China Merchants Securities : PRELIMINARY FINANCIAL DATA FOR THE YEAR 2019

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

(Stock Code: 6099)

PRELIMINARY FINANCIAL DATA FOR THE YEAR 2019

This announcement is made by China Merchants Securities Co., Ltd. (the "Company") pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and Rules 13.09 and 13.10B of the Listing Rules.

The major financial data for the year ended December 31, 2019 (the "Reporting Period") set out in this announcement, which are the preliminary accounting data, are prepared under the Chinese Accounting Standards for Business Enterprises in accordance with Article 11.3.5 of the Stock Listing Rules of the Shanghai Stock Exchange, and have not been audited. The final financial data should be those to be disclosed in the annual report of the Company for the year ended December 31, 2019.

The Company expects that the audited results of the Company and its subsidiaries for the year ended December 31, 2019 will be issued on or before March 31, 2020 in accordance with the requirements under the Listing Rules.

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1. MAJOR FINANCIAL DATA (UNAUDITED) AND INDICATORS FOR YEAR 2019

		Unit: RMB in ten thousand
		The
		corresponding
	The current	period of	Increase/
Item	Reporting Period	last year	Decrease
			(%)
Operating income	1,870,836.99	1,132,161.16	65.24
Operating profit	879,414.86	544,076.47	61.63
Profit before income tax	877,363.63	544,748.50	61.06
Profit attributable to shareholders of
the Company	728,238.08	442,498.59	64.57
Profit attributable to shareholders of
the Company after deducting
non-recurring gain or loss	730,494.56	441,958.91	65.29
Basic earnings per share
(RMB per share)	0.97	0.54	79.63
			Increased by 3.93
Weighted average return on net asset (%)	9.51%	5.58%	percentage points
		As of the end of
	As of the end of	the corresponding
	the current	period of last	Increase/
Item	Reporting period	year	Decrease
			(%)
Total assets	38,177,188.81	30,493,070.48	25.20
Equity attributable to shareholders of
the Company	8,504,832.01	8,072,284.64	5.36
Share capital	669,940.93	669,940.93	0.00
Net asset per share (RMB per share)*	10.46	9.81	6.63

Note:

• The net asset per share is calculated based on equity attributable to the shareholders of the Company after deducting other equity instrument (perpetual bonds).

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1. DESCRIPTION ON OPERATING RESULTS AND FINANCIAL POSITION
   In 2019, the China securities market was vibrant. The trading volume of stocks and funds on both the Shanghai Stock Exchange and the Shenzhen Stock Exchange recorded a year-on-year growth. Further, the bond market steadily grew with loose monetary policies. The Science and Technology Innovation Board was launched with a pilot registration system and the volume of IPO financing has experienced a significant increase. The Company has seized the market opportunities, firmly implemented the transformation strategies, focused on the improvement of performance, and achieved remarkable results. During the Reporting Period, the Company's brokerage business income, investment business income, and investment banking business income all achieved significant growth compared with the previous year. In 2019, the Company realised an operating income of RMB18.708 billion, representing an increase of 65.24% from the previous year; and realised net profits attributable to shareholders of the Company of RMB7.282 billion, representing an increase of 64.57% from the previous year.
2. RISK WARNING
   The major financial data for 2019 as set out in this announcement are preliminary financial data and may differ from those audited financial data to be disclosed in the annual report of the Company for 2019. However, such difference is not expected to exceed 10%. Investors are reminded to pay attention to the investment risks involved.
3. DOCUMENTS AVAILABLE FOR INSPECTION
   The comparable statement of financial position and income statement as duly sealed and signed by Mr. Huo Da, the current legal representative of the Company, Mr. Zhao Bin, officer in charge of accounting matters and Ms. He Min, officer in charge of the accounting office of the Company.

Shareholders of the Company and prospective investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board of Directors

China Merchants Securities Co., Ltd.

HUO Da

Chairman

Shenzhen, the PRC

March 10, 2020

As at the date of this announcement, the executive directors of the Company are Mr. HUO Da and Mr. XIONG Jiantao; the non-executive directors of the Company are Ms. SU Min, Mr. SU Jian, Mr. XIONG Xianliang, Ms. PENG Lei, Mr. GAO Hong, Mr. HUANG Jian, Mr. WANG Daxiong and Mr. WANG Wen; and the independent non-executive directors of the Company are Mr. XIANG Hua, Mr. XIAO Houfa, Mr. XIONG Wei, Mr. HU Honggao and Mr. WONG Ti.

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