POSITIVE PROFIT ALERT FOR THE 2019 ANNUAL RESULTS

POSITIVE PROFIT ALERT FOR THE 2019 ANNUAL RESULTS

I. ESTIMATED RESULTS FOR THE PERIOD

(I) Period of the estimated results:

January 1, 2019 to December 31, 2019

(II) Estimated results

According to the preliminary assessment by the financial department of the Company, the net profits attributable to shareholders of the listed Company for 2019 will increase by RMB3,522,916,400 to RMB4,277,827,000, representing an increase of 70% to 85% as compared with that of last year (officially disclosed).

The net profit after extraordinary profit and loss attributable to shareholders of the listed Company will increase by RMB3,506,601,000 to RMB4,258,015,500, representing an increase of 70% to 85% as compared with that of last year (officially disclosed).

II. RESULTS FOR THE CORRESPONDING PERIOD OF THE PRIOR YEAR

(I) Net profits attributable to shareholders of the listed Company: RMB5,032,737,700; the net profit after extraordinary profit and loss attributable to shareholders of the listed Company: RMB5,009,430,000

(II) Earnings per share: RMB0.66

III. MAIN REASONS FOR IMPROVEMENT IN RESULTS FOR THE PERIOD

In 2019, reform in China's equity market has been further deepened, and the level of openness has been significantly enhanced, along with the launching of the STAR market of the Shanghai Stock Exchange and piloting the registration-based initial public offering (IPO) system. Generally, the A-share market rebounded while the major indices of the Shanghai and Shenzhen Stock Exchanges showed upward movement with active trading volumes and a significant increase in the scale of equity capital raising. The bond market experienced fluctuation intervals in overall, while the issuance size of bonds has expanded steadily. The Company seized the development opportunities brought by market reforms to further strengthen its capital strength and market influence by becoming the first issuer of global depository receipts (GDRs) under Shanghai-London Stock Connect Program. By firmly advancing the tech-empowered "two-pronged" development strategy, the revenues from the principal businesses, including wealth management business, institutional services business, investment management business and international business, recorded a year-on-year increase.

IV. ADDITIONAL INFORMATION

The above forecast is only based on preliminary reviewed and is subject to the audited financial data of the Company in the annual report for 2019 to be published in due course. The Company's shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

The Board of Directors of Huatai Securities Co., Ltd.

January 22, 2020