GTJA executives: We are actively promoting the merger transaction with Haitong Securities with relevant parties

On November 18th, Guotai Junan Securities held a performance briefing for the third quarter of 2024. Chairman Zhu Jian, Vice Chairman and President Li Junjie, Vice President, Chief Financial Officer, Chief Risk Officer, and Board Secretary Nie Xiaogang, Independent Directors Ding Wei, Li Renjie, Bai Wei, Wang Guogang, Yan Zhixiong, and Pu Yonghao attended the meeting. At the meeting, regarding the merger and restructuring progress that investors are most concerned about, Chairman Zhu Jian stated, since the disclosure of the transaction plan, Guotai Junan and relevant parties have been actively promoting the related work of this transaction. Actively Promoting This Restructuring Regarding the merger and restructuring progress with Haitong Securities, Chairman Zhu Jian stated that Guotai Junan held the 28th interim meeting of the sixth board of directors on October 9, 2024, and reviewed and approved the proposal on the "Share Swap Absorption Merger of Haitong Securities Co., Ltd. by Guotai Junan Securities Co., Ltd. and the Related Fundraising and Related Transactions Plan" and other proposals related to this transaction. Since the disclosure of this transaction plan, Guotai Junan and relevant parties have been actively promoting the related work of this transaction. The company will strictly follow the relevant laws and regulations to fulfill subsequent procedures and information disclosure obligations. Fair Value Changes "Boost" Performance Regarding the main reasons for the significant growth in the company's performance in the first three quarters, Vice Chairman and President Li Junjie stated that in the first three quarters of 2024, the company achieved operating income of 29.0 billion yuan, a year-on-year increase of 7.3%; net profit attributable to shareholders was 9.52 billion yuan, a year-on-year increase of 10.4%. In the third quarter, the company achieved operating income of 11.93 billion yuan, a year-on-year increase of 37.2%; net profit attributable to shareholders was 4.51 billion yuan, a year-on-year increase of 56.2%. The company's performance growth is mainly due to the year-on-year increase in fair value change gains. Chairman Zhu Jian also stated that since 2024, the company has focused on key tasks such as "improving business competitiveness, accelerating comprehensive digitalization, and enhancing management efficiency," striving to consolidate and enhance its core competitive advantages, with performance maintaining steady growth in the first three quarters. He also mentioned that the company will accelerate its progress towards becoming an investment bank with international competitiveness and market leadership. Multiple Measures to Enhance Investor Returns Regarding the company's dividend policy arrangements, Chairman Zhu Jian stated that the company has always attached great importance to investor returns, and is committed to enhancing the company's long-term investment value by building its intrinsic value creation capability, and returning to investors through continuous high cash dividends. Zhu Jian stated that Guotai Junan has maintained a high dividend payout ratio since its listing, with payout ratios of 40.34%, 41.01%, and 38.00% from 2021 to 2023, respectively. In October 2024, the company completed its interim dividend distribution, allocating a cash dividend of 1.5 yuan (including tax) for every 10 shares, with the total cash dividend distribution amount accounting for 26.63% of the net profit attributable to shareholders in the first half of 2024 He also stated that the company will continue to implement the regulatory authorities' requirements for promoting listed companies to enhance their investment value. Based on continuously improving intrinsic value creation capabilities and consolidating core competitiveness, the company will study and consider further enriching value operation and realization methods, taking multiple measures such as regular dividends and strengthening investor relations management to actively enhance investor returns