XD Inc. — Interim / Quarterly Report 2019

Apr 25, 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 QUARTER 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 ” or “ Chongqing Iron & Steel ”) hereby announces the operating data for the first quarter of 2019 (unaudited) as follows:

I. HIGHLIGHTS OF PRODUCTION AND OPERATION

1. In the first quarter, by surmounting various adverse effects, the Company managed to secure the supply of raw materials and fuels with significantly improved quality, and smooth production was realized as underpinned by the stable functioning of equipment. In the first quarter, the Company produced 1,479,800 tonnes of iron, 1,568,800 tonnes of steel and 1,491,000 tonnes of steel products, representing an increase of 137,100 tonnes, 78,400 tonnes and 71,600 tonnes, or 10.21%, 5.26% and 5.04% as compared with the same period of the previous year, respectively. The progressive target set in the annual plan was fulfilled.

2. In the first quarter, by proactively expanding selling and marketing channels, the Company made great effort to promote the implementation of direct sales, direct supply and direct distribution, enhance the quality of customer services and optimize its product portfolio in a continuous manner. In the first quarter, the sales volume of steels reached 1,502,700 tonnes, representing an increase of 123,300 tonnes or 8.98%, and the operating income was RMB5.308 billion, representing an increase of 3.02%, as compared with the same period of the previous year, both fulfilling the progressive target set in the annual plan.

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1. In the first quarter, by positively advancing cost reduction, the Company made new breakthroughs in benchmarking, identifying deficiency, exploring internal potentials, deepening analysis, making improvements and reducing procedure costs. Safety margin of costs was further elevated. In the first quarter, over 70% of the key technical and economic indicators at the company level outpaced the best data for three consecutive months of the previous year. All kinds of consumption witnessed noticeable decline, with procedure costs decreased by RMB140 million as compared with the same period of the previous year.

II. MAJOR FINANCIAL DATA

Unit: RMB’000

	As at		Changes from
	the end of	As at	the end of
	the reporting	the end of the	the previous
	period	previous year	year
			(%)
Total assets	26,414,800	26,933,351	-1.93
Net assets attributable to the
shareholders of the Company	18,688,295	18,531,665	0.85
		From the
		beginning of
	From the	the previous
	beginning	year to the
	of year to	end of the	Changes
	the end of	reporting	from the
	the reporting	period of the	same period
	period	previous year	last year
			(%)
Net cash flow from operating
activities	-138,559	-304,134	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	Changes
	end of the	reporting	from the
	reporting	period of the	same period
	period	previous year	last year
			(%)
Revenue from operations	5,307,920	5,152,412	3.02
Net profit attributable to the
shareholders of the Company	150,437	350,389	-57.07
Net profit attributable to the
shareholders of the Company
after extraordinary profit or
loss	128,191	353,865	-63.77
Return on net assets (weighted
average) (%)	0.81	2.07	-1.26
Basic earnings per share
(RMB per share)	0.02	0.04	-50.00
Diluted earnings per share
(RMB per share)	0.02	0.04	-50.00

Note: Net cash flow from operating activities for the quarter was negative, mainly due to the raised proportion of payment in cash by the Company for the purpose of reducing procurement costs and secure resources.

III. MAJOR PRODUCTS

Major productsProductionfrom Januaryto March 2019Sales fromJanuary toMarch 2019(0’000 tonnes) (0’000 tonnes)Medium and heavy sheets49.4749.20Hot rolling67.8671.24Rebar16.7214.11Profiles15.0515.72Total149.10150.27	Averagesellingprice fromJanuary toMarch 2019(excludingtaxes, RMBper tonne)3,4733,2803,5413,4613,387

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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 Meng Xiangyun Secretary to the Board

Chongqing, the PRC, 26 April 2019

As at the date of this announcement, the directors of the Company are: Mr. Zhou Zhuping (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) and Mr. Wong Chunwa (Independent Non-executive Director).

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