CITIC Limited — Annual Report 2006

Mar 13, 2007

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.

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(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 2006

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 2006.

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 56.6% attributable interest in Daye. On 9 March 2007, the board of directors of Daye has approved the financial statements and auditors’ report for the year ended 31 December 2006. Daye’s audited financial results will be posted on the Shenzhen Stock Exchange’s website on 13 March 2007.

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 56.6% attributable interest in Daye. On 9 March 2007, the board of directors of Daye has approved the financial statements and auditors’ report for the year ended 31 December 2006. Daye’s audited financial results will be posted on the Shenzhen Stock Exchange’s website on 13 March 2007. 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 2006 and the Balance Sheet as at 31 December 2006 of Daye are provided below:

DAYE SPECIAL STEEL CO., LTD.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2006 – AUDITED

		2006	2005
		RMB	RMB
1.	Revenue from Principal Activity	4,543,900,208	4,446,239,395
	Less: Cost of Sales	4,149,185,598	4,198,591,832
	Business tax and surcharge	–	23,943,347
2.	Profit from Principal Activity	394,714,610	223,704,216
	Add: Profit from other activities	12,586,149	11,860,941
	Less: Operating expenses	36,057,550	29,427,495
	Administrative expenses	(12,999,035)	61,340,921
	Financial expenses (net amount)	35,708,034	57,818,253
3.	Operating Profit	348,534,210	86,978,488
	Add: Investment Income	145,221	–
	Subsidy	–	300,000
	Non-operating income	1,771,177	793,146
	Less: Non-operating expenses	32,791,328	7,704,127
4.	Profit before Tax	317,659,280	80,367,507
	Less: Income Tax	–	–
5.	Net Profit	317,659,280	80,367,507
BALANCE SHEET AS AT 31 DECEMBER 2006 – AUDITED
		31 December	31 December
		2006	2005
		RMB	RMB
ASSETS
Current Assets		1,253,220,493	1,426,010,917
Long	Term Investments	–	–
Fixed	Assets	1,673,986,544	1,714,965,039
Intangible Assets		31,255,094	32,155,094
Total	Assets	2,958,462,131	3,173,131,050
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities		1,256,430,166	1,804,651,822
Long	Term Borrowings	380,000,000	400,000,000
Total	Liabilities	1,636,430,166---------------------	2,204,651,822---------------------

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Shareholders’ EquityShare CapitalCapital ReserveSurplus ReserveRetained ProfitTotal Shareholders’ EquityTotal Liabilities and Total Shareholders’ Equity	449,408,480485,653,27484,196,234302,773,9771,322,031,965---------------------2,958,462,131	449,408,480449,759,81752,430,30616,880,625
		968,479,228---------------------
		3,173,131,050

GENERAL

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

Daye’s 2006 Annual Report, 2006 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, 12 March 2007

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, Carl Yung Ming Jie, Leslie Chang Li Hsien, Vernon Francis Moore, Li Shilin, Liu Jifu, Chau Chi Yin, Milton Law Ming To and Wang Ande; the non-executive directors of CITIC Pacific are Messrs Willie Chang, André Desmarais, Chang Zhenming 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.”

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