![]() 1 ( GDR under the Symbol: HTSC ) RESULTS ANNOUNCEMENT FOR THE YEAR ENDED DECEMBER 31, 2024 The Board hereby announces the audited annual results of the Company and its subsidiaries for the year ended December 31, 2024. This announcement contains the full text of the annual results announcement of the Company for 2024, which is in compliance with the requirements of the Hong Kong Listing Rules for the information set out in the preliminary announcement of annual results. PUBLISHMENT OF THE ANNUAL RESULTS ANNOUNCEMENT AND THE ANNUAL REPORT DEFINITIONS Unless the context otherwise requires, capitalized terms used in this announcement shall have the same meanings as those defined in the section headed “Definitions” in this announcement. Huatai Securities Co., Ltd. March 28, 2025 This 2024 annual results announcement of the Company will be available on the website of London Stock Exchange (www.londonstockexchange.com), the website of National Storage Mechanism (data.fca.org.uk/#/nsm/nationalstoragemechanism), and the website of the Company (www.htsc. com.cn), respectively. The annual report of the Company for 2024 will be available on the website of London Stock Exchange (www.londonstockexchange.com), the website of the National Storage Mechanism (data.fca.org.uk/#/nsm/nationalstoragemechanism) and the website of the Company in due course on or before April 30, 2025. ![]() 2 CONTENTS Important Notice ....................................................... 3 Definitions ........................................................... 6 CEO’s Letter .......................................................... 11 Company Profile and Key Financial Indicators ................................ 14 Management Discussion and Analysis and Report of the Board ................... 26 Corporate Governance ................................................... 121 Environmental and Social Responsibilities ................................... 227 Major Events .......................................................... 246 Changes in Shares and Shareholders ........................................ 264 Bonds ............................................................... 280 Index of Documents for Inspection ......................................... 318 Information Disclosure of Securities Companies ............................... 319 Appendix I Main Business Qualifications ................................... 320 Appendix II List of Branch Offices and Securities Branches .................... 325 Appendix III Other Information .......................................... 360 Appendix IV Information Disclosures Index ................................ 361 Financial Report ![]() 3 IMPORTANT NOTICE The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior management of the Company undertake that the information in this annual report is true, accurate and complete and contains no false record, misleading statement or material omission, and assume individual and joint legal liabilities to the information in this report. This report was considered and approved at the fifteenth meeting of the sixth session of the Board of the Company. Directors absent from the meeting Position of absent Director Name of absent Director Reason for absence Name of proxy Director Chen Zhongyang Business engagement Ke Xiang Director Liu Changchun Business engagement Ke Xiang Independent Director Wang Bing Business engagement Wang Quansheng None of the Directors and Supervisors had objections towards this report. The annual financial report prepared in accordance with the CASBE and the IFRS was audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu, respectively, which issued a standard unqualified audit report to the Company. Zhang Wei, the person in charge of the Company, Jiao Xiaoning, the person in charge of accounting, and Zhang Xiaodi, the officer in charge of the accounting office of the Company (head of accounting department), hereby warrant and guarantee that the financial report contained in the annual report is true, accurate and complete. The profit distribution proposal of the Company for the Reporting Period which has been considered and approved by the Board is as follows: the Company will distribute cash dividend of RMB0.37 (tax inclusive) per Share. The proposal is subject to approval at the general meeting of the Company. In addition, the Company has distributed the 2024 interim cash dividend of RMB0.15 (tax inclusive) per Share in October 2024. The total cash dividend proposed to be distributed for the Reporting Period is RMB0.52 (tax inclusive) per Share. ![]() 4 Forward-looking statements including future plans and development strategies involved in this annual report do not constitute the Company’s substantive commitments to investors. The investors are advised to pay attention to investment risks. There is no non-operating misappropriation of funds of the Company by any controlling shareholders and their related parties during the Reporting Period. The Company has not provided any external guarantees in violation of the stipulated decision-making procedures during the Reporting Period. During the Reporting Period, there exists no such circumstance that more than half of the Directors could not guarantee the authenticity, accuracy and integrity of the annual report disclosed by the Company. The report is prepared by the Company in both Chinese and English. In the event of any inconsistency, the Chinese version shall prevail. ![]() 5 Warning on Major Risks Domestic and external macroeconomy and monetary policies, laws and regulations on financial and securities industries, changing trends in real economy and financial industries and other factors may all have an impact on the Company’s business. Meanwhile, like other companies in the securities industry, inherent risks in the securities market such as market volatility and market liquidity may also affect the Company’s business. Main risks in business operation faced by the Company include: policy risks arising from national macro-control measures, changes in laws, regulations, relevant regulatory policies and transaction rules in capital market and securities industry, which will adversely influence the business of securities companies; compliance risks arising from business management or professional activities of the Company or its employees violating laws, regulations or codes, which cause the Company bearing legal responsibility, being subject to regulatory measures and disciplinary sanctions, suffering from property or business reputation loss; legal risks arising from the Company’s failure to abide by provisions and requirements of laws and regulations, which expose the Company to litigations, compensation and fines and suffer from loss; market risks arising from fluctuations in risk factors, including stock prices, interest rates, exchange rates and commodities, which make the Company suffer from loss in assets; credit risks arising from the default of financiers, issuers or counterparties in financing, investment, trading and other businesses, which make the Company suffer from loss; liquidity risks arising from the Company’s inability to obtain sufficient funds at a reasonable cost in time to pay matured debts, fulfil other payment obligations and satisfy the capital needs for normal business; information technology risks caused by the failure of the Company’s network and information system to ensure the stable, efficient and safe operation of transaction and business management in terms of business realization, timely response, solving capacity and network and data security, resulting from service capability abnormality or data damage and leakage out of internal or external reasons, which make the Company suffer from loss; operational risks arising from loss-causing incomplete or problematic internal procedures, personnel, information technology systems and external incidents; reputational risk of negative comments on the Company by investors, issuers, regulatory authorities, disciplinary organizations, the public and the media arising from the Company’s behaviors or external events, and its employees’ violation of integrity rules, professional ethics, business norms, and industrial rules and regulations, which may damage the brand value, hinder the normal operation, and even undermine the market and social stability; money laundering risks arising from the utilization of the Company’s products or services by criminals to engage in money laundering, terrorist financing and other activities which lead to negative effects on the Company’s reputation, compliance, operation and other aspects; model risks that cause adverse consequence or loss to the Company’s businesses resulting from incorrect or inappropriate model design, development or use; integrity risks arising from abuse of official power for personal gain by the employees of the Company, which may cause harm or negative impact to the Company. Besides, with the advancement of the Company’s internationalization strategy, the Company’s business expands into the United States, the United Kingdom, Singapore, Vietnam, Japan, Hong Kong and other countries and regions, and the Company is exposed to more complex market environment and regulatory requirements. ![]() 6 DEFINITIONS In this report, unless the context otherwise requires, the following terms and expressions have the meanings set forth below: DEFINITIONS OF CAPITALIZED TERMS AND EXPRESSIONS A Share(s) domestic share(s) in the share capital of the Company with nominal value of RMB1.00 each, which are listed on the Shanghai Stock Exchange and traded in RMB APP Application Articles of Association the articles of association of the Company, as amended, supplemented or otherwise modified from time to time Bank of Jiangsu Bank of Jiangsu Co., Ltd. ( 江蘇銀行股份有限公司 ) Beijing Stock Exchange the Beijing Stock Exchange ( 北京證券交易所 ) Board or Board of Directors the board of Directors of the Company CAGR compound annual growth rate CASBE the China Accounting Standards for Business Enterprises ( 中國企 業會計準則 ) China or the PRC the People’s Republic of China China Southern Asset Management China Southern Asset Management Co., Ltd. ( 南方基金管理股份 有限公司 ) Communications Holding Jiangsu Communications Holding Co., Ltd. ( 江蘇交通控股有限 公司 ) Company Law Company Law of the People’s Republic of China ( 《中華人民共和 國公司法》 ), as amended from time to time ![]() 7 CSRC the China Securities Regulatory Commission ( 中國證券監督管理 委員會 ) Director(s) director(s) of the Company FICC fixed income, currency and commodity Futures IB Business a business activity in which securities firms, as commissioned by futures companies, introduce clients to participate in futures transactions of futures companies and provide other related services GDR global depository receipt Govtor Capital Govtor Capital Group Co., Ltd. ( 江蘇高科技投資集團有限公司 ) Group, Our Group, we or us the Company and its subsidiaries, and their respective predecessors Guoxin Group Jiangsu Guoxin Investment Group Limited ( 江蘇省國信集團有 限公司 , formerly known as Jiangsu Guoxin Asset Management Group Limited ( 江蘇省國信資產管理集團有限公司 )) H Share(s) foreign share(s) in the share capital of the Company with nominal value of RMB1.00 each, which are listed on the Hong Kong Stock Exchange and traded in HK dollars HKEX Hong Kong Exchanges and Clearing Limited ( 香港交易及結算所 有限公司 ) HK$, HKD or HK dollars the lawful currency of Hong Kong Hong Kong the Hong Kong Special Administrative Region of the PRC Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited ( 香港聯合交易所有 限公司 ) ![]() 8 HTSC, Huatai Securities, our Company, Company or Parent 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 have been listed on the Main Board of the Hong Kong Stock Exchange since June 1, 2015 (Stock Code: 6886); the A Shares of which have been listed on the SSE since February 26, 2010 (Stock Code: 601688); and the global depository receipts of which have been listed on the London Stock Exchange plc since June 2019 (Symbol: HTSC), unless the context otherwise requires, including its predecessor Huatai Asset Management Huatai Securities (Shanghai) Asset Management Co., Ltd. ( 華泰 證券 ( 上海 ) 資產管理有限公司 ), a wholly-owned subsidiary of Huatai Securities Huatai Financial Holdings (Hong Kong) Huatai Financial Holdings (Hong Kong) Limited ( 華泰金融 控股 ( 香港 ) 有限公司 ), a wholly-owned subsidiary of Huatai International Huatai Foundation Jiangsu Huatai Foundation ( 江蘇省華泰公益基金會 ) Huatai Futures Huatai Futures Co., Ltd. ( 華泰期貨有限公司 ), a wholly-owned subsidiary of Huatai Securities Huatai Innovative Investment Huatai Innovative Investment Co., Ltd. ( 華泰創新投資有限公司 ), a wholly-owned subsidiary of Huatai Securities Huatai International Huatai International Financial Holdings Company Limited ( 華泰 國際金融控股有限公司 ), a wholly-owned subsidiary of Huatai Securities Huatai-PineBridge Huatai-PineBridge Fund Management Co., Ltd. ( 華泰柏瑞基金管 理有限公司 ) Huatai Purple Gold Investment Huatai Purple Gold Investment Co., Ltd. ( 華泰紫金投資有限責任 公司 ), a wholly-owned subsidiary of Huatai Securities Huatai Securities (USA) Huatai Securities (USA), Inc. ( 華泰證券 ( 美國 ) 有限公司 ), a wholly-owned subsidiary of Huatai International Huatai United Securities Huatai United Securities Co., Ltd. ( 華泰聯合證券有限責任公司 ), a wholly-owned subsidiary of Huatai Securities ![]() 9 IFRS(s) the International Financial Reporting Standard(s) IPO(s) the initial public offering(s) IT information technology Jiangsu Equity Exchange Jiangsu Equity Exchange Co., Ltd. ( 江蘇股權交易中心有限責 任公司 ), a holding subsidiary of Huatai Securities, changed to a participating subsidiary of Huatai Securities after the Reporting Period Jiangsu SASAC State-owned Assets Supervision and Administration Commission of Jiangsu Provincial Government ( 江蘇省政府國有資產監督管 理委員會 ) Jiangsu Securities Regulatory Bureau Jiangsu Securities Regulatory Bureau of the CSRC ( 中國證監會 江蘇監管局 ) Listing Rules or Hong Kong Listing Rules the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (as amended, supplemented or otherwise modified from time to time) London Stock Exchange or LSE the London Stock Exchange plc ( 倫敦證券交易所 ) Model Code the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Hong Kong Listing Rules MSCI Morgan Stanley Capital International Index NEEQ the National Equities Exchange and Quotations for small and medium-sized enterprises OTC over-the-counter PBOC the People’s Bank of China QFII qualified foreign institutional investor Reporting Period the year ended December 31, 2024 Securities Law Securities Law of the People’s Republic of China ( 《中華人民共 和國證券法》 ), as amended from time to time ![]() 10 SFO the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended, supplemented or otherwise modified from time to time SFC the Securities and Futures Commission of Hong Kong ( 香港證券 及期貨事務監察委員會 ) Shanghai Brilliance Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. ( 上海新世紀資信評估投資服務有限公司 ) Shanghai Clearing House the Interbank Market Clearing House Co., Ltd. ( 銀行間市場清算 所股份有限公司 ) Shanghai Stock Exchange or SSE the Shanghai Stock Exchange ( 上海證券交易所 ) Shenzhen Stock Exchange the Shenzhen Stock Exchange ( 深圳證券交易所 ) Singapore Subsidiary Huatai Securities (Singapore) Pte. Limited, a wholly-owned subsidiary of Huatai International STAR Market science and technology innovation board of SSE Supervisor(s) supervisor(s) of the Company Supervisory Committee the supervisory committee of the Company USD or US dollar the lawful currency of the United States of America VAR value at risk Wind Information Wind Information Co., Ltd. ( 萬得信息技術股份有限公司 ), a service provider of financial data, information and software in Mainland China % per cent. In the 2024 Annual Report, any discrepancies between the total shown and the sum of the amounts listed are due to rounding; and any discrepancies in the change percentages of an item are due to the difference of currency unit of the item. ![]() 11 CEO’S LETTER Dear Shareholders: Where ambition guides, even vast oceans can be traversed. This past year has seen the incubation and development of new quality productive forces ( 新質生產力 ), particularly in artificial intelligence, which has been remarkable. Building on advancements in PC and internet technologies, we now witness the immense potential of disruptive technologies to enhance social productivity and transform production organization. In this era of global competition, Chinese enterprises are at the forefront of technological transformation, instilling strong confidence and momentum into China’s economy and driving a global revaluation of Chinese assets. Amid the surge of new quality productive forces, the Company prioritizes strategic emerging industries and future industries such as artificial intelligence, high-end manufacturing, biomedicine, and green energy, supporting innovative enterprises throughout their lifecycle, creating a seamless connection between technology, industry, and finance. To meet the distinct needs of increasingly sophisticated institutional clients, the Company leverages in-depth insights to integrate resources across the entire business chain. The Company enhances its integrated customer service and platform operation systems, providing research, trading, and product services tailored to client requirements. In 2024, the Company’s market competitiveness in serving key institutional client groups was consistently strengthened. Our rankings for serving top mutual fund and insurance clients have continued to improve, and our market-making and comprehensive derivatives services led the industry. For the new generation of individual clients, the Company has adopted a buyer-side mindset, transitioning from product sales to asset allocation and trading services. The Company has established professional service capabilities driven by a content platform, resulting in expanded clients and asset scales. The AUM of equity funds, non-money market funds, and equity index funds remain at the top of the securities industry. On the path of innovation and transformation, the Company’s overall strength has strengthened, with its asset scale and profitability firmly ranking among the top in the sector. As of the end of 2024, total assets of the Group reached RMB814,270 million, and total equity attributable to the shareholders of the Company was RMB191,674 million. In 2024, the Group recorded total revenue, other income and gains of RMB54,285 million, and profit for the year attributable to the shareholders of the Company of RMB15,351 million. The MSCI ESG rating has risen to AAA, the highest rating within the global investment banking sector. Seizing new market opportunities stemming from global value chain restructuring. The significant changes in the global industries and economy bring both competition and uncertainties, yet they also present ample market opportunities for outstanding Chinese enterprises. Emerging industries, such as high-end manufacturing, TMT (media and telecommunications), and new energy, continue to strengthen their positions in the global value chain. Global expansion has become the inherent development logic of advanced manufacturing industry, with leading enterprises in niche sectors emerging as prominent representatives of Chinese manufacturing. ![]() 12 Since the listing of H Shares in 2015, the Company has deeply expanded its international business layout, gradually developing a global value chain system that covers and interconnects Mainland China, Hong Kong, Singapore, the US, the UK, and other markets. The Company has also actively expanded into mature markets such as Japan and emerging markets in Southeast Asia and the Middle East, building an integrated comprehensive financial service system. Over the past decade, the Company has supported the global capital operations of enterprises, focusing on key sectors such as semiconductors, artificial intelligence, autonomous driving, and consumer industries, which has resulted in several star projects listed on the Hong Kong and US stock markets. The Company has served institutional clients in global investment and trading, maintaining a leading market position in key business areas such as equity derivatives and FICC (fixed income, currency and commodities). Additionally, the Company has served wealth clients in global asset allocation, launched the “Cross-boundary Wealth Management Connect” ( 跨境理財 通 ) business as one of the first pilot securities firms, and continuously optimized and iterated the “ZhangLe Global” ( 漲樂全球通 ) platform to enhance the client experience. Enhancing integrated financial services capabilities to support client growth. For the Company, internationalization means truly engaging in high-level global competition. By effectively integrating resources across the entire business chain, including investment banking, research, trading, brokerage, and wealth management, the Company has accelerated the expansion of its client service network, continuously covering high-quality assets, enhancing product creation capabilities, and providing clients with one-stop cross-border comprehensive financial solutions. To efficiently link assets, clients, and products, the Company is concurrently accelerating the development of a unified middle and back-office support system, establishing an integrated compliance and risk-control system for the global market, and optimizing the development and training mechanism for an international talent team. The Company places particular emphasis on leveraging its long-accumulated technological strength to construct a global technology architecture and platform system. In 2024, the Company’s self-developed global trading platform was officially launched, connecting international financial hubs like Hong Kong, New York, London, and Singapore. This platform offers customers comprehensive financial asset trading services for stocks, bonds, funds, structured products, and financial derivatives. In the future, the Company will continue to enhance the global deployment of fundamental capabilities in areas such as trading, clearing and settlement, and risk control. Equipped with genuine global capabilities, it will serve customers around the world, ensuring that the “One Huatai” service can promptly meet customer needs anytime and anywhere. Reshaping the AI-driven financial paradigm and exploring new development horizons with clients. The historic breakthrough of large language models has ushered in the era of artificial intelligence. The advent of explosive AI + vertical-category application scenarios is imminent, and competition across applications, access points, computing power, and cloud services is intensifying. For the financial industry, upgrading business scenarios is just the beginning. In the future, we must embrace the reshaping of the service paradigm. By strengthening the fundamental capabilities of large-scale AI models, the Company is actively exploring the potential to transform business scenarios with AI-based thinking and technology. Currently, the Company has launched a large-model platform system that integrates heterogeneous computing, operation management, and application development. Significant progress has been made in typical scenarios like investment research, investment advisory, and investment banking. Leveraging intelligent tools, the Company has enhanced its customer service capabilities and is dedicated to developing next-generation intelligent applications for the clients of the securities industry. ![]() 13 The Company adopts a multi-dimensional “capital + resources” approach to establish a fintech ecosystem. Through strategic investments, it provides capital support to innovative enterprises, accelerating the incubation and growth of high-quality fintech companies. By sharing resources, it opens up Huatai’s business scenarios, enhances the capabilities of ecosystem partners, and collaborates to facilitate the implementation of emerging technologies. This, in turn, generates greater value for customers and the industry through the power of the ecosystem. The era of artificial intelligence is one of human-machine symbiosis and ecosystem co-creation. Only by maintaining an open-minded stance can we overcome cognitive limitations and broaden our development horizons. Each technological wave ushers in a new era of industrial transformation. Technological advancements bring both challenges and opportunities. Huatai Securities has thrived amidst continuous transformation, confronting challenges and growing stronger with each encounter. The Company has evolved alongside outstanding Chinese enterprises and a robust Chinese economy. Regardless of global changes or market fluctuations, Huatai Securities consistently adheres to a customer-centered philosophy, continuously refines its core digital transformation capabilities, and steadfastly pursues globalization. Guided by innovation, we will continue to be the torchbearer of profound value and the creator of long-term value in the grand innovation propelled by new technologies. We will accompany our clients into an even more exciting future and contribute the strength of Huatai to the magnificent journey of China’s economic transformation. CEO Zhou Yi March 28, 2025 ![]() 14 COMPANY PROFILE AND KEY FINANCIAL INDICATORS I. COMPANY INFORMATION Chinese name of the Company 華泰證券股份有限公司 Abbreviation of Chinese name of the Company 華泰證券 English name of the Company HUATAI SECURITIES CO., LTD. Abbreviation of English name of the Company HTSC Legal representative of the Company Zhang Wei Chief Executive Officer and chairman of the Executive Committee of the Company Zhou Yi Authorized representatives of the Company Zhou Yi, Zhang Hui Registered capital and net capital of the Company Unit: Yuan Currency: RMB As at the end of the Reporting Period As at the end of the previous year Registered capital 9,027,302,281.00 9,074,663,335.00 Net capital 94,142,061,443.95 94,076,764,232.03 Qualifications of each business line of the Company According to the business license issued by Jiangsu Provincial Market Regulation Administration, the business scope of the Company includes: licensed items: securities business; securities investment consultancies; sales of public offering securities investment funds; custody of securities investment fund (Projects that need to be approved by law shall be carried out upon approval by relevant authorities, and the specific business projects are subject to the approval results) general items: providing intermediary referrals by securities company for futures companies (Except for projects that need to be approved by law, business activities can be conducted independently with the business license in accordance with the laws) Please refer to “Appendix I. Main Business Qualifications” in this report for the main business qualifications of the Company. ![]() 15 II. CONTACT Secretary of the Board Name Zhang Hui Address 11/F, Building 1, No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC Tel. 025-83387272, 83387780, 83389157 Fax 025-83387784 Email zhanghui@htsc.com Joint company secretary Joint company secretary Name Zhang Hui Kwong Yin Ping Yvonne Address 11/F, Building 1, No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC 40th Floor, Dah Sing Financial Centre, No. 248 Queen’s Road East, Wanchai, Hong Kong, the PRC III. BASIC INFORMATION Registered address of the Company No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC Historical changes in registered address of the Company In July 2015, the Company has completed the change in business registration, and its registered address was changed from “No. 90 East Zhongshan Road, Nanjing, Jiangsu Province, the PRC” to “No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC” Office address of the Company No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC Postal code of office address of the Company 210019 Principal place of business in Hong Kong 62/F, The Center, 99 Queen’s Road Central, Hong Kong, the PRC Company website https://www.htsc.com.cn Email boardoffice@htsc.com Main exchange 025-83389999 Customer service hotline 95597 or 4008895597 Company fax 025-83387784 Business License Unified Social Credit Code 91320000704041011J Index of changes during the Reporting Period No change during the Reporting Period ![]() 16 IV. INFORMATION DISCLOSURE AND LOCATION FOR INSPECTION OF DOCUMENTS Names and websites of newspapers for disclosure of annual report of the Company China Securities Journal (https://www.cs.com.cn), Shanghai Securities News (https://www.cnstock.com), Securities Times (https://www.stcn.com), Securities Daily (http://www.zqrb.cn) Websites of the stock exchanges for disclosure of annual report of the Company Shanghai Stock Exchange (https://www.sse.com.cn), Hong Kong Stock Exchange (https://www.hkexnews.hk), London Stock Exchange (https://www.londonstockexchange.com) Location for inspection of annual report of the Company (A Share) No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC Location for inspection of annual report of the Company (H Share) No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, the PRC; 62/F, The Center, 99 Queen’s Road Central, Hong Kong, the PRC Index of changes during the Reporting Period No change during the Reporting Period V. SHARES/DEPOSITORY RECEIPTS OF THE COMPANY Type of shares/ depository receipts Stock exchange for listing Stock name Stock code A Share Shanghai Stock Exchange 華泰證券 601688 H Share Hong Kong Stock Exchange HTSC 6886 GDR London Stock Exchange Huatai Securities Co., Ltd. HTSC The Company did not change the stock name. VI. OTHER INFORMATION OF THE COMPANY (I) Historical development of the Company, mainly including the reorganization and capital increases in the previous years The predecessor of the Company was Jiangsu Securities Company ( 江蘇省證券公司 ), which was established in December 1990 as approved by the headquarters of the PBOC, obtained the business license on April 9, 1991, and officially opened for business on May 26, 1991. In 1994, the Economic Reform Commission of Jiangsu Province approved the conversion of the Company to be a directional stock raising company. In June 1997, the Company changed its name to “ 江蘇證券有限責任公司 ” (Jiangsu Securities Co., Ltd.). In 1999, as considered and approved at the general meeting of the Company and approved by the CSRC on December 9, 1999, the Company changed its name to “ 華泰證券有限責任公司 ” (Huatai Securities Limited Liability Company). In 2007, as considered and approved at the general meeting of the Company and approved by the CSRC on November 29, 2007, the Company was converted into “ 華泰證券 股份有限公司 ” (Huatai Securities Co., Ltd.) in its entirety. On December 7, 2007, the Company completed the business registration for such changes. In July 2009, the Company acquired Xintai Securities Co., Ltd. ( 信泰證券有限責任公司 ). In February 2010, the Company was successfully listed on the Shanghai Stock Exchange. In June 2015, the Company was listed on the Main Board of the Hong Kong Stock Exchange. In June 2019, the GDR issued by the Company was listed and traded on the Main Market of the London Stock Exchange. ![]() 17 Major capital changes of the Company: When it was established on April 9, 1991, the registered capital of the Company was RMB10,000,000. The registered capital of the Company increased to RMB202,000,000 in June 1994. The registered capital of the Company increased to RMB404,000,000 in June 1997. The registered capital of the Company increased to RMB828,000,000 in May 1998. The registered capital of the Company increased to RMB850,320,000 in December 1999. The registered capital of the Company increased to RMB2,200,000,000 in April 2001. The registered capital of the Company increased to RMB4,500,000,000 in November 2007. The registered capital of the Company increased to RMB4,815,438,725 on July 30, 2009. In February 2010, the Company completed its initial public offering of 784,561,275 RMB-denominated ordinary shares (A Shares) on the Shanghai Stock Exchange, after which the Company’s registered capital was RMB5,600,000,000. In June 2015, the Company completed its listing on the Main Board of the Hong Kong Stock Exchange and commenced trading. After the exercise of the over-allotment option, the Company issued 1,562,768,800 H Shares in total, and the total share capital of the Company changed to 7,162,768,800 shares. Due to the issuance and listing of H Shares, the relevant state-owned shareholders transferred 156,276,880 state-owned shares (A Shares) of the Company held by them to the National Council for Social Security Fund of the PRC in the form of H Shares, on the basis of 10% of the number of H Shares issued this time. The changes in share capital structure of the Company were as follows: 5,443,723,120 A Shares, which accounted for 76.00% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 24.00% of the total number of shares. In August 2018, the Company completed the non-public issuance of 1,088,731,200 RMB-denominated ordinary shares (A Shares) by way of “Non-Public Issuance to Specific Investors”, after which the Company’s registered capital was RMB8,251,500,000. The changes in share capital structure of the Company were as follows: 6,532,454,320 A Shares, which accounted for 79.17% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 20.83% of the total number of shares. In June 2019, the GDR issued by the Company was listed and traded on the Main Market of the London Stock Exchange. After the exercise of the over-allotment option, the Company issued 82,515,000 GDR in total, representing the underlying securities of 825,150,000 A Shares, after which the Company’s registered capital was RMB9,076,650,000. The changes in share capital structure of the Company were as follows: 7,357,604,320 A Shares, which accounted for 81.06% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of shares. ![]() 18 In September 2022, the Company completed the repurchase and cancellation of 1,060,973 restricted A Shares, after which the Company’s registered capital was RMB9,075,589,027. The changes in share capital structure of the Company were as follows: 7,356,543,347 A Shares, which accounted for 81.06% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of shares. In September 2023, the Company completed the repurchase and cancellation of 925,692 restricted A Shares, after which the Company’s registered capital was RMB9,074,663,335. The changes in share capital structure of the Company were as follows: 7,355,617,655 A Shares, which accounted for 81.06% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 18.94% of the total number of shares. In January 2024, the Company completed the repurchase and cancellation of 45,278,495 restricted A Shares, after which the Company’s registered capital was RMB9,029,384,840. The changes in share capital structure of the Company were as follows: 7,310,339,160 A Shares, which accounted for 80.96% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 19.04% of the total number of shares. In September 2024, the Company completed the repurchase and cancellation of 2,082,559 restricted A Shares, after which the Company’s registered capital was RMB9,027,302,281. The changes in share capital structure of the Company were as follows: 7,308,256,601 A Shares, which accounted for 80.96% of the total number of shares; and 1,719,045,680 H Shares, which accounted for 19.04% of the total number of shares. ![]() 19 (II) Organization Structure of the Company Organization Structure of HTSC Office of the Supervisory Committee Supervisory Committee General Meeting Compliance and Risk Management Committee Audit Committee Development Strategy Committee Nomination Committee Remuneration and Appraisal Committee Wholly-owned Subsidiaries E-Capital Transfer Co., Ltd. Bank of Jiangsu Co, Ltd. Huatai-PineBridge Fund Management Co, Ltd. China Southern Asset Management Co., Ltd. Jiangsu Equity Exchange Co., Ltd. Holding Subsidiaries Participating Subsidiaries Board of Directors Senior Management Office of the Board of Directors Huatai United Securities Co., Ltd. Shanghai Shengju Asset Operation and Management Co., Ltd. Huatai Futures Co., Ltd. Huatai Innovation Investment Co., Ltd. Huatai Purple Gold Investment Co., Ltd. Huatai International Financial Holdings Company Limited Huatai Securities (Shanghai) Asset Management Co., Ltd. Branches Investment Advisory and Development Department Platform Operation Department Financial Products Department Wealth Management Department Research Institute Asset Custody Department Debt Financing Department Sales and Trading Department Margin Financing and Securities Lending Department Securities Investment Department Financial Innovation Department Fixed Income Department Operating Center Information Technology Department Capital Operation Department Digital Operation Department Risk Management Department Compliance and Legal Department Inspection Department Human Resources Department Planning and Finance Department General Office Strategy and Development Department Party-mass Work Development General Affairs Department Securities Branches Note: In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration modification procedures for equity change. Currently, the Company’s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, is 32%. ![]() 20 (III) The First-level Onshore and Offshore Subsidiaries of the Company Unit: Ten Thousand Yuan Currency: RMB Name of the subsidiary Address Date of establishment Registered capital Responsible person Telephone No. Huatai United Securities Co., Ltd. Room 401, Building B7, Qianhai Shenzhen-Hong Kong Fund Town, No. 128 Guiwan Fifth Road, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, the PRC 1997-9-5 99,748.00 Jiang Yu 010-56839300 Huatai Securities (Shanghai) Asset Management Co., Ltd. Room 1222, 6 Jilong Road, China (Shanghai) Pilot Free Trade Zone 2014-10-16 260,000.00 Cui Chun 021-28972188 Huatai International Financial Holdings Company Limited 62/F, The Center, 99 Queen’s Road Central, Hong Kong, the PRC 2017-4-5 HK$ 10,200,000,002.00 Wang Lei 852-36586000 Huatai Purple Gold Investment Co., Ltd. No. 180 Hanzhong Road, Nanjing, Jiangsu Province, the PRC 2008-8-12 600,000.00 Cao Qun 025-83389999 Huatai Innovative Investment Co., Ltd. No. 234 Wuyi Road, Changning District, Shanghai, the PRC 2013-11-21 350,000.00 Sun Ying 010-58034345 Huatai Futures Co., Ltd. 10/F (whole floor), No. 1 Mingzhu Third Street, Hengli Town, Nansha District, Guangzhou, the PRC 1995-7-10 393,900.00 Hu Zhi 020-83901155 Shanghai Shengju Asset Operation and Management Co., Ltd. No. 12 Dongfang Road, China (Shanghai) Pilot Free Trade Zone 2009-7-14 12,100.00 Lu Chunguang 021-28972221 Jiangsu Equity Exchange Co., Ltd. 3/F, Building 10, Financial City, No. 377 Middle Jiangdong Road, Jianye District, Nanjing, Jiangsu Province, the PRC 2013-7-4 20,000.00 Zhang Anzhong 025-89620288 Note: In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration modification procedures for equity change. Currently, the Company’s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, is 32%. ![]() 21 (IV) Number and Distribution of Securities Branches and Other Branches of the Company As of the end of the Reporting Period, the Company has 27 securities branch offices and 248 securities branches. For details of the number and distribution of branch offices and securities branches of the Company, please refer to “Appendix II. List of Branch Offices and Securities Branches” in this report. Provinces, Municipalities and Regions Number of Securities Branches Provinces, Municipalities and Regions Number of Securities Branches Provinces, Municipalities and Regions Number of Securities Branches Anhui Province 5 Beijing 8 Inner Mongolia Autonomous Region 3 Hebei Province 1 Fujian Province 4 Guangdong Province 24 Guangxi Zhuang Autonomous Region 2 Hainan Province 2 Shanxi Province 1 Henan Province 3 Heilongjiang Province 5 Jilin Province 3 Hubei Province 28 Hunan Province 3 Jiangxi Province 3 Jiangsu Province 93 Liaoning Province 7 Shandong Province 7 Shanghai 17 Sichuan Province 7 Guizhou Province 1 Chongqing 1 Tianjin 4 Gansu Province 1 Shaanxi Province 2 Qinghai Province 1 Xinjiang Uygur Autonomous Region 1 Ningxia Hui Autonomous Region 1 Zhejiang Province 10 VII. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS (I) Key Accounting Data and Financial Indicators for the Past Three Years Unit: Thousand Yuan Currency: RMB Item 2024 2023 Increase/ decrease (%) 2022 After adjustment Before adjustment Total revenue, other income and gains 54,285,483 52,260,421 3.87 46,824,372 46,824,372 Profit before income tax 15,352,340 14,204,664 8.08 12,228,038 12,228,038 Profit of this year – attributable to shareholders of the Company 15,351,162 12,750,633 20.40 11,053,987 11,052,696 Net cash generated from/(used in) operating activities 34,818,437 (28,475,553) N/A 70,290,567 70,290,567 Total amount of other comprehensive income after tax this year 597,755 315,999 89.16 1,195,949 1,195,949 ![]() 22 Unit: Thousand Yuan Currency: RMB Item At the end of 2024 At the end of 2023 Increase/ decrease (%) At the end of 2022 After adjustment Before adjustment Total assets 814,270,494 905,508,389 (10.08) 846,570,990 846,567,016 Total liabilities 622,376,573 723,290,957 (13.95) 678,714,380 678,718,307 Total equity attributable to shareholders of the Company 191,673,902 179,108,367 7.02 165,095,102 165,087,201 Total shareholders’ equity 191,893,921 182,217,432 5.31 167,856,610 167,848,709 Total share capital (shares) 9,027,302,281 9,074,663,335 (0.52) 9,075,589,027 9,075,589,027 Key Financial Indicators Key financial indicators 2024 2023 Increase/ decrease (%) 2022 After adjustment Before adjustment Basic earnings per share (RMB/share) 1.62 1.35 20.00 1.18 1.18 Diluted earnings per share (RMB/share) 1.62 1.33 21.80 1.16 1.16 ROE (%) 9.24 8.12 Increase of 1.12 percentage points 7.49 7.49 Debt-to-assets ratio (%) Note 1 69.53 76.05 Decrease of 6.52 percentage points 75.81 75.81 Net assets attributable to the Company’s ordinary shareholders per share (RMB/share) Note 2 18.10 16.91 7.02 16.24 16.24 Note 1: Debt-to-assets ratio = (total liabilities – accounts payable to brokerage clients)/(total assets – accounts payable to brokerage clients). Note 2: Net assets attributable to the Company’s ordinary shareholders per share were net of the effect of perpetual bonds. Description of key accounting data and financial indicators of the Company: Since January 1, 2023, the Group has applied amendments to IAS 12, and retrospectively adjusted the accounting statements for previous years. During the Reporting Period, the application of other new IFRSs and the amendments to IFRSs has had no material impact on the Group’s financial positions and performance for the current and prior periods. ![]() 23 Net Capital of the Parent Company and Risk Control Indicators Unit: Yuan Currency: RMB Item As of the end of the Reporting Period As of the end of the previous year Net capital 94,142,061,443.95 94,076,764,232.03 Net assets 160,886,314,922.70 155,053,212,660.64 Risk coverage ratio (%) 362.37 247.80 Net capital/net assets (%) 58.51 60.67 Net capital/liabilities (%) 27.25 22.15 Net assets/liabilities (%) 46.57 36.51 Value of proprietary equity securities and derivatives/net capital (%) 26.98 28.58 Value of proprietary non-equity securities and derivatives/net capital (%) 254.96 366.74 Core net capital 69,102,061,443.95 62,717,842,821.35 Supplementary net capital 25,040,000,000.00 31,358,921,410.68 Total risk capital provision 25,979,726,543.44 37,964,151,783.74 Total on-balance and off-balance assets 422,892,295,982.11 507,398,204,994.55 Capital leverage ratio (%) 18.05 13.98 Liquidity coverage ratio (%) 221.41 152.51 Net stable funding ratio (%) 150.36 130.84 During the Reporting Period, main risk control indicators of the Company such as net capital were all in line with the regulatory requirements, and there were no such circumstances where the risk control indicators violated the pre-warning standards or were not in compliance with the provided standards. (II) Key Accounting Data and Financial Indicators for the Past Five Years The financial conditions for the past five years are as follows: 1. Profitability Unit: Thousand Yuan Currency: RMB Item 2024 2023 2022 2021 2020 Total revenue, other income and gains 54,285,483 52,260,421 46,824,372 51,926,404 40,534,436 Total expenses 41,287,096 40,640,541 35,815,380 38,283,823 31,233,707 Share of profits of associates and joint ventures 2,353,953 2,584,784 1,219,046 2,629,981 4,203,647 Profit before income tax 15,352,340 14,204,664 12,228,038 16,272,562 13,504,376 Profit of this year – attributable to shareholders of the Company 15,351,162 12,750,633 11,053,987 13,346,106 10,822,497 ![]() 24 2. Assets Unit: Thousand Yuan Currency: RMB Item December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 Total assets 814,270,494 905,508,389 846,570,990 806,650,833 716,751,235 Total liabilities 622,376,573 723,290,957 678,714,380 654,615,049 584,439,200 Accounts payable to brokerage clients 184,586,976 144,701,360 152,551,723 147,501,833 136,387,634 Total equity attributable to shareholders of the Company 191,673,902 179,108,367 165,095,102 148,422,810 129,071,500 Total equity 191,893,921 182,217,432 167,856,610 152,035,784 132,312,035 Total share capital (shares) 9,027,302,281 9,074,663,335 9,075,589,027 9,076,650,000 9,076,650,000 3. Key Financial Indicators Item 2024 2023 2022 2021 2020 Dividend per share (RMB) 0.52 0.43 0.45 0.45 0.40 Basic earnings per share (RMB/share) 1.62 1.35 1.18 1.47 1.20 Dilutive earnings per share (RMB/share) 1.62 1.33 1.16 1.46 1.19 ROE (%) 9.24 8.12 7.49 9.84 8.61 Debt-to-assets ratio (%) Note 1 69.53 76.05 75.81 76.93 77.20 Net assets attributable to ordinary shareholders of the Company per share (RMB/share) Note 2 18.10 16.91 16.24 15.25 14.22 Note 1: Debt-to-assets ratio = (total liabilities – accounts payable to brokerage clients)/(total assets – accounts payable to brokerage clients). Note 2: Net assets attributable to the Company’s ordinary shareholders per share were net of the effect of perpetual bonds. ![]() 25 VIII. DIFFERENCES IN FINANCIAL DATA PREPARED IN ACCORDANCE WITH DOMESTIC AND FOREIGN ACCOUNTING STANDARDS There is no difference between the net profit attributable to shareholders of the Company for 2024 and 2023 and the net assets attributable to shareholders of the Company as of December 31, 2024 and December 31, 2023 set out in the consolidated financial statements prepared in accordance with the CASBE and in the consolidated financial statements prepared in accordance with the IFRSs. IX. ITEMS MEASURED UNDER FAIR VALUE Unit: Thousand Yuan Currency: RMB Name of items Balance at the end of last year Balance at the end of the year Change in the current period Effect on the profit of the current period in amount Financial assets at fair value through profit or loss 413,079,384 301,537,757 (111,541,627) 8,173,351 Equity instruments at fair value through other comprehensive income 124,506 125,860 1,354 8,800 Debt instruments at fair value through other comprehensive income 16,262,000 10,135,553 (6,126,447) 613,147 Derivative financial instruments (621,760) (952,660) (330,900) 1,261,866 Financial liabilities at fair value through profit or loss 52,671,166 40,448,332 (12,222,834) (1,379,907) ![]() 26 MANAGEMENT DISCUSSION AND ANALYSIS AND REPORT OF THE BOARD I. DESCRIPTIONS OF OUR INDUSTRY DURING THE REPORTING PERIOD Our Group conducts business operations in the securities industry, and the operating results of such industry are closely related to the development trend of the capital market. Principal businesses of the Group have always been focusing on capital market services, and its performance is affected by multiple factors such as the domestic and overseas economic environment, policy environment and market environment. During the Reporting Period, in response to the needs of domestic and overseas clients, the Group leveraged on its efficient full business chain system and leading digital financial development capabilities, continued to enhance its advantage to provide diversified products and services across markets and cycles, and continuously deepened its service model and operation model transition amidst the complex and volatile market environment, thus maintaining a momentum of steady development with positive outlook, with its major financial indicators and market position of its principal business outperforming most peers in the industry. Details of industry position of the Group’s principal businesses during the Reporting Period, please refer to the section headed “Operation Discussion and Analysis” under the “Management Discussion and Analysis and Report of the Board” in this report. As China accelerates the strategic deployment of constructing a financial powerhouse, focuses on advancing high-quality financial development and continues to deepen financial system reform, it has provided programmatic and directional planning for the capital market to move towards high-quality development. The construction of the top-level system of the capital market will be more complete, and its role in servicing the overall modernization development with Chinese characteristics and the transition and upgrading of the real economy will be continuously enhanced. With the effective implementation of the new guideline on strengthening regulation, forestalling risks and promoting the high- quality development of the capital market ( 新 “ 國九條 ”) and the “1+N” policy system of the capital market, followed by a package of targeted incremental policies, as well as the solid progress achieved in the “Five Major Areas of Finance” ( 五篇大文章 ) of financial work on the capital market, China embarked on a new round of deepening reform across the capital market. As the capital market function coordinated with investment and financing continues to be improved, continuous efforts are made to develop an ecology of capital market that encourages long-term investment, and the comprehensive service capacity of the multi-level capital market system has been effectively enhanced. The securities industry is ushering in a historic opportunity for high-quality development, which will also expose it to new risks and challenges. Meanwhile, the high level of systematic opening up of the capital market, the cultivation of first-class investment banks and investment institutions, the moderate expansion of the space for high-quality institutional capital, as well as the policy guidance of strengthening the fundamentals of the capital market and tightening supervision and management, will also guide the securities companies to speed up the transformation and upgrading of their business and management models, and to focus on the construction of a professional, integrated and platform-based service system covering the entire life cycle of their clients and the entire business chain, in order to give full play to their functions as “service providers” of direct financing, “watchmen” of the capital market and “managers” of social wealth. In addition, the increasingly complex and volatile internal and external market environment has put forward higher requirements for integrated customer service and intensive business operations in the securities industry, and high-quality securities companies with leading capital strength, outstanding professional capabilities, solid customer base, sound synergy mechanism, and integrated management and control at home and abroad will have a greater competitive advantage. ![]() 27 II. DESCRIPTIONS OF OUR BUSINESS DURING THE REPORTING PERIOD The Group is a leading technology-driven securities group in the industry, with a highly collaborative business model, a cutting-edge digital platform and an extensive and engaging customer base. Our principal businesses comprise wealth management business, institutional services business, investment management business and international business. The Group constructs a client-oriented organizational structure and mechanism, provides comprehensive securities and financial services for individual, enterprise and institutional clients from home and abroad through a platform-based, integrated and international operation mode, and aims to become a leading investment bank with strong domestic advantages and global influence. 1. Wealth management business We provide customers with diversified wealth management services, including securities, futures and options brokerage, financial products sales, fund investment advisory business, and capital-based intermediary business through mobile APP, professional PC platforms, securities and futures subsidiaries and branch offices, Huatai International and its affiliated overseas subsidiaries, in online and offline modes, domestic and overseas linkage. For securities, futures and options brokerage, we mainly execute trades on behalf of our clients in stocks, funds, bonds, futures and options, etc. to provide trading services. For the financial products sales business, we mainly provide customers with a variety of financial products sales services and asset allocation services, and the related financial products are managed by the Group and other financial institutions. Our fund investment advisory business mainly entails upon acceptance of clients’ engagement, selecting specific category, amount and timing of trading of investment funds on behalf of our clients within the scope of clients’ authorization in accordance with terms of agreement and submitting trading applications including, among others, subscription, redemption and conversion. In respect of capital based intermediary business, we provide diversified financing services including margin financing and securities lending as well as stock pledged repurchase. Key performance drivers to wealth management business include fee and commission income, interest income, etc. 2. Institutional services business With investment banking serving as the traction and institutional sales serving as a link, we integrate investment banking, institutional investor services and investment trading business resources to provide various types of corporate and institutional clients with all-round comprehensive financial services, which mainly include investment banking business, prime brokerage business, research and institutional sales business and investment and trading business. ![]() 28 (1) Investment banking business primarily consists of domestic and overseas equity financing, bond financing, financial advisory, OTC business, etc. For equity financing business, we provide issuance and underwriting domestic and overseas IPO, equity refinancing and depository receipts for our clients. For bond financing business, we provide issuance and underwriting services including various types of domestic and overseas bond financing and asset securitization for our clients. For financial advisory business, we provide professional services including industrial merger and acquisition, share acquisition, financing advisory, corporate restructure and public offering of REITs for our clients. For OTC business, we provide clients with NEEQ listing and follow-on financing services, and relevant OTC businesses engaged in by Jiangsu Equity Exchange. Key performance drivers to investment banking business include underwriting and sponsorship fees, financial advisory fees, etc. for stocks, bonds and merger and acquisition business. (2) Prime brokerage business mainly includes the provision of asset custody and fund services for various types of asset management institutions, such as private and public funds, including settlement, liquidation, reporting and valuation. In addition, it also provides transactions, margin trading, sales of financial products, derivatives research and other value-added services for clients of prime brokerage. Key performance drivers to prime brokerage business include fees for the fund custody and service business. (3) Research and institutional sales business mainly consists of research business and institutional sales business. For research business, we provide various professional research and advisory services for clients from home and abroad. For institutional sales business, we promote and sell diversified securities products and services to various institutional clients. Key performance drivers to research and institutional sales business include incomes from services concerning various research and other institutions. (4) Investment and trading business mainly includes equity trading, FICC trading and OTC derivative transactions. The Group conducts equity, FICC and other financial instruments transactions, and reduces investment risks and increases investment returns through various trading strategies and techniques. At the same time, in order to meet customers’ needs for investment and financing as well as risk management, we also engage in market making business and OTC derivatives business. In terms of equity trading, we invest and trade stocks, ETFs and derivatives, and engage in market making services for stocks in the STAR Market, financial derivatives and financial products. In terms of FICC trading, we invest and trade all kinds of FICC and derivatives in the interbank and exchange bond markets, and engage in market making services for interbank and exchange markets as well as carbon emissions trading. In terms of OTC derivative transactions, we develop and trade OTC financial products for customers, mainly including equity return swaps, OTC options and structured notes. Key performance drivers to investment and trading business include investment incomes from equity, FICC products and derivatives, etc. ![]() 29 3. Investment management business We accept fund entrustments from clients, develop and provide various financial products for our clients and manage their assets through our professional investment and research platform as well as our substantial client base, effectively satisfying their investment and financing needs. Our investment management business mainly consists of securities firm asset management, private equity fund management and asset management for fund companies, etc. For securities firm asset management, we participate in the operation of securities firm asset management business through our wholly-owned subsidiary Huatai Asset Management; such business includes collective asset management business, single asset management business, specialized asset management business and public offering fund management business (which is operated on a differentiated basis from our public offering fund management business for fund companies under the Group). For private equity fund management business, we operate private equity funds business, which includes investment and management of private equity funds, through our wholly-owned subsidiary Huatai Purple Gold Investment. For asset management business for fund companies, the Group holds non-controlling interests in two public offering fund management companies, namely China Southern Asset Management and Huatai-PineBridge, through which we participate in the operation of asset management business for fund companies. Key performance drivers to asset management business include management fee income, investment income, etc. 4. International business In overseas markets and with Huatai International as its holding platform for international business, the Group operates international business through the wholly-owned subsidiaries of Huatai International including Huatai Financial Holdings (Hong Kong), Huatai Securities (USA) and the Singapore Subsidiary. Based on the Hong Kong market, it steadily deploys on the US, Europe, the Southeast Asia and other major markets. (1) The operations of the Group in Hong Kong are mainly conducted by Huatai Financial Holdings (Hong Kong), a wholly-owned subsidiary of Huatai International, which comprehensively connects with full business chain system of the Group and provides one-stop cross-border integrated financial services for domestic and foreign customers. (2) Huatai Securities (USA) owns the US broker-dealer license and the US proprietary trading license. It also obtained the business qualification for securities trading with institutional investors in Canada and market access to major stock exchanges in Europe. It became an introducing broker for US futures products, and was qualified as a broker and dealer for US Treasuries and a limited underwriting member of the Nasdaq Stock Market in the United States. (3) The Singapore Subsidiary owns the licenses on capital market services and the waiver of licensing requirements on wealth management advisory issued by Monetary Authority of Singapore and conducts securities trading and corporate financing businesses. Key performance drivers to international business include wealth management income, investment banking income, investment income, asset management income, etc. ![]() 30 III. AWARDS AND HONORS (I) Key awards and honors of the Group The selection of “2023 Financial Technology Development Award” held by the People’s Bank of China: “CAMS Big Data Intelligent Credit Investment Research Platform Project” and “Jian Fu” ( 簡富 ), the Digital Due Diligence Platform for Investment Bank, won the second prize The selection of “2024 Golden Bull Award for the Securities Industry” (2024 年度證 券業金牛獎 ) held by China Securities Journal ( 《中國證券報》 ): The Company was awarded “Golden Bull Award for Financial Technology of Securities Companies” ( 證券公司金融科技金牛獎 ), etc. The selection of “Collection of Best Practice Case of Board of Directors of Public Companies 2024” (2024 年度上市公司董事會最佳實踐案例徵集活動 ) held by China Association for Public Companies: The Company was awarded “Best Practice Case of Board of Directors of Public Companies 2024” (2024 年度上市公司董事會最佳實踐案例 ), etc. The selection of “Jinding Award” ( 金鼎獎 ) held by National Business Daily ( 《每日經 濟新聞》 ): The Company was awarded “2024 Outstanding Cultural Construction Case” (2024 年度優秀文化建設案例 ), “2024 Best Typical Case of Rural Revitalization” (2024 年 度最佳鄉村振興經典案例 ), etc. ![]() 31 (II) Key awards and honors of the business segments of the Company Wealth management business Shanghai Stock Exchange: The Company was awarded “2023 Top 10 Options Brokers” (2023 年度十佳期權經紀商 ), etc. HKEX: The Company was awarded “2023 Outstanding Broker Award of Hong Kong Stock Connect” (2023 年度港股通卓越券商獎 ), “2023 Outstanding ETF Broker Award of Hong Kong Stock Connect” (2023 年度港股通 ETF 卓越券商 獎 ), “2023 Mainland Broker Award for Long-term Contributions to Security Data” (2023 年度長期 貢獻證券數據內地券商獎 ), etc. The selection of “2024 Junding Award in China’s Securities Industry” (2024 年度中國證券業君鼎 獎 ) organized by Securities Times ( 《證券時報》 ): The Company was awarded “2024 Junding Award for All-round Wealth Management Broker in China’s Securities Industry” (2024 年度中國 證券業全能財富經紀商君鼎獎 ), “2024 Junding Award for All-round Digital Transformation in China’s Securities Industry” (2024 年度中國證券 業數字化轉型全能君鼎獎 ), etc. “ZhangLe Fortune Path” ( 漲樂財富通 ) was awarded “2024 Junding Award for Wealth Management Service Brand in China’s Securities Industry” (2024 年度中國證券業財富服務品牌君 鼎獎 ), “2024 Junding Award for Digital Pioneer Application in China’s Securities Industry” (2024 年度中國證券業數字化先鋒 APP 君鼎獎 ), etc. The 20th anniversary special selection of the “Yinghua Award” ( 英華獎 ) for ETF organized by China Fund News ( 《中國基金報》 ): The Company was awarded “Excellent ETF Liquidity Service Provider” ( 優秀 ETF 流動性服 務商 ), “Excellent ETF Seller” ( 優秀 ETF 銷售商 ), etc. Shenzhen Stock Exchange: The Company was awarded “2023 Outstanding Options Brokers” (2023 年度期權優 秀經紀商 ), etc. The selection of the “Second Session of Golden Bull Award for Fund Investment Advisory Institutions” ( 第二屆基金投顧機構金牛獎 ) organized by China Securities Journal ( 《中國證券 報》 ): The Company was awarded the “Golden Bull Award for Fund Investment Advisory Institutions” ( 基金投顧機構金牛獎 ), etc. The selection of the “Huazun Award” ( 華尊獎 ) organized by Cailian Press ( 《財聯社》 ): The Company was awarded “Award for Best Institution in Wealth Management” ( 最佳財富管 理機構獎 ), “Award for Best Wealth Management Practice” ( 最佳財富管理實踐獎 ), “Award for Best Investment Advisory Team” ( 最佳投顧團隊 獎 ), etc. The selection of the “Jinding Award” ( 金鼎獎 ) organized by National Business Daily ( 《每日經濟 新聞》 ): The Company was awarded “2024 Most Comprehensive Wealth Management Broker” (2024 年度最佳財富管理綜合實力券商 ), “2024 Most Distinctive Broker for Fund Investment Advisory Services” (2024 年度最具特色基金投顧 服務券商 ), etc. The selection of the “2024 Yinghua Award for Brokers in China” (2024 年度中國券商英華獎 ) organized by China Fund News ( 《中國基金報》 ): The Company was awarded “2024 Outstanding Broker Demonstration Institution for Wealth Management” (2024 年度優秀券商財富 管理示範機構 ), “2024 Outstanding Investment Advisor Demonstration Institution” (2024 年度 優秀投顧示範機構 ), “2024 Outstanding Broker Demonstration Institution for Fintech” (2024 年度 優秀券商金融科技示範機構 ), etc. “ZhangLe Fortune Path” ( 漲樂財富通 ) was awarded “2024 Outstanding Broker Application Demonstration Institution” (2024 年度優秀券商 APP 示範機構 ), etc. ![]() 32 Institutional services business Shanghai Stock Exchange: The Company was awarded “Rating A in Comprehensive Evaluation on Stock Market Makers on the STAR Market in 2024” ( 科創板股 票做市商 2024 年度綜合評價 A 評級 ), “Rating AA in Comprehensive Evaluation on Main Market Makers for Shanghai-Listed Funds in 2024” ( 滬 市上市基金主做市商 2024 年度綜合評價 AA 評級 ), “2023 Outstanding Stock Market Maker on the STAR Market” (2023 年度優秀科創板 股票做市商 ), “2023 Outstanding Market Maker for Funds” (2023 年度優秀基金做市商 ), “2023 Outstanding Market Maker for Public REITs” (2023 年度優秀公募 REITs 做市商 ), “2023 Outstanding Market Maker for Bonds and ETFs” (2023 年度優秀債券 ETF 做市商 ), etc. Huatai United Securities was awarded “2023 Outstanding Supporting Unit for Comprehensive Services and Consultancy for SOEs” (2023 年度 央企綜合服務諮詢支持傑出單位 ), etc. The selection of the “Seventeenth Session of Best Investment Bank” ( 第十七屆最佳投行 ) organized by NewFortune ( 《新財富》 ): Huatai United Securities was awarded “Best Domestic Investment Bank” ( 本土最佳投行 ), “Best Investment Bank in Practicing ESG” ( 最 佳踐行 ESG 投行 ), “Best Investment Bank in Equity Underwriting” ( 最佳股權承銷投行 ), “Best Investment Bank in Bond Underwriting” ( 最佳債 權承銷投行 ), “Best IPO Investment Bank” ( 最佳 IPO 投行 ), “Best Refinancing Investment Bank” ( 最佳再融資投行 ), “Best Investment Bank in Mergers and Acquisitions” ( 最佳併購投行 ), “Best Investment Bank in Corporate Bonds” ( 最佳公司 債投行 ), “Best Investment Bank in Asset-Backed Securitization (ABS)” ( 最佳資產證券化 (ABS) 投 行 ), “Best Investment Bank in Serving Overseas Markets” ( 海外市場能力最佳投行 ), etc. The selection of “2024 Junding Award in China’s Securities Industry” (2024 年度中國證券業君鼎 獎 ) organized by Securities Times ( 《證券時報》 ): Huatai United Securities was awarded “2024 Junding Award for All-round Investment Banking in China’s Securities Industry” (2024 年度中國證 券業全能投行君鼎獎 ), “2024 Junding Award for M&As and Reorganization Financial Advisory in China’s Securities Industry” (2024 年度中國證券 業併購重組財務顧問君鼎獎 ), etc. Shenzhen Stock Exchange: The Company was awarded “Rating AA in Evaluation on Liquidity Services for Shenzhen- Listed Funds in 2024” ( 深市基金 2024 年度 流動性服務評價 AA 評級 ), “Excellent Fund Liquidity Service Provider of 2023” (2023 年度 優秀基金流動性服務商 ), “Excellent Participant in the Innovation in Bond Trading Business of 2023” (2023 年度債券交易業務創新優秀參與機 構 ), “Excellent Bond Market Making Institution” ( 優秀債券做市機構 ), “Excellent Institution for Cross-Market Bond Trading” ( 優秀跨市場債券交 易機構 ), etc. Huatai United Securities was awarded “Outstanding Intermediary for Fixed Income Innovative Products of 2023” (2023 年度固定收 益創新產品優秀中介機構 ), etc. The selection of the “SRP China Awards 2023” organized by Structured Retail Products, a provider of structured products market consulting: The Company was awarded “Best Performance-Securities House”, “Deal of the Year”, “Best Derivative Manufacturer-Securities House”, etc. China Foreign Exchange Trade System: The Company was awarded “Institution with Market Influence of the Year” ( 年度市場影響力 機構 ), “Market Innovative Business Institution” ( 市場創新業務機構 ), “Derivatives Innovation Award” ( 衍生品創新獎 ), “Automated Trading Award” ( 自動化交易獎 ), “Star of Bond Carry Trade Strategy” ( 債券利差交易策略之星 ), etc. The selection of the “Jinding Award” ( 金鼎獎 ) organized by National Business Daily ( 《每日經濟 新聞》 ): Huatai United Securities was awarded “2024 Best Manager among Brokers and Investment Banks” (2024 年度券商投行最佳管理人 ), “2024 Innovation Leadership Project Award” (2024 年度 創新引領項目獎 ), etc. ![]() 33 Investment management business Shanghai Stock Exchange: Huatai Asset Management was awarded “Outstanding Manager for Asset Securitization Business for 2023” (2023 年度資產證券化業務優 秀管理人 ), etc. China Southern Asset Management was awarded “2023 Top Ten ETF Managers” (2023 年 度十佳 ETF 管理人 ), etc. The selection of “2024 Junding Award in China’s Futures Industry” (2024 年度中國期貨業君鼎獎 ) organized by Securities Times ( 《證券時報》 ): Huatai Futures was awarded “2024 Junding Award for Leading Futures Company in China” (2024 年度中國領軍期貨公司君鼎獎 ), “2024 Junding Award for Outstanding IT Service Futures Company in China” (2024 年度中國傑出 IT 服務 期貨公司君鼎獎 ), etc. The selection of “ChinaVenture 2023 Annual Rankings” ( 投中 2023 年度榜單 ) held by ChinaVenture Investment: Huatai Purple Gold Investment was awarded “Best Chinese Private Equity Investment Institutions TOP20” ( 中國最佳私募股權投資機 構 TOP20), “Best Chinese-funded Private Equity Investment Institutions TOP20 in China” ( 中國最 佳中資私募股權投資機構 TOP20), “Best Chinese Subsidiaries of Brokers for Private Funds TOP 10” ( 中國最佳券商私募基金子公司 TOP10), “Best Institutions for Investment in Medical Devices Fields TOP20 in China’s Medical and Health Service Industry” ( 中國醫療及健康服務 產業最佳醫療器械領域投資機構 TOP20), “Best Institutions for Investment in Medical Services Fields TOP10 in China’s Medical and Health Service Industry” ( 中國醫療及健康服務產業 最佳醫療服務領域投資機構 TOP10), “Best Institutions for Investment in Biomedical Fields TOP30 in China’s Medical and Health Service Industry” ( 中國醫療及健康服務產業最佳生物醫 藥領域投資機構 TOP30), etc. Shenzhen Stock Exchange: Huatai Asset Management was awarded “Outstanding Manager for Special Asset-backed Plans for 2023” (2023 年度優秀資產支持專項計 劃管理人 ), “Outstanding Fixed-income Product Duration Management Institution” ( 優秀固定收益 產品存續期管理機構 ), etc. China Southern Asset Management was awarded “2023 Outstanding Bond Investment and Trading Institution” (2023 年度優秀債券投資交易 機構 ), “2023 Outstanding ETF Research Support Award” (2023 年度優秀 ETF 研究支持獎 ), etc. The selection of “2024 Junding Award in China’s Securities Industry” (2024 年度中國證券業君鼎 獎 ) organized by Securities Times ( 《證券時報》 ): Huatai Asset Management was awarded “2024 Junding Award for All-round Asset Management Agency in China’s Securities Industry” (2024 年 度中國證券業全能資管機構君鼎獎 ), etc. The 20th anniversary special selection of the “Yinghua Award” for ETF organized by China Fund News ( 《中國基金報》 ): China Southern Asset Management was awarded “Outstanding ETF Manager” ( 優秀 ETF 管理人 ), etc. Huatai-PineBridge was awarded “Outstanding ETF Manager” ( 優秀 ETF 管理人 ), etc. The selection of the “Eighth Session of Golden Bull Award for Equity Investment in China” ( 第 八屆中國股權投資金牛獎 ) organized by China Securities Journal ( 《中國證券報》 ): Huatai Purple Gold Investment was awarded “Golden Bull Broker and Outstanding Institution for Equity Investment” ( 金牛券商股權投資卓越 機構 ), etc. ![]() 34 International business The Asset ( 《財資》 ): Huatai International was awarded “Best Corporate and Institutional Advisor (Broker) in Hong Kong Area” ( 香港地區最佳企業和機構顧 問 ( 券商類 )), “Best Private Bond Advisor Award” ( 最佳私募債券顧問獎 ),“Best IPO (J&T)” ( 最 佳 IPO ( 極兔 )), “Best Sustainable Bond (Local Government)” ( 最佳可持續債 ( 當地政府 )),“Best Green Bond (Financial Institution)” ( 最佳綠 色債 ( 金融機構 )), “Best Mobile Brokerage Application” ( 最佳手機券商 APP), “Annual Multi-asset Management Company” ( 年度多資產 資管公司 ), etc. Asian Private Banker ( 《亞洲私人銀行家》 ): Huatai International was awarded “Best Wealth Manager – the Greater Bay Area ( 最佳財 富管理機構 － 大灣區 )”, “Best Wealth Manager – Ultra-high Net Worth Customers ( 最佳財富管理 機構 － 超高淨值客戶 )”, “Best Wealth Manager – Digital Innovation ( 最佳財富管理機構 － 數字化 創新 )”, etc. Euromoney ( 《歐洲貨幣》 ): Huatai International was awarded “Best Securities House in Hong Kong” ( 香港地區最佳 投行獎 ), “Best for Equities in Hong Kong” ( 香港 地區最佳股票業務獎 ), etc. Bloomberg Businessweek ( 《彭博商業周刊》 ): Huatai International was awarded “Outstanding Initial Public Offering Project Award” ( 首次公開招股項目卓越大獎 )”, “Corporate Financing Excellence Award in the Greater Bay Area” ( 大灣區企業融資卓越大獎 ), “Excellence Award for Digital Innovation” ( 數 碼創新卓越大獎 ), “Excellence Award for Risk Management” ( 風險管理卓越大獎 ), “Excellence Award for High-net-worth Products/Service” ( 高 淨值產品 ╱ 服務卓越大獎 ), “Annual Outstanding Technology Securities Company Award” ( 年度 科技證券公司卓越大獎 ), “Annual Outstanding Financial Derivatives Institution Award” ( 年度金 融衍生產品機構卓越大獎 ), etc. The selection of the “Fifth Session of Best Investment Bank” ( 第五屆最佳投行 ) organized by Wind: Huatai Financial Holdings (Hong Kong) was awarded “Best H-Share IPO Sponsor” ( 最 佳港股 IPO 保薦人 ), “Best H-Share IPO Global Coordinator” ( 最佳港股 IPO 全球協調人 ), “Best H-Share IPO Bookrunner” ( 最佳港股 IPO 賬簿管 理人 ), “Best H-Share Refinancing Underwriter” ( 最佳港股再融資承銷商 ), “Best Chinese USD Bond Underwriter” ( 最佳中資美元債承銷商 ), etc. ![]() 35 IV. ANALYSIS OF CORE COMPETITIVENESSES DURING THE REPORTING PERIOD (I) A first-class comprehensive securities group firmly committed to the path of high-quality development The Group firmly strode forward with the development of the times and resonated with national strategies. It focused on its main responsibility and business, strengthened its functions and positioning, adhered to the principle of integrity and innovation, proactively seized the opportunities in market reform, strove to build a first-class investment bank with both local advantages and global influence and continued to promote the Group’s high-quality development to be at the forefront of the industry. It has achieved historical breakthroughs in market-based, digital and international development, embarked on a differentiated development path and ranked among the leaders in the industry in terms of comprehensive strength. In recent years, the Group saw its major business continue to improve in terms of volume and scale and market rankings, and its asset and liability structure continue to optimize, and has made new breakthroughs in diversified business development and international business expansion. The asset size and profitability of the Group ranked in the forefront of the industry. The Group maintained its leading position in the industry in terms of the development of wealth management, investment banking, investment and trading and other core businesses. The unique and differentiated advantages of asset management business continued to strengthen; and overseas business has become an important growth engine, ranking it the top place among Chinese-funded securities firms in terms of comprehensive strength. As the first international securities group listed in Shanghai, Hong Kong and London, the Group has developed the first-class brand image with wide influence and recognition in domestic and overseas markets. The MSCI ESG rating of the Company has maintained the highest level among domestic securities companies since 2021 and raised from AA to AAA in 2024, achieving two consecutive years of level-up to the highest rating in the global investment banking industry. During the Reporting Period, Standard & Poor’s kept the long-term issuer rating of “BBB+” with stable prospect for the Group and its subsidiary Huatai International, which is the highest level among Chinese-funded securities companies. (II) Platform-based, integrated and international service systems covering the full business chains The Group always adheres to the original intention of customer services and the fundamentals of financial services, focuses on the financial needs and changes of individual, institutional and corporate customers, and continuously promotes the upgrading of organization with “One Customer” internally, “One Huatai” externally and the “integrated operation” internally and externally. Following the policy of giving priority to the “Five Major Areas of Finance” ( 五篇大文章 ) of financial work, it focuses on building a platform-based, integrated and international system covering the full business chains and a new development model. In the field of wealth management customer services, following the core direction of creating value for customers, the Group has established and improved the vertically integrated operation system and development model driven by the headquarters and linked with the headquarters and branches, optimized and enhanced its customer management capability, and continuously strengthened its classified and tiered service system for customers. It stuck to build its content platform-driven professional service capability, ![]() 36 and actively explored and advanced the integration of new artificial intelligence technology with its wealth management business, consolidating and strengthening the leading position and professional brand influence of wealth management services in the industry. In the field of institutional customer services, the Group continued to cement the base of the globally integrated institutional service platform, and made every effort to enhance its professional financial capabilities in asset pricing, research, trading and product creation, so as to better meet the service needs of institutional clients in cross-border investment and trading, and to continue to expand and deepen its customer service. In the field of corporate customer services, it always served corporate growth with perspectives and logics of industry, constantly strengthened industrial insight, asset knowledge and pricing ability, and actively built a globalized asset and industrial network. Through constantly tapping into TMT, general health, energy and environmental protection, high-end manufacturing and other key industrial ecosystems, it fully improved comprehensive services in domestic and overseas markets on various products, facilitated the development and global expansion of various outstanding enterprises and actively served the development of the real economy and the establishment of modern industrial systems, contributing more Huatai power in supporting the development of new productive forces. (III) Technology development advantages continuously leading digital financial reform of the industry Technology empowerment has been the core competitiveness developed by the Group for years with key inputs and a main development line leading its transformation and transcendence. In 2019, the Group firstly initiated the comprehensive digital transformation in the industry, resolutely took the path of platform-based business development and adopted digital thinking and means to fully transform business and management models and facilitate the implementation of the digital operation thinking in all levels of pre-, middle-and post ends. Meanwhile, it joined all parties in building an open ecosystem and developing fintech platforms and products at the industry level. Through transformation practice and capability accumulation, the Group has developed technology into the differentiated development feature leading the digital financial reform in the industry as well as the core driver to improving value creation capability and market competitiveness. Relying on the industry-leading independent research and development capability on information technology and the innovation capability on digital products, the Group continuously promoted the deep integration of business with technology. In terms of the platform-based business, the Group developed industry-leading retail and institutional customer service systems centered on “Zhang Le” ( 漲樂 ) and “Xing Zhi” ( 行知 ), built a series of business work platforms with industry foresight such as “AORTA” ( 聊 TA), “QingCloud” ( 青 雲 ), “Investment Banking Cloud” ( 投行雲 ) and “Capital Management Cloud” ( 資管 雲 ), and constructed “CAMS”, “FICC Elephant Trading Platform” (FICC 大象交易平 台 ), “Securities Lending Path” ( 融券通 ), “RIS” ( 睿思 ) and a series of other important platforms that led industry innovation and development in key areas such as trading and investment research, which effectively facilitated the reshaping of business models and developed distinctive market leading advantages in various business areas. In terms of application intelligence, the Group actively embraced and deployed cutting-edge AI technology, accelerated the construction of large model capabilities and large model platform systems, and continuously explored the creation of value applications in typical scenarios, thereby being equipped with basic capabilities in application building, model management and production deployment, and initially achieving application ![]() 37 and implementation in multiple scenarios such as intelligent research reports, intelligent research and development and intelligent investment advisory. In terms of internationalization empowerment, the Group continued to strengthen the platform capability support for the international deployment expansion of key businesses, actively promoted the construction of an integrated next-generation trading system both at home and abroad, and its self-developed Global Trading Platform (GTP) had officially been put into operation. (IV) International development capability at the leading edge of high-level two-way opening up Based on the advantages of local resources in China and leveraging on its deep understanding of the Chinese market and assets, the Group fully seized strategic opportunities in the continuous deepening of the high-level opening up. In the course of deepening services for domestic customers in “going global” and overseas customers in “coming to China”, the Company steadily expanded its business layout in global mainstream markets and key regions, and actively promoted the integrated operation and management of its main businesses both at home and abroad. With the Hong Kong market as the bridgehead and cross-border businesses as drivers, the Group vigorously developed the capital market intermediary business and fully enhanced the comprehensive financial service capability on cross-border and integrated operation, embarking on a differentiated path of international development. The Group grasped strategic opportunities in deepening the opening and interconnection of the Chinese capital market to step up its pace of going global and became the first Chinese company issued GDRs through the Shanghai-London Stock Connect and listed on the London Stock Exchange. It established Huatai Securities (USA) and the Singapore Subsidiary, obtained various key business licenses in major overseas markets. In recent year in particular, the Group further expanded its presence in mature markets such as Japan and emerging markets such as Vietnam, and gradually developed a global value chain system with the coverage and interconnected development of the Mainland, Hong Kong, the US, the UK, Singapore and other markets in Asia, Europe and America. It continuously deepened its participation and influence in major international markets and significantly enhanced the execution capability on integrated projects covering different markets, assets and products. It stands among the leading Chinese-funded securities firms in Hong Kong in terms of overall strength and walks in the forefront in going global among Chinese-funded securities firms. In recent years, the Group’s international business effectively responded to the impacts of the complicated and changeable environment in international markets and maintained the development momentum with steady progress against the market trend. Going global has become a new engine driving the Group’s high-level development and opening up room for growth. (V) Comprehensive compliance and risk control systems with professional and digital accumulation The Group always adheres to the development concept that “compliance is the bottom line and risk management is the capability”, deepens the building of capabilities on digital compliance and risk control and management and strives to implement and improve the integrated and group-level compliance and risk management structure and system. With the target of “three-dimensional compliance management with risk as the orientation and data as the basis” and leveraging on “driven by data, unified platform and empowering business”, the Group firstly promoted the building ![]() 38 of digital compliance in the industry to develop the basis for the professional and efficient digital compliance capability. It continuously strengthens the construction of three-dimensional compliance, vigorously explores the establishment of cross-border and integrated compliance control systems, comprehensively solidifies the integrated compliance management mechanism of the Group, constantly improves the compliance value creation capability and cements the compliance bottom line in international development. Meanwhile, the Group adheres to the risk management culture targeting stability and long-term development, upholds the risk management concept with full participation, coverage and penetration, and continues to improve the comprehensive risk management system adapting to the integrated and international development of the full business chains. It strives to enhance the Group’s risk management capabilities in both domestic and overseas markets, strengthens the risk management mechanism and control measures, focuses on the research and development and iteration of risk management tools, and enhances risk management capabilities across the board with the empowerment of platform. The Group follows the market closely and keeps abreast of business, takes active prevention measures, strengthens risk management and control in high-risk areas and key businesses, enhances the foresight and effectiveness of risk management, and safeguards the bottom line of business risks to ensure the sound development of the business. (VI) Development platform empowering overall growth of first-class and professional talents The Group always adheres to the “people-oriented” concept, continuously stimulates the vitality of talents and constantly upgrades the value of talents. It constructs an integrated platform for the comprehensive growth and development of talents, establishes a professional talent cultivation and development system based on the platform, focuses on the introduction of outstanding talents and increasingly improves the talent richness to facilitate the common growth of outstanding talents with organizations and convert talent advantages into core competitive advantages. The Group continuously improves the mechanism of market-oriented selection and employment and effectively carries out the tenure system and contractual management of senior management. Senior management members practically conduct exploration with a forward-looking horizon and lead all staff of Huatai to constantly create new chapters in development and vigorously promote the advancement and progress in the development of the Group. The Group insists on implementing the strategy of building a strong enterprise with talents, always adheres to the talent selection and appointment mechanism with the orientation of capabilities and contributions, establishes and improves the all-round, multi-layered and three-dimensional talent supply chain systems and talent cultivation mechanisms with the characteristics of Huatai. The Group insists on cultivating outstanding young talents in the market and practice, actively gathers a number of industry leading talents to build a team of high-quality managers and professionals with international vision and cross-border business experience, and works to fully stimulate and maintain the vitality of the talent team. Meanwhile, the Group proactively guides employees to constantly enhance awareness on rules, cherish occupational reputation, carry forward professional spirit and abide by business ethics to refresh the fine tradition of the staff the Huatai in continuous iteration and development and provide solid guarantees of talents to the strategic advancement of the Group. ![]() 39 (VII) Cultural value system with positive and win-win spirit for common progress After over 30 years of development, the Group has achieved transformation and advancement towards an international securities group. Culture has been the spiritual force in its development and the value orientation leading to its growth and progress. Bearing in mind the mission and responsibility and upholding patriotism, Huatai people dare to pioneer, to compete for the first and to make breakthroughs with concerted efforts despite the environment. After years of integration and evolving, the Company gradually developed the cultural characteristics of “technology empowerment, innovation and initiative” and an “open and inclusive” cultural atmosphere. The Company insists on improving the “hard strength” in development with the “soft power” in culture and deeply establishes and implements the corporate spirit of “openness, inclusiveness, innovation, struggle and responsibility”. In recent years, the Company actively cultivated financial culture with Chinese characteristics and deeply practiced the cultural concepts of the securities industry. In combination with its own development conditions and led by the establishment of a featured cultural brand system, it solidly advanced cultural construction and developed the cultural value systems and the cultural work systems with internal cohesion, external brand as well as distinctive features through system building, themed activities, publicity and training, awards and other forms. Meanwhile, the Company developed the cultural and brand matrix with the integration of Party building culture, technology culture, compliance culture and risk culture, and continuously enhanced the internal and external recognition and penetration of culture, achieving the deep integration of cultural building with corporate governance, development strategies and development models as well as the organic combination with the overall development of people, the historical and cultural inheritance and the building of professional capabilities. Through the continuous promotion of the Company’s cultural and value systems and the constant forging of the spiritual force, it shaped the grounding for the steady and long-term development of the Company’s businesses, making the positive and win-win spirit an important guarantee to the development of the Company in different cycles and the establishment of international competitiveness, and consolidating the cultural foundation for high-quality development and establishment of a first-class investment bank. ![]() 40 V. OPERATION DISCUSSION AND ANALYSIS Unit: Thousand Yuan Currency: RMB Segment Segment revenue and other income and gains Segment expenses Segment results Segment profit margin (%) Year-on- year change of segment revenue and other income and gains (%) Year-on- year change of segment expenses (%) Year-on-year change of segment profit margin Wealth management business 23,808,741 (17,586,912) 6,221,829 26.13 2.07 5.73 Decrease of 2.55 percentage points Institutional services business 8,169,556 (7,172,421) 997,160 12.21 (22.56) (9.30) Decrease of 12.83 percentage points Investment management business 2,659,847 (1,530,117) 362,631 13.63 (20.81) (3.71) Decrease of 39.95 percentage points International business 18,193,615 (11,260,104) 6,942,152 38.16 40.59 5.74 Increase of 20.61 percentage points Others (including offset) 1,453,724 (3,737,542) 828,568 57.00 (30.32) (3.19) Increase of 18.55 percentage points Segment total 54,285,483 (41,287,096) 15,352,340 28.28 3.87 1.59 Increase of 1.10 percentage points (I) Overall operation conditions In 2024, against the backdrop of a global economy full of challenges and variables, China’s economy demonstrated strong resilience and stability in general. Solid progress was achieved in high-quality development and efforts were made to speed up fostering new productive forces. At the same time, the Third Plenary Session of the 20th CPC Central Committee and the new guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market ( 新 “ 國九條 ”) have mapped out the direction of the reform and development of China’s capital market, bringing both new opportunities and challenges to the operation and development of securities companies. In the face of the complex internal and external business environment, the Group adhered to its functional positioning, and closely followed the “1+N” policy system of the capital market to serve the national strategic goals. It consolidated the foundation for high-quality development, adhered to its customer-centric principle, and made concrete efforts in the “Five Major Areas of Finance” ( 五篇大文章 ) of financial work. Moreover, it firmly deepened the “two-pronged” ( 雙輪驅動 ) development strategy of wealth management and institutional services empowered by science and technology, continued to strengthen the strategic layout of its international business, built its core competitiveness through the cycle, and constructed a sound customer service system linking the whole business chain. Key initiatives included: in terms of wealth management, the Group took “creating value for customers” as the core, made further progress in constructing an integrated customer management system in a hierarchical manner, and solidified the middle platform of finance and platform-based operation system, striving to enhance professional wealth management service capabilities; in terms of institutional services, ![]() 41 the Group, in response to policy and market changes and to meet the demands for financial services of institutional customers, focused on enhancing multi-product, full-chain, and full cycle operation capabilities for comprehensive customer value through platform-based empowerment and international expansion; in terms of corporate customer services, focusing on national strategic emerging industries, the Group fully integrated the service resources across the entire business chain, promoted continuous improvements in corporate governance and operation quality with professional services, and actively empowered the modernization of industrial system and the accelerated development of new productive forces; in terms of international development, the Group further expanded its presence in mature and emerging markets, actively assisted Chinese customers to “go global” and “bring in” overseas customers with its cross-border integrated comprehensive service system, so as to better serve the high-level opening up of finance; in terms of digital finance, the Group continued to promote the building of platform capabilities in each area and overseas layout and operation, continuously expanded new business and operating models by relying on technological empowerment, built an open technological cooperation ecosystem, actively explored the application of AI technology in professional financial service scenarios, and unleashed new momentum created by the integration of “business + technology”. Meanwhile, the Group further promoted comprehensive risk management and full compliance management, implemented intensive and refined operation and management, and continuously consolidated the foundation for higher quality and efficiency and steady development. During the Reporting Period, the Group’s operation results reached a record high and its overall strength continued to rank among the top among leading securities companies, with high-quality development continuing to deepen. In 2025, the Group will focus on the main business of capital market service, adhere to the main responsibility of providing financial services to the real economy, and firmly deepen the “two-pronged” core development strategy of wealth management and institutional services empowered by science and technology. It will accelerate the iterative upgrading of the business model, taking into account the continuously evolving financial service demands of individual, corporate and institutional clients, and make every effort to build an integrated and comprehensive service capability covering major global markets and with synergies across the business chain. It will unleash the in-depth value of its clients and business, and continue to make progress in terms of revenue capacity, financial technology strength and international development level. (II) Wealth management business 1. Market environment In recent years, China’s wealth management market has shown a development trend of continuous expansion of scale, increasingly complex competitive landscape and continuous innovation of products and services. Under the new policy, market and technology environment, the underlying logic of asset allocation and service model of the wealth management industry is undergoing a profound evolution. Buyer side investment consultants are paying more attention to meeting customers’ deep-seated wealth management needs and improving customer experience in all aspects; “Cross-boundary Wealth Management Connect” ( 跨境理財通 ) has entered the 2.0 stage, expanding the channels and categories of offshore asset allocation for more customers; and the accelerated iteration and application of new technologies represented by AI are profoundly affecting the development trend of the wealth management industry. ![]() 42 In 2024, the A shares market curbed before an upsurge, presenting an overall pattern of shock and differentiation. According to the statistics from Wind Information, the total turnover in the A share market was RMB257.01 trillion, representing a year-on-year increase of 21.17%. As the development of margin financing and securities lending business became increasingly standardized, the market size increased, and the balance of margin financing and securities lending business across the market was RMB1,864.583 billion, representing a year-on-year increase of 12.94% according to the statistics from Wind Information. For fund investment advisory business, with more diversified business models, the business enjoyed a considerable development potential. According to the statistics from the Asset Management Association of China, in the second half of 2024, the existing scale of equity funds of top 100 fund sales institutions was RMB4,851.8 billion, the existing scale of funds in non-monetary markets was RMB9,536.7 billion, and the existing scale of stock index funds was RMB1,703.9 billion. With a sounder product system in place, the domestic futures market exhibited steady growth in its trading scale. According to the statistics from the China Futures Association, the total turnover of the futures markets across the country was RMB619.26 trillion, representing a year-on-year increase of 8.93%. Given increasingly diversified and personalized customer demands and more intense competition from peers and other industries, it is necessary for wealth management institutions to build a refined customer management system, a brand-based product operation system and a professional investment advisory service system to provide customers with all-asset, full-cycle and integrated financial services and continue to expand the space for sustainable development. At the same time, it is also important to take the initiative to embrace new technologies and integrate into the new ecosystem, steadily promote the innovation of service models and operation modes, and actively explore new space for development. 2. Operational measures and achievements (1) Securities, futures and options brokerage business and wealth management service During the Reporting Period, the Group proactively adapted to changes in the market environment and customers’ needs and worked on building an operation system based on customer classification and stratification to create professional and brand-based services that target groups such as mass customers, wealth management customers, high-net-worth customers and entrepreneurial customers. It actively promoted the efficient response and precise delivery of its services, thereby expanding the scale of customers and assets. The Group consistently updated the construction of financial middle platform to actively build a high-quality and matrix-type content service system driven by a professional financial kernel. It continuously improved the service system of professional investment tools and strategies, and accumulated new driving forces for business development to create differentiated advantages in inclusive financial services. The Group actively promoted the development of vertically integrated customer-centric operations, created a service-driven customer growth model and built a customer growth strategy with integrated financial services as its core competitiveness. Moreover, it continued to optimize its customer structure, deepened its customer group management ability, and pushed for the ![]() 43 realization of customers’ entire-life-cycle service companion. It continued to expand its cross-border business opportunities and constantly enhance its cross-border financial service capabilities, and was approved as one of the first batch of securities companies to participate in the “Cross-boundary Wealth Management Connect” ( 跨境理財通 ) business on a pilot basis, with the cross-border integrated business linkage mechanism further optimized. It has established a sound investment advisory service system featuring both standardized paradigm and personalized advantages, continuously improved professional training, platform empowerment and incentive guidance mechanism, and actively built a professional and high-quality investment advisory team to continuously enhance the effective coverage of clients and the depth of asset allocation. According to internal statistics, as of the end of the Reporting Period, the number of the Company’s staff registered for carrying out securities investment consultancy (investment advisory) with the Securities Association of China was 3,480. The Group gave full play to its financial expertise and fintech advantages, continued to improve its digital and intelligent wealth management platform, and constantly optimized its platform-based operation strategy and service system. On the basis of the empowerment of the financial capability middle platform, the Group empowered clients and investment consultants in terms of investment research, content, operation and marketing, as well as compliance control, which has effectively enhanced the content quality and professional kernel of the investment advisory services, and provided clients with asset allocation services that integrate resources from the entire business chain. During the Reporting Period, for “ZhangLe Fortune Path”, the Group continued to deepen the application of AI technology, continuously enriched the core customer service scenarios, made efforts to improve the special services such as ETF projects, asset allocation and “Investment-leading Officers” ( 領投官 ), and upgraded and iterated the branded “i Kan” (i 看 ) financial content platform, further improving the platform-based content service system and customer operation model, and effectively enhancing customers’ professional trading and financial service experience. The Group continued to maintain its advantages in trading services based on advanced platforms. In terms of ETF business, it actively created tools covering various product options, product analysis and trading strategies to guide clients in long-term allocation and improve their investment experience. In terms of stock options brokerage business, it continued to enhance its trading support capabilities, continued to cultivate qualified investors and strengthened risk management, thus maintaining its leading position of this business in the market. For the futures brokerage business, as of the end of the Reporting Period, Huatai Futures had 9 futures branches and 42 futures branches in total covering 4 municipalities directly under the Central Government and 17 provinces in China, being the agent of 146 types of futures. The Group continued to strengthen the link between its securities and futures businesses, with 244 securities branches permitted to be engaged in Futures IB Business as of the end of the Reporting Period. ![]() 44 (2) Financial product sales and fund investment advisory business During the Reporting Period, the Group proactively constructed an integrated asset allocation service system based on buyers’ perspective with meeting customers’ needs for diversified wealth management as the guidance, professional investment and research of financial products as the cornerstone and intelligence and platform as business drivers, coordinated and promoted the development of financial product sales, allocation, fund investment advisory and other business and provided customers with diversified portfolio strategies and products allocation solutions. According to internal statistics, during the Reporting Period, the number of financial products held (except for the cash management product “Tian Tian Fa” ( 天天發 )) was 16,760, and their sales scale (except for the cash management product “Tian Tian Fa” ( 天天發 )) was RMB503.991 billion. The fund investment advisory business grew steadily, with a business scale of RMB18.079 billion as at the end of the Reporting Period. According to the statistics from the Asset Management Association of China ( 中國證券投資基金業協會 ) in the second half of 2024, the Company’s equity public funds maintained a scale of RMB120.2 billion, the funds in the non-monetary market maintained a scale of RMB166.6 billion, and the equity index funds maintained a scale of RMB108.7 billion, all ranking second in the securities industry. During the Reporting Period, with the focus on the differentiated and multi-level demands of classified and stratified customers for asset allocation and with the buyer side investment advisory business as the core, the Group continued to enrich and improve the supply system of financial products. It established an allocation supply matrix for buyer side investment advising based on various dimensions, continued to enhance the product selection and risk prevention and control capabilities, and provided multi-dimensional solutions from the selection of single products to the allocation of strategies and tailor-made allocation. It further improved the buyer side investment advisory allocation system, intensified the research and application of diversified assets allocation, and optimized the “Worry-free Families” ( 省 心家族 ) allocation service, providing open selection service for publicly offered products through “Worry-free Choice” ( 省心選 ), strategy service based on publicly offered funds through “Worry-free Investment” ( 省心投 ), and personalized allocation solutions for customers through “Worry-free Enjoyment” ( 省心享 ). It continuously optimized the advisory service system of buyer-side investment advising, fostered the “Investment-leading Officers” ( 領投官 ) service model, provided professional support with the asset allocation service platform as the base, and continuously improved its ability in three-dimensional companion services covering the entire business cycle to enhance customer experience. It enhanced the capability construction of digital platforms, continued to build the core middle platform system for buyer-side investment advising, established an open factor research and strategy algorithm platform, and iteratively upgraded the account diagnosis and asset allocation tools; it actively explored the application scenarios of AI large model-enabled product allocation, and enhanced the business support of investment research to investment advisors through the full connection with investment advisor service workflows, so as to enhance the overall business efficiency and capability of empowerment. ![]() 45 (3) Capital-based intermediary business During the Reporting Period, for its capital-based intermediary business, the Group actively responded to changes in business rules and the market environment, and continued to build a customer-oriented and integrated securities financial ecosystem delivering products and covering all operations. It strengthened intelligent risk control and conducted its business in a compliant and prudent manner; and it constructed a service system covering the entire lifecycle of customers through digitalization, and built up a core business advantage by responding efficiently to customers’ requests through the linkage of the entire business chain. For its margin financing business, the Group continued to deepen customer operation on a classified and stratified basis and constantly optimized service solutions and service tools to effectively promote customer acquisition and revenue growth, thus achieving steady growth in business market share; and for its securities lending business, it fully implemented the requirements of regulatory policies, strengthened the supervision of customers’ trading behaviors and continuously improved the internal control mechanism, so as to consolidate the base of compliance. According to the regulatory statement data, as of the end of the Reporting Period, the balance of margin financing and securities lending business of the Parent Company was RMB130.107 billion, ranking second in the industry, and the integral maintenance guarantee ratio was 259.50%. The pending repurchase balance of stock pledged repurchase business was RMB16.201 billion in total, with an average fulfillment guarantee ratio of 235.21%, among which, the pending repurchase balance of on-balance-sheet business was RMB3.980 billion, with an average fulfillment guarantee ratio of 232.21%; while the pending repurchase balance of off-balance-sheet business was RMB12.221 billion. 3. Prospect for 2025 For wealth management business, the Group will adhere to the core of “creating value for customers” and continue to optimize and iterate platform functions and business scenarios to promote empowerment of its financial capability middle platform and upgrading of its service capability. It will deepen and refine customer operation capability, actively explore new customer growth models guided by professional content and operation services and leverage on the comprehensive financial services to satisfy the diversified investment needs of customers and practically enhance customers’ service experience. The Group will fully harness its strengths in the entire business chain, deepen the implementation of the classified and stratified customer service system, strengthen the integrated domestic and overseas operation model and supporting operation capabilities, build a content service matrix covering the multiple needs of customers, and take the opportunity of the “Cross-boundary Wealth Management Connect” ( 跨境理財通 ) to actively create a new ecosystem of domestic and overseas wealth management services. It will actively build a differentiated training and professional certification system throughout the entire life cycle of investment advisors, aiming to set up a professional investment advisory team for clients. It will continuously optimize the buyer side investment advisor business model and effectively enhance the effectiveness of wealth management services to provide clients with entire-life-cycle operation companion services. Taking advantage of the Group’s ![]() 46 financial expertise and fintech strength, the Group will seize the opportunity of AI development to promote the continuous construction of the financial capability middle platform and in-depth professional empowerment, through which it will effectively identify customers’ needs and match their investment service strategies, continue to build up professional service capabilities driven by the content platform, and facilitate the operation of wealth management business and service coverage. For the financial product sales and the fund investment advisory businesses, the Group will integrate resources in the entire business chains, actively expand the basic capabilities of its digital platform and continuously enhance the operation and service system construction of its buyer side investment consultancy business. In this regard, it will continue to explore and push the incubation of “Investment-leading Officers” ( 領投官 ), expand and upgrade its cross-border product lines, work on building up a full-spectrum product matrix, and enhance the professional investment research and asset allocation service capabilities of its investment consultants in multiple dimensions, in order to provide customers with diversified solutions for financial product allocation and intensify customer companion services to improve their investment experience. For the capital-based intermediary business, the Group will continue to deepen the integrated securities and financial ecosystem, optimize differentiated marketing policies and diversified marketing tools, build up platform service capabilities in a forward-looking manner, enrich the business system and enhance customer stickiness. For its margin financing business, the Group will continue to refine its customer transaction services, establish an all-round financing customer service system, keep enhancing customers’ experience with platform services and innovative products, and press ahead institutional financing through the whole business chain; and for its securities lending business, the Group will continue to strictly adhere to the compliance bottom line and implement regulatory requirements, so as to maintain the steady development of its business in a regulated manner. (III) Institutional services business 1. Market environment In 2024, most of the major indexes in the domestic stock market showed picking up. The Wind All China Index rose by 10.00%, CSI 300 rose by 14.68%, the Shanghai Composite Index rose by 12.67% and the Shenzhen Component Index rose by 9.34%; the bond market continued the upward trend amid fluctuations, with the CSI Aggregate Bond Index and the China Bond Composite Full-price (Aggregate) Index increased by 8.82% and 4.98%, respectively. In the face of the new changes in the market environment, with the effective implementation of the new guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market ( 新 “ 國九條 ”) and the “1+N” policy system of the capital market, the development and growth of patient capital and the encouraged entering of medium-and long-term capital into the market, the ecosystem of capital market development continued to be reshaped. The increasingly integrated, differentiated and cross-border clients’ demand has also put forward higher requirements on the development of the institutional service business, while at the same time, the cooperation and service models between ![]() 47 securities companies and various institutions have also been changing profoundly. Accurate identification of customers’ demands and provision of full-chain, integrated and customized service solutions will become important directions for upgrading the service business of institutions to a higher level. In 2024, China’s equity financing market experienced an overall decline in its scale. According to the statistics from Wind Information, fund raised on the full caliber, including IPOs, additional offering and share allotment, totaled RMB312.967 billion, representing a year-on-year decrease of 69.69%, among which, funds raised from IPOs were RMB66.280 billion, representing a year-on year decrease of 81.54%; and funds raised from refinancing were RMB246.687 billion, representing a year-on-year decrease of 63.38%. The bond financing market maintained a growth momentum with the total amount of bond issuance of RMB79,862.476 billion, representing a year-on-year increase of 12.41%. M&A market transaction activity declined, but there has been a significant increase in the number of deals in the pipeline and the first disclosure of reconstructing proposals since the fourth quarter. According to the statistics from Zero2IPO Research Center private placement department ( 清科研究中心私募通 ), the number of M&A cases in the M&A market in China was 2,335, representing a year-on-year decrease of 12.02% and the amount of transactions was RMB600.090 billion, representing a year-on-year decrease of 39.06%. With the rolling out of the “Sixteen Measures for the Capital Market to Serve the High-level Development of Technology Enterprises” ( 支持科技十六條 ), “Eight Measures on Deepening Reform of the SSE STAR Market to Serve Technological Innovation and Development of New Productive Forces” ( 科創板八條 ), “Opinions on Deepening Market Reform through Merger, Acquisition and Restructuring of Listed Companies” ( 併購六條 ) and other measures and policies, high-quality resources in the market continued to gather in the field of new productive forces. A securities company will have a more significant competitive advantage if it could grasp the development logic of emerging industries and future industries with a global vision, improve the comprehensive service system covering the needs of enterprises in their entire life cycle, and promote the improvement of both quality and efficiency of the real economy and the development of new productive forces. 2. Operational measures and achievements (1) Investment banking business During the Reporting Period, aiming to serve the high-quality development of the real economy, the Group developed its business with providing support for the self-reliance in advanced technology and the development of new productive forces as the original and ultimate objectives, focused on high quality customers to provide domestic and overseas integrated platform-based services covering the entire business chain, thus enhancing its overall market competitiveness and actively building a first-class investment banking service system boasting with local strengths and international perspective. In the evaluation on the quality of securities firms’ practices in investment banking, bond business and financial advisory businesses in 2024 released by the Securities Association of China, Huatai United Securities was rated A in terms of each category. ![]() 48 Consolidated data Currency: RMB Categories of Issuance 2024 2023 Times of lead underwriting (time) Lead underwriting amount (in RMB10 thousand) Times of lead underwriting (time) Lead underwriting amount (in RMB10 thousand) Issue of new shares 9 853,812.05 20 1,735,477.09 Additional issue of new shares 8 768,133.85 31 3,778,198.31 Allotment of shares – – 1 58,536.44 Issue of bonds 2,726 68,030,238.22 2,569 66,618,500.08 Total 2,743 69,652,184.12 2,621 72,190,711.92 Note: The above data are from the regulatory statements, while the statistical caliber is the issuance completion date of the project; preferred shares are included in the additional newly issued shares; bonds issuance includes treasury bonds, enterprise bonds, corporate bonds (including exchangeable bonds), convertible bonds, short-term financing bonds and medium-term notes, etc., but it excludes asset-backed securitization projects. ① Equity financing business During the Reporting Period, the equity financing business adhered to the entire business chain strategy of focusing on industries, making regional layout and deeply exploring customers, maintaining its leading position in terms of the ranking and market share in the industry. Focusing on serving new productive forces and technological innovation, it has completed a number of financing projects with market influence and sponsored in 2 of the top 10 IPO projects and participated in 2 of the top 10 refinancing projects in the whole market. According to the statistics from Wind Information, the Group’s equity lead-underwriting amount (including IPOs, additional offerings, allotment of shares, preferred shares, convertible bonds and exchangeable bonds) was RMB54,897 million, ranking second in the industry; its A-share IPO lead-underwriting amount was RMB8,538 million, ranking second in the industry; its IPO lead-underwriting numbers in the STAR Market and ChiNext were 3 and 4, respectively, with lead-underwriting amounts of RMB2.784 billion and RMB3.022 billion respectively, both ranking first in the industry. ② Bonds financing business During the Reporting Period, the bonds financing business continuously adhered to serving the high-quality development of the real economy. On the basis of strict risk control, it fully utilized its full license advantage, actively cultivated core customer groups and maintained its position in the industry. The Group actively served national strategies, focused on leading quality clients and promoted the issuance of green ![]() 49 bonds and technological innovation bonds, underwriting a total of 59 green bonds with RMB15.698 billion and 136 technological innovation bonds with RMB35.013 billion. According to the statistics from Wind Information, the Group’s lead-underwriting amount of full variety bonds was RMB1,296.048 billion, ranking third in the industry. According to the statistics from the Securities Association of China, the actual bidding for local government bonds won by the Company amounted to RMB34,558 million and the actual binding for areas won by the Company was 33, both ranking first in the industry. ③ Financial advisory business During the Reporting Period, the Group actively kept abreast of policy changes and industry trends, supported listed companies for quality development and insisted on serving technological innovation and new productive forces by practically carrying out diversified financial advisory business. The Group leveraged on its M&A and restructuring business as an opportunity to provide differentiated service to customers, strengthened its M&A and restructuring business brand and enhanced the stickiness of its quality customers in the industry. According to the statistics of public information disclosed by listed companies, the number of auditing restructuring projects disclosed for the first time for which the Group acted as the independent financial adviser was 4, ranking first in the industry. During the Reporting Period, the Group continued to lead the innovation of domestic and overseas M&A with its professional ability, completing the 3Peak restructuring project using directional convertible bonds as payment instruments, which was the first case after the new regulations on directional convertible bonds, and the acquisition of Minsheng Securities by Guolian Securities, which was the first market-based M&A project among securities companies after the Central Financial Work Conference. It completed cross-border M&A projects such as the acquisition of a subsidiary of SK Chemicals in South Korea by Yako Technology, the acquisition of an oil and gas equipment manufacturer in Singapore by Nanjing Develop Advanced Manufacturing Co., Ltd., empowering Chinese enterprises to expand into the global market. ④ OTC business During the Reporting Period, the Group actively leveraged on the connection path between the NEEQ and the Beijing Stock Exchange, fully displayed the integrated advantage as a large investment bank and continued to provide technological innovation-based growth enterprises with multi-layered capital market services. During the Reporting Period, the Group completed four projects listing on the NEEQ, three projects receiving consent letters for listing and four projects under review for listing. Jiangsu Equity Exchange constantly strengthened compliance and risk management, continued to build a comprehensive investment and financing service platform, actively promoted the regional equity market systems and business innovation pilots, officially set up a special board for “specialized and sophisticated ![]() 50 enterprises that produce new and unique products”, and implemented the transfer business of shares of private equity and venture capital. The business scenarios for stock options were continuously enriched, and the incubation service system for listing and board transfer was optimized and improved, so were the diversified and comprehensive financial service capabilities. As of the end of the Reporting Period, 16,948 enterprises have been listed and displayed (of which 1,226 were on the special board for “specialized and sophisticated enterprises that produce new and unique products”). It had 82,213 investors of all types, and it raised RMB24.299 billion for enterprises through financing during the Reporting Period. (2) Prime brokerage (PB) business During the Reporting Period, the Group efficiently integrated the resources of the full business chains, enhanced technology empowerment relying on the digital and platform-based development strategy, gave full play to the data value of underlying assets, and provided the institutional customer base with integrated and entire-life-cycle comprehensive financial services, with an aim to build up the core competitiveness based on operation. As of the end of the Reporting Period, the Group had 13,159 fund products in custody and the total size of fund in custody reached RMB419.782 billion. We provided administration services to 19,151 fund products (including 1,159 products from Huatai Asset Management), of which the service scale reached RMB1,190.810 billion (including the business scale of Huatai Asset Management of RMB417.598 billion). According to the statistics from the Asset Management Association of China ( 中國證券投資基金業協會 ) in the fourth quarter of 2024, the Group ranked the fourth in the industry in terms of the number of products filed under the private fund custody business. (3) Research and institutional sales business During the Reporting Period, in terms of research business, the Group firmly promoted the transformation of business models and continued to improve the research team allocation and the research service system and continuously deepened the cooperation efficiency of the entire business chain. It focused on leading institutional customers, deeply tapped into the research value, and carried out multi-dimensional research service activities to facilitate the high-quality development of business. The Group adhered to the international business strategy, continued to strengthen the construction of overseas service platforms, continuously improved the matrix of overseas research series products and reach carriers, effectively expanded the service coverage of clients and targets in key overseas regions, and promoted the layout of cross-border research services in a multi-dimensional manner. It continuously upgraded and iterated the digital platform, constantly consolidated the application of investment and research foundation, continued to optimize functions such as intelligent research reports, further improved the production and management processes of research reports, continuously enhanced the quality and efficiency of the research business and digital operation capabilities, and strove to strengthen the empowerment of the research business. The Group has actively carried out various forms ![]() 51 of research service activities, including releasing 12,311 research reports (including those in English), organizing 56,373 research roadshow services and 878 thematic teleconferences, and holding investment strategy summits, investors exchanges and other featured and thematic meetings. In terms of the institutional sales business, the Group deeply aligned it to the diversified needs of institutional investors, continuously enriched institutional service products and contents, and continued to promote the construction of institutional investor working platform and trading platform, so as to consolidate an integrated and platform-based institutional customer service system in the whole business chain; it accelerated the international process by actively broadening its presence in the overseas market, and took advantage of team synergy and resource endowment both at home and abroad to continue to build up a differentiated competitive advantage. It strove to build the brand power and market influence of its business, with its service ranking of leading strategic customers rising against the trend. During the Reporting Period, the volume of sub-position transactions for the public funds was RMB1,311.732 billion. (4) Investment and trading business ① Equity trading business During the Reporting Period, the Group actively adapted to changes in the market and regulatory environment, continuously iterated and upgraded its multi-level, specialized and multi-strategy investment and trading system on absolute gains. With big data trading business, macro-hedging business and innovative investment business as the core, it constantly improved its platform-based business system and business model, so as to effectively enhance its professional investment and trading capacity and risk control capability. The Group actively built a trading-centric business system, constructed and improved a three-dimensional quantitative monitoring framework of “market + strategy”, and continuously strengthened the market adaptability and risk-resistant capability of its quantitative strategies, so as to fully grasp market opportunities. It continued to improve the depth and foresight of its investment research, further standardized its investment framework system and continued to enhance its core investment research capabilities. It continued to exploit the field of cutting-edge IT technology to further consolidate the technological barriers of the platform, constantly optimize the performance of the investment trading business platform and facilitate the accumulation of investment and research capability and the improvement of process management. In terms of the market making and trading business, the Group focused on the updating and iteration of market making and trading strategies and systems, actively expanded the boundary of market making business, continuously explored business coordination models and improved risk control systems, thus maintaining sound business operation. As of the end of the Reporting Period, the Group has filed a total of 126 ![]() 52 market-making stocks for the market making of stocks on the STAR Market and provided market making services for a total of 589 ETF funds and 42 REITs funds for the market making of listed funds, both ranking among the top in the market. ② FICC trading business During the Reporting Period, the Group proactively promoted the construction of a cross-border integrated platform, upgraded and iterated its transaction service capacity and financial product supply capability, and continuously empowered its business development to serve the real economy and high-level opening up. In terms of the fixed-income proprietary investment business, the Group practiced an absolute return strategy, focused on strategy research and development and upgrading and forging of core trading and pricing capabilities, and adjusted trading strategies and asset positions in accordance with market dynamics, so as to continue to stabilize profitability. In terms of market making business, it focused on building a “systematic, automated and strategic” market making system for spot bonds and obtained the qualification as a preferred quoter in iDeal and an auto market maker in Xbond for spot bonds, with market making quotation channels increasingly enriched, market marking service boundary expanded and the scale of market making for major varieties ranking at the forefront of the industry. In terms of bulk commodity and foreign exchange business, the Group continuously strengthened research on strategies and transactions, put into practice overseas bond hedging trading business, and constructed the ability to provide diversified carbon financial products and trading services for both domestic and overseas markets, with the foundation for diversified development continuously solidified. As for the FICC Elephant Trading Platform (FICC 大象交易平台 ), the Group actively built an integrated framework featuring research, model strategy, trading risk control and customer service, with the digital level of strategy research and development comprehensively upgraded and the FICC trading model reshaped and optimized. According to the statistics from the Securities Association of China, the scale of credit protection tools created by the Group was RMB4,680 million, ranking first in the industry. ③ OTC derivatives trading business During the Reporting Period, the Group adhered to the principle of “aiming at serving the real economy and being guided by satisfaction of customers’ risk management needs” in conducting its OTC derivatives trading business, continued to deepen integrated compliance and risk control, emphasized on professional capacity building, and continued to cultivate its core competencies in hedging transactions, product design and pricing, and customer service, so as to continuously consolidate the foundation of its main responsibilities and business. It steadily enhanced its business innovation capability, upgraded and optimized its product structure, and continuously solidified its transaction ![]() 53 advantages. It also effectively expanded the depth and breadth of its customer coverage, actively explored growth points for transactions in offshore markets, and provided customers with a full range of derivatives trading services with more diversified investment and risk management tools. Furthermore, the Group improved its digital and platform-based service system at a faster pace, actively built its transaction-driven, customer-demand oriented and platform-enabled core competencies, and facilitated the accumulation, upgrading and transformation of its core business competencies. According to the data calibers in the regulatory statement SAC agreement, as of the end of the Reporting Period, the Group had 7,868 income swap transaction business contracts with an ongoing size of RMB84.699 billion; the Group had 1,867 OTC option trading business contracts with an ongoing size of RMB134.558 billion. During the Reporting Period, the Group issued 2,891 income receipts through the China Securities Internet System and OTC market, with a total amount of RMB32.061 billion. 3. Prospect for 2025 For investment banking business, based on its profound insights into industries, enterprises and assets, the Group will give full play to the traction of the entire business chain and to the role of the Group as a portal for quality assets, so as to continuously enhance its core competitive advantages in market-based innovation and cross-border integration and synergy, and build up a first-class investment banking service capability with international competitiveness. With firm focus on key industries, it will expand the layout of strategic emerging industries and future industries, accommodate customers’ domestic and overseas financial service needs with full-market and full-cycle services covering all products and business chains, and build a globalized industrial network to give effective support to Chinese enterprises in their overseas layout, and provide better services to the real economy and the development of new productive forces. In terms of equity financing business, the Group will continue to strengthen the strategy of industry focus and regional cultivation, actively build quality projects with market influence, and promote the leading market share in relevant industries and regions. In terms of bond financing business, the Group will continue to improve its value judgement ability to continuously enhance the quality of its projects and improve customer selection criteria, focus on quality customers, and strictly control business risks. In terms of the M&A and restructuring financial advisory business, the Group will give full play to its business advantages, actively expand its license and non-license business, strengthen its business brand by setting up market benchmark cases, and enhance the stickiness of industrial quality clients. For research and institutional sales business, the Group will focus on the changing needs of key institutional clients, continue to increase the breadth and depth of customer coverage, optimize and improve the classified and stratified institutional service system that integrates the whole business chain, and continue to deepen the platform-based empowerment and systemic division of labor. It will steadily promote its international strategy, actively build a global institutional customer network and an internationalized institutional product system, and make efforts ![]() 54 on building integrated and comprehensive financial service capability across on – and off-market and domestic and offshore markets, so as to further enhance its industry position and market influence. For investment trading business, the Group will continue to build platform-based and systematic investment and trading capabilities, improve the customer-oriented business structure and service system, practically upgrade and transform toward the orientation of enhancing asset pricing rights and productization of trading capabilities and constantly boost the core competitiveness. In terms of equity trading business, the Group will continue to be based on the three core business lines of big data trading, macro hedging and innovative investment, consolidate the advantageous business barriers, expand new markets, enrich new varieties and develop new strategies. It will actively lay out the overseas market, continue to promote the construction of systems and platforms to be internationalized and intelligent, and enhance the core ability to obtain scaled, diversified and absolute returns. In terms of FICC trading business, the Group will continue to practice the cross-border integration strategy, promote the integration of domestic and overseas businesses and overall balance sheet planning, actively explore new directions for business growth, continue to build an integrated FICC trading platform, and continuously improve the transaction pricing capability and investment research capability. In terms of OTC derivatives trading business, the Group will strengthen the construction of the digital platform, continue to enhance the professional trading and hedging capabilities and full-chain customer service capabilities, continuously optimize the product design, actively expand the overseas business, continue to consolidate the competitive advantages of differentiation, and provide high-quality services to meet the demands of customers for risk management and asset allocation. (IV) Investment management business 1. Market environment In recent years, China’s asset management industry has been expanding in its scale, and indexing investment has been developing rapidly. At the same time, with the further promotion of the reform of fees for public funds, the continuous improvement of the requirements for the standardized operation of private funds and the full implementation of the personal pension system, the industry has entered into a new period of high-quality transformation and development, with a new pattern of business development featuring in-depth competition and cooperation and improved quality and efficiency taking its form at a faster pace. According to the statistics from Asset Management Association of China ( 中 國證券投資基金業協會 ), as of the end of the fourth quarter of 2024, the total amount of asset management products of fund management companies and their subsidiaries, securities companies and their subsidiaries, futures companies and their subsidiaries and private fund management institutions was RMB72.85 trillion, among which, the amount of public funds was RMB32.83 trillion and the amount of private asset management products of securities companies and their subsidiaries was RMB6.10 trillion. With the arrival of a low-interest rate era, in order to become a first-class investment institution, we must return to the origin of asset management services, adhere to the investor-oriented approach and focus on enhancing active management capabilities, and more importantly, we should ![]() 55 provide customers with high-quality product series with more comprehensive risk-return characteristics and richer categories by optimizing the product structure, innovating the investment strategies and enhancing the service level, so as to create differentiated competitive advantages. In 2024, the private equity market as a whole continued its downward trend, with capital further gathered to strategic emerging industries and technology enterprises. Meanwhile, with the introduction of policies such as “Policy Measures to Promote High-quality Development of Venture Capital Investment” ( 創投十 七條 ) and “New Policy on Central Enterprise Venture Capital Fund” ( 央企創 投基金新政 ), the “fund-raising, investment, management and exit” ( 募投管退 ) process continued to circulate. A new market ecosystem of “long-term capital for long investment” ( 長錢長投 ) is expected to gradually take shape. According to the statistics from Zero2IPO Research Center private placement department, in 2024, 3,981 new funds were raised in China’s equity investment market, with a total fundraising amount of RMB1,444.929 billion, representing a year-on-year decrease of 20.80%; and there were 8,407 investment cases (after eliminating cases with extreme value) in China’s equity investment market, with a total investment amount of RMB603.647 billion, representing a year-on-year decrease of 10.35%. With the increasing improvement of regulatory rules on private funds, it is more necessary for private equity institutions to uphold long-termism, insist on investing in companies at an early stage, companies with small size, companies with long-term prospects and companies with strong technology, cultivate patient capital to sustainably empower enterprises to develop, and expand new investment models and create distinctive strengths in supporting the development of new productive forces. 2. Operational measures and achievements (1) Asset management business of securities companies During the Reporting Period, Huatai Asset Management, a wholly-owned subsidiary of the Group, actively adapted to changes in the market and regulatory environment. Always adhering to the customer-oriented philosophy and the development mission of providing quality service to the real economy, it gave full play to the distinctive resource advantages of asset management as a securities company, strengthened the differentiated development endowment, and consolidated the platform-based infrastructure capacity. Moreover, it highly focused on key business directions, continuously upgraded the service system of the whole business chain and satisfied the asset management needs of customers throughout their life cycle, so as to foster differentiated core competitiveness. It firmly advanced the platform-based and differentiated development strategies on business, made good use of the Group’s advantages in customer resources, continuously explored new business growth points and constantly adjusted the business structure. In terms of investment asset management business, it actively built an integrated and large-scale investment research system, continuously enriched the product layout, and empowered the exploration and transformation of customer value in the whole business chain. In terms of investment bank asset management business, it deeply exploited internal resources and built-up service capacity in collaboration with the ![]() 56 whole industry chain to increase the coverage of key clients and promote the revitalization of strategic clients’ assets. According to the regulatory statement data, as of the end of the Reporting Period, the total asset management scale of Huatai Asset Management was RMB556.267 billion, representing a significant increase compared with the end of the previous year. According to statistics from Wind Information, during the Reporting Period, Huatai Asset Management, acting as the program manager, issued 154 enterprises’ ABS projects, ranking first in the industry; and the issuance scale was RMB131.971 billion, ranking second in the industry. During the Reporting Period, Huatai Asset Management promoted the completion of the issuance and listing of Baowan Logistics REIT and Jianye High-tech Investment REIT projects, and by acting as the fund manager and special program manager, it continuously improved its ability to provide full-chain services in the REITs business. During the Reporting Period, for asset management business of securities companies, the Group strictly controlled risks and continued to enhance its active investment management capability and client service capability by continuously developing core competitiveness on platform-based operation and integration. It actively built scaled and differentiated product systems covering different risk-return characteristics. For the collective asset management business, a total of 291 collective asset management plans were under management and the total management scale was RMB63.271 billion. In respect of the single asset management business, a total of 599 single asset management plans were under management and the total management scale was RMB156.232 billion. In respect of specialized asset management business, a total of 269 specialized asset management plans were under management and the total management scale was RMB198.095 billion. In respect of the public fund management business, we managed 43 public fund products in total with an aggregated management scale of RMB138.669 billion. ![]() 57 The scale of the securities companies’ asset management business is as follows: Unit: 100 million Yuan Currency: RMB Business type 2024 2023 Collective asset management business 632.71 534.18 Single asset management business 1,562.32 1,307.51 Specialized asset management business 1,980.95 1,954.02 Public fund management business 1,386.69 959.38 Note: The above data are from the regulatory statements. (2) Private equity fund management business During the Reporting Period, for the private equity fund management business, the Group focused on key industry research based on its advantages, deeply deployed on key industries, appropriately adjusted the principle of fund allocation, raised the standards on the selection of projects and actively sought diversified withdrawal paths from invested enterprises. Meanwhile, it continued to explore cooperation opportunities within the ecosystem, strengthened the partnership with large SOEs, leading enterprises in the industries and listed companies to steadily expand the scale of fund management, increasingly improve the market competitiveness and steer more resource elements towards new productive force. As of the end of the Reporting Period, Huatai Purple Gold Investment and its secondary subsidiaries as managers have filed a total of 32 private equity investment funds with the Asset Management Association of China ( 中國證券投資基 金業協會 ), with a total subscription amount of RMB63.839 billion and a total paid-up capital of RMB47.778 billion. During the Reporting Period, the above-mentioned private equity investment funds implemented a total of 37 investment projects with a total investment amount of RMB1.964 billion. (3) Asset management business of fund companies During the Reporting Period, with adherence to equal emphasis on compliance management and business development, fund companies under the Group continuously stepped up efforts on product research and business innovation, strengthened the forward-looking layout on featured products, constantly deepened the whole process service system and fully displayed the advantages in the integration of all businesses under the investment and research system to increasingly enhance the comprehensive capabilities on cross-cycle and diversified asset allocation and continue to maintain the ![]() 58 increase in the total scale of assets under management. China Southern Asset Management continuously optimized product layout and business system, proactively established value-creating capabilities supported by intelligent and platform-based operation. As of the end of the Reporting Period, the total assets under its management amounted to RMB2,470.503 billion, among which the asset size of mutual funds business amounted to RMB1,319.381 billion. Huatai-PineBridge kept on optimizing its product design and investment strategy, and enriched its product categories, with significant growth in the size of index funds. As of the end of the Reporting Period, the total assets under its management amounted to RMB688.208 billion, among which the asset size of mutual funds business amounted to RMB669.186 billion. According to the statistics of the Shanghai and Shenzhen Stock Exchanges, as of the end of the Reporting Period, the scale of the broad-based index fund CSI 300ETF under Huatai-PineBridge was RMB359.627 billion, ranking first among all non-monetary ETFs on the Shanghai and Shenzhen Stock Exchanges. During the Reporting Period, China Southern Asset Management and Huatai-PineBridge were approved to issue the first batch of Saudi ETFs in the PRC to track the FTSE Saudi Arabia Index in the form of ETF cross-listing. (The profit or loss from equity investments of China Southern Asset Management and Huatai-PineBridge were included under other segments in the segment report) (4) Asset management business of futures companies During the Reporting Period, Huatai Futures, a wholly-owned subsidiary of the Group, with the objectives of maintaining high-quality development and comprehensively enhancing the overall competitiveness of its business, continued to improve the effectiveness of compliance, risk control and management, and continuously enriched the system of derivative-featured products centered on customers’ needs. It further deepened capability of derivatives-featured asset management, accelerated the digital transformation of its operation, actively created a new model of business development and effectively met the differentiated risk preferences and asset allocation needs of its customers. As of the end of the Reporting Period, Huatai Futures managed a total of 30 asset management plans which were in the duration period. The total asset management scale was RMB888,450,600, and the futures equity scale was RMB538,675,800. ![]() 59 (5) Alternative investment business The Group carried out alternative investment business through its wholly-owned subsidiary Huatai Innovative Investment. During the Reporting Period, Huatai Innovative Investment fully improved business synergy and efficiency, focused on the development of FINTECH equity investment and the co-investment business of the STAR Market, and steadily explored the co-investment business of the ChiNext and the strategic placement business of the Beijing Stock Exchange according to regulatory policies and the Group’s business layout. As of the end of the Reporting Period, there were 38 subsisting investment projects with an investment scale of RMB1,778,226,800. The investment attributes mainly include co-investment on the STAR Market and equity investment. 3. Prospect for 2025 The asset management business of securities companies will continue to rely on the system of the entire business chain of the Group. The Group will give full play to the genetic advantages as an investment bank, open up domestic and overseas channels through the whole chain, and actively promote the international expansion of business. Further efforts will be made to strengthen digital application capability and continuously enhance active management capability. It will reach out to the demand for diversified asset allocation via WeFund, tap into the existing assets with REITs and ABS, and seek for incremental growth through cross-border business, so as to cultivate differentiated core competitiveness and enlarge the scale of client assets. Adhering to the “customer-oriented” philosophy and with the investment asset management and the asset management services on investment banking as drivers, the Group will provide one-stop and first-class investment products, asset allocation and overall financial service solutions to empower its customers in their asset management service journey. In respect of the investment asset management business, it will take into account market analysis as well as the customers’ need to continuously market the existing products and launch new products, which cover various strategies and cater for various risk appetites. In terms of investment bank asset management business, it will attach importance to high-quality development, actively seize the new development pattern to upgrade and transform to high-quality asset allocation. In respect of the private equity fund management business, the Group will proactively leverage the guiding effect of patient capital, build a new model of business operation across the board, steadily expand the scale of fund management and continuously enhance the investment management capability. Attention will be paid to the research of key sectors and key regions and efforts will be made to strengthen long-term capital cooperation with large institutions and industrial leaders, expand the layout of strategic emerging industries, and enhance the capacity of industrial integration and M&A. The Group will improve and optimize the post-investment management system, continuously strengthen the ability to diversify the withdrawal from investment projects and continuously increase the level of post-investment management. ![]() 60 In respect of the asset management business of fund companies, the Group will continue to strengthen compliance risk control and management and talent team building. It will upgrade and iterate its digital and intelligent systems and platforms, continue to improve its product layout and investment strategy, and comprehensively promote the product-led business empowerment system and technology-driven core competence construction. By continuously optimizing the all-process and refined customer companion service system, it aims to enhance its core capability in investment research and ability in value creation. In respect of the asset management business of futures companies, the Group will continue to iterate and expand the functions of the digital platform, constantly consolidate the core competitiveness of investment research and operation management, and actively build up derivatives-featured asset management business. It will also continuously enrich the derivatives-featured products system, steadily push forward international development, and make efforts to enhance the cross-border trading service capability and product research capability, so as to guarantee the high-quality development of business. In respect of the alternative investment business, we will constantly improve the system, mechanism and operational process, deepen the construction of the FINTECH ecosystem, and prudently promote the development of equity investment, the follow-on investment on the STAR Market, and other new businesses, and improve capital usage efficiency and return on assets. (V) International business 1. Market environment In 2024, the global economy was experiencing a slow recovery, but featuring with insufficient momentum and divergent growth. Meanwhile, scientific and technological innovations represented by artificial intelligence were speeding up global industrial revolution, which also gave rise to new opportunities and space for development. Thanks to favorable domestic and international policies and optimized market mechanism, the performance of the Hong Kong secondary market showed an overall gradual uptick in oscillations, with the Hang Seng Index up by 17.67% and the Hang Seng Tech Index up by 18.70%. According to the statistics from Wind Information, the turnover in the Hong Kong stock market was HK$24.75 trillion, representing a year-on-year increase of 29.31%. The size of funds raised through IPOs in the Hong Kong primary market experienced strong growth, while the refinancing scale continued to decline. The funds raised through IPOs in the market were HK$88.147 billion, representing a year-on-year increase of 90.24%. The funds raised upon listing were HK$87.513 billion, representing a year-on-year decrease of 7.51%. The US secondary market recorded a strong performance with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq up by 12.88%, 23.31% and 28.64%, respectively. According to the statistics from Wind Information, the turnover in the US stock market was USD111.00 trillion, representing a year-on-year increase of 25.54%. The US primary market showed vitality and an increasing trend of the financing scale. The size of funds raised through IPOs in the market was USD40.811 billion, representing a year-on-year increase of 49.66%. The scale of additional offerings was USD136.056 billion, representing a year-on-year increase of 45.44%. ![]() 61 In recent years, China kept pacing up the high-level opening up in the capital market. With policy innovation and systemic opening up, facilitating reforms of cross-border investment and financing were gradually implemented and cross-border interconnection was deepened. Against the backdrop of the profound restructuring of the global supply chain and the significant growth in the demand of Chinese enterprises to go overseas, the international process of Chinese-funded securities companies has entered a new stage, which have gradually built up a financial service network covering the whole world through systemic layout and regional cultivation. At present, overseas market has become an important area for Chinese-funded securities companies to expand their business presence, secure new growth points and enhance their competitive strength, which also puts forward higher requirements for the management and control ability of Chinese-funded securities companies in integrated domestic and overseas operations. For a securities company that wish to establish a first-class investment bank, it is essential to better serve domestic customers in “going global” and overseas customers in “coming to China”, to participate more in the global and regional financial markets, and to polish core competence in the practice of international competition. 2. Operational measures and achievements During the Reporting Period, as the Group’s holding platform for international business, Huatai International fully aligned to the Group’s whole business chain system, adhered to the customer-centric approach, consolidated its position as a capital market intermediary, and optimized the cross-border comprehensive financial service ecosystem. Relying on the Group’s advantages in platform and digitization, Huatai International improved its management level in all aspects and strictly controlled risks; it steadily pushed forward international layout and continued to build core competitiveness for medium – and long-term development and through cycles, with its influence in the overseas market continued to expand. During the Reporting Period, a subsidiary under Huatai International was granted securities trading code from the Vietnam Securities Market Regulatory Authority, and Huatai Financial Holdings (Hong Kong) registered as a lead underwriter in the Tokyo PRO-BOND market. As of the end of the Reporting Period, all financial indicators of Huatai International ranked steadily among the top tier of Chinese-funded securities firms in Hong Kong. (1) Business in Hong Kong The Group’s business in Hong Kong adhered to its origins as a brokerage firm providing agency service, and with cross-border business as the starting point, built all-dimensional comprehensive cross-border financial service platform systems. Despite the volatile market environment, it continued to deepen its business systems including the equity business platform, fixed-income business platform, wealth management platform, fund and asset management platform and flagship investment banking business with its advanced platform strength and effective risk control capabilities, seeing that a number of business lines leading the industry. For the equity derivatives business, the Group kept upgrading its globalization and all-asset trading capabilities, which has covered major on-market and OTC asset categories, and actively explored markets such as Japan, South Korea, ![]() 62 France, the Netherlands and Sweden; for the stock sales and transactions business, the Group focused on one-stop and comprehensive cross-border financial services on “spot equities + cross-border prime brokerage”, with its long-term fund coverage capability maintaining at a high level, its RMB-HKD dual-currency counter market making business covering all 24 market making subjects, and its market share in terms of turnover continuing to increase, ranking in the first tier of the market; for FICC business, it gave full play to its advantages in market foresight and risk control, led business innovation with customer demand, improved its international layout, and continued to build a platform-driven business ecosystem model, thus realizing cross-market and cross-variety expansion, and preliminarily establishing a 24-hour global trading platform that connects Hong Kong, the United States and Singapore; for the wealth management business, the Group continuously improved online and offline platform-based and integrated operation and strengthened its diversified product sales channels to customers, which has significantly increased the on-market business for high-net-worth customers and obviously optimized the quality of customer acquisition of the “ZhangLe Global” ( 漲樂全球通 ) platform, and it formally launched the “Cross-boundary Wealth Management Connect” business, which has strengthened the effect of cross-border linkage; for the fund business, on one hand, the Group carried out active post-investment management over the private equity investment business, continued to expand its international business and deeply explored high-quality potential investment opportunities, and on the other hand, it continued to push forward business transformation of the asset management business and continuously improved its active management capability and product design and supply capacity, with a number of fund products launched during the year to effectively meet the diversified investment needs of customers; for the investment banking business, the Group closely followed the market dynamics, responded to hot project trends and favorable policies and actively built up core competitiveness through cycles. Based on internal and external statistics and during the Reporting Period, Huatai Financial Holdings (Hong Kong) sponsored seven Hong Kong IPO projects, ranking third in the market in terms of the number of projects sponsored. ![]() 63 (2) Huatai Securities (USA) With the approval of the US Financial Industry Regulatory Authority, Huatai Securities (USA) obtained the broker-dealer license in 2019 and obtained qualification for proprietary trading in 2020. It obtained the business qualification for securities trading with institutional investors in Canada in 2021, obtained market access to major stock exchanges in Europe in 2022 and became an introducing broker for US futures products in 2023. During the Reporting Period, it was qualified as a broker and dealer for US Treasuries and a limited underwriting member of the Nasdaq Stock Market in the United States. During the Reporting Period, Huatai Securities (USA) officially launched its FICC business, actively undertook institutional agency business in Hong Kong area, constantly expanded the variety of products and market channels of FICC trading as an agency for customers and continuously optimized the cross-border linkage and coordination mechanism, providing integrated services to global investors. During the Reporting Period, as an underwriter, as a lead underwriter, Huatai Securities (USA) assisted Haidilao ( 海底撈 ) and Pony.ai to successfully land on the US capital market. (3) Singapore Subsidiary Singapore Subsidiary obtained the licenses on capital market services and the waiver of licensing requirements on wealth management advisory issued by Monetary Authority of Singapore in 2023 and conducts securities trading and corporate financing businesses in Singapore in compliance with laws and regulations. During the Reporting Period, Singapore Subsidiary spared no effort in fulfilling its international development strategy, continued to deepen its international layout, and served the high-level opening up of finance with a cross-border integrated and comprehensive business system. For equity derivatives business, it actively promoted customer access and trading agreement signing and completed the opening of several brokerage accounts. Singapore Subsidiary steadily promoted commodity futures market-making business for the commodity business, and incorporated a number of Southeast Asian countries, including Singapore, as targets for its bond market-making business. For investment banking business, it focused on providing comprehensive financial services and was committed to providing overseas investors with products and services with Chinese characteristics. For wealth management business, it tapped into customers’ needs, actively explored opportunities for cooperation, effectively strengthened brand awareness and market influence, and gave support in expanding customer resources. ![]() 64 3. Prospect for 2025 The Group will fully embark on a new round of international development, build value creation competitiveness as a first-class investment bank, and extend the comprehensive business advantages and core competencies accumulated in the domestic market to the international market, so as to continue to expand new room for development. Huatai International will keep to its international strategy and continue to deepen its global layout. It will constantly tap into customers’ needs, build an integrated service system and create one-stop service capability. Moreover, relying on platform-based operation, it will effectively improve the synergy and efficiency in the full business chain that covers multiple markets, empower business growth with digitization, and strictly control risks in order to increasingly improve market competitiveness and the position in the industry. For the business in Hong Kong, the Group will continue to consolidate its intermediary positioning in the cross-border capital market and provide customers with one-stop financial services. For equity derivatives business, the Group will continue to solidify its business strengths, and leverage its expertise to grasp global business opportunities and strengthen the levels of customer services; for stock sales and trading business, the Group will effectively enhance the breadth and depth of customer coverage, continuously enrich diversified products based on customer needs, and continue to rely on the platform-based strategy to enhance trading capabilities; for FICC business, the Group will promote domestic and overseas integration and build a business ecosystem driven by customer service with market making transaction as the core, product services as the carrier and supported by platform-based systems; for wealth management business, the Group will continue to improve the platform-based operation and system construction for customers, enrich the product trading varieties, establish a customer-centric service ecosystem, and realize the domestic and overseas linkage and coverage of customers; for fund business, the Group will continue to strictly control risks, implement the fund-based business operation and actively seized global market opportunities to constantly improve product system and improve service level; for investment banking business, the Group will give full play to the advantages in onshore and offshore integration, expand the coverage of customers and projects in key areas and proactively capture opportunities in outbound markets such as Southeast Asia. Huatai Securities (USA) will actively seize cross-border business opportunities, continuously expand business layout, constantly improve the business collaboration capabilities and expand the depth and breadth of the coverage over global institutional investors. It will continuously improve stocks and the platform and product systems of the FICC cross-border trading for customers as an agent, actively broaden service radiation channels and provide all-round services to meet the asset allocation and risk hedging needs of global investors. ![]() 65 Singapore Subsidiary will continue to devote itself to enhancing its brand influence in Southeast Asia. For investment banking business, it will further develop the local market, constantly expand the capital market in Southeast Asia, and actively promote the development of its business. For wealth management business, it will improve and optimize its infrastructure and business team to provide customers with comprehensive services, and help realize the appreciation of their investments and the inheritance of their wealth. For institutional business, it will comprehensively broaden its business presence, continuously expand the scope of commodity trading, and enhance the global trading capabilities of Singapore as a regional center. (VI) Digital development 1. Digital finance development strategy Focusing on the technology-based strategic orientation of “building technology as the core competency of the Company”, the Group thoroughly practices the important mission of “creating value by profession”. Following the two main lines of internationalization and intelligence, it speeds up the construction of digital capabilities for international business, works on enhancing the intelligent level of key platforms, continues to promote the iteration and optimization of business platforms, and continues to consolidate the resilience of the digital infrastructure, so as to push forward the digital transformation with high quality. The Group is committed to fully transforming its scientific and technological advantages into the business value by strengthening its strategic coordination and traction, improving its assessment and governance system, cultivating talents in key areas, cementing the root for organizational culture, reinforcing its investment in science and technology innovation, and promoting the in-depth integration of science and technology with its business. 2. Major measures and results in digital transformation during the Reporting Period During the Reporting Period, focusing on the four overall targets of digital transformation, namely, to achieve “client’s success, business innovation, operation optimization and employee empowering”, the Group advanced the intelligent enhancement of its business platform in an orderly manner, focused on empowering the high-quality expansion of its international business, and promoted the Company’s comprehensive digitalization to a new level. In terms of “enabling client’s success”, “ZhangLe Fortune Path” ( 漲樂財富通 ) continued to build the middle platform with financial capabilities, empowered with professional service capabilities in the four areas of investment research, content, marketing and operation, and improved content operation efficiency based on AI capabilities in short video production and live streaming by digital characters. The one-stop institutional customer service platform “Xing Zhi” ( 行 知 ) released version 5.0, focusing on the core demands of four types of key customer groups, and continuing to create intelligent, self-service and personalized platform experience. The Onboarding platform for institutional customers covered the whole process of due diligence, contract signing and account opening, which has achieved full coverage of the business lines of headquarters and overseas institutions. ![]() 66 In terms of “business innovation”, focusing on customer value and market trends, the cross-border prime brokerage platform has created a cross-boundary prime brokerage system that integrates trading, securities financing and risk control capabilities to meet the diversified trading demands of domestic and overseas institutional customers in an all-round way; the FICC trading platform has completed the construction of market-making and customer service capacity with high quality, and preliminarily built a global trading system. In terms of “operation optimization”, the intelligent investment research platform was upgraded with an intelligent research report system through the large model, which has empowered the whole chain of investment research to improve quality and efficiency. The core system of the “Investment Banking Cloud” platform was reshaped, enabling the Group to be the first securities company with a fully self-developed core system in the investment banking sector. The Group upgraded intelligent audit, intelligent Q&A and other AI applications to empower business to improve quality and reduce risk. For the risk management platform, it deepened professional risk quantitative research and management capacity building, and improved platform-based support for international business risk management. In terms of “employee empowering”, “AORTA” ( 聊 TA), the intelligent investment consulting platform, focused on building a classified and stratified customer base operation system and established a supporting team and platform capability base to improve service quality and coverage; “Qing Cloud” ( 青雲 ), the sales management platform for institutional customers, deepened client and employee profiles and continued to promote integrated sales operations at home and abroad with data as the driving force. (VII) Business innovation and its effects on the Company ’ s business performance, future development and risk control During the Reporting Period, the Company constantly carried out business innovation activities, promoted the innovation of business, products, services and management modes, and constantly improved its innovation ability. The development of innovative business is a supplement to the existing product lines and business scope, which can effectively release business space, expand client resources and revenue sources, enhance profitability, as well as improve customer structure and business model, meet customers’ full and diversified business needs, and further enhance brand influence. During the Reporting Period, the Company continued to improve the management mechanism on new businesses and the construction of relevant system functions, paid closer attention to the backtracking and implementation of control measures, enhanced the identification and assessment of new risk points in the course of developing new business, and continuously improved the quality of new business assessment and management. During the Reporting Period, the Company was granted another qualification of “Cross-boundary Wealth Management Connect” business pilot to facilitate cross-border investment by residents of the Guangdong-Hong Kong-Macao Greater Bay Area. It also obtained market-making qualifications for some commodity futures/option varieties on Dalian Commodity Exchange, Zhengzhou Commodity Exchange and Guangzhou Futures Exchange to provide liquidity to the market. Based on the risk ![]() 67 profile of its business, the Company comprehensively identified and evaluated potential business risks and strengthened management and control over key links and key risks, establishing a business risk control mechanism. The Company has formulated various risk control indicators in accordance with its business characteristics to control risk exposure, position limits, etc., and further improved the system construction and control mechanism supporting the market-making business, so as to incorporate the new business into the risk management system and ensure the smooth operation of the business. (VIII) There were no significant changes in the Company ’ s operation status during the Reporting Period and there were no matters that had or expected to have significant influence in the future on the Company ’ s operation during the Reporting Period VI. MAJOR OPERATIONS DURING THE REPORTING PERIOD As of December 31, 2024, on a consolidated statements basis, total assets of the Group amounted to RMB814,270,494 thousand, representing a year-on-year decrease of 10.08%; total equity attributable to shareholders of the Company amounted to RMB191,673,902 thousand, representing a year-on year increase of 7.02%; total revenue, other income and gains amounted to RMB54,285,483 thousand, representing a year-on-year increase of 3.87%; and profit for the year attributable to shareholders of the Company amounted to RMB15,351,162 thousand, representing a year-on-year increase of 20.40%. (I) Main businesses analysis 1. Analysis table of the changes in relevant items of the income statement and the cash flow statement Unit: Thousand Yuan Currency: RMB Item Amount for the current period Amount for the same period of last year Change percentage (%) Total revenue, other income and gains 54,285,483 52,260,421 3.87 Total expenses (41,287,096) (40,640,541) 1.59 Profit before income tax 15,352,340 14,204,664 8.08 Profit for the year attributable to the shareholders of the Company 15,351,162 12,750,633 20.40 Net cash generated from/(used in) operating activities 34,818,437 (28,475,553) N/A Net cash generated from/(used in) investing activities 20,496,121 (6,264,467) N/A Net cash (used in)/generated from financing activities (59,670,326) 17,961,792 N/A Net decrease in cash and cash equivalents (4,355,768) (16,778,228) N/A ![]() 68 2. Revenue, other income and gains As of December 31, 2024, the Group recorded total revenue, other income and gains of RMB54,285 million, representing a year-on-year increase of 3.87%, in which: (1) Fee and commission income recorded a year-on-year decrease of 8.88% to RMB17,259 million, accounting for 31.79%, mainly due to the decrease in income from asset management business, underwriting and sponsorship business. (2) Interest income recorded a year-on-year decrease of 7.21% to RMB13,561 million, accounting for 24.98%, mainly due to the decrease in interest income from margin financing and securities lending. (3) Net investment gains recorded a year-on-year increase of 24.25% to RMB14,501 million, accounting for 26.71%, mainly due to the increase in revenue from the Group’s investment business. (4) Other income and gains recorded a year-on-year increase of 27.45% to RMB8,964 million, accounting for 16.51%, mainly due to the increase in income from sales of bulk commodity of the Group. Unit: Thousand Yuan Currency: RMB Item 2024 2023 Increase/decrease Amount Ratio Amount Ratio Amount Ratio Fee and commission income 17,259,336 31.79% 18,940,982 36.24% (1,681,646) (8.88)% Interest income 13,560,994 24.98% 14,615,232 27.97% (1,054,238) (7.21)% Net investment gains 14,500,758 26.71% 11,670,400 22.33% 2,830,358 24.25% Other income and gains 8,964,395 16.51% 7,033,807 13.46% 1,930,588 27.45% Total revenue, other income and gains 54,285,483 100.00% 52,260,421 100.00% 2,025,062 3.87% ![]() 69 3. Total expenses As of December 31, 2024, the Group’s total expenses were RMB41,287 million, representing a year-on-year increase of 1.59%, mainly due to the increase in other operating expenses, in which: (1) Fee and commission expenses amounted to RMB4,311 million, representing a year-on-year decrease of 0.40%, mainly due to the decrease in expenses of asset management business, underwriting and sponsorship business. (2) Interest expenses amounted to RMB10,856 million, representing a year-on- year decrease of 20.54%, mainly due to the decrease in interest expenses on placements from banks and other financial institutions. (3) Staff costs amounted to RMB10,075 million, representing a year-on-year increase of 7.50%, mainly due to the increase in accrued staff costs of the Group. (4) Other expenses mainly include depreciation and amortisation expenses, tax and surcharges as well as impairment losses under expected credit loss model, net of reversal and other operating expenses. Unit: Thousand Yuan Currency: RMB Item 2024 2023 Increase/decrease Amount Ratio Amount Ratio Amount Ratio Fee and commission expenses (4,310,977) 10.44% (4,328,290) 10.65% 17,313 (0.40)% Interest expenses (10,856,424) 26.29% (13,662,909) 33.62% 2,806,485 (20.54)% Staff cost (10,074,621) 24.40% (9,371,842) 23.06% (702,779) 7.50% Depreciation and amortization expenses (1,774,611) 4.30% (1,856,409) 4.57% 81,798 (4.41)% Tax and surcharges (179,417) 0.43% (187,664) 0.46% 8,247 (4.39)% Other operating expenses (13,844,777) 33.53% (11,644,373) 28.65% (2,200,404) 18.90% Impairment losses under expected credit loss model, net of reversal (246,269) 0.60% 410,946 (1.01)% (657,215) (159.93)% Total expenses (41,287,096) 100.00% (40,640,541) 100.00% (646,555) 1.59% ![]() 70 4. Analysis of segment revenue, other income and gains and segment expenses (1) Analysis of segment revenue, other income and gains Unit: Thousand Yuan Currency: RMB Business segment Segment revenue, other income and gains for the current period Percentage of total segment revenue, other income and gains for the current (%) Segment revenue, other income and gains for the same period of last year Percentage of total segment revenue, other income and gains for the same period of last year (%) Increase or decrease in percentage of total segment revenue, other income and gains as compared to the same period of last year Wealth management business 23,808,741 43.86 23,324,795 44.63 Decrease of 0.77 percentage point Institutional services business 8,169,556 15.05 10,549,352 20.19 Decrease of 5.14 percentage points Investment management business 2,659,847 4.90 3,358,823 6.43 Decrease of 1.53 percentage points International business 18,193,615 33.51 12,941,308 24.76 Increase of 8.75 percentage points Others (including offset) 1,453,724 2.68 2,086,143 3.99 Decrease of 1.31 percentage points During the Reporting Period, on a consolidated basis, the Group recorded revenue, other income and gains of RMB54,285 million in total, representing a year-on-year increase of 3.87%. Among the principal business segments, segment revenue from wealth management business of the Group increased by RMB484 million as compared to the same period of last year, while as influenced by the market, segment revenue from institutional services business and investment management business decreased by RMB2,380 million and RMB699 million as compared to the same period of last year, respectively, and international business segment maintained a favorable growth, with revenue increasing by RMB5,252 million as compared to the same period of last year. ![]() 71 (2) Changes in the scope of consolidation due to changes in shareholding of major subsidiaries during the Reporting Period For changes in the scope of consolidation due to changes in shareholding of major subsidiaries during the Reporting Period, please refer to “24. Investments in subsidiaries” of “Notes to the Consolidated Financial Statements” in “Independent Auditor’s Report and Consolidated Financial Statements” of this report. (3) Analysis on segment expenses Unit: Thousand Yuan Currency: RMB Business segment Segment expenses for the current period Percentage of total segment expenses for the current period (%) Segment expenses for the same period of last year Percentage of total segment expenses for the same period of last year (%) Increase or decrease in percentage of total segment expenses as compared to the same period of last year Wealth management business (17,586,912) 42.60 (16,634,272) 40.93 Increase of 1.67 percentage points Institutional services business (7,172,421) 17.37 (7,907,900) 19.46 Decrease of 2.09 percentage points Investment management business (1,530,117) 3.71 (1,589,098) 3.91 Decrease of 0.20 percentage point International business (11,260,104) 27.27 (10,648,760) 26.20 Increase of 1.07 percentage points Others (including offset) (3,737,542) 0.09 (3,860,511) 9.50 Decrease of 9.41 percentage points In terms of expenses of each business segment as a percentage of total expenses of the Group, expenses of wealth management business and international business segments increased by 1.67 percentage points and 1.07 percentage points, respectively, and expenses of institutional services business and investment management business segments decreased by 2.09 percentage points and 0.20 percentage point, respectively. ![]() 72 5. Information of R&D personnel During the Reporting Period, the Group continued to deepen the strategy on digital transformation, firmly focused on the technology-based strategic orientation of “building technology as the core competency of the Company”, further solidified the construction of technology organizations and constantly established scientific and flexible organizational systems and talent development systems, achieving the quality development of R&D team. As of the end of the Reporting Period, the R&D personnel of the Group amounted to 3,337, representing 19.67% of the total staff of the Group. As of the end of the Reporting Period, the information of R&D personnel of the Group is as follows 1 : Number of R&D personnel of the Company 3,337 Percentage of the number of R&D personnel to the Company’s total number of employees (%) 19.67 Education composition of R&D personnel Education composition category Number of education composition Doctor 15 Master 1,465 Bachelor 1,457 Junior college graduate and below 59 Age composition of R&D personnel Age composition category Number of age composition <30 1,031 ≥30-<40 1,680 ≥40-<50 234 ≥50 51 1 Note: Due to the internal policies of corporations in the United States, the above statistics of education and age composition do not include those of employees of corporations in the United States. ![]() 73 6. Cash flow Unit: Thousand Yuan Currency: RMB Item Amount for the current period Amount for the same period of last year Amount of increase or decrease Percentage of increase or decrease (%) Net cash generated from/(used in) operating activities 34,818,437 (28,475,553) 63,293,990 N/A Net cash generated from/(used in) investing activities 20,496,121 (6,264,467) 26,760,588 N/A Net cash (used in)/generated from financing activities (59,670,326) 17,961,792 (77,632,118) N/A Net decrease in cash and cash equivalents (4,355,768) (16,778,228) 12,422,460 N/A During the Reporting Period, the net decrease in cash and cash equivalents of the Group was RMB4,356 million, in which: (1) Net cash generated from operating activities was RMB34,818 million, representing an increase of RMB63,294 million as compared to the same period of last year, mainly due to the decrease in financial instruments at fair value through profit or loss for the current period. (2) Net cash generated from investing activities was RMB20,496 million, representing an increase of RMB26,761 million as compared to the same period of last year, mainly due to the increase in the proceeds from disposal of financial instruments at fair value through other comprehensive income and the increase in the proceeds from disposal of subsidiaries for the current period. (3) Net cash used in financing activities was RMB59,670 million, representing a decrease of RMB77,632 million as compared to the same period of last year, mainly due to the decrease in cash received from the issuance of long-term bonds for the current period. ![]() 74 7. Detailed description of significant changes in the Group ’ s business types, components or sources of profit Unit: Thousand Yuan Currency: RMB Item Amount for the current period Amount for the same period of last year Year-on-year change (%) Principal reason Total revenue, other income and gains 54,285,483 52,260,421 3.87 Increase in net investment gains, other income and gains Total expenses (41,287,096) (40,640,541) 1.59 Increase in other operating expenses Operating profit 12,998,387 11,619,880 11.86 Increase in total revenue, other income and gains Profit before income tax 15,352,340 14,204,664 8.08 Increase in total revenue, other income and gains Profit for the year 15,518,874 13,036,260 19.04 Increase in total revenue, other income and gains Among which: profit for the year attributable to shareholders of the Company 15,351,162 12,750,633 20.40 Increase in total revenue, other income and gains Item Balance as at the end of the period Balance as at the beginning of the period Year-on-year change (%) Principal reason Total assets 814,270,494 905,508,389 (10.08) Decrease in financial assets Total liabilities 622,376,573 723,290,957 (13.95) Decrease in long-term bonds and financial assets sold under repurchase agreements Total shareholders’ equity 191,893,921 182,217,432 5.31 Realization of profit for the year ![]() 75 (II) Analysis of key items of consolidated statement of financial position 1. General description of consolidated statement of financial position Unit: Thousand Yuan Currency: RMB Item As at December 31, 2024 As at December 31, 2023 Increase/decrease Amount Ratio Amount Ratio Amount Ratio Non-current assets Property and equipment 6,489,412 0.80% 6,519,710 0.72% (30,298) (0.46)% Investment properties 182,131 0.02% 136,284 0.02% 45,847 33.64% Goodwill 51,342 0.01% 3,419,332 0.38% (3,367,990) (98.50)% Land use rights and other intangible assets 2,035,899 0.25% 7,515,260 0.83% (5,479,361) (72.91)% Interest in associates 21,446,915 2.63% 19,496,027 2.15% 1,950,888 10.01% Interest in joint ventures 999,113 0.12% 1,299,405 0.14% (300,292) (23.11)% Debt instruments at amortised cost 40,854,764 5.02% 45,404,582 5.01% (4,549,818) (10.02)% Financial assets held under resale agreements 199,610 0.02% – – 199,610 – Debt instruments at fair value through other comprehensive income 5,938,076 0.73% 15,207,952 1.68% (9,269,876) (60.95)% Equity instruments at fair value through other comprehensive income 125,860 0.02% 124,506 0.01% 1,354 1.09% Financial assets at fair value through profit or loss 5,292,149 0.65% 7,952,021 0.88% (2,659,872) (33.45)% Refundable deposits 33,451,298 4.11% 40,544,278 4.48% (7,092,980) (17.49)% Deferred tax assets 1,591,926 0.20% 702,722 0.08% 889,204 126.54% Other non-current assets 240,951 0.03% 311,789 0.03% (70,838) (22.72)% Total non-current assets 118,899,446 14.60% 148,633,868 16.41% (29,734,422) (20.01)% ![]() 76 Item As at December 31, 2024 As at December 31, 2023 Increase/decrease Amount Ratio Amount Ratio Amount Ratio Current assets Accounts receivable 5,587,233 0.69% 9,743,761 1.08% (4,156,528) (42.66)% Other receivables, prepayments and other current assets 2,880,227 0.35% 2,539,985 0.28% 340,242 13.40% Margin accounts receivable 132,546,005 16.28% 112,341,094 12.41% 20,204,911 17.99% Debt instruments at amortised cost 6,938,958 0.85% 4,712,230 0.52% 2,226,728 47.25% Financial assets held under resale agreements 15,028,791 1.85% 12,460,232 1.38% 2,568,559 20.61% Debt instruments at fair value through other comprehensive income 4,197,477 0.52% 1,054,048 0.12% 3,143,429 298.22% Financial assets at fair value through profit or loss 296,245,608 36.38% 405,127,363 44.74% (108,881,755) (26.88)% Derivative financial assets 9,991,125 1.23% 16,259,881 1.80% (6,268,756) (38.55)% Clearing settlement funds 11,136,758 1.37% 9,129,266 1.01% 2,007,492 21.99% Cash held on behalf of brokerage clients 170,880,569 20.99% 137,210,295 15.15% 33,670,274 24.54% Cash and bank balances 39,521,458 4.85% 46,296,366 5.11% (6,774,908) (14.63)% Held-for-sale assets 416,839 0.05% – – 416,839 – Total current assets 695,371,048 85.40% 756,874,521 83.59% (61,503,473) (8.13)% Total assets 814,270,494 100.00% 905,508,389 100.00% (91,237,895) (10.08)% Current liabilities Short-term bank loans 3,362,980 0.54% 11,478,573 1.59% (8,115,593) (70.70)% Short-term debt instruments issued 28,852,939 4.64% 25,475,507 3.52% 3,377,432 13.26% Placements from other financial institutions 30,113,661 4.84% 39,536,527 5.47% (9,422,866) (23.83)% Accounts payable to brokerage clients 184,586,976 29.66% 144,701,360 20.01% 39,885,616 27.56% Employee benefits payable 4,589,013 0.74% 4,151,439 0.57% 437,574 10.54% Other payables and accruals 75,436,419 12.12% 113,884,799 15.75% (38,448,380) (33.76)% Contract liabilities 104,692 0.02% 177,500 0.02% (72,808) (41.02)% Current tax liabilities 179,973 0.03% 493,520 0.07% (313,547) (63.53)% Financial assets sold under repurchase agreements 121,048,168 19.45% 144,056,149 19.92% (23,007,981) (15.97)% Financial liabilities at fair value through profit or loss 33,474,911 5.38% 43,710,135 6.04% (10,235,224) (23.42)% Derivative financial liabilities 10,943,785 1.76% 16,848,878 2.33% (5,905,093) (35.05)% Long-term bonds due within one year 41,787,436 6.71% 44,803,489 6.19% (3,016,053) (6.73)% Held-for-sale liabilities 75,402 0.01% – – 75,402 – Total current liabilities 534,556,355 85.89% 589,317,876 81.48% (54,761,521) (9.29)% Net current assets 160,814,693 – 167,556,645 – (6,741,952) (4.02)% Total assets less current liabilities 279,714,139 – 316,190,513 – (36,476,374) (11.54)% ![]() 77 Item As at December 31, 2024 As at December 31, 2023 Increase/decrease Amount Ratio Amount Ratio Amount Ratio Non-current liabilities Derivative financial liabilities – – 32,763 – (32,763) (100.00)% Long-term bonds 73,671,381 11.84% 115,012,512 15.90% (41,341,131) (35.94)% Long-term bank loans – – 647,052 0.09% (647,052) (100.00)% Non-current employee benefits payable 6,116,922 0.98% 6,431,780 0.89% (314,858) (4.90)% Deferred tax liabilities 476,548 0.08% 1,960,663 0.27% (1,484,115) (75.69)% Financial liabilities at fair value through profit or loss 6,973,421 1.12% 8,961,031 1.24% (1,987,610) (22.18)% Other payables and accruals 581,946 0.09% 927,280 0.13% (345,334) (37.24)% Total non-current liabilities 87,820,218 14.11% 133,973,081 18.52% (46,152,863) (34.45)% Net assets 191,893,921 – 182,217,432 – 9,676,489 5.31% Shareholders’ equity Share capital 9,027,302 4.70% 9,074,663 4.98% (47,361) (0.52)% Other equity instruments 28,300,000 14.75% 25,700,000 14.10% 2,600,000 10.12% Treasury share (100,545) (0.05)% (1,064,173) (0.58)% 963,628 (90.55)% Reserves 105,753,021 55.11% 102,967,146 56.51% 2,785,875 2.71% Retained profits 48,694,124 25.38% 42,430,731 23.29% 6,263,393 14.76% Total equity attributable to shareholders of the Company 191,673,902 99.89% 179,108,367 98.29% 12,565,535 7.02% Non-controlling interests 220,019 0.11% 3,109,065 1.71% (2,889,046) (92.92)% Total shareholders’ equity 191,893,921 100.00% 182,217,432 100.00% 9,676,489 5.31% ![]() 78 As of December 31, 2024, total non-current assets of the Group amounted to RMB118,899 million, representing a decrease of RMB29,734 million as compared to the beginning of the year, which was mainly due to the decrease in debt instruments at fair value through other comprehensive income, refundable deposits, land use rights and other intangible assets, debt instruments at amortised cost and goodwill of RMB9,270 million, RMB7,093 million, RMB5,479 million, RMB4,550 million and RMB3,368 million, respectively. As of December 31, 2024, total non-current liabilities of the Group amounted to RMB87,820 million, representing a decrease of RMB46,153 million as compared to the beginning of the year, which was mainly due to the decrease in long-term bonds of RMB41,341 million. As of December 31, 2024, total current assets of the Group amounted to RMB695,371 million, representing a decrease of RMB61,503 million as compared to the beginning of the year, which was mainly due to the decrease in financial assets at fair value through profit or loss of RMB108,882 million. As of December 31, 2024, total current liabilities of the Group amounted to RMB534,556 million, representing a decrease of RMB54,762 million as compared to the beginning of the year, which was mainly due to the decrease in other payables and accruals and financial assets sold under repurchase agreements of RMB38,448 million and RMB23,008 million, respectively. 2. Major restricted assets as of the end of the Reporting Period As of the end of the Reporting Period, major restricted assets of the Group totaled RMB179,467,651 thousand, including cash and bank balances, financial assets at fair value through profit or loss, debt investment at amortised cost, debt instruments at fair value through other comprehensive income and interest in associates. Except for the above assets, no major assets of the Group were seized, detained, frozen, mortgaged or pledged so that they could or could not be realized, or could not be used to pay the debts only under a certain condition. There was no circumstance or arrangement under which the major assets were occupied, used or benefited or the disposal of them was limited. 3. Contingent liabilities For contingent liabilities during the Reporting Period, please refer to “58. Outstanding litigations” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. ![]() 79 4. Description of changes in the measurement of assets measured at fair value and prime assets Fair value refers to the price received for selling one asset or the price payable for transferring one liability by a market participant in an orderly transaction on the measurement date. When estimating the fair value, the Group considers the characteristics that the market participants consider when they price the related assets or liabilities on the measurement date (including the asset status and the limitation on selling or using the assets), and adopts the currently available valuation techniques that are supported by adequate available data and other information. The main valuation techniques used include the market approach, income approach and cost approach. The impact of gains and losses of changes in fair value on the Group’s profit during the Reporting Period is as follows: Unit: Thousand Yuan Currency: RMB Item Impact on profit for 2024 Impact on profit for 2023 Financial assets at fair value through profit or loss (3,901,985) 7,235,361 Financial liabilities at fair value through profit or loss 28,452 257,689 Derivative financial instruments (988,058) (6,518,537) Total (4,861,591) 974,513 ![]() 80 5. Structure and quality of assets As of December 31, 2024, total shareholders’ equity of the Group amounted to RMB191,894 million, representing an increase of RMB9,676 million or 5.31% as compared to that as of the end of 2023, which was mainly due to the realization of profit retention by the Group during the Reporting Period. The asset structure of the Group continued to be optimized and the assets maintained good quality and liquidity. As of December 31, 2024, total assets of the Group amounted to RMB814,270 million, representing a decrease of RMB91,238 million or 10.08% as compared to the beginning of the year. Specifically, cash and bank balances, cash held on behalf of brokerage clients and clearing settlement funds of the Group amounted to RMB221,539 million, accounting for 27.21% of the total assets; margin accounts receivable amounted to RMB132,546 million, accounting for 16.28% of the total assets; financial assets at fair value through profit or loss amounted to RMB301,537 million, accounting for 37.03% of the total assets; debt instruments at amortised cost, debt instruments at fair value through other comprehensive income and equity instruments at fair value through other comprehensive income amounted to a total of RMB58,055 million, accounting for 7.13% of the total assets; property and equipment, investment properties and other intangible assets accounted for 1.07% of the total assets. Most of the assets have strong cashability. The Group’s assets have strong liquidity and the asset structure is reasonable. During the Reporting Period, the Group’s debt-to-assets ratio decreased. As of December 31, 2024, the total liabilities of the Group amounted to RMB622,377 million, representing a decrease of RMB100,914 million or 13.95% as compared to the beginning of the year. The debt-to-assets ratio was 69.53% (excluding the impact of customer funds), representing a decrease of 6.52 percentage points as compared to the beginning of the year. As of December 31, 2024, the Group obtained funds through borrowings and debt financing instruments. As of the end of the Reporting Period, the total principal of the placements from other financial institutions of the Group amounted to RMB177,788 million. Details are shown as follows: Unit: Thousand Yuan Currency: RMB Borrowings and debt financing plans As of December 31, 2024 Placement from China Securities Finance Corporation Limited – Placement from other financial institutions 30,113,661 Short-term borrowings 3,362,980 Short-term financing funds payable 28,852,939 Long-term borrowings – Bonds payable 115,458,817 Total principal 177,788,397 ![]() 81 Borrowings and debt financing with a financing maturity of more than one year were RMB115,459 million, accounting for 64.94%. Among them, programs with a financing maturity of one to two years were RMB7,674 million, those with a financing maturity of two to five years were RMB107,755 million, and those with a financing maturity of over five years were RMB30 million. Borrowings and debt financing with a financing maturity of less than one year were RMB62,330 million, accounting for 35.06%. As of December 31, 2024, the Group’s borrowings and debt financing with fixed interest rate were RMB177,788 million. In particular, the balance of short- term borrowings was RMB3,363 million with no long-term borrowings incurred during the year; the balance of placement from other financial institutions was RMB30,114 million; the balance of income receipts with fixed interest rate was RMB15,250 million; the balance of corporate bonds was RMB92,051 million; the balance of subordinated debts was RMB14,402 million; and the balance of foreign debts was RMB22,609 million. As of December 31, 2024, cash and cash equivalents of the Group amounted to RMB56,033 million, of which RMB cash and cash equivalents accounted for 72.92%. As of December 31, 2024, the Group’s short-term bank borrowings included balance of credit borrowings of RMB2,983 million, and that of pledge borrowings of RMB380 million. As of December 31, 2024, the Group had no long-term bank borrowings. 6. Analysis of profitability In 2024, the Group firmly implemented the “two-pronged” ( 雙輪驅動 ) core strategy of wealth management and institutional services under technology empowerment, and constantly unleashed development momentum with its operating results improving steadily. Its comprehensive strength soundly ranked in the forefront of the industry. ![]() 82 7. Explanations on the changes in the scope of consolidation of the statements For details of the explanations on the changes in the scope of consolidation of the statements of the Group, please refer to “24. Investment in Subsidiaries” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. 8. Analysis of income tax policy During the Reporting Period, the Company’s income tax was subject to the Corporate Income Tax Law of the PRC ( 《中華人民共和國企業所得稅法》 ) and the Enforcement Regulations of Corporate Income Tax Law of the PRC ( 《中華人 民共和國企業所得稅法實施條例》 ). The calculation and payment methods of the income tax shall be subject to the Announcement of the State Administration of Taxation on Issuing the Measures for the Consolidated Collection of Corporate Income Tax on Trans-regional Business Operations (Announcement [2012] No. 57 of the State Administration of Taxation) ( 《國家稅務總局關於印發 < 跨地區經營匯 總納稅企業所得稅徵收管理辦法 > 的公告》 ( 國家稅務總局公告 [2012]57 號 )). The income tax rate applicable to the Company and its domestic subsidiaries is 25%. The Company enjoys the preferential policy of calculating and deducting research and development expenses, and the profit tax rate applicable to the Hong Kong subsidiary of the Company is 16.5%. Other overseas subsidiaries of the Company are subject to income taxes at tax rates applicable in their jurisdictions. ![]() 83 9. Analysis of financing channels and financing capacity Financing channels The Company, taking into account the market environment and its own demand, carried out financing in the domestic through stock exchanges, interbank market, counter market and other markets according to relevant policies and regulations. The Company’s short-term financing channels included credit lending, bond repurchasing, short-term corporate bonds, income credential and margin refinancing, etc. The Company’s medium and long-term financing channels include issuing corporate bonds, subordinated bonds and perpetual subordinated bonds, etc. Meanwhile, the Company can also introduce offshore funds through the issuance of overseas bonds and medium-term notes as well as bank loans to support the business development of the Company. Liquidity management policies and measures The Company has always attached great importance to liquidity management. As for funds management, it adhered to the principle of “full amount concentrated, allocated in a unified way, valued by classification and monitored timely”. In terms of management and development strategies, it paid attention to matching business scale with liabilities. Based on reasonable asset allocation and diversified debt financing, the Company ensured reasonable matching of duration, scale of assets and liabilities and proper liquidity. The Company followed the general principles of comprehensiveness, prudency, predictiveness for liquidity risk management according to the centralized management and stratified prevention and control management model, established a liquidity risk management system based on comprehensive risk management framework, set up and improved the liquidity risk management system in line with the Company’s strategy, and implemented liquidity risk management policy with the preference for “steadiness and safety”. The Company ensured there is no liquidity risk that would cause significant impacts on sustainable operation, so as to fully guarantee the steady and safe development of the business of the Company. ![]() 84 To ensure its liquidity safety, the Company has adopted various measures mainly including: 1) constantly improving the capital position management, strengthening the daytime liquidity monitoring system, and enhancing daytime liquidity risk control by keeping abreast of capital usage in business and day-time payment progress in a timely manner, so as to further strengthen liquidity risk prevention and control; 2) strengthening the management for the matching between durations of assets and liabilities and establishing high-quality current asset reserves, ensuring financing to be more diverse and stable; 3) constantly consolidating the construction of the treasury management platform, and strengthening the capabilities of the information system to identify, measure, monitor and control liquidity risks, in order to ensure that the liquidity risks are measurable, controllable and tolerable; 4) analyzing supervisory indicators of cash flow and liquidity risk under certain stress scenarios to evaluate the tolerance level of the Company for liquidity risks and analyzing the stress test results to constantly improve the Company’s response capacity to liquidity risks; 5) continuously strengthening the management on the liquidity risk of subsidiaries and the vertical management on the liquidity risk of overseas subsidiaries to improve subsidiaries’ response capacity to liquidity risks and the Group’s prevention and control of liquidity risks; 6) organizing the formulation, exercise and evaluation of a liquidity risk contingency plan, in order to improve the Company’s emergency capacity for liquidity risks; and 7) improving the liquidity risk reporting system, so as to ensure that the management is able to keep abreast of the Group’s liquidity risk level and management situation. During the Reporting Period, the Company’s liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) continued to meet regulatory requirements and maintained enough safe space. ![]() 85 Analysis of financing capability and financing strategy The Company has operated in compliance with regulations, enjoyed a sound reputation as well as strong capital strength, profitability and debt repayment ability, maintained good cooperation relationships with commercial banks, and had sufficient bank credit. As of the end of the Reporting Period, the total credit line obtained by the Company from commercial banks amounted to approximately RMB720 billion, demonstrating strong short-term and medium-to-long term financing abilities. As of the end of the Reporting Period, after assessment by China Lianhe Credit Rating Co., Ltd., the credit rating of the Company was AAA and the credit rating outlook is stable. After comprehensive assessment by Shanghai Brilliance, the credit rating of the Company was AAA and the credit rating outlook is stable. After comprehensive assessment by Standard & Poor’s, the long-term credit rating of the Company was BBB+ and the credit rating outlook is stable. After comprehensive assessment by Moody’s, the long-term credit rating of the Company was Baa1 and the credit rating outlook is stable. The Company carried out and continuously optimized and adjusted its financing planning by taking into account the market environment and its business demands, to ensure the balance of the Company’s assets and liabilities structure and improve the overall efficiency of capital allocation. Meanwhile, the Company maintained the research on the interest rate and exchange rate markets and utilized corresponding financial instruments to avoid risks. Contingencies and their impact on the financial situation of the Company – ![]() 86 (III) Analysis of industry operation For details of the analysis of industry operation, please refer to “Management Discussion and Analysis and Report of the Board” in this report. (IV) Analysis of investments Overall analysis of external equity investments As of the end of the Reporting Period, the Group’s investment in associates amounted to RMB21,447 million, representing an increase of RMB1,951 million or 10.01% as compared to RMB19,496 million at the beginning of the period; and the investment in joint ventures amounted to RMB999 million, representing a decrease of RMB300 million or 23.09% as compared to RMB1,299 million at the beginning of the period. For details of the overall situation of the Group’s external equity investment, please refer to “25. Interest in associates” and “26. Interest in joint ventures” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” in this report. 1. Significant equity investment of the Company For significant equity investment of the Company, please refer to “24. Investment in Subsidiaries” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. 2. The Company had no significant non-equity investment 3. Financial assets measured at fair value Unit: Thousand Yuan Currency: RMB Item Balance at the end of last year Balance at the end of this year Investment income during the Reporting Period The changed amount of fair value during the Reporting Period Financial assets at fair value through profit or loss 413,079,384 301,537,757 12,075,336 (3,901,985) Equity instruments at fair value through other comprehensive income 124,506 125,860 8,800 (15) Debt instruments at fair value through other comprehensive income 16,262,000 10,135,553 101,101 91,080 Derivative financial instruments (621,700) (952,660) 2,249,924 (988,058) 4. There was no major asset restructuring and integration by the Company during the Reporting Period ![]() 87 (V) Sales of significant assets and equities by the Company during the Reporting Period 1. Transfer of 20% equity interest in Jiangsu Equity Exchange During the Reporting Period, the Resolution on the Transfer of 20% Equity Interest in Jiangsu Equity Exchange Co., Ltd. was considered and approved at the fourteenth meeting of the sixth session of the Board of the Company. The Company proposed to transfer its 20% equity interest in Jiangsu Equity Exchange to Jiangsu Jincai Investment Co., Ltd. ( 江蘇金財投資有限公司 ), and authorized the senior management of the Company to handle relevant matters involved in this transfer in accordance with laws and regulations. After the Reporting Period, Jiangsu Equity Exchange completed the industrial and commercial registration modification procedures for equity change. Currently, the Company’s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, is 32%. 2. Disposal of the entire equity interests in AssetMark Financial Holdings, Inc., a holding subsidiary in the United States During the Reporting Period, the Resolution on the Disposal of the Entire Equity Interests in a Holding Subsidiary in the United States, AssetMark Financial Holdings, Inc., by Way of Direct Agreement was considered and approved at the ninth meeting of the sixth session of the Board of the Company. The Company proposed to dispose of the entire 50,873,799 ordinary shares of AssetMark Financial Holdings, Inc. held by Huatai International Investment Holdings Limited, an overseas wholly-owned subsidiary of the Company, by way of overall disposal through direct agreement. During the Reporting Period, the Company completed the transaction of selling all of its equity interest in AssetMark Financial Holdings, Inc., a holding subsidiary in the United States, and the final transaction consideration under the transaction amounted to USD1,793,301,400. From September 5, 2024, New York time, the Company ceased to hold any equity interest in AssetMark Financial Holdings, Inc. (VI) There was no other major disposal, acquisition, replacement or stripping of assets, or bankruptcy or reorganization, merger or division, restructuring or other similar situations of the Company during the Reporting Period ![]() 88 (VII) Analysis of Key Subsidiaries Unit: Ten Thousand Yuan Currency: RMB Company name Shareholding percentage of the Company Registered capital Total assets Net assets Operating revenue Total profit Net profit Huatai United Securities Co., Ltd. 100% 99,748.00 629,154.58 449,896.34 160,105.40 (32,598.32) (24,398.92) Main businesses: securities underwriting and sponsorship (excluding treasury bonds, non-financial corporate debt financing instruments and financial bond underwriting); financial advisory for securities trading and investment related activities; other businesses approved by the CSRC. Huatai Securities (Shanghai) Asset Management Co., Ltd. 100% 260,000.00 1,040,709.01 946,549.80 174,630.38 113,813.45 88,150.81 Main businesses: securities asset management; publicly offered securities investment funds management. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities) Huatai International Financial Holdings Company Limited 100% HK$ 10,200,000,002.00 HK$ 148,729,969,900 HK$ 24,215,543,900 HK$ 20,063,144,300 HK$ 7,492,978,700 HK$ 7,164,960,800 Main business: holding company Huatai Purple Gold Investment Co., Ltd. 100% 600,000.00 1,156,248.09 955,428.11 (62,071.05) (79,126.43) (58,726.11) Main businesses: equity investment, debt investment, other fund investments associated with equity investment and debt investment; investment consulting and investment management for equity investment and debt investment, and financial consulting. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities) ![]() 89 Company name Shareholding percentage of the Company Registered capital Total assets Net assets Operating revenue Total profit Net profit Huatai Innovative Investment Co., Ltd. 100% 350,000.00 418,911.79 379,660.47 210.64 (17,808.78) (12,550.59) Main businesses: General items: Investment activities with own capital; investment management; hotel management branch operation; fitness and leisure activities branch operation; laundry services branch operation; typing and copying service branch operation; parking lot service branch operation; conference and exhibition service branch operation; tourism development project planning and consultation branch operation; ticketing agency service branch operation. (Except for items subject to approval in accordance with the law, the business activities shall be carried out on their own in accordance with the business license). Permitted items: accommodation service branch operation; catering service branch operation; food sales branch operation; high-risk sports (swimming) branch operation. (Items subject to approval in accordance with the law, the business activities shall be carried out upon the approval of the relevant departments, and specific business items shall be subject to the approval documents or permits of the relevant departments) Huatai Futures Co., Ltd. 100% 393,900.00 6,057,640.16 509,901.11 587,920.16 21,497.77 15,880.09 Main businesses: commodities futures brokerage, financial futures brokerage, futures investment consultancy, asset management and fund sales. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities) Jiangsu Equity Exchange Co., Ltd. 52% 20,000.00 42,719.98 35,179.77 2,575.24 (1,034.64) 244.83 Main businesses: provision of premises, facilities and services for approved listing, registration, custody, trading, financing, settlement, transfer, dividend distribution and pledge of equity interests, bonds, assets and related financial products and financial derivatives of unlisted companies, organization and monitoring of trading activities, issuance of market information, trading of listed products in the trading market as an agent, and provision of consultation services for market participants. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities) China Southern Asset Management Co., Ltd. 41.16% 36,172.00 1,759,833.55 1,267,467.81 752,260.46 312,388.31 235,159.93 Main businesses: fund raising, fund sales, asset management and other businesses approved by the securities regulatory authority under the State Council. Huatai-PineBridge Fund Management Co., Ltd. 49% 20,000.00 385,053.74 227,467.90 231,333.47 97,152.84 72,990.50 Main businesses: fund raising, fund sales, asset management and other businesses approved by the CSRC. ![]() 90 Company name Shareholding percentage of the Company Registered capital Total assets Net assets Operating revenue Total profit Net profit Bank of Jiangsu Co., Ltd. 5.03% 1,835,132.4463 395,181,400.00 31,333,859.70 8,081,500.00 4,126,800.00 3,325,816.13 Main businesses: deposits taking from the general public; granting short-term, medium-term and long-term loans; handling domestic settlements; handing acceptance and discounting of negotiable instruments; issuing financial bonds; acting as an agent for the issue, honoring and underwriting of government bonds and underwriting of short-term financing bills; buying and selling government bonds, financial bonds, corporate bonds; engaging in interbank lending; providing letter of credit services and guaranty; acting as an agent for receipts/payments and insurance business, wealth management, fund sales, precious metal sales, receipts/payments and custody of collective fund trust scheme; provision of safe deposit boxes; handing entrusted deposits and loans; bank card services; foreign currency deposits; foreign currency loans; foreign exchange remittances; currency exchange; settlement and sales of foreign exchange, acting as an agent for forward settlement and sales of foreign exchange; international settlement; proprietary trading and agency for trading of foreign exchange; interbank foreign exchange lending; trading or acting as an agent for trading in foreign currency securities other than stocks; credit investigation, consultation and witness services; online banking, and other services approved by the banking regulatory bodies and relevant authorities. (Businesses that need to be approved by law shall be carried out upon the approval of relevant authorities) Notes: 1. In January 2025, Jiangsu Equity Exchange completed the industrial and commercial registration modification procedures for equity change. Currently, the Company ’ s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, is 32%. 2. The financial data of the Bank of Jiangsu was extracted from the Announcement by Bank of Jiangsu Co., Ltd. on Preliminary Financial Data for the Year of 2024 disclosed by it. ![]() 91 (VIII) Structured entities controlled by the Company The structured entities consolidated by the Group mainly refer to the asset management plans with the Group concurrently serving as the manager or investment advisor and the investor. The Group carries out a comprehensive assessment of whether the Group will be significantly affected by variable returns due to the return which the Group is entitled to for the shares held by it and its remuneration as the manager or investment advisor of the asset management plan, and according to which, determines whether the Group is the main responsible party for the asset management plan. As at December 31, 2024, the Group has consolidated 55 structured entities with its total assets reaching RMB35,722,533,451.62. The book value of the equity of the above consolidated structured entities held by the Group amounted to RMB32,309,061,587.10. In 2024, the Group did not provide financial assistance to the above structured entities. (IX) Other information 1. Establishment and disposal of subsidiaries by the Company during the Reporting Period For details of the establishment and disposal of subsidiaries by the Company during the Reporting Period, please refer to “24. Investment in Subsidiaries” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. 2. The establishment and disposal of the Company ’ s securities branch offices and securities branches during the Reporting Period During the Reporting Period, the Company relocated and renamed 6 securities branch offices, and no securities branch offices were newly established or cancelled; 5 securities branch was newly established and 27 securities branches were relocated and renamed, and no securities branch was cancelled. As of the end of the Reporting Period, the Company has 27 securities branch offices and 248 securities branches. For details, please refer to “Appendix II. List of Branch Offices and Securities Branches” in this report. (1) Relocation and rename of securities branch offices during the Reporting Period No. Name before relocation and change of name Name after relocation and change of name Address after relocation and change of name Issue date of license 1 Fujian Branch of Huatai Securities Fujian Branch of Huatai Securities Units 10D, 10C Block A, Tefang Portman Wealth Center, No. 81 Zhanhong Road, Siming District, Xiamen July 31, 2024 ![]() 92 No. Name before relocation and change of name Name after relocation and change of name Address after relocation and change of name Issue date of license 2 Shandong Branch of Huatai Securities Shandong Branch of Huatai Securities Rooms 2101, 2102, 2103, 2104, Block A, Yinfeng Fortune Plaza, No. 1 West Long’ao Road, Longdong Street, Lixia District, Jinan City, Shandong Province September 3, 2024 3 Yangzhou Branch of Huatai Securities Yangzhou Branch of Huatai Securities 2015, 2016, 2017, 2113, 2114, 2115, 2116, 2117, 2118, 2201, 2202, 2219, 2220, 2221, 2222, 2223, 2224, Block 6, Changjian Square, No.276 Jinghuacheng Road, Hanjiang District, Yangzhou City September 19, 2024 4 Xuzhou Branch of Huatai Securities Xuzhou Branch of Huatai Securities 1-1601, Building 6 (previously 9), Area 3, Financial Service Center, Huaihai Economic Zone, No. 1 Qinjun Road, Yunlong District, Xuzhou City November 1, 2024 5 Zhenjiang Branch of Huatai Securities Securities Branch of Huatai Securities in Huangshan South Road, Zhenjiang Rooms 101, 201, 301, Block 1, Huangshan Yaju, No. 6 Huangshan South Road, Zhenjiang City, Jiangsu Province November 13, 2024 6 Yunnan Branch of Huatai Securities Yunnan Branch of Huatai Securities 2505B-2508, 25/F, China Merchants Bank Tower, No. 1 Chongren Street, Wuhua District, Kunming, Yunnan Province December 26, 2024 (2) Newly established securities branches during the Reporting Period No. Name of Securities Branches Address Issue Date of License 1 Securities Branch of Huatai Securities in Dongguan International Trade Center Room 3303, Building 2, International Trade Center, No. 1 Hongfu East Road, Dongcheng Street, Dongguan City, Guangdong Province January 15, 2024 2 Securities Branch of Huatai Securities in Zhongshan East Road, Ningbo Room 1906, No. 1800 Zhongshan East Road, Shops No. 223 and No. 225 on Songxia Street, Fuming Street, Yinzhou District, Ningbo City, Zhejiang Province January 22, 2024 3 Securities Branch of Huatai Securities in Jianguo Road, Beijing Unit 02, inside 501, 5/F, No. 77, Jianguo Road, Chaoyang District, Beijing April 25, 2024 4 Securities Branch of Huatai Securities in Qingyun Street, Yiwu 1-2/F, Nos. 656, 658, 660, Qingyun Street, Choucheng Street, Yiwu City, Zhejiang Province July 3, 2024 5 Securities Branch of Huatai Securities in Binjiang Avenue, Pudong New District, Shanghai Room 101, 1/F Lobby, No. 12 Dongfang Road, China (Shanghai) Pilot Free Trade Zone December 3, 2024 ![]() 93 (3) Relocation and rename of securities branches during the Reporting Period No. Name before relocation and change of name Name after relocation and change of name Address after relocation and change of name Issue date of license 1 Securities Branch of Huatai Securities in Wenyi North Road, Xi’an Securities Branch of Huatai Securities in Zhuque Street, Xi’an 18/F, Xindi City, CapitaMall, No. 64 West Section of South Second Ring Road, Yanta District, Xi’an City, Shaanxi Province January 8, 2024 2 Securities Branch of Huatai Securities in Zhenzhu South Road, Lishui Securities Branch of Huatai Securities in Zhenzhu North Road, Lishui No. 218-13, Zhenzhu North Road, Economic Development Zone, Lishui District, Nanjing City, Jiangsu Province January 9, 2024 3 Securities Branch of Huatai Securities in Wenchang West Road, Yangzhou Securities Branch of Huatai Securities in Changjian Center, Museum Road, Yangzhou 6-2001, 2002, 2019, 2020, 2021, 2022, 2023, 2024, 20/F, Changjian Center, No. 364 Museum Road, Hanjiang District, Yangzhou City January 9, 2024 4 Securities Branch of Huatai Securities in Wulipai, Yueyang Securities Branch of Huatai Securities in Yueyang Avenue, Yueyang Rooms 1818, 1819, 1820, Building 4, Wanxiang Ruicheng, No. 219 Yueyang Avenue West, Yueyanglou District, Yueyang City January 12, 2024 5 Securities Branch of Huatai Securities in Xinhua East Street, Saihan District, Hohhot Securities Branch of Huatai Securities in Xinhua East Street, Hohhot No. 1, 1-2/F, Orient Restaurant, West Area of Tuanjie Community, Xinhua East Street, Yingxin Road, Xincheng District, Hohhot City, Inner Mongolia Autonomous Region February 1, 2024 6 Securities Branch of Huatai Securities in Taiping South Road, Taicang Securities Branch of Huatai Securities in Taiping South Road, Taicang 1-2/F, Building 1, No. 36 Taiping South Road, Chengxiang Town, Taicang City February 1, 2024 7 Securities Branch of Huatai Securities in Chengde North Road, Huaiyin, Huai’an Securities Branch of Huatai Securities in Fuyu Road, Huai’an Room 101, Block 1, No. 3 Fuyu Road, Economic and Technological Development Zone, Huai’an February 1, 2024 8 Securities Branch of Huatai Securities in Yuncheng West Road, Guangzhou Securities Branch of Huatai Securities in Yuncheng East Road, Guangzhou Units 201, 202, 203, 204, 205, No. 561 Yuncheng East Road, Baiyun District, Guangzhou City February 2, 2024 9 Securities Branch of Huatai Securities in Liuting Street, Ningbo Securities Branch of Huatai Securities in Liuting Street, Ningbo 1-15, 3-29, 3-30, 3-31, 3-32, 3-33, 3-34 of No. 230, Liuting Street, Haishu District, Ningbo City, Zhejiang Province April 16, 2024 ![]() 94 No. Name before relocation and change of name Name after relocation and change of name Address after relocation and change of name Issue date of license 10 Securities Branch of Huatai Securities in Zhongshan East Road, Ningbo Securities Branch of Huatai Securities in Zhongshan East Road Room 1906, No. 1800 Zhongshan East Road, Shops No. 223 and No. 225 on Songxia Street, Fuming Street, Yinzhou District, Ningbo City, Zhejiang Province April 17, 2024 11 Securities Branch of Huatai Securities in Supu Road, Nanchang Securities Branch of Huatai Securities in Yanjiang North Avenue, Nanchang 2# Hotel of Peace International Hotel, Rooms 107, 803 and 804 of Office Building, No. 69, Yanjiang North Road, Donghu District, Nanchang City, Jiangxi Province April 22, 2024 12 Securities Branch of Huatai Securities in Guangrong Street, Shenyang Securities Branch of Huatai Securities in Guangrong Street, Shenyang (0300) No. 23, Guangrong Street, Heping District, Shenyang City, Liaoning Province April 22, 2024 13 Securities Branch of Huatai Securities in Qiushi Road, Hangzhou Securities Branch of Huatai Securities in Xueyuan Road, Hangzhou Units 02/03/04-1, 13/F above ground, Building 9, Huanglong International Center, No.77 Xueyuan Road, Cuiyuan Street, Xihu District, Hangzhou City, Zhejiang Province April 23, 2024 14 Securities Branch of Huatai Securities in Changhong North Road, Xiangyang Securities Branch of Huatai Securities in Hanjiang North Road, Xiangyang Block 1, Wall Street, No. 115 Hanjiang North Road, Fancheng District, Xiangyang City, Hubei Province May 20, 2024 15 Securities Branch of Huatai Securities in Xianxia Road, Changning District, Shanghai Securities Branch of Huatai Securities in Rushan Road, Pudong New District, Shanghai Area A of Ground Floor and Area B of Second Floor, Nos. 229, 231, Rushan Road, China (Shanghai) Pilot Free Trade Zone June 7, 2024 16 Securities Branch of Huatai Securities in Huanshi East Road, Guangzhou Securities Branch of Huatai Securities in Haizhu Plaza, Guangzhou 04, 05, 06, 25/F, No. 13 Qiaoguang West Road, Yuexiu District, Guangzhou City July 17, 2024 17 Securities Branch of Huatai Securities in West Avenue, Zhouzhuang Town, Jiangyin Securities Branch of Huatai Securities in West Avenue, Zhouzhuang Town, Jiangyin No. 628 Zhouzhuang West Avenue, Zhouzhuang Town, Jiangyin City July 22, 2024 18 Securities Branch of Huatai Securities in Renmin East Road, Suining, Xuzhou Securities Branch of Huatai Securities in Suihe North Road, Suining, Xuzhou Southeast Corner, 1/F, Building 2, Business Service Center, New Economic and Technology Park, No. 223 Suihe North Road, Suining County, Xuzhou City, Jiangsu Province August 26, 2024 ![]() 95 No. Name before relocation and change of name Name after relocation and change of name Address after relocation and change of name Issue date of license 19 Securities Branch of Huatai Securities in Zhongxin Avenue, Taizhou Securities Branch of Huatai Securities in Zhongxin Avenue, Taizhou Room 801, Block 2, Yuanjing Center, Baiyun Street, Jiaojiang District, Taizhou City, Zhejiang Province September 3, 2024 20 Securities Branch of Huatai Securities in Tianfu Avenue, Chengdu Securities Branch of Huatai Securities in Tianfu Avenue, Chengdu Nos. 1401 and 04 (self-numbered), 14/ F, Block 1, No. 588 Middle Section of Tianfu Avenue, Hitech Zone, Chengdu City, China (Sichuan) Pilot Free Trade Zone September 11, 2024 21 Securities Branch of Huatai Securities in Middle Renmin Road, Jingjiang Securities Branch of Huatai Securities in Fuyang Road, Jingjiang 101, Block A3, Financial Business District, No. 2 Fuyang Road, Jingjiang City November 1, 2024 22 Securities Branch of Huatai Securities in Heping Road, Xuzhou Securities Branch of Huatai Securities in Qinjun Road, Xuzhou 1-104, Building 6 (previously 9), Area 3, Financial Service Center, Huaihai Economic Zone, No. 1 Qinjun Road, Yunlong District, Xuzhou City November 1, 2024 23 Securities Branch of Huatai Securities in Lianhe Road, Dalian Securities Branch of Huatai Securities in Gangxing Road, Dalian Rooms 01, 02 & 03-1, 13/F, Exchange Square, No. 40 Gangxing Road, Zhongshan District, Dalian City, Liaoning Province November 26, 2024 24 Securities Branch of Huatai Securities in Guobin Road, Yangpu District, Shanghai Securities Branch of Huatai Securities in Feihong Road, Hongkou District, Shanghai Units 2803, 2804, 2805, 2806, Building 1, No. 118, Feihong Road, Hongkou District, Shanghai December 13, 2024 25 Securities Branch of Huatai Securities in Yongle Road, Wuxi Securities Branch of Huatai Securities in Hefeng Road, Wuxi 102-2, 103-2, Building 1, Huiye Business Plaza, No. 32 Hefeng Road, Xinwu District, Wuxi City December 25, 2024 26 Securities Branch of Huatai Securities in Wuluo Road, Wuhan Securities Branch of Huatai Securities in Zhongbei Road, Wuhan Nos. 02, 03, 05, 10, 37/F (42/F of elevator), Block T1, and Part Shop No. 7, 1/F, Block T3, Phase II of Changchenghui, No. 9 Zhongbei Road, Wuchang District, Wuhan City, Hubei Province December 25, 2024 27 Securities Branch of Huatai Securities in Huanghe Road, Shanghai Securities Branch of Huatai Securities in Longqi Road, Xuhui District, Shanghai Rooms 0101 & 0102, 1/F, and Room 0501, 5/F (actually 4/F), Block 1, No. 158, Longqi Road, Xuhui District, Shanghai December 31, 2024 ![]() 96 3. Standardization of accounts such as unqualified accounts, judicially frozen accounts, risk disposal accounts, and pure fund accounts As of December 31, 2024, the Company had 3,929 unqualified securities accounts, 3,744 judicially frozen securities accounts, 82,229 risk disposal securities accounts, and 753,972 pure capital accounts. Account standardization has reached the following quality standards: (1) Except for restricted use of dormant securities accounts, remaining unqualified securities accounts, judicially frozen accounts, risk disposal accounts, etc., the accounts engaging in normal trading activities are all qualified accounts. (2) Regular comparison of funds and securities account information was made to verify the consistency of key information such as customer names and numbers to prevent the addition of unqualified accounts. Key information inconsistencies due to special circumstances such as differences in information rules between the depository bank and the registered company or unusual word processing have been explained on a case-by-case basis. Relevant measures for long-term and standardized management of accounts: (1) The daily management of accounts was strengthened and the real-name system requirements for account business were strictly implemented. Through face recognition technology, combined with ID card readers, public security network verification, mobile phone number verification by relevant operator, the Group has strengthened investor identity information identification, continued to innovate account management measures and improve standard long-term management mechanisms of accounts. (2) Based on the construction of the Company’s comprehensive account management system, the Group has solidified the service support capabilities of its operation stack. The Group continuously optimized its integrated management platform of customers’ basic information and its integrated agreement management platform, upgraded customers’ file management system, strengthened the management of business handling files of customer accounts through Internet channels, and continued to do its best in the physical and electronic management of customer account business files. VII. DISCUSSION AND ANALYSIS OF THE COMPANY’S FUTURE DEVELOPMENT (I) Competition landscape and trend of the industry At present, China is facing global changes interwoven with a new round of technological revolution, industrial reshaping and economic transition, while the transformation of old growth divers of the macro economy and industrial development into new ones is speeding up. With the release of the new guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market ( 新 “ 國九條 ”) and the “1+N” policy system, the capital market has entered a new stage of comprehensive deepening of reform, accelerating high-quality development on the basis of strong supervision and risk prevention. The key role and pivotal function of the capital market will become more prominent in promoting the development of new productive forces, supporting the construction of a modernized industrial system and serving the high-quality development of the real economy, and the securities industry will usher in a new round of opportunities for transformation and development. At the same time, there are multiple complexities and uncertainties in global economic performance and financial market development, which will also bring new challenges to the development of the securities industry. ![]() 97 First, a new round of reform and opening-up in the capital market will push the securities industry into a new stage of high-quality development. The new guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market ( 新 “ 國九條 ”) outlines the reform blueprint, the meeting of the Political Bureau of the CPC Central Committee proposes to “vigorously boost the capital market”, and the central bank introduces two innovative monetary policy tools and a series of other key policies, which will effectively solidify the institutional foundation for the long-term healthy development of the capital market, and promote a positive cycle of “capital-investment-assets”. In the process of accelerating the reform and opening-up in the capital market and deepening comprehensive reform in investment and financing in the capital market, the high-quality development of the securities industry has accelerated and expanded in depth, and the financial functions of the “service provider” for direct financing, the “gatekeeper” for the capital market, and the “manager” of social wealth will be more fully utilized. Guided by the policies of differentiated and classified supervision, including building first-class investment banks and investment institutions, and optimizing the calculation of risk control indexes of securities companies, high-quality securities companies will embrace an effectively expanded room for capital, whose efficiency of capital utilization will be significantly enhanced, and such companies will become better and stronger through business innovation, organization innovation, M&As and reorganization, etc.; small and medium-sized securities companies will rely on their own resource endowments and professional capabilities to achieve specialized and differentiated development. Second, the transformation and upgrading of business models has placed higher demands on the core professional competence of the securities industry. Under new policies and market environment, the underlying logic of the capital market and the development of the securities industry is undergoing profound changes. It is more important for securities companies to adhere to the customer-oriented philosophy, deeply cultivate the differentiated and diversified needs of customers, continue to make efforts in optimizing and upgrading the business and service models as well as improving and polishing the core competencies, and strive to promote transformation in several aspects: in terms of enterprise customer services, based on the logic of industrial development, securities companies should enhance their insights into underlying assets, build multi-product and multi-market comprehensive service capability systems around the objective needs of the entire lifecycle of enterprises, and help enterprises to grow and expand; in terms of institutional customer services, securities companies should fully integrate their business resources, enhance their investment research and pricing capabilities, and more fully satisfy the needs of institutional investors for comprehensive financial services; in terms of wealth customer services, securities companies should continue to strengthen their buyer-side investment advisory business models and provide more professional and high-quality trading and asset allocation services, so as to create professional values in different cycles for their customers. On this basis, a more balanced business structure and stronger risk prevention capabilities will become the cornerstone for the stable development of securities companies. ![]() 98 Third, technology empowerment and digital transformation will facilitate the reform of the development model of the securities industry. Digital transformation has become a core driver for reforms in the operation, service and business models of brokers. Currently, the accelerated development of artificial intelligence technology represented by generative AI is reshaping the service model and underlying logic of the securities industry. The securities industry is entering a new era in which technology empowers profound changes in business development and management operations. Against the backdrop of continuous enrichment and popularization of artificial intelligence and other new technological application scenarios, the promotion of comprehensive digitization and greater intelligence of the front, middle and back ends with data elements as the underlying driver will bring about an all-round reshaping of the upgrading of business models, innovation of business models and enhancement of management efficiencies for securities companies. Digital transformation has become an irreversible trend in the securities industry. Promoting the in-depth integration of technology with business development will become an important tool for securities companies to enhance their value creation and market competitiveness. Fourth, enhanced international deployment and expansion will open up new development opportunities for the securities industry. In recent years, with the development and transformation of China’s economy, Chinese enterprises are accelerating their overseas deployment and actively promoting global capital operations, and the global asset allocation for residents’ wealth and institutional investors has also become a major trend, resulting in the continuous growth of customers’ demand for cross-border investment and financing. At the same time, the policy efforts for high-level financial openness are increasing, the two-way opening of markets, products and institutions is continuously advancing, and a number of policies and initiatives, such as the improvement and deepening of the interconnection mechanism of the capital market and the implementation of the “Cross-boundary Wealth Management Connect” pilot, have been successively introduced, all of which provide favorable conditions for the deepening of the cross-border business development and the international deployment of securities companies. Putting more effort into the development and deployment of overseas business and continuously enhancing core capabilities when participating in international market competition have become the inevitable direction and important choice for building a first-class investment bank. ![]() 99 (II) The Company ’ s development strategy 1. Strategic vision: Striving to become a first-class investment bank with both domestic advantages and global influence. 2. Service philosophy: Being customer-oriented, and upholding “One Customer” internally and “One Huatai” externally, to be accountable to all clients, shareholders, staff and society to achieve harmony and unity. 3. Strategic orientation: By adhering to the development philosophy of serving the country and people as a financial institution and the idea of customer orientation, focusing on its principal business of capital market services, the Group adheres to the right path and seeks for innovation, pursuing advancement in the course of revolution, and devoting efforts to creating a brand-new business model of two-pronged, cross-border linkage and ecological interaction of wealth management and institutional services with technology empowerment; enhancing platform-based, integrated and international development; implementing a differentiated competitive tactic of “investment banking gene + full business chain” to build core competitiveness of future-oriented and cycle-spanning digital and intelligent development and develop significant leading edge and brand influence in key customer groups, key industries and key regions with an commitment to being a pioneer of industry reform and innovation and a promoter of sustainable development; maintaining its industry-leading position in terms of quality development, better performing the strategic responsibilities to serve the quality development of the real economy and finance, facilitate the construction of modern industry system and create professional an social value. (III) Business operation plan Please refer to “Management Discussion and Analysis and Report of the Board” in this report. (IV) The Company ’ s capital needs to sustain the current business and complete the ongoing investment projects During the Reporting Period, all businesses of the Company were carried out in an orderly manner. Due to its business nature as a securities company, the Company has a huge capital demand, which changes with market fluctuations. The Company continuously enhances capital management, improves efficiency in resources allocation, constantly diversifies financing varieties, expands financing channels and reasonably arranges financing maturity to guarantee the capital needs for various businesses. As of the end of the Reporting Period, the total balance of onshore and offshore long-term and short-term borrowings, bonds payable, short term financing funds payable, placement from other financial institutions and financial assets sold under repurchase agreements of the Company was RMB298.837 billion. The Company will continue to enhance onshore and offshore capital management and select appropriate financing instruments to raise funds based on the needs in business development. It will continue to explore new financing varieties and methods, improve the financing capability and optimize the capital structure of the Company to guarantee the fund demand for business development. ![]() 100 (V) Potential risks 1. Overview of risk management The Company attached great importance to risk management. According to regulatory requirements and the actual situation of business development, the Company established a relatively comprehensive overall risk management system based on the core concepts of full staff engagement, full coverage and full penetration. The Company has a solid and effective risk management framework with clearly defined responsibilities and staff at all levels performing their duties effectively; the Company worked out a risk appetite and tolerance system, which is organically integrated with the development strategy, and established a multi-level comprehensive risk management system covering all aspects of business operation and management; in addition, the Company vigorously promoted the construction of group-wide risk-management technology system and established centralized, time-based, quantitative and penetrable pillars for risk management technologies, to improve the effectiveness of risk management of the Group and further strengthen the Group’s overall risk identification, quantitative evaluation and risk control capabilities. The Company incorporated its subsidiaries into the overall risk management system of the Group and explored the construction of an effective risk management model for subsidiaries. The overall risk management system of the Company ran effectively, which earnestly guaranteed the continuous and healthy development of various businesses of the Company. During the Reporting Period, the Company focused on the eternal theme of risk prevention and control, and comprehensively promoted various risk management efforts under the guidance of its internationalization strategy. The Company insisted on focusing on key businesses and high-risk areas, strengthened the effectiveness of the implementation of key risk control measures, built risk management capabilities that go deep into the essence of the business, and enhanced the foresight capabilities in risk identification and prevention and mitigation, so as to safeguard the high-quality and smooth development of its business. The Company continued to consolidate and improve its risk management system and mechanisms, enhanced its risk management and control capability in the whole business process, deepened the capital-intensive orientation, strengthened the traction of risk management assessment, and promoted the risk culture of moving forward with steady progress. The Company integrated the strength of science and technology, comprehensively upgraded its risk management platform, further built a risk measurement capability base, and enhanced its ability to monitor and accurately measure risks in a forward-looking manner. ![]() 101 2. Risk management structure Board of Directors Supervisory Committee Senior Management Chief Risk Officer All Branches All Subsidiaries Risk Management Department Capital Operation Department Information Technology Department Other Departments Other Professional Risk Management Department Strategic Development Department The risk management organizational structure of the Company covers five major parts: the Board and Compliance and Risk Management Committee; Supervisory Committee; the Senior Management; Risk Management Department and other risk management departments; other departments, branches and subsidiaries. The Board is ultimately responsible for overall risk management and is responsible for reviewing and approving the basic system relating to the overall risk management of the Company, approving the risk appetite, risk tolerance and major risk limits of the Company, and reviewing periodic risk assessment reports of the Company. The Compliance and Risk Management Committee is set up by the Board to undertake risk management responsibilities including reviewing and making recommendations on overall risk management targets and fundamental policies; evaluating and making recommendations on the risks of major decisions which require the Board’s review, as well as the solutions to these risks; reviewing and making recommendations on risk assessment reports which require the Board’s review. The Supervisory Committee of the Company is responsible for supervising overall risk management, supervising and inspecting the Board and the senior management on the performance of their duties of risk management, and urging them to make rectifications. Based on the authorization and approval of the Board and the operation objectives of the Company, the senior management is specifically responsible for the implementation of risk management and assumes the primary responsibility for overall risk management. The chief risk officer of the Company is responsible for leading the overall risk management of the Company. ![]() 102 The Company appoints the risk management department to perform the overall risk management duties and take the lead in managing the market risk, credit risk and operational risk of the Company; appoints the capital operation department to take the lead in managing the liquidity risk of the Company; appoints the information technology department to take the lead in managing the information technology risk of the Company; and appoints the strategic development department to take the lead in managing the reputation risk of the Company. Other departments, branches and subsidiaries of the Company are responsible for the management of various risks in their respective lines, implementing various policies, procedures and measures formulated by the Company and each risk management department, accepting guidance from each risk management department and assigning the risk management duties and implementation responsibilities. The audit department incorporates overall risk management into the audit scope, makes independent and objective reviews and evaluation on the adequacy and effectiveness of overall risk management, and is responsible for taking the lead or entrusting external professional institutions to evaluate the overall risk management system of the Company regularly. 3. Market Risk Market risk refers to the risk of asset loss of the Company resulting from fluctuations in risk factors, including stock prices, interest rates, exchange rates and commodities. During the Reporting Period, the global capital market fluctuated significantly due to the combined effects of multiple complexities. The Company adhered to the concept of value creation through trading and risk control through hedging, actively controlled its risk exposure and managed the market risk of holding assets through various risks control measures. The Company continuously optimized the unified risk limitation system and controlled business risks from various aspects, such as Market Value at Risk (VAR), stop-loss, stress testing, sensitivity, etc. The Company continued to improve its stress testing system and regularly calculated the impacts of various extreme risks, identified and evaluated tail risk resilience. In respect of investments in equity securities, given market volatility, the Company managed market risks through various manners such as risk exposure control, derivatives hedging and diversification of investment subjects, and actively explored trading opportunities while ensuring the risks of assets controllable. In respect of fixed-income securities investment, the Company effectively hedged market risk with interest rate derivatives and adjusted the position structure to respond to the impacts of interest rate fluctuations on the term and structure of investment portfolios, and actively sought opportunities for pricing deviations to enhance overall income while controlling overall duration, basis point value and VAR value. In respect of derivatives business, the Company adopted market neutral strategy for the OTC derivatives business and controlled the Greeks values (such as Delta, Gamma, Vega, etc.) exposure risks within acceptable limits. It created profit opportunities with risks under control. ![]() 103 Market Value at Risk (VAR) of the Company Unit: Ten Thousand Yuan Currency: RMB Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method The Company The Group As at the end of 2024 As at the end of 2023 As at the end of 2024 As at the end of 2023 Equity-sensitive Financial Instruments 6,466 7,448 14,184 11,140 Interest-sensitive Financial Instruments 4,844 4,092 4,813 4,147 Commodity-sensitive Financial Instruments 1,369 989 1,958 957 Overall Portfolio Risk Value 7,757 7,731 14,140 10,821 Source: Internal statistics of the Company. During the Reporting Period, Sequence Descriptive Statistics of Market Value at Risk (VAR) of the Company Unit: Ten Thousand Yuan Currency: RMB Forward-looking Period: 1 day; Confidence: 95%; Historical Analogical Method At the beginning of the period At the end of the period Maximum value Minimum value The Group 10,821 14,140 17,868 8,358 The Company 7,731 7,757 14,038 5,983 Source: Internal statistics of the Company. ![]() 104 4. Credit risk Credit risk refers to the risk of loss of the Company that may result from the default of a financing party or issuer or counterparty in financing, investment, trading and other businesses. During the Reporting Period, amidst the volatile macro-economic situation at home and abroad, market competition within the industry intensified. The Company kept abreast of regulatory policy developments and continued to strengthen the whole process of credit risk management to ensure the smooth development of its business. During the Reporting Period, the Company’s exposure to credit risk was generally controllable and no significant credit risk events occurred. With respect to financing business, the Company implemented stringent management measures through continuous monitoring over risky customers and risky assets and timely risk mitigation. It optimized the response mechanism for individual stock delisting risks, intensified the management of business counter-cyclical adjustments, flexibly adjusted the risk structure of the business to keep routine business risks under control and prevent bottom-line risks. With respect to investment business, the Company continued to optimize and improve the unified management system and systematic construction of credit bond subjects for the Group’s various business lines. It strengthened the whole process management measures such as access management, analysis and pre-warning of bond positions, and normalized screening and disposal of risky securities, while at the same time, it adjusted the risk management plan in a timely manner according to changes in the regulatory policies of the key industries, so as to enhance the effectiveness of the Group’s prevention and control of credit risks exposed by issuers. With respect to trading business, the Company constantly optimized and improved the unified management system and systematic construction of counterparties at the Group level by implementing strict counterparty credit management mechanism. It strengthened continuous monitoring during the duration and annual review mechanism, and enhanced the effectiveness of risk management in the whole process of the business. With respect to guaranteed settlement business, the Company continued to improve the front-end control and promote the systematic construction of the design of risk indicators, and strengthened the ability of risk event handling and risk transmission management. 5. Liquidity risk Liquidity risk refers to the risk that the Company cannot obtain sufficient funds at reasonable costs in time to repay due debts, perform other payment obligations and meet the capital requirements for carrying out businesses as normal. The Company has always attached importance to liquidity safety, preferred a “sound and safe” liquidity risk preference, followed the general principle of comprehensiveness, importance, applicability, effectiveness, prudence and foresight, and continued to strengthen the identification, measurement, monitoring and control mechanisms of liquidity risks through a management model of centralized management and stratified prevention and control, to improve the Company’s liquidity risk management level. On the basis of controlling overall liquidity risks, the Company identified potential liquidity risks of all business lines from the source by new business evaluation process and regular analysis ![]() 105 of existing liquidity risk, and proposed targeted control measures. The Company has established a liquidity indicator analysis framework including cash flow, and appropriately set risk limits and implemented daily monitoring through the information technology system, to improve monitoring frequency and control level of liquidity risks. The Company regularly and occasionally conducted special stress tests on liquidity risks, and took targeted measures to improve the Company’s liquidity risk resilience. In order to ensure that liquidity needs can be met in a timely manner under stress, the Company has established a high-quality liquid asset reserve of an appropriate scale based on risk preferences. At the same time, it has expanded its debt financing channels and quotas from multiple perspectives, and continued to improve the Company’s general and emergency financing capabilities. The Company established liquidity risk emergency plans, carried out regular drills and continuously improved its liquidity risk emergency managing mechanism according to the Company’s condition. In addition, the Company constantly strengthened its subsidiary liquidity risk management with the consolidation supervision pilot as an effective means, to improve the subsidiaries’ response capability to liquidity risks and the Group’s prevention and control level of overall liquidity risks. During the Reporting Period, the Company’s liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) continued to remain at a level that can meet regulatory requirements and far beyond the safety requirements. 6. Operational risks Operational risk refers to risk on losses caused by inadequate or problematic internal procedures, personnel, information technology systems and external events. During the Reporting Period, the Company comprehensively promoted the implementation of the Guidelines on Operational Risk Management for Securities Companies within the Group, revised internal systems, optimized and improved the supporting management mechanism, strengthened collaborative management of operational risks and internal information sharing, and continued to improve the operational risk management system. The Company focused on important businesses and major areas to carry out assessments and inspections, strengthened the identification of operational risk points and processes with inadequate control, and enhanced the quality and efficiency in discovering issues and preventing risks; it organized to sort out business continuity plans and emergency response plans, and carried out emergency response drills to further improve the Company’s level of ensuring business continuity; and it continued to optimize the construction of systems and platforms, consolidate the platform-based control system and enhance the ability of closed-loop control and management of operational risks. ![]() 106 7. Compliance risk Compliance risk refers to exposure to property loss or business reputation loss as a result of bearing legal responsibility, supervisory measures or disciplinary sanctions imposed on securities companies due to violation of laws, regulations and standards by operational management or professional conduct performed by securities companies or their employees. During the Reporting Period, the Company thoroughly implemented the new guideline on strengthening regulation, forestalling risks and promoting the high- quality development of the capital market ( 新 “ 國九條 ”) and the “1+N” policy requirements on the capital market, continuously optimized the compliance management system from system, concept, method and other dimensions, and made efforts to realize the work objective of “seeing clearly, managing well and doing a good job” by preventing minimal risks at an early stage, so as to continuously build a core competitive advantage in compliance. The Company strengthened business synergy in support of business innovation and enhanced understanding of business nature to facilitate the stable implementation of new business and new models; it enhanced compliance inspections to focus on key business and key processes and follow up on the implementation of corrections; it improved the Group’s integrated compliance management mechanism, especially for overseas subsidiaries, and strengthened compliance synergy and control among Group members; it comprehensively promoted the ability development of stereoscopic compliance and digital compliance system, built a base for professional and efficient digital compliance capacity, and further enhanced the internal research level for core systems; it built a long-term management and control mechanism for clean and compliant business development by carrying out warning education and integrity and compliance culture construction for all employees in key lines and positions, improved the system and regulations on employees’ investment behavior by clarifying management responsibilities in accordance with the principle of “whoever manages, whoever is responsible for”, enhancing internal monitoring and self-inspection and self-correction by technical means, optimizing the closed-loop accountability mechanism and ensuring that non-compliant behavior will be handled strictly with “zero tolerance”; it further established the lawyer team to raise the execution quality of cases agency and litigation preservation; and it continuously enhanced the capacity of the compliance personnel team, so as to better empower the business development in a compliant manner and enhance the ability to create compliance value. 8. Money laundering risk Money laundering risk refers to the risk from the utilization of the Company’s products or services by criminals to engage in money laundering activities, terrorist financing and other activities, which lead to negative effects on the Company in terms of operation, reputation, compliance and other aspects. During the Reporting Period, the Company strictly fulfilled the anti-money laundering and counter-terrorist financing obligations of financial institutions and thoroughly implemented the new Anti-Money Laundering Law and the work requirements of the relevant regulatory authorities. It incorporated money laundering risks into the comprehensive risk management system, organized to carry out self-assessment of the Company’s exposure to money laundering risk, ![]() 107 revised the Company’s internal control system for anti-money laundering in accordance with the latest amended anti-money laundering laws and regulations, and improved classification and categorized management mechanism of customer money laundering risk. Furthermore, the Company organized and implemented customer due diligence, preservation of customer identification information and transaction records, suspicious transactions reporting, monitoring on money laundering and sanctioning risk lists, etc. It also promoted the upgrading and renovation of the anti-money laundering system by digital means, and continued to improve the suspicious transaction monitoring system. Meanwhile, the Company launched anti-money laundering publicity and training in various forms, strengthened internal supervision and inspection, and continued to enhance the level of money laundering risk management. 9. Information technology risk Information technology risk refers to exposure to losses caused by the failure of the network and information system to ensure the stable, efficient and safe operation of transaction and business management in terms of business realization, timely response, solving capacity and network and data security, resulting from service capability abnormality or data damage and leakage out of internal or external reasons. The Company establishes and improves its information technology risk management system, and keeps improving the information technology risk management mechanism. During the Reporting Period, the Company strengthened risk prevention and control in key areas, carried out in-depth investigation and remediation of hidden dangers, continuously enhanced risk monitoring and early warning, and solidly promoted the publicity of risk culture to further enhance its information technology risk management capability and effectiveness. The Company comprehensively implemented the network security accountability system and established and improved network and information security technology guarantee system. The Company formulated an emergency management system for network security incidents, established and continuously improved the contingency plan for information system emergencies, and regularly organized drills. During the Reporting Period, the Company held firm to the bottom line of security, and important information systems operated smoothly, thus providing a solid guarantee for the successful development of the Company’s businesses. 10. Reputational risk Reputational risk refers to the risk of negative publicity from investors, issuers, regulators, self-regulatory organizations, the public and the media on the Company due to its actions or external events and violations of integrity regulations, professional ethics, business norms and conventions by its staff, thereby damaging its brand value, disadvantaging its normal operation, and even affecting the market stability and social stability. During the Reporting Period, the Company’s reputational risk management mechanism was running steadily without the occurrence of any significant reputational risk events. Focusing on its strategy and key business, the Company continued to intensify its precaution, monitoring and handling reputational risks, ![]() 108 which created a good public sentiment for the Company’s development. At the same time, the Company continued to strengthen group management, prior management and fast response mechanisms, further enhancing its awareness on preventing and the ability on response to reputational risk. 11. Model risk Model risk refers to the risk of adverse consequences or loss to the Company’s business resulting from incorrect or inappropriate model design, development or use. During the Reporting Period, the Company continued to improve risk management mechanisms based on the life cycle of models and constantly promoted model risk management and control by approaches and measures including model validation, assessment and monitoring during events. The Company continuously developed and improved the model risk management system adaptive to its own business development while optimizing the model information database, and established the function of model version number management based on the platform. During the Reporting Period, the Company had no major model risk events. 12. Implementation of overall risk management of the Company during the Reporting Period The Company attached great importance to overall risk management. Adhering to the risk management culture on stability and long-term development and with controlling risks, improving efficiency and promoting development as the targets of risk management, the Company sticks to the core risk management idea with high engagement, full coverage and deep penetration and the management approach of collectivization, specialization and platformization and continuously enhances the core competitiveness on risk management. For the full coverage of risks, the comprehensive risk management of the Company covers all domestic and overseas subsidiaries, branches and business lines for major risk types. The Company raised clear requirements to subsidiaries on issues including the construction of the risk management system, risk management policies and indicator system, risk management personnel allocation and assessment and risk reports, and set up differentiated rules for risk management. All risk management departments of the Company fulfilled the management responsibility on market risk, credit risk, liquidity risk, operational risk, reputational risk and information technology risk through in-depth linkage and conducted risk identification, prudent assessment, dynamic monitoring, and timely reporting and response for all risks and businesses before, during and after each operation. For the surveillance of risks, the Company continued to improve the promptness and accurate presentation of risk surveillance and analysis. The Company further implemented its business strategies, continued to deepen the multi-dimensional and multi-layered risk limitation system with top-to-bottom breakdown and bottom-to-top summarization and achieved accurate calculation, dynamic monitoring and timely alarming on risk indicators through platformization to speed up in realizing integrated and real-time risk monitoring in the Group. ![]() 109 For the measurement of risks, the Company continuously improved the model risk management to develop core technological competitiveness on risk measurement. The Company carried out evaluation and verification of valuation model and risk measurement model, and continuously perfected and iterated the measurement model and built the bottom of technological competence to improve the accuracy of measurement results and provide measurable technological and fundamental guarantees for risk management. For the analysis of risks, the Company established and improved a multi-level risk reporting system, and further strengthened the breadth and depth of risk analysis, so as to ensure the timely and effective transfer of risk information among various levels and departments. The Company increased investment in pressure tests, continued to improve the establishment of the pressure test system and systematic functions, enriched pressure test factors and scenario library, optimized analysis function, further integrated and consolidated the bottom capability on pressure test. For risk response, the Company has, based on risk monitoring and analysis results, formulated certain response strategies including risk avoidance, reduction, transfer and tolerance matched with different risk appetites and established reasonable and effective response mechanisms on asset impairment, risk hedging, capital supplement, scale adjustment, asset and liability management. At the same time, the Company developed practical risk and crisis response mechanisms and schemes and continuously improved them through regular exercises to enhance the capability of the Company on preventing, reacting and resolving risks. The Company continued to consolidate the systematic implementation of front-end control and achieve process-based rules and platform-based processes to practically prevent risks. The Company provided sufficient support and protection for its comprehensive risk management in aspects of cultivating a culture, developing policies, increasing investment, improving the system and recruiting talents. The Company continued to carry out themed training on risk management and risk management culture publicity activities covering all employees and intensified efforts in the publicity and penetration of risk management and the depth of reaching among all employees. The Company further implemented and optimized risk management assessments, giving full play to the guiding role of risk assessment. The Company established a three-dimensional risk management system covering basic systems, management guidelines and implementation rules and developed a regular evaluation and revision mechanism for the system, through which the implementation of the system was included into risk assessment. The Company attached great importance to risk management and information technology system construction, and implemented guarantees of resources on risk management and the establishment of systems. It adhered to the concept of digital transformation, accumulated risk management capability through systems and platforms and continuously established a cross-border and integrated platform for risk management with group-wide coverage and deep penetration, empowering risk management. The Company intensified its efforts in training and engaging risk management personnel, enabling the risk management personnel of the Company continuously meet regulatory requirements. ![]() 110 13. The investment of the Company in compliance risk control during the Reporting Period The Company’s investments in compliance risk control mainly include: investment in compliance risk control personnel, daily operating costs of compliance risk control and investment in the construction of compliance risk control related systems. In 2024, on a Parent Company basis, the total investment in compliance risk control of the Company amounted to RMB685,339,700. 14. The investment of the Company in information technology during the Reporting Period The Company’s investments in information technology mainly include: IT capital expenditure, daily expenses for operation and maintenance of IT, leasing and depreciation cost of computer rooms, circuit leasing cost and remuneration of IT personnel. In 2024, on Parent Company basis, the total investment in information technology of the Company amounted to RMB2,447,932,700. (VI) Establishment of the monitoring and complementary mechanism of the Company ’ s dynamic risk control indicators 1. Establishment of the monitoring and complementary mechanism of the dynamic risk control indicators The dynamic risk control index monitoring and replenishment mechanism is one of the important measures for the Company to control risks. During the Reporting Period, with full data, complete functions and normal operation, the dynamic monitoring system for risk control indicators of the Company can effectively support the monitoring on the net capital, liquidity and other risk control indicators of the Company. The Company continuously improved the dynamic monitoring mechanism for risk control indicators mainly based on net capital and liquidity and assigned full-time operators to conduct daily monitoring and pre-warning responses. With stricter corporate monitoring standards as the monitoring threshold based on the regulatory standards and pre-warning standards for risk control indicators specified by the CSRC, the Company launched a corresponding reporting route and response plan according to different pre-warning level and ensured that the net capital, liquidity and other risk control indicators always comply with the regulatory requirements. The Company constantly optimized the function of the net capital and liquidity dynamic monitoring system to ensure that the dynamic monitoring system can effectively support the monitoring of the Company’s net capital, liquidity and other risk control indicators. The Company has established a dynamic complementary mechanism for net capital and liquidity. The Company’s complementary pathways of net capital include but are not limited to capital fund raising for increase in capital and share, issuance of subordinated bonds, compression of highly-risky investment types and scale, and reduction or suspension of profit distribution, etc. The Company’s complementary pathways of liquidity include but are not limited to external financing (interbank borrowing, bond repurchase, corporate bond, subordinated debt, short-term financing bill, income receipts, refinancing integrated fund, etc.), realization of part of the liquid reserve, control or adjustment of business scale, etc. ![]() 111 2. Conditions of risk control indicators triggering the pre-warning criteria or not conforming to the required standards, and corrective measures adopted and rectification effects during the Reporting Period During the Reporting Period, the Company conducted prospective estimation or pressure tests of risk control indicators for profit distribution, capital increase in and guarantee provision to subsidiaries, engagement in new businesses and other major events. The above-mentioned matters were implemented under the condition that the analysis and test results meet the regulatory requirements. During the Reporting Period, the main risk control indicators of the Company were all in line with the regulatory requirements, and there were no such circumstances where the risk control indicators violated the pre-warning standards or were not in compliance with the standards provided. VIII. THERE WERE NO CIRCUMSTANCES IN THE COMPANY’S FAILURE TO MAKE DISCLOSURE IN ACCORDANCE WITH THE STANDARDS DUE TO THE INAPPLICABILITY OF THE STANDARDS REQUIREMENTS OR SPECIAL REASONS INCLUDING NATIONAL SECRETS AND TRADE SECRETS IX. OTHER DISCLOSURES (I) Share capital For the Company’s share capital for the year ended December 31, 2024, and the details of changes therein, please refer to “Changes in Shares and Shareholders” in this report. (II) Arrangement of pre-emptive rights According to the provisions of the PRC laws and the Articles of Association, none of the shareholders of the Company has any pre-emptive rights. (III) Cancellation of A Shares and reduction of registered capital On November 24, 2023, the 2023 Second Extraordinary General Meeting, the 2023 Third A Share Class Meeting and the 2023 Third H Share Class Meeting of the Company considered and approved the Resolution on the Cancellation of the Repurchased A Shares and Reduction of Registered Capital by the Company, pursuant to which the Company was approved to cancel the remaining repurchased A Shares of 45,278,495 shares. During the Reporting Period, the Company completed the cancellation of repurchased A Shares of 45,278,495 shares, completed the industrial and commercial registration modification for reduction in registered capital, and obtained the renewed business license issued by Jiangsu Provincial Market Regulation Administration. Upon the cancellation, the registered capital of the Company was RMB9,029,384,840, and the share capital structure of the Company changed to: 7,310,339,160 A Shares, representing 80.96% of the total share capital; 1,719,045,680 H Shares, representing 19.04% of the total share capital. On June 20, 2024, the 2023 Annual General Meeting, the 2024 First A Share Class Meeting and the 2024 First H Share Class Meeting of the Company considered and approved the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares of the Company, pursuant to which the Company was approved to repurchase ![]() 112 and cancel part or all of the restricted A Shares granted to 175 persons but subject to selling restriction due to non-fully fulfillment of condition of individual performance by incentive participants, release or termination of employment with the Company and other circumstances, 2,082,559 shares in total. During the Reporting Period, the Company completed the repurchase and cancellation of 2,082,559 restricted A Shares, completed the industrial and commercial registration modification for reduction in registered capital, and obtained the renewed business license issued by Jiangsu Provincial Market Regulation Administration. Upon the cancellation, the registered capital of the Company was RMB9,027,302,281, and the share capital structure of the Company changed to: 7,308,256,601 A Shares, representing 80.96% of the total share capital; 1,719,045,680 H Shares, representing 19.04% of the total share capital. (IV) Sufficient public float As at the latest practicable date before printing of this annual report, based on the information available to the public and as far as the Directors are aware of, the Directors believe that the Company’s public float satisfies the requirements for minimum public float under Rule 8.08 of the Hong Kong Listing Rules. (V) Directors ’ interests in competing business with the Company None of the Directors of the Company has any interest in the business that competes or is likely to compete, either directly or indirectly, with the business of the Company. (VI) Service contracts of Directors and Supervisors None of the Directors and Supervisors of the Company has entered into any service contract with the Company or its subsidiaries which shall be compensated (except for statutory compensation) upon termination within one year. (VII) Directors ’ and Supervisors ’ interests in material contracts, transactions or arrangements During the Reporting Period, the Directors or Supervisors of the Company or entities that are connected to them did not have material interests, whether directly or indirectly, in any material contract, transaction or arrangement entered into by the Company or its subsidiaries. (VIII) Permitted indemnity provision-liability insurance for Directors, Supervisors and senior management As authorized in 2014 annual general meeting, the Company has provided liability insurance for Directors, Supervisors, senior management, and other relevant competent persons. Appropriate insurance coverage has been arranged for Directors, Supervisors and senior management of the Company against potential legal actions and liabilities that arise from performing their duties to reasonably avoid management and legal risks ![]() 113 faced by Directors, Supervisors and senior management of the Company and to promote the full discharge of duties by the Directors, Supervisors and senior management of the Company. (IX) Profile of Directors, Supervisors and senior management For profiles of Directors, Supervisors and senior management of the Company, please refer to “Primary work experience” under “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” in “Directors, Supervisors and Senior Management” in the section headed “Corporate Governance” in this report. (X) Remuneration policy For the remuneration and share incentive scheme of Directors, Supervisors and senior management of the Company, please refer to “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” and “Remuneration of the Directors, Supervisors and Senior Management” under “Directors, Supervisors and Senior Management” in the section headed “Corporate Governance” in this report. (XI) Share option scheme The Company did not establish any share option scheme. (XII) Major customers and suppliers The Group provides services to a wide range of institutional and individual clients across various sectors. The Group’s clients range from public customers, wealth clients, high-net-worth individuals, institutional clients to corporate clients, who are primarily located in China. The successful listing in Hong Kong and London and smooth implementation of its deployment strategies in the international market will facilitate the Group in carrying out its overseas operations, exploring customer resources and boosting for further development of the Group’s businesses. In 2024, the revenue attributable to the five largest clients of the Group accounted for less than 30% of the total operating revenue of the Group. The Group has no major supplier due to the nature of its business. (XIII) Relationship with employees, customers, suppliers and persons with important relationships For details of the employees’ remuneration and training plans of the Company, please refer to “Remuneration policy” and “Training programs” under “Information about the Staff of the Parent Company and Major Subsidiaries at the end of the Reporting Period” in the section headed “Corporate Governance” in this report. For the relationship between the Company and its major customers and suppliers, please refer to “Major customers and suppliers” under “Other Disclosures” in the section headed “Management Discussion and Analysis and Report of the Board” in this report. ![]() 114 (XIV) Business review For analysis of business using key financial performance indicators, please refer to “Company Profile and Key Financial Indicators” of this report. (XV) Corporate governance For the corporate governance condition of the Company, please refer to “Corporate Governance” of this report. (XVI) Tax relief 1. Shareholders of A Shares According to the provisions in the Notice on Issues Regarding Differentiated Individual Income Tax Policy for Dividends and Bonuses of Listed Company (Cai Shui [2015] No. 101) ( 《關於上市公司股息紅利差別化個人所得稅政策有 關問題的通知》 ( 財稅 [2015] 101 號 )) and the Notice on Issues Regarding the Implementation of Differentiated Individual Income Tax Policy for Dividends and Bonuses of Listed Company (Cai Shui [2012] No. 85) ( 《關於實施上市公司股息 紅利差別化個人所得稅政策有關問題的通知》 ( 財稅 [2012] 85 號 )) jointly issued by the Ministry of Finance, State Administration of Taxation and the CSRC, for individual shareholders of the Company, if the term of shareholding (a period from the date when the individual acquires the listed shares on public offering and transferring markets to the date one day before the shares are transferred and settled) is within one month (inclusive), all the dividend and bonus incomes thereof are counted as taxable income at the effective tax rate of 20%; if the term of shareholding is between one month and one year (inclusive), temporarily, 50% of the dividend and bonus incomes are counted as taxable income at the effective tax rate of 10%; if the term of shareholding exceeds one year, temporarily, the dividend and bonus incomes are exempted from individual income taxes. When dividends and bonus incomes are distributed by a listed company, such company, temporarily, shall not withhold or pay any individual income taxes on behalf of the individuals whose term of shareholding is within one year (inclusive); instead, the taxable incomes shall be calculated by a securities registration and settlement company based on the term of shareholding when the individual transfers those shares and the Company shall withhold and pay the taxes through the securities registration and settlement company. For dividend and bonus incomes obtained by securities investment funds from listed companies, the individual income taxes thereof are calculated and levied pursuant to the provisions in the document of Cai Shui [2012] No. 85. For QFII, according to the provisions in the Notice on Issues Regarding Withholding and Payment of Corporate Income Taxes when PRC Resident Enterprises Distribute Dividends, Bonuses and Interests to the QFII (Guo Shui Han [2009] No. 47) ( 《關於中國居民企業向 QFII 支付股息、紅利、利息代扣 代繳企業所得稅有關問題的通知》 ( 國稅函 [2009] 47 號 )) issued by the State Administration of Taxation, the listed company withholds and pays corporate income taxes at a uniform tax rate of 10%. If the dividend and bonus incomes obtained by QFII shareholders are entitled to the treatment as stipulated in tax treaties (arrangements), application for tax refund can be submitted to the ![]() 115 governing tax authority after the acquisition of such dividends and bonuses according to regulations. According to the provisions in the Notice on Tax Policy Regarding Shanghai Hong Kong Stock Connect Pilot Programs (Cai Shui [2014] No. 81) ( 《關於滬港股 票市場交易互聯互通機制試點有關稅收政策的通知》 ( 財稅 [2014] 81 號 )) issued by the Ministry of Finance, State Administration of Taxation and the CSRC, for the dividend and bonus incomes obtained by investors (including enterprises and individuals) on Hong Kong market from investing in A Shares listed on Shanghai Stock Exchange, the implementation of differentiated taxation is suspended before Hong Kong Securities Clearing Company Limited meets the conditions to provide CSDC with the investors’ identifications, terms of shareholding and other specific data. The listed company withholds and pays the income taxes at the tax rate of 10%, which should be duly declared to the governing taxation authority. For Hong Kong investors who are tax residents of foreign countries that have entered a tax treaty with the PRC specifying an income tax rate for dividend and bonus incomes below 10%, the enterprises or individuals can, by themselves or entrust a withholding agent to apply to the governing tax authorities of the listed company for the treatment as stipulated in such tax treaties. The governing tax authorities should refund the taxes according to the discrepancy between the levied taxes and taxes payable based on the rate specified in the tax treaty after verifying and approving the application. For the qualified investors who invest in the GDR issued by the Company on London Stock Exchange and comply with the relevant domestic and foreign regulatory rules (GDR Investors), according to the Corporate Income Tax Law of the PRC ( 《中華人民共和國企業所得稅法》 ) and other relevant tax regulations, the Company shall withhold and pay income taxes at a tax rate of 10%. Citibank and National Association, as the nominal holders of domestic basic A Shares corresponding to GDR, receive the cash dividends distributed by the Company. If the dividend and bonus incomes obtained by GDR Investors are entitled to the treatment as stipulated in relevant tax treaties (arrangements), applications can be submitted to the governing tax authority according to regulations. For other institutional investors, the taxes on their dividends and bonus incomes shall be paid on their own. 2. Shareholders of H Shares According to the provisions in the Notice by the State Administration of Taxation on Issues Regarding the Administration of Individual Income Tax Collection after the Annulment of Document Guo Shui Fa [1993] No. 045 (Guo Shui Han [2011] No. 348) ( 《國家稅務總局關於國稅發 [1993] 045 號文件廢止後有關個 人所得稅徵管問題的通知》 ( 國稅函 [2011] 348 號 )), for the dividend and bonus incomes acquired by individual shareholders as overseas residents from the issuance of shares in Hong Kong by domestic non-foreign investment enterprises, the withholding agent shall legally withhold and pay the individual income taxes according to item “interest, dividend and bonus income”. For the issuance of shares in Hong Kong by domestic non-foreign investment enterprises, the individual shareholders as overseas residents can enjoy relevant tax preferences according to the provisions in the tax treaty signed by the country to which ![]() 116 the resident identity belongs and the PRC and in the tax arrangements between Mainland China and Hong Kong (Macao). According to relevant tax treaties and tax arrangements, the tax rates for dividends are normally 10%. To simplify administration of tax collection, when the domestic non-foreign investment enterprises issuing shares in Hong Kong distribute dividends and bonuses, the individual income taxes are generally withheld at the tax rate of 10% without application. If the dividend tax rate is not 10%, individual income taxes shall be withheld as per the following provisions: (1) for residents subject to tax rate below 10% pursuant to relevant treaties, the withholding agent can apply related treatment under such treaties on behalf of the residents and the governing tax authority will refund the additional tax payments after approving the application; (2) for residents subject to tax rate over 10% but lower than 20% pursuant to relevant treaties, when the withholding agent distributes dividend and bonus, the individual income tax shall be withheld and paid at the actual tax rate specified in the treaties and application for approval is not necessary; (3) for residents from the country which did not enter into any tax treaty with the PRC and other situations, when the withholding agent distributes dividend and bonus, the individual income tax shall be withheld and paid at the tax rate of 20%. According to the provisions in the Notice on Issues regarding Withholding of Enterprise Income Taxes when PRC Resident Enterprises Distribute Dividends to Overseas Non-resident Enterprise shareholders of H Shares (Guo Shui Han [2008] No. 897) ( 《關於中國居民企業向境外 H 股非居民企業股東派發股息代 扣代繳企業所得稅有關問題的通知》 ( 國稅函 [2008] 897 號 )) issued by the State Administration of Taxation, when Chinese resident enterprises distribute annual dividends to overseas non-resident enterprise shareholders of H Shares for 2008 and subsequent years, the corporate income tax shall be withheld and paid at the uniform tax rate of 10%. According to the provisions in the Notice on Tax Policy Regarding Shanghai Hong Kong Stock Connect Pilot Programs (Cai Shui [2014] No. 81) ( 《關於滬 港股票市場交易互聯互通機制試點有關稅收政策的通知》 ( 財稅 [2014] 81 號 )) and the Notice on Tax Policy Regarding Shenzhen-Hong Kong Stock Connect Pilot Programs (Cai Shui [2016] No. 127) ( 《關於深港股票市場交易互聯互通 機制試點有關稅收政策的通知》 ( 財稅 [2016] 127 號 )) issued by the Ministry of Finance, State Administration of Taxation and the CSRC, for dividends and bonuses acquired by Mainland individual investors by investing in listed H Shares on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, such H Share companies shall withhold the individual income tax at a tax rate of 20%. For dividends and bonuses acquired from Mainland securities investment funds by investing in listed shares on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, the individual income tax shall be levied as per above regulations. For dividends and bonuses acquired by Mainland enterprise investors by investing in listed shares on the Hong Kong Stock Exchange via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, such H Share companies shall not withhold any income taxes on the dividends and bonuses, and such income tax shall be declared and paid by the enterprises on their own. Meanwhile, for the dividends and bonuses acquired by Mainland resident enterprises for continuous holding of H Shares for 12 months, the corporate income tax shall be exempted according to laws. ![]() 117 According to the current practices of Inland Revenue Department of Hong Kong, no tax shall be levied for dividends distributed by the Company in Hong Kong. The shareholders of the Company shall pay relevant taxes and/or be entitled to tax reliefs according to the above provisions. (XVII) Environmental policies and performance of the Company For the environmental policies and performance of the Company, please refer to “Environmental and Social Responsibilities” in this report. (XVIII) Compliance with relevant laws and regulations As a public company listed at home and abroad, the Company abides, in a strict manner, by the requirements of the laws, regulations and normative documents of domestic and foreign places where the Company is listed including the Company Law, Securities Law, Regulation on the Supervision and Administration of Securities Companies, Rules for Governance of Securities Companies, Code of Corporate Governance for Listed Companies in China, Corporate Governance Code in Appendix C1 of Hong Kong Listing Rules and the Articles of Association. The Company established and perfected its rules and regulations to standardize the operation of the Company, and devoted itself to maintaining and improving its sound market image. Please refer to “Suspected Violations of Laws and Regulations by, Punishment on and Rectification of the Company and its Directors, Supervisors, Senior Management, Controlling Shareholders and de facto Controllers” in the section headed “Major Events” in this report for the punishment and public denouncement received by the Company during the Reporting Period. (XIX) Reserves and distributable reserves For changes in reserves and distributable reserves, please refer to the “Consolidated Statement of Changes in Equity” and “55. Share capital, reserves and retained profits” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. (XX) Property and equipment and investment properties For changes in properties and equipment and investment properties of the Group during the year, please refer to “20. Property and equipment” and “21. Investment properties” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. As at December 31, 2024, the Group did not own any investment properties or properties for development and/or for sale with one or more ratio (as defined in the Rule 14.04(9) of the Hong Kong Listing Rules) over 5%. (XXI) Management contract No contracts concerning the management and administration of the whole or any substantial part of the business of the Company were entered into or existed during the year ended December 31, 2024. ![]() 118 (XXII) Donations The Company actively performed its social responsibilities in 2024 by investing RMB28,513,900 (2023: RMB44,566,500) in public activities including public service advertising and charitable contribution. (XXIII) Five-year financial highlight For the highlight of operating results, assets and liabilities of the Group in the past five financial years, please refer to “Key Accounting Data and Financial Indicators for the Past Five Years” under “Key Accounting Data and Financial Indicators” in the section headed “Company Profile and Key Financial Indicators” in this report. This summary does not constitute a part of the audited consolidated financial statements. (XXIV) Auditors 1. Upon approval by the Company’s 2021 Annual General Meeting held on June 22, 2022, the Company employed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute of the Company and its holding subsidiaries for the 2022 annual financial statements and internal control to issue A Share audit report, internal control audit report and GDR audit report; and employed Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share audit report. The audit fee amounted to RMB4.20 million (of which the internal control audit fee was RMB0.35 million). In 2022, Deloitte Touche Tohmatsu Certified Public Accountants LLP issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. Certified public accountants Hu Xiaojun and Han Jian signed the report; Deloitte Touche Tohmatsu issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the International Financial Reporting Standards. Certified public accountant Eric Tong signed the report. 2. Upon approval by the Company’s 2022 Annual General Meeting held on June 30, 2023, the Company employed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute of the Company and its holding subsidiaries for the 2023 annual financial statements and internal control to issue A Share audit report, internal control audit report and GDR audit report; and employed Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share audit report. The audit service fee was capped at RMB4.60 million (of which the internal control audit fee was RMB0.40 million). In 2023, Deloitte Touche Tohmatsu Certified Public Accountants LLP issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. Certified public accountants Hu Xiaojun and Han Jian signed the report; Deloitte Touche Tohmatsu issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the International Financial Reporting Standards. Certified public accountant Eric Tong signed the report. ![]() 119 3. Upon approval by the Company’s 2023 Annual General Meeting held on June 20, 2024, the Company employed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute of the Company and its holding subsidiaries for the 2024 annual financial statements and internal control to issue A Share audit report, internal control audit report and GDR audit report; and employed Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share audit report. The audit service fee was capped at RMB4.60 million (of which the internal control audit fee was RMB0.40 million). In 2024, Deloitte Touche Tohmatsu Certified Public Accountants LLP issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. Certified public accountants Hu Xiaojun and Han Jian signed the report; Deloitte Touche Tohmatsu issued a standard unqualified opinion audit report on the annual financial report prepared by the Company in accordance with the International Financial Reporting Standards. Certified public accountant Chu Wai Chung signed the report. 4. Upon approval by the Company’s fifteenth meeting of the sixth session of the Board of Directors held on March 28, 2025, the Company proposed to employ Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute of the Company and its holding subsidiaries for the 2025 annual financial statements and internal control to issue A Share audit report, internal control audit report and GDR audit report; and employ Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share audit report. The audit service fee was capped at RMB4.98 million (of which the internal control audit fee was RMB0.40 million). This issue is yet to be approved at the 2024 Annual General Meeting of the Company. There have been changes in the auditor of the Company in the past three years. According to the Administrative Measures for Selection and Appointment of Accounting Firms by State-owned Financial Enterprises (Cai Jin [2020] No. 6) ( 《國有金融企業選聘會計師事務所管理辦法》 ( 財金 [2020] 6 號 )) issued by the Ministry of Finance, the service term of the accounting firm previously appointed by the Company expired after the completion of the audit on the 2021 Annual Report. On June 22, 2022, the Resolution on the Change of the Accounting Firm of the Company for 2022 was considered and approved at the 2021 Annual General Meeting, which approved the Company to engage Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute for the 2022 annual accounting statements and internal control audit services of the Company and its controlled subsidiaries, and issued the A Share Audit Report, the Internal Control Audit Report and the GDR Audit Report, and appoint Deloitte Touche Tohmatsu as the H Share audit service institute of the Company and issue the H Share Audit Report. (XXV) Review of Annual Results This annual financial report has been audited. The Audit Committee under the Board of Directors has reviewed the Company’s audited annual financial statement and annual report as of December 31, 2024, and did not raise any objections to the accounting policy and convention adopted by the Company. ![]() 120 (XXVI) Publication of the Annual Report This annual report will be released on the Company’s website (www.htsc.com.cn) and the HKEXnews website (www.hkexnews.hk). The 2024 annual report of the Company which contains all the information required by the Hong Kong Listing Rules will be published on the HKEXnews website (www.hkexnews.hk) and the Company’s website (www.htsc.com.cn), and will be dispatched to the shareholders of H Shares of the Company by the means of receipt of communications they selected. By order of the Board Zhang Wei Chairman March 28, 2025 ![]() 121 CORPORATE GOVERNANCE I. DESCRIPTION OF CORPORATE GOVERNANCE As a public company listed in both domestic and overseas, the Company has been operating business in a standard manner and in strict compliance with the requirements set forth in the laws, regulations and normative documents of the PRC and the overseas jurisdiction where the shares of the Company are listed, and has made continuous efforts to maintain and enhance the good image of the Company in the market. The Company keeps improving its corporate governance structure, compliance risk control and internal control system according to the requirements under the Company Law, the Securities Law, the Regulations on Supervision and Management of Securities Companies, the Rules for Governance of Securities Companies, the Rules for Corporate Governance of Listed Companies, the Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules and other relevant laws and regulations as well as the Articles of Association, in order to establish a modern corporate system, and shape a corporate governance structure where checks and balances among the general meeting, the Board, the Supervisory Committee and the operation management are maintained, with each of them being separated from the other and performing its own functions and responsibilities corresponding to its position within the specified terms of reference, thereby ensuring all the operational activities of the Company are carried out smoothly and in accordance with relevant laws and regulations. (I) Corporate Governance During the Reporting Period, the Company conducted its operations and management in a standard and orderly manner. Various rules and regulations have been formulated and continuously refined in strict compliance with the requirements of laws, regulations and normative documents to regulate the Company’s operations. During the Reporting Period, the Company amended and improved the Articles of Association, which was considered and approved by the general meeting of the Company, in light of cancellation of the remaining repurchased A Shares by the Company and repurchase and cancellation of part of the restricted A Shares under the equity incentive scheme of the Company. Meanwhile, in order to strengthen the management of inside information, maintain the confidentiality of inside information, ensure fair information disclosure and protect the legitimate rights and interests of investors, the Company amended and improved the System regarding Insider Registration, Management and Confidentiality ( 《內幕信息知情人登記管理及保密制度》 ) in compliance with the Regulatory Guidelines for Listed Companies No. 5 – Registration and Management System for Insider Information of Listed Companies ( 《上市公司監管指引第 5 號－上 市公司內幕信息知情人登記管理制度》 ), the Guidelines No. 2 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies – Information Disclosure Affairs Management ( 《上海證券交易所上市公司自律監管指引第 2 號 － 信息披露事務管理》 ) as well as relevant laws, regulations, departmental rules, normative documents and in light of the actual situation of the Company; and in order to strengthen the management of the Shares of the Company held by Directors, Supervisors and senior management of the Company and the changes thereof, the Company amended and improved the Administrative System regarding the Shares of the Company Held by Directors, Supervisors and Senior Management in compliance with the Interim Measures for the Administration of Shareholding Reduction by Shareholders of Listed Companies ( 《上市 公司股東減持股份管理暫行辦法》 ), the Rules for the Management of Shares Held by Directors, Supervisors and Senior Management of Listed Companies and the Changes thereof ( 《上市公司董事、監事和高級管理人員所持本公司股份及其變動管理規則》 ) issued by the CSRC and the Guidelines No. 15 of the Shanghai Stock Exchange for ![]() 122 Self-Regulation of Listed Companies – Shareholding Reduction by Shareholders and Directors, Supervisors and Senior Management ( 《上海證券交易所上市公司自律監管指 引第 15 號 － 股東及董事、監事、高級管理人員減持股份》 ) as well as relevant laws, regulations, departmental rules, normative documents and in light of the actual situation of the Company. These amendments to the rules have been considered and approved by the Board of the Company. In addition, during the Reporting Period, as considered and approved by the Board, the Supervisory Committee and the general meeting of the Company, the Company made adjustments to the composition of the sixth session of the Board, the Supervisory Committee and the special committees thereof to fully leverage on professional strengths and improve decision efficiency and decision level. Through the establishment and improvement as well as the full implementation of the above systems, the Company’s governance structure and level have been continuously standardized and improved. The convening, holding and voting procedures of the general meeting, the Board and the Supervisory Committee of the Company were standard, legal and valid, and the Company disclosed truthful and accurate information in a complete, timely and fair manner. The Company carried out investor relationship management in a standard and professional manner, and carried out inside information management and registration of insiders in strict compliance with the requirements of the System regarding Insider Registration and Management and Confidentiality of the Company and other relevant rules. The Company adhered to the principle of scientificity, standardization and transparency when practicing corporate governance. During the Reporting Period, the Company was rated with the highest rating of A in the 2023-2024 Information Disclosure Evaluation on Listed Companies organized by the SSE; was honored as the Best Practice Case in the 2024 Best Practice Case Collections for Board of Directors of Public Companies organized by China Association for Public Companies, and was honored as the Best Practice Case in the 2024 Best Practice Case Collections for Board Office of Public Companies organized by China Association for Public Companies. At the same time, the secretary of the Board of the Company was rated as 5A in the 2024 Performance Evaluation of the Secretary of the Board of Directors of Listed Companies organized by China Association for Public Companies. In addition, with its remarkable ESG governance practice, in 2024, the annual MSCI ESG rating of the Company rose to AAA from AA, achieving two consecutive years of advancement to the highest rating in the global investment banking industry. 1. Shareholders and the General Meeting The shareholders’ general meeting is the organ of the highest authority of the Company, and the shareholders exercise their rights through the shareholders’ general meeting. The Company convenes and holds shareholders’ general meetings in strict accordance with the relevant provisions of the Articles of Association and the Rules of Procedures for General Meetings to ensure the equal status of all shareholders, in particular the minority shareholders, and enable them to exercise their rights completely. The largest shareholder and the de facto controller of the Company exercised their rights in accordance with the laws, regulations and the Articles of Association, and neither directly or indirectly intervened in the decisions and operations of the Company beyond the general meeting nor appropriated any fund of the Company or requested the Company to provide any external guarantee. The Company was completely independent from its largest shareholder and de facto controller in terms of staff, assets, finance, organization and business. ![]() 123 2. Directors and the Board The election and change of Directors were in strict compliance with the Articles of Association. The number and composition of the Board conformed to the requirements of the relevant laws and regulations. The Board has continuously improved its rules of procedures. All the Board meetings were duly convened and held, and all voting procedures at the meetings were legal and valid. The Company has established the Working System for Independent Directors, and all the independent Directors have independently and objectively worked to protect the legitimate rights and interests of the Company and its shareholders, and played a role of check and balance in the decision-making process of the Board. The Board has the following mechanism in place to ensure independent views and input from Directors are conveyed to the Board. Meanwhile, the Board reviews the implementation and effectiveness of this mechanism every year: The Board of the Company includes 5 independent non-executive Directors, representing more than 1/3 of the Board. Each year, all independent Directors of the Company submit an annual performance report to the Board and the shareholders’ general meeting for consideration, and disclose relevant information on their positions in other listed companies or organizations in the annual report. The Company has established Special Committees under the Board that are responsible to the Board and submit the voting results of the meetings to the Board, among which the majority members of the Audit Committee and the Nomination Committee are independent Directors who host the posts of chairman. All members of the Remuneration and Appraisal Committee are independent Directors. The Nomination Committee is responsible for reviewing the structure, size and composition of the Board each year, reviewing and making recommendations on the qualifications of Directors and senior management and reviewing the independence of independent non- executive Directors and other matters. The Company ensures that independent Directors have the right to information equivalent to that of other Directors and are provided with the necessary working conditions to perform their duties, and for matters that need to be decided by the Board, the Company shall notify independent Directors in advance pursuant to statutory limit of time and provide true, accurate and sufficient information at the same time. If independent Directors consider that the information is insufficient, they may request the Company to supplement. All Directors of the Company are able to perform their duties with due diligence in accordance with the relevant regulations to safeguard the interests of the Company and all shareholders. ![]() 124 There is no financial, business, family or other significant/related relationship between the Directors, Supervisors and senior management of the Company. The Company believes that the increasing diversity of the Board is one of the key factors that help support its strategic objectives and maintain sustainable development. Therefore, the Company has, when determining the composition of the Board, adopted the following measures to maintain or enhance its balance and diversity: (1) consider the diversity of Board members in several aspects, including but not limited to gender, age, cultural and educational background, professional experience, skills, knowledge and popularity in service. The determination of the members should be based on the value of the candidates and the contribution that they could make to the Board. All nominations of the Board should be in the principle of “merit-based”. When the candidates are selected, the benefits from the diversity of Board members should be taken into full consideration according to their objective conditions. (2) The Nomination Committee will report annually on the diversified composition of the Board in the annual report, inspect the implementation of the abovementioned policy on diversification of Board members and review such policy every year so as to ensure its effectiveness. In 2022, the Company set up the sixth session of the Board of Directors, with members including strategic Shareholder representatives introduced through the non-public issuance of A Shares, forming a Board with diversified composition and complementary advantages. As of the end of the Reporting Period, the composition of the Board of the Company is as follows: By age group Aged 50 and below: 4 persons; aged 51-55: 4 persons; aged 56-60: 4 persons; aged over 60: 1 person By category of Directors Executive Directors: 3 persons; non-executive Directors: 5 persons; independent non-executive Directors: 5 persons By gender Female Director: 1 person; male Directors: 12 persons ![]() 125 Professional background Finance, economics, accounting, laws, business administration, economic management, enterprise management, industrial economics, electronic communication, social sciences, etc. The Board considers that the current composition of the Board during the Reporting Period is diversified regarding skills, gender, experience and knowledge. However, after the resignation of Ms. Yin Lihong, an executive Director of the Company, on March 14, 2025, the Company will identify suitable candidate to serve as the Director pursuant to relevant requirements, in order to re-meet the requirement under Rule 13.92 of the Hong Kong Listing Rules regarding diversity of the Board. The nomination policy of the Company can ensure that the Board will have potential alternate candidates to continue the diversity of the Board. 3. Supervisors and the Supervisory Committee The election and change of the Supervisors were in strict compliance with the Articles of Association. The number and composition of the Supervisory Committee conformed to the requirements of the relevant laws and regulations. The Supervisory Committee has continuously improved its rules of procedure. All the meetings of the Supervisory Committee were duly convened and held, and all voting procedures at the meetings were legal and valid. The Supervisory Committee is responsible to the general meeting. Based on the principle of being responsible to all shareholders, the Supervisory Committee effectively supervised the legality and compliance of the Company’s finance and the performance of duties by the Board and the management of the Company. All Supervisors diligently performed their duties, attended all meetings of the Supervisory Committee and sat in the meetings of the Board as non-voting delegates, made reports to the general meeting and submitted its work report. 4. Senior Management of the Company The election and change of the senior management were in strict compliance with the Articles of Association. The procedures for appointment of senior management complied with the Company Law and the Articles of Association. The Company has formulated the Terms of Reference of the CEO and the Executive Committee and the Terms of Reference of the Secretary to the Board and other rules and regulations. The senior management of the Company conducted operations and performed their duties legally and diligently in accordance with the laws, regulations and authorizations of the Board, in order to maximize shareholders’ benefits and social benefits. ![]() 126 5. Information Disclosure and Transparency of the Company The Company disclosed information in a truthful, accurate, complete and timely manner in strict compliance with the requirements of laws, rules and relevant regulations, and ensured that all shareholders had an equal access to the relevant information of the Company, thereby ensuring the transparency of the Company. The Company strengthened the management of inside information, worked to ensure the confidentiality of inside information, and safeguarded the principle of fairness in information disclosure in strict compliance with the System regarding Insider Registration and Management and Confidentiality of the Company. The Board designated the secretary to the Board to be responsible for the Company’s information disclosure, and the Office of the Board also assisted the secretary in information disclosure. Meanwhile, the Company also arranged dedicated personnel to answer telephone enquiries of investors and questions from investors via e-mails and the SSE interactive E-platform, actively interacted with institutional investors during their visits and surveys or telephone interviews, regularly held results presentation and online briefing on the results, proactively attended strategy seminars and investment forums held by domestic or overseas financial institutions and updated in a timely manner information on the “Investor Relations” column on the Company’s website. 6. Stakeholders The Company gave full respects to the shareholders, customers, staff and other stakeholders and protected their legitimate rights and interests from the perspective of system building and in each link of business operation, ensured the development of the Company in a sustainable, harmonious, healthy and standard way, in order to achieve all-win results for the Company and all stakeholders, thus maximizing the Company’s profits and social benefits. During the Reporting Period, according to the requirements of the regulatory departments, the Company further improved its organizational structure, institutional building and strengthened management of inside information, and ensured that the actual status of the corporate governance of the Company complied with the requirements of the normative documents published by the CSRC regarding the corporate governance of listed companies. Meanwhile, the Company strictly complied with all the code provisions as set out in the Corporate Governance Code, and met most of the recommended best practices in the Corporate Governance Code. (II) Formulation and Implementation of Insider Registration and Management System The Company formulated the System regarding Insider Registration and Management and Confidentiality in April 2010 in accordance with the requirements of relevant laws and regulations, normative documents and the Articles of Association and in light of the actual situation of the Company, which was considered and approved at the seventeenth meeting of the first session of the Board, in order to strengthen the management of inside information, maintain the confidentiality of inside information, ensure fair information disclosure and protect the legitimate rights and interests of investors. ![]() 127 In December 2011, according to the Provisions on the Establishment of an Insider Registration and Management System by Listed Companies (CSRC Announcement [2011] No. 30) ( 《關於上市公司建立內幕信息知情人登記管理制度的規定》 ( 證監會 公告 [2011]30 號 )) by the CSRC, the Circular on Filing Records of Insiders by Listed Companies (Shang Zheng Gong Han [2011] No. 1501) ( 《關於做好上市公司內幕信息知 情人檔案報送工作的通知》 ( 上證公函 [2011]1501 號 )) by the Shanghai Stock Exchange and other relevant requirements issued by regulators, the Company made amendments to the System Regarding Insider Registration and Management and Confidentiality, which were considered and approved at the seventh meeting of the second session of the Board. In March 2015, in order to meet the relevant regulatory requirements regarding the listing of the H Shares of the Company, the Company made amendments to the System Regarding Insider Registration and Management and Confidentiality, which were considered and approved at the sixteenth meeting of the third session of the Board. In March 2019, for consistency with the Articles of Association, the Company made amendments to the System regarding Insider Registration and Management and Confidentiality, which was considered and approved at the twentieth meeting of the fourth session of the Board. In August 2020, according to the revised Securities Law, the Guidelines on Insiders Reporting by Listed Companies of the SSE as well as relevant laws, regulations and normative documents, the Company made amendments to the System regarding Insider Registration and Management and Confidentiality, which was considered and approved at the seventh meeting of the fifth session of the Board. In March 2024, pursuant to the Regulatory Guidelines for Listed Companies No. 5 – Registration and Management System for Insider Information of Listed Companies, the Guidelines No. 2 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies – Information Disclosure Affairs Management as well as relevant laws, regulations, departmental rules, normative documents, the Company amended the System regarding Insider Registration, Management and Confidentiality, which was considered and approved at the seventh meeting of the sixth session of the Board of the Company. During the Reporting Period, the Company made more efforts to maintain the confidentiality of inside information, performed its obligation of insider registration, management and confidentiality diligently, kept records of the names of insiders who had accessed to the inside information at the stage of negotiation, planning, demonstration and consultation and contracting as well as in the processes of reporting, delivery, preparation, auditing, resolution and disclosing before its final disclosure in strict compliance with the requirements of System regarding Insider Registration and Management and Confidentiality, and kept records of information relating to insiders and memos of progress of major events, in order to effectively prevent insider dealing and properly carry out information disclosure. During the Reporting Period, the Company organized internal investigation into the dealing of shares and derivatives of the Company by insiders, and found that none of the holders of inside information had made use of inside information in share transactions before any significant-price-sensitive-nature information disclosure that may affect the share price of the Company, and the Company has not received any punishment or administrative measure imposed by regulatory departments due to the possible involvement in insider dealing. ![]() 128 (III) Corporate Governance Policies and the Board ’ s Responsibilities for Corporate Governance The Company has been in strict compliance with the Hong Kong Listing Rules, and followed all the principles in the Corporate Governance Code to be its own corporate governance policies. In respect of the corporate governance function, the terms of reference of the Board shall at least include: (1) to formulate and review the corporate governance policies and practices of the Company; (2) to review and monitor the training and continuous professional development of the Directors and the senior management; (3) to review and monitor the Company’s policies and practices on compliance with laws and regulatory requirements; (4) to formulate, review and monitor the code of conduct and compliance manual (if any) applicable to monitor employees and Directors; (5) to review the Company’s compliance with the Corporate Governance Code and disclosure in the Corporate Governance Report. (IV) Securities Transactions by Directors, Supervisors and Employees During the Reporting Period, the Company adopted the Model Code as set out in Appendix C3 to the Hong Kong Listing Rules as the code of conduct for securities transactions of the Company by all Directors and Supervisors. According to the domestic regulatory requirements, the Company convened the thirteenth meeting of the third session of the Board on November 25, 2014 to consider and approve the Administrative System regarding the Shares of the Company Held by Directors, Supervisors and Senior Management (the “Administrative System”) in order to regulate the holding and dealing in the shares of the Company by Directors, Supervisors and senior management. On March 6, 2015, the Company made amendments to the Administrative System in order to meet the relevant regulatory requirements regarding the listing of H Shares of the Company, which were considered and approved at the sixteenth meeting of the third session of the Board. On October 28, 2022, the Company made amendments to the Administrative System, which were considered and approved at the twenty-seventh meeting of the fifth session of the Board of the Company. On December 20, 2024, the Company made amendments to the Administrative System in order to strengthen the management of the Shares of the Company held by Directors, Supervisors and senior management of the Company and the changes thereof, which were considered and approved at the fourteenth meeting of the sixth session of the Board of the Company. The compulsory provisions contained in the Administrative System are stricter than those under the Model Code. Having made all enquiries with Directors, Supervisors and senior management, the Company confirmed that all Directors, Supervisors and senior management had strictly complied with the relevant requirements under the Administrative System and Model Code during the Reporting Period. The Board of the Company will, on a regular or irregular basis, carry out inspection on corporate governance and operation of the Company, in order to ensure the relevant provisions under the Hong Kong Listing Rules are well observed and to protect the interests of the shareholders. Please refer to “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” under “Directors, Supervisors and Senior Management” under “Corporate Governance” in this report for details of the shareholding of the Directors, Supervisors and senior management of the Company. ![]() 129 II. SPECIFIC MEASURES TAKEN BY THE CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS OF THE COMPANY TO ENSURE THE INDEPENDENCE OF THE COMPANY IN TERMS OF ASSETS, PERSONNEL, FINANCE, ORGANIZATION AND BUSINESS, AND THE SOLUTIONS, WORK PROGRESS AND FOLLOW-UP WORK PLANS THAT INFLUENCE THE INDEPENDENCE OF THE COMPANY The shareholding structure of the Company is relatively decentralized without controlling shareholders. The de facto controller of the Company is Jiangsu SASAC. Since its inception, the Company has been operating in strict compliance with relevant laws and regulations including the Company Law and the Securities Law as well as the requirements of the Articles of Association. The Company is completely separated from its shareholders in respect of business, staff, assets, organization and finance, owns a complete business system and is capable of operating independently in the market. 1. Information about the independence of business In accordance with the requirements of the Company Law and the Articles of Association, the Company conducts business on its own pursuant to the law within the operating scope approved by the CSRC, and has obtained various business materials required for securities business operation with an independent and complete business system and the ability of self-operation. Its business operation is not controlled or affected by its shareholders or related parties. The Company can compete in the market independently. Shareholders and related parties of the Company did not breach the Company’s working procedures or intervene in the Company’s internal management or the making of its operational decisions. 2. Information about the independence of the staff The Company set up a dedicated human resources department, and established independent and complete systems for labor employment, personnel management, salary management and social security. The Directors, Supervisors, and senior management of the Company were selected and employed in compliance with relevant requirements of the Company Law, the Securities Law, the Measures for the Supervision and Administration of Directors, Supervisors, Senior Management Officers and Practitioners of Securities Fund Operating Institutions and the Articles of Association. The current Directors, Supervisors and senior management of the Company meet the corresponding qualifications. The senior management of the Company held no positions in its largest shareholder and de facto controller and other enterprises under its control. The Company adopts an appointment system for the senior management, a labor contract system for all staff, and enters into Labor Contract with all the staff in accordance with the law. The Company owns independent rights for labor employment and its staff are independent from the shareholders and enterprises under their control without any interference from the shareholders. ![]() 130 3. Information about the integrity of the assets The Company owns main business qualifications, land, real estate, vehicles and other operating equipment required for business operation. The above assets are subject to no mortgage, pledge or other guarantees, and the Company is the legal owner of these assets. The assets of the Company are independent from its largest shareholder and other shareholders. As of the end of the Reporting Period, the Company provided no guarantees for the debts of any of its shareholders and their subsidiaries by using its assets or reputation as the collateral. The Company had full control and use right over its assets, and there had been no circumstance under which the interests of the Company were damaged due to the largest shareholder’s occupation of any of its assets and funds. 4. Information about organizational independence In strict compliance with the requirements of the Company Law and the Articles of Association, the Company has set up a sound corporate governance structure, under which the general meeting, the Board of Directors, the Supervisory Committee, the senior management and relevant operating management departments have been formed. The general meeting, the Board of Directors, the Supervisory Committee and the senior management are in good operation and exercise their respective functions and powers pursuant to the law. The Company owns an independent and complete system for securities business operation and management, and conducts business on its own. The organizations are set up and run in compliance with the relevant requirements of the CSRC. The existing offices and premises of the Company are totally separate from its shareholders without the circumstances of sharing organizations with them or their direct intervention in the Company’s business activities. 5. Information about financial independence As required by the Accounting Standards for Business Enterprises and the Financial Systems of Securities Firms, the Company has established an independent financial accounting and management system, set up an independent accounting department, and employed independent financial accountants. The chief financial officer and financial personnel of the Company held no positions in its shareholders. The Company has opened an independent bank account, applied for an independent tax registration and paid taxes in accordance with laws and regulations. The Company shared no accounts and taxes with its shareholders and related parties. As of the end of the Reporting Period, the Company provided no guarantees for its shareholders and other related parties. During the Reporting Period, the Company experienced no peer competition and related-party transactions resulted from shareholding reform, features of the industry and national policies or mergers and acquisitions. ![]() 131 CONTROLLING SHAREHOLDERS, DE FACTO CONTROLLERS AND OTHER UNITS UNDER THEIR CONTROL ENGAGED IN SAME OR SIMILAR BUSINESSES AS THE COMPANY AND IMPACTS OF HORIZONTAL COMPETITIONS OR SIGNIFICANT CHANGES IN HORIZONTAL COMPETITIONS ON THE COMPANY, SOLUTIONS ADOPTED, SOLVING PROGRESS AND SUBSEQUENT SOLUTIONS In July 2010 and with the approval of the People’s Government of Jiangsu Province, Jiangsu SASAC decided to transfer the state-owned equities in Jiangsu Sainty International Group Limited to Guoxin Group, the largest shareholder of the Company. Guoxin Group directly and indirectly held 78.5% equities of Jintai Futures Co., Ltd., and became the controlling shareholder of Jintai Futures Co., Ltd. Jintai Futures Co., Ltd. is principally engaged in commodities futures brokerage, financial futures brokerage, futures investment consultancy and asset management, which has horizontal competition with Huatai Futures, a subsidiary by the Company. To avoid the abovementioned horizontal competition, on June 10, 2014, the Company organized the convening of the sixth meeting of the third session of the Board and the fourth meeting of the third session of the Supervisory Committee, which considered and approved the Resolution on Avoiding Horizontal Competition in Futures Businesses Between Jiangsu Guoxin and Huatai Securities and submitted to the 2014 second extraordinary general meeting convened on June 26, 2014 for consideration and approval. Meanwhile, the independent Directors of the Company expressed independent opinions on the resolution. They believed that such horizontal competition has no significant effect on the operation and development of Huatai Securities and the interests of minority shareholders and the resolution is in line with relevant regulations of the CSRC and beneficial to the legitimate interests of investors, small and medium investors in particular, and meets the requirements of Huatai Securities on maximizing shareholders’ interests. On June 27, 2014, Guoxin Group re-signed the Letter of Undertaking on Waiving Horizontal Competition and Conflict of Interests based on relevant regulations and the requirements of the resolutions at the 2014 second extraordinary general meeting of the Company. For the details of the announcement on the change of such undertaking, please refer to the announcement (Lin No. 2014-047) on the performance and change of undertaking by the Company’s shareholder dated June 28, 2014. ![]() 132 III. BRIEF INTRODUCTIONS TO THE GENERAL MEETINGS Meeting Convening date Resolutions Enquiry index of the websites designated for publication of the resolutions Date of disclosure of the publication of the resolutions Status 2023 Annual General Meeting June 20, 2024 1. To consider the 2023 Work Report of the Board of the Company; 2. To consider the 2023 Work Report of the Supervisory Committee of the Company; 3. To consider the 2023 Final Financial Report of the Company; 4. To consider the Resolution on the 2023 Annual Report of the Company; 5. To consider the Resolution on the 2023 Profit Distribution Plan of the Company; 6. To consider the Resolution on Proposal to the General Meeting to Authorize the Board to Decide on the Interim Profit Distribution for 2024; 7. To consider the Resolution on the Estimated Ordinary Transactions with Related Parties of the Company for 2024; 8. To consider the Resolution on the Estimated Investment Amount for the Proprietary Business of the Company for 2024; 9. To consider the Resolution on the Re- appointment of the Accounting Firms of the Company for 2024 ; 10. To consider the Report on Performance of Duties of the Independent Non-executive Directors of the Company for 2023; 11. To consider the Resolution on the Election of Mr. Lo Kin Wing Terry as an Independent Non-executive Director of the Sixth Session of the Board of the Company; 12. To consider the Resolution on the Election of Mr. Lv Wei as a Non-employee Representative Supervisor of the Sixth Session of the Supervisory Committee of the Company; 13. To consider the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company; 14. Debriefing of the Report on Performance Assessment and Remuneration of the Directors of the Company for 2023; https://www.sse.com.cn https://www.hkexnews.hk https://www.londonstockexchange.com https://www.htsc.com.cn June 21, 2024 All resolutions were considered and approved. ![]() 133 Meeting Convening date Resolutions Enquiry index of the websites designated for publication of the resolutions Date of disclosure of the publication of the resolutions Status 15. Debriefing of the Report on Performance Assessment and Remuneration of the Supervisors of the Company for 2023; 16. Debriefing of the Report on Performance of Duties, Performance Assessment and Remuneration of the Senior Management of the Company for 2023. 2024 First A Share Class Meeting June 20, 2024 To consider the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company. https://www.sse.com.cn https://www.hkexnews.hk https://www.londonstockexchange.com https://www.htsc.com.cn June 21, 2024 The resolution was considered and approved. 2024 First H Share Class Meeting June 20, 2024 To consider the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company. https://www.sse.com.cn https://www.hkexnews.hk https://www.londonstockexchange.com https://www.htsc.com.cn June 21, 2024 The resolution was considered and approved. Description of general meetings None of the shareholders of the Company are holders of preference shares with voting rights recovered. Therefore, none of the extraordinary general meetings was convened by holders of preference shares with voting rights restored, nor was any general meeting proposed to be convened, convened or chaired by the holders of preference shares with voting rights recovered during the Reporting Period. ![]() 134 IV. DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT (I) Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period Currency: RMB Unit: Ten thousand shares Name Position Gender Age Start of the term of office Expiration of the term of office Number of Shares held at the beginning of the year Number of Shares held at the end of the year Changes in shareholding during the year Reason for change Total pre-tax remuneration received from the Company during the Reporting Period (Ten Thousand Yuan) Whether received remuneration from any connected party of the Company or not Zhang Wei Chairman Male 60 2019-12-16 2025-12-29 – – – – 81.24 No Zhou Yi Executive Director Male 55 2007-12-06 2025-12-29 72.00 72.00 – – 144.00 No Employee representative Director 2022-12-30 2025-12-29 Chief executive officer, Chairman of the Executive Committee 2019-10-29 2025-12-29 Ding Feng Non-executive Director Male 56 2018-10-22 2025-12-29 – – – – – Yes Chen Zhongyang Non-executive Director Male 57 2022-06-22 2025-12-29 – – – – – Yes Ke Xiang Non-executive Director Male 50 2021-02-08 2025-12-29 – – – – – Yes Liu Changchun Non-executive Director Male 50 2023-11-24 2025-12-29 – – – – – Yes Zhang Jinxin Non-executive Director Male 53 2022-12-30 2025-12-29 – – – – – No Wang Jianwen Independent non-executive Director Male 50 2020-06-18 2025-12-29 – – – – 24.00 No Wang Quansheng Independent non-executive Director Male 56 2022-06-22 2025-12-29 – – – – 24.00 No Peng Bing Independent non-executive Director Male 52 2022-12-30 2025-12-29 – – – – 24.00 No Wang Bing Independent non-executive Director Male 46 2022-12-30 2025-12-29 – – – – 24.00 No Lo Kin Wing Terry Independent non-executive Director Male 65 2024-06-20 2025-12-29 – – – – 14.00 No Gu Chengzhong Employee representative Supervisor Male 59 2019-04-26 2025-12-29 – – – – 109.44 No Chairman of the Supervisory Committee 2021-10-29 2025-12-29 ![]() 135 Name Position Gender Age Start of the term of office Expiration of the term of office Number of Shares held at the beginning of the year Number of Shares held at the end of the year Changes in shareholding during the year Reason for change Total pre-tax remuneration received from the Company during the Reporting Period (Ten Thousand Yuan) Whether received remuneration from any connected party of the Company or not Lv Wei Supervisor Male 36 2024-06-20 2025-12-29 – – – – – Yes Yu Lanying Supervisor Female 53 2018-10-22 2025-12-29 – – – – – Yes Zhang Xiaohong Supervisor Female 57 2019-12-16 2025-12-29 – – – – – Yes Zhou Hongrong Supervisor Female 52 2022-12-30 2025-12-29 – – – – – Yes Wang Ying Employee Supervisor Female 45 2019-12-16 2025-12-29 – – – – 100.32 No Wang Juan Employee Supervisor Female 46 2021-10-29 2025-12-29 – – – – 65.16 No Han Zhencong Member of the Executive Committee, Chief information officer Male 57 2022-04-08 2025-12-29 60.00 60.00 – – 111.90 No Sun Hanlin Member of the Executive Committee Male 59 2019-12-16 2025-12-29 60.00 60.00 – – 115.20 No Jiang Jian Member of the Executive Committee Male 58 2019-12-16 2025-12-29 60.00 60.00 – – 115.20 No Zhang Hui Member of the Executive Committee Male 49 2019-12-16 2025-12-29 60.00 60.00 – – 111.90 No Secretary of the Board 2017-04-26 2025-12-29 Chen Tianxiang Member of the Executive Committee Male 46 2020-02-18 2025-12-29 60.00 60.00 – – 115.20 No Jiao Xiaoning Chief financial officer Female 54 2020-03-05 2025-12-29 50.00 50.00 – – 145.20 No Jiao Kai General legal counsel Male 50 2019-12-16 2025-12-29 50.00 50.00 – – 145.20 No Chief compliance officer 2020-02-17 2025-12-29 Wang Chong Chief risk officer Male 53 2017-03-16 2025-12-29 50.00 50.00 – – 204.00 No Sun Yan Director of human resources Female 53 2022-12-30 2025-12-29 8.00 8.00 – – 109.92 No Yin Lihong Executive Director (resigned) Female 54 2022-06-22 2025-03-14 – – – – 73.08 No Tse Yung Hoi Independent non-executive Director (resigned) Male 72 2022-12-30 2024-06-20 – – – – 12.00 No Li Chongqi Supervisor (resigned) Female 47 2022-12-30 2024-06-20 – – – – – No Total / / / / / 530.00 530.00 – / 1,868.96 / ![]() 136 Notes: 1. On April 29, 2024, the Board of the Company received a written resignation report from Mr. Tse Yung Hoi, an independent non-executive Director. Mr. Tse Yung Hoi has proposed to resign from his positions as an independent non-executive Director of the sixth session of the Board of the Company and as a member of the Audit Committee of the Board due to work reasons. As the resignation of Mr. Tse Yung Hoi will cause the proportion of independent non-executive Directors of the Company to the total members of the Board to be less than one-third, Mr. Tse Yung Hoi has promised to continue to perform his duties until the date when a new independent non-executive Director is appointed. There is no disagreement between Mr. Tse Yung Hoi and the Board of the Company, and there is no matter in relation to his resignation that needs to be notified to the shareholders of the Company. Mr. Tse Yung Hoi has also confirmed that he is not a party involved in any on-going or pending litigation or dispute against the Company. 2. According to the relevant requirements of the Rules for Governance of Securities Companies ( 《證 券公司治理準則》 ) promulgated by the CSRC and the Articles of Association, Shareholder(s) severally or jointly holding no less than 3% of the outstanding voting shares of the Company may recommend candidates for Supervisors (non-employee representative Supervisors) to the Supervisory Committee. As Guoxin Group, a shareholder holding more than 3% of the outstanding voting shares of the Company, has nominated Mr. Lv Wei as a candidate for non-employee representative Supervisor of the sixth session of the Supervisory Committee, Ms. Li Chongqi will cease to be a non-employee representative Supervisor of the sixth session of the Supervisory Committee due to business commitments. There is no disagreement between Ms. Li Chongqi and the Supervisory Committee, and there is no matter in relation to her resignation that needs to be notified to the shareholders of the Company. 3. On June 20, 2024, the Resolution on the Election of Mr. Lo Kin Wing Terry as an Independent Non-executive Director of the Sixth Session of the Board and the Resolution on the Election of Mr. Lv Wei as a Non-employee Representative Supervisor of the Sixth Session of the Supervisory Committee were considered and approved at the 2023 Annual General Meeting of the Company. From June 20, 2024, Mr. Lo Kin Wing Terry performed his duty as an independent non-executive Director of the sixth session of the Board of the Company succeeding Mr. Tse Yung Hoi for a term until the end of the term of the current session of the Board; Mr. Lv Wei performed his duty as a Supervisor of the sixth session of the Supervisory Committee of the Company succeeding Ms. Li Chongqi for a term until the end of the term of the current session of the Supervisory Committee. 4. On March 14, 2025, the Board of the Company received a written resignation report from Ms. Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign from her positions as an executive Director of the sixth session of the Board of the Company and as a member of the Nomination Committee of the Board due to work adjustment, upon which she no longer holds any position in the Company. Ms. Yin Lihong has no unfulfilled public commitments or obligations, there is no disagreement between her and the Board of the Company, and there is no matter in relation to her resignation that needs to be notified to the shareholders and creditors of the Company. Ms. Yin Lihong has also confirmed that she is not a party involved in any on-going or pending litigation or dispute against the Company. 5. The aforesaid figures on total pre-tax remuneration represent the remuneration accrued and distributed for 2024 earned by Directors, Supervisors and senior management of the Company during the period in which they held relevant positions; and it was implemented in accordance with relevant policies of competent authorities and the Company’s relevant remuneration assessment system. 6. The final remuneration distributed for 2024 for Directors, Supervisors and senior management who received compensation from the Company is still in the process of confirmation, and the rest will be disclosed separately after confirmation. 7. The remuneration of the Directors that are the persons in charge of provincial financial enterprises shall be implemented in accordance with the Interim Measures for the Administration of Remuneration of Persons in Charge of Provincial Financial Enterprises in Jiangsu Province ( 《江蘇 省省管金融企業負責人薪酬管理暫行辦法》 ). ![]() 137 Name Primary work experience Zhang Wei Master of business administration, senior economist and senior engineer. He once worked in Jiangsu Electronic Industry Research Institute ( 江 蘇省電子工業綜合研究所 ) and Jiangsu Electronic Industry Bureau. He worked as secretary to the board of directors and assistant general manager, deputy general manager, general manager and deputy secretary of the party committee of Jiangsu Hiteker High-tech Co., Ltd. ( 江蘇宏 圖高科技股份有限公司 ). He also served as director, general manager, deputy secretary of the party committee, secretary of the party committee and chairman of the board of Govtor Capital Group Co., Ltd. ( 江蘇高 科技投資集團有限公司 ). Mr. Zhang has been the secretary of the party committee of the Company since March 2019 and has been chairman of the Board of Directors of the Company since December 2019 with a term of office in current session of the Board from December 2022 to December 2025. Zhou Yi Bachelor of computer communications. Mr. Zhou once served as the chairman of the board of directors of Jiangsu Bei’er Communication System Co., Ltd. ( 江蘇貝爾通信系統有限公司 ) and Nanjing Xinwang Telecom Tech Co., Ltd. ( 南京欣網視訊科技股份有限公司 ). He joined the Company in August 2006, and once served as deputy secretary of the party committee, President, secretary of the party committee, the chairman of the Board of Directors and party committee member of the Company, etc. He has been a Director of the Company since December 2007, and has been chief executive officer and chairman of the Executive Committee of the Company since October 2019 with a term of office in current session of the Board and the senior management from December 2022 to December 2025. ![]() 138 Name Primary work experience Ding Feng Master of business administration and senior accountant. He served as accountant of the finance department of China Songhai Industrial Corporation ( 中國嵩海實業總公司 ) in Xiamen Special Economic Zone from August 1990 to November 1992; chief accountant of the finance department of China North Industries Corporation Xiamen Branch ( 中 國北方工業廈門公司 ) from December 1992 to September 1995; deputy section chief of the finance department of Jiangsu International Trust and Investment Company ( 江蘇省國際信託投資公司 ) from October 1995 to August 2002; project manager of the finance department of Guoxin Group from August 2002 to September 2004; head of the finance department (manager assistant) and deputy general manager of Jiangsu International Trust Corporation Limited ( 江蘇省國際信託有限責任公司 ) from September 2004 to December 2009; deputy general manager of the finance department of Guoxin Group from December 2009 to December 2010; (standing) vice president of Jiangsu Guoxin Group Finance Co., Ltd. ( 國信集團財務有限公司 ) from December 2010 to December 2011; president and deputy secretary of the Party Committee of Jiangsu Guoxin Group Finance Co., Ltd. from January 2012 to March 2018; the general manager of finance department of Guoxin Group from March 2018 to December 2024; and the deputy secretary of the Party Committee and director of Jiangsu International Trust Corporation Limited from December 2024 to March 2025. He has been the deputy secretary of the Party Committee, a director and the general manager of Jiangsu International Trust Corporation Limited since March 2025. He has been a Director of the Company since October 2018 with a term of office in current session of the Board from December 2022 to December 2025. Chen Zhongyang Master’s degree in highway, urban road and airport engineering and is a senior engineer of the researcher rank. He served as a staff member and the Deputy Section Chief (presiding over the work) of the Planning Division of the Jiangsu Expressway Command Office from June 1992 to November 2000; and the deputy manager (presiding over the work) of the Operation and Development Department of Jiangsu Jinghu Expressway Co., Ltd. ( 江蘇京滬高速公路有限公司 ) from November 2000 to August 2001; an employee (senior engineer), the Deputy Director and Director of the Road Assets and Interests Section of Jiangsu Communications Industry Group Co., Ltd. ( 江蘇交通產業集團有限公司 ) from August 2001 to October 2004; the Deputy Director of the Operation Safety Department, Deputy Director of the Engineering Technology Department, Deputy Director of the Engineering Technology Department, Deputy Director of the Expansion Project Office, Director of the Expansion Project Office, Deputy Director of the Engineering Technology Department, and Director of Corporate Management and Legal Affairs Department of Jiangsu Communications Holding Co., Ltd. ( 江蘇交通控 股有限公司 ) from October 2004 to November 2017; the Chairman, Party Secretary and General Manager, and Chairman and Party Secretary of Jiangsu Jinghu Expressway Co., Ltd. from November 2017 to April 2019; the Party Secretary and Director of Jiangsu Expressway Operation and Management Center ( 江蘇省高速公路經營管理中心 ) and the assistant to the General Manager of Jiangsu Communications Holding Co., Ltd. from April 2019 to July 2020. He has been the Deputy General Manager and member of the Party Committee of Jiangsu Communications Holding Co., Ltd. since July 2020 (concurrently served as the general counsel from December 2022 to September 2023). He has served as a Director of the Company since June 2022 with a term of office in current session of the Board from December 2022 to December 2025. ![]() 139 Name Primary work experience Ke Xiang Doctoral degree in corporate management and senior engineer. From August 1996 to October 2002, he successively served as staff member of the infrastructure investment division, staff member and deputy senior staff member of the agriculture division of Jiangsu Provincial Department of Finance. From October 2002 to August 2020, he worked at Jiangsu Communications Holding Co., Ltd. and successively served as assistant to the director of the office, deputy director of the office, deputy director of the operation and safety department, deputy director of the Toll Management Center of Expressway Network of Jiangsu Province, director of the Information Center and deputy director of the office, director of the development strategy and policy regulation research office, deputy director of the investment and development department, director of the strategic research office, deputy director of the corporate management and legal affairs department, and director of the strategic planning department. Since August 2020, he has been deputy general manager and member of the party committee of Govtor Capital Group Co., Ltd. Since November 2020, he has been deputy general manager, member of the party committee and general counsel of Govtor Capital Group Co., Ltd. He has been a Director of the Company since February 2021 with a term of office in current session of the Board from December 2022 to December 2025. Liu Changchun Master’s degree in national economy and is a senior political engineer. He served as a cadre, staff member and senior staff member of the Counsellors’ Office of Jiangsu Provincial People’s Government from August 1996 to July 2003; senior staff member of the General Division of the Elderly Cadre Bureau of Jiangsu Provincial Committee from July 2003 to August 2004; senior staff member, principal staff member and deputy director of the General Division (Policy and Regulations Division) of the office of the State-owned Assets Supervision and Administration Commission of Jiangsu Provincial People’s Government (Party Committee Office) from August 2004 to January 2015; deputy general manager (department general manager level), general manager of the strategic planning department, director of the Party Committee office, secretary to the board of directors, director of the office of the board of directors, general manager of the human resources department (organization department of the Party Committee) and deputy director of the Inspection Work Office of the Party Committee of SOHO Holdings from January 2015 to August 2020; vice president, member of the Party Committee and secretary to the board of directors of Jiangsu SOHO Holdings Group Co., Ltd. from August 2020 to September 2020; the vice president, a member of the Party Committee, secretary to the board of directors and general counsel of Jiangsu SOHO Holdings Group Co., Ltd. from September 2020 to September 2024; deputy secretary of the Party Committee of Jiangsu Port Group Co., Ltd. ( 江蘇省港口集 團有限公司 ) from September 2024 to December 2024; and has served as deputy secretary of the Party Committee and director of Jiangsu Port Group Co., Ltd. since December 2024 . He has served as a Director of the Company since November 2023 with a term of office in current session of the Board from December 2022 to December 2025. ![]() 140 Name Primary work experience Zhang Jinxin Doctoral degree in industrial economics. From July 1994 to September 1997, he served as intern researcher in the Institute of Occupational Medicine of the General Research Institute of Coal Science ( 煤炭科學 研究總院職業醫學研究所 ); from March 2000 to September 2001, he served as analyst in the development strategy department of Lenovo Group Limited; from July 2005 to September 2017, he served as the lecturer and associate professor of accounting and deputy head of the accounting department at the School of Economics and Management of Beijing Jiaotong University; from September 2017 to June 2023, he has served as the deputy general manager of the research and planning department of Chengtong Fund Management Company Limited ( 誠通 基金管理有限公司 ) from June 2023 to present, he has served as the general manager of the research and planning department of Chengtong Fund Management Company Limited. He has served as a Director of the Company since December 2022 with a term of office in current session of the Board from December 2022 to December 2025. Wang Jianwen Doctoral degree in civil and commercial law. From August 1998 to May 2006, he taught at Nanjing Tech Law School. From May 2006 to May 2016, he taught at Hohai University School of Law. From May 2016 to April 2021, he has been a professor, doctor-postgraduate supervisor and dean at the College of Humanities and Social Sciences of Nanjing University of Aeronautics and Astronautics, and has been a professor and doctor-postgraduate supervisor at the Law School of Nanjing University and the director of the Competing Policy and Corporate Compliance Research Center of Nanjing University since May 2021. He successively served as member of the legal expert pool of Jiangsu Provincial Party Committee (first session and second session), decision-making advisory expert of the thirteenth session of the Standing Committee of Jiangsu Provincial People’s Congress, legal advisor of Jiangsu Political Consultative Conference (first session and second session), non- permanent member of the selection committee of judges and prosecutors of Jiangsu Province (second session and third session), associate expert of the leader group of the Jiangsu Provincial Administration of Market Regulation, specially invited advisory expert of Nanjing Intermediate People’s Court, legal advisor of Nanjing Qinhuai District Party Committee and other positions. He has been an independent non- executive Director of the Company since June 2020 with a term of office in current session of the Board from December 2022 to December 2025. ![]() 141 Name Primary work experience Wang Quansheng Doctoral degree in business management. He served as a teaching assistant in the Information Center of the Business School of Nanjing University from September 1993 to August 1995; a lecturer in the Information Center of the Business School of Nanjing University from September 1995 to March 2001; an associate professor and the Deputy Dean of the Department of E-commerce of the Business School of Nanjing University from April 2001 to September 2008; an associate professor and the Dean of the Department of E-commerce of the Business School of Nanjing University from September 2008 to December 2010; a professor and the Dean of the Department of E-commerce of the Business School of Nanjing University from January 2011 to July 2013; a professor and the Dean of the Department of Marketing and E-commerce of the Business School of Nanjing University from July 2013 to September 2016; and a professor and the Deputy Dean of the Management School of Nanjing University from September 2016 to November 2020. He has been a professor and the Deputy Dean of the Business School of Nanjing University since November 2020. He has served as an independent non-executive Director of the Company since June 2022 with a term of office in current session of the Board from December 2022 to December 2025. Peng Bing Doctoral degree in international law. From July 1993 to August 1994, he served as employee of Chuzhou Sub-branch, Anhui Branch of the Industrial and Commercial Bank of China; from April 2000 to July 2005, he served as lecturer at the Law School of Peking University; from July 2005 to July 2017, he served as associate professor at the Law School of Peking University; from July 2017 to present, he has served as professor at the Law School of Peking University. At present, he concurrently serves as arbitrator of Shenzhen Court of International Arbitration, arbitrator of Beijing Arbitration Commission, mediator of Shenzhen Securities and Futures Dispute Resolution Centre, and vice president and secretary general of China Business Law Society. He has served as an independent non-executive Director of the Company since December 2022 with a term of office in current session of the Board from December 2022 to December 2025. Wang Bing Doctoral degree in accounting. From July 2007 to December 2011, he served as lecturer in the Department of Accounting of Nanjing University Business School; from December 2011 to December 2016, he served as associate professor in the Department of Accounting of Nanjing University Business School; from December 2016 to January 2022, he served as associate professor and secretary of the party branch of the Department of Accounting of Nanjing University Business School; from January 2022 to December 2022, he served as associate professor, deputy head of the Department and secretary of the party branch of the Department of Accounting of Nanjing University Business School; from December 2022 to January 2024, he served as professor, deputy head of the Department and secretary of the party branch of the Department of Accounting of Nanjing University Business School; from January 2024 to present, he has served as professor and deputy head of the Department of the Department of Accounting of Nanjing University Business School. He has served as an independent non-executive Director of the Company since December 2022 with a term of office in current session of the Board from December 2022 to December 2025. ![]() 142 Name Primary work experience Lo Kin Wing Terry Bachelor’s degree in sociology. From August 1982 to December 1988, he served as the manager of the actuarial department of American International Assurance Company, Limited; from December 1988 to August 1994, he served as the actuary of East Asia Aetna Insurance Company Limited; from August 1994 to December 1995, he served as the financial controller of HSBC Life Insurance Company Limited (Hong Kong); from December 1995 to February 2006, he served as the CEO of Hang Seng Life Limited; from January 1996 to December 2007, he served as the CEO of HSBC Life Insurance Company Limited (Hong Kong); from December 2007 to June 2009, he served as the person in charge of HSBC Life Insurance Company Limited (China) (in preparation); from June 2009 to November 2012, he served as the CEO of HSBC Life Insurance Company Limited (China); from July 2013 to November 2013, he served as the vice president of BOC Group Life Assurance Company Limited (Hong Kong); from November 2013 to September 2019, he served as the executive president of BOC Group Life Assurance Company Limited (Hong Kong); from October 2013 to March 2020, he served as a consultant to BOC Group Life Assurance Company Limited (Hong Kong). He has been an independent non-executive Director of the Company since June 2024 with a term of office in the current session of the Board from December 2022 to December 2025. Gu Chengzhong Master’s degree in coastal engineering. He once worked in Nanjing Public Security Bureau. He joined the Company in May 1998, and once worked as the general manager of Nanjing branch of the Company. He has been the general manager of the compliance and legal affairs department of the Company since January 2019 and an Employee Representative Supervisor of the Company since April 2019. He has been the chairman of Supervisory Committee of the Company since October 2021 with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. ![]() 143 Name Primary work experience Lv Wei Master’s degree in information technology management. From June 2013 to November 2018, he successively served as a staff member, deputy principal staff member and principal staff member of the Foreign Funds Utilization Audit Division of Nanjing Special Commissioner’s Office of the National Audit Office; from November 2018 to March 2023, he successively served as the principal staff member, first-level principal staff member and deputy director of the Financial Audit Division of Nanjing Special Commissioner’s Office of the National Audit Office; from March 2023 to August 2024, he served as the deputy general manager of the Audit Department of Jiangsu Guoxin Investment Group Limited ( 江蘇省國信集團有限公司 ); since August 2024, he has been the deputy general manager of Jiangsu Investment Management Co. Ltd ( 江蘇省投資管理有限責任公司 ). He has served as Supervisor of the Company since June 2024 with a term of office in the current session of the Supervisory Committee from December 2022 to December 2025. Yu Lanying Master’s degree in industrial economics, a principal senior accountant and certified public accountant. She served at the finance department of Nanjing Runtai Industrial Trading Company ( 南京潤泰實業貿 易公司 ) from August 1993 to August 1996. She pursued master’s studies of industrial economics in Nanjing University of Science and Technology ( 南京理工大學 ) from September 1996 to April 1999, served at the finance and audit department of Jiangsu United Trust and Investment Company ( 江蘇聯合信託投資公司 ) from May 1999 to December 2002. She worked at the finance and audit division of Jiangsu Communications Industry Group Co., Ltd. ( 江蘇交通產業集團 有限公司 ) from January 2003 to September 2004, the finance and audit department of Jiangsu Communications Holding Co., Ltd. ( 江蘇交通控 股有限公司 ) from October 2004 to May 2008. She successively served as the deputy manager (in charge of work), manager of the finance and accounting division, deputy chief financial officer (departmental level), chief financial officer and member of the Party Committee of Jiangsu Expressway Company Limited ( 江蘇寧滬高速公路股份有限公司 ) from June 2008 to November 2016. She served as the deputy general manager, chief financial officer and member of the Party Committee of Jiangsu Expressway Company Limited from November 2016 to March 2018, head of the audit and risk control department of Jiangsu Communications Holding Co., Ltd. from March 2018 to August 2018 and has served as head of the audit and risk control department and supervisor of audit center of Jiangsu Communications Holding Co., Ltd. from August 2018 to November 2019, head of the financial management department of Jiangsu Communications Holding Co., Ltd. since November 2019 to June 2022, assistant to the general manager and head of the financial management department of Jiangsu Communications Holding Co., Ltd. from June 2022 to August 2023, and chief accountant and member of the party committee of Jiangsu Communications Holding Co., Ltd. since August 2023. She has served concurrently as Supervisor of the Company since October 2018, with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. ![]() 144 Name Primary work experience Zhang Xiaohong Master’s degree in business administration and is an international business operator. Ms. Zhang served as the export sales manager of Nanjing Native Produce and Animal Byproducts Import and Export Co., Ltd. ( 南京市土產畜產進出口股份公司 ) from August 1989 to April 1997; assistant to the manager and manager of Jiangsu Xinsu Investment Management Co., Ltd. ( 江蘇鑫蘇投資管理有限公司 ) from April 1997 to November 2000; manager of Jiangsu Venture Capital Co., Ltd. ( 江蘇省 創業投資有限公司 ) from December 2000 to May 2005; senior manager, deputy general manager of the asset management department, general manager of the asset management department and general manager of the investment operations department of Govtor Capital Group Co., Ltd. ( 江蘇高科技投資集團有限公司 ) from May 2005 to July 2020; and vice general manager of Govtor Capital Group Co., Ltd. since July 2020. She has served as a Supervisor of the Company since December 2019, with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. Zhou Hongrong College degree in financial accounting and international trade and is a principal senior accountant. From August 1993 to May 2003, she served as clerk of the garment finance division and deputy section chief of the garment finance and accounting division of the asset finance department of Jiangsu Silk Import & Export Group Co. Ltd.; from May 2003 to January 2010, she served as deputy section chief of the garment finance and accounting division, deputy section chief of the second accounting division, deputy section chief of the light textile finance and accounting division, and head of the light textile finance and accounting division of the finance department of Jiangsu SOHO International Group Corp.; from January 2010 to March 2012, she served as assistant to the general manager of the asset and finance department of Jiangsu Silk Group Corporation; from March 2012 to December 2020, she served as deputy general manager of asset and finance department and general manager of asset and finance department of Jiangsu SOHO Holdings Group Co., Ltd.; from December 2020 to present, she has served as vice president and member of the party committee of Jiangsu SOHO Holdings Group Co., Ltd.; from August 2023 to present, she has served as chief accountant and party committee member of Jiangsu SOHO Holdings Group Co., Ltd. She has served as Supervisor of the Company since December 2022 with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. ![]() 145 Name Primary work experience Wang Ying Master’s degree in public administration. She once worked in the organization department of the Municipal Committee of Yangzhong and the Municipal Party Committee of Youth League in Yangzhong, and once served as deputy division chief of the public working division, deputy division chief of the Party construction work division and deputy division chief of the enterprise leadership personnel management division of the State-owned Assets Supervision and Administration Commission of Jiangsu Provincial People’s Government, etc. She joined the Company in January 2016, and has served as the head of the Communist Party union working department of the Company since April 2016, an Employee Representative Supervisor of the Company since December 2019, and the chairman of labor union of the Company since December 2021, with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. Wang Juan Master of scientific socialist legal system construction. She once worked in the Publicity Department of the CPC Jiangsu Provincial Committee, and once served as a deputy director (presiding over the work), the head of the Communist Party union working department of the General Administration Department of Jiangsu Cultural Investment & Management Group Co., Ltd., etc., during which, she once also served as an executive director and the general manager of Jiangsu Zijin Cultural and Creative Industry Development Company Limited. From July 2020 to February 2023, she served as the deputy director of the Office of the Company. She has been the Employee Representative Supervisor of the Company since October 2021, and the director of the Office of the Company since February 2023, with a term of office in current session of the Supervisory Committee from December 2022 to December 2025. ![]() 146 Name Primary work experience Han Zhencong Doctor of management science and engineering and is a senior economist. He served as a member of the Leading Party Members’ Group and deputy general manager of China Telecom Jiangsu Company Limited ( 中國電 信江蘇公司 ); the secretary of the Leading Party Members’ Group and general manager of China Telecom Heilongjiang Company Limited; the general manager of the government and enterprise customer business division of China Telecom, and the secretary of the Party Committee and general manager of China Telecom Zhejiang Company Limited, etc. He joined the Company in December 2019 and has been a member of the Executive Committee and the chief information officer of the Company since April 2022 with a term of office in current session of the senior management from December 2022 to December 2025. Sun Hanlin Master of business administration, Mr. Sun once worked at Jiangsu Branch of the PBOC. He joined the Company in August 1997, and worked as the chief of human resources division, chief of the organization department, general manager of the human resources department, secretary of the discipline inspection commission, chief inspection officer, a member of the Party Committee and vice president of the Company, etc. He has been a member of Executive Committee of the Company since December 2019 with a term of office in current session of the senior management from December 2022 to December 2025. ![]() 147 Name Primary work experience Jiang Jian Master of agricultural economics and management. Mr. Jiang once worked at Nanjing Agricultural University ( 南京農業大學 ). He joined the Company in December 1994, and once served as the deputy general manager of the investment banking head office, the general manager of the asset management head office, general manager of the investment banking business Nanjing head office, director of investment banking business and general manager of Nanjing head office, the secretary to the Board of Directors, vice president and a member of the Party Committee of the Company, etc. He has been a member of Executive Committee of the Company since December 2019 with a term of office in current session of the senior management from December 2022 to December 2025. Zhang Hui Doctor of technology economics and management. He joined the Company in February 2003, and once served as a senior manager of the asset management head office, deputy general manager of the business office at Nantong Yaogang Road, the general manager of the business office at Shanghai Ruijin First Road, deputy general manager of securities investment department, the general manager of the general affairs department, the general manager of the human resources department and head of the organization department of the Party Committee of the Company. He has been the secretary to the Board of Directors since April 2017, a member of the Executive Committee since December 2019 and party committee member of the Company since July 2022, with a term of office in current session of the senior management from December 2022 to December 2025. ![]() 148 Name Primary work experience Chen Tianxiang Master’s degree in control science and engineering. Mr. Chen once worked at Eastcom Co., Ltd. ( 東方通信股份有限公司 ) and Nanjing Xinwang Telecom Tech Co., Ltd. ( 南京欣網視訊科技股份有限公司 ). He joined the Company in September 2007, and once served as the deputy general manager of the head office of brokerage business, deputy general manager of the internet finance department (in charge of work), general manager of the internet finance department of the Company, etc. He has been a member of the Executive Committee of the Company since February 2020, with a term of office in current session of the senior management from December 2022 to December 2025. Jiao Xiaoning Master’s degree of accounting, an accountant. She once worked at Industrial and Commercial Bank of China Beijing Branch as well as the accounting department of Ministry of Finance ( 財政部 ). She once served as deputy inspector and deputy director of the accounting department of the CSRC, etc. She joined the Company in January 2020 and has been the chief financial officer of the Company since March 2020, with a term of office in current session of the senior management from December 2022 to December 2025. Jiao Kai Doctor of finance. Mr. Jiao was once the director of board of governors office and deputy director of executive office, director of CPC Committee Office and director of board of supervisors office, director of Beijing center, general manager of membership department of Shanghai Stock Exchange, etc. He joined the Company in December 2019 serving as the general legal counsel of the Company and has been the chief compliance officer and general legal counsel of the Company since February 2020 with a term of office in current session of the senior management from December 2022 to December 2025. ![]() 149 Name Primary work experience Wang Chong Master of computer and finance. Mr. Wang once worked at the treasury department/global financial marketing department of Bank of China ( 中 國銀行 ), the London Branch of Bank of China, JP Morgan (UK), China International Capital Corporation (UK) Limited ( 中國國際金融有限公司 ( 英國 )). He joined the Company in December 2014, and once served as general manager of risk management department of the Company. He has been the chief risk officer of the Company since March 2017 with a term of office in current session of the senior management from December 2022 to December 2025. Sun Yan Bachelor of statistics. She joined the Company in August 1994, and once served as the compensation and benefits manager of the human resources department, the assistant to the general manager of the human resources department and the deputy general manager of the human resources department of the Company, etc. She has been the general manager of the human resources department and head of the organization department of the Party Committee of the Company since March 2019; and director of human resources of the Company since December 2022. She has been a member of the party committee of the Company since October 2023 with a term of office in current session of the senior management from December 2022 to December 2025. ![]() 150 (II) Employment of Directors, Supervisors and senior management at present and those retired during the Reporting Period 1. Employment at the Shareholders ’ companies Name of employee Name of the Shareholder’s companies Position Commencement of the term of office Expiration of the term of office Ding Feng Jiangsu Guoxin Investment Group Limited General manager of the finance department March 8, 2018 December 18, 2024 Chen Zhongyang Jiangsu Communications Holding Co., Ltd. Deputy general manager, party committee member June 8, 2020 – Ke Xiang Govtor Capital Group Co., Ltd. Deputy general manager, party committee member August 17, 2020 – General legal counsel November 11, 2020 – Liu Changchun Jiangsu SOHO Holdings Group Co., Ltd. Vice president, party committee member August 14, 2020 September 27, 2024 Secretary to the board of directors May 25, 2017 – General legal counsel September 28, 2020 – Lv Wei Jiangsu Guoxin Investment Group Limited Deputy general manager of the audit department March 17, 2023 August 5, 2024 Yu Lanying Jiangsu Communications Holding Co., Ltd. Chief accountant, party committee member August 28, 2023 – Zhang Xiaohong Govtor Capital Group Deputy general manager July 8, 2020 – Zhou Hongrong Jiangsu SOHO Holdings Group Co., Ltd. Party committee member Chief accountant December 10, 2020 August 23, 2023 – – Explanation of the employment at the Shareholders’ Companies Nil ![]() 151 2. Employment at other companies Name of employee Name of other companies Position Commencement of the term of office Expiration of the term of office Zhou Yi Huatai Financial Holdings (Hong Kong) Limited Director November 28, 2006 – AssetMark Financial Holdings, Inc. Director October 31, 2016 September 5, 2024 CSOP Asset Management Limited ( 南方東 英資產管理有限公司 ) Chairman November 7, 2017 – China Southern Asset Management Co., Ltd. ( 南方基金管理股份有限公司 ) Chairman May 27, 2022 – Huatai Securities (Singapore) Pte. Limited Director September 20, 2022 – Ding Feng Jiangsu United Credit Service Co., Ltd. ( 江 蘇省聯合征信有限公司 ) Director June 14, 2019 November 27, 2024 Jiangsu Guoxin Credit Financing Guarantee Co., Ltd. ( 江蘇省國信信用融資擔保有 限公司 ) Director August 12, 2019 – Zking Property & Casualty Insurance Co., Ltd. ( 紫金財產保險股份有限公司 ) Director February 20, 2021 – Lian Life Co., Ltd. ( 利安人壽股份有限公 司 ) Director February 8, 2023 – Jiangsu International Trust Corporation Limited ( 江蘇省國際信託有限責任公司 ) Vice chairman March 22, 2024 December 19, 2024 Deputy secretary of the party committee, director, general manager (proposed) December 19, 2024 – Chen Zhongyang Jinling Hotel Co., Ltd. ( 金陵飯店股份有限 公司 ) Director May 25, 2021 June 12, 2024 Ke Xiang Jiangsu Addor Huijing Asset Management Co., Ltd. ( 江蘇毅達匯景資產管理有限 公司 ) Director November 4, 2020 – Jiangsu Govtor Asset Management Co., Ltd. ( 江蘇高投資產管理有限公司 ) Director, general manager December 8, 2020 – Jiangsu Fenghai New Energy Seawater Desalination Development Co., Ltd. ( 江 蘇豐海新能源淡化海水發展有限公司 ) Director December 18, 2020 – Liu Changchun Jiangsu Port Group Co., Ltd. Deputy secretary of the party committee September 27, 2024 – Director December 3, 2024 – ![]() 152 Name of employee Name of other companies Position Commencement of the term of office Expiration of the term of office Zhang Jinxin Shanxi Jinbo Bio-Pharmaceutical Co., Ltd. ( 山西錦波生物醫藥股份有限公司 ) Independent director March 12, 2020 – Beijing Tiandetai Technology Company Limited ( 北京天德泰科技股份有限公司 ) Independent director April 28, 2020 May 14, 2024 Gkht (Beijing) Medical Technology Co., Ltd. ( 國科恒泰 ( 北京 ) 醫療科技股份有限 公司 ) Independent director December 12, 2022 – Chengtong Fund Management Company Limited ( 誠通基金管理有限公司 ) General manager of the research and planning department June 5, 2023 – Wang Jianwen Changshu Feifan Metalwork Co., Ltd. ( 常熟 非凡新材股份有限公司 ) Independent director April 15, 2021 – Law School of Nanjing University Professor May 1, 2021 – Tongfu Microelectronics Co., Ltd. ( 通富微 電子股份有限公司 ) Independent director December 16, 2021 – Nanjing Xinjiekou Department Store Co., Ltd. ( 南京新街口百貨商店股份有限公 司 ) Independent director January 17, 2023 – Trinapower Co., Ltd. ( 天合富家能源股份有 限公司 ) Independent director April 23, 2023 – Wang Quansheng Business School of Nanjing University Professor December 31, 2010 – Deputy dean November 30, 2020 – Nanjing Iron & Steel Co., Ltd. ( 南京鋼鐵股份有限公司 ) Independent director June 30, 2022 – Peng Bing Law School of Peking University Professor April 1, 2000 – Bank of Tianjin Co., Ltd. Independent director January 27, 2025 – Wang Bing HIT Welding Industry Co., Ltd. ( 哈焊所華 通 ( 常州 ) 焊業股份有限公司 ) Independent director June 1, 2019 March 19, 2024 Kuangda Technology Group Co. Ltd. ( 曠達科技集團股份有限公司 ) Independent director May 12, 2020 – Jiangsu Jiuwu High-Tech Co., Ltd. ( 江蘇久吾高科技股份有限公司 ) Independent director June 20, 2022 – Department of Accounting of the Business School of Nanjing University Professor December 31, 2022 – Lo Kin Wing Terry Insurance Authority (Hong Kong) Non-executive director December 28, 2021 – Gu Chengzhong Huatai Purple Gold Investment Co., Ltd. ( 華泰紫金投資有限責任公司 ) Supervisor January 18, 2019 – Jiangsu Equity Exchange Co., Ltd. ( 江蘇股權交易中心有限責任公司 ) Supervisor March 18, 2020 January 20, 2025 ![]() 153 Name of employee Name of other companies Position Commencement of the term of office Expiration of the term of office Lv Wei Jiangsu Software Industry Co., Ltd. ( 江蘇 省軟件產業股份有限公司 ) Director July 20, 2023 – Jiangsu Coastal Gas Pipeline Co., Ltd. ( 江 蘇省沿海輸氣管道有限公司 ) Chairman of the supervisory committee August 2, 2023 – Jiangsu Guoxin Group (Ningguo) Pumped Storage Power Generation Co., Ltd. ( 江 蘇省國信集團 ( 寧國 ) 抽水蓄能發電有限 公司 ) Chairman of the supervisory committee September 22, 2023 November 29, 2024 Hong Kong Broadsino Investment Co., Ltd. Chairman of the supervisory committee October 30, 2023 – Jiangsu Investment Management Co., Ltd. ( 江蘇省投資管理有限責任公司 ) Deputy general manager August 5, 2024 – Wuxi Innovation Investment Group Co., Ltd. ( 無錫市創新投資集團有限公司 ) Director January 17, 2025 – Yu Lanying Jiangsu Re-guarantee Group Co., Ltd. ( 江蘇省信用再擔保集團有限公司 ) Supervisor May 27, 2018 August 12, 2024 Jiangsu Salt Industry Group Co., Ltd. ( 江蘇省鹽業集團有限責任公司 ) Chairman of the supervisory committee December 3, 2018 – Jiangsu Jinsuzheng Investment and Development Co., Ltd. ( 江蘇金蘇證投資發展有限公司 ) Director December 3, 2018 – Bank of Nanjing Co., Ltd. ( 南京銀行股份有限公司 ) Director September 16, 2020 January 8, 2024 Jiangsu Financial Leasing Co., Ltd. ( 江蘇金融租賃股份有限公司 ) Director February 7, 2024 – Bank of Jiangsu Co., Ltd. ( 江蘇銀行股份有 限公司 ) Director May 17, 2024 – Jiangsu Railway Group Co., Ltd. ( 江蘇省 鐵路集團有限公司 ) Chairman of the supervisory committee June 21, 2024 – Zhang Xiaohong Jiangsu Talent Innovation and Venture Service Center Co., Ltd. ( 江蘇省人才創新創業服務中心 有限公司 ) Legal representative, executive director and general manager October 9, 2019 – Jiangsu Govtor Asset Management Co., Ltd. ( 江蘇高投資產管理有限公司 ) Legal representative, chairman August 26, 2021 – Jiangsu Xinxin Retail Innovation Fund (Limited Partnership) ( 江蘇新新零售創 新基金 ( 有限合夥 )) Designated representative of executive partner August 26, 2021 – Jiangsu Govtor Innovation Investment Co., Ltd. ( 江蘇高投創新投資有限責任公司 ) Legal representative, executive director April 18, 2023 – Jiangsu Addor Equity Investment Fund Management Co., Ltd. ( 江蘇毅達股權投資基金管理有限公司 ) Supervisor June 26, 2023 – ![]() 154 Name of employee Name of other companies Position Commencement of the term of office Expiration of the term of office Jiangsu Strategic and Emerging Industries Parent Fund Co., Ltd. ( 江蘇省戰略性新 興產業母基金有限公司 ) Supervisor September 21, 2023 – Wuxi Zhanxin Private Fund Management Co., Ltd. ( 無錫戰新私募基金管理有限 公司 ) Director August 16, 2024 – Han Zhencong Huatai International Financial Holdings Company Limited ( 華泰國際金融控股有 限公司 ) Director October 2, 2024 – Sun Hanlin Jiangsu Equity Exchange Co., Ltd. ( 江蘇股 權交易中心有限責任公司 ) Legal representative, chairman March 1, 2021 March 6, 2024 Jiang Jian Bank of Jiangsu Co., Ltd. ( 江蘇銀行股份有 限公司 ) Director May 16, 2012 – Zhang Hui China Southern Asset Management Co., Ltd. ( 南方基金管理股份有限公司 ) Director October 18, 2016 – Chen Tianxiang Huatai Securities (Shanghai) Asset Management Co., Ltd. ( 華泰證券 ( 上海 ) 資產管理有限公司 ) Director March 30, 2018 – Jiao Xiaoning AssetMark Financial Holdings, Inc. Chairman April 21, 2020 September 5, 2024 Huatai Securities (Shanghai) Asset Management Co., Ltd. ( 華泰證券 ( 上海 ) 資產管理有限公司 ) Director August 10, 2020 – Huatai International Financial Holdings Company Limited ( 華泰國際金融控股有 限公司 ) Director October 2, 2024 – Wang Chong Huatai International Financial Holdings Company Limited ( 華泰國際金融控股有 限公司 ) Director February 28, 2018 – Huatai Financial Holdings (Hong Kong) Limited ( 華泰金融控股 ( 香港 ) 有限公司 ) Chief risk officer July 30, 2018 – Huatai Securities USA Holdings, Inc. Director September 28, 2018 – Huatai Securities (USA), Inc. Director September 28, 2018 – Tse Yung Hoi BOCI-Prudential Asset Management Limited Chairman January 24, 2003 – BOCOM International Holdings Company Limited Independent director June 26, 2014 – Qianhai Financial Holding Limited Independent director July 21, 2014 March 1, 2024 Vico International Holdings Limited Independent director January 16, 2018 March 1, 2024 Li Chongqi Jiangsu Railway Group Co., Ltd. Director May 20, 2020 June 21, 2024 ( 江蘇省鐵路集團有限公司 ) Chief accountant, party committee member August 28, 2023 – Jiangsu Radio and Television Information Network Investment Company Limited ( 江蘇省廣播電視信息網絡投資有限公 司 ) Vice chairman May 20, 2020 – Explanation of other jobs Nil ![]() 155 (III) Remuneration of the Directors, Supervisors and senior management Currency: RMB Decision-making procedures of remuneration of the Directors, Supervisors and senior management The Remuneration and Appraisal Committee of the Board is responsible for advising the Board on the remuneration structure and policies of the Directors and senior management of the Company. The Board makes decisions on matters relating to the remuneration of and reward and punishment of senior management in accordance with relevant policies, and matters relating to the remuneration of Directors and Supervisors shall be determined at the general meeting. Whether the Director abstains from discussion on his/her remuneration at the Board meeting Yes Recommendation on salaries of the Directors, Supervisors and senior management from the Remuneration and Appraisal Committee or the special meeting of the independent Directors On March 27, 2025, the Remuneration and Appraisal Committee of the sixth session of the Board of the Company considered and approved the Report on Performance Assessment and Remuneration of the Supervisors of the Company for 2024 and the Report on Performance of Duties, Performance Assessment and Remuneration of the Senior Management of the Company for 2024 at its 2025 first meeting, and agreed to submit these two resolutions to the Board of the Company for consideration. The basis for determining the remuneration of the Directors, Supervisors and senior management The external Directors and external Supervisors of the Company do not receive remuneration from the Company; standard of remuneration of the independent Directors is determined with reference to that of the listed peers and based on actual situation of the Company; remuneration of internal Directors, employee representative Supervisors and the senior management applies relevant policies of competent authorities and the remuneration assessment system of the Company, and determined in accordance with the Company’s operation, job responsibilities and the result of annual and tenure performance, as it is linked to position and performance. ![]() 156 Actual payments of remuneration of the Directors, Supervisors and senior management Please refer to “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” in this report for details. Total remuneration actually obtained by all Directors, Supervisors and senior management at the end of the Reporting Period Please refer to “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” in this report for details. (IV) Changes in Directors, Supervisors and senior management Name Position Change Reason for Change Lo Kin Wing Terry Independent non-executive Director Elected Elected at the 2023 annual general meeting Lv Wei Supervisor Elected Elected at the 2023 annual general meeting Yin Lihong Executive Director Resigned Due to work adjustment, she will no longer serve as an executive Director of the Company Tse Yung Hoi Independent non-executive Director Resigned Due to work reasons, he will no longer serve as an independent non-executive Director of the Company Li Chongqi Supervisor Resigned Due to work reasons, she will no longer serve as a Supervisor of the Company Notes: 1. On April 29, 2024, the Board of the Company received a written resignation report from Mr. Tse Yung Hoi, an independent non-executive Director. Mr. Tse Yung Hoi has proposed to resign as an independent non-executive Director of the sixth session of the Board of the Company and a member of the Audit Committee of the Board due to work reasons. As the resignation of Mr. Tse Yung Hoi will cause the proportion of independent non-executive Directors of the Company to the total members of the Board to be less than one-third, Mr. Tse Yung Hoi has promised to continue to perform his duties until the date when a new independent non-executive Director is appointed. There is no disagreement between Mr. Tse Yung Hoi and the Board of the Company, and there is no matter in relation to his resignation that needs to be notified to the shareholders of the Company. Mr. Tse Yung Hoi has also confirmed that he is not a party involved in any on-going or pending litigation or dispute against the Company. ![]() 157 2. According to the relevant requirements of the Rules for Governance of Securities Companies ( 《證 券公司治理準則》 ) promulgated by the CSRC and the Articles of Association, Shareholder(s) severally or jointly holding no less than 3% of the outstanding voting shares of the Company may recommend candidates for Supervisors (non-employee representative Supervisors) to the Supervisory Committee. As Guoxin Group, a shareholder holding more than 3% of the outstanding voting shares of the Company, has nominated Mr. Lv Wei as a candidate for non-employee representative Supervisor of the sixth session of the Supervisory Committee, Ms. Li Chongqi will cease to be a non-employee representative Supervisor of the sixth session of the Supervisory Committee due to business commitments. There is no disagreement between Ms. Li Chongqi and the Supervisory Committee, and there is no matter in relation to her resignation that needs to be notified to the shareholders of the Company. 3. On June 20, 2024, the Resolution on the Election of Mr. Lo Kin Wing Terry as an Independent Non-executive Director of the Sixth Session of the Board and the Resolution on the Election of Mr. Lv Wei as a Non-employee Representative Supervisor of the Sixth Session of the Supervisory Committee were considered and approved at the 2023 Annual General Meeting of the Company. From June 20, 2024, Mr. Lo Kin Wing Terry performed his duty as an independent non-executive Director of the sixth session of the Board of the Company succeeding Mr. Tse Yung Hoi for a term until the end of the term of the current session of the Board; Mr. Lv Wei performed his duty as a Supervisor of the sixth session of the Supervisory Committee of the Company succeeding Ms. Li Chongqi for a term until the end of the term of the current session of the Supervisory Committee. 4. Mr. Lo Kin Wing Terry obtained the legal advice as required under Rule 3.09D of the Hong Kong Listing Rules on June 20, 2024, and has confirmed that he understood his obligations as a director of the Company. 5. On March 14, 2025, the Board of the Company received a written resignation report from Ms. Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign from her positions as an executive Director of the sixth session of the Board of the Company and as a member of the Nomination Committee of the Board due to work adjustment, upon which she no longer holds any position in the Company. Ms. Yin Lihong has no unfulfilled public commitments or obligations, there is no disagreement between her and the Board of the Company, and there is no matter in relation to her resignation that needs to be notified to the shareholders and creditors of the Company. Ms. Yin Lihong has also confirmed that she is not a party involved in any on-going or pending litigation or dispute against the Company. Save as disclosed above, the Company did not appoint or dismiss any Director, Supervisor or senior management during the Reporting Period. Meanwhile, there is no change of information about the Directors, Supervisors and chief executives which shall be disclosed pursuant to Rule 13.51(2) of the Hong Kong Listing Rules. (V) As of the end of the Reporting Period, none of the incumbent Directors, Supervisors and senior management or Directors, Supervisors or senior management who left office during the Reporting Period had been subject to any penalty imposed by the securities regulatory authorities during the last three years. ![]() 158 V. MEETINGS OF THE BOARD CONVENED DURING THE REPORTING PERIOD Meeting Convening date Meeting form and place Meeting motion Status The seventh Meeting of the Sixth Session of the Board March 28, 2024 By means of onsite & video meetings. Address: Large Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228, Middle Jiangdong Road, Nanjing; Conference Room 6, Floor 18, Building A, China Pacific Insurance Plaza, No. 28 Fengsheng Alley, Xicheng District, Beijing; Simulated Video Conference Room, Shanghai Branch Office of Huatai Securities, Floor 25, Poly Plaza, No. 18, Dongfang Road, Pudong New Area, Shanghai; Simulated Video Beijing Conference Room, Huatai Financial Holdings (Hong Kong) Limited, 62/F, The Center, 99 Queen’s Road Central, Hong Kong. 1. To consider the 2023 Work Report of the Senior Management of the Company; 2. To consider the 2023 Final Financial Report of the Company; 3. To consider the 2024 Financial Budget Report of the Company; 4. To consider the Proposal on the 2023 Profit Distribution of the Company; 5. To consider the 2023 Work Report of the Board of the Company; 6. To consider the Resolution on the 2023 Annual Report of the Company; 7. To consider the Resolution on the 2023 Annual Compliance Report of the Company; 8. To consider the Resolution on the 2023 Annual Risk Management Report of the Company; 9. To consider the Resolution on the 2023 Annual Internal Control Evaluation Report of the Company; 10. To consider the Resolution on the Special Report on Information Technology Management and Network and Information Security Management of the Company for 2023; 11. To consider the Resolution on the 2023 Corporate Social Responsibility Report of the Company; 12. To consider the Proposal on the estimated ordinary transactions with related parties of the Company for 2024; 13. To consider the Proposal on the estimated investment amount for the proprietary business of the Company for 2024; 14. To consider the Internal Audit Work Plan of the Company for 2024; 15. To consider the Resolution on the Re-appointment of the Accounting Firms for 2024 of the Company; 16. To consider the Resolution on Amendments to the Administrative Measures for System Construction of Huatai Securities Co., Ltd.; 17. To consider the Resolution on Amendments to the System regarding Insider Registration, Management and Confidentiality of Huatai Securities Co., Ltd.; 18. To consider the Report on Performance Assessment and Remuneration of Directors of the Company for 2023; 19. To consider the Report on Execution of Duty, Performance Assessment and Remuneration of the Senior Management of the Company for 2023; 20. To consider the Report on Performance of Duties of the Independent Directors of the Company for 2023; 21. To consider the Resolution on Convening the 2023 Annual General Meeting of the Company; 22. Debriefing of the Report on Independence Self-examination by the Independent Directors of the Company; 23. Debriefing of the Special Opinions of the Board of the Company on Independence of the Independent Directors; 24. Debriefing of the Report on Performance of Duties by the Audit Committee of the Board of the Company for 2023; 25. Debriefing of the Evaluation Report on Performance of Duties by the Annual Audit Accounting Firm for 2023 of the Company; All resolutions were considered and approved. ![]() 159 Meeting Convening date Meeting form and place Meeting motion Status 26. Debriefing of the Report on Performance of Supervisory Duties by the Annual Audit Accounting Firm for 2023 of the Audit Committee of the Board of the Company; 27. Debriefing of the Work Report of the Chief Compliance Officer of the Company for 2023; 28. Debriefing of the Work Report on Anti-money Laundering of the Company for 2023; 29. Debriefing of the Report on Internal Audit of the Company for 2023; 30. Review of the Report on Net Capital and Other Risk Control Indicators of the Company for 2023. The Eighth Meeting of the Sixth Session of the Board April 12, 2024 By means of teleconference. 1. To consider the Resolution on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company; 2. To consider the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company; 3. To consider the Resolutions on Addition to Agenda of the 2023 Annual General Meeting of the Company and Convening the 2024 First A Share Class Meeting and the 2024 First H Share Class Meeting. All resolutions were considered and approved. The Ninth Meeting of the Sixth Session of the Board April 25, 2024 By means of onsite & video meetings. Address: Large Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228, Middle Jiangdong Road, Nanjing; Conference Room 6, Floor 18, Building A, China Pacific Insurance Plaza, No. 28 Fengsheng Alley, Xicheng District, Beijing; Simulated Video Conference Room, Shanghai Branch Office of Huatai Securities, Floor 25, Poly Plaza, No. 18, Dongfang Road, Pudong New Area, Shanghai; Simulated Video Beijing Conference Room, Huatai Financial Holdings (Hong Kong) Limited, 62/F, The Center, 99 Queen’s Road Central, Hong Kong. To consider the Resolution on Disposal of the Entire Equity Interests in AssetMark Financial Holdings, Inc. (a Holding Subsidiary in the United States) through Direct Agreement. The resolution was considered and approved. ![]() 160 Meeting Convening date Meeting form and place Meeting motion Status The Tenth Meeting of the Sixth Session of the Board April 29, 2024 By means of onsite & video meetings. Address: Large Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228, Middle Jiangdong Road, Nanjing; Conference Room 6, Floor 18, Building A, China Pacific Insurance Plaza, No. 28 Fengsheng Alley, Xicheng District, Beijing; Simulated Video Conference Room, Shanghai Branch Office of Huatai Securities, Floor 25, Poly Plaza, No. 18, Dongfang Road, Pudong New Area, Shanghai; Simulated Video Beijing Conference Room, Huatai Financial Holdings (Hong Kong) Limited, 62/F, The Center, 99 Queen’s Road Central, Hong Kong. 1. To consider the Resolution on the First Quarterly Report of the Company for 2024; 2. To consider the Proposal on the Election of an Independent Non-executive Director of the Sixth Session of the Board of the Company; 3. To consider the Resolution on Proposal to the General Meeting to Authorize the Board to Decide on the Interim Profit Distribution for 2024; 4. To consider the Resolution on Addition to Agenda of the 2023 Annual General Meeting of the Company. All resolutions were considered and approved. The Eleventh Meeting of the Sixth Session of the Board June 20, 2024 By means of teleconference. 1. To consider the Resolution on the 2024 Action Plan of “Corporate Value and Return Enhancement” of the Company; 2. To consider the Resolution on the Formulation of the Internal Audit Management System of Huatai Securities Co., Ltd.; 3. To consider the Resolution on the Adjustment to the Composition Plan of Certain Special Committees of the Sixth Session of the Board of the Company. All resolutions were considered and approved. ![]() 161 Meeting Convening date Meeting form and place Meeting motion Status The Twelfth Meeting of the Sixth Session of the Board August 30, 2024 By means of onsite & video meetings. Address: Large Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228, Middle Jiangdong Road, Nanjing; Conference Room 6, Floor 18, Building A, China Pacific Insurance Plaza, No. 28 Fengsheng Alley, Xicheng District, Beijing; Simulated Video Conference Room, Shanghai Branch Office of Huatai Securities, Floor 25, Poly Plaza, No. 18, Dongfang Road, Pudong New Area, Shanghai; Simulated Video Beijing Conference Room, Huatai Financial Holdings (Hong Kong) Limited, 62/F, The Center, 99 Queen’s Road Central, Hong Kong. 1. To consider the Resolution on the 2024 Interim Report of the Company; 2. To consider the Resolution on Adjustment to the Repurchase Price Applicable to the Restricted Share Incentive Scheme of A Shares of the Company; 3. To consider the Resolution on Interim Profit Distribution of the Company for 2024; 4. Review of the Report on Net Capital and Other Risk Control Indicators of the Company for the first half of 2024. All resolutions were considered and approved. ![]() 162 Meeting Convening date Meeting form and place Meeting motion Status The Thirteenth Meeting of the Sixth Session of the Board October 30, 2024 By means of onsite & video meetings. Address: Large Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228, Middle Jiangdong Road, Nanjing; Conference Room 6, Floor 18, Building A, China Pacific Insurance Plaza, No. 28 Fengsheng Alley, Xicheng District, Beijing; Simulated Video Conference Room, Shanghai Branch Office of Huatai Securities, Floor 25, Poly Plaza, No. 18, Dongfang Road, Pudong New Area, Shanghai; Simulated Video Beijing Conference Room, Huatai Financial Holdings (Hong Kong) Limited, 62/F, The Center, 99 Queen’s Road Central, Hong Kong. 1. To consider the Resolution on the Third Quarterly Report of the Company for 2024; 2. To consider the Resolution on Amendments to the Basic System for Anti-Money Laundering and Anti-Terrorism Financing of Huatai Securities Co., Ltd. All resolutions were considered and approved. The Fourteenth Meeting of the Sixth Session of the Board December 20, 2024 By means of teleconference. 1. To consider the Resolution on the transfer of 20% equity interest in Jiangsu Equity Exchange Co., Ltd.; 2. To consider the Resolution on Amendments to the Administrative System regarding the Shares of the Company Held by Directors, Supervisors and Senior Management of Huatai Securities Co., Ltd.; 3. To consider the Resolution on Amendments to the Remuneration Management System of Huatai Securities Co., Ltd. All resolutions were considered and approved. Note: Details of relevant announcements on the resolutions of the Board can be found on the website of the Shanghai Stock Exchange (https://www.sse.com.cn), the HKEXnews website of the HKEX (https://www.hkexnews.hk) and our Company’s website (https://www.htsc.com.cn) and China Securities Journal, Shanghai Securities News, Securities Daily as well as Securities Times. ![]() 163 VI. MEETINGS OF THE SUPERVISORY COMMITTEE CONVENED DURING THE REPORTING PERIOD Meeting Convening date Meeting form and place Meeting motion Status The Sixth Meeting of the Sixth Session of the Supervisory Committee March 28, 2024 By means of on-site & video meetings. Address: Small Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228 Middle Jiangdong Road, Nanjing. 1. To consider the 2023 Work Report of the Supervisory Committee of the Company; 2. To consider the Proposal on the 2023 Profit Distribution of the Company; 3. To consider the resolution on the 2023 Annual Report of the Company; 4. To consider the resolution on the 2023 Annual Internal Control Evaluation Report of the Company; 5. To consider the Report on Performance Assessment and Remuneration of the Supervisors of the Company for 2023; 6. Debriefing of the Report on Internal Audit of the Company for 2023; 7. Debriefing of the Internal Audit Work Plan of the Company for 2024. All resolutions were considered and approved. The Seventh Meeting of the Sixth Session of the Supervisory Committee April 12, 2024 By means of teleconference. 1. To consider the Resolution on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company; 2. To consider the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company. All resolutions were considered and approved. The Eighth Meeting of the Sixth Session of the Supervisory Committee April 29, 2024 By means of on-site & video meetings. Address: Small Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228 Middle Jiangdong Road, Nanjing. 1. To consider the Resolution on the First Quarterly Report of the Company for 2024; 2. To consider the Proposal on the Election of a Supervisor of the Sixth Session of the Supervisory Committee of the Company. All resolutions were considered and approved. The Ninth Meeting of the Sixth Session of the Supervisory Committee August 30, 2024 By means of on-site & video meetings. Address: Small Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228 Middle Jiangdong Road, Nanjing. 1. To consider the Resolution on the 2024 Interim Report of the Company; 2. To consider the Resolution on Adjustment to the Repurchase Price Applicable to the Restricted Share Incentive Scheme of A Shares of the Company; 3. To consider the Resolution on Interim Profit Distribution of the Company for 2024. All resolutions were considered and approved. The Tenth Meeting of the Sixth Session of the Supervisory Committee October 30, 2024 By means of on-site meeting. Address: Small Conference Room, Floor 12, Building 1, Huatai Securities Square, No. 228 Middle Jiangdong Road, Nanjing. To consider the Resolution on the Third Quarterly Report of the Company for 2024. The resolution was considered and approved. Note: Details of relevant announcements on the resolutions of the Supervisory Committee can be found on the website of the Shanghai Stock Exchange (https://www.sse.com.cn), the HKEXnews website of the HKEX (https://www.hkexnews.hk) and our Company’s website (https://www.htsc.com.cn) and China Securities Journal, Shanghai Securities News, Securities Daily as well as Securities Times. ![]() 164 VII. PERFORMANCE OF DUTIES OF DIRECTORS (I) Attendance of Directors at Board Meetings and General Meetings Attendance at Board meetings Attendance at general meetings Name of Director Whether or not he/she is an independent Director Times of attendance at Board meetings during the year Attendance in person Attendance by means of teleconference Attendance by proxy Absence Whether or not he/she failed to attend the meeting in person for two consecutive times Times of attendance at general meetings Zhang Wei No 8 8 3 – – No 3 Zhou Yi No 8 8 3 – – No – Ding Feng No 8 8 3 – – No 3 Chen Zhongyang No 8 7 3 1 – No – Ke Xiang No 8 7 3 1 – No 3 Liu Changchun No 8 5 3 3 – Yes 3 Zhang Jinxin No 8 8 3 – – No 3 Wang Jianwen Yes 8 7 3 1 – No 3 Wang Quansheng Yes 8 8 3 – – No 3 Peng Bing Yes 8 7 3 1 – No 3 Wang Bing Yes 8 5 3 3 – No 3 Lo Kin Wing Terry Yes 4 4 2 – – No – Yin Lihong (resigned) No 8 7 3 1 – No 3 Tse Yung Hoi (resigned) Yes 4 4 1 – – No 3 Number of Board meetings held within the year 8 Of which: Number of on-site meetings – Number of meetings held by teleconference 3 Number of meetings held on-site and via teleconference 5 Note: During the Reporting Period, Mr. Liu Changchun failed to attend the Board meetings in person for two consecutive times due to business engagement but appointed other Directors in writing to exercise the voting rights on his behalf. ![]() 165 (II) No Objections Raised by Directors to Relevant Matters of the Company During the Reporting Period (III) Others 1. Board of Directors and the Operation Management (1) Composition of the Board According to the relevant regulations of the Articles of Association, the Board shall be composed of 13 Directors, with the number of independent Directors accounting for at least 1/3 of the total number. On December 30, 2022, as elected at the 2022 First Extraordinary General Meeting of the Company, and according to the election by the congress of workers and staff of the Company, the Company formed the sixth session of the Board. As of the end of the Reporting Period, there were 13 members in the Board, including 3 executive Directors (Mr. Zhang Wei, Mr. Zhou Yi, Ms. Yin Lihong), 5 non-executive Directors (Mr. Ding Feng, Mr. Chen Zhongyang, Mr. Ke Xiang, Mr. Liu Changchun, Mr. Zhang Jinxin) and 5 independent non-executive Directors (Mr. Wang Jianwen, Mr. Wang Quansheng, Mr. Peng Bing, Mr. Wang Bing, Mr. Lo Kin Wing Terry). The Directors are elected or changed via the general meeting and shall formally take office from the date on which their appointments are approved by the general meeting. A Director shall serve a term of three years. Directors are eligible for re-election upon the expiration of their terms. However, the successive terms of independent non-executive Directors may not be more than 6 years. According to relevant regulations of Rule 3.13 of the Hong Kong Listing Rules, the Company has received the annual written confirmation from each independent non-executive Director with regards to his/her independence. Based on these confirmations and the relevant information available to the Board, the Company continues to confirm their independence. The Company covered liability insurance for Directors, Supervisors and senior management and other related staff held responsible according to the authorization of the 2014 Annual General Meeting, to protect them from the compensation liabilities that may arise from performing their duties and to reasonably avoid management risk and legal risk which the Directors, Supervisors and senior management may be exposed to, and to encourage them to earnestly fulfill their duties and responsibilities. ![]() 166 (2) Duties and Responsibilities of the Board The Board is the decision-making body of the Company and is accountable to the general meeting. According to the Articles of Association, the Board shall exercise the following major functions and powers: to convene general meetings and report work to general meetings; to carry out the resolutions of the general meetings; to resolve on the business & investment plans of the Company; to prepare annual financial budget plan and final accounting plan of the Company; to prepare profit distribution plan and loss remedy plan of the Company; to formulate proposals of the Company on increasing or decreasing the registered capital, issuing bonds or other securities and the listing plan; to formulate plans for material acquisition, purchase of shares of the Company, merger, division, dissolution or transformation of the Company; to determine, within the authority granted by the general meeting, such matters as external investment, acquisition and disposal of assets, asset mortgage, external guarantee, entrusted wealth management, related-party transactions, external donations, etc.; to decide on the establishment of the Company’s internal management organizations; to determine the appointment or dismissal of the chief executive officer, secretary to the Board and other senior management of the Company, and to decide the matters on their remuneration and rewards as well as penalties; to determine the appointment or dismissal of the senior management of the Company including member of Executive Committee, chief financial officer, chief compliance officer, chief risk officer and chief information officer according to the nominations by the president, and to decide the matters on their remuneration and rewards as well as penalties; to set up the basic management system of the Company; to formulate the proposals for any amendment to the Articles of Association; to manage the Company’s information disclosure; to be responsible for the strategic decision of the objectives and planning of cultural construction, and direct the Company to strengthen its cultural construction; to propose to the general meeting the appointment or replacement of the accounting firms which provide audit services for the Company; to listen to the work reports of the Executive Committee and review its work; to decide the Company’s compliance management objectives and assume the responsibility for the effectiveness of compliance management, including but not limited to: considering and approving the basic system for compliance management and the annual compliance report, evaluating the effectiveness of compliance management, urging to solve problems in compliance management, establishing the mechanism for direct communication with the chief compliance officer, guaranteeing the chief compliance officer’s assessment on the senior management, various departments and branches, subsidiaries at all levels, Compliance Department and compliance management personnel; to formulate the risk control system of the Company; to determine Directors’ remunerations and distribution plan thereof; to decide to purchase Company’s shares due to the circumstances specified in the Articles of Association; and to exercise other functions and powers authorized by laws, administrative regulations, departmental rules or the Articles of Association. ![]() 167 (3) Duties and Responsibilities of the Operation Management The Operation Management is responsible for the concrete implementation of the development strategies and policies passed by the Board as well as the daily operation and management of the Company. The Operation Management is the supreme operation management body established by the Company for implementation of the routes and policies determined by the Board, and shall exercise the following functions and powers according to the Articles of Association: to carry out Company’s operation policies determined by the Board and decide on material matters during the operation and management of the Company; to formulate and implement the financial budget plan of the Company; to formulate final accounting plan, profit distribution plan and loss remedy plan of the Company; to formulate the registered capital change plans and bonds insurance plans of the Company; to formulate plans for merger, division, change and dissolution of the Company; to formulate Company’s business plans and plans for investment, financing and disposal of assets, and report to the Board for approval according to authorization; to formulate Company’s plan for establishment of internal management bodies; to deploy and implement various works for cultural construction; to prepare and approve the employee benefits plans and promotion and demotion plans; and to exercise other functions and powers authorized by the Board. (4) Implementation by the Board of Resolutions Passed at General Meetings 1) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing Instruments of the Company was considered and approved at the Company’s first extraordinary general meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public Issuance of Perpetual Subordinated Corporate Bonds by Huatai Securities Co., Ltd. to Professional Investors (Zheng Jian Xu Ke [2023] No. 1537) of the CSRC, the Company publicly issued one tranche of perpetual subordinated corporate bonds totaling RMB2.6 billion during the Reporting Period. 2) On February 8, 2021, the Resolution on General Mandate for Domestic and Overseas Debt Financing Instruments of the Company was considered and approved at the Company’s first extraordinary general meeting of 2021. According to the resolution, after being approved by Approval for the Registration of Public Issuance of Short-term Corporate Bonds by Huatai Securities Co., Ltd. to Professional Investors (Zheng Jian Xu Ke [2023] No. 414) of the CSRC, the Company publicly issued four tranches of short-term corporate bonds totaling RMB16.8 billion during the Reporting Period. ![]() 168 3) On November 24, 2023, the Resolution on the Cancellation of the Repurchased A Shares and Reduction of Registered Capital by the Company was considered and approved at the Company’s second extraordinary general meeting of 2023, third A Share class meeting of 2023 and third H Share class meeting of 2023. According to the resolution, during the Reporting Period, the Company completed the cancellation of 45,278,495 repurchased A Shares. 4) On June 20, 2024, the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company was considered and approved at the Company’s 2023 Annual General Meeting, 2024 First A Share Class Meeting and 2024 First H Share Class Meeting. According to the resolution, during the Reporting Period, the Company completed the repurchase and cancellation of 2,082,559 restricted A Shares. 5) On June 20, 2024, the Resolution on the 2023 Profit Distribution Plan of the Company was considered and approved at the 2023 Annual General Meeting of the Company. According to the resolution, during the Reporting Period, the 2023 profit distribution of the Company was made by way of cash dividends, and the Company distributed cash dividend of RMB0.43 (tax inclusive) per share based on the Company’s total share capital of 9,029,384,840 shares prior to the implementation of the plan, with the total cash dividend of RMB3,882,635,481.20 (tax inclusive). During the Reporting Period, the profit distribution plan has been completed. 6) On June 20, 2024, the Resolution on Proposal to the General Meeting to Authorize the Board to Decide on the Interim Profit Distribution for 2024 was considered and approved at the 2023 Annual General Meeting of the Company. According to the resolution, during the Reporting Period, the Resolution on Interim Profit Distribution of the Company for 2024 was considered and approved at the twelfth meeting of the sixth session of the Board of the Company, pursuant to which the 2024 interim profit distribution of the Company was made by way of cash dividends, and the Company distributed cash dividend of RMB0.15 (tax inclusive) per share based on the Company’s total share capital of 9,027,302,281 shares prior to the implementation of the plan, with the total cash dividend of RMB1,354,095,342.15 (tax inclusive). During the Reporting Period, the profit distribution plan has been completed. ![]() 169 7) On June 20, 2024, the Resolution on the Estimated Ordinary Transactions with Related Parties of the Company for 2024 was considered and approved at the Company’s 2023 Annual General Meeting. For details of the actual performance of ordinary transactions with related parties of the Company during the Reporting Period according to the resolution, please refer to “Major Related-party Transactions” under “Major Events” in this report. 8) On June 20, 2024, the Resolution on the Estimated Investment Amount of the Company’s Proprietary Business for 2024 was considered and approved at the Company’s 2023 Annual General Meeting. According to the resolution, during the Reporting Period, related business indicators of the Company were controlled within the authorized scope of the shareholders’ general meeting. 9) On June 20, 2024, the Resolution on the Re-appointment of the Accounting Firms of the Company was considered and approved at the Company’s 2023 Annual General Meeting. According to the resolution, during the Reporting Period, the Company appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP to handle 2024 annual financial statements and internal control auditing services for the Company and its holding subsidiaries, and to issue the audit report of A shares, internal control audit report and GDR audit report; the Company also appointed Deloitte Touche Tohmatsu for auditing services of H Shares for the Company, and to issue the audit report of H Shares. (5) Training of Directors The Company attaches great importance to the ongoing training of Directors, to ensure that the Directors form an appropriate understanding of the operation of the Company and its business and they understand their duties and responsibilities as directors as required by the CSRC, the Shanghai Stock Exchange, the Hong Kong Stock Exchange, and as stipulated in the Articles of Association and other relevant laws and regulatory requirements. During the Reporting Period, the Company’s Directors attached great importance to updating professional knowledge and skills, to adapt to the needs of the development of the Company. In addition to participation in regular trainings held by regulatory organizations and self-regulatory organizations and complete required ongoing trainings, the Office of the Board also prepared the Work Newsletter of the Company regularly and sent it to the Directors to enable them to understand the latest policies and regulations and industrial trends and enhance their knowledge and understanding of the culture and operation of the Company. In addition, the Company continuously improved the internal work procedures, established the multi-level information communication mechanism, and set up the information communication platform, in order to ensure the access to information for Directors to perform their duties and constantly improve their overall performance capability. ![]() 170 During the Reporting Period, the main trainings of the Directors of the Company were as follows: Director Name Date Organizer Content Training Location Zhang Wei 2024-4-22 Organization Department of Jiangsu Provincial Committee of the CPC Online special session on “Improvement of Technological Innovation Mechanism for Enterprises” Nanjing, Jiangsu 2024-5-24 China Capital Market Institute Exchange training on FINTECH innovation in the capital market Nanjing, Jiangsu 2024-11-11 Securities Association of China Interpretation of the Measures for the Administration of Cybersecurity and Information Security in the Securities and Futures Industries Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Zhou Yi 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-10-30 Securities Association of China Interpretation of the Measures for the Administration of Cybersecurity and Information Security in the Securities and Futures Industries Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Ding Feng 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu ![]() 171 Director Name Date Organizer Content Training Location Chen Zhongyang 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Ke Xiang 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Liu Changchun 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu ![]() 172 Director Name Date Organizer Content Training Location Zhang Jinxin 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Beijing 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Beijing 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Beijing 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Beijing 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Beijing 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Beijing Wang Jianwen 2024-1-26 China Association for Public Companies Training on capacity building of independent directors Nanjing, Jiangsu 2024-4-3 China Association for Public Companies Implementation cases of new rules for independent directors and tips for their performance of duties Nanjing, Jiangsu 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Wang Quansheng 2024-1-26 China Association for Public Companies Training on capacity building of independent directors Nanjing, Jiangsu 2024-4-3 China Association for Public Companies Implementation cases of new rules for independent directors and tips for their performance of duties Nanjing, Jiangsu 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-7-31 to 2024-8-1 Shanghai Stock Exchange 2024 third phase follow-up training for independent directors of listed companies Beijing 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu ![]() 173 Director Name Date Organizer Content Training Location Peng Bing 2024-1-26 China Association for Public Companies Training on capacity building of independent directors Beijing 2024-4-3 China Association for Public Companies Implementation cases of new rules for independent directors and tips for their performance of duties Beijing 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Beijing 2024-7-31 to 2024-8-1 Shanghai Stock Exchange 2024 third phase follow-up training for independent directors of listed companies Beijing 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Beijing 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Beijing 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Beijing 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Beijing 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Beijing Wang Bing 2024-1-26 China Association for Public Companies Training on capacity building of independent directors Nanjing, Jiangsu 2024-4-3 China Association for Public Companies Implementation cases of new rules for independent directors and tips for their performance of duties Nanjing, Jiangsu 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Nanjing, Jiangsu 2024-7-31 to 2024-8-1 Shanghai Stock Exchange 2024 third phase follow-up training for independent directors of listed companies Beijing 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Nanjing, Jiangsu 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu ![]() 174 Director Name Date Organizer Content Training Location Lo Kin Wing 2024-4-15 to 2024-4-19 Shanghai Stock Exchange Training on performance of duties of Independent Directors Hong Kong 2024-6-20 Clifford Chance Memorandum on directors’ responsibilities under Hong Kong Laws and Regulations Hong Kong Memorandum in relation to related-party transactions and notifiable transactions 2024-8-29 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Hong Kong 2024-11-6 Clifford Chance Introduction to latest regulatory laws in the Hong Kong capital market Hong Kong 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Hong Kong 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Hong Kong 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Hong Kong Yin Lihong 2024-11-25 to 2024-12-3 China Association for Public Companies Special training on “Typical Cases Analysis of Violations of Laws and Regulations of Listed Companies” Nanjing, Jiangsu 2024-12-26 Huatai Securities Co., Ltd. Anti-corruption training Nanjing, Jiangsu 2024-12-30 Huatai Securities Co., Ltd. Highlights of amendments to the new Anti-Money Laundering Law Nanjing, Jiangsu Tse Yung Hoi 2024-1-26 China Association for Public Companies Training on capacity building of independent directors Hong Kong 2024-4-3 China Association for Public Companies Implementation cases of new rules for independent directors and tips for their performance of duties Hong Kong 2024-5-27 Clifford Chance HKEX’s Enforcement Bulletin Hong Kong 2. Chairman and Chief Executive Officer Chairman and Chief Executive Officer are two different positions, and according to the provisions of the Articles of Association, the chairman is the legal representative of the Company, responsible for managing the operations of the Board, ensuring that the Board acts in compliance with the best interests of the Company, ensuring the effective operation of the Board, ensuring that the Board has fulfilled its due duties and discussions about all significant and appropriate matters are held so that Directors get accurate, timely and explicit data. Chief Executive Officer manages the daily work of the Company, attends Board meetings, reports to the Board and exercises the functions and powers according to the responsibility scope of the Chief Executive Officer. ![]() 175 According to provisions of Rule C.2.1 of Corporate Governance Code, the roles of the chairman of the board and chief executive shall be separate and should not be performed by the same individual at the same time. On December 30, 2022, at the first meeting of the sixth session of the Board, the Company elected Mr. Zhang Wei as the chairman of the sixth session of the Board and continued to hire Mr. Zhou Yi as the Chief Executive Officer and the Chairman of the Executive Committee of the Company. The Board thinks that this management structure is effective and has enough checks and balances for the Company’s operation. 3. Non-executive Directors As of the end of the Reporting Period, the Company has 5 non-executive Directors and 5 independent non-executive Directors. For details of their terms of office, please refer to “Changes in shareholding structure and remuneration of current and resigned Directors, Supervisors and senior management during the Reporting Period” under “Directors, Supervisors and senior management” under “Corporate Governance” in this report. 4. Performance of Duties by Independent Non-executive Directors (1) Works regarding periodic reports In the annual report compilation process, all independent non-executive Directors of the Company have performed full duties according to the requirements of the CSRC and the provisions of the Working System for Independent Directors of the Company. On January 18, 2024, at the first meeting of the Audit Committee of the sixth session of the Board of the Company for 2024, the Audit Committee listened to the report of annual audit work arrangement of A+H+G Share and pre-audit work for 2023 of the Company made by relevant personnel from Deloitte, and made discussion and communication with relevant personnel from Deloitte. Two out of the three members in the Audit Committee are independent non-executive Directors, who put forward opinions and suggestions to the supplement and perfection of the Auditing Plan of the Company for 2023 from different perspectives in their roles as members of the Audit Committee and as independent non-executive Directors. On February 28, 2024, at the second meeting of the Audit Committee of the sixth session of the Board for 2024, the Audit Committee considered and approved the Resolution on the Auditing Plan of the Company for 2023. Two out of the three members in the Audit Committee are independent non-executive Directors, who examined the Auditing Plan of the Company for 2023 from different perspectives in their roles as members of the Audit Committee and as independent non-executive Directors. ![]() 176 On March 26, 2024, at the third meeting of the Audit Committee of the sixth session of the Board for 2024, the Audit Committee examined the Company’s Annual Financial Statement in 2023, Annual Report in 2023 and its Summary, Annual Internal Control Evaluation Report in 2023, Report on Performance of Duties by the Audit Committee of the Board in 2023, the Report on Performance of Supervisory Duties by the Annual Audit Accounting Firm for 2023 of the Audit Committee of the Board and Internal Audit Work Plan in 2024, etc., reviewed the “Key Audit Matters” and other important issues involved in the Company’s 2023 Annual Audit Report, and listened to the report on the internal audit work of the Company in 2023. Two out of the three members in the Audit Committee are independent non-executive Directors, who examined relevant resolutions and gave opinions from different perspectives in their roles as members of the Audit Committee and as independent non-executive Directors. On July 29, 2024, at the sixth meeting of the Audit Committee of the sixth session of the Board for 2024, the Audit Committee listened to the report on the review of 2024 interim financial statements of the Company’s H+G Shares and the audit plan of the Company’s 2024 A+H+G Share annual report made by relevant personnel from Deloitte, and made discussion and communication with relevant personnel from Deloitte. Two out of the three members in the Audit Committee are independent non-executive Directors, who made discussions, exchanged views and made comments and suggestions from different perspectives in their roles as members of the Audit Committee and as independent non-executive Directors. (2) Consideration on related-party transactions On March 26, 2024, the first meeting of the special meetings of independent Directors of the sixth session of the Board of the Company for 2024 and the third meeting of the audit committee of the sixth session of the Board of the Company for 2024 considered and approved the Proposal on the Estimated Ordinary Transactions with Related Parties of the Company for 2024, respectively. The relevant transactions with related parties were fair, the transaction prices of which were determined with adherence to the market pricing principle without prejudice to the interests of the Company; the relevant related-party transactions were all derived in the ordinary operation of the Company and would help carry out the businesses of the Company and bring certain income to the Company; the procedures for approval for relevant related-party transactions complied with relevant laws, regulations and normative documents as well as the Articles of Association and the Management System for Related-party Transactions of the Company. ![]() 177 (3) Other performance of duties On March 26, 2024, the first meeting of the special meetings of independent Directors of the sixth session of the Board of the Company for 2024 also considered and approved the Report on Performance of Duties of the Independent Directors of the Company for 2023 and the Report on Independence Self-examination by the Independent Directors of the Company. VIII. SPECIAL COMMITTEES UNDER THE BOARD (I) Members of the special committees of the Board Five special committees, namely, Development Strategy Committee, Compliance and Risk Management Committee, Audit Committee, Nomination Committee and Remuneration and Appraisal Committee were established under the Board, members of which as of the end of the Reporting Period were as follows: The Development Strategy Committee (a total of five members): Zhang Wei, Zhou Yi, Chen Zhongyang, Liu Changchun and Zhang Jinxin and Mr. Zhang Wei is the chairman (convener) of the Development Strategy Committee; The Compliance and Risk Management Committee (a total of three members): Zhou Yi, Ke Xiang and Wang Jianwen and Mr. Zhou Yi is the chairman (convener) of the Compliance and Risk Management Committee; The Audit Committee (a total of three members with the independent non-executive Directors accounting for more than 1/2): Wang Bing, Ding Feng and Lo Kin Wing Terry and Mr. Wang Bing is the chairman (convener) of the Audit Committee; The Nomination Committee (a total of three members with the independent non-executive Directors accounting for more than 1/2): Wang Quansheng, Yin Lihong and Peng Bing and Mr. Wang Quansheng is the chairman (convener) of the Nomination Committee; The Remuneration and Appraisal Committee (a total of three members, all are independent non-executive Directors): Wang Quansheng, Peng Bing and Wang Bing and Mr. Wang Quansheng is the chairman (convener) of the Remuneration and Appraisal Committee. ![]() 178 (II) Performance of duties by the special committees of the Board 1. Development Strategy Committee of the Board The major duties of the Development Strategy Committee of the Board include: 1. Understanding and grasping the overall situation of the Company’s operation; 2. Understanding, analyzing and grasping the current situation of international and domestic industries; 3. Understanding and grasping the relevant domestic policies; 4. Studying the short-term, medium-term and long-term development strategies of the Company or relevant issues; 5. Providing consultancy advice on the Company’s long-term development strategies, major investments, reforms and other major decisions, and promoting the deep integration of the Company’s cultural concept and the Company’s development strategies; 6. Considering and approving the special research reports on development strategies; 7. Publishing daily research reports in a regular or irregular manner; 8. Other duties assigned by the Board. During the Reporting Period, the Development Strategy Committee of the Board convened a total of two meetings, the details of which were as follows: Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The first meeting of the Development Strategy Committee of the sixth session of the Board for 2024 March 27, 2024 To consider the 2023 Work Report of the Senior Management of the Company. The Development Strategy Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. The second meeting of the Development Strategy Committee of the sixth session of the Board for 2024 June 3, 2024 To consider the Resolution on the 2023 Report on the Implementation of Construction of Corporate Culture. The Development Strategy Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. Attendance of members of the Development Strategy Committee at the meetings held during the Reporting Period was as follows: Name Attendance in person/ Number of meetings requiring attendance Zhang Wei 2/2 Zhou Yi 2/2 Chen Zhongyang 2/2 Liu Changchun 2/2 Zhang Jinxin 2/2 ![]() 179 2. Compliance and Risk Management Committee of the Board The main duties of the Compliance and Risk Management Committee of the Board include: 1. Reviewing and making recommendations on the overall targets and fundamental policies of compliance management and risk management; 2. Reviewing and making recommendations on the setup of compliance management and risk management bodies and their duties; 3. Evaluating and making recommendations on the risks of major decisions which require the Board’s review as well as the solutions to these risks; 4. Reviewing and making recommendations on the compliance reports and risk assessment reports that require the Board’s review; 5. Other duties prescribed in the Articles of Association. During the Reporting Period, the Compliance and Risk Management Committee of the Board convened three meetings, the details of which were as follows: Meeting name Convening date Meeting content Important comments and suggestions Other conditions on execution of duty The first meeting of the Compliance and Risk Management Committee of the sixth session of the Board for 2024 March 27, 2024 1. To consider and approve the Resolution on the Annual Compliance Report of the Company in 2023; 2. To consider and approve the Resolution on the Annual Risk Management Report of the Company in 2023; 3. To consider and approve the Resolution on the 2023 Annual Internal Control Evaluation Report of the Company; 4. To consider and approve the Resolution on Amendments to the Administrative Measures for System Construction of Huatai Securities Co., Ltd. The Compliance and Risk Management Committee considered and approved the resolutions at the meeting. The meeting was convened by way of teleconference. The second meeting of the Compliance and Risk Management Committee of the sixth session of the Board for 2024 August 29, 2024 To consider and approve the Resolution on the 2024 Interim Compliance Report of the Company. The Compliance and Risk Management Committee considered and approved the resolutions at the meeting. The meeting was convened by way of teleconference. The third meeting of the Compliance and Risk Management Committee of the sixth session of the Board for 2024 October 29, 2024 To consider and approve the Resolution on Amendments to the Basic System for Anti- Money Laundering and Anti-Terrorism Financing of Huatai Securities Co., Ltd. The Compliance and Risk Management Committee considered and approved the resolutions at the meeting. The meeting was convened by way of teleconference. ![]() 180 Attendance of members of the Compliance and Risk Management Committee at the meetings held during the Reporting Period was as follows: Name Attendance in person/ Number of meetings requiring attendance Zhou Yi 3/3 Ke Xiang 3/3 Wang Jianwen 3/3 3. Audit Committee of the Board The main duties of the Audit Committee of the Board include: 1. Supervising and guiding the audit work. It shall manage and guide the internal audit work planning and audit team construction, regularly listen to and review the comprehensive report of audit work, annual audit plan and important audit reports, make judgements on the truthfulness, accuracy and completeness of the audited financial report, and submit them to the Board for reviewing. It shall supervise the Company’s financial statement and the completeness of the Company’s annual report and account, interim report and quarterly report and review statements as well as major opinions on financial declaration in reports. The Committee shall pay special attention to the following matters: ① Changes in accounting policies and practices; ② Matters concerning significant judgment; ③ Significant adjustments due to the audit; ④ Assumptions of on-going operations of the Company and its qualified opinions; ⑤ Compliance with the accounting standards; and ⑥ Compliance with the listing rules or relevant laws and regulations of the listing place where the financial reporting shall be made; 2. Proposing the engagement or changing of external audit institutions and supervising the professional conduct of external audit institutions, so as to ensure the coordination of internal and external auditors. Moreover, it shall also ensure that the internal audit institution is given enough resources for operation and appropriate status within the Company and check and supervise its validity; 3. Considering and putting forward suggestions for the appointment, reappointment, remuneration, appointment terms and any other issues about the resignation or dismissal of external auditors. It shall hold the position as the main representative between the Company and the external auditor and supervise their relationship; 4. Discussing with the external auditors about the nature, scope and relevant responsibility of audit and frequently check if the audit procedure is valid and whether the external auditor is objective and independent before carrying out the audit work; 5. Checking the Explanation Letter on Audit offered by external auditors to the management and any major doubts put forward by the auditors to the management about the accounting record, financial account or monitoring system as well as the response of the management and ensure that the Board can timely reply to issues put forward in the Explanation Letter on Audit offered by external auditors to the management; 6. Checking and monitoring the Company’s financial supervision, risk management and internal monitoring system and check the financial and accounting policies and practices of the Company and its subsidiaries; 7. Discussing the risk management and internal supervision system with the management so as to ensure that the management has performed its duty and established a valid internal supervision system; studying the important investigation results and responses of the management related to risk management and internal supervision system actively or as assigned by the ![]() 181 Board of Directors; 8. Reporting the above issues to the Board; 9. Checking the Company’s following arrangement: Employees of the Company may secretly raise concerns on irregular conducts about financial reporting, internal monitoring, or other aspects. The Audit Committee shall ensure that there is appropriate arrangement for the Company to make fair and independent investigation and take appropriate actions on such issues; 10. Studying other projects defined by the Board; 11. Other responsibilities according to the Articles of Association or the Listing rules or laws and regulations of the place where the Company is listed. During the Reporting Period, the Audit Committee of the Board convened eight meetings in total, the details of which were as follows: Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The first meeting of the Audit Committee of the sixth session of the Board for 2024 January 18, 2024 To listen to the report of annual audit work arrangement of A+H+G Share and pre- audit work for 2023 of the Company made by relevant personnel from Deloitte, and to make discussion and communication with relevant personnel from Deloitte. The Audit Committee listened to the report, and also suggested that the audit work should focus on the valuation under the changing circumstances of different capital markets. The meeting was convened by way of on-site & video meetings. The second meeting of the Audit Committee of the sixth session of the Board for 2024 February 28, 2024 To consider and approve the Resolution on the Auditing Plan of the Company for 2023. The Audit Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. ![]() 182 Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The third meeting of the Audit Committee of the sixth session of the Board for 2024 March 26, 2024 1. To consider the Final Financial Report of the Company for 2023; 2. To consider the Financial Budget Report of the Company for 2024; 3. To consider the Proposal on the Profit Distribution of the Company for 2023; 4. To consider the Resolution on the Annual Financial Statements of the Company for 2023; 5. To consider the Proposal on the Annual Report of the Company for 2023 and its Summary; 6. To consider the Resolution on the Internal Control Assessment Report of the Company for 2023; 7. To consider the Proposal on the Estimated Ordinary Transactions with Related Parties of the Company for 2024; 8. To consider the Proposal on the Re-appointment of the Accounting Firms of the Company; 9. To consider the Report on Performance of Duties of Audit Committee under the Board of the Company for 2023; 10. To consider the Evaluation Report on Performance of Duties by the Annual Audit Accounting Firm for 2023 of the Company; 11. To consider the Report on Performance of Supervisory Duties by the Annual Audit Accounting Firm for 2023 of the Audit Committee of the Board of the Company; The Audit Committee considered and approved the resolutions at the meeting, and also suggested to strengthen the digitalization of the audit work. The meeting was convened by way of on-site & video meetings. Members of the Audit Committee considered and listened to the report on the operations and financial situation of the Company for 2023 and communicated with senior management of the Company and staff from Deloitte. ![]() 183 Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty 12. To consider the Special Audit Report on Related Party Transactions of the Company for 2023; 13. To consider the Special Audit Report on the Use of Proceeds, Provision of Guarantees and Related- party Transactions and Other Major Events of the Company in 2023; 14. To consider the Report on Internal Audit of Anti-money Laundering of the Company for 2023; 15. To consider the Work Plan for the Internal Audit of the Company for 2024; 16. To review the Important Matters Involved in the “Key Audit Matters” as Set Out in the Annual Audit Report of the Company for 2023; 17. Debriefing the Report on Internal Audit of the Company for 2023. The fourth meeting of the Audit Committee of the sixth session of the Board for 2024 April 26, 2024 1. To consider the Resolution on the Financial Statements for January to March 2024 of the Company; 2. To consider the Resolution on Proposal to the General Meeting to Authorize the Board to Decide on the Interim Profit Distribution for 2024. The Audit Committee considered and approved the resolutions at the meeting. The meeting was convened by way of on-site & video meetings. The fifth meeting of the Audit Committee of the sixth session of the Board for 2024 June 19, 2024 To consider and approve the Resolution on the Formulation of the Internal Audit Management System of Huatai Securities Co., Ltd. The Audit Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. ![]() 184 Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The sixth meeting of the Audit Committee of the sixth session of the Board for 2024 July 29, 2024 To listen to the report on the review of 2024 interim financial statements of the Company’s H+G Share and the Company’s 2024 A+H+G Share annual audit plan made by relevant personnel from Deloitte, and to discuss and communicate with relevant personnel from Deloitte. The Audit Committee listened to the report, and also suggested to pay attention to the internal control of new business changes during the Reporting Period. Staff from Deloitte advised that precautionary measures had been put in place. The meeting was convened by way of on-site & video meetings. ![]() 185 Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The seventh meeting of the Audit Committee of the sixth session of the Board for 2024 August 28, 2024 1. To consider and approve the Resolution on the Financial Statement of the Company in the First Half of 2024; 2. To consider and approve the Resolution on Interim Report of the Company in 2024; 3. To consider and approve the Resolution on Interim Profit Distribution of the Company for 2024; 4. To consider and approve the Special Audit Report on the Use of Proceeds, Provision of Guarantees and Related- party Transactions and Other Major Events of the Company in the First Half of 2024. The Audit Committee considered and approved the resolutions at the meeting. The meeting was convened by way of on-site & video meetings. Members of the Audit Committee considered and listened to the report on the operations and financial situation of the Company for the first half- year of 2024 and communicated with senior management of the Company and staff from Deloitte. The eighth meeting of the Audit Committee of the sixth session of the Board for 2024 October 29, 2024 To consider and approve the Resolution on the Financial Statements for January to September of 2024 of the Company. The Audit Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. Attendance of the members of the Audit Committee at the meetings held during the Reporting Period was as follows: Name Attendance in person/ Number of meetings requiring attendance Wang Bing 8/8 Ding Feng 8/8 Lo Kin Wing Terry 3/3 Tse Yung Hoi 5/5 Note: On June 30, 2024, the eleventh meeting of the sixth session of the Board considered and approved the Resolution on the Adjustment to the Composition Plan of Certain Special Committees of the Sixth Session of the Board of the Company, where the members of the Audit Committee were adjusted to be Mr. Wang Bing, Mr. Ding Feng and Mr. Lo Kin Wing Terry, and Mr. Wang Bing is the chairman (convener) of the Audit Committee. ![]() 186 4. Nomination Committee of the Board The main duties of the Nomination Committee of the Board include: 1. Reviewing the structure, headcount and composition (including skills, knowledge and experience) of the Board at least once each year and making recommendations regarding any proposed changes in the Board in line with the Company’s strategies; 2. Considering and making suggestions on the criteria and procedures for the selection of Directors and senior management members; 3. Searching for qualified candidates for Director and senior management, and selecting from the list of candidates nominated by Directors or making recommendations to the Board; 4. Reviewing and making suggestions on the qualification requirements for Directors and senior management; 5. Assessing the independence of independent non-executive Directors; 6. Making recommendations to the Board on the appointment or reappointment of Directors and succession planning for Directors (in particular the Chairman and the Chief Executive Officer); and 7. Other responsibilities stipulated in the Articles of Association or as required by the Board. The procedures to nominate and criteria to select and recommend candidates for directorship and senior management are: in accordance with the provisions of the Company Law, the Securities Law, the Rules for the Independent Directors of Listed Companies ( 《上市公司獨立董事規則》 ) of the CSRC, Measures for the Supervision and Administration of Directors, Supervisors, Senior Management Officers and Practitioners of Securities Fund Operating Institutions ( 《證券基金 經營機構董事、監事、高級管理人員及從業人員監督管理辦法》 ), the Hong Kong Listing Rules of the Hong Kong Stock Exchange and other relevant laws, regulations and the Articles of Association, the Nomination Committee under the Board shall base on the Company’s actual situation, study the criteria for election of the Company’s senior management officers including directors, the chief executive officer and others, the procedures for selection and term of the office and submit such resolution once made to the Board for approval. It then follows and implements the resolution. Selection procedures are: 1. the Nomination Committee shall actively exchange opinions with the relevant departments of the Company, study the Company’s requirements for the senior management officers including directors, the chief executive officer and others and shall prepare materials in written form; 2. the Nomination Committee may search for the candidates for the senior management officers including directors, the chief executive officer and others both from and within the Company and a controlling (shareholding) enterprise, and out of the Company; 3. to collect data of the natural condition of the preliminarily screened candidate and his/her morality, ability, diligence and performance, and prepare written information; 4. to obtain the consent of the nominee regarding the nomination or else the nominee cannot act as a candidate for a senior management officer including a director, the chief executive officer and others; 5. to convene a meeting of the Nomination Committee and to examine the qualifications of the preliminarily selected candidates based on the appointment criteria for senior management officers including directors, the chief executive officer and others; 6. one to two months prior to the election of new directors and appointment of new senior management ![]() 187 officers including the chief executive officer and others, to submit to the Board the suggestion on the candidates for directors and the candidates for newly hired senior management officers including the chief executive officer and others and the relevant materials; 7. other follow-up work is to be carried out pursuant to the decision and feedback of the Board. During the Reporting Period, the Nomination Committee of the Board convened two meetings in total, the details of which were as follows: Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The first meeting of the Nomination Committee of the sixth session of the Board for 2024 April 10, 2024 To consider and approve the Resolution on the Election of an Independent Non- executive Director of the Sixth Session of the Board of the Company. The Nomination Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. The second meeting of the Nomination Committee of the sixth session of the Board for 2024 December 31, 2024 To consider and approve the Report on Performance of Duties of Nomination Committee under the Board of the Company for 2024. The Nomination Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. Attendance of the members of the Nomination Committee at the meetings held during the Reporting Period: Name Attendance in person/ Number of meetings requiring attendance Wang Quansheng 2/2 Peng Bing 2/2 Yin Lihong 2/2 ![]() 188 5. Remuneration and Appraisal Committee of the Board The main duties of the Remuneration and Appraisal Committee of the Board include: 1. Reviewing and providing opinions on the appraisal and remuneration management system for Directors and senior management, and making recommendations to the Board on the Company’s overall policy and structure for the remuneration of the Directors and senior management, and on the establishment of a formal and transparent procedure to develop remuneration policy; 2. Reviewing and approving the management’s remuneration proposals with reference to the Board’s corporate goals and objectives; 3. Conducting assessment on and making recommendations to the Directors and senior management: making recommendations on the remuneration packages, including benefits in kind, pensions and compensation payments (including any compensation payable for loss or termination of office or appointment), for certain executive Directors and senior management, and making recommendations to the Board on the remuneration of non-executive Directors; 4. Considering salaries paid by comparable companies, time commitment and responsibilities and engagement condition elsewhere in the Group; 5. Reviewing and approving compensation payable to executive Directors and senior management for any loss or termination of office or appointment to ensure that it is consistent with the relevant contractual terms. In case of inconsistency with the relevant contractual terms, the compensation shall be fair and not be excessive; 6. Reviewing and approving compensation arrangements relating to dismissal or removal of Directors for misconduct to ensure that they are consistent with the contractual terms. In case of inconsistency with the relevant contractual terms, the compensation shall be reasonable and appropriate; and 7. Ensuring that no Director or any of his/her associates is involved in determining their own remuneration; 8. Other responsibilities stipulated in the Articles of Association. ![]() 189 During the Reporting Period, the Remuneration and Appraisal Committee of the Board convened four meetings, the details of which were as follows: Meeting name Convening date Meeting contents Important comments and suggestions Other conditions on execution of duty The first meeting of the Remuneration and Appraisal Committee of the sixth session of the Board for 2024 March 27, 2024 1. To consider and approve the Report on Performance Assessment and Remuneration of the Directors of the Company in 2023; 2. To consider and approve the Report on Execution of Duty, Performance Assessment and Remuneration of the Senior Management of the Company in 2023. The Remuneration and Appraisal Committee considered and approved the resolutions at the meeting. The meeting was convened by way of teleconference. The second meeting of the Remuneration and Appraisal Committee of the sixth session of the Board for 2024 April 10, 2024 To consider and approve the Resolution on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company. The Remuneration and Appraisal Committee considered and approved the resolution at the meeting. The meeting was convened by way of on-site & video meetings. The third meeting of the Remuneration and Appraisal Committee of the sixth session of the Board for 2024 August 29, 2024 To consider and approve the Resolution in Relation to the Performance Plan and Target of the Company’s Senior Management for 2024. The Remuneration and Appraisal Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. The fourth meeting of the Remuneration and Appraisal Committee of the sixth session of the Board for 2024 December 19, 2024 To consider and approve the Resolution on Amendments to the Remuneration Management System of Huatai Securities Co., Ltd. The Remuneration and Appraisal Committee considered and approved the resolution at the meeting. The meeting was convened by way of teleconference. ![]() 190 Attendance of the members of the Remuneration and Appraisal Committee at the meetings held during the Reporting Period: Name Attendance in person/ Number of meetings requiring attendance Wang Quansheng 4/4 Peng Bing 4/4 Wang Bing 4/4 IX. PERFORMANCE OF DUTIES OF SUPERVISORS The Supervisory Committee is the Company’s supervisory body and is accountable to the Shareholders’ general meeting. The Supervisory Committee is responsible for supervising the financial activities and internal control of the Company, and supervising the legality and compliance of the performance of duties by the Board of Directors, operating management and its members in accordance with the Company Law and the Articles of Association. In 2024, the Supervisory Committee of the Company complied with the relevant provisions of the Company Law, the Securities Law, the Rules of Procedures for the Supervisory Committee under the Articles of Association and other relevant regulations, to conscientiously perform and independently exercise the supervisory powers and duties of the Supervisory Committee. In the spirit of being responsible to all shareholders, the Supervisory Committee effectively supervised the Company’s operating activities, financial position, major decisions of the Board of Directors and the legality and compliance of the performance of duties by operating management. It actively protects the interests of the Company and the shareholders, and escorts the healthy development of the Company. (I) Performance of duties by Supervisors During the Reporting Period, the Supervisory Committee of the Company held 5 meetings in total. For relevant information, please refer to “Meetings of the Supervisory Committee Convened During the Reporting Period” in this section. ![]() 191 During the Reporting Period, all the Supervisors of the Company attended the meetings of the Supervisory Committee, the Board of Directors, and the Shareholders’ general meetings, the details of which were as follows: Attendance at meetings of the Supervisory Committee Name of Supervisor Position Number of meetings of Supervisory Committee requiring attendance Attendance in person Attendance in the way of teleconference Attendance by proxy Absence Whether or not he/she failed to attend the meeting in person for two successive times Attendance at Board meeting Attendance at the general meeting Gu Chengzhong Chairman of the Supervisory Committee, employee representative Supervisor 5 5 1 – – No 5 3 Lv Wei Supervisor (appoonted on june 20, 2024) 2 1 – 1 – No 1 – Yu Lanying Supervisor 5 5 1 – – No 4 3 Zhang Xiaohong Supervisor 5 4 1 1 – No 3 – Zhou Hongrong Supervisor 5 5 1 – – No 4 – Wang Ying Employee representative Supervisor 5 5 1 – – No 5 3 Wang Juan Employee representative Supervisor 5 4 1 1 – No 4 3 Li Chongqi Supervisor (resigned) 3 2 1 1 – No 1 – Number of meetings of Supervisory Committee convened during the year 5 Of which: number of meetings held on-site 1 number of meetings in the way of teleconference 1 number of meetings held on-site and in the way of teleconference 3 ![]() 192 (II) Independent opinions of the Supervisory Committee During the Reporting Period, the Supervisory Committee convened 5 meetings in total throughout the year, at which 14 proposals and reports were considered or heard. The Supervisors sat in the Board meetings and general meetings of the Company, monitored the decision-making process on material matters on a real-time basis, kept abreast of the senior management’s implementation of the decisions made by the Board through carefully reading the reports of the Company, including Work Newsletter (monthly) and Brief Report on Audit Work (quarterly) and conducting onsite investigations and surveys on the Company’s branches. On this basis, the Supervisory Committee gave independent opinions on the Company’s relevant matters as follows: 1. Legal operation During the Reporting Period, the Company was under legal operation in compliance with relevant laws and regulations such as the Company Law, the Securities Law and the Articles of Association as well as the requirements of the Company’s systems. Major operational decisions of the Company were reasonable, and the decision-making procedures were lawful. The Company established a relatively sound internal management system and internal control system, under which various regulations were effectively implemented. During the Reporting Period, the Supervisory Committee found no conduct violating laws, regulations, the Articles of Association or damaging the interests of the Company and its shareholders made by Directors and senior management of the Company when performing their duties, and there were no material risks in the Company. 2. Financial conditions of the Company During the Reporting Period, the Supervisory Committee of the Company regularly convened meetings of the Supervisory Committee to review quarterly reports, interim reports, annual financial reports, annual evaluation reports on internal control and other documents of the Company, and checked the business and financial conditions of the Company. The Supervisory Committee believed that the financial report of the Company for 2024 had been audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP which had issued a standard audit report without qualified opinions. The Company’s financial statements were prepared in compliance with the relevant requirements of the ASBE, which truly reflected the financial conditions and operational achievements of the Company. Regular reports were prepared and reviewed in compliance with relevant laws, regulations and various requirements of the CSRC, the contents of which were true, accurate and complete to reflect the actual conditions of the Company. 3. Implementation of the System regarding Insider Registration and Management and Confidentiality During the Reporting Period, the Company amended the System regarding Insider Registration and Management and Confidentiality of Huatai Securities Co., Ltd. in accordance with relevant laws and regulations and carried out the registration and management of insider information in an orderly manner pursuant to the policies. There were no incidents found in the Company in violation of insider registration and management and confidentiality obligation. ![]() 193 4. Related-party transactions During the Reporting Period, the related-party transactions of the Company were fair and reasonable, and no circumstances impairing interests of the Company and shareholders have been found. When the Board of Directors of the Company considered related matters, affiliated directors abstained from voting, and the voting procedures were legal and valid. 5. Use of funds raised During the Reporting Period, the Company successfully issued 5 tranches of short- term corporate bonds with a total scale of RMB16.8 billion; issued one tranch of perpetual subordinated bonds with a total scale of RMB2.6 billion; issued overseas medium-term notes with a total scale of USD593 million. During the Reporting Period, the Company issued 2,891 income certificates with a total scale of RMB32.061 billion. As of the end of the Reporting Period, 372 income certificates continued to exist with a total scale of RMB20.241 billion. The funds raised from the corporate bonds have been fully utilised, which is conformed to the purpose, utilisation plan and other agreements as undertaken in the prospectus. 6. Implementation of share incentive scheme During the Reporting Period, the Supervisory Committee considered the Resolution on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company and issued its written review opinions. The conditions for release from selling restriction of the second lock-up period under the Restricted Share Incentive Scheme of A Shares of the Company have been fulfilled, which was in compliance with the requirements under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. without compromising the interests of the Company and the shareholders. During the Reporting Period, the Supervisory Committee considered the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares of the Company and issued its written review opinions. The repurchase and cancellation of part of the restricted A Shares of the Company and relevant consideration procedures were in compliance with the requirements under the laws, regulations and normative documents such as the Administrative Measures on Share Incentives of Listed Companies as well as the Articles of Association and the Restricted Share Incentive Scheme of A Shares of the Company without compromising the interests of the Company and the shareholders. ![]() 194 During the Reporting Period, the Supervisory Committee considered the Resolution on Adjustment to the Repurchase Price Applicable to the Restricted Share Incentive Scheme of A Shares of the Company and issued its written review opinions. The adjustment to the repurchase price applicable to the restricted A Shares of the Company, which was made by the Board of the Company in accordance with the authorization of the general meeting, was in compliance with requirements under the laws, regulations and normative documents such as the Administrative Measures on Share Incentives of Listed Companies ( 《上市公司股 權激勵管理辦法》 ) and the Incentive Scheme; and the procedures of consideration were in compliance with laws and regulations without any prejudice to the interests of the Company and the Shareholders. 7. Review of relevant reports (1) Written reviews and opinions on the annual report of the Company for 2024 prepared by the Board of Directors were as follows: The annual report of the Company for 2024 was prepared and reviewed in compliance with the relevant laws, regulations and requirements of regulatory authorities, the contents of which were true, accurate and complete and could reflect the actual conditions of the Company. (2) The Supervisory Committee of the Company reviewed the Assessment Report on Internal Control of the Company for 2024, and had no objections to the contents therein. X. RISKS FOUND BY THE SUPERVISORY COMMITTEE IN THE COMPANY The Supervisory Committee had no objections towards the matters under supervision during the Reporting Period. XI. ESTABLISHMENT AND IMPLEMENTATION OF INTERNAL CONTROL SYSTEM DURING THE REPORTING PERIOD (I) Statement of the Board In accordance with the requirements of the corporate internal control standard system, it is the responsibility of the Board of the Company to establish, improve and effectively implement internal control, assess its effectiveness and truthfully disclose the assessment report on internal control. The Supervisory Committee oversees the establishment and implementation of internal control by the Board. The senior management is responsible for organizing and steering the day-to-day operation of corporate internal control. The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior management of the Company undertake that the internal control assessment report contains no false record, misleading statement or material omission, and assume individual and joint legal liabilities to the authenticity, accuracy and integrity of this report. ![]() 195 The objective of internal control of the Company is to reasonably ensure the legality and compliance of the operation and management, the security of the assets, and the truthfulness and completeness of the financial report and its relevant information, to improve operating efficiency and effectiveness, and to promote the accomplishment of the development strategy. Due to the inherent limitations of internal control, only reasonable assurance can be provided for the achievement of the above objectives. In addition, internal control may become inappropriate or the level of compliance with control policies and procedures may become lower due to the changes of situation, so it subjects to certain risks to speculate the effectiveness of internal control in the future based on the results of internal control evaluation. (II) Structure of the internal control system The Board of Directors has set up special committees such as the Compliance and Risk Management Committee, the Audit Committee and the Development Strategy Committee to comprehensively monitor the effective implementation of internal control and self-evaluation of internal control. The Company established the leading group for the construction and continuous optimization of internal control to comprehensively lead internal control standardized project construction and continuously promote the improvement of the internal control system. The Company designates Risk Management Department, Planning and Finance Department, Inspection Department, Legal Compliance Department, etc. as internal control management departments and all departments as internal control implementation departments to fully cooperate with the improvement and self-assessment of the internal control system, actively rectify defects in internal control and give feedback on rectification results as required. The Inspection Department shall be responsible for conducting internal control evaluation independently and implementing internal audit and assessment independently on the Company’s internal control measures annually. ![]() 196 (III) Construction and improvement of the internal control system The Company strictly follows the Company Law, the Securities Law, Regulation on Supervision and Administration of Securities Firms ( 《證券公司監督管理條例》 ), Guidelines for Internal Control of Securities Firms ( 《證券公司內部控制指引》 ), Basic Internal Control Norms for Enterprises ( 《企業內部控制基本規範》 ), the implementation guidelines for enterprise internal control and other regulatory requirements, and continually improves the corporate governance structure, compliance risk control system and internal control management system. The Company practices internal control management methods, constantly enhances the ability to restrict itself and effectively prevents and resolves various risks so as to ensure the continuous, stable and rapid development of various businesses thereof. The Company makes clear the internal control organizational structure and division of responsibilities, and the leading group for internal control construction and continuous optimization supervises and promotes the internal control construction of the Company. The Company’s whole businesses, departments, branches and all staff are involved in internal control, throughout each link from decision-making, implementation, supervision to feedback. Based on regulatory requirements and business development, the Company continued to improve various internal control management systems and constantly established and improved internal control systems appropriate to the scale and complexity of the business of the Company. Starting from prudent operation and identification, prevention and resolution of risks, the Company established and continued to improve a multi-level internal control evaluation mechanism comprising regular and irregular self-evaluation of the effectiveness of internal control, evaluation of the effectiveness of internal control by internal audit department and independent evaluation by external auditors, so as to continuously strengthen the overall internal control. (IV) Operation of the internal control system With a focus on the regulatory requirements, development strategies and operation objectives, the Company continued to deepen the operation of the internal control system. The Company regularly or irregularly carried out a review and update of the system to ensure the comprehensiveness, prudence, effectiveness and applicability of the system and standards, so as to avoid blank or loopholes. The Company strengthened its risk review, assessment, examination, management and control in material institutions, major businesses and key fields to guarantee the risks are measurable, controllable and bearable. It deepened the establishment of the business continuity management mechanism and improved the systems of emergency management; and actively conducted publicity and trainings to strengthen the internal control culture publicity. The Company continued to deepen the analysis and rectification tracking of control deficiencies and improved the effectiveness of the design and implementation of control measures by conducting regular and irregular self-assessments of the effectiveness of internal controls and evaluation of the effectiveness of internal controls. ![]() 197 (V) Basis for the assessment of internal control The Company organizes to conduct internal control assessment according to the corporate internal control standard system and the Guidelines for Internal Control of Securities Firms ( 《證券公司內部控制指引》 ) and Rules for the Preparation and Reporting of Information Disclosure by Listed Issuers of Securities No. 21 – General Provisions on the Annual Internal Control Assessment Report ( 《公開發行證券的公司 信息披露編報規則第 21 號 － 年度內部控制評價報告的一般規定》 ) issued by the CSRC and other relevant laws, regulations and regulatory rules. (VI) Internal control defect and its identification According to the identification requirements for major defects, important defects and general defects as stipulated by the internal control system of enterprises, the Board of the Company, in consideration of such factors as the scale of the Company, industrial characteristics, risk appetite and risk tolerance, distinguished financial report internal control from non-financial report internal control and determined the internal control defects applicable to the Company and its specific identification standards, which were consistent with those of the previous years. A material defect refers to a combination of one or more controlling defects that could cause the enterprise to deviate significantly from its control objectives; a significant defect refers to a combination of one or more controlling defects that is less severe and has less economic consequences than a material defect, but may still cause the enterprise to deviate from its control objectives; general defects refer to defects other than material defects and significant defects. (VII) The Company ’ s internal control effectiveness assessment According to the Basic Internal Control Norms for Enterprises ( 《企業內部控制基本規 範》 ) and its provisions in its supporting guidelines and other regulatory requirements on internal control as well as the Company’s internal control system and assessment methods, we have assessed the Company’s internal control effectiveness on December 31, 2024 (base date of internal control assessment report) based on the daily supervision and specialized supervision of internal control, and have issued the Annual Internal Control Evaluation Report for 2024. The Company considered its risk management and internal control systems effective and adequate. The main businesses and matters included in the evaluation scope of the Company’s internal control include: internal environment, risk assessment, control activities, information and communication, internal supervision, as well as incompatible position separation control, authorization and approval control, accounting system control, property protection control, budget control, operation analysis control and performance appraisal control involved in the control activities. High-risk areas we focused on include: brokerage business, financial product sales and fund investment advisory business, margin financing and securities lending and stock pledge businesses, equity trading business, FICC trading business, OTC derivatives trading business, investment banking business, funds custody and service business, research business, financial management, information technology, compliance and legal affairs, related-party transactions, internal control of subsidiaries and other key fields, as well as the liquidity risk, market risk, credit risk, operational risk, reputation risk, information technology risk, compliance risk, legal risk and integrity risk that have significant impact on the Company’s operation and management. ![]() 198 According to the identification results of major defects in financial report internal control, on the base date of internal control assessment report, the Company does not have major defects in financial report internal control. The Board of Directors thinks that the Company has maintained effective financial report internal control in all major aspects according to the enterprise internal control standardized system and requirements in relevant regulations. According to the identification results of major defects in non-financial report internal control, on the base date of internal control assessment report, the Company is not aware of major defects in non-financial report internal control. (VIII) Work plan for internal control in 2025 In 2025, the Company will continuously promote internal control optimize work. The key contents include referring to and implementing new regulatory and industrial requirements and improving the execution effectiveness of management and control measures with focus on normalizing and deepening special evaluation and examination as well as enhancing the efficiency of management and control tools; improving the process control and the ability to identify risks, improving monitoring indicators system and enhancing the insurmountability of management and control; and deepening the establishment of internal control and management culture and intensifying training and publicity. XII. MANAGEMENT AND CONTROL OF SUBSIDIARIES DURING THE REPORTING PERIOD Adhering to the philosophy of collective, specialized and platform-based management, the Company incorporated its onshore and offshore subsidiaries into the comprehensive risk management system. During the Reporting Period, the Company continued to enhance the refined management and control ability, continuously integrated risk data and information of the Group, further enhanced the unified risk measuring, monitoring and analysis capability of the Group and normally urged subsidiaries to implement the unified rules of the Group to ensure that the risks of subsidiaries are measurable, controllable and bearable under the overall risk preference of the Group. XIII. INFORMATION ABOUT THE INTERNAL CONTROL AUDITING REPORT When disclosing the annual report for 2024, the Company will also disclose the 2024 Annual Internal Control Evaluation Report of Huatai Securities Co., Ltd. and the Internal Control Audit Report of Huatai Securities Co., Ltd. at the same time, which will be published on the website of the Shanghai Stock Exchange (www.sse.com.cn), the HKEXnews website of the HKEX (www.hkexnews.hk) and the Company’s official website (www.htsc.com.cn) on March 29, 2025. Whether to disclose the internal control audit report: Yes Type of opinion on the audit report on internal control: Standard unqualified opinion ![]() 199 XIV. RECTIFICATION OF PROBLEMS DISCOVERED IN SPECIAL SELF-INSPECTION ACTIONS ON LISTED COMPANIES GOVERNANCE During the Reporting Period, the Company was not involved in relevant self-inspection and rectification. XV. BUILDING OF THE COMPLIANCE MANAGEMENT SYSTEM OF THE COMPANY AND THE INSPECTION AND AUDIT FINISHED BY THE COMPLIANCE AND INSPECTING DEPARTMENT DURING THE REPORTING PERIOD The Company always places emphasis on the corporate culture of operation in compliance with laws and regulations, and carries out strict management and prudent and standard operation. During the Reporting Period, in accordance with the relevant laws and regulations and the regulatory requirements, the Company further improved the compliance management system, perfected the organizational structure for compliance management, and continued to deepen the compliance management of the Company to keep continuous and standardized development of the Company’s various businesses. (I) Organizational Structure for Compliance Management Since its establishment, the Company has been adjusting and improving the organizational structure for compliance management and the relevant systems based on the changes of the market environment and regulatory requirements and the development needs of business. According to the Measures for the Compliance Management of Securities Companies and Securities Investment Fund Management Companies ( 《證券公司和證券投資基金管理公司合規管理辦法》 ) (hereinafter referred to as the “Measures”) issued by the CSRC, the Company further clarified the compliance duties of the Board of Directors, Supervisory Committee, senior management, chief compliance officer, and responsible persons of all departments, all branches and subsidiaries at all levels (hereinafter referred to collectively as “all subordinate units”) in the Articles of Association and the basic compliance management system. The current compliance organizational system comprehensively reflects the basic requirements of the Measures for “full compliance” and “starting compliance management from the senior management”, and a resultant force situation of sound compliance management organizational structure, clear positioning of responsibilities at all levels and full compliance is basically created. ![]() 200 The Board of Directors is the supreme decision-making body for compliance management of the Company, which bears ultimate responsibility for the effectiveness of compliance management, decides on the compliance management objectives and is responsible for the effectiveness of compliance management of the Company; the Compliance and Risk Management Committee under the Board of Directors is responsible for overseeing the overall risk management of the Company and controlling the risks within a reasonable range to ensure that the internal management system, business rules, significant decisions and main business activities of the Company are in compliance with laws and regulations and the risks are controllable and bearable; the Supervisory Committee is responsible for supervising the compliance management and the performance of compliance management duties by Directors and senior management; the senior management assumes the major responsibilities for compliance management, implements the compliance management objectives of the Company and is responsible for the whole company’s compliance management; responsible persons of all subordinate units are responsible for their units’ operations in accordance with laws and regulations; all the staff of the Company are responsible for the compliance of the operational matters and professional conducts within the range of their operational activities. The chief compliance officer is in charge of the compliance of the Company, conducts audit, inspection and supervision on the compliance of the management and professional conducts of the Company and its staff, and helps the operation management effectively identify and manage compliance risks. The chief compliance officer is a member of the Company’s senior management, and is appointed by the Board of Directors. The chief compliance officer does not hold any concurrent posts or take charge of any departments that conflict with his/her compliance management duties. The Company has established a Legal Compliance Department to assist the chief compliance officer in performing specific compliance management duties, mainly including: establishment of the compliance management system of the Company; compliance training, inspection and guidance; assessment and unified disposal of compliance risks; compliance review and compliance reports; cooperation with external compliance supervision and management institutions; anti-money laundering and Chinese Wall; establishment of the legal system of the Company; review of legal documents; handling of legal affairs; assessment of and consultation on legal risks. All departments and branches of the Company have their own compliance officers. A compliance officer is mainly responsible for the compliance management work of the unit he/she belongs to, carrying out timely and effective supervision, inspection, assessment and reporting on the implementation of compliance policies and procedures by such unit and its staff, and is responsible for the unit’s communication and exchange of information with the Legal Compliance Department and other compliance management work. ![]() 201 The Company further strengthened the vertical management on compliance of branches, established a three-dimensional compliance management mechanism, promoted the construction of digital compliance, and deepened the effective integration of business and compliance. Each branch of the Company has established and improved various compliance management systems and mechanisms in accordance with their own actual situations. The Company established the management measures for compliance of subsidiaries, which made detailed arrangements for basic principles, organizational structure and working mechanism of compliance management of the subsidiaries, and established a sound compliance management system appropriate to the group strategy on the basis of ensuring the independence of the subsidiaries’ legal representatives. (II) Compliance System Building of the Company The Company continued to improve the compliance management system and formed various compliance management systems, including the Compliance Management System (2017 Revision), Measures for the Compliance Management of Subsidiaries (2020 Revision), Daily Working Measures for Compliance Management (2020 Revision), Measures for Management of Compliance Management Personnel (2020 Revision) and Measures for the Implementation of Compliance Accountability. During the Reporting Period, the Company formulated or amended compliance systems such as the Contract Management System, the Administrative Measures on Securities Investment Behaviors of Staff, the Basic System for Anti-Money Laundering and Anti- Terrorism Financing, the System for Prompt Reporting of Significant Events, the Measures on Handling Business Complaints from Customers, and the Guidelines on Compliance Management of Proxy Sales of Private Financial Products, which further optimized the compliance control system and the anti-money laundering management system. (III) Implementation of the Compliance Management Mechanism Since the full implementation of the compliance management system, the Company saw continuous improvement of its compliance management work, explored to build up the “core competitiveness in terms of compliance” and saw significant improvement in the standardization of operations. During the Reporting Period, by adhering to the work objective of “seeing clearly, managing well and doing a good job”, the Company consolidated the fundamentals in collaboration with various businesses, continued to strengthen business synergy to support business innovation, iterated and upgraded the digital compliance capabilities. It effectively implemented the new Anti-Money Laundering Law ( 《反洗錢法》 ), made solid efforts to prevent the risks of economic sanction and export control, and continued to enhance the management of employees’ behaviors in securities investment, so as to empower the business to speed up the building of a core competitive advantage in compliance. ![]() 202 (IV) Information about Inspection Carried out by the Compliance Department during the Reporting Period During the Reporting Period, the compliance department of the Company continued to carry out targeted inspections on key businesses and key processes, and organized and launched compliance inspections on fund custody and service business, compliance inspections on financial product proxy sale and introduction, compliance inspections on stock options brokerage business of branches, special compliance inspections on subsidiaries and special inspections on anti-money laundering, etc. as well as continued to follow up on the progress of rectification and improvement work. (V) Progress of Audit Work of the Audit Department during the Reporting Period During the Reporting Period, the Company’s Audit Department improved the audit mechanism, optimized the project process, strengthened team building and deepened technological empowerment, striving to build a “centralized, unified, overall, authoritative and efficient” supervision system, and actively fulfilling the work requirements of “acting like the arms employing the fingers, like a shadow following the body and like a thunder through the ear”. It carried out inspections and evaluation on the establishment and implementation of the internal control mechanisms of each department and subsidiary, and each branch and securities business department of the Company, the legality and compliance of business operation, operating guarantee, client services, anti-money laundering and innovative business, as well as the accuracy of financial revenue and expenditure and accounting calculation, ensuring all works to comply with the quality control requirements and contributing to the strategy implementation and steady operation of the Company. During the Reporting Period, the Company’s Audit Department served the classified and stratified customer service system that links the whole business chain, continued to expand the scope of audit supervision in depth and width without leaving any area undiscovered, ensuring that audits are carried out in an overall and rigorous manner and that violations must be held accountable. During the Reporting Period, it completed 190 audit items, including 17 regular and General Managers’ departure audits on business and management departments, including the research institute, asset custody department, financial products department, securities investment department, wealth management department, fixed income department, debt financing department, margin financing and securities lending department, sales and trading department, platform operation department, investment advisor development department, financial innovation department, central trading room, office; 11 regular and senior management’ departure audits on branches, including Huatai Futures, Huatai United Securities, Huatai Asset Management, Huatai Innovative Investment, Huatai Purple Gold Investment, Huatai International and Jiangsu Equity Exchange; 22 departure and mandatory leave audits on General Managers of branches, including those in Yancheng, Yunnan, Yangzhou, Changzhou, Shenzhen, Nanjing, Xuzhou, Zhenjiang, Jiangxi, Tianjin, Wuxi, Zhejiang, Sichuan, Shandong, Shanghai, Anhui, Hubei, Hunan, Beijing, Suzhou and Taizhou; 127 departure and mandatory leave audits on General Managers of securities branches, including those in Beijing Yonghe Palace, Xisanhuan in Beijing, Suzhou Street in ![]() 203 Beijing, Century Avenue of Pudong New District in Shanghai, Huanghe Road in Shanghai, Raffles Square of Huangpu District in Shanghai, Huanshi East Road in Guangzhou, Zhujiang West Avenue in Guangzhou, Yuncheng East Road in Guangzhou, Yitian Road in Shenzhen, Zhongxin Road of Houhai in Shenzhen, Zhenghe Middle Road in Nanjing, Zhimaying in Nanjing, Changjiang Road in Nanjing, Ganjiang West Road in Suzhou and Xinshi Road in Suzhou; 13 special audits including assessment of the effectiveness of corporate compliance management, corporate internal control evaluation, effectiveness evaluation of the dynamic monitoring system for corporate risk control indicators, evaluation of corporate anti-money laundering, specific securities investment and funds custody and service business, specific funds sales business, specific related-party transactions, specific corporate system operation and maintenance as well as security management and special key matters in 2023. As of the end of the Reporting Period, audit reports have been issued for 182 audit items; 575 audit opinions and suggestions were put forward; according to the Implementing Rules for Penalties of Illegal Behaviors Discovered in Audit of Huatai Securities Co., Ltd., suggestions were made on penalties for 126 person-times and the penalty amounted to RMB185,000, to reinforce the accountability constraints and achieve a warning effect. As of the end of the Reporting Period, 503 audit issues had reached the deadline for rectification (one month after the issuance of the document), and 481 of them had been rectified, representing a rectification completion rate of 95.63%. All units under auditing actively coordinated in the auditing process and the audit opinions and suggestions were recognized by units under auditing and their responsible persons. During the Reporting Period, the Company’s Audit Department promoted the improvement of the audit quality control mechanism with reference to new external regulations. On the one hand, against the background of formal implementation of the Guidelines for Internal Audit of Securities Firms ( 《證券公司內部審計指引》 ), the Internal Audit Management System ( 《內部審計管理制度》 ) was formulated to clarify the positioning of internal audit functions and basic work requirements from five aspects, namely, organizational structure and personnel management, terms of reference, implementation of work procedures, application of results and audit accountability; and with respect to audit projects that involved a large number of personnel in key positions which accounted for a high proportion, the Measures for Internal Audit of Personnel in Key Positions ( 《關鍵崗位人員內部審計辦法》 ) was amended to refine the scope of audit and clarify the direction of audit. On the other hand, focusing on improving work quality and optimizing audit quality and process control, a dedicated task force was set up to formulate the Administrative Measures on Internal Audit Quality Control ( 《內部審計質量控制管理辦法》 ), which aims to establish a mechanism for the operation of integrated, coherent and consistent audit processes, including audit planning, organization and implementation, review and examination, and supervision and rectification, and build a mechanism for the allocation of resources and elements that matches the audit duties and responsibilities. ![]() 204 During the Reporting Period, the Company’s Audit Department strengthened the scenario empowerment of audit work based on platform construction. On the one hand, it improved online audit management by refreshing the audit platform, with a brand- new audit work platform put into full use for audit projects after completion of the first phase of functional construction of the new audit system, and while meeting the needs of project implementation, more process-oriented and convenient functions have been under continuous construction around the OKR target. On the other hand, based on audit data specifications, it enhanced use of data analysis, further improved data demand management specifications of the audit data mart, made full use of various data governance tools available in the Company’s digital intelligence middle platform to carry out data governance and integration, and continued to expand scenarios for use of data analysis. In addition, it widely mobilized audit staff to stimulate innovation based on audit needs, and explored various segmented audit scenarios with the help of the Company’s competition resources or intelligent tools, with the two objectives of “empowering business development” and “empowering audit quality and efficiency”. During the Reporting Period, the Company’s Audit Department continued to promote the application of audit results, giving equal emphasis to the “latter part” of audit rectification and the “former part” of revealing problems by auditing, ensuring the planning, promoting and implementing work to be done in an integrated way. On the one hand, it strengthened personnel allocation to rectification and supervision, improved the design of rectification tracking process, developed and launched an audit rectification function module based on the audit work platform, and connected the module with a project implementation module to realize an automated task delivery mechanism for initial audit rectification; it kept track of issues that had not been properly rectified on an ongoing basis, and made rectification and supervision work more practical and detailed, so that it could implement the online life-cycle management of the audit issues from discovery to rectification. On the other hand, it tapped into the value of issues, implemented results transformation and kept normalized delivery of reports to the operating management and compliance and risk control departments, sending specifically gathered reports to relevant units for their work reference; it put forward specific recommendations to relevant units to promote prevention and control from the source; as for general and typical issues, it compiled and delivered analysis reports on auditing issues, and sent audit briefs to the whole company to prevent the “broken windows effect”. ![]() 205 XVI. INFORMATION ABOUT THE STAFF OF THE PARENT COMPANY AND MAJOR SUBSIDIARIES AS AT THE END OF THE REPORTING PERIOD (I) Information about the staff Number of staff employed by the parent company 11,441 Number of staff employed by major subsidiaries 5,523 The total number of staff employed 16,964 Number of retired staff of the parent company and its major subsidiaries that need to be paid for the cost 232 Profession Composition Profession Number of staff Operation professionals 10,997 Operation support professionals 2,630 Research and development professionals 3,337 Total 16,964 Education Level of education Number (persons) Doctor 164 Master 7,561 Bachelor 6,724 Junior college graduate and below 881 Total 15,330 Note: Due to the internal policies of corporations in the United States, the above statistics do not include those of employees of corporations in the United States. Number of the Group’s staff includes dispatched workers and brokers etc. As of the end of the Reporting Period, the Group had a total of 10 members of senior management, of whom 8 were male and 2 were female. The Group had 8,506 male employees and 6,824 female employees in total, representing 44.5% being female employees (Note: Due to the internal policies of US companies, the gender structure statistics do not include US company employees). The Board is of the opinion that the Company has achieved gender diversity among its employees (including senior management), and is not aware of any factors or circumstances which make achieving gender diversity across the workforce more challenging or less relevant. The Company issued the “Statement of Rights and Benefits of Huatai Securities Co., Ltd.” ( 《 華泰證券 股份有限公司權益及福利聲明》 ) on the official website of the Company, which explicitly advocates employee diversity and ensures that the employment and career development of employees are not affected by any factors such as race, faith, gender, religion, nationality, ethnicity, age, marital status and social status. ![]() 206 (II) Remuneration policy The Company implements the concept of stable operation, closely integrates compensation management with risk management, pays attention to the bottom-line requirements of compliance and fully considers the impact of market cycle fluctuations, industry characteristics and the Company’s business development trends. The Company integrated the cultural concept of “compliance, integrity, professionalism and stability” into its compensation management and continued to improve its remuneration management system compatible with its operation performance, business nature, level of contribution, compliance and risk control, and social culture, as well as established and improved a sound remuneration incentive and restraint mechanism to promote high-quality and sustainable development of the Company and the industry. The Company attached importance to the linkage between remuneration and benefits, took into account both internal fairness and external competitiveness of incentives, and established a remuneration and incentive allocation mechanism that is linked to the Company’s overall benefits, guided by the results of the comprehensive appraisal, and matched with compliance and risk management. Staff remuneration of the Company consists of fixed salary, rank-based allowances, performance bonus, medium and long- term incentives and benefit plans, etc. The Company has established and implemented the restricted share incentive scheme of A Shares in accordance with national laws and regulations, which established a sound medium and long-term incentive and restraint mechanism to gather core talents. Pursuant to relevant laws and regulations, the Company makes full payments to social insurances and housing fund accounts for staff in accordance with laws. Meanwhile, the Company has established the supplementary medical insurance plan and enterprise annuity plan to improve supplementary medical care and retirement treatment of staff. (III) Training programs In line with the development trend of industry innovation and transformation, the Company continued to centralize its training on the aspects including ideological and political, industry culture, comprehensive quality, professional ability, professional ethics and international vision and its annual training plan was implemented smoothly. The Company launched ideological and political education and securities industry culture training to promote the integration of theories, culture building and talent cultivation; formulated education and training programs for cadres, and carried out three types of in-depth training on improving theoretical literacy, political competence and duty performance; and organized series of training projects on career development such as the “BAL” project for managers, the “HIPO” project for skilled employees and the “STAR” project for new employees to support employees’ career development; implemented business trainings on wealth management, institutional business, financial technology, compliance and risk control and etc. to improve employees’ professional capabilities and strengthen their professional ethics; and rolled out a trend forum program to broaden the international horizon of employees and strengthen domestic and overseas interconnections. In addition, the Company effectively utilized the cloud learning platform and continuously optimized its functions to improve employees’ user experience. During the Reporting Period, the Company organized 513 live broadcast training sessions on the platform. 1,032,500 participants studied through the platform and completed 366,900 hours of learning with an average of 36.85 hours for each participant. (IV) During the Reporting Period, there was no labor outsourcing by the Company. ![]() 207 XVII. SHARE INCENTIVE SCHEME, EMPLOYEE STOCK OWNERSHIP PLAN OR OTHER EMPLOYEE INCENTIVES MEASURES AND THEIR IMPLICATION On February 8, 2021, a series of resolutions including the Resolution on the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. (Draft) and its Summary was considered and approved at the Company’s first extraordinary general meeting of 2021. On March 23, 2021, upon consideration and approval at the fourteenth meeting of the fifth session of the Board of Directors of the Company, the Company made adjustment to the Restricted Share Incentive Scheme of A Shares and agreed to grant restricted A Shares to the incentive participants, and the grant date was determined to be March 29, 2021. For details, please refer to the announcements of the Company dated December 31, 2020 and March 23, 2021. (I) Summary of the Share Incentive Scheme 1. Purposes The Company has formulated the Incentive Scheme in accordance with the relevant requirements of the Company Law, the Securities Law, the Trial Measures on Implementation of Share Incentive Schemes by State-owned Listed Companies (Domestic) (Guo Zi Fa Fen Pei [2006] No. 175) ( 《國有控股上市公司 ( 境內 ) 實施 股權激勵試行辦法》 ( 國資發分配 [2006]175 號 )), the Notice on Issues concerning Regulating the Implementation of the Share Incentive Schemes by State-Owned Listed Companies (Guo Zi Fa Fen Pei [2008] No. 171) ( 《關於規範國有控股上 市公司實施股權激勵制度有關問題的通知》 ( 國資分配 [2008]171 號 )), Opinions on Supporting Share Repurchase by Listed Companies (CSRC Announcement [2018] No. 35) ( 《關於支持上市公司回購股份的意見》 ( 中國證監會公告 [2018]35 號 )) and The Administrative Measures on Incentive Scheme of Listed Companies (CSRC Decree No. 148) ( 《上市公司股權激勵管理辦法》 ( 中國證監會令第 148 號 )). The main purposes of implementing the Incentive Scheme are as follows: (1) to deepen and implement the mixed-ownership reform of state-owned enterprises; (2) to stabilize and enhance the Company’s value; (3) to advocate the concept of joint and sustainable development of both the Company and the individual; (4) to establish and improve the long-term incentive and restriction mechanism of the Company. 2. Scope of the Incentive Participants The incentive participants granted under the Incentive Scheme shall include directors and senior management officers and other core key employees of the Company, but exclude non-executive Directors (including independent Directors) and Supervisors of the Company. All of the incentive participants are employed with the Company (including branches) or wholly-owned or majority-controlled subsidiaries. ![]() 208 3. Interests Proposed to be Granted under the Share Incentive Scheme The Restricted A Shares proposed to be granted to the incentive participants under the Incentive Scheme shall be not more than 45,640,000 shares, representing 0.50% of the total share capital of the Company at the end of the Reporting Period. The source of shares is the ordinary A shares repurchased from the secondary market by the Company. The grant price shall be RMB9.10 per share and shall not be lower than the higher of 50% of the average trading price of the A Shares for the last trading day preceding the date of the Share Incentive Scheme and 50% of the average trading price of the A Shares for either the last 20 trading days, 60 trading days or 120 trading days immediately preceding the Share Incentive Scheme. 4. Validity Period of the Share Incentive Scheme and Arrangement of Lock-up Period The validity period of the Incentive Scheme shall commence from the date of completion of registration of the granted Restricted Shares and end on the date when all the Restricted Shares granted to the incentive participants are fully unlocked (excluding those subject to voluntary lock-up or reduction restriction over Directors and senior management) or repurchased and deregistered, for a maximum of six years. As of the disclosure date of this report, the remaining term of the Incentive Scheme is approximately two years and one month. The lock-up period of the Restricted Shares granted under the Incentive Scheme is 24 months from the date of completion of registration for the grant of the corresponding portion of the Restricted Shares, and the unlocking period and unlocking schedule of each period of the Restricted Shares granted is set out below: Unlocking Arrangement Unlocking Period Unlocking proportion The first unlocking period Commencing from the first trading day upon the expiry of 24 months from the date of completion of registration for the grant of the corresponding portion of the Restricted Shares to the last trading day of 36 months from the date of completion of registration for the grant of the Restricted Shares 33% The second unlocking period Commencing from the first trading day upon the expiry of 36 months from the date of completion of registration for the grant of the corresponding portion of the Restricted Shares to the last trading day of 48 months from the date of completion of registration for the grant of the Restricted Shares 33% ![]() 209 Unlocking Arrangement Unlocking Period Unlocking proportion The third unlocking period Commencing from the first trading day upon the expiry of 48 months from the date of completion of registration for the grant of the corresponding portion of the Restricted Shares to the last trading day of 60 months from the date of completion of registration for the grant of the Restricted Shares 34% (II) Particulars of the Grant under the Share Incentive Scheme On April 7, 2021, the Company received the Certificate of Registration of Changes in Securities issued by China Securities Depository and Clearing Corporation Limited Shanghai Branch to set out the record date being April 6, 2021 and granted 45,488,000 Restricted A Shares to 810 eligible incentive participants at the grant price of RMB9.10 per Share. The Company has completed the registration of the grant of the restricted A Shares. For details, please refer to the announcement of the Company dated April 7, 2021. (III) Subsequent Development of the Share Incentive Scheme during the Reporting Period 1. Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company and Listing of Relevant Shares The eighth meeting of the sixth session of the Board and the seventh meeting of the sixth session of the Supervisory Committee of the Company held on April 12, 2024 considered and approved the Resolution on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares of the Company respectively. The Company has completed the relevant procedures for release from selling restriction of 13,269,954 restricted shares held by 731 incentive participants in accordance with relevant regulations, the above-mentioned Shares were released from selling restriction and were listed for trading on May 16, 2024. The closing price of A Shares as at the trading date preceding to the release of selling restriction (i.e. May 15, 2024) was RMB13.73 per share. 2. Repurchase and Cancellation of Part of the Restricted A Shares The eighth meeting of the sixth session of the Board, the seventh meeting of the sixth session of the Supervisory Committee of the Company held on April 12, 2024 and the 2023 Annual General Meeting, the 2024 First A Share Class Meeting, and the 2024 First H Share Class Meeting of the Company held on June 20, 2024 considered and approved the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares of the Company, respectively. The Company repurchased and canceled part or all of 2,082,559 restricted shares granted to 175 persons but subject to selling restriction due to non-fully fulfillment of condition of individual performance by incentive participants, release or termination of employment with the Company and other circumstances. ![]() 210 During the Reporting Period, changes in the restricted A Shares granted under the Share Incentive Scheme are as follows: Participant Number Locked at the Beginning of the Period Number Newly Granted Number Unlocked Number Cancelled Cancellation Price Number Locked at the End of the Period Zhou Yi 482,400 – 237,600 – – 244,800 Five highest remuneration individuals 381,900 – 188,100 – – 193,800 Other incentive participants 28,414,092 – 12,844,254 2,082,559 7.37 13,487,279 Total 29,278,392 – 13,269,954 2,082,559 7.37 13,925,879 (IV) There was no share incentive granted to the Directors and senior management during the Reporting Period. (V) Appraisal mechanism for the senior management and the establishment and implementation of incentive mechanism during the Reporting Period During the Reporting Period, the Company comprehensively promoted the tenure system and contractual management of the operating management, and organized senior management to sign the annual operating performance responsibility letter. The Company followed the principle of sharing goals, comprehensively benchmarking the market and attaching equal importance to incentives and restrictions in carrying out annual performance appraisal on senior management. Appraisal on senior management adopts the target appraisal on key performance indicators. The performance indicators are related not only to the annual operating goals of the Company but also reflect the orientation of compliance operation as well as the emphasis and difficulties of relevant work charged by such individual. The performance indicators and target value on senior management are determined by the Board based on the Company’s annual operation strategies, the characteristics of the Company, the market environment and others. The Board determines the level of annual appraisal and remuneration allocation of senior management at the end of the year after comprehensively considering the Company’s annual operating goals, the completion of relevant work charged by the senior management and the special annual compliance appraisal. ![]() 211 XVIII. PROPOSAL OF PROFIT DISTRIBUTION OR CAPITALIZATION FROM CAPITAL RESERVE (I) Formulation, implementation or adjustment of cash dividend policy Article 261 of the Articles of Association has clarified the Company’s profit distribution policy, the decision-making process for the profit distribution plan and the decision-making process for adjustments of the profit distribution policy. The policy of the Company’s profit distribution is: “The Company shall focus on generating a reasonable investment return to the investors and implements continual and steady policy of profit distribution; the Company’s profit distribution shall not exceed the scope of accumulated distributable profits nor impair the Company’s continual operational capability; the Company may distribute dividends in form of cash, shares or a combination of cash and shares. Except for the special condition under which the Company plans to conduct material investments or make major cash expenses within the next twelve months, or other conditions that may result in the fact that the Company fails to comply with the regulatory requirements regarding net capital, the Company shall distribute its dividends in form of cash if the Company’s profits for the current year and its accumulated non-distributed profits are positive; for the last three years, the Company’s accumulated profits distributed in form of cash shall not be less than 30% of the annual average distributable profit realized for the last three years; upon the proposal by the Board of Directors and approval by the general meeting, an interim dividend distribution may be made in the form of cash; the Company may distribute dividends in the form of shares based on the annual profits and cash flow status and subject to the satisfaction of the lowest ratio for cash dividend and the reasonableness of the Company’s equity scale.” For the last three years (including the Reporting Period), the Company did not have any plan or proposal regarding capitalization from capital reserve to share capital. The details of the profit distribution plan or proposal of ordinary shares of the Company over the last three years (including the Reporting Period) were as follows: In 2022, the Company distributed cash dividend of RMB4.50 (tax inclusive) per 10 shares based on the Company’s total share capital of 9,075,589,027 shares after deducting 45,278,495 A Shares deposited in the special account for securities repurchase and 925,692 A Shares to be repurchased and cancelled (i.e. on the basis of 9,029,384,840 shares), with the total cash dividend of RMB4,063,223,178.00 (tax inclusive), representing 36.76% of net profit attributable to the shareholders of the Parent Company on a consolidated basis for 2022. In 2023, the Company distributed cash dividend of RMB0.43 (tax inclusive) per share based on the Company’s total share capital of 9,029,384,840 shares prior to the implementation of the plan, with the total cash dividend of RMB3,882,635,481.20 (tax inclusive), representing 30.45% of net profit attributable to the shareholders of the Parent Company on a consolidated basis for 2023. In 2024 Interim, the Company distributed cash dividend of RMB0.15 (tax inclusive) per share based on the Company’s total share capital of 9,027,302,281 shares prior to the implementation of the plan, with the total cash dividend of RMB1,354,095,342.15 (tax inclusive), representing 25.50% of net profit attributable to the shareholders of the Parent Company on a consolidated basis for the half year of 2024. ![]() 212 In 2024, after comprehensive consideration of factors such as the interests of shareholders and the development of the Company, the 2024 profit distribution proposal of the Company is as follows: 1. The Company will distribute cash dividend of RMB0.37 (tax inclusive) per Share based on the Company’s total share capital as of the end of the Reporting Period of 9,027,302,281 shares, with the total cash dividend of RMB3,340,101,843.97 (tax inclusive). The Company effected the interim profit distribution for 2024, which is a cash dividend of RMB0.15 (tax inclusive) per Share, with the total cash dividend of RMB1,354,095,342.15 (tax inclusive). The aggregate cash dividend (including distributed interim cash dividend) of the Company for the year amounted to RMB4,694,197,186.12 (tax inclusive), resulting in an aggregate cash dividend of RMB0.52 (tax inclusive) per Share, representing 30.58% of net profit attributable to the shareholders of the listed company in the consolidated statements for the year of 2024. If the total share capital of the Company changes as a result of repurchase and cancellation of shares granted in the equity incentive during the period from the disclosure date of this proposal to the record date of the implementation of the dividend distribution, the Company intends to maintain the distribution ratio per share unchanged and adjust the total distribution accordingly. The remaining profits available for distribution to investors will be carried forward to the next year. 2. Cash dividend is denominated and declared in RMB and paid to holders of A Shares (including the depositary of GDRs) and the investors of Southbound Trading in RMB and to holders of H Shares (excluding the investors of Southbound Trading) in HKD or RMB. Holders of H Shares (excluding the investors of Southbound Trading) will be given the option to elect to receive all (save in the case of HKSCC Nominees Limited, which may elect to receive all or part of its entitlement) of the dividend in HKD or RMB. Further details with respect to dividend currency election will be announced in due course. The actual distribution amount in HKD shall be calculated at the rate of average basic exchange rate of RMB to HKD issued by the PBOC five business days prior to the date of the 2024 Annual General Meeting of the Company. Upon consideration and approval of the profit distribution proposal of the Company for 2024 at the 2024 Annual General Meeting of the Company, the Company will distribute the cash dividend for 2024 before August 31, 2025. (II) Particulars of cash dividend policy Whether it is in compliance with the requirements of the Articles of Association or the resolutions of general meetings √Yes □ No Whether the dividend distribution criteria and proportion are well defined and clear √Yes □ No Whether the relevant decision-making procedures and mechanism are complete √Yes □ No Whether the independent directors fulfil their duties and play their roles √Yes □ No Whether the minority shareholders have the opportunities to sufficiently voice their opinions and make requests, and whether their legal interests are fully protected √Yes □ No ![]() 213 (III) Proposal of profit distribution and share capital increase by way of transfer from capital reserves during the Reporting Period Unit: Yuan Currency: RMB Number of bonus shares per 10 shares (share) – Dividends per 10 shares (Yuan) (tax inclusive) 5.20 Number of increased shares per 10 shares (share) – Amount of cash dividends (tax inclusive) 4,694,197,186.12 Net profit attributable to the shareholders of ordinary shares of the Company in the consolidated statement 14,635,336,947.13 Percentage of amount of cash dividends to net profit attributable to the shareholders of ordinary shares of the Company in the consolidated financial statements (%) 32.07 Amount for repurchase of shares under cash included in cash dividends – Total amount of dividends (tax inclusive) 4,694,197,186.12 Ratio of total amount of dividends to net profit attributable to ordinary shareholders of the listed company in consolidated statements (%) 32.07 Note: Net profit attributable to ordinary shareholders of the listed company is net profit attributable to shareholders of the listed company after deducting the effect of dividends from other equity instruments and restricted share bonuses. For details, please refer to “19. Basic and diluted earnings per share” to the “Notes to the Consolidated Financial Statements” under the “Independent Auditor’s Report and Consolidated Financial Statements” of this report. Based on net profit attributable to shareholders of the listed company for the year, the percentage of cash dividend for the year was 30.58%. (IV) Cash dividends for the last three accounting years Unit: Yuan Currency: RMB Total amount of cash dividends for the last three accounting years (tax inclusive) (1) 12,640,055,845.32 Total amount for repurchase and cancellation for the last three accounting years (2) – Total amount of cash dividends and that for repurchase and cancellation for the last three accounting years (3)=(1)+(2) 12,640,055,845.32 Average annual net profit amount for the last three accounting years (4) 13,051,927,051.72 Cash dividend payout ratio for the last three accounting years (%) (5)=(3)/(4) 96.84 Net profit attributable to ordinary shareholders of the listed company in consolidated statements for the latest accounting year 14,635,336,947.13 Undistributed profit as at the year end of the parent company’s statements for the latest accounting year 26,611,438,102.44 ![]() 214 XIX. OTHER INFORMATION (I) Company Secretary Mr. Zhang Hui is one of the joint company secretaries of the Company, while Ms. Kwong Yin Ping Yvonne, senior vice president of SWCS Corporate Services Group (Hong Kong) Limited, is the joint company secretary fulfilling the relevant qualification requirements of the Hong Kong Listing Rules. The company secretary is mainly responsible for facilitating the operation of the Board, ensuring the effective communication between the members of the Board and the observation of the policies and procedures of the Board, and ensuring the compliance with the Hong Kong Listing Rules and other regulations by the Company. Any Director can discuss with, seek advice from and obtain information from the company secretary. The primary contact person for Ms. Kwong Yin Ping Yvonne at the Company is Mr. Zhang Hui. Each of Mr. Zhang Hui and Ms. Kwong Yin Ping Yvonne has complied with the requirements of Rule 3.29 of the Hong Kong Listing Rules by receiving relevant professional training for no less than 15 hours during the Reporting Period. (II) Responsibilities of the Directors and Auditors in respect of the Accounts The following statement of responsibilities of Directors regarding the financial statements shall be read in conjunction with the responsibility statement of the certified public accountants included in the audit report of this report. Each responsibility statement shall be understood separately. The Board of Directors confirmed that it took responsibility for the preparation of the annual report of the Group for the year ended December 31, 2024. The Board of Directors is responsible for presenting a clear and well-defined assessment of the annual and interim reports, stock price sensitive information, and other matters that need to be disclosed according to the Hong Kong Listing Rules and other regulatory provisions. The management has provided relevant and necessary explanation and information for the Board of Directors so that the Board of Directors could make informed assessment on the financial data and position of the Group for examination and approval at the Board meetings. To the knowledge of all Directors, the Company does not face any events or situations of significant uncertainty likely to give rise to the significant doubt of the Company’s capability of sustainable operations. In addition, the Company has arranged appropriate insurance cover for the legal actions and liabilities which the Directors, Supervisors and senior management may be exposed to. ![]() 215 For the purposes of the United Kingdom’s Financial Conduct Authority’s Transparency Rule 4.1.12(3), each Director (whose names and functions are listed on page 134 of this report) of the Company, to the best of their knowledge, confirm the following two points, respectively: (a) the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (b) the management report (being this annual report, excluding the financial statements referred to above (on pages 8-193 of the financial report attached to this report) and the independent auditor’s report thereon (on pages 1-7 of the financial report attached to this report)) includes a fair review of the development and performance of the business and the position of the Group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that the Group faces. (III) Performance Assessment Results for Directors and Supervisors During the Reporting Period, the Directors and Supervisors of the Company had abided by the relevant provisions of laws, administrative laws and regulations as well as the Articles of Association, and performed their duties and obligations honestly and diligently. All the Directors of the Company have performed their statutory duties honestly, faithfully and diligently in compliance with laws. They have attended Board meetings, various meetings of special committees and special meetings for independent directors in accordance with relevant provisions, considered each proposal seriously, offered advice and suggestions on significant strategic decisions and plans, important investment and financing projects, business innovations, related-party transactions, compliance management and internal control, system construction, appointment of senior management, performance assessment, enterprise cultural construction and social responsibilities of the Company, and acted as professional gatekeepers on such issues, which ensured those material decisions to be scientific and standardized as well as the sustainable and innovative development of the Company, and preserved the interests of the shareholders practically. All the Supervisors of the Company have performed their statutory duties honestly, faithfully and diligently in compliance with laws. They have attended the meetings of the Supervisory Committee in accordance with relevant provisions, attended the Board meetings, considered each proposal carefully, supervised and inspected the legality of operation, material decisions and important business activities as well as the financial position of the Company, actively protected the legal interests of the Company and its shareholders, promoted the legal operation and standardized management, and ensured the sound development of the Company. For details on the performance of duties of the Company’s Directors and Supervisors, please refer to the “Performance of Duties of Directors” and “Performance of Duties of Supervisors” under this section in this report. ![]() 216 (IV) Communication with Shareholders The shareholders’ general meeting is the organ of the highest authority of the Company, and the shareholders exercise their rights through the shareholders’ general meeting. The Company convenes and holds shareholders’ general meetings in strict accordance with the relevant provisions of the Articles of Association and the Rules of Procedures for General Meetings to ensure the equal status of all shareholders, in particular the minority shareholders, and enable them to exercise their rights completely. The Company pays great attention to the shareholders’ opinions and advice, actively and regularly carries out various investor relations activities to keep communication with shareholders and meet their reasonable needs timely. The Company has formulated a series of relatively perfect rules and regulations such as the Administrative System Regarding Investor Relationship, to manage investor relationship in accordance with the standards, systems and procedures. The Company’s Administrative System Regarding Investor Relationship, namely the shareholder communication policy of the Company, was reviewed and amended by the Board on October 28, 2022 to ensure implementation and effectiveness. The Company confirms that the current Administrative System Regarding Investor Relationship, namely the shareholder communication policy of the Company, is effectively implemented by the following measures: The provisions set out in the Administrative System Regarding Investor Relationship are designed to ensure that shareholders of the Company, including individual and institutional investors (collectively, “shareholders”) and, where appropriate, securities analysts and potential investors, have full and equal access to information about the Company in due course, thus to help the effective performance of shareholders’ rights, to enhance communication between shareholders and the Company, and to increase their understanding and recognition of the Company. The main channels through which the Company communicates information to its shareholders are the regular reports, announcements and circulars published on the websites of the SSE, the HKEXnews website of Hong Kong Stock Exchange, the website of LSE and the official website of the Company. In addition, the Company has developed good interaction and communication with its shareholders by means of holding regular results announcement meetings, opening a service hotline, setting up an investor relations column on the website of the Company and conducting on-site research and receptions to ensure timely communication of the relevant information about the Company to Shareholders and relevant parties. The Board of Directors of the Company is willing to listen to shareholders’ advice and encourages shareholders to attend the general meetings to ask the Board of Directors or the management directly about any doubts they may hold. Shareholders may convene extraordinary general meetings or submit interim proposals to general meetings according to the procedures set out in Article 84 and Article 89 of the Articles of Association, which were published on the website of the Shanghai Stock Exchange, the HKEXnews website of the HKEX and the Company’s official website. The Company will arrange for the Board of Directors to answer the shareholders’ questions at its annual general meeting for 2024. ![]() 217 (V) Investor Relations The Board of Directors of the Company attached great importance to investor relations management and was committed to promoting the creation of an open, transparent, inclusive and sharing atmosphere for investor interaction, and to effectively safeguarding the legitimate rights and interests of investors. The Company planned, arranged and organized various activities to manage investor relations with a strong sense of responsibility, including coordinating on-site interviews to the Company, and keeping in contact with regulatory authorities, investors, intermediary agencies and news media and so on. During the Reporting Period, the Company timely updated information on the “Investor Relations” column on the Company’s website, and answered inquiries from investors of the interactive e-platform on the website of the Shanghai Stock Exchange. The Company has received 42 times of onsite investigations and surveys or telephone interviews from approximately 229 researchers and investors such as securities companies and funds companies at home and abroad in the whole year. The Company also carried out daily consultation work seriously for investors and answered their questions in detail. Meanwhile, to assist the issuance of the periodic reports, the Company held 2 presentations for operating performance and 3 online briefings on performance, and proactively attended strategy seminars and investment forums held by domestic or foreign financial institutions. It attended 10 strategy seminars and investment forums during the Reporting Period and maintained full communications with investors and researchers on issues such as the development trend of the industry, operational results of the Company as well as its business development strategy, which effectively promoted investors’ and researchers’ understanding of the business condition and result performance of the Company, completely marketed the development advantages of the Company, and correctly guided market expectations. The Company persisted in inducing and analyzing various questions proposed by investors to improve the professionalism, normalization and the quality of investor relations management of the Company. ![]() 218 The Company’s reception of investigations and surveys, communications and participation in strategy seminars and investment forums held by domestic or overseas financial institutions in the year of 2024 are as follows: No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 1 January 4, 2024 Institutional investigations and surveys Onsite interview Guosen Securities (1 person) Business highlights, operations and financial performance, and long-term strategic planning of the Company. 2 January 8 to 9, 2024 UBS Greater China Conference Onsite interview UBS Securities, Principal Global Investors, Fullerton Fund Management, JP Morgan Asset Management, eQ Asset Management, Point 72, Infini Capital Management, Blackrock, etc. (17 persons) 3 January 11, 2024 Institutional investigations and surveys Onsite interview Zheshang Securities, Harvest Fund, Huachuang Captive, China Asset Management, Starock Investment, JF SmartInvest, Taikang Funds, ZhongAn Insurance, etc. (11 persons) 4 January 11, 2024 Institutional investigations and surveys Telephone interview Founder Securities, Pengyang AMC, Zhong Ou AMC, Tianhong Asset Management, China Securities, CICC Fund, ICBCCS, China Asset Management, etc. (15 persons) 5 January 12, 2024 Institutional investigations and surveys Telephone interview BofA Securities, Schroders, Citadel Investment, Pinpoint Fund, Marshall Wace, Ruitong Asset Management, Oaktree Capital Management (8 persons) 6 January 16, 2024 Institutional investigations and surveys Telephone interview Citibank, Abu Dhabi Investment Authority, AllianceBernstein, Mirae Asset Management, China Investment Corporation (CIC), Citadel International, Millennium Capital Management, Nanshan Life (8 persons) 7 January 22, 2024 Institutional investigations and surveys Telephone interview HSBC, Bank of China (Hong Kong), Citadel Investment, China Investment Corporation (CIC), HSBC Jintrust Fund, Pinpoint Asset Management, Metlife China (9 persons) ![]() 219 No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 8 January 30, 2024 Institutional investigations and surveys Telephone interview Fullgoal Fund (1 person) 9 March 29, 2024 Presentation for 2023 Annual Results of HTSC Video and telephone interview UBS Securities, CITIC Securities, CICC, Morgan Stanley, J.P. Morgan, HSBC, BofA Securities, Citibank, Founder Securities (more than 800 persons) 10 April 3, 2024 Institutional investigations and surveys Video interview Wellington (1 person) 11 April 9, 2024 Institutional investigations and surveys Onsite interview Cinda Securities (2 persons) 12 April 15, 2024 Institutional investigations and surveys Teleconference GF Securities, HuaAn Funds (2 persons) 13 April 16, 2024 Institutional investigations and surveys Teleconference GF Securities, Point72, M&G, HSBC Jintrust, Harvest Fund (5 persons) 14 April 17, 2024 Institutional investigations and surveys Onsite interview Hongsike Asset Management, Ningbo Zhiyuan Investment, Shenzhen Wanchuan Fund, Fanhai Investment (8 persons) 15 April 17, 2024 Institutional investigations and surveys Teleconference GF Securities, Penghua Fund, E Fund, ICBCCS (4 persons) 16 April 18, 2024 Institutional investigations and surveys Teleconference GF Securities, Guotai Fund (2 persons) 17 April 19, 2024 Institutional investigations and surveys Teleconference GF Securities, BOC Investment Management (2 persons) 18 May 7, 2024 Institutional investigations and surveys Teleconference GF Securities, Millennium Capital, HSBC Life Insurance, Industrial Bank, Chasing Securities, Kaiyuan Securities, Yuekai Securities, Manulife Fund, Rongtong Fund, etc. (23 persons) 19 May 8, 2024 2024 spring-summer strategy forum of Founder Securities Onsite interview Founder Securities, TF Asset Management, China Life Investment, etc. (7 persons) ![]() 220 No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 20 May 9, 2024 2024 interim strategy forum of Changjiang Securities Onsite interview Changjiang Securities, BlackRock, China Universal Asset Management, etc. (8 persons) 21 May 13, 2024 Institutional investigations and surveys Onsite interview Zhong Ou AMC (2 persons) 22 May 14, 2024 Institutional investigations and surveys Teleconference BlackRock, BofA Securities (2 persons) 23 May 17, 2024 Institutional investigations and surveys Onsite interview CICC (2 persons) 24 June 4, 2024 Institutional investigations and surveys Onsite interview Sinolink Securities (1 person) 25 June 5, 2024 Institutional investigations and surveys Onsite interview Guotai Junan (1 person) 26 June 6, 2024 CITIC Securities 2024 Capital Market Forum Onsite interview CITIC Securities, Zhida Asset Management, Taofu Asset Management, Harvest Fund, Zhong Ou AMC, Wealspring Asset, Caitong Asset Management, Yinhua Fund, ABC-CA Fund, Golden Nest Capital, Wanjia Asset, Broad Asset (14 persons) 27 June 14, 2024 Zheshang Securities 2024 Second Quarter Meeting of Exchange on Major Holdings of Institutions Onsite interview Zheshang Securities, Changjiang Asset Management, Zhongcai Merchants Investment, Hongchou Investment (4 persons) 28 July 9, 2024 Institutional investigations and surveys Onsite interview Cinda Securities, Taikang Asset Management (4 persons) 29 July 9, 2024 Institutional investigations and surveys Telephone interview J.P. Morgan (1 person) 30 July 15, 2024 Institutional investigations and surveys Onsite interview BofA Securities, APS, CIC Hong Kong, Millennium, Aberdeen plc, GSAM, Morgan Stanley Asset Management, Point72 (9 persons) ![]() 221 No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 31 July 26, 2024 Institutional investigations and surveys Telephone interview Prudential plc (1 person) 32 September 2, 2024 Presentation for 2024 Interim Results of HTSC Video and telephone interview Morgan Stanley, UBS Securities, BofA Securities, Goldman, Guotai Junan, CLSA, GF Securities, China Merchants Bank, Citadel Asia Limited, Greenwoods Asset, DBS, CITIC Securities, ICBC International, etc. (more than 500 persons) 33 September 9, 2024 The 31st CITIC CLSA Investors’ Forum Onsite interview Aequitas Investments IFSC Pri, Alquity Investment Management Limited, Columbia Threadneedle Inv, Matthews Asia, Robeco AM, Millennium Partners Group, NAN FUNG GROUP, TD AM, Aberdeen Group, CIC (11 persons) 34 September 10, 2024 Institutional investigations and surveys Telephone interview GF Securities, Brilliance Capital Management Ltd, Wealspring Asset Management, Hedao Asset Management, Ren Bridge Asset Management, HSBC Life, Orient Securities Asset Management, etc. (19 persons) 35 September 19, 2024 Institutional investigations and surveys Onsite interview Fullgoal Fund (1 person) 36 September 19, 2024 Institutional investigations and surveys Onsite interview ICBCCS (1 person) 37 September 19, 2024 Institutional investigations and surveys Onsite interview Changjiang Securities (2 persons) 38 September 20, 2024 Institutional investigations and surveys Onsite interview GF Securities, CITIC Asset Management, CCB Principal Asset Management (4 persons) 39 September 24, 2024 Institutional investigations and surveys Onsite interview Industrial Securities (1 person) ![]() 222 No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 40 September 24, 2024 Institutional investigations and surveys Teleconference Founder Securities, Life Insurance, Futurus Vessel, Taikang Asset, Orient Securities Proprietary, Zheshang Fund, Pacific Asset Management, CICC Fund, Everbright PGIM, HSBC Jintrust, Haojun Investment (12 persons) 41 September 27, 2024 UBS Asia Pacific Finance, Fintech and Real Estate Company Day Onsite interview UBS Securities, CIC (2 persons) 42 October 8, 2024 Institutional investigations and surveys Teleconference Greenwoods Asset (2 persons) 43 November 5, 2024 Citi China Investment Summit 2024 Onsite interview Citibank, Pedder Street Investment Management, Turiya Advisor Asia, Citadel International Equities (5 persons) 44 November 6, 2024 Institutional investigations and surveys Teleconference Sinolink Securities, Hongde Fund, Guangdong Guangjin Investment, Shanghai Chaos Investment, New China Fund, Cathay Securities Investment Trust, Shanghai Wealspring Asset Management, Heji Investment Fund, China Asset Management, etc. (13 persons) 45 November 6, 2024 Institutional investigations and surveys Teleconference Guosen Securities, Dawn Petrel Asset, Shanghai Homey Asset Management (6 persons) 46 November 7, 2024 Institutional investigations and surveys Teleconference GF Securities, Wealspring Asset, Pinpoint Investment, Point72, China Merchants Fund, HZBANK Wealth Management, Sumitomo Mitsui Asset Management (SMAM), etc. (27 persons) 47 November 11, 2024 Institutional investigations and surveys Teleconference BofA Securities, HSBC (2 persons) ![]() 223 No. Date of reception Meeting name Way of reception Guests Major topics discussed and information provided 48 November 13, 2024 CITIC Securities 2025 Capital Market Annual Conference Onsite interview CITIC Securities, E Fund, CLSA, China Re Asset Management, Shanghai Qingxi Industrial Development, Shenzhen Qianhai Xinuo, Point72, Dehui Investment (11 persons) 49 November 14, 2024 Institutional investigations and surveys Teleconference BofA Securities, Morgan Stanley Investment Management, AllianceBerstein, CIC Hong Kong, BEA Union Investment Management, Victory Capital Management, Pinpoint Fund (7 persons) 50 November 15, 2024 Institutional investigations and surveys Teleconference Prudential plc (1 person) 51 November 15, 2024 Institutional investigations and surveys Onsite interview Fullgoal Fund (1 person) 52 December 13, 2024 Institutional investigations and surveys Onsite interview Huachuang Securities (1 person) 53 December 16, 2024 Institutional investigations and surveys Onsite interview CICC (2 persons) 54 December 19, 2024 Forecast – GF Securities Closed- door Exchange Meeting of Listed Companies 2025 ( 預 見 2025 廣發証券上 市公司閉門交流會 ) Onsite interview HSBC Jintrust, BOSC Asset Management, Zhong Ou AMC Company, PICC Asset, China Asset Management, AIA Life, Heng An Standard Life Insurance, etc. (17 persons) (VI) Corporate Cultural Construction The Company strives to become a first-class investment bank with both domestic advantages and global influence, always adheres to “high efficiency, integrity, stability and innovation”, is committed to the service philosophy of “One Customer” internally and “One Huatai” externally, spares no effort in being accountable to all clients, shareholders, staff and society to achieve harmony and unity. The Company continuously strengthened the cultural characteristics of “technology empowerment, innovation and initiative”, gradually cultivating an “open and inclusive” cultural atmosphere that is “positive and innovative” and let the corporate spirit of “openness, inclusiveness, innovation, dedication and responsibility” be internalized within and manifested in actions. ![]() 224 The Reporting Period marked a year for the Company to go further in cultural construction. In addition to continuously practicing the cultural concept and following the Ten Elements of Cultural Construction of the Securities Industry ( 《證券行業文化建 設十要素》 ), the Code of Ethics for Securities Practitioners ( 《證券從業人員職業道德準 則》 ) and other documents, the Company mainly focused on the requirements of “Five Musts and Five Don’ts (“ 五要五不 ”)” on financial culture with Chinese characteristics and made deployment to implement relevant work. During the Reporting Period, the Company issued the Guiding Opinions on Implementation of Major Decisions and Deployments of the Party Central Committee Concerning Acceleration of Building a Financial Powerhouse and High-Quality Development of Finance ( 《貫徹落實黨中央關 於加快金融強國建設和金融高質量發展重大決策部署的指導意見》 ), which provides clear guidelines for the Company to enhance the quality and efficiency of its financial services for the real economy, to do a good job in “Five Major Areas of Finance (“ 五 篇大文章 ”)” and to put into practice the financial culture with Chinese characteristics. The Company convened a special meeting on cultural construction and considered the Work Progress of Huatai Securities in Doing a Good Job in “Five Major Areas of Finance” and Putting into Practice the Financial Culture with Chinese Characteristics ( 《華泰證券紮實做好 “ 五篇大文章 ”, 踐行中國特色金融文化的工作進展》 ), which further clarifies the direction for the Company to follow the relevant requirements, profoundly put into practice the “five musts and five don’ts” on financial culture with Chinese characteristics, and firmly stick to the road of developing finance with Chinese characteristics. The Company focused on integrating cultural construction into its operation and development, translating the advantages of corporate culture into the value creation strengths to serve the real economy, and coexisting with the economy and society to achieve common prosperity and integrated development. The Company organized and carried out corporate culture promotion and publicity activities through various effective methods and channels within and beyond the Company via online and offline manners, and the content publicized were highly consistent with the Company’s cultural connotations and business management philosophy. The Company launched publicity activities under the theme of “Carrying Forward Financial Culture with Chinese Characteristics” and published relevant articles in mainstream media such as People’s Daily Online Jiangsu Channel, China Securities Journal, Xinhua Daily, etc. Moreover, the Company carried out various activities such as the initiative of “Actively Cultivating and Carrying Forward Financial Culture with Chinese Characteristics” and series propaganda in risk culture month for all employees, conducted training under the theme of “Bearing in Mind Responsibility and Discipline and Setting Standards to Contribute to Nation Rejuvenation in the Future” ( 知責明紀立標尺強國有我啟未來 ) for young employees, and convened the commendation ceremony of “Shining Huatai, A Promising Future” ( 星光華泰閃耀未來 ), to specifically inspire and motivate employees to consciously practice the cultural concepts of the industry and the Company. The Company also worked to build differentiated cultural brands with innovative thinking. Through organizing special projects such as convening series cultural salon activities, producing open courses on behavioral finance, and introducing excellent cultural construction cases to the case pool of leading universities and colleges, the Company constantly enhanced its professional influence in various fields, further strengthened the cultural identity of its employees, and promoted its steady development. ![]() 225 The Company always attaches importance to the feedback from internal and external. It carries out “Employee Reception Day” activities online and offline every month, and put in place a special post named “Freely Talk Inner Voices, Offer Help with Same Empathy” ( 暢談心聲共情同力 ) in the special column of “Colleague Bar ( 同事 吧 )”, an instant messaging APP online, to optimize regular interactive communication mechanism between the Company’s leaders and employees. Meanwhile, a sound and effective feedback supervision system has been established to strengthen the communication and feedback for relevant issues. The Company pays attention to the establishment and optimization of financial and non-financial reward measures for cultural construction, with organizations, systems, personnel, funds and platform put in place to foster a virtuous working mechanism led by the headquarter, cooperated by the Group and participated by all staff. During the Reporting Period, the Company carried out various commending activities to stimulate talents to be innovative and vigorous, improve their value and empower their growth; at the same time, the Company also adopted effective measures to encourage its staff to participate in the trainings in relation to culture and professional ethics, so as to help its staff develop the awareness of conscious protection of state’s financial safety and enhancement on social responsibility. In the new journey of serving high-quality development, the Company has continuously demonstrated its new role, new performance and new image, and constantly enhanced its cultural influence and industry reputation. During the Reporting Period, the Company was awarded 2024 Jinding Award of “Outstanding Cultural Construction Case” by National Business Daily, its “Tai Youth” Party building culture case was selected in the “2023 Annual Report on Cultural Construction of the Securities Industry” ( 《 2023 年證券行業文化建設年報》 ), and the “Research on Prevention of Integrity Risks of Investment Banking Business and Construction of Integrity Culture” ( 《投資銀行業 務廉潔風險防範與廉潔文化建設研究》 ) launched by the Company was awarded the First Prize of 2024 Outstanding Research Results of Ideological and Political Work and Cultural Construction of the Financial System of China (2024 年全國金融系統思想政 治工作和文化建設優秀調研成果一等獎 ). (VII) Independence of the Auditor According to the relevant provisions in Rule 19A.31 of the Hong Kong Listing Rules, annual accounts should be audited by a prestigious certified public accountant (whether it is an individual, a firm or a company), who (whether it is an individual, a firm or a company) also should be independent of the Chinese issuer to the extent that its independent procedures should be substantially the same as those specified in the statements on independence issued in the Companies Ordinance or by the International Federation of Accountants. According to the relevant provisions in Rule D.3.3 of the Corporate Governance Code as set out in Appendix C1 to the Hong Kong Listing Rules, the Audit Committee should review and monitor the independence and objectiveness of external auditors as well as the validity of the auditing process in accordance with applicable standards. During the Reporting Period, the Company re-appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the auditors of A Shares and Deloitte Touche Tohmatsu as the auditors of H Shares. The Audit Committee had carried out necessary review and supervision to ensure the independence between the firms and the Company. ![]() 226 (VIII) Auditor ’ s remuneration For auditor’s audit service fee during the Reporting Period, please refer to “Auditors” under “Other Disclosures” in the section headed “Management Discussion and Analysis and Report of the Board” in this report. During the Reporting Period, the Company and its subsidiaries employed Deloitte (including other members within the Deloitte network) to provide non-auditing services, such as agreed procedures and advisory service, and the fees for such non-auditing services were RMB1.8974 million. (IX) During the Reporting Period, there were no changes to the Company ’ s management measures for information disclosure. ![]() 227 ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES I. ENVIRONMENTAL INFORMATION Currency: RMB Establishment of environmental protection- related mechanisms Yes Investment in environmental protection funds during the Reporting Period (unit: Ten Thousand Yuan) 396.98 (I) The Company and its major subsidiaries are not in the list of attention units discharging pollutants published by the environmental protection authority (II) Description of the environmental protection of enterprises excluding attention units discharging pollutants 1. During the Reporting Period, the Company was not subject to any administrative penalty arising from environmental issues 2. Other environmental information with reference to disclosures of attention units discharging pollutants The Company is a financial company, which is not in the list of attention units discharging pollutants and their major subsidiaries published by the environmental protection authority. The Company entrusts qualified third-party organizations to conduct inspections for the wastewater, exhaust gases and noises of the headquarters office every year. All inspections are in line with the national standards. ![]() 228 (III) Relevant information beneficial to protecting ecosystem, preventing pollution and performing environmental responsibilities The Company actively responds to the Nanjing Municipal Domestic Waste Management Regulations and sets waste sorting points on each floor. It publicizes the concepts and practice on waste sorting among staff through pasting posters on waste sorting and playing videos on waste sorting repeatedly in elevators to create an atmosphere of “waste sorting with all participation” and form a habit of actively sorting and consciously putting waste among employees. The Company disposed waste by upholding the concept of “waste recycling and value innovation”, encouraged reuse of waste materials and entrusted qualified units for the recycling and treatment of non- hazardous and hazardous wastes and wastewater. The Company discharged office wastewater into the municipal sewage pipeline to be disposed of by the municipal wastewater treatment plant, and required the property management center to clear and transport office waste. Electronic waste, light tubes, toners, cartridges and other hazardous waste entrusted to qualified units for recycling, disposal or reuse by the recycling party. The Company optimized the allocation of fixed asset resources and improved the utilization rate of existing assets to avoid idle waste. The Company used the original finishes of offices as much as possible to reduce non-necessary depletion and consumption, and transferred idle physical assets to other units in need for use through the physical asset system, so as to enhance the efficiency of asset utilization. During the year, a total of 1,899 equipment was transferred. As specified in the vehicle management system by the Company, new energy vehicles shall be given priority when purchasing vehicles for corporate affairs and operation of the Company to practice low-carbon and environmental operation. The underground garage of Huatai Securities Square is equipped with charging piles for new energy vehicles to encourage employees to practice green commuting and advocate green and environmental concepts. The Company has established and continues to optimize its energy management system, using the digital platform to provide targeted guidance for the commencement of energy conservation work. At present, the energy management system carries out statistical analysis of the electricity consumption of all electrical equipment in Huatai Securities Square by area, function (air-conditioners, elevators, lighting, kitchen electricity, etc.) and time (year-on-year, quarter-on-quarter/month-on-month), automatically generates statistical data charts and realizes the visualization of the trend of energy consumption, which makes it easier to determine the peaks and valleys of electricity consumption, improve the level of energy-saving operation and management, enhance the efficiency of management and the efficiency of energy utilization, and effectively promote energy saving and emission reduction. The Company promoted paperless office based on the OA system, the electronic signature platform, intelligent business travelling and other platforms, and used environmental-friendly paper for business card production and report printing. The Company actively advanced online procurement, with multiple systems for procurement, contract and payment operating in parallel to fully realize the whole process of online and standardized procurement of office supplies and promotional items, significantly reducing the use of paper materials in the whole process. ![]() 229 (IV) Measures adopted for reducing its carbon emission during the Reporting Period and their effects Adoption of carbon reduction measures Yes Reduction of carbon dioxide equivalent emissions (unit: tons) 56.46 Type of carbon reduction measures (e.g. use of clean energy for power generation, use of carbon reduction technologies in the production process, R&D and production of new products that help reduce carbon emissions, etc.) Use of clean energy for power generation and carbon reduction technologies in data centers ![]() 230 Detailed description Principal methods Specific measures Adopting clean energy • Reduced carbon emissions of office areas through various measures such as sunlight induced lighting device system, air-conditioning ice storage air system, underfloor air distribution system and intelligent lighting control in the office areas. • Headquarters of the Company are equipped with photovoltaic power generation systems, generating 89,841 kWh of electricity in 2024 with photovoltaic power generation systems. Promoting energy conservation and emission reduction • Optimized and upgraded the energy management system, regularly analyzed the energy consumption and enhanced the control over energy consumption. • Continuously promoted energy-saving renovation. Certain precision air conditioners with significant cooling capacity decline have been modified by frequency conversion and fans installation, reducing energy consumption by approximately 22%. For some overheated areas, renovation was made to their return airflow to optimize the return airflow and improve the efficiency of cooling capacity utilization. • The air conditioning system used ice storage cold air, the underfloor air distribution system and other technologies, which gave full play to the energy conservation efficiency of low-temperature air distribution. • Universally applied low-energy LED lighting in office lighting to achieve significant savings in electricity consumption for daily office lighting. • Used video meeting systems to reduce the number of on- site meetings and carbon emissions from business travel. • Practiced the concept of garden office, expanded the area of greenery planting, adopted new construction materials and followed the concept of green, novelty and environmental protection. • Carried out asset allocation, recycled office supplies such as computers. ![]() 231 Principal methods Specific measures Advocating green travel • Formulated relevant documents such as the Administrative Rules for Motor Vehicles and gave priority to purchasing new energy vehicles. • Installed new energy charging piles for new energy vehicles and electric vehicles in underground garages of office parks to encourage green modes of travel. Green data center • Built a low-carbon data center through measures such as improving the heat dissipation efficiency of equipment and renovating air-conditioning rooms for light and heat insulation. • With the goal of creating a green data center, Huatai Securities Square Data Center continued to take various measures to improve energy efficiency from pre- construction to post-operation. • In terms of resource deployment, the Company continued to promote cloud-based business, with approximately 440 physical servers offloaded in 2024. Green office buildings • Huatai Securities Square received the LEED-NC Gold Certification issued by the United States Green Building Council (USGBC), demonstrating the recognition for its resource and energy use efficiency. • In 2024, the Company actively and consistently implemented energy saving and emission reduction policies, and constructed a new R&D center in accordance with the criteria for China Green Building Three Stars and sponge city, whose comprehensive energy-conservation building standard is ≥65%. Strengthening emergence management • Established and improved emergency management measures, implemented a 24-hour duty and accident information reporting system for security personnel, and purchased emergency equipment to effectively minimize the impact of extreme weather on company operations. ![]() 232 II. SOCIAL RESPONSIBILITIES The Company is a financial company in Shanghai, Hong Kong and London. While disclosing its 2024 Annual Report, the Company will also disclose the 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd., which will be published on the website of SSE (www.sse.com.cn), the HKEXnews website of HKEX (www.hkexnews.hk), the website of LSE (www.londonstockexchange.com) and the website of the Company (www. htsc.com.cn) on March 29, 2025. In 2024, in the ESG rating of Morgan Stanley Capital International (MSCI), the MSCI ESG rating of the Company rose from AA to AAA, realizing upgrades for two consecutive years and achieving the highest rating in the global investment banking industry. Rating The highest rating in the global investment banking industry Currency: RMB External donations, public welfare projects Number/Content Description Total investment (Ten Thousand Yuan) 1,553.41 Total investment in public welfare and charity projects of the Company Of which: Funds (Ten Thousand Yuan) 1,553.41 Total investment in public welfare and charity projects of the Company Material equivalent (Ten Thousand Yuan) – – Number of persons benefited (people) – Please refer to the description below this table Description: The Company deeply cultivates the “One Commonweal Heart of Huatai One Yangtze River” ecological conservation program, and continuously carried out biodiversity protection, with approximately 7,000 persons benefited from the program. Through the “Streamlet Action – ‘One Yangtze River’ Subsidy Scheme on Environmental Protection Activities for College Students”, the “Little Step” Support Program for Young Movers under the “One Yangtze River” and the Research and Improvement Workshop of Talents for Sustainable Development under the “One Yangtze River”, the Company built a targeted cultivation system for the growth of talents at various stages in the environmental protection and public welfare industries, with approximately 300 persons benefited. The Company gathered more partners to contribute to the diversified driving force for sustainable development through the Huatai Foundation. In 2024, the Huatai Foundation participated in the evaluation of social organizations in Jiangsu Province for the first time, and was awarded the highest rating of 5A. ![]() 233 (I) Strengthening ESG Governance to Improve System Efficiency 1. Deepening ESG Concepts With the goal of becoming a “leader in sustainable development in the securities industry”, the Company made concrete efforts in the “Five Major Areas of Finance” ( 五篇大文章 ) of financial work by deeply integrating ESG concept into its strategy, operation management and business practices, actively built a sustainable governance system, strengthened its ESG governance capability, and continuously promoted the process of its own sustainable development. Responsibility Principles of Huatai Securities Respect of Society Satisfaction of Shareholders Pride of Employees Trust of Customers The Company always places its customers at the center and strives to create value for its customers, so as to win their trust with high-quality financial services. The Company values people that are both talented and morally respectable, for whom it has built a systematic and all-round career development platform and fostered an optimistic corporate culture, so as to achieve common growth with its employees. The Company standardizes its corporate governance structure and attaches great importance to risk management and compliant operation, aiming to achieve a stable increase in asset value and ensure sustainable returns to its shareholders. The Company values the harmonious development of the financial system and the society, gives full play to its professional strengths to facilitate social advances. It also actively participates in social welfare promotion and green development, fulfilling its responsibilities as a corporate citizen. 2. ESG Management Structure The Company has integrated ESG factors into its development strategy, set up an ESG Committee under the direct leadership and management of the Board of Directors and senior management of the Company, continued to optimize its ESG management structure, constructed a highly efficient and collaborative ESG management mechanism with the linkage between upper and lower levels, and comprehensively enhanced the systematicness and effectiveness of its ESG management. The Company established a professional ESG management team under the ESG Committee and arranged ESG working officers in relevant departments of the headquarters and in subsidiaries to perform the prescribed duties, thereby forming an ESG management system with clear division, clear responsibilities and efficient operations to ensure the solid promotion and effective implementation of ESG works. ![]() 234 ESG Management Structure of Huatai Securities Board of Directors Senior management ESG Committee (with the CEO serving as the chairman and the Secretary to the Board as the deputy-chairman) Permanent members (persons-in-charge of relevant departments and subsidiaries) Professional members ESG Management Team Persons-in-charge of other relevant departments and subsidiaries and backbone members with expertise knowledge and professional capabilities in ESG Fixed Income Department Research Institute Human Resources Department Risk Management Department Strategy and Development Department Huatai United Securities Huatai Asset Management Huatai International Huatai Purple Gold Investment Supervision le vel • Fully supervise ESG-related af fairs Management le vel • Formulate ESG strategies for the Company • Evaluate the importance of ESG-related affairs which will be taken into consideration in b usiness operations • Supervise the implementation and progress of ESG strategies • Identify ESG-related opportunities and risks Execution le vel • Actual implementation of ESG-related work 3. ESG Management Systems The Company continued to improve its ESG management system and made commitments in terms of safeguarding employees’ rights and interests, improvement of employee ethics, supplier management, data and information protection, and responsible investment, etc. In 2024, with reference to relevant national environmental protection laws and regulations, the Company compiled and issued the Sustainable Investment and Financing Policy for Environment- Sensitive Industries of the Company ( 《公司環境敏感型行業可持續發展投融資 理念》 ), which elaborates the Company’s principles of sustainable investment and financing in environment-sensitive industries, such as agriculture, forestry and mining, and fully reflects the Company’s concrete actions to integrate the ESG concept into its investment and financing business. As of the end of the Reporting Period, the Company had totally issued 9 statements and announcements relating to ESG, for details of which, please refer to the “Sustainability – Statements and Announcements” column in the official website of Huatai Securities. ![]() 235 (II) Building a Modernized Governance System to Ensure Long-term Stable Development In strict compliance with the requirements of relevant laws and regulations such as the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China and the Rules for Corporate Governance of Listed Companies, the Company has established a structure of modern enterprise organization and an operation mechanism with the General Meeting, the Board of Directors, the Supervisory Committee and the senior management. The Rules of Procedures for General Meetings, the Rules of Procedures for the Board of Directors, the Rules of Procedures for the Supervisory Committee and the Terms of Reference of the CEO and the Executive Committee were developed and improved. It follows the principles of independent operation, effective checks and balances, mutual cooperation and coordinated operation of various governance bodies and improves the operation mechanism of the Meetings and the management to improve its corporate governance efficiency. In strict compliance with the Administrative Measures for Information Disclosure of Listed Companies ( 《上市公司信息披露管理辦法》 ) issued by the CSRC and other relevant legal norms and requirements, the Company continuously improved its information disclosure policies and systems. To regulate information disclosure practices, and ensure the legality and compliance of all aspects of its information disclosure processes, the Board of Directors has formulated and improved a series of systems and management methods, such as the Management Measures for Information Disclosure and the System regarding Insider Registration and Management and Confidentiality, so as to disclose all information in a truthful, accurate, complete and timely manner, and to ensure that all shareholders have equal access to relevant information of the Company. By fully implementing the new guideline on strengthening regulation, forestalling risks and promoting the high-quality development of the capital market ( 新 “ 國九條 ”) and the “1+N” policy requirements of the capital market, the Company continuously improves its compliance policies and systems and strictly controls risks across all areas. In 2024, in accordance with the latest laws, regulations, and regulatory requirements, the Company further refined its compliance framework. It developed and improved internal rules and regulations in various domains, including comprehensive compliance management, OTC derivatives, proxy sale of financial products, anti-money laundering, management and control of programmed transactions, and legal proceedings. These efforts ensure that all types of business would be “well operated” with risks “visible and controllable”. The suppliers of Company mainly include those related to IT hardware, IT software, products for project construction, comprehensive materials, products for Internet marketing and promotion, information products and relevant services. The Company strictly complies with the laws and regulations such as the Tendering and Bidding Law of the People’s Republic of China ( 《中華人民共和國招標投標法》 ) and the Government Procurement Law of the People’s Republic of China ( 《中華人民共和國政府採購法》 ), and has formulated rules and policies such as the Procurement Management Measures of Huatai Securities Co., Ltd. and the Code of Conduct on Suppliers of Huatai Securities Co., Ltd., which put forward clear requirements for suppliers in terms of compliance and ethics standards, anti-corruption, environmental protection and employees’ interests. It improves the management policies and systems of the supply chain to regularize and standardize the procurement process. ![]() 236 The Company complied with various requirements on financial marketing publicity and product advertisement stipulated by the Advertisement Law of the People’s Republic of China ( 《中華人民共和國廣告法》 ), the Notice on Further Standardizing Financial Marketing Publicity ( 《關於進一步規範金融營銷宣傳行為的通知》 ), the Measures for Supervision and Administration of the Sales Organizations of Securities Investment Funds in Public Offering ( 《公開募集證券投資基金銷售機構監督管理辦法》 ) and the Interim Regulations on the Administration of Publicity and Referral Materials of Securities Investment Funds in Public Offering ( 《公開募集證券投資基金宣傳推介 材料管理暫行規定》 ), and formulated and implemented the Administrative Measures for Marketing Publicity Activities ( 《規範營銷宣傳管理辦法》 ) and the Administrative Measures for Proxy Sale of Financial Products ( 《金融產品代銷管理辦法》 ). The company consistently adheres to a rigorous and compliant approach, striving to deliver the highest quality and most authentic service experience to its clients. It strictly manages marketing and referral materials and activities from marketing staff, and specifies the standard of publicity materials from preparation, review and use, as well as the special requirements on the code of conduct on marketing and publicity marketing of financial products. The Company has established diversified information channels, including the “Publicity and Information Disclosure” column and the “ZhangLe Fortune Path”. It continues to refine its internal control systems for financial product advertising and marketing management, strengthening internal supervision and risk prevention. (III) Implementing Responsible Finance to Hold the Bottom Line of Risk Prevention and Control The Company strengthened ESG risk management construction, formulated and implemented the evaluation system of ESG due diligence system for clients. The Guidelines for Due Diligence on Clients’ Environmental, Social and Corporate Governance (ESG) (the “Clients’ ESG Due Diligence Guidelines”) set up evaluation indicators and scoring rules with operability on environmental, social and governance aspects, specified the identification, tracking and escalation mechanism for clients’ ESG risks in financing, private equity investment and investment banking businesses, effectively identified, analyzed and managed possible ESG risks of clients and prevented the conversion of clients’ ESG risks into the credit risk of the Company. The Company continued to improve technology on ESG risk and optimize the ESG key functional module of the CAMS system. As a supplement to traditional credit analysis, relevant ESG factors have been incorporated into the CAMS credit analysis framework. Through a combination of big data, natural language processing (NLP) technologies, big models and manual rules, the Company established a multi-dimensional alarming system covering public opinions, announcements and self-constructed special data. The CAMS system has established a linkage mechanism with negative ESG-related public opinions and credit qualification scores. The triggering of ESG alarming signals will affect the entity credit qualification scores and further affect the investment access decision based on scores. ![]() 237 The Company has integrated the ESG concept into its long-term development strategy, and actively promotes the in-depth integration of ESG and the principles of responsible investment to facilitate the orderly development of the Company’s sustainable investment and financing business. Based on the Responsible Investment Statement of Huatai Securities Co., Ltd. (2021 Revision), the Company further optimized the organizational structure and management system of responsible investment. In the process of investment, the Company has included ESG factors in screening on investment targets, analysis of the investment and research team, approval and decision- making of the investment decision-making committee and continuously improved the investment decision-making mechanism with ESG considerations integrated. The Company clearly requires relevant business units to incorporate ESG factors into the full process of group-wide equity investment business, fixed-income investment business, private equity investment and equity investment in alternative investment business. It includes three important factors, namely environmental responsibility, social responsibility and corporate governance, as restrictive indexes, into regular investment decision-making, comprehensively practicing the philosophy of responsible investment. (IV) Innovating Green Finance to Strengthen Layout for Sustainable Development The Company focused on serving the national “dual carbon” goal and made great efforts in green finance by supporting new energy enterprises to go public, innovating green financial services and contributing to the green transformation of the economy. The Company focused on giving full play to its comprehensive service capabilities in investment banking, investment trading, product creation and risk management, actively responding to the green financial needs of real enterprises. The Company continued to facilitate green bond business to support the development of green industrial projects. In 2024, Huatai United Securities served 5 new energy, energy conservation and environmental protection related enterprises to complete equity financing, with the green equity underwriting scale reaching RMB4.048 billion; successfully issued of 59 green bonds, with an underwriting scale of RMB15.698 billion, making Huatai United Securities the vanguard and main force of green bond underwriting and issuance in China. Huatai Asset Management deeply tapped into “Carbon Neutrality” and green asset securitization. In terms of servicing green finance, it has issued a total of 7 products, with a scale of over RMB8.0 billion. The Company actively participated in the establishment and development of national and regional carbon markets, building carbon financial products and trading service systems for both domestic and international markets, to enhance carbon market liquidity and efficiency and strongly support the green and high-quality development of the real economy. In 2024, the Company engaged in trading of carbon emission allowances and China Certified Emission Reduction (CCER) in regional carbon markets in Guangdong, Shanghai, Beijing, Shenzhen, Hubei and etc. In 2024, the Company was awarded the 2023 “Carbon Finance Practice Award” by Shanghai Environment and Energy Exchange and the “Market Pioneer Award” by Hubei Carbon Emission Exchange, evidencing the Company’s positive contribution to the expansion of carbon finance business as well as the deepening and improvement of China’s carbon market. ![]() 238 (V) Holding Firm to Product Responsibility and Enhancing Quality Assurance The Company enhanced its innovation-driven development, strengthened the application of digital technology in financial area, promoted the organic integration of business philosophy and digital transformation, and improved the digital transformation measurement system. The Company placed technological empowerment as its core competitiveness. Based on the strategy of “Digital China”, the Company firmly followed the path of platform development, deepened the supportive role of technology to business development, actively embraced cutting-edge technology, and continuously released the integrated value of “business + technology”. In 2024, the Company’s “CAMS Intelligent Credit Investment and Research Platform leveraging Big Data (CAMS 大數據智能信用投研平台 )” and “Jianfu ( 簡富 )”, an investment banking digital due diligence workstation, were both awarded the Second Prize in the 2023 Financial Technology Development Award by the People’s Bank of China. Adhering to the customer-oriented approach, the Company deepened the “two-pronged” ( 雙輪驅動 ) strategy, promoted the organizational upgrading of “One Customer” internally and “One Huatai” externally, and built up a sound customer service system with full business chain. Meanwhile, the Company actively implemented relevant requirements of the regulatory authorities for investor protection and investor education, innovated the operation model of investor education services, and continuously carried out investor education content and event promotion with classified and stratified refined services, so as to establish an investor education service system with wide coverage and strong support. In 2024, Huatai Securities Nanjing National Investor Education Base was awarded “Excellent” rating by the CSRC for the year 2023-2024. The Company’s investor education services received an A grade in the investor education evaluation assessment of brokerage firms organized by the SAC, the SSE, the SZSE and the NEEQ. The Company has always attached great importance to data information security and customer privacy protection, strictly abided by the Data Security Law of the People’s Republic of China ( 《中華人民共和國數據安全法》 ), the Personal Information Protection Law of the People’s Republic of China ( 《中華人民共和國個人信息保護法》 ), the Measures for the Administration of Cybersecurity and Information Security in the Securities and Futures Industries ( 《證券期貨業網絡和信息安全管理辦法》 ) and other laws, regulations and regulatory requirements, and issued the Statements of Huatai Securities Co., Ltd. on Data and Information Protection ( 《 華泰證券股份有限公司 數 據及信息保護聲明》 ). The Company has built a more robust information security and privacy protection mechanism by strengthening data governance, privacy protection and cybersecurity prevention and control, and transaction security protection, etc. ![]() 239 (VI) Empowering the Growth of Employees to Jointly Construct a Community of Shared Future The Company strictly abides by relevant national laws and regulations such as the Labor Law of the People’s Republic of China ( 《中華人民共和國勞動法》 ), the Labor Contract Law of the People’s Republic of China ( 《中華人民共和國勞動合同法》 ), the Employment Promotion Law of the People’s Republic of China ( 《中華人民共和國就業 促進法》 ) and other laws and regulations, provides equal employment opportunities to employees, resolutely opposes employment discrimination, and ensures that employees’ employment and career development are not affected by any factors such as race, faith, gender, religion, nationality, ethnicity, age, marital status and social status. The Company focuses on talent development strategy, adheres to the recruitment principles of openness and equality, scientific selection, and moral integrity, and introduces diversified talents through campus recruitment, social recruitment, internal recruitment, and other flexible and diverse recruitment methods to enhance the depth of talents. The Company attaches great importance to the growth and development of employees. It has established a cultivation and development system covering the whole life cycle of employee growth and launched the cultivation programs of “Seaworthiness Program – Sailing Program – Voyage Program – Pilot Program” matching the corresponding development system. It also had a growth path covering “newcomer – business backbone – composite elite – management generalist” to meet the development needs of talents at different stages. The Company continued to build the HTalent talent development system with the ability of cultivating international investment bankers, adding value to customers and digital transformation, strengthened the Group’s integrated management both at home and abroad, and comprehensively upgraded employee training system. Based on the “HTalent Talent Training and Development System”, a talent training system which can cover the entire career path of an employee across the whole business chain, the Company integrates the training resources for the professional competence of each business both at home and abroad, and provides employees with an internal talent development system and growth path that is consistent with the Group’s concepts and synergistic with its methodology, empowering the growth of whole career general capacity of employees. ![]() 240 (VII) Fulfilling Social Responsibilities and Deepening Engagement in Public Welfare Initiatives 1. Assisting in ecological protection The Company actively responds to the requirements of the China National Biodiversity Conservation Strategy and Action Plan (2023-2030) ( 《中國生物多樣 性保護戰略與行動計劃（ 2023-2030 年）》 ) issued by the Ministry of Ecology and Environment, taking the initiative to serve the national strategy of “Comprehensive Protection of Yangtze River” and the policy initiative of deepening “Collaboration between the Eastern and the Western Regions”. Taking advantage of the “One Commonweal Heart of Huatai One Yangtze River” ecological environment protection program, it carried out work in relation to biodiversity conservation, committed to protecting the biodiversity of the Yangtze River Basin. Over the past six years, the project has extended its main coverage from the source of the Yangtze River to the middle and lower reaches of the river, and its content has been extended from key species protection and community development to a wider range of areas such as youth talent development and public education. In 2022, the “Independent Commitments by Non-State Actors” of the Company with the theme of “One Yangtze River One World” was officially included in the database of the United Nations Convention on Biological Diversity (CBD) “Action Agenda”. Over the past two years, the Company has actively joined hands with various parties to carry out biodiversity protection, responded to the “Kunming- Montreal Global Biodiversity Framework” ( 《昆明 － 蒙特利爾全球生物多樣性 框架》 ) reached at the 15th meeting of the UN Conference of the Parties to the Convention on Biological Diversity (CBD COP15) and led employees, customers, partners, the public and other groups to widely understand and participate in the protection of biodiversity to facilitate the progress of biodiversity as a main stream. 2. Promoting educational equity Since its establishment in 2016, the “One Commonweal Heart of Huatai One Tomorrow” rural education program of the Company has aimed to drive the comprehensive development of children in need and promote educational equity, covering rural schools and children in need in Qinghai, Yunnan, Hubei, Anhui, Jiangsu and other places. The program has been dedicated to improving the mental health and overall quality of left-behind children, mobilizing the efforts of various parties to improve the living conditions of children in need, through quality education, family care, volunteer services and other diversified public welfare models, helping healthy growth of left-behind children. As of the end of 2024, the program has benefited 146,116 children, 13,990 teachers, and has brought in 165,702 donations amounting to RMB3.2720 million for assisting a total of 1,355 children in financial difficulties. ![]() 241 (VIII) Responding to Climate Change and Building a Robust Management System The Company has been responding to the challenges and opportunities brought by climate change and has been attaching great importance to the management of climate risks. In 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd., with reference to the requirements under the Implementation Guidance for Climate Disclosures under ESG Framework issued by HKEX and the International Financial Reporting Sustainability Disclosure Standards 2 – Climate-related Disclosures (IFRS S2) issued by the International Sustainability Standards Board (ISSB), and the recommendation framework of the former Task Force on Climate-related Financial Disclosure (TCFD), the Company identified, analyzed and took responding measures for climate risks and opportunities related to its operations, including climate-related risk management, strategy, risk management, metrics and targets and potential financial impact analysis, so as to ensure the effective and orderly implementation of climate- related actions. Summary of climate-related disclosures by TCFD Governance • The Board of Directors of the Company is responsible for comprehensively supervising climate risk ✓ Taking in charge of the overall supervision of ESG matters including climate change topics, including supervising, directing and reviewing climate change- related management approaches, policies, strategies, objectives, action plans, risks and opportunities and other major decisions and their implementation; ✓ Assuming overall responsibility for the Company’s climate risk management, regularly reviewing climate risk management strategies, objectives, risks and opportunities, action plans and other major decisions and paying particular attention to resolutions on climate change. P15-18, P63- 69 of 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd. ![]() 242 • The ESG Committee is the decision-making and deliberative body for ESG work ✓ Responsible for formulating and reviewing strategies, goals and other major decisions related to environmental protection, climate change and other sustainable development; ✓ Responsible for determining the importance of climate change issues, and identifying risks and opportunities of climate; ✓ Responsible for the construction and management of climate-related mechanism, and coordination of the overall implementation of climate change strategies. • The ESG management team is accountable to the ESG Committee and responsible for the implementation and promotion of environmental and climate change-related policies ✓ The implementation of climate risk management strategy, statistics of energy and resource consumption, and the accounting of greenhouse gas emissions. • All business departments and subsidiaries jointly promote the implementation of climate change actions ✓ Explicitly responsible for the specific implementation of the work related to climate change issues, so as to ensure the solid progress and effective implementation of the work on climate change actions. • The Company exercises the voting right externally and states its concerns about resolutions on climate change, including but not limited to carbon neutrality goals, actions on carbon emission reduction and response to climate- related substantial and transformation risks ✓ Approving relevant resolutions in principle and incorporating relevant regulatory policies on climate change, relevant systems of the Company on climate change, the impacts of climate change risks on the operation and finance of the Company as well as the measures of the Company on identifying and responding to risks into consideration. ![]() 243 Strategy • Carrying out the identification, evaluation and analysis of climate-related risks and opportunities • Determining the climate-related risks and opportunities which are material for the Company’s business and operations • Gradually improving the top-level design for managing climate risks and opportunities P63-69 of 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd. Risk management • Based on its business and strategy, and combined with expert opinions, the Company evaluates climate-related risks and opportunities. Moreover, the Company constructs a climate-related risk and opportunity matrix based on the assessment results and identifies the materiality of the risks and opportunities based on their probability and degree of impact, while also improves the mechanism for climate- related risks and opportunities on an on-going basis P63-69 of 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd. Metrics and targets • As a financial enterprise, the Company consumes energy and discharges carbon mainly for daily office work in the course of operations, involving energy such as electricity, natural gas, petrol used for company owned vehicles and diesel used for diesel generators ✓ Implementing various energy conservation and emission reduction measures such as adopting renewable energy sources, promoting recycling, reducing paper consumption and advocating green and low-carbon travel, so as to reduce energy consumption and carbon emissions. • The Company conducts statistics and analysis of total carbon emissions and energy consumption and intensity to assess the management on climate change issue and accordingly formulate improvement scheme to promote energy conservation and emission reduction ✓ With taking 2021 as the base year, the Company has set carbon emission and energy management targets, and will track and report on the progress of such targets on an annual basis. P63-69, P70-73, P121-123 of 2024 Corporate Social Responsibility Report of Huatai Securities Co., Ltd. ![]() 244 III. DETAILS ON CONSOLIDATION AND EXPANSION OF THE RESULTS OF POVERTY ALLEVIATION, RURAL REVITALIZATION AND OTHER WORK Currency: RMB Poverty alleviation and rural revitalization project Number/Content Description Total investment (Ten Thousand Yuan) 1,297.98 Total investment in poverty alleviation and rural revitalization projects Of which: Funds (Ten Thousand Yuan) 1,297.98 Total investment in poverty alleviation and rural revitalization projects Material equivalent (Ten Thousand Yuan) – – Number of persons benefited (people) 160,106 Accumulative number of beneficiaries under rural education programs such as “One Commonweal Heart of Huatai One Tomorrow” Forms of poverty alleviation (such as industrial alleviation, employment alleviation, education alleviation, etc.) Industrial alleviation, employment alleviation, education alleviation, etc. Supporting industrial development at the support targets, supporting the construction of factories for local agriculture, establishing agricultural risk coverage, and continuously serving rural livelihood foundation; continuously carrying out the “One Tomorrow” rural education program; implementing a consumption assistance program, and proactively purchasing consumption assistance products of the support targets ![]() 245 The Company takes serving rural revitalization as a major development task and a major people’s livelihood task, and fully integrates the Group’s advantageous resources to orderly advance the five key areas of rural revitalization, including industry, talent, culture, ecology and organization, in order to serve the national goal of building a strong agricultural country. In terms of organizational coverage, the Company established a robust organizational mechanism for rural revitalization, where major leaders personally carried on research, subordinate leaders gave specific guidance, and specially-assigned personnel of functional departments took charge. The Company insisted on the selection of young backbone staff with good political quality, strong working ability, commitment and responsibility as the assistance team members and serving as the “first secretary” in the village, contributing strong momentum to rural development. In terms of consumption assistance, the Company and its subsidiaries actively purchased and sold agricultural and sideline products from poverty-stricken areas and other underdeveloped areas, with a cumulative purchase amount of RMB9,231,400. In addition, the Company continuously deepened the construction of long- term support projects in Nangqian County, Yushu Tibetan Autonomous Prefecture, Qinghai Province, provided substantial support for the development of healthcare industry in Tibetan areas, renovated and upgraded the dialysis ward of Nangqian County People’s Hospital, and built Children’s Homes at local schools, to provide material aid and nature education support for children in difficulty. In six places of five provinces, including Suqian in Jiangsu Province, Jinzhai and Yuexi in Anhui Province, Enshi in Hubei Province, Lancang in Yunnan Province and Yushu in Qinghai Province, the Company carried out the “One Tomorrow” rural education program in a deep- going way, conducted voluntary services and public welfare activities for visiting children in need. The program provides targeted voluntary services for left-behind children and teachers, in conjunction with the characteristics and differentiated needs of various schools. By integrating resources from multiple parties, the program invites experts in psychology, education, sociology, intangible culture and ecology to contribute professional strengths to rural education. In addition, the Company set up dream centers in schools that meet the hardware and software conditions to help the growth of left-behind children. Since 2018, the Company has launched seven consecutive sponsorship programs for children in need, raising funds for children in schools sponsored by the “One Commonweal Heart of Huatai One Tomorrow” rural education program in Yushu of Qinghai, Enshi of Hubei, Jinzhai and Yuexi of Anhui, Suqian of Jiangsu, and other places. ![]() 246 MAJOR EVENTS I. PERFORMANCE OF UNDERTAKINGS Undertakings of de facto controllers, Shareholders, related parties, purchasers of the Company, the Company and other undertaking-related parties made or remained effective during the Reporting Period Background of undertaking Type of undertaking Undertaking party Content of undertaking Date of undertaking Any deadline for performance or not Duration of undertaking Strictly performed in a timely manner or not Other undertakings made to minority Shareholders of the Company To solve horizontal competition Guoxin Group Guoxin Group and its subsidiaries or associated companies shall not engage in or conduct any business which may compete with the primary business of Huatai Securities in any way (including but not limited to self-operated, joint-ventured or associated) at any time in the future (except for Jintai Futures Co., Ltd.). For any opportunities to conduct, engage in or invest in any business that may compete with the business of Huatai Securities available to Guoxin Group and its subsidiaries or associated companies, Guoxin Group will give such opportunities to Huatai Securities (except for Jintai Futures Co., Ltd.). June 27, 2014 No Long term Yes II. THERE WAS NO NON-OPERATING MISAPPROPRIATION OF FUNDS OF THE COMPANY BY ANY CONTROLLING SHAREHOLDERS AND OTHER RELATED PARTIES DURING THE REPORTING PERIOD ![]() 247 III. THE COMPANY HAD NO GUARANTEES IN VIOLATION OF REGULATIONS DURING THE REPORTING PERIOD IV. STANDARD UNQUALIFIED OPINION AUDIT REPORT WAS PREPARED BY THE ACCOUNTING FIRM OF THE COMPANY V. ANALYSIS AND EXPLANATION FROM THE COMPANY ON THE REASONS AND IMPACT OF THE CHANGE OF ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES OR CORRECTION OF MAJOR ACCOUNTING ERRORS (I) Analysis and explanation from the Company on the reasons and impact of the change of accounting policies and accounting estimates For the change of accounting policies and accounting estimates during the Reporting Period, please refer to “Change of Significant Accounting Policies and Accounting Estimates” under “Significant Accounting Policies and Accounting Estimates” under “Financial Report” in this report. (II) The Company made no correction of major accounting errors ![]() 248 VI. APPOINTMENT AND REMOVAL OF ACCOUNTING FIRM Unit: Ten Thousand Yuan Currency: RMB Currently employed Name of the domestic accounting firm Deloitte Touche Tohmatsu Certified Public Accountants LLP Remuneration of the domestic accounting firm 318 Audit duration of the domestic accounting firm 3 years Name of certified public accountants of the domestic accounting firm Hu Xiaojun, Han Jian Continued duration of auditing services by certified public accountants of the domestic accounting firm 3 years Name of the overseas accounting firm Deloitte Touche Tohmatsu Remuneration of the overseas accounting firm 138 Audit duration of the overseas accounting firm 3 years Name Remuneration Accounting firm for the auditing of internal controls Deloitte Touche Tohmatsu Certified Public Accountants LLP Please refer to the description below this table Description of appointment and removal of accounting firm During the Report Period, upon consideration and approval at the Company’s 2024 Annual General Meeting, the Company continued employing Deloitte Touche Tohmatsu Certified Public Accountants LLP as the audit service institute of the Company and its holding subsidiaries for the 2024 annual financial statements and internal control to issue A Share audit report, internal control audit report and GDR audit report; and employed Deloitte Touche Tohmatsu as the audit service institute for the Company’s H Shares to issue H Share audit report. The audit service fee was capped at RMB4.60 million (of which the internal control audit fee was RMB0.40 million). VII. THE COMPANY HAD NO RISKS OF SUSPENSION OF LISTING, TERMINATION OF LISTING, BANKRUPTCY AND RESTRUCTURING ![]() 249 VIII. MATERIAL LITIGATION AND ARBITRATION During the Reporting Period, there were no material litigation and arbitration of the Company with amount involving more than RMB10 million and accounting for more than 10% of the absolute value of the audited net assets of the Company for the latest period, which are required to be disclosed by the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. As of the end of the Reporting Period, litigations and arbitrations of the Company that had been disclosed and had progress are as follows: 1. Securities investment fund transaction dispute among the Company and Zhaoxin Company, etc. In March 2024, the Company received a lawsuit document from Shenzhen Intermediate People’s Court. According to the lawsuit, Zhejiang Zhaoxin Investment Management Co. Ltd. ( 浙江兆信投資管理有限公司 ) (“Zhaoxin Company”) suffered losses from its investment with a private fund product managed by it as the manager in another private fund product. Zhaoxin Company filed a lawsuit in court against the managers, custodians and other relevant parties of the relevant underlying funds, demanding each of the defendants to jointly compensate for its losses totaling RMB623,324,129.95. At present, Shenzhen Intermediate People’s Court has accepted the case and the Company has engaged a lawyer to represent it to respond to the lawsuit. In light of the jurisdictional objection filed by the defendants, on July 1, 2024, Shenzhen Intermediate People’s Court made the first-instance ruling that the case shall be transferred to the jurisdiction of Chengdu-Chongqing Financial Court. Zhaoxin Company disagreed with the ruling and filed an appeal. On October 22, 2024, the High People’s Court of Guangdong Province made the second-instance ruling of upholding the first-instance ruling that the case shall be transferred to the jurisdiction of Chengdu-Chongqing Financial Court. 2. Tort liability disputes among the Company and Zhejin Company, etc. In June 2024, the Company received a lawsuit document from Hangzhou Intermediate People’s Court. According to the lawsuit, Ningbo Zhejin Steel Co., Ltd. ( 寧波浙金鋼 材有限公司 ) (“Zhejin Company”) suffered losses from its investment in a trust plan, thus Zhejin Company sued to the court and demanded the product service agency, fund manager and custodians of the underlying fund invested by the trust plan to jointly compensate for its loss of the principal, interest loss and the attorney’s fee, etc., totaling RMB100,086,666.67. The Company is one of the product custodians of the underlying fund. At present, Hangzhou Intermediate People’s Court has accepted the case. The Company has engaged a lawyer to represent it to respond to the lawsuit. In light of the jurisdictional objection filed by the defendants, on September 24, 2024, Hangzhou Intermediate People’s Court made the first-instance ruling that the case shall be transferred to the jurisdiction of Ningbo Intermediate People’s Court. On December 9, 2024, the High People’s Court of Zhejiang Province made the second-instance ruling of upholding the first-instance ruling that the case shall be transferred to the jurisdiction of Ningbo Intermediate People’s Court. ![]() 250 3. Performance dispute between Yili Fund, a fund under Huatai Purple Gold Investment, and Der Group and its de facto controller, Ru Jiyong Yili Su Xin Investment Fund Partnership (Limited Partnership) ( 伊犁蘇新投資基金合 夥企業 ( 有限合夥 )) (“Yili Fund”), a fund under Huatai Purple Gold Investment, filed an application for arbitration with the Nanjing Arbitration Commission in June 2020, requesting Ru Jiyong, the de facto controller of Der Group Co. Ltd. ( 德爾集團有限公 司 ) (“Der Group”) to fulfil his obligation to repurchase the equity interest in Henan Yiteng New Energy Technology Co., Ltd. ( 河南義騰新能源科技有限公司 ) (“Henan Yiteng”) held by Yili Fund pursuant to the agreement entered into between the parties in relation to the investment in Henan Yiteng. The Nanjing Arbitration Commission held hearings on August 19, 2022, February 24, 2023 and October 7, 2023. In light of the bankruptcy and the cancellation of industry and commerce registration of Henan Yiteng, Yili Fund filed a new application for arbitration with the Nanjing Arbitration Commission on February 7, 2024, demanding Ru Jiyong to undertake the corresponding payment obligations. On February 20, 2024, the Nanjing Arbitration Commission accepted the aforesaid arbitration application from Yili Fund. The Nanjing Arbitration Commission issued a decision letter on June 24, 2024, stating that the arbitration proceedings in this case were suspended due to Ru Jiyong’s claim for confirmation of the validity of the arbitration agreement, which had been accepted by Suzhou Intermediate People’s Court and no ruling had been made yet. On September 24, 2024, Suzhou Intermediate People’s Court made a ruling of approving the withdrawal of the claim by Ru Jiyong. Therefore, on September 29, 2024, the Nanjing Arbitration Commission ruled to resume the arbitration proceedings. On November 8, 2024, the case was heard before the Nanjing Arbitration Commission. On February 8, 2025, a ruling from the Nanjing Arbitration Commission was received, which supported all requests of Yili Fund. On November 11, 2022, Yili Fund filed a lawsuit against Der Group with the People’s Court of Jianye District, Nanjing, requesting Der Group to be liable for the losses incurred by Yili Fund resulting from the invalid guarantee of pledge of shares of Der Future (with damages of RMB275,966,101, of which, the loss of investment principal amounted to RMB142,372,881 and the loss of interest amounted to RMB133,593,220). On November 28, 2022, the People’s Court of Jianye District, Nanjing froze 54,919,622 shares of Der Future held by Der Group upon the application of Yili Fund. The case was then transferred to Ili Kazakh Autonomous Prefecture Branch of the High People’s Court of Xinjiang Uygur Autonomous Region (the “Ili Court”), and the Ili Court held a hearing on September 8, 2023 and issued a civil ruling on October 18, 2023, holding that the case had to be based on the outcome of the Nanjing Arbitration Case, and ordered a stay of the litigation accordingly. Due to the requirements on time limits for case trial, Yili Fund filed an application for withdrawal of the case with the Ili Court, which issued a ruling agreeing to the withdrawal of the case on May 21, 2024. At the same time, Yili Fund applied to the Ili Court for pre-litigation preservation and resubmitted its application to file the case. On September 9, 2024, the Ili Court made a ruling, rejecting the objection application filed against the jurisdiction of the case by Der Group Co. Ltd., and Der Group filed an appeal against the ruling. On November 7, 2024, the Xinjiang High Court made a ruling, rejecting the appeal against the jurisdictional objection filed by Der Group. ![]() 251 4. Performance dispute between Yili Fund, a fund under Huatai Purple Gold Investment, and Su Yashuai The project of J-Tech CNC Technology Co., Ltd. ( 嘉泰數控科技股份有限公司 ) (“J-Tech CNC”) invested by Yili Fund, a fund under Huatai Purple Gold Investment, has triggered the repurchase and cash compensation obligations of Su Yashuai, the de facto controller of J-Tech CNC, due to the failure to fulfill the performance commitments and listing targets as stipulated in the investment agreement, which has resulted in a performance dispute. In October 2023, Yili Fund filed an application for litigation to the People’s Court of Jianye District, Nanjing. The People’s Court of Jianye District has accepted the case and commenced the trial on January 15, 2024. On April 18, 2024, the People’s Court of Jianye District issued a civil judgment in favor of Yili Fund’s claim for the consideration for share repurchase, which consisted of the principal amount of RMB80,059,100 as well as the repurchase premium (calculated at an interest rate of 10% per annum until the date of actual payment of the consideration for share repurchase); and adjusted the liquidated damages claimed by us, which was calculated on a base amount of RMB80,059,100 and at the one-year Loan Prime Rate standard published by the National Interbank Funding Center from September 13, 2022 until the date of actual settlement. By the expiration of the appeal period, the opponent had not filed an application for appeal and the first instance judgment had become effective. Yili Fund submitted the filing materials with the Executive Bureau of People’s Court of Jianye District on June 12, 2024 for compulsory execution, and the People’s Court of Jianye District filed a case in August 2024; On December 30, 2024, Yili Fund received the award of termination of execution served by the People’s Court of Jianye District. 5. Bill dispute of Huafu Xiamen Bank No. 1 Targeted Assets Management Plan of Huatai Securities ( 華泰證券華福廈門銀行 1 號定向資產管理計劃 ) In October 2016 and March 2017, Xiamen Bank Co., Ltd., the client of Huafu Xiamen Bank No. 1 Targeted Assets Management Plan of Huatai Securities (hereinafter referred to as “Huafu Xiamen Bank No. 1 ( 華福廈門銀行 1 號 )”), filed a lawsuit of contract dispute at Fujian Higher People’s Court for the bill dispute of Huafu Xiamen Bank No. 1, with Shenzhen Branch of Bank of Ningbo Co., Ltd. as the defendant. The total amount of the underlying bill was RMB950 million. Huatai Asset Management participated in the lawsuit as a third party. On June 26, 2018, Fujian Higher People’s Court made the first-instance judgment in favor of Xiamen Bank’s main litigation claim, and on December 12, 2020, the Supreme People’s Court made the second-instance judgment to reject the appeal and upheld the original judgment. After the second- instance judgment became effective, Shenzhen Branch of Bank of Ningbo fulfilled the judgment payment to Xiamen Bank. In 2023, the applicant, Shenzhen Branch of Bank of Ningbo, filed an application for retrial on the grounds that there were new evidence and facts in the case which were sufficient to overturn the second-instance judgment, which was accepted by the Supreme People’s Court on July 11, 2023. On December 9, 2024, the Supreme Court issued Civil Rulings of (2024) Zui Gao Fa Min Zai No. 272 and No. 273, ruling to revoke Civil Judgements of (2016) Min Min Chu No. 108 and (2017) Min Min Chu No. 31 issued by Fujian Higher People’s Court and Civil Judgements of (2019) Zui Gao Fa Min Zhong No. 190 and (2019) Zui Gao Fa Min Zhong No. 191 issued by the Supreme People’s Court, and remanded the case to Fujian Higher People’s Court for a retrial. ![]() 252 IX. SUSPECTED VIOLATIONS OF LAWS AND REGULATIONS BY, PUNISHMENT ON AND RECTIFICATION OF THE COMPANY AND ITS DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT, CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS 1. In March 2024, Hubei Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd., Liu Wei and Zhang Zhanpei ([2024] No. 14) ( 《關於對華泰聯合證券有限責任公司、劉偉、張 展培採取出具警示函措施的決定》 ([2024]14 號 )) to Huatai United Securities, pointing out that Huatai United Securities failed to carry out effective supervision over the financial accounting and funds raising of Hubei Huaqiang High-tech Co., Ltd. ( 湖北 華強科技股份有限公司 ) (“Huaqiang High-tech”), and that the relevant descriptions in the report issued were not tally with the facts, and failed to reflect the non-compliance issues of Huaqiang High-tech in a true and accurate manner. Hubei Securities Regulatory Bureau took administrative regulatory measures by issuing a warning letter to Huatai United Securities and the relevant personnel in accordance with Article 64 of the Administrative Measures for the Sponsorship Business of the Issuance and Listing of Securities ( 《證券發行上市保薦業務管理辦法》 ). Huatai United Securities has pursued corresponding internal accountability in accordance with the corporate system, and requested the responsible departments to conduct a comprehensive review on the continuous supervision and workflow of the sponsorship business projects, to perform their duties conscientiously and diligently, and to prevent the recurrence of similar incidents. 2. In April 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Ordering Huatai Securities Co., Ltd. to Take Rectification Regulatory Measures ([2024] No. 74) ( 《關於對 華泰證券股份有限公司 採取責令改正監管措施的決定》 ([2024]74 號 )), pointing out that the Company failed to put in place compliance and risk control gatekeeping for part of its proprietary business, failed to fulfill its obligations of managing and supervising the appropriateness of some of its clients, failed to manage the qualifications of its practitioners and failed to improve the internal control over its follow-on investment business. The Company attached great importance to the above issues and has organised relevant departments to effectively carry out rectifications and regulations around various aspects such as regimes, processes and systems. ![]() 253 3. In April 2024, Shenzhen Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to the Securities Branch of Huatai Securities Co., Ltd. in Shennan Avenue, Shenzhen ([2024] No. 77) ( 《關於對 華泰證券股份有限公司 深圳深南大道證券營業部採取出具警示函措施的決定》 ([2024]77 號 )) to the Securities Branch of the Company in Shennan Avenue, Shenzhen, pointing out that the Securities Branch in Shennan Avenue, Shenzhen cooperated with external organisations to hold a customer training and exchange meeting in 2019, which involved explanations on the securities market trends and other related contents, yet the Branch failed to conduct compliance review on the activities, agenda, contents and qualifications of the lecturers. The Securities Branch in Shennan Avenue, Shenzhen had carried out rectifications in respect of the issues pointed out in the letter, and the Company had also further strengthened the management of branches by way of assessment and accountability. 4. In April 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Ordering Huatai Securities Co., Ltd. to Take Rectification Regulatory Measures ([2024] No. 85) ( 《關於對 華泰證券股份有限公司 採取責令改正監管措施的決定》 ([2024]85 號 )) to the Company, pointing out that the Company failed to manage the trading behaviors of its clients in carrying out its margin financing and securities lending business; and failed to continuously supervise its clients to standardise their issuance behaviors in the course of carrying out the business of non-financial corporate debt financing instruments in the inter-bank bond market. In response to the above-mentioned issues, the Company has organised relevant departments and branches to actively carry out rectifications, and further optimised the governing mechanisms in relevant areas. 5. In May 2024, Yunnan Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to Huatai Securities Co., Ltd., Yunnan Branch (Decisions on Administrative Regulatory Measures [2024] No. 7) ( 《關於對 華泰證券 股份有限公司 雲南分公司採取出具警示函措施的決定》 ( 行政監管措施決定書 [2024]7 號 )) to Yunnan Branch of the Company, pointing out that Yunnan Branch of the Company failed to deal with investor complaints and disputes in a timely and proper manner. Yunnan Branch had dealt with the relevant investor complaints and disputes in a proper manner, and the Company had continuously optimised the complaint and dispute prevention and resolution mechanisms. ![]() 254 6. In May 2024, Shanghai Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to Huatai Securities (Shanghai) Assets Management Co., Ltd. (Hu Zheng Jian Jue [2024] No. 213) ( 《關於對華泰證券 ( 上海 ) 資產管理有限公司採取出具警示函措施的決定》 ( 滬證監決 [2024]213 號 )) to Huatai Asset Management, pointing out that Huatai Asset Management had the following deficiencies: firstly, the funds invested for relief purposes under the asset management plan for supporting the development of private enterprises did not reach the prescribed proportion, reflecting a lack of prudence and diligence in the Company’s operations; secondly, the due diligence on counterparties was inadequate, and there was a failure to conduct prudent investigation on counterparties in the process of handling the stock pledged repurchase business for individual clients. Huatai Asset Management attached great importance to and sincerely accepted the issues pointed out in the above- mentioned warning letter, formulated a clear rectification plan and completed the rectifications. Huatai Asset Management would take this as an opportunity to further promote the robust development of various businesses in a prudent and diligent manner. 7. In June 2024, the Shanghai Stock Exchange issued the Decision on Issuing Regulatory Warning to Huatai United Securities Co., Ltd., Sponsor Representatives Xia Junfeng and Wang Yi ([2024] No.34) ( 《關於對華泰聯合證券有限責任公司、保薦代表人 夏俊峰、汪怡予以監管警示的決定》 ([2024]34 號 )) to Huatai United Securities, pointing out that Huatai United Securities failed to fulfill the obligation of prudent verification in respect of the flow of funds to overlapping supplier by the affiliated company of Zhejiang Arcana Power Sports Tech Co., Ltd. ( 浙江力玄運動科技股份 有限公司 ), and failed to prudently assess the income-related verification opinions of the reporting accountant and other circumstances. The Shanghai Stock Exchange, in accordance with the Rules Governing the Review of Issuance and Listing of Stocks on the Shanghai Stock Exchange ( 《上海證券交易所股票發行上市審核規則》 ) and other relevant provisions, took the self-disciplinary measures of regulatory warning against Huatai United Securities and the relevant personnel. Huatai United Securities pursued corresponding internal accountability in accordance with the corporate system and required the responsible departments to conduct comprehensive inspections on the project management, risk identification and control and other matters of sponsorship business, so as to further improve the adequacy and prudence of due diligence. ![]() 255 8. In October 2024, Shenzhen Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd. ([2024] No. 203) ( 《關於對華泰聯合證券有限責任公司採取出具警示函措施的決定》 ([2024] 203 號 )) to Huatai United Securities, pointing out that Huatai United Securities failed to conduct adequate due diligence for certain bonds underwritten by it, failed to strictly fulfill continuous supervision obligations, failed to conduct businesses while adhering to integrity and other issues. Shenzhen Securities Regulatory Bureau took administrative regulatory measures by issuing a warning letter to Huatai United Securities in accordance with the Measures for the Administration of Information Disclosure Concerning Corporate Credit Bonds ( 《公司信用類債券信息披露管理辦 法》 ). Huatai United Securities has conducted a serious review based on the above issues, further strengthened the adequacy of due diligence and information disclosure, rigorously fulfilled its ongoing supervision obligations, and clarified relevant cost- bearing requirements, to prevent recurrence of similar issues. 9. In November 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Ordering Huatai Securities Co., Ltd. Zhenjiang Branch to Take Rectification Regulatory Measures ([2024] No. 218) ( 《關於對 華泰證券股份有限公司 鎮江分公司採取責令改 正監管措施的決定》 ([2024]218 號 )) to the former Zhenjiang Branch of the Company, pointing out that staff of such branch and its subordinate business departments had illegally sold financial products. The Company has organised relevant branches to conduct self-inspection and rectification, and further enhanced standardised management of financial product sales processes. 10. In November 2024, Jiangsu Securities Regulatory Bureau issued the Decision on Taking Regulatory Measures by Issuing a Warning Letter to Huatai Securities Co., Ltd. ([2024] No. 230) ( 《關於對 華泰證券股份有限公司 採取出具警示函監管措施的決 定》 ([2024]230 號 )) to the Company, pointing out that the Company had the following deficiencies: firstly, the Company conducted OTC options transactions with non- professional institutional investors and failed to effectively monitor the percentage of purchase of OTC options for involved products in the relevant process; secondly, the Company failed to implement adequate compliance management on certain branches, resulting in situations of conducting business in a non-compliant manner, such as staff provided test answers to clients, conducted securities transactions on clients’ behalf, and assisted non-professional institutional investors in conducting OTC options transactions. The Company has organised relevant departments and branches to conduct self-inspection and rectification, and improved standardised operations in relevant areas through optimizing systems and mechanisms as well as strengthening promotion, guidance and training. ![]() 256 11. In November 2024, the Shanghai Stock Exchange issued the Decision on Issuing Regulatory Warning to Huatai United Securities Co., Ltd. and Sponsor Representatives Liu Lu, Chen Weiya and Huang Fei ([2024] No. 63) ( 《關於對華泰聯合證券有限責任公 司和保薦代表人劉鷺、陳維亞、黃飛予以監管警示的決定》 ([2024] 63 號 )) to Huatai United Securities, pointing out that Huatai United Securities failed to perform sufficient verification on the internal controls over R&D investments and sales personnel’s capital flows of the issuer during the sponsorship work for Nanjing Shineking Biotech Co., Ltd. The Shanghai Stock Exchange, in accordance with the Rules Governing the Review of Issuance and Listing of Stocks on the Shanghai Stock Exchange ( 《上海證券交易所股票 發行上市審核規則》 ) and other relevant provisions, took the self-disciplinary measures of regulatory warning against Huatai United Securities and the relevant personnel. Huatai United Securities pursued corresponding internal accountability in accordance with the corporate system and required the responsible departments to conduct a comprehensive review on the project management, working processes and other matters of the sponsorship business, so as to continuously improve business capabilities and work quality. 12. In December 2024, Zhejiang Securities Regulatory Bureau issued the Decision on Taking Measures by Issuing a Warning Letter to Huatai United Securities Co., Ltd. ([2024] No. 300) ( 《關於對華泰聯合證券有限責任公司採取出具警示函措施的決定》 ([2024]300 號 )) to Huatai United Securities. The aforesaid warning letter determined that Huatai United Securities failed to effectively supervise the management and use of issuers’ accounts designated for raised funds and failed to diligently and conscientiously perform its duties of continuously supervising the raised funds in the course of entrusted management of issuers of relevant corporate bonds. Zhejiang Securities Regulatory Bureau took administrative regulatory measures by issuing a warning letter to Huatai United Securities in accordance with the Administrative Measures for Issuance and Trading of Corporate Bonds ( 《公司債券發行與交易管理辦法》 ). Upon receipt of the aforesaid letter in January 2025, Huatai United Securities has pursued corresponding internal accountability in accordance with the corporate system, and requested the responsible departments to seriously study the corporate management system, to conduct a comprehensive review on project management, risk identification and control, to perform their duties conscientiously and diligently, and to prevent the recurrence of similar incidents. Save for the foregoing, none of the Company and its Directors, Supervisors, senior management, shareholders holding over 5% of equity interest or de facto controllers were investigated by competent authorities, imposed with coercive measures by a judiciary authority or disciplinary department, transferred to a judicial authority or held criminally liable, banned from accessing to the market, identified as unsuitable persons, punished by other administrative departments or publicly condemned by a stock exchange. X. INTEGRITY OF THE COMPANY AND ITS CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS DURING THE REPORTING PERIOD During the Reporting Period, the Company and its de facto controllers maintained good faith with no cases such as non-performance of effective court judgment or overdue of relatively large liability. ![]() 257 XI. MAJOR RELATED-PARTY TRANSACTIONS Details on the related-party transactions under the relevant accounting standards can be found in Note 59 to the consolidated financial statements in this report. The Company confirmed that the related-party transactions were not qualified as the “connected transactions” or the “continuing connected transactions” as defined in Chapter 14A of the Hong Kong Listing Rules (as the case may be), or were in compliance with the disclosure requirements under Chapter 14A of the Hong Kong Listing Rules. XII. MATERIAL CONTRACTS AND PERFORMANCE THEREOF (I) The Company was not engaged in any custody, contracting or leasing (II) Guarantees Unit: 100 million Yuan Currency: RMB External guarantees of the Company (excluding the guarantees for subsidiaries) Total amount of guarantees during the Reporting Period (excluding the guarantees for subsidiaries) – Total balance of guarantees at the end of the Reporting Period (A) (excluding the guarantees for subsidiaries) – Guarantees of the Company and its subsidiaries for its subsidiaries Total amount of guarantees for subsidiaries during the Reporting Period 111.23 Total balance of guarantees for subsidiaries at the end of the Reporting Period (B) 323.36 Total guarantee amount of the Company (including the guarantees for subsidiaries) Total guarantee amount (A+B) 323.36 Percentage of the total guarantee amount to net assets of the Company (%) 16.85 Among which: Amount of guarantees provided for shareholders, de facto controllers and their related parties (C) – Amount of debt guarantees provided directly or indirectly for the guaranteed objects with an asset-liability ratio of more than 70% (D) 272.84 Excess amount of the total guarantee over 50% of the net assets (E) – Total amount of the three guarantees mentioned above (C+D+E) 272.84 Undue guarantees with joint and several liabilities Bearing the principal, interest and other expenses of the bonds ![]() 258 Explanations on guarantees 1. Guarantees Provided by the Company (1) In 2017, as considered and approved at the fifth meeting of the fourth session of the Board and the 2016 Annual General Meeting of the Company, the Company provided a net capital guarantee with the maximum amount of RMB1.9 billion to Huatai Asset Management. The net capital guarantee of RMB1.9 billion has not been utilized during the Reporting Period. (2) In 2018, as considered and approved at the sixteenth meeting of the fourth session of the Board, the Company provided a net capital guarantee with the maximum amount of RMB2.0 billion to Huatai United Securities. The net capital guarantee will be available from July 1, 2019. In 2022, Shenzhen Securities Regulatory Bureau approved the Company to adjust the amount of the commitment on the provision of net capital guarantee to Huatai United Securities in 2019 from RMB2.0 billion to RMB1.0 billion from June 21, 2022. As at the end of the Reporting Period, the Company provided a net capital guarantee with a total amount of RMB1.0 billion to Huatai United Securities. (3) In 2020, as considered and approved at the seventh meeting of the fifth session of the Board, the Company provided a liquidity guarantee with a maximum amount of RMB2.0 billion to Huatai United Securities, which had not been utilized during the Reporting Period. (4) In 2021, as considered and approved at the eleventh meeting of the fifth session of the Board and the 2021 First Extraordinary General Meeting of the Company, the persons authorized by the general mandate to issue onshore and offshore debt financing instruments of the Company may sign relevant agreements, and the Company (as the guarantor) has entered into a guarantee agreement with Citicorp International Limited (as the trustee), to provide an unconditional and irrevocable guarantee for USD1,300 million bonds and additional USD100 million bonds issued by Pioneer Reward Limited, a subsidiary of Huatai International. Among them, USD900 million bonds were due for repayment in April 2024 and the corresponding guarantee was automatically terminated. (5) In 2022, the Company (as the guarantor) entered into a guarantee agreement with Citicorp International Limited (as the trustee), to provide an unconditional and irrevocable guarantee for USD1,000 million bonds and RMB5,000 million bonds issued by Pioneer Reward Limited, a subsidiary of Huatai International. ![]() 259 (6) In 2023, the Company (as the guarantor) entered into a guarantee agreement with Hongkong and Shanghai Banking Corporation Limited (as the trustee), to provide an unconditional and irrevocable guarantee for USD1,600 million bonds issued by Pioneer Reward Limited, a subsidiary of Huatai International. 2. Guarantees Provided by the Subsidiaries During the Reporting Period, Huatai International and its subsidiaries had provided guarantees for the benefits of their subsidiaries in connection with their business operations, which are mainly guarantees for corporate bonds and guarantees for medium- term notes. The aggregate guaranteed amount was approximately RMB11.123 billion as of the end of the Reporting Period. In addition, Huatai International and its subsidiaries provided guarantees, some of which were unlimited, for various International Swaps and Derivatives Association Agreements (ISDA), Global Master Repurchase Agreements (GMRA), Global Master Securities Lending Agreements (GMSLA) and Broker-Dealer Agreements. The above-mentioned unlimited guarantees were issued in accordance with normal international banking and capital market practices, which allowed the banks and other financial institutions which Huatai International and its subsidiaries deal with to support large market events and fluctuating requirements, therefore ensuring Huatai International and its subsidiaries not constrained in the normal course of business. Since Huatai International and its subsidiaries are limited companies, the absolute maximum exposure of these guarantees in aggregate would be limited to the respective net assets of Huatai International and its subsidiaries. 3. The aforesaid amount of debt guarantees provided directly or indirectly for the guaranteed objects with an asset-liability ratio of more than 70% was RMB27.284 billion, including: 1) guarantee provided by the Company to Pioneer Reward Limited, a subsidiary of Huatai International, for the issuance of USD3.1 billion bonds and RMB5.0 billion bonds; 2) the guarantee provided by Huatai International and its subsidiaries to meet the needs of the business operation of their subsidiaries. (III) Other material contracts 1. According to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange ( 《上海證券交易所股票上市規則》 ) and the Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No. 2 – Contents and Formats of Annual Report 《 ( 公開發行證券的公司 信息披露內容與格式準則第 2 號 － 年度報告的內容與格式》 ), the Group did not enter into material contracts during the Reporting Period. ![]() 260 2. The progress of relevant significant contracts disclosed during the Reporting Period is as follows: During the Reporting Period, the Construction Contract for the Work of Section I of the Interior Decoration and Renovation of the Plaza of Huatai Securities ( 《華 泰證券廣場室內裝飾裝修一標段工程施工合同》 ) was performed normally, and the Company had paid the contract price of RMB1,285,100 in accordance with the contract. As of the end of the Reporting Period, the Company had made contract payments of RMB138,177,900 in accumulation (excluding social insurance premium paid on behalf, etc.), and the contract had been completely performed. XIII. EXPLANATION ON PROGRESS IN USE OF FUNDS RAISED All funds raised from the issuance of shares by the Company have been used up before the Reporting Period. XIV. DESCRIPTION OF OTHER MAJOR EVENTS THAT HAVE SIGNIFICANT IMPACTS ON INVESTORS TO MAKE VALUE JUDGMENTS AND INVESTMENT DECISIONS (I) Change of shareholdings in subsidiaries For details of change of shareholdings in subsidiaries during the Reporting Period, please refer to “Major disposal of assets and shareholdings by the Company during the Reporting Period” under “Major Operations during the Reporting Period” under “Management Discussion and Analysis and Report of the Board” in this report. (II) Description of major events of the subsidiaries 1. Huatai Purple Gold Investment During the Reporting Period, Huatai Purple Gold Investment initiated the establishment of Nantong Huatai Intelligent Manufacture and Technology Industries Investment Partnership (Limited Partnership) ( 南通華泰智造科技產 業投資合夥企業 ( 有限合夥 )). As of the end of the Reporting Period, the total subscription scale of such fund amounted to RMB820 million. Huatai Purple Gold Investment, as a fund manager, an executive partner and a general partner, contributed RMB250 million. During the Reporting Period, Huatai Purple Gold Investment initiated the establishment of Chengdu Huatai Tianfu Digital Intelligence Venture Capital Partnership (Limited Partnership) ( 成都華泰天府數智創業投資合夥企業 ( 有限合 夥 )). As of the end of the Reporting Period, the total subscription scale of such fund amounted to RMB501 million. Huatai Purple Gold Investment, as a fund manager, an executive partner and a general partner, contributed RMB1 million. ![]() 261 During the Reporting Period, the total subscription scale of Nanjing Huatai Xingong Industries Investment Fund (Limited Partnership) ( 南京華泰新工產業投 資基金 ( 有限合夥 )), established by Huatai Purple Gold Investment, increased from RMB800 million to RMB920 million. As of the end of the Reporting Period, the total subscription scale of such fund amounted to RMB920 million. Huatai Purple Gold Investment, as a fund manager, an executive partner and a general partner, contributed RMB250 million. During the Reporting Period, the cancellation of industry and commerce registration of Shengdao (Nanjing) Equity Investment Management Co., Ltd. ( 盛 道 ( 南京 ) 股權投資管理有限公司 ), a controlled subsidiary of Huatai Purple Gold Investment, was completed. During the Reporting Period, the cancellation of industry and commerce registration of Shanghai Ruisi Investment (Limited Partnership) ( 上海瑞肆投資中 心 ( 有限合夥 )) managed by Huatai Purple Gold Investment, was completed. 2. Huatai Asset Management During the Reporting Period, the general manager of Huatai Asset Management changed from Mr. Nie Tingjin to Mr. Jiang Xiaoyang. 3. Huatai International During the Reporting Period, Mr. Han Zhencong and Ms. Jiao Xiaoning served as the directors of Huatai International. During the Reporting Period, subsidiaries of Huatai International obtained the following business qualifications: (1) Huatai Financial Holdings (Hong Kong) obtained the underwriting qualification for the TOKYO PRO-BOND Market issued by the Tokyo Stock Exchange of Japan. (2) A wholly-owned subsidiary of Huatai International was granted a stock transaction code by stock market regulatory authorities in Vietnam, which enabled such company to directly conduct transactions as a qualified overseas investor in the Hochiminh Stock Exchange and Hanoi Stock Exchange in Vietnam. (3) Huatai Securities (USA), Inc., a wholly-owned subsidiary of Huatai International, obtained approval from the Nasdaq Stock Market in the United States to add limited underwriting membership, which enabled such company to assist initially listed companies with underwriting transactions. ![]() 262 4. Jiangsu Equity Exchange During the Reporting Period, the chairman of Jiangsu Equity Exchange changed from Mr. Sun Hanlin to Mr. Zhang Anzhong. (III) For other major events disclosed by the Company on China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily and the website of the SSE (www.sse.com.cn) during the Reporting Period, please refer to Appendix IV. Information Disclosures Index. XV. MAIN OFF-BALANCE SHEET ITEMS THAT MAY AFFECT THE COMPANY’S FINANCIAL SITUATION AND OPERATING RESULTS For the main off-balance sheet items that may affect the Company’s financial situation and operating results, please refer to “Guarantees” under “Material Contracts and Performance Thereof” under “Major Events” in this report. XVI. IMPORTANT MATTERS AFTER THE BALANCE SHEET DATE (I) Changes in Directors of the Company On March 14, 2025, the Board of the Company received a written resignation report from Ms. Yin Lihong, an executive Director. Ms. Yin Lihong has proposed to resign from her positions as an executive Director of the sixth session of the Board of the Company and as a member of the Nomination Committee of the Board due to work adjustment, upon which she no longer holds any position in the Company. In accordance with the relevant provisions of the Company Law and the Articles of Association, Ms. Yin Lihong’s resignation did not result in the number of members of the Board of the Company falling below the statutory minimum, nor did it affect the normal operation of the Board of the Company. Her resignation took effect on the date on which her resignation report was delivered to the Board. (II) Proposal or resolution on annual distribution Please refer to “Important Notice” in this report. (III) Material investment and financing activities Please refer to “Description on Other Events after the Balance Sheet Date” under “Events after the Balance Sheet Date” under “Financial Report” in this report. (IV) Material litigation and arbitration After the Reporting Period, the Company did not have any material litigation and arbitration. (V) Business combination or disposal of subsidiary In January 2025, the industrial and commercial registration modification procedures for the transfer of its 20% equity interest in Jiangsu Equity Exchange to Jiangsu Jincai Investment Co., Ltd. by the Company had been completed. The Company’s shareholding in Jiangsu Equity Exchange, which is a participating subsidiary of the Company, changed to 32%. ![]() 263 (VI) Relocation of securities branches No. Name before relocation Name after relocation Address after relocation Issue date of license 1 Securities Branch in South Street, Liyang Securities Branch in South Street, Liyang 103, No. 628 Nanda Street, New Century Plaza, Licheng Street, Liyang City January 14, 2025 2 Securities Branch in Ronghui Road, Macheng Securities Branch in Jintong Avenue, Macheng No. 1-01, 1/F and No. 2-01, 2/F for commercial purposes, Block 4, Yingyuan Health City, West of Jintong Avenue, Macheng Economic Development Zone, Huanggang City, Hubei Province January 14, 2025 3 Securities Branch in Yonghe Temple, Beijing Securities Branch in Yonghe Temple, Beijing 501, 502, 512, 515 and 516, 5/F, Building 2, 116, 1/F and 216, 2/F, Building 1, No. 28 Andingmen East Street, Dongcheng District, Beijing City January 23, 2025 (VII) Other situations that might materially affect the financial position, results of operation and cash flow of the Company after the Reporting Period The Company had no other situations that might materially affect the financial position, results of operation and cash flow of the Company after the Reporting Period. ![]() 264 CHANGES IN SHARES AND SHAREHOLDERS I. CHANGES IN SHARE CAPITAL (I) Statement of changes in shares 1. Statement of changes in shares Unit: Shares Before the change Increase/decrease (+, -) of the change After the change Number Percentage (%) New shares issued Bonus shares Shares converted from reserves Others Subtotal Number Percentage (%) I. Shares subject to selling restrictions 29,278,392 0.32 – – – -15,352,513 -15,352,513 13,925,879 0.15 1. Shares held by the state – – – – – – – – – 2. Shares held by state-owned legal persons – – – – – – – – – 3. Shares held by other domestic investors 29,278,392 0.32 – – – -15,352,513 -15,352,513 13,925,879 0.15 Including: Shares held by domestic non-state-owned legal persons – – – – – – – – – Shares held by domestic natural persons 29,278,392 0.32 – – – -15,352,513 -15,352,513 13,925,879 0.15 4. Shares held by foreign investors – – – – – – – – – Including: Shares held by overseas legal persons – – – – – – – – – Shares held by overseas natural persons – – – – – – – – – II. Tradable shares not subject to selling restrictions 9,045,384,943 99.68 – – – -32,008,541 -32,008,541 9,013,376,402 99.85 1. Ordinary shares in RMB 7,326,339,263 80.73 – – – -32,008,541 -32,008,541 7,294,330,722 80.80 2. Domestic listed foreign shares – – – – – – – – – 3. Overseas listed foreign shares 1,719,045,680 18.94 – – – – – 1,719,045,680 19.04 4. Others – – – – – – – – – III. Total shares 9,074,663,335 100.00 – – – -47,361,054 -47,361,054 9,027,302,281 100.00 2. Information on changes in shares On January 10, 2024, the Company cancelled 45,278,495 A shares deposited in the repo-securities account. During the Reporting Period, the conditions for lifting the selling restrictions of the second lock-up period under the Restricted Share Incentive Scheme of A Shares of the Company have been fulfilled, a total of 13,269,954 restricted Shares were released from selling restrictions, and were listed for trading on May 16, 2024. ![]() 265 During the Reporting Period, the Company repurchased and cancelled part or all of 2,082,559 restricted A Shares granted to 175 incentive participants but subject to selling restriction due to non-fully fulfillment of condition of individual performance, release or termination of employment with the Company and other circumstances. On September 20, 2024, the Company completed the repurchase and cancellation of such restricted A Shares, and the total share capital of the Company changed to 9,027,302,281 Shares, comprising 7,308,256,601 A shares, representing approximately 80.96% of the total number of shares; and 1,719,045,680 H shares, representing approximately 19.04% of the total number of shares. 3. Impact of the change in shares on earnings per share, net asset value per share or other financial indicators for the latest year and the latest period In 2024, the total amount of shares decreased by 47,361,054 as the Company completed the repurchase and cancellation of part of the restricted A Shares. Based on the weighted average number, basic earnings per share in 2024 were RMB1.62, diluted earnings per share were RMB1.62. The net assets per share attributable to owners of the listed company as at the end of 2024 were RMB21.23. Such net assets per share attributable to owners of the listed company include perpetual bonds issued by the Company. Net of the influence of perpetual bonds, net assets per share attributable to ordinary shareholders of the listed company as at the end of 2024 were RMB18.10. (II) Changes in shares subject to selling restrictions Unit: Shares Name of shareholder Number of shares subject to selling restrictions at the beginning of the year Number of shares released from selling restrictions during the year Increase in the number of shares subject to selling restrictions during the year Number of shares subject to selling restrictions at the end of the year Reasons for selling restrictions Date of release from selling restrictions Incentive participants of restricted A Shares 29,278,392 13,269,954 -2,082,559 13,925,879 Incentive scheme of restricted A Shares See note for details Total 29,278,392 13,269,954 -2,082,559 13,925,879 / / ![]() 266 Notes: 1. Pursuant to the requirements under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., which was disclosed by the Company on February 9, 2021, if the restricted Shares granted under the incentive scheme meet the conditions of unlocking after 24 months from the date of completion of registration of the corresponding granted portion of shares, the incentive participants may release the restriction in three phases in the next 36 months in the proportion of 33%, 33% and 34%. The registration date of the restricted Shares under the incentive scheme was April 6, 2021, and the second lock-up period expired on April 5, 2024. The number of the unlocked Shares was 13,269,954 Shares, and the listing and trading date of the unlocked Shares was May 16, 2024. 2. On September 20, 2024, the Company completed the repurchase and cancellation of 2,082,559 restricted A Shares. II. THE ISSUANCE AND LISTING OF SECURITIES (I) Issuance of securities during the Reporting Period Currency: RMB Types of shares and their derivative securities Date of issue Issue price (or interest rate) Number of securities issued Date of listing Number of securities permitted to be listed for trading Ending date of the trading Bonds (including enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises) Short-term corporate bonds 2024-10-16 1.96% RMB2.0 billion 2024-10-23 RMB2.0 billion 2025-03-17 Short-term corporate bonds 2024-11-11 1.90% RMB4.8 billion 2024-11-19 RMB4.8 billion 2025-05-12 Short-term corporate bonds 2024-11-11 1.92% RMB1.0 billion 2024-11-19 RMB1.0 billion 2025-11-12 Short-term corporate bonds 2024-12-06 1.75% RMB6.0 billion 2024-12-16 RMB6.0 billion 2025-06-09 Short-term corporate bonds 2024-12-20 1.67% RMB3.0 billion 2024-12-30 RMB3.0 billion 2025-08-22 Perpetual subordinated bonds 2024-11-22 2.39% RMB2.6 billion 2024-12-02 RMB2.6 billion N/A ![]() 267 Information of the issuance of securities during the Reporting Period: 1. Short-term corporate bonds On October 16, 2024, the Company publicly issued the 2024 Short-term Corporate Bonds of Huatai Securities (First Tranche) to professional investors. The amount of the said bonds came to RMB2.0 billion at an issue price of RMB100 per bond, carrying a 151-day fixed rate with a coupon rate of 1.96%. Such bonds were listed for trading on October 23, 2024. The abbreviation and code of the bonds were “24 Huatai S1” and “241764.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB2.0 billion with the trading to be ended on March 17, 2025. On November 11, 2024, the Company publicly issued the 2024 Short-term Corporate Bonds of Huatai Securities (Second Tranche) to professional investors. The amount of the said bonds came to RMB5.8 billion at an issue price of RMB100 per bond, carrying 181-day and 1-year fixed rates. The amount of the 181-day bonds came to RMB4.8 billion with a coupon rate of 1.90%, while the amount of the 1-year bonds came to RMB1.0 billion with a coupon rate of 1.92%. Such bonds were listed for trading on November 19, 2024. The abbreviation and code of the 181-day bonds were “24 Huatai S2” and “241797.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB4.8 billion with the trading to be ended on May 12, 2025; the abbreviation and code of the 1-year bonds were “24 Huatai S3” and “241798.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB1.0 billion with the trading to be ended on November 12, 2025. On December 6, 2024, the Company publicly issued the 2024 Short-term Corporate Bonds of Huatai Securities (Third Tranche) (Type I) to professional investors. The amount of the said bonds came to RMB6.0 billion at an issue price of RMB100 per bond, carrying 182-day fixed rates with a coupon rate of 1.75%. Such bonds were listed for trading on December 16, 2024. The abbreviation and code of the bonds were “24 Huatai S4” and “242117.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB6.0 billion with the trading to be ended on June 9, 2025. On December 20, 2024, the Company publicly issued the 2024 Short-term Corporate Bonds of Huatai Securities (Fourth Tranche) to professional investors. The amount of the said bonds came to RMB3.0 billion at an issue price of RMB100 per bond, carrying 243-day fixed rates with a coupon rate of 1.67%. Such bonds were listed for trading on December 30, 2024. The abbreviation and code of the bonds were “24 Huatai S6” and “242135.SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB3.0 billion with the trading to be ended on August 22, 2025. ![]() 268 2. Perpetual subordinated bonds On November 22, 2024, the Company publicly issued the 2024 Perpetual Subordinated Bonds of Huatai Securities (First Tranche) to professional investors. The amount of the said bonds came to RMB2.6 billion at an issue price of RMB100 per bond, with a coupon rate of 2.39% during the first 5 interest-bearing years, with every 5 interest-bearing years as a repricing cycle. The issuer has the right to choose to extend the term of the bonds by 1 repricing cycle (that is, to extend it by 5 years) or choose to settle the payment for the bonds in full at the end of each repricing cycle. Such bonds were listed for trading on December 2, 2024. The abbreviation and code of the bonds were “24 Huatai Y1” and “242041. SH”, respectively, and the amount of the bonds permitted to be listed for trading came to RMB2.6 billion. 3. Offshore bonds During the Reporting Period, in order to supplement its working capital and repay its debt financing instruments, Huatai International Finance Limited, a subsidiary of Huatai International, issued the medium-term notes of approximately USD593 million in aggregate. Huatai International provided unconditional and irrevocable guarantee for the medium term note program. 4. Structured notes The Company cumulatively issued 2,891 structured notes, with a total amount of RMB32.061 billion in 2024. As of December 31, 2024, the Company had 372 structured notes in duration period, with an amount of RMB20.241 billion. ![]() 269 (II) Changes in total number of the shares and shareholding structure of the Company and changes in structure of assets and liabilities of the Company Please refer to “Changes in Share Capital” in this section for the details of changes in total number of the shares and shareholding structure of the Company. Please refer to “Analysis of assets and liabilities” under “Major Operations during the Reporting Period” in “Management Discussion and Analysis and Report of the Board” of this report for the details of changes in structure of assets and liabilities of the Company. (III) No Existing Shares held by employees during the Reporting Period III. INFORMATION OF SHAREHOLDERS AND DE FACTO CONTROLLERS (I) Total number of shareholders Total number of shareholders of ordinary shares as of the end of the Reporting Period 241,442 Total number of shareholders of ordinary shares as of the end of last month prior to the date on which the annual report shall be disclosed 225,362 Total number of shareholders of preferred shares whose rights have been restored as of the end of the Reporting Period – Total number of shareholders of preferred shares whose voting rights have been restored as of the end of last month prior to the date on which the annual report shall be disclosed – Among the total number of shareholders of ordinary shares as of the end of the Reporting Period, shareholders of A Shares came to 235,072 and registered shareholders of H Shares came to 6,370. Among the total number of shareholders of ordinary shares as of the end of last month (February 28, 2025) prior to the date on which the annual report shall be disclosed, shareholders of A Shares came to 219,021 and registered shareholders of H Shares came to 6,341. ![]() 270 (II) Shareholding of top ten shareholders and top ten holders of tradable shares (or holders of shares not subject to selling restrictions) as of the end of the Reporting Period Unit: Shares Shareholding of top ten shareholders (excluding lent shares by way of refinancing) Increase/decrease Number of shares held as at the end Number of shares held subject Pledged, marked or frozen shares Nature of shareholder Name of shareholder (in full name) during the Reporting Period of the Reporting Period Percentage (%) to selling restrictions Status of shares Number of shares Jiangsu Guoxin Investment Group Limited – 1,373,481,636 15.21 – Nil – State-owned legal person HKSCC Nominees Limited 366,600 1,266,429,848 14.03 – Nil – Foreign legal person Hong Kong Securities Clearing Company Limited 193,750,761 540,003,793 5.98 – Nil – Foreign legal person Jiangsu Communications Holding Co., Ltd. – 489,065,418 5.42 – Nil – State-owned legal person Govtor Capital Group Co., Ltd. 318,000 356,233,206 3.95 – Nil – State-owned legal person Jiangsu SOHO Holdings Group Co., Ltd. – 277,873,788 3.08 – Nil – State-owned legal person China Securities Finance Corporation Limited – 152,906,738 1.69 – Nil – Unknown Jiangsu SOHO International Group Corp. – 135,838,367 1.50 – Nil – State-owned legal person Jiangsu Hiteker High-tech Co., Ltd. – 123,169,146 1.36 – Unknown 123,169,146 Domestic non-state-owned legal person Hangzhou Haoyue Enterprise Management Co., Ltd. [Note] -168,119,652 100,079,581 1.11 – Nil – Domestic non-state-owned legal person ![]() 271 Shareholding of top ten holders of shares not subject to selling restrictions (excluding lent shares by way of refinancing) Number of tradable shares not subject to Class and number of shares Name of shareholder selling restrictions Class Number Jiangsu Guoxin Investment Group Limited 1,373,481,636 Ordinary shares in RMB 1,271,072,836 Overseas listed foreign shares 102,408,800 HKSCC Nominees Limited 1,266,429,848 Overseas listed foreign shares 1,266,429,848 Hong Kong Securities Clearing Company Limited 540,003,793 Ordinary shares in RMB 540,003,793 Jiangsu Communications Holding Co., Ltd. 489,065,418 Ordinary shares in RMB 452,065,418 Overseas listed foreign shares 37,000,000 Govtor Capital Group Co., Ltd. 356,233,206 Ordinary shares in RMB 342,028,006 Overseas listed foreign shares 14,205,200 Jiangsu SOHO Holdings Group Co., Ltd. 277,873,788 Ordinary shares in RMB 76,460,788 Overseas listed foreign shares 201,413,000 China Securities Finance Corporation Limited 152,906,738 Ordinary shares in RMB 152,906,738 Jiangsu SOHO International Group Corp. 135,838,367 Ordinary shares in RMB 41,132,567 Overseas listed foreign shares 94,705,800 Jiangsu Hiteker High-tech Co., Ltd. 123,169,146 Ordinary shares in RMB 123,169,146 Hangzhou Haoyue Enterprise Management Co., Ltd. 100,079,581 Ordinary shares in RMB 100,079,581 Description of special repurchase accounts for the top ten shareholders There are no special repurchase accounts for the top ten shareholders. Description of the voting rights entrusted by the above shareholders, the voting rights the above shareholders are entrusted with and the voting rights the above shareholders abstained from There are no voting rights entrusted by the above shareholders, the voting rights the above shareholders are entrusted with and the voting rights the above shareholders abstained from. Description of the related party relationships or acting in concert among the above shareholders Guoxin Group, Communications Holding, Govtor Capital and Jiangsu SOHO Holdings Group Co., Ltd. are wholly owned by Jiangsu SASAC. Jiangsu SOHO Holdings Group Co., Ltd. is the controlling shareholder of Jiangsu SOHO International Group Corp. Apart from the above, the Company is not aware of any related party relationship among other shareholders or whether such shareholders are parties acting in concert as specified in the Regulations on the Takeover of Listed Companies. Explanation of shareholders of preferred shares with restored voting rights and the number of shares held by them There are no shareholders of preferred shares of the Company. Notes: 1. The class of shareholders of ordinary shares in RMB (A Shares) represents the class of accounts held by them registered with Shanghai Branch of China Securities Depository and Clearing Corporation Limited. 2. Among the holders of overseas listed foreign shares (H Shares) of the Company, shares of non-registered shareholders are held by HKSCC Nominees Limited on their behalf. As of the end of the Reporting Period, Guoxin Group, Communications Holding, Govtor Capital, Jiangsu SOHO Holdings Group Co., Ltd. and Jiangsu SOHO International Group Corp. acquired, via Southbound Trading, 102,408,800, 37,000,000, 14,205,200, 201,413,000 and 94,705,800 H Shares of the Company, respectively, which are also being held by HKSCC Nominees Limited. These shares are specifically and separately listed at the time of disclosure of this report; should such shares be included, the actual number of shares held by HKSCC Nominees Limited on their behalf would have been 1,716,162,648, representing approximately 19.01% of the Company’s total shares. 3. Hong Kong Securities Clearing Company Limited is the nominal holder of the A Shares of the Company held by the investors in Northbound Trading under Shanghai-Hong Kong Stock Connect. ![]() 272 4. Citibank, National Association is the depositary of the Company’s GDRs, and the domestic underlying A Shares represented by the GDRs are legally registered under its name. According to the statistics provided by the depositary, the Company had a total of 105,941 GDRs in the duration period as of the end of the Reporting Period, accounting for approximately 0.13% of the approved number for issuance by the CSRC. 5. Alibaba (China) Technology Co., Ltd. held 268,199,233 A Shares of the Company as at the end of 2023 and reassigned the entire A Shares of the Company held by it into the name of Hangzhou Haoyue Enterprise Management Co., Ltd., a subordinate company of Alibaba Group Holding Limited, by way of spin-off and transfer in January 2024. Lent shares by way of refinancing by shareholders holding 5% or more of the shares, top ten shareholders and top ten shareholders of tradable shares not subject to selling restrictions are as follows: Unit: Shares Lent shares by way of refinancing by shareholders holding 5% or more of the shares, top ten shareholders and top ten shareholders of tradable shares not subject to selling restrictions Name of shareholder (in full name) Total number of shares held through ordinary account and credit account as at the beginning of the Reporting Period Lent shares by way of refinancing and outstanding as at the beginning of the Reporting Period Total number of shares held through ordinary account and credit account as at the end of the Reporting Period Lent shares by way of refinancing and outstanding as at the end of the Reporting Period Total number Percentage (%) Total number Percentage (%) Total number Percentage (%) Total number Percentage (%) Govtor Capital Group Co., Ltd. 341,710,006 3.7655 318,000 0.0035 342,028,006 3.7888 – – Note: Total number of shares presented in the above table is the total number of shares held by such shareholder through A shares ordinary securities account and A shares credit securities account, excluding the number of H Shares of the Company held by it. During the Reporting Period, there was no addition or withdrawal in the top ten shareholders and top ten shareholders of tradable shares not subject to selling restrictions of the Company due to shares lent or returned by refinancing. ![]() 273 Number of shares held by top ten holders of shares subject to selling restrictions and relevant selling restrictions: Unit: Shares Listing and trading of shares subject to selling restrictions No. Name of holders of shares subject to selling restrictions Number of shares held subject to selling restrictions Permitted time for listing and trading Number of additional shares permitted to be listed and traded Selling restrictions 1 Zhou Yi 244,800 See note for details – See note for details 2 Han Zhencong 204,000 See note for details – See note for details 3 Sun Hanlin 204,000 See note for details – See note for details 4 Jiang Jian 204,000 See note for details – See note for details 5 Zhang Hui 204,000 See note for details – See note for details 6 Chen Tianxiang 204,000 See note for details – See note for details 7 Jiao Xiaoning 170,000 See note for details – See note for details 8 Jiao Kai 170,000 See note for details – See note for details 9 Wang Chong 170,000 See note for details – See note for details 10 Incentive participants granted under the Restricted Share Incentive Scheme of A Shares of the Company (16 individuals) 68,000 See note for details – See note for details Description of the related party relationships or acting in concert among the above shareholders The Company is not aware of any related party relationship or acting in concert arrangement. Note: The above shares subject to selling restrictions represent the shares granted by the Company to the incentive participants due to the implementation of incentive scheme of restricted A Shares. Details of listing and trading of shares subject to selling restrictions and selling restrictions are available in the Incentive Scheme of Restricted A Shares disclosed by the Company on the website of the SSE on February 9, 2021. As of the end of the Reporting Period, there were totally 16 incentive participants who held 68,000 restricted A Shares, and were listed as the tenth shareholder subject to selling restrictions. (III) A strategic investor or common legal person who became one of the top ten shareholders as a result of subscription for new shares allotted to them During the Reporting Period, the Company did not have any strategic investor or common legal person who became one of the top ten shareholders as a result of subscription for new shares allotted to them. ![]() 274 IV. CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLERS (I) Controlling Shareholders There are no controlling shareholders with more than 50% shareholding of the Company. (II) De facto controllers 1 Legal person Name State-owned Assets Supervision and Administration Commission of Jiangsu Provincial Government Person in charge or legal representative of the unit Xie Zhengyi ![]() 275 2 Framework of the ownership and controlling relationship between the Company and the de facto Controllers State-owned Assets Supervision and Administration Commission of Jiangsu Provincial Government 75.08% 100% 100% 100% 100% 100% 100% 100% 100% 15.2148% 5.4176% 3.9462% 3.0781% 1.5048% 0.1233% 0.0410% 0.1329% 0.1959% Jiangsu Guoxin Investment Group Limited Jiangsu Communications Holding Co., Ltd. Govtor Capital Group Co., Ltd. Jiangsu SOHO Holdings Group Co., Ltd. Jiangsu SOHO International Group Corp. Jiangsu Suhui Assets Management Co., Ltd. Jiangsu SOHO Xinzhi Group Co., Ltd. ( 江蘇省蘇豪新智集團有限公司 ) Jiangsu Coast Development Group Co., Ltd. Jiangsu Coast Development Investment Co., Ltd. Huatai Securities Co., Ltd. Note: During the Reporting Period, the name of Jiangsu Overseas Group Co., Ltd. was changed to Jiangsu SOHO Xinzhi Group Co., Ltd. 3 De facto controllers did not control the Company through trust or other asset management programs ![]() 276 V. DURING THE REPORTING PERIOD, THERE WERE NO CIRCUMSTANCES WHERE THE CUMULATIVE NUMBER OF SHARES PLEDGED BY THE CONTROLLING SHAREHOLDERS OR THE LARGEST SHAREHOLDER AND PERSONS ACTING IN CONCERT WITH THEM ACCOUNTED FOR MORE THAN 80% OF THE COMPANY’S SHARES HELD BY THEM VI. OTHER LEGAL-PERSON SHAREHOLDERS WITH MORE THAN 10% SHAREHOLDING Unit: 100 million Yuan Currency: RMB Name of legal-person shareholder Person in charge or legal representative of the unit Date of establishment Organization code Registered capital Main businesses or management activities Jiangsu Guoxin Investment Group Limited Dong Liang February 22, 2002 91320000735724800G 500 Investment, management, operation, transfer of state-owned capital; enterprise trusteeship, assets restructuring, management consultation, house leasing and other businesses upon approval. Remarks Shares held by HKSCC Nominees Limited are owned by the non-registered holders of H Shares. VII. THERE WERE NO RESTRICTIONS ON SHAREHOLDING REDUCTION DURING THE REPORTING PERIOD VIII. SPECIFIC IMPLEMENTATION OF SHARE REPURCHASE IN THE REPORTING PERIOD Currency: RMB Name of share repurchase plan Repurchase and Cancellation of Part of the Restricted A Shares Date of share repurchase plan disclosed April 13, 2024 Number of shares repurchased and percentage to the total share capital The total number of the Restricted Shares to be repurchased and cancelled for this time is 2,082,559, representing approximately 0.02% of the total share capital of the Company as at April 13, 2024 Amount of repurchase (Yuan) 15,348,459.83 Period of repurchase September 20, 2024 Purpose of repurchase Cancellation Number of shares repurchased (shares) 2,082,559 Number of shares repurchased as a percentage of the underlying shares under the stock incentive plan 4.58% Progress of the Company to reduce shareholding of shares repurchased through centralized price bidding N/A ![]() 277 IX. SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES As of December 31, 2024, as far as the Company and the Directors are aware after having made all reasonable enquiries, the following persons (other than the Directors, Supervisors or chief executives of the Company) held interests or short positions in shares or underlying shares which shall be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO and were recorded in the register required to be kept by the Company under Section 336 of the SFO: No. Name of substantial shareholders Class of shares Nature of interests Number of shares held (share) Percentage of the total issued shares of the Company (%) Percentage of the total issued A Shares/H Shares of the Company (%) Long position (Note 2) /short position (Note 3) / shares available for lending 1 Jiangsu Guoxin Investment Group Limited A Shares Beneficial owner 1,271,072,836 14.08 17.39 Long position H Shares (Southbound Trading) Beneficial owner 102,408,800 1.13 5.96 Long position 2 Jiangsu Communications Holding Co., Ltd. A Shares Beneficial owner 452,065,418 5.01 6.19 Long position H Shares (Southbound Trading) Beneficial owner 37,000,000 0.41 2.15 Long position 3 Jiangsu SOHO Holdings Group Co., Ltd. A Shares Beneficial owner 76,460,788 0.85 1.05 Long position Interests of controlled corporations 44,832,567 0.50 0.61 Long position H Shares (Southbound Trading) Beneficial owner 201,413,000 2.23 11.72 Long position Interests of controlled corporations 105,835,800 1.17 6.16 Long position Notes: 1. Under Section 336 of the SFO, forms disclosing interests shall be submitted by shareholders of the Company upon satisfaction of certain conditions. Changes of shareholders’ shareholdings in the Company are not required to inform the Company and the Hong Kong Stock Exchange unless certain conditions are satisfied. Therefore, there could be differences between substantial shareholders’ latest shareholdings in the Company and the shareholding information reported to the Hong Kong Stock Exchange. Jiangsu SOHO Holdings Group Co., Ltd. directly held a long position in 76,460,788 A Shares and 201,413,000 H Shares of the Company, and, through its controlled corporation (namely Jiangsu SOHO International Group Corp. ( 江蘇蘇豪國際集團股份有限公司 )), indirectly held a long position in 41,132,567 A Shares and 94,705,800 H Shares of the Company; through its controlled corporation (namely Jiangsu SOHO Xinzhi Group Co., Ltd.), indirectly held a long position in 3,700,000 A Shares of the Company; through its controlled corporation (namely Jiangsu Suhui Assets Management Co., Ltd.), indirectly held a long position in 11,130,000 H Shares of the Company. ![]() 278 2. A shareholder has a “long position” if such shareholder has interests in shares, including interests through holding, writing or issuing financial instruments (including derivatives), under which such shareholder (1) has a right to purchase the underlying shares; (2) is under an obligation to purchase the underlying shares; (3) has a right to receive payments if the price of the underlying shares increases; or (4) has a right to avoid or reduce a loss if the price of the underlying shares increases. 3. A shareholder has a “short position” if such shareholder borrows shares under a securities borrowing and lending agreement, or holds, writes or issues financial instruments (including derivatives) under which such shareholder (1) has a right to require another person to purchase the underlying shares; (2) is under an obligation to deliver the underlying shares; (3) has a right to receive payments if the price of the underlying shares declines; or (4) has a right to avoid or reduce a loss if the price of the underlying shares declines. Save as disclosed above, the Company is not aware of any other person (other than the Directors, Supervisors and chief executives of the Company) having any interests or short positions in the shares or underlying shares of the Company as at December 31, 2024, which shall be recorded in the register pursuant to Section 336 of the SFO. X. DIRECTORS’, SUPERVISORS’ AND CHIEF EXECUTIVES’ INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS As of the end of the Reporting Period, details on the shares held by the Director(s) of the Company due to the Company’s implementation of the Restricted Share Incentive Scheme of A Shares are as follows: No. Name Class of shares Nature of interests Number of shares held (share) Percentage of the total issued shares of the Company (%) Percentage of the total issued A Shares/ H Shares of the Company (%) Long position/ short position/ shares available for lending 1 Zhou Yi A Shares Beneficial owner 720,000 0.008 0.010 Long position Save as disclosed above, as of December 31, 2024, the Company was not aware of any other Directors, Supervisors or chief executives of the Company having any interests or short positions in the shares, underlying shares or debentures of the Company or its associated corporations, which shall be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which were taken or deemed to have under such provisions of the SFO) or which would be required, pursuant to section 352 of the SFO, to be recorded in the register of interests, or which shall, pursuant to the Model Code, be notified to the Company and the Hong Kong Stock Exchange. ![]() 279 XI. REPURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES OF THE COMPANY AND ITS SUBSIDIARIES Save as the repurchase and cancellation of part of the restricted A Shares stated in “Specific Implementation of Share Repurchase in the Reporting Period” in this section of this report and “Share Incentive Scheme, Employee Stock Ownership Plan or Other Employee Incentives Measures and Their Implication” under “Corporate Governance” in this report, the Company and its subsidiaries have not repurchased, sold or redeemed any listed securities of the Company and its subsidiaries during the Reporting Period (including sales of treasury shares (as defined in the Hong Kong Listing Rules)). As of the end of the Reporting Period, the Company did not hold any treasury shares. XII. ARRANGEMENT FOR DIRECTORS AND SUPERVISORS TO PURCHASE SHARES OR DEBENTURES Save for the incentive plan stated in “Share Incentive Scheme, Employee Stock Ownership Plan or Other Employee Incentives Measures and Their Implication” under “Corporate Governance” in this report, at no time during the Reporting Period has the Company, its holding companies or any of its subsidiaries or fellow subsidiaries, entered into any arrangements to enable the Directors and Supervisors to acquire benefits by means of the purchase of shares in, or debentures of, the Company or any other corporate bodies. XIII. THE COMPANY HAD NO PREFERRED SHARES ![]() 280 BONDS I. CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND NON-FINANCIAL CORPORATE DEBT FINANCING INSTRUMENTS (I) During the Reporting Period, the Company had no enterprise bonds (II) Corporate Bonds 1. Basic information on corporate bonds Information on corporate bonds of the Company in duration as at the date on which the annual report was approved to publish is as follows: Unit: 100 million Yuan Currency: RMB Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Qualified Investors (Second tranche) 20 Huatai G3 163482.SH 2020-4-27 2020-4-29 2025-4-29 35 2.90 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Financing Services, CICC, CDB Securities Shenwan Hongyuan Securities For qualified investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 281 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Qualified Investors (Third tranche) 20 Huatai G4 163558.SH 2020-5-19 2020-5-21 2025-5-21 30 3.20 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Financing Services, CICC, CDB Securities Shenwan Hongyuan Securities For qualified investors Matching, one- click-order, price-enquiry, bidding and negotiating 2020 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 20 Huatai C1 175409.SH 2020-11-11 2020-11-13 2025-11-13 50 4.48 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 282 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2021 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 21 Huatai C1 175721.SH 2021-1-27 2021-1-29 2026-1-29 90 4.50 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) 21 Huatai G4 188106.SH 2021-5-13 2021-5-17 2026-5-17 60 3.71 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) (Type II) 21 Huatai G6 188140.SH 2021-5-20 2021-5-24 2026-5-24 20 3.63 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 283 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) (Type II) 21 Huatai 12 188325.SH 2021-9-3 2021-9-7 2031-9-7 27 3.78 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 21 Huatai Y1 188785.SH 2021-9-15 2021-9-17 N/A 30 3.85 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type II) 21 Huatai 14 188875.SH 2021-10-14 2021-10-18 2031-10-18 34 3.99 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 284 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type II) 21 Huatai 16 188927.SH 2021-10-21 2021-10-25 2031-10-25 11 3.94 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) 21 Huatai Y2 188942.SH 2021-10-26 2021-10-28 N/A 50 4.00 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) 21 Huatai Y3 185019.SH 2021-11-16 2021-11-18 N/A 20 3.80 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 285 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 22 Huatai Y1 185337.SH 2022-1-24 2022-1-26 N/A 27 3.49 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) 22 Huatai Y2 185388. SH 2022-7-7 2022-7-11 N/A 30 3.59 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 22 Huatai G4 137780.SH 2022-9-1 2022-9-5 2025-9-5 20 2.52 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 286 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) 22 Huatai G5 137814.SH 2022-9-8 2022-9-13 2025-9-13 30 2.50 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) 22 Huatai Y3 137604.SH 2022-10-19 2022-10-21 N/A 35 3.20 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type II) 22 Huatai G7 138598.SH 2022-11-17 2022-11-21 2027-11-21 14 3.18 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 287 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type I) 22 Huatai 10 138709.SH 2022-12-8 2022-12-12 2025-12-12 20 3.35 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type II) 22 Huatai 11 138710.SH 2022-12-8 2022-12-12 2027-12-12 5 3.49 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type II) 23 Huatai G3 138845.SH 2023-1-12 2023-1-16 2028-1-16 20 3.48 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 288 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) 23 Huatai G4 138857.SH 2023-2-2 2023-2-6 2026-2-6 45 3.23 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities, Kaiyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 23 Huatai G5 138886.SH 2023-2-9 2023-2-13 2028-2-13 40 3.39 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) (Type I) 23 Huatai G6 138915.SH 2023-2-23 2023-2-27 2026-2-27 15 3.14 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 289 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) (Type II) 23 Huatai G7 138916.SH 2023-2-23 2023-2-27 2028-2-27 22 3.36 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type I) 23 Huatai G8 115346.SH 2023-5-8 2023-5-10 2025-7-10 17 2.82 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type II) 23 Huatai G9 115347.SH 2023-5-8 2023-5-10 2028-5-10 7 3.07 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 290 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) 23 Huatai 10 115367.SH 2023-8-22 2023-8-24 2026-8-24 20 2.64 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 23 Huatai Y1 115931.SH 2023-9-6 2023-9-8 N/A 25 3.46 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC, Shenwan Hongyuan Securities, CDB Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type I) 23 Huatai 11 115368.SH 2023-9-19 2023-9-21 2026-9-21 25 2.89 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 291 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type I) 23 Huatai 13 240068.SH 2023-10-12 2023-10-16 2025-10-16 10 2.8 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type II) 23 Huatai 14 240069.SH 2023-10-12 2023-10-16 2033-10-16 16 3.35 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) 23 Huatai Y2 240109.SH 2023-10-18 2023-10-20 N/A 40 3.58 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC, Shenwan Hongyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 292 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Tenth tranche) (Type I) 23 Huatai 15 240158.SH 2023-11-2 2023-11-6 2026-8-6 10 2.83 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Tenth tranche) (Type II) 23 Huatai 16 240159.SH 2023-11-2 2023-11-6 2033-11-6 25 3.3 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Industrial Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly Issued to Professional Investors (First tranche) (Type II) 23 Huatai F2 253163.SH 2023-11-23 2023-11-27 2026-11-27 28 3.07 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors One-click-order, price-enquiry, bidding and negotiating ![]() 293 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly Issued to Professional Investors (Second tranche) (Type II) 23 Huatai F4 253350.SH 2023-12-13 2023-12-15 2026-12-15 36 3.08 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, Shenwan Hongyuan Securities, CICC Shenwan Hongyuan Securities For professional investors One-click-order, price-enquiry, bidding and negotiating 2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type I) 24 Huatai S2 241797.SH 2024-11-11 2024-11-13 2025-5-13 48 1.9 One-off payment of principal and interest upon expiration Huatai United Securities, Shenwan Hongyuan Securities, CICC, Caitong Securities Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 294 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type II) 24 Huatai S3 241798.SH 2024-11-11 2024-11-13 2025-11-13 10 1.92 One-off payment of principal and interest upon expiration Huatai United Securities, Shenwan Hongyuan Securities, CICC, Caitong Securities Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2024 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 24 Huatai Y1 242041.SH 2024-11-22 2024-11-26 N/A 26 2.39 Interest to be paid annually under the condition that the issuer does not exercise the right to defer interest payments Huatai United Securities, CICC, Shenwan Hongyuan Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) (Type I) 24 Huatai S4 242117.SH 2024-12-6 2024-12-10 2025-6-10 60 1.75 One-off payment of principal and interest upon expiration Huatai United Securities, Shenwan Hongyuan Securities, CICC, Caitong Securities Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 295 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2024 Short-Term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 24 Huatai S6 242135.SH 2024-12-20 2024-12-24 2025-8-24 30 1.67 One-off payment of principal and interest upon expiration Huatai United Securities, Shenwan Hongyuan Securities, CICC, Caitong Securities Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Short-Term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 25 Huatai S1 242235.SH 2025-1-6 2025-1-8 2025-10-16 32 1.6 One-off payment of principal and interest upon expiration Huatai United Securities, Shenwan Hongyuan Securities, CICC, Caitong Securities Shenwan Hongyuan Securities For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) (Type I) 25 Huatai G1 242331.SH 2025-1-23 2025-2-5 2026-4-5 18 1.85 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type I) 25 Huatai G3 242497.SH 2025-2-25 2025-2-27 2027-2-27 30 2.05 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 296 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type II) 25 Huatai G4 242498.SH 2025-2-25 2025-2-27 2028-2-27 19 2.05 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) (Type I) 25 Huatai G5 242532.SH 2025-3-4 2025-3-6 2026-6-6 20 2.05 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating ![]() 297 Name of bond Abbreviation Code Issue date Value date Expiration date Balance Interest Rate (%) Principal and interest payment method Lead underwriter Entrusted manager Arrangements for investors’ appropriateness (if any) Trading mechanism 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) (Type II) 25 Huatai G6 242533.SH 2025-3-4 2025-3-6 2027-9-6 27 2.05 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 25 Huatai G7 242601.SH 2025-3-13 2025-3-17 2026-4-17 50 2.03 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating 2025 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) 25 Huatai G8 242602.SH 2025-3-20 2025-3-24 2026-8-24 36 2.02 Interest to be paid annually and one-off payment of principal upon expiration with the last instalment of interest to be paid together with the principal payment Huatai United Securities, CICC, Shenwan Hongyuan Securities, China Merchants Securities CICC For professional investors Matching, one- click-order, price-enquiry, bidding and negotiating Notes: 1. The trading market of the above-mentioned corporate bonds was the Shanghai Stock Exchange. 2. The above-mentioned corporate bonds were not exposed to the risk of delisting. 3. None of the above-mentioned corporate bonds had put option provisions, and there will be no put dates after April 30, 2025. 4. As at the date on which this report was approved to publish, the Group had no bonds for ordinary investors. ![]() 298 Interest payment for bonds during the Reporting Period is as follows: Name of bond Redemption and interest payment 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in January 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type I) Interest paid on time and in full in January 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) (Type II) Interest paid on time and in full in January 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Principal repaid and interest paid on time and in full in January 2024 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in January 2024 2021 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in January 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Interest paid on time and in full in February 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in February 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) Interest paid on time and in full in February 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) (Type I) Interest paid on time and in full in February 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) (Type II) Interest paid on time and in full in February 2024 2023 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) Principal repaid and interest paid on time and in full in March 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) Principal repaid and interest paid on time and in full in April 2024 2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Qualified Investors (Second tranche) Interest paid on time and in full in April 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type I) Interest paid on time and in full in May 2024 ![]() 299 Name of bond Redemption and interest payment 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type II) Interest paid on time and in full in May 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Interest paid on time and in full in May 2024 2020 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Qualified Investors (Third tranche) Interest paid on time and in full in May 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) (Type I) Principal repaid and interest paid on time and in full in May 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) (Type II) Interest paid on time and in full in May 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) (Type I) Principal repaid and interest paid on time and in full in June 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type I) Principal repaid and interest paid on time and in full in June 2024 2023 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) Principal repaid and interest paid on time and in full in July 2024 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) Interest paid on time and in full in July 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) Principal repaid and interest paid on time and in full in August 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Principal repaid and interest paid on time and in full in August 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) Interest paid on time and in full in August 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) Interest paid on time and in full in September 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) (Type I) Principal repaid and interest paid on time and in full in September 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) (Type II) Interest paid on time and in full in September 2024 2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in September 2024 ![]() 300 Name of bond Redemption and interest payment 2023 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Principal repaid and interest paid on time and in full in September 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fifth tranche) Interest paid on time and in full in September 2024 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in September 2024 2023 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) Principal repaid and interest paid on time and in full in September 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type I) Interest paid on time and in full in September 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type I) Interest paid on time and in full in October 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type II) Interest paid on time and in full in October 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type I) Principal repaid and interest paid on time and in full in October 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type II) Interest paid on time and in full in October 2024 2022 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Interest paid on time and in full in October 2024 2023 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) Interest paid on time and in full in October 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type I) Principal repaid and interest paid on time and in full in October 2024 2021 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type II) Interest paid on time and in full in October 2024 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) Interest paid on time and in full in October 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Tenth tranche) (Type I) Interest paid on time and in full in November 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Tenth tranche) (Type II) Interest paid on time and in full in November 2024 ![]() 301 Name of bond Redemption and interest payment 2020 Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) Interest paid on time and in full in November 2024 2021 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) Interest paid on time and in full in November 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type I) Principal repaid and interest paid on time and in full in November 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Sixth tranche) (Type II) Interest paid on time and in full in November 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly Issued to Professional Investors (First tranche) (Type II) Interest paid on time and in full in November 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Seventh tranche) (Type I) Principal repaid and interest paid on time and in full in December 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type I) Interest paid on time and in full in December 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Eighth tranche) (Type II) Interest paid on time and in full in December 2024 2023 Corporate Bonds of Huatai Securities Co., Ltd. Non-publicly Issued to Professional Investors (Second tranche) (Type II) Interest paid on time and in full in December 2024 2022 Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Ninth tranche) (Type I) Principal repaid and interest paid on time and in full in December 2024 ![]() 302 2. Triggers and execution of the Company ’ s or investor ’ s option clauses or investor protection clauses 21 Huatai Y1, 21 Huatai Y2, 21 Huatai Y3, 22 Huatai Y1, 22 Huatai Y2, 22 Huatai Y3, 23 Huatai Y1, 23 Huatai Y2 and 24 Huatai Y1 issued by the Company are subject to the issuer’s renewal option, issuer’s redemption right, when certain conditions are met and the right of deferring interest payment. As of the disclosure date of this report, the aforementioned bonds have not triggered the issuer’s renewal, interest step-up and redemption option when certain conditions are met as the exercise date of the issuer’s renewal option and redemption right has not yet reached. During the Reporting Period, the Company did not execute the right of deferring interest payment. The current interests for 21 Huatai Y1, 21 Huatai Y2, 21 Huatai Y3, 22 Huatai Y1, 22 Huatai Y2, 22 Huatai Y3, 23 Huatai Y1 and 23 Huatai Y2 have been paid on time and in full. During the 12 months prior to the annual interest payment date of the aforesaid bonds, the Company triggered a mandatory interest payment event due to dividend distribution to ordinary shareholders and reduction of registered capital, details of which can be found in the respective announcements of the Company. ![]() 303 3. Intermediary agencies to provide services for bond issuance and existing business Name of intermediary agency Office address Name of signatory accountant Contact person Contact number Deloitte Touche Tohmatsu Certified Public Accountants LLP 30/F, 222 Yan An Road East, Shanghai Hu Xiaojun, Han Jian Hu Xiaojun 021-61418888 KPMG Huazhen LLP 8/F, KPMG Tower, Oriental Plaza, No. 1 East Chang’an Avenue, Beijing Cheng Hailiang, Zou Jun Zhang Nan 021-22123075 Other intermediary agencies to provide services for the above bond issuance and existing business are as below: Intermediary agency Name Office address Contact person Contact number Lead Underwriter Huatai United Securities Co., Ltd. 5/F, Building 1, Huatai Securities Square, No. 228 Middle Jiangdong Road, Nanjing Wang Chengcheng, Cui Yue 025-83387750 Shenwan Hongyuan Securities Co., Ltd. 45/F, No. 989 Changle Road, Xuhui District, Shanghai Liu Qiuyan, Zheng Jianrui 021-33388507 021-33388508 China International Capital Corporation Limited 33/F, Tower 2, China World Office, No. 1 Jianguomenwai Avenue, Chaoyang District, Beijing Liu Liu 010-65051166 China Merchants Securities Co., Ltd. No. 111 Fuhua 1st Road, Futian District, Shenzhen, Guangdong Province Lin Chiheng, Liu Chen 0755-83081361 China Development Bank Securities Company Limited 1-9/F, No. 29 Fuchengmen Wai Avenue, Xicheng District, Beijing Bao Hong 010-88300840 China Industrial Securities Co., Ltd. ( 興業證券股份 有限公司 ) 32/F, SK Tower, Building 1, 6A Jianguomenwai Avenue, Chaoyang District, Beijing Tao Jian 13581681404 Kaiyuan Securities Co., Ltd. ( 開源證券股份有限公司 ) 2/F, Kaiyuan Securities Wealth Management Center, No. 62 Furong West Road, Yanta District, Xi’an, Shaanxi Province Xu Mengyuan 029-81208821 Caitong Securities Co., Ltd. ( 財通證券股份有限公司 ) West Tower, Caitong Shuangguan Building, No. 198 Tianmushan Road, Xihu District, Hangzhou, Zhejiang Province Xu Zongxuan, Zhang Zhening, Wang Wenxu, Zhang Yifei 0571-87821802 ![]() 304 Intermediary agency Name Office address Contact person Contact number Entrusted manager Central China Securities Co., Ltd. ( 中原證券股份有限 公司 ) 10 Business Outer Ring Road, Zhengdong New District, Zhengzhou Gao Lingfang 021-50581985 Shenwan Hongyuan Securities Co., Ltd. 45/F, No. 989 Changle Road, Xuhui District, Shanghai Zheng Jianrui 021-33388507 021-33388508 China International Capital Corporation Limited China World Office, No. 1 Jianguomenwai Avenue, Beijing Liu Liu 010-65051166 Credit rating agencies China Lianhe Credit Rating Co., Ltd. 17/F, Tower 2, No. 2 Jianguomenwai Avenue, Chaoyang District, Beijing Jiang Yujia 010-85679696 Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. 14/F, Huasheng Mansion, No. 398 Hankou Road, Shanghai Gao Fei 021-63501349- 637 Law firms JC Master Law Offices 9/F, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing Yin Tingting 025-84503333 Zhong Lun Law Firm 22-31/F, South Tower of Building 3, CP Center, No. 20 Jinhe East Road, Chaoyang District, Beijing Guo Zhi 025-69511868 AllBright Law Offices 9, 11, 12/F, Shanghai Tower, No. 501 Middle Yincheng Road, Pudong New Area, Shanghai Sun Zuan, Bai Xue 021-20511000 King & Wood Mallesons 17-18/F, East Tower, World Financial Center 1, No. 1 Middle East 3rd Ring Road, Chaoyang District, Beijing Yao Lei 021-24126099 Note: Certain bond issuances were underwritten by Shenwan Hongyuan Financing Services Co., Ltd. (hereinafter referred to as “Shenwan Hongyuan Financing Services”). Due to changes in the business scope of Shenwan Hongyuan Securities Co., Ltd. (hereinafter referred to as “Shenwan Hongyuan Securities”), the original bond underwriting business, except for convertible corporate bonds, of Shenwan Hongyuan Financing Services was included into the business scope of Shenwan Hongyuan Securities. For the above changes in business scope, relevant authorities had issued approval. Therefore, the original rights and obligations under the agreement entered into by Shenwan Hongyuan Financing Services have succeeded to Shenwan Hongyuan Securities. There were no changes in the above intermediary agencies during the Reporting Period. 4. Adjustments to the credit ratings During the Reporting Period, the rating agencies did not make any adjustments to the ratings. ![]() 305 5. Changes, variations and implementation of guarantees, debt repayment plan and other debt repayment guarantee measures and their impact during the Reporting Period Current status Implementation Any change As of the end of the Reporting Period, the existing corporate bonds of the Company are issued without guarantee and are subject to the debt repayment plan in accordance with the covenants in the prospectuses for corporate bonds. According to the covenants in the prospectuses for corporate bonds, the Company has settlement safeguards in place, including but not limited to setting up terms of settlement safeguards undertaking and relief measures for the issuer, formulating the Rules for Meeting of Bondholders, entrusting bond manager, strictly performing the obligations of information disclosure and setting up a special debt repayment account. During the Reporting Period, the Company strictly performed the covenants in the prospectuses in relation to investor protection mechanism, paid the interest and/ or principal for the corporate bonds in full as scheduled, and disclosed relevant information on the Company in a timely manner to protect the legal interest of investors. No (III) Funds raised from corporate bonds The corporate bonds involved in the use of funds raised during the Reporting Period, and the utilization of funds raised is as follows: 1. Basic information Unit: 100 million Yuan Currency: RMB Code of bond Abbreviation of bond Whether it is a special type of bond Specific type of special type of bond Total amount of funds raised Balance of funds raised as at the end of the Reporting Period Balance of specific accounts of funds raised as at the end of the Reporting Period 241764.SH 24 Huatai S1 Yes Short-term corporate bond 20 – – 241797.SH 24 Huatai S2 Yes Short-term corporate bond 48 – – 241798.SH 24 Huatai S3 Yes Short-term corporate bond 10 – – 242041.SH 24 Huatai Y1 Yes Perpetual subordinated bond 26 – – 242117.SH 24 Huatai S4 Yes Short-term corporate bond 60 – – 242135.SH 24 Huatai S6 Yes Short-term corporate bond 30 – – ![]() 306 2. Change and adjustment of use of funds raised There were no changes in the use of funds raised during the Reporting Period. 3. Utilization of funds raised (1) Actual utilization (excluding temporary replenishment of liquidity here) Unit: 100 million Yuan Currency: RMB Code of bond Abbreviation of bond Actual utilized amount of funds raised during the Reporting Period Repayment of interest-bearing debts (excluding corporate bonds) and amount involved Repayment of corporate bonds and amount involved Replenishment of liquidity and amount involved Investments in fixed asset projects and amount involved Other use and amount involved 241764.SH 24 Huatai S1 20 – – 20 – – 241797.SH 24 Huatai S2 48 – – 48 – – 241798.SH 24 Huatai S3 10 – – 10 – – 242041.SH 24 Huatai Y1 26 – – 26 – – 242117.SH 24 Huatai S4 60 – – 60 – – 242135.SH 24 Huatai S6 30 – – 30 – – (2) Funds raised were not utilized for specific projects. (3) Funds raised were not used for temporary replenishment of liquidity. 4. Compliance of utilization of funds raised Code of bond Abbreviation of bond Actual use of funds raised as at the end of the Reporting Period (including actual utilization and temporary replenishment of liquidity) Whether the actual use is consistent with the agreed use (including the agreed use in the prospectus and the use after compliance changes) Whether the utilization of funds raised and the management of the specific accounts of funds raised were in compliance during the Reporting Period Whether the utilization of funds raised complied with local government debt management regulations 241764.SH 24 Huatai S1 Replenishment of working capital Yes Yes N/A 241797.SH 24 Huatai S2 Replenishment of working capital Yes Yes N/A 241798.SH 24 Huatai S3 Replenishment of working capital Yes Yes N/A 242041.SH 24 Huatai Y1 Replenishment of working capital Yes Yes N/A 242117.SH 24 Huatai S4 Replenishment of working capital Yes Yes N/A 242135.SH 24 Huatai S6 Replenishment of working capital Yes Yes N/A The management and utilization of the accounts of funds raised were in compliance with the regulations and there was no violation of laws and regulations during the Reporting Period. ![]() 307 (IV) Other matters to be disclosed in respect of special types of bonds 1. The Company being an issuer of renewable corporate bonds Unit: 100 million Yuan Currency: RMB Code of bond 188785.SH Abbreviation of bond 21 Huatai Y1 Balance of bond 30 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No Code of bond 188942.SH Abbreviation of bond 21 Huatai Y2 Balance of bond 50 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No ![]() 308 Code of bond 185019.SH Abbreviation of bond 21 Huatai Y3 Balance of bond 20 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No Code of bond 185337.SH Abbreviation of bond 22 Huatai Y1 Balance of bond 27 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No Code of bond 185388.SH Abbreviation of bond 22 Huatai Y2 Balance of bond 30 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No ![]() 309 Code of bond 137604.SH Abbreviation of bond 22 Huatai Y3 Balance of bond 35 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No Code of bond 115931.SH Abbreviation of bond 23 Huatai Y1 Balance of bond 25 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No Code of bond 240109.SH Abbreviation of bond 23 Huatai Y2 Balance of bond 40 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No ![]() 310 Code of bond 242041.SH Abbreviation of bond 24 Huatai Y1 Balance of bond 26 Renewal The issuer’s renewal option has not been exercised Interest step-up Not triggered Interest deferral Not triggered Enforcement of interest payment The issuer distributed dividends to ordinary shareholders and reduced registered capital during the 12 months prior to the interest payment date, and the issuer has paid the current interest on the bonds on time and in full Whether they are still included in equity or not and corresponding accounting treatment Yes Other matters No 2. Matters on other special types of corporate bonds No. (V) Major events in relation to corporate bonds during the Reporting Period 1. Balance and breakdown of non-operating transaction appropriation and capital placements As at the beginning of the Reporting Period, receivable balance of the transaction appropriation to other parties that were not directly attributable to operation and the capital placements (the “non-operating transaction appropriation and capital placements”) of the Group was RMB160,500; During the Reporting Period, there was no non-compliance of non-operating transaction appropriation and capital placements by the Group with relevant agreements or commitments as set out in the prospectuses. As at the end of the Reporting Period, total outstanding non-operating transaction appropriation and capital placements of the Group amounted to RMB251,100, and its percentage to the net assets on a consolidated basis was 0%, which did not exceed 10% of the net assets on a consolidated basis. ![]() 311 2. Liabilities (1) Interest-bearing debts and changes therein 1.1 Debt structure of the Company As at the beginning and the end of the Reporting Period, the interest-bearing debt balance of the Company were RMB303.663 billion and RMB250.918 billion, respectively. The interest-bearing debt balance as at the end of the Reporting Period decreased by 17.37% as compared to the beginning of the Reporting Period. Unit: 100 million Yuan Currency: RMB Type of interest-bearing debts Time to maturity Total amount Proportion of amount to Overdue Within 1 year (inclusive) Over 1 year (exclusive) interest-bearing debts (%) Corporate credit bonds – 483.23 581.11 1,064.34 42.42 Bank loans – – – – – Loans from non-bank financial institutions – – – – – Other interest-bearing debts – 1,433.93 10.91 1,444.84 57.58 Total – 1,917.16 592.02 2,509.18 – Notes: 1. Other interest-bearing debts include placement from other financial institutions, financial assets sold under repurchase agreements and etc. 2. The above interest-bearing debts exclude perpetual subordinated bonds that were included in other equity instruments with closing principal amount of RMB28.3 billion and opening principal amount of RMB25.7 billion. Among the corporate credit bonds of the Company in duration as at the end of the Reporting Period, the balance of corporate bonds was RMB106.434 billion, and a total of RMB36.254 billion of corporate credit bonds will mature or can be sold back between April and December 2025. ![]() 312 1.2 Interest-bearing debt structure of the Group As at the beginning and the end of the Reporting Period, the interest-bearing debt balance of the Group were RMB385.987 billion and RMB303.827 billion, respectively. The interest-bearing debt balance as at the end of the Reporting Period decreased by 21.29% as compared to the beginning of the Reporting Period. Unit: 100 million Yuan Currency: RMB Time to maturity Proportion of amount to Type of interest-bearing debts Overdue Within 1 year (inclusive) Over 1 year (exclusive) Total amount interest-bearing debts (%) Corporate credit bonds – 606.16 734.12 1,340.28 44.11 Bank loans – 33.63 – 33.63 1.11 Loans from non-bank financial institutions – – – – – Other interest-bearing debts – 1,641.69 22.67 1,664.36 54.78 Total – 2,281.48 756.79 3,038.27 – Notes: 1. Other interest-bearing debts include placement from other financial institutions, financial assets sold under repurchase agreements and etc. 2. The above interest-bearing debts exclude perpetual subordinated bonds that were included in other equity instruments with closing principal amount of RMB28.3 billion and opening principal amount of RMB25.7 billion. Among the corporate credit bonds of the Group in duration as at the end of the Reporting Period, the balance of corporate bonds was RMB106.452 billion, and a total of RMB41.302 billion of corporate credit bonds will mature or can be sold back between April and December 2025. 1.3 Offshore bonds As of the end of the Reporting Period, the balance of offshore bonds issued by the Group was RMB27.576 billion, and a total of RMB5.047 billion of offshore bonds will mature or can be sold back between April and December 2025. ![]() 313 (2) As at the end of the Reporting Period, the Group had no overdue interest-bearing debts or corporate credit bonds with an overdue amount of more than RMB10 million. (3) Major liabilities and reasons for their changes For major liabilities and reasons for their changes, please refer to “General description of consolidated statement of financial position” under “Analysis of key items of consolidated statement of financial position” of “Major Operations during the Reporting Period” in “Management Discussion and Analysis and Report of the Board” in this report. (4) Prioritized repayments of liabilities against any third person As of the end of the Reporting Period, there were no prioritized repayments of liabilities by the Group against any third person. ![]() 314 (VI) During the Reporting Period, the Company did not have any non-financial corporate debt financing instruments in the inter-bank bond market (VII) During the Reporting Period, the Company did not record a loss in the consolidated statements exceeding 10% of the net assets at the end of the previous year (VIII) Interest-bearing debt (other than bonds) overdue at the end of the Reporting Period The Company enjoyed a good reputation, and repaid matured debts and paid interests on time without any overdue debts during the Reporting Period. For details of the issuance and payment of interest for corporate bonds and debt financing instruments, please refer to “The Issuance and Listing of Securities” under “Changes in Shares and Shareholders” in this report and “Basic information on corporate bonds” under “Corporate Bonds” in this section. (IX) The impacts of non-compliance with laws and regulations, the Articles of Association, the management measures for information disclosure and violation of relevant covenants or undertakings in the prospectuses for bonds on the interests of bond investors during the Reporting Period During the Reporting Period, the Company complied with laws and regulations, the Articles of Association and the management measures for information disclosure, strictly performed its obligations of information disclosure and paid the interest for the bonds on time to protect the legitimate interest of investors. In addition, the Company strictly performed the relevant covenants or undertakings in the prospectus for corporate bonds, and the usage of the funds raised was in line with the covenants in the prospectus. During the Reporting Period, the Company did not default on the redemption and interest payment of issued bonds, and operated stably with satisfactory earnings and there is no risk of the Company failing to make payments on time in the future. ![]() 315 (X) Accounting data and financial indicators of the Company for the past two years up to the end of the Reporting Period Unit: Thousand Yuan Currency: RMB Primary indicators 2024 2023 Year-on-year change (%) Reason for the change Net profit after extraordinary profit and loss attributable to shareholders of the listed company 9,033,781 12,886,560 -29.90 Year-on-year increase in extraordinary profit and loss due to disposal of subsidiaries Current ratio 1.46 1.38 5.80 – Quick ratio 1.46 1.38 5.80 – Gearing ratio (%) 69.53 76.05 Decreased by 6.52 percentage points – EBITDA to total debt ratio (%) 8.00 6.67 Increased by 1.33 percentage points – Times interest earned 2.53 2.10 20.48 – Times cash-interest earned 3.52 -1.11 N/A – Times interest earned of EBITDA 2.71 2.25 20.44 – Loan repayment ratio (%) 100 100 0.00 – Interest payment ratio (%) 100 100 0.00 – Note: Customer’s funds are not included in the above-mentioned indicators. II. THE COMPANY HAD NO CONVERTIBLE CORPORATE BONDS DURING THE REPORTING PERIOD ![]() 316 III. STRUCTURED NOTES (I) Matters on structured notes In 2023, the Company issued a total of 3,563 structured notes through the China Securities Institutional Trading & Quotation System and OTC market, with a total issuance amount of RMB21.189 billion. As of December 31, 2023, 1,064 structured notes continued to exist with a total scale of RMB13.562 billion. In 2024, the Company issued a total of 2,891 structured notes through the China Securities Institutional Trading & Quotation System and OTC market, with a total issuance amount of RMB32.061 billion. A total of 3,583 structured notes were paid, with a total payment amount of RMB25.382 billion. During the Reporting Period, all of the due structured notes of the Company were paid as agreed. As of December 31, 2024, 372 structured notes continued to exist with a total scale of RMB20.241 billion. (II) Major events During the Reporting Period, the Company strictly implemented the requirements under the Guidelines on Information Disclosure of Structured Notes of Securities Companies ( 《證券公 司收益憑證信息披露指引》 ), and details of disclosures of relevant major events can be found in “Appendix IV. Information Disclosures Index”. (III) Risks 1. Company credit risks The Company has a robust organizational structure, a sound decision-making authorization system and a rigorous internal control system. During the Reporting Period, the Company operated in compliance with regulations, enjoyed a good reputation as well as strong capital strength, profitability and debt repayment ability. 2. Liquidity risks The Company has incorporated structured notes into its overall debt financing management, made uniform arrangements for the financing limit and maturity structure, and established a unified limit authorization and management mechanism at the corporate level to conduct daily monitoring on liquidity gaps to ensure the Company’s liquidity safety. During the Reporting Period, the liquidity of the Company was in good condition and due structured notes were paid on time without any liquidity risk. ![]() 317 3. Other risks The Company has issued floating structured notes, and part of the embedded derivatives has been integrated into the Company’s derivatives compliance and risk control system for unified management in all aspects of derivatives design, hedging transactions, risk exposure and limit management. Details of risks of the Company can be found in “Potential risks” under “Discussion and Analysis of the Company’s Future Development” of “Management Discussion and Analysis and Report of the Board”. ![]() 318 INDEX OF DOCUMENTS FOR INSPECTION Index of Documents for Inspection Financial statements carrying the signature and seal of the Company’s legal representative, person in charge of accounting and head of accounting department Audit report carrying the seal of the accounting firm and the signature and seal of the certified public accountant Original copies of all documents and announcements of the Company publicly disclosed during the Reporting Period Articles of Association ![]() 319 INFORMATION DISCLOSURE OF SECURITIES COMPANIES I. MAJOR ADMINISTRATIVE APPROVALS OF THE COMPANY 1. Approval for the Registration of Public Issuance of Corporate Bonds to Professional Investors by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2024] No. 416) dated March 11, 2024. 2. Approval for the Registration of Public Issuance of Subordinated Corporate Bonds to Professional Investors by Huatai Securities Co., Ltd. (Zheng Jian Xu Ke [2024] No. 1109) dated July 31, 2024. ![]() 320 APPENDIX I. MAIN BUSINESS QUALIFICATIONS The Company was entitled to become the members of the Shanghai Stock Exchange, the Shenzhen Stock Exchange and Beijing Stock Exchange, and Securities Association of China, to engage in the clearing of warrants of China Securities Depository and Clearing Corporation Limited and to participate in the clearing of China Securities Depository and Clearing Corporation Limited. Besides, the Company also has the following main business qualifications: No. Type of License Approval Department Years 1 National interbank market access qualification PBOC January 2000 2 Qualification for online entrusted securities brokerage business CSRC May 2001 3 Qualification for distributing open-end securities investment funds CSRC February 2003 4 Qualification for entrusted investment management business CSRC March 2003 5 Value-added telecommunications business license Jiangsu Communications Administration July 2004 6 Pilot securities firm for relevant innovative activities Securities Association of China March 2005 7 Qualification for underwriting short-term financing bills PBOC August 2005 8 License for foreign exchange operation in the securities business State Administration of Foreign Exchange November 2006 9 Foreign exchange registration certificate for overseas investment Jiangsu Provincial Bureau of SAFE December 2006 10 Qualification for agency business of stock transfer Securities Association of China June 2007 11 Qualification of tier-1 dealer on the integrated e-platform for fixed income securities Shanghai Stock Exchange August 2007 12 Qualified domestic institutional investor (QDII) qualification for overseas securities investment management business CSRC December 2007 13 Qualification to provide intermediary introduction business for Great Wall Weiye Futures Co., Ltd. CSRC April 2008 14 Qualified investor qualification in block trade system Shanghai Stock Exchange June 2008 15 Qualification to incorporate wholly-owned specialized subsidiaries to engage in direct investment business CSRC July 2008 16 Obtain a stock index futures trading code and a hedging limit China Financial Futures Exchange June 2010 17 Pilot program of securities margin trading CSRC June 2010 18 Qualification of the dealer for credit risk mitigation tools and creator for credit risk mitigation certificates National Association of Financial Market Institutional Investors December 2010 ![]() 321 No. Type of License Approval Department Years 19 Change the securities brokerage business (the business in Jiangsu, Shanghai, Zhejiang, Anhui, Shandong, Heilongjiang, Jilin, Liaoning, Beijing, Tianjin, Hebei, Henan, Shaanxi, Shanxi, Ningxia, Inner Mongolia, Gansu, Xinjiang, Qinghai only) within the original business scope to securities brokerage business, change the securities underwriting and sponsorship business (the relevant business on the Shanghai Stock Exchange only) to securities underwriting business (the underwriting of government bonds, debt financing instruments of non-financial enterprises only), and reduce the financial advisory business relating to securities trading and securities investment activities CSRC August 2011 20 Provide trading seats to insurance institutional investors China Insurance Regulatory Commission January 2012 21 Pilot program of bonds collateralized quotation repurchase business CSRC January 2012 22 Bonds collateralized quotation repurchase business Shanghai Stock Exchange February 2012 23 CSI 300ETF liquidity service provider Shanghai Stock Exchange May 2012 24 Innovative brokerage deposit business CSRC June 2012 25 Participate in interest rate swap trading by using the Company’s proprietary funds Jiangsu Securities Regulatory Bureau August 2012 26 Pilot program of margin refinancing China Securities Finance Corporation Limited August 2012 27 Pilot program of agreed repurchase type securities trading CSRC September 2012 28 Lead underwriting business for non-financial enterprises debt financing instruments in the interbank market National Association of Financial Market Institutional Investors November 2012 29 Qualification and transaction code for conducting arbitrage and speculative trading of CSI 300 index-futures China Financial Futures Exchange December 2012 30 Agency sale of financial products Jiangsu Securities Regulatory Bureau January 2013 31 Qualification for the agreed repurchase type securities trading business Shenzhen Stock Exchange January 2013 32 Pilot comprehensive custody business for private funds, which can provide comprehensive custody services, such as asset custody, settlement, computation of net value, investment control, custody report and etc., for private securities investment funds (limited partnership) Institutional Supervision Department of the CSRC February 2013 33 Qualification of margin refinancing business China Securities Finance Corporation Limited February 2013 34 Insurance fund investment manager China Insurance Regulatory Commission March 2013 ![]() 322 No. Type of License Approval Department Years 35 Operate recommendation and brokerage business on the National Equities Exchange and Quotations as the lead securities firm National Equities Exchange and Quotations Company Limited March 2013 36 Qualification to submit filing materials for witnessing the opening of customers’ securities accounts China Securities Depository and Clearing Corporation Limited April 2013 37 Qualification of financial bonds (including policy finance bonds) underwriting business Jiangsu Securities Regulatory Bureau June 2013 38 Conducting stock pledge-style repo transaction business for securities listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange Shanghai Stock Exchange and Shenzhen Stock Exchange June 2013 39 Treasury bonds futures business Jiangsu Securities Regulatory Bureau September 2013 40 Qualification to conduct treasury bonds futures arbitrage and hedging businesses CSRC and China Financial Futures Exchange September 2013 41 Qualification to conduct asset management share transfer business Shenzhen Stock Exchange September 2013 42 Qualification to carry out equity return swaps business Securities Association of China September 2013 43 Qualification to conduct pre-issuance of treasury bonds Shanghai Stock Exchange October 2013 44 Pass the on-site inspection on stock options Shanghai Stock Exchange June 2014 45 Operate market-making business on the National Equities Exchange and Quotations as a market maker, namely market-making qualification on the National Equities Exchange and Quotations National Equities Exchange and Quotations Company Limited July 2014 46 Trial market maker on the interbank market National Inter-Bank Funding Center July 2014 47 Pilot program of financing by exercising the share incentive scheme business Shenzhen Stock Exchange August 2014 48 Qualification of capital payment services for clients that could provide various payment services for investors such as deposits collection, mobile recharging, online store consumption, sales return, water fee and credit card payment Securities Fund Supervision Department of the CSRC August 2014 49 Qualification of custodian for securities investment funds CSRC September 2014 50 Qualification for pilot operations of Internet-based securities business Securities Association of China September 2014 51 OTC qualification Securities Association of China September 2014 52 Qualification to conduct Southbound trading under A Shares trading seats Shanghai Stock Exchange October 2014 53 Pilot program on the OTC market Securities Association of China October 2014 ![]() 323 No. Type of License Approval Department Years 54 Pilot program of restricted securities lending under share incentive schemes of listed companies Shenzhen Stock Exchange December 2014 55 Qualification of practicing on an authentic basis and brokerage business for stock option businesses Shenzhen Stock Exchange December 2014 56 Qualification for stock option trading participant, stock option brokerage and proprietary business trading Shanghai Stock Exchange January 2015 57 Qualification for stock options market making business CSRC January 2015 58 Main market maker of SSE 50ETF option contracts Shanghai Stock Exchange January 2015 59 Qualification of standard interest rate swap and forward centralized settlement of standard bonds Shanghai Clearing House April 2015 60 Qualification of participating in the net settlement of bond trade Shanghai Clearing House April 2015 61 Provide private equity with valuation and calculation service, share registration service, sales backstage service support and other outsourcing services, as well as other value- added services derived from the above services Asset Management Association of China April 2015 62 Qualification of pilot innovative business for one- way video verification of investors’ identities China Securities Depository and Clearing Corporation Limited June 2015 63 Permission to conduct Southbound trading under Shenzhen-Hong Kong stock connect Shenzhen Stock Exchange November 2016 64 Agency qualification for subscription, purchasing and redeeming of gold ETF in spot Shanghai Gold Exchange June 2017 65 Pilot program of cross-border business CSRC December 2017 66 Qualification of tier-1 dealer on OTC options CSRC July 2018 67 Carry out credit derivatives business CSRC December 2018 68 Qualification of main market maker of funds listed on the SSE Shanghai Stock Exchange January 2019 69 Conducting credit protection contract business Shanghai Stock Exchange February 2019 70 Conducting market making business of treasury bond futures CSRC May 2019 71 Pilot Program of Foreign Exchange Settlement and Sales Business State Administration of Foreign Exchange August 2019 72 Conducting credit protection certificate business Shanghai Stock Exchange December 2019 73 Conducting market making business of commodity options CSRC December 2019 74 Conducting market making business of stock index options CSRC December 2019 75 Conducting pilot fund investment advisory business CSRC February 2020 ![]() 324 No. Type of License Approval Department Years 76 Conducting agency for trading of foreign exchange Business State Administration of Foreign Exchange July 2020 77 Conducting market making business of commodity futures CSRC January 2021 78 Conducting pilot business of account management function optimization CSRC November 2021 79 Engaging in “Southbound Trading” business PBOC December 2021 80 Qualification for tier-1 dealer on commodity swap business Shanghai Futures Exchange July 2022 81 Qualification for market making and trading business of listed securities CSRC September 2022 82 Proprietary participation in carbon emissions trading CSRC January 2023 In 2024, the individual business qualifications obtained by the Company mainly include 1 Participation in Securities, Funds and Insurance Companies Swap Facility (SFISF) business CSRC October 2024 2 Pilot participation in the “Cross-boundary Wealth Management Connect” business The PBOC Guangdong Branch, Shenzhen Branch, the CSRC Guangdong Regulatory Bureau, Shenzhen Regulatory Bureau November 2024 ![]() 325 II. LIST OF BRANCH OFFICES AND SECURITIES BRANCHES 1. Establishment of Securities Branch Offices of the Company As of the end of the Reporting Period, the basic information of the establishment of securities branch offices of the Company is as follows: Unit: Ten Thousand Yuan Currency: RMB No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 1 Anhui Branch 6/F & 7/F, Block A, Feili Shidai Square Commercial Complex, No. 310 Suixi Road, Luyang District, Hefei August 25, 2014 10,000 230011 Li Jing 0551-64297088 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending; agency sale of securities investment funds; agency sale of financial products. 2 Beijing Branch Room 1501, 15/F, Block 28, Fengsheng Hutong, Xicheng District, Beijing May 28, 2010 500 100032 Wang Yujie 010-63211388 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending; agency sale of securities investment funds; agency sale of financial products. 3 Changzhou Branch No. 9, North Heping Road, Changzhou April 16, 2014 2,000 213003 Yuan Hongbin 0519-81006688 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending; agency sale of securities investment funds; agency sale of financial products. ![]() 326 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 4 Fujian Branch Units 10D, 10C Block A, Tefang Portman Wealth Center, No. 81 Zhanhong Road, Siming District, Xiamen September 18, 2014 2,000 361004 Ren Qiaojian 0592-5918981 Securities brokerage; securities investment consulting; agency sale of securities investment funds; margin financing and securities lending business; agency sale of financial products; securities underwriting (limited to ancillary works such as project contracting, project information transmission and recommendation and customer relationship maintenance of underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only). 5 Guangdong Branch Units 02 & 03, 36/F, No. 10 Huaxia Road, Tianhe District, Guangzhou May 19, 2012 500 510620 Liu Yong 020-88830128 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending; agency sale of securities investment funds; agency sale of financial products. 6 Henan Branch No. 16, Nongye Road East, Jinshui District, Zhengzhou April 16, 2014 2,000 450008 Fan Hao 0371-60958336 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. ![]() 327 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 7 Heilongjiang Branch 3/F, Block B, Aocheng International, No. 239 Xuanhua Street, Nangang District, Harbin, Heilongjiang Province May 28, 2010 500 150001 Wang Haibin 0451-51994000 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products; management of local business departments. 8 Hubei Branch 24/F, Unit 6, Building 6-7, Wuhan 1818 Center (Phase 2), No. 109 Zhongbei Road, Shuiguohu Street, Wuchang District, Wuhan March 19, 2012 500 430070 Min Jie 027-87739318 Securities brokerage; securities investment consulting; securities underwriting (limited to ancillary works such as project contracting, project information transmission and recommendation and customer relationship maintenance of underwriting of government bonds, debt financing instruments of non- financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products; management of securities branches at Hubei of Huatai Securities Co., Ltd. 9 Hunan Branch Rooms 1301-1305 & 1313-1316, Buildings 4 & 5, Huayuanhua Center, No 36, Section 2, Middle Xiangjiang Road, Tianxin District, Changsha, Hunan Province May 27, 2014 500 410015 Deng Jing 0731-85120568 Securities brokerage; securities investment consulting; agency sale of securities investment funds; margin financing and securities lending business; agency sale of financial products; securities underwriting and sponsoring (limited to ancillary works such as project contracting, project information transmission and recommendation and customer relationship maintenance). ![]() 328 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 10 Jiangxi Branch Shop -3#, No. 101, 1/F, Podium Building, and Nos. 1603, 1604, 1605, 1606, 1607, 16/F, Office Building, Publishing Center, No. 95 Lijing Road, Honggutan District, Nanchang City, Jiangxi Province November 3, 2014 500 330002 Zheng Chengbin 0791-88288255 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; intermediary introduction business for the futures companies; agency sale of financial products; management of securities branches at Jiangxi. 11 Liaoning Branch Units 1, 2, 3 and 4, 15/F, Block B, Enterprise Square, No. 125 Qingnian Street, Shenhe District, Shenyang City, Liaoning Province June 3, 2011 500 110004 Chen Min 024-31881777 Securities brokerage; securities investment consulting; margin financing and securities lending business; agency sale of securities investment funds; intermediary introduction business for the futures companies; agency sale of financial products; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy- bank bonds) only). 12 Nanjing Branch No. 90 Zhongshan Road East, Qinhuai District, Nanjing, Jiangsu Province April 9, 2010 2,000 210002 Wang Yansheng 025-84791077 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. ![]() 329 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 13 Nantong Branch Fangtian Building, No. 6 Yaogang Road, Nantong, Jiangsu Province May 28, 2010 500 226000 Ruan Jing 0513-85529888 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 14 Shandong Branch Rooms 2101, 2102, 2103, 2104, Block A, Yinfeng Fortune Plaza, No. 1 West Long’ao Road, Longdong Street, Lixia District, Jinan City, Shandong Province April 16, 2014 2,000 250061 Xie Feng 0531-55686555 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 15 Shanghai Branch Room 2201, No. 18 Dongfang Road, China (Shanghai) Pilot Free Trade Zone May 28, 2010 500 200120 Lu Chunguang 021-28972296 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 16 Shenzhen Branch 8A, Fund Mansion, No. 5999, Yitian Road, Lianhua Street, Futian District, Shenzhen March 19, 2012 500 518048 Fei Yangwen 0755-23895899 Securities brokerage; securities underwriting (limited to contracting); securities investment consulting; margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. ![]() 330 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 17 Sichuan Branch Rooms 2503, 2504, 2505, 2506, 2507 and 2508, 25/F, Unit 1, Building 1, China Overseas Chinese Financial Center, No. 33, Jiaozi Avenue, Hitech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone May 19, 2012 500 610091 Li Hui 028-81255398 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 18 Suzhou Branch 4/F & 5/F, No. 102 Xinshi Road, Canglang District, Suzhou May 28, 2010 500 215000 Liu Xiaobing 0512-67579666 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 19 Taizhou Branch No. 22, Yingchun Road West, Hailing District, Taizhou, Jiangsu Province August 4, 2014 2,000 225300 Liang Qiuming 0523-86234237 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. ![]() 331 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 20 Tianjin Branch Block C-I, 5/F, North Finance Building, No. 5 Youyi Avenue, Hexi District, Tianjin May 28, 2010 500 300211 Zhang Feng 022-59657718 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 21 Wuxi Branch No. 325, Jiefang Road West, Wuxi, Jiangsu Province June 11, 2014 2,000 214000 Geng Kun 0510-82723020 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 22 Northwest Branch Room 21401, Unit 2, Building 2, CROSS Wanxianghui, No. 21 Gaoxin Six Road, Zhangba Sub-district Office, High-Tech Zone, Xi’an, Shaanxi Province August 5, 2019 – 710000 Liu Ming 029-88811161 Securities brokerage; securities investment consulting; agency sale of securities investment funds; margin financing and securities lending; agency sale of financial products; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy financial bonds) only). ![]() 332 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 23 Xuzhou Branch 1-1601, Building 6 (previously 9), Area 3, Financial Service Center, Huaihai Economic Zone, No. 1 Qinjun Road, Yunlong District, Xuzhou City April 16, 2014 2,000 221001 Li Yijun 0516-85695618 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 24 Yancheng Branch Room 201, Building 6, Financial City, No. 5 Century Avenue, Yancheng City March 24, 2014 2,000 224002 Dong Kaisong 0515-88216888 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. 25 Yangzhou Branch 2015, 2016, 2017, 2113, 2114, 2115, 2116, 2117, 2118, 2201, 2202, 2219, 2220, 2221, 2222, 2223, 2224, Block 6, Changjian Square, No.276 Jinghuacheng Road, Hanjiang District, Yangzhou City August 4, 2014 2,000 225001 Ji Chunbo 0514-82196688 Securities brokerage; securities investment consulting; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy-bank bonds) only); margin financing and securities lending business; agency sale of securities investment funds; agency sale of financial products. ![]() 333 No Name Address Date of establishment Registered capital (or working capital) Zip code Person in charge Contact number Business scope 26 Yunnan Branch 2505B-2508, 25/ F, China Merchants Bank Tower, No. 1 Chongren Street, Wuhua District, Kunming, Yunnan Province February 25, 2014 500 650021 He Sijiang 0871-65951990 Securities brokerage; securities investment consulting; agency sale of securities investment funds; margin financing and securities lending business; agency sale of financial products; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy- bank bonds) only). 27 Zhejiang Branch Rooms 2801-2808, Xingguangcheng, No.1766 Binsheng Road, Changhe Street, Binjiang District, Hangzhou, Zhejiang Province March 25, 2013 500 310052 Li Xiang 0571-86698700 Securities brokerage; securities investment consulting; agency sale of securities investment funds; margin financing and securities lending business; agency sale of financial products; securities underwriting (limited to underwriting of government bonds, debt financing instruments of non-financial enterprises and financial bonds (including policy- bank bonds) only). ![]() 334 2. Number and Distribution of Securities Branches of the Company As of the end of the Reporting Period, the number and distribution of securities branches of the Company are as follows: No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 1 Anhui Hefei Securities Branch in Xiyou Road, Hefei 1/F, Building 5, Commercial Building of Yiyuan Shijia, No. 888 Xiyou Road, Bijiashan Street, Shushan District, Hefei City, Anhui Province 230022 Hu Longqi 0551-65175008 2 Securities Branch in Chuangxin Road, Hefei 4F, Block C, Chuangxin Department, No. 2760, Chuangxin Road, High-tech District, Hefei City, Anhui Province 230088 Fan Huijuan 0551-62686969 3 Ma’anshan Securities Branch in Hudong Middle Road, Ma’anshan No. 1046, Hudong Middle Road, Huashan District, Ma’anshan City 243000 Gao Guosheng 0555-2963619 4 Chuzhou Securities Branch in Fengle Avenue, Chuzhou Nos. 1112 & 1114, Commercial Block S3, No. 1118 Fengle Avenue (Yutianxia South Garden), Chuzhou City, Anhui Province 239001 Lu Rudong 0550-3019976 5 Tongling Securities Branch in Huaihe Avenue, Tongling Shop 142, 1/F, No. 203A, 2/F, Huijin Building, Tongling Trade Building, Middle Section of Huaihe Avenue, Tongguan District, Tongling City, Anhui Province 244000 Hu Jing 0562-2801988 ![]() 335 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 6 Beijing Beijing Securities Branch in Dongsanhuan North Road, Beijing Units 101 (inside 102), 201, 1-2/F, Building 27, Dongsanhuan North Road, Chaoyang District, Beijing 100062 Tang Shengrui 010-59725337 7 Securities Branch in Suzhou Street, Beijing Rooms 901, 902, 903, 911, 912, 9/F, Weiya Building, No. 29 Suzhou Street, Haidian District, Beijing 100080 Feng Chao 010-62523799 8 Securities Branch in International Finance and Economy Center, Xisanhuan, Beijing 103, 1/F and 403, 404, 405, 4/F, No. 87 Xisanhuan North Road, Haidian District, Beijing 100048 Liu Zhifeng 010-68733735 9 Securities Branch in Yonghe Temple, Beijing Room 501, 5/F, Block F, Room 116, 1/F, & Room 216, 2/F, Block D, No. 28 Andingmen East Street, Dongcheng District, Beijing 100007 Zhao Youqiang 010-84273989 10 Securities Branch in Yuetan South Street, Beijing 3/F Wanfeng Yihe Business Club, No. 12A Yuetan South Street, Xicheng District, Beijing 100045 Zhang Zhiqun 010-68058688 11 Securities Branch in Xueyuan South Road, Beijing Room 107, 1/F, Room 309, 3/F, No. 62 Xueyuan South Road, Haidian District, Beijing 100081 Li Minghuan 010-82263313 12 Securities Branch in Tianchen East Road, Beijing No. D1003, 10/F (inside 101), 1/F, Building 1, No. 1 Yard, Tianchen East Road, Chaoyang District, Beijing 100081 Chen Haojun 18936880087 13 Securities Branch in Jianguo Road, Beijing Unit 02, inside 501, 5/F, No. 77, Jianguo Road, Chaoyang District, Beijing 100081 Zhao Zhe 010-65055695 14 Inner Mongolia Baotou Securities Branch in Huanghe Street, Baotou No. 87, Huanghe Street, Xitu Hightech Zone, Baotou City, Inner Mongolia Autonomous Region 014040 Cao Mingdong 0472-4136027 15 Securities Branch in Gangtie Street, Baotou 2/F, No. 15 Gangtie Street, Qingshan District, Baotou City, Inner Mongolia Autonomous Region 014010 Ma Xiaoju 0472-6867886 16 Hohhot Securities Branch in Xinhua East Street, Hohhot No. 1, 1-2/F, Orient Restaurant, West Area of Tuanjie Community, Xinhua East Street, Yingxin Road, Xincheng District, Hohhot City, Inner Mongolia Autonomous Region 010010 Shi Saihua 0471-3251992 ![]() 336 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 17 Hebei Shijiazhuang Securities Branch in Ziqiang Road, Shijiazhuang Unit 0-103A, Commercial Podium of Office Building (1/F), Zhongjiao Fortune Center T1/T2, No. 118 Ziqiang Road, Qiaoxi District, Shijiazhuang City, Hebei Province 050051 Han Jiancai 0311-66788203 18 Fujian Fuzhou Securities Branch in North Wuyi Road, Fuzhou 19/F, Block 3, Zhengxiang Center, No. 153 North Wuyi Road, Shuibu Street, Gulou District, Fuzhou City 350009 Peng Fei 0591-88035766 19 Quanzhou Securities Branch in Jinhuai Street, Quanzhou Units 705-707, Building 1, Zhongjun Square, No. 16 Jinhuai Street, Fengze District, Quanzhou, Fujian Province 362000 Jiang Yongjun 0595-22187188 20 Xiamen Securities Branch in Xiahe Road, Xiamen Rooms 201 & 202, Unit One, Block B, Haiyi Building, No. 668 Xiahe Road, Siming District, Xiamen City 361004 Lv Yuexiang 0592-2997398 21 Zhangzhou Securities Branch in Shuixian Avenue, Zhangzhou Room 101, Room 403, Room 404, Building B, No. 88 Shuixian Street, Longwen District, Zhangzhou City, Fujian Province 363000 Liu Huafeng 0596-2900350 ![]() 337 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 22 Guangdong Foshan Securities Branch in Denghu East Road, Foshan Units 1203-1206, 12/F, Huaya Financial Center, No. 8 Denghu East Road, Guicheng Street, Nanhai District, Foshan City (subject to domicile declaration) 528200 Yang Siyu 0757-29808978 23 Guangzhou Securities Branch in Zhujiang West Avenue, Guangzhou 17/F (self-edited rooms 05, 06 and 07), No. 15 Zhujiang West Avenue, Tianhe District, Guangzhou City 510000 Wu Shiyan 020-37279969 24 Securities Branch in Pazhou Avenue, Guangzhou Rooms 2304, 2305, 2306 and 2307, No. 109 Pazhou Avenue, Haizhu District, Guangzhou City 510440 Zhu Daoming 020-39213388 25 Securities Branch in Middle Guangzhou Avenue, Guangzhou Rooms 3205 and 3206, No. 307 Middle Guangzhou Avenue, Yuexiu District, Guangzhou City 510220 Shi Hongyang 020-37634314 26 Securities Branch in Haizhu Plaza, Guangzhou 04, 05, 06, 25/F, No. 13 Qiaoguang West Road, Yuexiu District, Guangzhou City 510060 Liu Li 020-83846159 27 Securities Branch in Xingmin Road, Guangzhou Rooms 906-911, No. 222- 3, Xingmin Road, Tianhe District, Guangzhou 510620 Lin Hao 020-89286707 28 Securities Branch in Tianhecheng, Guangzhou Units 03-1, 05, 06 and 07, 36/F, Yuehai Tianhecheng Building (namely, Tianhecheng East Tower), No. 208 Tianhe Road, Tianhe District, Guangzhou City 510620 Tang Jia 020-22031389 29 Securities Branch in Yuncheng East Road, Guangzhou Units 201, 202, 203, 204, 205, No. 561 Yuncheng East Road, Baiyun District, Guangzhou City 510420 Luo Fanglin 020-86273767 ![]() 338 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 30 Dongguan Securities Branch in Dongguan International Trade Center Room 3303, Building 2, International Trade Center, No. 1 Hongfu East Road, Dongcheng Street, Dongguan City, Guangdong Province 523000 Wang Lijun 0769-22827993 31 Zhongshan Securities Branch in Zhongshan Fifth Road, Zhongshan No. 2 of Unit 01, 1/F, Block 3, Zima Benteng Square, No. 2 Zhongshan Fifth Road, Eastern District, Zhongshan City 528403 Liao Xiwu 0760-89823338 32 Shantou Securities Branch in Changping Road, Shantou Rooms 103 and 202, North Tower, China Resources Building, No. 95 Changping Road, Longhu District, Shantou City, Guangdong Province 515041 Chen Yu 0754-89898179 33 Shenzhen Securities Branch in Qianhai, Shenzhen Rooms 101, 102, 201, 202, 301 and 402, Building B7, Qianhai Shenzhen-Hong Kong Fund Town, No. 128 Guiwan Fifth Road, Nanshan Sub-district, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen City 518031 Cheng Tao 0755-25889919 34 Securities Branch in Caitian Road, Shenzhen 1/F & 2/F, Block 3, Fuyuan Building, No. 2014-9 Caitian Road, Futian District, Shenzhen City 518026 Ma Jianmin 0755-82993655 35 Securities Branch in China Resources Building, Keyuan South Road, Shenzhen Rooms L1805 & L1806, China Resources Building, No. 2666 Keyuan South Road, Haizhu Community, Yuehai Sub- district, Nanshan District, Shenzhen 518059 Li Xiaoshan 0755-86270363 36 Securities Branch in Longgang Avenue, Shenzhen 101S & 102S, Block 2, Vanke Times Square, Shangjing Community, Longcheng Subdistrict, Longgang District, Shenzhen City (at the junction of Longgang Avenue and Longcheng Avenue) 518172 Ye Qing 0755-85205902 37 Securities Branch in Baidu International Building, Keyuan Road, Shenzhen 33/F, East Tower, Baidu International Building, Xuefu Road East, Yuehai Street, Nanshan District, Shenzhen City 518040 Gao Jian 0755-82531008 ![]() 339 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 38 Securities Branch in Shennan Avenue, Shenzhen Room 2501A, Block B, Phase I Donghai International Center, No. 7888 Shennan Road, Donghai Community, Xiangmihu Street, Futian District, Shenzhen City 518040 Cao Mengming 0755-82719339 39 Securities Branch in China Resources Land Building, Shennan Avenue, Shenzhen Rooms 2904, 2905 and 2906, Block D, China Resources Land Building, No. 19 Kefa Road, Dachong Community, Yuehai Sub-district, Nanshan District, Shenzhen 518057 Song Tao 0755-25870808 40 Securities Branch in Hongli Road, Shenzhen BC, 9/F, Block A, CIS Commercial Center, No. 1061 Xiangmei Road, Xiangmihu Street, Futian District, Shenzhen City 518000 Gu Guoxu 0755-82027636 41 Securities Branch in Fund Building, Shennan Avenue, Shenzhen 8B, Fund Building, No. 5999 Yitian Road, Lianhua Street, Futian District, Shenzhen City 518053 Xiao Kang 0755-23819115 42 Securities Branch in Rongchao Business Center, Yitian Road, Shenzhen Rooms 2201-2212 & 2501- 2512, Building A, Rongchao Business Center, No. 6003 Yitian Road, Fuxin Community, Lianhua Street, Futian District, Shenzhen City 518026 Wu Sheng 0755-83767506 43 Securities Branch in Yitian Road, Shenzhen Flats 02, 03, 04, 17/F, China Travel Service HK Building, No. 4011 Shennan Avenue, Futian District, Shenzhen City 518048 Shen Jiayan 0755-82766159 44 Securities Branch in Ping An Finance Center, Shenzhen Units 04 and 05, 70/F, Ping An Finance Center, No. 5033 Yitian Road, Fu’an Community, Futian Street, Futian District, Shenzhen City 518041 Wang Shaolian 0755-36996090 45 Securities Branch in Zhongxin Road, Houhai, Shenzhen Units 1203, 1205 and 1206, Xizhilang Building, No. 3033 Zhongxin Road, Weilan Coast Community, Yuehai Street, Nanshan District, Shenzhen 518048 Chen Shun 0755-27247971 ![]() 340 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 46 Guangxi Nanning Securities Branch in Minzu Avenue, Nanning Rooms 702-704, 7/F, South Office Building, Nanning China Resources Center, No. 136-5, Minzu Avenue, Qingxiu District, Nanning 530029 Lin Lianbin 0771-5570215 47 Wuzhou Securities Branch in Xidi 3rd Road, Wuzhou Business office No. 3-2 and business apartment Nos. 2801- 2809, 1/F, No. 19 Xidi 3rd Road, Wuzhou City 543002 Qin Shumin 0774-3862288 48 Hainan Haikou Securities Branch in Guoxing Road, Haikou Room 3807, 38/F, New Hainan Building, No. 5 Guoxing Road, Meilan District, Haikou City, Hainan Province 570102 He Ruijin 0898-66202789 49 Sanya Securities Branch in Yingbin Road, Sanya Unit 1201, Yangguang Financial Square, No. 360-1 Yingbin Road, Jiyang District, Sanya City, Hainan Province 572021 Zhao Yang 0898-88211669 50 Shanxi Taiyuan Securities Branch in Changzhi Road, Taiyuan Room 301, 3/F, Block C, Juxin International, No. 331 Changzhi Road, Xuefu Industrial Park, Shanxi Transformation Comprehensive Reform Demonstration Zone 030001 Wang Guoqi 0351-7775553 51 Henan Zhengzhou Securities Branch in Jingsan Road, Zhengzhou Guanghui Building, No. 15, Jingsan Road, Jinshui District, Zhengzhou City 450003 Yu Dong 0371-65585009 52 Securities Branch in Nongye Road, Zhengzhou No. 101, Floors 1-2, Building 1, No. 16, East Nongye Road, Jinshui District, Zhengzhou City 450000 Zhou Rui 0371-60958371 53 Securities Branch in Ruyi West Road, Zhengzhou Nos.107 & 305, Kailin Building, No. 99 Ruyi West Road, Zhengzhou District (Zhengdong), Henan Pilot Free Trade Zone 450008 Xia Mengfei 0371-58670567 ![]() 341 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 54 Heilongjiang Harbin Securities Branch in West 16th Street, Harbin No. 15, West 16th Street, Daoli District, Harbin City, Heilongjiang Province 150010 Li Yan 0451-51531355 55 Securities Branch in Xuanhua Street, Harbin Floors 1-2, Block B, Aocheng International, No. 239, Xuanhua Street, Nangang District, Harbin City 150001 Wang Qishen 0451-51998768 56 Mudanjiang Securities Branch in Xiyitiao Road, Mudanjiang No. 236, Xiyitiao Road, Xi’an District, Mudanjiang City, Heilongjiang Province 157001 Ma Xiuhui 0453-8111898 57 Suihua Securities Branch in Zhengyang Street, Zhaodong, Suihua Zhengyang South 10th Street, No. 3, Zhaodong, Suihua City, Heilongjiang Province (Office of ICBC Zhaodong Branch on the 2/F) 151100 Sun Peng 0455-8182228 58 Daqing Securities Branch in Xinchao Street, Daqing Commercial Service Building S10, Xinchao Jiayuan Community Phase I, Ranghulu District, Daqing City, Heilongjiang Province 163400 Zheng Ye 0459-8971477 59 Jilin Changchun Securities Branch in Minkang Road, Changchun No. 855, Minkang Road, Nanguan District, Changchun City 130041 Zhen Maofei 0431-81910599 60 Securities Branch in Ziyou Avenue, Changchun No. 1000, Ziyou Avenue, Chaoyang District, Changchun City 130021 Guo Jiayin 0431-81919187 61 Jilin Securities Branch in Jiefang East Road, Jilin City Branch No. 7, Dongchang Complex Building 2, No. 62 Jiefang East Road, Changyi District, Jilin City, Jilin Province 132001 Zhou Laiying 0432-65128799 ![]() 342 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 62 Hubei Xiaogan Securities Branch in Zijin Road, Anlu No. 1, Zijin Road, Anlu City, Hubei Province 432600 Zou Yizhao 0712-5231718 63 Securities Branch in Xiyue Avenue, Dawu Xiyue Avenue, Dawu County, Hubei Province 432800 Chen Junhong 0712-7226466 64 Securities Branch in Xiannv Avenue, Hanchuan No. 215, Xiannv Avenue, Hanchuan City, Hubei Province 431600 Si Guoyao 0712-8296358 65 Securities Branch in Changzheng Road, Xiaogan No. 29, Changzheng Road, Xiaogan City, Hubei Province 432000 Zhang Hongkai 0712-2326827 66 Securities Branch in West Main Street, Yingcheng Shop 20, Gucheng Xindu, Gucheng Avenue, Chengzhong Street, Yingcheng City, Xiaogan City, Hubei Province 432400 Zhang Xingxin 0712-3226017 67 Securities Branch in Chaoyang Road, Yunmeng No. 1, Chaoyang Road, Yunmeng County, Hubei Province 432500 Long Nina 0712-4338338 68 Enshi Securities Branch in Jingui Avenue, Enshi No. 15, Jingui Avenue, Enshi City, Hubei Province 445000 Feng Bo 0718-8237528 69 Securities Branch in Yezhou Avenue, Jianshi No. 109, Yezhou Avenue, Yezhou Town, Jianshi County 445300 Chen Yan 0718-3230098 70 Securities Branch in Chutian Road, Badong No. 5 Chutian Road, Badong County, Enshi Tujia and Miao Autonomous Prefecture, Hubei Province 444300 Zhang Zhenqian 0718-8239026 71 Securities Branch in Fengxiang Avenue, Laifeng No. 87, Fengxiang Avenue, Laifeng County 445700 Zhou Bingjie 0718-6288118 72 Securities Branch in Nanbin Avenue, Lichuan Rooms 106 and 107, Block 8, Nanbin Garden, No. 66 Nanbin Avenue, Group 1, Wangjiawan Village, Dongcheng Subdistrict Office, Lichuan City 445400 Qin Xiqiong 0718-7283339 73 Jingzhou Securities Branch in Middle Jiangjin Road, Jingzhou No. 14, Floor 1-2, Building 2, Xiangxie Lidu, Middle Jiangjin Road, Shashi District, Jingzhou City 434000 Zhou Wenting 0716-8249551 74 Securities Branch in Bijiashan Road, Shishou No. 88, Bijiashan Road, Xiulin Agency, Shishou City 434400 Pan Jianping 0716-7298253 ![]() 343 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 75 Shiyan Securities Branch in Chaoyang Middle Road, Shiyan No. 29, Chaoyang Middle Road, Maojian District, Shiyan City 442000 Wang Lin 0719-8688188 76 Wuhan Securities Branch in Minzu Avenue, Wuhan No. 1 Minzu Avenue, Hongshan District, Wuhan City 430074 Xu Hui 027-87575660 77 Securities Branch in Jianghan Road, Wuhan R1, 1/F and R1-R3, 2/F, Shipping International Plaza, No. 250 Jianghan Road, Jiang’an District, Wuhan City 430032 Li Pan 027-83632286 78 Securities Branch in Youyi Avenue, Wuhan Rooms 03 and 04, 1/F, Unit 3, Building 1, Vanke Jinyu Huafu, No. 29 Fangji Road, Yangyuan Street, Wuchang District, Wuhan City 430080 Wang Kai 027-86880966 79 Securities Branch in Gaoxin Avenue, Wuhan A103-A111, 1/F and A205-A208, 2/F, Tower A, Huigu Building, No. 768 Gaoxin Avenue, Donghu New Technology Development Zone, Wuhan City 430060 Zhang Suicui 027-88133377 80 Securities Branch in Zhongbei Road, Wuhan Nos. 02, 03, 05, 10, 37/ F (42/F of elevator), Block T1, and Part Shop No. 7, 1/F, Block T3, Phase II of Changchenghui, No. 9 Zhongbei Road, Wuchang District, Wuhan City, Hubei Province 430070 Liu Hongyan 027-87816068 81 Securities Branch in Xinhua Road, Wuhan No. 314, Xinhua Road, Jianghan District, Wuhan City 430015 Zhang Feng 027-85558889 82 Xiangyang Securities Branch in Hanjiang North Road, Xiangyang Block 1, Wall Street, No. 115 Hanjiang North Road, Fancheng District, Xiangyang City, Hubei Province 441000 Li Qiaoni 0710-3278298 83 Huanggang Securities Branch in Dongmen Road, Huanggang Shops 101 & 102, 1/F and No. 201, 2/F, Building 8, No. 91- 36 Dongmen Road, Huangzhou District, Huanggang City, Hubei Province 438000 Ning Yi 0713-8613915 84 Securities Branch in Minzhu Road, Wuxue Shops 101-104 and 201-203, Building 3, Guoding Mansion, No. 138-17 Minzhu Road, Wuxue City, Hubei Province 435400 Xu Jian 0713-6758589 85 Securities Branch in Ronghui Road, Macheng No. 33, Ronghui Road, Macheng City, Hubei Province 438300 Zou Rui 0713-2772385 ![]() 344 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 86 Yichang Securities Branch in Zilong Road, Dangyang No. 59, Zilong Road, Dangyang City, Hubei Province 444100 Wang Zhenpeng 0717-3252238 87 Securities Branch in Xiling First Road, Yichang No. 10, Xiling First Road, Yichang City 443000 You Jianghua 0717-6229898 88 Securities Branch in Changjiang Avenue, Yidu No. 167, Changjiang Avenue, Lucheng, Yidu City 443300 Hu Dewen 0717-4836899 89 Securities Branch in Park Road, Zhijiang Junction of Tuanjie Road and Park Road, Majiadian, Zhijiang City 443200 Yang Run 0718-4200539 90 Hunan Changsha Securities Branch in Furong Middle Road, Changsha Units 30028-30032, Fuxing Commercial Plaza, No. 303, Section 1, Furong Middle Road, Kaifu District, Changsha City, Hunan Province 410007 Zhan Xiaoqiang 0731-85561098 91 Yueyang Securities Branch in Tianyue Avenue, Pingjiang, Yueyang Beside to the Local Tax Bureau, Tianyue Avenue, Pingjiang County, Yueyang City 414500 Chen Muyuan 0730-6297006 92 Securities Branch in Yueyang Avenue, Yueyang Rooms 1818, 1819, 1820, Building 4, Wanxiang Ruicheng, No. 219 Yueyang Avenue West, Yueyanglou District, Yueyang City 414000 Tang Jingyu 0730-8240599 93 Jiangxi Nanchang Securities Branch in Yanjiang North Avenue, Nanchang 2# Hotel of Peace International Hotel, Rooms 107, 803 and 804 of Office Building, No. 69, Yanjiang North Road, Donghu District, Nanchang City, Jiangxi Province 330006 Wu Di 0791-86270340 94 Securities Branch in Fenghe Middle Avenue, Nanchang North side of Room 104 and Room 204, No. 2 Office and Commerce Building, Xinghehui Business Center, No. 1333 Fenghe Middle Avenue, Honggutan New District, Nanchang City, Jiangxi Province 330100 Han Tao 0791-83751699 95 Ganzhou Securities Branch in M&A Fund Park, Ganzhou Shops 1-1, 1-10, 2-1 and 2-10, Building 1, Yangming International Center, Zhangjiang New Zone, Zhanggong District, Ganzhou City, Jiangxi Province 341000 Liu Jingwei 0797-5886858 96 Jiangsu Changzhou Securities Branch in Dongheng Street, Changzhou No. 2, Dongheng Street, Changzhou City 213003 Zou Wenjuan 0519-81000818 ![]() 345 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 97 Securities Branch in Heping North Road, Changzhou No. 9, Heping North Road 213000 Jing Wei 0519-85522173 98 Securities Branch in Taihu East Road, Changzhou Nos. 1-10, 11, 12, 26, 27 and 28, Fuchen Park, Taihu East Road, Xinbei District, Changzhou City 213000 Yan Yao 0519-86921660 99 Securities Branch in Huayuan Street, Changzhou A-101 and 201, No. 137 Huayuan Street, Wujin District, Changzhou City, Jiangsu Province 213159 Yang Lu 0519-86600788 100 Securities Branch in Nanhuan First Road, Jintan Nos. 109, 110, 111 and 112, Building 1, Binhe Xingcheng, Jintan District, Changzhou City 213200 Yao Haitang 0519-82696969 101 Securities Branch in South Street, Liyang No. 91, South Street, Liyang City 213300 Lin Weinian 0519-85809762 102 Huaian Securities Branch in East Huahai Road, Huaian Shops 1004-1006, and Rooms 801-814, Building 1, Huifeng Central Plaza, Huaian City 223301 Hu Xi 0517-83907888 103 Securities Branch in Fuyu Road, Huaian Room 101, Block 1, No. 3 Fuyu Road, Economic and Technological Development Zone, Huaian City 223300 Yu Le 0517-84908988 104 Securities Branch in Hongri Avenue, Lianshui, Huaian Rooms 103 and 104, Building Z02, Xin Lian Yi Pin, Zhong Lian One City, Lianshui County, Huaian 223400 Kang Le 0517-82660908 105 Securities Branch in Xiangyu Avenue, Huai’an District, Huaian No. 1007 Xiangyu Avenue, Huaian District, Huaian City 223200 Li Naigen 0517-85198077 106 Securities Branch in Huaihe East Road, Xuyi, Huaian No. 45, Huaihe East Road, Xucheng Town, Xuyi County, Huaian City, Jiangsu Province 211700 Wang Xinyan 0517-88215061 ![]() 346 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 107 Nanjing Securities Branch in Zhenzhu North Road, Lishui No. 218-13, Zhenzhu North Road, Economic Development Zone, Lishui District, Nanjing City, Jiangsu Province 211200 Wu Chunpeng 025-56235323 108 Securities Branch in Qingliangmen Street, Nanjing Room 1901, No. 39 Qingliangmen, Gulou District, Nanjing City 210036 Zhang Haiqiao 025-86586116 109 Securities Branch in Changjiang Road, Nanjing 1/F & 2/F, No. 99 Changjiang Road, Nanjing City 210005 Xing Qin 025-84798478 110 Securities Branch in Baota Road, Gaochun, Nanjing No. 188-6, Baota Road, Chunxi Town, Gaochun District, Nanjing City, Jiangsu Province 211300 Jiang Lai 025-56816719 111 Securities Branch in Wenlan Road, Nanjing No. 6, Wenlan Road, Xianlin University Town, Qixia District, Nanjing 210024 Li Boyang 025-58010075 112 Securities Branch in Lushan Road, Nanjing No. 168, Lushan Road, Jianye District, Nanjing City 210029 Yao Yuechuan 025-83539779 113 Securities Branch in Minzhi Road, Nanjing 12/F, Block N, Nanjing Zendai Hima Centre, No. 2 Minzhi Road, Yuhuatai District, Nanjing 210002 Li Guoping 025-86895618 114 Securities Branch in Tianyuan East Road, Jiangning, Nanjing Rooms 801-805, Building 8, Fortune Plaza II, No. 228 Tianyuan East Road, Chunhua Street, Jiangning, Nanjing City 211100 Hou Jiarui 025-83389130 115 Securities Branch in Daguang Road, Nanjing Room 202A, Guanghua Building, No. 39 Daguang Road, Qinhuai District, Nanjing City 210016 Li Ying 025-84636866 116 Securities Branch in Xiongzhou West Road, Liuhe, Nanjing 9/F, Building 1, No. 12 Xiongzhou West Road, Xiongzhou Street, Liuhe District, Nanjing City 211500 Xie Xiangshun 025-57115051 117 Securities Branch in Ningshuang Road, Nanjing 12/F, Building A, Yunmi City, No. 19 Ningshuang Road, Yuhuatai District, Nanjing City, Jiangsu Province 210007 Xu Minfeng 025-84480958 ![]() 347 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 118 The Second Securities Branch in Zhongshan East Road, Nanjing Room 801, Panda Building, No. 301 Zhongshan East Road, Xuanwu District, Nanjing City 210008 Jiang Xianming 025-84701234 119 Securities Branch in Zhimaying, Nanjing No. 26, Zhimaying, Nanjing City 210004 Wang Huan 025-52210618 120 Securities Branch in Zhonghua Road, Nanjing No. 255, Zhonghua Road, Nanjing City, Jiangsu Province 210001 Yang Haikun 025-52238618 121 Securities Branch in Huatai Securities Building, East Zhongshan Road, Nanjing 25/F, No. 90 East Zhongshan Road, Qinhuai District, Nanjing 210009 Xu Yiping 025-84718112 122 Securities Branch in Zhenghe Middle Road, Nanjing Room 902, 9/F, Building D, Nanjing Yangtze River International Shipping Center, No. 118, Zhenghe Middle Road; No. 3-15-2, Yongning Street, Gulou District, Nanjing 210003 Chu Dongbing 025-83539292 123 Securities Branch in Suyuan Avenue, Jiangning District, Nanjing South Side of 1/F, Block A1, Jiangning Jiulonghu International Corporate Headquarters Park, No. 19 Suyuan Avenue, Jiangning Economic and Technological Development Zone, Nanjing City 210037 Tao Kan 025-83581116 124 Securities Branch in Pukou Avenue, Nanjing Room 3004, Building 1, No. 11 Pukou Avenue, Jiangpu Street, Pukou District, Nanjing 210032 Ma Qiaoping 025-83176012 125 Nan Tong Securities Branch in Changjiang Road, Haimen No. 231, Changjiang Road, Haimen Town, Haimen City, Jiangsu Province 226100 Xu Ke 0513-82227766 126 Securities Branch in Middle Changjiang Road, Hai’an, Nantong No. 93, Middle Changjiang Road, Hai’an Town, Hai’an County, Nantong City, Jiangsu Province 226600 Zhai Jiping 0513-88856678 127 Securities Branch in Gongnong Road, Nantong Rooms 2404-2405, South Building, Harmony City, No. 57 Gongnong Road, Nantong City 226000 Gu Zhun 0513-85126758 128 Securities Branch in Middle Renmin Road, Nantong East half of the 2/F, Jinxin Building, No. 79, Middle Renmin Road, Chongchuan District, Nantong City 226001 Wang Yongsheng 0513-85123188 129 Securities Branch in Jianghai Road, Rudong, Nantong Southern section of the 4/F, Room 101, Zhongyang Plaza, No. 2 East Jianghai Road, Chengzhong Street, Rudong County 226400 Shi Shushu 0513-84883333 ![]() 348 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 130 Securities Branch in Shanghai East Road, Nantong Room 101, Block 2, Jinhaiyuan, Development Zone, Nantong City 226009 Zhu Bing 0513-85895597 131 Securities Branch in New Century Avenue, Tongzhou, Nantong Office 01B-2, No. 170, New Century Avenue, High-tech Zone, Nantong 226300 Ji Xi 0513-81692959 132 Securities Branch in Yaogang Road, Nantong No. 6, Yaogang Road, Nantong City, Jiangsu Province 226006 Sha Fei 0513-85580999 133 Securities Branch in Middle Renmin Road, Qidong No. 505, Middle Renmin Road, Huilong Town, Qidong City, Jiangsu Province 226200 Yao Liang 0513-83652208 134 Securities Branch in Fushou Road, Rugao Rooms 2-1 & 2-2, Complex Building, Chengjian Jiayuan Phase III, Rucheng Town, Rugao City, Jiangsu Province 226500 Jiang Nan 0513-87335888 135 Suzhou Securities Branch in Jinshajiang Road, Changshu No. 18, Jinshajiang Road, Changshu City, Jiangsu Province 215500 Zhang Zhen 0512-67579766 136 Securities Branch in Heilongjiang North Road, Kunshan Room 3-1, 1/F and Room 20, 3/F, Building 3, Yujing Mansion, No. 8 Heilongjiang North Road, Kunshan Development Zone 215300 Liu Xinglin 0512-55219166 137 Securities Branch in Ganjiang West Road, Suzhou No. 1359, Ganjiang West Road, Suzhou City, Jiangsu Province 215004 Lu Renyan 0512-68270515 138 Securities Branch in Heshan Road, Suzhou 2/F, Building 2, Jinri Jiayuan (No. 56, Heshan Road), Hightech Zone, Suzhou City 215000 Zhang Lin 0512-68785488 139 Securities Branch in Renmin Road, Suzhou No. 1925, Renmin Road, Suzhou City, Jiangsu Province 215001 Pan Yi 0512-52895998 140 Securities Branch in East Suzhou Avenue, Suzhou 29A, Modern Media Plaza, No. 265 East Suzhou Avenue, Suzhou Industrial Park 215028 Li Xinran 0512-67248873 141 Securities Branch in Xinshi Road, Suzhou No. 102, Xinshi Road, Canglang District, Suzhou City, Jiangsu Province 215007 Guo Hengxi 0512-65187816 142 Securities Branch in Taiping South Road, Taicang 1-2/F, Building 1, No. 36, Taiping South Road, Chengxiang Town, Taicang City 215400 Liu Lihong 0512-53589559 ![]() 349 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 143 Securities Branch in Guangzhou Road, Shengze Town, Wujiang Room 107, Huiying Mansion, Financial Business Center, North Side of Chenjiaqiao Village Road, Xincheng District, Shengze Town, Wujiang District, Suzhou City 215228 Fan Xiaofeng 0512-63910061 144 Securities Branch in Middle Changjiang Road, Jingang Town, Zhangjiagang No. 251, Middle Changjiang Road, Jingang Town, Zhangjiagang City, Jiangsu Province 215633 Wang Guohua 0512-56767800 145 Securities Branch in Yangshe East Road, Zhangjiagang No. 2, Yangshe Road East 215600 Lu Rong 0512-58127000 146 Securities Branch in Wuzhong Avenue, Suzhou Rooms 106, 111,112 on 1/F and Rooms 202 & 203 on 2/F, Wuzhong Commercial Center, Building 1, No. 198 Su Street, Yuexi Sub-district, Wuzhong Economic Development Zone, Suzhou 215104 Sun Qiang 0512-66021886 147 Securities Branch in Gaoxin Road, Wujiang District, Suzhou Nos. 946 and 948, Gaoxin Road, Songling Town, Wujiang District, Suzhou City 215200 Zhao Yang 0512-63956208 148 Taizhou Securities Branch in East Street, Jiangyan No. 23, East Avenue, Luotang Street, Jiangyan District, Taizhou City, Jiangsu Province 225500 Miao Genping 0523-88209518 149 Securities Branch in Fuyang Road, Jingjiang 101, Block A3, Financial Business District, No. 2 Fuyang Road, Jingjiang City 214500 Wu Haojun 0523-89101088 150 Securities Branch in Guoqing West Road, Taixing D106 & D206, Hotel Building 4, Qingyun Garden, Taixing City, Jiangsu Province 225400 Tao Jin 0523-87095597 151 Securities Branch in Yongding East Road, Gaogang, Taizhou 2/F, Building 3, No. 288 Yongding East Road, Taizhou City 225300 Ji Tao 0523-86985597 152 Securities Branch in Middle Yingwu Road, Xinghua, Taizhou No. 198, Middle Yingwu Road, Xinghua City, Jiangsu province 225700 Cai Li’ang 0523-83256333 ![]() 350 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 153 Wuxi Securities Branch in Futai Road, Jiangyin 5/F, New Baiye Square, No. 8 Futai Road, Jiangyin City 214421 Zhang Ye 0510-86837528 154 Securities Branch in Huandong Road, Huashi Town, Jiangyin No. 680, Huandong Road, Huashi Town, Jiangyin City 214421 Chen Dongdong 0510-81662778 155 Securities Branch in West Avenue, Zhouzhuang Town, Jiangyin No. 628 Zhouzhuang West Avenue, Zhouzhuang Town, Jiangyin City 214423 Yan Ming 0510-81660113 156 Securities Branch in Hongqiao North Road, Changjing Town, Jiangyin No. 10, Hongqiao North Road, Changjing Town, Jiangyin City 214411 Zhou Junning 0510-81662758 157 Securities Branch in Yingxiu Road, Qingyang Town, Jiangyin No. 111, Yingxiu Road, Qingyang Town, Jiangyin City 214401 Liu Chaohui 0510-86817241 158 Securities Branch in Shenpu Road, Lingang, Jiangyin No. 108, Shenpu Road, Lingang Sub-district, Jiangyin City 214443 Huang Yaqiu 0510-81666278 159 Securities Branch in Liangqing Road, Wuxi 1/F, Jiangong Building, No. 56 Liangqing Road, Wuxi City 214000 Lu Yunjie 0510-82768155 160 Securities Branch in Jiefang West Road, Wuxi No. 327, Jiefang West Road, Wuxi City 214000 Tang Kai 0510-82722975 161 Securities Branch in Financial First Street, Wuxi 101B, No. 15 Financial First Street, Taihu Street, Binhu District, Wuxi City 214123 Yi Zilong 0510-85065672 162 Securities Branch in Hefeng Road, Wuxi 102-2, 103-2, Building 1, Huiye Business Plaza, No. 32 Hefeng Road, Xinwu District, Wuxi City 214021 Dong Jun 0510-85045101 163 Securities Branch in Jiefang East Road, Yixing No. 177, Jiefang East Road, Yicheng Sub-district, Yixing City 214299 Wan Lei 0510-80793526 164 Lianyungang Securities Branch in Tongguan South Road, Lianyungang No. 69, Tongguan South Road, Haizhou District, Lianyungang City, Jiangsu Province 222001 Wang Lei 0518-85519068 165 Suqian Securities Branch in Yongkang Road, Shuyang, Suqian Room 101-2-1, Financial and Insurance Building, South Side of Suzhou Road and West Side of Yongkang Road, Shuyang County, Suqian City 223600 Feng Lingtong 0527-87880259 166 Securities Branch in Hongze Lake Road, Suqian No. 581, Hongze Lake Road, Suqian City 223800 Zhang Yang 0527-84390068 ![]() 351 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 167 Xuzhou Securities Branch in Science Park, Xuzhou Room 103, 1/F & Rooms 306, 307 and 308, 3/F, Technology Building, Technology Avenue, Quanshan District, Xuzhou City 221006 Zhou Xuehong 0516-85850911 168 Securities Branch in Tangmu Road, Pei County, Xuzhou No. 2, Tangmu Road, Pei County, Xuzhou City, Jiangsu Province 221600 Shi Zhikun 0516-81202066 169 Securities Branch in Huaihai East Road, Xuzhou No. 165, 1F/F and Rooms 2102 – 2105, Unit A, Suning Plaza, No. 29 Huaihai East Road, Gulou District, Xuzhou City 221000 Jiao Shuai 0516-83718027 170 Securities Branch in Suihe North Road, Suining, Xuzhou Southeast Corner, 1/F, Building 2, Business Service Center, New Economic and Technology Park, No. 223 Suihe North Road, Suining County, Xuzhou City, Jiangsu Province 221200 Zhang Lei 0516-88307899 171 Securities Branch in Qinjun Road, Xuzhou 1-104, Building 6 (previously 9), Area 3, Financial Service Center, Huaihai Economic Zone, No. 1 Qinjun Road, Yunlong District, Xuzhou City 221116 Xu Xiaonan 0516-83318255 172 Securities Branch in Jianguo West Road, Xuzhou Room 109, 1/F & Room 205, 2/F, Block 1A, Fortune Plaza, No. 75 Jianguo West Road, Xuzhou City 221000 Zhang Zhengxing 0516-85803998 173 Securities Branch in Daqiao West Road, Xinyi No. 8, Daqiao West Road, Xinyi, Xuzhou City, Jiangsu Province 221400 Han Chao 0516-88989808 174 Securities Branch in Zhongyang Avenue, Feng County, Xuzhou (Shops 2-10, Mingshi Garden), No. 5101 Zhongyang Avenue, Feng County, Xuzhou City, Jiangsu Province 221700 Sun Chaoxing 0516-66650656 ![]() 352 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 175 Yancheng Securities Branch in Renmin South Road, Dafeng, Yancheng Rooms 102, 103 and 104, Building B, Yangguang Mall, Dafeng District, Yancheng 224100 Shen Zhongqin 0515-83928806 176 Securities Branch in Middle Hailing Road, Dongtai Rooms 8017 & 8018, Building 3, Shangye New Village, No. 78 Middle Hailing Road, Dongtai 224200 Xi Jing 0515-85105761 177 Securities Branch in South Hongxing Alley, Binhai, Yancheng Room 15-103 and Room 15- 104, No. 15 Commercial and Residential Building, No. 16 Commercial and Office Building, Lvdu Jiayuan, No. 29 South Hongxing Alley, Dongkan Street, Binhai County 224500 Zhou Dehong 0515-87021988 178 Yangzhou Securities Branch in Pinghuai Road, Gaoyou, Yangzhou No. 37, Pinghuai Road, Gaoyou 225600 Sheng Fuqing 0514-85089721 179 Securities Branch in Yeting East Road, Baoying, Yangzhou No. 10, Yeting East Road, Baoying County 225800 Yu Jie 0514-88259411 180 Securities Branch in South Longchuan Road, Jiangdu, Yangzhou Nos. 220, 222 and 226, Business Buildings, Longchuan Road, Zhongyuan Europe City, Xiannv Town, Jiangdu District, Yangzhou City 225200 Liu Handong 0514-86534998 181 Securities Branch in Changjian Center, Museum Road, Yangzhou 6-2001, 2002, 2019, 2020, 2021, 2022, 2023, 2024, 20/ F, Changjian Center, No. 364 Museum Road, Hanjiang District, Yangzhou City 225000 Qiao Qi 0514-82982003 182 Securities Branch in Wenchang Middle Road, Yangzhou No. 406, Wenchang Middle Road, Yangzhou City, Jiangsu Province 225001 Xu Xuefeng 0514-87366418 183 Securities Branch in Zhenzhou East Road, Yizheng, Yangzhou No. 101, Zhenzhou East Road, Zhenzhou Town, Yizheng City, Jiangsu Province 211400 Xu Yiming 0514-83962098 ![]() 353 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 184 Zhenjiang Securities Branch in Huangshan South Road, Zhenjiang Rooms 101, 201, 301, Block 1, Huangshan Yaju, No. 6 Huangshan South Road, Zhenjiang City, Jiangsu Province 212000 Wu Jiarong 0511-85037099 185 Securities Branch in Cuizhu South Road, Yangzhong No. 235, Cuizhu South Road, Sanmao Sub-district, Yangzhong City 212200 Yin Hang 0511-88399933 186 Securities Branch in Guyang Middle Avenue, Dantu, Zhenjiang Rooms 131-133, 236-237, 239, 241, 243, Hengyu Building, Guyang Middle Avenue, Dantu District, Zhenjiang City 212000 Xu Rui 0511-85115898 187 Securities Branch in Fenghuang Road, Danyang, Zhenjiang Nos. 16-1 to 16-3, Fenghuang Road, Development Zone, Danyang 212300 Hou Yeping 0511-86699772 188 Securities Branch in Huayang North Road, Jurong, Zhenjiang No. 1, Huayang North Road, Huayang Town, Jurong City 212400 Liu Heng 0511-85979998 189 Liaoning Dalian Securities Branch in Shengli East Road, Dalian Nos. 223 and 231, Market Street; Nos. 2-1, 2-2 and 2-3, Unit 1, No. 227 Market Street, Xigang District, Dalian City, Liaoning Province 116013 Nie Boshi 0411-82815866 190 Securities Branch in Gangxing Road, Dalian Rooms 01, 02 & 03-1, 13/ F, Exchange Square, No. 40 Gangxing Road, Zhongshan District, Dalian City, Liaoning Province 116021 Zhang Yuwei 0411-84342688 191 Panjin Securities Branch in Huibin Street, Panjin 1#1708-1715, Area E of Blue Kangqiao, South of Huibin Street and East of Xiangdao Road, Xinglongtai District, Panjin City, Liaoning Province 124010 Wang Fan 0427-3257500 192 Shenyang Securities Branch in Daxi Road, Shenyang No. 187, Daxi Road, Shenhe District, Shenyang City, Liaoning Province 110014 Wang Hui 024-31976665 193 Securities Branch in Guangrong Street, Shenyang (0300) No. 23, Guangrong Street, Heping District, Shenyang City, Liaoning Province 110003 Liu Xiaoqing 024-31883577 194 Securities Branch in Qingnian Street, Shenyang No. 318 (Gate 1) and No. 320 (Annex Building 201), Qingnian Street, Heping District, Shenyang City 110004 Zhang Sai 024-31883388 195 Yingkou Securities Branch in Bohai Street, Yingkou No. 16-A-1, Bohai Street East, Zhanqian District 115000 Tang Wei 0417-3350961 ![]() 354 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 196 Shandong Jinan Securities Branch in Jingqi Road, Jinan West Hall, 1F, Runheng Building, No. 83, Jingqi Road, Shizhong District, Jinan City 250000 Zhang Qinlei 18660186343 197 Securities Branch in Jiefang East Road, Jinan Room 203, 2/F, Podium of Shandong Port Luhai Logistics Building, No. 25-6 Jiefang East Road, Lixia District, Jinan City 250061 Ji Xiankun 0531-82318318 198 Securities Branch in Jiefang Road, Jinan 1/F, East Dongyuan Building, No. 30 Jiefang Road, Lixia District, Jinan City 250013 Li Shuai 0531-85829568 199 Yantai Securities Branch in Changshan Road, Laiyang No. 32, Changshan Road, Laiyang City, Shandong Province 265200 Zang Peng 0535-7999111 200 Securities Branch in South Street, Yantai No. 236, South Street, Zhifu District, Yantai City, Shandong Province 264000 Wang Xiaodong 0535-2150055 201 Qingdao Securities Branch in West Hong Kong Road, Qingdao No. 79, West Hong Kong Road, Shinan District, Qingdao, Shandong Province 266071 Wang Qiang 0532-83861188 202 Linyi Securities Branch in Jinqueshan Road, Linyi Room 101, Block B, Weite Tianyuan Square, Jinqueshan Road, Lanshan District, Linyi City, Shandong Province 276000 Jing Jianfei 0539-7030698 203 Shanghai Shanghai Securities Branch in Jiangning Road, Putuo District, Shanghai Room 901, No. 1158, Jiangning Road, Putuo District, Shanghai 200060 Chen Xiaoxue 021-33532200 204 Securities Branch in West Guangzhong Road, Jing’an District, Shanghai Rooms 1103 & 1105, Nos. 359 & 365, West Guangzhong Road, Jing’an District, Shanghai 200435 Bao Jianghao 021-56761987 205 Securities Branch in Feihong Road, Hongkou District, Shanghai Units 2803, 2804, 2805, 2806, Building 1, No. 118, Feihong Road, Hongkou District, Shanghai 200433 Qi Lili 021-33621855 206 Securities Branch in Longqi Road, Xuhui District, Shanghai Rooms 0101 & 0102, 1/F, and Room 0501, 5/F (actually 4/ F), Block 1, No. 158, Longqi Road, Xuhui District, Shanghai 200003 He Wei 021-63181398 207 Securities Branch in Raffles Square, Huangpu District, Shanghai Room 5003-05 (actual room numbers are 4403A, 4403B, 4404), No. 268, Central Tibet Road, Huangpu District, Shanghai 200042 Shi Cao 021-63550001 208 Securities Branch in Weihai Road, Jing’an District, Shanghai Room 1305, No. 511, Weihai Road, Jing’an District, Shanghai 200041 Xu Yixuan 021-62678287 ![]() 355 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 209 Securities Branch in Mudanjiang Road, Shanghai 5/F, No. 1508, Mudanjiang Road, Baoshan District, Shanghai 201999 Duan Baodong 021-56106616 210 Securities Branch in Wangyuan South Road, Fengxian District, Shanghai Nos. 46, 47, 48 and 49, Miaojing New Village, Fengxian District, Shanghai 201400 Yang Junjie 021-67136006 211 Securities Branch in Kaixuan Road, Changning District, Shanghai Room 1701, Building 1, Changning International Development Plaza, No. 1388 Kaixuan Road, Changning District, Shanghai 200120 Hu Shengqi 021-20773068 212 Securities Branch in Tianyaoqiao Road, Xuhui District, Shanghai Rooms 1103, 1105, 1107 and 1109, No. 329, Tianyaoqiao Road, Xuhui District, Shanghai 200030 Fu Chenjing 021-54254885 213 Securities Branch in Rushan Road, Pudong New District, Shanghai Area A of Ground Floor and Area B of Second Floor, Nos. 229, 231, Rushan Road, China (Shanghai) Pilot Free Trade Zone 200336 Wang Jie 021-52983009 214 Securities Branch in Wuding Road, Shanghai 6/F & 7/F, No. 1088, Wuding Road, Jing’an District, Shanghai 200040 Zhang Renrong 021-62566063 215 Securities Branch in South Huangpi Road, Huangpu District, Shanghai Units 01B, 02, 03, 05, 06, 3/F, Building A, Block 4, No. 1, Lane 838, South Huangpi Road, Huangpu District, Shanghai 200011 Huang Weiqing 021-63356099 216 Securities Branch in Miaojing Road, Pudong New District, Shanghai 1-3/F, No. 642, Miaojing Road, Pudong New District, Shanghai 201299 Miao Cong 021-33825017 217 Securities Branch in Century Avenue, Pudong New District, Shanghai 3/F, No. 1229 Century Avenue, China (Shanghai) Pilot Free Trade Zone 200120 Luo Fei 021-58392077 218 Securities Branch in Dongfang Road, Pudong New District, Shanghai Rooms 03 and 04, 15/F (actually Rooms 03 and 04, 12/F), No. 18 Dongfang Road, China (Shanghai) Pilot Free Trade Zone 201120 Chen Xiaoyan 021-50711727 219 Securities Branch in Binjiang Avenue, Pudong New District, Shanghai Room 101, 1/F Lobby, No. 12 Dongfang Road, China (Shanghai) Pilot Free Trade Zone 201120 Dai Xiang 021-50967056 ![]() 356 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 220 Sichuan Chengdu Securities Branch in Jinhui West 2nd Street, Chengdu Room 2103, 21/F, Unit 1, Building 10, Tianfu Xingu, No. 399, West Section, Fucheng Avenue, Hitech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone 610000 Yang Rui 028-87448096 221 Securities Branch in Tianfu Square, Chengdu Nos. 02 and 03, 21/F, Unit 1, Block 1, No. 5 Xiyu Street, Qingyang District, Chengdu City, Sichuan Province 610041 Liu Feng 028-85512252 222 Securities Branch in Renmin South Road, Chengdu Rooms 1506 and 1507, 15/F, Unit 1, Building 1, Xinxiwang Building, No. 45, Renmin Road South Section IV, Wuhou District, Chengdu City, Sichuan Province 610031 Li Huiying 028-85590880 223 Securities Branch in Shujin Road, Chengdu Rooms 1901 and 1905, Block B, Jinsha Wanrui Center, No. 1 Shujin Road, Qingyang District, Chengdu City 610091 Li Xiao 028-61505176 224 Securities Branch in Tianfu Avenue, Chengdu Nos. 1401 and 04 (self- numbered), 14/F, Block 1, No. 588 Middle Section of Tianfu Avenue, Hitech Zone, Chengdu City, China (Sichuan) Pilot Free Trade Zone 610213 Wang Hongtao 028-85640443 225 Securities Branch in Shixili, Xipu, Chengdu Annexes 13 and 14 of No. 68 Yuanlin Road, Xipu Town, Pidu District, Chengdu City 611731 Shang Guang 028-87843269 226 Deyang Securities Branch in Diamond Plaza, Changjiang West Road, Deyang A2, A3, A4, A5 and A6, 5/F, Building 1, Diamond Plaza, No. 29, Section 2, Changjiang West Road, Deyang, Sichuan Province 618100 Huang Wanqing 0838-7201167 ![]() 357 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 227 Guizhou Guiyang Securities Branch in Changling North Road, Guiyang (1509, 1510, 1511) 15/F, Unit (1)1, North Zone, Financial Business District, Zone B, Zhongtian Exhibition City, Changling North Road, Guanshanhu District, Guiyang City, Guizhou Province 550001 Shu Mengxiang 0851-86753279 228 Chongqing Chongqing Securities Branch in Jiangbeizui, Chongqing Rooms 1502 and 1503, 15/F, Unit 2, No. 9 Juxianyan Square, Jiangbei District, Chongqing 400084 Xiao Yang 023-68901837 229 Tianjin Tianjin Securities Branch in Baidi Road, Tianjin No. 240, Baidi Road, Nankai District 300192 Zhang Haiyan 022-87893469 230 Securities Branch in Erwei Road, Dongli Development Zone, Tianjin Rooms 209-211, 2/F, Caizhi Building, No. 9, Erwei Road, Dongli Development Zone, Tianjin City 300399 Liu Yongjun 022-84373801 231 Securities Branch in Qinjian Road, Tianjin Bottom Floor (Business Area), Yunhan Building, No. 185, Qinjian Road, Hongqiao District 300130 Wu Yumeng 022-26532286 232 Securities Branch in Huachang Road, Tianjin Units 07, 08, 09 and 10, 2/F, Building 1, No. 40, Huachang Road, Hedong District, Tianjin City 300151 Xu Jianguo 022-58811908 233 Gansu Lanzhou Securities Branch in Donggang West Road, Lanzhou 4/F, Changye Golden Villa, No. 621 Donggang West Road, Chengguan District, Lanzhou City, Gansu Province 730000 Fu Jie 0931-8106511 234 Shaanxi Xi’an Securities Branch in Zhuque Street, Xi’an 18/F, Xindi City, CapitaMall, No. 64 West Section of South Second Ring Road, Yanta District, Xi’an City, Shaanxi Province 710054 Gan Xinping 029-87889991 235 Securities Branch in Zhangba East Road, Xi’an 1/F, Jintai Holiday Flower City, Zhangba East Road, Yanta District, Xi’an City 710065 Chen Yuwen 029-85587020 236 Qinghai Xining Securities Branch in Xinning Road, Xining Room 59-147, 3/F, Building 5, Hexin Center, No. 23, Xinning Road, Chengxi District, Xining City, Qinghai Province 810000 Liang Xu 0971-6368338 237 Xinjiang Yining Securities Branch in Jiefang West Road, Yining City 8/F, Jinrong Building, No. 243, Jiefang West Road, Yining City 835000 Wang Hui 0999-8986569 ![]() 358 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 238 Ningxia Yinchuan Securities Branch in Yinjiaqu North Street, Yinchuan Room 101, Commercial Building No. 1, Jinhai Mingyue Garden, No. 65 Yinjiaqu North Street, Jinfeng District, Yinchuan City, Ningxia Hui Autonomous Region 750004 Liu Zhiwei 0951-6019666 239 Zhejiang Hangzhou Securities Branch in Jiefang East Road, Hangzhou Room 14102, Building 3, GTland Plaza, Shangcheng District, Hangzhou City, Zhejiang Province 310004 Wang Qianwen 0571-28002220 240 Securities Branch in Xueyuan Road, Hangzhou Units 02/03/04-1, 13/F above ground, Building 9, Huanglong International Center, No.77 Xueyuan Road, Cuiyuan Street, Xihu District, Hangzhou City, Zhejiang Province 310007 Jin Yifei 0571-87212722 241 Ningbo Securities Branch in Liuting Street, Ningbo 1-15, 3-29, 3-30, 3-31, 3-32 、 3-33, 3-34, No. 230, Liuting Street, Haishu District, Ningbo City, Zhejiang Province 315010 Ren Xin 0574-87023678 242 Securities Branch in Zhongshan East Road, Ningbo Room 1906, No. 1800 Zhongshan East Road, Shops No. 223 and No. 225 on Songxia Street, Fuming Street, Yinzhou District, Ningbo City, Zhejiang Province 315000 Li Wenhui 0574-28850168 243 Jinhua Securities Branch in Qingyun Street, Yiwu 1-2/F, Nos. 656, 658, 660, Qingyun Street, Choucheng Street, Yiwu City, Zhejiang Province 322000 Wu Hesong 0579-85519698 244 Shaoxing Securities Branch in Fushan, Shaoxing No. 213 (101 & 102), No. 215 (101 & 102) and No. 217 (233, 234 & 236-241), Huancheng West Road, Shaoxing City, Zhejiang Province 312000 Qiu Honghong 0575-85222928 245 Wenzhou Securities Branch in Yangguang Avenue, Yongjia Shops 8-13, 1/F, Yangguang Building, Xinqiao Village, Jiangbei Sub-district, Yongjia County, Zhejiang Province 325102 Zheng Keyi 0577-66992188 ![]() 359 No. Province City Name Address Zip code Person in charge of securities branches Contact number of the person in charge 246 Zhoushan Securities Branch in Tiyu Road, Zhoushan No. 353, 1/F of No. 355, 1/F of No. 357, 1/F of No. 359, Tiyu Road, Qiandao Street, Dinghai District, Zhoushan City, China (Zhejiang) Pilot Free Trade Zone 316100 Zhang Hangqing 0580-3066008 247 Taizhou Securities Branch in Zhongxin Avenue, Taizhou Room 801, Block 2, Yuanjing Center, Baiyun Street, Jiaojiang District, Taizhou City, Zhejiang Province 318000 Chen Huang 0576-89811389 248 Jiaxing Securities Branch in Fanggong Road, Jiaxing Nos. 1115 & 1119, Fanggong Road, Nanhu District, Jiaxing City, Zhejiang Province 314000 Wang Guanjie 0573-82862312 ![]() 360 III. OTHER INFORMATION (I) Accounting Firms Accounting firm engaged by the Company (domestic) Name Office address Name of the signatory accountant Deloitte Touche Tohmatsu Certified Public Accountants LLP 30/F, 222 Yan An Road East, Huangpu District, Shanghai, the PRC Hu Xiaojun, Han Jian Accounting firm engaged by the Company (Hong Kong) Name Office address Name of the signatory accountant Deloitte Touche Tohmatsu Registered PIE Auditor under the Accounting and Financial Reporting Council Ordinance 35/F, One Pacific Place, 88 Queensway, Hong Kong, the PRC Zhu Huaizhong Accounting firm engaged by the Company (United Kingdom) Name Office address Name of the signatory accountant Deloitte Touche Tohmatsu Certified Public Accountants LLP 30/F, 222 Yan An Road East, Huangpu District, Shanghai, the PRC Hu Xiaojun (II) Legal Advisors Legal advisor engaged by the Company (domestic) Name Office address King & Wood Mallesons 18/F, East Tower, World Financial Center 1 Middle East 3rd Ring Road, Chaoyang District, Beijing, the PRC Legal advisor engaged by the Company (overseas) Name Office address Clifford Chance 27/F, Jardine House, 1 Connaught Place, Central, Hong Kong, the PRC (III) Share Registrars Share registrar for A Share Name Office address China Securities Depository and Clearing Corporation Limited, Shanghai Branch No. 188 South Yanggao Road, Pudong New Area, Shanghai, the PRC Share registrar for H Share Name Office address Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17/F, Hopewell Center, 183 Queen’s Road East, Wanchai, Hong Kong, the PRC ![]() 361 IV. INFORMATION DISCLOSURES INDEX 1. During the Reporting Period, the Company disclosed the following matters on China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily and on the website of the Shanghai Stock Exchange (www.sse.com.cn): No. Date Announcement 1 2024-01-05 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended December 31, 2023 2 2024-01-10 Announcement by Huatai Securities Co., Ltd. in relation to Implementation of the Cancellation of the Repurchased A Shares 3 2024-01-11 H Share Announcement of HTSC (Next Day Disclosure Return) 4 2024-01-23 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 5 2024-01-26 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 6 2024-01-27 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 7 2024-01-30 Announcement by Huatai Securities Co., Ltd. on Change of General Manager of Huatai Securities (Shanghai) Asset Management Co., Ltd. 8 2024-02-02 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 9 2024-02-03 Announcement by Huatai Securities Co., Ltd. on Completion of the Change in Industrial and Commercial Registration of Registered Capital and the Amendments to the Articles of Association, Articles of Association of Huatai Securities Co., Ltd. (Revised in 2024), Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 10 2024-02-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended January 31, 2024 11 2024-02-07 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 12 2024-02-08 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 13 2024-02-09 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee ![]() 362 No. Date Announcement 14 2024-02-19 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 15 2024-02-29 Announcement by Huatai Securities Co., Ltd. on Appointment of General Manager of Huatai Securities (Shanghai) Asset Management Co., Ltd. 16 2024-03-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended February 29, 2024 17 2024-03-16 Announcement by Huatai Securities Co., Ltd. on Change of Chairman of Jiangsu Equity Exchange Co., Ltd. 18 2024-03-19 H Share Announcement of HTSC (Date of Board Meeting) 19 2024-03-20 Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for the Registration of Public Issuance of Corporate Bonds to Professional Investors 20 2024-03-21 Announcement by Huatai Securities Co., Ltd. on the Briefing on the Annual Results of 2023 21 2024-03-29 2023 Annual Report of Huatai Securities Co., Ltd., 2023 Annual Report Summary of Huatai Securities Co., Ltd., 2023 Corporate Social Responsibility Report of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Sixth Meeting of the Sixth Session of the Supervisory Committee, Announcement by Huatai Securities Co., Ltd. on Re-appointment of the Accounting Firms, Announcement on Annual Profit Distribution Plan of Huatai Securities Co., Ltd. for 2023, Announcement by Huatai Securities Co., Ltd. on Estimated Ordinary Transactions with Related Parties for 2024, Report on Performance of Duties by Independent Directors of Huatai Securities Co., Ltd. for 2023, Report on Performance of Duties by the Audit Committee of the Board of Huatai Securities Co., Ltd. for 2023, Annual Internal Control Evaluation Report of Huatai Securities Co., Ltd. for 2023, Special Opinions from the Board of Huatai Securities Co., Ltd. on the Independence of Independent Directors, Evaluation Report on Performance of Duties by the Annual Audit Accounting Firm for 2023 of Huatai Securities Co., Ltd., Report on Performance of Supervisory Duties by the Annual Audit Accounting Firm for 2023 of the Audit Committee of the Board of Huatai Securities Co., Ltd., 2023 Financial Statements and Audit Report of Huatai Securities Co., Ltd., Annual Internal Control Audit Report of Huatai Securities Co., Ltd. in 2023, Special Explanation of Huatai Securities Co., Ltd. on Occupation of Non-operating Funds and Transaction of Other Associated Funds for 2023, System regarding Insider Registration and Management and Confidentiality of Huatai Securities Co., Ltd. (Revised in 2024) ![]() 363 No. Date Announcement 22 2024-04-03 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended March 31, 2024 23 2024-04-13 Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Sixth Session of the Supervisory Committee, Announcement by Huatai Securities Co., Ltd. On Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares, Announcement by Huatai Securities Co., Ltd. on Repurchase and Cancellation of Part of the Restricted A Shares, Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Fulfilment of Conditions for Release from Selling Restriction of the Second Unlocking Period and Repurchase and Cancellation of Part of the Restricted Shares under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. 24 2024-04-18 H Share Announcement of HTSC (Date of Board Meeting) 25 2024-04-26 Announcement by Huatai Securities Co., Ltd. on the Disposal of the Entire Equity Interests Held in AssetMark Financial Holdings, Inc. (a Holding Subsidiary in the United States), Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the Sixth Session of the Board 26 2024-04-30 Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Tenth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the Sixth Session of the Supervisory Committee, First Quarterly Report of 2024 of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resignation of Independent Non-executive Director 27 2024-05-08 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended April 30, 2024 28 2024-05-10 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee ![]() 364 No. Date Announcement 29 2024-05-11 Announcement by Huatai Securities Co., Ltd. on Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares and Listing 30 2024-05-13 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 31 2024-05-18 Notice of Convening 2023 Annual General Meeting and 2024 First A Share Class Meeting by Huatai Securities Co., Ltd., Documents of 2023 Annual General Meeting, 2024 First A Share Class Meeting, 2024 First H Share Class Meeting of Huatai Securities Co., Ltd., Statement and Undertaking of Nominator of Independent Directors of Huatai Securities Co., Ltd., Statement and Undertaking of Candidate for Independent Directors of Huatai Securities Co., Ltd., Review Opinions from Nomination Committee of the Board of Huatai Securities Co., Ltd. on Nomination of Candidates for Independent Non-executive Directors of the Sixth Session of the Board 32 2024-06-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended May 31, 2024 33 2024-06-07 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 34 2024-06-12 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 35 2024-06-21 Announcement by Huatai Securities Co., Ltd. on the Resolutions of 2023 Annual General Meeting, 2024 First A Share Class Meeting and 2024 First H Share Class Meeting, Legal Opinions from King & Wood Mallesons on 2023 Annual General Meeting, 2024 First A Share Class Meeting and 2024 First H Share Class Meeting of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Notice to Creditors Regarding the Repurchase and Cancellation of Part of the Restricted A Shares to Reduce Registered Capital, Announcement by Huatai Securities Co., Ltd. on Approval of Qualification as Director, Announcement by Huatai Securities Co., Ltd. on Approval of Qualification as Supervisor, Announcement by Huatai Securities Co., Ltd. On the Resolutions of the Eleventh Meeting of the Sixth Session of the Board, 2024 Action Plan of “Corporate Value and Return Enhancement” of Huatai Securities Co., Ltd. ![]() 365 No. Date Announcement 36 2024-07-05 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended June 30, 2024 37 2024-07-12 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance according to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 38 2024-07-16 Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly- owned Subsidiary Conducting Issuance according to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 39 2024-08-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended July 31, 2024 40 2024-08-09 Announcement by Huatai Securities Co., Ltd. on Implementation of Equity Distribution for 2023 41 2024-08-10 Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for the Registration of Public Issuance of Subordinated Corporate Bonds to Professional Investors 42 2024-08-21 H Share Announcement of HTSC (Date of Board Meeting) 43 2024-08-23 Announcement by Huatai Securities Co., Ltd. on the Briefing on the Interim Results of 2024 44 2024-08-31 2024 Interim Report of Huatai Securities Co., Ltd., 2024 Interim Report Summary of Huatai Securities Co., Ltd., Announcement on Interim Profit Distribution Plan of Huatai Securities Co., Ltd. for 2024, Announcement by Huatai Securities Co., Ltd. on Adjustment to the Repurchase Price Applicable to the Restricted A Shares, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Twelfth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the Sixth Session of the Supervisory Committee, Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Adjustment to the Repurchase Price under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. 45 2024-09-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended August 31, 2024, Announcement by Huatai Securities Co., Ltd. on the Completion of Disposal of all the Shares Held in AssetMark Financial Holdings, Inc. (a Holding Subsidiary in the United States) ![]() 366 No. Date Announcement 46 2024-09-14 Announcement in relation to Implementation of Repurchase and Cancellation of Part of the Restricted A Shares of Huatai Securities Co., Ltd., Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Relevant Matters on Repurchase and Cancellation of Part of the Restricted Shares under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. 47 2024-09-21 H Share Announcement of HTSC (Next Day Disclosure Return) 48 2024-10-08 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended September 30, 2024 49 2024-10-16 Announcement by Huatai Securities Co., Ltd. on Completion of the Change in Industrial and Commercial Registration of Registered Capital and the Amendments to the Articles of Association, Articles of Association of Huatai Securities Co., Ltd. (Revised for the Second Time in 2024) 50 2024-10-17 Announcement by Huatai Securities Co., Ltd. on Implementation of Interim Equity Distribution for 2024 51 2024-10-19 H Share Announcement of HTSC (Date of Board Meeting), Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for Participation in the Swap Facility Business 52 2024-10-23 Announcement by Huatai Securities Co., Ltd. on the Briefing on the Third Quarterly Results of 2024 53 2024-10-31 Third Quarterly Report of 2024 of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Thirteenth Meeting of the Sixth Session of the Board 54 2024-11-06 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended October 31, 2024 55 2024-12-05 H Share Announcement of HTSC – Monthly Return of Equity Issuer on Movements in Securities for the month ended November 30, 2024 56 2024-12-21 Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Fourteenth Meeting of the Sixth Session of the Board, Administrative System of Huatai Securities Co., Ltd. regarding the Shares of the Company Held by Directors, Supervisors and Senior Management (Revised in 2024) ![]() 367 2. During the Reporting Period, the Company disclosed the following matters on the HKEXnews website of HKEX (www.hkexnews.hk): No. Date Announcement 1 2024-01-04 Monthly Return of Equity Issuer on Movements in Securities for the month ended December 31, 2023 2 2024-01-09 Announcement in relation to Implementation of the Cancellation of the Repurchased A Shares 3 2024-01-10 Next Day Disclosure Return 4 2024-01-15 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (First tranche) (Type 1) 5 2024-01-22 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 6 2024-01-23 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Subordinated Bonds Publicly Issued to Professional Investors (First tranche) 7 2024-01-25 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 8 2024-01-26 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 9 2024-01-29 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Change of General Manager of Huatai Securities (Shanghai) Asset Management Co., Ltd. 10 2024-01-31 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Third tranche) 11 2024-02-01 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee ![]() 368 No. Date Announcement 12 2024-02-02 Announcement on Completion of the Change of Registered Capital and the Amendments to the Articles of Association, Articles of Association, Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (First tranche), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Fourth tranche), Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly-owned Subsidiary Providing Guarantee 13 2024-02-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended January 31, 2024 14 2024-02-06 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 15 2024-02-07 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 16 2024-02-08 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 17 2024-02-18 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 18 2024-02-20 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Fifth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Fifth tranche) (Type 2) 19 2024-02-27 Letter to Registered Shareholders and Reply Form – Arrangement of Electronic Dissemination of Corporate Communications, Letter to Non- registered Shareholders and Reply Form – Arrangement of Electronic Dissemination of Corporate Communications 20 2024-02-28 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Appointment of General Manager of Huatai Securities (Shanghai) Asset Management Co., Ltd. 21 2024-03-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended February 29, 2024 ![]() 369 No. Date Announcement 22 2024-03-12 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) 23 2024-03-15 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Change of Chairman of Jiangsu Equity Exchange Co., Ltd. 24 2024-03-18 Date of Board Meeting 25 2024-03-19 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for the Registration of Public Issuance of Corporate Bonds to Professional Investors 26 2024-03-20 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Briefing on the Annual Results of 2023 27 2024-03-28 Results Announcement for the Year Ended December 31, 2023, Final Dividend for the Year Ended December 31, 2023, 2023 Corporate Social Responsibility Report, Overseas Regulatory Announcements – 2023 Annual Report of Huatai Securities Co., Ltd., 2023 Annual Report Summary of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Sixth Meeting of the Sixth Session of the Supervisory Committee, Announcement by Huatai Securities Co., Ltd. on Re-appointment of the Accounting Firms, Announcement on Annual Profit Distribution Plan of Huatai Securities Co., Ltd. for 2023, Announcement by Huatai Securities Co., Ltd. on Estimated Ordinary Transactions with Related Parties for 2024, Report on Performance of Duties by Independent Directors of Huatai Securities Co., Ltd. for 2023, Report on Performance of Duties by the Audit Committee of the Board of Huatai Securities Co., Ltd. for 2023, Annual Internal Control Evaluation Report of Huatai Securities Co., Ltd. for 2023, Special Opinions from the Board of Huatai Securities Co., Ltd. on the Independence of Independent Directors, Evaluation Report on Performance of Duties by the Annual Audit Accounting Firm for 2023 of Huatai Securities Co., Ltd., Report on Performance of Supervisory Duties by the Annual Audit Accounting Firm for 2023 of the Audit Committee of the Board of Huatai Securities Co., Ltd., 2023 Financial Statements and Audit Report of Huatai Securities Co., Ltd., Annual Internal Control Audit Report of Huatai Securities Co., Ltd. in 2023, Special Explanation of Huatai Securities Co., Ltd. on Occupation of Non-operating Funds and Transaction of Other Associated Funds for 2023, System regarding Insider Registration and Management and Confidentiality of Huatai Securities Co., Ltd. (Revised in 2024) ![]() 370 No. Date Announcement 28 2024-04-02 Monthly Return of Equity Issuer on Movements in Securities for the month ended March 31, 2024 29 2024-04-12 Announcement in relation to Repurchase and Cancellation of Part of the Restricted A Shares, Overseas Regulatory Announcements – Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Fulfilment of Conditions for Release from Selling Restriction of the Second Unlocking Period and Repurchase and Cancellation of Part of the Restricted Shares under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Fulfilment of Conditions for Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Seventh Meeting of the Sixth Session of the Supervisory Committee, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the Sixth Session of the Board 30 2024-04-17 Date of Board Meeting 31 2024-04-22 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Second tranche), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2020 Corporate Bonds Publicly Issued to Qualified Investors (Second tranche) 32 2024-04-25 Discloseable Transaction – Disposal of the Issued Share Capital of ASSETMARK FINANCIAL HOLDINGS, INC. by Way of Merger, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the Sixth Session of the Board 33 2024-04-26 2023 Annual Report, Notification Letter and Request Form to Registered Shareholders, Notification Letter and Request Form to Non- registered Holders 34 2024-04-29 First Quarterly Report of 2024, Proposed Change of Independent Non-executive Director and Proposed Change of Non-employee Representative Supervisor, Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Tenth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eighth Meeting of the Sixth Session of the Supervisory Committee 35 2024-04-30 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type 2) ![]() 371 No. Date Announcement 36 2024-05-07 Monthly Return of Equity Issuer on Movements in Securities for the month ended April 30, 2024 37 2024-05-09 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 38 2024-05-10 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Release from Selling Restriction of the Second Lock-up Period under the Restricted Share Incentive Scheme of A Shares and Listing, Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to Professional Investors (Third tranche) 39 2024-05-12 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 40 2024-05-14 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2020 Corporate Bonds Publicly Issued to Qualified Investors (Third tranche) 41 2024-05-17 Notice of 2023 AGM, Notice of the 2024 First H Share Class Meeting, Circular of 2023 Annual General Meeting, Form of Proxy of Holders of H Shares for Use at the AGM to be Held on June 20, 2024, Form of Proxy of Holders of H Shares for Use at the 2024 First H Share Class Meeting to be Held on June 20, 2024, Notification Letter and Request Form to Registered Shareholders, Notification Letter and Request Form to Non-registered Holders, Final Dividend for the Year Ended December 31, 2023 (Update), Overseas Regulatory Announcements – Statement and Undertaking of Nominator of Independent Directors of Huatai Securities Co., Ltd., Statement and Undertaking of Candidate for Independent Directors of Huatai Securities Co., Ltd., Review Opinions from Nomination Committee of the Board of Huatai Securities Co., Ltd. on Nomination of Candidates for Independent Non-executive Directors of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Fourth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to Professional Investors (Fourth tranche) (Type 2) ![]() 372 No. Date Announcement 42 2024-06-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended May 31, 2024 43 2024-06-06 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 44 2024-06-07 Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Fifth tranche) (Type 1) 45 2024-06-11 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 46 2024-06-14 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type 1) 47 2024-06-20 Poll Results of 2023 Annual General Meeting, 2024 First A Share Class Meeting and 2024 First H Share Class Meeting; Distribution of Final Dividend; Change of Independent Non-Executive Director; Adjustment to the Composition Plan of the Special Committees of the Board; and Change of Non-Employee Representative Supervisor, List of Directors and Their Role and Function, Final Dividend for the Year Ended December 31, 2023 (Update), 2024 Action Plan of “Corporate Value and Return Enhancement”, Overseas Regulatory Announcements – Legal Opinions from King & Wood Mallesons on 2023 Annual General Meeting, 2024 First A Share Class Meeting and 2024 First H Share Class Meeting of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on Notice to Creditors Regarding the Repurchase and Cancellation of Part of the Restricted A Shares to Reduce Registered Capital, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Eleventh Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on Approval of Qualification as Supervisor, Announcement by Huatai Securities Co., Ltd. on Approval of Qualification as Director 48 2024-07-02 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to Professional Investors (Fifth tranche) ![]() 373 No. Date Announcement 49 2024-07-04 Monthly Return of Equity Issuer on Movements in Securities for the month ended June 30, 2024, Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (Second tranche) 50 2024-07-11 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 51 2024-07-15 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Indirectly Wholly-owned Subsidiary Conducting Issuance According to Medium-term Notes Plan and with Wholly- owned Subsidiary Providing Guarantee 52 2024-08-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended July 31, 2024 53 2024-08-06 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds Publicly Issued to Professional Investors (Second tranche) 54 2024-08-08 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Implementation of Equity Distribution for 2023 55 2024-08-09 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for the Registration of Public Issuance of Subordinated Corporate Bonds to Professional Investors 56 2024-08-15 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds Publicly Issued to Professional Investors (Third tranche) 57 2024-08-19 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Seventh tranche) 58 2024-08-20 Date of Board Meeting 59 2024-08-22 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Briefing on the Interim Results of 2024 60 2024-08-29 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Seventh tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (Fourth tranche) ![]() 374 No. Date Announcement 61 2024-08-30 Interim Results Announcement for the Six Months ended June 30, 2024, Announcement on Adjustment to the Repurchase Price Applicable to the Restricted A Shares, 2024 Interim Profit Distribution, Interim Dividend for the Six Months ended June 30, 2024, Overseas Regulatory Announcements – 2024 Interim Report of Huatai Securities Co., Ltd., 2024 Interim Report Summary of Huatai Securities Co., Ltd., Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Twelfth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Ninth Meeting of the Sixth Session of the Supervisory Committee, Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Adjustment to the Repurchase Price under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. 62 2024-09-02 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to Professional Investors (Seventh tranche) (Type 2), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (First tranche) 63 2024-09-04 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2023 Short-term Corporate Bonds Publicly Issued to Professional Investors (Third tranche) 64 2024-09-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended August 31, 2024, Voluntary Announcement – Completion of Disposal of All of Shares of AssetMark Financial Holdings, Inc. 65 2024-09-06 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (Fifth tranche) 66 2024-09-09 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (First tranche), Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2023 Short- term Corporate Bonds Publicly Issued to Professional Investors (Fourth tranche) 67 2024-09-12 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type 1) ![]() 375 No. Date Announcement 68 2024-09-13 Announcement in relation to Implementation of Repurchase and Cancellation of Part of the Restricted A Shares of Huatai Securities Co., Ltd., Overseas Regulatory Announcement – Legal Opinions from Beijing King & Wood Mallesons (Nanjing) Law Firm on Relevant Matters on Repurchase and Cancellation of Part of the Restricted Shares under the Restricted Share Incentive Scheme of A Shares of Huatai Securities Co., Ltd. 69 2024-09-20 Next Day Disclosure Return 70 2024-09-27 2024 Interim Report, Notification Letter and Request Form to Registered Shareholders, Notification Letter and Request Form to Non- Registered Holders 71 2024-10-07 Monthly Return of Equity Issuer on Movements in Securities for the month ended September 30, 2024 72 2024-10-09 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type 2) 73 2024-10-14 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type 2), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (Third tranche), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (Second tranche) 74 2024-10-15 Announcement on Completion of the Change of Registered Capital and the Amendment to the Articles of Association, the Articles of Association ![]() 376 No. Date Announcement 75 2024-10-16 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Implementation of Interim Equity Distribution for 2024, Announcement on Coupon Rate of 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche), Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2021 Corporate Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type 1) 76 2024-10-18 Date of Board Meeting, Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Obtaining Approval by the CSRC for Participation in the Swap Facility Business, Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Corporate Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type 2), Announcement on Issuance Results for 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 77 2024-10-21 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (Second tranche) 78 2024-10-22 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on the Briefing on the Third Quarterly Results of 2024 79 2024-10-30 Third Quarterly Report of 2024, Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Thirteenth Meeting of the Sixth Session of the Board, Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Tenth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Publicly Issued to Professional Investors (Tenth tranche) (Type 2) 80 2024-11-05 Monthly Return of Equity Issuer on Movements in Securities for the month ended October 31, 2024 81 2024-11-06 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2020 Subordinated Bonds Publicly Issued to Professional Investors (First tranche) 82 2024-11-11 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2021 Perpetual Subordinated Bonds Publicly Issued to Professional Investors (Third tranche) ![]() 377 No. Date Announcement 83 2024-11-12 Overseas Regulatory Announcements – Announcement on Coupon Rate of 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche), Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type 1) 84 2024-11-13 Overseas Regulatory Announcement – Announcement on Issuance Results for 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Second tranche) 85 2024-11-14 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (Sixth tranche) (Type 2) 86 2024-11-20 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Non-publicly Issued to Professional Investors (First tranche) (Type 2) 87 2024-11-22 Overseas Regulatory Announcement – Announcement on Coupon Rate of 2024 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 88 2024-11-26 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds Publicly Issued to Professional Investors (Seventh tranche) (Type 1), Announcement on Issuance Results for 2024 Perpetual Subordinated Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (First tranche) 89 2024-12-04 Monthly Return of Equity Issuer on Movements in Securities for the month ended November 30, 2024 90 2024-12-05 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type 1), Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2022 Corporate Bonds Publicly Issued to Professional Investors (Eighth tranche) (Type 2) 91 2024-12-06 Overseas Regulatory Announcement – Announcement on Coupon Rate of 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) ![]() 378 No. Date Announcement 92 2024-12-09 Announcement by Huatai Securities Co., Ltd. on 2024 Interest Payment for 2023 Corporate Bonds Non-publicly Issued to Professional Investors (Second tranche) (Type 2) 93 2024-12-10 Announcement on Issuance Results for 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Third tranche) 94 2024-12-12 Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2024 and Delisting for 2022 Corporate Bonds Publicly Issued to Professional Investors (Ninth tranche) (Type 1) 95 2024-12-20 Overseas Regulatory Announcements – Announcement by Huatai Securities Co., Ltd. on the Resolutions of the Fourteenth Meeting of the Sixth Session of the Board, Administrative System of Huatai Securities Co., Ltd. regarding the Shares of the Company Held by Directors, Supervisors and Senior Management (Revised in 2024), Announcement on Coupon Rate of 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 96 2024-12-24 Overseas Regulatory Announcement – Announcement on Issuance Results for 2024 Short-term Corporate Bonds of Huatai Securities Co., Ltd. Publicly Issued to Professional Investors (Fourth tranche) 97 2024-12-31 Overseas Regulatory Announcement – Announcement by Huatai Securities Co., Ltd. on Settlement of the Principal and Interest of 2025 and Delisting for 2023 Corporate Bonds Publicly Issued to Professional Investors (First tranche) ![]() 379 3. During the Reporting Period, the Company disclosed the following matters on the website of the London Stock Exchange (www.londonstockexchange.com): No. Date Announcement 1 2024-01-09 IMPLEMENTATION OF CANCELLATION OF PART OF A SHARES 2 2024-02-02 COMPLETION OF THE CHANGE OF REGISTERED CAPITAL, ARTICLES OF ASSOCIATION 3 2024-03-28 2023 ANNUAL FINANCIAL REPORT, 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT 4 2024-04-12 REPURCHASE AND CANCELLATION OF PART OF A SHARES 5 2024-04-25 DISPOSAL OF THE ISSUED SHARE CAPITAL OF ASSETMARK 6 2024-04-26 2023 ANNUAL REPORT 7 2024-04-29 FIRST QUARTERLY REPORT OF 2024, PROPOSED CHANGE OF DIRECTOR AND SUPERVISOR 8 2024-05-17 NOTICE OF AGM AND 2024 FIRST A SHARE CLASS MEETING 9 2024-06-20 RESULTS OF AGM AND A SHARE & H SHARE CLASS MEETING, LIST OF DIRECTORS AND THEIR ROLE AND FUNCTION 10 2024-08-08 IMPLEMENTATION OF EQUITY DISTRIBUTION FOR 2023 11 2024-08-30 INTERIM RESULTS ANNOUNCEMENT, ADJUSTMENT TO THE REPURCHASE PRICE OF A SHARES, 2024 INTERIM PROFIT DISTRIBUTION 12 2024-09-05 COMPLETION OF DISPOSAL OF ASSETMARK 13 2024-09-13 REPURCHASE AND CANCELLATION OF PART OF A SHARES 14 2024-09-27 2024 INTERIM REPORT 15 2024-10-15 COMPLETION OF THE CHANGE OF REGISTERED CAPITAL, ARTICLES OF ASSOCIATION 16 2024-10-16 IMPLEMENTATION OF 2024 INTERIM EQUITY DISTRIBUTION 17 2024-10-30 THIRD QUARTERLY REPORT OF 2024 ![]() HUATAI SECURITIES CO., LTD. (A joint stock company incorporated in the People's Republic of China with limited liability) Independent Auditor's Report and Consolidated Financial Statements For the year ended 31 December 2024 (Prepared under International Financial Reporting Standards) ![]() HUATAI SECURITIES CO., LTD. INDEPENDENT AUDITOR'S REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS PAGE(S) INDEPENDENT AUDITOR'S REPORT 1 - 7 CONSOLIDATED STATEMENT OF PROFIT OR LOSS 8 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 10 - 12 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 13 - 14 CONSOLIDATED STATEMENT OF CASH FLOWS 15 - 17 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 18 - 193 ![]() - 1 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. (A joint stock company incorporated in the People's Republic of China with limited liability) Opinion We have audited the consolidated financial statements of Huatai Securities Co., Ltd. (the "Company") and its subsidiaries (collectively referred to as the "Group") set out on pages 8 to 193, which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statement of profit or loss, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information and other explanatory information. In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2024, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRS Accounting Standards") issued by the International Accounting Standards Board ("IASB") and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statement s section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. ![]() - 2 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT - continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Key Audit Matters - continued Valuations of financial instruments classified under the fair value hierarchy as level 3 The Key Audit Matter How our audit addressed the key audit matter The fair value of the Group's financial instruments is mainly based on active market quoted prices or valuation techniques. For level 3 financial instruments, including debt instruments, unlisted equity investments, private equity funds and over-the-counter derivative financial instruments, the Group uses valuation techniques to measure fair values. As disclosed in Note 62 to the consolidated financial statements, as at 31 December 2024, the fair value of the Group's level 3 financial assets and financial liabilities amounted to RMB 9,239 million and RMB 10,632 million, respectively. We identified valuation of level 3 financial instruments as a key audit matter because the amount involved was significant and the selection of valuation techniques and determination of unobservable inputs required significant judgements and estimations. Our procedures in respect of this key audit matter included the following: • Understanding and assessing the process and key controls relating to the valuation of level 3 financial instruments and testing the operating effectiveness of these controls; • Evaluating the appropriateness of the valuation models used by the management for level 3 financial instruments; • On a sample basis, reading the investment agreements to understand the relevant investment terms, identifying any conditions that were relevant to the valuations of these financial instruments and assessing the application in the valuation; • Evaluating, on a sample basis, the appropriateness of the significant unobservable and observable inputs which were used for measuring the fair value of level 3 financial instruments; • Where appropriate, performing independent valuations of level 3 financial instruments, on a sample basis, and comparing these valuations with the Group's valuations, with the involvement of our valuation experts. ![]() - 3 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT - continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Key Audit Matters - continued Measurement of expected credit losses ("ECL") for margin accounts receivable and securities-backed lendings The Key Audit Matter How our audit addressed the key audit matter The Group uses an expected credit loss ("ECL") model to determine the loss allowance for margin accounts receivable and securities- backed lendings. The management exercised significant judgements and estimations in its assessment of ECL allowance of margin accounts receivable and securities-backed lendings. They included the determination of staging of the relevant financial assets whether the credit risk had increased significantly and credit impairment events had occurred; the determination of key parameters used in the ECL model, including loss rate, exposure at default and forward- looking information for Stage 1 and 2 financial assets; the determination of recoverable amount in respect of Stage 3 financial assets based on value of collateral and repayment ability of borrowers. As at 31 December 2024, the Group held margin accounts receivable of RMB134,312 million, less impairment allowance of RMB1,766 million as disclosed in Note 37 to the consolidated financial statements and securities-backed lendings of RMB3,539 million, less impairment allowance of RMB488 million as disclosed in Note 30 to the consolidated financial statements. We identified the measurement of ECL for the Group's margin accounts receivable and securities-backed lendings as a key audit matter due to the significance of these assets to the Group's consolidated financial statements and the significant management estimations and judgments required in the measurement. Our procedures in respect of this key audit matter included the following: • Understanding and assessing the process and key controls relating to the measurement of ECL for margin accounts receivable and securities-backed lendings and testing the operating effectiveness of these controls; • Evaluating the appropriateness of the ECL model, the critical assumptions and parameters used in the model with the involvement of our internal experts; • Evaluating the appropriateness of the criteria for significant increase in credit risk ("SICR") and financial assets that were credit impaired determined by management and, on a sample basis, testing the application of such criteria to individual margin accounts receivable and securities- backed lendings; • Examining the correctness of major inputs to the ECL model for selected samples, including exposure at default and loss rate, and the mathematical accuracy of the calculation of ECL; • For credit-impaired financial assets, on a sample basis, assessing the reasonableness of expected credit losses made by management based on repayment ability of borrowers, value of collateral and other credit enhancements, as appropriate. ![]() - 4 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT - continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Key Audit Matters - continued Consolidation of structured entities The Key Audit Matter How our audit addressed the key audit matter The Group held interests as investor and/or acted as investment manager in various structured entities including asset management schemes, investment funds and partnerships. As disclosed in Note 57, as at 31 December 2024, the total assets of the consolidated structured entities amounted to RMB 35,723 million and the total assets of the unconsolidated structured entities sponsored by the Group amounted to RMB 621,057 million, respectively. The Group consolidated the structured entities which it controlled. The principle of control sets out the following three elements of control: (a) power over the investee; (b) exposure, or rights, to variable returns from involvement with the investee; and (c) the ability to use power over the investee to affect the amount of the investor's returns. The Group considered its power, arising from the rights entitled directly or indirectly, over the structured entities, and assessed whether the combination of investments it held together with its remuneration created exposure to variability of returns from the structured entities that are of such significance that it indicated the Group controlled the structured entities and should consolidated these structured entities. We identified consolidation of structured entities as a key audit matter due to the significant judgments applied by the management in determining whether a structured entity was required to be consolidated by the Group and the significance of the impact arising from consolidating these structured entities to the Group's consolidated financial statements as a whole. Our procedures in respect of this key audit matter included the following: • Understanding and assessing the process and key controls relating to the consolidation of structured entities and testing the operating effectiveness of these controls; • Selecting samples to perform the following audit procedures: - Checking agreements relating to the structured entity and understanding the purpose of its set up; assessing the appropriateness of the Group's judgement on the power the Group had over the structured entity according to the Group's rights and obligations under different transaction structures and its involvement with the structured entity; - verifying the analysis on the Group's variable return which included, but was not limited to, fixed management fees and performance fees obtained through acting as asset manager, as well as the returns obtained from holding an interest in a structured entity; - analysing the scope of the Group's decision-making power over the structured entity, the substantive rights held by other participants, the level of remuneration obtained from providing asset management services and the risk of variable return borne by holding other interests in the structured entity and, checking the Group's analysis on the magnitude and variability of variable return, assessing whether the Group acts as principal or agent in the structured entities; - assessing the management's judgment on the consolidation of structured entities through carrying out the above procedures. ![]() - 5 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT – continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Other Information The directors of the Company are responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements and our auditor's report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Directors and Those Charged with Governance for the Consolidated Financial Statements The directors of the Company are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards issued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group's financial reporting process. Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. ![]() - 6 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT - continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Auditor's Responsibilities for the Audit of the Consolidated Financial Statements - continued As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. ![]() - 7 - DTT(A)(25)I00005 INDEPENDENT AUDITOR'S REPORT - continued TO THE SHAREHOLDERS OF HUATAI SECURITIES CO., LTD. - continued (A joint stock company incorporated in the People's Republic of China with limited liability) Auditor's Responsibilities for the Audit of the Consolidated Financial Statements - continued We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Deloitte Touche Tohmatsu Certified Public Accountants LLP Shanghai, People's Republic of China 28 March 2025 ![]() HUATAI SECURITIES CO., LTD. - 8 - CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Year ended 31 December Notes 2024 2023 Revenue Fee and commission income 4 17,259,336 18,940,982 Interest income 5 13,560,994 14,615,232 Net investment gains 6 14,500,758 11,670,400 45,321,088 45,226,614 Other income and gains 7 8,964,395 7,033,807 Total revenue, gains and other income 54,285,483 52,260,421 Fee and commission expenses 8 (4,310,977) (4,328,290) Interest expenses 9 (10,856,424) (13,662,909) Staff costs 10 (10,074,621) (9,371,842) Depreciation and amortisation expenses 11 (1,774,611) (1,856,409) Tax and surcharges 12 (179,417) (187,664) Other operating expenses 13 (13,844,777) (11,644,373) Impairment losses under expected credit loss model, net of reversal 14 (246,269) 410,946 Total expenses (41,287,096) (40,640,541) Operating profit 12,998,387 11,619,880 Share of profit of associates and joint ventures 2,353,953 2,584,784 Profit before income tax 15,352,340 14,204,664 Income tax expense 15 166,534 (1,168,404) Profit for the year 15,518,874 13,036,260 Attributable to: Shareholders of the Company 15,351,162 12,750,633 Non-controlling interests 167,712 285,627 15,518,874 13,036,260 Earnings per share (Expressed in Renminbi per share) 19 - Basic 1.62 1.35 - Diluted 1.62 1.33 The notes on pages 18 to 193 form part of these consolidated financial statements. ![]() HUATAI SECURITIES CO., LTD. - 9 - CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Year ended 31 December Note 2024 2023 Profit for the year 15,518,874 13,036,260 Other comprehensive income/(expense) for the year Items that will not be reclassified to profit or loss: Equity instruments at fair value through other comprehensive (expense) / income - Net change in fair value (15) 17,759 - Income tax impact 97 (4,760) Items that may be reclassified subsequently to profit or loss: Net loss from debt instruments at fair value through other comprehensive income 58,221 106,977 Fair value gain on hedging instruments designated in cash flow hedges (83,916) (3,571) Share of other comprehensive income of associates and joint ventures 367,987 (40,580) Exchange differences on translation of financial statements in foreign currencies 267,501 262,953 Income tax impact (12,120) (22,779) Other comprehensive income for the year, net of income tax 18 597,755 315,999 Total comprehensive income for the year 16,116,629 13,352,259 Attributable to: Shareholders of the Company 15,985,388 13,024,562 Non-controlling interests 131,241 327,697 Total 16,116,629 13,352,259 The notes on pages 18 to 193 form part of these consolidated financial statements. ![]() HUATAI SECURITIES CO., LTD. - 10 - CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) As at 31 December Notes 2024 2023 Non-current assets Property and equipment 20 6,489,412 6,519,710 Investment properties 21 182,131 136,284 Goodwill 22 51,342 3,419,332 Land-use rights and other intangible assets 23 2,035,899 7,515,260 Interests in associates 25 21,446,915 19,496,027 Interests in joint ventures 26 999,113 1,299,405 Debt instruments at amortised cost 27 40,854,764 45,404,582 Financial assets held under resale agreements 30 199,610 - Debt instruments at fair value through other comprehensive income 28 5,938,076 15,207,952 Equity instruments at fair value through other comprehensive income 29 125,860 124,506 Financial assets at fair value through profit or loss 31 5,292,149 7,952,021 Refundable deposits 32 33,451,298 40,544,278 Deferred tax assets 33 1,591,926 702,722 Other non-current assets 34 240,951 311,789 Total non-current assets 118,899,446 148,633,868 Current assets Accounts receivable 35 5,587,233 9,743,761 Other receivables, prepayments and other current assets 36 2,880,227 2,539,985 Margin accounts receivable 37 132,546,005 112,341,094 Debt instruments at amortised cost 27 6,938,958 4,712,230 Financial assets held under resale agreements 30 15,028,791 12,460,232 Debt instruments at fair value through other comprehensive income 28 4,197,477 1,054,048 Financial assets at fair value through profit or loss 31 296,245,608 405,127,363 Derivative financial assets 38 9,991,125 16,259,881 Clearing settlement funds 39 11,136,758 9,129,266 Cash held on behalf of brokerage clients 40 170,880,569 137,210,295 Cash and bank balances 41 39,521,458 46,296,366 694,954,209 756,874,521 Assets classified as held for sale 24(c) 416,839 - Total current assets 695,371,048 756,874,521 Total assets 814,270,494 905,508,389 ![]() HUATAI SECURITIES CO., LTD. - 11 - CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued AS AT 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) As at 31 December Notes 2024 2023 Current liabilities Short-term bank loans 43 3,362,980 11,478,573 Short-term debt instruments issued 44 28,852,939 25,475,507 Placements from other financial institutions 45 30,113,661 39,536,527 Accounts payable to brokerage clients 46 184,586,976 144,701,360 Employee benefits payable 47 4,589,013 4,151,439 Other payables and accruals 48 75,436,419 113,884,799 Contract liabilities 49 104,692 177,500 Current tax liabilities 179,973 493,520 Financial assets sold under repurchase agreements 50 121,048,168 144,056,149 Financial liabilities at fair value through profit or loss 51 33,474,911 43,710,135 Derivative financial liabilities 38 10,943,785 16,848,878 Long-term bonds due within one year 52 41,787,436 44,803,489 534,480,953 589,317,876 Liabilities associated with assets classified as held for sale 24(c) 75,402 - Total current liabilities 534,556,355 589,317,876 Net current assets 160,814,693 167,556,645 Total assets less current liabilities 279,714,139 316,190,513 Non-current liabilities Derivative financial liabilities 38 - 32,763 Long-term bonds 53 73,671,381 115,012,512 Long-term bank loans 54 - 647,052 Non-current employee benefits payable 47 6,116,922 6,431,780 Deferred tax liabilities 33 476,548 1,960,663 Financial liabilities at fair value through profit or loss 51 6,973,421 8,961,031 Other payables and accruals 48 581,946 927,280 Total non-current liabilities 87,820,218 133,973,081 Net assets 191,893,921 182,217,432 ![]() HUATAI SECURITIES CO., LTD. - 12 - CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued AS AT 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) As at 31 December Note 2024 2023 Equity Share capital 55 9,027,302 9,074,663 Other equity instruments 55 28,300,000 25,700,000 Treasury shares 55 (100,545) (1,064,173) Reserves 55 105,753,021 102,967,146 Retained profits 55 48,694,124 42,430,731 Total equity attributable to shareholders of the Company 191,673,902 179,108,367 Non-controlling interests 220,019 3,109,065 Total equity 191,893,921 182,217,432 The notes on pages 18 to 193 form part of these consolidated financial statements. Approved and authorised for issue by the board of directors on 28 March 2025. Zhang Wei Wang Bing Chairman of the Board, Director Director ![]() HUATAI SECURITIES CO., LTD. - 13 - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Attributable to shareholders of the Company Reserves Share capital Other equity instruments Treasury shares Capital reserve Surplus reserve General reserve Fair value reserve Cash flow hedges reserve Translation reserve Retained profits Total Non- controlling interests Total equity (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 38) (Note 55) (Note 55) As at 1 January 2024 9,074,663 25,700,000 (1,064,173) 69,602,190 8,838,000 23,458,335 142,633 39,072 886,916 42,430,731 179,108,367 3,109,065 182,217,432 Changes in equity for 2024 Profit for the year - - - - - - - - - 15,351,162 15,351,162 167,712 15,518,874 Other comprehensive income / (expense) for the year - - - - - - 414,170 (83,916) 303,972 - 634,226 (36,471) 597,755 Total comprehensive income / (expense) for the year - - - - - - 414,170 (83,916) 303,972 15,351,162 15,985,388 131,241 16,116,629 Issue of perpetual subordinated bonds - 2,600,000 - (2,158) - - - - - - 2,597,842 - 2,597,842 Disposal of subsidiaries - - - - - - - - - - - (3,025,855) (3,025,855) Repurchase and cancellation of shares (47,361) - 851,150 (803,789) - - - - - - - - - Equity-settled share-based payments - - 112,478 75,974 - - - - - - 188,452 20,574 209,026 Appropriation to surplus reserve - - - - 889,075 - - - - (889,075) - - - Appropriation to general reserve - - - - - 2,026,732 - - - (2,026,732) - - - Dividends declared to ordinary shareholders for the year - - - - - - - - - (5,236,731) (5,236,731) (57,747) (5,294,478) Dividends payable to perpetual subordinated bonds - - - - - - - - - (935,130) (935,130) - (935,130) Others - - - (34,143) (14) (28) - - - (101) (34,286) 42,741 8,455 As at 31 December 2024 9,027,302 28,300,000 (100,545) 68,838,074 9,727,061 25,485,039 556,803 (44,844) 1,190,888 48,694,124 191,673,902 220,019 191,893,921 ![]() HUATAI SECURITIES CO., LTD. - 14 - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Attributable to shareholders of the Company Reserves Share capital Other equity instruments Treasury shares Capital reserve Surplus reserve General reserve Fair value reserve Cash flow hedges reserve Translation reserve Retained profits Total Non- controlling interests Total equity (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 55) (Note 38) (Note 55) (Note 55) As at 1 January 2023 9,075,589 19,200,000 (1,202,324) 70,482,059 7,790,909 21,024,438 84,554 42,643 666,033 37,923,300 165,087,201 2,761,508 167,848,709 Adjustments - - - - 419 1,696 - - - 5,786 7,901 - 7,901 As at 1 January 2023 9,075,589 19,200,000 (1,202,324) 70,482,059 7,791,328 21,026,134 84,554 42,643 666,033 37,929,086 165,095,102 2,761,508 167,856,610 Changes in equity for 2023 Profit for the year - - - - - - - - - 12,750,633 12,750,633 285,627 13,036,260 Other comprehensive income / (expense) for the year - - - - - - 56,617 (3,571) 220,883 - 273,929 42,070 315,999 Total comprehensive income / (expense) for the year - - - - - - 56,617 (3,571) 220,883 12,750,633 13,024,562 327,697 13,352,259 Issue of perpetual subordinated bonds - 6,500,000 - (4,087) - - - - - - 6,495,913 - 6,495,913 Acquisition of non-controlling interests - - - 2,161 - - - - - - 2,161 (7,534) (5,373) Equity-settled share-based payments - - 130,514 149,947 - - - - - - 280,461 35,029 315,490 Appropriation to surplus reserve - - - - 1,046,672 - - - - (1,046,672) - - - Appropriation to general reserve - - - - - 2,432,201 - - - (2,432,201) - - - Dividends declared to ordinary shareholders for the year - - - - - - - - - (4,063,223) (4,063,223) (51,810) (4,115,033) Dividends payable to perpetual subordinated bonds - - - - - - - - - (705,430) (705,430) - (705,430) Other comprehensive income that has been reclassified to retained profits - - - - - - 1,462 - - (1,462) - - - Others (926) - 7,637 (1,027,890) - - - - - - (1,021,179) 44,175 (977,004) As at 31 December 2023 9,074,663 25,700,000 (1,064,173) 69,602,190 8,838,000 23,458,335 142,633 39,072 886,916 42,430,731 179,108,367 3,109,065 182,217,432 The notes on pages 18 to 193 form part of these consolidated financial statements. ![]() HUATAI SECURITIES CO., LTD. - 15 - CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Year ended 31 December Note 2024 2023 Cash flows from operating activities: Profit before income tax 15,352,340 14,204,664 Adjustments for: Interest expenses 10,856,424 13,662,909 Share of profit of associates and joint ventures (2,353,953) (2,584,784) Depreciation and amortisation expenses 1,774,611 1,856,409 Impairment losses under expected credit loss model, net of reversal 246,269 (410,946) Expenses recognised from equity-settled share-based payment 96,548 184,975 Net gains arising from disposal of subsidiaries (6,335,547) - Gains on disposal of property and equipment (2,351) (2,019) Foreign exchange gains (197,191) (669,375) Dividend income and interest income from financial assets through other comprehensive income and debt instruments at amortised cost (1,943,376) (1,907,369) Net (gains) / losses arising from derecognition of financial assets at fair value through other comprehensive income (101,101) 80,389 Net gains arising from other investments - (10,173) Net gains arising from acquisition of investment in an associate - (239,728) Unrealised fair value changes in financial instruments at fair value through profit or loss 3,873,533 (7,493,050) Unrealised fair value changes in derivatives 891,069 6,788,150 Operating cash flows before movements in working capital 22,157,275 23,460,052 Decrease in refundable deposits 7,092,980 2,162,499 Increase in margin accounts receivable (20,449,188) (11,687,710) Decrease / (Increase) in accounts receivable, other receivables and prepayments 3,393,590 (2,407,309) (Increase) / decrease in financial assets held under resale agreements (3,547,957) 3,566,747 Decrease / (Increase) in financial instruments at fair value through profit or loss 94,168,963 (48,987,181) Decrease in restricted bank deposits 1,738,812 771,438 (Increase) / decrease in cash held on behalf of brokerage clients (33,623,986) 3,250,051 Increase / (decrease) in accounts payable to brokerage clients 39,894,426 (7,850,363) (Decrease) / increase in other payables and accruals (37,148,066) 5,855,964 ![]() HUATAI SECURITIES CO., LTD. - 16 - CONSOLIDATED STATEMENT OF CASH FLOWS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Year ended 31 December Note 2024 2023 Cash flows from operating activities: - continued Increase / (decrease) in employee benefits payable 396,416 (1,311,734) Decrease in financial assets sold under repurchase agreements (23,007,981) (61,849) (Decrease) / increase in placements from other financial institutions (9,415,067) 13,646,948 Cash generated from / (used in) operations 41,650,217 (19,592,447) Income taxes paid (1,551,541) (1,533,277) Interest paid (5,280,239) (7,349,829) Net cash generated from / (used in) operating activities 34,818,437 (28,475,553) Cash flows from investing activities Proceeds on disposal of property and equipment 15,917 50,428 Dividends received from associates 1,037,955 1,656,232 Dividend income and interest income from financial assets through other comprehensive income and debt instruments at amortised cost 2,146,830 1,854,296 Proceeds from disposal of financial assets at fair value through other comprehensive income 9,502,848 8,575,782 Proceeds from disposal of debt instruments at amortised cost 11,800,022 17,081,000 Purchase of property and equipment, investment properties, other intangible assets and other non- current assets (1,806,042) (1,676,304) Acquisition of interests in associates (285,868) (1,380,177) Divestments of associates, joint ventures and other investments 154,684 347,575 Proceeds on disposal of a subsidiary 10,796,229 - Purchase of debt instruments at amortised cost (9,547,511) (18,729,293) Purchase of financial assets at fair value through other comprehensive income (3,318,943) (14,044,006) Net cash generated from / (used in) investing activities 20,496,121 (6,264,467) ![]() HUATAI SECURITIES CO., LTD. - 17 - CONSOLIDATED STATEMENT OF CASH FLOWS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) Year ended 31 December Note 2024 2023 Cash flows from financing activities: Proceeds from issuance of short-term debt instruments 36,075,820 43,556,056 Proceeds from issuance of long-term bonds - 48,241,623 Proceeds from issuance of perpetual bonds 2,597,842 6,495,913 Proceeds from bank loans 3,355,750 11,377,260 Repayment of bank loans (12,019,460) (8,124,312) Repayment of debt securities issued (76,217,308) (67,858,553) Short-term bank loans interest paid (314,768) (545,002) Long-term bank loans interest paid (44,278) (53,487) Short-term debt instruments interest paid (1,582,413) (5,330,291) Long-term bonds interest paid (4,610,987) (4,362,411) Dividends paid (6,280,608) (4,769,463) Payment of lease liabilities (623,242) (662,201) Payment on repurchase and cancellation of shares (15,348) (7,637) Acquisition of partial interest of a subsidiary - (5,373) Cash received from Restricted Share Incentive Scheme 8,674 9,670 Net cash (used in) / generated from financing activities 42(b) (59,670,326) 17,961,792 Net decrease in cash and cash equivalents (4,355,768) (16,778,228) Cash and cash equivalents at the beginning of the year 59,830,329 75,549,060 Effect of foreign exchange rate changes 558,648 1,059,497 Total cash and cash equivalents at the end of the year 42(a) 56,033,209 59,830,329 The notes on pages 18 to 193 form part of these consolidated financial statements. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 18 - 1. General information Huatai Securities Co., Ltd. (the "Company"), formerly known as Jiangsu Securities Company, was approved by the People's Bank of China ("PBOC"), and registered with the Administration for Industry and Commerce of Jiangsu Province on 9 April 1991, with a registered capital of RMB10 million. The Company was renamed as Huatai Securities Limited Liability Company on 21 December 1999 and then renamed as Huatai Securities Co., Ltd. on 7 December 2007 as a result of the conversion into a joint stock limited liability company. The Company publicly issued RMB784,561,275 ordinary shares (the "A shares") in February 2010, and was listed on the Shanghai Stock Exchange on 26 February 2010. In June 2015, the Company issued RMB1,562,768,800 H shares, which were listed on the main board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"). Due to the issuance and listing of H Shares, the relevant state-owned shareholders transferred 156,276,880 state owned A Shares of the Company, representing 10% of the number of H Shares issued this time, to the National Council for Social Security Fund of the PRC in the form of H Shares. In August 2018, the Company completed the non-public issuance of 1,088,731,200 RMB- denominated ordinary shares (A Shares) by way of "Non-Public Issuance to Specific Investors". In June 2019, the Company issued 82,515,000 Global Deposits Receipts (the "GDRs"), representing 825,150,000 new A shares, and was listed on the London Stock Exchange plc (the "London Stock Exchange"). From September 2022 to December 2024, the Company completed the repurchase and cancellation of 49,347,719 restricted A shares, and the Company's registered capital has been reduced by RMB 49,347,719. As at 31 December 2024, the Company's registered capital was RMB9,027,302,281 and the Company has a total of 9,027,302,281 issued shares of RMB1 each. As at 31 December 2024, the Company has 27 branches and 248 securities business offices. Please refer to Note 24 for details of subsidiaries of the Company. The Company and its subsidiaries (the "Group") are principally engaged in securities business, securities underwriting and sponsorship, securities investment advisory, asset management, agency sale of financial products, intermediary introduction business for the futures companies, agency sale and custody of securities investment fund, mutual fund management, direct investment business, alternative investment business, futures brokerage business and other business activities as approved by the China Securities Regulatory Commission (the "CSRC"). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 19 - 2. Material accounting policy information (1) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS Accounting Standards") issued by the International Accounting Standards Board ("IASB"). In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules") and by the Hong Kong Companies Ordinance. A summary of the material accounting policy information adopted by the Group are set out below. (2) Application of amendments to IFRS Accounting Standards Amendments to IFRS Accounting Standards that are mandatorily effective for the current year In the current year, the Group has applied the following amendments to IFRS Accounting Standards issued by IASB for the first time, which are mandatorily effective for the Group's annual period beginning on 1 January 2024 for the preparation of the consolidated financial statements: | | | | --- | --- | | Amendments to IFRS 16 | Lease Liability in a Sale and Leaseback | | Amendments to IAS 1 | Classification of Liabilities as Current or Non-current | | Amendments to IAS 1 | Non-current Liabilities with Covenants | | Amendments to IAS 7 and IFRS 7 | Supplier Finance Arrangements | The application of the amendments to IFRS Accounting Standards in the current year has had no material impact on the Group's consolidated financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements. New and amendments to IFRS Accounting Standards in issue but not yet effective The Group has not early applied the following new and amendments to IFRS Accounting Standards that have been issued but are not yet effective: | | | | --- | --- | | Amendments to IFRS 9 and IFRS 7 | Amendments to the Classification and Measurement | | | of Financial Instruments 3 | | Amendments to IFRS 9 and IFRS 7 | Contracts Referencing Nature-dependent Electricity 3 | | Amendments to IFRS 10 and IAS 28 | Sale or Contribution of Assets between an Investor | | | and its Associate or Joint Venture 1 | | Amendments to IFRS Accounting | Annual Improvements to IFRS Accounting | | Standards | Standards - Volume 11 3 | | Amendments to IAS 21 | Lack of Exchangeability 2 | | IFRS 18 | Presentation and Disclosure in Financial Statements 4 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (2) Application of new and amendments to IFRS Accounting Standards - continued New and amendments to IFRS Accounting Standards in issue but not yet effective - continued - 20 - 1 Effective for annual periods beginning on or after a date to be determined. 2 Effective for annual periods beginning on or after 1 January 2025. 3 Effective for annual periods beginning on or after 1 January 2026. 4 Effective for annual periods beginning on or after 1 January 2027. IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 Presentation and Disclosure in Financial Statements , which sets out requirements on presentation and disclosures in financial statements, will replace IAS 1 Presentation of Financial Statements . This new IFRS Accounting Standard, while carrying forward many of the requirements in IAS 1, introduces new requirements to present specified categories and defined subtotals in the statement of profit or loss; provide disclosures on management-defined performance measures in the notes to the financial statements and improve aggregation and disaggregation of information to be disclosed in the financial statements. In addition, some IAS 1 paragraphs have been moved to IAS 8 and IFRS 7. Minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share are also made. IFRS 18, and amendments to other standards, will be effective for annual periods beginning on or after 1 January 2027, with early application permitted. The application of the new standard is expected to affect the presentation of the statement of profit or loss and disclosures in the future financial statements. The Group is in the process of assessing the detailed impact of IFRS 18 on the Group’s consolidated financial statements. Except as described above, the directors of the Company anticipate that the application of other amendments to IFRS Accounting Standards will have no material impact on the consolidated financial statements in the foreseeable future. (3) Basis of preparation of the consolidated financial statements The consolidated financial statements have been prepared on the historical cost basis except that the following assets and liabilities are measured at their fair value: financial derivatives, non- derivative financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income. The methods used to measure fair value are discussed further in Note 2(8). The consolidated financial statements are presented in Renminbi ("RMB"), which is the functional currency of the Company. All financial information presented in RMB has been rounded to the nearest thousand, except when otherwise indicated. The Group translates the consolidated financial statements of subsidiaries from their respective functional currencies into the Group's functional currency if the subsidiaries' functional currencies are not the same as that of the Group. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 21 - (4) Basis of consolidation The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Judgments made by management in the application of IFRS Accounting Standards that have significant effect on the consolidated financial statements and major sources of estimation uncertainty are discussed in Note 2(30). (i) Business combinations The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see Note 2(4)(ii)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a 'concentration test' that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. (ii) Subsidiaries and non-controlling interests Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances, transactions and cash flows and any unrealised gains arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealised losses resulting from intra- group transactions are eliminated in the same way as unrealised gains but only to the extent that there is no evidence of impairment. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (4) Basis of consolidation - continued (ii) Subsidiaries and non-controlling interests - continued - 22 - Non-controlling interests represent the equity in a subsidiary not attributable directly or indirectly to the Company, and in respect of which the Group has not agreed any additional terms with the holders of those interests which would result in the Group as a whole having a contractual obligation in respect of those interests that meet the definition of a financial liability. Non-controlling interests are presented in the consolidated statement of financial position within equity, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of profit or loss and the consolidated statement of profit or loss and other comprehensive income as an allocation of the total profit or loss and total comprehensive income for the reporting period between non-controlling interests and the shareholders of the Company. Changes in the Group's interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognised. When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognised at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see Note 2(8)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (see Note 2(4)(iii)). In the Company's statement of financial position, an investment in a subsidiary is stated at cost less impairment losses (see Note 2(15)), unless the investment is classified as held for sale (or included in a disposal group that is classified as held for sale). (iii) Associates and joint ventures An associate is an entity in which the Group or Company has significant influence, but not control or joint control, over its management, including participation in the financial and operating policy decisions. A joint venture is an arrangement whereby the Group or Company and other parties contractually agree to share control of the arrangement, and have rights to the net assets of the arrangement. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (4) Basis of consolidation - continued (iii) Associates and joint ventures - continued - 23 - Investment in an associate or a joint venture is accounted for in the consolidated financial statements under the equity method, unless it is classified as held for sale (or included in a disposal group that is classified as held for sale) or applied the exemption from the requirement to apply equity accounting method and measured the investment at fair value through profit or loss. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Group's share of the acquisition-date fair value of the investee's identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post acquisition change in the Group's share of the investee's net assets and any impairment loss relating to the investment (see Note 2(15)). Any acquisition-date excess over cost, the Group's share of the post-acquisition, post-tax results of the investees and any impairment losses for the year are recognised in profit or loss, whereas the Group's share of the post-acquisition post-tax items of the investees' other comprehensive income is recognised in other comprehensive income. When the Group's share of losses exceeds its interest in the associate or the joint venture, the Group's interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group's interest is the carrying amount of the investment under the equity method together with the Group's long-term interests that in substance form part of the Group's net investment in the associate or the joint venture. Unrealised profits and losses resulting from transactions between the Group and its associates and joint venture are eliminated to the extent of the Group's interest in the investee, except where unrealised losses provide evidence of an impairment of the asset transferred, in which case they are recognised immediately in profit or loss. If an investment in an associate becomes an investment in a joint venture or vice versa, retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method. When an investment in an associate or a joint venture is held by, or is held indirectly through, an entity that is a venture capital organisation, or a mutual fund and similar entities, such investment is measured at fair value through profit or loss in the Group's consolidated statement of financial position. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (4) Basis of consolidation - continued (iii) Associates and joint ventures - continued - 24 - In all other cases, when the Group ceases to have significant influence over an associate or joint control over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognised in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is recognised at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see Note 2(8)). In the Company's statement of financial position, investments in associates and joint venture of the Company are accounted for using the equity method, unless it is classified as held for sale (or included in a disposal group that is classified as held for sale) or applied the exemption from the requirement to apply equity accounting method and measured the investment at fair value through profit or loss. (5) Goodwill Goodwill represents the excess of: (i) the aggregate of the fair value of the consideration transferred, the amount of any non- controlling interest in the acquiree and the fair value of the Group's previously held equity interest in the acquiree; over (ii) the net fair value of the acquiree's identifiable assets and liabilities measured as at the acquisition date. When (ii) is greater than (i), then this excess is recognised immediately in profit or loss as a gain on a bargain purchase. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit ("CGU"), or groups of CGUs, that is expected to benefit from the synergies of the combination and is tested annually for impairment (see Note 2(15)). On disposal of a CGU during the year, any attributable amount of purchased goodwill is included in the calculation of the profit or loss on disposal. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 25 - (6) Foreign currency When the Group receives capital in foreign currencies from investors, the capital is translated to RMB at the spot exchange rate on the date of receipt. Other foreign currency transactions are, on initial recognition, translated to RMB at the spot exchange rates or the rates that approximate the spot exchange rates on the dates of the transactions. A spot exchange rate is an exchange rate quoted by the PBOC, the State Administrative of Foreign Exchange or a cross rate determined based on quoted exchange rates. A rate that approximates the spot exchange rate is a rate determined under a systematic and rational method, normally the average exchange rate of the current period. Monetary items denominated in foreign currencies are translated to RMB at the spot exchange rate at the end of the reporting period. The resulting exchange differences are recognised in profit or loss, except for exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the Group's interests in associates/joint ventures. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated to RMB using the foreign exchange rate at the transaction date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rate at the date the fair value is determined; the resulting exchange differences are recognised in profit or loss, except for the differences arising from the translation of equity securities investment designated as at fair value through other comprehensive income (FVOCI) (except on impairment, in which case foreign currency differences that have been recognised in other comprehensive income are reclassified to profit or loss), which are recognised as OCI in reserve. The assets and liabilities of foreign operation are translated to RMB at the spot exchange rate at the end of reporting period. The equity items, excluding "retained profits", are translated to RMB at the spot exchange rates at the transaction dates. The income and expenses of foreign operation are translated to RMB at the spot exchange rates or the rates that approximate the spot exchange rates at the transaction dates. The resulting translation differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity. Upon disposal of a foreign operation, the cumulative amount of the translation differences recognised in shareholders' equity which relates to that foreign operation is transferred to profit or loss in the period in which the disposal occurs. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 26 - (7) Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits, short term deposits, and short-term, highly liquid investments, which are readily convertible into known amounts of cash and are subject to insignificant risk of change in value. (8) Financial instruments (i) Recognition and initial measurement Financial instruments are recognised/derecognised on the date the Group commits to purchase/sell the investment. Financial instruments are initially stated at fair value plus directly attributable transaction costs, except for those investments measured at fair value through profit or loss (FVTPL) for which transaction costs are recognised directly in profit or loss. For an explanation of how the Group determines fair value of financial instruments, see Note 2(8)(iv). Financial instruments are subsequently accounted for as follows, depending on their classification. (ii) Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: - it is held within a business model whose objective is to hold assets to collect contractual cash flows; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (ii) Classification and subsequent measurement - continued - 27 - A debt instruments is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: - it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets - Business model assessment The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group's continuing recognition of the assets. Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (ii) Classification and subsequent measurement - continued - 28 - Financial assets - Assessment whether contractual cash flows are solely payments of principal and interest For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers: - contingent events that would change the amount or timing of cash flows; - terms that may adjust the contractual coupon rate, including variable-rate features; - prepayment and extension features; and - terms that limit the Group's claim to cash flows from specified assets (e.g. non-recourse features). A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual paramount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (ii) Classification and subsequent measurement - continued - 29 - Financial assets - Subsequent measurement and gains and losses | | | | --- | --- | | Financial assets at | These assets are subsequently measured at fair value. Net gains and | | FVTPL | losses, including any interest or dividend income, are recognised in | | | profit or loss. | | Financial assets at | These assets are subsequently measured at amortised cost using the | | amortised cost | effective interest method. The amortised cost is reduced by impairment | | | losses. Interest income, foreign exchange gains and losses and | | | impairment are recognised in profit or loss. Any gain or loss on | | | derecognition is recognised in profit or loss. | | Debt instruments at | These assets are subsequently measured at fair value. Interest income | | FVOCI | calculated using the effective interest method, foreign exchange gains | | | and losses and impairment are recognised in profit or loss. Other net | | | gains and losses are recognised in OCI. On derecognition, gains and | | | losses accumulated in OCI are reclassified to profit or loss. | | Equity investments | These assets are subsequently measured at fair value. Dividends are | | at FVOCI | recognised as income in profit or loss unless the dividend clearly | | | represents a recovery of part of the cost of the investment. Other net | | | gains and losses are recognised in OCI and are never reclassified to | | | profit or loss. | Financial liabilities - Classification, subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. The fair value change of a financial liability designated at FVTPL that is attributable to changes of that financial liability's credit risk is to be recognised in OCI (without reclassification to profit or loss). Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued - 30 - (iii) Impairment The Group recognises loss allowances for Expected Credit Losses (ECLs) on: - financial assets measured at amortised cost; - debt instruments measured at FVOCI; - financial guarantee contracts ； - contract assets ； and - lease receivables. Debt instruments at fair value, FVTPL and equity securities designated at FVOCI (non- recycling), are not subject to the ECL assessment. Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. In measuring ECLs, the Group takes into account reasonable and supportable information that is available without undue cost or effort. This includes information about past events, current conditions and forecasts of future economic conditions. ECLs are measured on either of the following bases: - 12-month ECLs: these are losses that are expected to result from possible default events within the 12 months after the reporting date; and - lifetime ECLs: these are losses that are expected to result from all possible default events over the expected lives of the items to which the ECL model applies. Loss allowances for accounts receivables and contract assets are always measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (iii) Impairment - continued Measurement of ECLs - continued - 31 - For all other financial instruments, the Group recognises a loss allowance equal to 12-month ECLs unless there has been a significant increase in credit risk of the financial instrument since initial recognition, in which case the loss allowance is measured at an amount equal to lifetime ECLs. The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs: - debt securities that are determined to have low credit risk at the reporting date; and - other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition. Significant increases in credit risk When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: - failure to make payments of principal or interest on their contractually due dates; - an actual or expected significant deterioration in a financial instrument's external or internal credit rating (if available); - an actual or expected significant deterioration in the operating results of the debtor; and - existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor's ability to meet its obligation to the Group. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (iii) Impairment - continued Significant increases in credit risk - continued - 32 - Despite the aforegoing, the Group assumes that the credit risk on a debt instrument has not increased significantly since initial recognition if the debt instrument is determined to have low credit risk at the reporting date. A debt instrument is determined to have low credit risk if (i) it has a low risk of default, (ii) the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and (iii) adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings. Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). Credit-impaired financial assets At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data: - significant financial difficulty of the borrower or issuer; - a breach of contract such as a default; - the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise; - it is probable that the borrower will enter bankruptcy or other financial reorganisations; or - the disappearance of an active market for a security because of financial difficulties. - the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (iii) Impairment - continued - 33 - Presentation of allowance for ECL in the consolidated statement of financial position Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI. Write-off The gross carrying amount of a financial asset is written-off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group expects no significant recovery from the amount written-off. However, financial assets that are written- off could still be subject to enforcement activities in order to comply with the Group's procedures for recovery of amounts due. Subsequent recoveries of an asset that was previously written-off are recognised as a reversal of impairment in profit or loss in the period in which the recovery occurs. (iv) Fair value measurement If there is an active market for a financial asset or financial liability, the quoted market price without adjusting for transaction costs that may be incurred upon future disposal or settlement is used to establish the fair value of the financial asset or financial liability. Quoted prices from an active market are prices that are readily and regularly available from an exchange, dealer, broker, industry group or pricing service agency, and represent actual and regularly occurring market transactions on an arm's length basis. If no active market exists for a financial instrument, a valuation technique is used to establish the fair value. Valuation techniques include using recent arm's length market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. Where discounted cash flow technique is used, future cash flows are estimated based on management's best estimates and the discount rate used is the prevailing market rate applicable for instrument with similar terms and conditions at the end of the reporting period. Where other pricing models are used, inputs are based on market data at the end of the reporting period. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (iv) Fair value measurement - continued - 34 - In estimating the fair value of a financial asset and financial liability, the Group considers all factors including, but not limited to, risk-free interest rate, credit risk, foreign exchange rate and market volatility, that are likely to affect the fair value of the financial asset and financial liability. The Group obtains market data from the same market where the financial instrument was originated or purchased. (v) Derecognition of financial assets and financial liabilities Financial assets (or a part of a financial asset or group of financial assets) are derecognised when the financial assets meet one of the following conditions: - the contractual rights to the cash flows from the financial asset expire; or - the Group transfers substantially all the risks and rewards of ownership of the financial assets or where substantially all the risks and rewards of ownership of a financial asset are neither retained nor transferred, the control over that asset is relinquished. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but retains control, the Group continues to recognise the financial asset and relevant liability to the extent of its continuing involvement in the financial asset. The financial liability (or part of it) is derecognised only when the underlying present obligation (or part of it) specified in the contracts is discharged, cancelled or expired. An agreement between the Group and an existing lender to replace the original financial liability with a new financial liability with substantially different terms, or a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and recognition of a new financial liability. The difference between the carrying amount of the derecognised financial liability and the consideration paid is recognised in profit or loss. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued - 35 - (vi) Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position when the Group has a legally enforceable right to set off the recognised amounts and the transactions are intended to be settled on a net basis, or by realising the asset and settling the liability simultaneously. (vii) Equity instruments An equity instrument is a contract that proves the ownership interest of the residual assets after deducting all liabilities of the Group. Considerations received from issuance of equity instruments net of transaction costs are recognised in equity. Considerations and transaction costs paid by the Group for repurchasing its own equity instruments are deducted from equity. (viii) Perpetual bonds At initial recognition, the Group classifies the perpetual bonds issued as financial liabilities or equity instruments based on their contractual terms and their economic substance after considering the definition of financial liabilities and equity instruments. Perpetual bonds issued that should be classified as equity instruments are recognised in equity based on the actual amount received. Any distribution of dividends or interests during the instruments' duration is treated as profit appropriation. When the perpetual bonds are redeemed according to the contractual terms, the redemption price is charged to equity. (ix) Derivative financial instruments Derivative financial instruments are recognised at fair value. At the end of each reporting period the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss, except where the derivatives qualify for cash flow hedge accounting or hedges of net investment in a foreign operation, in which case recognition of any resultant gain or loss depends on the nature of the item being hedged. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not due to be realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued - 36 - (x) Hedge accounting At the inception of a hedging relationship, the Group formally designates the hedge instruments and the hedged items, and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting the exposure to changes in the hedged item's fair value or cash flows attributable to the hedged risk. Such hedges are expected to meet the hedge effectiveness in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to analyse the sources of hedge ineffectiveness which are expected to affect the hedging relationship in remaining hedging period. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio, but the risk management objective for that designated hedging relationship remains the same, the Group would rebalance the hedging relationship. The Group designates such hedged items as debt securities issued with floating interest that expose the Group to the risk of variability of its cash flows. Certain derivative transactions, while providing effective economic hedges under the Group's risk management positions, do not qualify for hedge accounting and are therefore treated as derivatives held for trading with fair value gains or losses recognised in profit or loss. Hedges which meet the strict criteria for hedge accounting are accounted for in accordance with the Group's accounting policy as set out below. Fair value hedges Fair value hedges are hedges of the Group's exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment, or an identified portion of such an asset, liability or unrecognised firm commitment, that is attributable to a particular risk and could affect the profit or loss or other comprehensive income. Among them, the circumstances affecting other comprehensive income are limited to the hedging for the risk exposure from fair value change of non-trading equity investment designated as at FVOCI. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged, the derivative is remeasured at fair value and the gains and losses from both are taken to pro fit or loss or other comprehensive income. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (x) Hedge accounting - continued Fair value hedges - continued - 37 - For hedged items recorded at amortised cost, the difference between the carrying value of the hedged item and the face value is amortised over the remaining term of the original hedge using the effective interest rate method. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. The changes in the fair value of the hedging instrument are also recognised in profit or loss. The Group discontinues fair value hedge accounting when the hedging relationship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has been sold, terminated or exercised. If the hedged items are derecognised, the unamortised fair value is recorded in profit or loss. Cash flow hedges Cash flow hedges are hedges of the Group's exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability, a highly probable forecast transaction or a component of any such item, and could affe ct profit or loss. For designated and qualifying cash flow hedges, the effective portion of the gain or loss on the hedging instrument is initially recognised directly in other comprehensive income. The ineffective portion of the gain or loss on the hedging instrument is recognised immediately in profit or loss. When the hedged cash flow affects profit or loss, the gain or loss on the hedging instrument recognised directly in other comprehensive income is recycled in the corresponding income or expense line of the statement of profit or loss. When the hedging relatio nship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has been sold, terminated or exercised, any cumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income until the hedged forecast transaction ultimately occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in other comprehensive inco me is immediately transferred to profit or loss. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (8) Financial instruments - continued (x) Hedge accounting - continued - 38 - Net investment hedges Net investment hedge is a hedge of the currency risk of a net investment in a foreign institution operation. Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised directly in other comprehensive income; the gain or loss relating to the ineffective portion is recognised in profit or loss immediately. Gains and losses accumulated in other comprehensive income are included in profit or loss when the foreign operation is disposed of as part of the gain or loss on the disposal. (9) Margin financing and securities lending Margin financing and securities lending refer to the lending of funds by the Group to customers for purchase of securities, or lending of securities by the Group to customers for securities selling, for which the customers provide the Group with collateral. The classification, subsequent measurement and impairment of margin financing receivables is based on policies in Note 2(8). Securities lent are not derecognised when the risk and rewards are not transferred, and interest income from margin financing receivables and securities lent is recognised accordingly. The collateral is not recognised on the statement of financial position, the transfer of the collateral from counterparties is only reflected on the statement of financial position if the risks and rewards of ownership are also transferred. Securities trading on behalf of margin financing or securities lending customers are accounted for as securities brokerage business. (10) Financial assets held under resale and sold under repurchase agreements Financial assets held under resale agreements are transactions where the Group acquires financial assets which will be resold at a predetermined price at a future date under resale agreements. Financial assets sold under repurchase agreements are transactions where the Group sells financial assets which will be repurchased at a predetermined price at a future date under repurchase agreements. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (10) Financial assets held under resale and sold under repurchase agreements - continued - 39 - The cash advanced or received is recognised as amounts held under resale or sold under repurchase agreements in the consolidated statement of financial position. Assets held under resale agreements are recorded in memorandum accounts as off-balance sheet items. Assets sold under repurchase agreements continue to be recognised in the consolidated statement of financial position. The difference between the purchase and resale consideration, and that between the sale and repurchase consideration, is amortised over the period of the respective transaction using the effective interest method and is included in interest income and interest expenses, respectively. (11) Investments in subsidiaries In the Group's consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles described in Note 2(4). In the Company's statement of financial position, investments in subsidiaries are accounted for using the cost method. The investment is stated at cost less impairment loss (Note 2(15)) in the statements of financial position. Except for declared but not yet distributed cash dividends or profits distribution that have been included in the price or consideration paid in obtaining the investments, the Group recognises its share of the cash dividends or profit distribution declared by the investees as investment income. (12) Property and equipment and construction in progress (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses (see Note 2(15)). Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the following: - the cost of materials and direct labour; - any other costs directly attributable to bringing the assets to a working condition for their intended use; - when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and - capitalised borrowing costs. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (12) Property and equipment and construction in progress - continued (i) Recognition and measurement - continued - 40 - Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. Costs of construction in progress are determined based on the actual expenditures incurred which include all necessary expenditures incurred during the construction period, borrowing costs eligible for capitalisation and other costs incurred to bring the asset to its intended use. Items classified as construction in progress are transferred to property and equipment when such assets are ready for their intended use. (ii) Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance are expensed as incurred. (iii) Depreciation Items of property and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Depreciation is calculated to write-off the cost of items of property and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (12) Property and equipment and construction in progress - continued (iii) Depreciation - continued - 41 - The estimated useful lives for the current and comparative years of significant items of property and equipment are as follows: | | | | | | --- | --- | --- | --- | | | Estimated | Estimated | Depreciation | | Types of assets | useful lives | residual values | rates | | Buildings | 30 - 35 years | 3% | 2.77% - 3.23% | | Motor vehicles | 5 - 8 years | 3% | 12.13% - 19.40% | | Electronic equipment | 5 years | 3% | 19.40% | | Furniture and fixtures | 5 years | 3% | 19.40% | No depreciation is provided in respect of construction in progress. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (13) Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is accounted for using the cost model and stated in the financial statements at cost less accumulated depreciation, and impairment losses (see Note 2(15)). The cost of investment property, less its estimated residual value and accumulated impairment losses, is depreciated using the straight-line method over its estimated useful life, unless the investment property is classified as held for sale. | | | | | | --- | --- | --- | --- | | | Estimated | Estimated | Depreciation | | | useful lives | residual values | rates | | Investment property | 30 - 35 years | 3% | 2.77% - 3.23% | Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 42 - (14) Land-use rights and other intangible assets Intangible assets are stated at cost less accumulated amortisation (where the estimated useful life is finite) and impairment loss (see Note 2(15)). For an intangible asset with finite useful life, its cost less impairment loss is amortised on the straight-line method over its estimated useful life. The respective amortisation periods for intangible assets are as follows: | | | | --- | --- | | Types of assets | Estimated useful lives | | Existing relationships with broker-dealers | Indefinite | | Enterprise distribution channel customer relationships | Indefinite | | Trading seat fee | Indefinite | | Land-use rights | 40 - 50 years | | Trade names | 11 - 20 years | | Software and others | 2 - 14 years | An intangible asset is regarded as having an indefinite useful life and is not amortised when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group. (15) Impairment of non-financial assets The carrying amounts of the following assets are reviewed at each reporting date to determine whether there is any indication of impairment: - property and equipment - construction in progress - investment property - land-use rights and other intangible assets - equity investment in subsidiaries, associates and joint ventures - goodwill - leasehold improvements and long-term deferred expenses If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and indefinite-lived intangible assets are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (15) Impairment of non-financial assets - continued - 43 - The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (16) Non-current assets held for sale Non-current assets (and disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in the relevant subsidiary after the sale. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (16) Non-current assets held for sale - continued - 44 - When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified as held for sale from the time when the investment (or a portion of the investment) is classified as held for sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell, except for financial assets within the scope of IFRS 9 which continue to be measured in accordance with the accounting policies as set out in respective sections. (17) Contract assets and contract liabilities A contract asset represents the Group's right to consideration in exchange for goods or services that the Group has transferred to a customer that is not yet unconditional. Contract assets are assessed for ECL in accordance with the policy set out in Note 2(8)(iii) and are reclassified to receivables when the right to the consideration has become unconditional. A contract liability is recognised when the customer pays consideration before the Group recognises the related revenue. A contract liability would also be recognised if the Group has an unconditional right to receive consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised. For a single contract with the customer, either a net contract asset or a net contract liability is presented. For multiple contracts, contract assets and contract liabilities of unrelated contracts are not presented on a net basis. When the contract includes a significant financing component, the contract balance includes interest accrued under the effective interest method. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 45 - (18) Employee benefits (i) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (ii) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees. (iii) Other long-term employee benefits The Group's net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on corporate bonds, which have a credit rating of at least AA from rating agency, that have maturity dates approximating the terms of the Group's obligations and that are denominated in the currency in which the benefits are expected to be paid. The calculation is performed using the projected unit credit method. Any actuarial gains and losses are recognised in profit or loss in the period in which they arise. (iv) Termination benefits Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 46 - (19) Share-based payments (i) Accounting treatment of cash-settled share-based payments Where the Group receives services from employees by incurring a liability to deliver cash or other assets for amounts that are determined based on the price of shares or other equity instruments, the service received from employees is measured at the fair value of the liability incurred. If a cash-settled share-based payment do not vest until the completion of services for a period, or until the achievement of a specified performance condition, the Group recognises costs or expenses as services are received, with a corresponding increase in liability, at an amount equal to the fair value of the liability based on the best estimate of the outcome of vesting. Until the liability is settled, the Group will remeasure the fair value of the liability at each balance sheet date and at the date of settlement, with changes recognised in profit or loss for the current period. When the Group receives services and has the obligation to settle the transaction, but the relevant equity instruments are issued by the Company's ultimate parent or its subsidiaries outside the Group, the Group classifies the transaction as cash-settled. (ii) Accounting treatment of equity-settled share-based payments Where the Group uses shares or other equity instruments as consideration for services received from the employees, the payment is measured at the fair value of the equity instruments granted to the employees at the grant date. If the equity instruments granted do not vest until the completion of services for a period, or until the achievement of a specified performance condition, the Group recognises an amount at each balance sheet date during the vesting period based on the best estimate of the number of equity instruments expected to vest according to the newly obtained subsequent information of the changes of the number of the employees expected to vest the equity instruments. The Group measures the services received at the grant-date fair value of the equity instruments and recognises the costs or expenses as the services are received, with a corresponding increase in capital reserve. When the Group receives services, but the Group has no obligation to settle the transaction because the relevant equity instruments are issued by the Company's ultimate parent or its subsidiaries outside the Group, the Group also classifies the transaction as equity-settled. (20) Income tax Income tax expense comprises current and deferred income tax expense. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (20) Income tax - continued - 47 - (i) Current tax Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends. (ii) Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: - temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss and at the time of the transaction does not give rise to equal taxable and deductible temporary differences; - temporary differences related to investments in subsidiaries, associates and jointly controlled entities to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and - taxable temporary differences arising on the initial recognition of goodwill. The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. For investment property that is measured at fair value, the presumption that the carrying amount of the investment property will be recovered through sale has not been rebutted. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (20) Income tax - continued (ii) Deferred tax - continued - 48 - Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. For the purposes of measuring deferred tax for leasing transactions in which the Group recognises the right-of-use assets and the related lease liabilities, the Group first determines whether the tax deductions are attributable to the right-of-use assets or the lease liabilities. For leasing transactions in which the tax deductions are attributable to the lease liabilities, the Group applies IAS 12 requirements to the lease liabilities and the related assets separately. The Group recognises a deferred tax asset related to lease liabilities to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised and a deferred tax liability for all taxable temporary differences. (iii) Tax exposures In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. (21) Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (21) Leases - continued - 49 - (i) As a lessee At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand‑alone prices. However, for the leases of property the Group has elected not to separate non‑lease components and account for the lease and non‑lease components as a single lease component. The Group recognises a right‑of‑use asset and a lease liability at the lease commencement date. The right‑of‑use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right‑of‑use asset is subsequently depreciated using the straight‑line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right‑of‑use asset reflects that the Group will exercise a purchase option. In that case the right‑of‑use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right‑of‑use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (21) Leases - continued (i) As a lessee - continued - 50 - Lease payments included in the measurement of the lease liability comprise the following: - fixed payments, including in‑substance fixed payments; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - amounts expected to be payable under a residual value guarantee; and - the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in‑substance fixed lease payment. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right‑of‑use asset, or is recorded in profit or loss if the carrying amount of the right‑of‑use asset has been reduced to zero. The Group presents right‑of‑use assets that do not meet the definition of investment property in 'property and equipment' and lease liabilities in 'other payables and accruals' in the statement of financial position. Short-term leases and leases of low-value assets The Group has elected not to recognise right‑of‑use assets and lease liabilities for leases of low‑value assets and short‑term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight‑ line basis over the lease term. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (21) Leases - continued - 51 - (ii) As a lessor At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right- of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the contract. The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease (see Note 2(8)). The Group further regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease. The Group recognises lease payments received under operating leases as income on a straight- line basis over the lease term as part of 'other income and gains'. (22) Provisions and contingent liabilities A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (22) Provisions and contingent liabilities - continued - 52 - Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. (23) Fiduciary activities The Group acts in a fiduciary activity as a manager, a custodian, or an agent for customers. Assets held by the Group and the related undertakings to return such assets to customers are recorded as off-balance sheet items as the risks and rewards of the assets reside with customers. (24) Revenue recognition Revenue is recognised when control over a service is transferred to the customer at the amount of promised consideration to which the Group is expected to be entitled, excluding those amounts collected on behalf of third parties. Revenue excludes value added tax or other sales taxes and is after deduction of any trade discounts. Where the contract contains a variable consideration, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the promised services to a customer and includes in the transaction price some or all of the variable consideration estimated, such that revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. Where the contract contains a financing component which provides a significant financing benefit to the customer for more than 12 months, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would be reflected in a separate financing transaction with the customer, and interest income is accrued separately under the effective interest method. Where the contract contains a financing component which provides a significant financing benefit to the Group, revenue recognised under that contract includes the interest expense accreted on the contract liability under the effective interest method. The Group takes advantage of the practical expedient of IFRS 15 and does not adjust the consideration for any effects of a significant financing component if the period of financing is 12 months or less. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (24) Revenue recognition - continued - 53 - Further details of the Group's revenue and other income recognition policies are as follows: (i) Commission income from brokerage business Brokerage commission income is recognised on a trade date basis when the relevant transactions are executed. Handling and settlement fee income arising from brokerage business is recognised when the related services are rendered. (ii) Underwriting and sponsor fees Underwriting fee is recognised when the Group has fulfilled its obligations under the underwriting contract. Depending on contract terms, sponsor fees are recognised progressively over time using a method that depicts the Group's performance, or at a point in time when the service is completed. (iii) Advisory fees Depending on the nature of the advisory services and the contract terms, advisory fees are recognised progressively over time using a method that depicts the Group's performance, or at a point in time when the advisory service is completed. (iv) Asset management fees Asset management fees include periodic management fees calculated based on assets under management and performance-based fees. The fees are recognised progressively over time using a method that depicts the Group's performance, to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. (v) Other income Other income is recognised on an accrual basis. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 54 - (25) Expenses recognition (i) Commission expenses Commission expenses relate mainly to transactions, which are recognised as expenses when the services are received. (ii) Interest expenses Interest expenses are recognised based on the principal outstanding and at the effective interest rate applicable. (iii) Other expenses Other expenses are recognised on an accrual basis. (26) Dividend distribution Dividends or profit distributions proposed in the profit appropriation plan, which will be authorised and declared after the end of the reporting period, are not recognised as a liability at the end of the reporting period but disclosed in the notes to the financial statements separately. (27) Government grants Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Government grants related to income that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which they become receivable. Such grants are presented under "other income and gains". ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 55 - (28) Related parties (i) A person, or a close member of that person's family, is related to the Group if that person: (1) has control or joint control over the Group; (2) has significant influence over the Group; or (3) is a member of the key management personnel of the Group or the Group's parent. (ii) An entity is related to the Group if any of the following conditions applies: (1) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (2) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (3) Both entities are joint ventures of the same third party. (4) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (5) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. (6) The entity is controlled or jointly controlled by a person identified in (i). (7) A person identified in (i)(1) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (8) The entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the Group's parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued - 56 - (29) Segment reporting Reportable segments are identified based on operating segments which are determined based on the structure of the Group's internal organisation, management requirements and internal reporting system. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose financial performance are regularly reviewed by the Group's management to make decisions about resource to be allocated to the segment and assess its performance, and for which financial information regarding financial position, financial performance and cash flows is available. Two or more operating segments may be aggregated into a single operating segment if the segments have same or similar economic characteristics and are similar in respect of the nature of each products and service, the nature of production processes, the type or class of customers for the products and services, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Inter-segment revenues are measured on the basis of actual transaction price for such transactions for segment reporting, and segment accounting policies are consistent with those for the consolidated financial statements. (30) Significant accounting estimates and judgements The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these judgments and estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. (i) Fair value of financial instruments If the market for a financial instrument is not active, the Group determines the fair value by using valuation technique. Valuation technique makes maximum use of observable market input. However, where observable market inputs are not available, management makes estimates on such unobservable market inputs. (ii) Measurement of ECL The following significant judgements are required in applying the accounting requirements for measuring the ECL. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (30) Significant accounting estimates and judgements - continued (ii) Measurement of ECL - continued - 57 - Significant increase of credit risk As explained in Note 2(8)(iii), ECL are measured as an allowance equal to 12-month ECL for Stage 1 assets, or lifetime ECL assets for Stage 2 or Stage 3 assets. An asset moves to Stage 2 when its credit risk has increased significantly since initial recognition. In assessing whether the credit risk of an asset has significantly increased, the Group takes into account qualitative and quantitative reasonable and supportable forward looking information. Establishing groups of assets with similar credit risk characteristics When ECLs are measured on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics. The Group monitors the appropriateness of the credit risk characteristics on an ongoing basis to assess whether they continue to be similar. This is required in order to ensure that should credit risk characteristics change there is appropriate re- segmentation of the assets. This may result in new portfolios being created or assets moving to an existing portfolio that better reflects the similar credit risk characteristics of that group of assets. Assets move from 12-month to lifetime ECLs when there is a significant increase in credit risk, but it can also occur within portfolios that continue to be measured on the same basis of 12- month or lifetime ECLs but the amount of ECL changes because the credit risk of the portfolios differ. Models and assumptions used The Group uses various models and assumptions in estimating ECL. Judgement is applied in identifying the most appropriate model for each type of asset, as well as for determining the assumptions used in these models, including assumptions that relate to key drivers of credit risk. Forward-looking information When measuring ECL the Group uses reasonable and supportable forward looking information, which is based on assumptions for the future movements of different economic drivers and how these drivers will affect each other. Probability of default (PD) PD constitutes a key input in measuring ECL. PD is an estimate of the likelihood of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (30) Significant accounting estimates and judgements - continued (ii) Measurement of ECL - continued - 58 - Loss given default (LGD) LGD is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit enhancements. Loss rate (LR) LR represents the Group's expectation of the likelihood and extent of loss on exposure based on the relevant loan to collateral ratio. The Group uses historical loss rates based on publicly available information and assesses their appropriateness. (iii) Impairment of non-financial assets At the end of the reporting period, the carrying amount of non-financial assets are reviewed to determine whether there is any indication that these assets have suffered an impairment loss. If any such indication exists, an impairment loss is provided. Goodwill and indefinite-lived intangible assets are tested annually for impairment. Since the market price of an asset (the asset group) cannot be obtained reliably, the fair value of the asset cannot be estimated reliably. In assessing the present value of future cash flows, significant judgements are exercised over the future cash flows and discounting rates, based on all relevant materials which can be obtained together with reasonable and supportable assumptions. (iv) Income taxes Determining income tax provisions requires the Group to estimate the future tax treatment of certain transactions. The Group evaluates tax implications of transactions in accordance with prevailing tax regulations and makes tax provisions accordingly. In addition, deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. This requires significant judgement on the tax treatments of certain transactions and also significant assessment on the probability that adequate future taxable profits will be available for the deferred tax assets to be recovered. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 2. Material accounting policy information - continued (30) Significant accounting estimates and judgements - continued - 59 - (v) Determination scope of consolidation All facts and circumstances must be taken into consideration in the assessment of whether the Group, controls the investee. The principle of control includes three elements: (i) power over the investee; (ii) exposure, or rights, to variable returns from involvement with the investee; and (iii) the ability to use power over the investee to affect the amount of investors' returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The Group held interests as investor and/or acted as investment manager in various structured entities including asset management schemes, investment funds and partnerships. The Group considered its power, arising from the rights entitled directly or indirectly, over the structured entities, and assessed whether the combination of investments it held together with its remuneration created exposure to variability of returns from the structured entities that are of such significance that it indicated the Group controlled the structured entities and should consolidated these structured entities. 3. Taxation The Group's main applicable taxes and tax rates are as follows: | | | | | --- | --- | --- | | Tax type | Tax basis | Tax rate | | Value-added tax (VAT) | Output VAT is calculated on product sales | 3% - 13% | | | and taxable services revenue. The basis for | | | | VAT payable is to deduct input VAT from | | | | the output VAT for the period. | | | City maintenance and | Based on VAT payable | 1% - 7% | | construction tax | | | | Education surcharge | Based on VAT payable | 2% - 3% | | Local Education surcharge | Based on VAT payable | 1% - 2% | | Income tax | Based on taxable profits | 25% (i) | (i) The income tax rate applicable to the Company and its subsidiaries in the Mainland China is 25% (2023: 25%). The income tax rate applicable to subsidiaries in Hong Kong is 16.5% (2023: 16.5%). The federal income tax of subsidiaries in the United States were provided at the rate of 21% (2023: 21%). Taxes of other overseas subsidiaries are charged at the relevant local rates. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 60 - 4. Fee and commission income | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Income from securities brokerage and advisory business | 8,549,351 | 7,870,599 | | Income from asset management business | 4,810,453 | 6,422,832 | | Income from underwriting and sponsorship business | 1,891,474 | 2,980,061 | | Income from futures brokerage business | 1,561,096 | 1,188,621 | | Income from financial advisory business | 252,241 | 238,015 | | Other commission income | 194,721 | 240,854 | | Total | 17,259,336 | 18,940,982 | 5. Interest income | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Interest income from margin financing and securities | | | | lending | 6,773,051 | 7,839,468 | | Interest income from financial institutions | 4,417,006 | 4,325,319 | | Interest income from debt instruments at amortised cost | 1,455,189 | 1,445,973 | | Interest income from securities-backed lendings | 146,181 | 273,945 | | Interest income from debt instruments at fair value through | | | | other comprehensive income | 479,387 | 461,396 | | Interest income from other financial assets held under resale | | | | agreements | 274,953 | 247,544 | | Others | 15,227 | 21,587 | | Total | 13,560,994 | 14,615,232 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 61 - 6. Net investment gains | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Dividend income and interest income from financial | | | | instruments at fair value through profit or loss | 8,976,586 | 8,068,148 | | Net realised gains from disposal of subsidiaries | 6,335,547 | - | | Net realised gains/(losses) from disposal of derivative | | | | financial instruments | 2,249,924 | (8,941,901) | | Net realised gains from disposal of financial instruments at | | | | fair value through profit or loss | 1,690,391 | 11,639,856 | | Net realised gains/(losses) from disposal of debt instruments | | | | at fair value through other comprehensive income | 101,101 | (80,389) | | Dividend income from financial instruments at fair value | | | | through other comprehensive income | 8,800 | - | | Unrealised fair value changes of derivative financial | | | | instruments | (988,058) | (6,518,537) | | Unrealised fair value changes of financial instruments at fair | | | | value through profit or loss | (3,873,533) | 7,493,050 | | Other investment gains | - | 10,173 | | Total | 14,500,758 | 11,670,400 | 7. Other income and gains | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Income from commodity sales | 7,860,243 | 4,890,072 | | Government grants (i) | 193,172 | 306,922 | | Rental income | 23,335 | 30,709 | | Gains on disposal of property and equipment | 3,930 | 1,525 | | Gain on acquiring interest in an associate | - | 239,728 | | Foreign exchange gain | 750,297 | 1,322,894 | | Others | 133,418 | 241,957 | | Total | 8,964,395 | 7,033,807 | (i) The government grants were received unconditionally by the Company and its subsidiaries from the local government where they reside. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 62 - 8. Fee and commission expenses | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Expenses for securities brokerage and advisory business | 2,512,392 | 2,366,556 | | Expenses for futures brokerage business | 1,084,258 | 619,462 | | Expenses for asset management business | 664,112 | 1,158,376 | | Expenses for underwriting and sponsorship business | 46,564 | 180,253 | | Expenses for financial advisory business | 330 | 943 | | Other commission expenses | 3,321 | 2,700 | | Total | 4,310,977 | 4,328,290 | 9. Interest expenses | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Interest expenses on long-term bonds | 4,752,586 | 4,876,439 | | Interest expenses on financial assets sold under repurchase | | | | agreements | 3,411,098 | 3,954,529 | | Interest expenses on placements from banks and other | | | | financial institutions | 777,410 | 1,935,432 | | Interest expenses on short-term debt instruments issued | 525,412 | 704,782 | | Interest expenses of accounts payable to brokerage clients | 830,502 | 1,187,166 | | Interest expenses on short-term bank loans | 220,685 | 597,601 | | Interest expenses on lease liabilities | 50,632 | 63,271 | | Interest expenses on long-term bank loans | 34,669 | 59,122 | | Others | 253,430 | 284,567 | | Total | 10,856,424 | 13,662,909 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 63 - 10. Staff costs | | | | | | --- | --- | --- | --- | | | | Year ended 31 December | | | | Note | 2024 | 2023 | | Salaries, bonuses and allowances | | 8,025,434 | 7,245,418 | | Contribution to pension schemes | | 899,117 | 942,195 | | Share-based payment expense | 63 | 101,204 | 187,494 | | Other social welfare | | 1,048,866 | 996,735 | | Total | | 10,074,621 | 9,371,842 | The domestic employees of the Group in the PRC participate in social welfare plans, including pension, medical, housing, and other welfare benefits, organised and administered by the governmental authorities. According to the relevant regulations, the premiums and welfare benefits contributions that should be borne by the Group are calculated on a regular basis and paid to the labour and social welfare authorities. The contributions to the social security plans are expensed as incurred. The Group provides its full-time employees in Mainland China and certain countries or jurisdictions outside Mainland China with relevant pension plans as required by the governments or by local labour laws, including the basic pension plan in Mainland China, the Mandatory Provident Funds in Hong Kong and other statutory plans in certain countries outside Mainland China. The Group did not have any forfeited contributions under these pension plans. The Group also provides an enterprise annuity plan to employees in Mainland China. According to the plan, when an employee resigns, part of the contributed amount may be returned to the Company's enterprise annuity account based on his/her actual working time. Such returned contributions had no impact on the level of annuity contributions for existing employees. The Group did not utilise any of such forfeited contributions to reduce the existing level of contributions. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 64 - 11. Depreciation and amortisation expenses | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Amortisation of land-use rights and other intangible assets | 556,849 | 571,151 | | Depreciation of property and equipment | 1,073,402 | 1,123,754 | | - Right-of-use assets | 547,296 | 590,215 | | - Other property and equipment | 526,106 | 533,539 | | Amortisation of leasehold improvements and long-term | | | | deferred expenses | 136,768 | 151,130 | | Depreciation of investment properties | 7,592 | 10,374 | | Total | 1,774,611 | 1,856,409 | 12. Tax and surcharges | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | City maintenance and construction tax | 67,642 | 71,367 | | Education surcharges | 49,472 | 52,929 | | Others | 62,303 | 63,368 | | Total | 179,417 | 187,664 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 65 - 13. Other operating expenses | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Cost of commodity sales | 7,947,202 | 4,935,251 | | IT expenses | 2,025,726 | 2,283,005 | | Consulting fees | 490,561 | 352,224 | | Marketing, advertising and promotion expenses | 423,647 | 482,319 | | Stock exchange fees | 366,592 | 476,254 | | Postal and communication expenses | 326,875 | 322,632 | | Travel expenses | 318,539 | 377,100 | | Litigation and regulatory matters(Note58) | 176,067 | 700,119 | | Securities investor protection funds | 106,242 | 110,900 | | Utilities | 65,681 | 68,409 | | Products distribution expenses | 54,924 | 55,377 | | Rental expenses | 31,234 | 39,142 | | Auditors' remuneration | 12,578 | 12,022 | | Others | 1,498,909 | 1,429,619 | | Total | 13,844,777 | 11,644,373 | 14. Impairment losses under expected credit loss model, net of reversal | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Reversal of impairment losses against cash and bank balances | (190) | (290) | | Provision for impairment losses against cash held on behalf of brokerage clients | 15 | - | | Provision for / (reversal of) impairment losses against | | | | margin accounts receivable | 242,700 | (6,325) | | Provision for impairment losses against other receivables | | | | and interest receivable | 4,453 | 23,917 | | (Reversal of) /provision for impairment losses against debt | | | | instruments at amortised cost | (125) | 367 | | (Reversal of) /provision for impairment losses against | | | | financial assets at fair value through other comprehensive | | | | income | (32,659) | 11,753 | | Reversal of impairment losses against financial assets held | | | | under resale agreements | (36,155) | (485,801) | | Provision for impairment losses against accounts receivable | 68,230 | 45,433 | | Total | 246,269 | (410,946) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 66 - 15. Income tax expense (a) Taxation in the consolidated income statements represents: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Current income tax | | | | - Mainland China | 882,656 | 1,080,281 | | - Hong Kong | 73,273 | 128,348 | | - Overseas | 309,284 | 321,369 | | | 1,265,213 | 1,529,998 | | Adjustment in respect of prior years | | | | - Mainland China | (27,219) | (28,198) | | Deferred tax | (1,404,528) | (333,396) | | Total | (166,534) | 1,168,404 | (1) According to the PRC Corporate Income Tax ("CIT") Law that took effect on 1 January 2008, the Company and the Group's subsidiaries in the Mainland China are subject to CIT at the statutory tax rate of 25%. (2) Hong Kong profits tax has been provided at the rate of 16.5% on the estimated assessable profits. The federal income tax of subsidiaries in the United States were provided at the rate of 21%, whereas the states' income tax are charged at the applicable local tax rates. (3) As at 31 December 2024, the profits from jurisdictions where the Pillar Two legislation is enacted or substantially enacted but not yet in effect is less than 0.1 per cent of the Group's total profits. The Group is continuing to assess the impact of the Pillar Two income taxes legislation on its future financial performance. The Group has applied the temporary mandatory exception for recognising and disclosing deferred tax assets and liabilities for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 15. Income tax expense - continued - 67 - (b) Reconciliation between income tax expense and accounting profit at applicable tax rate: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Profit before income tax | 15,352,340 | 14,204,664 | | Notional tax calculated using the PRC statutory tax rate | 3,838,085 | 3,551,166 | | Tax effect of non-deductible expenses | 190,172 | 274,688 | | Tax effect of non-taxable income | (2,522,090) | (2,302,220) | | Tax effect of deductible temporary differences or unused | | | | tax losses not recognised | 9,214 | 544 | | Effect of using the deductible tax losses for which no | | | | deferred tax asset was recognised in previous period | (5,054) | (10,033) | | Effect of different tax rates of the subsidiaries | (1,420,405) | (141,529) | | Adjustment in respect of prior years | (27,219) | (28,198) | | Others (Note) | (229,237) | (176,014) | | Income tax expense for the year | (166,534) | 1,168,404 | Note: The balance of others mainly represents tax impact of dividends to perpetual subordinated bonds. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 68 - 16. Directors' and supervisors' remuneration The remuneration of directors and supervisors for current year who held office is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | Year ended 31 December 2024 | | | | | | | | Salaries, allowances | Contribution | | | | | | and benefits | to pension | Annuity | | | Name | Directors' fees | in kind | schemes | plan | Total | | Executive directors | | | | | | | Zhang Wei | - | 812 | 47 | 219 | 1,078 | | Zhou Yi | - | 1,440 | 47 | 151 | 1,638 | | Yin lihong | - | 731 | 47 | 153 | 931 | | Non-executive directors | | | | | | | Ding Feng (1) | - | - | - | - | - | | Chen Zhongyang (1) | - | - | - | - | - | | Ke Xiang (1) | - | - | - | - | - | | Zhang Jin Xin (1) | - | - | - | - | - | | Liu Changchun (1)(3) | - | - | - | - | - | | Independent non-executive | | | | | | | directors | | | | | | | Wang Jianwen | 240 | - | - | - | 240 | | Wang Quansheng | 240 | - | - | - | 240 | | Peng Bing | 240 | - | - | - | 240 | | Wang Bing | 240 | - | - | - | 240 | | Tse Yung Hoi (5) | 120 | - | - | - | 120 | | Lo Kin Wing Terry (4) | 140 | - | - | - | 140 | | Supervisors | | | | | | | Gu Chengzhong | - | 1,094 | 47 | 158 | 1,299 | | Li Chongqi (1)(5) | - | - | - | - | - | | Yu Lanying (1) | - | - | - | - | - | | Zhang Xiaohong (1) | - | - | - | - | - | | Zhou Hongrong (1) | - | - | - | - | - | | Wang Ying | - | 1,003 | 47 | 83 | 1,133 | | Wang Juan | - | 652 | 47 | 73 | 772 | | Lv Wei (1)(4) | - | - | - | - | - | | Total | 1,220 | 5,732 | 282 | 837 | 8,071 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 16. Directors' and supervisors' remuneration - continued - 69 - | | | | | | | | --- | --- | --- | --- | --- | --- | | | Year ended 31 December 2023 | | | | | | | | Salaries, allowances | Contribution | | | | | | and benefits | to pension | Annuity | | | Name | Directors' fees | in kind | schemes | plan | Total | | Executive directors | | | | | | | Zhang Wei | - | 802 | 46 | 167 | 1,015 | | Zhou Yi | - | 1,440 | 46 | 147 | 1,633 | | Yin lihong | - | 722 | 46 | 148 | 916 | | Non-executive directors | | | | | | | Ding Feng (1) | - | - | - | - | - | | Chen Zhongyang (1) | - | - | - | - | - | | Ke Xiang (1) | - | - | - | - | - | | Liu Changchun (1)(3) | - | - | - | - | - | | Zhang Jin Xin (1) | - | - | - | - | - | | Hu Xiao (1)(2) | - | - | - | - | - | | Independent non-executive | | | | | | | directors | | | | | | | Wang Jianwen | 240 | - | - | - | 240 | | Wang Quansheng | 240 | - | - | - | 240 | | Peng Bing | 240 | - | - | - | 240 | | Wang Bing | 240 | - | - | - | 240 | | Tse Yung Hoi | 240 | - | - | - | 240 | | Supervisors | | | | | | | Gu Chengzhong | - | 1,079 | 46 | 155 | 1,280 | | Li Chongqi (1) | - | - | - | - | - | | Yu Lanying (1) | - | - | - | - | - | | Zhang Xiaohong (1) | - | - | - | - | - | | Zhou Hongrong (1) | - | - | - | - | - | | Wang Ying | - | 996 | 46 | 80 | 1,122 | | Wang Juan | - | 621 | 46 | 71 | 738 | | Total | 1,200 | 5,660 | 276 | 768 | 7,904 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 16. Directors' and supervisors' remuneration - continued - 70 - (1) The remunerations of these non-executive directors and supervisors of the Company were borne by its shareholders and other related parties including Jiangsu Guoxin Investment Group Limited, Jiangsu Communications Holdings Co., Ltd., Jiangsu SOHO Holdings Group Co., Ltd. and Jiangsu Govtor Capital Group Co., Ltd., etc. No allocation of the remunerations between these shareholders and the Group has been made during the reporting period. (2) Resigned as non-executive director on 19 September 2023. (3) Appointed as non-executive director on 24 November 2023. (4) Appointed as independent non-executive director or supervisor on 20 June 2024. (5) Resigned as independent non-executive director or supervisor on 20 June 2024. (6) For the year ended 31 December 2024, in addition to remuneration of directors and supervisors as disclosed above, the Company recognised share-based payment expense amounted to RMB 663 thousand, for the restricted shares granted to Zhou Yi under Restricted Share Incentive Scheme of A Shares (for the year ended 31 December 2023: RMB1,389 thousand). The total pre-tax remuneration in the table represents the compensation accrued and paid during the year 2024 and 2023, respectively, which was received by the directors or supervisors during their tenure in the relevant positions. The total compensation packages of the directors and supervisors for the fiscal year 2024 have not been finalised and will be further disclosed when they are confirmed. The finalised bonus of the directors and supervisors for the fiscal year 2023 are as follows: Zhang Wei 644 thousand, Zhou Yi 2,310 thousand, Yin Lihong 578 thousand, Gu Chengzhong 2,341 thousand, Wang Ying 1,274 thousand, Wang Juan 1,599 thousand. There were no amounts paid during the year ended 31 December 2024 to the directors and supervisors in connection with their retirement from employment or compensation for loss of office with the Company, or inducement to join. During the year, there was no arrangement under which a director or a supervisor who had resigned waived or agreed to waive any remuneration. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 71 - 17. Individuals with highest emoluments Of the five individuals with the highest emoluments, none are directors or supervisors whose emoluments are disclosed in Note 16. The aggregate of the emoluments are as follows: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Salaries and allowances | 12,768 | 11,272 | | Discretionary bonuses | 37,928 | 70,652 | | Employer's contribution to pension schemes | 262 | 82 | | Share-based payments | 525 | 868 | | Total | 51,483 | 82,874 | The emoluments with the highest emoluments are within the following bands: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | | Number of | Number of | | | individuals | individuals | | RMB8,000,001 to RMB9,000,000 | 2 | - | | RMB9,000,001 to RMB10,000,000 | 1 | - | | RMB10,000,001 to RMB11,000,000 | 1 | 1 | | Over RMB11,000,000 | 1 | 4 | | Total | 5 | 5 | No emoluments are paid or payable to these individuals as retirement from employment or as an inducement to join or upon joining the Company or as compensation for loss of office during the reporting period. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 72 - 18. Other comprehensive income | | | | | | --- | --- | --- | --- | | | Year ended 31 December 2024 | | | | | Before tax | Tax expense | Net of tax | | Net gain from debt instruments at FVOCI | 58,221 | (12,120) | 46,101 | | Equity instruments at FVOCI: | | | | | - Net movements in fair value reserve | | | | | (non-recycling) | (15) | 97 | 82 | | Reserve from cash flow hedging | | | | | instruments | (83,916) | - | (83,916) | | Share of other comprehensive income of | | | | | associates and joint ventures | 367,987 | - | 367,987 | | Exchange differences on translation of | | | | | financial statements in foreign | | | | | currencies | 267,501 | - | 267,501 | | Total | 609,778 | (12,023) | 597,755 | | | | | | | --- | --- | --- | --- | | | Year ended 31 December 2023 | | | | | Before tax | Tax expense | Net of tax | | Net gain from debt instruments at FVOCI | 106,977 | (22,779) | 84,198 | | Equity instruments at FVOCI: | | | | | - Net movements in fair value reserve | | | | | (non-recycling) | 17,759 | (4,760) | 12,999 | | Reserve from cash flow hedging | | | | | instruments | (3,571) | - | (3,571) | | Share of other comprehensive income of | | | | | associates and joint ventures | (40,580) | - | (40,580) | | Exchange differences on translation of | | | | | financial statements in foreign | | | | | currencies | 262,953 | - | 262,953 | | Total | 343,538 | (27,539) | 315,999 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 73 - 19. Basic and diluted earnings per share (1) Basic earnings per share Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding: | | | | | | --- | --- | --- | --- | | | | Year ended 31 December | | | | Note | 2024 | 2023 | | Consolidated net profit attributable to ordinary | | | | | shareholders of the Company (in RMB | | | | | thousands) | 19(1)(a) | 14,635,336 | 12,167,133 | | Weighted average number of ordinary shares | | | | | (in thousands) | 19(1)(b) | 9,009,279 | 8,996,366 | | Basic earnings per share attributable to ordinary | | | | | shareholders (in RMB per share) | | 1.62 | 1.35 | (a) Consolidated net profit attributable to ordinary shareholders of the Company (in RMB thousands) | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Consolidated net profit attributable to equity shareholders of | | | | the Company | 15,351,162 | 12,750,633 | | Dividends declared under Restricted Share Incentive | | | | Scheme of A Shares | (7,960) | (12,507) | | Profit attributable to perpetual subordinated bonds holders | | | | of the Company (i) | (707,866) | (570,993) | | Consolidated net profit attributable to ordinary shareholders | | | | of the Company (Adjusted) | 14,635,336 | 12,167,133 | (i) For the purpose of calculating basic earnings per ordinary share in respect of the year ended 31 December 2024, RMB 708 million (2023: RMB 571million) attributable to perpetual subordinated bonds were deducted from profits attributable to shareholders of the Company. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 19. Basic and diluted earnings per share - continued (1) Basic earnings per share - continued - 74 - (b) Weighted average number of ordinary shares (in thousands) | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Number of ordinary shares as at 1 January | 9,074,663 | 9,075,589 | | Decrease in weighted average number of ordinary shares | (65,384) | (79,223) | | Weighted average number of ordinary shares | 9,009,279 | 8,996,366 | (2) Diluted earnings per share Diluted earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the Company (diluted) by the weighted average number of ordinary shares outstanding: | | | | | | --- | --- | --- | --- | | | | Year ended 31 December | | | | Note | 2024 | 2023 | | Consolidated net profit attributable to ordinary | | | | | shareholders of the Company (diluted) | 19(2)(a) | 14,638,263 | 11,984,829 | | Weighted average number of ordinary shares | | | | | outstanding (in thousands) | 19(2)(b) | 9,016,227 | 9,006,563 | | Diluted earnings per share attributable to | | | | | ordinary shareholders (in Renminbi per share) | | 1.62 | 1.33 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 19. Basic and diluted earnings per share - continued (2) Diluted earnings per share - continued - 75 - (a) Consolidated net profit attributable to ordinary shareholders of the Company (diluted) is calculated as follows: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Consolidated net profit attributable to ordinary shareholders | | | | of the Company (Adjusted) | 14,635,336 | 12,167,133 | | Diluted adjustments: | | | | Effect of dividends declared under Restricted Stock | | | | Incentive Scheme of A Shares(i) | 7,960 | 12,507 | | Effect of conversion of convertible bonds from the associate | | | | of the Company (ii) | - | (192,227) | | Assumed vesting of shares granted to employees of a | | | | subsidiary (iii) | (5,033) | (2,584) | | Consolidated net profit attributable to ordinary shareholders | | | | of the Company (diluted) | 14,638,263 | 11,984,829 | (i) The Group granted Restricted Stock Incentive Scheme of A shares to certain employees in 2021. Diluted earnings per share should take into account both the impact of the cash dividend of the current period distributed to the holders of restricted shares who are expected to reach the unlocking conditions and estimate number of restricted shares which will be unlocked. After considering the abovementioned impact, the Restricted Stock Incentive Scheme has a dilutive effect for the year ended 31 December 2024 (2023: dilutive). (ii) Bank of Jiangsu Co., Ltd. ("Bank of Jiangsu"), the associate of the Company issued convertible bonds in 2019. Diluted earnings per share takes into account the potential dilutive impact on the Group's share of profits of this associate due to the potential full conversion of bonds to shares. The convertible bond was fully redeemed and delisted in October 2023. (iii) The dilutive effect is due to the share-based payment schemes of AssetMark Financial Holdings, Inc. ("AssetMark"). (b) Weighted average number of ordinary shares outstanding (diluted) is calculated as follows: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Weighted average number of ordinary shares at 31 | | | | December | 9,009,279 | 8,996,366 | | Diluted adjustments: | | | | Effect of Restricted Stock Incentive Scheme of A shares | 6,948 | 10,197 | | Weighted average number of ordinary shares(diluted) | 9,016,227 | 9,006,563 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 76 - 20. Property and equipment | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Motor | Electronic | Furniture | Construction | Right-of-use | | | | Buildings | vehicles | equipment | and fixtures | in progress | assets | Total | | Cost | | | | | | | | | As at 1 January 2024 | 4,848,570 | 156,796 | 2,118,972 | 487,843 | 565,790 | 2,618,734 | 10,796,705 | | Additions | 286 | 686 | 182,403 | 41,811 | 764,068 | 358,395 | 1,347,649 | | Transfer during the year | - | - | 518 | 4,259 | (54,744) | - | (49,967) | | Transfer in from investment | | | | | | | | | properties (Note 21) | 2,163 | - | - | - | - | - | 2,163 | | Disposals | - | (1,790) | (65,211) | (4,524) | - | (289,773) | (361,298) | | Disposal of subsidiaries | - | - | (82,966) | (100,278) | - | (328,811) | (512,055) | | Reclassified as held for sale | - | (1,217) | (3,938) | (744) | - | (7,662) | (13,561) | | As at 31 December 2024 | 4,851,019 | 154,475 | 2,149,778 | 428,367 | 1,275,114 | 2,350,883 | 11,209,636 | | Accumulated depreciation | | | | | | | | | As at 1 January 2024 | (1,392,980) | (102,062) | (1,219,878) | (311,593) | - | (1,250,482) | (4,276,995) | | Charge for the year | (138,159) | (10,752) | (312,865) | (64,330) | - | (547,296) | (1,073,402) | | Transfer in from investment | | | | | | | | | properties (Note 21) | (1,790) | - | - | - | - | - | (1,790) | | Disposals | - | 1,375 | 56,517 | 1,412 | - | 277,395 | 336,699 | | Disposal of subsidiaries | - | - | 68,203 | 54,999 | - | 164,956 | 288,158 | | Reclassified as held for sale | - | 839 | 3,188 | 532 | - | 2,547 | 7,106 | | As at 31 December 2024 | (1,532,929) | (110,600) | (1,404,835) | (318,980) | - | (1,352,880) | (4,720,224) | | Carrying amount | | | | | | | | | As at 31 December 2024 | 3,318,090 | 43,875 | 744,943 | 109,387 | 1,275,114 | 998,003 | 6,489,412 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Motor | Electronic | Furniture | Construction | Right-of-use | | | | Buildings | vehicles | equipment | and fixtures | in progress | assets | Total | | Cost | | | | | | | | | As at 1 January 2023 | 4,689,613 | 161,582 | 1,917,816 | 424,009 | 195,750 | 2,515,403 | 9,904,173 | | Additions | 33,595 | 8,154 | 274,094 | 90,614 | 471,520 | 612,601 | 1,490,578 | | Transfer during the year | - | - | 650 | 5,811 | (101,480) | - | (95,019) | | Transfer in from investment | | | | | | | | | properties (Note 21) | 125,660 | - | - | - | - | - | 125,660 | | Disposals | (298) | (12,940) | (73,588) | (32,591) | - | (509,270) | (628,687) | | As at 31 December 2023 | 4,848,570 | 156,796 | 2,118,972 | 487,843 | 565,790 | 2,618,734 | 10,796,705 | | Accumulated depreciation | | | | | | | | | As at 1 January 2023 | (1,202,470) | (92,247) | (945,500) | (271,132) | - | (1,105,441) | (3,616,790) | | Charge for the year | (135,906) | (17,200) | (326,871) | (53,562) | - | (590,215) | (1,123,754) | | Transfer in from investment | | | | | | | | | properties (Note 21) | (54,732) | - | - | - | - | - | (54,732) | | Disposals | 128 | 7,385 | 52,493 | 13,101 | - | 445,174 | 518,281 | | As at 31 December 2023 | (1,392,980) | (102,062) | (1,219,878) | (311,593) | - | (1,250,482) | (4,276,995) | | Carrying amount | | | | | | | | | As at 31 December 2023 | 3,455,590 | 54,734 | 899,094 | 176,250 | 565,790 | 1,368,252 | 6,519,710 | As at 31 December 2024, included in buildings, there is a carrying amount of RMB 35.27 million for which the Group has yet to obtain the relevant land or building certificates (as at 31 December 2023: RMB37.57 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 77 - 21. Investment properties | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Cost | | | | As at 1 January | 262,472 | 388,132 | | Transfer in from other current assets (Note 36) | 79,925 | - | | Transfer to property and equipment (Note 20) | (2,163) | (125,660) | | As at 31 December | 340,234 | 262,472 | | Accumulated depreciation | | | | As at 1 January | (121,641) | (165,999) | | Charge for the year | (7,592) | (10,374) | | Transfer to property and equipment (Note 20) | 1,790 | 54,732 | | As at 31 December | (127,443) | (121,641) | | Impairment | | | | As at 1 January | (4,547) | (4,547) | | Transfer in from other current assets (Note 36) | (26,113) | - | | As at 31 December | (30,660) | (4,547) | | Carrying amount | 182,131 | 136,284 | As at 31 December 2024, included in investment properties, there is a carrying amount of RMB 4.00 million, for which the Group has yet to obtain the relevant land or building certificates (as at 31 December 2023: RMB4.37 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 78 - 22. Goodwill | | | | --- | --- | | Cost | | | As at 1 January 2024 | 3,419,332 | | Disposal of subsidiaries | (3,367,990) | | As at 31 December 2024 | 51,342 | | Impairment losses | | | As at 1 January 2024 | - | | Impairment losses | - | | As at 31 December 2024 | - | | Carrying amounts | | | As at 1 January 2024 | 3,419,332 | | As at 31 December 2024 | 51,342 | | Cost | | | As at 1 January 2023 | 3,352,219 | | Adjustment of acquisition through business combination | 14,631 | | Effect of movements in exchange rates | 52,482 | | As at 31 December 2023 | 3,419,332 | | Impairment losses | | | As at 1 January 2023 | - | | Impairment losses | - | | As at 31 December 2023 | - | | Carrying amounts | | | As at 1 January 2023 | 3,352,219 | | As at 31 December 2023 | 3,419,332 | The Group acquired the investment banking business together with the relevant assets and liabilities, and the interest in Huatai United Securities Co., Ltd. in 2006. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill. The Group acquired the futures brokerage business together with the relevant assets and liabilities, and the interest in Huatai Futures Co., Ltd. (previously known as Great Wall Futures Co., Ltd.) in 2006. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 22. Goodwill - continued - 79 - The Group acquired the overseas asset management business together with the relevant assets and liabilities, and the interest in AssetMark Financial Holdings, Inc. ("Assetmark") in 2016. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill. In 2024, Huatai International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in AssetMark, and the relevant goodwill amounting to RMB 3,367,990 thousand is written off accordingly. The details of the disposal transaction are disclosed in Note 24(b). AssetMark Financial Holdings, Inc. acquired 100% of the equity of Global Financial Private Capital, Inc. in April 2019. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill of Global Financial Private Capital, Inc.. In 2024, Huatai International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly. AssetMark Financial Holdings, Inc. acquired 100% of the equity of WBI OBS Financial, Inc. in February 2020. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill of WBI OBS Financial, Inc.. In 2021, the Group adjusts its organizational structure. AssetMark Financial Holdings, Inc. 's subsidiary, AssetMark, Inc., merged WBI OBS Financial, LLC. Considering this is a combination under the same control, the goodwill remains unchanged. In 2024, Huatai International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly. AssetMark Financial Holdings, Inc. acquired 100% of the equity of Voyant, Inc. in July 2021. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill of Voyant, Inc.. In 2024, Huatai International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly. AssetMark Financial Holdings, Inc. acquired 100% of the equity of Adhesion Wealth Advisor Solutions, Inc. in December 2022. The Group recognised the excess of fair value of the consideration transferred over the fair value of the net identifiable assets acquired as goodwill of Adhesion Wealth Advisor Solutions, Inc.. During the year of 31 December 2023, the AssetMark Financial Holdings, Inc. finalized the valuation of identifiable assets and liabilities and goodwill and completed the acquisition accounting. In 2024, Huatai International Investment Holding Co., Ltd., the wholly-owned overseas subsidiary of the Company, sold all of the common shares it held in AssetMark, and the relevant goodwill is written off accordingly. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 22. Goodwill - continued - 80 - Impairment testing on goodwill Goodwill is allocated to the Group's cash-generating units ("CGU") identified according to operating segment as follows: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Investment banking | 51,090 | 51,090 | | Futures brokerage | 252 | 252 | | Overseas asset management | - | 3,367,990 | | Total | 51,342 | 3,419,332 | For the investment banking and futures brokerage CGU, the cash flows generated from each subsidiary acquired are independent. Therefore, each of these acquired subsidiaries is a separate CGU. The Group performed the impairment test for the goodwill generated from each CGU. (1) Investment banking and futures brokerage CGU The recoverable amounts of each CGU are determined based on value-in-use calculations, respectively. These calculations use cash flow projections with reference to financial budgets approved by management covering certain period. Cash-flows beyond the certain period are extrapolated using an estimated weighted average growth rate, which does not exceed the long- term average growth rate. As at 31 December 2024, the discount rate used by the investment banking and futures brokerage CGUs were 16.00% and 13.33%, respectively (16.00% and 16.39%, respectively, as at 31 December 2023), and the weighted average growth rate were 5.00% and 6.60%, respectively (5.00% and 6.60%, respectively, as at 31 December 2023). The discount rate and weighted average growth rate reflected the risks and growth expectations of the relevant CGUs. Other major assumptions for the recoverable amount estimation relate to the estimation of cash inflows / outflows which include budgeted income and profit margins. Such estimation is based on the CGU's past performance and management's expectations for the market development. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 81 - 23. Land-use rights and other intangible assets | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Enterprise | | | | | | | Existing | distribution | | | | | | | relationships | channel | | | | | | Land- | with broker- | customer | | Software | | | | use rights | dealers | relationships | Trade names | and others | Total | | Cost | | | | | | | | As at 1 January 2024 | 1,768,330 | 4,011,405 | 195,859 | 355,792 | 4,696,188 | 11,027,574 | | Additions | - | - | - | - | 601,230 | 601,230 | | Disposals | - | - | - | - | (1,228) | (1,228) | | Disposal of subsidiaries | - | (4,102,171) | (201,988) | (364,190) | (2,631,825) | (7,300,174) | | Reclassified as held for sale | - | - | - | - | (6,122) | (6,122) | | Exchange differences | - | 90,766 | 6,129 | 8,398 | 60,233 | 165,526 | | As at 31 December 2024 | 1,768,330 | - | - | - | 2,718,476 | 4,486,806 | | Accumulated amortisation | | | | | | | | As at 1 January 2024 | (200,089) | - | - | (203,590) | (3,108,635) | (3,512,314) | | Charge for the year | (41,771) | - | - | (2,950) | (546,639) | (591,360) | | Disposals | - | - | - | - | 1,228 | 1,228 | | Disposal of subsidiaries | - | - | - | 211,481 | 1,479,708 | 1,691,189 | | Reclassified as held for sale | - | - | - | - | 5,297 | 5,297 | | Exchange differences | - | - | - | (4,941) | (40,006) | (44,947) | | As at 31 December 2024 | (241,860) | - | - | - | (2,209,047) | (2,450,907) | | Carrying amount | | | | | | | | As at 31 December 2024 | 1,526,470 | - | - | - | 509,429 | 2,035,899 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Enterprise | | | | | | | Existing | distribution | | | | | | | relationships | channel | | | | | | Land- | with broker- | customer | | Software | | | | use rights | dealers | relationships | Trade names | and others | Total | | Cost | | | | | | | | As at 1 January 2023 | 1,768,330 | 3,931,667 | 242,226 | 348,720 | 4,087,137 | 10,378,080 | | Adjustment of acquisition | | | | | | | | through business | | | | | | | | combination | - | - | (50,287) | - | - | (50,287) | | Additions | - | - | - | - | 603,829 | 603,829 | | Disposals | - | - | - | - | (44,197) | (44,197) | | Exchange differences | - | 79,738 | 3,920 | 7,072 | 49,419 | 140,149 | | As at 31 December 2023 | 1,768,330 | 4,011,405 | 195,859 | 355,792 | 4,696,188 | 11,027,574 | | Accumulated amortisation | | | | | | | | As at 1 January 2023 | (158,886) | - | - | (178,508) | (2,600,870) | (2,938,264) | | Charge for the year | (41,203) | - | - | (21,035) | (524,401) | (586,639) | | Disposals | - | - | - | - | 42,097 | 42,097 | | Exchange differences | - | - | - | (4,047) | (25,461) | (29,508) | | As at 31 December 2023 | (200,089) | - | - | (203,590) | (3,108,635) | (3,512,314) | | Carrying amount | | | | | | | | As at 31 December 2023 | 1,568,241 | 4,011,405 | 195,859 | 152,202 | 1,587,553 | 7,515,260 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 82 - 24. Investments in subsidiaries (a) Details of principal subsidiaries The following list contains only the particulars of subsidiaries which principally affected the results, assets or liabilities of the Group. Unless otherwise stated, the class of shares hold is ordinary, and the issued and fully paid-up capital is expressed in Renminbi Yuan: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | Place and date of | | | | | | | | | Incorporation / | Issued and fully | Equity interest held by the Company | | | Auditor (1) | | | Name of company | establishment and business | paid-up capital | as at 31 December | | Principal activity | GAAP | | | | | | 2024 | 2023 | | 2024 | 2023 | | | PRC | RMB | | | Investment | Deloitte PRC | Deloitte PRC | | Huatai United Securities Co., Ltd. (4) | 5 September 1997 | 997,480,000 | 100.00% | 100.00% | banking | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Futures | Deloitte PRC | Deloitte PRC | | Huatai Futures Co., Ltd. (4) | 10 July 1995 | 3,939,000,000 | 100.00% | 100.00% | brokerage | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Equity | Deloitte PRC | Deloitte PRC | | Huatai Purple Gold Investment Co., Ltd. (4) | 12 August 2008 | 5,200,000,000 | 100.00% | 100.00% | investment | PRC GAAP | PRC GAAP | | | Hong Kong | HKD | | | Securities | Deloitte | Deloitte | | Huatai Financial Holdings (Hong Kong) Limited (2) | 23 November 2006 | 8,800,000,000 | 100.00% | 100.00% | and futures brokerage | HKFRSs | HKFRSs | | | Hong Kong | HKD | | | Holding | Deloitte | Deloitte | | Huatai International Financial Holdings Co., Ltd. | 5 April 2017 | 10,200,000,002 | 100.00% | 100.00% | company | HKFRSs | HKFRSs | | | PRC | RMB | | | Alternative | Deloitte PRC | Deloitte PRC | | Huatai Innovative Investment Co., Ltd. (4) | 21 November 2013 | 2,600,000,000 | 100.00% | 100.00% | investment | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Asset | Deloitte PRC | Deloitte PRC | | Huatai Securities (Shanghai) Assets Management Co., Ltd. (4) | 16 October 2014 | 2,600,000,000 | 100.00% | 100.00% | management | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Equity | Deloitte PRC | Deloitte PRC | | Beijing Huatai Ruihe Medical Industry Investment (Limited Partnership) (2)(3)(5) | 1 June 2015 | - | 45.00% | 45.00% | investment | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Equity | Deloitte PRC | Deloitte PRC | | Yili Suxin Investment Fund (Limited Partnership) (2)(3)(5) | 19 February 2016 | 1,348,088,000 | 24.73% | 24.73% | investment | PRC GAAP | PRC GAAP | | | US | USD | | | Asset | | KPMG LLP | | AssetMark Financial Holdings, Inc. (2) | 1 January 1996 | 73,563 | - | 68.40% | management | N/A | US GAAP | | | PRC | RMB | | | Spread trading and | Deloitte PRC | Deloitte PRC | | Huatai Great Wall Capital Management Co., Ltd. (2)(4) | 6 December 2013 | 650,000,000 | 100.00% | 100.00% | commodity warrant trading | PRC GAAP | PRC GAAP | | | PRC | RMB | | | Investment | Deloitte PRC | Deloitte PRC | | Huatai Great Wall Investment Management Co., Ltd. (2)(4) | 3 August 2017 | 550,000,000 | 100.00% | 100.00% | management | PRC GAAP | PRC GAAP | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 24. Investments in subsidiaries - continued (a) Details of principal subsidiaries - continued - 83 - (1) Auditors of the respective subsidiaries of the Group are as follows: - Deloitte PRC represents Deloitte Touche Tohmatsu Certified Public Accountants LLP, a firm of certified public accountants registered in PRC; - Deloitte represents Deloitte Touche Tohmatsu in Hong Kong, a firm of certified public accountants registered in Hong Kong; - KPMG LLP represents KPMG in the United States, a firm of certified public accountants registered in the United States. (2) These subsidiaries are indirectly controlled by the Company. (3) As at 31 December 2024, the Company indirectly held less than 50% of the equity of Beijing Huatai Ruihe Medical Industry Investment (Limited Partnership) and Yili Suxin Investment Fund (Limited Partnership). According to the articles of partnership agreement, the Company has the power to control these funds and has the ability to use the power to affect the Company's variable return amount. Therefore, they are included in the scope of the consolidated financial statements. (4) Company with limited liability in Mainland China. (5) Limited partnership in Mainland China. (b) Disposal of subsidiaries AssetMark Financial Holdings, Inc. Following the approval at the ninth meeting of the sixth board of directors on 25 April 2024, the Group intended to sell all 50,873,799 common shares held by its wholly-owned overseas subsidiary, Huatai International Investment Holdings Limited ("Huatai International"), in AssetMark. The Group completed the disposal of all shares of AssetMark held by it on September 5, 2024 (New York time) (the "Closing Date"), with the final consideration for the disoposal of AssetMark being USD 1,793 million (equivalent to RMB 12,755 million). The Group has ceased to hold any shares in AssetMark since the Closing Date and AssetMark will no longer be consolidated by the Group. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 24. Investments in subsidiaries - continued (b) Disposal of subsidiaries - continued AssetMark Financial Holdings, Inc. - continued - 84 - Analysis of assets and liabilities over which control was lost: | | | | --- | --- | | | As at 5 | | | September | | | 2024 | | Property and equipment | 223,897 | | Goodwill | 3,367,990 | | Land-use rights and other intangible assets | 5,608,985 | | Accounts receivable | 176,623 | | Other receivables, prepayments and other current assets | 205,809 | | Financial assets at fair value through profit or loss | 329,516 | | Cash and bank balances | 1,958,446 | | Employee benefits payable | (212,932) | | Other payables and accruals | (704,838) | | Contract liabilities | (361,230) | | Deferred tax liabilities | (993,715) | | Net assets disposed of | 9,598,551 | | | | | Consideration received: | | | Cash received | 12,754,675 | | Total consideration received | 12,754,675 | | Consideration received | 12,754,675 | | Less: net assets disposed of | (9,598,551) | | Non-controlling interests | 3,025,855 | | Reclassification of cumulative translation reserve | | | upon disposal of Assetmark to profit or loss | 153,568 | | Gain on disposal | 6,335,547 | | | | | Net cash inflow arising on disposal: | | | Cash consideration | 12,754,675 | | Less: cash and cash equivalents disposed of | (1,958,446) | | Net cash inflow arising on disposal | 10,796,229 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 24. Investments in subsidiaries - continued - 85 - (c) A disposal group held for sale Following the approval at the 14th meeting of the sixth session of the Board of Directors on December 20, 2024, the Company agreed to transfer its 20% equity interest in Jiangsu Equity Exchange Center Co., Ltd. ("Jiangsu Equity Exchange Center") to Jiangsu Jincai Investment Co., Ltd. Upon completion of the transaction, the Company’s shareholding in Jiangsu Equity Exchange Center will be reduced to 32%, resulting in the loss of control over the entity. Consequently, Jiangsu Equity Exchange Center will become an associate of the Company. As of the end of the reporting period, the closing of this transaction had not yet been finalized, and the related procedures were progressing as planned. The assets and liabilities of Jiangsu Equity Exchange Center have been classified as a disposal group held for sale. The equity transfer was ultimately completed in January 2025. The net proceeds from the disposal are expected to exceed the net carrying amount of the relevant assets and liabilities, and accordingly, no impairment loss has been recognised. The major classes of assets and liabilities of Jiangsu Equity Exchange Center classified as held for sale are as follows: | | | | --- | --- | | | As at 31 | | | December 2024 | | Property and equipment | 6,455 | | Land-use rights and other intangible assets | 825 | | Accounts receivable | 20 | | Other receivables, prepayments and other current assets | 5,357 | | Financial assets at fair value through profit or loss | 318,042 | | Interests in associates | 63,130 | | Deferred tax assets | 12,901 | | Cash and bank balances | 10,109 | | Total assets classified as held for sale | 416,839 | | Accounts payable to brokerage clients | (8,809) | | Employee benefits payable | (61,989) | | Other payables and accruals | (4,604) | | Total liabilities classified as held for sale | (75,402) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 86 - 25. Interests in associates | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Share of net assets | 21,446,915 | 19,496,027 | As at 31 December 2024 , the Group has pledged the shares of interest in an associate with a total book value of RMB 5,214 million to China Securities Finance Corporation Limited ("CSF") for refinancing and supporting the Group's securities lending business (as at 31 December 2023: RMB4,649 million). The following list contains only the particulars of material associates, all of which (except that Bank of Jiangsu has been listed on the Shanghai Stock Exchange) are unlisted corporate entities whose quoted market price is not available: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Proportion of owner ship interest | | | | | | | | | Registered | | | Group's effective | | Held by the | | Held by a | | Principal | | Name of associate | place | Registered capital | | interest | | Company | | subsidiary | | activity | | | | 31/12/2024 | 31/12/2023 | 2024/12/31 | 2023/12/31 | 2024/12/31 | 2023/12/31 | 2024/12/31 | 2023/12/31 | | | | | | | | | | | | | Commercial | | Bank of Jiangsu (i) | Nanjing | 18,351,324 | 18,351,324 | 5.03% | 5.03% | 5.03% | 5.03% | - | - | banking | | China Southern Asset | | | | | | | | | | | | Management Co., | | | | | | | | | | Fund | | Ltd. | Shenzhen | 361,720 | 361,720 | 41.16% | 41.16% | 41.16% | 41.16% | - | - | management | All the above associates are accounted for using the equity method in the consolidated financial statements. (i) The Company has appointed one director in the board of directors of Bank of Jiangsu. The Company exercises significant influence over Bank of Jiangsu by participating in the formulation of financial and operational policies through the director it has appointed. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 25. Interests in associates - continued - 87 - Summarised financial information of Bank of Jiangsu and China Southern Asset Management Co., Ltd. which are individually significant associates to the Group are disclosed below: Bank of Jiangsu | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Gross amounts of the associate | | | | Assets | 3,951,814,000 | 3,403,361,837 | | Liabilities | (3,638,475,403) | (3,144,245,806) | | Net assets | 313,338,597 | 259,116,031 | | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Revenue | 80,815,000 | 74,293,433 | | Profit for the year | 33,258,161 | 30,013,140 | | Other comprehensive income | 6,872,626 | 1,191,493 | | Total comprehensive income | 40,130,787 | 31,204,633 | | Dividend received from the associate | 716,787 | 426,010 | | Carrying amount in the consolidated financial statements | 11,744,260 | 10,577,267 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 25. Interests in associates - continued - 88 - China Southern Asset Management Co., Ltd. | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Gross amounts of the associate | | | | Assets | 17,598,335 | 13,926,073 | | Liabilities | (4,923,657) | (4,303,783) | | Net assets | 12,674,678 | 9,622,290 | | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Revenue | 7,522,605 | 6,741,416 | | Profit for the year | 2,351,599 | 2,011,255 | | Other comprehensive income / (expense) | 12,028 | (1,412) | | Total comprehensive income | 2,363,627 | 2,009,843 | | Other adjustment | 806,170 | - | | Dividend received from the associate | - | 492,991 | | Reconciled to the Group's interest in the associate: | | | | Net assets of the associate attributable to the parent | | | | company | 12,334,396 | 9,324,416 | | The Group's effective interest | 41.16% | 41.16% | | The Group's share of net assets of the associate | 5,076,837 | 3,837,930 | | Carrying amount in the consolidated financial | | | | statements | 5,076,837 | 3,837,930 | Aggregate information of associates that are not individually material: | | | | | --- | --- | --- | | | 2024 | 2023 | | Aggregate carrying amount of individually immaterial | | | | associates in the consolidated financial statements | 4,625,818 | 3,874,991 | | Aggregate amounts of the Group's share of those | | | | associates' gains | (231,374) | 265,093 | | Other comprehensive income | - | - | | Total comprehensive income | (231,374) | 265,093 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 89 - 26. Interests in joint ventures | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Unlisted investment in a joint venture at fair value through | | | | profit or loss (i) | 208,769 | 380,612 | | Unlisted investment in a joint venture | 790,344 | 918,793 | | Total | 999,113 | 1,299,405 | (i) As at 31 December 2024, the Group elected to measure its investment in Huatai International Greater Bay Area Investment Fund, L.P. of RMB208.77 million held through Huatai Financial Holdings (Hong Kong) Limited, a wholly-owned subsidiary, at fair value through profit or loss as management measured the performance of this joint venture on a fair value basis. The following list contains only the particulars of unlisted joint venture, which is accounted for using the equity method in the consolidated financial statements, and details of the joint venture as at 31 December 2024 and 31 December 2023 are as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | Proportion of ownership interest | | | | | | | | Group's | | | | | | Registered | Registered | effective | Held by | Held by | Principal | | Name of joint venture | place | capital | interest | the Company | a subsidiary | activity | | Huatai Merchants (Jiangsu) | | | | | | | | Capital Market Investment | | | | | | | | Fund of Funds (Limited | | | | | | Equity | | Partnership) (i) | Nanjing | 10,001,000 | 10.00% | - | 10.00% | investment | (i) As at 31 December 2024, the Group held 10.00% equity interest of Huatai Merchants (Jiangsu) Capital Market Investment Fund of Funds (Limited Partnership). Pursuant to the limited partnership agreement, the Group and a third party contractually agree to share control of the fund, and have rights to the net assets of the fund. The directors of the Group consider the fund is jointly controlled by the Group and the third party, and it is therefore accounted for as a joint venture of the Group. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 90 - 27. Debt instruments at amortised cost (a) Analysed by nature: Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 40,859,525 | 45,409,678 | | Less: impairment losses | (4,761) | (5,096) | | Total | 40,854,764 | 45,404,582 | | Analysed as: | | | | Listed outside Hong Kong | 19,315,669 | 19,508,797 | | Listed inside Hong Kong | 180,622 | 120,049 | | Unlisted | 21,358,473 | 25,775,736 | | Total | 40,854,764 | 45,404,582 | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 6,939,588 | 4,712,633 | | Less: impairment losses | (630) | (403) | | Total | 6,938,958 | 4,712,230 | | Analysed as: | | | | Listed outside Hong Kong | 3,867,704 | 2,291,361 | | Listed inside Hong Kong | - | 14,921 | | Unlisted | 3,071,254 | 2,405,948 | | Total | 6,938,958 | 4,712,230 | As at 31 December 2024, the Group has pledged debt instruments at amortised cost with a total fair value of RMB 33,578 million and carrying amount of RMB 30,930 million for the purpose of repurchase agreement business and derivative business (as at 31 December 2023: a total fair value of RMB35,024 million and carrying amount of RMB34,265 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 27. Debt instruments at amortised cost - continued - 91 - (b) Analysis of the movements of provision for impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 5,499 | 5,132 | | (Reversal)/charge for the year, net | (125) | 367 | | Other changes | 17 | - | | At the end of the year | 5,391 | 5,499 | 28. Debt instruments at fair value through other comprehensive income (a) Analysed by nature: Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 5,938,076 | 15,027,489 | | Other debt instruments | - | 180,463 | | Total | 5,938,076 | 15,207,952 | | Analysed as: | | | | Listed outside Hong Kong | 271,247 | 2,466,091 | | Listed inside Hong Kong | 360,543 | 1,078,108 | | Unlisted | 5,306,286 | 11,663,753 | | Total | 5,938,076 | 15,207,952 | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 4,197,477 | 1,054,048 | | Total | 4,197,477 | 1,054,048 | | Analysed as: | | | | Listed outside Hong Kong | 845,668 | 271,786 | | Listed inside Hong Kong | - | 782,262 | | Unlisted | 3,351,809 | - | | Total | 4,197,477 | 1,054,048 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 28. Debt instruments at fair value through other comprehensive income - continued (a) Analysed by nature: - continued - 92 - As at 31 December 2024, the Group has pledged debt instruments at fair value through other comprehensive income with a total fair value of RMB1,342 million for the purpose of repurchase agreement business and bond lending business (as at 31 December 2023: RMB2,903 million). As at 31 December 2024, the fair value of debt instruments at fair value through other comprehensive income with commitment were RMB1,023million (as at 31 December 2023: RMB751 million). 29. Equity instruments at fair value through other comprehensive income (a) Analysed by nature: Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Equity securities designated at financial assets at fair value | | | | through other comprehensive income | | | | - Unlisted equity securities | 125,860 | 124,506 | | Total | 125,860 | 124,506 | | Analysed as: | | | | Unlisted | 125,860 | 124,506 | Equity instruments at FVOCI include non-traded equity instruments held by the Group. As the equity instruments are not held for trading purpose, the Group has designated these investments as equity instruments at FVOCI. During the year ended 31 December 2024, the losses from the equity instruments at FVOCI recognised in other comprehensive income amounted to RMB15 thousand (During the year ended 31 December 2023: the gains amounted to RMB17,759 thousand). As a result of the change of investment strategies, the Group disposed certain equity instrument at FVOCI and the corresponding losses amounted to RMB143 thousand (During the year ended 31 December 2023: the losses amounted to RMB1,462 thousand). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 93 - 30. Financial assets held under resale agreements (a) Analysed by collateral type: Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Equity securities | 200,110 | - | | Less: impairment losses | (500) | - | | Total | 199,610 | - | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 12,308,144 | 7,617,629 | | Equity securities | 3,339,156 | 5,495,729 | | Less: impairment losses | (618,509) | (653,126) | | Total | 15,028,791 | 12,460,232 | (b) Analysed by market: Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Shanghai stock exchange | 200,110 | - | | Less: impairment losses | (500) | - | | Total | 199,610 | - | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Inter-bank market | 8,520,557 | 5,238,381 | | Shenzhen stock exchange | 2,760,201 | 3,674,765 | | Shanghai stock exchange | 787,717 | 2,398,939 | | Others | 3,578,825 | 1,801,273 | | Less: impairment losses | (618,509) | (653,126) | | Total | 15,028,791 | 12,460,232 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 30. Financial assets held under resale agreements - continued - 94 - (c) Analysis of the movements of provision for impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 653,126 | 1,138,413 | | Reversal for the year, net | (36,155) | (485,801) | | Other | 2,038 | 514 | | Total | 619,009 | 653,126 | (d) Analysed by remaining contractual maturities of securities-backed lendings: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Within 1 month | 823,232 | 870,766 | | 1 to 3 months | 251,808 | 887,085 | | 3 months to 1 year | 2,264,116 | 3,737,878 | | Over 1 year | 200,110 | - | | Less: impairment losses | (487,960) | (524,112) | | Total | 3,051,306 | 4,971,617 | (e) Analysed by the stage of ECL of securities-backed lendings: | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | Lifetime ECL-not | Lifetime ECL- | | | | 12-month ECL | credit impaired | credit impaired | Total | | Amortised cost | 3,060,224 | - | 479,042 | 3,539,266 | | Impairment losses | (8,918) | - | (479,042) | (487,960) | | Carrying amount | 3,051,306 | - | - | 3,051,306 | | Collateral | 8,030,573 | - | - | 8,030,573 | | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | Lifetime ECL-not | Lifetime ECL- | | | | 12-month ECL | credit impaired | credit impaired | Total | | Amortised cost | 4,987,546 | - | 508,183 | 5,495,729 | | Impairment losses | (17,279) | - | (506,833) | (524,112) | | Carrying amount | 4,970,267 | - | 1,350 | 4,971,617 | | Collateral | 13,797,117 | - | 296,916 | 14,094,033 | As at 31 December 2024, the fair value of the collateral of the Group's financial assets held under resale agreements was RMB 21,431,864 thousand (31 December 2023: RMB22,211,468 thousand). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 95 - 31. Financial assets at fair value through profit or loss Non-current (a) Analysed by type: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Equity securities | 4,387,352 | 6,190,549 | | Mutual funds | 528,732 | 727,238 | | Other debt instruments | 376,065 | 1,034,234 | | Total | 5,292,149 | 7,952,021 | (b) Analysed as: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Listed outside Hong Kong | 493,753 | 372,821 | | Unlisted | 4,798,396 | 7,579,200 | | Total | 5,292,149 | 7,952,021 | Current (a) Analysed by type: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Equity securities | 56,499,288 | 123,416,836 | | Debt securities | 171,564,677 | 195,764,277 | | Mutual funds | 60,547,525 | 61,040,090 | | Private funds | 3,548,647 | 22,344,489 | | Wealth management products | 3,756,018 | 1,418,630 | | Other debt instruments | 329,453 | 1,143,041 | | Total | 296,245,608 | 405,127,363 | (b) Analysed as: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Listed outside Hong Kong | 119,442,341 | 184,553,142 | | Listed inside Hong Kong | 17,830,773 | 30,595,909 | | Unlisted | 158,972,494 | 189,978,312 | | Total | 296,245,608 | 405,127,363 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 31. Financial assets at fair value through profit or loss - continued Current - continued (b) Analysed as: - continued - 96 - As at 31 December 2024, the fund investments with lock-up periods in its investment portfolio held by the Group are RMB880 million (as at 31 December 2023: RMB772 million). As at 31 December 2024, the listed equity securities held by the Group included approximately RMB 710 million of restricted shares (as at 31 December 2023: RMB8,801 million). The restricted shares are listed in the PRC with a legally enforceable restriction on these securities that prevents the Group to dispose of within the specified period. The equity interest in unlisted securities held by the Group are issued by private companies. The value of the securities is measured by comparing with comparable companies that are listed and in the same sector or measured by using other valuation techniques. Non-current financial assets at fair value through profit or loss investments are expected to be realised or restricted for sale beyond one year from the end of the respective reporting periods. The fair value of the Group's investments in unlisted funds, which mainly invest in publicly traded equities listed in the PRC, are valued based on the net asset values of the funds calculated by the respective fund managers by reference to their underlying assets and liabilities' fair values. The fair value of the Group's investments in equity securities without restriction, exchange-listed funds and debt securities are determined with reference to their quoted prices as at reporting date. As at 31 December 2024, the Group has entered into securities lending arrangement with clients that resulted in the transfer of financial assets at fair value through profit or loss investments with total fair value of RMB 1,275 million to external clients (as at 31 December 2023: RMB1,791 million), which did not result in derecognition of the financial assets. The fair value of collateral for the securities lending business is analysed in Note 37(c) together with the fair value of collateral of margin financing business. As at 31 December 2024, the Group has not pledged financial assets at fair value through profit or loss investments to CSF for refinancing and supporting the Group's securities lending business (as at 31 December 2023: RMB15,990 million). As at 31 December 2024, the Group has pledged financial assets at fair value through profit or loss investments with a total fair value of RMB 136,355 million for the purpose of repurchase agreement business, bond lending business and derivative business (as at 31 December 2023: RMB142,687 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 31. Financial assets at fair value through profit or loss - continued Current - continued (b) Analysed as: - continued - 97 - As at 31 December 2024, the wealth management products held by the Group included approximately RMB 70 million of restricted products(as at 31 December 2023: RMB49 million). The restricted products are subscribed by the Group as the fund manager with a legally enforceable restriction on these products that prevents the Group to dispose of within the specified period. 32. Refundable deposits | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Deposits with stock exchanges | | | | - Hong Kong Securities Clearing Company Limited | 16,684 | 46,104 | | - China Securities Depository and Clearing Corporation | | | | Limited | 1,682,104 | 1,636,953 | | - Hong Kong Stock Exchange | 71,420 | 25,666 | | - Hong Kong Exchanges and Clearing Limited | 44,028 | 81,106 | | | 1,814,236 | 1,789,829 | | Deposits with futures and commodity exchanges | | | | - China Financial Futures Exchange | 10,401,127 | 15,040,738 | | - Shanghai Futures Exchange | 4,385,920 | 4,988,570 | | - Dalian Commodity Exchange | 3,098,634 | 3,837,356 | | - Zhengzhou Commodity Exchange | 2,698,887 | 3,054,381 | | - Shanghai International Energy Exchange | 965,577 | 1,109,516 | | - Other domestic commodity exchange | 537,815 | - | | - Overseas commodity exchange | 52,110 | 53,553 | | | 22,140,070 | 28,084,114 | | Deposits with other institutions | | | | - China Securities Finance Corporation Limited | 1,218 | 319,011 | | - Shanghai Clearing House | 814,963 | 1,230,694 | | - Shanghai Gold Exchange | 200 | 400 | | - Others financial institutions | 8,680,611 | 9,120,230 | | | 9,496,992 | 10,670,335 | | Total | 33,451,298 | 40,544,278 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 98 - 33. Deferred taxation (a) The components of deferred tax assets / (liabilities) recognised in the consolidated statements of financial position and the movements during the year are as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Changes in fair | | Changes in fair | | | | | | | | value of | Changes in fair | value of | | | | | | | | financial | value of | financial | Intangible | | | | | Provision for | Employee | instruments | derivative | instruments | assets | | | | | impairment | benefits | measured at | financial | measured at | recognised in | | | | Deferred tax arising from: | losses | payable | FVTPL | instruments | FVOCI | the acquisition | Others | Total | | As at 1 January 2024 | 712,946 | 1,593,378 | (735,042) | (206,845) | (30,969) | (1,193,296) | (1,398,113) | (1,257,941) | | Recognised in profit or loss | 46,919 | 255,301 | 20,766 | 379,681 | - | 11,359 | 690,502 | 1,404,528 | | Disposal of subsidiaries | (286) | (49,267) | 321 | - | - | 1,181,937 | (138,990) | 993,715 | | Reclassified as held for sale | - | (13,747) | 761 | - | - | - | 85 | (12,901) | | Recognised in reserves | 5,437 | - | - | - | (17,460) | - | - | (12,023) | | As at 31 December 2024 | 765,016 | 1,785,665 | (713,194) | 172,836 | (48,429) | - | (846,516) | 1,115,378 | | As at 1 January 2023(Restated) | 840,595 | 1,737,046 | (31,402) | (562,460) | (4,853) | (1,267,508) | (2,310,873) | (1,599,455) | | Recognised in profit or loss | (126,226) | (143,668) | (703,640) | 355,615 | - | 38,555 | 912,760 | 333,396 | | Acquisition of subsidiaries | - | - | - | - | - | 35,657 | - | 35,657 | | Recognised in reserves | (1,423) | - | - | - | (26,116) | - | - | (27,539) | | As at 31 December 2023 | 712,946 | 1,593,378 | (735,042) | (206,845) | (30,969) | (1,193,296) | (1,398,113) | (1,257,941) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 33. Deferred taxation - continued - 99 - (b) Reconciliation to the consolidated statements of financial position | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Net deferred tax assets recognised in the consolidated | | | | statement of financial position | 1,591,926 | 702,722 | | Net deferred tax liabilities recognised in the consolidated | | | | statement of financial position | (476,548) | (1,960,663) | | Total | 1,115,378 | (1,257,941) | (c) Deferred tax assets not recognised As at 31 December 2024 , in accordance with the accounting policy set out in Note 2(20)(ii), the Group has not recognised unused tax losses of RMB123 million (as at 31 December 2023: RMB877 million), as deferred tax assets, as it is not probable that future taxable profits against which the losses can be utilised will be available in the relevant tax jurisdiction and entity. Most of the tax losses will not expire under current tax legislation. 34. Other non-current assets (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Leasehold improvements and long-term deferred expenses | 240,951 | 311,789 | (b) The movements of leasehold improvements and long-term deferred expenses are as below: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 311,789 | 300,664 | | Additions | 17,440 | 68,385 | | Transfer in from property and equipment | 49,834 | 93,870 | | Amortisation | (136,768) | (151,130) | | Other decrease | (1,344) | - | | At the end of the year | 240,951 | 311,789 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 100 - 35. Accounts receivable (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Accounts receivable of: | | | | - Brokers, dealers and clearing house | 1,961,690 | 3,172,930 | | - Fee and commission | 1,610,627 | 1,469,110 | | - Return swap and OTC options | 872,561 | 2,894,747 | | - Settlement | 395,144 | 1,494,496 | | - Redemption of open-ended fund | 892,370 | 750,412 | | - Subscription receivable | 1,540 | 571 | | - Others | 33,525 | 76,953 | | Less: impairment losses | (180,224) | (115,458) | | Total | 5,587,233 | 9,743,761 | (b) Analysed by ageing: As at the end of the reporting period, the ageing analysis of accounts receivable, based on the trade date, is as follows: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Within 1 month | 4,036,738 | 6,666,521 | | 1 to 3 months | 125,483 | 663,523 | | Over 3 months | 1,425,012 | 2,413,717 | | Total | 5,587,233 | 9,743,761 | (c) Analysis of the movements of provision for impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 115,458 | 68,531 | | Charge for the year, net | 68,230 | 45,433 | | Other | (3,464) | 1,494 | | At the end of the year | 180,224 | 115,458 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 35. Accounts receivable - continued - 101 - (d) Accounts receivable that is not impaired Receivables that were neither past due nor impaired were relate to a wide range of customers for whom there was no recent history of default. The receivables from securities-backed lendings business are not included in accounts receivable. 36. Other receivables, prepayments and other current assets (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Inventory | 1,147,499 | 245,380 | | Prepayments | 427,547 | 698,314 | | Dividends receivable | 292,700 | 1,190 | | Deductable VAT | 221,388 | 82,049 | | Other receivables(1) | 210,805 | 338,953 | | Interest receivable(2) | 8,390 | 64,446 | | Others | 571,898 | 1,109,653 | | Total | 2,880,227 | 2,539,985 | The balance of others mainly represents prepaid tax and other current assets arising from normal course of business. As at 31 December 2024, the Group has pledged inventory with a total amount of RMB966 million for the purpose of derivative business (as at 31 December 2023: RMB125 million). (1) Other receivables: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Other receivables | 933,170 | 1,057,147 | | Less: impairment losses | (722,365) | (718,194) | | Total | 210,805 | 338,953 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 36. Other receivables and prepayments and other current assets - continued (a) Analysed by nature: - continued (1) Other receivables: - continued - 102 - Analysis of the movements of provision for other receivables impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 718,194 | 763,738 | | Charge for the year, net | 4,225 | 16,821 | | Written-off | (37) | (62,365) | | Other | (17) | - | | Total | 722,365 | 718,194 | (2) Interest receivable: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Interest receivable | 53,889 | 109,717 | | Less: impairment losses | (45,499) | (45,271) | | Total | 8,390 | 64,446 | Analysis of the movements of provision for impairment losses of interest receivable: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 45,271 | 38,175 | | Charge for the year, net | 228 | 7,096 | | At the end of the year | 45,499 | 45,271 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 103 - 37. Margin accounts receivable (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Individuals | 115,911,970 | 98,472,604 | | Institutions | 18,399,659 | 15,389,837 | | Less: impairment losses | (1,765,624) | (1,521,347) | | Total | 132,546,005 | 112,341,094 | (b) Analysis of the movements of provision for impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 1,521,347 | 1,526,356 | | Charge/(reversal) for the year, net | 242,700 | (6,325) | | Other | 1,577 | 1,316 | | At the end of the year | 1,765,624 | 1,521,347 | (c) The fair value of collateral for margin financing and securities lending business is analysed as follows: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Fair value of collateral: | | | | Equity securities | 329,724,873 | 290,376,975 | | Funds | 16,087,915 | 36,266,977 | | Cash | 9,636,977 | 8,535,007 | | Debt securities | 1,247,809 | 1,354,000 | | Total | 356,697,574 | 336,532,959 | The Group evaluates the collectability of receivable from margin clients based on management's assessment on the credit rating, collateral value and the past collection history of each margin client. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 37. Margin accounts receivable - continued - 104 - (d) Analysed by the stage of ECL of margin accounts receivable: | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | Lifetime ECL-not | Lifetime ECL- | | | | 12-month ECL | credit impaired | credit impaired | Total | | Amortised cost | 122,541,806 | 11,575,523 | 194,300 | 134,311,629 | | Impairment losses | (640,003) | (964,367) | (161,254) | (1,765,624) | | Carrying amount | 121,901,803 | 10,611,156 | 33,046 | 132,546,005 | | Collateral | 318,540,485 | 37,983,652 | 173,437 | 356,697,574 | | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | Lifetime ECL-not | Lifetime ECL- | | | | 12-month ECL | credit impaired | credit impaired | Total | | Amortised cost | 102,465,790 | 11,194,173 | 202,478 | 113,862,441 | | Impairment losses | (560,203) | (843,096) | (118,048) | (1,521,347) | | Carrying amount | 101,905,587 | 10,351,077 | 84,430 | 112,341,094 | | Collateral | 301,195,391 | 35,051,742 | 285,826 | 336,532,959 | 38. Derivative financial instruments | | | | | | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | Fair value | | | | Notional amount | Assets | Liabilities | | Interest rate derivatives | 1,460,855,341 | 697,426 | (814,414) | | Currency derivatives | 174,069,967 | 1,851,589 | (1,337,738) | | Equity derivatives | 204,986,804 | 6,262,677 | (5,899,597) | | Credit derivatives | 4,374,717 | 13,841 | (10,264) | | Commodity derivatives and others | 368,218,063 | 1,633,079 | (2,965,533) | | Total | 2,212,504,892 | 10,458,612 | (11,027,546) | | Less: settlement | | (467,487) | 83,761 | | Net position | | 9,991,125 | (10,943,785) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 38. Derivative financial instruments - continued - 105 - | | | | | | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | Fair value | | | | Notional amount | Assets | Liabilities | | Interest rate derivatives | 1,644,689,668 | 945,881 | (405,920) | | Currency derivatives | 186,761,759 | 295,866 | (1,474,728) | | Equity derivatives | 474,762,005 | 12,465,246 | (11,396,087) | | Credit derivatives | 10,873,787 | 30,174 | (5,684) | | Commodity derivatives and others | 417,780,134 | 3,319,877 | (3,915,670) | | Total | 2,734,867,353 | 17,057,044 | (17,198,089) | | Less: settlement | | (797,163) | 316,448 | | Net position | | 16,259,881 | (16,881,641) | | | | | | | | | | | Under the daily mark-to-market and settlement arrangement, any gains or losses of the Group's position in interest rate swap contracts settled in Shanghai Clearing House, stock index futures and treasury futures settled in China Financial Futures Exchange and certain commodity futures traded through futures companies, were settled daily and the corresponding receipts and payments were included in "clearing settlement funds". Accordingly, the net position of the above contracts was nil as at 31 December 2024 and 31 December 2023. Cash flow hedges The Group's cash flow hedges consist of cross currency swap contracts that are used to protect against exposures to variability of future cash flows. Among the above derivative financial instruments, those designated hedging instruments in cash flow hedges are set out below: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | | | Notional amount | | | | | Fair value | | | | | Over 3 months | Over 1 year | | | | | | | Within 3 | but within | but within | | | | | | | months | 1 year | 5 years | Over 5 years | Total | Assets | Liabilities | | Currency derivatives | - | 3,025,000 | - | - | 3,025,000 | - | (169,081) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | | | Notional amount | | | | | Fair value | | | | | Over 3 months | Over 1 year | | | | | | | Within 3 | but within | but within | | | | | | | months | 1 year | 5 years | Over 5 years | Total | Assets | Liabilities | | Currency derivatives | - | - | 3,025,000 | - | 3,025,000 | - | (32,763) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 38. Derivative financial instruments - continued Cash flow hedges - continued - 106 - Details of the Group's hedged risk exposures in cash flow hedges and the corresponding effect on equities are as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | | | Effect of hedging | Accumulated effect | | | | | | instruments on other | of hedging | | | | | | comprehensive | instruments on other | Line items in the | | | Carrying amount of hedged items | | income | comprehensive | statement of | | | Assets | Liabilities | during the year | income | financial position | | Bonds | - | (3,048,491) | (83,916) | (44,844) | Long-term bonds | | | | | | | | | --- | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | | | Effect of hedging | Accumulated effect | | | | | | instruments on other | of hedging | | | | | | comprehensive | instruments on other | Line items in the | | | Carrying amount of hedged items | | income | comprehensive | statement of | | | Assets | Liabilities | during the year | income | financial position | | Bonds | - | (3,044,890) | (3,571) | 39,072 | Long-term bonds | During the year ended 31 December 2024, the net losses from the hedging instruments recognised in other comprehensive income amounted to RMB 83,916 thousand (During the year ended 31 December 2023: the net losses amounted to RMB3,571 thousand). There was no hedge ineffectiveness for the year ended 31 December 2024 and 2023. 39. Clearing settlement funds | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Deposits with stock exchanges | | | | - China Securities Depository and Clearing Corporation | | | | Limited | 6,654,049 | 5,746,776 | | - Hong Kong Securities Clearing Company Limited | 120,296 | 32,488 | | Deposits with other institutions | 4,362,413 | 3,350,002 | | Total | 11,136,758 | 9,129,266 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 107 - 40. Cash held on behalf of brokerage clients The Group maintains segregated deposit accounts with banks and authorised institutions to hold clients' monies arising from its normal course of business. The Group has classified the brokerage clients' monies as cash held on behalf of brokerage clients under the current assets section of the consolidated statement of financial position, and recognised the corresponding accounts payable to the respective brokerage clients on the grounds that they are liable for any loss or misappropriation of their brokerage clients' monies. In the Mainland China, the use of cash held on behalf of brokerage clients for their transaction and settlement funds is restricted and governed by the relevant third-party deposit regulations issued by the CSRC. In Hong Kong, the use of cash held on behalf of brokerage clients is restricted and governed by the Securities and Futures (Client Money) Rules under the Securities and Futures Ordinance. 41. Cash and Bank balances (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Cash on hand | 186 | 189 | | Bank balances | 39,521,623 | 46,296,689 | | Less: impairment losses | (351) | (512) | | Total | 39,521,458 | 46,296,366 | Bank balances mainly comprise time and demand deposits which bear interest at the prevailing market rates. (b) Analysis of the movements of provision for impairment losses: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | At the beginning of the year | 512 | 833 | | Reversal of impairment for the year | (190) | (290) | | Other Changes | 29 | (31) | | At the end of the year | 351 | 512 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 108 - 42. Cash and cash equivalents (a) Cash and cash equivalents comprise: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Cash on hand | 186 | 189 | | Bank balances | 39,425,490 | 46,203,098 | | Clearing settlement funds | 11,136,758 | 9,129,266 | | Financial assets held under resale agreements within 3 | | | | months original maturity | 6,538,630 | 7,352,535 | | Bond investment within 3 months original maturity | 1,279,718 | 1,436,707 | | Less: restricted bank deposits and bank deposits with | | | | original maturity of more than three months | (2,347,573) | (4,291,466) | | Total | 56,033,209 | 59,830,329 | As at 31 December 2024, the total amount of bank balances included cash and bank balances classified as held for sale amounting to RMB10,109 thousand (as at 31 December 2023: nil). The restricted bank deposits mainly include deposits reserved for VAT payable of asset management plans, minimum liquid capital restriction deposits and risk reserve deposits. (b) Reconciliation of liabilities arising from financing activities: The following table details changes in the Group's liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the consolidated statement of cash flows as cash flows from financing activities. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 42. Cash and cash equivalents - continued (b) Reconciliation of liabilities arising from financing activities: - continued - 109 - DRAFT FOR DISCUSSION | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Dividends payable | | | | | | | | | to ordinary | | | | | | | | | shareholders and | | | | Short-term debt | | Short-term | | | perpetural | | | | instruments | Long-term bonds | bank loans | Long-term bank loans | Lease liabilities | subordinated bonds | Total | | At 1 January 2024 | 25,475,507 | 159,816,001 | 11,478,573 | 647,052 | 1,468,161 | 145,230 | 199,030,524 | | Changes from financing cash flows | | | | | | | | | Proceeds from issuance | 36,075,820 | - | 3,355,750 | - | - | - | 39,431,570 | | Repayment of borrowings | (31,906,954) | (44,310,354) | (11,377,260) | (642,200) | - | - | (88,236,768) | | Interest paid | (1,582,413) | (4,610,987) | (314,768) | (44,278) | - | - | (6,552,446) | | Payment of lease liabilities | - | - | - | - | (623,242) | - | (623,242) | | Dividend paid | - | - | - | - | - | (6,280,608) | (6,280,608) | | Total changes from financing cash | | | | | | | | | flows | 2,586,453 | (48,921,341) | (8,336,278) | (686,478) | (623,242) | (6,280,608) | (62,261,494) | | Other changes | | | | | | | | | Interest expenses | 525,412 | 4,752,586 | 220,685 | 34,669 | 50,632 | - | 5,583,984 | | New leases | - | - | - | - | 346,016 | - | 346,016 | | Dividends declared | - | - | - | - | - | 6,229,608 | 6,229,608 | | Exchange differences | 265,567 | (188,429) | - | 4,757 | - | - | 81,895 | | Others | - | - | - | - | (226,952) | - | (226,952) | | Total other changes | 790,979 | 4,564,157 | 220,685 | 39,426 | 169,696 | 6,229,608 | 12,014,551 | | At 31 December 2024 | 28,852,939 | 115,458,817 | 3,362,980 | - | 1,014,615 | 94,230 | 148,783,581 | ![]() DRAFT FOR HUATAI SECURITIES CO., LTD. DISCUSSION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 42. Cash and cash equivalents - continued (b) Reconciliation of liabilities arising from financing activities: - continued - 110 - | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | Dividends payable | | | | | | | | | to ordinary | | | | | | | | | shareholders and | | | | Short-term debt | | Short-term | | | perpetural | | | | instruments | Long-term bonds | bank loans | Long-term bank loans | Lease liabilities | subordinated bonds | Total | | At 1 January 2023 | 25,772,604 | 139,419,338 | 7,997,434 | 804,903 | 1,518,585 | 94,230 | 175,607,094 | | Changes from financing cash flows | | | | | | | | | Proceeds from issuance | 43,556,056 | 48,241,623 | 11,377,260 | - | - | - | 103,174,939 | | Repayment of borrowings | (39,227,936) | (28,630,617) | (7,948,720) | (175,592) | - | - | (75,982,865) | | Interest paid | (5,330,291) | (4,362,411) | (545,002) | (53,487) | - | - | (10,291,191) | | Payment of lease liabilities | - | - | - | - | (662,201) | - | (662,201) | | Dividend paid | - | - | - | - | - | (4,769,463) | (4,769,463) | | Total changes from financing cash | | | | | | | | | flows | (1,002,171) | 15,248,595 | 2,883,538 | (229,079) | (662,201) | (4,769,463) | 11,469,219 | | Other changes | | | | | | | | | Interest expenses | 704,782 | 4,876,439 | 597,601 | 59,122 | 63,271 | - | 6,301,215 | | New leases | - | - | - | - | 548,506 | - | 548,506 | | Dividends declared | - | - | - | - | - | 4,820,463 | 4,820,463 | | Exchange differences | 292 | 271,629 | - | 12,106 | - | - | 284,027 | | Total other changes | 705,074 | 5,148,068 | 597,601 | 71,228 | 611,777 | 4,820,463 | 11,954,211 | | At 31 December 2023 | 25,475,507 | 159,816,001 | 11,478,573 | 647,052 | 1,468,161 | 145,230 | 199,030,524 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 111 - 43. Short-term bank loans | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Credit loans | 2,983,239 | 10,549,181 | | Pledged loans | 379,741 | 929,392 | | Total | 3,362,980 | 11,478,573 | As of 31 December 2024, the interest rates for short-term loans were in the range of 3.30% - 6.30% per annum (as of 31 December 2023: 3.90% - 6.84% per annum). 44. Short-term debt instruments issued As at 31 December 2024 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 23 HUATAI S3 | RMB3,000,000 | 13/11/2023 | 13/9/2024 | RMB3,000,000 | 2.67% | | 23 HUATAI S4 | RMB4,000,000 | 20/11/2023 | 20/9/2024 | RMB4,000,000 | 2.65% | | 23 HUATAI S5 | RMB2,000,000 | 8/12/2023 | 8/7/2024 | RMB2,000,000 | 2.81% | | 23 HUATAI S6 | RMB5,000,000 | 19/12/2023 | 19/3/2024 | RMB5,000,000 | 2.75% | | 24 HUATAI S1 | RMB2,000,000 | 18/10/2024 | 18/3/2025 | RMB2,000,000 | 1.96% | | 24 HUATAI S2 | RMB4,800,000 | 13/11/2024 | 13/5/2025 | RMB4,800,000 | 1.90% | | 24 HUATAI S3 | RMB1,000,000 | 13/11/2024 | 13/11/2025 | RMB1,000,000 | 1.92% | | 24 HUATAI S4 | RMB6,000,000 | 10/12/2024 | 10/6/2025 | RMB6,000,000 | 1.75% | | 24 HUATAI S6 | RMB3,000,000 | 24/12/2024 | 24/8/2025 | RMB3,000,000 | 1.67% | | HUATAI B2401a | USD25,800 | 13/1/2023 | 12/1/2024 | USD25,800 | 5.00% | | HUATAI B2401b | USD20,000 | 19/1/2023 | 19/1/2024 | USD20,000 | 5.75% | | HUATAI B2402a | USD15,000 | 3/2/2023 | 2/2/2024 | USD15,000 | 0.00% | | HUATAI B2402b | USD20,600 | 6/2/2023 | 5/2/2024 | USD20,600 | 0.00% | | HUATAI B2403a | USD30,000 | 27/3/2023 | 27/3/2024 | USD30,000 | 5.60% | | HUATAI B2405b | HKD475,000 | 5/5/2023 | 3/5/2024 | HKD475,000 | 4.60% | | HUATAI B2406c | USD50,000 | 13/6/2023 | 13/6/2024 | USD50,000 | 5.95% | | HUATAI B2401c | USD27,500 | 18/7/2023 | 18/1/2024 | USD27,500 | 6.17% | | HUATAI B2407a | USD11,000 | 19/7/2023 | 19/7/2024 | USD11,000 | 6.17% | | HUATAI B2401d | HKD100,000 | 19/7/2023 | 19/1/2024 | HKD100,000 | 5.36% | | HUATAI B2401e | USD20,000 | 24/7/2023 | 24/1/2024 | USD20,000 | 6.07% | | HUATAI B2407b | USD19,000 | 27/7/2023 | 26/7/2024 | USD19,000 | 0.00% | | HUATAI B2401h | USD15,000 | 31/7/2023 | 31/1/2024 | USD15,000 | 6.15% | | HUATAI B2401i | HKD100,000 | 31/7/2023 | 31/1/2024 | HKD100,000 | 5.55% | | HUATAI B2407c | USD10,000 | 2/8/2023 | 31/7/2024 | USD10,000 | SOFR + 0.95% | | HUATAI B2408a | USD15,000 | 3/8/2023 | 1/8/2024 | USD15,000 | SOFR + 0.95% | | HUATAI B2408b | USD15,000 | 4/8/2023 | 2/8/2024 | USD15,000 | SOFR + 0.95% | | HUATAI B2408c | USD10,000 | 4/8/2023 | 2/8/2024 | USD10,000 | SOFR + 0.95% | | HUATAI B2408d | USD15,000 | 10/8/2023 | 9/8/2024 | USD15,000 | 6.05% | | HUATAI B2402j | USD30,000 | 18/8/2023 | 21/2/2024 | USD30,000 | 6.14% | | HUATAI B2402k | HKD29,000 | 22/8/2023 | 22/2/2024 | HKD29,000 | 5.50% | | HUATAI B2402l | USD5,800 | 22/8/2023 | 22/2/2024 | USD5,800 | 6.10% | | HUATAI B2409a | USD65,000 | 12/9/2023 | 11/9/2024 | USD65,000 | 6.00% | | HUATAI B2403b | USD18,050 | 22/9/2023 | 22/3/2024 | USD18,050 | 0.00% | | HUATAI B2409b | USD13,150 | 22/9/2023 | 20/9/2024 | USD13,150 | 0.00% | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2024 - continued - 112 - | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | HUATAI B2403c | USD60,000 | 27/9/2023 | 26/3/2024 | USD60,000 | 6.00% | | HUATAI B2409c | RMB400,000 | 28/9/2023 | 24/9/2024 | RMB400,000 | 3.78% | | HUATAI B2404 | USD10,000 | 17/10/2023 | 17/4/2024 | USD10,000 | 6.31% | | HUATAI B2410a | RMB650,000 | 20/10/2023 | 16/10/2024 | RMB650,000 | 3.80% | | HUATAI B2401f | USD16,750 | 25/10/2023 | 25/1/2024 | USD16,750 | 0.00% | | HUATAI B2405c | USD14,500 | 25/10/2023 | 2/5/2024 | USD14,500 | 0.00% | | HUATAI B2407d | USD15,000 | 27/10/2023 | 27/7/2024 | USD15,000 | 6.36% | | HUATAI B2401g | USD10,000 | 27/10/2023 | 27/1/2024 | USD10,000 | 6.27% | | HUATAI B2407e | USD10,000 | 27/10/2023 | 27/7/2024 | USD10,000 | 6.36% | | HUATAI B2411a | USD30,000 | 6/11/2023 | 4/11/2024 | USD30,000 | 0.00% | | HUATAI B2402c | USD18,000 | 7/11/2023 | 7/2/2024 | USD18,000 | 6.30% | | HUATAI B2402g | USD17,000 | 9/11/2023 | 15/2/2024 | USD17,000 | 6.30% | | HUATAI B2402h | USD15,000 | 10/11/2023 | 15/2/2024 | USD15,000 | 6.30% | | HUATAI B2402e | USD10,000 | 10/11/2023 | 9/2/2024 | USD10,000 | 5.87% | | HUATAI B2411b | USD35,000 | 13/11/2023 | 8/11/2024 | USD35,000 | 0.00% | | HUATAI B2402d | USD18,200 | 13/11/2023 | 8/2/2024 | USD18,200 | 0.00% | | HUATAI B2402f | USD20,000 | 14/11/2023 | 14/2/2024 | USD20,000 | 0.00% | | HUATAI B2402i | USD15,460 | 15/11/2023 | 15/2/2024 | USD15,460 | 0.00% | | HUATAI B2405d | USD10,000 | 21/11/2023 | 21/5/2024 | USD10,000 | 6.46% | | HUATAI B2405e | HKD200,000 | 28/11/2023 | 28/5/2024 | HKD200,000 | 6.04% | | HUATAI B2409d | USD95,000 | 6/12/2023 | 6/9/2024 | USD95,000 | 6.00% | | HUATAI B2406d | USD25,000 | 7/12/2023 | 7/6/2024 | USD25,000 | 6.40% | | HUATAI B2406e | USD10,000 | 7/12/2023 | 7/6/2024 | USD10,000 | 6.36% | | HUATAI B2403d | USD40,000 | 8/12/2023 | 8/3/2024 | USD40,000 | 0.00% | | HUATAI B2406f | USD20,000 | 8/12/2023 | 7/6/2024 | USD20,000 | 0.00% | | HUATAI B2407f | USD35,000 | 22/1/2024 | 22/7/2024 | USD35,000 | 5.85% | | HUATAI B2407g | HKD100,000 | 22/1/2024 | 22/7/2024 | HKD100,000 | 5.09% | | HUATAI B2407h | USD60,000 | 25/1/2024 | 25/7/2024 | USD60,000 | 0.00% | | HUATAI B2405f | USD35,000 | 26/1/2024 | 14/5/2024 | USD35,000 | 0.00% | | HUATAI B2405g | RMB100,000 | 1/2/2024 | 10/5/2024 | RMB100,000 | 0.00% | | HUATAI B2405h | HKD81,000 | 2/2/2024 | 16/5/2024 | HKD81,000 | 5.04% | | HUATAI B2405i | USD10,000 | 6/2/2024 | 21/5/2024 | USD10,000 | 5.99% | | HUATAI B2405j | RMB300,000 | 6/2/2024 | 21/5/2024 | RMB300,000 | 3.00% | | HUATAI B2406g | USD20,000 | 7/2/2024 | 7/6/2024 | USD20,000 | 5.97% | | HUATAI B2408e | USD10,000 | 7/2/2024 | 7/8/2024 | USD10,000 | 5.89% | | HUATAI B2408f | RMB200,000 | 8/2/2024 | 8/8/2024 | RMB200,000 | 3.10% | | HUATAI B2408g | USD34,300 | 15/2/2024 | 15/8/2024 | USD34,300 | 5.96% | | HUATAI B2408h | USD20,000 | 15/2/2024 | 15/8/2024 | USD20,000 | 5.85% | | HUATAI B2405k | USD10,000 | 16/2/2024 | 30/5/2024 | USD10,000 | 5.97% | | HUATAI B2411c | USD50,000 | 9/5/2024 | 7/11/2024 | USD50,000 | 6.00% | | HUATAI B2411d | USD50,000 | 10/5/2024 | 8/11/2024 | USD50,000 | 6.00% | | HUATAI B2409e | USD20,000 | 6/6/2024 | 6/9/2024 | USD20,000 | 5.00% | | HUATAI B2409f | USD30,000 | 6/6/2024 | 6/9/2024 | USD30,000 | 5.85% | | HUATAI B2412a | USD42,000 | 11/6/2024 | 11/12/2024 | USD42,000 | 5.81% | | HUATAI B2410b | USD30,000 | 11/7/2024 | 11/10/2024 | USD30,000 | 5.72% | | HUATAI B2410c | USD30,000 | 15/7/2024 | 15/10/2024 | USD30,000 | 5.71% | | Structured notes (1) | RMB12,788,986 | Note (1) | Note (1) | RMB12,788,986 | Note (1) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2024 - continued - 113 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | | 1 January | | | 31 December | | Name | 2024 | Increase | Decrease | 2024 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 23 HUATAI S3 | 3,010,680 | 53,400 | (3,064,080) | - | | 23 HUATAI S4 | 4,012,072 | 70,667 | (4,082,739) | - | | 23 HUATAI S5 | 2,003,626 | 28,100 | (2,031,726) | - | | 23 HUATAI S6 | 5,004,805 | 22,917 | (5,027,722) | - | | 24 HUATAI S1 | - | 2,008,009 | - | 2,008,009 | | 24 HUATAI S2 | - | 4,812,160 | - | 4,812,160 | | 24 HUATAI S3 | - | 1,002,560 | - | 1,002,560 | | 24 HUATAI S4 | - | 6,006,210 | - | 6,006,210 | | 24 HUATAI S6 | - | 3,001,077 | - | 3,001,077 | | HUATAI B2401a | 191,563 | 3,331 | (194,894) | - | | HUATAI B2401b | 149,401 | 2,678 | (152,079) | - | | HUATAI B2402a | 105,865 | 1,992 | (107,857) | - | | HUATAI B2402b | 145,320 | 2,804 | (148,124) | - | | HUATAI B2403a | 215,457 | 6,365 | (221,822) | - | | HUATAI B2405b | 442,864 | 14,550 | (457,414) | - | | HUATAI B2406c | 365,627 | 15,646 | (381,273) | - | | HUATAI B2401c | 200,207 | 3,767 | (203,974) | - | | HUATAI B2407a | 80,069 | 3,907 | (83,976) | - | | HUATAI B2401d | 92,848 | 2,258 | (95,106) | - | | HUATAI B2401e | 143,770 | 2,222 | (145,992) | - | | HUATAI B2407b | 130,051 | 6,568 | (136,619) | - | | HUATAI B2401h | 108,958 | 2,216 | (111,174) | - | | HUATAI B2401i | 92,760 | 2,435 | (95,195) | - | | HUATAI B2407c | 71,515 | 3,797 | (75,312) | - | | HUATAI B2408a | 107,254 | 5,715 | (112,969) | - | | HUATAI B2408b | 107,235 | 5,696 | (112,931) | - | | HUATAI B2408c | 71,490 | 3,797 | (75,287) | - | | HUATAI B2408d | 108,645 | 5,720 | (114,365) | - | | HUATAI B2402j | 217,250 | 5,198 | (222,448) | - | | HUATAI B2402k | 491 | 27,109 | (27,600) | - | | HUATAI B2402l | 851 | 42,154 | (43,005) | - | | HUATAI B2409a | 467,832 | 27,983 | (495,815) | - | | HUATAI B2403b | 126,129 | 3,659 | (129,788) | - | | HUATAI B2409b | 89,161 | 5,394 | (94,555) | - | | HUATAI B2403c | 431,221 | 13,080 | (444,301) | - | | HUATAI B2409c | 403,780 | 11,216 | (414,996) | - | | HUATAI B2404 | 71,719 | 2,455 | (74,174) | - | | HUATAI B2410a | 654,445 | 20,052 | (674,497) | - | | HUATAI B2401f | 118,128 | 2,313 | (120,441) | - | | HUATAI B2405c | 100,618 | 3,644 | (104,262) | - | | HUATAI B2407d | 107,402 | 5,600 | (113,002) | - | | HUATAI B2401g | 71,590 | 1,442 | (73,032) | - | | HUATAI B2407e | 71,601 | 3,734 | (75,335) | - | | HUATAI B2411a | 201,570 | 14,145 | (215,715) | - | | HUATAI B2402c | 128,623 | 2,844 | (131,467) | - | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2024 - continued - 114 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | | 1 January | | | 31 December | | Name | 2024 | Increase | Decrease | 2024 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | HUATAI B2402g | 121,435 | 2,857 | (124,292) | - | | HUATAI B2402h | 107,130 | 2,521 | (109,651) | - | | HUATAI B2402e | 71,365 | 1,583 | (72,948) | - | | HUATAI B2411b | 235,040 | 16,627 | (251,667) | - | | HUATAI B2402d | 128,016 | 2,851 | (130,867) | - | | HUATAI B2402f | 140,531 | 3,279 | (143,810) | - | | HUATAI B2402i | 108,628 | 2,537 | (111,165) | - | | HUATAI B2405d | 71,297 | 2,930 | (74,227) | - | | HUATAI B2405e | 182,247 | 8,538 | (190,785) | - | | HUATAI B2409d | 673,468 | 40,368 | (713,836) | - | | HUATAI B2406d | 177,726 | 7,789 | (185,515) | - | | HUATAI B2406e | 71,086 | 3,144 | (74,230) | - | | HUATAI B2403d | 279,875 | 7,745 | (287,620) | - | | HUATAI B2406f | 137,712 | 6,098 | (143,810) | - | | HUATAI B2407f | - | 259,029 | (259,029) | - | | HUATAI B2407g | - | 94,954 | (94,954) | - | | HUATAI B2407h | - | 431,430 | (431,430) | - | | HUATAI B2405f | - | 251,667 | (251,667) | - | | HUATAI B2405g | - | 100,000 | (100,000) | - | | HUATAI B2405h | - | 76,086 | (76,086) | - | | HUATAI B2405i | - | 73,161 | (73,161) | - | | HUATAI B2405j | - | 302,589 | (302,589) | - | | HUATAI B2406g | - | 146,672 | (146,672) | - | | HUATAI B2408e | - | 74,023 | (74,023) | - | | HUATAI B2408f | - | 203,092 | (203,092) | - | | HUATAI B2408g | - | 254,065 | (254,065) | - | | HUATAI B2408h | - | 148,016 | (148,016) | - | | HUATAI B2405k | - | 73,144 | (73,144) | - | | HUATAI B2411c | - | 370,192 | (370,192) | - | | HUATAI B2411d | - | 370,249 | (370,249) | - | | HUATAI B2409e | - | 145,647 | (145,647) | - | | HUATAI B2409f | - | 218,871 | (218,871) | - | | HUATAI B2412a | - | 310,774 | (310,774) | - | | HUATAI B2410b | - | 218,800 | (218,800) | - | | HUATAI B2410c | - | 218,862 | (218,862) | - | | Structured notes (1) | 2,745,458 | 15,124,024 | (5,846,559) | 12,022,923 | | Total | 25,475,507 | 36,866,800 | (33,489,368) | 28,852,939 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued - 115 - As at 31 December 2023 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 22 HUATAI F1 | RMB4,000,000 | 17/1/2022 | 17/1/2024 | RMB4,000,000 | 2.75% | | 22 HUATAI S2 | RMB5,000,000 | 19/8/2022 | 17/2/2023 | RMB5,000,000 | 1.78% | | 23 HUATAI S1 | RMB5,000,000 | 17/3/2023 | 15/9/2023 | RMB5,000,000 | 2.65% | | 23 HUATAI S2 | RMB5,000,000 | 23/3/2023 | 25/10/2023 | RMB5,000,000 | 2.65% | | 23 HUATAI S3 | RMB3,000,000 | 13/11/2023 | 13/9/2024 | RMB3,000,000 | 2.67% | | 23 HUATAI S4 | RMB4,000,000 | 20/11/2023 | 20/9/2024 | RMB4,000,000 | 2.65% | | 23 HUATAI S5 | RMB2,000,000 | 8/12/2023 | 8/7/2024 | RMB2,000,000 | 2.81% | | 23 HUATAI S6 | RMB5,000,000 | 19/12/2023 | 19/3/2024 | RMB5,000,000 | 2.75% | | HUATAI B2304a | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% | | HUATAI B2304b | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% | | HUATAI B2304c | USD100,000 | 7/4/2022 | 6/4/2023 | USD100,000 | 1.50% | | HUATAI B2302a | USD50,000 | 27/5/2022 | 28/2/2023 | USD50,000 | 2.81% | | HUATAI B2302b | HKD300,000 | 13/5/2022 | 13/2/2023 | HKD300,000 | 2.15% | | HUATAI B2305a | USD50,000 | 27/5/2022 | 25/5/2023 | USD50,000 | 2.85% | | HUATAI B2306 | USD100,000 | 10/6/2022 | 8/6/2023 | USD100,000 | 2.86% | | HUATAI B2308 | USD15,000 | 10/8/2022 | 9/8/2023 | USD15,000 | 3.00% | | HUATAI B2302d | USD18,000 | 14/11/2022 | 14/2/2023 | USD18,000 | 5.75% | | HUATAI B2302e | HKD300,000 | 14/11/2022 | 14/2/2023 | HKD300,000 | 5.75% | | HUATAI B2302f | USD10,700 | 16/11/2022 | 16/2/2023 | USD10,700 | 0.00% | | HUATAI B2302g | HKD496,000 | 16/11/2022 | 16/2/2023 | HKD496,000 | 5.50% | | HUATAI B2302h | USD5,499 | 18/11/2022 | 17/2/2023 | USD5,499 | 0.00% | | HUATAI B2302i | HKD23,390 | 18/11/2022 | 17/2/2023 | HKD23,390 | 0.00% | | HUATAI B2302j | HKD150,000 | 22/11/2022 | 22/2/2023 | HKD150,000 | 0.00% | | HUATAI B2311 | USD40,000 | 23/11/2022 | 22/11/2023 | USD40,000 | 6.05% | | HUATAI B2302k | USD8,580 | 25/11/2022 | 24/2/2023 | USD8,580 | 0.00% | | HUATAI B2302l | USD100,000 | 29/11/2022 | 27/2/2023 | USD100,000 | 0.00% | | HUATAI B2302m | USD50,000 | 29/11/2022 | 27/2/2023 | USD50,000 | 0.00% | | HUATAI B2303a | USD4,839 | 1/12/2022 | 1/3/2023 | USD4,839 | 0.00% | | HUATAI B2303b | HKD14,000 | 1/12/2022 | 1/3/2023 | HKD14,000 | 0.00% | | HUATAI B2303c | USD10,000 | 6/12/2022 | 3/3/2023 | USD10,000 | 5.70% | | HUATAI B2312 | RMB440,000 | 13/12/2022 | 12/12/2023 | RMB440,000 | 3.49% | | HUATAI B2306b | USD62,000 | 15/12/2022 | 15/6/2023 | USD62,000 | 0.00% | | HUATAI B2306c | USD32,300 | 29/12/2022 | 29/6/2023 | USD32,300 | 5.60% | | HUATAI B2304d | USD30,000 | 13/1/2023 | 13/4/2023 | USD30,000 | 5.00% | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2023 - continued - 116 - | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | HUATAI B2401a | USD25,800 | 13/1/2023 | 12/1/2024 | USD25,800 | 5.00% | | HUATAI B2304e | HKD62,000 | 13/1/2023 | 13/4/2023 | HKD62,000 | 5.34% | | HUATAI B2304f | USD20,000 | 17/1/2023 | 17/4/2023 | USD20,000 | 0.00% | | HUATAI B2304g | USD20,000 | 17/1/2023 | 18/4/2023 | USD20,000 | 5.25% | | HUATAI B2307d | USD20,000 | 17/1/2023 | 18/7/2023 | USD20,000 | 5.00% | | HUATAI B2312a | USD60,000 | 17/1/2023 | 22/12/2023 | USD60,000 | 5.00% | | HUATAI B2307e | HKD200,000 | 17/1/2023 | 18/7/2023 | HKD200,000 | 5.14% | | HUATAI B2401b | USD20,000 | 19/1/2023 | 19/1/2024 | USD20,000 | 5.75% | | HUATAI B2310 | USD50,000 | 19/1/2023 | 19/10/2023 | USD50,000 | 0.00% | | HUATAI B2402a | USD15,000 | 3/2/2023 | 2/2/2024 | USD15,000 | 0.00% | | HUATAI B2308a | USD10,000 | 6/2/2023 | 4/8/2023 | USD10,000 | 5.50% | | HUATAI B2308b | USD47,000 | 6/2/2023 | 7/8/2023 | USD47,000 | 0.00% | | HUATAI B2402b | USD20,600 | 6/2/2023 | 5/2/2024 | USD20,600 | 0.00% | | HUATAI B2308c | USD20,000 | 8/2/2023 | 8/8/2023 | USD20,000 | 5.55% | | HUATAI B2308d | USD100,000 | 9/2/2023 | 9/8/2023 | USD100,000 | 0.00% | | HUATAI B2305b | USD6,600 | 10/2/2023 | 10/5/2023 | USD6,600 | 0.00% | | HUATAI B2308e | USD15,000 | 10/2/2023 | 10/8/2023 | USD15,000 | 0.00% | | HUATAI B2305c | USD13,350 | 17/2/2023 | 17/5/2023 | USD13,350 | 0.00% | | HUATAI B2308h | USD30,000 | 17/2/2023 | 17/8/2023 | USD30,000 | 5.46% | | HUATAI B2305d | USD15,000 | 21/2/2023 | 23/5/2023 | USD15,000 | 5.28% | | HUATAI B2308i | USD100,000 | 21/2/2023 | 18/8/2023 | USD100,000 | 0.00% | | HUATAI B2305e | HKD200,000 | 21/2/2023 | 23/5/2023 | HKD200,000 | 3.82% | | HUATAI B2308f | USD50,000 | 22/2/2023 | 15/8/2023 | USD50,000 | 5.00% | | HUATAI B2306a | USD11,820 | 8/3/2023 | 8/6/2023 | USD11,820 | 0.00% | | HUATAI B2306d | USD20,000 | 10/3/2023 | 9/6/2023 | USD20,000 | 0.00% | | HUATAI B2309b | USD100,000 | 10/3/2023 | 12/9/2023 | USD100,000 | 0.00% | | HUATAI B2403a | USD30,000 | 27/3/2023 | 27/3/2024 | USD30,000 | 5.60% | | HUATAI B2307f | USD17,000 | 19/4/2023 | 19/7/2023 | USD17,000 | 0.00% | | HUATAI B2307g | USD6,300 | 20/4/2023 | 20/7/2023 | USD6,300 | 0.00% | | HUATAI B2307h | USD18,000 | 20/4/2023 | 20/7/2023 | USD18,000 | 0.00% | | HUATAI B2307i | USD20,000 | 24/4/2023 | 21/7/2023 | USD20,000 | 5.55% | | HUATAI B2311a | HKD51,000 | 2/5/2023 | 2/11/2023 | HKD51,000 | 0.00% | | HUATAI B2405b | HKD475,000 | 5/5/2023 | 3/5/2024 | HKD475,000 | 4.60% | | HUATAI B2307a | USD10,000 | 8/5/2023 | 7/7/2023 | USD10,000 | 5.55% | | HUATAI B2311b | USD20,000 | 9/5/2023 | 9/11/2023 | USD20,000 | 5.55% | | HUATAI B2307b | USD40,000 | 10/5/2023 | 11/7/2023 | USD40,000 | 5.55% | | HUATAI B2307c | USD12,500 | 16/5/2023 | 14/7/2023 | USD12,500 | 5.55% | | HUATAI B2311c | USD10,000 | 16/5/2023 | 16/11/2023 | USD10,000 | 5.66% | | HUATAI B2311d | USD5,150 | 19/5/2023 | 17/11/2023 | USD5,150 | 0.00% | | HUATAI B2307j | USD25,427 | 19/5/2023 | 21/7/2023 | USD25,427 | 5.00% | | HUATAI B2311g | HKD200,000 | 23/5/2023 | 24/11/2023 | HKD200,000 | 4.70% | | HUATAI B2307k | HKD100,000 | 29/5/2023 | 28/7/2023 | HKD100,000 | 4.85% | | HUATAI B2307l | USD15,000 | 29/5/2023 | 28/7/2023 | USD15,000 | 5.73% | | HUATAI B2309a | USD15,000 | 6/6/2023 | 6/9/2023 | USD15,000 | 5.88% | | HUATAI B2406c | USD50,000 | 13/6/2023 | 13/6/2024 | USD50,000 | 5.95% | | HUATAI B2308g | HKD250,000 | 14/6/2023 | 15/8/2023 | HKD250,000 | 4.65% | | HUATAI B2309c | USD26,300 | 15/6/2023 | 15/9/2023 | USD26,300 | 0.00% | | HUATAI B2311f | USD39,000 | 23/6/2023 | 22/11/2023 | USD39,000 | 0.00% | | HUATAI B2311h | USD10,500 | 26/6/2023 | 27/11/2023 | USD10,500 | 0.00% | | HUATAI B2309d | USD10,000 | 27/6/2023 | 27/9/2023 | USD10,000 | 5.50% | | HUATAI B2311i | USD25,500 | 30/6/2023 | 30/11/2023 | USD25,500 | 5.50% | | HUATAI B2310a | USD46,600 | 7/7/2023 | 11/10/2023 | USD46,600 | 5.50% | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2023 - continued - 117 - | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | HUATAI B2401c | USD27,500 | 18/7/2023 | 18/1/2024 | USD27,500 | 6.17% | | HUATAI B2310b | USD10,000 | 19/7/2023 | 19/10/2023 | USD10,000 | 5.80% | | HUATAI B2407a | USD11,000 | 19/7/2023 | 19/7/2024 | USD11,000 | 6.17% | | HUATAI B2401d | HKD100,000 | 19/7/2023 | 19/1/2024 | HKD100,000 | 5.36% | | HUATAI B2401e | USD20,000 | 24/7/2023 | 24/1/2024 | USD20,000 | 6.07% | | HUATAI B2310c | HKD200,000 | 26/7/2023 | 26/10/2023 | HKD200,000 | 5.36% | | HUATAI B2407b | USD19,000 | 27/7/2023 | 26/7/2024 | USD19,000 | 0.00% | | HUATAI B2401h | USD15,000 | 31/7/2023 | 31/1/2024 | USD15,000 | 6.15% | | HUATAI B2401i | HKD100,000 | 31/7/2023 | 31/1/2024 | HKD100,000 | 5.55% | | HUATAI B2311j | USD30,000 | 1/8/2023 | 1/11/2023 | USD30,000 | 6.03% | | HUATAI B2407c | USD10,000 | 2/8/2023 | 31/7/2024 | USD10,000 | SOFR+0.95% | | HUATAI B2408a | USD15,000 | 3/8/2023 | 1/8/2024 | USD15,000 | SOFR+0.95% | | HUATAI B2311k | USD12,477 | 3/8/2023 | 3/11/2023 | USD12,477 | 0.00% | | HUATAI B2408b | USD15,000 | 4/8/2023 | 2/8/2024 | USD15,000 | SOFR+0.95% | | HUATAI B2408c | USD10,000 | 4/8/2023 | 2/8/2024 | USD10,000 | SOFR+0.95% | | HUATAI B2312b | USD40,000 | 4/8/2023 | 1/12/2023 | USD40,000 | 6.02% | | HUATAI B2408d | USD15,000 | 10/8/2023 | 9/8/2024 | USD15,000 | 6.05% | | HUATAI B2402j | USD30,000 | 18/8/2023 | 21/2/2024 | USD30,000 | 6.14% | | HUATAI B2311l | USD10,000 | 21/8/2023 | 21/11/2023 | USD10,000 | 6.00% | | HUATAI B2311m | USD45,000 | 22/8/2023 | 22/11/2023 | USD45,000 | 6.05% | | HUATAI B2402k | HKD29,000 | 22/8/2023 | 22/2/2024 | HKD29,000 | 5.50% | | HUATAI B2402l | USD5,800 | 22/8/2023 | 22/2/2024 | USD5,800 | 6.10% | | HUATAI B2409a | USD65,000 | 12/9/2023 | 11/9/2024 | USD65,000 | 6.00% | | HUATAI B2312c | USD30,000 | 18/9/2023 | 18/12/2023 | USD30,000 | 6.06% | | HUATAI B2403b | USD18,050 | 22/9/2023 | 22/3/2024 | USD18,050 | 0.00% | | HUATAI B2409b | USD13,150 | 22/9/2023 | 20/9/2024 | USD13,150 | 0.00% | | HUATAI B2403c | USD60,000 | 27/9/2023 | 26/3/2024 | USD60,000 | 6.00% | | HUATAI B2409c | CNY400,000 | 28/9/2023 | 24/9/2024 | CNY400,000 | 3.78% | | HUATAI B2312d | USD10,340 | 29/9/2023 | 29/12/2023 | USD10,340 | 0.00% | | HUATAI B2404 | USD10,000 | 17/10/2023 | 17/4/2024 | USD10,000 | 6.31% | | HUATAI B2410 | CNY650,000 | 20/10/2023 | 16/10/2024 | CNY650,000 | 3.80% | | HUATAI B2401f | USD16,750 | 25/10/2023 | 25/1/2024 | USD16,750 | 0.00% | | HUATAI B2405c | USD14,500 | 25/10/2023 | 2/5/2024 | USD14,500 | 0.00% | | HUATAI B2407d | USD15,000 | 27/10/2023 | 27/7/2024 | USD15,000 | 6.36% | | HUATAI B2401g | USD10,000 | 27/10/2023 | 27/1/2024 | USD10,000 | 6.27% | | HUATAI B2407e | USD10,000 | 27/10/2023 | 27/7/2024 | USD10,000 | 6.36% | | HUATAI B2411a | USD30,000 | 6/11/2023 | 4/11/2024 | USD30,000 | 0.00% | | HUATAI B2402c | USD18,000 | 7/11/2023 | 7/2/2024 | USD18,000 | 6.30% | | HUATAI B2402g | USD17,000 | 9/11/2023 | 15/2/2024 | USD17,000 | 6.30% | | HUATAI B2402h | USD15,000 | 10/11/2023 | 15/2/2024 | USD15,000 | 6.30% | | HUATAI B2402e | USD10,000 | 10/11/2023 | 9/2/2024 | USD10,000 | 5.87% | | HUATAI B2411b | USD35,000 | 13/11/2023 | 8/11/2024 | USD35,000 | 0.00% | | HUATAI B2402d | USD18,200 | 13/11/2023 | 8/2/2024 | USD18,200 | 0.00% | | HUATAI B2402f | USD20,000 | 14/11/2023 | 14/2/2024 | USD20,000 | 0.00% | | HUATAI B2402i | USD15,460 | 15/11/2023 | 15/2/2024 | USD15,460 | 0.00% | | HUATAI B2405d | USD10,000 | 21/11/2023 | 21/5/2024 | USD10,000 | 6.46% | | HUATAI B2405e | HKD200,000 | 28/11/2023 | 28/5/2024 | HKD200,000 | 6.04% | | HUATAI B2409d | USD95,000 | 6/12/2023 | 6/9/2024 | USD95,000 | 6.00% | | HUATAI B2406d | USD25,000 | 7/12/2023 | 7/6/2024 | USD25,000 | 6.40% | | HUATAI B2406e | USD10,000 | 7/12/2023 | 7/6/2024 | USD10,000 | 6.36% | | HUATAI B2403d | USD40,000 | 8/12/2023 | 8/3/2024 | USD40,000 | 0.00% | | HUATAI B2406f | USD20,000 | 8/12/2023 | 7/6/2024 | USD20,000 | 0.00% | | Structured notes (1) | RMB2,786,805 | Note (1) | Note (1) | RMB2,786,805 | Note (1) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2023 - continued - 118 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | | 1 January | | | 31 December | | Name | 2023 | Increase | Decrease | 2023 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 22 HUATAI F1 | 4,105,269 | 4,731 | (4,110,000) | - | | 22 HUATAI S2 | 5,032,777 | 7,417 | (5,040,194) | - | | 23 HUATAI S1 | - | 5,060,551 | (5,060,551) | - | | 23 HUATAI S2 | - | 5,069,456 | (5,069,456) | - | | 23 HUATAI S3 | - | 3,010,680 | - | 3,010,680 | | 23 HUATAI S4 | - | 4,012,072 | - | 4,012,072 | | 23 HUATAI S5 | - | 2,003,626 | - | 2,003,626 | | 23 HUATAI S6 | - | 5,004,805 | - | 5,004,805 | | HUATAI B2304a | 697,585 | 21,280 | (718,865) | - | | HUATAI B2304b | 697,585 | 21,280 | (718,865) | - | | HUATAI B2304c | 697,585 | 21,280 | (718,865) | - | | HUATAI B2302a | 354,203 | 7,484 | (361,687) | - | | HUATAI B2302b | 271,621 | 4,659 | (276,280) | - | | HUATAI B2305a | 354,025 | 10,148 | (364,173) | - | | HUATAI B2306 | 707,321 | 21,095 | (728,416) | - | | HUATAI B2308 | 105,092 | 4,327 | (109,419) | - | | HUATAI B2302d | 126,321 | 3,015 | (129,336) | - | | HUATAI B2302e | 269,950 | 5,850 | (275,800) | - | | HUATAI B2302f | 74,030 | 1,755 | (75,785) | - | | HUATAI B2302g | 445,902 | 9,804 | (455,706) | - | | HUATAI B2302h | 38,132 | 816 | (38,948) | - | | HUATAI B2302i | 20,749 | 447 | (21,196) | - | | HUATAI B2302j | 132,878 | 3,052 | (135,930) | - | | HUATAI B2311 | 279,817 | 20,584 | (300,401) | - | | HUATAI B2302k | 59,279 | 1,490 | (60,769) | - | | HUATAI B2302l | 690,163 | 18,107 | (708,270) | - | | HUATAI B2302m | 345,082 | 9,053 | (354,135) | - | | HUATAI B2303a | 33,398 | 875 | (34,273) | - | | HUATAI B2303b | 12,390 | 297 | (12,687) | - | | HUATAI B2303c | 69,931 | 1,858 | (71,789) | - | | HUATAI B2312 | 440,604 | 14,710 | (455,314) | - | | HUATAI B2306b | 420,182 | 18,945 | (439,127) | - | | HUATAI B2306c | 225,057 | 10,102 | (235,159) | - | | HUATAI B2304d | - | 215,101 | (215,101) | - | | HUATAI B2401a | - | 191,563 | - | 191,563 | | HUATAI B2304e | - | 56,924 | (56,924) | - | | HUATAI B2304f | - | 141,654 | (141,654) | - | | HUATAI B2304g | - | 143,508 | (143,508) | - | | HUATAI B2307d | - | 145,186 | (145,186) | - | | HUATAI B2312a | - | 444,697 | (444,697) | - | | HUATAI B2307e | - | 185,885 | (185,885) | - | | HUATAI B2401b | - | 149,401 | - | 149,401 | | HUATAI B2310 | - | 354,135 | (354,135) | - | | HUATAI B2402a | - | 105,865 | - | 105,865 | | HUATAI B2308a | - | 72,737 | (72,737) | - | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2023 - continued - 119 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | | 1 January | | | 31 December | | Name | 2023 | Increase | Decrease | 2023 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | HUATAI B2308b | - | 332,887 | (332,887) | - | | HUATAI B2402b | - | 145,320 | - | 145,320 | | HUATAI B2308c | - | 145,553 | (145,553) | - | | HUATAI B2308d | - | 708,270 | (708,270) | - | | HUATAI B2305b | - | 46,746 | (46,746) | - | | HUATAI B2308e | - | 106,241 | (106,241) | - | | HUATAI B2305c | - | 94,554 | (94,554) | - | | HUATAI B2308h | - | 218,234 | (218,234) | - | | HUATAI B2305d | - | 107,639 | (107,639) | - | | HUATAI B2308i | - | 708,270 | (708,270) | - | | HUATAI B2305e | - | 182,966 | (182,966) | - | | HUATAI B2308f | - | 362,576 | (362,576) | - | | HUATAI B2306a | - | 83,718 | (83,718) | - | | HUATAI B2306d | - | 141,654 | (141,654) | - | | HUATAI B2309b | - | 708,270 | (708,270) | - | | HUATAI B2403a | - | 215,457 | - | 215,457 | | HUATAI B2307f | - | 120,406 | (120,406) | - | | HUATAI B2307g | - | 44,621 | (44,621) | - | | HUATAI B2307h | - | 127,489 | (127,489) | - | | HUATAI B2307i | - | 143,549 | (143,549) | - | | HUATAI B2311a | - | 46,216 | (46,216) | - | | HUATAI B2405b | - | 442,864 | - | 442,864 | | HUATAI B2307a | - | 71,473 | (71,473) | - | | HUATAI B2311b | - | 145,617 | (145,617) | - | | HUATAI B2307b | - | 285,979 | (285,979) | - | | HUATAI B2307c | - | 89,328 | (89,328) | - | | HUATAI B2311c | - | 72,848 | (72,848) | - | | HUATAI B2311d | - | 36,476 | (36,476) | - | | HUATAI B2307j | - | 181,646 | (181,646) | - | | HUATAI B2311g | - | 185,557 | (185,557) | - | | HUATAI B2307k | - | 91,342 | (91,342) | - | | HUATAI B2307l | - | 107,241 | (107,241) | - | | HUATAI B2309a | - | 107,815 | (107,815) | - | | HUATAI B2406c | - | 365,627 | - | 365,627 | | HUATAI B2308g | - | 228,339 | (228,339) | - | | HUATAI B2309c | - | 186,275 | (186,275) | - | | HUATAI B2311f | - | 276,225 | (276,225) | - | | HUATAI B2311h | - | 74,368 | (74,368) | - | | HUATAI B2309d | - | 71,809 | (71,809) | - | | HUATAI B2311i | - | 184,773 | (184,773) | - | | HUATAI B2310a | - | 334,828 | (334,828) | - | | HUATAI B2401c | - | 200,207 | - | 200,207 | | HUATAI B2310b | - | 71,862 | (71,862) | - | | HUATAI B2407a | - | 80,069 | - | 80,069 | | HUATAI B2401d | - | 92,848 | - | 92,848 | | HUATAI B2401e | - | 143,770 | - | 143,770 | | HUATAI B2310c | - | 183,689 | (183,689) | - | | HUATAI B2407b | - | 130,051 | - | 130,051 | | HUATAI B2401h | - | 108,958 | - | 108,958 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 44. Short-term debt instruments issued - continued As at 31 December 2023 - continued - 120 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | | 1 January | | | 31 December | | Name | 2023 | Increase | Decrease | 2023 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | HUATAI B2401i | - | 92,760 | - | 92,760 | | HUATAI B2311j | - | 215,710 | (215,710) | - | | HUATAI B2407c | - | 71,515 | - | 71,515 | | HUATAI B2408a | - | 107,254 | - | 107,254 | | HUATAI B2311k | - | 88,371 | (88,371) | - | | HUATAI B2408b | - | 107,235 | - | 107,235 | | HUATAI B2408c | - | 71,490 | - | 71,490 | | HUATAI B2312b | - | 288,868 | (288,868) | - | | HUATAI B2408d | - | 108,645 | - | 108,645 | | HUATAI B2402j | - | 217,250 | - | 217,250 | | HUATAI B2311l | - | 71,898 | (71,898) | - | | HUATAI B2311m | - | 323,582 | (323,582) | - | | HUATAI B2402k | - | 491 | - | 491 | | HUATAI B2402l | - | 851 | - | 851 | | HUATAI B2409a | - | 467,832 | - | 467,832 | | HUATAI B2312c | - | 215,691 | (215,691) | - | | HUATAI B2403b | - | 126,129 | - | 126,129 | | HUATAI B2409b | - | 89,161 | - | 89,161 | | HUATAI B2403c | - | 431,221 | - | 431,221 | | HUATAI B2409c | - | 403,780 | - | 403,780 | | HUATAI B2312d | - | 73,235 | (73,235) | - | | HUATAI B2404 | - | 71,719 | - | 71,719 | | HUATAI B2410 | - | 654,445 | - | 654,445 | | HUATAI B2401f | - | 118,128 | - | 118,128 | | HUATAI B2405c | - | 100,618 | - | 100,618 | | HUATAI B2407d | - | 107,402 | - | 107,402 | | HUATAI B2401g | - | 71,590 | - | 71,590 | | HUATAI B2407e | - | 71,601 | - | 71,601 | | HUATAI B2411a | - | 201,570 | - | 201,570 | | HUATAI B2402c | - | 128,623 | - | 128,623 | | HUATAI B2402g | - | 121,435 | - | 121,435 | | HUATAI B2402h | - | 107,130 | - | 107,130 | | HUATAI B2402e | - | 71,365 | - | 71,365 | | HUATAI B2411b | - | 235,040 | - | 235,040 | | HUATAI B2402d | - | 128,016 | - | 128,016 | | HUATAI B2402f | - | 140,531 | - | 140,531 | | HUATAI B2402i | - | 108,628 | - | 108,628 | | HUATAI B2405d | - | 71,297 | - | 71,297 | | HUATAI B2405e | - | 182,247 | - | 182,247 | | HUATAI B2409d | - | 673,468 | - | 673,468 | | HUATAI B2406d | - | 177,726 | - | 177,726 | | HUATAI B2406e | - | 71,086 | - | 71,086 | | HUATAI B2403d | - | 279,875 | - | 279,875 | | HUATAI B2406f | - | 137,712 | - | 137,712 | | Structured notes (1) | 9,065,676 | 702,082 | (7,022,300) | 2,745,458 | | Total | 25,772,604 | 44,261,130 | (44,558,227) | 25,475,507 | (1) During the year ended 31 December 2024, the Company has issued 186 tranches of structured notes, bearing interest ranging from 1.78% to 6.58% per annum, repayable within 1 year. Structured notes repayable more than 1 year are classified as "Long-term bonds" (Note 53). (During the year ended 31 December 2023, the Company has issued 182 tranches of structured notes, bearing interest ranging from 2.20% to 6.58% per annum). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 121 - 45. Placements from other financial institutions Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Placements from banks | 30,113,661 | 39,244,418 | | Placements from refinancing business | - | 292,109 | | Total | 30,113,661 | 39,536,527 | As at 31 December 2024, the placements from banks are unsecured, bearing interest of 1.40% - 5.17% per annum, with maturities within 114 days (as at 31 December 2023, the placements from banks are unsecured, bearing interest of 1.00% -6.15% per annum, with maturities within 361 days), and the placements from CSF is nil (as at 31 December 2023: the placements from CSF are secured by the securities and refundable deposits held by the Group, bearing interest of 2.15%- 2.90%per annum, with maturities within 170 days, and the placements from CSF is RMB292 million). 46. Accounts payable to brokerage clients Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Clients' deposits for brokerage trading | 162,456,364 | 129,645,383 | | Clients' deposits for margin financing and securities | | | | lending | 22,130,612 | 15,055,977 | | Total | 184,586,976 | 144,701,360 | Accounts payable to brokerage clients represent the monies received from and repayable to brokerage clients, which are mainly held at banks and at clearing houses by the Group. Accounts payable to brokerage clients are interest-bearing at the prevailing interest rate. The majority of the accounts payable balances are repayable on demand except where certain accounts payable to brokerage clients represent monies received from clients for their margin financing activities under normal course of business, such as margin financing and securities lending. Only the excess amounts over the required margin deposits and cash collateral stipulated are repayable on demand. No aging analysis is disclosed as in the opinion of the directors of the Company, the aging analysis does not give additional value in view of the nature of these businesses. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 122 - 47. Employee benefits payable Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Salaries, bonuses and allowance | 6,116,922 | 6,431,780 | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Salaries, bonuses and allowance | 4,194,639 | 3,744,726 | | Contribution to pension scheme | 203 | 4,284 | | Other social welfare | 394,171 | 402,429 | | Total | 4,589,013 | 4,151,439 | 48. Other payables and accruals Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Lease liabilities | | | | 1 to 2 years (inclusive) | 296,568 | 572,755 | | 2 to 5 years (inclusive) | 251,721 | 282,494 | | After 5 years | 33,657 | 72,031 | | Total | 581,946 | 927,280 | The Group's leases are mainly land and buildings for operations. Most lease contracts are entered into terms from 1 year to 5 years. (1) During year of 2024, the expenses related to short-term leases and low-value leases of RMB31 million (2023: RMB39 million) were recognised in profit or loss. (2) As at 31 December 2024, the cash flows of lease contracts signed by the Group but lease not yet commenced are insignificant. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 48. Other payables and accruals - continued - 123 - Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Trade payable | 67,027,191 | 98,159,066 | | Payable to brokers, dealers and clearing house | 3,967,684 | 3,841,663 | | Payable to open-ended funds | 1,008,569 | 7,825,379 | | Other tax payable | 344,952 | 168,412 | | Restrictive repurchase obligation | 100,545 | 228,371 | | Lease liabilities | 432,669 | 540,881 | | Fee and commission payable | 42,640 | 110,456 | | Futures risk reserve | 261,750 | 238,043 | | Payable to outsourcing service | 115,275 | 161,898 | | Payable to the securities investor protection fund | 66,545 | 48,563 | | Funds payable to securities issuers | 69,650 | 228,431 | | Payable for office building construction | 20,635 | 24,314 | | Dividend payable | 13,097 | 64,097 | | Accrued liabilities (1) | 746,108 | 570,142 | | Others (2) | 1,219,109 | 1,675,083 | | Total | 75,436,419 | 113,884,799 | (1) The balance of accrued liabilities mainly represents the provisions accrued for the outstanding litigations amounting to RMB746 million. (Note 58). (2) The balance of others mainly represents payable to brokerage agents and sundry payables arising from normal course of business. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 124 - 49. Contract liabilities | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Advance fee and commission | 104,280 | 158,581 | | Advance consideration from commodity trading | 412 | 18,919 | | Total | 104,692 | 177,500 | 50. Financial assets sold under repurchase agreements (a) Analysed by collateral type: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt securities | 113,398,845 | 130,284,994 | | Equity securities | 7,649,323 | 13,771,155 | | Total | 121,048,168 | 144,056,149 | As at 31 December 2024, the Group's pledged collateral in connection with financial assets sold under repurchase agreements amounted to RMB 154,418 million (as at 31 December 2023: RMB177,096 million). (b) Analysed by market: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Inter-bank market | 73,799,904 | 91,007,974 | | Shanghai stock exchange | 33,351,190 | 39,159,490 | | Shenzhen stock exchange | 13,897,074 | 13,888,685 | | Total | 121,048,168 | 144,056,149 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 125 - 51. Financial liabilities at fair value through profit or loss Non-current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Financial liabilities designated at fair value through profit | | | | or loss | 6,973,421 | 8,961,031 | Current | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Financial liabilities held for trading | 26,585,600 | 35,932,137 | | Financial liabilities designated at fair value through profit | | | | or loss | 6,889,311 | 7,777,998 | | Total | 33,474,911 | 43,710,135 | In the consolidated financial statements, the financial liabilities arising from consolidation of structured entities and private funds with the underlying investments related to listed equity investments in active markets and unlisted equity investments are designated at fair value through profit or loss by the Group, as the Group has the obligation to pay other investors or limited partners upon maturity dates of the structured entities based on net book value and related terms of those consolidated asset management schemes or private equity funds. In the consolidated financial statements, certain structured notes are designated at fair value through profit or loss by the Group, as the host contracts of structured notes contains embedded derivatives. In the consolidated financial statements, certain bonds are designated at fair value through profit or loss by the Group, as the designation can significantly reduce the accounting mismatch. As at 31 December 2024 and 31 December 2023, there were no significant fair value changes related to the changes in the credit risk of the Group, respectively. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 126 - 52. Long-term bonds due within one year As at 31 December 2024 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 21 HUATAI G1 | RMB4,000,000 | 2021/01/20 | 2024/01/20 | RMB4,000,000 | 3.58% | | 21 HUATAI G3 | RMB5,000,000 | 2021/04/26 | 2024/04/26 | RMB5,000,000 | 3.42% | | 21 HUATAI G5 | RMB4,000,000 | 2021/05/24 | 2024/05/24 | RMB4,000,000 | 3.28% | | 21 HUATAI G7 | RMB2,000,000 | 2021/06/15 | 2024/06/15 | RMB2,000,000 | 3.40% | | 21 HUATAI 09 | RMB2,500,000 | 2021/06/21 | 2024/06/21 | RMB2,500,000 | 3.45% | | 21 HUATAI 11 | RMB1,500,000 | 2021/09/07 | 2024/09/07 | RMB1,500,000 | 3.03% | | 21 HUATAI 13 | RMB2,100,000 | 2021/10/18 | 2024/10/18 | RMB2,100,000 | 3.25% | | 21 HUATAI 15 | RMB2,200,000 | 2021/10/25 | 2024/10/25 | RMB2,200,000 | 3.22% | | 22 HUATAI G2 | RMB2,000,000 | 2022/08/15 | 2024/08/15 | RMB2,000,000 | 2.43% | | 22 HUATAI G3 | RMB3,000,000 | 2022/08/26 | 2024/08/26 | RMB3,000,000 | 2.33% | | 22 HUATAI G6 | RMB3,600,000 | 2022/11/21 | 2024/11/21 | RMB3,600,000 | 2.87% | | 22 HUATAI G8 | RMB1,500,000 | 2022/12/05 | 2024/12/05 | RMB1,500,000 | 2.87% | | 22 HUATAI 12 | RMB4,000,000 | 2022/12/22 | 2024/12/22 | RMB4,000,000 | 3.24% | | 20 HUATAI G3 | RMB3,500,000 | 2020/04/29 | 2025/04/29 | RMB3,500,000 | 2.90% | | 20 HUATAI G4 | RMB3,000,000 | 2020/05/21 | 2025/05/21 | RMB3,000,000 | 3.20% | | 22 HUATAI G1 | RMB5,000,000 | 2022/02/14 | 2025/02/14 | RMB5,000,000 | 2.79% | | 22 HUATAI G4 | RMB2,000,000 | 2022/09/05 | 2025/09/05 | RMB2,000,000 | 2.52% | | 22 HUATAI G5 | RMB3,000,000 | 2022/09/13 | 2025/09/13 | RMB3,000,000 | 2.50% | | 22 HUATAI 10 | RMB2,000,000 | 2022/12/12 | 2025/12/12 | RMB2,000,000 | 3.35% | | 23 HUATAI G1 | RMB4,000,000 | 2023/01/10 | 2025/01/10 | RMB4,000,000 | 2.92% | | 23 HUATAI G2 | RMB800,000 | 2023/01/16 | 2025/01/16 | RMB800,000 | 3.00% | | 23 HUATAI G8 | RMB1,700,000 | 2023/05/10 | 2025/07/10 | RMB1,700,000 | 2.82% | | 23 HUATAI 13 | RMB1,000,000 | 2023/10/16 | 2025/10/16 | RMB1,000,000 | 2.80% | | 20 HUATAI C1 | RMB5,000,000 | 2020/11/13 | 2025/11/13 | RMB5,000,000 | 4.48% | | HUATAI B2404 | USD900,000 | 2021/04/09 | 2024/04/09 | USD900,000 | 1.30% | | HUATAI B2503 | USD1,000,000 | 2022/03/03 | 2025/03/03 | USD1,000,000 | 2.38% | | HUATAI B2509 | RMB3,025,000 | 2022/09/14 | 2025/09/14 | RMB3,025,000 | 2.85% | | Structured notes (1) | RMB500,843 | Note (1) | Note (1) | RMB500,843 | Note (1) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 52. Long-term bonds due within one year - continued - 127 - As at 31 December 2024 | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | Name | 1 January 2024 | Increase | Decrease | 31 December 2024 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 21 HUATAI G1 | 4,135,816 | 7,384 | (4,143,200) | - | | 21 HUATAI G3 | 5,115,842 | 55,158 | (5,171,000) | - | | 21 HUATAI G5 | 4,078,828 | 52,372 | (4,131,200) | - | | 21 HUATAI G7 | 2,036,717 | 31,283 | (2,068,000) | - | | 21 HUATAI 09 | 2,545,126 | 41,124 | (2,586,250) | - | | 21 HUATAI 11 | 1,514,151 | 31,299 | (1,545,450) | - | | 21 HUATAI 13 | 2,113,824 | 54,426 | (2,168,250) | - | | 21 HUATAI 15 | 2,213,012 | 57,828 | (2,270,840) | - | | 22 HUATAI G2 | 2,017,898 | 30,702 | (2,048,600) | - | | 22 HUATAI G3 | 3,023,508 | 46,392 | (3,069,900) | - | | 22 HUATAI G6 | 3,611,143 | 92,177 | (3,703,320) | - | | 22 HUATAI G8 | 1,502,580 | 40,470 | (1,543,050) | - | | 22 HUATAI 12 | 4,001,636 | 127,964 | (4,129,600) | - | | 20 HUATAI G3 | - | 3,669,503 | (101,500) | 3,568,003 | | 20 HUATAI G4 | - | 3,154,606 | (96,000) | 3,058,606 | | 22 HUATAI G1 | - | 5,261,756 | (139,500) | 5,122,256 | | 22 HUATAI G4 | - | 2,066,255 | (50,400) | 2,015,855 | | 22 HUATAI G5 | - | 3,096,831 | (75,000) | 3,021,831 | | 22 HUATAI 10 | - | 2,070,097 | (67,000) | 2,003,097 | | 23 HUATAI G1 | - | 4,231,409 | (116,800) | 4,114,609 | | 23 HUATAI G2 | - | 847,152 | (24,000) | 823,152 | | 23 HUATAI G8 | - | 1,778,787 | (47,940) | 1,730,847 | | 23 HUATAI 13 | - | 1,033,674 | (28,000) | 1,005,674 | | 20 HUATAI C1 | - | 5,253,184 | (224,000) | 5,029,184 | | HUATAI B2404 | 6,388,692 | 67,244 | (6,455,936) | - | | HUATAI B2503 | - | 7,416,677 | (170,846) | 7,245,831 | | HUATAI B2509 | - | 3,135,411 | (86,920) | 3,048,491 | | Structured notes (1) | 504,716 | - | (504,716) | - | | Total | 44,803,489 | 43,751,165 | (46,767,218) | 41,787,436 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 52. Long-term bonds due within one year - continued - 128 - As at 31 December 2023 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 13 HUATAI 02 | RMB6,000,000 | 5/6/2013 | 5/6/2023 | RMB6,000,000 | 5.10% | | 18 HUATAI G2 | RMB1,000,000 | 26/11/2018 | 26/11/2023 | RMB1,000,000 | 4.17% | | 20 HUATAI G1 | RMB8,000,000 | 26/3/2020 | 26/3/2023 | RMB8,000,000 | 2.99% | | 20 HUATAI G6 | RMB3,200,000 | 18/6/2020 | 18/6/2023 | RMB3,200,000 | 3.10% | | 20 HUATAI G7 | RMB3,500,000 | 24/11/2020 | 24/11/2023 | RMB3,500,000 | 3.90% | | 20 HUATAI G9 | RMB4,000,000 | 9/12/2020 | 9/12/2023 | RMB4,000,000 | 3.79% | | 21 HUATAI G1 | RMB4,000,000 | 20/1/2021 | 20/1/2024 | RMB4,000,000 | 3.58% | | 21 HUATAI G3 | RMB5,000,000 | 26/4/2021 | 26/4/2024 | RMB5,000,000 | 3.42% | | 21 HUATAI G5 | RMB4,000,000 | 24/5/2021 | 24/5/2024 | RMB4,000,000 | 3.28% | | 21 HUATAI G7 | RMB2,000,000 | 15/6/2021 | 15/6/2024 | RMB2,000,000 | 3.40% | | 21 HUATAI 09 | RMB2,500,000 | 21/6/2021 | 21/6/2024 | RMB2,500,000 | 3.45% | | 21 HUATAI 11 | RMB1,500,000 | 7/9/2021 | 7/9/2024 | RMB1,500,000 | 3.03% | | 21 HUATAI 13 | RMB2,100,000 | 18/10/2021 | 18/10/2024 | RMB2,100,000 | 3.25% | | 21 HUATAI 15 | RMB2,200,000 | 25/10/2021 | 25/10/2024 | RMB2,200,000 | 3.22% | | 22 HUATAI G2 | RMB2,000,000 | 15/8/2022 | 15/8/2024 | RMB2,000,000 | 2.43% | | 22 HUATAI G3 | RMB3,000,000 | 26/8/2022 | 26/8/2024 | RMB3,000,000 | 2.33% | | 22 HUATAI G6 | RMB3,600,000 | 21/11/2022 | 21/11/2024 | RMB3,600,000 | 2.87% | | 22 HUATAI G8 | RMB1,500,000 | 5/12/2022 | 5/12/2024 | RMB1,500,000 | 2.87% | | 22 HUATAI 12 | RMB4,000,000 | 22/12/2022 | 22/12/2024 | RMB4,000,000 | 3.24% | | HUATAI B2302c | USD400,000 | 12/2/2020 | 12/2/2023 | USD400,000 | LIBOR+0.95% | | HUATAI B2404 | USD900,000 | 9/4/2021 | 9/4/2024 | USD900,000 | 1.30% | | Structured notes (1) | RMB500,843 | Note (1) | Note (1) | RMB500,843 | Note (1) | | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | Name | 1 January 2023 | Increase | Decrease | 31 December 2023 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 13 HUATAI 02 | 6,177,782 | 128,218 | (6,306,000) | - | | 18 HUATAI G2 | 1,003,869 | 37,831 | (1,041,700) | - | | 20 HUATAI G1 | 8,182,656 | 56,544 | (8,239,200) | - | | 20 HUATAI G6 | 3,251,653 | 47,547 | (3,299,200) | - | | 20 HUATAI G7 | 3,513,690 | 122,810 | (3,636,500) | - | | 20 HUATAI G9 | 4,009,121 | 142,479 | (4,151,600) | - | | 21 HUATAI G1 | - | 4,279,016 | (143,200) | 4,135,816 | | 21 HUATAI G3 | - | 5,286,842 | (171,000) | 5,115,842 | | 21 HUATAI G5 | - | 4,210,028 | (131,200) | 4,078,828 | | 21 HUATAI G7 | - | 2,104,717 | (68,000) | 2,036,717 | | 21 HUATAI 09 | - | 2,631,376 | (86,250) | 2,545,126 | | 21 HUATAI 11 | - | 1,559,601 | (45,450) | 1,514,151 | | 21 HUATAI 13 | - | 2,182,074 | (68,250) | 2,113,824 | | 21 HUATAI 15 | - | 2,283,852 | (70,840) | 2,213,012 | | 22 HUATAI G2 | - | 2,066,498 | (48,600) | 2,017,898 | | 22 HUATAI G3 | - | 3,093,408 | (69,900) | 3,023,508 | | 22 HUATAI G6 | - | 3,714,463 | (103,320) | 3,611,143 | | 22 HUATAI G8 | - | 1,545,630 | (43,050) | 1,502,580 | | 22 HUATAI 12 | - | 4,131,236 | (129,600) | 4,001,636 | | HUATAI B2302c | 2,802,824 | 11,082 | (2,813,906) | - | | HUATAI B2404 | - | 6,471,560 | (82,868) | 6,388,692 | | Structured notes (1) | 121,154 | 504,716 | (121,154) | 504,716 | | Total | 29,062,749 | 46,611,528 | (30,870,788) | 44,803,489 | (1) As at 31 December 2024, no structured note would mature within one year (as at 31 December 2023: RMB504.72 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 129 - 53. Long-term bonds As at 31 December 2024 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 20 HUATAI G3 | RMB3,500,000 | 29/4/2020 | 29/4/2025 | RMB3,500,000 | 2.90% | | 20 HUATAI G4 | RMB3,000,000 | 21/5/2020 | 21/5/2025 | RMB3,000,000 | 3.20% | | 21 HUATAI G4 | RMB6,000,000 | 17/5/2021 | 17/5/2026 | RMB6,000,000 | 3.71% | | 21 HUATAI G6 | RMB2,000,000 | 24/5/2021 | 24/5/2026 | RMB2,000,000 | 3.63% | | 21 HUATAI 12 | RMB2,700,000 | 7/9/2021 | 7/9/2031 | RMB2,700,000 | 3.78% | | 21 HUATAI 14 | RMB3,400,000 | 18/10/2021 | 18/10/2031 | RMB3,400,000 | 3.99% | | 21 HUATAI 16 | RMB1,100,000 | 25/10/2021 | 25/10/2031 | RMB1,100,000 | 3.94% | | 22 HUATAI G1 | RMB5,000,000 | 14/2/2022 | 14/2/2025 | RMB5,000,000 | 2.79% | | 22 HUATAI G4 | RMB2,000,000 | 5/9/2022 | 5/9/2025 | RMB2,000,000 | 2.52% | | 22 HUATAI G5 | RMB3,000,000 | 13/9/2022 | 13/9/2025 | RMB3,000,000 | 2.50% | | 22 HUATAI G7 | RMB1,400,000 | 21/11/2022 | 21/11/2027 | RMB1,400,000 | 3.18% | | 22 HUATAI 10 | RMB2,000,000 | 12/12/2022 | 12/12/2025 | RMB2,000,000 | 3.35% | | 22 HUATAI 11 | RMB500,000 | 12/12/2022 | 12/12/2027 | RMB500,000 | 3.49% | | 23 HUATAI G1 | RMB4,000,000 | 10/1/2023 | 10/1/2025 | RMB4,000,000 | 2.92% | | 23 HUATAI G2 | RMB800,000 | 16/1/2023 | 16/1/2025 | RMB800,000 | 3.00% | | 23 HUATAI G3 | RMB2,000,000 | 16/1/2023 | 16/1/2028 | RMB2,000,000 | 3.48% | | 23 HUATAI G4 | RMB4,500,000 | 6/2/2023 | 6/2/2026 | RMB4,500,000 | 3.23% | | 23 HUATAI G5 | RMB4,000,000 | 13/2/2023 | 13/2/2028 | RMB4,000,000 | 3.39% | | 23 HUATAI G6 | RMB1,500,000 | 27/2/2023 | 27/2/2026 | RMB1,500,000 | 3.14% | | 23 HUATAI G7 | RMB2,200,000 | 27/2/2023 | 27/2/2028 | RMB2,200,000 | 3.36% | | 23 HUATAI G8 | RMB1,700,000 | 10/5/2023 | 10/7/2025 | RMB1,700,000 | 2.82% | | 23 HUATAI G9 | RMB700,000 | 10/5/2023 | 10/5/2028 | RMB700,000 | 3.07% | | 23 HUATAI 10 | RMB2,000,000 | 24/8/2023 | 24/8/2026 | RMB2,000,000 | 2.64% | | 23 HUATAI 11 | RMB2,500,000 | 21/9/2023 | 21/9/2026 | RMB2,500,000 | 2.89% | | 23 HUATAI 13 | RMB1,000,000 | 16/10/2023 | 16/10/2025 | RMB1,000,000 | 2.80% | | 23 HUATAI 14 | RMB1,600,000 | 16/10/2023 | 16/10/2033 | RMB1,600,000 | 3.35% | | 23 HUATAI 15 | RMB1,000,000 | 6/11/2023 | 6/8/2026 | RMB1,000,000 | 2.83% | | 23 HUATAI 16 | RMB2,500,000 | 6/11/2023 | 6/11/2033 | RMB2,500,000 | 3.30% | | 23 HUATAI F2 | RMB2,800,000 | 27/11/2023 | 27/11/2026 | RMB2,800,000 | 3.07% | | 23 HUATAI F4 | RMB3,600,000 | 15/12/2023 | 15/12/2026 | RMB3,600,000 | 3.08% | | 20 HUATAI C1 | RMB5,000,000 | 13/11/2020 | 13/11/2025 | RMB5,000,000 | 4.48% | | 21 HUATAI C1 | RMB9,000,000 | 29/1/2021 | 29/1/2026 | RMB9,000,000 | 4.50% | | HUATAI B2604 | USD500,000 | 9/4/2021 | 9/4/2026 | USD500,000 | 2.00% | | HUATAI B2503 | USD1,000,000 | 3/3/2022 | 3/3/2025 | USD1,000,000 | 2.38% | | HUATAI B2509 | RMB3,025,000 | 14/9/2022 | 14/9/2025 | RMB3,025,000 | 2.85% | | HUATAI B2608 | USD400,000 | 9/8/2023 | 9/8/2026 | USD400,000 | 5.25% | | HUATAI B2611 | USD800,000 | 29/11/2023 | 29/11/2026 | USD800,000 | SOFR + 0.9% | | Structured notes (1) | RMB3,030,000 | Note (1) | Note (1) | RMB3,030,000 | Note (1) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 53. Long-term bonds - continued As at 31 December 2024 - continued - 130 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | Name | 1 January 2024 | Increase | Decrease | 31 December 2024 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 20 HUATAI G3 | 3,567,318 | - | (3,567,318) | - | | 20 HUATAI G4 | 3,058,017 | - | (3,058,017) | - | | 21 HUATAI G4 | 6,135,944 | 223,782 | (222,600) | 6,137,126 | | 21 HUATAI G6 | 2,042,945 | 72,994 | (72,600) | 2,043,339 | | 21 HUATAI 12 | 2,730,840 | 102,230 | (102,060) | 2,731,010 | | 21 HUATAI 14 | 3,427,143 | 135,724 | (135,660) | 3,427,207 | | 21 HUATAI 16 | 1,107,853 | 43,361 | (43,340) | 1,107,874 | | 22 HUATAI G1 | 5,120,528 | - | (5,120,528) | - | | 22 HUATAI G4 | 2,015,297 | - | (2,015,297) | - | | 22 HUATAI G5 | 3,020,889 | - | (3,020,889) | - | | 22 HUATAI G7 | 1,404,717 | 44,576 | (44,520) | 1,404,773 | | 22 HUATAI 10 | 2,002,581 | - | (2,002,581) | - | | 22 HUATAI 11 | 500,628 | 17,524 | (17,450) | 500,702 | | 23 HUATAI G1 | 4,113,345 | - | (4,113,345) | - | | 23 HUATAI G2 | 822,900 | - | (822,900) | - | | 23 HUATAI G3 | 2,065,894 | 69,841 | (69,600) | 2,066,135 | | 23 HUATAI G4 | 4,629,523 | 146,281 | (145,350) | 4,630,454 | | 23 HUATAI G5 | 4,117,997 | 136,000 | (135,600) | 4,118,397 | | 23 HUATAI G6 | 1,539,132 | 47,358 | (47,100) | 1,539,390 | | 23 HUATAI G7 | 2,261,221 | 74,139 | (73,920) | 2,261,440 | | 23 HUATAI G8 | 1,730,405 | - | (1,730,405) | - | | 23 HUATAI G9 | 713,520 | 21,560 | (21,490) | 713,590 | | 23 HUATAI 10 | 2,017,583 | 53,243 | (52,800) | 2,018,026 | | 23 HUATAI 11 | 2,518,935 | 72,673 | (72,250) | 2,519,358 | | 23 HUATAI 13 | 1,005,417 | - | (1,005,417) | - | | 23 HUATAI 14 | 1,610,427 | 53,671 | (53,600) | 1,610,498 | | 23 HUATAI 15 | 1,003,315 | 29,197 | (28,300) | 1,004,212 | | 23 HUATAI 16 | 2,510,029 | 84,620 | (82,500) | 2,512,149 | | 23 HUATAI F2 | 2,808,118 | 85,960 | (85,960) | 2,808,118 | | 23 HUATAI F4 | 3,601,796 | 111,953 | (110,880) | 3,602,869 | | 20 HUATAI C1 | 5,028,420 | - | (5,028,420) | - | | 21 HUATAI C1 | 9,370,679 | 406,805 | (405,000) | 9,372,484 | | HUATAI B2604 | 3,550,894 | 130,349 | (71,904) | 3,609,339 | | HUATAI B2503 | 7,123,519 | - | (7,123,519) | - | | HUATAI B2509 | 3,044,890 | - | (3,044,890) | - | | HUATAI B2608 | 2,876,402 | 201,996 | (151,001) | 2,927,397 | | HUATAI B2611 | 5,685,678 | 452,832 | (360,562) | 5,777,948 | | Structured notes (1) | 3,127,773 | 99,773 | - | 3,227,546 | | Total | 115,012,512 | 2,918,442 | (44,259,573) | 73,671,381 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 53. Long-term bonds - continued - 131 - As at 31 December 2023 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | Nominal | | Name | Par value | Issuance date | Due date | Issue amount | interest rate | | | Original currency | | | Original currency | | | 20 HUATAI G3 | RMB3,500,000 | 29/4/2020 | 29/4/2025 | RMB3,500,000 | 2.90% | | 20 HUATAI G4 | RMB3,000,000 | 21/5/2020 | 21/5/2025 | RMB3,000,000 | 3.20% | | 21 HUATAI G1 | RMB4,000,000 | 20/1/2021 | 20/1/2024 | RMB4,000,000 | 3.58% | | 21 HUATAI G3 | RMB5,000,000 | 26/4/2021 | 26/4/2024 | RMB5,000,000 | 3.42% | | 21 HUATAI G4 | RMB6,000,000 | 17/5/2021 | 17/5/2026 | RMB6,000,000 | 3.71% | | 21 HUATAI G5 | RMB4,000,000 | 24/5/2021 | 24/5/2024 | RMB4,000,000 | 3.28% | | 21 HUATAI G6 | RMB2,000,000 | 24/5/2021 | 24/5/2026 | RMB2,000,000 | 3.63% | | 21 HUATAI G7 | RMB2,000,000 | 15/6/2021 | 15/6/2024 | RMB2,000,000 | 3.40% | | 21 HUATAI 09 | RMB2,500,000 | 21/6/2021 | 21/6/2024 | RMB2,500,000 | 3.45% | | 21 HUATAI 11 | RMB1,500,000 | 7/9/2021 | 7/9/2024 | RMB1,500,000 | 3.03% | | 21 HUATAI 12 | RMB2,700,000 | 7/9/2021 | 7/9/2031 | RMB2,700,000 | 3.78% | | 21 HUATAI 13 | RMB2,100,000 | 18/10/2021 | 18/10/2024 | RMB2,100,000 | 3.25% | | 21 HUATAI 14 | RMB3,400,000 | 18/10/2021 | 18/10/2031 | RMB3,400,000 | 3.99% | | 21 HUATAI 15 | RMB2,200,000 | 25/10/2021 | 25/10/2024 | RMB2,200,000 | 3.22% | | 21 HUATAI 16 | RMB1,100,000 | 25/10/2021 | 25/10/2031 | RMB1,100,000 | 3.94% | | 22 HUATAI G1 | RMB5,000,000 | 14/2/2022 | 14/2/2025 | RMB5,000,000 | 2.79% | | 22 HUATAI G2 | RMB2,000,000 | 15/8/2022 | 15/8/2024 | RMB2,000,000 | 2.43% | | 22 HUATAI G3 | RMB3,000,000 | 26/8/2022 | 26/8/2024 | RMB3,000,000 | 2.33% | | 22 HUATAI G4 | RMB2,000,000 | 5/9/2022 | 5/9/2025 | RMB2,000,000 | 2.52% | | 22 HUATAI G5 | RMB3,000,000 | 13/9/2022 | 13/9/2025 | RMB3,000,000 | 2.50% | | 22 HUATAI G6 | RMB3,600,000 | 21/11/2022 | 21/11/2024 | RMB3,600,000 | 2.87% | | 22 HUATAI G7 | RMB1,400,000 | 21/11/2022 | 21/11/2027 | RMB1,400,000 | 3.18% | | 22 HUATAI G8 | RMB1,500,000 | 5/12/2022 | 5/12/2024 | RMB1,500,000 | 2.87% | | 22 HUATAI 10 | RMB2,000,000 | 12/12/2022 | 12/12/2025 | RMB2,000,000 | 3.35% | | 22 HUATAI 11 | RMB500,000 | 12/12/2022 | 12/12/2027 | RMB500,000 | 3.49% | | 22 HUATAI 12 | RMB4,000,000 | 22/12/2022 | 22/12/2024 | RMB4,000,000 | 3.24% | | 23 HUATAI G1 | RMB4,000,000 | 10/1/2023 | 10/1/2025 | RMB4,000,000 | 2.92% | | 23 HUATAI G2 | RMB800,000 | 16/1/2023 | 16/1/2025 | RMB800,000 | 3.00% | | 23 HUATAI G3 | RMB2,000,000 | 16/1/2023 | 16/1/2028 | RMB2,000,000 | 3.48% | | 23 HUATAI G4 | RMB4,500,000 | 6/2/2023 | 6/2/2026 | RMB4,500,000 | 3.23% | | 23 HUATAI G5 | RMB4,000,000 | 13/2/2023 | 13/2/2028 | RMB4,000,000 | 3.39% | | 23 HUATAI G6 | RMB1,500,000 | 27/2/2023 | 27/2/2026 | RMB1,500,000 | 3.14% | | 23 HUATAI G7 | RMB2,200,000 | 27/2/2023 | 27/2/2028 | RMB2,200,000 | 3.36% | | 23 HUATAI G8 | RMB1,700,000 | 10/5/2023 | 10/7/2025 | RMB1,700,000 | 2.82% | | 23 HUATAI G9 | RMB700,000 | 10/5/2023 | 10/5/2028 | RMB700,000 | 3.07% | | 23 HUATAI 10 | RMB2,000,000 | 24/8/2023 | 24/8/2026 | RMB2,000,000 | 2.64% | | 23 HUATAI 11 | RMB2,500,000 | 21/9/2023 | 21/9/2026 | RMB2,500,000 | 2.89% | | 23 HUATAI 13 | RMB1,000,000 | 16/10/2023 | 16/10/2025 | RMB1,000,000 | 2.80% | | 23 HUATAI 14 | RMB1,600,000 | 16/10/2023 | 16/10/2033 | RMB1,600,000 | 3.35% | | 23 HUATAI 15 | RMB1,000,000 | 6/11/2023 | 6/8/2026 | RMB1,000,000 | 2.83% | | 23 HUATAI 16 | RMB2,500,000 | 6/11/2023 | 6/11/2033 | RMB2,500,000 | 3.30% | | 23 HUATAI F2 | RMB2,800,000 | 27/11/2023 | 27/11/2026 | RMB2,800,000 | 3.07% | | 23 HUATAI F4 | RMB3,600,000 | 15/12/2023 | 15/12/2026 | RMB3,600,000 | 3.08% | | 20 HUATAI C1 | RMB5,000,000 | 13/11/2020 | 13/11/2025 | RMB5,000,000 | 4.48% | | 21 HUATAI C1 | RMB9,000,000 | 29/1/2021 | 29/1/2026 | RMB9,000,000 | 4.50% | | HUATAI B2404 | USD900,000 | 9/4/2021 | 9/4/2024 | USD900,000 | 1.30% | | HUATAI B2604 | USD500,000 | 9/4/2021 | 9/4/2026 | USD500,000 | 2.00% | | HUATAI B2503 | USD1,000,000 | 3/3/2022 | 3/3/2025 | USD1,000,000 | 2.38% | | HUATAI B2509 | CNH3,025,000 | 14/9/2022 | 14/9/2025 | CNH3,025,000 | 2.85% | | HUATAI B2608 | USD400,000 | 9/8/2023 | 9/8/2026 | USD400,000 | 5.25% | | HUATAI B2611 | USD800,000 | 29/11/2023 | 29/11/2026 | USD800,000 | SOFR + 0.90% | | Structured notes (1) | RMB3,030,000 | Note (1) | Note (1) | RMB3,030,000 | Note (1) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 53. Long-term bonds - continued As at 31 December 2023 - continued - 132 - | | | | | | | --- | --- | --- | --- | --- | | | Book value as at | | | Book value as at | | Name | 1 January 2023 | Increase | Decrease | 31 December 2023 | | | RMB equivalent | RMB equivalent | RMB equivalent | RMB equivalent | | 20 HUATAI G3 | 3,566,652 | 102,166 | (101,500) | 3,567,318 | | 20 HUATAI G4 | 3,057,447 | 96,570 | (96,000) | 3,058,017 | | 21 HUATAI G1 | 4,134,487 | - | (4,134,487) | - | | 21 HUATAI G3 | 5,114,197 | - | (5,114,197) | - | | 21 HUATAI G4 | 6,134,805 | 223,739 | (222,600) | 6,135,944 | | 21 HUATAI G5 | 4,077,517 | - | (4,077,517) | - | | 21 HUATAI G6 | 2,042,565 | 72,980 | (72,600) | 2,042,945 | | 21 HUATAI G7 | 2,036,063 | - | (2,036,063) | - | | 21 HUATAI 09 | 2,544,308 | - | (2,544,308) | - | | 21 HUATAI 11 | 1,513,806 | - | (1,513,806) | - | | 21 HUATAI 12 | 2,730,676 | 102,224 | (102,060) | 2,730,840 | | 21 HUATAI 13 | 2,113,678 | - | (2,113,678) | - | | 21 HUATAI 14 | 3,427,081 | 135,722 | (135,660) | 3,427,143 | | 21 HUATAI 15 | 2,212,859 | - | (2,212,859) | - | | 21 HUATAI 16 | 1,107,833 | 43,360 | (43,340) | 1,107,853 | | 22 HUATAI G1 | 5,118,848 | 141,180 | (139,500) | 5,120,528 | | 22 HUATAI G2 | 2,017,070 | - | (2,017,070) | - | | 22 HUATAI G3 | 3,022,110 | - | (3,022,110) | - | | 22 HUATAI G4 | 2,014,753 | 50,944 | (50,400) | 2,015,297 | | 22 HUATAI G5 | 3,019,971 | 75,918 | (75,000) | 3,020,889 | | 22 HUATAI G6 | 3,610,774 | - | (3,610,774) | - | | 22 HUATAI G7 | 1,404,662 | 44,575 | (44,520) | 1,404,717 | | 22 HUATAI G8 | 1,502,007 | - | (1,502,007) | - | | 22 HUATAI 10 | 2,002,083 | 67,498 | (67,000) | 2,002,581 | | 22 HUATAI 11 | 500,556 | 17,522 | (17,450) | 500,628 | | 22 HUATAI 12 | 3,999,798 | - | (3,999,798) | - | | 23 HUATAI G1 | - | 4,113,345 | - | 4,113,345 | | 23 HUATAI G2 | - | 822,900 | - | 822,900 | | 23 HUATAI G3 | - | 2,065,894 | - | 2,065,894 | | 23 HUATAI G4 | - | 4,629,523 | - | 4,629,523 | | 23 HUATAI G5 | - | 4,117,997 | - | 4,117,997 | | 23 HUATAI G6 | - | 1,539,132 | - | 1,539,132 | | 23 HUATAI G7 | - | 2,261,221 | - | 2,261,221 | | 23 HUATAI G8 | - | 1,730,405 | - | 1,730,405 | | 23 HUATAI G9 | - | 713,520 | - | 713,520 | | 23 HUATAI 10 | - | 2,017,583 | - | 2,017,583 | | 23 HUATAI 11 | - | 2,518,935 | - | 2,518,935 | | 23 HUATAI 13 | - | 1,005,417 | - | 1,005,417 | | 23 HUATAI 14 | - | 1,610,427 | - | 1,610,427 | | 23 HUATAI 15 | - | 1,003,315 | - | 1,003,315 | | 23 HUATAI 16 | - | 2,510,029 | - | 2,510,029 | | 23 HUATAI F2 | - | 2,808,118 | - | 2,808,118 | | 23 HUATAI F4 | - | 3,601,796 | - | 3,601,796 | | 20 HUATAI C1 | 5,027,690 | 224,730 | (224,000) | 5,028,420 | | 21 HUATAI C1 | 9,368,951 | 406,728 | (405,000) | 9,370,679 | | HUATAI B2404 | 6,280,411 | - | (6,280,411) | - | | HUATAI B2604 | 3,491,943 | 129,778 | (70,827) | 3,550,894 | | HUATAI B2503 | 7,000,146 | 291,941 | (168,568) | 7,123,519 | | HUATAI B2509 | 3,041,406 | 89,697 | (86,213) | 3,044,890 | | HUATAI B2608 | - | 2,876,402 | - | 2,876,402 | | HUATAI B2611 | - | 5,685,678 | - | 5,685,678 | | Structured notes (1) | 2,119,436 | 1,359,181 | (350,844) | 3,127,773 | | Total | 110,356,589 | 51,308,090 | (46,652,167) | 115,012,512 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 53. Long-term bonds - continued As at 31 December 2023 - continued - 133 - (1) The Company has not issued long-term structured notes for the year ended 31 December 2024 (for the year ended 31 December 2023: 2 tranches). As at 31 December 2024, no long-term structured note due within one year is classified as "Long-term bonds due within one year" (as at 31 December 2023: 2 tranches) (Note 52). 54. Long-term bank loans (a) Analysed by nature: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Unsecured bank loans | - | 647,052 | | Less: credit bank loans due within one year | - | - | | Total | - | 647,052 | (b) Analysed by maturity: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Maturity within five years | - | 647,052 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 134 - 55. Share capital, reserves and retained profits (a) Movements in components of equity The reconciliation between the opening and closing balances of each component of the Group's consolidated equity is set out in the consolidated statement of changes in equity. Details of the changes in the Company's individual components of equity between the beginning and the end of the year are set out below: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Reserves | | | | | | | | | | | Other equity | Treasury | Capital | Surplus | General | Fair value | Translation | Retained | | | | Note | Share capital | instruments | shares | reserve | reserve | reserve | reserve | reserve | profits | Total | | As at 1 January 2024 | | 9,074,663 | 25,700,000 | (1,064,173) | 67,999,460 | 8,838,000 | 17,889,908 | 35,605 | 18,981 | 26,560,769 | 155,053,213 | | Changes in equity for 2024 | | | | | | | | | | | | | Profit for the year | | - | - | - | - | - | - | - | - | 8,890,757 | 8,890,757 | | Other comprehensive income | | - | - | - | - | - | - | 372,834 | - | - | 372,834 | | Total comprehensive income | | - | - | - | - | - | - | 372,834 | - | 8,890,757 | 9,263,591 | | Issue of perpetual subordinated bonds | | - | 2,600,000 | - | (2,698) | - | - | - | - | - | 2,597,302 | | Equity-settled share-based payments | | - | - | 112,478 | 31,852 | - | - | - | - | - | 144,330 | | Acquisition of treasury shares | | (47,361) | - | 851,150 | (803,789) | - | - | - | - | - | - | | Appropriation to surplus reserve | | - | - | - | - | 889,076 | - | - | - | (889,076) | - | | Appropriation to general reserve | | - | - | - | - | - | 1,779,050 | - | - | (1,779,050) | - | | Dividends declared to ordinary | | - | - | - | - | - | - | - | - | (5,236,731) | (5,236,731) | | shareholders for the year | | | | | | | | | | | | | Dividends payable to perpetual | | - | - | - | - | - | - | - | - | (935,130) | (935,130) | | subordinated bonds | | | | | | | | | | | | | Others | | - | - | - | (117) | (14) | (29) | - | - | (100) | (260) | | As at 31 December 2024 | 64 | 9,027,302 | 28,300,000 | (100,545) | 67,224,708 | 9,727,062 | 19,668,929 | 408,439 | 18,981 | 26,611,439 | 160,886,315 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued (a) Movements in components of equity - continued - 135 - | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Reserves | | | | | | | | | | | Other equity | Treasury | Capital | Surplus | General | Fair value | Translation | Retained | | | | Note | Share capital | instruments | shares | reserve | reserve | reserve | reserve | reserve | profits | Total | | As at 1 January 2023 | | 9,075,589 | 19,200,000 | (1,202,324) | 68,927,383 | 7,790,909 | 15,795,052 | 28,164 | 18,981 | 24,000,453 | 143,634,207 | | Adjustments | | - | - | - | - | 419 | 839 | - | - | 2,937 | 4,195 | | As at 1 January 2023 | | 9,075,589 | 19,200,000 | (1,202,324) | 68,927,383 | 7,791,328 | 15,795,891 | 28,164 | 18,981 | 24,003,390 | 143,638,402 | | Changes in equity for 2023 | | | | | | | | | | | | | Profit for the year | | - | - | - | - | - | - | - | - | 10,466,721 | 10,466,721 | | Other comprehensive income | | - | - | - | - | - | - | 7,441 | - | - | 7,441 | | Total comprehensive income | | - | - | - | - | - | - | 7,441 | - | 10,466,721 | 10,474,162 | | Issue of perpetual subordinated bonds | | - | 6,500,000 | - | (7,148) | - | - | - | - | - | 6,492,852 | | Equity-settled share-based payments | | - | - | 130,514 | 72,582 | - | - | - | - | - | 203,096 | | Appropriation to surplus reserve | | - | - | - | - | 1,046,672 | - | - | - | (1,046,672) | - | | Appropriation to general reserve | | - | - | - | - | - | 2,094,017 | - | - | (2,094,017) | - | | Dividends declared to ordinary | | | | | | | | | | | | | shareholders for the year | | - | - | - | - | - | - | - | - | (4,063,223) | (4,063,223) | | Dividends payable to perpetual | | | | | | | | | | | | | subordinated bonds | | - | - | - | - | - | - | - | - | (705,430) | (705,430) | | Others | | (926) | - | 7,637 | (993,357) | - | - | - | - | - | (986,646) | | As at 31 December 2023 | 64 | 9,074,663 | 25,700,000 | (1,064,173) | 67,999,460 | 8,838,000 | 17,889,908 | 35,605 | 18,981 | 26,560,769 | 155,053,213 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued - 136 - (b) Share capital All shares issued by the Company are fully paid common shares. The par value per share is RMB1. The Company's number of shares issued and their nominal value are as follows: | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | As at 31 December 2023 | | | | Number | Nominal | Number | Nominal | | | of shares | value | of shares | value | | | (Thousand) | | (Thousand) | | | Registered, issued and fully paid: | | | | | | A shares of RMB1 each | 7,308,256 | 7,308,256 | 7,355,617 | 7,355,617 | | H shares of RMB1 each | 1,719,046 | 1,719,046 | 1,719,046 | 1,719,046 | | Total | 9,027,302 | 9,027,302 | 9,074,663 | 9,074,663 | On 1 June 2015, the Company completed its initial public offering of 1,400,000,000 H shares on the Main Board of the Hong Kong Stock Exchange. On 19 June 2015, the Company partially exercised the over-allotment option and issued 162,768,800 H shares. According to the relevant requirements of PRC regulators, existing shareholders of the state- owned shares of the Company have transferred an aggregate number of 156,276,880 state-owned shares of the Company to the National Social Security Fund of the PRC, and such shares were then converted into H shares on a one-for-one basis. In July 2018, the Company completed private placement of issuance of 1,088,731,200 new A shares. On 20 June 2019, the Company completed its issuance of 75,013,636 GDRs, representing 750,136,360 underlying A shares, and listed on the London Stock Exchange. On 27 June 2019, the Company exercised the over-allotment option and issued additional 7,501,364 GDRs, representing 75,013,640 underlying A shares. In total, the Company has issued 82,515,000 GDRs, representing 825,150,000 new A shares with nominal value of RMB1.00 each. The total paid-up share capital of the Company after the change was RMB9,076,650,000. In 2022, the Company completed the repurchase and cancellation of 1,060,973 restricted A Shares, after which the Company's registered capital was RMB9,075,589,027 and the total share capital of the Company was 9,075,589,027 shares of RMB1 each. In 2023, the Company completed the repurchase and cancellation of 925,692 restricted A Share, after which the Company's registered capital was RMB9,074,663,335 and the total share capital of the Company was 9,074,663,335 shares of RMB1 each. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued (b) Share capita l - continued - 137 - In January 2024, the Company completed the repurchase and cancellation of 45,278,495 A-share shares stored in the Company's special securities account, after which the Company's registered capital was RMB 9,029,384,840 and the total share capital of the Company was 9,029,384,840 shares of RMB1 each. In September 2024, the Company completed the repurchase and cancellation of 2,082,559 restricted A Share, after which the Company's registered capital was RMB 9,027,302,281 and the total share capital of the Company was 9,027,302,281 shares of RMB1 each. The H shares and GDRs representing A shares rank pari passu in all respects with the existing A shares including the right to receive all dividends and distributions declared or made. (c) Other equity instruments | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Perpetual subordinated bonds | 28,300,000 | 25,700,000 | As approved by the CSRC, the Company issued nine batches of perpetual subordinated bonds ("21 Huatai Y1", "21 Huatai Y2", "21 Huatai Y3", "22 Huatai Y1", "22 Huatai Y2", "22 Huatai Y3","23 Huatai Y1","23 Huatai Y2" and "24 Huatai Y1") with an initial interest rate of 3.85%, 4.00%, 3.80%, 3.49%, 3.59%, 3.20%, 3.46%, 3.58% and 2.39% on 15 September 2021, 26 October 2021, 16 November 2021, 26 January 2022, 11 July 2022, 21 October 2022, 8 September 2023, 20 October 2023 and 26 November 2024, respectively. The perpetual subordinated bonds have no fixed maturity dates and the Company has an option to redeem the bonds at principal amounts plus any accrued interest on the fifth interest payment date or any interest payment date afterwards. The interest rate for perpetual subordinated bonds is fixed in the first 5 years and will be repriced every 5 years. The repriced interest rate is determined as the sum of the current base rate and the initial spread plus 200 or 300bp. The current base rate is defined as the average yield of 5 years treasury from the interbank fixed rate bond yield curve published on China Bond webpage 5 working days before the adjustment. The issuer has the option to defer interest payment, except in the event of mandatory interest payments, so that at each interest payment date, the issuer may choose to defer the interest payment to the next payment date for the current period as well as all interest and accreted interest already deferred, without being subject to any limitation with respect to the number of deferrals. Mandatory interest payment events are limited to dividend distributions to ordinary equity holders and reductions of registered capital. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued (c) Other equity instruments - continued - 138 - As the Company declared dividend distribution to ordinary equity holders during the 2023 annual general meeting held on 20 June 2024, the Company has recognised interest payable to the perpetual subordinated bonds amounted to RMB 935,130 thousand. The perpetual subordinated bonds issued by the Company are classified as equity instruments and presented under equity in the Group's statement of financial position. (d) Treasury shares | | | | | | | --- | --- | --- | --- | --- | | | | | | As at 31 | | | As at 1 January | Increase for | Decrease for | December | | | 2024 | the year | the year | 2024 | | Share repurchase | 835,802 | - | (835,802) | - | | Restricted Share Incentive | | | | | | Scheme of A Shares | 228,371 | - | (127,826) | 100,545 | | Total | 1,064,173 | - | (963,628) | 100,545 | On 24 November 2023, the Company held 2023 Second Extraordinary General Meeting, 2023 Third A Share Class Meeting and 2023 Third H Share Class Meeting, where the resolution on " The Company's Cancellation of Repurchased A shares and Reduction of Registered Capital " was considered and approved. It was agreed that the Company would cancel the remaining repurchased A shares totaling 45,278,495 shares and accordingly reduce the registered capital. On 10 January 2024, the Company completed the cancellation of the repurchased A shares, reducing the share capital and registered capital by RMB45.28 million, reducing the capital reserve by RMB790.52 million, and reducing the treasury shares by RMB835.80 million. On 12 April 2024, the Board and the Supervisory Committee of the Company respectively considered and approved the Resolution on Repurchase and Cancellation of Part of the Restricted A Shares by the Company. Based on the achievement of performance conditions at the company level and individual level, the total number of restricted shares that could be unlocked this time was 13,269,954 shares, which became floating shares not subject to selling restrictions on 16 May 2024, and shares subject to selling restrictions was reduced to 16,008,438 Shares in total. According to the Restricted Share Incentive Scheme of A Shares Plan, the share repurchase's obligation was reduced accordingly by RMB103.51 million. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued (d) Treasury shares - continued - 139 - On 20 June 2024, pursuant to the decision of the 2023 Annual General Meeting, the annual profit distribution was carried out in the form of cash dividends. A cash dividend of RMB4.30 (tax included) per 10 shares was distributed to the shareholders. The company's cash dividends for the 2023 fiscal year were paid on August 16, 2024. In accordance with the rules of the Restricted Share Incentive Scheme of A Shares, the share repurchase obligation was reduced by RMB6.88 million accordingly. On 20 June 2024, the 2023 annual general meeting of shareholders of Huatai Securities Co., Ltd., the First A share Shareholders' Meeting in 2024 and the First H share Shareholders' Meeting in 2024 reviewed and approved the "Proposal on the Company's Repurchase and Cancellation of Part of A share Restricted Shares". A total of 2,082,559 A share restricted stocks that had been granted but not yet released from the restricted sale status by 175 incentive targets were repurchased and cancelled. The repurchase price was RMB7.37 per share, and the obligation for stock repurchase was correspondingly reduced by RMB15.35 million. On 30 August 2024, according to the resolution of the 12th meeting of the 6th session of the Board of Directors, the Company's interim profit distribution in 2024 was carried out in the form of cash dividends, with a cash dividend of RMB0.15 per share (tax included) distributed. The Company's interim cash dividends in 2024 were paid on October 25, 2024. According to the rules of the Restricted Share Incentive Scheme of A Shares, the obligation for this stock repurchase was correspondingly reduced by RMB2.09 million. (e) Capital reserve Capital reserve mainly includes share premium arising from the issuance of new shares at prices in excess of face value and the difference between the considerations of acquisition of equity interests from non-controlling shareholders and the carrying amount of the proportionate net assets. (f) Surplus reserve Pursuant to the Company Law of the PRC, the Company is required to appropriate 10% of its net profit to the statutory surplus reserve until the balance reaches 50% of its registered capital. Subject to the approval of the shareholders, the statutory reserve may be used to offset accumulated losses, or converted into capital of provided that the balance of the statutory surplus reserve after such capitalisation is not less than 25% of the registered capital immediately before the capitalisation. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued - 140 - (g) General reserve General reserve includes general risk reserve and transaction risk reserve. In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of Securities Companies in 2007 (Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007, the Company appropriates 10% of its annual net profit to the general risk reserve. In accordance with the requirements of the CSRC Circular regarding the Annual Reporting of Securities Companies in 2007 (Zhengjian Jigou Zi [2007] No. 320) issued on 18 December 2007 and in compliance with the Securities Law, for the purpose of covering securities trading losses, the Company appropriates 10% from its annual net profit to the transaction risk reserve. In accordance with the requirements of the CSRC No. 94 Provisional Measures on Supervision and Administration of Risk Provision of Public Offering of Securities Investment Funds, the Company appropriates 2.5% from its fund custody fee income to the general risk reserve. The Company's subsidiaries appropriate their profits to the general reserve according to the applicable local regulations. (h) Fair value reserve The fair value reserve comprises: - The cumulative net changes in the fair value of equity securities designated at FVOCI; and - The cumulative net changes in fair value of debt securities at FVOCI until the assets are derecognised or reclassified. This amount is adjusted by the amount of loss allowance. (i) Cash flow hedges reserve The cash flow hedges reserve comprises the effective portion of the gain or loss on the hedging instrument. (j) Translation reserve The translation reserve mainly comprises foreign currency differences arising from the translation of the financial statements of foreign operations. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 55. Share capital, reserves and retained profits - continued - 141 - (k) Dividends Pursuant to the resolution of the general meeting of the shareholders dated 20 June 2024, the Company was approved to distribute cash dividends of RMB4.30 (tax inclusive) per 10 shares to the shareholders based on 9,029,384,840 shares, with total cash dividends amounting to RMB3,883 million(tax inclusive). The cash dividends of the Company were paid on 16 August 2024. Approved at the 12th meeting of the sixth session of the board of directors on 30 August 2024, the Company resolved to distribute an interim cash dividend for 2024. Based on the total share capital of 9,027,302,281 shares outstanding prior to the implementation of the plan, a cash dividend of RMB 0.15 per share (tax inclusive) will be distributed, amounting to a total cash distribution of RMB1,354 million (tax inclusive). The interim cash dividends of the Company were paid on 25 October 2024. 56. Commitments (a) Capital commitments Capital commitments outstanding at 31 December 2024 and 31 December 2023 not provided for in the consolidated financial statements were as follows: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Contracted, but not provided for | 7,174,588 | 7,156,300 | The aforementioned capital commitments mainly represent securities underwriting commitments, subscribed capital contributions to funds, construction of properties and purchase of equipment of the Group. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 142 - 57. Interests in structured entities (a) Interests in structured entities consolidated by the Group Structured entities consolidated by the Group mainly stand for the asset management schemes where the Group involves as manager and / or as investor. The Group assesses whether the combination of investments it holds together with its remuneration creates exposure to variability of returns from the activities of the asset management schemes to a level of such significance that it indicates that the Group is a principal. As at 31 December 2024, the Group consolidates 55 structured entities (as at 31 December 2023: 59 structured entities), which are mainly asset management schemes. As at 31 December 2024, the total assets of the consolidated structured entities are RMB 35,723 million (as at 31 December 2023: RMB94,908 million), and the carrying amount of interests held by the Group in the consolidated structured entities are RMB 32,309 million (as at 31 December 2023: RMB86,408 million). For the year ended 31 December 2024 and year ended 31 December 2023, the Group did not provide financial support to these structured entities. (b) Interests in structured entities sponsored by the Group but not consolidated Structured entities for which the Group served as general partner or manager, therefore has power over them during the reporting periods are asset management schemes. Except for the structured entities that the Group has consolidated as set out in Note 57(a), the Group's exposure to the variable returns in the remaining structured entities in which the Group has interests is not significant. Besides, the Group did not provide financial support to these structured entities. The Group therefore did not consolidate these structured entities. As at 31 December 2024, the total assets of these unconsolidated structured entities managed by the Group amounted to RMB 621,057 million(as at 31 December 2023: RMB530,502 million). As at 31 December 2024, the carrying amount of interests held by the Group in these unconsolidated structured entities are RMB 6,252 million(as at 31 December 2023: RMB7,101 million). During the year ended 31 December 2024, the Group's profit or loss from these unconsolidated structured entities including asset management fee and commission income and net investment losses, amounted to a total gain of RMB 513 million (during the year ended 31 December 2023: asset management fee and commission income and net investment gains amounted to a total gain of RMB1,576 million) ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 57. Interests in structured entities - continued - 143 - (c) Interests in structured entities sponsored by third party institutions The types of structured entities sponsored by third party institutions that the Group does not consolidate but in which it holds interests include funds, asset management schemes, trust schemes, and wealth management products issued by banks or other financial institutions. The nature and purpose of these structured entities are to generate fees from managing assets on behalf of investors. These vehicles are financed through the issue of units to investors. The carrying amount of the related accounts in the consolidated statements of financial position is equal to the maximum exposure to loss of interests held by the Group in the unconsolidated structured entities sponsored by third party institutions as at 31 December 2024 and 31 December 2023, which are listed as below: | | | | | --- | --- | --- | | | As at 31 December 2024 | | | | Financial assets | | | | at FVTPL | Total | | Funds | 60,952,406 | 60,952,406 | | Wealth management products | 7,300,893 | 7,300,893 | | Debt securities | 383,852 | 383,852 | | Total | 68,637,151 | 68,637,151 | | | | | | --- | --- | --- | | | As at 31 December 2023 | | | | Financial assets | | | | at FVTPL | Total | | Funds | 60,597,720 | 60,597,720 | | Wealth management products | 22,714,060 | 22,714,060 | | Debt securities | 460,035 | 460,035 | | Total | 83,771,815 | 83,771,815 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 144 - 58. Outstanding litigations From time to time in the ordinary course of business, the Group is subject to claims and are parties to legal and regulatory proceedings. As at 31 December 2024 and 31 December 2023, based on the court rulings and advices from legal representatives and management judgement, provision had been made to the claim amounts for the major legal action as listed below. During the year of 2020, the Group's subsidiary Huatai United Securities Co., Ltd. received the Notice of Legal Action and relevant litigation materials sent by Shanghai Financial Court. The plaintiff, Postal Savings Bank of China Co., Ltd., failed to fully cash its investment in "Huatai Magnate Light Asset-backed Securities", sued to the Court to require the manager (the first defendant), the legal adviser (the second defendant), the rating agency (the third defendant), the issuer (the fourth defendant) and Huatai United Securities Co., Ltd., the financial adviser (the fifth defendant), to bear joint and several liability for the compensation for the plaintiff's investment loss of RMB527 million and relevant interest. The Shanghai Financial Court made the judgment of the first instance on 14 April 2023 that Huatai United Securities Co., Ltd. shall bear joint and several liability. Huatai United Securities Co., Ltd. submitted an application for appeal, the second-instance trial officially commenced on 26 December 2024, but no verdict has been rendered as of the approval and issuance date of the financial statements. According to the opinion of the legal representative and the judgment of the management, the Group has accrued provision amounting to RMB 675 million for the claim amount. During the year of 2024, Zhejiang Securities Co., Ltd. and Zhejiang Securities Asset Management Co., Ltd. filed a tort liability dispute lawsuit against Huatai United Securities Co., Ltd. and the manager, alleging that the defendants' improper performance of duties resulted in substantial losses. The plaintiffs claim joint and several liability for compensation of investment principal and interest totaling RMB 142 million. The case is currently under trial. According to the opinion of the legal representative and the judgment of the management, the Group has accrued provision amounting to RMB 71 million for the claim amount. As of December 31, 2024, except for the aforementioned cases, the Group is not involved in any other legal proceedings or arbitrations for which an unfavorable judgment, ruling, or decision, if rendered, would reasonably be expected to result in a material adverse effect on the Group’s financial position or operating results. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 145 - 59. Related party relationships and transactions (a) Relationship of related parties (i) Major shareholders | | | | | | | --- | --- | --- | --- | --- | | | Place of | Registered | Percentage of | Voting | | Name of the shareholders | registration | share capital | equity interest (%) | rights (%) | | Jiangsu Guoxin | | | | | | Investment Group Limited | Nanjing | RMB50 billion | 15.21 | 15.21 | | Jiangsu Communications | | | | | | Holdings Co., Ltd. | Nanjing | RMB16.8 billion | 5.42 | 5.42 | The detailed information of the transactions and balances with Group's major shareholders and their subsidiaries is set out in Note 59(b)(i). (ii) Subsidiaries of the Group The detailed information of the Group's subsidiaries is set out in Note 24. (iii) Associates of the Group The detailed information of the Group's associates is set out in Note 25. (iv) Joint ventures of the Group The detailed information of the Group's joint ventures is set out in Note 26. (v) Other related parties Other related parties are individuals which include: members of the Board of Directors, the Board of Supervisors and senior management, and close family members of such individuals. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 59. Related party relationships and transactions - continued - 146 - (b) Related parties transactions and balances Other than as disclosed elsewhere in these consolidated financial statements, the Group had the following related party transactions and balances: (i) Transactions and balances between the Group and major shareholders and their subsidiaries: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Balances at the end of the year: | | | | Right-of-use assets | 142 | - | | Other receivables and prepayments | 43 | 43 | | Financial assets at FVTPL | - | 138,331 | | Accounts payable to brokerage clients | 327,636 | 14,389 | | Other payables and accruals | 3,211 | 3,211 | | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Transactions during the year: | | | | Fee and commission income | 9,064 | 20,769 | | Net investment gains | 703 | 2,162 | | Operating expense | (3,237) | (199) | During the year of 2024, the Group has not subscribed the bonds issued by major shareholders (during the year of 2023: RMB138 million) . During the year of 2024, the Group has redeemed the bonds issued by major shareholders amounting to RMB91 million(during the year of 2023: RMB53 million). During the year of 2024, the Group has paid rental fee to major shareholders and their subsidiaries for the total amounts of RMB0.18 million(During the year of 2023: nil). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 59. Related party relationships and transactions - continued (b) Related parties transactions and balances - continued - 147 - (ii) Transactions and balances between the Group and associates: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Balances at the end of the year: | | | | Cash and bank balances | 1,240,337 | 1,244,329 | | Right-of-use assets | 66,870 | 17,489 | | Accounts receivable | 109,501 | 111,881 | | Other receivables and prepayments | 3,204 | 2,828 | | Financial assets at FVTPL | 30,559 | 50,510 | | Accounts payable to brokerage clients | 77,858 | 96,223 | | Other payables and accruals | 378 | 1,893 | | Placements from other financial institutions | - | 1,000,383 | | Lease liabilities | 68,342 | 19,078 | | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Transactions during the year: | | | | Fee and commission income | 244,139 | 311,402 | | Fee and commission expenses | (777) | (682) | | Other income and gains | 3,233 | 2,600 | | Operating expense | (546) | (2,302) | | Interest income | 34,704 | 23,979 | | Interest expenses | (12,413) | (17,544) | | Net investment losses | 3,491 | 7,710 | During the year of 2024, the Group has subscribed the corporate bond issued by associates for the total amounts of RMB31 million (during the year of 2023: RMB51 million). During the year of 2024, the associates have subscribed the non-public corporate bonds issued by the Group for RMB51 million (during the year of 2023: nil). During the year of 2024, the capital injection made by the Group into the associates are RMB 211 million (during the year of 2023: RMB1,438 million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 59. Related party relationships and transactions - continued (b) Related parties transactions and balances - continued (ii) Transactions and balances between the Group and associates: - continued - 148 - During the year of 2024, the divestment made by the Group from the associates are RMB50 million (during the year of 2023: RMB177 million). During the year of 2024, the Group has made repurchase agreements with associates for the total amount of RMB81,389 million (during the year of 2023: RMB89,406 million). During the year of 2024 , the Group has taken placements from other financial institutions with associates for the total amount of RMB20,500 million (during the year of 2023: RMB89,320 million). During the year of 2024, the Group has received dividends from associates for the total amounts of RMB 1,038 million (during the year of 2023: RMB1,634 million). During the year of 2024, the Group has paid rental fee to associates for the total amounts of RMB 31 million (during the year of 2023: RMB40 million). (iii) Transactions and balances between the Group and joint ventures: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Balances at the end of the year: | | | | Accounts receivable | 8,168 | - | | Accounts payable to brokerage clients | 70,950 | 2,885 | | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Transactions during the year: | | | | Fee and commission income | 15,772 | 8,525 | During the year of 2024, the capital injection made by the Group into the joint ventures are RMB75 million (during the year of 2023: RMB182 million). During the year of 2024, the divestment made by the Group from the joint ventures are RMB 34 million (during the year of 2023: RMB171 million). During the year of 2024, the Group has not received dividends from joint venture (during the year of 2023: RMB22million). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 59. Related party relationships and transactions - continued (b) Related parties transactions and balances - continued - 149 - (iv) Transactions and balances between the Group and other related parties: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Balances at the end of the year: | | | | Accounts payable to brokerage clients | 939 | 5,002 | | | Year ended 31 December | | | | 2024 | 2023 | | Transactions during the year: | | | | Fee and commission income | 154 | 77 | (c) Key management personnel remuneration During the year ended 31 December 2024, the pre-tax remuneration of current year accrued and paid to key management personnel of the Company amounted to RMB18.69 million, the total compensation packages of the key management personnel for the fiscal year 2024 have not been finalised and will be further disclosed when they are confirmed (the total finalised compensation packages of the key management personnel for the fiscal year 2023 amounted to RMB48.67 million). This amount includes those payable to the Company's directors and supervisors as disclosed in Note 16. For the year ended 31 December 2024, the post-employment benefits of the key management personnel amounted to RMB2.71 million (for the year ended 31 December 2023: RMB2.61 million). (d) Applicability of the Listing Rules relating to connected transactions The related party transactions set out in Note 59(b) which constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules are exempt from the disclosure requirements in Chapter 14A of the Listing Rules as they are below the de minimis threshold under Rule 14A.76(1) and 14A.93. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 150 - 60. Segment reporting Management manages the business operations by the following segments in accordance with the nature of the operations and the services provided, and the performance measure of business segments utilised by the Group is profit before income tax: - The wealth management segment engages in the trading of stocks, funds, bonds and futures on behalf of clients, to provide customers with a variety of financial products sales services and asset allocation services. Moreover, the activities of providing margin financing, securities lending, securities-backed lendings and sell financial products are included in this segment. - The institutional services segment mainly provides investment banking business to clients, research and institutional sales, equity securities investments and transactions, fixed income investments and transactions, OTC financial products and transactions. - The investment management segment mainly consists of asset management, private equity investment, alternative investments and commodities trading and arbitrage. - The international business segment mainly includes the overseas business of overseas subsidiaries. - Other segments include other operations of head office, mainly including interest income, share of profit of associates and joint ventures, interest expenses of working capitals, and costs and expenses of middle offices and back offices. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 60. Segment reporting - continued - 151 - (a) Business segments For the year ended 31 December 2024 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Wealth | Institutional | Investment | International | | | | | management | services | management | business | Others | Total | | Revenue | | | | | | | | - External | 19,091,303 | 8,254,568 | 2,444,882 | 14,038,765 | 1,491,570 | 45,321,088 | | - Inter-segment | 1,938 | - | - | - | 744,617 | 746,555 | | Other income and gains | 4,715,500 | (85,012) | 214,965 | 4,154,850 | 33,309 | 9,033,612 | | Segment revenue and other | | | | | | | | income | 23,808,741 | 8,169,556 | 2,659,847 | 18,193,615 | 2,269,496 | 55,101,255 | | Segment expenses | (17,586,912) | (7,172,421) | (1,530,117) | (11,260,104) | (4,569,796) | (42,119,350) | | Segment operating profit / (loss) | 6,221,829 | 997,135 | 1,129,730 | 6,933,511 | (2,300,300) | 12,981,905 | | Share of profit of associates and | | | | | | | | joint ventures | - | 25 | (767,099) | 8,641 | 3,112,386 | 2,353,953 | | Profit before income tax | 6,221,829 | 997,160 | 362,631 | 6,942,152 | 812,086 | 15,335,858 | | Interest income | 9,364,162 | 1,378,940 | 125,641 | 1,629,306 | 1,368,675 | 13,866,724 | | Interest expenses | (2,981,624) | (3,254,880) | (460,188) | (3,125,104) | (1,367,324) | (11,189,120) | | Depreciation and amortisation | | | | | | | | expenses | (542,946) | (188,263) | (71,322) | (403,144) | (602,981) | (1,808,656) | | Net reversal of / (provision for) | | | | | | | | impairment loss on financial | | | | | | | | assets | (194,720) | 5,011 | (1,503) | (38,485) | (16,572) | (246,269) | | Segment assets | 327,720,741 | 241,651,881 | 42,330,013 | 140,070,224 | 165,201,418 | 916,974,277 | | Additions to non-current | | | | | | | | segment assets during the year | 151,125 | 222,101 | 21,756 | 257,846 | 1,035,017 | 1,687,845 | | Segment liabilities | (322,892,047) | (237,296,888) | (18,742,412) | (117,355,571) | (28,793,438) | (725,080,356) | For the year ended 31 December 2023 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Wealth | Institutional | Investment | International | | | | | management | services | management | business | Others | Total | | Revenue | | | | | | | | - External | 19,338,998 | 10,618,400 | 3,040,257 | 10,405,808 | 1,823,151 | 45,226,614 | | - Inter-segment | 539 | - | | - | 1,778,984 | 1,779,523 | | Other income and gains | 3,985,258 | (69,048) | 318,566 | 2,535,500 | 342,500 | 7,112,776 | | Segment revenue and other | | | | | | | | income | 23,324,795 | 10,549,352 | 3,358,823 | 12,941,308 | 3,944,635 | 54,118,913 | | Segment expenses | (16,634,272) | (7,907,900) | (1,589,098) | (10,648,760) | (4,697,057) | (41,477,087) | | Segment operating profit / (loss) | 6,690,523 | 2,641,452 | 1,769,725 | 2,292,548 | (752,422) | 12,641,826 | | Share of profit of associates and | | | | | | | | joint ventures | - | (58) | 30,034 | (21,713) | 2,576,521 | 2,584,784 | | Profit before income tax | 6,690,523 | 2,641,394 | 1,799,759 | 2,270,835 | 1,824,099 | 15,226,610 | | Interest income | 10,574,301 | 1,265,381 | 162,001 | 1,242,067 | 1,700,094 | 14,943,844 | | Interest expenses | (4,349,186) | (3,554,129) | (503,181) | (3,787,857) | (1,828,237) | (14,022,590) | | Depreciation and amortisation | | | | | | | | expenses | (546,262) | (201,901) | (85,673) | (457,062) | (598,367) | (1,889,265) | | Net reversal of / (provision for) | | | | | | | | impairment loss on financial | | | | | | | | assets | 485,571 | (9,051) | (110) | (44,423) | (21,041) | 410,946 | | Segment assets | 285,438,957 | 351,844,346 | 28,552,772 | 185,801,651 | 185,514,044 | 1,037,151,770 | | Additions to non-current | | | | | | | | segment assets during the year | 183,050 | 117,929 | 1,823 | 379,242 | 889,528 | 1,571,572 | | Segment liabilities | (280,739,909) | (347,319,611) | (5,705,664) | (166,977,124) | (54,192,030) | (854,934,338) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 60. Segment reporting - continued (a) Business segments - continued - 152 - Reconciliations of segment revenues, profit or loss, assets and liabilities: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Revenue | | | | Total revenue, gains and other income for segments | 55,101,255 | 54,118,913 | | Elimination of inter-segment revenue | (815,772) | (1,858,492) | | Consolidated revenue, gains and other income | 54,285,483 | 52,260,421 | | Profit | | | | Total profit before income tax for segments | 15,335,858 | 15,226,610 | | Elimination of inter-segment profit | 16,482 | (1,021,946) | | Consolidated profit before income tax | 15,352,340 | 14,204,664 | | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Assets | | | | Total assets for segments | 916,974,277 | 1,037,151,770 | | Elimination of inter-segment assets | (102,703,783) | (131,643,381) | | Consolidated total assets | 814,270,494 | 905,508,389 | | Liabilities | | | | Total liabilities for segments | (725,080,356) | (854,934,338) | | Elimination of inter-segment liabilities | 102,703,783 | 131,643,381 | | Consolidated total liabilities | (622,376,573) | (723,290,957) | For the year ended 31 December 2024 and 31 December 2023, the Group's customer base is diversified and no customer had transactions which exceeded 10% of the Group's revenue. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 60. Segment reporting - continued - 153 - (b) Geographical information The following table sets out information about the geographical location of (i) the Group's revenue from external customers and (ii) the Group's property and equipment, investment properties, goodwill, land-use rights and other intangible assets, interest in associates, interest in joint ventures and other non-current assets ("specified non-current assets"). The geographical location of customers is based on the location at which the services were provided. The geographical location of the specified non-current assets is based on the physical location of the asset, in the case of property and equipment and other non-current assets, the location of the operation to which they are allocated, in the case of goodwill, land-use rights and other intangible assets, and the location of operations, in the case of interest in associates and interest in joint ventures. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Year ended 31 December 2024 | | | Year ended 31 December 2023 | | | | | Mainland | | | Mainland | | | | | China | Overseas | Total | China | Overseas | Total | | Revenue from external customers | 31,282,323 | 14,038,765 | 45,321,088 | 34,820,806 | 10,405,808 | 45,226,614 | | Other income and gains | 4,809,545 | 4,154,850 | 8,964,395 | 4,498,307 | 2,535,500 | 7,033,807 | | Total | 36,091,868 | 18,193,615 | 54,285,483 | 39,319,113 | 12,941,308 | 52,260,421 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Year ended 31 December 2024 | | | Year ended 31 December 2023 | | | | | Mainland | | | Mainland | | | | | China | Overseas | Total | China | Overseas | Total | | Specified non-current assets | 30,727,297 | 718,465 | 31,445,762 | 28,603,135 | 10,054,267 | 38,657,402 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 154 - 61. Financial instruments and risk management (a) Risk management policies and structure (i) Risk management policies In order to enhance the Group's scientific, standardised and effective management and operation, strengthen the capability of defending against risks and ensure the continuous, stable and rapid development of the Group's businesses, the Group had formulated the Basic System for Risk Management which had been deliberated and approved by the Board of Directors in accordance with the Securities Law of the People's Republic of China, the Rules on Supervision over Securities Companies, the Guidelines on the Internal Control of Securities Companies, the Regulation on Comprehensive Risk Management of Securities Companies and other relevant regulations in combination with the business operation and business management. This has clarified the risk management objectives and principles, the risk appetite and risk tolerance level of the Group as a whole and for different risk types, the risk management procedures, and the relevant resource assurance and appraisal mechanisms. In terms of operation management, the Group had formulated and issued various professional risk management guidelines to clearly establish the management processes and measures, risk indicators and limits for various types of risks; in addition, the Group had also formulated policies such as the Administration Measures for Risk Control Indicators, the Rules on the Risk Management of Subsidiaries, the Implementation Plan for Stress Test and the Detailed Implementation Rules for Stress Test at the operation level. In the specific business level, the Group had established business risk management system or risk management manual based on the risk points of different business areas and business management lines. The principal types of risk faced by the Group in daily operation mainly include market risk, credit risk, liquidity risk, operational risk, information technology risk, reputational risk, model risk, compliance risk, legal risk, money laundering risk and integrity risk, etc. The Group had formulated corresponding policies and procedures to identify and analyse these risks, and set up risk indicators, risk limits and internal risk control processes in combination with the actual circumstances with a view to continuously manage the above risks through the support of information systems and effective mechanisms. Risk management is a shared responsibility of all the Group's employees. The Group continuously enhances the risk management awareness and risk sensitivity of all its employees through training and assessment to cultivate the risk management culture. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (a) Risk management policies and structure - continued - 155 - (ii) Risk governance structure The risk management structure of the Company covers five major parts: The Board and its Compliance and Risk Management Committee, Board of Supervisors, Business Operation Management and Risk Control Committee, Risk Management Department and various risk management departments as well as other departments, branches and subsidiaries. The Board of Directors takes ultimate responsibilities for the Company's comprehensive risk management. The Compliance and Risk Management Committee is set up by the Board to review and make recommendations on the overall risk management targets, fundamental policies; and evaluate and make recommendations on the risks of major decisions which require the Board's review as well as the solutions to these major risks; and review and make recommendations on risk assessment reports which require the Board's review. The Board of Supervisors is responsible for the supervision of overall risk management, supervising and examining the Board and the management on the performance of their risk management duties and urging them to make rectifications. Based on the authorisation and approval of the Board and in combination with the operational targets of the Company, the management is specifically responsible for the implementation of risk management activities, with the Risk Control Committee established under it. The Chief Risk Officer of the Company is responsible for leading the overall risk management initiatives. The Risk Management Department is charged with comprehensive risk management duties. It reports to the management and is responsible for managing the overall risks of the Company, taking the lead in managing market risk, credit risk and operational risk. Relevant functional departments of the Company are responsible for taking the lead in managing other types of risks according to their responsibilities and positioning. Other departments, branches and subsidiaries of the Company are responsible for the management of risks in respective lines, implementing policies, procedures and measures formulated by the Company and risk management departments, accepting the guidance from risk management departments and the decomposition of risk management and implementation responsibilities by the risk management departments. The Audit Department is responsible for conducting independent and objective reviews and evaluations of the comprehensiveness and effectiveness of the risk management, and is also in charge of leading or entrusting external professional institutions to regularly assess the company's comprehensive risk management system. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued - 156 - (b) Credit risk management Credit risk refers to the risk of loss of the Company resulting from the default of borrowers or bond issuer or counterparty (customer). The Company has established a credit risk management system covering self-owned capital and entrusted funding business. The system is applied to all subsidiaries domestic or overseas, and also to the sub-subsidiaries managed with reference to the subsidiary's management approach, thereby achieving full credit risk management coverage. The Group mainly faced three types of credit risks, namely (i) the risks of suffering from loss in respect of the financing bills and interest lent out due to borrower's default in financing business; (ii) the risks caused by default of the issuer in bond investment business; (iii) the risks of assets suffering from loss due to the default by the counterparty in transaction business (including guarantee settlement business). With respect to credit risk management of financing business, the Group implemented stringent control measures through continuous monitoring for risky customers and risky assets and timely risk mitigation. The Company intensified the dynamic counter-cyclical adjustment mechanism, established a market systemic risk monitoring and handling mechanism and strengthened the post-credit management of related businesses, in order to control routine business risks, prevent bottom-line risks and flexibly adjust the business structure. With respect to credit risk management of issuers, the Company established a unified monitoring management system for issuers to realize the unified monitoring of credit bond targets for the Company's various businesses. In the meantime, the Company deepened the credit bonds' risk management and control in the whole process, established a screening and disposal mechanism of normalization for risky securities, and continuously to strengthen the monitoring and early warning mechanism of bond positions, thereby enhancing the effectiveness of the Company's prevention and control capabilities of credit risk. With respect to credit risk management of counterparties, the Company constantly promoted the optimization construction of the unified management system for counterparties, and further strengthened counterparties' credit management in accordance with internal and external public sentiment to strictly control tail risks. For guaranteed settlement business, the Company continued to improve the front-end control of risk indicator design and promoted the establishment of systematic measures, as well as strengthened its risk event handling and risk transmission control capabilities. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued - 157 - The Company continued to optimize and improve its unified credit risk management system, in order to enhance its ability to cope with the complex external credit environment and provide strong risk control guarantee for the development of various credit businesses. During the reporting period, the Company did not experience any major credit risk events, and its businesses operated smoothly. The Group provided credit loss allowances for securities-backed lendings of financial assets sold under repurchase agreements. The Group assessed the continuous repayment, solvency and the collateral to loan ratios of the borrowers to analyse the degree of default risk and identified the three stages of credit loss allowances of the securities-backed lendings assets. The details are as below: | | | | | --- | --- | --- | | Description | Stage of credit loss allowances | | | Collateral to loan ratios above the force liquidation thresholds, | 12-month ECL | Stage 1 | | with no past due days | | | | Collateral to loan ratios above the force liquidation thresholds, | Lifetime ECL-not | Stage 2 | | with less than 90 days past due on its contractual payments | credit impaired | | | Collateral to loan ratios below the force liquidation thresholds but | | | | above 100%, with no past due days | | | | Collateral to loan ratios below the force liquidation thresholds but | | | | above 100%, with less than 90 days past due on its contractual | | | | payments | | | | Collateral to loan ratios below 100% | Lifetime ECL- | Stage 3 | | Collateral to loan ratios above 100%, with more than 90 days past | credit impaired | | | due on its contractual payments | | | | Borrowers in default or lawsuit | | | | Borrowers in significant financial difficulties or about to | | | | bankruptcy or undertaking a financial restructuring | | | The Group set different force liquidation thresholds, normally no less than 130%, for different borrowers and assets. For assets classified under Stage 1 and Stage 2, the Group assessed credit loss allowances using the risk parameters modeling approach that incorporated key parameters inclusive of collateral to loan ratios and past due days. As at 31 December 2024, the average credit loss rate was 0.29% assets classified under Stage 1 and no asset under Stage 2 (as at 31 December 2023, the average credit loss rate was 0.35% assets classified under Stage 1 and no asset under Stage 2). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued - 158 - For credit impaired assets classified under Stage 3, the Group assessed credit loss allowances taking into account the collateral securities under each contract and the financial situation of the borrower. The factors which the Group considered when assessing the credit loss allowances included but not limited to: the industry sector of the borrower, the stock price of the collateral securities, the average daily trading volume of the stock, the percentage of goodwill of the stock issuer, significant risk parameters of the securities, whether the borrowers are the holding shareholders, the liquidity and restriction on sales, the history of blacklist or defaults of the borrower, the total market pledged ratios of the stock, the collateral situation, and the credit enhancement measures implemented by the borrower. The Group assessed the above factors as well as collateral to loan ratios and past due days to evaluate and provide credit loss allowances, ranging from 10% to 100%. For margin accounts receivable, the Group classified the exposures into three stages, considering the collateral coverage ratios as the main indicator, the concentration of positions as the supplementary index, and taking into account the borrowers' continuous repayment, the total balance of margin accounts, the liquidity of the collateral and other relevant information. The Group applied corresponding loss rates for assets at different stages, and calculates the expected credit loss accordingly. As at 31 December 2024, the average credit loss rate was 0.52%, 8.33% and 82.99% for assets classified under Stage 1, 2 and 3, respectively (as at 31 December 2023, the average credit loss rate was 0.55%, 7.53% and 58.30% for assets classified under Stage 1, 2 and 3, respectively). For credit business, when calculating the expected credit loss, the Group identified a number of indicators from three dimensions: macroeconomic indicators, market environment and asset quality, taking into account forward-looking information that can be obtained without unnecessary additional costs or efforts. By constructing the relationship between these specific indicators and the loss rate, forward-looking adjustments were made to the expected credit loss of credit business. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued - 159 - | | | | | | | --- | --- | --- | --- | --- | | | | Stage 2 | Stage 3 | | | | Stage 1 | Lifetime ECL | Lifetime ECL | | | Margin accounts receivable | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL | | As at 1 January, 2024 | 560,203 | 843,096 | 118,048 | 1,521,347 | | Changes in the expected credit losses: | | | | | | — Transfer to Stage 1 | 176,032 | (175,880) | (152) | - | | — Transfer to Stage 2 | - | - | - | - | | — Transfer to Stage 3 | - | (1,067) | 1,067 | - | | — (Credit)/charged to profit or loss | (96,247) | 298,057 | 40,890 | 242,700 | | — Other | 15 | 161 | 1,401 | 1,577 | | As at 31 December 2024 | 640,003 | 964,367 | 161,254 | 1,765,624 | | | | Stage 2 | Stage 3 | | | Financial assets held under | Stage 1 | Lifetime ECL | Lifetime ECL | | | resale agreements | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL | | As at 1 January, 2024 | 17,974 | - | 635,152 | 653,126 | | Changes in the expected credit losses: | | | | | | — Transfer to Stage 1 | - | - | - | - | | — Transfer to Stage 2 | - | - | - | - | | — Transfer to Stage 3 | - | - | - | - | | — Credit to profit or loss | (9,085) | - | (27,070) | (36,155) | | — Other | 29 | - | 2,009 | 2,038 | | As at 31 December 2024 | 8,918 | - | 610,091 | 619,009 | | | | Stage 2 | Stage 3 | | | Debt instruments at fair value through | Stage 1 | Lifetime ECL | Lifetime ECL | | | other comprehensive income | 12m ECL | (not credit impaired) | (credit impaired) | Total ECL | | As at 1 January, 2024 | 39,022 | - | - | 39,022 | | Changes in the expected credit losses: | | | | | | — Transfer to Stage 1 | - | - | - | - | | — Transfer to Stage 2 | - | - | - | - | | — Transfer to Stage 3 | - | - | - | - | | — Credit to profit or loss | (32,659) | - | - | (32,659) | | — Other | (199) | - | - | (199) | | As at 31 December 2024 | 6,164 | - | - | 6,164 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued - 160 - (i) Maximum exposure to credit risk Maximum exposure to credit risk of the Group without taking account of any collateral and other credit enhancements: | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Debt instruments at amortised cost | 47,793,722 | 50,116,812 | | Refundable deposits | 33,451,298 | 40,544,278 | | Accounts receivable | 5,587,233 | 9,743,761 | | Other receivables | 219,195 | 403,399 | | Margin accounts receivable | 132,546,005 | 112,341,094 | | Debt instruments at fair value through other comprehensive | | | | income | 10,135,553 | 16,262,000 | | Financial assets held under resale agreements | 15,228,401 | 12,460,232 | | Financial assets at fair value through profit or loss | 173,544,758 | 199,732,670 | | Derivative financial assets | 9,991,125 | 16,259,881 | | Clearing settlement funds | 11,136,757 | 9,129,266 | | Cash held on behalf of brokerage clients | 170,880,569 | 137,210,295 | | Bank balances | 39,521,272 | 46,296,177 | | Assets classified as held for sale | 10,399 | - | | Total maximum credit risk exposure | 650,046,287 | 650,499,865 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued (i) Maximum exposure to credit risk - continued - 161 - The Group's credit risk exposure of financial instruments for which an ECL allowance is recognised as follows according to the stage of ECL: | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | Lifetime ECL- | Lifetime ECL- | | | | 12-month | not credit | credit | | | Impairment and loss allowance | ECL | impaired | impaired | Total | | Bank balances | 351 | - | - | 351 | | Cash held on behalf of brokerage | | | | | | clients | 15 | - | - | 15 | | Margin accounts receivable | 640,003 | 964,367 | 161,254 | 1,765,624 | | Financial assets held under resale | | | | | | agreements | 8,918 | - | 610,091 | 619,009 | | Accounts receivable | - | 131,600 | 48,624 | 180,224 | | Debt instruments at amortised cost | 5,391 | - | - | 5,391 | | Debt instruments at fair value | | | | | | through other comprehensive | | | | | | income | 6,164 | - | - | 6,164 | | Other receivables and interest | | | | | | receivable | 179 | 61,171 | 706,514 | 767,864 | | Total | 661,021 | 1,157,138 | 1,526,483 | 3,344,642 | | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | Lifetime ECL- | Lifetime ECL- | | | | 12-month | not credit | credit | | | Impairment and loss allowance | ECL | impaired | impaired | Total | | Bank balances | 512 | - | - | 512 | | Margin accounts receivable | 560,203 | 843,096 | 118,048 | 1,521,347 | | Financial assets held under resale | | | | | | agreements | 17,974 | - | 635,152 | 653,126 | | Accounts receivable | - | 115,458 | - | 115,458 | | Debt instruments at amortised cost | 5,499 | - | - | 5,499 | | Debt instruments at fair value | | | | | | through other comprehensive | | | | | | income | 39,022 | - | - | 39,022 | | Other receivables and interest | | | | | | receivable | 393 | 47,358 | 715,714 | 763,465 | | Total | 623,603 | 1,005,912 | 1,468,914 | 3,098,429 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued - 162 - (ii) Risk concentrations The Group's maximum credit risk exposure without taking account of any collateral and other credit enhancements, as categorised by geographical area: | | | | | | --- | --- | --- | --- | | | By geographical area | | | | | | Outside | | | | Mainland | Mainland | | | | China | China | Total | | 31 December 2024 | | | | | Debt instruments at amortised cost | 47,557,179 | 236,543 | 47,793,722 | | Refundable deposits | 25,812,561 | 7,638,737 | 33,451,298 | | Accounts receivable | 2,984,582 | 2,602,651 | 5,587,233 | | Other receivables | 188,154 | 31,041 | 219,195 | | Margin accounts receivable | 130,578,012 | 1,967,993 | 132,546,005 | | Debt instruments at fair value through other | | | | | comprehensive income | 6,692,111 | 3,443,442 | 10,135,553 | | Financial assets held under resale agreements | 9,234,426 | 5,993,975 | 15,228,401 | | Financial assets at fair value through profit or loss | 143,564,589 | 29,980,169 | 173,544,758 | | Derivative financial assets | 4,141,156 | 5,849,969 | 9,991,125 | | Clearing settlement funds | 10,505,924 | 630,833 | 11,136,757 | | Cash held on behalf of brokerage clients | 167,622,790 | 3,257,779 | 170,880,569 | | Bank balances | 23,703,274 | 15,817,998 | 39,521,272 | | Assets classified as held for sale | 10,399 | - | 10,399 | | Total maximum credit risk exposure | 572,595,157 | 77,451,130 | 650,046,287 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (b) Credit risk management - continued (ii) Risk concentrations - continued - 163 - | | | | | | --- | --- | --- | --- | | | By geographical area | | | | | | Outside | | | | Mainland | Mainland | | | | China | China | Total | | 31 December 2023 | | | | | Debt instruments at amortised cost | 49,866,999 | 249,813 | 50,116,812 | | Refundable deposits | 31,882,359 | 8,661,919 | 40,544,278 | | Accounts receivable | 5,447,675 | 4,296,086 | 9,743,761 | | Other receivables | 300,952 | 102,447 | 403,399 | | Margin accounts receivable | 109,994,638 | 2,346,456 | 112,341,094 | | Debt instruments at fair value through other | | | | | comprehensive income | 12,414,774 | 3,847,226 | 16,262,000 | | Financial assets held under resale agreements | 10,787,973 | 1,672,259 | 12,460,232 | | Financial assets at fair value through profit or loss | 169,171,262 | 30,561,408 | 199,732,670 | | Derivative financial assets | 7,966,431 | 8,293,450 | 16,259,881 | | Clearing settlement funds | 6,611,930 | 2,517,336 | 9,129,266 | | Cash held on behalf of brokerage clients | 134,879,413 | 2,330,882 | 137,210,295 | | Bank balances | 29,829,183 | 16,466,994 | 46,296,177 | | Total maximum credit risk exposure | 569,153,589 | 81,346,276 | 650,499,865 | (c) Liquidity risk management Liquidity risk refers to the risk of the Group not being able to obtain sufficient funds at a reasonable cost in time to meet due debts, perform payment obligations and meet the capital requirements of normal businesses. The Group established a fully functional liquidity risk management system to identify, measure, monitor, control and report on its overall liquidity risk to improve the information of liquidity risk management, enhance the capabilities in the identification, measurement and monitoring of liquidity risk, and strengthen the Group ability in addressing liquidity risk. In addition, the Group also established a right-sized liquidity assets reserves based on the risk appetite and maintained sufficient liquidity assets with high quality to ensure the satisfaction of liquidity needs under stressful scenarios in a timely manner. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (c) Liquidity risk management - continued - 164 - The following tables show the details of the remaining contractual maturities at the end of the reporting period of the Group's non-derivative financial liabilities and derivate financial liabilities. Analysis of non-derivative financial liabilities are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on rates current at the end of the reporting period) and the earliest date the Group can be required to pay: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | | | | | | | | More than | More than | More than | | | | | | | Overdue/ | | 1 month but | 3 months but | 1 year but | | | | | | Carrying | repayable on | Less than | less than | less than | less than | More than | | | | Financial Liabilities | amount | demand | 1 month | 3 months | 1 year | 5 years | 5 years | Undated | Total | | Short-term bank loans | 3,362,980 | - | 2,273,870 | 1,087,069 | 12,635 | - | - | - | 3,373,574 | | Short-term debt instruments issued | 28,852,939 | - | 3,197,084 | 5,425,790 | 20,714,438 | - | - | - | 29,337,312 | | Placements from other financial | | | | | | | | | | | institutions | 30,113,661 | - | 28,301,738 | 1,248,620 | 589,441 | - | - | - | 30,139,799 | | Accounts payable to brokerage clients | 184,586,976 | 184,586,976 | - | - | - | - | - | - | 184,586,976 | | Other payables and accruals | 74,656,220 | 72,385,981 | 1,208,179 | 100,843 | 322,785 | 695,835 | 39,217 | - | 74,752,840 | | Financial assets sold under repurchase | | | | | | | | | | | agreements | 121,048,168 | - | 104,293,812 | 6,957,041 | 8,861,069 | 1,185,205 | - | - | 121,297,127 | | Derivative financial liabilities | 10,943,785 | - | 5,216,144 | 2,879,429 | 1,891,877 | 956,016 | 319 | - | 10,943,785 | | Financial liabilities at fair value through | | | | | | | | | | | profit or loss | 40,448,332 | 14,000,834 | 1,596,739 | 1,872,196 | 6,987,017 | 19,736,089 | 1,665,071 | - | 45,857,946 | | Liabilities associated with assets | | | | | | | | | | | classified as held for sale | 13,328 | 8,809 | - | 659 | 1,995 | 2,003 | - | - | 13,466 | | Long-term bonds | 115,458,817 | - | 5,415,400 | 12,933,454 | 28,488,659 | 60,862,797 | 11,717,160 | - | 119,417,470 | | Long-term bank loans | - | - | - | - | - | - | - | - | - | | Total | 609,485,206 | 270,982,600 | 151,502,966 | 32,505,101 | 67,869,916 | 83,437,945 | 13,421,767 | - | 619,720,295 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (c) Liquidity risk management - continued - 165 - | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | | | | | | | | More than | More than | More than | | | | | | | Overdue/ | | 1 month but | 3 months but | 1 year but | | | | | | Carrying | repayable on | Less than | less than | less than | less than | More than | | | | Financial Liabilities | amount | demand | 1 month | 3 months | 1 year | 5 years | 5 years | Undated | Total | | Short-term bank loans | 11,478,573 | - | 7,490,289 | 4,018,259 | 7,226 | - | - | - | 11,515,774 | | Short-term debt instruments issued | 25,475,507 | - | 3,374,114 | 8,108,499 | 14,717,440 | - | - | - | 26,200,053 | | Placements from other financial | | | | | | | | | | | institutions | 39,536,527 | - | 34,236,630 | 2,559,335 | 2,788,710 | - | - | - | 39,584,675 | | Accounts payable to brokerage clients | 144,701,360 | 144,701,360 | - | - | - | - | - | - | 144,701,360 | | Other payables and accruals | 113,825,742 | 110,539,646 | 1,635,576 | 102,104 | 429,774 | 1,164,412 | 85,632 | - | 113,957,144 | | Financial assets sold under repurchase | | | | | | | | | | | agreements | 144,056,149 | - | 126,317,070 | 13,977,152 | 3,486,110 | 2,646,542 | - | - | 146,426,874 | | Derivative financial liabilities | 16,881,641 | - | 9,493,502 | 5,738,758 | 1,300,092 | 335,246 | 14,043 | - | 16,881,641 | | Financial liabilities at fair value through | | | | | | | | | | | profit or loss | 52,671,166 | 18,167,058 | 3,274,374 | 2,928,070 | 9,537,915 | 16,652,468 | 2,495,190 | - | 53,055,075 | | Long-term bonds | 159,816,001 | - | 4,920,750 | 1,085,281 | 43,152,379 | 105,349,249 | 11,717,160 | - | 166,224,819 | | Long-term bank loans | 647,052 | - | - | 10,640 | 31,919 | 733,686 | - | - | 776,245 | | Total | 709,089,718 | 273,408,064 | 190,742,305 | 38,528,098 | 75,451,565 | 126,881,603 | 14,312,025 | - | 719,323,660 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued - 166 - (d) Market risk management Market risk refers to the risk of asset loss for the Company due to fluctuations in risk factors such as stock prices, interest rates, exchange rates, and commodities. The objective of market risk management is to manage and control the market risk within the acceptable range and to maximise the risk adjusted return. (i) Interest rate risk Interest rate risk refers to the risk that movements in market interest rate will cause fluctuation in the Group's consolidated financial position and cash flow. The Group's interest-bearing assets mainly include bank balances, clearing settlement funds, margin accounts receivable, financial assets purchased under resale agreements, refundable deposits and bond investments; interest- bearing liabilities mainly include short-term bank loans, short-term debt instruments issued, placements from other financial institutions, financial assets sold under repurchase agreements, accounts payable to brokerage clients, long-term bonds and long-term bank loans, amongst others. For financial instruments held on the reporting date that expose the Group to fair value interest rate risk, the Group adopts sensitivity analysis as the primary instrument for monitoring interest rate risk. Sensitivity analysis measures the effect of any reasonable and potential changes to the interest rate on the net profits and shareholders' equity under the assumption that all the other variables remain constant. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (i) Interest rate risk - continued - 167 - The following tables indicate the assets and liabilities as at the end of the reporting period by the expected next repricing dates or by maturity dates, depending on which is earlier: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | | | | More than 1 | More than 3 | More than | | | | | | Less than | month but less | months but less | 1 year but | More than | Non-interest | | | Financial assets | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total | | Unlisted investment in a joint venture at fair value | | | | | | | | | through profit or loss | - | - | - | - | - | 208,769 | 208,769 | | Debt instruments at amortised cost | 269,990 | 410,455 | 6,167,119 | 11,747,158 | 28,694,296 | 504,704 | 47,793,722 | | Debt instruments at fair value through other | | | | | | | | | comprehensive income | 624,414 | 866,111 | 5,213,898 | 211,894 | 3,120,396 | 98,840 | 10,135,553 | | Equity instruments at fair value through other | | | | | | | | | comprehensive income | - | - | - | - | - | 125,860 | 125,860 | | Assets classified as held for sale | 10,399 | - | - | - | - | 318,042 | 328,441 | | Financial assets held under resale agreements | 11,559,192 | 292,219 | 3,037,614 | 333,951 | - | 5,425 | 15,228,401 | | Refundable deposits | 2,601,703 | - | - | - | - | 30,849,596 | 33,451,299 | | Accounts receivable | - | - | - | - | - | 5,587,233 | 5,587,233 | | Other receivables | - | - | - | - | - | 219,195 | 219,195 | | Margin accounts receivable | 5,052,293 | 13,443,692 | 110,672,925 | 5,543 | 25,854 | 3,345,698 | 132,546,005 | | Financial assets at fair value through profit or loss | 4,963,918 | 8,073,497 | 43,536,438 | 56,636,854 | 58,353,969 | 129,973,081 | 301,537,757 | | Derivative financial assets | 608,203 | - | - | - | - | 9,382,922 | 9,991,125 | | Clearing settlement funds | 11,136,757 | - | - | - | - | - | 11,136,757 | | Cash held on behalf of brokerage clients | 170,669,083 | - | 46,285 | - | - | 165,201 | 170,880,569 | | Cash and bank balances | 31,727,490 | 5,601,238 | 2,086,303 | - | - | 106,427 | 39,521,458 | | Total | 239,223,442 | 28,687,212 | 170,760,582 | 68,935,400 | 90,194,515 | 180,890,993 | 778,692,144 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (i) Interest rate risk - continued - 168 - | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | | | | | More than 1 | More than 3 | More than | | | | | | Less than | month but less | months but less | 1 year but | More than | Non-interest | | | Financial liabilities | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total | | Short-term bank loans | (2,264,814) | (1,078,575) | (12,428) | - | - | (7,163) | (3,362,980) | | Short-term debt instruments issued | (3,131,010) | (5,316,000) | (20,327,750) | - | - | (78,179) | (28,852,939) | | Placements from other financial institutions | (28,282,608) | (1,236,405) | (575,071) | - | - | (19,577) | (30,113,661) | | Accounts payable to brokerage clients | (184,583,358) | - | - | - | - | (3,618) | (184,586,976) | | Other payables and accruals | (22,999) | (98,381) | (311,290) | (548,288) | (33,657) | (73,641,605) | (74,656,220) | | Financial assets sold under repurchase agreements | (104,041,516) | (6,836,593) | (8,752,065) | (1,176,069) | - | (241,925) | (121,048,168) | | Derivative financial liabilities | (760,937) | - | - | - | - | (10,182,848) | (10,943,785) | | Financial liabilities at fair value through profit or loss | (12,197,346) | (1,872,196) | (6,780,054) | (14,533,439) | (154,610) | (4,910,687) | (40,448,332) | | Liabilities associated with assets classified as | | | | | | | | | held for sale | (8,809) | (626) | (1,920) | (1,973) | - | - | (13,328) | | Long-term bonds | (4,800,000) | (12,188,400) | (26,225,000) | (58,950,280) | (11,300,000) | (1,995,137) | (115,458,817) | | Long-term bank loans | - | - | - | - | - | - | - | | Total | (340,093,397) | (28,627,176) | (62,985,578) | (75,210,049) | (11,488,267) | (91,080,739) | (609,485,206) | | Net interest rate risk exposure | (100,869,955) | 60,036 | 107,775,004 | (6,274,649) | 78,706,248 | 89,810,254 | 169,206,938 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (i) Interest rate risk - continued - 169 - | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | | | | | More than 1 | More than 3 | More than | | | | | | Less than | month but less | months but less | 1 year but | More than | Non-interest | | | Financial assets | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total | | Unlisted investment in a joint venture at fair value | | | | | | | | | through profit or loss | - | - | - | - | - | 380,612 | 380,612 | | Debt instruments at amortised cost | 19,997 | 330,129 | 4,272,515 | 17,004,533 | 27,915,484 | 574,154 | 50,116,812 | | Debt instruments at fair value through other | | | | | | | | | comprehensive income | 66,381 | 276,085 | 704,011 | 12,434,424 | 2,546,873 | 234,226 | 16,262,000 | | Equity instruments at fair value through other | | | | | | | | | comprehensive income | - | - | - | - | - | 124,506 | 124,506 | | Financial assets held under resale agreements | 7,678,941 | 914,662 | 3,716,892 | 128,762 | - | 20,975 | 12,460,232 | | Refundable deposits | 2,726,297 | - | - | - | - | 37,817,981 | 40,544,278 | | Accounts receivable | - | - | - | - | - | 9,743,761 | 9,743,761 | | Other receivables | - | - | - | - | - | 403,399 | 403,399 | | Margin accounts receivable | 34,688,633 | 19,190,616 | 53,851,817 | - | - | 4,610,028 | 112,341,094 | | Financial assets at fair value through profit or loss | 8,006,000 | 11,967,448 | 58,371,182 | 67,122,640 | 49,493,564 | 218,118,550 | 413,079,384 | | Derivative financial assets | 945,881 | - | - | - | - | 15,314,000 | 16,259,881 | | Clearing settlement funds | 9,129,266 | - | - | - | - | - | 9,129,266 | | Cash held on behalf of brokerage clients | 137,161,030 | - | - | - | - | 49,265 | 137,210,295 | | Cash and bank balances | 41,190,662 | 1,853,683 | 3,158,240 | - | - | 93,781 | 46,296,366 | | Total | 241,613,088 | 34,532,623 | 124,074,657 | 96,690,359 | 79,955,921 | 287,485,238 | 864,351,886 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (i) Interest rate risk - continued - 170 - | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | As at 31 December 2023 | | | | | | | More than 1 | More than 3 | More than | | | | | | Less than | month but less | months but less | 1 year but | More than | Non-interest | | | Financial liabilities | 1 month | than 3 months | than 1 year | less than 5 years | 5 years | bearing | Total | | Short-term bank loans | (7,406,019) | (3,964,154) | (7,087) | - | - | (101,313) | (11,478,573) | | Short-term debt instruments issued | (3,311,150) | (7,811,521) | (14,263,031) | - | - | (89,805) | (25,475,507) | | Placements from other financial institutions | (34,219,619) | (2,549,218) | (2,740,314) | - | - | (27,376) | (39,536,527) | | Accounts payable to brokerage clients | (144,695,879) | - | - | - | - | (5,481) | (144,701,360) | | Other payables and accruals | (41,872) | (96,955) | (402,053) | (855,249) | (72,031) | (112,357,582) | (113,825,742) | | Financial assets sold under repurchase agreements | (123,923,219) | (13,897,025) | (3,373,685) | (2,441,046) | - | (421,174) | (144,056,149) | | Derivative financial liabilities | (89,473) | - | - | - | - | (16,792,168) | (16,881,641) | | Financial liabilities at fair value through profit or loss | (17,750,530) | (2,928,070) | (9,333,168) | (16,473,306) | - | (6,186,092) | (52,671,166) | | Long-term bonds | (4,158,100) | (342,743) | (39,774,430) | (101,878,290) | (11,300,000) | (2,362,438) | (159,816,001) | | Long-term bank loans | - | - | - | (647,052) | - | - | (647,052) | | Total | (335,595,861) | (31,589,686) | (69,893,768) | (122,294,943) | (11,372,031) | (138,343,429) | (709,089,718) | | Net interest rate risk exposure | (93,982,773) | 2,942,937 | 54,180,889 | (25,604,584) | 68,583,890 | 149,141,809 | 155,262,168 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (i) Interest rate risk - continued - 171 - For those financial instruments held by the Group which expose the Group to fair value interest rate risk at the end of the reporting period, the Group adopts sensitivity analysis to measure the potential effect of changes in interest rates on the Group's net profit and equity. Assuming all other variables remain constant and without taking into consideration of the management's activities to reduce interest rate risk, interest rate sensitivity analysis is as follows: | | | | | --- | --- | --- | | | Sensitivity of net profit | | | | As at 31 December | | | Move in yield curve | 2024 | 2023 | | Up 100 basis points | (4,343,453) | (3,983,526) | | Down 100 basis points | 4,990,742 | 4,623,149 | | | | | | --- | --- | --- | | | Sensitivity of net equity | | | | As at 31 December | | | Move in yield curve | 2024 | 2023 | | Up 100 basis points | (4,409,516) | (4,147,742) | | Down 100 basis points | 5,058,907 | 4,792,250 | The sensitivity analysis above indicates the instantaneous change in the Group's net profit and equity that would arise assuming that the change in interest rates had occurred at the end of the reporting period and had been applied to re-measure those financial instruments held by the Group which expose the Group to fair value interest rate risk at the end of the reporting period. In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the end of the reporting period, the impact on the Group's net profit and equity is estimated as an annualised impact on interest expense or income of such a change in interest rates. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued - 172 - (ii) Currency risk Currency risk is the risk arising from foreign exchange business of the Group, which is attributable to the fluctuation of foreign exchange rates. Apart from the assets and liabilities held by the Group's overseas subsidiaries which use Hong Kong dollars or U.S. dollars as their functional currency, other assets and liabilities denominated in foreign currencies mainly represent foreign currency cash and bank balances held by domestic enterprises, foreign currency financial assets and liabilities arising from cross-border business, as well as foreign currency financial assets acquired by subsidiaries. In respect of assets and liabilities denominated in foreign currencies such as cash and bank balances, clearing settlement funds, refundable deposits, accounts receivable, cash held on behalf of brokerage clients, accounts payable and long-term bonds that are not accounted for with their functional currency, the Group has ensured that their net risk exposure are maintained at an acceptable level by buying or selling foreign currencies at market exchange rates where necessary to address the short-term imbalances. Assuming all other risk variables remained constant and without consideration of risk management measures undertaken by the Group, a 10% strengthening of the RMB against USD and HKD at the reporting date would have increased / (decreased) the Group's equity and net profit by the amount shown below, whose effect is in RMB and translated using the spot rate at the reporting date: | | | | | --- | --- | --- | | | Sensitivity of net profit | | | | As at 31 December | | | Currency | 2024 | 2023 | | USD | (222,714) | (723,668) | | HKD | (340,754) | (1,591,456) | | | | | | --- | --- | --- | | | Sensitivity of net equity | | | | As at 31 December | | | Currency | 2024 | 2023 | | USD | (222,714) | (723,668) | | HKD | (2,376,794) | (3,276,332) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (ii) Currency risk - continued - 173 - A 10% weakening of the RMB against the USD and HKD at balance date would have had the equal but opposite effect on them to the amounts shown above, on the basis that all other variables remained constant. Due to the above assumptions, the result of sensitivity analysis on exchange rate changes may be different, compared with the actual changes in the Group's net profit and equity of may arise with this. (iii) Price risks The Group is exposed to equity price changes arising from equity investments concluded in financial instruments at fair value through profit or loss and financial assets at fair value through other comprehensive income. Price risk the Group facing is mainly the proportionate fluctuation in the Group's net profits due to the price fluctuation of the financial instruments at fair value through profit or loss and the proportionate fluctuation in the Group's equity due to the price fluctuation of the financial instruments measured at fair value. Sensitivity analysis The analysis below is performed to show the impact on Group's net profit and equity due to change in the prices of equity securities by 10% with all other variables held constant. | | | | | --- | --- | --- | | | Sensitivity of net profit | | | | As at 31 December | | | | 2024 | 2023 | | Increase by 10% | 5,421,007 | 7,169,444 | | Decrease by 10% | (5,421,007) | (7,169,444) | | | | | | --- | --- | --- | | | Sensitivity of net equity | | | | As at 31 December | | | | 2024 | 2023 | | Increase by 10% | 5,430,614 | 7,178,930 | | Decrease by 10% | (5,430,614) | (7,178,930) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (d) Market risk management - continued (iii) Price risks - continued - 174 - The sensitivity analysis indicates the instantaneous change in the Group's net profit and equity that would arise assuming that the changes in the stock market index or other relevant risk variables had occurred at the end of the reporting period and had been applied to re-measure those financial instruments held by the Group which expose the Group to equity price risk at the end of the reporting period. It is also assumed that the fair values of the Group's equity investments would change in accordance with the historical correlation with the relevant stock market index or the relevant risk variables, and that all other variables remain constant. The analysis is performed on the same basis for 2024 and 2023. (e) Operational risk management Operational risk refers to the risk on the Company's losses caused by inadequate or problematic internal procedures, staff, system or external events, which lead to inefficient internal procedures, mistakes of staff in operation or failure to strictly enforce the established procedures. The Risk Management Department takes the lead in managing the operational risk of the Group. Each department, business department and subsidiary actively perform the operational risk management in their respective lines and are responsible for the management effect, and bear the first responsibility. The Company adopts technological measures to prevent the emergence of operational risks in different business and management procedures as well as key segments, whilst at the same time strengthens process controls, to ensure effective implementation of operational risk management policies and systems. The Group carries out self-assessment of risk and control, monitoring of key risk indicators and gathering of loss data as additional approaches to strengthen the management of operational risks. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (e) Operational risk management - continued - 175 - Based on the Basic Standard for Enterprise Internal Control jointly issued by the Ministry of Finance, the CSRC, the National Audit Office and the Former China Banking and Insurance Regulatory Commission as well as its supporting guidelines and the relevant requirements of the regulatory authorities and the Company, the Group has developed the risk-based internal control standards and carried out relevant continuous improvement initiatives. It has combined the self- assessment of operational risk with the self-assessment of internal controls; comprehensively sorted out and evaluated the inherent risks and control activities in various business processes; tested the effectiveness of control design and implementation; rectified the internal control weaknesses; comprehensively sorted out and optimised various business segments, systems and processes of the Group in order to ensure that the Group internal control measures are properly in place and the effectiveness of risk management. In addition, the Group has also integrated the management of operational risk and internal controls into daily operation; participated in the design of system, procedures and plan for new business throughout the entire process; fully identified and comprehensively evaluated the operational risks; and performed various pre-, middle- and post management measures such as setting up front-end controls, standardising business processes, creating risk-discovery indicators and conducting training and inspection in order to implement internal controls at key risk points. (f) Capital management The Group's objectives of capital management are: (i) To safeguard the Group's ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stakeholders; (ii) To support the Group's stability and growth; (iii) To maintain a strong capital base to support the development of their business; and (iv) To comply with the capital requirements under the PRC, Hong Kong and the United States regulations. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (f) Capital management - continued - 176 - On 23 January 2020 and 16 June 2020, the revised Rules on Standards for the Calculation of Risk Control Indicators of Securities Companies and the revised Administrative Measures for Risk Control Indicators of Securities Companies were issued by the CSRC ("Revised Administrative Measures"). The Company is required to meet the following standards for risk control indicators on a continual basis from 1 June 2020: (i) The ratio of net capital divided by the sum of its various risk capital provisions shall be no less than 100%; (ii) The ratio of net capital divided by net assets shall be no less than 20%; (iii) The ratio of net capital divided by liabilities shall be no less than 8%; (iv) The ratio of net assets divided by liabilities shall be no less than 10%; (v) The ratio of the value of equity securities and derivatives held divided by net capital shall not exceed 100%; (vi) The ratio of the value of non-equity securities and derivatives held divided by net capital shall not exceed 500%; (vii) The ratio of core net capital divided by on balance sheet and off balance sheet assets shall be no less than 8%; (viii) The ratio of high quality liquidity assets divided by net cash outflows for the next 30 days shall be no less than 100%; (ix) The ratio of available stable funds divided by required stable funds shall be no less than 100%; and (x) The ratio of margin financing (including securities lending) divided by net capital shall not exceed 400%. Net capital refers to net assets minus risk adjustments on certain types of assets as defined in the Administrative Measures. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (f) Capital management - continued - 177 - As at 31 December 2024 and 31 December 2023, the Company maintained net capital and the above ratios as follows: | | | | | --- | --- | --- | | | Year ended 31 December | | | | 2024 | 2023 | | Net Capital | 94,142,061 | 94,076,764 | | The ratio of net capital divided by the sum of its various | | | | risk capital provisions | 362.37% | 247.80% | | The ratio of net capital divided by net assets | 58.51% | 60.67% | | The ratio of net capital divided by liabilities | 27.25% | 22.15% | | The ratio of net assets divided by liabilities | 46.57% | 36.51% | | The ratio of the value of equity securities and derivatives | | | | held divided by net capital | 26.98% | 28.58% | | The ratio of the value of non-equity securities and | | | | derivatives held divided by net capital | 254.96% | 366.74% | | The ratio of core net capital divided by on balance sheet | | | | and off balance sheet assets | 18.05% | 13.98% | | The ratio of high quality liquidity assets divided by net | | | | cash outflows for the next 30 days | 221.41% | 152.51% | | The ratio of available stable funds divided by required | | | | stable funds | 150.36% | 130.84% | | The ratio of margin financing (including securities | | | | lending) divided by net capital | 142.72% | 139.45% | Similar to the Company, certain subsidiaries of the Group are also subject to capital requirements under the Mainland China, Hong Kong and the United States regulatory requirements, respectively. These subsidiaries comply with the capital requirements during the year ended 31 December 2024 and 31 December 2023. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued - 178 - (g) Transfer of financial assets The Group transferred financial assets to certain counterparties through repurchase agreements and securities lending. These securities are not derecognised from the consolidated statement of financial position because the Group retains substantially all the risks and rewards of these securities. The Group entered into repurchase agreements with certain counterparties to sell debt securities classified as financial assets at fair value through profit or loss and debt instruments at amortised cost. Sales and repurchase agreements are transactions in which the Group sell a security, and agree to repurchase it at the agreed date and price. The repurchase prices are fixed and the Group is still exposed to substantially all the credit risks, market risks and rewards of those securities sold. These securities are not derecognised from the consolidated statement of financial position because the Group retains substantially all the risks and rewards of these financial assets. The Group entered into securities lending agreements with clients to lend out its equity securities and exchange-traded funds classified as financial assets at fair value through profit or loss. As stipulated in the securities lending agreements, the legal ownership of these equity securities and exchange-traded funds is transferred to the clients. Although the clients are allowed to sell these securities during the covered period, they have obligations to return these securities to the Group at specified future dates. The Group has determined that it retains substantially all the risks and interests of these securities and therefore has not derecognised these securities in the consolidated statement of financial position. The following tables provide a summary of carrying amounts and fair values of the transferred financial assets that are not derecognised in their entirety and the associated liabilities: ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 61. Financial instruments and risk management - continued (g) Transfer of financial assets - continued - 179 - As at 31 December 2024 | | | | | | --- | --- | --- | --- | | | Financial assets at fair value through profit or loss | | | | | Sales and | | | | | repurchase | | | | | agreements | Securities lending | Total | | Carrying amount of transferred assets | 7,136,485 | 1,274,563 | 8,411,048 | | Carrying amount of associated | | | | | liabilities | (6,065,887) | - | (6,065,887) | | Net position | 1,070,598 | 1,274,563 | 2,345,161 | As at 31 December 2023 | | | | | | --- | --- | --- | --- | | | Financial assets at fair value through profit or loss | | | | | Sales and | | | | | repurchase | | | | | agreements | Securities lending | Total | | Carrying amount of transferred assets | 1,848,651 | 1,791,118 | 3,639,769 | | Carrying amount of associated | | | | | liabilities | (1,733,189) | - | (1,733,189) | | Net position | 115,462 | 1,791,118 | 1,906,580 | 62. Fair value information (a) Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participations at the measurement date. (i) Financial instruments in Level I The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the statement of financial position. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the closing price within bid-ask spread. These instruments are included in Level I. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (a) Fair value of financial instruments - continued - 180 - (ii) Financial instruments in Level II The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level II. (iii) Financial instruments in Level III If one or more of the significant inputs is not based on observable market data, the instrument is included in Level III. (b) Fair value of other financial instruments (carried at other than fair value) The fair value of financial assets and financial liabilities not measured at fair value on a recurring basis is estimated by the active market quotation or determined in accordance with discounted cash flow method. The main parameters used in discounted cash flow method for financial instruments held by the Group that are not measured at fair value on a recurring basis include bond interest rates, foreign exchange rates and counterparty credit spreads. The carrying amount and fair value of debt instruments at amortised cost investments, short-term debt instruments issued and long-term bonds which are not presented at fair value are listed as below: Carrying amount | | | | | --- | --- | --- | | | As at 31 December | | | | 2024 | 2023 | | Financial assets | | | | - Debt instruments at amortised cost | 47,793,722 | 50,116,812 | | Total | 47,793,722 | 50,116,812 | | Financial liabilities | | | | - Short-term debt instruments issued | (28,852,939) | (25,475,507) | | - Long-term bonds | (115,458,817) | (159,816,001) | | Total | (144,311,756) | (185,291,508) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (b) Fair value of other financial instruments (carried at other than fair value) - continued - 181 - Fair value | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | Level I | Level II | Level III | Total | | Financial assets | | | | | | - Debt instruments at amortised cost | - | 51,458,276 | - | 51,458,276 | | Total | - | 51,458,276 | - | 51,458,276 | | Financial liabilities | | | | | | - Short-term debt instruments issued | - | 16,841,267 | 12,022,923 | 28,864,190 | | - Long-term bonds | - | 92,483,912 | 25,836,552 | 118,320,464 | | Total | - | 109,325,179 | 37,859,475 | 147,184,654 | | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | Level I | Level II | Level III | Total | | Financial assets | | | | | | - Debt instruments at amortised cost | - | 51,189,494 | - | 51,189,494 | | Total | - | 51,189,494 | - | 51,189,494 | | Financial liabilities | | | | | | - Short-term debt instruments issued | - | 14,047,389 | 11,444,324 | 25,491,713 | | - Long-term bonds | - | 129,176,100 | 32,302,564 | 161,478,664 | | Total | - | 143,223,489 | 43,746,888 | 186,970,377 | The fair value of the financial assets and financial liabilities included in the level II and III categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. Except for the above, the directors of the Company consider that the carrying amounts of financial assets and financial liabilities recorded in the Group's consolidated statement of financial position approximate their fair value. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued - 182 - (c) Fair value of financial instruments carried at fair value The table below analyses financial instruments, measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorised. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2024 | | | | | | Level I | Level II | Level III | Total | | Assets | | | | | | Financial assets at fair value through | | | | | | profit or loss | | | | | | - Debt securities | 446,496 | 170,876,044 | 242,137 | 171,564,677 | | - Equity securities | 55,932,255 | - | 4,954,385 | 60,886,640 | | - Mutual funds | 56,680,115 | 4,138,639 | 257,505 | 61,076,259 | | - Private funds | - | 3,548,646 | - | 3,548,646 | | - Wealth management products | - | 3,280,955 | 475,063 | 3,756,018 | | - Other debt instruments | - | - | 705,518 | 705,518 | | Debt instruments at fair value through | | | | | | other comprehensive income | - | 10,135,553 | - | 10,135,553 | | Equity instruments at fair value | | | | | | through other comprehensive | | | | | | income | - | 21,109 | 104,751 | 125,860 | | Other investment | | | | | | - Unlisted investment in a joint | | | | | | venture | - | - | 208,769 | 208,769 | | Derivative financial assets | 350,714 | 7,349,069 | 2,291,342 | 9,991,125 | | Total | 113,409,580 | 199,350,015 | 9,239,470 | 321,999,065 | | Liabilities | | | | | | Financial liabilities at fair value | | | | | | through profit or loss | | | | | | - Financial liabilities held for trading | (1,165,039) | (25,420,561) | - | (26,585,600) | | - Financial liabilities designated at | | | | | | fair value through profit or loss | - | (5,062,579) | (8,800,154) | (13,862,733) | | Derivative financial liabilities | (376,897) | (8,735,144) | (1,831,744) | (10,943,785) | | Total | (1,541,936) | (39,218,284) | (10,631,898) | (51,392,118) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued - 183 - | | | | | | | --- | --- | --- | --- | --- | | | As at 31 December 2023 | | | | | | Level I | Level II | Level III | Total | | Assets | | | | | | Financial assets at fair value through | | | | | | profit or loss | | | | | | - Debt securities | 1,247,948 | 193,929,712 | 586,617 | 195,764,277 | | - Equity securities | 114,529,748 | 8,985 | 15,068,652 | 129,607,385 | | - Mutual funds | 59,389,427 | 2,199,859 | 178,042 | 61,767,328 | | - Private funds | - | 22,344,489 | - | 22,344,489 | | - Wealth management products | - | 1,418,630 | - | 1,418,630 | | - Other debt instruments | - | - | 2,177,275 | 2,177,275 | | Debt instruments at fair value through | | | | | | other comprehensive income | - | 16,081,537 | 180,463 | 16,262,000 | | Equity instruments at fair value | | | | | | through other comprehensive | | | | | | income | - | 18,849 | 105,657 | 124,506 | | Other investment | | | | | | - Unlisted investment in a joint | | | | | | venture | - | - | 380,612 | 380,612 | | Derivative financial assets | 197,373 | 10,353,460 | 5,709,048 | 16,259,881 | | Total | 175,364,496 | 246,355,521 | 24,386,366 | 446,106,383 | | Liabilities | | | | | | Financial liabilities at fair value | | | | | | through profit or loss | | | | | | - Financial liabilities held for trading | (1,457,566) | (34,474,571) | - | (35,932,137) | | - Financial liabilities designated at | | | | | | fair value through profit or loss | (828,545) | (5,031,459) | (10,879,025) | (16,739,029) | | Derivative financial liabilities | (247,954) | (13,176,576) | (3,457,111) | (16,881,641) | | Total | (2,534,065) | (52,682,606) | (14,336,136) | (69,552,807) | For the year ended 31 December 2024, there were no financial instruments transfer from Level II to Level I (for the year ended 31 December 2023: Nil). ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued - 184 - (i) Valuation methods for financial instruments in Level II | | | | | --- | --- | --- | | Financial assets | Fair value | | | and liabilities | hierarchy | Valuation technique(s) and key input(s) | | Debt securities at fair value | Level II | Future cash flows estimated based on contractual amounts | | through profit or loss | | discounted at a rate that reflects the credit risk of the | | | | bonds. | | Equity securities at fair value | Level II | Recent transaction prices. | | through profit or loss | | | | Funds at fair value through | Level II | Net asset value as published by the fund managers. | | profit or loss | | | | Wealth management products | Level II | Net asset value as published by the managers of products. | | at fair value through profit | | | | or loss | | | | Debt instruments at fair value | Level II | Future cash flows estimated based on contractual amounts | | through other | | discounted at a rate that reflects the credit risk of the | | comprehensive income | | bonds. | | Equity instruments at fair | Level II | Recent transaction prices. | | value through other | | | | comprehensive income | | | | Derivative financial assets/ | Level II | Future cash flows estimated based on forward exchange | | derivative financial | | rates (from observable forward exchange rates at the end | | liabilities | | of the reporting period) and contract forward rates, | | | | discounted at a rate that reflects the credit risk of various | | | | counterparties; or calculated based on the difference | | | | between the equity return of underlying equity securities | | | | and the fixed income agreed in the swap agreements. | | Financial liabilities held for | Level II | Future cash flows estimated based on contractual amounts | | trading | | discounted at a rate that reflects the credit risk of the | | | | debt instruments. | | Financial liabilities | Level II | Calculated based on the fair value of the underlying | | designated at fair value | | investments which are debt securities and publicly | | through profit or loss | | traded equity investments in each portfolio. | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued - 185 - (ii) Valuation methods for Financial instruments in Level III | | | | | | | --- | --- | --- | --- | --- | | | | | Significant | Relationship of | | Financial assets | Fair value | Valuation | unobservable | unobservable | | and liabilities | hierarchy | technique(s) | input(s) | input(s) to fair value | | Other debt instruments and | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted | | debt securities at fair value | | model | and expected cash flow. | discount rate, the lower the | | through profit or loss | | | | fair value; the higher the | | | | | | expected cash flow, the higher | | | | | | the fair value. | | Unlisted equity securities at | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, | | fair value through profit or | | an adjustment or | P/B multiples of | the lower the fair value; the | | loss | | discount for lack of | comparable listed | higher the valuation | | | | marketability | companies, and liquidity | multiples, the higher the fair | | | | | discount rate. | value. | | Funds at fair value | Level III | Black-Scholes option | Indicators such as price | The higher the price volatility, | | through profit or loss | | pricing model | volatility of comparable | the higher the discount rate; | | | | | funds, and discount rate. | the higher the discount rate, | | | | | | the lower the fair value. | | Debt instruments at fair | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted | | value through other | | model | and expected cash flow. | discount rate, the lower the | | comprehensive income | | | | fair value; the higher the | | | | | | expected cash flow, the higher | | | | | | the fair value. | | Equity instruments at fair | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, the | | value through other | | an adjustment or | P/B multiples of | lower the fair value; the | | comprehensive income | | discount for lack of | comparable listed | higher the valuation | | | | marketability | companies, and liquidity | multiples, the | | | | | discount rate. | higher the fair value. | | Unlisted investment in a | Level III | Discounted cash flow | Risk adjusted discount rate | The higher the risk adjusted | | joint venture | | model | and expected cash flow. | discount rate, the lower the | | | | | | fair value; the higher the | | | | | | expected cash flow, the higher | | | | | | the fair value. | | Derivative financial assets/ | Level III | Black-Scholes option | Price volatility of underlying | The higher the price volatility, | | derivative financial | | pricing model | assets. | the greater the impact on the | | liabilities | | /Monte-Carlo option | | fair value. | | | | pricing model | | | | Financial liabilities | Level III | Market approach, with | Indicators such as P/E and | The higher the discount, | | designated at fair value | | an adjustment or | P/B multiples of | the lower the fair value; the | | through profit or loss | | discount for lack of | comparable listed | higher the valuation | | | | marketability of the | companies, and liquidity | multiples, the higher the fair | | | | underlying portfolios | discount rate. | value. | | Financial liabilities | Level III | Black-Scholes option | Price volatility of underlying | The higher the price volatility, | | designated at fair value | | pricing model | assets. | the greater the impact on the | | through profit or loss | | /Monte-Carlo option | | fair value. | | | | pricing model | | | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued - 186 - (iii) Financial instruments in Level III The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurement in Level III of the fair value hierarchy: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Equity | | | | | | | | | | Debt | instruments | | | | | | | | | | instruments | assets at fair | | | Financial | | | | | Financial | | at fair value | value through | | | liabilities at | | | | | assets at fair | | through other | other | | | fair value | Derivative | | | | value through | Other | comprehensive | comprehensive | Derivative | | through | financial | | | | profit or loss | investment | income | income | financial assets | Total | profit or loss | liabilities | Total | | As at 1 January 2024 | 18,010,586 | 380,612 | 180,463 | 105,657 | 5,709,048 | 24,386,366 | (10,879,025) | (3,457,111) | (14,336,136) | | Transfer in | 49,537 | - | - | - | - | 49,537 | - | - | - | | Transfer out | (7,307,070) | - | - | - | - | (7,307,070) | - | - | - | | Gains or losses for the year | (2,843,033) | (171,843) | (1,524) | - | (3,009,600) | (6,026,000) | 325,211 | 1,968,392 | 2,293,603 | | Changes in fair value | | | | | | | | | | | recognised in other | | | | | | | | | | | comprehensive income | - | - | 10,420 | (1,106) | - | 9,314 | - | (136,318) | (136,318) | | Additions | 676,939 | - | - | 400 | 47,598 | 724,937 | (16,786,700) | 317,237 | (16,469,463) | | Sales | (1,833,936) | - | - | - | (67,722) | (1,901,658) | - | (492,533) | (492,533) | | Settlements | (118,415) | - | (189,359) | (200) | (387,982) | (695,956) | 18,540,360 | (31,411) | 18,508,949 | | As at 31 December 2024 | 6,634,608 | 208,769 | - | 104,751 | 2,291,342 | 9,239,470 | (8,800,154) | (1,831,744) | (10,631,898) | | Total gains or losses for the | | | | | | | | | | | period included in profit or | | | | | | | | | | | loss for assets/liability held at | | | | | | | | | | | the end of the reporting | | | | | | | | | | | period | (1,604,416) | (171,844) | - | - | (3,418,295) | (5,194,555) | 296,442 | 1,641,673 | 1,938,115 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued (iii) Financial instruments in Level III - continued - 187 - | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Equity | | | | | | | | | | Debt | instruments | | | | | | | | | | instruments | assets at fair | | | Financial | | | | | Financial | | at fair value | value through | | | liabilities at | | | | | assets at fair | | through other | other | | | fair value | Derivative | | | | value through | Other | comprehensive | comprehensive | Derivative | | through | financial | | | | profit or loss | investment | income | income | financial assets | Total | profit or loss | liabilities | Total | | As at 1 January 2023 | 20,403,033 | 741,464 | 677,873 | 87,794 | 3,235,282 | 25,145,446 | (9,660,147) | (1,281,649) | (10,941,796) | | Transfer in | 66,381 | - | - | - | - | 66,381 | - | - | - | | Transfer out | (9,737,580) | - | - | - | - | (9,737,580) | - | - | - | | Gains or losses for the year | (43,469) | (360,852) | 1,819 | - | 3,167,323 | 2,764,821 | (483,933) | (1,618,490) | (2,102,423) | | Changes in fair value | | | | | | | | | | | recognised in other | | | | | | | | | | | comprehensive income | - | - | (5,179) | 17,863 | (31,121) | (18,437) | - | (32,763) | (32,763) | | Additions | 9,511,417 | - | - | - | 21,555 | 9,532,972 | (6,989,522) | 564,316 | (6,425,206) | | Sales | (1,746,812) | - | - | - | (46,394) | (1,793,206) | - | (608,437) | (608,437) | | Settlements | (442,384) | - | (494,050) | - | (637,597) | (1,574,031) | 6,254,577 | (480,088) | 5,774,489 | | As at 31 December 2023 | 18,010,586 | 380,612 | 180,463 | 105,657 | 5,709,048 | 24,386,366 | (10,879,025) | (3,457,111) | (14,336,136) | | Total gains or losses for the | | | | | | | | | | | period included in profit or | | | | | | | | | | | loss for assets/liability held at | | | | | | | | | | | the end of the reporting | | | | | | | | | | | period | 391,908 | (360,852) | - | - | 2,487,619 | 2,518,675 | 1,515,251 | (2,030,084) | (514,833) | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 62. Fair value information - continued (c) Fair value of financial instruments carried at fair value - continued (iii) Financial instruments in Level III - continued - 188 - For the year ended 31 December 2024, the Group's investments in financial assets at fair value through profit or loss of RMB 49,537 thousand were transferred from Level I to Level III, as the fair values of these securities were determined using valuation techniques instead of quoted prices, due to delisting (For the year ended 31 December 2023: RMB66,381 thousand). For the year ended 31 December 2024, the Group's investments in financial assets at fair value through profit or loss of RMB7,334 million were transferred from Level III to Level I, as the fair values of these securities were determined using quoted prices instead of valuation techniques, due to expiration of lock-up period (For the year ended 31 December 2023: 9,738 million). 63. Share-based payments | | | | | | | | --- | --- | --- | --- | --- | --- | | | | As at | | | As at | | | | 1 January | Accrued | Decrease | 31 December | | | Notes | 2024 | for the year | for the year | 2024 | | Restricted Share Incentive | | | | | | | Scheme of A Shares | (a) | 180,789 | 31,852 | (108,017) | 104,624 | | Share-based payments of an | | | | | | | overseas subsidiary | | 1,388,553 | 69,352 | (1,457,905) | - | | Total | | 1,569,342 | 101,204 | (1,565,922) | 104,624 | | | | As at | | | As at | | | | 1 January | Accrued | Decrease | 31 December | | | Notes | 2023 | for the year | for the year | 2023 | | Restricted Share Incentive | | | | | | | Scheme of A Shares | (a) | 223,981 | 72,582 | (115,774) | 180,789 | | Share-based payments of an | | | | | | | overseas subsidiary | | 1,273,641 | 114,912 | - | 1,388,553 | | Total | | 1,497,622 | 187,494 | (115,774) | 1,569,342 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 63. Share-based payments - continued - 189 - (a) Restricted share incentive scheme of A shares The Company carried out a Restricted Share Incentive Scheme of A Shares whereby the Company grant restricted A shares to the Incentive Participants in return for their services. On 29 March 2021, 45,640,000 restricted A Shares were granted to 813 incentive participants at the grant price of RMB9.10 per Share. As at 30 March 2021, the Company had in aggregate received subscription proceeds of RMB413,940,800 from 810 incentive participants. On 30 March 2023, the Board and the Supervisory Committee of the Company considered and approved that the total number of restricted shares that can be unlocked is 14,222,943 shares at the end of the first locking period. On 12 April 2024, the Board and the Supervisory Committee of the Company considered and approved that the total number of restricted shares that can be unlocked is 13,269,954 shares at the end of the second locking period (Note 55). As at 31 December 2024, there are one remaining unlocking periods under the incentive scheme, the weighted average remaining contractual life of the incentive scheme is 0.25 years. Details of the scheme as at 31 December 2024 and 31 December 2023 are set out below: | | | | | --- | --- | --- | | | Year ended 31 December | | | Number of shares | 2024 | 2023 | | Outstanding at the beginning of the year | 27,793,201 | 43,788,054 | | Granted during the year | - | - | | Exercised during the year | - | - | | Forfeited during the year | (799,597) | (1,771,910) | | Unlocked during the year | (13,269,954) | (14,222,943) | | Outstanding at the end of the year | 13,723,650 | 27,793,201 | | Exercisable at the end of the year | 13,723,650 | 27,793,201 | As at 31 December 2024, cumulative amount of RMB 104.62 million were recognised in the capital reserve and non-controlling interests of the Group (as at 31 December 2023: RMB180.79 million). The total expenses recognised for the year ended 31 December 2024 were RMB 31.85 (as at 31 December 2023: RMB72.58 million). For the year ended 31 December 2024, the Company recognised share-based payment expense amounted to RMB 4.88 million, for the restricted shares granted to the Company's key management personnel (for the year ended 31 December 2023: RMB10.22 million). The fair value of services received in return for restricted share Incentive scheme is measured by reference to the fair value of shares. The estimate of the fair value of restricted shares granted is measured based on the closing price of shares at grant date, which is RMB17.24 per share. ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 190 - 64. Company-level statement of financial position | | | | | | --- | --- | --- | --- | | | | As at 31 December | | | | Note | 2024 | 2023 | | Non-current assets | | | | | Property and equipment | | 4,458,811 | 4,187,944 | | Investment properties | | 824,668 | 858,046 | | Land-use rights and other intangible assets | | 853,119 | 833,036 | | Investments in subsidiaries | | 24,728,426 | 24,611,100 | | Interest in associates | | 17,935,690 | 15,486,356 | | Debt instruments at amortised cost | | 40,618,221 | 4,697,309 | | Financial assets held under resale agreements | | 199,610 | - | | Debt instruments at fair value through other | | | | | comprehensive income | | 2,317,359 | - | | Equity instruments at fair value through other | | | | | comprehensive income | | 39,759 | 52,694 | | Financial assets at fair value through profit or loss | | 518,602 | 542,102 | | Refundable deposits | | 8,022,200 | 13,790,464 | | Deferred tax assets | | 844,145 | - | | Other non-current assets | | 211,190 | 262,158 | | Total non-current assets | | 101,571,800 | 65,321,209 | | Current assets | | | | | Accounts receivable | | 2,340,263 | 3,437,465 | | Other receivables and prepayments | | 10,444,530 | 11,057,194 | | Margin accounts receivable | | 130,578,012 | 109,994,639 | | Debt instruments at amortised cost | | 6,938,958 | 45,169,690 | | Financial assets held under resale agreements | | 8,763,800 | 10,262,018 | | Debt instruments at fair value through other | | | | | comprehensive income | | 3,351,809 | 11,663,753 | | Financial assets at fair value through profit or loss | | 205,061,120 | 284,201,311 | | Derivative financial assets | | 7,017,269 | 11,313,833 | | Clearing settlement funds | | 13,700,234 | 13,863,172 | | Cash held on behalf of brokerage clients | | 138,397,191 | 102,305,180 | | Cash and bank balances | | 16,697,767 | 14,891,188 | | | | 543,290,953 | 618,159,443 | | Assets classified as held for sale | | 104,570 | - | | Total current assets | | 543,395,523 | 618,159,443 | | Total assets | | 644,967,323 | 683,480,652 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 64. Company-level statement of financial position - continued - 191 - | | | | | | --- | --- | --- | --- | | | | As at 31 December | | | | Note | 2024 | 2023 | | Current liabilities | | | | | Short-term debt instruments issued | | 28,852,939 | 16,776,642 | | Placements from other financial institutions | | 30,113,661 | 39,536,527 | | Accounts payable to brokerage clients | | 137,719,349 | 95,945,088 | | Employee benefits payable | | 2,697,793 | 2,038,688 | | Other payables and accruals | | 63,966,019 | 88,953,603 | | Current tax liabilities | | 158 | - | | Financial assets sold under repurchase agreements | | 99,120,033 | 116,230,125 | | Financial liabilities at fair value through profit or | | | | | loss | | 14,705,969 | 20,737,753 | | Derivative financial liabilities | | 8,767,418 | 11,885,585 | | Long-term bonds due within one year | | 31,474,933 | 38,411,570 | | Total current liabilities | | 417,418,272 | 430,515,581 | | Net current assets | | 125,977,251 | 187,643,862 | | Total assets less current liabilities | | 227,549,051 | 252,965,071 | | Non-current liabilities | | | | | Long-term bonds | | 61,356,697 | 92,708,296 | | Non-current employee benefits payable | | 4,564,615 | 4,495,899 | | Financial liabilities at fair value through profit or | | | | | loss | | 334,954 | 130,342 | | Deferred tax liabilities | | - | 80,495 | | Other payable and accruals | | 406,470 | 496,826 | | Total non-current liabilities | | 66,662,736 | 97,911,858 | | Net assets | | 160,886,315 | 155,053,213 | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) 64. Company-level statement of financial position - continued - 192 - | | | | | | --- | --- | --- | --- | | | | As at 31 December | | | | Note | 2024 | 2023 | | Equity | | | | | Share capital | 55(b) | 9,027,302 | 9,074,663 | | Other equity instruments | | 28,300,000 | 25,700,000 | | Treasury shares | | (100,545) | (1,064,173) | | Reserves | | 97,048,119 | 94,781,954 | | Retained profits | | 26,611,439 | 26,560,769 | | Total equity | | 160,886,315 | 155,053,213 | Approved and authorised for issue by the board of directors on 28 March 2025. | | | | --- | --- | | Zhang Wei | Wang Bing | | Chairman of the Board, | Director | | Director | | ![]() HUATAI SECURITIES CO., LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (Expressed in thousands of Renminbi, unless otherwise stated) - 193 - 65. Comparative figures Certain comparative figures have been reclassified to conform to the current year presentation. 66. Events after the reporting date (a) Issuance of bonds From 31 December 2024 to the date of the consolidated financial statements approved and authorised for issue, the Company has issued 8 corporate bonds with a cumulative amount of RMB 23,200 million bearing interest of 1.60% to 2.05% per annum. Huatai International Finance Limited, a subsidiary of Huatai International Financial Holdings Limited, has issued 1 medium- term note with a cumulative amount of USD50 million. (b) Profit distribution plan after accounting periods In March 2025, based on the Company’s total share capital of 9,027,302,281 shares as at the end of the reporting period, the Board proposed a cash dividend distribution of RMB0.37 per share (tax inclusive), amounting to a total cash dividend of RMB3,340 million (tax inclusive). During 2024, the Company had already implemented an interim profit distribution, distributing a cash dividend of RMB0.15 per share (tax inclusive), totaling RMB 1,354 million (tax inclusive). The total cash dividends distributed by the Company for the year (including the interim dividends already allocated) amount to RMB4,694 million (tax inclusive), equivalent to a combined cash dividend of RMB0.52 per share (tax inclusive), representing 30.58% of the consolidated net profit attribut able to the Company’s shareholders in 2024. The proposal is pending for the approval of the general meeting of the shareholders. The cash dividends are not recognised as a liability as at 31 December 2024. (c) Disposal of a subsidiary In January 2025, the Company completed the closing of the transfer of its 20% equity interest in Jiangsu Equity Exchange Center to Jiangsu Jincai Investment Co., Ltd. Consequently, the Company's shareholding in Jiangsu Equity Exchange Center has been reduced to 32%, and the entity has been reclassified as an associate of the Company.