Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Bengang Steel Plates Co., Ltd.
Report for the First Quarter of 2018
April 2018
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Chapter I Important Notice
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 andintegrity of the information contained in this report.
All the members of the Board of Directors attended the board meeting on which this report was examined.
Wang Shu, Chairman of the Company, Han Ge, the principal in charge of the accounting, and Wang Shaoyu, Chief of Accounting Affairs, make the pledge for the authenticity, accuracy and integrity of the attached financial statements.
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. II Basic Information of the Company
1 Summary of accounting data and financial index
Whether the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes√ No
|||||
|-|-|-|-|
||Jan.-Mar. 2018|Jan.-Mar. 2017|Changes (+/-)|
|Operating income（RMB）|11,641,518,226.15|11,132,407,692.65|4.57%|
|Net profit attributable to the shareholders|350,629,492.24|302,653,287.07||
||||15.85%|
|of the listed company（RMB）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|347,300,210.06|295,684,784.12|17.46%|
|listed company（RMB）||||
|Net Cash flows generated by business|-8,871,507,868.81|-3,422,732,831.24||
||||208.17%|
|operation（RMB）||||
|Basic earnings per share(RMB/Share)|0.090|0.097|-7.22%|
|Diluted earnings per share(RMB/Share)|0.090|0.097|-7.22%|
|Weighted average net assets yield (%)|2.13%|2.30%|-0.17%|
||31 Mar. 2018|31 Mar. 2017|Changes (+/-)|
|Gross assets（RMB）|56,754,968,274.94|62,998,143,513.02|-9.91%|
|Net assets attributable to shareholders of|18,640,829,795.37|14,315,588,729.00||
||||30.21%|
|the listed company（RMB）||||

Items and Amount of the non-recurring gains and losses
√ Applicable□ Not applicable
Unit：Yuan
||||
|-|-|-|
|Items|Jan.-Mar. 2018|Notes|
|Profit or loss from investment or assets entrusted to others|3,493,150.68||
|Profit or loss from debt restructuring|945,892.23||
|Less: Impact of income tax|1,109,760.73||
|Total|3,329,282.18|--|

For theCompany’s non-recurring profit and loss items as defined in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” and its non-recurring profit and loss items as illustrated in “the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities 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 applicable
None of Non-recurring profit and loss items recognized as recurring profit and loss items as defined by “the Explanatory
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” in the report period.
2 Number of total shareholders and shareholdings by Top 10 shareholders at the end of the period.
(1) Number of holders of ordinary shares and preferred shares with restored voting right and Top 10 shareholdersUnit：Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||The total number of preferred|||||
|Total number of common||||shareholders whose voting|||||
|shareholders at the end of the||68,592||rights has been restored at end|||0||
|reporting period||||of the reporting 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||||
|Benxi Steel & Iron(Group) Co., Ltd.|State-ownedlegal person|58.95%|2,284,411,202|||Pledged||1,483,095,133|
|||||||Frozen||45,000,000|
|Liaoning ProvincialTransportationInvestment GroupCo., Ltd.|State-ownedlegal person|4.77%|184,842,883||184,842,883||||
|CCB Principal AssetManagement –ICBC – CR Trust –CR Trust · XingSheng No. 5Collective FundTrust Plan|Others|4.77%|184,842,883||184,842,883||||
|Bei Xin Rui FengFund – ChinaMerchants Bank –Bei Xin Rui FengFund Feng Qing No.229 AssetManagement Plan|Others|4.77%|184,842,883||184,842,883||||
|China Life AMPFund– ICBC –China Life AMP –Hua Xin Trust|Others|4.77%|184,842,883||184,842,883||||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
|||||||
|-|-|-|-|-|-|
|Targeted AdditionalShares Issuance No.10 AssetManagement Plan||||||
|VANGUARDEMERGINGMARKETS STOCKINDEX FUND|Overseas legalperson|0.21%|8,157,311|||
|Chen Jinhong|Domesticnatural person|0.17%|6,517,700|||
|Lyu Ruijun|Domesticnatural person|0.13%|5,123,100|||
|FIRST TRUSTEMERGINGMARKETSSMALL CAPALPHADEXFUND|Overseas legalperson|0.13%|4,871,043|||
|VANGUARDTOTALINTERNATIONALSTOCK INDEXFUND|Overseas legalperson|0.12%|4,606,141|||
|Shareholding of top 10 shareholders of unrestricted shares||||||
|||||Category of shares||
|||Number of non-restricted common shares held at the||||
|Name of the shareholder||||Category of||
|||period-end|||Quantity|
|||||shares||
|Benxi Steel & Iron (Group) Co., Ltd.||2,284,411,202||Common shares||
||||||2,284,411,202|
|||||in RMB||
|VANGUARD EMERGINGMARKETS STOCK INDEX FUND||8,157,311||Foreign shares||
|||||placed in||
||||||8,157,311|
|||||domestic||
|||||exchange||
|Chen Jinhong||6,517,700||Foreign shares||
|||||placed in||
||||||6,517,700|
|||||domestic||
|||||exchange||
|Lyu Ruijun||5,123,100||Foreign shares||
|||||placed in||
||||||5,123,100|
|||||domestic||
|||||exchange||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
|||||
|-|-|-|-|
|FIRST TRUST EMERGINGMARKETS SMALL CAPALPHADEX FUND|4,871,043|Foreign shares||
|||placed in||
||||4,871,043|
|||domestic||
|||exchange||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND|4,606,141|Foreign shares||
|||placed in||
||||4,606,141|
|||domestic||
|||exchange||
|Yu Xiaofan|4,002,707|Foreign shares||
|||placed in||
||||4,002,707|
|||domestic||
|||exchange||
|Liu Hongqing|3,490,000|Common shares||
||||3,490,000|
|||in RMB||
|Wu Zhanglin|3,395,200|Common shares||
||||3,395,200|
|||in RMB||
|Haitong International SecuritiesCompany Limited-Account Client|3,161,109|Foreign shares||
|||placed in||
||||3,161,109|
|||domestic||
|||exchange||
||Benxi Steel & Iron (Group) Co., Ltd., the holding shareholder, has no relationship with any of|||
||the other shareholders among the top 10 shareholders, neither being regarded as|||
||action-in-concert parties by the Information Disclosure Regulations for Change of|||
|Related-parties or acting-in-concert|Shareholding in listed companies. The Company is not aware of any relationship among the|||
|parties among the above-mentioned|other shareholders, neither being regarded as action-in-concert parties by the Information|||
|shareholders|Disclosure Regulations for Change of Shareholding in listed companies. The Company is not|||
||aware of any relationship among the top 10 shareholders, neither being regarded as|||
||action-in-concert parties by the Information Disclosure Regulations for Change of|||
||Shareholding in listed companies.|||
||Benxi Steel & Iron (Group) Co., Ltd. holds 2,034,411,202 shares of the company through an|||
||ordinary securities account, and holds 250,000,000 shares through the investor's credit|||
|Shareholders among the top 10||||
||securities account, therefore, it holds a total of 2,284,411,202 shares. Liu Hongqing holds|||
|participating in Securities lending||||
||3,490,000 shares of the company through an investor's credit securities account, and Wu|||
|and borrowing business（if any）||||
||Zhanglin holds 3,395,200 shares of the company through an investor's credit securities|||
||account.|||

Whether top ten common shareholders or top ten common shareholders with unrestricted shares carried out any buy-back agreement dealing in the reporting period.
□ Yes√ No
Top ten common shareholders or top ten common shareholders with unrestricted shares did not carry out buy-back agreement dealing
in the reporting period. .
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. (2) Number of total preferred shareholders and preferred shares hold by Top 10 preferred shareholders
□ Applicable√ Not applicable
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. III Important Events
1 Major changes in main accounting statement items and financial indicators within the reporting period, as well as reasons for the changes.
√ Applicable□ Not applicable
 Significant changes and reasons in major accounting data, financial indicators which changed over30% compared to the consolidated financial statement at the end of 2017
||||
|-|-|-|
|1. Financial Position Statement items|Increase /Decrease|Reasons|
|Cash at bank and on hand|-35%|Due to repayment of the arrears in the current period|
|Other current assets|-72%|Due to the redeem of financial products|
|Construction in progress|-37%|Due to the increase of construction materials usage|
|Notes payable|-67%|Due to the increase of the solution pay of notespayable at maturity|
|Advance from customers|-31%|Due to the decrease of production|
|Tax payable|-73%|Due to the decrease of tax payable at the end of thisperiod|
|Interests payable|-69%|Due to the decrease of provision of corporate bondinterest|
|Capital reserves|35%|Due to premium of targeted additional shares issuance|
|Special reserves|1447%|Due to the decrease of payment of safety productioncost|
|Undistributed profits|32%|Due to the increase of net profit|

 Significant changes and reasons in major accounting data, financial indicators which changed over30% compared to the consolidated financial statement of the first quarter of 2017
||||
|-|-|-|
|2. Income Statement items|Increase /Decrease|Reasons|
|General and administrative expenses|38%|Due to the increase of employee benefits and repaircosts|
|Financial expenses|-133%|Due to the increase of exchange gains|
|Income on investment|60%|Due to the increase of income on financial products|
|Non-operating income|-83%|Due to the reclassification of government subsidy intoother income|
|Non-operating expenses|-100%|Due to non-occurrence of disposal of fixed assets|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. Income tax expenses -90% Due to the decrease of deferred income tax
||||
|-|-|-|
|Profit or loss of non-controllingshareholders|-88%|Due to the decrease of profit of holding subsidiaries|

||||
|-|-|-|
|3. Cash flow items|Increase /Decrease|Reasons|
|Tax rebate received|80%|Due to the increase of tax rebate received|
|Cash paid for goods and services|61%|Due to the increase of repayment of the arrears in thecurrent period|
|Subtotal of cash outflows fromoperating activities|57%|Due to the increase of repayment of the arrears in thecurrent period|
|Net cash flows generated fromoperating activities|159%|Due to the increase of repayment of the arrears in thecurrent period|
|Cash received from return oninvestments|214%|Due to the increase of redeem of financial products|
|Cash received from distribution ofdividends or profit|60%|Due to the increase of income on financial products|
|Proceeds from investment|100%|Due to the investment received from targetedadditional shares issuance|
|Cash repayments of borrowings|61%|Due to the increase of repayment of bank loans|
|The net cash flow generated byfinancing activities|63%|Due to the investment received from targetedadditional shares issuance|

2 Progress and influence of significant events, as well as the analysis and explanation on solutions
□ Applicable√ Not applicable
3 Commitments not finished and is overdue in the reporting period by actual controller, shareholders, related parties, acquirer, and other commitments parties.
□ Applicable√ Not applicable
There is no commitments not finished and is overdue in the reporting period by actual controller, shareholders, related parties, acquirer, and other commitments parties.
4 Forecast of operating results for Jan. 2018-June 2018
Warning of possible loss or considerable change of the accumulated net profit made during the period-start until the end of the next
reporting period according to predictions as well as any explanations for these reasons:
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.□ Applicable√ Not applicable
5 Securities investment
□ Applicable√ Not applicable
There is no securities investments in the reporting period.
6 Investment in Derivatives
□ Applicable√ Not applicable
There is no investment in derivatives in the reporting period.
7 Particulars about researches, visits and interviews received in this reporting period
□ Applicable√ Not applicable
There is no researches, visits and interviews received in the reporting period.
8 Illegal Guarantee
□ Applicable√ Not applicable
There was no illegal guarantee during the reporting period.
9 Particulars about the non-operating occupation of funds by the controlling shareholder□ Applicable√ Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed company in the reporting period.
Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd. IV Financial Statements
1 Financial Statements
(1) Consolidated Statement of Financial Position
Prepared by: Bengang Steel Plates Co., Ltd.
As at 31 March 2018
Unit：Yuan
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current assets：|||
|Cash at bank and on hand|11,093,558,097.39|17,037,713,410.49|
|Settlement provisions|||
|Capital lent|||
|Financial assets at fair value|||
|through profit or loss|||
|Derivative financial assets|||
|Notes receivable|3,843,305,009.16|3,846,433,700.87|
|Accounts receivable|759,164,807.27|728,597,926.39|
|Prepayments|1,180,446,504.01|1,280,689,094.33|
|Premium receivable|||
|Reinsurance accounts receivable|||
|Receivable deposit for reinsurance|||
|contract|||
|Interests receivable|16,293,285.16|18,448,520.50|
|Dividends receivable|||
|Other receivables|296,536,545.14|290,376,985.34|
|Redemptory financial assets for|||
|sale|||
|Inventories|11,849,685,609.68|11,209,898,096.16|
|Assets classified as held for sale|||
|Non-current assets due within one|||
|year|||
|Other current assets|223,617,780.92|809,322,127.79|
|Total current assets|29,262,607,638.73|35,221,479,861.87|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Non-current assets：|||
|Loan and advances issued|||
|Available-for-sale financial assets|3,888,980.00|3,888,980.00|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investments|2,726,009.03|2,726,009.03|
|Investment properties|||
|Fixed assets|23,423,813,190.26|23,852,067,166.10|
|Construction in progress|2,512,650,530.63|2,391,584,410.46|
|Construction materials|2,880,287.12|4,558,919.60|
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|283,074,289.92|253,884,881.48|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred tax assets|195,992,526.13|200,618,461.36|
|Other non-current assets|1,067,334,823.12|1,067,334,823.12|
|Total non-current assets|27,492,360,636.21|27,776,663,651.15|
|Total assets|56,754,968,274.94|62,998,143,513.02|
|Current Liabilities：|||
|Short-term loans|20,988,248,400.00|21,999,103,900.00|
|Loan from central bank|||
|Absorbed deposit and interbank|||
|deposit|||
|Loan from other financial|||
|institutions|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Advance from customers|||
|Notes payable|3,742,684,341.50|11,494,589,827.27|
|Accounts payable|3,750,475,693.36|3,897,668,513.77|
|Advance from customers|2,267,165,181.31|3,308,567,598.05|
|Financial assets sold for|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|repurchase|||
|Handling charges and commission|||
|payable|||
|Employee benefits payable|36,205,319.16|43,722,537.58|
|Current tax liabilities|23,604,657.69|87,807,128.50|
|Interests payable|26,252,770.25|84,139,288.02|
|Dividends payable|||
|Other payables|540,233,649.65|576,989,932.31|
|Reinsurance accounts payable|||
|Provision for insurance contract|||
|Receipt from vicariously traded|||
|securities|||
|Receipt from vicariously|||
|underwriting securities|||
|Liabilities held for sale|||
|Non-current liabilities due within|||
||3,710,868,973.54|3,811,540,590.84|
|one year|||
|Other current liabilities|23,574,344.57|27,979,093.21|
|Total current liabilities|35,109,313,331.03|45,332,108,409.55|
|Non-current liabilities：|||
|Long-term loans|2,098,295,484.06|2,444,185,630.28|
|Bonds payable|||
|Including: Preferred stock|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits|||
|payable|||
|Special accounts payable|||
|Estimated liabilities|||
|Deferred income|372,601,561.30|372,785,000.00|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|2,470,897,045.36|2,816,970,630.28|
|Total liabilities|37,580,210,376.39|48,149,079,039.83|
|Shareholders’ equity:|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Share capital|3,875,371,532.00|3,136,000,000.00|
|Other equity instruments|||
|Including: Preferred stock|||
|Perpetual bond|||
|Capital reserves|12,343,209,847.29|9,114,845,542.05|
|Less: treasury shares|||
|Other comprehensive income|||
|Special reserves|7,350,783.64|475,046.75|
|Surplus reserves|961,105,529.85|961,105,529.85|
|General risk reserve|||
|Undistributed profits|1,453,792,102.59|1,103,162,610.35|
|Total equity attributable to equity|||
||18,640,829,795.37|14,315,588,729.00|
|holders of the parent company|||
|Non-controlling interests|533,928,103.18|533,475,744.19|
|Total shareholder’s equity|19,174,757,898.55|14,849,064,473.19|
|Total liabilities and shareholder’s equity|56,754,968,274.94|62,998,143,513.02|

 LegalRepresentative：Wang Shu Person in charge ofaccounting：Han Ge Accounting DeptLeader：Wang Shaoyu
(2) Balance sheet of Parent Company
Unit：Yuan
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current assets：|||
|Cash at bank and on hand|10,479,896,112.30|16,717,913,081.42|
|Financial assets at fair value|||
|through profit or loss|||
|Derivative financial assets|||
|Notes receivable|3,575,837,787.96|3,515,361,992.96|
|Accounts receivable|520,075,140.22|482,181,593.45|
|Prepayments|1,180,446,504.01|1,280,354,579.87|
|Interests receivable|16,293,285.16|18,377,036.96|
|Dividends receivable|||
|Other receivables|398,937,446.74|376,863,448.72|
|Inventories|9,571,138,419.47|9,228,860,225.75|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Assets classified as held for sale|||
|Non-current assets due within one|||
|year|||
|Other current assets|223,617,780.92|682,211,823.73|
|Total current assets|25,966,242,476.78|32,302,123,782.86|
|Non-current assets：|||
|Available-for-sale financial assets|3,888,980.00|3,888,980.00|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investments|1,930,481,902.16|1,756,981,902.16|
|Investment properties|||
|Fixed assets|21,303,700,826.29|21,621,369,452.27|
|Construction in progress|2,495,900,067.44|2,383,533,130.37|
|Construction materials|2,455,500.80|4,134,133.28|
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|151,255,780.92|152,082,315.24|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred tax assets|95,563,986.10|100,189,921.33|
|Other non-current assets|1,037,735,849.00|1,037,735,849.00|
|Total non-current assets|27,020,982,892.71|27,059,915,683.65|
|Total assets|52,987,225,369.49|59,362,039,466.51|
|Current Liabilities：|||
|Short-term loans|19,405,839,000.00|20,499,694,500.00|
|Financial liabilities at fair value|||
|through profit or loss|||
|Advance from customers|||
|Notes payable|3,214,532,767.20|10,866,669,546.93|
|Accounts payable|3,901,242,450.32|4,184,763,509.38|
|Advance from customers|2,087,038,774.20|3,217,423,443.14|
|Employee benefits payable|35,842,167.15|42,380,713.02|
|Current tax liabilities|3,476,856.86|66,903,531.67|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Interests payable|17,450,000.00|79,074,426.27|
|Dividends payable|||
|Other payables|399,948,764.62|343,211,639.65|
|Liabilities held for sale|||
|Non-current liabilities due within|||
||3,710,868,973.54|3,811,540,590.84|
|one year|||
|Other current liabilities|23,574,344.57|27,979,093.21|
|Total current liabilities|32,799,814,098.46|43,139,640,994.11|
|Non-current liabilities：|||
|Long-term loans|2,098,295,484.06|2,444,185,630.28|
|Bonds payable|||
|Including: Preferred stock|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits|||
|payable|||
|Special accounts payable|||
|Estimated liabilities|||
|Deferred income|372,601,561.30|372,785,000.00|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|2,470,897,045.36|2,816,970,630.28|
|Total liabilities|35,270,711,143.82|45,956,611,624.39|
|Shareholders’ equity:|||
|Share capital|3,875,371,532.00|3,136,000,000.00|
|Other equity instruments|||
|Including: Preferred stock|||
|Perpetual bond|||
|Capital reserves|11,923,058,165.17|8,694,693,859.93|
|Less: treasury shares|||
|Other comprehensive income|||
|Special reserves|5,953,580.47|276,727.96|
|Surplus reserves|961,105,529.85|961,105,529.85|
|Undistributed profits|951,025,418.18|613,351,724.38|
|Total shareholder’s equity|17,716,514,225.67|13,405,427,842.12|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Total liabilities and shareholder’s equity|52,987,225,369.49|59,362,039,466.51|

 (3) Consolidated Statement of Comprehensive Income
Unit：Yuan
||||
|-|-|-|
|Items|Jan.-Mar.2018|Jan.-Mar.2017|
|1. Total operating income|11,641,518,226.15|11,132,407,692.65|
|Including: Operating income|11,641,518,226.15|11,132,407,692.65|
|Interest income|||
|Premium earned|||
|Income from handling|||
|charges and commission|||
|2. Total operating cost|11,292,484,306.53|10,738,188,697.63|
|Including: Operating cost|10,774,961,797.37|9,930,127,676.02|
|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|93,231,022.33|77,416,977.43|
|Selling and distribution|||
||270,705,255.98|309,701,590.37|
|expenses|||
|General and administrative|||
||236,415,300.35|171,564,522.91|
|expenses|||
|Financial expenses|-82,829,069.50|249,377,930.90|
|Asset impairment loss|||
|Add: Gains from the change in fair|||
|value ("-" for loss)|||
|Income on investment ("-" for|||
||3,493,150.68|2,186,117.80|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Exchange gain ("-" for loss)|||
|Assets disposal gains ("-" for|||
|loss)|||
|Other income|6,463,438.70||
|3 Operating profit ("-" for loss|358,990,509.00|396,405,112.82|
|Add: Non-operating income|1,585,742.03|9,446,503.65|
|Less: Non-operating expenses||2,338,387.11|
|4 Total profit ("-" for total loss)|360,576,251.03|403,513,229.36|
|Less: Income tax expenses|9,494,399.80|97,028,442.48|
|5 Net Profit ("-" for net loss)|351,081,851.23|306,484,786.88|
|Net profit from continuing operation|||
||351,081,851.23|306,484,786.88|
|("-" for loss)|||
|Net profit from discontinued|||
|operation ("-" for loss)|||
|Attributable to: Owners of parent|||
||350,629,492.24|302,653,287.07|
|company|||
|Non-controlling shareholders|452,358.99|3,831,499.81|
|6. Other comprehensive income after tax|||
|Other comprehensive income|||
|attributable to owners of parent company|||
|after tax|||
|1) Other comprehensive income|||
|unable to be reclassified into profit and|||
|loss afterwards|||
|1.Change of net liabilities or|||
|net assets through remeasuring defined|||
|benefit plan|||
|2.Share of other|||
|comprehensive income of investee not to|||
|be classified into profit or loss afterwards|||
|under equity method|||
|2) Other comprehensive income to|||
|be reclassified into profit and loss|||
|afterwards|||
|1.Share of other|||
|comprehensive income of investee to be|||
|classified into profit or loss afterwards|||
|under equity method|||
|2. Gains and losses on|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|remeasuring available-for-sale financial|||
|assets|||
|3.Gains and losses resulting|||
|from reclassification of held-to maturity|||
|investment to financial assets held-for|||
|sale|||
|4.Effective portion of gains|||
|or losses from cash flow hedging|||
|5.|||
|Gains and losses resulting from translatin|||
|g the foreign currency|||
|financial statements|||
|6.Others|||
|Other comprehensive income|||
|attributable to non-controlling|||
|shareholders after tax|||
|7. Total comprehensive income|351,081,851.23|306,484,786.88|
|Total comprehensive income|350,629,492.24||
|||302,653,287.07|
|attributable to owners of parent company|||
|Total comprehensive income|||
|attributable to non-controlling|452,358.99|3,831,499.81|
|shareholders|||
|8. Earnings per share:|||
|（1）Basic earnings per share|0.090|0.097|
|（2）Diluted earnings per share|0.090|0.097|

 LegalRepresentative：Wang Shu Person in charge ofaccounting：Han Ge Accounting DeptLeader：Wang Shaoyu
(4) Income Statement of the Parent Company
Unit：Yuan
||||
|-|-|-|
|Items|Jan.-Mar. 2018|Jan.-Mar. 2017|
|1 Operating income|11,808,077,059.64|11,398,661,706.90|
|Less: Operating cost|11,117,984,591.44|10,366,737,537.66|
|Taxes and surcharges|86,278,192.35|70,478,527.46|
|Selling and distributionexpenses|||
||145,350,744.25|200,688,771.46|
|General and administrative|224,716,557.40|160,222,229.54|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|expenses|||
|Financial expenses|-97,141,152.03|231,289,051.43|
|Asset impairment loss|||
|Add: Gains from the change|||
|in fair value ("-" for loss)|||
|Income on investment ("-" for|||
||3,493,150.68|2,186,117.80|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||
|Assets disposal gains ("-" for|||
|loss)|||
|Other income|6,463,438.70||
|2 Operating profit ("-" for loss)|340,844,715.61|371,431,707.15|
|Add: Non-operating income|1,454,913.42|8,796,284.46|
|Less: Non-operating expenses||2,338,387.11|
|3 Total profit ("-" for total loss)|342,299,629.03|377,889,604.50|
|Less: Income tax expenses|4,625,935.23|87,971,810.96|
|4 Net Profit ("-" for net loss)|337,673,693.80|289,917,793.54|
|Net profit from continuing|||
||337,673,693.80|289,917,793.54|
|operation ("-" for loss)|||
|Net profit from discontinued|||
|operation ("-" for loss)|||
|5 Other comprehensive income after tax|||
|1) Other comprehensive income|||
|unable to be reclassified into profit and|||
|loss afterwards|||
|1.Change of net liabilities|||
|or net assets through remeasuring|||
|defined benefit plan|||
|2.Share of other|||
|comprehensive income of investee not|||
|to be classified into profit or loss|||
|afterwards under equity method|||
|2) Other comprehensive income to|||
|be reclassified into profit and loss|||
|afterwards|||
|1.Share of other|||
|comprehensive income of investee to be|||
|classified into profit or loss afterwards|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|under equity method|||
|2 Gains and losses on|||
|remeasuring available-for-sale financial|||
|assets|||
|3.Gains and losses resulting|||
|from reclassification of held-to maturity|||
|investment to financial assets held-for|||
|sale|||
|4.Effective portion of gains|||
|or losses from cash flow hedging|||
|5.|||
|Gains and losses resulting from translati|||
|ng the foreign currency|||
|financial statements|||
|6.Others|||
|6 Total comprehensive income|337,673,693.80|289,917,793.54|
|7 Earnings per share：|||
|（1）Basic earnings per share|||
|（2）Diluted earnings per share|||

(5) Consolidated Statement of Cash Flows
Unit：Yuan
||||
|-|-|-|
|Items|Jan.-Mar. 2018|Jan.-Mar. 2017|
|1.Cash flow from operating activities：|||
|Cash received from sale of goods|||
||7,731,797,062.14|7,100,739,711.79|
|or 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|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|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|72,002,572.86|40,096,198.40|
|Other cash received relating to|||
||60,576,344.20|69,675,649.95|
|operating activities|||
|Subtotal of cash inflow received from|||
||7,864,375,979.20|7,210,511,560.14|
|operation activities|||
|Cash paid for goods and services|15,907,402,800.35|9,858,638,834.91|
|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|||
|Cash for payment of interest,|||
|handling charge and commission|||
|Cash for payment of policy bonus|||
|Cash paid to and on behalf of|||
||481,878,788.59|453,316,467.11|
|employees|||
|Cash paid for all types of taxes|322,300,081.76|296,159,456.20|
|Other cash paid relating to|||
||24,302,177.31|25,129,633.16|
|operating activities|||
|Subtotal of cash outflow received from|||
||16,735,883,848.01|10,633,244,391.38|
|operation activities|||
|Net cash flows generated from|||
||-8,871,507,868.81|-3,422,732,831.24|
|operating activities|||
|2. Cash flows from investing|||
|activities：|||
|Cash received from return on|||
||500,000,000.00|159,000,000.00|
|investments|||
|Cash received from distribution of|3,493,150.68|2,186,117.80|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|dividends or profit|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|||
|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|||
||503,493,150.68|161,186,117.80|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|367,847,024.60|486,764,678.93|
|long-term assets|||
|Cash paid for acquisition of|||
|investments|||
|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|||
||367,847,024.60|486,764,678.93|
|investing activities|||
|The net cash flow generated by|||
||135,646,126.08|-325,578,561.13|
|investment activities|||
|3. Cash flows from financing|||
|activities：|||
|Proceeds from investment|3,965,799,988.19||
|Including: Proceeds from|||
|investment of non-controlling|||
|shareholders of subsidiary|||
|Proceeds from borrowings|6,576,220,000.00|6,602,518,658.09|
|Cash received from bond issuance|||
|Other proceeds relating to|||
|financing activities|||
|Subtotal cash inflow received from|||
||10,542,019,988.19|6,602,518,658.09|
|financing activities|||
|Cash repayments of borrowings|6,452,965,440.62|3,997,546,531.91|
|Cash payments for distribution of|292,806,531.43|282,352,521.52|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|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|||
||6,745,771,972.05|4,279,899,053.43|
|financing activities|||
|The net cash flow generated by|||
||3,796,248,016.14|2,322,619,604.66|
|financing activities|||
|4. Effect of foreign exchange rate|||
||-6,488,117.13|-8,665,398.73|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-4,946,101,843.72|-1,434,357,186.44|
|equivalents|||
|Add: Cash and cash equivalents at|||
||12,317,576,778.93|12,273,574,488.67|
|the beginning of the period|||
|6. Cash and cash equivalents at the|||
||7,371,474,935.21|10,839,217,302.23|
|ending of the period|||

(6) Cash Flow Statement of Parent Company
Unit：Yuan
||||
|-|-|-|
|Items|Jan.-Mar. 2018|Jan.-Mar. 2017|
|1.Cash flow from operating activities：|||
|Cash received from sale of goods|||
||7,332,137,869.58|7,138,918,917.92|
|or rendering of services|||
|Tax rebate received|135,442.49|4,990,848.26|
|Other cash received relating to|||
||42,405,069.68|50,953,435.38|
|operating activities|||
|Subtotal of cash inflow received from|||
||7,374,678,381.75|7,194,863,201.56|
|operation activities|||
|Cash paid for goods and services|15,657,723,198.78|9,605,833,537.74|
|Cash paid to and on behalf of|||
||456,027,325.34|429,807,971.99|
|employees|||
|Cash paid for all types of taxes|289,677,174.70|271,085,915.47|
|Other cash paid relating to|||
||20,458,086.55|20,753,329.17|
|operating activities|||
|Subtotal of cash outflow received from|16,423,885,785.37|10,327,480,754.37|

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|operation activities|||
|Net cash flows generated from|||
||-9,049,207,403.62|-3,132,617,552.81|
|operating activities|||
|2. Cash flows from investing|||
|activities：|||
|Cash received from return on|||
||500,000,000.00|159,000,000.00|
|investments|||
|Cash received from distribution of|||
||3,493,150.68|2,186,117.80|
|dividends or profit|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|||
|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|||
||503,493,150.68|161,186,117.80|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|366,691,846.42|474,766,092.93|
|long-term assets|||
|Cash paid for acquisition of|||
||173,500,000.00||
|investments|||
|Net cash received from subsidiary|||
|and other operating unit|||
|Other cash paid relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||540,191,846.42|474,766,092.93|
|investing activities|||
|The net cash flow generated by|||
||-36,698,695.74|-313,579,975.13|
|investment activities|||
|3. Cash flows from financing|||
|activities：|||
|Proceeds from investment|3,965,799,988.19||
|Proceeds from borrowings|6,053,220,000.00|5,978,931,200.00|
|Cash received from bond issuance|||
|Other proceeds relating to|||
|financing activities|||

Report for the First Quarter of 2018 of Bengang Steel Plates Co., Ltd.
||||
|-|-|-|
|Subtotal cash inflow received from|||
||10,019,019,988.19|5,978,931,200.00|
|financing activities|||
|Cash repayments of borrowings|6,012,965,440.62|3,743,326,531.91|
|Cash payments for distribution of|||
||279,903,047.33|267,274,159.52|
|dividends, profit or interest expenses|||
|Other cash payments relating to|||
|financing activities|||
|Subtotal of cash outflows from|||
||6,292,868,487.95|4,010,600,691.43|
|financing activities|||
|The net cash flow generated by|||
||3,726,151,500.24|1,968,330,508.57|
|financing activities|||
|4. Effect of foreign exchange rate|||
||-6,484,800.97|-8,663,163.83|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-5,366,239,400.09|-1,486,530,183.20|
|equivalents|||
|Add: Cash and cash equivalents at|||
||12,152,285,550.21|11,876,536,613.66|
|the beginning of the period|||
|6. Cash and cash equivalents at the|||
||6,786,046,150.12|10,390,006,430.46|
|ending of the period|||

2Auditors’ report
Whether First quarter report has been audited by a CPAs firm.
□ Yes√ No
The First quarter report has not been audited by a CPAs firm.