PegBio Co., Ltd. — Interim / Quarterly Report 2021

Aug 30, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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CMBC CAPITAL HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 1141)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021

The board (the “ Board ”) of directors (the “ Directors ”) of CMBC Capital Holdings Limited (the “ Company ”) is pleased to announce the condensed consolidated results of the Company and its subsidiaries (collectively referred to as the “ Group ”) for the six months ended 30 June 2021 (the “ Reporting Period ”) together with comparative figures for the six months ended 30 June 2020 (the “ Previous Period ”) as follows:

– 1 –

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2021

Notes Revenue 4 Net gains on financial assets at fair value through profit or loss (“FVTPL”) Net losses on financial assets at fair value through other comprehensive income (“FVOCI”) Net gains on financial assets at amortised cost Other income 5 Other gains and losses 6 Impairment losses 7 Staff costs Depreciation and amortisation Other operating expenses Finance costs 8 Profit before taxation 9 Taxation 10 Profit for the period attributable to owners of the Company Earnings per share attributable to owners of the Company (HK cents) 11 – Basic – Diluted

Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 461,012 501,578 77,208 48,204 (106,221) (9,075) 76 – 6,648 7,483 11 (3,815) (34,768) (107,689) (38,552) (33,553) (13,875) (13,856) (25,852) (25,942) (91,879) (163,167) 233,808 200,168 (32,619) (34,718) 201,189 165,450 0.42 0.35 0.42 0.35

– 2 –

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2021

Profit for the period attributable to owners of the Company Other comprehensive income/(loss) Item that will not be reclassified to profit or loss: – Equity investments at fair value through other comprehensive income – net movement in fair value reserve (non-recycling) Item that may be reclassified subsequently to profit or loss: – Financial assets at fair value through other comprehensive income – net movement in fair value reserve (recycling) Other comprehensive income/(loss) for the period, net of tax Total comprehensive income for the period attributable to owners of the Company

Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 (Unaudited) (Unaudited) 201,189 165,450 9,202 (34,241) 93,346 (83,631) 102,548 (117,872) 303,737 47,578

– 3 –

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2021

Notes Non-current assets Property, plant and equipment Right-of-use asset Goodwill Intangible assets Loans and advances 13 Financial assets at amortised cost 15 Deferred tax assets Other assets Current assets Accounts receivable 14 Prepayments, deposits and other receivables Interest receivable Amount due from an intermediate holding company Loans and advances 13 Financial assets at fair value through other comprehensive income 16 Financial assets at fair value through profit or loss 17 Cash held on behalf of customers Cash and cash equivalents	As at 30 June 2021 HK$’000 (Unaudited) 8,305 81,749 16,391 1,417 77,821 61,906 2,052 10,505 260,146 1,496,266 244,219 165,478 12,269 696,413 8,137,320 2,318,683 230,454 941,100 14,242,202	As at 31 December 2020 HK$’000 (Audited) 9,418 93,428 16,391 2,103 – 77,272 1,383 10,138 210,133 502,816 35,339 119,836 – 1,485,217 6,835,510 1,240,808 357,370 378,170 10,955,066

– 4 –

Notes Current liabilities Accounts payable 18 Other payables and accruals Amount due to an intermediate holding company Loans from an intermediate holding company 19 Notes payable 20 Financial assets sold under repurchase agreements 21 Financial liabilities at fair value through profit or loss 22 Lease liabilities Dividend payable Tax payable Net current assets Total assets less current liabilities Non-current liabilities Lease liabilities Deferred tax liabilities Net assets Capital and reserves Share capital 23 Reserves Total equity	As at 30 June 2021 HK$’000 (Unaudited) 268,089 276,659 – 4,270,438 1,403,126 5,190,368 345 27,388 157,001 48,563 11,641,977 2,600,225 2,860,371 57,426 64,583 122,009 2,738,362 475,537 2,262,825 2,738,362	As at 31 December 2020 HK$’000 (Audited) 359,441 83,147 5,927 4,446,443 – 3,390,747 93,922 27,388 – 20,831 8,427,846 2,527,220 2,737,353 66,670 70,715 137,385 2,599,968 476,279 2,123,689 2,599,968

– 5 –

NOTES:

1 BASIS OF PREPARATION

This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) including compliance with Hong Kong Accounting Standard (“ HKAS ”) 34, Interim Financial Reporting, issued by the Hong Kong Institute of Certified Public Accountants (“ HKICPA ”). They were authorised for issue on 30 August 2021.

This interim financial report has been prepared in accordance with the same accounting policies adopted in 2020 annual financial statements.

The preparation of the condensed consolidated financial statements in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates.

2 CHANGES IN ACCOUNTING POLICIES

A number of new or amended standards became applicable for the current reporting period, and the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

The following amendments to accounting standards are applicable for annual reporting periods commencing on or after 1 January 2021:

• Covid-19-related Rent Concessions – amendments to HKFRS 16

• Interest Rate Benchmark Reform – Phase 2 – amendments to HKFRS 9, HKAS 39, HKFRS 7, HKFRS 4 and HKFRS 16

None of these is expected to have a significant effect on the condensed consolidated financial statements of the Group.

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3 SEGMENT INFORMATION

In a manner consistent with the way in which information is reported internally to the Group’s management, being the chief operating decision makers, for the purpose of resources allocation and assessment of segment performance focusing on types of services provided. “Investment and Financing”, which was previously presented in the 2020 condensed consolidated financial statements, has been presented as two segments “Fixed-income direct investment” and “Other Investment and financing” in 2020 annual financial statements. Therefore, the comparatives have been re-presented accordingly to align with the Group’s current internal reporting information.

• the “securities” segment representing the business line of provision of brokerage services, securities margin financing services to clients and securities underwriting/placing;

• the “fixed-income direct investment” segment representing direct investment and trading activities in fixed-income securities;

• the “other investment and financing” segment representing investment and trading activities in equity securities, bonds and funds other than direct investment and trading activities in fixed-income securities, and provision of loan financing services;

• the “asset management” segment representing provision of asset management services to clients;

• the “corporate finance and advisory” segment representing provision of sponsorship, financial advisory and financial arrangement services to clients; and

• the “Others” segment primarily includes head office operations as well as interest income and interest expense incurred for generating working capital for general operations.

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Disaggregation of revenue

Disaggregation of revenue from contracts with customers by service lines is as follows:

Revenue from contracts with customers within the scope of HKFRS 15 Disaggregated by service lines – Commission income from brokerage and related services – Commission income from underwriting, sub-underwriting, placing and sub-placing – Financial advisory, sponsorship, arrangement fee and other service income – Asset management fee, investment advisory services fee and performance fee income Revenue from other sources Loan and financing – Interest income from provision of finance and securities margin financing Financial investments – Interest income from debt securities investments – Interest income from FVTPL investments – Dividend income and other investment income

Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 4,422 365 39,439 17,052 23,807 14,483 69,587 62,226 137,255 94,126 79,365 119,490 150,942 237,962 17,144 8,125 76,306 41,875 244,392 287,962 461,012 501,578

The Group’s revenue from continuing operation from external customers are located in Hong Kong.

– 8 –

Disaggregation of revenue is set out below:

For the six months ended Revenue from contracts with customers within the scope of HKFRS 15 Revenue from other sources Loan and financing – Interest income from provision of finance and securities margin financing Financial investments – Interest income from debt securities investments – Interest income from FVTPL investments – Dividend income and other investment income Reportable segment revenue	Securities 30 June 2021 30 June 2020 HK$’000 HK$’000 39,871 8,099 25,440 25,565 – – – – – – – – 65,311 33,664	Fixed-income direct investment 30 June 2021 30 June 2020 (Re-presented) HK$’000 HK$’000 – – – – 150,942 237,962 22 – 58,826 37,668 209,790 275,630 209,790 275,630	Other investment and financing 30 June 2021 30 June 2020 (Re-presented) HK$’000 HK$’000 – – 53,925 93,925 – – 17,122 8,125 17,480 4,207 34,602 12,332 88,527 106,257	Asset management 30 June 2021 30 June 2020 HK$’000 HK$’000 69,587 62,226 – – – – – – – – – – 69,587 62,226	Corporate finance and advisory 30 June 2021 30 June 2020 HK$’000 HK$’000 27,797 23,801 – – – – – – – – – – 27,797 23,801	Total 30 June 2021 30 June 2020 HK$’000 HK$’000 137,255 94,126 79,365 119,490 150,942 237,962 17,144 8,125 76,306 41,875 244,392 287,962 461,012 501,578	Total 30 June 2021 30 June 2020 HK$’000 HK$’000 137,255 94,126 79,365 119,490 150,942 237,962 17,144 8,125 76,306 41,875 244,392 287,962 461,012 501,578
							287,962
							501,578

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Segment revenue and results

The following is an analysis of the Group’s revenue and results by reportable segments:

Segment revenue and investment gains/(losses) – Reportable segment revenue – Net gains on financial assets at fair value through profit or loss – Net losses on financial assets at fair value through other comprehensive income – Net gains on financial assets at amortised cost Other income Other gains and losses Segment expenses Segment results Segment revenue and investment gains/(losses) – Reportable segment revenue – Net gains on financial assets at fair value through profit or loss – Net losses on financial assets at fair value through other comprehensive income Other income Other gains and losses Segment expenses Segment results	Six months ended 30 June 2021 Securities Fixed-income direct investment Other investment and financing Asset management Corporate finance and advisory HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 65,311 209,790 88,527 69,587 27,797 – 18,882 58,326 – – – (106,221) – – – – 76 – – – 65,311 122,527 146,853 69,587 27,797 1,880 12 – 40 256 307 (5,852) 1,299 93 – (25,562) (83,278) (58,085) (14,300) (13,467) 41,936 33,409 90,067 55,420 14,586 Six months ended 30 June 2020 Securities Fixed-income direct investment Other investment and financing Asset management Corporate finance and advisory (Re- presented) (Re- presented) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 33,664 275,630 106,257 62,226 23,801 – 896 47,308 – – – (9,075) – – – 33,664 267,451 153,565 62,226 23,801 1,523 178 13 456 633 (1,460) 9,110 (874) (328) 115 (15,412) (229,544) (49,210) (19,440) (14,699) 18,315 47,195 103,494 42,914 9,850	Others HK$’000 – – – – – 4,460 4,164 (10,234) (1,610) Others HK$’000 – – – – 4,680 (10,378) (15,902) (21,600)	Total HK$’000 461,012 77,208 (106,221) 76
			432,075 6,648 11 (204,926)
			233,808
			Total HK$’000 501,578 48,204 (9,075)
			540,707 7,483 (3,815) (344,207)
			200,168

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Segment assets and liabilities

Assets Segment assets Liabilities Segment liabilities Assets Segment assets Liabilities Segment liabilities	As at 30 June 2021 Securities Fixed-income direct investment Other investment and financing Asset management Corporate finance and advisory HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 2,031,539 8,581,677 3,631,172 69,490 25,970 1,640,331 7,015,461 2,803,279 21,239 – As at 31 December 2020 Securities Fixed-income direct investment Other investment and financing Asset management Corporate finance and advisory HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 985,583 6,955,357 2,947,028 48,656 26,750 776,097 6,383,045 1,236,604 14,106 –	Others Total HK$’000 HK$’000 162,500 14,502,348 283,676 11,763,986 Others Total HK$’000 HK$’000 201,825 11,165,199 155,379 8,565,231	Total HK$’000 14,502,348
			11,763,986
			8,565,231

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4 REVENUE

Commission income from brokerage and related services Commission income from underwriting, sub-underwriting, placing and sub-placing Interest income from debt securities investments Interest income from FVTPL investments Interest income from provision of finance and securities margin financing Dividend income and other investment income Financial advisory, sponsorship, arrangement fee and other service income Asset management fee, investment advisory services fee and performance fee income	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 4,422 365 39,439 17,052 150,942 237,962 17,144 8,125 79,365 119,490 76,306 41,875 23,807 14,483 69,587 62,226 461,012 501,578	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 4,422 365 39,439 17,052 150,942 237,962 17,144 8,125 79,365 119,490 76,306 41,875 23,807 14,483 69,587 62,226 461,012 501,578
		501,578

5 OTHER INCOME

Bank interest income Office sharing fee income Other income	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 33 1,065 4,440 4,440 2,175 1,978 6,648 7,483	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 33 1,065 4,440 4,440 2,175 1,978 6,648 7,483
		7,483

6 OTHER GAINS AND LOSSES

Net exchange gain/(loss)	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 11 (3,815 11 (3,815	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 11 (3,815 11 (3,815
		(3,815

– 12 –

7 IMPAIRMENT LOSSES

Impairment losses – Loans and advances_(Note 13) – Accounts receivable(Note 14) – Financial assets at fair value through other comprehensive income(Note 16) – Financial assets at amortised cost (Note 15)_ 8 FINANCE COSTS Interest expense on: Margin loan Notes payable Bank borrowings Loans from an intermediate holding company Financial assets sold under repurchase agreements Lease liabilities 9 PROFIT BEFORE TAXATION The Group’s profit before taxation is arrived at after charging: Depreciation of property, plant and equipment Depreciation of right-of-use asset Amortisation of intangible assets

Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 21,391 6,813 503 1,555 12,861 64,352 13 34,969 34,768 107,689 Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 – 4 5,189 1,521 551 – 65,610 118,986 18,361 39,992 2,168 2,664 91,879 163,167 Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 1,510 1,491 11,679 11,679 686 686

– 13 –

10 TAXATION

Current period – Hong Kong Profits Tax Deferred tax credited/(provided) for the period	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 (39,420) (17,376) 6,801 (17,342) (32,619) (34,718)	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 (39,420) (17,376) 6,801 (17,342) (32,619) (34,718)
		(34,718)

Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profit for both periods.

11 EARNINGS PER SHARE

The calculation of basic and diluted earnings per share attributable to owners of the Company is based on the following data:

Earnings Profit attributable to owners of the Company for the purpose of basic and diluted earnings per share Number of shares Weighted average number of ordinary shares for the purpose of basic and diluted earnings per share	Six months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 201,189 165,450 Six months ended 30 June 2021 30 June 2020 ’000 ’000 47,601,858 47,673,449

The denominators used are the same as those detailed above for the basic and diluted earnings per share.

– 14 –

12 DIVIDENDS

The Board of Directors does not recommend the payment of interim dividend for the six months ended 30 June 2021 (30 June 2020: Nil).

The final dividend of HK0.33 cents per share (2019: HK0.33 cents per share) for the year ended 31 December 2020 had been approved by the shareholders of the Company on 29 June 2021 and was paid on 30 July 2021 in an aggregated amount of approximately HK$157,001,000 (For the year ended 31 December 2019: approximately HK$157,272,000).

13 LOANS AND ADVANCES

Loans and advances Less: Allowance for expected credit losses Less: Amount due within one year shown under current assets Amount shown under non-current assets Loans and advances (non-current) Less: Allowance for expected credit losses Loans and advances (current) Less: Allowance for expected credit losses	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 785,671 1,492,193 (11,437) (6,976) 774,234 1,485,217 (696,413) (1,485,217) 77,821 – 77,882 – (61) – 77,821 – 707,789 1,492,193 (11,376) (6,976) 696,413 1,485,217

At 30 June 2021, loans and advances included loans to independent third parties with effective interest rates ranging from 6% to 13% (31 December 2020: 5% to 13%) per annum. Certain loans and advances were secured and/or backed by guarantees or collaterals. Regular reviews on these loans are conducted by the risk management department based on the latest status of these loans, and the latest available information about the borrowers and the underlying collaterals held.

During the period ended 30 June 2021, allowance for expected credit losses of HK$21,391,000 was recognised (for the six months ended 30 June 2020: HK$6,813,000) in the condensed consolidated statement of profit or loss.

– 15 –

14 ACCOUNTS RECEIVABLE

Accounts receivable arising from the ordinary course of business of securities brokerage, futures and options dealing services: – Clearing houses – Cash clients – Margin clients – Clients for subscription of new shares in IPO Accounts receivable arising from the ordinary course of business of securities underwriting Accounts receivable arising from the ordinary course of business of advisory services Less: Allowance for expected credit losses

As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 111 2,828 15,748 2 403,138 480,286 1,060,894 – 1,479,891 483,116 9,826 12,639 9,666 9,675 1,499,383 505,430 (3,117) (2,614) 1,496,266 502,816

Accounts receivable arising from the business of dealing in securities

The normal settlement terms of accounts receivable from clients and clearing houses, except for accounts receivable due from margin clients, arising from the ordinary course of business of securities brokerage services are two trading days after the trade date. No ageing analysis is disclosed as, in the opinion of directors of the Company, an ageing analysis does not give additional value in view of the nature of this business.

Accounts receivable due from margin clients are repayable on demand and carry interest at 5% to 18% per annum during the six months ended 30 June 2021 (during the year ended 31 December 2020: accounts receivable due from margin clients are repayable on demand and carry interest at 5.25% to 18% per annum). The fair value of the pledged securities as at 30 June 2021 is approximately HK$617,737,000 (31 December 2020: HK$797,944,000).

During the period ended 30 June 2021, allowance for expected credit losses of HK$503,000 was recognised (for the six months ended 30 June 2020: HK$1,555,000) in the condensed consolidated statement of profit or loss.

Accounts receivable from clients arising from financing of IPO subscriptions are required to settle their securities trading balances on the allotment date determined under the relevant market practices or exchange rules. As at 30 June 2021, the settlement dates are in the range of 2 to 7 days.

– 16 –

As at 30 June 2021, the Group has concentration risk on its accounts receivable as the balance with the largest client represent 34% (31 December 2020: 41%) of the total accounts receivable from cash clients, margin clients and clients for subscription of new shares in IPO. The Group has no other significant concentration risk.

Accounts receivable arising from the businesses of securities underwriting and advisory services

Ageing of accounts receivable arising from the ordinary course of businesses of securities underwriting and advisory services, based on the due date, is as follows:

Neither past due nor impaired 31 – 60 days past due 61 – 90 days past due Over 90 days past due Allowance for expected credit losses Total	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 10,680 11,458 3,985 8,126 2,000 2,559 2,827 171 19,492 22,314 – – 19,492 22,314

The Group applies HKFRS 9 simplified approach to measure the expected credit losses for accounts receivable arising from the business of securities underwriting and advisory services. The management assessed the loss allowance was insignificant. The directors have assessed and considered that there is no recoverability issue.

15 FINANCIAL ASSETS AT AMORTISED COST

Listed debt investments Less: Allowance for expected credit losses	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 62,130 77,536 (224) (264) 61,906 77,272

The above amount is due more than one year and shown under non-current assets.

During the period ended 30 June 2021, allowance for expected credit losses of HK$13,000 (for the six months ended 30 June 2020: HK$34,969,000) was recognised in the condensed consolidated statement of profit or loss.

– 17 –

16 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Listed debt investments, at fair value_(Note)_ Listed equity instruments, at fair value	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 5,086,190 5,173,757 3,051,130 1,661,753 8,137,320 6,835,510

Note : The Group has further recognised expected credit losses amounted to HK$12,861,000 in the condensed consolidated statement of profit or loss during the period (for the six months ended 30 June 2020: HK$64,352,000). As at 30 June 2021, allowance for expected credit losses amounted HK$42,453,000 (31 December 2020: HK$94,597,000) has been included in fair value reserve (recycling).

17 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Listed equity investments Unlisted equity investments Listed debt investments Unlisted investment funds Derivative financial instrument – credit derivative	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 208,620 – 302,769 230,715 966,164 241,417 841,130 700,113 – 68,563 2,318,683 1,240,808

The fair values of the listed equity investments and listed debt investments were determined based on the quoted market prices.

As at 31 December 2020, the credit derivative was a non-qualified hedging derivative which comprises a total return swap held by the Group with notional value amounted to approximately HK$187.3 million. During the period ended 30 June 2021, the credit derivative was unwound.

– 18 –

18 ACCOUNTS PAYABLE

Accounts payable arising from the ordinary course of business of securities brokerage, futures and options dealing services: – Cash clients – Margin clients – Clearing houses – Brokers	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 133,234 221,936 18,608 54,537 52 82,968 116,195 – 268,089 359,441

Accounts payable arising from the business of dealing in securities

The accounts payable balances arising from the ordinary course of business of securities brokerage services are normally settled in two trading days after the trade date except for the money held on behalf of clients at the segregated bank accounts which are repayable on demand. No ageing analysis is disclosed as, in the opinion of directors of the Company, an ageing analysis does not give additional value in view of the nature of this business.

19 LOANS FROM AN INTERMEDIATE HOLDING COMPANY

Loans from an intermediate holding company The carrying amounts of the above borrowings are repayable: Within one year	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 4,270,438 4,446,443 4,270,438 4,446,443

As at 30 June 2021, the Group had loans amounting to approximately HK$4,102,445,000 (31 December 2020: HK$4,344,207,000) from CMBC International Holdings Limited, an intermediate holding company and interest payable amounting to approximately HK$167,993,000 (31 December 2020: HK$102,236,000). The loans bear interests at 3.5% per annum (31 December 2020: 4% per annum) and are repayable within one year (31 December 2020: within one year).

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20 NOTES PAYABLE

In 2013, the Company issued notes in the aggregate principal amount of HK$50,000,000 to independent third parties. The notes carry interest at 5% per annum and are to be redeemed on the seventh anniversary from the respective issue dates of the notes. During the year ended 31 December 2020, the note principal of HK$50,000,000 was fully repaid.

During the period ended 30 June 2021, the Company issued notes in the aggregate principal amount of US$180,000,000 to independent third parties. The notes carry variable interest at 1% to 1.8% per annum and are to be redeemed within one year.

As at 30 June 2021, the aggregate principal amount of the notes payable was US$180,000,000 (31 December 2020: Nil).

The movement of the notes payable for the period ended 30 June 2021 and for the year ended 31 December 2020 are set out below:

At the beginning of the period/year Issuance of notes Interest charged Repayment of note principal Interest payable Exchange realignment At the end of the period/year The carrying amounts of the above borrowings are repayable: Within one year	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 – 50,000 1,395,867 – 5,189 2,781 – (50,000) – (2,781) 2,070 – 1,403,126 – 1,403,126 –

– 20 –

21 FINANCIAL ASSETS SOLD UNDER REPURCHASE AGREEMENTS

		As at	As at
	30	June 2021	31 December 2020
		HK$’000	HK$’000
Bonds		5,190,368	3,390,747

As at 30 June 2021, the Group entered into repurchase agreements with financial institutions to sell bonds recognised as financial assets at fair value through other comprehensive income and financial assets at amortised cost with aggregate carrying amount of approximately HK$6,859,456,000 (31 December 2020: approximately HK$4,535,946,000), which are subject to the simultaneous agreements to repurchase these investments at the agreed dates and prices.

Sales and repurchase agreements are transactions in which the Group sells bonds and simultaneously agrees to repurchase them (or assets that are substantially the same) at the agreed dates and prices. The repurchase prices are fixed and the Group is still exposed to substantially all the credit risks, market risks and rewards of those bonds sold. The bonds are not derecognised from the condensed consolidated financial statements but regarded as “collaterals” for the liabilities because the Group retains substantially all the risks and rewards of the bonds.

22 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Payables to interest holder of unlisted consolidated investment fund, designated at FVTPL Derivative financial instrument – credit derivative	As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 345 – – 93,922 345 93,922

As at 30 June 2021, the Company held 60% (31 December 2020: 60%) interest of CMBCC Co-High Medical Investment Fund SP (the “ Medical Fund ”). As the Group has control over the Medical Fund, it is accounted for as a subsidiary. Accordingly, the interests of the non-controlling shareholder are classified as financial liabilities designated as at fair value through profit or loss of approximately HK$345,000 as at 30 June 2021 (31 December 2020: Nil).

As at 31 December 2020, the credit derivative was a non-qualified hedging derivative which comprises a total return swap held by the Group with notional value amounted to approximately HK$187.7 million. During the period ended 30 June 2021, the credit derivative was unwound.

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23 SHARE CAPITAL

Note Authorised: Ordinary shares of HK$0.01 each Issued and fully paid: At the beginning of the period/year Cancellation for shares repurchased (i) At the end of the period/year	Number As at 30 June 2021 ’000 100,000,000 47,627,928 (74,210) 47,553,718	of shares As at 31 December 2020 ’000 100,000,000 47,679,218 (51,290) 47,627,928	Amount As at 30 June 2021 As at 31 December 2020 HK$’000 HK$’000 1,000,000 1,000,000 476,279 476,792 (742) (513) 475,537 476,279

Note :

• (i) During the period ended 30 June 2021, the Company repurchased an aggregate of 79,930,000 ordinary shares of the Company on market at prices ranging from HK$0.095 to HK$0.129 per share at a total consideration of approximately HK$8,342,000 (before transaction costs). Of these repurchased shares, 71,030,000 shares were cancelled prior to period ended 30 June 2021. The premium of approximately HK$7,140,000 paid on the repurchase of shares was debited to share premium account. Subsequent to end of the reporting period, the remaining 8,900,000 repurchased shares were cancelled on 30 July 2021.

During the year ended 31 December 2020, the Company repurchased an aggregate of 52,530,000 ordinary shares of the Company on market at prices ranging from HK$0.112 to HK$0.17 per share at a total consideration of approximately HK$7,012,000 (before transaction costs). Of these repurchased shares, 49,350,000 shares were cancelled prior to year ended 31 December 2020. The premium of approximately HK$6,393,000 paid on the repurchase of such shares was debited to share premium account. Subsequent to end of the reporting period, the remaining 3,180,000 repurchased shares were cancelled on 29 January 2021.

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BUSINESS REVIEW

During the Reporting Period, the Group’s profit attributable to the owners of the Company increased to approximately HK$201.2 million, representing an increase of approximately 21.6% as compared to approximately HK$165.5 million in the Previous Period. The Group’s basic and diluted earnings per share were HK0.42 cents (30 June 2020: HK0.35 cents).

Revenue

The Group’s revenue decreased by approximately 8.1% to approximately HK$461.0 million during the Reporting Period, as compared to approximately HK$501.6 million in the Previous Period. The decrease was mainly due to the risk appetite adjustment and an increase in the size of highly-rated assets which led to the decrease in the interest income from investment and financing during the Reporting Period. The table below presents the breakdown of segment revenue (including net gains or losses from investment) and segment results during the Reporting Period:

Segment Revenue and Net Gains or Losses from Investment For the six months ended 30 June 2021 2020 HK$’000 HK$’000 Securities 65,311 33,664 Fixed-income direct investment 122,527 267,451 Other Investment and Financing 146,853 153,565 Asset Management 69,587 62,226 Corporate Finance and Advisory 27,797 23,801 Others – – Total 432,075 540,707	Segment Results For the six months ended 30 June 2021 2020 HK$’000 HK$’000 41,936 18,315 33,409 47,195 90,067 103,494 55,420 42,914 14,586 9,850 (1,610) (21,600) 233,808 200,168

Securities Segment

The Group’s securities business mainly includes the provision of brokerage services, securities margin financing and securities underwriting/placing business to clients.

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During the Reporting Period, the revenue and profit contributed by the securities segment increased to approximately HK$65.3 million and HK$41.9 million, respectively, compared to the revenue and profit of approximately HK$33.7 million and HK$18.3 million, respectively in the Previous Period. The increase of the segment revenue and profit was mainly due to the growth of the bond underwriting.

Investment and Financing Segment

In terms of investment, the Group is globally oriented and focuses on the Greater China region. It actively identifies enterprises with prominent core advantages and strong growth ability and profitability in the industries that are on the growth or expansion phase of the cycle, focuses on strategic industries and provides value-added services for enterprises. The Group also aims at high-tech innovative enterprises, medical and healthcare enterprises, and other enterprises that have large growth potential.

With respect to financing, the Group is committed to providing comprehensive financing solutions with different structures and forms according to customer needs, and providing transactional structural design, financing distribution and other services. The specific products include but not limited to asset-secured loans, M&A loans, convertible bond financing, equity pledge financing, and bridge financing.

During the Reporting Period, in the face of the adverse environment brought by the global economic fluctuations to industrial investments, the Group had appraised the situation constantly and made timely and reasonable adjustment to the investment and financing strategy. The Group had adapted to the changes in the market and risk environment. During the Reporting Period, the proprietary investments of the Group achieved rapid premium appreciation and maintained a sustainable and healthy growth momentum.

Fixed-income Direct Investment

During the Reporting Period, revenue and net investment losses from the fixed-income direct investment segment, which included but not limited to coupons from the listed bonds under direct investment, amounted to an aggregate of approximately HK$122.5 million as compared to approximately HK$267.5 million in the Previous Period. The segment profit decreased from approximately HK$47.2 million in the Previous Period to approximately HK$33.4 million in the Reporting Period. The decrease in segment profit was mainly attributable to risk appetite adjustment and increase in the size of highly-rated assets which led to the decrease in interest income from bond investment as well as the exchange loss incurred during the Reporting Period.

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Other Investment and Financing

During the Reporting Period, revenue and net investment gains from the other investment and financing segment, which included but not limited to coupons, dividends and distribution income from listed bonds (other than those under fixed-income direct investment), listed equities, unlisted equity interests, unlisted funds, and unlisted notes, as well as interest income from loans, amounted to an aggregate of approximately HK$146.9 million as compared to approximately HK$153.6 million in the Previous Period. The segment profit decreased from approximately HK$103.5 million in the Previous Period to approximately HK$90.1 million in the Reporting Period. The decrease in segment profit was mainly attributable to the decrease in interest income from loans and the increase in the segment expenses.

The following table sets out the breakdown of investment and financing:

Investment Listed equities Unlisted equity interests Listed bonds (measured at FVOCI) Listed bonds (measured at FVTPL) Listed bonds (measured at amortised cost) Unlisted funds Derivative financial instrument – credit derivative Total Financing Loans and advances	30 June 2021 HK$’000 208,620 302,769 8,137,320 966,164 61,906 841,130 – 10,517,909 774,234	31 December 2020 HK$’000 – 230,715 6,835,510 241,417 77,272 700,113 68,563 8,153,590 1,485,217

As at 30 June 2021, the Group’s investment portfolio mainly included but not limited to listed equity, listed bonds, unlisted equity interests and unlisted funds, covering a wide range of sectors such as industry, pharmaceuticals, technology, consumer goods, real estate and finance.

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As at 30 June 2021, the assets of the proprietary investment of the Group amounted to approximately HK$10.5 billion (31 December 2020: approximately HK$8.2 billion), including bonds investment of approximately HK$9.2 billion (31 December 2020: approximately HK$7.2 billion). During the Reporting Period, the Group’s total investment portfolio increased by approximately HK$2.3 billion, which was mainly due to the net purchase of listed bonds and listed equity. The future performance of such a portfolio will depend on many factors, including uncertainties of the financial markets, the economic development trend in both Hong Kong and Mainland China and the investors’ sentiment.

During the Reporting Period, the Group’s investment portfolio generated an income of approximately HK$244.4 million (Previous Period: HK$288.0 million) in total, including interest income of approximately HK$150.9 million (Previous Period: HK$238.0 million) from debt securities investments, interest income of approximately HK$17.1 million (Previous Period: HK$8.1 million) from FVTPL investments and dividend income and other investment income of approximately HK$76.3 million (Previous Period: HK$41.9 million).

For investments classified as financial assets measured at FVOCI and FVTPL, the Group recorded a net loss during the Reporting Period which mainly comprised: (i) net loss recognized in the condensed consolidated statement of profit or loss and other comprehensive income, and (ii) net gain not recycled through profit or loss upon disposal of financial assets measured at FVOCI.

The Group maintains a consistent robust principle for its proprietary bond investment, and adopts a revenue-based (including charging fixed contractual interest and receiving gains on disposal) trading strategy. Adopting a top-down/bottom-up approach in its investment analysis, the Group is committed to identifying investment opportunities with sustainable and high-level revenue within limited volatility. The Group adopts prudent risk management strategy and makes a reasonable risk estimate for its investments in order to strike a balance between risk management and revenue generation. At the same time, the Group adheres to the principle of diversified investment and has established explicit guidelines which stipulate that the position in any single bond shall not account for more than 5% of the overall position, and the portfolio shall be diversified by investing in various issuers in a wide range of sectors, thereby avoiding the risk of adjustment in any particular industry.

The unlisted direct investment business of the Group, including equity interests and funds, mainly focuses on high-tech innovative enterprises and medical and healthcare enterprises that have large growth potential. The unlisted direct investment projects the Group held achieved rapid premium appreciation and maintained a sustainable and healthy growth momentum during the Reporting Period.

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The loan business of the Group focuses on short-to-mid term financing so as to maintain the liquidity of the Group’s assets. During the Reporting Period, loans were granted to market players in various industries, such as finance, technology, healthcare, sports, education and real estate, which diversified the risk of the loan portfolio. The Group implements pre-, peri- and post-investment management and put in place practicable and effective risk control measures. Each client and each project are subject to rigorous risk reviews and the Group’s overall credit and operation risk are controllable. The Group constantly monitors concentration, maturity profile and risk to revenue ratio of the asset portfolio to strike a balance between the overall risk and revenue generation.

Asset Management Segment

The Group’s asset management represents the provision of asset management services to clients. The Group’s asset management segment recorded revenue of approximately HK$69.6 million during the Reporting Period as compared to approximately HK$62.2 million in the Previous Period and segment profit of approximately HK$55.4 million during the Reporting Period as compared to approximately HK$42.9 million in the Previous Period. The segment revenue and profit increased due to the increase in the asset management portfolio.

Corporate Finance and Advisory Segment

During the Reporting Period, the Group’s revenue of approximately HK$27.8 million and profit of approximately HK$14.6 million were recorded for the corporate finance and advisory segment, as compared to revenue of approximately HK$23.8 million and profit of approximately HK$9.9 million in the Previous Period. The segment revenue and profit increased due to the increase in the number of sponsor projects as compared to the Previous Period.

Administrative Expenses and Finance Costs

Administrative expenses and finance costs for the Reporting Period amounted to approximately HK$170.2 million in aggregate as compared to approximately HK$236.5 million in the Previous Period. The analysis is set out below:

Staff costs Depreciation and amortisation Other administrative expenses Finance costs Total	For the 6 months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 38,552 33,553 13,875 13,856 25,852 25,942 91,879 163,167 170,158 236,518	For the 6 months ended 30 June 2021 30 June 2020 HK$’000 HK$’000 38,552 33,553 13,875 13,856 25,852 25,942 91,879 163,167 170,158 236,518
		236,518

The increase in staff costs was mainly due to the increase in the number of staff.

The decrease in finance costs was mainly due to the decrease in loan interest rate.

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INTERIM DIVIDEND

The Board does not recommend the payment of interim dividend for the six months ended 30 June 2021 (Previous Period: Nil).

LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE

Capital Structure

As at 30 June 2021, the total number of the issued share capital with the par value of HK$0.01 each was 47,553,717,729 (31 December 2020: 47,627,927,729) and the total equity attributable to the shareholders of the Company (“ Shareholders ”) was approximately HK$2,738.4 million (31 December 2020: HK$2,600.0 million).

During the Reporting Period, the Company repurchased an aggregate of 79,930,000 shares of the Company (“ Shares ”). Of these repurchased shares, 71,030,000 shares were cancelled during the Reporting Period, and the remaining 8,900,000 repurchased shares were cancelled on 30 July 2021.

During the Reporting Period, no Shares have been purchased or granted to the selected persons of the Group under the share award scheme or no share options have been granted under the share option scheme.

Liquidity and Financial Resources

The Group primarily financed its operations with internally-generated cash flows, borrowings and Shareholder’s equity.

As at 30 June 2021, the Group had current assets of approximately HK$14,242.2 million (31 December 2020: HK$10,955.1 million) and liquid assets comprising cash (excluding cash held on behalf of clients), investment in listed equity securities and listed debt investments (other than those measured at amortised cost) totaling approximately HK$10,253.2 million (31 December 2020: HK$7,455.1 million). The Group’s current ratio, calculated based on current assets of approximately HK$14,242.2 million (31 December 2020: HK$10,955.1 million) over current liabilities of approximately HK$11,642.0 million (31 December 2020: HK$8,427.8 million), was approximately 1.2 on 30 June 2021 (31 December 2020: 1.3).

The Group’s finance costs for the Reporting Period mainly represented the interest on notes payable of approximately HK$5.2 million (Previous Period: HK$1.5 million), interest on loans from an intermediate holding company of approximately HK$65.6 million (Previous Period: HK$119.0 million), interest on financial assets sold under repurchase agreements of approximately HK$18.4 million (Previous Period: HK$40.0 million) and interest on lease liabilities of approximately HK$2.2 million (Previous Period: HK$2.7 million).

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As at 30 June 2021, the Group’s indebtedness comprised loans from an intermediate holding company, notes payable and financial assets sold under repurchase agreements of approximately HK$10,690.7 million (31 December 2020: HK$7,735.0 million). The loans principal from an intermediate holding company of approximately HK$4,102.4 million (31 December 2020: HK$4,344.2 million) were denominated in Hong Kong dollars and United States dollars and borne interests at 3.5% per annum (2020: 4% per annum) and were repayable within one year. The notes payable in the aggregate principal amount of US$180.0 million (31 December 2020: Nil) were denominated in the United States dollars, due one year from the respective issue dates of the notes, and borne interest at 1% to 1.8% per annum.

The Group’s gearing ratio, calculated on the basis of total indebtedness divided by the sum of total indebtedness and equity attributable to the Company’s owners, was approximately 79.6% (31 December 2020: 74.8%).

With the amount of liquid assets on hand, the management is of the view that the Group has sufficient financial resources to meet its ongoing operational requirements.

PLEDGE OF ASSETS

Except as otherwise disclosed, as at 30 June 2021, the Group had no other pledge or charge on assets (31 December 2020: Nil).

CONTINGENT LIABILITY

As at 30 June 2021, the Group had no significant contingent liability (31 December 2020: Nil).

CAPITAL COMMITMENT

As at 30 June 2021, the Group had no significant capital commitment (31 December 2020: Nil).

SIGNIFICANT INVESTMENTS HELD

For the Reporting Period, the Group did not hold any single significant investment which accounted for over 5% of the total assets.

MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND ASSOCIATES

For the Reporting Period, the Group had no material acquisitions or disposals of subsidiaries and associates.

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FOREIGN CURRENCY RISK MANAGEMENT

The Group’s revenue is mainly denominated in United States dollars and Hong Kong dollars while its expenditure is mainly denominated in Hong Kong dollars. The Group’s foreign exchange exposure is mainly from the translation of assets and liabilities denominated in United States dollars. As Hong Kong dollars are pegged to United States dollars, the Directors believe that the Group’s foreign exchange exposure is manageable and the Group will closely monitor this risk exposure from time to time.

HUMAN RESOURCES AND REMUNERATION POLICY

As at 30 June 2021, the Group had 85 (30 June 2020: about 69) employees including the Directors. For the Reporting Period, the total staff costs, including the Directors’ remuneration, was approximately HK$38.6 million (Previous Period: HK$33.6 million). Remuneration packages for the employees and the Directors are structured by reference to market terms, individual competence, performance and experience. Benefits plans maintained by the Group include the mandatory provident fund scheme, subsidized training program, share option scheme, share award scheme and discretionary bonuses.

PROSPECTS AND DEVELOPMENT STRATEGIES

Prospects

With the improvement in global economic conditions and the slowdown of the local COVID-19 pandemic, Hong Kong’s economy is on the road to recovery, with the real local Gross Domestic Product (GDP) recording a solid year-on-year growth of approximately 7.8% in the first half of 2021 as a whole. Looking ahead, it is believed that the recovery of the global economy, the stabilization of the local COVID-19 pandemic and the launch of the consumer voucher scheme will help stimulate local consumption, and in the short term will continue to contribute to the economic improvement of Hong Kong. However, the recent spread of the more contagious COVID-19 new variants in many countries has added further uncertainties to the global economic outlook for the rest of 2021. Other risk factors, such as Sino-US relations, geopolitical tensions, and changes in the monetary policy by the major central banks, will also impact the future of the local economy.

Although the Group is optimistic about the long-term sustainable economic growth in Hong Kong and Mainland China, and that the Group has committed itself to further developing its business, it should continue to act cautiously and keep an eye on the possible risks in the second half of the year. For these reasons, the Group will adopt the following development strategies.

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Development Strategies

The Company is globally oriented with the focus on Asia, and aims to build a leading comprehensive international investment banking platform focusing on investment banking and asset management and serving China Minsheng Banking Corp. Ltd. (being an indirect controlling shareholders of the Company) and its clientele. Specifically, the Group will adopt the following measures, inter alia:

• (1) actively promoting the development of listing sponsor and stock underwriting businesses, strengthening the business synergy and the channel for acquiring new clients, optimising the business synergy system mechanism, assisting targeted clients in gaining access to the Hong Kong investment banking business, expanding business resources and exploring potential project cooperation opportunities;

• (2) further strengthening the high-quality bond business, increasing cooperation with leading financial institutions, the domestic branches and business units, developing new client resources, further enhancing the bond sales capacity and gradually building a professional sales team;

• (3) with the three core orientations of creating an efficient sales model, accurate product development and providing quality services, the Group will seize the magnificent development opportunities of the integration of the Greater Bay Area to build a comprehensive and diversified asset management platform;

• (4) developing market-making business with the focus on high-quality urban investment bonds, financial bonds and real estate bonds;

• (5) building an offshore wealth management center, overseas service center and product center to provide customized offshore investment and wealth management service solutions for high-net-worth individuals and wealth management clients; and

• (6) to continuously strengthen and improve risk management and internal control, the Group will select projects carefully, monitor the status regularly, assess the risks frequently, promptly respond to any environmental change and improve its internal control procedures.

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In addition, the Group will continue to adhere to the upgraded basic strategy of “one body and two wings” with “one body” optimized, which is to further optimize the investment and financing business products and client structure; and “two wings” emphasized, which is to fully commit to improving the revenue and market position of investment banking and asset management businesses. Further, the Group focuses on both business development and compliance risk control, advocating the improvement of the three abilities of all staff, namely, compliance and risk control ability, marketing and communication ability and investment and trading ability, while emphasizing the adherence to the principle of “three bottom lines”, namely, legality and compliance bottom line, risk control bottom line and company interest bottom line, in order to comprehensively improve the sustainability and market image of the Company.

RISK MANAGEMENT CAPABILITIES

The Board recognises risk management as one of the key elements to the success of the Company and endeavours to improve risk management system to align with its business development strategically. The Group takes a pragmatic approach to manage different risks including credit risks, market risks, operation risks, legal and compliance risk, reputation, liquidity, IT and country risks. As at the date of this announcement, the Group has improved various risk management policies and procedures covering different business sectors. The Group has also established a centralised internal control and compliance management system to effectively monitor the Group’s operation and dealings. The Group will continue to enhance the risk management practices and the internal control system and to adopt a stringent governance framework with reference to the best practices in the market.

CORPORATE GOVERNANCE

The Company has complied with all the applicable provisions of the Corporate Governance Code (the “ CG Code ”) as set out in Appendix 14 to the Listing Rules throughout the Reporting Period except for the following deviation with reasons as explained:

Appointment of Directors

Code Provision A.4.1

Under the code provision A.4.1, non-executive directors should be appointed for a specific term and subject to re-election.

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Deviation

All the non-executive Directors were not appointed for a specific term. Notwithstanding such deviation, all Directors are subject to the retirement by rotation according to the provisions of the bye-laws of the Company. As such, the Company considers that sufficient measures have been taken to ensure that the Company’s corporate governance practices are no less exacting than those in the CG Code.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF LISTED ISSUERS (THE “MODEL CODE”)

The Company has adopted the Model Code as set out in Appendix 10 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors. In response to specific enquiry made by the Company, all Directors confirmed that they have complied with the required standards as set out in the Model Code throughout the Reporting Period.

AUDIT COMMITTEE

The condensed consolidated financial statements of the Company for the Reporting Period have been reviewed by the audit committee of the Company and the Company’s independent auditor, PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410 “Review of interim financial information performed by the independent auditor of the entity” issued by the Hong Kong Institute of Certified Public Accountants. The independent auditor, on the basis of their review, concluded that nothing has come to their attention that causes them to believe that the condensed consolidated financial statements are not prepared, in all material aspects, in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting”.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

The Board considers that the redemption of Shares could increase the net asset value and/or earnings per share, so the Company repurchased a total of 79,930,000 Shares on The Stock Exchange of Hong Kong Limited, with the total consideration of approximately HK$8.4 million for the six months ended 30 June 2021. As at the date of this announcement, all repurchased Shares have been cancelled.

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Details of redemption are as follows:

Month of redemption January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 Total	Total shares redeemed Highest price paid per share (HK$) Lowest price paid per share (HK$) Total consideration paid (HK$’000) 8,540,000 0.129 0.112 1,011 16,160,000 0.116 0.108 1,787 940,000 0.107 0.107 101 9,730,000 0.108 0.103 1,034 18,130,000 0.104 0.099 1,841 26,430,000 0.101 0.095 2,586 79,930,000 – – 8,360

Save as disclosed above, during the Reporting Period, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities.

EVENTS AFTER THE REPORTING PERIOD

Save as disclosed in this announcement, no major subsequent events affecting the Group had occurred since the end of the Reporting Period and up to the date of this announcement.

FURTHER INFORMATION ON THE ANNUAL REPORT OF THE GROUP FOR THE YEAR ENDED 31 DECEMBER 2020 (“ANNUAL REPORT 2020”)

(1) Connected transactions

All related party transactions referred to in Note 41(a) to the Annual Report 2020 constitute connected transactions or continuing connected transactions defined in Chapter 14A of the Listing Rules (“ Chapter 14A ”). The Company has complied with the provisions of Chapter 14A for the year ended 31 December 2020.

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(2) Retirement benefits schemes

For the year ended 31 December 2020, no forfeited contributions were available for utilization by the Company to reduce the existing level of contributions.

By order of the Board CMBC Capital Holdings Limited Li Jinze Chairman

Hong Kong, 30 August 2021

As at the date of this announcement, the executive Directors are Mr. Li Jinze, Mr. Ding Zhisuo and Mr. Ng Hoi Kam; the non-executive Directors are Mr. Yang Kunpeng and Mr. Li Wenshi; and the independent non-executive Directors are Mr. Lee, Cheuk Yin Dannis, Mr. Wu Bin and Mr. Wang Lihua.

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