XD Inc. — Capital/Financing Update 2021

Aug 4, 2021

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.

==> picture [399 x 63] intentionally omitted <==

ANNOUNCEMENT ON COMPLETION OF SHARE PURCHASE OF THE FOURTH PHASE OF EMPLOYEE SHARE OWNERSHIP PLAN

At the 15[th] meeting of the seventh session of the board of directors and the 18[th ] meeting of the seventh session of the supervisory committee held on 20 March 2018, and the 2017 annual general meeting held on 15 May 2018 of Chongqing Iron & Steel Company Limited (the “ Company ”), the proposals including the Proposal in relation to the Employee Share Ownership Plan (draft) from 2018 to 2020 of Chongqing Iron & Steel Company Limited and its Summary (《關於〈重慶鋼鐵股份有限公司 2018 年至 2020 年員工持股計劃（草案 )〉及其摘要的議案》) were considered and approved. At the 31[st] meeting of the eighth session of the board of directors and the 20[th] meeting of the eighth session of the supervisory committee of the Company held on 30 December 2020, the Proposal in relation to the Fourth Phase of Employee Share Ownership Plan and Adjustment to the Way of Distribution of Rights and Interests under the First, Second and Third Phases of Employee Share Ownership Plan (《關於 公司第四期員工持股計劃及調整第一、二、三期員工持股計劃權益分 配方式的議案》) was considered and approved. For details of the above-mentioned matters, please refer to the relevant announcements of the Company published on the China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily, the website of the Shanghai Stock Exchange (http://www.sse.com.cn) and the website of the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 22 March 2018, 16 May 2018 and 31 December 2020, respectively.

Pursuant to the requirements under the Guiding Opinions on the Implementation of the Pilot Program on Employee Share Ownership Plans by Listed Companies (《關於 上市公司實施員工持股計劃試點的指導意見》) and the Guideline Notes on Information Disclosure in relation to the Employee Share Ownership Plans of Listed Companies on Shanghai Stock Exchange (《上海證券交易所上市公司員工持 股計劃信息披露工作指引》), the Company hereby announces the progress of implementation of the fourth phase of employee share ownership plan as follows:

– 1 –

As of this date, according to the “Single Asset Management Plan of Huatai Asset Management for Employee Share Ownership Plan No. 4 of Chongqing Iron & Steel ( 華泰資管重慶鋼鐵員工持股計劃 4 號單一資產管理計劃 )”, an aggregate of 9,061,800 A shares of the Company, representing approximately 0.102% of the total share capital of the Company, have been purchased by way of centralized bidding in the secondary market at an average transaction price of approximately RMB3.131 per share for the fourth phase of employee share ownership plan, and the aggregate transaction amount was approximately RMB28,372,606.80.

36,662,200 A shares of the Company held by its securities account designated for share repurchase, representing approximately 0.411% of its total share capital, were transferred to the respective securities account designated for the fourth phase of employee share ownership plan of the Company by non-transaction transfer on 3 August 2021, at a transfer price of RMB1.800 per share.

As of this date, the Company has completed the share purchase and non-transaction transfer for the fourth phase of employee share ownership plan, the fourth phase of employee share ownership plan of the Company held a total of 45,724,000 shares of the Company, representing 0.513% of the total share capital of the Company. The shares held for the share ownership plan shall be subject to a lock-up period commencing from 3 August 2021 to 2 August 2022 according to the regulations.

The Company will fulfill its subsequent obligations on information disclosure in a timely manner in strict accordance with the relevant laws and regulations.

By order of the Board Chongqing Iron & Steel Company Limited Zou An Secretary to the Board

Chongqing, the PRC, 5 August 2021

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

– 2 –