Orient Securities Co., Ltd. 2025 Annual Report Summary

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Company Code: 600958, Company Short Name: Oriental Securities

First Section: Important Notices

1、This annual report summary is drawn from the full annual report. To fully understand the Company’s operating results, financial condition, and future development plans, investors should carefully read the full annual report on the websites www.sse.com.cn (Shanghai Stock Exchange) and www.hkexnews.hk (Hong Kong Stock Exchange).

2、The board of directors of the Company and directors and senior management guarantee that the contents of the annual report are true, accurate, and complete. There are no false records, misleading statements, or major omissions, and they shall bear individual and joint legal liabilities.

3、All directors of the Company attend the board meeting.

4、KPMG Huazhen Accounting Firm (Special General Partnership) has issued an audit report with a standard unqualified opinion for the Company.

5、Profit distribution proposal for this reporting period adopted by the board of directors, or proposal for conversion of capital reserve into share capital

The Company’s 2025 annual profit distribution proposal is: based on the Company’s total share capital as recorded on the shareholding registration date for this dividend and distribution, cash dividends of RMB 2.00 per 10 shares (including tax) will be distributed to A-share shareholders and H-share shareholders registered on the shareholding registration date for this dividend and distribution.

Pursuant to relevant regulations such as the Shanghai Stock Exchange Listed Companies Self-Regulatory Guideline No. 7—repurchase of shares, the Company’s A-share shares held in the Company’s dedicated securities repurchase account do not participate in dividend distribution. Based on the Company’s total share capital of 8,496,645,292 shares as of December 31, 2025, after deducting the 61,546,481 shares in the repurchase account as of the date of report disclosure, the Company’s total proposed cash dividend amount is calculated as RMB 1.687 billion in aggregate, accounting for 29.95% of the net profit attributable to the owners of the parent company for 2025 on a consolidated basis. The Company’s 2025 interim dividend has already distributed cash dividends of RMB 1.012 billion; the cumulative dividend for 2025年度 totals RMB 2.699 billion, accounting for 47.91% of the net profit attributable to the owners of the parent company for 2025 on a consolidated basis.

The Company’s 2025 annual profit distribution proposal has been deliberated and approved by the Company’s 6th session of the board of directors, 14th meeting. It still needs to be considered and approved by the Company’s shareholders’ meeting.

As of the end of the reporting period, the parent company has relevant circumstances of un-recovered losses, and the impact of such circumstances on matters such as the Company’s dividend distribution

□ Applicable √ Not applicable

Second Section: Basic Information of the Company

1、Company Profile

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2、Overview of the Company’s Main Businesses During the Reporting Period

The Company is a comprehensive securities firm established with approval from the China Securities Regulatory Commission, providing full-spectrum, one-stop financial services including securities, futures, asset management, investment banking, investment consulting, and securities research. The Company adheres to serving national strategies and the development of the real economy, and focuses on doing well the “five essays”—technology finance, green finance, inclusive finance, pension finance, and digital finance. Centered on customers, it deepens reforms and transformation, building three major business systems: wealth management, investment banking, and large institutions. It also builds four major business segments: wealth and asset management, investment banking and alternative investment, institutional and sales trading, and international and other businesses, forming differentiated competitive advantages in asset management, wealth management, futures businesses, proprietary investment, and other lines. The Company’s main profit models are obtaining fee and commission income and interest income by providing financial products or services to customers, and obtaining investment returns through securities or equity investments, among others.

The specific business segment structure is as follows:

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The wealth and asset management segment mainly provides services to customers including securities brokerage, financial products, investment advisory, margin financing and securities lending, asset management, and futures businesses.

The investment banking and alternative investment segment mainly includes services to customers such as stock underwriting and sponsorship, bond underwriting, financial advisory, enterprise diversified solution services, and alternative investment businesses.

The institutional and sales trading segment mainly consists of proprietary investment, customer-need-based businesses, market making businesses, research services, and custody businesses. Among them, proprietary investment includes equity-type, fixed-income-type, bulk commodity, and foreign exchange investment trading; customer-need-based businesses include over-the-counter derivatives and FICC agency businesses.

The international and other business segments mainly include international business and other businesses. Among them, international business relies on overseas platforms such as Oriental Financial Holdings, Orient Securities International, and their subsidiaries, and the Orient Securities Futures Singapore subsidiary. Through these platforms, the Company conducts businesses including securities and futures brokerage, asset management, investment banking, and guaranteed financial services.

3、The Company’s Key Accounting Data and Financial Indicators

3.1 Key Accounting Data and Financial Indicators for the Past 3 Years

Unit: RMB

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In July 2025, the Accounting Division of the Ministry of Finance issued implementation Q&A on accounting treatment related to standardized warrants trading. Based on the content of the Q&A, the accounting treatment for the Company’s standardized warrants purchase and sale contracts was adjusted accordingly, and simultaneously information for comparable periods in the financial statements was adjusted.

3.2 Key Accounting Data by Quarter During the Reporting Period

Unit: RMB

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Explanation of Differences Between Quarterly Data and Disclosed Periodic Report Data

√ Applicable □ Not applicable

In the Company’s《2025 First Quarterly Report》, the operating revenue disclosed was RMB 5,381,713,789.37. In July 2025, the Accounting Division of the Ministry of Finance issued implementation Q&A on accounting treatment related to standardized warrants trading. Based on the content of the Q&A, the Company adjusted the accounting treatment for the standardized warrants purchase and sale contracts it held accordingly, and simultaneously adjusted the amounts of relevant revenue recognized. After the adjustment, the Company’s operating revenue for the first quarter of 2025 was RMB 3,884,727,756.24. Except for the above adjustments, no major changes occurred in the Company’s other key financial data for the first quarter of 2025.

4、Shareholder Information

4.1 Total number of ordinary shareholders as of the end of the reporting period and the end of the month preceding the annual report disclosure, total number of preferred shareholders with voting rights restored, total number of shareholders holding special voting rights, and the top 10 shareholders

Unit: Shares

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4.2 A box diagram of the ownership and control relationship between the Company and its controlling shareholder

□ Applicable √ Not applicable

4.3 A box diagram of the ownership and control relationship between the Company and its actual controller

□ Applicable √ Not applicable

4.4 Total number of the Company’s preferred shareholders as of the end of the reporting period and the information of the top 10 shareholders

□ Applicable √ Not applicable

5、Information on the Company’s Corporate Bonds

√ Applicable □ Not applicable

5.1 Details of all corporate bonds outstanding as of the date when the annual report was approved for issuance

Unit: RMB 100 million

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5.2 Interest payment and principal settlement for the bonds during the reporting period

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5.3 Adjustments to the credit rating results for the Company or its bonds made by credit rating agencies during the reporting period

□ Applicable √ Not applicable

5.4 Key Accounting Data and Financial Indicators for the Company for the Past 2 Years

√ Applicable □ Not applicable

Unit: RMB

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Note: Asset-liability ratio = (Total liabilities − Accounts payable to brokerage business customers − Accounts payable to underwriting business customers) / (Total assets − Accounts payable to brokerage business customers − Accounts payable to underwriting business customers)

Third Section: Major Matters

I. The Company shall, based on the principle of materiality, disclose major changes in the Company’s operating situation during the reporting period, and matters that occurred during the reporting period that had a major impact on the Company’s operating situation and are expected to have a major impact in the future.

In 2025, the global economy moved forward amid turmoil and interwoven structural reshaping. Recovery momentum remained insufficient, and geopolitical conflicts kept flaring up. Overall, the economy showed the operating characteristics of “weak recovery, high volatility, and multiple challenges.” Faced with an unfavorable international environment, the CPC Central Committee and the State Council implemented precise measures, and the domestic economy’s positive rebound trend continued to be firmly consolidated. China’s capital market demonstrated strong resilience. The SSE Composite Index cumulatively rose 18.41%, marking the largest annual increase in six years. Trading activity in the market improved significantly. Annual trading value for the first time exceeded RMB 400 trillion, setting a historical record high. The securities industry entered a period of deep transformation, with mergers and acquisitions and integrations moving forward in depth. Leading brokerages joined forces to reshape the competitive landscape. AI technology penetrated comprehensively, driving innovations in business development and an efficiency revolution. New rules were introduced for categorized evaluation, guiding the industry to shift from scale expansion to quality improvement and differentiated development. The main theme of high-quality development in the industry became increasingly clear.

At this key stage where market opportunities and industry transformation intertwined, the Company remained true to its original aspiration of “serving the country through finance and finance for the people,” firmly grasping an important window of market opportunities and differentiated and specialized development. It continued to carry out in-depth education and learning on implementing the Central Committee’s eight-point requirements, and pushed forward comprehensive and strict Party governance in depth. Guided by the new three-year strategic plan, it implemented the spirit of the Company’s early-year work meeting, upheld benchmarking against advanced peers and aiming for excellence. It resolved development challenges through reform, enhanced development drivers through transformation, and achieved a favorable situation with major indicators surging, breakthroughs at multiple points in core businesses, a continuously strengthened high-quality development framework, and a significant increase in operating performance. This laid a solid foundation for completing the Company’s strategic planning.

(I) Wealth and Asset Management

1、Wealth Management

The Company mainly carries out wealth management business through the Wealth Management Committee and its subordinate first-tier departments and branches. During the reporting period, the Wealth Management Committee, based on the Company’s new round of strategic planning, formulated the《Oriental Securities Wealth Management Committee “Three Strengths” Mechanism Construction Action Plan》. The plan aims to build a “three strengths” coordinated mechanism featuring headquarters-driven force, policy penetration, and branch carrying capacity. It deeply integrates frontier financial technology techniques with the advantages of traditional brokerage business. It is anchored on the main line of “buyer-side investment advisory,”推动东方证券财富管理业务从“产品销售导向”向“客户价值创造导向”全面转型，奋力建设以专业投顾能力为根基，以数字化运营为支撑，以组织效能优化为保障的财富管理业务体系，持续提升客户服务体验与综合金融服务能力。

(1) Securities Brokerage Business

During the reporting period, the stock market performed remarkably. The total market capitalization of A shares surpassed the threshold of one hundred trillion, investors’ confidence was effectively restored, and trading activity remained at a high level. Daily average trading value of A shares reached RMB 1.73 trillion, a year-on-year increase of 62.69%. The issuance of public funds also rebounded in parallel. Among them, passive index funds became the main force for capital allocation, with their shares continuing to grow, and the “making money” effect in the equity market was restored.

In terms of customer development. The Wealth Management Committee, guided by serving the country’s regional development strategy, established regional branch offices and functional internet branch offices, and systematically advanced the reform of the three-tier organizational structure of “headquarters-branch office-sales departments,” coordinating business resources and business expansion activities across regions. It built the core operational capabilities of digitization and intelligence, and optimized the classified, tiered customer service system. As of the end of the reporting period, the Company had 170 securities sub-entities, covering 31 provinces, autonomous regions, and municipalities directly under the central government. In 2025, starting from the performance management system, it focused on three core indicators—“customers, trading, and products,” unified the operating approach of sub-entities, proactively expanded offline and online customer development channels, and promoted a reasonable growth in customer size quantity and a steady improvement in quality. As of the end of the reporting period, the total number of customer funds accounts was 3.2901 million, up 12.68% from the end of last year; the total custody assets amounted to RMB 1.08 trillion, up 22.67% from the end of last year. During the reporting period, the Company added 390,500 new customers; new account openings introduced assets of RMB 741 billion, representing year-on-year increases of 44.62% and 40.92%, respectively.

In terms of transaction services. During the reporting period, the Company significantly improved market response speed and trading efficiency by providing services such as trading support, market information, and strategy backtesting, creating an ultra-fast trading ecosystem with OST at its core. It actively introduced algorithmic strategies and established a winner-strategy trading brand. The new-generation core business system was successfully switched and went live, comprehensively improving business processing efficiency and customer service experience. It built the “Oriental Securities customer pre-trade risk control system” to enhance its compliance-oriented trading service capability. It also prepared and supported overseas client and domestic transaction execution services, fully supporting the introduction of new businesses. The Company actively strengthened efforts to bring in quant private fund managers and cross-border trading clients, and built a trading business ecosystem centered on licensed institutional investing, ETF trading, strategy trading, and quantitative services for private clients. During the reporting period, the Company’s branch entities’ market share in stock-and-fund (including equity funds) trading was 1.34%, up 0.34 percentage points year-on-year.

In terms of product sales. The Company continuously optimized the public fund product lineup and built a “open-ended, full-spectrum” selection shelf of public funds. It launched products covering three categories: low-volatility, mid-volatility, and high-volatility, meeting the investment needs of customers with different risk preferences. In 2025, the public fund product shelf added more than 2,600 new products. In addition, through key performance evaluations focused on retention scale, it guided sub-entities to emphasize customers’ holding experience. In terms of equity products, the proportion of closed-end products with a holding period in custody was high, forming a distinctive feature in the market. Furthermore, the Company deployed clearing-and-settlement products, further expanding in-depth cooperation with strategic cooperation fund managers. During the reporting period, sales amount of non-money-market products was RMB 29.521 billion, up 40.87% year-on-year; as of the end of the reporting period, the amount of non-money-market product holdings was RMB 70.096 billion, up 25.57% from the beginning of the year.

The following table sets out the types and amounts of financial products sold on behalf of the Group during the period shown (including over-the-counter (OTC) products):

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For private wealth. During the reporting period, the Company accelerated the build-out of its private fund product line, with meeting customer-need as the premise. It established a submission mechanism led primarily by first-line needs of branch offices, removed information barriers between capital-side demands and asset-side supply, stimulated the vitality at the business marketing end, and formed a positive feedback loop of “demand-driven supply and supply-enabled sales.” At the same time, it advanced the construction of a whitelist of private fund managers. By establishing systematic and standardized manager screening and tracking mechanisms, it ensured the delivery of high-quality strategies to sub-entities, enabling first-line sales and ultimately meeting the diversified, high-quality allocation needs of high-net-worth customers. As of the end of the reporting period, the Company had 21,835 retail high-net-worth customers, up 38.35% from the beginning of the year. Total asset size was RMB 297.871 billion, up 38.08% from the beginning of the year.

For digital finance. The Company insists on being customer-centered, driven by technology enabling and investment advisory leading, and has built a one-stop digital wealth management platform for customers. During the reporting period, the Company released the Oriental Winner App 6.0 version. It redesigned and upgraded end-to-end across the full customer journey—from pre-investment analysis, to mid-investment decisions, to post-investment reviews—helping customers improve both investment efficiency and experience. It launched featured services such as an investment advisory专区, Winner 50 fund strategy, high-end wealth management, Winner T0 strategy, and investment advisory winner account, enabling customers to seize market opportunities. It built a high-quality data foundation for wealth management, enriched the 4K tag system, effectively supporting precise, strategy-based, and automated operations for segmented customer groups, and improving customer activity.

In the future, the Company will focus on playing the role of social wealth managers, concentrate on customer group operations, deepen the construction of the “three strengths” mechanism, and build a digital wealth management ecosystem co-built, co-governed, and shared around four transformation elements: customers, products, teams, and channels. It will work to promote transformation and upgrading of sub-entities, actively implement an integrated online and offline marketing approach. It will improve customer group operations for quality and incremental growth by strengthening investment research and advisory services and pushing financial technology transformation to construct core barriers, thereby expanding the asset size of customers. It will build a diversified transaction services system, further develop the ultra-fast trading brand, and build a quant ecosystem. It will adhere to the “ETF + investment advisory” strategy and deeply advance the building of the ETF ecosystem.

(2) Investment Advisory (投顾) Business

In 2025, the scale of fund investment advisory business maintained steady growth. Investors’ behavior became more rational, and the overall investment experience improved significantly. At the same time, the stock market performance diverged, further driving demand for securities investment advisory services, and investment advisory institutions continued to optimize their professional capability in “investing” and their service experience in “advising.” During the reporting period, the Company established an investment advisory專班, and, under the premise of prudent compliance, advanced a new dual-wheel-driven model of “fund investment advisory + products” and “securities investment advisory + trading.”

For fund investment advisory. During the reporting period, the Company adhered to a buyer-side investment advisory service stance centered on the customer, actively laying out fund investment advisory solutions in a low-interest-rate environment to support the transformation of the Company’s wealth management business. First, it continuously enriched investment advisory portfolio strategies, with strong portfolio performance and returns. In 2025, 16 newly launched fund investment advisory portfolio strategies went live, bringing the cumulative number of portfolios to 43. The portfolio strategies are diverse and well-positioned, effectively meeting different investors’ needs for multiple categories, multiple scenarios, and multiple objectives. Moreover, all strategy portfolios achieved positive returns within the year. Second, the fund investment advisory service model continued to iterate. In 2025, the Company simultaneously advanced standardized portfolio and customized service offerings for its fund investment advisory business. It provided convenient, efficient financial services to a broader group through standardized fund investment advisory portfolios, while customized services met specific investment needs of corporate and institutional clients. Customer service satisfaction continued to improve. Third, it launched advisory-type fund investment advisory services. In 2025, the Company innovated its service model and introduced a service solution for advisory-type fund investment advisory business, enriching the service content of fund investment advisory business from strategy dimensions, service flexibility, and customer participation. As of the end of the reporting period, the Company’s fund investment advisory business had an outstanding holding scale of RMB 17.195 billion, with a re-investment rate of 76.28%, ranking among the leading companies in the industry.

For securities investment advisory. The Company highly values the specialized and systematic development of investment advisory talent and cooperated with its securities research institute to carry out the “selection and growth action for securities investment advisory.” It established a systematic mechanism for the selection and cultivation of investment advisory professionals, laying a solid foundation for standardized operations and large-scale expansion of the business. In 2025, the Company completed the online launch of the securities investment advisory platform system. Through the standardized platform, it realized end-to-end online operations for product production, review, signing, and service. As of the end of the reporting period, 30 of the Company’s gold investment advisors had joined the Oriental Winner App. A total of 39 standardized investment advisory products went live, enabling effective extension of investment advisory services into trading scenarios.

In the future, the Company will continue to adhere to the “buyer-side position” and “advisory service,” promote comprehensive upgrades of investment advisory business in three areas—organizational structure, talent development, and system optimization—continuously strengthen investment research capabilities and service model innovation, and provide customers with diversified choices, helping investors achieve the preservation and appreciation of assets. At the same time, the Company will strengthen applications combined with artificial intelligence and continuously improve service efficiency and customer service experience.

(3) Credit Trading Business

During the reporting period, the increase in market trading activity drove the continuing expansion of the two financing and securities lending (margin finance and securities lending) business scale. Balances kept rising and reached a new high in ten years. As of the end of the reporting period, the margin finance and securities lending balance for the entire market was RMB 2,540.682 billion, up 36.26% from the end of the prior year. Among them, the margin finance balance was RMB 2,524.156 billion, up 36.14% from the end of the prior year; the securities lending balance was RMB 16.526 billion, up 58.33% from the end of the prior year.

For the margin finance and securities lending business. The Company adheres to the principles of “three excellences and three advantages.” By adopting the business philosophy of “prospecting customers in advance, providing services in advance, and supporting clients in advance,” it deepened services for high-net-worth customers, improved the margin pricing mechanism, proactively responded to the needs of branches, and achieved synchronized growth in business scale and customer resources. It continued to iterate and upgrade the Hang Seng new-generation system and went live with the credit condition orders function, building an intelligent credit data system to empower business management and improve business efficiency. It built a dynamic risk prevention and control mechanism and improved the level of risk intelligent management, empowering differentiated business needs and providing strong support for the stable operation of the business and the safety of customers’ assets. As of the end of the reporting period, the Company’s margin finance and securities lending balance was RMB 37.839 billion, up 37.79% from the end of the prior year, with a market share of 1.49% and an average maintenance guarantee ratio of 290.79%.

For securities pledge business. The Company upholds the principles of “controlling risks and reducing scale,” and pushed forward risk resolution for the securities pledge business with full effort. As of the end of the reporting period, the securities pledge business balance pending repurchase was RMB 2.469 billion, all financed with the Company’s own funds, down 14.77% from the end of the prior year, with risks further cleared out.

In the future, the Company will continue to exert efforts toward business ecosystemization, management refinement, and system intelligence. Under the premise of risk controllability, it will expand customer resources, strengthen the customer base, and promote high-quality development of the two financing and securities lending business. At the same time, it will continue to push forward risk resolution and risk asset disposal for the securities pledge business.

2、Asset Management

The Company mainly carries out broker-dealer asset management business through its wholly owned subsidiary, Orient Securities Asset Management (East Securities Asset Management). It carries out fund management business through 汇添富基金 (a joint venture enterprise with a 35.412% shareholding and the Company as its largest shareholder). It also conducts private equity investment business through its wholly owned subsidiary, Orient Securities Capital.

(1) Broker-dealer Asset Management Business

In 2025, the A-share market went through a slow bull market driven primarily by technology growth. The bond market experienced significant adjustments and continued to trade with persistent volatility. The high-quality development of the public fund industry continued to advance. A series of fundamental changes reshaped the industry ecosystem, prompting industry institutions to firmly establish a business philosophy centered on investors’ best interests. The industry is entering a new wave of compliance governance and transformation development. The “stocks-and-bonds seesaw” effect drove reallocation of household assets and institutional funds. The trend showed that capital shifted from deposits and traditional fixed-income products toward equity markets, “fixed income+,” public REITs, convertible bonds, and other diversified assets.

During the reporting period, Orient Securities Asset Management actively responded to industry changes and market competition. It adhered to the “second start-up” transformation direction, proactively integrated into the “big wealth” strategic layout of Oriental Securities, focused on investment performance, and promoted the dual-wheel drive of broker-dealer asset management and public fund businesses with products, investment research, and sales as the main line. Based on business strategic deployments, it refined and improved product layouts, promoted integration of investment research, enhanced the sales market system, improved investment performance, optimized customers’ holding experience, and drove both management scale and business revenue to achieve double growth.

During the reporting period, investment performance of Orient Securities Asset Management’s products improved to some extent. As of the end of the reporting period, over the past 10 years, the absolute return rate of equity-type funds was 121.02%, ranking 3rd in the industry (data source: Galaxy Securities Fund Research Center—Active Stock Investment Management Capability Evaluation ? long-term evaluation ranking list); over the past 7 years, the absolute return rate of fixed-income-type funds was 35.92%, ranking within the top 20% of the industry (data source: CICC Haitong Securities Research Institute—Ranking List of Fund Company Equity and Fixed-income Asset Performance). Products in the “fixed income+” category formed industry influence. Among them, high-volatility fixed income+ products led in performance; dividend and low-volatility products were the industry’s largest off-exchange dividend-related fund category, continuously delivering excess performance.

During the reporting period, multiple products of Orient Securities Asset Management achieved standout issuance results, and its ongoing marketing efforts reached a new stage, driving management scale to stabilize and rebound. 东方红核心价值 raised RMB 1.991 billion, the first batch of floating-fee-rate funds that were able to trigger the fundraising scale cap and close upon completion. 东方红盈丰 FOF raised over RMB 6.5 billion, the FOF product with the largest initial issuance scale among those launched in the past three years as of the end of the reporting period, and also the public fund with the largest issuance scale during the reporting period. 东方红裕丰回报, 东方红港股通高股息, and other products also achieved good issuance performance.

As of the end of the reporting period, Orient Securities Asset Management’s entrusted asset management scale totaled RMB 286.792 billion, up 32.43% from the end of the prior year; the number of managed products totaled 307, up nearly 20% year-on-year. Among them, public funds had a management scale of RMB 216.285 billion, up 30.16% from the end of the prior year; private asset management products had a management scale of RMB 66.597 billion, up 48.12% from the end of the prior year. The following table sets out the asset management scale by product type:

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In the future, Orient Securities Asset Management will closely seize industry transformation opportunities, further iterate its investment research and management system, deepen investment research integration, and continuously enrich product strategies. It will continue to explore differentiated development paths to build business characteristics. Guided by the common drivers of “good investing + good services + good brand,” it will strive to achieve high-quality development and become a respected asset management institution.

(2) Fund Management Business

In 2025, as capital market reforms continued to deepen, the pace of medium- and long-term funds entering the market accelerated, and the market ecosystem improved further. Under the guidance of the《Action Plan for Promoting the High-Quality Development of Public Funds》, the public fund industry comprehensively shifted toward an operating paradigm oriented to investor returns, and industry asset management scale continued to grow. According to statistics from the China Securities Investment Fund Industry Association, as of the end of December 2025, the net asset values of public funds managed by public fund management institutions amounted to RMB 37.71 trillion, up 15% from the end of the prior year.

汇添富基金 followed the requirements for 2025 as the “year of reform and advancement,” adhered to the operating philosophy of “starting from the long term in all cases” and the values of “customer first,” and steadily advanced toward the goal of building a first-class investment institution. In terms of investment research and products, it focused on building a “people-centered multi-strategy investment system,” deepened rule-based investing, and effectively ensured investment discipline and stable product styles. In terms of products, it continuously optimized the layout of active equity funds, and the first batch participated in issuing new-type floating-fee-rate funds. It deepened the index system, closely aligned with national strategy directions, and precisely invested in new quality productive forces and hard technology. The scale growth of stock index funds was nearly 70%. It established its first bond ETF under the company, 汇添富中证AAA科创债ETF. It successfully issued the country’s first medical warehousing and logistics REIT and also the country’s first “commercial-to-residential” (商改保) rental housing REIT. In terms of client service, it earnestly advanced investment advisory-style services and AI-and-digital intelligent accompaniment. It was the first in the industry to launch the “DeepSeek in cash treasure” AI intelligent service, comprehensively improving investor experience. In international business, its 汇添富沪深300ETF successfully launched in the Brazil market and became one of the first products for mutual connectivity between China and Brazil ETFs. Its Singapore subsidiary business advanced steadily. Its Hong Kong subsidiary further enriched its strategy layout, and its globalization strategy progressed steadily.

As of the end of the reporting period, 汇添富基金’s public fund scale, excluding money market funds, was over RMB 680 billion, up about 37% from the beginning of the year. During the reporting period, 汇添富基金 established a total of 54 public funds, with an aggregate issuance scale of about RMB 36.5 billion, further完善 the underlying asset map.

In the future, 汇添富基金 will anchor its goal of building a “first-class investment institution,” and strive to create long-term, stable returns for investors. It will continuously improve the underlying asset matrix covering active equity, fixed-income, and index quant products, and vigorously promote innovative breakthroughs in pension funds, REITs, and international business. By upgrading to digital intelligence, improving compliance and risk control management, and strengthening the full-scale construction of professional talent pipelines, it will achieve a leapfrog development toward a first-class investment institution.

(3) Private Equity Investment Funds

In 2025, China’s domestic capital market was shaken and stabilized amid policy support and structural transformation. Market sentiment became more rational, and the valuation system was reshaped. The primary equity investment market needs to precisely grasp industry certainty amid complex macro variables. It should explore structural opportunities amid challenges and seize the time opportunity of a new round of technological revolution and industrial transformation.

During the reporting period, Orient Securities Capital deepened its “harmony with differences” platform strategy, focusing on two core areas: technological innovation and M&A restructuring, stepping up efforts. It promoted coordinated development across the full business chain of “fundraising, investing, managing, and exiting.” On the fundraising side, it expanded the size of mother funds and supported the establishment of M&A funds. On the investment side, it focused on high-quality sectors such as semiconductors, robotics, and AI for precise layout. It strengthened post-investment management control and risk early-warning, explored multiple exit paths, and cleared out risk assets.

As of the end of the reporting period, Orient Securities Capital managed 59 funds in total, with a total management scale of RMB 18.375 billion. It added 11 new funds with新增规模 of RMB 2.980 billion. It had 135 projects under investment, with an invested amount of RMB 6.841 billion. Among them, there were 5 investee companies still listed in existence. During the reporting period, IPOs were successfully launched for 2 investee enterprises; approval was granted for 1 enterprise’s IPO application after review; and 3 enterprises had filed IPO applications and were accepted.

In the future, Orient Securities Capital will continue to uphold its初心 of discovering and realizing value, focusing on the industry directions prioritized for development during the “15th-Five-Year Plan period (2026–2030),” and continue to carry out systematic internal research and strategy calibration. It will build a business system organically integrating a “top-down” strategic guidance with “bottom-up” market validation.

3、Futures Business

The Company mainly carries out futures business through its wholly owned subsidiary, Orient Securities Futures.

In 2025, the domestic futures market achieved a significant leap in scale and a comprehensive enhancement in vitality. In terms of market scale, the total customer equity in the entire market historically surpassed the RMB 2 trillion threshold, reflecting long-term allocation confidence and deep participation of funds. Market trading volumes also increased significantly in parallel, and trading activity reached a new peak.

Orient Securities Futures adheres to a pragmatic and enterprising approach and the bottom line of compliance and risk control, achieving zero risk and zero incidents throughout the year, laying a solid safety foundation for business expansion. The Company actively advanced innovation and optimization in multiple aspects: first, it empowered business with research depth. It reinforced customer stickiness through a “finer/micro” platform integrating roadshows, customized reports, and multi-source data fusion. Second, it leveraged digitalization and agile management to improve efficiency and quality, optimizing account-opening experiences, the trading system, and promoting AI technology implementation. Third, it deepened internal and external coordination, promoting linked development between brokerage, asset management, and risk management subsidiaries, achieving good results. Fourth, it accelerated its international layout. Using the Singapore subsidiary as a springboard to expand overseas markets, it built comprehensive cross-border service capabilities. The results of this series of initiatives were remarkable, and the Company’s overall competitiveness further improved. By the end of 2025, Orient Securities Futures’ market share in proxy trading volume and customer equity size were both in the top three in the industry, maintaining a leading position.

In the future, Orient Securities Futures will continue to progress in three key directions while adhering to compliance and pragmatic operating style. First, it will deepen service capability for whole-cycle risk management, focus on industry clients, and improve the comprehensive product matrix. Second, it will strengthen the smart service capability driven by a “research + technology” dual-wheel mechanism, promoting deep integration between technology and the business. Third, it will enhance international resource integration and coordination capabilities, using overseas subsidiaries as a pivot to build a cross-border service system.

(II) Investment Banking and Alternative Investment

1、Investment Banking

The Company mainly engages in investment banking business through its investment banking management committee and its subordinate first-tier departments, as well as the fixed-income business headquarters.

(1) Equity Financing Business

In 2025, the A-share market generated new momentum as policy dividends continued to be released. The IPO regulatory policy shifted from “strict control on the number of issuances” to “increasing incremental issuances with improved quality,” and differentiated reviews became more prominent. Support for listing companies of hard technology, those specializing in niche areas (“专精特新”), and unprofitable enterprises continued to increase. The A-share primary market’s total financing scale for the full year amounted to RMB 108.2636 billion, up 273% year-on-year from last year. Equity financing showed “stable volume and increasing amount,” with steady release of normal financing demand.

According to Wind statistics, during the reporting period the Company completed 15 A-share equity financing projects, ranking 7th in the industry. Among them, there were 5 IPO projects as lead underwriter, and 10 projects for additional fundraising. The total amount as lead underwriter was RMB 11.048 billion, ranking 11th in the industry. The Company has a mission to promote high-quality development of finance, and it follows the national development strategy orientation. It is deeply engaged in industry-focused investment banking, closely aligned with the development direction of new quality productive forces, supporting the development of technology innovation enterprises, and building a brand of science and technology innovation investment banking. Centering on the energy investment banking direction, it actively improved the issuance efficiency of equity projects in the energy sector, and fulfilled the mission of serving the real economy through diversified investment banking services.

In the future, the Company will anchor itself to the national strategic orientation and follow trends in industrial development. It will leverage an integrated platform of “investment + investment banking + investment research” to co-build an industrial ecosystem, with a focus on industry investment banking businesses such as science and technology innovation investment banking and energy investment banking, to build differentiated competitive advantages and establish a distinctive Oriental industry investment banking brand. It will continuously deepen “cross-border integration” coordination and simultaneously develop cross-border investment banking service characteristics.

(2) Bond Financing Business

During the reporting period, the total issuance scale of all types of bonds in the entire market (including negotiable certificates of deposit) was RMB 8.908 trillion, up 11.54%. Monetary policy continued with an “appropriately loose” stance, and fiscal policy exerted effort early, creating a favorable policy environment for the credit bond market. Combined with intensified support for science and technology innovation bonds policies, credit bond issuance scale expanded steadily, and net financing amounts grew significantly. In terms of market institutions, the effect of leading players was evident. Leading brokerages held dominant positions in areas such as credit bonds and technology innovation bonds, while banks formed differentiated competition by leveraging advantages in underwriting rate bonds and local government bonds.

For interest rate bonds, the Company continued to rank among the industry leaders. During the reporting period, the Company’s total underwriting amount of interest rate bonds grew 70% year-on-year. Among them, as one of only two brokerage underwriting entities among the category of bookkeeping-based interest-bearing government bond Class A underwriters, the Company underwrote more than RMB 340 billion of bookkeeping-based interest-bearing government bonds, and the share of special bonds exceeded 21%. This particularly supported the implementation of the “two key initiatives” (two-heavy initiatives) and “two new initiatives” (two-new policies). The Company’s business ranking moved steadily. It ranked first among brokerages in underwriting bookkeeping-based interest-bearing government bonds, development bank bonds (国开行), and financial bonds of agricultural development banks. In addition, the Company leveraged its strengths and proactively participated in the underwriting of technology innovation bonds by policy banks, helping the China Development Bank achieve a successful first issuance of its technology innovation bonds; its underwriting volume ranked among the top brokerages, and through concrete actions it strengthened support for the funding needs of technology innovation purposes and drove down financing costs.

For credit bonds, the Company leveraged its strengths and actively participated in the underwriting and issuance of technology innovation bonds and green bonds. During the reporting period, the Company underwrote technology innovation bonds (including technology innovation notes) with a scale of RMB 30.184 billion, up 63% year-on-year. The Company underwrote a combined scale of RMB 17.259 billion for green bonds, low-carbon transition bonds, and sustainability-linked bonds, up 128% year-on-year. In addition, the Company vigorously expanded other specialized bond categories. It underwrote and issued multiple innovative products such as rural revitalization corporate bonds for municipalities (乡村振兴公司债), small and microfinance bonds (小微金融债), enterprise support corporate bonds for small and micro enterprises (中小微企业支持公司债), “three agriculture” financial bonds (三农金融债), high-growth industry bonds, “the Belt and Road” corporate bonds, and others. It supported major project construction in fields such as technology innovation, green carbon neutrality, rural revitalization, and small and micro enterprises, helping the high-quality development of the real economy. The Company adheres to stable and compliant operations and strictly controls risks, and bond projects maintained a record of zero defaults.

According to Wind statistics, the Company’s total bond underwriting scale in 2025 ranked 8th in the industry. The following table sets out detailed underwriting information of various types of bonds for which the Company served as lead underwriter:

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In the future, the Company will continue to deepen the “investment + investment banking + investment research” three-way integrated service model. On one hand, it will deeply explore customers’ diversified financing needs, build a full-chain and full-lifecycle comprehensive financial services system, and continuously improve service quality and the ability to land product innovations. On the other hand, it will focus on regional high-quality client segments, strengthen coverage of national key strategic regions, and use its bond business to build a solid base in scale. It will use ABS and REITs as new growth tracks to expand growth space and drive the steady rise of the Company’s overall business scale and core competitiveness.

(3) Financial Advisory Business

In recent years, as a series of policies supporting listed-company M&A and restructuring were gradually released—such as the new “Nine Articles of the State Council” (新“国九条”), “Eight Articles for the Science and Technology Innovation Board” (科创板八条), and “Six Articles for M&A” (并购六条)—the A-share M&A and restructuring market has become increasingly active. In 2025, the number of M&A transactions with a first disclosure of restructuring plans and drafts was over 140 and 120, respectively, far exceeding the same period last year. The M&A and restructuring market for A-share listed companies is recovering.

The Company attaches great importance to financial advisory services related to M&A restructuring. It focuses on “hard technology” asset targets with core technologies, guides listed companies to actively carry out M&A and integration along upstream and downstream industry chains, and takes multiple measures to increase business scale and improve rankings. According to Wind statistics, among approved license-type M&A restructuring projects, the number of projects passed review ranked 4th in the industry, and the project scale of passed review ranked 2nd in the industry.

For large projects, the 国泰海通 absorption merger project in which the Company served as an independent financial adviser to the absorbing party was completed within the year. The project is the largest A+H cross-market absorption merger in China’s capital market history, and also the number one M&A project among international investment banks since 2008. For science and technology innovation mergers, the Company served as an independent financial adviser and assisted the companies on the Science and Technology Innovation Board to complete the overall acquisition of水木天蓬, the ultrasound surgical equipment and consumables manufacturer. It assisted 创业板 company 罗博特科 to complete the overall acquisition of Germany’s ficonTEC, a globally leading company providing photonics and semiconductor automated packaging and testing equipment. It assisted 创业板 company 富乐德 to complete the acquisition of富乐华, an advanced manufacturing company for power semiconductor copper-clad ceramic substrates. For industrial M&As, the Company assisted 德尔股份 in acquiring assets from peers in the automotive parts industry, and assisted 纳思达 in asset integration. In addition, the Company also assisted multiple listed companies in restructuring M&A related to new quality productive forces, industrial M&A, and cross-border M&A, involving multiple industries such as components, chemicals, and finance.

In the future, the Company will focus on science and technology innovation M&A and industrial M&A, and place particular emphasis on M&A transactions with a certain transaction scale and market influence. In addition, it will actively expand into innovative business areas such as financial advisory for transfers of controlling rights of listed companies and financial advisory for bankruptcy reorganization, and thereby prioritize obtaining business opportunities for future capital operations by listed companies. It will pay attention to internationalization needs of high-quality listed company clients and, through domestic and overseas coordination, meet clients’ overseas market financing needs and global strategy layout needs.

2、Alternative Investment

The Company mainly carries out alternative investment business through its wholly owned subsidiary, Orient Securities Innovation.

In 2025, under the dual-wheel drive of policy guidance and market mechanisms, the alternative investment market placed even more emphasis on deep industry integration, refined risk management, and long-term value extraction, presenting a competitive landscape where opportunities and challenges coexist for professional institutions. In the primary equity investment market, the structure-based rebound emerged. Funds continued to concentrate on national strategy areas such as hard technology, advanced manufacturing, and green low-carbon. The investment logic shifted from pursuing single financial returns to industrial synergy and value co-creation. In the special assets investment market, there was broad space given ongoing supply-side release, and business opportunities increased significantly. At the same time, higher requirements were set for asset pricing, restructuring operation and playbook execution, and cross-cycle management capabilities of investment institutions.

Orient Securities Innovation dynamically adjusted the asset weightings with different terms, risk tiers, and target returns, aiming to enhance overall portfolio resilience and upside return potential. In the equity investment business, it continued to implement “invest early, invest small, invest long-term, invest hard technology,” contributing to national industrial upgrading and strengthening the foundation and filling supply gaps. It also leveraged the innovation and diversified advantages of the securities firm’s alternative investment subsidiary business, and further explored investment opportunities such as listed companies’ private placements and strategic placements in the NEEQ (National Equities Exchange and Quotations). As of the end of the reporting period, Orient Securities Innovation had 105 outstanding equity investment projects, with a total outstanding scale of RMB 4.282 billion. In the special assets investment business, it continued exploring innovative business opportunities. Under strict risk control, it broadened the underlying asset scope, cultivated new growth drivers, and strengthened the ability for proactive project management and value enhancement. As of the end of the reporting period, Orient Securities Innovation had 36 outstanding special asset investment projects, with an outstanding scale of RMB 2.442 billion.

In the future, while consolidating traditional business capabilities, Orient Securities Innovation will build new growth curves and forge differentiated competitive strength. On one hand, it will seize industry opportunities, delve into investment opportunities, optimize the structure of reserved projects, improve professional investment capabilities, and strengthen risk management. On the other hand, within the group’s overall strategy, it will position its own value more precisely, realizing deep coordination with the parent company’s business and bi-directional value empowerment.

(III) Institutional and Sales Trading

1、Proprietary Investment

The Company mainly conducts equity and non-equity proprietary investments through the securities investment business headquarters and the fixed-income business headquarters.

In 2025, with steady economic development and breakthroughs in technology, the stock market demonstrated strong resilience, achieving steady gains. Meanwhile, in the bond market, yields generally moved upward. The 10-year government bond yield rose by 17bp to around 1.85%, and the 10-year policy bank bond yield rose by 27bp to around 2%. The total China Bond Index fell 2.33%, and the China Bond Aggregate Total Index fell 1.59%.

For equity-type proprietary investments, the Company actively practiced the approach of “multi-asset, multi-strategy, and prudent investment,” adhering to a “prospects and valuation” philosophy. Through successful and effective dynamic asset allocation, it captured market opportunities and delivered more precise investments, resulting in a relatively high contribution to revenue growth overall. In particular, the Company further strengthened its high dividend strategy layout, selected industries and companies through in-depth research and investing, optimized the investment structure, and expanded the base for steady returns. At the same time, the trading-type investments actively adjusted strategies dynamically based on market changes, leveraged strengths in selecting companies, and achieved steady excess returns.

For non-equity proprietary investments. After years of deep cultivation and accumulation, the Company’s bond proprietary investment business has formed a complete investment research system and systems support. During the reporting period, the Company effectively captured bond market trading opportunities across yield curve and volatility bands, dynamically optimized the credit bond allocation structure, and further enhanced returns through diversified investments. On the liability side, it expanded financing channels through multiple measures, and the cost of funds was noticeably lower than the level of peers. During the reporting period, the Company’s interbank market business remained stable. The trading volume of listed spot instruments (including bond ETFs) increased by 90.69% year-on-year, and the trading volume of interest rate swaps increased by 167.61% year-on-year. The Company continuously optimized its bulk commodity proprietary investment business asset structure, increased the weight of arbitrage strategies in foreign exchange proprietary trading, and further improved the stability of returns. During the year, it newly obtained approval for the Southbound Connect (南向通) business qualification, adding new cross-border fixed-income investment trading channels. Over the years, the Company has built a super investment management platform, Orient SIP (SIP), with all systems developed in-house. It enabled trading across all asset classes, support across all business lines, and control across end-to-end processes. It expanded its business footprint across multiple markets including the interbank market, exchanges (on-exchange), and foreign exchange, supporting innovative businesses and improving the compliance and risk control system. It also has efficient portfolio management and asset allocation capabilities, providing solid support for proprietary investments.

In the future, the Company’s equity-type proprietary investment will continue to target absolute returns. It will continuously strengthen its ability to research and analyze macroeconomic conditions and international politics, as well as track market trends and trends in various investment assets, achieving sustainable scale investment and effective risk control to share returns from the economy and the market in a sustainable way. Non-equity proprietary investment will insist on transitioning away from directional positions, strengthening the ability for flexible allocation and investment trading, and hedging macro exposures for major asset classes. It will enhance credit risk prevention and control, place emphasis on green investments, and increase efforts to update and iterate the SIP system, driving financial technology to empower the business.

2、Customer-Need Business (客需)

The Company mainly conducts customer-need business through its Financial Derivatives headquarters and the fixed-income business headquarters.

During the reporting period, customer-need business continued developing amid industry standardization and intensifying competition. First, from a regulatory standpoint, it adhered to the direction of steady development and strengthening services to the real economy, creating a favorable external environment for business development. Second, financial institutions generally increased system investment in customer-need business, accelerating product innovation, and market competition became increasingly intense. Meanwhile, customer demand for personalized financial products rose rapidly, providing new opportunities for customer-need business development.

Over-the-counter derivatives. The Company continued to strengthen risk control, reduce the scale of high-volatility businesses, and enhance earnings stability. The entire business line achieved monthly profitability, with an overall return rate exceeding 20%. Through continuous optimization of group coordination and business models, it effectively achieved linkage of high-quality group resources and a significant increase in business revenues. During the reporting period, the OTC options business substantially reduced the Greek value exposure and tail risks, optimized concentration of structures and factors across products, maintained prudent business development, and achieved a trading scale of RMB 12.488 billion. The income swap business continued to focus on low-risk business models. Product scale such as index enhancement remained stable and maintained a steady, profitable performance, achieving a trading scale of RMB 38.447 billion. The yield certificate business provided services to financial institutions and real enterprises, achieving a trading scale of RMB 12.020 billion.

For FICC agency business. The Company’s customer-need business transformation further deepened, and its service model achieved new breakthroughs. The proportion of customer-need income continued to rise. During the reporting period, the Company implemented multiple carbon finance business models, including the first batch of newly issued emission-reduction quantity trades in the national voluntary greenhouse gas emission reduction market. The range of carbon asset portfolio types continued to enrich, and the number of institutions covered kept increasing. It added multiple FX agency scenarios, including hedging of corporate external debts, ODI FX purchases, and repayment and interest payment for external debt at maturity. The scale of its investment advisory business was RMB 37.047 billion, up 20.90%. The investment return rates of its main products ranked among the top in the industry. It achieved breakthroughs in stock-and-bond commercial (商) strategy indices and initiated productization of strategy index products. It obtained qualification to act as an agent for interest rate swap clearing. The size of repurchase quotes (报价回购) increased significantly.

In the future, the Company will continue to focus on improving the quality of OTC derivatives business, deepen the discovery of needs of institutional clients, and enhance capabilities in business innovation, trading, digitalization, sales, and risk management. For OTC options, it will strictly control overall scale and risk exposure, enrich its product line, and cultivate new business growth points. For income swap business, it will construct a more diversified product system and continuously improve the effectiveness of monitoring. For FICC customer-need business, it will continue to advance the construction of cross-border and domestic institutional sales and trading platforms for all asset classes, enriching business models around clients’ asset allocation and risk management needs, while also consolidating its advantages in carbon finance and strengthening the featured development of green finance.

3、Market Making (做市)

The Company mainly carries out equity and non-equity market making businesses through the securities investment business headquarters, the financial derivatives business headquarters, and the fixed-income business headquarters.

During the reporting period, the “technology board” for bonds was officially launched. The bond ETF market developed rapidly. Two major directions for benchmark credit bond ETFs and technology innovation bond ETFs expanded significantly, and the total market scale already surpassed RMB 800 billion. Securities firms actively participated in building the ETF ecosystem, and market making service demand for bond ETFs grew quickly. At the same time, the equity market transaction volume rebounded and ETF tracks grew explosively, providing broad space for the development of market making businesses.

For equity market making. The Company took the initiative and fully captured opportunities arising from market volatility. In complex trading environments across markets and across products, it displayed resilience. Its equity market making business revenue grew by more than 50% year-on-year. Among them, the Company is a full-license market maker for equity options, and its trading volume has continuously remained within the industry’s first tier, and it also won the Shenzhen Stock Ex