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2016 Interim Results

August 2016

(A joint stock company incorporated in the PRC with limited liability

under the Chinese corporate name 华泰证券股份有限公司and carrying

on business in Hong Kong as HTSC)


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1

Agenda

2 2

2 3

2 1

Financial overview

Business overview

Company overview

2 4 Development strategy


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Company overview

Financial overview

Business overview

Agenda

Development strategy


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3

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

1/2/2014 8/17/2014 4/2/2015 11/15/2015 6/30/2016

Shanghai Composite Index

Shenzhen Composite Index

Hang Seng Index

FTSE 100

S&P 500

Market Environment

Performance of key market indices1

China’s stock market continued to develop despite the volatile environment in 1H16

Sources: Securities Association of China, Wind, Zero2IPO Research

Note: 1. All indexes are rebased to the beginning level of Shanghai Composite Index

Marginal financing and securities

lending (MFSL) balance Stock trading volume

Low: 347

High: 2,273

Current:854

0

500

1,000

1,500

2,000

2,500

1/2/2014 8/2/2014 3/2/2015 10/2/2015 5/2/2016

Equity and debt issuance amount

696 812

8,945

18,372

1H15 1H16

Equity Debt(RMBbn)

(RMBbn)

443

784

1H15 1H16

Chinese M&A transaction value

(RMBbn)

0

500

1,000

1,500

2,000

2,500

01/02/14 08/02/14 03/02/15 10/02/15 05/02/16

High:2,356

Low:111

Current: 575

(RMBbn)

2016/6/30

+38.5%

+86.7%

+13.6%

(10.8%) (3.6%)

AUM of securities companies

11.9

15.0

2015 1H16

(RMBtn)

2016/6/30


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128.G128.B128

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4

Business Highlights

Ranked #1 in terms of stock and fund trading

volume for 3 consecutive years and maintained

growth for 4 consecutive years

Source: Company data

Strengthening leadership Pursuing breakthrough

ZhangLe WM ranked #1 in terms of number of

active users among all apps of securities

companies

Ranked #1 in terms of number of M&A

transactions by Chinese listed companies for 5

consecutive years

Ranked #3 in terms of market value of entrusted

assets for 3 consecutive years

Ranked #3 in terms of size of the capital

intermediary business for 3 consecutive years

15 million cumulative app downloads of

ZhangLe WM

Ranked #1 in terms of balance of client deposits

AUM surpassed RMB800bn and ranked #2

among securities companies

Ranked #2 in terms of marginal financing and

securities lending (MFSL) balance

Ranked #3 in terms of equity underwriting

amount


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5

Business Performance Overview

Net profit

272,226

452,615 402,679

41,299 80,785 79,737

2014 2015 1H16

Total assets Net assets

Total assets and net assets

ROAA and ROAE1 1H16 revenue breakdown

Overall performance decreased meaningfully YoY in 1H16 but remained one of the best first half performers

1,533

6,719

2,944

1H14 1H15 1H16

(RMBmm)


Note： 1. Non-annualized data, ROAA = net profit/average total assets, ROAE = net profit/average net assets

Brokerage

and wealth

management

45.4% Investment

banking

8.9%

Asset

management

12.3%

Investment

and trading

7.3%

Overseas

business

and others

2.1%

Capital

intermediary

24.1%

1.43%

4.1%

1.58%

15.3%

0.69%

3.6%

ROAA ROAE

1H14 1H15 1H16

(RMBmm)


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128.G128.B128

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6

Company Overview

Financial overview

Business overview

Agenda



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128.G128.B128

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7

5,683

21,289

11,581

1H14 1H15 1H16

Outperformed Industry in spite of Decreases in Revenue and Profit

Revenue

Operating profit and net profit

Cost-to-income ratio

Source: Company data, financial report (IFRS)

Earnings per share

66.3%

59.4%

68.1%

1H14 1H15 1H16

1,915

8,636

3,692

1,533

6,719

2,944

1H14 1H15 1H16

Operating profit Net profit

0.27

1.14

0.40

1H14 1H15 1H16

(RMBmm)

(RMBmm) (RMB)


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128.G128.B128

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8

Strong Growth in Investment Banking and Asset Management Businesses against the

Headwind

Brokerage and wealth management revenue

Asset management revenue

Investment banking revenue

Investment and trading revenue

3,420

15,655

8,053

1H14 1H15 1H16

(RMBmm)

545

745

1,026

1H14 1H15 1H16

502

957

1,426

1H14 1H15 1H16

1,046

2,966

839

1H14 1H15 1H16

(RMBmm)

(RMBmm) (RMBmm)



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128.G128.B128

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color 1

1st level bullet

R72.G178.B217

color 3

R171.G131.B65

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R200.G200.B150

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9

Continuous Rebalancing of Revenue Mix


Brokerage

and wealth

management

46.4% Investment

banking

9.0%

Asset

management

8.6%

Investment

and trading

15.1%

Overseas

business

and others

2.7%

Brokerage

and wealth

management

52.2%

Investment

banking

4.8%

Asset

management

6.3%

Investment

and trading

11.4%

Overseas

business

and others

5.0%

Brokerage

and wealth

management

45.4% Investment

banking

8.9%

Asset

management

12.3%

Investment

and trading

7.3%

Overseas

business

and others

2.1%

Capital

intermediary

24.1%

Capital

intermediary

20.3% Capital

intermediary

18.1%

FY2015 revenue breakdown 1H16 revenue breakdown FY2014 revenue breakdown


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128.G128.B128

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1st level bullet

R72.G178.B217

color 3

R171.G131.B65

color 6

R200.G200.B150

color 2

R173.G173.B173

color 7

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134,209

1,064

52,851

175 22,061

112,582

79,737

26,189

39,782

56,725

93,203

27,744

51,456

107,580

138,051

1,048

69,374

1,053 33,192

128,367

81,529

52,208

12,494

36,707

130,038

21,791

67,432

131,945

452,615 452,615

As of 30 June 2016

Flexible and Effective Liability and Liquidity Management Supports Business Growth


(RMBmm)

As of 31 December 2015

• Huatai Zijin Investment increased its registered capital from RMB2.35bn to

RMB4.05bn

• Huatai Futures raised its registered capital from RMB809mm to RMB1bn

• Huatai Financial Holdings (Hong Kong) obtained No Objection Letter from

CSRC with regards to capital increase of HKD7.8bn after the reporting period

During the reporting period, HTSC completed repayment as follows:

• Interests of 2 tranches of corporate bonds (RMB770.4mm with tax included)

• Principals and interests of 2 tranches of subordinated bonds (RMB10,577mm

with tax included), of which 1 tranche was completely redeemed by exercising

the issuer redemption option at the end of the first year

• Interests of 3 tranches of subordinated bonds (RMB1,634mm with tax included)

Total assets

Other assets

Financial assets

available for sale

Cash and bank balances

Financial assets at fair

value through profit or loss

Financial assets held

under resale agreements

Margin accounts

receivable

Cash held on behalf of

brokerage clients

Net assets

Account payable to

brokerage clients

Financial assets sold

under repurchase

agreements

Short-term debt

instruments issued

Long-term bonds

Other debt

Other liabilities

Liabilities + Net assets

Capital raise by subsidiaries Bond repayment

402,679 402,679 (RMBmm)

Other assets

Financial assets available

for sale

Cash and bank balances

Financial assets at fair

value through profit or loss

Financial assets held

under resale agreements

Margin accounts

receivable

Cash held on behalf of

brokerage clients

Net assets

Account payable to

brokerage clients

Financial assets sold

under repurchase

agreements

Short-term debt

instruments issued

Long-term bonds

Other debt

Other liabilities

Total assets Liabilities + Net assets


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R192.G192.B192

Text

R0.G0.B0

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Dk. divider line

128.G128.B128

Charts

color 1

1st level bullet

R72.G178.B217

color 3

R171.G131.B65

color 6

R200.G200.B150

color 2

R173.G173.B173

color 7

R120.G120.B120

color 5

R163.G145.B97

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R153.G0.B0

color 8

R240.G231.B215

color 4

R150.G150.B150

color 1

R72.G178.B217

color 3

R171.G131.B65

color 6

R200.G200.B150

color 7

R120.G120.B120

color 5

R163.G145.B97

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R153.G0.B0

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11

Company Overview

Financial Overview

Business overview

Agenda



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2nd, 3rd & 4th

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R192.G192.B192

Text

R0.G0.B0

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Dk. divider line

128.G128.B128

Charts

color 1

1st level bullet

R72.G178.B217

color 3

R171.G131.B65

color 6

R200.G200.B150

color 2

R173.G173.B173

color 7

R120.G120.B120

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12

1.5

2.6 2.3

2014 2015 1H16

Market share

89

105

92

2014 2015 1H16

53

114

82

2014 2015 1H16

12.4

45.2

11.7

2014 2015 1H16

Strengthening Leadership in Brokerage and Wealth Management Business

Balance of client deposits Size of capital intermediary business

Further strengthening leadership in brokerage business and maintaining market position in capital intermediary business through

product and service expansion and O2O platform enhancement

(RMBtn)


(RMBtn)

Market share 7.9% 8.3% 3.8% 4.6% 8.5% 4.5%

(RMBbn) (RMBbn)

6.5% 5.7% Market share 5.2% 4.8% 5.5% 5.3%

Stocks and funds trading volume Market value of client entrusted securities

Ranking Ranking 1 1 1 3 3 3

Ranking Ranking 3 3 1 3 3 3

Market share


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R192.G192.B192

Text

R0.G0.B0

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Dk. divider line

128.G128.B128

Charts

color 1

1st level bullet

R72.G178.B217

color 3

R171.G131.B65

color 6

R200.G200.B150

color 2

R173.G173.B173

color 7

R120.G120.B120

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R153.G0.B0

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13

656

924 980

2014 2015 1H16

233

893

250

2014 2015 1H16

43

134

78

2014 2015 1H16

27 41

2015 1H16

22 34

2015 1H16

Strengthening Leadership in Brokerage and Wealth Management Business (Cont’d)

Mutual funds distribution Entrusted fund and outsourced business scale

Expansion of customer base and optimization of customer mix, steady transformation of wealth management business model,

ongoing improvement of high net worth individuals and institutional client services, and continuous business innovation and

enhancement


3.1% 4.9% 4.9%

Entrusted fund business

Private fund outsourcing business

(RMBbn)

(RMBbn)

307 514

269 504

Number of brokerage and wealth management clients Value of financial products distributed

(10 thousands)

(RMBbn)

(RMBbn)

1,850 2,366 2,795 Financial

products

for sale

Market share # of products

for sale

# of products

for sale


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14

Leading Mobile Finance Franchise

An industry leading mobile financial service platform

To further enhance competitive edges in mobile financial services through client-centric principles and centralized marketing

efforts

ZhangLe WM is driving customer services and customer stickiness

1,830k Daily active users

15,160k 555k

93%

Cumulative downloads and

users on platform

# of accounts opened on

mobile terminals

% of new account

opening

37%

% of transaction

value

78%

% of transacting

clients

Source: Company data, Analysys, TalkingData, Quest

Note: 1. As of June 30, 2016

Centralized

marketing

Centralized

services

Centralized

operations

ZhangLe

WM

platform

Online marketing platform around ZhangLe WM

1

ZhangLe WM ranked #1 among trading app

developed by securities companies as of

June 2016

1

ZhangLe WM ranked #1 in terms of user

activeness and coverage among all traditional

securities apps1

3 On 2016 TOP1,000 APP in China, ZhangLe

WM ranked #3 in terms of number of monthly

active users among stock trading APPs,

following only Flush and Great Wisdom

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCKbO7cfFoccCFUPnpgodiUwCvA&url=http://www.eventbrite.com/e/talkingdata-hosts-chinese-game-market-analysis-dinner-tickets-10929661913&ei=WS_KVea9DsPOmwWJmYngCw&psig=AFQjCNG3X2e6yWgc3yIykAeVzX5kOcuoLA&ust=1439400114946264


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15

12,996

28,335

54,422

1H14 1H15 1H16

11,592 20,613

39,328

1H14 1H15 1H16

10 10

22

29

8

2012 2013 2014 2015 1H16

No.1 M&A advisor to Chinese listed companies for 5

consecutive years2

Dominant M&A Franchise and Steady Growing Underwriting Business

Industry leading M&A capabilities substantially raised brand awareness. Strategic partnership with high quality clients generates

business opportunities. Focus on new business during execution of landmark deals and innovative business model

Source: MergerMarket, company information, Wind

Note:

1. Number of greater China M&A transactions by MergerMarket

2. Number of transactions is based on transactions approved by CSRC

3. Equity underwriting includes IPO, private placement, public follow-on offering and rights issue; Would rank #1 in terms of number of ECM transactions in 2015 if counting 8 exchangeable bonds and 1 convertible bond

4. Debt underwriting includes corporate bonds, enterprise bonds, commercial paper, medium term note, financial bonds, government backed agency debts, convertible bonds, exchangeable bonds, asset-backed

securities, and placement tools

Equity underwriting volume and ranking3 Debt underwriting volume and ranking4

Ranking Financial advisor Number of transactions

1 Huatai Securities 29

2 CICC 25

3 China Renaissance 21

4 Morgan Stanley 19

5 Goldman Sachs 16

6 Southwest Securities 16

6 UBS 15

8 China Securities 15

8 Haitong Securities 14

10 GF Securities 14

Leading M&A house in 1H161

(RMBmm) (RMBmm)

(Number of transactions)

1 1 1 1 1

Ranking 7 5 3

Ranking 18 14 12

13 24 18 Number of

transactions 17 21 49 Number of

transactions

Ranking


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16

Dominant M&A Franchise and Steady Growing Underwriting Business (Cont’d)

Source: Company information, Wind

A market leader with successful cases

Yangtze Power acquired 100% shareholding

in Chuanyun Company for RMB79.7 billion

through a stock and cash deal

The deal showcased significant innovation

in obtaining administrative approval and

M&A approval

The deal is well recognized by Three

Gorges Group, Yangtze Power, and the

broader market

The deal demonstrated Huatai’s outstanding

capability in advising M&A restructuring

transactions for large-scale SOE clients

Restructuring of China Yangtze Power, a new

chapter for serving SOE clients

In April 2016, Focus Media successfully

launched a non-public offering of 253

million shares to raise RMB5bn

Largest A-share re-listing by Chinese

Concepts Stocks to date, marking a

milestone among similar type of transactions

The success was attributed to meeting the

needs of international shareholders by

introducing domestic strategic investors

and the cash + stock shell arrangement

and taking into consideration of the

uniqueness of the A-share market

A-share relisting by Focus Media

State Power Investment’s public offering of

renewable corporate bonds with total

issuance amount of up to RMB20bn and the

1st issuance size of RMB4bn

1st renewable corporate bonds issued by an

SOE

1st renewable corporate bonds issued by a

power company

1st renewable corporate bonds underwritten

by Huatai Securities as a lead underwriter

1st renewable corporate bonds by an state-

owned power company

Acted as a sole lead underwriter for

GoerTek’s RMB1.5bn corporate bonds

5-year tenor, with interest rate step-up at

issuer’s option and bondholder redemption

option at the end of year 3

Both issuer and bond ratings of AA and coupon

rate at 4.28%, the lowest among all issuance

of similar type of products by private

companies during similar period of time

Active investor subscription with 3.83 times

subscription

Successfully raised low-cost bond financing for

a leading private company

Outstanding achievements in implementing the “professional division of work + systematic synergies” business model and the

“client manager + product specialist + industry expert” talent cultivation model

Number of listings sponsored and size of the private placement

102

1,369

1H15 1H16

9 21

(RMBmm)

NEEQ business focus

12 times

increase

Listings

sponsored

4 NEEQ projects covers well known and reputable companies in a wide range of fields

including online travelling, online education, online medical, media, and information

services. Well positioned to provide whole-chain services, including industrial

consolidation and investment and financing, to high quality TMT players

4 Leverage strengths of the investment banking in the healthcare industry to establish

partnership with multiple well-known healthcare institutional investors and biochemical

and pharmaceutical parks in various locations. The projects currently listed all

outperform the industry

4 Among top 10 NEEQ listings in 1H16 by issuance size, 2 were sponsored by Huatai.

The company will continue leverage advantages in M&A business and explore

inorganic opportunities for the clients by sourcing high quality acquisition targets

Emerging

features of the

TMT industry

Active expansion of

capital market

transaction services

Focus on

medical and

pharmaceutical

industry

Highlight summary


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17

Asset management business realizes tremendous growth, facilitating the transformation into wealth management business model.

Continue to improve management capacity, launch new flagship products, strengthen fixed income business, develop entrusted

business, expand institutional business, and lead innovation of asset-backed securitization. Financing business and bank-

securities business continue to grow

58 101 118 284 500

693 3

13 23

345

614

834

2014 2015 1H16

Collective AM Targeted AM Specialized AM

AUM of securities companies’ AM business

The Emerging Leading Position of the Asset Management Business

Upgrading by introducing four featured brands

(RMBbn)

AUM ranking

Active AUM

ranking

5 4

5 3 2

Cash product represented by

Daily Gain, Daily Facai, and Huobi

Zengqiang

Active management bond

product represented by

Zijin Serial

Assets securitization product

represented by JD Baitiao

Investment and

financing product

represented by Tou Rong Bao


Multiple breakthroughs in product and business innovation

Leading

scale

Ranked #3 in total size of new asset securitization products and #2

in issuance numbers in 1H16

21 specialized asset management programs with total AUM of

RMB23bn as of 30 June 2016

Large

ticket size

“JD Finance-Huatai Asset Management No. 1-5 JD Baitiao

Receivable Debt Asset-Backed Specialized Program” was

approved by Shenzhen Stock Exchange for a total AUM of

RMB10bn

“Huatai Asset Management-Bank of Jiangsu Rongyuan Series of

Asset-Backed Specialized Program” was approved by Shanghai

Stock Exchange for a total AUM of RMB10bn

Asset-backed securitization led industry innovation

Launched several landmark ABS products packaging underlying assets from

various financial sectors, e.g. banks, securities, and insurers

Huatai Asset Management-Bank of

Jiangsu Rongyuan No. 1 Asset-Backed

Specialized Program 6.4

Taiping Life Insurance Policy

Pledged Loan 2016 Asset-Backed

Specialized Program, Phase 1 5.0

JD Finance-Huatai Asset Management

2016 Factoring Contract Debt Asset-

Backed Program, Phase 1

20.0

Huatai Asset Management-Bank of

Jiangsu Rongyin No. 1 Asset-Backed

Specialized Program 5.0

(Size: RMB100mm)

1st notes

beneficiary rights

1st insurance

policy pledged

1st internet

factoring

1st bank notes

beneficiary rights

Completed a number of ground-breaking ABS programs in the country


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18

60

130

88

2014 2015 1H16

202

334 343

92

176 220

2014 2015 1H16

Mutual funds Non-mutual funds

AUM of affiliated mutual funds

The Emerging Leading Position of the Asset Management Business (Cont’d)

HTSC’s affiliated fund companies maintained steady development in scale while direct investment funds achieved rapid growth

Direct investment by Huatai Zijin Active in new fund setup and fund raising

4

16

29

2014 2015 1H16

Increased AUM by RMB9bn for Huatai Ruilian Funds Mergers (Limited

Partnership) under management by Huatai Ruilian Fund Management Co.,

Ltd

Huatai Ruilian set up a RMB10bn capital market parent fund to invest in

domestic private equity funds

Partnered with the local government to set up 4

industrial investment funds with total AUM of

RMB4.9bn

(RMBbn) (RMBbn)

Mutual fund

ranking 6 6 5 21 19 25

(RMBbn)

Number of

direct investment

funds

3 8 14

Mutual fund

ranking



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19

Equity investment and transactions

Continuous Optimization of Investment and Trading Strategies Led to Significant

Market-Beating Performance

Actively responding to challenges from changes in policy and market conditions, firmly implementing “non-directional” strategy,

effectively adjusting investment and trading strategies to promote synergies between on-exchange and OTC transactions and

actively sourcing new businesses

Fixed-income, forex, and commodities

4Adjust investment strategy and portfolio mix on timely basis to

achieve effective hedging and launch various types of spread

trading; has achieved NAV growth that significantly exceeded

that of China-Bond Composite Index

4Accelerate acquisition of various proprietary and agency forex

trading licenses to complete business presence

4Focus on expansion of trading categories and optimization of

trading models and active launching of structured gold lending

business

Bond

proprietary

Commodities

Actively launching non-directional investment businesses to

strengthen absolute-return principles; effectively adopting various

financial instruments and trading technologies to thoroughly improve

investment research capabilities; and fully exploring and seizing

investment opportunities. Huatai’s investment return outperformed

that of CSI 300 Index during the reporting period

1

On-market quantitative hedging investment business has achieved

transformation to a trading-based model. By actively conducting Alpha

strategy trading, the business has recorded a positive return during

the reporting period

2

Forex

15

25

2015 1H16

Number and market value of NEEQ market making clients

Source: Company filings

Notional value and number of transactions of OTC options

trading

107

248

567

2014 2015 1H16

8 36 72

(RMBmm)

Number of

market

making

clients

(RMBbn)

40 41 Number of

transactions


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20

37.0%

56.4%

75.6%

2014 2015 1H16

81.5% 73.0% 53.4%

2014 2015 1H16

69.2% 79.5% 70.1%

2014 2015 1H16

19.7%

39.7% 46.1%

2014 2015 1H16

53.2%

70.3% 61.0%

2014 2015 1H16

464%

881% 743%

2014 2015 1H16

Net capital / Risk capital provisions Net capital / Net asset

Value of fixed income securities held / Net capital

Prudent Risk Management Measures Effectively Responding to Market Dynamics

Value of equity securities and derivatives held / Net capital

Prudent and effective risk management policies ensure satisfying all regulatory requirements and allowing the company to develop

steadily

Net capital / Liabilities Net assets / Liabilities

100%

40%

8%

20%

500%

Source: Company filings

Note: 1. Red dotted lines represent regulatory requirements

100%


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21

Company Overview

Financial Overview

Business overview

Agenda



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22

Opportunities and Challenges in 2H16

3 Deepening market participation by institutions:

The increasing number of institutional investors create opportunities

to develop institutional businesses

Strengthening role of the capital market:

Supply-side reform and SOE reform, deleveraging and increasing

contribution by direct financing provide sustainable growth potential

for investment banking business

1

2 Robust household demand for wealth allocation:

Continued growth in household wealth, strong demand for broad

asset class allocation and shortage in investment opportunities drive

growth of wealth and asset management businesses

4

5 Emerging core competency:

Securities firms with strong strategic foresight and execution

capability stand out in the competitive environment

Increasing demand for risk management:

Liberalization of interest rate and exchange rate drives enhancement

of risk management capabilities, laying the foundation for FICC

businesses

3 Intensified homogenized competition:

As the pace of innovation slows down, securities companies are tested

for strategic vision, adaptability and flexibility amidst rising industry-wide

homogenized competition

1

2 Tightening financial regulation:

Tightening of regulation and intensified regulatory accountability pose

negative short-term effect on business growth but set up higher long-

term standards for securities companies

4

5

Decreasing market activeness:

In face of more challenging market environment signified by global

economic slowdown, continuous financial market volatility, cross-market

impact, decreasing stock trading volume

Faced with increasingly intensified cross-sector competition:

Penetration of internet finance and normalization of cross-sector

competition lead to more intense competition in commission rate for

brokerage business and in interest rate for capital-based intermediary

business

Source: Company filings, broker reports

Opportunities Challenges

Increasing credit risk exposure:

Increase in credit default events and transferring of financial risks have

posed greater challenges to business development and risk

management of securities companies


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23

Investment and trading

4 Continue to improve core competency in investment and trading business in the face of market volatility

4 Focus on diversification and market-neutral strategies, improve investment research capabilities, strengthen innovation in quantitative investment strategy,

deepen on-exchange and OTC capital intermediary businesses, broaden the presence and strengthen development of innovative businesses

4 For bond investment, strengthen market research capabilities to capture market opportunities, effectively hedge market volatility risk, strictly control credit risk exposure

and focus on expanding commodities and forex businesses

Development and Business Strategy in 2H16

3

Asset management

4 Promote active management capabilities and product innovation

4 Continue to strengthen market-leading businesses including fixed-income and financing, improve business diversity, expand alternative investment product

offering, launch mutual fund businesses, and solidify differentiated competitive advantages

4 Improve services for institutional clients, reduce exposure to bank-securities conduit business, solidify and expand first-mover advantages in asset-backed

securitization business, and strengthen financing and capital innovation

4 Improve comprehensive service capabilities and build up core capability and brand influence of direct investment funds

Brokerage and wealth management

4 Solidify market leadership, enhance mobile finance and the primary brokerage business, promote functional transformation of branches, maintain stable

development of credit business and accelerate the transformation into a wealth management model

4 Robust expansion of mid-to-high-end client resources, development of investment advisory team, and enhancement of comprehensive financial service expertise

to better leverage platform effect

4 Continue to build up strength of the research business and market pricing power by deepening industry knowledge

1

2

Investment banking

4 Provide tailored services based on clients’ different life cycles, further connect onshore and offshore markets, drive expansion of wealth management and asset

management businesses, and strictly control risks

4 Strengthen the key role of M&A business, strive for success with high quality M&A and refinancing businesses, focus on brand and reputation, and maintain the

industry leading position of the equity financing business

4 Capture bond underwriting business opportunities, drive business growth, and focus on product innovation and risk mitigation

4 Continue to invest in NEEQ, integrate financing business for growth companies, focus on key industries, and strengthen business origination capabilities

4

5

Overall strategy

4 Actively adapt to significant changes in market and regulatory environment, continue to implement whole value chain, mobile finance, financial innovation,

and international development strategies

4 Continue to expand customer base, develop client value, establish professional service system, and optimize customer base, business mix and asset-liability

structure

4 Continue to experiment new growth drivers, enhance compliance practice, and build differentiated core competency


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24

Disclaimer

This document is not for public dissemination and is for the exclusive use and information only of the persons to whom it is addressed and their advisers in connection with HTSC (a joint

stock company incorporated in the People’s Republic of China with limited liability under the Chinese corporate name 华泰证券股份有限公司 and carrying on business in Hong Kong as

HTSC, (the “Company”), together with its subsidiaries, hereinafter referred to as the “Group”). It is being made available by the Company to a limited number of recipients. The contents of

this document have not been reviewed by any regulatory authority in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and into whose

possession this document comes should inform themselves about, and observe such restrictions. Any failure to comply with this restriction may constitute a violation of the United States,

Canadian, PRC or Japanese securities laws or the laws of any such other jurisdictions. By accepting this document, you agree to be bound by the foregoing limitations.

This document has not been independently verified and is not intended to form, and nothing contained herein shall form, the basis of any investment decision, contract or commitment

whatsoever. It does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities in any jurisdiction in which the making of such offer,

solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction or would not otherwise be in compliance with the laws and regulations of

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This document does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate the Group. No representation or warranty, express or

implied, is given and, so far as is permitted by law and except in the case of fraud, no responsibility or liability is accepted by any person (for the avoidance of doubt, including but not limited

to, the Company, its affiliates, controlling persons, directors, supervisors, officers, partners, employees, agents, representatives or advisers of any of the foregoing), with respect to the

accuracy, reliability, correctness, fairness or completeness of this document or its contents or any oral or written communication in connection with the contents contained in this document.

This document may contain statements that reflect the Company’s current beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking

statements are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control and are subject to significant risks and uncertainties, and,

accordingly, actual results may differ materially from these forward-looking statements. These forward-looking statements are not a guarantee of future performance. Accordingly, you should

not place undue reliance on any forward-looking information. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be

placed on, any projections, targets, estimates or forecasts contained in this document. None of the Company, its affiliates, controlling persons, directors, supervisors, officers, partners,

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