XD Inc. — Interim / Quarterly Report 2021

Apr 29, 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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FIRST QUARTERLY REPORT OF 2021

I. IMPORTANT NOTICE

• 1.1 The board of directors (the “ Board ”), the supervisory committee and the directors, supervisors and senior management of Chongqing Iron & Steel Company Limited (the “ Company ”) warrant the truthfulness, accuracy and completeness of the contents in the quarterly report, confirm that there are no false representations or misleading statements contained in or material omissions from this report, and jointly and severally accept legal responsibility.

• 1.2 All directors of the Company attended the Board meeting to consider the quarterly report.

• 1.3 Mr. Liu Jianrong, the chairman of the Company and Mr. Zou An, the chief financial officer and Lei Xiaodan, the chief accountant (accounting officer), warrant the truthfulness, accuracy and completeness of the financial statements contained in the quarterly report.

• 1.4 The first quarterly report of the Company was unaudited.

– 1 –

1.5 Operating highlights of the Company

In the first quarter, by seizing the favorable opportunity of the recovery of iron and steel market, the Company strengthened its control over the production and operation, the scale benefit of production and sales steadily increased and the production and operation had continued to improve. In the first quarter, the Company produced 2,264,900 tonnes of iron, 2,419,200 tonnes of steel and 2,329,900 tonnes of commodity billet, and completed 26.65%, 24.19% and 24.32% of annual targets, respectively, representing an increase of 756,700 tonnes, 778,300 tonnes and 749,100 tonnes, or 50.17%, 47.43% and 47.39% as compared with the same period of the previous year, respectively. The operating income was RMB9.978 billion, representing a year-on-year increase of 92.70%, while the total profit was RMB1.092 billion, representing a year-on-year increase of 251 times.

During the first quarter, the Company had adhered to comprehensive benchmarking, increased efforts in cost reduction and efficiency enhancement, aimed at producing over 10-million-tonne products, strived to promote the construction of technological upgrading projects, optimized the model of production and organization and maintained a stable rolling process and efficient production of iron and steel. In March, the production of iron, steel and commodity billet achieved a record high. In particular, the production of steel was 906,100 tonnes, directly “exceeding 700,000 tonnes and reaching over 900,000 tonnes”; the main technical and economic indicators repeatedly set new records, the dry coking coal proportion, coal powder injection ratio, sintering machine utilization coefficient, blast furnace utilization coefficient, steel and iron material consumption, hot charging rate, and rolling operation efficiency set new records. The production targets in the first quarter had been fully completed, and the production scale with an annual capacity of 10 million tonnes had been basically realized.

– 2 –

II. BASIC INFORMATION OF THE COMPANY

2.1 Major financial data

Unit: RMB’000

	As at the end of		Changes from
	the reporting	As at the end of	the end of the
	period	the previous year	previous year
			(%)
Total assets	42,136,595	39,949,856	5.47
Net assets attributable to the
shareholders of the Company	21,134,503	20,038,467	5.47
		From the
		beginning of the
	From the	previous year to
	beginning of the	the end of the
	year to the end	reporting period	Changes from the
	of the reporting	of the previous	same period last
	period	year	year
			(%)
Net cash flow from operating activities	-1,031,089	-213,075	N/A
		From the
		beginning of the
	From the	previous year to
	beginning of the	the end of the
	year to the end	reporting period	Changes from the
	of the reporting	of the previous	same period last
	period	year	year
			(%)
Operating income	9,978,422	5,178,323	92.70
Net profit attributable to the
shareholders of the Company	1,092,412	4,173	26,078.10
Net profit attributable to the
shareholders of the Company after
extraordinary profit or loss	1,077,206	253	425,673.12
	5.31	0.02	Increased by
Return on net assets (weighted average)			5.29 percentage
(%)			points
Basic earnings per
share (RMB per share)	0.12	0.0005	23,900.00
Diluted earnings per share
(RMB per share)	0.12	0.0005	23,900.00

– 3 –

Extraordinary profit or loss items and amounts

✓ Applicable Not applicable

Unit: RMB’000

Item Government grants included in profit or loss of the period other than those closely related with the normal operation of the Company and in compliance with national policies and regulations and conferred on the standard quota or quantity basis Capital occupancy fee from non-financial enterprises recognized through profit or loss Other non-operating income and expenses other than the above items Total

Amount for the period 13,735 929 542

15,206

– 4 –

• 2.2 Total number of shareholders and shareholdings of the top 10 shareholders and the top 10 holders of tradable shares (or holders of shares not subject to trading moratorium) as at the end of the reporting period

Unit: Share

Total number of shareholders

138,245

Shareholdings of the top 10 shareholders

			Number
	Number of		of shares		Pledged
	shares held as		held subject	or frozen status
	at the end of the		to trading	Share			Nature of
(Full) Name of shareholder	period	Percentage	moratorium	status	Number		shareholders
		(%)
Chongqing Changshou Iron & Steel	2,096,981,600	23.51	0	Nil		0	Domestic non-state-
Company Limited							owned legal person
HKSCC NOMINEES LIMITED	531,509,621	5.96	0	Unknown		－	Overseas legal person
Chongqing Qianxin Group Co., Ltd.	427,195,760	4.79	0	Pledged	427,190,070		State-owned legal
							person
Chongqing Rural Commercial Bank	289,268,939	3.24	0	Nil		0	State-owned legal
Co., Ltd.							person
Chongqing Guochuang Investment	278,288,059	3.12	0	Nil		0	State-owned legal
and Management Co., Ltd.							person
Sinosteel Equipment & Engineering	252,411,692	2.83	0	Nil		0	State-owned legal
Co., Ltd.							person
Bank of Chongqing Co., Ltd.	226,042,920	2.53	0	Nil		0	State-owned legal
							person
Industrial Bank Co., Ltd. Chongqing	219,633,096	2.46	0	Nil		0	Unknown
Branch
Agricultural Bank of China Limited	216,403,628	2.43	0	Nil		0	State-owned legal
Chongqing Branch							person
China Shipbuilding Industrial	211,461,370	2.37	0	Nil		0	State-owned legal
Complete Equipment & Logistics							person
Co., Ltd.

– 5 –

Shareholdings of the top 10 holders of shares not subject to trading moratorium

Name of shareholder

Chongqing Changshou Iron & Steel Company Limited HKSCC NOMINEES LIMITED Chongqing Qianxin Group Co., Ltd. Chongqing Rural Commercial Bank Co., Ltd.

Chongqing Guochuang Investment and Management Co., Ltd. Sinosteel Equipment & Engineering Co., Ltd. Bank of Chongqing Co., Ltd.

Industrial Bank Co., Ltd. Chongqing Branch

Agricultural Bank of China Limited Chongqing Branch China Shipbuilding Industrial Complete Equipment & Logistics Co., Ltd.

Number of
shares not
subject to
trading
moratorium	Class and number	of shares
	Class	Number
2,096,981,600	RMB-denominated	2,096,981,600
	ordinary shares
531,509,621	Overseas listed foreign	531,509,621
	shares
427,195,760	RMB-denominated	427,195,760
	ordinary shares
289,268,939	RMB-denominated	289,268,939
	ordinary shares
278,288,059	RMB-denominated	278,288,059
	ordinary shares
252,411,692	RMB-denominated	252,411,692
	ordinary shares
226,042,920	RMB-denominated	226,042,920
	ordinary shares
219,633,096	RMB-denominated	219,633,096
	ordinary shares
216,403,628	RMB-denominated	216,403,628
	ordinary shares
211,461,370	RMB-denominated	211,461,370
	ordinary shares

Explanation about connected relationship and acts in concert of the above shareholders

There is connected relationship between Chongqing Changshou Iron & Steel Company Limited (the Controlling Shareholder of the Company) and Sinosteel Equipment & Engineering Co., Ltd. There is no connected relationship between Chongqing Changshou Iron & Steel Company Limited and the other 8 shareholders and they are not parties acting in concert as defined in Measures for Management on Information Disclosure of Changes in Shareholdings of Listed Companies’ Shareholders. The Company is not aware of any connected relationship among the other 9 shareholders or whether they are parties acting in concert

Explanation on preferential shareholders Not applicable with voting rights restored and their shareholdings

• 2.3 Total number of preferential shareholders and shareholdings of the top 10 preferential shareholders and the top 10 holders of preferential shares not subject to trading moratorium as at the end of the reporting period

Applicable ✓ Not applicable

– 6 –

III. SIGNIFICANT EVENTS

• 3.1 Material changes in items of major accounting statements and financial indicators of the Company and the reason therefor

✓ Applicable

Not applicable

From January to March in 2021, the Group realized a total profit of RMB1,092 million, representing a year-on-year increase of 251 times, which was mainly due to the following reasons: the selling price of commodity billet amounted to RMB4,161/tonne, representing a year-on-year increase of 24.77% and resulting in an increase of RMB1,586 million in profit; the sales volume of commodity billet reached 2,315,600 tonnes, representing a yearon-year increase of 55.96%, and achieving an increase of RMB317 million in profit; the Company continuously promoted the cost reduction plan, and thus critical technical and economic indicators such as blast furnace utilization coefficient, fuel ratio, steel and iron material consumption and yield of rolled steel improved significantly, and the consumption obviously reduced. Costs in the first quarter reduced as a result of the significant increase in production scale, with the cost in the aspect of process representing a decrease of RMB613 million; the increase in prices of raw materials, such as ore, coal, alloy, scrap steel, etc., resulted in a decrease of RMB1,454 million in profit.

(1) Main business by sectors, products and regions

Unit: RMB’000

		Main	business by sectors	business by sectors
				Year-	Year-
				on- year	on- year
				increase/	increase/
				decrease in	decrease in	Year-on-year
	Operating	Operating	Gross	operating	operating	increase/decrease
By sectors	income	cost	Margin	income	cost	in gross margin
			(%)	(%)	(%)	(%)
Iron and steel	9,939,674	8,628,307	13.19	92.45	75.36	8.46
		Main business by products
				Year-	Year-
				on- year	on- year
				increase/	increase/
				decrease in	decrease in	Year-on-year
	Operating	Operating	Gross	operating	operating	increase/decrease
By products	income	cost	Margin	income	cost	in gross margin
			(%)	(%)	(%)	(%)
Commodity billet	9,634,313	8,335,724	13.48	94.56	76.78	8.70
Others	305,361	292,583	4.18	43.41	42.74	0.44

– 7 –

(2) Analysis on material changes in assets and liabilities

Unit: RMB’000 Audit type: unaudited

				Percentage
		Percentage		of the
		of the		amount
		amount at	Amount	at the end	Changes
		the end of	at the end	of the	from the
	Amount at	the period	of the	previous	end of the
	the end of	in total	previous	period in	previous
Item	the period	assets	period	total assets	period	Explanation
		(%)		(%)	(%)
Trade receivables	115,264	0.27	35,041	0.09	228.94	Spread settlement
Prepayment	895,160	2.12	534,516	1.34	67.47	Scale enhancement, and
						increase in purchase of
						ores
Inventories	6,995,174	16.60	5,054,908	12.65	38.38	Scale enhancement, and
						increase in inventory
						of materials due to
						the maintenance of
						ship lock of the Three
						Gorges Dam
Long-term equity	51,237	0.12	79,494	0.20	-35.55	Completion of acquisition
investments						of 72% equity interest
						of Xingang Changlong,
						which has become
						a wholly-owned
						subsidiary of the
						Company
Short-term borrowings	1,385,055	3.29	700,788	1.75	97.64	New bank loans
Notes payable	2,140,183	5.08	1,272,291	3.18	68.21	Increase in bills payment
Accounts payable	3,627,877	8.61	2,652,728	6.64	36.76	Increase in purchase of
						raw materials
Taxes payable	35,184	0.08	9,177	0.02	283.39	Provision for taxes on
						land and buildings for
						the period
Other payables	1,001,138	2.38	1,567,618	3.92	-36.14	Payment for construction
Non-current liabilities	1,952,007	4.63	4,056,471	10.15	-51.88	Repayment of borrowings
due within one year						from Changshou Iron &
						Steel
Long-term payables	2,685,914	6.37	1,352,264	3.38	98.62	New financial lease from
						China Reform Financial

– 8 –

3.2 Analysis and explanation of progress and impact of significant events and their solutions

✓ Applicable Not applicable

(1) Employee Share Ownership Plan

As authorized at the 2017 annual general meeting of the Company, the Company convened the 31st meeting of the eighth session of the Board and the 20th meeting of the eighth session of the supervisory committee on 30 December 2020, at which the Resolution in relation to Collection and Utilization of Bonus Fund of the Company for 2020 and the Resolution in relation to the Fourth Phase of Employee Share Ownership Plan and Adjustment to the Way of Distribution of Rights and Interests under the First, Second and Third Phases of Employee Share Ownership Plan (《關於公司第四期員工持股計劃及調 整第一、二、三期員工持股計劃權益分配方式的議案》) were considered and approved. According to the operation, safety, environmental protection and other relevant situations in 2020, the bonus fund provision for Employee Share Ownership Plan is made at 12.5% of the total profit (before the withdrawal of the bonus fund) under the audited consolidated statements for 2020.

The Company convened the first holders’ meeting of the fourth phase of the Employee Share Ownership Plan on 15 January 2021, at which the Constitution of the Meeting of the Holders of the Fourth Phase of the Employee Share Ownership Plan (《第四期員工持股計劃持 有人會議章程》), the Resolution in relation to the Establishment of the Management Committee of the Fourth Phase of Employee Share Ownership Plan and Authorization to the Management Committee to be Responsible for Matters Relevant to the Employee Share Ownership Plan (《關於設立第四期員工持股計劃管理委員會並授 權管理委員會負責員工持股計劃管理事宜的議案》) and the Resolution for the Election of the Members of the Management Committee of the Fourth Phase of the Employee Share Ownership Plan 《關於選舉第四期員工持股計劃管理委員會委員的議案》( ) were considered and approved.

As at 25 March 2021, the Company has completed the shares realization and distribution of interests under the first and second phase of Employee Share Ownership Plan by means of non-transaction transfers and transactions in the secondary market. At this point, the first and second phase of Employee Share Ownership Plan of the Company have been terminated.

– 9 –

(2) Connected Transactions

On 19 March 2021, the Resolution in relation to the Signing of the Service and Supply Agreement for Years from 2021 to 2023 between the Company and China Baowu and the Continuing Connected Transaction (including the Annual Amount Caps thereon) was approved at the thirty-fifth meeting of the eighth session of the Board of the Company. The Service and Supply Agreement agreed that the aggregate amount for the products provided to China Baowu Steel Group Corporation Limited (“ China Baowu ”) and its subsidiaries (collectively, “ China Baowu Group ”) by the Company and its subsidiaries (the “ Group ”) would not exceed RMB49,741 million for the period from 1 April 2021 to 31 December 2023, and the aggregate amount for the products, materials and services provided to the Group by China Baowu Group would not exceed RMB87,990 million for the period from 1 April 2021 to 31 December 2023. On 1 April 2021, the Company and China Baowu entered into the Service and Supply Agreement with a term from 1 April 2021 to 31 December 2023.

On 19 March 2021, the Resolution in relation to the Signing of the Financial Service Agreement between the Company and Baowu Finance Company and the connected transaction was approved at the thirty-fifth meeting of the eighth session of the Board of the Company. The Financial Service Agreement agreed that, during the period from the date of consideration and approval at the general meeting of the Company to 31 December 2023: in respect to the comprehensive credit services, the maximum daily credit limit provided to the Company by Baowu Group Finance Co., Ltd. (“ Baowu Finance Company ”) would be RMB2 billion; in respect to the deposit service under the treasury management services, the maximum daily balance limit for deposit cash of deposit service provided to the Company by Baowu Finance Company would be RMB2 billion; in respect to the treasury management services (other than deposit service) as well as the other financial services, the maximum cap of the service charges for services provided to the Company by Baowu Finance Company would be RMB1 million (other than acceptance charge, settlement handling fee, handling fee for opening letter of credit and other fees charged by banks on behalf). On 1 April 2021, the Company and Baowu Finance Company entered into the Financial Service Agreement.

– 10 –

(3) Release of Share Pledge

On 12 January 2018, the Company received a notice from Chongqing Changshou Iron & Steel Company Limited (“ Changshou Iron & Steel ”) that Changshou Iron & Steel had pledged the 2,096,981,600 unrestricted tradable shares of the Company held by it to China Development Bank Corporation (“ CDB ”), with Changshou Iron & Steel as the pledger and CDB as the pledgee. The date of registration of the pledge was 11 January 2018.

On 30 March 2021, the Company received from China Securities Depository and Clearing Corporation Limited the Notice on Registration of the Release of Pledged Securities (《證券質押登記 解除通知書》), which stated that the registration of the pledge of 2,096,981,600 unrestricted tradable shares to CDB by Changshou Iron & Steel has been discharged. Time of pledge release is 24 March 2021. The accumulative number of pledged shares of the Company was zero after Changshou Iron & Steel released the above share pledge.

3.3 Undertakings not being fully performed during the reporting period

Applicable ✓ Not applicable

• 3.4 Warning and explanation on the forecast of any possible loss in accumulated net profit from the beginning of the year to the end of next reporting period or any material changes compared to the corresponding period of last year

✓ Applicable Not applicable

In the first quarter of 2021, as the Company seized the favorable opportunity of the recovery of the iron and steel market, the scale benefit of production and sales increased steadily, and the net profit attributable to the shareholders of the Company amounted to RMB1,092 million, representing a year-on-year increase of 26,078.10%. In view of this, it is expected that the accumulated net profit at the end of the next reporting period of the Company will increase significantly as compared to the corresponding period of last year.

Company Name Chongqing Iron & Steel Company Limited Legal Representative Liu Jianrong Date 29 April 2021

– 11 –

IV. APPENDICES

4.1 Financial statements

Consolidated Balance Sheet

31 March 2021

Prepared by: Chongqing Iron & Steel Company Limited

	Unit: RMB’000 Audit	type: unaudited
	31 March	31 December
Item	2021	2020
Current assets:
Cash and bank balance	3,673,465	4,943,231
Balances with clearing companies
Placements with banks and other financial
institutions
Held-for-trading financial assets
Derivative financial assets
Bills receivable
Accounts receivable	115,264	35,041
Receivables financing	2,264,930	2,068,546
Prepayments	895,160	534,516
Premiums receivable
Accounts receivable from reinsurers
Deposits receivable from reinsurers
Other receivables	13,822	18,013
Including: Interests receivable
Dividends receivable
Proceeds from financial assets purchased
under agreements to resell
Inventories	6,995,174	5,054,908
Contract assets
Held-for-sale assets
Non-current assets due within one	year
Other current assets	402,119	394,153
Total current assets	14,359,934	13,048,408

– 12 –

Item Non-current assets: Loans and advances granted Debt investments Other debt investments Long-term receivables Long-term equity investments Other equity instruments investments Other non-current financial assets Investment properties Fixed assets Construction in progress Biological assets for production Fuel assets Right-of-use assets Intangible assets Development expenses Goodwill Long-term deferred expenditures Deferred income tax assets Other non-current assets Total non-current assets Total assets	31 March 2021 51,237 5,000 16,676,243 3,663,684 4,004,335 2,391,602 353,908 373,624 131,468 125,560 27,776,661 42,136,595	31 December 2020 79,494 5,000 16,630,788 2,844,665 4,095,211 2,394,593 295,407 299,730 131,468 125,092
		26,901,448
		39,949,856

– 13 –

Item Current liabilities: Short-term borrowings Borrowings from central bank Placements from banks and other financial institutions Held-for-trading financial liabilities Derivative financial liabilities Bills payable Accounts payable Advances from customers Contract liabilities Disposal of repurchased financial assets Deposit taking and deposit in interbank market Customer deposits for trading in securities Customer deposits for underwriting Employee remuneration payable Taxes payable Other payables Including: Interests payable Dividends payable Handling charges and commissions payable Payable to reinsurers Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities	31 March 2021 1,385,055 2,140,183 3,627,877 2,507,375 256,824 35,184 1,001,138 1,952,007 325,959 13,231,602	31 December 2020 700,788 1,272,291 2,652,728 2,554,165 283,969 9,177 1,567,618 4,056,471 332,041
		13,429,248

– 14 –

Item Non-current liabilities: Deposits for insurance contracts Long-term borrowings Debentures payable Including: Preferential shares Perpetual bonds Lease liabilities Long-term payables Long-term employee remuneration payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	31 March 2021 435,000 995,848 2,946,099 2,685,914 164,714 38,309 1,176 503,430 7,770,490 21,002,092	31 December 2020 450,000 995,150 3,022,612 1,352,264 179,557 35,902 1,176 445,480
		6,482,141
		19,911,389

– 15 –

			31 March		31 December
Item			2021		2020
Owners’ equity (or Shareholders’ equity):
Paid-in capital (or share capital)			8,918,602		8,918,602
Other equity instruments
Including: Preferential shares
Perpetual bonds
Capital reserve			19,282,147		19,282,147
Less: Treasury stock			65,940		65,940
Other comprehensive income
Special reserve			25,808		22,184
Surplus reserve			606,991		606,991
General risk provision
Undistributed profit			-7,633,105		-8,725,517
Total equity attributable to	owners	of
the parent company (or shareholders’
equity)			21,134,503		20,038,467
Minority interests
Total owners’ equity (or shareholders’
equity)			21,134,503		20,038,467
Total liabilities and owners’	equity (or
shareholders’ equity)			42,136,595		39,949,856
Chairman of the Company:	Chief Financial Officer: Chief Accountant:
Liu Jianrong		Zou An Lei Xiaodan

– 16 –

31 March 2021

Balance Sheet of the Parent Company

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

Item Current assets: Cash and bank balance Held-for-trading financial assets Derivative financial assets Bills receivable Accounts receivable Receivables financing Prepayments Other receivables Including: Interests receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets	31 March 2021 3,665,281 111,661 2,264,930 995,821 55,897 6,956,566 394,700 14,444,856	31 December 2020 4,925,021 39,503 2,062,046 516,190 17,181 5,015,067 383,123
		12,958,131

– 17 –

Item Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments Other equity instruments investments Other non-current financial assets Investment properties Fixed assets Construction in progress Biological assets for production Fuel assets Right-of-use assets Intangible assets Development expenses Goodwill Long-term deferred expenditures Deferred income tax assets Other non-current assets Total non-current assets Total assets	31 March 2021 1,043,525 5,000 15,551,682 3,662,891 4,004,335 2,314,407 373,624 87,897 89,141 27,132,502 41,577,358	31 December 2020 917,104 5,000 15,705,686 2,844,665 4,095,211 2,329,901 299,730 87,653 87,173
		26,372,123
		39,330,254

– 18 –

Item Current liabilities: Short-term borrowings Held-for-trading financial liabilities Derivative financial liabilities Bills payable Accounts payable Advances from customers Contract liabilities Employee remuneration payable Taxes payable Other payables Including: Interests payable Dividends payable Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities	31 March 2021 1,381,202 2,140,183 3,630,484 2,507,374 256,677 30,907 998,487 1,650,727 325,959 12,922,000	31 December 2020 700,788 1,256,400 2,692,577 2,554,123 280,322 6,822 1,565,471 3,711,113 332,036
		13,099,652

– 19 –

		31 March		31 December
Item		2021		2020
Non-current liabilities:
Long-term borrowings		435,000		450,000
Debentures payable		995,848		995,150
Including: Preferential shares
Perpetual bonds
Lease liabilities		2,946,099		3,022,612
Long-term payables		2,570,833		1,125,491
Long-term employee remuneration
payable		164,714		179,557
Accrued liabilities
Deferred income		38,309		35,902
Deferred income tax liabilities
Other non-current liabilities		503,430		445,480
Total non-current liabilities		7,654,233		6,254,192
Total liabilities		20,576,233		19,353,844
Owners’ equity (or Shareholders’
equity):
Paid-in capital (or share capital)		8,918,602		8,918,602
Other equity instruments
Including: Preferential shares
Perpetual bonds
Capital reserve		19,313,090		19,313,090
Less: Treasury stock		65,940		65,940
Other comprehensive income
Special reserve		22,225		19,398
Surplus reserve		577,012		577,012
Undistributed profit		-7,763,864		-8,785,752
Total owners’ equity
(or shareholders’ equity)		21,001,125		19,976,410
Total liabilities and owners’	equity
(or shareholders’ equity)		41,577,358		39,330,254
Chairman of the Company:	Chief Financial Officer: Chief Accountant:
Liu Jianrong	Zou	An	Lei Xiaodan

– 20 –

Consolidated Income Statement January to March 2021

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

			First quarter	First quarter
Item			of 2021	of 2020
I.	Total	revenue from operations	9,978,422	5,178,323
	Including: Revenue from operations		9,978,422	5,178,323
		Interest income
		Premiums earned
		Income from fee and
		commission
II.	Total	operating costs	8,900,287	5,177,630
	Including: Operating costs		8,658,553	4,931,502
		Interest expenses
		Fee and commission expenses
		Surrender value
		Net expenditure for
		compensation payments
		Net drawing on deposits for
		insurance contracts
		Expenditures for insurance
		policy dividend
		Reinsurance costs
		Taxes and surcharges	36,154	40,884
		Selling expenses	18,800	26,476
		Administrative expenses	117,136	133,711
		R&D expenses
		Finance cost	69,644	45,057
		Including: Interest expenses	82,602	53,507
		Interest income	-26,634	-9,023
	Add:	Other income	13,735	592
		Gains from investment (loss is
		represented by “-”)		3,159
		Including: G ains from
		investment in
		associates and joint
		ventures

– 21 –

First quarter First quarter of 2021 of 2020

Item

	Gains from derecognition of
	financial assets measured at
	amortized cost
	Exchange gain (loss is
	represented by “-”)
	Income on hedging the net
	exposure (loss is represented
	by “-”)
	Gain from change in fair value
	(loss is represented by “-”)
	Credit impairment loss (loss is
	represented by “-”)
	Asset impairment loss (loss is
	represented by “-”)
	Gain on disposal of assets (loss
	is represented by “-”)
III.	Profit from operations (loss is
	represented by “-”)	1,091,870	4,444
	Add: Non-operating income	924	166
	Less: Non-operating expenses	382	280
IV.	Total profit (total loss is represented by
	“-”)	1,092,412	4,330
	Less: Income tax expense		157
V.	Net profit (net loss is represented by
	“-”)	1,092,412	4,173
	(I) Classified on a going concern basis
	1. Net profit from continuing
	operations (net loss is
	represented by “-”)	1,092,412	4,173
	2. Net profit from discontinued
	operations (net loss is
	represented by “-”)
	(II) Classified according to the ownership
	1. Net profit attributable to
	shareholders of the parent
	company (net loss is represented
	by “-”)	1,092,412	4,173
	2. Profit or loss attributable to
	minority shareholders (net loss is
	represented by “-”)

– 22 –

First quarter First quarter of 2021 of 2020

Item

VI. Other comprehensive income (net of tax)

• (I) Other comprehensive income (net of tax) attributable to owners of the parent company

• Other comprehensive income that will not be reclassified to profit or loss

  • (1) Changes in re-measurement of defined benefit plan

  • (2) Other comprehensive income accounted for using equity method that will not be reclassified to profit or loss

  • (3) Changes in fair value of other equity instruments investment

  • (4) Changes in fair value of the enterprise’s own credit risk

• Other comprehensive income that will be reclassified to profit or loss

  • (1) Ot her comprehensive income accounted for using equity method that will be reclassified to profit and loss

  • (2) Ch anges in fair value of other debt investments

  • (3) A mount of financial assets reclassified to other comprehensive income

  • (4) Pr ovision for credit impairment of other debt investments

  • (5) Hedging reserve for cash flows

  • (6) Ex change difference on translation of foreign currency financial statements

  • (7) Others

• (II) Other comprehensive income (net of tax) attributable to minority shareholders

– 23 –

			First quarter	First quarter	First quarter
Item			of 2021		of 2020
VII. Total comprehensive income			1,092,412		4,173
(I)	Total comprehensive income
	attributable to owners	of the	parent
	company		1,092,412		4,173
(II)	Total comprehensive income
	attributable to minority
	shareholders
VIII. Earnings per share:
(I)	Basic earnings per share
	(RMB per share)			0.12	0.0005
(II)	Diluted earnings per share
	(RMB per share)			0.12	0.0005
Chairman of the Company:		Chief	Financial Officer:	Chief Accountant:
	Liu Jianrong		Zou An		Lei Xiaodan

– 24 –

Income Statement of the Parent Company

January to March 2021

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

		First quarter	First quarter
Item		of 2021	of 2020
I.	Revenue from operations	9,978,832	5,187,760
	Less: Operating costs	8,740,579	4,941,631
	Taxes and surcharges	33,586	40,848
	Selling expenses	18,801	26,444
	Administrative expenses	110,202	133,712
	R&D expenses
	Finance cost	60,270	45,061
	Including: Interest expenses	74,724	53,507
	Interest income	-26,604	-9,018
	Add: Other income	991	592
	Gains from investment (loss is
	represented by “-”)		3,159
	Including: Gains from investment in
	associates and joint ventures
	Gains from derecognition of
	financial assets measured at
	amortized cost
	Income on hedging the net exposure
	(loss is represented by “-”)
	Gain from change in fair value (loss
	is represented by “-”)
	Credit impairment loss (loss is
	represented by “-”)
	Asset impairment loss (loss is
	represented by “-”)
	Gain on disposal of assets (loss is
	represented by “-”)

– 25 –

	First quarter	First quarter
Item	of 2021	of 2020
II. Profit from operations (loss is
represented by “-”)	1,016,385	3,815
Add: Non-operating income	782	166
Less: Non-operating expenses	2	280
III. Total profit (total loss is represented
by “-”)	1,017,165	3,701
Less: Income tax expense
IV. Net profit (net loss is represented by
“-”)	1,017,165	3,701
(I) Net profit from continuing operations
(net loss is represented by “-”)	1,017,165	3,701
(II) Net profit from discontinued
operations (net loss is represented
by “-”)

V. Other comprehensive income

(net of tax)

• (I) Other comprehensive income that will not be reclassified to profit or loss

• Changes in re-measurement of defined benefit plan

• Other comprehensive income accounted for using equity method that will not be reclassified to profit or loss

• Changes in fair value of other equity instruments investment

• Changes in fair value of the enterprise’s own credit risk

– 26 –

First quarter First quarter of 2021 of 2020

Item		of	2021	of 2020
(II)	Other comprehensive income that
	will be reclassified to profit or loss
	1. Other comprehensive income
	accounted for using equity
	method that will be reclassified
	to profit and loss
	2. Changes in fair value of other
	debt investments
	3. Amount of financial assets
	reclassified to other
	comprehensive income
	4. Provision for credit impairment of
	other debt investments
	5. Hedging reserve for cash flows
	6. Exchange difference on
	translation of foreign currency
	financial statements
	7. Others
VI. Total comprehensive income		1,017,165		3,701
VII. Earnings per share:
(I)	Basic earnings per share (RMB per
	share)		0.11	0.0004
(II)	Diluted earnings per share (RMB	per
	share)		0.11	0.0004
Chairman of the Company: Chief Financial Officer:			Chief Accountant:
	Liu Jianrong	Zou An		Lei Xiaodan

– 27 –

Consolidated Cash flow Statement

January to March 2021

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

Item I. Cash flow from operating activities: Cash received from sale of goods and rendering of services Net increase in customer and interbank deposits Net increase in borrowings from central bank Net increase in placements from other financial institutions Cash received from premiums under original insurance contracts Net cash received from reinsurance business Net increase in deposits of policy holders and investment Cash received from interest, fee and commission Net increase in placements from banks and other financial institutions Net increase in capital from repurchase business Net cash received from trading in securities Refunds of taxes Other cash received relating to operating activities Sub-total of cash inflow from operating activities	First quarter of 2021 9,484,800 7,831 41,554 9,534,185	First quarter of 2020 4,152,133 85,483 4,237,616

– 28 –

Item Cash paid for goods purchased and service received Net increase in customer loans and advances Net increase in deposit in central bank and interbank deposit Cash paid for compensation payments under original insurance contracts Net increase in placements with banks and other financial institutions Cash paid for interest, fee and commission Cash paid for insurance policy dividend 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 outflow from operating activities Net cash flow from operating activities II. Cash flows from investment activities: Cash received from disposal of investments Cash received from return on investments Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating entities Other cash received relating to investing activities Sub-total of cash inflow from investing activities	First quarter of 2021 10,165,145 341,130 27,166 31,833 10,565,274 -1,031,089	First quarter of 2020 3,983,601 229,884 141,908 95,298 4,450,691 -213,075 200,000 3,159 203,159

– 29 –

Item Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets Cash paid for investments Net increase in pledged loans Net cash paid for acquiring subsidiaries and other operating entities Other cash paid relating to investing activities Sub-total of cash outflow from investing activities Net cash flow from investing activities III. Cash flow from financing activities: Cash received from investments Including: Proceeds received by subsidiaries from minority shareholders’ investment Cash received from borrowings Other cash received relating to financing activities Sub-total of cash inflow from financing activities	First quarter of 2021 89,347 114,449 203,796 -203,796 1,380,000 1,757,950 3,137,950	First quarter of 2020 33,000 33,000 170,159 500,000 1,052,500 1,552,500

– 30 –

		First quarter	First quarter
Item		of 2021	of 2020
	Cash paid for repayment of debts	3,054,910
	Cash paid for distribution of dividends
	and profits or for interest expenses	107,166	41,128
	Including: Dividend and profit paid by
	subsidiaries to minority shareholders
	Other cash paid relating to financing
	activities	220,474	85,000
	Sub-total of cash outflow from
	financing activities	3,382,550	126,128
	Net cash flow from financing activities	-244,600	1,426,372
IV.	Effect of fluctuation in exchange rates
	on cash and cash equivalents	1,754
V.	Net increase in cash and cash
	equivalents	-1,477,731	1,383,456
	Add: Balance of cash and cash equivalents
	at the beginning of the period	4,698,099	1,595,323
VI.	Balance of cash and cash equivalents at
	the end of the period	3,220,368	2,978,779
Chairman of the Company: Chief Financial Officer: Chief Accountant:
	Liu Jianrong Zou	An	Lei Xiaodan

– 31 –

Cash Flow Statement of the Parent Company

January to March 2021

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

Item I. Cash flow from operating activities: Cash received from sale of goods and rendering of services Refunds of taxes Other cash received relating to operating activities Sub-total of cash inflow from operating activities Cash paid for goods purchased and service received 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 outflow from operating activities Net cash flow from operating activities	First quarter of 2021 9,466,310 41,355 9,507,665 10,465,361 323,420 7,476 31,594 10,827,851 -1,320,186	First quarter of 2020 4,037,899 85,079
		4,122,978
		3,870,743 229,884 141,619 94,875
		4,337,121
		-214,143

– 32 –

Item II. Cash flows from investment activities: Cash received from disposal of investments Cash received from return on investments Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating entities Other cash received relating to investing activities Sub-total of cash inflow from investing activities Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets Cash paid for investments Net cash paid for acquiring subsidiaries and other operating entities Other cash paid relating to investing activities Sub-total of cash outflow from investing activities Net cash flow from investing activities	First quarter of 2021 82,153 114,449 196,602 -196,602	First quarter of 2020 200,000 3,159
		203,159
		33,000
		33,000
		170,159

– 33 –

	First quarter		First quarter
Item	of 2021		of 2020
III. Cash flow from financing activities:
Cash received from investments
Cash received from borrowings	1,380,000		500,000
Other cash received relating to financing
activities	1,757,950		1,052,500
Sub-total of cash inflow from financing
activities	3,137,950		1,552,500
Cash paid for repayment of debts	2,960,000
Cash paid for distribution of dividends
and profits or for interest expenses	94,540		41,128
Other cash paid relating to financing
activities	45,663		85,000
Sub-total of cash outflow from
financing activities	3,100,203		126,128
Net cash flow from financing activities	37,747		1,426,372
IV. Effect of fluctuation in exchange rates
on cash and cash equivalents	1,754
V. Net increase in cash and cash
equivalents	-1,477,287		1,382,388
Add: Balance of cash and cash equivalents
at the beginning of the period	4,689,471		1,591,312
VI. Balance of cash and cash equivalents at
the end of the period	3,212,184		2,973,700
Chairman of the Company: Chief Financial Officer: Chief Accountant:
Liu Jianrong Zou	An	Lei Xiaodan

– 34 –

• 4.2 Adjustments to relevant items in the opening financial statements upon initial application of the New Lease Standard Since 2021

Applicable ✓ Not applicable

• 4.3 Retrospective adjustments to comparative figures of previous periods upon initial application of the New Lease Standard Since 2021

Applicable ✓ Not applicable

• 4.4 Auditor’s report

Applicable ✓ Not applicable

By order of the Board Chongqing Iron & Steel Company Limited Liu Jianrong Chairman

Chongqing, the PRC, 30 April 2021

As at the date of this announcement, the Directors of the Company are Mr. Liu Jianrong (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).

– 35 –