Central China Securities Co., Ltd. — Earnings Release 2018

Jan 30, 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.

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Central China Securities Co., Ltd.

(a joint stock company incorporated in 2002 in Henan Province, the People’s Republic of China with limited liability under the Chinese corporate name “中原証券股份有限公司” and carrying on business in Hong Kong as “中州証券”) (Stock Code: 01375)

ANNOUNCEMENT ON ESTIMATED DECREASE IN ANNUAL RESULTS FOR THE YEAR 2018

This announcement is made by the board (the “ Board ”) of Central China Securities Co., Ltd. (the “ Company ”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

I. PRELIMINARY RESULTS FOR THE PERIOD

(I) Period of Preliminary Results

1 January 2018 to 31 December 2018.

(II) Preliminary Results

1. Based on the preliminary estimates made by the finance department, it is estimated that the net profit attributable to the shareholders of the listed company for 2018 will decrease by RMB360 million to RMB379 million as compared with that for the corresponding period of 2017, representing a year-on-year decrease of 81% to 86%.

2. The net profit attributable to the shareholders of the listed company after deducting non-recurring gain or loss will decrease by RMB379 million to RMB399 million as compared with that for the corresponding period of 2017, representing a year-on-year decrease of 86% to 91%.

(III) The preliminary results have not been audited by certified public accountants.

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II. RESULTS FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR

• (I) Net profit attributable to the shareholders of the listed company: RMB441,982,600. Net profit attributable to the shareholders of the listed company after deduction of non-recurring gain or loss: RMB440,114,100.

• (II) Earnings per share: RMB0.11.

III. MAJOR REASONS FOR THE ESTIMATED DECREASE IN THE RESULTS FOR THIS PERIOD

(I) Impact of principal business

Due to the impact of the volatility of the securities market, the Company’s revenue from proprietary trading and brokerage businesses and others recorded a decline to a certain extent as compared with the corresponding period of 2017.

(II) Impact of credit impairment

In accordance with the Accounting Standards for Business Enterprises and the relevant provisions of the Company’s accounting policies, the Company increased the provision for credit impairment on the financial assets held under resale agreements.

IV. RISK WARNING

There are no material uncertainties in the Company that will affect the accuracy of the preliminary results.

V. OTHER MATTERS

The preliminary data set out above is only preliminary accounting data. The detailed and accurate financial data will be disclosed in the audited 2018 annual report of the Company. Investors are advised to pay attention to the investment risks.

By order of the Board of Central China Securities Co., Ltd. Jian Mingjun Chairman

Henan, the PRC 30 January 2019

As at the date of this announcement, the Board comprises executive directors Mr. JIAN Mingjun and Mr. CHANG Junsheng, non-executive directors Mr. LI Xingjia, Mr. WANG Lixin, Mr. TIAN Shengchun, Mr. ZHANG Xiaoqi and Mr. LU Benson Cheng, and independent non-executive directors Mr. YUEN Chi Wai, Mr. NING Jincheng, Mr. YU Xugang and Ms. ZHANG Dongming.

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