REG - Huatai Securities Co - IMPLEMENTATION OF EQUITY DISTRIBUTION FOR 2020

Huatai Securities CoAnnouncement

30/07/2021 11:00

RNS Number : 0806H
  
Huatai Securities Co., Ltd 
  
30 July 2021
  
 

ANNOUNCEMENT ON IMPLEMENTATION OF EQUITY DISTRIBUTION FOR 2020 OF HUATAI SECURITIES CO., LTD.
I. SESSION AND DATE OF THE GENERAL MEETING AT WHICH THE DISTRIBUTION PLAN WAS APPROVED
The profit distribution plan was considered and approved at the 2020 annual general meeting of the Company on June 22, 2021. The announcement on the resolution of the general meeting has been published on the website of the Shanghai Stock Exchange (http://www.sse.com.cn), HKEXnews website of the Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.hk), website of the London Stock Exchange (http://www.londonstockexchange.com) and website of the Company (http://www.htsc.com.cn).
II. DISTRIBUTION PLAN
1.    Year of Distribution: 2020
2.    Distribution Participants:
All shareholders of the Company (excluding the special account for securities repurchase of Huatai Securities Co., Ltd.) registered in the Shanghai Branch of China Securities Depository and Clearing Company Limited (hereinafter referred to as "CSDC Shanghai Branch") as at the close of the Shanghai Stock Exchange in the afternoon of the record date.
In accordance with the Company Law of the People's Republic of China (《中华人民共和国公司法》), the Securities Law of the People's Republic of China (《中华人民共和国证券法》), the Implementation Rules of Shanghai Stock Exchange for Share Repurchase by Listed Companies (《上海证券交易所上市公司回购股份实施细则》) and other laws, regulations, regulatory documents and relevant provisions of the Articles of Association, the shares deposited in the special account for securities repurchase of the Company shall not be entitled to the profit distribution.
3.    Differentiated Dividend Distribution and Capitalization Plan:
(1) The differentiated dividend distribution plan
According to the Resolution on the 2020 Profit Distribution of the Company, which was considered and approved at the 2020 annual general meeting of Company, the profit distribution plan of the Company for 2020 is as follows.
1. The Company will distribute cash dividend of RMB4.00 (tax inclusive) per 10 shares based on the Company's total share capital of 9,076,650,000 shares after deducting the A shares deposited in the special account for securities repurchase and temporarily not used in the equity incentive scheme. The actual total amount of payment will be calculated based on the total number of shares that will be entitled to the dividend distribution on the record date for the implementation of the distribution plan by the Company. The remaining profit available for distribution to investors will be carried forward to the next year.
2. Cash dividend is denominated and declared in Renminbi, and paid to holders of A shares (including the depositary of GDRs) and the investors of Southbound Trading in Renminbi.
In connection with the profit distribution, the Company will distribute cash dividend of RMB0.40 per share (tax inclusive) based on 9,031,371,505 shares after deducting 45,278,495 shares deposited in the special account for repurchase of the Company, with the total cash dividend of RMB3,612,548,602.00.
(2) The Calculation Basis for Ex-rights and Ex-dividends of the Differentiated Dividend Distribution
According to the relevant provisions of the Rules Governing the Listing of Stocks of the Shanghai Stock Exchange, the Company calculates the ex-rights (ex-dividends) opening reference price according to the following formula:
Ex-rights (ex-dividends) reference price = [(previous closing price - cash dividends per share) + rights issue (new share) price × percentage of changes in circulating shares] ÷ (1+ percentage of changes in circulating shares)
According to the profit distribution plan considered and approved at the 2020 annual general meeting of Company, the specific calculation process of the differentiated dividend ex-rights and ex-dividends is as follows:
The total share capital of the Company is 9,076,650,000 shares. After deducting the 45,278,495 shares held in the special account for securities repurchase, which shall not be entitled to the profit distribution, the number of shares actually participated in the distribution are 9,031,371,505 shares;
Cash dividend per share = total share capital participating in distribution × cash dividend per share actually distributed ÷ total share capital = (9,031,371,505 × RMB0.4) ÷ 9,076,650,000 ≈ RMB0.40;
According to the Resolution on the 2020 Profit Distribution of the Company considered and approved at the 2020 annual general meeting, the profit distribution plan does not involve capitalization of shares or distribution of additional shares, so the percentage of changes in circulating shares of the Company is "0".
In summary, the Company's ex-rights (ex-dividends) reference price = [(previous closing price- RMB0.40) + 0] ÷ (1+0) = previous closing price - RMB0.40 per share.
III. RELEVANT DATE



Class of shares


Record date


Last trading day


Ex- rights (ex-dividends) date


Cash dividend payment date




A Shares


2021/8/5


－


2021/8/6


2021/8/6



IV. PROFIT DISTRIBUTION MATTERS FOR GDR INVESTORS
The Company distributes cash dividends to Citibank and National Association, the nominal holders of domestic basic A Shares corresponding to GDR. According to the Corporate Income Tax Law of the PRC (《中华人民共和国企业所得税法》) and other relevant tax regulations, the Company shall withhold and pay income taxes at a tax rate of 10%. For the qualified investors who invest in the GDR issued by the Company on London Stock Exchange and comply with the relevant domestic and foreign regulatory rules (hereinafter referred to as "GDR investors"), if they are entitled to the treatment as stipulated in relevant tax treaties (arrangements) after receiving dividend income on GDR, applications can be submitted to the governing tax authority according to regulations.
The record date of GDR investors is the same as the record date of holders of A Shares. The cash dividend will be distributed to GDR investors by Citibank and National Association through Euroclear Bank SA/NV, Clearstream Banking, S.A. on August 13, 2021 (London time).
 
Huatai Securities Co., Ltd.
July 30, 2021
 

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