Defined Contribution Plan - Chongqing Iron & Steel Company reported no forfeited contributions under its defined contribution plan as of December 31, 2020[1] - The company confirmed that there were no forfeited contributions available to reduce current contribution levels[1] - The defined contribution plan does not involve any employee contributions being forfeited[1] - The company is compliant with the Hong Kong Stock Exchange listing rules regarding the disclosure of defined contribution plans[1] Announcement Details - The announcement serves as a supplementary report to the annual report published on April 27, 2021[1] - The announcement was made by the company secretary, Zou An, on November 5, 2021[1] - The company emphasizes the accuracy and completeness of the information provided in the announcement[1] Board of Directors - The board of directors remains unchanged as of the announcement date[1] - The board of directors includes both executive and independent non-executive members[1] Financial Information - The financial information and content in the annual report remain consistent and unchanged[1]

Financial Performance - The company's operating revenue for the first half of 2020 was RMB 10,927.37 million, a decrease of 4.84% compared to the same period last year[16]. - Net profit attributable to shareholders of the listed company was RMB 121.36 million, down 80.29% year-on-year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 107.79 million, a decline of 81.70% compared to the previous year[16]. - Basic earnings per share decreased by 85.71% to CNY 0.01 compared to CNY 0.07 in the same period last year[18]. - Weighted average return on equity dropped by 2.65 percentage points to 0.62% from 3.27% year-on-year[18]. - The company's operating revenue decreased by 4.84% to RMB 10,927.37 million, while the main business income fell by 4.94% to RMB 10,876.76 million[30][32]. - The company achieved a profit of RMB 121 million, down 80.33% year-on-year, primarily due to a reduction in sales prices and rising raw material costs[32]. - The total revenue for the company was RMB 10,875,755 thousand, with an overall gross margin of 5.14%, indicating a slight decline in performance compared to the previous year[42]. Cash Flow and Assets - The net cash flow from operating activities was RMB 82.59 million, a decrease of 6.59% from the same period last year[16]. - The company's cash and cash equivalents increased to RMB 3,208,632 thousand, representing 11.21% of total assets, up from 6.61% in the previous period[43]. - The company's cash flow from financing activities increased by 180.78% to RMB 1,039.51 million, attributed to increased financing[30][31]. - The total assets at the end of the reporting period amounted to RMB 5,067,231 thousand, up from RMB 4,698,625 thousand at the end of the previous period[45]. - The company's total liabilities reached RMB 9,091,067 thousand, compared to RMB 7,579,723 thousand, marking an increase of around 19.93%[133]. - The company's current assets totaled RMB 9,388,417 thousand, up from RMB 7,855,283 thousand, indicating an increase of about 19.48%[132]. Production and Sales - In the first half of 2020, the company produced 2.86 million tons of pig iron, 3.28 million tons of steel (up 2.96% year-on-year), and 3.14 million tons of steel products (up 4.25% year-on-year) while maintaining a production-sales balance[29]. - The average selling price of steel products was RMB 3,348 per ton, a decrease of 4.62% year-on-year, leading to a revenue loss of RMB 485.48 million[32][35]. - The company has an annual production capacity of 8.4 million tons of steel, focusing on various steel products[23]. - The company's total steel sales volume was 3.137 million tons, a slight increase of 0.15% year-on-year[37]. Strategic Initiatives - The company aims to enhance scale, adjust structure, and reduce costs as part of its operational strategy[23]. - The company is positioned as a leading steel enterprise in the southwestern region of China, with a strong market presence[27]. - The company plans to produce 6.12 million tons of pig iron, 6.80 million tons of steel, and 6.38 million tons of steel products in 2020, aiming for a sales revenue of RMB 22 billion (excluding tax)[29]. - The company is actively involved in strategic investments, including establishing a special fund for the acquisition of Chongqing Steel Group[54]. Environmental Compliance - The company has implemented strict pollution control measures, ensuring that total pollutant emissions did not exceed permitted levels during the reporting period[82]. - The company has not incurred any environmental penalties during the reporting period, reflecting compliance with environmental regulations[82]. - The company reported a total emission of 48 tons of particulate matter from 10 discharge points, complying with the iron and steel industry air pollutant discharge standards[83]. - The company successfully completed the ultra-low emission transformation of its sintering flue gas desulfurization facilities, achieving stable compliance with emission requirements[86]. Corporate Governance - The company confirmed compliance with the Hong Kong Stock Exchange's corporate governance code during the reporting period[93]. - The company has ensured compliance with all legal regulations during its shareholder meetings and decision-making processes[53]. - The company appointed Ernst & Young Hua Ming as the financial and internal control audit firm for the 2020 fiscal year, with an audit fee of RMB 2.95 million, consistent with the previous year's fee[65]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 145,157[117]. - The largest shareholder, Chongqing Changshou Steel Co., Ltd., held 2,096,981,600 shares, accounting for 23.51% of the total shares[119]. - The company did not declare any interim dividend for the six months ending June 30, 2020, due to accumulated undistributed profits remaining negative[94]. Employee and Compensation - Employee compensation includes various forms of remuneration, such as short-term salaries, incentive funds, and post-employment benefits[197]. - The company operates a defined benefit pension plan, with costs determined based on employee service duration and related subsidy policies[199].

Financial Performance - The company's operating revenue for the first half of the year was RMB 11,483,560, an increase of 3.52% compared to RMB 11,092,899 in the same period last year[14]. - Net profit attributable to shareholders decreased by 19.19% to RMB 615,728 from RMB 761,960 year-on-year[14]. - Basic earnings per share decreased by 22.22% to RMB 0.07 from RMB 0.09 in the same period last year[16]. - The company reported a decrease of 19.97% in net profit after deducting non-recurring gains and losses, amounting to RMB 589,097 compared to RMB 736,096 last year[14]. - Total profit decreased by 19.09% to RMB 617 million, mainly due to a 1.76% decline in average steel sales price to RMB 3,510 per ton[32]. - The gross profit margin for steel products was 10.27%, which decreased by 1.86% compared to the previous year[42]. - Operating profit decreased to RMB 603,608 thousand, down 22.94% from RMB 783,125 thousand year-on-year[136]. - Net profit for the first half of 2019 was RMB 616,195 thousand, a decline of 19.22% compared to RMB 762,334 thousand in the first half of 2018[136]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 88,417, a significant recovery from a negative cash flow of RMB -1,301,188 in the previous year[14]. - The total cash and cash equivalents at the end of the first half of 2019 was CNY 2,213,944, compared to CNY 450,015 at the end of the first half of 2018[147]. - Cash inflow from investment activities in the first half of 2019 was CNY 409,751, down 38.6% from CNY 666,958 in the same period of 2018[143]. - Net cash flow from investment activities for the first half of 2019 was a negative CNY 214,233, compared to a positive CNY 664,294 in the first half of 2018[143]. - Cash inflow from financing activities in the first half of 2019 totaled CNY 900,088, a decrease of 23.8% from CNY 1,181,576 in the same period of 2018[144]. - Net cash flow from financing activities for the first half of 2019 was CNY 370,217, an increase from CNY 217,947 in the first half of 2018[146]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 26,486,557, a decrease of 1.66% from RMB 26,933,351 at the end of the previous year[15]. - The total liabilities decreased by 83.54% for accounts payable, amounting to RMB 197,409 thousand[46]. - The total liabilities as of June 30, 2019, were RMB 7,392,874,000, down from RMB 8,401,686,000, indicating a reduction of 12.00%[126]. - The company reported a significant increase in receivables financing, which rose to RMB 1,076,313,000 from RMB 575,652,000, a growth of 86.88%[123]. - Long-term borrowings decreased to RMB 150,000,000 from RMB 300,000,000, a reduction of 50.00%[124]. Production and Sales - The company achieved production of 2.98 million tons of iron, 3.25 million tons of steel, and 3.10 million tons of materials in the first half of the year, representing year-on-year increases of 199,700 tons, 150,500 tons, and 130,300 tons respectively[24]. - Steel sales reached 3.13 million tons, an increase of 188,700 tons year-on-year, marking the highest level in history[24]. - The company achieved a cost reduction of RMB 144 per ton, totaling RMB 449 million, completing 64.5% of the annual target[27]. - The total sales volume for the first half of 2019 was 313.22 million tons, an increase of 6.41% compared to 294.35 million tons in the same period of 2018[37]. Market Position and Strategy - The company is positioned as the only large steel enterprise in Chongqing that complies with national industrial policies, benefiting from advantageous logistics conditions[22]. - The company aims to become the most competitive steel enterprise in Southwest China, focusing on sustainable and high-quality development[22]. - The company is actively expanding its marketing channels and has increased the proportion of direct supply, direct sales, and direct delivery significantly year-on-year[25]. - The company has implemented a cost leadership and manufacturing technology leadership strategy to enhance competitiveness amid rising iron ore prices and declining steel prices[23]. Environmental and Compliance - The company is currently constructing upgrades for its pollution control facilities, specifically for the 2 and 3 sintering flue gas desulfurization projects, which are operating well alongside production facilities[85]. - The company has completed its emergency response plan for environmental incidents, which remains valid and was last updated in April 2019[85]. - The company has established a self-monitoring plan for environmental compliance, fulfilling its legal obligations and social responsibilities[86]. - The company reported that its main pollutants include sulfur dioxide, nitrogen oxides, and particulate matter, with regular updates provided on the ecological environment bureau's website[85]. Shareholder and Governance - The company appointed Ernst & Young Hua Ming as the financial and internal control audit firm for the 2019 fiscal year, with an audit service fee of RMB 2.95 million (approximately $0.45 million) excluding tax[71]. - The company’s audit committee consists of three independent non-executive directors and one non-executive director, ensuring oversight of the financial reporting process[102]. - The company did not declare any interim dividend for the six months ending June 30, 2019, due to accumulated undistributed profits remaining negative[100]. - The company has committed to ensuring that any business opportunities obtained by the investment fund will be offered to Chongqing Steel before proceeding with investments[69]. Related Party Transactions - The company approved a related party transaction for leasing production equipment from Chongqing Changshou Steel Co., with a transaction amount of RMB 93,684,000[78]. - The company has a related party loan from Chongqing Changshou Steel Co. with a remaining balance of RMB 2,690,500,000 and incurred interest of RMB 64,692,000 during the reporting period[80]. - The company has engaged in significant related party transactions, with a total transaction amount for related party services reaching RMB 11,536,000, accounting for 4.50% of similar transactions[78]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance of the People's Republic of China[155]. - The financial report reflects the company's commitment to continuous operation and adherence to historical cost principles for asset valuation[155]. - The company has classified financial assets into categories based on their measurement and recognition, including those measured at fair value with changes recognized in other comprehensive income[173]. - The company employs a perpetual inventory system for inventory management[186].