CITIC Limited Half-Year Report 2020

Others: The profit attributable to ordinary shareholders by other businesses in the first half of 2020 amounted to HK$2,355 million, including the gain of HK$2,362 million on the disposal of McDonald’s 22% equity. Dah Chong Hong’s automobile sales and consumer goods distribution businesses were greatly affected by the pandemic, and turned from profit to loss; CITIC Press’s profit fell 22% year on year to RMB102 million, but, got its number one ranking in the book market by migrating to an online sales model. CITIC Environment’s profit decreased due to new loan interest on the delisting of CITIC Envirotech Ltd, while CITIC Telecom International’s earnings remained stable. Group Financial Results Revenue In the first half of 2020, CITIC Limited recorded revenue of HK$255,802 million, representing a year-on-year decrease of HK$21,374 million, or 7.7%. This included a decrease of 2.4% from the effect of currency translation related to the depreciation of the RMB exchange rate. The financial services business recorded revenue of HK$116,984 million, representing a year-on-year increase of HK$5,081 million, or 4.5%. It included a decrease of 5.4% due to the effect of currency translation as stated above. The revenue of CITIC Bank increased by 9.7%, and its net interest income increased by 5.6% driven by asset scale expansion. Net interest margin decreased by 12 basis points to 1.99% due to the downturn in the market interest rate. The increase in income from securities investment led to a rise in non-interest income of 18%, with the proportion of non-interest income increasing by 2.5 percentage points to 36.5%. The resources and energy business recorded revenue of HK$46,340 million, representing a year-on-year decrease of HK$1,518 million, or 3.2%. Revenue of CITIC Resources and CITIC Pacific Energy both recorded a year-on-year decrease of 32% and 26% respectively, due to declines in the volumes and prices of their respective crude oil and power generation businesses. Revenue of CITIC Metal Group recorded a year-on-year increase of 2.3%. This was made possible by optimising sales channels and strategies, leading to growth in the copper, aluminium and steel trading businesses, which offset the declines in the iron ore and niobium products businesses. The manufacturing business recorded revenue of HK$42,548 million, representing a year-on-year decrease of HK$17,059 million, or 29%. Excluding the effect of CITIC Dicastal, the decrease would be 5.0%. By adjusting product variety, CITIC Pacific Special Steel achieved an increase in the sales of special steel, especially steel used for energy, to against the market downtrend; its revenue, however, decreased by 1.1% due to a decline in steel prices. The engineering contracting business recorded revenue of HK$7,736 million, representing a year-on-year decrease of HK$171 million, or 2.2%. CITIC Construction recorded a year-on-year increase in revenue of 31%, which was mainly derived from the power plant project in Iraq; CITIC Engineering recorded a year-on-year decrease in revenue of 24%. 12 Half-Year Report 2020 CITIC Limited