www.cs.ecitic.com IMPORTANT NOTICE The Board and the Supervisory Committee and the Directors, Supervisors and Senior Management warrant the truthfulness, accuracy and completeness of contents of this report and that there is no false representation, misleading statement contained herein or material omission from this report, for which they will assume joint and several liabilities. This results announcement was considered and approved at the 22th meeting of the Sixth Session of the Board. All Directors attended this meeting of the Board. No Director raised any objection to this report. The Company’s domestic and international fi nancial statements for the year were audited by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers Hong Kong, respectively. Auditor’s reports with unqualifi ed audit opinions were issued accordingly. Mr. ZHANG Youjun, head of the Company, Mr. GE Xiaobo, the Chief Financial Offi cer, and Ms. KANG Jiang, head of the Company’s accounting department, warrant that the fi nancial statements set out in this report are true, accurate and complete. The Company’s 2017 profi t distribution plan as considered and approved by the Board is to distribute a cash dividend of RMB4.00 (tax inclusive) for every 10 shares. This proposal is subject to the approval of the general meeting of the Company. Forward looking statements, including future plans and development strategies, contained in this report do not constitute a substantive commitment to investors by the Company. Investors should be aware of investment risks. There was no appropriation of funds of the Company by controlling Shareholder(s) or its/their related parties for non-operating purposes. The Company had made no guarantee to external parties against the stipulated decision-making process. The Company prepared this report in both English and Chinese versions. In the event of any discrepancies between the English version and the Chinese version, the Chinese version shall prevail. Contents Contents Defi nitions 2 Material Risk Factors 6 Company Information 7 Financial Summary 18 Chairman’s Statement 23 Management Discussion and 25 Analysis Report of the Board 71 Signifi cant Events 81 Changes in Share Capital and 104 Information on Substantial Shareholders Directors, Supervisors, Senior 112 Management and Employees Corporate Governance Report 133 Environmental, Social and 167 Governance Report Independent Auditor’s Report and 184 Notes to Financial Statements Documents Available for Inspection 314 Appendix 1: Organization Chart 315 Appendix 2: Index of Information 316 Disclosure Defi nitions Unless the context otherwise requires, the following expressions have the following meanings in this report: “A Shareholder(s)” holder(s) of A Shares “A Share(s)” the domestic share(s) in the ordinary share capital of the Company with a nominal value of RMB1.00 each, which are listed on the Shanghai Stock Exchange (stock code: 600030) “Board” the board of directors of the Company “China AMC” China Asset Management Company Limited (華夏基金管理有限公司) “China CITIC Bank” China CITIC Bank Corporation Limited (中信銀行股份有限公司) “CITIC Buyout Fund” CITIC Buyout Fund Management Co., Ltd. (中信併購基金管理有限公司) “CLSA” the brand name of the offshore business of the Company “CITIC Corporation Limited” CITIC Corporation Limited (中國中信有限公司) “CITIC Futures” CITIC Futures Company Limited (中信期貨有限公司) “CITIC Global Trade” CITIC Global Trade (Shanghai) Co., Ltd. (中信寰球商貿（上海）有限公司) “CITIC Group” CITIC Group Corporation (中國中信集團有限公司) “CITIC Holdings” CITIC Holdings Limited (中信控股有限責任公司) “CITIC Limited” CITIC Limited (中國中信股份有限公司) “CITIC Pacifi c” CITIC Pacifi c Limited (中信泰富有限公司) “CITIC PE Fund” CITIC Private Equity Funds Management Company Limited (中信產業投資基金管 理有限公司) “CITIC Real Estate” CITIC Real Estate Co., Ltd (中信房地產股份有限公司) “CITIC Securities (Shandong)” CITIC Securities (Shandong) Co., Ltd. (中信証券（山東）有限責任公司) “CITIC Securities Finance 2013” CITIC Securities Finance 2013 Co., Ltd. (中信証券財務2013有限公司) “CITIC Securities Finance MTN” CITIC Securities Finance MTN Co., Ltd. 02 “CITIC Securities Investment” CITIC Securities Investment Limited (中信証券投資有限公司) “CITIC Trust” CITIC Trust Co., Ltd. (中信信託有限責任公司) “CLSA B.V.” Crédit Agricole Securities Asia B.V., a private limited company incorporated under the laws of the Netherlands and becoming a wholly-owned subsidiary of CSI on 31 July 2013 “Company” or “CITIC Securities” CITIC Securities Company Limited (中信証券股份有限公司) “Company Law” the Company Law of the People’s Republic of China “connected transaction(s)” has the meaning ascribed to it under the Hong Kong Listing Rules currently in effect and as amended from time to time “CSDCC” China Securities Depository and Clearing Corporation Limited “CSI” CITIC Securities International Co., Ltd. (中信証券國際有限公司) “CSRC” China Securities Regulatory Commission “Director(s)” the director(s) of the Company “GoldStone Fund” CITIC GoldStone Fund Management Company Limited (中信金石基金管理有限公司) “GoldStone Investment” GoldStone Investment Co., Ltd. (金石投資有限公司) “GoldStone Zexin” GoldStone Zexin Investment Management Co., Ltd. (金石澤信投資管理有限公司) “Group” CITIC Securities Company Limited and its subsidiaries “H Shareholder(s)” holder(s) of H Shares “H Share(s)” the overseas-listed foreign share(s) in the ordinary share capital of the Company with a nominal value of RMB1.00 each, which are listed on the Stock Exchange of Hong Kong Limited (stock code: 6030) “HKEx” Hong Kong Exchanges and Clearing Limited “Hong Kong Listing Rules” Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited CITIC Securities Company Limited 2017 Annual Report 03 Defi nitions “Jiantou Zhongxin” Jiantou Zhongxin Asset Management Co., Ltd. (建投中信資產管理有限責任公司) “Jindingxin Microfi nance” Qingdao Jindingxin Microfi nance Company Limited (青島金鼎信小額貸款股份有限公司) “Kington Securities” Kington Securities Limited Liability Company (金通證券有限責任公司) “Ministry of Finance” the Ministry of Finance of the People’s Republic of China “NSSF” National Council for Social Security Fund of the People’s Republic of China “PwC” PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers “PwC Hong Kong” PricewaterhouseCoopers “PwC Zhong Tian” PricewaterhouseCoopers Zhong Tian LLP “related party transaction(s)” for the purpose of Section 6 “Signifi cant Events” and Section 9 “Corporate Governance Report” only, has the meaning ascribed to it under the SSE Listing Rules currently in effect and as amended from time to time, unless otherwise stated “Reporting Period” the twelve months ended 31 December 2017 “SAC” Securities Association of China “SAIC” the State Administration for Industry & Commerce of the People’s Republic of China “Securities Law” the Securities Law of the People’s Republic of China “Senior Management” the senior management of the Company “SFC” the Securities and Futures Commission of Hong Kong “Shanghai Clearing House” Interbank Market Clearing House Co., Ltd. “Share(s)” A Share(s) and H Share(s) “Shareholder(s)” holder(s) of the domestic share(s) or the overseas-listed foreign share(s) in the ordinary share capital of the Company with a nominal value of RMB1.00 each, which are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively 04 “Shenzhen Bureau of the CSRC” the Shenzhen Securities Regulatory Bureau of the CSRC “SME” small and medium-sized enterprise “SOE” state-owned enterprise “SSE” Shanghai Stock Exchange “SSE Listing Rules” Rules Governing the Listing of Stocks on Shanghai Stock Exchange “Supervisor(s)” the supervisor(s) of the Company “Supervisory Committee” the supervisory committee of the Company “SZSE” Shenzhen Stock Exchange “Tianjin Jingzheng” Tianjin Jingzheng Property Services Limited (天津京證物業服務有限公司) “Tianjin Shenzhen” Tianjin Shenzhen Property Services Limited (天津深證物業服務有限公司) “Wind Info” Wind Information Co., Ltd. “Xiamen Cross-strait Equity Exchange” Xiamen Cross-strait Equity Exchange Co, Ltd. CITIC Securities Company Limited 2017 Annual Report 05 Material Risk Factors The Group’s business is highly dependent on the macroeconomic and market conditions of China and other areas in which the Company operates its business. Therefore, fl uctuation in the Chinese and international capital markets will have material impact on the operating results of the Group. The major risks exposed to by the Group mainly: legal and compliance risk caused by possible failure of the business management and standards to align in a timely manner with changes in national laws and the regulations and rules promulgated by the regulatory authorities; strategic risk where the Group may not be able to determine the strategic plan in response to the profound changes in the domestic and overseas capital markets; internal operations and management risks arising from the transformation of the Company’s business model and the emergence of new businesses and new technologies; market risk that may arise from the fl uctuating market price of the securities held by the Group; credit risk that may arise from the default of its borrower or trading counterparty; liquidity risk where the Group may encounter a shortage of fund in fulfi llment of payment obligations; operational risk that may arise from the negligence or omission of the internal process management, information system failure or personnel misconduct; risks such as currency exchange risk that may arise from the operation of international businesses and fi nancial innovative businesses. In particular, credit risk and liquidity risk are the major risks