CITIC : Announcement - Unaudited Financial Statements of CITIC Corporation Limited for the six months ended 30 June 2019

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 SIX MONTHS ENDED 30 JUNE 2019

This announcement is 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 the Company, is a company incorporated in the People's Republic of China ("PRC"). As CITIC Corporation issued medium-term notes, super & short-term commercial paper and corporate bond 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 the relevant regulations of the People's Bank of China, the National Association of Financial Market Institutional Investors, the China Securities Regulatory Commission and the Shanghai Stock Exchange.

The unaudited financial statements of CITIC Corporation for the six months ended 30 June 2019 are available on China Bond, China Money, Shanghai Clearing House and Shanghai Stock Exchange at www.chinabond.com.cn, www.chinamoney.com.cn, www.shclearing.com and www.sse.com.cn respectively, and are set out at the end of this announcement.

By Order of the Board

CITIC Limited

Chang Zhenming

Chairman

Hong Kong, 30 August 2019

As at the date of this announcement, the executive directors of the Company are Mr Chang Zhenming (Chairman), Mr Wang Jiong and Ms Li Qingping; the non-executive directors of the Company are Mr Song Kangle, Ms Yan Shuqin, Mr Liu Zhuyu, Mr Peng Yanxiang, Mr Liu Zhongyuan and Mr Yang Xiaoping; and the independent non-executive directors of the Company are Mr Francis Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Mr Shohei Harada and Mr Gregory Lynn Curl.

Consolidated Balance Sheet

as at 30 June 2019	(Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2019	31 December 2018
Cash and deposits	502,524,772	700,888,245
Placements with banks and non-bank financial institutions	171,779,550	175,265,871
Derivative financial instruments	19,136,543	32,463,941
Trade and other receivables	144,350,434	84,451,888
Contract assets	10,618,273	9,097,650
Inventories	21,474,098	16,828,212
Financial assets held under resale agreements	47,297,268	11,351,027
Loans and advances to customers and other parties	3,761,139,917	3,539,746,163
Investment in financial assets
- Financial assets held for trading	341,194,128	339,991,470
- Bond investments	933,216,195	788,003,870
- Other bond investments	553,437,874	510,736,071
- Other equity instruments investments	6,816,483	5,697,356
Long-term equity investments	68,140,344	66,505,105
Investment properties	3,679,887	3,454,460
Fixed assets	40,041,625	40,797,807
Construction in progress	13,615,272	12,540,196
Right-of-use assets	13,015,433	N/A
Intangible assets	14,491,451	14,684,831
Goodwill	7,986,042	7,907,658
Deferred tax assets	29,060,155	25,486,780
Other assets	24,468,331	19,878,009
Total assets	6,727,484,075	6,405,776,610

Consolidated Balance Sheet (continued)

as at 30 June 2019 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2019	31 December 2018
Borrowing from central banks	237,881,450	287,068,437
Placements from banks and non-bank financial institutions	60,730,037	113,172,370
Financial liabilities held for trading	206,154	1,286,139
Derivative financial instruments	18,799,528	31,749,866
Trade and other payables	97,046,780	102,563,381
Contract liabilities	15,134,791	11,098,005
Financial assets sold under repurchase agreements	44,118,183	121,431,553
Deposits from banks and non-bank financial institutions and customers	4,882,613,836	4,435,506,735
Employee benefits payables	14,933,725	17,455,237
Taxes payable	8,227,401	9,130,273
Bank and other loans	45,901,275	48,043,941
Debt instruments issued	632,111,242	592,541,004
Lease liabilities	12,470,415	N/A
Provisions	7,089,681	7,571,169
Deferred tax liabilities	1,999,008	1,681,154
Other liabilities	13,256,126	19,488,256
Total liabilities	6,092,519,632	5,799,787,520
Paid-in capital	139,000,000	139,000,000
Capital reserve	39,648,740	39,659,954
Other comprehensive income	3,979,024	3,360,628
Surplus reserve	8,667,689	8,667,689
Gerneral reserve	36,842,295	36,842,295
Retained earnings	194,491,868	172,032,790
Total equity attributable to owners of the Company	422,629,616	399,563,356
Non-controlling interests	212,334,827	206,425,734
Total owners' equity	634,964,443	605,989,090
Total liabilities and owners' equity	6,727,484,075	6,405,776,610

Consolidated Income Statement

	for the six months ended 30 June 2019 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
		2019	2018
Operating income	128,977,159	133,195,721
Less:	Total operating costs	89,721,941	96,323,630
Including: Operating costs	24,843,825	41,950,180
	Taxes and surcharges	1,109,996	1,072,632
	Selling and distribution expenses	1,061,436	1,262,348
	General and administrative expenses	26,202,151	24,213,847
	Research and development expenses	437,177	349,051
	Financial expenses	1,313,678	1,624,532
	Expected credit losses	34,484,767	25,742,720
	Asset impairment losses	268,911	108,320
Add:	Gain from changes in fair value	310,844	324,197
	Investment income	1,088,894	2,859,242
	Assets disposal (loss)/gain	(8,594)	18,866
	Other income	212,502	120,574
Operating profit	40,858,864	40,194,970
Add:	Non-operating income	332,629	256,833
Less:	Non-operating expenses	223,321	108,035
Profit before income tax	40,968,172	40,343,768
Less:	Income tax expense	6,868,022	7,881,148
Net profit for the period	34,100,150	32,462,620
Attributable to:
	Owners of the Company	23,293,630	22,149,108
	Non-controlling interests	10,806,520	10,313,512

Consolidated Cash Flow Statement

for the six months ended 30 June 2019 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2019	2018
Cash flows from operating activities
Cash received from sales of goods and rendering of services	32,370,971	48,170,517
Net decrease in deposits with banks and non-bank financial institutions	9,650,313	5,023,127
Net increase in deposits from customers	380,111,998	174,739,818
Net decrease in deposits with central banks	45,474,381	41,407,990
Net increase in deposits from banks and non-bank financial institutions	63,624,504	-
Net increase in borrowing from central banks	-	28,017,539
Interests, fee and commission received	165,235,475	144,662,968
Net decrease in placements with banks and non-bank financial institutions	-	484,746
Net increase in financial liabilities held for trading	-	1,911,580
Net decrease in financial assets held for trading	4,725,400	104,570,112
Refund of taxes	396,383	577,739
Cash received from other operating activities	13,673,795	34,761,988
Sub-total of cash inflows from operating activities	715,263,220	584,328,124
Cash paid for goods and services	30,167,947	44,932,672
Net increase in loans and advance to customers and other parties	263,758,003	205,608,125
Net decrease in borrowing from central banks	47,007,320	-
Net decrease in deposits from banks and non-bank financial institutions	-	113,252,130
Net increase in placements with banks and non-bank financial institutions	24,490,895	-
Net decrease in financial assets sold under repurchase agreements	77,916,669	64,194,473
Net increase in financial assets held under resale agreements	35,967,960	13,714,469
Net decrease in placements from banks and non-bank financial institutions	53,197,290	7,265,435
Net decrease in financial liabilities held for trading	957,583	-
Interests, fee and commission paid	62,580,057	53,476,837
Cash paid to and on behalf of employees	18,281,226	17,328,949
Cash paid for various taxes	19,538,645	20,122,379
Cash paid for other operating activities	78,890,232	37,852,219
Sub-total of cash outflows from operating activities	712,753,827	577,747,688
Net cash flows from operating activities	2,509,393	6,580,436

Consolidated Cash Flow Statement (continued)

for the six months ended 30 June 2019 (Unaudited)

CITIC Corporation Limited

Expressed in Renminbi '000

20192018

Cash flows from investing activities:
Cash received from disposal of financial investments	1,015,537,505	349,551,125
Cash received from returns on investments	1,092,058	1,794,405
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	609,519	190,504
Net cash received from disposal of associates and joint ventures	21,200	1,332,884
Net cash received from disposal of subsidiaries	-	1,472,893
Cash received from other investing activities	671,179	336,681
Sub-total of cash inflows from investing activities	1,017,931,461	354,678,492
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	2,642,172	2,433,262
Cash paid for acquisition of financial assets	1,198,110,405	494,892,482
Net cash payment for disposal of subsidiaries	11,529	-
Net cash payment for acquisition of subsidiaries	60,582	-
Net cash payment for acquisition of associates and joint ventures	506,154	1,375,962
Cash paid for other investing activities	1,530,045	4,765,250
Sub-total of cash outflows from investing activities	1,202,860,887	503,466,956
Net cash flows from investing activities	(184,929,426)	(148,788,464)
Cash flows from financing activities:
Cash received from capital contributions	236,714	573,447
(Including: Cash received by subsidiaries from non-controlling interests)	236,714	573,447
Cash received from new banks and other loans	9,722,864	33,555,778
Cash received from issuance of new debt instruments	254,542,896	569,334,008
Cash received from other financing activities	50,535	8,779
Sub-total of cash inflows from financing activities	264,553,009	603,472,012
Cash paid for repayment of bank and other loans and debt instruments issued	229,222,577	481,060,387
Cash paid for dividends, profit distributions or interests	13,117,025	23,568,952
(Including: Dividends and profits paid by subsidiaries to non-controlling interests)	532,747	4,826,028
Repayment of principals and interests related to lease liabilities	1,234,247	N/A
Cash paid for other financing activities	1,104,114	1,140,772
Sub-total of cash outflows from financing activities	244,677,963	505,770,111
Net cash flows from financing activities	19,875,046	97,701,901
Effect of foreign exchange rate changes on cash and cash equivalents	133,382	1,532,428
Net decrease in cash and cash equivalents	(162,411,605)	(42,973,699)
Add: Cash and cash equivalents at the beginning of the period	432,801,673	391,147,481
Cash and cash equivalents at the end of the period	270,390,068	348,173,782

Balance Sheet

as at 30 June 2019 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2019	31 December 2018
Cash and deposits	13,535,973	32,587,113
Trade and other receivables	38,184,477	30,091,469
Loans and advances to customers and other parties	5,072,354	4,324,067
Investment in financial assets
- Financial assets held for trading	35,648,018	7,820,884
- Bond investments	-	1,050,555
Long-term equity investments	215,354,336	214,225,432
Fixed assets	530,950	547,566
Intangible assets	4,876	5,500
Other assets	469	211
Total assets	308,331,453	290,652,797

Balance Sheet (continued)

as at 30 June 2019 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2019	31 December 2018
Trade and other payables	15,524,505	14,975,083
Taxes payable	-	85
Bank and other loans	7,004,308	7,007,446
Debt instruments issued	45,673,535	37,502,573
Provisions	700,000	700,000
Deferred tax liabilities	617,749	171,245
Other liabilities	729,041	815,595
Total liabilities	70,249,138	61,172,027
Paid-in capital	139,000,000	139,000,000
Capital reserve	49,614,251	49,614,251
Other comprehensive income	1,105,137	686,080
Surplus reserve	8,667,689	8,667,689
Retained earnings	39,695,238	31,512,750
Total owners' equity	238,082,315	229,480,770
Total liabilities and owners' equity	308,331,453	290,652,797

Income Statement

for the six months ended 30 June 2019 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
		2019	2018
Operating income	10,718,891	9,212,259
Less:	Total operating costs	1,184,854	1,361,317
Including: Taxes and surcharges	1,798	5,643
	General and administrative expenses	326,689	292,801
	Financial expenses	856,367	1,062,873
Operating profit	9,534,037	7,850,942
Add:	Non-operating income	932	1,064
Less:	Non-operating expenses	95,914	1
Profit before income tax	9,439,055	7,852,005
Less:	Income tax expense	446,567	(194,745)
Net profit for the period	8,992,488	8,046,750

Cash Flow Statement

for the six months ended 30 June 2019 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	2019	2018
Cash flows from operating activities：
Interests, fee and commission received	80,378	108,965
Cash received from other operating activities	91,022	8,853,463
Sub-total of cash inflows from operating activities	171,400	8,962,428
Interests, fee and commission paid	3,238	85
Cash paid for various taxes	5,395	38,973
Cash paid for other operating activities	835,603	1,130,055
Sub-total of cash outflows from operating activities	844,236	1,169,113
Net cash flows from operating activities	(672,836)	7,793,315
Cash flows from investing activities：
Cash received from disposal of financial investments	5,923,650	9,333,502
Sub-total of cash inflows from investing activities	5,923,650	9,333,502
Cash paid for acquisition of financial investments	26,398,500	10,754,259
Entrusted loans to subsidiaries	940,000	5,530,000
Sub-total of cash outflows from investing activities	27,338,500	16,284,259
Net cash flows from investing activities	(21,414,850)	(6,950,757)
Cash flows from financing activities：
Cash received from issuance of new debt instruments	15,000,000	-
Cash received from new bank and other loans	-	15,000,000
Sub-total of cash inflows from financing activities	15,000,000	15,000,000
Cash paid for repayment of bank and other loans and debt instruments issued	7,018,397	8,370,674
Cash paid for dividends, profit distributions or interests	983,427	6,470,847
Sub-total of cash outflows from financing activities	8,001,824	14,841,521
Net cash flows from financing activities	6,998,176	158,479
Effect of foreign exchange rate changes on cash and cash equivalents	(2,272)	(12,470)
Net (decrease)/increase in cash and cash equivalents	(15,091,782)	988,567
Add: Cash and cash equivalents at the beginning of the period	24,363,924	14,058,669
Cash and cash equivalents at the end of the period	9,272,142	15,047,236