The 3rd Quarterly Report 2016 Bengang Steel Plates Co., Ltd.
The 3rd Quarterly Report 2016
October 2016
The 3rd Quarterly Report 2016 I. Important Statement
The Board of Directors and the directors of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.
Mr. Zhao Zhongmin, The Company Leader, Mr. Han Ge, Chief financial officer and the Mr.Wang Shaoyu, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
The 3rd Quarterly Report 2016 II.Main financial data and changes of shareholders
I.Main accounting data and financial Index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||As at the end of the reporting||As at the end of last year||Changed （%）over end of||
||period||||prev. year||
|Gross assets（RMB）|48,399,792,782.49||44,461,643,345.33||8.86%||
|Net assets attributable to the|12,511,169,665.15||11,934,100,372.02||||
|shareholders of the listed company|||||4.84%||
|（RMB）|||||||
|||Increase/decrease over||Between beginning of|||
|||||||Changed （%）over|
||Reporting period|the same period of last||the year to the end of|||
|||||||end of prev. year|
|||year（%）||the report period|||
|Operating income（RMB）|7,352,413,667.74|46.51%||19,981,998,237.09||-6.47%|
|Net profit attributable to the|392,077,397.20|||574,615,573.52|||
|shareholders of the listed company||1,016.87%||||252.28%|
|（RMB）|||||||
|Net profit after deducting of|||||||
|non-recurring gain/loss attributable|||||||
||380,239,871.89|983.36%||544,756,078.48||288.06%|
|to the shareholders of listed|||||||
|company（RMB）|||||||
|Cash flow generated by business||||3,646,623,428.76|||
||--|--||||360.45%|
|operation, net（RMB）|||||||
|Basic earning per|0.13|||0.18|||
|||1,200.00%||||260.00%|
|share(RMB/Share)|||||||
|Diluted gains per|0.13|||0.18|||
|||1,200.00%||||260.00%|
|share(RMB/Share)(RMB/Share)|||||||
|Weighted average income/asset|||||||
||3.21%|2.98%||4.72%||3.66%|
|ratio（%）|||||||

In RMB
||||
|-|-|-|
||Amount (Year-beginning to||
|Items||Notes|
||the end of the report period.)||
|Non-current asset disposal gain/loss(including the write-off partfor which assets impairment provision is made)|||
||4,490,126.73||
|Govemment subsidy recognized in current gain and|24,933,000.00||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|loss(excluding those closely related to the Company‟s business|||
|and granted under the state‟s policies)|||
|Gain/loss from commissioned investment or assets|569,498.63||
|Gain/loss from debt reorganization|8,631,844.34||
|Other non-business income and expenditures other than the above|1,270,530.97||
|Less: Influenced amount of income tax|9,973,750.17||
|Influence on minority shareholders‟ equity (after tax)|61,755.46||
|Total|29,859,495.04|--|

If the company defines those items to recurring gain/loss items, which were defined by “Regulations of
Information Disclosure of PLCs, Explanation No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
□ Applicable√Not applicable
None of non-recurring gain/loss items recognized as recurring gain/loss items as defined by the Information Disclosure Explanatory Announcement No.1– Non-recurring gain/loss in the report period.
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||
|-|-|-|-|-|-|-|-|
|||||Total preference shareholders||0||
|Total number of common||||with the voting power||||
|||74,128||||||
|shareholders at the period-end||||recovered at the end of the||||
|||||reporting period(if any)||||
|Shares held by the top 10 shareholders||||||||
||||||Amount of|Pledging or freezing||
||Properties of|Share|||tradable shares|||
|Shareholder name|||Quantity|||Status of the||
||shareholder|proportion %|||with Conditional||Quantity|
|||||||shares||
||||||held|||
|Benxi Steel(Group) Ltd.|State-owned legalperson|77.80%|2,442,316,069|||Pledged|404,000,000|
|BBH A/CVANGUARDEMERGINGMARKETSSTOCK INDEXFUND|Overseas legalperson|0.26%|8,157,311|||||
|Zhou Jie|Domestic naturalperson shares|0.23%|7,332,801|||||
|Ruan Shouguo|Domestic naturalperson shares|0.16%|5,082,200|||||
|Zhan|Domestic natural|0.15%|4,660,515|||||

The 3rd Quarterly Report 2016
|||||||
|-|-|-|-|-|-|
|Changcheng|person shares|||||
|VANGUARDTOTALINTERNATIONAL STOCKINDEX FUND|Overseas legalperson|0.15%|4,606,141|||
|CITIGROUPGLOBALMARKETSLIMITED|Overseas legalperson|0.14%|4,237,147|||
|HaitongInternationalSecuritiesCompanyLimited-AccountClient|Overseas legalperson|0.10%|3,286,109|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseas legalperson|0.10%|3,080,304|||
|Agricultural Bankof China－Richcountries in thereform ofstate-ownedenterprisereform indexsecuritiesinvestment fund|Other|0.09%|2,847,400|||
|Shares held by the Top 10 Shareholders of Non-restricted shares||||||
|||||Share type||
|Shareholders‟ Names||Number of the non-restricted shares held||||
|||||Share type|Quantity|
|Benxi Steel (Group) Ltd.||2,442,316,069||RMB common||
||||||2,442,316,069|
|||||shares||
|BBH A/C VANGUARDEMERGING MARKETS STOCKINDEX FUND||8,157,311||Foreign shares||
|||||placed in||
||||||8,157,311|
|||||domestic||
|||||exchange||
|Zhou Jie||7,332,801||Foreign shares||
||||||7,332,801|
|||||placed in||

The 3rd Quarterly Report 2016
|||||
|-|-|-|-|
|||domestic||
|||exchange||
|Ruan Shouguo|5,082,200|RMB common||
||||5,082,200|
|||shares||
|Zhan Changcheng|4,660,515|Foreign shares||
|||placed in||
||||4,660,515|
|||domestic||
|||exchange||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND|4,606,141|Foreign shares||
|||placed in||
||||4,606,141|
|||domestic||
|||exchange||
|CITIGROUP GLOBAL MARKETSLIMITED|4,237,147|Foreign shares||
|||placed in||
||||4,237,147|
|||domestic||
|||exchange||
|Haitong International SecuritiesCompany Limited-Account Client|3,286,109|Foreign shares||
|||placed in||
||||3,286,109|
|||domestic||
|||exchange||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|3,080,304|Foreign shares||
|||placed in||
||||3,080,304|
|||domestic||
|||exchange||
|Agricultural Bank of China－Richcountries in the reform ofstate-owned enterprise reformindex securities investment fund|2,847,400|||
|||RMB common||
||||2,847,400|
|||shares||
|Notes to relationship or “action in|It is unknown to the Company whether there is any related connection or „Action in Concert‟|||
|concert” among the top ten|as described by Rules of Information Disclosing Regarding Changing of Shareholding Status|||
|shareholders.|of Listed Companies existing among the above shareholders.|||
|Note to the top 10 common||||
|stockholders involved in margin||||
||None|||
|financing & securities lending(if||||
|any)||||

Whether there was any repurchasing deal made between any of the top 10 shareholders and top 10 holders of unrestricted shares in the report period
[] Yes[V] No
There was not any repurchasing deal made between any of the top 10 shareholders and top 10 holders of
unrestricted shares in the report period
The 3rd Quarterly Report 2016 2 Total of shareholders and top-10 preferential shareholders at end of the report period
□ Applicable√Not applicable
III. Significant Issues
I. Particulars and causations of material change in major accounting items and indices
√Applicable□Not applicable
* Items changed by over30% comparing with that of at the end of 2015 in the consolidated accounts, and
causations
||||
|-|-|-|
|I. Items in the balancesheet|Changedby|Causation of change|
|Monetary Fund|72%|Due to the increase of the company current reserves|
|Available for sale financialassets|44%|Mainly due to the current shares of Bengang Baojin (Shenyang)Automotive New Materials Technology Co., Ltd. due.|
|Construction in process|33%|Mainly due to the unsettled construction in progress increased|
|Construction material|87%|Mainly due to unrequited increase in construction materials|
|Deferred tax assets|-48%|Mainly due to the Company's profit for the current periodmakes up the loss|
|Account payable|35%|Mainly due to increase in current period payables|
|Advance Payments|37%|Mainly due to the current steel prices, advance receiptsincreased|
|Non-current liabilities duewithin one year|-50%|Mainly due to current non-current liabilities due within oneyear are due for repayment|
|Long-term borrowings|229%|Mainly due to long-term borrowings were added in the currentperiod|
|Special reserves|624%|Mainly due to the current period to pay the safe use feedecreased|
|Undistributed profit|45%|Mainly due to profit for the period increased|

* Items changed by over30% comparing with that of Jan - Sept 2015 in the consolidated accounts, and
causations
||||
|-|-|-|
|II. Items under incomestatement|Changedby|Causation of change|
|Operational tax andsurcharges|37%|Mainly due to the current value added tax payable|
|Asset impairment loss|-104%|Mainly due to the current steel prices, did not mention theprovision for inventory decline|
|Investment gains|-92%|Mainly due to current purchase of financial products decreased|

The 3rd Quarterly Report 2016 Mainly due to loss of non-current assets decreased during the
Non-operational expenses -99% period
||||
|-|-|-|
|Income tax expense|46769%|Mainly due to this period to achieve profitability, make uplosses|
|Minor shareholders‟ equity|283%|Mainly due to the profit of the holding company increased|
|III. Items under cash flowstatement|Changedby|Causation of change|
|Tax returned|-47%|Mainly due to the amount of export tax rebate received in thisperiod decreased|
|Cash received frominvestment retrieving|-83%|Mainly due to current purchase of financial products decreased|
|Cash received as investmentprofit|-92%|Mainly due to current purchase of financial products decreased|
|Net cash retrieved fromdisposal of fixed assets,intangible assets, and otherlong-term assets|-33%|Net cash retrieved from disposal of fixed assets, intangibleassets, and other long-term assets|
|Cash paid for purchasing orconstruction of fixed assets,intangible assets, and otherlong-term assets|-49%|Mainly due to cash paid for acquisition and construction offixed assets decreased|
|Cash paid as investment|-67%|Mainly due to current purchase of financial products decreased|

II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
□ Applicable√Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
□ Applicable√Not applicable
Non-existence
IV. Prospect on business performance of 2016
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the same period of last year, and statement of causations.
□ Applicable√Not applicable
V. Securities investment
□ Applicable√Not applicable
Non-existence
The 3rd Quarterly Report 2016 VI. Investment in derivatives
√Applicable□ Not applicable
InRMB‟0000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Ratio of||
|||||||||||||investm||
|||||||||||Amount||ent||
|||||||||||of||amount||
|||||||||Amount||||||
||||||||Investm||Amount|reserve|Investm|at||
|||||||||purchas||||||
|||Whether|||||ent||sold|for|ent|period-e|Actual|
||Related|||Initial||||ed||||||
|||related|||Start|End|amount||during|devaluat|amount|nd in|gains/lo|
|Name|relations||Type|investm||||during||||||
|||trade or|||date|date|at||the|ion of|at|net|sses in|
||hip|||ent||||the||||||
|||not|||||period-b||reportin|withdra|period-e|assets of|period|
|||||||||reportin||||||
||||||||egin||g period|wing(if|nd|the||
|||||||||g period||||||
|||||||||||applicab||compan||
|||||||||||le)||y at||
|||||||||||||period-e||
|||||||||||||nd||
||The||Hot|||||||||||
|Bengang||||1,214.0|June|August|1,214.0|1,204.7|1,219.3|||||
||compan|No|rolled||||||||0|0.00%|14.56|
|Bancai||||4|30,2016|15,2016|4|9|5|||||
||y||futures|||||||||||
|||||1,214.0|||1,214.0|1,204.7|1,219.3|||||
|Total|||||--|--|||||0|0.00%|14.56|
|||||4|||4|9|5|||||
|Capital resource||||Self-owned capital||||||||||
|Lawsuits (if applicable)||||Not applicable||||||||||
|Disclosure date for approval from the||||||||||||||
|Board for investment of derivatives (if||||May 27,2016||||||||||
|applicable)||||||||||||||
|Disclosure date for approval from||||||||||||||
|board of shareholders for investment of||||May 27,2016||||||||||
|derivatives (if applicable)||||||||||||||
|||||Adjust the rolling stock is hedging, the use of rolling line surplus capacity, while in the sprea||||||||||
|||||d of the cost of the spread of futures-based tool to lock the way the price of rolling profits. Th||||||||||
|Venture analysis and explanation on||||||||||||||
|||||e Company formulated the Measures for the Administration of Futures of Bengang Steel Plat||||||||||
|control measures for derivatives||||||||||||||
|||||es Co., Ltd. and the Detailed Rules for the Implementation of Futures Business of Bengang S||||||||||
|holding in Period (including but not||||||||||||||
|||||teel Plate Co., Ltd., and carried out full assessment and market control on the risks of futures||||||||||
|limited to market risk, liquidity risk,||||||||||||||
|||||investment and positions. 1. Business scale control in the procurement and sales targets withi||||||||||
|credit risks, operational risk and legal||||||||||||||
|||||n 20%. 2. The maximum margin for hedging of the Company was RMB 200 million. 3. To d||||||||||
|risk etc.)||||||||||||||
|||||evelop futures trading program, the program of possible legal risks, operational risk, market r||||||||||
|||||isk, a full assessment and the development of effective control measures.||||||||||
|Particular about the changes of market||||||||||||||
|||||The fair value is determined in order to be active in the market.||||||||||
|price or product‟s fair value of invested||||||||||||||

The 3rd Quarterly Report 2016
|||
|-|-|
|derivatives in Period; as for analysis of||
|the fair value of derivatives, disclosed||
|specific treatment methods and relevant||
|hypothesis and parameter setting||
|Explanation on major changes on||
|specific principle of accounting policy||
|and accounting calculation for|No significant change occurred.|
|derivatives in Period, by comparing||
|with last period||
||In order to develop the futures business, the Company formulated the Measures for the|
||Administration of Futures of Bengang Steel Plate Co., Ltd., and clarified the relevant systems|
||and business operation modes such as the organizational structure, business processes, risk|
|Specific opinions from independent|control and other relevant laws and regulations. The relevant provisions, to carry out futures|
|directs on derivative investment and|business. Is conducive to the company to reduce operational risks, to adapt to the fierce|
|risk controlling|market competition, to achieve transition across development. The maximum amount and|
||trading variety of futures trading margin determined by the Company is reasonable and does|
||not affect the normal production and operation of the Company and does not harm the|
||interests of the Company and all shareholders.|

VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period
□ Applicable√Not applicable
Not applicable
VIII. Outward Guarantee against the Regulations
□ Applicable√Not applicable
Not applicable
IX. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
□ Applicable√Not applicable
Non-existence
IV. Financial Statement
I. Financial statement
1. Consolidated balance sheet
Preparedby：Bengang
Steel Plate Co., Ltd.
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Monetary fund|8,837,200,495.24|5,140,480,509.97|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial assets|||
|Bill receivable|1,982,687,604.81|2,449,682,561.16|
|Account receivable|396,484,752.46|488,584,624.72|
|Prepayments|587,671,911.37|569,851,950.69|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts|||
|receivable|||
|Interest receivable|2,757,392.36|3,524,615.12|
|Dividend receivable|||
|Other account receivable|130,796,204.04|151,668,877.26|
|Repurchasing of financial assets|||
|Inventories|9,173,967,475.70|8,601,734,442.42|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|496,400,218.03|431,360,541.21|
|Total of current assets|21,607,966,054.01|17,836,888,122.55|
|Non-current assets：|||
|Loans and payment on other‟s behalf|||
|disbursed|||
|Disposable financial asset|29,271,278.63|20,271,278.63|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|||
|Property investment|||
|Fixed assets|18,677,831,035.77|20,046,254,726.74|
|Construction in progress|7,482,466,195.81|5,646,624,293.27|
|Engineering material|7,783,368.08|4,152,880.79|
|Fixed asset disposal|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|261,066,619.69|265,520,912.57|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|333,408,230.50|641,931,130.78|
|Other non-current asset|||
|Total of non-current assets|26,791,826,728.48|26,624,755,222.78|
|Total of assets|48,399,792,782.49|44,461,643,345.33|
|Current liabilities|||
|Short-term loans|17,996,104,679.48|18,139,885,596.60|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial liabilities|||
|Bill payable|1,649,373,536.92|2,110,511,950.79|
|Account payable|6,750,098,621.14|5,015,900,664.47|
|Advance payment|2,491,601,797.55|1,815,443,452.05|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees‟ wage payable|43,663,359.32|36,455,143.76|
|Tax payable|34,996,724.63|45,194,528.35|
|Interest payable|51,966,411.45|70,958,686.96|
|Dividend payable|||
|Other account payable|400,908,041.06|444,734,704.90|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|716,529,894.11|1,434,004,649.14|

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Other current liability|||
|Total of current liability|30,135,243,065.66|29,113,089,377.02|
|Non-current liabilities：|||
|Long-term loan|3,314,345,410.90|1,005,919,974.09|
|Bond payable|1,493,242,002.32|1,490,352,572.75|
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable employees‟s|||
|remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|397,755,000.00|413,188,000.00|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|5,205,342,413.22|2,909,460,546.84|
||35,340,585,478.88|32,022,549,923.86|
|Total of liability|||
|Owners‟ equity|||
||3,136,000,000.00|3,136,000,000.00|
|Share capital|||
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|9,114,845,542.05|9,114,845,542.05|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|2,847,091.66|393,372.05|
|Surplus reserves|961,105,529.85|961,105,529.85|
|Common risk provision|||
||-703,628,498.41|-1,278,244,071.93|
|Undistributed profit|||
|Total of owner‟s equity belong to the|||
||12,511,169,665.15|11,934,100,372.02|
|parent company|||
|Minority shareholders‟ equity|548,037,638.46|504,993,049.45|
|Total of owners‟ equity|13,059,207,303.61|12,439,093,421.47|
|Total of liabilities and owners‟ equity|48,399,792,782.49|44,461,643,345.33|

The 3rd Quarterly Report 2016 Legal representative: Zhao Zhongmin CFO: Han Ge Accounting Manager: Wang Shaoyu
2.Parent Company Balance Sheet
In RMB
||||
|-|-|-|
|Items|At the end of term|Beginning of term|
|Current asset：|||
|Monetary fund|8,625,268,737.20|4,921,089,319.57|
|Financial assets measured at fair value with|||
|variations accounted into current income|||
|account|||
|Derivative financial assets|||
|Bill receivable|1,811,291,700.84|2,298,691,410.40|
|Account receivable|351,150,711.09|449,193,422.02|
|Prepayments|561,344,559.89|549,553,039.03|
|Interest receivable|2,757,392.36|3,524,615.12|
|Dividend receivable|||
|Other account receivable|183,445,270.70|229,428,159.94|
|Inventories|7,832,812,091.48|7,452,873,949.34|
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|454,211,823.73|387,259,423.54|
|Total of current assets|19,822,282,287.29|16,291,613,338.96|
|Non-current assets：|||
|Disposable financial asset|27,303,673.00|18,303,673.00|
|Expired investment in possess|||
|Long-term receivable|||
|Long term share equity investment|1,700,981,902.16|1,700,981,902.16|
|Property investment|||
|Fixed assets|16,065,400,027.42|17,179,043,906.45|
|Construction in progress|7,475,756,417.87|5,646,077,292.11|
|Engineering material|4,134,137.31|4,134,138.91|
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|156,214,986.86|158,694,589.82|

The 3rd Quarterly Report 2016
||||
|-|-|-|
|R & D petrol|||
|Goodwill|||
|Long-germ expenses to be amortized|||
|Deferred income tax asset|253,920,925.18|562,072,018.42|
|Other non-current asset|||
|Total of non-current assets|25,683,712,069.80|25,269,307,520.87|
|Total of assets|45,505,994,357.09|41,560,920,859.83|
|Current liabilities|||
|Short-term loans|16,513,375,400.00|16,798,213,600.00|
|Financial liabilities measured at fair value|||
|with variations accounted into current|||
|income account|||
|Derivative financial liabilities|||
|Bill payable|1,549,373,536.92|1,651,808,822.92|
|Account payable|7,363,633,771.16|5,263,012,477.37|
|Advance payment|2,169,330,643.26|1,957,484,054.73|
|Employees‟ wage payable|43,208,135.74|34,194,188.88|
|Tax payable|20,228,840.93|9,986,022.56|
|Interest payable|50,722,321.13|70,113,698.63|
|Dividend payable|||
|Other account payable|330,404,702.20|324,906,037.82|
|Classified as held for sale debt|||
|Non-current liability due in 1 year|716,529,894.11|1,434,004,649.14|
|Other current liability|||
|Total of current liability|28,756,807,245.45|27,543,723,552.05|
|Non-current liabilities：|||
|Long-term loan|3,314,345,410.90|1,005,919,974.09|
|Bond payable|1,493,242,002.32|1,490,352,572.75|
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Long-term payable to employees|||
|Special payable|||
|Expected liabilities|||
|Deferred income|397,755,000.00|413,188,000.00|

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|5,205,342,413.22|2,909,460,546.84|
|Total of liability|33,962,149,658.67|30,453,184,098.89|
|Owners‟ equity|||
|Share capital|3,136,000,000.00|3,136,000,000.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|8,694,693,859.93|8,694,693,859.93|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|2,847,091.66|393,372.05|
|Surplus reserves|961,105,529.85|961,105,529.85|
|Undistributed profit|-1,250,801,783.02|-1,684,456,000.89|
|Total of owners‟ equity|11,543,844,698.42|11,107,736,760.94|
|Total of liabilities and owners‟ equity|45,505,994,357.09|41,560,920,859.83|

 3.Consolidated Income statement of the Report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|7,352,413,667.74|5,018,448,900.24|
|Incl：Business income|7,352,413,667.74|5,018,448,900.24|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|6,782,057,523.51|4,999,089,186.11|
|Incl：Business cost|6,125,972,410.63|3,985,783,772.69|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|27,088,709.48|7,762,405.33|
|Sales expense|219,452,625.67|249,532,039.19|
|Administrative expense|200,432,767.91|191,518,290.30|
|Financial expenses|209,946,899.42|553,412,238.77|
|Asset impairment loss|-835,889.60|11,080,439.83|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|569,498.63|642,273.97|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for|||
|loss）|||
|III. Operational profit（“-”for loss|570,925,642.86|20,001,988.10|
|Add：Non-business income|15,234,307.48|12,553,902.85|
|Incl：Gains from disposal of|||
||2,475,142.83|4,227,427.11|
|non-current assets|||
|Less：Non business expenses||93,793.74|
|Incl：Loss from disposal of|||
|||93,793.74|
|non-current assets|||
|IV.Total profit(“-”for loss)|586,159,950.34|32,462,097.21|
|Less：Income tax expenses|174,795,525.68|3,090,980.55|
|V. Net profit（“-”for net loss|411,364,424.66|29,371,116.66|
|Net profit attributable to the owners of|||
||392,077,397.20|35,104,914.65|
|parent company|||
|Minority shareholders‟ equity|19,287,027.46|-5,733,797.99|
|VI. Net after-tax of Other|||
|comprehensive income|||
|Net after-tax|||
|of other comprehensive income attribut|||
|able to owners of the parent company.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|||
|Net|||
|after-tax of other comprehensive incom|||
|e attributable to Minority shareholders‟|||
|equity|||
|VII. Total comprehensive income|411,364,424.66|29,371,116.66|
|Total comprehensive income|||
|attributable to the owner of the parent|392,077,397.20|35,104,914.65|
|company|||
|Total comprehensive income|||
||19,287,027.46|-5,733,797.99|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.13|0.01|
|(II)Diluted earnings per share|0.13|0.01|

 If there are entities merged under common control, their net profit realized before the merger were totaled toRMB***. While it wasRMB*** previous period.
Legal representative: Zhao Zhongmin CFO: Han Ge Accounting Manager: Wang Shaoyu
The 3rd Quarterly Report 2016 4.Income statement of the Parent Company of the Report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Income from the key business|7,541,752,295.18|5,727,345,071.98|
|Less：Business cost|6,506,196,116.23|4,747,476,098.85|
|Business tax and surcharge|24,375,185.52|31,262.08|
|Sales expense|155,519,980.97|213,430,476.87|
|Administrative expense|185,740,284.28|177,809,001.92|
|Financial expenses|195,326,877.96|534,681,668.91|
|Asset impairment loss|-368,932.75|9,186,144.81|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|569,498.63|642,273.97|
|Incl: investment gains from affiliates|||
|II. Operational profit（“-”for loss）|475,532,281.60|45,372,692.51|
|Add ：Non-operational income|15,117,388.95|12,437,296.73|
|Including：Income from disposal of|||
||2,406,422.22|4,227,427.11|
|non-current assets|||
|Less：Non business expenses||8,686.75|
|Incl：Loss from disposal of non-current|||
|||8,686.75|
|assets|||
|III.Total profit(“-”for loss)|490,649,670.55|57,801,302.49|
|Less：Income tax expenses|170,060,434.17|-78,683.79|
|IV. Net profit（“-”for net loss）|320,589,236.38|57,879,986.28|
|V.Net of profit of other comprehensive i|||
|ncome|||
|（I）Other comprehensive income|||
|items that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（ II ）|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|||
|VI. Total comprehensive income|320,589,236.38|57,879,986.28|
|VII. Earnings per share：|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

5. Consolidated Income statement between the beginning of the year and end of the report period
In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Total operating income|19,981,998,237.09|21,363,364,061.42|
|Including：Operating income|19,981,998,237.09|21,363,364,061.42|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|19,089,375,328.26|21,229,584,863.99|
|Including：Operating cost|17,040,154,712.67|18,887,333,123.26|
|Interest expense|||
|Commission chare and commission|||
|expense|||
|Insurance discharge|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|payment|||
|Net claim amount paid|||
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and|||
||53,421,604.24|38,872,932.66|
|surcharge|||
|Sales expense|649,513,688.81|727,881,318.33|
|Administrative expense|552,387,486.39|569,109,337.75|
|Financial expenses|796,614,724.61|944,811,866.14|
|Asset impairment loss|-2,716,888.46|61,576,285.85|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|569,498.63|7,226,589.08|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for|||
|loss）|||
|III. Operational profit（“-”for loss|893,192,407.46|141,005,786.51|
|Add：Non-business income|39,430,977.03|54,776,907.31|
|Incl：Gains from disposal of|||
||4,595,601.72|7,155,188.26|
|non-current assets|||
|Less：Non business expenses|105,474.99|20,755,118.94|
|Incl：Loss from disposal of|||
||105,474.99|20,755,118.94|
|non-current assets|||
|IV.Total profit(“-”for loss)|932,517,909.50|175,027,574.88|
|Less：Income tax expenses|314,857,746.97|671,775.63|
|V. Net profit（“-”for net loss|617,660,162.53|174,355,799.25|
|Net profit attributable to the owners of|||
||574,615,573.52|163,112,050.91|
|parent company|||
|Minority shareholders‟ equity|43,044,589.01|11,243,748.34|
|VI. Net after-tax of Other|||
|comprehensive income|||
|Net after-tax|||
|of other comprehensive income attribut|||
|able to owners of the parent company.|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|||
|Net|||
|after-tax of other comprehensive incom|||
|e attributable to Minority shareholders‟|||
|equity|||
|VII. Total comprehensive income|617,660,162.53|174,355,799.25|
|Total comprehensive income|||
|attributable to the owner of the parent|574,615,573.52|163,112,050.91|
|company|||
|Total comprehensive income|||
||43,044,589.01|11,243,748.34|
|attributable minority shareholders|||
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.18|0.05|
|(II)Diluted earnings per share|0.18|0.05|

If there are entities merged under common control, their net profit realized before the merger were totaled toRMB***. While it was
The 3rd Quarterly Report 2016RMB*** previous period.
6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I. Business income|20,727,140,742.37|22,946,968,744.42|
|Less：Business cost|18,236,082,900.44|20,822,808,789.04|
|Business tax and surcharge|39,015,159.45|25,377,987.04|
|Sales expense|507,779,490.30|602,563,831.95|
|Administrative expense|507,214,377.27|525,469,968.99|
|Financial expenses|750,350,717.43|881,677,591.95|
|Asset impairment loss|-2,249,931.61|39,545,707.32|
|Add：Gains from change of fir value|||
|（“-”for loss）|||
|Investment gain（“-”for loss）|14,282,827.08|7,226,589.08|
|Incl: investment gains from affiliates|||
|II. Operational profit|703,230,856.17|56,751,457.21|
|Add：Non-business income|38,679,929.93|52,028,094.80|
|Incl：Gains from disposal of|||
||4,456,927.98|5,442,429.49|
|non-current assets|||
|Less：Non business expenses|105,474.99|20,670,011.95|
|Incl：Loss from disposal of non-current|||
||105,474.99|20,670,011.95|
|assets|||
|III.Total profit|741,805,311.11|88,109,540.06|
|Less：Income tax expenses|308,151,093.24|-13,971,400.19|
|IV. Net profit|433,654,217.87|102,080,940.25|
|V. Net after-tax of Other comprehensive|||
|income|||
|Net after –tax|||
|of profit of other comprehensive incom|||
|e attributable to owners of the parent co|||
|mpany.|||
|（I）Other comprehensive income items|||
|that will not be reclassified into|||
|gains/losses in the subsequent|||
|accounting period|||
|1.Re-measurement of defined benefit pl|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|ans of changes in net debt or net assets|||
|2.Other comprehensive income under th|||
|e equity method investee can not be recl|||
|assified into profit or loss.|||
|（II）|||
|Other comprehensive income that will b|||
|e reclassified into profit or loss.|||
|1.Other comprehensive income under th|||
|e equity method investee can be reclassi|||
|fied into profit or loss.|||
|2.Gains and losses from changes in fair|||
|value available for sale financial assets|||
|3.Held-to-maturity investments reclassif|||
|ied to gains and losses of available for s|||
|ale financial assets|||
|4.The effective portion of cash flow hed|||
|ges and losses|||
|5.Translation differences in currency fin|||
|ancial statements|||
|6.Other|433,654,217.87|102,080,940.25|
|V. Earnings per share|||
|（I）Basic earnings per share|||
|(II)Diluted earnings per share|||

7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||16,580,702,769.37|16,266,245,235.29|
|rending of services|||
|Net increase of customer deposits|||
|and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from|||
|other financial bodies|||
|Cash received against original insurance|||
|contract|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||
|Net increase of the financial assets that|||
|are measured at fair value and whose|||
|movement is counted to the current gain|||
|and loss|||
|Cash received as interest, processing fee|||
|and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|353,037,007.15|662,521,114.16|
|Other cash received from business|||
||84,677,742.77|91,668,231.59|
|operation|||
|Sub-total of cash inflow|17,018,417,519.29|17,020,434,581.04|
|Cash paid for purchasing of|||
||11,511,671,889.04|16,366,576,026.70|
|merchandise and services|||
|Net increase of client trade and advance|||
|Net increase of savings n central bank|||
|and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee|||
|and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|1,247,371,996.56|1,382,466,323.65|
|Taxes paid|273,035,353.99|304,290,794.39|
|Other cash paid for business activities|339,714,850.94|367,215,382.23|
|Sub-total of cash outflow from business|||
||13,371,794,090.53|18,420,548,526.97|
|activities|||
|Cash flow generated by business|||
||3,646,623,428.76|-1,400,113,945.93|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||300,000,000.00|1,747,000,000.00|
|retrieving|||
|Cash received as investment gains|569,498.63|7,226,589.08|
|Net cash retrieved from disposal of|4,296,555.00|6,407,771.07|

The 3rd Quarterly Report 2016
||||
|-|-|-|
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash received|||
|Sub-total of cash inflow due to|||
||304,866,053.63|1,760,634,360.15|
|investment activities|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|1,016,048,866.75|1,976,666,364.11|
|long-term assets|||
|Cash paid as investment|572,000,000.00|1,747,000,000.00|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||1,588,048,866.75|3,723,666,364.11|
|investment activities|||
|Net cash flow generated by investment|-1,283,182,813.12|-1,963,032,003.96|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Incl: Cash received as investment from|||
|minor shareholders|||
|Cash received as loans|12,925,514,125.63|10,227,293,035.82|
|Cash received from bond placing|||
|Other financing –related ash received|210,000,000.00||
|Sub-total of cash inflow from financing|||
||13,135,514,125.63|10,227,293,035.82|
|activities|||
|Cash to repay debts|11,692,619,787.29|11,714,835,352.66|
|Cash paid as dividend, profit, or|||
||737,477,171.35|1,031,281,578.31|
|interests|||
|Incl: Dividend and profit paid by|||
|subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
||12,430,096,958.64|12,746,116,930.97|
|financing activities|||
|Net cash flow generated by financing|705,417,166.99|-2,518,823,895.15|

The 3rd Quarterly Report 2016
||||
|-|-|-|
|IV. Influence of exchange rate|||
||39,845,240.81|49,806,775.81|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||3,108,703,023.44|-5,832,163,069.23|
|equivalents|||
|Add: balance of cash and cash|||
||4,612,782,772.98|9,327,034,030.07|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||7,721,485,796.42|3,494,870,960.84|
|equivalents at the end of term|||

8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB
||||
|-|-|-|
|Items|Amount in this period|Amount in last period|
|I.Cash flows from operating activities|||
|Cash received from sales of goods or|||
||17,325,991,437.46|17,125,620,967.15|
|rending of services|||
|Tax returned|343,392,974.16|580,257,065.94|
|Other cash received from business|||
||76,149,013.82|84,989,052.66|
|operation|||
|Sub-total of cash inflow|17,745,533,425.44|17,790,867,085.75|
|Cash paid for purchasing of|||
||12,379,218,031.50|18,818,738,975.87|
|merchandise and services|||
|Cash paid to staffs or paid for staffs|1,181,632,960.47|1,314,515,875.18|
|Taxes paid|146,872,420.32|164,895,584.21|
|Other cash paid for business activities|295,590,912.91|304,105,155.51|
|Sub-total of cash outflow from business|||
||14,003,314,325.20|20,602,255,590.77|
|activities|||
|Cash flow generated by business|||
||3,742,219,100.24|-2,811,388,505.02|
|operation, net|||
|II.Cash flow generated by investing|||
|Cash received from investment|||
||300,000,000.00|1,747,000,000.00|
|retrieving|||
|Cash received as investment gains|569,498.63|7,226,589.08|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|4,107,574.00|6,367,771.07|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||

The 3rd Quarterly Report 2016
||||
|-|-|-|
|Other investment-related cash received|||
|Sub-total of cash inflow due to|||
||304,677,072.63|1,760,594,360.15|
|investment activities|||
|Cash paid for construction of|||
|fixed assets, intangible assets|996,101,897.66|1,959,576,291.15|
|and other long-term assets|||
|Cash paid as investment|572,000,000.00|1,747,000,000.00|
|Net cash received from subsidiaries and|||
|other operational units|||
|Other cash paid for investment|||
|activities|||
|Sub-total of cash outflow due to|||
||1,568,101,897.66|3,706,576,291.15|
|investment activities|||
|Net cash flow generated by investment|-1,263,424,825.03|-1,945,981,931.00|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|11,862,514,125.63|9,644,293,035.82|
|Cash received from bond placing|||
|Other financing –related ash received|210,000,000.00||
|Sub-total of cash inflow from|||
||12,072,514,125.63|9,644,293,035.82|
|financing activities|||
|Cash to repay debts|10,841,064,067.53|9,792,163,833.61|
|Cash paid as dividend, profit, or|||
||691,202,152.71|967,566,960.75|
|interests|||
|Other cash paid for financing activities|||
|Sub-total of cash outflow due to|||
||11,532,266,220.24|10,759,730,794.36|
|financing activities|||
|Net cash flow generated by financing|540,247,905.39|-1,115,437,758.54|
|IV. Influence of exchange rate|||
||39,834,229.35|49,792,024.32|
|alternation on cash and cash equivalents|||
|V.Net increase of cash and cash|||
||3,058,876,409.95|-5,823,016,170.24|
|equivalents|||
|Add: balance of cash and cash|||
||4,489,630,951.08|9,090,466,146.15|
|equivalents at the beginning of term|||
|VI ..Balance of cash and cash|||
||7,548,507,361.03|3,267,449,975.91|
|equivalents at the end of term|||

The 3rd Quarterly Report 2016 II.Auditors’ Report
If the 3rd quarterly report been audited
[] Yes[V] No
The 3rd quarterly report has not been audited.