Stock Code: 000761, 200761 Abbreviation: Bengang Bancai, Bengangban B Announcement No. : 2017-034 Summary of Semi-Annual Report 2017 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 read carefully the full text of the Semi-Annual Report published on the media designated by China Securities Regulatory Commission in order to fully understand theCompany’s operation results, financial position and future development plan.
Objection statement of directors, supervisors and senior executives
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|Name|Office title|Objection & reason|

Statement
Other directors attending the Meeting for Semi-Annual Report deliberation except for the following
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|Name of director absent|Title for absent director|Reasons for absence|Attorney|

Non-standardauditor’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
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||Bengang Bancai, BengangbanB|||000761、200761|
|Stock abbreviation||Stock Code|||
|Stock exchange for listing|Shenzhen Stock Exchange||||
|Contact person and manner|Board secretary||Securities affairs Representative||
|Name|Sun Yanbin||Tong Weigang||

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||No.16, Renmin Road, Pingshan District,Benxi City, Liaoning Province|No.16, Renmin Road, Pingshan District,Benxi City, Liaoning Province|
|Address|||
|Tel|024-47828860|024-47827003|
|Fax|024-47827004|024-47827004|
|Email|bgbcsyb@126.com|bgbc761@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
|||||
|-|-|-|-|
||||Increase or decrease in this|
|||Same period in the previous||
||This reporting period||reporting period over the|
|||year||
||||previous year|
|Operating income|20,736,486,903.74|12,629,584,569.35|64.19%|
|Net profit attributable to the shareholders|523,635,653.57|182,538,176.32||
||||186.86%|
|of the listed company||||
|Net profit after deducting non-recurring||||
|gain/loss attributable to the shareholders of|508,873,423.83|164,516,206.59|209.32%|
|listed company||||
|Net cash flows generated by operating|-4,047,305,684.72|2,390,777,363.52||
||||-269.29%|
|activities||||
|Basic earnings per share|0.167|0.058|187.93%|
|Diluted earnings per share|0.167|0.058|187.93%|
|ROE|4.04%|1.52%|2.52%|
||||Increase or decrease at the|
||At the end of this reporting|At the end of previous||
||||end of this reporting period|
||period|reporting period||
||||over the previous year|
|Total assets|54,631,496,549.62|54,155,710,718.91|0.88%|
|Net assets attributable to shareholders of|13,249,274,456.60|12,715,354,551.15||
||||4.20%|
|the listed company||||

3. Number of shareholders and shareholding
Unit: Share
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|-|-|-|-|
|Total number of common||The total number of||
||59,424||0|
|shareholders at the end of the||preferred shareholders||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|reporting period|||||voting rights restored at the end|||||
||||||of the reporting period (See|||||
||||||Notes 8)|||||
|Shareholding of shareholders holding more than 5% or top 10 shareholders||||||||||
||||Number|||||Quantity of pledged or frozen||
|||Holding|of shares|Changes in||Restricted|Un-restricte|shares||
|Name of the|Nature of|||||||||
|||Percentage|held at|reporting||shares|d shares|||
|shareholder|shareholder|||||||||
|||(%)|period-en|period||held|held|Status|Quantity|
||||d|||||||
|Benxi Steel &Iron (Group)Co., Ltd.|State-owned legalperson|77.88%|2,442,316,069|||||Pledged|1,251,000,000|
|||||||||Frozen|45,000,000|
|Industrial andCommercialBank of ChinaLimited-SouthBig Data 100Index SecuritiesInvestmentFund|Others|0.31%|9,718,651|||||||
|Bank ofCommunicationLimited-ChangxinQuantificationPioneer MixedSecuritiesInvestmentFund|Others|0.29%|9,088,658|||||||
|BBH A/CVANGUARDEMERGINGMARKETSSTOCKINDEX FUND|Overseas legalperson|0.26%|8,157,311|||||||
|Zhou Jie|Domestic naturalperson|0.17%|5,200,000|||||||
|VANGUARDTOTALINTERNATIONAL STOCKINDEX FUND|Overseas legalperson|0.15%|4,606,141|||||||

|||||
|-|-|-|-|
|Caitong Fund -ICBC - CaitongSecurities Co.,Ltd.|Others|0.15%|4,499,967|
|SouthwestSecurities -ChinaEverbrightBank -SouthwestSecuritiesShuangxiXinguang Big 1Collection AssetManagementPlan|Others|0.13%|4,099,964|
|HaitongInternationalSecuritiesCompanyLimited-Account Client|Overseas legalperson|0.12%|3,785,109|
|Chen Nengyi|Domestic naturalperson|0.12%|3,757,336|
|Explanation on associated||It is unknown to the Company whether there is any related connection or ‘Action in Concert’||
|relationship among the aforesaid||as described by Rules of Information Disclosing Regarding Changing of Shareholding Status||
|shareholders||of Listed Companies existing among the above shareholders.||
|Explanation on shareholders||||
|||Chen Nengyi holds 3,757,336 shares of the company through investors' credit securities||
|participating in the margin trading||||
|||accounts.||
|business(if any )||||

4. Changes of Controlling Shareholders and Substantial Controller
Change of holding shareholder
□ Applicable√ Not applicable
There was no change of holding shareholder in the report period.
Change of substantial controller
□ Applicable√ Not applicable
There was no change of substantial controller in the report period.
Summary of Semi-Annual Report 2017 of Bengang Steel Plates Co., Ltd. 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
Yes
(1). Basic information of corporate bonds
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|-|-|-|-|-|-|
|Bond name|Bond short name|Bond code|Maturity date|Bond balance ’0000|Interest rate|
|Corporate Bond||||||
||15 Benxi Steel 01|112236|February 9,2018|150,000|5.17%|
|2015 (Phase I)||||||

(2) Major Financial Indicators at the End of the Reporting Period
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|-|-|-|-|
||||Increase or decrease in this|
|||Same period in the previous||
|Item|This reporting period||reporting period over the|
|||year||
||||previous year|
|Asset-liability ratio|74.78%|75.51%|-0.73%|
||||Increase or decrease in this|
|||Same period in the previous||
|Item|This reporting period||reporting period over the|
|||year||
||||previous year|
|EBITDA Total debt ratio|3.24%|3.51%|-7.69%|

 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 year, influence by the state policies to resolve the excess capacity and clean up the production of substandard steel products, the steel market gradually tuned better. The Company adjusted production mode, strengthened economic operation, and thus the benefit improved compared to previous year. During January to June, the Company produced 4.8568 million tons of pig iron, which decreased by0.83% compared to previous year; produced 4.9149 million tons crude steel, which increased by2.86% compared to previous year; produced 6.3215 million tons hot-rolled plate, which increased by15.63% compared to previous year; produced 2.8491 million tons cold-rolled plate, which increased by53.77% compared to previous year; and produced 402,900 tons special steel, which increased by11.7% compared to previous year.
The main work done in production operation during the first half year is as followings:
1. The Company vigorously promoted new product research and development, experimental research, application, technical services, and constantly improved the ability of scientific and technological innovation. By adjusting the product structure, and carrying out special management to key varieties with high profitability, the Company constantly expanded the market share of high value-added products.
2. The Company actively expanded procurement methods, and actively reduced procurement costs through the benchmarking price comparison, variety substitution, structural adjustment, timing procurement and other measures.
3. The Company focused on coal blending to reduce cost, strengthened economic operation. In accordance with the principle of cost-effective, at the same time of ensuring the stability of production, the Company achieved lower production costs through the development of new products to optimize the coal blending structure. The Company strictly controlled non-productive expense
expenditure, and significantly reduced the non-productive expense quota.
4. The Company adhered to the principle of maximizing economic benefits, innovated production organization mode. Taking the
domestic and foreign advanced steel enterprises as the benchmark, the Company actively carried out key processes for tapping the
mark, and effectively improved own short board, lowered the cost consumption level.
Summary of Semi-Annual Report 2017 of Bengang Steel Plates Co., Ltd. 5. The Company strengthened environmental protection responsibility implementation, tightened environmental protection facilities operation management. The Company strengthened the source of pollution control, and focused on day-to-day supervision and inspection of water, gas, sound, slag and others, implemented closed-loop management measures. The Company pushed forward the construction of environmental protection project to ensure pollutant emission reduction targets.
2. Issues related to the financial report
(1) Changes in the accounting policy, accounting estimation and measurement methods
√ Applicable□ Not applicable
There was no change in accounting policy, accounting estimation and measurement methods during the reporting period.
(2) Illustrations of retrospective restatement due to correction of significant accounting errors in the report period
□ Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Illustrations of changes of the consolidation scope as compared with the financial report of previous year
√Applicable□ Not applicable
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