Business and Financial Review
Our manufacturing business includes the manufacture of special steel, heavy equipment and aluminium wheels and castings, all of which enjoy leading market positions in their respective segments in China.
- CITIC Pacific Special Steel is the largest dedicated manufacturer of special steel in China.
- CITIC Heavy Industries is one of the largest manufacturers of heavy equipment in China.
- CITIC Dicastal is the world’s largest aluminium wheel manufacturer and exporter.
In 2016, the business recorded revenue of HK$62.4 billion, representing a year-on-year increase of 4%. Profit attributable to ordinary shareholders was HK$1.7 billion, 30% down from last year.
CITIC Pacific Special Steel recorded higher sales compared with 2015. With a focus on higher-margin products and an optimised procurement strategy to manage raw material costs, CITIC Pacific Special Steel achieved a profit growth of over 20% in 2016, excluding the impairment recorded last year. Strong domestic and overseas demand for CITIC Dicastal’s products delivered double digit growth in revenue and profit. Heavy Industries suffered a considerable loss due to factors that included continuing weak demand from downstream industries for heavy machinery and equipment, and an impairment charge.