CITIC Limited Half-Year Report 2019

60 CITIC Limited Half-Year Report 2019 For the six months ended 30 June 2019 14 Segment reporting The Group has presented six reportable operating segments which are financial services, resources and energy, manufacturing, engineering contracting, real estate and others. Reportable segments are identified based on operating segments which are determined based on the structure of the Group’s internal organisation, management requirements and internal reporting system. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose financial performance is regularly reviewed by the board of directors to make decisions about resource to be allocated to the segment and assess its performance, and for which financial information regarding financial position, financial performance and cash flows is available. The details of these six reportable segments are as follows: – Financial services: this segment includes banking, trust, asset management, securities and insurance services. – Resources and energy: the major businesses in this segment include exploration, processing and trading of resources and energy products, including crude oil, coal and iron ore. – Manufacturing: this segment includes manufacturing of special steels, heavy machineries, aluminium wheels and other products. – Engineering contracting: this segment provides contracting and design services for infrastructure, real estate and industrial projects, etc. – Real estate: this segment includes development, sale and holding of properties. – Others: others include various businesses including investment and operation of infrastructures, telecommunication services, motor and food and consumer products business, commercial aviation services, publication services and others. (a) Segment results, assets and liabilities For the purposes of assessing segment performance and allocating resources among segments, the board of directors monitors the results, assets and liabilities, revenue and expenses attributable to each reportable segment on the following bases: Segment assets are those assets that are attributable to a segment, and segment liabilities are those liabilities that are attributable to a segment. Revenue and expenses are allocated to the reportable segments with reference to revenue generated by those segments and the expenses incurred by those segments or which otherwise arise from the depreciation of assets attributable to those segments. The measure used for reporting segment profit is “profit for the period”. To arrive at segment results, the Group’s profit is further adjusted for items not specifically attributed to individual segments, such as share of results of associates and joint ventures. Inter-segment pricing is based on similar terms as those available to other external parties. Notes to the Consolidated Financial Statements