DFZQ — Earnings Release 2018

Oct 19, 2018

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company 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.

(A joint stock company incorporated in the People’s Republic of China with limited liability under the Chinese corporate name “ 東方證券股份有限公司 ” and carrying on business in Hong Kong as “ 東方證券 ” (in Chinese) and “DFZQ” (in English))

(Stock Code: 03958)

ANNOUNCEMENT ON PRELIMINARY FINANCIAL DATA FOR THE FIRST THREE QUARTERS OF 2018

This announcement is made by 東方證券股份有限公司 (the “ Company ”) 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 (Cap. 571 of the laws of Hong Kong) and Rule 13.09 of the Listing Rules.

The major financial data for the first three quarters of 2018 as set out in this announcement, which are preliminary accounting data, have not been audited by an accounting firm. The final data should be those to be disclosed in the third quarterly report for the year 2018 of the Company. The investors are reminded of the investment risks.

I. MAJOR FINANCIAL DATA AND INDICATORS FOR THE FIRST THREE QUARTERS OF 2018

Unit: ’0,000 Currency: RMB

		The
		corresponding
	The reporting	period of the
	period	previous year
	(January to	(January to	Increase or
Item	September)	September)	decrease (%)
Total operating revenue	656,569.35	705,932.93	-6.99
Operating profit	89,614.19	291,239.64	-69.23
Total profit	99,638.88	320,980.48	-68.96
Net profit attributable to
the shareholders of the
Company	90,385.26	262,891.54	-65.62
Net profit after non-recurring
profit or loss attributable to
the shareholders of the
Company	83,444.00	241,430.89	-65.44
Basic earnings per share (RMB)	0.13	0.42	-69.05
Weighted average return on net	1.74	6.37	Decreased by 4.63
assets (%)			percentage points

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	As at the end of	As at the end of	Increase or
Item	the reporting period	last year	decrease (%)
Total assets	22,700,065.71	23,185,998.83	-2.10
Equity attributable to
the shareholders of
the Company	5,143,879.31	5,298,550.14	-2.92
Share capital	699,365.58	699,365.58	0.00
Net assets per share attributable to
the shareholders of
the Company (RMB)	7.36	7.58	-2.90

Note: In accordance with the requirements of the Notice on the Amendments to the Format of General Corporate Financial Statements (《關於修訂印發一般企業財務報表格式的通知》) (Caikuai [2017] No. 30) issued by the Ministry of Finance on December 25, 2017, in respect of the Company’s gains on asset disposal under operating income, the comparative information of the comparable period was adjusted.

II. DETAILS OF OPERATING RESULTS AND FINANCIAL POSITIONS

In the first three quarters of 2018, affected by macroeconomic factors, the Shanghai Composite Index and Shenzhen Chengzhi Index decreased by 14.7% and 23.9% respectively compared with the beginning of the year. The trading volume of the Shanghai and Shenzhen stock markets declined, and IPO review became stricter. In this market environment, the proprietary trading and proprietary business of NEEQ and other businesses of the Company were affected, resulting in a significant decline in the Company’s year-on-year operating results.

During the reporting period, the Company achieved operating income of RMB6.566 billion and the net profit attributable to shareholders of the Company was RMB904 million, decreased by 6.99% and 65.62% respectively compared with the same period of the previous year. Changes of the above items were affected by, on the one hand, a higher basis of the same period of the previous year, and the market-influenced income of self-operated equity investment decreased significantly year-on-year, resulting in a decrease in profits of the Company compared with the same period of the previous year; on the other hand, the revenue and costs of the asset management business and commodity business of subsidiaries increased significantly compared with the same period of the previous year.

At the end of the reporting period, the equity attributable to shareholders of the Company was RMB51.439 billion, decreased by 2.92% compared with the end of the previous year, which was mainly attributable to the Company’s distribution of cash dividends in 2017 during the reporting period.

III. RISK WARNINGS

The major financial data for the first three quarters of 2018 as set out in this announcement, which is preliminary accounting data, may be different from the data to be disclosed in the third quarterly report for the year 2018, but it is expected that the abovementioned difference would not exceed 10%. Investors are advised to pay attention to such investment risks involved.

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IV. DOCUMENTS AVAILABLE FOR INSPECTION

The comparative balance sheet and income statement are signed and sealed by Mr. Pan Xinjun, the current legal representative of the Company, Mr. Zhang Jianhui, the accounting chief and person-in-charge of the accounting department of the Company.

By order of the Board of Directors PAN Xinjun Chairman

Shanghai, PRC October 19, 2018

As at the date of this announcement, the Board of Directors comprises Mr. PAN Xinjun and Mr. JIN Wenzhong as executive Directors; Mr. LIU Wei, Mr. WU Junhao, Mr. CHEN Bin, Mr. LI Xiang, Ms. XIA Jinghan, Mr. XU Jianguo and Mr. DU Weihua as non-executive Directors; and Mr. XU Guoxiang, Mr. TAO Xiuming, Mr. WEI Anning, Mr. XU Zhiming and Mr. JIN Qinglu as independent non-executive Directors.

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