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CITIC LIMITED
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Financial Review
Overview
Profit attributable to ordinary shareholders
For the first half of 2016, the Group achieved net profit attributable to ordinary shareholders of HK$20,182
million, a decrease of HK$17,503 million, or 46% from the first half of 2015. Excluding the gains recognised for
the same period last year as a result of the disposal of 3.16% equity interests in CITIC Securities and the dilution
of CITIC Limited’s equity interests following the placing of new shares by CITIC Securities, as well as the impact
of translation into Hong Kong Dollars, the Company’s reporting currency, resulting from the depreciation of
Renminbi in the first half of 2016 given CITIC Limited’s main operations and assets are in mainland China, a
decrease would have been HK$6,632 million, or 24% from the half of 2015.
The financial services segment recorded net profit attributable to ordinary shareholders of HK$21,941 million.
Excluding the gains recognised for the same period last year as a result of the disposal of equity interests in
CITIC Securities and the dilution of CITIC Limited’s equity interests following the placing of new shares by CITIC
Securities, as well as the impact of translation due to RMB depreciation for the current period, the decrease from
the first half of 2015 would have been HK$395 million or 2%.
The banking business reported growth in net profit and remained the principal source of profit for the financial
services segment. Following RMB depreciation and the introduction of China National Tobacco Corporation as a
strategic investor of CITIC Bank during the first half of 2016, the percentage of the Group’s shareholdings in CITIC
Bank decreased as compared to the same period last year, resulting in a corresponding 5% decrease in net profit
of CITIC Bank attributable to the Group. The trust business reported sound performance for the first half of 2016,
while the securities business experienced a significant decline in results in line with the overall conditions of
China’s securities market from the first half of 2015.
For the non-financial segments, the manufacturing business achieved net profit attributable to ordinary
shareholders of HK$1,641 million, an increase of HK$334 million, or 26% from the first half of 2015. Growth was
reported in the special steel, aluminium wheel and aluminium casting businesses.
The engineering contracting business maintained stable performance, contributing net profit attributable to
ordinary shareholders of HK$1,060 million, representing a year-on-year increase of HK$65 million or 7%.
The resources and energy business recorded net profit attributable to ordinary shareholders of HK$911 million.
There was an increase of HK$223 million, or 32% compared to the same period last year, excluding gains realised
through the release of reserve recognised in previous years upon the acquisition of controlling rights for Jiangsu
Ligang Electric Power Limited (
江蘇利港電力有限公司
) and Jiangyin Ligang Electric Power Generation Company
Limited (
江陰利港發電股份有限公司
) during the same period last year. The growth in profit for the resources
and energy business was mainly attributable to the improvements in the crude oil business and bulk commodity
trade business from the first half of 2015.
The Group recorded tax liabilities and other expenses relating to reorganisation for the first half of 2016
following its proposed disposal of its residential property projects in Mainland China to China Overseas Land
& Investment Limited (COLI). Moreover, profit for the property business also decreased in line with the fewer
number of property projects completed and delivered and decrease in valuation gain on investment properties
recognised.