本钢板Ｂ：2019年第三季度报告全文（英文版）

Bengang Steel Plates Co., Ltd.Third Quarter Report 2019

October 2019

I. Important Notice

The Board of Directors, the Supervisory Committee and the Directors, members of theSupervisory Committee and senior management of the Company guarantee that thereare no misrepresentations or misleading statements, or material omission in this report,and individually and collectively accept full responsibility for the authenticity,accuracy and integrity of the information contained in this report.All the members of the Board of Directors attended the board meeting on which thisreport was examined.Gao Lie, Chairman of the Company, Shen Qiang, the principal in charge of theaccounting, and Zhao Zhonghua, Chief of Accounting Affairs, make the pledge for theauthenticity, accuracy and integrity of the attached financial statements.

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 the current period		At the end of previous year		Increase or decrease at the end of this reporting period over the previous year
Total assets（RMB）	63,759,364,131.78		59,632,504,915.83		6.92%
Net assets attributable to shareholders of the listed company（RMB）	19,439,854,342.60		19,126,258,116.67		1.64%
	This reporting period	Increase or decrease over the same period of the previous year		From the beginning of this year to the end of this reporting period		Increase or decrease over the same period of the previous year
Operating income（RMB）	14,441,830,940.38	8.48%		38,544,426,107.52		4.87%
Net profit attributable to the shareholders of the listed company（RMB）	34,229,631.12	-49.83%		487,439,246.88		-40.93%
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB）	26,305,669.24	-49.16%		479,515,285.00		-38.26%
Net Cash flow generated by business operation（RMB）	--	--		4,055,738,221.28		-41.50%
Basic earnings per share(RMB/Share)	0.01	-50.00%		0.13		-38.10%
Diluted earnings per share(RMB/Share)	0.01	-50.00%		0.13		-38.10%
Weighted average net assets yield	0.18%	-0.18%		2.53%		-2.44%

Unit: Yuan

Items	From the beginning of the year to the end of the current period	Notes
Profit or loss from disposal of non-current assets (including the write-off part for which assets impairment provision is made)	-55,191,533.14
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 national policy and enjoyed constantly in certain quota or quantity according to a certain standard）	62,516,500.00
Profit or loss from debt restructuring	50,640.00
Other non-operating revenue and expenditure other than above items	762,123.88
Less: Impact of income tax	203,190.97
Impact of minority interests (after tax)	10,577.89
Total	7,923,961.88	--

Total number of common shareholders at the end of the reporting period		53,728		The total number of preferred shareholders whose voting rights has been restored at end of the reporting period（if any）			0
Shareholding by Top 10 shareholders
Name of the	Nature of	Proportion of	Quantity of		Amount of	Number of share pledged/frozen

shareholder	shareholder	shares held	shares	restricted shares held	State of share	Quantity
Benxi Steel & Iron (Group) Co., Ltd.	State-owned legal person	61.44%	2,381,105,094		Pledged	732,115,333
					Frozen	45,000,000
Liaoning Provincial Transportation Investment Group Co., Ltd.	State-owned legal person	4.77%	184,842,883
CCB Principal Asset Management – ICBC – CR Trust – CR Trust · Xing Sheng No. 5 Collective Fund Trust Plan	Others	4.77%	184,842,883
Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Feng Fund Feng Qing No. 229 Asset Management Plan	Others	4.77%	184,842,883
China Life AMP Fund– ICBC – China Life AMP – Hua Xin Trust Targeted Additional Shares Issuance No. 10 Asset Management Plan	Others	4.77%	184,842,883
Liang Zhongqing	Domestic natural person	0.71%	27,623,365
Liu Qiuying	Domestic natural person	0.34%	13,274,400
VANGUARD EMERGING	Overseas legal person	0.21%	8,157,311

MARKETS STOCK INDEX FUND
Chen Jinhong	Domestic natural person	0.18%	6,876,375
Yi Honglu	Domestic natural person	0.17%	6,426,080
Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholder		Number of non-restricted common shares held at the period-end			Category of shares
					Category of shares	Quantity
Benxi Steel & Iron (Group) Co., Ltd.		2,381,105,094			Common shares in RMB	2,381,105,094
Liaoning Provincial Transportation Investment Group Co., Ltd.		184,842,883			Common shares in RMB	184,842,883
CCB Principal Asset Management – ICBC – CR Trust – CR Trust · Xing Sheng No. 5 Collective Fund Trust Plan		184,842,883			Common shares in RMB	184,842,883
Bei Xin Rui Feng Fund – China Merchants Bank – Bei Xin Rui Feng Fund Feng Qing No. 229 Asset Management Plan		184,842,883			Common shares in RMB	184,842,883
China Life AMP Fund– ICBC – China Life AMP – Hua Xin Trust Targeted Additional Shares Issuance No. 10 Asset Management Plan		184,842,883			Common shares in RMB	184,842,883
Liang Zhongqing		27,623,365			Common shares in RMB	27,623,365
Liu Qiuying		13,274,400			Common shares in RMB	13,274,400
VANGUARD EMERGING MARKETS STOCK INDEX FUND		8,157,311			Foreign shares placed in domestic exchange	8,157,311
Chen Jinhong		6,876,375			Common shares in RMB	6,876,375
Yi Honglu		6,426,080			Common shares in	6,426,080

		RMB
Related-parties or acting-in-concert parties among the above-mentioned shareholders	It is unknown to the Company whether there is any related parties or action-in-concert parties as defined in “Measures for the Administration of the Takeover of Listed Companies”among the above-mentioned shareholders.
Shareholders among the top 10 participating in securities margin trading (if any)	Benxi Steel & Iron (Group) Co., Ltd. holds 2,142,105,094 shares of the company through an ordinary securities account, and holds 239,000,000 shares through the investor's credit securities account, therefore, it holds a total of 2,381,105,094 shares. Liang Zhongqing holds 500 shares of the company through general securities account and 27,622,865 shares of the company through an investor's credit securities account. Yi Honglu holds 6,426,080 shares of the company through an investor's credit securities account.

III. Important EventsI. Major Changes in Financial Data and Financial Index and Reasons

√ Applicable □ Not applicable

? Items and reasons for the changes of more than 30% compared with the beginning of the year in theconsolidated statement

1. Statement of Financial Position	Increase / Decrease	Reasons
Construction in progress	113%	Due to the increase of construction in progress that did not meet the conditions of transferring to fixed assets at the end of the period
Accounts payables	50%	Due to the increase of accounts payables in the current period
Tax payable	-89%	Due to the decrease of VAT payable at the end of this period
Non-current liabilities due within one year	552%	Due to the conversion of long-term borrowings into non-current liabilities due within one year
Long-term payables	446%	Due to the increase in equipment leased at the end of the period.
Special reserves	2913%	Due to the decrease of payment of safety production fee

2. Statement of comprehensive income	Increase / Decrease	Reasons
Research and development expenses	606%	Due to the increase of research and development expenses in current period
Financial expenses	-69%	Due to the decrease of exchange loss
Investment income	-99%	Due to the decrease in financial products purchased during the period.
Asset disposal gains	170%	Due to the increase of disposal income on fixed assets
Non-operating income	323%	Due to the increase of gains arose from fixed assets scrapping
Non-operating expenses	3164%	Due to the increase of losses arose from fixed assets scrapping

Income tax expenses	84%	Due to the increase of deferred income tax
Profit or loss of non-controlling shareholders	-114%	Due to the decrease of profit of holding subsidiaries
3. Statement of cash flows	Increase / Decrease	Reasons
Other cash received relating to operating activities	115%	Due to the increase of other cash received relating to operating activities
Cash paid for all types of taxes	47%	Due to the increase of taxes paid during the current period
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	-33%	Due to the decrease of payment of acquisition of fixed assets, intangible assets during the current period
Cash received from borrowings	-65%	Due to the decrease of reception of borrowings
Cash repayments of borrowings	-77%	Due to the decrease of cash on repayment of borrowings

Overview of important matters

Date of disclosure

Interim report disclosure website query index

The company signed the "Asset Transfer Agreement" with Benxi Steel (Group) Co., Ltd. and Benxi Beiying Iron and Steel (Group) Co., Ltd., and acquired the equipment and equipment assets related to 2300mm hot rolling mill production line held by Benxi Iron and Steel Co., Ltd. and the equipment and equipment assets related to the 1780mm hot rolling mill production line held by Benxi Beiying Company. The company completed the purchase of the target assets on September 3, 2019.	August 15, 2019	www.cninfo.com.cn Announcement No.: 2019-051
	September 03, 2019	www.cninfo.com.cn Announcement No.: 2019-058

Commitment reasons	Commitment party	Type of commitment	Contents	Commitment time	Commitment period	Performance
Commitment to share reform
Commitment made in the acquisition report or the equity change report
Commitment made during asset restructuring
Commitment made during initial public offering or refinancing	Company directors, senior management	Other commitments	According to the relevant provisions of the China Securities Regulatory Commission, the following	January 26, 2016	December 9, 2019	Under normal fulfillment

			fill the rewards.
Equity incentive commitment
Other commitments to the company's minority shareholders
Commitment to fulfill on time	Yes

IV. Financial Report

I. Financial Statements

1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Prepared by: Bengang Steel Plates Co., Ltd.

Unit: Yuan

Items	Sep 30th , 2019	Dec 31st, 2018
Current assets:
Cash at bank and on hand	19,984,210,581.72	16,567,471,755.77
Settlement provisions
Capital lent
Financial assets held for trading
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable	2,647,287,059.10	3,580,145,843.38
Accounts receivable	592,287,178.61	639,482,481.45
Receivables financing
Prepayments	1,284,152,966.11	1,321,537,514.78
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables:	208,492,688.07	202,763,964.98
Including: Interest receivables	12,642,974.12	11,608,705.43
Dividend receivables
Redemptory financial assets for sale
Inventories	9,648,655,795.97	10,677,747,112.40
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets	330,615,190.73	292,119,771.13
Total current assets	34,695,701,460.31	33,281,268,443.89
Non-current assets:

Loan and advances issued
Debt investments
Available-for-sale financial assets		1,041,824,829.00
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments	2,481,589.04	2,455,681.55
Other equity instrument investments	1,041,824,829.00
Other non-current financial assets
Investment properties
Fixed assets	25,722,058,707.79	23,924,504,539.97
Construction in progress	1,785,959,831.48	836,594,457.82
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets	273,141,866.04	278,062,441.04
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets	174,168,423.31	191,452,547.21
Other non-current assets	64,027,424.81	76,341,975.35
Total non-current assets	29,063,662,671.47	26,351,236,471.94
Total assets	63,759,364,131.78	59,632,504,915.83
Current Liabilities:
Short-term loans	12,535,851,000.00	11,938,490,375.85
Loan from central bank
Absorbed deposit and interbank deposit
Financial liabilities held for trading
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable	10,721,947,779.82	10,013,192,014.02
Accounts payable	8,297,245,042.10	5,522,042,811.65
Advance from customers	3,716,963,704.35	3,331,854,098.42

Contract Liabilities
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Employee benefits payable	50,531,098.73	51,466,231.72
Current tax liabilities	55,344,641.91	515,752,369.68
Other payables	850,901,676.15	862,511,178.96
Including: Interest payables	8,014,283.24	9,658,681.99
Dividend payables
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year	2,288,751,448.16	350,965,576.32
Other current liabilities
Total current liabilities	38,517,536,391.22	32,586,274,656.62
Non-current liabilities:
Provision for insurance contract
Long-term loans	4,972,547,175.82	7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables	74,746,302.05	13,686,705.92
Long-term employee benefits payables
Estimated liabilities
Deferred income	230,018,022.97	289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities	5,277,311,500.84	7,386,825,803.05
Total liabilities	43,794,847,892.06	39,973,100,459.67
Shareholders’ equity:
Share capital	3,875,371,532.00	3,875,371,532.00

Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves	12,343,209,847.29	12,343,209,847.29
Less: treasury shares
Other comprehensive income
Special reserves	20,609,493.36	683,937.71
Surplus reserves	961,105,529.85	961,105,529.85
General risk reserves
Undistributed profits	2,239,557,940.10	1,945,887,269.82
Total equity attributable to equity holders of the parent company	19,439,854,342.60	19,126,258,116.67
Non-controlling interests	524,661,897.12	533,146,339.49
Total shareholder’s equity	19,964,516,239.72	19,659,404,456.16
Total liabilities and shareholder’s equity	63,759,364,131.78	59,632,504,915.83

Items	Sep 30th, 2019	Dec 31st, 2018
Current assets:
Cash at bank and on hand	18,280,266,796.50	15,536,305,375.00
Financial assets held for trading
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable	2,570,575,588.41	3,356,020,598.89
Accounts receivable	377,395,508.27	409,553,059.27
Receivables financing
Prepayments	1,262,333,417.87	1,309,194,738.97
Other receivables	221,109,216.42	235,037,391.46
Including: Interest receivables	11,054,927.27	9,815,280.04
Dividend receivables
Inventories	8,187,028,960.76	8,681,362,081.72

Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets	265,082,350.56	193,989,096.20
Total current assets	31,163,791,838.79	29,721,462,341.51
Non-current assets:
Debt investments
Available-for-sale financial assets		1,041,624,829.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investments	2,016,281,902.16	2,016,281,902.16
Other equity instrument investments	1,041,624,829.00
Other non-current financial assets
Investment properties
Fixed assets	24,088,077,920.91	22,035,187,328.57
Construction in progress	1,770,671,281.92	825,553,510.15
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets	146,296,575.00	148,776,177.96
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets	80,389,854.83	96,220,003.00
Other non-current assets	64,027,424.81	76,341,975.35
Total non-current assets	29,207,369,788.63	26,239,985,726.19
Total assets	60,371,161,627.42	55,961,448,067.70
Current Liabilities:
Short-term loans	11,235,851,000.00	10,624,270,375.85
Financial assets held for trading
Financial liabilities at fair value through profit or loss
Derivative financial liabilities

Notes payable	8,554,883,676.61	9,213,748,427.22
Accounts payable	10,401,360,265.58	5,940,816,426.48
Advance from customers	3,570,678,789.25	3,189,143,565.45
Contract liabilities
Employee benefits payable	50,140,067.57	49,378,095.47
Current tax liabilities	5,563,337.07	507,003,883.57
Other payables	522,902,727.37	538,051,513.13
Including: Interest payables	6,247,124.51	7,341,833.33
Dividend payables
Liabilities held for sale
Non-current liabilities due within one year	2,288,751,448.16	350,965,576.32
Other current liabilities
Total current liabilities	36,630,131,311.61	30,413,377,863.49
Non-current liabilities:
Long-term loans	4,972,547,175.82	7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables	74,746,302.05	13,686,705.92
Long-term employee benefits payable
Estimated liabilities
Deferred incomes	230,018,022.97	289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities	5,277,311,500.84	7,386,825,803.05
Total liabilities	41,907,442,812.45	37,800,203,666.54
Shareholders’ equity:
Share capital	3,875,371,532.00	3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves	11,923,058,165.17	11,923,058,165.17

Less: treasury shares
Other comprehensive income
Special reserves	16,323,073.17	525,218.48
Surplus reserves	961,105,529.85	961,105,529.85
Undistributed profits	1,687,860,514.78	1,401,183,955.66
Total shareholder’s equity	18,463,718,814.97	18,161,244,401.16
Total liabilities and shareholder’s equity	60,371,161,627.42	55,961,448,067.70

Items	The Current Period	The Previous Period
1. Total operating income	14,441,830,940.38	13,313,390,671.44
Including: Operating income	14,441,830,940.38	13,313,390,671.44
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost	14,421,363,860.63	13,269,371,473.96
Including: Operating cost	13,739,273,641.14	11,807,011,528.70
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	60,775,436.14	65,070,725.45
Selling and distribution expenses	257,155,173.90	277,192,418.87
General and administrative expenses	219,140,981.53	194,084,503.86
Research and development expenses	7,306,019.67	744,560.38
Financial expenses	137,712,608.25	925,267,736.70

Including: interest expenses	136,052,012.01	341,799,842.63
Interest incomes	89,695,933.07	47,196,277.02
Add: Other incomes	20,821,500.00	22,139,558.33
Income on investment ("-" for loss)
Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortised cost ("-" for loss)
Exchange Income ("-" for loss)
Hedging income from net exposure (“-" for loss)
Gains from the change in fair value (“-" for loss)
Expected credit losses (“-" for loss)	2,093,121.45
Asset impairment losses (“-" for loss)		6,821,520.16
Assets disposal gains（“-” for loss）	579,216.73	284,086.70
3. Operating profit ("-" for loss)	43,960,917.93	73,264,362.67
Add: Non-operating income	1,506,324.18	160,456.93
Less: Non-operating expenses	6,120,953.63	581,084.33
4. Total profit ("-" for loss)	39,346,288.48	72,843,735.27
Less: Income tax expenses	4,904,499.90	5,182,120.12
5. Net Profit ("-" for loss)	34,441,788.58	67,661,615.15
(1) Classification by continuing operating
1 Net profit from continuing operation	34,441,788.58	67,661,615.15
2 Net profit from discontinued operation
(2) Classification by ownership
1 Net profit attributable to the owners of parent company	34,229,631.12	68,230,224.01
2 Net profit attributable to non-controlling shareholders	212,157.46	-568,608.86
6. Other comprehensive income after tax
Other comprehensive income attributable to owners of parent company after tax

1) Other comprehensive income items that will not be reclassified into gains/losses
(1) . Re-measurement of defined benefit plans of changes in net debt or net assets
(2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss
(3). Changes of fair value of other equity instrument investments
(4). Changes in the fair value of the company's own credit risk
(5). Others
2) Other comprehensive income that will be reclassified into profit or loss
(1) . Other comprehensive income under the equity method can be reclassified into profit or loss
(2). Gains and losses from fair value changes of other debt investments
(3). Gains and losses from fair value changes of available-for-sale financial assets
(4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income
(5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments
(6). Credit impairment losses of other debt investments
(7). Effective portion of gains or losses from cash flow hedging
(8). Translation differences in foreign currency financial statements
(9). Others
Other comprehensive income attributable to non-controlling shareholders after tax
7. Total comprehensive income	34,441,788.58	67,661,615.15

Total comprehensive income attributable to owners of parent company	34,229,631.12	68,230,224.01
Total comprehensive income attributable to non-controlling shareholders	212,157.46	-568,608.86
8. Earnings per share:
1) Basic earnings per share	0.01	0.02
2) Diluted earnings per share	0.01	0.02

Items	The Current Period	The Previous Period
1. Total operating income	14,566,987,831.66	12,985,694,384.88
Less: Operating cost	14,024,765,556.43	11,617,944,541.11
Taxes and surcharges	49,468,259.31	57,126,440.52
Selling and distribution expenses	147,799,392.26	175,224,699.33
General and administrative expenses	205,034,439.76	181,799,889.96
Research and development expenses	7,306,019.67	744,560.38
Financial expenses	127,265,933.34	912,638,828.57
Including: interest expenses	120,934,881.27	326,523,217.57
Interest incomes	84,996,191.09	45,650,825.86
Add: Other incomes	20,821,500.00	22,139,558.33
Income on investment ("-" for loss)	27,594,915.42	3,493,150.68
Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortised cost ("-" for loss)
Hedging income from net exposure (“-" for loss)
Gains from the change in fair value (“-" for loss)
Expected credit losses (“-" for loss)	1,245,121.45

Asset impairment losses (“-" for loss)		6,821,520.16
Assets disposal gains（“-” for loss）	579,216.73	284,086.70
2. Operating profit ("-" for loss)	55,588,984.49	69,460,590.20
Add: Non-operating income	1,141,958.73	125,720.44
Less: Non-operating expenses	6,116,261.39	575,548.65
3. Total profit ("-" for loss)	50,614,681.83	69,010,761.99
Less: Income tax expenses	521,085.42	1,705,380.04
4. Net Profit ("-" for loss)	50,093,596.41	67,305,381.95
(1) Net profit from continuing operation ("-" for loss)	50,093,596.41	67,305,381.95
(2) Net profit from discontinued operation ("-" for loss)
5. Other comprehensive income after tax
1) Other comprehensive income items that will not be reclassified into gains/losses
(1) . Re-measurement of defined benefit plans of changes in net debt or net assets
(2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss
(3). Changes of fair value of other equity instrument investments
(4). Changes in the fair value of the company's own credit risk
(5). Others
2) Other comprehensive income that will be reclassified into profit or loss
(1) . Other comprehensive income under the equity method can be reclassified into profit or loss
(2). Gains and losses from fair value changes of other debt investments
(3). Gains and losses from fair value changes of available-for-sale financial assets
(4). Gains and losses resulting from reclassification of financial assets

recognised in other comprehensive income
(5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments
(6). Credit impairment losses of other debt investments
(7). Effective portion of gains or losses from cash flow hedging
(8). Translation differences in foreign currency financial statements
(9). Others
6. Total comprehensive income	50,093,596.41	67,305,381.95
7. Earnings per share:
1) Basic earnings per share
2) Diluted earnings per share

Items	The Current Period	The Previous Period
1. Total operating income	38,544,426,107.52	36,754,638,048.58
Including: Operating income	38,544,426,107.52	36,754,638,048.58
Interest income
Premium earned
Income from handling charges and commission
2. Total operating cost	38,043,189,142.86	36,008,275,762.90
Including: Operating cost	35,806,886,370.79	32,611,218,949.68
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	174,900,799.11	218,378,101.09
Selling and distribution expenses	831,600,373.04	791,230,427.82
General and administrative expenses	665,908,793.30	655,926,928.42
Research and development expenses	22,714,491.95	3,215,201.91
Financial expenses	541,178,314.67	1,728,306,153.98
Including: interest expenses	722,542,274.70	916,801,457.83
Interest incomes	216,779,712.65	108,801,680.36
Add: Other incomes	62,516,500.00	63,413,797.03
Income on investment ("-" for loss)	25,907.49	3,493,150.68
Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortised cost ("-" for loss)
Exchange Income ("-" for loss)
Hedging income from net exposure (“-" for loss)
Gains from the change in fair value (“-" for loss)
Expected credit losses (“-" for loss)	5,844,635.28
Asset impairment losses (“-" for loss)		27,739,483.80
Assets disposal gains（“-” for loss）	2,997,921.07	1,109,667.33
6. Operating profit ("-" for loss)	572,621,928.50	842,118,384.52
Add: Non-operating income	9,716,506.42	2,298,854.73
Less: Non-operating expenses	64,095,275.68	1,963,486.59
7. Total profit ("-" for loss)	518,243,159.24	842,453,752.66
Less: Income tax expenses	30,866,681.63	16,818,346.16
8. Net Profit ("-" for loss)	487,376,477.61	825,635,406.50
(3) Classification by continuing operating
1 Net profit from continuing operation	487,376,477.61	825,635,406.50
2 Net profit from discontinued

operation
(4) Classification by ownership
1 Net profit attributable to the owners of parent company	487,439,246.88	825,182,211.60
2 Net profit attributable to non-controlling shareholders	-62,769.27	453,194.90
6. Other comprehensive income after tax
Other comprehensive income attributable to owners of parent company after tax
1) Other comprehensive income items that will not be reclassified into gains/losses
(1) . Re-measurement of defined benefit plans of changes in net debt or net assets
(2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss
(3). Changes of fair value of other equity instrument investments
(4). Changes in the fair value of the company's own credit risk
(5). Others
2) Other comprehensive income that will be reclassified into profit or loss
(1) . Other comprehensive income under the equity method can be reclassified into profit or loss
(2). Gains and losses from fair value changes of other debt investments
(3). Gains and losses from fair value changes of available-for-sale financial assets
(4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income
(5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments
(6). Credit impairment losses of

other debt investments
(7). Effective portion of gains or losses from cash flow hedging
(8). Translation differences in foreign currency financial statements
(9). Others
Other comprehensive income attributable to non-controlling shareholders after tax
7. Total comprehensive income	487,376,477.61	825,635,406.50
Total comprehensive income attributable to owners of parent company	487,439,246.88	825,182,211.60
Total comprehensive income attributable to non-controlling shareholders	-62,769.27	453,194.90
8. Earnings per share:
1) Basic earnings per share	0.13	0.21
2) Diluted earnings per share	0.13	0.21

Items	The Current Period	The Previous Period
1. Total operating income	38,014,203,689.59	36,668,559,494.02
Less: Operating cost	35,782,055,553.61	33,019,136,503.31
Taxes and surcharges	133,935,663.72	192,669,833.48
Selling and distribution expenses	482,893,940.32	440,779,566.79
General and administrative expenses	624,372,438.11	619,992,907.29
Research and development expenses	22,714,491.95	3,215,201.91
Financial expenses	515,337,847.93	1,687,162,319.17
Including: interest expenses	679,030,224.93	870,205,608.54
Interest incomes	199,185,818.03	103,955,252.77
Add: Other incomes	62,516,500.00	63,413,797.03
Income on investment ("-" for loss)	27,594,915.42	3,493,150.68

Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortised cost ("-" for loss)
Hedging income from net exposure (“-" for loss)
Gains from the change in fair value (“-" for loss)
Expected credit losses (“-" for loss)	4,996,635.28
Asset impairment losses (“-" for loss)		27,739,483.80
Assets disposal gains（“-” for loss）	3,044,923.32	1,109,667.33
2. Operating profit ("-" for loss)	551,046,727.97	801,359,260.91
Add: Non-operating income	9,279,999.48	1,840,469.10
Less: Non-operating expenses	64,051,443.56	1,957,950.91
3. Total profit ("-" for loss)	496,275,283.89	801,241,779.10
Less: Income tax expenses	15,830,148.17	7,384,717.21
4. Net Profit ("-" for loss)	480,445,135.72	793,857,061.89
(1) Net profit from continuing operation ("-" for loss)	480,445,135.72	793,857,061.89
(2) Net profit from discontinued operation ("-" for loss)
5. Other comprehensive income after tax
1) Other comprehensive income items that will not be reclassified into gains/losses
(1) . Re-measurement of defined benefit plans of changes in net debt or net assets
(2) . Other comprehensive income under the equity method cannot be reclassified into profit or loss
(3). Changes of fair value of other equity instrument investments
(4). Changes in the fair value of the company's own credit risk
(5). Others
2) Other comprehensive income that will be reclassified into profit or loss

(1) . Other comprehensive income under the equity method can be reclassified into profit or loss
(2). Gains and losses from fair value changes of other debt investments
(3). Gains and losses from fair value changes of available-for-sale financial assets
(4). Gains and losses resulting from reclassification of financial assets recognised in other comprehensive income
(5). Gains and losses from reclassification of held-to-maturity investments to available-for-sale investments
(6). Credit impairment losses of other debt investments
(7). Effective portion of gains or losses from cash flow hedging
(8). Translation differences in foreign currency financial statements
(9). Others
6. Total comprehensive income	480,445,135.72	793,857,061.89
7. Earnings per share:
1) Basic earnings per share
2) Diluted earnings per share

Items	The Current Period	The Previous Period
1. Cash flow from operating activities:
Cash received from sale of goods or rendering of services	26,790,594,559.41	26,188,229,365.29
Net increase of customers’ deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other

financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
Net increase of Financial assets at fair value through profit or loss
Cash from receiving interest, handling charge and commission
Net increase of loans from other financial institutions
Net increase of fund for buy-back business
Tax rebate received	330,537,134.71	284,799,886.80
Other cash received relating to operating activities	179,458,663.12	83,617,244.68
Subtotal of cash inflow received from operation activities	27,300,590,357.24	26,556,646,496.77
Cash paid for goods and services	20,530,964,210.54	17,207,337,978.80
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 employees	1,450,655,474.24	1,438,947,941.23
Cash paid for all types of taxes	911,658,861.03	618,124,974.18
Other cash paid relating to operating activities	351,573,590.15	358,768,202.58
Subtotal of cash outflow received from operation activities	23,244,852,135.96	19,623,179,096.79
Net cash flows generated from operating	4,055,738,221.28	6,933,467,399.98

activities
2. Cash flows from investing activities:
Cash received from return on investments		500,000,000.00
Cash received from distribution of dividends or profit		3,493,150.68
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 investing activities		503,493,150.68
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	843,532,197.66	1,261,912,086.54
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 investing activities	843,532,197.66	1,261,912,086.54
The net cash flow generated by investment activities	-843,532,197.66	-758,418,935.86
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	7,482,429,000.00	21,592,058,293.24
Other proceeds relating to financing activities
Subtotal cash inflow received from financing activities	7,482,429,000.00	25,557,858,281.43
Cash repayments of borrowings	6,938,475,606.71	29,751,998,311.55

Cash payments for distribution of dividends, profit or interest expenses	1,194,142,072.60	1,220,039,424.07
Including: Cash paid to non-controlling shareholders as dividend and profit by subsidiaries
Other cash payments relating to financing activities
Subtotal of cash outflows from financing activities	8,132,617,679.31	30,972,037,735.62
The net cash flow generated by financing activities	-650,188,679.31	-5,414,179,454.19
4. Effect of foreign exchange rate changes on cash and cash equivalents	57,000,333.44	173,516,701.33
5. Net increase in cash and cash equivalents	2,619,017,677.75	934,385,711.26
Add: Cash and cash equivalents at the beginning of the period	11,752,548,621.97	12,317,576,778.93
6. Cash and cash equivalents at the ending of the period	14,371,566,299.72	13,251,962,490.19

Items	The Current Period	The Previous Period
1.Cash flow from operating activities:
Cash received from sale of goods or rendering of services	25,300,199,068.22	25,652,120,540.51
Tax rebate received	284,437,850.97	119,119,395.04
Other cash received relating to operating activities	174,941,066.19	80,682,696.51
Subtotal of cash inflow received from operation activities	25,759,577,985.38	25,851,922,632.06
Cash paid for goods and services	18,900,585,331.92	17,009,484,822.48
Cash paid to and on behalf of employees	1,371,069,525.86	1,372,731,925.30
Cash paid for all types of taxes	789,815,447.75	528,120,047.39
Other cash paid relating to operating activities	310,224,763.98	322,705,026.46

Subtotal of cash outflow received from operation activities	21,371,695,069.51	19,233,041,821.63
Net cash flows generated from operating activities	4,387,882,915.87	6,618,880,810.43
2. Cash flows from investing activities:
Cash received from return on investments		500,000,000.00
Cash received from distribution of dividends or profit		3,493,150.68
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 investing activities		503,493,150.68
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	836,697,138.22	1,241,365,059.32
Cash paid for acquisition of investments		259,300,000.00
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities	836,697,138.22	1,500,665,059.32
The net cash flow generated by investment activities	-836,697,138.22	-997,171,908.64
3. Cash flows from financing activities:
Proceeds from investment		3,965,799,988.19
Proceeds from borrowings	6,282,429,000.00	20,515,395,400.00
Other proceeds relating to financing activities
Subtotal cash inflow received from financing activities	6,282,429,000.00	24,481,195,388.19
Cash repayments of borrowings	5,438,545,606.71	28,587,442,043.95

Cash payments for distribution of dividends, profit or interest expenses	1,112,682,499.61	1,176,598,972.79
Other cash payments relating to financing activities
Subtotal of cash outflows from financing activities	6,551,228,106.32	29,764,041,016.74
The net cash flow generated by financing activities	-268,799,106.32	-5,282,845,628.55
4. Effect of foreign exchange rate changes on cash and cash equivalents	56,922,645.03	173,504,704.68
5. Net increase in cash and cash equivalents	3,339,309,316.36	512,367,977.92
Add: Cash and cash equivalents at the beginning of the period	10,807,824,843.20	12,152,285,550.21
6. Cash and cash equivalents at the ending of the period	14,147,134,159.56	12,664,653,528.13

II. Adjustments of Financial Statements

1. Adjustments of beginning balance due to the first-time implementation of the newfinancial instruments guidelines, new revenue standards, new lease standards

√ Applicable □ Not applicable

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unit: yuan

Items	Dec 31st 2018	Jan 1st 2019	Adjustment amount
Current assets:
Cash at bank and on hand	16,567,471,755.77	16,567,471,755.77
Settlement provisions
Capital lent
Financial assets held for trading
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable	3,580,145,843.38	3,580,145,843.38
Accounts receivable	639,482,481.45	639,482,481.45
Receivables financing
Prepayments	1,321,537,514.78	1,321,537,514.78
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables:	202,763,964.98	202,763,964.98
Including: Interest receivables	11,608,705.43	11,608,705.43
Dividend receivables
Redemptory financial assets for sale
Inventories	10,677,747,112.40	10,677,747,112.40
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets	292,119,771.13	292,119,771.13

Total current assets	33,281,268,443.89	33,281,268,443.89
Non-current assets:
Loan and advances issued
Debt investments
Available-for-sale financial assets	1,041,824,829.00		-1,041,824,829.00
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments	2,455,681.55	2,455,681.55
Other equity instrument investments		1,041,824,829.00	1,041,824,829.00
Other non-current financial assets
Investment properties
Fixed assets	23,924,504,539.97	23,924,504,539.97
Construction in progress	836,594,457.82	836,594,457.82
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets	278,062,441.04	278,062,441.04
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets	191,452,547.21	191,452,547.21
Other non-current assets	76,341,975.35	76,341,975.35
Total non-current assets	26,351,236,471.94	26,351,236,471.94
Total assets	59,632,504,915.83	59,632,504,915.83
Current Liabilities:
Short-term loans	11,938,490,375.85	11,938,490,375.85
Loan from central bank
Absorbed deposit and interbank deposit
Financial liabilities held for trading
Financial liabilities at fair value through profit or loss

Derivative financial liabilities
Note payables	10,013,192,014.02	10,013,192,014.02
Account payables	5,522,042,811.65	5,522,042,811.65
Advance from customers	3,331,854,098.42	3,331,854,098.42
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Employee benefits payable	51,466,231.72	51,466,231.72
Current tax liabilities	515,752,369.68	515,752,369.68
Other payables	862,511,178.96	862,511,178.96
Including: Interest payables	9,658,681.99	9,658,681.99
Dividend payables
Handling charges and commission payable
Reinsurance accounts payable
Contract liabilities
Liabilities held for sale
Non-current liabilities due within one year	350,965,576.32	350,965,576.32
Other current liabilities
Total current liabilities	32,586,274,656.62	32,586,274,656.62
Non-current liabilities:
Provision for insurance contract
Long-term loans	7,083,640,094.16	7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables	13,686,705.92	13,686,705.92
Long-term employee benefits payables
Estimated liabilities

Deferred income	289,499,002.97	289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities	7,386,825,803.05	7,386,825,803.05
Total liabilities	39,973,100,459.67	39,973,100,459.67
Shareholders’ equity:
Share capital	3,875,371,532.00	3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves	12,343,209,847.29	12,343,209,847.29
Less: treasury shares
Other comprehensive income
Special reserves	683,937.71	683,937.71
Surplus reserves	961,105,529.85	961,105,529.85
General risk reserves
Undistributed profits	1,945,887,269.82	1,945,887,269.82
Total equity attributable to equity holders of the parent company	19,126,258,116.67	19,126,258,116.67
Non-controlling interests	533,146,339.49	533,146,339.49
Total shareholder’s equity	19,659,404,456.16	19,659,404,456.16
Total liabilities and shareholder’s equity	59,632,504,915.83	59,632,504,915.83

Items	Dec 31st 2018	Jan 1st 2019	Adjustment amount
Current assets:
Cash at bank and on hand	15,536,305,375.00	15,536,305,375.00
Financial assets held for trading
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable	3,356,020,598.89	3,356,020,598.89
Accounts receivable	409,553,059.27	409,553,059.27

Receivables financing
Prepayments	1,309,194,738.97	1,309,194,738.97
Other receivables	235,037,391.46	235,037,391.46
Including: Interest receivables	9,815,280.04	9,815,280.04
Dividend receivables
Inventories	8,681,362,081.72	8,681,362,081.72
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets	193,989,096.20	193,989,096.20
Total current assets	29,721,462,341.51	29,721,462,341.51
Non-current assets:
Debt investments
Available-for-sale financial assets	1,041,624,829.00		-1,041,624,829.00
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investments	2,016,281,902.16	2,016,281,902.16
Other equity instrument investments		1,041,624,829.00	1,041,624,829.00
Other non-current financial assets
Investment properties
Fixed assets	22,035,187,328.57	22,035,187,328.57
Construction in progress	825,553,510.15	825,553,510.15
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets	148,776,177.96	148,776,177.96
Development expenditure
Goodwill
Long-term deferred expenses
Deferred tax assets	96,220,003.00	96,220,003.00
Other non-current assets	76,341,975.35	76,341,975.35
Total non-current assets	26,239,985,726.19	26,239,985,726.19
Total assets	55,961,448,067.70	55,961,448,067.70

Current Liabilities:
Short-term loans	10,624,270,375.85	10,624,270,375.85
Financial assets held for trading
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable	9,213,748,427.22	9,213,748,427.22
Accounts payable	5,940,816,426.48	5,940,816,426.48
Advance from customers	3,189,143,565.45	3,189,143,565.45
Contract liabilities
Employee benefits payable	49,378,095.47	49,378,095.47
Current tax liabilities	507,003,883.57	507,003,883.57
Other payables	538,051,513.13	538,051,513.13
Including: Interest payables	7,341,833.33	7,341,833.33
Dividend payables
Liabilities held for sale
Non-current liabilities due within one year	350,965,576.32	350,965,576.32
Other current liabilities
Total current liabilities	30,413,377,863.49	30,413,377,863.49
Non-current liabilities:
Long-term loans	7,083,640,094.16	7,083,640,094.16
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities
Long-term payables	13,686,705.92	13,686,705.92
Long-term employee benefits payable
Estimated liabilities
Deferred incomes	289,499,002.97	289,499,002.97
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities	7,386,825,803.05	7,386,825,803.05
Total liabilities	37,800,203,666.54	37,800,203,666.54
Shareholders’ equity:

Share capital	3,875,371,532.00	3,875,371,532.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves	11,923,058,165.17	11,923,058,165.17
Less: treasury shares
Other comprehensive income
Special reserves	525,218.48	525,218.48
Surplus reserves	961,105,529.85	961,105,529.85
Undistributed profits	1,401,183,955.66	1,401,183,955.66
Total shareholder’s equity	18,161,244,401.16	18,161,244,401.16
Total liabilities and shareholder’s equity	55,961,448,067.70	55,961,448,067.70