Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 April 2021 1 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 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, Lin Dong, the principal in charge of the accounting, and Cong Yajuan, 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 2021 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. 2021 Jan.-Mar. 2020 Changes (+/-) Operating income(RMB) 15,252,265,770.99 11,728,574,704.88 30.04% Net profit attributable to the shareholders of the listed company 686,599,759.65 177,998,575.36 285.73% (RMB) Net profit after deducting of non- recurring gain/loss attributable to the 678,208,256.33 168,656,828.67 302.12% shareholders of listed company (RMB) Net Cash flows generated by business -966,470,265.23 684,846,620.22 -241.12% operation(RMB) Basic earnings per share (RMB/Share) 0.18 0.05 260.00% Diluted earnings per share 0.18 0.05 260.00% (RMB/Share) Weighted average net assets yield (%) 3.21% 0.91% 2.30% 31 Mar. 2021 31 Dec 2020 Changes (+/-) Gross assets(RMB) 66,446,670,324.00 65,007,470,749.20 2.21% Net assets attributable to shareholders 21,713,721,738.01 21,018,296,389.10 3.31% of the listed company(RMB) Items and amount of non-recurring profit and loss √ Applicable □ Not applicable Unit: RMB Items Jan.-Mar. 2021 Notes Profit or loss from disposal of non-current assets (including the write-off part for which assets impairment -6,031,886.26 provision is made) Details of government subsidies recorded into current profits and loss(except such government subsidy closely related to the company’s normal business operation, 16,562,376.50 meeting the regulation of national policy and enjoyed constantly in certain quota or quantity according to a 3 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 certain standard) Other non-operating revenue and expenditure other than 707,688.34 above items Less: Impact of income tax 2,809,544.65 Impact of minority interests (after tax) 37,130.61 Total 8,391,503.32 -- 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 51,611 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 1,109,545,000 State-owned legal Iron (Group) 62.17% 2,409,628,094 person Frozen 102,100,000 Co., Ltd. CCB Principal Asset Management – Others 4.77% 184,842,883 ICBC – CR Trust – CR 4 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 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 Liaoning Provincial State-owned legal Transportation 4.33% 167,765,783 person Investment Group Co., Ltd. CR Yuanta Fund Management – Huatai Securities – CR Yuanta Fund Others 0.34% 12,990,123 Runhong Xingsheng Collective Assets Management Plan Fang Lei Domestic natural 0.28% 10,885,300 5 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 person Domestic natural Zhang Peng 0.21% 8,287,900 person VANGUARD EMERGING Overseas legal MARKETS 0.21% 8,157,311 person STOCK INDEX Domestic natural Chen Jinhong 0.19% 7,500,375 person 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 2,409,628,094 2,409,628,094 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 Liaoning Provincial Transportation Common shares 167,765,783 167,765,783 Investment Group Co., Ltd. in RMB CR Yuanta Fund Management – Huatai Securities – CR Yuanta Fund Common shares 12,990,123 12,990,123 Runhong Xingsheng Collective in RMB Assets Management Plan Common shares Fang Lei 10,885,300 10,885,300 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 2021 FUND domestic exchange Common shares Chen Jinhong 7,500,375 7,500,375 in RMB 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 2,170,628,094 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 Shareholders among the top 10 shares. participating in securities margin CR Yuanta Fund Management – Huatai Securities – CR Yuanta Fund Runhong trading (if any) Xingsheng Collective Assets Management Plan holds 12,990,123 shares through the investor's credit securities account. Fang Lei holds 10,885,300 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 2021 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 beginning of the year Increase / 1. Statement of Financial Position Reasons Decrease Other current assets 52% Due to the increase of purchase of financing products. Construction in progress 31% Due to the increase of construction in progress. Due to the increase of unpaid value-added tax at the Current tax liabilities 97% end of the period. Non-current liabilities due within Due to the long-term loans converted into borrowings -79% one year due within one year. Long-term payables 41% Due to the increase of lease payment. Due to the increase in the unused amount of the safety Special reserves 2208% 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 2020 2. Statement of comprehensive Increase / Reasons income Decrease Due to the increase of settlement compared to the Operating income 30% comparable period. Due to the increase of value added tax during the Tax and surcharges 101% current period. Due to the increase of income tax paid during the Income tax expenses 15605% current period. Increase / 3. Statement of cash flows Reasons Decrease Due to the increase of export tax rebate during the Tax rebate received 178% current period. Due to the increase of cash paid for goods and services Cash paid for goods and services 62% during the period Due to the decrease of value added tax payment during Cash paid for all types of taxes -33% the period. 8 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Cash paid for acquisition of fixed Due to the increase of cash paid for acquisition of assets, intangible assets and other 88% fixed assets, intangible assets and other long-term long-term assets assets Cash received from borrowings -31% Due to the decrease of cash received from the loan 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 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 As of the end of the reporting period, the company used a total of RMB 3,278.59 million to raise funds, and the unused amount was RMB 684.38 million, of which the balance of supplementary working capital was RMB 660 million and the balance of the account of raised funds was RMB 24.38 million. 2. Public issuance of convertible bonds to raise funds As of the end of the reporting period, the company actually used the raised funds of RMB 2,463.52 million, the unused 9 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 amount of the company's raised funds was 4,299.95 million, of which the supplementary working capital balance was 4,180 million, and the raised funds account balance was 119.95 million. VI. Forecast of Business Performance from Jan-Jun 2021 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. 10 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Ⅳ Financial Statement Ⅰ. Financial Statement 1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Prepared by: Bengang Steel Plates Co., Ltd. 31 March 2021 Unit: RMB Item Mar 31, 2021 Mar 31, 2020 Current asset Cash at bank and on hand 9,607,066,518.46 13,126,666,915.26 Settlement provisions Capital lent Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable 230,497,087.25 245,217,182.66 Accounts receivable financing 3,671,070,272.83 4,189,977,871.92 Prepayments 2,171,613,244.35 2,108,044,777.65 Premium receivable Reinsurance accounts receivable Receivable deposit for reinsurance contract Other receivables 140,438,311.17 142,101,351.27 Including:Interest receivable Dividend receivable Redemptory financial assets for sale Inventories 10,030,853,051.80 9,040,065,342.65 Contract assets Assets held for sale Non-current assets due within one year Other current assets 8,401,071,869.02 5,523,646,836.01 Total current assets 34,252,610,354.88 34,375,720,277.42 Non-current assets 11 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Loan and advances issued Debt investment Other debt investments Long-term receivables Long-term equity investments 2,788,647.95 2,742,064.73 Other equity investments 1,042,024,829.00 1,042,024,829.00 Other non-current financial assets Investment property Fixed assets 25,741,811,447.00 26,284,567,956.44 Construction in progress 2,404,248,545.89 1,839,933,715.58 Productive biological assets Oil and gas assets Right-of-use assets 1,526,203,644.87 Intangible assets 263,290,809.84 264,932,652.54 Development expenditure Goodwill Long-term deferred expenses Deferred tax assets 202,210,114.90 201,708,932.84 Other non-current assets 1,011,481,929.67 995,840,320.65 Total non-current assets 32,194,059,969.12 30,631,750,471.78 Total assets 66,446,670,324.00 65,007,470,749.20 Current Liabilities Short-term loans 10,066,547,000.00 10,067,731,000.00 Loan from central bank Loan from other financial institutions Financial liability held for trading Derivative financial liabilities Notes payable 8,209,448,728.97 9,814,149,348.42 Accounts payable 4,924,702,174.04 5,914,228,256.82 Advance from customers Contract liabilities 5,742,773,223.88 4,458,671,819.90 Financial assets sold for repurchase Absorbed deposit and interbank deposit Receiving from vicariously traded 12 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 securities Receiving from vicariously sold securities Employee benefits payable 30,000,623.55 25,749,485.25 Current tax liabilities 109,067,499.02 55,302,080.96 Other payables 659,520,679.27 709,448,301.92 Including:Interest payable Dividend payable Handling charges and commission payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one year 273,845,934.19 1,308,030,361.43 Other current liabilities 746,560,519.10 579,627,336.58 Total current liabilities 30,762,466,382.02 32,932,937,991.28 Non-current liabilities Standard insurance contract provision Long-term loans 4,507,016,155.89 3,502,934,427.65 Bonds payable 5,760,237,114.37 5,752,229,339.52 Including: Preferred stock Perpetual bond Lease liabilities 1,459,524,066.81 Long-term payables 1,565,647,536.69 1,114,232,362.74 Long-term employee benefits payable Estimated liabilities Deferred income 139,254,976.73 154,451,833.23 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 13,431,679,850.49 10,523,847,963.14 Total liabilities 44,194,146,232.51 43,456,785,954.42 Shareholders’ equity Share capital 3,875,898,553.00 3,875,371,532.00 Other equity instruments 1,145,842,934.77 1,146,290,662.42 Including: Preferred stock Perpetual bond Capital reserve 12,345,322,779.09 12,343,209,847.29 13 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Less: treasury shares Other comprehensive income Special reserves 6,933,776.25 300,412.14 Surplus reserves 961,105,529.85 961,105,529.85 General risk reserve Undistributed profits 3,378,618,165.05 2,692,018,405.40 Total equity attributable to equity holders 21,713,721,738.01 21,018,296,389.10 of the parent company Non-controlling interests 538,802,353.48 532,388,405.68 Total shareholder's equity 22,252,524,091.49 21,550,684,794.78 Total of liabilities and owners’ equity 66,446,670,324.00 65,007,470,749.20 Legal Representative: Gao Lie Chief Financial Officer: Lin Dong Chief Accountant: Cong Yajuan 2. STATEMENT OF FINANCIAL POSITION Unit: RMB Items Mar 31, 2021 Mar 31, 2020 Current asset Cash at bank and on hand 8,699,983,948.15 11,808,618,300.87 Financial assets held for trading Derivative financial assets Notes receivable Accounts receivable 252,514,276.65 289,865,462.20 Accounts receivable financing 3,468,358,869.69 4,143,431,412.08 Prepayments 2,189,467,531.08 2,117,204,935.75 Other receivables 225,617,247.75 228,180,190.02 Including: Interest receivables Dividend receivables Inventories 7,542,794,098.05 7,420,499,172.20 Contract assets Assets held for sale Non-current assets due within one year Other current assets 8,255,070,265.21 5,437,282,088.94 Total current assets 30,633,806,236.58 31,445,081,562.06 14 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 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 24,281,210,747.86 24,755,665,765.30 Construction in progress 2,360,656,651.69 1,798,639,941.58 Productive biological assets Oil and gas assets Right-of-use assets 1,526,203,644.87 Intangible assets 141,337,369.08 142,163,903.40 Development expenditure Goodwill Long-term deferred expense Deferred tax assets 98,227,517.87 98,480,706.23 Other non-current assets 1,004,117,035.55 988,475,426.53 Total non-current assets 32,469,659,698.08 30,841,332,474.20 Total assets 63,103,465,934.66 62,286,414,036.26 Current liabilities Short-term loans 9,146,547,000.00 9,107,731,000.00 Financial liabilities held for trading Derivative financial liabilities Notes payable 7,104,509,084.22 8,348,607,405.21 Accounts payable 5,007,719,335.88 6,280,468,684.34 Advance from customers Contract liabilities 5,985,572,402.79 5,324,357,761.83 Employee benefits payable 28,917,395.58 23,981,010.53 Current tax liabilities 88,955,193.39 42,514,891.31 Other payables 337,705,358.21 368,374,954.61 Including:Interest payables Dividend payables 15 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Liabilities held for sale Non-current liabilities due within one 273,845,934.19 1,308,030,361.43 year Other current liabilities 778,124,412.36 692,166,509.04 Total current liability 28,751,896,116.62 31,496,232,578.30 Non-current liability Long term loans 4,507,016,155.89 3,502,934,427.65 Bonds payable 5,760,237,114.37 5,752,229,339.52 Including: Preferred stock Perpetual bond Lease liabilities 1,459,524,066.81 Long-term payables 1,558,547,658.07 1,108,412,163.50 Long-term employee benefits payables Estimated liabilities Deferred income 139,254,976.73 154,451,833.23 Deferred tax liabilities Other non-current liabilities Total non-current liabilities 13,424,579,971.87 10,518,027,763.90 Total liabilities 42,176,476,088.49 42,014,260,342.20 Shareholder’s equity: Share capital 3,875,898,553.00 3,875,371,532.00 Other equity instruments 1,145,842,934.77 1,146,290,662.42 Including: Preferred stock Perpetual bond Capital reserves 11,925,171,096.97 11,923,058,165.17 Less: Treasury shares Other comprehensive income Special reserves 5,702,059.36 120,972.62 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed Profits 3,013,269,672.22 2,366,206,832.00 Total shareholder's equity 20,926,989,846.17 20,272,153,694.06 Total liabilities and shareholder’s 63,103,465,934.66 62,286,414,036.26 equity 16 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unit: RMB Item Jan.-Mar. 2021 Jan.-Mar. 2020 1. Total operating income 15,252,265,770.99 11,728,574,704.88 Including: Operating income 15,252,265,770.99 11,728,574,704.88 Interest income Premium earned Income from handling charges and commission 2. Total operating cost 14,342,475,515.13 11,541,446,733.82 Including: Operating cost 13,850,889,731.59 10,759,718,222.36 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 103,677,773.51 51,561,831.30 Selling and distribution expenses 21,419,092.78 315,712,277.98 General and administrative 197,489,963.37 185,915,642.34 expenses Research and development 9,276,704.82 8,416,671.23 expenses Financial expenses 159,722,249.06 220,122,088.61 Including: Interest expense 248,978,172.74 246,021,732.55 Interest income 114,535,834.58 72,914,133.66 Add: Other income 16,562,376.50 18,439,817.04 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 2021 Exchange gains Net exposure hedging income (“-” for loss) Gains from the change of fair value (“-” for loss) Credit impairment losses 1,012,753.44 (“-” for loss Asset impairment losses -19,207,549.90 (losses are listed with "-") Assets disposal gains(“-” 130,675.05 for loss) 3. Operational profit(“-” for loss) 927,496,060.85 186,360,238.20 Add: Non-operating income 873,594.74 282,400.25 Less: Non-operating expenses 6,197,792.66 6,256,330.10 4. Total profit (“-” for loss) 922,171,862.93 180,386,308.35 Less: Income tax expenses 229,308,801.27 1,460,096.83 5. Net profit(“-” for loss) 692,863,061.66 178,926,211.52 1.Classification by continuing operating (1) Net profit from continuing 692,863,061.66 178,926,211.52 operation (2) Net profit from discontinued operation 2.Classification by ownership (1) Net profit attributable to the 686,599,759.65 177,998,575.36 owners of parent company (2) Net profit attributable to non- 6,263,302.01 927,636.16 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 2021 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 692,863,061.66 178,926,211.52 Total comprehensive income attributable to the owner of the parent 686,599,759.65 177,998,575.36 company Total comprehensive income 6,263,302.01 927,636.16 attributable to non-controlling shareholders 8. Earnings per share 1) Basic earnings per share 0.18 0.05 2) Diluted earnings per share 0.18 0.05 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: Lin Dong Chief Accountant: Cong Yajuan 19 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 4. STATEMENT OF COMPREHENSIVE INCOME Unit: RMB Item Jan.-Mar. 2021 Jan.-Mar. 2020 1. Total operating income 16,037,471,133.52 12,263,353,879.66 Less: Operating cost 14,725,993,329.30 11,478,300,497.98 Tax and surcharges 91,690,471.51 44,905,595.40 Selling and distribution expenses 19,785,727.27 186,148,487.15 General and administrative expenses 184,199,235.18 171,553,819.80 Research and development expenses 9,276,704.82 8,416,671.23 Financial expenses 155,122,738.36 212,078,788.48 Including: Interest expense 238,120,530.02 231,068,313.59 Interest income 108,194,621.37 65,935,368.22 Add: Other income 16,122,376.50 18,009,908.60 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 1,012,753.44 (“-” for loss) Asset impairment loss -19,207,549.90 (“-” for loss) Assets disposal gains(“-” 130,675.05 for loss) 2. Operational profit(“-” for loss) 868,668,732.07 160,752,378.32 Add: Non-operating income 617,098.70 225,882.20 Less: Non-operating expenses 6,197,792.66 6,069,498.66 3. Total profit (“-” for loss) 863,088,038.11 154,908,761.86 Less: Income tax expenses 216,025,197.89 -4,801,887.48 4. Net profit(“-” for loss) 647,062,840.22 159,710,649.34 1.Net profit from continuing operation 647,062,840.22 159,710,649.34 20 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 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 647,062,840.22 159,710,649.34 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 2021 Item Jan.-Mar. 2021 Jan.-Mar. 2020 1.Cash flow from operating activities Cash received from sale of goods or 9,965,304,063.89 7,864,260,416.76 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 receiving from vicariously traded securities Tax rebate received 35,592,041.90 12,824,913.18 Other cash received relating to operating 44,680,105.17 50,831,445.98 activities Subtotal of cash inflows from operating 10,045,576,210.96 7,927,916,775.92 activities Cash paid for goods and services 10,187,896,266.01 6,282,057,238.94 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 499,525,498.95 481,908,334.86 22 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Cash paid for all types of taxes 304,963,305.18 458,533,701.03 Other cash paid relating to operating 19,661,406.05 20,570,880.87 activities Subtotal of cash outflows from operating 11,012,046,476.19 7,243,070,155.70 activities Net cash flows from operating activities -966,470,265.23 684,846,620.22 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, 420,987,681.05 224,332,091.19 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 3,000,000,000.00 activities Subtotal of cash outflows from investing 3,420,987,681.05 224,332,091.19 activities Net cash flows from investing activities -3,420,987,681.05 -224,332,091.19 3. Cash flows from financing activities Proceeds from investment Including: Proceeds from investment of non-controlling shareholders of subsidiary Proceeds from borrowings 1,512,381,000.00 2,197,194,000.00 Other proceeds relating to financing activities 23 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Subtotal of cash inflows from financing 1,512,381,000.00 2,197,194,000.00 activities Cash repayments of borrowings 1,556,333,658.67 2,916,611,584.62 Cash payments for distribution of 266,480,285.50 263,567,150.15 dividends, profit or interest expenses Including: Cash paid to non-controlling shareholders as dividend and profit by subsidiaries Other cash payments relating to financing activities Subtotal of cash outflows from financing 1,822,813,944.17 3,180,178,734.77 activities Net cash flows from financing activities -310,432,944.17 -982,984,734.77 4. Effect of foreign exchange rate changes 1,302,002.14 37,441,237.39 on cash and cash equivalents 5. Net increase in cash and cash -4,696,588,888.31 -485,028,968.35 equivalents Add: Cash and cash equivalents at the 9,229,417,595.12 13,441,414,988.58 beginning of the period 6. Cash and cash equivalents at the 4,532,828,706.81 12,956,386,020.23 ending of the period 6. STATEMENT OF CASH FLOWS Unit: RMB Item Jan.-Mar. 2021 Jan.-Mar. 2020 1. Cash flow from operating activities Cash received from sale of goods or 9,900,871,109.50 7,801,529,586.28 rendering of services Tax rebate received 15,393,055.96 Other cash received relating to operating 35,586,079.84 39,105,003.15 activities Subtotal of cash inflows from operating 9,951,850,245.30 7,840,634,589.43 activities Cash paid for goods and services 10,159,123,025.48 6,197,815,675.01 Cash paid to and on behalf of employees 477,144,855.89 459,560,419.78 Cash paid for all types of taxes 270,877,880.57 434,526,418.13 Other cash paid relating to operating 15,425,570.97 16,129,733.15 24 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 activities Subtotal of cash outflows from operating 10,922,571,332.91 7,108,032,246.07 activities Net cash flows from operating activities -970,721,087.61 732,602,343.36 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, 412,255,336.94 218,474,831.02 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 3,000,000,000.00 activities Subtotal of cash outflows paid for 3,412,255,336.94 218,474,831.02 investing activities Net cash flows from investing activities -3,412,255,336.94 -218,474,831.02 3. Cash flows from financing activities Proceeds from investment Cash received from borrowings 1,412,381,000.00 1,957,194,000.00 Other cash received relating to financing activities Subtotal of cash inflows from financing 1,412,381,000.00 1,957,194,000.00 activities Cash repayments of borrowings 1,421,333,658.67 2,676,611,584.62 Cash payments for distribution of 252,542,952.15 249,495,900.16 dividends, profit or interest 25 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Other cash payments relating to financing activities Subtotal of cash outflows from financing 1,673,876,610.82 2,926,107,484.78 activities Net cash flows from financing activities -261,495,610.82 -968,913,484.78 4. Effect of foreign exchange rate changes 1,300,453.72 33,421,536.16 on cash and cash equivalents 5. Net increase in cash and cash -4,643,171,581.65 -421,364,436.28 equivalents Add: Cash and cash equivalents at the 8,897,859,003.60 13,029,616,298.47 beginning of the period 6. Ending balance of cash and cash 4,254,687,421.95 12,608,251,862.19 equivalents Ⅱ. Adjustment of Financial Statement 1. Adjustment to the financial statement towards beginning balance due to the first-time implementation of new leasing standards from 2021. √ Applicable □ Not applicable Whether to adjust the balance sheet account at the beginning of the year √ Applicable □ Not applicable CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unit: RMB Item 31 December 2020 1 January 2021 Adjustment amount Current assets Cash at bank and on hand 13,126,666,915.26 13,126,666,915.26 Account receivable 245,217,182.66 245,217,182.66 Accounts receivable financing 4,189,977,871.92 4,210,303,818.58 Prepayments 2,108,044,777.65 1,842,668,037.12 Other receivable 142,101,351.27 165,329,297.77 Inventories 9,040,065,342.65 9,043,886,183.05 Other current assets 5,523,646,836.01 5,523,520,390.81 Total current assets 34,375,720,277.42 34,157,591,825.25 Non-current assets Long-term equity investments 2,742,064.73 2,788,647.95 26 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Other equity investments 1,042,024,829.00 1,042,024,829.00 Fixed assets 26,284,567,956.44 26,284,567,956.44 Construction in progress 1,839,933,715.58 1,839,933,715.58 Right-of-use assets 1,541,868,510.81 1,541,868,510.81 Intangible assets 264,932,652.54 264,932,652.54 Deferred tax assets 201,708,932.84 200,866,214.95 Other non-current assets 995,840,320.65 1,237,539,145.81 Total non-current assets 30,631,750,471.78 32,414,521,673.08 1,541,868,510.81 Total assets 65,007,470,749.20 66,572,113,498.33 1,541,868,510.81 Current Liabilities Short-term loans 10,067,731,000.00 10,067,731,000.00 Notes payable 9,814,149,348.42 9,834,475,295.08 Accounts payable 5,914,228,256.82 5,914,228,256.82 Contract liabilities 4,458,671,819.90 4,458,671,819.90 Employee benefits payable 25,749,485.25 25,749,485.25 Current tax liabilities 55,302,080.96 55,301,055.34 Other payables 709,448,301.92 708,349,201.31 Non-current liabilities due within 1,308,030,361.43 1,308,030,361.43 one year Other current liabilities 579,627,336.58 Total current liabilities 32,932,937,991.28 32,952,163,811.71 Non-current liabilities Long-term loans 3,502,934,427.65 3,502,934,427.65 Bonds payables 5,752,229,339.52 5,752,229,339.52 Lease liabilities 1,541,868,510.81 1,541,868,510.81 Long-term payables 1,114,232,362.74 1,114,232,362.74 Deferred income 154,451,833.23 154,451,833.23 Total non-current liabilities 10,523,847,963.14 12,065,716,473.95 1,541,868,510.81 Total liabilities 43,456,785,954.42 45,017,880,285.66 1,541,868,510.81 Shareholders' equity: Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments 1,146,290,662.42 1,146,290,662.42 Capital reserve 12,343,209,847.29 12,343,209,847.29 Special reserves 300,412.14 300,412.14 27 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed profits 2,692,018,405.40 2,695,566,823.29 Total equity attributable to equity 21,018,296,389.10 21,021,844,806.99 holders of the parent company Non-controlling interests 532,388,405.68 532,388,405.68 Total shareholder's equity 21,550,684,794.78 21,554,233,212.67 Total of liabilities and owners’ 65,007,470,749.20 66,572,113,498.33 1,541,868,510.81 equity Illustration of adjustment STATEMENT OF FINANCIAL POSITION Unit: RMB Item 31 December 2020 1 January 2021 Adjustment amount Current assets Cash at bank and on hand 11,808,618,300.87 11,808,618,300.87 Account receivable 289,865,462.20 289,865,462.20 Accounts receivable financing 4,143,431,412.08 4,143,431,412.08 Prepayments 2,117,204,935.75 1,851,828,195.22 Other receivable 228,180,190.02 251,408,136.72 Inventories 7,420,499,172.20 7,420,679,014.84 Other current assets 5,437,282,088.94 5,437,282,088.94 Total current assets 31,445,081,562.06 31,203,112,610.87 Non-current assets 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 Fixed assets 24,755,665,765.30 24,755,665,765.30 Construction in progress 1,798,639,941.58 1,798,639,941.58 Right-of-use assets 1,541,868,510.81 1,541,868,510.81 Intangible assets 142,163,903.40 142,163,903.40 Deferred tax assets 98,480,706.23 98,548,237.73 Other non-current assets 988,475,426.53 1,230,174,251.69 Total non-current assets 30,841,332,474.20 32,624,967,341.67 1,541,868,510.81 Total assets 62,286,414,036.26 63,828,079,952.54 1,541,868,510.81 Current liabilities Short-term loans 9,107,731,000.00 9,107,731,000.00 28 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Notes payable 8,348,607,405.21 8,348,607,405.21 Accounts payable 6,280,468,684.34 6,280,468,684.34 Contract Liabilities 5,324,357,761.83 5,324,357,761.83 Employee benefits payable 23,981,010.53 23,981,010.53 Current tax liabilities 42,514,891.31 42,514,891.31 Other payables 368,374,954.61 368,374,954.61 Non-current liabilities due within 1,308,030,361.43 1,308,030,361.43 one year Other current liabilities 692,166,509.04 Total current liabilities 31,496,232,578.30 31,496,232,578.30 Non-current liabilities Long term loans 3,502,934,427.65 3,502,934,427.65 Bonds payable 5,752,229,339.52 5,752,229,339.52 Lease liabilities 1,541,868,510.81 1,541,868,510.81 Long-term payables 1,108,412,163.50 1,108,412,163.50 Deferred income 154,451,833.23 154,451,833.23 Total non-current liabilities 10,518,027,763.90 12,059,896,274.71 1,541,868,510.81 Total liabilities 42,014,260,342.20 43,556,128,853.01 1,541,868,510.81 Shareholder’s equity: Share capital 3,875,371,532.00 3,875,371,532.00 Other equity instruments 1,146,290,662.42 1,146,290,662.42 Capital reserves 11,923,058,165.17 11,923,058,165.17 Special reserves 120,972.62 120,972.62 Surplus reserves 961,105,529.85 961,105,529.85 Undistributed Profits 2,366,206,832.00 2,366,004,237.47 Total shareholder's equity 20,272,153,694.06 20,271,951,099.53 Total liabilities and 62,286,414,036.26 63,828,079,952.54 1,541,868,510.81 shareholder’s equity Illustration of adjustment 2. Illustration of the first implementation of the new lease standards, retrospective adjustment towards the previous data from 2021. □ Applicable √ Not applicable 29 Bengang Steel Plates Co., Ltd. First Quarter Report 2021 Ⅲ. Audit report Whether the first quarter report is audited □ Yes √ No The first quarter report is not audited. 30