Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 April 2020 1 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 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. First Quarter Report 2020 II. Company Profile I. Main Accounting data and Financial index Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year □ Yes √ No Jan.-Mar. 2020 Jan.-Mar. 2019 Changes (+/-) Operating income(RMB) 11,728,574,704.88 11,761,190,575.63 -0.28% Net profit attributable to the shareholders of the listed company 177,998,575.36 271,606,318.07 -34.46% (RMB) Net profit after deducting of non- recurring gain/loss attributable to the 168,656,828.67 259,096,025.14 -34.91% shareholders of listed company (RMB) Net Cash flows generated by business 684,846,620.22 2,752,557,195.47 -75.12% operation(RMB) Basic earnings per share (RMB/Share) 0.05 0.07 -28.57% Diluted earnings per share 0.05 0.07 -28.57% (RMB/Share) Weighted average net assets yield (%) 0.91% 1.41% -0.50% 31 Mar. 2020 31 Dec 2019 Changes (+/-) Total assets(RMB) 62,419,899,870.81 60,731,425,193.90 2.78% Net assets attributable to shareholders 19,673,088,666.96 19,487,665,261.17 0.95% of the listed company(RMB) Items and amount of non-recurring profit and loss √ Applicable □ Not applicable Unit: RMB Items Jan.-Mar. 2020 Notes Profit or loss from disposal of non-current assets (including the write-off part for which assets impairment -6,082,450.70 provision is made) Details of government subsidies recorded into current profits and loss(except such government subsidy closely 18,439,817.04 related to the company’s normal business operation, 3 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 meeting the regulation of national policy and enjoyed constantly in certain quota or quantity according to a certain standard) Other non-operating revenue and expenditure other than 108,520.85 above items Less: Impact of income tax 3,116,471.80 Impact of minority interests (after tax) 7,668.70 Total 9,341,746.69 -- 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 Total number of common preferred shareholders shareholders at the end of the 52,784 voting rights restored at the 0 reporting period end of the reporting period (if any) Shareholding by Top 10 shareholders Proportion Amount of Number of share pledged/frozen Name of the Nature of Quantity of of shares restricted shares shareholder shareholder shares State of share Quantity held held Benxi Steel & Pledged 712,545,000 State-owned legal Iron (Group) 61.93% 2,399,831,394 person Frozen 102,100,000 Co., Ltd. Liaoning State-owned legal Provincial 4.77% 184,842,883 person Transportation 4 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Investment Group Co., Ltd. CCB Principal Asset Management – ICBC – CR Trust – CR Others 4.77% 184,842,883 Trust Xing Sheng No. 5 Collective Fund Trust Plan Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Others 4.77% 184,842,883 Rui Feng 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 natural Fang Lei 0.36% 14,126,600 person Agricultural bank of China - China Securities 500 Others 0.30% 11,565,511 Trading Open Index Securities Investment Fund 5 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Domestic natural Fang Huaiyue 0.24% 9,205,501 person Domestic natural Zhang Peng 0.21% 8,287,900 person VANGUARD EMERGING Overseas legal MARKETS 0.21% 8,157,311 person STOCK INDEX FUND Shareholding of top 10 shareholders of unrestricted shares Category of shares Number of non-restricted common shares held Name of the shareholder Category of at the period-end Quantity shares Benxi Steel & Iron (Group) Co., Common shares 2,399,831,394 2,399,831,394 Ltd. in RMB Liaoning Provincial Transportation Common shares 184,842,883 184,842,883 Investment Group Co., Ltd. in RMB CCB Principal Asset Management – ICBC – CR Trust – CR Trust Xing Common shares 184,842,883 184,842,883 Sheng No. 5 Collective Fund Trust in RMB Plan Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Common shares 184,842,883 184,842,883 Feng Fund Feng Qing No. 229 in RMB Asset Management Plan China Life AMP Fund– ICBC – China Life AMP – Hua Xin Trust Common shares 184,842,883 184,842,883 Targeted Additional Shares Issuance in RMB No. 10 Asset Management Plan Common shares Fang Lei 14,126,600 14,126,600 in RMB Agricultural bank of China - China Common shares Securities 500 Trading Open Index 11,565,511 11,565,511 in RMB Securities Investment Fund Common shares Fang Huaiyue 9,205,501 9,205,501 in RMB Common shares Zhang Peng 8,287,900 8,287,900 in RMB VANGUARD EMERGING Foreign shares 8,157,311 8,157,311 MARKETS STOCK INDEX placed in 6 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 FUND domestic exchange Related-parties or acting-in-concert It is unknown to the Company whether there is any related connection or action- parties among the above-mentioned in-concert parties among the top 10 un-restricted shareholders. shareholders Benxi Steel & Iron (Group) Co., Ltd. holds 2,160,831,394 shares of the company through an ordinary securities account, and holds 239,000,000 shares through the investor's credit securities account, therefore, it holds a total of 2,399,831,394 Shareholders among the top 10 shares. participating in securities margin Fang Lei holds 14,126,600 shares through the investor's credit securities account. trading (if any) Fang Huaiyue holds 9,205,501 shares through the investor's credit securities account. Zhang Peng holds 8,287,900 shares through the investor's credit securities account. Whether top ten common shareholders or top ten common shareholders with unrestricted shares carried out any buy-back agreement dealing in the reporting period. □ Yes √ No Top ten common shareholders or top ten common shareholders with unrestricted shares did not carry out buy-back agreement dealing in the reporting period. 2. Number of total preferred shareholders and preferred shares hold by Top 10 preferred shareholders □ Applicable √ Not applicable 7 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 III Important Events Ⅰ. Major Changes in Financial Data and Financial Index and Reasons √ Applicable □ Not applicable Significant changes and reasons in major accounting data, financial indicators which changed over 30% compared to the consolidated financial statement at the end of 2018 Increase / 1. Statement of Financial Position Reasons Decrease 51% Due to the increase in unpaid bonuses in the current Employee benefits payables period. -91% Due to the decrease of VAT payable at the end of this Tax payable period Non-current liabilities due within 467% Due to the long-term borrowings reclassified into one year borrowings due within one year. 3491% Due to the increase in the unused amount of the safety Special reserves production cost in this period. Significant changes and reasons in major accounting data, financial indicators which changed over 30% compared to the consolidated financial statement of the first quarter of 2019 2. Statement of comprehensive Increase / Reasons income Decrease 201% Due to the increase of Research and development Research and development expenses expenses Financial expenses 215% Due to the increase of net exchange losses -91% Due to the decrease of gains from scrapping of non- Non-operating income current assets Income tax expenses -92% Due to the decrease of deferred income tax expenses Increase / 3. Statement of cash flows Reasons Decrease Tax rebate received -90% Due to the decrease of tax refund in the period. 65% Due to the increase of cash paid for goods and services Cash paid for goods and services during the period Cash received from borrowings -42% Due to the decrease of cash received from the loan 8 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 II. Progress and influence of significant events, as well as the analysis and explanation on solutions □ Applicable √ Not applicable Progress in the implementation of share repurchase □ Applicable √ Not applicable Progress in the implementation of the reduction of shareholding shares by means of centralized 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 There is no under-fulfillment commitment by the end of the period made by actual controller, acquirer, director, supervisor, senior management personnel and other related parties. IV. Investment in Securities □ Applicable √ Not applicable There is no securities investments in the reporting period. V. Entrusted Financing □ Applicable √ Not applicable There is no entrusted financing 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. 9 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 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. 10 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Ⅳ Financial Statement Ⅰ. Financial Statement 1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Prepared by: Bengang Steel Plates Co., Ltd. 31 March 2020 Unit: RMB Item 20200331 20191231 Current asset Cash at bank and on hand 18,611,052,503.58 18,415,844,397.77 Settlement provisions Capital lent Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable 232,614,258.60 235,696,265.66 Accounts receivable financing 2,473,220,274.48 2,429,542,461.88 Prepayments 1,392,687,864.84 1,291,047,458.11 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Other receivables 155,248,729.02 172,807,036.77 Including:Interest receivable 28,512,792.47 20,504,422.47 Dividend receivable Redemptory financial assets for sale Inventories 9,439,699,017.97 7,700,397,685.61 Contract assets Assets held for sale Non-current assets due within one year Other current assets 400,600,544.18 312,904,824.09 Total current assets 32,705,123,192.67 30,558,240,129.89 Non-current assets 11 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Loan and advances issued Other debt investments Long-term receivables Long-term equity investments 2,642,998.70 2,642,998.70 Other equity investments 1,041,824,829.00 1,041,824,829.00 Other non-current financial assets Investment property Fixed assets 25,542,660,272.96 26,123,375,492.40 Construction in progress 2,025,822,529.81 1,833,853,572.58 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 269,858,180.64 271,500,023.34 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 196,287,482.97 191,485,595.49 Other non-current assets 635,680,384.06 708,502,552.50 Total non-current assets 29,714,776,678.14 30,173,185,064.01 Total assets 62,419,899,870.81 60,731,425,193.90 Current Liabilities Short-term loans 12,488,319,016.67 13,151,478,000.00 Loan from central bank Loan from other financial institutions Financial liability held for trading Derivative financial liabilities Notes payable 13,201,833,849.84 11,828,514,676.95 Accounts payable 5,720,913,243.49 4,527,513,030.27 Advance from customers 4,429,821,526.79 Contract liabilities 4,260,272,248.28 Financial assets sold for repurchase Absorbed deposit and interbank deposit Receiving from vicariously traded securities 12 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Receiving from vicariously sold securities Employee benefits payable 35,811,406.53 23,698,174.56 Current tax liabilities 26,385,011.76 284,825,814.80 Other payables 609,103,222.84 662,701,744.97 Including:Interest payable 3,697,500.00 10,818,986.30 Dividend payable Handling charges and commission payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one year 1,328,998,543.11 234,474,657.99 Other current liabilities Total current liabilities 37,671,636,542.52 35,143,027,626.33 Non-current liabilities Standard insurance contract provision Long-term loans 3,723,490,441.11 4,849,675,910.73 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 634,349,715.78 516,939,408.14 Long-term employee benefits payable Estimated liabilities Deferred income 191,042,271.50 208,955,407.30 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 4,548,882,428.39 5,575,570,726.17 Total liabilities 42,220,518,970.91 40,718,598,352.50 Shareholders’ equity Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments Including: Preferred stock Perpetual bond Capital reserve 12,343,209,847.29 12,343,209,847.29 13 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Less: treasury shares Other comprehensive income Special reserves 7,637,517.84 212,687.41 Surplus reserves 961,105,529.85 961,105,529.85 General risk reserve Undistributed profits 2,485,764,239.98 2,307,765,664.62 Total equity attributable to equity holders 19,673,088,666.96 19,487,665,261.17 of the parent company Non-controlling interests 526,292,232.94 525,161,580.23 Total shareholder's equity 20,199,380,899.90 20,012,826,841.40 Total of liabilities and owners’ equity 62,419,899,870.81 60,731,425,193.90 Legal Representative: Gao Lie Chief Financial Officer: Shen Qiang Chief Accountant: Zhao Zhonghua 2. STATEMENT OF FINANCIAL POSITION Unit: RMB Items 20200331 20191231 Current asset Cash at bank and on hand 17,249,452,518.01 16,982,227,928.89 Financial assets held for trading Derivative financial assets Notes receivable Account receivable 373,512,311.34 388,997,108.46 Accounts receivable financing 2,412,082,647.33 2,193,319,842.60 Prepayments 1,292,687,864.84 1,184,632,345.13 Other receivables 224,486,192.61 266,663,235.81 Including: Interest receivables 27,736,734.91 19,658,230.77 Dividend receivables Inventories 7,289,530,576.82 6,114,582,832.33 Contract assets Assets held for sale Non-current assets due within one year Other current assets 326,793,046.13 191,249,460.42 Total current assets 29,168,545,157.08 27,321,672,753.64 14 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Non-current assets Debt investment Other debt investments Long-term receivables Long-term equity investments 2,016,281,902.16 2,016,281,902.16 Other equity investments 1,041,624,829.00 1,041,624,829.00 Other non-current financial assets Investment properties Fixed assets 23,915,103,997.64 24,447,763,305.12 Construction in progress 2,012,088,328.09 1,813,889,136.42 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 144,643,506.36 145,470,040.68 Development expenditure Goodwill Long-term deferred expense Deferred tax assets 98,357,164.02 93,555,276.54 Other non-current assets 627,075,877.48 696,351,867.38 Total non-current assets 29,855,175,604.75 30,254,936,357.30 Total assets 59,023,720,761.83 57,576,609,110.94 Current liabilities Short-term loans 11,188,319,016.67 11,851,478,000.00 Financial liability held for trading Derivative financial liabilities Notes payable 11,538,620,936.62 10,225,969,445.22 Account payable 6,045,084,178.94 4,909,389,629.86 Advance from customers 5,597,707,687.22 Contract liability 5,263,303,246.87 Employee benefits payable 34,670,302.86 21,872,906.71 Current tax liabilities 13,096,514.24 274,181,048.14 Other payables 395,023,906.30 384,125,032.59 Including:Interest payables 3,697,500.00 10,818,986.30 Dividend payables 15 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Liabilities held for sale Non-current liabilities due within one 1,328,998,543.11 234,474,657.99 year Other current liabilities Total current liability 35,807,116,645.61 33,499,198,407.73 Non-current liability Long term loans 3,723,490,441.11 4,849,675,910.73 Bonds payable Including: Preferred stock Perpetual bond Lease liabilities Long-term payables 634,349,715.78 516,939,408.14 Long-term employee benefits payables Estimated liabilities Deferred income 191,042,271.50 208,955,407.30 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 4,548,882,428.39 5,575,570,726.17 Total liabilities 40,355,999,074.00 39,074,769,133.90 Shareholder’s 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 Less: Treasury shares Other comprehensive income Special reserves 6,224,392.44 53,330.99 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed Profits 1,901,962,068.37 1,742,251,419.03 Total shareholder's equity 18,667,721,687.83 18,501,839,977.04 Total liabilities and shareholder’s 59,023,720,761.83 57,576,609,110.94 equity 16 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unit: RMB Item Jan.-Mar. 2020 Jan.-Mar. 2019 1. Total operating income 11,728,574,704.88 11,761,190,575.63 Including: Operating income 11,728,574,704.88 11,761,190,575.63 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 11,541,446,733.82 11,490,405,098.16 Including: Operating cost 10,759,718,222.36 11,082,217,546.55 Interest expense Expenditure for handling charges and commission Surrender value Net expenditure for compensation Net provision for insurance contract appropriated Bonus payment for policy Reinsurance premium Tax and surcharges 51,561,831.30 54,057,558.75 Selling and distribution expenses 315,712,277.98 312,825,124.15 General and administrative 185,915,642.34 229,520,730.11 expenses Research and development 8,416,671.23 2,797,993.86 expenses Financial expenses 220,122,088.61 -191,013,855.26 Including: Interest expense 246,021,732.55 293,019,846.37 Interest income 72,914,133.66 67,726,988.83 Add: Other income 18,439,817.04 20,821,500.00 Income on investment(“-” for loss) Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortized cost 17 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Exchange gains Net exposure hedging income (“-” for loss) Gains from the change of fair value (“-” for loss) Credit impairment losses 1,189,945.37 (“-” for loss Asset impairment losses -20,397,495.27 (losses are listed with "-") Assets disposal gains(“-” 2,097,867.55 for loss) 3. Operational profit(“-” for loss) 186,360,238.20 293,704,845.02 Add: Non-operating income 282,400.25 3,075,607.08 Less: Non-operating expenses 6,256,330.10 7,215,029.01 4. Total profit (“-” for loss) 180,386,308.35 289,565,423.09 Less: Income tax expenses 1,460,096.83 18,343,089.25 5. Net profit(“-” for loss) 178,926,211.52 271,222,333.84 1.Classification by continuing operating (1) Net profit from continuing 178,926,211.52 271,222,333.84 operation (2) Net profit from discontinued operation 2.Classification by ownership (1) Net profit attributable to the 177,998,575.36 271,606,318.07 owners of parent company (2) Net profit attributable to non- 927,636.16 -383,984.23 controlling shareholders 6. Other comprehensive income Other comprehensive income attributable to owners of the 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 investee cannot be 18 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 reclassified into profit or loss (3) Changes in the fair value of other equity investments (4) Changes in the fair value of Corporate credit risk (5) Others 2.Other comprehensive income that will be reclassified into profit or loss (1) Share of other comprehensive income of investee to be classified into profit or loss afterwards under equity method (2) Changes in the fair value of other debt investments (3) Changes in the fair value of financial assets at fair value through other comprehensive income (4) Provision for credit loss of other debt investments (5) Cash flow hedge reserve (6) Translation differences in foreign currency financial statements (7) Others Other comprehensive income attributable to non-controlling shareholders after tax 7. Total comprehensive income 178,926,211.52 271,222,333.84 Total comprehensive income attributable to the owner of the parent 177,998,575.36 271,606,318.07 company Total comprehensive income 927,636.16 -383,984.23 attributable to non-controlling shareholders 8. Earnings per share 1) Basic earnings per share 0.05 0.07 2) Diluted earnings per share 0.05 0.07 The current business combination under common control, the net profits of the combined party before achieved: 0.00Yuan, net profit of previous period of the combined party realized: 0.00Yuan. Legal Representative: Gao Lie Chief Financial Officer: Shen Qiang Chief Accountant: Zhao Zhonghua 19 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 4. STATEMENT OF COMPREHENSIVE INCOME Unit: RMB Item Jan.-Mar. 2020 Jan.-Mar. 2019 1. Total operating income 12,263,353,879.66 11,318,044,807.71 Less: Operating cost 11,478,300,497.98 10,828,824,566.71 Tax and surcharges 44,905,595.40 40,172,247.54 Selling and distribution expenses 186,148,487.15 178,902,194.54 General and administrative expenses 171,553,819.80 215,696,958.84 Research and development expenses 8,416,671.23 2,797,993.86 Financial expenses 212,078,788.48 -204,007,003.82 Including: Interest expense 231,068,313.59 278,494,138.86 Interest income 65,935,368.22 66,189,925.11 Add: Other income 18,009,908.60 20,821,500.00 Income on investment(“-” for loss) Including: Income from associates and joint ventures Income from derecognition of financial assets measured at amortized cost Net exposure hedging income (“-” for loss) Gains from change of fair value (“-” for loss) Credit impairment loss 1,189,945.37 (“-” for loss) Asset impairment loss -20,397,495.27 (“-” for loss) Assets disposal gains(“-” 2,144,869.80 for loss) 2. Operational profit(“-” for loss) 160,752,378.32 278,624,219.84 Add: Non-operating income 225,882.20 3,021,409.27 Less: Non-operating expenses 6,069,498.66 7,215,029.01 3. Total profit (“-” for loss) 154,908,761.86 274,430,600.10 Less: Income tax expenses -4,801,887.48 14,240,768.41 4. Net profit(“-” for loss) 159,710,649.34 260,189,831.69 1.Net profit from continuing operation 159,710,649.34 260,189,831.69 20 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 2.Net profit from discontinued operation 5.Other comprehensive income 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 investee cannot be reclassified into profit or loss (3) Changes in the fair value of other equity investments (4) Changes in the fair value of Corporate credit risk (5) Others 2.Other comprehensive income that will be reclassified into profit or loss. (1) Share of other comprehensive income of investee to be classified into profit or loss afterwards under equity method (2) Changes in the fair value of other debt investments (3) Changes in the fair value of financial assets at fair value through other comprehensive income (4) Provision for credit loss of other debt investments (5) Cash flow hedge reserve (6) Translation differences in foreign currency financial statements (7) Others 6. Total comprehensive income 159,710,649.34 260,189,831.69 7. Earnings per share 1)Basic earnings per share 2)Diluted earnings per share 5. CONSOLIDATED STATEMENT OF CASH FLOWS Unit: RMB 21 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Item Jan.-Mar. 2020 Jan.-Mar. 2019 1.Cash flow from operating activities Cash received from sale of goods or 7,864,260,416.76 7,419,619,557.25 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 Cash from receiving interest, handling charge and commission Net increase of loans from Borrowing funds Net increase of fund for buy-back business Net increase of receivings from vicariously traded securities Tax rebate received 12,824,913.18 129,603,306.84 Other cash received relating to operating 50,831,445.98 52,630,739.69 activities Subtotal of cash inflows from operating 7,927,916,775.92 7,601,853,603.78 activities Cash paid for goods and services 6,282,057,238.94 3,796,837,688.74 Net increase of customer's loan and advances Net increase of deposit in central bank and interbank deposit Cash payment for original insurance contract compensation Net increase of capital lent Cash for payment of interest, handling charge and commission Cash for payment of policy bonus Cash paid to and on behalf of employees 481,908,334.86 466,895,154.36 22 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Cash paid for all types of taxes 458,533,701.03 564,138,089.50 Other cash paid relating to operating 20,570,880.87 21,425,475.71 activities Subtotal of cash outflows from operating 7,243,070,155.70 4,849,296,408.31 activities Net cash flows from operating activities 684,846,620.22 2,752,557,195.47 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 long-term assets Net cash received from disposal of subsidiary and other operating units Other cash paid relating to investing activities Subtotal of cash inflows from investing activities Cash paid for acquisition of fixed assets, 224,332,091.19 213,446,363.20 intangible assets and other long-term 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 224,332,091.19 213,446,363.20 activities Net cash flows from investing activities -224,332,091.19 -213,446,363.20 3. Cash flows from financing activities Proceeds from investment Including: Proceeds from investment of non-controlling shareholders of subsidiary Proceeds from borrowings 2,197,194,000.00 3,762,429,000.00 Other proceeds relating to financing activities 23 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Subtotal of cash inflows from financing 2,197,194,000.00 3,762,429,000.00 activities Cash repayments of borrowings 2,916,611,584.62 3,853,593,875.68 Cash payments for distribution of 263,567,150.15 293,019,846.37 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 3,180,178,734.77 4,146,613,722.05 activities Net cash flows from financing activities -982,984,734.77 -384,184,722.05 4. Effect of foreign exchange rate changes 37,441,237.39 -25,741,813.31 on cash and cash equivalents 5. Net increase in cash and cash -485,028,968.35 2,129,184,296.91 equivalents Add: Cash and cash equivalents at the 13,441,414,988.58 11,752,548,621.97 beginning of the period 6. Cash and cash equivalents at the 12,956,386,020.23 13,881,732,918.88 ending of the period 6. STATEMENT OF CASH FLOWS Unit: RMB Item Jan.-Mar. 2020 Jan.-Mar. 2019 1. Cash flow from operating activities Cash received from sale of goods or 7,801,529,586.28 7,083,398,928.22 rendering of services Tax rebate received 102,717,420.63 Other cash received relating to operating 39,105,003.15 40,251,068.14 activities Subtotal of cash inflows from operating 7,840,634,589.43 7,226,367,416.99 activities Cash paid for goods and services 6,197,815,675.01 3,505,322,597.12 Cash paid to and on behalf of employees 459,560,419.78 441,580,806.88 Cash paid for all types of taxes 434,526,418.13 540,256,412.01 Other cash paid relating to operating 16,129,733.15 18,206,333.60 24 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 activities Subtotal of cash outflows from operating 7,108,032,246.07 4,505,366,149.61 activities Net cash flows from operating activities 732,602,343.36 2,721,001,267.38 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 long-term assets Net cash received from disposal of subsidiary and other operating units Other cash received relating to investing activities Subtotal of cash inflows from investing activities Cash paid for acquisition of fixed assets, 218,474,831.02 211,879,503.05 intangible assets and other long-term assets Cash paid for acquisition of investments Net cash paid for acquisition of subsidiary and other operating unit Other cash paid relating to investing activities Subtotal of cash outflows paid for 218,474,831.02 211,879,503.05 investing activities Net cash flows from investing activities -218,474,831.02 -211,879,503.05 3. Cash flows from financing activities Proceeds from investment Cash received from borrowings 1,957,194,000.00 3,522,429,000.00 Other cash received relating to financing activities Subtotal of cash inflows from financing 1,957,194,000.00 3,522,429,000.00 activities Cash repayments of borrowings 2,676,611,584.62 3,599,373,875.68 Cash payments for distribution of 249,495,900.16 278,494,138.86 dividends, profit or interest 25 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Other cash payments relating to financing activities Subtotal of cash outflows from financing 2,926,107,484.78 3,877,868,014.54 activities Net cash flows from financing activities -968,913,484.78 -355,439,014.54 4. Effect of foreign exchange rate changes 33,421,536.16 -25,737,308.54 on cash and cash equivalents 5. Net increase in cash and cash -421,364,436.28 2,127,945,441.25 equivalents Add: Cash and cash equivalents at the 13,029,616,298.47 10,807,824,843.20 beginning of the period 6. Ending balance of cash and cash 12,608,251,862.19 12,935,770,284.45 equivalents Ⅱ. Adjustment of Financial Statement 1. Adjustment to the financial statement towards beginning balance due to the first-time implementation of new revenue standards and new leasing standards from 2020. √ Applicable □ Not applicable CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unit: RMB Item 31 December 2019 1 January 2020 Adjustment amount Current assets Cash at bank and on hand 18,415,844,397.77 18,415,844,397.77 Account receivable 235,696,265.66 235,696,265.66 Accounts receivable financing 2,429,542,461.88 2,429,542,461.88 Prepayments 1,291,047,458.11 1,291,047,458.11 Other receivable 172,807,036.77 172,807,036.77 Including: interest receivable 20,504,422.47 20,504,422.47 Inventories 7,700,397,685.61 7,700,397,685.61 Other current assets 312,904,824.09 312,904,824.09 Total current assets 30,558,240,129.89 30,558,240,129.89 Non-current assets Long-term equity investments 2,642,998.70 2,642,998.70 Other equity investments 1,041,824,829.00 1,041,824,829.00 26 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Fixed assets 26,123,375,492.40 26,123,375,492.40 Construction in progress 1,833,853,572.58 1,833,853,572.58 Intangible assets 271,500,023.34 271,500,023.34 Deferred tax assets 191,485,595.49 191,485,595.49 Other non-current assets 708,502,552.50 708,502,552.50 Total non-current assets 30,173,185,064.01 30,173,185,064.01 Total assets 60,731,425,193.90 60,731,425,193.90 Current Liabilities Short-term loans 13,151,478,000.00 13,151,478,000.00 Notes payable 11,828,514,676.95 11,828,514,676.95 Accounts payable 4,527,513,030.27 4,527,513,030.27 Advance from customers 4,429,821,526.79 -4,429,821,526.79 Contract liabilities 4,429,821,526.79 4,429,821,526.79 Employee benefits payable 23,698,174.56 23,698,174.56 Current tax liabilities 284,825,814.80 284,825,814.80 Other payables 662,701,744.97 662,701,744.97 Including: interest payable 10,818,986.30 10,818,986.30 Non-current liabilities due within 234,474,657.99 234,474,657.99 one year Total current liabilities 35,143,027,626.33 35,143,027,626.33 Non-current liabilities Long-term loans 4,849,675,910.73 4,849,675,910.73 Long-term payables 516,939,408.14 516,939,408.14 Deferred income 208,955,407.30 208,955,407.30 Total non-current liabilities 5,575,570,726.17 5,575,570,726.17 Total liabilities 40,718,598,352.50 40,718,598,352.50 Shareholders' equity: Share capital 3,875,371,532.00 3,875,371,532.00 Capital reserve 12,343,209,847.29 12,343,209,847.29 Special reserves 212,687.41 212,687.41 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed profits 2,307,765,664.62 2,307,765,664.62 Total equity attributable to equity 19,487,665,261.17 19,487,665,261.17 holders of the parent company Non-controlling interests 525,161,580.23 525,161,580.23 27 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Total shareholder's equity 20,012,826,841.40 20,012,826,841.40 Total of liabilities and owners’ 60,731,425,193.90 60,731,425,193.90 equity Illustration of adjustment STATEMENT OF FINANCIAL POSITION Unit: RMB Item 31 December 2019 1 January 2020 Adjustment amount Current assets Cash at bank and on hand 16,982,227,928.89 16,982,227,928.89 Account receivable 388,997,108.46 388,997,108.46 Accounts receivable financing 2,193,319,842.60 2,193,319,842.60 Prepayments 1,184,632,345.13 1,184,632,345.13 Other receivable 266,663,235.81 266,663,235.81 Including: interest receivable 19,658,230.77 19,658,230.77 Inventories 6,114,582,832.33 6,114,582,832.33 Other current assets 191,249,460.42 191,249,460.42 Total current assets 27,321,672,753.64 27,321,672,753.64 Non-current assets Long-term equity investments 2,016,281,902.16 2,016,281,902.16 Other equity investments 1,041,824,829.00 1,041,824,829.00 Fixed assets 24,447,763,305.12 24,447,763,305.12 Construction in progress 1,813,889,136.42 1,813,889,136.42 Intangible assets 145,470,040.68 145,470,040.68 Deferred tax assets 93,555,276.54 93,555,276.54 Other non-current assets 696,351,867.38 696,351,867.38 Total non-current assets 30,254,936,357.30 30,254,936,357.30 Total assets 57,576,609,110.94 57,576,609,110.94 Current liabilities Short-term loans 11,851,478,000.00 11,851,478,000.00 Notes payable 10,225,969,445.22 10,225,969,445.22 Accounts payable 4,909,389,629.86 4,909,389,629.86 Advance from customers 5,597,707,687.22 -5,597,707,687.22 Contract Liabilities 5,597,707,687.22 5,597,707,687.22 Employee benefits payable 21,872,906.71 21,872,906.71 28 Bengang Steel Plates Co., Ltd. First Quarter Report 2020 Current tax liabilities 274,181,048.14 274,181,048.14 Other payables 384,125,032.59 384,125,032.59 Including: interest payable 10,818,986.30 10,818,986.30 Non-current liabilities due within 234,474,657.99 234,474,657.99 one year Total current liabilities 33,499,198,407.73 33,499,198,407.73 Non-current liabilities Long term loans 4,849,675,910.73 4,849,675,910.73 Long-term payables 516,939,408.14 516,939,408.14 Deferred income 208,955,407.30 208,955,407.30 Total non-current liabilities 5,575,570,726.17 5,575,570,726.17 Total liabilities 39,074,769,133.90 39,074,769,133.90 Shareholder’s equity: Share capital 3,875,371,532.00 3,875,371,532.00 Capital reserves 11,923,058,165.17 11,923,058,165.17 Special reserves 53,330.99 53,330.99 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed Profits 1,742,251,419.03 1,742,251,419.03 Total shareholder's equity 18,501,839,977.04 18,501,839,977.04 Total liabilities and 57,576,609,110.94 57,576,609,110.94 shareholder’s equity Illustration of adjustment 2. Illustration of the first implementation of the new financial instrument standards, the new lease criteria, retrospective adjustment towards the previous data from 2020. □ Applicable √ Not applicable Ⅲ. Audit report Whether the first quarter report is audited □ Yes √ No The first quarter report is not audited. 29