CSC Financial Co., Ltd. — Earnings Release 2020

Jan 22, 2021

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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(A joint stock company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 6066)

PRELIMINARY FINANCIAL DATA FOR THE YEAR OF 2020

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

The principal financial data and indicators of CSC Financial Co., Ltd. (the “ Company ”) for the year of 2020 as set out in this announcement are preliminary data prepared in accordance with the PRC GAAP, and have not been audited by the reporting accountants. The final figures will be formally disclosed in the 2020 annual report of the Company. Investors are advised to exercise caution when dealing in the shares of the Company.

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1. PRINCIPAL FINANCIAL DATA AND INDICATORS FOR THE YEAR OF 2020 (CONSOLIDATED AND UNAUDITED)

Unit: RMB million

		For the
	During	corresponding
	the reporting	period of
	period	previous
	(twelve months	year (twelve
	ended	months ended
	December 31,	December 31,
Item	2020)	2019)	Change
			(%)
Operating revenue	23,350.88	13,693.19	70.53
Operating profit	12,165.15	7,165.01	69.79
Profit before income tax	12,125.72	7,153.74	69.50
Net profit attributable to equity holders of
the Company	9,509.43	5,501.69	72.85
Net profit attributable to equity holders of
the Company excluding extraordinary
gains and losses	9,498.77	5,487.30	73.10
Basic earnings per share (in RMB)	1.20	0.67	79.10
Return on weighted average equity			Increased by
attributable to ordinary shareholders			6.67 percentage
of the Company (%)	18.18	11.51	points
		At the
	At the end of	beginning of
	the reporting	the reporting
	period	period
	(December 31,	(December 31,
Item	2020)	2019)	Change
			(%)
Total assets	371,228.14	285,669.62	29.95
Equity attributable to equity holders of the
Company	67,735.18	56,581.92	19.71
Share capital	7,756.69	7,646.39	1.44
Net assets per share attributable to equity
holders of the Company (in RMB) (Note)	8.73	7.40	17.97

Note: The net assets per share attributable to equity holders of the Company shown in the above table include perpetual subordinated bonds issued by the Company. Upon deducting such impact, net assets per share attributable to holders of ordinary shares of the Company as at the end of the reporting period amounted to RMB7.45. (December 31, 2019: RMB6.09)

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2. EXPLANATION ON THE OPERATING RESULTS AND FINANCIAL POSITION

In 2020, the capital market maintained a good momentum of development. The Company proactively grasped the market opportunities and maintained sound development in various businesses. In 2020, the Company’s operating revenue increased by 70.53% to RMB23.351 billion over the corresponding period of the previous year, while net profit attributable to equity holders of the Company increased by 72.85% to RMB9.509 billion over the corresponding period of the previous year. The increase in profit was mainly due to the significant growth in the income from main businesses including the income from proprietary investment business, the net commission income from brokerage business and the net commission income from investment banking business of the Company, as compared to the same period of the previous year.

At present, with sound asset structure, strong liquidity and excellent asset quality, various risk control indicators of the Company meet the regulatory requirements.

3. RISK WARNING

The principal financial information for the year of 2020 as set out in this announcement, which is preliminary data, may be different from the data to be disclosed in the 2020 annual report of the Company, but it is expected that the above-mentioned difference would not exceed 10%. Investors are advised to exercise caution when dealing in the shares of the Company.

4. DOCUMENTS AVAILABLE FOR INSPECTION

The balance sheet and income statement duly signed and stamped with the official chop of the Company by the legal representative of the Company, Mr. WANG Changqing, the Chief Accountant, Mr. LI Geping, and the head of the Company’s accounting department, Mr. ZHAO Ming, are available for inspection.

By order of the Board CSC Financial Co., Ltd. Wang Changqing Chairman

Beijing, the PRC January 22, 2021

As at the date of this announcement, the executive Directors of the Company are Mr. WANG Changqing and Mr. LI Geping; the non-executive Directors of the Company are Mr. YU Zhongfu, Mr. Wang Xiaolin, Ms. ZHANG Qin, Ms. ZHU Jia, Mr. WANG Hao; and the independent non-executive Directors of the Company are Mr. FENG Genfu, Ms. ZHU Shengqin, Mr. DAI Deming, Mr. BAI Jianjun and Mr. LIU Qiao.

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