DFZQ — Earnings Release 2020

Jan 22, 2020

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 EXPECTED INCREASE IN ANNUAL RESULTS FOR THE YEAR OF 2019

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. EXPECTED RESULTS FOR THIS PERIOD

(I) Period covered by the expected results

From January 1, 2019 to December 31, 2019.

(II) Expected Results

1. Based on preliminary assessment by the financial department of the Company, it is expected that the net profit attributable to shareholders of the listed company for the year of 2019 will be RMB2.350 billion to RMB2.500 billion, which will be increased by RMB1.119 billion to RMB1.269 billion, representing an increase of 90.9% to 103.1% compared with the corresponding period of previous year.

2. It is expected that the net profit after non-recurring profit or loss attributable to shareholders of the listed company will be RMB2.273 billion to RMB2.423 billion, which will be increased by RMB1.093 billion to RMB1.243 billion, representing an increase of 92.6% to 105.3% 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 was RMB1.231 billion. The net profit after non-recurring profit or loss attributable to shareholders of the listed company was RMB1.180 billion.

• (II) Earnings per share were RMB0.18.

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

In 2019, the securities industry picked up with Shanghai Composite Index up by 22.3% and trading volume of stocks and funds witnessing increase. The Company actively grasped market opportunities, took the initiative and rode on industry dynamics and revenue from the securities investment business, wealth management business and international business of the Company recorded year-on-year increase to various extents. The Company secured admirable operating results and achieved a significant increase in net profit attributable to shareholders of the listed company.

IV. RISK ALERTS

The expected results of the Company have not been audited by the accounting firm, and the accounting firm has not issued special explanation on whether the content in the expected results of the Company is appropriate and prudent. The Company is not aware of any substantial uncertainties which may affect the accuracy of the expected results.

V. OTHER EXPLANATORY MATTERS

The data set out above is based on the Company’s preliminary assessment. The specific and accurate financial data should be subject to the audited 2019 annual report to be officially disclosed by the Company. Investors are advised to pay attention to the investment risks.

By order of the Board of Directors PAN Xinjun Chairman

Shanghai, PRC January 22, 2020

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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