XD Inc. — Interim / Quarterly Report 2019

Aug 11, 2019

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 FIRST HALF OF 2019

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 ”) hereby announces the operating data for the first half of 2019 (reporting period) (unaudited) as follows:

I. HIGHLIGHTS OF PRODUCTION AND OPERATION

2019 is a crucial year for the Company to embark on a new journey towards sustainable and high-quality development as well as a year for consolidating foundations, improving management and advancing development. The Company actively implemented the strategies highlighting “cost and manufacturing technology leadership” and continuously carried out the operation principle of “achieving full production and sales, low cost and high efficiency”. In response to the declining sales price of steel, the soaring prices of iron ores and other adverse circumstances, it implemented the problems-oriented and reform-driven approaches to solidify the foundation, improve the system, enhance the capability and drive business development. It vigorously promoted cost reduction and continuously conducted targeted benchmarking to bridge the gaps, and effectively leveraged the coordinated support of China Baowu Steel Group. With the joint efforts of all employees, in the first half of the year, the Company maintained stable and smooth production operations, with production and sales hitting record high, resource consumption decreasing significantly, new breakthroughs made in building low-cost manufacturing capacity, and competitiveness further enhanced.

In the first half of 2019, the Company realised iron, steel and steel products production of 2,984,200 tonnes, 3,250,600 tonnes and 3,097,200 tonnes respectively, representing an increase of 199,700 tonnes, 150,500 tonnes and 130,300 tonnes, respectively, as compared to the same period last year; sales of steel products of 3,132,200 tonnes, representing a year-on-year increase of 188,700 tonnes, hitting historical records.

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II. MAJOR FINANCIAL DATA

Unit: RMB’000

II.	II.	MAJOR FINANCIAL DATA	MAJOR FINANCIAL DATA
TNN				Unit: RMB’000
	TNN	At ttheotal assets2et assets attributable toshareholders of the Company1R(Jet cash flow from operatingactivitiesti i1	At tthe2butable toof the Company1R	he end ofreportingperiodAt the end oflast yearChange fromthe end oflast yearcomparedto the end ofthe reportingperiod(%)6,486,55726,933,351-1.669,093,68318,531,6653.03eportingperiodChangefrom the
				anuary toJune)Same periodlast yearsame periodlast year(%)88,417-1,301,188N/A148356011092899352
	perang ncome,,,,.Net profit attributable toshareholders of the Company615,728761,960-19.19Net profit attributable toshareholders of the Company afterextraordinary gains and losses589,097736,096-19.97Weighted average return on netassets (%)3.274.45Decreasedby 1.18percentagepointsBasic earnings per share(RMB per share)0.070.09-22.22Diluted earnings per share(RMB per share)0.070.09-22.22

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III. MAJOR PRODUCTS

Major productsProductionfrom Januaryto June 2019(0’000tonnes)Medium plate97.46Hot rolling149.35Bars31.89Profiles31.02Total309.72	Sales fromJanuary toJune 2019Averageselling pricefrom Januaryto June 2019(0’000tonnes)(excludingtaxes, RMBper tonne)97.793,622152.223,38931.223,65931.993,599313.223,510

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 Meng Xiangyun Secretary to the Board

Chongqing, the PRC, 12 August 2019

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

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