GF Securities : ANNOUNCEMENT ON RECEIVING GOVERNMENT SUBSIDIES

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

GF SECURITIES CO., LTD.

廣發証券股份有限公司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1776)

ANNOUNCEMENT ON RECEIVING GOVERNMENT SUBSIDIES

1. BASIC INFORMATION ON THE GOVERNMENT SUBSIDIES RECEIVED
   In order to provide incentive to GF Securities Co., Ltd. (the "Company", including the wholly-owned and holding subsidiaries of the Company) for its business contribution and support for regional development, the Company has received a total of RMB756.3366 million from various government subsidies since 2019. Such amount has contributed RMB520.6399 million for the net profit attributable to owners of the Company, representing more than 10% of the audited net profit attributable to owners of the Company from the last financial year. The various government subsidies received by the Company are listed as follows:

	Amount of
	Government	Reasons for Receiving	Approval Number from
Name of the Company	Subsidies	Government
the Government
	(RMB in ten	Subsidies
	thousands)
GF Securities Co., Ltd.	47,618.21	Headquarters Business	Notice on Issuing of the
(廣發証券股份有限公司)		Contribution Award,	Measures for Promotion of
		Local Government	the Headquarters Economic
		Incentive Funds for	Development in Guangzhou
		Local Branches, etc.	Development Zone, Huangpu
			District, Guangzhou (Sui Kai
			Guan Ban [2017] No. 6), etc.
GF Fund Management Co., Ltd.	12,304.00	Incentive Funds	Notice on Issuing of the Measures
(廣發基金管理有限公司)		for Headquarters	for Promotion of Headquarters
		Corporate	Economic Development in
		Development	Hengqin New District (Zhu
			Heng Xin Ban [2014] No. 33)
GF Securities Asset	12,222.00	Incentive Funds	Notice on Issuing of the Measures
Management		for Headquarters	for Promotion of Headquarters
(Guangdong) Co., Ltd.		Corporate	Economic Development in
（廣發証券資產管理（廣東）		Development	Hengqin New District (Zhu
有限公司）			Heng Xin Ban [2014] No. 33)

1

	Amount of
	Government	Reasons for Receiving	Approval Number from
Name of the Company	Subsidies	Government
the Government
	(RMB in ten	Subsidies
	thousands)
GF Futures Co., Ltd.	1,889.36	Business Contribution	Notice on Issuing of the Measures
(廣發期貨有限公司)		Award, Dalian	for Promotion of Headquarters
		Financial	Economic Development in
		Industry Support	Guangzhou Development Zone,
		Special Fund,	Huangpu District, Guangzhou
		Financial Industry	(Sui Kai Guan Ban [2017]
		Development Fund	No. 6), Notice on Promotion
			of Certain Policies and
			Measures for the Construction
			of Dalian Regional Financial
			Center (Da Zheng Ban Fa
			[2018] No. 130), Notice on
			Issuing of the Measures for
			Supporting Financial Industry
			Development in Zhengdong
			New Area (Zheng Dong Wen
			[2017] No. 63)
GF Hexin Industry Investment	554.00	Incentive Funds for	Notice on Issuing of the Measures
Management Co., Ltd.		Promoting the	for Further Promotion of
(廣發合信產業投資管理		Development of	Private Equity Investment
有限公司)		Private Equity	Industry Development in
		Industry	Hengqin New District (Zhu
			Heng Xin Ban [2019] No. 1)
Guangfa Financial Leasing	385.09	Financial Service	Notice on Issuing of the
(Guangdong) Co., Ltd.		Industry Business	Implementation Rules of
(廣發融資租賃（廣東）		Contribution	Promotion of Financial Service
有限公司)		Award, Subsidies	Industry Supporting Measures
		for Financing Lease	in Guangzhou Nansha New
		Projects, etc.	District (Pilot Free Trade Zone)
			(Revised in July 2018)(Sui Nan
			Kai Jin Rong Fa [2018] No.
			5), Notice on the Application
			for the Supporting Projects
			regarding the Development
			of Financial Leasing Industry
			of Special Funds for Business
			Development in 2019 (Sui
			Shang Wu Te Shang Han
			[2018] No. 97)

2

	Amount of
	Government	Reasons for Receiving	Approval Number from
Name of the Company	Subsidies	Government
the Government
	(RMB in ten	Subsidies
	thousands)
Zhuhai Qianheng Investment	337.00	Incentive Funds	Notice on Issuing of the Measures
Management Co., Ltd.		for Headquarters	for Promotion of Headquarters
(珠海乾亨投資管理		Corporate	Economic Development in
有限公司)		Development	Hengqin New District (Zhu
			Heng Xin Ban [2014] No. 33)
Ruiyuan Capital Asset	203.00	Incentive Funds	Notice on Issuing of the Measures
Management Co., Ltd.		for Headquarters	for Promotion of Headquarters
(瑞元資本管理有限公司)		Corporate	Economic Development in
		Development	Hengqin New District (Zhu
			Heng Xin Ban [2014] No. 33)
GF Xinde Healthcare Capital	121.00	Incentive Funds	Notice on Issuing of the Measures
Management Co., Ltd.		for Headquarters	for Promotion of Headquarters
(廣發信德醫療資本管理		Corporate	Economic Development in
有限公司)		Development	Hengqin New District (Zhu
			Heng Xin Ban [2014] No. 33)

1. TYPES OF GOVERNMENT SUBSIDIES AND ITS IMPACT ON LISTED COMPANIES
2. 1. TYPES OF GOVERNMENT SUBSIDIES
      According to the provisions of the Accounting Standards for Business Enterprises No. 16 - Governmental Grants, government grants related to assets are those obtained for forming long-term assets by purchase, construction or acquisitions in other ways; Subsidies related to income are government grants other than those related to assets.
      The above-mentioned government subsidies received are all government grants related to income.
   2. CONFIRMATION AND MEASUREMENT ON SUBSIDIES
      According to the provisions of the Accounting Standards for Business Enterprises No. 16 - Governmental Grants, the above-mentioned government subsidies are government grants related to daily operation and are recognised as other income for the current period.
   3. IMPACT ON LISTED COMPANIES
      The above-mentioned government subsidies received has contributed an increase of RMB520.6399 million to the net profit attributable to owners of the Company for the year 2019. The above figures has not been audited. The specific accounting treatment and its impact on the relevant financial information of the Company will be subject to the audit results to be confirmed by its accountants after conducting the annual audit. Investors are hereby reminded of investment risks.

3

1. DOCUMENTS AVAILABLE FOR INSPECTION
2. 1. Notice on Issuing of the Measures for Promotion of the Headquarters Economic Development in Guangzhou Development Zone, Huangpu District, Guangzhou (Sui Kai Guan Ban [2017] No. 6);
   2. Notice on Issuing of the Measures for Promotion of Headquarters Economic Development in Hengqin New District (Zhu Heng Xin Ban [2014] No. 33);
   3. Notice on Issuing of the Implementation Rules of Promotion of Financial Service Industry Supporting Measures in Guangzhou Nansha New District (Pilot Free Trade Zone) (Revised in July 2018)(Sui Nan Kai Jin Rong Fa [2018] No. 5);
   4. Notice on Promotion of Certain Policies and Measures for the Construction of Dalian Regional Financial Center (Da Zheng Ban Fa [2018] No. 130);
   5. Notice on Issuing of the Measures for Supporting Financial Industry Development in Zhengdong New Area (Zheng Dong Wen [2017] No. 63);
   6. Notice on the Application for the Supporting Projects regarding the Development of Financial Leasing Industry of Special Funds for Business Development in 2019 (Sui Shang Wu Te Shang Han [2018] No. 97);
   7. Notice on Issuing of the Measures for Further Promotion of Private Equity Investment Industry Development in Hengqin New District (Zhu Heng Xin Ban [2019] No. 1);
   8. Proof of bank slips.

By order of the Board of Directors

GF Securities Co., Ltd.

Sun Shuming

Chairman

Guangzhou, the PRC

December 17, 2019

As at the date of this announcement, the Board of the Company comprises Mr. Sun Shuming, Mr. Lin Zhihai, Mr. Qin Li and Ms. Sun Xiaoyan as executive Directors; Mr. Shang Shuzhi, Mr. Li Xiulin and Ms. Liu Xuetao as non-executive Directors; and Mr. Yang Xiong, Mr. Tang Xin, Mr. Chan Kalok and Mr. Fan Lifu as Independent Non-executive Directors.

4