CITIC Corporation Limited, the wholly owned on-shore arm of Hong Kong-listed CITIC Limited, reported softer earnings for the three months ended 31 March 2026, even as its balance-sheet scale continued to expand.
Revenue and Profitability • Operating income fell 8.30% year on year to RMB 93.58 billion, outpacing a 5.51% decline in total operating costs to RMB 60.74 billion. • Operating profit slipped 11.66% to RMB 33.69 billion. • Profit before tax decreased 10.66% to RMB 34.07 billion, while net profit came in at RMB 28.77 billion, down 9.87%. • Net profit attributable to owners of the Company was broadly stable at RMB 15.85 billion (Q1 2025: RMB 15.84 billion), cushioned by a 19.55% drop in non-controlling interests’ share of earnings to RMB 12.93 billion.
Cost and Credit Trends • Expected credit losses narrowed to RMB 14.33 billion from RMB 16.68 billion, signifying a 14.1% improvement. • Financial expenses contracted sharply to RMB 0.32 billion (Q1 2025: RMB 1.26 billion), reflecting lower funding costs. • Operating costs rose 7.3% to RMB 21.42 billion, while general and administrative expenses eased 6.8% to RMB 23.25 billion.
Balance Sheet Dynamics (vs. 31 Dec 2025) • Total assets increased 2.29% to RMB 12.82 trillion, led by a 2.41% rise in loans and advances to RMB 5.90 trillion and a 6.50% expansion in trading financial assets to RMB 1.60 trillion. • Deposits from banks, non-bank financial institutions and customers climbed 4.32% to RMB 7.32 trillion. • Debt instruments issued declined 5.32% to RMB 1.40 trillion, while borrowings from the central bank rose 11.96% to RMB 228.48 billion. • Owners’ equity grew 2.40% to RMB 1.34 trillion.
Liquidity and Cash Flow • Net cash used in operating activities reversed to an outflow of RMB 5.94 billion (Q1 2025 inflow: RMB 268.73 billion), primarily due to higher loan growth and investment outlays. • Investing activities consumed RMB 111.84 billion, slightly narrower than the prior-year outflow of RMB 122.63 billion. • Financing generated a net inflow of RMB 100.24 billion, driven by RMB 437.09 billion of new debt issuance versus RMB 378.96 billion of repayments. • Overall cash and cash equivalents declined by RMB 18.27 billion to RMB 657.71 billion.
Standalone Parent Performance CITIC Corporation Limited (parent-level) booked an operating loss of RMB 1.18 billion, widening from a RMB 0.69 billion loss a year earlier, and registered a net loss of RMB 1.16 billion. The parent’s cash balance nonetheless increased to RMB 3.72 billion after RMB 7.00 billion of new borrowings and bond issuance.
Capital and Reserves The Group’s paid-in capital remained at RMB 139.00 billion. General reserve rose marginally to RMB 71.42 billion, while other comprehensive income stayed negative at RMB -5.97 billion, reflecting mark-to-market movements.
Outlook The first-quarter performance shows resilience in owner-level earnings despite revenue pressure and a reversal of operating cash flow. Balance-sheet growth and controlled credit costs offer a buffer, although continued monitoring of liquidity and profitability trends remains essential.
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