CICC Announces 2021 Annual Results

Net Profit Increases by 49.54% to RMB10.78 Billion

Realizes Comprehensive High-quality Development in Various Businesses,While Serving the Real Economy Through Multiple Channels

BEIJING,March 31,2022 -- China International Capital Corporation Limited ("CICC" or "the Company",601995.SH,3908.HK) today announced its annual results for the year ended December 31,2021. As of the end of 2021,total assets of the Group reached RMB649.80 billion,up 24.57% year on year; the net assets(note) amounted to RMB84.42 billion,up 17.85% year on year. The Group recorded operating revenue of RMB30.13 billion,up 27.35% year on year; and net profit(note) of RMB10.78 billion,increasing by 49.54% year on year,with a weighted average return on net assets of 14.64%. The Company has further consolidated its market position,continued to create sound values and returns for shareholders,and steadily improved its comprehensive strength and market competitiveness.

Staying true to the original aspiration of "For the Nation",CICC serves national strategies with high-quality and high-standard. In 2021,CICC completed direct financing totaling RMB4.2 trillion,assisted science and technology enterprises in equity financing of nearly RMB410 billion,and supported PRC-based enterprises in overseas financing of nearly US$120 billion,completed green bond issuance of nearly RMB120 billion,and participated in resolving risky debts of nearly RMB2 trillion.

The Company has clearly developed and effectively implemented its key strategies of internationalization,regionalization and digitization. By actively serving the national "dual-circulation" economic strategy,the Company has further expanded its global presence according to its own strategic needs,so as to win more voice and pricing power in the international capital markets. Revenue of the Company's international business now accounts for approximately one quarter of the total. Throughout the year,the Company assisted many Chinese-funded enterprises in issuing overseas equity and overseas bonds,ranking first in the market. It also assisted the Ministry of Finance (MoF) of the People's Republic of China in issuing sovereign bonds,and assisted the Asian Infrastructure Investment Bank (AIIB) in issuing global sustainability bonds,thus playing a leading role in cross-border capital flows. The strategy of regionalization enables the Company to "remain committed to the Chinese market",and be aligned with the central government's major regional strategies. It also allows more regions in China to promote economic and social progress with financial assistance. Furthermore,the Company intensified efforts to provide regional services in 15 cities and provinces in key regions,such as the Beijing-Tianjin-Hebei Region,the Yangtze River Delta,the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Economic Belt. As for digitization,the Company has invested substantial financial resources,manpower and time to implement digital transformation,build the "Digital CICC",and embrace technology and the future. Through digitization,the Company sought to upgrade its service model and customer experience,and significantly enhance the integration of business and technology.

Coordinated Development Across All Business Lines Thanks to Enhanced Professional Capabilities

Investment banking business continued to consolidate its key strength and take the lead in various business lines. Both A-share IPO underwriting amount and A-share follow-on offerings projects underwriting amount of CICC ranked second,and Hong Kong IPO underwriting amount ranked first as a JGC. CICC ranked fifth in onshore bonds underwriting amount,second in underwriting amount of onshore convertible bonds,and first in overseas bond underwriting amount among PRC-based companies. The Company completed the issuance of milestone deals in the field of publicly-offered infrastructure REITs,"carbon-neutral" bonds and more. Its M&A business continued to focus on state-owned enterprises reform,new economy market-driven transactions,and cross-border transactions. As a result,CICC maintained its leading position and ranked first in the PRC M&A market for the eighth consecutive year. Furthermore,the Company established the Debt Restructuring Management Group (DRM) to support the government and corporate clients to defuse risks and secure employment.

Equities business maintained high-quality growth in the domestic and overseas as well as on-exchange and OTC business lines. In 2021,the equities business continued to enhance its capabilities to provide excellent customer services. The domestic and overseas business recorded significant growth,outperforming the overall market. The Equities Department promoted both on-exchange and OTC business,and continued to optimize the business structure. A multi-layered and all-round risk control and compliance system has been established,and the digitalization process for technology-driven development has been accelerated. As for institutional business,the Equities Department expanded the coverage of diversified client types,with the turnover hitting a record high. The QFII client coverage has maintained the leading position for 18 consecutive years. In terms of product business,the domestic businesses of CICC,as a core dealer of derivatives,continued to improve product and service capabilities throughout the whole life cycle and maintained its market advantage. The overseas businesses continued to diversify the product and client structure. Regarding international business,overseas teams participated in the implementation of more than 90 projects in overseas primary and secondary markets,and,therefore,kept a leading position in the market share of connectivity trading. Meanwhile,equities business continued to expand its presence in Germany,Switzerland and other international markets.

FICC business has achieved breakthroughs in multiple aspects. The business showed strong growth in bond underwriting and trading volume. More specifically,FICC ranked first in the market in underwriting amount of USD bonds of PRC-based companies and the spot transaction volume of book-entry government bonds,and ranked second among securities firms in underwriting amount of asset-backed securities products. FICC further enhanced the coverage of international clients and transaction service capabilities,and established a global sales network that covers New York,London,Singapore and Tokyo with the Chinese Mainland and Hong Kong SAR as centers,ranking second among securities firms in cross-border market making amount. In 2021,FICC improved its product innovation and customer services and continued to develop derivatives business,and expand the interest rate and foreign exchange businesses,ranking among the leading market makers in key categories of commodities.

The scale of the asset management business grew rapidly,with its industry ranking hitting a new high. As the transitional period for the new asset management regulations entered its final year,the asset management business continued to diversify its product lines,and strengthened the product mix regarding green finance and technological innovation. CICC Fund Management was actively engaged in industry innovation and participated in the first batch of C-REITs pilot projects. The asset management business continued to strengthen team building and talent training,improve the investment research management system and layout,enhance cumulative performance of products,and rapidly advance the building of an institutional service platform and an integrated investment and research platform so as to accelerate the transformation of financial technology,expand the depth and breadth of client services,and strengthen cooperation with retail and overseas channels. As a result,the AUM of the asset management business of the Company exceeded trillion-scale.

Private equity business has further consolidated its leading position. As of the end of 2021,the subscribed asset under management was RMB327.82 billion. CICC Capital completed the fundraising for a number of funds focusing on national strategies of technological innovation and carbon neutrality,and the newly-raised funds exceeded RMB55 billion. Meanwhile,CICC Capital introduced the National Social Security Fund through the CICC Genesis National FoF,and obtained the controlling interest of the management company of Beijing Science & Technology Innovation Fund. CICC Capital accelerated the deployment of USD-denominated funds,M&A funds,venture capital funds and other key businesses,and established cooperation with local governments in various fields to rapidly promote the internationalization and regionalization process of CICC Capital.

Wealth management business was fully integrated,and product allocation business has witnessed a significant growth,becoming more capable to "retain long-term money". The size of existing products topped RMB300 billion,representing a year-on-year increase of approximately 90%. CICC Wealth Management continued to lead the industry transformation of fee generating assets business,and created the industry-leading low-threshold allocation product "Mini 50" in the brokerage industry. The buy-side fee-based assets reached RMB80 billion,up over 180% year on year. CICC Wealth Management continued to consolidate the full-spectrum customer base. Private wealth management business rose rapidly,and the business for the mass and affluent customers grew steadily. In addition,CICC Wealth Management implemented a fully agile organizational structure,and completed the integration of 20 domestic securities offices engaged in wealth management business with CICC Wealth Management,as the first synchronized integration of OTC system and legal person in the industry.

Research business continued to leverage its advantage of research and play its role of a think tank. CICC Research and CICC Global Institute (CGI) are committed to working side by side to become one research platform with comprehensive advantages. The research team employed over 300 highly experienced professionals,and covered more than 40 sectors and 1,300 companies listed on stock exchanges in Chinese mainland,Hong Kong SAR,New York,Singapore,Frankfurt,London and Paris,delivering services to its clients both at home and abroad through its offices and platforms across the world. The scope of its investment analysis and research products ranges from macro economy and market strategy to fixed income,financial engineering,asset allocation,equities,commodities,and foreign exchange. Thanks to its professional,independent and unbiased research products,CICC Research has won recognition from major domestic and overseas investors. The CGI,as a new think tank,focuses on the New Development Concept,aiming to provide support for public policy research and decision-making and build a domestic and global exchange platform through research papers,themed forums and field survey.

Fulfilling CSR Initiatives and Practicing ESG Concept

The Company is committed to fulfilling its corporate social responsibility and implementing the Environmental,Social and Governance (ESG) development concept. In 2021,CICC continued to enhance its philosophy of ESG management and improve its top-level design. The Company is dedicated to incorporating the ESG management into all aspects of its operation and management,ranging from promoting low-carbon development and environmental protection,innovation-driven growth,to employee development and serving the society. Depending on its unique professional capabilities,CICC brought into full play the role of the financial industry in optimizing resource allocation. The Company worked with ChinaBond Pricing Center to jointly launch the first rural revitalization bond index in the market. Financial empowerment has been made possible through the issuance of special bonds for rural revitalization and special financial bonds for "agriculture,rural areas and farmers",which injected new vigor and vitality into the development of local areas. As of the end of 2021,CICC issued domestic green bonds as the underwriter with a cumulative amount (on all basis) of over RMB120 billion,and issued green themed funds with a total amount of approximately RMB15 billion. In 2021,CICC actively factored ESG elements into the decision-making process of relevant businesses and investments. The Company has also established a ESG business development plan and product layout that integrates "passive index,index enhancement,and active management",so as to implement the concept of sustainable investment with market-based approaches.

Meanwhile,CICC continued to "teach people the skills" and "provide necessary assistance" to underdeveloped areas in China using its professional capabilities,and conducted field research on "Rural Revitalization in the Digital Age". The Company is committed to serving national development and strategies,and upholds the culture concept of "By the People and For the Nation". Furthermore,the Company has been actively involved in social welfare programs to help implement 25 new public welfare projects,with its public welfare activities' footprints covering 12 cities and provinces across the country. The Company took practical actions to help China achieve the carbon peaking and neutrality goals,and contributed to green development. The Company has cooperated with China Green Carbon Foundation in carrying out ecological protection and restoration projects. By promoting coworking,green travel,low-carbon travel,and the "Zero Plastic Waste" initiative,CICC hopes to help China achieve its carbon peaking and neutrality goals.

Outlook

We firmly believe that the global trend of being optimistic about China's future growth and investing in China will remain unchanged. Going forward,CICC will maintain its strategic focus,and invest for the future. As people are always the most valuable assets,CICC will continue to regard "people and culture" as the central parts of building a century-old company,and further integrate people and culture so as to maximize the engagement and creativity of its employees,who can follow strategies and principles while remaining dynamic and innovative. The new round of deepening reform and opening up of China's economy and capital markets will provide key opportunities for the Company. By offering higher-quality products and comprehensive supporting services for customers,the Company will concentrate all efforts to overcome difficulties,enabling the businesses of CICC to go fast and go far.

Note: Net assets refer to total equity attributable to shareholders of the parent company. Net profit refers to net profit attributable to shareholders of the parent company.

China International Capital Corporation Limited (CICC)

China International Capital Corporation Limited (CICC,3908.HK),as the first joint-venture investment bank in China,provides comprehensive one-stop investment banking services for domestic and overseas companies,institutions and individuals. Since its inception in 1995,CICC has adhered to the core values of "by the people and for the nation,professionalism and diligence,innovation and entrepreneurship,client first,and integrity",and is committed to making itself a first-class international investment bank based in China and a critical player in the future financial system. CICC is qualified for both domestic and overseas securities business operations,having set up a broad range of international business network. Headquartered in Beijing,CICC has set up a number of branch companies and subsidiaries in the Chinese Mainland,owned more than 200 securities branches in 30 provinces,municipalities and autonomous regions in China,and established offices in a series of international financial hubs including Hong Kong SAR,San Francisco,Tokyo etc.,which enables CICC to provide one-stop domestic,overseas,and cross-border financial services. CICC has a comprehensive and balanced business structure including investment banking,FICC,asset management,private equity investment,wealth management and research.

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