DFZQ — Interim / Quarterly Report 2020

Apr 29, 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)

THE FIRST QUARTERLY REPORT FOR THE YEAR 2020

The board (the “ Board ”) of directors (the “ Directors ”) of 東方證券股份有限公司 (the “ Company ”) hereby announces the unaudited results of the Company and its subsidiaries for the first quarter ended March 31, 2020, prepared in accordance with General Accepted Accounting Principles of the People’s Republic of China. This announcement is made pursuant to the Inside Information Provisions (as defined in The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Hong Kong Stock Exchange ”) (the “ Listing Rules ”)) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and Rules 13.09(2) and 13.10B of the Listing Rules.

This announcement contains the Chinese original version and English translation of the “The First Quarterly Report for the Year 2020 of Orient Securities Company Limited” as published on the website of the Shanghai Stock Exchange, and is provided for your reference only. In case of discrepancy between the Chinese version and the English version, the Chinese version shall prevail.

By order of the Board of Directors PAN Xinjun Chairman

Shanghai, PRC April 29, 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. 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.

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Orient Securities Company Limited

The First Quarterly Report for the Year 2020

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CONTENTS

I.	IMPORTANT NOTICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
II.	COMPANY PROFILE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
III.	MATERIAL EVENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9
IV.	APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12

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I. IMPORTANT NOTICE

• 1.1 The Board, the supervisory committee of the Company and its Directors, supervisors and senior management warrant that the information contained herein is true, accurate and complete and there are no false representations, misleading statements contained in or material omissions from this quarterly report, for which they will assume joint and several liabilities.

• 1.2 The First Quarterly Report for the Year 2020 of the Company was considered and approved at the 19th meeting of the fourth session of the Board and the 14th meeting of the fourth session of the supervisory committee of the Company. No Director or supervisor raised an objection to the report.

• 1.3 The person-in-charge of the Company, Mr. Pan Xinjun, the accounting chief, Mr. Zhang Jianhui and person-in-charge of the accounting department (head of the accounting department), Mr. You Wenjie, warrant the truthfulness, accuracy and completeness of the financial statements set out in this quarterly report.

• 1.4 This first quarterly report of the Company was unaudited.

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II. COMPANY PROFILE

2.1 Key financial information

Unit: Yuan Currency: RMB

			Increase/decrease
			recorded at the end
			of this reporting period
			as compared with
	At the end of	At the end of	the end of
	this reporting period	the previous year	the previous year (%)
Total assets	278,353,290,619.06	262,971,441,570.13	5.85
Net assets attributable to the
shareholders of the Company	54,937,203,812.26	53,965,516,313.13	1.80
		From the beginning
		of the previous year	Increase/decrease
	From the beginning	to the end	as compared with
	of the year to the end	of the reporting period	the corresponding period
	of this reporting period	of the previous year	of the previous year (%)
Net cash flows from operating activities	3,437,569,646.59	6,520,526,052.27	-47.28
		From the beginning
		of the previous year	Increase/decrease
	From the beginning	to the end	as compared with
	of the year to the end	of the reporting period	the corresponding period
	of this reporting period	of the previous year	of the previous year (%)
Operating income	3,827,315,338.54	4,067,657,141.89	-5.91
Net profit attributable to the
shareholders of the Company	813,084,162.43	1,269,514,969.30	-35.95
Net profit attributable to the
shareholders of the Company
after deducting non-recurring
profit or loss	729,067,002.06	1,171,825,842.17	-37.78
Weighted average returns on			Decreased by
net assets (%)	1.49	2.41	0.92 percentage points
Basic earnings per share (RMB/share)	0.12	0.18	-33.33
Diluted earnings per share
(RMB/share)	N/A	N/A	N/A

– 5 –

Non-recurring items and amounts

✓Applicable □ Not Applicable

Unit: Yuan Currency: RMB

	Amounts for
Items	this period	Remarks
Gains or losses from disposals of	1,560.21
non-current assets
Government grants recognized in current profit or loss, excluding	115,602,692.13	Government grants
those closely related to the Company’s normal operations
and granted on an ongoing basis under the State’s policies
according to certain quota of amount or volume
Other non-operating income and	-3,581,371.85
expenses except the items above
Effect of income tax	-28,005,720.12
Total	84,017,160.37

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• 2.2 The table below sets out the total number of shareholders, and the shareholding of the top ten shareholders and the top ten shareholders of circulating shares (or shareholders not subject to restriction on sales) as at the end of the reporting period

Unit: Share

Total number of shareholders (accounts)

Total number of shareholders (accounts	)					140,838
	Shareholding of the top ten shareholders
	Number of
	shares held
	as at the end of		Number of
	the reporting	Percentage	restricted			Nature of
Name of shareholders (Full name)	period	(%)	shares held	Pledged or frozen		shareholders
				Status of	Number of
				shares	shares
Shenergy (Group) Company Limited	1,767,522,422	25.27	230,000,000	Nil	1,767,522,422	State-owned
						legal person
Hong Kong Securities Clearing Company	1,026,967,580	14.68	–	Nil	1,026,967,580	Foreign legal
Nominees Limited						person
Shanghai Haiyan Investment Management	345,486,596	4.94	59,215,263	Nil	345,486,596	State-owned
Company Limited						legal person
Shanghai United Media Group	241,451,906	3.45	–	Nil	241,451,906	State-owned
						legal person
China Securities Finance Corporation	209,110,425	2.99	–	Nil	209,110,425	Unknown
Limited
Zheneng Capital Holdings Limited	208,700,000	2.98	–	Nil	208,700,000	State-owned
(浙能資本控股有限公司)						legal person
China Post Group Corporation	178,743,236	2.56	–	Nil	178,743,236	State-owned
						legal person
Shanghai Electric (Group) Corporation	150,853,059	2.16	–	Nil	150,853,059	State-owned
						legal person
Shanghai Jinqiao Export Processing Zone	137,065,398	1.96	–	Nil	137,065,398	Domestic non-
Development Co., Ltd.						state-owned
(上海金橋出口加工區開發股份						legal person
有限公司)
Shanghai Construction Group Co., Ltd.	133,523,008	1.91	–	Nil	133,523,008	State-owned
						legal person

– 7 –

Unit: Share

Shareholding of the top ten shareholders of non-restricted shares

	Number of
	circulating
	non-restricted
Name of shareholders	shares held	Type and number of shares
		Type	Number
Shenergy (Group) Company Limited	1,537,522,422	RMB ordinary	1,537,522,422
		shares
Hong Kong Securities Clearing Company	1,026,967,580	Overseas listed	1,026,967,580
Nominees Limited		foreign shares
Shanghai Haiyan Investment Management	286,271,333	RMB ordinary	286,271,333
Company Limited		shares
Shanghai United Media Group	241,451,906	RMB ordinary	241,451,906
		shares
China Securities Finance Corporation Limited	209,110,425	RMB ordinary	209,110,425
		shares
Zheneng Capital Holdings Limited	208,700,000	RMB ordinary	208,700,000
(浙能資本控股有限公司)		shares
China Post Group Corporation	178,743,236	RMB ordinary	178,743,236
		shares
Shanghai Electric (Group) Corporation	150,853,059	RMB ordinary	150,853,059
		shares
Shanghai Jinqiao Export Processing	137,065,398	RMB ordinary	137,065,398
Zone Development Co., Ltd.		shares
(上海金橋出口加工區開發股份
有限公司)
Shanghai Construction Group Co., Ltd.	133,523,008	RMB ordinary	133,523,008
		shares
Related party relationship or parties acting		N/A
in concert among above shareholders

• 2.3 The table below sets out the total number of preferred shareholders, and shareholding of top ten preferred shareholders and top ten preferred shareholders not subject to restriction on sales as at the end of the reporting period

□ Applicable ✓Not Applicable

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III. MATERIAL EVENTS

• 3.1 Material changes in major accounting statement items and financial indicators of the Company and the reasons for such changes

✓Applicable □ Not Applicable

Unit: Yuan Currency: RMB

	As at the end	As at the beginning	Increase/
Items	of the period	of the year	Decrease (%)	Reasons
Receivables	703,296,165.81	1,019,919,667.42	-31.04	Mainly due to decrease in
				settlement receivables
Investment properties	39,526,770.84	30,071,334.10	31.44	New property for rent
Construction in progress	75,129,407.37	50,034,280.51	50.16	Increase in office
				decoration expenses
Short-term borrowings	1,055,924,459.79	640,153,529.20	64.95	Increase in subsidiaries’
				credit loans
Due to banks and other financial	3,787,921,666.67	6,384,658,783.33	-40.67	Decrease in borrowings
institutions				from companies of the
				same industry
Funds payable to securities issuers	510,972,220.61	80,000,000.00	538.72	Increase in stocks
				underwriting agent fees
				of subsidiaries
Payables	732,805,068.80	480,101,048.74	52.64	Increase in settlement
				payables and bills
				payables of subsidiaries
Contract liability	405,517,675.55	208,113,569.43	94.85	Increase in advance
				receivables of
				subsidiaries
Other comprehensive income	673,501,637.12	499,960,781.41	34.71	Mainly due to changes of
				the other comprehensive
				income brought by
				changes in fair value of
				other debt investment

– 9 –

Unit: Yuan Currency: RMB

		Corresponding period	Increase/
Items	Current period	of last year	Decrease (%)	Reasons
Investment gains	1,250,981,501.56	263,993,055.55	373.87	Mainly due to increase
				in investment gains of
				financial assets
Gains from changes in fair value	-398,459,025.95	1,322,910,743.18	-130.12	Mainly due to decrease in
				changes in the fair value
				of transactional financial
				assets
Foreign exchange gains	68,186,389.56	-10,139,091.85	N/A	Effect of changes of foreign
				exchange rates
Gains from disposal of assets	-57,711.91	554,546.85	-110.41	Decrease in gains from
				disposal of fixed assets
Business tax and surcharges	20,287,687.44	12,467,990.02	62.72	Mainly due to increase in
				additional tax resulting
				from increase in
				value-added tax
Credit impairment loss	-1,583,765.09	9,561,713.04	-116.56	Mainly due to impairment
				reverse of the current
				period
Non-operating expenses	3,941,368.70	1,896,289.40	107.85	Mainly due to increase in
				donations by subsidiaries
Other comprehensive income after tax,	158,603,336.70	568,247,614.75	-72.09	Mainly due to decrease in
net				changes of fair value of
				other equity investment
Basic earnings per share (RMB/share)	0.12	0.18	-33.33	Due to decrease of
				net profit

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3.2 Analysis and description on the updates, impacts and solutions of material events

✓Applicable □ Not Applicable

On April 22, 2020, the change of industrial and commercial registration of the Company’s acquisition of the 33.33% equity interests in Citi Orient Securities Co., Ltd. and the change of the enterprise name of Citi Orient Securities Co., Ltd. have been completed and the new business license of Citi Orient Securities Co., Ltd. issued by the Shanghai Municipal Administration for Market Regulation is obtained. The enterprise name of Citi Orient Securities Co., Ltd. is therefore changed to Orient Securities Investment Banking Co., Ltd. Orient Securities Investment Banking Co., Ltd becomes a wholly-owned subsidiary of the Company. (announcement No.: 2020-031)

3.3 Undertakings that have not yet been duly fulfilled during the reporting period

• Applicable ✓Not Applicable

• 3.4 Profit warning and explanation of expected accumulated net loss from the beginning of the year to the end of the next reporting period or material changes over the corresponding period of previous year

• Applicable ✓Not Applicable

Name of the Company ORIENT SECURITIES COMPANY LIMITED Legal representative Pan Xinjun Date April 29, 2020

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IV. APPENDICES

4.1 Financial Statements

Consolidated Balance Sheet March 31, 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items Assets: Cash and bank balances Of which: Deposits held on behalf of customers Clearing settlement funds Of which: Settlement funds held on behalf of customers Precious metal Placements to banks and other financial institutions Advance to customers Derivative financial assets Deposits with exchanges and financial institutions Receivables Contract assets Financial assets acquired under resale agreements Assets classified as held for sale Financial investment: Transactional financial assets Debt investment Other debt investment Other equity instruments investment Long-term equity investments Investment properties Fixed assets Construction in progress Right-of-use assets Intangible assets Goodwill Deferred income tax assets Other assets Total assets

March 31, 2020 December 31, 2019 56,601,075,414.41 48,940,833,855.08 34,393,892,583.89 29,749,885,413.76 15,010,478,376.51 13,243,653,713.68 12,390,532,196.43 10,832,489,059.97 13,682,447,718.95 13,214,262,240.75 730,713,706.15 609,102,138.41 1,682,881,071.18 1,642,894,348.47 703,296,165.81 1,019,919,667.42 24,660,409,056.35 24,206,541,982.29 76,006,422,629.74 66,901,093,485.91 6,868,740,135.46 7,193,554,228.81 61,066,120,272.59 64,895,563,425.25 10,851,194,813.07 10,832,873,153.66 4,548,591,687.13 4,453,754,152.13 39,526,770.84 30,071,334.10 1,971,150,835.06 2,040,273,431.66 75,129,407.37 50,034,280.51 964,164,807.79 1,002,749,135.63 160,983,155.03 168,519,080.82 32,135,375.10 32,135,375.10 618,728,459.88 760,993,782.62 2,079,100,760.64 1,732,618,757.83 278,353,290,619.06 262,971,441,570.13

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Unit: Yuan Currency: RMB Type of audit: Unaudited

Items Liabilities: Short-term borrowings Short-term financial bills payable Due to banks and other financial institutions Transactional financial liabilities Derivative financial liabilities Financial assets sold under repurchase agreements Account payable to brokerage clients Funds payable to securities issuers Accrued staff costs Taxes payable Payables Contract liability Held-for-sale liabilities Provision Long-term borrowings Bonds payable Of which: Preferred shares Perpetual debts Lease liabilities Deferred income Deferred income tax liabilities Other liabilities Total liabilities

March 31, 2020 December 31, 2019 1,055,924,459.79 640,153,529.20 16,832,985,438.78 16,113,199,559.50 3,787,921,666.67 6,384,658,783.33 15,519,981,139.40 12,630,960,595.06 2,192,391,068.43 2,643,374,802.36 60,366,995,307.62 57,478,062,865.93 46,355,103,899.30 40,179,178,362.34 510,972,220.61 80,000,000.00 1,669,326,946.11 1,601,085,895.75 306,617,593.32 278,223,978.52 732,805,068.80 480,101,048.74 405,517,675.55 208,113,569.43 70,763,718,980.04 67,309,198,769.40 964,447,926.19 995,005,231.20 19,014,241.58 19,031,249.53 1,891,197,968.56 1,919,456,597.00 223,374,921,600.75 208,959,804,837.29

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Unit: Yuan Currency: RMB Type of audit: Unaudited

Items Equity of owners (or equity of shareholders):	Items Equity of owners (or equity of shareholders):	March 31, 2020	December 31, 2019
Share capital		6,993,655,803.00	6,993,655,803.00
Other equity instruments
Of which: Preferred shares
Perpetual debts
Capital reserve		28,254,929,991.63	28,254,929,991.63
Less: Treasury shares
Other comprehensive income		673,501,637.12	499,960,781.41
Surplus reserve		3,445,689,429.69	3,445,689,429.69
General risk reserve		8,041,649,478.62	7,997,676,253.44
Undistributed profits		7,527,777,472.20	6,773,604,053.96
Total equity attributable to the owners (or shareholders)
of the parent company		54,937,203,812.26	53,965,516,313.13
Non-controlling interests		41,165,206.05	46,120,419.71
Total equity of owners (or equity of shareholders)		54,978,369,018.31	54,011,636,732.84
Total liabilities and equity of	owners
(or equity of shareholders)		278,353,290,619.06	262,971,441,570.13
Legal representative:	Accounting chief:	Person-in-charge of the accounting department:
Pan Xinjun	Zhang Jianhui	You Wenjie

– 14 –

Balance Sheet of the Parent Company March 31, 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items Assets: Cash and bank balances Of which: Deposits held on behalf of customers Clearing settlement funds Of which: Settlement funds held on behalf of customers Precious metal Placements to banks and other financial institutions Advance to customers Derivative financial assets Deposits with exchanges and financial institutions Receivables Contract assets Financial assets acquired under resale agreements Assets classified as held for sale Financial investment: Transactional financial assets Debt investment Other debt investment Other equity instruments investment Long-term equity investments Investment properties Fixed assets Construction in progress Right-of-use assets Intangible assets Goodwill Deferred income tax assets Other assets Total assets

March 31, 2020 December 31, 2019 33,936,066,799.48 27,584,528,645.46 19,354,679,129.82 15,328,726,447.66 5,865,977,205.85 5,964,640,336.28 3,321,318,719.37 3,624,212,744.79 13,391,752,995.73 12,924,954,996.12 742,820,665.57 575,515,312.04 1,007,690,025.39 1,039,478,872.81 159,477,031.20 515,023,059.52 24,357,561,272.84 23,189,665,726.78 53,247,103,692.72 45,611,235,174.41 6,868,740,135.46 7,193,554,228.81 61,066,120,272.59 64,895,563,425.25 10,815,069,143.20 10,796,863,763.79 16,945,487,868.49 16,052,295,287.16 41,022,242.59 31,207,205.57 1,936,738,839.14 2,003,468,158.30 57,258,883.33 32,053,112.19 575,836,097.00 600,692,065.06 126,868,722.93 133,358,159.27 18,947,605.48 18,947,605.48 350,370,774.18 483,544,028.25 313,189,675.25 248,445,432.89 231,824,099,948.42 219,895,034,595.44

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Unit: Yuan Currency: RMB Type of audit: Unaudited

Items Liabilities: Short-term borrowings Short-term financial bills payable Due to banks and other financial institutions Transactional financial liabilities Derivative financial liabilities Financial assets sold under repurchase agreements Account payable to brokerage clients Funds payable to securities issuers Accrued staff costs Taxes payable Payables Contract liability Held-for-sale liabilities Provision Long-term borrowings Bonds payable Of which: Preferred shares Perpetual debts Lease liabilities Deferred income Deferred income tax liabilities Other liabilities Total liabilities

March 31, 2020 December 31, 2019 15,678,415,245.04 14,988,990,739.57 3,787,921,666.67 6,384,658,783.33 14,253,676,288.18 11,190,368,847.52 2,128,861,175.34 2,618,097,637.41 54,563,028,021.22 51,950,254,756.90 22,720,722,479.06 18,598,949,938.01 715,625,649.80 516,763,731.76 77,167,641.69 85,429,345.37 69,148,793.06 109,310,735.36 65,439,870,226.16 62,122,472,455.10 568,520,331.00 591,193,431.56 181,868,236.51 151,648,228.15 180,184,825,753.73 169,308,138,630.04

– 16 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

ems uity of owners (or equity of shareholders): Share capital Other equity instruments Of which: Preferred shares Perpetual debts Capital reserve Less: treasury shares Other comprehensive income Surplus reserve General risk reserve Undistributed profits Total equity of owners (or equity of shareholders) Total liabilities and equity of owners (or equity of shareholders)	March 31, 2020 December 31, 2019 6,993,655,803.00 6,993,655,803.00 28,157,008,370.79 28,157,008,370.79 738,436,276.11 556,061,852.46 3,445,689,429.69 3,445,689,429.69 6,667,921,526.55 6,667,921,526.55 5,636,562,788.55 4,766,558,982.91 51,639,274,194.69 50,586,895,965.40 231,824,099,948.42 219,895,034,595.44

Items

Equity of owners (or equity of shareholders):

Legal representative: Accounting chief: Pan Xinjun Zhang Jianhui

Person-in-charge of the accounting department: You Wenjie

– 17 –

Consolidated Income Statement

January – March 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items I. Total operating income Net interest income Of which: Interest income Interest expense Net fee and commission income Of which: Net fee income from brokerage business Net fee income from investment banking Net fee income from asset management business Investment gains (“-” indicating losses) Of which: Gains from investments in associates and joint ventures Income generated from the derecognition of financial assets measured at amortized cost (“-” indicating losses) Net open hedge income (“-” indicating losses) Other income Gains from changes in fair value (“-” indicating losses) Foreign exchange gains (“-” indicating losses) Other business income Gains from asset disposal (“-” indicating losses) II. Total operating expenses Business tax and surcharges Business and administrative expenses Asset impairment loss Credit impairment loss Other asset impairment loss Other business cost

The first quarter of 2020 The first quarter of 2019 3,827,315,338.54 4,067,657,141.89 198,341,063.46 203,864,711.75 1,428,944,770.49 1,532,069,437.12 1,230,603,707.03 1,328,204,725.37 1,306,620,441.43 1,081,907,265.70 533,512,280.54 373,054,490.50 205,213,600.19 283,410,201.18 551,081,431.43 387,752,703.29 1,250,981,501.56 263,993,055.55 121,458,701.06 167,636,966.63 20,939.29 3,896,148.58 -398,459,025.95 1,322,910,743.18 68,186,389.56 -10,139,091.85 1,397,806,531.81 1,204,565,910.71 -57,711.91 554,546.85 2,918,876,617.10 2,624,203,388.17 20,287,687.44 12,467,990.02 1,507,695,996.42 1,410,874,739.58 -1,583,765.09 9,561,713.04 1,392,476,698.33 1,191,298,945.53

– 18 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items III. Operating profit (“-” indicating loss) Add: Non-operating income Less: Non-operating expenses IV. Total profit (“-” indicating total loss) Less: Income tax expenses V. Net profit (“-” indicating net loss) (i) Classified based on continuing operation 1. Net profit from continuing operation (“-” indicating net loss) 2. Net profit from discontinued operation (“-” indicating net loss) (ii) Classified based on the nature of ownership 1. Net profit attributable to shareholders of the parent company (“-” indicating net loss) 2. Profit or loss attributable to non-controlling interests (“-” indicating net loss) VI. Other comprehensive income after tax, net Other comprehensive income attributable to the owners of the parent company after tax, net (i) Other comprehensive income that cannot be reclassified to profit or loss 1. Re-measurement of amount of changes in defined benefit scheme 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method 3. Changes in fair value of other equity instruments investment 4. Changes in the fair value of the Company’s own credit risk

The first quarter of 2020 The first quarter of 2019 908,438,721.44 1,443,453,753.72 114,184,623.64 131,593,912.06 3,941,368.70 1,896,289.40 1,018,681,976.38 1,573,151,376.38 210,553,065.02 295,462,331.97 808,128,911.36 1,277,689,044.41 808,128,911.36 1,277,689,044.41 813,084,162.43 1,269,514,969.30 -4,955,251.07 8,174,075.11 158,603,336.70 568,247,614.75 158,603,336.70 568,247,614.75 -194,875,222.01 407,535,885.79 -194,875,222.01 407,535,885.79

– 19 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

			The first quarter	The first quarter
Items			of 2020	of 2019
(ii) Other comprehensive income that will be reclassified to
	profit and loss		353,478,558.71	160,711,728.96
	1. Other comprehensive income that can be transferred to
	profit or loss under the equity method		-7,677,562.53	-4,150,828.76
	2. Changes in fair value of other debt investments		362,185,629.76	179,410,126.32
	3. The amount of financial assets reclassified into other
	comprehensive income
	4. Credit impairment provisions of other debt investment		-102,270.70	1,671,236.19
	5. Cash flow hedge reserve (Effective portion of hedging
	gains and losses from cash flows)
	6. Exchange differences from translation of financial
	statements denominated in foreign currencies 7. Others		-927,237.82	-16,218,804.79
Other comprehensive income after tax attributable to
	non-controlling interests, net
VII. Total comprehensive income			966,732,248.06	1,845,936,659.16
Total comprehensive income attributable to
	owners of the parent company		971,687,499.13	1,837,762,584.05
Total comprehensive income attributable to
	non-controlling interests		-4,955,251.07	8,174,075.11
VIII. Earnings per share:
(i) Basic (RMB/share)			0.12	0.18
(ii) Diluted (RMB/share)			N/A	N/A
Legal representative: Accounting chief:		Person-in-charge of the accounting department:
	Pan Xinjun Zhang Jianhui		You Wenjie

– 20 –

Income Statement of the Parent Company January – March 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items I. Total operating income Net interest income Of which: Interest income Interest expense Net fee and commission income Of which: Net fee income from brokerage business Net fee income from investment banking Net fee income from asset management business Investment gains (“-” indicating losses) Of which: Gains from investments in associates and joint ventures Income generated from the derecognition of financial assets measured at amortized cost (“-” indicating losses) Net open hedge income (“-” indicating losses) Other income Gains from changes in fair value (“-” indicating losses) Foreign exchange gains (“-” indicating losses) Other business income Gains from asset disposal (“-” indicating losses) II. Total operating expenses Business tax and surcharges Business and administrative expenses Asset impairment loss Credit impairment loss Other asset impairment loss Other business cost

The first quarter of 2020 The first quarter of 2019 1,762,378,456.69 1,640,933,352.84 204,709,742.46 212,829,542.96 1,333,466,329.25 1,387,078,341.38 1,128,756,586.79 1,174,248,798.42 527,003,404.26 417,959,848.79 437,613,887.12 316,950,557.94 116,971,850.24 105,243,770.54 1,246,615,114.56 -29,361,866.57 92,876,641.15 92,416,452.95 20,939.29 3,891,296.97 -249,448,609.87 1,035,545,923.30 29,069,151.06 -3,297,387.06 597,455.35 6,702,744.57 -59,098.10 554,546.85 834,455,373.70 798,329,262.26 15,201,090.23 9,112,623.11 819,676,473.48 775,152,279.44 -1,970,746.11 14,064,359.71 1,548,556.10

– 21 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items III. Operating profit (“-” indicating loss) Add: Non-operating income Less: Non-operating expenses IV. Total profit (“-” indicating total loss) Less: Income tax expenses V. Net profit (“-” indicating net loss) (i) Net profit from continuing operation (“-” indicating net loss) (ii) Net profit from discontinued operation (“-” indicating net loss) VI. Other comprehensive income after tax, net (I) Other comprehensive income that cannot be reclassified to profit or loss 1. Re-measurement of amount of changes in defined benefit scheme 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method 3. Changes in fair value of other equity instruments investment 4. Changes in the fair value of the Company’s own credit risk

The first quarter of 2020 The first quarter of 2019 927,923,082.99 842,604,090.58 34,404,268.21 30,062,839.00 -80,239.26 1,517,670.18 962,407,590.46 871,149,259.40 77,466,265.81 130,511,392.28 884,941,324.65 740,637,867.12 884,941,324.65 740,637,867.12 167,436,904.64 594,285,160.53 -194,962,432.01 415,495,402.23 -194,962,432.01 415,495,402.23

– 22 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

			The first quarter	The first quarter
Items			of 2020	of 2019
(II)	Other comprehensive income that will be reclassified to
	profit and loss		362,399,336.65	178,789,758.30
	1. Other comprehensive income that can be transferred to
	profit or loss under the equity method		315,940.18	-2,291,604.21
	2. Changes in fair value of other debt investments		362,185,667.17	179,410,126.32
	3. The amount of financial assets reclassified into other
	comprehensive income
	4. Credit impairment provisions of other debt investment		-102,270.70	1,671,236.19
	5. Cash flow hedge reserve (Effective portion of hedging
	gains and losses from cash flows)
	6. Exchange differences from translation of financial
	statements denominated in foreign currencies 7. Others
VII.	Total comprehensive income		1,052,378,229.29	1,334,923,027.65
VIII.	Earnings per share: (i) Basic (RMB/share) (ii) Diluted (RMB/share)
Legal representative: Accounting chief:		Person-in-charge of the accounting department:
	Pan Xinjun Zhang Jianhui		You Wenjie

– 23 –

Consolidated Statement of Cash Flows January – March 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items I. Cash flows from operating activities: Cash received from sale of commodities and rendering of services Net increase in amount due to other financial institutions Cash received for interests, fees and commissions Net increase in transactional financial liabilities Net increase in amount due to banks and other financial institutions Net increase in cash from repurchase business Net cash received from securities trading agency services Net cash received from securities underwriting services Cash received relating to other operating activities Subtotal of cash inflows from operating activities Net increase in financial assets held for transaction purposes Net increase in placements to banks and other financial institutions Net decrease in amount due to banks and other financial institutions Net increase in financial assets acquired under resale agreements Net increase in advances to customers Cash paid for interests, fees and commissions Cash paid to and paid for staff Taxes paid Cash paid relating to other operating activities Sub-total of cash outflows from operating activities Net cash from operating activities

The first quarter of 2020 The first quarter of 2019 2,193,633,760.79 1,906,567,147.02 2,672,022,528.65 4,139,003,275.07 2,333,354,777.88 4,677,553,982.17 6,305,865,748.69 3,218,230,440.94 430,972,220.61 2,862,832,929.83 1,449,911,779.96 16,798,681,966.45 15,391,266,625.16 5,720,958,266.48 824,568,803.28 2,596,737,116.66 2,209,445,416.57 460,351,121.16 1,849,855,202.60 645,992,831.96 715,866,301.37 957,837,747.18 867,512,815.43 230,444,685.77 226,522,262.20 2,748,790,550.65 2,176,969,771.44 13,361,112,319.86 8,870,740,572.89 3,437,569,646.59 6,520,526,052.27

– 24 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items II. Cash flows from investing activities: Cash received from disposal of investment Cash received from investment gains Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating units Net decrease in debt investment Net decrease in other debt investment Cash received relating to other investing activities Sub-total of cash inflows from investing activities Cash paid for investments Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Net cash paid for acquisition of subsidiaries and other operating units Net increase in other transactional financial assets Net increase in other debt investment Net increase in other equity instruments investment Cash paid for other investing activities Sub-total of cash outflows from investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from investments Of which: Cash received by subsidiaries from investments from non-controlling shareholders Cash received from borrowings Cash received from issue of bonds Cash received relating to other financing activities Sub-total of cash inflows from financing activities Cash repayment of debts Cash paid for distribution of dividends, profits or interest payment Of which: Dividends and profits paid to non-controlling interests by subsidiaries Cash paid relating to other financing activities Sub-total of cash outflows from financing activities Net cash from financing activities

The first quarter of 2020 The first quarter of 2019 226,341,743.75 28,816,283.11 766,573,738.08 735,835,815.92 324,950,767.83 159,391,695.30 4,453,469,482.08 149,492.05 1,362,850.47 5,771,485,223.79 925,406,644.80 54,852,454.97 474,163,869.67 76,380,798.09 50,481,718.34 2,250,954,374.93 317,858,624.31 503,430,778.66 238,321,904.70 208,325,639.65 2,620,509,532.69 1,554,260,630.63 3,150,975,691.10 -628,853,985.83 1,040,547,030.40 1,182,747,188.02 19,384,868,414.21 10,030,449,573.54 20,425,415,444.61 11,213,196,761.56 16,807,894,273.43 5,581,605,841.01 513,736,157.15 730,260,781.26 77,951,100.34 42,115,284.91 17,399,581,530.92 6,353,981,907.18 3,025,833,913.69 4,859,214,854.38

– 25 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Balance of cash and cash equivalents at the beginning of the period VI. Balance of cash and cash equivalents at the end of the period	The first quarter of 2020 The first quarter of 2019 30,581,853.59 -10,120,744.16 9,644,961,104.97 10,740,766,176.66 61,940,172,286.80 46,079,670,480.45 71,585,133,391.77 56,820,436,657.11

Legal representative: Accounting chief: Person-in-charge of the accounting department: Pan Xinjun Zhang Jianhui You Wenjie

– 26 –

Cash Flow Statement of the Parent Company January – March 2020

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items I. Cash flows from operating activities: Cash received from sale of commodities and rendering of services Net increase in amount due to other financial institutions Cash received for interests, fees and commissions Net increase in transactional financial liabilities Net increase in amount due to banks and other financial institutions Net increase in cash from repurchase business Net cash received from securities trading agency services Cash received relating to other operating activities Subtotal of cash inflows from operating activities Net increase in financial assets held for transaction purposes Net decrease in amount due to banks and other financial institutions Net increase in placements to banks and other financial institutions Net increase in financial assets acquired under resale agreements Net increase in advances to customers Cash paid for interests, fees and commissions Cash paid to and paid for staff Taxes paid Cash paid relating to other operating activities Sub-total of cash outflows from operating activities Net cash from operating activities

The first quarter of 2020 The first quarter of 2019 1,310,737,713.73 1,055,788,052.74 2,870,791,905.87 3,882,396,465.34 1,579,790,695.95 5,384,937,861.80 4,316,429,839.16 5,906,422,246.07 451,778,602.21 76,554,071.22 10,529,528,756.92 16,306,098,697.17 5,623,081,175.56 2,022,567,041.87 2,596,737,116.66 2,209,445,416.57 464,669,127.13 1,945,782,269.78 548,909,539.90 557,827,810.34 411,783,906.91 337,579,898.13 111,955,189.58 73,381,620.82 123,125,726.81 127,121,749.15 9,880,261,782.55 7,273,705,806.66 649,266,974.37 9,032,392,890.51

– 27 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items II. Cash flows from investing activities: Cash received from disposal of investment Cash received from investment gains Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net decrease in other debt investment Net decrease in debt investment Cash received relating to other investing activities Sub-total of cash inflows from investing activities Cash paid for investments Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Net increase in other transactional financial assets Net increase in other debt investment Net increase in other equity instruments investment Cash paid for other investing activities Sub-total of cash outflows from investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from investments Cash received from borrowings Cash received from issue of bonds Cash received relating to other financing activities Sub-total of cash inflows from financing activities Cash repayment of debts Cash paid for distribution of dividends, profits or interest payment Cash paid relating to other financing activities Sub-total of cash outflows from financing activities Net cash from financing activities

The first quarter of 2020 The first quarter of 2019 1,011,787,855.86 733,771,707.46 4,453,469,482.08 324,950,767.83 159,391,695.30 136,854.36 1,355,148.21 5,790,344,960.13 894,518,550.97 800,000,000.00 66,565,035.10 40,460,101.26 1,513,532,918.10 317,858,624.31 503,430,778.66 238,321,904.70 208,325,639.65 2,618,419,857.90 1,070,075,143.88 3,171,925,102.23 -175,556,592.91 584,400,000.00 706,215,888.02 19,384,868,414.21 10,030,449,573.54 19,969,268,414.21 10,736,665,461.56 16,787,894,273.43 5,173,405,238.96 513,522,046.15 730,122,254.89 61,450,334.07 36,807,003.95 17,362,866,653.65 5,940,334,497.80 2,606,401,760.56 4,796,330,963.76

– 28 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

		The first quarter		The first quarter
Items		of 2020		of 2019
IV. Effect of foreign exchange rate changes on cash and	cash
equivalents		20,281,752.87		-3,297,387.06
V. Net increase in cash and cash equivalents		6,447,875,590.03		13,649,869,874.30
Add: Balance of cash and cash equivalents
at the beginning of the period		33,351,673,065.35		21,747,700,505.58
VI. Balance of cash and cash equivalents at the end of the period		39,799,548,655.38		35,397,570,379.88
Legal representative: Accounting chief:	Person-in-charge of the accounting department:
Pan Xinjun Zhang Jianhui		You Wenjie

• 4.2 Adjustment made to the financial statements of the beginning of the year due to implementing the New Standards on Revenue and New Standards on Leases for the first time since 2020

□ Applicable ✓Not Applicable

• 4.3 Description of the implementation of the New Standards on Revenue and the New Standards on Leases for the first time since 2020 for retrospective adjustment of previous comparison information

• Applicable ✓Not Applicable

• 4.4 Audit Report

• Applicable ✓Not Applicable

– 29 –