The Industrial Bank Co., Ltd (the “Company”) and all members of the Board of Directors hereby warrant that the information contained in this announcement is true, accurate and complete, and assume joint and several liabilities for any false representation, misleading statement or material omission.
The 2006 Profit Distribution Plan of the Industrial Bank Co., Ltd. was deliberated on and passed at the 2006 annual general shareholders' meeting held on April 28, 2007. The resolution announcement of the general shareholders' meeting was published on May 8, 2007 in China Securities Journal , Shanghai Securities News , Securities Times and Securities Daily . The detailed implementation items are hereby announced as follows:
I. 2006 Profit Distribution Plan
According to both domestic and international public accounting firms, the net profit of the company in 2006 was RMB3,798,255,861.95 . In addition to the undistributed profit RMB 2,030,721,302.48 from the beginning of the year, the total distributable profit at the end of the year was RMB5,828,977,164.43 .
Profit distribution plan: 10% of annual net profit should be drawn as statutory surplus reserve i.e. RMB379,825,586.20; according to A dministrative Measures for the Withdrawal of Reserves for Non-performing Debts of Financial Enterprises (Cai Jin [2005] No. 49) promulgated by Ministry of Finance, RMB1,226,864,668.38 should be drawn as general reserves. With the 5 billion shares after the A-share IPO in 2007 as the base number, every 10 shares shall be entitled to a cash bonus of RMB2.6 (including tax), and total cash bonus will be RMB1.3 billion. The balance of undistributed profit i.e. RMB2,922,286,909.85 will be carried forward to the next year.
II. Equity Registration Date, Ex-dividend Date, Cash Bonus Distribution Date
Equity Registration Date: May 18, 2007
Ex-dividend Date: May 21, 2007
Cash Bonus Distribution Date: May 25, 2007
III. Shareholders Entitled to Bonus & Dividend Distribution
All shareholders of the Company registered with the Shanghai Branch of China Securities Depository & Clearing Corporation Ltd as of the close of the Shanghai Stock Exchange on the afternoon of May 18, 2007.
IV. Implementation Methods of Distribution
1. Under the provisions of the Notice of the Ministry of Finance and the State Administration of Taxation Concerning Individual Income Tax Policy on Dividends and Bonus Shares (Cai Shui [2005] No.102 ): “ individual investors that receive dividends and bonus income from listed companies may exclude 50 percent from their taxes, and the individual income tax thereon will be levied in accordance with the effective Tax Law ”, the Company will withhold individual income tax at a tax rate of 10% for individual shareholders holding the Company's shares, as a result, the actual cash bonus to be distributed is RMB0.234 per share; corporate shareholders and other institutional investors will pay income tax by themselves, and the actual cash bonus to be distributed will be RMB0.26 per share.
2. For the 2,028,077,333 shares held by the Finance Bureau of Fujian Province, Hang Seng Bank Limited, Tetrad Ventures Pet., Ltd., International Finance Corporation (IFC), Fujian Xingyin Property Management Co., Ltd. and the shareholders that have not confirmed their securities depository accounts, the Company will pay cash bonus to them directly.
3. Other than the shareholders listed above, the release of cash bonus for the shares held by other shareholders will be entrusted to Shanghai Branch of China Securities Depository and Clearing Corporation Limited, which will, through its capital clearing system, release the cash bonus to shareholders that are registered on the equity registration date and that have conducted the designated transactions with member units in Shanghai Securities Exchange. Shareholders that have conducted the designated transactions in full may collect their cash bonus at the designated securities business departments on the cash bonus distribution date. The bonuses of shareholders who have failed to conduct the designated transactions will transitionally be kept by Shanghai Branch of China Securities Depository and Clearing Corporation Limited, and will be distributed upon completion of the designated transactions.
Board of Directors of Industrial Bank Co., Ltd.
May 15, 2007