Everbright Securities : ANNOUNCEMENT ON THE RE-APPOINTMENT OF THE ACCOUNTING FIRMS

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.

Everbright Securities Company Limited

光 大 證 券 股 份 有 限 公 司

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

(Stock code: 6178)

ANNOUNCEMENT ON

THE RE-APPOINTMENT OF THE ACCOUNTING FIRMS

RE-APPOINTMENT OF ACCOUNTING FIRMS

As the external auditors of Everbright Securities Company Limited (the "Company") for the year of 2019, Ernst & Young Hua Ming LLP (Special General Partnership) and Ernst & Young are able to follow independent, objective and impartial practice standards in performing their duties, and have successfully carried out the relevant audit and review work for the Company in 2019. The 26th meeting of the fifth session of the board of directors of the Company proposed to reappoint Ernst & Young Hua Ming LLP (Special General Partnership) and Ernst & Young as the external auditors of the Company for the year of 2020. Such re-appointment shall be subject to consideration and approval at the general meeting of the Company.

1. BASIC INFORMATION ON THE PROPOSED APPOINTMENT OF THE ACCOUNTING FIRMS
2. 1. Information about the Institution
      1. Ernst & Young Hua Ming LLP (Special General Partnership)
   2. 1. Basic information. Ernst & Young Hua Ming LLP (Special General Partnership) ("EYHM") was founded in September 1992 and completed the transformation of localization in August 2012 from a sino-foreign limited liability company to a special general partnership. EYHM is headquartered in Beijing, and its registered address is Room 01-12, 17/ F, Ernst & Young Tower, Oriental Plaza, No.1 East Chang'an Avenue, Dongcheng District, Beijing. Since its establishment, EYHM has set up 19 branches in Shanghai, Guangzhou and other cities. EYHM mainly engages in the audit of the financial statements of enterprises and issuance of related auditor's reports; capital verification and issuance of capital verification reports; audit of business combination, division and liquidation, and the issuance of relevant reports; audit of the financial statements for the year of basic construction; agency accounting; bookkeeping agency; accounting consulting, tax consulting, management consulting, and accounting training; and other businesses stipulated by laws and regulations. EYHM is qualified to practice as an accounting firm and to audit H-share enterprises. It is officially registered with the Public Company Accounting Oversight Board in the United States (US PCAOB), and it is one of the first batch of firms in China to obtain qualifications for securities- and futures-related businesses. It has substantial experience and excellent professional service abilities in securities business services.

1

1. Information of personnel. The chief partner of EYHM is Mr. Mao Anning. As of 31 December 2019, EYHM has 7,974 employees, including 162 partners and 1,467 practicing certified public accountants, representing an increase of 302 accountants as compared to that on 31 December 2018. EYHM has always been attached to the cultivation of talents, and has over 1,000 practicing certified public accountants with experience in securities-related business services.
2. Business scale. The annual operating revenue of EYHM for the year 2018 was RMB43.75 billion, and its net assets amounted to RMB0.465 billion. In 2018, EYHM has audited annual reports of 74 listed companies with an average asset value of RMB566.9 billion for total auditing fees amounting to RMB0.340 billion. EYHM's clients mainly engage in industries including manufacturing, finance, leasing and commerce services, transportation, warehousing and postal services, information transmission, software and information technology services, production and supply of electricity, heat, gas and water, real estate, wholesale and retail trading, mining, construction, scientific research and technical services, agriculture, forestry, animal husbandry, fishing, water conservancy, environment and public facilities management, etc. EYHM has accumulated vast audit experience in serving the industry of the Company.
3. Investor protection capability. EYHM has investor protection capability and has purchased occupational insurance which covers its Beijing headquarter and all the other branches in accordance with relevant laws and regulations. The cumulative compensation limit of accrued occupational risk fund and purchased occupational insurance of EYHM has exceeded RMB80.00 million, and is able to bear the civil compensation liability which may arise from audit failure according to law.
4. Independence and integrity record. EYHM has no record of violations of the independence requirements in the Code of Professional Ethics for Chinese Certified Public Accountants. In the past three years, it has not been subject to any criminal punishment, administrative punishment and self-discipline supervision measures. On 17 February 2020, EYHM and individuals held in accountable received warning letter [2020] No. 21 issued by the China Securities Regulatory Commission ("CSRC") Jiangsu Branch, and on 24 February 2020, EYHM received warning letter [2020] No. 36 issued by the CSRC Beijing Branch, both of which do not have any impact on the services to be provided to the Company.

2. Ernst & Young

Ernst & Young ("EY HK") is a partnership firm established under the laws of Hong Kong and is wholly owned by its partners. EY HK has been providing auditing, taxation and consulting services in Hong Kong since 1976, and has provided auditing services for many Hong Kong listed companies, including banking, insurance, securities and other financial institutions. EY HK has been a member firm of EY global network since its establishment, and each of EY HK and EYHM is an independent legal entity.

2

Since 1 October 2019, EY HK has been registered as a public interest entity auditor under the Financial Reporting Council Ordinance in Hong Kong. In addition, EY HK has been approved by the Ministry of Finance of the People's Republic of China to obtain a temporary audit business license in Mainland China, and is an accounting firm registered with the US PCAOB and the Japanese Financial Services Authority to engage in related auditing business. EY HK maintains occupational insurance annually in accordance with relevant laws and regulations.

The Hong Kong Institute of Certified Public Accountants conducts independent inspections of EY HK every year. No matters that had a significant impact on the audit business of EY HK were found in the practice quality inspection in the last three years.

1. Information about the Project Members
   Project signatory accountant and project partner: Mr. Wang Ziqing, a certified public accountant in China. He has been engaged in audit business and services in the firm since 2002. He has over 17 years of experience in audit services and over 17 years of audit experience in listing and securities and futures business. He has no part-time job.
   Project quality control reviewer: Mr. Zhu Baoqin, a certified public accountant in China. He has been engaged in audit business and services in the firm since 2002. He has over 17 years of experience in audit services and has over 17 years of audit experience in listing and securities and futures businesses. He has no part-time job.
   Signatory accountant: Mr. Chen Qi, a certified public accountant in China. He has been engaged in audit business and services in the firm since 2007. He has over 13 years of experience in audit services and has over 13 years of audit experience in listing and securities and futures business. He has no part-time job.
   The independence and integrity record of the personnel aforesaid:

The project partners, project quality control reviewers, and project signatory accountants for the current period have not violated the independence requirements of the Code of Professional Ethics for Chinese Certified Public Accountants in China, and have not been imposed criminal penalties, administrative penalties, administrative supervision measures or self-regulatory measures.

1. Audit Expenses
   The Company is an A+H-share listed company. According to domestic and overseas regulatory requirements, EYHM and EY HK will be responsible for providing relevant audit services and review services in accordance with the Chinese Accounting Standards for Business Enterprises and International Financial Reporting Standards, respectively. The Company will propose to authorise the management at the general meeting to determine the audit expenses for the year of 2020 and sign contracts in accordance with market principles.

3

1. THE PROCEDURES TO BE PERFORMED BY THE ACCOUNTING FIRM TO BE RE-APPOINTED
2. 1. Upon consideration and approval by the audit committee at the 14th meeting of the 5th session of the board of directors of the Company, the audit committee is of the view that Ernst & Young Hua Ming LLP (Special General Partnership) and Ernst & Young possess professional capacity, investor protection ability, independence and good status of integrity that are required, the resolution is agreed to be tabled to the board of directors for consideration.

1. The independent non-executive Directors of the Company have issued independent opinions as follows:
2. 1. Ernst & Young Hua Ming LLP (Special General Partnership) and Ernst & Young possess the relevant qualifications to engage in securities and futures businesses, and the experience and the capacity to provide audit services for listed companies over the years, and is able to satisfy the Company's relevant domestic and overseas audit services in 2020.
   2. The re-appointment of the accounting firms complies with relevant laws and regulations, and the relevant deliberation procedures are in compliance with laws and regulations and the Articles of Association of the Company. There were no circumstances prejudicial to the interests of the Company and its shareholders. The resolution is agreed to be tabled to the general meeting of the Company for consideration.

1. The resolution of re-appointment of external auditors has been considered and approved in the 26th meeting of the fifth session of the board of directors of the Company. It was agreed to re-appoint Ernst & Young Hua Ming LLP (Special General Partnership) and Ernst & Young as the external auditors of the Company for 2020.

(IV) The matter regarding the re-appointment of the accounting firms shall be submitted to the general meeting of the Company for consideration.

By order of the Board

Everbright Securities Company Limited

Chairman

Yan Jun

Shanghai, the PRC

26 August 2020

As at the date of this announcement, the Board of the Company comprises Mr. Yan Jun (Chairman, Executive Director), Mr. Liu Qiuming (Executive Director), Mr. Song Bingfang (Non-executive Director), Mr. Yin Lianchen (Non-executive Director), Mr. Chan Ming Kin (Non-executive Director), Mr. Xue Keqing (Non-executive Director), Mr. Xu Jingchang (Independent Non-executive Director), Mr. Xiong Yan (Independent Non-executive Director), Mr. Li Zheping (Independent Non-executive Director), Mr. Au Sing Kun (Independent Non-executive Director) and Mr. Wang Yong (Independent Non-executive Director).

4