CITIC(00267)2023-03-31 04:00Financial Performance - CITIC Limited achieved a net profit attributable to ordinary shareholders of HKD 75.5 billion for the year ended December 31, 2022, representing a year-on-year growth of 7.5%[1]. - The company achieved a revenue of HKD 384,322 million for the year ended December 31, 2022, compared to HKD 371,808 million in 2021, representing a growth of approximately 3%[11]. - The company's net profit for the year ended December 31, 2022, was HKD 123,011 million, an increase of 22.6% from HKD 100,278 million in 2021[12]. - Total revenue reached HKD 771,133 million, with a net interest income of HKD 185,315 million and net commission income of HKD 75,962 million[20]. - The Group's net profit attributable to equity holders for the year was HKD 100,278 million, compared to HKD 70,222 million in 2021, representing a significant increase of approximately 42.8%[21]. - Profit before tax rose to HKD 147,839 million, reflecting a 22% increase compared to HKD 121,141 million in the previous year[68]. - The company reported a significant increase in derivative financial assets, which rose to HKD 90,529 million from HKD 27,958 million, reflecting a growth of 224.5%[14]. Dividends - The board proposed a final dividend of HKD 0.451 per share, bringing the total dividend for 2022 to HKD 0.651 per share, an increase of HKD 0.045 compared to the previous year[1]. - Proposed final dividend for the year 2022 is HKD 0.451 per share, a decrease from HKD 0.456 in 2021, with total dividends amounting to HKD 0.651 per share for 2022, up from HKD 0.606 in 2021[115]. - The proposed final dividend will be subject to approval at the annual general meeting on June 21, 2023, and will be distributed on August 22, 2023[115]. Business Segments - The company operates in five business segments: integrated financial services, advanced manufacturing, advanced materials, new consumption, and new urbanization[18]. - The integrated financial services segment includes banking, trust, asset management, securities, and insurance[18]. - The advanced manufacturing segment focuses on heavy machinery, special robots, aluminum wheels, and aluminum castings[18]. - The advanced materials segment involves the extraction, processing, and trading of resources and energy products, including crude oil, coal, and iron ore[18]. - The new consumption segment encompasses automotive and food sales, telecommunications, publishing, and modern agriculture[18]. - The new urbanization segment includes real estate development, sales, engineering contracting, design services, infrastructure, and environmental protection[18]. Risk Management - The company has established a risk management and internal control system to identify and manage various risks associated with its business activities[82]. - The asset and liability management committee (ALCO) was set up to monitor the group's financial risks in accordance with relevant policies[83]. - CITIC Limited emphasizes cash flow management, with total cash and bank deposits of HKD 3,005 million and committed standby credit of HKD 57,381 million[85]. - The company actively manages interest rate risk through monitoring current and projected interest rate changes, aiming to keep risks at a reasonable level[90]. - The company is exposed to various local, national, and international regulatory risks that could significantly affect its financial condition and operational performance[100]. Investments and Acquisitions - The company successfully acquired the controlling stake in Tianjin Steel Pipe, increasing its annual production capacity to 20 million tons[6]. - The company launched a five-year technology innovation plan, with R&D investment exceeding RMB 10 billion in 2022[8]. - The company established the CITIC Hangzhou Science and Technology Innovation Fund to explore early-stage investments in new technologies[7]. Employee and Social Responsibility - The company has a total of 161,408 employees as of the end of 2022, with female employees accounting for 39%[106]. - The company invested over 5.6 million in support and care for disadvantaged employees, establishing 27 care rooms for female employees[107]. - The company has organized over 12,500 volunteers across more than 20 regions, focusing on pandemic control, blood donation, and low-carbon environmental protection[112]. - The company has invested nearly 65 million yuan in various regions to promote industrial, talent, cultural, and ecological revitalization, contributing to poverty alleviation and rural revitalization efforts[111]. Legal Matters - The ongoing litigation with Mineralogy involves claims of approximately AUD 1,800,438,000 related to losses incurred due to non-fulfillment of project agreements[47]. - The court has yet to schedule a hearing date for the ongoing litigation regarding the sustainable development plan for the mining project[54]. - The court's decision allows the company to seek project approval for expanding its mining operations within the leased area[58]. Environmental, Social, and Governance (ESG) - The company has implemented a comprehensive ESG management system, focusing on climate and environmental risks, and has established a systematic approach to ESG issues[104]. - The company is actively participating in green finance initiatives, including the development of green financial products and carbon trading markets[105]. - The company has launched a "dual carbon" action plan, aiming to enhance carbon asset management and promote sustainable development[105].