Huabao International Reports 2022 Annual Results
On March 31st, Huabao International (00336) released its annual report for 2022 on the Hong Kong Stock Exchange. According to the report, the company achieved sales revenue of approximately RMB 3.829 billion ($589.4 million) in 2022, a 1.4% decrease compared to 2021's revenue of RMB 3.883 billion. The gross profit margin was 49%, a 10.2 percentage point decrease compared to 2021's gross profit margin of 59.2%.
According to reports, Huabao International is a leading company in the tobacco flavor and fragrance industry. The company primarily specializes in the production of fragrances and food ingredients, tobacco raw materials, and flavorings.
According to the annual report, in 2022, the sales revenue of its flavor and food ingredient business was approximately 1.877 billion yuan, a decrease of 2.6% compared to the previous year, accounting for 49% of the group's total revenue.
Huabao International has announced that it is focusing on the development of new tobacco flavoring products, and has created a range of non-burning additives for heated tobacco products. The company has established the "APAC Huabao" R&D center in Singapore, believing that Asia will be the region with the most growth potential in the future, and intends to open up the international market by starting with Southeast Asia.
According to the annual report, in 2022, the sales revenue of tobacco raw materials amounted to 454 million yuan, a decrease of 19.7% compared to the previous year, accounting for 11.9% of the total revenue. The reason for the decline in revenue is due to the decreased demand for traditionally remade tobacco leaves, as well as a decrease in the price of tobacco capsules.
Huabao International announced that to revive its tobacco business, the company's focus will be on producing heated, non-combustible, and reconstituted tobacco leaves, as well as expanding into overseas markets. The company has completed the construction of its factory in Indonesia in 2022, which primarily produces heated, non-combustible, and reconstituted tobacco leaves and supplies them to international tobacco companies.
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Huabao International Holdings has released its annual performance report for the fiscal year ending on December 31, 2022.
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