CITIC Limited Half-Year Report 2019

sustain but further its leading position in the segment. Our expanded resources are also promoting synergies and economies of scale in special steel. As a conglomerate, CITIC Limited manages a collection of businesses. We are keenly aware that the market pegs our valuation to their estimated values. Our goal is to achieve a value greater than the sum of our parts. Beyond our efforts to deepen our operating resilience and make shrewd investments, it is equally important that we continue to identify, nurture, manage and ultimately realise the value of our businesses by introducing the right ones to the capital markets or bringing in strategic partners during critical growth periods. In terms of unlocking value through the capital markets, the restructuring of our steel business under Shenzhen-listed Daye Special Steel has received all relevant approvals and is expected to be completed before the year end. In early July, we also successfully listed CITIC Press Corporation on the ChiNext board of the Shenzhen Stock Exchange. Value-enhancing exercises such as these not only enable our businesses to gain greater access to the capital necessary for pursuing future growth opportunities. They will also raise the standards of corporate governance for our operating companies as they evolve their disclosure and transparency practices. We have had many similar experiences in the past. Many companies that we have listed have increased in value several times from their initial market valuation and can now raise capital more cheaply. This is as valuable to the operating companies as it is to CITIC Limited. We also have many unlisted, wholly owned businesses with strong market positioning and long-term outlooks. We will be supporting their development by bringing in strategic partners who can uniquely contribute expertise, knowledge and networks. In doing so, we will also be realising the value of our investments in these businesses. CITIC Dicastal, as we just announced, will be doing exactly this. In Conclusion I am sure most of you have been watching the current situation in Hong Kong. I have been deeply concerned and saddened by the disruption and instability these events have caused and their impact on the city that we call home. Respect for the rule of law and adherence to the fundamental principle of ‘one country, two systems’ are key to Hong Kong’s long-term prosperity. CITIC, as always, is fully committed to the development and stability of this vibrant city and world-class financial centre. As we look ahead, we will continue to navigate an increasingly complex trading environment. I am proud of and grateful for all the people who have stayed focused on the work at hand. Our businesses remain solid, sustainably positioned and oriented for long-term success. Chang Zhenming Chairman Hong Kong, 29 August 2019 6 Half-Year Report 2019 CITIC Limited