Haitong Securities : THE FIRST QUARTERLY REPORT FOR THE YEAR 2021

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.

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

(Stock Code: 6837)

THE FIRST QUARTERLY REPORT FOR THE YEAR 2021

The board of directors (the "Board") of Haitong Securities Co., Ltd. (the "Company") is pleased to announce the unaudited results of the Company and its subsidiaries (collectively the "Group") for the first quarter ended 31 March 2021, prepared under General Accepted Accounting Principles of the People's Republic of China ("PRC GAAP"). This announcement is made pursuant to the Inside Information Provision under Part XIVA of the Securities and Futures Ordinance (Cap 571, Laws of Hong Kong) (as defined in The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (the "Listing Rules")) and Rule 13.09(2) and Rule 13.10B of the Listing Rules.

§1 IMPORTANT NOTICE

1. The Board, the supervisory committee (the "Supervisory Committee") of the Company and its directors (the "Director(s)"), supervisors (the "Supervisor(s)") and senior management represent and warrant the authenticity, accuracy and completeness of contents of this quarterly report and that there is no false representation, misleading statements contained herein or material omission of this quarterly report, for which they will assume joint and several liabilities.
2. All the Directors attended the Board meeting and considered this quarterly report.
3. This quarterly financial report of the Company was prepared in accordance with PRC GAAP and was unaudited.
4. Mr. Zhou Jie, the person in charge of the Company, Mr. Zhang Xinjun, Chief Financial Officer, and Mr. Ma Zhong who is responsible for the accounting affairs, hereby represent and warrant that the financial statements contained in this quarterly report are authentic, accurate and complete.

1

§2 BASIC INFORMATION ON THE COMPANY

2.1 Major financial data
		Unit: Yuan	Currency: RMB
			Increase/decrease
			recorded at the
			end of the reporting
			period as compared
	As at the end of	As at the end	to the end of the
	the reporting period	of the previous year	previous year (%)
Total assets	703,570,925,583.55	694,073,350,684.76	1.37
Net assets attributable to
shareholders of the Company	156,294,291,983.99	153,448,467,827.53	1.85
		From the
	From the	beginning of the	Increase/decrease
	beginning	previous year to	as compared to
	of the year	the end of the	the corresponding
	to the end of the	reporting period of	period of the
	reporting period	the previous year	previous year (%)
Net cash inflow from
operating activities	27,929,503,727.38	3,884,725,216.53	618.96
		From the
	From the	beginning of the	Increase/decrease
	beginning	previous year to	as compared to
	of the year	the end of the	the corresponding
	to the end of the	reporting period of	period of the
	reporting period	the previous year	previous year (%)
Operating income	11,191,995,550.77	6,986,305,235.49	60.20
Net profit attributable to
shareholders of the Company	3,617,629,936.73	2,282,724,851.44	58.48
Net profit attributable to
shareholders of the Company
after deducting non-recurring
profit or loss	3,422,356,881.51	1,957,239,747.07	74.86
Weighted average returns			Increased by 0.54
on net assets (%)	2.34	1.80	percentage point
Basic earnings per share (RMB/Share)	0.28	0.20	40.00
Diluted earnings per share
(RMB/Share)	0.28	0.20	40.00

2

Non-recurring items and amounts
√ Applicable □ Not applicable
Unit: Yuan	Currency: RMB
	Amounts
Items	for the period
Gains and losses from disposals of
non-current assets	-8,303,358.31
Government grants recognized in current
profit or loss, excluding those closely
related to the Company's normal operations
and granted on an ongoing basis under the
State's policies according to certain quota of
amount or volume	424,015,203.82
Profit or loss from other contingencies which are
not related to the Company's normal operations	-3,253,919.75
Other non-operating incomes and
expenses except items above	30,713,003.31
Effect of non-controlling interests (net of tax)	-20,605,229.65
Effect of income tax	-227,292,644.20
Total	195,273,055.22

3

2.2 The total number of shareholders, and the shareholding of the top ten shareholders and the top ten shareholders of listed shares (or the shares not subject to trading moratorium) of the Company as of the end of the reporting period

					Unit: Share
Total number of shareholders	328,965 shareholders, among which 328,815 were
	holders of A Shares and 150 were holders of
	H Shares
Shareholding of the top ten shareholders
	Total
	number of		Number of
	shares held		shares held
	as at the end of	Proportion of	subject to	Shares
	the reporting	shareholding	trading	pledged or frozen	Nature of
Name of shareholders (Full name)	period	(%)	moratorium	Status	Number	shareholders
Hong Kong Securities Clearing	3,408,849,495	26.09	0	Unknown	-	Foreign legal
Company Nominees Limited						person
Shanghai Guosheng (Group) Co., Ltd.	862,489,059	6.60	781,250,000	Nil	0	State-owned
						legal person
Shanghai Haiyan Investment Management	635,084,623	4.86	234,375,000	Nil	0	State-owned
Company Limited						legal person
Bright Food (Group) Co., Ltd	480,275,000	3.68	78,125,000	Nil	0	State-owned
						legal person
Shenergy Group Company Limited	273,792,086	2.10	0	Nil	0	State-owned
						legal person
China Securities Finance Corporation Limited	258,104,024	1.98	0	Nil	0	Other
Shanghai Guosheng Group Assets Co., Ltd.	238,382,008	1.82	0	Nil	0	State-owned
						legal person
Shanghai Jiushi (Group) Co., Ltd.	235,247,280	1.80	0	Nil	0	State-owned
						legal person
Shanghai Electric (Group) Corporation	224,303,718	1.72	78,203,125	Nil	0	State
Shanghai Bailian Group Co., Ltd.	214,471,652	1.64	0	Nil	0	State-owned
						legal person

4

Particulars of top ten shareholders not subject to trading moratorium

Name of shareholders

Hong Kong Securities Clearing

Company Nominees Limited

Bright Food (Group) Co., Ltd

Shanghai Haiyan Investment Management

Company Limited

Shenergy Group Company Limited

China Securities Finance Corporation Limited

Shanghai Guosheng Group Assets Co., Ltd.

Shanghai Jiushi (Group) Co., Ltd.

Shanghai Bailian Group Co., Ltd.

China Construction Bank Corporation

• Guotai CSI All Share Securities Company Trading Index Securities Investment Open-ended Fund

Shanghai Electric (Group) Corporation

Explanations on the related relationship or concerted action among the above shareholders

Number of
listed shares not	Type and
subject to trading	number of shares
moratorium	Type	Number
3,408,849,495	Overseas listed	3,408,849,495
	foreign shares
402,150,000	RMB denominated	402,150,000
	ordinary shares
400,709,623	RMB denominated	400,709,623
	ordinary shares
273,792,086	RMB denominated	273,792,086
	ordinary shares
258,104,024	RMB denominated	258,104,024
	ordinary shares
238,382,008	RMB denominated	238,382,008
	ordinary shares
235,247,280	RMB denominated	235,247,280
	ordinary shares
214,471,652	RMB denominated	214,471,652
	ordinary shares
176,924,416	RMB denominated	176,924,416
	ordinary shares
146,100,593	RMB denominated	146,100,593
	ordinary shares

Shanghai Guosheng Group Assets Co., Ltd. is a wholly-owned subsidiary of Shanghai Guosheng (Group) Co., Ltd. Moreover, the Company is not aware of any related relationship among other shareholders or whether they are parties acting in concert

as stipulated in the Measures for the Administration of the Takeover of Listed Companies（《上市公司收購管理辦法》）.

5

Notes: 1. The nature of shareholders of RMB denominated ordinary shares (A Shares) represents that of accounts registered by such shareholders in Shanghai Branch of China Securities Depository and Clearing Corporation Limited.

1. In the table above, overseas listed foreign shares are H Shares. Among the H Shareholders of the Company, HKSCC Nominees Limited held the H Shares on behalf of the non-registered shareholders.
2. Shanghai Guosheng Group and its wholly-owned subsidiary, Shanghai Guosheng Group Assets Co., Ltd., hold a total of 1,356.3275 million A Shares and H Shares of the Company, representing 10.38% of the total share capital of the Company; Shanghai Electric (Group) Corporation holds a total of 393.9365 million A Shares and H Shares of the Company, representing 3.02% of the total share capital of the Company.
3. As the shares of the Company are subject of margin financing and securities lending, the number of shares held by a shareholder is calculated based on the aggregated number of shares and interests held by such shareholder through ordinary securities accounts and credit securities accounts.

2.3 The total number of holders of preferred shares and the shareholding of top ten holders of preferred shares and top ten holders of preferred shares (not subject to trading moratorium) as at the end of the reporting period

• Applicable √ Not applicable

6

§3 MAJOR EVENTS

3.1 Substantial changes in major accounting statement items and financial indicators of the Company and the reasons for such changes

√ Applicable □ Not applicable

			Unit: Yuan	Currency: RMB
	As at	As at
Items	31 March 2021	31 December 2020	Increase/Decrease	Reasons of change
Accounts receivable	11,418,324,932.05	8,410,000,191.07	35.77%	Mainly due to an
				increase in settlement
				receivables
Investments in other	8,588,251,368.01	16,239,187,221.41	-47.11%	Mainly due to
equity instruments				a decrease in
				investments in other
				equity instruments
Funds payable to	-	233,062,962.16	-100.00%	Mainly due to
securities issuers				a decrease in funds
				to securities issuers
Accounts payable	17,426,479,218.53	11,590,061,915.13	50.36%	Mainly due to an
				increase in
				settlement payable

7

			Unit: Yuan Currency: RMB
	January to	January to	Increase/
Items	March 2021	March 2020	Decrease	Reasons of change
Net fee and	3,565,439,531.54	2,741,587,069.28	30.05%	Mainly due to an increase
commission income				in net income from
				investment banking
				business
Net interest income	1,663,343,506.51	1,159,974,856.15	43.39%	Mainly due to a decrease
				in loan interest expenses
Investment gains	4,952,257,280.67	2,820,780,688.76	75.56%	Mainly due to an increase
				in investment gains
				arising from financial
				instruments
Gains arising from fair	-1,933,821,527.60	-1,455,386,437.11	-	Mainly due to the impacts
value changes				of market fluctuation
Exchange gains	47,536,808.04	230,934,500.48	-79.42%	Mainly due to the impacts
				of movements in foreign
				exchange rates
Other operating income	2,476,037,888.35	1,087,955,786.38	127.59%	Mainly due to an increase
				in sales income of
				a subsidiary
Business and	3,237,522,372.45	2,223,596,073.01	45.60%	Mainly due to an
management expenses				increase in staff cost
Credit impairment losses	415,204,801.65	692,603,614.07	-40.05%	Mainly due to a decrease
				in impairment loss of
				financing business
Other operating cost	2,243,237,684.06	801,337,146.80	179.94%	Mainly due to an increase
				in sales cost of
				a subsidiary
Income tax expense	1,285,292,972.84	869,566,957.51	47.81%	Mainly due to an increase
				in taxable income
Other comprehensive income,	-712,572,183.67	-313,659,440.33	-	Mainly due to a decrease
net of tax				in changes in fair value
				of investment in other
				equity instruments
Net cash flows from	27,929,503,727.38	3,884,725,216.53	618.96%	Mainly due to a net
operating activities				decrease in financial
				assets held for trading
Net cash flows from/(used in)	4,908,811,241.96	-3,377,427,440.66	-	Mainly due to an increase
investing activities				in cash received from
				sales of investments
Net cash flows (used in)/from	-6,161,079,219.51	21,310,222,879.33	-128.91%	Mainly due to a decrease
financing activities				in cash received from
				borrowings

8

1. Analysis and description of significant events and their impacts and solutions
2. • Applicable √ Not applicable
3. Undertakings that have not yet been duly fulfilled during the reporting period
4. • Applicable √ Not applicable
5. Warning in respect of forecast of a probable loss in the accumulated net profit for the period from the beginning of the year to the end of the next reporting period or a significant change therein as compared with that of the corresponding period of last year and the reasons therefor
6. • Applicable √ Not applicable

§4 APPENDIX

(See appendix)

By order of the Board

Haitong Securities Co., Ltd.

ZHOU Jie

Chairman

Shanghai, PRC,

28 April 2021

As at the date of this announcement, the executive directors of the Company are Mr. ZHOU Jie, Mr. QU Qiuping and Mr. REN Peng; the non-executive directors of the Company are Mr. TU Xuanxuan, Mr. ZHOU Donghui, Ms. YU Liping and Mr. XU Jianguo; and the independent non- executive directors of the Company are Mr. ZHANG Ming, Mr. LAM Lee G., Mr. ZHU Hongchao and Mr. ZHOU Yu.

• For identification purpose only

9

APPENDIX

4.1 FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET (UNAUDITED)

31 March 2021

Prepared by: Haitong Securities Co., Ltd.
	Unit: Yuan	Currency: RMB
	As at	As at
Items	31 March 2021	31 December 2020
Assets:
Bank and cash balance	152,762,446,866.26	127,846,510,384.44
Including: Cash held on behalf of customers	89,568,464,564.02	91,691,751,326.06
Clearing settlement funds	13,846,815,500.28	11,852,300,703.44
Including: Settlement funds held on behalf of customers	9,912,674,857.49	8,439,499,702.35
Placements to banks and other financial institutions	22,764,337.33	22,619,003.50
Margin loan	79,735,871,856.34	73,067,592,180.28
Derivative financial assets	1,402,042,850.59	1,837,911,549.28
Refundable deposits	17,508,459,266.36	17,374,851,216.38
Accounts receivables	11,418,324,932.05	8,410,000,191.07
Contract assets
Financial assets held under resale agreement	45,495,434,739.48	57,965,393,846.35
Assets held for sale	126,757.96	126,757.96
Financial investment:
Financial assets held for trading	215,289,654,113.38	220,396,503,802.97
Debt investments	3,728,598,119.40	3,763,499,007.04
Other debt investments	15,473,433,841.49	13,108,162,077.30
Investments in other equity instruments	8,588,251,368.01	16,239,187,221.41
Finance lease receivables	43,927,358,069.20	48,411,402,490.40
Long-term receivables	36,458,296,540.54	35,214,476,098.67
Long-term equity investments	4,490,949,313.31	4,428,306,984.21
Investment properties	51,400,885.74	111,591,512.78
Fixed assets	14,281,396,713.73	14,286,537,337.68
Construction in progress	442,328,276.25	384,734,625.27
Right-of-use assets	1,039,483,309.38	1,043,725,022.09
Intangible assets	1,252,896,253.13	1,292,412,549.02
Goodwill	3,901,225,304.97	3,884,909,888.02
Deferred tax assets	4,405,013,555.61	4,282,160,088.28
Other assets	28,048,352,812.76	28,848,436,146.92
Total assets	703,570,925,583.55	694,073,350,684.76

10

CONSOLIDATED BALANCE SHEET (UNAUDITED) (Continued)
	Unit: Yuan	Currency: RMB
		As at	As at
Items	31 March 2021	31 December 2020
Liabilities:
Short-term borrowings	35,809,303,058.86	43,367,554,072.81
Short-term financing bills payables	24,209,410,847.52	25,718,522,701.47
Placements from banks and other financial institutions	15,937,735,732.94	15,069,512,517.55
Financial liabilities held for trading	35,386,448,576.34	32,238,300,944.74
Derivative financial liabilities	2,091,634,579.04	2,672,278,930.69
Financial assets sold under repurchase agreements	62,221,919,218.47	60,563,432,718.62
Accounts payable to brokerage clients	107,133,583,801.69	108,167,567,969.29
Funds payable to securities issuers			233,062,962.16
Payroll payable	6,155,848,910.91	6,478,180,676.07
Taxes payable	3,388,076,812.40	3,566,582,804.82
Accounts payable	17,426,479,218.53	11,590,061,915.13
Contract liabilities	208,978,597.91	131,039,010.16
Liabilities held for sale
Provisions	166,876,206.27	141,083,942.89
Long-term borrowings	49,753,247,146.02	49,363,002,740.67
Bonds payables	153,689,287,577.82	147,838,209,538.34
Including: Preferred shares
Perpetual bond
Lease liabilities	1,045,284,438.73	1,052,413,502.19
Deferred tax liabilities	657,583,611.44	698,134,483.29
Other liabilities	16,681,358,825.55	17,058,097,418.11
Total liabilities	531,963,057,160.44	525,947,038,849.00
Equity (or shareholders' equity):
Paid-in capital (or share capital)	13,064,200,000.00	13,064,200,000.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserve	74,901,693,745.65	74,888,284,930.75
Less: treasury shares
Other comprehensive income	-1,434,463,966.22	-650,570,845.59
Surplus reserve	7,663,172,125.37	7,663,172,125.37
General risk reserve	17,294,423,766.02	17,260,983,392.72
Retained profits	44,805,266,313.17	41,222,398,224.28
Total equity (or shareholders' equity)
attributable to the owners of the Company	156,294,291,983.99	153,448,467,827.53
Non-controlling interests	15,313,576,439.12	14,677,844,008.23
Total equity (or shareholders' equity)	171,607,868,423.11	168,126,311,835.76
Total liabilities and equity (or shareholders' equity)	703,570,925,583.55	694,073,350,684.76
Person in charge of the Company: Zhou Jie Chief Financial Officer: Zhang Xinjun	Person responsible for the
		accounting affairs: Ma Zhong

11

BALANCE SHEET OF THE PARENT COMPANY (UNAUDITED)

31 March 2021

Prepared by: Haitong Securities Co., Ltd.
	Unit: Yuan	Currency: RMB
	As at	As at
Items	31 March 2021	31 December 2020
Assets:
Bank and cash balance	93,796,639,886.85	74,010,191,666.45
Including: Cash held on behalf of customers	57,494,399,842.55	57,107,099,896.87
Clearing settlement funds	17,099,424,944.04	17,748,028,149.83
Including: Settlement funds held on
behalf of customers	9,167,569,060.11	8,787,695,278.74
Placements to banks and other financial institutions
Margin loan	68,328,817,169.64	62,585,416,116.49
Derivative financial assets	302,728,723.43	109,961,010.63
Refundable deposits	5,269,226,843.68	3,815,156,298.46
Accounts receivables	1,419,523,157.06	1,458,058,794.21
Contract assets
Financial assets held under resale agreement	39,519,924,755.18	46,043,557,098.07
Assets held for sale
Financial investment:
Financial assets held for trading	118,479,704,261.45	118,954,600,639.95
Debt investments
Other debt investments	13,807,898,978.22	11,767,722,804.51
Investments in other equity instruments	8,331,020,267.04	15,984,455,967.50
Long-term equity investments	35,286,073,625.29	35,146,029,297.79
Investment properties	13,022,551.00	13,278,651.97
Fixed assets	5,945,830,644.80	5,971,363,529.79
Construction in progress	375,207,550.16	316,873,644.40
Right-of-use assets	499,225,087.16	500,414,323.31
Intangible assets	295,761,760.69	311,261,069.99
Deferred tax assets	1,906,478,393.73	1,654,578,148.20
Other assets	1,612,645,401.86	1,301,878,794.62
Total assets	412,289,154,001.28	397,692,826,006.17

12

BALANCE SHEET OF THE PARENT COMPANY (UNAUDITED) (Continued)

	Unit: Yuan	Currency: RMB
		As at	As at
Items	31 March 2021	31 December 2020
Liabilities:
Short-term borrowings
Short-term financing bills payables	9,588,501,709.64	14,954,952,895.91
Placements from banks and other financial institutions	9,925,377,444.45	8,801,861,666.67
Financial liabilities held for trading	12,146,516,006.36	8,319,118,224.27
Derivative financial liabilities	446,336,778.30	543,531,575.78
Financial assets sold under repurchase agreements	50,766,644,718.89	48,997,605,575.98
Accounts payable to brokerage clients	66,281,880,529.57	67,389,968,518.46
Funds payable to securities issuers			323,062,962.16
Payroll payable	4,365,422,110.82	4,388,230,717.06
Taxes payable	1,786,552,836.67	1,761,215,662.79
Accounts payable	7,429,859,993.20	1,703,278,685.18
Contract liability
Liabilities held for sale
Provisions
Long-term borrowings	2,127,723,597.22	2,114,295,863.89
Bonds payables	106,738,499,142.70	99,870,431,188.08
Including: Preferred shares
Perpetual bonds
Lease liabilities	484,841,955.41	489,767,980.26
Deferred tax liabilities
Other liabilities	581,237,069.92	590,316,777.15
Total liabilities	272,669,393,893.15	260,247,638,293.64
Equity (or shareholders' equity):
Paid-in capital (or share capital)	13,064,200,000.00	13,064,200,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve	74,772,635,006.20	74,772,635,006.20
Less: treasury shares
Other comprehensive income	-196,467,555.55	499,137,706.73
Surplus reserve	7,663,172,125.37	7,663,172,125.37
General risk reserve	15,326,344,250.74	15,326,344,250.74
Retained profits	28,989,876,281.37	26,119,698,623.49
Total equity (or shareholders' equity)	139,619,760,108.13	137,445,187,712.53
Total liabilities and equity (or shareholders' equity)	412,289,154,001.28	397,692,826,006.17
Person in charge of the Company: Zhou Jie Chief Financial Officer: Zhang Xinjun	Person responsible for the
		accounting affairs: Ma Zhong

13

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

January to March 2021

Prepared by: Haitong Securities Co., Ltd.

		Unit: Yuan	Currency: RMB
Items		First quarter of 2021	First quarter of 2020
I.	Total operating income	11,191,995,550.77	6,986,305,235.49
	Net fee and commission income	3,565,439,531.54	2,741,587,069.28
	Including: Net income from brokerage business	1,342,811,983.75	1,269,032,431.09
	Net income from investment banking business	1,289,256,193.11	729,841,440.94
	Net income from asset management business	859,862,393.58	660,756,220.61
	Net interest income	1,663,343,506.51	1,159,974,856.15
	Including: Interest income from financial assets	3,758,184,244.13	3,578,866,082.09
	Finance lease income	910,697,382.16	991,877,239.32
	Interest expenses	-3,005,538,119.78	-3,410,768,465.26
	Investment gains (losses are denoted by "-")	4,952,257,280.67	2,820,780,688.76
	Including: Gains attributable to investment in associates and joint ventures	142,425,600.55	111,696,914.37
	Gains from net exposure hedges (losses are denoted by "-")
	Other income	448,375,177.33	406,332,184.97
	Gains arising from fair value changes (losses are denoted by "-")	-1,933,821,527.60	-1,455,386,437.11
	Foreign exchange gains (losses are denoted by "-")	47,536,808.04	230,934,500.48
	Other operating income	2,476,037,888.35	1,087,955,786.38
	Gains from disposal of assets (losses are denoted by "-")	-27,173,114.07	-5,873,413.42
II.	Total operating expenses	5,977,842,966.27	3,817,216,999.17
	Tax and surcharges	67,458,728.34	60,338,078.16
	Business and management expenses	3,237,522,372.45	2,223,596,073.01
	Credit impairment loss	415,204,801.65	692,603,614.07
	Impairment losses on other assets	14,419,379.77	39,342,087.13
	Other operating cost	2,243,237,684.06	801,337,146.80
III.	Operating profit (losses are denoted by "-")	5,214,152,584.50	3,169,088,236.32
	Add: Non-operating income	12,868,720.27	23,390,723.16
	Less: Non-operating expenses	13,315,563.74	39,338,333.16
IV.	Profit before income tax (total losses are denoted by "-")	5,213,705,741.03	3,153,140,626.32
	Less: Income tax expense	1,285,292,972.84	869,566,957.51
V.	Net profit (net losses are denoted by "-")	3,928,412,768.19	2,283,573,668.81
	(I) Classified based on continuing operation

1.	Net profit from continuing operation
	(net losses are denoted by "-")	3,928,423,757.67	2,284,569,735.53
2.	Net profit from discontinued operation
	(net losses are denoted by "-")	-10,989.48	-996,066.72
(II) Classified based on the nature of ownership
1.	Net profit attributable to shareholders of the Company
	(net losses are denoted by "-")	3,617,629,936.73	2,282,724,851.44
2.	Profit or loss attributable to non-controlling interests
	(net losses are denoted by "-")	310,782,831.46	848,817.37

14

CONSOLIDATED INCOME STATEMENTS (UNAUDITED) (Continued)

		Unit: Yuan	Currency: RMB
Items		First quarter of 2021	First quarter of 2020
VI.	Other comprehensive income, net of tax	-712,572,183.67	-313,659,440.33
	Other comprehensive income, net of tax, attributable to
	owners of the Company	-783,893,120.63	-547,365,541.81
	(I) Other comprehensive income that will not be reclassified to
	profit or loss	-707,639,602.58	-486,380,853.42
	1. Changes arising from re-measurement of defined
	benefit obligations	33,857.05

2. Other comprehensive income that cannot be transferred to profit or loss under the equity method

		3.	Changes in fair value of investments in other equity instruments	-707,673,459.63	-486,380,853.42
		4.	Changes in the fair value of the Company's own credit risk
	(II)	Other comprehensive income that will be reclassified to profit or loss	-76,253,518.05	-60,984,688.39
		1.	Other comprehensive income that can be transferred
			to profit or loss under the equity method		17,688.41	-52,845,007.38
		2.	Changes in fair value of other debt investments		-40,616.70	147,514,639.03
		3.	Financial assets reclassified to other comprehensive income
		4.	Credit impairment provisions of other debt investments		-214,917.66	1,624,509.00
		5.	Reserve for cash flow hedging	-26,125,767.27	-29,460,783.57
		6.	Exchange differences from translation of financial
			statements denominated in foreign currencies	-49,889,904.83	-127,808,599.71
		7.	Other			-9,445.76
	Other comprehensive income, net of tax, attributable to
	the non-controlling interests	71,320,936.96	233,706,101.48
VII.	Total comprehensive income	3,215,840,584.52	1,969,914,228.48
	Total comprehensive income attributable to owners of the Company	2,833,736,816.10	1,735,359,309.63
	Total comprehensive income attributable to the non-controlling interests	382,103,768.42	234,554,918.85
VIII.	Earnings per share:
	(I)	Basic earnings per share (RMB/Share)		0.28	0.20
	(II)	Diluted earnings per share (RMB/Share)		0.28	0.20
Person in charge of the Company: Zhou Jie Chief Financial Officer: Zhang Xinjun	Person responsible for the
					accounting affairs: Ma Zhong

15

INCOME STATEMENTS OF THE PARENT COMPANY (UNAUDITED) January to March 2021

Prepared by: Haitong Securities Co., Ltd.

		Unit: Yuan	Currency: RMB
Items		First quarter of 2021	First quarter of 2020
I.	Total operating income	5,586,363,074.17	3,936,282,820.53
	Net fee and commission income	2,099,833,483.57	1,650,840,406.34
	Including: Net income from brokerage business	1,082,976,965.43	1,089,384,111.57
	Net income from investment banking business	953,043,977.30	515,649,643.58
	Net income from asset management business
	Net interest income	674,591,064.15	655,911,585.02
	Including: Interest income	2,245,261,293.22	2,119,389,139.64
	Interest expenses	-1,570,670,229.07	-1,463,477,554.62
	Investment gains (losses are denoted by "-")	2,564,014,144.14	1,367,764,300.54
	Including: Gains attributable to investment in associates and joint ventures	140,044,327.50	71,104,000.00
	Gains from net exposure hedging (losses are denoted by "-")
	Other income	283,091,068.07	318,801,508.16
	Gains arising from fair value changes (losses are denoted by "-")	-98,448,771.07	-18,802,348.09
	Foreign exchange gains (losses are denoted by "-")	61,473,090.79	-40,369,891.23
	Other operating income	1,703,745.54	2,141,562.12
	Gains from disposal of assets (losses are denoted by "-")	105,248.98	-4,302.33
II.	Total operating expenses	1,733,018,151.57	1,257,622,569.66
	Tax and surcharges	46,078,681.30	33,868,169.94
	Business and management expenses	1,686,382,417.04	976,496,943.82
	Credit impairment loss	300,952.26	246,958,670.87
	Impairment losses on other assets
	Other operating cost	256,100.97	298,785.03
III.	Operating profit (losses are denoted by "-")	3,853,344,922.60	2,678,660,250.87
	Add: Non-operating income	4,573,141.19	21,618,762.90
	Less: Non-operating expenses	275,657.40	11,691,596.52
IV.	Profit before income tax (total losses are denoted by "-")	3,857,642,406.39	2,688,587,417.25
	Less: Income tax expense	987,464,748.51	590,088,957.92
V.	Net profit (net losses are denoted by "-")	2,870,177,657.88	2,098,498,459.33
	(I) Net profit from continuing operation (net losses are denoted by "-")	2,870,177,657.88	2,098,498,459.33
	(II) Net profit from discontinued operation (net losses are denoted by "-")

16

INCOME STATEMENTS OF THE PARENT COMPANY (UNAUDITED) (Continued)

		Unit: Yuan	Currency: RMB
Items		First quarter of 2021	First quarter of 2020
VI.	Other comprehensive income, net of tax	-695,605,262.28	-389,414,701.72
	(I) Other comprehensive income that will not be reclassified
	subsequently to profit or loss	-708,361,530.99	-564,729,007.61

1. Changes arising from re-measurement of defined benefit obligations
2. Other comprehensive income that cannot be transferred to profit or loss under the equity method

3.	Changes in fair value of investments in other equity instruments	-708,361,530.99	-564,729,007.61
4.	Changes in the fair value of the Company's own credit risk
(II) Other comprehensive income that will be reclassified to profit or loss	12,756,268.71	175,314,305.89

1. Other comprehensive income that can be transferred to profit or loss under the equity method

2.	Changes in fair value of other debt investments	13,576,066.19	172,528,019.87
3.	Financial assets reclassified to other comprehensive income
4.	Credit impairment provisions of other debt investments	-819,797.48	2,786,286.02

1. Reserve for cash flow hedging
2. Exchange differences from translation of financial statements denominated in foreign currencies
3. Other

VII. Total comprehensive income	2,174,572,395.60	1,709,083,757.61
Person in charge of the Company: Zhou Jie	Chief Financial Officer: Zhang Xinjun	Person responsible for the
		accounting affairs: Ma Zhong

17

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) January to March 2021

Prepared by: Haitong Securities Co., Ltd.

Unit: Yuan Currency: RMB

Items

First quarter of 2021 First quarter of 2020

1. Cash flows from operating activities:

	Net decrease in financial assets held for trading	10,609,105,868.76
	Cash received from interests, fees and commission	8,806,474,268.60	7,871,909,204.14
	Net increase in placements from banks and other financial institutions	821,709,938.33
	Net increase in cash from repurchase business	14,006,485,252.81	17,015,306,510.99
	Net decrease in margin loan
	Net cash received from securities trading agency services		9,214,391,921.71
	Cash received relating to other operating activities	15,323,586,379.21	4,754,091,846.78
	Sub-total of cash inflows from operating activities	49,567,361,707.71	38,855,699,483.62
	Net increase in financial assets held for trading		13,211,584,169.63
	Net decrease in placements from banks and other financial institutions		2,425,533,573.05
	Net increase in margin loan	6,626,492,506.43	2,006,753,546.52
	Net cash paid for securities trading agency services	1,035,773,981.04
	Cash payment of interest, fees and commissions	1,977,393,973.08	2,769,103,476.11
	Cash paid to and on behalf of employee	2,523,229,815.37	2,172,425,282.09
	Payment for taxes and levies	1,889,663,353.85	1,118,839,516.59
	Cash paid relating to other operating activities	7,585,304,350.56	11,266,734,703.10
	Sub-total of cash outflows from operating activities	21,637,857,980.33	34,970,974,267.09
	Net cash flows from operating activities	27,929,503,727.38	3,884,725,216.53
II.	Cash flows from investing activities:
	Cash received from sales of investments	10,468,818,839.57	4,079,023,389.23
	Cash received from return on investment	1,314,383,667.36	509,330,443.78
	Net cash received from disposal of fixed assets,
	intangible assets and other long term assets	1,223,248.51	1,670,716.18
	Net cash received from disposal of subsidiaries and
	other operating business units
	Cash received relating to other investing activities
	Sub-total of cash inflows from investing activities	11,784,425,755.44	4,590,024,549.19
	Cash paid for investments	6,689,942,440.33	4,949,595,834.92
	Cash paid for acquisition of fixed assets,
	intangible assets and other long term assets	185,672,073.15	3,017,856,154.93
	Net cash payments for acquisition of subsidiaries and
	other operating business units
	Cash paid relating to other investing activities
	Sub-total of cash outflows from investing activities	6,875,614,513.48	7,967,451,989.85
	Net cash flows from/(used in) investing activities	4,908,811,241.96	-3,377,427,440.66

18

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

Unit: Yuan Currency: RMB

Items

First quarter of 2021 First quarter of 2020

1. Cash flows from financing activities:

	Cash received from capital injection		656,831.64	11,167,639.92
	Including: Cash received from capital injection of
	non-controlling interests in subsidiaries		656,831.64	11,167,639.92
	Cash received from borrowings	5,835,478,032.76	27,537,514,536.84
	Cash received from bond issued	38,631,431,535.53	31,405,121,383.93
	Cash received relating to other financing activities
	Sub-total of cash inflows from financing activities	44,467,566,399.93	58,953,803,560.69
	Cash repayment of borrowings	49,209,176,807.03	35,762,861,984.81
	Cash paid for distribution of dividends or profit,
	or for interest expenses	1,346,544,166.25	1,743,058,487.26
	Including: Dividends and profits paid to non-controlling
	interests by subsidiaries	83,044,593.84	65,135,971.67
	Cash paid relating to other financing activities	72,924,646.16	137,660,209.29
	Sub-total of cash outflows from financing activities	50,628,645,619.44	37,643,580,681.36
	Net cash flows (used in)/from financing activities	-6,161,079,219.51	21,310,222,879.33
IV.	Effects of changes in foreign exchange rates on cash and
	cash equivalents	132,038,644.74	478,510,462.03
V.	Net increase in cash and cash equivalents	26,809,274,394.57	22,296,031,117.23
	Add: Cash and cash equivalents at the beginning of the period	137,311,262,918.57	123,829,492,862.52
VI.	Cash and cash equivalents at the end of the period	164,120,537,313.14	146,125,523,979.75
Person in charge of the Company: Zhou Jie Chief Financial Officer: Zhang Xinjun	Person responsible for the
			accounting affairs: Ma Zhong

19

STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY (UNAUDITED) January to March 2021

Prepared by: Haitong Securities Co., Ltd.

Unit: Yuan Currency: RMB

Items

First quarter of 2021 First quarter of 2020

1. Cash flows from operating activities:

	Net decrease in financial assets held for trading	5,491,087,159.85
	Cash received from interests, fees and commission	4,562,839,439.32	3,927,561,852.64
	Net increase in placements from banks and other financial institutions	1,100,000,000.00
	Net increase in cash from repurchase business	8,426,961,511.79	15,277,520,686.48
	Net decrease in margin loan
	Net cash received from securities trading agency services		7,175,759,981.56
	Cash received relating to other operating activities	5,039,389,902.46	400,999,459.22
	Sub-total of cash inflows from operating activities	24,620,278,013.42	26,781,841,979.90
	Net increase in financial assets held for trading		7,324,947,379.27
	Net cash paid for securities trading agency services	1,107,834,101.34
	Net increase in margin loan	5,701,613,883.52	3,041,781,697.88
	Net decrease in placements from banks and other financial institutions		2,086,760,416.67
	Cash paid for interests, fees and commission	958,923,043.15	930,568,924.42
	Cash paid to and on behalf of employee	1,288,299,315.13	970,307,675.03
	Payment for taxes and levies	1,216,233,177.87	584,523,271.40
	Cash paid relating to other operating activities	1,781,709,003.87	1,436,240,263.59
	Sub-total of cash outflows from operating activities	12,054,612,524.88	16,375,129,628.26
	Net cash flows from operating activities	12,565,665,488.54	10,406,712,351.64
II.	Cash flows from investing activities:
	Cash received from sales of investments	9,339,000,000.00	1,372,075,353.77
	Cash received from return on investment	1,445,533,516.75	97,932,735.79
	Net cash received from disposal of fixed assets,
	intangible assets and other long term assets	1,221,959.38	1,662,846.18
	Cash received relating to other investing activities
	Sub-total of cash inflows from investing activities	10,785,755,476.13	1,471,670,935.74
	Cash paid for investments	4,540,046,340.86	700,324,943.66
	Cash paid for acquisition of fixed assets,
	intangible assets and other long term assets	161,082,444.75	1,542,797,711.19
	Cash paid relating to other investing activities
	Sub-total of cash outflows from investing activities	4,701,128,785.61	2,243,122,654.85
	Net cash flows from/(used in) investing activities	6,084,626,690.52	-771,451,719.11

20

STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY (UNAUDITED) (Continued)

	Unit: Yuan	Currency: RMB
Items	First quarter of 2021	First quarter of 2020

1. Cash flows from financing activities:

	Cash received from capital injection
	Cash received from borrowings
	Cash received from bond issued	24,099,672,300.00	25,558,086,000.00
	Cash received relating to other financing activities
	Sub-total of cash inflows from financing activities	24,099,672,300.00	25,558,086,000.00
	Cash repayment of borrowings	22,781,856,000.00	24,368,836,000.00
	Cash paid for distribution of dividends or profit,
	or for interest expenses	856,751,071.39	869,422,682.61
	Cash paid relating to other financing activities	52,219,122.03	61,358,388.21
	Sub-total of cash outflows from financing activities	23,690,826,193.42	25,299,617,070.82
	Net cash flows from financing activities	408,846,106.58	258,468,929.18
IV.	Effects of changes in foreign exchange rates on cash
	and cash equivalents	7,181,417.96	20,029,888.66
V.	Net increase in cash and cash equivalents	19,066,319,703.60	9,913,759,450.37
	Add: Cash and cash equivalents at the beginning of the period	91,698,084,523.06	81,892,823,582.56
VI.	Cash and cash equivalents at the end of the period	110,764,404,226.66	91,806,583,032.93
Person in charge of the Company: Zhou Jie Chief Financial Officer: Zhang Xinjun	Person responsible for the
			accounting affairs: Ma Zhong

1. INFORMATION RELATED TO THE ADJUSTMENT ON THE FINANCIAL STATEMENTS OF THE BEGINNING OF THE YEAR IN RESPECT OF THE FIRST IMPLEMENTATION OF NEW LEASING STANDARDS COMMENCING FROM 2021
2. • Applicable √ Not applicable
3. EXPLANATION FOR THE RETROSPECTIVE ADJUSTMENT TO PREVIOUS COMPARABLE DATA IN RESPECT OF FIRST IMPLEMENTATION OF NEW LEASING STANDARDS COMMENCING FROM 2021
4. • Applicable √ Not applicable
5. AUDIT REPORTS
6. • Applicable √ Not applicable

21