What is the P/E ratio and P/B ratio

1. P/E ratio

Also known as the price-to-earnings ratio, it is the profit per stock market.

Preliminary earnings are calculated using basic earnings (BasicEPS), which is the income attributable to ordinary shareholders/average number of ordinary shares issued per share.

Notes:

● In the case of a company’s transfer increase, share splitting, and share consolidation, the average number of common shares issued outside will change. There are two situations for changes in the number of shares: one is the change in the number of shares with capital changes; the other is the number of shares with unchanged capital change. When the capital changes, the average number of shares should be calculated; when the capital does not change, the average number of returns is not calculated.

● As the financial reports in the Hong Kong and U.S. markets may be in currencies other than the reporting area, exchange rate conversion is required in the calculation. Different exchange rates will cause differences in results.

2. P/B ratio

It is the ratio of highest priority to relative net assets.

Some of the net net assets are net assets attributable to ordinary shareholders (shareholders’ equity)/total number of ordinary shares outstanding.

Notes:

● Since the financial reports in the Hong Kong and U.S. markets may be in non-reporting currencies, exchange rate conversion is required during calculation. Different exchange rates will cause differences in results.