XD Inc. — Interim / Quarterly Report 2018

Oct 29, 2018

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 THE OPERATING DATA FOR THE THIRD QUARTER OF 2018

Pursuant to the relevant provisions of Article 25 of the “Guidelines on Industrial Information Disclosure of Listed Companies No. 9 – Iron and Steel” of the Shanghai Stock Exchange, Chongqing Iron & Steel Company Limited (the “ Company ” or “ Chongqing Iron & Steel ”) hereby announces the operating data for the third quarter of 2018 (unaudited) as follows:

I. HIGHLIGHTS OF PRODUCTION AND OPERATION

Since the beginning of 2018, the Company has been practicing the strategies of cost priority and leading manufacturing technologies in a proactive manner and has carried out each production and operating task in close compliance with the annual operating principle of “achieving full production and sales, low costs and high efficiency”. Meanwhile, it continuously promoted the smooth integration of production, supply and sale, and realised stable and smooth production, substantial improvement of cost effectiveness, and rapid growth of systematic capabilities, thus its production and operation entered a virtuous cycle. The cash flows of the Company during the period of January to September were significantly improved and the profitability was better than expected.

From January to September 2018, the Company manufactured 4,210,100 tonnes of iron, 4,750,600 tonnes of steel and 4,553,500 tonnes of steel products, representing an increase of 63.63%, 73.33% and 74.27%, respectively, as compared with the same period last year. The Company expected that its annual production of iron, steel and steel products would amount to 5,650,000 tonnes, 6,350,000 tonnes and 5,950,000 tonnes, respectively. Its revenue from operations, total profit and net profit amounted to RMB17,437 million, RMB1,481 million and RMB1,480 million respectively, marking a dramatic turnaround as compared with the huge loss of RMB882 million of the same period last year.

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In the third quarter, the production and sales volume of steel products amounted to 1,586,600 tonnes and 1,589,800 tonnes, increasing by 2.53% and 1.6% month on month as compared to the second quarter, respectively; revenue from operations and total profit amounted to RMB6,344 million and RMB718 million, increasing by 6.78% and 74.27% month on month as compared to the second quarter, respectively; the substantial increase in profit in the third quarter was mainly due to the energetic practice of the cost reduction plan and thorough promotion of meticulous cost management, resulting in prominent reduction of cost.

II. MAJOR FINANCIAL DATA

Unit: RMB’000

	As at the	As at the	Changes
	end of the	end of the	from the end
	reporting	previous	of the
	period	year	previous year
			(%)
Total assets	26,529,411	25,012,459	6.06
Net assets attributable to the shareholders
of the Company	18,218,615	16,730,115	8.90
Net assets per share (RMB/share)	2.04	1.88	8.42
Asset-liability ratio (%)	31.33	32.82	-4.54
		From the
		beginning of
	From the	the previous
	beginning of	year to the
	year to the	end of the
	end of the	reporting
	reporting	period of the	Changes
	period	previous year	from the
	(January to	(January to	same period
	September)	September)	last year
			(%)
Net cash flow from operating activities	439,134	-81,623	N/A

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			From the
			beginning of
		From the	the previous
		beginning of	year to the
		year to the	end of the
		end of the	reporting
		reporting	period of the	Changes
		period	previous year	from the
		(January to	(January to	same period
		September)	September)	last year
				(%)
	Revenue from operations	17,436,860	8,183,124	113.08
	Net profit attributable to the shareholders
	of the Company	1,480,017	-882,075	N/A
	Net profit attributable to the shareholders
	of the Company after extraordinary
	profit or loss	1,435,306	-936,187	N/A
	Return on net assets (weighted average)
	(%)	8.45	N/A	N/A
	Basic earnings per share
	(RMB per share)	0.166	-0.199	N/A
	Diluted earnings per share (RMB per
	share)	0.166	-0.199	N/A
III.	MAJOR PRODUCTS
				Average
		Production	Sales from	selling price
		from January	January to	from January
		to September	September	to September
	Major products	2018	2018	2018
		(0’000 tonnes)	(0’000 tonnes)	(RMB per tonne)
	Medium and heavy sheets	120.13	118.70	3,863
	Hot rolling	250.30	251.28	3,560
	Rebar	43.92	42.46	3,604
	Profiles	41.00	40.85	3,627
	Total	455.35	453.29	3,650

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The above operating data are unaudited. Investors are advised to pay attention to the investment risks and exercise caution when using such information.

By order of the Board Chongqing Iron & Steel Company Limited Yu Hong Secretary to the Board

Chongqing, the PRC, 30 October 2018

As at the date of this announcement, the Directors of the Company are: Mr. Zhou Zhuping (Non-executive Director), Mr. Zheng Jie (Non-executive Director), Mr. Li Yongxiang (Executive Director), Mr. Tu Deling (Executive Director), Mr. Zhang Shuogong (Executive Director), Mr. Xu Yixiang (Independent Non-executive Director), Mr. Xin Qingquan (Independent Non-executive Director), Mr. Wong Chunwa (Independent Non-executive Director) and Mr. Zheng Yuchun (Independent Non-executive Director).

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