Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Stock Code: 000761 Abbreviation: Bengang Bancai Announcement No.:2022-028 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and there are no misrepresentations or misleading statements, or material omission. Important Notice: 1. 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. 2. The person in charge of the company, the person in charge of accounting work, and the person in charge of the accounting organization (accounting officer), hereby confirm that the financial report in this quarterly report is true, accurate and complete. 3. Whether the third quarter report is audited □ Yes √ No 1 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 I. Summary of Financial Index 1. 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 Current reporting Previous reporting Changes (+/-) period period Operating income (RMB) 16,621,491,876.35 15,252,265,770.99 8.98% Net profit attributable to the shareholders of 433,939,380.46 686,599,759.65 -36.80% the listed company (RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 423,326,955.85 678,208,256.33 -37.58% listed company (RMB) Net cash flows from operating activities 289,055,672.76 -966,470,265.23 130.35% (RMB) Basic earnings per share (RMB/Share) 0.11 0.18 -38.89% Diluted earnings per share (RMB/Share) 0.11 0.18 -38.89% Weighted average return on equity 1.91% 3.21% -1.30% End of the current End of the previous Changes (+/-) reporting period reporting period Total assets (RMB) 51,152,657,504.80 55,147,123,275.30 -7.24% Net assets attributable to shareholders of the 22,953,219,837.58 22,500,969,014.30 2.01% listed company (RMB) 2. Items and amount of non-recurring profit and loss √ Applicable □ Not applicable Unit: Yuan Items Current reporting period Notes Profit or loss from disposal of non-current assets (including the 3,778,746.80 write-off part for which assets 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 operation, meeting the regulation of national policy 15,494,362.00 and enjoyed constantly in certain quota or quantity according to a certain standard) Other non-operating revenue and expenditure other than above items -5,097,833.81 Less: Impact of income tax 3,543,818.75 Impact of minority interests (after tax) 19,031.63 Total 10,612,424.61 -- 2 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Other circumstances can be defined as non-recurring profit and loss: □ Applicable √ Not applicable There is no other circumstances can be defined as non-recurring profit and loss. 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. 3. 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 disbursement of Cash at bank and on hand -36% mature bills and loan repayment. Bill endorsement is greater than nots Notes receivables -36% received. Other current assets 39% Due to the increase of input VAT. Notes payables -68% Due to the maturity of notes. Due to the increase of long term loans and Non-current liabilities due within 55% lease liabilities reclassified into one year non-current liabilities due within one year. Items and reasons for the changes of more than 30% compared to January to March 2021 in the consolidated financial statements Increase / 2. Statement of comprehensive income Reasons Decrease 3 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Due to the decrease of VAT during the Tax and surcharges -58% current period. Increase / 3. Statement of cash flows Reasons Decrease Cash received from sale of goods or Due to the increase of revenue and cash 33% rendering of services prepaid by customers. Cash paid for acquisition of fixed Due to the decrease of cash paid for assets, intangible assets and other -69% acquisition of assets. long-term assets Cash received of borrowings -87% Due to the decrease of borrowings. Due to the decrease of cash paid for debt Cash repayments of borrowings -38% repayment. II. Shareholders Information 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 69,331 0 been restored at end of the reporting reporting period period(if any) Shareholding by Top 10 shareholders Amount of Number of share pledged/frozen Name of the Nature of Proportion of Quantity of restricted shares shareholder shareholder shares held shares State of share Quantity held State-owne Pledged 110,000,000 Benxi Steel & Iron d legal 58.65% 2,409,628,094 (Group) Co., Ltd. Frozen 102,100,000 person State-owne Bengang Group d legal 17.95% 737,371,532 Co., Ltd. person Domestic Zhang Wenyou natural 0.47% 19,149,967 person Hong Kong Foreign 0.46% 19,013,163 Securities legal person 4 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Clearing Company Ltd. Domestic Lyu Ruijun natural 0.39% 15,944,000 person Domestic Zhou Wei natural 0.20% 8,245,031 person MORGAN STANLEY & CO. Overseas 0.19% 8,005,819 INTERNATIONA legal person L PLC China Construction Bank - Huaan State-owned Enterprise Reform Others 0.19% 7,858,800 Theme Flexible Allocation of Hybrid Securities Investment Fund State-owne Guosen Securities d legal 0.18% 7,500,000 Co., Ltd. person CHINA INTERNATIONA L CAPITAL Overseas CORPORATION 0.17% 6,999,972 legal person HONG KONG SECURITIES LTD. 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) Common shares in 2,409,628,094 2,409,628,094 Co., Ltd. RMB Common shares in Bengang Group Co., Ltd. 737,371,532 737,371,532 RMB Common shares in Zhang Wenyou 19,149,967 19,149,967 RMB 5 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Hong Kong Securities Clearing Common shares in 19,013,163 19,013,163 Company Ltd. RMB Common shares in 10,140,800 RMB Lyu Ruijun 15,944,000 Domestic listed 5,803,200 foreign shares Common shares in Zhou Wei 8,245,031 8,245,031 RMB MORGAN STANLEY & CO. Domestic listed 8,005,819 8,005,819 INTERNATIONAL PLC foreign shares China Construction Bank - Huaan State-owned Enterprise Common shares in Reform Theme Flexible 7,858,800 7,858,800 RMB Allocation of Hybrid Securities Investment Fund Common shares in Guosen Securities Co., Ltd. 7,500,000 7,500,000 RMB CHINA INTERNATIONAL CAPITAL CORPORATION Domestic listed 6,999,972 6,999,972 HONG KONG SECURITIES foreign shares LTD. Benxi Steel & Iron (Group) Co., Ltd. and Bengang Group Co., Ltd. are related parties and Related-parties or action-in-concert parties as defined in “Measures for the Administration of the Takeover of Listed acting-in-concert parties among Companies” . It is unknown to the Company whether there is any other related parties or the above-mentioned action-in-concert parties as defined in “Measures for the Administration of the Takeover of Listed shareholders Companies”among the above-mentioned shareholders. Bengang Group Co., Ltd. holds 182,842,883 shares of the company through an ordinary securities account, and holds 554,528,649 shares through asset management plan, therefore, it Shareholders among the top 10 holds a total of 737,371,532 shares. Zhang Wenyou holds 19,149,967 shares of the company participating in securities through an investor's credit securities account. Lyu Ruijun holds 5,803,900 shares of the margin trading (if any) company through an ordinary securities account, and holds 10,140,800 shares of the company through an investor's credit securities account. Zhou Wei holds 8,245,031 shares of the company through an investor's credit securities account. 2. Total Number of Preferred Shareholders and Shareholding of Top 10 Preferred Shareholders □ Applicable √ Not applicable III. Other Major Events □ Applicable √ Not applicable 6 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 IV. Quarterly Financial Statements 1. Financial Statements (1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION Prepared by: Bengang Steel Plates Co., Ltd. Unit: Yuan Items Ending balance Beginning balance Current assets: Cash at bank and on hand 5,623,464,984.27 8,831,095,737.85 Settlement provisions Capital lent Financial assets held for trading Derivative financial assets Notes receivable 982,116,707.54 1,540,482,182.07 Accounts receivable 255,878,793.00 256,850,782.71 Accounts receivable financing 1,764,936,076.15 1,530,735,647.38 Prepayments 1,168,995,371.85 994,370,345.64 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Other receivables: 163,679,106.67 165,937,280.41 Including: Interest receivables 2,523,993.39 Dividend receivables Redemptory financial assets for sale Inventories 9,586,796,173.22 10,190,166,138.98 Contract assets Assets classified as held for sale Non-current assets due within one year Other current assets 1,051,876,175.73 754,948,193.56 Total current assets 20,597,743,388.43 24,264,586,308.60 Non-current assets: Loan and advances issued Debt investments Other debt investments 7 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items Ending balance Beginning balance Long-term receivables Long-term equity investments 2,981,784.07 2,981,784.07 Other equity instrument investments 1,042,024,829.00 1,042,024,829.00 Other non-current financial assets Investment properties Fixed assets 24,944,457,081.23 25,480,674,048.94 Construction in progress 2,667,610,252.77 2,434,182,101.13 Productive biological assets Oil and gas assets Right of use assets 1,425,271,614.71 1,440,365,248.31 Intangible assets 296,076,506.18 297,921,548.81 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 155,122,816.54 153,756,548.31 Other non-current assets 21,369,231.87 30,630,858.13 Total non-current assets 30,554,914,116.37 30,882,536,966.70 Total assets 51,152,657,504.80 55,147,123,275.30 Current Liabilities: Short-term loans 3,349,269,640.00 4,053,088,140.00 Loan from central bank Absorbed deposit and interbank deposit Financial liabilities held for trading Derivative financial liabilities Notes payable 1,471,541,365.35 4,635,083,376.48 Accounts payable 4,712,910,696.78 5,352,272,685.89 Advance from customers Contract Liabilities 5,208,218,604.35 4,708,188,093.78 Financial assets sold for repurchase Deposits from customers and interbank Acting trading securities Acting underwriting securities Employee benefits payable 8,634,687.23 152,095,376.49 8 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items Ending balance Beginning balance Current tax liabilities 28,743,413.28 114,267,988.70 Other payables 1,039,110,555.17 1,348,025,731.98 Including: Interest payables Dividend payables Handling charges and commission payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one 480,732,596.15 310,780,518.14 year Other current liabilities 677,068,418.58 612,064,452.20 Total current liabilities 16,976,229,976.89 21,285,866,363.66 Non-current liabilities: Provision for insurance contract Long-term loans 4,051,850,120.64 4,222,821,771.74 Bonds payable 5,113,488,757.84 5,054,251,668.83 Including: Preferred stock Perpetual bond Lease liabilities 1,397,342,552.69 1,424,667,169.15 Long-term payables Long-term employee benefits payables Estimated liabilities Deferred income 86,101,923.89 93,106,285.89 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 10,648,783,355.06 10,794,846,895.61 Total liabilities 27,625,013,331.95 32,080,713,259.27 Shareholders’ equity: Share capital 4,108,206,077.00 4,108,191,379.00 Other equity instruments 947,869,024.93 947,882,663.63 Including: Preferred stock Perpetual bond Capital reserves 13,272,185,986.26 13,272,134,173.09 9 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items Ending balance Beginning balance Less: treasury shares Other comprehensive income Special reserves 18,596,548.92 337,978.57 Surplus reserves 1,195,116,522.37 1,195,116,522.37 General risk reserves Undistributed profits 3,411,245,678.10 2,977,306,297.64 Total equity attributable to equity holders of 22,953,219,837.58 22,500,969,014.30 the parent company Non-controlling interests 574,424,335.27 565,441,001.73 Total shareholder’s equity 23,527,644,172.85 23,066,410,016.03 Total liabilities and shareholder’s equity 51,152,657,504.80 55,147,123,275.30 Legal Representative: Huo Gang Person in charge of accounting: Jiang Xiaoyu Accounting Dept. Leader: Sun Yanbin (2) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unit: Yuan Items The Current Period The Previous Period 1. Total operating income 16,621,491,876.35 15,252,265,770.99 Including: Operating income 16,621,491,876.35 15,252,265,770.99 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 16,046,070,028.37 14,342,475,515.13 Including: Operating cost 15,654,218,567.07 13,850,889,731.59 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 44,004,448.88 103,677,773.51 10 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period Selling and distribution expenses 31,455,748.09 21,419,092.78 General and administrative 185,355,304.08 197,489,963.37 expenses Research and development 10,539,231.95 9,276,704.82 expenses Financial expenses 120,496,728.30 159,722,249.06 Including: interest expenses 181,890,201.86 248,978,172.74 Interest incomes 40,628,453.50 114,535,834.58 Add: Other incomes 15,494,362.00 16,562,376.50 Income on investment ("-" for loss) Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortised cost 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) 490,217.55 1,012,753.44 Asset impairment losses (“-" for loss) Assets disposal gains(“-” for loss) 3,778,746.80 130,675.05 3. Operating profit ("-" for loss) 595,185,174.33 927,496,060.85 Add: Non-operating income 1,349,902.58 873,594.74 Less: Non-operating expenses 6,447,736.39 6,197,792.66 4. Total profit ("-" for loss) 590,087,340.52 922,171,862.93 Less: Income tax expenses 148,409,306.39 229,308,801.27 5. Net Profit ("-" for loss) 441,678,034.13 692,863,061.66 (1) Classification by continuing operating 1 Net profit from continuing 441,678,034.13 692,863,061.66 operation ("-" for loss) 2 Net profit from discontinued operation ("-" for loss) (2) Classification by ownership 11 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period 1 Net profit attributable to the 433,939,380.46 686,599,759.65 owners of parent company 2 Net profit attributable to 7,738,653.67 6,263,302.01 non-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 resulting from reclassification of financial assets recognised in other comprehensive income (4). Credit impairment losses of other debt investments (5). Effective portion of gains or losses from cash flow hedging (6). Translation differences in foreign currency financial statements (7). Others 12 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period Other comprehensive income attributable to non-controlling shareholders after tax 7. Total comprehensive income 441,678,034.13 692,863,061.66 Total comprehensive income attributable 433,939,380.46 686,599,759.65 to owners of parent company Total comprehensive income attributable 7,738,653.67 6,263,302.01 to non-controlling shareholders 8. Earnings per share: 1) Basic earnings per share 0.11 0.18 2) Diluted earnings per share 0.11 0.18 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: Huo Gang Person in charge of accounting: Jiang Xiaoyu Accounting Dept. Leader: Sun Yanbin (3) CONSOLIDATED STATEMENT OF CASH FLOWS Unit: Yuan Items The Current Period The Previous Period 1. Cash flow from operating activities: Cash received from sale of goods or 13,265,312,867.96 9,965,304,063.89 rendering of services Net increase of customers’ deposit and interbank deposit Net increase of loan from central bank Net increase of loans from other 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 13 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period financial institutions Net increase of fund for buy-back business Tax rebate received 2,239,644.55 35,592,041.90 Other cash received relating to 50,088,356.08 44,680,105.17 operating activities Subtotal of cash inflow received from 13,317,640,868.59 10,045,576,210.96 operation activities Cash paid for goods and services 12,121,835,737.97 10,187,896,266.01 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 Net increase in funds lent Cash for payment of interest, handling charge and commission Cash for payment of policy bonus Cash paid to and on behalf of 550,253,943.99 499,525,498.95 employees Cash paid for all types of taxes 329,077,236.17 304,963,305.18 Other cash paid relating to operating 27,418,277.70 19,661,406.05 activities Subtotal of cash outflow received from 13,028,585,195.83 11,012,046,476.19 operation activities Net cash flows generated from operating 289,055,672.76 -966,470,265.23 activities 2. Cash flows from investing activities: Cash received from return on investments Cash received from distribution of dividends or profit Net cash received from disposal of fixed assets, intangible assets and other 4,341,972.00 long-term assets Net cash received from disposal of 14 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period subsidiary and other operating units Other cash received relating to investing activities Subtotal of cash inflow received from 4,341,972.00 investing activities Cash paid for acquisition of fixed assets, intangible assets and other long-term 131,364,994.60 420,987,681.05 assets Cash paid for acquisition of investments Net increase of mortgage loan Net cash paid to acquire subsidiaries and other business units Other cash paid relating to investing 3,000,000,000.00 activities Subtotal of cash outflows from investing 131,364,994.60 3,420,987,681.05 activities The net cash flow generated by investment -127,023,022.60 -3,420,987,681.05 activities 3. Cash flows from financing activities: Proceeds from investment Including: Proceeds from investment of non-controlling shareholders of subsidiary Proceeds from borrowings 200,000,000.00 1,512,381,000.00 Other proceeds relating to financing activities Subtotal cash inflow received from financing 200,000,000.00 1,512,381,000.00 activities Cash repayments of borrowings 958,584,275.97 1,556,333,658.67 Cash payments for distribution of 82,795,166.16 266,480,285.50 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 1,041,379,442.13 1,822,813,944.17 activities 15 Bengang Steel Plates Co., Ltd. First Quarter Report 2022 Items The Current Period The Previous Period The net cash flow generated by financing -841,379,442.13 -310,432,944.17 activities 4. Effect of foreign exchange rate changes on 2,952,712.76 1,302,002.14 cash and cash equivalents 5. Net increase in cash and cash equivalents -676,394,079.21 -4,696,588,888.31 Add: Cash and cash equivalents at the 6,299,099,063.48 9,229,417,595.12 beginning of the period 6. Cash and cash equivalents at the ending of 5,622,704,984.27 4,532,828,706.81 the period 2. Audit report Whether the first quarter report is audited □ Yes √ No The first quarter report is not audited. Board of Directors of Bengang Steel Plates Co., Ltd. 16