Shanghai Able Digital Science&Tech Co., Ltd. - Interim / Quarterly Report 2022

==> picture [294 x 88] intentionally omitted <==

I N T E R I M R E P O R T 中期報告 2 0 2 2

A L U M I N I U M

==> picture [22 x 9] intentionally omitted <==

----- Start of picture text -----

O I L
----- End of picture text -----

==> picture [353 x 281] intentionally omitted <==

----- Start of picture text -----

C O A L
I M P O R T A N D
E X P O R T O F
C O M M O D I T I E S
----- End of picture text -----

==> picture [190 x 129] intentionally omitted <==

OIL

Major income driver with steady production and development in oilfields located in Kazakhstan, China and Indonesia.

COAL

A 14% participating interest in the Coppabella and Moorvale coal mines joint venture (a major producer of low volatile pulverized coal injection coal in the international seaborne market) and interests in a number of coal exploration operations in Australia with significant resource potential.

IMPORT AND EXPORT OF COMMODITIES

An import and export of commodities business, based on strong expertise and established marketing networks, with a focus on international trade.

ALUMINIUM

(1) a 22.5% participating interest in the Portland Aluminium Smelter joint venture, one of the largest and most efficient aluminium smelting operations in the world; and (2) a 9.6117% equity interest in Alumina Limited (ASX: AWC), one of Australia’s leading companies with significant global interests in bauxite mining, alumina refining and selected aluminium smelting operations.

Contents 目錄

Corporate Information 公司資料 Financial Results 財務業績

Condensed Consolidated Income Statement 1 簡明綜合利潤表 Condensed Consolidated Statement of Comprehensive Income 2 簡明綜合全面利潤表 Condensed Consolidated Statement of Financial Position 3 簡明綜合財務狀況報表 Condensed Consolidated Statement of Changes in Equity 4 簡明綜合權益變動表 Condensed Consolidated Statement of Cash Flows 7 簡明綜合現金流量表 Notes to the Condensed Consolidated Financial Statements 8 簡明綜合財務報表附註

Other Information 其他資料

Business Review and Outlook 22 業務回顧和展望

Financial Review 25 財務回顧

Liquidity, Financial Resources and Capital Structure 32 流動現金、財務資源和資本結構 Employees and Remuneration Policies 34 僱員和酬金政策 Events Occurring after the Reporting Period 34 報告期間後事項 Corporate Governance Code 34 企業管治守則 Model Code for Securities Transactions by Directors 35 董事進行證券交易的標準守則 Directors’ and Chief Executive’s Interests in 董事和最高行政人員在股份和相關 35 Shares and Underlying Shares 股份的權益 Share Option Scheme 36 購股權計劃

Substantial Shareholders’ and Other Persons’ Interests in 主要股東和其他人士在股份和相關 36 Shares and Underlying Shares 股份的權益 Update on Directors’ Information Pursuant to Rule 13.51B(1) of 根據上市規則第13.51B(1)條提供的董 38 the Listing Rules 事資料更新

Purchase, Redemption or Sale of Listed Securities of the Company 38 購買、贖回或出售本公司的上市證券 Review of Accounts 38 審閱賬目

Glossary of Terms 39 詞彙表

Corporate Information

Board of Directors

Executive Directors

Mr. Sun Yufeng (Chairman) Mr. Suo Zhengang (Vice Chairman and Chief Executive Officer)

Company Secretary

Mr. Wat Chi Ping Isaac

Registered Office

Clarendon House 2 Church Street, Hamilton HM 11, Bermuda

Non-executive Director

Mr. Chan Kin

Independent Non-executive Directors

Mr. Fan Ren Da, Anthony Mr. Gao Pei Ji Mr. Look Andrew

Audit Committee

Mr. Fan Ren Da, Anthony (Chairman) Mr. Gao Pei Ji Mr. Look Andrew

Remuneration Committee

Mr. Gao Pei Ji (Chairman) Mr. Fan Ren Da, Anthony Mr. Look Andrew Mr. Suo Zhengang

Nomination Committee

Mr. Sun Yufeng (Chairman) Mr. Fan Ren Da, Anthony Mr. Gao Pei Ji

Head Office and Principal Place of Business

Suites 6701-02 & 08B 67/F, International Commerce Centre 1 Austin Road West, Kowloon, Hong Kong

Telephone : (852) 2899 8200 Facsimile : (852) 2815 9723 E-mail : [email protected] Website : http://resources.citic

Hong Kong Branch Share Registrar and Transfer Office

Tricor Tengis Limited 17/F, Far East Finance Centre 16 Harcourt Road, Hong Kong

Auditor

PricewaterhouseCoopers Certified Public Accountants and Registered Public Interest Entity Auditor 22/F, Prince’s Building Central, Hong Kong

Principal Bankers

Risk Management Committee

Mr. Look Andrew (Chairman) Mr. Fan Ren Da, Anthony Mr. Gao Pei Ji Mr. Sun Yufeng Mr. Suo Zhengang

Bank of China (Hong Kong) Limited China CITIC Bank International Limited China Construction Bank Corporation Hong Kong Branch China Development Bank Hong Kong Branch Mizuho Bank, Ltd., Hong Kong Branch Sumitomo Mitsui Banking Corporation

Unaudited HK$’000

Six months ended 30 June

Financial Results

The Board of the Company presents the unaudited consolidated interim results of the Group for the Period.

Condensed Consolidated Income Statement

==> picture [485 x 496] intentionally omitted <==

----- Start of picture text -----

Notes 2022 2021
REVENUE 5 3,228,390 1,703,857
Cost of sales (2,167,863) (1,340,714)
Gross profit 1,060,527 363,143
Other income, gains and losses, net 5 102,486 52,547
General and administrative expenses (132,932) (122,749)
Other expenses, net (4,712) (10,152)
Finance costs 6 (55,122) (43,125)
Share of profit of:
An associate 102,445 77,255
A joint venture 286,722 172,778
PROFIT BEFORE TAX 7 1,359,414 489,697
Income tax expense 8 (430,942) (42,160)
PROFIT FOR THE PERIOD 928,472 447,537
ATTRIBUTABLE TO:
Shareholders of the Company 893,288 427,412
Non-controlling interests 35,184 20,125
928,472 447,537
EARNINGS PER SHARE ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS OF THE COMPANY 9 HK cents HK cents
Basic 11.37 5.44
Diluted 11.37 5.44
----- End of picture text -----

01 CITIC Resources Holdings Limited

Unaudited HK$’000

Six months ended 30 June

Condensed Consolidated Statement of Comprehensive Income

==> picture [484 x 471] intentionally omitted <==

----- Start of picture text -----

2022 2021
PROFIT FOR THE PERIOD 928,472 447,537
OTHER COMPREHENSIVE INCOME/(LOSS)
Other comprehensive income/(loss) that may be
reclassified to profit or loss in subsequent periods:
Cash flow hedges:
Effective portion of changes in fair value of
hedging instruments arising during the period 13,060 (15,953)
Income tax effect – 4,787
13,060 (11,166)
Exchange differences on translation of foreign operations (151,155) 18,280
Share of other comprehensive (loss)/income of a joint venture (5,994) 1,694
Net other comprehensive (loss)/income that may be reclassified to
profit or loss in subsequent periods (144,089) 8,808
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD,
NET OF TAX (144,089) 8,808
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 784,383 456,345
ATTRIBUTABLE TO:
Shareholders of the Company 762,512 434,131
Non-controlling interests 21,871 22,214
784,383 456,345
----- End of picture text -----

Interim Report 2022

HK$’000

Condensed Consolidated Statement of Financial Position

==> picture [483 x 581] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Notes Unaudited Audited
NON-CURRENT ASSETS
Property, plant and equipment 11 3,569,056 3,838,772
Right-of-use assets 66,334 83,123
Goodwill 24,682 24,682
Other assets 224,111 224,676
Investment in an associate 2,934,634 2,893,101
Investment in a joint venture 2,354,493 2,073,765
Prepayments, deposits and other receivables 12 24,875 38,594
Time deposit 91,647 88,754
Deferred tax assets – 187,832
Total non-current assets 9,289,832 9,453,299
CURRENT ASSETS
Inventories 13 521,151 431,595
Trade receivables 14 588,186 704,889
Prepayments, deposits and other receivables 12 254,029 167,372
Derivative financial instruments 15 114,978 21,012
Cash and deposits 16 2,486,131 1,925,573
Total current assets 3,964,475 3,250,441
CURRENT LIABILITIES
Accounts payable 17 110,998 135,803
Tax payable 54,969 54,113
Accrued liabilities and other payables 889,762 919,545
–
Dividend payable 353,633
Derivative financial instruments 15 – 643
Bank and other borrowings 18 374,989 240,669
Lease liabilities 20,432 26,463
Provisions for long-term employee benefits 41,619 46,667
Provisions 4,948 1,163
Total current liabilities 1,851,350 1,425,066
NET CURRENT ASSETS 2,113,125 1,825,375
TOTAL ASSETS LESS CURRENT LIABILITIES 11,402,957 11,278,674
----- End of picture text -----

03 CITIC Resources Holdings Limited

HK$’000

Condensed Consolidated Statement of Financial Position

==> picture [484 x 384] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Notes Unaudited Audited
TOTAL ASSETS LESS CURRENT LIABILITIES 11,402,957 11,278,674
NON-CURRENT LIABILITIES
Bank and other borrowings 18 2,954,640 3,418,480
Lease liabilities 31,871 41,102
Deferred tax liabilities 402,651 256,016
Provisions for long-term employee benefits 17,593 19,919
Provisions 642,093 619,833
Total non-current liabilities 4,048,848 4,355,350
NET ASSETS 7,354,109 6,923,324
EQUITY
Equity attributable to shareholders of the Company
Issued capital 19 392,886 392,886
Reserves 6,960,445 6,551,531
7,353,331 6,944,417
Non-controlling interests 778 (21,093)
TOTAL EQUITY 7,354,109 6,923,324
----- End of picture text -----

Interim Report 2022

HK$’000

Condensed Consolidated Statement of Changes in Equity

==> picture [555 x 225] intentionally omitted <==

----- Start of picture text -----

Share
Issued premium Contributed Capital
capital account surplus reserve
At 31 December 2020 (audited) and
1 January 2021 392,886 6,852 251,218 (38,579)
– – – –
Total comprehensive Income/(loss) for the Period
At 30 June 2021 (unaudited) 392,886 6,852 251,218 (38,579)
At 31 December 2021 (audited) and
1 January 2022 392,886 6,852 251,218 (38,579)
– – – –
Total comprehensive Income/(loss) for the Period
Final dividend – – – –
At 30 June 2022 (unaudited) 392,886 6,852 251,218 (38,579)
----- End of picture text -----

05 CITIC Resources Holdings Limited

HK$’000

==> picture [555 x 225] intentionally omitted <==

----- Start of picture text -----

Attributable to shareholders of the Company
Exchange Cash flow Investment Defined Non-
fluctuation hedge related benefit Retained controlling Total
reserve reserve reserve reserve profits Sub-total interests equity
117,512 25,691 (1,392,632) 29,306 6,415,461 5,807,715 (40,397) 5,767,318
–
16,191 (11,166) 1,694 427,412 434,131 22,214 456,345
133,703 14,525 (1,390,938) 29,306 6,842,873 6,241,846 (18,183) 6,223,663
182,180 16,308 (1,422,978) 37,703 7,518,827 6,944,417 (21,093) 6,923,324
–
(137,842) 13,060 (5,994) 893,288 762,512 21,871 784,383
– – – – –
(353,598) (353,598) (353,598)
44,338 29,368 (1,428,972) 37,703 8,058,517 7,353,331 778 7,354,109
----- End of picture text -----

Interim Report 2022

Unaudited HK$’000

Six months ended 30 June

Condensed Consolidated Statement of Cash Flows

==> picture [485 x 602] intentionally omitted <==

----- Start of picture text -----

2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash flows from operating activities 1,149,572 349,386
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 10,559 7,366
Dividend income from an associate 60,912 63,087
Purchases of items of property, plant and equipment (244,850) (188,317)
Proceeds from disposal of items of property, plant and equipment 784 189
Proceeds from disposal of other assets (202) 2,722
–
Repayment of loan from a joint venture 23,400
Increase in a time deposit with original maturity of more than
–
one year (13,361)
–
Payment for abandonment cost (7,345)
–
Increase in deposits with a fellow subsidiary (270,003)
Net cash flows used in investing activities (426,745) (128,314)
CASH FLOWS FROM FINANCING ACTIVITIES
New bank and other borrowings 635,466 2,999,116
Repayment of bank and other borrowings (958,811) (4,064,350)
–
Receipt of a loan from government 7,945
–
Repayment of a loan from government (14,242)
Principal portion of lease payments (12,970) (15,717)
Interest portion of lease liabilities (750) (1,406)
Interest paid (35,084) (42,374)
Finance charges paid (980) (19,779)
Net cash flows used in financing activities (373,129) (1,150,807)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 349,698 (929,735)
Cash and cash equivalents at beginning of period 1,306,724 2,314,285
Effect of foreign exchange rate changes, net (204) (102)
CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,656,218 1,384,448
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS
Cash and bank balances 1,289,585 657,018
Time deposits 366,633 727,430
Cash and cash equivalents as stated in
the condensed consolidated statement of financial position 1,656,218 1,384,448
----- End of picture text -----

07 CITIC Resources Holdings Limited

Notes to the Condensed Consolidated Financial Statements

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 (the “ 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 consolidated financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2021.

The accounting policies and methods of computation used in the preparation of these Financial Statements are consistent with the consolidated financial statements of the Group for the year ended 31 December 2021, except for the adoption of new and revised standards with effect from 1 January 2022 as detailed in note 2 below.

These Financial Statements were approved and authorised for issue by the Board on 22 July 2022.

2. Changes in Accounting Policies and Disclosures

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

Amendments to HKFRS 3 Reference to the Conceptual Framework Amendments to HKAS 16 Property, Plant and Equipment: Proceeds before Intended Use Amendments to HKAS 37 Onerous Contracts – Costs of Fulfilling a Contract Annual Improvements to HKFRSs Annual Improvements to HKFRSs 2018-2020

Several amendments apply for the first time in 2022, but do not have an impact on the interim condensed consolidated financial statements of the Group.

Interim Report 2022

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.

Amendments to HKFRS 10 and Sale or Contribution of Assets between an Investor and its HKAS 28 (2011) Associate or Joint Venture[2] HKFRS 17 Insurance Contracts[1] Amendments to HKAS 1 Classification of Liabilities as Current or Non-current[ 1] Hong Kong Interpretation 5 (2020) Presentation of financial statements-classification by the borrower of a term loan that contains a repayment on demand clause[1] Amendments to HKAS 1 and Disclosure of accounting policies[1] HKFRS Practice Statement 2 Amendments to HKAS 8 Definition of accounting estimates[1] Amendments to HKAS 12 Deferred tax related to assets and liabilities arising from a single transaction[1]

1 Effective for annual periods beginning on or after 1 January 2023 2 No mandatory effective date yet determined but available for adoption

The Group is in the process of making an assessment of the impact of these new and revise HKFRSs upon initial application. So far, it has concluded that the adoption of these new and revised HKFRSs may result in changes in accounting policies. However, for the time being, it is not in a position to state whether these new and revised HKFRSs would have a significant impact on the Group’s result 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 comprises the export of various commodity products such as aluminium ingots and alumina; and the import of other commodity products and manufactured goods such as steel, and vehicle and industrial batteries and tyres into Australia; and
(d) the crude oil segment comprises the operation of oilfields and the sale of oil in Indonesia and China.

CITIC Resources Holdings Limited

Unaudited HK$’000

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/(loss), which is a measure of adjusted profit/(loss) before tax. The adjusted profit/(loss) before tax is measured consistently with the Group’s profit before tax except that interest income, finance costs, and share of profit of an associate and a joint venture as well as head office and corporate expenses are excluded from such measurement.

Segment assets exclude investment in an associate, investment in a joint venture, deferred tax assets, cash and deposits and other unallocated head office and corporate assets as these assets are managed on a group basis.

Segment liabilities exclude bank and other borrowings, lease liabilities, deferred tax liabilities, and other unallocated head office and corporate liabilities as these liabilities are managed on a group basis.

==> picture [462 x 300] intentionally omitted <==

----- Start of picture text -----

Import and
Six months ended 30 June Aluminium export of
Unaudited smelting Coal commodities Crude oil Total
2022
Segment revenue:
Sales to external customers 736,090 658,647 877,886 955,767 3,228,390
Other income 85,658 2,742 3,051 2,828 94,279
821,748 661,389 880,937 958,595 3,322,669
Segment results 228,059 354,258 19,178 523,403 1,124,898
Reconciliation:
Interest income and
unallocated gains 8,207
Unallocated expenses (107,736)
Unallocated finance costs (55,122)
Share of profit of:
An associate 102,445
A joint venture 286,722
Profit before tax 1,359,414
----- End of picture text -----

Interim Report 2022

Unaudited HK$’000

4. Operating Segment Information (continued)

==> picture [462 x 46] intentionally omitted <==

----- Start of picture text -----

Import and
Six months ended 30 June Aluminium export of
Unaudited smelting Coal commodities Crude oil Total
----- End of picture text -----

	2021 Segment revenue: Sales to external customers 566,661 259,383 320,316 557,497 Other income 16,006 – 3,884 5,429	1,703,857 25,319
	582,667 259,383 324,200 562,926	1,729,176
	Segment results 122,061 (25,485) 10,791 240,309 Reconciliation: Interest income and unallocated gains Unallocated expenses Unallocated finance costs Share of profit of: An associate A joint venture Profit before tax	347,676 27,228 (92,115) (43,125) 77,255 172,778
		489,697

==> picture [462 x 213] intentionally omitted <==

----- Start of picture text -----

Import and
Aluminium export of
HK$’000 smelting Coal commodities Crude oil Total
Segment assets
30 June 2022 (unaudited) 752,979 569,203 485,194 3,609,881 5,417,257
31 December 2021 (audited) 554,361 602,759 622,664 3,759,396 5,539,180
Segment liabilities
30 June 2022 (unaudited) 436,800 269,299 34,003 822,706 1,562,808
31 December 2021 (audited) 436,538 258,612 66,916 803,860 1,565,926
----- End of picture text -----

11 CITIC Resources Holdings Limited

Unaudited HK$’000

Six months ended 30 June

5. Revenue, Other Income, Gains and Losses, Net

An analysis of the Group’s revenue is as follows:

==> picture [462 x 122] intentionally omitted <==

----- Start of picture text -----

2022 2021
Revenue from contracts with customers
Sale of goods:
Aluminium smelting 736,090 566,661
Coal 658,647 259,383
Import and export of commodities 877,886 320,316
Crude oil 955,767 557,497
3,228,390 1,703,857
----- End of picture text -----

(a) Disaggregated revenue information

	Aluminium smelting	Coal	Import and export of commodities	Crude oil	Total
2022
Geographical markets
China Australia Europe	– – 354,803	– – 12,350	– 841,342 –	886,500 – –	886,500 841,342 367,153
Other Asian countries Others	366,200 15,087	448,797 197,500	– 36,544	69,267 –	884,264 249,131
	736,090	658,647	877,886	955,767	3,228,390
2021
Geographical markets
China	–	–	–	557,497	557,497
Australia	–	–	313,508	–	313,508
Europe	207,101	26,655	–	–	233,756
Other Asian countries	296,336	143,636	214	–	440,186
Others	63,224	89,092	6,594	–	158,910
	566,661	259,383	320,316	557,497	1,703,857

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

==> picture [439 x 169] intentionally omitted <==

----- Start of picture text -----

2022 2021
Interest income 10,260 7,094
Handling service fees 2,867 3,688
Sale of scrap 3,029 2,426
–
Reversal of provision for inventories 2,070
Government subsidies – 2,669
Gain on disposal of items of property, plant and
equipment 740 60
Fair value gain on derivative financial instruments 84,843 12,653
Exchange (losses)/gains, net (6,468) 11,419
Others 7,215 10,468
102,486 52,547
----- End of picture text -----

Interim Report 2022

Unaudited HK$’000

Six months ended 30 June

6. Finance Costs

An analysis of finance costs is as follows:

==> picture [462 x 198] intentionally omitted <==

----- Start of picture text -----

2022 2021
Interest expense on bank and other borrowings 36,134 44,456
Interest expense on lease liabilities 900 1,426
Total interest expense on financial liabilities not at
fair value through profit or loss 37,034 45,882
Other finance charges:
Increase in discounted amounts of provisions arising from
the passage of time 11,901 4,467
–
Over-provision in prior periods (8,282)
Others 6,187 1,058
55,122 43,125
----- End of picture text -----

7. Profit Before Tax

The Group’s profit before tax is arrived at after charging/(crediting):

==> picture [462 x 137] intentionally omitted <==

----- Start of picture text -----

2022 2021
Depreciation of property, plant and equipment 223,568 205,411
Depreciation of right-of-use assets 15,599 15,894
Amortisation of other assets 766 793
Gain on disposal of items of property, plant
and equipment, net (738) (59)
Loss on disposal of other assets – 124
Fair value gain on derivative financial instruments (84,843) (12,653)
Exchange losses/(gains), net 6,468 (11,419)
----- End of picture text -----

8. Income Tax Expense

==> picture [462 x 115] intentionally omitted <==

----- Start of picture text -----

2022 2021
– –
Current – Hong Kong
Current – Elsewhere
Charge for the period 161,493 175
Overprovision in prior periods (6) (19)
Deferred 269,455 42,004
Total tax expense for the period 430,942 42,160
----- End of picture text -----

The statutory rate of Hong Kong profits tax was 16.5% (2021: 16.5%) on the estimated assessable profits arising in Hong Kong. No provision for Hong Kong profits tax was made as the Group had no assessable profits arising in Hong Kong during the Period (2021: Nil).

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

CITIC Resources Holdings Limited

Unaudited HK$’000

8. Income Tax Expense (continued)

Australia: The Group’s subsidiaries incorporated in Australia were subject to Australian income tax at a rate of 30% (2021: 30%).

Indonesia: The corporate tax rate applicable to the subsidiary which is operating in Indonesia was 25% (2021: 25%). The Group’s subsidiary owning a participating interest in the oil and gas properties in Indonesia was subject to branch tax at the effective tax rate of 15% (2021: 15%).

China: The Group’s subsidiaries registered in China were subject to corporate income tax at a rate of 25% (2021: 25%).

Kazakhstan: The Group’s subsidiary incorporated in Kazakhstan was subject to corporate income tax at a rate of 20% (2021: 20%).

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.

9. Earnings Per Share Attributable to Ordinary Shareholders of the Company

The calculation of the basic earnings per share amount was based on the profit for the Period attributable to ordinary shareholders of the Company of HK$893,288,000 (2021: HK$427,412,000) and the weighted average number of ordinary shares in issue during the Period, which was 7,857,727,149 (2021: 7,857,727,149) shares.

The Group had no potentially dilutive ordinary shares in issue during the Period and for the six months ended 30 June 2021.

10. Dividend

The Board has resolved not to pay an interim dividend for the Period (2021: Nil).

The final dividend of HK4.50 cents per ordinary share for the year ended 31 December 2021, totalling HK$353,598,000, was approved by shareholders at the annual general meeting of the Company held on 17 June 2022 and was paid on 19 July 2022.

11. Property, Plant and Equipment

During the Period, the Group acquired property, plant and equipment in an aggregate cost of HK$128,702,000 (2021: HK$221,472,000) and disposed of property, plant and equipment having an aggregate carrying amount of HK$440,000 (2021: HK$130,000).

Interim Report 2022

Unaudited HK$’000

12. Prepayments, Deposits and Other Receivables

==> picture [462 x 162] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Prepayments 120,448 22,367
Deposits and other receivables 160,775 208,446
281,223 230,813
Impairment allowance (2,319) (24,847)
278,904 205,966
Portion classified as current assets (254,029) (167,372)
Non-current portion 24,875 38,594
----- End of picture text -----

Included in the Group’s other receivables was an amount due from CCEL of HK$12,426,000 (31 December 2021: HK$35,826,000), which was interest free and repayable on demand and the other receivables from Qingdao Decheng Minerals Co., Ltd. of a compensation of HK$37,344,000 (31 December 2021: HK$39,225,000).

At 30 June 2022, other receivables of HK$2,319,000 (31 December 2021: HK$24,847,000) were impaired and fully provided. The amount of HK$13,773,000 was written off (31 December 2021: HK$11,646,000) and HK$8,775,000 was recorded in other expenses during the Period (31 December 2021: Nil).

13. Inventories

==> picture [462 x 115] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Raw materials 235,952 170,022
Work in progress 23,449 22,411
Finished goods 261,750 239,162
521,151 431,595
----- End of picture text -----

14. Trade Receivables

An ageing analysis of the trade receivables, based on the invoice date and net of loss allowance, is as follows:

==> picture [462 x 128] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Within one month 261,838 331,680
One to two months 145,859 216,475
Two to three months 89,301 82,314
Over three months 91,188 74,420
588,186 704,889
----- End of picture text -----

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

15 CITIC Resources Holdings Limited

Unaudited HK$’000

15. Derivative Financial Instruments

==> picture [462 x 128] intentionally omitted <==

----- Start of picture text -----

30 June 2022 31 December 2021
Unaudited Audited
Assets Liabilities Assets Liabilities
– –
Forward currency contracts 24,656 6,000
Forward commodity contracts – – – 643
Embedded derivatives – – 8,145 –
EHA3 90,322 – 6,867 –
114,978 – 21,012 643
----- End of picture text -----

Certain members of the Group enter into derivative financial instruments in the normal course of business in order to hedge their exposure to fluctuations in foreign exchange rates, commodity prices and electricity prices.

16. Cash and Deposits

==> picture [462 x 193] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Cash and bank balances 1,289,585 748,355
Time deposits 458,280 706,062
1,747,865 1,454,417
Less: Time deposit with original maturity more than
three months – (58,939)
Time deposit with original maturity more than one year (91,647) (88,754)
Cash and cash equivalents 1,656,218 1,306,724
Deposits with a fellow subsidiary 829,913 559,910
–
Time deposit with original maturity more than three months 58,939
Cash and deposits 2,486,131 1,925,573
----- End of picture text -----

17. Accounts Payable

An ageing analysis of the accounts payable, based on the invoice date, is as follows:

==> picture [462 x 115] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Within one month 109,255 135,719
One to three months 118 61
Over three months 1,625 23
110,998 135,803
----- End of picture text -----

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

Interim Report 2022

Unaudited HK$’000

18. Bank and Other Borrowings

==> picture [462 x 102] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Notes Unaudited Audited
Bank borrowings – unsecured (a) 2,471,629 2,489,149
Other borrowings – unsecured (b) 858,000 1,170,000
3,329,629 3,659,149
----- End of picture text -----

Notes:

(a) As at 30 June 2022, the bank borrowings included:
(i) trade finance denominated A$41,915,429 (HK$225,229,000), which are interest-bearing at the Bank Bill Swap Bid Rate (or cost of funds) plus margin per annum;
(ii) a bank loan denominated US$159,524,000 (HK$776,880,000), which is interest-bearing at the London interbank offered rates (“LIBOR“) plus margin per annum; and
(iii) a bank loan denominated US$188,400,000 (HK$1,469,520,000) obtained from a subsidiary of the Company’s ultimate holding company, which is interest-bearing at LIBOR plus margin per annum.
(b) The other borrowing denominated US$110,000,000 (HK$858,000,000) is a loan obtained from a subsidiary of the Company’s ultimate holding Company. The other borrowing is interest-bearing at three-months LIBOR plus margin per annum.

==> picture [462 x 246] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Bank loans repayable:
Within one year or on demand 374,989 240,669
In the second year 2,096,640 925,600
–
In the third to fifth years, inclusive 1,322,880
2,471,629 2,489,149
Other borrowing repayable:
– –
In the second year
In the third to fifth years, inclusive 858,000 1,170,000
Total bank and other borrowings 3,329,629 3,659,149
Portion classified as current liabilities (374,989) (240,669)
Non-current portion 2,954,640 3,418,480
----- End of picture text -----

CITIC Resources Holdings Limited

Unaudited HK$’000

19. Share Capital

==> picture [462 x 151] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Authorised:
10,000,000,000 (31 December 2021: 10,000,000,000)
ordinary shares of HK$0.05 each 500,000 500,000
Issued and fully paid:
7,857,727,149 (31 December 2021: 7,857,727,149)
ordinary shares of HK$0.05 each 392,886 392,886
----- End of picture text -----

20. Litigation and Contingent Liabilities

In April 2020, Weihai commenced three claims (the “ Claims ”) in the Shandong High People’s Court against, amongst others, an indirect wholly-owned subsidiary of the Company, CACT. It is alleged that the Claims relate to three letters of credit issued in favour of CACT as payment for the sale by CACT to Qingdao Decheng Minerals Co., Ltd. of certain quantity of aluminium stored at bonded warehouses at Qingdao Port, China in 2014. CACT refutes the Claims and has engaged local counsel in China to defend the Claims accordingly. The Shandong High People’s Court has issued a first instance judgment that CACT is not liable for Weihai’s losses as there is no evidence of any intention to commit fraud on the part of CACT.

However, the Shandong High People’s Court published a notice on 16 May 2021, which states that Weihai submitted an appeal to the first instance judgement at the Supreme People’s Court in Beijing and the appeal hearing was held on 19 October 2021. Up to the date of this report, no judgment has been issued by the Supreme People’s Court in Beijing in respect of the appeal hearing.

21. Commitments

The Group’s capital expenditure commitments are as follows:

==> picture [462 x 98] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Contracted, but not provided for:
Capital expenditure in respect of infrastructure and
acquisition of items of property, plant and equipment 365,417 415,561
----- End of picture text -----

In addition, the Group’s share of a joint venture’s capital expenditure commitments are as follows:

==> picture [462 x 98] intentionally omitted <==

Interim Report 2022

Unaudited HK$’000

22. Related Party Transactions and Connected Transactions

In addition to the transactions and balances disclosed elsewhere in these Financial Statements, the Group had the following material transactions with its related parties:

==> picture [461 x 111] intentionally omitted <==

----- Start of picture text -----

(a) Six months ended 30 June
Unaudited 2022 2021
Subsidiaries of the ultimate holding company:
Interest expenses on lease liability 33 157
Interest expense on bank and other borrowings 26,348 35,572
Handling service fees 2,867 3,688
Management fee income 1,784 1,530
----- End of picture text -----

The above transactions were made based on mutually agreed terms.

(b) Outstanding balances with related parties:

==> picture [439 x 124] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Subsidiaries of the ultimate holding company:
Cash and deposits 831,628 562,081
Bank borrowings 1,469,520 1,544,400
Other borrowing [1] 858,000 1,170,000
Lease liabilities 3,719 5,414
----- End of picture text -----

1 an unsecured loan having a tenor of three years commencing from March 2021. The loan is interest-bearing at LIBOR plus margin.

==> picture [439 x 115] intentionally omitted <==

----- Start of picture text -----

Six months ended 30 June
Unaudited 2022 2021
Salaries 4,930 13,217
Directors’ fee 145 435
Allowances 561 1,080
Pension scheme contributions 407 453
6,043 15,185
----- End of picture text -----

19 CITIC Resources Holdings Limited

Unaudited HK$’000

22. Related Party Transactions and Connected Transactions (continued)

(d) The Group had total future minimum lease payments under non-cancellable operating leases with related parties falling due as follows:

==> picture [439 x 103] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021
Unaudited Audited
Within one year 4,528 6,290
In the second to fifth years, inclusive 764 2,403
5,292 8,693
----- End of picture text -----

23. Fair Value and Fair Value Hierarchy of Financial Instruments

The fair values of financial assets included in prepayments, deposits and other receivables, trade receivables, cash and deposits, accounts payable, and financial liabilities included in accrued liabilities and other payables approximate to their carrying amounts largely due to the short term maturities of these instruments.

Each principal subsidiary of the Company is responsible for its own fair value measurement of financial instruments. The finance team of the Company is responsible for the review and calibration of the parameters of the valuation processes. The valuation processes and results are discussed with the chief financial officer twice a year for interim and annual financial reporting purposes.

The fair values of the financial assets and liabilities are stated in the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

(a) The fair values of the non-current portion of time deposit and bank and other borrowings were calculated by discounting the expected future cash flows using rates currently available for instruments which had similar terms, credit risk and remaining maturities. The Group’s own nonperformance risk for time deposit and bank and other borrowings as at the end of the Period was assessed to be insignificant.
(b) The Group enters into derivative financial instruments with various counterparties, principally financial institutions with high credit quality. Derivative financial instruments, including forward currency contracts, forward commodity contracts, interest rate swap contracts, embedded derivative in provisional pricing arrangements and EHA3, were measured using valuation techniques similar to forward pricing and discounted cash flow models, which means using present value calculations. The fair values of forward currency contracts, forward commodity contracts, embedded derivative in provisional pricing arrangements and EHA3 were the same as their carrying amounts.
(i) The fair values of forward currency contracts, forward commodity contracts, embedded derivative in provisional pricing arrangements and EHA3 were based on valuation techniques using significant observable market inputs and insignificant unobservable market inputs.

Interim Report 2022

Unaudited HK$’000

23. Fair Value and Fair Value Hierarchy of Financial Instruments (continued)

Fair value hierarchy

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments.

Assets measured at fair value:

==> picture [462 x 138] intentionally omitted <==

----- Start of picture text -----

Fair value measurement using
quoted prices significant significant
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3) Total
30 June 2022 (unaudited)
Derivative financial instruments – 114,978 – 114,978
31 December 2021 (audited)
Derivative financial instruments – 21,012 – 21,012
----- End of picture text -----

Liabilities measured at fair value:

==> picture [462 x 137] intentionally omitted <==

----- Start of picture text -----

Fair value measurement using
quoted prices significant significant
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3) Total
30 June 2022 (unaudited)
Derivative financial instruments – – – –
31 December 2021 (audited)
Derivative financial instruments – 643 – 643
----- End of picture text -----

During the Period, the Group did not have any transfer of fair value measurements between Level 1 and Level 2 nor any transfers into or out of Level 3 for both financial assets and financial liabilities (2021: Nil).

CITIC Resources Holdings Limited

Business Review and Outlook

Review

In the first half of 2022, the global economy witnessed increasingly more uncertainties. Factors such as the US dollar interest rate hike, recurrence of COVID-19 pandemic in China, the end of production curbs by OPEC and major oil-producing countries, the state of emergency in Kazakhstan, and the frequent occurrence of geopolitical events such as the Russia-Ukraine conflict had an impact on the supply-demand relationship of crude oil and other bulk commodities. On the whole, risk aversion and panic emotions continued to push commodity prices up. From January to June, the average oil price was US$107.7 per barrel, up by 65.7% yearon-year. The realized prices of aluminum smelting and coal also increased substantially, driving the overall performance of the Group to improve significantly.

In the face of the complexity and uncertainty of external environments, the Group strives to make progress and seeks changes while maintaining stability, and solves problems by means of development. Through continuous refinement for cost reduction and efficiency improvement, deepening of reform, vigorous innovation, strengthening of teams, and continuous improvement in management, the Group has achieved high-quality development in terms of operating performance. During the period, the Group achieved revenue of HK$3,230,000,000, representing an increase of HK$1,520,000,000, or 89.5% year-on-year; recorded net profit attributable to the shareholders of HK$890,000,000, representing an increase of nearly a double yearon-year. As at 30 June 2022, total assets amounted to HK$13,250,000,000, and net assets attributable to the shareholders were HK$7,350,000,000. The gearing ratio further dropped to 46%, being the lowest levels in recent years.

Crude oil business

During the period, the Group seized the opportunity of rising oil prices to increase production. In the first half of 2022, three oilfields of the Group achieved working interest output of 4,805,000 barrels, representing an increase of 185,000 barrels, or approximately 4.0% year-on-year. In particular, the production from the Karazhanbas oilfield increased by 117,000 barrels year-on-year due to its production improvement properly deployed in advance. The Yuedong oilfield production increased by 83,000 barrels, mainly due to the increase in production brought about by new wells gradually commencing production. The Seram block in Indonesia achieved a reduction in its comprehensive costs through refined management, and its production decreased by 15,000 barrels year-on-year during the period.

In terms of results, the Karazhanbas oilfield is taking active measures to address the adverse impact of the increased sales discount caused by Russia-Ukraine conflict on the oilfield’s profits and will continue to promote the progress of the produced water treatment plant project to ensure smooth development of the crude oil business. In addition, the application for export tariff reduction and exemption has been restarted during the period, and the selling price of asphalt products from the Karazhanbas oilfield has been significantly increased through public bidding. These measures will help further improve the Company’s profitability. During the period, the Karazhanbas oilfield recorded a working interest output of 3,533,000 barrels and achieved net profit attributable to the shareholders of approximately HK$287,000,000, representing a significant increase of 66% year-on-year. The Yuedong oilfield further promoted the adjustment of development plan, increased its exploration and development efforts and enhanced its tax planning, achieving a working interest output of 1,188,000 barrels and net profit attributable to the shareholders of approximately HK$322,000,000, representing an increase of HK$140,000,000 year-on-year. In respect of the Seram oilfield in Indonesia, the Group is actively promoting the Lofin-2 gas trial to enhance the value of the project. During the period, the Seram oilfield recorded a working interest output of 84,000 barrels and achieved net profit attributable to the shareholders of approximately HK$22,000,000, representing an increase of approximately HK$28,000,000 year-on-year.

Interim Report 2022

Non-oil businesses

In the first half of 2022, the Group’s non-oil business achieved net profit attributable to the shareholders of approximately HK$398,000,000 (representing an increase of approximately HK$230,000,000 year-onyear), mainly due to the increases in aluminum and coal prices and the fair value gain on derivative financial instruments under the Australian Power Hedging Agreement during the period.

Metals

In the first half of 2022, due to the combined effect of factors such as Russian sanctions, freight tensions, and the easing of the COVID-19 pandemic, aluminum prices continued to rise, with an average selling price of US$3,232 per ton from January to June, representing an increase of approximately 26.5% year-on-year. Despite the increases in alumina prices and electricity charges in line with the rise in aluminum ingot prices, the gross profit margin increased further during the period. In addition, the results of the Group’s aluminium smelters segment have significantly improved as a result of the increase in the fair value gain on derivative financial instruments under the Australian Power Hedging Agreement.

During the period, the sales volume of aluminum smelting at the Portland Aluminium Smelter of the Group was 29,000 tonnes, which was basically held steady year-on-year, accomplishing 44.1% of the annual budget of sales. According to the plan, the production capacity of the Group’s aluminum smelting business will be greatly improved in the second half of the year, and it is expected to achieve the annual production task.

As a result of the increase in alumina prices, the Group’s profit attributable to AWC under the equity method increased significantly compared to the same period last year. During the period, AWC paid dividends of HK$61,000,000, and the Group accounted for approximately HK$102,000,000 in AWC’s profit, with a market capitalisation of approximately US$280,000,000 (for the same period of 2021: US$330,000,000) at the closing price at the end of June 2022.

Coal

In the first half of 2022, due to the ban on imports of Russian coal by Western countries and the stagnant supply in major coal producing regions in Australia due to the rainy season, the international seaborne metallurgical market went upwards amid fluctuations, and the average realized selling price of CMJV was US$334.7 per tonne, representing an increase of 2.7 times year-on-year. On the production side, due to the increase in freight, energy and labour costs, the cost of coal production from January to June 2022 was US$153.2 per tonne, representing a significant increase of 57.2% year-on-year. Notwithstanding this, taking all factors into account, the overall gross profit of the coal business still greatly improved. During the period, the Group’s CMJV achieved a net profit attributable to the shareholders of approximately HK$250,000,000 from its coal business. Coal sales of 252,000 tonnes were achieved, representing a decrease of 113,000 tonnes yearon-year, mainly due to the flooding caused by heavy rainfall in Queensland, Australia in the first half of 2022, which affected the outbound coal sales volume.

23 CITIC Resources Holdings Limited

Import and export of commodities

In the first half of 2022, the Group achieved a steel import trade volume of 71,000 tonnes, representing a significant increase of 33,000 tonnes or 87.5% year-on-year. The Group’s import and export of commodities segment achieved a net profit attributable to the shareholders of HK$10,000,000, representing an increase of 99.5% year-on-year.

Outlook

Looking forward to the second half of 2022, the global political and economic situation will remain uncertain, with the far-reaching impact of the Russia-Ukraine conflict continuing, and exchange rate risk and commodity price risk remaining prominent. While paying attention to major risk issues, the Group will also make contingency plans and strengthen its risk control, compliance and capital management and control to ensure stable development of the Company.

In the second half of the year, the special work of “cost reduction and efficiency improvement” will continue to be a key focus of the Group. Under the circumstances of high oil prices and inflation, the Company’s cost control will face significant challenges. On the basis of its ongoing efforts in “cost reduction and efficiency improvement”, the Group will take the implementation of “cost reduction and efficiency improvement” measures as the mainstream of cost control. On the one hand, the Group will continue to deepen the work of “cost reduction and efficiency improvement”, gradually realizing the refined management in the areas of node, process, standardization and informatization, and building a refined management system for all employees, all-rounded and comprehensive business chain and whole process to further enhance asset value. On the other hand, the Group will seize the trading opportunity when the prices of bulk commodities are rising, maintain and increase the value of state-owned assets, and actively seize new opportunities for development while promoting asset transfer.

In the second half of 2022, the Group will deepen its technological innovation to enhance production efficiency and economic benefits; properly manage the impact of geopolitical events on the Company; coordinate safety production and pandemic prevention and control; and strive to achieve better results and bring better returns to shareholders.

Interim Report 2022

HK$’000

Financial Review

Group’s financial results:

Operating results and ratios

==> picture [485 x 154] intentionally omitted <==

----- Start of picture text -----

Six months ended 30 June
2022 2021
Unaudited Audited Increase
Revenue 3,228,390 1,703,857 89.5%
EBITDA [1] 1,654,469 754,920 119.2%
Adjusted EBITDA [2] 1,947,345 1,021,610 90.6%
Profit attributable to shareholders 893,288 427,412 109.0%
Adjusted EBITDA coverage ratio [3] 23.6 times 15.2 times
Earnings per share (Basic) [4] HK 11.37 cents HK 5.44 cents
----- End of picture text -----

Financial position and ratios

==> picture [485 x 176] intentionally omitted <==

----- Start of picture text -----

30 June 31 December
2022 2021 Increase /
Unaudited Audited (decrease)
Cash and deposits 2,486,131 1,925,573 29.1%
Total assets 13,254,307 12,703,740 4.3%
Total debt [ 5] 3,381,932 3,726,714 (9.3%)
Net debt [ 6] 895,801 1,801,141 (50.3%)
Equity attributable to shareholders 7,353,331 6,944,417 5.9%
Current ratio [ 7] 2.1 times 2.3 times
Net debt to net total capital [ 8] 10.9% 20.6%
Net asset value per share [ 9] HK$0.94 HK$0.88
----- End of picture text -----

1 profit before tax + finance costs + depreciation + amortisation

2 EBITDA + (share of finance costs, depreciation, amortisation, income tax expense and non-controlling interests of a joint venture)

3 adjusted EBITDA/(finance costs + share of finance costs of a joint venture)

4 profit attributable to shareholders/weighted average number of ordinary shares in issue during the period

5 bank and other borrowings + lease liabilities

6 total debt – cash and cash equivalents

7 current assets/current liabilities

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

9 equity attributable to shareholders/number of ordinary shares in issue at end of period

CITIC Resources Holdings Limited

The global economy and commodity markets are recovering from the historic collapse in demand caused by the COVID-19 in 2021. The global crude oil inventory surplus that built up last year is being worked off and global oil stocks reserves is returning to pre-pandemic levels in 1H 2022.

In comparing with the same period in 2021, the Revenue of the Group was climbed up by 89.5%. The Group recorded a profit attributable to shareholders of HK$893.3 million in 1H 2022 in comparing with a profit attributable to shareholders of HK$427.4 million in 1H 2021. This was mainly due to a combination effect of a boosted-up crude oil prices and also improvement in commodity prices in 1H 2022. The substantial increase in profit attributable to shareholders for the Period was primarily attributable to the following factors:

a significant improvement in operating results of the oil business of the Group including a substantial share of profit of HK$286.7 million from the Group’s investment in Karazhanbas oilfield when comparing with a record of share of profit of HK$172.8 million in the same period of last year. The improvement in profitable operating result from the oil business of the Group as a whole was mainly attributable to an increase in average crude oil realised price and stringent ongoing costs control during the Period; and
a significant improvement in operating results of the Group’s aluminium smelting segment and coal segment for the Period due to an increase in the average selling price of aluminium and coal as compared with the same period of last year as well as an increase of fair value gain on derivative financial instruments of electricity hedging agreements in Australia.

The following is a description of the operating activities in each of the Group’s business segments during the Period, with a comparison of their results against those in 1H 2021.

Aluminium smelting

The Group holds a 22.5% participating interest in the PAS JV. The PAS sources alumina and produces aluminium ingots.
Revenue HK$736.1 million (2021: HK$566.7million) ▲ 30% Segment results HK$228.1 million (2021: HK$122.1 million) ▲ 87%
In view of the recovery in global major economies leading to higher aluminium demand as well as disruptions to logistics transporting aluminium ingots, the average achieved selling price increased by 27% as compare to 1H 2021. In conjunction with increase in the sales volume, the segment recorded an increase in revenue, gross margin and results for the Period.

The Group’s aluminium smelting business is a net US$ denominated asset while certain costs are payable in A$. Fluctuations between A$ and US$ throughout the Period caused a net exchange gain of HK$19.9 million (2021: a net exchange gain of HK$6.9 million).

In January 2017, the Group entered into EHA2. The EHA2 swaps a floating electricity price for a fixed electricity price to minimise the variability in cash flow. Hedge accounting has been applied to the EHA2. In accordance with HKFRSs, the EHA2 is considered to be a derivative financial instrument and revalued at the end of each reporting period during its term and on its expiry, based on forward market prices of electricity with its fair value gain or loss recognised in the consolidated statement of comprehensive income. EHA2 ended at 31 July 2021.
In April 2021, EHA3 was signed between the Group and various independent electricity suppliers. The counterparties to the Group under the EHA3 were AGL Energy Limited, Alinta Energy Pty Limited and Origin Energy Limited. The EHA3 effectively allowed the PAS to hedge the spot price for electricity for a specific load from 1 August 2021 to 31 July 2026. In accordance with HKFRSs, components of EHA3, which are linked to several market factors, are considered a financial instrument embedded in the EHA3. Movements in its fair value are recognised as gain or loss in the consolidated income statement. For the period ended 30 June 2022, the EHA3 fair valuation gain amounted to HK$83.5 million.

Interim Report 2022

Coal

The Group holds a 14% participating interest in the CMJV and interests in a number of coal exploration projects in Australia. The CMJV is a major producer of low volatile pulverized coal injection coal in the international seaborne market.
Revenue HK$658.6 million (2021: HK$259.3 million) ▲ 154% Segment results a profit of HK$354.3 million (2021: a loss of HK$25.5 million) N/A

The post-COVID recovery of the global economy, ban on imports of energy sources on Russia, disruptions to coal supplies due to logistics challenges and production issues encountered at various mines, have led the average achieved selling price to rise by 268% as compared to 1H 2021. Despite the decrease in sales volume by 31%, the segment recorded a significant improvement in revenue, gross margin and a turnaround result as compared to 1H 2021.

The Group’s coal business is a net US$ denominated asset while most of its costs are payable in A$. Fluctuations between A$ and US$ throughout the Period caused a net exchange gain of HK$11.0 million (2021: a net exchange gain of HK$2.0 million).

Import of commodities

Imported products include steel, and vehicle and industrial batteries and tyres from China and other countries into Australia. The Group has ceased its operations on the importation of vehicle and industrial batteries and tyres in the first half of 2021.
Revenue HK$877.9 million (2021: HK$320.3 million) ▲ 174% Segment results HK$19.2 million (2021: HK$10.8 million) ▲ 78%

Attributable to an increase in both sales volume and selling price, the segment recorded a significant increase in both revenue and segment results for the Period.

The Group’s import of commodities business is a net A$ denominated asset while certain costs are payable in US$. Fluctuations between A$ and US$ throughout the Period resulted in a net exchange loss of HK$1.4 million (2021: a net exchange gain of HK$0.2 million).

In April 2020, Weihai commenced three claims (the “Claims”) in the Shandong High People’s Court against, amongst others, an indirect wholly-owned subsidiary of the Company, CACT. It is alleged that the Claims relate to three letters of credit issued in favour of CACT as payment for the sale by CACT to Qingdao Decheng Minerals Co., Ltd. of certain quantity of aluminium stored at bonded warehouses at Qingdao Port, China in 2014. CACT refutes the Claims and has engaged local counsel in China to defend the Claims accordingly. The Shandong High People’s Court has issued a first instance judgment that CACT is not liable for Weihai’s losses as there is no evidence of any intention to commit fraud on the part of CACT.

27 CITIC Resources Holdings Limited

Bauxite mining and alumina refining

The Group has an interest in a world-class global portfolio of upstream mining and refining operations in the aluminium sector through its 9.6117% equity interest in AWC, a leading Australian company listed on the ASX (Stock Code: AWC). Other subsidiaries of CITIC Limited have a total 9.3070% equity interest in AWC. AWC is treated as an associate of the Group.

AWC has significant global interests in bauxite mining, alumina refining and selected aluminium smelting operations through its 40% ownership of the Alcoa World Alumina and Chemicals joint venture, the world’s largest alumina producer.

The Group accounts for its share of profit or loss in AWC using the equity method.

Share of profit of an associate HK$102.4 million (2021: HK$77.2 million) ▲ 33%

The Group recorded a share of profit in respect of its interest in AWC. For the Period, the Group recorded an increase in share of profit of AWC as a result of rise in average selling price of alumina.

During the Period, the Group received a dividend of HK$60.9 million (2021: HK$$63.1 million) from AWC.

Detailed financial results of AWC are available on its website at http://www.aluminalimited.com.

Crude oil (the Seram Island Non-Bula Block, Indonesia)

CITIC Seram, an indirect wholly-owned subsidiary of the Company, owns a 41% participating interest in the PSC until 31 October 2039. CITIC Seram is the operator of the Seram Block.

As at 31 December 2021, in respect of the PSC, the Seram Block had estimated proved oil reserves of 3.0 million barrels as determined in accordance with the standards of the PRMS.

For the Period, the segment results of CITIC Seram recorded a profit of HK$45.4 million (2021: a loss of HK$4.8 million). The following table shows a comparison of the performance of the Seram Block for the periods stated:

==> picture [484 x 148] intentionally omitted <==

----- Start of picture text -----

1H 2022 1H 2021
(41%) (41%) Change
Average benchmark Mean of
Dated Brent crude oil (US$ per barrel) 107.7 65.0 ▲ 66%
Average crude oil realised price (US$ per barrel) 106.8 – N/A
Sales volume (barrels) 83,100 – N/A
Revenue (HK$ million) 69.3 – N/A
Total production (barrels) 84,400 99,600 ▼ 15%
Daily production (barrels) 470 550 ▼ 15%
----- End of picture text -----

CITIC Seram seized the opportunity of rising crude oil price in its attempt to boost its sales revenue.

In terms of the Oseil crude oil sales, the pricing mechanism was based on HSFO fuel oil previously. The HSFO prices had been depressed in the recent years which could not reflect the underlying value of Oseil crude oil. CITIC Seram switched the pricing formula by using the Brent quotations as the benchmark. Starting from 2021, the pricing mechanism had been changed which was based on average dated Brent quotations for the month of bill of lading. As a result, the realised crude oil sales price had been increased significantly.

Production decreased by 15% year-on-year due to natural oil decline of existing wells.

Interim Report 2022

Production would have decreased considerably due to the continuing natural decline of existing wells, a new development well was drilled in the Seram Block and started to produce oil since July 2021.

Under a current stringent cost control program coupled with boosted sales, this resulted in an improvement in segment result.

Since there is no tax loss deduction from previous PSC, during the Period, under current PSC, corporate income tax and branch tax based on the 1H 2022 pre-tax profit and profit after corporate income tax, were paid at a rate of 25% and 20%, respectively. Accordingly, an income tax expenses of HK$22.6 million was debited to “Income tax expenses” in the condensed consolidated income statement for 1H 2022.

The Lofin area has been temporary plugged and abandoned since the second half of 2015. CITIC Seram reactivated exploration activities in Lofin area from 2020.

In January 2021, CITIC Seram was advised by SKK MIGAS (a special task force established by the government of Indonesia to manage the upstream oil and gas business activities of the country) to offer a 10% participating interest under the PSC to a Regional-Owned Company, MEA appointed by Local Government of Maluku. MEA will set up a subsidiary to receive such divestment of 10% participating interest. Based on a letter issued by The Minister of Energy and Mineral Resources in the Republic of Indonesia, the price for the10% participating interest was 10% of the performance bond provided by the PSC at the time of extension.

In March 2021, CITIC Seram submitted an offer letter to MEA and at the same time received letter of intent from MEA. The transfer is subject to the decision of MEA after due diligence and the final approval from the government of Indonesia. As at the date of this report, the transfer has not been completed yet.

Crude oil (the Hainan-Yuedong Block, China)

CITIC Haiyue, an indirect wholly-owned subsidiary of the Company, owns a 90% interest in Tincy Group.

Pursuant to a petroleum contract entered into with CNPC in February 2004, as supplemented by an agreement signed in May 2010, Tincy Group holds the right to explore, develop and produce petroleum from the Hainan-Yuedong Block until 2034. Tincy Group is the operator of the Hainan-Yuedong Block in cooperation with CNPC.

As at 31 December 2021, the Yuedong oilfield had estimated proved oil reserves of 29.5 million barrels as determined in accordance with the standards of the PRMS.

CITIC Resources Holdings Limited

For the Period, the segment results of CITIC Haiyue recorded a profit of HK$478.0 million (2021: HK$245.2 million), being a 95% increase. The following table shows a comparison of the performance of the Yuedong oilfield for the periods stated:

==> picture [462 x 153] intentionally omitted <==

----- Start of picture text -----

1H 2022 1H 2021
(Tincy Group’s share) Change
Average benchmark quote:
Platts Dubai crude oil (US$ per barrel) 102.1 63.6 ▲ 61%
Average crude oil realised price (US$ per barrel) 98.1 63.8 ▲ 54%
Sales volume (barrels) 1,148,000 1,126,000 ▲ 2%
Revenue (HK$ million) 886.5 557.5 ▲ 59%
Total production (barrels) 1,188,000 1,105,000 ▲ 8%
Daily production (barrels) 6,600 6,100 ▲ 8%
----- End of picture text -----

A 59% increase in revenue was a result of a 54% increase in the average crude oil realised price coupled with a 2% increase in sales volume filtered from increase in production when compared to 1H 2021. Production increase by 8% as compared to 1H 2021 which is mainly attributable to an increase in number of production wells in the Yuedong oilfield in 1H 2022.
Cost of sales per barrel decreased by 31% as compared to 1H 2021, of which (a) depreciation, depletion and amortisation per barrel increased by 6% as a result of a downward revision of estimated proved developed oil reserves; and (b) direct operating costs per barrel increased by 73% mainly due to a significant increase in Petroleum Revenue Tax when compared to 1H 2021.
Under a stringent cost control program, only essential repairs and maintenance works have been deployed to maintain production level of existing wells. Drilling program has been resumed. Capital expenditure will continue to be applied in respect of drilling new wells in the Yuedong oilfield. It is committed to apply new technologies to improve production capacity of Yuedong oilfield.

Crude oil (the Karazhanbas oilfield, Kazakhstan)

CITIC Oil & Gas Holdings Limited, an indirect wholly-owned subsidiary of the Company, and JSC KazMunaiGas Exploration Production, through CCEL, jointly own, manage and operate KBM. Effectively, the Group owns 50% of the issued voting shares of KBM (which represents 47.31% of the total issued shares of KBM).

CCEL is an investment holding company and its operating subsidiaries are principally engaged in the development, production and sale of oil and holds the right to explore, develop, produce and sell oil from the Karazhanbas oilfield until 2035, production and sale of road bitumen and clarified oil, and provision of oilfield related services in Kazakhstan.

As at 31 December 2021, the Karazhanbas oilfield had estimated proved oil reserves of 156.2 million barrels as determined in accordance with the standards of the PRMS.

The Group accounts for its share of profit or loss in CCEL using the equity method.

Share of profit of a joint venture HK$286.7 million (2021: HK$172.8 million) ▲ 66%

Interim Report 2022

The following table shows a comparison of the performance of the Karazhanbas oilfield for the periods stated:

==> picture [462 x 247] intentionally omitted <==

----- Start of picture text -----

1H 2022 1H 2021
(50%) (50%) Change
Average benchmark end-market quotes:
Urals Mediterranean crude oil (US$ per barrel) 84.6 63.6 ▲ 33%
Dated Brent crude oil (US$ per barrel) 107.7 65.0 ▲ 66%
Average crude oil realised price (US$ per barrel) 87.1 62.3 ▲ 40%
Sales volume (barrels) 3,123,000 2,795,000 ▲ 12%
Revenue (HK$ million) 2,121.6 1,359.1 ▲ 56%
Total production (barrels) 3,533,000 3,416,000 ▲ 3%
Daily production (barrels) 19,500 18,900 ▲ 3%
Bitumen
Average selling price (US$/tonne) 161.6 116.3 ▲ 39%
Sales volume (tonnes) 98,000 95,000 ▲ 3%
Revenue (HK$ million) 123.8 86.5 ▲ 43%
Total production (tonnes) 99,000 97,000 ▲ 2%
----- End of picture text -----

Revenue of crude oil increased by 56% when compared to 1H 2021 as a result of 12% increase in sales volume and 40% increase in the average crude oil realised price. The average crude oil realised price was impacted by the increased sales discount caused by Russia-Ukraine conflict. When compared to 1H 2021, a 43% increased in revenue of bitumen during the Period was a result of a 39% increase in the average selling price of bitumen couple with a 3% increase in sales volume. Production of crude oil increased by 3% as compared to 1H 2021.

In CCEL’s consolidated income statement, “Cost of sales” includes MET while “Selling and distribution costs” includes export duty and rent tax. Different progressive rates are applied in respect of these taxes. The applicable rate of MET is determined by reference to production volume whereas the applicable rates of export duty and rent tax are determined by reference to average oil prices.

MET is charged on production volume on a quarterly basis at rates per tonne by reference to the average oil price for the quarter. Export duty is charged on export volume on a monthly basis at rates per tonne by reference to the average oil price for the month. Rent tax is charged on export revenue on a quarterly basis at rates per US$ amount by reference to the average oil price for the quarter.

Cost of sales per barrel was increased by 9% when compared to 1H 2021, of which (a) direct operating costs per barrel increased by 14% mainly as a result of an increase in wages and salaries; and (b) depreciation, depletion and amortisation per barrel decreased by 4%.

Selling and distribution costs per barrel increased by 71% as compared to 1H 2021. As export duty and rent tax are charged at progressive rates which are determined by reference to average oil prices, export duty per barrel and rent tax per barrel increased by 54% and 141%, respectively, in line with increases in average oil prices.

31 CITIC Resources Holdings Limited

Liquidity, Financial Resources and Capital Structure

Cash and Deposits

As at 30 June 2022, the Group maintained strong liquidity with undrawn bank facilities of HK$1,840.6 million and had cash and deposits in total amount of HK$2,486.1 million, comprising cash and cash equivalent of HK$1,656.2 million and deposits with a fellow subsidiary of HK$829.9 million.

Borrowings

As at 30 June 2022, the Group had total debt of HK$3,381.9 million, which comprised:

unsecured bank borrowings of HK$2,471.6 million;
unsecured other borrowing of HK$858.0 million; and
lease liabilities HK$52.3 million

Most of the transactions of the Group’s import and export of commodities business are debt funded. However, in contrast to term loans, these borrowings are self-liquidating, transaction specific and of short durations, and matching the terms of the underlying transaction. Upon the receipt of sale proceeds following the completion of a transaction, the related borrowings are repaid accordingly.

In December 2019, the Company entered into an unsecured 4-year committed US$200.0 million (HK$1,560.0 million) credit facility agreement comprising of US$100.0 million term loan and US$100.0 million revolving loan in form of a self-arranged club loan with 5 financial institutions (the “ A Loan ”) commencing from 31 December 2019. The purpose of the A Loan is to refinance existing indebtedness and/or general corporate funding requirement to support the operation and growth of the business of the Group. As at 30 June 2022, the outstanding balance of the A Loan was US$100.0 million (HK$780.0 million).

In March 2021, the Company entered into a facility agreement with CITIC Finance International Limited (a fellow subsidiary of the Company) in respect of an unsecured 3-year term loan facility of US$150.0 million (HK$1,170.0 million) (the “ B Loan ”). The proceeds of the B Loan was used for the prepayment of the US$500.0 million (HK$3,900.0 million) loan amounting to US$150.0 million (HK$1,170.0 million) on 30 March 2021.On 31 March 2022 and 30 June 2022, a partial amount of the B loan totaling US$40.0 million(HK$312.0 million) were prepaid by utilizing the Company’s internal sources of available fund. As at 30 June 2022, the outstanding balance of the B Loan was US$110.0 million (HK$858.0 million).

In June 2021, a wholly-owned subsidiary of the Company entered into an unsecured 3-year committed US$200.0 million (HK$1,560.0 million) credit facility agreement with China CITIC Bank International Limited (a fellow subsidiary of the Company) (the “ C Loan ”) commencing from 24 June 2021. The proceeds of the C Loan was mainly used for the prepayment of the remaining outstanding balance of the US$500.0 million (HK$3,900.0 million) loan amounting to US$200.0 million (HK$1,560.0 million) on 30 June 2021. On 30 June 2022, a partial amount of the C loan totaling US$10.0 million (HK$78.0 million) were prepaid by utilizing the Company’s internal sources of available fund. As at 30 June 2022, the outstanding balance of the C Loan was US$190.0 million (HK$1,482.0 million).

Interim Report 2022

The Group leases certain plant and machinery for its aluminium and coal mine operations under finance leases. The lease liabilities arising from these finance leases as at 30 June 2022 were HK$16.0 million.

As at 30 June 2022, the Group’s net debt to net total capital was 10.9% (31 December 2021: 20.6%). Of the Group’s total debt, HK$390.3 million was repayable within one year, including unsecured bank loan, trade finance and lease liabilities.

Share capital

There was no movement in the share capital of the Company 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, embedded derivatives and electricity hedge agreements. Their purpose is to manage the foreign currency risk, price risk, interest rate risk and inflation risk arising from the Group’s operations and sources of finance.

New Investment

There was no new investment concluded during the Period.

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.

33 CITIC Resources Holdings Limited

Employees and Remuneration Policies

As at 30 June 2022, the Group had 199 full time employees (2021: 179), including management and administrative staff. In the first half of 2022, the remuneration of these full-time employees was approximately HK$81.7 million (2021: HK$72.7 million).

In addition, the Group would share the employee remuneration of its investments as an operator (including the Seram Block, Indonesia and Hainan-Yuedong Block, China) and jointly owned investments (PAS and CMJV and some exploration rights), with approximately 1,800 employees and contract employees in total (2021: 1,800) and amounting to approximately HK$102.8 million (2021: HK$85.0 million).

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 Indonesia.

The employees of the Group’s subsidiaries which operate in China are required to participate in a central pension scheme operated by the local municipal government. These subsidiaries are required to contribute a certain percentage of their payroll costs to the central pension scheme.

The Group operates the following contribution retirement benefit schemes for its employees:

(a) a defined scheme under the superannuation legislation of Australia for those employees in Australia who are eligible to participate; and
(b) a defined scheme under the Hong Kong Mandatory Provident Fund Schemes Ordinance for those employees in Hong Kong who are eligible to participate.

Contributions are made based on a percentage of the employees’ basic salaries. The assets of the above schemes are held separately from those of the Group in independently administered funds. The Group’s employer contributions vest fully with the employees when contributed into these schemes.

The Company operates a share option scheme for the purpose of providing incentives and rewards to eligible persons.

Events Occurring after the Reporting Period

Save as disclosed in the Company’s positive profit alert announcement dated 13 July 2022, there was no other important event or transaction affecting the Group and which is required to be disclosed by the Company to its shareholders from 1 July 2022 up to the date of this report.

Corporate Governance Code

The Company has applied the principles and complied with the applicable code provisions, and also complied with certain recommended best practices, of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the Period.

Interim Report 2022

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 have 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.

Directors’ and Chief Executive’s Interests in Shares and Underlying Shares

As at 30 June 2022, the interests and short positions of the directors and the chief executive of the Company in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the “ SFO ”)) which are required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they are deemed or taken to have under such provisions of the SFO), or which are required pursuant to section 352 of the SFO to be entered in the register referred to therein, or which are required pursuant to the Model Code to be notified to the Company and the Stock Exchange are as follows:

Long positions in shares and underlying shares of the Company

Name of director	Nature of interest	Number of ordinary shares of HK$0.05 each held	Number of underlying shares pursuant to share options	Percentage of the total issued share capital of the Company
Mr. Chan Kin	Corporate	786,558,488 *	–	10.01
(“Mr. Chan”)

The figure represents an attributable interest of Mr. Chan through his interest in ASM Holdings. Mr. Chan is a significant shareholder of ASM Holdings.

Long positions in shares and underlying shares of associated corporations of the Company

Name of director	Name of associated corporation	Shares/ equity derivatives	Number of shares/ equity derivatives held	Nature of interest	Percentage of the total issued share capital of the associated corporation
Mr. Gao Pei Ji	CITIC Limited	Ordinary shares	20,000	Directly beneficially owned	–

35 CITIC Resources Holdings Limited

Save as disclosed herein, and in the section headed “Substantial Shareholders and Other Persons’ Interests in Shares and Underlying Shares” on page 36, so far as is known to the directors, as at 30 June 2022, (i) none of the directors or the chief executive of the Company had an interest or a short position in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which are required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they are deemed or taken to have under such provisions of the SFO), or which are required pursuant to section 352 of the SFO to be entered in the register referred to therein, or which are required pursuant to the Model Code to be notified to the Company and the Stock Exchange; and (ii) none of the directors was a director or employee of a company which had interest or a short position in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO..

Share Option Scheme

To enable the Company to continue to grant share options as an incentive or reward to eligible persons, a new share option scheme was adopted by the Company on 27 June 2014 (the “ Share Option Scheme ”). Up to the date of this report, no share option has been granted under the Share Option Scheme.

Substantial Shareholders’ and Other Persons’ Interests in Shares and

Underlying Shares

As at 30 June 2022, the interests and short positions of the substantial shareholders and other persons in the shares or underlying shares of the Company, as recorded in the register required to be kept under section 336 of the SFO, were as follows:

==> picture [483 x 73] intentionally omitted <==

----- Start of picture text -----

Number of
ordinary shares of Percentage of
HK$0.05 each the total issued
Nature of held as share capital of
Name of shareholder interest long positions the Company
----- End of picture text -----

中國中信集團有限公司(CITIC Group Corporation)	Corporate	4,675,605,697 (1)	59.50
CITIC Limited	Corporate	4,675,605,697 (2)	59.50
CITIC Corporation Limited	Corporate	4,675,605,697 (3)	59.50
CITIC Projects Management (HK) Limited	Corporate	3,895,083,904 (4)	49.57
Keentech Group Limited	Corporate	3,895,083,904 (5)	49.57
CITIC Australia Pty Limited	Corporate	750,413,793 (6)	9.55
Argyle Street Management Holdings Limited	Corporate	786,558,488 (7)	10.01
Argyle Street Management Limited	Corporate	786,558,488 (8)	10.01
ASM Connaught House General Partner Limited	Corporate	786,558,488 (9)	10.01
ASM Connaught House General Partner II Limited	Corporate	786,558,488 (10)	10.01
ASM Connaught House Fund LP	Corporate	786,558,488 (11)	10.01
ASM Connaught House Fund II LP	Corporate	786,558,488 (12)	10.01
ASM Connaught House (Master) Fund II LP	Corporate	786,558,488 (13)	10.01
Sea Cove Limited	Corporate	786,558,488 (14)	10.01
TIHT Investment Holdings III Pte. Ltd.	Corporate	786,558,488 (15)	10.01

Interim Report 2022

Notes:

(1) The figure represents an attributable interest of 中國中信集團有限公司 (CITIC Group Corporation) (“ CITIC Group through its interest in CITIC Limited. CITIC Group is a company established in China.
(2) The figure represents an attributable interest of CITIC Limited through its interest in CITIC Corporation Limited (“ CITIC Corporation ”). CITIC Limited, a company incorporated in Hong Kong and listed on the Main Board of the Stock Exchange (Stock Code: 267), is owned as to 32.53% by CITIC Polaris Limited (“ CITIC Polaris ”) and 25.60% by CITIC Glory Limited (“ CITIC Glory ”). CITIC Polaris and CITIC Glory, companies incorporated in the BVI, are direct whollyowned subsidiaries of CITIC Group.
(3) The figure represents an attributable interest of CITIC Corporation through its interest in CITIC Projects Management (HK) Limited (“ CITIC Projects ”), CITIC Australia Pty Limited (“ CA ”) and Fortune Class Investments Limited (“ Fortune Class ”). Fortune Class holds 30,108,000 shares representing 0.38% of the total issued share capital of the Company. CITIC Corporation, a company established in China, is a direct wholly-owned subsidiary of CITIC Limited. Fortune Class, a company incorporated in the BVI, is an indirect wholly-owned subsidiary of CITIC Corporation.
(4) The figure represents an attributable interest of CITIC Projects through its interest in Keentech Group Limited (“ Keentech ”). CITIC Projects, a company incorporated in the BVI, is a direct wholly-owned subsidiary of CITIC Corporation.
(5) Keentech, a company incorporated in the BVI, is a direct wholly-owned subsidiary of CITIC Projects.
(6) CA, a company incorporated in Australia, is a direct wholly-owned subsidiary of CITIC Corporation.
(7) The figure represents an attributable interest of ASM Holdings through its interest in ASM Limited, ASM Connaught House General Partner Limited (“ ASM General Partner ”) and ASM Connaught House General Partner II Limited (“ ASM General Partner II ”). ASM Holdings is a company incorporated in the BVI.
(8) The figure represents an attributable interest of ASM Limited through its control of, by virtue of its position as investment manager of, ASM Connaught House Fund LP (“ ASM Fund LP ”), ASM Connaught House Fund II LP (“ ASM Fund II ”) and ASM Connaught House (Master) Fund II LP (“ ASM (Master) Fund II ”). ASM Limited, a company incorporated in the BVI, is a direct wholly-owned subsidiary of ASM Holdings.
(9) The figure represents an attributable interest of ASM General Partner through its role as general partner of ASM Fund LP. ASM General Partner, a company incorporated in the Cayman Islands, is a direct wholly-owned subsidiary of ASM Holdings.
(10) The figure represents an attributable interest of ASM General Partner II through its role as general partner in ASM Fund II and ASM (Master) Fund II.
(11) The figure represents an attributable interest of ASM Fund LP through its interest in Albany Road Limited (“ Albany ”). Albany, a company incorporated in the BVI, is a direct wholly-owned subsidiary of ASM Fund LP.
(12) The figure represents an attributable interest of ASM Fund II through its interest in ASM (Master) Fund II.
(13) The figure represents an attributable interest of ASM (Master) Fund II through its interest in Caroline Hill Limited (“ Caroline ”). Caroline, a company incorporated in the BVI, is a direct wholly-owned subsidiary of ASM (Master) Fund II.
(14) The figure represents an attributable interest of Sea Cove Limited (“ Sea Cove ”) through its interest in TIHT Investment Holdings III Pte. Ltd. (“ TIHT ”). Sea Cove, a company incorporated in the BVI, is owned as to more than one-third of the total issued share capital by Caroline and more than one-third of the total issued share capital by Albany.
(15) TIHT, a company incorporated in Singapore, is a direct wholly-owned subsidiary of Sea Cove.

Save as disclosed herein and in the section headed “Directors’ and Chief Executive’s Interests in Shares and Underlying Shares” (on page 35) and so far as is known to the directors, as at 30 June 2022, no person had an interest or a short position in the shares or underlying shares of the Company required to be recorded in the register to be kept under section 336 of the SFO.

CITIC Resources Holdings Limited

Update on Directors’ Information Pursuant to Rule 13.51B(1) of the Listing Rules

In accordance with Rule 13.51B(1) of the Listing Rules, subsequent to the date of the 2021 annual report of the Company and as at the date of this report, the change in information of Directors of the Company is set out below:

Name of Director

Details of Change

Mr. Fan Ren Da Anthony Appointed as a non-executive director of Hilong Holding Limited (stock code: 1623) with effect from 25 July 2022

Save for the information disclosed above, there is no other information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules.

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 this interim report with senior management of the Company.

On behalf of the Board Sun Yufeng Chairman

Hong Kong, 22 July 2022

Interim Report 2022

Glossary of Terms

In this Interim report, unless the context otherwise requires, the following expressions have the following meanings:

A$	Australian dollar, the lawful currency of Australia
AWC	Alumina Limited
ASM Holdings	Argyle Street Management Holdings Limited
ASM Limited	Argyle Street Management Limited
ASX	Australian Securities Exchange
Board	Board of directors
BVI	British Virgin Islands
CACT	CA Commodity Trading Pty Ltd
CCEL	CITIC Canada Energy Limited
CITIC Haiyue	CITIC Haiyue Energy Limited
CITIC Seram	CITIC Seram Energy Limited
Claims	Three claims in the Shandong High People’s Court in China
CMJV	Coppabella and Moorvale coal mines joint venture
CNPC	China National Petroleum Corporation
Company	CITIC Resources Holdings Limited
COVID-19	Coronavirus disease 2019
Decheng	Qingdao Decheng minerals Co., Ltd. (青島德誠礦業有限公司)
EHA2	Hedging agreement with several subsidiaries of AGL Energy Limited, an
	integrated renewable energy company listed on the ASX (Stock Code:
	AGL), in relation to the supply of electricity to the PAS from 1 August
	2017 to 31 July 2021
EHA3	Hedging agreement with the independent electricity suppliers, AGL
	Energy Limited, Alinta Energy Pty Limited and Origin Energy Limited, a
	company listed on ASX (Stock Code: ORG)
Financial Statements	Interim condensed consolidated financial statements
Group	CITIC Resources Holdings Limited and its subsidiaries
Hainan-Yuedong Block	Hainan-Yuedong Block in the Bohai Bay Basin in Liaoning Province,
	China

39 CITIC Resources Holdings Limited

HK$	Hong Kong dollars, the lawful currency of Hong Kong
HKAS	Hong Kong Accounting Standard
HKFRSs	Hong Kong Financial Reporting Standards
HKICPA	Hong Kong Institute of Certified Public Accountants
Karazhanbas oilfield	Karazhanbas Oil and Gas Field in Mangistau Oblast, Kazakhstan
KBM	JSC Karazhanbasmunai
Listing Rules	Rules Governing the Listing of Securities on the Stock Exchange
LIBOR	London interbank offered rates
MEA	PT Maluku Energi Abadi
MET	Mineral extraction tax
Model Code	Model Code for Securities Transactions by Directors of Listed Issuers
	contained in Appendix 10 to the Listing Rules
PAS	Portland Aluminium Smelter
Period or 1H 2022	six months ended 30 June 2022
PRMS	Petroleum Resources Management System
PSC	Production sharing contract which grants the right to explore, develop
	and produce petroleum from the Seram Block
RMB	Renminbi, the lawful currency of China
Seram Block	Seram Island Non-Bula Block, Indonesia
SFO	the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong
	Kong)
Stock Exchange	The Stock Exchange of Hong Kong Limited
Tincy Group	Tincy Group Energy Resources Limited
US$	United States dollars, the lawful currency of the United States of
	America
Weihai	Weihai City Commercial Bank Co., Ltd (威海市商業銀行股份有限公司)
Yuedong oilfield	Principal oilfield within Hainan-Yuedong Block, China
1H 2021	six months ended 30 June 2021

Note: The English names of the Chinese entities mentioned hereinabove are translated from their Chinese names. If there are any inconsistencies, the Chinese names shall prevail.

Interim Report 2022

Investor Relations Contact

Suites 6701-02 & 08B 67/F, International Commerce Centre 1 Austin Road West, Kowloon, Hong Kong Attention : Investor Relations Department Telephone : (852) 2899 8200 Facsimile : (852) 2815 9723 E-mail : [email protected]

投資者關係聯絡

香港九龍柯士甸道西 1 號環球貿易廣場 67 樓 6701-02 及 08B 室聯絡 : 投資者關係部電話 : (852) 2899 8200 傳真 : (852) 2815 9723 電郵 : [email protected]

http://resources.citic

==> picture [69 x 69] intentionally omitted <==

==> picture [489 x 808] intentionally omitted <==

AI assistant

Shanghai Able Digital Science&Tech Co., Ltd. — Interim / Quarterly Report 2022

50757_rns_2022-08-18_65703108-f5a8-4a1d-ba95-7dc8c2ab0454.pdf

OIL

COAL

IMPORT AND EXPORT OF COMMODITIES

ALUMINIUM

Contents 目錄

Corporate Information 公司資料 Financial Results 財務業績

Other Information 其他資料

Corporate Information

Board of Directors

Executive Directors

Company Secretary

Registered Office

Non-executive Director

Independent Non-executive Directors

Audit Committee

Remuneration Committee

Nomination Committee

Head Office and Principal Place of Business

Hong Kong Branch Share Registrar and Transfer Office

Auditor

Principal Bankers

Risk Management Committee

Financial Results

Condensed Consolidated Income Statement

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Notes to the Condensed Consolidated Financial Statements

1. Basis of Preparation

2. Changes in Accounting Policies and Disclosures

3. Issued but not yet Effective Hong Kong Financial Reporting Standards

4. Operating Segment Information

4. Operating Segment Information (continued)

4. Operating Segment Information (continued)

5. Revenue, Other Income, Gains and Losses, Net

(a) Disaggregated revenue information

6. Finance Costs

7. Profit Before Tax

8. Income Tax Expense

8. Income Tax Expense (continued)

9. Earnings Per Share Attributable to Ordinary Shareholders of the Company

10. Dividend

11. Property, Plant and Equipment

12. Prepayments, Deposits and Other Receivables

13. Inventories

14. Trade Receivables

15. Derivative Financial Instruments

16. Cash and Deposits

17. Accounts Payable

18. Bank and Other Borrowings

19. Share Capital

20. Litigation and Contingent Liabilities

21. Commitments

22. Related Party Transactions and Connected Transactions

22. Related Party Transactions and Connected Transactions (continued)

23. Fair Value and Fair Value Hierarchy of Financial Instruments

23. Fair Value and Fair Value Hierarchy of Financial Instruments (continued)

Fair value hierarchy

Assets measured at fair value:

Liabilities measured at fair value:

Business Review and Outlook

Review

Crude oil business

Non-oil businesses

Metals

Coal

Import and export of commodities

Outlook

Financial Review

Group’s financial results:

Operating results and ratios

Financial position and ratios

Aluminium smelting

Coal

Import of commodities

Shanghai Able Digital Science&Tech Co., Ltd. Interim / Quarterly Report 2022