XD Inc. — Major Shareholding Notification 2021

Sep 23, 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.

==> picture [399 x 63] intentionally omitted <==

INDICATIVE ANNOUNCEMENT ON CHANGES IN SHAREHOLDERS’ EQUITY

This announcement is made by the board of directors (the “ Board ”) of Chongqing Iron & Steel Company Limited (the “ Company ”) pursuant to Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

IMPORTANT NOTES:

• The change in equity relates to an increase in shareholding and does not trigger a general offer.

• The change in equity did not lead to any changes of the controlling shareholder and the de facto controller of the Company.

I. GENERAL INFORMATION ABOUT THE CHANGE IN EQUITY

On 23 September 2021, the Company received the Notice on Change in De Facto Controller’s Equity (《關於實際控制人權益變動的通知》) from China Baowu Steel Group Corporation Limited (“ China Baowu ”), the de facto controller, and was informed that on 22 September 2021, China Baowu acquired, by way of block trading, 129,815,901 shares of the Company, which were held by Chongqing Huanya Building Materials Co., Ltd. ( 重慶環亞建材有限 公司 ) and accounted for 1.46% of the total share capital of the Company, at a transaction price of RMB2.62 per share.

– 1 –

Prior to the change in equity, China Baowu, as the de facto controller of the Company, indirectly controlled 2,096,981,600 shares of the Company, accounting for 23.51% of the total share capital of the Company, through directly holding 40% equity interest in Chongqing Changshou Iron & Steel Company Limited (“ Changshou Iron & Steel ”) and obtaining control over Changshou Iron & Steel by entering into an acting in concert agreement with Chongqing Strategic Emerging Equity Investment Fund Partnership (Limited Partnership). Upon the change in equity, China Baowu will control a total of 2,226,797,501 shares of the Company, accounting for 24.97% of the total share capital of the Company, of which China Baowu will directly hold 1.46% and indirectly control 23.51%.

II. OTHER INFORMATION

1. The change in equity did not lead to any changes in the controlling shareholder and the de facto controller of the Company.

2. The change in equity does not involve the information disclosure obligor’s disclosure of equity change report, summary of acquisition report, summary of takeover offer report and other relevant matters.

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

Chongqing, the PRC, 24 September 2021

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).

– 2 –