Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Holly Futures (a joint stock company incorporated in the People’ s Republic of China with limited liability under the Chinese corporate name弘業期貨股份有限公司and carrying on business in Hong Kong as Holly Futures) (the “Company”) (Stock Code: 3678) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 The board of directors (the “Board”) of the Company hereby announces the audited annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2020. This announcement, containing the full text of the 2020 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcements of annual results. The audit committee of the Company, together with the management of the Company have reviewed the accounting principles and policies adopted by the Group and the consolidated financial statement for the year ended 31 December 2020. KPMG Huazhen LLP, the external auditor, has reviewed and agreed with the accounting principles and policies adopted by the Group and the consolidated financial statement for the year ended 31 December 2020. A printed version of 2020 Annual Report of the Company will be dispatched to shareholders of the Company and will be available for viewing on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company (www.ftol.com.cn) before or by the end of April 2021. By order of the Board Mr. Zhou Yong Chairman Nanjing, China 26 March 2021 As at the date of this announcement, the Board of the Company consists of Mr. Zhou Yong and Ms. Zhou Jianqiu as executive directors; Mr. Xue Binghai, Mr. Jiang Lin and Mr. Shan Bing as nonexecutive directors; and Mr. Wang Yuetang, Mr. Lam Kai Yeung and Mr. Huang Dechun as independent non- executive directors. Contents Holly Futures Co., Ltd. 1 Annual Report 2020 Contents 2 I Important 3 II Chairman’s Statement 4 III Definitions 10 IV Company Profile 22 V Financial Summary 25 VI Management Discussion and Analysis 76 VII Report of the Board 86 VIII Other Material Matters 95 IX Changes in Share and Substantial Shareholders 98 X Directors, Supervisors, Senior Management and Staff 115 XI Corporate Governance Report 142 XII Report of Supervisory Committee 145 XIII Financial Report 2 Holly Futures Co., Ltd. I Important Annual Report 2020 Important The Board, the Supervisory Committee, Directors, Supervisors and the senior management of the Company warrant the truthfulness, accuracy and completeness of the annual report, in which there is no false representation, misleading statement or material omission and for which they will assume joint and several liabilities. This report was considered and approved at the twenty-second meeting of the third session of the Board and the tenth meeting of the third session of the Supervisory Committee. All Directors and Supervisors were present at the respective meetings. No Directors, Supervisors or the senior management declared that they could not guarantee nor had any objection to the truthfulness, accuracy and completeness of this report. The annual financial report for the year ended 31 December 2020 prepared by the Company in accordance with PRC Accounting Standard for Business Enterprises was audited by KPMG Huazhen LLP (畢馬威華振會計師事務所（特殊普 通合夥）), and an auditor’s report without reservation opinions was issued by them. All amounts set out in this report are expressed in Renminbi (RMB) unless otherwise indicated. The Company’s Chairman Mr. Zhou Yong, general manager Ms. Zhou Jianqiu and supervisor of finance Ms. Chen Rongping declare that they warrant the truthfulness, accuracy and completeness of the financial report contained in this annual report. Forward-looking statements including future plan and development strategy involved in this report do not constitute the Company’s substantive commitment to investors. Investors should be aware of investment risks. II Chairman’s Statement Holly Futures Co., Ltd. 3 Annual Report 2020 Chairman’s Statement The year of 2020 was an extraordinary year, during which “pandemic shock” and “anti-pandemic policies” dominated the performance of global macro-economy and financial market, eclipsing the influence of American Presidential Election and the Sino-US political game. The impact of the pandemic on the global economy was a once-in-a-century event, having dealt a heavy blow to the world economy, which can be evidenced by the macroeconomic indicators of each country. Macroeconomic policies were eased to an unprecedented degree to hedge against the impact of the pandemic. In particular, the global central banks, led by the Federal Reserve, have implemented unprecedented expansionary monetary policies, coupled with the huge fiscal stimulus of governments around the world represented by the US government, the macroeconomic indicators of each country have experienced a V-shaped rebound one after another. Under such extreme circumstances, the global financial market oscillated violently, and the market witnessed such history-making financial events as negative oil prices and several times of circuit breakers triggered on the American Stock Exchange in a short time. In general, China’s economy has made extraordinary achievements in this extremely extraordinary year, which won the approval of our people and worldwide attention, and will be remembered in history. These achievements were made in the midst of COVID-19 pandemic raging through the world, the world economy experiencing a severe recession and the external environment becoming more complicated and severe. China’s anti-epidemic policy was unique, and it has done a “job” that no other government could copy. Amid raging global pandemic, China’s economy outshone others owing to the performance of epidemic prevention and control that would be remembered in history. China took the lead in conducting a full work and production resumption, becoming the only country among major economies to achieve positive annual growth. All these achievements were never easy to be made. The Renminbi exchange rate has been soaring since May when China resumed production, which was a “vote of confidence” cast by the market on the economy. In 2020, facing a sudden coronavirus epidemic and complicated international situation, the officers and employees of the Company, under the scientific decisions and strong leadership of the Party Committee and the Board and guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implemented various decisions and plans. With the objective of achieving “dual victories” in the respect of epidemic prevention and control and operation and production, the Company put emphasis on the basic direction of high-quality growth and insisted on the general principle of seeking progress in stability and achieving stable quality to advance the implementation of key work in the whole year by turning crises into opportunities and seizing the momentum. The Company adhered to the innovation-driven strategy to expedite its development. The operating income and turnover from brokerage achieved by the Company increased by 141.98% and 88.43% year-on-year respectively; the average daily customer equity increased 47.40% year-on-year; the closing customer equity increased 61.22% year-on-year. The Company passed the re-evaluation of “National Civilized Unit” and were awarded more than 30 honors, such as the “China’s Best Futures Companies”, “Top Ten Enterprises for Poverty Alleviation”, “Best Targeted Poverty Alleviation and Public Welfare Prize”, “JunDing Prize for China’s Outstanding Poverty Alleviation Companies” and “JunDing Prize for Anti-Epidemic Pioneer Futures Companies”. The year 2020 was undoubtedly the most difficult year during which the Company encountered more difficulties than expected and met greater challenges than anticipated, but we as the members of the Holly Futures family carried forward our spirit of being “not afraid of hardships, indomitable and courageous”, and thus better results were achieved by actively grasping the market opportunities, giving fully play to the Company’s brand and platform advantages. During this extremely difficulty year, we won a victory in fighting against the COVID-19 pandemic and achieved the perfect closing of “13th Five-Year Plan”. In this definitely uneasy year, we have done our utmost to achieve “three major breakthroughs”, with the “unique advantages” of prioritizing Party building more prominent and the cadres “taking responsibility” more distinct, and the “ecological environment” for cadres’ entrepreneurship becoming better. In this extremely extraordinary year, we achieved “four improvements” against the trend, with new improvements in major economic indicators, quality and efficiency of business development, ability to serve the real economy, and comprehensive influence in the industry. We have accumulated a good foundation in promoting high-quality development, effective practices in dealing with risks and challenges, and successful exploration experiences in innovation and reform. These