CITIC Ltd.

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: Comprehensive Financial Services, Advanced Intelligent Manufacturing, Advanced Materials, New Consumption, and New-Type Urbanisation. The Comprehensive Financial Services segment spans the banking, trust, asset management, securities and insurance services. The Advanced Intelligent Manufacturing segment includes manufacturing of special steels, heavy machineries, aluminium wheels, and other products. The Advanced Materials segment comprises of the exploration, processing, and trading of resources and energy products, including crude oil, coal, and iron ore. The New Consumption 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 New-Type Urbanisation segment manages the development, sale and holding of properties. The company was founded in 1979 and is headquartered in Hong Kong.

Financial Highlights

Dec 2022	HKD	USD
Revenue	771,133M	98,478.26M
Gross Profit	357,711M	45,681.82M
Operating income	203,021M	25,926.98M
Income before tax	134,973M	17,236.85M
Net income	75,481M	9,639.37M
EBITDA	226,565M	28,933.69M
Diluted EPS	2.59	0.33
Dividends Per Share	0.69	0.08
Total Assets	11,794.19B	1,511.11B
Total liabilities	10,414.13B	1,334.29B
Total equity	737,251M	94,459.41M
Operating cash flow	-87,289M	-11,147.32M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	533,285M	566,497M	552,949M	708,936M	771,133M
Gross Profit	262,422M	283,349M	276,644M	311,412M	357,711M
Operating income	144,084M	172,131M	179,438M	191,489M	203,021M
Income before tax	83,269M	82,458M	83,225M	103,578M	134,973M
Net income	50,239M	53,903M	56,628M	70,222M	75,481M
EBITDA	159,175M	193,937M	199,210M	212,709M	226,565M
Diluted EPS	1.72	1.85	1.94	2.41	2.59
Dividends Per Share	0.41	0.46	0.48	0.60	0.69
Total Assets	7,660.71B	8,289.92B	9,740.82B	10,685.52B	11,794.19B
Total liabilities	6,850.05B	7,395.43B	8,732.18B	9,519.93B	10,414.13B
Total equity	558,545M	591,526M	674,276M	751,407M	737,251M
Operating cash flow	82,403M	136,057M	324,801M	-133,877M	-87,289M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	68,042.35M	72,301.55M	71,293.10M	91,206.85M	98,478.26M
Gross Profit	33,482.67M	36,163.60M	35,668.40M	40,064.13M	45,681.82M
Operating income	18,383.81M	21,968.94M	23,135.39M	24,635.66M	25,926.98M
Income before tax	10,624.37M	10,524.04M	10,730.40M	13,325.63M	17,236.85M
Net income	6,410.04M	6,879.59M	7,301.19M	9,034.28M	9,639.37M
EBITDA	20,309.29M	24,752.02M	25,684.64M	27,365.68M	28,933.69M
Diluted EPS	0.22	0.23	0.25	0.31	0.33
Dividends Per Share	0.05	0.05	0.06	0.07	0.08
Total Assets	978,460.95M	1,063.92B	1,256.25B	1,370.58B	1,511.11B
Total liabilities	874,919.78M	949,130.24M	1,126.17B	1,221.08B	1,334.29B
Total equity	71,339.89M	75,916.47M	86,960.15M	96,379.95M	94,459.41M
Operating cash flow	10,513.87M	17,364.84M	41,877.41M	-17,223.69M	-11,147.32M

Valuation Measures

Dec 2022
PER	3.17
ROA	0.67%
ROE	10.14%
Operating margin	26.32%
Profit margin	9.78%

Key executives

Vice Chairman & President: Guo Hua Xi
Vice President-Telecom Project Development: Bing Chi Li
Deputy General Manager: He Ying Fang
Director-Financial Control Department: Alan Kwok Wing
Joint Secretary: Wing Kay Choy

Shareholders

Government of China (58.1%)
Chia Tai Bright Investment Co. Ltd. (20%)
The Vanguard Group, Inc. (0.5%)
BlackRock Fund Advisors (0.4%)
State Street Global Advisors Asia Ltd. (0.2%)
Tokio Marine Holdings, Inc. (0.1%)
Norges Bank Investment Management (0.1%)
Dimensional Fund Advisors LP (0.1%)
BlackRock Advisors (UK) Ltd. (0.1%)
Geode Capital Management LLC (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

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Competitors

China Grand Automotive Services Group Co., Ltd. Class A
Iochpe Maxion S.A.
Huada Automotive Technology Corp., Ltd. Class A
Superior Industries International, Inc.
Howmet Aerospace Inc.
MARTINREA International Inc.
Georg Fischer AG

Last Updated on 31 May, 2023