CITIC Limited — Interim / Quarterly Report 2022

Aug 31, 2022

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 SIX MONTHS ENDED 30 JUNE 2022

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 has issued enterprise bond and corporate bond in the PRC, it is required to announce the financial statements of itself and its subsidiaries prepared in accordance with the PRC Generally Accepted Accounting Principles periodically in accordance with the relevant regulations of the People’s Bank of China, National Development and Reform Commission, China Securities Regulatory Commission and Shanghai Stock Exchange.

The unaudited financial statements of CITIC Corporation for the six months ended 30 June 2022 are available on China Bond, China Money and Shanghai Stock Exchange at www.chinabond.com.cn, www.chinamoney.com.cn and www.sse.com.cn, respectively, and are set out at the end of this announcement.

By Order of the Board CITIC Limited Zhu Hexin Chairman

Hong Kong, 31 August 2022

As at the date of this announcement, the executive directors of the Company are Mr Zhu Hexin (Chairman), Mr Xi Guohua and Ms Li Qingping; the non-executive directors of the Company are Mr Song Kangle, Mr Peng Yanxiang, Ms Yu Yang, Mr Zhang Lin, Mr Yang Xiaoping and Mr Tang Jiang; and the independent non-executive directors of the Company are Mr Francis Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Mr Gregory Lynn Curl and Mr Toshikazu Tagawa.

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	30 June 2022	31 December 2021
Cash and deposits	875,578,187	571,189,415
Settlement reserve	41,227,595	-
Placements with banks and non-bank financial institutions	231,728,586	142,060,995
Margin accounts	111,408,963	-
Derivative financial instruments	64,261,882	22,738,297
Trade and other receivables	225,798,426	116,031,904
Contract assets	12,573,578	10,666,563
Inventories	47,758,921	34,999,727
Financial assets held under resale agreements	75,287,726	91,757,186
Loans and advances to customers and other parties	4,914,513,231	4,775,898,800
Investments in financial assets
- Financial assets held for trading	1,156,016,757	538,615,284
- Bond investments	1,085,968,822	1,173,928,734
- Other bond investments	758,116,365	648,510,309
- Other equity instruments investments	8,979,439	8,468,262
Long-term equity investments	70,191,672	79,505,605
Refundable deposits	68,035,128	-
Investment properties	11,386,934	9,850,633
Fixed assets	53,944,711	47,294,446
Construction in progress	10,632,035	8,122,111
Right-of-use assets	13,402,929	11,826,503
Intangible assets	25,942,843	17,871,603
Goodwill	19,110,560	7,267,808
Deferred tax assets	64,047,650	51,618,437
Other assets	38,852,126	33,992,768
Total assets	9,984,765,066	8,402,215,390

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	30 June 2022	31 December 2021
Borrowing from central banks	189,712,514	189,257,343
Customer brokerage deposits	304,424,846	-
Placements from banks and non-bank financial institutions	123,562,920	87,473,873
Financial liabilities held for trading	101,411,441	4,647,768
Derivative financial instruments	63,834,772	23,250,512
Trade and other payables	352,981,296	102,098,386
Contract liabilities	19,945,593	16,345,284
Financial assets sold under repurchase agreements	360,123,377	100,116,489
Deposits from banks and non-bank financial institutions and customers	6,130,050,610	5,961,517,503
Employee benefits payables	43,339,817	27,121,269
Taxes payable	13,410,640	15,902,662
Bank and other loans	53,809,875	35,944,752
Debt instruments issued	1,099,507,495	970,326,926
Lease liabilities	13,517,632	11,862,955
Provisions	24,224,510	19,099,913
Deferred tax liabilities	11,232,484	4,214,308
Other liabilities	16,673,231	14,760,853
Total liabilities	8,921,763,053	7,583,940,796
Paid-in capital	139,000,000	139,000,000
Capital reserve	38,533,704	40,192,177
Other comprehensive income	2,442,905	3,003,336
Surplus reserve	12,328,674	12,328,674
General reserve	51,526,412	51,320,806
Retained earnings	264,244,898	241,402,377
Total equity attributable to owners of the Company	508,076,593	487,247,370
Non-controlling interests	554,925,420	331,027,224
Total owners' equity	1,063,002,013	818,274,594
Total liabilities and owners' equity	9,984,765,066	8,402,215,390

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	Six months ended	Six months ended
	30 June 2022	30 June 2021
Operating income	179,106,635	151,154,352
Less: Total operating costs	127,646,655	112,410,871
Including: Operating costs	42,064,891	33,260,175
Taxes and surcharges	1,838,989	1,330,737
Selling and distribution expenses	1,213,590	845,281
General and administrative expenses	36,018,879	26,636,294
Research and development expenses	783,014	621,112
Financial expenses	1,161,808	(70,585)
Expected credit losses	44,212,401	49,290,926
Impairment losses	353,083	496,931
Add: (Loss)/Gain from changes in fair value	(684,823)	72,619
Investment income	13,400,656	675,416
Assets disposal (loss)/gain	(4,964)	1,556
Other gain	332,566	191,932
Operating profit	64,503,415	39,685,004
Add: Non-operating income	473,334	955,170
Less: Non-operating expenses	120,178	129,577
Profit before income tax	64,856,571	40,510,597
Less: Income tax expense	9,178,656	5,887,454
Net profit for the period	55,677,915	34,623,143
Owners of the Company	36,689,396	23,314,224
Non-controlling interests	18,988,519	11,308,919

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	Six months ended 30	Six months ended 30
	June 2022	June 2021
Cash flows from operating activities:
Cash received from sale of goods and rendering of services	53,946,900	35,310,541
Net decrease in deposits with banks and non-bank financial institutions	2,819,315	-
Net increase in deposits from customers	342,414,788	118,410,345
Net increase in deposits with central banks	-	15,734,456
Net decrease in margin accounts	1,142,706	-
Customer brokerage deposits received	30,917,026	-
Interests, fee and commission received	195,099,239	177,422,473
Net increase in placements from banks and non-bank financial institutions	8,576,647	11,315,597
Net increase in sales of repurchased financial assets	5,311,262	-
Net decrease in financial assets held under resale agreements	52,128,762	21,346,633
Net increase in financial liabilities held for trading	4,290,769	-
Refund of taxes	1,218,153	538,952
Cash received from other operating activities	21,603,961	12,045,670
Sub-total of cash inflows from operating activities	719,469,528	392,124,667
Cash paid for goods and services	48,752,119	36,948,853
Net increase in loans and advance to customers and other parties	171,752,693	253,761,465
Net decrease in borrowing from central banks	1,506,332	-
Net increase in deposits with central banks institutions	4,457,463	22,505,345
Net increase in deposits with banks and non-bank financial institutions	-	12,619,722
Net decrease in deposits from banks and non-bank financial institutions	188,433,669	63,077,878
Net increase in placements with banks and non-bank financial institutions	72,482,886	16,108,059
Net decrease in financial assets held under resale agreements	-	8,912,035
Net decrease in financial liabilities held for trading	-	7,829,300
Net increase in investments in financial assets held for trading	13,430,493	30,073,988
Interests, fee and commission paid	69,785,187	61,536,592
Cash paid to and on behalf of employees	28,787,014	23,180,535
Cash paid for various taxes	30,359,967	22,644,878
Cash paid for other operating activities	91,726,983	39,933,681
Sub-total of cash outflows from operating activities	721,474,806	599,132,331
Net cash flows from operating activities	(2,005,278)	(207,007,664)

CONSOLIDATED CASH FLOW STATEMENT (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	Six months ended 30	Six months ended 30
	June 2022	June 2021
Cash flows from investing activities:
Cash received from disposal of financial investments	1,360,258,801	1,688,966,918
Cash received from returns on investments	1,639,181	1,080,639
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	406,306	313,138
Net cash received from disposal of associates and joint ventures	5,467	47,994
Net cash received from disposal of subsidiaries	2,277	3,276
Net cash received from acquisition of subsidiaries	426,397,593	-
Cash received from other investing activities	159,398	314,599
Sub-total of cash inflows from investing activities	1,788,869,023	1,690,726,564
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	3,096,096	3,456,114
Cash paid for acquisition of financial investments	1,334,095,210	1,799,981,126
Net cash payment for acquisition of subsidiaries	-	200
Net cash payment for acquisition of associates and joint ventures	4,328,341	189,559
Cash paid for other investing activities	697,813	732,043
Sub-total of cash outflows from investing activities	1,342,217,460	1,804,359,042
Net cash flows from investing activities	446,651,563	(113,632,478)
Cash flows from financing activities:
Cash received from capital contributions	98,010	27,004
(Including: Cash received by subsidiaries from non-controlling interests)	98,010	27,004
Cash received from new banks and other loans	35,912,401	14,488,673
Cash received from issuance of new debt instruments	379,395,305	503,678,535
Cash received from issuance of preferred shares and other equity instruments	3,915,343	39,997,193
Cash received from other financing activities	647,986	95,588
Sub-total of cash inflows from financing activities	419,969,045	558,286,993
Cash paid for repayment of banks and other loans and debt instruments issued	466,449,205	350,043,635
Principal and interest elements of lease payment	2,077,339	1,792,729
Cash paid for dividends, profit distributions or interest	16,948,045	13,982,851
(Including: Dividends and profits paid by subsidiaries to non-controlling interests)	2,405,510	381,762
Transactions with non-controlling interests	-	-
Cash paid for other financing activities	94,460	17,183
Sub-total of cash outflows from financing activities	485,569,049	365,836,398
Net cash flows from financing activities	(65,600,004)	192,450,595
Effect of foreign exchange rate changes on cash and cash equivalents	4,765,683	(2,128,969)
Net increase/(decrease) in cash and cash equivalents	383,811,964	(130,318,516)
Add: Cash and cash equivalents at the beginning of the year	275,541,896	351,939,004
Cash and cash equivalents at 30 June	659,353,860	221,620,488

COMPANY BALANCE SHEET

AS AT 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	30 June 2022	31 December 2021
Cash and deposits	2,052,669	18,549,270
Trade and other receivables	41,140,332	26,499,277
Loans and advances to customers and other parties	4,642,984	1,210,692
Investments in financial assets
- Financial assets held for trading	33,467,859	34,161,339
Long-term equity investments	238,779,592	228,686,602
Fixed assets	464,565	487,360
Intangible assets	18,622	21,944
Other assets	4,746	7,341
Total assets	320,571,369	309,623,825
Trade and other payables	37,363,903	23,634,739
Taxes payable	1,665	-
Bank and other loans	8,006,628	3,003,700
Debt instruments issued	33,029,533	41,833,978
Deferred tax liabilities	922,785	993,043
Other liabilities	913,709	924,913
Total liabilities	80,238,223	70,390,373
Paid-in capital	139,000,000	139,000,000
Capital reserve	49,610,809	49,706,126
Other comprehensive income	1,812,196	1,812,196
Surplus reserve	12,328,674	12,328,674
Retained earnings	37,581,467	36,386,456
Total owners' equity	240,333,146	239,233,452
Total liabilities and owners' equity	320,571,369	309,623,825

COMPANY INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	Six months ended 30	Six months ended 30
	June 2022	June 2021
Operating income	16,158,510	12,961,356
Less: Total operating costs	1,361,351	1,762,126
Including: Taxes and surcharges	2,327	1,919
General and administrative expenses	501,871	456,017
Financial expenses	857,153	977,085
Expected credit losses	-	10,184
Impairment losses	-	316,921
Operating profit	14,797,159	11,199,230
Add: Non-operating income	-	705,004
Less: Non-operating expenses	120	40,036
Profit before income tax	14,797,039	11,864,198
Less: Income tax expense	(70,134)	(65,755)
Net profit for the period	14,867,173	11,929,953

Company Cash Flow Statement

FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

CITIC CORPORATION LIMITED		RMB'000
	Six months ended 30	Six months ended 30
	June 2022	June 2021
Cash flows from operating activities:
Interests, fee and commission received	38,856	27,770
Cash received from other operating activities	847,856	1,308,197
Sub-total of cash inflows from operating activities	886,712	1,335,967
Interests, fee and commission paid	3,370	2,308
Cash paid for various taxes	17,128	11,591
Cash paid for other operating activities	480,863	411,615
Sub-total of cash outflows from operating activities	501,361	425,514
Net cash flows from operating activities	385,351	910,453
Cash flows from investing activities:
Cash received from disposal of investments	1,766,305	38,494,860
Cash received from profits of investments	407,090	211,104
Sub-total of cash inflows from investing activities	2,173,395	38,705,964
Cash paid for acquisition of investments	14,006,503	37,160,729
Sub-total of cash outflows from investing activities	14,006,503	37,160,729
Net cash flows from investing activities	(11,833,108)	1,545,235
Cash flows from financing activities:
Cash received from new banks and other loans	11,000,000	-
Sub-total of cash inflows from investing activities	11,000,000	-
Cash paid for repayment of bank and other loans and debt instruments issued	14,502,000	-
Cash paid for dividends or profit distributions	1,202,071	1,102,550
Sub-total of cash outflows from financing activities	15,704,071	1,102,550
Net cash flows from financing activities	(4,704,071)	(1,102,550)
Effect of foreign exchange rate changes on cash and cash equivalents	(38,348)	29,104
Net (decrease)/increase in cash and cash equivalents	(16,190,176)	1,382,242
Add: Cash and cash equivalents at the beginning of the year	18,242,821	14,837,607
Cash and cash equivalents at 30 June	2,052,645	16,219,849