CITIC Limited — Capital/Financing Update 2018

Aug 13, 2018

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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VOLUNTARY ANNOUNCEMENT

PUBLICATION OF THE PROSPECTUS FOR THE PROPOSED ISSUANCE OF SUPER SHORT-TERM COMMERCIAL PAPERS

AT THE NATIONAL ASSOCIATION OF FINANCIAL MARKET INSTITUTIONAL INVESTORS BY

CITIC CORPORATION LIMITED, A WHOLLY OWNED SUBSIDIARY OF CITIC LIMITED

CITIC Corporation Limited (“ CITIC Corporation ”), a wholly-owned subsidiary of CITIC Limited (the “ Company ”, together with its subsidiaries, the “ Group ”), proposed to issue 2018 first tranche super short-term commercial papers (the “ Super Short-Term Commercial Papers ”). CITIC Corporation has published a prospectus for the issuance of the 2018 first tranche Super Short-Term Commercial Papers (the “ Prospectus ”) at the National Association of Financial Market Institutional Investors (“ NAFMII ”).

I. Relevant Status of the Super Short-Term Commercial Papers

Basic Terms: the Super Short Term Commercial Papers will adopt a fixed interest rate and be issued based on its par value. The coupon rate shall be determined upon consensus among CITIC Corporation, the lead underwriter and the joint lead underwriters pursuant to the results of centralized book building. The total registered issue amount is 30 billion[1] and the proposed current tranche issue amount shall be 3 billion. The proposed term of issuance shall be 270 days.

1 Unless otherwise specified, the amounts hereunder shall be RMB-denominated.

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Information Disclosure: according to the related guidelines and regulations of NAFMII, the Prospectus has been disclosed on the designated websites of NAFMII on 13 August 2018. The Prospectus contains certain information on CITIC Corporation, its subsidiaries and its investee companies which had not been previously disclosed. The Company is issuing this voluntary announcement to keep its shareholders and potential investors informed of such information.

II. Initially Disclosed Information on the Super Short-Term Commercial Papers

1. Information on CITIC Corporation

(i) Main Business

Operating revenue, operating costs and gross profit of CITIC Corporation for the three months ended 31 March 2018 (Unit: hundred million):

	Operating Revenue	Operating Revenue	Operating costs	Operating costs	Gross profit ofMain Businesses	Gross profit ofMain Businesses
Business						Gross
segments	Value	Percentage(%)	Value	Percentage(%)	Grossprofit	profitmargin
						(%)
Financial	410.00	63.19	-	-	-	-
Resources andEnergy	98.88	15.24	93.13	45.20	5.75	5.82
Manufacturing	80.84	12.46	68.82	33.40	12.02	14.87
EngineeringContracting	15.64	2.41	13.17	6.39	2.47	15.79
Real Estate	14.97	2.31	7.13	3.46	7.84	52.37
Other Industries	30.94	4.77	23.79	11.55	7.15	23.11
Operation andManagement	-0.58	-0.09	-	-	-	-
Inter-divisionoffsetting	-1.85	-0.29	-0.01	-	-	-
Total	648.84	100.00	206.03	100.00	-	-

Note: As the operating revenue of the financial segment of CITIC Corporation is presented in a net amount of income minus costs (e.g. net interest income equals interest income minus interest expenses), the operating costs of financial services segment are not presented separately. Others segment includes information services, trading business and sewage treatment services; operation management mainly represents the operating income generated from CITIC Corporation (head office only).

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2. Financial Conditions of CITIC Corporation’s Relevant Business Segments

(i) Financial Services

(1) Trust

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Trust Co., Ltd. (“ CITIC Trust ”) were 39,244 million, 16,118 million and 23,126 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Trust were 1,131 million, 581 million and 520 million, respectively.

(2) Insurance

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Prudential Life Insurance Co., Ltd. (“ CITIC Prudential ”) were 66,114 million, 60,995 million and 5,119 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Prudential were 4,921 million, 466 million and 326 million, respectively.

(ii) Non-financial Services

(1) Engineering Contracting

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Construction Co., Ltd. (“ CITIC Construction ”) were 34,403 million, 24,320 million and 10,083 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Construction were 804 million, 159 million and 122 million, respectively.

(2) Real Estate

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Urban Development & Operation Co., Ltd. ( “CITIC Urban ”) were 18,559 million, 11,188 million and 7,371 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Urban were 1,385 million, 671 million and 479 million, respectively.

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Industrial Group Corporation Limited (“ CITIC Industrial ”) were 40,013 million, 20,743 million and 19,270 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Industrial were 8,037 million, 466 million and 400 million, respectively.

(3) Resources and Energy

As of 31 March 2018, the total assets, total liabilities and net assets of CITIC Metal Co., Ltd. (“ CITIC Metal ”) were HK$30,912 million, HK$14,961 million and HK$15,951 million respectively; for the three months ended 31 March 2018, the operating revenue, gross profit and net profit of CITIC Metal were HK$11,207 million, HK$512 million and HK$367 million, respectively.

3. Credit Facilities

As of 31 March 2018, the aggregate credit facilities granted to CITIC Corporation at the head office level amounted to 102.3 billion, of which 83.0 billion is available for drawdown.

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4. Other Substantial Matters

Asset encumbrance

Major asset encumbrances created by major subsidiaries of CITIC Corporation as of 31 March 2018 are listed as follows:

Major mortgage or pledge of assets created and other restrictive arrangement made Name of entities by major subsidiaries as of 31 March 2018

CITIC Metal

CITIC Industrial

Pledge on long-term equity investment with a value of 5,764 million as collateral for bank loans to unconsolidated participating companies

Mortgage cum pledge on pier, land and long-term equity investment with a value of 749 million as collateral for banks loans

Mortgage on helicopters with an aggregate value of 1,112 million as collateral for bank CITIC Offshore loans; mortgage on helicopters with an aggregate value of 387 million as collateral for Helicopter Co., financial lease; accounts receivable with a value of 371 million as underlying asset for Ltd. issue of AR-backed bills

CITIC Dicastal Pledge on deposit certificate with a value of 140 million as collateral for banks loans Co., Ltd.

Shareholders and investors are hereby reminded that certain financial information included in this announcement was prepared in accordance with the generally accepted accounting principles of the PRC, which may require adjustment during the course of auditing. In addition, the information contained therein is limited solely to the consolidated operation of CITIC Corporation, which does not provide a full picture of the operation status of the Group.

Potential investors and shareholders of the Company are hereby reminded that certain financial information mentioned above has not been reviewed or audited by the Company’s independent auditors. Differences may arise between such financial information and the data disclosed in audited reports due to review and auditing adjustment. Potential investors and shareholders of the Company should exercise caution when dealing with the securities of the Company and should not rely solely on such information.

By Order of the Board CITIC Limited Ricky Choy Wing Kay Wang Kang Joint Company Secretaries

Hong Kong, 13 August 2018

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. Song Kangle, Ms. Yan Shuqin, Mr. Liu Zhuyu, Mr. Peng Yanxiang, Mr. Liu Zhongyuan, Mr. Yang Xiaoping and Mr. Wu Youguang; 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. Paul Chow Man Yiu and Mr. Shohei Harada.

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