Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Bengang Steel Plates Co., Ltd.
Third Quarter Report 2020
October 2020
1
Bengang Steel Plates Co., Ltd. Third 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.
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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） 65,200,664,816.84 60,731,425,193.90 7.36%
Net assets attributable to
shareholders of the listed company 20,945,268,782.71 19,487,665,261.17 7.48%
（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） 12,667,300,144.93 -12.29% 34,851,837,404.98 -9.58%
Net profit attributable to the
shareholders of the listed company 28,865,084.77 -15.67% 283,509,289.10 -41.84%
（RMB）
Net profit after deducting of non-
recurring gain/loss attributable to
4,967,865.93 -81.11% 244,853,338.47 -48.94%
the shareholders of listed company
（RMB）
Net Cash flow generated by
-- -- -1,407,629,344.42 -117.11%
business operation（RMB）
Basic earnings per
0.01 0.00% 0.07 -46.15%
share(RMB/Share)
Diluted earnings per
0.01 0.00% 0.07 -46.15%
share(RMB/Share)
Weighted average net assets yield 0.14% -0.04% 1.37% -1.16%
Items and amount of non-recurring profit and loss
√ Applicable □ Not applicable
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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 -19,551,512.21
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
57,452,382.09
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 32,800.02
Other non-operating revenue and expenditure other than
988,008.32
above items
Less: Impact of income tax 255,202.08
Impact of minority interests (after tax) 10,525.51
Total 38,655,950.63 --
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 50,963 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
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
shareholder shareholder shares held shares restricted shares
State of share Quantity
held
State- Pledged 712,545,000
Benxi Steel & Iron
owned legal 62.18% 2,409,628,094
(Group) Co., Ltd. Frozen 102,100,000
person
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
Liaoning
Provincial State-
Transportation owned legal 3.92% 151,806,883
Investment Group person
Co., Ltd.
Domestic
Fang Lei natural 0.36% 14,126,600
person
Shanghai Yi Cun
Investment
Management Co., Others 0.31% 12,000,000
Ltd. – Yi Cun
Sheng Hui No. 3
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Private Securities
Investment Fund
Domestic
Fang Huaiyue natural 0.24% 9,205,501
person
Shanghai Ying
Shui Investment
Management Co.,
Ltd. – Ying Shui Others 0.24% 9,175,030
Fu Lin No. 10
Private Securities
Investment Fund
Vanguard
Investment
Australia Ltd. – Overseas
0.22% 8,384,044
Vanguard legal person
Emerging Markets
Stock Index Fund
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
2,409,628,094 2,409,628,094
Ltd. RMB
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
Liaoning Provincial
Common shares in
Transportation Investment 151,806,883 151,806,883
RMB
Group Co., Ltd.
Common shares in
Fang Lei 14,126,600 14,126,600
RMB
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Shanghai Yi Cun Investment
Management Co., Ltd. – Yi Cun Common shares in
12,000,000 12,000,000
Sheng Hui No. 3 Private RMB
Securities Investment Fund
Common shares in
Fang Huaiyue 9,205,501 9,205,501
RMB
Shanghai Ying Shui Investment
Management Co., Ltd. – Ying Common shares in
9,175,030 9,175,030
Shui Fu Lin No. 10 Private RMB
Securities Investment Fund
Vanguard Investment Australia
Common shares in
Ltd. - Vanguard Emerging 8,384,044 8,384,044
RMB
Markets Stock Index Fund
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 2,170,628,094 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 2,409,628,094 shares. Fang Lei holds 14,126,600 shares of
the company through an investor's credit securities account. Shanghai Yi Cun Investment
Shareholders among the top 10
Management Co., Ltd. – Yi Cun Sheng Hui No. 3 Private Securities Investment Fund holds
participating in securities
12,000,000 shares of the company through an investor's credit securities account. Fang Huaiyue
margin trading (if any)
holds 9,205,501 shares of the company through an investor's credit securities account. Shanghai
Ying Shui Investment Management Co., Ltd. – Ying Shui Fu Lin No. 10 Private Securities
Investment Fund holds 9,175,030 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
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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 accounts receivable
Accounts receivable financing 113%
received during the current period
Due to the increase of construction in
progress that did not meet the conditions of
Construction in progress 74%
transferring to fixed assets at the end of the
period
Due to the increase of lease guarantee paid
Other non-current assets 61%
during the current period
Due to the increase of employee benefits
Employee benefits payables 174%
payables during the current period
Due to the decrease of VAT payable at the
Tax payables -94%
end of this period
Due to the increase of interest accrued
Interest payables 146%
during the current period
Due to the increase of non-current liabilities
Non-current liabilities due within
350% due within one year during the current
one year
period
Due to the increase of lease payment during
Long-term payables 169%
the current period
Due to the increase of unpaid safety
Special reserves 13073%
production fee during the current period
Items and reasons for the changes of more than 30% compared to January to September 2019 in the
consolidated financial statements
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Increase /
2. Statement of comprehensive income Reasons
Decrease
Due to the increase of exchange loss during
Financial expenses -35%
the current period
Due to the decrease in assets sold during the
Assets disposal gains -87%
current period
Due to the decrease of other non-operating
Non-operating income -82%
income
Due to the decrease of losses arose from
Non-operating expenses -68%
fixed assets scrapping
Increase /
3. Statement of cash flows Reasons
Decrease
Due to the increase of cash paid for goods and
Cash paid for goods and services 52%
services during the current period
Cash paid for acquisition of fixed Due to the decrease of payment of acquisition
assets, intangible assets and other -65% of fixed assets, intangible assets during the
long-term assets current period
Due to the increase of cash on repayment of
Cash repayments of borrowings 67%
borrowings
Due to the increase of cash paid for goods and
Cash and cash equivalents at the services, and payment of acquisition of fixed
-86%
ending of the period assets, intangible assets during the current
period
II. Progress and influence of significant events, as well as the analysis and
explanation on solutions
√ Applicable □ Not applicable
1. Public offering and listing of A-share convertible corporate bonds
(1) Issue of convertible corporate bonds. Approved by the China Securities Regulatory Commission on
Approval of the Public Issuance of A-Share Convertible Corporate Bonds by Bengang Steel Plate Co.,
Ltd. (Zheng Jian Permit [2020] No. 46), the company was approved to publicly issue a total face value
of 6.8 billion convertible bonds to the public with a maturity of 6 years. The company actually issued 68
million convertible corporate bonds to the public, each with a face value of 100 yuan, and the total raised
funds were 6.8 billion yuan. After deducting underwriting and sponsorship fees, issuance registration
fees and other expenses, a total of 41,084,701.18 yuan (excluding tax) was raised. The net amount of
funds is RMB 6,758,915,298.82. The above funds have been transferred to the company's fund-raising
account on July 6, 2020. BDO Shu Lun Pan Certified Public Accountants LLP verified the receipt of the
funds raised above and issued Xin Kuai Shi Bao Zi [2020] No. ZB11494 "Capital Verification Report".
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
(2) Public offering of convertible corporate bonds. On August 4, 2020, the company’s A-share
convertible corporate bonds were listed on the Shenzhen Stock Exchange, the abbreviation of the bond:
Bengang Convertible Bonds, bond code: 127018, bond listings: 6.800 billion yuan (68 million). The
beginning and ending date of existence: June 29, 2020 to June 28, 2026, the beginning and ending date
of the conversion of convertible bonds: January 4, 2021 to June 28, 2026.
Interim report disclosure
Overview of important matters Date of disclosure
website query index
Public issuance of A-share convertible
corporate bonds. The total issuance is
www.cninfo.com.cn
RMB 6.8 billion, each with a face value June 23, 2020
Announcement No.: 2020-037
of RMB 100, a total of 68 million, with
a term of 6 years.
The company used RMB
366,180,860.17 to replace self-raised
www.cninfo.com.cn
funds that were invested in investment July 14, 2020
Announcement No.: 2020-047
projects with raised funds in advance
and paid for issuance.
The company uses a quota of no more
than RMB 4 billion (including)
www.cninfo.com.cn
temporarily idle raised funds for cash July 14, 2020
Announcement No.: 2020-048
management, and the period is no more
than 12 months.
The company used idle raised funds of
4,846 million yuan to temporarily
supplement working capital, of which
666 million yuan was raised from non-
public issuance of stocks, and 4,180 www.cninfo.com.cn
July 29, 2020
million yuan was raised from public Announcement No.: 2020-052
issuance of convertible bonds. The use
period shall not exceed 12 months from
the date of approval by the board of
directors.
The company’s A-share convertible
corporate bonds were listed on the
Shenzhen Stock Exchange on August
4, 2020. The abbreviation of the bond: www.cninfo.com.cn
August 3, 2020
Bengang Convertible Bond, the bond Announcement No.: 2020-053
code: 127018, and the number of
bonds listed: 6.8 billion yuan (68
million pieces)
Progress in the implementation of share repurchase
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
□ 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
Commitments Contents Performance
party commitment time period
Commitment of shares
reform
Commitment made in the
acquisition report or the
equity change report
Commitment made during
asset restructuring
According to the
relevant regulations of
the China Securities
Regulatory Commission,
all directors and senior
management of the
Company have made the
following commitments
to the Company’s
fulfillment of the diluted
Company immediate return
Commitment made during
directors, Other measures: 1. I promise to Under normal
initial public offering or May 22, 2019 Long term
senior commitment perform my duties fulfillment
refinancing
management faithfully and diligently,
and safeguard the
legitimate rights and
interests of the Company
and all shareholders . 2. I
promise not to deliver
benefits to other units or
individuals without
compensation or under
unfair conditions, nor to
use other means to
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
damage the Company's
interests. 3. I promise to
restrict the position-
related consumption
behavior of company
directors and senior
management personnel.
4. I promise not to use
the Company’s assets to
do investment and
consumption activities
that are not related to the
performance of my
duties. 5. Within the
scope of my
responsibilities and
authority, I promise to
make every effort to
promote the company's
board of directors or the
remuneration system
established by the
remuneration and
appraisal committee to
be linked to the
implementation of the
company's
compensation measures,
and vote in favor of the
relevant proposals
reviewed by the
company's board of
directors and general
meeting (If I have voting
rights). 6. If the company
intends to implement
equity incentives, I
promise to, within my
own responsibilities and
jurisdiction, make every
effort to promote the
Company’s proposed
equity incentive exercise
conditions to be linked to
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
the Company’s
implementation of the
return measures, and to
review the Company’s
board of directors and
shareholders’ general
meetings and vote in
favor of the relevant
proposals reviewed by
the company's board of
directors and general
meeting (If I have voting
rights). 7. If the future
issuance of this
commitment and the
implementation of the
Company’s public
issuance of convertible
corporate bonds are
completed, if the China
Securities Regulatory
Commission makes
other new regulatory
provisions on the
measures for filling
returns and their
commitments, and the
above commitments
cannot meet the
requirements of the
China Securities
Regulatory Commission
When other regulations
are stipulated, a
commitment will be
issued in accordance
with the latest
regulations of the China
Securities Regulatory
Commission. The
company's controlling
shareholder, Benxi Iron
and Steel (Group) Co.,
Ltd., promised not to
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
interfere with the
company's operation and
management activities
beyond its authority and
not to infringe on the
Company's interests.
The sales companies of
Bengang International
Trade Co.,Ltd. and
Bengang Steel plates in
the same region
guarantee independent
personnel, independent
business, independent
finance, and independent
assets, and are
guaranteed not to be in
the same registration
place or in the same
office; The filing of
foreign economic and
trade operators, taking
Benxi Steel & into account the need to
Iron (Group) gradually improve the
Co., Ltd. and Other qualification Under normal
July 24,2019 Long term
Bengang Commitment certification of raw fulfillment
Group Co., material suppliers,
Ltd. customs import and
export qualification
certification, etc. In the
short term, the actual
conditions and
capabilities for
independent import and
export business are still
lacking. In order to
ensure the normal
business development of
Benxi Steel Plate, the
Group agrees that within
the period of not more
than 5 years from the
date of issuance of this
commitment, the main
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
import and export
business of Benxi Steel
Plate will still be
represented by Bengang
International Trade until
Bengang Steel Plates can
be independently
developed Import and
export business, and
during this period,
Bengang International
Trade will provide the
necessary support for the
establishment and
improvement of
Bengang's import and
export business. In
addition, the sales
company under Bengang
International Trade is
only responsible for
selling the products of
Beiying Iron and Steel
Group, and never sells
third-party steel
products. 3. The three
sales companies under
the Group, Shanghai
Bengang Iron and Steel
Sales Co., Ltd., Shanghai
Bengang Iron and Steel
Materials Co., Ltd., and
Guangzhou Free Trade
Zone Bengang Sales Co.,
Ltd., are currently no
longer actually engaged
in any business
activities, as follows: (1 )
Shanghai Bengang Iron
& Steel Sales Co., Ltd.
filed for bankruptcy in
2014, and the Shanghai
Changning District
People's Court issued an
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
announcement to
appoint Guohao Lawyer
(Shanghai) Office as the
bankruptcy
administrator. After
communication with the
bankruptcy
administrator, it is
expected that the
bankruptcy and
liquidation of Shanghai
Bengang Iron and Steel
Sales Co., Ltd. will be
completed by the end of
2020. Upon completion
of the aforementioned
bankruptcy liquidation
procedures, the relevant
procedures for
cancellation of Shanghai
Bengang Iron and Steel
Sales Co., Ltd. will be
handled immediately. (2)
Shanghai Bengang Iron
& Steel Materials Co.,
Ltd. is a holding
subsidiary of Shanghai
Bengang Iron & Steel
Sales Co., Ltd., and its
business license has been
revoked. As the
shareholder Shanghai
Bengang Iron & Steel
Sales Co., Ltd. is in the
process of bankruptcy
and liquidation,
Shanghai Bengang Iron
& Steel Materials Co.,
Ltd. was unable to
convene a shareholders'
meeting to cancel the
company and establish a
liquidation group
according to law.
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Therefore, the
cancellation has not yet
been completed. After
the aforementioned
bankruptcy and
liquidation procedures of
Shanghai Bengang Iron
& Steel Sales Co., Ltd.
are completed, the
relevant procedures for
cancellation of Shanghai
Bengang Iron & Steel
Materials Co., Ltd. will
be processed
immediately. (3)
Guangzhou Free Trade
Zone Bengang Sales Co.,
Ltd. has a contract
arrears dispute with
Jiedong County Trading
Corporation. According
to the Civil Judgment
((1999) Ben Jing No.
116), Guangzhou Free
Trade Zone Bengang
Sales Co., Ltd. applied to
the court to seal 62
properties under the
name of Jiedong County
Trading Corporation.
However, due to serious
local protection,
property rights and other
factors, the content of the
judgment has not been
enforceable. Later, after
applying again from
Guangzhou Free Trade
Zone Bengang Sales Co.,
Ltd., the Intermediate
People's Court of Benxi
City, Liaoning Province
issued an execution
ruling again, and 62
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Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
properties of Jiedong
County Trading
Corporation were re-
sealed. As of February 4,
2022. Except for
participating in the
litigation activities for
the purpose of realizing
creditor's rights,
Guangzhou Free Trade
Zone Bengang Sales Co.,
Ltd has not carried out
other business activities.
After the litigation is
completed, the relevant
procedures for the
cancellation of
Guangzhou Free Trade
Zone Bengang Sales Co.,
Ltd. will be handled
immediately.
The Group's horizontal
competition with Benxi
Steel Plates and the
The company
measures and
has completed
commitments to avoid
the acquisition
inter-industry
of the
competition 1. During
2300mm hot
the period when the
rolling mill
Group is the controlling
production
shareholder of Bengang
line, and the
Benxi Steel & Steel Plates, in addition
Other industry
Iron (Group) to the matters listed in July 24,2019 Long term
Commitment competition
Co., Ltd. Article 1 of this
problem has
Commitment Letter, the
been
Group and other
completely
enterprises controlled by
resolved.
the Group other than
Other
Bengang Steel Plates no
commitments
longer produce or
continue to be
develop any products
fulfilled
that compete or may
compete with the
products produced by
18
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Bengang Steel Plates and
its subsidiaries at home
and abroad, and do not
directly or indirectly
operate any business that
competes with Bengang
Steel Plates and its
subsidiaries. Businesses
that may constitute
competition, nor are they
involved in investing in
any other enterprise that
competes with or may
compete with products
or businesses produced
by Bengang Steel Plates
and its subsidiaries. 2. If
Bengang Steel Plates and
its subsidiaries further
expand their business
scope, the Group and
other enterprises
controlled by the Group
will not compete with the
expanded business of
Bengang Steel Plates and
its subsidiaries; they may
compete with Bengang
Steel Plates and its
subsidiaries If the
company's expanded
business produces
competition, it will
withdraw from the
competition with
Bengang Steel Plates as
follows: (1) Stop
business that may or may
compete with Bengang
Steel Plates and its
subsidiaries; (2) Will
compete The business is
incorporated into
Bengang Steel Plates and
19
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
its subsidiaries in a legal
and compliant manner;
(3) Competitive business
is transferred to
unrelated third parties. 3.
If the Group has any
business opportunities to
engage in or participate
in the competition with
Bengang Steel Plates’
operations, the Group
shall immediately notify
Bengang Steel Plates of
the above commercial
opportunities. Within a
reasonable period
specified in the notice,
Bengang Steel Plates If
an affirmative answer is
made to take advantage
of the business
opportunity, the Group
will endeavor to give the
business opportunity to
Bengang Steel Plates on
terms not less than that
provided to any
independent third party.
4. If the above
commitments are
violated, the Group is
willing to bear all the
responsibilities arising
therefrom, and fully
compensate or
compensate for all direct
or indirect losses caused
to Bengang Steel Plates.
5. This letter of
commitment continues
to be effective during the
period of the Group as
the controlling
shareholder of Bengang
20
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Steel Plates and cannot
be changed or withdrawn
In order to regulate and
reduce the Company ’s
transactions with
controlling shareholders
and other related parties,
and to protect the
interests of the Company
and small and medium
shareholders, Benxi Iron
and Steel (Group) Co.,
Ltd. and Bengang Group
Co., Ltd. have issued the
following commitments:
"Benxi Iron and Steel
(Group) Co., Ltd. and
Bengang Group Co.,
Ltd. (hereinafter
collectively referred to
Benxi Steel & as the "Group"), as a
Iron (Group) direct controlling
Co., Ltd. and Other shareholder and an Under normal
July 24,2019 Long term
Bengang Commitment indirect controlling fulfillment
Group Co., shareholder of Bengang
Ltd. Steel Plates Co., Ltd.
(hereinafter referred to
as "Bengang Steel
Plates"), in order to
protect the interests of
Bengang Steel Plates and
other shareholders of
Bengang Steel Plates,
regulate The Group's
related transaction with
Bengang Steel Plates
hereby promises: 1. The
Group will fully respect
the independent legal
person status of Bengang
Steel Plates, ensure the
independent operation
and independent
decision-making of
21
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Bengang Steel Plates,
ensure the independence
of Bengang Steel Plates’
business, asset integrity
and personnel
Independence and
financial independence
to avoid and reduce
unnecessary related
transactions; the Group
will strictly control
related transactions with
Bengang Steel Plates and
its subsidiaries. 2. The
Group and other
controlled companies
promise not to use loans
or occupy or
misappropriate the funds
of Bengang Steel Plates
and its subsidiaries to
repay debts, substitute
funds or otherwise, nor
We ask Bengang Steel
Plates and its
subsidiaries to provide
illegal guarantees for the
Group and other
companies under its
control. 3. The Group
and other controlled
companies and Bengang
Steel Plates will
minimize related
transactions. It is indeed
necessary and
unavoidable to carry out
in the related party
transactions, strictly
implement the decision-
making authority,
decision-making
procedures, avoidance
system and other
22
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
contents stipulated in
Bengang's "Articles of
Association" and related
party transaction
decision-making system,
give full play to the role
of the board of
supervisors and
independent directors,
and earnestly fulfill the
obligation of
information disclosure
To ensure that
transactions are
conducted in accordance
with the open, fair, and
fair principles of market
transactions and normal
commercial terms, the
Group and other
companies under control
will not require or accept
Bengang Steel Sheets to
give preferential
treatment to third parties
in any fair market
transaction Conditions to
protect other
shareholders of Benxi
Steel Plates and the
interests of Benxi Steel
Plates from damage. 4.
The Group guarantees
that the above
commitments are
continuously effective
and irrevocable as long
as Bengang Steel Plates
is listed on the domestic
stock exchange and the
Group acts as its direct
and indirect controlling
shareholder. If any
violation of the above
23
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
commitments occurs, the
Group therefore bear all
the losses caused to
Bengang Steel Plates.
Stock option incentive
commitment
Other commitments to the
company's minority
shareholders
Whether Commitment
Yes
fulfilled on time or not
IV. Financial Asset Investment
1. Investment in Securities
□ Applicable √ Not applicable
There are no securities investments in the reporting period.
2. Investment in Derivatives
□ Applicable √ Not applicable
There is no investment in derivatives in the reporting period.
V. Progress of Investment Projects with Raised Funds
√ Applicable □ Not applicable
1. Funds raised by non-public offering of shares
From the beginning of the year to the end of the reporting period, the company actually used RMB
93,860,100 to raise funds. As of September 30, 2020, the unused amount of the company's raised funds
was 685,287,300, of which the supplementary working capital balance was 660 million, and the raised
funds account balance was 25,287,300.
2. Public issuance of convertible bonds to raise funds
Approved by the China Securities Regulatory Commission on Approval of the Public Issuance of A-
Share Convertible Corporate Bonds by Bengang Steel Plate Co., Ltd. (Zheng Jian Permit [2020] No. 46),
the company was approved to publicly issue a total face value of 6.8 billion convertible bonds Corporate
bonds with a maturity of 6 years. The company actually issued 68 million convertible corporate bonds
to the public, each with a face value of 100 yuan, and the total raised funds were 6.8 billion yuan. After
deducting underwriting and sponsorship fees, issuance registration fees and other expenses, a total of
41,084,701.18 yuan (excluding tax) was raised. The net amount of funds is RMB 6,758,915,298.82. The
above funds have been transferred to the company's fund-raising account on July 6, 2020. BDO Shu Lun
24
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Pan Certified Public Accountants LLP verified the receipt of the funds raised above and issued Xin Kuai
Shi Bao Zi [2020] No. ZB11494 "Capital Verification Report".
As of the end of the reporting period, the company actually used the raised funds of RMB 2,425.36
million. As of September 30, 2020, the unused amount of the company's raised funds was 4,332.81
million, of which the supplementary working capital balance was 4,180 million, and the raised funds
account balance was 152.81 million.
VI. Forecast of 2020 Business Performance
A warning and explanation of the reason for predicting that the cumulative net profit from the beginning
of the year to the end of the next reporting period may be a loss or a significant change compared with
the same period of the previous year
□ Applicable √ Not applicable
VII. Major Contracts for Daily Operations
□ Applicable √ Not applicable
VIII. Entrusted Financial Management
□ Applicable √ Not applicable
There is no entrusted financial management in the reporting period.
IX. 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.
X. 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.
XI. 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.
25
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
IV. Financial Report
I. Financial Statements
1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Prepared by: Bengang Steel Plates Co., Ltd.
Unit: Yuan
Items Sep 30th , 2020 Dec 31st, 2019
Current assets:
Cash at bank and on hand 18,428,336,735.95 18,415,844,397.77
Settlement provisions
Capital lent
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable 237,139,957.62 235,696,265.66
Accounts receivable financing 5,164,706,591.79 2,429,542,461.88
Prepayments 1,251,892,309.68 1,291,047,458.11
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance
contract
Other receivables: 170,756,516.11 172,807,036.77
Including: Interest receivables 19,697,718.27 20,504,422.47
Dividend receivables
Redemptory financial assets for sale
Inventories 9,481,415,336.65 7,700,397,685.61
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 274,237,764.53 312,904,824.09
Total current assets 35,008,485,212.33 30,558,240,129.89
Non-current assets:
Loan and advances issued
26
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,642,998.70 2,642,998.70
Other equity instrument investments 1,042,024,829.00 1,041,824,829.00
Other non-current financial assets
Investment properties
Fixed assets 24,355,855,265.63 26,123,375,492.40
Construction in progress 3,187,454,346.07 1,833,853,572.58
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 278,072,797.76 271,500,023.34
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 182,418,902.56 191,485,595.49
Other non-current assets 1,143,710,464.79 708,502,552.50
Total non-current assets 30,192,179,604.51 30,173,185,064.01
Total assets 65,200,664,816.84 60,731,425,193.90
Current Liabilities:
Short-term loans 10,971,919,000.00 13,151,478,000.00
Loan from central bank
Absorbed deposit and interbank deposit
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 9,755,186,320.32 11,828,514,676.95
Accounts payable 5,650,489,113.68 4,527,513,030.27
Advance from customers 4,429,821,526.79
Contract Liabilities 4,395,896,282.20
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
27
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Employee benefits payable 64,817,798.23 23,698,174.56
Current tax liabilities 16,033,518.47 284,825,814.80
Other payables 685,226,321.42 662,701,744.97
Including: Interest payables 26,573,361.30 10,818,986.30
Dividend payables
Handling charges and commission
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
1,055,994,293.11 234,474,657.99
year
Other current liabilities
Total current liabilities 32,595,562,647.43 35,143,027,626.33
Non-current liabilities:
Provision for insurance contract
Long-term loans 3,917,863,991.04 4,849,675,910.73
Bonds payable 5,647,525,812.18
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 1,390,036,449.50 516,939,408.14
Long-term employee benefits payables
Estimated liabilities
Deferred income 174,010,233.06 208,955,407.30
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 11,129,436,485.78 5,575,570,726.17
Total liabilities 43,724,999,133.21 40,718,598,352.50
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments 1,146,290,662.42
Including: Preferred stock
Perpetual bond
Capital reserves 12,343,209,847.29 12,343,209,847.29
Less: treasury shares
28
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Other comprehensive income
Special reserves 28,016,257.43 212,687.41
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserves
Undistributed profits 2,591,274,953.72 2,307,765,664.62
Total equity attributable to equity holders of
20,945,268,782.71 19,487,665,261.17
the parent company
Non-controlling interests 530,396,900.92 525,161,580.23
Total shareholder’s equity 21,475,665,683.63 20,012,826,841.40
Total liabilities and shareholder’s equity 65,200,664,816.84 60,731,425,193.90
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, 2020 Dec 31st, 2019
Current assets:
Cash at bank and on hand 16,766,413,093.60 16,982,227,928.89
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable 374,165,618.46 388,997,108.46
Accounts receivable financing 4,753,243,417.46 2,193,319,842.60
Prepayments 1,151,892,309.68 1,184,632,345.13
Other receivables 254,693,349.32 266,663,235.81
Including: Interest receivables 19,697,718.27 19,658,230.77
Dividend receivables
Inventories 7,835,149,045.38 6,114,582,832.33
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 226,583,443.14 191,249,460.42
Total current assets 31,362,140,277.04 27,321,672,753.64
Non-current assets:
Debt investments
29
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Other debt investments
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 22,851,496,439.85 24,447,763,305.12
Construction in progress 3,119,248,726.75 1,813,889,136.42
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 183,630,437.72 145,470,040.68
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets 84,273,622.44 93,555,276.54
Other non-current assets 1,141,588,572.16 696,351,867.38
Total non-current assets 30,438,144,530.08 30,254,936,357.30
Total assets 61,800,284,807.12 57,576,609,110.94
Current Liabilities:
Short-term loans 10,011,919,000.00 11,851,478,000.00
Financial assets held for trading
Derivative financial liabilities
Notes payable 7,980,864,104.70 10,225,969,445.22
Accounts payable 5,631,646,967.19 4,909,389,629.86
Advance from customers 5,597,707,687.22
Contract liabilities 5,635,804,031.87
Employee benefits payable 63,498,749.91 21,872,906.71
Current tax liabilities 10,049,192.88 274,181,048.14
Other payables 387,153,718.08 384,125,032.59
Including: Interest payables 23,918,986.30 10,818,986.30
Dividend payables
Liabilities held for sale
Non-current liabilities due within one 1,055,994,293.11 234,474,657.99
30
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
year
Other current liabilities
Total current liabilities 30,776,930,057.74 33,499,198,407.73
Non-current liabilities:
Long-term loans 3,917,863,991.04 4,849,675,910.73
Bonds payable 5,647,525,812.18
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 1,390,036,449.50 516,939,408.14
Long-term employee benefits payable
Estimated liabilities
Deferred incomes 174,010,233.06 208,955,407.30
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 11,129,436,485.78 5,575,570,726.17
Total liabilities 41,906,366,543.52 39,074,769,133.90
Shareholders’ equity:
Share capital 3,875,371,532.00 3,875,371,532.00
Other equity instruments 1,146,290,662.42
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 24,191,289.71 53,330.99
Surplus reserves 961,105,529.85 961,105,529.85
Undistributed profits 1,963,901,084.45 1,742,251,419.03
Total shareholder’s equity 19,893,918,263.60 18,501,839,977.04
Total liabilities and shareholder’s equity 61,800,284,807.12 57,576,609,110.94
3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF THE
CURRENT REPORTING PERIOD
Unit: Yuan
Items The Current Period The Previous Period
31
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
1. Total operating income 12,667,300,144.93 14,441,830,940.38
Including: Operating income 12,667,300,144.93 14,441,830,940.38
Interest income
Premium earned
Income from handling charges
and commission
2. Total operating cost 12,682,362,775.14 14,421,363,860.63
Including: Operating cost 12,169,624,645.87 13,739,273,641.14
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 53,364,357.78 60,775,436.14
Selling and distribution expenses 255,130,098.08 257,155,173.90
General and administrative
200,521,607.24 219,140,981.53
expenses
Research and development
9,059,465.61 7,306,019.67
expenses
Financial expenses -5,337,399.44 137,712,608.25
Including: interest expenses 260,988,980.85 136,052,012.01
Interest incomes 91,001,679.51 89,695,933.07
Add: Other incomes 18,865,049.69 20,821,500.00
Income on investment ("-" for loss) 77,242.47
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)
32
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Gains from the change in fair value (“-"
for loss)
Expected credit losses (“-" for loss) 1,394,133.21 2,093,121.45
Asset impairment losses (“-" for loss) 48,426,143.08
Assets disposal gains（“-” for loss） 68,683.20 579,216.73
3. Operating profit ("-" for loss) 53,768,621.44 43,960,917.93
Add: Non-operating income 604,118.24 1,506,324.18
Less: Non-operating expenses 239,714.81 6,120,953.63
4. Total profit ("-" for loss) 54,133,024.87 39,346,288.48
Less: Income tax expenses 22,372,416.47 4,904,499.90
5. Net Profit ("-" for loss) 31,760,608.40 34,441,788.58
(1) Classification by continuing
operating
1 Net profit from continuing
31,760,608.40 34,441,788.58
operation
2 Net profit from discontinued
operation
(2) Classification by ownership
1 Net profit attributable to the
28,865,084.77 34,229,631.12
owners of parent company
2 Net profit attributable to non-
2,895,523.63 212,157.46
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
33
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
(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
Other comprehensive income attributable to
non-controlling shareholders after tax
7. Total comprehensive income 31,760,608.40 34,441,788.58
Total comprehensive income attributable
28,865,084.77 34,229,631.12
to owners of parent company
Total comprehensive income attributable
2,895,523.63 212,157.46
to non-controlling shareholders
8. Earnings per share:
1) Basic earnings per share 0.01 0.01
2) Diluted earnings per share 0.01 0.01
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 13,000,555,008.97 14,566,987,831.66
Less: Operating cost 12,660,551,211.93 14,024,765,556.43
34
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Taxes and surcharges 42,476,807.35 49,468,259.31
Selling and distribution expenses 163,145,859.93 147,799,392.26
General and administrative expenses 186,584,532.02 205,034,439.76
Research and development expenses 9,059,465.61 7,306,019.67
Financial expenses -8,934,597.73 127,265,933.34
Including: interest expenses 249,633,292.63 120,934,881.27
Interest incomes 81,952,729.77 84,996,191.09
Add: Other incomes 18,861,219.48 20,821,500.00
Income on investment ("-" for loss) 77,242.47 27,594,915.42
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) 1,394,133.21 1,245,121.45
Asset impairment losses (“-" for loss) 48,426,143.08
Assets disposal gains（“-” for loss） 68,683.20 579,216.73
2. Operating profit ("-" for loss) 16,499,151.30 55,588,984.49
Add: Non-operating income 574,699.43 1,141,958.73
Less: Non-operating expenses 226,440.47 6,116,261.39
3. Total profit ("-" for loss) 16,847,410.26 50,614,681.83
Less: Income tax expenses 12,455,069.07 521,085.42
4. Net Profit ("-" for loss) 4,392,341.19 50,093,596.41
(1) Net profit from continuing operation
4,392,341.19 50,093,596.41
("-" 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
35
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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
6. Total comprehensive income 4,392,341.19 50,093,596.41
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 34,851,837,404.98 38,544,426,107.52
Including: Operating income 34,851,837,404.98 38,544,426,107.52
36
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Interest income
Premium earned
Income from handling charges
and commission
2. Total operating cost 34,609,468,735.28 38,043,189,142.86
Including: Operating cost 32,609,871,008.54 35,806,886,370.79
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 141,762,794.46 174,900,799.11
Selling and distribution expenses 897,523,316.86 831,600,373.04
General and administrative
581,349,923.65 665,908,793.30
expenses
Research and development
29,262,450.81 22,714,491.95
expenses
Financial expenses 349,699,240.96 541,178,314.67
Including: interest expenses 700,850,334.78 703,293,515.07
Interest incomes 245,883,963.84 216,779,712.65
Add: Other incomes 57,452,382.09 62,516,500.00
Income on investment ("-" for loss) 106,546.47 25,907.49
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)
37
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Expected credit losses (“-" for loss) 4,881,916.63 5,844,635.28
Asset impairment losses (“-" for loss) 33,104,544.46
Assets disposal gains（“-” for loss） 394,334.81 2,997,921.07
6. Operating profit ("-" for loss) 338,308,394.16 572,621,928.50
Add: Non-operating income 1,744,482.36 9,716,506.42
Less: Non-operating expenses 20,275,186.23 64,095,275.68
7. Total profit ("-" for loss) 319,777,690.29 518,243,159.24
Less: Income tax expenses 31,610,231.55 30,866,681.63
8. Net Profit ("-" for loss) 288,167,458.74 487,376,477.61
(1) Classification by continuing
operating
1 Net profit from continuing
288,167,458.74 487,376,477.61
operation ("-" for loss)
2 Net profit from discontinued
operation ("-" for loss)
(2) Classification by ownership
1 Net profit attributable to the
283,509,289.10 487,439,246.88
owners of parent company
2 Net profit attributable to non-
4,658,169.64 -62,769.27
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
38
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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
Other comprehensive income attributable to
non-controlling shareholders after tax
7. Total comprehensive income 288,167,458.74 487,376,477.61
Total comprehensive income attributable
283,509,289.10 487,439,246.88
to owners of parent company
Total comprehensive income attributable
4,658,169.64 -62,769.27
to non-controlling shareholders
8. Earnings per share:
1) Basic earnings per share 0.07 0.13
2) Diluted earnings per share 0.07 0.13
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 34,760,336,691.09 38,014,203,689.59
Less: Operating cost 33,039,699,493.20 35,782,055,553.61
39
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Taxes and surcharges 116,717,589.70 133,935,663.72
Selling and distribution expenses 550,078,792.86 482,893,940.32
General and administrative expenses 541,211,684.30 647,086,930.06
Research and development expenses 29,262,450.81 22,714,491.95
Financial expenses 328,569,658.11 515,337,847.93
Including: interest expenses 659,897,744.52 659,441,927.72
Interest incomes 223,250,379.61 199,185,818.03
Add: Other incomes 56,863,565.01 62,516,500.00
Income on investment ("-" for loss) 77,242.47 27,594,915.42
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) 4,022,071.94 4,996,635.28
Asset impairment losses (“-" for loss) 33,104,544.46
Assets disposal gains（“-” for loss） 394,334.81 3,044,923.32
2. Operating profit ("-" for loss) 249,258,780.80 551,046,727.97
Add: Non-operating income 1,386,359.30 9,279,999.48
Less: Non-operating expenses 19,713,820.58 64,051,443.56
3. Total profit ("-" for loss) 230,931,319.52 496,275,283.89
Less: Income tax expenses 9,281,654.10 15,830,148.17
4. Net Profit ("-" for loss) 221,649,665.42 480,445,135.72
(1) Net profit from continuing operation
221,649,665.42 480,445,135.72
("-" 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
40
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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
6. Total comprehensive income 221,649,665.42 480,445,135.72
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 25,444,022,450.66 26,790,594,559.41
41
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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
financial institutions
Net increase of fund for buy-back
business
Tax rebate received 387,294,316.80 330,537,134.71
Other cash received relating to
168,025,766.48 179,458,663.12
operating activities
Subtotal of cash inflow received from
25,999,342,533.94 27,300,590,357.24
operation activities
Cash paid for goods and services 24,909,229,260.23 16,361,584,571.18
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
1,408,629,415.56 1,450,655,474.24
employees
42
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Cash paid for all types of taxes 758,524,302.98 911,658,861.03
Other cash paid relating to operating
330,588,899.59 351,573,590.15
activities
Subtotal of cash outflow received from
27,406,971,878.36 19,075,472,496.60
operation activities
Net cash flows generated from operating
-1,407,629,344.42 8,225,117,860.64
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 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
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other long-term 1,765,038,590.65 5,012,911,837.02
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
1,765,038,590.65 5,012,911,837.02
activities
The net cash flow generated by investment
-1,765,038,590.65 -5,012,911,837.02
activities
3. Cash flows from financing activities:
Proceeds from investment
Including: Proceeds from investment of
non-controlling shareholders of subsidiary
43
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Proceeds from borrowings 9,297,194,000.00 7,482,429,000.00
Other proceeds relating to financing
6,800,000,000.00
activities
Subtotal cash inflow received from financing
16,097,194,000.00 7,482,429,000.00
activities
Cash repayments of borrowings 11,555,411,601.25 6,938,475,606.71
Cash payments for distribution of
956,166,264.68 1,194,142,072.60
dividends, profit or interest expenses
Including: Cash paid to non-controlling
shareholders as dividend and profit by
subsidiaries
Other cash payments relating to
43,549,783.25
financing activities
Subtotal of cash outflows from financing
12,555,127,649.18 8,132,617,679.31
activities
The net cash flow generated by financing
3,542,066,350.82 -650,188,679.31
activities
4. Effect of foreign exchange rate changes on
-12,482,658.90 57,000,333.44
cash and cash equivalents
5. Net increase in cash and cash equivalents 356,915,756.85 2,619,017,677.75
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 ending of
13,798,330,745.43 14,371,566,299.72
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
24,484,591,411.24 25,300,199,068.22
rendering of services
Tax rebate received 324,249,789.72 284,437,850.97
Other cash received relating to
163,745,932.07 174,941,066.19
operating activities
Subtotal of cash inflow received from
24,972,587,133.03 25,759,577,985.38
operation activities
44
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Cash paid for goods and services 24,410,006,721.64 14,731,205,692.56
Cash paid to and on behalf of
1,344,314,670.02 1,371,069,525.86
employees
Cash paid for all types of taxes 660,630,096.94 789,815,447.75
Other cash paid relating to operating
291,312,691.44 310,224,763.98
activities
Subtotal of cash outflow received from
26,706,264,180.04 17,202,315,430.15
operation activities
Net cash flows generated from operating
-1,733,677,047.01 8,557,262,555.23
activities
2. Cash flows from investing activities:
Cash received from return on
27,594,915.42
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 inflow received from
27,594,915.42
investing activities
Cash paid for acquisition of fixed
assets, intangible assets and other long-term 1,746,442,503.88 5,006,076,777.58
assets
Cash paid for acquisition of investments
Net cash received from subsidiary and
other operating unit
Other cash paid relating to investing
activities
Subtotal of cash outflows from investing
1,746,442,503.88 5,006,076,777.58
activities
The net cash flow generated by investment
-1,746,442,503.88 -4,978,481,862.16
activities
3. Cash flows from financing activities:
Proceeds from investment
45
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Proceeds from borrowings 8,237,194,000.00 6,282,429,000.00
Other proceeds relating to financing
6,800,000,000.00
activities
Subtotal cash inflow received from financing
15,037,194,000.00 6,282,429,000.00
activities
Cash repayments of borrowings 10,155,411,601.25 5,438,545,606.71
Cash payments for distribution of
917,902,736.92 1,112,682,499.61
dividends, profit or interest expenses
Other cash payments relating to
43,549,783.25
financing activities
Subtotal of cash outflows from financing
11,116,864,121.42 6,551,228,106.32
activities
The net cash flow generated by financing
3,920,329,878.58 -268,799,106.32
activities
4. Effect of foreign exchange rate changes on
-12,477,383.25 56,922,645.03
cash and cash equivalents
5. Net increase in cash and cash equivalents 427,732,944.44 3,366,904,231.78
Add: Cash and cash equivalents at the
13,029,616,298.47 10,807,824,843.20
beginning of the period
6. Cash and cash equivalents at the ending of
13,457,349,242.91 14,174,729,074.98
the period
46
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
II. Adjustments of Financial Statements
1. Adjustments of beginning balance due to the first-time implementation of the new
revenue standards and new lease standards from 2020
√ Applicable □ Not applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Applicable □ Not applicable
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unit: yuan
Items Dec 31 ,2019
st
Jan 1 , 2020
st
Adjustment amount
Current assets:
Cash at bank and on hand 18,415,844,397.77 18,415,844,397.77
Settlement provisions
Capital lent
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts 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
Premium receivable
Reinsurance accounts receivable
Receivable deposit for
reinsurance contract
Other receivables: 172,807,036.77 172,807,036.77
Including: Interest receivables 20,504,422.47 20,504,422.47
Dividend receivables
Redemptory financial assets for
sale
Inventories 7,700,397,685.61 7,700,397,685.61
Contract assets
Assets classified as held for sale
Non-current assets due within
one year
Other current assets 312,904,824.09 312,904,824.09
47
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Total current assets 30,558,240,129.89 30,558,240,129.89
Non-current assets:
Loan and advances issued
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,642,998.70 2,642,998.70
Other equity instrument
1,041,824,829.00 1,041,824,829.00
investments
Other non-current financial assets
Investment properties
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
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 271,500,023.34 271,500,023.34
Development expenditure
Goodwill
Long-term deferred expenses
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
Loan from central bank
Absorbed deposit and interbank
deposit
Financial liabilities held for
trading
Derivative financial liabilities
Note payables 11,828,514,676.95 11,828,514,676.95
Account payables 4,527,513,030.27 4,527,513,030.27
Advance from customers 4,429,821,526.79 -4,429,821,526.79
48
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Contract liabilities 4,429,821,526.79 4,429,821,526.79
Financial assets sold for
repurchase
Deposits from customers and
interbank
Acting trading securities
Acting underwriting securities
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 payables 10,818,986.30 10,818,986.30
Dividend payables
Handling charges and
commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within
234,474,657.99 234,474,657.99
one year
Other current liabilities
Total current liabilities 35,143,027,626.33 35,143,027,626.33
Non-current liabilities:
Provision for insurance contract
Long-term loans 4,849,675,910.73 4,849,675,910.73
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 516,939,408.14 516,939,408.14
Long-term employee benefits
payables
Estimated liabilities
Deferred income 208,955,407.30 208,955,407.30
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 5,575,570,726.17 5,575,570,726.17
49
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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
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 212,687.41 212,687.41
Surplus reserves 961,105,529.85 961,105,529.85
General risk reserves
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
Total shareholder’s equity 20,012,826,841.40 20,012,826,841.40
Total liabilities and shareholder’s
60,731,425,193.90 60,731,425,193.90
equity
Notes:
None
STATEMENOT OF FINANCIAL POSITION OF THE PARENT COMPANY
Unit: Yuan
Items Dec 31st, 2019 Jan 1st, 2020 Adjustment amount
Current assets:
Cash at bank and on hand 16,982,227,928.89 16,982,227,928.89
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts 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 receivables 266,663,235.81 266,663,235.81
Including: Interest receivables 19,658,230.77 19,658,230.77
Dividend receivables
50
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Inventories 6,114,582,832.33 6,114,582,832.33
Contract assets
Assets classified as held for sale
Non-current assets due within one year
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:
Debt investments
Other debt investments
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 24,447,763,305.12 24,447,763,305.12
Construction in progress 1,813,889,136.42 1,813,889,136.42
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 145,470,040.68 145,470,040.68
Development expenditure
Goodwill
Long-term deferred expenses
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
Financial assets held for trading
Derivative financial liabilities
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
51
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
Contract liabilities 5,597,707,687.22 5,597,707,687.22
Employee benefits payable 21,872,906.71 21,872,906.71
Current tax liabilities 274,181,048.14 274,181,048.14
Other payables 384,125,032.59 384,125,032.59
Including: Interest payables 10,818,986.30
Dividend payables
Liabilities held for sale
Non-current liabilities due within one year 234,474,657.99 234,474,657.99
Other current liabilities
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
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables 516,939,408.14 516,939,408.14
Long-term employee benefits payable
Estimated liabilities
Deferred incomes 208,955,407.30 208,955,407.30
Deferred tax liabilities
Other non-current liabilities
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
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
Less: treasury shares
Other comprehensive income
Special reserves 53,330.99 53,330.99
Surplus reserves 961,105,529.85 961,105,529.85
52
Bengang Steel Plates Co., Ltd. Third Quarter Report 2020
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 shareholder’s equity 57,576,609,110.94 57,576,609,110.94
Notes:
None
2. Retroactive adjustment due to the first time implementation of the new revenue
standards 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.
53
