CITIC Resources' 2026 Interim Net Profit Up 88.3%

For the oil and gas business, on the basis of its annual production stabilisation and growth targets, the Group optimised its production mix by prioritising the release of production capacity from high-margin blocks to fully benefit from the price upside. The JSC Karazhanbasmunai (“KBM”) oilfield advanced the development of its coastal area while managing the production decline of existing wells, achieving production capacity replacement. Newly drilled wells in the Hainan-Yuedong Block oilfield achieved the highest daily oil production of any new wells in the field in nearly six years. The Seram Block oilfield validated and implemented perforation and water shutoff programmes to tap the remaining oil potential.

For the non-oil-and-gas business, under the principle of “control is essential for subsidiaries, exercising of rights is essential for participating interests”, the Group further strengthened its shareholder engagement, deepened its involvement in project management and operational decision-making, actively captured the pricing windows for aluminium, coal and other products, and optimised sales phasing and inventory management to enhance overall value creation. Meanwhile, the Group capitalised on the high share price of Alcoa to optimise its asset structure by reducing its Alcoa shareholding in the first quarter of 2026, realising proceeds of approximately US$366 million. The Group also established a Singapore trading company to fully leverage the geographical advantages of the Singapore platform, continuously expanding trading channels and customer networks, and transferring its oil and gas trading operations to the new entity in an orderly manner. The Group will continue to explore supply chain deployment and diversify trading models, with a view to steadily increasing the revenue scale of its oil and gas trading business.

During the Period, the Group recorded revenue of approximately HK$5.07 billion (1H2025: approximately HK$9.38 billion), representing a year-on-year decrease of approximately 46.0%. The decrease was primarily attributable to the sharp reduction in oil and gas trading resources available in the market due to the situation in the Middle East, which significantly heightened transaction uncertainties and prompted the Group to proactively de-risk by reducing its oil and gas trading volume by approximately 60.5% year-on-year. Nevertheless, most of the Group’s segments and investments recorded profits during the Period, and the Group continued to maintain a strong financial position. Benefiting from the cash received from the disposal of a significant portion of its Alcoa shares, the Group’s cash and deposits increased significantly to approximately HK$7.04 billion as at 30 June 2026 (31 December 2025: approximately HK$3.52 billion). As at 30 June 2026, the Group’s total assets amounted to approximately HK$15.97 billion, while net assets attributable to ordinary shareholders of the Company amounted to approximately HK$9.37 billion; the debt-to-asset ratio was approximately 40.3%, and the annualised return on equity was approximately 6.6%. The Group maintained a healthy asset position, ample liquidity and a solid operating foundation, enabling it to effectively navigate market volatility and build up financial reserves in support of its “Investment + Trade” dual-driver development strategy.

Mr. Hao Weibao, Executive Director, Chairman and Chief Executive Officer of CITIC Resources, said: “Looking ahead, facing an external environment where opportunities and challenges coexist, we will remain unwavering in deepening our ‘Investment + Trade’ dual-driver development strategy, and systematically advance our work on ‘Upstream Asset Deployment, Trading Business Expansion and Production and Operation Enhancement’. For upstream asset deployment, we will focus on the oil and gas and aluminium industry chains as core areas, actively tracking and prudently screening quality assets with cost competitiveness and resource potential. For trading business expansion, we will focus on the restorative growth of trading volumes and the enhancement of sales prices for equity oil to fully improve our market value conversion capabilities. For production and operation enhancement, we will leverage technological innovation and lean management as dual enablers to systematically enhance the operational efficiency and value contribution of our existing assets. Pursuing organic growth and external expansion in parallel, we will make steady and sustainable progress in a complex and volatile external environment, and remain fully committed to delivering stable and sustainable long-term returns to our shareholders.”

For details of CITIC Resources’ 2026 interim results, please refer to the Group’s interim results announcement on the Hong Kong Stock Exchange and the Group’s website.

About CITIC Resources Holdings Limited (Stock Code: 1205.HK)

CITIC Resources Holdings Limited has been listed on the Hong Kong Stock Exchange since 1997. The principal activities of CITIC Resources include the exploration, development and production of oil and coal, investments in bauxite mining, alumina refining and aluminium smelting, as well as oil and gas trading. CITIC Limited is the largest shareholder of CITIC Resources with an interest of about 59.5%.