China Renaissance:

1H20 ResultsAugust 2020

This document is prepared by China Renaissance Holdings Limited (China Renaissance Holdings Limited and any of its

subsidiaries, associated companies, and affiliates, or any of their directors, officers, agents, advisers or employees are

together known as “China Renaissance”). This document has been prepared for the recipient’s information purpose only.

The recipient shall conduct its own investment review, evaluation and assessment.

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seek its own independent advice.

22

Disclaimer

BUSINESS UPDATE

44

1H20 Business Highlights

Strong investment income supported revenue growth;

synergistic with business operations

Higher efficiency in capital utilization; higher ROE

Investment management started

to reap the benefits from

portfolio investments

Investment banking increasingly focused on domestic markets, with strong project pipeline

Healthcare investment banking +

investment management

ecosystem showed robust results

Wealth management business on track

55

Strong Investment Income Supported Revenue Growth; Synergistic with Business Operations

Stronger revenue contributions from investment management segment

Investment income accounted for a higher percentage of total revenue

1H20 revenue went up by 49% YoY to RMB117 mn, with higher contributions from investment income, which is also synergistic with fee-generating business operations.

88%

74%66% 62%

43%

24%

12%

24%

26%27%

37%

55%

8% 11%

16% 17%

4% 5%

2015 2016 2017 2018 2019 1H20

Investment banking Investment management Huajing Securities Others

94% 93% 91% 84%

74%

41%

6% 7% 9% 16%

26%

59%

2015 2016 2017 2018 2019 1H20

Fees Interest income and investment gains

66

Not only are investment gains from Group capital allocation conducive to our earnings, they are also highly synergistic with our fee-generating business operations

Investment Banking

Investment Management

Wealth Management

Capital Allocation

• Client referral between investment banking and investment management

• Investment portfolio fair value and IRR increases as investment banking assist invested companies in private placement and IPO

• Structured financing with Group funding for investment banking clients

• Increase return on capital and ROE

• Group capital invests in wealth management products

• Increase return on capital and ROE

• Wealth management invest in investment management products

• High net worth individuals could be investment management LPs

• Group capital invests in actively managed investment management funds

• Increase return on capital and ROE

• Senior management of investment banking

clients become wealth management clients

• Wealth management enhances client

stickiness

• Wealth management provides cash

management for institutional clients

Strong Investment Income Supported Revenue Growth; Synergistic with Business Operations

77

0

500

1,000

1,500

2,000

2,500

3,000

Funds managed by CR or thirdparties

Structured financing Cash management - Huajing Cash management - Group

Higher Efficiency in Capital Utilization; Higher ROE

• 1H20 annualized ROE: 15%

• Cash position on balance sheet: RMB4.6 billion

• Plan to bolster fee-income generation through more efficient utilization of group capital

➢ Plan to allocate more group capital in investing in investment management funds, leading to higher amount of total AUM

➢ Facilitate investment banking business with structured financing for key account clients

➢ Expect upside from return on Huajing’scapital after obtaining principal investment license in 2H20

（RMB million, in fair value）

Return

(1) IRR as of 1H20

20-35% (1) 8-10% 3% 3%

Overview of Group Capital Allocation and Returns

88

Investment Management Started to Reap the Benefits from Portfolio Investments – Scale

AUM by product

AUM by fund currency

（RMB million）

1H20 AUM amounted to near RMB40 billion

7,747

12,936

21,384

28,300

34,236

38,982

50,000

2015 2016 2017 2018 2019 1H20 2022E

+ Healthcare RMB Fund II

+ Growth Capital RMB Fund IV

+ Growth Capital USD Fund IV

+ New products / strategies

……

>

63%10%

27% Growth Capital

Healthcare Capital

Project Funds

73%

27%

RMB

USD

99

Investment Management Started to Reap the Benefits from Portfolio Investments – Performance

Gross unrealized carried interest

6

42

21

159

127141

184

167

2014 2015 2016 2017 2018 2019 1H20

Net unrealized carried interest Net realized carried interest

RMB2.4 billion gross unrealized carried interest and RMB700 million net unrealized carried interest have been accumulated since 2014

➢ Unrealized carried interest has not been accounted for in P&L under IFRS

➢ Net unrealized carried interest generation surpassed RMB100 million each year since 2017

➢ Expect gradual release of accumulated unrealized carried interest into P&L in the next 3-4 years, as funds start to enter their exit stages

➢ Expect investment returns to remain healthy, with higher unrealized carried interest generation by 2022

Net unrealized carried interest

23

143 70

492 450 461

809

42 21

2014 2015 2016 2017 2018 2019 1H20

Gross unrealized carried interest Gross realized carried interest

Revenue

Net profit

RMB2.4 billion accumulated

RMB700 million accumulated

（RMB million）

（RMB million）

1010

Investment Management Started to Reap the Benefits from Portfolio Investments – Projects

1H20 Investments (Selective)

✓ As of 1H20，average multiple on invested capital (MOIC) for funds with completed investment was 2.5x

✓ As of 1H20，average IRR for funds with completed investment was 33%

✓ RMB1 billion distribution to LP in 1H20

Other Existing Investments in the Portfolio (Selective)

/ Multi-grade Consumption /

/ Industrial Upgrade /

YTD20 IPO

/ Technology Innovation /

The high quality investments in 1H20, as well as the solid existing portfolio investments, paved way for strong financial results in the future.

（Didi) （Meituan)

（Kuaishou)

（Miss Fresh)

（Li Auto)

（JD Digital)（Beike)

1111

Investment Banking Increasingly Focused on Domestic Markets, with Strong Project Pipeline

Private Placement

+IPO

Huajing Secondary market

• Focus on key account clients; private placement increasingly

integrated with IPO business

• Reshuffle investment banking structure, with broader business

realm and comprehensive solutions

• Continued investment in talent and platform yielded stronger

project pipeline in the next 6-18 months

• 2H20 to obtain principal investment and financial product distribution licenses

• Optimized client referral and integration with CR Group

• Fast growth in brokerage business

• Market share and ranking continued to improve

US$1bn

May 2020

US$300 mn

April 2020

Convertible Bond Strategic

Investments

US$300 mn

Apr-May 2020

Privatization

US$579 mn

April 2020

Private Placement

SEHK: 9939

May 2020

US$240 mn

SEHK: 9618

June 2020

US$3.84 bn

Financial Advisory

HK/US IPO

1H20 Projects (Selective)

IMAB.O

January 2020

US$100 mn

1H20 affected by COVID-19; Expect stronger momentum in 2H20

Convertible Bond

March 2020

US$200 mn

1212

Investment Banking Increasingly Focused on Domestic Markets, with Strong Project Pipeline – Talents

Notable commitment in talent recruitment in investment banking business in the past 3 years, in order to broaden business scope and provide comprehensive solutions to clients.

US/HK IPO

Secondary market

Huajing

• 5 MDs were hired in 2018-

1H20

• Previous work experiences

at China Securities, China

Merchants Securities, GF

Securities, etc. Average

experience:15 years

• 1-2 MD to be hired in 2H20

• 4 MDs were hired in 2018-1H20

• Previous work experiences at BNP Paribas、UBS、Credit Suisse、Deutsche Bank、China Merchants Securities, etc. Average

experience: 23 years

• 4 MDs were hired in 2018-

1H20

• Previous work experiences

at Goldman Sachs Gao Hua,

Morgan Stanley, Credit

Suisse, Merrill Lynch, etc.

Average experience: 14

years

• 1 MD to be hired in 2H20

Mr. Cong Lin

• 2016~2020 ICBC International Chairman and

CEO

• 2007~2016 ICBC Leasing President

• 1998~2007 ICEA Finance Holdings Vice

President

• 1990~1998 ICBC Credit Department,

International Department, etc

Joined as CR Group President since July

2020, in charge of overall investment

banking business

Leveraging CR’s operations and team

across mainland China, Hong Kong and

the US, seize the market reform

opportunities in STAR, GEM, and Hong

Kong market, in order to become an

integrated investment bank with a full suite

of product and service offerings

1313

Healthcare Investment Banking + Investment ManagementEcosystem Showed Robust Results

Investment

banking

Investment

management

SEHK: 9939

May 2020

US$240 mn

IMAB.O

Jan 2020

US$100 mn

Private placement

HK/US IPO

US$1 bn

May 2020

RMB1 bn

May 2020

Leading market share in private placement market

1H20 Projects (Selective)

Excellent investment returns; clear exit paths

Submitted STAR IPO application

Submitted HK IPOapplication

2019 STAR IPO

Investment banking + investment management cooperation

1414

Wealth Management Business On Track

Team Product

Client AUM➢ Existing AUM：RMB2.6 bn

➢ AUM increase in 1H20:

RMB700 mn

➢ Team structure setup completed

with optimized front/middle/back

offices

➢ Continued talent recruitment

➢ Clients are mainly new economy

related wealth customers

➢ Asset allocation for ultra-high

net worth individuals

➢ Cash management for leading

new economy firms

➢ External asset manager (EAM)

model with strategic partner LGT

➢ 4 main types: cash management,

fixed income, equity investment,

and alternative investment

➢ Coordination with Group resources

for CR specialty projects and

HK/US IPO subscriptions

1 2

3 4

1515

Outlook

We strive to triple our 2019 net profit by 2022, maintaining a relatively high ROE.

Stronger project pipeline and higher efficiency in revenue / staff will contribute to investment banking profitability

More efficient capital utilization after Huajing’s principal investment license is granted in 2H20

Carried interest gradually realizes as net profit in the next 3-4 years; management fee grows as committed capital increases with new fundraising

FINANCIAL UPDATE

1717

85

46 38

77 45

70

22 47

66

40

1H18 2H18 1H19 2H19 1H20

美元

人民币

186 195 155

189

100

5 28

11

19

29

1H18 2H18 1H19 2H19 1H20

美元基金

人民币基金

1H20 Business Environment

（US$ bn）

Private placement transaction volume shrank,

affected by COVID-19

（US$ bn）

PE fundraising scale further

slipped

（US$ bn）

PE investment declined on YoY

and HoH basis

155 150

83

108

78

1H18 2H18 1H19 2H19 1H20

2

16

4

18

9

4 3

1 2 2

1H18 2H18 1H19 2H19 1H20

港股中资新经济IPO 美股中资新经济IPO

New economy IPOs in HK and the US

still have upside potential

（US$ bn）

USD

RMB

USD

RMB

New economy

IPO in HK

New economy

IPO in the US

1818

Total Revenue1 (RMB million) Revenue by Segment1 (RMB million)

Revenue Percentage by Segment

Notable Revenue Contribution from Investment Management

277

643

19453 Investment banking

Investment

management

Huajing Securities

Others

24%

55%

17%5%

投资银行

投资管理

华菁证券

其他

1 Include net investment gains

1,578 1,622

785

1,167

2018 2019 1H2019 1H2020

Investment banking

Investment management

Huajing Securities

Others

Investment banking

Investment management

Huajing Securities

Others

1919

Operating Profit (RMB million) Net Profit (RMB million)

Significant Profit Growth

407 407 407

36 36

184

SBC

Unrealized net carried interest

Net profit (unadjusted)

Net profit (unadjusted)

Adjusted net

profit (with SBC)Adjusted net profit

(with SBC and

unrealized net

carried interest)

1H19 177 212 258

443

627

369

438

186

468

2018 2019 1H2019 1H2020

YoY 130% +109% +143%

2020

Revenue by Segment1 (RMB million) Operating Profit / (Loss) by Segment (RMB million)

Revenue and Operating Profit Driven by Diversified

Sources

353313

100

18

277

643

194

53

投资银行 投资管理 华菁证券 其他

1H19 1H20

45

148

(8)

1 39

394

45

(10)

投资银行 投资管理 华菁证券 其他

1H19 1H20

1 Include net investment gains

Investment

Banking

Investment

ManagementHuajing Others

Investment

Banking

Investment

ManagementHuajing Others

2121（1）

Group Cost/Income Improved Group ROAE increased to 15%

资管业务成本增幅低于收入增幅

More Efficient Cost Control Supported Profitability

（1）

（1）Adjusted fair value changes from financial instruments from IPO, so as to compare with data later on

（Cost/Income）

77%

73%76%

60%

2018 2019 1H2019 1H2020

10.0%

4.9%

7.1%

15.3%

2018 2019 1H2019 1H2020

Group profit margin widened notably Group (excluding Huajing) ROAE was 20%

18.4%

5.9%

9.5%

20.2%

2018 2019 1H2019 1H2020

20.2% 19.9%

27.0%

37.9%

2018 2019 1H2019 1H2020

2222

24.9%

11.6%12.8%

14.1%

2018 2019 1H2019 1H2020

52,766

21,891

16,532

33,991

1H19 1H20

顾问服务 股票承销

282

192

27

21

40

55

1H19 1H20

顾问服务 股票承销

销售、交易和经纪业务 投资收入

277

1H20 Results Transaction Volume (RMB million)

Segment Revenue (RMB million) Operating Profit Margin

353

Investment Banking：Revenue Pressured by Market

Environment

• Revenue RMB277 million, down 21.6% YoY

• Operating profit RMB39 million, down 13.6% YoY

• Operating profit margin increased to 14.1%

• Continued investment into investment banking business,

with staff up 10% YoY

• Strong project pipeline in the next 6-18 months, stemming

from continued investment in talent and platformAdvisory Equity Underwriting

Equity UnderwritingAdvisory

Investment incomeSales, trading and

brokerage

2323

1H20 Results Committed Capital (RMB million)

Invested Capital (RMB million) AUM (RMB million)

Investment Management: Driven by Strong Investment

Performance

6,922

11,619

17,484

21,873

26,055 26,899

2015 2016 2017 2018 2019 1H20

2,466

7,95110,459

14,079

16,62918,903

2015 2016 2017 2018 2019 1H20

7,74712,936

21,384

28,30034,236

38,982

2015 2016 2017 2018 2019 1H20

• Revenue RMB643 million, up 105.4% YoY

• Operating profit RMB394 million, up 166.6% YoY

• Average IRR 33% for funds having completed investments

• Realized carried interests RMB21 million in 1H20

• Accumulated net unrealized carried interest near RMB700million

2424

1H20 Results Operating Profit / (Loss) (RMB million)

Segment Revenue1 (RMB million) Net Profit (RMB million）

Huajing Securities：Expects Further Synergies with Group

166

262

100

194

2018 2019 1H2019 1H2020

(80)

64

(8)

45

2018 2019 1H2019 1H2020

(70)

62

4

20

2018 2019 1H2019 1H2020

• Revenue RMB194 million, up 93.5% YoY

• Operating profit RMB45 million, compared to operating loss

in 1H19

• Continued investment into domestic businesses, with

Huajing staff up 14% YoY

• More streamlined client referral from Group to Huajing, with

synergies increasingly realized

• Returns on capital to be increased after obtaining

proprietary trading and agent sales licenses in 2H20

2525

Total Assets（RMB million） Interest Bearing Liabilities (RMB million)

1 Including cash and cash equivalents, term deposits, and financial assets at fair value through profit or loss (current portion)

Shareholders’ Equity (excluding minority)

Balance Sheet – High Liquidity and Low Leverage

Cash Position1 (RMB million)

7,316

9,510

8,219

10,414

2018 2019 1H2019 1H2020

0

130

0

183

2018 2019 1H2019 1H2020

4,802 5,010

5,217

4,564

2018 2019 1H2019 1H2020

4,939 5,159 5,054 5,460

2018 2019 1H2019 1H2020