To better capitalise on the advantages of operating both financial and non-financial businesses, we have optimised our business portfolio into five strategic segments for enhanced alignment and a sharpened focus.
Our comprehensive financial services segment aims to become a leader in integration, guided by the principle of “one CITIC, one account” and the objective to provide seamless services across banking, securities, trust and insurance. This segment recorded a profit of HK$43.5 billion, an increase of 1.6% from 2019 as each business managed unique challenges. CITIC Bank’s profit was up 2%, while CITIC-Prudential Life outperformed the market with earnings growth of 40%. CITIC Securities and CITIC Trust maintained their market leading positions. To facilitate deeper connectivity and collaboration, we will establish a financial holding company, enabling us to better leverage information and technology, effectively prevent and control risks and provide more robust financial solutions for the real economy. This, in turn, will strengthen each of our individual businesses. We will continue to provide full support to CITIC Bank as it strives to become a premier joint-stock bank driven by technology. Our security and trust companies will also be positioned for continued industry leadership, while our insurance business will benefit from additional resources as a new driver of profit growth.
In 2020, the advanced intelligent manufacturing segment realised a net profit of HK$450 million, a decrease of 60% year-on-year, primarily due to our reduced shareholding in CITIC Dicastal as well as a loss recorded at the company’s KSM production facility in Germany. During the year, CITIC Dicastal focused on expanding its domestic business to supplement international sales, which helped increase sales of aluminium wheels and castings by 17% and 19%, respectively, in the second half of 2020. Profit at CITIC Heavy Industries increased 67%, with solid performance in its heavy machinery business. New orders reached RMB10 billion, up by 48% year-onyear, a historical record. Looking ahead, we are positioning the businesses in this segment to become pioneers in smart manufacturing, able to deliver operational breakthroughs in critical technologies, such as specialty robotics, industrial software and microchips. Today, we are a leader in the production of lightweight auto parts, but we aim to build on our solid market position and transition from single components to modular and integrated manufacturing. As vehicle technology advances, we will explore opportunities in new energy vehicle manufacturing and the development of smart car solutions. Our special-purpose robots are currently used in firefighting and we will endeavour to extend these capabilities in support of emergency rescue, mining and underwater operations.
In 2020, the advanced materials segment realised a net profit of HK$10.1 billion, an increase of 28% year-on-year, driven by favourable commodity prices and the solid performance of CITIC Pacific Special Steel. Profit at our Sino Iron project grew substantially to HK$3.4 billion, reflecting the strong price of iron ore as well as enhanced operating efficiency and cost management. Profit at CITIC Metal increased by 80%. At CITIC Pacific Special Steel, the rapid adjustment of operating strategies led to an increase in sales volume and profit growth of 12%. In our specialty raw materials businesses, we will continue to leverage CITIC’s investment in mineral resources such as iron ore, copper and aluminium to further develop our commodity trading operations and contribute to the stability of domestic supply chains. In special new materials, we will promote integration and broaden our competitive strengths with continued innovation in key technologies. This segment, together with advanced intelligent manufacturing, will establish advantageous vertical industrial value chains.
Driven by the principle of putting customers first, our new consumption segment will embrace opportunities catalysed by the increase in domestic digital and lifestyle consumption. In 2020, this segment realised a net profit of HK$890 million, a decline of 21% year-on-year, mainly reflecting our divestment of 22% of the McDonald’s China business as well as the operational impact of the pandemic. Our publishing business, CITIC Press, achieved 12% growth in profit by quickly deploying resources to strengthen online channels. Our telecommunications business remained steady and generated stable cash flow, while the agricultural seeds business delivered a turnaround profit, realising the value of this investment. As part of our development strategy, we will continue to explore opportunities created by the transition to 5G technology, trends in the digital, cultural, lifestyle and agricultural industries. Big data, collected through our many consumer touchpoints, will empower us to serve our customers holistically and facilitate further business expansion.
In the new-type urbanisation segment, we are positioning ourselves as builders of smart cities. In 2020, this segment realised a profit of HK$9.4 billion, an increase of 17% over 2019, when an impairment was made on our equity investment in China Overseas Land and Investment. Our property business achieved 50% growth in profit while earnings from the engineering and construction business were heavily affected by the pandemic, resulting in a 10% decline in profit. However, project activities in China resumed quickly, and in the second half of 2020 profit increased by 7% against the same period in 2019. Other urban operations businesses such as water treatment and aviation services also made positive contributions. In the years ahead, we will continue to implement China’s regional development strategies by focusing on the Beijing and Tianjin municipalities, Hebei province, the Guangdong-Hong Kong-Macau Greater Bay Area, the Yangtze River Delta, and the ChengduChongqing economic circle, providing smart-city solutions that integrate engineering contracting, wastewater treatment, and property development and operation. We will also invest additional resources in the healthcare industry to promote longer, healthier living.
Our five business segments create a virtuous circle. The production-oriented segments, advanced intelligent manufacturing and advanced materials, serve to stabilise the industrial value chain and strengthen our reputation as a manufacturer. In our consumer-focused segments, new consumption and new-type urbanisation, we will establish CITIC as a trusted consumer brand that is data-driven and service-oriented. At the same time, our comprehensive financial services segment supports the other four segments with financial resources and a wide, well-established customer base.
