Scientific and Technological Innovation for Digital and Intelligent Development| Huabao Signed PLM Project Cooperation Agreement with Nancal Technology

Introduction: With the release of the 14^th Five-Year Plan for Intelligent Manufacturing Development, digital transformation has become the “rigid demand” for the sustainable development of all enterprises. For the flavors and fragrances industry, scientific and technological innovation constitutes the primary productive force. In order to accelerate the digital transformation of scientific and technological innovation, Huabao Flavours & Fragrances Co., Ltd. (“Huabao” or the “Company”) and Nancal Technology Co., Ltd. (“Nancal”) entered into a project cooperation agreement, and officially launched the Product Lifecycle Management (PLM) Phase I Project, to drive the comprehensive upgrading of industrial digitalization with digital scientific and technological innovation.

On February 25, the signing ceremony for the PLM Phase I Project under the cooperation between Huabao and Nancal was held in Huabao Shanghai Industrial Park. Mr. WANG Hongqiang, Vice President of Huabao Scientific Innovation Center, and Mr. XIAO Zijiang, Chief Sales Officer of Nancal signed a formal contract on behalf of both parties. Ms. YUAN Xiaoqin, Board Director and President of Huabao and Ms. ZHAO LAN, Vice Chairman of Board of Directors and President of Nancal witnessed the signing ceremony.

“It is the top priority in Huabao’s strategic initiatives to build an international intelligent scientific innovation platform,” said Ms. YUAN in her speech, “Huabao attaches great importance to this project, and thus we specially set up a project management team of the highest standard to ensure the smooth implementation of the PLM Phase I Project.”

In this cooperation, Huabao hopes to rely on the rich implementation experience of Nancal in the PLM field to gain full insight into and reshape Huabao’s R&D management system. Meanwhile, we intend to realize the deep exploration and effective conversion of technical assets through the standardized management of R&D data, so as to empower scientific and technological innovation. We aim to break technical barriers and realize multi-disciplinary, cross-regional collaborative development through loop-locked process drive. We expect to get through the whole industry chain marketing of research, supply, production and sales through the butt-joint with ERP and other systems, so as to realize the improvement of operation efficiency again.

“Huabao is a leading enterprise in China’s flavors and fragrances industry. We are very grateful to Huabao for choosing Nancal as a partner for digital transformation of a manufacturing enterprise. We will set up a veteran implementation team to follow the strategic development direction of Huabao, combine digital strategic goal with advanced management concept, and work together with Huabao’s project management team to improve and optimize the product R&D management system, help Huabao realize its digital strategy, and set a new benchmark for digital innovation in the flavors and fragrances industry.”, said Ms. ZHAO LAN, Vice Chairman of Board of Directors and President of Nancal, at the signing ceremony.

According to the cooperation agreement, the two sides will adhere to the principle of complementary advantages and joint development, and explore in-depth communication and cooperation in software tools, management systems, simulation and test software tools and platforms, manufacturing operation management systems, intelligent manufacturing and after-sales maintenance and other PLM fields.

In the process of Chinese manufacturing enterprises’ transformation from “Made in China” to “Intelligent Manufacturing in China”, the maturity of technological innovation and product R&D capability has become a key indicator. The scientific application of the PLM system is the foundation for establishment of the enterprise collaborative innovation system. Unified product, process and knowledge data sources provide the guarantee for the enterprise to establish a unified and effective information and knowledge sharing platform within the whole industry chain and supply chain. PLM can provide enterprises with an extensible information system integration framework, and lay a good foundation for the integration and further application of other information systems, so as to promote the all-round innovation of enterprises.

Huabao and Nancal will cooperate to build an efficient and standardized R&D management system and digital management platform, further consolidate Huabao’s leading edge in technology R&D and promote the Company’s sustainable endogenous growth and epitaxial expansion, so as to lay a solid foundation for the realization of the strategic goal of “creating a global intelligent scientific innovation platform”.