China Minsheng Banking : 2021 Annual Report (H Shares)

(a joint stock limited company incorporated in the People's Republic of China)

Stock Code: 01988

2021

ANNUAL REPORT

IMPORTANT NOTICE

The Board of Directors, the Board of Supervisors, and the Directors, Supervisors and Senior Management of the Bank warrant the truthfulness, accuracy and completeness of the contents of this Annual Report and there are no misstatements, misleading representations or material omissions in this Annual Report, and shall assume several and joint liability.

This Annual Report was considered and approved on 29 March 2022 at the 19th meeting of the eighth session of the Board of Directors of the Bank. Of the 18 Directors who were entitled to attend the meeting, 6 Directors attended the meeting in person. 12 Directors, being the Vice Chairmen ZHANG Hongwei, LU Zhiqiang and LIU Yonghao, and Directors SHI Yuzhu, WU Di, SONG Chunfeng, WENG Zhenjie, YANG Xiaoling, ZHAO Peng, XIE Zhichun, PENG Xuefeng, and QU Xinjiu, participated in the meeting by teleconference or video conference. Of the 9 Supervisors who were entitled to attend the meeting as non-voting delegates, 9 Supervisors attended the meeting as non-voting delegates.

PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers, auditors of the Bank, have audited the financial reports of 2021 prepared in accordance with the Chinese Accounting Standards ("CAS") and the International Financial Reporting Standards ("IFRSs"), respectively, and issued standard and unqualified auditors' reports, respectively.

GAO Yingxin (Chairman), ZHENG Wanchun (President), LI Bin (person in charge of finance and accounting), and YIN Xuwen (person in charge of the accounting department) warrant the truthfulness, accuracy and completeness of the financial reports included in this Annual Report.

The profit distribution plan for 2021 was approved by the Board of Directors, pursuant to which, a cash dividend of RMB2.13 (tax inclusive) will be distributed to all shareholders of the Bank for every 10 shares held on the record dates. The above profit distribution plan is subject to approval by the Shareholders' General Meeting of the Bank.

The financial data and indicators contained in this Annual Report are prepared according to the rules of the IFRS. Unless otherwise specified, all amounts are the consolidated data of the Group and denominated in RMB.

The forward-looking statements about matters such as future plans in this Annual Report do not constitute substantive commitments of the Bank to the investors, and the investors and related persons shall maintain sufficient risk awareness in this regard, and shall understand the difference among plans, forecasts and commitments.

Material Risk Warning: the Bank has no foreseeable material risks. For potential risks, please refer to the section headed "XIII. Prospects - (II) Potential risks" under "Chapter 3 Management Discussion and Analysis" of this Report.

CONTENTS

Important Notice

Contents 1

Definitions 2

Message from Chairman 4

Message from President 9

Development Strategies and Core Competitiveness of

the Bank 14

Annual Awards 23

Chapter 1 Bank Profile 24

Chapter 2 Summary of Accounting Data and Financial

Indicators 28

Chapter 3 Management Discussion and Analysis 33

• I. Overview of Operations 33

• II. Conditions of the Industry 35

• III. Analysis of Major Items of Statement of Profit

  or Loss 36

• IV. Analysis of Major Items of Statement of

  Financial Position 46

V. Qualitative Analysis of Loans 51

VI. Analysis of Capital Adequacy Ratio 57

VII. Liquidity Indicators 61

VIII. Segment Report 62

IX. Other Financial Information 64

X. Operational Concerns 66

XI. Review of Main Businesses 71

XII. Risk Management 106

XIII. Prospects 116

Chapter 4 Changes in Share Capital and Information

on Shareholders 118

Chapter 5 Information on Preference Shares 132

Chapter 6 Issuance of Bonds 136

Chapter 7 Corporate Governance 144

Chapter 8 Report of the Board of Directors 224

Chapter 9 Report of the Board of Supervisors 234

Chapter 10 ESG Governance, Environmental and

Social Responsibilities 237

Chapter 11 Major Events 242

Chapter 12 Financial Reports 252

Organisation Structure 467

List of Entities 468

Statistics of Correspondent Banks 472

2

China Minsheng Banking Corp., Ltd.

DEFINITIONS

In this report, unless the context otherwise requires, the following terms shall have the meanings set out below.

Bank, Company, China Minsheng

Bank, Minsheng Bank	China Minsheng Banking Corp., Ltd.
Group	the Company and its subsidiaries
Minsheng Financial Leasing	Minsheng Financial Leasing Co., Ltd.
Minsheng Royal Fund	Minsheng Royal Fund Management Co., Ltd.
Minsheng Royal Asset
Management	Minsheng Royal Asset Management Co., Ltd.
CMBC International	CMBC International Holdings Limited
The National Committee of the Chinese People' s Political Consultative
CPPCC National Committee	Conference
ACFIC	All-China Federation of Industry and Commerce
CBIRC	China Banking and Insurance Regulatory Commission
CSRC	China Securities Regulatory Commission
former CBRC	former China Banking Regulatory Commission
former CIRC	former China Insurance Regulatory Commission
SSE	Shanghai Stock Exchange
SZSE	Shenzhen Stock Exchange
SEHK	The Stock Exchange of Hong Kong Limited
Hong Kong Listing Rules	The Rules Governing the Listing of Securities on SEHK

Annual Report 2021
DEFINITIONS
SFO	Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
Model Code for Securities Transactions by Directors of Listed Issuers as set
Model Code	out in Appendix 10 to the Hong Kong Listing Rules
Articles of Association	the Articles of Association of China Minsheng Banking Corp., Ltd.
Reporting Period	the period from 1 January 2021 to 31 December 2021

3