Chongqing Iron & Steel : OVERSEAS REGULATORY ANNOUNCEMENT ANNOUNCEMENT ON THE RISK OF A SHARES TRADING

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.

OVERSEAS REGULATORY ANNOUNCEMENT

ANNOUNCEMENT ON THE RISK OF A SHARES TRADING

This announcement is made by Chongqing Iron & Steel Company Limited (the "Company") pursuant to the Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

IMPORTANT NOTICE:

• The increase in the closing prices of the A shares of the Company deviated by more than 20% for two consecutive trading days on 6 May and 7 May 2021 on a cumulative basis, which falls within the circumstances of unusual movements in shares trading according to the relevant requirements of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. The Overseas Regulatory Announcement - Announcement On Unusual Movements In A Shares Trading was disclosed by the Company on 8 May 2021.
• On 10 May 2021, the closing price of the A shares of the Company reached a specific high-level leading to a trading halt once again. The prices of A shares of the Company recorded an accumulated increase of 33.48% for three consecutive trading days from 6 May to 10 May 2021, which was a significant increase in the prices of A shares of the Company in a short term. As at the close of trading on 10 May 2021, the forward price-to-earning ratio of A shares of the Company was 6.18 times and the price-to-book ratio was 1.28 times. Investors are advised to pay attention to the secondary market trading risks, and make rational investments based on prudent decision-making.

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1. SECONDARY STOCK MARKET RISKS
   The increase in the closing prices of the A shares of the Company deviated by more than 20% for two consecutive trading days on 6 May and 7 May 2021 on a cumulative basis. On 10 May 2021, the closing price of the A shares of the Company reached a specific high-level leading to a trading halt once again. The prices of A shares of the Company recorded an accumulated increase of 33.48% for three consecutive trading days from 6 May to 10 May 2021, which was a significant increase in the prices of A shares of the Company in a short term. As at the close of trading on 10 May 2021, the forward price-to-earning ratio of A shares of the Company was 6.18 times and the price-to-book ratio was 1.28 times. Investors are advised to pay attention to the secondary market trading risks, and make rational investments based on prudent decision-making.

1. PRODUCTION AND OPERATION
   The current production and operation of the Company are normal. There are no major changes in the internal and external business environment. The Company does not have any undisclosed matters which should be disclosed pursuant to the relevant rules including the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange or any planning, negotiation, intention and agreement relating to such matters, nor is the board of directors aware of any information which has not been disclosed but should be disclosed pursuant to the relevant rules including the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and may have a material impact on the trading prices of the shares of the Company and their derivatives. There is no need to correct or supplement the information disclosed previously by the Company.

III. MEDIA COVERAGE, MARKET RUMOURS AND HOT TOPICS

The Company is not aware of any media coverage or market rumours which should be clarified or other significant events that may have a material impact on the share prices of the Company's shares.

IV. OTHER PRICE-SENSITIVE INFORMATION

As verified by the Company, the directors, supervisors, senior management, controlling shareholder, de facto controller of the Company and its parties acting in concert did not sell or purchase the shares of the Company during the unusual movements in the shares trading of the Company.

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1. STATEMENT OF THE BOARD OF DIRECTORS
   The board of directors of the Company confirms that the Company does not have any undisclosed matters which should be disclosed pursuant to the relevant rules including the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange or any planning, negotiation, intention and agreement relating to such matters, nor is the board of directors aware of any information which has not been disclosed but should be disclosed pursuant to the relevant rules including the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and may have a material impact on the trading prices of the shares of the Company and their derivatives. There is no need to correct or supplement the information disclosed previously by the Company.

VI. RELEVANT RISK WARNING

The designated media for information disclosure of the Company include the website of the Shanghai Stock Exchange, and China Securities Journal, Shanghai Securities News, Securities Times and Securities Daily. The information of the Company published on the above designated media shall prevail. Investors are advised to exercise caution and beware of investment risks.

By order of the Board

Chongqing Iron & Steel Company Limited

Liu Jianrong

Chairman

Chongqing, the PRC, 11 May 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 (Non- executive 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).

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