CITIC Limited Half-Year Report 2020

Overview Profit attributable to ordinary shareholders During the first half of 2020, the Group achieved a profit attributable to ordinary shareholders of HK$27,014 million, representing a year-on-year decrease of HK$6,504 million, or 19%, which included a decrease of 3.1% resulting from the effect of currency translation arising from the depreciation of the RMB exchange rate. The financial services business recorded a profit attributable to ordinary shareholders of HK$21,948 million, representing a year-on-year decrease of 14%, including a decrease of 4.2% that was the effect of the same currency translation mentioned above. Our banking and trust businesses showed a year-on-year decrease in profit due to higher provision to guard against increasing credit risk in the market, affected by the economic downturn and the COVID-19 pandemic. Benefiting from the upward trend in the capital market, the performance of our securities business improved significantly. Our insurance business continued to maintain rapid profit growth. In the non-financial businesses, our resources and energy business recorded a profit attributable to ordinary shareholders of HK$706 million, representing a year-on-year decrease of 66%. This was mainly due to the decline in both the volumes and prices of crude oil and other commodities and volume of coal, driven by the economic downturn and shrinking market demand, all of which resulted in a decrease in the profit of CITIC Resources and CITIC Pacific Energy. The manufacturing business recorded a profit attributable to ordinary shareholders of HK$2,809 million, representing a year-on-year decrease of 20%. This was mainly due to the diluted equity impact of CITIC Dicastal 1 and CITIC Pacific Special Steel, as well as a decrease in orders in CITIC Dicastal’s aluminium wheels business following the shutdown of downstream factories. The engineering contracting business recorded a profit attributable to ordinary shareholders of HK$380 million, representing a year-on-year decrease of 46%, which was mainly due to the suspension of work and production during the pandemic. This resulted in a delay in the progress of the project. In the real estate business, a profit attributable to ordinary shareholders of HK$3,528 million was recorded, which was basically the same as last year. In June of this year, the Company completed the transfer of 22% of McDonald’s equity, realising a one-off after-tax profit of HK$2,362 million and received sales proceed of HK$4,157 million. However, the performance of subsidiaries such as Dah Chong Hong, CITIC Press, and CITIC Environment declined. 43,146 43,902 50,239 27,014 53,903 33,518 Profit attributable to ordinary shareholders First half year of 2019 First half year of 2020 2016 (Restated) 2017 2018 2019 HK$ million 1 In 2019, CITIC Dicastal introduced strategic investors and was no longer consolidated in the financial statements of the group by the shareholding ratio of CITIC shares decreased to 42.11%. Until now, the change of property right registration for State assets of CITIC Dicastal have not been completed. The regulatory authorities have put forward some specific requirements, and the group will continue to implement them as required. 8 Half-Year Report 2020 CITIC Limited Financial Review