Huabao International : INSIDE INFORMATION - ANNOUNCEMENT ON THE PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019 OF HUABAO FLAVOURS & FRAGRANCES CO., LTD.

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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

ANNOUNCEMENT ON THE PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2019 OF

HUABAO FLAVOURS & FRAGRANCES CO., LTD.

This announcement is made by Huabao International Holdings Limited (the "Company") pursuant to Rules 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 of Shenzhen Stock Exchange (Stock Code: 300741). In compliance with the relevant applicable regulations of Shenzhen Stock Exchange, Huabao Flavours published an announcement on its preliminary results for the year ended 31 December 2019 ("Preliminary Announcement") on 28 February 2020 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 the public investors to the appendix of this announcement (the "Appendix") which set out the Preliminary Announcement was prepared by Huabao Flavours in accordance with the PRC Accounting Standard for Business Enterprises.

Please note that the Preliminary Announcement in the Appendix was unaudited and originally prepared by Huabao Flavours in Chinese. In case of any inconsistency between the Chinese and English versions, the Chinese version shall prevail.

By Order of the Board

Huabao International Holdings Limited

POON Chiu Kwok

Executive Director

Hong Kong, 28 February 2020

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

Stock Code: 300741

Stock Name: Huabao Flavours

Ref. No.: 2020-005

Huabao Flavours & Fragrances Co., Ltd.

Announcement on the preliminary results for the year ended

31 December 2019

The Company and all members of its board warrant that the information contained in this announcement does not contain any false statements, misleading representations and material omissions. All of them shall be jointly and severally responsible for the authenticity, accuracy and completeness of the content of this announcement.

Special Note: The financial data for the year 2019 in this announcement is only preliminary accounting data. It has not been audited by any accounting firm, and there may be differences between the final data to be disclosed in the annual report. Investors should pay attention to investment risks.

1. Major financial data and financial indicators for the year 2019

Unit： RMB Yuan

	Item		Current reporting		Same period last year			Change
		period
	Total operating revenue	2,185,338,829	2,169,074,354	0.75%
	Operating profit	1,447,352,709	1,417,635,889	2.10%
	Total profit	1,445,551,000	1,417,334,059	1.99%
	Net profit attributable to	1,235,528,867	1,175,693,277	5.09%
	Huabao Flavours's shareholders
	Basic earnings per share (RMB Yuan)	2.01	1.94	3.61%
	Weighted average return on net assets	15.50%	14.57%	0.93%
			End of the current		Beginning of the			Change
			reporting period		current reporting period
	Total assets	8,378,706,552	9,627,082,061	-12.97%
	Equity attributable to	7,772,240,107	8,988,630,484		-13.53%
	Huabao Flavours' shareholders
	Share Capital	615,880,000	615,880,000		0.00%
	Net assets per share attributable to
	Huabao Flavours' shareholders	12.62	14.59	-13.50%
	(RMB Yuan)

Remarks: The figures set out in the table are expressed on consolidated basis of Huabao Flavours.

2. Operating results and financial position 1. Operating results

For the current reporting period, the Company's total realized operating revenue was RMB2,185.3388 million, representing an increase of 0.75% compared with the same period last year; realized operating profit was RMB1,447.3527 million, representing an increase of 2.10% compared with same period last year; realized total profit was RMB1,445.5510 million, representing an increase of 1.99% compared with same period last year; net profit attributable to Huabao Flavours' shareholders was RMB1,235.5289 million, representing an increase of 5.09% compared with same period last year; basic earnings per share was RMB2.01, representing an increase of 3.61% compared with same period last year, and the weighted

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average return on net assets was 15.50%, representing an increase of 0.93 percentage point compared with same period last year.

During the reporting period, the principal business of the Company continued stable development, while the operating profit and net profit attributable to Huabao Flavours' shareholders recorded increases, which was mainly due to the stable business growth of the Company and stringent cost control. The basic earnings per share and the weighted average return on net assets also reflected increases compared with the same period last year.

2. Financial position

As at the end of the reporting period, the total assets of the Company was RMB8,378.7066 million, representing a decrease of 12.97% compared with the beginning of the reporting period; equity attributable to Huabao Flavours' shareholders was RMB7,772.2401 million, representing a decrease of 13.53% compared with the beginning of the reporting period; share capital was RMB615.88 million, with no change compared with the beginning of the reporting period; net assets per share attributable to Huabao Flavours' shareholders was RMB12.62, representing a decrease of 13.50% compared with the beginning of the reporting period. The operation of the Company remained stable with good financial position. The decreases in total assets and equity attributable to Huabao Flavours' shareholders were due to profit distribution during the previous financial year.

1. Reasons for the difference with the last indicative results
   There is no difference in the operation results for the year ended 31 December 2019 disclosed in this Preliminary Results with that in the Indicative Results disclosed previously.
2. Other Relevant Explanation
3. 1. The currency of "RMB Yuan" in this announcement shall mean RMB.
   2. This announcement on the Preliminary Results was based on the preliminary estimation by the finance department of the Company and has not been audited by any accounting firm. The specific financial data of the Company for the year ended 31 December 2019 shall be disclosed in detail in the Company's annual report of 2019.

Investors should be cautious in investment and beware of the risks.

5. Documents available for inspection

The comparative Statement of the Assets and Liabilities and the Income Statement, which were signed and stamped by the Legal Representative and the responsible person of accounting in charge of the Company, and the responsible person of the Accounting Institution (person in charge).

The announcement is hereby made.

The Board of Directors of

Huabao Flavours & Fragrances Co., Ltd.

29 February 2020

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