Announcement No.: pro 2022019
A share code: Industrial Bank Co.Ltd(601166) a share abbreviation: Industrial Bank Co.Ltd(601166)
Preferred stock code: 360005, 360012, 360032 preferred stock abbreviation: xingyeyou 1, xingyeyou 2, xingyeyou 3
Convertible bond Code: 113052 convertible bond abbreviation: Societe Generale convertible bond
Industrial Bank Co.Ltd(601166)
Announcement of profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
\uf020 considering the requirements of the regulatory authorities on the capital adequacy ratio of commercial banks, the demands of investors and the sustainable development needs of the company's business, and in accordance with the stable, continuous and predictable dividend policy determined by the company, it is proposed to distribute a cash dividend of RMB 1.035 per share (including tax) in 2021.
\uf020 this profit distribution is based on the total share capital of the company's common shares registered on the equity distribution registration date, and the specific equity registration date will be specified in the equity distribution implementation announcement.
\uf020 the 2021 profit distribution plan needs to be reviewed and approved by the 2021 annual general meeting of shareholders.
1、 Profit distribution plan
Industrial Bank Co.Ltd(601166) (hereinafter referred to as the company) the net profit attributable to the shareholders of the parent company and the net profit attributable to the legal person of the parent company in the consolidated statement of Chinese accounting standards audited by KPMG Huazhen Certified Public Accountants (special general partnership) in 2021 is 82.680 billion yuan. After deliberation and approval at the 5th meeting of the 10th board of directors of the company, the company plans to distribute profits to ordinary shareholders registered on the date of equity distribution in 2021 based on the net profit of the legal person of the parent company. The specific profit distribution plan is as follows:
(I) withdraw legal surplus reserve. According to the company law of the people's Republic of China, the statutory surplus reserve of the company has reached 50% of the registered capital at the end of 2021, so it will not be withdrawn.
(II) withdraw general preparation. In accordance with the provisions of the measures for the administration of reserve provision of financial enterprises issued by the Ministry of finance, the general reserve was 7.794 billion yuan.
(III) payment of preferred stock dividends. The company issued three issues of RMB preferred shares in a non-public manner, totaling 56 billion yuan, and the dividend payable on preferred shares in 2021 was 2.793 billion yuan.
(IV) distribute common stock dividends, and plan to distribute cash dividends of RMB 21.501 billion.
According to the relevant provisions of the articles of association on the profit distribution policy, taking into account the requirements of the regulatory authorities on the capital adequacy ratio of commercial banks, the demands of the majority of investors and the needs of the sustainable development of the company's business, it is proposed to distribute a cash dividend of RMB 10.35 (including tax) to the shareholders of ordinary shares registered on the equity distribution registration date, calculated according to the total share capital of 20774190751 ordinary shares by the end of 2021, The total cash dividend to be distributed is RMB 21.501 billion.
After the implementation of the above distribution plan, the retained undistributed profits will be transferred to the next year for the company to supplement the core Tier-1 capital.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the net profit attributable to the shareholders of the parent company according to the consolidated statements was 82.680 billion yuan, and the net profit attributable to the shareholders of the common stock of the parent company according to the consolidated statements was 78.420 billion yuan. Based on the total share capital of 20774190751 common shares by the end of 2021, the total cash dividend to be distributed was 21.501 billion yuan, accounting for 26.01% of the net profit attributable to the shareholders of the parent company in the consolidated statements of this year, Accounting for 27.42% of the net profit attributable to the common shareholders of the parent company according to the consolidated statements of the year. The main considerations are as follows:
(I) the external business environment affects the endogenous capital accumulation of commercial banks. Under the impact of the epidemic in the 21st century, the external environment is becoming more complex, severe and uncertain. In order to deal with various risk challenges, commercial banks should strengthen endogenous capital accumulation and improve their ability to resist risks.
(II) increased capital supervision requirements. The people's Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the measures for the evaluation of systemically important banks, the additional regulations on the supervision of systemically important banks (for Trial Implementation) and other relevant systems, as well as the subsequent implementation of Basel III and other external policies, which continuously improved the capital supervision requirements of commercial banks.
(III) implement the decision-making and deployment of the CPC Central Committee and the spirit of the central economic work conference, continue to increase credit supply and improve the quality and efficiency of serving the real economy in accordance with the general tone of seeking progress while maintaining stability. The company's dividend plan has considered the above business development and the capital needs to support the implementation of the company's development strategy.
(IV) fully consider the demands of investors. The company continued to strengthen communication with various types of investors, and fully considered and weighed the different demands of various types of investors when formulating the profit distribution plan.
Considering the above internal and external factors, the company's dividend policy generally maintains continuity and stability, and the cash dividend rate increases year by year, taking into account the interests of the company's shareholders and its own sustainable development needs.
3、 Decision making procedures for performance
(I) convening, deliberation and voting of the board meeting
The company held the fifth meeting of the 10th board of directors on March 24, 2022 and approved the profit distribution plan for 2021. All directors unanimously agreed to submit the profit distribution plan for 2021 to the 2021 annual general meeting of shareholders for deliberation.
(II) opinions of independent directors
All independent directors of the company believe that the company's profit distribution plan for 2021 strictly complies with the company law of the people's Republic of China, the measures for the administration of reserve provision of financial enterprises (CAI Jin [2012] No. 20), the guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies issued by the CSRC According to the relevant provisions of the guidelines for self discipline supervision of listed companies No. 1 - standardized operation and the articles of association of Shanghai Stock Exchange, the distribution order is legal, and the dividend distribution policy fully considers the demands of various types of investors and the needs of the sustainable development of the company's business on the premise of meeting the requirements of the regulatory authorities on the capital adequacy ratio of commercial banks. It is agreed to submit the profit distribution plan of 2021 to the 2021 annual general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The company held the 5th meeting of the 8th board of supervisors on March 23, 2022 and approved the 2021 profit distribution plan. The board of supervisors considered that the 2021 profit distribution plan and its decision-making procedures were in line with the profit distribution policy stipulated in the articles of association and the company's medium-term shareholder return plan (20212023).
4、 Relevant risk tips
The 2021 profit distribution plan can be implemented only after it is deliberated and approved by the 2021 annual general meeting of shareholders.
It is hereby announced.
Industrial Bank Co.Ltd(601166) board of directors March 24, 2022
