Lean Management 
Consolidating the fundamental management of the headquarters
Focusing on revenue increase and expenditure reduction around financial statements. We have improved our profitability with focus on our main business on the revenue side, continuously improving asset operational efficiency and strengthening fund settlement management. On the cost side, we continued to deepen all-factor cost reduction and efficiency enhancement, taking targeted measures for weak links to achieve a simultaneous year-on-year decrease in both the cost-to-income ratio and total expenses. We also accelerated the standardisation of the chart of accounts to establish multi-dimensional alignment in our accounting system to further strengthen the consolidated reporting and penetrating oversight.
Improving the refined institutional management. By adopting an urgency-based modular design in the system planning, we successfully deployed Phase One of CITIC Management Information System, which focused on bolstering the completeness, accuracy and timeliness of enterprise data through business registration data validation, field logic controls and human verification. The CMIS enables real-time monitoring of our subsidiaries to track the progress of the “slimming and fitness” (divestment and restructuring) programme, laying the foundation for full lifecycle management of institutional information.
Comprehensive improvement in procurement management. We have strengthened the procurement management system, established key procurement data metrics and enhanced oversight. We have also tightened control over single-source procurement and improved information transparency, significantly increasing the share of open procurement across the company.
Deepening capital and financial management of financial subsidiaries
Strengthening the exploration of existing capital potential and forward-looking planning. We enriched indicator settings and refined scoring standards, pushing financial subsidiaries to optimise holistic and granular capital management framework through a “one-company-one-policy” approach. Anchored in existing capital, we launched a campaign to tackle high capital consumption, channelling resources towards low-consumption, high-return areas and achieving RMB11.2 billion in capital conservation. Additionally, we advanced the compilation of the “15th Five-Year” capital plan to coordinate future capital demand, allocation, replenishment and management.
Improving the comprehensive financial analysis system to boost revenue and reduce costs. We improved the on-and-off-balance-sheet benchmarking system for comprehensive finance integrated with business and finance. By deepening performance benchmarking for financial subsidiaries and analysis of business development in key regions, it better served management decision-making.
Intensifying governance across industrial subsidiaries
Rigorously enforcing the principle of “control is essential for subsidiaries, exercising of rights is essential for equity participation. We improved corporate governance and the authorisation system. Guidance for the management of appointed directors were issued to encourage their deep involvement in the board decisions of subsidiaries and to strictly regulate the process of exercising rights.
Optimising investment decision-making. We leveraged the CITIC Think Tank to enhance the professionalism of investment decisions. We strengthened the full lifecycle management of investment projects, updated the mandate of subsidiaries and began post-investment evaluations of overseas projects.
Optimising resource allocation. We steadily advanced internal asset integration and adjustment plans, optimising management mechanisms for larger companies such as CITIC Pacific Special Steel, CITIC Pacific Energy, and Sino Iron. By focusing on primary responsibilities and core businesses while continuing “slimming and fitness” efforts, we overachieved in reducing corporate hierarchies, the number of legal entities and exposure to discrete sectors.
Optimising risk assessment mechanisms. We implemented “look-through” comprehensive risk governance for industrial sectors, deploying management tools—such as risk reports, risk profile views, key risk indicators, and comprehensive risk management ledgers—down to the bottom.
Strengthening financing management. We advanced a significant reduction in financing costs for non-financial businesses, achieving a decline that was notably greater than the downward trend of market interest rates over the same period.
Focusing on revenue increase and expenditure reduction around financial statements. We have improved our profitability with focus on our main business on the revenue side, continuously improving asset operational efficiency and strengthening fund settlement management. On the cost side, we continued to deepen all-factor cost reduction and efficiency enhancement, taking targeted measures for weak links to achieve a simultaneous year-on-year decrease in both the cost-to-income ratio and total expenses. We also accelerated the standardisation of the chart of accounts to establish multi-dimensional alignment in our accounting system to further strengthen the consolidated reporting and penetrating oversight.
Improving the refined institutional management. By adopting an urgency-based modular design in the system planning, we successfully deployed Phase One of CITIC Management Information System, which focused on bolstering the completeness, accuracy and timeliness of enterprise data through business registration data validation, field logic controls and human verification. The CMIS enables real-time monitoring of our subsidiaries to track the progress of the “slimming and fitness” (divestment and restructuring) programme, laying the foundation for full lifecycle management of institutional information.
Comprehensive improvement in procurement management. We have strengthened the procurement management system, established key procurement data metrics and enhanced oversight. We have also tightened control over single-source procurement and improved information transparency, significantly increasing the share of open procurement across the company.
Deepening capital and financial management of financial subsidiaries
Strengthening the exploration of existing capital potential and forward-looking planning. We enriched indicator settings and refined scoring standards, pushing financial subsidiaries to optimise holistic and granular capital management framework through a “one-company-one-policy” approach. Anchored in existing capital, we launched a campaign to tackle high capital consumption, channelling resources towards low-consumption, high-return areas and achieving RMB11.2 billion in capital conservation. Additionally, we advanced the compilation of the “15th Five-Year” capital plan to coordinate future capital demand, allocation, replenishment and management.
Improving the comprehensive financial analysis system to boost revenue and reduce costs. We improved the on-and-off-balance-sheet benchmarking system for comprehensive finance integrated with business and finance. By deepening performance benchmarking for financial subsidiaries and analysis of business development in key regions, it better served management decision-making.
Intensifying governance across industrial subsidiaries
Rigorously enforcing the principle of “control is essential for subsidiaries, exercising of rights is essential for equity participation. We improved corporate governance and the authorisation system. Guidance for the management of appointed directors were issued to encourage their deep involvement in the board decisions of subsidiaries and to strictly regulate the process of exercising rights.
Optimising investment decision-making. We leveraged the CITIC Think Tank to enhance the professionalism of investment decisions. We strengthened the full lifecycle management of investment projects, updated the mandate of subsidiaries and began post-investment evaluations of overseas projects.
Optimising resource allocation. We steadily advanced internal asset integration and adjustment plans, optimising management mechanisms for larger companies such as CITIC Pacific Special Steel, CITIC Pacific Energy, and Sino Iron. By focusing on primary responsibilities and core businesses while continuing “slimming and fitness” efforts, we overachieved in reducing corporate hierarchies, the number of legal entities and exposure to discrete sectors.
Optimising risk assessment mechanisms. We implemented “look-through” comprehensive risk governance for industrial sectors, deploying management tools—such as risk reports, risk profile views, key risk indicators, and comprehensive risk management ledgers—down to the bottom.
Strengthening financing management. We advanced a significant reduction in financing costs for non-financial businesses, achieving a decline that was notably greater than the downward trend of market interest rates over the same period.