中国国际金融股份有限公司

China International Capital Corporation Limited

(A joint stock limited company incorporated in the People’s Republic of China)

(Stock Code: 3908)

China International Capital Corporation Limited (“CICC” or “the Company”, Stock code: 3908. HK) announced its annual results for the twelve months ended December 31, 2016. In 2016, the Company recorded total revenue and other income of RMB8.94 billion; and profit of RMB1.84 billion; with a weighted average return on net assets of 10.7%. As at the end of 2016, the total assets of the Company amounted to RMB101.95 billion, representing an increase of 8.3% compared to the end of 2015; net assets amounted to RMB18.5 billion, representing an increase of 12.5% compared to the end of 2015.

In 2016, five major business lines of CICC, i.e. Investment Banking, Equities, FICC, Wealth Management and Investment Management, developed evenly and complemented each other. The comprehensive business mix enabled the Company to weather through the unfavorable market conditions of shrinking trading volume and bond market turmoil, and to capture development opportunities in a timely manner to deliver solid operating results. Under the existing business framework, the Company further enriched the business units, some of which have become new growth drivers for each business line.

Traditional Business Maintained the Market Leading Position

CICC’s investment banking business maintained its market leading position and played an important role in expanding its market influence and brand reputation. The Company continued to consolidate its leading position in the reform of state-owned enterprises and has completed several milestone transactions, which have been established as model examples of value enhancement of SOEs through structural adjustments. The Company has also made remarkable achievements in the development of new industries and new customers, with particularly extraordinary results in the pharmaceutical and healthcare, technology, media and telecommunication sectors. Besides, the Company took the lead in bond product innovation and achieved leap-forward development in overseas bond underwriting. The Company explored a new model for combining the investment banking business with balance sheet-based business as well. In 2016, CICC ranked No.1 sponsor for global IPOs of PRC-based enterprises in terms of aggregate financing size, No.1 global financial advisor for M&As by PRC-based companies in terms of transaction amount for a second straight year, advised on Chinese M&A transaction of over US$100 billion for a second straight year.

Initial Success of Transformation towards Balance Sheet-based Service Business

In 2016, CICC focused on enhancing the capabilities of using the balance sheet to provide customers with all-round services, improved capital utilization capabilities rapidly and increased value-added from full-scope service offerings significantly. In terms of the equities business, the Company successfully built up an integrated financial service platform. As a result, CICC’s market share of brokerage business increased despite market downturn. The product size on the prime brokerage platform exceeded RMB80 billion, the options and derivatives business has become a new growth driver and source of income, while the overseas team continued to enrich the portfolio of trading products. In terms of the FICC business, the Company forged ahead on the FICC platform building efforts and provided our clients with customized products and solutions in structured financing, investment and risk management. In 2016, the Company’s client business maintained rapid development.

Rapid Progress in the Construction of Wealth Management and Investment Management Platforms

The wealth management business and investment management business have made remarkable achievements in platform construction. The two business lines are expected to become the major forces to drive CICC’s growth at the next stage. In terms of the wealth management business, in 2016, the Company’s wealth management customers further grew, average assets per account recorded a new high, total client account assets increased rapidly, and revenue structure kept optimizing, testifying to the industry-leading business model. In terms of the investment management business, the Company’s assets under management by the investment management segment maintained a strong growth momentum. In terms of the asset management business, the Company further enriched product lines to cover pension, quantitative investment, bank outsourcing, and cross-border multi-strategy products. For CICC Fund Management, a comprehensive portfolio of mutual fund and segregated account products has been taking shape. The private equity investment platform continued to diversify its portfolio.

Cross-border Service Capability was Further Enhanced

In 2016, the Group’s revenue from overseas business grew steadily to RMB2.03 billion, accounting for 23% of the Group’s revenue. In the primary market, CICC further consolidated the traditional advantages in Hong Kong equity offerings, and has made major breakthroughs in overseas mergers and acquisitions, overseas bond offerings and the Singapore equity market. In the secondary market, the Company firmly grasped the opportunities brought about by increasing interconnection between markets, further expanded coverage of QFII/RQFII, and global long funds, and retained its leading position in terms of market trading share and the number of accounts opened in connection with the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect. In terms of the investment management business, in addition to further enriching the cross-border platform, the Company will more effectively meet the double-way requirements of the influx of foreign capital and outbound investments of domestic investors.

Mid-and-back-office Functions were Strengthened

In 2016, the Company ramped up the development of information technology systems. The Company focused on improving the two major IT platforms, i.e. the investment platform and the basic trading platform and fully safeguarded the stable and efficient operation of the Company. At the same time, The Company implemented comprehensive asset and liability management to improve debt financing capacity and effectively reduce financing costs. In 2016, the Company gained the highest overseas credit rating in the industry, i.e. BBB+ by S&P, BBB+ by Fitch and Baa1 by Moody’s. By vigorously managing operational risks and establishing a robust compliance culture, the Company strictly conformed to the stringent industry regulatory requirements, and maintained the relevant risk indicators below the warning line.

Material Merger and Acquisition

In 2016, CICC announced strategic reorganization of China Investment Securities Company Limited(“CISC”), through which its business scale has been significantly enlarged, physical network and client base substantially expanded, and overall competitiveness further enhanced, preparing the Company for a major leap forward in the future. By combining CICC’s brand, experience, product and service capabilities with the over 3 million customers and 200 widely-covered securities branches of CISC, CICC and CISC are expected to achieve considerable synergies in various respects of business expansion, particularly in wealth management and investment banking business.

Outlook

In 2017, China’s economy is expected to grow steadily under the “New Normality”. Driven by deepened structural reform and financial disintermediation, more capital will seek to go overseas, cross-border mergers and acquisitions will surge, and the “One Belt, One Road” initiative will embody enormous opportunities. CICC will actively adapt itself to the new situations at home and abroad and seize the opportunities to forge ahead on its strategies. By deepening its Chinese roots while expanding its international presence, CICC will continue to enhance its core competitiveness and market influence, to carry forward towards the goal of establishing itself as a world-class investment bank and open a brand new chapter for the Company!