DFZQ — Interim / Quarterly Report 2020

Oct 26, 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 PRELIMINARY FINANCIAL DATA FOR THE FIRST THREE QUARTERS 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 first three quarters of 2020 as set out in this announcement is preliminary accounting data, which has not been audited by an accounting firm. The specific data should be those to be disclosed in the third quarterly report for the year 2020 of the Company. Investors are advised to pay attention to such investment risks involved.

I. MAJOR FINANCIAL DATA AND INDICATORS FOR THE FIRST THREE QUARTERS OF 2020

Currency: RMB Units: ’0,000

		The
		corresponding
	The reporting	period of	Increase or
Item	period	previous year	decrease (%)
Total operating revenue	1,605,149.13	1,360,748.02	17.96
Operating profit	343,616.95	197,938.97	73.60
Total profit	353,907.23	207,348.05	70.68
Net profit attributable to the
shareholders of the listed company	305,088.29	174,141.07	75.20
Net profit after non-recurring profit or
loss attributable to the shareholders
of the listed company	296,133.16	167,096.22	77.22
Basic earnings per share (RMB)	0.43	0.25	72.00
Weighted average return on			Increased by 2.22
net assets (%)	5.53	3.31	percentage points

– 1 –

	As at the end of
	the reporting	As at the end of	Increase or
Item	period	previous year	decrease (%)
Total assets	29,368,918.96	26,297,144.16	11.68
Equity attributable to the shareholders
of the listed company	6,046,930.39	5,396,551.63	12.05
Share capital	699,365.58	699,365.58	0.00
Net assets per share attributable to
the shareholders of the listed
company (RMB)Note	8.65	7.72	12.05

Note: The net assets per share attributable to the shareholders of the listed company as at the end of the reporting period shown in the above table include the perpetual subordinated bonds issued by the Company during the reporting period. After excluding such effect, the net assets per share attributable to the shareholders of ordinary shares of the listed company as at the end of the reporting period shall be RMB7.93.

II. DETAILS OF OPERATING RESULTS AND FINANCIAL POSITIONS

In the first three quarters of 2020, the securities market witnessed an upsurge after a decline in major indices with continuous increase in trading volume. The Company maintained stable operation with favourable development momentum in all its business lines.

During the reporting period, the Company achieved operating revenue of RMB16,051 million and net profit attributable to shareholders of the listed company of RMB3,051 million, representing an increase of 17.96% and 75.20% respectively over the same period of last year. Changes in the above items were mainly due to the significant year-on-year increase in the revenue from the Company’s securities proprietary investment business and the fee income from brokerage, investment banking, asset management and other businesses.

At the end of the reporting period, the equity attributable to the shareholders of the listed company was RMB60,469 million, representing an increase of 12.05% as compared with the end of last year, which was mainly due to the fact that during the reporting period, in addition to the revenue from different business lines, the Company issued perpetual subordinated bonds with an amount of RMB5.0 billion, resulting in the increase of other equity instruments.

III. RISK WARNINGS

The major financial data for the first three quarters of 2020 as set out in this announcement, which is preliminary accounting data, may be different from the data to be disclosed in the third quarterly report for the year 2020, but it is expected that the abovementioned difference would not exceed 10%. Investors are advised to pay attention to such investment risks involved.

– 2 –

IV. DOCUMENTS AVAILABLE FOR INSPECTION

The comparative balance sheet and income statement are signed and sealed by Mr. Jin Wenzhong who currently acts as the 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 October 26, 2020

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, Mr. XU Jianguo and Mr. CHEN Xiaobo 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.

– 3 –