CITIC Limited Half-Year Report 2020

Profit attributable to ordinary shareholders 1H 2020 25,515 21,948 706 2,093 380 703 2,809 3,514 3,528 3,540 2,355 1,093 1H 2019 Real estate Others Financial services Resources and energy Manufacturing Engineering contracting HK$ million Financial services: In the first half of 2020, the financial services business recorded a profit attributable to ordinary shareholders of HK$21,948 million, representing a year-on-year decrease of HK$3,567 million, or 14%. It included a decrease of 4.2%, which result from the effect of currency translation arising from the depreciation of the RMB exchange rate. CITIC Bank’s business continued to expand steadily, with loan scale increasing by 5.4% at the end of the first half of the year as compared with the beginning of the year. The increase was mainly due to the investment in manufacturing, inclusive finance and private enterprises, which contribute to steady growth in its revenue. However, due to the credit risk exposure in the market, the balance of non-performing loans increased by 17%, and the non-performing loan ratio increased by 0.18 percentage points to 1.83%. In order to guard against risk and lay a solid foundation for its continuing development, CITIC Bank strengthened its credit impairment provisions, with a year-on-year increase of 39% in the first half of the year, and a rise of 175.72% in its provision coverage ratio. As a result, profit attributable to the bank’s shareholders decreased by 9.8% year-on-year to RMB25,541 million. CITIC Trust continued to optimise its business structure, by increasing its scale of actively managed trust assets to 50%. However, due to the increased provisions, profit decreased by 35% year-on-year to RMB1,071 million. The improvement in the capital market contributed to year-on-year growth in CITIC Securities’ businesses, including securities investment, brokerage, investment banking, asset management. Profit rose by 38% year-on-year to RMB8,926 million, helping it to maintain its leading position in the industry. With its differentiated competitive advantages, CITIC-Prudential Life has quickly built a successful online business model, with growth achieved in premium income, the scale of assets under management, and return on investment; profit in this business rose by 67% year-on-year to RMB777 million. Resources and energy: In the first half of 2020, the resources and energy business recorded a profit attributable to ordinary shareholders of HK$706 million, representing a year-on-year decrease of HK$1,387 million, or 66%. 10 Half-Year Report 2020 CITIC Limited