50 / 135
CITIC LIMITED
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
/ 48
3 Critical accounting estimates and judgment
(continued)
(b) Mineralogy Pty Ltd (“Mineralogy”) Disputes
(continued)
Port Dispute
Sino Iron and Korean Steel have developed port infrastructure at the Port of Cape Preston to be used
to export product from the Sino Iron Project. Mineralogy commenced legal proceedings in the Federal
Court of Australia seeking declarations that the port infrastructure has vested in it, that it is entitled
to possession, control and ownership of that infrastructure and that the Facilities Deeds between the
parties which regulate usage of the port infrastructure have been terminated by it.
The matter was heard by the Federal Court of Australia in June 2015. The Court’s reasons for decision
were handed down in August 2015. The Court refused to grant any of the relief sought by Mineralogy.
The effect of the decision was to preserve the status quo in relation to the operation of the port
facilities which continue to be operated by or on behalf of Sino Iron and Korean Steel. Mineralogy has
appealed the decision. The appeal was heard from 9 to 12 May 2016. Judgment was reserved.
4 Taxation
The statutory income tax rate of the Company and its subsidiaries located in Hong Kong for the six months
ended 30 June 2016 is 16.5% (six months ended 30 June 2015: 16.5%).
Except for the preferential tax treatments, the income tax rate applicable to the Group’s other subsidiaries
in Mainland China for the six months ended 30 June 2016 is 25% (six months ended 30 June 2015: 25%).
Taxation for other overseas subsidiaries is charged at the rates of taxation prevailing in the countries/
jurisdiction in which the overseas subsidiaries operate.
5 Revenue
As a multi-industry conglomerate, the Group is principally engaged in financial services, resources and
energy, manufacturing, engineering contracting, real estate and other businesses.
For financial services segment, revenue mainly comprises net interest income, net fee and commission
income and net trading gain (see Notes 5(a), 5(b) and 5(d)). For non-financial services segment, revenue
mainly comprises total invoiced value of sales of goods, services rendered to customers and revenue from
construction contracts (see Note 5(c)).
The Group’s customer base is diversified and there is no single customer with which transactions have
exceeded 10% of the Group’s revenue.