Hubao Held a Training on “Rules Interpretation of New Securities Law” and “New Refinancing Policies and Fund-raising Supervision”

In order to respond to the implementation of the new Securities Law of the People’s Republic of China (“Securities Law”) and the reform of registration-based IPO system on ChiNext and to further improve the standard operation level ofHuabao Flavours & Fragrances Co.，Ltd.  (the “Company”), the Company invited Zhong Lun Law Firm and Zheshang Securities to carry out a relevant training on June 4. The Company’s directors, supervisors, senior executives and heads of all departments and its subordinate enterprises attended the training.

Zhong Lun Law Firm aimed at the Company’s standard operation requirements to give an interpretation of the new Securities Law: the new Securities Law has improved the securities trading system, in which illegal trading such as insider trading and short-term trading is more clearly defined; further strengthened the information disclosure requirements of listed companies and improved the investor protection system; substantially increased the illegal costs of listed companies and securities service institutions, and reinforced the securities supervision. Learning the Securities Law will further enhance the standard consciousness of relevant personnel, eliminate illegal trading, and safeguard the interests of all shareholders.

Centering on the theme of “New Refinancing Policies and Fund-raising Supervision”, Zheshang Securities analyzed the core changes and specific modifications of the new refinancing policies, and compared the basic conditions, advantages and disadvantages of major financing tools under the new refinancing policies, such as allotment of shares, public offering, non-public offering, corporation bonds and convertible bonds. In addition, according to the current situation of the Company’s use of the raised funds, Zheshang Securities also analyzed the laws and regulations related to fund raising, helpful for the Company to standardize the promotion of fund-raising investment projects.

Through the professional training of the law firm and the securities firm, the Company’s relevant staff have got an in-depth understanding of the new rules and the new refinancing policies, which will play a positive role in guiding the Company’s daily compliance and capital operation planning.