CITIC Limited Half-Year Report 2019

Dear Shareholders, For the first six months of 2019, CITIC Limited achieved a profit attributable to ordinary shareholders of HK$33.5 billion, 9% more than the same period in 2018. This increase was mainly driven by the solid performance of CITIC Bank, a first time profit at Sino Iron and a substantial rise in profit in the special steel business. At the end of June, we had HK$26.7 billion in cash and available facilities. The board recommends an interim dividend payment of HK$0.18 per share, which is HK$0.03 more than the same period last year. Business Performance The financial services segment recorded HK$25.5 billion in profit, 5% more than the corresponding period in 2018. The increase was primarily driven by the contribution from CITIC Bank. Benefiting from the easing of credit in the first half of the year, the bank’s net interest income rose 15% year-on-year as assets grew and net interest margin widened. Non-interest income grew by 14% and now makes up 38.7% of total revenue. CITIC Bank continued to focus on managing asset quality, with a lower NPL ratio of 1.72% at the end of the review period. CITIC Trust’s profit increased 35%, driven by growth in its proprietary business. Premiums at CITIC-Prudential Life grew substantially over the period; however, profit was flat owing to a provision made on an investment. CITIC Securities outperformed its peers and recorded a 16% higher profit than the first half of last year. In the non-financial segment, the manufacturing business achieved a profit of HK$3.5 billion, a 46% rise over the same period in 2018, due to a substantial increase in profit at our special steel and heavy industry businesses. CITIC Pacific Special Steel saw a rise of 61% in profit, thanks to the strong performance of its four plants. This was particularly true of Qingdao Special Steel, which doubled its profit following comprehensive improvements to its operations — including raw material procurement, the product mix, quality and cost controls — since the acquisition of the plant in late 2017. CITIC Heavy Industries saw a substantial profit growth of 50%, supported by improvements in the heavy 4 Half-Year Report 2019 CITIC Limited Chairman’s Letter to Shareholders