Year in Review
In 2017, the resources and energy business generated revenue of HK$63.5 billion, an increase of 24% from the previous year. It incurred a loss of HK$9.9 billion, mainly due to a non-cash impairment charge (after-tax) on the Sino Iron project in Western Australia.
During the year, CITIC Resources performed well owing to improved crude oil and commodity prices, cost reductions and efficiency improvements. CITIC’s power generation business won its first overseas new energy project, while the coal business recorded satisfactory performance as a result of the cut in excess coal capacity by the government of China. In Peru, the Las Bambas copper mine project, in which CITIC Metal Group holds a 15% interest, maintained stable production in 2017 leading to a large profit contribution.