Huabao International : INSIDE INFORMATION - PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS FOR THE YEAR ENDED 31 DECEMBER 2020 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

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS

FOR THE YEAR ENDED 31 DECEMBER 2020

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 of Shenzhen Stock Exchange (Stock Code: 300741). In compliance with the relevant applicable regulations of Shenzhen Stock Exchange, Huabao Flavours published its 2020 Yearly Report for the year ended 31 December 2020 on 19 March 2021 on the information disclosure webpage of Shenzhen Stock Exchange's website athttp://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 year ended 31 December 2020.

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, 19 March 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

Principal accounting data and financial indicators of Huabao Flavours prepared in accordance with the PRC Accounting Standard for Business Enterprises for the year ended 31 December 2020

APPENDIX I. PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS

Unit: RMB (Yuan)

Year 2020	Year 2019	Increase / decrease of current year compared with last year	Year 2018
Before adjustment	After adjustment	After adjustment	Before adjustment	After adjustment
Operating revenue	2,094,459,854	2,185,338,829	2,185,338,829	-4.16%	2,169,074,354	2,169,074,354
Net profit attributable to Huabao Flavours' shareholders	1,180,204,657	1,235,528,865	1,235,214,129	-4.45%	1,175,693,277	1,175,692,447
Net profit attributable to Huabao Flavours' shareholders less non-recurring items	1,056,761,980	1,117,665,317	1,117,586,633	-5.44%	1,064,590,822	1,064,590,822
Net cash flow arising from operating activities	1,088,595,232	1,297,541,773	1,297,541,773	-16.10%	1,267,574,109	1,267,573,279
Basic earnings per share (RMB/share)	1.92	2.01	2.01	-4.48%	1.94	1.94
Diluted earnings per share (RMB/share)	1.92	2.01	2.01	-4.48%	1.94	1.94
Weighted average return on net assets	15.64%	15.50%	15.50%	0.14%	14.57%	14.57%
End of the Year 2020	End of the Year 2019	Increase / decrease of the current year end compared with the last year end	End of the Year 2018
Before adjustment	After adjustment	After adjustment	Before adjustment	After adjustment
Total assets	8,349,999,362	8,378,706,551	8,379,346,156	-0.35%	9,627,082,061	9,627,223,553
Net assets attributable to Huabao Flavours' shareholders	7,722,651,979	7,772,240,105	7,772,066,861	-0.64%	8,988,630,484	8,988,771,976

APPENDIX II.

QUARTERLY PRINCIPAL FINANCIAL INDICATORS

Unit: RMB (Yuan)

1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Operating revenue	445,224,013	490,424,919	507,193,557	651,617,365
Net profit attributable to Huabao Flavours' shareholders	269,023,191	277,064,547	273,658,410	360,458,509
Net profit attributable to Huabao Flavours' shareholders less non-recurring items	252,808,351	217,680,029	252,735,894	333,537,706
Net cash flow arising from operating activities	158,412,508	348,973,577	297,672,762	283,536,385

APPENDIX III.

NON-RECURRING GAIN / LOSS ITEMS AND AMOUNTS

Unit: RMB (Yuan)

Item	Year 2020	Year 2019	Year 2018	Explanations
Gain/loss from disposal of non-current assets, including the portion offset from the provision for impairment of assets	-3,802,179	-2,990,860	2,770,415
Government grants recognized in profit and loss of current period (excluding those closely related to the Company's business and granted under the State's policies according to certain quota of amount or volume)	146,207,802	143,046,541	127,189,619
Net gain/loss of subsidiaries arising from business combination under common control from beginning of the current period to the date of business combination	-2,440,789	-314,736	-830
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, derivative financial liabilities and disposal of financial assets held for trading, derivative financial 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	8,815,581	3,030,450	4,310,986
Non-operating income and expenses other than the above items	-1,162,615	-445,674	-301,830
Investment income from disposal of subsidiaries and associates	-1,456,577	-2,539,176
Less:Income tax impact	21,622,058	23,866,963	19,347,664
Minority interest impact (after tax)	1,096,488	831,262	979,895
Total	123,442,677	117,627,496	111,101,625	--