DFZQ — Earnings Release 2021

Feb 5, 2021

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 2020

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(2) of the Listing Rules.

The major financial data for the year of 2020 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 2020 annual report of the Company (the “ 2020 Annual Report ”). Investors are advised to pay attention to such investment risks involved.

I. M A J O R F I N A N C I A L D A T A A N D I N D I C A T O R S F O R T H E Y E A R O F 2020 (CONSOLIDATED)

		Currency: RMB Units:’0,000	Currency: RMB Units:’0,000
		The
		corresponding
	The reporting	period	Increase or
Item	period	of previous year	decrease (%)
Total operating revenue	2,313,050.24	1,905,209.73	21.41
Operating profit	269,679.25	275,143.38	-1.99
Total profit	278,636.38	285,453.07	-2.39
Net profit attributable to the
shareholders of the listed company	272,298.85	243,507.98	11.82
Net profit after non-recurring profit or
loss attributable to the shareholders
of the listed company	266,625.48	237,141.10	12.43
Basic earnings per share (RMB)	0.38	0.35	8.57
Weighted average return on net assets	4.85	4.61	Increased by
(%)			0.24 percentage point

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	As at the end of
	the reporting	As at the end of	Increase or
	period	previous year	decrease (%)
Total assets	29,109,737.17	26,297,144.16	10.70
Equity attributable to the shareholders
of the listed company	6,011,956.32	5,396,551.63	11.40
Share capital	699,365.58	699,365.58	0.00
Net assets per share attributable to the
shareholders of the listed company
(RMB)	8.60	7.72	11.40

Note: net assets per share attributable to the shareholders of the listed company in the above table include the perpetual subordinated bonds issued by the Company. Excluding the effect thereof, net assets per share attributable to the ordinary shareholders of the listed company as at the end of the reporting period shall be RMB7.88.

II. DETAILS OF OPERATING RESULTS AND FINANCIAL POSITIONS

In 2020, amid the backdrop of continuous in-depth reform and despite the adverse effects brought about by the COVID-19 pandemic, major stock indicators in the domestic capital market surged following a drop and the market continued to gain momentum. In face of the macro environment with both challenges and opportunities, the Company took a sober stance and stayed committed to steady operation, maintaining the growth of its operating results.

Throughout 2020, the Company achieved operating revenue of RMB23,131 million and net profit attributable to shareholders of the listed company of RMB2,723 million, representing an increase of 21.41% and 11.82% over the same period of last year, respectively, which was primarily due to the year-on-year revenue increase recorded by our principal businesses, including the brokerage business, proprietary trading business and wealth management business. Meanwhile, the Company carefully assessed the expected credit risks of its share pledge and other projects and increased impairment provision made thereon.

As at the end of 2020, the Company achieved total assets of RMB291,097 million and equity attributable to the shareholders of the listed company of RMB60,120 million, representing an increase of 10.70% and 11.40% from the end of the previous year, respectively.

III. RISK WARNINGS

The major financial data for the year of 2020 as set out in this announcement, which is preliminary accounting data, may be different from the data to be disclosed in the 2020 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.

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IV. DOCUMENTS AVAILABLE FOR INSPECTION

The comparative balance sheet and income statement which are signed and sealed by Mr. JIN Wenzhong, the current legal representative of the Company, Mr. ZHANG Jianhui, the accounting chief and Mr. YOU Wenjie, person-in-charge of the accounting department of the Company.

By order of the Board of Directors JIN Wenzhong Executive Director

Shanghai, PRC February 5, 2021

As at the date of this announcement, the Board of Directors comprises Mr. JIN Wenzhong as executive Director; Mr. LIU Wei, Mr. WU Junhao, Mr. ZHOU Donghui, Mr. LI Xiang, Ms. XIA Jinghan and Mr. XU Jianguo as non-executive Directors; and Mr. XU Zhiming, Mr. JIN Qinglu, Mr. WU Hong, Mr. FENG Xingdong and Mr. HE Xuan as independent non-executive Directors.

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