Huabao International : INSIDE INFORMATION - PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS OF HUABAO FLAVOURS & FRAGRANCES CO., LTD. FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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 OF

HUABAO FLAVOURS & FRAGRANCES CO., LTD.

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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).

Reference is made to an announcement published by the Company on 14 October 2019 in respect of the indicative results of Huabao Flavours & Fragrances Co., Ltd. ("Huabao Flavours") for the nine months ended 30 September 2019.

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 its 2019 Third Quarterly Report for the nine months ended 30 September 2019 on 25 October 2019 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 appendices (the "Appendices") of this announcement 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 nine months ended 30 September 2019.

Please note that the information in the Appendices is an extract of the unaudited 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, 25 October 2019

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.

								Unit: RMB (Yuan)
	End of the current					Increase/ decrease
			End of last year	compared with the end of
	reporting period
						last year
Total assets	7,865,853,654		9,627,082,061		-18.29%
Net assets attributable to	7,372,618,179		8,988,630,484		-17.98%
Huabao Flavours's shareholders
					Increase/
			decrease	From the	Increase / decrease
			compared	beginning of the
	Current		compared with the
			with the	year to end of
	reporting period			corresponding
	corresponding	current reporting
		period of last year
		reporting period	period
			of last year
Operating revenue	521,508,237			2.22%	1,497,567,825	2.01%
Net profit attributable to	264,363,435			2.30%	833,066,529	6.16%
Huabao Flavours's shareholders
Net profit attributable to Huabao Flavours's	252,930,749			5.95%	746,997,075	7.42%
shareholders less the non-recurring items
Net cash flows arising from operating activities	-			-	802,288,161	5.45%
Basic earnings per share (RMB/share)	0.43			2.38%		1.35	3.85%
Diluted earnings per share (RMB/share)	0.43			2.38%		1.35	3.85%
Weighted average return on net assets	2.90%			-0.15%		10.02%	-0.03%
Non-recurring gain / loss items and amount								Unit: RMB (Yuan)
					Amount from the
Items				beginning of the year to		Explanations
				end of current
					reporting period
Gain and loss from disposal of non-current assets, including					-1,318,518
the portion offset with provision for impairment of assets
Government grants recognized in profit and loss of current period					Mainly due to the receipt of
(excluding those closely related to the Company's business and granted		115,470,534
under the State's policies according to certain quota of amount or		government subsidies
volume)
Investment income arising from gain or loss resulted from changes in
fair value of financial assets held for trading, derivative financial assets,
financial liabilities held for trading and derivative financial liabilities;
and disposal of financial assets held for trading, derivative financial				-5,932,411
assets, financial liabilities held for trading, derivative financial
liabilities and other debt investments, except those arising from the
effective hedging business related to the Company's normal operation
Non-operating income and expenses other than the above items					-1,585,964
Less: Income tax impact						20,018,326
Minority interests impact (after tax)						545,861
Total						86,069,454		-

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APPENDIX II

CHANGES IN MAJOR 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 and reasons for changes

									Unit: RMB (Yuan)
			End of current	End of	Increase /				Reasons for
			reporting
			last year	decrease			significant changes
			period
Financial assets	held	for				Mainly	due	to	the application of new financial
			instrument standard during the current period, the
trading/ financial	assets	at
456,723,634	274,298,227	66.51%	financial assets	held included in other current
fair value through profit or
			assets were classified as financial assets held for
loss
					trading.
						Mainly due to the application of new financial
						instrument standard during the current period, the
Other current assets		34,360,171	353,330,161	-90.28%	financial assets held included in other current
						assets were classified as financial assets held for
						trading.
Other equity instrument		21,749,987		100.00%	Mainly due to the increase in equity investments
investments				during the current period
						Mainly due to the reclassification of construction
Construction in progress		14,424,168	76,668,112	-81.19%	in progress under projects funded by proceeds of
						IPO to fixed assets.
Tax payable			176,263,145	254,202,507	-30.66%	Mainly due to the decreases in VAT and income
		tax payables
Other payable			33,256,784	51,205,487	-35.05%	Mainly due to the decrease in payable for fixed
		assets payment
Other comprehensive		40,035,134	27,182,473	47.28%	Mainly	due	to	the exchange rate fluctuation
income			between RMB and foreign currencies
Retained profits			1,800,856,949	3,431,310,420	-47.52%	Mainly due to the distribution of dividends during
		the current period

2. Analysis of changes in major items in Income Statement and reasons for changes

				Unit: RMB (Yuan)
	Amount from the
	beginning of the	Same reporting	Increase /	Reasons for
	year to end of	period of
	decrease	significant changes
	current reporting	last year
	period
Profit and loss arising from				Mainly due to the fluctuation in fair value of
changes in fair value	-13,746,356		-100%
	financial assets held for trading
(loss is represented by "-")
Investment income				Mainly due to the gain or loss from the
10,617,908	5,097,389	108.30%	disposal of investment in financial assets held
(loss is represented by "-")
			for trading in the current year

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APPENDIX II

CHANGES IN MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS DURING THE REPORTING PERIOD OF HUABAO FLAVOURS & FRAGRANCES CO., LTD. (CONTINUED)

3. Analysis of changes in major items in Cash Flow Statement and reasons for changes

							Unit: RMB (Yuan)
	Amount from the
	beginning of the	Same reporting	Increase /		Reasons for
	year to end of	period of
	decrease		significant changes
	current reporting	last year
	period
Net cash generated from				Mainly	due to the	receipt of	government
802,288,161	760,791,056	5.45%	subsidies, increase	in	interest	income	and
operating activities
			decrease in tax payment
Net cash generated from				Mainly	due to the	fixed deposits and	the
-339,590,081	-2,468,464,330	86.24%	wealth	management	products	had been
investing activities
			matured during the current period
				Mainly due to the distribution of cash
Net cash generated from	-2,474,821,660	2,173,456,338	-213.87%	dividends to shareholders during the current
financing activities	period and fund raised from public offering
				of shares in the same period last year.
Effect of changes in foreign				Mainly due to changes in the exchange rate
exchange rate on cash and	7,281,535	18,184,411	-59.96%	of RMB against foreign currencies during the
cash equivalents				current period

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