CITIC Limited — Annual Report 2005

Mar 20, 2006

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

==> picture [206 x 66] intentionally omitted <==

(Incorporated in Hong Kong with limited liability)

(Stock Code: 267)

DAYE SPECIAL STEEL CO., LTD. A SUBSIDIARY OF CITIC PACIFIC LIMITED ANNOUNCEMENT OF AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005

This Announcement is made by CITIC Pacific Limited (“CITIC Pacific” or “the Company”) pursuant to the requirements of Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited to provide shareholders of CITIC Pacific and the public with the audited financial results of Daye Special Steel Co., Ltd. (“Daye”), a subsidiary of the Company, for the year ended 31 December 2005.

SUMMARY

Daye, a subsidiary of CITIC Pacific, is a company incorporated in the People’s Republic of China (“PRC”) whose shares are listed on the Shenzhen Stock Exchange. CITIC Pacific has a 56.63% attributable interest in Daye. On 19 March 2006, the board of directors of Daye has approved the financial statements and auditors’ report for the year ended 31 December 2005. Daye’s audited financial results will be posted on the Shenzhen Stock Exchange’s website on 21 March 2006.

Daye, a subsidiary of CITIC Pacific, is a company incorporated in the PRC whose shares are listed on the Shenzhen Stock Exchange. CITIC Pacific has a 56.63% attributable interest in Daye. On 19 March 2006, the board of directors of Daye has approved the financial statements and auditors’ report for the year ended 31 December 2005. Daye’s audited financial results will be posted on the Shenzhen Stock Exchange’s website on 21 March 2006. The audited financial statements have been prepared in conformity with “Accounting Standards for Business Enterprises” and “Accounting Systems for Business Enterprises” of the PRC. The Profit and Loss Account for the year ended 31 December 2005 and the Balance Sheet as at 31 December 2005 of Daye are provided below:–

DAYE SPECIAL STEEL CO., LTD.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005 – AUDITED

1.Revenue from Principal ActivityLess: Cost of SalesBusiness tax and surcharge2.Profit from Principal ActivityAdd: Profit from other activitiesLess: Operating expensesAdministrative expensesFinancial expenses (net amount)3.Operating ProfitAdd: SubsidyNon-operating incomeLess: Non-operating expenses4.Profit before TaxLess: Income Tax5.Net Profit	2005RMB4,446,239,3954,198,591,83223,943,347223,704,21611,860,94129,427,49561,340,92157,818,25386,978,488300,000793,1467,704,12780,367,507–80,367,507	2004RMB3,810,099,1493,562,669,84613,815,733
		233,613,57015,003,44527,602,84780,710,21482,230,190
		58,073,764–2,215,02433,274,233
		27,014,555–
		27,014,555

– 1 –

BALANCE SHEET AS AT 31 DECEMBER 2005 – AUDITED

BALANCE SHEET AS AT 31 DECEMBER 2005 – AUDITED
	31 December 2005	31 December 2004
	RMB	RMB
ASSETS
Current Assets	1,426,010,917	2,331,916,886
Long Term Investments	–	–
Fixed Assets	1,714,965,039	1,697,797,949
Intangible Assets	32,155,094	33,055,094
Total Assets	3,173,131,050	4,062,769,929
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	1,804,651,822	2,775,280,882
Long Term Borrowings	400,000,000	409,991,250
Total Liabilities	2,204,651,822	3,185,272,132
	----------------	----------------
Shareholders’ Equity
Share Capital	449,408,480	449,408,480
Capital Reserve	449,759,817	1,047,874,832
Surplus Reserve	52,430,306	103,061,134
Retained Profit/(Accumulated Loss)	16,880,625	(722,846,649)
Total Shareholders’ Equity	968,479,228	877,497,797
	----------------	----------------
Total Liabilities and Total Shareholders’ Equity	3,173,131,050	4,062,769,929

GENERAL

Shareholders should note that the above audited financial results pertain only to Daye and not to CITIC Pacific itself.

Daye’s 2005 Annual Report, 2005 Summary Financial Report and other relevant information can be found on the Shenzhen Stock Exchange’s website (http://www.szse.cn).

By Order of the Board CITIC Pacific Limited Alice Tso Mun Wai Company Secretary

Hong Kong, 20 March 2006

As at the date of this announcement, the executive directors of CITIC Pacific are Messrs Larry Yung Chi Kin (Chairman), Henry Fan Hung Ling, Peter Lee Chung Hing, Norman Yuen Kee Tong, Vernon Francis Moore, Yao Jinrong, Li Shilin, Carl Yung Ming Jie, Liu Jifu and Leslie Chang Li Hsien; the non-executive directors of CITIC Pacific are Messrs Willie Chang, André Desmarais and Peter Kruyt (alternate director to Mr André Desmarais); and the independent non-executive directors of CITIC Pacific are Messrs Hamilton Ho Hau Hay, Alexander Reid Hamilton, Hansen Loh Chung Hon and Norman Ho Hau Chong.

“Please also refer to the published version of this announcement in The Standard and Hong Kong Economic Times.”

– 2 –