On March 27th, Huabao Flavours & Fragrances Co., Ltd (Huabao Limited), a Chinese flavor and fragrance enterprise, released its 2023 annual performance report. During the reporting period, the company achieved an operating income of 1.485 billion yuan, a decrease of 21.61% compared to the same period last year. The net profit attributable to shareholders of the listed company was 379 million yuan, a decrease of 47.72% compared to the same period last year; basic earnings per share were 0.62 yuan, a decrease of 47.46% compared to the same period last year; the weighted average return on net assets was 5.19%, a decrease of 4.51 percentage points compared to the same period last year.
In terms of specific business segments, due to changes in overall downstream market demand and the company’s product structure adjustments, sales revenue from edible flavors decreased by 33.71% in this period, while sales revenue from food ingredients increased by 21.30%, and sales revenue from daily flavors increased by 1.88%.
Huabao Limited stated that during the reporting period, the environment significantly affected the segment of incense, disinfection, and sterilization in the daily flavor business. The company quickly adjusted resource allocation, actively optimized its business structure, continued to strengthen its presence in trend segments such as personal care, oral care, and pet care, further increased innovation in related products and technologies, expanded the radiation area of domestic business, and vigorously expanded new cross-border customers to actively cater to the product demands of online electrical brands.
At the same time, the company established business contacts with multiple overseas customers to create new growth points for future business sustainability. In terms of technological innovation, the company continued to upgrade and innovate in technologies such as daily chemical powder flavors, liquid microcapsule new fragrance types, and characteristic space fragrances, further enhancing the integrated solution capabilities of daily chemical flavors.
