The company released its 2008 Semiannual Report on 9 Aug 2008 on which its net profit for 1H 2008 was RMB 4.77 bln, increasing by 13.33% from a year earlier, with basic EPS of RMB 0.72.

Affected by decreasing market turnover in 1H 2008, the company achieved a RMB 4.62 bln net income in the securities brokerage business, decreasing by 30.44% from a year earlier, while its brokerage business market share increased to 8.69%, 0.88% higher from a year earlier.

Although the Shanghai Composite Index fell by 48% in 1H 2008, the company achieved a net gain of RMB 2.41 bln from securities investment, increasing by 17.28%. And revenue from its underwriting business increased by 96.94% to RMB 932 mln.

The company is currently entering into new innovative businesses like industry funds, direct investment and asset securitization. In 1H 2008, the company was approved to establish CITIC Industry Investment Fund Management Co., Ltd. to develop businesses in industry investment fund management. Meanwhile, to enhance its direct investment scale, the company has boosted the registered capital of Beijing Jinshi Investment Co., Ltd. to RMB 1.5 bln.

In 1H 2008, the assets managed by the fund companies controlled by the company increased by 2.09% from the 8.08% at the end of 2007, with a market share of 10.17%, maintaining the lead. The company has signed with several enterprises to cooperate in the asset management field and has launched several RMB wealth management products.

As for disadvantages faced in its business, the company still relies on traditional core businesses such as brokerage and underwriting. To strengthen its overall competitiveness, the company must develop innovative businesses and promote its buyers' business.

Source: Securities Times

Date: 9 Aug 2008

CN01/NW/DM/BT/KM