CITIC Limited — Annual Report 2016

Mar 1, 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim 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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OVERSEAS REGULATORY ANNOUNCEMENTS

(These overseas regulatory announcements are issued pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

The following announcements are released by CITIC Envirotech Ltd. (a subsidiary of CITIC Limited) to Singapore Exchange Limited on 1 March 2017:-

• (1) Full Year Financial Statement & Dividend Announcement for the year ended 31 December 2016; and

• (2) Media release – CITIC Envirotech recorded its highest revenue and net profit of S$102 million for the financial year ended 31 December 2016.

Hong Kong, 1 March 2017

As at the date of this announcement, the executive directors of CITIC Limited are Mr Chang Zhenming (Chairman), Mr Wang Jiong, Ms Li Qingping and Mr Pu Jian; the non-executive directors of CITIC Limited are Mr Yang Jinming, Mr Liu Yeqiao, Mr Song Kangle, Ms Yan Shuqin, Mr Liu Zhongyuan and Mr Yang Xiaoping; and the independent non-executive directors of CITIC Limited are Mr Francis Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Ms Lee Boo Jin, Mr Noriharu Fujita and Mr Paul Chow Man Yiu.

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CITIC ENVIROTECH LTD. (Company registration number: 200306466G)

Listed companies must provide the information required by Appendix 7.2 of the Listing Manual. Adequate disclosure should be given to explain any material extraordinary item either as a footnote of the material extraordinary item or in the "Review of the performance of the group".

Full Year Financial Statement & Dividend Announcement For The Year Ended 31 December 2016

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000	Group 12 months ended 31/12/2015 $’000	12 months ended 31/12/2016 VS 12 months ended 31/12/2015 % Increase/ (Decrease)
Revenue Other income Changes in inventories Material purchased, consumables used and subcontractors’ fees Employee benefits expense Depreciation and amortisation expenses Other operating expenses Finance costs Share of profit/(loss) of associates Profit before income tax Income tax expense Net profit for the year	544,555 19,319 3,207 (281,153) (50,054) (22,182) (49,576) (39,573) 6,814	274,761 20,248 (2,673) (111,973) (34,023) (15,962) (39,692) (29,212) (3)	335,979 27,426 (3,050) (136,450) (47,830) (22,619) (40,321) (37,499) (3)	62.1 (29.6) N/M 106.0 4.6 (1.9) 23.0 5.5 N/M 73.7 21.7 98.1
	131,357 (29,401)	61,471 (18,861)	75,633 (24,168)
	101,956	42,610	51,465

During the last financial period, the Company changed its financial year end from 31 March to 31 December. The last corresponding financial period ended 31 December 2015 covers the 9-month period from 1 April 2015 to 31 December 2015. 12-month statement of comprehensive income of the group for the period from 1 January 2015 to 31 December 2015 is included for comparison purposes.

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		Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000	Group 12 months ended 31/12/2015 $’000	12 months ended 31/12/2016 VS 12 months ended 31/12/2015 % Increase/ (Decrease)
	Statement of Comprehensive Income Profit for the year attributable to: Owners of the Company Non-controlling interests Profit for the year Fair value change in available-for-sale investment Currency translation (loss)/gain Total comprehensive income for the year Total comprehensive income attributable to: Owners of the Company Non-controlling interests	99,312 2,644	40,762 1,848	48,299 3,166	105.6 (16.5) 98.1 N/M N/M 60.8 68.0 (16.5) 60.8
		101,956	42,610	51,465
		- (41,877)	- (5,054)	(17,252) 3,148
		60,079	37,556	37,361
		57,435 2,644	35,708 1,848	34,195 3,166
	Total comprehensive income for theyear	60,079	37,556	37,361

1(a)(ii) Breakdown to statement of comprehensive income

	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000	Group 12 months ended 31/12/2015 $’000	12 months ended 31/12/2016 VS 12 months ended 31/12/2015 % Increase/ (Decrease)
Employee share option expense Interest expense on bank borrowings and finance leases Interest expense on MTN bond Finance cost on convertible bonds Interest income Foreign currency exchange (gain)/loss One-off fees relating to the General Offer in April 2015 Loss on disposal of property, plant and equipment Loss on disposal of service concession receivable Gain on disposal of a subsidiary Impairment loss on non-current assets held-for-sale Allowance for doubtful receivables	7,337 21,809 17,764 - (3,138) (2,934) - 26 2,043 (873) 2,494 1,028	6,930 16,189 12,469 554 (5,276) (3,111) 6,508 122 - - - -	10,166 18,459 15,495 3,545 (5,851) 646 6,508 122 - - - -	(27.8) 18.1 14.6 N/M (46.4) N/M N/M (78.7) N/M N/M N/M N/M

N/M: Not meaningful

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1(b)(I) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

	Group 31/12/2016 $’000	Group 31/12/2015 $’000	Company 31/12/2016 $’000	Company 31/12/2015 $’000
ASSETS
Current assets:
Cash and bank balances	493,541	540,466	110,426	198,024
Trade receivables	240,414	218,323	-	-
Service concession receivables	6,248	4,342	-	-
Other receivables and prepayments	141,233	163,691	851,053	732,231
Inventories	13,777	10,570	-	-
Prepaid leases	736	766	-	-
	895,949	938,158	961,479	930,255
Assets classified as held for sale	55,645	34,582	-	-
Total current assets	951,594	972,740	961,479	930,255
Non-current assets:
Trade receivables	25,036	4,687	-	-
Service concession receivables	597,191	504,819	-	-
Other receivables and prepayments	15,577	16,293	-	-
Prepaid leases	39,996	36,704	-	-
Subsidiaries	-	-	413,323	279,023
Associates	17,807	10,608	10,588	10,611
Property, plant and equipment	374,470	148,871	182	249
Goodwill	255,365	255,365	-	-
Intangible assets	271,894	222,282	200	200
Deferred tax assets	1,111	517	-	-
Total non-current assets	1,598,447	1,200,146	424,293	290,083
Total assets	2,550,041	2,172,886	1,385,772	1,220,338
LIABILITIES AND EQUITY
Current liabilities:
Bank loans	76,499	237,141	-	-
Medium term notes	-	97,700	-	97,700
Trade payables	310,048	140,708	-	-
Other payables	79,410	52,641	15,064	21,071
Finance leases	161	180	17	17
Income tax payable	30,534	25,054	-	-
	496,652	553,424	15,081	118,788
Non-current liabilities held for sale	31,953	31,238	-	-
Total current liabilities	528,605	584,662	15,081	118,788
Non-current liabilities:
Bank loans	256,868	188,610	-	-
Finance leases	169	256	66	83
Medium term notes	223,449	222,226	223,449	222,226
Deferred tax liabilities	45,432	36,376	-	-
Total non-current liabilities	525,918	447,468	223,515	222,309

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	Group 31/12/2016 $’000	Group 31/12/2015 $’000	Company 31/12/2016 $’000	Company 31/12/2015 $’000
Capital and reserves:
Share capital	608,063	607,973	608,063	607,973
Perpetual capital securities	481,250	242,055	481,250	242,055
General reserve	7,414	5,330	-	-
Capital reserve	2,096	2,096	-	-
Share option reserve	27,782	20,445	27,782	20,445
Currency translation reserve	(11,999)	29,878	7,160	4,415
Retained earnings	264,385	193,971	22,921	4,353
Equity attributable to owners of the Company	1,378,991	1,101,748	1,147,176	879,241
Non-controlling interests	116,527	39,008	-	-
Total equity	1,495,518	1,140,756	1,147,176	879,241
Total liabilities and equity	2,550,041	2,172,886	1,385,772	1,220,338

1(b)(ii) Aggregate amount of group’s borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 31/12/2016		As at	31/12/2015
Secured	Unsecured	Secured	Unsecured
$’000	$’000	$’000	$’000
76,660	-	237,321	97,700
Amount repayable after one year
As at 31/12/2016		As at	31/12/2015
Secured	Unsecured	Secured	Unsecured
$’000	$’000	$’000	$’000
257,037	223,449	188,866	222,226

Details of any collateral

1. The finance leases of $330,000 (31 December 2015: $436,000) is secured over the Group’s motor vehicles.

2. The bank loans of $333,697,000 (31 December 2015: $426,187,000) are secured over the concession receivables, intangible assets, treatment plants, prepaid lease and leasehold buildings of its subsidiaries.

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1(c) A statement of cash flow (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000
Operating activities
Profit before income tax	131,357	61,471
Adjustments for:
Gain on disposal of a subsidiary	(873)	-
Loss on disposal of property, plant and equipment	26	122
Loss on disposal of service concession receivable	2,043	-
Impairment loss on non-current assets held-for-sale	2,494	-
Allowance for doubtful receivables	1,028	-
Interest income	(3,138)	(5,276)
Finance costs	39,573	29,212
Share of (profit)/loss of associates	(6,814)	3
Depreciation and amortisation expenses	22,182	15,962
Share option expense	7,337	6,930
Exchange differences arising on foreign currency translation	(17,697)	1,029
Operating profit before working capital changes	177,518	109,453
Trade receivables	(53,261)	11,231
Other receivables and prepayments	30,824	(92,713)
Inventories	(3,192)	2,671
Trade payables	166,697	26,356
Other payables	37,886	(32,940)
Cash generated from operations	356,472	24,058
Interest received	3,138	4,691
Interest paid	(38,539)	(18,208)
Income tax paid	(14,581)	(8,284)
Net cash from operating activities	306,490	**2,257 **
Investing activities
Addition to service concession receivables	(130,347)	(34,876)
Addition to intangible assets	(44,260)	(7,365)
Addition to prepaid leases	(4,491)	-
Investment in associates	(382)	(10,611)
Proceeds from disposal of property, plant and equipment	3	87
Proceeds from disposal of service concession receivable	739	-
Disposal of a subsidiary	3,350	-
Contribution from non-controlling shareholders	72,426	2,009
Addition to property, plant and equipment	(259,317)	(76,946)
Net cash outflow from acquisition of subsidiaries	(36,120)	(86,100)
Net cash used in investing activities	(398,399)	(213,802)

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	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000
Financing activities
Proceeds from bank borrowings	195,286	171,770
Proceeds from issuing shares	90	56,359
Proceeds from issuing medium term notes	-	222,048
Redemption of medium term notes	(99,000)	(1,010)
Proceeds from issuing perpetual capital securities	239,195	242,055
Dividend paid	(21,200)	(5,633)
Repayment of obligations under finance lease	(106)	(55)
Repayment of bank borrowings	(258,398)	(50,323)
Net cash from financing activities	**55,867 **	635,211
Net (decrease) increase in cash and cash equivalents	(36,042)	423,666
Cash and cash equivalents at beginning of year	540,466	113,757
Net effect of exchange rate changes on the balance and cash held in foreign currencies	(10,883)	3,043
Cash and cash equivalents at end of year	493,541	540,466

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1(d)(I) A statement (for the issuer and group) showing either (I) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders.

		Share capital $’000	Perpetual capital securities $’000	General reserve $’000	Capital reserve $’000	Share option reserves $’000	Currency translation reserve $’000	Retained earnings $’000	Total equity attributable to owners of the Company $’000	Non controlling interests $’000	Total equity $’000
	Group At 1 January 2016 Total comprehensive income for the period Recognition of share based payment Issuance of shares on exercise of the ESOS Issuance of perpetual capital securities Perpetual capital securities issuance expense Incorporation of subsidiaries Acquisition of subsidiaries Disposal of subsidiary Transfer to general reserve Dividend paid/ payable At 31 December 2016	607,973 - - 90 - - - - - - -	242,055 - - - 242,037 (2,842) - - - - -	5,330 - - - - - - - - 2,084 -	2,096 - - - - - - - - - -	20,445 - 7,337 - - - - - - - -	29,878 (41,877) - - - - - - - - -	193,971 99,312 - - - - - - - (2,084) (26,814)	1,101,748 57,435 7,337 90 242,037 (2,842) - - - - (26,814)	39,008 2,644 - - - - 72,426 3,144 (695) - -	1,140,756 60,079 7,337 90 242,037 (2,842) 72,426 3,144 (695) - (26,814)
		608,063	481,250	7,414	2,096	27,782	(11,999)	264,385	1,378,991	116,527	1,495,518

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		Share capital $’000	Perpetual capital securities $’000	General reserve $’000	Capital reserve $’000	Share option reserves $’000	Convertible bonds reserves $’000	Currency translation reserve $’000	Retained earnings $’000	Total equity attributable to owners of the Company $’000	Non controlling interests $’000	Total equity $’000
	Group At 1 April 2015 Total comprehensive income for the period Recognition of share-based payment Issuance of shares capital Issuance of shares on conversion of convertible bonds Issuance of shares on exercise of the ESOS Issuance of perpetual capital securities Acquisition of subsidiaries Transfer to general reserve Dividend paid/ payable At 31 December 2015	484,125 - - 47,562 67,489 8,797 - - - -	- - - - - - 242,055 - - -	4,469 - - - - - - - 861 -	2,096 - - - - - - - - -	13,515 - 6,930 - - - - - - -	8,707 - - - (8,707) - - - - -	34,932 (5,054) - - - - - - - -	160,816 40,762 - - - - - - (861) (6,746)	708,660 35,708 6,930 47,562 58,782 8,797 242,055 - - (6,746)	32,685 1,848 - - - - - 4,475 - -	741,345 37,556 6,930 47,562 58,782 8,797 242,055 4,475 - (6,746)
		607,973	242,055	5,330	2,096	20,445	-	29,878	193,971	1,101,748	39,008	1,140,756

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		Share capital $’000	Perpetual capital securities $’000	Share option reserve $’000	Convertible bonds reserves $’000	Currency translation reserve $’000	Retained earnings $’000	Total $’000
	Company At 1 January 2016 Total comprehensive income for the period Recognition of share- based payment Issuance of shares on exercise of ESOS Issuance of perpetual capital securities Perpetual capital securities issuance expense Dividend At 31 December 2016
		607,973 - - 90 - - -	242,055 - - - 242,037 (2,842) -	20,445 - 7,337 - - - -	- - - - - - -	4,415 2,745 - - - - -	4,353 45,382 - - - - (26,814)	879,241 48,127 7,337 90 242,037 (2,842) (26,814)
		608,063	481,250	27,782	-	7,160	22,921	1,147,176

		Share capital $’000	Perpetual capital securities $’000	Share option reserve $’000	Convertible bonds reserves $’000	Currency translation reserve $’000	Retained earnings $’000	Total $’000
	Company At 1 April 2015 Total comprehensive income for the period Recognition of share- based payment Issuance of share capital Issuance of perpetual capital securities Issuance of shares on conversion of convertible bonds Issuance of shares on exercise of ESOS Dividend At 31 December 2015
		484,125 - - 47,562 - 67,489 8,797 -	- - - - 242,055 - - -	13,515 - 6,930 - - - - -	8,707 - - - - (8,707) - -	18,939 (14,524) - - - - - -	6,373 4,726 - - - - - (6,746)	531,659 (9,798) 6,930 47,562 242,055 58,782 8,797 (6,746)
		607,973	242,055	20,445	-	4,415	4,353	879,241

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• 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

During the period, there were no change in the company’s share capital.

The total number of shares that may be issued on conversion of all the outstanding employee shares options were 53,592,500 (31 December 2015: 53,875,500).

The perpetual capital securities comprised USD355 million (31 December 2015: USD175 million) issued at 5.45% per annum

• 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

	31/12/2016	31/12/2015
Total numberof issues shares (‘000)	1,127,928	1,127,765

The company does not have any treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

• 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasure shares as at the end of the current financial period reported on.

There were no sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.

The figures have not been audited or reviewed.

3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied.

The accounting policies and methods of computation are the same as in the Company’s audited consolidated financial statements for the financial year ended 31 December 2015.

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5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

There is no change in the accounting policies and methods of computation.

6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.

	Group 12 months ended 31/12/2016	Group 9 months ended 31/12/2015
Net profit attributable to shareholders of the Company ($’000)	99,312	40,762
Weighted average number of shares in issue (in‘000) for computation of Basic EPS	1,127,844	1,115,504
Earnings per share (cents)-Basic	8.81	3.65
Weighted average number of shares in issue (in‘000) for computation of Diluted EPS	1,181,437	1,169,380
Earnings pershare (cents)– Diluted	8.41	3.49

Adjusted EPS	Group 12 months ended 31/12/2016	Group 9 months ended 31/12/2015
Net profit attributable to shareholders of the Company adjusted for dividends attributable to perpetual capital securities ($’000)	76,558	39,649
Weighted average number of shares in issue (in ‘000) for computation of Basic EPS	1,127,844	1,115,504
Earnings per share (cents)-Basic	6.79	3.55
Weighted average number of shares in issue (in ‘000) for computation of Diluted EPS	1,181,437	1,169,380
Earnings per share (cents)–Diluted	6.48	3.39

For the purpose of calculating diluted EPS, assumption was made that all the employee share options issued will be converted to ordinary shares.

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the:-

• (a) current financial period reported on; and

• (b) immediately preceding financial year.

	Group 31/12/2016	Group 31/12/2015	Company 31/12/2016	Company 31/12/2015
Net asset value ($’000)	1,495,518	1,140,756	1,147,176	879,241
Net asset value per share (cents)	132.59	101.15	101.71	77.96

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The net asset value per share is calculated based on the issued share capital of 1,127,927,588 (31 December 2015: 1,127,765,088).

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. It must include a discussion of the following:(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

Statement of comprehensive income

The Group’s revenue for the current year was $544.6 million, which was $208.6 million or 62.1% higher than last corresponding year ended 31 December 2015 of $336.0 million. The breakdown of the revenue was as follows:

	Group 12 months ended 31/12/2016 $’million	Group 12 months ended 31/12/2015 $’million	% increase/ (decrease)
Engineering revenue	318.8	124.6	155.9
Treatment revenue	165.8	134.9	22.9
Membrane sale	60.0	76.5	(21.6)
Total	544.6	336.0	62.1

The increase was mainly due to the engineering business from $124.6 million to $318.8 million, representing an increase of $194.2 million or 155.9%.

	Group 12 months ended 31/12/2016 $’million	Group 12 months ended 31/12/2015 $’million
Engineeringrevenue	318.8	124.6
Membrane sale	60.0	76.5
Total	378.8	201.1
Changesin inventories	2.6	(3.0)
Material purchased, consumables used and subcontractors’fees*	(233.1)	(118.5)
Gross profit	148.3	79.6
GP margin (%)	39.1	39.6

Materials purchased, consumables used and subcontractors’ fees increased to $233.1 million from $118.5 million, representing an increase of $114.6 million or 96.7% as compared to the last corresponding year ended 31 December 2015. The increase was mainly due to the increase in engineering revenue to $318.8 million from $124.6 million, representing an increase of $194.2 million or 155.9% as compared to the last corresponding year ended 31 December 2015. Gross profit margin maintained at 39.1%.

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• Material purchased, consumables used and subcontractors’ fees related to engineering and membrane division only.

Other operating expenses increased from $40.3 million to $49.6 million, representing an increase of $9.3 million or 23.0% as compared to the last corresponding year ended 31 December 2015. The increase was mainly due to the higher operating costs for the operation and maintenance of increased number of treatment plants; impairment loss on non-current assets held-for-sale of $2.5 million; and loss on disposal of service concession receivable of $2.0 million during the year.

The Group generated a net profit of $102.0 million as compared to $51.5 million for the last corresponding year ended 31 December 2015, representing an increase of $50.5 million or 98.1%.

Statement of financial position

The Group’s non-current assets increased from $1,200.1 million as at 31 December 2015 to $1,598.4 million as at 31 December 2016. The increase was mainly due to the addition of service concession receivables and property, plant and equipment during the financial year.

The Group’s current liabilities decreased to $528.6 million as at 31 December 2016 from $584.7 million as at 31 December 2015. The decrease was mainly due to the repayment of short-term bank loans of $258.4 million and redemption of short-term medium term notes of $99.0 million during the year. The decrease was offset by an increase in trade payables from $140.7 million as at 31 December 2015 to $310.0 million as at 31 December 2016. The increase was mainly due to higher engineering revenue generated during the year.

The Group’s non-current liabilities increased from $447.5 million to $525.9 million. The increase was mainly due to higher longer tenure bank loans being used to finance the investment projects.

The Group’s total equity increased from $1,140.8 million as at 31 December 2015 to $1,495.5 million as at 31 December 2016. The increase was mainly due to the issuance of perpetual capital securities of USD180 million.

Statement of cash flow

The net cash generated from financing activities of the group decreased to $55.9 million for the year ended 31 December 2016 as compared to $635.2 million for the last corresponding period ended 31 December 2015. The decrease was mainly due to the repayment of short-term bank loans of $258.4 million and redemption of short-term medium term notes of $99.0 million during the year.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

No forecast or prospect statement has been previously disclosed to shareholders.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

China Central Government remains focused in its efforts to improve the overall quality of the water environment of the whole country and to restore the functions of the water ecological system. Action

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plans by the government to tackle pollution problems open up doors to new business opportunities for CEL in the following areas:

• a. River rehabilitation and restoration ( 河道治理和修复 ) for cities;

• b. Hazardous waste/sludge treatment and management; and

• c. Circular economy ( 循环经济 ), mainly in industrial parks, to minimize the discharge to the environment and maximize the reuse and recycling of limited resources to achieve efficient and self-sustained industrial economy.

The Company believes that these are strategic growth areas with good business potentials and CEL is equipped with the technological know-how and competitive advantage to pursue these projects.

The Company secured its first river restoration project in Yixing, Jiangsu; its first hazardous waste and sludge treatment and management projects in Rizhao, Shandong and Changyi Shandong respectively; and its first project involving circular economy in Chaonan, Guangdong.

Update of the use of proceeds

	$ million
Unutilised balance as at last quarterly announcement	263
Investment in water projects
-Chaonan Shantou	(64)
-Rudong	(29)
-Yixing river restoration	(48)
Investment in hazardous waste project-Rizhao	(12)
Investment in membrane facilities	(15)
Unutilised balance as at date of announcement	95

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? Yes

Name of Dividend	Final	Special	Total
Dividend Type	Final	Special	Total
Dividend Amount per Share	0.75*	0.25*	1.00*
(in cents)
Optional:- Dividend Rate (in %)		N/A
Par value of shares		N/A
Tax Rate		Tax exempt

* this is based on the post-split share base as at the date of announcement of 2,251,797,476.

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? Yes

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Name of Dividend	Final
Dividend Type	Final
Dividend Amount per Share (in cents)	0.36
Optional:- Dividend Rate (in %)	N/A
Par value of shares	N/A
Tax Rate	Tax exempt

(c) Date payable

To be announced at a later date.

(d) Books closure date

Notice of books closure date for determining shareholders’ entitlement of the proposed dividend will be announced at a later date.

12. If no dividend has been declared/recommended, a statement to that effect.

Final dividends have been declared/recommended.

13. Related parties and interested person transactions

The Group does not have a general mandate from shareholders for interested person transactions pursuant to Rule 920 of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”).

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PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results)

14. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year.

12 months ended 31 December 2016

	Engineering	Treatment	Membrane	Elimination	Total
	$’000	$’000	$’000	$’000	$’000
Revenue
Sales	327,147	165,791	75,285	(23,668)	544,555
Results
Segment result	88,453	73,672	26,316	(23,668)	164,773
Finance costs					(39,573)
Unallocated corporate expenses					(3,039)
Gain on disposal of subsidiary					873
Loss on disposal of property, plant and equipment					(26)
Loss on disposal of service concession					(2,043)
Impairment loss on disposal of subsidiary					(2,494)
Foreign currency exchange gain					2,934
Share ofprofit ofjoint venture					6,814
Interest income					3,138
Profit before income tax					131,357
Income taxexpense					(29,401)
Net profit for the year					101,956
Other information
Segment assets	509,086	1,422,150	399,751		2,330,987
Unallocated corporate assets					219,054
Consolidated total assets					2,550,041
Segment liabilities	386,584	371,979	33,790		792,353
Unallocated corporate liabilities					262,170
Consolidated total liabilities					1,054,523
Addition to non-current assets	308	435,370	2,737		438,415
Depreciation and amortisation	264	14,008	7,793		22,065

16

9 months ended 31 December 2015

	Engineering	Treatment	Membrane	Elimination	Total
	$’000	$’000	$’000	$’000	$’000
Revenue
Sales	119,809	106,460	68,894	(20,402)	274,761
Results
Segment result	20,132	51,606	33,729	(20,402)	85,065
Finance costs					(29,212)
Unallocated corporate expenses					(2,766)
Foreign currency exchange gain					3,111
Share of loss of associates					(3)
Interest income					5,276
Profit before income tax					61,471
Income tax expense					(18,861)
Net profit for the year					42,610
**Other information **
Segment assets	275,718	1,119,249	415,693		1,810,660
Unallocated corporate assets					362,226
Consolidated totalassets					2,172,886
Segment liabilities	288,092	268,435	47,372		603,899
Unallocated corporateliabilities					428,231
Consolidated total liabilities					1,032,130
Additiontonon-current assets	132	250,586	23,328		274,046
Depreciation and amortisation	231	9,233	6,498		15,962

Segment assets represent property, plant and equipment, service concession receivables, associates, intangible assets, goodwill, inventories, trade and other receivables and bank balances and cash, which are attributable to each operating segments. Segment liabilities represent trade and other payables and bank borrowings, which are attributable to each operating segments.

Unallocated corporate assets mainly represent the Group’s investment holding entities’ cash and bank balances and other financial assets.

Unallocated corporate liabilities represent the Group’s investment holding entities’ finance leases, bank loans, deferred tax liabilities and, medium term notes and convertible bonds at corporate level.

Analysis by Geographical Segments (Secondary segment)

The geographical locations of the customers of the Group principally comprise the People’s Republic of China (“PRC”), United States of America (“USA”) and Malaysia.

The Group’s revenue from external customers and information about its non-current assets by geographical location are detailed below:

17

12 months ended 31 December 2016

	Revenue from external customers $’000	Non-current assets $’000
PRC	521,715	1,568,610
Singapore	-	28,292
Malaysia	19,507	1,545
USA	3,333	-
Total	544,555	1,598,447

9 months ended 31 December 2015

	Revenue from external customers $’000	Non-current assets $’000
PRC	264,008	1,168,870
Singapore	-	29,676
Malaysia	8,193	1,600
USA	2,560	-
Total	274,761	1,200,146

Non-current assets information presented above mainly consist of prepaid lease, property, plant and equipment, service concession receivables, intangible assets, club memberships, goodwill, associates and deferred tax assets.

Information about major customers

There were no revenue from major customers which accounts for 10% of more of the Group’s revenue.

15. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.

Business segment analysis

12 months ended 31 December 2016 vs 9 months ended 31 December 2015

The segment revenue from the engineering business increased to $327.1 million from the last corresponding period of $119.8 million, representing an increase of $207.3 million or 173.1%. The segment result increased from $20.1 million to $88.4 million, representing an increase of $68.3 million or 339.4%.

The segment revenue from the treatment business increased to $165.8 million from the last corresponding period of $106.5 million, representing an increase of $59.3 million or 55.7%. The segment result increased from $51.6 million to $73.7 million, representing an increase of $22.1 million or 42.8%. With the increase in the treatment capacity of the current plants and the additions to the treatment capacity arising from the newly acquired plants in the coming year, the Group expects the contribution from the treatment business to continue its uptrend going forward.

The segment revenue from the membrane business increased to $75.3 million from the last corresponding period of $68.9 million, representing an increase of $6.4 million or 9.3%. The segment result decreased from $33.7 million to $26.3 million, representing a decrease of $7.4 million or 22.0%.

18

Geographical segment analysis

PRC segment remained the major contributor for our Group’s revenue due to the greater market and demand for our advanced membrane technology for the treatment and recycling of wastewater.

16. A breakdown of sales.

	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000	% increase (decrease)
Breakdownof sales
Sales reported for first half year	239,440	154,729	54.7
Operating profit after tax reported for first half year	35,531	18,705	90.0
Sales reported for second half year	305,115	120,032*	154.2
Operating profit aftertax reportedforsecondhalfyear	66,425	23,905*	177.9

• • the sales and operating profit after tax reported for second half year pertained to the period from 1 October 2015 to 31 December 2015.

17. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year and its previous full year.

	Group 12 months ended 31/12/2016 $’000	Group 9 months ended 31/12/2015 $’000
Total annual dividend
Ordinary	4,053	5,633
Perpetual capital securities	22,761	1,113

18. Persons occupying managerial positions who are related to the directors, Chief Executive Officer or substantial shareholders

Not applicable

19

CONFIRMATION THAT THE ISSUER HAS PROCURED UNDERTAKINGS FROM ALL ITS DIRECTORS AND EXECUTIVE OFFICERS

The Company confirms that it has procured undertakings from all its directors and executive officers in the format set out in Appendix 7.7 under Rule 720(1) of the Listing Manual

BY ORDER OF THE BOARD

Lotus Isabella Lim Mei Hua Company secretary 1 March 2017

20

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MEDIA RELEASE

CITIC Envirotech Ltd

Company Registration No: 200306466G Company Address: 10 Science Park Road #01-01 The Alpha Singapore 117684 Tel: (65) 6774 7298 Fax: (65) 6774 8920

Immediate Release

CITIC Envirotech recorded its highest revenue and net profit of S$102 million for the financial year ended 31 December 2016

• Full-year net profit after tax doubled from S$51.5 million to S$102.0 million

• Total revenue increased by S$208.6 million or 62.1% to S$544.6 million

Singapore, 1 March 2017 – Mainboard-listed CITIC Envirotech Ltd (“CEL” or “Group”), a leading membrane-based water treatment solutions provider reported a two-fold increase in its full-year net profit after tax of S$102.0 million on the back of a significant increase of 62.1% in its revenue, which rose by S$208.6 million to S$544.6 million.

The increase was mainly due to the engineering business, which rose from S$124.6 million to S$318.8 million, representing an increase of S$194.2 million or 155.9%. The Company continues its growth momentum in the recurring water treatment business segment and its recurring water treatment revenue increased S$30.9 million or 22.9% to S$165.8 million for the year ended 31 December 2016 as compared to the last corresponding year ended 31 December 2015.

During the financial year, the Company issued USD180 million perpetual capital securities with effective coupon of 4.25%. Partial of the proceeds were used to repay the first S$100 million 7.25% Medium Term Notes (“MTN”). The Company continues to explore various channels of financing to lower its overall cost of borrowings in order to stay competitive in this capital-intensive water industry.

For the financial year ended 31 December 2016, the Board of Directors has proposed a final dividend of 0.75 Singapore cent and a special dividend of 0.25 Singapore cent per ordinary share.

* this is based on the post-split share base as at the date of announcement of 2,251,797,476.

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MEDIA RELEASE

CITIC Envirotech Ltd

Company Registration No: 200306466G Company Address: 10 Science Park Road #01-01 The Alpha Singapore 117684 Tel: (65) 6774 7298 Fax: (65) 6774 8920

Financial Highlights

		12 months	12 months**
		ended 31/12/2016	ended 31/12/2015	Change (S$ ’Mil)	Change (%)
		(S$’Mil)	(S$’Mil)
-	Engineering	318.8	124.6	194.2	155.9
-	Membrane	60.0	76.5	(16.5)	(21.6)
-	Treatment	165.8	134.9	30.9	22.9
Total	Revenue	544.6	336.0	208	62.1
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)		190.0	129.9	60.1	46.3
Net profit for the year		102.0	51.5	50.5	98.1

**During the last financial period, the Company changed its financial year end from 31 March to 31 December. The 12-month statement of comprehensive income of the Group for the period from 1 January 2015 to 31 December 2015 is included for comparison purposes.

Outlook

In 2016, CEL witnessed a year of dynamic growth and expansion where key milestones were achieved when the Group secured new projects in river restoration, sludge and hazardous waste treatment. The Group also made good headway when it secured its first circular economy PublicPrivate- Partnership project in Shantou Chaonan, Guangdong Province, to provide a fully-integrated development project to achieve an efficient and self-sustained economy within the Shantou Chaonan industrial park.

The organic growth of the company’s business in these strategic areas are in line with the China central government’s overall plan to push for more stringent environmental policies and directives to combat water pollution, improve water ecological protection and water resource conservation and treatment. Also the Group continues to generate stable and recurring revenue from its investment in wastewater treatment plants to improve its bottom line.

Looking ahead in 2017, the Group is confident that with the tremendous opportunities present in the water and environmental sector, the Company will continue to secure large-scale and rewarding contracts to significantly boost the Company’s financial performance.

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MEDIA RELEASE

CITIC Envirotech Ltd

Company Registration No: 200306466G Company Address: 10 Science Park Road #01-01 The Alpha Singapore 117684 Tel: (65) 6774 7298 Fax: (65) 6774 8920

About CITIC Envirotech Ltd.

CITIC Envirotech Ltd (“CEL”, “Group”), formerly known as United Envirotech Ltd, is a leading membranebased integrated environmental solutions provider which specialises in the manufacturing of high quality membrane products and the application of membrane technologies for water and wastewater treatment and recycling. Its principal activities also include design, fabrication, installation and commissioning of water and wastewater systems using its proprietary advanced membrane technologies such as the Membrane Bioreactor (MBR) technology. CEL has designed and built several of the largest industrial wastewater treatment plants in Asia using the MBR technology. CEL undertakes both turnkey and water investment projects (TOT/BOT/BOO), as well as provides treatment plant operation and maintenance services. Through its wholly-owned subsidiary, Memstar Pte Ltd, the Group is one of the largest PVDF hollow fibre membrane manufacturers in the world.

CEL serves a strong prominent customer base such as petrochemical giants like China Petrochemical Corporation (“Sinopec”), China National Petroleum Corporation (“CNPC”), China National Offshore Oil Corporation (“CNOOC”), industrial parks and municipalities.

In August 2011, KKR became a strategic investor of CEL after injecting a US$113.8 million convertible bond investment and follow-on equity investment of US$40 million in January 2013. KKR is a leading global investment firm with about US$ 126 billion in assets under management as at 31 March 2016.

In April 2015, CITIC joined KKR as a strategic investor of CEL and became its largest shareholder after making a joint voluntary unconditional offer with KKR. CITIC Limited is China’s largest conglomerate operating domestically and overseas, with businesses in financial services, resources and energy, manufacturing, engineering, contracting and real estate, as well as other services.

In November 2016, CRF Envirotech Co., Ltd. completed the acquisition of the entire stake held by KKR China Water Investment Limited in CITIC Envirotech Ltd, and became its second largest shareholder owning a 23.85% stake. CRF Envirotech Co., Ltd is a joint venture between CRF Envirotech Fund L.P. and China Reform Soochow Overseas Fund I L.P., which are in turn sponsored mainly by China Reform Holdings Corporation Ltd (“CRHC”). CRHC, a wholly stated-owned investment company plays a unique and crucial role in China's state-owned assets management and restructuring process.

CEL was listed on SGX Mainboard on 22 April 2004. For more information, please log on www.citicenvirotech.com

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Issued by CITIC Envirotech Ltd.