OVERSEAS REGULATORY ANNOUNCEMENT FIRST QUARTERLY REPORT FOR 2021

IMPORTANT NOTICE

The board of directors, supervisory committee, directors, supervisors and senior management of the Company warrant that the contents of this quarterly report are authentic, accurate and complete, and there are no misrepresentations or misleading statements contained in or material omissions from this quarterly report, and severally and jointly accept the related legal responsibility.

All directors of the Company attended the meeting of the board of directors to consider this quarterly report.

Mr. Wu Yong, Chairman of the Company, Mr. Hu Lingling, General Manager, Mr. Luo Xinpeng, Chief Accountant and Mr. Liu Qiyi, Chief of Finance Department hereby declare that the authenticity, accuracy and completeness of the financial statements contained in this quarterly report are warranted.

The financial statements contained in this quarterly report of the Company have not been audited.

THE OVERALL INFORMATION OF THE COMPANY

Principal financial data

At the end of this

reporting period

At the end of

last year

Increase/decrease

as compared with

the end of this

reporting period of

last year (%)

Net assets attributable to shareholders of listed company

From the

beginning of the

year to the end of
the reporting

period

Net cash flow from operating activities

From the

beginning of the

year to the end of

the reporting

period

From the

beginning of last

year to the end of

the reporting

period of last year

Increase/decrease

as compared with

the same period of

last year (%)

Revenues from operation

Net profit attributable to shareholders of listed company

Net profit attributable to shareholders of listed company after extraordinary gain or loss

Weighted average return on net assets (%)

Basic earnings per share (¥/share)

Diluted earnings per share (¥/share)

Extraordinary gain or loss items and amounts

Amount for the

period

Gain or loss on disposal of non-current assets

Other non-operating income and expenses other than aforesaid items

Effect of minority interest (net of tax)

Effect of income tax

Total

Total number of shareholders, shareholding of top ten shareholders and top ten holders of shares without selling restrictions at the
end of the reporting period

Total number of shareholders

(Number)

Shareholding of top ten shareholders

Number of
shares held at
the end of the

period

Percentage

(%)

Number of
shares
with

selling
restrictions

held

China Railway Guangzhou Group Co., Ltd.

HKSCC NOMINEES LIMITED

(Note)

Lin Naigang

Li Wei

Taiyuan Iron & Steel (Group) Company Limited

Li Haihong

Harvest Fund - Agricultural Bank of China - Harvest CSI Financial Asset Management Plan

Yinhua Fund - Agricultural Bank of China - Yinhua CSI Financial Asset Management Plan

Zhongou Fund - Agricultural Bank of China - Zhongou CSI Financial Assets Management Plan

Southern Fund - Agricultural Bank of China - Southern CSI Financial Asset Management Plan

China Railway Guangzhou Group Co., Ltd.

2,629,451,300

ordinary shares

HKSCC NOMINEES LIMITED (Note)

ordinary shares

1,538,497,803

Lin Naigang

124,000,000

ordinary shares

Li Wei

32,000,001

ordinary shares

Taiyuan Iron & Steel (Group) Company Limited

29,338,189

ordinary shares

Li Haihong

28,541,961

ordinary shares

Harvest Fund - Agricultural Bank of China - Harvest
CSI Financial Asset Management Plan

28,101,600

ordinary shares

Yinhua Fund - Agricultural Bank of China - Yinhua
CSI Financial Asset Management Plan

26,814,300

ordinary shares

Zhongou Fund - Agricultural Bank of China - Zhongo
u CSI Financial Assets Management Plan

26,436,800

ordinary shares

Southern Fund - Agricultural Bank of China - Southern
CSI Financial Asset Management Plan

24,907,300

ordinary shares

Statement regarding connected relationship or concerted
action of the above shareholders

121,383,504 A shares and 1,417,114,299 H shares of the Company were held by HKSCC NOMINEES LIMITED in the capacity of various clients.

Total number of preference shareholders, shareholding of top ten preference shareholders and top ten preference shareholders holding shares without selling restrictions at the end of the reporting period

SIGNIFICANT EVENTS

Significant changes of key accounting items and financial indicators and reasons for changes

Statement

of Profit

(%)

(1)

(2)

Cash Flow

Statement

2021

2020

(%)

(1)

(2)

Progress and impact of significant events and analysis and explanations for solutions

Commitments which have not been fulfilled during the reporting period

Caution and explanation as to the anticipated loss of accumulated net profit from the beginning of the year to the end of the next reporting period or significant changes over the same period of last year

APPENDIX

FINANCIAL STATEMENTS

Current assets:

Bank balances and cash

Trade receivables

Prepayments

Other receivables

Inventories

Other current assets

Total current assets

Non-current assets:

Debt investments

Long-term receivables

Long-term equity investments

Investments in other equity instruments

Fixed assets

Constructions-in-progress

Right-of-use assets

Intangible assets

Goodwill

Long-term prepaid expenses

Deferred income tax assets

Other non-current assets

Total non-current assets

Total assets

Current liabilities:

Trade payables

Contract liabilities

Staff remuneration payable

Tax payable

Other payables

Other current liabilities

Non-current liabilities due within one year

Total current liabilities

Non-current liabilities:

Lease liabilities

Deferred income

Deferred income tax liabilities

Total non-current liabilities

Total liabilities

Owners' equity (or shareholders' equity):

Paid-in capital (or share capital)

Capital reserves

Other comprehensive income

Appropriative reserves

Surplus reserves

Retained earnings

Total equity attributable to owners (or shareholders' equity) of the parent

Minority interests

Total owners' equity (or shareholders' equity)

Total liabilities and owners' equity (or shareholders' equity)

Current assets:

Bank balances and cash

Trade receivables

Prepayments

Other receivables

Inventories

Other current assets

Total current assets

Non-current assets:

Debt investments

Long-term receivables

Long-term equity investments

Investments in other equity instruments

Fixed assets

Constructions-in-progress

Right-of-use assets

Intangible assets

Goodwill

Long-term prepaid expenses

Deferred income tax assets

Other non-current assets

Total non-current assets

Total assets

Current liabilities:

Trade payables

Contract liabilities

Staff remuneration payable

Tax payable

Other payables

Other current liabilities

Non-current liabilities due within one year

Total current liabilities

Non-current liabilities:

Lease liabilities

Deferred income

Total non-current liabilities

Total liabilities

Owners' equity (or shareholders' equity):

Paid-in capital (or share capital)

Capital reserves

Other comprehensive income

Appropriative reserves

Surplus reserves

Retained earnings

Total owners' equity (or shareholders' equity)

Total liabilities and owners' equity (or shareholders' equity)

I.   Total revenues from operation

Include: Revenues from operation

II. Total operating costs

Include: Operating costs

Business tax and surcharges

Management expenses

Finance costs

Include: Interest expense

Interest income

Add: Other gains

Gains from investments (loss denoted by '-')

Include: Gains from investments in associates and joint ventures

Credit impairment losses (loss denoted by '-')

III.  Profit from operation (loss denoted by '-')

Add: Non-operating income

Less: Non-operating expenses

IV.  Gross profit (gross loss denoted by '-')

Less: Income tax expenses

V. Net profit (net loss denoted by '-')

(1)   By continuous operation

1.  Net profit from continuous operation (net loss denoted by '-')

2.  Net profit from discontinuous operation (net loss denoted by '-')

(2)   By ownership of the equity

1.  Net profit attributable to owners of the parent (net loss denoted by '-')

2.  Profit or loss of minority shareholders (net loss denoted by '-')

VI.  Net other comprehensive income after tax

VII.  Total comprehensive income

(1)   Total comprehensive income attributable to owners of the parent

(2)   Total comprehensive income attributable to minority shareholders

VIII.Earnings per share:

(1)   Basic earnings per share (¥/share)

(2)   Diluted earnings per share (¥/share)

I.   Revenues from operation

Less: Operating costs

Business tax and surcharges

Management expenses

Finance costs

Include: Interest expense

Interest income

Add:Other gains

Gains from investments (loss denoted by '-')

Include: Gains from investments in associates and joint ventures

Credit impairment losses (loss denoted by '-')

II. Profit from operation (loss denoted by '-')

Add: Non-operating income

Less: Non-operating expenses

III.  Gross profit (gross loss denoted by '-')

Less: Income tax expenses

The first

quarter of 2021

The first

quarter of 2020

IV.  Net profit (net loss denoted by '-')

(1)   Net profit from continuous operation (net loss denoted by '-')

(2)   Net profit from discontinuous operation (net loss denoted by '-')

V. Net other comprehensive income after tax

VI.  Total comprehensive income

VII.  Earnings per share:

(1)   Basic earnings per share (¥/share)

(2)   Diluted earnings per share (¥/share)

I.   Cash flows from operating activities:

Cash received from sales of goods or rendering of services

Cash received relating to other operating activities

Sub-total of cash inflows from operating activities

Cash paid for goods purchased and services accepted

Cash paid to and on behalf of employees

Tax paid

Cash paid relating to other operating activities

Sub-total of cash outflows from operating activities

Net cash flows from operating activities

II.   Cash flows from investing activities:

Net cash received from disposal of fixed assets, intangible assets and other long-term assets activities

Sub-total of cash inflows from investing activities

Cash paid to construct fixed assets, intangible assets and other long-term assets

Sub-total of cash outflows from investing activities

Net cash flows from investing activities

III. Cash flows from financing activities:

Cash received relating to other financing activities

Sub-total of cash inflows from financing activities

Net cash flows from financing activities

IV.  Effect of foreign exchange rate changes on cash and cash equivalents

V. Net increase in cash and cash equivalents

Add:Balance of cash and cash equivalents at the beginning of the period

VI.  Balance of cash and cash equivalents at the end of the period

I.   Cash flows from operating activities:

Cash received from sales of goods or rendering of services

Cash received relating to other operating activities

Sub-total of cash inflows from operating activities

Cash paid for goods purchased and services accepted

Cash paid to and on behalf of employees

Tax paid

Cash paid relating to other operating activities

Sub-total of cash outflows from operating activities

Net cash flows from operating activities

II.   Cash flows from investing activities:

Net cash received from disposal of fixed assets, intangible assets and other long-term assets activities

Sub-total of cash inflows from investing activities

Cash paid to construct fixed assets, intangible assets and other long-term assets

Sub-total of cash outflows from investing activities

Net cash flows from investing activities

III. Cash flows from financing activities:

Cash received relating to other financing activities

Sub-total of cash inflows from financing activities

Net cash flows from financing activities

IV.  Effect of foreign exchange rate changes on cash and cash equivalents

V. Net increase in cash and cash equivalents

Add: Balance of cash and cash equivalents at the beginning of the period

VI.  Balance of cash and cash equivalents at the end of the period

Information of adjustments made to the opening financial statements for the year of first adoption of new revenue accounting standards and new lease accounting standards since 2020

Explanation of the retrospective adjustments made to the comparative figures of prior periods due to the first adoption of new revenue accounting standards and new lease accounting standards since 2020

Audit Report