, warehouse keepers,
various identified talent risks and capturing industry development opportunities. internal auditors) must undergo professional training, pass relevant assessments, and obtain corresponding
qualifications before working with certification.
?Types of Company training
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Diversified Career Development Channels
Case: Deepening Democratic Management, Huabao United Labor Union Congress
The Company is committed to building a barrier-free career advancement environment. Successfully Held
By establishing comprehensive vertical promotion channels and horizontal development
incentive measures, it aligns employees' personal aspirations with the Company's strategic
goals. In February 2025, the Second Session of the Third
Congress of the Huabao United Labor Union was
successfully held, with 41 member representatives
Management track Marketing track Professional track Technical track attending and participating in decision-making.
The congress heard and approved the annual
work report and budget plan of the labor union,
President Chief Client Director Chief Perfumer Chief Engineer ensuring the transparency and compliance
o f i t s w o r k . By co m m e n d i n g o u t sta n d i n g
representatives such as the "Huabao Craftsmen"
...... ...... ...... ...... and actively encouraging representatives to
offer suggestions, the labor union effectively
fulfilled its role of serving employees and acting
as a communication bridge. While safeguarding
Supervisor Client Executive Perfumer Assistant Engineer
employees' right to democratic participation,
it also gathered talent momentum for the ?The member representative congress
Company's high-quality development.
?Multi-sequence promotion channels
Democratic Management
The Company is committed to building harmonious labor relations. By establishing diversified democratic
management and communication channels, it ensures that employee demands are responded to efficiently. Case: Guangzhou Owada Successfully Holds Employee Representative Congress
In February 2025, Guangzhou Owada, a subsidiary
of Huabao Limited, successfully held its employee
representative congress, with all 15 employee
Smooth Communication Bridging Role of the Labor Union Closed-Loop Satisfaction representatives attending and participating in
Channels Management decision-making. The congress focused on the
in-depth implementation of production safety
The Company has set up As a joint organization The Company conducts an annual
responsibilities, appointing members of the
whistleblower boxes, suggestion democratically elected by employee satisfaction survey to
boxes, and rationalization employees, the labor union systematically collect genuine production safety committee and safety officers at
proposal boxes to actively solicit regularly collects employee feedback from employees on all levels on site, and approved the annual labor
employee opinions and feedback demands and suggestions aspects such as workplace health union financial budget. By building a direct and
on company operations and and promptly reports them to and working environment. For extensive communication platform, the Company
management. the management, effectively items with lower satisfaction,
actively listened to representatives' opinions and
safeguarding the will and the Company implements
interests of employees. targeted rectifications and suggestions on corporate culture construction and
provides feedback on the results, daily operations. While safeguarding employees'
continuously optimizing the right to democratic participation, it further
corporate cultural atmosphere strengthened the foundation of grassroots safety ?The employee representative congress scene
and enhancing organizational
management, achieving an alignment between
cohesion.
corporate development and employee interests.
?The Company's Democratic Management Measures
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Metrics and Targets Employee Health and Safety
Safety is the prerequisite for development, and health is the foundation for employees. Huabao Limited, based
on its business characteristics, places employee health and safety management as an operational priority. The
Key performance Company strictly adheres to relevant laws, regulations, and industry standards to effectively protect the physical
and mental health and occupational safety of every employee. The Company consistently upholds the policy of
"Safety First, Prevention Foremost" and ensures the stable operation of its production and business activities by
setting the following annual goals:
In 2025, the Company had a total of male employees emale employees
Prevent major and severe Maintain a 100% Maintain a 100% work safety training
work safety liability accidents occupational health coverage rate for all employees and
and strive to achieve the goal examination coverage rate for ensure that all employees hold a
of "Zero Fatalities" for employees in positions with certificate (education card) to work.
the year. occupational hazards.
The Company employed and
Achieved Achieved Achieved
Work Safety
The Company strictly complies with national laws and regulations related to work safety and continuously
The Company achieved a 100% social security coverage rate for its employees. improves its work safety management system, centered on core policies such as the "Work Safety Management
During the reporting period, there were no confirmed incidents of discrimination, Regulations" and the "Work Safety Responsibility System" . By establishing a safety management committee
and specialized working groups, the Company has formed a management structure with coordinated planning
forced labor, or child labor.
and hierarchical responsibility, ensuring that work safety responsibilities are implemented at all levels and in all
positions. The Company has built a safety management network covering all employees, organized the signing of
the "Employee Work Safety Responsibility Letter" , and, under the unified guidance of the headquarters, promoted
the establishment of standardized management guidelines in all subsidiaries. It strictly enforces three-level safety
education, ensuring that frontline personnel can only start work after passing an assessment, thereby solidifying
the foundation of safety management from the source.
In daily management, the Company continuously strengthens its risk prevention and control philosophy of
The Company conducted a total of with an annual training investment of
"Prevention Foremost" through regular safety training, daily inspections, and special checks. At the same time, it
injuries, constantly enhancing employees' safety awareness and emergency response capabilities. The Company
is committed to creating a safe and stable production and operational environment. To date, the Company's
headquarters, Shanghai branch, and subsidiaries Yingtan Huabao, Guangzhou Hua Fang, and Fine Taste Biological
Technology have all obtained ISO 45001 Occupational Health and Safety Management System certification.
The employee training with a total of and an average participation of
coverage rate reached
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Training Courses and Content
Case: Reinforcing the Safety Red Line, Jiangxi H&K Launches a Special Campaign
for Safety Helmet Inspection and Rectification
Maintenance Operation Skills Training Special Equipment Safety
In 2025, Jiangxi H&K strictly implemented its primary responsibility for work safety and launched a six- Management Training
Return-to-Work Training
month special campaign for safety helmet inspection and rectification in key areas such as forklift and
Corporate Fire Safety Knowledge
warehouse operations. The Company established a special team with the primary person in charge as the Confined Space Safety Training
first responsible person. Based on national standards, the team conducted a comprehensive check of the Company Rules and Regulations
safety helmets' "Two Certificates and One Label", product quality, and service life, and strictly prohibited Company-Level Three-Level Safety Education
frontline personnel from using counterfeit and substandard protective equipment. By establishing a
Huabao Limited's Safe and Secure Workplace
dynamic management ledger for safety helmets and providing specialized user training, the Company
Creation - CPR AED First Aid, First Aid
further standardized the procurement, distribution, and disposal processes for labor protective equipment,
effectively ensuring the head protection safety of its employees and enhancing the Company's intrinsic Safe Use of Power Tools Training
safety level.
Occupational Disease Health Training
Safety Warning Film Education for All
Employees
Case: Four-Location Coordinated Emergency First Aid Skills Training
?Jiangxi H&K's work safety training courses
In June 2025, the Company simultaneously conducted employee emergency first aid skills training at its four
production bases in Jiading and Songjiang in Shanghai, and Yingtan and Ji'an in Jiangxi. The event featured
internationally certified instructors who systematically taught employees cardiopulmonary resuscitation Case: Guangzhou Hua Fang Conducts 2025 Annual Fire Emergency Drill
(CPR), the use of automated external defibrillators (AED), and basic first aid skills through a "Theory +
Demonstration + Practical Assessment" model. Employees mastered key emergency operations through
hands-on practice in simulated scenarios. This multi-base coordinated training significantly enhanced the
In November 2025, Guangzhou Hua Fang
on-site emergency response capabilities of the production frontline. It is a concrete action by the Company
organized its annual fire emergency drill, with
to build a "Safe and Secure Workplace for Employees" and implement its occupational health and safety
management goals, effectively strengthening the life safety assurance system for employees.
emergency evacuation and fire extinguishing
operations after a fire alarm. All personnel
evacuated safely and orderly to the designated
area in just 1 minute and 11 seconds. At the
drill site, they completed training on the use of
fire extinguishers and gas masks, with practical
corrections. This drill effectively verified the
rationality of the emergency plan and further
enhanced the fire safety awareness and self-
rescue capabilities of frontline employees in the
?Guangzhou Hua Fang's Fire Drill
event of an emergency.
Key Performance
In 2025, the Company achieved a 100% employee health check coverage rate and
?Emergency First Aid Skills Training
conducted 11 emergency drills for production safety.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Occupational Health Management Chemicals Management
The Company and its subsidiaries strictly comply with the Law of the People's Republic of China on the Prevention The Company strictly adheres to national and applicable international laws and regulations, continuously
and Control of Occupational Diseases and other relevant laws and regulations. They continuously improve improving its chemical safety management system and standardizing the safety and compliance management
the occupational health management system to promote the institutionalized and standardized operation of of chemicals throughout their entire life cycle. Centering on the usage characteristics and risk profiles of
occupational health work. Focusing on occupational health risk identification, prevention, and improvement, the chemicals, the Company has formulated and implemented multiple internal management systems and operating
Company has established a closed-loop management mechanism covering system development, risk monitoring, procedures, including the Standard Operating Procedures for Laboratory Waste Disposal and the Management
and protective measures implementation. System for Precursor Chemicals . These systems systematically manage all stages of chemicals, from procurement,
transportation, and storage to use and disposal, clarifying management responsibilities and operational
In terms of system development, the Company and its subsidiaries have formulated and implemented the requirements, and are supported by corresponding emergency response measures.
Employee Health Management System and the Occupational Disease Prevention Management System , clarifying
the occupational health management requirements and protective responsibilities for different positions, providing
a clear institutional basis for occupational health management. In terms of risk control, the Company regularly Access Control
commissions qualified third-party organizations to conduct occupational hazard factor testing, focusing on
monitoring potential risk factors such as dust, noise, and chemicals, and generating specialized testing reports to Suppliers must provide Material Safety Data Sheets (MSDS).
provide scientific support for the continuous improvement of the working environment. Relevant personnel shall be proficient in applicable regulations and possess
the requisite competency for the safe handling and operation of hazardous
For identified high-risk positions, the Company provides employees with standard-compliant occupational disease chemicals.
protective equipment, including protective clothing, dust masks, earplugs, and protective gloves. It also conducts
regular inspections and replacements to ensure the effectiveness of the protective equipment. At the same time,
all subsidiaries and production bases are equipped with standardized fire cabinets and first-aid kits, stocked with
necessary emergency supplies and common medicines, to provide support for emergency response and medical
assistance in case of sudden incidents. Storage
Operations shall strictly adhere to the Company’s Administrative Measures
for Precursor Chemicals.
Usage must comply strictly with product instructions; records of solution
preparation shall be maintained, and materials stored in designated locations.
Usage
Operations shall be conducted in a standardized manner with items placed in
designated areas.
All procedures must strictly follow prescribed usage protocols.
Incompatible substances shall not be co-stored.
Disposal
?Jiangxi H&K's AED Device, Fine Taste Biological Technology's Fire Cabinet The Safety Officer is responsible for coordinating and managing waste disposal
activities.
Daily supervision shall be conducted, with periodic handover to authorized
entities.
Hazardous waste shall be segregated and stored by category.
?Chemical Safety Management Measures
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Comprehensive Health Care
Case: "Saying Goodbye to Tech Neck and Phubbing" Employee Occupational Health
Training
In terms of health protection, the Company provides all employees with an annual physical examination benefit,
with additional specialized check-ups for employees in specific positions. It has established an Employee
Assistance Program (EAP), setting up both online and offline psychological counseling channels and a 24-hour In May 2025, the Company's united labor union organized a health training session focused on preventing
psychological support hotline. The Company organizes specialized training and group counseling sessions on "Tech Neck". The event featured a professional health instructor who, through a combination of theoretical
topics such as emotional and stress management and workplace interpersonal communication. It also conducts explanations and practical exercises, provided an in-depth analysis of the dangers of poor posture and
regular "Psychological Check-Ups" for all employees, creating a "Safe Harbor" for their mental well-being and
strengthening the line of defense for mental health. shared methods for daily prevention and relief of neck
and shoulder discomfort. Employees actively participated
in on-site training and interactive Q&A sessions,
effectively enhancing their health awareness and self-
Case: Huabao United Labor Union Holds an "Immersive Mindfulness Experience" for protection abilities. This event reflects the Company's
Physical and Mental Empowerment response to common occupational health risks in the
modern workplace and is a concrete measure to improve
its health management system and care for the physical
In May 2025, the Huabao United Labor Union invited a professional instructor to conduct a special training
and mental well-being of its employees. It helps reduce
session on "The Application of Mindfulness Training in Emotional and Stress Management." As a key
the incidence of work-related diseases and improves
component of the "Huabao Happy Workplace" employee care ecosystem, this initiative aims to put the
employee well-being and work efficiency. ?The employee occupational health training event
philosophy of being a "Promoter of a Healthy Lifestyle" into practice. Through mindfulness meditation
exercises and interactive sharing, the event guided employees to learn methods for regulating emotions
and relieving stress amidst their fast-paced work. While enhancing employees' mental health and workplace
happiness, it also fostered a positive and uplifting work atmosphere within the Company.
Case: National Intangible Cultural Heritage "Zhu's Tuina" Comes to Huabao
In June 2025, with the support of the higher-level labor union, the Company's united labor union invited
Professor Zhu Dingcheng, an inheritor of the national intangible cultural heritage "Zhu's Tuina", to conduct
an event at the Company. The event included a lecture on TCM's 'Preventive Treatment' and Workplace
Health Management , and also offered on-site Tuina massage experiences and a session on making wellness
moxa-grass hammers. Professor Zhu explained the concept of TCM prevention and demonstrated simple
Tuina techniques, allowing employees to experience intangible cultural heritage up close and learn practical
health care skills. This event innovated the form of health management, directly helped employees alleviate
work fatigue, and enhanced their health awareness and self-care abilities. It is a concrete practice of the
Company enriching its employee care initiatives and building a positive and healthy workplace culture.
?The event venue ?The National Intangible Cultural Heritage "Zhu's Tuina" Comes to Huabao Event
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Employee Care and Diversity & Inclusion
Case: Themed Team-Building Activities to Enhance Employee Cohesion and Happiness
Adhering to the "People-Oriented" philosophy, the Company continuously enhances employee happiness, sense of
belonging, and cohesion by formulating a series of care initiatives and diverse, equitable mechanisms. This builds In October 2025, Huabao Limited organized an autumn employee team-building event with the theme
a harmonious and symbiotic workplace ecosystem, achieving synergistic growth for both the Company and its "Autumn Harvest in the Fragrant Fields, Fun Together". Through team collaboration projects, group
employees. interactive experiences, and cultural check-ins, the event guided employees to enhance communication,
release stress, and strengthen their sense of cooperation in a relaxed and pleasant atmosphere. The event
Employee Care featured segments such as ice-breaking and collaboration, fun competitions, group dining, and cultural
experiences, covering diverse participation scenarios. This fully mobilized employees' enthusiasm and sense
The Company is dedicated to building a multi-dimensional, full-cycle "Huabao Happy Workplace" employee of involvement, effectively promoting cross-departmental communication and team integration. By creating
care ecosystem. By deeply integrating traditional holiday courtesies with regular welfare benefits, it ensures that a positive, inclusive, and trusting work atmosphere, the Company continuously enhances employees' sense
the warmth of the Company's development reaches every employee. During important festivals like the Spring of belonging and happiness, solidifying the talent foundation for its long-term stable development.
Festival, the Company transforms holiday wishes into a tangible sense of belonging by distributing festive gifts.
At the same time, the Company pays attention to employees' needs at different stages of life and provides more
human-centered support through measures such as parental leave and the provision of nursing rooms, fostering an
inclusive and friendly work environment.
Additionally, the Company actively organizes a variety of cultural and sports activities and physical and mental
empowerment programs. While advocating for a healthy lifestyle, it also provides an interactive platform for
employees to relax, enhance communication, and help them strike a balance between personal growth and family
warmth, achieving a harmonious resonance between work and life.
Case: Spring Festival Employee Care and Welfare Distribution
? The team-building event
In January 2025, the Company's united labor union organized a Spring Festival welfare distribution for
all employees. The union carefully selected festive gifts, including New Year pastries and fruits, to convey
holiday greetings and appreciation to the employees. This initiative is a concrete practice of the Company's
"People-Oriented" philosophy and its commitment to strengthening employee care. It aims to build a more
harmonious and inclusive work environment, unleash the potential of every employee, and jointly promote
the sustainable development of the Company and society.
Case: Family Day Activity Builds Harmonious Employee Relations
In May 2025, the Company's united labor union
held its annual family day event with a "Dopamine
· Spring Market" theme on the Company campus.
Over 100 employees and their families gathered to
participate in diverse activities, including market
games, IP creative surveys, handicraft experiences,
and interactive prize draws. The event aimed to build
a communication bridge between the Company and
employees' families and enhance family members'
understanding of the Company's culture. It is a
concrete measure for the Company to implement its
"People-Oriented" philosophy, create a positive and
harmonious workplace atmosphere, and fulfill its
commitment to employee care. ?The "Dopamine · Spring Market" Theme
?Spring festival employee care and welfare distribution
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Talent Engine: Igniting Vibrant Organizational Innovation
Diversity and Inclusion
The Company provides equal employment opportunities for all employees and prohibits any discrimination
against employees based on factors such as gender, age, race, religious belief, or disability. These requirements are
incorporated into the Employee Handbook, and their effective implementation is ensured through regular training.
Case: Huabao's International Women's Day "Guardian of Her Power" Campaign
In March 2025, on the occasion of International Women's Day, the Company organized a special care activity
with the theme of "Guardian of Her Power". Through internal publicity and cultural activities, the Company
advocates respect for women's diversified career and life choices, and recognition of their unique values
and contributions. The event conveys the corporate culture concepts of inclusivity and equality, and is
committed to creating an organizational atmosphere that supports the development of female employees
and breaks stereotypes, enhancing the sense of belonging of female employees. It is an important part of the
Company's efforts to promote equal hiring and employee care.
?Baduanjin activity, Huabao Asia Pacific employee birthday party
?Guardian of "Her" strength campaign
?Shanghai Yifang's summer cool-down activity
Green Commitments
Safeguarding the Planet's
Ecological Future
As a responsible corporate citizen, Huabao Limited has
integrated the concept of ecological civilization into its
development strategy and built a scientific and systematic
environmental governance system. The Company has
adopted "Governance – Strategy – Impact, Risk and
Opportunity Management – Indicators and Targets" as the
framework for environmental information disclosure to
promote the in-depth integration of green transformation
and sustainable development.
The Company is committed to transforming environmental
protection into an internal driving force for enterprise
development, realizing the organic unity of economic
and environmental benefits through an institutionalized
management system, professional execution capability,
and a continuous improvement mechanism. In the future,
Huabao Limited will continue to lead the industry in
green transformation with high environmental protection
requirements and contribute to the construction of a
better future in which human beings and nature coexist
harmoniously.
Environmental Management /91
Energy and Resource Utilization /100
Waste Management and Circular Economy /102
Addressing Climate Change /105
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Environmental Management
Governance
Huabao Limited has always regarded ecological environmental protection as the foundation of sustainable
development. The Company actively practices the concept of green development, firmly fulfills its corporate
environmental responsibility, and systematically builds an environmental governance system covering the
whole business chain. Through continuous improvement of the management system, strengthening risk
prevention and control, and advancing energy saving and carbon reduction, the Company is committed to
minimizing the impact on the environment in the whole process of operation and realizing the harmonious
coexistence between the enterprise and nature.
Environmental Management
System Certification and Operation
Environmental Risk Management
As of the end of the reporting
period, the main operating
The Company has constructed units of Huabao Limited and
a comprehensive library of its Shanghai Branch, Yingtan
Environmental management environmental laws and Huabao, Guangzhou Owada,
regulations and an internal Jiapin Technology and etc.
The Company has control standard system, and has have passed the ISO 14001
established an environmental formulated and implemented environmental management
management structure with system documents such as the system certification and
clear responsibilities and Environmental and Occupational have established systematic
comprehensive coverage, Health and Safety Management environmental control
forming a three-tier Handbook and the Eight Rules procedures with this framework.
management system under for Environmental Protection The Company controls
the unified leadership of the to ensure that environmental environmental factors in its
headquarters, the synergistic protection requirements are operations in all aspects through
cooperation of all functional effectively transformed into the implementation of the
departments, and the management actions. Each system, the standardization
specific implementation of production unit regularly of processes, monitoring
subsidiaries and production carries out the identification, and feedback, and continual
parks, systematically assessment, and prevention and improvement, so as to
promoting environmental control of environmental risks, promote the enterprise's green
risk management, compliant and organizes drills based on transformation and sustainable
operation, and performance the filed emergency response development with practical
improvement. plan to effectively enhance the actions.
ability of emergency response to
environmental emergencies.
?Huabao Limited, Shanghai Branch, Yingtan Huabao,
Fine Taste Biological Technology ISO 14001 Environmental Management System Certification
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Environment and Operation Full-Cycle
Management Framework
Strategy
Pre-construction：Mainly preparatory activities with low environmental
The Company regards environmental protection as an important pillar of sustainable development. Through impacts
the systematic construction of an environmental risk identification and management system, the green Construction period：Noise, air quality degradation, traffic interference;
development strategy is deeply integrated into all aspects of business operations. The Company identifies short-term impacts requiring control of construction pollution
possible risks in environmental management and promotes the implementation of the strategy through the Operation period：Wastewater, exhaust gas, noise, hazardous waste,
three dimensions of institutionalized management, digital empowerment, and full life cycle construction. It Management of employee health and safety
is committed to minimizing environmental impacts while achieving operational excellence to create a green the Environmental
Impact Phase of a Post-operation：Post-operation: Environmental restoration, security
enterprise benchmark with industry demonstration value. management, order maintenance; requires implementation of post-
Project Throughout
Its Life Cycle tracking and restoration
Dimension Risk Type Risk Event Risk Factors and Impacts Response Measures
The introduction of stricter
Established a library of environmental Videoconferencing rollout
laws and regulations, formulated internal Yingtan Huabao organized more than 10 video conferences throughout
Tightening national or regional
systems such as the Environmental
Environmental environmental protection the year
Policy and and Occupational Health and Safety
Regulations and regulations puts companies under Guangzhou Hua Fang prioritizes online formats for training and
Legal Risks Management Manual and the Eight Rules
Raising Emission pressure to comply, which may
for Environmental Protection , and regularly conferences
Standards increase operating costs or face
the risk of penalties
conducted environmental compliance Environmental Advocacy and Awareness Raising
assessments and emergency plan drills Guangzhou Hua Fang lobby cycles environmental protection videos
Posting energy-saving signs and environmental protection posters
Improper management of Set up a full-time safety and environmental
wastewater, exhaust gas, management organization, implement the Green Operations Paperless and Digital Office
Environmental
Environmental noise, hazardous waste, and ISO 14001 environmental management and Digital Office Jiangxi H&K uses Feishu for meeting minutes to achieve paperless
Operational Accidents During
Compliance and
Risks Production and
other emissions may lead to system, carry out environmental risk Practices operations
Operations environmental pollution, damage identification and assessment, and Jiangxi Yifang implements WeChat Work for process approvals to reduce
Operation
to employee health, or disruption strengthen daily monitoring and emergency
paper printing
of production response capability
Advocating the use of waste paper for printing and changing
reimbursement vouchers to A5 size
Failure or inefficiency of waste
Regularly inspect and maintain Guangzhou Hua Fang implements electronic invoices and electronic
Malfunctioning environmental protection facilities, approval processes
gas treatment facilities, sewage
Technology or Outdated promote the use of high-efficiency
treatment systems, etc., affects
Risks Environmental purification equipment, and implement
emission compliance and
Protection Facilities technological upgrades and process
increases environmental risks
optimization
Plan Formulation and Filing
A weak internal environmental Carry out environmental protection
Lack of Employee protection culture makes it publicity and training, implement paperless Formulating the Emergency Plan for Environmental Incidents
Market and Environmental difficult to fully implement office and electronic process approval, Clarifying risk substances, control measures, and receptor protection
Reputational Awareness and green office, energy saving, and post energy-saving logos, promote Implementation of Emergency Drills
Risks Slow Advancement consumption reduction measures, video conferencing, and enhance the Environmental Fine Taste Biological Technology conducts two environmental incident
of Green Practices affecting the image of sustainable participation of all staff in environmental Risk Control
Green and Emergency emergency drills annually
development of enterprises protection
Operations Management The emergency plan has been filed with the environmental protection
and Awareness department to enhance practical response capabilities
Raising Traditional office and meeting
Technology methods consume a lot of paper Promote the use of digital office platforms
Low Degree of
and and have low process efficiency, (e.g., Feishu), implement e-invoicing and
Informatization and
Management which is not conducive to the e-approval, and advocate double-sided ?Environment and Operation Full-Cycle Management Framework
Digitization
Risks realization of green operation printing and waste paper utilization
goals
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
PT Huabao Food
Case: Guangzhou Owada's Special Training on "Environmental Protection Knowledge"
to Strengthen Employees' Environmental Responsibility Awareness
The Company conducts systematic risk identification work from the initial stage of the project. According
to the project plan, the main environmental impacts identified during the construction phase include
In November 2025, Guangzhou Owada organized a special online training on "Environmental Protection
construction wastewater, decreased air quality, and dust pollution. Through targeted measures such as
Knowledge". The training covered the legal and regulatory framework for environmental protection,
installing temporary septic tanks, entrusting qualified third parties for clearance, standardizing transport
common environmental issues in enterprises and their coping strategies, and practical guidelines for
vehicles, and regular environmental monitoring, the relevant environmental impacts are effectively
environmental standards and norms. It focused on interpreting core regulations such as the "Environmental
controlled, ensuring that all construction activities comply with environmental regulations and reflecting a
Protection Law" and the "Water Pollution Prevention Law", and provided in-depth explanations combined
closed-loop management from identification to response.
with practical content like pollutant discharge standards,
environmental monitoring specifications, and operational
requirements for environmental protection facilities.
T h ro u g h s y ste m at i c t ra i n i n g , t h e e n v i ro n m e n ta l
responsibility awareness and compliance operation
Guangzhou Hua Fang
capabilities of the participants were further strengthened,
enhancing their professional competence in identifying
The Company has established a comprehensive environmental emergency plan system and conducts
and responding to environmental risks. This provided
regular, thorough risk assessments. By systematically identifying various potential environmental risks,
solid support for the Company to continuously improve its
formulating targeted preventive measures, and closely integrating emergency plans with daily operations,
environmental management processes and promote the
the Company organizes regular drills and training to comprehensively enhance its risk prevention and
coordinated development of production, operation, safety, ?Special Training on "Environmental
Protection Knowledge" emergency response capabilities, ensuring the effective implementation of environmental risk management.
and environmental protection.
Guangzhou Owada
Impact, Risk, and Opportunity Management
The Company has established a scientific and systematic environmental risk management process. Based on
The Company adheres to national and international standards and mainstream international climate
the Risk Assessment of Environmental Incidents , it comprehensively identifies and quantitatively assesses
disclosure requirements to systematically identify and manage environmental and climate-related risks.
various environmental risk substances involved in production and operations. By calculating the ratio of the
Through policy tracking, meteorological monitoring, industry report analysis, and internal assessments, the
quantity of risk substances to their critical thresholds, the Company scientifically determines the risk level of
Company comprehensively identifies physical and transition risks that may affect its assets and operations.
sudden environmental incidents. On this basis, the Company has established a risk prevention and control
It then classifies, prioritizes, and formulates contingency plans, creating management reports that are
system covering emergency material management, improving interception and leak prevention measures,
sent to relevant decision-making and business departments to ensure a systematic and forward-looking
regular emergency training and drills, and building external communication mechanisms. It also conducts
approach to risk response.
regular assessments and improvements, forming a closed-loop management process from risk identification
and level assessment to measure implementation, effectively enhancing its environmental risk prevention
capabilities.
Management Process
The Company has established a full-process environmental risk management mechanism covering "Identification- Fine Taste Biological Technology
Assessment-Response-Monitoring". Each plant regularly analyzes its geographical location and surrounding
environment to systematically identify various environmental risks, including fires, explosions, accidental The Company has established an environmental risk management process based on a closed-loop
emissions of waste gas and wastewater, chemical leaks, and natural disasters, and formulates corresponding management mechanism of "Identification-Evaluation-Control-Update". Through systematic methods
prevention and emergency plans. By clarifying departmental responsibilities, equipping emergency supplies, such as production route analysis, on-site observation, and the input-output method, it comprehensively
forming rescue teams, and conducting scenario drills and employee training, the Company has built an efficient identifies environmental factors in the Company's activities, products, and services. It then uses the yes-
emergency response system to minimize the likelihood and impact of environmental accidents. no judgment method and multi-factor evaluation method, combined with dimensions like environmental
compliance and business impact, to evaluate the identified environmental factors, determine a list of
significant environmental factors, which is then reviewed by the management representative and distributed
to relevant departments for control implementation.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Prioritization and Integration into Internal Processes
Case: Jiangxi H&K's Systematic Environmental Risk Prevention System Construction
Environmental and climate risks have been integrated into the Company's overall risk management system and are
one of the key management topics for the year. Through risk assessment methods, the Company comprehensively
ranks the identified risks based on their probability of occurrence and degree of impact, clarifying management Jiangxi H&K has established a comprehensive and systematic environmental risk prevention system. By
priorities. The control measures are integrated into daily operations, investment decisions, and performance developing and implementing the Safety Risk Grading and Control 'Three Lists' Bulletin Board , it covers a full
appraisal processes. Each subsidiary regularly reports its environmental risk status and improvement progress to range of risk identification and control, from natural disasters (such as floods and lightning) to production
the headquarters, forming a closed-loop management system. operations (such as power distribution safety, mechanical operations, chemical management, high-altitude
work, and forklift transport). The Company has formulated clear preventive measures and emergency plans
for various risk points (such as clearing combustibles in power distribution rooms, equipment maintenance,
PT Huabao Food sewage pool leakage protection, confined space operation management, and boiler safety inspections),
assigning control responsibilities to specific departments and individuals.
In project environmental management, the Company prioritizes various environmental impacts during the Through regular emergency drills, enhanced employee safety training and education, implementation of
construction period based on a risk matrix, listing construction wastewater treatment and dust control as an equipment inspection and maintenance system, installation of safety warning signs, and establishment
high-risk priority management items. Corresponding control measures have been integrated into the project of safe operating procedures, the Company has built a full-chain environmental risk prevention and control
construction plan and daily management processes, serving as key performance indicators to ensure the mechanism covering risk identification, assessment, control, and emergency response, effectively enhancing
systematic and effective management of environmental risks. its ability to respond to environmental and safety emergencies.
Guangzhou Hua Fang Case: Fine Taste Biological Technology's Environmental Factor Monitoring and Evaluation
System Construction
The Company manages identified environmental risks by classifying them according to their probability of
occurrence and degree of impact. High-risk items such as chemical leaks and fire explosions are included To strengthen environmental factor management, Fine Taste Biological Technology has established a
in the annual key control list. Corresponding preventive and emergency measures have been integrated systematic Environmental Factor Identification and Evaluation Control Procedure . This system clarifies a
into the daily operating procedures and performance appraisal systems of each department, achieving the responsibility structure with the Administration Department as the coordinating management unit and all
normalization and institutionalization of environmental risk management. project departments as collaborating executors, comprehensively covering the monitoring and evaluation
processes for environmental elements such as air, water, solid waste, and noise.
The system's content specifically includes: standardized monitoring and disposal requirements for exhaust
emission outlets and generation points, a full-process water quality monitoring mechanism for production
Guangzhou Owada wastewater, underground pipe networks, and main discharge outlets, classified labeling, standardized
storage, and resource management procedures for solid waste, as well as systematic monitoring methods for
noise control, chemical management, and resource consumption.
The Company deeply integrates environmental risk management into its internal management processes.
On the basis of scientifically assessing risk levels, the Company further prioritizes risks according to By formulating standardized monitoring processes, abnormal situation handling procedures, and an annual
dimensions such as the severity of consequences, the likelihood of occurrence, and the urgency of control. commissioned monitoring mechanism by environmental protection departments, the Company fully
integrates environmental compliance requirements into daily operations, providing a solid institutional
guarantee and operational guidance for effectively controlling significant environmental factors and
achieving environmental management goals.
Fine Taste Biological Technology
The Company directly integrates the evaluated significant environmental factors into its objective
management and daily operational decision-making processes, ensuring that the prioritization of
environmental risk control is systematically reflected and dynamically adjusted in resource allocation,
management reviews, and major decisions.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Case: Jiangxi Yifang's Sudden Environmental Risk Assessment
Energy and Resource Utilization
System Construction
Huabao Limited attaches great importance to the efficient utilization and sustainable management of resources.
By building a systematic governance system and differentiated management practices, it is committed to achieving
To comprehensively identify and control environmental risks in its operational processes, Jiangxi Yifang the vision of "Maximizing Resource Efficiency and Minimizing Environmental Impact".
systematically conducted a risk assessment for sudden environmental incidents in March 2025. Through
in-depth research and analysis of the socioeconomic structure, current environmental quality, and Energy Management
environmental risk receptors around the Company's location, combined with potential environmental risk
Guided by advanced international and domestic standards, the Company has established a systematic management
scenarios in all aspects of production operations (including production facility areas, chemical warehouses,
system. In accordance with the ISO 50001:2018 Energy Management System standard, the Company has formulated
exhaust gas treatment facilities, and sewage treatment stations) such as leaks, fires, equipment failures, and
and implemented a series of special regulations, including the Energy Management System , Electricity Saving
extreme weather, the Company scientifically assessed its environmental risk level according to the Method
Management System , and Regulations on Resource and Energy Conservation , providing institutional guarantees
for Grading Risks of Enterprise's Sudden Environmental Incidents and formulated corresponding risk
for energy conservation and consumption reduction. By forming a special working group and conducting regular
prevention, control, and emergency measures.
training, the Company continuously enhances the resource conservation awareness of all employees, ensuring that
The assessment clarified the diffusion pathways of risk substances, established an emergency resource energy-saving and consumption-reducing measures are implemented in every aspect of production and operation.
system covering emergency material management, emergency team building, and internal and external In addition, the Company's annual audits include energy audits covering energy-saving and consumption reduction
communication mechanisms, and ultimately formed a structurally complete and detailed Sudden matters. Through audit evaluations and the implementation of optimization measures, the Company further
Environmental Incident Risk Assessment Report , providing systematic guidance for daily risk prevention and enhances the systematicness and effectiveness of its energy management.
control.
Huabao Limited's energy management and energy-Saving measures
◎T
he Company actively advocates for electricity conservation, requiring employees to turn off lights
when leaving and shut down personal computers and desktop office equipment during non-office
hours to reduce standby consumption.
Indicators and Targets ◎ Promote the use of energy-saving lamps and energy-saving control devices.
◎ The lighting system uses sectional control switches for partial activation, avoiding large-area lighting
waste.
During the reporting period, the Company's environmental performance was stable, with no major Daily Electricity
◎F
ive minutes before work and after work, the department head is responsible for turning on or off
environmental safety accidents and no administrative penalties for ecological and environmental issues. It Management
lighting and electrical appliances, such as air conditioners, fans, lights, and computers, to prevent
has protected lucid waters and lush mountains with practical actions, contributing its corporate strength to power waste when no one is working.
the construction of a Beautiful China. ◎D
uring the lunch break, all lighting and electrical appliances must be turned off, except in special
circumstances.
◎ Air conditioners are uniformly set to standard temperatures, no lower than 26 ° C in summer and no
Environmental higher than 20° C in winter.
Management 2025 Target 2026 Target
Achievement ◎ When the room temperature is below 25° C, opening windows for ventilation is encouraged to avoid
Indicator Category
Air Conditioning turning on the air conditioner.
Usage ◎M
aintenance personnel regularly check the operating condition of air conditioners to ensure timely
System certification 100% of major subsidiaries pass ISO Management repairs.
Achieved Maintain 100% certification
coverage rate 14001
◎W
hen purchasing new equipment, all departments should prioritize power-saving and water-saving
Environmental equipment under the same conditions.
Zero major penalties Achieved Maintain zero major penalties
violation incidents ◎W
ater and electricity should be used reasonably during use, and equipment maintenance should be
New Equipment
done well.
Selection
Environmental All employees receive annual training Increase training duration by
training coverage Achieved ◎R
esponsible for the provision and maintenance of the Company's water and electricity meters, and
rate ≥ 1 time 20% conducts monthly metering statistics.
◎ Regularly optimize energy supply and transmission lines, and conduct regular maintenance to ensure
Emergency drill Each subsidiary conducts annual drills Energy their normal operation.
Achieved Improve drill practicality Management ◎S
trengthen electricity management and strictly control the electricity consumption of each
frequency ≥ 2 times
and Monitoring department
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Water resource management Key Performance
At the water resource management level, the Company's strategy focuses on systematic water conservation Energy Use-Related Indicators Unit 2025
and recycling. By formulating and implementing the Water Resource Management System , it has achieved a
transformation from simple water saving to comprehensive water efficiency management. Each subsidiary, Gasoline Liters 53,240.94
closely combining its own production process characteristics, actively explores alternative and reuse pathways for
water resources by setting clear energy efficiency targets and implementing multi-level process optimization and Diesel Liters 48,840.29
technological transformation. Through a series of in-depth, on-the-ground practices, the Company has successfully
Natural gas m? 586,316
transformed its macro-level green management strategy into measurable and replicable green productivity,
achieving significant water-saving results. Electricity MWh 13,296.57
Purchased Steam m? 843,133
Liquefied Petroleum Gas kg 5,231
Fine Taste Biological Technology
Wastewater reuse: Renewable Energy kWh 23,313.5
The concentrated water generated from the pure water preparation system is transported
to the workshop's cooling water tower circulation system through dedicated pipelines for
reuse as make-up water. Based on purification ratio calculations, the estimated annual water
savings amount to 3,224 tons. Water Resource Use-Related Indicators Unit 2025
Total Water Consumption Tonnes 473,448.96
Guangzhou Owada
Water Resource Recycling:
rainwater for cleaning the park grounds, maintaining the parking lot, and irrigating green
spaces. Waste Management and Circular Economy
and data analysis is used to optimize water management.
Huabao Limited steadfastly implements the principles of "Resource Recovery, Reduction, and Harmlessness",
strategically focusing on advancing the value evolution from "Compliant Disposal—Source Reduction—Resource
Regeneration". The Company not only ensures that all waste is handled in accordance with laws and regulations
but also transforms environmental responsibility into resource value through innovative practices such as recycling
Jiangxi H&K packaging materials and developing high-value by-products, thereby building a closed-loop circular economy
Condensate recovery: model. The Company has established a rigorous waste management system, formulating and implementing
Steam condensate generated during the production process is recovered and reused, saving the Waste Management Control Procedures and the Hazardous Waste Management System to ensure that waste
water resources and energy. management is well-documented and compliant.
Relying on unified management standards, the Company encourages its subsidiaries to carry out innovative
practices tailored to local conditions, ensuring the solid implementation of reduction and resource recovery goals.
Through technological innovation and process optimization, each subsidiary has achieved efficient waste utilization
Jiangxi Yifang
and reduction. At the same time, the Company's annual audits include waste audits to identify opportunities for
Comprehensive Water Conservation: improving waste management performance, continuously enhancing the systematicness and effectiveness of its
consumption per ton of product from 18 tons to 16 tons).
cleaning nozzles for popping pearls, optimizing the cooling water supply for the boiling line,
reusing cleaning water from the aseptic line, and optimizing the coconut rehydration process
(reducing RO water usage). Among these, the coconut rehydration optimization project is Yingtan Huabao
expected to save 14,112 tonnes of RO water annually. Hazardous Substance Treatment:
workshop cleaning.
third parties.
?Water Conservation Practices of Each Subsidiary
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Guangzhou Owada
Case: Guangzhou Owada's Hazardous Waste Management System Construction
Resource Recycling Practices:
floor to implement waste sorting at the source and guide employees on proper disposal. Guangzhou Owada has established a systematic and comprehensive hazardous waste governance system. In
practices to reduce paper consumption; carrying out a toner cartridge recycling program to Pollution by Solid Waste , the Company has formulated the Hazardous Waste Management System , which
prevent secondary pollution. covers the entire process of hazardous waste generation, collection, storage, transfer, and disposal. This
system defines a four-tier management responsibility structure, from the Company's decision-making level
to the executive level, and establishes a clear division of powers and responsibilities: the primary person-
Guangzhou Hua Fang in-charge is responsible for overall decision-making, the management head coordinates implementation,
daily management personnel supervise execution, waste-generating departments control at the source, and
Standardized Disposal:
ledger specialists maintain standardized records.
hazardous waste through a platform. Through system construction and accountability, the Company strictly implements management
hazardous waste to qualified third parties. It also regularly organizes environmental protection training and emergency drills to continuously improve
the compliance level and risk prevention capabilities of hazardous waste management. This governance
practice fully integrates the responsibility for preventing and controlling hazardous waste pollution into the
Jiangxi H&K Company's daily operations, providing a solid institutional guarantee for building a safe and environmentally
Reduction and Resource Recovery: friendly production environment.
hazardous substances to third parties using a "Triplicate Form" model.
steel barrels. Case: Guangzhou Owada's Hazardous Waste Environmental Emergency Drill
In November 2025, Guangzhou Owada organized
Fine Taste Biological Technology a hazardous waste environmental emergency plan
Full-Process Control and Resource Recycling: drill. The drill simulated a hazardous waste handling
third parties for regular transfer. process, including emergency reporting, alarm
and treatment of non-hazardous waste. tested the feasibility of the emergency plan, enhanced
with PE bags, and using them for product transfer to achieve secondary use. disposal capabilities, and laid a practical foundation
residues for sale, turning waste into value. A total of 57.6 tonnes of chicken bone residue was
production safety.
recovered and utilized throughout the year. ?Hazardous Waste Environmental Emergency Drill
Jiangxi Yifang
Key Performance
Classified Recycling and Treatment:
Procedures for Receiving and Storing Raw Materials, which applies to the entire process from Waste Emission-Related Indicators Unit 2025
the entry of raw and auxiliary materials (including raw materials and packaging materials) to
the delivery of the final product. The Company signs recycling and disposal agreements with
suppliers for general waste such as cardboard and iron drums. Domestic and commercial solid waste Tonnes 48.30
semi-finished products. waste
Industrial solid waste Tonnes 2,094.29
?Waste Management Practices of Each Subsidiary
By clarifying job responsibilities and conducting on-site drills, each subsidiary ensures that waste management is Hazardous waste Hazardous solid waste Tonnes 92.56
implemented on the production frontline.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Impact
Addressing Climate Change Risk Category Risk Description
Period
Response Measures
· For foreseeable acute climate risks such as extreme
high temperatures and heavy precipitation, regularly
inspect and reinforce relevant facilities to ensure
Increased frequency and intensity of measures like rain protection are in place, and use
Governance extreme weather events such as heavy
precipitation, high temperatures, and
Short,
Medium,
meteorological monitoring platforms to adjust
production plans in a timely manner
Acute Risks
typhoons, affecting the stability of and Long · Reasonably arrange employee work schedules
The Company has established a climate governance mechanism with the decision-making level providing Company operations and supply chains, Term during high-temperature periods and provide necessary
overall coordination, the management level handling coordination, and the executive level implementing and causing damage to fixed assets heatstroke prevention and cooling facilities and supplies
the work. The decision-making level sets the strategic direction for the Company's climate governance and · Formulate emergency plans for extreme weather
Physical
oversees its overall performance. The management level is responsible for translating strategic requirements events such as heavy precipitation, and explore flexible
Risks
into specific implementation plans and coordinating cross-departmental resources to promote climate operational and delivery models
actions. On this basis, the Company has set up an ESG Climate Project Working Group as the executive
body, responsible for collecting and managing carbon emission data, promoting the practical application Increased hours of high temperatures
· Adhere to water and energy conservation in
of energy-saving and emission-reduction technologies in production and operations, continuously tracking and rising water stress lead to higher
operations to enhance the Company's resilience to
climate policies and industry development trends, organizing climate-related training and capacity building, energy and resource consumption Short,
chronic climate risks
and advancing climate information disclosure in accordance with regulatory requirements to continuously Chronic and equipment maintenance costs for Medium,
· Strengthen employees' awareness of climate risks,
improve the Company's climate governance system. Risks the Company; abnormal fluctuations and Long
improve their emergency response capabilities through
in the procurement prices of natural Term
training, and enhance their awareness of climate change
raw materials due to global climate
mitigation
anomalies affect supply chain stability
In 2025, the Company actively responded to the national "Dual Carbon" goals, integrating the concept of green and
low-carbon development throughout its entire production and operation process, and is committed to building an
environmentally friendly enterprise. In addressing climate change, the Company's ESG Climate Project Working Countries or regions introduce stricter
Group has continued to advance climate risk projects, launched Scope 3 carbon emission accounting for the climate policies, such as imposing · Continuously conduct greenhouse gas emission
Medium
first time to comprehensively inventory carbon emissions across all scopes, and based on this, has preliminarily Policy and carbon emission limits on the Company accounting and consistently reduce emission levels
and Long
formulated carbon reduction targets for 2030 and corresponding response strategies to promote carbon reduction Legal Risks or implementing carbon pricing · Closely monitor developments in industry regulations
Term
across the entire industrial chain. mechanisms, leading to increased and make advance preparations for compliance
investment costs
Professional Support
In the low-carbon transition,
technological upgrades in energy, Short,
By formulating climate change management-related policies, the Company has institutionalized its climate Continuously enhance its own digitalization level and
Technology information, and other areas may require Medium,
governance, established a regular communication mechanism for climate issues, and holds regular special working equipment energy efficiency to build a green and low-
Risks the Company to update the products and Long
meetings to ensure that climate issues receive continuous attention and effective implementation in strategic carbon supply chain
decision-making and operational management. and services it purchases, leading to Term
increased technology investment
Meanwhile, the members of the Company's ESG Climate Project Working Group have rich practical experience
in fields such as energy conservation, emission reduction, and clean production. Through continuous learning · Pay attention to consumer demand for low-carbon
and professional exchanges, the Working Group constantly enhances its professional capabilities in areas such as Transition products and continuously optimize the Company's
greenhouse gas management, analysis of emission reduction technology pathways, and climate risk identification, Risks products and services; expand into the low-carbon food
providing solid technical and management support for the Company's climate governance. Increased consumer demand and higher
ingredients sector, promote the R&D and application of
requirements for services related to Short,
low-carbon technologies, use enzymatic hydrolysis to
Market the low-carbon transition necessitate Medium,
produce low-carbon products, and actively explore the
Risks continuous product innovation and and Long
potential applications of synthetic biology
service quality improvement by the Term
· Prioritize the use of renewable raw materials and
Company
Strategy packaging
· Strengthen the marketing of low-carbon products to
increase consumer awareness
The Company regards addressing climate change as a key strategic direction for its sustainable development
and has systematically built a climate governance system adapted to its business characteristics, referencing External stakeholders have higher
mainstream international climate governance frameworks. The Company is committed to steadily advancing expectations for the Company's climate-
Short, · Maintain close communication with stakeholders and
carbon reduction efforts through various pathways, including technological innovation, management related governance performance and
Reputation Medium, improve climate-related information disclosure
optimization, and supply chain collaboration, to enhance its adaptability and competitiveness in the context information disclosure. Failure to meet
Risks and Long · Establish an ESG management system to enhance
of climate change. these expectations could damage the
Term sustainable development performance
At the implementation level, each subsidiary actively practices climate governance concepts. Through Company's reputation, leading to the
measures such as equipment upgrades, process optimization, and energy structure improvements, they loss of consumers and investors
continuously enhance energy efficiency in their operations. At the same time, the Company incorporates
climate risk considerations into its supply chain management and business decision-making processes,
promoting the establishment of a greener, lower-carbon operating model and contributing to the sustainable Time Horizon Definition: Short-term (0-3 years), Medium-term (3-10 years), Long-term (over 10 years)
development of the industry.
Currently, the Company's analysis of climate-related risks and opportunities covers their impact on the value ? Climate Risk Identification and Response
chain and the Company itself, and corresponding response measures have been formulated accordingly.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Green Commitments: Safeguarding the Planet's Ecological Future
Opportunity Category Opportunity Description Impact Period Response Measures
Impact, Risk, and Opportunity Management
Global market demand for low-carbon
food ingredients is steadily growing,
Based on a systematic identification of major risks and opportunities in the climate domain, the Company
and consumer awareness of health and
environmental protection has significantly
Deepen R&D in enzymatic hydrolysis has established a comprehensive response mechanism at both strategic and operational levels. By creating
technology, explore applications of
Promote Market Growth increased, giving low-carbon products like a scientific and systematic risk classification management system, the Company translates various risks
Short and Medium synthetic biology, advance the production
for Green and Healthy natural flavor bases clear market prospects.
Term of environmentally friendly flavor base
and opportunities into specific action plans and integrates them into the regular responsibilities of each
Products The Company has already invested in the department. At the same time, the Company continuously adjusts its response strategies based on changes
products, and accelerate the industrial
R&D of enzymatic hydrolysis and synthetic
layout of green products in the internal and external environment, ensuring that while addressing risk challenges, it effectively seizes
biology technologies, providing technical
support for the green upgrading of its green transition opportunities and continuously enhances its operational resilience.
products
Stricter international environmental
policies are driving innovation in Transform high-energy-consumption
production processes. Green processes production links, improve energy efficiency
Develop Clean Production
and Green Processes
can reduce export compliance risks and
enhance appeal to international customers.
Short and Medium
Term
management, promote the application of
green and low-carbon technologies, and
Indicators and Targets
Subsidiaries like Xiamen Amber have establish a benchmark for clean production
already verified their commercial value and in the flavor industry
attractiveness to international clients
Climate-Related Indicators Unit 2025
Leading food and beverage enterprises
prioritize suppliers with excellent ESG Strengthen ESG information disclosure,
Enhance Brand Value and performance. Green-certified products help Medium and Long enhance brand influence through publicity Total greenhouse gas emissions Tonnes of CO2 equivalent 9,571.99
Customer Loyalty gain a competitive market advantage, and Term and promotion, and deepen cooperative
investors' attention to companies leading in relationships with key customers
climate management continues to increase
Green-certified products have significant Tonnes of CO2 equivalent/
market access advantages in the EU and Carbon emission intensity 0.07
RMB 10,000 of output value
Southeast Asian markets. The global Leverage the Indonesian production base
demand for low-carbon products is to advance international certifications,
Expand International growing, and products that meet carbon Medium and Long develop an export product portfolio that
Markets footprint requirements are more likely to Term complies with mainstream environmental
enter international markets and attract standards, and enhance competitiveness in
high-end customers. The layout of overseas overseas markets Scope 1 (direct emissions) Tonnes of CO2 equivalent 1,531.32
production bases provides support for
market expansion
Climate anomalies lead to annual price
fluctuations for natural raw materials Collaborate with suppliers to promote
such as sweet orange oil. Diversified sustainable procurement, establish a
Optimize Supply Chain
procurement and cooperation with green
Short and
green supply chain management system,
Scope 2 (indirect emissions from energy) Tonnes of CO2 equivalent 8,040.67
Stability Medium Term
suppliers can enhance supply chain and ensure the stability and low-carbon
resilience and reduce the impact of climate- development of the supply chain
related risks
Climate risk management capability has Improve the climate risk management
become one of the core competencies in system, establish mechanisms for climate
Enhance Corporate
the industry. Enterprises with excellent risk identification, assessment, and
Resilience and Competitive Long-term
ESG performance demonstrate stronger response, and integrate climate factors
Advantage
resilience in financing channels and market into corporate strategy and operational
competition decisions
Time Horizon Definition: Short-term (0-3 years), Medium-term (3-10 years), Long-term (over 10 years)
?Climate Opportunity Identification and Response
Responsibility for Good
Achieving Shared Social Value
Huabao Limited has always upheld the core
philosophy of "Responsibility for Good, Symbiotic
and Win-Win", practicing social responsibility
through concrete actions. Through various
initiatives such as public welfare donations,
targeted assistance, and rural revitalization,
the Company conveys corporate warmth and
demonstrates the responsibility and commitment
of a new-era enterprise by helping vulnerable
groups, supporting regional development, and
safeguarding people's well-being.
Rural Revitalization /111
Social Welfare /112
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Responsibility for Good: Achieving Shared Social Value
Rural Revitalization Social Welfare
Amidst the national push for the rural revitalization strategy, Huabao Limited actively fulfills its social Huabao Limited has always adhered to a social value orientation. While conducting its business operations steadily,
responsibilities and engages in rural construction. Leveraging its industrial advantages, the Company explores it actively fulfills its corporate social responsibilities and continuously participates in public welfare practices
sustainable development paths in multiple dimensions, including vitalizing villages through industry, stabilizing across various fields, including educational support, ecological protection, emergency rescue, and community
them through employment, and assisting them through education. Since relocating to Lhasa, Tibet in 2016, the development. Focusing on education as a key public welfare direction, the Company has gradually developed and
Company has been deeply involved in frontier construction, building a modern headquarters base in Lhasa and promoted the long-term "Flower Growth Program", a public welfare student aid project, making it an important
contributing over RMB 700 million in local taxes. It has also carried out various public welfare activities tailored to part of its systematic and branded public welfare practice. The Company continues to cultivate this program in
local conditions, such as student and poverty aid, livestock farming assistance, disaster relief donations, public regions like Tibet, forming a matrix of public welfare projects with continuity and demonstration effects. On this
welfare construction, and ecological protection, achieving remarkable results and carving out a path for rural basis, the Company coordinates its efforts through diversified public welfare actions to promote resource sharing
revitalization with plateau characteristics. and sustainable social development, striving to contribute to the coordinated progress of society, the environment,
and the industry.
Case: The "Huabao Village Companion Program" for Rural Revitalization Officially Case: The "Flower Growth Program" Helps Dreams Take Flight
Launched in Ji'an County
In December 2025, the Company officially launched the "Huabao Village Companion Program", a public Originating from Jinzhai, the "Blooming Futures Program" carries Huabao Limited's deep commitment to
welfare project for rural revitalization, in Chipo Village, Antang Township, Ji'an County, Jiangxi Province. The educational public welfare. Huabao Limited firmly believes that dedicating itself to education is the best way
project is led by the local government, with the Company acting as a collaborative partner and villagers as for the Company to give back to society.
the main participants. The Village Companion Program focuses on rural talent incentives, community co-
construction, and ecological industry development. By establishing a special public welfare fund, it provides In its public welfare practice, the Company not only focuses on building a material foundation—increasing
incentives for agricultural stars, subsidies for green micro-actions, and awards for ecological industries, the number of sponsored teaching sites to three by 2025 and ensuring the precision and effectiveness
supporting the cultivation of endogenous motivation in rural areas in a "lightweight and platform-based" of donations through a dedicated annual research mechanism—but is also committed to spiritual
manner. This initiative effectively directs social resources to the grassroots level, not only assisting in local empowerment through innovative forms. In August 2025, the Company organized the "Riding the Mountain
community building and stable industrial development but also exploring a new path for enterprises to fulfill Wind, Chasing the Sea Dream" themed study tour in Shanghai. Thirteen students from Jinzhai, Anhui were
their social responsibilities in a sustainable model. invited to participate in a 5-day immersive study journey. The students not only visited the Company's
Shanghai campus but also explored renowned institutions such as the Volvo Car R&D Center, the East China
Sea Research Station of the Chinese Academy of Sciences' Institute of Acoustics, and the Shanghai Natural
History Museum. They also visited Fudan University and Shanghai Jiao Tong University to experience the
academic atmosphere. This immersive and inspiring experience opened a door to a wider world for the
children and is a direct reflection of the Company's efforts to deepen its commitment to educational public
welfare and support educational development through innovative means.
?The "Huabao Village Companion Program" for rural revitalization
?The "Riding the Mountain Wind, Chasing the Sea ?"Flower Growth Program" in Nyemo County, Lhasa,
Dream" Themed Study Tour Tibet
Key performance
In September 2025, the donation ceremony for the "Blooming Futures Program" public welfare student
aid project was held at Nyemo County Middle School in Lhasa, Tibet. A Company representative presented
In 2025, the Company invested Since establishing its presence in Tibet,
grants and scholarships to the sponsored and award-winning students. This donation not only reflects the
RMB 1.65 million in rural the Company has paid a cumulative total of
Company's commitment to corporate social responsibility and public welfare but also serves as a vivid
revitalization RMB 715 million in taxes, with RMB 3 million paid in 2025. testament to the east-west collaboration and joint efforts in promoting educational development.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Responsibility for Good: Achieving Shared Social Value
Case: Targeted Donations to Support Plateau Ecological Protection and Anti-
The "Flower Growth Program" Helps Dreams Take Flight Poaching Actions
In September 2025, the "Beautiful Qinghai, Pure Beauty" charity donation ceremony was held at the
Sanjiangyuan Ethnic Middle School in Xining, Qinghai. The event was hosted by the China Association In January 2025, the Company made a special donation
of Fragrance Flavour and Cosmetic Industries and co-organized by the China Women's Development to the Nailang Ecological and Cultural Protection Center
Foundation. Leaders from the Qinghai Provincial Medical Products Administration and the provincial in Lhasa, Tibet Autonomous Region, to support plateau
government attended the ceremony. The Company, along with over twenty other corporate representatives ecological restoration, biodiversity conservation, and
including BASF China and Symrise, participated in the donation. The school is a fully residential ethnic community environmental education in the Nailang
middle school dedicated to serving the ecological protection of the Sanjiangyuan region, with over 90% of Valley area. This donation effectively ensured the smooth
its students being children of Tibetan farmers and herders. This donation provides resources for students on execution of the joint anti-poaching patrol in the Nailang
the plateau, helps the children of ecological migrants access quality education, and promotes educational Valley Nature Reserve during the winter of 2025. The
equity and the inheritance of ethnic culture. patrol results showed a significant reduction in the
number of poaching snares and traces of human activity
compared to the same period last year, safeguarding the
habitats of important species such as the snow leopard. ?A Conceptual Diagram Illustrating Support for
Ecological Restoration in the Nailang Valley Area
Case: Donation to Support Earthquake Relief Efforts in Dingri, Shigatse
In January 2025, a 6.8-magnitude earthquake struck Dingri County, Shigatse City, Tibet. As a socially
responsible enterprise, the Company responded immediately by donating RMB 100,000 through the
Shigatse Charity Federation for emergency rescue, resettlement of affected residents, and post-disaster
reconstruction. Upholding its philosophy of giving back to society, the Company has previously contributed
funds and materials to support targeted poverty alleviation and rural revitalization in Tibet, continuously
demonstrating corporate warmth and responsibility through practical actions.
?"Beautiful Qinghai, Pure Beauty" Charity Donation Ceremony in Sanjiangyuan
The "Blooming Futures Program" not only reaches distant areas but also cultivates roots in the local
community. In June 2025, the Company's technical experts visited Nanyuan Middle School in Jiading District.
In October of the same year, they brought lively and engaging science popularization courses to over 250
students at the Fifth Jiading Experimental School affiliated with Shanghai Normal University. As a member of Key Performance
the Jiading Industrial Zone Education Council, the Company actively promotes "Home-School-Community-
Enterprise" collaboration. Through continuous school-enterprise cooperation and science popularization
activities, it aims to plant the seeds of science in the hearts of young people. In 2025, Huabao Limited invested a total of RMB 2.097 million in public welfare and charitable causes.
While continuously developing its business, the Company has always regarded charitable and public welfare
projects as a key corporate responsibility and social mission. The Company encourages employees to participate in
social welfare activities and will devote broader efforts to addressing social needs and challenges.
?"Flower Growth Program" enters the campus
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Conclusion
Key Performance
Indicator Unit 2024 2025 Indicator Unit 2024 2025
Business Indicators Domestic and commercial solid waste Tonnes 1,028 48.30
Ten thousand Non-hazardous
Operating revenue 135,679.36 133,783.42 Industrial solid waste Tonnes 115 2,094.29
yuan waste
Wastewater Cubic meter 398,345 105,523.00
Ten thousand
Total assets 743,711.33 734,512.37
yuan
Hazardous solid waste Tonnes 10 92.56
Hazardous
Governance Indicators waste
Hazardous wastewater Cubic meter / 259,989.37
Proportion of directors covered by anti-
commercial bribery and anti-corruption % 100 100 Electricity kWh 10,742,966 13,296,573.77
training
Diesel Liters 24,125.65 48,840.29
Proportion of employees covered by anti-
commercial bribery and anti-corruption % 100 100 Natural gas Cubic meter 662,218 586,316.00
training
Gasoline Liters 35,874.22 53,240.94
Signing rate of employee anti-commercial
Energy use
Business ethics bribery and anti-corruption commitment % 100 100
letters Coal gas Cubic meter / 390.00
Signing rate of supplier integrity agreements % 100 100 Purchased steam Cubic meter / 843,133.00
Number of confirmed corruption incidents Cases 0 0 Liquefied petroleum gas kg / 5,231.00
Incidents of money laundering and insider Renewable energy kWh / 23,313.50
Cases 0 0
trading violations
Water resource
Incidents of conflict of interest violations Cases 0 0 Water Cubic meter 475,742 473,448.96
use
Environmental Indicators
Paper recycling Recycled paper kg 432.50 4.50
Tonnes of CO2
Scope 1 greenhouse gas emissions 1,575.00 1,531.32 Water resource
equivalent Total wastewater recycled/reused Cubic meter 130,600 141,266.30
recycling
Tonnes of CO2
Scope 2 greenhouse gas emissions 5,765.00 8,040.67 Total plastic recycled Tonnes 51.71 56.68
equivalent Solid waste
Greenhouse recycling
gas emissions Tonnes of CO2 Total metal recycled Tonnes 18.48 32.24
Total greenhouse gas emissions 7,340.00 9,571.99
equivalent
Social Indicators
Tonnes of CO2
Greenhouse gas emission intensity equivalent/RMB 0.05 0.07 Ten thousand
R&D investment amount 13,652.40 14,752.55
Sulfur oxides kg 4.10 14.14 Proportion of R&D investment to operating
% 10.06 11.03
R&D revenue
Nitrogen oxides kg 450.44 1,613.37
Exhaust gas
emissions R&D technical personnel Persons 301 302
Particulate matter kg 1,760.37 1,244.03
Others kg / 81.28 Proportion of R&D personnel % 24.57 23.30
Note: Due to the standardization of reporting scopes for subsidiaries in 2025, some indicators may show significant differences
compared with previous years.
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Conclusion
Index of Indicators
Indicator Unit 2024 2025 Primary topics Secondary topics Relevant sections
Total number of employees Persons 1,225 1,296 ① Management of risks and opportunities related to climate
Addressing climate change
change
Number of female employees Persons 456 491
② Assessing the adaptability of the Company's strategy and
Addressing climate change
Employee Number of male employees Persons 769 805 business model to climate change
employment
Employee turnover/attrition rate % / 18 ③ Transformation plans, measures, and progress in addressing
Addressing climate change
climate-related risks and opportunities
Proportion of female employees in
% 43.64 43.64 Climate change ④ Providing greenhouse gas emissions across different scopes
management Addressing climate change
tackling by category
Employee social security coverage rate % 100 100
⑤ Providing greenhouse gas emissions by category Addressing climate change
Employee Confirmed discrimination incidents Cases 0 0 ⑥ Methodology for greenhouse gas emissions accounting Addressing climate change
rights and
benefits Confirmed forced labor incidents Cases 0 0 ⑦ Greenhouse gas reduction practices Addressing climate change
Confirmed child labor incidents Cases 0 0 ⑧ New technologies, products, and services conducive to
Addressing climate change
reducing carbon emissions and achieving carbon neutrality
Total training hours Hours 15,000 20,192
① Pollutant discharge information Key Performance
Average training hours per person Hours 15.5 15.58
② Pollutant discharge treatment Environmental management
Employee Total number of training sessions for the year Times 65 57 Pollutant discharge ③ Emission reduction targets Undisclosed
training
Ten thousand ④ Impact on communities Undisclosed
Annual training expenditure 50 52
yuan
⑤ Administrative penalties Environmental management
Employee training coverage rate % 92 100
① Waste volume Key Performance
Days lost due to work-related injuries Persons 32 238
Waste disposal ② Treatment status Energy and resource utilization
Number of work-related fatalities Persons 0 0
③ Emission reduction targets Energy and resource utilization
Ten thousand
Total investment in work safety / 60.95 ① Exit activities Not applicable
yuan
Occupational ② Protective measures within the region Not applicable
health and Occupational disease incidence rate % 0 0 Ecosystem and
safety biodiversity ③ Protection and restoration measures Not applicable
Occupational health examination coverage protection
% 100 100
rate ④ Biological genetic resources Not applicable
Duration of occupational health training Hours / 854 ⑤ Product life cycle impact Not applicable
Number of production safety emergency ① Risk management Environmental management
Times / 11 Environmental
drills
compliance ② Emergency incidents Environmental management
Investment in public welfare and charitable Ten thousand management
Social welfare 24.11 209.70 ③ Administrative penalties Environmental management
causes yuan
Total number of information security Energy and resource utilization, Key
Pcs 0 0 ① Usage status
vulnerabilities Performance
Information
security Energy usage
Total number of customers, and employees ② Clean energy Energy and resource utilization
Persons 0 0
affected by non-compliance
③ Conservation targets Undisclosed
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Conclusion
Primary topics Secondary topics Relevant sections Primary topics Secondary topics Relevant sections
① Usage status Energy and resource utilization ① Employee recruitment Employee rights and development
Usage of water
resources
② Conservation targets Energy and resource utilization Employees ② Occupational health and safety Employee health and safety
① Target plans Undisclosed ③ Career development and training Employee rights and development
② Specific measures Waste management and circular economy Due diligence Due diligence implementation Materiality assessment
Circular economy
Waste management and circular economy, ① Communication mechanisms Stakeholder engagement
③ Progress and outcomes Communication with
Key Performance
stakeholders
② Feedback channels Corporate governance
① Corporate strategy Rural revitalization
① Management system Business ethics
Rural revitalization ② Specific measures Rural revitalization
Anti-Commercial ② Risk assessment Business ethics, Supply chain management
③ Achievements Rural revitalization Bribery and Anti-
Corruption ③ Training effectiveness Business ethics
Contributions to the
Contribution status Social welfare ④ Incidents occurred Business ethics
society
① Strategic objectives Innovative R&D ① Management system Business ethics
Anti-unfair competition
② Specific details Innovative R&D ② Administrative penalties Business ethics
Innovation-driven
③ R&D achievements Innovative R&D
④ Innovation impact Innovative R&D
① Fields of engagement Not applicable
② Internal management Not applicable
Ethics of science and
technology
③ Violations Not applicable
④ Training and awareness Not applicable
① Risk management Supply chain management
Supply chain security ② Safeguard measures Supply chain management
③ Improvement measures Supply chain management
Equal treatment of ① Outstanding payments Supply chain management
small and medium-
sized enterprises ② Specific details Supply chain management
① Management system Quality assurance
② Quality certifications Quality assurance
Safety and quality of
③ Major incidents Quality assurance
products and services
④ After-sales service Customer co-creation
⑤ Accessibility Customer co-creation
Digital transformation and intelligent
① Management system
operations
Digital transformation and intelligent
② Security incidents
Data security and operations
customer privacy
protection Digital transformation and intelligent
③ Customer privacy protection
operations
Digital transformation and intelligent
④ Data breach incidents
operations
Huabao Limited 2025 Environmental, Social and Governance (ESG) Report Conclusion
Reader Feedback Form
Dear Readers,
Thank you for taking time off to read the 2025 Environmental, Social and Governance (ESG) Report of Huabao
Flavours & Fragrances Co., Ltd. In order to better prepare the Report and enhance the responsibility-fulfilling ability
and level of the Company, we sincerely value your valuable advice and suggestions on the Report so that we can
make further improvements.
□ Government □ Customer □ Employee □ Partner □ Environmental related organization
□ Community and the public
□ Very good □ Good □ Average □ Poor □ Bad
□ Very reasonable □ Relatively reasonable □ Average □ Poor □ Bad
□ Very reasonable □ Relatively reasonable □ Average □ Poor □ Bad
□ Very good □ Good □ Average □ Poor □ Bad
environment?
□ Yes □ Average □ No idea
□ High □ Relatively high □ Average □ Relatively low □ Low
□ Good □ Average □ Poor □ No idea
practices of the Company?
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