CITIC : Announcement - Unaudited Financial Statements of CITIC Corporation Limited for the three months ended 31 March 2021

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 THREE MONTHS ENDED 31 MARCH 2021

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 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 the relevant regulations of the People's Bank of China and the National Association of Financial Market Institutional Investors.

The unaudited financial statements of CITIC Corporation for the three months ended 31 March 2021 are available on China Bond, China Money, Beijing Financial Assets Exchange and Shanghai Clearing House at www.chinabond.com.cn, www.chinamoney.com.cn, www.cfae.cn and www.shclearing.com, respectively, and are set out at the end of this announcement.

By Order of the Board

CITIC Limited

Zhu Hexin

Chairman

Hong Kong, 30 April 2021

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 31 March 2021 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	31 March 2021 31 December 2020
Cash and deposits	561,168,638	609,157,090
Placements with banks and non-bank financial institutions	182,845,536	167,076,499
Derivative financial instruments	30,726,004	40,193,221
Trade and other receivables	140,891,429	122,485,357
Contract assets	11,777,108	11,094,122
Inventories	28,676,442	24,777,060
Financial assets held under resale agreements	65,508,880	120,379,159
Loans and advances to customers and other parties	4,557,415,226	4,391,775,049
Investments in financial assets
- Financial assets held for trading	519,901,175	437,954,061
- Bond investments	1,074,313,798	973,353,137
- Other bond investments	727,986,899	724,024,994
- Other equity instruments investments	6,707,309	6,488,354
Long-term equity investments	73,984,910	73,076,234
Investment properties	9,233,426	9,233,064
Fixed assets	46,099,836	46,928,501
Construction in progress	7,187,365	7,008,176
Right-of-use assets	12,305,232	12,421,292
Intangible assets	16,867,529	17,119,002
Goodwill	7,107,065	7,107,564
Deferred tax assets	47,341,988	45,464,454
Other assets	27,292,899	29,391,768
Total assets	8,155,338,694	7,876,508,158

Consolidated Balance Sheet (continued)

as at 31 March 2021 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	31 March 2021 31 December 2020
Borrowing from central banks	228,518,915	224,390,619
Placements from banks and non-bank financial institutions	71,633,676	62,540,677
Financial liabilities held for trading	2,937,550	10,455,776
Derivative financial instruments	28,836,695	39,783,344
Trade and other payables	96,229,993	94,164,784
Contract liabilities	13,927,132	13,804,976
Financial assets sold under repurchase agreements	92,153,478	79,765,280
Deposits from banks and non-bank financial institutions and customers	5,889,831,233	5,744,797,446
Employee benefits payables	24,155,196	27,778,021
Taxes payable	12,533,767	13,323,536
Bank and other loans	44,582,082	40,148,760
Debt instruments issued	859,390,195	756,622,112
Lease liabilities	12,271,166	12,226,263
Provisions	11,900,838	11,428,173
Deferred tax liabilities	2,528,849	2,543,668
Other liabilities	15,006,495	12,335,184
Total liabilities	7,406,437,260	7,146,108,619
Paid-in capital	139,000,000	139,000,000
Capital reserve	40,286,286	40,218,269
Other comprehensive income	2,296,615	2,435,506
Surplus reserve	10,955,233	10,955,233
General reserve	48,117,580	48,117,580
Retained earnings	228,410,180	215,665,658
Total equity attributable to owners of the Company	469,065,894	456,392,246
Non-controlling interests	279,835,540	274,007,293
Total owners' equity	748,901,434	730,399,539
Total liabilities and owners' equity	8,155,338,694	7,876,508,158

Consolidated Income Statement

for the three months ended 31 March 2021 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
		2021	2020
Operating income	72,482,366	60,283,447
Less:	Total operating costs	50,712,403	41,816,624
Including: Operating costs	14,594,067	5,070,619
	Taxes and surcharges	642,202	562,169
	Selling and distribution expenses	573,448	141,377
	General and administrative expenses	13,605,949	12,346,276
	Research and development expenses	285,637	130,167
	Financial expenses	414,152	674,075
	Expected credit losses	20,550,161	22,543,762
	Impairment losses	46,787	348,179
Add:	Loss from changes in fair value	(115,576)	(159,416)
	Investment income	265,265	47,776
	Assets disposal gain	1,256	9,461
	Other gain	75,426	78,648
Operating profit	21,996,334	18,443,292
Add:	Non-operating income	104,032	94,912
Less:	Non-operating expenses	51,795	30,332
Profit before income tax	22,048,571	18,507,872
Less:	Income tax expense	3,349,910	2,777,017
Net profit for the period	18,698,661	15,730,855
Attributable to: Owners of the Company	12,743,408	10,638,369
	Non-controlling interests	5,955,253	5,092,486

Consolidated Cash Flow Statement

for the three months ended 31 March 2021 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2021	2020
Cash flows from operating activities
Cash received from sale of goods and rendering of services	18,187,524	9,246,177
Net decrease in deposits with banks and non-bank financial institutions	-	11,111,912
Net increase in deposits from customers	126,426,032	235,275,727
Net increase in borrowing from central banks	2,695,444	20,000
Net increase in deposits from banks and non-bank financial institutions	25,236,276	3,192,094
Interests, fee and commission received	85,311,175	83,474,415
Net increase in placements from banks and non-bank financial institutions	7,514,109	-
Net increase in financial assets sold under repurchase agreements	12,089,128	-
Net decrease in financial assets held under resale agreements	54,901,652	-
Net increase of financial liabilities held for trading	-	396,090
Refund of taxes	197,767	131,848
Cash received from other operating activities	8,714,937	5,928,054
Sub-total of cash inflows from operating activities	341,274,044	348,776,317
Cash paid for goods and services	20,416,881	7,868,294
Net increase in loans and advance to customers and other parties	174,244,680	149,852,301
Net increase in deposits with central banks	6,306,580	2,168,874
Net increase in deposits with banks and non-bank financial institutions	567,825	-
Net increase in placements with banks and non-bank financial institutions	36,039,142	10,088,071
Net decrease in placements from banks and non-bank financial institutions	-	32,909,455
Net decrease in financial assets sold under repurchase agreements	-	27,647,752
Net increase in financial assets held under resale agreements	-	97,036,702
Net decrease of financial liabilities held for trading	7,230,931	-
Net increase of financial assets held for trading purposes	23,553,617	18,355,186
Interests, fee and commission paid	31,526,905	28,477,223
Cash paid to and on behalf of employees	12,734,437	9,913,094
Cash paid for various taxes	10,549,019	12,031,491
Cash paid for other operating activities	31,561,074	24,293,139
Sub-total of cash outflows from operating activities	354,731,091	420,641,582
Net cash flows from operating activities	(13,457,047)	(71,865,265)

Consolidated Cash Flow Statement (continued)

for the three months ended 31 March 2021 (Unaudited)
CITIC Corporation Limited	Expressed in Renminbi '000
	2021	2020
Cash flows from investing activities:
Cash received from disposal of financial investments	806,485,997	532,259,715
Cash received from returns on investments	353,373	395,226
Cash received from disposal of fixed assets, intangible assets and other long-term assets	36,087	256,828
Cash received from disposal of associates and joint ventures	31,204	-
Net cash received from disposal of subsidiaries	-	2,878,089
Cash received from other investing activities	167,099	104,489
Sub-total of cash inflows from investing activities	807,073,760	535,894,347
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	1,967,878	1,320,966
Cash paid for acquisition of financial investments	952,154,027	632,129,741
Net cash payment for disposal of subsidiaries	20,200	-
Net cash payment for acquisition of subsidiaries	-	5,000,000
Cash paid for acquisition of associates and joint ventures	14,527	700,000
Cash paid for other investing activities	452,507	452,754
Sub-total of cash outflows from investing activities	954,609,139	639,603,461
Net cash flows from investing activities	(147,535,379)	(103,709,114)
Cash flows from financing activities:
Cash received from capital contributions	38,721	73,424
(Including: Cash received by subsidiaries from non-controlling interests)	38,721	73,424
Cash received from new banks and other loans	11,663,360	13,127,560
Cash received from issuance of debt instruments	303,039,165	135,816,319
Cash received from other financing activities	236,775	111,197
Sub-total of cash inflows from financing activities	314,978,021	149,128,500
Cash paid for repayment of banks and other loans and debt instruments issued	207,725,240	83,168,939
Principal and interest elements of lease payment	838,141	665,806
Cash paid for dividends, profit distributions or interest	6,821,778	9,332,271
(Including: Dividends and profits paid by subsidiaries to non-controlling interests)	-	11,002
Transactions with non-controlling interests	-	1,109,208
Cash paid for other financing activities	34,774	256,950
Sub-total of cash outflows from financing activities	215,419,933	94,533,174
Net cash flows from financing activities	99,558,088	54,595,326
Effect of foreign exchange rate changes on cash and cash equivalents	(329,640)	2,211,252
Net decrease in cash and cash equivalents	(61,763,978)	(118,767,801)
Add: Cash and cash equivalents at the beginning of the period	351,939,004	386,389,154
Cash and cash equivalents at the end of the period	290,175,026	267,621,353

Balance Sheet

as at 31 March 2021 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
	31 March 2021	31 December 2020
Cash and deposits	1,796,760	15,069,425
Trade and other receivables	27,881,531	28,236,724
Loans and advances to customers and other parties	3,041,410	3,822,210
Investments in financial assets
- Financial assets held for trading	48,172,137	34,599,619
Long-term equity investments	223,781,652	223,032,780
Fixed assets	516,984	527,984
Intangible assets	24,364	26,282
Other assets	6,622	11,643
Total assets	305,221,460	305,326,667
Trade and other payables	23,643,739	24,083,847
Taxes payable	8,415	69
Debt instruments issued	44,783,899	44,845,926
Provisions	700,000	700,000
Deferred tax liabilities	708,580	725,556
Other liabilities	888,334	843,643
Total liabilities	70,732,967	71,199,041
Paid-in capital	139,000,000	139,000,000
Capital reserve	49,706,126	49,706,126
Other comprehensive income	1,476,387	1,675,624
Surplus reserve	10,955,233	10,955,233
Retained earnings	33,350,747	32,790,643
Total owners' equity	234,488,493	234,127,626
Total liabilities and owners' equity	305,221,460	305,326,667

Income Statement

for the three months ended 31 March 2021 (Unaudited)

CITIC Corporation Limited	Expressed in Renminbi '000
		2021	2020
Operating income	1,315,426	(11,663)
Less:	Total operating costs	777,150	761,061
Including: Taxes and surcharges	25	10
	General and administrative expenses	171,615	157,388
	Financial expenses	605,510	603,663
Operating profit / (loss)	538,276	(772,724)
Add:	Non-operating income	5,003	91
Less:	Non-operating expenses	-	881
Profit / (loss) before income tax	543,279	(773,514)
Less:	Income tax expense	(16,825)	(365,160)
Net profit / (loss) for the period	560,104	(408,354)

Cash Flow Statement

for the three months ended 31 March 2021 (Unaudited)

CITIC Corporation Limited

Expressed in Renminbi '000

20212020

Cash flows from operating activities:
Interests, fee and commission received	16,734	39,570
Cash received from other operating activities	13,536	89,991
Sub-total of cash inflows from operating activities	30,270	129,561
Interests, fee and commission paid	1,225	58
Cash paid for various taxes	286	175,320
Cash paid for other operating activities	123,834	91,996
Sub-total of cash outflows from operating activities	125,345	267,374
Net cash flows from operating activities	(95,075)	(137,813)
Cash flows from investing activities:
Cash received from disposal of financial investments	17,364,577	6,486,522
Cash received from entrusted loans to subsidiaries	800,000	-
Sub-total of cash inflows from investing activities	18,164,577	6,486,522
Cash paid for acquisition of financial investments	31,656,881	1,500,000
Sub-total of cash outflows from investing activities	31,656,881	1,500,000
Net cash flows from investing activities	(13,492,304)	4,986,522
Cash flows from financing activities:
Cash received from issuance of debt instruments	-	6,600,000
Cash received from new bank and other loans	-	4,000,000
Sub-total of cash inflows from financing activities	-	10,600,000
Cash paid for repayment of banks and other loans and debt instruments issued	-	4,000,000
Cash paid for dividends, profit distributions or interest	674,450	3,927,686
Sub-total of cash outflows from financing activities	674,450	7,927,686
Net cash flows from financing activities	(674,450)	2,672,314
Effect of foreign exchange rate changes on cash and cash equivalents	(1,561)	(13,350)
Net (decrease)/increase in cash and cash equivalents	(14,263,390)	7,507,673
Add: Cash and cash equivalents at the beginning of the period	14,837,607	13,376,980
Cash and cash equivalents at the end of the period	574,217	20,884,653