Huabao International : Announcements and Notices - Inside Information - P ...

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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 OF

HUABAO FLAVOURS & FRAGRANCES CO., LTD.

FOR THE THREE MONTHS ENDED 31 MARCH 2019

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 its 2019 First Quarterly Report			for the three months ended
31 March 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 Appendix 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 three months ended 31 March 2019.

Please note that the information in the Appendix was unaudited and originally prepared by Huabao Flavours in Chinese. 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, 27 April 2019

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

* For identification purposes only

APPENDIX I

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS OF HUABAO FLAVOURS & FRAGRANCES CO., LTD.

				Unit: RMB(Yuan)
				Increase / decrease of
		Current reporting	Same reporting	current reporting period
		period	period of last year	over the same period of last
				year
Operating revenue		443,726,725	494,444,073	-10.26%
Net profit attributable to		293,310,068	277,045,355	5.87%
Huabao Flavours's shareholders
Net profit attributable to Huabao Flavours's		236,704,426	234,691,813	0.86%
shareholders less the non-recurring items
Net cash flows arising from operating activities		154,500,403	320,842,820	-51.85%
Basic earnings per share (RMB/share)		0.48	0.48	0.00%
Diluted earnings per share (RMB/share)		0.48	0.48	0.00%
Weighted average return on net assets		3.21%	4.26%	-1.05%
				Increase/ decrease of the
		End of the current		end of the current
			End of last year	reporting period as
		reporting period
				compared with the end of
				last year
Total assets		9,816,610,506	9,627,082,061	1.97%
Net assets attributable to		9,270,805,771	8,988,630,484	3.14%
Huabao Flavours's shareholders
Non-recurring gain / loss items and amount				Unit: RMB(Yuan)
Items			Amount from the	Notes
			beginning of the year to
			end of current period
Gain and loss from disposal of non-current assets, including			-625,995	--
the partial offset with the provision for impairment of assets
Government grants recognized in profit and loss of current period,				Mainly due to the
excluding those closely related to the Company's business and granted			62,574,861
				receipt of government
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				Mainly due to the changes in
fair value of financial assets held for trading, derivative financial assets,
financial liabilities held for trading, derivative financial liabilities and			4,582,373	fair value of financial assets
disposal of financial assets held for trading, derivative financial assets ,				held for trading and income
financial liabilities held for trading, derivative financial liabilities, and				from redemption of financial
other equity investment; except that arising from the effective hedging				assets upon maturity
business related to the Company's normal operation
Non-operating income and expenses other than the above items			-1,630,571	--
Less: Income tax impact			8,207,713	--
Minority interests impact (after tax)			87,313	--
Total			56,605,642	--

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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

								Unit: RMB (Ten Thousands)
	End of the	End of last	Increase/				Reasons for
Items	reporting
		year	Decrease (%)			significant changes
	period
Other receivables	6,885.66	5,282.38	30.35%	Mainly due to the increase in interest receivable
				and deferred expenses
Other current assets	4,294.19	35,333.02	-87.85%	Mainly due to the maturity and redemption of the
				bank financial products
Construction in progress	1,847.02	7,666.81	-75.91%	Mainly due to the completion of the construction
				in progress transferred to fixed assets
Other non-current assets	32.80	86.86	-62.23%	Mainly due to the decrease in prepayment for
				fixed assets
Receipts in advance	526.85	332.19	58.60%	Mainly due to the increase in receipts in advance
				from customers
Other current liabilities	1,315.86	2,539.95	-48.19%	Mainly	due	to	the	decrease	in output VAT
				payables
Other comprehensive	1,604.77	2,718.25	-40.96%	Mainly	due	to	the	exchange	rate fluctuation
				between RMB and foreign currencies during the
income
				current period

2.Analysis of changes in major items in Income Statement

					Unit: RMB (Ten Thousands)
	Current	Same
		reporting	Increase/		Reasons for
Items	reporting
		period of	Decrease (%)		significant changes
	period
		last year
Operating income	44,372.67	49,444.41	-10.26%	Mainly due	to the adjustment of customers'
				purchasing plan resulted from change of tax rate
Financial expenses	-4,982.84	-2,851.01	74.77%	Mainly due to the increase in interest income
				from deposit
Profit and loss arising from	-127.80	-	-100.00%	Mainly due to the changes in the fair value of the
changes in fair value
				financial assets held for trading
(loss is represented by "-")
Investment income	790.47	384.47	105.60%	Mainly due to maturity and redemption of the
(loss is represented by "-")				financial assets held in trading
Gains on disposals of assets	-62.60	146.50	-142.73%	Mainly due to the increase in loss from disposal
(loss is represented by "-")				of fixed assets
Non-operating expenses	165.82	1.02	16,176.27%	Mainly due to the increase in loss from
				written-off of fixed assets

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

					Unit: RMB (Ten Thousands)
	Current reporting	Same reporting	Increase/			Reasons for
Items		period
	period		Decrease (%)		significant changes
		of last year
				The operating income of the
				Company in first quarter was
				443,726,700, the			cash	received
Cash received from sales of				was	good	and	the	accounts
	51,082.14	75,891.07	-32.69%	receivable		remained stable. The
goods and provision of
				cash received amount was higher
services
				in the same period of last year was
				mainly due to the strengthening of
				customer credit management and
				improved the cash received.
		- 2 -

Payment of taxes and	14,177.78	21,312.88	-33.48%	Mainly	due to	the decrease in
surcharges				payment of VAT and income tax
Cash received from	100,210.00	1,505.00	6,558.47%	Mainly due to the maturity of bank
				fixed deposits and bank financial
disposal of investments
				products
				Mainly due to the increase in
Cash received from returns	2,442.94	799.44	205.58%	receipt	of interest from fixed
on investments				deposits and income from bank
				financial products
Cash paid to acquire fixed	2,715.69	990.58	174.15%	Mainly due to the increase in
assets, intangible assets				construction in progress of IPO
and other long-term assets				projects
Cash paid to acquire	10,424.41	210.00	4,864.00%	Mainly due to the increase in new
				placement of fixed deposits in the
investments
				current period
Cash received from capital	80.00	237,737.40	-99.97%	Mainly	due to	fund raised	from
				public	offering	of shares in	last
contributions
				reporting period

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