Bengang Steel Plates Co., Ltd. Third Quarter Report 2017 Bengang Steel Plates Co., Ltd.
Third Quarter Report 2017
October 2017
Bengang Steel Plates Co., Ltd. Third Quarter Report 2017 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.
Bengang Steel Plates Co., Ltd. Third Quarter Report 2017 II. Company Profile
I. 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
||||||||
|-|-|-|-|-|-|-|
||||At the end of previous year||Increase or decrease in this||
||At the end of the current||||||
||||||reporting period over the||
||period||||||
||||||previous year (%)||
|Total assets（RMB）|56,692,375,310.29||54,155,710,718.91||4.68%||
|Net assets attributable to|14,061,150,233.15||12,715,354,551.15||||
|shareholders of the listed company|||||10.58%||
|（RMB）|||||||
|||Increase or decrease|||||
|||||From the beginning of||Compare to the same|
|||compared to the same|||||
||This reporting period|||the year to the end of||period of the previous|
|||period of the previous|||||
|||||the current period||year|
|||year|||||
|Operating income（RMB）|9,640,672,901.66|31.12%||30,377,159,805.40||52.02%|
|Net profit attributable to the|810,662,349.27|||1,334,298,002.84|||
|shareholders of the listed company||106.76%||||132.21%|
|（RMB）|||||||
|Net profit after deducting of|||||||
|non-recurring gain/loss attributable|||||||
||803,806,749.08|111.39%||1,312,680,172.92||140.97%|
|to the shareholders of listed|||||||
|company（RMB）|||||||
|Net Cash flow generated by||||-4,105,433,271.11|||
||--|--||||-212.58%|
|business operation（RMB）|||||||
|Basic earnings per|0.259|||0.425|||
|||107.20%||||132.24%|
|share(RMB/Share)|||||||
|Diluted gains per|0.259|||0.425|||
|||107.20%||||132.24%|
|share(RMB/Share)|||||||
|Weighted average net assets yield|||||||
||6.18%|2.97%||9.97%||5.25%|
|(%)|||||||

Items and amount of non-recurring profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Items|From the beginning of the||
|||Notes|
||year to the end of the current||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
||period||
|Profit or loss from disposal of non-current assets (including the|||
||-4,990,694.81||
|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’s normal business operation, meeting the regulation of|22,993,400.00||
|national policy and enjoyed constantly in certain quota or quantity|||
|according to a certain standard）|||
|Profit or loss from investment or assets entrusted to others|3,294,593.14||
|Profit or loss from debt restructuring|4,720,886.02||
|Other non-operating revenue and expenditure other than above|||
||2,879,351.48||
|items|||
|Less: Impact of income tax|7,224,383.96||
|Impact of minority interests (after tax)|55,321.95||
|Total|21,617,829.92|--|

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
Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Profits and Losses” in the report period.
II. Total Number of Shareholders and Shareholding of top 10 shareholders
1. Total number of common shareholders, preferred shareholders whose voting rights restored, and shareholding of top 10 shareholders
Unit: Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||The total number of|||||
|Total number of common||||preferred shareholders whose|||||
|shareholders at the end of the||68,506||voting rights restored at the|||0||
|reporting period||||end of the reporting period|||||
|||||（If any）|||||
|Shareholding of top 10 shareholders|||||||||
|Name of the|Nature of|Holding|||Restricted shares|Quantity of pledged or frozen shares|||
||||Number of shares||||||
|shareholder|shareholder|Percentage|||held|Status||Quantity|
|Benxi Steel &|State-owned legal|72.84%|2,284,411,202|||Pledged||1,483,095,133|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
|||||||
|-|-|-|-|-|-|
|Iron (Group) Co.,Ltd.|person|||||
|||||Frozen|45,000,000|
|Ma Tengyun|Domestic naturalperson|0.42%|13,298,900|||
|Bank ofCommunicationLimited-Changxin QuantificationPioneer MixedSecuritiesInvestment Fund|Others|0.30%|9,474,258|||
|BBH A/CVANGUARDEMERGINGMARKETSSTOCK INDEXFUND|Overseas legalperson|0.26%|8,157,311|||
|Industrial andCommercialBank of ChinaLimited-SouthBig Data 100Index SecuritiesInvestment Fund|Others|0.24%|7,452,851|||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Overseas legalperson|0.17%|5,376,122|||
|Chen Jinhong|Domestic naturalperson|0.16%|5,077,500|||
|VANGUARDTOTALINTERNATIONAL STOCKINDEX FUND|Overseas legalperson|0.15%|4,606,141|||
|Yu Xiaofan|Domestic naturalperson|0.14%|4,409,896|||
|Liu Shihong|Domestic naturalperson|0.12%|3,859,240|||
|Shareholding of top 10 shareholders of unrestricted shares||||||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
|||||
|-|-|-|-|
|||Category of shares||
|Name of the shareholder|Number of un-restricted shares held|Category of||
||||Quantity|
|||shares||
|Benxi Steel & Iron (Group) Co., Ltd.|2,284,411,202|Common shares||
||||2,284,411,202|
|||in RMB||
|Ma Tengyun|13,298,900|Common shares||
||||13,298,900|
|||in RMB||
|Bank of CommunicationLimited-Changxin QuantificationPioneer Mixed Securities InvestmentFund|9,474,258|||
|||Common shares||
||||9,474,258|
|||in RMB||
|BBH A/C VANGUARDEMERGING MARKETS STOCKINDEX FUND|8,157,311|Foreign shares||
|||placed in||
||||8,157,311|
|||domestic||
|||exchange||
|Industrial and Commercial Bank ofChina Limited-South Big Data 100Index Securities Investment Fund|7,452,851|||
|||Common shares||
||||7,452,851|
|||in RMB||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|5,376,122|Foreign shares||
|||placed in||
||||5,376,122|
|||domestic||
|||exchange||
|Chen Jinhong|5,077,500|Common shares||
||||5,077,500|
|||in RMB||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND|4,606,141|Foreign shares||
|||placed in||
||||4,606,141|
|||domestic||
|||exchange||
|Yu Xiaofan|4,409,896|Foreign shares||
|||placed in||
||||4,409,896|
|||domestic||
|||exchange||
|Liu Shihong|3,859,240|Foreign shares||
|||placed in||
||||3,859,240|
|||domestic||
|||exchange||
|Notes to relationship or ‘action in||||
|concert’ among the top 10|It is unknown to the Company whether there is any related connection or action-in-concert|||
|non-restricted shareholders, and|parties among the top 10 un-restricted shareholders.|||
|among the top 10 non-restricted||||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
|||
|-|-|
|shareholders and top 10 shareholders||
|Shareholders among the top 10||
|participating in securities margin|None|
|trading (if any)||

Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreement dealing in reporting period
□ Yes√ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back agreement dealing in reporting period.
2. Total Number of Preferred Shareholders and Shareholding of Top 10 Preferred Shareholders
□ Applicable√ Not applicable
Bengang Steel Plates Co., Ltd. Third Quarter Report 2017 III. Important Events
I. Major Changes in Financial Data and Financial Index And Reason
√ Applicable□ Not applicable
||||
|-|-|-|
| Items and reasons for the change of more than 30% compared with the beginning of the year in the consolidated statement|||
|1. Items of Financial Position|Increase/||
|||Reasons|
|Statement|Decrease||
|Notes receivables|126%|Due to an increase in debt collection|
|Interests receivables|-32%|Due to a decrease of interest accrued on fixed time deposits|
|Other receivables|30%|Due to an increase in receivables and payables|
|Other current assets|-48%|Due to the reduction of short-term banking products|
|Available-for-sale financial assets|-61%|Due to the transfer to long-term equity investments|
|Construction materials|-41%|Due to a decrease in using construction materials|
||-60%|Due to the use of deferred tax assets to cover the deficit during the current|
|Deferred tax assets|||
|||period|
|Notes payables|-38%|Due to the solution pay of notes at maturity|
|Employee benefits payable|78%|Due to an increase on employee benefits|
|Current tax liabilities|-56%|Due to a decrease in current tax liabilities at the end of the current period|
|Non-current liabilities due within one|373%||
|||Due to an increase in long-term loans due within one year|
|year|||
|Long-term loans|-38%|Due to a decrease in long-term loans|
|Special reserves|3085%|Due to a decrease in expenses for safety use|
|Undistributed profits|268%|Due to an increase in net profits|
| Items and reasons for the change of more than 30% compared to January to September, 2016 in the consolidated statement|||
|2. Statement of comprehensive|Increase/||
|||Reasons|
|income|Decrease||
|Operating income|52%|The settlement price of products increased over the beginning of the year.|
|Operating cost|57%|Purchase price of materials increased over the beginning of the year.|
|||Property tax, land use tax, vehicle and vessel use tax, stamp tax are reclassified|
|Taxes and surcharges|212%|from “General and administrative expenses” to “Tax and surcharges” this|
|||period.|
|Selling and distribution expenses|32%|Freight expenses increased over the beginning of the year.|
|Financial expenses|-33%|Net exchange losses increased over the beginning of the year.|
|Asset impairment loss|1577%|The price of products increased and the preparation on|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|||inventory-valuation loss is offset.|
|||Income from short-term financial products increased over same period in|
|Income on investment|479%||
|||previous year.|
|Non-operating expenses|7942%|Fixed assets disposal loss increased over the beginning of the year.|
|Attributable to owners of parent|||
||132%|The price of products increased over the beginning of the year.|
|company|||
|Attributable to non-controlling|||
||-82%|Profit of the holding subsidiaries decreased over the beginning of the year.|
|shareholders|||
||Increase/||
|3. Statement of cash flows||Reasons|
||Decrease||
|Tax rebate received|-30%|Tax rebate received decreased over the beginning of the year.|
|Cash paid for goods and services|102%|Cash paid for goods and services increased over the beginning of the year.|
|Cash paid for all types of taxes|62%|Cash paid for all types of taxes increased over the beginning of the year.|
|Net cash flows from operating activities|-213%|Cash flows from operating activities increased over the beginning of the year.|
|Cash received from return on||Short-term banking products received this period increased over same period in|
||41%||
|investments||previous year.|
|Cash received from distribution of|||
||479%|Income from financial products increased over same period in previous year.|
|dividends or profit|||
|Cash paid for acquisition of investments|-34%|Short-term banking products purchased this period reduced.|
|Cash received from borrowings|51%|Cash received from bank loans increased over the beginning of the year.|
|Net cash flows from financing activities|522%|Net financed assets increased over the beginning of the year.|

II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
□ Applicable√ Not applicable
III. The Under-Fulfillment Commitments by the End of the Period Made by Actual Controller, Acquirer, Director, Supervisor, Senior Management Personnel and other Related Parties.
□ Applicable√ Not applicable
There was no under-fulfillment commitment by the end of the period made by actual controller, acquirer, director, supervisor, senior management personnel and other related parties.
IV. Forecast towards Operating Performance of 2017
Warning and reason for that forecast of the cumulative net profit from the beginning of the year to the end of the next reporting
period might be a loss or due to significant change compared to the previous year
□ Applicable√ Not applicable
Bengang Steel Plates Co., Ltd. Third Quarter Report 2017 V. Investment in Securities
□ Applicable√ Not applicable
There is no investment in securities during the reporting period.
VI. Investment in Derivatives
□ Applicable√ Not applicable
There is no investment in derivatives during the reporting period.
VII. Registration form of Activities such as Research, Communication, Interview in this Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
|20 July, 2017|Onsite investigation|Organization|http://www.cninfo.com.cn|

VIII. Violation of Regulations in Provision of External Guaranty
□ Applicable√ Not applicable
There is no violation of regulations in provision of external guaranty during the reporting period.
IX. Illustrations of Non-Operating Occupation of Funds by the Controlling Shareholder and Related Parties
□ Applicable√ Not applicable
There are no non-operating occupation of funds by the controlling shareholder and related parties
X. Performing Corporation Social Responsibility of Targeted Poverty Alleviation
The company has not carried out targeted poverty alleviation work during the reporting period, and has no plan for follow-up targeted poverty alleviation.
IV. Financial Statements
I. Financial Statements
1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Prepared by: Bengang Steel Plates Co., Ltd.
30 September 2017
Unit: RMB
Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current assets:|||
|Cash at bank and on hand|12,382,277,330.45|12,931,912,017.84|
|Settlement provisions|||
|Capital lent|||
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|4,591,065,268.47|2,030,681,138.03|
|Accounts receivable|593,371,229.51|623,865,427.25|
|Prepayments|597,926,580.84|493,839,659.44|
|Premium receivable|||
|Reinsurance accounts receivable|||
|Receivable deposit for reinsurance|||
|contract|||
|Interests receivable|2,873,285.16|4,208,818.85|
|Dividends receivable|||
|Other receivables|153,329,935.10|117,909,972.49|
|Redemptory financial assets for sale|||
|Inventories|10,737,088,464.68|9,782,173,936.74|
|Assets classified as held for sale|||
|Non-current assets due within one|||
|year|||
|Other current assets|266,731,866.97|513,398,815.83|
|Total current assets|29,324,663,961.18|26,497,989,786.47|
|Non-current assets:|||
|Loan and advances issued|||
|Available-for-sale financial assets|5,856,585.63|14,856,585.63|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investments|||
|Investment properties|||
|Fixed assets|19,220,677,904.84|20,688,468,637.44|
|Construction in progress|7,692,896,205.61|6,210,673,674.11|
|Construction materials|4,558,919.60|7,783,370.29|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|255,376,344.53|259,837,410.93|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred tax assets|188,345,388.90|476,101,254.04|
|Other non-current assets|||
|Total non-current assets|27,367,711,349.11|27,657,720,932.44|
|Total assets|56,692,375,310.29|54,155,710,718.91|
|Current Liabilities:|||
|Short-term loans|23,691,178,750.00|18,762,472,779.48|
|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|3,958,342,631.60|6,372,173,897.13|
|Accounts payable|4,648,449,675.39|5,680,244,661.52|
|Advance from customers|3,148,966,302.80|3,679,477,129.80|
|Financial assets sold for repurchase|||
|Handling charges and commission|||
|payable|||
|Employee benefits payable|42,905,543.60|24,063,493.70|
|Current tax liabilities|20,253,168.60|45,771,585.46|
|Interests payable|62,437,326.76|75,115,265.66|
|Dividends payable|||
|Other payables|441,012,518.96|460,009,213.78|
|Reinsurance accounts payable|||
|Provision for insurance contract|||
|Receipt from vicariously traded|||
|securities|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Receipt from vicariously underwriting|||
|securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one|||
||2,071,159,300.00|437,669,535.66|
|year|||
|Other current liabilities|||
|Total current liabilities|38,084,705,217.71|35,536,997,562.19|
|Non-current liabilities:|||
|Long-term loans|2,127,071,927.87|3,448,931,721.62|
|Bonds payable|1,498,275,260.78|1,494,825,782.32|
|Including: Preferred stock|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits payable|||
|Special accounts payable|||
|Estimated liabilities|||
|Deferred income|388,878,500.00|410,399,000.00|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|4,014,225,688.65|5,354,156,503.94|
|Total liabilities|42,098,930,906.36|40,891,154,066.13|
|Shareholders’ equity:|||
|Share capital|3,136,000,000.00|3,136,000,000.00|
|Other equity instruments|||
|Including: Preferred stock|||
|Perpetual bond|||
|Capital reserves|9,114,845,542.05|9,114,845,542.05|
|Less: treasury shares|||
|Other comprehensive income|||
|Special reserves|11,870,401.02|372,721.86|
|Surplus reserves|961,105,529.85|961,105,529.85|
|General risk reserve|||
|Undistributed profits|837,328,760.23|-496,969,242.61|
|Total equity attributable to equity holders|||
||14,061,150,233.15|12,715,354,551.15|
|of the parent company|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Non-controlling interests|532,294,170.78|549,202,101.63|
|Total shareholder’s equity|14,593,444,403.93|13,264,556,652.78|
|Total liabilities and shareholder’s equity|56,692,375,310.29|54,155,710,718.91|

 Legal Representative:Wang Shu Person in charge of accounting:Han Ge Accounting Dept. Leader:Wang Shaoyu 1. BALANCE SHEET OF THE PARENT COMPANY
Unit: RMB
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current assets:|||
|Cash at bank and on hand|11,802,294,961.74|12,402,995,087.03|
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|4,326,785,270.23|1,870,384,367.64|
|Accounts receivable|533,431,999.97|455,070,302.00|
|Prepayments|597,389,713.18|487,869,713.72|
|Interests receivable|2,873,285.16|4,208,818.85|
|Dividends receivable|||
|Other receivables|188,862,951.00|210,089,804.88|
|Inventories|9,186,877,171.69|8,308,291,029.07|
|Assets classified as held for sale|||
|Non-current assets due within one year|||
|Other current assets|237,628,505.09|431,675,085.33|
|Total current assets|26,876,143,858.06|24,170,584,208.52|
|Non-current assets:|||
|Available-for-sale financial assets|3,888,980.00|12,888,980.00|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investments|1,756,981,902.16|1,700,981,902.16|
|Investment properties|||
|Fixed assets|16,910,808,981.22|18,125,714,092.15|
|Construction in progress|7,671,941,238.07|6,196,524,880.06|
|Construction materials|4,134,133.28|4,134,139.52|
|Disposal of fixed assets|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|152,908,849.57|155,388,452.53|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred tax assets|90,940,739.88|378,696,605.02|
|Other non-current assets|||
|Total non-current assets|26,591,604,824.18|26,574,329,051.44|
|Total assets|53,467,748,682.24|50,744,913,259.96|
|Current Liabilities:|||
|Short-term loans|21,908,769,350.00|17,376,963,500.00|
|Financial liabilities at fair value|||
|through profit or loss|||
|Advance from customers|||
|Notes payable|3,372,632,631.27|5,768,523,196.16|
|Accounts payable|5,467,695,605.54|5,939,417,729.46|
|Advance from customers|3,044,873,924.58|3,671,944,099.35|
|Employee benefits payable|42,463,682.22|22,386,057.59|
|Current tax liabilities|4,185,733.81|28,902,954.65|
|Interests payable|62,238,801.13|70,109,821.13|
|Dividends payable|||
|Other payables|288,583,226.21|289,522,026.53|
|Liabilities held for sale|||
|Non-current liabilities due within one|||
||2,071,159,300.00|437,669,535.66|
|year|||
|Other current liabilities|||
|Total current liabilities|36,262,602,254.76|33,605,438,920.53|
|Non-current liabilities:|||
|Long-term loans|2,127,071,927.87|3,448,931,721.62|
|Bonds payable|1,498,275,260.78|1,494,825,782.32|
|Including: Preferred stock|||
|Perpetual bond|||
|Long-term payables|||
|Long-term employee benefits payable|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Special accounts payable|||
|Estimated liabilities|||
|Deferred income|388,878,500.00|410,399,000.00|
|Deferred tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|4,014,225,688.65|5,354,156,503.94|
|Total liabilities|40,276,827,943.41|38,959,595,424.47|
|Shareholders’ equity:|||
|Share capital|3,136,000,000.00|3,136,000,000.00|
|Other equity instruments|||
|Including: Preferred stock|||
|Perpetual bond|||
|Capital reserves|8,694,693,859.93|8,694,693,859.93|
|Less: treasury shares|||
|Other comprehensive income|||
|Special reserves|8,994,342.20|230,735.89|
|Surplus reserves|961,105,529.85|961,105,529.85|
|Undistributed profits|390,127,006.85|-1,006,712,290.18|
|Total shareholder’s equity|13,190,920,738.83|11,785,317,835.49|
|Total liabilities and shareholder’s equity|53,467,748,682.24|50,744,913,259.96|

 3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF THE CURRENT REPORTING PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|
|1. Total operating income|9,640,672,901.66|7,352,413,667.74|
|Including: Operating income|9,640,672,901.66|7,352,413,667.74|
|Interest income|||
|Premium earned|||
|Income from handling|||
|charges and commission|||
|2. Total operating cost|8,643,165,739.54|6,782,057,523.51|
|Including: Operating cost|8,007,060,516.58|6,125,972,410.63|
|Interest cost|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|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|32,838,776.98|27,088,709.48|
|Selling and distribution|||
||268,471,511.83|219,452,625.67|
|expenses|||
|General and administrative|||
||185,027,450.47|200,432,767.91|
|expenses|||
|Financial expenses|151,946,049.78|209,946,899.42|
|Asset impairment loss|-2,178,566.10|-835,889.60|
|Add: Gains from the change in fair|||
|value ("-" for loss)|||
|Income on investment ("-" for|||
|||569,498.63|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||
|Exchange Income ("-" for|||
|loss)|||
|Other Income|||
|3. Operating profit ("-" for loss)|997,507,162.12|570,925,642.86|
|Add: Non-operating income|13,070,744.52|15,234,307.48|
|Including: Gain on disposal of|||
||476,301.60|2,475,142.83|
|non-current assets|||
|Less: Non-operating expenses|3,888,870.11||
|Including: Loss on disposal of|||
||3,888,870.11||
|non-current assets|||
|4. Total profit ("-" for loss)|1,006,689,036.53|586,159,950.34|
|Less: Income tax expenses|194,797,871.77|174,795,525.68|
|5. Net Profit ("-" for loss)|811,891,164.76|411,364,424.66|
|Attributable to: Owners of parent|||
||810,662,349.27|392,077,397.20|
|company|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Non-controlling shareholders|1,228,815.49|19,287,027.46|
|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|||
|re-measuring 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|||
|re-measuring 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 resulti|||
|ng from translating the foreign currency|||
|financial statements|||
|(6) .Others|||
|Other comprehensive income|||
|attributable to non-controlling|||
|shareholders after tax|||
|7. Total comprehensive income|811,891,164.76|411,364,424.66|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Total comprehensive income|||
|attributable to owners of parent|810,662,349.27|392,077,397.20|
|company|||
|Total comprehensive income|||
|attributable to non-controlling|1,228,815.49|19,287,027.46|
|shareholders|||
|8. Earnings per share:|||
|1) Basic earnings per share|0.259|0.125|
|2) Diluted earnings per share|0.259|0.125|

 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: Wang Shu Person in charge of accounting: Han Ge Accounting Dept. Leader: Wang Shaoyu 4. INCOME STATEMENT OF THE PARENT COMPANY DURING THE CURRENT REPORTING PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|
|1. Turnover|9,431,303,159.07|7,541,752,295.18|
|Less: Operating cost|7,944,761,205.42|6,506,196,116.23|
|Taxes and surcharges|24,005,387.31|24,375,185.52|
|Selling and distribution|||
||182,143,490.01|155,519,980.97|
|expenses|||
|General and administrative|||
||173,001,531.44|185,740,284.28|
|expenses|||
|Financial expenses|136,168,153.13|195,326,877.96|
|Asset impairment loss|-2,177,456.19|-368,932.75|
|Add: Gains from the change in fair|||
|value ("-" for loss)|||
|Income on investment ("-" for|||
|||569,498.63|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||
|Other Income|||
|2. Operating profit ("-" for loss)|973,400,847.95|475,532,281.60|
|Add: Non-operating income|12,947,899.28|15,117,388.95|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Including: Gain on disposal of|||
||476,301.60|2,406,422.22|
|non-current assets|||
|Less: Non-operating expenses|3,888,870.11||
|Including: Loss on disposal of|||
||3,888,870.11||
|non-current assets|||
|3. Total profit ("-" for loss)|982,459,877.12|490,649,670.55|
|Less: Income tax expenses|187,447,328.04|170,060,434.17|
|4. Net Profit ("-" for loss)|795,012,549.08|320,589,236.38|
|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|||
|re-measuring 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|||
|re-measuring 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 resulti|||
|ng from translating the foreign currency|||
|financial statements|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|(6) .Others|||
|6. Total comprehensive income|795,012,549.08|320,589,236.38|
|7. Earnings per share:|||
|1) Basic earnings per share|||
|2) Diluted earnings per share|||

5. CONSOLIDATED STATEMENT OF INCOME STATEMENT FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT REPORTING PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|
|1. Total operating income|30,377,159,805.40|19,981,998,237.09|
|Including: Operating income|30,377,159,805.40|19,981,998,237.09|
|Interest income|||
|Premium earned|||
|Income from handling|||
|charges and commission|||
|2. Total operating cost|28,752,295,499.49|19,089,375,328.26|
|Including: Operating cost|26,697,726,482.69|17,040,154,712.67|
|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|166,595,508.05|53,421,604.24|
|Selling and distribution|||
||856,104,219.26|649,513,688.81|
|expenses|||
|General and administrative|||
||543,978,855.55|552,387,486.39|
|expenses|||
|Financial expenses|533,459,454.58|796,614,724.61|
|Asset impairment loss|-45,569,020.64|-2,716,888.46|
|Add: Gains from the change in fair|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|value ("-" for loss)|||
|Income on investment ("-" for|||
||3,294,593.14|569,498.63|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||
|Exchange Income ("-" for|||
|loss)|||
|Other Income|||
|3.Operating profit ("-" for loss)|1,628,158,899.05|893,192,407.46|
|Add: Non-operating income|34,085,233.10|39,430,977.03|
|Including: Gain on disposal of|||
||3,491,595.60|4,595,601.72|
|non-current assets|||
|Less: Non-operating expenses|8,482,290.41|105,474.99|
|Including: Loss on disposal of|||
||8,482,290.41|105,474.99|
|non-current assets|||
|4.Total profit ("-" for loss)|1,653,761,841.74|932,517,909.50|
|Less: Income tax expenses|311,902,932.93|314,857,746.97|
|5.Net Profit ("-" for loss)|1,341,858,908.81|617,660,162.53|
|Attributable to: Owners of parent|||
||1,334,298,002.84|574,615,573.52|
|company|||
|Non-controlling shareholders|7,560,905.97|43,044,589.01|
|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|||
|re-measuring 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|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|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|||
|re-measuring 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 resulti|||
|ng from translating the foreign currency|||
|financial statements|||
|(6) .Others|||
|Other comprehensive income|||
|attributable to non-controlling|||
|shareholders after tax|||
|7. Total comprehensive income|1,341,858,908.81|617,660,162.53|
|Total comprehensive income|||
|attributable to owners of parent|1,334,298,002.84|574,615,573.52|
|company|||
|Total comprehensive income|||
|attributable to non-controlling|7,560,905.97|43,044,589.01|
|shareholders|||
|8. Earnings per share:|||
|1) Basic earnings per share|0.425|0.183|
|2) Diluted earnings per share|0.425|0.183|

 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.
6. STATEMENT OF COMPREHENSIVE INCOME OF THE PARENT COMPANY FROM THE BEGGING OF THE YEAR TO THE END OF THE CURRENT REPORTING PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|1.Turnover|30,628,819,938.27|20,727,140,742.37|
|Less: Operating cost|27,427,737,279.74|18,236,082,900.44|
|Taxes and surcharges|140,788,803.31|39,015,159.45|
|Selling and distribution|||
||555,662,676.40|507,779,490.30|
|expenses|||
|General and administrative|||
||509,371,807.46|507,214,377.27|
|expenses|||
|Financial expenses|486,344,038.55|750,350,717.43|
|Asset impairment loss|-45,567,910.73|-2,249,931.61|
|Add: Gains from the change in fair|||
|value ("-" for loss)|||
|Income on investment ("-" for|||
||105,369,227.90|14,282,827.08|
|loss)|||
|Including: Income from|||
|associates and joint ventures|||
|Other Income|||
|2.Operating profit ("-" for loss)|1,659,852,471.44|703,230,856.17|
|Add: Non-operating income|33,224,981.14|38,679,929.93|
|Including: Gain on disposal of|||
||3,491,595.60|4,456,927.98|
|non-current assets|||
|Less: Non-operating expenses|8,482,290.41|105,474.99|
|Including: Loss on disposal of|||
||8,482,290.41|105,474.99|
|non-current assets|||
|3.Total profit ("-" for loss)|1,684,595,162.17|741,805,311.11|
|Less: Income tax expenses|287,755,865.14|308,151,093.24|
|4.Net Profit ("-" for loss)|1,396,839,297.03|433,654,217.87|
|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|||
|re-measuring defined benefit plan|||
|(2) .Share of other|||
|comprehensive income of investee not|||
|to be classified into profit or loss|||
|afterwards under equity method|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|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|||
|re-measuring 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 resulti|||
|ng from translating the foreign currency|||
|financial statements|||
|(6) .Others|||
|6.Total comprehensive income|1,396,839,297.03|433,654,217.87|
|7.Earnings per share:|||
|3) Basic earnings per share|||
|4) Diluted earnings per share|||

7. CONSOLIDATED STATEMENT OF CASH FLOWS FROM THE BEGGINING OF THE YEAR TO THE END OF THE CURRENT PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|
|1.Cash flow from operating activities:|||
|Cash received from sale of goods|||
||21,053,946,910.03|16,580,702,769.37|
|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|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|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|||
|financial institutions|||
|Net increase of fund for buy-back|||
|business|||
|Tax rebate received|247,722,320.84|353,037,007.15|
|Other cash received relating to|||
||93,241,794.79|84,677,742.77|
|operating activities|||
|Subtotal of cash inflow received from|||
||21,394,911,025.66|17,018,417,519.29|
|operation activities|||
|Cash paid for goods and services|23,277,409,481.43|11,511,671,889.04|
|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|||
||1,372,504,441.92|1,247,371,996.56|
|employees|||
|Cash paid for all types of taxes|443,361,163.06|273,035,353.99|
|Other cash paid relating to|||
||407,069,210.36|339,714,850.94|
|operating activities|||
|Subtotal of cash outflow received from|||
||25,500,344,296.77|13,371,794,090.53|
|operation activities|||
|Net cash flows generated from|||
||-4,105,433,271.11|3,646,623,428.76|
|operating activities|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|2. Cash flows from investing activities:|||
|Cash received from return on|||
||424,000,000.00|300,000,000.00|
|investments|||
|Cash received from distribution of|||
||3,294,593.14|569,498.63|
|dividends or profit|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||4,296,555.00|
|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|||
||427,294,593.14|304,866,053.63|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|947,149,945.24|1,016,048,866.75|
|long-term assets|||
|Cash paid for acquisition of|||
||380,000,000.00|572,000,000.00|
|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|||
||1,327,149,945.24|1,588,048,866.75|
|investing activities|||
|The net cash flow generated by|||
||-899,855,352.10|-1,283,182,813.12|
|investment activities|||
|3. Cash flows from financing activities:|||
|Proceeds from investment|||
|Including: Proceeds from|||
|investment of non-controlling|||
|shareholders of subsidiary|||
|Proceeds from borrowings|19,545,352,799.54|12,925,514,125.63|
|Cash received from bond issuance|||
|Other proceeds relating to|||
|||210,000,000.00|
|financing activities|||
|Subtotal cash inflow received from|19,545,352,799.54|13,135,514,125.63|

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|financing activities|||
|Cash repayments of borrowings|14,264,079,011.29|11,692,619,787.29|
|Cash payments for distribution of|||
||895,675,683.07|737,477,171.35|
|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|||
||15,159,754,694.36|12,430,096,958.64|
|financing activities|||
|The net cash flow generated by|||
||4,385,598,105.18|705,417,166.99|
|financing activities|||
|4. Effect of foreign exchange rate|||
||-92,924,890.05|39,845,240.81|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-712,615,408.08|3,108,703,023.44|
|equivalents|||
|Add: Cash and cash equivalents at|||
||12,273,574,488.67|4,612,782,772.98|
|the beginning of the period|||
|6. Cash and cash equivalents at the|||
||11,560,959,080.59|7,721,485,796.42|
|ending of the period|||

8. CASH FLOW STATEMENT OF THE PARENT COMPANY FROM THE BEGINNING OF THE YEAR TO THE END OF THE CURRENT PERIOD
Unit: RMB
||||
|-|-|-|
|Items|The Current Period|The Previous Period|
|1.Cash flow from operating activities:|||
|Cash received from sale of goods|||
||20,467,726,400.98|17,325,991,437.46|
|or rendering of services|||
|Tax rebate received|172,271,080.18|343,392,974.16|
|Other cash received relating to|||
||87,160,373.20|76,149,013.82|
|operating activities|||
|Subtotal of cash inflow received from|||
||20,727,157,854.36|17,745,533,425.44|
|operation activities|||
|Cash paid for goods and services|23,052,858,946.77|12,379,218,031.50|
|Cash paid to and on behalf of|||
||1,304,133,489.37|1,181,632,960.47|
|employees|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Cash paid for all types of taxes|363,002,738.78|146,872,420.32|
|Other cash paid relating to|||
||344,550,652.82|295,590,912.91|
|operating activities|||
|Subtotal of cash outflow received from|||
||25,064,545,827.74|14,003,314,325.20|
|operation activities|||
|Net cash flows generated from|||
||-4,337,387,973.38|3,742,219,100.24|
|operating activities|||
|2. Cash flows from investing activities:|||
|Cash received from return on|||
||424,000,000.00|300,000,000.00|
|investments|||
|Cash received from distribution of|||
||105,369,227.90|569,498.63|
|dividends or profit|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||4,107,574.00|
|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|||
||529,369,227.90|304,677,072.63|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|930,544,967.24|996,101,897.66|
|long-term assets|||
|Cash paid for acquisition of|||
||380,000,000.00|572,000,000.00|
|investments|||
|Net cash received from subsidiary|||
|and other operating unit|||
|Other cash paid relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,310,544,967.24|1,568,101,897.66|
|investing activities|||
|The net cash flow generated by|||
||-781,175,739.34|-1,263,424,825.03|
|investment activities|||
|3. Cash flows from financing activities:|||
|Proceeds from investment|||
|Proceeds from borrowings|18,182,352,799.54|11,862,514,125.63|
|Cash received from bond issuance|||

Bengang Steel Plates Co., Ltd. Third Quarter Report 2017
||||
|-|-|-|
|Other proceeds relating to|||
|||210,000,000.00|
|financing activities|||
|Subtotal cash inflow received from|||
||18,182,352,799.54|12,072,514,125.63|
|financing activities|||
|Cash repayments of borrowings|13,159,153,564.72|10,841,064,067.53|
|Cash payments for distribution of|||
||701,660,667.03|691,202,152.71|
|dividends, profit or interest expenses|||
|Other cash payments relating to|||
|financing activities|||
|Subtotal of cash outflows from|||
||13,860,814,231.75|11,532,266,220.24|
|financing activities|||
|The net cash flow generated by|||
||4,321,538,567.79|540,247,905.39|
|financing activities|||
|4. Effect of foreign exchange rate|||
||-92,971,403.22|39,834,229.35|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-889,996,548.15|3,058,876,409.95|
|equivalents|||
|Add: Cash and cash equivalents at|||
||11,876,536,613.66|4,489,630,951.08|
|the beginning of the period|||
|6. Cash and cash equivalents at the|||
||10,986,540,065.51|7,548,507,361.03|
|ending of the period|||

II. Audit report
Whether the third quarter report is audited
□ Yes√ No
The third quarter report is not audited.