Huabao International : INSIDE INFORMATION - PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS FOR THE THREE MONTHS ENDED 31 MARCH 2021 OF HUABAO FLAVOURS & FRAGRANCES CO., LTD.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

HUABAO INTERNATIONAL HOLDINGS LIMITED

華 寶 國 際 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 00336)

INSIDE INFORMATION

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS

FOR THE THREE MONTHS ENDED 31 MARCH 2021 OF HUABAO FLAVOURS & FRAGRANCES CO., LTD.

This announcement is made by Huabao International Holdings Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Huabao Flavours & Fragrances Co., Ltd. ("Huabao Flavours") is a subsidiary of the Company and its shares are listed on the ChiNext Market of Shenzhen Stock Exchange (Stock Code: 300741). In compliance with the relevant applicable regulations of Shenzhen Stock Exchange, Huabao Flavours published its First Quarterly Report for the three months ended 31 March 2021 on 26 April 2021 on the information disclosure webpage of Shenzhen Stock Exchange's website at http://www.szse.cn/disclosure/listed/notice/index.html.

The board of directors of the Company would like to draw the attention of its shareholders and public investors to the appendices of this announcement (the "Appendices") which set out the principal accounting data and financial indicators of Huabao Flavours prepared in accordance with the PRC Accounting Standard for Business Enterprises for the three months ended 31 March 2021.

Please note that the information in the Appendices is an extract of the financial statements prepared by Huabao Flavours in Chinese language. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

By Order of the Board

Huabao International Holdings Limited

POON Chiu Kwok

Executive Director

Hong Kong, 26 April 2021

As at the date of this announcement, the Board comprises four executive directors, namely Ms. CHU Lam Yiu (Chairlady and CEO), Messrs. XIA Liqun, POON Chiu Kwok and LAM Ka Yu and four independent non-executive directors, namely Mr. LEE Luk Shiu, Ms. MA Yunyan, Mr. WU Chi Keung and Mr. Jonathan Jun YAN.

* For identification purposes only

APPENDIX I

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS OF HUABAO FLAVOURS &

FRAGRANCES CO., LTD.

Principal accounting data and financial indicators

				Unit: RMB (Yuan)
				Increase/decrease of the
				current reporting period
	Current reporting	Corresponding period last year	compared to the
			corresponding period
	period
			last year
		Before adjustment	After adjustment	After adjustment
Operating revenue	467,110,062	445,224,013	445,224,013	4.92%
Net profit attributable to	273,838,242	269,023,191	268,711,298	1.91%
Huabao Flavours' shareholders
Net profit attributable to Huabao Flavours'	232,776,482	252,808,351	252,496,458	-7.81%
shareholders less non-recurring items
Net cash flow arising from operating activities	192,359,183	158,412,508	158,081,136	21.68%
Basic earnings per share (RMB/share)	0.44	0.44	0.44	0.00%
Diluted earnings per share (RMB/share)	0.44	0.44	0.44	0.00%
Weighted average return on net assets	3.48%	3.40%	3.40%	0.08%
				Increase/decrease of the
				end of the current
	End of the current	End of last year	reporting period
			compared to the end of
	reporting period
			last year
		Before adjustment	After adjustment	After adjustment
Total assets	8,511,406,662	8,349,999,362	8,349,999,362	1.93%
Net assets attributable to	7,997,215,902	7,722,651,979	7,722,651,979	3.56%
Huabao Flavours' shareholders

Non-recurring gain/ loss items and amounts

		Unit: RMB (Yuan)
	Amount from the beginning
Items	of the year to end of the	Explanations
	current reporting period
Gain/loss from disposal of non-current assets, including the portion offset	-14,485	--
from the provision for impairment of assets
Government subsidies recognized in profit and loss of current reporting		Mainly due to the receipt of government
period (excluding those closely related to the Company's business and	34,863,236
granted under the State's policies according to certain quota of amount or	subsidies
volume)
Investment income arising from gain or loss resulted from changes in fair
value (except those arising from the effective hedging business related to
the Company's normal operation) of financial assets held for trading,
derivative financial assets, financial liabilities held for trading, derivative	12,961,490	--
financial liabilities; disposal of financial assets held for trading, derivative
financial assets, financial liabilities held for trading, derivative financial
liabilities and other debt investments
Non-operating income and expenses other than the above items	-567,005	--
Less: Income tax impact	5,610,474	--
Minority interest impact (after tax)	571,002	--
Total	41,061,760	--

APPENDIX II

CHANGES IN PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS DURING THE

REPORTING PERIOD OF HUABAO FLAVOURS & FRAGRANCES CO., LTD.

1. Analysis of changes in major items in Balance Sheet

				Unit: RMB (Ten Thousands Yuan)
	End of	Beginning of
Items	current	current	Increase/	Explanations for significant changes
reporting	reporting	Decrease (%)
	period	period
Financial assets held for trading	84,143.41	56,955.63	47.74%	Mainly due to the increase in structured bank deposits
during the current reporting period
Other current assets	5,087.45	7,411.02	-31.35%	Mainly due to the decrease in the amount of input tax
pending for deduction during the current reporting period
Long-term equity investment	8,220.77	6,129.64	34.12%	Mainly due to the increase in equity investment and
increase in investment income during the current reporting
				period
Other non-current assets	92.22	252.29	-63.45%	Mainly due to some non-current assets at the beginning of
the period, which were transferred according to the
				completion progress
Employee compensation payable	3,646.86	5,538.80	-34.16%	Mainly due to the payment of annual performance bonus,
which were accrued at the end of the previous year, during the
				current reporting period
Taxes payable	14,896.76	21,341.97	-30.20%	Mainly due to the decrease in the value-added tax payable at
the beginning of the period and the decrease in current income
				tax payable
Other current liabilities	1,845.58	3,686.87	-49.94%	Mainly due to the decrease in pending output
value-added tax

2. Analysis of changes in major items in Income Statement

				Unit: RMB (Ten Thousands Yuan)
	Current	Corresponding	Increase/
Items	reporting	Explanations for significant changes
period last year	Decrease (%)
	period
				Mainly due to the stabilization of the novel coronavirus
Selling expenses	2,973.38	2,238.12	32.85%	pandemic, no social insurance reduction or exemption was
allowed during the current reporting period, and the increase in
				business-related transportation and travel expenses
Credit impairment loss	105.72	-57.47	283.96%	Mainly due to the reversal of the corresponding
impairment of accounts receivable
Gain/loss arising from changes in fair value	1,363.71	-1,192.68	214.34%	Mainly due to the increase in the fair value of
investment in financial assets held for trading
Investment income	185.59	-19.45	1054.19%	Mainly due to the maturity of bank structured wealth
management products during the current reporting period
Non-operating expenses	77.27	21.10	266.21%	Mainly due to the non-current assets written off during
the current reporting period

3. Analysis of changes in major items in Cash Flow Statement

				Unit: RMB (Ten Thousands Yuan)
	Current	Corresponding	Increase/
Items	reporting	Explanations for significant changes
period last year	Decrease (%)
	period
Cash received from other activities relating				Mainly due to government subsidies and the increase in
6,646.72	4,727.65	40.59%	interest income from time deposits (within three
to operating activities
			months)
Various taxes paid	16,331.36	10,441.95	56.40%	Mainly due to the increase in the amount of value-added
tax and income tax paid
Cash paid for other activities relating to	5,797.08	3,983.58	45.52%	Mainly due to the increase in the payment of business
operating activities	expenses such as travel expenses
				Mainly due to the decrease in interest income from the
Cash received from returns on investments	831.19	1,416.55	-41.32%	maturity of time deposits during the current reporting
				period
Cash paid for distribution of dividends,				Mainly due to no distribution of cash dividends by
17.85	301.95	-94.09%	subsidiaries to its minority shareholders during the
profits or interest payments
			current reporting period