XD Inc. — Earnings Release 2021

Jul 14, 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 ESTIMATED GROWTH IN THE INTERIM RESULTS OF 2021

This announcement is made by Chongqing Iron & Steel Company Limited (the “ Company ”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Important note:

• The net profit attributable to the shareholders of the listed company in the first half of 2021 is expected to increase by approximately RMB2.576 billion, representing a year-on-year increase of approximately 2,122.70%.

• The net profit excluding non-recurring gains or losses attributable to shareholders of the listed company in the first half of 2021 is expected to increase by approximately RMB2.727 billion, representing a year-on-year increase of approximately 2,529.85%.

I. ESTIMATED RESULTS DURING THE PERIOD

(I) Estimated results period

1 January 2021 to 30 June 2021.

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(II) Estimated results

1. Based on a preliminary estimate by the finance department, the Company expects that the net profit attributable to the shareholders of the listed company in the first half of 2021 will increase by approximately RMB2.576 billion compared with that of the corresponding period of the previous year (statutory disclosure), representing a year-on-year increase of approximately 2,122.70%.

2. Based on a preliminary estimate by the finance department, the Company expects that the net profit excluding non-recurring gains or losses attributable to the shareholders of the listed company in the first half of 2021 will increase by approximately RMB2.727 billion compared with that of the corresponding period of the previous year (statutory disclosure), representing a year-on-year increase of approximately 2,529.85%.

• (III) The estimated results have not been audited by auditors.

II. RESULTS FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR

• (I) Net profit attributable to the shareholders of the listed company: RMB121.355 million. Net profit excluding non-recurring gains or losses attributable to the shareholders of the listed company: RMB107.793 million.

(II) Earnings per share: RMB0.01.

III. MAIN REASONS FOR THE ESTIMATED GROWTH IN RESULTS DURING THE PERIOD

In the first half of 2021, the Company proactively and comprehensively identified differences with benchmark enterprises, paid close attention to reducing costs and increasing efficiency, reduced the process costs precisely aligned to that of the excellent enterprises, constantly improved the technical and economic indicators, aimed at the market gaps of the purchase and sales, continuously strengthened the purchase system and optimized the marketing model, and therefore achieved steady improvement in production and sales efficiency with continuous improvement in production and operation, resulting in significant year-on-year increase in the net profit attributable to shareholders of the listed company.

IV. RISK DISCLOSURE

There are no material uncertainties in the Company that will affect the accuracy of the estimated results.

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V. OTHER MATTERS

The foregoing estimated data is a preliminary review only. For the detailed and accurate financial data, please refer to the 2021 interim report to be formally disclosed by the Company. Investors are advised to make decision with prudence and pay attention to the investment risks.

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

Chongqing, the PRC, 15 July 2021

As at the date of this announcement, the Directors of the Company are Mr. Zhang Wenxue (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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