CITIC : Announcement - Unaudited Financial Statements of CITIC Corporation Limited for the six months ended 30 June 2020

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 2020

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, China Securities Regulatory Commission and Shanghai Stock Exchange.

The unaudited financial statements of CITIC Corporation for the six months ended 30 June 2020 are available on China Bond, China Money, Beijing Financial Assets Exchange, Shanghai Clearing House and Shanghai Stock Exchange at www.chinabond.com.cn, www.chinamoney.com.cn, www.cfae.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

Zhu Hexin

Chairman

Hong Kong, 31 August 2020

As at the date of this announcement, the executive directors of the Company are Mr Zhu Hexin (Chairman), Mr Xi Guohua and Ms Li Qingping; the non-executive directors of the Company are Mr Song Kangle, Mr Liu Zhuyu, Mr Peng Yanxiang, Ms Yu Yang, 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 2020	(Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2020 31 December 2019
Cash and deposits	585,186,318	636,017,415
Placements with banks and non-bank financial institutions	219,806,926	203,060,737
Derivative financial instruments	25,104,509	17,433,199
Trade and other receivables	132,518,598	130,342,868
Contract assets	10,769,825	9,753,400
Inventories	15,798,005	14,430,214
Financial assets held under resale agreements	38,285,190	9,958,161
Loans and advances to customers and other parties	4,113,599,366	3,925,022,750
Investments in financial assets
- Financial assets held for trading	340,726,138	354,046,041
- Bond investments	952,521,005	932,503,997
- Other bond investments	739,773,823	628,780,182
- Other equity instruments investments	6,616,205	5,985,229
Long-term equity investments	74,185,042	72,771,391
Investment properties	9,445,723	9,429,705
Fixed assets	38,583,462	39,234,426
Construction in progress	6,167,153	5,766,131
Right-of-use assets	12,064,503	12,768,274
Intangible assets	14,785,820	14,534,076
Goodwill	6,994,116	7,527,758
Deferred tax assets	45,119,377	34,393,379
Other assets	26,232,253	25,360,981
Total assets	7,414,283,357	7,089,120,314

Consolidated Balance Sheet (continued)

as at 30 June 2020 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2020 31 December 2019
Borrowing from central banks	126,228,930	240,298,225
Placements from banks and non-bank financial institutions	74,744,309	95,059,140
Financial liabilities held for trading	6,266,470	1,286,156
Derivative financial instruments	24,670,210	16,897,736
Trade and other payables	83,678,123	87,549,887
Contract liabilities	14,860,181	12,826,952
Financial assets sold under repurchase agreements	107,844,265	114,450,216
Deposits from banks and non-bank financial institutions and customers	5,478,275,398	5,033,350,028
Employee benefits payables	23,640,492	18,780,263
Taxes payable	12,959,708	13,600,581
Bank and other loans	40,296,300	39,413,727
Debt instruments issued	667,862,038	674,690,522
Lease liabilities	11,845,260	12,208,531
Provisions	9,350,732	8,791,512
Deferred tax liabilities	2,162,843	2,306,518
Other liabilities	13,660,657	21,839,742
Total liabilities	6,698,345,916	6,393,349,736
Paid-in capital	139,000,000	139,000,000
Capital reserve	40,153,179	40,328,800
Other comprehensive income	6,969,566	7,152,156
Surplus reserve	10,142,684	10,142,684
General reserve	41,879,468	41,879,468
Retained earnings	212,977,783	197,232,083
Total equity attributable to owners of the Company	451,122,680	435,735,191
Non-controlling interests	264,814,761	260,035,387
Total owners' equity	715,937,441	695,770,578
Total liabilities and owners' equity	7,414,283,357	7,089,120,314

Consolidated Income Statement

for the six months ended 30 June 2020 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
		2020	2019
Operating income	124,297,945	128,977,159
Less:	Total operating costs	91,649,009	89,721,941
Including: Operating costs	14,143,006	24,843,825
	Taxes and surcharges	1,191,140	1,109,996
	Selling and distribution expenses	323,940	1,061,436
	General and administrative expenses	25,271,762	26,202,151
	Research and development expenses	256,331	437,177
	Financial expenses	1,427,888	1,313,678
	Expected credit losses	47,957,441	34,484,767
	Impairment losses	1,077,501	268,911
Add:	(Loss)/gain from changes in fair value	(3,074)	310,844
	Investment income	265,895	1,088,894
	Assets disposal gain/(loss)	18,462	(8,594)
	Other gain	252,312	212,502
Operating profit	33,182,531	40,858,864
Add:	Non-operating income	176,675	332,629
Less:	Non-operating expenses	209,532	223,321
Profit before income tax	33,149,674	40,968,172
Less:	Income tax expense	5,489,284	6,868,022
Net profit for the period	27,660,390	34,100,150
Attributable to: Owners of the Company	18,145,700	23,293,630
	Non-controlling interests	9,514,690	10,806,520

Consolidated Cash Flow Statement

for the six months ended 30 June 2020 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2020	2019
Cash flows from operating activities
Cash received from sale of goods and rendering of services	16,323,424	32,370,971
Net decrease in deposits with banks and non-bank financial institutions	8,138,085	9,650,313
Net increase in deposits from customers	392,367,004	380,111,998
Net decrease in deposits with central banks	-	45,474,381
Net increase in deposits from banks and non-bank financial institutions	43,005,165	63,624,504
Interests, fee and commission received	168,770,719	165,235,475
Net increase of financial liabilities held for trading	4,674,833	-
Net decrease of financial assets held for trading purposes	-	4,725,400
Refund of taxes	214,561	396,383
Cash received from other operating activities	13,063,946	13,673,795
Sub-total of cash inflows from operating activities	646,557,737	715,263,220
Cash paid for goods and services	15,250,246	30,167,947
Net increase in loans and advance to customers and other parties	223,479,898	263,758,003
Net decrease in borrowing from central banks	113,520,000	47,007,320
Net increase in deposits with central banks	11,613,073	-
Net increase in placements with banks and non-bank financial institutions	9,354,930	24,490,895
Net decrease in placements from banks and non-bank financial institutions	20,590,147	53,197,290
Net decrease in financial assets sold under repurchase agreements	6,589,304	77,916,669
Net increase in financial assets held under resale agreements	28,318,909	35,967,960
Net increase of financial assets held for trading purposes	26,702,776	-
Net decrease of financial liabilities held for trading	-	957,583
Interests, fee and commission paid	60,308,911	62,580,057
Cash paid to and on behalf of employees	19,752,327	18,281,226
Cash paid for various taxes	26,235,044	19,538,645
Cash paid for other operating activities	26,751,360	78,890,232
Sub-total of cash outflows from operating activities	588,466,925	712,753,827
Net cash flows from operating activities	58,090,812	2,509,393

Consolidated Cash Flow Statement (continued)

for the six months ended 30 June 2020 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2020	2019
Cash flows from investing activities:
Cash received from disposal of financial investments	1,155,903,451	1,015,537,505
Cash received from returns on investments	1,485,134	1,092,058
Cash received from disposal of fixed assets, intangible assets and other long-term assets	138,961	609,519
Cash received from disposal of associates and joint ventures	13,698	21,200
Net cash received from disposal of subsidiaries	2,862,971	-
Cash received from other investing activities	258,314	671,179
Sub-total of cash inflows from investing activities	1,160,662,529	1,017,931,461
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	2,860,431	2,642,172
Cash paid for acquisition of financial investments	1,268,602,921	1,198,110,405
Net cash payment for disposal of subsidiaries	-	11,529
Net cash payment for acquisition of subsidiaries	7,000	60,582
Cash paid for acquisition of associates and joint ventures	700,000	506,154
Cash paid for other investing activities	850,320	1,530,045
Sub-total of cash outflows from investing activities	1,273,020,672	1,202,860,887
Net cash flows from investing activities	(112,358,143)	(184,929,426)
Cash flows from financing activities:
Cash received from capital contributions	229,483	236,714
(Including: Cash received by subsidiaries from non-controlling interests)	229,483	236,714
Cash received from new banks and other loans	15,556,545	9,722,864
Cash received from issuance of debt instruments	276,961,123	254,542,896
Cash received from other financing activities	57,195	50,535
Sub-total of cash inflows from financing activities	292,804,346	264,553,009
Cash paid for repayment of banks and other loans and debt instruments issued	294,012,893	229,222,577
Principal and interest elements of lease payment	1,768,162	1,234,247
Cash paid for dividends, profit distributions or interest	17,167,176	13,117,025
(Including: Dividends and profits paid by subsidiaries to non-controlling interests)	289,453	532,747
Transactions with non-controlling interests	747,037	-
Cash paid for other financing activities	164,235	1,104,114
Sub-total of cash outflows from financing activities	313,859,503	244,677,963
Net cash flows from financing activities	(21,055,157)	19,875,046
Effect of foreign exchange rate changes on cash and cash equivalents	2,486,949	133,382
Net decrease in cash and cash equivalents	(72,835,539)	(162,411,605)
Add: Cash and cash equivalents at the beginning of the period	386,389,154	432,801,673
Cash and cash equivalents at the end of the period	313,553,615	270,390,068

Balance Sheet

as at 30 June 2020	(Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	30 June 2020	31 December 2019
Cash and deposits	28,359,394	17,678,774
Trade and other receivables	39,099,172	30,093,052
Loans and advances to customers and other parties	4,805,611	5,263,957
Investments in financial assets
- Financial assets held for trading	33,569,890	40,749,488
Long-term equity investments	220,888,846	220,095,002
Fixed assets	521,599	537,771
Intangible assets	9,271	8,706
Other assets	-	4,423
Total assets	327,253,783	314,431,173
Trade and other payables	23,346,131	24,426,931
Taxes payable	322	150
Bank and other loans	6,000,480	6,503,077
Debt instruments issued	53,987,908	45,739,411
Provisions	700,000	700,000
Deferred tax liabilities	536,035	1,240,892
Other liabilities	916,664	823,786
Total liabilities	85,487,540	79,434,247
Paid-in capital	139,000,000	139,000,000
Capital reserve	49,614,251	49,614,251
Other comprehensive income	1,272,963	1,162,291
Surplus reserve	10,142,684	10,142,684
Retained earnings	41,736,345	35,077,700
Total owners' equity	241,766,243	234,996,926
Total liabilities and owners' equity	327,253,783	314,431,173

Income Statement

for the six months ended 30 June 2020 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
		2020	2019
Operating income	9,766,248	10,718,891
Less:	Total operating costs	1,354,189	1,184,854
Including: Taxes and surcharges	1,250	1,798
	General and administrative expenses	377,626	326,689
	Financial expenses	975,313	856,367
Operating profit	8,412,059	9,534,037
Add:	Non-operating income	81	932
Less:	Non-operating expenses	57,841	95,914
Profit before income tax	8,354,299	9,439,055
Less:	Income tax expense	(704,346)	446,567
Net profit for the period	9,058,645	8,992,488

Cash Flow Statement

for the six months ended 30 June 2020 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2020	2019
Cash flows from operating activities:
Interests, fee and commission received	72,085	80,378
Cash received from other operating activities	4,077,038	91,022
Sub-total of cash inflows from operating activities	4,149,123	171,400
Interests, fee and commission paid	3,430	3,238
Cash paid for various taxes	182,643	5,395
Cash paid for other operating activities	321,249	835,603
Sub-total of cash outflows from operating activities	507,322	844,236
Net cash flows from operating activities	3,641,801	(672,836)
Cash flows from investing activities:
Cash received from disposal of financial investments	6,834,627	5,923,650
Sub-total of cash inflows from investing activities	6,834,627	5,923,650
Cash paid for acquisition of financial investments	144,457	26,398,500
Entrusted loans to subsidiaries	-	940,000
Sub-total of cash outflows from investing activities	144,457	27,338,500
Net cash flows from investing activities	6,690,170	(21,414,850)
Cash flows from financing activities:
Cash received from new bank and other loans	8,500,000	-
Cash received from issuance of debt instruments	11,000,000	15,000,000
Sub-total of cash inflows from financing activities	19,500,000	15,000,000
Cash paid for repayment of banks and other loans and debt instruments issued	12,006,438	7,018,397
Cash paid for dividends, profit distributions or interest	4,384,730	983,427
Sub-total of cash outflows from financing activities	16,391,168	8,001,824
Net cash flows from financing activities	3,108,832	6,998,176
Effect of foreign exchange rate changes on cash and cash equivalents	(33,472)	(2,272)
Net increase/(decrease) in cash and cash equivalents	13,407,331	(15,091,782)
Add: Cash and cash equivalents at the beginning of the period	13,376,980	24,363,924
Cash and cash equivalents at the end of the period	26,784,311	9,272,142