Huabao Co., Ltd. Adjusts Timeline for Two Major Investment Projects; Sci-Tech Innovation Center Postponed to End of 2030; Digital Transformation Delayed to End of 2028

Beijing, March 20, 2026 — Huabao Fragrance Co., Ltd. (Stock code: 300741, referred to as “Huabao”) announced today that the company’s 24th meeting of the third board of directors approved the “Proposal to Adjust the Investment Schedule of the Fundraising Projects.” The company has decided to revise the investment schedule for the “Huabao Technology Innovation Center and Supporting Facilities Project” (the “Tech Innovation Center Project”) and the “Huabao Digital Transformation Project” (the “Digital Transformation Project”). This adjustment does not involve changes to the use of raised funds and does not require shareholder approval.

Basic Information on Fundraising

Huabao completed its initial public offering in February 2018, issuing 61.59 million shares at 38.60 yuan per share, raising a total of 2.377 billion yuan. After deducting issuance costs of 65.5319 million yuan, the net funds raised amounted to 2.312 billion yuan. These funds have been deposited into dedicated accounts for the raised capital and a tripartite supervision agreement has been signed.

Overview of the Projects Before Adjustment

As of December 31, 2025, the status of unfinished fundraising projects is as follows:

Adjusted Investment Schedule

According to the announcement, the completion dates for both projects have been postponed. The specific adjustments are as follows:

Huabao Technology Innovation Center and Supporting Facilities

• Original Completion Date: June 30, 2029
• Revised Completion Date: December 31, 2030
• Adjusted Annual Investment Plan (in 10,000 yuan):
  2023: 4.39 | 2024: 7.26 | 2025: 19.27 | 2026: 130.00 | 2027: 1,000.00 | 2028: 1,600.00 | 2029: 1,000.00 | 2030: 648.98

Huabao Digital Transformation Project

• Original Completion Date: December 31, 2026
• Revised Completion Date: December 31, 2028
• Adjusted Annual Investment Plan (in 10,000 yuan):
  2021: 3.53 | 2022: 20.00 | 2023: 3.91 | 2024: 10.00 | 2025: 4.07 | 2026: 4.80 | 2027: 5.00 | 2028: 8.69

Reasons for Adjustment

2. Delay of the Tech Innovation Center Project:
   The project requires changing the land use from industrial to R&D. Although the land change and storage work for the company’s own land have been completed, the process of drafting and signing land contracts is behind schedule. The company needs to wait until the land contract is officially signed before proceeding with subsequent construction, thus the completion date is extended to December 31, 2030.

3. Delay of the Digital Transformation Project:
   Affected by rapid iterations of generative AI, large models, and other AI technologies, the company’s original technical plan needs to be optimized for better adaptation. To integrate cutting-edge AI capabilities, improve application functions, and optimize management backend architecture, the company has restructured the project implementation schedule to avoid premature or ineffective investments, ensuring the project aligns deeply with business needs. Therefore, the completion date is postponed to December 31, 2028.

Impact on the Company and Opinions of All Parties

Huabao stated that this adjustment is a prudent decision based on government approval progress, technological iteration, and resource allocation optimization. It does not change the project implementation entities or the use of funds, and there is no harm to shareholders’ interests. It will not adversely affect the company’s normal operations.

Board of Directors’ Opinion: The adjustment complies with laws and regulations, is made prudently, and does not affect the company’s operations.
Sponsor Institution’s Opinion: After verification, Zheshang Securities believes that this adjustment has followed necessary procedures, complies with the “Regulations on the Supervision of Fundraising by Listed Companies,” and has no objections.

Reference Documents

2. “Resolution of the 24th Meeting of the Third Board of Directors of Huabao Fragrance Co., Ltd.”
3. “Special Verification Opinion on the Adjustment of Fundraising Project Investment Schedule of Huabao Fragrance Co., Ltd. by Zheshang Securities Co., Ltd.”

(End)

Click to view the original announcement>>

Disclaimer: The market involves risks; investments should be cautious. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s views. All information in this article is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for accuracy. If you have questions, contact biz@staff.sina.com.cn.