DFZQ — Regulatory Filings 2018

Dec 16, 2018

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 IN RELATION TO RECEIPT OF THE NOTICE OF INTENTION NOT TO EXTEND THE JOINT VENTURE TERM BY CITIGROUP ASIA

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 Company has recently received the Notice of Intention not to Extend the Joint Venture Term (the “ Notice ”) by Citigroup Global Markets Asia Limited (the “ Citigroup Asia ”). Pursuant to the Notice, Citigroup Asia wishes not to extend the joint venture term of Citi Orient Securities Co., Ltd. (the “ Citi Orient ”) and transfer its 33.33% equity interests of Citi Orient to the Company at a price of the audited net assets value of Citi Orient as of December 31, 2018 multiplied by its capital contribution proportion in accordance with the requirements of the shareholders agreement entered into by the Company and Citigroup Asia on June 1, 2011.

The Company will deal with the above matters under the relevant legal procedures and perform the information disclosure obligations in a timely manner. Due to the changes in the market policy environment, Citigroup Asia intends to exit from Citi Orient and this matter will not have a material impact on the operation and development of Citi Orient.

The abovementioned matter is subject to the performance of decision-making procedures and relevant formalities by the Company, and investors are advised to pay attention to investment risks.

By order of the Board of Directors PAN Xinjun Chairman

Shanghai, PRC December 16, 2018

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.