XD Inc. — Capital/Financing Update 2020

Dec 30, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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FURTHER ANNOUNCEMENT ON EMPLOYEE SHARE OWNERSHIP PLAN

References are made to the circular (the “ Circular ”) published by Chongqing Iron & Steel Company Limited (the “ Company ”) on 25 April 2018 regarding, inter alia, the proposed adoption of the Employee Share Ownership Plan and the further announcements on Employee Share Ownership Plan dated 20 December 2018 and 28 December 2019, respectively. Unless otherwise defined in this announcement, capitalised terms used in this announcement shall have the same meaning as those defined in the Circular.

According to the resolution in relation to the Incentive Framework Plan for Senior Management of Chongqing Iron & Steel Company Limited approved by the Board on 20 March 2018, the resolution in relation to the Employee Share Ownership Plan from 2018 to 2020 of Chongqing Iron & Steel Company Limited and its summary approved at the 2017 annual general meeting on 15 May 2018 and the Resolution in relation to the Fourth Phase of the Employee Share Ownership Plan and Adjustment to Method for Equity Interest Allocation of the First, Second and Third Phases of the Employee Share Ownership Plan approved by the Board on 30 December 2020 and as resolved at the 31st meeting of the eighth session of the Board, the Company intends to implement the Fourth Phase of the Employee Share Ownership Plan (the “ Fourth Phase of the Employee Share Ownership Plan ”).

The source of funds for the Fourth Phase of the Employee Share Ownership Plan is the bonus fund withdrawn by the Company and the provision is made at 12.5% of the total profit (before the withdrawal of the bonus fund) under the audited consolidated statements of the Company for 2020.

The source of shares for the Fourth Phase of the Employee Share Ownership Plan is the ordinary A shares of the Company to be acquired from the secondary market or obtained through other means as allowed by the laws and regulations.

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The personnel entitled to the Fourth Phase of the Employee Share Ownership Plan include directors, supervisors, senior management, core management, core technical personnel and core business personnel of the Company, which shall not exceed 127 persons in total. 10 of them are directors, supervisors and senior management, who are given a share of 44.6% in aggregate out of the entire share under the Fourth Phase of the Employee Share Ownership Plan. The other holders are given a share of 55.4% out of the entire share under the Fourth Phase of the Employee Share Ownership Plan. The management committee of the Employee Share Ownership Plan may adjust the interests of the holders during the term based on the changes in and assessment of the employees.

When the lock-up period of the current phase of the employee share ownership plan expires and before the term expires, the management committee, as authorised by the holders’ meeting, will dispose of the underlying shares held under the employee share ownership plan or transfer the shares held under the employee share ownership plan to the employees‘ personal securities accounts by non-transaction transfer upon payment of relevant taxes and fees (if any).

For details, please refer to the full text of the Fourth Phase of the Employee Share Ownership Plan (Chinese version only) published by the Company on the websites of the Shanghai Stock Exchange (www.sse.com.cn) and the Stock Exchange of Hong Kong Limited (www.hkexnews.hk) on the same date.

By order of the Board Chongqing Iron & Steel Company Limited Meng Xiangyun Secretary to the Board

Chongqing, the PRC, 31 December 2020

As at the date of this announcement, the Directors of the Company are: Mr. Liu Jianrong (Executive Director), Mr. Tu Deling (Executive Director), Mr. Zou An (Executive Director), Mr. Song De An (Non-executive Director), Mr. Zhou Ping (Nonexecutive Director), Mr. Xin Qingquan (Independent Non-executive Director), Mr. Xu Yixiang (Independent Non-executive Director) and Mr. Wong Chunwa (Independent Non-executive Director).

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