On the morning of January 24, 2022 $Huabao Flavours & Fragrances (300741.SZ)$(300741.SZ) issued an announcement stating that the company recently received a notice of filing a case from the Leiyang Municipal Supervisory Commission and decided to open an investigation into the violation of the law by Zhu Linyao, the actual controller of the company. Huabao Co., Ltd. said that up to now, Zhu Linyao has not held any position in the company or participated in the company's management. The above matters will not have a significant impact on the company's daily production and operation activities. Currently, the company's production and operation are normal.
On the same day, $HUABAO INTL (00336.HK)$(0336.HK) also posted the above news. Zhu Linyao is the chairman, CEO, executive director and controlling shareholder of Huabao International. He holds about 71% of Huabao International's shares.
Affected by the above news, Huabao's stock price fell to a standstill in early trading, and Huabao International's intraday decline was as high as 62.22%.
The actual controller was once surrounded by light
According to the “Prospectus of Intent” issued by Huabao Co., Ltd. in 2018, Huafeng China, the controlling shareholder of the company, is a wholly-owned subsidiary of Huafeng International. Huafeng International's shareholders Spanby Industrial and Ingame Technology are wholly-owned subsidiaries of Chemactive Investments, and Chemactive Investme NTS is a wholly-owned subsidiary of Huabao International. As of the date the prospectus was signed, Zhu Linyao of Hong Kong, China held a total of 73.6% of Huabao International's shares through Resourceful Link, Power Nation, Jumbo Elite, Real Elite, Mogul Enterprises, and Raise Sino, which is China...