Securities Abbreviation: Industrial Bank    Securities Code: 601166       No.: T 2014-19

Industrial Bank Co., Ltd.

Announcement on Adding the Limit of Associated

Transactions for the People’s Insurance Company (Group)

of China Limited

The Company and all the members of the Board of Directors warrant the truthfulness, accuracy and completeness of the announcement and will bear the joint and several liabilities for any false record, misleading statement or major omission in the announcement.

Important content notes:

i. Transaction Contents:

On June 6, 2014, the 6th session of the 8th Board of Directors of the Company approved, after deliberation, the Proposal on Adding the Limit of Associated Transactions for the People’s Insurance Company (Group) of China Limited, agreeing to add the limit of non-credit associated transactions, worth 2 billion, to the People’s Insurance Company (Group) of China Limited and its affiliates (hereinafter referred to as the “PICC associated incorporations”), and meanwhile, the internal basic line of credit was reduced from RMB 5 billion to RMB 4.4 billion. The valid period of limit lasts till September 27, 2014.

ii. Issue Concerning Withdrawal from Voting: This transaction is an associated transaction, so Mr. Li Liangwen, the associated director of IB, withdrew from voting.

iii. Influence of associated transactions: The above associated transactions are regular business of the Company within the scope of normal business, so they have no significant influence on the business activities and financial situation of the Company and will not affect the independence of the Company.

I. Overview of this Associated Transaction

 The 6th session of the 8th Board of Directors of the Company approved, after deliberation, the Proposal on Adding the Limit of Associated Transactions for the People’s Insurance Company (Group) of China Limited, agreeing to add the limit of non-credit associated transactions, worth 2 billion, to the People’s Insurance Company (Group) of China Limited and its affiliates (hereinafter referred to as the “PICC associated incorporations”, and meanwhile, the internal basic line of credit was reduced from RMB 5 billion to RMB 4.4 billion. After the modification, the limit of associated transactions for PICC associated incorporations is RMB 4.4 billion for the internal basic line of credit and RMB 5.412 billion for limit of non-credit associated transactions, and the valid period of limit lasts till September 27, 2014.

II. Introduction of the Associated Parties

i. Basic information of the associated parties

1. The People’s Insurance Company (Group) of China Limited

Established in October 1949, the People’s Insurance Company (Group) of China Limited (PICC) is the first national insurance company of the People’s Republic of China, and it is a leading comprehensive insurance and finance group at home, with more than 10 professional subsidiaries including PICC Property and Casualty Company Limited, PICC Asset Management Company Limited, PICC Health Insurance Company Limited, and PICC Life Insurance Company Limited. The legal representative of PICC is Wu Yan, and the current registered capital is RMB 42.424 billion. PICC Group launched its IPO at the Stock Exchange of Hong Kong in December 2012. With businesses covering a broad range of areas, such as property insurance, life insurance, health insurance, asset management, insurance brokerage, trust and fund, PICC Group has established an industrial cluster of insurance and finance and group-based framework of integrated businesses, offering all-round insurance and financial services for the general public, institutions and groups.

2. PICC Property and Casualty Company Limited

PICC Property and Casualty Company Limited is currently the largest property and casualty insurance company in China. Listed at Stock Exchange of Hong Kong in 2003, the company has extended its businesses to a broad scope of property and casualty related insurance areas, such as motorized vehicle insurance, property insurance, shipping cargo insurance, accountability credit insurance, accident health insurance, energy, aviation and space insurance, and rural insurance.

3. PICC Life Insurance Company Limited

PICC Life Insurance Company Limited is national life insurance company, mainly engaging in the following businesses: life insurance, health insurance, accident insurance, personal reinsurance, and investment.

4. PICC Asset Management Company Limited

Established on July 16, 2003, PICC Asset Management Company Limited is the first insurance asset management company established at home, initiated and established by the People’s Insurance Company (Group) of China Limited with the consent of the State Council and China Insurance Regulatory Commission (CIRC), and it is also the first insurance asset management company with shares held by foreign investors. The registered capital of the company is RMB 800 million. At present, the company holds the qualifications for management of entrusted assets such as insurance capital and annuity, and the qualification for issuing investment and wealth management products, and boasts a well-established research system, investment decision-making system and risk control & compliance system.

ii. Association with the listed company

The People’s Insurance Company (Group) of China Limited, PICC Property and Casualty Company Limited, and PICC Life Insurance Company Limited hold 10.87% shares of the total capital stock of the Company after the non-public offering, and they are associated corporations of the Company. Specifically, PICC Property and Casualty Company Limited and PICC Life Insurance Company Limited are subsidiaries of the People’s Insurance Company (Group) of China Limited.

III. Main Contents and Pricing Policies of Associated Transaction

i. Main contents of associated transaction

In September 2013, the 20th session of the 7th Board of Directors approved to grant a limit of associated transactions of RMB 8.412 billion for PICC associated incorporations, with a term of 1 year. Specifically, the internal basic credit line is RMB 5 billion and the limit of non-credit associated transactions is RMB 3.412 billion.

Based on the business development needs, the Company agreed to further grant the limit of non-credit associated transactions, worth 2 billion, to the PICC associated incorporations, mainly for associated transactions regarding asset transfer, and meanwhile, the internal basic line of credit was reduced from RMB 5 billion to RMB 4.4 billion.

After the modification, the limit of associated transactions for PICC associated corporations includes: an internal basic credit line of RMB 4.4 billion, with the business types under the credit extension including financial bond, subordinated debt investment, RMB inter-bank capital lending/borrowing and bond repurchase for which the Company bears the credit risks of the credit receiver. The limit for non-credit associated transactions is RMB 5.412 billion, with the transaction types including funds market transactions, financial consulting and advising, asset management, wealth management, integrated services, and asset transfer, etc. The valid period of limit lasts till September 27, 2014.

ii. Pricing policies

Based on the prices of non-associated transactions with independent third parties, the associated transactions between the Company and PICC associated corporations follow the general business principles and are carried out under conditions not preferable to those for similar transactions with non-associated parties, and the price level is not below the average market level of the same industry in the same period.

In terms of existing transactions, the trading amount only accounts for a small proportion in the total amount of similar transactions. The settlement method is identical to that for non-associated transactions with independent third parties while the method and time of payment for such transactions are determined according to business practices.

IV. Purpose of Associated Transaction and Influence of the Associated Transaction on the Listed Company

The relevant businesses carried out between the Company and PICC associated incorporations are favorable for promoting further cooperation between the two sides. For the above associated transactions, the Company will conclude them according to the general business terms or terms not preferable to those applicable to independent third parties. The trading terms should be fair and reasonable, tallying with the requirements of relevant regulations set down by the regulatory authorities, relevant provisions of the Company’s internal rules, and the interests of the Company and all shareholders. Under no condition, they may impair the interests of the Company as well as small- and medium-sized shareholders, and have unfavorable influence on the current and future financial situation of the Company or the independence of the Company.

V. Opinions of Independent Directors

Independent Directors of the Company, including Mr. Deng Ruilin, Mr. Li Ruoshan, Mr. Zhang Jie, Mr. Zhou Qinye and Mr. Paul M. Theil, expressed the following independent comments on the matter of associated transaction:

1. In the aspect of fairness, as a regular business of the Company within the scope of normal business operation, the above associated transaction is priced under the conditions not preferable to those for similar transactions with non-associated parties, with fair and reasonable trading terms. Conforming to the requirements of relevant regulations set down by the regulatory authorities, relevant provisions of the Company’s internal rules, and the interests of the Company and all shareholders, it may, under no condition, impair the interests of the Company as well as small- and medium-sized shareholders, and have unfavorable influence on the current and future financial situation of the Company or the independence of the Company.

2. In the aspect of procedure, on June 5, 2014, the Audit and Associated Transactions Control Committee of the 8th Board of Directors of the Company held a meeting, agreeing, after deliberation, to submit the above proposal on associated transactions to the Board of Directors for deliberation. The 6th session of the 8th Board of Directors of the Company deliberated and approved the above associated transactions on June 6. The decision-making procedure is in compliance with relevant regulatory requirements and relevant provisions the Articles of Incorporation.

VI. Catalog of Documents for Reference

1. Resolution of the Audit and Associated Transactions Control Committee of the Board of Directors;

2. Resolution of the Board of Directors;

3. Independent Opinions signed and confirmed by independent directors.

It is hereby to announce as foregoing.

Board of Directors of Industrial Bank Co., Ltd.

June 6, 2014