XD Inc. — Capital/Financing Update 2021

May 6, 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.

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ANNOUNCEMENT ON EXECUTION OF ASSET MANAGEMENT CONTRACT REGARDING 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》 and the Proposal in relation to Management Measures on Employee Share Ownership Plan of Chongqing Iron & Steel Company Limited 《關於 < 重慶鋼鐵股份有限公司員工持股計劃管理辦 法 > 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 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.

At the first holders’ meeting of the fourth phase of employee share ownership plan of the Company held on 15 January 2021, the Constitution of the Meeting of the Holders of the Fourth Phase of the Employee Share Ownership Plan (《第四期員工持股計劃 持有人會議章程》), the Proposal in relation to the Establishment of the Management Committee of the Fourth Phase of Employee Share Ownership Plan and Authorisation to the Management Committee to be Responsible for the Management of the Employee Share Ownership Plan (《關於設立第四期員工持股計劃管理委員會並授權 管理委員會負責員工持股計劃管理事宜的議案》) and the Proposal in relation to the Election of the Members of the Management Committee of the Fourth Phase of the Employee Share Ownership Plan (《關於選舉第四期員工持股計劃管理委 員會委員的議案》) were considered and approved.

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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 and the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on 22 March 2018, 16 May 2018, 31 December 2020 and 16 January 2021, respectively.

On 30 April 2021, Chongqing Iron & Steel Company Limited (on behalf of the fourth phase of employee share ownership plan and as asset entrustor), Huatai Securities (Shanghai) Asset Management Co., Ltd. (as asset manager) and China Merchants Bank Co., Ltd., Suzhou Branch (as asset custodian) executed the Asset Management Contract between Huatai Asset Management and Chongqing Iron & Steel Regarding Employee Share Ownership Plan No. 4 Single Asset Management Plan (《華泰資管 重慶鋼鐵員工持股計劃 4 號單一資產管理計劃資產管理合同 )》 based on the principle of equality, voluntariness and good faith. The contract sets out detailed explanations and provisions on the condition and investment of the entrusted assets as well as the rights and obligations of the parties thereto. For details, please refer to the Asset Management Contract between Huatai Asset Management and Chongqing Iron & Steel Regarding Employee Share Ownership Plan No. 4 Single Asset Management Plan (Chinese version only) disclosed by the Company in the form of overseas regulatory announcement on the same date hereof.

The aforesaid contract does not constitute a notifiable transaction under Chapter 14 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and this announcement is made by the Company on a voluntary basis.

By order of the Board Chongqing Iron & Steel Company Limited Liu Jianrong Chairman

Chongqing, the PRC, 7 May 2021

As at the date of this announcement, the Directors of the Company are: Mr. Liu Jianrong (Executive Director), Mr. Zhang Wenxue (Executive Director), Mr. Tu Deling (Executive Director), Mr. Zou An (Executive Director), Mr. Song De An (Nonexecutive 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).

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