Chongqing Iron & Steel : UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 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.

UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE

SIX MONTHS ENDED 30 JUNE 2020

1. IMPORTANT
2. 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.
   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.
   3. All directors of the Company attended the Board meeting.
   4. The Interim Report is unaudited.
   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 -

1. 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	[e-mail]	[e-mail]

- 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 relationship or acts in concert among the above shareholders

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

Chongqing Changshou Iron & Steel Company Limited is the controlling shareholder of the Company and has no associated relationship with the other 9 shareholders and they are not parties acting in concert as stipulated in 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 associated relationship among the other 9 shareholders or whether they are parties acting in concert.

N/A

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

1. 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

1. year-on-yeardecrease 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 million- tonne-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 -

1. Others
2. • 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

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

- 8 -

Sales prices of steel products:

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

- 9 -

② Others
		Applicable						Not Applicable
	✓
	Principal operations by sectors, products and regions
																Unit: RMB'000
						Main operations by sectors
													Year-on-		Year-on-		Year-on-
												year increase/	year increase/	year increase/
					Cost of		Gross		decrease in		decrease in		decrease in
	By sectors	Revenue			sales		Margin		revenue		cost of sales	gross margin
									(%)	(%)	(%)	(%)
	Iron and steel	10,875,755	10,316,945		5.14	-4.94	0.09	-4.77
						Main operations by products
													Year-on-		Year-on-		Year-on-
												year increase/	year increase/	year increase/
					Cost of		Gross		decrease in		decrease in		decrease in
	By products	Revenue			sales		Margin		revenue		cost of sales	gross margin
									(%)	(%)	(%)	(%)
	Steel products	10,501,555	9,934,475		5.40	-4.48	0.70	-4.87
	Others	374,200	382,470	-2.21	-16.24	-13.47	-3.27
						Main operations by regions
													Year-on-		Year-on-		Year-on-
												year increase/	year increase/	year increase/
					Cost of		Gross		decrease in		decrease in		decrease in
	By regions	Revenue			sales		Margin		revenue		cost of sales	gross margin
									(%)	(%)	(%)	(%)
	Southwest
	region	10,281,370	9,767,107		5.00	-5.44	-0.39	-4.82
	Other regions	594,385	549,838	7.49	4.60	9.63	-4.25
	Total	10,875,755	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.

1. 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.
2. 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 -

1. Major acquisition and disposal of subsidiaries and affiliates
   No major acquisition and disposal of subsidiaries and affiliates occurred during the reporting period.
2. 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.
3. 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 -

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

- 13 -

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

- 14 -

Statement of Financial Position of the Parent Company

As at 30 June 2020

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

- 15 -

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

- 16 -

Consolidated Income Statement

For the six months ended 30 June 2020

			Unit: RMB'000
			Six months		Six months
			ended 30		ended 30
Items			June 2020		June 2019
I.	Revenue	10,927,367	11,483,560
	Less:	Cost of sales	10,342,993	10,342,032
		Taxes and surcharges	88,595	92,194
		Distribution and selling expenses	53,355	45,161
		General and administrative expenses	244,093	330,030
		Finance expenses	90,148	75,985
		Including:Interest expenses	110,693	106,499
		Interest income	23,202	33,469
	Add:	Other income	6,515	1,227
		Investment income	6,791	5,351
II.	Operating profit	121,489	604,736
	Add:	Non-operating income	684	13,252
	Less:	Non-operating expenses	747	665
III.	Total profit	121,426	617,323
	Less:	Income tax expenses	71	1,595

- 17 -

	Six months	Six months
	ended 30	ended 30
Items	June 2020	June 2019
IV. Net Profit	121,355	615,728
(I) Breakdown by continuity of operations
1. Net profit from continuing operations	121,355	615,728

1. Breakdown by attributable interests
   1. Net profit attributable to owners of

		the parent company	121,355	615,728
		2. Non-controlling interests	-		-
V.	Other comprehensive income after tax	121,355	615,728
VI.	Total comprehensive income	121,355	615,728
	Total comprehensive income attributable to
	owners of the parent company	121,355	615,728
	Total comprehensive income attributable to
	non-controlling interests	-		-
VII.	Earnings per share:
	(I)	Basic earnings per share (RMB/share)	0.01	0.07
	(II)	Diluted earnings per share (RMB/share)	0.01	0.07

- 18 -

Income Statement of the Parent Company

For the six months ended 30 June 2020

			Unit: RMB'000
Items			Six months		Six months
			ended 30		ended 30
			June 2020		June 2019
I.	Revenue	10,933,097	11,486,217
	Less:	Cost of sales	10,350,437	10,350,441
		Taxes and surcharges	88,528	91,997
		Distribution and selling expenses	53,116	44,950
		General and administrative expenses	244,093	330,030
		Finance expenses	90,157	75,989
		Including:Interest expenses	110,693	106,499
		Interest income	23,193	33,463
	Add:	Other income	6,515	1,227
		Investment income	6,791		9,571
II.	Operating profit	120,072	603,608
	Add:	Non-operating income	684	13,252
	Less:	Non-operating expenses	747	665
III.	Total profit	120,009	616,195
	Less:	Income tax expenses	-		-
IV.	Net Profit	120,009	616,195
	Breakdown by continuity of operations
	1. Net profit from continuing operations	120,009	616,195
V.	Other comprehensive income after tax	120,009	616,195
VI.	Total comprehensive income	120,009	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 of the parent company
								Non-	Total
			Less:	Other
	Share	Capital	Treasury	comprehensive	Special	Surplus	Accumulated	controlling	shareholders'
Items	capital	reserves	shares	income	reserves	reserves	losses	interests	equity

1. Closing balances of the preceding year and opening balances of

	the current period	8,918,602		19,282,147		62,314		-	14,573				606,991	(9,363,996)	-	19,396,003
II.	Changes in the current
	period(decrease is represented
	by "-")	-	-	3,626		-	6,452				-	121,355		-	124,181
	(I)	Total comprehensive income	-	-	-		-		-	-	121,355		-	121,355
	(II)	Shareholders' contribution and	-	-	3,626		-		-	-		-	-	(3,626)
			decrease in share capital
		1.	Others	-	-	3,626		-		-	-		-	-	(3,626)
	(III)	Special reserves	-	-	-		-	6,452				-		-	-	6,452
		1.	Amount established	-	-	-		-	12,954				-		-	-	12,954
			during the period
		2.	Amount utilized during	-	-	-		-	6,502				-		-	-	6,502
			the period
III.	Closing balance for the period	8,918,602	19,282,147	65,940		-	21,025				606,991	(9,242,641)	-	19,520,184
										Six months ended 30 June 2019
						Total equity attributable to shareholders of the parent company
																				Non-		Total
								Less:		Other
				Share	Capital	Treasury	comprehensive		Special	Surplus	Accumulated	controlling	shareholders'
Items				capital	reserves	shares		income		reserves	reserves		losses	interests		equity
I.	Closing balances of the preceding
	year and opening balances of
	the current period	8,918,602		19,282,147		-		-	13,644				606,991	(10,289,719)	-	18,531,665

1. Changes in the current period(decrease is represented

by "-")	-	-	62,314		-	8,604		-	615,728		-	562,018
(I)	Total comprehensive income	-	-		-		-		-		-	615,728		-	615,728
(II)	Shareholders' contribution and
		decrease in share capital	-	-	62,314		-		-		-		-	-	(62,314)
	1.	Others	-	-	62,314		-		-		-		-	-	(62,314)
(III)	Special reserves	-	-		-		-	8,604		-		-	-	8,604
	1.	Amount established
		during the period	-	-		-		-	12,840		-		-	-	12,840
	2.	Amount utilized during
		the period	-	-		-		-	4,236		-		-	-	4,236
III. Closing balance for the period
8,918,602		19,282,147	62,314		-	22,248	606,991	(9,673,991)	-	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
			Less:	Other				Total
	Share	Capital	Treasury	comprehensive	Special	Surplus	Accumulated	shareholders'
Items	capital	reserves	shares	income	reserves	reserves	losses	equity

1. Closing balances of the preceding year and opening balances of

the current period

8,918,602

19,313,090

62,314

-

14,573

577,012

(9,368,166)

19,392,797

1. Changes in the current period(decrease is

represented by "-")	-		-	3,626		-	6,452		-	120,009		122,835
(I)	Total comprehensive income	-		-	-		-		-		-	120,009		120,009
(II)	Shareholders' contribution
		and decrease in share
		capital	-		-	3,626		-		-		-		-	(3,626)
	1.	Others	-		-	3,626		-		-		-		-	(3,626)
(III)	Special reserves	-		-	-		-	6,452		-		-	6,452
	1.	Amount established
		during the period	-		-	-		-	12,954		-		-	12,954
	2.	Amount utilized during
		the period	-		-	-		-	6,502		-		-	6,502
III. Closing balance for the period	8,918,602	19,313,090	65,940		-	21,025	577,012	(9,248,157)	19,515,632
									Six months ended 30 June 2019
							Less:		Other								Total
			Share		Capital	Treasury	comprehensive		Special		Surplus		Accumulated	shareholders
Items			capital		reserves	shares		income		reserves		reserves		losses	' equity

1. Closing balances of the preceding year and opening balances of

the current period

8,918,602

19,313,090

-

-

13,644

577,012

(10,292,036)

18,530,312

1. Changes in the current period(decrease is

represented by "-")	-		-	62,314		-	8,604		-	616,195		562,485
(I)	Total comprehensive income	-		-	-		-		-		-	616,195		616,195
(II)	Shareholders' contribution
		and decrease in share
		capital	-		-	62,314		-		-		-		-	(62,314)
	1.	Others	-		-	62,314		-		-		-		-	(62,314)
(III)	Special reserves	-		-	-		-	8,604		-		-	8,604
	1.	Amount established
		during the period	-		-	-		-	12,840		-		-	12,840
	2.	Amount utilized during
		the period	-		-	-		-	4,236		-		-	4,236
III. Closing balance for the period
8,918,602	19,313,090	62,314		-	22,248	577,012	(9,675,841)	19,092,797

- 21 -

Consolidated Statement of Cash Flows

For the six months ended 30 June 2020

		Unit: RMB'000
		Six months		Six months
		ended 30		ended 30
Items	June 2020		June 2019
I.	Cash flows from operating activities:
	Cash received from sale of goods and
	rendering of services	9,248,203	10,334,249
	Other cash received relating to operating
	activities	188,980	61,079
	Sub-total of cash inflows from operating
	activities	9,437,183	10,395,328
	Cash paid for purchase of goods and
	services	8,155,684	9,030,724
	Cash paid to and on behalf of employees	650,980	743,222
	Cash paid for all types of taxes	279,479	365,205
	Other cash paid relating to operating
	activities	268,454	167,760
	Sub-total of cash outflows from operating
	activities	9,354,597	10,306,911
	Net cash flows from operating activities	82,586	88,417
II. Cash flows from investing activities:
	Cash received from disposal of
	investments	433,000	404,400
	Cash received from return on investments	6,791	5,351
	Sub-total of cash inflows from investing
	activities	439,791	409,751
	Cash paid for acquisition of property,
	plant and equipment, intangible assets
	and other long-term assets	145,638	36,926
	Cash paid for acquisition of investments	43,000	587,058
	Sub-total of cash outflows from investing
	activities	188,638	623,984
	Net cash flows from investing activities	251,153	(214,233)

- 22 -

	Six months		Six months
	ended 30		ended 30
Items	June 2020		June 2019
III. Cash flows from financing activities:
Cash received from borrowings	2,004,500	105,000
Other cash received relating to financing
activities	-	795,088
Sub-total of cash inflows from financing
activities	2,004,500	900,088
Cash repayments of borrowings	870,000	200,000
Cash paid for distribution of dividends or
profits, and for interest expenses	85,445	79,446
Other cash paid relating to financing
activities	9,545	250,425
Sub-total of cash outflows from financing
activities	964,990	529,871
Net cash flows from financing activities	1,039,510	370,217
IV. Effect of changes in exchange rate on
cash and cash equivalents	-		-
V. Net increase in cash and cash
equivalents	1,373,249	244,401
Add: Cash and cash equivalents at the
beginning of the period	1,595,323	1,969,543
VI. Cash and cash equivalents at the end of
the period	2,968,572	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		Six months
	ended 30		ended 30
Items	June 2020		June 2019
I. Cash flows from operating activities:
Cash received from sale of goods and rendering
of services	8,975,505	10,328,057
Other cash received relating to operating
activities	187,118	61,079
Sub-total of cash inflows from operating
activities	9,162,623	10,389,136
Cash paid for purchase of goods and services	7,885,766	9,030,724
Cash paid to and on behalf of employees	650,980	743,222
Cash paid for all types of taxes	278,758	363,825
Other cash paid relating to operating activities	266,302	167,564
Sub-total of cash outflows from operating
activities	9,081,806	10,305,335
Net cash flows from operating activities	80,817	83,801

- 24 -

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

- 25 -

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