CITIC(00267)2023-08-31 04:00Financial Performance - CITIC Limited reported operating revenue of RMB 334 billion for the first half of 2023, representing a year-on-year growth of 2.8%[1] - The net profit attributable to ordinary shareholders was RMB 32.1 billion, a year-on-year increase of 2.3% when excluding one-time revaluation gains from CITIC Securities in the same period last year[1] - Total revenue for the six months ended June 30, 2023, was RMB 333,986 million, an increase from RMB 324,847 million in the same period of 2022, representing a growth of approximately 4.5%[12] - The net profit for the six months ended June 30, 2023, was RMB 57,471 million, down from RMB 61,097 million in the same period of 2022, reflecting a decline of approximately 5.3%[13] - Basic and diluted earnings per share attributable to ordinary shareholders for the first half of 2023 was RMB 1.10, compared to RMB 1.43 in the same period of 2022, indicating a decrease of about 23.1%[13] - The total comprehensive income for the six months ended June 30, 2023, was RMB 62,186 million, compared to RMB 59,384 million in the same period of 2022, representing an increase of approximately 3%[14] - The company reported a significant loss in trading activities amounting to RMB (9,883) million for the six months ended June 30, 2023, compared to a gain of RMB 3,310 million in 2022[33] - The company reported a pre-tax profit of RMB 69,263 million, up by 6% compared to the same period last year[25] Dividends - The board proposed an interim dividend of RMB 0.18 per share, amounting to a total dividend payout of RMB 5.236 billion[1] - Proposed interim dividend for 2023 is RMB 0.18 per share, compared to RMB 0.20 per share for the interim dividend in 2022[39] - The interim dividend for the year ending December 31, 2023, is set at RMB 0.18 per share, equivalent to HKD 0.1964844 per share, compared to HKD 0.20 per share in 2022[112] - The dividend will be distributed in cash on November 16, 2023, with a record date of September 29, 2023[112] - Shareholders must submit their dividend currency choice by October 19, 2023, to receive the dividend in RMB; otherwise, they will automatically receive it in HKD[113] Business Segments - The group operates five business segments: Comprehensive Financial Services, Advanced Manufacturing, Advanced Materials, New Consumption, and New Urbanization, each contributing to revenue generation and resource allocation[23] - The financial services segment remains the primary revenue source, driven by net interest income and net fee income, highlighting the group's strong position in the financial market[28] - The Advanced Manufacturing segment encompasses heavy machinery, special robots, aluminum wheels, and aluminum castings, highlighting the group's focus on high-tech production[23] - The Advanced Materials segment involves the extraction, processing, and trading of resources and energy products, including iron ore, copper, and crude oil[23] - The New Consumption segment covers automotive and food sales, telecommunications, publishing, and modern agriculture, reflecting the group's engagement in various consumer markets[23] - The New Urbanization segment includes real estate development, sales, and holding, as well as engineering contracting and design services, indicating a strategic focus on urban development[23] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 10,976,305 million, an increase from RMB 10,537,317 million as of December 31, 2022, representing a growth of approximately 4.2%[15] - The company's total liabilities reached RMB 9,700,131 million, up from RMB 9,302,630 million, indicating an increase of approximately 4.3%[16] - The total equity attributable to shareholders rose to RMB 684,613 million from RMB 660,478 million, reflecting a growth of about 3.6%[16] - The company's loans and advances increased to RMB 5,257,646 million from RMB 5,042,734 million, showing a growth of about 4.3%[15] - The company's total receivables increased to RMB 289,118 million from RMB 211,273 million, representing a growth of about 36.8%[15] Risk Management - CITIC Group emphasizes cash flow management, holding cash and bank deposits of RMB 5,180 million and committed standby credit of RMB 40,993 million[88] - The company actively manages interest rate risk, with a focus on optimizing deposit maturity structures and adjusting loan repricing periods[93] - Foreign exchange risk is assessed through open currency gap analysis, with strategies to match assets and liabilities in the same currency[94] - CITIC Group utilizes various financing tools to diversify funding sources and maintain a mix of short-term and long-term borrowings to minimize refinancing risks[90] - The company is committed to establishing a comprehensive treasury risk management system to address financial risks such as interest rate, foreign exchange, and market price risks[91] Corporate Governance - The company is committed to achieving excellence in corporate governance, continuously reviewing governance practices to ensure compliance with the latest regulatory requirements[109] - As of June 30, 2023, the company has adhered to all principles and provisions outlined in its corporate governance code[110] - The interim financial statements for the six months ended June 30, 2023, have been reviewed by the audit and risk committee along with external auditors[111] Market and Economic Conditions - The financial performance and business outlook of CITIC Group are significantly influenced by international and domestic economic developments, as well as political and legal environments[98] - Operational risks include potential delays in production and increased costs due to various challenges, such as government payment delays and unexpected technical failures[99] - The complexity and breadth of credit risks have increased due to the entry of new trading entities and the diversification of business models[100] - CITIC Group faces intense competition in its operating markets, which could lead to reduced product prices and profit margins[101] - The company is exposed to various local, national, and international regulatory risks that may impact its financial condition and operational performance[102] Innovation and Development - The company has established 10 national-level R&D platforms and 117 provincial-level R&D platforms to enhance innovation capabilities[7] - The company is focusing on digital transformation and has launched various AI applications showcased at the 2023 World Artificial Intelligence Conference[7] - The company achieved a significant increase in green credit and green bond underwriting, with double-digit growth year-on-year, emphasizing its commitment to ESG principles[10] - The company was recognized as one of the "Top 100 ESG Listed Companies in China," ranking second among comprehensive enterprises, highlighting its leading ESG image in the market[10] Legal Matters - The lawsuit filed by Mineralogy against the party claims damages of AUD 2.675 billion, representing the impairment of its subsidiary's share value due to the cancellation of oil exploration licenses[57] - The court has scheduled a hearing for the claims made by Mineralogy on September 27, 2023, regarding the amendments to the lawsuit[54] - The court ruled that the amendments proposed by Mineralogy were overly broad, which could prevent the party from understanding the case it must face in court[53]