XD Inc. — Interim / Quarterly Report 2022

Oct 30, 2022

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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THIRD QUARTERLY REPORT OF 2022

The board of directors (the “ Board ”) of Chongqing Iron & Steel Company Limited (the “ Company ”) and all directors of the Company warrant that there are no false representations, misleading statements contained in or material omissions from this announcement and accept legal responsibility for the truthfulness, accuracy and completeness of the contents thereof.

IMPORTANT NOTICE:

The Board, the supervisory committee and the directors, supervisors and senior management of 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.

The legal representative, the chief accountant and the head of the accounting department (accounting officer) of the Company warrant the truthfulness, accuracy and completeness of the financial information contained in the quarterly report.

Whether the third quarterly financial statements have been audited

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– 1 –

I. MAJOR FINANCIAL DATA

(I) Key accounting figures and financial indicators

Unit: RMB’000

					Increase/
					decrease for the
					period from
					the beginning
				For the period	of the year
		Increase/		from the	to the end of
		decrease		beginning of	the Reporting
		over the		the year to	Period over the
	For the	corresponding		the end of	corresponding
	Reporting		period	the Reporting	period
Item	Period	last year		Period	last year
			(%)		(%)
Revenue from operations	7,649,896		-15.88	25,666,072	-19.20
Net profit attributable to the
shareholders of the Company	-787,733	-531.21		-271,317	-109.42
Net profit attributable to shareholders
of the Company after non-recurring
items	-833,404	-558.09		-286,785	-109.51
Net cash flow from operating
activities	N/A		N/A	1,101,822	-44.66
Basic earnings per share (RMB per
share)	-0.09	-550.00		-0.03	-109.29
Diluted earnings per share (RMB per
share)	-0.09	-550.00		-0.03	-109.29
					Decreased
		Decreased by			by 14.60
Weighted average return on net assets		4.30 percentage			percentage
(%)	-3.50		points	-1.22	points
	As at the end of		As at the end		Changes from
	the Reporting		of	the previous	the end of the
		Period		year	previous year
					(%)
Total assets	39,645,837			42,995,956	-7.79
Owners’ equity attributable to
shareholders of the Company	22,100,841			22,375,209	-1.23

Note: The “Reporting Period” refers to the three months from 1 June 2022 to 30 September 2022, and the same below.

– 2 –

(II) Non-recurring items and amounts

Unit: RMB’000

Item Gains or losses on disposal of non-current assets 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 Reporting Period – 51,856 1,779 -7,964 45,671	Amount for the period from the beginning of the year to the end of the Reporting Period -7 54,982 3,988 -43,495 15,468

Explanation on defining any non-recurring items listed under the Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public – Non-recurring Gains/Losses as recurring items.

Applicable ✓ Not applicable

– 3 –

(III) Changes in key accounting figures and financial indicators and the reasons thereof

✓ Applicable Not applicable Item Change Reasons (%) Net profit attributable -109.42 Mainly due to the decrease to shareholders of the in sales volume and selling Company price of commodity billets and the increase in the price of raw materials and fuels Net profit attributable -109.51 Mainly due to the decrease to shareholders of the in sales volume and selling Company after nonprice of commodity billets recurring items and the increase in the price of raw materials and fuels Net cash flows from -44.66 Mainly due to the significant operating activities decrease in net profit Basic earnings per share -109.29 Mainly due to the significant (RMB per share) decrease in net profit Diluted earnings per share -109.29 Mainly due to the significant (RMB per share) decrease in net profit

– 4 –

II. INFORMATION ON SHAREHOLDERS

• (I) Total number of ordinary shareholders, total number of preferred shareholders with restored voting rights and shareholdings of the top ten shareholders

Unit: shares

Total number of ordinary 178,939 Total number of preferred Nil shareholders as at the shareholders with restored end of the Reporting voting rights (if any) as at Period the end of the Reporting Period

Shareholdings of top 10 shareholders

				Number	Pledged, tagged	Pledged, tagged
				of shares	or frozen Share
				held with
	Type of	Number of	Shareholding	trading
Name of shareholder	shareholder	shares held	percentage	restrictions	Status	Number
			(%)
Chongqing Changshou Iron &	Domestic non-	2,096,981,600	23.51	0	Nil	0
Steel Company Limited	state-owned legal
	person
HKSCC NOMINEES LIMITED	Foreign legal person	532,291,221	5.97	0	Unknown	–
Chongqing Qianxin Group Co.,	State-owned legal	427,195,760	4.79	0	Pledged	427,190,070
Ltd.	person
Chongqing Rural Commercial	State-owned legal	289,268,939	3.24	0	Nil	0
Bank Co., Ltd.	person
Chongqing Guochuang	State-owned legal	278,288,059	3.12	0	Nil	0
Investment and Management	person
Co., Ltd.
Bank of Chongqing Co., Ltd.	State-owned legal	226,042,920	2.53	0	Nil	0
	person
Baowu Group Zhongnan Steel	State-owned legal	224,831,743	2.52	0	Nil	0
Co., Ltd.	person
Industrial Bank Co., Ltd.	Unknown	219,633,096	2.46	0	Nil	0
Chongqing Branch
Agricultural Bank of China
Limited
Chongqing Branch	State-owned legal	216,403,628	2.43	0	Nil	0
	person
China Shipbuilding Industry	State-owned legal	211,461,370	2.37	0	Nil	0
Complete Logistics Co., Ltd.	person
(中船工業成套物流有限
公司)

– 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.

• Bank of Chongqing Co., Ltd.

Baowu Group Zhongnan Steel Co., Ltd.

Industrial Bank Co., Ltd. Chongqing Branch

• Agricultural Bank of China Limited Chongqing Branch

• China Shipbuilding Industry Complete Logistics Co., Ltd. ( 中船工業成套 物流有限公司 )

Number of shares held not subject to trading Class and number of shares moratorium Class Number 2,096,981,600 RMB-denominated 2,096,981,600 ordinary shares 532,291,221 Overseas listed 532,291,221 foreign 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 226,042,920 RMB-denominated 226,042,920 ordinary shares 224,831,743 RMB-denominated 224,831,743 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

• Description of connected relationship and acting in concert among the above shareholders

• D e s c r i p t i o n o f i n v o l v e m e n t i n securities margin financing, short selling and refinancing (if any) by top 10 shareholders and top 10 holders of shares not subject to trading moratorium

Chongqing Changshou Iron & Steel Company Limited is the controlling shareholder of the Company, Chongqing Changshou Iron & Steel Company Limited and Baowu Group Zhongnan Steel Co., Ltd. are under common control by China Baowu Steel Group Corporation Limited, a de facto controller of the Company, thus the two are related parties, and has no connected relationship with the other 8 shareholders and they are not parties acting in concert as defined under the Administrative Measures for Management of Information Disclosure of Changes in Shareholdings of Shareholders of Listed Companies. The Company is also not aware of whether there is any connected relationship among the other 8 shareholders or whether they are parties acting in concert

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III. OTHER REMINDERS

Other important information about the Company’s operations during the Reporting Period that should be brought to the attention of investors

Applicable ✓ Not applicable

– 6 –

IV. QUARTERLY FINANCIAL STATEMENTS

(I) Type of audit opinion

Applicable ✓ Not applicable

(II) Financial statements

Consolidated Balance Sheet 30 September 2022

Prepared by: Chongqing Iron & Steel Company Limited

	Unit: RMB’000 Audit	type: unaudited
Item	30 September 2022	31 December 2021
Current assets:
Cash and bank balance	3,293,945	6,410,645
Balances with clearing companies
Placements with banks and other financial
institutions
Held-for-trading financial assets	–	600,000
Derivative financial assets
Bills receivable
Accounts receivable	60,110	53,885
Receivables financing	989,744	1,536,724
Prepayments	918,699	756,710
Premiums receivable
Accounts receivable from reinsurers
Deposits receivable from reinsurers
Other receivables	69,803	52,279
Including: Interests receivable
Dividends receivable
Proceeds from financial assets purchased under
agreements to resell
Inventories	3,624,291	3,840,198
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets	247,915	100,221
Total current assets	9,204,507	13,350,662

– 7 –

30 September 2022

31 December 2021

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	110,192 5,000 23,622,810 3,200,734 421,134 2,381,479 328,055 246 142,252 229,428 30,441,330 39,645,837	58,160 5,000 21,891,662 4,174,369 518,318 2,384,882 328,055 271 142,568 142,009
		29,645,294
		42,995,956

– 8 –

30 September 2022 31 December 2021

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	1,606,704 594,366 3,477,568 3,064,296 99,701 38,362 2,211,222 1,980,985 398,358 13,471,562	2,629,734 1,261,138 4,567,985 2,185,095 112,844 16,744 2,770,510 1,582,635 284,736
		15,411,421

– 9 –

30 September 2022 31 December 2021

Item

Non-current liabilities:
Deposits for insurance contracts
Long-term borrowings		1,546,800		1,792,800
Debentures payable		–		498,434
Including: Preferential shares
Perpetual bonds
Lease liabilities		323,533		408,135
Long-term payables		2,029,792		2,301,299
Long-term employee remuneration payable		109,672		144,977
Accrued liabilities
Deferred income		57,225		56,903
Deferred income tax liabilities		6,412		6,778
Other non-current liabilities
Total non-current liabilities		4,073,434		5,209,326
Total liabilities		17,544,996		20,620,747
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
Other comprehensive income
Special reserve		15,542		18,593
Surplus reserve		606,991		606,991
General risk provision
Undistributed profit		-6,722,441		-6,451,124
Total equity attributable to owners of the parent
company (or shareholders’ equity)		22,100,841		22,375,209
Minority interests
Total owners’ equity (or shareholders’ equity)		22,100,841		22,375,209
Total liabilities and owners’ equity (or
shareholders’ equity)		39,645,837		42,995,956
		Head of the
Legal representative:	Chief accountant:	accounting department:
Zhang Wenxue	Zou An	Lei Xiaodan

– 10 –

Consolidated Income Statement January to September 2022

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

	First three	First three
	quarters of 2022	quarters of 2021
	(January-	(January-
Item	September)	September)
I. Total revenue from operations	25,666,072	31,764,218
Including: Revenue from operations	25,666,072	31,764,218
Interest income
Premiums earned
Income from fee and commission
II. Total operating costs	26,008,734	28,758,515
Including: Operating costs	25,091,695	27,768,610
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	109,975	124,747
Selling expenses	54,742	64,387
Administrative expenses	256,336	375,378
R&D expenses	196,029	117,372
Finance cost	299,957	308,021
Including: Interest expenses	225,979	378,512
Interest income	49,023	75,764

– 11 –

		First three	First three
		quarters of 2022	quarters of 2021
		(January-	(January-
Item		September)	September)
Add: Other income		79,745	40,264
	Gains from investment (loss is represented
	by “-”)	31,739	310
	Including: Ga ins from investment in
	associates and joint ventures
	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. Pr	ofit from operations (loss is represented
	by “-”)	-231,178	3,046,277
Add: Non-operating income		4,212	1,511
Less: Non-operating expenses		43,950	168,684
IV. Total profit (total loss is represented by “-”)		-270,916	2,879,104
Less: Income tax expense		401	-617
V. Net profit (net loss is represented by “-”)		-271,317	2,879,721
(I)	Classified on a going concern basis
	1. Ne t profit from continuing operations (net
	loss is represented by “-”)	-271,317	2,879,721
	2. Ne t profit from discontinued operations (net
	loss is represented by “-”)
(II) Classified according to the ownership
	1. Ne t profit attributable to shareholders
	of the parent company (net loss is
	represented by “-”)	-271,317	2,879,721
	2. Pr ofit or loss attributable to minority
	shareholders (net loss is represented
	by “-”)

– 12 –

Item

First three First three quarters of 2022 quarters of 2021 (January- (January- September) September)

VI. Other comprehensive income (net of tax)

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

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

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

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

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

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

• Ot her 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) Am ount 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) Ot her comprehensive income (net of tax) attributable to minority shareholders

– 13 –

			First three	First three
		quarters of 2022		quarters of 2021
			(January-	(January-
Item			September)	September)
VII. Total comprehensive income			-271,317	2,879,721
(I)	To tal comprehensive income attributable to
	owners of the parent company		-271,317	2,879,721
(II) To tal comprehensive income attributable to
	minority shareholders
VIII. Earnings per share:
(I)	Basic earnings per share (RMB per share)		-0.03	0.32
(II)	Diluted earnings per share (RMB per share)		-0.03	0.32
			Head of the
Legal representative:		Chief accountant:	accounting department:
	Zhang Wenxue	Zou An	Lei Xiaodan

– 14 –

Consolidated Statement of Cash Flows

January-September 2022

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

Item I. Cash flows 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 contract Net cash received from reinsurance business Net increase in deposits of policy holders and investment Cash received from interest, fees and commissions 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 inflows from operating activities	First three quarters of 2022 (January- September) 27,788,389 60,270 134,769 27,983,428	First three quarters of 2021 (January- September) 29,286,413 38,356 121,058 29,445,827

– 15 –

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 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 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 inflows from investing activities	First three quarters of 2022 (January- September) 25,217,000 1,159,362 426,066 79,178 26,881,606 1,101,822 600,000 28,607 628,607	First three quarters of 2021 (January- September) 25,949,584 1,142,787 198,421 163,881 27,454,673 1,991,154 – 310 310

– 16 –

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 acquisition of subsidiaries and other operating entities Other cash paid relating to investing activities Sub-total of cash outflows from investing activities Net cash flows from investing activities III. Cash flows from financing activities: Cash received from investments Including: Pr oceeds received by subsidiaries from minority shareholders’ investment Cash received from borrowings Other cash received relating to financing activities Sub-total of cash inflows from financing activities	First three quarters of 2022 (January- September) 2,718,249 48,900 – 2,767,149 -2,138,542 2,433,694 – 2,433,694	First three quarters of 2021 (January- September) 3,086,962 550,000 114,449 3,751,411 -3,751,101 3,848,065 1,892,392 5,740,457

– 17 –

		First three	First three
	quarters of 2022		quarters of 2021
		(January-	(January-
Item		September)	September)
Cash repayments of borrowings		3,513,265	4,272,838
Cash paid for distribution of dividends	or profits,
and for interest expenses		248,365	244,524
Including: Di vidend and profit paid by
subsidiaries to minority
shareholders
Other cash paid relating to financing activities		538,225	87,903
Sub-total of cash outflows from financing
activities		4,299,855	4,605,265
Net cash flows from financing activities		-1,866,161	1,135,192
IV. Ef fect of fluctuations in exchange rates on cash
and cash equivalents		17,717	9,595
V. Net increase in cash and cash equivalents		-2,885,164	-615,160
Add: Ca sh and cash equivalents at the beginning
of the period		5,832,238	4,698,090
VI. Ba lance of cash and cash equivalents at the
end of the period		2,947,074	4,082,930
		Head of the
Legal representative: Chief accountant:		accounting department:
Zhang Wenxue	Zou An	Lei Xiaodan

– 18 –

30 September 2022

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	30 September 2022 3,293,789 – 94,227 989,744 976,313 183,382 3,602,413 230,311 9,370,179	31 December 2021 6,410,521 600,000 69,402 1,536,724 833,678 180,813 3,815,186 98,251
		13,544,575

– 19 –

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	30 September 2022 1,102,480 5,000 22,582,949 3,200,734 421,134 2,309,379 246 121,492 229,413 29,972,827 39,343,006	31 December 2021 1,050,448 5,000 20,791,030 4,175,296 518,318 2,307,776 271 121,492 102,289
		29,071,920
		42,616,495

– 20 –

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 Non-current liabilities: 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	30 September 2022 1,606,704 594,366 3,429,156 3,064,259 98,302 34,580 2,171,842 1,980,904 398,354 13,378,467 1,546,800 – 323,533 2,029,792 109,672 57,225 4,067,022 17,445,489	31 December 2021 2,629,734 1,261,138 4,676,051 2,185,095 108,454 13,915 2,690,068 1,355,853 284,736
		15,205,044
		1,792,800 498,434 408,135 2,301,299 144,977 56,903
		5,202,548
		20,407,592

– 21 –

		30	September		31 December
Item			2022		2021
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
Other comprehensive income
Special reserve			8,327		13,365
Surplus reserve			577,012		577,012
Undistributed profit			-6,919,514		-6,613,166
Total owners’ equity
(or shareholders’ equity)			21,897,517		22,208,903
Total liabilities and owners’ equity
(or shareholders’ equity)			39,343,006		42,616,495
Legal representative:	Chief accountant:		Head of the
			accounting department:
Zhang Wenxue	Zou An		Lei Xiaodan

– 22 –

Income Statement of the Parent Company

January to September 2022

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

	First three	First three
	quarters of 2022	quarters of 2021
	(January	(January
Item	to September)	to September)
I. Revenue from operations	26,185,894	31,767,278
Less: Operating costs	25,644,811	27,967,286
Taxes and surcharges	100,810	118,108
Selling expenses	54,742	64,387
Administrative expenses	245,977	347,321
R&D expenses	196,029	117,373
Finance cost	293,726	285,877
Including: Interest expenses	219,695	356,358
Interest income	48,915	75,726
Add: Other income	51,018	4,951
G ains from investment (loss is
represented by “-”)	31,739	310
In cluding: G ains from investment
in associates and
joint ventures
G ains from
derecognition of
financial assets
measured at
amortized cost
In come on hedging the
net exposure (loss is
represented by “-”)
G ain from change in
fair value (loss is
represented by “-”)
C redit impairment loss
(loss is represented
by “-”)
A sset impairment loss
(loss is represented
by “-”)
G ain on disposal
of assets (loss is
represented by “-”)

– 23 –

	First three	First three
	quarters of 2022	quarters of 2021
	(January	(January
Item	to September)	to September)
II. Pr ofit from operations (loss is
represented by “-”)	-267,444	2,872,187
Add: Non-operating income	4,138	1,309
Less: Non-operating expenses	43,042	140,365
III. To tal profit (total loss is
represented by “-”)	-306,348	2,733,131
Less: Income tax expense
IV. Ne t profit (net loss is represented
by “-”)	-306,348	2,733,131
(I) Ne t profit from continuing
operations (net loss is
represented by “-”)	-306,348	2,733,131
(II)Ne t profit from discontinued
operations (net loss is
represented by “-”)

V.Other comprehensive income

(net of tax)

(I) Ot her comprehensive income that will not be reclassified to profit or loss

1. C hanges in re-measurement of defined benefit plan

2. O ther comprehensive income accounted for using equity method that will not be reclassified to profit or loss

3. C hanges in fair value of other equity instruments investment

4. C hanges in fair value of the enterprise’s own credit risk

– 24 –

First three First three quarters of 2022 quarters of 2021 (January (January to September) to September)

Item

(II) Ot her comprehensive income that	(II) Ot her comprehensive income that	(II) Ot her 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.	He dging reserve for cash
		flows
	6.	Ex change difference on
		translation of foreign
		currency financial
		statements
	7.	Others
VI.	Total comprehensive income		-306,348	2,733,131
VII.	Earnings per share:
	(I) Ba sic earnings per share
		(RMB per share)	-0.03	0.31
	(II) Di luted earnings per share
		(RMB per share)	-0.03	0.31
Legal representative: Chief accountant:			Head	of the
			accounting department:
	Zhang Wenxue Zou An		Lei Xiaodan

– 25 –

Cash Flow Statement of the Parent Company

January to September 2022

Prepared by: Chongqing Iron & Steel Company Limited

Unit: RMB’000 Audit type: unaudited

Item First three quarters of 2022 (January to September) I. Cash flow from operating activities: Cash received from sale of goods and rendering of services 27,784,286 Refunds of taxes 47,500 Other cash received relating to operating activities 93,487 Sub-total of cash inflow from operating activities 27,925,273 Cash paid for goods purchased and service received 25,521,816 Cash paid to and on behalf of employees 1,115,840 Cash paid for all types of taxes 369,029 Other cash paid relating to operating activities 51,078 Sub-total of cash outflow from operating activities 27,057,763 Net cash flow from operating activities 867,510

First three quarters of 2021 (January to September) 29,264,688 – 120,675 29,385,363 26,469,749 1,093,708 155,681 161,087 27,880,225 1,505,138

– 26 –

Item First three quarters of 2022 (January to September) II. Cash flows from investment activities: Cash received from disposal of investments 600,000 Cash received from return on investments 28,607 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 628,607 Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets 2,718,249 Cash paid for investments 48,900 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 2,767,149 Net cash flow from investing activities -2,138,542

First three quarters of 2021 (January to September) – 310 310 3,079,762 550,000 114,449 3,744,211 -3,743,901

– 27 –

Item First three quarters of 2022 (January to September) III.Ca sh flow from financing activities: Cash received from investments Cash received from borrowings 2,433,694 Other cash received relating to financing activities – Sub-total of cash inflow from financing activities 2,433,694 Cash paid for repayment of debts 3,513,265 Cash paid for distribution of dividends and profits or for interest expenses 239,810 Other cash paid relating to financing activities 312,500 Sub-total of cash outflow from financing activities 4,065,575 Net cash flow from financing activities -1,631,881

First three quarters of 2021 (January to September) 3,848,065 1,892,392 5,740,457 3,813,547 216,933 87,903 4,118,383 1,622,074

– 28 –

		First three		First three
	quarters of 2022			quarters of 2021
	(January to			(January to
Item	September)			September)
IV. E ffect of fluctuation in exchange
rates on cash and cash equivalents		17,717		9,595
V. N et increase in cash and	cash
equivalents		-2,885,196		-607,094
Add: B alance of cash and	cash
equivalents at the beginning
of the period		5,832,114		4,689,461
VI. Balance of cash and cash
equivalents at the end of	the period	2,946,918		4,082,367
		Head of the
Legal representative: Chief accountant:		accounting department:
Zhang Wenxue	Zou An	Lei Xiaodan

Adjustments to the opening financial statements upon initial application of the New Accounting Standard or Interpretations of Standard since 2022

Applicable ✓ Not Applicable

By order of the Board Chongqing Iron & Steel Company Limited Zou An Secretary to the Board

Chongqing, the PRC, 31 October 2022

As at the date of this announcement, the Directors of the Company are: Mr. Zhang Wenxue (Executive Director), Mr. Xie Zhixiong (Executive Director), Mr. Zou An (Executive Director), Mr. Song De An (Non-executive Director), Mr. Lai Xiaomin (Non-executive Director), Mr. Zhou Ping (Non-executive Director), Mr. Sheng Xuejun (Independent Non-executive Director), Mr. Zhang Jinruo (Independent Non-executive Director) and Mr. Guo Jiebin (Independent Non-executive Director).

– 29 –