Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Stock Code: 000761 Abbreviation: Bengang Bancai Announcement No.：2021-065

Bengang Steel Plates Co. Ltd.Third Quarter Report 2021

The Company and all members of the Board of Directors guarantee that the information

disclosed is true accurate and complete and there are no misrepresentations or misleading

statements or material omission.Important Notice:

1. 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.

2. The person in charge of the company the person in charge of accounting work and the person in

charge of the accounting organization (accounting officer) hereby confirm that the financial report

in this quarterly report is true accurate and complete.

3. Whether the third quarter report is audited

□ Yes √ No

1Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

I. Summary of Financial Index

1. Summary of Accounting data and Financial index

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

□ Yes √ No

Increase or decrease From the beginning of Increase or decrease over

This reporting period over the same period this year to the end of the same period of the

of the previous year this reporting period previous year

Operating income（RMB） 22839272300.53 80.30% 61427400512.67 76.25%

Net profit attributable to the

shareholders of the listed company 1568670728.28 5334.49% 3777468896.19 1232.40%（RMB）

Net profit after deducting of

non-recurring gain/loss attributable

1564675127.0231395.92%3763817375.841437.17%

to the shareholders of listed

company（RMB）

Net Cash flow generated by

————1543820687.38-208.33%

business operation（RMB）

Basic earn ings per

0.3812245.09%0.921214.29%

share(RMB/Share)

Diluted earnings per

0.3812245.09%0.921214.29%

share(RMB/Share)

Weighted average net assets yield 6.83% 16.32% 16.46% 15.09%

Increase or decrease at the end of

At the end of the current

At the end of previous year this reporting period over the

period

previous year

Total assets（RMB） 67252482643.32 65007470749.20 3.45%

Net assets attributable to

shareholders of the listed company 23799726515.82 21018296389.10 13.23%（RMB）

2. Items and amount of non-recurring profit and loss

√ Applicable □ Not applicable

Unit: Yuan

From the beginning of the year

Items This reporting period Notes

to the end of the current period

Profit or loss from d isposal of

-11376424.23-33648474.64

non-current assets (including the

2Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

write-off part for which assets

impairment provision is made)

Details of government subsidies

recorded into current profits and loss

（except such government subsidyclosely related to the company’s normal

16147275.0048806758.34

business operation meeting the

regulation of national policy and enjoyed

constantly in certain quota or quantityaccording to a certain standard）

Other non-operating revenue and

566515.703122051.43

expenditure other than above items

Less: Impact of income tax 1334341.62 4570083.78

Impact of minority interests (after

7423.5958731.00

tax)

Total 3995601.26 13651520.35 --

Other circumstances can be defined as non-recurring profit and loss:

□ Applicable √ Not applicable

There is no other circumstances can be defined as non-recurring profit and loss.For the Company’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on informat iondisclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profitand loss items as illustrated in “the Explanatory Announcement No.1 on informat ion disclosure for Companies Offering theirSecurities to the Public -Non-recurring Profits and Losses” which have been defined as recurring profits and losses it is necessary

to exp lain the reason.□ Applicable √ Not applicableNone of Non-recurring profit and loss items recognized as recurring profit and loss items as defined by “the ExplanatoryAnnouncement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits andLosses” in the report period.

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

√ Applicable □ Not applicable

· Items and reasons for the changes of more than 30% compared with the beginning of the year in the

consolidated statement

Increase /

1. Statement of Financial Position Reasons

Decrease

Due to the increase of accounts receivable

Accounts receivable financing 49%

received during the current period.

3Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Due to the increase of construction in

progress that did not meet the conditions of

Construction in progress 42%

transferring to fixed assets at the end of the

period.Due to the decrease of notes payable issued

Notes payables -44%

during the current period.Contract liabilities 61% Due to the increase of contract liabilities.Due to the increase of employee benefits

Employee benefits payables 147%

payables during the current period.Due to the increase of VAT payable at the

Tax payables 724%

end of this period.Due to the increase of dividend payables

Other payables 246%

during the current period.Due to the decrease of non-current liabilities

Non-current liabilities due within

-96% due within one year during the current

one year

period.Due to the increase of output VAT waiting to

Other current liabilities 61%

be claimed during the current period.Due to the increase of lease payment during

Long-term payables 47%

the current period

Due to the deferred income has been fully

Deferred income -31%

amortized during the current period.Due to the increase of unpaid safety

Special reserves 7334%

production fee during the current period.Due to the increase of profit during the

Undistributed profit 67%

current period.· Items and reasons for the changes of more than 30% compared to January to September 2020 in the

consolidated financial statements

Increase /

2. Statement of comprehensive income Reasons

Decrease

Due to the increase of the sales price of stee l

Operating income 76%

products during the current period.Due to the increase of the price of raw

Operating cost 68%

materials during the current period.Due to the increase of VAT during the

Tax and surcharges 158%

current period.

4Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

According to the new revenue standard the

product freight included in the sales

Selling and distribution expenses -89%

expenses is listed in the operating cost

during the current period.Due to the increase of bonds interest

Financial expenses 52% payables and decrease of exchange income

during the current period.Due to the increase of financing income

Income on investment 2615%

during the current period.Due to the decrease of recovery of bad debt

Expected credit loss -58% during the current period compared to the

previous period.Due to the decrease in the reversal of

inventory impairment provision in the

Asset impairment loss -80%

current period compared with the previous

period.Due to the decrease in assets sold during the

Assets disposal gains -67%

current period

Due to the increase of other non-operating

Non-operating income 173%

income

Due to the increase of losses arose from

Non-operating expenses 74%

fixed assets scrapping

Due to the increase of profit during the

Income tax expenses 3960%

current period.Increase /

3. Statement of cash flows Reasons

Decrease

Cash received from sale of goods or Due to the increase of cash received for goods

62%

rendering of services and services during the current period.Due to the decrease of cash received of tax

Tax rebate received -82%

rebate during the current period.Due to the increase of cash paid for goods and

Cash paid for goods and services 44%

services during the current period.Due to the increase of payment of all types of

Cash paid for all types of taxes 192%

taxes.Cash received of borrowings -60% Due to the decrease of borrowings.Due to the decrease of cash paid for debt

Cash repayments of borrowings -48%

repayment.

5Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

II. Shareholders Information

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

restored and shareholding of top 10 shareholders

Unit: Share

The total number of preferred

Total number of common

shareholders whose voting rights has

shareholders at the end of the 62443 0

been restored at end of the reporting

reporting period

period（if any）

Shareholding by Top 10 shareholders

Amount of Number of share pledged/frozen

Name of the Nature of Proportion of Quantity of

restricted shares

shareholder shareholder shares held shares State of share Quantity

held

State-owne Pledged 1545545000

Benxi Steel & Iron

d legal 58.65% 2409628094

(Group) Co. Ltd. Frozen 108326179

person

State-owne

Bengang Group

d legal 17.95% 737371532

Co. Ltd.person

Domestic

Zhang Wenyou natural 0.47% 19149967

person

Domestic

Lyu Ruijun natural 0.37% 15005100

person

MORGAN

STANLEY & CO. Overseas

0.32%12999919

INTERNATIONA legal person

L PLC

Hong Kong

Securities Overseas

0.30%12281180

Clearing Company legal person

Ltd.State-owne

Huatai Securities

d legal 0.28% 11429581

Co. Ltd.person

Domestic

Mao Weisong natural 0.22% 9212619

person

China Merchants Others 0.19% 7857460

6Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Bank – Hua’an

Anhua Flexib le

Allocation of

Mixed Securit ies

Investment Funds

China

Construction Bank

– Huaxia

Advantage Others 0.18% 7528266

Growth Mixed

Securities

Investment Fund

Shareholding of top 10 shareholders of unrestricted shares

Number of non-restricted common shares held at the Category of shares

Name of the shareholder

period-end Category of shares Quantity

Benxi Steel & Iron (Group) Common shares in

24096280942409628094

Co. Ltd. RMB

Common shares in

Bengang Group Co. Ltd. 737371532 737371532

RMB

Common shares in

Zhang Wenyou 19149967 19149967

RMB

Common shares in

Lyu Ruijun 15005100 15005100

RMB

MORGAN STANLEY & CO. Overseas listed

1299991912999919

INTERNATIONAL PLC foreign share

Hong Kong Securities Clearing Common shares in

1228118012281180

Company Ltd. RMB

Common shares in

Huatai Securities Co. Ltd. 11429581 11429581

RMB

Common shares in

Mao Weisong 9212619 9212619

RMB

China Merchants Bank –

Hua’an Anhua Flexible Common shares in

78574607857460

Allocation of Mixed Securities RMB

Investment Funds

China Construction Bank –

Huaxia Advantage Growth Common shares in

75282667528266

Mixed Securities Investment RMB

Fund

Related-parties or Benxi Steel & Iron (Group) Co. Ltd. and Bengang Group Co. Ltd. are related parties and

7Bengang Steel Plates Co. Ltd. Third Quarter Report 2021acting-in-concert parties among action-in-concert parties as defined in “Measures for the Administration of the Takeover of Listedthe above-mentioned Companies” . It is unknown to the Company whether there is any other related parties orshareholders action-in-concert parties as defined in “Measures for the Administration of the Takeover of ListedCompanies”among the above-mentioned shareholders.Bengang Group Co. Ltd. holds 182842883 shares of the company through an ordinary

securities account and holds 554528649 shares through asset management plan therefore it

Shareholders among the top 10

holds a total of 737371532 shares. Zhang Wenyou holds 19149967 shares of the company

participating in securit ies

through an investor's credit securities account. Lyu Ruijun holds 5100 shares of the company

marg in trading (if any)

through an ordinary securities account and holds 15000000 shares of the company through an

investor's credit securities account.

2. Total Number of Preferred Shareholders and Shareholding of Top 10 Preferred

Shareholders

□ Applicable √ Not applicable

III. Other Major Events

√ Applicab le □ Not applicable

On July 15 2021 the Company's indirect controlling shareholder Bengang Group Co. Ltd. and

Liaoning Provincial Engineering Consulting Group Co. Ltd. Liaoning Provincial Urban and Rural

Construction Group Co. Ltd. and Liaoning Rongda Investment Co. Ltd. signed the "Trust Beneficial

Right Free Transfer Agreement" the Provincial Engineering Consulting Group the Provincial Urban

and Rural Construction Group and Liaoning Rongda transferred the relevant trust beneficiary rights

held by them to Bengang Group Co. Ltd. for free. After the completion of this transfer Bengang

Group and its action-in-concerts party Benxi Steel and Iron (Group) Co. Ltd. held the Company’s

equity shares increased by 14.28% to a total of 76.30%. For details please refer to the "Reminder

Announcement of Bengang Steel Plates Co. Ltd. on Changes in Shareholders' Equity" disclosed on the

designated information disclosure media by the Company on July 17 2021.On July 30 2021 the Company’s indirect controlling shareholder Bengang Group Co. Ltd. andLiaoning Communications Investment Co. Ltd. signed the “Listed Company Shares Free TransferAgreement”. Liaoning Communications Investment Co. Ltd. transferred 182842883 shares of the

Company to Bengang Group for free. After this transfer Bengang Group and its action-in-concerts

party Benxi Steel and Iron (Group) Co. Ltd. held the Company’s equity shares increased by 4.71% to a

total of 81.00%. For details please refer to the "Reminder Announcement of Bengang Steel

Plates Co. Ltd. on the Gratuitous Transfer of Part of the State-owned Equity and Changes in

Shareholders' Equity" disclosed on the designated information disclosure media by the Company on

July 31 2021.On August 16 2021 the indirect controlling shareholder of the Company completed the above two

registration procedures for free transfer. Bengang Group directly holds 182842883 shares of the

Company accounting for 4.71% of the Company’s total share capital through CCB Fund-Industrial

and Commercial Bank of China -China Resources Shenzhen Investment-China Resources Trust

8Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Xingsheng No. 5 Collective Fund Trust Plan China Life Security Fund-Industrial and Commercial

Bank of China-China Life Security-Huaxin Trust Dingzeng No. 10 Asset Management Plan Beixin

Ruifeng Fund-China Merchants Bank-Beixin Ruifeng Fund Fengqing No. 229 asset management plan

indirectly holds 554528649 shares of the Company accounting for 14.28% of the Company’s total

share capital and holding 2409628094 shares of the Company through its holding subsidiary Benxi

Steel and Iron (Group) Co. Ltd. accounting for 62.02% of the Company's total share capital. The

shares held by Bengang Group and Benxi Steel and Iron in the Company account for a total of 81.00%

of the Company's issued shares. For details please refer to the "Announcement on Completion of

Transfer Registration for Free Transfer of State-Owned Shares of Company Shareholders" disclosed by

the Company on the designated information disclosure media on August 20 2021.On April 15 2021 the company received a notice from the indirect controlling shareholder Bengang

Group Co. Ltd. that it was informed that Ansteel Group Co. Ltd. is planning to reorganize the

Bengang Group which may lead to changes in the company's control rights. The reorganization is still

in the planning stage and the approval of relevant departments is still required after the plan is

finalized. For details please refer to the "Indicative Announcement on the Strategic Restructuring of

the Indirect Controlling Shareholder Bengang Group Co. Ltd." published on the designated

information disclosure media by the company on April 15 2021.On August 18 2021 the State-owned Assets Supervision and Administration Commission of the State

Council and the People's Government of Liaoning Province jointly issued a notice agreeing that

Ansteel Group Co. Ltd. will reorganize Bengang Group Co. Ltd. and the Liaoning Provincial

State-owned Assets Supervision and Administration Commission will transfer 51% equity of Bengang

Group to Ansteel Group for free. The transfer still needs to perform the necessary procedures and there

is still uncertainty about whether the relevant approval can be obtained and whether the transfer can beimplemented smoothly. For details please refer to the Announcement “Approval by the State-ownedAssets Supervision and Administration Commission of the State Council and the People's Government

of Liaoning Province on the free transfer of 51% equity of Bengang Group by its indirect controllingshareholder” published on the designated information disclosure media by the company on August 19

2021".

On August 20 2021 the State-owned Assets Supervision and Administration Commission of the

People's Government of Liaoning Province indirect controlling shareholder of the company and with

80% of the Bengang Group’s share and Ansteel Group Co. Ltd. which is 100% owned by the

State-owned Assets Supervision and Administration Commission of the State Council signed the

agreement: "Agreement on the Gratuitous Transfer of State-owned Equity of Bengang Group Co. Ltd.between the State-owned Assets Supervision and Administration Commission of the People's

Government of Liaoning Province and Ansteel Group Co. Ltd.". According to the agreement the

State-owned Assets Supervision and Administration Commission of Liaoning Province will transfer its

51% equity in Bengang Group to Ansteel Group for free. After the completion of this transfer Ansteel

Group will become the controlling shareholder of Bengang Group. Ansteel Group indirectly controls

81.07% of the company’s shares through Bengang Group Benxi Iron and Steel (Group) Co. Ltd. andAnsteel Group Capital Holding Co. Ltd. For details please refer to relevant announcement “About theFree Transfer of 51% equity in Bengang Group from the State-owned Assets Supervision and

9Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Administration Commission of the People’s Government of Liaoning Province to Ansteel Group Co.Ltd. and Indicative Announcement of Ansteel Group Becoming the Company’s Indirect Contro llingShareholder”、“Condensed Statement of Changes in Equity”and“the Acquisition Report”published

on the designated information disclosure media on August 21 2021 and August 24 2021.On October 12 2021 the Company handled the business and commerce change registration procedures.Ansteel Group Co. Ltd. is the holding shareholder of Bengang Group Co. Ltd. and indirectly holds

the Company’s 76.67% shares through Bengang Group Co. Ltd. Benxi Steel and Iron (Group) Co.Ltd. and Ansteel Group Capital Holdings Co. Ltd. Benxi Steel and Iron (Group) Co. Ltd. holds 58.65%

of the Company’s share and is still the company's direct controlling shareholder. For details pleaserefer to “Announcement on the transfer of 51% equity of Bengang Group Co. Ltd. to Ansteel GroupCo. Ltd. for free from the State-owned Assets Supervision and Administration Commission of the

People's Government of Liaoning Province and change of business registration and Ansteel Group hasbecome the Company’s Indirect Controlling Shareholder” disclosed on the designated information

disclosure media by the Company on October 13 2021.IV. Quarterly Financial Statements

1. Financial Statements

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Prepared by: Bengang Steel Plates Co. Ltd.Unit: Yuan

th s t

Items Sep 30 2021 Dec 31 2020

Current assets:

Cash at bank and on hand 10080139668.54 13126666915.26

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable

Accounts receivable 228758480.20 245217182.66

Accounts receivable financing 6263850964.34 4189977871.92

Prepayments 2189540560.96 2108044777.65

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance

contract

Other receivables: 139699442.16 142101351.27

10Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

th s t

Items Sep 30 2021 Dec 31 2020

Including: Interest receivables

Dividend receivables

Redemptory financial assets for sale

Inventories 10942381569.72 9040065342.65

Contract assets

Assets classified as held for sale

Non-current assets due within one year

Other current assets 5648602000.48 5523646836.01

Total current assets 35492972686.40 34375720277.42

Non-current assets:

Loan and advances issued

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 3024013.88 2742064.73

Other equity instrument investments 1042024829.00 1042024829.00

Other non-current financial assets

Investment properties

Fixed assets 25278314427.01 26284567956.44

Construction in progress 2607076937.56 1839933715.58

Productive biological assets

Oil and gas assets

Right of use assets 1494873912.99 0.00

Intangible assets 299766591.44 264932652.54

Development expenditure

Goodwill

Long-term deferred expenses

Deferred tax assets 199553629.68 201708932.84

Other non-current assets 834875615.36 995840320.65

Total non-current assets 31759509956.92 30631750471.78

Total assets 67252482643.32 65007470749.20

Current Liabilities:

Short-term loans 7971523080.00 10067731000.00

11Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

th s t

Items Sep 30 2021 Dec 31 2020

Loan from central bank

Absorbed deposit and interbank deposit

Financial liabilities held for trading

Derivative financial liabilit ies

Notes payable 5538169802.42 9814149348.42

Accounts payable 5546537956.80 5914228256.82

Advance from customers

Contract Liabilit ies 7196202225.99 4458671819.90

Financial assets sold for repurchase

Deposits from customers and interbank

Acting trading securities

Acting underwriting securities

Employee benefits payable 35651981.96 25749485.25

Current tax liabilit ies 455898707.17 55302080.96

Other payables 2455666846.20 709448301.92

Including: Interest payables

Dividend payables

Handling charges and commission

payable

Reinsurance accounts payable

Liabilit ies held for sale

Non-current liabilit ies due within one

51947695.581308030361.43

year

Other current liabilities 935506289.38 579627336.58

Total current liabilities 30187104585.50 32932937991.28

Non-current liabilities:

Provision for insurance contract

Long-term loans 4579118668.08 3502934427.65

Bonds payable 4822914012.92 5752229339.52

Including: Preferred stock

Perpetual bond

Lease liab ilit ies 1561248844.56 0.00

Long-term payables 1633651296.25 1114232362.74

Long-term employee benefits payables

12Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

th s t

Items Sep 30 2021 Dec 31 2020

Estimated liabilit ies

Deferred income 107319194.89 154451833.23

Deferred tax liab ilities

Other non-current liab ilities

Total non-current liab ilit ies 12704252016.70 10523847963.14

Total liabilities 42891356602.20 43456785954.42

Shareholders’ equity:

Share cap ital 4108157357.00 3875371532.00

Other equity instruments 947914214.97 1146290662.42

Including: Preferred stock

Perpetual bond

Capital reserves 13272014325.94 12343209847.29

Less: treasury shares

Other comprehensive income

Special reserves 22331804.29 300412.14

Surp lus reserves 961105529.85 961105529.85

General risk reserves

Undistributed profits 4488203283.77 2692018405.40

Total equity attributable to equity holders of

23799726515.8221018296389.10

the parent company

Non-controlling interests 561399525.30 532388405.68

Total shareholder’s equity 24361126041.12 21550684794.78

Total liabilities and shareholder’s equity 67252482643.32 65007470749.20

Legal Representative: Gao Lie Person in charge of accounting: Lin Dong Accounting Dept. Leader: Li Xiaowei

(2) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM THE BEGINNING OF

THE YEAR TO THE END OF THE CURRENT REPORTING PERIOD

Unit: Yuan

Items The Current Period The Previous Period

1. Total operating income 61427400512.67 34851837404.98

Including: Operat ing income 61427400512.67 34851837404.98

Interest income

Premium earned

Income from handling charges

13Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

and commission

2. Total operating cost 56367721090.19 34609468735.28

Including: Operat ing cost 54691627964.85 32609871008.54

Interest cost

Expenditure for handling charges

and commission

Surrender value

Net expenditure for compensation

Net provision for insurance

contract appropriated

Bonus payment for policy

Reinsurance premium

Taxes and surcharges 365653671.57 141762794.46

Selling and distribution expenses 98415483.34 897523316.86

General and admin istrative

645762206.23581349923.65

expenses

Research and development

36192795.5529262450.81

expenses

Financial expenses 530068968.65 349699240.96

Including: interest expenses 815172965.12 700850334.78

Interest incomes 297771911.33 245883963.84

Add: Other incomes 48806758.34 57452382.09

Income on investment ("-" for loss) 2610325.33 106546.47

Including: Income from associates and

281949.1529304.00

joint ventures

Income from derecognition

of financial assets measured at amortised cost

Exchange Income ("-" for loss)Hedging income from net exposure (“-"for loss)Gains from the change in fair value (“-"for loss)Expected credit losses (“-" for loss) 2049977.83 4881916.63Asset impairment losses (“-" for loss) 6629442.12 33104544.46Assets disposal gains（“-” for loss） 130675.05 394334.81

14Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

3. Operating profit ("-" for loss) 5119906601.15 338308394.16

Add: Non-operating income 4758875.68 1744482.36

Less: Non-operating expenses 35285298.89 20275186.23

4. Total profit ("-" for loss) 5089380177.94 319777690.29

Less: Income tax expenses 1283381274.28 31610231.55

5. Net Profit ("-" for loss) 3805998903.66 288167458.74

(1) Classification by continuing

operating

1 Net profit from continuing

3805998903.66288167458.74

operation ("-" for loss)

2 Net profit from discontinued

operation ("-" for loss)

(2) Classification by ownership

1 Net profit attributable to the

3777468896.19283509289.10

owners of parent company

2 Net profit attributable to

28530007.474658169.64

non-controlling shareholders

6. Other comprehensive income after tax

Other comprehensive income attributable to

owners of parent company after tax

1) Other comprehensive income items

that will not be reclassified into gains/losses

(1) . Re-measurement of defined

benefit plans of changes in net debt or net

assets

(2) . Other comprehensive income

under the equity method cannot be reclassified

into profit or loss

(3). Changes of fair value of other

equity instrument investments

(4). Changes in the fair value of

the company's own credit risk

(5). Others

2) Other comprehensive income that will

be reclassified into profit or loss

(1) . Other comprehensive income

under the equity method can be reclassified

15Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

into profit or loss

(2). Gains and losses from fair

value changes of other debt investments

(3). Gains and losses resulting

from reclassificat ion of financial assets

recognised in other comprehensive income

(4). Credit impairment losses of

other debt investments

(5). Effective portion of gains or

losses from cash flow hedging

(6). Translation differences in

foreign currency financial statements

(7). Others

Other comprehensive income attributable to

non-controlling shareholders after tax

7. Total comprehensive income 3805998903.66 288167458.74

Total comprehensive income attributable

3777468896.19283509289.10

to owners of parent company

Total comprehensive income attributable

28530007.474658169.64

to non-controlling shareholders

8. Earnings per share:

1) Basic earn ings per share 0.92 0.07

2) Diluted earnings per share 0.92 0.07

The current business combination under common control the net p rofits of the combined party before achieved: Yuan net profit

of previous period of the combined party realized : Yuan.Legal Representative: Gao Lie Person in charge of accounting: Lin Dong Accounting Dept. Leader: Li Xiaowei

(3) CONSOLIDATED STATEMENT OF CASH FLOWS FROM THE BEGINNING OF THE YEAR TO

THE END OF THE CURRENT PERIOD

Unit: Yuan

Items The Current Period The Previous Period

1. Cash flow from operating activ ities:

Cash received from sale o f goods or

41226627487.1125444022450.66

rendering of services

Net increase of customers’ deposit and

interbank deposit

Net increase of loan from central bank

16Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

Net increase of loans from other

financial institutions

Cash received for premium of original

insurance contract

Net cash received for reinsurance

business

Net increase of deposit and investment

of the insured

Net increase of Financial assets at fair

value through profit or loss

Cash from receiving interest handling

charge and commission

Net increase of loans from other

financial institutions

Net increase of fund for buy-back

business

Tax rebate received 70165628.03 387294316.80

Other cash received relating to

149425573.60168025766.48

operating activities

Subtotal of cash inflow received from

41446218688.7425999342533.94

operation activities

Cash paid for goods and services 35777429779.80 24909229260.23

Net increase of customer’s loan and

advances

Net increase of deposit in central bank

and interbank deposit

Cash for payment of compensation for

original insurance contract

Net increase in funds lent

Cash for payment of interest handling

charge and commission

Cash for payment of policy bonus

Cash paid to and on behalf of

1636542380.281408629415.56

employees

Cash paid for all types of taxes 2215055970.80 758524302.98

Other cash paid relating to operating

273369870.48330588899.59

activities

17Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

Subtotal of cash outflow received from

39902398001.3627406971878.36

operation activities

Net cash flows generated from operating

1543820687.38-1407629344.42

activities

2. Cash flows from investing activities:

Cash received from return on

6100000000.00

investments

Cash received from d istribution of

2328376.18

dividends or profit

Net cash received from disposal of

fixed assets intangible assets and other 5030.00

long-term assets

Net cash received from disposal of

subsidiary and other operating units

Other cash paid relating to investing

activities

Subtotal of cash inflow received from

6102333406.18

investing activities

Cash paid for acquisition of fixed

assets intangible assets and other long-term 1792294739.50 1765038590.65

assets

Cash paid for acquisition of investments 6200000000.00

Net increase of mortgage loan

Net cash received from subsidiary and

other operating unit

Other cash paid relating to investing

activities

Subtotal of cash outflows from investing

7992294739.501765038590.65

activities

The net cash flow generated by investment

-1889961333.32-1765038590.65

activities

3. Cash flows from financing activities:

Proceeds from investment

Including: Proceeds from investment of

non-controlling shareholders of subsidiary

Proceeds from borrowings 3701853120.80 9297194000.00

Other proceeds relating to financing 6800000000.00

18Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

Items The Current Period The Previous Period

activities

Subtotal cash inflow received from financing

3701853120.8016097194000.00

activities

Cash repayments of borrowings 5980272540.16 11555411601.25

Cash payments for distribution of

875026918.89956166264.68

dividends profit or interest expenses

Including: Cash paid to non-controlling

shareholders as dividend and profit by

subsidiaries

Other cash payments relating to

43549783.25

financing activit ies

Subtotal of cash outflows from financing

6855299459.0512555127649.18

activities

The net cash flow generated by financing

-3153446338.253542066350.82

activities

4. Effect of foreign exchange rate changes on

-15919852.00-12482658.90

cash and cash equivalents

5. Net increase in cash and cash equivalents -3515506836.19 356915756.85

Add: Cash and cash equivalents at the

9229417595.1213441414988.58

beginning of the period

6. Cash and cash equivalents at the ending of

5713910758.9313798330745.43

the period

2. Adjustments of Financial Statements

(1) Adjustments of beginning balance due to the first-time implementation of new lease standard from 2021

√ Applicable □ Not applicable

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

√ Applicable □ Not applicable

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unit: yuan

s t st

Items Dec 31 2020 Jan 1 2021 Adjustment amount

Current assets:

Cash at bank and on hand 13126666915.26 13126666915.26

Settlement provisions

Capital lent

Financial assets held for trading

19Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

s t st

Items Dec 31 2020 Jan 1 2021 Adjustment amount

Derivative financial assets

Notes receivable

Accounts receivable 245217182.66 245217182.66

Accounts receivable financing 4189977871.92 4189977871.92

Prepayments 2108044777.65 2108044777.65

Premium receivable

Reinsurance accounts receivable

Receivable deposit for

reinsurance contract

Other receivables: 142101351.27 142101351.27

Including: Interest receivables 33685359.01

Dividend receivables

Redemptory financial assets for

sale

Inventories 9040065342.65 9040065342.65

Contract assets

Assets classified as held for sale

Non-current assets due within

one year

Other current assets 5523646836.01 5523646836.01

Total current assets 34375720277.42 34375720277.42

Non-current assets:

Loan and advances issued

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 2742064.73 2742064.73

Other equity instrument

1042024829.001042024829.00

investments

Other non-current financial assets

Investment properties

Fixed assets 26284567956.44 26284567956.44

Construction in progress 1839933715.58 1839933715.58

Productive biological assets

20Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

s t st

Items Dec 31 2020 Jan 1 2021 Adjustment amount

Oil and gas assets

Right of use assets 0.00 1541868510.81 1541868510.81

Intangible assets 264932652.54 264932652.54

Development expenditure

Goodwill

Long-term deferred expenses

Deferred tax assets 201708932.84 201708932.84

Other non-current assets 995840320.65 995840320.65

Total non-current assets 30631750471.78 32173618982.59

Total assets 65007470749.20 66549339260.01

Current Liabilities:

Short-term loans 10067731000.00 10067731000.00

Loan from central bank

Absorbed deposit and interbank

deposit

Financial liabilities held for

trading

Derivative financial liabilit ies

Note payables 9814149348.42 9814149348.42

Account payables 5914228256.82 5914228256.82

Advance from customers

Contract liab ilities 4458671819.90 4458671819.90

Financial assets sold for

repurchase

Deposits from customers and

interbank

Acting trading securities

Acting underwriting securities

Employee benefits payable 25749485.25 25749485.25

Current tax liabilit ies 55302080.96 55302080.96

Other payables 709448301.92 709448301.92

Including: Interest payables

Dividend payables

21Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

s t st

Items Dec 31 2020 Jan 1 2021 Adjustment amount

Handling charges and

commission payable

Reinsurance accounts payable

Liabilit ies held for sale

Non-current liabilit ies due within

1308030361.431346929023.4538898662.02

one year

Other current liabilities 579627336.58 579627336.58

Total current liabilities 32932937991.28 32971836653.30

Non-current liabilities:

Provision for insurance contract

Long-term loans 3502934427.65 3502934427.65

Bonds payable 5752229339.52 5752229339.52

Including: Preferred stock

Perpetual bond

Lease liab ilit ies 0.00 1502969848.79 1502969848.79

Long-term payables 1114232362.74 1114232362.74

Long-term employee benefits

payables

Estimated liabilit ies

Deferred income 154451833.23 154451833.23

Deferred tax liab ilities

Other non-current liab ilities

Total non-current liab ilit ies 10523847963.14 12026817811.93

Total liabilities 43456785954.42 44998654465.23

Shareholders’ equity:

Share cap ital 3875371532.00 3875371532.00

Other equity instruments 1146290662.42 1146290662.42

Including: Preferred stock

Perpetual bond

Capital reserves 12343209847.29 12343209847.29

Less: treasury shares

Other comprehensive income

Special reserves 300412.14 300412.14

Surp lus reserves 961105529.85 961105529.85

22Bengang Steel Plates Co. Ltd. Third Quarter Report 2021

s t st

Items Dec 31 2020 Jan 1 2021 Adjustment amount

General risk reserves

Undistributed profits 2692018405.40 2692018405.40

Total equity attributable to equity

21018296389.1021018296389.10

holders of the parent company

Non-controlling interests 532388405.68 532388405.68

Total shareholder’s equity 21550684794.78 21550684794.78

Total liabilities and shareholder’s

65007470749.2066549339260.01

equity

Notes:

(2) Retroactive adjustment due to the first time implementation of the new lease standards

□ Applicable √ Not applicable

3. Audit report

Whether the third quarter report is audited

□ Yes √ No

The third quarter report is not audited.Board of Directors of Bengang Steel Plates Co. Ltd.

23