Chi na CITI Important Notice The Board of Directors, the Board of Supervisors, C B (A joint stock company incorporated directors, supervisors and senior management members of the Bank guarantee that the an in the People’s Republic of China with limited liability) information contained in the 2018 Interim Report k does not include any false records, misleading Corpora Stock Code: 0998 statements or material omissions, and assume several and joint liabilities for its truthfulness, accuracy and completeness. The meeting of the Board of Directors of the Bank ti adopted the Bank’s 2018 Interim Report and Interim on Results Announcement on 27 August 2018. All of the L 10 eligible directors attended the meeting, with 8 of imi them attending the meeting onsite, and Director Zhu Gaoming and Director Wan Liming entrusting ted Director Huang Fang to attend and vote on their behalf as proxies, respectively. The supervisors and senior management members of the Bank attended 2018 the meeting as non-voting delegates. The Bank will neither distribute profits nor transfer In capital reserve to share capital for the first half of terim Re 2018. The 2018 Interim Financial Reports that the Bank prepared in accordance with the PRC Accounting Standards and the International Financial Reporting po Standards (IFRS) were reviewed respectively by rt PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers in accordance with the relevant PRC and Hong Kong review standards. Ms. Li Qingping as Chairperson of the Board of Directors, Mr. Sun Deshun as President of the Bank, Mr. Fang Heying as Vice President and Chief Financial Officer of the Bank and Ms. Li Peixia as General Manager of the Finance and Accounting Department of the Bank hereby guarantee the truthfulness, accuracy and completeness of the financial report contained in the Bank’s 2018 Interim Report. Cautionary note on forward-looking statements: Forward-looking statements such as future plans and development strategies contained in this report do not constitute substantive commitments of the Bank to its investors. Investors and relevant persons are kindly reminded to maintain adequate risk awareness of such statements and understand the differences between plans, forecasts and commitments. Material risk reminder: During the reporting period, the Bank was not aware of any material risk that would adversely affect its future development strategies and business targets. The Bank has detailed in this report the major risks that it was and may be exposed to in its operation and management and its countermeasures thereof. For relevant information thereof, please refer to “Risk Management” and “Outlook” in Chapter 6 “Report Strive to Be the Company Offering the of Board of Directors” of the report. For the purpose of this report, numbers are Best Comprehensive Financial Services expressed in Renminbi (RMB) unless otherwise specially stated. The report is prepared in both Chinese and English. Should there be discrepancy between the two 2018 versions, the Chinese version shall prevail. Address : No.9 Chaoyangmen Beidajie, Dongcheng District, Beijing Postal Code : 100010 INTERIM REPORT Investor Hotline : +86-10-85230010 Email Address : [email protected] Website : www.citicbank.com Contents Chapter 1 Definitions 2 Chapter 2 Corporate Introduction and Financial Highlights 5 Chapter 3 Chairperson’s Letter to Shareholders 9 Chapter 4 President’s Letter to Shareholders 15 Chapter 5 Business Summary 20 Chapter 6 Report of Board of Directors 23 Economic, Financial and 23 Regulatory Environments Overview of Business Operation 23 and Management Analysis of the Financial Statements 24 Business Overview 42 Risk Management 61 Internal Control 78 Internal Audit 80 Capital Management 81 Material Acquisitions, Disposals of Assets 82 and Mergers of Enterprises Information about Structured Vehicles 82 Controlled by the Bank Investments 82 Equity Financing 83 Outlook 83 Chapter 7 Significant Events 85 Chapter 8 Changes in Share Capital and Shareholdings 95 of Substantial Shareholders Chapter 9 Preference Shares 103 Chapter 10 Directors, Supervisors, Senior Management 106 Members, Staff and Affiliates Chapter 11 Corporate Governance 109 Chapter 12 Report on Review of Interim Financial 113 Information Chapter 13 List of Domestic and Overseas Affiliates 213 Chapter 1 Definitions Articles of Association Articles of Association of China CITIC Bank Corporation Limited Auditors PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers Baidu Fujian Baidu Borui Internet Technology Co., Ltd. Bank/Company/China CITIC Bank/ China CITIC Bank Corporation Limited CITIC Bank/CNCB BBVA Banco Bilbao Vizcaya Argentaria S.A. BFAE Binhai (Tianjin) Financial Assets Exchange Company Limited Board of Directors Board of Directors of the Bank Board of Supervisors Board of Supervisors of the Bank CBIRC China Banking and Insurance Regulatory Commission Central Bank/PBOC The People’s Bank of China China Tobacco China Tobacco Corporation CIAM CITIC International Assets Management Limited CIFH CITIC International Financial Holdings Limited CITIC aiBank CITIC aiBank Corporation Limited CITIC Corporation Limited CITIC Corporation Limited (formerly known as CITIC Limited prior to renaming in August 2014) CITIC Financial Leasing CITIC Financial Leasing Co., Ltd. CITIC Group CITIC Group Corporation Limited (formerly known as CITIC Group Corporation prior to renaming in December 2011) CITIC Limited CITIC Limited (formerly known as CITIC Pacific Limited prior to renaming in August 2014) CITIC Pacific CITIC Pacific Limited CNCB Investment CNCB (Hong Kong) Investment Co., Ltd. (formerly China Investment and Finance Limited) CNCBI CITIC Bank International Limited (formerly CITIC Ka Wah Bank Limited) CNCBI (China) CNCBI (China) Corporation Limited CSRC China Securities Regulatory Commission Hong Kong Listing Rules The Listing Rules of the Stock Exchange of Hong Kong Limited Joint-stock Banks Including China CITIC Bank, China Merchants Bank, China Minsheng Bank, Industrial Bank, Shanghai Pudong Development Bank, China Everbright Bank, Huaxia Bank, Ping’an Bank, Guangdong Development Bank, China Zheshang Bank, China Bohai Bank and Evergrowing Bank. Lin’an CITIC Rural Bank Zhejiang Lin’an CITIC Rural Bank Limited MIIT Ministry of Industry and Information Technology of the People’s Republic of China Ministry of Transport Ministry of Transport of the People’s Republic of China MOF Ministry of Finance of the People’s Republic of China Poly Group China Poly Group Corporation Limited 2 China CITIC Bank Corporation Limited Chapter 1 Definitions PRC Accounting Standards PRC Accounting Standards for Enterprises PricewaterhouseCoopers PricewaterhouseCoopers Zhong Tian LLP SAFE State Administration of Foreign Exchange SEHK The Stock Exchange of Hong Kong Limited SSE Shanghai Stock Exchange State Council State Council of the People’s Republic of China The Group China CITIC Bank Corporation Limited and its subsidiaries The reporting period From 1 January 2018 to 30 June 2018 Xinhu Zhongbao Xinhu Zhongbao Co., Ltd. (Note: The definitions are arranged in the alphabetic order of Mandarin Pin Yin) Geographical segments of the Group and the Bank as disclosed in this report and as defined for financial reporting purposes are as follows: “Yangtze River Delta” refers to the following areas where tier-1 branches and a subsidiary of the Group are located: Shanghai, Nanjing, Suzhou, Hangzhou and Ningbo, as well as Lin’an CITIC Rural Bank, the subsidiary; “Pearl River Delta and West Strait” refers to the following areas where tier-1 branches of the Group are located: Guangzhou, Shenzhen, Dongguan, Fuzhou, Xiamen and Haikou; “Bohai Rim” refers to the following areas where tier-1 branches and a subsidiary of the Group are located: Beijing, Tianjin, Dalian, Qingdao, Shijiazhuang and Jinan; and CITIC Financial Leasing Co., Ltd, the subsidiary. “Central” region refers to the following areas where tier-1 branches of the Group are located: Hefei, Zhengzhou, Wuhan, Changsha, Taiyuan and Nanchang; “Western” region refers to the following areas where tier-1 branches of the Group are located: Chengdu, Chongqing, Xi’an, Kunming, Nanning, Hohhot, Urumqi, Guiyang, Lanzhou, Xining, Yinchuan and Lhasa; “Northeastern” region refers to the following areas where tier-1 branches of the Group are located: Shenyang, Changchun and Harbin; “Head Office” refers to the headquarters and the Credit Card Center of the Bank; and “Overseas” includes all the operations of CNCB Investment and CIFH and its subsidiaries. 2018 Interim Report 3 Chapter 2 Corporate Introduction and Financial Highlights 4 China CITIC Bank Corporation Limited Chapter 2 Corporate Introduction and Financial Highlights 2.1 Corporate Information Registered Name in Chinese: 中信銀行股份有限公司 (short name as “中信銀行”) Registered Name in English: CHINA CITIC BANK CORPORATION LIMITED (abbreviated as “CNCB”) Legal Representative: Li Qingping Authorized Representatives: Sun Deshun, Lu Wei Secretary to the Board of Directors: Lu Wei Joint Company Secretaries: Lu Wei, Kam Mei Ha Wendy(FCS, FCIS) Securities Representative of the Company: Wang Junwei Registered Address: No. 9 Chaoyangmen Beidajie, Dongcheng District, Beijing Postal Code of the Registered Address: 100010 Office Address: No.9 Chaoyangmen Beidajie, Dongcheng District, Beijing Office Postal Code: 100010 Official Website: www.citicbank.com Telephone Number/Fax Number: +86-10-85230010/+86-10-85230079 Email Address: [email protected] Principal Place of Business in Hong Kong: Level 54, Hopewell