Goodbaby International Hldg : (1) MAJOR AND CONNECTED TRANSACTION (2) ISSUE OF CONSIDERATION SHARES UNDER SPECIFIC MANDATE AND (3) APPLICATION FOR WHITEWASH WAIVER TARGET GROUP FINANCIAL INFORMATION

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.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company

Goodbaby International Holdings Limited 好 孩 子 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1086)

1. MAJOR AND CONNECTED TRANSACTION
2. ISSUE OF CONSIDERATION SHARES UNDER SPECIFIC MANDATE AND
3. APPLICATION FOR WHITEWASH WAIVER TARGET GROUP FINANCIAL INFORMATION

Reference is made to the announcement (the "Announcement") of Goodbaby International Holdings Limited (the "Company") dated 24 July 2017 in relation to the Acquisition and the Whitewash Waiver. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

The Company is required by Listing Rule 14.67(6) to include in its circular to Shareholders an accountants' report on the Target Group for a period ending 6 months or less before the date of the circular and comprising three financial years and a stub period if applicable.

Audited financial statements on the Target Group have been prepared by the independent auditors for the three years ended 31 December 2014, 2015 and 2016 and the six months ended 30 June 2016 and 2017 ("Historical Financial Information"). The below consolidated statement of profit or loss and other comprehensive income and consolidate statements of financial position are extracted from such audited financial statement.

The Historical Financial Information is presented in RMB and all values are rounded to the nearest thousand (RMB'000) except when otherwise indicated.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Year ended 31 December Six months ended 30 June

2014 (RMB'000)	2015 (RMB'000)	2016 (RMB'000)	2016 (RMB'000)	2017 (RMB'000)
REVENUE	1,678,738	1,854,631	1,937,395	920,669	1,205,911
Cost of sales	(966,981)	(1,064,686)	(1,121,391)	(527,565)	(687,590)
Gross profit	711,757	789,945	816,004	393,104	518,321
Other income and gains Selling and distribution	10,624	9,599	7,432	2,125	3,247
expenses	(540,821)	(579,167)	(593,030)	(293,888)	(343,622)
Administrative expenses	(52,305)	(69,040)	(75,917)	(45,536)	(31,851)
Other expenses	(5,229)	(3,883)	(4,585)	(1,604)	(1,408)
Finance costs	(14,931)	(11,614)	(13,646)	(9,213)	-
PROFIT BEFORE TAX	109,095	135,840	136,258	44,988	144,687
Income tax expense	(28,410)	(34,246)	(35,459)	(12,096)	(37,177)

PROFIT FOR THE YEAR/

PERIOD 80,685 101,594 100,799 32,892 107,510

Attributable to:

Owners of the parent	80,390	100,419	100,624	32,719	106,663
Non-controlling interests	295	1,175	175	173	847

80,685	101,594	100,799	32,892	107,510
N/A	N/A	N/A	N/A	N/A

EARNINGS PER SHARE ATTRIBUTABLE TO

ORDINARY EQUITY HOLDERS OF THE PARENT

Basic and diluted

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

2014 (RMB'000)	2015 (RMB'000)		2016 (RMB'000)		2017 (RMB'000)
NON-CURRENT ASSETS
Property, plant and equipment	44,564	39,464		44,978		39,049
Goodwill	1	1		1		1
Other intangible assets	942	747		454		1,068
Deferred tax assets	6,726	4,554		14,117		16,509
Total non-current assets	52,233	44,766		59,550		56,627
CURRENT ASSETS
Inventories	261,934	265,562		285,218		305,350
Trade and notes receivables	130,481	156,856		201,846		270,721
Prepayments, deposits and other
receivables	51,389	55,942		44,151		44,097
Amounts due from related parties	314,070	400,511		17,102		209,093
Cash and cash equivalents	20,707	62,104		19,375		56,533
Total current assets	778,581	940,975		567,692		885,794
CURRENT LIABILITIES
Trade payables	86,575	92,345		109,088		108,720
Other payables and accruals	96,517	89,985		160,101		211,144
Amounts due to related parties	307,101	262,609		254,999		414,529
Interest-bearing bank borrowings	115,000	110,000		-		-
Tax payable	623	363		28,867		39,405
Total current liabilities	605,816	555,302		553,055		773,798
NET CURRENT ASSETS	172,765	385,673		14,637		111,996
TOTAL ASSETS LESS CURRENT
LIABILITIES	224,998	430,439		74,187		168,623
NON-CURRENT LIABILITIES
Interest-bearing bank borrowings	49,000	150,000		-		-
Deferred tax liabilities	1,423	1,430		1,462		-
Total non-current liabilities	50,423	151,430		1,462		-
Net assets	174,575	279,009		72,725		168,623
EQUITY
Equity attributable to owners of
the parent
Share capital	-	-	-	-
Reserves	163,979	264,398	57,938	152,990
Non-controlling interests	10,596	14,611	14,787	15,633
Total equity	174,575	279,009	72,725	168,623

As at 31 December As at 30 June

Operating Segment Information

The operating segment information set out below are based on audited data for three years ended 31 December 2014, 2015 and 2016 and the six months ended 30 June

2016 and 2017.

The following table sets forth the breakdown of revenue, gross profit and EBIT of the Target Group by product and their respective contribution to the total revenue, total gross profit and total EBIT for the year/period indicated, respectively.

RMB	%	RMB	%	RMB	%	RMB	%	RMB	%
('000)	('000)	('000)	('000)	('000)

For the year ended 31 December, For the six months ended 30 June, 2014 2015 2016 2016 2017

Durable juvenile products	970,474	57.8	1,086,607	58.6	1,057,786	54.6	508,729	55.3	630,802	52.3
Maternity and baby-care products	412,136	24.6	486,613	26.2	578,670	29.9	272,423	29.6	376,446	31.2
Apparel products	296,128	17.6	281,411	15.2	300,939	15.5	139,516	15.1	198,663	16.5
Total Revenue	1,678,738	100.0	1,854,631	100.0	1,937,395	100.0	920,669	100.0	1,205,911	100.0

Durable juvenile

products Maternity and	314,109	44.1	351,628	44.5	343,708	42.1	168,445	42.9	208,458	40.2
baby-care products	208,034	29.2	250,482	31.7	292,001	35.8	138,569	35.2	191,473	36.9
Apparel products	189,614	26.7	187,835	23.8	180,295	22.1	86,090	21.9	118,390	22.9
Total Gross Profit	711,757	100.0	789,945	100.0	816,004	100.0	393,104	100.0	518,321	100.0

Durable juvenile

products Maternity and	26,885	16.1	24,486	13.4	25,957	13.8	10,167	12.3	26,237	16.4
baby-care products	103,183	61.7	126,840	69.6	150,052	79.9	67,263	81.4	106,170	66.4
Apparel products	37,117	22.2	30,941	17.0	11,912	6.3	5,241	6.3	27,556	17.2
Aggregate segment EBIT(1)	167,185	100.0	182,267	100.0	187,921	100.0	82,671	100.0	159,963	100.0
Overhead(2)	(43,159)	N/A	(34,813)	N/A	(38,017)	N/A	(28,471)	N/A	(15,276)	N/A
Total EBIT	124,026	N/A	147,454	N/A	149,904	N/A	54,200	N/A	144,687	N/A

Note:

1. Earnings before income tax, finance costs, other income and gains, other expenses and corporate and other unallocated expenses.

2. Include other income and gains, other expenses and corporate and other unallocated expenses.