DFZQ — Earnings Release 2018

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 PRELIMINARY FINANCIAL DATA 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.

The major financial data for the year of 2017 as set out in this announcement is preliminary accounting data under the China Accounting Standards for Business Enterprises, which has not been audited by an accounting firm. The specific data should be those to be disclosed in the 2017 annual report of the Company (the “ 2017 Annual Report ”). Investors are advised to pay attention to such investment risks involved.

I. MAJOR FINANCIAL DATA AND INDICATORS FOR THE YEAR OF 2017 (CONSOLIDATED)

Currency: RMB Units: RMB ’0,000

		The
		corresponding
	The reporting	period of	Increase or
Item	period	previous year	decrease (%)
Total operating revenue	1,053,151.13	687,618.89	53.16
Operating profit	410,483.78	260,267.97	57.72
Total profit	438,851.22	281,332.29	55.99
Net profit attributable to the
shareholders of the listed company	355,362.64	231,397.49	53.57
Net profit after non-recurring profit
or loss attributable to the shareholders
of the listed company	335,029.80	216,435.73	54.79
Basic earnings per share	0.57	0.41	39.02
(RMB)
Weighted average return on	8.61	6.25	Increased by 2.36
net assets (%)			percentage points

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	As at	As at
	the end of	the beginning of
	the reporting	the reporting	Increase or
	period	period	decrease (%)
Total assets	23,185,998.83	21,241,108.74	9.16
Equity attributable to the shareholders
of the listed company	5,298,550.14	4,048,289.85	30.88
Share capital	699,365.58	621,545.20	12.52
Net assets per share attributable
to the shareholders of the
listed company (RMB)	7.58	6.51	16.44

Note 1: In accordance with the “Notice on the Revision of the Format for Issuing General Enterprise Financial Statements” (《關於修訂印發一般企業財務報表格式的通知》) (CAI KUAI [2017] No.30) issued by the Ministry of Finance on December 25, 2017, the data of the corresponding period of last year has been adjusted by the Company.

Note 2: The registration of the non-public issuance of A Shares of the Company has been completed with Shanghai Branch of China Securities Depository and Clearing Corporation Limited (中國證券登記結算有限責任公司上海分公司) on December 28, 2017. Earnings per share for the reporting period has been calculated on the basis of the weighted average number of ordinary shares.

II. DETAILS OF OPERATING RESULTS AND FINANCIAL POSITIONS

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, achieving relatively satisfactory operating results and a significant increase in the revenue and profit.

During the reporting period, the Company realized operating income of RMB10.532 billion, representing an increase of 53.16% over the same period of last year; operating profit of RMB4.105 billion, representing an increase of 57.72% over the same period of last year; total profit of RMB4.389 billion, representing an increase of 55.99% over the same period of last year; net profit attributable to the shareholders of the listed company of RMB3.554 billion, representing an increase of 53.57% over the same period of last year; net profit after non-recurring profit or loss attributable to the shareholders of the listed company of RMB3.350 billion, representing an increase of 54.79% over the same period of last year; basic earnings per share of RMB0.57, representing an increase of 39.02% over the same period of last year. The changes in the abovementioned items are mainly attributable to the increase in the revenue and profit of the Company driven by a significant improvement as the results of securities investment business and assets management business.

At the end of the reporting period, the equity attributable to the shareholders of the listed company of the Company was RMB52.986 billion, representing an increase of 30.88% over the beginning of the period, which was mainly due to the successful completion of the non-public issuance of A Shares and the realization of profit during the reporting period.

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III. RISK WARNINGS

The major financial data for the year of 2017 as set out in this announcement, which is preliminary accounting data, may be different from the data to be disclosed in the 2017 Annual Report, but it is expected that the abovementioned difference would not exceed 10%. Investors are advised to pay attention to such investment risks involved.

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 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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