Bengang Steel Plates Co. Ltd.

First Quarter Report 2021

April 2021

Ⅰ. Important Notice

The Board of Directors the Supervisory Committee and the Directors members of the

Supervisory Committee and senior management of the Company guarantee that there

are no misrepresentations or misleading statements or material omission in this report

and individually and collectively accept full responsibility for the authenticity

accuracy and integrity of the information contained in this report.

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

report was examined.Gao Lie Chairman of the Company Lin Dong the principal in charge of the

accounting and Cong Yajuan Chief of Accounting Affairs make the pledge for the

authenticity accuracy and integrity of the attached financial statements.

II. Company Profile

I. Main Accounting data and Financial index

Whether the Company makes retroactive adjustment or restatement of the accounting data of the previous year

□ Yes √ No

Jan.-Mar. 2021 Jan.-Mar. 2020 Changes (+/-)

Operating income（RMB） 15252265770.99 11728574704.88 30.04%

Net profit attributable to the

shareholders of the listed company

（RMB）

686599759.65 177998575.36 285.73%

Net profit after deducting of non-

recurring gain/loss attributable to the

shareholders of listed company

（RMB）

678208256.33 168656828.67 302.12%

Net Cash flows generated by business

operation（RMB）

-966470265.23 684846620.22 -241.12%

Basic earnings per share (RMB/Share) 0.18 0.05 260.00%

Diluted earnings per share

(RMB/Share)

0.18 0.05 260.00%

Weighted average net assets yield (%) 3.21% 0.91% 2.30%

31 Mar. 2021 31 Dec 2020 Changes (+/-)

Gross assets（RMB） 66446670324.00 65007470749.20 2.21%

Net assets attributable to shareholders

of the listed company（RMB）

21713721738.01 21018296389.10 3.31%

Items and amount of non-recurring profit and loss

√ Applicable □ Not applicable

Unit: RMB

Items Jan.-Mar. 2021 Notes

Profit or loss from disposal of non-current assets

(including the write-off part for which assets impairment

provision is made)

-6031886.26

Details of government subsidies recorded into currentprofits and loss（except such government subsidy closelyrelated to the company’s normal business operation

meeting the regulation of national policy and enjoyed

constantly in certain quota or quantity according to a

16562376.50

certain standard）

Other non-operating revenue and expenditure other than

above items

707688.34

Less: Impact of income tax 2809544.65

Impact of minority interests (after tax) 37130.61

Total 8391503.32 --

For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on informationdisclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurringprofit and loss items as illustrated in “the Explanatory Announcement No.1 on information disclosure for CompaniesOffering their Securities to the Public-Non-recurring Profits and Losses” which have been defined as recurring profits

and losses it is necessary to explain the reason.

□ Applicable √ Not applicableNone of Non-recurring profit and loss items recognized as recurring profit and loss items as defined by “the Explanatory

Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurringProfits and Losses” in the report period.II Total Number of Shareholders and Shareholding of Top 10 Shareholders

1. Total number of common shareholders preferred shareholders whose voting rights restored and

shareholding of top 10 shareholders

Unit: share

Total number of common

shareholders at the end of the

reporting period

51611

The total number of

preferred shareholders

voting rights restored at the

end of the reporting period

(if any)

0

Shareholding by Top 10 shareholders

Name of the

shareholder

Nature of

shareholder

Proportion

of shares

held

Quantity of

shares

Amount of

restricted shares

held

Number of share pledged/frozen

State of share Quantity

Benxi Steel &

Iron (Group)

Co. Ltd.

State-owned legal

person

62.17% 2409628094

Pledged 1109545000

Frozen 102100000

CCB Principal

Asset

Management –

ICBC – CR

Trust – CR

Others 4.77% 184842883

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

Others 4.77% 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

Liaoning

Provincial

Transportation

Investment

Group Co. Ltd.State-owned legal

person

4.33% 167765783

CR Yuanta

Fund

Management –

Huatai

Securities – CR

Yuanta Fund

Runhong

Xingsheng

Collective

Assets

Management

Plan

Others 0.34% 12990123

Fang Lei Domestic natural 0.28% 10885300

person

Zhang Peng

Domestic natural

person

0.21% 8287900

VANGUARD

EMERGING

MARKETS

STOCK

INDEX

Overseas legal

person

0.21% 8157311

Chen Jinhong

Domestic natural

person

0.19% 7500375

Shareholding of top 10 shareholders of unrestricted shares

Name of the shareholder

Number of non-restricted common shares held

at the period-end

Category of shares

Category of

shares

Quantity

Benxi Steel & Iron (Group) Co.

Ltd.

2409628094

Common shares

in RMB

2409628094

CCB Principal Asset Management –

ICBC – CR Trust – CR Trust · Xing

Sheng No. 5 Collective Fund Trust

Plan

184842883

Common shares

in RMB

184842883

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

184842883

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

184842883

Liaoning Provincial Transportation

Investment Group Co. Ltd.

167765783

Common shares

in RMB

167765783

CR Yuanta Fund Management –

Huatai Securities – CR Yuanta Fund

Runhong Xingsheng Collective

Assets Management Plan

12990123

Common shares

in RMB

12990123

Fang Lei 10885300

Common shares

in RMB

10885300

Zhang Peng 8287900

Common shares

in RMB

8287900

VANGUARD EMERGING

MARKETS STOCK INDEX

8157311

Foreign shares

placed in

8157311

FUND domestic

exchange

Chen Jinhong 7500375

Common shares

in RMB

7500375

Related-parties or acting-in-concert

parties among the above-mentioned

shareholders

It is unknown to the Company whether there is any related connection or action-

in-concert parties among the top 10 un-restricted shareholders.Shareholders among the top 10

participating in securities margin

trading (if any)

Benxi Steel & Iron (Group) Co. Ltd. holds 2170628094 shares of the company

through an ordinary securities account and holds 239000000 shares through the

investor's credit securities account therefore it holds a total of 2409628094

shares.

CR Yuanta Fund Management – Huatai Securities – CR Yuanta Fund Runhong

Xingsheng Collective Assets Management Plan holds 12990123 shares through

the investor's credit securities account.

Fang Lei holds 10885300 shares through the investor's credit securities account.

Zhang Peng holds 8287900 shares through the investor's credit securities account.Whether top ten common shareholders or top ten common shareholders with unrestricted shares carried out any buy-back

agreement dealing in the reporting period.□ Yes √ No

Top ten common shareholders or top ten common shareholders with unrestricted shares did not carry out buy-back

agreement dealing in the reporting period.

2. Number of total preferred shareholders and preferred shares hold by Top 10 preferred shareholders

□ Applicable √ Not applicable

III Important Events

Ⅰ. Major Changes in Financial Data and Financial Index and Reasons

√ Applicable □ Not applicable

? Significant changes and reasons in major accounting data financial indicators which changed over 30%

compared to the consolidated financial statement at the beginning of the year

1. Statement of Financial Position

Increase /

Decrease

Reasons

Other current assets 52% Due to the increase of purchase of financing products.

Construction in progress 31% Due to the increase of construction in progress.

Current tax liabilities 97%

Due to the increase of unpaid value-added tax at the

end of the period.Non-current liabilities due within

one year

-79%

Due to the long-term loans converted into borrowings

due within one year.Long-term payables 41% Due to the increase of lease payment.Special reserves 2208%

Due to the increase in the unused amount of the safety

production cost in this period.? Significant changes and reasons in major accounting data financial indicators which changed over 30%

compared to the consolidated financial statement of the first quarter of 2020

2. Statement of comprehensive

income

Increase /

Decrease

Reasons

Operating income 30%

Due to the increase of settlement compared to the

comparable period.Tax and surcharges 101%

Due to the increase of value added tax during the

current period.Income tax expenses 15605%

Due to the increase of income tax paid during the

current period.

3. Statement of cash flows

Increase /

Decrease

Reasons

Tax rebate received 178%

Due to the increase of export tax rebate during the

current period.

Cash paid for goods and services 62%

Due to the increase of cash paid for goods and services

during the period

Cash paid for all types of taxes -33%

Due to the decrease of value added tax payment during

the period.

Cash paid for acquisition of fixed

assets intangible assets and other

long-term assets

88%

Due to the increase of cash paid for acquisition of

fixed assets intangible assets and other long-term

assets

Cash received from borrowings -31% Due to the decrease of cash received from the loan

II. Progress and influence of significant events as well as the analysis and explanation on

solutions

□ Applicable √ Not applicable

Progress in the implementation of share repurchase

□ Applicable √ Not applicable

Progress in the implementation of the reduction of shareholding shares by means of centralized bidding

□ Applicable √ Not applicable

III. The Under-Fulfillment Commitments by the End of the Period Made by Actual Controller

Acquirer Director Supervisor Senior Management Personnel and other Related Parties.

□ Applicable √ Not applicable

There is no under-fulfillment commitment by the end of the period made by actual controller acquirer director supervisor

senior management personnel and other related parties.IV. Investment in Securities

1. Investment in Securities

□ Applicable √ Not applicable

There are no securities investments in the reporting period.

2. Investment in Derivatives

□ Applicable √ Not applicable

There is no investment in derivatives in the reporting period.V. Progress of Investment Projects with Raised Funds

√ Applicable □ Not applicable

1. Funds raised by non-public offering of shares

As of the end of the reporting period the company used a total of RMB 3278.59 million to raise funds and the unused

amount was RMB 684.38 million of which the balance of supplementary working capital was RMB 660 million and

the balance of the account of raised funds was RMB 24.38 million.

2. Public issuance of convertible bonds to raise funds

As of the end of the reporting period the company actually used the raised funds of RMB 2463.52 million the unused

amount of the company's raised funds was 4299.95 million of which the supplementary working capital balance was

4180 million and the raised funds account balance was 119.95 million.

VI. Forecast of Business Performance from Jan-Jun 2021

A warning and explanation of the reason for predicting that the cumulative net profit from the beginning of the year to

the end of the next reporting period may be a loss or a significant change compared with the same period of the

previous year

□ Applicable √ Not applicable

VII. Major Contracts for Daily Operations

□ Applicable √ Not applicable

VIII. Entrusted Financial Management

□ Applicable √ Not applicable

There is no entrusted financial management in the reporting period.IX. Violation of Regulations in Provision of External Guaranty

□ Applicable √ Not applicable

There is no violation of regulations in provision of external guaranty during the reporting period.X. Illustrations of Non-Operating Occupation of Funds by the Controlling Shareholder and

Related Parties

□ Applicable √ Not applicable

There is no non-operating occupation of funds by the controlling shareholder and related parties.XI. Registration form of Activities such as Research Communication Interview in this

Reporting Period

□ Applicable √ Not applicable

There is no researches visits and interviews received in the reporting period.

Ⅳ Financial Statement

Ⅰ. Financial Statement

1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Prepared by: Bengang Steel Plates Co. Ltd.

31 March 2021

Unit: RMB

Item Mar 31 2021 Mar 31 2020

Current asset

Cash at bank and on hand 9607066518.46 13126666915.26

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable

Accounts receivable 230497087.25 245217182.66

Accounts receivable financing 3671070272.83 4189977871.92

Prepayments 2171613244.35 2108044777.65

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance

contract

Other receivables 140438311.17 142101351.27

Including：Interest receivable

Dividend receivable

Redemptory financial assets for sale

Inventories 10030853051.80 9040065342.65

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 8401071869.02 5523646836.01

Total current assets 34252610354.88 34375720277.42

Non-current assets

Loan and advances issued

Debt investment

Other debt investments

Long-term receivables

Long-term equity investments 2788647.95 2742064.73

Other equity investments 1042024829.00 1042024829.00

Other non-current financial assets

Investment property

Fixed assets 25741811447.00 26284567956.44

Construction in progress 2404248545.89 1839933715.58

Productive biological assets

Oil and gas assets

Right-of-use assets 1526203644.87

Intangible assets 263290809.84 264932652.54

Development expenditure

Goodwill

Long-term deferred expenses

Deferred tax assets 202210114.90 201708932.84

Other non-current assets 1011481929.67 995840320.65

Total non-current assets 32194059969.12 30631750471.78

Total assets 66446670324.00 65007470749.20

Current Liabilities

Short-term loans 10066547000.00 10067731000.00

Loan from central bank

Loan from other financial institutions

Financial liability held for trading

Derivative financial liabilities

Notes payable 8209448728.97 9814149348.42

Accounts payable 4924702174.04 5914228256.82

Advance from customers

Contract liabilities 5742773223.88 4458671819.90

Financial assets sold for repurchase

Absorbed deposit and interbank deposit

Receiving from vicariously traded

securities

Receiving from vicariously sold securities

Employee benefits payable 30000623.55 25749485.25

Current tax liabilities 109067499.02 55302080.96

Other payables 659520679.27 709448301.92

Including：Interest payable

Dividend payable

Handling charges and commission

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 273845934.19 1308030361.43

Other current liabilities 746560519.10 579627336.58

Total current liabilities 30762466382.02 32932937991.28

Non-current liabilities

Standard insurance contract provision

Long-term loans 4507016155.89 3502934427.65

Bonds payable 5760237114.37 5752229339.52

Including: Preferred stock

Perpetual bond

Lease liabilities 1459524066.81

Long-term payables 1565647536.69 1114232362.74

Long-term employee benefits payable

Estimated liabilities

Deferred income 139254976.73 154451833.23

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 13431679850.49 10523847963.14

Total liabilities 44194146232.51 43456785954.42

Shareholders’ equity

Share capital 3875898553.00 3875371532.00

Other equity instruments 1145842934.77 1146290662.42

Including: Preferred stock

Perpetual bond

Capital reserve 12345322779.09 12343209847.29

Less: treasury shares

Other comprehensive income

Special reserves 6933776.25 300412.14

Surplus reserves 961105529.85 961105529.85

General risk reserve

Undistributed profits 3378618165.05 2692018405.40

Total equity attributable to equity holders

of the parent company

21713721738.01 21018296389.10

Non-controlling interests 538802353.48 532388405.68

Total shareholder's equity 22252524091.49 21550684794.78

Total of liabilities and owners’ equity 66446670324.00 65007470749.20

Legal Representative: Gao Lie Chief Financial Officer: Lin Dong Chief Accountant: Cong Yajuan

2. STATEMENT OF FINANCIAL POSITION

Unit: RMB

Items Mar 31 2021 Mar 31 2020

Current asset

Cash at bank and on hand 8699983948.15 11808618300.87

Financial assets held for trading

Derivative financial assets

Notes receivable

Accounts receivable 252514276.65 289865462.20

Accounts receivable financing 3468358869.69 4143431412.08

Prepayments 2189467531.08 2117204935.75

Other receivables 225617247.75 228180190.02

Including: Interest receivables

Dividend receivables

Inventories 7542794098.05 7420499172.20

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 8255070265.21 5437282088.94

Total current assets 30633806236.58 31445081562.06

Non-current assets

Debt investment

Other debt investments

Long-term receivables

Long-term equity investments 2016281902.16 2016281902.16

Other equity investments 1041624829.00 1041624829.00

Other non-current financial assets

Investment properties

Fixed assets 24281210747.86 24755665765.30

Construction in progress 2360656651.69 1798639941.58

Productive biological assets

Oil and gas assets

Right-of-use assets 1526203644.87

Intangible assets 141337369.08 142163903.40

Development expenditure

Goodwill

Long-term deferred expense

Deferred tax assets 98227517.87 98480706.23

Other non-current assets 1004117035.55 988475426.53

Total non-current assets 32469659698.08 30841332474.20

Total assets 63103465934.66 62286414036.26

Current liabilities

Short-term loans 9146547000.00 9107731000.00

Financial liabilities held for trading

Derivative financial liabilities

Notes payable 7104509084.22 8348607405.21

Accounts payable 5007719335.88 6280468684.34

Advance from customers

Contract liabilities 5985572402.79 5324357761.83

Employee benefits payable 28917395.58 23981010.53

Current tax liabilities 88955193.39 42514891.31

Other payables 337705358.21 368374954.61

Including：Interest payables

Dividend payables

Liabilities held for sale

Non-current liabilities due within one

year

273845934.19 1308030361.43

Other current liabilities 778124412.36 692166509.04

Total current liability 28751896116.62 31496232578.30

Non-current liability

Long term loans 4507016155.89 3502934427.65

Bonds payable 5760237114.37 5752229339.52

Including: Preferred stock

Perpetual bond

Lease liabilities 1459524066.81

Long-term payables 1558547658.07 1108412163.50

Long-term employee benefits payables

Estimated liabilities

Deferred income 139254976.73 154451833.23

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 13424579971.87 10518027763.90

Total liabilities 42176476088.49 42014260342.20

Shareholder’s equity:

Share capital 3875898553.00 3875371532.00

Other equity instruments 1145842934.77 1146290662.42

Including: Preferred stock

Perpetual bond

Capital reserves 11925171096.97 11923058165.17

Less: Treasury shares

Other comprehensive income

Special reserves 5702059.36 120972.62

Surplus reserves 961105529.85 961105529.85

Undistributed Profits 3013269672.22 2366206832.00

Total shareholder's equity 20926989846.17 20272153694.06

Total liabilities and shareholder’s

equity

63103465934.66 62286414036.26

3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Unit: RMB

Item Jan.-Mar. 2021 Jan.-Mar. 2020

1. Total operating income 15252265770.99 11728574704.88

Including: Operating income 15252265770.99 11728574704.88

Interest income

Premium earned

Income from handling charges

and commission

2. Total operating cost 14342475515.13 11541446733.82

Including: Operating cost 13850889731.59 10759718222.36

Interest expense

Expenditure for handling charges

and commission

Surrender value

Net expenditure for compensation

Net provision for insurance

contract appropriated

Bonus payment for policy

Reinsurance premium

Tax and surcharges 103677773.51 51561831.30

Selling and distribution expenses 21419092.78 315712277.98

General and administrative

expenses

197489963.37 185915642.34

Research and development

expenses

9276704.82 8416671.23

Financial expenses 159722249.06 220122088.61

Including: Interest expense 248978172.74 246021732.55

Interest income 114535834.58 72914133.66

Add: Other income 16562376.50 18439817.04

Income on investment（“-” for loss）

Including: Income from associates and

joint ventures

Income from derecognition of

financial assets measured at amortized cost

Exchange gains

Net exposure hedging

income （“-” for loss）

Gains from the change of

fair value （“-” for loss）

Credit impairment losses

（“-” for loss

1012753.44

Asset impairment losses

(losses are listed with "-")

-19207549.90Assets disposal gains（“-”for loss）

130675.05

3. Operational profit（“-” for loss） 927496060.85 186360238.20

Add: Non-operating income 873594.74 282400.25

Less: Non-operating expenses 6197792.66 6256330.10

4. Total profit (“-” for loss) 922171862.93 180386308.35

Less: Income tax expenses 229308801.27 1460096.83

5. Net profit（“-” for loss） 692863061.66 178926211.52

1.Classification by continuing operating

(1) Net profit from continuing

operation

692863061.66 178926211.52

(2) Net profit from discontinued

operation

2.Classification by ownership

(1) Net profit attributable to the

owners of parent company

686599759.65 177998575.36

(2) Net profit attributable to non-

controlling shareholders

6263302.01 927636.16

6. Other comprehensive income

Other comprehensive income

attributable to owners of the parent company

after tax

1.Other comprehensive income items

that will not be reclassified into gains/losses

(1) Re-measurement of defined

benefit plans of changes in net debt or net

assets

(2) Other comprehensive income

under the equity method investee cannot be

reclassified into profit or loss

(3) Changes in the fair value of other

equity investments

(4) Changes in the fair value of

Corporate credit risk

(5) Others

2.Other comprehensive income that will be

reclassified into profit or loss

(1) Share of other comprehensive

income of investee to be classified into profit

or loss afterwards under equity method

(2) Changes in the fair value of other

debt investments

(3) Changes in the fair value of financial

assets at fair value through other

comprehensive income

(4) Provision for credit loss of other debt

investments

(5) Cash flow hedge reserve

(6) Translation differences in foreign

currency financial statements

(7) Others

Other comprehensive income attributable to

non-controlling shareholders after tax

7. Total comprehensive income 692863061.66 178926211.52

Total comprehensive income

attributable to the owner of the parent

company

686599759.65 177998575.36

Total comprehensive income

attributable to non-controlling shareholders

6263302.01 927636.16

8. Earnings per share

1) Basic earnings per share 0.18 0.05

2) Diluted earnings per share 0.18 0.05

The current business combination under common control the net profits of the combined party before achieved: 0.00Yuan

net profit of previous period of the combined party realized: 0.00Yuan.Legal Representative: Gao Lie Chief Financial Officer: Lin Dong Chief Accountant: Cong Yajuan

4. STATEMENT OF COMPREHENSIVE INCOME

Unit: RMB

Item Jan.-Mar. 2021 Jan.-Mar. 2020

1. Total operating income 16037471133.52 12263353879.66

Less: Operating cost 14725993329.30 11478300497.98

Tax and surcharges 91690471.51 44905595.40

Selling and distribution expenses 19785727.27 186148487.15

General and administrative expenses 184199235.18 171553819.80

Research and development expenses 9276704.82 8416671.23

Financial expenses 155122738.36 212078788.48

Including: Interest expense 238120530.02 231068313.59

Interest income 108194621.37 65935368.22

Add: Other income 16122376.50 18009908.60

Income on investment（“-” for loss）

Including: Income from associates and

joint ventures

Income from derecognition of financial

assets measured at amortized cost

Net exposure hedging income（“-” for loss）

Gains from change of

fair value （“-” for loss）

Credit impairment loss（“-” for loss）

1012753.44

Asset impairment loss（“-” for loss）

-19207549.90Assets disposal gains（“-”for loss）

130675.05

2. Operational profit（“-” for loss） 868668732.07 160752378.32

Add: Non-operating income 617098.70 225882.20

Less: Non-operating expenses 6197792.66 6069498.66

3. Total profit (“-” for loss) 863088038.11 154908761.86

Less: Income tax expenses 216025197.89 -4801887.48

4. Net profit（“-” for loss） 647062840.22 159710649.34

1.Net profit from continuing operation 647062840.22 159710649.34

2.Net profit from discontinued operation

5.Other comprehensive income

1.Other comprehensive income items that

will not be reclassified into gains/losses

(1) Re-measurement of defined benefit

plans of changes in net debt or net assets

(2) Other comprehensive income under

the equity method investee cannot be reclassified

into profit or loss

(3) Changes in the fair value of other

equity investments

(4) Changes in the fair value of Corporate

credit risk

(5) Others

2.Other comprehensive income that will be

reclassified into profit or loss.

(1) Share of other comprehensive income

of investee to be classified into profit or loss

afterwards under equity method

(2) Changes in the fair value of other debt

investments

(3) Changes in the fair value of financial

assets at fair value through other comprehensive

income

(4) Provision for credit loss of other debt

investments

(5) Cash flow hedge reserve

(6) Translation differences in foreign

currency financial statements

(7) Others

6. Total comprehensive income 647062840.22 159710649.34

7. Earnings per share

1）Basic earnings per share

2）Diluted earnings per share

5. CONSOLIDATED STATEMENT OF CASH FLOWS

Unit: RMB

Item Jan.-Mar. 2021 Jan.-Mar. 2020

1.Cash flow from operating activities

Cash received from sale of goods or

rendering of services

9965304063.89 7864260416.76

Net increase of customers' deposit and

interbank deposit

Net increase of loan from central bank

Net increase of loans from other financial

institutions

Cash received for premium of original

insurance contract

Net cash received for reinsurance business

Net increase of deposit and investment of

the insured

Cash from receiving interest handling

charge and commission

Net increase of loans from Borrowing funds

Net increase of fund for buy-back business

Net increase of receiving from vicariously

traded securities

Tax rebate received 35592041.90 12824913.18

Other cash received relating to operating

activities

44680105.17 50831445.98

Subtotal of cash inflows from operating

activities

10045576210.96 7927916775.92

Cash paid for goods and services 10187896266.01 6282057238.94

Net increase of customer's loan and

advances

Net increase of deposit in central bank and

interbank deposit

Cash payment for original insurance

contract compensation

Net increase of capital lent

Cash for payment of interest handling

charge and commission

Cash for payment of policy bonus

Cash paid to and on behalf of employees 499525498.95 481908334.86

Cash paid for all types of taxes 304963305.18 458533701.03

Other cash paid relating to operating

activities

19661406.05 20570880.87

Subtotal of cash outflows from operating

activities

11012046476.19 7243070155.70

Net cash flows from operating activities -966470265.23 684846620.22

2. Cash flows from investing activities

Cash received from return on investments

Cash received from distribution of

dividends or profit

Net cash received from disposal of fixed

assets intangible assets and other long-term

assets

Net cash received from disposal of

subsidiary and other operating units

Other cash paid relating to investing

activities

Subtotal of cash inflows from investing

activities

Cash paid for acquisition of fixed assets

intangible assets and other long-term assets

420987681.05 224332091.19

Cash paid for acquisition of investments

Net increase of mortgage loan

Net cash received from subsidiary and other

operating unit

Other cash paid relating to investing

activities

3000000000.00

Subtotal of cash outflows from investing

activities

3420987681.05 224332091.19

Net cash flows from investing activities -3420987681.05 -224332091.19

3. Cash flows from financing activities

Proceeds from investment

Including: Proceeds from investment of

non-controlling shareholders of subsidiary

Proceeds from borrowings 1512381000.00 2197194000.00

Other proceeds relating to financing

activities

Subtotal of cash inflows from financing

activities

1512381000.00 2197194000.00

Cash repayments of borrowings 1556333658.67 2916611584.62

Cash payments for distribution of

dividends profit or interest expenses

266480285.50 263567150.15

Including: Cash paid to non-controlling

shareholders as dividend and profit by

subsidiaries

Other cash payments relating to financing

activities

Subtotal of cash outflows from financing

activities

1822813944.17 3180178734.77

Net cash flows from financing activities -310432944.17 -982984734.77

4. Effect of foreign exchange rate changes

on cash and cash equivalents

1302002.14 37441237.39

5. Net increase in cash and cash

equivalents

-4696588888.31 -485028968.35

Add: Cash and cash equivalents at the

beginning of the period

9229417595.12 13441414988.58

6. Cash and cash equivalents at the

ending of the period

4532828706.81 12956386020.23

6. STATEMENT OF CASH FLOWS

Unit: RMB

Item Jan.-Mar. 2021 Jan.-Mar. 2020

1. Cash flow from operating activities

Cash received from sale of goods or

rendering of services

9900871109.50 7801529586.28

Tax rebate received 15393055.96

Other cash received relating to operating

activities

35586079.84 39105003.15

Subtotal of cash inflows from operating

activities

9951850245.30 7840634589.43

Cash paid for goods and services 10159123025.48 6197815675.01

Cash paid to and on behalf of employees 477144855.89 459560419.78

Cash paid for all types of taxes 270877880.57 434526418.13

Other cash paid relating to operating 15425570.97 16129733.15

activities

Subtotal of cash outflows from operating

activities

10922571332.91 7108032246.07

Net cash flows from operating activities -970721087.61 732602343.36

2. Cash flows from investing activities

Cash received from return on investments

Cash received from distribution of

dividends or profit

Net cash received from disposal of fixed

assets intangible assets and other long-term

assets

Net cash received from disposal of

subsidiary and other operating units

Other cash received relating to investing

activities

Subtotal of cash inflows from investing

activities

Cash paid for acquisition of fixed assets

intangible assets and other long-term assets

412255336.94 218474831.02

Cash paid for acquisition of investments

Net cash paid for acquisition of subsidiary

and other operating unit

Other cash paid relating to investing

activities

3000000000.00

Subtotal of cash outflows paid for

investing activities

3412255336.94 218474831.02

Net cash flows from investing activities -3412255336.94 -218474831.02

3. Cash flows from financing activities

Proceeds from investment

Cash received from borrowings 1412381000.00 1957194000.00

Other cash received relating to financing

activities

Subtotal of cash inflows from financing

activities

1412381000.00 1957194000.00

Cash repayments of borrowings 1421333658.67 2676611584.62

Cash payments for distribution of

dividends profit or interest

252542952.15 249495900.16

Other cash payments relating to financing

activities

Subtotal of cash outflows from financing

activities

1673876610.82 2926107484.78

Net cash flows from financing activities -261495610.82 -968913484.78

4. Effect of foreign exchange rate changes

on cash and cash equivalents

1300453.72 33421536.16

5. Net increase in cash and cash

equivalents

-4643171581.65 -421364436.28

Add: Cash and cash equivalents at the

beginning of the period

8897859003.60 13029616298.47

6. Ending balance of cash and cash

equivalents

4254687421.95 12608251862.19

Ⅱ. Adjustment of Financial Statement

1. Adjustment to the financial statement towards beginning balance due to the first-time implementation of new

leasing standards from 2021.

√ Applicable □ Not applicable

Whether to adjust the balance sheet account at the beginning of the year

√ Applicable □ Not applicable

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unit: RMB

Item 31 December 2020 1 January 2021 Adjustment amount

Current assets

Cash at bank and on hand 13126666915.26 13126666915.26

Account receivable 245217182.66 245217182.66

Accounts receivable financing 4189977871.92 4210303818.58

Prepayments 2108044777.65 1842668037.12

Other receivable 142101351.27 165329297.77

Inventories 9040065342.65 9043886183.05

Other current assets 5523646836.01 5523520390.81

Total current assets 34375720277.42 34157591825.25

Non-current assets

Long-term equity investments 2742064.73 2788647.95

Other equity investments 1042024829.00 1042024829.00

Fixed assets 26284567956.44 26284567956.44

Construction in progress 1839933715.58 1839933715.58

Right-of-use assets 1541868510.81 1541868510.81

Intangible assets 264932652.54 264932652.54

Deferred tax assets 201708932.84 200866214.95

Other non-current assets 995840320.65 1237539145.81

Total non-current assets 30631750471.78 32414521673.08 1541868510.81

Total assets 65007470749.20 66572113498.33 1541868510.81

Current Liabilities

Short-term loans 10067731000.00 10067731000.00

Notes payable 9814149348.42 9834475295.08

Accounts payable 5914228256.82 5914228256.82

Contract liabilities 4458671819.90 4458671819.90

Employee benefits payable 25749485.25 25749485.25

Current tax liabilities 55302080.96 55301055.34

Other payables 709448301.92 708349201.31

Non-current liabilities due within

one year

1308030361.43 1308030361.43

Other current liabilities 579627336.58

Total current liabilities 32932937991.28 32952163811.71

Non-current liabilities

Long-term loans 3502934427.65 3502934427.65

Bonds payables 5752229339.52 5752229339.52

Lease liabilities 1541868510.81 1541868510.81

Long-term payables 1114232362.74 1114232362.74

Deferred income 154451833.23 154451833.23

Total non-current liabilities 10523847963.14 12065716473.95 1541868510.81

Total liabilities 43456785954.42 45017880285.66 1541868510.81

Shareholders' equity:

Share capital 3875371532.00 3875371532.00

Other equity instruments 1146290662.42 1146290662.42

Capital reserve 12343209847.29 12343209847.29

Special reserves 300412.14 300412.14

Surplus reserves 961105529.85 961105529.85

Undistributed profits 2692018405.40 2695566823.29

Total equity attributable to equity

holders of the parent company

21018296389.10 21021844806.99

Non-controlling interests 532388405.68 532388405.68

Total shareholder's equity 21550684794.78 21554233212.67

Total of liabilities and owners’

equity 65007470749.20 66572113498.33 1541868510.81

Illustration of adjustment

STATEMENT OF FINANCIAL POSITION

Unit: RMB

Item 31 December 2020 1 January 2021 Adjustment amount

Current assets

Cash at bank and on hand 11808618300.87 11808618300.87

Account receivable 289865462.20 289865462.20

Accounts receivable financing 4143431412.08 4143431412.08

Prepayments 2117204935.75 1851828195.22

Other receivable 228180190.02 251408136.72

Inventories 7420499172.20 7420679014.84

Other current assets 5437282088.94 5437282088.94

Total current assets 31445081562.06 31203112610.87

Non-current assets

Long-term equity investments 2016281902.16 2016281902.16

Other equity investments 1041624829.00 1041624829.00

Fixed assets 24755665765.30 24755665765.30

Construction in progress 1798639941.58 1798639941.58

Right-of-use assets 1541868510.81 1541868510.81

Intangible assets 142163903.40 142163903.40

Deferred tax assets 98480706.23 98548237.73

Other non-current assets 988475426.53 1230174251.69

Total non-current assets 30841332474.20 32624967341.67 1541868510.81

Total assets 62286414036.26 63828079952.54 1541868510.81

Current liabilities

Short-term loans 9107731000.00 9107731000.00

Notes payable 8348607405.21 8348607405.21

Accounts payable 6280468684.34 6280468684.34

Contract Liabilities 5324357761.83 5324357761.83

Employee benefits payable 23981010.53 23981010.53

Current tax liabilities 42514891.31 42514891.31

Other payables 368374954.61 368374954.61

Non-current liabilities due within

one year

1308030361.43 1308030361.43

Other current liabilities 692166509.04

Total current liabilities 31496232578.30 31496232578.30

Non-current liabilities

Long term loans 3502934427.65 3502934427.65

Bonds payable 5752229339.52 5752229339.52

Lease liabilities 1541868510.81 1541868510.81

Long-term payables 1108412163.50 1108412163.50

Deferred income 154451833.23 154451833.23

Total non-current liabilities 10518027763.90 12059896274.71 1541868510.81

Total liabilities 42014260342.20 43556128853.01 1541868510.81

Shareholder’s equity:

Share capital 3875371532.00 3875371532.00

Other equity instruments 1146290662.42 1146290662.42

Capital reserves 11923058165.17 11923058165.17

Special reserves 120972.62 120972.62

Surplus reserves 961105529.85 961105529.85

Undistributed Profits 2366206832.00 2366004237.47

Total shareholder's equity 20272153694.06 20271951099.53

Total liabilities and

shareholder’s equity

62286414036.26 63828079952.54 1541868510.81

Illustration of adjustment

2. Illustration of the first implementation of the new lease standards retrospective adjustment towards the

previous data from 2021.

□ Applicable √ Not applicable

Ⅲ. Audit report

Whether the first quarter report is audited

□ Yes √ No

The first quarter report is not audited.