XD Inc. - Interim / Quarterly Report 2020

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.

==> picture [478 x 64] intentionally omitted <==

UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020

I IMPORTANT

1.1 This summary of the Interim Report is extracted from the full text of the Interim Report. To fully understand the operating results, financial position and future development plans of Chongqing Iron & Steel Company Limited (the “ Company ”), investors are advised to read carefully the full text of the Interim Report which has also been published on the websites designated by the CSRC including the website of the Shanghai Stock Exchange for details.
1.2 The board of directors (the “ Board ”), the supervisory committee and directors, supervisors and senior executives of the Company guarantee that the contents of the Interim Report are true, accurate and complete, without false representations, misleading statements or material omissions, and assume several and joint responsibility in respect thereof.
1.3 All directors of the Company attended the Board meeting.
1.4 The Interim Report is unaudited.
1.5 The profit distribution proposal or proposal to transfer capital reserve to share capital for the reporting period as considered by the Board

Nil

– 1 –

II BASIC INFORMATION ON THE COMPANY

2.1 Company Information

Stock Profile

Stock abbreviation Place of Abbreviated before Class listing name Stock code adjustment A shares Shanghai Stock Chongqing 601005 N/A Exchange Iron & Steel H shares The Stock Chongqing 01053 N/A Exchange of Iron Hong Kong Limited

Contact Securities affairs information Secretary to the Board representative Name Meng Xiangyun Peng Guoju Tel 86–23–6898 3482 86–23–6898 3482 Correspondence No. 2 Jiangnan Avenue, No. 2 Jiangnan Avenue, address Jiangnan Street, Jiangnan Street, Changshou District, Changshou District, Chongqing, the PRC Chongqing, the PRC E-mail [email protected] [email protected]

– 2 –

2.2 Major financial data of the Company

Unit: RMB’000

			Change from
	At the end		the end of last
	of the		year to the end
	Reporting	At the end	of the Reporting
	Period	of last year	Period
			(%)
Total assets	28,611,251	26,975,726	6.06
Net assets attributable
to shareholders of the
Company	19,520,184	19,396,003	0.64
	Reporting
	Period
	(January to	Corresponding	Year-on-year
	June)	period last year	change
			(%)
Net cash flow from operating
activities	82,586	88,417	-6.59
Revenue	10,927,367	11,483,560	-4.84
Net profit attributable
to shareholders of the
Company	121,355	615,728	-80.29
Net profit attributable
to shareholders of the
Company after non-
recurring items	107,793	589,097	-81.70
			Down by
Weighted average return on			2.65 percentage
net assets (%)	0.62	3.27	points
Basic earnings per share
(RMB per share)	0.01	0.07	-85.71
Diluted earnings per share
(RMB per share)	0.01	0.07	-85.71

– 3 –

2.3 Shareholdings of top ten shareholders

Unit: shares

Total number of shareholders as of the end of the reporting period (account) 145,157 Total number of preferred shareholders with restored voting rights as of the end of the reporting period (account) 0

Shareholdings of top 10 shareholders

				Number of
				shares held
Name of	Type of	Shareholding	Number of	with trading	Number	of shares
shareholder	shareholder	percentage	shares held	restrictions	pledged	or frozen
		(%)
Chongqing Changshou Iron	Domestic non-
& Steel Company Limited	state-owned
	legal person	23.51	2,096,981,600	0 Pledged		2,096,981,600
HKSCC NOMINEES	Foreign legal
LIMITED	person	5.96	531,217,021	0 Unknown
Chongqing Qianxin Energy
Environmental Protection
Company Limited	Unknown	4.79	427,195,760	0 Pledged		427,190,070
Chongqing Rural Commercial
Bank Co., Ltd.	Unknown	3.24	289,268,939	0 Nil		0
Chongqing Guochuang
Investment and
Management Co., Ltd.	Unknown	3.12	278,288,059	0 Nil		0
Sinosteel Equipment &
Engineering Co., Ltd.	Unknown	2.83	252,411,692	0 Nil		0
Bank of Chongqing Co., Ltd.	Unknown	2.53	226,042,920	0 Nil		0
Industrial Bank Co., Ltd.
Chongqing Branch	Unknown	2.46	219,633,096	0 Nil		0
Agricultural Bank of China
Limited Chongqing Branch	Unknown	2.43	216,403,628	0 Nil		0
China Shipbuilding Industry
Complete Equipment
Logistics Co., Ltd.	Unknown	2.37	211,461,370	0 Nil		0

– 4 –

Description on the associated Chongqing Changshou Iron & Steel Company Limited is the controlling shareholder of the relationship or acts in Company and has no associated relationship with the other 9 shareholders and they are not parties concert among the above acting in concert as stipulated in the Administrative Measures for Management of Information shareholders Disclosure of Changes in Shareholdings of Shareholders of Listed Companies. The Company is also not aware of whether there is any associated relationship among the other 9 shareholders or whether they are parties acting in concert.

Description on the preferred N/A shareholders with restored voting rights and their shareholdings

2.4 Particulars of the total number of preferred shareholders and top ten preferred shareholders as of the end of the reporting period

Applicable ✓[ Not Applicable]

2.5 Changes in controlling shareholder or de facto controller

Applicable ✓[ Not Applicable]

2.6 Undue and unpaid overdue corporate bonds

Applicable ✓[ Not Applicable]

III MANAGEMENT DISCUSSION AND ANALYSIS

3.1 Discussion and Analysis of Business Operations

In first half of 2020, under the influence of the rapid release of production capacity in the iron and steel industry and the COVID-19 pandemic, the Company followed the production and operation policy of “expanding scale, adjusting structure and reducing costs”, and stuck to the working keynotes of “conducting comprehensive benchmarking to identify areas for improvement, increasing efforts in cost reduction and efficiency enhancement, refining management and minimizing resource consumption”. With a focus on “scale + cost” and “efficiency + benefit”, the Company carried out various tasks such as comprehensive benchmarking to identify areas for improvement. Accordingly, the Company maintained stable production and operation, and promoted the technical renovation plan in an efficient way, thus cementing a solid foundation for the further development of the Company.

– 5 –

In the first half of 2020, in response to the rising temperature of the blast furnace wall, the Company suspended the operation of No.1 blast furnace for a quick revamping, and enabled the blast furnace to achieve the expected production and efficiency in a short period, with its utilization factor reaching the advanced level of the industry. Meanwhile, the Company strengthened the daily maintenance of the other two blast furnaces, achieving a cumulative iron output of 2.86 million tonnes. In addition, the Company adopted appropriate refined material policies and optimized coal and ore blending plans. As a result, the fuel ratio reached 515kg/t iron, representing a year-on-year decrease of 13kg/t iron. As for steel making, the Company adopted measures such as saving iron to increase steel and using more scrap steel to increase production. The ratio of iron to steel reached the best level of 822kg/t steel in June and the cumulative steel output amounted to 3.28 million tonnes, representing a year-on-year increase of 2.96%. Meanwhile, the consumption of steel and iron materials was 1,063kg/t steel, representing a year-on-year decrease of 13kg/t steel. As for rolled steel, the Company optimized the structure to increase production according to the market demand and production line performance. The Company produced 3.14 million tonnes of steel products, representing a year-on-year increase of 4.25%, and sold 3.14 million tonnes of steel products, achieving a balance between production and sales.

In the first half of 2020, the Company’s profit was reduced by RMB612 million due to lower steel price and higher raw material price. However, the Company vigorously conducted comprehensive benchmarking to identify areas for improvement and adopted proactive measures for cost reduction and efficiency enhancement, resulting in significant improvement of the main economic and technical indicators and a year-on-year decrease of RMB146 million in process costs. After defusing the adverse factors impacting the profit in the external market, the Company achieved a profit of RMB121 million.

In the future, the Company will strive to build itself into a 10 milliontonne-level iron and steel enterprise, shape “Chongqing Iron & Steel to be beautiful and picturesque “, and take “becoming a leader in the steel industry in Southwest China” as its vision and goal. Meanwhile, it will make every effort to promote its production and operation, project construction and various reform and development initiatives, and continuously enhance the competitiveness of the Company. In 2020, the Company plans to produce 6.12 million tonnes of pig iron, 6.80 million tonnes of steel and 6.38 million tonnes of steel products, and realize sales volume of 6.38 million tonnes of steel products and sales revenue of RMB22.0 billion (tax exclusive).

– 6 –

3.2 Analysis of Principal Business

(1) Analysis of changes in certain items from financial statements

Unit: RMB’000

		For the
	For the	corresponding
	Reporting	period last
Item	Period	year	Change
			(%)
Revenue	10,927,367	11,483,560	-4.84
Cost of sales	10,342,993	10,342,032	0.01
Distribution and selling expenses	53,355	45,161	18.14
General and administrative expenses	244,093	330,030	-26.04
Finance expenses	90,148	75,985	18.64
Research and development expenses	–	–	–
Net cash flow from operating
activities	82,586	88,417	-6.59
Net cash flow from investing
activities	251,153	-214,233	N/A
Net cash flow from financing
activities	1,039,510	370,217	180.78

Reasons for change in distribution and selling expenses: The increase in distribution and selling expenses was mainly due to the fact that higher steel inventory as a result of the COVID-19 led to an increase in freight transportation.

Reasons for change in general and administrative expenses: The decrease in general and administrative expenses was mainly due to the decrease in provision for the incentive fund and the apportionment according to the nature of expenses.

Reasons for change in financial expenses: The increase in financial expenses was mainly due to the increase in interest expenses as a result of increased financing.

Reasons for change in net cash flow from investing activities: The increase in net cash flow from investing activities was mainly due to the decrease in financial investments.

Reasons for change in net cash flow from financing activities: The increase in net cash flow from financing activities was mainly due to the increase in financing.

– 7 –

(2) Others

① Detailed description of major changes in the Company’s profit structure or profit sources

✓[ Applicable] Not Applicable

In the first half of 2020, the Group realized a total profit of RMB121 million, representing a year-on-year decrease of 80.33%, which was mainly due to the following reasons: the overall selling price of steel products amounted to RMB3,348/tonne, representing a year-on-year decrease of 4.62% and resulting in a decrease of RMB485 million in profit; the rising prices of raw materials, such as ore, coal, alloy, scrap steel, etc., resulted in a decrease of RMB127 million in profit; the Company vigorously conducted comprehensive benchmarking to to identify areas for improvement and adopted proactive measures for cost reduction and efficiency enhancement, resulting in significant improvement of the main economic and technical indicators and remarked decrease in consumption of various resources, and thus achieving a year-onyear decrease of RMB146 million in process costs.

In the first half of 2020, the Group’s revenue from principal operations amounted to RMB10,876 million, representing a year-on-year decrease of 4.94%. In particular, the average sales price of steel products was decreased by 4.62% year-on-year to RMB3,348/tonne, leading to a decrease of RMB485 million in sales revenue.

Composition of revenue from principal operations:

Type First half Amount (RMB’000) Plates 3,456,117 Hot rolled coils 5,313,138 Bars 958,786 Wire rods 773,514 Sub-total of steel products 10,501,555 Others 374,200 Total 10,875,755	of 2020 Percentage (%) 31.78 48.85 8.82 7.11 96.56 3.44 100.00	First half Amount (RMB’000) 3,542,337 5,158,288 1,142,570 1,151,350 10,994,545 446,743 11,441,288	of 2019 Year-on- year growth Percentage (%) (%) 30.96 -2.43 45.08 3.00 9.99 -16.09 10.06 -32.82 96.09 -4.48 3.91 -16.24 100.00 -4.94

– 8 –

Sales prices of steel products:

Item Sales price in the first half of 2020 Sales price in the first half of 2019 (RMB/tonne) (RMB/tonne) Plates 3,508 3,622 Hot rolled coils 3,252 3,389 Bars 3,337 3,659 Wire rods 3,356 3,599 Total 3,348 3,510 Sales volumes of steel products: Item Sales volume for the first half of 2020 Sales volume for the first half of 2019 (Ten thousand tonnes) (Ten thousand tonnes) Plates 98.53 97.79 Hot rolled coils 163.39 152.22 Bars 28.73 31.22 Wire rods 23.05 31.99 Total 313.70 313.22	Year-on-year growth (%) -3.15 -4.04 -8.80 -6.75 -4.62 Year-on-year growth (%) 0.76 7.34 -7.98 -27.95 0.15	Income increase (RMB’000) -113,023 -223,701 -92,675 -56,085 -485,484 Income increase (RMB’000) 26,803 378,551 -91,109 -321,751 -7,506

– 9 –

② Others

✓[ Applicable]

Not Applicable

Principal operations by sectors, products and regions

Unit: RMB’000

By sectors Iron and steel By products Steel products Others By regions Southwest region Other regions Total	Revenue 10,875,755 Revenue 10,501,555 374,200 Revenue 10,281,370 594,385 10,875,755	Main operations by sectors Cost of sales Gross Margin Year-on- year increase/ decrease in revenue Year-on- year increase/ decrease in cost of sales Year-on- year increase/ decrease in gross margin (%) (%) (%) (%) 10,316,945 5.14 -4.94 0.09 -4.77 Main operations by products Cost of sales Gross Margin Year-on- year increase/ decrease in revenue Year-on- year increase/ decrease in cost of sales Year-on- year increase/ decrease in gross margin (%) (%) (%) (%) 9,934,475 5.40 -4.48 0.70 -4.87 382,470 -2.21 -16.24 -13.47 -3.27 Main operations by regions Cost of sales Gross Margin Year-on- year increase/ decrease in revenue Year-on- year increase/ decrease in cost of sales Year-on- year increase/ decrease in gross margin (%) (%) (%) (%) 9,767,107 5.00 -5.44 -0.39 -4.82 549,838 7.49 4.60 9.63 -4.25 10,316,945 5.14 -4.94 0.09 -4.77

– 10 –

3.3 Changes of accounting policies, estimations and methods and their reasons and impact as compared to the last accounting period

Applicable ✓[ Not Applicable]

3.4 Correction of significant accounting errors requiring restatement, correction amount, and their reasons and impact during the reporting period.

Applicable ✓[ Not Applicable]

IV. OTHER SIGNIFICANT EVENTS

4.1 Compliance with the Corporate Governance Code

To the best knowledge of the Board, the Company had complied with the requirements of the Corporate Governance Code (the “ Code ”) set out in Appendix 14 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the “ Listing Rules ”) during the reporting period, and no deviation from the Code has been identified.

4.2 Model Code for Securities Transactions by Directors

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (“ Model Code ”) as set out in Appendix 10 to the Listing Rules as the code for trading of the Company’s securities by directors. All directors of the Company confirmed upon specific enquiries that they had complied with the required standards as set out in the Model Code for the six months ended 30 June 2020.

4.3 Interim Dividend

Given the fact that the accumulated undistributed profit of the Company remained negative as of the end of the reporting period, the Company does not recommend distribution of any interim dividend for the six months ended 30 June 2020 according to the Article 250 of the Articles of Association.

4.4 Purchase, Sale or Redemption of Listed Securities of the Company

From 6 March 2020 to 12 March 2020, the Company accumulatively repurchased a total of 50,000,000 A shares through centralized bidding trading, representing approximately 0.56% of its total share capital. The highest, lowest and average price transacted for such shares were RMB1.71 per share, RMB1.65 per share and RMB1.69 per share, respectively. The total amount paid for such shares was RMB84,333,550.00 (excluding transaction fees).

– 11 –

4.5 Major acquisition and disposal of subsidiaries and affiliates

No major acquisition and disposal of subsidiaries and affiliates occurred during the reporting period.

4.6 Audit Committee

The Audit Committee is comprised of three independent non-executive directors and one non-executive director, namely, Xin Qing Quan, Xu Yi Xiang, Wong Chun Wa and Zhou Ping with Mr. Xin Qing Quan acting as the chairman of the Audit Committee.

The unaudited interim financial report of the Company for the six months ended 30 June 2020 had been reviewed by the members of the Audit Committee before being submitted to the Board for approval.

4.7 Interests or Short Positions

As at 30 June 2020, the interests and short positions (including interests or short positions which they were taken or deemed to have under relevant provisions of the Securities and Futures Ordinance (“ SFO ”)) of the directors, supervisors and senior management members in the shares or underlying shares or debentures of the Company and any of its associated corporations (within the meaning of Part XV of the SFO), which were required to be recorded in the register required to be kept by the Company pursuant to Section 352 of the SFO, or which were required, pursuant to the Rules Governing the Listing of Securities on the Stock Exchange and the Model Code for Securities Transactions by Directors of Listed Companies, to be notified to the Company and the Stock Exchange, were as follows:

					Percentage	Percentage
					in the share	in the total
	The Company/			Total number	capital of	share capital
	associated		Nature of	of interested	A shares of	of the	Class of
Name	corporations	Capacity	interests	shares held	the Company	Company	shares
				(share)	(%)	(%)
Wang Li	The Company	Director	Beneficial	113,800	0.00136	0.00128	A share
			interests	(long position)

– 12 –

V. UNAUDITED FINANCIAL STATEMENTS OF THE GROUP FOR THE SIX MONTHS ENDED 30 JUNE 2020 PREPARED IN ACCORDANCE WITH THE PRC GAAP

Consolidated Statement of Financial Position

As at 30 June 2020

Unit: RMB’000

Items Current assets: Cash and bank balances Financial assets held for trading Trade receivables Receivables financing Prepayments Other receivables Inventories Other current assets Total current assets Non-current assets: Long-term equity investments Other equity investments Property, plant and equipment Construction in progress Intangible assets Deferred tax assets Other non-current assets Total non-current assets Total assets	30 June 2020 3,208,632 – 11,747 2,528,817 647,644 7,203 2,979,319 5,055 9,388,417 28,258 15,000 16,112,970 637,162 2,361,008 68,436 – 19,222,834 28,611,251	31 December 2019 1,783,747 400,000 5,610 861,373 751,498 78,132 3,931,513 43,410 7,855,283 28,258 5,000 16,442,264 171,858 2,392,114 68,436 12,513 19,120,443 26,975,726

– 13 –

Items Current liabilities: Short-term borrowings Notes payable Trade payables Contract liabilities Employee benefits payable Taxes payable Other payables Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Bonds payable Long-term payables Long-term employee benefits payable Deferred income Other non-current liabilities Total non-current liabilities Total liabilities Shareholders’ equity： Share capital Capital reserves Less: Treasury shares Special reserves Surplus reserves Accumulated losses Total shareholders’ equity Total liabilities and shareholders’ equity	30 June 2020 695,273 88,805 2,104,786 1,175,270 125,703 146,648 555,798 456,526 152,785 5,501,594 993,347 333,333 175,707 37,086 2,050,000 3,589,473 9,091,067 8,918,602 19,282,147 65,940 21,025 606,991 (9,242,641) 19,520,184 28,611,251	31 December 2019 384,528 91,127 1,726,883 1,145,615 257,143 70,867 421,768 841,576 150,208 5,089,715 – – 201,737 38,271 2,250,000 2,490,008 7,579,723 8,918,602 19,282,147 62,314 14,573 606,991 (9,363,996) 19,396,003 26,975,726

– 14 –

Statement of Financial Position of the Parent Company

As at 30 June 2020

Unit: RMB’000

Items Current assets: Cash and bank balances Financial assets held for trading Trade receivables Receivables financing Prepayments Other receivables Inventories Other current assets Total current assets Non-current assets: Long-term equity investments Other equity investments Property, plant and equipment Construction in progress Intangible assets Deferred tax assets Other non-current assets Total non-current assets Total assets	30 June 2020 3,202,852 – 11,774 2,528,817 609,907 7,098 2,971,875 4,087 9,336,410 28,258 15,000 16,112,806 637,162 2,361,008 68,192 – 19,222,426 28,558,836	31 December 2019 1,779,736 400,000 5,610 861,373 707,289 78,027 3,931,513 43,410 7,806,958 28,258 5,000 16,442,087 171,858 2,392,114 68,192 12,513 19,120,022 26,926,980

– 15 –

Items Current liabilities: Short-term borrowings Notes payable Trade payables Contract liabilities Employee benefits payable Taxes payable Other payables Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Bonds payable Long-term payables Long-term employee benefits payable Deferred income Other non-current liabilities Total non-current liabilities Total liabilities Shareholders’ equity： Share capital Capital reserves Less: Treasury shares Special reserves Surplus reserves Accumulated losses Total shareholders’ equity Total liabilities and shareholders’ equity	30 June 2020 695,273 88,805 2,104,540 1,133,379 125,703 146,538 555,628 456,526 147,339 5,453,731 993,347 333,333 175,707 37,086 2,050,000 3,589,473 9,043,204 8,918,602 19,313,090 65,940 21,025 577,012 (9,248,157) 19,515,632 28,558,836	31 December 2019 384,528 91,127 1,726,883 1,105,972 257,143 70,398 421,590 841,576 144,958 5,044,175 – – 201,737 38,271 2,250,000 2,490,008 7,534,183 8,918,602 19,313,090 62,314 14,573 577,012 (9,368,166) 19,392,797 26,926,980

– 16 –

Consolidated Income Statement

For the six months ended 30 June 2020

Unit: RMB’000

Items I. Revenue Less: Cost of sales Taxes and surcharges Distribution and selling expenses General and administrative expenses Finance expenses Including: Interest expenses Interest income Add: Other income Investment income II. Operating profit Add: Non-operating income Less: Non-operating expenses III. Total profit Less: Income tax expenses	Six months ended 30 June 2020 10,927,367 10,342,993 88,595 53,355 244,093 90,148 110,693 23,202 6,515 6,791 121,489 684 747 121,426 71	Six months ended 30 June 2019 11,483,560 10,342,032 92,194 45,161 330,030 75,985 106,499 33,469 1,227 5,351 604,736 13,252 665 617,323 1,595

– 17 –

Items IV. Net Profit (I) Breakdown by continuity of operations 1. Net profit from continuing operations (II) Breakdown by attributable interests 1. Net profit attributable to owners of the parent company 2. Non-controlling interests V. Other comprehensive income after tax VI. Total comprehensive income Total comprehensive income attributable to owners of the parent company Total comprehensive income attributable to non-controlling interests VII. Earnings per share: (I) Basic earnings per share (RMB/share) (II) Diluted earnings per share (RMB/share)	Six months ended 30 June 2020 121,355 121,355 121,355 – 121,355 121,355 121,355 – 0.01 0.01	Six months ended 30 June 2019 615,728 615,728 615,728 – 615,728 615,728 615,728 – 0.07 0.07

– 18 –

Income Statement of the Parent Company

For the six months ended 30 June 2020

Unit: RMB’000

Items I. Revenue Less: Cost of sales Taxes and surcharges Distribution and selling expenses General and administrative expenses Finance expenses Including: Interest expenses Interest income Add: Other income Investment income II. Operating profit Add: Non-operating income Less: Non-operating expenses III. Total profit Less: Income tax expenses IV. Net Profit Breakdown by continuity of operations 1. Net profit from continuing operations V. Other comprehensive income after tax VI. Total comprehensive income	Six months ended 30 June 2020 10,933,097 10,350,437 88,528 53,116 244,093 90,157 110,693 23,193 6,515 6,791 120,072 684 747 120,009 – 120,009 120,009 120,009 120,009	Six months ended 30 June 2019 11,486,217 10,350,441 91,997 44,950 330,030 75,989 106,499 33,463 1,227 9,571 603,608 13,252 665 616,195 – 616,195 616,195 616,195 616,195

– 19 –

Consolidated Statement of Changes in Equity For the six months ended 30 June 2020

Unit: RMB’000

Six months ended 30 June 2020

	Total equity attributable to shareholders	Total equity attributable to shareholders	Total equity attributable to shareholders	Total equity attributable to shareholders	Total equity attributable to shareholders	Total equity attributable to shareholders	Non- controlling interests Total shareholders’ equity – 19,396,003 – 124,181 – 121,355 – (3,626) – (3,626) – 6,452 – 12,954 – 6,502 – 19,520,184	Non- controlling interests Total shareholders’ equity – 19,396,003 – 124,181 – 121,355 – (3,626) – (3,626) – 6,452 – 12,954 – 6,502 – 19,520,184
Share capital 8,918,602 – – – – – – – 8,918,602	Capital reserves 19,282,147 – – – – – – – 19,282,147
								19,520,184


	Total equityattributable		to shareholders of theparent company			Accumulated losses (10,289,719) 615,728 615,728 – – – – – (9,673,991)	Non- controlling interests – – – – – – – – –	Total shareholders’ equity 18,531,665 562,018 615,728 (62,314) (62,314) 8,604 12,840 4,236
Share capital 8,918,602 – – – – – – – 8,918,602	Capital reserves 19,282,147 – – – – – – – 19,282,147	Less: Treasury shares Other comprehensive income – – 62,314 – – – 62,314 – 62,314 – – – – – – – 62,314 –		Special reserves 13,644 8,604 – – – 8,604 12,840 4,236 22,248	Surplus reserves 606,991 – – – – – – – 606,991
								19,093,683

– 20 –

Statement of changes in Equity of the Parent Company For the six months ended 30 June 2020

Unit: RMB’000

		Six months ended 30 June 2020	Six months ended 30 June 2020	Six months ended 30 June 2020
Share capital 8,918,602 – – – – – – – 8,918,602	Capital reserves 19,313,090 – – – – – – – 19,313,090	Less: Treasury shares Other comprehensive income Special reserves 62,314 – 14,573 3,626 – 6,452 – – – 3,626 – – 3,626 – – – – 6,452 – – 12,954 – – 6,502 65,940 – 21,025 Six months ended 30 June 2019			Surplus reserves 577,012 – – – – – – – 577,012	Accumulated losses (9,368,166) 120,009 120,009 – – – – – (9,248,157)	Total shareholders’ equity 19,392,797 122,835 120,009 (3,626) (3,626) 6,452 12,954 6,502
							19,515,632


Share capital 8,918,602 – – – – – – – 8,918,602	Capital reserves 19,313,090 – – – – – – – 19,313,090	Less: Treasury shares – 62,314 – 62,314 62,314 – – – 62,314	Other comprehensive income – – – – – – – – –	Special reserves 13,644 8,604 – – – 8,604 12,840 4,236 22,248	Surplus reserves 577,012 – – – – – – – 577,012	Accumulated losses (10,292,036) 616,195 616,195 – – – – – (9,675,841)	Total shareholders ’ equity 18,530,312 562,485 616,195 (62,314) (62,314) 8,604 12,840 4,236
							19,092,797

– 21 –

Consolidated Statement of Cash Flows For the six months ended 30 June 2020

Items
I. Cash flows from operating activities:
Cash received from sale of goods and
rendering of services
Other cash received relating to operating
activities
Sub-total of cash inflows from operating
activities
Cash paid for purchase of goods and
services
Cash paid to and on behalf of employees
Cash paid for all types of taxes
Other cash paid relating to operating
activities
Sub-total of cash outflows from operating
activities
Net cash flows from operating activities
II. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from return on investments
Sub-total of cash inflows from investing
activities
Cash paid for acquisition of property,
plant and equipment, intangible assets
and other long-term assets
Cash paid for acquisition of investments
Sub-total of cash outflows from investing
activities
Net cash flows from investing activities

Unit: RMB’000
Six months
ended 30
June 2020
Six months
ended 30
June 2019
9,248,203
10,334,249
188,980
61,079
9,437,183
10,395,328
8,155,684
9,030,724
650,980
743,222
279,479
365,205
268,454
167,760
9,354,597
10,306,911
82,586
88,417
433,000
404,400
6,791
5,351
439,791
409,751
145,638
36,926
43,000
587,058
188,638
623,984
251,153
(214,233)

– 22 –

Items III. Cash flows from financing activities: Cash received from borrowings Other cash received relating to financing activities Sub-total of cash inflows from financing activities Cash repayments of borrowings Cash paid for distribution of dividends or profits, and for interest expenses Other cash paid relating to financing activities Sub-total of cash outflows from financing activities Net cash flows from financing activities IV. Effect of changes in exchange rate on cash and cash equivalents V. Net increase in cash and cash equivalents Add: C ash and cash equivalents at the beginning of the period VI. Cash and cash equivalents at the end of the period	Six months ended 30 June 2020 2,004,500 – 2,004,500 870,000 85,445 9,545 964,990 1,039,510 – 1,373,249 1,595,323 2,968,572	Six months ended 30 June 2019 105,000 795,088 900,088 200,000 79,446 250,425 529,871 370,217 – 244,401 1,969,543 2,213,944

– 23 –

Statement of Cash Flows of the Parent Company For the six months ended 30 June 2020

Unit: RMB’000
Six months
ended 30
June 2020
Six months
ended 30
June 2019
8,975,505
10,328,057
187,118
61,079
9,162,623
10,389,136
7,885,766
9,030,724
650,980
743,222
278,758
363,825
266,302
167,564
9,081,806
10,305,335
80,817
83,801

– 24 –

Items II. Cash flows from investing activities: Cash received from disposal of investments Cash received from return on investments Sub-total of cash inflows from investing activities Cash paid for acquisition of property, plant and equipment, intangible assets and other long- term assets Cash paid for acquisition of investments Sub-total of cash outflows from investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from borrowings Other cash received relating to financing activities Sub-total of cash inflows from financing activities Cash repayments of borrowings Cash paid for distribution of dividends or profits, and for interest expenses Other cash paid relating to financing activities Sub-total of cash outflows from financing activities Net cash flows from financing activities	Six months ended 30 June 2020 433,000 6,791 439,791 145,638 43,000 188,638 251,153 2,004,500 – 2,004,500 870,000 85,445 9,545 964,990 1,039,510	Six months ended 30 June 2019 404,400 9,571 413,971 36,926 587,058 623,984 (210,013) 105,000 795,088 900,088 200,000 79,446 250,425 529,871 370,217

– 25 –

Items IV. Effect of changes in exchange rate on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Cash and cash equivalents at the beginning of the period VI. Cash and cash equivalents at the end of the period	Six months ended 30 June 2020 – 1,371,480 1,591,312 2,962,792	Six months ended 30 June 2019 – 244,005 1,967,354 2,211,359

By order of the Board Chongqing Iron & Steel Company Limited Meng Xiangyun Secretary to the Board

Chongqing, the PRC, 26 August 2020

As at the date of this announcement, the Directors of the Company are: Mr. Zhang Jingang (Non-executive Director), Mr. Song De An (Non-executive Director), Mr. Zhou Ping (Non-executive Director), Mr. Liu Jianrong (Executive Director), Mr. Tu Deling (Executive Director), Mr. Zou An (Executive Director), Mr. Xin Qingquan (Independent Non-executive Director), Mr. Xu Yixiang (Independent Non-executive Director) and Mr. Wong Chunwa (Independent Non-executive Director).

– 26 –

AI assistant

XD Inc. — Interim / Quarterly Report 2020

50574_rns_2020-08-25_5ef90c2b-7696-47ed-be05-6e39a419eb12.pdf

UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020

I IMPORTANT

Nil

II BASIC INFORMATION ON THE COMPANY

2.1 Company Information

Stock Profile

2.2 Major financial data of the Company

2.3 Shareholdings of top ten shareholders

Unit: shares

Shareholdings of top 10 shareholders

2.4 Particulars of the total number of preferred shareholders and top ten preferred shareholders as of the end of the reporting period

2.5 Changes in controlling shareholder or de facto controller

2.6 Undue and unpaid overdue corporate bonds

III MANAGEMENT DISCUSSION AND ANALYSIS

3.1 Discussion and Analysis of Business Operations

3.2 Analysis of Principal Business

(1) Analysis of changes in certain items from financial statements

(2) Others

Sales prices of steel products:

② Others

✓[ Applicable]

Not Applicable

Unit: RMB’000

3.3 Changes of accounting policies, estimations and methods and their reasons and impact as compared to the last accounting period

IV. OTHER SIGNIFICANT EVENTS

4.1 Compliance with the Corporate Governance Code

4.2 Model Code for Securities Transactions by Directors

4.3 Interim Dividend

4.4 Purchase, Sale or Redemption of Listed Securities of the Company

4.5 Major acquisition and disposal of subsidiaries and affiliates

4.6 Audit Committee

4.7 Interests or Short Positions

Consolidated Statement of Financial Position

Statement of Financial Position of the Parent Company

Unit: RMB’000

Consolidated Income Statement

Unit: RMB’000

Unit: RMB’000

Consolidated Statement of Changes in Equity For the six months ended 30 June 2020

Unit: RMB’000

Six months ended 30 June 2020

Statement of changes in Equity of the Parent Company For the six months ended 30 June 2020

Unit: RMB’000

More from XD Inc.

XD Inc. Interim / Quarterly Report 2020