DFZQ — Earnings Release 2019

Jan 25, 2019

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 DECREASE IN ANNUAL RESULTS FOR THE YEAR 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.

I. ESTIMATED RESULTS FOR THIS PERIOD

(I) Period covered by the estimated results

From January 1, 2018 to December 31, 2018.

(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 2018 will be approximately RMB1,239.1344 million, which will be reduced by approximately RMB2,314.4920 million, representing a decrease of approximately 65.13% compared with the corresponding period of previous year.

2. The net profit after non-recurring profit or loss attributable to shareholders of the listed company will be approximately RMB1,183.5107 million, which will be reduced by approximately RMB2,166.7873 million, representing a decrease of approximately 64.67% compared with the corresponding period of previous year.

II. RESULTS FOR THE CORRESPONDING PERIOD OF PREVIOUS YEAR

• (I) The net profit attributable to shareholders of the listed company is RMB3,553.6264 million. The net profit after non-recurring profit or loss attributable to shareholders of the listed company is RMB3,350.2980 million.

• (II) Earnings per share is RMB0.57.

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

• (I) Impact of proprietary business

Affected by the drastic shocks and sharp adjustments in the securities market, the gains from fair value changes and investment income of the Company’s proprietary equity investments both fell sharply compared with the corresponding period of previous year, which was the main factor behind the performance decline of the Company.

• (II) Impact of the new financial instruments standards

In 2018, with the implementation of the new financial instruments standards, the price fluctuations of equity instruments held by the Company were directly reflected in the profits, and the performance of the Company was increasingly affected by market fluctuations.

• (III) Impact of non-operating profit and loss

In 2018, the impact of non-recurring profit and loss on net profit attributable to the shareholders of listed company was RMB56 million, representing a decrease of 72.64% compared with the corresponding period of previous year. The main reason for the decrease in non-recurring profit and loss was the decrease in government subsidies received.

• (IV) The base of the corresponding period of previous year was relatively large.

IV. RISK WARNINGS

This estimated results of the Company has not been audited by an accounting firm, and the accounting firm has not issued special explanation on whether the content in this estimated results of the Company is appropriate and prudent. There is no substantial uncertainty in respect of the Company which will affect the accuracy of the content in this estimated results.

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V. OTHER EXPLANATORY MATTERS

The data set out in this announcement is only preliminary accounting data. The specific and accurate financial data should be those to be disclosed in the audited 2018 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 25, 2019

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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