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GF SECURITIES CO., LTD. 廣發証券股份有限公司 (A joint stock company incorporated in the People’s Republic of with limited liability) (Stock Code: 1776)

ANNOUNCEMENT ON RECEIVING GOVERNMENT SUBSIDIES

I. BASIC INFORMATION ON THE GOVERNMENT SUBSIDIES RECEIVED

In order to provide incentive to GF Securities Co., Ltd. (the “Company”, including the wholly-owned and holding subsidiaries of the Company) for its business contribution and support for regional development, the Company has received a total of RMB756.3366 million from various government subsidies since 2019. Such amount has contributed RMB520.6399 million for the net profit attributable to owners of the Company, representing more than 10% of the audited net profit attributable to owners of the Company from the last financial year. The various government subsidies received by the Company are listed as follows:

Amount of Government Reasons for Receiving Approval Number from Name of the Company Subsidies Government the Government (RMB in ten Subsidies thousands) GF Securities Co., Ltd. 47,618.21 Headquarters Business Notice on Issuing of the (廣發証券股份有限公司) Contribution Award, Measures for Promotion of Local Government the Headquarters Economic Incentive Funds for Development in Local Branches, etc. Development Zone, Huangpu District, Guangzhou (Sui Kai Guan Ban [2017] No. 6), etc. GF Fund Management Co., Ltd. 12,304.00 Incentive Funds Notice on Issuing of the Measures (廣發基金管理有限公司) for Headquarters for Promotion of Headquarters Corporate Economic Development in Development New District (Zhu Heng Xin Ban [2014] No. 33) GF Securities Asset 12,222.00 Incentive Funds Notice on Issuing of the Measures Management for Headquarters for Promotion of Headquarters () Co., Ltd. Corporate Economic Development in （廣發証券資產管理（廣東） Development Hengqin New District (Zhu 有限公司） Heng Xin Ban [2014] No. 33)

1 Amount of Government Reasons for Receiving Approval Number from Name of the Company Subsidies Government the Government (RMB in ten Subsidies thousands) GF Futures Co., Ltd. 1,889.36 Business Contribution Notice on Issuing of the Measures (廣發期貨有限公司) Award, for Promotion of Headquarters Financial Economic Development in Industry Support Guangzhou Development Zone, Special Fund, Huangpu District, Guangzhou Financial Industry (Sui Kai Guan Ban [2017] Development Fund No. 6), Notice on Promotion of Certain Policies and Measures for the Construction of Dalian Regional Financial Center (Da Zheng Ban Fa [2018] No. 130), Notice on Issuing of the Measures for Supporting Financial Industry Development in (Zheng Dong Wen [2017] No. 63) GF Hexin Industry Investment 554.00 Incentive Funds for Notice on Issuing of the Measures Management Co., Ltd. Promoting the for Further Promotion of (廣發合信產業投資管理 Development of Private Equity Investment 有限公司) Private Equity Industry Development in Industry Hengqin New District (Zhu Heng Xin Ban [2019] No. 1) Guangfa Financial Leasing 385.09 Financial Service Notice on Issuing of the (Guangdong) Co., Ltd. Industry Business Implementation Rules of (廣發融資租賃（廣東） Contribution Promotion of Financial Service 有限公司) Award, Subsidies Industry Supporting Measures for Financing Lease in Guangzhou Nansha New Projects, etc. District (Pilot Free Trade Zone) (Revised in July 2018)(Sui Nan Kai Jin Rong Fa [2018] No. 5), Notice on the Application for the Supporting Projects regarding the Development of Financial Leasing Industry of Special Funds for Business Development in 2019 (Sui Shang Wu Te Shang Han [2018] No. 97)

2 Amount of Government Reasons for Receiving Approval Number from Name of the Company Subsidies Government the Government (RMB in ten Subsidies thousands) Qianheng Investment 337.00 Incentive Funds Notice on Issuing of the Measures Management Co., Ltd. for Headquarters for Promotion of Headquarters (珠海乾亨投資管理 Corporate Economic Development in 有限公司) Development Hengqin New District (Zhu Heng Xin Ban [2014] No. 33) Ruiyuan Capital Asset 203.00 Incentive Funds Notice on Issuing of the Measures Management Co., Ltd. for Headquarters for Promotion of Headquarters (瑞元資本管理有限公司) Corporate Economic Development in Development Hengqin New District (Zhu Heng Xin Ban [2014] No. 33) GF Xinde Healthcare Capital 121.00 Incentive Funds Notice on Issuing of the Measures Management Co., Ltd. for Headquarters for Promotion of Headquarters (廣發信德醫療資本管理 Corporate Economic Development in 有限公司) Development Hengqin New District (Zhu Heng Xin Ban [2014] No. 33)

II. TYPES OF GOVERNMENT SUBSIDIES AND ITS IMPACT ON LISTED COMPANIES

1. TYPES OF GOVERNMENT SUBSIDIES

According to the provisions of the Accounting Standards for Business Enterprises No. 16 – Governmental Grants, government grants related to assets are those obtained for forming long-term assets by purchase, construction or acquisitions in other ways; Subsidies related to income are government grants other than those related to assets.

The above-mentioned government subsidies received are all government grants related to income.

2. CONFIRMATION AND MEASUREMENT ON SUBSIDIES

According to the provisions of the Accounting Standards for Business Enterprises No. 16 – Governmental Grants, the above-mentioned government subsidies are government grants related to daily operation and are recognised as other income for the current period.

3. IMPACT ON LISTED COMPANIES

The above-mentioned government subsidies received has contributed an increase of RMB520.6399 million to the net profit attributable to owners of the Company for the year 2019. The above figures has not been audited. The specific accounting treatment and its impact on the relevant financial information of the Company will be subject to the audit results to be confirmed by its accountants after conducting the annual audit. Investors are hereby reminded of investment risks.

3 III. DOCUMENTS AVAILABLE FOR INSPECTION

1. Notice on Issuing of the Measures for Promotion of the Headquarters Economic Development in Guangzhou Development Zone, Huangpu District, Guangzhou (Sui Kai Guan Ban [2017] No. 6);

2. Notice on Issuing of the Measures for Promotion of Headquarters Economic Development in Hengqin New District (Zhu Heng Xin Ban [2014] No. 33);

3. Notice on Issuing of the Implementation Rules of Promotion of Financial Service Industry Supporting Measures in Guangzhou Nansha New District (Pilot Free Trade Zone) (Revised in July 2018)(Sui Nan Kai Jin Rong Fa [2018] No. 5);

4. Notice on Promotion of Certain Policies and Measures for the Construction of Dalian Regional Financial Center (Da Zheng Ban Fa [2018] No. 130);

5. Notice on Issuing of the Measures for Supporting Financial Industry Development in Zhengdong New Area (Zheng Dong Wen [2017] No. 63);

6. Notice on the Application for the Supporting Projects regarding the Development of Financial Leasing Industry of Special Funds for Business Development in 2019 (Sui Shang Wu Te Shang Han [2018] No. 97);

7. Notice on Issuing of the Measures for Further Promotion of Private Equity Investment Industry Development in Hengqin New District (Zhu Heng Xin Ban [2019] No. 1);

8. Proof of bank slips.

By order of the Board of Directors GF Securities Co., Ltd. Sun Shuming Chairman

Guangzhou, the PRC December 17, 2019

As at the date of this announcement, the Board of the Company comprises Mr. Sun Shuming, Mr. Lin Zhihai, Mr. Qin Li and Ms. Sun Xiaoyan as executive Directors; Mr. Shang Shuzhi, Mr. Li Xiulin and Ms. Liu Xuetao as non-executive Directors; and Mr. Yang Xiong, Mr. Tang Xin, Mr. Chan Kalok and Mr. Fan Lifu as Independent Non-executive Directors.

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