CITIC : Announcement - Unaudited Financial Statements of CITIC Corporation Limited for the nine months ended 30 September 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ANNOUNCEMENT

UNAUDITED FINANCIAL STATEMENTS OF

CITIC CORPORATION LIMITED

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2018

This announcementis made by CITIC Limited (the "Company") pursuant to Rule 13.09(2)(a)of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the laws of Hong Kong).

CITIC Corporation Limited ("CITIC Corporation"), a wholly-owned subsidiary of theCompany, is a company incorporated in the People's Republic of China ("PRC"). AsCITIC Corporation issued medium-term notes and super & short-term commercial paper in the PRC, it is required to announce the financial statements of itself and its subsidiaries prepared in accordance with the PRC Generally Accepted Accounting Principles periodically in accordance with therelevant regulations of the People's Bank of Chinaand the National Association of Financial Market Institutional Investors.

The unaudited financial statements of CITIC Corporation for the nine months ended 30 September 2018 are available on China Bond, China Money and Shanghai Clearing House atwww.chinabond.com.cn, www.chinamoney.com.cn and www.shclearing.com, respectively, and are set out at the end of this announcement.

By Order of the Board

CITIC Limited Chang Zhenming

Chairman

Hong Kong, 30 October 2018

As at the date of this announcement, the executive directors of the Company are Mr Chang Zhenming (Chairman), Mr Wang Jiong, Ms Li Qingping and Mr Pu Jian; the non-executive directors of the Company are Mr Song Kangle, Ms Yan Shuqin, Mr Liu Zhuyu, Mr Peng Yanxiang, Mr Liu Zhongyuan, Mr Yang Xiaoping and Mr Wu Youguang; and the independent non-executive directors of the Company are Mr Francis Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Ms Lee Boo Jin, Mr Paul Chow Man Yiu and Mr Shohei Harada.

Consolidated Balance Sheet

as at 30 Septemer 2018 (Unaudited)

30 September 2018	31 December 2017
Cash and deposits	611,481,297	747,606,800
Placements with banks and non-bank financial institutions	202,670,790	171,650,383
Financial assets at fair value through profit or loss	N/A	75,855,420
Derivative financial instruments	41,969,268	66,203,044
Trade and other receivables	118,100,291	112,864,432
Inventories	15,495,787	19,840,361
Contract assets	2,235,065	N/A
Financial assets held under resale agreements	2,991,422	54,625,933
Loans and advances to customers and other parties	3,428,654,427	3,115,806,170
Investment in financial assets
- Financial assets measured at fair value through profit and loss	337,710,559	N/A
- Financial assets measured at fair value through other comprehensive income	589,036,307	N/A
- Financial assets measured at amortised cost	653,252,924	N/A
Available-for-sale financial assets	N/A	667,412,396
Held-to-maturity investments	N/A	218,702,786
Investments classified as receivables	N/A	538,985,157
Long-term equity investments	63,314,753	58,631,339
Investment properties	3,282,293	4,204,706
Fixed assets	40,623,287	41,676,485
Construction in progress	16,463,167	12,758,058
Intangible assets	13,627,758	23,927,863
Goodwill	8,494,866	8,286,807
Deferred tax assets	24,147,726	23,921,974
Other assets	24,300,069	38,786,402
Total assets	6,197,852,056	6,001,746,516

Consolidated Balance Sheet (continued)

as at 30 Septemer 2018 (Unaudited)

30 September 2018	31 December 2017
Borrowing from central banks	319,580,000	238,082,461
Placements from banks and non-bank financial institutions	107,767,303	75,341,379
Financial liabilities held for trading	947,830	-
Derivative financial instruments	40,361,330	65,295,254
Trade and other payables	139,892,097	144,634,268
Financial assets sold under repurchase agreements	73,949,537	134,499,933
Deposits from banks and non-bank financial institutions and customers	4,346,241,766	4,196,767,258
Employee benefits payables	14,747,320	15,165,497
Taxes payable	7,980,069	13,092,071
Bank and other loans	45,840,937	43,420,072
Contract liabilities	1,894,221	N/A
Debt instruments issued	473,561,321	488,817,567
Provisions	6,925,372	2,705,096
Deferred tax liabilities	1,803,456	2,204,279
Other liabilities	16,936,369	21,149,185
Total liabilities	5,598,428,928	5,441,174,320
Paid-in capital	139,000,000	139,000,000
Capital reserve	40,057,496	39,485,307
Other comprehensive income/(loss)	144,818	(6,985,379)
Surplus reserve	7,392,237	7,392,237
Gerneral reserve	36,629,540	36,617,842
Retained earnings	176,852,615	154,070,403
Total equity attributable to owners of the Company	400,076,706	369,580,410
Non-controlling interests	199,346,422	190,991,786
Total owners' equity	599,423,128	560,572,196
Total liabilities and owners' equity	6,197,852,056	6,001,746,516

Consolidated Income Statement

for the nine months ended 30 Septemer 2018 (Unaudited)CITIC Corporation Limited

Expressed in Renminbi '000

Operating income

Less: Total operating costs

Including: Operating costs

Taxes and surcharges

Selling and distribution expenses

General and administrative expenses

Research and development expenses

Financial expenses

Expected Credit losses

Impairment losses

Net profit for the period

Including: Net profit of the entity before business combination under common control

Continuous operating net profit

Attributable to: Owners of the Company

Non-controlling interests

Add:

Operating profit

2018	2017
(Restated)
203,302,659	194,913,599
151,354,159	141,596,292
67,583,787	62,026,733
1,639,374	1,453,974
1,719,212	1,770,811
36,858,133	33,823,321
568,767	429,076
1,899,223	2,446,999
41,015,831	N/A
69,832	39,645,378
Other income	224,537	415,991
Investment income	4,391,614	4,886,560
Gain/(Loss) from changes in fair value	261,696	(303,422)
Gain on disposal of assets	21,851	1,995
56,848,198	58,318,431
359,115	545,466
225,376	159,467
56,981,937	58,704,430
10,709,446	11,621,969
46,272,491	47,082,461
-	43,935
46,272,491	47,082,461
30,787,231	33,356,713
15,485,260	13,725,748

Add: Less:Non-operating income Non-operating expenses

Profit before income tax

Less:Income tax expense

Consolidated Cash Flow Statement

for the nine months ended 30 September 2018 (Unaudited)CITIC Corporation Limited

Expressed in Renminbi '000

2018	2017
(Restated)
Cash flows from operating activities
Cash received from sale of goods and rendering of services	82,752,370	78,571,718
Net decrease in deposits with banks and non-bank financial institutions	1,051,954	4,742,304
Net increase in deposits from customers	171,922,872	-
Net decrease in deposits with central banks	40,681,544	24,167,069
Net increase in borrowing from central banks	81,497,539	38,635,370
Interests, fee and commission received	223,631,290	213,973,348
Net increase in placements from banks and non-bank financial institutions	30,671,359	-
Net decrease in placements with banks and non-bank financial institutions	10,866,041	32,070,577
Net decrease in investments classified as receivables	N/A	445,827,372
Net decrease ininvestment in financial assets	131,681,683	N/A
Net decrease in financial assets held under resale agreements	51,632,309	170,150,667
Net decrease in financial assets at fair value through profit or loss	N/A	25,121,994
Net increase in financial liabilities at fair value through profit or loss	956,491	332,242
Refund of taxes	772,427	750,096
Cash received from other operating activities	48,416,712	18,880,456
Sub-total of cash inflows from operating activities	876,534,591	1,053,223,213
Cash paid for goods and services	73,210,525	66,880,141
Net increase in loans and advance to customers and other parties	350,150,569	326,304,414
Net decrease in deposits from banks and non-bank financial institutions	30,645,066	129,464,816
Net decrease in deposits from customers	-	308,273,660
Net decrease in financial assets held under resale agreements	60,559,485	46,925,507
Net decrease in placements from banks and non-bank financial institutions	-	7,744,116
Interests, fee and commission paid	78,199,213	79,918,987
Cash paid to and on behalf of employees	23,256,888	23,692,978
Cash paid for various taxes	29,235,128	25,147,267
Cash paid for other operating activities	51,545,019	36,522,350
Sub-total of cash outflows from operating activities	696,801,893	1,050,874,236
Net cash flows from operating activities	179,732,698	2,348,977