Haitong Securities Co., Ltd. provided preliminary earnings guidance for the year ended 31 December 2023. For the year, the company expects net profit attributable to owners of the parent company to be between RMB 918.00 million to RMB 1,010.00 million, representing a decrease of RMB 5,535.35 million to RMB 5,627.35 million or 84.57% to 85.97% as compared with that for the corresponding period of last year. The net profit attributable to owners of the parent company after deducting non-recurring gain or loss to be between RMB 185.00 million to RMB 277.00 million, representing a decrease of RMB 5,625.10 million to RMB 5,717.10 million or 95.31% to 96.87% as compared with that for the corresponding period of last year.

During the Reporting Period, the Company experienced a significant decline in the valuation of its overseas financial assets due to market volatility and substantial interest rate hikes by central banks of Europe and the United States of America, which also led to a substantial increase in overseas interest expenses. There was a decrease in revenue from certain business segments compared to the previous year. In addition, due to a smaller comparative base from the previous year, the provision made by the Company for impairment on credit assets in the Reporting Period increased as compared to the previous year.