DFZQ — Earnings Release 2017

Jan 26, 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 ESTIMATED INCREASE IN ANNUAL RESULTS FOR THE YEAR OF 2017

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) and Rule 13.09 of the Listing Rules.

I. ESTIMATED RESULTS FOR THIS PERIOD

(I) Period covered by the estimated results

From January 1, 2017 to December 31, 2017.

(II) Estimated Results

1. Based on preliminary calculations by the financial department, it is expected that the net profit attributable to shareholders of the listed company for the year of 2017 will increase by RMB1,239.6515 million, representing an increase of 53.57% over the same period of last year.

2. The net profit after non-recurring profit or loss attributable to shareholders of the listed company will increase by RMB1,185.9407 million, representing an increase of 54.79% over the same period of last year.

II. RESULTS FOR THE CORRESPONDING PERIOD OF LAST YEAR

• (I) The net profit attributable to shareholders of the listed company is RMB2,313.9749 million. The net profit after non-recurring profit or loss attributable to shareholders of the listed company is RMB2,164.3573 million.

• (II) Earnings per share is RMB0.41.

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III. MAJOR REASONS FOR ESTIMATED INCREASE IN RESULTS FOR THE PERIOD

During the reporting period, under the policy background of strict supervision and deleverage, the Company responded to the market development, maintained sound operation, enhanced compliance and risk management practices and promoted the transformation of various businesses in an all-round manner. The Company realized an operating income of RMB10.532 billion and net profit attributable to the shareholders of the listed company of RMB3.554 billion, representing an increase of 53.16% and 53.57% respectively over the same period of last year. At the end of the reporting period, equity attributable to the shareholders of the listed company was RMB52.986 billion, representing an increase of 30.88% over the beginning of the year.

The estimated increase in results for the reporting period is mainly attributable to the following factors:

(I) Impact of Principal Business

1. Revenue Growth in Securities Investment Business

For securities investment business, the Company always adheres to an investment philosophy of maintaining medium- and long-term core competitiveness value. The Company has increased the allocation of high-performing Blue Chips and overseas quality stocks, which achieved good investment performance.

2. Revenue Growth in Assets Management Business

The AUM of entrusted assets of the Company exceeded RMB200 billion for the first time, and the Dong Fang Hong series products outperformed their industry peers, leading to revenue growth in its assets management business.

(II) Impact of Non-recurring Profit or Loss

The impact on the net profit attributable to the shareholders of the listed company in 2017 from non-recurring profit or loss increased by RMB203 million, representing an increase of 35.90% over the same period of last year, mainly attributable to the increased government grant received.

IV. RISK WARNINGS

This estimated results of the Company has not been audited by an accounting firm, which is preliminary accounting data based on the Company’s own professional judgement. There is no substantial uncertainty in respect of the Company which will affect the accuracy of the content in this estimated results announcement.

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V. OTHER EXPLANATORY ITEMS

The data set out in this announcement is only preliminary accounting data. The specific and accurate data should be those to be disclosed in the 2017 annual report of the Company. Investors are advised to pay attention to such investment risks involved.

By order of the Board of Directors PAN Xinjun Chairman

Shanghai, PRC January 26, 2018

As at the date of this announcement, the Board of Directors comprises Mr. PAN Xinjun and Mr. JIN Wenzhong as executive Directors; Mr. WU Jianxiong, Mr. ZHANG Qian, Mr. WU Junhao, Mr. CHEN Bin, Mr. LI Xiang, Mr. XU Jianguo and Ms. HUANG Laifang 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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