Shanghai Able Digital Science&Tech Co., Ltd. — Interim / Quarterly Report 2012

Aug 26, 2012

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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CITIC RESOURCES HOLDINGS LIMITED

(incorporated in Bermuda with limited liability)

(Stock Code: 1205)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2012

The board of directors (the “ Board ”) of CITIC Resources Holdings Limited (the “ Company ”) announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively the “ Group ”) for the six months ended 30 June 2012 (the “ Period ”).

FINANCIAL HIGHLIGHTS

	Six months ended	Six months ended	Six months ended
	30 June 2012		30 June 2011
	Unaudited		Unaudited	Change
	HK$ million		HK$ million
Revenue	24,817.7		18,418.0	34.7%
Underlying EBIT1	959.5		1,092.9	(12.2%)
Profit attributable to shareholders	228.1		393.4	(42.0%)
	30 June 2012	31	December 2011
	Unaudited		Audited	Change
	HK$ million		HK$ million
Net debt2	3,049.6		1,543.1	97.6%
Net debt to net total capital3	17.3%		9.7%

• 1 profit before tax + finance costs

• 2 bank and other borrowings + finance lease payables + bond obligations – cash and cash equivalents

• 3 net debt / (net debt + equity attributable to shareholders) x 100%

• The focused diversification strategy of the Group demonstrated sufficient resilience in the Period during which the global economy remained uncertain with volatile energy and commodities prices.

• If (i) the share of profit from Macarthur Coal Limited (“ Macarthur Coal ”) and (ii) the pre-tax gain from the partial disposal of the Group’s interest in the Codrilla project in the first half of 2011 (“ 1H 2011 ”), totalling HK$383.8 million, are excluded for the purpose of comparison, the Group’s underlying EBIT would have increased year-on-year by 35.3% in the Period.

• After taking into account the corresponding tax effect of HK$81.9 million, the adjusted profit attributable to shareholders would have increased by 1.5 times from HK$91.5 million in 1H 2011 to HK$228.1 million in the Period.

— 1 —

FINANCIAL RESULTS

CONDENSED CONSOLIDATED INCOME STATEMENT Six months ended 30 June Unaudited

Notes REVENUE 4 Cost of sales Gross profit Other income and gains 5 Selling and distribution costs General and administrative expenses Other expenses, net Finance costs 6 Share of profit/(loss) of associates PROFIT BEFORE TAX 7 Income tax expense 8 PROFIT FOR THE PERIOD ATTRIBUTABLE TO: Shareholders of the Company Non-controlling interests EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY 9 Basic Diluted	2012 HK$’000 24,817,688 (22,758,853) 2,058,835 301,653 (1,047,417) (303,699) 4,679 (419,879) (54,508) 539,664 (299,711) 239,953 228,086 11,867 239,953 HK 2.90 cents HK 2.90 cents	2011 HK$’000 18,417,974 (16,412,079) 2,005,895 326,279 (1,015,312) (323,182) (159,493) (379,335) 258,719 713,571 (310,352) 403,219 393,359 9,860 403,219 HK 6.17 cents HK 6.16 cents

— 2 —

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended 30 June Unaudited

PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME Available-for-sale investments: Changes in fair value Income tax effect Cash flow hedges: Effective portion of changes in fair value of hedging instruments arising during the period Income tax effect Share of other comprehensive income of an associate Exchange differences on translation of foreign operations OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD, NET OF TAX TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: Shareholders of the Company Non-controlling interests	2012 HK$’000 239,953 (7,226) 2,168 (5,058) (22,943) 6,882 (16,061) (17,096) (33,157) (23,466) (61,681) 178,272 167,303 10,969 178,272	2011 HK$’000 403,219 (15,002) 4,500 (10,502) 82,209 (24,663) 57,546 4,791 62,337 358,612 410,447 813,666 791,659 22,007 813,666

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes NON-CURRENT ASSETS Property, plant and equipment Goodwill Other asset Investment in an associate Available-for-sale investments Prepayments, deposits and other receivables Derivative financial instruments Deferred tax assets Total non-current assets CURRENT ASSETS Inventories Trade receivables 11 Prepayments, deposits and other receivables Equity investments at fair value through profit or loss Derivative financial instruments Tax recoverable Cash and cash equivalents Total current assets CURRENT LIABILITIES Accounts payable 12 Tax payable Accrued liabilities and other payables Derivative financial instruments Bank and other borrowings Finance lease payables Provisions Total current liabilities NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES	30 June 2012 31 December 2011 Unaudited Audited HK$’000 HK$’000 13,681,366 13,843,288 24,682 24,682 220,171 244,915 3,420,786 3,496,690 25,107 32,584 669,251 664,681 23,343 23,272 91,289 94,587 18,155,995 18,424,699 1,994,167 1,951,756 1,708,063 2,061,357 747,787 611,318 2,972 2,963 17,007 38,795 64,633 12,515 9,002,151 10,779,067 13,536,780 15,457,771 556,932 1,162,127 179,342 1,718,493 1,050,362 976,822 10,252 8,410 3,254,768 2,345,070 9,211 7,964 49,558 60,578 5,110,425 6,279,464 8,426,355 9,178,307 26,582,350 27,603,006	30 June 2012 31 December 2011 Unaudited Audited HK$’000 HK$’000 13,681,366 13,843,288 24,682 24,682 220,171 244,915 3,420,786 3,496,690 25,107 32,584 669,251 664,681 23,343 23,272 91,289 94,587 18,155,995 18,424,699 1,994,167 1,951,756 1,708,063 2,061,357 747,787 611,318 2,972 2,963 17,007 38,795 64,633 12,515 9,002,151 10,779,067 13,536,780 15,457,771 556,932 1,162,127 179,342 1,718,493 1,050,362 976,822 10,252 8,410 3,254,768 2,345,070 9,211 7,964 49,558 60,578 5,110,425 6,279,464 8,426,355 9,178,307 26,582,350 27,603,006
		18,424,699
		1,951,756 2,061,357 611,318 2,963 38,795 12,515 10,779,067
		15,457,771
		1,162,127 1,718,493 976,822 8,410 2,345,070 7,964 60,578
		6,279,464
		9,178,307
		27,603,006

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

TOTAL ASSETS LESS CURRENT LIABILITIES NON-CURRENT LIABILITIES Bank and other borrowings Finance lease payables Bond obligations Deferred tax liabilities Derivative financial instruments Provisions Other payable Total non-current liabilities NET ASSETS EQUITY Equity attributable to shareholders of the Company Issued capital Reserves Non-controlling interests TOTAL EQUITY	30 June 2012 31 December 2011 Unaudited Audited HK$’000 HK$’000 26,582,350 27,603,006 1,145,381 2,260,461 37,127 42,446 7,605,246 7,666,272 1,667,554 1,728,235 241,303 240,574 761,300 735,330 113,599 104,610 11,571,510 12,777,928 15,010,840 14,825,078 393,287 393,287 14,171,431 13,996,638 14,564,718 14,389,925 446,122 435,153 15,010,840 14,825,078	30 June 2012 31 December 2011 Unaudited Audited HK$’000 HK$’000 26,582,350 27,603,006 1,145,381 2,260,461 37,127 42,446 7,605,246 7,666,272 1,667,554 1,728,235 241,303 240,574 761,300 735,330 113,599 104,610 11,571,510 12,777,928 15,010,840 14,825,078 393,287 393,287 14,171,431 13,996,638 14,564,718 14,389,925 446,122 435,153 15,010,840 14,825,078
		2,260,461 42,446 7,666,272 1,728,235 240,574 735,330 104,610
		12,777,928
		14,825,078
		393,287 13,996,638
		14,389,925 435,153
		14,825,078

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NOTES

1. BASIS OF PREPARATION

These unaudited interim condensed consolidated financial statements (“ Financial Statements ”) have been prepared in accordance with Hong Kong Accounting Standard (“ HKAS ”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (“ HKICPA ”) and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”).

These Financial Statements do not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Group’s financial statements for the year ended 31 December 2011.

Except as described below, the accounting policies and methods of computation used in the preparation of these Financial Statements are consistent with the Group’s financial statements for the year ended 31 December 2011.

2. CHANGES IN ACCOUNTING POLICY AND DISCLOSURES

The Group has adopted the following revised Hong Kong Financial Reporting Standards (“ HKFRSs ”) (which include all HKFRSs, HKASs and Interpretations) issued by HKICPA for the first time for these Financial Statements.

HKFRS 1 Amendments	Amendments to HKFRS 1 First-time Adoption of
	Hong Kong Financial Reporting Standards –
	Severe Hyperinflation and Removal of Fixed Dates for
	First-time Adopters
HKFRS 7 Amendments	Amendments to HKFRS 7 Financial Instruments:
	Disclosures – Transfers of Financial Assets
HKAS 12 Amendments	Amendments to HKAS 12 Income Taxes –
	Deferred Tax: Recovery of Underlying Assets

The adoption of these revised HKFRSs has had no significant financial effect on these Financial Statements and there have been no significant changes to the accounting policies applied in these Financial Statements.

— 6 —

3. ISSUED BUT NOT YET EFFECTIVE HONG KONG FINANCIAL REPORTING STANDARDS

The Group has not applied the following new and revised HKFRSs, that have been issued but are not yet effective, in these Financial Statements.

HKFRS 1 Amendments	Amendments to HKFRS 1 First-time Adoption of
	Hong Kong Financial Reporting Standards –
	Government Loans2
HKFRS 7 Amendments	Amendments to HKFRS 7 Financial Instruments:
	Disclosures – Offsetting Financial Assets and
	Financial Liabilities2
HKFRS 9	Financial Instruments4
HKFRS 10	Consolidated Financial Statements2
HKFRS 11	Joint Arrangements2
HKFRS 12	Disclosure of Interests in Other Entities2
HKFRS 13	Fair Value Measurement2
HKAS 1 Amendments	Presentation of Financial Statements –
	Presentation of Items of Other Comprehensive Income1
HKAS 19 (2011)	Employee Benefits2
HKAS 27 (2011)	Separate Financial Statements2
HKAS 28 (2011)	Investments in Associates and Joint Ventures2
HKAS 32 Amendments	Amendments to HKAS 32 Financial Instruments:
	Presentation – Offsetting Financial Assets and Financial Liabilities3
HK(IFRIC) – Int 20	Stripping Costs in the Production Phase of a Surface Mine2
Annual Improvements 2009-2011 Cycle	Amendments to a number of HKFRSs issued in June 20122
Amendments to HKFRS 10,	Consolidated Financial Statements, Joint Arrangements and
HKFRS 11 and HKFRS 12	Disclosure of Interests in Other Entities: Transition Guidance2

• 1 Effective for annual periods beginning on or after 1 July 2012 2 Effective for annual periods beginning on or after 1 January 2013 3 Effective for annual periods beginning on or after 1 January 2014 4 Effective for annual periods beginning on or after 1 January 2015

The Group is in the process of making an assessment of the impact of these new and revised HKFRSs upon initial application. So far, it has concluded that while the adoption of HKFRS 9, HKFRS 10, HKFRS 11, HKAS 19 (2011), HKAS 27 (2011), HKAS 28 (2011) and Amendments to HKFRS 10, HKFRS 11 and HKFRS 12 may result in a change in accounting policy and the adoption of HKFRS 12, HKFRS 13 and HKAS 1 Amendments may result in new or amended disclosures, these new and revised HKFRSs are unlikely to have a significant impact on the Group’s results of operations and financial position.

4.

OPERATING SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their products and services and has four reportable operating segments as follows:

• (a) the aluminium smelting segment comprises the operation of the Portland Aluminium Smelter which sources alumina and produces aluminium ingots in Australia;

• (b) the coal segment comprises the operation of coal mines and the sale of coal in Australia;

• (c) the import and export of commodities segment represents the export of various commodity products such as aluminium ingots, iron ore, alumina and coal; and the import of other commodities and manufactured goods such as vehicle and industrial batteries, tyres and various metals such as steel and aluminium extrusion products in Australia; and

• (d) the crude oil segment comprises the operation of oilfields and the sale of oil in the Republic of Indonesia (“ Indonesia ”), the People’s Republic of China (the “ PRC ”) and the Republic of Kazakhstan (“ Kazakhstan ”).

— 7 —

4. OPERATING SEGMENT INFORMATION (continued)

Management monitors the results of the Group’s operating segments separately for the purposes of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit, which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group’s profit before tax except that interest income, finance costs, dividend income, fair value gains/(losses) from the Group’s derivative financial instruments not relating to the operations as well as head office and corporate expenses are excluded from such measurement.

Six months ended 30 June 2012 Unaudited HK$’000 Segment revenue: Sales to external customers Other income Segment results Reconciliation: Interest income and unallocated gains Unallocated expenses Unallocated finance costs Share of loss of an associate Profit before tax Six months ended 30 June 2011 Unaudited HK$’000 Segment revenue: Sales to external customers Other income Segment results Reconciliation: Interest income and unallocated gains Unallocated expenses Unallocated finance costs Share of profit of associates Profit before tax	Aluminium smelting 651,564 8,261 659,825 4,055 Aluminium smelting 735,799 2,237 738,036 2,667	Import and export of Coal commodities 221,975 20,767,326 11,345 23,073 233,320 20,790,399 7,548 331,213 Import and export of Coal commodities 204,928 14,707,626 273,190 27,104 478,118 14,734,730 318,238 123,625	Crude oil 3,176,823 2,797 3,179,620 485,247 Crude oil 2,769,621 4,294 2,773,915 467,243	Total 24,817,688 45,476 24,863,164 828,063 256,177 (70,189) (419,879) (54,508) 539,664 Total 18,417,974 306,825 18,724,799 911,773 19,454 (97,040) (379,335) 258,719 713,571

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5. OTHER INCOME AND GAINS

An analysis of the Group’s other income and gains is as follows:

2012 HK$’000 Interest income 170,070 Handling service fees 22,808 Gain on disposal of items of property, plant and equipment 1,767 Sale of scrap 2,914 Fair value gains on derivative financial instruments 97,987 Gain on disposal of coal exploration interests — Others 6,107 301,653 6. FINANCE COSTS An analysis of finance costs is as follows: 2012 HK$’000 Interest expense on bank and other borrowings 127,365 Interest expense on fixed rate senior notes, net 261,934 Interest expense on finance leases 1,802 Total interest expense on financial liabilities not at fair value through profit or loss 391,101 Amortisation of fixed rate senior notes 11,513 402,614 Other finance charges: Increase in discounted amounts of provision arising from the passage of time 16,955 Others 310 419,879 7. PROFIT BEFORE TAX The Group’s profit before tax is arrived at after charging/(crediting): 2012 HK$’000 Depreciation 597,960 Amortisation of other asset 25,914 Fair value losses on derivative financial instruments — Loss on disposal/write-off of items of property, plant and equipment 503 Loss on purchase of fixed rate senior notes 2,722 Exchange losses/(gains), net (21,661)	2011 HK$’000 12,129 26,839 2,681 2,237 — 273,190 9,203
	326,279
	2011 HK$’000 91,947 264,596 2,380
	358,923 11,513
	370,436 5,667 3,232
	379,335
	2011 HK$’000 460,113 41,164 40,921 945 — 57,186

• These amounts are included in “Other expenses, net” in the condensed consolidated income statement.

— 9 —

8. INCOME TAX

Current: Hong Kong Elsewhere Deferred Total tax expense for the period	2012 HK$’000 — 357,227 357,227 (57,516) 299,711	2011 HK$’000 — 304,027
		304,027 6,325
		310,352

The statutory tax rate of Hong Kong profits tax was 16.5% (2011: 16.5%) on the estimated assessable profits arising in Hong Kong during the Period. No provision for Hong Kong profits tax has been made as the Group had no assessable profits arising in Hong Kong during the Period (2011: Nil).

Taxes on profits assessable elsewhere have been calculated at the rates of tax prevailing in the jurisdictions in which the Group operates.

Australia

Australian income tax has been provided at the statutory rate of 30% (2011: 30%) on the estimated taxable profits arising in Australia during the Period.

Indonesia

The corporate tax rate applicable to the subsidiary which is operating in Indonesia was 30% (2011: 30%) during the Period.

The Group’s subsidiary owning a participating interest in oil and gas properties in Indonesia is subject to branch tax at the effective rate of 14% (2011: 14%).

The PRC

The Group’s subsidiaries registered in the PRC are subject to corporate income tax at a rate of 25% (2011: 25%). No provision for the PRC corporate income tax has been made as the Group had no taxable profits arising in the PRC during the Period.

Kazakhstan

The corporate tax rate applicable to the Group’s jointly-controlled entities established and operating in Kazakhstan was 20% (2011: 20%) during the Period. The Group shall also pay excess profit tax (“ EPT ”) on its profit after corporate income tax each year. EPT is calculated based on annual profitability at progressive rates ranging from 10% to 60%.

According to HKAS 12 Income Taxes, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.

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9. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY

The calculation of basic earnings per share amount is based on the profit for the Period attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares in issue during the Period.

The calculation of diluted earnings per share amount is based on the profit for the Period attributable to ordinary shareholders of the Company. The weighted average number of ordinary shares used in the calculation is the number of ordinary shares in issue during the Period, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed exercise or conversion of all dilutive potential ordinary shares into ordinary shares.

The calculations of basic and diluted earnings per share amounts are based on:

Earnings Profit attributable to ordinary shareholders of the Company used in the basic earnings per share calculation Shares Weighted average number of ordinary shares in issue during the period used in the basic earnings per share calculation Effect of dilution – weighted average number of ordinary shares: share options	2012 2011 HK$’000 HK$’000 228,086 393,359 Number of shares 2012 2011 7,865,737,149 6,370,578,520 6,104,696 11,130,549 7,871,841,845 6,381,709,069	2011 HK$’000 393,359
		6,381,709,069

10. DIVIDEND

The Board has resolved not to pay an interim dividend for the Period (2011: Nil).

— 11 —

11. TRADE RECEIVABLES

An aged analysis of the trade receivables as at the end of the reporting period, based on the invoice date and net of provisions, was as follows:

Within one month One to two months Two to three months Over three months	30 June 2012 Unaudited HK$’000 1,081,684 56,938 303,258 266,183 1,708,063	31 December 2011 Audited HK$’000 1,101,795 691,282 70,277 198,003
		2,061,357

Included in the trade receivables is an amount due from the Group’s fellow subsidiary of HK$408,771,000 (31 December 2011: HK$402,537,000) which is repayable on similar credit terms to those offered to other customers of the Group.

The Group normally offers credit terms of 30 to 120 days to its established customers.

12. ACCOUNTS PAYABLE

An aged analysis of the accounts payable as at the end of the reporting period, based on the invoice date, was as follows:

Within one month One to two months Two to three months Over three months	30 June 2012 Unaudited HK$’000 537,733 12,298 302 6,599 556,932	31 December 2011 Audited HK$’000 1,113,747 28,795 13,415 6,170
		1,162,127

The accounts payable are non-interest-bearing and are normally settled on terms of 30 to 90 days.

— 12 —

BUSINESS REVIEW AND OUTLOOK

Review

The global economy was confronted with a number of downside risks in the Period as stress arising from European sovereign debt crisis ratcheted up and worries over global economic slowdown continued to loom large. These events, coupled with energy and commodity prices volatility, currency fluctuations and geopolitics, have together conspired to create a challenging operating environment across many industry sectors. Nevertheless, with a diversified business portfolio, the Group managed to mitigate risks and demonstrate sufficient resilience amid economic uncertainty with overall revenue achieving satisfactory year-on-year growth. A US$380 million term loan facility (the “ New Loan ”) successfully concluded in June 2012 also provided the Group with additional financial flexibility for business expansion and risk management. With its strengthened financial position, the Group is confident in its ability to meet the challenges from anticipated continuing market volatility in this and the coming year, while capable of seizing upon new business opportunities to maximize shareholder value.

The Group continues to position itself as an integrated provider of strategic natural resources and key commodities with its businesses spread in the energy, metals and import and export of commodities sectors.

Oil exploration and production continues to be the Group’s largest business segment by profit, with the Karazhanbas oilfield in Kazakhstan being the principal contributor to the Group’s overall oil production. Buoyed by higher crude oil realised prices and steady production, the Karazhanbas oilfield continued to deliver a robust performance with a 13% revenue growth compared to 1H 2011.

The Group continued to make progress during the Period on construction at the Yuedong oilfield in Liaoning Province, the PRC. Despite numerous challenges, construction of the three additional artificial islands and production facilities there, the subsea pipelines, onshore oil/water processing plant, as well as other related infrastructure are in progress and scheduled to complete by stages till late 2013. The Group expects the second artificial island to become operational by the end of 2012, and will continue to press ahead with its construction plan.

In Indonesia, the Seram Block continued to reap the benefit from well activities with stable production. Further exploration and development was carried out during the Period.

Subsequent to the partial disposal of its interest in the Codrilla project and the disposal of its entire interest in Macarthur Coal last year, the Group’s coal asset investments currently consist of a 7% direct interest in the Coppabella and Moorvale coal mines joint venture (the “ CMJV ”), and also certain interests in a number of coal exploration joint ventures in which Macarthur Coal, now a subsidiary of Peabody Energy Corporation (“ Peabody Energy ”), is also a participant.

Despite short-term market volatility during the Period, in particular in coal prices, the Group’s coal segment managed to achieve an increase in its production and sales volume. Taking into consideration the sustained demand for low volatile pulverized coal injection coal in particular from emerging markets such as the PRC, the Group is optimistic about the long-term outlook for its coal business and will continue to work with Peabody Energy in operating the CMJV as well as realising resource potential from its other coal exploration tenements.

— 13 —

The Group’s strategic metal investments are currently made up of its 22.5% interest in the Portland Aluminium Smelter joint venture (the “ PAS JV ”), and a 38.98% interest in its listed associate, CITIC Dameng Holdings Limited (“ CDH ”), which operates a manganese mining and production business.

Although revenue from the Group’s aluminium smelting segment was affected by a softening in selling prices attributable to unstable market conditions, segment results were lifted by gains from foreign exchange movements with the United States dollar appreciating against the Australian dollar in the Period.

Regarding the Group’s investment in CDH, a share in a loss was recorded following the consolidated net loss incurred by CDH, whose performance was affected by lower average selling prices of manganese products resulting from sluggish demand for steel products as well as upward pressure on raw materials prices and labour costs.

In spite of unstable commodities prices triggered by cyclical market volatility in the Period, the Group’s import and export of commodities business managed to deliver a good performance in terms of growth in both revenue and segment result, attributable mainly to higher sales volumes being attained illustrating the Group’s strong experience and sales network.

As a move to further improve its long-term liquidity and capital base, the Group successfully concluded the New Loan with a consortium of 10 leading international financial institutions. The New Loan received an overwhelming response from the banking market with 90% over-subscription, demonstrating the banks’ confidence in the Group’s future growth.

Outlook

Looking ahead, risks associated with the unresolved European sovereign debt crisis and perceived growth uncertainty especially in certain emerging economies will continue to present challenges for the global energy and commodity sectors. The Group is equipped with a much strengthened financial base and with support from its substantial shareholders is well positioned to match these challenges and to continue to pursue business growth.

The Group will forge ahead with plans for further development and strive to bring about full production at the Yuedong oilfield as early as practicable. Apart from organic growth, the Group will also seek potential acquisitions with a view to upsizing the Group for better production and operating efficiency, stronger profitability and competitiveness.

— 14 —

LIQUIDITY, FINANCIAL RESOURCES AND CAPITAL STRUCTURE

Cash

As at 30 June 2012, the Group had cash and cash equivalents of HK$9,002.2 million.

Borrowings

As at 30 June 2012, the Group had total debt of HK$12,051.7 million, which comprised:

• secured bank loan of HK$382.2 million;

• unsecured bank loans of HK$3,726.9 million;

• secured other loans of HK$2.5 million;

• unsecured other loan of HK$288.6 million;

• finance lease payables of HK$46.3 million; and

• bond obligations of HK$7,605.2 million.

The secured bank loan was secured by the Group’s 22.5% participating interest in the PAS JV.

Most transactions of CITIC Australia Trading Pty Limited (“ CATL ”) are debt funded which means CATL is highly geared. However, in contrast to term loans, CATL’s borrowings are self liquidating, transaction specific and of short durations, matching the term of the underlying trade. When sale proceeds are received at the completion of a transaction, the related borrowings are repaid accordingly.

In January 2008, the Company, as borrower, entered into a facility agreement with a syndicate of financial institutions as lenders in respect of an unsecured 5-year term loan facility of US$280 million (HK$2,184 million) (the “ Existing Loan ”). The outstanding balance of the Existing Loan as at 30 June 2012 was US$175 million (HK$1,365 million).

In June 2012, the Company, as borrower, entered into a facility agreement with a syndicate of financial institutions as lenders in respect of the New Loan, being an unsecured 3-year term loan facility of US$380 million (HK$2,964 million). Proceeds of the New Loan will be applied to refinance the final principal repayment instalment of the Existing Loan, being US$140 million (HK$1,092 million), and to finance the general corporate funding requirements of the Company.

The Group leases certain of its plant and machinery for its coal mine operation. The leases are classified as finance leases.

The bond obligations represent the issue of US$1,000,000,000 6.75% senior notes due 2014 (the “ Notes ”) by CITIC Resources Finance (2007) Limited (“ CR Finance ”), a direct wholly-owned subsidiary of the Company. The obligations of CR Finance under the Notes are guaranteed by the Company. The net proceeds of the Notes were used by the Group to facilitate the acquisition of the Kazakhstan Interests and for general working capital requirements.

As at 30 June 2012, the Group’s net debt to net total capital was 17.3% (31 December 2011: 9.7%). Of the total debt, HK$3,264.0 million was repayable within one year, the major of which being trade finance related and of a periodic renewal nature.

— 15 —

Share capital

There was no movement in the share capital of the Group during the Period.

Financial risk management

The Group’s diversified business is exposed to a variety of risks, such as market risks (including foreign currency risk, price risk, interest rate risk and inflation risk), credit risk and liquidity risk. The management of such risks is dictated by a set of internal policies and procedures designed to minimise potential adverse effects to the Group. The policies and procedures have proved effective.

The Group enters into derivative transactions, including principally forward currency contracts, forward commodity contracts, interest rate swap contracts, an embedded derivative and an electricity hedge agreement. The purpose is to manage the foreign currency risk, price risk, interest rate risk and inflation risk arising from the Group’s operations and its sources of finance.

Opinion

The Board is of the opinion that, after taking into account the existing available borrowing facilities and internal resources, the Group has sufficient resources to meet its foreseeable working capital requirements.

EMPLOYEES AND REMUNERATION POLICIES

As at 30 June 2012, the Group had around 4,600 full time employees, including management and administrative staff. Most of the Group’s employees are employed in Kazakhstan, the PRC and Indonesia while the others are employed in Australia and Hong Kong.

The Group’s remuneration policy seeks to provide fair market remuneration in a form and value to attract, retain and motivate high quality staff. Remuneration packages are set at levels to ensure comparability and competitiveness with other companies in the industry and market competing for a similar talent pool. Emoluments are also based on an individual’s knowledge, skill, time commitment, responsibilities and performance and by reference to the Group’s profits and performance. Rent-free quarters are provided to some employees in Kazakhstan and Indonesia.

CORPORATE GOVERNANCE CODE

Throughout the Period, the Company has applied the principles and complied with the applicable code provisions, and also complied with certain recommended best practices, of the Code on Corporate Governance Practices (on and before 31 March 2012) and the Corporate Governance Code (since 1 April 2012) as set out in Appendix 14 to the Listing Rules, except for code provision A.6.7 because a non-executive director of the Company was unable to attend the annual general meeting of the Company held on 29 June 2012 due to other important business engagements.

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MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted a code of conduct for dealings in the securities of the Company by its directors (the “ Securities Dealings Code ”) that is based on the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) as set out in Appendix 10 to the Listing Rules (or on terms no less exacting than the Model Code).

All directors confirmed, following specific enquiry by the Company, that they have complied with the required standards set out in the Securities Dealings Code throughout the Period.

PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

Neither the Company nor any of its subsidiaries purchased, redeemed or sold any of the Company’s listed securities during the Period.

REVIEW OF ACCOUNTS

The audit committee has reviewed these unaudited interim results with the management of the Company.

By Order of the Board CITIC Resources Holdings Limited Zeng Chen Vice Chairman and Chief Executive Officer

Hong Kong, 24 August 2012

As at the date hereof, the executive directors of the Company are Mr. Sun Xinguo; Mr. Zeng Chen; Mr. Guo Tinghu and Ms. Li So Mui, the non-executive directors are Mr. Ju Weimin; Mr. Qiu Yiyong; Mr. Tian Yuchuan; Mr. Wong Kim Yin and Mr. Zhang Jijing, and the independent non-executive directors are Mr. Fan Ren Da, Anthony; Mr. Gao Pei Ji and Mr. Ngai Man.

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