Established officially in Beijing on January 12, 1996, China Minsheng Banking Corp., Ltd. (“CMBC”) is the first national joint-stock commercial bank primarily held by non-public-owned enterprises, also a standard joint-stock financial enterprise founded strictly according to the Company Law and the Commercial Bank Law. The involvement of diversified economic sectors in China’s finance industry and the establishment of modern enterprise system distinguish CMBC from those state-owned banks and other commercial banks, and attract the eyeballs of domestic and foreign economic circle and finance circle. Over the past 12 years since its establishment, CMBC has achieved a rapid growth in both businesses and scale, and maintained good asset quality. Its profits have increased year after year.

On December 19, 2000, A shares of CMBC (600016) were listed at Shanghai Stock Exchange, where CMBC issued convertible corporate bonds of RMB 4 billion on March 18, 2003. On November 8 of the next year, CMBC, through the inter-bank bond market, offered subordinated bonds of RMB 5.8 billion successfully, and became the first commercial bank in China that issued subordinated bonds by private placement at the national inter-bank bond market. On October 26, 2005, the Bank accomplished the share-trading reform, became the first commercial bank completing the share-trading reform, which provided a successful model for the share-trading reform in Chinese capital market.

CMBC, since its listing, has conducted valuable exploration in reform, development and management by adhering to the management philosophy of “unity and striving, exploration and innovation, cultivation of talents; strict management, regulated operation, career dedication, law abidance; quality oriented, efficiency improvement and healthy development”, launched a series of system innovations successively, such as the “integrated” scientific platform, two-rate performance appraisal mechanism, three-card program, independent appraisal system, eight basic management systems, business model of centralized processing, and the reform of divisional system, and realized the strategic objectives of low risk, rapid growth and high profits, also built up an energetic and brand-new image of a commercial bank.

As at June 30, 2008, CMBC had total assets of RMB 1,062.2 billion, net profit of RMB 6.046 billion, total deposits of RMB 760.404 billion, total loans (including discount) of RMB 612.051 billion, and non-performing loan ratio of 1.21%, maintaining a leading position in China.

Till June 30, 2008, CMBC had set up 24 branches in Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, Dalian, Nanjing, Hangzhou, Taiyuan, Shijiazhuang, Chongqing, Xi’an, Fuzhou, Jinan, Ningbo, Chengdu, Tianjin, Kunming, Suzhou, Qingdao, Wenzhou, Xiamen, Quanzhou and Zhengzhou, one branch directly under CMBC in Shantou, and one representative office in Hong Kong, totaling 346 establishments.

The rapid development of CMBC has attracted the attention and acknowledgement of the public and the circle in China. In 2004, CMBC ranked No.18 in the selection of “China’s Most Dynamic Enterprises”, and obtained the title of “2004 Top 100 Most Dynamic Chinese Enterprises”; ranked No.22 in the 2005 Top 500 Chinese Enterprises in IT Competitiveness; in the “Financial and Economic Honors 2005”, it was awarded the title of “2005 Best Online Bank”; and ranked No.1 among the “2006 Top 100 Listed Private Enterprises” in terms of market value and social contribution; in November 2007, CMBC was honored as the Ten-Best Chinese-Funded Banks in the 2007 CBN List of Financial Brand Value, and achieved the award of “Best Trade Finance Bank” selected by institutions like 21st Century Business Herald; in December 2007, the “Extraordinary Wealth Management” business of CMBC obtained the “Award for Excellent Innovations in China’s Banking Industry” and the “Best Personal Wealth Management Brand in China’s Banking Industry”; and the “4th Gold Round Table Awards for the Boards of Directors of Chinese Listed Companies” in April 2008.

Besides, CMBC is becoming increasingly well-known in the world. In 2005, the world authoritative financial magazine—The Banker (Britain) publicized that CMBC ranked No.28 in terms of total assets among the 200 Asian banks. In the “2006 Top 10 Chinese Enterprises” selected by the famous American financial magazine Forbes, CMBC ranked No.7. In December 2007, CMBC won honors in the third “Top 50 Largest Listed Enterprises in Asia Pacific Region” organized by Forbes. It ranked No.2 in terms of comprehensive competitiveness in the Report on the Competitiveness of China’s Commercial Banks 2008, where it ranked No.1 in terms of corporate governance and process-oriented bank.

Over the past 10 years, all employees of CMBC have rewarded the society continuously with the grateful hearts. In particular in recent years, Minsheng people have become increasingly dedicated to social public welfares and social responsibility, and acquired the extensive attention and highly acknowledgement of both the public and media. In October 2005, CMBC participated in the large-scale public welfare program named “China Poverty Reduction” held by China Foundation for Poverty Alleviation, and donated RMB 31 million to set up the “Fund of CMBC for Poverty Reduction through Education”. This donation, till now, is the biggest public welfare donation contributed by private enterprises; in 2006, CMBC contributed RMB 14.50 million to advertise poverty-stricken counties in China at CCTV for the purpose of exhibiting their local products, natural and cultural landscapes to nationwide audiences. Also in the same year, CMBC won the “2005 Contribution Award for Poverty Reduction” and the title of “Most Respected Enterprises in China” and the award of Top 100 Excellent Enterprises in China’s enterprise social responsibility survey; in March 2007, it was nominated to the “2006 China Charity Award”, and obtained the “2007 Special Award for China Poverty Reduction” issued by China Foundation for Poverty Alleviation in 2008. In October 2007, CMBC passed the SA 8000 accreditation (namely, corporate social responsibility management system) issued by the international organization SAI, and became the first commercial bank passing this accreditation in China’s financial circle.

In February 2007, the board of directors of CMBC deliberated and passed the Five-year Development Program of China Minsheng Banking Corp., Ltd. The promulgation of the development program symbolized the market re-positioning and strategic transformation of CMBC after decades of rapid development, and depicted the development vision, business indicators, and the way of implementation for the coming 3-5 years systematically and comprehensively for the first time. In 2008, the Bank will further perfect the reform in the Department of Corporate Finance, and maintain the stable growth in business transformation, boost the retail banking reform, set up the business profit pattern with branch characteristics, guarantee the sustained rapid development of branches after the reform of divisional system; promote the construction of a process-oriented bank, accelerate the establishment of a core banking system; build up a comprehensive risk control system to cope with risks forwardly; quicken the product innovation, and advance the diversification and internationalization actively.