Stock Code: 000761, 200761 Abbreviation: Bengang Bancai, Bengangban B Announcement No. : 2017-034 Summary of Semi-Annual Report 2017 of Bengang Steel Plates Co., Ltd. I. Important Notice This Semi-Annual Report Summary is taken from the full text of the Semi-Annual Report. Investors are advised to read carefully the full text of the Semi-Annual Report published on the media designated by China Securities Regulatory Commission in order to fully understand the Company’s operation results, financial position and future development plan. Objection statement of directors, supervisors and senior executives Name Office title Objection & reason Statement Other directors attending the Meeting for Semi-Annual Report deliberation except for the following Name of director absent Title for absent director Reasons for absence Attorney Non-standard auditor’s opinion □ Applicable √Not applicable Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the Board during the reporting period □Applicable √Not applicable The Company plans not to distribute cash dividend or bonus shares, and not to convert capital reserve into share capital. Plans for profit distribution on preference shares for the reporting period approved by the Board □ Applicable √ Not applicable II. Company Profile and Main Financial Index 1. Company profile Stock abbreviation Bengang Bancai, Bengangban B Stock Code 000761、 200761 Stock exchange for listing Shenzhen Stock Exchange Contact person and manner Board secretary Securities affairs Representative Name Sun Yanbin Tong Weigang Address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province Tel 024-47828860 024-47827003 Fax 024-47827004 024-47827004 Email bgbcsyb@126.com bgbc761@126.com 2. Main Accounting Data and Financial Index Retrospective adjustment to or restatement of the accounting data for prior years by the Company due to change of accounting policies and correction of accounting errors □ Yes √ No Unit: Yuan This reporting period Same period in the previous year Increase or decrease in this reporting period over the previous year Operating income 20,736,486,903.74 12,629,584,569.35 64.19% Net profit attributable to the shareholders of the listed company 523,635,653.57 182,538,176.32 186.86% Net profit after deducting non-recurring gain/loss attributable to the shareholders of listed company 508,873,423.83 164,516,206.59 209.32% Net cash flows generated by operating activities -4,047,305,684.72 2,390,777,363.52 -269.29% Basic earnings per share 0.167 0.058 187.93% Diluted earnings per share 0.167 0.058 187.93% ROE 4.04% 1.52% 2.52% At the end of this reporting period At the end of previous reporting period Increase or decrease at the end of this reporting period over the previous year Total assets 54,631,496,549.62 54,155,710,718.91 0.88% Net assets attributable to shareholders of the listed company 13,249,274,456.60 12,715,354,551.15 4.20% 3. Number of shareholders and shareholding Unit: Share Total number of common shareholders at the end of the 59,424 The total number of preferred shareholders 0 reporting period voting rights restored at the end of the reporting period (See Notes 8) Shareholding of shareholders holding more than 5% or top 10 shareholders Name of the shareholder Nature of shareholder Holding Percentage (%) Number of shares held at period-en d Changes in reporting period Restricted shares held Un-restricte d shares held Quantity of pledged or frozen shares Status Quantity Benxi Steel & Iron (Group) Co., Ltd. State-owned legal person 77.88% 2,442,316 ,069 Pledged 1,251,000,000 Frozen 45,000,000 Industrial and Commercial Bank of China Limited-South Big Data 100 Index Securities Investment Fund Others 0.31% 9,718,651 Bank of Communication Limited-Chang xin Quantification Pioneer Mixed Securities Investment Fund Others 0.29% 9,088,658 BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND Overseas legal person 0.26% 8,157,311 Zhou Jie Domestic natural person 0.17% 5,200,000 VANGUARD TOTAL INTERNATIO NAL STOCK INDEX FUND Overseas legal person 0.15% 4,606,141 Caitong Fund - ICBC - Caitong Securities Co., Ltd. Others 0.15% 4,499,967 Southwest Securities - China Everbright Bank - Southwest Securities Shuangxi Xinguang Big 1 Collection Asset Management Plan Others 0.13% 4,099,964 Haitong International Securities Company Limited-Accou nt Client Overseas legal person 0.12% 3,785,109 Chen Nengyi Domestic natural person 0.12% 3,757,336 Explanation on associated relationship among the aforesaid shareholders It is unknown to the Company whether there is any related connection or ‘Action in Concert’ as described by Rules of Information Disclosing Regarding Changing of Shareholding Status of Listed Companies existing among the above shareholders. Explanation on shareholders participating in the margin trading business(if any ) Chen Nengyi holds 3,757,336 shares of the company through investors' credit securities accounts. 4. Changes of Controlling Shareholders and Substantial Controller Change of holding shareholder □ Applicable √ Not applicable There was no change of holding shareholder in the report period. Change of substantial controller □ Applicable √ Not applicable There was no change of substantial controller in the report period. Summary of Semi-Annual Report 2017 of Bengang Steel Plates Co., Ltd. 5 5. Total preferred shareholders of the Company and shares held by top ten shareholders □ Applicable √ Not applicable There was no Preferred Shares during the reporting period. 6. Information about the corporate bonds Whether there exists any un-matured corporate bonds public issued and listed on the Stock Exchange or any matured corporate bonds which the listed company failed to pay in full at the approval date of the Semi-Annual Report Yes (1). Basic information of corporate bonds Bond name Bond short name Bond code Maturity date Bond balance ’0000 Interest rate Corporate Bond 2015 (Phase I) 15 Benxi Steel 01 112236 February 9,2018 150,000 5.17% (2) Major Financial Indicators at the End of the Reporting Period Item This reporting period Same period in the previous year Increase or decrease in this reporting period over the previous year Asset-liability ratio 74.78% 75.51% -0.73% Item This reporting period Same period in the previous year Increase or decrease in this reporting period over the previous year EBITDA Total debt ratio 3.24% 3.51% -7.69% III. Management Discussion and Analysis 1. General Whether the Company needs to comply with the disclosure requirements for special industry No In the first half year, influence by the state policies to resolve the excess capacity and clean up the production of substandard steel products, the steel market gradually tuned better. The Company adjusted production mode, strengthened economic operation, and thus the benefit improved compared to previous year. During January to June, the Company produced 4.8568 million tons of pig iron, which decreased by 0.83% compared to previous year; produced 4.9149 million tons crude steel, which increased by 2.86% compared to previous year; produced 6.3215 million tons hot-rolled plate, which increased by 15.63% compared to previous year; produced 2.8491 million tons cold-rolled plate, which increased by 53.77% compared to previous year; and produced 402,900 tons special steel, which increased by 11.7% compared to previous year. The main work done in production operation during the first half year is as followings: 1. The Company vigorously promoted new product research and development, experimental research, application, technical services, and constantly improved the ability of scientific and technological innovation. By adjusting the product structure, and carrying out special management to key varieties with high profitability, the Company constantly expanded the market share of high value-added products. 2. The Company actively expanded procurement methods, and actively reduced procurement costs through the benchmarking price comparison, variety substitution, structural adjustment, timing procurement and other measures. 3. The Company focused on coal blending to reduce cost, strengthened economic operation. In accordance with the principle of cost-effective, at the same time of ensuring the stability of production, the Company achieved lower production costs through the development of new products to optimize the coal blending structure. The Company strictly controlled non-productive expense expenditure, and significantly reduced the non-productive expense quota. 4. The Company adhered to the principle of maximizing economic benefits, innovated production organization mode. Taking the domestic and foreign advanced steel enterprises as the benchmark, the Company actively carried out key processes for tapping the mark, and effectively improved own short board, lowered the cost consumption level. Summary of Semi-Annual Report 2017 of Bengang Steel Plates Co., Ltd. 6 5. The Company strengthened environmental protection responsibility implementation, tightened environmental protection facilities operation management. The Company strengthened the source of pollution control, and focused on day-to-day supervision and inspection of water, gas, sound, slag and others, implemented closed-loop management measures. The Company pushed forward the construction of environmental protection project to ensure pollutant emission reduction targets. 2. Issues related to the financial report (1) Changes in the accounting policy, accounting estimation and measurement methods √ Applicable □ Not applicable There was no change in accounting policy, accounting estimation and measurement methods during the reporting period. (2) Illustrations of retrospective restatement due to correction of significant accounting errors in the report period □ Applicable √ Not applicable No major accounting errors within reporting period that needs retrospective restatement for the Company in the period. (3) Illustrations of changes of the consolidation scope as compared with the financial report of previous year √Applicable □ Not applicable New