Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Huishang Bank Corporation Limited* 徽商銀行股份有限公司* (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 3698 and 4608 (Preference shares)) 2017 INTERIM RESULTS ANNOUNCEMENT The board of directors (the“ Board”) of Huishang Bank Corporation Limited (the “Bank”) is pleased to announce the unaudited interim results of the Bank and its subsidiaries for the six months ended June 30, 2017. This announcement, containing the full text of the 2017 Interim Report of the Bank, complies with the relevant content requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to preliminary announcements of interim results. The printed version of the Bank’s 2017 Interim Report will be delivered to the holders of H Shares of the Bank and available for viewing on the websites of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and of the Bank at www.hsbank.com.cn in September 2017. By order of the Board Huishang Bank Corporation Limited* Li Hongming Chairman Hefei, Anhui Province, China August 25, 2017 As at the date of this announcement, the board of directors of the Bank comprises Li Hongming, Wu Xuemin and Ci Yaping as executive directors; Zhang Feifei, Zhu Jiusheng, Qian Li, Lu Hui, Zhao Zongren, Qiao Chuanfu and Gao Yang as non-executive directors; Au Ngai Daniel, Dai Genyou, Wang Shihao, Zhang Shenghuai and Zhu Hongjun as independent non-executive directors. * Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong. Contents Definitions 2 Chapter I Corporate Information 3 Chapter II Summary of Accounting Data and Business Data 5 Chapter III Management Discussion and Analysis 7 Chapter IV Changes in Share Capital and Particulars of Shareholders 53 Chapter V Directors, Supervisors, Senior Management, 59 Employees and Institutions Chapter VI Corporate Governance 64 Chapter VII Significant Events 67 Chapter VIII Interim Financial Report 72 INTERIM REPORT 2017 Huishang Bank Corporation Limited Definitions In this interim report, unless the context otherwise requires, the following terms shall have the meaning set out below. “Bank” or ”Huishang Bank” Huishang Bank Corporation Limited, including its subsidiaries, branches and sub- branches “CBRC” the China Banking Regulatory Commission “CBRC Anhui Office” the China Banking Regulatory Commission Anhui Office “CSRC” the China Securities Regulatory Commission “Domestic Shares” the ordinary shares issued by the Bank in the PRC with a nominal value of RMB1.00 per share “H Shares” ordinary shares issued by the Bank to overseas investors which are denominated in RMB, subscribed for in Hong Kong Dollars and listed on the Main Board of the Hong Kong Stock Exchange “HK$” or ”Hong Kong Dollars” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong” the Hong Kong Special Administrative Region of the PRC “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “H Share Listing” the listing of H Shares of the Bank on the Main Board of the Hong Kong Stock Exchange “H Share Listing Date” the date on which dealings in H Shares of the Bank first commenced on the Hong Kong Stock Exchange, i.e. 12 November 2013 “Latest Practicable Date” the latest practicable date for the purpose of ascertaining certain information contained in this report, i.e. 25 August 2017 “Non-green Industries” the heavily-polluting, highly energy-consuming and over-capacity industries “PBOC” the People’s Bank of China “Offshore Preference Shares” 44,400,000 non-cumulative perpetual offshore preference shares with a nominal value of RMB100 per share issued by the Bank and listed on the Hong Kong Stock Exchange “Reporting Period” the first half of 2017 (1January 2017 to 30 June 2017) “Three Dimensional Rural Issues” abbreviation for issues relating to agriculture, rural areas and farmers “US$” or “U.S. dollars” U.S. dollars, the lawful currency of the United States “Yuan” or ”RMB” Renminbi, the lawful currency of China. Unless otherwise specifies herein, the currency used in this report shall be Renminbi 2 INTERIM REPORT 2017 Huishang Bank Corporation Limited Chapter I Corporate Information 1.1 CORPORATE INFORMATION 1.1.1 Statutory Chinese name: 徽商銀行股份有限公司1 Statutory English name: Huishang Bank Corporation Limited 1.1.2 Statutory representative: Li Hongming Authorized representatives: Wu Xuemin, Ngai Wai Fung Secretary to the Board of Directors: Yi Feng Company secretary: Ngai Wai Fung 1.1.3 Registered and business office address: Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC 1.1.4 Contact address: Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC Tel: +86-551-62667787 Fax: +86-551-62667787 Post code: 230001 Bank’s website: www.hsbank.com.cn E-mail: [email protected] 1.1.5 Principal place of business in Hong Kong: 18/F, Tesbury Centre, 28 Queen’s Road East, Wanchai, Hong Kong 1.1.6 Domestic auditor: Ernst & Young Hua Ming LLP Office address: Room 01-12, Level 17, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng District, Beijing, the PRC International auditor: Ernst & Young Office address: 22/F, Citic Tower, 1 Tim Mei Avenue, Hong Kong 1.1.7 Legel advisor as to PRC law: DeHeng Law Offices Legel advisor as to Hong Kong law: Latham & Watkins 1.1.8 Domestic Shares trustee agency: China Securities Depository and Clearing Corporation Limited H Shares registrar: Computershare Hong Kong Investor Services Limited Note: 1. Huishang Bank Corporation Limited is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking/deposit-taking business in Hong Kong. 3 INTERIM REPORT 2017 Huishang Bank Corporation Limited Chapter I Corporate Information 1.2 COMPANY PROFILE Headquartered in Hefei, Anhui Province, Huishang Bank is the first regional joint stock commercial bank in the PRC established through the merger and reorganization of city commercial banks and urban credit cooperatives with the approval of the CBRC. The Bank was incorporated on 4 April 1997, and changed its name to Huishang Bank Corporation Limited on 30 November 2005. On 28 December 2005, the Bank officially merged with the 5 city commercial banks of Wuhu, Ma’anshan, Anqing, Huaibei and Bengbu and the 7 urban credit cooperatives of Lu’an, Huainan, Tongling, Fuyang Technology, Fuyang Xinying, Fuyang Yinhe and Fuyang Jinda in Anhui Province. The Bank officially opened for business on 1 January 2006. On 12 November 2013, the Bank underwent H Share Listing (stock code: 3698). The Bank holds a financial institution license numbered B0162H234010001 approved by the CBRC Anhui Office and a corporate legel entity business license numbered 340000000026144 approved by the Anhui Provincial Administration of Industry and Commerce. The registered address is Block A, Tianhui Building, 79 Anqing Road, Hefei, Anhui Province, the PRC. As of 30 June 2017, the registered capital of Huishang Bank was RMB11,049,819,283. The Bank successfully issued Offshore Preference Shares with a total amount of US$888 million in November 2016 and was listed on the Hong Kong Stock Exchange (stock code: 4608). The Bank’s principal business scope in the PRC covers the taking of deposits from corporates and retail customers, the granting of loans using the deposits received, and the conducting of capital business, which encompasses money market business, investment and trading business and transactions on behalf of customers. As of 30 June 2017, the Bank had 9,089 on-the-job employees. Apart from its headquarters, the Bank has 419 branches and sub-branches (including 17 branches and 402 sub-branches). The Bank has three subsidiaries, namely Huiyin Financial Leasing Co., Ltd., Jinzhai Huiyin Rural Bank Co., Ltd. and Wuwei Huiyin Rural Bank Co., Ltd. and owns equity interests in Chery Huiyin Motor Finance Service Co., Ltd.. 4 INTERIM REPORT 2017 Huishang Bank Corporation Limited Chapter II Summary of Accounting Data and Business Data* 2.1 MAIN FINANCIAL INFORMATION Unit: RMB million, except for percentages Changes over the corresponding period of January to January to last year Operational results June 2017 June 2016 +/(-)% Net operating income(1) 10,815 10,167 6.37 Profit before tax 4,864 4,363 11.48 Net profit attributable to shareholders of the Bank 3,780 3,408 10.92 Unit: RMB, except for percentages Changes over the corresponding period of January to January to last year Per ordinary share June 2017 June 2016 +/(-)% Basic earnings attributable to shareholders of the Bank 0.34 0.31 9.68 Diluted earnings attributable to shareholders of the Bank 0.34 0.31 9.68 Net assets attributable to shareholders of the Bank as at the end of the period 4.40 3.87 13.70 Unit: RMB million, except for percentages Changes over the end of 30 June 31 December last year Scale indicators 2017 2016 +/(-)% Total assets 812,678 754,774 7.67 Including: Total loans and advances 295,915 277,371 6.69 Total liabilities 756,587 701,591 7.84 Including: Total customer deposits 511,080 462,014 10.62 Equity attributable to shareholders of the Bank 54,659 51,871 5.37 Note: (1) Net operating income comprises net interest income, net fee and commission income, net trading income, net income from investments in securities, as well as other net operating income, excluding net income from investments in associates.