CITIC Limited Half-Year Report 2019

Financial Review 8 Half-Year Report 2019 CITIC Limited Overview Net profit attributable to ordinary shareholders During the first half of 2019, the Group achieved net profit attributable to ordinary shareholders of HK$33,518 million, representing a year-on-year increase of HK$2,850 million, or 9.3%. Excluding the effect of currency translation due to the depreciation of the average RMB exchange rate for the current period, the increase would have been 16%. The financial services segment recorded net profit attributable to ordinary shareholders of HK$25,515 million, an increase of 5.2%. Excluding the currency translation effect, the corresponding increase in net profit would have been 12%. Our banking business showed rapid growth with a year-on-year increase in revenue and net profit attributable to the bank’s shareholders of 15% and 10%, respectively. CITIC Trust and CITIC Securities continued to maintain a leading position in the industry, with a year-on-year increase in net profit of 35% and 16%, respectively. Our insurance business maintained a steady profit. In non-financial segments, our resources and energy business recorded a net profit attributable to ordinary shareholders of HK$2,093 million, an increase of 64%. This was mainly due to the turn from loss to profit of the Sino Iron Project, driven by higher iron ore prices and on-going cost control measures. The manufacturing business recorded net profit attributable to ordinary shareholders of HK$3,514 million, representing a corresponding increase of 46%, while the special steel business achieved a year-on-year increase of 61% in net profit by continuing to develop production capacity and reducing costs to further increase sales volume and gross profit. The aluminium wheels business, on the other hand, recorded a year-on-year decrease of 16% in net profit due to the global sales decline in vehicles and additional tariffs imposed by the United States. The engineering contracting business recorded a net profit attributable to ordinary shareholders of HK$703 million, which was basically equal to that of the corresponding period of last year. In the real estate business, a net profit attributable to ordinary shareholders of HK$3,540 million was recorded, representing a year-on-year decrease of 25%, owing to the periodic settlement of real estate projects. Other industries registered a net profit attributable to ordinary shareholders of HK$1,093 million, representing a year-on-year decrease of 56%, which was due to the gain on the disposal of the toll roads business of approximately HK$1,300 million in the corresponding period last year. 41,812 43,146 43,902 33,518 50,239 30,668 of 2019 First half year of 2018 First half year 2015 2016 (Restated) 2017 2018 Net pro t attributable to ordinary shareholders HK$ million