Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 October 2019 1 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 I. Important Notice The Board of Directors, the Supervisory Committee and the Directors, members of the Supervisory Committee and senior management of the Company guarantee that there are no misrepresentations or misleading statements, or material omission in this report, and individually and collectively accept full responsibility for the authenticity, accuracy and integrity of the information contained in this report. All the members of the Board of Directors attended the board meeting on which this report was examined. Gao Lie, Chairman of the Company, Shen Qiang, the principal in charge of the accounting, and Zhao Zhonghua, Chief of Accounting Affairs, make the pledge for the authenticity, accuracy and integrity of the attached financial statements. 2 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 II. Company Profile I. Summary of Accounting data and Financial index Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year □ Yes √ No Increase or decrease at the end of At the end of the current At the end of previous year this reporting period over the period previous year Total assets(RMB) 63,759,364,131.78 59,632,504,915.83 6.92% Net assets attributable to shareholders of the listed company 19,439,854,342.60 19,126,258,116.67 1.64% (RMB) Increase or decrease From the beginning of Increase or decrease over This reporting period over the same period this year to the end of the same period of the of the previous year this reporting period previous year Operating income(RMB) 14,441,830,940.38 8.48% 38,544,426,107.52 4.87% Net profit attributable to the shareholders of the listed company 34,229,631.12 -49.83% 487,439,246.88 -40.93% (RMB) Net profit after deducting of non- recurring gain/loss attributable to 26,305,669.24 -49.16% 479,515,285.00 -38.26% the shareholders of listed company (RMB) Net Cash flow generated by -- -- 4,055,738,221.28 -41.50% business operation(RMB) Basic earnings per 0.01 -50.00% 0.13 -38.10% share(RMB/Share) Diluted earnings per 0.01 -50.00% 0.13 -38.10% share(RMB/Share) Weighted average net assets yield 0.18% -0.18% 2.53% -2.44% Items and amount of non-recurring profit and loss √ Applicable □ Not applicable 3 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Unit: Yuan From the beginning of the year to Items Notes the end of the current period Profit or loss from disposal of non-current assets (including the write-off part for which assets -55,191,533.14 impairment provision is made) Details of government subsidies recorded into current profits and loss(except such government subsidy closely related to the company’s normal business 62,516,500.00 operation, meeting the regulation of national policy and enjoyed constantly in certain quota or quantity according to a certain standard) Profit or loss from debt restructuring 50,640.00 Other non-operating revenue and expenditure other than 762,123.88 above items Less: Impact of income tax 203,190.97 Impact of minority interests (after tax) 10,577.89 Total 7,923,961.88 -- For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profit and loss items as illustrated in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” which have been defined as recurring profits and losses, it is necessary to explain the reason. □ Applicable √ Not applicable None of Non-recurring profit and loss items recognized as recurring profit and loss items as defined by “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” in the report period. II. Total Number of Shareholders and Shareholding of top 10 shareholders 1. Total number of common shareholders, preferred shareholders whose voting rights restored, and shareholding of top 10 shareholders Unit: Share The total number of preferred Total number of common shareholders whose voting rights has shareholders at the end of the 53,728 0 been restored at end of the reporting reporting period period(if any) Shareholding by Top 10 shareholders Name of the Nature of Proportion of Quantity of Amount of Number of share pledged/frozen 4 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 shareholder shareholder shares held shares restricted shares State of share Quantity held State- Pledged 732,115,333 Benxi Steel & Iron 61.44% 2,381,105,094 owned legal (Group) Co., Ltd. Frozen 45,000,000 person Liaoning Provincial State- Transportation owned legal 4.77% 184,842,883 Investment Group person Co., Ltd. CCB Principal Asset Management – ICBC – CR Trust Others 4.77% 184,842,883 – CR Trust Xing Sheng No. 5 Collective Fund Trust Plan Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Feng Others 4.77% 184,842,883 Fund Feng Qing No. 229 Asset Management Plan China Life AMP Fund– ICBC – China Life AMP – Hua Xin Trust Targeted Others 4.77% 184,842,883 Additional Shares Issuance No. 10 Asset Management Plan Domestic Liang Zhongqing natural 0.71% 27,623,365 person Domestic Liu Qiuying natural 0.34% 13,274,400 person VANGUARD Overseas 0.21% 8,157,311 EMERGING legal person 5 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 MARKETS STOCK INDEX FUND Domestic Chen Jinhong natural 0.18% 6,876,375 person Domestic Yi Honglu natural 0.17% 6,426,080 person Shareholding of top 10 shareholders of unrestricted shares Number of non-restricted common shares held at the Category of shares Name of the shareholder period-end Category of shares Quantity Benxi Steel & Iron (Group) Co., Common shares in 2,381,105,094 2,381,105,094 Ltd. RMB Liaoning Provincial Common shares in Transportation Investment 184,842,883 184,842,883 RMB Group Co., Ltd. CCB Principal Asset Management – ICBC – CR Trust Common shares in 184,842,883 184,842,883 – CR Trust Xing Sheng No. 5 RMB Collective Fund Trust Plan Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Common shares in 184,842,883 184,842,883 Feng Fund Feng Qing No. 229 RMB Asset Management Plan China Life AMP Fund– ICBC – China Life AMP – Hua Xin Common shares in Trust Targeted Additional 184,842,883 184,842,883 RMB Shares Issuance No. 10 Asset Management Plan Common shares in Liang Zhongqing 27,623,365 27,623,365 RMB Common shares in Liu Qiuying 13,274,400 13,274,400 RMB VANGUARD EMERGING Foreign shares MARKETS STOCK INDEX 8,157,311 placed in domestic 8,157,311 FUND exchange Common shares in Chen Jinhong 6,876,375 6,876,375 RMB Yi Honglu 6,426,080 Common shares in 6,426,080 6 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 RMB Related-parties or acting-in- It is unknown to the Company whether there is any related parties or action-in-concert parties as concert parties among the defined in “Measures for the Administration of the Takeover of Listed Companies”among the above-mentioned shareholders above-mentioned shareholders. Benxi Steel & Iron (Group) Co., Ltd. holds 2,142,105,094 shares of the company through an ordinary securities account, and holds 239,000,000 shares through the investor's credit securities Shareholders among the top 10 account, therefore, it holds a total of 2,381,105,094 shares. Liang Zhongqing holds 500 shares of participating in securities the company through general securities account and 27,622,865 shares of the company through margin trading (if any) an investor's credit securities account. Yi Honglu holds 6,426,080 shares of the company through an investor's credit securities account. Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreement dealing in reporting period □ Yes √ No Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back agreement dealing in reporting period. 2. Total Number of Preferred Shareholders and Shareholding of Top 10 Preferred Shareholders □ Applicable √ Not applicable 7 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 III. Important Events I. Major Changes in Financial Data and Financial Index and Reasons √ Applicable □ Not applicable Items and reasons for the changes of more than 30% compared with the beginning of the year in the consolidated statement Increase / 1. Statement of Financial Position Reasons Decrease Due to the increase of construction in progress that did not meet the conditions of Construction in progress 113% transferring to fixed assets at the end of the period Due to the increase of accounts payables in Accounts payables 50% the current period Due to the decrease of VAT payable at the Tax payable -89% end of this period Due to the conversion of long-term Non-current liabilities due within 552% borrowings into non-current liabilities due one year within one year Due to the increase in equipment leased at Long-term payables 446% the end of the period. Due to the decrease of payment of safety Special reserves 2913% production fee Items and reasons for the changes of more than 30% compared to January to September 2018 in the consolidated financial statements Increase / 2. Statement of comprehensive income Reasons Decrease Research and development Due to the increase of research and 606% expenses development expenses in current period Financial expenses -69% Due to the decrease of exchange loss Due to the decrease in financial products Investment income -99% purchased during the period. Due to the increase of disposal income on Asset disposal gains 170% fixed assets Due to the increase of gains arose from Non-operating income 323% fixed assets scrapping Due to the increase of losses arose from Non-operating expenses 3164% fixed assets scrapping 8 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Income tax expenses 84% Due to the increase of deferred income tax Profit or loss of non-controlling Due to the decrease of profit of holding -114% shareholders subsidiaries Increase / 3. Statement of cash flows Reasons Decrease Other cash received relating to Due to the increase of other cash received 115% operating activities relating to operating activities Due to the increase of taxes paid during the Cash paid for all types of taxes 47% current period Cash paid for acquisition of fixed Due to the decrease of payment of acquisition assets, intangible assets and other -33% of fixed assets, intangible assets during the long-term assets current period Due to the decrease of reception of Cash received from borrowings -65% borrowings Due to the decrease of cash on repayment of Cash repayments of borrowings -77% borrowings II. Progress and influence of significant events, as well as the analysis and explanation on solutions √ Applicable □ Not applicable On May 22, 2019, the second meeting of the eighth board of directors of the company and the second extraordinary shareholders meeting of the company in 2019 on June 10, 2019 reviewed and approved the relevant proposals on the company's public offering of A-share convertible corporate bonds. The China Securities Regulatory Commission (hereinafter referred to as the “China Securities Regulatory Commission”) accepted the application materials for the public offering of A-share convertible corporate bonds on August 7, 2019, and received the Notice issued by the China Securities Regulatory Commission on September 18, 2019. The “Notice of Feedback of the China Securities Regulatory Commission's Administrative Licensing Project Review” (No. 192096), the company and relevant intermediaries carried out serious verification and implementation work for the feedback, and in accordance with the requirements of the feedback, the information was supplemented and The question was answered and the relevant reply was disclosed on October 15, 2019. The company's issue of convertible corporate bonds is still subject to the approval of the China Securities Regulatory Commission. There is uncertainty as to whether it can be approved. Investors are advised to pay attention to investment risks. Interim report disclosure Overview of important matters Date of disclosure website query index 9 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 The company signed the "Asset Transfer Agreement" with Benxi Steel (Group) Co., Ltd. and Benxi Beiying www.cninfo.com.cn August 15, 2019 Iron and Steel (Group) Co., Ltd., and Announcement No.: 2019-051 acquired the equipment and equipment assets related to 2300mm hot rolling mill production line held by Benxi Iron and Steel Co., Ltd. and the equipment and equipment assets related to the 1780mm hot rolling mill www.cninfo.com.cn September 03, 2019 production line held by Benxi Beiying Announcement No.: 2019-058 Company. The company completed the purchase of the target assets on September 3, 2019. Progress in the implementation of share repurchase □ Applicable √ Not Applicable Progress in the implementation of the reduction of shareholding shares by centralized competitive bidding □ Applicable √ Not Applicable III. The Under-Fulfillment Commitments by the End of the Period Made by Actual Controller, Acquirer, Director, Supervisor, Senior Management Personnel and other Related Parties. √ Applicable □ Not applicable Commitment Type of Commitment Commitment Commitment reasons Contents Performance party commitment time period Commitment to share reform Commitment made in the acquisition report or the equity change report Commitment made during asset restructuring According to the relevant Company provisions of Commitment made directors, Other the China January 26, December 9, Under normal during initial public senior commitments Securities 2016 2019 fulfillment offering or refinancing management Regulatory Commission, the following 10 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 commitments can be made to the company’s efforts to fill the rewards: During the tenure, faithfully and diligently perform duties and safeguards the legitimate rights and interests of the company and all shareholders, including but not limited to: 1. Commitment not to transfer benefits to other units or individuals without compensation or unfair conditions, and not to damage the company’s interests in other ways; 2. Commitment to constrain the behavior of job consumption; 3. Commitment to not use company 11 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 assets to engage in investment and consumption activities unrelated to the performance of their duties; 4. Commitment to the compensation system established by the board of directors or the Remuneration and Appraisal Committee is linked to the implementatio n of the company's measures to cover the return; 5. If the company launches an equity incentive plan in the future, the terms of the exercise of the equity incentive plan are linked to the implementatio n of the company's measures to 12 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 fill the rewards. Equity incentive commitment Other commitments to the company's minority shareholders Commitment to fulfill Yes on time IV. Investment in Securities □ Applicable √ Not applicable There are no securities investments in the reporting period. V. Entrusted Financial Management □ Applicable √ Not applicable There is no entrusted financial management in the reporting period. VI. Investment in Derivatives □ Applicable √ Not applicable There is no investment in derivatives in the reporting period. VII. Registration form of Activities such as Research, Communication, Interview in this Reporting Period □ Applicable √ Not applicable There is no researches, visits and interviews received in the reporting period. VIII. Violation of Regulations in Provision of External Guaranty □ Applicable √ Not applicable There is no violation of regulations in provision of external guaranty during the reporting period. IX. Illustrations of Non-Operating Occupation of Funds by the Controlling Shareholder and Related Parties □ Applicable √ Not applicable There is no non-operating occupation of funds by the controlling shareholder and related parties. 13 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 IV. Financial Report I. Financial Statements 1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Prepared by: Bengang Steel Plates Co., Ltd. Unit: Yuan Items Sep 30th , 2019 Dec 31st, 2018 Current assets: Cash at bank and on hand 19,984,210,581.72 16,567,471,755.77 Settlement provisions Capital lent Financial assets held for trading Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 2,647,287,059.10 3,580,145,843.38 Accounts receivable 592,287,178.61 639,482,481.45 Receivables financing Prepayments 1,284,152,966.11 1,321,537,514.78 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Other receivables: 208,492,688.07 202,763,964.98 Including: Interest receivables 12,642,974.12 11,608,705.43 Dividend receivables Redemptory financial assets for sale Inventories 9,648,655,795.97 10,677,747,112.40 Contract assets Assets classified as held for sale Non-current assets due within one year Other current assets 330,615,190.73 292,119,771.13 Total current assets 34,695,701,460.31 33,281,268,443.89 Non-current assets: 14 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Loan and advances issued Debt investments Available-for-sale financial assets 1,041,824,829.00 Other debt investments Held-to-maturity investments Long-term receivables Long-term equity investments 2,481,589.04 2,455,681.55 Other equity instrument investments 1,041,824,829.00 Other non-current financial assets Investment properties Fixed assets 25,722,058,707.79 23,924,504,539.97 Construction in progress 1,785,959,831.48 836,594,457.82 Productive biological assets Oil and gas assets Right of use assets Intangible assets 273,141,866.04 278,062,441.04 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 174,168,423.31 191,452,547.21 Other non-current assets 64,027,424.81 76,341,975.35 Total non-current assets 29,063,662,671.47 26,351,236,471.94 Total assets 63,759,364,131.78 59,632,504,915.83 Current Liabilities: Short-term loans 12,535,851,000.00 11,938,490,375.85 Loan from central bank Absorbed deposit and interbank deposit Financial liabilities held for trading Financial liabilities at fair value through profit or loss Derivative financial liabilities Notes payable 10,721,947,779.82 10,013,192,014.02 Accounts payable 8,297,245,042.10 5,522,042,811.65 Advance from customers 3,716,963,704.35 3,331,854,098.42 15 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Contract Liabilities Financial assets sold for repurchase Deposits from customers and interbank Acting trading securities Acting underwriting securities Employee benefits payable 50,531,098.73 51,466,231.72 Current tax liabilities 55,344,641.91 515,752,369.68 Other payables 850,901,676.15 862,511,178.96 Including: Interest payables 8,014,283.24 9,658,681.99 Dividend payables Handling charges and commission payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one 2,288,751,448.16 350,965,576.32 year Other current liabilities Total current liabilities 38,517,536,391.22 32,586,274,656.62 Non-current liabilities: Provision for insurance contract Long-term loans 4,972,547,175.82 7,083,640,094.16 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 74,746,302.05 13,686,705.92 Long-term employee benefits payables Estimated liabilities Deferred income 230,018,022.97 289,499,002.97 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 5,277,311,500.84 7,386,825,803.05 Total liabilities 43,794,847,892.06 39,973,100,459.67 Shareholders’ equity: Share capital 3,875,371,532.00 3,875,371,532.00 16 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 12,343,209,847.29 12,343,209,847.29 Less: treasury shares Other comprehensive income Special reserves 20,609,493.36 683,937.71 Surplus reserves 961,105,529.85 961,105,529.85 General risk reserves Undistributed profits 2,239,557,940.10 1,945,887,269.82 Total equity attributable to equity holders of 19,439,854,342.60 19,126,258,116.67 the parent company Non-controlling interests 524,661,897.12 533,146,339.49 Total shareholder’s equity 19,964,516,239.72 19,659,404,456.16 Total liabilities and shareholder’s equity 63,759,364,131.78 59,632,504,915.83 Legal Representative: Gao Lie Person in charge of accounting: Shen Qiang Accounting Dept. Leader: Zhao Zhonghua 2. STATEMENT OF FINANCIAL POSITION OF THE PARENT COMPANY Unit: Yuan Items Sep 30th, 2019 Dec 31st, 2018 Current assets: Cash at bank and on hand 18,280,266,796.50 15,536,305,375.00 Financial assets held for trading Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 2,570,575,588.41 3,356,020,598.89 Accounts receivable 377,395,508.27 409,553,059.27 Receivables financing Prepayments 1,262,333,417.87 1,309,194,738.97 Other receivables 221,109,216.42 235,037,391.46 Including: Interest receivables 11,054,927.27 9,815,280.04 Dividend receivables Inventories 8,187,028,960.76 8,681,362,081.72 17 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Contract assets Assets classified as held for sale Non-current assets due within one year Other current assets 265,082,350.56 193,989,096.20 Total current assets 31,163,791,838.79 29,721,462,341.51 Non-current assets: Debt investments Available-for-sale financial assets 1,041,624,829.00 Other debt investments Held-to-maturity investment Long-term receivables Long-term equity investments 2,016,281,902.16 2,016,281,902.16 Other equity instrument investments 1,041,624,829.00 Other non-current financial assets Investment properties Fixed assets 24,088,077,920.91 22,035,187,328.57 Construction in progress 1,770,671,281.92 825,553,510.15 Productive biological assets Oil and gas assets Right of use assets Intangible assets 146,296,575.00 148,776,177.96 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 80,389,854.83 96,220,003.00 Other non-current assets 64,027,424.81 76,341,975.35 Total non-current assets 29,207,369,788.63 26,239,985,726.19 Total assets 60,371,161,627.42 55,961,448,067.70 Current Liabilities: Short-term loans 11,235,851,000.00 10,624,270,375.85 Financial assets held for trading Financial liabilities at fair value through profit or loss Derivative financial liabilities 18 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Notes payable 8,554,883,676.61 9,213,748,427.22 Accounts payable 10,401,360,265.58 5,940,816,426.48 Advance from customers 3,570,678,789.25 3,189,143,565.45 Contract liabilities Employee benefits payable 50,140,067.57 49,378,095.47 Current tax liabilities 5,563,337.07 507,003,883.57 Other payables 522,902,727.37 538,051,513.13 Including: Interest payables 6,247,124.51 7,341,833.33 Dividend payables Liabilities held for sale Non-current liabilities due within one 2,288,751,448.16 350,965,576.32 year Other current liabilities Total current liabilities 36,630,131,311.61 30,413,377,863.49 Non-current liabilities: Long-term loans 4,972,547,175.82 7,083,640,094.16 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 74,746,302.05 13,686,705.92 Long-term employee benefits payable Estimated liabilities Deferred incomes 230,018,022.97 289,499,002.97 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 5,277,311,500.84 7,386,825,803.05 Total liabilities 41,907,442,812.45 37,800,203,666.54 Shareholders’ equity: Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 11,923,058,165.17 11,923,058,165.17 19 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Less: treasury shares Other comprehensive income Special reserves 16,323,073.17 525,218.48 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed profits 1,687,860,514.78 1,401,183,955.66 Total shareholder’s equity 18,463,718,814.97 18,161,244,401.16 Total liabilities and shareholder’s equity 60,371,161,627.42 55,961,448,067.70 3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF THE CURRENT REPORTING PERIOD Unit: Yuan Items The Current Period The Previous Period 1. Total operating income 14,441,830,940.38 13,313,390,671.44 Including: Operating income 14,441,830,940.38 13,313,390,671.44 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 14,421,363,860.63 13,269,371,473.96 Including: Operating cost 13,739,273,641.14 11,807,011,528.70 Interest cost Expenditure for handling charges and commission Surrender value Net expenditure for compensation Net provision for insurance contract appropriated Bonus payment for policy Reinsurance premium Taxes and surcharges 60,775,436.14 65,070,725.45 Selling and distribution expenses 257,155,173.90 277,192,418.87 General and administrative 219,140,981.53 194,084,503.86 expenses Research and development 7,306,019.67 744,560.38 expenses Financial expenses 137,712,608.25 925,267,736.70 20 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Including: interest expenses 136,052,012.01 341,799,842.63 Interest incomes 89,695,933.07 47,196,277.02 Add: Other incomes 20,821,500.00 22,139,558.33 Income on investment ("-" for loss) Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortised cost ("-" for loss) Exchange Income ("-" for loss) Hedging income from net exposure (“-" for loss) Gains from the change in fair value (“-" for loss) Expected credit losses (“-" for loss) 2,093,121.45 Asset impairment losses (“-" for loss) 6,821,520.16 Assets disposal gains(“-” for loss) 579,216.73 284,086.70 3. Operating profit ("-" for loss) 43,960,917.93 73,264,362.67 Add: Non-operating income 1,506,324.18 160,456.93 Less: Non-operating expenses 6,120,953.63 581,084.33 4. Total profit ("-" for loss) 39,346,288.48 72,843,735.27 Less: Income tax expenses 4,904,499.90 5,182,120.12 5. Net Profit ("-" for loss) 34,441,788.58 67,661,615.15 (1) Classification by continuing operating 1 Net profit from continuing 34,441,788.58 67,661,615.15 operation 2 Net profit from discontinued operation (2) Classification by ownership 1 Net profit attributable to the 34,229,631.12 68,230,224.01 owners of parent company 2 Net profit attributable to non- 212,157.46 -568,608.86 controlling shareholders 6. Other comprehensive income after tax Other comprehensive income attributable to owners of parent company after tax 21 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 1) Other comprehensive income items that will not be reclassified into gains/losses (1) . Re-measurement of defined benefit plans of changes in net debt or net assets (2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss (3). Changes of fair value of other equity instrument investments (4). Changes in the fair value of the company's own credit risk (5). Others 2) Other comprehensive income that will be reclassified into profit or loss (1) . Other comprehensive income under the equity method can be reclassified into profit or loss (2). Gains and losses from fair value changes of other debt investments (3). Gains and losses from fair value changes of available-for-sale financial assets (4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income (5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments (6). Credit impairment losses of other debt investments (7). Effective portion of gains or losses from cash flow hedging (8). Translation differences in foreign currency financial statements (9). Others Other comprehensive income attributable to non-controlling shareholders after tax 7. Total comprehensive income 34,441,788.58 67,661,615.15 22 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Total comprehensive income attributable 34,229,631.12 68,230,224.01 to owners of parent company Total comprehensive income attributable 212,157.46 -568,608.86 to non-controlling shareholders 8. Earnings per share: 1) Basic earnings per share 0.01 0.02 2) Diluted earnings per share 0.01 0.02 The current business combination under common control, the net profits of the combined party before achieved: Yuan, net profit of previous period of the combined party realized: Yuan. Legal Representative: Gao Lie Person in charge of accounting: Shen Qiang Accounting Dept. Leader: Zhao Zhonghua 4. STATEMENT OF COMPREHENSIVE INCOME OF THE PARENT COMPANY OF THE CURRENT REPORTING PERIOD Unit: Yuan Items The Current Period The Previous Period 1. Total operating income 14,566,987,831.66 12,985,694,384.88 Less: Operating cost 14,024,765,556.43 11,617,944,541.11 Taxes and surcharges 49,468,259.31 57,126,440.52 Selling and distribution expenses 147,799,392.26 175,224,699.33 General and administrative expenses 205,034,439.76 181,799,889.96 Research and development expenses 7,306,019.67 744,560.38 Financial expenses 127,265,933.34 912,638,828.57 Including: interest expenses 120,934,881.27 326,523,217.57 Interest incomes 84,996,191.09 45,650,825.86 Add: Other incomes 20,821,500.00 22,139,558.33 Income on investment ("-" for loss) 27,594,915.42 3,493,150.68 Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortised cost ("-" for loss) Hedging income from net exposure (“-" for loss) Gains from the change in fair value (“-" for loss) Expected credit losses (“-" for loss) 1,245,121.45 23 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Asset impairment losses (“-" for loss) 6,821,520.16 Assets disposal gains(“-” for loss) 579,216.73 284,086.70 2. Operating profit ("-" for loss) 55,588,984.49 69,460,590.20 Add: Non-operating income 1,141,958.73 125,720.44 Less: Non-operating expenses 6,116,261.39 575,548.65 3. Total profit ("-" for loss) 50,614,681.83 69,010,761.99 Less: Income tax expenses 521,085.42 1,705,380.04 4. Net Profit ("-" for loss) 50,093,596.41 67,305,381.95 (1) Net profit from continuing operation 50,093,596.41 67,305,381.95 ("-" for loss) (2) Net profit from discontinued operation ("-" for loss) 5. Other comprehensive income after tax 1) Other comprehensive income items that will not be reclassified into gains/losses (1) . Re-measurement of defined benefit plans of changes in net debt or net assets (2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss (3). Changes of fair value of other equity instrument investments (4). Changes in the fair value of the company's own credit risk (5). Others 2) Other comprehensive income that will be reclassified into profit or loss (1) . Other comprehensive income under the equity method can be reclassified into profit or loss (2). Gains and losses from fair value changes of other debt investments (3). Gains and losses from fair value changes of available-for-sale financial assets (4). Gains and losses resulting from reclassification of financial assets 24 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 recognised in other comprehensive income (5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments (6). Credit impairment losses of other debt investments (7). Effective portion of gains or losses from cash flow hedging (8). Translation differences in foreign currency financial statements (9). Others 6. Total comprehensive income 50,093,596.41 67,305,381.95 7. Earnings per share: 1) Basic earnings per share 2) Diluted earnings per share 5. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT REPORTING PERIOD Unit: Yuan Items The Current Period The Previous Period 1. Total operating income 38,544,426,107.52 36,754,638,048.58 Including: Operating income 38,544,426,107.52 36,754,638,048.58 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 38,043,189,142.86 36,008,275,762.90 Including: Operating cost 35,806,886,370.79 32,611,218,949.68 Interest cost Expenditure for handling charges and commission Surrender value Net expenditure for compensation Net provision for insurance contract appropriated Bonus payment for policy 25 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Reinsurance premium Taxes and surcharges 174,900,799.11 218,378,101.09 Selling and distribution expenses 831,600,373.04 791,230,427.82 General and administrative 665,908,793.30 655,926,928.42 expenses Research and development 22,714,491.95 3,215,201.91 expenses Financial expenses 541,178,314.67 1,728,306,153.98 Including: interest expenses 722,542,274.70 916,801,457.83 Interest incomes 216,779,712.65 108,801,680.36 Add: Other incomes 62,516,500.00 63,413,797.03 Income on investment ("-" for loss) 25,907.49 3,493,150.68 Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortised cost ("-" for loss) Exchange Income ("-" for loss) Hedging income from net exposure (“-" for loss) Gains from the change in fair value (“-" for loss) Expected credit losses (“-" for loss) 5,844,635.28 Asset impairment losses (“-" for loss) 27,739,483.80 Assets disposal gains(“-” for loss) 2,997,921.07 1,109,667.33 6. Operating profit ("-" for loss) 572,621,928.50 842,118,384.52 Add: Non-operating income 9,716,506.42 2,298,854.73 Less: Non-operating expenses 64,095,275.68 1,963,486.59 7. Total profit ("-" for loss) 518,243,159.24 842,453,752.66 Less: Income tax expenses 30,866,681.63 16,818,346.16 8. Net Profit ("-" for loss) 487,376,477.61 825,635,406.50 (3) Classification by continuing operating 1 Net profit from continuing 487,376,477.61 825,635,406.50 operation 2 Net profit from discontinued 26 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 operation (4) Classification by ownership 1 Net profit attributable to the 487,439,246.88 825,182,211.60 owners of parent company 2 Net profit attributable to non- -62,769.27 453,194.90 controlling shareholders 6. Other comprehensive income after tax Other comprehensive income attributable to owners of parent company after tax 1) Other comprehensive income items that will not be reclassified into gains/losses (1) . Re-measurement of defined benefit plans of changes in net debt or net assets (2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss (3). Changes of fair value of other equity instrument investments (4). Changes in the fair value of the company's own credit risk (5). Others 2) Other comprehensive income that will be reclassified into profit or loss (1) . Other comprehensive income under the equity method can be reclassified into profit or loss (2). Gains and losses from fair value changes of other debt investments (3). Gains and losses from fair value changes of available-for-sale financial assets (4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income (5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments (6). Credit impairment losses of 27 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 other debt investments (7). Effective portion of gains or losses from cash flow hedging (8). Translation differences in foreign currency financial statements (9). Others Other comprehensive income attributable to non-controlling shareholders after tax 7. Total comprehensive income 487,376,477.61 825,635,406.50 Total comprehensive income attributable 487,439,246.88 825,182,211.60 to owners of parent company Total comprehensive income attributable -62,769.27 453,194.90 to non-controlling shareholders 8. Earnings per share: 1) Basic earnings per share 0.13 0.21 2) Diluted earnings per share 0.13 0.21 The current business combination under common control, the net profits of the combined party before achieved: Yuan, net profit of previous period of the combined party realized: Yuan. Legal Representative: Gao Lie Person in charge of accounting: Shen Qiang Accounting Dept. Leader: Zhao Zhonghua 6. STATEMENT OF COMPREHENSIVE INCOME OF THE PARENT COMPANY FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT REPORTING PERIOD Unit: Yuan Items The Current Period The Previous Period 1. Total operating income 38,014,203,689.59 36,668,559,494.02 Less: Operating cost 35,782,055,553.61 33,019,136,503.31 Taxes and surcharges 133,935,663.72 192,669,833.48 Selling and distribution expenses 482,893,940.32 440,779,566.79 General and administrative expenses 624,372,438.11 619,992,907.29 Research and development expenses 22,714,491.95 3,215,201.91 Financial expenses 515,337,847.93 1,687,162,319.17 Including: interest expenses 679,030,224.93 870,205,608.54 Interest incomes 199,185,818.03 103,955,252.77 Add: Other incomes 62,516,500.00 63,413,797.03 Income on investment ("-" for loss) 27,594,915.42 3,493,150.68 28 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortised cost ("-" for loss) Hedging income from net exposure (“-" for loss) Gains from the change in fair value (“-" for loss) Expected credit losses (“-" for loss) 4,996,635.28 Asset impairment losses (“-" for loss) 27,739,483.80 Assets disposal gains(“-” for loss) 3,044,923.32 1,109,667.33 2. Operating profit ("-" for loss) 551,046,727.97 801,359,260.91 Add: Non-operating income 9,279,999.48 1,840,469.10 Less: Non-operating expenses 64,051,443.56 1,957,950.91 3. Total profit ("-" for loss) 496,275,283.89 801,241,779.10 Less: Income tax expenses 15,830,148.17 7,384,717.21 4. Net Profit ("-" for loss) 480,445,135.72 793,857,061.89 (1) Net profit from continuing operation 480,445,135.72 793,857,061.89 ("-" for loss) (2) Net profit from discontinued operation ("-" for loss) 5. Other comprehensive income after tax 1) Other comprehensive income items that will not be reclassified into gains/losses (1) . Re-measurement of defined benefit plans of changes in net debt or net assets (2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss (3). Changes of fair value of other equity instrument investments (4). Changes in the fair value of the company's own credit risk (5). Others 2) Other comprehensive income that will be reclassified into profit or loss 29 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 (1) . Other comprehensive income under the equity method can be reclassified into profit or loss (2). Gains and losses from fair value changes of other debt investments (3). Gains and losses from fair value changes of available-for-sale financial assets (4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income (5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments (6). Credit impairment losses of other debt investments (7). Effective portion of gains or losses from cash flow hedging (8). Translation differences in foreign currency financial statements (9). Others 6. Total comprehensive income 480,445,135.72 793,857,061.89 7. Earnings per share: 1) Basic earnings per share 2) Diluted earnings per share 7. CONSOLIDATED STATEMENT OF CASH FLOWS FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT PERIOD Unit: Yuan Items The Current Period The Previous Period 1. Cash flow from operating activities: Cash received from sale of goods or 26,790,594,559.41 26,188,229,365.29 rendering of services Net increase of customers’ deposit and interbank deposit Net increase of loan from central bank Net increase of loans from other 30 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 financial institutions Cash received for premium of original insurance contract Net cash received for reinsurance business Net increase of deposit and investment of the insured Net increase of Financial assets at fair value through profit or loss Cash from receiving interest, handling charge and commission Net increase of loans from other financial institutions Net increase of fund for buy-back business Tax rebate received 330,537,134.71 284,799,886.80 Other cash received relating to 179,458,663.12 83,617,244.68 operating activities Subtotal of cash inflow received from 27,300,590,357.24 26,556,646,496.77 operation activities Cash paid for goods and services 20,530,964,210.54 17,207,337,978.80 Net increase of customer’s loan and advances Net increase of deposit in central bank and interbank deposit Cash for payment of compensation for original insurance contract Cash for payment of interest, handling charge and commission Cash for payment of policy bonus Cash paid to and on behalf of 1,450,655,474.24 1,438,947,941.23 employees Cash paid for all types of taxes 911,658,861.03 618,124,974.18 Other cash paid relating to operating 351,573,590.15 358,768,202.58 activities Subtotal of cash outflow received from 23,244,852,135.96 19,623,179,096.79 operation activities Net cash flows generated from operating 4,055,738,221.28 6,933,467,399.98 31 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 activities 2. Cash flows from investing activities: Cash received from return on 500,000,000.00 investments Cash received from distribution of 3,493,150.68 dividends or profit Net cash received from disposal of fixed assets, intangible assets and other long- term assets Net cash received from disposal of subsidiary and other operating units Other cash paid relating to investing activities Subtotal of cash inflow received from 503,493,150.68 investing activities Cash paid for acquisition of fixed assets, intangible assets and other long-term 843,532,197.66 1,261,912,086.54 assets Cash paid for acquisition of investments Net increase of mortgage loan Net cash received from subsidiary and other operating unit Other cash paid relating to investing activities Subtotal of cash outflows from investing 843,532,197.66 1,261,912,086.54 activities The net cash flow generated by investment -843,532,197.66 -758,418,935.86 activities 3. Cash flows from financing activities: Proceeds from investment 3,965,799,988.19 Including: Proceeds from investment of non-controlling shareholders of subsidiary Proceeds from borrowings 7,482,429,000.00 21,592,058,293.24 Other proceeds relating to financing activities Subtotal cash inflow received from financing 7,482,429,000.00 25,557,858,281.43 activities Cash repayments of borrowings 6,938,475,606.71 29,751,998,311.55 32 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Cash payments for distribution of 1,194,142,072.60 1,220,039,424.07 dividends, profit or interest expenses Including: Cash paid to non-controlling shareholders as dividend and profit by subsidiaries Other cash payments relating to financing activities Subtotal of cash outflows from financing 8,132,617,679.31 30,972,037,735.62 activities The net cash flow generated by financing -650,188,679.31 -5,414,179,454.19 activities 4. Effect of foreign exchange rate changes on 57,000,333.44 173,516,701.33 cash and cash equivalents 5. Net increase in cash and cash equivalents 2,619,017,677.75 934,385,711.26 Add: Cash and cash equivalents at the 11,752,548,621.97 12,317,576,778.93 beginning of the period 6. Cash and cash equivalents at the ending of 14,371,566,299.72 13,251,962,490.19 the period 8. STATEMENT OF CASH FLOWS OF THE PARENT COMPANY FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT PERIOD Unit: Yuan Items The Current Period The Previous Period 1.Cash flow from operating activities: Cash received from sale of goods or 25,300,199,068.22 25,652,120,540.51 rendering of services Tax rebate received 284,437,850.97 119,119,395.04 Other cash received relating to 174,941,066.19 80,682,696.51 operating activities Subtotal of cash inflow received from 25,759,577,985.38 25,851,922,632.06 operation activities Cash paid for goods and services 18,900,585,331.92 17,009,484,822.48 Cash paid to and on behalf of 1,371,069,525.86 1,372,731,925.30 employees Cash paid for all types of taxes 789,815,447.75 528,120,047.39 Other cash paid relating to operating 310,224,763.98 322,705,026.46 activities 33 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Subtotal of cash outflow received from 21,371,695,069.51 19,233,041,821.63 operation activities Net cash flows generated from operating 4,387,882,915.87 6,618,880,810.43 activities 2. Cash flows from investing activities: Cash received from return on 500,000,000.00 investments Cash received from distribution of 3,493,150.68 dividends or profit Net cash received from disposal of fixed assets, intangible assets and other long- term assets Net cash received from disposal of subsidiary and other operating units Other cash paid relating to investing activities Subtotal of cash inflow received from 503,493,150.68 investing activities Cash paid for acquisition of fixed assets, intangible assets and other long-term 836,697,138.22 1,241,365,059.32 assets Cash paid for acquisition of investments 259,300,000.00 Net cash received from subsidiary and other operating unit Other cash paid relating to investing activities Subtotal of cash outflows from investing 836,697,138.22 1,500,665,059.32 activities The net cash flow generated by investment -836,697,138.22 -997,171,908.64 activities 3. Cash flows from financing activities: Proceeds from investment 3,965,799,988.19 Proceeds from borrowings 6,282,429,000.00 20,515,395,400.00 Other proceeds relating to financing activities Subtotal cash inflow received from financing 6,282,429,000.00 24,481,195,388.19 activities Cash repayments of borrowings 5,438,545,606.71 28,587,442,043.95 34 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Cash payments for distribution of 1,112,682,499.61 1,176,598,972.79 dividends, profit or interest expenses Other cash payments relating to financing activities Subtotal of cash outflows from financing 6,551,228,106.32 29,764,041,016.74 activities The net cash flow generated by financing -268,799,106.32 -5,282,845,628.55 activities 4. Effect of foreign exchange rate changes on 56,922,645.03 173,504,704.68 cash and cash equivalents 5. Net increase in cash and cash equivalents 3,339,309,316.36 512,367,977.92 Add: Cash and cash equivalents at the 10,807,824,843.20 12,152,285,550.21 beginning of the period 6. Cash and cash equivalents at the ending of 14,147,134,159.56 12,664,653,528.13 the period 35 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 II. Adjustments of Financial Statements 1. Adjustments of beginning balance due to the first-time implementation of the new financial instruments guidelines, new revenue standards, new lease standards √ Applicable □ Not applicable CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unit: yuan Items Dec 31st 2018 Jan 1st 2019 Adjustment amount Current assets: Cash at bank and on hand 16,567,471,755.77 16,567,471,755.77 Settlement provisions Capital lent Financial assets held for trading Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 3,580,145,843.38 3,580,145,843.38 Accounts receivable 639,482,481.45 639,482,481.45 Receivables financing Prepayments 1,321,537,514.78 1,321,537,514.78 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Other receivables: 202,763,964.98 202,763,964.98 Including: Interest receivables 11,608,705.43 11,608,705.43 Dividend receivables Redemptory financial assets for sale Inventories 10,677,747,112.40 10,677,747,112.40 Contract assets Assets classified as held for sale Non-current assets due within one year Other current assets 292,119,771.13 292,119,771.13 36 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Total current assets 33,281,268,443.89 33,281,268,443.89 Non-current assets: Loan and advances issued Debt investments Available-for-sale financial assets 1,041,824,829.00 -1,041,824,829.00 Other debt investments Held-to-maturity investments Long-term receivables Long-term equity investments 2,455,681.55 2,455,681.55 Other equity instrument 1,041,824,829.00 1,041,824,829.00 investments Other non-current financial assets Investment properties Fixed assets 23,924,504,539.97 23,924,504,539.97 Construction in progress 836,594,457.82 836,594,457.82 Productive biological assets Oil and gas assets Right of use assets Intangible assets 278,062,441.04 278,062,441.04 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 191,452,547.21 191,452,547.21 Other non-current assets 76,341,975.35 76,341,975.35 Total non-current assets 26,351,236,471.94 26,351,236,471.94 Total assets 59,632,504,915.83 59,632,504,915.83 Current Liabilities: Short-term loans 11,938,490,375.85 11,938,490,375.85 Loan from central bank Absorbed deposit and interbank deposit Financial liabilities held for trading Financial liabilities at fair value through profit or loss 37 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Derivative financial liabilities Note payables 10,013,192,014.02 10,013,192,014.02 Account payables 5,522,042,811.65 5,522,042,811.65 Advance from customers 3,331,854,098.42 3,331,854,098.42 Financial assets sold for repurchase Deposits from customers and interbank Acting trading securities Acting underwriting securities Employee benefits payable 51,466,231.72 51,466,231.72 Current tax liabilities 515,752,369.68 515,752,369.68 Other payables 862,511,178.96 862,511,178.96 Including: Interest payables 9,658,681.99 9,658,681.99 Dividend payables Handling charges and commission payable Reinsurance accounts payable Contract liabilities Liabilities held for sale Non-current liabilities due within 350,965,576.32 350,965,576.32 one year Other current liabilities Total current liabilities 32,586,274,656.62 32,586,274,656.62 Non-current liabilities: Provision for insurance contract Long-term loans 7,083,640,094.16 7,083,640,094.16 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 13,686,705.92 13,686,705.92 Long-term employee benefits payables Estimated liabilities 38 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Deferred income 289,499,002.97 289,499,002.97 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 7,386,825,803.05 7,386,825,803.05 Total liabilities 39,973,100,459.67 39,973,100,459.67 Shareholders’ equity: Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 12,343,209,847.29 12,343,209,847.29 Less: treasury shares Other comprehensive income Special reserves 683,937.71 683,937.71 Surplus reserves 961,105,529.85 961,105,529.85 General risk reserves Undistributed profits 1,945,887,269.82 1,945,887,269.82 Total equity attributable to equity 19,126,258,116.67 19,126,258,116.67 holders of the parent company Non-controlling interests 533,146,339.49 533,146,339.49 Total shareholder’s equity 19,659,404,456.16 19,659,404,456.16 Total liabilities and shareholder’s 59,632,504,915.83 59,632,504,915.83 equity Notes: STATEMENOT OF FINANCIAL POSITION OF THE PARENT COMPANY Unit: Yuan Items Dec 31st 2018 Jan 1st 2019 Adjustment amount Current assets: Cash at bank and on hand 15,536,305,375.00 15,536,305,375.00 Financial assets held for trading Financial assets at fair value through profit or loss Derivative financial assets Notes receivable 3,356,020,598.89 3,356,020,598.89 Accounts receivable 409,553,059.27 409,553,059.27 39 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Receivables financing Prepayments 1,309,194,738.97 1,309,194,738.97 Other receivables 235,037,391.46 235,037,391.46 Including: Interest receivables 9,815,280.04 9,815,280.04 Dividend receivables Inventories 8,681,362,081.72 8,681,362,081.72 Contract assets Assets classified as held for sale Non-current assets due within one year Other current assets 193,989,096.20 193,989,096.20 Total current assets 29,721,462,341.51 29,721,462,341.51 Non-current assets: Debt investments Available-for-sale financial assets 1,041,624,829.00 -1,041,624,829.00 Other debt investments Held-to-maturity investment Long-term receivables Long-term equity investments 2,016,281,902.16 2,016,281,902.16 Other equity instrument investments 1,041,624,829.00 1,041,624,829.00 Other non-current financial assets Investment properties Fixed assets 22,035,187,328.57 22,035,187,328.57 Construction in progress 825,553,510.15 825,553,510.15 Productive biological assets Oil and gas assets Right of use assets Intangible assets 148,776,177.96 148,776,177.96 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 96,220,003.00 96,220,003.00 Other non-current assets 76,341,975.35 76,341,975.35 Total non-current assets 26,239,985,726.19 26,239,985,726.19 Total assets 55,961,448,067.70 55,961,448,067.70 40 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Current Liabilities: Short-term loans 10,624,270,375.85 10,624,270,375.85 Financial assets held for trading Financial liabilities at fair value through profit or loss Derivative financial liabilities Notes payable 9,213,748,427.22 9,213,748,427.22 Accounts payable 5,940,816,426.48 5,940,816,426.48 Advance from customers 3,189,143,565.45 3,189,143,565.45 Contract liabilities Employee benefits payable 49,378,095.47 49,378,095.47 Current tax liabilities 507,003,883.57 507,003,883.57 Other payables 538,051,513.13 538,051,513.13 Including: Interest payables 7,341,833.33 7,341,833.33 Dividend payables Liabilities held for sale Non-current liabilities due within one year 350,965,576.32 350,965,576.32 Other current liabilities Total current liabilities 30,413,377,863.49 30,413,377,863.49 Non-current liabilities: Long-term loans 7,083,640,094.16 7,083,640,094.16 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 13,686,705.92 13,686,705.92 Long-term employee benefits payable Estimated liabilities Deferred incomes 289,499,002.97 289,499,002.97 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 7,386,825,803.05 7,386,825,803.05 Total liabilities 37,800,203,666.54 37,800,203,666.54 Shareholders’ equity: 41 Bengang Steel Plates Co., Ltd. Third Quarter Report 2019 Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserves 11,923,058,165.17 11,923,058,165.17 Less: treasury shares Other comprehensive income Special reserves 525,218.48 525,218.48 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed profits 1,401,183,955.66 1,401,183,955.66 Total shareholder’s equity 18,161,244,401.16 18,161,244,401.16 Total liabilities and shareholder’s equity 55,961,448,067.70 55,961,448,067.70 Notes: 2. Retroactive adjustment due to the first time implementation of the new financial instruments guidelines and new lease standards □ Applicable √ Not applicable III. Audit report Whether the third quarter report is audited □ Yes √ No The third quarter report is not audited. 42