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Announcement on Resolutions Made on the Third Interim Meeting of the Fourth Board of Directors of China Minsheng Banking Corp.,Ltd.

2007-10-8

 

The total investment for completing the former two steps is around RMB 2.5 billion; when completing the third step, if the accumulated investment amount exceeds the decision-making power limit of the board stipulated by the corporate charter, the investment for the third step will be submitted to the Shareholders’ Meeting for approval. And the agreement articles concerning the investment for the third step of this project will also become effective after approved by the Shareholders’ Meeting.

After the investment agreement between our corporation and UCBH becomes effective, we carry out multi-directional strategic cooperation, including business cooperation and exchange directors, and our corporation will have the right to appoint senior non-executive management personnel to enter into UCBH.

The board authorized the business operations to handle the affairs related to the investment of this time, including but not limited to signing formal investment agreement, contract, charter and other legal documents, hiring intermediary organization, reporting to domestic and international regulatory authorities, executing program including selecting directors and senior managers to work with UCBH, and other affairs.

The above-mentioned investment program must be reported the domestic regulatory entities including China Banking Regulatory Commission and relevant regulatory entities of USA for approval.

The voting result is: 17 for, 1 against, and 0 abstaining. Director Su Qingzan is against the proposal due to the following reason: according to financial due diligence investigation, the existing business of the target bank is highly concentrated on real estate mortgage and construction loans, and the percentage of trade financing is relatively lower. This is inconsistent with the strategic development orientation of CMBC; and as a financial investment, the article on the locking period is unreasonable.

(Concerning the above-mentioned investments, please refer to the overseas investment announcement of our corporation that is published on the “China Securities”, “Shanghai Securities” and the website of Shanghai Securities Exchange. The investor are supposed to pay attention to risks.)

III. Resolution on Disposing the Loan Assets of 999 Group

The meeting decided to pass the proposal and agreed the loan asset disposal program as follows:
The loan asset disposal involves a total amount of RMB 269.13 million, and the compensated amount is RMB 190.56 million, and the compensation ratio is 70.81%. And we have prepared and withdrawn bad debt reserve RMB 215.3007 million yuan, according to the above compensation ratio, it is expected that RMB 152.4480 million yuan of bad debt reserve will be given back.

According to the “999 Group Debt Restructuring Agreement”, our corporation will fulfill the following obligations:

1. Exempt a total of 78.57 million yuan of uncompensated principal balance of the loans of 999 Group, and all interests and punitive interests, and the actual exempted debt amount is subject to the amount on the account processing date. This part of exempted loan principal and interests will be processed as bad debt, and according to approval from the State Council and the Ministry of Finance on the restructuring program, we can make pretax deduction.

 

 

 

 

 

 

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