Producer Manufacturing
CITIC Ltd.
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Company Background
Citic is China's largest state-run conglomerate. It is engaged in a wide variety of businesses, from property development to heavy industry to resources, though its primary focus is the financial sector, including banking and securities. It is affiliated with Japanese trading house Itochu and Thai conglomerate Charoen Pokphand Group.
Subsidiaries Citic Securities, China's largest securities company, and China Citic Bank, a second-tier bank, generate steady revenues.
One group business that has been struggling is Citic's iron ore mine development project in Western Australia.
In 2014, Citic transferred its assets, including shares in group companies, from its unlisted intermediary holding company to its Hong Kong-based listed company as part of reforms of state-run companies. State-run investment funds, such as Qatar Holding and Singapore's Temasek Holdings, invested in the Hong Kong company.
Citic got its start as China International Trust and Investment Corp., which was established in 1979 with the backing of Deng Xiaoping.
Citic founder Rong Yiren was dubbed the "Red Capitalist" and later served as vice president of China. Citic Chairman Chang Zhenming is known to have close ties with Chinese President Xi Jinping.
Business Summary
CITIC Ltd. is an investment holding company, which engages in finance, energy, engineering, manufacturing, and real estate businesses. It operates through the following segments: Financial Services, Resources and Energy, Manufacturing, Engineering Contracting, Real Estate, and Other Businesses. The Financial Services spans the banking, trust, asset management, securities and insurance services. The Resources and Energy segment comprises of the exploration, processing, and trading of resources and energy products, including crude oil, coal, and iron ore. The Manufacturing segment includes manufacturing of special steels, heavy machineries, aluminium wheels, and other products. The Engineering Contracting segment involves contracting and design services for infrastructure, real estate, and industrial projects, etc. The Real Estate segment manages the development, sale and holding of properties. The Other Businesses segment focuses on investment and operation of infrastructures, telecommunication services, motor and food and consumer products business, commercial aviation services, publication services, and others. The company was founded in 1979 and is headquartered in Hong Kong.
Financial Highlights
| Dec 2019 | HKD | USD |
| Revenue | 566,497M | 72,301.55M |
| Gross Profit | 283,349M | 36,163.60M |
| Operating income | 172,131M | 21,968.94M |
| Income before tax | 82,458M | 10,524.04M |
| Net income | 53,903M | 6,879.59M |
| EBITDA | 193,937M | 24,752.02M |
| Diluted EPS | 1.85 | 0.23 |
| Dividends Per Share | 0.46 | 0.05 |
| Total Assets | 8,289.92B | 1,063.92B |
| Total liabilities | 7,395.43B | 949,130.24M |
| Total equity | 591,526M | 75,916.47M |
| Operating cash flow | 136,057M | 17,364.84M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 395,310M | 381,662M | 450,536M | 533,285M | 566,497M |
| Gross Profit | 236,964M | 215,339M | 227,667M | 262,422M | 283,349M |
| Operating income | 146,750M | 130,833M | 137,256M | 144,084M | 172,131M |
| Income before tax | 74,059M | 65,592M | 69,330M | 83,269M | 82,458M |
| Net income | 40,501M | 32,809M | 43,902M | 50,239M | 53,903M |
| EBITDA | 158,524M | 143,125M | 151,427M | 159,175M | 193,937M |
| Diluted EPS | 1.57 | 0.93 | 1.51 | 1.72 | 1.85 |
| Dividends Per Share | 0.30 | 0.33 | 0.36 | 0.41 | 0.46 |
| Total Assets | 6,803.30B | 7,239.48B | 7,520.73B | 7,660.71B | 8,289.92B |
| Total liabilities | 6,153.97B | 6,550.68B | 6,734.97B | 6,850.05B | 7,395.43B |
| Total equity | 479,066M | 483,129M | 543,078M | 558,545M | 591,526M |
| Operating cash flow | -51,024M | 237,974M | -74,070M | 82,403M | 136,057M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 50,990.81M | 49,167.67M | 57,814.26M | 68,042.35M | 72,301.55M |
| Gross Profit | 30,565.85M | 27,741.08M | 29,214.98M | 33,482.67M | 36,163.60M |
| Operating income | 18,929.19M | 16,854.58M | 17,613.14M | 18,383.81M | 21,968.94M |
| Income before tax | 9,552.82M | 8,449.90M | 8,896.65M | 10,624.37M | 10,524.04M |
| Net income | 5,224.20M | 4,226.62M | 5,633.64M | 6,410.04M | 6,879.59M |
| EBITDA | 20,447.92M | 18,438.10M | 19,431.61M | 20,309.29M | 24,752.02M |
| Diluted EPS | 0.20 | 0.11 | 0.19 | 0.22 | 0.23 |
| Dividends Per Share | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 |
| Total Assets | 877,829.26M | 933,748.07M | 962,063.48M | 978,460.95M | 1,063.92B |
| Total liabilities | 794,045.98M | 844,906.76M | 861,546.93M | 874,919.78M | 949,130.24M |
| Total equity | 61,813.76M | 62,313.89M | 69,471.29M | 71,339.89M | 75,916.47M |
| Operating cash flow | -6,581.55M | 30,657.04M | -9,504.90M | 10,513.87M | 17,364.84M |
Valuation Measures
| Dec 2019 | |
| PER | 5.62 |
| ROA | 0.67% |
| ROE | 9.37% |
| Operating margin | 30.38% |
| Profit margin | 9.51% |
Key executives
- Vice Chairman & President: Guo Hua Xi
- Vice President: Zheng Jun Liu
- Vice President & Member of the Executive Committee: Zhu Gaoming
- Joint Secretary: Wing Kay Choy
- Joint Secretary: Kang Wang
Shareholders
- Government of China (58.1%)
- Chia Tai Bright Investment Co. Ltd. (20%)
- The Vanguard Group, Inc. (0.5%)
- Hang Seng Investment Management Ltd. (0.4%)
- BlackRock Fund Advisors (0.4%)
- Dimensional Fund Advisors LP (0.2%)
- State Street Global Advisors Asia Ltd. (0.2%)
- Norges Bank Investment Management (0.2%)
- Tokio Marine Holdings, Inc. (0.1%)
- Robeco Institutional Asset Management BV (0.1%)
Contact Details
- Website:http://www.citic.com
- Address: 32nd floor, CITIC Tower, 1 Tim Mei Avenue Central, Hong Kong, Hong Kong
- Phone: +852.2820.2111
Related Companies
- CITIC Tourism Group Co., Ltd.
- CITIC Building Property Management Co.. Ltd.
- CITIC Capital Mansion Co., Ltd.
- CITIC Engineering Design & Construction Co., Ltd.
- CITIC Finance Company International Ltd.
- CITIC Mining International Ltd.
- CITIC Asset Operation Co.,Ltd.
- CITIC Finance Co., Ltd.
- CITIC Pacific Ltd.
- Dynasty One Investments Ltd.
- CITIC Pacific Trading Co. Ltd.
- CITIC Dicastal (Europe) Investment Holdings GmbH & Co. KG
- Pacific Resources Trading Pte Ltd.
- Transshipment Leasing Pte Ltd.
- CITIC Pacific Finance (2005) Ltd.
- Medea Group
- CITIC Urban Development & Operation Co., Ltd.
- CITIC Construction Fund Management Co., Ltd.
- CITIC (Jiangyin) Terminal Co., Ltd.
- CITIC Kazakhstan LLP
- Affluent East Investments Ltd.
- Talisgold Ltd.
- Metal Link Ltd.
- CITIC Pacific Ltd. (British Virgin Islands)
- CITIC Heye Investment Co., Ltd
- Goldon Investment Ltd.
- Loreto Maritime Pte Ltd.
- Palesto Holdings, Inc.
- Cheng Xin Chartering Pte Ltd.
- CITIC Environment Investment Group Co., Ltd.
Competitors
- China Grand Automotive Services Group Co., Ltd. Class A
- Metso Outotec Oyj
- Iochpe Maxion S.A.
- Superior Industries International, Inc.
- Bear Creek Mining Corporation
- Champion Iron Ltd.
- Guizhou Guihang Automotive Components Co., Ltd. Class A
- Hudbay Minerals Inc
- Le Belier SA
- MARTINREA International Inc.
- Shiloh Industries, Inc.
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Last Updated on 27 Oct, 2020
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