XD Inc. — Earnings Release 1999

Feb 29, 2000

Listed Company Information

CHONGQING IRON<1053> - Announcement Chongqing Iron and Steel Company Limited PROFIT WARNING The board of directors (the "Board") of Chongqing Iron and Steel Company Limited (the "Company") announces that the consolidated final results of the Company for year ended 31st December, 1999 is expected to record a loss for the reasons set out below. It is expected that the final results will be announced in late April, 2000. Investor should exercise caution when dealing in the shares of the Company. The Board announces that, based on the management accounts of the Company and its subsidiary (the "Group") for the 12 months ended 31st December, 1999, the Group is expected to record a loss for the year ended 31st December, 1999. It is expected that the consolidated final results will be announced in late April, 2000. Although the sales (in terms of the quantity of products sold) and the turnover of the Group for the year have increased compared to the corresponding period last year, operating profits have been severely affected by the substantial fall in the market price generally for iron and steel products/manufactured by the Group. At present, the financial position of the Company remains sound. Investor should exercise caution when dealing in the shares of the Company. By Order Of the Board Tang Min Wei Chairman Chongqing, China, 28th February, 2000