Haitong Securities will hold its 2024 interim performance briefing on the afternoon of September 11.
Chairman Zhou Jie, General Manager Li Jun, Vice General Manager and CFO Zhang Xinjun, and Board Secretary Pei Changjiang attended the performance communication meeting. Chairman Zhou Jie actively responded to several hot issues of concern in the market.
Chairman Zhou Jie, when answering questions about the absorption and merger of Guotai Junan and Haitong Securities, stated, &#34;This restructuring is in line with the development strategies of both companies, conducive to resource sharing, complementary advantages, enhancing core competitiveness, further improving the level of continuous customer service, and the ability to serve the real economy.&#34;
Interestingly, Zhu Jian, Chairman of Guotai Junan, made a similar statement at Guojun's performance communication meeting the day before. At that time, Zhu Jian stated that the purpose of this restructuring is to respond to national strategies, promote the creation of a first-class investment bank, facilitate complementary advantages between the two parties, enhance core functions, improve the level of financial services to the real economy, contribute to further optimizing the financial state-owned assets layout in Shanghai, and promote the high-quality development of the securities industry.
In addition to the above issues, Chairman Zhou Jie also explained the reasons for Haitong Securities' increase in fund and non-standard investments in the first half of the year. He stated that this is the company's active response to the new &#34;Nine Articles of the State,&#34; playing the functional role of securities companies, and continuing to invest in fund market-making; at the same time, from the perspective of macro asset allocation, increasing investments in fixed-income funds.
When asked about the future of Haitong's public fund companies Haifutong and Fuguo Fund, as well as the merger timetable, Chairman Zhou Jie stated that, &#34;The specific cooperation plan of this restructuring is subject to the transaction documents further signed by both parties.&#34; This restructuring still needs to go through necessary internal decision-making procedures and must be formally implemented after approval by the competent regulatory authorities. There is still uncertainty about whether it can be implemented.
Vice President and CFO Zhang Xinjun, when asked about whether the provision for credit impairment losses in the first half of the year was sufficient, stated that the credit impairment losses of the company in the first half of this year came from financing leases and lending businesses. Haitong Securities' financing lease business is quite distinctive in the industry. Its profit model is to control risks, ensure asset quality, and achieve interest income exceeding impairment costs. Impairment costs are separately listed in the financial statements. When combined with interest income and expenses, the profitability can be comprehensively evaluated

The specific plan for the restructuring with GuoJun shall be subject to the transaction documents further signed by both parties

- The interim performance briefing of Haitong Securities for the first half of 2024 was held on the afternoon of September 11. Chairman Zhou Jie, General Manager Li Jun, Vice General Manager and CFO Zhang Xinjun, and Board Secretary Pei Changjiang attended the event, with Zhou Jie addressing key market concerns, particularly regarding the potential absorption merger with Guotai Junan Securities.
- Zhou Jie emphasized that the restructuring aligns with both companies' strategic development, aiming to enhance core competitiveness through resource sharing and complementary advantages, ultimately improving customer service and support for the real economy. The merger is seen as a response to national strategies and a move towards building a top-tier investment bank.
- Additionally, Zhou Jie discussed the reasons behind increasing fund and non-standard investments in the first half of the year, attributing it to proactive responses to new regulations and strategic asset allocation. The specifics of the merger with Huafu Tong and Fuguo Fund are pending further agreements and regulatory approvals, introducing an element of uncertainty to the implementation timeline.

Haitong Securities executives respond in unison to hot topics