Huabao International Holdings Limited (Huabao International) announced that its Shenzhen-listed subsidiary, Huabao Flavours & Fragrances Co., Ltd. (Huabao Flavours, stock code 300741), has pushed back the completion schedules for two major projects financed by its 2018 IPO proceeds.
Huabao Flavours raised gross proceeds of RMB2.38 billion from its ChiNext listing, translating to RMB2.31 billion net. As of 31 December 2025 the company had deployed RMB957.26 million, or 41.41 % of the net proceeds, leaving RMB1.36 billion unutilised. Including accumulated interest and cash-management income, funds held in the designated special account total RMB1.35 billion.
Key project timetables have been adjusted as follows:
1. Huabao Technology Innovation Center (Huabao TechInno Project) • Allocated proceeds: RMB449.97 million (USD equivalent not disclosed) • Utilised to-date: RMB12.08 million (2.69 %) • New target for full operational status: postponed from 30 June 2029 to 31 December 2030 • Reason: delays in converting land use from industrial to R&D purposes and slower-than-expected finalisation of land-use contracts.
2. Huabao Digital Transformation Project (Huabao Digital Project) • Allocated proceeds: RMB60.00 million • Utilised to-date: RMB32.88 million (54.80 %) • New target for completion: postponed from 31 December 2026 to 31 December 2028 • Reason: need to realign project architecture with recent advances in generative AI and large language models to ensure resource efficiency and strategic fit.
Huabao International’s board stated that the revised schedules will not materially affect the group’s current operations and remain in shareholders’ best interests. No changes have been made to the approved uses of the IPO funds, and any future redeployment of the remaining proceeds will require board approval and, where applicable, shareholder endorsement in line with Shenzhen Stock Exchange regulations.
The disclosure was filed on 20 March 2026 via the ChiNext Market information platform. Shareholders are advised to exercise caution when trading the company’s shares.