CITIC Limited — Interim / Quarterly Report 2016

Apr 28, 2016

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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ANNOUNCEMENT

UNAUDITED FINANCIAL STATEMENTS OF CITIC CORPORATION LIMITED FOR THE THREE MONTHS ENDED 31 MARCH 2016

This announcement is made by CITIC Limited (the “ Company ”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the laws of Hong Kong).

CITIC Corporation Limited (“ CITIC Corporation ”), a wholly-owned subsidiary of the Company, is a company incorporated in the People’s Republic of China (“ PRC ”). As CITIC Corporation issued medium-term notes and super & short-term commercial paper in the PRC, it is required to announce the financial statements of itself and its subsidiaries on a quarterly basis prepared in accordance with the PRC Generally Accepted Accounting Principles in accordance with the relevant regulations of the People’s Bank of China and the National Association of Financial Market Institutional Investors.

1

The unaudited financial statements of CITIC Corporation for the three months ended 31 March 2016 are available on China Bond, China Money and Shanghai Clearing House at www.chinabond.com.cn, www.chinamoney.com.cn and www.shclearing.com, respectively, and are set out at the end of this announcement.

By Order of the Board CITIC Limited Chang Zhenming Chairman

Hong Kong, 28 April 2016

As at the date of this announcement, the executive directors of the Company are Mr Chang Zhenming (Chairman), Mr Wang Jiong, Ms Li Qingping and Mr Pu Jian; the non-executive directors of the Company are Mr Yang Jinming, Mr Liu Yeqiao, Mr Song Kangle, Ms Yan Shuqin, Mr Liu Zhongyuan, Mr Yang Xiaoping and Mr Li Rucheng; and the independent non-executive directors of the Company 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.

2

Consolidated Balance Sheet (Unaudited)

as at 31 March 2016

CITIC Corporation Limited	Expressed in Renminbi '000	Expressed in Renminbi '000
	31 March 2016	31 December 2015
Cash and deposits	681,563,489	647,936,658
Placements with banks and non-bank financial institutions	122,991,264	118,776,469
Financial assets at fair value through profit or loss	66,700,109	33,838,474
Derivative financial instruments	14,422,624	13,828,942
Trade and other receivables	94,345,078	99,622,204
Inventories	17,900,930	83,251,626
Financial assets held under resale agreements	7,406,906	138,560,904
Loans and advances to customers and other parties	2,609,655,399	2,470,554,618
Available-for-sale financial assets	443,857,652	414,237,392
Held-to-maturity investments	195,996,357	181,184,502
Investments classified as receivables	1,294,979,075	1,115,320,332
Long-term equity investments	48,251,518	46,426,492
Investment properties	4,273,547	5,086,392
Fixed assets	35,841,385	35,878,772
Construction in progress	5,631,511	6,330,887
Intangible assets	23,418,452	24,028,225
Goodwill	8,163,453	7,593,756
Deferred tax assets	10,426,166	10,714,176
Assets classified as held for sale	99,456,662	-
Other assets	46,261,565	18,152,000
Total assets	5,831,543,142	5,471,322,821

Consolidated Balance Sheet (Unaudited) (continued)

as at 31 March 2016

CITIC Corporation Limited	Expressed in Renminbi '000	Expressed in Renminbi '000
	31 March 2016	31 December 2015
Borrowing from central banks	82,000,000	37,500,000
Placements from banks and non-bank financial institutions	42,743,713	48,709,652
Financial liabilities at fair value through profit or loss	304,602	-
Derivative financial instruments	14,060,468	12,180,375
Trade and other payables	149,267,577	179,040,427
Financial assets sold under repurchase agreements	15,772,659	71,168,274
Deposits from banks and non-bank financial institutions and customers	4,561,138,263	4,231,071,066
Employee benefits payable	11,377,675	13,989,248
Taxes payable	10,522,927	9,701,344
Bank and other loans	39,402,887	70,076,260
Debt instruments issued	385,248,306	341,336,376
Provisions	1,140,056	1,163,077
Deferred tax liabilities	1,724,776	2,394,979
Liabilities classified as held for sale	61,533,747	-
Other liabilities	10,114,231	15,821,613
Total liabilities	5,386,351,887	5,034,152,691
Paid-in capital	139,000,000	139,000,000
Capital reserve	36,548,398	38,050,059
Other comprehensive income	2,744,947	3,266,332
Surplus reserve	4,718,187	4,718,187
Gerneral reserve	29,708,529	29,708,529
Retained earnings	97,232,048	89,660,183
Total equity attributable to owners of the Company	309,952,109	304,403,290
Non-controlling interests	135,239,146	132,766,840
Total owners'equity	445,191,255	437,170,130
Total liabilities and owners'equity	5,831,543,142	5,471,322,821

Consolidated Income Statement (Unaudited)

for the three months ended 31 March 2016

CITICCorporationLimited	Expressed in Renminbi '000	Expressed in Renminbi '000
	2016	2015
Operating income	58,573,636	59,370,950
Less: Total operating costs	43,721,073	36,542,131
Including: Operating costs	14,320,797	14,153,468
Business taxes and surcharges	2,860,227	3,226,157
Selling and distribution expenses	656,262	622,261
General and administrative expenses	11,444,848	10,720,053
Financial expenses	1,020,817	874,622
Impairment losses	13,418,122	6,945,570
Add: Gains/(Loss) from changes in fair value	-3,899	10,151
Investment income	398,832	214,742
Operating profit	15,247,496	23,053,712
Add: Non-operating income	313,984	187,395
Less: Non-operating expenses	69,141	17,287
Profit before income tax	15,492,339	23,223,820
Less: Income tax expense	3,857,386	4,343,065
Net profit for the period	11,634,953	18,880,755
Attributable to:
Owners of the Company	7,570,865	15,230,636
Non-controlling interests	4,064,088	3,650,119

Consolidated Cash Flow Statement (Unaudited)

for the three months ended 31 March 2016

CITIC Corporation Limited	Expressed	in Renminbi '000
	2016	2015
Cash flows from operating activities
Cash received from sale of goods and rendering of services	19,383,309	19,851,583
Net decrease in deposits with banks and non-bank financial institutions	2,049,535	4,085,231
Net increase in deposits from customers	186,789,176	47,287,440
Net decrease in deposits with central banks	-	22,213,726
Net increase in borrowings from central banks	44,500,000	5,000,000
Net increase in deposits from banks and non-bank financial institutions	136,552,212	241,295,094
Interests, fee and commission received	65,911,263	59,224,604
Net decrease in placements with banks and non-bank financial institutions	2,136,128	132,824
Net decrease in financial assets held under resale agreements	132,498,665	21,995,654
Net increase in financial liabilities at fair value through profit or loss	304,602	-
Refund of taxes	103,958	281,163
Cash received from other operating activities	10,159,916	7,868,747
Sub-total of cash inflows from operating activities	600,388,766	429,236,066
Cash paid for goods and services	17,283,531	18,624,185
Net increase in loans and advances to customers and other parties	145,837,029	56,274,730
Net increase in deposits with central banks	26,059,993	-
Net increase in investment classified as receivables	180,237,129	260,036,842
Net increase in financial assets sold under repurchase agreements	55,395,264	35,097,651
Net decrease in placements from banks and non-bank financial institutions	6,486,178	2,152,620
Net increase in financial assets at fair value through profit or loss	25,676,126	13,949,561
Net decrease in financial liabilities at fair value through profit or loss	-	580,153
Interests, fee and commission paid	25,988,210	29,221,846
Cash paid to and on behalf of employees	10,373,034	10,511,112
Cash paid for various taxes	7,204,848	7,420,911
(Including: Income tax paid)	2,936,819	3,210,851
Cash paid for other operating activities	46,827,457	31,930,875
Sub-total of cash outflows from operating activities	547,368,798	465,800,486
Net cash flows from operating activities	53,019,968	(36,564,420)

Consolidated Cash Flow Statement (Unaudited) (continued)

for the three months ended 31 March 2016

CITIC Corporation Limited	Expressed	in Renminbi '000
	2016	2015
Cash flows from investing activities:
Cash received from disposal of financial investments	281,398,635	151,745,105
Cash received from returns on investments	584,321	410,147
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	61,677	51,606
Net cash received from disposal of subsidiaries, associates and joint ventures	16,018	2,052
Cash received from other investing activities	4,529,534	1,777,335
Sub-total of cash inflows from investing activities	286,590,186	153,986,245
Cash paid for acquisition of financial investments	320,962,841	162,963,150
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	4,663,669	1,494,474
Net cash payment for acquisition of subsidiaries, associates and joint ventures	3,913,051	35,570
Cash paid for other investing activities	26,280	9,044,540
Sub-total of cash outflows from investing activities	329,565,841	173,537,734
Net cash flows from investing activities	(42,975,655)	(19,551,489)
Cash flows from financing activities:
Cash received from capital contributions	75,000	14,229
(Including: Cash received by subsidiaries from non-controlling interests)	75,000	14,229
Cash received from new banks and other loans	11,612,964	18,851,828
Cash received from issuance of new debt instruments	141,595,138	47,012,760
Cash received from other financing activities	59,238	38,109
Sub-total of cash inflows from financing activities	153,342,340	65,916,926
Cash paid for repayment of banks and other loans and debt instruments issued	106,443,722	34,206,116
Cash paid for dividends, profit distributions or interest	3,741,971	3,026,825
(Including: Dividends and profits paid by subsidiaries to non-controlling interests)	174,243	203,112
Cash paid for other financing activities	200,576	39,980
Sub-total of cash outflows from financing activities	110,386,269	37,272,921
Net cash flows from financing activities	42,956,071	28,644,005
Effect of foreign exchange rate changes on cash and cash equivalents	(349,701)	1,464,293
Net increase/ (decrease) in cash and cash equivalents	52,650,682	(26,007,611)
Add: Cash and cash equivalents at the beginning of the period	268,389,704	256,196,670
Cash and cash equivalents at the end of the period	321,040,386	230,189,059

Balance Sheet (Unaudited)

as at 31 March 2016

CITIC Corporation Limited	Expressed in Renminbi '000	Expressed in Renminbi '000
	31 March 2016	31 December 2015
Cash and deposits	8,625,013	17,880,380
Financial assets at fair value through profit or loss	2,904,033	83,051
Trade and other receivables	15,320,143	15,750,596
Loans and advances to customers and other partie	33,780,062	35,444,338
Available-for-sale financial assets	10,425,022	10,526,115
Long-term equity investments	219,820,915	215,280,091
Fixed assets	636,666	644,738
Other assets	825	4,866
Total assets	291,512,679	295,614,175

Balance Sheet (Unaudited) (continued)

as at 31 March 2016

CITIC Corporation Limited		Expressed in Renminbi '000
	31 March 2016	31 December 2015
Trade and other payables	31,406,846	32,286,835
Taxes payable	582,226	605,118
Debt instruments issued	41,187,589	44,169,850
Provisions	700,000	700,000
Deferred tax liabilities	339,855	339,748
Other liabilities	4,765,446	4,866,051
Total liabilities	78,981,962	82,967,602
Paid-in capital	139,000,000	139,000,000
Capital reserve	50,268,921	50,268,921
Other comprehensive income	865,872	1,081,869
Surplus reserve	4,718,187	4,718,187
Retained earnings	17,677,737	17,577,596
Total owners' equity	212,530,717	212,646,573
Total liabilities and owners' equity	291,512,679	295,614,175

Income Statement (Unaudited)

for the three months ended 31 March 2016

CITIC Corporation Limited	Expressed in Renminbi '000	Expressed in Renminbi '000
	2016	2015
Operating income	824,422	11,272,840
Less: Total operating costs	724,281	5,860,304
Including: Business taxes and surcharges	30,575	540,989
General and administrative expenses	113,097	810,226
Financial expenses	580,609	429,669
Impairment losses	-	4,079,420
Operating profit	100,141	5,412,536
Add: Non-operating income	-	105
Less: Non-operating expenses
	-	-
Profit before income tax	100,141	5,412,641
Less: Income tax expense	-	546,286
Net profit for the period	100,141	4,866,355

Cash Flow Statement (Unaudited)

for the three months ended 31 March 2016

CITIC Corporation Limited	Expressed in Renminbi '000	Expressed in Renminbi '000
	2016	2015
Cash flows from operating activities：
Interests, fee and commission received	71,948	544,733
Cash received from other operating activities	811,585	3,552,716
Sub-total of cash inflows from operating activities	883,533	4,097,449
Cash paid for various taxes	456,754	44,930
Cash paid for other operating activities	119,443	70,523
Sub-total of cash outflows from operating activities	576,197	115,453
Net cash flows from operating activities	307,336	3,981,996
Cash flows from investing activities：
Cash received from disposal of investments	1,953,496	12,143,725
Sub-total of cash inflows from investing activities	1,953,496	12,143,725
Cash paid for acquisition of investments	7,446,922	8,520,949
Entrusted loans to subsidiaries	310,000	194,000
Cash paid for other investing activities	-	-
Sub-total of cash outflows from investing activities	7,756,922	8,714,949
Net cash flows from investing activities	(5,803,426)	3,428,776
Cash flows from financing activities：
Cash received from new bank and other loans	-	153,265
Sub-total of cash inflows from financing activities	-	153,265
Cash paid for repayment of bank and other loans and debt instruments issued	3,000,000	6,025,095
Interest paid	875,742	536,770
Cash paid for dividends or profit distributions	-	-
Sub-total of cash outflows from financing activities	3,875,742	6,561,865
Net cash flows from financing activities	(3,875,742)	(6,408,600)
Effect of foreign exchange rate changes on cash and cash equivalents	3,153	26,814
Net (decrease)/increase in cash and cash equivalents	(9,368,679)	1,028,986
Add: Cash and cash equivalents at the beginning of the period	15,777,831	4,901,897
Cash and cash equivalents at the end of the period	6,409,152	5,930,883