Bengang Steel Plates Co. Ltd.

Annual Report 2019

April 2020

I. Important Notice Table of Contents and Definitions

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.Gao Lie chairman of the Company Shen Qiang Chief financial officer and Zhao

Zhonghua the person in charge of the accounting department (the person in charge of

the accounting) make the pledge for the authenticity accuracy and integrity of the

attached financial statements.

All the members of the Board of Directors attended the board meeting on which this

report was examined.The prospective statements contained in this annual report do not constitute any

substantial commitment to the investors. Investors should pay attention to the risks

attached to investment decisions. This report is prepared in both of Chinese and English.The Chinese version shall prevail when there are any controversial statements in the

two versions.The company has described the existing risks and countermeasures in detail in thisreport. Please refer to Section 4-9 “Prospects for the Future Development of the

Company”. “China Securities Journal” “Securities Times” “Hong Kong Commercial

Daily” and Juchao Information Network (www.cninfo.com.cn) are the company's

selected information disclosure media. All information of the company is based on the

information published in the above-mentioned designated media. Investors are advised

to pay attention to investment risks.The company plans not to distribute any cash dividends bonus shares and not converse

capital reserve to share capital.

Table of Contents

I. IMPORTANT NOTICE TABLE OF CONTENTS AND DEFINITIONS .......................................................... 2

II. COMPANY PROFILE AND MAIN FINANCIAL INDEX ...................................................................................... 5

III. SUMMARY OF COMPANY BUSINESS ................................................................................................................ 9

IV. MANAGEMENT DISCUSSION AND ANALYSIS .............................................................................................. 12

V. IMPORTANT EVENTS ............................................................................................................................................ 25

VI. STATUS OF SHARE CAPITAL CHANGES AND SHAREHOLDERS ............................................................ 75

VII. STATUS OF PREFERRED SHARES .................................................................................................................. 81

VIII. STATUS OF CONVERTIBLE CORPORATE BONDS ................................................................................... 82

IX. STATUS OF DIRECTORS SUPERVISORS SENIOR EXECUTIVES AND EMPLOYEES ........................ 83

X. CORPORATE GOVERNANCE .............................................................................................................................. 91

XI. RELEVANT INFORMATION ABOUT CORPORATE BONDS ....................................................................... 98

XII. FINANCIAL REPORT .......................................................................................................................................... 99

XIII. DOCUMENTS AVAILABLE FOR INSPECTION ......................................................................................... 241

Definition

Terms to be defined Refers to Definition

Bengang Bancai Bengang Steel the Company the

Listed Company Refers to Bengang Steel Plates Co. Ltd.

Bengang Group Refers to Bengang Group Co. Ltd.

Bengang Co. Refers to Benxi Steel & Iron (Group) Co. Ltd.

Liaoning Provincial State-asset Administration Refers to Liaoning State-owned Asset Supervisory and Management Committee

SSE Refers to Shenzhen Stock Exchange

Bengang Puxiang Refers to Bengang Puxiang Cool Rolling Steel Sheet Co. Ltd.

II. Company Profile and Main Financial Index

I. Company Information

Stock abbreviation Bengang Bancai Bengangban B Stock Code 000761 200761

Stock exchange for listing Shenzhen Stock Exchange

Company name in Chinese 本钢板材股份有限公司

Abbreviation of Company name in

Chinese 本钢板材

Company name in English (If any) BENGANG STEEL PLATES CO.LTD.

Abbreviation of Company name in

English (If any) BSP

Legal representative Gao Lie

Registration Address No.16 Renmin Road Pingshan District Benxi City Liaoning Province

Post Code of registration Address 117000

Office address No.16 Renmin Road Pingshan District Benxi City Liaoning Province

Post Code of office address 117000

Web Address None

Email bgbcdm@163.com

II. Contact Information

Secretary of Board of Directors Representative of Securities Affairs

Name Gao Desheng Chen Liwen

Address No.16 Renmin Road Pingshan District Benxi City Liaoning Province

No.16 Renmin Road Pingshan District

Benxi City Liaoning Province

Tel 024-47827003 024-47828980

Fax 024-47827004 024-47827004

Email bgbcdm@163.com bgbcclw@126.com

III. Information Disclosure and Place for Consulting

Press media for information disclosure China Securities Journal Securities Times Hong Kong Commercial Daily

Web address for the annual report as assigned by

CSRC http://www.cninfo.com.cn

Place for inquiry of the annual report Secretary Office of the Board Bengang Steel Plate Co. Ltd.IV. Change of Business Registration

Organization Code 91210000242690243E

Changes of principal business activities since listing (if any) No change

Changes of the controlling shareholder in the past (is any) No change

V. Other Information

Accountants’ firm engaged by the Company:

Name of the accountants’ firm BDO China Shu Lun Pan Certified Public Accountants LLP

Address of the accountants’ firm Address: 4/F 61 Nanjing Rd. East Huangpu Shanghai

Signing name of accountants Wu Xue Li Guiying

Sponsor engaged by the Company to conduct sustained supervision during the reporting period

√ Applicable □ Not applicable

Name of the sponsor institution Address of the sponsor institution

Name of the sponsor

representative Sustained supervision period

Shenwan Hongyuan Securities

Underwriting Sponsoring Co.Ltd.No. 19 Taiping Bridge Street

Xicheng District Beijing Zhang Wei Liu Guoku

March 5th 2018 to August 8th

2019

Guotai Junan Securities Co.Ltd.No. 768 Nanjing West Road

Jingan District Shanghai Feng Jinjun Chen Ze

August 9th 2019 to December

31st 2019

Financial consultancy institution engaged by the Company to conduct sustained supervision during the reporting period

□ Applicable √ Not applicable

VI. Main Accounting Data and Financial Index

Whether the Company makes retroactive adjustment or restatement of the accounting data of the last years due to change of the

accounting policy and correction of accounting errors

□ Yes √ No

2019 2018 Changes over last year 2017

Operating income（RMB） 52741353582.28 50181869721.54 5.10% 40507855843.72

Net profit attributable to the shareholders

of the listed company（RMB） 555646971.40 1036493236.07 -46.39% 1600110229.77

Net profit after deducting of non-recurring

gain/loss attributable to the shareholders

of listed company（RMB）

549528817.13 1093065140.59 -49.73% 1607675869.15

Net Cash flow generated by business

operation（RMB） 6977824041.16 3619937841.93 92.76% 2744243492.51

Basic earnings per share (RMB/Share) 0.143 0.272 -47.43% 0.51

Diluted earnings per share (RMB/Share) 0.143 0.272 -47.43% 0.51

Weighted average net assets yield 2.88% 5.64% -2.76% 11.84%

End of 2019 End of 2018 Changed over last year End of 2017

Gross assets（RMB） 60731425193.90 59632504915.83 1.84% 62998143513.02

Net assets attributable to shareholders of

the listed company（RMB） 19487665261.17 19126258116.67 1.89% 14315588729.00

VII. Differences between Domestic and Foreign Accounting Standards

1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese

accounting standards.

□ Applicable √ Not applicable

There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting standards

during the reporting period.

2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese

accounting standards.

□ Applicable √ Not applicable

There are no differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting

standards during the reporting period.VIII. Main Financial Index by Quarters

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter

Operation income 11761190575.63 12341404591.51 14441830940.38 14196927474.80

Net profit attributable to the

shareholders of the listed company 271606318.07 181603297.69 34229631.12 68207724.50

Net profit after deducting non-

recurring gain/loss attributable to

the shareholders of listed company

259096025.14 202242384.99 18176874.87 70013532.10

Net cash flows generated by

operating activities 2752557195.47 -1767770189.80 7240330854.97 -1247293819.48

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly

report as well as semi-annual report index disclosed by the Company

□ Yes √ No

IX. Items and Amount of Non-recurring Profits and Losses

√ Applicable □ Not applicable

Unit: Yuan

Item 2019 2018 2017 Notes

Gains and losses on disposal of non-current

assets (including the write off part of the

provision for impairment)

-77292030.26 -148409630.35 -65886612.10

Government subsidy attributable to profit and

loss of current period (except such

government subsidy closely related to the

company's normal business operation

meeting the regulation of national policy and

enjoyed constantly in certain quota or

quantity according to a certain standard)

83914522.47 86085297.03 39086900.00

Profit or loss from investment or

assets entrusted to others 605795.19 5041397.26

Gains and losses of debt restructuring 50640.00 4725936.17

Net profit of loss of the current period from

beginning of the period to the combination

date of subsidiaries generated from business

combination under common control

24668.65

Other non-operating income and expenses

other than above 779757.58 771191.90 14538002.49

Other profit and loss items that meet the

definition of non-recurring gains and losses 2084.65

Less: impact of income tax 1818703.48 22141.38 162375.42

impact of minority equity (after tax) 123911.88 38018.98 -107840.83

Total 6118154.27 -56571904.52 -7565639.38 --

Explanation for defining non-recurring gains and losses items according to the "Public Offering of Securities Information Disclosure

Explanatory Notice No. 1 – Non-Recurring Gains and Losses" and reasons for defining non-recurring gains and losses items listed in

the document as recurring items.

□ Applicable√ Not applicable

There exists no situation of defining non-recurring gains and losses items listed in the document as recurring items.

III. Summary of Company Business

I. The Company's main business during the reporting period

(1) During the reporting period the Company's main business activities include steel smelting rolling processing power generation

coal chemical industry special steel profiles railways import and export trade scientific research and product sales. The introduction

of world advanced equipment technology has enabled the implementation of equipment upgrades for the steel industry. The Company

has built a fine steel base formed more than 60 varieties more than 7500 series of product specifications high value-added and high-

tech product ratio reached more than 80% automotive surface panels household appliances oil pipeline steel container board

Shipboard and other leading products are widely used in automobiles home appliances petrochemicals aerospace machinery

manufacturing energy transportation construction and decoration and metal products and are exported to more than 60 countries and

regions.

During the reporting period the main performance drivers were: implemented contractual management improved the incentive and

restraint mechanism of the close connection of "operators and managers" the linkage of results responsibilities and rights and

promoted the integration of performance evaluation with the leadership team the appointment and removal of leading cadres rewards

and punishments. The organization signed 18 certificates of responsibility tracked the completion of each unit on a monthly basis and

formed a monthly notification system which had a milestone significance in the performance evaluation and cadre management of the

Company. A new round of large-scale technological transformation represented by key projects such as the new No. 5 blast furnace

and CCPP green and efficient power generation was implemented. At present the project of the transformation of the special steel plate

rolling mill and the energy-saving and environmental protection transformation project of the No. 1 and No. 6 converters of the

Company have been successfully completed and put into production. Strengthened capital management operations completed cash

acquisition of related party assets and incorporated 2300mm and 1780mm hot-rolled production line equipment assets into the

Company.

No significant change occurred during the reporting period.

(2) During the reporting period there were many instable factors in the domestic steel market. Although the country continued to

increase supply-side structural reforms and infrastructure construction the continuous release of steel production capacity and the

reasonable adjustment of upstream and downstream profits as well as the formation of market backflow caused by China-US trade

frictions steel prices are affected to certain extent. However from the perspective of the country as a whole domestic steel production

capacity has basically become reasonable demand and supply has maintained balance and the steel industry has also maintained a

stable and good development trend. The company adheres to the supply-side structural reform as the main line implements high-quality

development requirements and consistently implements the new development concepts “four determinants” and “three advancements”.The company has achieved steady economic development continuous improvement of its comprehensive competitiveness and

continuous consolidation of its industry position.II. Major Changes in Main Assets

1. Major Changes in Main Assets

Main assets Notes to major changes

Construction in progress The balance as of 31 December 2019 is RMB 1833853.6 thousand and it has increased by 119.2% which is mainly because projects will be constructed during the next year.

Notes receivables

The balance as of 31 December 2019 is RMB 0 and it has decreased RMB 3580145.8

thousand compared to the beginning balance which is mainly caused by the adjustment

of notes receivable into the accounts receivable financing applying the financial

instruments standards during the current period.

Accounts receivables

The balance as of 31 December 2019 is RMB 235696.3 thousand and it has decreased

by 63.14% compared with the beginning balance which is mainly caused by the

adjustment of part of the accounts receivables into the accounts receivable financing

applying the financial instruments standards during the current period.Other non-current assets The balance as of 31 December 2019 is RMB 708502.6 thousand and it has increased by

828.06% compared with the beginning balance which mainly due to the increase in the

rental deposit paid to Liaoning Hengyi Financial Leasing Co. Ltd. during the current

period.

2. Main Information of Overseas Assets

□ Applicable √ Not applicable

III. Analysis on Core Competitiveness

The company adheres to the development model of innovation-driven and “quality plus service”. With the strategic goal of building a

highly competitive international high-quality plate base domestic first-class special steel base and comprehensive service providers it

plays a strategic leading role focusing on improving quality and efficiency. In terms of variety upgrading technological innovation

green and intelligent manufacturing it innovates business management ideas enhances the company's core competitiveness and

promotes the development of high-quality green and intelligent enterprises.

1. Manufacturing capacity

The company innovates management ideas strengthens professional management and control of the entire chain and continuously

improves corporate management efficiency. All departments and units interact with each other continue to implement the concept of

production priority adhere to the iron system as the core focus on the process of iron and steel. The production line and resources of

the production process and the principle of rationally matches the production process of steel to make the production process and

operation continuous standardization and refinement strive to maximize the quality efficiency and production scale and promote the

production chain to high-end manufacturing.

2. Equipment transformation and upgrading

In 2019 the Company invested fixed asset of 5.7 billion yuan. A new round of large-scale technological transformation represented by

key projects such as the new No. 5 blast furnace and CCPP green and efficient power generation was implemented.

At present the special steel rolling mill renovation project the steelmaking furnace No.1 and No.6 converter energy-saving and

environmental protection transformation projects have been successfully completed and put into production. The No. 5 blast furnace

energy-saving and environmental protection transformation project has completed 60% and is scheduled to be put into operation at the

end of September 2020. The upgrading project will be completed and put into operation in 2021.

3. New product development capabilities

In 2019 the Company successfully developed 41 new products. Among them the high-strength martensitic steel MS1180 for rolling

broke the production line capacity limit indicating that Bengang's automotive cold-formed products already have a supply capacity of

1200 MPa. The Company successfully developed quenching steel for cold forming high-strength bullet-proof steel and car wheel

bearing steel which filled the company's product gap. The Chinese Society of Metals held an expert review of scientific and

technological achievements in Beijing suggested that the two scientific and technological achievements completed by the company

named “R&D of ultra-high-strength series hot stamping steel” and “Independent R&D and technology integration of electro-galvanizedproducts” reached advanced world standard. The ultra-high strength 2000MPa hot-formed steel technology has broken the strength

limit of the hot-formed steel with an elongation of not less than 6% and had excellent strong plastic matching; 6mm thick specifications

of 1500MPa-grade hot-formed steel used in chassis torque Beam parts have achieved a technological breakthrough in the application

of automobile chassis structural parts and met the requirements for lightweight design of the whole vehicle; the width of 1500MPa-

2000MPa ultra-high-strength series of hot-formed steel products can reach 1800mm formed the widest domestic thermoforming

Production capacity of steel products.

4. Technical innovation capability

Benxi Steel and Shenyang National Research Center for Materials Science signed an agreement to build a joint R&D center to build

an “industry-university-research-use” R&D platform and actively integrate into the national technological innovation system.The construction of Bengang Shenyang Research Institute commenced the land acquisition process and declared to be included in the

national and provincial “14th Five-Year Plan” major engineering projects. And joined the executive director unit of the Corrosion

Resistant Steel Technology Innovation Alliance and the Journal of Iron and Steel Research and became a member unit of the

Automotive Lightweight Innovation Strategic Alliance. In 2019 146 patents were accepted by the State Intellectual Property Office

had an increase of 11.5% compared with last year and 93 patents of them were authorized by the State Intellectual Property Office

had an increase of 260%. The company successfully joined the China Intellectual Property Development Alliance.

5. Green development capacity

The company has taken social responsibilities and relied on professional planning and research institutions to prepare environmental

protection improvement plans and annual implementation plans by combining the steel industry and local ultra-low emission policy

requirements. Through all-round green improvement such as clean production level three waste management and environmental

protection management the company can achieve "ultra-low emissions" in all directions in 2025 realize the communalization of

environmental quality promote the integration of industry and city and build the company into a harmonious development with the

city "Ecological Steel Factory". At present 2 sets of coke oven flue gas desulfurization and denitrification devices have been invested

and installed. The surplus gas CCPP power generation project is planned to be completed and put into operation in May 2021. The

new mixing yard and the fully enclosed project of the yard are also under planning and design. It will be completed and put into

operation in 2024.

6. Intelligent manufacturing capabilities

The Company has steadily promoted the construction of projects related to the integration of the two industries and the intelligent

factory. And invested RMB 110 million for the intelligent transformation of manufacturing management ERP systems and other

fields. It is planned to increase investment in informatization and intelligent manufacturing in 2020-2022 keep up with the pace of

enterprise development in the era of big data and achieve high-quality development.

7. Marketing competence

The Company adheres to the benefit-oriented optimizes the variety structure achieves a steady increase in the output of leading

products and significantly enhances the core competitiveness of products. The Company developed 32 new customers 45 new steel

types and achieved the target of 100% production-sales ratio by increasing market development efforts and matching resources

reasonably. Products are sold to more than 30 countries and 1 million tons along the “Belt and Road” accounting for 42% of total

exports. During 2019 the Company completed 70 brand certifications for cold-rolled galvanized pickled special steel and other

products with an increase of 25% over last year covering users such as automobile panels home appliance panels and special steel.Part of the company's automotive sheet products have been included in the Mercedes-Benz BQF (Global Procurement) list. The key

certification work of BMW Mercedes-Benz Renault etc. has achieved periodic results. The Company completed the testing of SGS

ELV and Reach products.

8. Brand Building

The Company has built a symbiotic and shared quality management model of "supporting a better life with steel power" attached

great importance to the construction of corporate culture actively expanded brand influence made great efforts to fulfill social

responsibilities and enhance the social image of the enterprise successfully won the 2019 Liaoning Provincial Quality Bonus Award

and became the only iron and steel enterprise to win this honor.

IV. Management Discussion and Analysis

I. General

During the reporting period the company adhered to Xi Jinping's new era of socialism with Chinese characteristics as the

guide in-depth study and implementation of the spirit of the important speech by Present Xi during the inspection tour in

Liaoning and in the in-depth promotion of the Northeast Revitalization Symposium. The Company adheres to the supply-

side structural reform as the main line persists in the general keynote of steady progress firmly establishes and practices

new concepts of development. It implements high-quality development requirements achieves stable growth of major

economic indicators. The Company produced 9.7272 million tons of pig iron in the whole year which increased by

14.61% 9.9639 million tons of crude steel which increased by 11.2% 12.22674 million tons of hot-rolled plate which

increased by 6.77% 5.6263 million tons of cold-rolled sheet which increased by 0.37% and 0.4867 million tons of special

steel which decreased by 28.44% compared to last period. The company did not have any major personal accidents major

fire accidents or major equipment accidents throughout the year. Looking back at the past year's production and operation

process we mainly completed the following work:

First management innovation. The Company implements contract management improved the incentive and restraint

mechanism of the close connection of "operators and managers" the linkage of results responsibilities and rights and

promoted the integration of performance evaluation with the leadership team the appointment and removal of leading

cadres rewards and punishments. The organization signed 18 certificates of responsibility tracked the completion of each

unit on a monthly basis and formed a monthly notification system.

Besides the Company implement accountability and accountability set up a supervision team to carry out supervision

and management continue to optimize and streamline the organization in accordance with the principles of compressing

management levels and integrate similar businesses to strengthen process optimization increase system supervision and

implementation inspection. And strengthen risk management internal control carry out in-depth risk identification

assessment and risk knowledge training to strengthen informatization construction to provide informatization support for

refined management. Strengthen capital management operations complete cash acquisition of related party assets and

incorporate 2300mm and 1780mm hot rolling production line equipment assets into the company.Second technology innovation. The Company adheres to the design concept of light weight and green environmental

protection aims at stable quality reasonable cost high added value and strong market competitiveness closely combines

market demand and future technical development direction considers the characteristics of its own production line

develops marketable New product. There were 41 new product brands developed throughout the year and some

automotive sheet products were included in Mercedes-Benz's global procurement list. And promote the industrial

development of hot-formed steel products achieve full coverage of products from 1300 MPa to 2000 MPa. They

organized the completion of 70 brand certifications for cold rolling galvanizing pickling special steel and other products.The Company cooperated and communicated with Beijing University of Science and Technology China Iron and Steel

Research Institute Institute of Metals of Chinese Academy of Sciences Shanghai University etc. through multi-levels

multi-channels and multi-forms. The cooperation and communication have accelerated the transformation of scientific

and technological achievements into real productivity. Moreover a total of 146 patents were accepted by the State

Intellectual Property Office with 113 new authorized patents. They successfully joined the China Intellectual Property

Development Alliance successfully passed the annual assessment of "National Intellectual Property Advantage

Enterprise" and "Liaoning Province Intellectual Property Advantage Enterprise"

Third marketing and purchasing. The company adheres to the benefit-oriented optimizes the variety structure reasonably

matches resources increases market development efforts and achieves the target of 100% production and sales rate. The

development and certification of OEMs has been actively promoted sales channels are expanded continuously orders for

auto plates are gained by efforts. The comprehensive implementation of the import materials under the plate item is

guaranteed by the corporate finance company guarantee letter and the tax collection business which improves the

efficiency of customs clearance. By lowering anthracite coal prices introducing high-sulfur coal cost reduction

controlling land and mineral resources to suppress prices and implementing benchmarking potentials to reduce prices

and cost etc. measures to reduce procurement costs. We will continue to implement special cost reductions such as

resource development variety substitution and opportunity selection. And fully organize the development and

introduction of high-quality suppliers and constantly improve the supplier structure to carry out procurement

benchmarking work with procurement prices and procurement costs as the core organize and determine benchmarking

projects.

Fourth production and operation. The Company fully promotes the work of increasing production reduces consumption

and increasing efficiency and the level of production and operation of enterprises has been continuously improved. The

production organization has been further optimized give full play to the role of dispatching and coordination

scientifically and efficiently organize the overall balance of various productions and solidly and steadily advance the

work of reducing costs and increasing efficiency. And adhere to the implementation of the cost management and control

system and the daily clearing and daily settlement mechanism carry out benchmarking and process cost analysis in an

all-round manner to realize the dynamic control of key indicators and cost operation.

Fifth party building. The Company seriously implements the deployment of the Party Central Committee the Provincial

Party Committee and the company's party committee comprehensively and deeply carry out the education of "Remain

true to our original aspiration and keep our mission firmly in mind". And revise the system of party building work carry

out the activities of "big learning big inspection big standardization big promotion" to strengthen the education

management of party members promote the institutionalization of the normalization of the " studies on the theoretical

and practical issues of party building" learning and education standardize the basic party organizations and continue to

standardize Promote.Sixth people's livelihood and social responsibility. The Company reconstructs of the three-dimensional parking lot of

No.4 door with a total construction area of 20400 square meters solves the difficulty of parking for employees. The

foundation of safety management has been continuously consolidated and the safety production responsibility system

has been strictly implemented to achieve full coverage of the safety production responsibility system. In order to innovate

safety training methods establish a safety training base strengthen production safety supervision and carry out special

inspections on building construction and hazardous media.II. Main Business Analysis

1. General

For relevant information please refer to “Management Discussion and Analysis 1. General”.

2. Income and Cost

(1) Breakdown of Operating Income

Unit: Yuan

2019 2018 Change over last

year Amount Proportion Amount Proportion

Total operating income 52741353582.28 100% 50181869721.54 100% 5.10%

By industries

Industry 52741353582.28 100.00% 50181869721.54 100.00% 5.10%

By products

Steel plate 46805252792.90 88.74% 46228334211.43 92.12% 1.24%

Others 5936100789.38 11.26% 3953535510.11 7.88% 52.25%

By regions

Northeast 20024243641.60 37.97% 15200555630.64 30.29% 32.26%

North China 5084223402.71 9.64% 5695230806.71 11.35% -10.73%

East China 20568857942.71 39.00% 17511020155.51 34.90% 17.46%

Northwest 57451092.38 0.11% 68730984.27 0.14% -16.41%

Southwest 232028336.48 0.44% 179439784.55 0.36% 29.31%

Central south 26564062.51 0.05% 29348279.57 0.06% -9.49%

Export 6747985103.89 12.79% 11497544080.29 22.90% -41.31%

(2) Industry Product and Regions Accounting for the Company’s Operating Income or Profit over 10%

√ Applicable □ Not applicable

Unit: Yuan

Operating Income Operating profit Gross margin

Operating income

change over last

year

Operating profit

change over last

year

Gross margin

change over last

year

By industries

Industry 52741353582.28 49211414645.62 6.69% 5.10% 8.77% -3.15%

By products

Steel plate 46805252792.90 43900514006.74 6.21% 1.25% 4.66% -3.05%

Others 5936100789.38 5310900638.88 10.53% 50.15% 61.10% -6.09%

By regions

Northeast 20024243641.60 18582038944.70 7.20% 31.73% 34.28% -1.76%

North China 5084223402.71 4757714575.79 6.42% -10.73% -7.74% -3.03%

East China 20568857942.71 19203256113.50 6.64% 17.46% 21.91% -3.40%

Northwest 57451092.38 54150705.94 5.74% -16.41% -14.69% -1.90%

Southwest 232028336.48 217118195.58 6.43% 29.31% 33.81% -3.15%

Central south 26564062.51 24831580.92 6.52% -9.49% -6.46% -3.03%

Export 6747985103.89 6372304529.20 5.57% -41.31% -37.80% -5.33%

Operating data of recent one year according to adjusted statistics caliber at the year-end in the case that the Company's main business

statistics caliber has changed during the reporting period

□ Applicable √Not applicable

(3) Whether the Company’s Physical Sales Income Exceeded Service Income

√ Yes □ No

Industry classification Item Unit 2019 2018 Change over last year

Steel rolling processing

industry

Sales ton 12936378.68 11921203.14 8.52%

Production ton 12753498.73 11778657.64 8.28%

Inventory ton 461834.13 644714.08 -28.37%

The main reasons that the relevant data changed more than 30%

□ Applicable √ Not applicable

(4) Performance of Significant Sales Contract Signed-up in this Reporting Period

□ Applicable √ Not applicable

(5) Breakdown of Operating Cost

Industry classification

Unit: Yuan

Industry

classification Item

2019 2018 Change over last

year Amount Proportion Amount Proportion

Steel rolling

processing industry Raw material 24287695988.38 49.35% 21947301201.20 48.51% -48.51%

Steel rolling

processing industry

Supplementary

materials 2244278919.58 4.56% 2042667624.99 4.51% -4.51%

Steel rolling

processing industry

Spare parts and

tools 792470544.15 1.61% 736234636.78 1.63% -1.63%

Steel rolling

processing industry Fuel 13563168678.04 27.56% 12532214109.19 27.70% -27.70%

Steel rolling

processing industry Energy 2886572220.88 5.87% 2851020001.46 6.30% -6.30%

Steel rolling

processing industry

Salary and

benefits 2132408812.44 4.33% 1995005132.35 4.41% -4.41%

Steel rolling

processing industry Depreciation 2474423868.41 5.03% 2346173478.53 5.19% -5.19%

Steel rolling

processing industry Others 830395613.74 1.69% 793119019.81 1.75% -1.75%

Steel rolling

processing industry Total 49211414645.62 100.00% 45243735204.31 100.00% -100.00%

(6) Whether Changes Occurred in Consolidation Scope in the Reporting Period

□ Yes √No

(7) Relevant Information of Significant Changes or Adjustment of the Business Product or Service in the

Reporting Period

□ Applicable √ Not applicable

(8) Information of Main Customers and Main Suppliers

Information of the Company’s main customers

Total sales amount of the top five customers (Yuan) 11215010475.74 22456322906.01

Total sales amount of the top five customers accounted for the

proportion of total annual sales 21.26% 45.63%

The proportion of the total sales of the related parties in the

top five customers 9.92% 34.30%

Information of the top 5 customers

No Name Amount (Yuan) Proportion

1 Benxi Beiying Steel & Iron (Group) Co. Ltd. 5231032903.96 9.92%

2 Xiamen Jian Fa Metal Co. Ltd. 1621532578.32 3.07%

3 Shanghai Min Xing Da International Trade Co. Ltd. 1520825639.71 2.88%

4 Ningbo AUX Trade Co. Ltd. 1441869474.34 2.73%

5 Zhong Bing (Shanghai) Co. Ltd. 1399749879.41 2.65%

Total -- 11215010475.74 21.26%

Other information of principal customers

□ Applicable √ Not applicable

Information of the Company’s main suppliers

Total purchase amount of the top five suppliers (Yuan) 22456322906.01 22456322906.01

Total purchase amount of the top five suppliers accounted for

the proportion of total purchase 45.63% 45.63%

The proportion of the total purchase of the related parties in

the top five suppliers 34.30% 34.30%

Information of the top 5 suppliers

No. Name Amount (Yuan) Proportion

1 Benxi Beiying Steel & Iron (Group) Co. Ltd. 12194115817.50 24.78%

2 Benxi Steel & Iron (Group) Mining Co. Ltd. 4686937254.45 9.52%

3 Heilongjiang Dragon Coal Group Co. Ltd. 2383245434.22 4.84%

4 Liaoning Electric Power Co. Ltd. Benxi Electric Power Supply Company 2177544074.59 4.42%

5 Shenyang Coking Coal Co. Ltd. Sales Branch 1014480325.25 2.06%

Total -- 22456322906.01 45.63%

Other information of principal suppliers

□ Applicable √ Not applicable

3. Expenses

Unit: Yuan

2019 2018 Change over last year Notes to significant change

Selling and distribution expenses 1096688903.70 1135004470.47 -3.38%

General and administrative expenses 831945841.56 916341137.85 -9.21%

Financial expenses 681842689.23 1376355160.46 -50.46%

Loss of exchange

decreases and interest

income increases during

the current period

Research and development expenses 30780463.74 6399884.30 380.95%

Increase in the collection

of research and

development expenses in

this period.

4. Research and Development Input

√ Applicable □ Not applicable

In order to comprehensively enhance the level of technological innovation and ability to create efficiency and increase profits

strengthen variety adjustment and market development improve product quality management promote low-cost and green

manufacturing technologies 50 companies and 98 self-managed projects were directly managed by technology around variety quality

and cost in 2019. All projects were successfully carried out and completed over 76% on schedule. 41 new products were developed

throughout the year and costs were reduced by more than 100 million yuan through process optimization. R & D projects such as new

product development technological progress and low-cost control technology not only create rich profits for the company but also

consolidate the company’s good corporate influence on the market.Information of research and development input by the company

2019 2018 Change over last year

Number of Research and

Development personnel 1632 1712 -4.67%

Proportion of number of

Research and Development

personnel

9.18% 9.51% -0.33%

Amount of Research and

Development Investment (In

RMB)

1287080000.00 1495775000.00 -13.95%

Proportion of Research and

Development investment to

operating income

2.44% 2.98% -0.54%

Amount of capitalized Research

and Development investment 0.00 0.00 0.00%

Proportion of capitalized

Research and Development

0.00% 0.00% 0.00%

investment accounted to total

Research and Development

investment

Illustrations of the prominent change in proportion of research and development input occupying the operating income over same

period last year

□ Applicable √ Not applicable

Illustrations of significant change in the research and development input’s capitalization rate and its reasonableness

□ Applicable √ Not applicable

5. Cash Flow

Unit: Yuan

Item 2019 2018 Change over last year

Subtotal of cash inflows from

operating activities 48140957956.69 42888958869.76 12.25%

Subtotal of cash outflows from

operating activities 41163133915.53 39269021027.83 4.82%

Net cash flows from operating

activities 6977824041.16 3619937841.93 92.76%

Subtotal of cash inflows from

investing activities 53984827.07 684483213.49 -92.11%

Subtotal of cash outflows paid

for investing activities 4598859687.86 761988848.56 503.53%

Net cash flows from investing

activities -4544874860.79 -77505635.07 5763.93%

Subtotal of cash inflows from

financing activities 17484678971.97 35061062441.77 -50.13%

Subtotal of cash outflows from

financing activities 18304173598.95 39211589467.82 -53.32%

Net cash flows from financing

activities -819494626.98 -4150527026.05 -80.26%

Net increase in cash and cash

equivalents 1688866366.61 -565028156.96 -398.90%

Illustrations of key factors of significant changes over same period last year

√ Applicable □Not applicable

Notes:

(1) Net cash flows generated from operating activities increased 92.76% compared to the previous period mainly

because the increase of cash received from sales of goods is more than the increase of cash paid for goods.

(2) Subtotal of cash inflows from investing activities decreased 92.11% compared to the previous period mainly because

the decrease of cash withdrawn from purchase of financial products.

(3) Subtotal of cash outflows from investing activities increased 503.53% compared to the previous period mainly

because the increase of cash paid for purchase of production line 2300 and equipment of production line 1780.

(4) Net cash flows from investing activities increased 5763.93% compared to the previous year mainly because the

increase of cash paid for purchase of production line 2300 and equipment of production line 1780.

(5) Subtotal of cash inflows from financing activities decreased 50.13% compared to the previous period mainly because

the decrease of cash received from financing.

(6) Subtotal of cash outflows from financing activities decreased 53.32% compared to the previous period mainly

because the decrease of cash repayment.

(7) Net cash flows from financing activities decreased 80.26% compared to the previous period mainly because the

decrease in cash paid for debt repayment in the current period.Illustrations of significant difference between cash flow from operating activities and net profit during the reporting period

□ Applicable √Not applicable

III. Analysis of Non-core Business

√Applicable □ Not applicable

Unit: Yuan

Amount Proportion in total profit Explanation of cause Whether sustainable

Investment income 1058377.90 0.18% Due to external equity investment No

Impairment of assets -43256982.72 -7.51% Due to provision of impairment of finished products No

Non-operating income 10306462.87 1.79% Due to income raised from scrapping of non-current assets No

Non-operating expenses 90209742.22 15.67% Due to scrapping of assets in current period No

IV. Assets and Liabilities

1. Significant Change of Assets Components

Adjustment to the beginning balance of the current period due to the first adoption of new financial instruments standards new revenue

standards or new leasing standards since 2019

√ Applicable □ Not applicable

Unit: Yuan

Ending balance of 2019 Beginning balance of 2019

Proportion

change

Notes to

significant

change Amount

Proportion in

the total assets

(%)

Amount

Proportion in

the total assets

(%)

Cash at bank and on

hand 18415844397.77 30.32% 16567471755.77 27.78% 2.54%

Accounts receivable 235696265.66 0.39% 639482481.45 1.07% -0.68%

Inventories 7700397685.61 12.68% 10677747112.40 17.91% -5.23%

Long-term equity

investment 2642998.70 0.00% 2455681.55 0.00% 0.00%

Fixed assets 26123375492.40 43.01% 23924504539.97 40.12% 2.89%

Construction in

process 1833853572.58 3.02% 836594457.82 1.40% 1.62%

Short-term loans 13151478000.00 21.66% 11938490375.85 20.02% 1.64%

Long-term loans 4849675910.73 7.99% 7083640094.16 11.88% -3.89%

2. Assets and Liabilities Measured at Fair Value

√ Applicable □ Not applicable

Unit: yuan

Item Beginning balance

Profit and

loss from

changes in

fair value in

the current

period

Accumulated

fair value

changes

recognised in

equity

Impairment

accrued in the

current period

Purchase

amount

during the

current period

Sales amount

during the

current period

Other

changes

Ending

balance

Financial

assets

3.Other debt

investments

24295424

61.88

24295424

61.88

4.Other equity 10418248 10418248

instrument

investments

29.00 29.00

Subtotal of

financial

assets

3471367290.88

34713672

90.88

Total 0.00 3471367290.88

34713672

90.88

Financial

liabilities 0.00 0.00

3. Restricted Assets by the End of the Period

Items Ending balance Reason

Cash at bank and on hand 4974429409.19 Deposit for notes and L/C

Accounts receivable financing 373576250.73 Pledged for acceptance bill

Other equity instrument investments 1037735849.00 Pledged for loans

Total 6385741508.92

V. Investment

1. General

□ Applicable √ Not applicable

2. Acquiring Significant Equity Investment in the Reporting Period

□ Applicable √ Not applicable

3. Undergoing Significant Non-equity Investment in the Reporting Period

□ Applicable √ Not applicable

4. Investment of Financial Assets

(1) Investment in Securities

□ Applicable √ Not applicable

There was no investment in securities during the reporting period.

(2) Investment in Derivatives

□Applicable √ Not applicable

There was no investment in derivatives during the reporting period.

5. Use of Raised Funds

√ Applicable □ Not applicable

(1) Use of Raised Funds

√Applicable □ Not applicable

Unit: 10 thousand yuan

Year Source of funding Total amount

Used

amount

during the

current

period

Accumulat

ively used

amount

The

total

amount

of funds

raised

for

changin

g

purpose

s during

the

reportin

g period

Accumulat

ed amount

of funds

raised for

changing

purposes

Proportion

Total

amount of

funds

raised

have not

been used

Purpose of

fund raised

have not

been used

The

amount of

funds

raised for

more than

two years

of idle

2018 Private placement 3965799988.19 13006851

318368409

4.45 0 0 0 Deposit 0

Total -- 3965799988.19 13006851 3183684094.45 0 0 0.00% 0 -- 0

Description of the overall use of raised funds

1. Changes in the implementation location implementation body and implementation of the fundraising investment project: There

is no change in the company's investment projects in 2019.

2. Initial investment and replacement of fund raising projects: The 14th meeting of the 7th Board of Directors and the 10th meeting

of the 7th Board of Supervisors reviewed and approved the proposal on self-raised funds for the use of raised funds to replace pre-

investment funds. Before the funds raised received in order to ensure the smooth implementation of the fundraising project the

company built the project with self-raised funds. As of February 28 2018 the amount of pre-investment of self-raised funds with

raised funds was 1822749211.07 yuan including 1484133089.39 yuan for cold-rolled high-strength steel renovation project and

338616121.68 yuan for hot-dip galvanizing production line of three cold rolling mills. Details are as follows:

(1) The replacement amount of the cold-rolled high-strength steel reconstruction engineering company with self-raised funds to raise

funds for the initial investment is RMB 1484133089.39 mainly for equipment purchase and construction etc.

(2) The replacement amount of the project funded for the Third Cold Rolling Mills Hot-Dip Galvanizing Production Line with self-

raised funds was RMB 338616121.68 mainly for equipment purchase and construction.The company replaced the funds used in the construction of the fundraising project with the self-raised funds to replace the funds

raised. The initial investment and replacement of the above-mentioned fundraising projects has been verified by BDO China Shu LunPan Certified Public Accountants LLP. Please refer to PCPAR [2018] No. ZB10101 “Verification report on the self-raised fundinvested in the raised funds investment project of Bengang Steel Plates Co. Ltd”.

(3) Temporary replenishment of circulating funds with idle raised funds:

In 2018 the Company used 530000000.00 yuan of idle raised funds to temporarily supplement working capital. The period of use

shall not exceed 12 months from the date of approval by the board of directors (March 13 2018). As of March 11 2019 the Company

has returned all the above-mentioned idle raised funds for temporary supplementary liquidity of 530000000 yuan to the Company's

special account for raised funds.

During the current reporting period according to the progress of the Company's fund-raising investment project construction and the

fund-raising plan part of the funds raised in this issuance is temporarily idle. According to the regulations of the "Procedures for the

Management of Funds Raised by Listed Companies of the Shenzhen Stock Exchange" in accordance with the principle of maximizing

the interests of shareholders under the premise of ensuring the fund demand for investment projects and the investment projects for

raising funds. The efficiency of fundraising will further reduce the company's financial costs reduce financial expenses and protect

the interests of investors. The Company uses 742000000.00 yuan as raised funds will temporarily supplement the working capital

and the term of use will not exceed 12 months from the date of approval by the board of directors. Based on the one-year loan

benchmark interest rate of 4.35% the supplementary working capital of 742000000.00 yuan will save financial expenses for

32277000.00 yuan.

The Company's usage of idle raised funds to temporarily supplement liquidity has been reviewed and approved at the 22th meeting

of the 7th Board of Directors and the 14th meeting of the 7th Board of Supervisors. The company's independent directors have issued

a clear statement. The consent opinion has fulfilled the necessary decision-making procedures. The use of idle raised funds to

temporarily supplement the liquidity matters will change the use of raised funds or affect the normal operation of the raised funds

investment plan. There is no damage to the interests of shareholder. Single replenishment of working capital is no more than 12

months. The Company has promised not to use idle raised funds for high-risk investment in line with the provisions of the relevantlaws regulations and regulatory documents including the “Regulatory Guidelines No. 2 of Listed Companies – RegulatoryRequirements for the Management and Use of Raised Funds of Listed Companies” “Stock Exchange Listing Rules of ShenzhenStock Exchange” and “Shenzhen Stock Exchange the Standard Operating Guidelines for Main Board Listed Companies”. Thesponsor institution agreed to use the idle raised funds to temporarily supplement the working capital and issued the “VerificationOpinions of Shenwan Hongyuan Securities Underwriting and Sponsoring Co. Ltd. on the temporary replenishment of working capital

by Bengang Steel Plate Co. Ltd. using idle raised funds”.

4. Usage of surplus funds raised: None.

5. Usage of over-raised funds: There is no over-raising of funds raised this time. Therefore during the reporting period the company

did not use over-raising funds.

6. The purpose and destination of the unused raised funds: As of December 31 2019 in addition to temporarily replenishing working

capital with idle raised funds of RMB 742000000.00 in accordance with the resolution of the board of directors the Company's

remaining raised funds temporarily saved in special account for fund raising.

7. Other use of raised funds: None.

(2) Fundraising commitments

√Applicable □ Not applicable

Unit: 10 thousand yuan

Committed investment

projects and over-

raised funds

Whether

the

project

has been

changed

(includin

g partial

changes)

Raised

funds

promised

total

investme

nt

Total

amount

of

investme

nt after

adjustme

nt (1)

Amount

invested

during

the

reporting

period

Accumul

ated

investme

nt

amount

as of the

end of the

period

(2)

Investme

nt

progress

as of the

end of the

period

(3)＝

(2)/(1)

Date of

the

project

reaches

the

expected

usable

status

Benefits

achieved

during

the

reporting

period

Whether

the

expected

benefits

are

achieved

Whether

the

project

feasibility

has

changed

significan

tly

Committed invested projects

High Strength Cold

Rolling Steel

Renovation Project

No 2265799988.19

226579998

8.19 13006851

178075797

2.77 78.59% 31.12.2017

-

11796483

4.28

No No

The Third Cold Rolling

Work Hot-Dip

Galvanizing

Production Line

Project

No 700000000 700000000 402926121.68 57.56% 31.12.2018

-

10660000

5.87

No No

Repayment of bank

loans No

100000000

0

100000000

0

100000000

0 100.00% Yes No

Subtotal -- 3965799988.19

39657999

88.19 13006851

31836840

94.45 -- --

-

22456484

0.15

-- --

Over-raised funds

Not applicable No

Total -- 3965799988.19

39657999

88.19 13006851

31836840

94.45 -- --

-

224564840.

15

-- --

Situation and cause of

failure to meet planned

progress or projected

earnings (disclosed by

project)

The main reason is that although the fundraising project has basically reached the condition of production

the high value-added varieties of the production line is not stable enough and the market's recognition of

new production line products has a certain delay.

Description of major

changes in project

feasibility

None.

Amount use and

progress of usage of

over-raised funds

Not applicable

Change in the

implementation

location of the raised

funds investment

project

Not applicable

Adjustment of

implementation

methods of fund-

raising investment

projects

Not applicable

The initial investment

and replacement of the

fundraising investment

project

Applicable

Refer to the Contents in Special Report III 4

Temporary

replenishment of

working capital with

idle raised funds

Applicable

Refer to the Contents in Special Report III 5

The amount and reason

for the rest of raised

fund in the project

implementation

Not applicable

Use and destination of

raised funds that have

not been used

None.Problems or other

situations in the use

and disclosure of raised

funds

None.

(3) The situation for raised funds change project

□ Applicable √ Not applicable

During the reporting period the company did not have any changes in the fundraising project.

VI. Significant Assets and Equity Sold in Reporting Period

1. Significant Assets Sold

□ Applicable √ Not applicable

There was no significant asset sold during the reporting period.

2. Substantial Equity Sold

□ Applicable √ Not applicable

VII. Analysis on Main Subsidiaries and Share Participating Companies

√ Applicable □ Not applicable

Main subsidiaries and the joint-stock companies influencing over 10% net profit of the Company

Unit: Yuan

Company Name Company type

Main

business

Registered

capital Total assets Net assets

Operating

income

Operating

profit Net Profit

Bengang

Puxiang Cool

Rolling Steel

Sheet Co. Ltd.Subsidiaries

Processing

and sales

of steel

1920000000.00 5815249242.86 1982530453.39 7379865156.54 25606949.96 19378253.07

Acquirement and disposal of subsidiaries during the reporting period

□ Applicable √ Not applicable

Illustration of main joint-stock companies

None

VIII. Structure Entities controlled by the Company

□ Applicable √ Not applicable

IX. Prospect for Future Development of the Company

1. The development trend of the industry and the market competition

2020 is a crucial year for fully implementing the spirit of the 19th National Congress of the Party forging ahead with

reforms accelerating development and achieving corporate planning goals. From the domestic economic situation

China's economic development is still in a period of important strategic opportunities and the basic trend of economic

stability and long-term improvement has not changed. Reform and opening up has further expanded technological

innovation has continuously given rise to industrial upgrading new and old domestic kinetic energy has been continuously

converted and the potential for consumption has been released laying a solid foundation for the sustained and stable

development of the economy. In 2020 China gradually entered the peak platform area of steel consumption but a large

number of capacity replacement projects have been put into operation steel output will continue to grow and the

contradiction of overcapacity will become a problem again; the export of downstream steel industry has suffered Large

impact by affected by Sino-US economic and trade frictions at the same time due to factors such as high price fluctuations

of iron ore scrap steel and coal coke higher environmental protection operating costs and other factors the steel industry

is facing an extremely severe development situation.

2. The Company’s development strategy

The overall work idea of 2020: comprehensively implement the spirit of the 19th National Congress of the Party and the

Second Third and Fourth Plenary Sessions of the 19th CPC National Congress implement the important speech of

General Secretary Xi Jinping during the inspection tour in Liaoning and in-depth promotion of the Northeast

Revitalization Symposium adhere to the supply-side structural reform as the main line implement the high-quality

development requirements and consistently implement the new development concept to strive to create a new situation

of high-quality development of enterprises.

3. Business plan

The overall goal of production and operation in 2020: strive to complete 10.42 million tons of pig iron 10.78 million tons

of crude steel 13.24 million tons of hot rolled sheet 5.97 million tons of cold rolled sheet 650000 tons of special steel

and achieve "three zeros" for safe production.In order to achieve the above objectives we will focus on the following aspects:

(1) Taking the reform of institutional mechanism as a breakthrough to further stimulate the vitality of enterprises.

(2) Continuously optimize resource allocation and create new impetus for innovation and development.

(3) In-depth implement benchmarking potential and comprehensively improve comprehensive competitive strength.

(4) Continue to promote process optimization and build a scientific and rational management and control system.

(5) Strengthen party building and ideological work and create a new situation for enterprise development.

4. Maintaining current business and completing the required capital arrangements of invested projects under

construction.The company will use its own funds and bank loans to meet the funds needed for production operations and technological

transformation.

5. Potential risks

（1）Operational risks:

At present the demand for steel for machinery automobiles home appliances and other related industries will slow down

and the contradiction between supply and demand is still outstanding which increases the competition. Countermeasures:

Maintain existing customers increase new product development increase investment in technology research and

development optimize product structure and actively explore new markets for new customer resources; comprehensively

improve management level improve management effectiveness reduce operating costs and increase profitability.

（2）Foreign trade risks:

International trade protectionism is on the rise anti-dumping cases are increasing trade friction and trade barriers are

becoming more and more serious. In addition the new epidemic Coronavirus situation has spread globally since 2020. If

the foreign epidemic situation cannot be controlled effectively in time it may cause turmoil in the international steel

market. The risk of the company's foreign trade export business has increased.

Countermeasures: strengthen international market analysis track changes in international trade policies reduce the impact

of trade policy mutations on the company's foreign trade; make a plan in trade friction response programs resolve the

adverse effects of trade friction and enhance the competitiveness of company products in the international market.

Conduct research on the market dynamics and industrial policies of the importing country and grasp the dynamic changes

in the importing country's market; find suitable partners foster superior products gradually increase the export ratio of

high-end products strengthen after-sales service and increase customer satisfaction. Companies will pay close attention

to the possible adverse effects of the Coronavirus subsequently increase investment in technology research and

development optimize product structure and actively expand domestic customer resources to offset possible adverse

effects in the foreign trade market.

（3）Environmental protection risks:

China's environmental protection policies and standards are becoming more and more perfect and strict and the

environmental protection supervision of enterprises is maintaining a strict trend. The tightening of environmental

protection standards will cause the company's production costs to increase. In addition the increased awareness of

environmental protection among the public has also increased the environmental protection requirements of the company

which has made the company face greater pressure on environmental protection.

Countermeasures: pay attention to various national environmental protection policies improve corporate environmental

standards to meet and properly exceed national standards; strengthen the company's self-supervision and inspection of

various sources of pollution strengthen the environmental awareness of all employees; accelerate the progress of the

construction of the identified environmental protection projects to ensure meet national environmental requirements.X. Researches visits and interviews received in this reporting period

1. Registration form of researches visits and interviews received in this reporting period

□ Applicable √ Not applicable

During the reporting period the Company did not receive any research communication interviews and other activities.

V. Important Events

I. Profit Distribution or Capital Reserve Conversion

Formulation implementation and adjustment of profit distribution policy of common shares especially

cash dividend policy during the reporting period

□ Applicable √ Not applicable

The profit distribution plan or proposal and the plan or proposal of conversion of the capital reserve into

share capital in recent three years (including the reporting period)

1. Profit distribution proposal of 2019

As audited by BDO China Shu Lun Pan Certified Public Accountants LLP. the net profit attributable to

the parent company of the year 2019 was RMB 555646971.4.After adding the retained profit of RMB

1945887269.82 at the beginning of the year and deducting the actual dividend of RMB 193768576.6

from the previous year the balance of undistributed profit was RMB 2307765664.62.Profits distribution plan of 2019:

Considering the uncertainty of the Coronavirus on the economy it is recommended that the company

will not make profit distribution or convert the provident fund into capital in 2019. This plan must be

submitted to the 2019 Annual General Meeting of Shareholders for consideration.

2. Profit distribution proposal of 2018

As audited by BDO China Shu Lun Pan Certified Public Accountants LLP. the net profit attributable to

the parent company of the year 2018 was RMB 1036493236.07. After adding the retained profit of

RMB 1103162610.35 at the beginning of the year and deducting the actual dividend of RMB

193768576.6 from the previous year the balance of undistributed profit was RMB 1945887269.82.

Profits distribution plan of 2018: The company will take existing share capital 3875371532 shares as

the base distributing cash dividends RMB 0.5 per 10 shares (including tax) to shareholders. The

company plans to distribute RMB193768576.60 dividends of ordinary shares and the remaining RMB

1752118693.22 will be carried over to next year’s undistributed profits.

3. Profit distribution plan of 2017

As audited by BDO China Shu Lun Pan Certified Public Accountants LLP. the net profit attributable to

the parent company of the year 2017 was RMB 1600110229.77. After adding the retained profit of

RMB -496947619.42 at the beginning of the year the balance of undistributed profit was RMB

1103162610.35.

Profits distribution plan of 2017: The company will take existing share capital 3875371532 shares as

the base distributing cash dividends RMB 0.5 per 10 shares (including tax) to shareholders. The

company plans to distribute RMB193768576.60 dividends of ordinary shares and the remaining RMB

909394033.75 will be carried over to next year’s undistributed profits.

Cash dividend distribution in recent three years

Unit: Yuan

Year

Cash

dividend

(Including

Tax)

Net profit

attributable to the

parent company in

the consolidated

financial statements

Ratio in net profit

attributable to the

parent company in

the consolidated

financial

statements

Amount of cash

dividends in

other ways

(repurchasing

shares)

Ratio of cash

dividend in other

way in net profit

attributable to the

parent company in

the consolidated

financial

statements

Amount of

cash

dividends in

other ways

Proportion

of cash

dividends in

other ways

2019 0.00 555646971.40 0.00% 0.00 0.00% 0.00 0.00%

2018

193768576

.60

1036493236.07 18.69% 0.00 0.00% 0.00 0.00%

2017

193768576

.60

1600110229.77 12.11% 0.00 0.00% 0.00 0.00%

Both the Company’s profit and the parent company’s retained earnings are positive however no proposal of cash

dividend distribution was proposed during the reporting period

□ Applicable √ Not applicable

II. Profit Distribution or Capital Reserve Conversion Proposal in the Reporting

Period

□ Applicable √ Not applicable

The company planed not to distribute cash dividend or bonus shares and not to convert capital reserve into share

capital.III. Performance of Committed Issues

1. The fulfilled commitments during the reporting period and 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

Commitments

Commitment

party

Type of

commitment

Contents

Commitment

time

Commitment

period

Performance

Commitment of shares

reform

Commitment made in the

acquisition report or the

equity change report

Commitment made during

asset restructuring

Commitment made during

initial public offering or

refinancing

Company

directors

senior

management

Other

commitment

According to the

relevant provisions of

the China Securities

Regulatory

Commission the

following commitments

can be made to the

company’s efforts to fill

the rewards: During the

tenure faithfully and

diligently perform duties

and safeguards the

legitimate rights and

interests of the company

and all shareholders

including but not limited

to: 1. Commitment not

to transfer benefits to

other units or

individuals without

compensation or unfair

conditions and not to

damage the company’s

interests in other ways;

2. Commitment to

constrain the behavior of

job consumption; 3.

Commitment to not use

company assets to

engage in investment

and consumption

activities unrelated to

the performance of their

duties; 4. Commitment

to the compensation

system established by

the board of directors or

the Remuneration and

Jan 26th 2016 Dec 9th 2019

Under normal

fulfillment

Appraisal Committee is

linked to the

implementation of the

company's measures to

cover the return; 5. If

the company launches

an equity incentive plan

in the future the terms

of the exercise of the

equity incentive plan are

linked to the

implementation of the

company's measures to

fill the rewards.Liaoning

Provincial

Transportation

Investment

Group Co.Ltd.Share sales

restriction

The allocated shares will

be locked for 12 months

from the date of the

listing of the new non-

public offering of

shares and will not be

transferred during this

period.Mar 5th 2018

12 months

from the date

of the listing

of the new

non-public

offering

Under normal

fulfillment

CCB Principal

Asset

Management

Co.Ltd.

Share sales

restriction

The allocated shares will

be locked for 12 months

from the date of the

listing of the new non-

public offering of

shares and will not be

transferred during this

period.Mar 5th 2018

12 months

from the date

of the listing

of the new

non-public

offering

Under normal

fulfillment

Beixin

Ruifeng Fund

Management

Co. Ltd.

Share sales

restriction

The allocated shares will

be locked for 12 months

from the date of the

listing of the new non-

public offering of

shares and will not be

transferred during this

period.Mar 5th 2018

12 months

from the date

of the listing

of the new

non-public

offering

Under normal

fulfillment

China Life

AMP Asset

Management

Co. Ltd.

Share sales

restriction

The allocated shares will

be locked for 12 months

from the date of the

listing of the new non-

public offering of

Mar 5th 2018

12 months

from the date

of the listing

of the new

non-public

Under normal

fulfillment

shares and will not be

transferred during this

period.offering

Company

directors

senior

management

Other

commitment

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

immediate return

measures: 1. I promise to

perform my duties

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

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

May 22 2019 Long term

Under normal

fulfillment

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

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

interfere with the

company's operation and

management activities

beyond its authority and

not to infringe on the

Company's interests.

Benxi Steel &

Iron (Group)

Co. Ltd. and

Bengang

Group Co.Ltd.Other

Commitment

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

July 242019 Long term

Under normal

fulfillment

in the same registration

place or in the same

office; The filing of

foreign economic and

trade operators taking

into account the need to

gradually improve the

qualification

certification of raw

material suppliers

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

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 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.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

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.

Benxi Steel &

Iron (Group)

Co. Ltd.

Other

Commitment

The Group's horizontal

competition with Benxi

Steel Plates and the

measures and

commitments to solve

the horizontal

competition The Group's

2300mm hot rolling mill

production line

(hereinafter referred to

as 'three hot rolling')

The main products

produced are ordinary

sheet low carbon steel

automobile The use of

steel container plates

oil pipeline steel etc.constitutes the same

industry competition

with Bengang Steel

Plates. In order to solve

the competition problem

in the same industry the

Group signed a lease

agreement with

Bengang Steel Plates

and Bengang Steel

Plates will be leased

using third hot rolling.

During the lease period

there is no horizontal

competition between the

Group and Bengang

Steel Plates. The Group

promises: The Group

will continue to permit

the use of third hot-

rolled steel sheets

July 242019 Long term

The company

has completed

the

acquisition of

the 2300mm

hot rolling

mill

production

line and the

industry

competition

problem has

been

completely

resolved.Other

commitments

continue to be

fulfilled

production line by lease

etc. and the Group will

never use it itself or use

the third hot-rolled steel

production line by any

means such as renting

selling permitting use

entrusted operation etc.used by any third party

other than Bengang

Steel Plates. Except for

the above situation

there is no other

industry competition

between the Group and

Bengang Steel Plates. 2.

Other commitments to

avoid inter-industry

competition 1. During

the period when the

Group is the controlling

shareholder of Bengang

Steel Plates in addition

to the matters listed in

Article 1 of this

Commitment Letter the

Group and other

enterprises controlled by

the Group other than

Bengang Steel Plates no

longer produce or

develop any products

that compete or may

compete with the

products produced by

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 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's

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 endeavour 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

Steel Plates and cannot

be changed or

withdrawn

Benxi Steel &

Iron (Group)

Other

Commitment

The horizontal

competition between the

July 242019 Long term

The company

has completed

Co. Ltd. Group and Bengang

Steel Plates and

measures and

commitments to avoid

horizontal competition

1. Benxi Iron and Steel

(Group) Co. Ltd.(hereinafter referred toas the “Benxi Iron andSteel Group”) a

subsidiary of the Group

issues issued the

"Commitment Letter on

Solving and Avoiding

Horizontal Competition"

to solve the existing

horizontal competition.The Group recognizes

the commitment letter

issued by Benxi Iron

and Steel Group and

will urge the Benxi Iron

and Steel Group to

fulfill the relevant

commitments. 2. The

products produced by

the 1780mm hot rolling

mill production line of

Benxi Beiying Iron and

Steel (Group) Co. Ltd.(hereinafter referred to

as 'Beiying Iron and

Steel Group') which is a

subsidiary of the Group

are the same as or

similar to the products

of Benxi Steel Sheet and

constitute Industry

competition. In order to

solve the competition in

the same industry

Beiying Iron and Steel

Group signed a lease

agreement with

the

acquisition of

the 1780mm

hot rolling

mill

production

line and the

industry

competition

problem has

been

completely

resolved.Other

commitments

continue to be

fulfilled

Bengang Steel Plates

and Bengang Steel

Plates leased a 1780mm

hot rolling mill

production line. During

the lease period there is

no horizontal

competition between the

Group and Bengang

Steel Plates. The Group

promises that it will

continue to permit the

use of the 1780mm hot

rolling mill production

line of Bengang Steel

Sheets by leasing. And it

will not used by any

third party other than

Bengang Steel Sheets.

In addition to the

aforementioned hot

rolling mill production

lines the products

produced by Beiying

Iron and Steel Group are

mainly wire rods rebars

and cast pipes. The main

products are

construction steels

while Bengang Steel

Platess mainly produce

household electrical

appliances and

automotive plates. The

product attributes of the

two Companies

Performance

specifications materials

and uses are

substantially different.

Except for the above

circumstances there is

no other industry

competition or potential

industry competition

between the Group and

Bengang Steel Plates. 2.

Other commitments to

avoid competition in the

industry 1. During the

period when the Group

is the indirect

controlling shareholder

of Bengang Steel Plates

in addition to the

matters listed in Article

1 of this Commitment

Letter the Group and

the companies

controlled by the Group

except Bengang Steel

Plates no longer produce

or develop any products

that compete or may

compete with the

products produced by

Bengang Plate and its

subsidiaries in China

and abroad. It may not

be a business that may

constitute competition

nor will it participate in

investing in any other

enterprise that competes

with or may compete

with the products or

businesses produced by

Bengang Plate 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 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's

operation and operation

the Group shall

immediately notify

Bengang Steel Plates of

the above commercial

opportunities. If an

affirmative answer is

made to take advantage

of the business

opportunity the Group

will endeavour to give

the business opportunity

to Bengang Steel Plates

on terms that are not

worse than those

provided to or 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 indirect

controlling shareholder

of Benxi Steel Plates

and cannot be changed

or withdrawn

Benxi Steel &

Iron (Group)

Co. Ltd. and

Bengang

Group Co.Ltd.Other

Commitment

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

as the "Group") as a

direct controlling

shareholder and an

indirect controlling

July 242019 Long term

Under normal

fulfillment

shareholder of Bengang

Steel Platess 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

Bengang Steel Plates

ensure the independence

of Bengang Steel Plates's

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

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

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

fulfilled on time or not

Yes

2. The Company made illustrations that there are assets or projects which meet the original

profit forecast and the reasons when there are assets or projects profit forecast of the

Company and the reporting period is still in the forecast period

□ Applicable √ Not applicable

IV. Illustrations of Non-Operating Occupation of Funds by the Controlling

Shareholder and Related Parties

□ Applicable √ Not applicable

There was no non-operating occupation of funds by the controlling shareholder and related parties

V. Illustrations of the Supervisory Committee and Independent Directors (If

Applicable) on the Qualified Audit Report Issued by the CPAs

□ Applicable √ Not applicable

VI. Illustrations of Changes in the Accounting Policy Accounting Estimate and

Measurement Methods as Compared with the Financial Report of Last Year

√ Applicable □ Not applicable

(1) Implementation of “Notice of the Ministry of Finance on the revision of the format forthe issuance of the financial statements of the general enterprise for the year 2019” and“Notice on the revision of the format for the issuance of the consolidated financialstatements for the year 2019”Ministry of Finance issued “Notice of the Ministry of Finance on the revision of the format for theissuance of the financial statements of the general enterprise for the year 2019” (Cai-Kuai 2019 No.6)

on 30 April 2019and “Notice on the revision of the format for the issuance of the consolidatedfinancial statements for the year 2019” (Cai-Kuai 2019 No.16) which revised the format of financial

statement for the general enterprise.The following accounting policy changes have been approved by the company's board of directors and

board of supervisors.The major impact of the implementation of the above regulations are as follows:

(2) Implementation of “Accounting Standards for Business Enterprises No.22-Recognitionand Measurement of Financial Instruments” “Accounting Standards for Business

Enterprises No.23-Transfer of Financial Assets” “Accounting Standards for Business

Enterprises No.24-Hedging Accounting” and “Accounting Standards for Business

Enterprises No.37 - Presentation of Financial Instruments” (2017 revision).Ministry of Finance revised “Accounting Standards for Business Enterprises No.22-Recognitionand Measurement of Financial Instruments” “Accounting Standards for

Business Enterprises No.23-Transfer of Financial Assets” “Accounting Standards for

Business Enterprises No.24-Hedging Accounting” and “Accounting Standards for

Business Enterprises No.37 - Presentation of Financial Instruments” in 2017 which

stipulates financial instruments that have not been derecognised on the date of initial

implementation they shall be adjusted retrospectively if the previous recognition and

measurement are inconsistent with the requirements of the revised standard. No adjustment

is required if the previous comparative financial statements are inconsistent with the

requirements of the revised standard. Adjustment is required for retained earnings and

other comprehensive income at the beginning of the year due to cumulative impact of

retroactive adjustments.The following accounting policy changes have been approved by the company's board of. directors and

Change of accounting

policy content and

reason

Affected items and amount

Consolidated Financial statement Parent company financial statement

In the balance sheet“Notes receivable andaccounts receivable”splits into “Notesreceivables” and

“Accountsreceivables”; “Notespayable and accountspayable” splits into

“Notes payable” and

“Accounts payable”;

the comparative data

is adjusted

accordingly.“Notes receivable and accountsreceivable” splits into “Notesreceivables” and “Accountsreceivables” the ending balance of

last year of “Notes receivables” is

RMB 3580145843.38 and the endingbalance of last year of “Accountsreceivables” is RMB 639482481.45；

“Notes payable and accounts payable”

splits into “Notes payable” and

“Accounts payable” the ending balance

of last year of “Notes payable” is RMB

10013192014.02 the ending balance

of last year of “Accounts payable” is

RMB 5522042811.65.“Notes receivable and accountsreceivable” splits into “Notesreceivable” and “Accountsreceivable” the ending balance of

last year of “Notes receivables” is

RMB 3356020598.89 the endingbalance of last year of “Accountsreceivables” is RMB

409553059.27；

“Notes payable and accountspayable” splits into “Notes payable”and “Accounts payable”; the endingbalance of last year of “Notespayable” is RMB 9213748427.22

the ending balance of last year of

"Accounts payable" is RMB

5940816426.48.

board of supervisors.

Based on adjusted ending balance of previous year in accordance with “Cai-Kuai 2019 No.6” and “Cai-Kuai 2019 No.16” the major impact of the implementation of the above standards are as follows:

Change of accounting

policy content and reason

Affected items and amount

Consolidated Parent company

(1) Non-tradable available-

for-sale equity instrument

investments are designated

as "financial assets

measured at fair value

through other

comprehensive income"

The beginning balance of

available-for-sale financial assets

decrease by RMB

1041824829.00.

The beginning balance of other

equity instrument investment:

increase by RMB

1041824829.00.

The beginning balance of available-for-

sale financial assets decrease by RMB

1041824829.00.

The beginning balance of other equity

instrument investment: increase by RMB

1041824829.00.

Reclassify part of

“Accounts receivables” to

“Financial assets at fairvalue through other

comprehensive income(debt instruments)”

Notes Receivable: decrease by

RMB 3580145843.38 at the

beginning of the year.

Accounts receivable financing:

increases RMB 3580145843.38

at the beginning of the year.Notes Receivable: decreases by RMB

3356020598.89 at the beginning of the

year.

Accounts receivable financing: increases

RMB 3356020598.89 at the beginning

of the year.

Based on adjusted ending balance of previous year according to Cai-Kuai 2019 No. 6 and Cai-Kuai No.16 the financial assets and liabilities recognised and measured before and after the

amendment are compared as follows:

Consolidated:

Old Financial Instrument Standards New Financial Instrument Standards

Items Measurement Method Book value Items Measurement Method Book value

Cash at bank and on hand Amortized cost 16567471755.77 Cash at bank and on hand Amortized cost 16567471755.77

Financial assets at fair value through

profit or loss

Fair value through profit or loss

Financial assets held for

trading

Fair value through profit or loss

Derivative financial assets Fair value through profit or loss Derivative financial assets Fair value through profit or loss

Notes receivable Amortized cost 3580145843.38

Notes receivable Amortized cost

Accounts Receivable

financing

Fair value through other comprehensive

income

3580145843.38

Accounts receivable Amortized cost 639482481.45

Accounts receivable Amortized cost 639482481.45

Receivables financing

Fair value through other comprehensive

income

Other receivables Amortized cost 202763964.98 Other receivable Amortized cost 202763964.98

Held to maturity investments

(Including other current assets)

Amortized cost

Debt investment (Including

other current assets)

Amortized cost

Available for sale financial assets

(Including other current assets)

Fair value through othercomprehensive income（Debt

Debt investment (Including

other current assets)

Amortized cost

Old Financial Instrument Standards New Financial Instrument Standardsinstruments） Other debt investment

(Including other current

assets)

Fair value through other comprehensive

income

Fair value through other

comprehensive income

（Equity instruments）

Financial assets held for

trading

Fair value through profit or loss

Other non-current financial

assets

Other equity instruments

investment

Fair value through other comprehensive

income

Cost (Equity instruments) 1041824829.00

Financial assets held for

trading

Fair value through profit or loss

Other non-current financial

assets

Other equity instruments

investment

Fair value through other comprehensive

income

1041824829.00

Long-term account receivable

Amortized cost

Long-term account

receivable

Amortized cost

Financial liabilities at fair value

through profit or loss

Fair value through profit or loss

Financial liabilities held for

trading

Fair value through profit or loss

Derivative financial liabilities Fair value through profit or loss

Derivative financial

liabilities

Fair value through profit or loss

Parent company

Old Financial Instrument Standards New Financial Instrument Standards

Items Measurement Method Book value Items Measurement Method Book value

Cash at bank and on hand Amortized cost 15536305375.00 Cash at bank and on hand Amortized cost 15536305375.00

Financial assets at fair value

through profit or loss

Fair value through profit or loss Financial assets held for trading Fair value through profit or loss

Derivative financial assets Fair value through profit or loss Derivative financial assets Fair value through profit or loss

Notes receivable Amortized cost 3356020598.89

Notes receivable Amortized cost

Accounts receivable financing

Fair value through other

comprehensive income

3356020598.89

Accounts receivable Amortized cost 409553059.27

Accounts receivable Amortized cost 409553059.27

Accounts receivable financing

Fair value through other

comprehensive income

Other receivables Amortized cost 235037391.46 Other receivables Amortized cost 235037391.46

Held to maturity investments

(Including other current assets)

Amortized cost

Debt investment (Including other

current assets)

Amortized cost

Available for sale financial Fair value through other Debt investment (Including other Amortized cost

Old Financial Instrument Standards New Financial Instrument Standards

assets (Including other current

assets)comprehensive income（Debtinstruments）

current assets)

Other debt investment (Including

other current assets)

Fair value through other

comprehensive income

Fair value through other

comprehensive income (Equity

instruments )

Financial assets held for trading

Fair value through profit or loss

Other non-current financial assets

Other equity instruments investment Fair value through other

comprehensive income

Cost (Equity instruments)

1041624829.00

Financial assets held for trading

Fair value through profit or loss

Other non-current financial assets

Other equity instruments investment Fair value through other

comprehensive income

1041624829.00

Long-term account receivable Amortized cost Long-term account receivable Amortized cost

Financial liabilities at fair

value through profit or loss

Fair value through profit or loss Financial liabilities held for trading Fair value through profit or loss

Derivative financial liabilities Fair value through profit or loss Derivative financial liabilities Fair value through profit or loss

(3) Implementation of “Accounting Standards for Business Enterprises No. 7-Non-Monetary Assets Exchange”

(2019 Revision)Ministry of Finance issued “Accounting Standards for Business Enterprises No. 7-Non-Monetary Assets

Exchange” (Revised 2019) (Caikuai [2019] No. 8) on May 9 2019 and came into effect on June 10 2019.

For non-monetary assets exchange occurred from January 1 2019 to the effective date the adjustment

shall be made accordingly. For non-monetary asset exchanges occurred before January 1 2019

retrospective adjustments are not required. The implementation of the above standards by the company

has no significant impact for the reporting period.

(4) Implementation of “Accounting Standards for Business Enterprises No. 12-Debt Restructuring” (2019

Revision)

Ministry of Finance issued “Accounting Standards for Business Enterprises No. 12-Debt Restructuring”

2019 Revision) (Caikuai [2019] No. 9) on June 17 2019 and came into effect on June 17 2019. For debt

restructuring occurred from January 1 2019 to the effective date the adjustment shall be made accordingly.

For debt restructuring occurred before January 1 2019 retrospective adjustments are not required. The

implementation of the above standards by the company has no significant impact for the reporting period.Ⅶ. Illustrations of Retrospective Restatement Due to Correction of Significant Accounting

Errors in the Reporting Period

□ Applicable √ Not applicable

There was no retrospective restatement due to correction of significant accounting errors during the reporting period

VIII. Illustrations of Changes of the Consolidation Scope as Compared with the Financial

Report of Last Year

□ Applicable √ Not applicable

There is no change of the consolidation scope during the reporting period.IX. Appointment and Dismiss of Certified Accountant’s Firm

Accountant’s firm currently appointed

Name of the domestic accountant’s firm BDO China Shu Lun Pan Certified Public Accountants LLP

Payment to the domestic accountant’s firm (RMB 10

thousand) 280

Service life of domestic accountant’s firm providing

audit service 12

Name of CPAs from the domestic accountant’s firm Wu Xue Li Guiying

Service life of domestic accountants’ providing audit

service 5

Name of the overseas accountant’s firm (if any) None

Payment to overseas accountant’s firm (RMB 10

thousand) (if any) 0

Service life of overseas accountant’s firm providing

audit service (if any) None

Name of CPAs from the overseas accountant’s firm

(if any) None

Whether the accountant’s firm was changed during the reporting period

□ Yes √ No

Engagement of accountant’s firms financial consultants or sponsors for internal control auditing

√ Applicable □ Not applicable

The Company appointed BDO China Shu Lun Pan Certified Public Accountants LLP as the auditor of internal control auditing at RMB

600 thousand.

During the year due to the issue of convertible corporate bonds in this year the company hired Guotai Junan Securities Co. Ltd. as

the sponsor and has not yet paid the fee.X. Risk of Suspension or Termination of Listing after the Disclosure of Annual Report

□ Applicable √ Not applicable

XI. Bankrupt and Reforming Events

□ Applicable √ Not applicable

There was no bankrupt and reforming event during the reporting period.XII. Significant Lawsuits and Arbitrations

□ Applicable √ Not applicable

There was no significant lawsuit or arbitrations during the reporting period.XIII. Punishment and Rectification

□ Applicable √ Not applicable

There was no punishment or rectification during the reporting period.XIV. Credit Status of the Company and its Controlling Shareholders and Actual Controllers

□ Applicable √ Not applicable

XV. Implementation Situation of Stock Incentive Plan of the Company Employee Stock

Ownership Plan or Other Employee Incentive Measures

□ Applicable √ Not applicable

There was no implementation situation of stock incentive plan of the Company employee stock ownership plan or other

employee incentive measures during the reporting period.XVI. Major Related Party Transactions

1. Related party transactions relevant to daily operations

√ Applicable □ Not applicable

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Benxi

Steel &

Iron

(Group)

Co. Ltd.

Parent

Compan

y

Purchas

e of

goods

and

services

Accounts

payable

for repair

On

agreeme

nt

Relate

d

agree

ment

price

27611.

81 0.56% 50000 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Bengang

Cold-

rolled

Stainless

Steel

Dandong

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

171.87 0.00% 1000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Labor cost

On

agreeme

nt

Relate

d

agree

ment

price

864.66 0.02% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

466510

.9 9.48% 500000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Freight

On

agreeme

nt

Relate

d

agree

ment

price

1318.1

6 0.03% No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Metallurg

y

Residues

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

27932.

17 0.57% 30000 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Steel &

Iron

Process

and

Logistics

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Processin

g fee

On

agreeme

nt

Relate

d

agree

ment

price

127.67 0.00% 300 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Same

controll

er

Purchas

e of

goods

and

Raw

materials

On

agreeme

nt

Relate

d

agree

ment

3648.9

5 0.07% 10000 No

Execute

accordi

ng to

the

Yes 2019.04.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Real-

estate

Develop

ment Co.Ltd.services price agreeme

nt

Benxi

Steel &

Iron

(Group)

Machiner

y

Manufact

ure Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

11131.

68 0.23% 25000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Machiner

y

Manufact

ure Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

2922.7

4 0.06% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

787.21 0.02% 50000 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Project

fee

On

agreeme

nt

Relate

d

agree

ment

price

18016.

18 0.37% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

21561.

78 0.44% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

236.1 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Same

controll

Purchas

e of

Freight On

agreeme

Relate

d

502.47 0.01% No Execute

accordi

No 2019.04.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Iron

(Group)

Construct

ion Co.Ltd.er goods

and

services

nt agree

ment

price

ng to

the

agreeme

nt

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

19118 0.39% 30000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

2157.6

5 0.04% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Freight

On

agreeme

nt

Relate

d

agree

ment

price

446.8 0.01% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Project

fee

On

agreeme

nt

Relate

d

agree

ment

price

235 0.00% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion and

Repairing

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

256.76 0.01% 28000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Construct

ion and

Repairing

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Project

fee

On

agreeme

nt

Relate

d

agree

ment

price

4998.3

4 0.10% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Benxi

Steel &

Iron

(Group)

Construct

ion and

Repairing

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Accounts

payable

for repair

On

agreeme

nt

Relate

d

agree

ment

price

19506.

98 0.40% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Bengang

Electronic

s and Gas

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

13763 0.28% 20000 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Bengang

Electronic

s and Gas

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

1879.3

6 0.04% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

High-tech

Drilling

Tools

Manufact

ure Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

26.63 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

New

Career

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

487.81 0.01% 1200 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Benxi

New

Career

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

and food

On

agreeme

nt

Relate

d

agree

ment

price

907.16 0.02% No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Liaoning

Metallurg

y

Technicia

n College

Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

1202.0

1 0.02% 1500 No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Liaoning

Metallurg

ical

Vocationa

l and

Technical

College

Same

controll

er

Purchas

e of

goods

and

services

Project

fee

On

agreeme

nt

Relate

d

agree

ment

price

0.00% 1000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Liaoning

Metallurg

ical

Vocationa

l and

Technical

College

Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

580.5 0.01% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Group

Internatio

nal

Economic

and

Trading

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Agency

fee

On

agreeme

nt

Relate

d

agree

ment

price

6309.7

3 0.13% 25000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Group

Internatio

nal

Economic

and

Trading

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Port

surcharges

On

agreeme

nt

Relate

d

agree

ment

price

7099.2 0.14% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Informati

on and

Automati

c Tech

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

785.28 0.02% 10000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Informati

on and

Automati

c Tech

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Project

fee

On

agreeme

nt

Relate

d

agree

ment

price

1942.5

2 0.04% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Informati

on and

Automati

c Tech

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Repair

services

On

agreeme

nt

Relate

d

agree

ment

price

3483.2

4 0.07% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Same

controll

er

Purchas

e of

goods

and

Heating

costs

On

agreeme

nt

Relate

d

agree

ment

115.25 0.00% 500 No

Execute

accordi

ng to

the

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Thermal

Power

Develop

ment Co.Ltd.services price agreeme

nt

Benxi

Steel &

Iron

(Group)

Thermal

Power

Develop

ment Co.Ltd.Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

70.93 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Designing

Institute

Same

controll

er

Purchas

e of

goods

and

services

Design

fees

On

agreeme

nt

Relate

d

agree

ment

price

1323.4 0.03% 1000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and

suppleme

ntary

material

On

agreeme

nt

Relate

d

agree

ment

price

11543

78.53 23.46%

18000

00 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

54489.

91 1.11% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Freight

On

agreeme

nt

Relate

d

agree

ment

price

571.46 0.01% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Labor cost

On

agreeme

nt

Relate

d

agree

ment

price

8663.2

3 0.18% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

1308.4

5 0.03% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Liaoning

Hengtong

Metallurg

Same

controll

er

Purchas

e of

goods

Raw

material

and spare

On

agreeme

nt

Relate

d

agree

8758.9

6 0.18% 15000 No

Execute

accordi

ng to

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

ical

Equipmen

t

Manufact

ure Co.Ltd.and

services

parts ment

price

the

agreeme

nt

Liaoning

Hengtai

Heavy

Machiner

y Co.

Ltd.Same

controll

er

Purchas

e of

goods

and

services

Raw

material

and spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

231.09 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Liaoning

Hengtai

Heavy

Machiner

y Co.

Ltd.Same

controll

er

Purchas

e of

goods

and

services

Repair

and labor

cost

On

agreeme

nt

Relate

d

agree

ment

price

1930.3

5 0.04% 8000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Group

Co. Ltd.

Same

controll

er

Purchas

e of

goods

and

services

Property

managem

ent fee

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Group

Co. Ltd.

Controll

er

Purchas

e of

goods

and

services

Labor cost

On

agreeme

nt

Relate

d

agree

ment

price

15507.

9 0.32% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Electronic

s and Gas

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

76.74 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

500154

.15 9.48% 300000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Beiying

Steel &

Iron

(Group)

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

1286.5

9 0.02% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Beiying

Steel &

Same

controll

er

Sales of

goods

and

Energy &

Power

On

agreeme

nt

Relate

d

agree

21662.

54 0.41% No

Execute

accordi

ng to

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Iron

(Group)

Co. Ltd.

services ment

price

the

agreeme

nt

Benxi

Steel &

Iron

(Group)

Real-

estate

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

10.44 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Steel &

Iron

Process

and

Logistics

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

36.79 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Steel &

Iron

Process

and

Logistics

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

89.25 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Machiner

y

Manufact

ure Co.Ltd.Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

980.32 0.02% 8000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Machiner

y

Manufact

ure Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

2137.3 0.04% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

On

agreeme

nt

Relate

d

agree

ment

641.3 0.01% No

Execute

accordi

ng to

the

Yes

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Machiner

y

Manufact

ure Co.Ltd.ntary

materials

& spare

parts

price agreeme

nt

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

593.8 0.01% 10000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Construct

ion Co.Ltd.Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

5781 0.11% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

64747.

81 1.23% 100000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

10078.

34 0.19% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Freight

revenue

On

agreeme

nt

Relate

d

agree

ment

price

1031.7

9 0.02% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Mining

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

502.82 0.01% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Thermal

Power

Develop

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

2639.7

3 0.05% 8000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

ment Co.Ltd.

Benxi

Steel &

Iron

(Group)

Thermal

Power

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

2749.2

1 0.05% No

Execute

accordi

ng to

the

agreeme

nt

Yes 2019.04.19

Benxi

Steel &

Iron

(Group)

Thermal

Power

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Freight

revenue

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

827.49 0.02% 5000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Industrial

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

2295.9

6 0.04% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Informati

on and

Automati

c Tech

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

15.87 0.00% 300 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Benxi

Steel &

Iron

(Group)

Construct

ion and

Repairing

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

133.05 0.00% 8000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Construct

ion and

Repairing

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

93.84 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Metallurg

y

Residues

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

532.33 0.01% 30000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Metallurg

y

Residues

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

25018.

15 0.47% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Metallurg

y

Residues

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Freight

revenue

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Metallurg

y

Residues

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

Co. Ltd.

Parent

Compan

y

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

232.43 0.00% 1000 No

Execute

accordi

ng to

the

agreeme

No

2019.04

.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

nt

Benxi

Steel &

Iron

(Group)

Co. Ltd.

Parent

Compan

y

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

796.46 0.02% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

New

Career

Develop

ment Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

40.25 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Dalian

Boluole

Steel

Tube Co.Ltd.Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

404.87 0.01% 1000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Liaoning

Bengang

Steel &

Iron

Trading

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Benxi

Steel &

Iron

(Group)

General

Hospital

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

5.09 0.00% 50 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Benxi

Steel &

Iron

(Group)

Zhengtai

Construct

ion

Materials

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

5.22 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Liaoning

Hengtong

Metallurg

ical

Equipmen

t

Manufact

ure Co.Ltd.Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

0.00% 5000 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Liaoning

Hengtong

Same

controll

Sales of

goods

Raw

material

On

agreeme

Relate

d

2444.7

6 0.05% No

Execute

accordi

Yes 2019.04.19

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Metallurg

ical

Equipmen

t

Manufact

ure Co.Ltd.er and

services

&

suppleme

ntary

materials

& spare

parts

nt agree

ment

price

ng to

the

agreeme

nt

Liaoning

Hengtong

Metallurg

ical

Equipmen

t

Manufact

ure Co.Ltd.Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

352.89 0.01% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Bengang

Cold-

rolled

Stainless

Steel

Dandong

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Raw

material

&

suppleme

ntary

materials

& spare

parts

On

agreeme

nt

Relate

d

agree

ment

price

46.59 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Bengang

Cold-

rolled

Stainless

Steel

Dandong

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

111.16 0.00% No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Suzhou

Bengang

Industrial

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Products

On

agreeme

nt

Relate

d

agree

ment

price

41269.

54 0.78% 50000 No

Execute

accordi

ng to

the

agreeme

nt

Yes

2019.04

.19

Bengang

Group

Finance

Co. Ltd.

Same

controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

1.39 0.00% 50 No

Execute

accordi

ng to

the

agreeme

nt

No

2019.04

.19

Bengang

Group

Co. Ltd.

Controll

er

Sales of

goods

and

services

Energy &

Power

On

agreeme

nt

Relate

d

agree

ment

price

2.78 0.00% 500 No

Execute

accordi

ng to

the

agreeme

nt

No 2019.04.19

Total -- -- 2605709.82 --

31374

00 -- -- -- -- --

Details of any sales return of a large

amount Not applicable

Related

parties

Relation

ship

Type of

related

party

transacti

ons

Content of

related

party

transactio

ns

Pricing

principle

of

related

party

transacti

ons

Price

of

relate

d

party

transa

ctions

Amount

of

related

party

transacti

ons (in

10

thousan

d)

Proporti

on of

similar

transacti

ons

The

approve

d

trading

limit of

transacti

ons (in

10

thousan

d)

Whethe

r exceed

the

approve

d

limited

(Y/N)

Means

of

paymen

t of

related

party

transacti

ons

Availabl

e

market

price of

similar

transacti

ons

Date of

disclosu

re

Index

of

disclos

ure

Give the actual situation during the

reporting period where a forecast had

been made for the total amounts of

routine related-party transactions，bytype to occur in the current period(if

any)

Not applicable

Reason for any significant difference

between the transaction price and the

Market price for reference (if

applicable)

Not applicable

2. Related transactions relevant to asset acquisition or sold

□ Applicable √ Not applicable

There was no related transaction relevant to asset acquisition or sold during the reporting period.

3. Related transactions relevant to joint investments

□ Applicable √ Not applicable

There was no related transaction relevant to joint investments during the reporting period.

4. Credits and liabilities with related parties

□Applicable √ Not applicable

There were no non-operating related credits and debts during the reporting period.

5. Other significant related transactions

√ Applicable □Not applicable

Related party Related transaction content Amount in current year (tax

exclusive)

Amount in last year (tax

exclusive)

Benxi Beiying Steel &

Iron (Group) Co. Ltd.Purchase 2300 hot rolling mill

production line

3004988590.00

Benxi Steel & Iron

(Group) Co. Ltd.Purchase 1780 hot rolling mill

production line

684727905.00

Notes:

On August 14 2019 the company signed the "Asset Transfer Agreement" with Bengang Group Co. Ltd. and Benxi Beiying Steel &

Iron (Group) Co. Ltd. respectively to acquire the related equipment assets of the 2300mm hot rolling mill production line held by

Bengang Group and the related equipment assets of 1780mm hot rolling mill production line held by Beiying Steel.

XVII. Major Contracts and Their Performance

1. Trusteeship contracting and lease

(1) Trusteeship

□ Applicable √ Not applicable

There was no trusteeship during the reporting period.

(2) Contracting

□ Applicable √ Not applicable

There was no contracting during the reporting period.

(3) Lease

√ Applicable □ Not applicable

Lessee Lease capital category Lease income of 2019 Lease income of 2018

Benxi Steel & Iron (Group) Steel &

Iron Process and Logistics Co. Ltd. Warehouse and machinery

500000.00 500000.00

Benxi Steel & Iron (Group)

Machinery Manufacture Co. Ltd. Plants and machinery

122500.03 490000.00

Gains or losses from lease counted over 10% of total profit.

□ Applicable √ Not applicable

During the reporting period there were no lease projects that resulted in a profit or loss of more than 10% of the total profit of the

company during the reporting period

2. Guarantee

□ Applicable √ Not applicable

There was no guarantee during the reporting period.

3. Entrusting Others for Managing Cash Asset

(1) Entrusted Finance

√ Applicable □ Not applicable

Unit：10 thousand

Type Source of funds for entrusted financing Amount Outstanding balance

Overdue amount not

recovered

Bank financial product Own temporarily idle funds 2450 0 0

Bank financial product Own temporarily idle funds 2400 0 0

Bank financial product Own temporarily idle funds 427.3 0 0

Total 5277.3 0 0

(2) Entrusted Loans

□ Applicable √ Not applicable

There was no entrusted loan during the reporting period.

4. Other Major Contracts

□ Applicable √ Not applicable

There was no other major contract during the reporting period.XVIII. Social Responsibilities

1. Performing other corporation social responsibilities

During the reporting period the company actively protected the legitimate rights and interests of creditors and all

employees while pursuing the economic benefits of the company and protecting the interests of shareholders in

accordance with the spirit of corporate social responsibility and actively treated suppliers customers and consumers.Public welfare undertakings such as environmental protection and community building. In the business activities

consciously follow the principles of voluntariness fairness equal pay honesty and credit consciously abide by social

morality professional ethics consciously accept the supervision of the government and the public and actively fulfill the

corporate social responsibility.

2. Performing corporation social responsibility of targeted poverty alleviation

In the annual report of the company there has been no accurate poverty alleviation work and there is no follow-up

accurate poverty alleviation plan.

3. Environmental protection-related conditions

Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the

environmental protection department.Yes

Name

Main

pollutants

and specific

pollutants

Discharge

modes

The

number of

discharge

hatch

The distribution

of discharge

hatch

Emission

concentra

tion

The

emission

standard

Total

emission

Approved

total

emission

Surpass the

emission

standard

Bengang

Steel Plates

Co. Ltd.

COD Continuous 1

Energy integral

factory sewage

treatment plant.Sewage

8-29 Sewage 50 171.54 tons

Unapproved

by the

government

None

Bengang

Steel Plates

Co. Ltd.

NH3-N Continuous 1

Energy integral

factory sewage

treatment plant.Sewage

1.1-4 Sewage 5 32.43 tons

Unapproved

by the

government

None

Bengang

Steel Plates

Co. Ltd.

Particulate

Matter

Continuous

and

intermittent

178

Raw material

dumper transfer

station

receiving ore

tank pre-batch;

coke oven

adding coal

pushing coke

dry quenching;

ironmaking

tapping field

furnace roof

fuel solvent

granulation ore

coke tank;

sintering head

Raw

materials

7-25;

coking 3-

30;

Ironmaki

ng 5-48;

Steelmaki

ng 7-14;

Special

steel 7-

15;

Power

generatio

n 5-10;

Cold

Raw

materials

25; coking

30-50;

ironmaking

25-50;

steelmaking

20-50;

special steel

20-50;

power

generation

10-30; cold

rolling 20-

30; hot

rolling 20-

12828.10

tons

Unapproved

by the

government

None

machine Tail;

iron and steel

water

pretreatment

ferroalloy

feeding north-

south infusion

station tundish

primary dust

removal

secondary dust

removal

refining dust

removal; special

steel electric

furnace refining

furnace electric

slag furnace;

power

generation

boiler

desulfurization

and

denitrification;

cold rolling acid

regeneration

Pickling

drawing

straightening

welding

machine

smoothing

annealing

roasting; hot

rolling heating

furnace.rolling;

6-18 hot

rolling 6-

15.

30.

Bengang

Steel Plates

Co. Ltd.

SO?

Continuous

and

intermittent

64

Coke oven

CDQ;

Ironmaking

sintering head;

power

generation

boiler; cold

rolling roasting

annealing; hot

rolling furnace.

Coke

oven

CDQ 16-

82;

Sintering

machine

head 12-

40;

power

generatio

n 10-70;

cold

rolling

45-141;

hot

rolling

51-98.

CDQ 100;

Sintering

head 200;

power

generation

100-200;

cold rolling

150; hot

rolling 150.

5499.83

tons

Unapproved

by the

government

None

Bengang

Steel Plates

Co. Ltd.

Oxides of

nitrogen

Continuous

and

intermittent

57

Ironmaking

sintering head;

power

generation

boiler; cold

rolling roasting

annealing; hot

rolling furnace.furnace.Sintering

head 110-

230;

power

generatio

n 50-140;

cold

rolling

69-172;

hot

rolling

105-188.

Sintering

head 300;

power

generation

100-200;

cold rolling

300; hot

rolling 300.

12084.69

tons

Unapproved

by the

government

None

Construction and operation of pollution prevention facility:

The company has a total of 178 sets of environmental pollution prevention and control facilities. In addition to the hot rolling mill 2300

production line the rough-rolling finishing rolling plastic plate dust collector which is designed for the production of stainless steel

the rest of the facilities are put into use normally.

Environmental Impact Assessment and Other Environmental Protection Administrative Licensing of Construction Projects

1. Regarding of the "Environmental Impact Report Form of High-Grade High-Magnetic Induction Non-Oriented Silicon

Steel Project of Bengang Steel Plates Co. Ltd." Benxi City Environmental Protection Bureau issued the environmental

assessment approval: Ben-Huan-Jian-Biao-Zi [2019] No. 03 2019-5-25;

2. Regarding of the "Environmental Impact Report Form of No. 8 Casting Machine Project of Bengang Steel Plates Co.

Ltd. Ltd. Steelmaking Plant" Benxi City Environmental Protection Bureau issued the environmental assessment approval:

Ben-Huan-Jian-Biao-Zi [2019] No. 04 2019-6-18;

3. Regarding of the "Environmental Impact Report Form for the 1700 Hot Rolling Improvement Project of Bengang Steel

Plates Co. Ltd. (Phase I)" Benxi City Environmental Protection Bureau issued the environmental assessment approval:

Ben-Huan-Jian-Biao-Zi [2019] No. 05 2019-7-24;

4. Regarding of the "Environmental Impact Report Form of the No. 7 Coke Oven Flue Gas Desulfurization and

Denitrification Project of Bengang Steel Plates Co. Ltd. Coking Plant" Environmental Protection Bureau issued the

environmental assessment approval: Ben-Huan-Jian-Biao-Zi [2019] No. 10 2019-7-12;

5. Regarding the environmental impact report of the No. 5 blast furnace capacity replacement project of Bengang Steel

Plates Co. Ltd. Liaoning Provincial Environmental Protection Bureau issued the environmental assessment approval:

Liao-Huan-Han [2019] No. 171 2019-11-27;

6. Regarding the environmental impact report of the Special Steel Electric Furnace Upgrading Project of Bengang Steel

Plate Co. Ltd. Liaoning Provincial Environmental Protection Bureau issued the environmental assessment approval:

Liao-Huan-Han [2019] No. 172 2019-7-12;

7. Discharge permit complete the discharge permit of the plate company energy plant on schedule.

Emergency plan for emergency environmental incidents

The company and its subordinate 13 units are revised the emergency plans for emergency environmental incidents and

carried out related work such as risk assessment and investigation of emergency resources in accordance with the "Law

of the People's Republic of China on Incident Responses" "Notice on Printing and Distributing the Guidelines for Risk

Assessment of Enterprises' Environmental Emergencies (Trial)" and "Emergency Preparedness for Environmental

Incidents of Enterprises and Institutions" Existing laws and regulations such as the Administrative Measures (Trial).

Environmental self-monitoring project.

In 2019 the self-monitoring plan was carried out in accordance with the requirements of the pollutant discharge permit.

The monitoring points of Bengang Steel pollution sources: 156 flue gas 10 wastewater monitoring points 5 noise points

at the boundary of the plant 27 atmospheric dustfall points and newly added unorganized monitoring. The number of

points is 50. From the plate factory to the mine the monitoring is divided into weekly monthly seasonal semi-annual

and annual frequency monitoring. The main monitoring items of the automatic air quality monitoring station are PM10

PM2.5 sulfur dioxide and nitrogen dioxide. O3 CO one set of data per hour a total of 52560 monitoring data were

obtained throughout the year; 27 steel dust points were distributed in the steel plant area and 324 monitoring data were

obtained; routine monitoring tasks for flue gas were completed and monitoring was achieved throughout the year 936

data; 5 noise monitoring points at the boundary of the plant 160 monitoring data; 10 wastewater monitoring points 4335

monitoring data; 172 temporary monitoring data and a total of 5926 monitoring data reported by the monitoring station.Monthly quarterly reports and separate monitoring reports for each mine are reported.Other environmental information that should be disclosed

None

Other environmental protection related information

None

XIX. Other Major Issues

□ Applicable √ Not applicable

There was no need for illustrating other major issue.XX. Major Issues of Subsidiaries

□ Applicable √ Not applicable

VI. Status of Share Capital Changes and Shareholders

I. Share Capital Changes

1. Share capital changes

Unit: Share

Before the change Increase/decrease(+，-) After the Change

Quantity Percentage

Issuing of new

share

Bonus

shares

Capitaliz

ation of

common

reserve

fund

Others Subtotal Quantity Percentage

I. Restricted Shares 739371532 19.08%

-

73937153

2

-

7393715

32

0

2. State-own Legal-person

Shareholding 184842883 4.77%

-

18484288

3

-

1848428

83

0

3. Other domestic

shareholdings 554528649 14.31%

-

55452864

9

-

5545286

49

0

Including: Domestic legal

person holding 554528649 14.31%

-

55452864

9

-

5545286

49

0

II. Non-restricted Shares 3136000000 80.92% 739371532

7393715

32 3875371532 100.00%

1. Common shares in

RMB 2736000000 70.60%

73937153

2

7393715

32 3475371532 89.68%

2. Foreign shares in

domestic market 400000000 10.32% 400000000 10.32%

III. Total shares 3875371532 100.00% 3875371532 100.00%

Causation of share capital changes

√Applicable □Not applicable

The Company’s private issuance of 739371532(RMB) common shares to Liaoning Traffic Investment Co. Ltd. Jianxin Fund

Management Co. Ltd. Beixin Ruifeng Fund Management Co. Ltd. and Guoshou Security Fund Management Co. Ltd. has expired.The Company completed the lifting of sales restrictions on April 18 2019.

Approval of share capital changes

□Applicable √Not applicable

Status of registration process of transferred shares

□Applicable √Not applicable

Progress of Share Repurchase

□ Applicable √ Not applicable

Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding

□ Applicable √ Not applicable

Influences of share capital changes on financial indices such as basic earnings per share diluted earnings per share and net asset per

share attributed to common shareholders

□ Applicable √ Not applicable

Other information the Company deems necessary to be disclosed or required by the authority

□ Applicable √ Not applicable

2. Changes of Restricted Shares

√Applicable □ Not applicable

Unit: Share

Shareholder Number of initial restricted shares

Number of

Limited Shares

Increased number

of restricted

End-of-Term

Limited Shares

Restriction

reason Release date

II. Securities Issuance and Listing

1. Status of Security Issuance (Excluding Preferred Shares) in the Reporting Period

□ Applicable √ Not applicable

2. Total Share and Shareholder Change and Asset and Liability Structure Change

□ Applicable √ Not applicable

3. Employee Shareholding Status

□ Applicable √ Not applicable

III. Shareholders and Actual Controller

1. Total Number of shareholders and shareholding

In Shares

Total number of

common shareholders

at the end of the

reporting period

52294

Total

shareholders at

the end of the

month from the

date of

disclosing the

52784

The total number of

preferred shareholders

voting rights restored at

the end of the reporting

period (See Notes 8)

0

Total preferred

shareholders at the

end of the month from

the date of disclosing

the annual report (if

any) (See Notes 8)

0

Released in the

Current Period

shares in the

current period

Liaoning

Provincial

Transportation

Investment Group

Co. Ltd.

184842883 0 184842883 0 The number of

restricted shares

participating in

the additional

issue was

184842883.

April 18th 2019

CCB Principal

Asset Management

– ICBC – CR Trust

– CR Trust · Xing

Sheng No. 5

Collective Fund

Trust Plan

184842883 0 184842883 0 The number of

restricted shares

participating in

the additional

issue was

184842883.

April 18th 2019

Bei Xin Rui Feng

Fund – China

Merchants Bank –

Bei Xin Rui Feng

Fund Feng Qing

No. 229 Asset

Management Plan

184842883 0 184842883 0 The number of

restricted shares

participating in

the additional

issue was

184842883.

April 18th 2019

China Life AMP

Fund– ICBC –

China Life AMP –

Hua Xin Trust

Targeted

Additional Shares

Issuance No. 10

Asset Management

Plan

184842883 0 184842883 0

The number of

restricted shares

participating in

the additional

issue was

184842883.

April 18th 2019

Total 739371532 0 739371532 0 -- --

annual report

Shareholding of shareholders holding more than 5% or top 10 shareholders

Name of the

shareholder

Nature of

shareholder

Holding

Percentage

(%)

Number of

shares held at

period-end

Changes in

reporting

period

Restricted

shares held

Un-restricted

shares held

Number of pledged or

frozen shares

Status Number

Benxi Steel & Iron

(Group) Co. Ltd.State-owned

legal person 61.44% 2381105094 25695831 2381105094

Pledged 110000000

Frozen 45000000

Liaoning Provincial

Transportation

Investment Group

Co. Ltd.

State-owned

legal person 4.77% 184719383 184719383

CCB Principal Asset

Management – ICBC

– CR Trust – CR

Trust · Xing Sheng

No. 5 Collective Fund

Trust Plan

Others 4.77% 184842883 184842883

Bei Xin Rui Feng

Fund – China

Merchants Bank – Bei

Xin Rui Feng Fund

Feng Qing No. 229

Asset Management

Plan

Others 4.77% 184842883 184842883

China Life AMP

Fund– ICBC – China

Life AMP – Hua Xin

Trust Targeted

Additional Shares

Issuance No. 10 Asset

Management Plan

Others 4.77% 184842883 184842883

Liang Zhongqing Domestic natural person 0.65% 25090000 25090000 25090000

Agricultural bank of

China - China

Securities 500 Trading

Open Index Securities

Investment Fund

Others 0.32% 12590111 8532301 12590111

Liu Qiuying Domestic natural person 0.31% 11839000 11839000 11839000

Yi Honglu Domestic natural person 0.24% 9458570 9458570 9458570

VANGUARD

EMERGING

MARKETS STOCK

INDEX FUND

Foreign legal

person 0.21% 8157311 8157311

Strategy investors or general legal

person becomes top 10 shareholders due

to rights issued (if any) (See Notes 3)

None

Notes to relationship or ‘action in

concert’ among the top 10 shareholders.It is unknown to the Company whether there is any related connection or ‘Action in Concert’ as

described by Rules of Information Disclosing Regarding Changing of Shareholding Status of

Listed Companies existing among the above shareholders.Shareholding of top 10 unrestricted shareholders

Name of the shareholder Un-restricted shares held at the end of the reporting period

Category of shares

Category of shares Quantity

Benxi Steel & Iron (Group) Co. Ltd. 2381105094 Common shares in RMB 2381105094

Liaoning Provincial Transportation Investment

Group Co. Ltd. 184719383 Common shares in RMB 184719383

CCB Principal Asset Management – ICBC – CR 184842883 Common shares in RMB 184719383

Trust – CR Trust · Xing Sheng No. 5 Collective

Fund Trust Plan

Bei Xin Rui Feng Fund – China Merchants

Bank – Bei Xin Rui Feng Fund Feng Qing No.

229 Asset Management Plan

184842883 Common shares in RMB 184719383

China Life AMP Fund– ICBC – China Life

AMP – Hua Xin Trust Targeted Additional

Shares Issuance No. 10 Asset Management Plan

184842883 Common shares in RMB 184719383

Liang Zhongqing 25090000 Common shares in RMB 25090000

Agricultural bank of China - China Securities

500 Trading Open Index Securities Investment

Fund

12590111 Common shares in RMB 12590111

Liu Qiuying 11839000 Common shares in RMB 11839000

Yi Honglu 9458570 Common shares in RMB 9458570

VANGUARD EMERGING MARKETS

STOCK INDEX FUND 8157311 Foreign shares in domestic exchange 8157311

Notes to relationship or ‘action in concert’

among the top 10 non-restricted shareholders

and among the top 10 non-restricted

shareholders and top 10 shareholders

Benxi Steel & Iron (Group) Co. Ltd. the holding shareholder has no relationship with

any of the other shareholders among the top 10 shareholders neither being regarded as

action-in-concert parties by the Information Disclosure Regulations for Change of

Shareholding in PLC. The Company is not aware of any relationship among the other

shareholders neither being regarded as action-in-concert parties by the Information

Disclosure Regulations for Change of Shareholding in PLC. The Company is not aware

of any relationship among the top 10 shareholders neither being regarded as action-in-

concert parties by the Information Disclosure Regulations for Change of Shareholding in

PLC.

Shareholders among the top 10 participating in

securities margin trading (if any) (see Note 4)

Benxi Steel & Iron (Group) Co. Ltd. Holds 2142105094 shares of the Company’s stock

through credit security account and holds 239000000 shares of the Company’s stock

totaling 2381105094 shares. Liang Zhongqing holds 25090000 shares of the

Company’s stock through credit security account. Liu Qiuying holds 11839000 shares

of the Company’s stock through credit security account. Yi Honglu holds 9458570 shares

of the Company’s stock through credit security 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. Controlling Shareholder

Nature of Controlling Shareholders: Local state holding

Type of Controlling Shareholders: Legal person

Name of the

Controlling

shareholder

Legal representative

/ person in charge

Date of

incorporation

Organization

Code Principal business activities

Benxi Steel & Iron

(Group) Co. Ltd. Yang Chengguang July 101996

9121050011972

6263U

Business scope: steel smelt mine exploitation panel

rolling oxygen manufacturing pipe manufacturing power

generating coal industry special steel material

manufacturing heating supply of the water electricity

wind and gas metal processing electro mechanics builds

device manufacturing architecture installation railway

highway transportation import and export trade traveling

industry construction material refractory material

measuring device instrument goods and materials supply

and marketing development of real estate scientific

research design information service property

management telecommunication processing of waste

iron property leasing exchange of steel material and

recycling of waste oils (to the extent of licensed to the

subsidiary companies) property management; publishing

of Bengang Daily; designing and making of presswork and

advertisement releasing producing of TV advertisements

in the country and abroad.

Equity of other

domestic/foreign

listed company

with share

controlling and

share participation

by controlling

shareholder in

reporting period

None

Changes of controlling shareholders during the reporting period

□ Applicable √ Not applicable

The controlling shareholder of the company has not changed during the reporting period.

3. Actual Controller

Actual controller nature: Local state owned assets management

Actual controller type: Legal person

Name of the controlling shareholder Legal representative / person in charge

Date of

incorporation Organization Code

Principal business

activities

Liaoning Provincial State-owned Assets

Supervision and Administration Commission

Unknown Unknown Unknown

Equity of other domestic/foreign listed

company with share controlling and share

participation by controlling shareholder in

reporting period

The Company was not informed of the actual controller's control of the equity of other

domestic and foreign listed companies during the reporting period.

Change of actual controller during the reporting period

□ Applicable √ Not applicable

There is no change of actual controller during the reporting period.

Block diagram of the ownership and control relations between the Company and the actual controller

Whether the actual controller is controlling the Company through trusteeship or other asset management service

□ Applicable √ Not applicable

4. Shareholders holding More than 10% of the Shares

□ Applicable √ Not applicable

Bengang Steel Plates Co. Ltd.

Bengang Group Co. Ltd.

Benxi Steel & Iron (Group) Co. Ltd.

Liaoning Provincial State-owned Assets

Supervision and Administration Commission

Liaoning Council for social security fund

80% 20%

85.33%

61.44%

Huatai Securities (Shanghai) Asset Management Co. Ltd.

14.67%

5. Status of Share Reduction Limitation of Controlling Shareholders Actual Controller Restructuring Party

and Other Commitment Subjects

□ Applicable √ Not applicable

VII. Status of Preferred Shares

□ Applicable √ Not applicable

There was no preferred stock in the company during the reporting period.

VIII. Status of Convertible Corporate Bonds

□ Applicable √ Not applicable

There were no convertible corporate bonds in the reporting period.

IX. Status of Directors Supervisors Senior Executives and

Employees

I. Change in Shares held by Directors Supervisors and Senior Executives

Name Position

Office

status

Sex

Ag

e

Starting

date of

office

term

Expiry

date of

office term

Shares

held at

the

year-

begin

Shares

increased

during the

reporting

period

Shares

decreased

during the

reporting

period

Other

increase

/

decrease

Shares

held at

the year-

end

Gao Lie

Director

Chairman

In office Male 52

March 14

2019

May 16

2022

Cao Aimin

Director

Vice

Chairman

In office Male 52

June 3

2010

May 16

2022

Shen

Qiang

Director

General

Manager

In office Male 51

May 16

2019

May

162022

Hunag

Xinghua

Director In office Male 56

May 24

2018

May

16202

Zhong

Tianli

Independent

Director

In office

Femal

e

63

May 20

2014

May

202022

Zhao

Xinan

Independent

Director

In office Male 59

May 21

2015

May

212021

Zhang

Suxun

Independent

Director

In office

Femal

e

64

May 16

2019

May

162022

Han Mei

Supervisor

Chairman of

Supervisory

Committee

In office

Femal

e

50

February

19 2014

May

162022

Li Lin Supervisor In office Male 51

February

19 2014

May

162022

Li Xiaowei Supervisor In office Male 44

March 14

2019

May

162022

Zhao

Xingtao

Supervisor In office Male 47

June 26

2018

May

162022

Zhang

Yanlong

Supervisor In office Male 42

January

26 2014

May

162022

Bao

Mingwei

Deputy

General

In office Male 56

December

28 2012

May

162022

Manager

Wang

Fengmin

Deputy

General

Manager

In office Male 54

January

26 2014

May

162022

Huo Gang

Deputy

General

Manager

In office

Femal

e

46

March

142019

May

162022

Zhao

Zhonghua

Director of

Finance

In office

Femal

e

35

April 18

2019

May

162022

Gao

Desheng

Secretary of

the Board

In office Male 45

Septembe

r 202018

May

162022

Wang Shu

Director

Chairman

Leaving

office

Male 48

December

272016

March

142019

Jin Yongli

Independent

Director

Leaving

office

Male 61

May

172013

May

162019

Liu

Yansong

Supervisor

Leaving

office

Male 48

August

09 2018

June

262019

Hu

Guangyua

n

Deputy

General

Manager

Leaving

office

Male 59

January

26 2014

March

142019

Total -- -- -- -- -- --

II. Change in Directors Supervisors and Senior Executives

√Applicable □ Not applicable

Name Position

Type of

change

Date Reason

Wang Shu Director Chairman Leaving office March 142019 Voluntary turnover

Jin Yongli

Independent

Director

Leaving office

after expiry of

term

May 162019

Leaving office after expiry of

term

Dong Liju

Supervisor

Chairman of

Supervisory

Committee