Chongqing Iron & Steel Company Limited announced that it has entered into the Service and Supply Agreement with China Baowu, whereby the Group agreed to sell products to China Baowu Group, and China Baowu Group agreed to sell or provide products, services and lease of factory premises to the Group. In view of the enlarged production capacity of the Company and the increase of China Baowu's demand, the Company and China Baowu entered into the Supplemental Agreement on 29 January 2021. It is agreed that the item "pig iron" shall be added to the products sold by the Group to China Baowu Group, and that the proposed cap of transaction amount in respect of the provision of products by the Group to China Baowu Group shall be raised from RMB 966,710,000 to RMB 2,537,100,000. Save as the changes aforesaid, all other terms under the Service and Supply Agreement remain unchanged. As at the date of this announcement, Changshou Iron & Steel is interested in approximately 23.51% of the issued share capital of the Company and is the substantial shareholder of the Company. China Baowu is the indirect controlling shareholder of Changshou Iron & Steel and is accordingly the indirect substantial shareholder of the Company, i.e., a connected person under Chapter 14A of the Listing Rules. Therefore, the transactions under the Supplemental Agreement constitute continuing connected transactions for the Company under the Listing Rules. As the applicable percentage ratios for the caps of the proposed amount of the transactions contemplated under the Supplemental Agreement is more than 5%, the transactions contemplated under the Supplemental Agreement constitute non- exempt continuing connected transactions under Chapter 14A of the Listing Rules and are subject to the requirements of reporting and announcement, Independent Shareholders' approval and annual review under Chapter 14A of the Listing Rules. A circular including, among other things, details of the Supplemental Agreement and the transactions contemplated thereunder, the recommendation letter from the Independent Board Committee, the letter of advice from the Independent Financial Adviser to the Independent Board Committee and the Independent Shareholders and, a notice convening the EGM to approve the Supplemental Agreement and the transactions contemplated thereunder, is expected to be dispatched to the Shareholders on or before 26 February 2021 pursuant to Chapter 14A of the Listing Rules after considering the time required for preparing the circular.