Citic net profit dips in first nine months

Citic Corporation Limited, one of China’s largest conglomerates, has reported a net profit for the first nine months of the year of RMB47 billion (MOP55.4 billion/US$6.94 billion), according to a filing with the Hong Kong Stock Exchange. This translates as less than 1 per cent reduction year-on-year, from the RMB47.5 billion in profit recorded in profit during the same period last year.
Citic Limited operates in the financial services, resources and energy, engineering contracting, manufacturing and real estate sectors through a variety of listed and unlisted companies.
In Macau, the group operates in a variety of sectors including the telecom sector under CITIC Telecom, parent company of Companhia de Telecommunicaçōes de Macau (CTM); and the banking sector under CITIC Bank, and the manufacturing sector under Macau Cement Manufacturing Ltd.
As of September 30, the group held assets worth RMB309.8 billion, a 4.8 per cent increase compared to the same nine-month period in 2015. These assets were primarily concentrated in long-term equity investments, amounting to RMB210.1 billion.
However, during the period, the group saw a RMB20.7 billion loss in net cash flows from its operating activities, despite receiving RMB198 billion in interest, fees and commissions over the nine-month period.
Overall operating income for the group during the period amounted to RMB179.44 billion, a 2.3 per cent year-on-year drop. Operating costs for the nine months, however, increased 4.7 per cent year-on-year, hitting RMB133.1 billion, compared to RMB127.1 billion in the same period last year.
Currently, the group holds RMB542.87 billion in available for sale financial assets, RMB8.26 billion-worth of construction projects in progress and over RMB2.8 trillion in loans and advances to customers and other parties, offset only by RMB1.08 trillion in investments classified as receivables. Citic, as at September 30, had RMB648.2 billion in cash and deposits.