CITIC Ltd - ADR

Strong interim operating momentum; profit growth outpaced revenue - 1H 2026 revenue RMB 408bn (+10.7% YoY) driven mainly by CITIC Metal and CITIC Securities benefiting from commodity price strength and capital markets activity, respectively. - Net profit RMB 70.8bn (+18.3% YoY); profit attributable to shareholders RMB 33.8bn (+8.1% YoY).

Quality of earnings improving: fees/commissions up, costs down, productivity up - Net fee & commission income RMB 39.7bn (+22% YoY); financial-business income 24.7% of total revenue (+1.6pp YoY). - Cost-to-income ratio 31.6% (down 2.6pp YoY), with subsidiaries reporting improved efficiency (notably CITIC Bank / CITIC Securities / CITIC Metal referenced). - Profit-to-labor cost 197% (+19pp YoY) and finance costs eased: “nonfinancial business interest expense” RMB 4.76bn, -3% YoY (RMB 900m lower).

Balance-sheet strengthening and shareholder return: assets up, interest-bearing liabilities down; interim dividend increased - Total assets RMB 13.65tn (+4.9% H1); financial-sector assets RMB 12.96tn (+5.2%). - “Nonfinancial business interest-bearing liabilities” -3.9%; CITIC HQ used funds from Sino Iron returns and subsidiary dividends to reduce debt; CITIC Metal and CITIC Steel also referenced as deleveraging. - EPS RMB 1.16 (+8.1% YoY). - Interim dividend: RMB 0.21/share (+5% YoY) (no buyback mentioned).