Huatai Securities Co., Ltd. — Capital/Financing Update 2018

Feb 13, 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.

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(A joint stock company incorporated in the People’s Republic of China with limited liability under the Chinese corporate name 華泰證券股份有限公司 and carrying on business in Hong Kong as HTSC) (Stock Code: 6886)

ANNOUNCEMENT PRELIMINARY FINANCIAL DATA FOR THE YEAR OF 2017

This announcement is made pursuant to Rule 13.09(2) of the Listing Rules and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571).

The key financial data of the Company for the year of 2017 as contained herein prepared in accordance with China Accounting Standards for Business Enterprises are preliminary financial data which have not been audited by an accounting firm. The final data will be disclosed in the Company’s 2017 annual report. Shareholders of the Company and potential investors are hereby reminded of the investment risks that may result therefrom.

• I. Key Financial Data and Indicators for 2017 (Consolidated Statement)

		Unit: in RMB ten thousand	Unit: in RMB ten thousand
	From 1	From 1
	January 2017	January 2016
	to 31 December	to 31 December
Items	2017	2016	Change
Total operating income	2,108,483.72	1,691,701.94	24.64%
Operating profit	1,090,375.56	839,795.08	29.84%
Total profit	1,169,181.64	859,342.80	36.06%
Net profit attributable to
shareholders of the listed
company	935,380.57	627,061.15	49.17%

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	From 1	From 1
	January 2017	January 2016
	to 31 December	to 31 December
Items	2017	2016	Change
Net profit after extraordinary profit
and loss attributable to
shareholders of the listed
company	609,559.37	608,378.09	0.19%
Basic earnings per share (RMB)	1.31	0.88	48.86%
Weighted average return on net			Increase by 3.02
assets (%)	10.75 %	7.73 %	percentage points
	As of 31	As of 31
Items	December 2017	December 2016	Change
Total assets
Equity attributable to shareholders	38,213,988.02	40,145,039.76	-4.81%
of
the listed company	8,763,948.73	8,435,745.64	3.89%
Share capital	716,276.88	716,276.88	—
Net assets per share attributable
to shareholders of the listed	12.24	11.78	3.90%
company (RMB)

II. Explanations on the Operating Results and Financial Conditions

In 2017, the revenue of the Company amounted to RMB21.085 billion, representing an increase of 24.64% as compared to 2016; net profit attributable to the shareholders of the listed company amounted to RMB9.354 billion, representing an increase of 49.17% as compared to 2016.

In 2017, the total profit, net profit attributable to the shareholders of the listed company and basic earnings per share of the Company increased by over 30% as compared to 2016, mainly due to the substantial change in non-operating profit and loss as a result of the change in accounting treatment of equity investment in Bank of Jiangsu Co., Ltd. made by the Company, which resulted in an expected increase in the net profit of the Company in 2017 of approximately RMB 2.153 billion. For details, please refer to the Announcement on Changes to Accounting Treatment of Equity Investment in Bank of Jiangsu disclosed by the Company in China Securities Journal(《中國證券報》), Shanghai Securities News (《上海證券報》), Securities Times 《證券時報》( ), Securities Daily 《證券日( 報》) and the website of the Shanghai Stock Exchange (www.sse.com.cn) (Lin

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No. 2017-052) on December 30, 2017, and the Announcement on Changes to Accounting Treatment of Equity Investment in Bank of Jiangsu disclosed by the Company on the websites of the Hong Kong Stock Exchange (http://www.hkexnews.hk) and the Company (http://www.htsc.com.cn) on December 29, 2017.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

DEFINITIONS

In this announcement, the following expressions have the meanings set out below unless the context otherwise requires.

“Company”

a joint stock company incorporated in the PRC with limited liability under the corporate name 華泰證券股份 有限公司 (Huatai Securities Co., Ltd.), converted from our predecessor 華泰證券有限責任公司 (Huatai Securities Limited Liability Company) on December 7, 2007, carrying on business in Hong Kong as “HTSC”, and was registered as a registered non-Hong Kong company under Part 16 of the Companies Ordinance under the Chinese approved name of “華泰六八八六股 份有限公司” and English name of “Huatai Securities Co., Ltd.”; the H Shares of which were listed on the main board of the Hong Kong Stock Exchange on June 1, 2015 (Stock Code: 6886) and the A Shares of which were listed on the Shanghai Stock Exchange on February 26, 2010 (Stock Code: 601688), and except where the content otherwise requires, including its predecessors

“Hong Kong Stock Exchange”

The Stock Exchange of Hong Kong Limited

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“Listing Rules”

the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

“%”

percentage

By order of the Board of Directors of the Company Zhou Yi Chairman

Jiangsu, PRC, February 13, 2018

As of the date of this announcement, the Board of Directors comprises Mr. ZHOU Yi as an executive Director; Ms. PU Baoying, Mr. GAO Xu, Mr. CHEN Ning, Mr. XU Feng, Mr. XU Qing and Mr. ZHOU Yong as non-executive Directors; and Mr. CHEN Chuanming, Mr. LIU Hongzhong, Mr. LEE Chi Ming, Mr. YANG Xiongsheng and Ms. LIU Yan as independent non-executive Directors.

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