Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Stock Code: 000761 Abbreviation: Bengang Bancai Announcement No.：2022-028

Bengang Steel Plates Co. Ltd.First Quarter Report 2022

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. First Quarter Report 2022

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

Current reporting Previous reporting

Changes (+/-)

period period

Operating income (RMB) 16621491876.35 15252265770.99 8.98%

Net profit attributable to the shareholders of

433939380.46686599759.65-36.80%

the listed company (RMB)

Net profit after deducting of non-recurring

gain/loss attributable to the shareholders of 423326955.85 678208256.33 -37.58%

listed company (RMB)

Net cash flows from operating activities

289055672.76-966470265.23130.35%

(RMB)

Basic earnings per share (RMB/Share) 0.11 0.18 -38.89%

Diluted earnings per share (RMB/Share) 0.11 0.18 -38.89%

Weighted average return on equity 1.91% 3.21% -1.30%

End of the current End of the previous

Changes (+/-)

reporting period reporting period

Total assets (RMB) 51152657504.80 55147123275.30 -7.24%

Net assets attributable to shareholders of the

22953219837.5822500969014.302.01%

listed company (RMB)

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

√ Applicable □ Not applicable

Unit: Yuan

Items Current reporting period Notes

Profit or loss from disposal of non-current assets (including the

3778746.80

write-off part for which assets impairment provision is made)

Details of government subsidies recorded into current profits and loss

（except such government subsidy closely related to the company’snormal business operation meeting the regulation of national policy 15494362.00

and enjoyed constantly in certain quota or quantity according to acertain standard）

Other non-operating revenue and expenditure other than above items -5097833.81

Less: Impact of income tax 3543818.75

Impact of minority interests (after tax) 19031.63

Total 10612424.61 --

2Bengang Steel Plates Co. Ltd. First Quarter Report 2022

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 informationdisclosure 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 information 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 explain 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 disbursement of

Cash at bank and on hand -36%

mature bills and loan repayment.Bill endorsement is greater than nots

Notes receivables -36%

received.Other current assets 39% Due to the increase of input VAT.Notes payables -68% Due to the maturity of notes.Due to the increase of long term loans and

Non-current liabilities due within

55% lease liabilities reclassified into

one year

non-current liabilities due within one year.* Items and reasons for the changes of more than 30% compared to January to March 2021 in the consolidated

financial statements

Increase /

2. Statement of comprehensive income Reasons

Decrease

3Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Due to the decrease of VAT during the

Tax and surcharges -58%

current period.Increase /

3. Statement of cash flows Reasons

Decrease

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

33%

rendering of services prepaid by customers.Cash paid for acquisition of fixed

Due to the decrease of cash paid for

assets intangible assets and other -69%

acquisition of assets.long-term assets

Cash received of borrowings -87% Due to the decrease of borrowings.Due to the decrease of cash paid for debt

Cash repayments of borrowings -38%

repayment.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 69331 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 110000000

Benxi Steel & Iron

d legal 58.65% 2409628094

(Group) Co. Ltd. Frozen 102100000

person

State-owne

Bengang Group

d legal 17.95% 737371532

Co. Ltd.person

Domestic

Zhang Wenyou natural 0.47% 19149967

person

Hong Kong Foreign

0.46%19013163

Securities legal person

4Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Clearing Company

Ltd.Domestic

Lyu Ruijun natural 0.39% 15944000

person

Domestic

Zhou Wei natural 0.20% 8245031

person

MORGAN

STANLEY & CO. Overseas

0.19%8005819

INTERNATIONA legal person

L PLC

China

Construction Bank

- Huaan

State-owned

Enterprise Reform Others 0.19% 7858800

Theme Flexible

Allocation of

Hybrid Securities

Investment Fund

State-owne

Guosen Securities

d legal 0.18% 7500000

Co. Ltd.person

CHINA

INTERNATIONA

L CAPITAL

Overseas

CORPORATION 0.17% 6999972

legal person

HONG KONG

SECURITIES

LTD.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

5Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Hong Kong Securities Clearing Common shares in

1901316319013163

Company Ltd. RMB

Common shares in

10140800

RMB

Lyu Ruijun 15944000

Domestic listed

5803200

foreign shares

Common shares in

Zhou Wei 8245031 8245031

RMB

MORGAN STANLEY & CO. Domestic listed

80058198005819

INTERNATIONAL PLC foreign shares

China Construction Bank -

Huaan State-owned Enterprise

Common shares in

Reform Theme Flexible 7858800 7858800

RMB

Allocation of Hybrid Securities

Investment Fund

Common shares in

Guosen Securities Co. Ltd. 7500000 7500000

RMB

CHINA INTERNATIONAL

CAPITAL CORPORATION Domestic listed

69999726999972

HONG KONG SECURITIES foreign shares

LTD.Benxi Steel & Iron (Group) Co. Ltd. and Bengang Group Co. Ltd. are related parties and

Related-parties oraction-in-concert parties as defined in “Measures for the Administration of the Takeover of Listedacting-in-concert parties amongCompanies” . It is unknown to the Company whether there is any other related parties or

the above-mentionedaction-in-concert parties as defined in “Measures for the Administration of the Takeover of ListedshareholdersCompanies”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 securities through an investor's credit securities account. Lyu Ruijun holds 5803900 shares of the

margin trading (if any) company through an ordinary securities account and holds 10140800 shares of the company

through an investor's credit securities account. Zhou Wei holds 8245031 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

□ Applicable √ Not applicable

6Bengang Steel Plates Co. Ltd. First Quarter Report 2022

IV. Quarterly Financial Statements

1. Financial Statements

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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

Items Ending balance Beginning balance

Current assets:

Cash at bank and on hand 5623464984.27 8831095737.85

Settlement provisions

Capital lent

Financial assets held for trading

Derivative financial assets

Notes receivable 982116707.54 1540482182.07

Accounts receivable 255878793.00 256850782.71

Accounts receivable financing 1764936076.15 1530735647.38

Prepayments 1168995371.85 994370345.64

Premium receivable

Reinsurance accounts receivable

Receivable deposit for reinsurance

contract

Other receivables: 163679106.67 165937280.41

Including: Interest receivables 2523993.39

Dividend receivables

Redemptory financial assets for sale

Inventories 9586796173.22 10190166138.98

Contract assets

Assets classified as held for sale

Non-current assets due within one year

Other current assets 1051876175.73 754948193.56

Total current assets 20597743388.43 24264586308.60

Non-current assets:

Loan and advances issued

Debt investments

Other debt investments

7Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items Ending balance Beginning balance

Long-term receivables

Long-term equity investments 2981784.07 2981784.07

Other equity instrument investments 1042024829.00 1042024829.00

Other non-current financial assets

Investment properties

Fixed assets 24944457081.23 25480674048.94

Construction in progress 2667610252.77 2434182101.13

Productive biological assets

Oil and gas assets

Right of use assets 1425271614.71 1440365248.31

Intangible assets 296076506.18 297921548.81

Development expenditure

Goodwill

Long-term deferred expenses

Deferred tax assets 155122816.54 153756548.31

Other non-current assets 21369231.87 30630858.13

Total non-current assets 30554914116.37 30882536966.70

Total assets 51152657504.80 55147123275.30

Current Liabilities:

Short-term loans 3349269640.00 4053088140.00

Loan from central bank

Absorbed deposit and interbank deposit

Financial liabilities held for trading

Derivative financial liabilities

Notes payable 1471541365.35 4635083376.48

Accounts payable 4712910696.78 5352272685.89

Advance from customers

Contract Liabilities 5208218604.35 4708188093.78

Financial assets sold for repurchase

Deposits from customers and interbank

Acting trading securities

Acting underwriting securities

Employee benefits payable 8634687.23 152095376.49

8Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items Ending balance Beginning balance

Current tax liabilities 28743413.28 114267988.70

Other payables 1039110555.17 1348025731.98

Including: Interest payables

Dividend payables

Handling charges and commission

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one

480732596.15310780518.14

year

Other current liabilities 677068418.58 612064452.20

Total current liabilities 16976229976.89 21285866363.66

Non-current liabilities:

Provision for insurance contract

Long-term loans 4051850120.64 4222821771.74

Bonds payable 5113488757.84 5054251668.83

Including: Preferred stock

Perpetual bond

Lease liabilities 1397342552.69 1424667169.15

Long-term payables

Long-term employee benefits payables

Estimated liabilities

Deferred income 86101923.89 93106285.89

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 10648783355.06 10794846895.61

Total liabilities 27625013331.95 32080713259.27

Shareholders’ equity:

Share capital 4108206077.00 4108191379.00

Other equity instruments 947869024.93 947882663.63

Including: Preferred stock

Perpetual bond

Capital reserves 13272185986.26 13272134173.09

9Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items Ending balance Beginning balance

Less: treasury shares

Other comprehensive income

Special reserves 18596548.92 337978.57

Surplus reserves 1195116522.37 1195116522.37

General risk reserves

Undistributed profits 3411245678.10 2977306297.64

Total equity attributable to equity holders of

22953219837.5822500969014.30

the parent company

Non-controlling interests 574424335.27 565441001.73

Total shareholder’s equity 23527644172.85 23066410016.03

Total liabilities and shareholder’s equity 51152657504.80 55147123275.30

Legal Representative: Huo Gang Person in charge of accounting: Jiang Xiaoyu Accounting Dept. Leader: Sun Yanbin

(2) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Unit: Yuan

Items The Current Period The Previous Period

1. Total operating income 16621491876.35 15252265770.99

Including: Operating income 16621491876.35 15252265770.99

Interest income

Premium earned

Income from handling charges

and commission

2. Total operating cost 16046070028.37 14342475515.13

Including: Operating cost 15654218567.07 13850889731.59

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 44004448.88 103677773.51

10Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

Selling and distribution expenses 31455748.09 21419092.78

General and administrative

185355304.08197489963.37

expenses

Research and development

10539231.959276704.82

expenses

Financial expenses 120496728.30 159722249.06

Including: interest expenses 181890201.86 248978172.74

Interest incomes 40628453.50 114535834.58

Add: Other incomes 15494362.00 16562376.50

Income on investment ("-" for loss)

Including: Income from associates and

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) 490217.55 1012753.44Asset impairment losses (“-" for loss)Assets disposal gains（“-” for loss） 3778746.80 130675.05

3. Operating profit ("-" for loss) 595185174.33 927496060.85

Add: Non-operating income 1349902.58 873594.74

Less: Non-operating expenses 6447736.39 6197792.66

4. Total profit ("-" for loss) 590087340.52 922171862.93

Less: Income tax expenses 148409306.39 229308801.27

5. Net Profit ("-" for loss) 441678034.13 692863061.66

(1) Classification by continuing

operating

1 Net profit from continuing

441678034.13692863061.66

operation ("-" for loss)

2 Net profit from discontinued

operation ("-" for loss)

(2) Classification by ownership

11Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

1 Net profit attributable to the

433939380.46686599759.65

owners of parent company

2 Net profit attributable to

7738653.676263302.01

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

into profit or loss

(2). Gains and losses from fair

value changes of other debt investments

(3). Gains and losses resulting

from reclassification 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

12Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

Other comprehensive income attributable to

non-controlling shareholders after tax

7. Total comprehensive income 441678034.13 692863061.66

Total comprehensive income attributable

433939380.46686599759.65

to owners of parent company

Total comprehensive income attributable

7738653.676263302.01

to non-controlling shareholders

8. Earnings per share:

1) Basic earnings per share 0.11 0.18

2) Diluted earnings per share 0.11 0.18

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

of previous period of the combined party realized: Yuan.Legal Representative: Huo Gang Person in charge of accounting: Jiang Xiaoyu Accounting Dept. Leader: Sun Yanbin

(3) CONSOLIDATED STATEMENT OF CASH FLOWS

Unit: Yuan

Items The Current Period The Previous Period

1. Cash flow from operating activities:

Cash received from sale of goods or

13265312867.969965304063.89

rendering of services

Net increase of customers’ deposit and

interbank deposit

Net increase of loan from central bank

Net increase of loans from other

financial institutions

Cash received for premium of original

insurance contract

Net cash received for reinsurance

business

Net increase of deposit and investment

of the insured

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

13Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

financial institutions

Net increase of fund for buy-back

business

Tax rebate received 2239644.55 35592041.90

Other cash received relating to

50088356.0844680105.17

operating activities

Subtotal of cash inflow received from

13317640868.5910045576210.96

operation activities

Cash paid for goods and services 12121835737.97 10187896266.01

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

550253943.99499525498.95

employees

Cash paid for all types of taxes 329077236.17 304963305.18

Other cash paid relating to operating

27418277.7019661406.05

activities

Subtotal of cash outflow received from

13028585195.8311012046476.19

operation activities

Net cash flows generated from operating

289055672.76-966470265.23

activities

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 4341972.00

long-term assets

Net cash received from disposal of

14Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

subsidiary and other operating units

Other cash received relating to

investing activities

Subtotal of cash inflow received from

4341972.00

investing activities

Cash paid for acquisition of fixed

assets intangible assets and other long-term 131364994.60 420987681.05

assets

Cash paid for acquisition of investments

Net increase of mortgage loan

Net cash paid to acquire subsidiaries

and other business units

Other cash paid relating to investing

3000000000.00

activities

Subtotal of cash outflows from investing

131364994.603420987681.05

activities

The net cash flow generated by investment

-127023022.60-3420987681.05

activities

3. Cash flows from financing activities:

Proceeds from investment

Including: Proceeds from investment of

non-controlling shareholders of subsidiary

Proceeds from borrowings 200000000.00 1512381000.00

Other proceeds relating to financing

activities

Subtotal cash inflow received from financing

200000000.001512381000.00

activities

Cash repayments of borrowings 958584275.97 1556333658.67

Cash payments for distribution of

82795166.16266480285.50

dividends profit or interest expenses

Including: Cash paid to non-controlling

shareholders as dividend and profit by

subsidiaries

Other cash payments relating to

financing activities

Subtotal of cash outflows from financing

1041379442.131822813944.17

activities

15Bengang Steel Plates Co. Ltd. First Quarter Report 2022

Items The Current Period The Previous Period

The net cash flow generated by financing

-841379442.13-310432944.17

activities

4. Effect of foreign exchange rate changes on

2952712.761302002.14

cash and cash equivalents

5. Net increase in cash and cash equivalents -676394079.21 -4696588888.31

Add: Cash and cash equivalents at the

6299099063.489229417595.12

beginning of the period

6. Cash and cash equivalents at the ending of

5622704984.274532828706.81

the period

2. Audit report

Whether the first quarter report is audited

□ Yes √ No

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

16