Huamao Co., Ltd. (000850): The Profit Distribution Of The Participating Companies Is Expected To Obtain Investment Income Of 34.6358 Million Yuan

Huamao shares (000850. SZ) announced that as of the announcement date, the company now holds 2.5 million shares of GF Securities; It holds 45.3765 million shares of Guotai Junan.

On May 13, 2021, the 2020 annual general meeting of shareholders held by GF Securities deliberated and approved the profit distribution plan of GF Securities in 2020: the cash dividend of RMB 4.5 (including tax) was distributed to all shareholders for every 10 shares based on the number of shares on the registration date of dividends and dividends of GF Securities. According to the accounting standards, the company is expected to recognize an investment income of 9.225 million yuan, which will be included in the company's half year profit in 2021, accounting for 4.15% of the company's net profit (audited) attributable to the shareholders of the listed company in 2020.

On June 28, 2021, the 2020 annual general meeting of shareholders held by Guotai Junan deliberated and passed the proposal on submitting and deliberating the company's profit distribution plan in 2020: Based on the total share capital of the company on the equity registration date of Guotai Junan's dividend distribution, cash dividends of RMB 5.6 (including tax) per 10 shares were distributed to the A-share shareholders and H-share shareholders registered on the equity registration date of dividend distribution. According to the accounting standards, the company is expected to recognize an investment income of 25.4108 million yuan, which will be included in the company's half year profit in 2021, accounting for 11.44% of the company's net profit (audited) attributable to the shareholders of the listed company in 2020.

The final accounting treatment of the above investment income recognition shall be subject to the annual audit results of the company's accountants. According to the accounting policy and holding intention, the company classifies its holdings of GF Securities and Guotai Junan shares into trading financial assets for accounting. After the implementation of the above-mentioned profit distribution scheme of GF Securities and Guotai Junan, such factors as ex right and ex dividend may have a certain impact on the market price of the underlying stocks.