Stock Code: 000761 200761 Abbreviation: Bengang Bancai Bengangban B Announcement No. : 2020-055

Summary of Semi-Annual Report 2020 of Bengang Steel

Plates Co. Ltd.I. Important Notice

This Semi-Annual Report Summary is taken from the full text of the Semi-Annual Report. Investors are advised to

carefully read the full text of the Semi-Annual Report published on the media designated by China Securities

Regulatory Commission in order to fully understand the Company’s operation results financial position and future

development plan.Other directors attending the Meeting for Semi-Annual Report deliberation except for the following

Name of director absent Title for absent director Reasons for absence Attorney

Non-standard auditor’s opinion

□ Applicable √Not applicable

Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the Board

during the reporting period

□Applicable √Not applicable

The Company plans not to distribute cash dividend or bonus shares and not to convert capital reserve into share capital.Plans for profit distribution on preference shares for the reporting period approved by the Board

□ Applicable √ Not applicable

II. Company Profile and Main Financial Index

1. Company profile

Stock abbreviation

Bengang Bancai Bengangban

B

Stock Code 000761、200761Stock exchange for listing Shenzhen Stock Exchange

Contact person and manner Board secretary Securities affairs Representative

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

Email bgbcdm@163.com bgbcclw@126.com

2. Main Accounting Data and Financial Index

Retrospective adjustment to or restatement of the accounting data for prior years by the Company due to change of

accounting policies and correction of accounting errors

□ Yes √ No

Unit: yuan

This reporting period

Same period in previous

year

Increase or decrease in this

reporting period over the

previous year

Operating income 22184537260.05 24102595167.14 -7.96%

Net profit attributable to the shareholders

of the listed company

254644204.33 453209615.76 -43.81%

Net profit attributable to the shareholders

of listed company after deducting

non-recurring gain/loss

239885472.54 481928450.94 -50.22%

Net cash flows generated by operating

activities

-151475707.08 984787005.67 -115.38%

Basic earnings per share 0.07 0.12 -41.67%

Diluted earnings per share 0.07 0.12 -41.67%

ROE 1.30% 2.35% -1.05%

At the end of this reporting

period

At the end of previous

reporting period

Increase or decrease at the

end of this reporting period

over the previous year

Total assets 62710402910.64 60731425193.90 3.26%

Net assets attributable to shareholders of

the listed company

19764576963.53 19487665261.17 1.42%

3. Number of shareholders and shareholding

Unit: Share

Total number of common

shareholders at the end of the

reporting period

54074

The total number of

preferred shareholders

voting rights restored at the

end of the reporting period (if

any)

0

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

Restricted shares held

Number of pledged or frozen

shares

Status Number

Benxi Steel &

Iron (Group)

Co. Ltd.

State-owned

legal person

62.11% 2407002394 0

Pledged 712545000

Frozen 102100000

CCB Principal

Asset

Management –

ICBC – CR

Trust – CR

Trust · Xing

Sheng No. 5

Collective Fund

Trust Plan

Others 4.77% 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

China Life AMP

Fund– ICBC –

China Life AMP

Others 4.77% 184842883

– Hua Xin Trust

Targeted

Additional

Shares Issuance

No. 10 Asset

Management

Plan

Liaoning

Provincial

Transportation

Investment

Group Co. Ltd.State-owned

legal person

4.74% 183785283

Fang Lei

Domestic

natural person

0.36% 14126600

Fang Huaiyue

Domestic

natural person

0.24% 9205501

Zhang Peng

Domestic

natural person

0.21% 8287900

VANGUARD

EMERGING

MARKETS

STOCK INDEX

FUND

Overseas legal

person

0.21% 8157311

Chen jinhong

Domestic

natural person

0.18% 7120375

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.Shareholders among the top 10

participating in securities margin

trading (if any)

Benxi Steel & Iron (Group) Co. Ltd. holds 2168022394 shares of the Company’s stock

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

security account totaling 2407002394 shares. Fang Lei holds 14126600 shares of the

Company’s stock through credit security account. Fang Huaiyue holds 9205501 shares of the

Company’s stock through credit security account. Zhang Peng holds 8287900 through credit

security account.

4. Changes of Controlling Shareholders and Substantial Controller

Change of holding shareholder

□ Applicable √ Not applicable

There was no change of holding shareholder in the reporting period.

Change of substantial controller

□ Applicable √ Not applicable

There was no change of substantial controller in the reporting period.

5. Total preferred shareholders of the Company and shares held by top ten shareholders

□ Applicable √ Not applicable

There was no Preferred Shares during the reporting period.

6. Information about the corporate bonds

Whether there exists any un-matured corporate bonds public issued and listed on the Stock Exchange or any matured

corporate bonds which the listed company failed to pay in full at the approval date of the Semi-Annual Report

No

III. Management Discussion and Analysis

1. General

Whether the Company needs to comply with the disclosure requirements for special industry

No

In the first half of 2020 the company's overall performance was generally outstanding production and management had

a new improvement and the reform tasks were solidly promoted. The main indicators achieved steady growth

including: 5.11 million tons of pig iron an increase of 352.8 thousand tons an increase of 7.41%; crude steel of 5.13

million tons an increase of 259.8 thousand tons an increase of 5.33%; hot rolled sheet of 5.87 million tons a decrease

of 232.1 thousand tons a decrease of 3.8%; cold rolled sheet of 2.78 million tons a decrease of 120.1 thousand tons a

decrease of 4.14%; special steel of 0.36 million tons an increase of 130 thousand tons an increase of 57.62%.

During the reporting period the company took "Overall Every Control and Clear" as the starting point carefully

organized special research and took multiple measures to reduce costs. The output of some varieties and the records of

daily and monthly production were continuously refreshed. A series of indicators have reached the best level in history.The quality of development has been significantly improved. Through the establishment of an all-round benchmarking

management system the coke ratio of plates into the furnace was 381kg in the first half of the year which is the best

level in history. The No. 7 caster of the plate steelmaking plant has realized the online narrowing function and the online

width adjustment of the chamfering mold reaching the domestic advanced level. The 2# pickling mill and silicon steel

pickling mill set the best operating record in history. The plate scrap mill matched the material type reasonably and the

number of straight batching hoppers created the highest records in a single day and a single month respectively.

2. Issues related to the financial report

(1) Changes in the accounting policy accounting estimation and measurement methods

1. Change of major accounting policy during the current reporting period

Implementation of the "Accounting Standards for Business Enterprises No. 14 - Revenue" (revised in 2017) (hereinafter

referred to as the "New Revenue Standards")

The Ministry of Finance revised the "Accounting Standards for Business Enterprises No. 14 - Revenue" in 2017. The revised

standard stipulates that the initial implementation of the standard should adjust the amount of retained earnings and other

related items in the financial statements at the beginning of the year based on the cumulative impact and no adjustments

should be made to comparable period information.The company implements the new revenue standard from January 1 2020. According to the standard the company only

adjusts the retained earnings at the beginning of 2020 and the amount of other related items in the financial statements for the

cumulative impact of contracts that have not been completed on the date of first implementation and the comparative

financial statements do not adjust. The major impact of the implementation of the regulation are as follows:

Change of accounting policy

content and reason

Affected items

January 1 2020

Consolidated Financial

statement

Parent company

financial statement

Reclassify advance from customers

to contract liabilities.

Advance from customers -4429821526.79 -5597707687.22

Contract liabilities 4429821526.79 5597707687.22

Compared with the previous revenue standards the impact of the implementation of the new revenue standards on the

relevant items for the period from January to June in 2020 is as follows:

Affected items

June 30 2020

Consolidated Financial statement

Parent company financial

statement

Contract liabilities 4658022515.99 5736618018.47

Advance from customers -4658022515.99 -5736618018.47

There is no impact to the items in the comprehensive income statement.

2. Change of accounting estimation

(1) The company’s principle for determining the applicable point of time for changes in accounting estimates: According to

Article 19 of the "Accounting Standards for Business Enterprises No. 4 - Fixed Assets" the enterprise should review the

useful life estimated net residual value and depreciation method of fixed assets at least at the end of each year. If the

estimated useful life is different from the original estimate the useful life of the fixed asset shall be adjusted.

(2) Major change of accounting estimate during the current reporting period

Change of accounting estimation

content and reason

Approval procedure

Date of

application

Affected items and amount

Content: The company adjusted

the useful life of some of the

fixed assets since January 1

2020.

Reason: At the end of 2019 the

company evaluated the actual

On January 31 2020 the

eighth meeting of the

company's eighth board of

directors reviewed and

approved the "Proposal on

Adjusting the Useful Life of

January 1

2020

Accumulative depreciation:

RMB -206452050.12;

Operating cost : RMB

-206452050.12.

Change of accounting estimation

content and reason

Approval procedure

Date of

application

Affected items and amount

condition and depreciation period

of fixed assets and believed that

the company’s production

equipment had a relatively high

level of equipment and technical

content and maintained good

conditions. The company’s

cumulative investment in

equipment maintenance costs

from 2010 to 2019 was RMB

11.959 billion. To make the

depreciation period of fixed

assets closer to the actual service

life it is necessary to adjust the

useful life of some fixed assets.

Certain Fixed Assets"

(2) Illustrations of retrospective restatement due to correction of significant accounting errors in the

reporting period

□ Applicable √ Not applicable

No major accounting errors within the reporting period that needs retrospective restatement for the Company.

(3) Illustrations of changes of the consolidation scope as compared with the financial report of previous

year

□ Applicable √ Not applicable

There was no change of the consolidation scope during the reporting period.