DFZQ — Interim / Quarterly Report 2021

Oct 28, 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)

THE THIRD QUARTERLY REPORT FOR THE YEAR 2021

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 third quarter ended September 30, 2021, 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 Third Quarterly Report for the Year 2021 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 JIN Wenzhong Chairman

Shanghai, PRC October 28, 2021

As at the date of this announcement, the Board of Directors comprises Mr. SONG Xuefeng and Mr. JIN Wenzhong as executive Directors; Mr. YU Xuechun, Mr. LIU Wei, Mr. ZHOU Donghui, Mr. CHENG Feng, Mr. REN Zhixiang and Ms. ZHU Jing as non-executive Directors; and Mr. XU Zhiming, Mr. JIN Qinglu, Mr. WU Hong, Mr. FENG Xingdong and Mr. LUO Xinyu as independent non-executive Directors.

– 1 –

Orient Securities Company Limited

The Third Quarterly Report for the Year 2021

– 2 –

CONTENTS

IMPORTANT CONTENTS NOTICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	IMPORTANT CONTENTS NOTICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
I.	KEY FINANCIAL DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
II.	SHAREHOLDERS INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8
III.	OTHER REMINDERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
IV.	QUARTERLY FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12

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IMPORTANT CONTENTS NOTICE

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.

The Company’s third quarterly report for the year 2021 was considered and approved at the seventh meeting of the fifth session of the Board of the Company and the fifth meeting of the fifth session of the supervisory committee of the Company. No Director or supervisor has raised objection to the report.

The person-in-charge of the Company, the accounting chief and person-in-charge of the accounting department (head of the accounting department), warrant the truthfulness, accuracy and completeness of information of the financial statements set out in this quarterly report.

Whether the third quarterly financial statements are audited

□ Yes ✓No

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I. KEY FINANCIAL DATA

(i) Key accounting data and financial indicators

Unit: Yuan Currency: RMB

					Increase/
					decrease in
					the range of
					changes from the
		Increase/			beginning of the
		decrease in the			year to the end
		range of changes			of the reporting
		in this reporting		From the	period compared
		period over the		beginning of	with the same
		same period of		the year to	period of the
	This reporting	the previous		the end of the	previous year
Items	period	year (%)		reporting period	(%)
Operating income	5,563,449,818.10		-13.43	18,840,205,878.43	17.37
Net profit attributable to the shareholders
of the Company	1,620,434,831.80		6.27	4,320,794,537.25	41.62
Net profit attributable to the shareholders
of the Company after deducting
non-recurring profit or loss	1,621,433,810.56		6.51	4,250,816,560.06	43.54
Net cash flows from operating activities	19,884,788,465.99		448.56	26,079,870,858.53	71.51
Basic earnings per share (RMB/share)	0.22		4.76	0.59	37.21
Diluted earnings per share (RMB/share)	Not applicable	Not applicable		Not applicable	Not applicable
Weighted average returns on net assets (%)	2.70	Decrease	of 0.03	7.30	Increase of 1.77
		percentage points			percentage points
					Increase/decrease
					in the range of
					changes recorded
					at the end of this
					reporting period as
					compared with the
	At the	end of this	At	the end of the	end of the previous
	reporting period			previous year	year (%)
Total assets	324,229,574,145.53		291,117,441,584.43		11.37
Owner’s equity attributable to the shareholders
of the Company	63,246,031,173.79		60,202,850,867.31		5.05

Note: “This reporting period” refers to the three-month period from the beginning of this quarter to the end of this quarter, the same below.

– 5 –

(ii) Non-recurring profit or loss items and amounts

Unit: Yuan Currency: RMB

		Amounts from
		the beginning
		of the year
	Amounts for	to the end
	this reporting	of the reporting
Items	period	period	Remarks
Profit or loss on disposal of non-current assets, inclusive of	-538,714.55	-898,156.21
write-off of impairment provision for assets
Government grants (except for government grants which are	4,831,981.84	119,700,839.28	Financial support
closely related to the Company’s ordinary business and
conform with the national policies as well as continuous
entitlement to a certain standard amount or quantities)
recognized in current profit or loss
Other non-operating income and expenses except items above	-5,625,257.53	-25,603,771.42	Mainly donation
			expenditure
Other profit or loss items conforming with the definition of	18.55	105,057.93
non-recurring profit or loss
Less: Effect of income tax	-332,992.93	23,325,992.39
Total	-998,978.76	69,977,977.19

Description of the definition of non-recurring items of profit or loss as recurring items of profit or loss as set out in the Explanatory Announcement No. 1 on Disclosure of Information by Companies Offering Securities to the Public – Non-Recurring Profit or Loss (《公開發行證券的公司信息披 露解釋性公告第 1 號－非經常性損益》)

□ Applicable ✓Not Applicable

– 6 –

(iii) Changes in key accounting data and financial indicators and reasons for such changes

✓Applicable □ Not Applicable

	Percentage
Items	change (%)	Main reasons
Net profit attributable to the	41.62	Benefiting from the stable and strong
shareholders of the Company		domestic macroeconomic policies and
		the sustained economic recovery, the
		Company’s major business segments,
		s u c h a s i n v e s t m e n t m a n a g e m e n t ,
		brokerage and securities finance,
		experienced significant revenue growth;
		on the other hand, the Company’s credit
		impairment losses decreased in the first
		three quarters.
Net profit attributable to the	43.54	Mainly due to the increase in the Company’s
shareholders of the Company		net profit in the first three quarters of
after deducting non-recurring		2021.
profit or loss
Net cash flows from operating	71.51	Mainly due to the significant increase in
activities		account payable to brokerage clients and
		funds payable to securities issuers.
Basic earnings per share	37.21	Mainly due to the increase in the Company’s
		net profit in the first three quarters of
		2021.

The above is the year-on-year change data for the first three quarters of 2021. The changes for the current reporting period of 2021 are shown in the table below:

	Percentage	Main reasons for the year-on-year changes
Items	change (%)	of items from July to September
Net cash flows from operating	448.56	Mainly due to the significant increase in
activities		account payable to brokerage clients and
		funds payable to securities issuers.

– 7 –

II. SHAREHOLDERS INFORMATION

• (i) Total number of ordinary shareholders and the number of preferred shareholders whose voting rights have been restored and the top ten shareholders’ shareholdings

Units: Shares

Total number of ordinary shareholders at the end of	245,338	To tal number of preference shareholders	To tal number of preference shareholders	To tal number of preference shareholders	whose voting rights were	whose voting rights were
the reporting period		restored at the end of the reporting period (if any)					Not applicable
	Top 10	shareholders’ shareholdings
					Number of
	Nature of	Number of	Shareholding		restricted
Name of Shareholder	Shareholders	shares held	ratio (%)		shares held	Pledged,	marked or frozen
						Status of	Number of
						shares	shares
Shenergy (Group) Company Limited	State-owned legal	1,767,522,422		25.27	230,000,000	Nil	–
	person
Hong Kong Securities Clearing Company	Foreign legal person	1,026,968,730		14.68	–	Unknown	–
Nominees Limited
Shanghai Haiyan Investment Management	State-owned legal	345,486,596		4.94	–	Nil	–
Company Limited	person
Shanghai United Media Group	State-owned legal	238,826,206		3.41	–	Nil	–
	person
China Post Group Corporation	State-owned legal	178,743,236		2.56	–	Nil	–
	person
China Securities Finance Corporation Limited	Unknown	178,025,625		2.55	–	Nil	–
Zheneng Capital Holdings Limited	State-owned legal	138,770,000		1.98	–	Nil	–
(浙能資本控股有限公司)	person
Shanghai Jinqiao Export Processing Zone	Domestic	126,445,204		1.81	–	Nil	–
Development Co., Ltd.	non-state-owned
(上海金橋出口加工區開發股份有限公司)	legal person
Hong Kong Securities Clearing Company Limited	Foreign legal person	112,096,968		1.60	–	Nil	–
China Construction Bank Corporation – Guotai CSI	Others	80,741,123		1.15	–	Nil	–
All Share Securities Company Trading Index
Securities Investment Open-ended Fund

– 8 –

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 of shares	Number of shares
Shenergy (Group) Company Limited	1,537,522,422	RMB ordinary shares	1,537,522,422
Hong Kong Securities Clearing Company	1,026,968,730	Ov erseas listed	1,026,968,730
Nominees Limited		foreign shares
Shanghai Haiyan Investment Management	345,486,596	RMB ordinary shares	345,486,596
Company Limited
Shanghai United Media Group	238,826,206	RMB ordinary shares	238,826,206
China Post Group Corporation	178,743,236	RMB ordinary shares	178,743,236
China Securities Finance Corporation	178,025,625	RMB ordinary shares	178,025,625
Limited
Zheneng Capital Holdings Limited	138,770,000	RMB ordinary shares	138,770,000
(浙能資本控股有限公司)
Shanghai Jinqiao Export Processing Zone	126,445,204	RMB ordinary shares	126,445,204
Development Co., Ltd. (上海金橋出
口加工區開發股份有限公司)
Hong Kong Securities Clearing Company	112,096,968	RMB ordinary shares	112,096,968
Limited
China Construction Bank Corporation	80,741,123	RMB ordinary shares	80,741,123
– Guotai CSI All Share Securities
Company Trading Index Securities
Investment Open-ended Fund
Related party relationship or parties acting		Not applicable
in concert among above shareholders
Description of the participation of the	As of the end of the	reporting period, the number of securities
top 10 shareholders and the top 10	held in the credit securities accounts of the A-share shareholders
non-restricted shareholders in margin	of the above shareholders of the Company was nil. In addition
trading and short selling business and	to the above, the Company has not been informed of the above
refinancing business (if any)	shareholders’ participation in margin trading and short selling

As of the end of the reporting period, the number of securities held in the credit securities accounts of the A-share shareholders of the above shareholders of the Company was nil. In addition to the above, the Company has not been informed of the above shareholders’ participation in margin trading and short selling business and refinancing business.

– 9 –

III. OTHER REMINDERS

✓Applicable □ Not Applicable

(1) Matters concerning the increase and decrease of capital by the Company to its subsidiaries

In July 2021, the Company increased the registered capital of its wholly-owned subsidiary, Shanghai Orient Securities Innovation Investment Co., Ltd. ( 上海東方證券創新投資有限公 司 ), (the “ Orient Securities Innovation Investment ”), by RMB950 million and completed the registration of industrial and commercial changes. After the capital increase, the registered capital of Orient Securities Innovation Investment was changed to RMB7.2 billion. At the same time, the Company reduced the registered capital of its wholly-owned subsidiary, Shanghai Orient Securities Capital Investment Co., Ltd. ( 上海東方證券資本投資有限公司 ) (the “ Orient Securities Capital Investment ”), by RMB950 million. After the capital reduction, the registered capital of Orient Securities Capital Investment was changed to RMB3.05 billion. The capital increase and capital reduction have been considered and approved by the Company’s president’s office meeting. The purpose of the capital increase and capital reduction is to implement the regulatory reform requirements and fulfill the business development needs of the Company, while integrating the coordinated development of the business of the subsidiaries to improve the efficiency of the use of the Group’s capital. The capital increase and capital reduction will not change the shareholding structure of Orient Securities Innovation Investment and Orient Securities Capital Investment, will not result in changes in the scope of the Company’s consolidated statements and will not have a material impact on the Company’s profit or loss for the current period.

(2) Matters concerning the Company’s absorption and merger of wholly-owned subsidiaries

At the fourth meeting of the fifth session of the Board and the second extraordinary general meeting of 2021, the Company considered and approved the Resolution on the Absorption of and Merger with the Company’s Wholly-Owned Subsidiary Orient Securities Investment Banking Co., Ltd. 《關於公司吸收合併全資子公司東方證券承銷保薦有限公司的議案》( ), agreeing to the matters relating to the absorption and merger of the Company’s wholly-owned subsidiary Orient Securities Investment Banking Co., Ltd. and authorizing the management of the Company to handle all matters in relation to the absorption and merger, including but not limited to the handling of the audit, valuation (if required), approval or filing, signing of the absorption and merger agreement, transfer of assets and change of ownership as well as industrial and commercial registration, etc. involved in the absorption and merger. The absorption and merger shall be subject to approval of the China Securities Regulatory Commission (the “ CSRC ”) and other regulatory authorities before implementation.

– 10 –

(iii) Approval for issuance of corporate bonds

The Company obtained the “Approval on the Registration Application for Public Issuance of Corporate Bonds to Professional Investors of Orient Securities Company Limited” (Zhengjian Xuke [2021] No. 3091) (《關於同意東方證券股份有限公司向專業投資者公開發行公司債券 註冊的批覆》 ( 證監許可 [2021]3091 號 )) issued by the CSRC. Details of the approval are as follows:

1. The CSRC consents to the Company’s registration application for public issuance of corporate bonds with a total face value not exceeding RMB30 billion to professional investors.

2. The current issuance of corporate bonds shall be executed strictly in accordance with the offering documents filed to the Shanghai Stock Exchange.

3. The approval shall be valid for a period of 24 months from the date of approval of the registration. The Company may issue the corporate bonds by tranches within the effective period of the registration.

4. If any significant event occurs to the Company in any time since the date of approval of the registration and before the completion of the current issuance of the corporate bonds, the Company shall report the same in a timely manner and handle it in accordance with the relevant provisions.

The Company will handle relevant matters in relation to the current issuance of corporate bonds in compliance with the requirements of the relevant laws, regulations and the aforesaid approval document within the scope of authorization of the Company’s shareholders’ general meeting and fulfill its information disclosure obligation in a timely manner.

– 11 –

IV. QUARTERLY FINANCIAL STATEMENTS

(i) Type of audit opinion

• Applicable ✓Not Applicable

(ii) Financial statements

CONSOLIDATED BALANCE SHEET

September 30, 2021

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items	September 30, 2021	December 31, 2020
Assets:
Cash and bank balances	81,021,477,829.42	65,640,359,556.65
Of which: Deposits held on behalf of customers	62,375,865,980.90	48,384,423,234.76
Clearing settlement funds	27,998,651,836.89	21,516,356,646.61
Of which: Settlement funds held on behalf of customers	24,678,298,187.27	18,591,394,862.89
Placements to banks and other financial institutions	194,599,291.05
Advance to customers	24,720,850,269.89	21,171,919,414.06
Derivative financial assets	85,271,471.50	155,876,469.76
Deposits with exchanges and financial institutions	2,710,683,804.92	2,183,089,694.77
Receivables	1,757,683,091.28	874,405,553.22
Contract assets		1,741,886.80
Financial assets acquired under resale agreements	11,602,934,176.86	14,460,425,371.36
Financial investment:
Transactional financial assets	82,522,447,574.13	72,701,117,042.70
Debt investment	3,944,043,136.68	6,243,897,149.81
Other debt investment	69,771,458,844.11	62,645,974,916.84
Other equity instruments investment	5,014,343,773.08	10,936,457,571.84
Long-term equity investments	6,621,741,024.99	5,771,193,948.89
Investment properties	38,812,030.62	40,460,670.03
Fixed assets	2,042,066,134.20	2,019,601,972.64
Construction in progress	38,889,936.68	65,838,524.98
Right-of-use assets	774,040,541.38	847,354,948.02
Intangible assets	208,442,396.65	215,313,094.34
Goodwill	32,135,375.10	32,135,375.10
Deferred income tax assets	1,333,002,476.03	1,455,922,066.16
Other assets	1,795,999,130.07	2,137,999,709.85
Total assets	324,229,574,145.53	291,117,441,584.43

– 12 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

Items		September 30, 2021	December 31, 2020
Liabilities:
Short-term borrowings		539,205,200.91	579,732,185.45
Short-term financial bills payable		5,208,056,583.31	16,255,485,786.37
Due to banks and other financial institutions		6,129,922,416.64	9,670,113,871.43
Transactional financial liabilities		15,551,926,018.37	14,576,073,144.23
Derivative financial liabilities		820,409,574.06	504,956,696.48
Financial assets sold under repurchase agreements		68,216,047,344.82	52,860,883,439.73
Account payable to brokerage clients		81,431,390,138.60	66,642,671,158.50
Funds payable to securities issuers		5,744,499,907.48	346,000,000.00
Accrued staff costs		2,375,266,612.29	2,608,008,552.75
Taxes payable		659,287,667.54	782,814,613.10
Payables		1,136,539,840.38	576,584,579.01
Contract liability		72,524,310.89	404,123,622.43
Bonds payable		69,299,677,614.05	62,265,473,497.68
Of which: Preferred shares
Perpetual debts
Lease liabilities		789,170,876.70	856,910,328.86
Deferred income tax liabilities		16,102,466.31	20,179,387.19
Other liabilities		2,969,220,108.95	1,936,286,692.04
Total liabilities		260,959,246,681.30	230,886,297,555.25
Equity of owners (or equity of shareholders):
Share capital		6,993,655,803.00	6,993,655,803.00
Other equity instruments		5,000,000,000.00	5,000,000,000.00
Of which: Preferred shares
Perpetual debts		5,000,000,000.00	5,000,000,000.00
Capital reserve		28,311,403,655.40	28,311,403,655.40
Less: Treasury shares
Other comprehensive income		810,928,981.71	35,594,335.59
Surplus reserve		3,676,148,380.92	3,676,148,380.92
General risk reserve		8,908,285,552.71	8,691,097,190.12
Undistributed profits		9,545,608,800.05	7,494,951,502.28
Total equity attributable to the owners (or shareholders)
of the parent company		63,246,031,173.79	60,202,850,867.31
Non-controlling interests		24,296,290.44	28,293,161.87
Total equity of owners (or equity of shareholders)		63,270,327,464.23	60,231,144,029.18
Total liabilities and equity of owners (or	equity of
shareholders)		324,229,574,145.53	291,117,441,584.43
Person-in-charge of the		Person-in-charge of the
Company:	Accounting chief:	accounting department:
Jin Wenzhong	Zhang Jianhui		You Wenjie

– 13 –

CONSOLIDATED INCOME STATEMENT

January – September 2021

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

		First three	First three
		quarters of 2021	quarters of 2020
		(January –	(January –
Items		September)	September)
I.	Total operating income	18,840,205,878.43	16,051,491,328.23
	Net interest income	1,113,794,585.86	597,005,526.61
	Of which: Interest income	4,480,172,825.86	4,168,788,344.44
	Interest expense	3,366,378,240.00	3,571,782,817.83
	Net fee and commission income	6,894,328,199.59	4,820,248,516.50
	Of which: Net fee income from brokerage business	2,616,920,909.71	1,868,268,488.88
	Net fee income from investment banking
	business	1,205,549,264.90	1,007,474,502.31
	Net fee income from asset management
	business	2,787,721,210.42	1,776,325,028.42
	Investment gains (“-” indicating losses)	3,975,534,887.14	3,476,690,018.30
	Of which: Ga ins from investments in associates
	and joint ventures	1,089,221,613.16	728,591,530.37
	Income generated from the derecognition of
	financial assets measured at amortized cost
	(“-” indicating losses)
	Net open hedge income (“-” indicating losses)
	Other income	19,298,763.30	16,973,636.04
	Gains from changes in fair value (“-” indicating losses)	-586,651,340.00	1,155,641,268.34
	Foreign exchange gains (“-” indicating losses)	116,688,219.41	134,571,588.19
	Other business income	7,307,181,542.40	5,850,835,466.70
	Gains from asset disposal (“-” indicating losses)	31,020.73	-474,692.45
II.	Total operating expenses	13,930,728,228.00	12,615,321,810.03
	Business tax and surcharges	80,620,267.82	69,111,020.99
	Business and administrative expenses	6,540,078,954.27	5,367,650,495.80
	Credit impairment loss	255,230,033.94	1,294,743,815.10
	Other asset impairment loss
	Other business cost	7,054,798,971.97	5,883,816,478.14

– 14 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

			First three	First three
			quarters of 2021	quarters of 2020
			(January –	(January –
Items			September)	September)
III.	Operating profit (“-” indicating loss)		4,909,477,650.43	3,436,169,518.20
	Add: Non-operating income		118,527,878.58	134,011,440.55
	Less: Non-operating expenses		27,203,018.70	31,108,696.74
IV.	Total profit (“-” indicating total loss)		5,000,802,510.31	3,539,072,262.01
	Less: Income tax expenses		681,388,617.92	489,904,665.45
V.	Net profit (“-” indicating net loss)		4,319,413,892.39	3,049,167,596.56
	(i)	Classified based on continuing operation
		1. Net profit from continuing operation
		(“-” indicating net loss)	4,319,413,892.39	3,049,167,596.56
		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)	4,320,794,537.25	3,050,882,853.98
		2. Profit or loss attributable to non-controlling
		interests (“-” indicating net loss)	-1,380,644.86	-1,715,257.42
VI.	Other comprehensive income after tax, net		708,299,719.98	-486,553,752.47
	Other comprehensive income attributable to the owners
		of the parent company after tax, net	708,299,719.98	-486,553,752.47
	(i)	Other comprehensive income that cannot be
		reclassified to profit or loss	567,142,508.76	-118,567,716.82
		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	567,142,508.76	-118,567,716.82
		4. Changes in the fair value of the Company’s own
		credit risk

– 15 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

			First three	First three
			quarters of 2021	quarters of 2020
			(January –	(January –
Items			September)	September)
	(ii)	Other comprehensive income that will be reclassified
		to profit or loss	141,157,211.22	-367,986,035.65
		1. Other comprehensive income that can be
		transferred to profit or loss under the equity
		method	-8,972,160.89	-1,635,660.83
		2. Changes in fair value of other debt investments	183,633,734.24	-323,158,735.34
		3. The amount of financial assets reclassified into
		other comprehensive income
		4. Credit impairment provisions of other debt
		investment	-24,876,167.29	9,826,813.72
		5. Cash flow hedge reserve
		6. Exchange differences from translation of financial
		statements denominated in foreign currencies	-8,628,194.84	-53,018,453.20
		7. Others
	Other comprehensive income after tax attributable to
		non-controlling interests, net
VII.	Total comprehensive income		5,027,713,612.37	2,562,613,844.09
	Total comprehensive income attributable to owners of the
		parent company	5,029,094,257.23	2,564,329,101.51
	Total comprehensive income attributable to non-controlling
		interests	-1,380,644.86	-1,715,257.42
VIII.	Earnings per share:
	(i)	Basic earnings per share (RMB/share)	0.59	0.43
	(ii)	Diluted earnings per share (RMB/share)	Not applicable	Not applicable
Person-in-charge of the			Person-in-charge of the
		Company: Accounting chief:	accounting department:
	Jin Wenzhong Zhang Jianhui		You Wenjie

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CONSOLIDATED STATEMENT OF CASH FLOWS

January – September 2021

Prepared by: ORIENT SECURITIES COMPANY LIMITED

Unit: Yuan Currency: RMB Type of audit: Unaudited

		First three	First three
		quarters of 2021	quarters of 2020
		(January –	(January –
Items		September)	September)
I.	Cash flows from operating activities:
	Net decrease in financial assets held for transaction purposes		767,894,616.36
	Cash received for interests, fees and commissions	9,984,261,588.79	8,254,060,575.06
	Net increase in transactional financial liabilities	1,783,405,463.11	206,940,555.40
	Net increase in funds from repurchase business	17,891,400,824.78	7,670,156,118.90
	Net cash received from securities trading agency services	14,804,971,596.62	17,641,534,806.14
	Net cash received from securities underwriting agency
	services	5,398,499,907.48	2,877,450.00
	Cash received relating to other operating activities	10,448,675,496.93	5,897,790,125.93
	Sub-total of cash inflows from operating activities	60,311,214,877.71	40,441,254,247.79
	Net increase in financial assets held for transaction purposes	7,652,779,042.32
	Net decrease in amount due to banks and other financial
	institutions	3,734,790,745.84	3,276,739,199.99
	Net increase in advances to customers	3,596,889,408.78	5,275,373,715.28
	Cash paid for interests, fees and commissions	1,951,487,632.67	2,409,848,347.49
	Cash paid to and paid for staff	4,390,739,659.12	3,151,685,269.72
	Taxes paid	1,900,623,278.34	875,064,679.27
	Cash paid relating to other operating activities	11,004,034,252.11	10,246,651,625.67
	Sub-total of cash outflows from operating activities	34,231,344,019.18	25,235,362,837.42
	Net cash from operating activities	26,079,870,858.53	15,205,891,410.37

– 17 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

		First three	First three
		quarters of 2021	quarters of 2020
		(January –	(January –
Items		September)	September)
II.	Cash flows from investing activities:
	Cash received from disposal of investment	667,213,212.59	831,994,938.32
	Cash received from investment gains	2,958,300,844.38	2,416,942,906.68
	Net decrease in other transactional financial assets	1,546,231,341.04
	Net decrease in other debt investment		255,883,534.04
	Net decrease in other equity investment	4,780,237,193.50
	Net decrease in debt investment	2,300,315,508.01	956,553,348.15
	Cash received relating to other investing activities	225,019.20	402,209.89
	Sub-total cash inflows from investing activities	12,252,523,118.72	4,461,776,937.08
	Cash paid for investments	229,104,856.58	622,492,506.90
	Cash paid for purchase and construction of fixed assets,
	intangible assets and other long-term assets	331,183,863.42	311,936,279.49
	Net increase in other transactional financial assets		4,026,176,113.72
	Net increase in other debt investment	6,760,742,825.79
	Net increase in other equity investment		9,046,898.50
	Cash paid relating to other investing activities
	Sub-total of cash outflows from investing activities	7,321,031,545.79	4,969,651,798.61
	Net cash flows from investing activities	4,931,491,572.93	-507,874,861.53
III.	Cash flows from financing activities:
	Cash received from investments		5,000,000,000.00
	Of which: C ash received by subsidiaries from investments
	from non-controlling shareholders
	Cash received from borrowings	567,041,432.34	1,222,155,855.80
	Cash received from issue of bonds	28,459,480,895.09	64,976,939,476.25
	Cash received relating to other financing activities
	Sub-total of cash inflows from financing activities	29,026,522,327.43	71,199,095,332.05
	Cash paid for repayment of debts	33,350,152,702.21	62,915,701,080.28
	Cash paid for distribution of dividends, profits or interest
	payment	4,248,495,985.59	3,261,027,087.30
	Of which: D ividends and profits paid to non-controlling
	interests by subsidiaries	2,616,226.57	37,279,381.26
	Cash paid relating to other financing activities	273,130,989.75	263,697,173.39
	Sub-total of cash outflows from financing activities	37,871,779,677.55	66,440,425,340.97
	Net cash from financing activities	-8,845,257,350.12	4,758,669,991.08

– 18 –

Unit: Yuan Currency: RMB Type of audit: Unaudited

			First three	First three
			quarters of 2021	quarters of 2020
			(January –	(January –
Items			September)	September)
IV.	Effect of foreign exchange rate changes on cash and
	cash equivalents		-82,258,703.31	76,704,951.19
V.	Net increase in cash and cash equivalents		22,083,846,378.03	19,533,391,491.11
	Add: Ba lance of cash and	cash equivalents at the beginning
	of the period		86,853,417,188.80	61,940,172,286.80
VI.	Balance of cash and cash	equivalents at the end of the
	period		108,937,263,566.83	81,473,563,777.91
	Person-in-charge of the		Person-in-charge of the
	Company:	Accounting chief:	accounting department:
	Jin Wenzhong	Zhang Jianhui	You Wenjie

• (iii) Adjustment made to the financial statements of the beginning of the year due to implementing the New Standards on Leases for the first time since 2021

□ Applicable ✓Not Applicable

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