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

Jul 22, 2022

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Incorporated in Bermuda with limited liability)

(Stock Code: 1205)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022

The board of directors (the “ Board ”) of CITIC Resources Holdings Limited (the “ Company ”) announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the “ Group ”) for the six months ended 30 June 2022 (the “ Period ”).

FINANCIAL HIGHLIGHTS

Six months ended 30 June	2022	2021	Change
Unaudited	HK$ million	HK$ million
Revenue	3,228.4	1,703.9	89.5%
EBITDA1	1,654.5	754.9	119.2%
Adjusted EBITDA2	1,947.3	1,021.6	90.6%
Profit attributable to shareholders	893.3	427.4	109.0%

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)

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The global economy and commodity markets are recovering from the historic collapse in demand caused by the Coronavirus disease 2019 (“ 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 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.

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FINANCIAL RESULTS

CONDENSED CONSOLIDATED INCOME STATEMENT

Six months ended 30 June Unaudited

Notes REVENUE 3 Cost of sales Gross profit Other income, gains and losses, net 4 General and administrative expenses Other expenses, net Finance costs 5 Share of profit of: An associate A joint venture PROFIT BEFORE TAX 6 Income tax expense 7 PROFIT FOR THE PERIOD ATTRIBUTABLE TO: Shareholders of the Company Non-controlling interests EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY 8 Basic Diluted	2022 HK$’000 3,228,390 (2,167,863) 1,060,527 102,486 (132,932) (4,712) (55,122) 102,445 286,722 1,359,414 (430,942) 928,472 893,288 35,184 928,472 HK cents 11.37 11.37	2021 HK$’000 1,703,857 (1,340,714) 363,143 52,547 (122,749) (10,152) (43,125) 77,255 172,778 489,697 (42,160) 447,537 427,412 20,125 447,537 HK cents 5.44 5.44

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 30 June Unaudited PROFIT FOR THE PERIOD 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 Income tax effect Exchange differences on translation of foreign operations Share of other comprehensive (loss)/income of a joint venture Net other comprehensive (loss)/income that may be reclassified to profit or loss in subsequent periods OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD, NET OF TAX TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: Shareholders of the Company Non-controlling interests	2022 HK$’000 928,472 13,060 – 13,060 (151,155) (5,994) (144,089) (144,089) 784,383 762,512 21,871 784,383	2021 HK$’000 447,537 (15,953) 4,787 (11,166) 18,280 1,694 8,808 8,808 456,345 434,131 22,214 456,345

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Goodwill Other assets Investment in an associate Investment in a joint venture Prepayments, deposits and other receivables Time deposit Deferred tax assets Total non-current assets CURRENT ASSETS Inventories Trade receivables 10 Prepayments, deposits and other receivables Derivative financial instruments Cash and deposits Total current assets CURRENT LIABILITIES Accounts payable 11 Tax payable Accrued liabilities and other payables Dividend payable Derivative financial instruments Bank and other borrowings Lease liabilities Provisions for long-term employee benefits Provisions Total current liabilities NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES	30 June 2022 Unaudited HK$’000 3,569,056 66,334 24,682 224,111 2,934,634 2,354,493 24,875 91,647 – 9,289,832 521,151 588,186 254,029 114,978 2,486,131 3,964,475 110,998 54,969 889,762 353,633 – 374,989 20,432 41,619 4,948 1,851,350 2,113,125 11,402,957	31 December 2021 Audited HK$’000 3,838,772 83,123 24,682 224,676 2,893,101 2,073,765 38,594 88,754 187,832 9,453,299 431,595 704,889 167,372 21,012 1,925,573 3,250,441 135,803 54,113 919,545 – 643 240,669 26,463 46,667 1,163 1,425,066 1,825,375 11,278,674

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

TOTAL ASSETS LESS CURRENT LIABILITIES NON-CURRENT LIABILITIES Bank and other borrowings Lease liabilities Deferred tax liabilities Provisions for long-term employee benefits Provisions Total non-current liabilities NET ASSETS EQUITY Equity attributable to shareholders of the Company Issued capital Reserves Non-controlling interests TOTAL EQUITY	30 June 2022 Unaudited HK$’000 11,402,957 2,954,640 31,871 402,651 17,593 642,093 4,048,848 7,354,109 392,886 6,960,445 7,353,331 778 7,354,109	31 December 2021 Audited HK$’000 11,278,674 3,418,480 41,102 256,016 19,919 619,833 4,355,350 6,923,324 392,886 6,551,531 6,944,417 (21,093) 6,923,324

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NOTES

1. BASIS OF PREPARATION

These unaudited interim condensed consolidated financial statements (“ Financial Statements ”) have been prepared in accordance with Hong Kong Accounting Standard (“ HKAS ”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (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	Annual Improvements to HKFRSs 2018-2020
HKFRSs

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.

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3. 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.

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.

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3. OPERATING SEGMENT INFORMATION (Continued)

Six months ended 30 June Unaudited HK$’000

2022 Segment revenue: Sales to external customers Other income Segment results Reconciliation : Interest income and unallocated gains Unallocated expenses Unallocated finance costs Share of profit of: An associate A joint venture Profit before tax 2021 Segment revenue: Sales to external customers Other income Segment results Reconciliation : Interest income and unallocated gains Unallocated expenses Unallocated finance costs Share of profit of: An associate A joint venture Profit before tax	Aluminium smelting 736,090 85,658 821,748 228,059 Aluminium smelting 566,661 16,006 582,667 122,061	Coal Import and export of commodities 658,647 877,886 2,742 3,051 661,389 880,937 354,258 19,178 Coal Import and export of commodities 259,383 320,316 — 3,884 259,383 324,200 (25,485) 10,791	Crude oil 955,767 2,828 958,595 523,403 Crude oil 557,497 5,429 562,926 240,309	Total 3,228,390 94,279 3,322,669 1,124,898 8,207 (107,736) (55,122) 102,445 286,722 1,359,414 Total 1,703,857 25,319 1,729,176 347,676 27,228 (92,115) (43,125) 77,255 172,778 489,697

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3. OPERATING SEGMENT INFORMATION (Continued)

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

4. OTHER INCOME, GAINS AND LOSSES, NET

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

Interest income Handling service fees Sale of scrap Reversal of provision for inventories Government subsidies Gain on disposal of items of property, plant and equipment Fair value gain on derivative financial instruments Exchange (losses)/gains, net Others	2022 HK$’000 10,260 2,867 3,029 – – 740 84,843 (6,468) 7,215 102,486	2021 HK$’000 7,094 3,688 2,426 2,070 2,669 60 12,653 11,419 10,468
		52,547

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5. FINANCE COSTS

An analysis of finance costs is as follows:

2022 HK$’000 Interest expense on bank and other borrowings 36,134 Interest expense on lease liabilities 900 Total interest expense on financial liabilities not at fair value through profit or loss 37,034 Other finance charges: Increase in discounted amounts of provisions arising from the passage of time 11,901 Over-provision in prior periods – Others 6,187 55,122 PROFIT BEFORE TAX The Group’s profit before tax is arrived at after charging/(crediting): 2022 HK$’000 Depreciation of property, plant and equipment 223,568 Depreciation of right-of-use assets 15,599 Amortisation of other assets 766 Gain on disposal of items of property, plant and equipment, net (738) Loss on disposal of other assets – Fair value gain on derivative financial instruments (84,843) Exchange losses/(gains), net 6,468

2021 HK$’000 44,456 1,426 45,882 4,467 (8,282) 1,058 43,125 2021 HK$’000 205,411 15,894 793 (59) 124 (12,653) (11,419)

6. PROFIT BEFORE TAX

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7. INCOME TAX EXPENSE

Current – Hong Kong Current – Elsewhere Charge for the period Overprovision in prior periods Deferred Total tax expense for the period	2022 HK$’000 – 161,493 (6) 269,455 430,942	2021 HK$’000 – 175 (19) 42,004 42,160

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.

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.

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8. 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.

9. 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.

10. TRADE RECEIVABLES

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

Within one month One to two months Two to three months Over three months	30 June 2022 Unaudited HK$’000 261,838 145,859 89,301 91,188 588,186	31 December 2021 Audited HK$’000 331,680 216,475 82,314 74,420 704,889

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

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11. ACCOUNTS PAYABLE

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

Within one month One to three months Over three months	30 June 2022 Unaudited HK$’000 109,255 118 1,625 110,998	31 December 2021 Audited HK$’000 135,719 61 23 135,803

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

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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, repeated epidemics in China, the end of production curbs by OPEC and major oil-producing countries, the Kazakh emergency, and frequent occurrence of geopolitical events such as the Russia-Ukraine conflict caused 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% year-on-year. The realized prices of aluminum smelting and coal also increased substantially, driving the overall performance of the Group to improve significantly.

Facing the complexity and uncertainty of external environments, the Group insists on making progress and seeking 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 parent of HK$890,000,000, representing an increase of nearly 1 time yearon-year. As of 30 June 2022, total assets amounted to HK$13,250,000,000, and net assets attributable to the parent 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% yearon-year. In particular, the production from the Karazhanbas oilfield increased by 117,000 barrels year-on-year due to its in-advance deployment of production improvement measures. The Yuedong oilfield production was 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 measures, and its production was decreased by 15,000 barrels year-on-year during the period.

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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 resumed 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 an equity production output of 3,533,000 barrels and achieved net profit attributable to the parent 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 development efforts and enhanced its tax planning, achieving an equity production output of approximately 1,188,000 barrels and net profit attributable to the parent of approximately HK$322,000,000, representing an increase of approximately 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 an equity production output of approximately 84,000 barrels and achieved net profit attributable to the parent of approximately HK$22,000,000, representing an increase of approximately HK$28,000,000 year-on-year.

Non-oil businesses

In the first half of 2022, the Group’s non-oil business achieved net profit attributable to the parent of approximately HK$398,000,000 (representing an increase of approximately HK$230,000,000 year-on-year), 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 epidemic, 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.

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During the period, the sales volume of aluminum smelting at the Portland Aluminium Smelter of the Group was approximately 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 the annual production task will be achieved.

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, but 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 parent 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 year-on-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.

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 parent of HK$10,000,000, representing an increase of 99.5% year-on-year.

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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 project of “cost reduction and efficiency improvement” will continue to be a key focus for 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 main line 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 of node, process, standardization and informatization, and building a refined management system for all employees, all-round, full 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.

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

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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).

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.

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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.

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EMPLOYEES AND REMUNERATION POLICIES

As at 30 June 2022, the Group had 199 full time employees, including management and administrative staff.

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.

DIVIDEND

The Board does not recommend the payment of any interim dividend for the Period. (six months ended 30 June 2021: Nil).

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.

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.

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PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

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

REVIEW OF ACCOUNTS

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

By Order of the Board CITIC Resources Holdings Limited Sun Yufeng Chairman

Hong Kong, 22 July 2022

As at the date hereof, Mr. Sun Yufeng and Mr. Suo Zhengang are executive directors of the Company, Mr. Chan Kin is a non-executive director of the Company, and Mr. Fan Ren Da, Anthony; Mr. Gao Pei Ji and Mr. Look Andrew are independent non-executive directors of the Company.

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