CITIC Limited Half-Year Report 2020

6 Half-Year Report 2020 CITIC Limited Profit contribution from the property business was HK$3.5 billion, matching the result in the same period last year. Profit included our 10% holding in China Overseas Land and Investment, rental income from mainland China and Hong Kong investment properties, and the booking of residential units sold and delivered in the Kadooria and Discovery Bay developments in Hong Kong. Additionally, there was a revaluation gain from an increased shareholding in a property in Shanghai. PREPARING FOR A NEW NORMAL The last six months were a singularly challenging period, and we continue to contend with a great deal of uncertainty. Whole business sectors have been upended and, in some, the impetus for structural change is accelerating. While our grounding in fundamental industries shelters us from some of the most radical forces of disruption, we must prepare for a period of sustained turbulence and lasting transformation. It is therefore essential that we focus on enhancing operational discipline and mitigating risks as we strengthen our ability to quickly act on emerging opportunities. As such, we are redoubling our efforts to economise our operations and drive stringent cost controls across the entire organisation. I am also leading an initiative to elevate our risk assessment and management practices at every level of the company. Our objective is to make our businesses leaner and more agile, capable of thriving in even the toughest business environment. At the same time, we will continue to monitor the competitive landscape, assessing ways to build the business and enhance our position across our many supply chains. Now, more than ever, we need to unlock the unique advantages of the CITIC platform and drive greater synergy among our businesses. Volatility can create opportunities; we must be ready for them. As global trade remains constricted in the face of the ongoing spread of the novel coronavirus, the path to recovery is likely to be long and arduous. We conduct business globally, and our full-year results will reflect this reality. However, we are cautiously optimistic that we will be well-served by our operations in China, since the majority of our business is driven by the strength of the domestic economy. As China recovers, so will we. We are especially encouraged by the country’s 3.2% GDP growth in the second quarter, as well as improvements in investment, consumption and industrial output, following successful efforts to contain COVID-19. This year has been a test of the true mettle of our people and organisation. I am proud of our efforts and grateful for everyone’s dedication. Our businesses remain sustainably positioned, and we are as focused as ever on delivering long-term value for you. Thank you for your continued trust and support. Zhu Hexin Chairman Beijing, 28 August 2020