Bengang Steel Plates Co. Ltd. Interim Report 2026

Bengang Steel Plates Co. Ltd.Interim Report 2026

【August 2026】

1Bengang Steel Plates Co. Ltd. Interim Report 2026

Ⅰ. Important Notice Table of Contents and Definitions

The Board of Directors the Supervisory Board and all Directors Supervisors and Senior

Management of the Company ensure the authenticity accuracy and completeness of this annual

report and confirm that there are no false records misleading statements or material omissions.They assume individual and joint legal responsibility for the report.Wang Zhanwei the person in charge of the company Liu Tiecheng the person in charge of

accounting work and E Jianan the person in charge of the accounting organization (accounting

officer) hereby confirm that the financial report in this annual report is true accurate and complete.All directors have attended the board meeting for reviewing this report.This report involves forward-looking statements such as future plans which do not constitute a

substantial commitment of the company to investors. Investors are advised to pay attention to

investment risks. This report is prepared in Chinese and English respectively. In the event of

discrepancies in the interpretation of Chinese and foreign texts the Chinese version shall prevail.The Company has described the existing risks and countermeasures in detail in this report please

refer to the content of Section 3-10 "Risks Faced by the Company and Countermeasures". "China

Securities Journal" "Securities Times" "Hong Kong Commercial Daily" and Juchao Information

Network (www.cninfo.com.cn) are selected as the company's information disclosure media. All

information of the company is subject to the information published in the above-mentioned

designated media. Investors are kindly advised to pay attention to investment risks.The Company plans not to pay cash dividends issue bonus shares or convert capital reserves into

share capital.

2Bengang Steel Plates Co. Ltd. Interim Report 2026

Table of Contents

Ⅰ. Important Notice Table of Contents and Definiti....2

Ⅱ. Company Profile and Main Financial Index...........6

III. Management Discussion and Analysis...............9

IV. Corporate Governance Environment and Society.....28

V. Important Events................................. 30

VI. Status of Share Capital Changes and Shareholde...66

VII. Status of Bonds................................ 71

VIII. Financial Report.............................. 75

3Bengang Steel Plates Co. Ltd. Interim Report 2026

Reference File Directory

1. Financial statements containing the signatures and seals of legal representative chief financial

officer and chief accountant;

2. The originals of all company documents and announcements publicly disclosed during the

reporting period;

3. Interim reports published in other securities markets.

4Bengang Steel Plates Co. Ltd. Interim Report 2026

Definition

Terms to be defined Refers to Content of Definition

Bengang Bancai the Company the

Listed Company Refers to Bengang Steel Plates Co. Ltd.Ansteel Refers to Ansteel Group Co. Ltd.Bengang Group Refers to Bengang Group Co. Ltd.Bengang Steel Co. Bengang Co. Refers to Benxi Steel & Iron (Group) Co. Ltd.SSE Refers to Shenzhen Stock Exchange

Liaoning Provincial State-asset Refers to Liaoning State-owned Asset Supervisory andAdministration Management Committee

Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co. Ltd.Ansteel Finance Co. Refers to Ansteel Group Finance Co. Ltd.Angang Refers to Angang Steel Company Limited

Vanadium & Titanium Co. Refers to Pangang Group Vanadium & Titanium ResourcesCo. Ltd.Linggang Refers to Lingyuan Iron & Steel Co. Ltd.

5Bengang Steel Plates Co. Ltd. Interim Report 2026

Ⅱ. Company Profile and Main Financial Index

I. Company Information

Stock abbreviation Bengang Bancai Bengangban B Stock Code 000761 200761

Stock exchange for listing Shenzhen Stock Exchange

Company name in Chinese 本钢板材股份有限公司

Abbreviation of Company

name in Chinese 本钢板材

Company name in English

(If any) BENGANG STEEL PLATES CO. LTD.Abbreviation of Company

name in English (If any) BSP

Legal representative Wang Zhanwei

II. Contact Information

Secretary of the Board Representative of Stock Affairs

Name Liu Tiecheng Chen Liwen

Address No1-1 Gangtie Road Pingshan District No1-1 Gangtie Road Pingshan DistrictBenxi City Liaoning Province Benxi City Liaoning Province

Tel 024-47827003 024-47828980

Fax 024-47827004 024-47827004

Email ltcjldd@163.com bgbc000761@126.com

III. Other Information

1. Company Contact Information

Whether there are any changes in the Company's registered address office address and its postal code official website

and email address during the reporting period

□Applicable □Not applicable

There were no changes to the company's registered address office address (including postal code) website or email

address during the reporting period; for details please refer to the 2025 annual report.

2. Locations for Information Disclosure and Availability of Documents

Whether there are any changes in information disclosure media and location for document inspection during the

reporting period

□Applicable □Not applicable

6Bengang Steel Plates Co. Ltd. Interim Report 2026

There were no changes during the reporting period regarding the websites and media outlets (including their URLs)

where the company discloses its semi-annual reports nor regarding the location where the semi-annual reports are kept

available; for details please refer to the 2025 annual report.

3. Other Relevant Information

Changes in other relevant information during the reporting period

□Applicable □Not applicable

IV. Key accounting data and financial indicators

Whether the Company needs to retrospectively adjust or restate the accounting data of previous years

□Yes□No

Changes over previous

Current period Previous period

period

Operating income（RMB） 22335640944.40 24697800421.99 -9.56%

Net profit attributable to the

shareholders of the listed company -1907548241.52 -1399277780.90 -36.32%（RMB）

Net profit after deducting of

non-recurring gain/loss attributable -1926587790.58 -1450379795.78 -32.83%

to the shareholders of listed

company（RMB）

Net Cash flow generated by

706571945.53371629764.0490.13%

business operation（RMB）

Basic earnings per share -0.464 -0.341 -36.07%

(RMB/Share)

Diluted earnings per share -0.464 -0.341 -36.07%

(RMB/Share)

Weighted average net assets yield -27.29% -12.50% -14.79%

Changes over the end of the

2026/06/302025/12/31

previous year

Total assets（RMB） 45899118732.58 45770013536.58 0.28%

Net assets attributable to

shareholders of the listed company 5096022852.66 7935782007.83 -35.78%（RMB）

V. Differences between CAS and IFRS

1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese

accounting standards.□Applicable □Not applicable

There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting

standards during the reporting period.

7Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese

accounting standards.□Applicable □Not applicable

There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting

standards during the reporting period.VI. Items and Amount of Non-recurring Profits and Losses

□Applicable □Not applicable

Unit：RMB

Items Amount Notes

Gains and losses on disposal of non-current assets (including

the write off part of the provision for impairment) -22011971.70

Government subsidy attributable to profit and loss of current

period (except such government subsidy closely related to the

company's normal business operation meeting the regulation 52916603.16

of national policy and enjoyed constantly in certain quota or

quantity according to a certain standard)

Gains and losses of debt restructuring 53299.22

Other non-operating income and expenses other than above -6552754.01

Less: impact of income tax 4090301.81

impact on Non-controlling Interests (after tax) 1275325.80

Total 19039549.06 --

Specific circumstances of other items that meet the definition of non-recurring gains and losses:

□Applicable □Not applicable

The company has no other specific circumstances that meet the definition of non-recurring gains and losses.Explanation of situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information

Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.□Applicable □Not applicable

The company has no situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information

Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.

8Bengang Steel Plates Co. Ltd. Interim Report 2026

III. Management Discussion and Analysis

I. Main Business Operations During the Reporting Period

1. Industry Development Status

The company operates within the iron and steel industry—a fundamental sector of China's national economy that serves

as a crucial pillar for building a modern powerful nation and a key area for achieving green low-carbon development.In the first half of 2026 the domestic steel industry was characterized by contracting supply structurally divergent

demand high costs and profit pressures with a distinct pattern of "strong flat products versus weak long products."

Guided by policies to "control total volume optimize supply strengthen foundations and drive transformation" the

industry continued to regulate crude steel output and accelerate structural upgrades; however uneven downstream

demand recovery and an inverted relationship between raw material costs and product prices squeezed profit margins

intensifying overall operational pressure. Data from the National Bureau of Statistics and the China Iron and Steel

Association indicate that national output for crude steel pig iron and finished steel products all declined year-on-year

during the first six months of 2026. Cumulative crude steel output reached 500 million tonnes (down 3.0%

year-on-year); pig iron output was 427 million tonnes (down 2.8%); and finished steel output was 719 million tonnes

(down 0.9%). The China Steel Price Index (CSPI) fluctuated within a narrow range during the first half of the year with

the average price edging down; steel price increases failed to offset the rise in raw material costs. On the cost side the

market showed a trend of "strong coke versus weak ore": iron ore prices declined slightly while prices for coking coal

and coke surged driving up full-process smelting costs and widening the scope of industry-wide losses. Regarding

market demand domestic steel consumption showed significant divergence; the real estate market remained at a low

ebb causing a sharp drop in demand for long steel products used in construction. Conversely demand for flat steel

products remained resilient driven by sectors such as shipbuilding offshore wind power new energy vehicles and

equipment manufacturing; the share of steel consumed by the manufacturing sector continued to rise serving as a core

pillar of industry demand. Import and export activities faced pressure; overseas trade barriers and the implementation of

carbon tariff policies hampered steel exports resulting in a year-on-year decline in total export volume— though

high-end flat steel exports demonstrated greater resilience than ordinary carbon construction steel—while steel imports

continued to contract.

2. Main business main products and their uses

During the reporting period the Company’s primary business activities included iron and steel smelting rolling and processing

power generation coal chemicals special steel profiles railway operations import and export trade scientific research and product

sales. It has essentially established a premium steel production base centered on automotive steel offering a product portfolio

comprising over 60 varieties and more than 7500 specifications. Its flagship products—such as automotive exterior panels home

appliance sheets oil pipeline steel container plates and shipbuilding plates—are widely used in sectors including automotive

manufacturing home appliances petrochemicals aerospace machinery manufacturing energy and transportation construction and

decoration and metal products and are exported to over 60 countries and regions. There were no significant changes to the

Company's core business during the reporting period.

3. Business model

Procurement Model: The Company's procurement model encompasses both domestic and international procurement. Domestic

procurement is conducted through collaborative purchasing centralized tendering (both public and invited) price inquiries and

comparisons competitive bidding and negotiations. International procurement is carried out via long-term agreements direct

purchasing public and invited tendering price inquiries and comparisons competitive negotiations and consultative purchasing;

these activities are primarily handled by Angang International Trade Benxi Branch.Sales Model: The company's sales operations are divided into domestic and export markets. Domestic sales primarily focus on

futures-based transactions utilizing distribution channels centered on direct supply general distribution and engineering projects.Contract orders are organized in advance on a monthly basis and production is subsequently scheduled in accordance with these

orders. Tailored to the specific characteristics of different regions distribution channels and industries the company implements a

9Bengang Steel Plates Co. Ltd. Interim Report 2026

variety of pricing strategies and sales methods—including deferred settlement for futures "one factory one policy" approaches and

index-based pricing. Export sales are handled by Ansteel International Trade Benxi Branch which acts as the company's export

agent with the company covering the associated agency fees.

4.Main Performance Drivers

During the reporting period the Company closely adhered to the strategic deployment of "concentrating efforts to tackle five key

priorities and achieving new starts in three areas." It fully implemented the requirements to "focus on one central theme anchor

development in three transformations enhance four key capabilities and achieve five new breakthroughs" while steadfastly

advancing the "0115" guiding principles and maintaining a work style characterized by rigor meticulousness and pragmatism.

(1) By prioritizing technological innovation the company has achieved new breakthroughs in high-end development. Anchored in

technological innovation and a strategy focused on high-end products the company has tackled the challenges of developing

"extreme-specification" products and concentrated on enhancing quality and efficiency through core controlled-rolling and

controlled-cooling processes. It has continuously refined its process systems optimized production line performance and expanded

its presence in high-end markets. Significant breakthroughs were achieved in mastering technologies for extreme specifications.Through targeted R&D efforts—including optimizing coil properties redesigning alloy compositions and iterating rolling

processes—the company successfully established a production workflow on its 2300 hot-rolling line for ultra-wide ultra-thick

plates (ranging from 20–28 mm in thickness and 2000–2190 mm in width). The launch of the 2190 mm extreme-width product

marked a global first creating a flagship domestic product in this category and filling a gap in the industry.

(2) By harnessing the power of digital enablement the company has achieved significant new milestones in intelligent development.

Committed to driving industrial model transformation through intelligence the company has upgraded from an "experience-driven"

approach to a dual-driver model powered by both data and algorithms earning the AAAA-level certification for the national

management system for the integration of industrialization and information technology. Efforts to accelerate industrial

digital-intelligence integration have been intensified; by establishing a "smart model matrix" that connects the entire data

chain—spanning steelmaking hot rolling and cold rolling—the company now covers five key dimensions: process optimization

predictive equipment maintenance precision energy management marketing decision support and precise quality traceability.Smart models are being implemented and delivering results in a phased categorized manner. Focusing on core areas such as cost

accounting lean operations and value creation the company has successfully developed and deepened the application of 41 smart

models.

(3) Focusing on the "Dual Carbon" strategy the company has made significant strides in its green transformation. Guided by this

strategy and targeting key production processes—coking sintering ironmaking steelmaking and rolling—the company has

intensified management upgrades process improvements and the optimization of its energy structure. It has continued to

consolidate the results of its ultra-low emission retrofitting. By implementing comprehensive ultra-low emission controls covering

organized emissions fugitive emissions and clean transportation the company has substantially elevated its environmental

management standards achieving a 25.7% year-on-year reduction in pollutant emissions. Efforts to achieve world-class energy

efficiency have accelerated; key energy projects were successfully executed with two 135MW power generation units successfully

connected to the grid. Production operations were reorganized with a focus on energy efficiency; in June the self-generated power

ratio exceeded 80% and utility costs (water and electricity) fell below 80 yuan per unit marking the first time the "Double 80"

targets were surpassed and setting a historic record. Energy conversion efficiency improved dramatically with the self-generated

power ratio reaching the industry's 90th percentile and cumulative converter gas recovery hitting a record high of 139.2 m3/t.II. Core Competence Analysis

The company adheres to an innovation-driven approach and a "premium + service" development model with strategic goals to build

an internationally competitive premium steel plate base a leading domestic special steel base and a comprehensive service provider.By playing a leading role in strategy the company focuses on quality improvement efficiency enhancement product upgrades

technological innovation and green and smart manufacturing. These efforts aim to innovate business management strategies

enhance core competitiveness and drive high-quality green and smart development.

1. Production and Manufacturing Capacity: Guided by the philosophy of "prioritizing efficiency and creating value" the company

deepened the operation of "virtual business units" extending cost-conscious management to every production line product variety

and job role. Efforts focused on enhancing "eight key efficiency metrics" and optimizing production line positioning to ensure

high-efficiency output for active lines while minimizing expenses for idle ones. The company advanced efficiency improvements

across the entire value chain implementing an operational model defined by "extreme satisfaction extreme efficiency and extreme

cost control." First production efficiency improved; in the first half of the year the company broke various production records 151

times setting an all-time high. Second production costs continued to decline. Third technical and quality capabilities advanced with

cumulative production of automotive steel sheets reaching 1.2308 million tons.

2. Equipment Transformation and Upgrading: For 2026 the company issued a fixed-asset investment plan totaling RMB 1.492

billion. Projects implemented include the rainwater-sewage separation upgrade for the Steelmaking Plant and Fujinhe River area; the

quality and efficiency enhancement upgrade for the No. 5 galvanizing line at the Cold Rolling Plant (targeting high-grade products);

the upgrade of the Bengang-POSCO No. 3 galvanizing line for high-grade automotive sheet production; and a new round of

large-scale technological IT and environmental upgrades—exemplified by the "smart factory" transformation of the Hot Strip Mill's

2300 line. Currently the rainwater-sewage separation project at the Ironmaking Plant's coking section the environmental upgrade

10Bengang Steel Plates Co. Ltd. Interim Report 2026

(vibrating screens and passive dust removal) at the Resource Service Branch and the enclosure of conveyor belt head/tail pulleys and

feed points at the Ironmaking Plant have all been put into operation; meanwhile the quality and efficiency enhancement project for

the Hot Strip Mill's 2300 line is proceeding steadily.

3. New Product Development Capability: The company completed the development of 20 new products and secured orders totaling

73.5 thousand tonnes. It advanced the iterative upgrading of high-strength automotive steels successfully producing a trial batch of

1000 MPa-grade hot-dip galvanized dual-phase steel. Focusing on the home appliance steel market the company developed pickled

enameling steel thereby filling a gap in its product portfolio. Through targeted technical breakthroughs it achieved stable production

of CCSB-grade shipbuilding plate steel in an ultra-thick specification (26.0 mm); the product has passed China Classification Society

(CCS) certification and is qualified for supply. Significant progress was made in expanding overseas markets; regarding exported

high-end grinding ball steel process optimization resolved technical bottlenecks in ultrasonic Class A flaw detection for

large-specification products and overcame issues such as high defect rates during the straightening of high-carbon steel.

4. Technological Innovation Capability: To strengthen industry-academia collaboration the company partnered with Xi'an Jiaotong

University on the project "Research on Edge Cracking in DP980-DH980 High-Strength Steel Under Complex Loading Conditions"

facilitating the transfer of mature technological achievements from universities and research institutes to the enterprise. Regarding

standards the company is currently developing four international standards nine national standards and one group standard; the

revision of the ISO 9681 international standard led by the company has been completed and is undergoing pre-publication review

while the revision of three national standards—including GB/T 17600—has also been completed and submitted to the

Standardization Administration of China for review. In terms of intellectual property the company filed 69 patent applications

(including 47 for inventions) and was granted 37 patents (including 28 for inventions). Regarding technological achievements the

company won two provincial- or ministerial-level Science and Technology Progress Awards: the project "Collaborative Technology

for Digital-Enabled Automotive Steel Forming Crash Safety and Lightweighting and Its Full-Chain Engineering Transformation"

received the Second Prize of the Liaoning Province Science and Technology Award and the project "Development and Large-Scale

Engineering Application of Key Technologies for Precision Forming and Crash Safety of High-Performance Automotive Steel Under

Complex Loads" won the Third Prize of the Science and Technology Innovation Award from the China Industry-University-Research

Institute Collaboration Association.

5. Green Development Capability: The company is prioritizing initiatives such as the trial production of "green steel" products the

certification of low-carbon steel grades and the development of a carbon management platform. It has successfully secured

certification for three low-carbon steel grades—including pickled steel SPH270D—for Toyota’s technical reserve projects as well as

for deep-drawing steel St04D+Z and 590DPD+Z for FAW’s technical reserve projects; additionally it obtained certification for

hot-dip galvanized green steel DC53D+Z intended for use in Sony TV back panels. By pioneering a combined process route utilizing

"blast furnace hot metal + electric arc furnace (EAF) molten steel (100% scrap)" the company has launched the production of

low-carbon automotive steel. Three process models have been explored: a 220t hot metal + 120t special steel molten steel model

(35% scrap ratio); a 170t hot metal + 170t special steel molten steel model (50% scrap ratio); and a 50t hot metal + 200t molten steel

model (80% scrap ratio). These models enable carbon emission reductions ranging from 30% to 60%. To enhance its competitiveness

in product carbon management and meet the requirements of high-end supply chains the company is collaborating with Baosight

Software to build a carbon management platform; the project has currently entered the implementation phase.

6. Intelligent Manufacturing Capability: Adhering to a strategy driven by the "Smart Index" and supported by the digital and

intelligent transformation of production processes the company has steadily implemented smart manufacturing. Intelligent projects

launched in 2025—including the smart factory in the No. 3 Cold Rolling area Phase II of the integrated quality data management

platform and the adaptation of the plate information system for independent and controllable operation—have already seen full or

partial functional deployment. Plans for 2026 include investments in Phase II of the plate information system adaptation and the

smart factory upgrade for the 2300mm hot continuous rolling line. Driven by digital and intelligent technological innovation the

company has achieved a data assetization rate of 92%. It has deployed 26 robotic units for "3D" tasks (dirty dangerous and

demanding)—such as blast furnace inspections temperature measurement and sampling and slag removal—raising the automation

substitution rate from 9% to 32%. The Smart Index score reached 82.67 marking a transition from the "integration" level to the

"optimization" level—a 19.36% increase from the previous 69.26—thereby accelerating the pace of smart manufacturing for its plate

products. The company has been recognized as an "Excellent-Level Smart Factory" by the Ministry of Industry and Information

Technology (MIIT) and an "Advanced-Level Smart Factory" by the Liaoning Provincial Department of Industry and Information

Technology; it was also named a "Smart Steel Demonstration Unit" at the 10th Smart Steel Technology and Equipment Development

Conference and a benchmark enterprise for digital transformation in Liaoning Province while successfully obtaining AAAA-level

certification for the integration of industrialization and informationization.III. Main Business Analysis

Overview

Please refer to the section "I. Main Business Operations During the Reporting Period."

Year-over-year changes in key financial data

Unit: RMB

11Bengang Steel Plates Co. Ltd. Interim Report 2026

Change over last

Current period Previous period Reason

year

Operating income 22335640944.40 24697800421.99 -9.56%

Operating cost 23417107587.05 25441217248.92 -7.96%

Selling and distribution

57847251.9861464166.53-5.88%

expenses

General and

administrative 270993726.11 285764896.43 -5.17%

expenses

Attributable to an increase in

interest expenses on

Financial expenses 262347038.94 208340955.08 25.92% interest-bearing liabilities and

exchange losses during the

current period.Due to factors such as the

recognition of deferred

Income tax expenses 68072357.45 19976028.30 240.77% income tax for the period and

an increase in taxes and fees

paid.R&D expenses 735966482.00 947389590.00 -22.32%

Due to a decrease in cash

Net cash flows from

706571945.53 371629764.04 90.13% outflows for purchases during

operating activities

the current period.Due to a decrease in cash

payments for the acquisition

Net cash flows from

-835819961.61 -948969224.56 11.92% and construction of long-term

investing activities

assets during the current

period.Due to factors such as the

Net cash flows from repayment of maturing

844277450.5693464711.63803.31%

financing activities convertible bonds and an

increase in bank borrowings.Attributable to factors such as

a decrease in cash outflows

for purchases and the

Net increase in cash acquisition or construction of

672713356.50-471693191.36242.62%

and cash equivalents long-term assets as well as an

increase in bank borrowings

obtained to repay maturing

convertible bonds.Significant changes in the composition or sources of the Company's profits during the reporting period.□Applicable □Not applicable

There were no significant changes in the composition or sources of the company's profit during the reporting

period.Breakdown of Operating Revenue

Unit：RMB

Current period Previous period Change over

12Bengang Steel Plates Co. Ltd. Interim Report 2026

Amount Proportion Amount Proportion last year

Total operating

22335640944.40100%24697800421.99100%-9.56%

revenue

By industries

Industry 22335640944.40 100.00% 24697800421.99 100.00% -9.56%

By product

Steel plate 21230381832.17 95.05% 23720436767.59 96.04% -10.50%

Others 1105259112.23 4.95% 977363654.40 3.96% 13.09%

By region

Domestic 18498429591.74 82.82% 20437177010.22 82.75% -9.49%

International 3837211352.66 17.18% 4260623411.77 17.25% -9.94%

Industries products regions or sales models accounting for more than 10% of the company's revenue or

operating profit

□Applicable □Not applicable

Unit：RMB

Operating Operating Gross

Operating Operating costs Gross income costs change marginrevenue margin change over over last change over

last year year last year

By industries

22335640944.423417107587.0

Industry -4.84% -9.56% -7.96% -1.83%

05

By product

Steel plate 21230381832.1 22317462327.2 -5.12% -10.50% -8.78% -1.98%

74

Others 1105259112.23 1099645259.81 0.51% 13.09% 12.63% 0.40%

By region

18498429591.719389365082.0

Domestic -4.82% -9.49% -8.20% -1.47%

48

International 3837211352.66 4027742504.97 -4.97% -9.94% -6.76% -3.57%

In the case where the statistical scope of the company's main business data has been adjusted during the reporting period the

company's main business data for the most recent year adjusted according to the reporting period's scope.□Applicable □Not applicable

IV. Analysis of Non-core Business

□Applicable □Not applicable

Unit：RMB

Amount Proportion in Whethertotal profit Explanation of cause sustainable

Primarily consist of gains

Other income 54759372.15 -3.03% No

from government subsidies.Primarily consist of gains

Investment income (losses

-13043716.99 0.72% from the discounting of bank No

are marked with a "-")

acceptance bills.Impairment provision

Credit impairment loss

-9502738.36 0.53% recognized for accounts No

(losses are marked with a "-")

receivable.Asset impairment loss (losses -14435000.34 0.80% Provision for Inventory No

13Bengang Steel Plates Co. Ltd. Interim Report 2026

are marked with a "-") impairment losses.Mainly due to the impact of

Non-operating income 6082381.82 -0.34% scrapping of non-current No

assets and other gains.Primarily attributable to

losses from the retirement of

Non-operating expenses 34760019.49 -1.92% No

non-current assets and other

expenditures.V. Assets and Liabilities

1. Significant Change of Assets Components

Unit：RMB

2026/06/30 2025/12/31 Proporti Notes to

on significa

Amount Proportion in Proportion in ntthe total assets Amount the total assets change change

Cash and cash

1801115557.543.92%1127390675.152.46%1.46%

equivalents

Accounts

receivable 1284974584.51 2.80% 1178780456.77 2.58% 0.22%

Inventories 6071509678.50 13.23% 6369194886.12 13.92% -0.69%

Long-term

equity 43269884.04 0.09% 43269884.04 0.09% 0.00%

investment

Fixed assets 28412673622.828503203951.19 62.10% 62.08% 0.02%

9

Construction in

process 2621834772.76 5.71% 3074712066.38 6.72% -1.01%

Right of use

2863353470.276.24%2607155393.905.70%0.54%

assets

Short-term

4575371374.999.97%333660470.120.73%9.24%

loans

Contract

2701578357.215.89%2736697947.255.98%-0.09%

liabilities

Long-term

9227985607.8620.10%6014469758.1113.14%6.96%

loans

Lease liabilities 2313796245.61 5.04% 2239436105.64 4.89% 0.15%

2. Overview of Major Overseas Assets.

□Applicable □Not applicable

3. Assets and Liabilities Measured at Fair Value

□Applicable □Not applicable

Unit：RMB

Profit and

loss from Accumulated Impairme Amount Amount

Item Beginning changes in

fair value nt accrued purchas sold in the Other Ending

balance fair value changes in the ed in the

in the recognised in current current

current changes balance

period

current equity period period

14Bengang Steel Plates Co. Ltd. Interim Report 2026

period

Financial assets

4. Other

equity

890420831.77-165618690.23890420831.77

instruments

investment

Subtotal 890420831.77 -165618690.23 890420831.77

Total 890420831.77 -165618690.23 890420831.77

Financial

liabilities 0.00 0.00

Other changes

Whether there has been a significant change in the measurement attributes of the company's main assets during the reporting period

□Yes□No

4. Restricted Assets by the End of the Period

Ending Balance

Items Gross Book Value Net Book Value Restricted types Status

Cash at bank and on Margin for bills/notes margin Margin for bills/notes

hand 840931894.73 840931894.73 for letters of credit margin for letters of credit

Notes receivable 3000000.00 3000000.00Pledged Pledged

Accounts receivable

Pledged Pledged

financing 124228068.50 124228068.50

Total 968159963.23 968159963.23

VI. Analysis of Investment Status

1. Overview

□Applicable □Not applicable

2. Significant equity investment obtained during the reporting period

□Applicable □Not applicable

3. Major non-equity investments ongoing during the reporting period.

□Applicable □Not applicable

4. Financial asset investments

(1) Securities investment

□Applicable□Not applicable

The company did not have any securities investments during the reporting period.

(2) Derivative investment situation

□Applicable□Not applicable

15Bengang Steel Plates Co. Ltd. Interim Report 2026

The company did not have any derivative investments during the reporting period.

5. Use of Raised Funds

√ Applicable □ Not applicable

(1) Use of Raised Funds

√Applicable □ Not applicable

Unit: 10 thousand yuan

Fund

Usage

Total Amou

Ratio

Total Funds Purpos nt of

at the Cumul

Total Funds Cumul Redire Cumul Total e and raised

Fundra Securit Net End of ative

amoun Used ative cted ative Unuse destina funds

ising ies Raised the Redire

Year t of in the Funds During Redire d tion of idle for

Metho listing Funds Report cted

funds Curren Used the cted Raised unused more

d date (1) ing Funds

raised t (2) Report Funds Funds raised than

Period Ratio

Period ing funds two

(3)=

Period years

(2)/

(1)

Issue

of August

2020 conver 4 680000 675920 0 487823.88 72.17% 101479 101479 15.01% 0 None 0

tible 2020

bonds

Total -- -- 680000 675920 0 487823.88 72.17% 101479 101479 15.01% 0 -- 0

Explanation of the overall use of raised funds

1. Use of Funds Raised for Investment Projects

For details regarding the actual use of raised funds by the Company from January to June 2026 please refer to Appendix 1

"Comparison Table of the Use of Raised Funds."

2. Changes in the Implementation Location or Method of Investment Projects

During the reporting period there were no changes in the investment projects funded by the raised funds nor were there any changes

in their implementation locations or methods.

3. Initial investment and replacement of raised funds investment projects

16Bengang Steel Plates Co. Ltd. Interim Report 2026

The 13th meeting of the 8th Board of Directors and the 11th meeting of the 8th Board of Supervisors of the Company reviewed and

approved the "Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Fund Investment Projects and

Paid Issuance Expenses" agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised funds

investment projects and paid issuance expenses with a total replacement amount of RMB 366180860.17. This replacement does not

involve a disguised change in the use of raised funds does not affect the normal progress of raised funds investment projects and the

replacement time is no more than 6 months from the time the raised funds arrive which is in compliance with relevant laws and

regulations.Before the raised funds were received the company had used self-raised funds to pre-invest in the raised projects according to the

project progress. As of May 31 2020 the amount of self-raised funds pre-invested was RMB 365630860.17 including the steel

plant No. 8 casting machine project was RMB 76278945.59 the iron plant No. 5 blast furnace capacity replacement project was

RMB 119043290.09 the special steel electric furnace upgrade and transformation project was RMB 59948807.90 the CCPP

power generation project was RMB 95098084.16 and the steel plant No. 4-6 converter environmental protection transformation

project was RMB 15261732.43. As of July 6 2020 the above-mentioned issuance expenses of RMB 55000.00 paid by the

company's own funds were replaced with raised funds.From March 1 2019 to May 31 2021 the company used self-raised funds to pay for the construction of projects funded by the raised

funds amounting to RMB 1082356809.47 including RMB 180000.00 for the high-grade high-magnetic induction non-oriented

silicon steel project RMB 55364729.08 for the No. 8 casting machine project of the steelmaking plant RMB 628049033.12 for

the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB 253298156.22 for the upgrading and

transformation project of the special steel electric furnace RMB 115353050.36 for the CCPP power generation project and RMB

30111840.69 for the environmental protection transformation project of the No. 4-6 converters of the steelmaking plant. The

company has transferred the above amounts from the raised funds account to the general deposit account in 2021.From June 1 2021 to May 31 2022 the company used self-raised funds to pay for the construction of projects funded by the raised

funds amounting to RMB 614208698.23 including: RMB 12881890.61 for the No. 8 Casting Machine Project of the Steelmaking

Plant RMB 17508088.97 for the Capacity Replacement Project of the No. 5 Blast Furnace of the Ironmaking Plant RMB

364155482.35 for the Upgrading and Reconstruction Project of the Special Steel Electric Furnace RMB 186441497.75 for the

CCPP Power Generation Project and RMB 33221738.55 for the Environmental Protection Reconstruction Project of the No. 4 and

No. 6 Converters of the Steelmaking Plant. The company has transferred the above amounts from the raised funds account to the

general deposit account in 2022.From June 1 2022 to May 31 2023 the company used self-raised funds to pay for the construction of the raised funds investment

projects amounting to RMB 494502583.01 of which RMB 15316136.52 was used for the capacity replacement project of No. 5

blast furnace of the ironmaking plant RMB 19796661.74 for the CCPP power generation project RMB 429392157.76 for the

upgrading and transformation project of the special steel electric furnace RMB 21452968.70 for the environmental protection

transformation project of No. 4-6 converters of the steelmaking plant and RMB 8544658.29 for the No. 8 casting machine project

of the steelmaking plant. As of December 31 2023 the company has transferred the funds from the raised funds account to the

general deposit account.From June 1 2023 to May 31 2024 the company used self-raised funds to pay for the construction of the raised investment projects

amounting to RMB 102185736.55 of which RMB 24887030.75 was used for the No. 8 casting machine project of the steelmaking

plant RMB 5111121.59 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant RMB

60162375.13 for the upgrading and transformation project of the special steel electric furnace RMB 5454868.60 for the CCPP

power generation project and RMB 6570340.48 for the environmental protection transformation project of the No. 4-6 converters

of the steelmaking plant. As of December 31 2024 the company has transferred the funds from the raised funds account to the

general deposit account.From June 1 2024 to May 31 2025 the company has no prior investment or replacement of raised funds in investment projects.From June 1 2025 to May 31 2026 the company has no prior investment or replacement of raised funds in investment projects.

17Bengang Steel Plates Co. Ltd. Interim Report 2026

4. Using idle raised funds to temporarily supplement working capital

During the reporting period the Company did not use temporarily idle raised funds to temporarily supplement working capital.

(1) Status of the temporary use of idle raised funds to supplement working capital in 2020

The company used idle raised funds of RMB4180000000.00 (RMB1010000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB220000000.00 for the No. 8 casting machine project of the steel plant RMB800000000.00

for the capacity replacement project of No. 5 blast furnace of the iron plant RMB1300000000.00 for the special steel electric

furnace upgrading and renovation project RMB700000000.00 for the CCPP power generation project and RMB150000000.00 for

the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement working capital.The matter was reviewed and approved at the 14th meeting of the 8th Board of Directors and the 12th meeting of the 8th Board of

Supervisors held on July 28 2020. The company's independent directors have expressed their clear consent. The time for

supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 27 2021 the Company has returned all of the idle raised funds used to temporarily supplement working capital to the

Company's special account for raised funds.

(2) Status of the temporary use of idle raised funds to supplement working capital in 2021

The company used idle raised funds of RMB 3030000000.00 (RMB 1010000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB 150000000.00 for the No. 8 casting machine project of the steel plant RMB

160000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 1000000000.00 for the special

steel electric furnace upgrade and renovation project RMB 590000000.00 for the CCPP power generation project and RMB

120000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily

supplement working capital. The matter was reviewed and approved at the 19th meeting of the 8th Board of Directors and the 17th

meeting of the 8th Board of Supervisors held on July 28 2021. The company's independent directors have expressed their clear

consent. The time for replenishing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 26 2022 the Company has returned all of the idle raised funds used to temporarily supplement working capital to the

Company's special account for raised funds.

(3) Status of the temporary use of idle raised funds to supplement working capital in 2022

The company used idle raised funds of RMB 3014000000.00 (RMB 1015000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB 165000000.00 for the No. 8 casting machine project of the steel plant RMB

175000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 933000000.00 for the special

steel electric furnace upgrade and renovation project RMB 578000000.00 for the CCPP power generation project and RMB

148000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily

supplement working capital. The matter was reviewed and approved at the third meeting of the ninth board of directors and the third

meeting of the ninth board of supervisors held on July 28 2022. The company's independent directors have expressed their clear

consent. The time for replenishing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 17 2023 the Company has returned all of the idle raised funds used to temporarily supplement working capital to the

Company's special account for raised funds.

18Bengang Steel Plates Co. Ltd. Interim Report 2026

(4) Status of the temporary use of idle raised funds to supplement working capital in 2023

The company used idle raised funds of RMB 1961200000.00 (RMB 1015000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB 125000000.00 for the No. 8 casting machine project of the steel plant RMB

145000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB 188000000.00 for the special

steel electric furnace upgrade and renovation project RMB 393200000.00 for the CCPP power generation project and RMB

95000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement

working capital. The matter was reviewed and approved at the 17th meeting of the 9th Board of Directors and the 12th meeting of the

9th Board of Supervisors held on July 19 2023. The company's independent directors have expressed their clear consent. The time

for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 17 2024 the Company has returned all of the idle raised funds used to temporarily supplement working capital to the

Company's special account for raised funds.

(5) Status of the temporary use of idle raised funds to supplement working capital in 2024

The company used idle raised funds of RMB 1860000000.00 (RMB 1015000000.00 for high-grade and high-magnetic induction

non-oriented silicon steel project RMB 100000000.00 for the No. 8 casting machine project of the steel plant RMB

140000000.00 for the capacity replacement project of No. 5 blast furnace of the iron plant RMB120000000.00 for the special steel

electric furnace upgrade and renovation project RMB 397000000.00 for the CCPP power generation project and RMB

88000000.00 for the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement

working capital. The matter was reviewed and approved at the 26th meeting of the 9th Board of Directors and the 17th meeting of the

9th Board of Supervisors held on July 18 2024. The company's independent directors have expressed their clear consent. The time

for supplementing working capital shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".As of July 15 2025 the Company has returned the aforementioned idle raised funds which were utilized to temporarily supplement

working capital to the Company's designated special account for raised funds.

(6) Status of the temporary use of idle raised funds to supplement working capital in 2025

The proposal regarding the temporary use of RMB 1015000000.00 in idle raised funds—originally designated for the "High-Grade

High-Magnetic-Induction Non-Oriented Silicon Steel Project"— to supplement working capital was reviewed and approved at the

Second Meeting of the 10th Board of Directors and the Second Meeting of the 10th Board of Supervisors held on July 16 2025. The

Company's Independent Directors have issued an explicit opinion of consent regarding this matter; the duration of this working

capital supplementation shall not exceed 12 months.The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to

temporarily supplement working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the Company's

Use of Idle Raised Funds to Temporarily Supplement Working Capital".On April 23 2026 the Company fully returned the idle raised proceeds of RMB 1015 million—which had been used to temporarily

supplement working capital—to the Company’s designated account for raised proceeds and notified its sponsor and sponsor

representatives.

5. Cash management using idle raised funds

The company did not use idle raised funds for cash management during the reporting period.

6. Use of surplus raised funds

19Bengang Steel Plates Co. Ltd. Interim Report 2026

On April 2 2025 the company held the 35th meeting of the 9th Board of Directors and the 21st meeting of the 9th Board of

Supervisors to review and approve the "Proposal on Completing Some Fundraising Projects and Using the Surplus Fundraising

Funds to Permanently Supplement Working Capital". Given that the Company's 2020 public issuance of convertible corporate bonds

which raised funds for investment projects including the "Steel Plant No. 8 Casting Machine Project" the "Iron Plant No. 5 Blast

Furnace Capacity Replacement Project" the "Special Steel Electric Furnace Upgrading and Reconstruction Project" the "CCPP

Power Generation Project" and the "Steel Plant No. 4-6 Converter Environmental Reconstruction Project" have essentially

completed investment in order to rationally utilize the raised funds reduce the Company's financial expenses enhance the

Company's sustainable operating capacity and fully utilize the raised funds and in accordance with the requirements of relevant laws

regulations and normative documents such as the "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory

Requirements for the Management and Use of Raised Funds by Listed Companies" and the "Shenzhen Stock Exchange Guidelines

for Self-Regulatory Supervision of Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies" the

Company intends to use the remaining raised funds of RMB 870.18 million (the specific amount will be based on the bank interest

balance settled on the date the funds are transferred) from these completed investment projects to permanently supplement its

working capital for the Company's daily operations.In addition the company does not use the surplus funds from the raised funds investment projects for other raised funds investment

projects or non-raised funds investment projects.The sponsor of the company's public offering of convertible bonds agreed that the company would use the remaining raised funds to

permanently supplement its working capital and issued the "Guotai Junan Securities Co. Ltd.'s Verification Opinion on the

Completion of Some Fundraising Projects of Bengang Plate Co. Ltd. and the Use of the Surplus Raised Funds to Permanently

Supplement Working Capital".

7. Changes in the Use of Raised Funds

On April 24 2026 the Company convened the ninth meeting of the tenth Board of Directors where the "Proposal on Changing the

Use of Certain Raised Funds to Permanently Supplement Working Capital" was approved with 9 votes in favor 0 against and 0

abstentions. The Board agreed to terminate the raised-fund investment project titled "High-Grade High-Magnetic-Induction

Non-Oriented Silicon Steel Project" and to utilize the entire remaining balance of the project's raised funds—amounting to RMB

1014.79 million—to permanently supplement working capital.

Apart from this the Company has not used the remaining funds from raised-fund investment projects for other raised-fund

investment projects or for projects not funded by raised proceeds.The sponsor for the Company's public issuance of convertible bonds consented to the Company's use of the remaining raised funds to

permanently supplement working capital and issued the "Verification Opinion of Guotai Haitong Securities Co. Ltd. on Bengang

Plate Co. Ltd.'s Change of Use of Certain Raised Funds to Permanently Supplement Working Capital."

8. Utilization of excess raised funds

The Company has no instances of utilizing excess raised funds.

20Bengang Steel Plates Co. Ltd. Interim Report 2026

(2) Fundraising commitments

√Applicable □ Not applicable

Unit: 10 thousand yuan

Commit If the

Investm

ted Projec

ent Project

Finan Investm t Been Total Cumulative Has There

Secur Adjusted Investmen Progress Reached Cumulative

cing ent Chang Commit Investment Benefits Been a

ities Projec Total t Amount by the Predeterm Benefits Expected

Proje Projects ed ted Amount by Achieved in Major

Listin t Investmen for the End of ined Achieved by Benefits

ct and (Inclu Investm the End of the Reporting Change in

g Nature t Amount Reporting the Usable the End of the Achieved

Nam Excessi ding ent the Period Period Project

Date (1) Period Period Status Period

e ve Fund Partial Amount (2) Feasibility

(3) = Date

Allocati Chang

(2)/(1)

on es)

Committed Investment Projects

High-gr

ade high

Beng magneti

ang c Manuf

Conv Augu inductio acturi

March 1 Not

ertibl st 4 n ng Yes 101620 101620 0 141 0.14% 0 0 No

2032 applicable

e 2020 non-orie constr

Bond nted uction

s silicon

steel

project

Beng

Steel

ang Manuf

plant

Conv Augu acturi

No. 8 October

ertibl st 4 ng No 33500 33500 0 22756.19 67.93% -18919.38 -74603.98 No No

casting 31 2020

e 2020 constr

machine

Bond uction

project

s

Beng Augu Blast Manuf No 96000 96000 0 81187.52 84.57% November -24816.28 -74043.65 No No

21Bengang Steel Plates Co. Ltd. Interim Report 2026

ang st 4 furnace acturi 30 2020

Conv 2020 No. 5 ng

ertibl capacity constr

e replace uction

Bond ment

s project

Beng

Special

ang Manuf

steel

Conv Augu acturi

electric December

ertibl st 4 ng No 141600 141600 0 129042.92 91.13% -10870.22 -10870.22 No No

furnace 31 2025

e 2020 constr

upgrade

Bond uction

project

s

Beng

ang CCPP Manuf

Conv Augu power acturi

December

ertibl st 4 generati ng No 83300 83300 0 43499.08 52.22% 10648.81 95201.93 Yes No

312022

e 2020 on constr

Bond project uction

s

Steel

plant

Beng

No. 4-6

ang Manuf

converte

Conv Augu acturi

r December Not

ertibl st 4 ng No 19900 19900 0 11197.17 56.27% 0 0 No

environ 31 2020 applicable

e 2020 constr

mental

Bond uction

transfor

s

mation

project

Beng

ang Repay

Repaym

Conv Augu ment

ent of August 4 Not

ertibl st 4 of No 200000 200000 0 200000 100.00% 0 0 No

bank 2020 applicable

e 2020 bank

loans

Bond loans

s

22Bengang Steel Plates Co. Ltd. Interim Report 2026

Subtotal of Committed Investment

--6759206759200487823.88-----43957.07-64315.92----

Projects

Use of Over-Raised Funds

Augu Not

Not

None st 4 None applic No 0 0 0 0 0.00% 0 0 No

applicable

2020 able

Total -- 675920 675920 0 487823.88 -- -- -43957.07 -64315.92 -- --

Explanation of

Project The project for high-grade high-magnetic-induction non-oriented silicon steel faced the risk of technological obsolescence due to the rapid pace of technological evolution in

Delays the sector; furthermore intensified market competition and increasing sales challenges meant that continued investment risked tying up capital and failing to meet return

Expected expectations. The Company resolved to terminate this project on April 24 2026.Returns and The project for No. 8 Continuous Casting Machine at the Steelmaking Plant failed to meet projected economic benefits as overall steel market conditions and sales prices

Reasons fell short of expectations.(Including

Reasons for The capacity replacement project for No. 5 Blast Furnace at the Ironmaking Plant failed to meet projected economic benefits as overall steel market conditions and sales

Selecting "Not prices fell short of expectations.Applicable" The upgrade and renovation project for the special steel electric arc furnace failed to meet projected economic benefits as overall steel market conditions and sales prices fell

for Expected short of expectations.Returns)

Description of

Significant

Changes in None

Project

Feasibility

Amount

Purpose and

Progress of Not applicable

Over-Raised

Funds

Cases of

arbitrarily

changing the Not applicable

purpose of

raised funds or

illegally

23Bengang Steel Plates Co. Ltd. Interim Report 2026

occupying

raised funds

Changes in the

Implementatio

n Location of

Not applicable

Fundraising

Investment

Projects

Adjustments

in the

Implementatio

n Method of Not applicable

Fundraising

Investment

Projects

Advance

Investment Applicable

and

Replacement

of Fundraising

Investment For details please refer to the content stated in Special Report Section III (3).Projects

Use of Idle

raised Funds Applicable

for Temporary

Supplementati

on of Working For details please refer to the content stated in Special Report Section III (4).Capital

Applicable

Amount and The company will close the investment projects raised from its 2020 public offering of convertible corporate bonds and will use the remaining proceeds of RMB870.1762

Reasons for million (the specific amount will be determined by the bank's interest balance on the day the funds are transferred) to permanently supplement its working capital. The main

Surplus raised reasons for the remaining proceeds are: 1. The company consistently adheres to the principles of rationality economy and efficiency in implementing the investment

Funds in projects strictly adhering to relevant regulations on the management of raised funds to ensure optimal capital allocation and cost control while ensuring project quality.Project When preparing the project feasibility study the company calculated the investment project based on the current production technology and process plan. However as the

Implementatio company gained experience in early production its capabilities in equipment selection procurement and production line optimization continued to grow and economies of

n scale emerged effectively reducing construction costs. Furthermore during project implementation the company strengthened cost control and budget management at all

stages based on actual needs rationally allocated resources and optimized construction expenditures further reducing overall project costs. These measures not only enabled

24Bengang Steel Plates Co. Ltd. Interim Report 2026

the project to proceed smoothly but also resulted in surplus proceeds from the investment. 2. Due to the cyclical nature of the construction of the raised funds to improve the

efficiency of the raised funds the company has comprehensively arranged funding sources during project implementation taking into account actual funding needs and

plans and has preemptively used its own funds to meet some of the phased funding needs. 3. The raised funds projects concluded this time have outstanding contract

balances warranty deposits and other outstanding amounts. Due to the long timeline for these payments some of the raised funds have been saved.Purpose and The Company convened the ninth meeting of the tenth Board of Directors on April 24 2026 and subsequently passed the "Proposal on Changing the Use of Certain Raised

Destination of Funds for Permanent Working Capital Replenishment" at the First Extraordinary General Meeting of Shareholders and the First Bondholders' Meeting of 2026 held on May

Unused raised 19 2026. It was agreed to terminate the raised-fund investment project—the "High-Grade High-Magnetic-Induction Non-Oriented Silicon Steel Project"—and to utilize the

Funds entire remaining balance of raised funds amounting to RMB 1014.79 million for permanent working capital replenishment.Issues or

Other

Situations in

the Use and There are no issues or other situations.Disclosure of

raised Funds

(3) The situation for raised funds change project

□Applicable √ Not applicable

During the reporting period the company did not have any changes in the fundraising project.

25Bengang Steel Plates Co. Ltd. Interim Report 2026

VII. Significant Assets and Equity Sold

1. Significant Assets Sold

□Applicable □Not applicable

There were no significant asset sold during the reporting period.

2. Substantial Equity Sold

□Applicable □Not applicable

VIII. Analysis of Major Subsidiaries and Affiliates

□Applicable □Not applicable

Details of Major Subsidiaries and Affiliates that Contribute More Than 10% to the Company's Net Profit

Unit：RMB

Company Compan Main Registered Total Net Operating Operating

Name y type business capital assets assets income profit Net Profit

Bengang

POSCO 25596

Cold Subsidia Processingand sales of 19200000 61405137 365546736 118245937. 100498447.Rolled ries 23244.00 08.35 9.27 06 72

Sheet Co. steel 31

Ltd.Acquisition and Disposal of Subsidiaries During the Reporting Period

□Applicable □Not applicable

IX. Structured Entities Controlled by the Company

□Applicable □Not applicable

X. Risks Faced by the Company and Countermeasures

1. Market and Operational Risks

In the first half of the year the steel industry as a whole showed an overall trend of weak demand loose supply falling prices

shrinking profits and intensified competition. The company's operations are facing multiple substantive pressures specifically

concentrated in the continued weakness of terminal demand and insufficient market growth; steel prices have fluctuated downwards

and profit margins have continued to be compressed; industry production capacity has been fully released and market competition

has been viciously involved.Countermeasures: In response to the severe downturn in the industry in the first half of the year the company made a comprehensive

shift actively expanded the market refined operations and comprehensively hedged market risks through a series of targeted

response measures such as stabilizing orders adjusting structure controlling risks improving services expanding channels and

ensuring cash flow.

2. Financial and Capital Risks

The company faces significant short-term debt repayment pressure; compounded by persistent operating losses and rising financial

26Bengang Steel Plates Co. Ltd. Interim Report 2026

costs its capital chain is strained operating cash flow lacks stability and the level of funds tied up in receivables and inventories

remains high. This ongoing capital tie-up further constricts available liquidity reduces capital turnover efficiency and places

significant strain on cash flow.Countermeasures: Implement a multi-pronged approach to mitigate risks associated with maturing debt establish a dedicated

mechanism for debt repayment and ensure capital security through a dual strategy: on one hand actively expand diversified

financing channels—such as securing bank credit lines and executing debt swaps—to build up repayment funds in advance; on the

other boost operating cash flow by cutting costs and increasing efficiency improving quality and profitability and revitalizing

existing assets. Strictly control the volume of funds tied up in receivables and inventories enforce rigorous cash flow management

set annual reduction targets for these items continuously revitalize existing capital and enhance capital turnover efficiency.

3. Environmental Protection and Regulatory Compliance Risks

Environmental inspections and ultra-low emission controls within the domestic steel industry are intensifying with regulatory

standards for pollutant emissions solid waste management and "dual control" of energy consumption (limiting both total energy

consumption and energy intensity) constantly rising. Policies regarding capacity replacement energy consumption controls

low-carbon transformation and industrial upgrading are continuously updated raising the threshold for industry entry.Countermeasures: The Company strictly implements rectification measures addressing issues identified during central environmental

inspections and has established robust standards for the routine operation inspection and maintenance of environmental protection

facilities to ensure pollutant emissions consistently meet compliance standards. The Company continues to advance energy

conservation carbon reduction and clean production upgrades; it reduces the emission intensity of major pollutants standardizes the

disposal processes for solid and hazardous waste and fully complies with all industry environmental regulations.XI. The Formulation and Implementation of Market Value Management System and

Valuation Enhancement Plan.Whether the company established a market value management System

□Yes □No

Whether the company disclosed its valuation enhancement plan

□Yes □No

During the reporting period the Company enhanced operational efficiency and profitability by focusing on its core business setting

multiple historical records through efficiency improvements boosting the technological content and added value of high-end

products accelerating the intelligent upgrading of production lines optimizing structure and addressing weaknesses to improve

quality and efficiency and expediting the acceptance process for ultra-low emissions as part of its green transition. The Company

actively pursued high-quality development goals and continued to advance major asset restructuring. Committed to serving investors

the Company expanded communication channels by adding a dedicated investor hotline and establishing a dedicated investor email

address; it achieved a 100% response rate on the "Hudong-e" (Interactive E) platform conducted eight investor communication

events hosted over 50 institutional site visits and held an annual earnings briefing thereby institutionalizing the practice of regular

earnings briefings. Adhering to the principles of "truthfulness accuracy completeness timeliness and fairness" in information

disclosure the Company diligently fulfilled its disclosure obligations completing 32 disclosure events and releasing 77

documents—including periodic reports and ESG reports—during the first half of the year. The Company's stock price has

successfully moved out of the long-standing "trading below net asset value" (breaking-net) range.XII. Implementation of the "Quality Return Dual Improvement" Action Plan

Whether the company has disclosed the announcement of the "Quality Return Dual Improvement" action plan

□Yes □No

27Bengang Steel Plates Co. Ltd. Interim Report 2026

IV. Corporate Governance Environment and Society

I. Changes in directors supervisors and senior management of the Company

√Applicable □Not applicable

Name Position Type of change Date Reason

Chairman and General

Huang Zuowei Leave office 2 Apr 2026 Job transfer

Manager

Leave office upon

Yuan Zhizhu Independent director 2 Apr 2026 Job transfer

completion of term

Yan Dongyu General Manager Appointment 2 Apr 2026 Job transfer

Appointment and

Liu Tiecheng Chief Accountant 2 Apr 2026 Job transfer

Removal

Wang Zhanwei Chairman Elected 24 Apr 2026 Job transfer

Yan Dongyu Director Elected 24 Apr 2026 Job transfer

Liu Ruping Independent director Elected 24 Apr 2026 Job transfer

II. Profit distribution and capital reserve conversion into share capital during the reporting period

□Applicable √ Not applicable

The company plans not to distribute cash dividends issue bonus shares or convert capital reserves into share capital during the

current period.III. Implementation of the company's equity incentive plan employee stock ownership plan or other

employee incentive measures

□Applicable √ Not applicable

The company had no equity incentive plan employee stock ownership plan or other employee incentive measures and their

implementation during the reporting period.IV. Status of Environmental Information Disclosure

Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the

environmental protection department

√ Yes □ No

Number of companies required by law to disclose environmental

9

information

Number Company name Link to environmental information disclosures

Benxi Iron & Steel Co. Ltd. Cold Rolling Mill (First Cold

1 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Rolling Area)

Benxi Iron & Steel Co. Ltd. Cold Rolling Mill (Third Cold

2 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Rolling Area)

3 Benxi Iron & Steel Co. Ltd. Steelmaking Plant https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

4 Benxi Steel Plate Co. Ltd. Ironmaking Sintering Branch https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

28Bengang Steel Plates Co. Ltd. Interim Report 2026

Benxi Steel Plate Co. Ltd. Ironmaking Plant Coking

5 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Branch

6 Special Steel Division Bengang Steel Plates Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Bengang Steel Plates Co. Ltd. — Energy Management and

7 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Control Center (Power Generation Area)

Bengang Steel Plates Co. Ltd. — Energy Management and

8 https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

Control Center (Energy Plant Area)

9 Bengang POSCO Cold Rolled Sheet Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

V. Social responsibility

The company actively selects and dispatches outstanding personnel to support rural revitalization efforts; currently two

employees are serving as resident village officials. Adhering to the requirements of consolidating poverty alleviation

achievements and advancing agricultural and rural modernization these officials coordinate industrial development

with livelihood support. They focus on strengthening village economies and increasing local incomes by fostering

industries and expanding revenue streams for both collective entities and individual residents while also implementing

robust routine monitoring to prevent a return to poverty. Upholding a pragmatic and incorruptible work style and

remaining committed to serving the people they rally collective efforts for rural development. The company has

formulated its 2026 assistance plan which includes a target of 4.6947 million yuan for "consumption-based assistance"

(purchasing goods from assisted areas) for the year—a commitment already incorporated into the company's

comprehensive budget management. Additionally in accordance with the Notice on Continuously Carrying Out

"Workwear Support for Xinjiang" Initiatives the company plans to procure 2000 sets of workwear from Xinjiang at an

estimated cost of 226 thousand yuan; these plans are scheduled for implementation in the second half of the year.

29Bengang Steel Plates Co. Ltd. Interim Report 2026

V. Important Events

I. Commitments that the actual controller shareholders related parties acquirers and the

company and other related parties have fulfilled during the reporting period and have not yet

fulfilled by the end of the reporting period

□Applicable □Not applicable

Commitment Type of Commitment Commitment

Commitments Contents Performance

party commitment time period

In order to maintain the

independence of Bengang

Plates Ansteel Group

promises as follows: 1.Ansteel Group guarantees to

keep separate from Bengang

Plates in terms of assets

personnel finance institutions

and business and strictly

abide by the relevant

Commitments regulations of the China

made in Securities Regulatory

acquisition Commission on the

reports or independence of listed

equity change companies and will not use

reports its controlling position to

interfere with the standardized

Commitments

operation of Bengang Plates

made in

acquisition Ansteel Other interfere with the businessGroup Co. Aug 20commitment decisions of Bengang Plates Long term In progressreports or

equity change Ltd.

2021

s or damage the legitimate

rights and interests of

reports

Bengang Plates and other

Commitments shareholders. Ansteel Group

made in and its controlled subsidiaries

acquisition guarantee not to illegally

reports or occupy the funds of Bengang

equity change Plates and its controlled

reports subsidiaries in any way. 2.The above commitments will

remain valid during the period

when Ansteel Group has

control over Bengang Plates.If Ansteel Group fails to

fulfill the above commitments

and causes losses to Bengang

Plates Ansteel Group will

bear the corresponding

compensation liability.

30Bengang Steel Plates Co. Ltd. Interim Report 2026

To avoid horizontal

competition Ansteel Group

undertakes as follows: (1)

With regard to the overlap of

some businesses between

Ansteel Group and Bengang

Plates after the completion of

this acquisition in accordance

with the requirements of

current laws regulations and

relevant policies Ansteel

Group will within 5 years

from the date of this letter of

commitment and strive to

achieve the same within a

shorter period of time in

accordance with the

requirements of relevant

securities regulatory

authorities and on the

premise of complying with the

laws regulations and relevant

regulatory rules applicable at

that time and in line with the

principle of benefiting the

development of Bengang

Plates and safeguarding the

Ansteel Other interests of shareholders

Group Co. Aug 20commitment especially the interests of Long term In progress

Ltd. 2021s small and medium-sized

shareholders steadily promote

the integration of related

businesses to resolve

horizontal competition by

comprehensively using a

variety of methods such as

asset restructuring business

adjustments and entrusted

management. The above

solutions include but are not

limited to: 1) Asset

restructuring: adopt different

methods permitted by relevant

laws and regulations such as

cash consideration or issuance

of shares to purchase assets

asset replacement asset

transfer or other feasible

restructuring methods

gradually sort out and

reorganize the assets of

Ansteel Group and Bengang

Plate with overlapping

businesses and eliminate the

overlap of some businesses; 2)

Business adjustment: sort out

the business boundaries and

31Bengang Steel Plates Co. Ltd. Interim Report 2026

make every effort to achieve

differentiated operations such

as achieving business

differentiation through asset

transactions business division

and other different methods

including but not limited to

differentiation in business

composition product grade

application field and customer

group; 3) Entrusted

management: by signing an

entrustment agreement one

party fully entrusts the

decision-making power and

management power involved

in the operation of some

relevant assets with

overlapping businesses to the

other party for unified

management; 4) Other

feasible solutions within the

scope permitted by laws

regulations and relevant

policies. The implementation

of the above solutions is

subject to the necessary

review procedures for listed

companies the approval

procedures of securities

regulatory authorities and

relevant competent authorities

in accordance with relevant

laws and regulations. (2)

Ansteel Group has not yet

formulated a specific

implementation plan and time

schedule for resolving the

issue of overlap between some

of the businesses of Ansteel

Group and Bengang Plates.Ansteel Group will promptly

fulfill its information

disclosure obligations in

accordance with the

requirements of relevant laws

and regulations after

formulating a specific and

feasible plan; (3) In addition

to the above circumstances

when Ansteel Group or other

subsidiaries obtain business

opportunities that may

compete with the business of

Bengang Plates Ansteel

Group will make every effort

to give Bengang Plates

32Bengang Steel Plates Co. Ltd. Interim Report 2026

priority development rights

and priority acquisition rights

for such opportunities ensure

that the price of the relevant

transaction is fair and

reasonable and will use the

business practices followed in

normal commercial

transactions with independent

third parties as the basis for

pricing; (4) Ansteel Group

guarantees to strictly abide by

laws regulations and the

provisions of the Articles of

Association of Bengang Plates

Co. Ltd. and its relevant

management systems and will

not use its position as an

indirect controlling

shareholder of Bengang Plates

to seek improper interests

thereby damaging the rights

and interests of other

shareholders of Bengang

Plates; (5) The above

commitments made by

Ansteel Group are valid

during the period when

Ansteel Group controls

Bengang Plates. If the rights

and interests of Bengang

Plates are damaged due to the

violation of the above

commitments Ansteel Group

is willing to bear the

corresponding liability for

damages.In order to standardize and

reduce the related-party

transactions between Ansteel

Group and listed companies

Ansteel Group has made the

following commitments: 1.Ansteel Group will ensure that

Bensteel Plates has

Ansteel independent business andOther

Group Co. complete assets and has Aug 20commitment Long term In progress

Ltd. independent and complete 2021s

production supply sales and

other supporting systems. 2.Ansteel Group and other

enterprises controlled by

Ansteel Group will not use

their control over Bensteel

Plates to seek priority in

transactions with Bensteel

Plates and its subsidiaries. 3.

33Bengang Steel Plates Co. Ltd. Interim Report 2026

Ansteel Group and other

enterprises controlled by

Ansteel Group will avoid and

reduce unnecessary

transactions with Bensteel

Plates and its subsidiaries. If

there are truly necessary and

unavoidable transactions

Ansteel Group and other

enterprises controlled by

Ansteel Group will sign

agreements with Bensteel

Plates and its subsidiaries in

accordance with the principles

of fairness equity and equal

compensation and perform

legal procedures. In

accordance with the

requirements of relevant laws

regulations and normative

documents and the provisions

of the Articles of Association

of Bensteel Plates Co. Ltd.they will perform information

disclosure obligations and

relevant internal

decision-making and approval

procedures in accordance with

the law and ensure that they

will not trade with Bensteel

Plates and its subsidiaries

under conditions that are

obviously unfair compared to

market prices and will not use

such transactions to engage in

any behavior that damages the

legitimate rights and interests

of Bensteel Plates and other

shareholders of Bensteel

Plates. 4. If the above

commitments are violated and

the legitimate rights and

interests of Bengang Plate are

damaged Ansteel Group will

compensate Bengang Plate for

the losses caused thereby in

accordance with the law.According to the relevant

regulations of the China

Company

Securities Regulatory

Commitment directors

Commission all directors and

made during senior Other

senior management of the May 22

initial public management/ commitment Long term In progress

Company have made the 2019

offering or Benxi Steel s

following commitments to the

refinancing Group Co.Company’s fulfillment of the

Ltd.diluted immediate return

measures: 1. I promise to

34Bengang Steel Plates Co. Ltd. Interim Report 2026

perform my duties faithfully

and diligently and safeguard

the legitimate rights and

interests of the Company and

all shareholders . 2. I promise

not to deliver benefits to other

units or individuals without

compensation or under unfair

conditions nor to use other

means to damage the

Company's interests. 3. I

promise to restrict the

position-related consumption

behavior of company directors

and senior management

personnel. 4. I promise not to

use the Company’s assets to

do investment and

consumption activities that are

not related to the performance

of my duties. 5. Within the

scope of my responsibilities

and authority I promise to

make every effort to promote

the company's board of

directors or the remuneration

system established by the

remuneration and appraisal

committee to be linked to the

implementation of the

company's compensation

measures and vote in favor of

the relevant proposals

reviewed by the company's

board of directors and general

meeting (If I have voting

rights). 6. If the company

intends to implement equity

incentives I promise to

within my own

responsibilities and

jurisdiction make every effort

to promote the Company’s

proposed equity incentive

exercise conditions to be

linked to the Company’s

implementation of the return

measures and to review the

Company’s board of directors

and shareholders’ general

meetings and vote in favor of

the relevant proposals

reviewed by the company's

board of directors and general

meeting (If I have voting

rights). 7. If the future

issuance of this commitment

35Bengang Steel Plates Co. Ltd. Interim Report 2026

and the implementation of the

Company’s public issuance of

convertible corporate bonds

are completed if the China

Securities Regulatory

Commission makes other new

regulatory provisions on the

measures for filling returns

and their commitments and

the above commitments

cannot meet the requirements

of the China Securities

Regulatory Commission

When other regulations are

stipulated a commitment will

be issued in accordance with

the latest regulations of the

China Securities Regulatory

Commission. The company's

controlling shareholder Benxi

Iron and Steel (Group) Co.Ltd. promised not to interfere

with the company's operation

and management activities

beyond its authority and not to

infringe on the Company's

interests.

1. Bengang International

trade Co. Ltd. and Bengang

Steel Plates Co. Ltd.'s sales

companies in the same region

guarantee personnel

independence business

independence financial

independence and asset

independence and guarantee

that they are not in the same

place of registration and never

work in the same office; 2. In

view of the fact that Bengang

Steel Plates Co. Ltd. has

Bengang recently completed the

Group Co. registration of foreign trade

Other

Ltd. and operators and considering

commitment that the qualification level July 242019 Long term In progress

Benxi Steel

s certification of raw material

Group Co. suppliers and customs import

Ltd. and export qualification level

certification still need to be

gradually improved it lacks

the actual conditions and

capabilities to independently

carry out import and export

business in the short term. In

order to ensure the normal

business development of

Bengang Steel Plates Co.Ltd. the Group agrees that

Bengang International Trade

Co. Ltd. will continue to act

as the agent for the main

import and export business of

36Bengang Steel Plates Co. Ltd. Interim Report 2026

Bengang Steel Plates Co. Ltd.within a period of no more

than 5 years from the date of

issuance of this commitment

until Bengang Steel Plates

Co. Ltd. believes that it can

independently carry out

import and export business

and during this period

Bengang International Trade

Co. Ltd. will provide

necessary support for

Bengang Steel Plates Co. Ltd.to establish and improve its

import and export business. In

addition Bengang

International Trade Co. Ltd.'s

sales companies are only

responsible for selling the

products of Beiying Steel &

Iron Group and never sell

third-party steel products. 3.The three sales companies of

the Group namely Shanghai

Bengang Steel Sales Co. Ltd.Shanghai Bengang Steel

Materials Co. Ltd. and

Guangzhou Bonded Zone

Bengang Sales Co. Ltd. are

no longer actually engaged in

any business activities. The

specific details are as follows:

(1) Shanghai Bengang Steel

Trading Co. Ltd. filed for

bankruptcy in 2014. The

People's Court of Changning

District Shanghai issued an

announcement to appoint

Grandall Law Firm

(Shanghai) as the bankruptcy

administrator. After

communicating with the

bankruptcy administrator the

relevant procedures for the

cancellation of Shanghai

Bengang Steel Sales Co. Ltd.will be handled immediately

after the completion of the

aforementioned bankruptcy

liquidation procedures. (2)

Shanghai Bengang Steel

Materials Co. Ltd. is a

holding subsidiary of

Shanghai Bengang Steel

Trading Co. Ltd. and was

cancelled in November 2020.

(3) Guangzhou Bonded Zone

Bengang Sales Co. Ltd. was

cancelled in July 2022.Benxi Steel Group Co. Ltd.Bengang

and Bengang Group Co. Ltd.Group Co.Other (hereinafter collectively

Ltd. and

commitment referred to as the "Group") as July 242019 Long term In progress

Benxi Steel

s the direct and indirect

Group Co.controlling shareholders of

Ltd.Bengang Steel Plates Co. Ltd.

37Bengang Steel Plates Co. Ltd. Interim Report 2026

(hereinafter referred to as

"Bengang Plate") hereby

make the following

commitments to avoid

horizontal competition: 1.During the period when the

Group serves as the

controlling shareholder of

Bengang Plate the Group and

other enterprises controlled by

the Group except Bengang

Plate will no longer produce

or develop any products that

compete or may compete with

the products produced by

Bengang Plate and its

subsidiaries at home and

abroad will not directly or

indirectly operate any

business that competes or may

compete with the business

operated by Bengang Plate

and its subsidiaries and will

not participate in the

investment in any other

enterprises that compete or

may compete with the

products produced or

businesses operated by

Bengang Plate and its

subsidiaries. 2. If Bengang

Plates and its subsidiaries

further expand their business

scope the Group and other

enterprises controlled by the

Group will not compete with

the expanded business of

Bengang Plates and its

subsidiaries; if there is a

possibility of competition

with the expanded business of

Bengang Plates and its

subsidiaries they will

withdraw from the

competition with Bengang

Plates in the following ways:

(1) stop the business that

competes or may compete

with Bengang Plates and its

subsidiaries; (2) incorporate

the competing business into

Bengang Plates and its

subsidiaries in a legal and

compliant manner; (3) transfer

the competing business to an

unrelated third party. 3. If the

Group has any business

38Bengang Steel Plates Co. Ltd. Interim Report 2026

opportunity to engage in or

participate in activities that

may compete with the

business operations of

Bengang Plates the Group

shall immediately notify

Bengang Plates of the above

business opportunity. If

Bengang Plates responds

affirmatively within a

reasonable period specified in

the notification that it is

willing to utilize the business

opportunity the Group will

try its best to provide the

business opportunity to

Bengang Plates on terms no

less favorable than those

provided to any independent

third party. 4. If the above

commitments are violated the

Group is willing to bear all the

responsibilities arising

therefrom and fully

compensate or indemnify

Bengang Plates for all direct

or indirect losses caused

thereby. 5. This letter of

commitment shall remain

valid and cannot be changed

or revoked during the period

when the Group serves as the

controlling shareholder of

Bengang Plates.Benxi Steel Group Co. Ltd.and Bengang Group Co. Ltd.(hereinafter collectively

referred to as "the Group") as

the direct and indirect

controlling shareholders of

Bengang Steel Plates Co. Ltd.(hereinafter referred to as

"Bengang Plate") hereby

promise to regulate the related

Bengang transactions between the

Group Co. Group and Bengang Plate: 1.Other

Ltd. and The Group will fully respect

commitment

Benxi Steel the independent legal person

July 242019 Long term In progress

s status of Bengang Plate

Group Co. guarantee the independent

Ltd. operation and independent

decision-making of Bengang

Plate ensure the business

independence asset integrity

personnel independence and

financial independence of

Bengang Plate so as to avoid

and reduce unnecessary

related transactions; the

Group will strictly control the

related transactions between

39Bengang Steel Plates Co. Ltd. Interim Report 2026

Bengang Plate and its

subsidiaries. 2. The Group and

other companies controlled by

it promise not to occupy or

misappropriate the funds of

Bengang Plate and its

subsidiaries by borrowing

repaying debts advancing

funds or other means nor

require Bengang Plate and its

subsidiaries to provide illegal

guarantees for the Group and

other companies controlled by

it. 3. The Group and other

companies controlled by it

will minimize related

transactions with Bengang

Plate. When conducting

related transactions that are

truly necessary and

unavoidable the

decision-making authority

decision-making procedures

and avoidance system

stipulated in the Articles of

Association of Bengang Plates

and the decision-making

system for related transactions

shall be strictly implemented

the role of the Supervisory

Board and independent

directors shall be fully

utilized and the information

disclosure obligations shall be

conscientiously fulfilled to

ensure that transactions are

conducted in accordance with

the principles of openness

fairness and equity in market

transactions and normal

commercial terms. The Group

and other companies

controlled by it will not

require or accept Bengang

Plates to provide more

favorable conditions than any

third party in any fair market

transaction and protect the

interests of other shareholders

of Bengang Plates and

Bengang Plates from being

harmed. 4. The Group

guarantees that the above

commitments will remain

valid and irrevocable during

the period when the Group is

listed on the domestic stock

exchange and the Group is its

direct and indirect controlling

shareholder. If any violation

of the above commitments

occurs the Group shall bear

all losses caused to Bengang

Plates.Whether Yes

Commitment

40Bengang Steel Plates Co. Ltd. Interim Report 2026

fulfilled on

time or not

II. Non-operating capital occupation of listed companies by controlling shareholders and

other related parties

□Applicable□Not applicable

During the reporting period there was no non-operating capital occupation of the listed company by the controlling shareholder or

other related parties.III. Illegal external guarantees

□Applicable□Not applicable

The company did not provide any illegal external guarantees during the reporting period.IV. Appointment and dismissal of accounting firms

Whether the semi-annual financial report has been audited

□Yes□No

The company's semi-annual report is unaudited.V. Board of Directors' Explanation on the Non-Standard Audit Report Issued by the

Accounting Firm for the Reporting Period

□Applicable□Not applicable

VI. Board of Directors' Explanation on Matters Related to the Non-Standard Audit Report of

the Previous Year

□Applicable□Not applicable

VII. Bankruptcy and reorganization related matters

□Applicable□Not applicable

The company did not have any bankruptcy reorganization related matters during the reporting period.VIII. Litigation and arbitration matters

Major Litigation and Arbitration Matters

□Applicable□Not applicable

During the reporting period the Company had no major litigation or arbitration matters.Other litigation matters

?Applicable□Not applicable

41Bengang Steel Plates Co. Ltd. Interim Report 2026

Basic Amount Whether Results and Execution of

Progress of

information involved (in estimated impact of litigation Date of Disclosure

litigation

of litigation 10 thousand liabilities are litigation (arbitration) disclosure index

(arbitration)

(arbitration) yuan) formed (arbitration) judgment

Summary of

matters

where the

company

Handle

does not

according to

meet the 754.56 None Under review None

legal

disclosure

provisions

standards for

major

litigation

(arbitration)

IX. Penalties and Rectification

□Applicable□ Not applicable

The Company was not subject to any penalties or rectification requirements during the reporting period.X. Integrity of the company and its controlling shareholders and actual controllers

□Applicable□Not applicable

42Bengang Steel Plates Co. Ltd. Interim Report 2026

XI. Major Related-Party Transactions

1. Related-party transactions related to daily operations

?Applicable□Not applicable

Amount ProportiPricing Whether Theof on of Approved the market

Relations Transaction Related party

principles Related Affiliated the transactio approve Settlement price of

Related party hip s type transaction

of related party Transactio amount n amount d quota method of Disclosure Disclosu

content party transaction n (ten of (ten is related party

similar date re index

transactio price transactio

ns thousand

similar thousand transactions

Yuan) transacti yuan)

exceede ns

ons d available

Belongs

Angang Group to Purchase of Related-Part

International Angang Goods/Acce Procurement Market-or y 11016.22 0.47% 16728 26/12/2025 2025-071

Economic & Group ptance of of Major Raw iented Agreement According to

Trade Co. Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

to Purchase of Related-Part

Ansteel Group Angang Goods/Acce Procurement Market-or y 7612.15 0.33% 4130 26/12/2025 2025-071

Mining Co. Group ptance of of Major Raw iented Agreement According to

LTD Co. Ltd. Services Materials principles Price Yes the agreement Yes

Belongs

Anshan Iron to Purchase of Related-Part

and Steel Angang Goods/Acce Procurement Market-or y 19854.62 0.85% 20190 26/12/2025 2025-071

Group Co. Group ptance of of Major Raw iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Benxi Beiying to Purchase of Related-Part

Iron and Steel Bengang Goods/Acce Procurement Market-or y 587475.70 25.09% 1487640 26/12/2025 2025-071

(Group) Co. Group ptance of of Major Raw iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Purchase of Related-Part

Machinery Same Goods/Acce Procurement Market-or y 375.89 0.02% 12970.90 26/12/2025 2025-071

Manufacturing parent ptance of of Major Raw iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

43Bengang Steel Plates Co. Ltd. Interim Report 2026

Proporti

Pricing Amount on of Approved Whether The

Related party principles Related

of

Affiliated the transactio

the Settlement market

Related party Relations Transaction transaction of related party Transactio amount n amount

approve method of price of Disclosure Disclosu

hip s type content party transaction of (ten

d quota related party similar

transactio price n (ten similar thousand is transactions transactio

date re index

ns thousand transacti yuan) exceede nsYuan) ons d available

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Procurement Market-or y 73.59 0.00% 629.3 26/12/2025 2025-071

Construction parent ptance of of Major Raw iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Procurement Market-or y 280307.60 11.97% 740524.05 26/12/2025 2025-071

Mining Co. parent ptance of of Major Raw iented Agreement According to

Ltd. company Services Materials principles Price No the agreement Yes

Benxi Steel

Group Purchase of Related-Part

Equipment Same Goods/Acce Procurement Market-or y 102.78 0.00% 998.2 26/12/2025 2025-071

Engineering parent ptance of of Major Raw iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Benxi Steel

Group Purchase of Related-Part

Industrial Same Goods/Acce Procurement Market-or y 23855 1.02% 67546.76 26/12/2025 2025-071

Development parent ptance of of Major Raw iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Purchase of Related-Part

Benxi Iron and Goods/Acce Procurement Market-or y 28.07 0.00% 439 26/12/2025 2025-071

Steel (Group) Parent ptance of of Major Raw iented Agreement According to

Co. LTD company Services Materials principles Price No the agreement Yes

Belongs

to Purchase of Related-Part

Lingyuan Iron Angang Goods/Acce Procurement Market-or y 1422.81 0.06% 21000 26/12/2025 2025-071

& Steel Group Group ptance of of Major Raw iented Agreement According to

Co. Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

to Purchase of Related-Part

Pangang Angang Goods/Acce Procurement Market-or y 479.53 0.02% 1000 26/12/2025 2025-071

Group Co. Group ptance of of Major Raw iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

44Bengang Steel Plates Co. Ltd. Interim Report 2026

Proporti

Pricing Amount on of Approved Whether Theof the market

Relations Transaction Related party

principles Related the transactio Settlement

Related party transaction of related party

Affiliated

Transactio amount n amount

approve

d quota method of

price of

similar Disclosure Disclosuhip s type content party transactiontransactio price n (ten

of (ten is related party date re index

thousand similar thousand transactions

transactio

ns Yuan) transacti yuan)

exceede ns

ons d available

Belongs

to Purchase of Related-Part

Angang Steel Angang Goods/Acce Procurement Market-or y 279.59 0.01% 600 26/12/2025 2025-071

Company Group ptance of of Auxiliary iented Agreement According to

Limited Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Angang Group to Purchase of Related-Part

Engineering Angang Goods/Acce Procurement Market-or y 165.72 0.01% 437 26/12/2025 2025-071

Technology Group ptance of of Auxiliary iented Agreement According to

Co. Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Angang Group to Purchase of Related-Part

International Angang Goods/Acce Procurement Market-or y 7596.40 0.32% 16000 26/12/2025 2025-071

Economic & Group ptance of of Auxiliary iented Agreement According to

Trade Co. Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Angang Digital Belongs

Intelligence to Purchase of Related-Part

Technology Angang Goods/Acce Procurement Market-or y 719.26 0.03% 5576 26/12/2025 2025-071

(Liaoning) Co. Group ptance of of Auxiliary iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Anshan Iron to Purchase of Related-Part

and Steel Angang Goods/Acce Procurement Market-or y 1465.67 0.06% 7607.40 26/12/2025 2025-071

Group Co. Group ptance of of Auxiliary iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Benxi Beiying to Purchase of Related-Part

Iron and Steel Bengang Goods/Acce Procurement Market-or y 56.31 0.00% 1680 26/12/2025 2025-071

(Group) Co. Group ptance of of Auxiliary iented Agreement According to

Ltd. Co. Ltd. Services Materials principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Purchase of Related-Part

Machinery Same Goods/Acce Procurement Market-or y 15478.48 0.66% 37708 26/12/2025 2025-071

Manufacturing parent ptance of of Auxiliary iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

45Bengang Steel Plates Co. Ltd. Interim Report 2026

Pricing Amount

Proporti

on of Approved Whether The

Related party principles Related

of the transactio the Settlement market

Related party Relations Transaction of related party

Affiliated approve price of

hip s type transaction party transaction Transactio

amount n amount method of Disclosure Disclosu

content n (ten of (ten

d quota similar

is related party transactio date re indextransactio price

ns thousand

similar thousand transactions

Yuan) transacti yuan)

exceede ns

ons d available

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Procurement Market-or y 5253.78 0.22% 8316.17 26/12/2025 2025-071

Construction parent ptance of of Auxiliary iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Procurement Market-or y 17616.64 0.75% 55982.30 26/12/2025 2025-071

Mining Co. parent ptance of of Auxiliary iented Agreement According to

Ltd. company Services Materials principles Price No the agreement Yes

Benxi Steel

(Group) Purchase of Related-Part

Equipment Same Goods/Acce Procurement Market-or y 1086.65 0.05% 8683 26/12/2025 2025-071

Engineering parent ptance of of Auxiliary iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Benxi Steel

Group Purchase of Related-Part

Industrial Same Goods/Acce Procurement Market-or y 215.51 0.01% 500 26/12/2025 2025-071

Development parent ptance of of Auxiliary iented Agreement According to

Co. Ltd. company Services Materials principles Price No the agreement Yes

Purchase of Related-Part

Benxi Iron and Goods/Acce Procurement Market-or y 1419.34 0.06% 3774 26/12/2025 2025-071

Steel (Group) Parent ptance of of Auxiliary iented Agreement According to

Co. LTD company Services Materials principles Price No the agreement Yes

Belongs

to Purchase of Related-Part

Other Angang Goods/Acce Procurement Market-or y 16.81 0.00% 40 26/12/2025 2025-071

Subsidiaries of Group ptance of of Auxiliary iented Agreement According to

Ansteel Group Co. Ltd. Services Materials principles Price No the agreement Yes

Belongs

Anshan Iron to Purchase of Related-Part

and Steel Angang Goods/Acce Market-or y 5581.23 0.24% 540.26 26/12/2025 2025-071

Group Co. Group ptance of Procure steel iented Agreement According to

Ltd. Co. Ltd. Services products principles Price Yes the agreement Yes

46Bengang Steel Plates Co. Ltd. Interim Report 2026

Amount ProportiPricing on of Approved Whether The

Related party principles Related

of

Affiliated the transactio

the Settlement market

Related party Relations Transaction

approve price of

hip s type transaction

of related party amount n amount

party transaction Transactio of (ten d quota

method of

related party similar

Disclosure Disclosu

content date re indextransactio price n (ten is transactio

ns thousand

similar thousand

transacti yuan) exceede

transactions ns

Yuan) ons d available

Belongs

Benxi Beiying to Purchase of Related-Part

Iron and Steel Bengang Goods/Acce Market-or y 2326.17 0.10% 161595.12 26/12/2025 2025-071

(Group) Co. Group ptance of Procure steel iented Agreement According to

Ltd. Co. Ltd. Services products principles Price No the agreement Yes

Belongs

DeLin Land to Purchase of Related-Part

Port Supply Angang Goods/Acce Market-or y 53.07 0.00% 0 26/12/2025 2025-071

Chain Services Group ptance of Procure steel iented Agreement According to

Co. Ltd. Co. Ltd. Services products principles Price Yes the agreement Yes

Belongs

Benxi Beiying to Purchase of Related-Part

Iron and Steel Bengang Goods/Acce Procurement Market-or y 35873.86 1.53% 89451.54 26/12/2025 2025-071

(Group) Co. Group ptance of of Energy and iented Agreement According to

Ltd. Co. Ltd. Services Utilities principles Price No the agreement Yes

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Procurement Market-or y 833.33 0.04% 180 26/12/2025 2025-071

Mining Co. parent ptance of of Energy and iented Agreement According to

Ltd. company Services Utilities principles Price Yes the agreement Yes

Belongs

Angang Group to Purchase of Related-Part

Engineering Angang Goods/Acce Receive Market-or y 488.86 0.02% 7200 26/12/2025 2025-071

Technology Group ptance of Supportive iented Agreement According to

Co. Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Belongs

Angang Group to Purchase of Related-Part

International Angang Goods/Acce Receive Market-or y 3556.44 0.15% 20120.70 26/12/2025 2025-071

Economic & Group ptance of Supportive iented Agreement According to

Trade Co. Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Angang Group Belongs

Zhongyuan to Purchase of Related-Part

Industrial Angang Goods/Acce Receive Market-or y 5413.77 0.23% 14706.29 26/12/2025 2025-071

Development Group ptance of Supportive iented Agreement According to

Co. Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

47Bengang Steel Plates Co. Ltd. Interim Report 2026

Amount ProportiPricing of on of Approved

Whether The

principles Related the market

Relations Transaction Related party of related party Affiliated

the transactio approve Settlement price of

Related party hip s type transaction Transactio

amount n amount d quota method of similar Disclosure Disclosu

content party transactiontransactio price n (ten

of (ten is related party transactio date re index

ns thousand

similar thousand transactions

Yuan) transacti yuan)

exceede ns

ons d available

Angang Digital Belongs

Intelligence to Purchase of Related-Part

Technology Angang Goods/Acce Receive Market-or y 8623.59 0.37% 11481.60 26/12/2025 2025-071

(Liaoning) Co. Group ptance of Supportive iented Agreement According to

Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Belongs

Anshan Iron to Purchase of Related-Part

and Steel Angang Goods/Acce Receive Market-or y 651.96 0.03% 2065.64 26/12/2025 2025-071

Group Co. Group ptance of Supportive iented Agreement According to

Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Sharehol

ders of Purchase of Related-Part

Bengang the Goods/Acce Receive Market-or y 13406.33 0.57% 33084.33 26/12/2025 2025-071

Group Co. parent ptance of Supportive iented Agreement According to

Ltd. company Services Services principles Price No the agreement Yes

Belongs

Benxi Beiying to Purchase of Related-Part

Iron and Steel Bengang Goods/Acce Receive Market-or y 5968.32 0.25% 12030 26/12/2025 2025-071

(Group) Co. Group ptance of Supportive iented Agreement According to

Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Belongs

Benxi Steel to Purchase of Related-Part

and Iron Angang Goods/Acce Receive Market-or y 27119.97 1.16% 57231.22 26/12/2025 2025-071

(Group)Tengda Group ptance of Supportive iented Agreement According to

Co. Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Purchase of Related-Part

Machinery Same Goods/Acce Receive Market-or y 5614.41 0.24% 12269.62 26/12/2025 2025-071

Manufacturing parent ptance of Supportive iented Agreement According to

Co. Ltd. company Services Services principles Price No the agreement Yes

Benxi Iron and Purchase of Related-Part

Steel (Group) Same Goods/Acce Receive Market-or y 9876.89 0.42% 34366.69 26/12/2025 2025-071

Construction parent ptance of Supportive iented Agreement According to

Co. Ltd. company Services Services principles Price No the agreement Yes

48Bengang Steel Plates Co. Ltd. Interim Report 2026

Amount ProportiPricing Whether The

principles Related of

on of Approved

the transactio the Settlement marketRelated party Affiliated approve price of

Related party Relations Transaction transaction of related party Transactio amount n amount d quota method of similar Disclosure Disclosuhip s type content party transaction of (ten related party date re indextransactio price n (tenthousand similar thousand

is

exceede transactions

transactio

ns Yuan) transacti yuan)

ns

ons d available

Benxi Steel

(Group) Purchase of Related-Part

Equipment Same Goods/Acce Receive Market-or y 31998.71 1.37% 70229.35 26/12/2025 2025-071

Engineering parent ptance of Supportive iented Agreement According to

Co. Ltd. company Services Services principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Purchase of Related-Part

Industrial Same Goods/Acce Receive Market-or y 217.98 0.01% 1219.24 26/12/2025 2025-071

Development parent ptance of Supportive iented Agreement According to

Co. Ltd. company Services Services principles Price No the agreement Yes

Purchase of Related-Part

Benxi Iron and Goods/Acce Receive Market-or y 1073.51 0.05% 17195.85 26/12/2025 2025-071

Steel (Group) Parent ptance of Supportive iented Agreement According to

Co. LTD company Services Services principles Price No the agreement Yes

Belongs

DeLin Land to Purchase of Related-Part

Port Supply Angang Goods/Acce Receive Market-or y 523 0.02% 1084.70 26/12/2025 2025-071

Chain Services Group ptance of Supportive iented Agreement According to

Co. Ltd. Co. Ltd. Services Services principles Price No the agreement Yes

Belongs

to Purchase of Related-Part

Other Angang Goods/Acce Receive Market-or y 1597.82 0.07% 1761.86 26/12/2025 2025-071

Subsidiaries of Group ptance of Supportive iented Agreement According to

Ansteel Group Co. Ltd. Services Services principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Angang Steel Angang Goods/Rend Market-or y 216.48 0.01% 800 26/12/2025 2025-071

Company Group ering of iented Agreement According to

Limited Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Angang Metal Angang Goods/Rend Market-or y 12851.78 0.58% 61946.90 26/12/2025 2025-071

Structure Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

49Bengang Steel Plates Co. Ltd. Interim Report 2026

Pricing Amount

Proporti

on of Approved Whether The

principles Related of the market

Relations Transaction Related party of related party Affiliated

the transactio approve Settlement price of

Related party transaction Transactio amount n amount d quota method of similar Disclosure Disclosuhip s type content party transactiontransactio price n (ten

of (ten related party date re index

thousand similar thousand

is transactions transactio

ns Yuan) transacti yuan)

exceede ns

ons d available

Belongs

Angang Group to Sale of Related-Part

International Angang Goods/Rend Market-or y 8103.82 0.36% 45000 26/12/2025 2025-071

Economic & Group ering of iented Agreement According to

Trade Co. Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Angang Group Belongs

Zhongyuan to Sale of Related-Part

Industrial Angang Goods/Rend Market-or y 3228.68 0.14% 6705.09 26/12/2025 2025-071

Development Group ering of iented Agreement According to

Co. Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Angang Digital Belongs

Intelligence to Sale of Related-Part

Technology Angang Goods/Rend Market-or y 15.32 0.00% 50.2 26/12/2025 2025-071

(Liaoning) Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Angang Angang Goods/Rend Market-or y 98.93 0.00% 2800 26/12/2025 2025-071

Resources Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

Anshan Iron to Sale of Related-Part

and Steel Angang Goods/Rend Market-or y 17057.48 0.76% 87713.05 26/12/2025 2025-071

Group Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Sharehol

ders of Sale of Related-Part

Bengang the Goods/Rend Market-or y 27906.92 1.25% 43.56 26/12/2025 2025-071

Group Co. parent ering of iented Agreement According to

Ltd. company Services Sale of Goods principles Price Yes the agreement Yes

Belongs

Benxi Beiying to Sale of Related-Part

Iron and Steel Bengang Goods/Rend Market-or y 23267.69 1.04% 182132.55 26/12/2025 2025-071

(Group) Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

50Bengang Steel Plates Co. Ltd. Interim Report 2026

Pricing Amount

Proporti

of on of Approved

Whether The

Related party principles Related Affiliated the transactio

the Settlement market

Related party Relations Transaction transaction of related party Transactio amount n amount

approve

d quota method of

price of Disclosure Disclosu

hip s type content party transaction n (ten of (ten is related party

similar

transactio price similar thousand transactions transactio

date re index

ns thousandYuan) transacti yuan)

exceede ns

ons d available

Benxi Iron &

Steel (Group) Belongs

Construction to Sale of Related-Part

Advanced Angang Goods/Rend Market-or y 3.54 0.00% 20 26/12/2025 2025-071

Decoration Group ering of iented Agreement According to

Co. Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Sale of Related-Part

Machinery Same Goods/Rend Market-or y 2130.07 0.10% 8073.55 26/12/2025 2025-071

Manufacturing parent ering of iented Agreement According to

Co. Ltd. company Services Sale of Goods principles Price No the agreement Yes

Benxi Iron and Sale of Related-Part

Steel (Group) Same Goods/Rend Market-or y 51.3 0.00% 341.66 26/12/2025 2025-071

Construction parent ering of iented Agreement According to

Co. Ltd. company Services Sale of Goods principles Price No the agreement Yes

Benxi Iron and Sale of Related-Part

Steel (Group) Same Goods/Rend Market-or y 15004.33 0.67% 38556.33 26/12/2025 2025-071

Mining Co. parent ering of iented Agreement According to

Ltd. company Services Sale of Goods principles Price No the agreement Yes

Benxi Steel

(Group) Sale of Related-Part

Equipment Same Goods/Rend Market-or y 92.95 0.00% 240.02 26/12/2025 2025-071

Engineering parent ering of iented Agreement According to

Co. Ltd. company Services Sale of Goods principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Sale of Related-Part

Industrial Same Goods/Rend Market-or y 5301.51 0.24% 8692.50 26/12/2025 2025-071

Development parent ering of iented Agreement According to

Co. Ltd. company Services Sale of Goods principles Price No the agreement Yes

Sale of Related-Part

Benxi Iron and Goods/Rend Market-or y

Steel (Group) Parent ering of iented Agreement 2363.51 0.11% 7205.13 According to 26/12/2025 2025-071

Co. LTD company Services Sale of Goods principles Price No the agreement Yes

51Bengang Steel Plates Co. Ltd. Interim Report 2026

Proporti

Pricing Amountof on of Approved

Whether The

Related party principles Related Affiliated the transactio

the Settlement market

Related party Relations Transaction transaction of related party Transactio amount n amount

approve method of price of Disclosure Disclosu

hip s type content party transaction of (ten

d quota

n (ten is related party

similar

transactio price similar thousand transactions transactio

date re index

ns thousandYuan) transacti yuan)

exceede ns

ons d available

Belongs

DeLin Land to Sale of Related-Part

Port Supply Angang Goods/Rend Market-or y 143961.41 6.45% 587985.65 26/12/2025 2025-071

Chain Services Group ering of iented Agreement According to

Co. Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Lingyuan Iron Angang Goods/Rend Market-or y 0.02 0.00% 2834.70 26/12/2025 2025-071

& Steel Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Pangang Angang Goods/Rend Market-or y 1131.95 0.05% 2450 26/12/2025 2025-071

Group Co. Group ering of iented Agreement According to

Ltd. Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Other Angang Goods/Rend Market-or y 1.5 0.00% 3.09 26/12/2025 2025-071

Subsidiaries of Group ering of iented Agreement According to

Ansteel Group Co. Ltd. Services Sale of Goods principles Price No the agreement Yes

Belongs

Anshan Iron to Sale of Related-Part

and Steel Angang Goods/Rend Provide Market-or y 1.37 0.00% 5000 26/12/2025 2025-071

Group Co. Group ering of support iented Agreement According to

Ltd. Co. Ltd. Services services principles Price No the agreement Yes

Sharehol

ders of Sale of Related-Part

Bengang the Goods/Rend Provide Market-or y 53.01 0.00% 500 26/12/2025 2025-071

Group Co. parent ering of support iented Agreement According to

Ltd. company Services services principles Price No the agreement Yes

Benxi Iron and

Steel (Group) Sale of Related-Part

Machinery Same Goods/Rend Provide Market-or y 37.3 0.00% 400.22 26/12/2025 2025-071

Manufacturing parent ering of support iented Agreement According to

Co. Ltd. company Services services principles Price No the agreement Yes

52Bengang Steel Plates Co. Ltd. Interim Report 2026

Proporti

Pricing Amount on of Approved Whether The

principles Related of the transactio the Settlement market

Related party Relations Transaction

Related party of related party Affiliatedtransaction Transactio amount n amount

approve

d quota method of

price of

hip s type party transaction of (ten related party similar

Disclosure Disclosu

content n (ten is transactio date re indextransactio price

ns thousand

similar thousand exceede transactions ns

Yuan) transacti yuan)ons d available

Benxi Iron and Sale of Related-Part

Steel (Group) Same Goods/Rend Provide Market-or y 0.11 0.00% 500 26/12/2025 2025-071

Construction parent ering of support iented Agreement According to

Co. Ltd. company Services services principles Price No the agreement Yes

Benxi Iron and Sale of Related-Part

Steel (Group) Same Goods/Rend Provide Market-or y 489.85 0.02% 1100 26/12/2025 2025-071

Mining Co. parent ering of support iented Agreement According to

Ltd. company Services services principles Price No the agreement Yes

Benxi Steel

(Group) Sale of Related-Part

Equipment Same Goods/Rend Provide Market-or y 1.57 0.00% 500 26/12/2025 2025-071

Engineering parent ering of support iented Agreement According to

Co. Ltd. company Services services principles Price No the agreement Yes

Sale of Related-Part

Benxi Iron and Goods/Rend Provide Market-or y 59.22 0.00% 500 26/12/2025 2025-071

Steel (Group) Parent ering of support iented Agreement According to

Co. LTD company Services services principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Lingyuan Iron Angang Goods/Rend Provide Market-or y 1907.80 0.09% 3900.60 26/12/2025 2025-071

& Steel Co. Group ering of support iented Agreement According to

Ltd. Co. Ltd. Services services principles Price No the agreement Yes

Belongs

to Sale of Related-Part

Other Angang Goods/Rend Provide Market-or y 11.72 0.00% 99.18 26/12/2025 2025-071

subsidiaries of Group ering of support iented Agreement According to

Ansteel Group Co. Ltd. Services services principles Price No the agreement Yes

Total -- -- 1410124.48 --

4124608.0

7----------

Details of any sales return of a large amount Not applicable

Actual performance of the estimated total amount of daily related transactions to occur in

the current period during the reporting period by category (if any) Not applicable

53Bengang Steel Plates Co. Ltd. Interim Report 2026

Pricing Amount

Proporti

of on of Approved

Whether The

Related party principles Related Affiliated the transactio

the

approve Settlement

market

Related party Relations Transaction of related party amount n amount method of

price of

transaction Disclosure Disclosuhip s type content party transaction

Transactio of (ten d quotan (ten is related party

similar date re index

transactio price similar thousand transactions transactio

ns thousandYuan) transacti yuan)

exceede ns

ons d available

Reason for any significant difference between the transaction price and the Market price

for reference (if applicable) Not applicable

54Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Related party transactions relevant to asset acquisition or sold

□ Applicable √ Not applicable

During the reporting period the Company did not engage in any related-party transactions involving the acquisition or disposal of

assets or equity interests.

3. Related party transactions relevant to joint investments

□ Applicable √ Not applicable

During the reporting period the Company did not engage in any related-party transactions involving joint external

investments.

4. Credits and liabilities with related parties

□ Applicable √ Not applicable

There were no related credits and debts during the reporting period.

5. Transactions with related financial companies

√ Applicable □ Not applicable

Deposit business

Current period

Maximum Total

Deposit Beginning Total deposit Ending

daily deposit withdrawal

Related party Relationship interest rate balance (10 amount of balance (10

limit (ten amount of

range thousand) the current

thousand) this period

thousand)

period (10

(10

thousand)

thousand)

Angang

Group Also belong 0.65%-1.45

45000019474.648351578.238353046.8618006.02

Finance Co. to Ansteel %

Ltd.Loans

Current period

Total

Credit Limit Credit Beginning Total loan repayment Ending

Related party Relationship (ten interest rate balance (10 amount for amount for balance (10

thousand) range thousand) the current this period thousand)

period (10

(10

thousand)

thousand)

Angang

Group Also belong

3000002.11%-2.29%01000000100000

Finance Co. to Ansteel

Ltd.Credit or other financial servicesTotal amount（10 Actual amount（10Related party Relationship Business type thousand） thousand）

Angang Group Finance Also belong to Ansteel Other financial services 500000 92652.44

55Bengang Steel Plates Co. Ltd. Interim Report 2026

Co. Ltd.

6. Transactions between the company's holding financial company and related parties

□ Applicable √ Not applicable

There were no deposits loans credit or other financial businesses between the financial company controlled by the

company and its related parties.

7. Other significant related transactions

□ Applicable √ Not applicable

There were no other significant related transactions during the reporting period.XII. Significant Contracts and Their Performance

1. Trusteeship Contracting and Lease Arrangements

(1) Trusteeship

? Applicable ? Not Applicable

During the reporting period the Company had no trusteeship arrangements.

(2) Contracting

? Applicable ? Not Applicable

During the reporting period the Company had no contracting arrangements.

(3) Leasing

? Applicable ? Not Applicable

Details of leasing

56Bengang Steel Plates Co. Ltd. Interim Report 2026

The Company as Lessee

Current period Previous period amount

Variable Variable

Rental costs lease Rental costs lease

for short-term payments Increase for short-term payments

Leased Asset leases and not Interest leases and not InterestLessor Name Type leases of included Rent paid expense on

in

right-of- leases of included expense on

Increase in

low-value in the lease use low-value in the

Rent paid lease right-of-use

assets with measure liabilities assets assets with measurem liabilities

assets

simplified ment of simplified ent of

treatment lease treatment lease

liabilities liabilities

2300 Hot

Benxi Steel

rolling

& Iron

product line 8049080.52 3160255.47 8049080.52 3348358.04

(Group) Co.related real

Ltd.estate

Land use

right

Benxi Steel 7669068.17

& Iron square meter 27638772.06 18142807.59 27638772.06 18502019.80

(Group) Co. Land use

Ltd. right

42920.00

square meter

Benxi 1780 Hot 6912486.06 2433851.18 7175818.86 2578717.23

Beiying Steel rolling

57Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period Previous period amount

Variable Variable

Rental costs lease Rental costs lease

for short-term payments

leases and not Interest Increase

for short-term payments

Leased Asset in leases and not InterestLessor Name Type leases of included Rent paid expense on right-of- leases of included expense on

Increase in

low-value in the lease use low-value in the

Rent paid lease right-of-use

assets with measure liabilities assets with measurem liabilities assets

simplified ment of assets simplified ent of

treatment lease treatment lease

liabilities liabilities

& Iron product line

(Group) Co. related real

Ltd. estate

Land use

Bengang

right

Group Co. 4972711.56 588107.25 4972711.56 756809.43

728282.30

Ltd.square meter

Angang

Group

Machinery

Energy-Savin

and 1026168.33 1035351.86 828571.67 1400598.59

g Technology

equipment

Services Co.Ltd.Benxi Plate Mill

Yuneng High-Pressur 122125000.00 8928791.76

Thermal e Area

58Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period Previous period amount

Variable Variable

Rental costs lease Rental costs lease

for short-term payments Increase for short-term payments

Lessor Name Leased Asset

leases and not Interest leases and not Interest

Type leases of included

in Increase in

low-value in the Rent paid

expense on leases of included expense on

lease right-of- low-value in the Rent paid lease right-of-use

assets with measure liabilities useassets assets with measurem liabilities

assets

simplified ment of simplified ent of

treatment lease treatment lease

liabilities liabilities

Power Co. 2×135MW

Ltd. Waste Gas

Resource

Comprehens

ive

Utilization

Power

Generation

Project

(BOT)

Benxi Iron

and Steel Machinery

(Group) and 7313667.92 3470033.34

Construction Equipment

Co. Ltd.Benxi Iron & Transport 5687307.26

59Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period Previous period amount

Variable Variable

Rental costs lease Rental costs lease

for short-term payments Increase for short-term payments

Leased Asset leases and not Interest in leases and not InterestLessor Name Type leases of included Rent paid expense on right-of- leases of included expense on

Increase in

low-value in the lease use low-value in the

Rent paid lease right-of-use

assets with measure liabilities assets assets with measurem liabilities

assets

simplified ment of simplified ent of

treatment lease treatment lease

liabilities liabilities

Steel (Group) Equipment

Construction

Co. Ltd.Benxi New

Industrial

Land Lease 120000.00

Development

Co. Ltd.Anzi

(Tianjin) Machinery

Financial and 7238081.98 1369970.85

Leasing Co. Equipment

Ltd.

60Bengang Steel Plates Co. Ltd. Interim Report 2026

Items with Profit/Loss Impact Exceeding 10% of the Company’s Total Profit for the Reporting Period

? Applicable ? Not Applicable

During the reporting period there were no lease arrangements that generated profit/loss exceeding 10% of the Company’s total

profit.

2. Significant Guarantees

? Applicable ? Not Applicable

During the reporting period there were no significant guarantees provided by the Company.

3. Entrusted Cash Asset Management

? Applicable ? Not Applicable

During the reporting period the Company did not engage in entrusted wealth management.

4. Other Significant Contracts

? Applicable ? Not Applicable

During the reporting period there were no other significant contracts.XIII. Research visits and interviews received in this reporting period

□Applicable □Not applicable

Main Topics Basic

Reception Discussed and Information

Reception Date Location Visitor Type Visitor

Method Materials Index of the

Provided Research

CPIC Asset

Management –

? ? Zhang

Xueting

Guosen

Securities

(Proprietary

Trading) –

Zhang Meng

Ruijun Asset

Management –

Company's Investor

Online ? ? Liu

production and Relations

Jan 21 2026 Benxi Platform Institution Guoxing

operational Activity Record

Exchange Morgan Huaxin

status on Jan 21 2026

– Zengge

Kaiqi Zhang Yi

Yinhua Fund –

Hua

Qiangqiang Li

Wanda Zhang

Ling

BOC Fund –

Chai Yiming

Essence Fund

– Song

61Bengang Steel Plates Co. Ltd. Interim Report 2026

Shanshan

BOCOM Fund

– Zhuang

Tongyun

ICBC Credit

Suisse – Zhou

Tong

China

Renaissance

Asset

Management –

? ? Liu Jinyu

Rongtong Fund

– Fan Xin

Huatai Asset

Management –

? ? Xia Jialu

Hongkang Life

Insurance –

Sun Ting

HaitongAsset

Management –

? ? Jiao Jie

CICC Asset

Management –

? ? Hu Di

Xingquan Fund

– Yang Yuchen

Ping An

Pension – Jin

Haofeng

Taikang Asset

Management –

? ? Chen Xiao

China Life

AMPAsset

Management –

? ? Qu

Langning

China

Universal Asset

Management –

? ? He Biao

Huihua Wealth

Management –

? ? Zhang

Luotong

Fullgoal Fund

– Huang Qinyi

Taixin Fund –

Qu Yicheng

Caitong

Investor

Securities - Company's

Relations

On-site Zheng Huiwen production and

Feb 25 2026 Benxi Institution Activity Record

research ICBC Credit operational

on Feb 25

Suisse - Zhou status

2026

Tong

62Bengang Steel Plates Co. Ltd. Interim Report 2026

Yinhua Fund -

Jiang Shan

E Fund - Zhou

Zhanman

Investor

ICBC Credit Company's

Online Relations

Suisse - Yang production and

Apr 16 2026 Benxi Platform Institution Activity Record

Yunxin operational

Exchange on Apr 16

CITIC status

2026

Securities - Liu

Dangwu

Investor

Company's

Online Relations

Performance production and

Apr 17 2026 Benxi Platform Others Activity Record

Presentation operational

Exchange on Apr 17

status

2026

China

Merchants

Fund - Guo Qi

Zhongjia Fund

- Duan Jinxuan

Yongying Fund

- Lu Kailin

CITIC Asset

Management -

Zheng Qinyuan

HuaAn Fund -

Wang Xiaodan

BOC

International

(China) Fund -

Zhuang

Tongyun

Huatai Asset

Management - Investor

Company's

Online Xia Jialu Relations

production and

Apr 29 2026 Benxi Platform Institution Everbright-Pra Activity Record

operational

Exchange merica - Yang on Apr 29

status

Ziyi 2026

Yuanxin

Yongfeng Fund

- Qi Haolin

China Southern

Fund - Wang

Yu

Taikang Fund -

Xu Xiaoxuan

Zhao Ruiheng

PICC Pension -

Xia Bingxin

Song Linlin

CCB Principal

Asset

Management -

Wang Xuhui

Wang Bowen

Wanjia Fund -

63Bengang Steel Plates Co. Ltd. Interim Report 2026

Wang Ziyu

Zhou Shi

Taikang Asset

Management -

Chen Xiao

Essence Fund -

Song Shanshan

E Fund - Zhang

Yi

Bosera Fund -

Jia Yunshu

Kaifeng

Investment -

Tong Shuai

Minmetals

Asset

Management -

Hao Yagang

Hualong

Securities -

Zhang Jin

Guotai Fund -

Tan Yu

Soochow

Securities -

Zheng Bin

HuaAn Asset

Management -

Li Ying

China

Universal Asset

Management -

Hou Yuelong

Taikang Asset

Management –

? ? Chen

Xiao Shang Company's Investor

Online

Yifeng production and Relations

May 7 2026 Benxi Platform Institution

Everbright operational Activity Record

Exchange

Securities – status on May 7 2026

Wang Zhaohua

Wang Qiuqi

Liu Fanming

SWAsset

Investor

Management – Company's

Online Relations

? ? Yao production and

May 18 2026 Benxi Platform Institution Activity Record

Zidong Liu operational

Exchange on May 18

Xiaomeng Cao status

2026

Ziyin

Changjiang

Pension – Li Company's Investor

Online

Yiwei production and Relations

Jun 16 2026 Benxi Platform Institution

Huachuang operational Activity Record

Exchange

Securities – status on Jun 16 2026

Zhang Wenxing

64Bengang Steel Plates Co. Ltd. Interim Report 2026

XIV. Other Major Events

? Applicable ? Not Applicable

On June 20 2023 the company disclosed the "Major Asset Replacement and Related Transaction Plan" to carry out

asset replacement with Benxi Iron and Steel Company intending to acquire 100% equity of Benxi Iron and Steel

(Group) Mining Co. Ltd. and intending to dispose of all assets and liabilities of the listed company except for retained

assets and liabilities. The difference between the assets to be acquired and the assets to be disposed of shall be made up

by one party to the other in cash. At present the company is conducting further demonstration and communication and

negotiation on the transaction plan. After the relevant matters are determined the company will convene the board of

directors again for deliberation.XV. Major Events of Subsidiaries

? Applicable ? Not Applicable

65Bengang Steel Plates Co. Ltd. Interim Report 2026

VI. Status of Share Capital Changes and Shareholders

I. Share Capital Changes

1. Share capital changes

Unit: Share

Before the change Increase/decrease (+，-) After the ChangeCapitaliz

ation of

Percenta Issuing of Bonus Percenta

Quantity common Others Subtotal Quantity

ge new share shares ge

reserve

fund

I. Restricted Shares

1. State-owned

Shareholdings

2. State-owned

Legal-person

Shareholding

3. Other domestic

shareholdings

Including: Domestic legal

person holding

Domestic

person holding

4. Foreign Shareholding

Including: Foreign legal

person holding

Foreign person

holding

II. Non-restricted Shares 4108236253 100.00% 153849 153849 4108390102 100.00%

1. Common shares in

370823625390.26%153849153849370839010290.26%

RMB

2. Foreign shares in

4000000009.74%4000000009.74%

domestic market

3. Foreign shares in

oversea market

4.Others

III. Total shares 4108236253 100.00% 153849 153849 4108390102 100.00%

Reason for share capital changes

66Bengang Steel Plates Co. Ltd. Interim Report 2026

√Applicable □Not applicable

During the reporting period 5071 convertible bonds were converted into shares and the company's

total share capital increased by 153849 shares.Approval of share capital changes

□ Applicable √ Not applicable

Status of registration process of transferred shares

□ Applicable √ Not applicable

Progress of the Share Buyback Implementation

□ Applicable √ Not applicable

Progress update on the reduction of repurchased shares via centralized bidding

□ Applicable √ Not applicable

Influences of share capital changes on financial indices such as basic earnings per share diluted

earnings per share and net assets per share attributed to common shareholders

□ Applicable √ Not applicable

Other information the Company deems necessary to be disclosed or required by the authority

□ Applicable √ Not applicable

2. Changes of Restricted Shares

□Applicable √Not applicable

II. Securities Issuance and Listing

□Applicable √Not applicable

III. Shareholders and Actual Controller

1. Total Number of shareholders and shareholding

Unit: Share

Total number of preferred

Total number of common

shareholders whose voting rights

shareholders at the end of the 45172 0

were restored at the end of the

reporting period

reporting period (if any) (see Note

67Bengang Steel Plates Co. Ltd. Interim Report 2026

8)

Shareholding of shareholders holding more than 5% or top 10 shareholders (Excluding shares lent through refinancing)

Number of Changes in Number of pledged or

Name of the Nature of Holding Restricted Un-restricted

shares held at reporting frozen shares

shareholder shareholder Percentage shares held shares held

period-end period Status Number

Benxi Steel & Iron State-owned Frozen

58.65%2409628094002409628094102100000

(Group) Co. Ltd. legal person

Not

Bengang Group State-owned

17.95% 737371532 0 0 737371532 applicab 0

Co. Ltd. legal person

le

Guan Hui NotDomestic

0.70% 28900000 300000 0 28900000 applicab 0

natural person

le

Zhang Wenyou NotDomestic

0.38% 15423865 -2397000 0 15423865 applicab 0

natural person

le

Lyu Ruijun NotDomestic

0.31% 12612200 323100 0 12612200 applicab 0

natural person

le

Zhou Wei NotDomestic

0.25% 10136800 400100 0 10136800 applicab 0

natural person

le

MaYonghua NotDomestic

0.24% 10036457 3100 0 10036457 applicab 0

natural person

le

Hong Kong Not

Foreign legal

Securities Clearing 0.20% 8207219 -6084442 0 8207219 applicab 0

person

Company Limited le

Jiang Dong Not

Domestic

0.19% 7770000 7770000 0 7770000 applicab 0

natural person

le

Tang Linlin Not

Domestic

0.19% 7650000 7650000 0 7650000 applicab 0

natural person

le

Strategy investors or general legal

person becomes top 10 shareholders due None

to rights issued (if any) (See Notes 3)

Benxi Iron and Steel (Group) Co. Ltd. has a related relationship with Benxi Iron and Steel

Group Co. Ltd. and is a concerted action person stipulated in the "Administrative Measures for

Notes to relationship or ‘action in the Acquisition of Listed Companies". It is unknown to the Company whether there is any

concert’ among the top 10 shareholders. 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.

68Bengang Steel Plates Co. Ltd. Interim Report 2026

Explanation of the above-mentioned

The above shareholders are not involved in the entrustment entrusted voting rights or

shareholders' entrusted/entrusted voting

abstention of voting rights.rights and waiver of voting rights

Special instructions for the existence of

special repurchase accounts among the

None

top 10 shareholders (if any) (see Note

10)

Shareholding of top 10 unrestricted shareholders (Excluding shares lent through refinancing and shares locked by senior executives)

Un-restricted shares held at Category of shares

Name of the shareholder

the end of the reporting period Category of shares Quantity

Benxi Steel & Iron (Group) Co. Ltd. 2409628094 Common shares in RMB 2409628094

Bengang Group Co. Ltd. 737371532 Common shares in RMB 737371532

Guan Hui 28900000 Common shares in RMB 28900000

Zhang Wenyou 15423865 Common shares in RMB 15423865

Lyu Ruijun 12612200 Foreign shares in domestic exchange 12612200

Zhou Wei 10136800 Common shares in RMB 10136800

Ma Yonghua 10036457 Foreign shares in domestic exchange 10036457

Hong Kong Securities Clearing Company

8207219 Common shares in RMB 8207219

Limited

Jiang Dong 7770000 Common shares in RMB 7770000

Tang Linlin 7650000 Common shares in RMB 7650000

Benxi Iron and Steel (Group) Co. Ltd. has a related relationship with Benxi Iron and

Notes to relationship or ‘action in concert’ Steel Group Co. Ltd. and is a concerted action person stipulated in the "Administrative

among the top 10 non-restricted shareholders Measures for the Acquisition of Listed Companies". It is unknown to the Company

and among the top 10 non-restricted whether there is any related connection or ‘Action in Concert’ as described by Rules of

shareholders and top 10 shareholders Information Disclosing Regarding Changing of Shareholding Status of Listed

Companies existing among the above shareholders.Guan Hui holds 900000 shares of the Company's stock through an investor general

account and 28000000 shares of the Company's stock through an investor credit

securities account. Zhang Wenyou holds 367998 shares of the Company's stock through

Shareholders among the top 10 participating in an investor general securities account 15055867 shares of the Company's stock

securities margin trading (if any) (see Note 4) through an investor credit securities account. Zhou Wei holds 867900 shares of the

Company's stock through an investor general securities account 9268900 shares of the

Company's stock through an investor credit securities account. Tang Linlin holds

7650000 shares of the Company's stock through an investor credit securities account.

Shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders

of unrestricted tradable shares participating in the refinancing business and lending shares

□ Applicable √ Not Applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed

compared with the previous period due to lending/repayment of refinancing

69Bengang Steel Plates Co. Ltd. Interim Report 2026

□Applicable √ Not Applicable

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.IV. Changes in Shareholdings of Directors and Senior Management

□Applicable √ Not Applicable

There were no changes in the shareholdings of the company's directors and senior management

during the reporting period; for details please refer to the 2025 annual report.V. Changes in the controlling shareholder or actual controller

If the company has previously disclosed that its actual controller is planning a change in control

but the process has not yet been completed please provide an update on the progress of the change

in control.□Applicable √ Not Applicable

Change of controlling shareholders during the reporting period

□Applicable √ Not Applicable

There was no change in the company's controlling shareholder during the reporting period.Change of actual controller during the reporting period

□Applicable √ Not Applicable

There was no change in the actual controller of the company during the reporting period.VI. Information Regarding Preferred Shares

□Applicable √ Not Applicable

The Company had no preferred shares during the reporting period.

70Bengang Steel Plates Co. Ltd. Interim Report 2026

VII. Status of Bonds

√ Applicable □ Not applicable

I. Enterprise bonds

□ Applicable √ Not applicable

During the reporting period the company did not have Enterprise bonds.II. Corporate bonds

□ Applicable √ Not applicable

During the reporting period the company did not have corporate bonds.III. Debt financing tools for non-financial companies

□ Applicable √ Not applicable

During the reporting period the company did not have non-financial corporate debt financing

instruments.IV. Convertible corporate bonds

√ Applicable □ Not applicable

1. Convertible bond issuance

(1) Convertible Bond Issuance Status

Approved by the China Securities Regulatory Commission's "Securities Regulatory License [2020] No.

46" the company publicly issued 68 million convertible corporate bonds on June 29 2020 with a face

value of RMB 100 each a total issuance amount of RMB 6.80 billion and a term of 6 years.

(2) Listing Status of Convertible Bonds

Pursuant to the approval granted by the Shenzhen Stock Exchange (SZSE) in document "Shen Zheng

Shang [2020] No. 656" the Company's convertible corporate bonds with an aggregate principal

amount of RMB 6.8 billion commenced trading on the SZSE on August 4 2020; the bonds are

abbreviated as " Bengang Convertible Bond" and bear the stock code "127018."

71Bengang Steel Plates Co. Ltd. Interim Report 2026

(3) Conversion period for convertible bondsIn accordance with the stipulations of the “Prospectus for the Public Issuance of A-Share ConvertibleCorporate Bonds by Bengang Plate Co. Ltd.” the conversion period for the convertible corporate

bonds issued in this offering commences on the first trading day following the expiration of six months

from the completion of the issuance and extends to the maturity date of the bonds specifically from

January 4 2021 to June 28 2026.

(4) Redemption Status of Convertible Corporate Bonds at Maturity

The conversion period for the “Bengang Convertible Bonds” commenced on January 4 2021. As of

June 26 2026 (the final conversion date) a total of 11695500 convertible bonds had been converted

into the Company’s shares resulting in the issuance of 233018570 shares. The outstanding balance of

“Bengang Convertible Bonds” not converted by maturity amounted to 56304420 bonds with a total

redemption value of RMB 6700225980 (inclusive of tax and the final interest payment); this amountwas fully redeemed on June 29 2026. Effective June 29 2026 the conversion of “BengangConvertible Bonds” ceased and the bonds were delisted from the Shenzhen Stock Exchange. Forfurther details please refer to the “Announcement on the Redemption Results and Share CapitalChanges of Bengang Convertible Bonds” (Announcement No.: 2026-044) published by the Company

on June 30 2026 in designated information disclosure media.

2. Guarantors and top ten holders of convertible bonds

3. Changes in convertible bonds during the reporting period

√Applicable □ Not applicable

Unit: RMB Yuan

Convertible Increase/Decrease

Corporate Bond Before Change After Change

Name Conversion Redemption Repurchase

Bengang

5630953100.00507100.005630442000.004000.000.00

Convertible Bond

4. Cumulative share conversion

√Applicable □ Not applicable

Name Start date Total Cumulative Cumulativ Proportion of Proportion

Total issue Amount of shares

of and end date issue conversion e converted shares of

amount not converted

Convert of quantit amount conversion to the total issue unconvert

(Yuan) (Yuan)

ible conversion y (Yuan) quantity(s quantity ed amount

72Bengang Steel Plates Co. Ltd. Interim Report 2026

Bond (sheet) hares) to the total

issue

amount

Bengan

g 4th Jan 2021

6800068000000116955002330185

Convert – 28th Jun 6.01% 0.00 0.00%

000000.0000.0070

ible 2026

Bond

5. Previous adjustments and revisions of the conversion price

Latest Conversion

Conversio

Name of Adjusted Price as of the

n Price Conversion Price

Convertible Conversion Disclosure Date End of the

Adjustme Adjustment Explanation

Bond Price (Yuan) Reporting Period

nt Date

(Yuan)

Bengang

July 19 Implementation of 2020

Convertible 5.02 July 10 2021 3.29

2021 Equity Distribution Plan

Bond

Bengang Implementation of 2021

October September 28

Convertible 4.55 Interim Equity Distribution 3.29

1320212021

Bond Plan

Bengang

June 16 Implementation of 2021

Convertible 3.95 June 8 2022 3.29

2022 Equity Distribution Plan

Bond

The company's A-share

price triggered the clause in

the prospectus regarding the

Bengang

December December 26 downward adjustment of

Convertible 3.29 3.29

26 2025 2025 the conversion price of

Bond

Bengang convertible bonds

and the board of directors

proposed an amendment.

6. At the end of the reporting period the company's liabilities changes in credit standing and

cash arrangements for debt repayment in future years

Not applicable.V. The loss of the consolidated financial statements during the reporting period exceeds 10%

of the net assets at the end of the previous year

√ Applicable □ Not applicable

Items Losses Reasons for the losses The impact on the company's

production and operation and

73Bengang Steel Plates Co. Ltd. Interim Report 2026

debt repayment capacity

The parent company's net

profit in the first half of 2026

was -2006402032.67 yuan

which was 10% higher than

Net profit in the first half year the net assets in the audited

Parent company of Bengang

of 2026: RMB Operational loss consolidated balance sheet of

Steel Plates Co. Ltd.-2006402032.67 the previous year affecting

the increase in the audited

consolidated net loss in this

period and the increase in the

debt-to-asset ratio.VI. The company’s main accounting data and financial indicators for the past two years as

of the end of the reporting period

Unit: 10 thousand yuan

Changes over ending

Item 30 Jun 2026 31 Dec 2025

balance of last year

Current ratio 0.37 0.35 5.71%

Debt-to-asset ratio 87.38% 81.20% 6.18%

Quick ratio 0.13 0.11 18.18%

Changes over previous

Current period Previous period

period

Net profit after deducting

-192658.78-145037.9832.83%

non-recurring gains and losses

EBITDA total debt ratio -1.45% -1.14% -0.31%

Interest Coverage ratio -6.37 -4.42 44.12%

Cash Interest Coverage ratio 2.88 1.44 100.00%

EBITDA Interest Coverage

-2.37-1.04127.88%

ratio

Loan repayment rate 100.00% 100.00% 0.00%

Interest repayment rate 100.00% 100.00% 0.00%

74Bengang Steel Plates Co. Ltd. Interim Report 2026

VIII. Financial Report

1. Auditor’s report

Whether the interim report is audited

□ Yes √ No

The interim report is unaudited.

2. Financial Statements

The unit of the financial statements is: RMB yuan

75Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENTOF FINANCIAL POSITION

As at 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Assets Notes Jun 30 2026 Dec 31 2025

Current assets

Cash at bank and on hand 5 (1) 1801115557.54 1127390675.15

Settlement provisions

Placements with banks and other financial institutions

Financial assets held for trading

Derivative financial assets

Notes receivable 5 (2) 251853740.38 399759776.83

Accounts receivable 5 (3) 1284974584.51 1178780456.77

Accounts receivable financing 5 (4) 256934534.14 331321177.27

Prepayments 5 (5) 452416738.31 314825894.06

Insurance contract assets

Reinsurance contract assets

Other receivables 5 (6) 1178776.75 4034061.03

Redemptory financial assets for sale

Inventories 5 (7) 6071509678.50 6369194886.12

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 5 (8) 323570705.62 450271362.93

Total current assets 10443554315.75 10175578290.16

Non-current assets

Loan and advances issued

Debt Investments

Other debt investments

Long-term receivables

Long-term equity investments 5 (9) 43269884.04 43269884.04

Other equity instrument investments 5 (10) 890420831.77 890420831.77

Other non-current financial assets

Investment property

Fixed assets 5 (11) 28503203951.19 28412673622.89

Construction in progress 5 (12) 2621834772.76 3074712066.38

Productive biological assets

Oil and gas assets

Right-of-use assets 5 (13) 2863353470.27 2607155393.90

Intangible assets 5 (14) 384438175.33 383659012.77

Development expenditure 6 (2) 3700000.00 3700000.00

Goodwill

Long-term deferred expenses

Deferred tax assets 5 (15) 93916495.69 124211917.95

Other non-current assets 5 (16) 51426835.78 54632516.72

Total non-current assets 35455564416.83 35594435246.42

Total assets 45899118732.58 45770013536.58

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

76Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)

As at 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Liabilities and equities Notes Jun 30 2026 Dec 31 2025

Current Liabilities

Short-term loans 5 (18) 4575371374.99 333660470.12

Loan from central bank

Loan from other banks

Financial liability held for trading

Derivative financial liabilities

Notes payable 5 (19) 13673839787.02 12962287642.88

Accounts payable 5 (20) 3101065676.73 2667236412.66

Advance from customers 5 (21) 252490.93 49541.35

Contract liabilities 5 (22) 2701578357.21 2736697947.25

Financial assets sold for repurchase

Deposits from customers and interbank

Receipt from vicariously traded securities

Receipt from vicariously underwriting securities

Employee benefits payable 5 (23) 10303757.76 2586883.29

Current tax liabilities 5 (24) 53717519.20 59857286.81

Other payables 5 (25) 2551169237.40 2775544196.11

Handling charges and commission payable

Liabilities held for sale

Non-current liabilities due within one year 5 (26) 1457804520.24 6940934862.49

Other current liabilities 5 (27) 290086986.58 275281765.24

Total current liabilities 28415189708.06 28754137008.20

Non-current liabilities

Insurance contract liabilities

Reinsurance contract liabilities

Long-term loans 5 (28) 9227985607.86 6014469758.11

Bonds payable 5 (29)

Including: Preferred stock

Perpetual bond

Lease liabilities 5 (30) 2313796245.61 2239436105.64

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 5 (31) 147564088.15 158199416.58

Deferred tax liabilities 5 (15)

Other non-current liabilities

Total non-current liabilities 11689345941.62 8412105280.33

Total liabilities 40104535649.68 37166242288.53

Shareholders' equity:

Share capital 5 (32) 4108390102.00 4108236253.00

Other equity instruments 5 (33) 947843680.82

Including: Preferred stock

Perpetual bond

Capital reserves 5 (34) 13253305178.53 13252955837.48

Less: treasury shares

Other comprehensive income 5 (35) -129961806.05 -129961806.05

Special reserves 5 (36) 16011079.35 881502.23

Surplus reserves 5 (37) 1195116522.37 1195116522.37

General risk reserve

Undistributed profits 5 (38) -13346838223.54 -11439289982.02

Total equity attributable to equity holders of the parent company 5096022852.66 7935782007.83

Non-controlling interests 698560230.24 667989240.22

Total shareholder's equity 5794583082.90 8603771248.05

Total of liabilities and owners’ equity 45899118732.58 45770013536.58

The notes to the financial statements attached form part of these financial statements.Legal Representative： Chief Financial Officer: Chief Accountant:

77Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.STATEMENTOF FINANCIAL POSITION

As at 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Assets Notes Jun 30 2026 Dec 31 2025

Current assets

Cash at bank and on hand 1644608451.50 969348936.91

Financial assets held for trading

Derivative financial assets

Notes receivable 177619625.27 288032009.55

Accounts receivable 15 (1) 1251296555.12 1153889227.54

Accounts receivable financing 286808102.89 334034656.97

Prepayments 445594707.42 274799041.59

Other receivables 15 (2) 39937108.19 55731976.38

Inventories 5426183573.29 5607342964.33

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 307390019.52 417408930.19

Total current assets 9579438143.20 9100587743.46

Non-current assets

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 15 (3) 2465813343.47 2465813343.47

Other equity instrument investments 890420831.77 890420831.77

Other non-current financial assets

Investment property

Fixed assets 27378200613.08 27265548170.25

Construction in progress 2506825149.42 2965847309.52

Productive biological assets

Oil and gas assets

Right-of-use assets 2863353470.27 2607155393.90

Intangible assets 203215917.08 199952774.53

Including: data assets

Development expenditure 3700000.00 3700000.00

Including: data assets

Goodwill

Long-term deferred expenses

Deferred tax assets 92581529.69 122987010.55

Other non-current assets 51426835.78 53948721.72

Total non-current assets 36455537690.56 36575373555.71

Total assets 46034975833.76 45675961299.17

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

78Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.STATEMENT OF FINANCIAL POSITION (Continued)

As at 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Liabilities and shareholders' equities Notes Jun 30 2026 Dec 31 2025

Current liabilities

Short-term loans 4575371374.99 333660470.12

Financial liability held for trading

Derivative financial liabilities

Notes payable 11286261844.98 10945673752.38

Accounts payable 3669021919.63 2726855682.41

Prepayments

Contract liabilities 7007391578.87 6807101441.62

Employee benefits payable 7871398.25 631573.72

Current tax liabilities 22168044.92 31524009.09

Other payables 2419649102.54 2619633120.59

Liabilities held for sale

Non-current liabilities due within one year 1457804520.24 6940934862.49

Other current liabilities 39611208.41 58382271.92

Total current liabilities 30485150992.83 30464397184.34

Non-current liabilities

Long term loans 9227985607.86 6014469758.11

Bonds payable

Including: Preferred stock

Perpetual bond

Lease liabilities 2313796245.61 2239436105.64

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 147564088.15 158199416.58

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 11689345941.62 8412105280.33

Total liabilities 42174496934.45 38876502464.67

Shareholder’s equity:

Share capital 4108390102.00 4108236253.00

Other equity instruments 947843680.82

Including: Preferred stock

Perpetual bond

Capital reserves 12852815365.60 12852466024.55

Less: Treasury shares

Other comprehensive income -129961806.05 -129961806.05

Special reserves 14780150.08 17561.83

Surplus reserves 1195116522.37 1195116522.37

Undistributed Profits -14180661434.69 -12174259402.02

Total shareholder's equity 3860478899.31 6799458834.50

Total liabilities and shareholder’s equity 46034975833.76 45675961299.17

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

79Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENTOF COMPREHENSIVE INCOME

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Items Notes Current period Previous period

1. Total operating income 22335640944.40 24697800421.99

Including: Operating income 5 (39) 22335640944.40 24697800421.99

Interest income

Premium earned

Income from handling charges and commission

2. Total operating cost 24133982174.64 26136426924.70

Including: Operating cost 5 (39) 23417107587.05 25441217248.92

Interest expense

Expenditure for handling charges and commission

Insurance service expenses

Tax and surcharges 5 (40) 93794767.58 108022323.47

Selling and distribution expenses 5 (41) 57847251.98 61464166.53

General and administrative expenses 5 (42) 270993726.11 285764896.43

Research and development expenses 5 (43) 31891802.98 31617334.27

Financial expenses 5 (44) 262347038.94 208340955.08

Including: Interest expense 5 (44) 245361416.02 207308249.73

Interest income 5 (44) 28085562.37 17521734.29

Add: Other income 5 (45) 54759372.15 109012246.69

Income on investment（“-” for loss） 5 (46) -13043716.99 -17631847.31

Including: Income from associates and joint ventures

Income from derecognition of financial assets measured at amortized cost -2756945.48 -603798.41

Exchange gains（“-” for loss）

Net exposure hedge income（“-” for loss）

Gains from change of fair value （“-” for loss）

Credit impairment loss （“-” for loss） 5 (47) -9502738.36 -9308109.96

Asset impairment loss （“-” for loss） 5 (48) -14435000.34 36671170.60

Assets disposal gains（“-” for loss） 5 (49) 3008.85

3. Operational profit（“-” for loss） -1780563313.78 -1319880033.84

Add: Non-operating income 5 (50) 6082381.82 9723769.21

Less: Non-operating expenses 5 (51) 34760019.49 36523366.11

4. Total profit (“-” for loss) -1809240951.45 -1346679630.74

Less: Income tax expenses 5 (52) 68072357.45 19976028.30

5. Net profit（“-” for loss） -1877313308.90 -1366655659.04

1.Classification by continuing operating

1.Net profit from continuing operation（“-” for loss） -1877313308.90 -1366655659.04

2.Net profit from discontinued operation（“-” for loss）

2.Classification by ownership

1. Net profit attributable to the owners of parent company （“-” for loss） -1907548241.52 -1399277780.90

2. Net profit attributable to non-controlling shareholders （“-” for loss） 30234932.62 32622121.86

6.Other comprehensive income

Other comprehensive income attributable to owners of the 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 in fair value of other equity instrument investments

4) Changes in fair value of company's credit risk

5) Insurance finance reserve for insurance contracts that will not be reclassified to

profit or loss

6) Others

2.Other comprehensive income that will be reclassified into profit or loss.

1) Other comprehensive income under the equity method which can be reclassified

into profit or loss

2) Changes in fair value of other debt investments

3) Amount of financial assets reclassified into other comprehensive income

4) Credit impairment provision of other debt investments

5) Cash flow hedges reserve

6) Translation differences in foreign currency financial statements

7) Financial changes in insurance contracts which can be reclassified to profit or loss

8) Financial changes in reinsurance contracts which can be reclassified to profit or loss

9) Others

Other comprehensive income attributable to non-controlling shareholders’ equity after

tax

7. Total comprehensive income -1877313308.90 -1366655659.04

Total comprehensive income attributable to the owner of the parent company -1907548241.52 -1399277780.90

Total comprehensive income attributable to non-controlling shareholders 30234932.62 32622121.86

8. Earnings per share

1）Basic earnings per share (RMB yuan/share) -0.464 -0.341

2）Diluted earnings per share (RMB yuan/share) -0.464 -0.341

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

80Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Items Notes Current period Previous period

1. Total operating income 15 (4) 22142202489.73 24843114408.22

Less: Operating cost 15 (4) 23400804629.82 25744208800.42

Tax and surcharges 67485264.31 77033502.59

Selling and distribution expenses 76802940.13 93709728.93

General and administrative expenses 254396265.45 270944864.54

Research and development expenses 31891802.98 31617334.27

Financial expenses 258458066.76 209002624.36

Including: Interest expense 245361416.02 207308249.73

Interest income 26310927.41 15302608.67

Add: Other income 48788836.85 68822256.72

Income on investment（“-” for loss） 15 (5) -10296649.51 -17359947.52

Including: Income from associates and joint ventures

Income from derecognition of financial assets

measured at amortized cost

Net exposure hedge income（“-” for loss）

Gains from change of fair value （“-” for loss）

Credit impairment loss（“-” for loss） -8768999.66 -20985096.52

Assets impairment loss（“-” for loss） -14435000.34 36671170.60

Assets disposal gains（“-” for loss） 3008.85

2. Operational profit（“-” for loss） -1932348292.38 -1516251054.76

Add: Non-operating income 5748673.13 9650019.10

Less: Non-operating expenses 34646932.56 33395650.60

3. Total profit (“-” for loss) -1961246551.81 -1539996686.26

Less: Income tax expenses 45155480.86 146195.41

4. Net profit（“-” for loss） -2006402032.67 -1540142881.67

1.Net profit from continuing operation (“-” for loss) -2006402032.67 -1540142881.67

2.Net profit from discontinued operation (“-” for loss)

5.Other comprehensive income

1.Other comprehensive income items that will not be reclassified

into gains/losses

1) Re-measurement of defined benefit plans of changes

2) Other comprehensive income under the equity method cannot

be reclassified into profit or loss

3) Changes in fair value of other equity instrument investments

4) Changes in fair value of company's credit risk

2.Other comprehensive income that will be reclassified into profit or

loss.

1) Other comprehensive income under the equity method investee

can be reclassified into profit or loss

2) Changes in fair value of other debt investments

3) Amount of financial assets reclassified into other

comprehensive income

4) Credit impairment provision of other debt investments

5) Cash flow hedges reserve

6) Translation differences in foreign currency financial statements

7) Others

6. Total comprehensive income -2006402032.67 -1540142881.67

7. Earnings per share

1）Basic earnings per share

2）Diluted earnings per share

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

81Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Items Notes Current period Previous period

1.Cash flow from operating activities

Cash received from sale of goods or rendering of services 24821179787.30 26352011964.12

Net increase of customers' deposit and interbank deposit

Net increase of loan from central bank

Cash received from premiums of insurance contracts issued

Net cash received for reinsurance business

Cash from receiving interest handling charge and commission

Net increase of loans from borrowing funds

Net increase of fund for repurchase business

Net cash received from traded securities

Tax rebate received 27615774.73

Other cash received relating to operating activities 5 (53) 69030457.30 122173179.14

Subtotal of cash inflows from operating activities 24917826019.33 26474185143.26

Cash paid for goods and services 22939289959.24 24803326040.01

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

Net cash paid for reinsurance contracts held

Net increase in policy loans

Net increase in capital lent

Cash for payment of interest handling charge and commission

Cash paid to and on behalf of employees 895157541.69 942556803.50

Cash paid for all types of taxes 221801883.88 197929978.91

Other cash paid relating to operating activities 5 (53) 155004688.99 158742556.80

Subtotal of cash outflows from operating activities 24211254073.80 26102555379.22

Net cash flows from operating activities 706571945.53 371629764.04

2. Cash flows from investing activities

Cash received from disposal of investments

Cash received from return on investments

Net cash received from disposal of fixed assets intangible assets and other 87181100.00

long-term assets

Net cash received from disposal of subsidiaries and other operating units

Other cash received relating to investing activities

Subtotal of cash inflows from investing activities 87181100.00

Cash paid for acquisition of fixed assets intangible assets and other long-term 835819961.61 976150324.56

assets

Cash paid for acquisition of investments 60000000.00

Net cash paid for acquiring subsidiaries and other business units

Other cash paid relating to investing activities

Subtotal of cash outflows from investing activities 835819961.61 1036150324.56

Net cash flows from investing activities -835819961.61 -948969224.56

3. Cash flows from financing activities

Proceeds from investment 29400000.00

Including: Proceeds from investment of non-controlling shareholders of 29400000.00

subsidiary

Proceeds from borrowings 9617500000.00 1251997823.71

Other proceeds relating to financing activities 5 (53) 921460041.20 1815330484.81

Subtotal of cash inflows from financing activities 10538960041.20 3096728308.52

Cash repayments of borrowings 7553405605.24 703625752.00

Cash payments for distribution of dividends profit or interest expenses 1195084112.26 337785953.76

Including: Cash paid to non-controlling shareholders as dividend and profit by 51908524.27

subsidiaries

Other cash payments relating to financing activities 5 (53) 946192873.14 1961851891.13

Subtotal of cash outflows from financing activities 9694682590.64 3003263596.89

Net cash flows from financing activities 844277450.56 93464711.63

4. Effect of foreign exchange rate changes on cash and cash equivalents -42316077.98 12181557.53

5. Net increase in cash and cash equivalents 5 (54) 672713356.50 -471693191.36

Add: Cash and cash equivalents at the beginning of the period 5 (54) 287470306.31 1590205218.91

6. Cash and cash equivalents at the ending of the period 5 (54) 960183662.81 1118512027.55

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

82Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CASH FLOWS

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Items Notes Current period Previous period

1. Cash flow from operating activities

Cash received from sale of goods or rendering of services 22218706118.83 25486623895.09

Tax rebate received 25654204.30

Other cash received relating to operating activities 62530710.01 359517948.34

Subtotal of cash inflows from operating activities 22306891033.14 25846141843.43

Cash paid for goods and services 21024174232.95 24109950616.59

Cash paid to and on behalf of employees 827130009.63 869629604.70

Cash paid for all types of taxes 121653206.63 126265175.99

Other cash paid relating to operating activities 147323918.94 144527255.02

Subtotal of cash outflows from operating activities 22120281368.15 25250372652.30

Net cash flows from operating activities 186609664.99 595769191.13

2. Cash flows from investing activities

Cash received from disposal of investments

Cash received from return on investments 12000000.00 184898383.95

Net cash received from disposal of fixed assets intangible

87181100.00

assets and other long-term assets

Net cash received from disposal of subsidiaries and other

operating units

Other cash received relating to investing activities

Subtotal of cash inflows from investing activities 12000000.00 272079483.95

Cash paid for acquisition of fixed assets intangible assets and

326382505.42972611679.66

other long-term assets

Cash paid for acquisition of investments 90600000.00

Net cash paid for acquisition of subsidiaries and other

operating unit

Other cash paid relating to investing activities

Subtotal of cash outflows paid for investing activities 326382505.42 1063211679.66

Net cash flows from investing activities -314382505.42 -791132195.71

3. Cash flows from financing activities

Proceeds from investment

Cash received from borrowings 9617500000.00 1251997823.71

Other cash received relating to financing activities 921460041.20 1815330484.81

Subtotal of cash inflows from financing activities 10538960041.20 3067328308.52

Cash repayments of borrowings 1922963605.24 703625752.00

Cash payments for distribution of dividends profit or interest 125300132.26 285877429.49

Other cash payments relating to financing activities 7617416200.58 1961851891.13

Subtotal of cash outflows from financing activities 9665679938.08 2951355072.62

Net cash flows from financing activities 873280103.12 115973235.90

4. Effect of foreign exchange rate changes on cash and

-42256621.4312043045.91

cash equivalents

5. Net increase in cash and cash equivalents 703250641.26 -67346722.77

Add: Cash and cash equivalents at the beginning of the period 177479144.77 1064914001.36

6. Ending balance of cash and cash equivalents 880729786.03 997567278.59

The notes to the financial statements attached form part of these financial statements.Legal Representative: Chief Financial Officer: Chief Accountant:

83Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEEL PLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Current period

Owner's equity attributable to parent company

Items Other equity instruments Less: Other General Non-controlling Total of owner's

Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equityOthers

shares bond shares income reserve

1. Ending balance of last year 4108236253.00 947843680.82 13252955837.48 -129961806.05 881502.23 1195116522.37 -11439289982.02 7935782007.83 667989240.22 8603771248.05

Add: Change of accounting policies

Correction of errors for last period

Business consolidation under common

control

Others

2. Beginning balance of current year 4108236253.00 947843680.82 13252955837.48 -129961806.05 881502.23 1195116522.37 -11439289982.02 7935782007.83 667989240.22 8603771248.05

3. Changes in current year (“-” for decrease) 153849.00 -947843680.82 349341.05 15129577.12 -1907548241.52 -2839759155.17 30570990.02 -2809188165.15

1) Total comprehensive income -1907548241.52 -1907548241.52 30234932.62 -1877313308.90

2) Capital increase and decrease by

shareholders 153849.00 -947843680.82 349341.05 -947340490.77 -947340490.77

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity

instruments 153849.00 -947843680.82 -947689831.82 -947689831.82

(3) Share-based payment attributable to

owners' equity

(4) Others 349341.05 349341.05 349341.05

3) Profit distribution

(1) Appropriation to surplus reserves

(2) Appropriation to general risk reserve

(3) Profit distribution to shareholders

(4) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in

capital (or stock)

(2) Surplus reserves transferred into paid-in

capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans

transferred into Retained Earnings

(5) Other comprehensive income transferred

into Retained Earnings

(6) Others

5) Special reserves 15129577.12 15129577.12 336057.40 15465634.52

(1) Provision of special reserves 30136206.94 30136206.94 2508026.61 32644233.55

(2) Use of special reserves 15006629.82 15006629.82 2171969.21 17178599.03

6) Others

4. Ending balance of current year 4108390102.00 13253305178.53 -129961806.05 16011079.35 1195116522.37 -13346838223.54 5096022852.66 698560230.24 5794583082.90

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

84Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEELPLATES CO. LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Previous period

Owner's equity attributable to parent company

Items Other equity instruments Less: Other General Non-controlling Total of owner's

Undistributed

Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest equity

Others profit

shares bond shares income reserve

1. Ending balance of last year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16

Add: Change of accounting policies

Correction of errors for last period

Business consolidation under common control

Others

2. Beginning balance of current year 4108228157.00 947850195.03 13225632166.95 -93407196.62 809649.65 1195116522.37 -7497011632.90 11887217861.48 611915458.68 12499133320.16

3. Changes in current year (“-” for decrease) 4048.00 -3257.10 11835.26 15368052.79 -1399277780.90 -1383897101.95 62709204.45 -1321187897.50

1) Total comprehensive income -1399277780.90 -1399277780.90 32622121.86 -1366655659.04

2) Capital increase and decrease by shareholders 4048.00 -3257.10 11835.26 12626.16 29400000.00 29412626.16

(1) Common share invested by shareholders 29400000.00 29400000.00

(2) Capital input by the holder of other equity 4048.00 -3257.10 11835.26 12626.16 12626.16

instruments

(3) Share-based payment attributable to owners'

equity

(4) Others

3) Profit distribution

(1) Appropriation to surplus reserves

(2) Appropriation to general risk reserve

(3) Profit distribution to shareholders

(4) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in

capital (or stock)

(2) Surplus reserves transferred into paid-in

capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans

transferred into Retained Earnings

(5) Other comprehensive income transferred into

Retained Earnings

(6) Others

5) Special reserves 15368052.79 15368052.79 687082.59 16055135.38

(1) Provision of special reserves 32080601.70 32080601.70 2253924.06 34334525.76

(2) Use of special reserves 16712548.91 16712548.91 1566841.47 18279390.38

6) Others

4. Ending balance of current year 4108232205.00 947846937.93 13225644002.21 -93407196.62 16177702.44 1195116522.37 -8896289413.80 10503320759.53 674624663.13 11177945422.66

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

85Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Current period

Items Other equity instruments Less: Other Special Undistributed Total shareholder’s

Share capital Preference Perpetual Capital reserves Treasury comprehensi

Others reserves

Surplus reserves profits equity

shares bond shares ve income

1. Ending balance of last year 4108236253.00 947843680.82 12852466024.55 -129961806.05 17561.83 1195116522.37 -12174259402.02 6799458834.50

Add: Change of accounting policies

Correction of errors for last period

Others

2. Beginning balance of current year 4108236253.00 947843680.82 12852466024.55 -129961806.05 17561.83 1195116522.37 -12174259402.02 6799458834.50

3. Changes in current year (“-” for decrease) 153849.00 -947843680.82 349341.05 14762588.25 -2006402032.67 -2938979935.19

1) Total comprehensive income -2006402032.67 -2006402032.67

2) Capital increase and decrease by shareholders 153849.00 -947843680.82 349341.05 -947340490.77

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity instruments -947843680.82 -947843680.82

(3) Share-based payment attributable to shareholders' equity

(4) Others 153849.00 349341.05 503190.05

3) Profit distribution

(1) Appropriation of surplus reserves

(2) Profit distribution to shareholders

(3) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in capital (or stock)

(2) Surplus reserves transferred into paid-in capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans transferred into

Retained Earnings

(5) Other comprehensive income transferred into retained

earnings

(6) Others

5) Special reserves 14762588.25 14762588.25

(1) Provision of special reserves 23140800.00 23140800.00

(2) Use of special reserves 8378211.75 8378211.75

6) Others

4. Ending balance of current year 4108390102.00 12852815365.60 -129961806.05 14780150.08 1195116522.37 -14180661434.69 3860478899.31

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

86Bengang Steel Plates Co. Ltd. Interim Report 2026

BENGANG STEEL PLATES CO. LTD.STATEMENT OF CHANGES IN EQUITY (Continued)

For the period ended 30 June 2026

(Expressed in Renminbi unless otherwise indicated)

Previous period

Other equity instruments Less: Other

Items Special Undistributed Total shareholder’s

Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves

Others reserves profits equity

shares bond shares ve income

1. Ending balance of last year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67

Add: Change of accounting policies

Correction of errors for last period

Others

2. Beginning balance of current year 4108228157.00 947850195.03 12825142354.02 -93407196.62 9276.81 1195116522.37 -8088697453.94 10894241854.67

3. Changes in current year (“-” for decrease) 4048.00 -3257.10 11835.26 13263849.83 -1540142881.67 -1526866405.68

1) Total comprehensive income -1540142881.67 -1540142881.67

2) Capital increase and decrease by shareholders 4048.00 -3257.10 11835.26 12626.16

(1) Common share invested by shareholders

(2) Capital input by the holder of other equity instruments 4048.00 -3257.10 11835.26 12626.16

(3) Share-based payment attributable to shareholders' equity

(4) Others

3) Profit distribution

(1) Appropriation of surplus reserves

(2) Profit distribution to shareholders

(3) Others

4) Transfers within shareholders' equity

(1) Capital reserves transferred into paid-in capital (or stock)

(2) Surplus reserves transferred into paid-in capital (or stock)

(3) Surplus reserves to recover loss

(4) Net changes of defined contribution plans transferred into

Retained Earnings

(5) Other comprehensive income transferred into retained

earnings

(6) Others

5) Special reserves 13263849.83 13263849.83

(1) Provision of special reserves 25328400.00 25328400.00

(2) Use of special reserves 12064550.17 12064550.17

6) Others

4. Ending balance of current year 4108232205.00 947846937.93 12825154189.28 -93407196.62 13273126.64 1195116522.37 -9628840335.61 9367375448.99

The notes to the financial statements attached form part of these financial statements

Legal Representative: Chief Financial Officer: Chief Accountant:

87Bengang Steel Plates Co. Ltd. Interim Report 2026

Bengang Steel Plates Co. Ltd.Notes to the financial statements

For the period from Jan. to Jun. 2026

(Expressed in Renminbi unless otherwise indicated)

1. Basic Information of the Company

(1) Company profile

Bengang Steel Plates Co. Ltd. (hereinafter referred to as “Bengang Steel Plates” or “theCompany”) as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on

27 March 1997 was incorporated as a joint stock limited company through public share offer

of domestic listed foreign currency denominated shares (B shares) in the People’s Republic

of China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co. Ltd. (“BengangGroup”) through reorganization of operations assets and liabilities of its plants namely

Steel Smelting Plant Primary Rolling Plant and Continuous Hot Rolling Plant.As approved by China Securities Regulatory Commission (hereinafter referred to as “theCSRC”) the Company issued 400000000 B-shares at HKD 2.38 each in Shenzhen Stock

Exchange on 10 June 1997. On 3 November 1997 the Company issued another 120000000

A-shares (Renminbi common Shares) at RMB 5.40 each and listed in Shenzhen Stock

Exchange since 15 January 1998. The capital shares were totaled to 1136000000 shares.On 14 March 2006 according to the resolutions of the Shareholders’ Meeting regarding share

equity relocation the Share Equity Relocation Scheme Response to Bengang Steel Plate Co.Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned

Asset Administrative Committee Bengang Group – the only holder of non-negotiable

state-owned legal person shares paid the consideration to the current shareholders to obtain

the current option for the 40800000 shares of the total 616000000 shares it was holding.Shareholding positions have been registered with China Securities Depository & Clearing

Corporation Ltd. Shenzhen Office. However the total amount of capital shares of Bengang

Steel Plates Co. Ltd. was not changed through the share equity relocation action.On July 6 2006 the Company received Document No. Zhengjian Gongsi Zi (2006) 126

issued by the China Securities Regulatory Commission (CSRC) on June 30 2006. This

document approved the issuance by the Company of 2 billion RMB-denominated ordinary

shares to Bengang Group for the purpose of acquiring relevant assets from Bengang Group.On the same day Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127

issued by China Securities Regulatory Committee and were exempted for the liability of

88Bengang Steel Plates Co. Ltd. Interim Report 2026

undertaking the purchase offer. The liability was caused by subscribing of the 2 billion new

shares and the total shareholding was thus increased to 2.5752 billion shares (accounting for

82.12% of the total capital shares of the Company). On 28 August 2006 as approved by

China Securities Depository & Clearing Corporation Ltd. Shenzhen Office the registration

and conditional placing procedures of the 2 billion new shares were completed. On 28

September 2006 the privately placed shares were approved by Shenzhen Stock Exchange to

be placed in the stock market. The placing price was RMB4.6733 per share.Approved by the China Securities Regulatory Commission [2017] No. 1476 Bengang Steel

Plate Co. Ltd. privately placed no more than 739371534 RMB ordinary shares (A shares) to

no more than 10 issuers. The non-public offering was completed on 9 February 2018 and

739371532 shares were actually issued. The placing price was RMB5.41 per share.

On August 20 2021 the State-owned Assets Supervision and Administration Commission of

the People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)

and Ansteel Group Co. Ltd. (hereinafter referred to as Ansteel) signed the "Agreement on the

Gratuitous Transfer of State-owned Equity in Bengang Group Co. Ltd. between the

State-owned Assets Supervision and Administration Commission of the People's Government

of Liaoning Province and Ansteel Group Co. Ltd." According to the agreement Liaoning

SASAC will transfer its 51% equity in Bengang Group Co. Ltd. (hereinafter referred to as

Bengang Group) to Ansteel Group Co. Ltd. for free. After the completion of this free transfer

Ansteel became the controlling shareholder of Bengang Group and Ansteel indirectly hold

76.67% of the total share capital of Bengang Steel Plates.

As at 30 June 2026 the capital shares were totaled to 4108390102.00 shares.The Company’s uniform social credit code: 91210000242690243E.The Company’s registered address: 16th Renmin Road Pingshan District Benxi Liaoning

Province.The Company’s legal representative: Wang Zhanwei.The parent company of Bengang Steel Plates Co. Ltd is Benxi Steel and Iron (Group) Co.Ltd. and the actual controller is Ansteel Group Co. Ltd..Bengang Steel Plates Co. Ltd. belongs to ferrous metal smelting and rolling processing

industry and is mainly involved in producing and trading of ferrous metal products.The financial statements have been approved for reporting by the board of directors of the

Company on 27 August 2026.

89Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Basis of preparation

(1) Basis of preparationThe financial statements have been prepared in accordance with “Accounting Standards forBusiness Enterprises – Basic Standard” and relevant specific standards application materialsinterpretations (together hereinafter referred to as “Accounting Standards for BusinessEnterprises”) issued by the Ministry of Finance and “Information Disclosure Rules forCompanies of securities for public issuance No. 15 – General Regulations for FinancialStatements” issued by the China Securities Regulatory Commission.

(2) Going concern

The financial statements have been prepared on a going concern basis.

3. Significant accounting policies and accounting estimates

The following disclosed content covers the specific accounting policies and accounting

estimates that are adopted by the Company based on the actual production and operation

characteristics. Please see Note (10) Financial instruments (12) Inventory (15) Fixed assets

(18) Intangible assets (24) Revenue under “3. Significant accounting policies andaccounting estimates” for details.

(1) Statement of compliance with China Accounting Standards for Business Enterprises

The financial statements present truly and completely the financial position operation results

and cash flows of the consolidated and parent company during the reporting period in

accordance with China Accounting Standards for Business Enterprises.

(2) Accounting year

The Accounting year is from 1 January to 31 December.

(3) Operating period

The operating period is twelve months.

(4) Functional currency

The Company’s functional currency is RMB.

(5) The accounting treatment for Business combination under/not under common control

Business combination under common control

The assets and liabilities that the Company acquired in a business combination shall be

measured on the basis of their carrying amount of acquiree’s assets liabilities (as well as the

goodwill arising from the business combination) in the consolidated financial statement of

the ultimate controller on the combining date. As for the balance between the carrying

amount of the net assets obtained by the Company and the carrying amount of the

90Bengang Steel Plates Co. Ltd. Interim Report 2026

consideration paid by it (or the total par value of the shares issued) capital reserve needs to

be adjusted. If the capital reserve is not sufficient any excess shall be adjusted against

retained earnings.Business combination not under common control

The Company shall on the acquisition date measure the assets given and liabilities incurred

or assumed by an enterprise for a business combination in light of their fair values and shall

record the balances between them and their carrying amounts into the profits and losses at the

current period. The Company shall recognize the positive balance between the combination

costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.The Company shall treat the negative balance between the combination costs and the fair

value of the identifiable net assets it obtains from the acquiree into the profits and losses of

the current period. All identifiable assets liabilities and contingent liabilities of the acquiree

that meet the recognition criteria acquired in the merger are measured at fair value on the

acquisition date.Directly related expenses incurred for a business combination are recorded in the current

period's profit or loss when incurred; transaction costs of equity securities or debt securities

issued for a business combination are included in the initial recognition amount of the equity

securities or debt securities.

(6) Scope of consolidation and Consolidation of Financial Statements

1. Scope of consolidation

The scope of consolidation of consolidated financial statements is determined based on

control and the scope of consolidation includes the Company and all its subsidiaries. Control

means that the Company has power over the investee enjoys variable returns through

participation in the relevant activities of the investee and has the ability to use the power

over the investee to influence the amount of its returns.

2. Procedure of consolidation

When preparing consolidated financial statements the parent shall consider the entire group

as an accounting entity adopt uniform accounting policies to prepare the consolidated

financial statements which reflect the overall financial position operating results and cash

flows of the group. The impact of internal transactions between the Company and its

subsidiaries and between subsidiaries shall be offset. If internal transactions indicate that

relevant assets have suffered impairment losses such losses shall be fully recognized. The

accounting policy and accounting period of the subsidiaries within the consolidation scope

shall be in accordance with those of the Company. If not it is necessary to make the

91Bengang Steel Plates Co. Ltd. Interim Report 2026

adjustment according to the Company’s accounting policies and accounting period when

preparing the consolidated financial statements.The owners’ interests profit or loss and comprehensive income of the subsidiary attributable

to the non-controlling shareholders shall be presented separately in the shareholders’ equity

of the consolidated balance sheet and under the item of net profit of the consolidated

statement of comprehensive income and under the item of total comprehensive income.Where losses assumed by the minority exceed the minority’s interests in the beginning equity

of a subsidiary the excess shall be charged against the minority’s interests.

(1) Increasing new subsidiaries and businesses

If the Company has a new subsidiary due to business combination under common control

during the reporting period it shall adjust the beginning balance in the consolidated

statement of financial position when preparing consolidated statement of financial position.The revenue expenses and profits of the subsidiaries from the acquisition date to the end of

the reporting period are included in the Company’s consolidated statement of

comprehensive income. The cash flow of the subsidiaries from the acquisition date to the

end of the reporting period is included in the Company’s consolidated statement of cash

flows. And meanwhile the Company shall adjust the relevant items of the comparative

financial statements as if the reporting entity for the purpose of consolidation has been in

existence since the date the ultimate controlling party first obtained control.When the Company becomes capable of exercising control over an investee under common

control due to additional investment or other reasons adjustment shall be made as if the

reporting entity after the combination has been in existence since the date the ultimate

controlling party first obtained control. The investment income recognized between date of

previously obtaining equity investment and the date the acquiree and acquirer are under

common control which is later and the combining date other comprehensive income and

other changes of net assets arising from the equity investment previously held before

obtaining the control the acquiree shall be adjusted against the prior retained earnings of the

comparative financial statements and the current profit or loss respectively.If it is not under common control it will be included in the consolidated financial

statements from the date of acquisition based on the fair value of each identifiable asset

liability and contingent liability determined on the date of acquisition.When the Company becomes capable of exercising control over an investee not under

common control due to additional investment or other reasons the acquirer shall remeasure

92Bengang Steel Plates Co. Ltd. Interim Report 2026

its previously held equity interest in the acquiree to its fair value at the acquisition date. The

difference between the fair value and the carrying amount shall be recognized as investment

income for the period when the acquisition takes place. When the previously held equity

investment is accounted for under the equity method any other comprehensive income

previously recognized in relation to the acquiree’s equity changes shall be transferred to

profit or loss for the current period when the acquisition takes place.

(2) Disposing subsidiaries or businesses

1. General treatment

When the Company loses control over an investee due to partial disposal or other reasons

the acquirer shall re-measure the remaining equity interests in the acquiree to its fair value at

the acquisition date. The difference between sums of consideration received for disposal

equity shares and fair value of the remaining shares and sums of share of net assets of the

subsidiary calculated continuously from the acquisition date or the combination date based

on the previous shareholding proportion and goodwill shall be recognized as investment

income for the period when the Company loses control over acquiree. When the previously

held equity investment is accounted for under the equity method any other comprehensive

income previously recognized in relation to the acquiree’s equity changes and other equity

changes rather than changes from net profit other comprehensive income and profit

distribution shall be transferred to investment income for the current period when the

Company loses control over acquiree.

(7) Classification of joint venture arrangements and accounting treatment

Joint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint venture party of a joint venture arrangement and have the

assets related to the arrangement and assumes the liabilities related to the arrangement it is

a joint operation.The Company confirms the following items related to the share of interest in the joint

operation and performs accounting treatment in accordance with the relevant enterprise

accounting standards:

a. Confirm the assets held by the company separately and confirm the assets held jointly by

the Company's share;

b. Recognize the liabilities assumed by the Company separately and the liabilities jointly

assumed by the company's share;

c. Recognize the income generated by the sale of the Company’s share of common

operating output;

d. Recognize the revenue generated from the sale of joint operations based on the

Company's share;

e. Confirm the expenses incurred separately and the expenses incurred in the joint operation

according to the Company's share.The Company's investment in joint ventures is accounted for using the equity method. Fordetails see Note (14) Long-term equity investments under “ 3. Significant accountingpolicies and accounting estimates”.

93Bengang Steel Plates Co. Ltd. Interim Report 2026

(8) Recognition of cash and cash equivalents

The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cashequivalents” refers to short-term and highly liquid investments that are readily convertible to

known amounts of cash and which are subject to an insignificant risk of change in value.

(9) Foreign currency transaction and translation of foreign currency financial statements

1. Foreign currency transactions

Foreign currency transactions are translated into RMB at the current rate at the day of

transactions.The foreign currency monetary items shall be translated at the spot exchange rate on the

balance sheet date. The balance of exchange arising from the difference between the spot

exchange rate on the balance sheet date and the spot exchange rate at the time of initial

recognition or prior to the balance sheet date except those arising from the raising of special

foreign debt for the purchase or construction of capitalizable assets thus shall be capitalized

according to the borrowing costs capitalization principle shall be recorded into the profits

and losses at the current period.

2. Translation of foreign currency financial statements

The asset and liability items in the statement of financial position shall be translated at a spot

exchange rate on the balance sheet date. Among the owner's equity items except the ones as

"undistributed profits" others shall be translated at the spot exchange rate at the time when

they are incurred. The income and expense items in the income statement shall be translated

using an exchange rate that is determined in a systematic and reasonable manner and

approximates the spot exchange rate on the transaction date.When disposing an overseas business the Company shall shift the balance which is

presented under the items of the owner's equities in the statement of financial position and

arises from the translation of foreign currency financial statements related to this oversea

business into the disposal profits and losses of the current period.

(10)Financial instruments

The Company recognizes a financial asset financial liability or equity instrument when it

becomes a party to a financial instrument contract.

1. Classification of financial instruments

The Company shall classify financial assets on the basis of both the entity’s business model

for managing the financial assets and the contractual cash flow characteristics of the financial

asset as: financial assets measured at amortised cost financial assets measured at fair value

94Bengang Steel Plates Co. Ltd. Interim Report 2026

through other comprehensive income and financial assets measured at fair value through

profit or loss at initial measurement.A financial asset which is not designated as a financial asset measured at fair value through

profit or loss shall be measured at amortised cost if both of the following conditions are met.- The financial asset is held within a business model whose objective is to hold financial

assets in order to collect contractual cash flows.- The contractual terms of the financial asset give rise on specified dates to cash flows that

are solely payments of principal and interest on the principal amount outstanding.A financial asset shall be measured at fair value through other comprehensive income if both

of the following conditions are met.- The financial asset is held within a business model whose objective is achieved by both

collecting contractual cash flows and selling financial assets.- The contractual terms of the financial asset give rise on specified dates to cash flows that

are solely payments of principal and interest on the principal amount outstanding.The Company may make an election at initial recognition for non-trading equity instrument

investments whether it is designated as a financial asset (equity instrument) that is measured

at fair value through other comprehensive income. The designation is made on the basis of a

single investment and the related investment meets the definition of an equity instrument

from the issuer's perspective.Other financial assets other than these are classified as financial assets measured at fair value

through profit or loss. At the initial recognition in order to eliminate or significantly reduce

accounting mismatches financial assets that should be classified as measured at amortized

value or financial assets measured at fair value through other comprehensive income can be

designated as financial assets measured at fair value through profit or loss.The Company shall classify financial liabilities as financial liabilities measured at amortised

cost and financial liabilities measured at fair value through profit or loss at initial

measurement.

2. Recognition and measurement of financial instruments

(1) Financial assets measured at amortised cost

95Bengang Steel Plates Co. Ltd. Interim Report 2026

Financial assets measured at amortized cost include notes receivables accounts receivables

other receivables long-term receivables debt investments etc. At initial recognition the

Company shall measure a financial asset at its fair value plus or minus transaction costs that

are directly attributable to the acquisition or issue of the financial asset. The Company shall

measure account receivables at their transaction price if the account receivables do not

contain a significant financing component and accounts receivables that the company has

decided not to consider for a financing component of no more than one year.Interests calculated by using the effective interest method during the holding period shall be

recognized in profit or loss.When recovering or disposing the receivables the difference between the price obtained and

the carrying value shall be recognized in current profit or loss.

(2) Financial assets measured at fair value through other comprehensive income (debt

instruments)

Financial assets measured at fair value through other comprehensive income (debt

instruments) include receivables financing other debt investments etc. At initial recognition

the Company shall measure a financial asset at its fair value plus transaction costs that are

directly attributable to the acquisition or issuance of the financial asset. The financial assets

are subsequently measured at fair value. Changes in fair value are included in other

comprehensive income except for interest calculated using the effective interest method

impairment losses or gains and exchange gains and losses.When the financial assets are derecognized the accumulated gain or loss previously

recognized in other comprehensive income is transferred from other comprehensive income

and recognized in profit or loss.

(3) Financial assets at fair value through other comprehensive income (equity

instruments)

Financial assets at fair value through other comprehensive income (equity instruments).include other equity instrument investments etc. At initial recognition the Company shall

measure a financial asset at its fair value plus transaction costs that are directly attributable to

the acquisition or issue of the financial asset. The financial assets are subsequently measured

96Bengang Steel Plates Co. Ltd. Interim Report 2026

at fair value. Changes in fair value are included in other comprehensive income. The

dividends obtained are recognised in profit and loss.When the financial assets are derecognized the accumulated gain or loss previously

recognised in other comprehensive income is transferred from other comprehensive income

and recognised in retained earnings.

(4)Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include transactional financial assets

derivative financial assets other non-current financial assets etc. The Company shall

measure the financial assets at fair value at initial recognition. Transaction costs are

recognised in profit or loss. Changes in fair value are included in profit or loss.

(5) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include current financial liabilities

derivative financial liabilities etc. The Company shall measure the financial assets at fair

value at initial recognition. Transaction costs are recognised in profit or loss. Changes in fair

value are included in profit or loss.When the financial liabilities are derecognized the difference between the fair value and the

initially recorded amount is recognized as investment income and the gains and losses from

changes in fair value are adjusted.

(6) Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost include short-term borrowings notes payables

accounts payables other payables long-term borrowings bonds payables long-term

payables. At initial recognition the Company shall measure a financial liability at its fair

value plus transaction costs that are directly attributable to the acquisition or issue of the

financial asset.Interests calculated by using the effective interest method during the holding period shall be

recognized in profit or loss.

97Bengang Steel Plates Co. Ltd. Interim Report 2026

When the financial liabilities are derecognized the difference between the price obtained and

the carrying value shall be recognised in profit and loss.

3. Termination of recognition of financial assets and financial assets transfer

When one of the following conditions is met the company terminates the recognition of

financial assets.- Termination of contractual rights to receive cash flows from financial assets;

- The financial assets have been transferred and almost all the risks and rewards in the

ownership of the financial assets have been transferred to the transferee;

- The financial assets have been transferred. Although the company has neither transferred

nor retained almost all the risks and rewards of the ownership of the financial assets it

has not retained control of the financial assets.If the Company modifies or renegotiates a contract with its counterparty and the modification

constitutes a substantial modification the original financial asset will be derecognized and a

new financial asset will be recognized in accordance with the modified terms.If it retained nearly all of the risks and rewards related to the ownership of the financial asset

it shall not stop recognizing the financial asset.To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in

these Standards for stopping the recognition of a financial asset the Company shall follow

the principle of the substance over form.Transfer of an entire financial asset can be divided into partial financial assets transfer and

entire financial asset transfer. If the transfer of an entire financial asset satisfies the conditions

for de-recognition the difference between the amounts of the following 2 items shall be

recorded in the profits and losses of the current period:

(1) The book value of the transferred financial asset; and

(2) The sum of consideration received from the transfer and the accumulative amount of the

changes of the fair value originally recorded in the owners' equities (in the event that the

financial asset involved in the transfer is a financial asset Available-for-sale).If the transfer of partial financial asset satisfies the conditions to derecognize the entire book

value of the transferred financial asset shall between the portion whose recognition has been

stopped and the portion whose recognition has not been stopped (under such circumstance

the service asset retained shall be deemed as a portion of financial asset whose recognition

98Bengang Steel Plates Co. Ltd. Interim Report 2026

has not been stopped) be apportioned according to their respective relative fair value and the

difference between the amounts of the following 2 items shall be included into the profits and

losses of the current period :

(1) The book value of the portion whose recognition has been stopped; and

(2) The sum of consideration of the portion whose recognition has been stopped and the

portion of the accumulative amount of the changes in the fair value originally recorded in the

owner's equities which is corresponding to the portion whose recognition has been stopped

(in the event that the financial asset involved in the transfer is a financial asset

Available-for-sale).If the transfer of financial assets does not satisfy the conditions to stop the recognition it

shall continue to be recognized as financial assets and the consideration received shall be

recognized as financial liabilities.

4. Termination of recognition of financial liabilities

Only when the prevailing obligations of a financial liability are relieved in all or in part may

the recognition of the financial liability be terminated in all or partly. Where the Company

(debtor) enters into an agreement with a creditor so as to substitute the existing financial

liabilities by way of any new financial liability and if the contractual stipulation regarding

the new financial liability is substantially different from that regarding the existing financial

liability it shall terminate the recognition of the existing financial liability and shall at the

same time recognize the new financial liability.Where the Company makes substantial revisions to part or all of the contractual stipulations

of the existing financial liability it shall terminated the recognition of the existing financial

liability or part of it and at the same time recognize the financial liability after revising the

contractual stipulations as a new financial liability.Where the recognition of a financial liability is totally or partially terminated the Company

shall include into the profits and losses of the current period the difference between the

carrying amount which has been terminated from recognition and the considerations it has

paid (including the non-cash assets it has transferred out and the new financial liabilities it

has assumed).Where the Company buys back part of its financial liabilities it shall distribute on the date of

repurchase the carrying amount of the whole financial liabilities in light of the comparatively

fair value of the part that continues to be recognized and the part whose recognition has

99Bengang Steel Plates Co. Ltd. Interim Report 2026

already been terminated. The gap between the carrying amount which is distributed to the

part whose recognition has terminated and the considerations it has paid (including the

noncash assets it has transferred out and the new financial liabilities it has assumed) shall be

recorded into the profits and losses of the current period.

5. Determination of the fair value of the financial assets (liabilities)

If active markets for the financial instruments exist the fair value shall be measured by

quoted prices in the active markets. If active markets for the financial instruments do not

exist valuation techniques shall be applied for the measurement. The Company uses

valuation techniques appropriate in the circumstances and for which sufficient data are

available to measure fair value. The Company chooses relevant observable inputs for

identical or similar assets or liabilities. Only when relevant observable inputs are unavailable

or should the Company use unobservable inputs for the asset or liability.

6. Impairment provision of the financial assets

The Company recognize the expected credit loss on financial assets measured at amortized

cost financial assets measured at fair value through other comprehensive income (debt

instruments) financial guarantee contract and so on on the individual or portfolio basis.The Company considers all reasonable and relevant information including past events

current conditions and forecasts of future economic conditions and uses the risk of default

as the weight to calculate the probability-weighted amount of present value of difference

between the cash flow receivable from the contract and the cash flow expected to be received

to confirm the expected credit loss.For account receivables and contract assets recognized according to Accounting Standards for

Business Enterprises No. 14 Revenue whether a significant financing component is

contained or not the Company shall always measure the loss allowance at an amount equal to

lifetime expected credit losses.For lease receivables recognized according to Accounting Standards for Business Enterprises

No. 21 Lease the Company shall always measure the loss allowance at an amount equal to

lifetime expected credit losses.For other financial instruments the Company shall assess changes in the credit risk of the

relevant financial instruments since initial recognition at each balance sheet date.The company compares the risk of default on the balance sheet date of financial instruments

with the risk of default on the date of initial recognition to determine the relative change in

100Bengang Steel Plates Co. Ltd. Interim Report 2026

the risk of default during the expected life of the financial instrument to assess whether there

is a significant increase in credit risk of financial assets since the initial recognition.Generally the Company believes that the credit risk of the financial instrument has

significantly increased over 30 days after the due date unless there is solid evidence that the

credit risk of the financial instrument has not increased significantly since initial recognition.If the credit risk of a financial instrument at the reporting date is relatively low the Company

considers that the credit risk of the financial instrument has not increased significantly since

the initial recognition.If the credit risk of the financial instrument has increased significantly since the initial

confirmation the Company shall measure the loss allowance for a financial instrument at an

amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument

has not increased significantly since initial recognition the Company shall measure the loss

allowance for that financial instrument at an amount equal to 12-month expected credit losses.The increase or reversal amount of loss allowance thus formed shall be included in the

current profits and losses as impairment losses or gains. For financial assets at fair value

through other comprehensive income (debt instruments) loss provisions are recognised in

other comprehensive income and impairment losses or gains are recognised in profit or loss

at the current period without reducing the carrying amount of the financial asset in the

balance sheet.

(11) Recognition criteria and measurement methods for expected credit losses on receivables

1. Receivables with expected credit losses measured on a portfolio basis

Portfolios Basis for determiningportfolios Measurement methods for ECL

Drawing upon historical credit loss experience

and incorporating current conditions as well as

Accounts receivable – forecasts of future economic conditions a

aging portfolio Aging matrix correlating accounts receivable aging

with expected credit loss rates is prepared to

calculate expected credit losses.Expected credit losses are calculated by

Related-Party Transactions referencing historical credit loss

Accounts Receivable — within the Scope of the experience—combined with current conditions

Risk-Free Portfolio Company’s Consolidated and forecasts of future economic

Financial Statements conditions—using default risk exposure andexpected credit loss rates over the next 12

months or the entire remaining life.Drawing upon historical credit loss experience

and incorporating current conditions as well as

Other receivables – aging Aging forecasts of future economic conditions aportfolio matrix correlating accounts receivable aging

with expected credit loss rates is prepared to

calculate expected credit losses.

101Bengang Steel Plates Co. Ltd. Interim Report 2026

Portfolios Basis for determiningportfolios Measurement methods for ECL

Items within the scope of

the Company's Expected credit losses are calculated by

consolidated financial referencing historical credit loss

Other Receivables — statements—including experience—combined with current conditions

Risk-Free Portfolio inter-company balances and forecasts of future economic

with related parties petty conditions—using default risk exposure and

cash and suspense expected credit loss rates over the next 12

accounts months or the entire remaining life.

2. Provision matrix of aging and expected credit loss rates for aging portfolios

Aging Accounts receivable ECL(%) Other receivables ECL(%)

Within 1 year (inclusive

same hereafter) 1 1

1-2 years 10 10

2-3 years 20 20

3-4 years 100 100

4-5 years 100 100

Over 5 years 100 100

3. Criteria for Identifying Receivables for Which Expected Credit Losses Are Recognized

on an Individual Basis

For receivables where the credit risk differs significantly from the credit risk of the

portfolio the Company recognizes expected credit losses on an individual basis.

(12) Inventory

1. Inventory classification and costs of inventory

Inventories include material in transit raw material turnover materials finished goods work

in process issue commodity materials for consigned processing etc.Inventory is initially measured at cost. Inventory cost includes purchase cost processing cost

and other expenditures incurred to bring inventory to its current location and state.

2. Valuation method for inventory dispatched

The weighted average method is used to confirm the actual cost of the inventories dispatched.

3. Inventory system

The Company uses perpetual inventory system.

4. Amortization of low-valued consumables and packing materials

(1) Low-valued consumables shall be amortized in full amount on issuance.

(2) Packing materials shall be amortized in full amount on issuance.

5. The basis for confirming the net realizable value of inventories and the methods to

make provision for the inventory impairment loss

102Bengang Steel Plates Co. Ltd. Interim Report 2026

On the balance sheet date inventories shall be measured at the lower of cost and net

realizable value. When the cost of inventories is higher than its net realizable value provision

for inventory impairment loss shall be made. The net realizable value refers to the amount of

the estimated selling price of the inventory minus the estimated costs that will occur at the

time of completion estimated selling expenses and relevant taxes in daily activities.The net realizable value of inventories (finished goods stock commodity material etc.) held

for direct selling in the daily business activity shall be calculated by deducting the estimated

sale expense and relevant taxes from the estimated sale price of inventories; The net

realizable value of inventories for further processing in the daily business activity shall be

calculated by deducting the estimated cost of completion estimated sale expense and relevant

taxes from the estimated sale price of inventories; The net realizable value of inventories held

for the execution of sales contracts or labor contracts shall be calculated on the ground of the

contract price. If the Company holds more inventories than the quantities subscribed in the

sales contract the net realizable value of the excessive part of the inventories shall be

calculated on the ground of the general sales price.After the inventory impairment is withdrawn if the factors that previously affected the

write-down of the inventory value have disappeared causing the net realizable value of the

inventory to be higher than its book value it shall be reversed within the amount of the

inventory impairment that has been withdrawn and the reverted amount shall be included in

the current profit and loss.

(13) Contract asset

1. Recognition methods and criteria of contract assets

When either party to a contract has performed the Company shall present the contract in

the statement of financial position as a contract asset or a contract liability depending on

the relationship between the Company’s performance and the customer’s payment. If the

Company have the rights to receive consideration (the right is conditioned on factors other

than the passage of time) by transferring goods or services to a customer the entity shall

present the contract as a contract asset. Contract assets and contract liabilities under the

same contract are disclosed in net amount. An entity shall present any unconditional rights

to consideration (only the passage of time is required) separately as a receivable.

2. Expected credit loss of contract assets

For the accounting policy of the expected credit loss of contract assets please refer to Note

(10) 6. Impairment provision of the financial assets under “3. Significant accountingpolicies and accounting estimates”

(14) Long-term equity investment

1. Criteria of joint control and significant influence

Joint control is the contractually agreed sharing of control of an arrangement which exists

only when decisions about the relevant activities require the unanimous consent of the parties

103Bengang Steel Plates Co. Ltd. Interim Report 2026

sharing control. If the Company and other joint venture have joint control of the investee and

have rights to the net assets of the investee the investee is a joint venture of the Company.Significant influence is the power to participate in the financial and operating policy

decisions of the investee but not control or join control of those policies. If the Company

could exert significant influence over the investee the investee is the associate of the

Company.

2. The initial cost of long-term equity investment from business acquisition

(1) Long-term equity investment from business acquisition

For a business combination under common control the initial investment cost of the

long-term equity investment shall be the absorbing party’s share of the carrying amount of

the owner’s equity of the party being absorbed in the consolidated financial statements of the

ultimate controlling party at combination date. The difference between the initial investment

cost and the carrying amount of the previously held equity investment together with the

additional investment cost for new shares at combination date shall be adjusted to the capital

reserve. If the balance of capital reserve is not sufficient any excess shall be adjusted to

retained earnings. When an investor becomes capable of exercising control over an investee

due to additional investment or other reasons the difference between the initial investment

cost recognized in accordance with the above principles and the sum of the book value of the

long-term equity investment before the merger plus the book value of the cost for the further

shares acquired on the merger date shall be adjusted to the capital reserve. If the balance of

capital reserve is not sufficient any excess shall be adjusted to retained earnings.For a business combination not under common control the initial investment cost of the

long-term equity investment shall be the acquisition cost at the acquisition date. When an

investor becomes capable of exercising control over an investee due to additional investment

or other reasons the initial investment cost under the cost method shall be the carrying

amount of previously held equity investment together with the additional investment cost.

(2) The initial cost of the long-term equity investment other than from business acquisition

The initial cost of a long-term equity investment obtained by making payment in cash shall

be the purchase cost which is actually paid.The initial cost of a long-term equity investment obtained on the basis of issuing equity

securities shall be the fair value of the equity securities issued.

3. Subsequent measurement and profit or loss recognition

104Bengang Steel Plates Co. Ltd. Interim Report 2026

(1) Cost method

The Company adopts cost method for the long term investment in subsidiary company unless

the investment qualifies as held for sale. An investing enterprise shall in accordance with the

attributable share of the net profits or losses of the invested entity recognize the investment

profits or losses except the dividend declared but unpaid which is included in the payment

when acquiring the investment.

(2) Equity method

A long-term equity investment in an associate or a joint venture shall be accounted for using

the equity method. Where the initial investment cost of a long-term equity investment

exceeds investor’s interest in the fair values of an investee’s identifiable net assets at the

acquisition date no adjustment shall be made to the initial investment cost. Where the initial

cost is less than the investor’s interest in the fair values of the investee’s identifiable net

assets at the acquisition date the difference shall be credited to profit or loss for the current

period and the cost of long-term equity investment shall be adjusted accordingly.The Company shall recognize its share of the investee’s net profits or losses as well as its

share of the investee’s other comprehensive income as investment income or losses and other

comprehensive income and adjust the carrying amount of the investment accordingly. The

carrying amount of the investment shall be reduced by the portion of any profit distributions

or cash dividends declared by the investee that is attributable to the investor. The investor’s

share of the investee’s owners’ equity changes other than those arising from the investee’s

net profit or loss other comprehensive income or profit distribution and the carrying amount

of the long-term equity investment shall be adjusted accordingly.During the holding period if the investee makes consolidated financial statements the

Company shall calculate its share based on the investee’s net profit other comprehensive

income and the amount of other owners' equity attribute to the investee in the consolidated

financial statements. The investor shall recognize its share of the investee’s net profits or

losses after making appropriate adjustments according to the Company’s accounting

principles and operating period based on the fair values of the investee’s identifiable net

assets.The unrealized profits or losses resulting from transactions between the investor and its

associate or joint venture shall be eliminated in proportion to the investor’s equity interest in

the investee based on which investment income or losses shall be recognized except the

transaction of investment or sale of assets is a business. Any losses resulting from

105Bengang Steel Plates Co. Ltd. Interim Report 2026

transactions between the investor and investee which are attributable to asset impairment

shall be recognized in full.The company’s net losses incurred by joint ventures or associates in addition to assuming

additional loss obligations are limited to the book value of long-term equity investments and

other long-term equity that essentially constitutes net investment in joint ventures or

associates. If a joint venture or associated enterprise realizes net profits in the future the

company resumes recognizing its share of profits after the share of profits makes up for the

share of unrecognized losses.

(3) Disposal of long-term equity investment

When disposing long-term equity investment the difference between the proceeds actually

received and the carrying amount shall be recognized in profit or loss for the current period.Partial disposal of long-term equity investments accounted for by the equity method and the

remaining equity is still accounted for by the equity method the other comprehensive income

recognized by the original equity method shall be carried forward according to the same basis

as the direct disposal of related assets or liabilities by the investee. All other changes in the

interests of the holders are carried forward to the current profit and loss on a pro rata basis.When an investor can no longer exercise joint control of or significant influence over an

investee due to disposal of equity investment or other reasons any other comprehensive

income previously recognized shall be accounted for on the same basis as would have been

required if the investee had directly disposed of the related assets or liabilities for the current

period upon discontinuation of the equity method. Other owner's equity change shall be

transferred into profit or loss of current period in full when the Company cease to adopt the

equity method.When an investor can no longer control the investee due to partial disposal when the

individual financial statements are prepared the remaining equity can exercise joint control

or significant influence on the investee the equity method shall be used to account for the

remaining equity. It is deemed that the equity method is adopted for adjustment since the

acquisition and the other comprehensive income recognized before the control of the

investee is obtained is carried forward on the same basis as the direct disposal of related

assets or liabilities by the investee because the equity method is used for accounting. The

confirmed changes in other owners’ equity are carried forward to the current profit and loss

on a pro rata basis. If the remaining equity cannot exercise joint control or exert significant

influence on the investee it shall be recognized as a financial asset and the difference

106Bengang Steel Plates Co. Ltd. Interim Report 2026

between its fair value and book value on the date when control is lost shall be included in the

current profit and loss and other comprehensive income and other owner’s interests

previously recognized shall be transferred to profit or loss in full.If the equity investment of a subsidiary is disposed through multiple transactions until it loses

control which is a package transaction each transaction shall be accounted as a transaction

that disposes of the equity investment of the subsidiary and loses control. Each transaction

before the loss of control the difference between the disposal price and the book value of the

corresponding disposed part of long-term equity investment is firstly recognized as other

comprehensive income in individual financial statements and then transferred to the current

profit and loss when the control is lost. If it is not a package transaction each transaction

shall be accounted separately.

(15) Fixed assets

1. Recognition of Fixed assets

The term "fixed assets" refers to the tangible assets held for the sake of producing

commodities rendering labor service renting or business management and of which useful

life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously

meets the conditions as follows:

(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;

and

(2) The cost of the fixed asset can be measured reliably.

Fixed assets are initially measured at cost (and considering the impact of expected

dismantling cost factors).Subsequent expenditures related to fixed assets are included in the cost of fixed assets when

the related economic benefits are likely to flow in and their costs can be reliably measured;

the book value of the replaced part is derecognized; all other subsequent expenditures are

incurred shall be included in the current profit and loss.

2. Fixed assets depreciation

Fixed assets are depreciated under the straight line method. The depreciation rate is

determined according to the category of assets the useful life and the expected residual rate.If the components of the fixed assets have different useful lives or provide the economic

benefits in a different way then different depreciation rate or method shall be applied and the

depreciation of the components shall be calculated separately.

107Bengang Steel Plates Co. Ltd. Interim Report 2026

Details of classification depreciation period residual value rate and annual depreciation rate

are as follows:

Depreciation

Depreciation Residual Value

Category Depreciation method Rate

Period Rate (%)

(%)

Plants and Buildings straight line method 40 years 5.00 2.38

Machinery straight line method 17-24 years 5.00 3.96-5.59

Transportation and

straight line method 5-12 years 5.00 7.92-19.00

other equipment

3. Disposal of fixed assets

When a fixed asset is disposed or it is expected that no economic benefits will be generated

through use or disposal the recognition of fixed asset shall be de terminated. The amount of

disposal income of fixed assets raising from sell transfer scrapping or damage shall be

included in the current profit and loss after deducting its book value and related taxes.

(16) Construction in progress

Construction in progress is measured at the actual cost incurred. The actual cost includes

construction costs installation costs borrowing costs that meet the capitalization conditions

and other necessary expenditures incurred before the construction in progress reaches its

intended use status. Construction in progress is transferred to fixed asset when it has reached

its working condition for its intended use and depreciation will be accrued from the next

month.

(17) Borrowing costs

1. Principle of the recognition of capitalized borrowing costs

Where the borrowing costs incurred to an enterprise can be directly attributable to the

acquisition and construction or production of assets eligible for capitalization it shall be

capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be

recognized as expenses on the basis of the actual amount incurred and shall be recorded into

the current profits and losses.Assets eligible for capitalization refer to the fixed assets investment property inventories and

other assets of which the acquisition and construction or production may take quite a long

time to get ready for its intended use or for sale.

2. The capitalization period of borrowing costs

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The capitalization period shall refer to the period from the commencement to the cessation of

capitalization of the borrowing costs excluding the period of suspension of capitalization of

the borrowing costs.The borrowing costs shall not be capitalized unless they simultaneously meet the following

requirements:

(1) The asset disbursements have already incurred which shall include cash transferred

non-cash assets or interest bearing debts paid for the acquisition and construction or

production activities for preparing assets eligible for capitalization;

(2) The borrowing costs has already incurred; and

(3) The acquisition and construction or production activities which are necessary to prepare

the asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the

intended use or sale the capitalization of the borrowing costs shall be ceased.

3. The suspension of capitalization of borrowing costs

Where the acquisition and construction or production of a qualified asset is interrupted

abnormally and the interruption period lasts for more than 3 months the capitalization of the

borrowing costs shall be suspended. If the interruption is a necessary step for making the

qualified asset under acquisition and construction or production ready for the intended use or

sale the capitalization of the borrowing costs shall continue. The borrowing costs incurred

during such period shall be recognized as expenses and shall be recorded into the profits and

losses of the current period till the acquisition and construction or production of the asset

restarts.

4. Method of calculating the capitalization rate and capitalized amount of borrowing costs

For interest expense (minus the income of interests earned on the unused borrowing loans as

a deposit in the bank or investment income earned on the loan as a temporary investment)

and the ancillary expense incurred to a specifically borrowed loan those incurred before a

qualified asset under acquisition construction or production is ready for the intended use or

sale shall be capitalized at the incurred amount when they are incurred and shall be recorded

into the costs of the asset eligible for capitalization.The Company shall calculate and determine the to-be-capitalized amount of interests on the

general borrowing by multiplying the weighted average asset disbursement of the part of the

accumulative asset disbursements minus the general borrowing by the capitalization rate of

109Bengang Steel Plates Co. Ltd. Interim Report 2026

the general borrowing used. The capitalization rate shall be calculated and determined in light

of the weighted average interest rate of the general borrowing.During the capitalization period the exchange difference between the principal and interest

of the foreign currency special loan is capitalized and included in the cost of the assets that

meet the capitalization conditions. Exchange differences arising from the principal and

interest of foreign currency borrowings other than foreign currency special borrowings are

included in the current profits and losses.

(18) Intangible Assets

1. Measurement of Intangible Assets

(1) Initial measurement is based on cost upon acquisition

The cost of an intangible asset on acquisition include the purchase price relevant taxes and

other necessary disbursements which may be directly attributable to bringing the intangible

asset to the conditions for the expected purpose.

(2) Subsequent Measurement

The Company shall analyze and judge the beneficial period of intangible assets upon

acquisition.Intangible assets with finite beneficial period shall be amortized under the straight-line

method during the period when the intangible asset can bring economic benefits to the

enterprise. If it is unable to estimate the beneficial period of the intangible asset it shall be

regarded as an intangible asset with uncertain service life and shall not be amortized.

2. Estimated useful lives of intangible assets with limited useful lives

Amortization Residual value

Item Estimated useful life Criteria

method (%)

Straight line Land use right

Land use right 50 years

method certificate

Straight line Estimated useful

Software 10 years

method life

3. Classification criteria for internal research phase and development phase

The expenditures for its internal research and development projects of an enterprise shall be

classified into research expenditures and development expenditures.Research phase refers to the phase of creative and planned investigation to acquire and study

to acquire and understand new scientific or technological knowledge.

110Bengang Steel Plates Co. Ltd. Interim Report 2026

Development phase refers to the phase during which the result of research phase or other

knowledge is applied into certain projects or designs for the manufacturing of new or

substantially improved material device and product before commercial manufacturing and

use.

4. Criteria of capitalization of development phase expenditures

Expenditures incurred during the research phase are recognized in profit or loss for the period

when incurred. Expenditures incurred during the research phase shall be capitalized if they

meet the following conditions at the same time. If the expenditures incurred during the

development phase do not meet the following conditions they shall be included in the current

period's profit and loss.

(1) It is technically feasible to complete the intangible asset so that it can be used or sold.

(2) The Company intent to complete the intangible asset and use or sell it.

(3) The way intangible assets generate economic benefits including being able to prove that

there is a market for the products produced by using the intangible assets or the

intangible assets themselves has market. If the intangible assets will be used internally it

should be able to prove that the intangible assets will be useful.

(4) The company has sufficient technical financial and other resources to complete the

development of the intangible asset and is able to use or sell the intangible asset.

(5) The expenditure attributable to the development phase of the intangible asset can be

measured reliably.If it is impossible to distinguish between expenditures in the research phase and expenditures

in the development phase all research and development expenditures incurred shall be

included in the current period's profit and loss.

(19) Impairment of long-term assets

For long-term assets such as long-term equity investments investment property under the

cost model fixed assets construction in progress right-of-use assets intangible assets with

limited useful lives and oil gas assets etc. the Company shall perform impairment tests at the

period end if there is clear indication of impairment. If the recoverable amounts of long-term

assets are less than their carrying amounts the carrying amounts of the assets shall be written

down to their recoverable amounts. The write-downs are recognized as impairment losses and

charged to current profit and loss. The recoverable amounts of long-term assets are the higher

of their fair values less costs to sell and the present values of the future cash flows expected

to be derived from the assets. The Company shall estimate its recoverable amount on an

individual basis. Where it is difficult to do so it shall determine the recoverable amount ofthe assets on the basis of the asset group to which the asset belongs. The term "assets group”

111Bengang Steel Plates Co. Ltd. Interim Report 2026

refers to a minimum combination of assets by which the cash flows could be generated

independently

The goodwill intangible assets with uncertain useful life and intangible assets not meeting

the expected condition for use shall be subject to an impairment test at least at the end of each

year.When the Company makes an impairment test of assets it shall as of the purchasing day

apportion the carrying value of the business reputation formed by merger of enterprises to the

relevant asset groups by a reasonable method. Where it is difficult to do so it shall be

apportioned to the relevant combinations of asset groups. A related group of assets or

combination of asset groups is an asset group or combination of asset groups that can benefit

from the synergy effect of a business combination.When making an impairment test on the relevant asset groups or combination of asset groups

containing business reputation if any evidence shows that the impairment of asset groups or

combinations of asset groups is possible the Company shall first make an impairment test on

the asset groups or combinations of asset groups not containing business reputation calculate

the recoverable amount compare it with the relevant carrying value and recognize the

corresponding impairment loss. Then the Company shall make an impairment test of the asset

groups or combinations of asset groups containing business reputation and compare the

carrying value of these asset groups or combinations of asset groups (including the carrying

value of the business reputation apportioned thereto) with the recoverable amount. Where the

recoverable amount of the relevant assets or combinations of the asset groups is lower than

the carrying value thereof it shall recognize the impairment loss of the business reputation.Impairment losses on long-term assets shall not be reversed in subsequent accounting periods

once recognized.

(20) Long-term deferred expense

The long-term deferred expense refers to the expenses incurred but shall be borne by current

and subsequent accounting period which is more than one year.

(21) Contract liability

When either party to a contract has performed the Company shall present the contract in the

statement of financial position as a contract asset or a contract liability depending on the

relationship between the Company’s performance and the customer’s payment. If a customer

pays consideration or the Company has a right to an amount of consideration before the

112Bengang Steel Plates Co. Ltd. Interim Report 2026

Company transfers a good or service to the customer the Company shall present the contract

as a contract liability. Contract assets and contract liabilities under the same contract are

disclosed in net amount.

(22) Employee benefits

1. Accounting treatment for short employee benefit

The Company shall recognise in the accounting period in which an employee provides

service actually occurred short-term employee benefits as a liability with a corresponding

charge to the profit or loss or cost of an asset for the current period.Payments made by an enterprise of social security contributions for employees payments of

housing funds and union running costs employee education costs provided in accordance

with relevant requirements shall in the accounting period in which employees provide

services be calculated according to prescribed bases and percentages in determining the

amount of employee benefits.The employee welfare expenses incurred by the company are included in the current profit

and loss or related asset costs based on the actual amount when they actually occur. Among

them non-monetary benefits are measured at fair value.

2. Accounting treatment of post-employment benefits

(1) Defined contribution plan

The Company shall recognize in the accounting period in which an employee provides

service pension fund and unemployment fund for employees as a liability according to

the local government regulations. The amount shall be calculated according to local

prescribed bases and percentages in determining the amount of employee benefits with a

corresponding charge to the profit or loss or cost of an asset for the current period. In

addition the Company also participates in the enterprise annuity plan/supplementary

pension insurance fund approved by relevant state departments. The Company pays a

certain proportion of the total salary of employees to the annuity plan/local social

insurance agency and the corresponding expenses are included in the current profit and

loss or related asset cost.

(2) Defined benefit plan

In accordance with the formula determined by the Projected Unit Credit Method the

Company attributes the benefit obligations arising from defined benefit plans to the

periods during which employees render services and records them in current profit or

loss or as part of the cost of relevant assets.

113Bengang Steel Plates Co. Ltd. Interim Report 2026

The deficit or surplus resulting from the present value of the defined benefit plan

obligations less the fair value of the defined benefit plan assets is recognized as a net

defined benefit liability or net defined benefit asset. Where a defined benefit plan has a

surplus the Company measures the net defined benefit asset at the lower of the plan

surplus and the asset ceiling.All defined benefit obligations—including those expected to be settled within twelve

months after the end of the reporting period in which employees render the related

service—are discounted using market yields at the balance sheet date on government

bonds or high-quality corporate bonds in an active market that match the currency and

term of the defined benefit obligations.Service costs arising from defined benefit plans as well as the net interest on the net

defined benefit liability or asset are recognized in current profit or loss or included in the

cost of relevant assets. Changes arising from the remeasurement of the net defined

benefit liability or asset are recognized in other comprehensive income and are not

subsequently reclassified to profit or loss in future accounting periods; upon the

termination of the defined benefit plan the amounts originally recognized in other

comprehensive income are transferred in full within equity to retained earnings.Upon the settlement of a defined benefit plan a settlement gain or loss is recognized

based on the difference between the present value of the defined benefit obligation and

the settlement price both determined as of the settlement date.

3. Accounting treatment of termination benefits

The Company shall recognize an employee benefits liability for termination benefits with a

corresponding charge to the profit or loss for the current period at the earlier of the following

dates: when the Company cannot unilaterally withdraw the offer of termination benefits

because of an employment termination plan or a curtailment proposal; or when the Company

recognizes costs or expenses related to a restructuring that involves the payment of

termination benefits.

(23) Estimated liabilities

The obligation pertinent to a contingency shall be recognized as an estimated liability when

the following conditions are satisfied simultaneously:

(1) That obligation is a current obligation of the enterprise;

(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of

performance of the obligation; and

(3) The amount of the obligation can be measured in a reliable way.

114Bengang Steel Plates Co. Ltd. Interim Report 2026

The estimated debts shall be initially measured in accordance with the best estimate of the

necessary expenses for the performance of the current obligation.To determine the best estimate an enterprise shall take into full consideration of the risks

uncertainty time value of money and other factors pertinent to the Contingencies. If the time

value of money is of great significance the best estimate shall be determined after

discounting the relevant future outflow of cash.When all or some of the expenses necessary for the liquidation of an estimated debts of an

enterprise is expected to be compensated by a third party the compensation shall be

separately recognized as an asset only when it is virtually certain that the reimbursement will

be obtained. The amount recognized for the reimbursement shall not exceed the book value

of the estimated debts.The company reviews the book value of the estimated liabilities on the balance sheet date. If

there is conclusive evidence that the book value does not reflect the current best estimate the

book value will be adjusted according to the current best estimate.

(24) Revenue

(1) The general principle of revenue recognition and measurement

The company shall recognise revenue when (or as) the company satisfies a performance

obligation when (or as) the customer obtains control of a promised good or service. Control

of a promised good or service refers to the ability to direct the use of and obtain substantially

all of the remaining benefits from it.If the contract contains two or more performance obligations the company shall allocate the

transaction price to each individual performance obligation based on the relative proportion

of the stand-alone selling price of the goods or services promised by each individual

performance obligation on the date of the contract. The company measures revenue based on

the transaction price allocated to each individual performance obligation.The transaction price is the amount of consideration to which the company expects to be

entitled in exchange for transferring promised goods or services to a customer excluding

amounts collected on behalf of third parties or amounts expected to be returned to customers.The company shall consider the terms of the contract and its customary business practices to

determine the transaction price. When determining the transaction price the company shall

consider the effects of all of the following: variable consideration the existence of a

significant financing component in the contract non-cash consideration and consideration

payable to a customer. The company determines the transaction price that includes variable

115Bengang Steel Plates Co. Ltd. Interim Report 2026

consideration at an amount that does not exceed the amount of accumulated recognized

revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated.If there is a significant financing component in the contract the company shall recognise

revenue at an amount that reflects the price that a customer would have paid for the promised

goods or services if the customer had paid cash for those goods or services when (or as) they

transfer to the customer and use the effective interest method to amortize the difference

between the transaction price and the contract consideration during the contract period.The company transfers control of a good or service over time and therefore satisfies a

performance obligation and recognises revenue over time if one of the following criteria is

met. Otherwise the company satisfies the performance obligation at a point in time.(a) the customer simultaneously receives and consumes the benefits provided by the

company’s performance as the company performs;

(b) the company’s performance creates or enhances an asset that the customer controls as the

asset is created or enhanced; or

(c) the company’s performance does not create an asset with an alternative use to the

company and the company has an enforceable right to payment for performance completed to

date.The company shall recognise revenue over time by measuring the progress towards complete

satisfaction of that performance obligation except where the performance progress cannot be

reasonably determined. The company considers the nature of the goods or services and

adopts the output method or the input method to determine the progress of performance.Where the performance progress cannot be reasonable determined but the company expects

to recover the costs incurred in satisfying the performance obligation the company shall

recognise revenue only to the extent of the costs incurred until such time that it can

reasonably measure the outcome of the performance obligation.For performance obligations satisfied at a certain point in time the company shall recognises

revenue at the point when the customer obtains control of the relevant goods or services. To

determine the point in time at which a customer obtains control of a promised goods or

services the company shall consider requirements as follows:

(a) The company has a present right to payment for the promised goods or services and the

customer is presently obliged to pay for that;

(b) The company has transferred the legal title of the goods to the customer that is the

customer has the legal title to the goods;

(c) The company has transferred physical possession of the goods to the customer that is the

customer has taken possession of the goods;

116Bengang Steel Plates Co. Ltd. Interim Report 2026

(d) The company has transferred the significant risks and rewards of ownership of the goods

to the customer that is the customer has the significant risks and rewards of ownership of the

goods;

(e) The customer has accepted the promised goods or services.The Company determines whether it is the principal or agent when engaging in a transaction

based on whether it has control over the goods or services before transferring them to the

customer. If the Company is able to control the goods or services before transferring them to

the customer the Company is the principal and recognizes revenue based on the total

consideration received or receivable; otherwise the Company is the agent and recognizes

revenue based on the amount of commissions or fees it expects to be entitled to receive.

(2) The specific criteria of revenue recognition and measurement

Commodity sales contracts between companies and customers usually only include

performance obligations for the transfer of steel and other commodities. This type of

performance obligation is a performance obligation performed at a certain point in time. The

Company recognizes revenue when the customer obtains control of the relevant goods or

services. When judging whether the customer has obtained control of goods or services the

company considers the following signs:

The company obtains the current right of collection of receivables the legal ownership of the

goods is transferred to the customer the physical assets of the goods are transferred to the

customer the company transfers the main risks and rewards of the ownership of the goods to

the customer and the customer has accepted the goods.

(25) Contract costs

Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.If the costs incurred in fulfilling a contract with a customer are not within the scope of

another Standard for example Inventories Property Plant and Equipment or Intangible

Assets the company shall recognise an asset from the costs incurred to fulfil a contract only

if those costs meet all of the following criteria:

(a) the costs relate directly to a contract or to an expected contract;

(b) the costs generate or enhance resources of the Company that will be used in satisfying

performance obligations in the future; and

(c) the costs are expected to be recovered.The company shall recognise as an asset the incremental costs of obtaining a contract with a

customer if the company expects to recover those costs.

117Bengang Steel Plates Co. Ltd. Interim Report 2026

An asset recognised in accordance with contract costs shall be amortised in consistent with

the transfer to the customer of the goods or services to which the asset relates. The company

may recognise the incremental costs of obtaining a contract as an expense when incurred if

the amortisation period of the asset is one year or less.The company shall recognise an impairment loss in profit or loss to the extent that the

carrying amount of an asset related to contract assets exceeds:

(a) the remaining amount of consideration that the company expects to receive in exchange

for the goods or services to which the asset relates; less

(b) the costs that relate directly to providing those goods or services and that have not been

recognised as expenses.The company shall recognise in profit or loss a reversal of some or all of an impairment loss

previously recognised when the impairment conditions no longer exist or have improved. The

increased carrying amount of the asset shall not exceed the carrying amount that if no

impairment loss had been recognised previously.

(26) Government Subsidies

1. Types

A government subsidy means the monetary or non-monetary assets obtained free of charge

by the Company from the government. Government subsidies consist of the government

subsidies pertinent to assets and government subsidies pertinent to income.Government subsidies related to assets are government subsidies whose primary

condition is that an entity qualifying for them should purchase construct or otherwise

acquire long-term assets. The government subsidies related to incomes refers to

government subsidies other than those related to assets.

2. Recognition

Government subsidies are recognized when the Company is able to meet the conditions

attached to them and is able to receive them.

3. Accounting treatment

Government subsidies related to assets shall be recognized by deducting the subsidies at

the carrying amount of the assets or recognized as deferred income. Subsidies that

recognized as deferred income shall be recognized in profit or loss on a systematic basis

over the periods during the useful lives of the relevant assets (Subsidies related to daily

activities should be recorded in Other Income. Subsidies that unrelated to daily

activities should be recorded in Non-operating Income).The government subsidies related to incomes to compensate future expenses shall be

recognized as deferred income and transferred to current profit or loss (Subsidies related

to daily activities should be recorded in Other Income. Subsidies that unrelated to daily

activities should be recorded in Non-operating Income) in the period during which the

expenses compensation is recognized or deduct relevant cost or loss. Government

subsidies to compensate expenses or losses already incurred shall be recognized in

118Bengang Steel Plates Co. Ltd. Interim Report 2026

current profit and loss (Subsidies related to daily activities should be recorded in Other

Income. Subsidies unrelated to daily activities should be recorded in Non-operating

Income) or deduct relevant cost or loss.The policy discount loans obtained by the company are divided into the following two

situations and are separately accounted for:

(a) The government allocates discounted funds to the loan bank and the loan bank

provides loans to the company at a policy preferential interest rate. The preferential

interest rate is used to calculate the relevant borrowing costs.(b) If the government directly allocates the discounted funds to the company the

company will offset the relevant borrowing costs with the corresponding discounts

directly accounted for the current profit or loss or recognized as deferred income.

(27) Deferred tax assets and deferred tax liabilities

Income tax includes current income tax and deferred income tax. Except for income tax

arising from business combinations and transactions or events directly recorded in owners'

equity (including other comprehensive income) the Company records current income tax

and deferred income tax in current profit or loss.Deferred income tax assets and deferred income tax liabilities are calculated and confirmed

based on the difference (temporary difference) between the tax base of assets and liabilities

and their book value.An enterprise shall recognize the deferred income tax assets arising from a deductible

temporary difference to the extent of the amount of the taxable income which it is most

likely to be obtained and which can be deducted from the deductible temporary difference.As for any deductible loss or tax deduction that can be carried forward to the next year the

corresponding deferred income tax assets shall be determined to the extent that the amount

of future taxable income to be offset by the deductible loss or tax deduction to be likely

obtained.All taxable temporary differences shall be recognized as deferred tax liabilities with certain

limited exceptions.Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:

- Initial recognition of goodwill;

- A transaction or event that is neither a business combination nor affects accounting profit

and taxable income (or deductible loss) when it occurs and the assets and liabilities

initially recognized do not result in equal taxable temporary differences and deductible

temporary differences.For taxable temporary differences related to investments in subsidiaries associates and joint

ventures deferred income tax liabilities are recognized unless the company can control the

timing of the reversal of the temporary differences and the temporary differences are likely

not to be transferred back in the foreseeable future. For deductible temporary differences

related to investments in subsidiaries associates and joint ventures when the temporary

differences are likely to be reversed in the foreseeable future and are likely to be used to

deduct the taxable income of deductible temporary differences in the future income tax

assets are recognized.At the balance sheet date deferred income tax assets and deferred income tax liabilities are

measured at the applicable tax rate during the period when the relevant assets are expected

to be recovered or the relevant liabilities are expected to be recovered in accordance with

the provisions of the tax law.

119Bengang Steel Plates Co. Ltd. Interim Report 2026

At the balance sheet date the company reviews the book value of deferred income tax assets.If it is probable that sufficient taxable income cannot be obtained in the future to offset the

benefits of deferred income tax assets the book value of the deferred income tax assets shall

be written down. When it is possible to obtain sufficient taxable income the reduced

amount shall be reversed.When the Company has the statutory right to offset and intend to offset or obtain assets and

pay off liabilities at the same time the current income tax assets and current income tax

liabilities are presented at the net amount after offsetting.An entity shall offset deferred tax assets and deferred tax liabilities if and only if: (a) the

entity has a legally enforceable right to set off current tax assets against current tax

liabilities; and (b) deferred income tax assets and deferred income tax liabilities are related

to income taxes levied by the same tax collection and administration department on the

same taxpayer or to different taxpayers but in each future period of significant deferred

income tax assets and liabilities reversal the taxpayers involved intend to settle the current

income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the

same time.

(28) Leases

Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee

within a certain period of time to obtain consideration.On the starting date of the contract the company assesses whether the contract is a lease or

contains a lease. If the contract conveys the right to control the use of an identified asset for a

period of time in exchange for consideration the contract is or contains a lease.For a contract that contains a lease component and one or more additional lease or non-lease

components a lease shall allocate the consideration in the contract to each lease component

on the basis of the relative stand-alone price of the lease component and the aggregate

stand-alone price of the non-lease components.

1. The company as the lessee

(1) Right-of-use assets

On the start date of the lease term the company recognizes the right-of-use asset for leases

other than short-term leases and low-value asset leases. Right-of-use assets are initially

measured at cost.This cost includes:

The initial measurement amount of the lease liability;

If there is a lease incentive for the lease payment paid on or before the start of the

lease term the relevant amount of the lease incentive already enjoyed shall be

deducted;

The initial direct expenses incurred by the company;

The company expects to incur costs for dismantling and removing leased assets

restoring the site where leased assets are located or restoring leased assets to the

120Bengang Steel Plates Co. Ltd. Interim Report 2026

state agreed upon in the lease terms but does not include the costs incurred for the

production of inventory.The company uses the straight-line method to depreciate the right-of-use assets. If it can be

reasonably determined that the ownership of the leased asset will be obtained at the end of

the lease term the company shall depreciate the leased asset during the remaining useful life;

otherwise the leased asset will be depreciated during the shorter period of the lease term and

the remaining useful life of the leased asset .The company determines whether the right-of-use asset has been impaired in accordance with

the principles described in "3. (19) Long-term asset impairment" in this note and conducts

accounting treatment for the identified impairment loss.

(2) Lease liabilities

At the beginning of the lease term the company recognizes lease liabilities for leases other

than short-term leases and leases of low-value assets. Lease liabilities are initially measured

based on the present value of the payments that are not paid at that date. Lease payments

include:

1) Fixed payment (including in-substance fixed payment) less any lease incentives

receivable;

2) Variable lease payments that depend on an index or a ratio;

3) Amounts expected to be payable by the lease under residual value guarantees;

4) The exercise price of the purchase option if the lease is reasonably certain to exercise that

option;

5) Payments of penalties for terminating the lease if the lease term reflects the lessee

exercising an option to terminate the lease;

The company uses the interest rate implicit in the lease as the discount rate but if the interest

rate implicit in the lease cannot be reasonably determined the company's incremental

borrowing interest rate is used as the discount rate.The company calculates the interest expense of the lease liability during each period of the

lease term according to a fixed periodic interest rate and includes it in the current profit and

loss or the cost of related assets.Variable lease payments that are not included in the measurement of lease liabilities are

included in the current profit and loss or the cost of related assets when they occur.After the start of the lease term if the following circumstances occur the company

121Bengang Steel Plates Co. Ltd. Interim Report 2026

re-measures the lease liability and adjusts the corresponding right-of-use asset. If the book

value of the right-of-use asset has been reduced to zero but the lease liability still needs to be

further reduced the difference shall be included in the current profit and loss:

* When the evaluation result or actual exercise situation of the purchase option renewal

option or termination option changes the company remeasures the lease liability based on the

present value calculated by the lease payment after the change and the revised discount rate;

* When the actual fixed payment changes the expected payable amount of the guarantee

residual value changes or the index or ratio used to determine the lease payment changes the

company calculates the present value based on the changed lease payment and the original

discount rate to remeasure the lease liability. However if changes in lease payments originate

from changes in floating interest rates the revised discount rate is used to calculate the

present value.

(3) Short-term leases and low-value asset leases

The company chooses not to recognize right-of-use assets and lease liabilities for short-term

leases and low-value asset leases and calculates the relevant lease payments in the current

profit and loss or related asset costs on a straight-line basis during each period of the lease

term. Short-term lease refers to a lease that does not include purchase options for a lease

period not exceeding 12 months at the beginning of the lease period. Low-value asset leasing

refers to a lease with a lower value when a single leased asset is a new asset. If the company

subleases or expects to sublease the leased assets the original lease is not a low-value asset

lease.

(4) Lease modifications

The lease shall account for a lease modification as a separate lease if both:

The modification increases the scope of the lease by adding the right to use one or

more underlying assets; and

the consideration for the lease increases by an amount commensurate with the

stand-alone price for the increase in scope and any appropriate adjustment to that

stand-alone price to reflect the circumstances of the particular contract.For a lease modification that is not accounted for as a separate lease at the effective date of

the lease modification a lessee shall allocate the consideration in the modified contract

determine the lease term of the modified lease and remeasure the lease liabilities by

122Bengang Steel Plates Co. Ltd. Interim Report 2026

discounting the revised lease payments using a revised discount rate.For a lease modification that is not accounted for as a separate lease the lessee shall account

for the remeasurement of the lease liabilities by decreasing the carrying amount of the

right-of-use assets to reflect the partial or full termination of the lease for lease modifications

that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or

loss relating to the partial or full termination of the lease; or by making a corresponding

adjustment to the right-of-use asset for all other lease modifications.

2. The company as the lessor

On the commencement date of the lease the company divides the lease into finance lease and

operating lease. Finance lease refers to a lease in which almost all the risks and rewards

related to the ownership of the leased asset are transferred regardless of whether the

ownership is ultimately transferred. Operating leases refer to leases other than financial

leases. When the company acts as a sublease lessor it classifies subleases based on the

right-of-use assets generated from the original lease.

(1) Accounting treatment of operating leases

The lease receipts of operating leases are recognized as rental income in each period of the

lease term according to the straight-line method. The company capitalizes the initial direct

costs incurred related to operating leases and allocates them to the current profit and loss on

the same basis as the recognition of rental income during the lease term. Variable lease

payments that are not included in the lease receipts are included in the current profit and loss

when they actually occur.

(2) Accounting treatment of finance leasing

On the start date of the lease the company recognizes the finance lease receivables for the

finance lease and terminates the recognition of the finance lease assets. When the company

initially measures the finance lease receivables the net lease investment is taken as the entry

value of the financial lease receivables. The net lease investment is the sum of the

unguaranteed residual value and the present value of the lease payment not yet received at the

beginning of the lease term discounted at the interest rate implicit in the lease.The company calculates and recognizes the interest income for each period of the lease term

based on a fixed periodic interest rate. The derecognition and impairment of finance lease

receivables shall be accounted for in accordance with "3. (10) Financial Instruments" in this

Note.Variable lease payments that are not included in the measurement of the net lease investment

123Bengang Steel Plates Co. Ltd. Interim Report 2026

are included in the current profit or loss when they actually occur.A lessor shall account for a modification to a finance lease as a separate lease if both:

* The modification increases the scope of the lease by adding the right to use one or more

underlying assets;

* The consideration for the lease increases by an amount commensurate with the stand-alone

price for the increase in scope and any appropriate adjustments to that stand-alone price to

reflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease a lessor

shall account for the modification as follows:

* If the lease would have been classified as an operating lease had the modification been in

effect at the inception date the lessor shall account for the lease modification as a new lease

from the effective date of the modification; and measure the carrying amount of the

underlying assets as the net investment in the lease immediately before the effective date of

the lease modification.* If the change takes effect on the lease start date the lease will be classified as a financial

lease and the company will perform accounting treatment in accordance with the policy of

“3. (10) Financial Instruments” in this Note on the modification or re-negotiation of the

contract.

3. Sale and leaseback transaction

The company evaluates and determines whether the asset transfer in the sale and leaseback

transaction is a sale in accordance with the principles described in "3. (24) Revenue" of this

Note.

(1) As the lessee

If the transfer of an asset in the sale and leaseback transaction is a sale the company as the

lessee measures the right-of-use asset arising from the leaseback at the proportion of the

previous carrying amount of the asset that relates to the right-of-use retained by the lessee

and recognize only the amount of any gain or loss that relates to the rights transferred to the

lessor.For details on the subsequent measurement of right-of-use assets and lease liabilities and

lease changes after the commencement date of the lease term please refer to Note 3 (28)

Leases 1. The Company as Lessee. When subsequently measuring the lease liabilities arising

from a sale and leaseback the Company determines the lease payments or the modified lease

payments in a manner that does not result in the recognition of gains or losses related to the

124Bengang Steel Plates Co. Ltd. Interim Report 2026

right of use acquired through the leaseback.If the asset transfer in the sale and leaseback transaction does not belong to the sale the

company as the lessee continues to recognize the transferred assets and at the same time

recognize a financial liability equal to the transfer proceeds. For the accounting treatment of

financial liabilities please refer to "3. (10) Financial Instruments" in this note.

(2) As a lessor

If the asset transfer in the sale and leaseback transaction is a sale the company acts as the

lessor to account for the purchase of the asset and the asset lease is accounted for in

accordance with the aforementioned "2. The company as the lessor" policy; in the sale and

leaseback transaction If the transfer of assets is not a sale the company as the lessor does not

recognize the transferred assets but recognizes a financial asset equal to the transfer proceeds.For the accounting treatment of financial assets please refer to "3. (10) Financial

Instruments" in this note.

(29) Debt restructuring

1. The company as the creditor

The Company terminates the recognition of claims when the contractual right to collect cash

flows from the claims terminates. If debt is restructured by using assets to pay off debts or by

converting debts into equity instruments the company will recognize the relevant assets

when they meet their definition and recognition conditions.If debt restructuring is carried out by repaying debts with assets the transferred non-financial

assets shall be measured at cost at initial recognition.The Company shall recognize and measure the restructured claims in accordance with "3. (10)

Financial Instruments" of this Note.When multiple assets are used to settle debts or for debt restructuring the Company shall first

recognize and measure the financial assets acquired and the restructured claims in accordance

with Note 3. (10) Financial Instruments. It shall then allocate the net amount of the fair value

of the waived claims after deducting the recognized amounts of the acquired financial assets

and the restructured claims in accordance with the fair value ratio of the various assets other

than the acquired financial assets and on this basis determine the cost of each asset

separately in accordance with the above method. The difference between the fair value and

the carrying amount of the waived claim should be included in the current profit and loss.

2. The company as the debtor

The Company derecognizes a debt when the present obligation for the debt is discharged.

125Bengang Steel Plates Co. Ltd. Interim Report 2026

If debt restructuring is carried out by settling debts with assets the Company shall terminate

the recognition when the relevant assets and the debts settled meet the conditions for

termination of recognition and the difference between the book value of the debts settled and

the book value of the transferred assets shall be included in the current profit and loss.In case of debt restructuring by converting debt into equity instruments the Company shall

derecognize the debts paid when they meet the derecognition conditions. Equity instrument

shall be measured at fair value at initial recognition. If the fair value of an equity instrument

cannot be measured reliably it is measured at the fair value of the debt settled. The difference

between the carrying amount of the debt settled and the amount recognized as an equity

instrument should be recognized in the current period's profit or loss.If debt restructuring is carried out by modifying other terms the Company shall recognize

and measure the restructured debt in accordance with “3. (10) Financial Instruments” of this

Note.If multiple assets are used to repay debts or a combination is used to restructure debt the

company shall confirm and measure equity instruments and restructured debts in accordance

with the aforementioned methods. The difference between the carrying amount of the debt

settled and the sum of the carrying amount of the transferred assets and the recognized

amount of the equity instruments and restructured debts is included in the current period's

profit and loss.

(30) Other Significant Accounting Policies and Accounting Estimates

Major accounting estimates and judgments

When preparing financial statements the Company's management needs to use estimates

and assumptions which will affect the application of accounting policies and the amount of

assets liabilities income and expenses. Actual conditions may differ from these estimates.The management of the company continuously evaluates the judgment of key assumptions

and uncertainties involved in the estimation and the impact of changes in accounting

estimates will be recognized in the current and future periods.The main uncertainties in the estimated amount are as follows:

1. Measurement of expected credit losses

The company calculates the expected credit loss through the default risk exposure and the

expected credit loss rate and determines the expected credit loss rate based on the default

126Bengang Steel Plates Co. Ltd. Interim Report 2026

probability and the default loss rate. When determining the expected credit loss rate the

company uses internal historical credit loss experience and other data and adjusts the

historical data in combination with current conditions and forward-looking information.When considering forward-looking information the indicators used by the Company

include the risk of economic downturn the expected increase in unemployment rate

changes in the external market environment technological environment and customer

conditions. The Company regularly monitors and reviews assumptions related to the

calculation of expected credit losses.

2. Inventory ImpairmentAs mentioned in note 3 (12) Inventory under “3 Significant accounting policies andaccounting estimates” the Company regularly estimates the net realizable value of the

inventory and recognizes the difference in inventory cost higher than the net realizable

value. When estimating the net realizable value of inventory the Company considers the

purpose of holding the inventory and uses the available information as the basis for

estimation including the market price of the inventory and the Company's past operating

costs. The actual selling price completion cost sales expenses and taxes of the inventory

may change according to changes in market sales conditions production technology or the

actual use of the inventory. Therefore the amount of inventory depreciation reserve may

change according to the above reasons. Adjustments to the inventory impairment will affect

the current profit and loss.

3. Impairment of other assets except inventory and financial assets

As mentioned in note 3 (19) Long-term Asset Impairment the company performs an

impairment assessment on assets other than inventory and financial assets on the balance

sheet date to determine whether the recoverable amount of the asset has fallen to a lower

level than its book value. If the situation shows that the book value of the long-term assets

may not be fully recovered the relevant assets will be deemed to be impaired and the

impairment loss will be recognized accordingly.The recoverable amount is the higher of the net value of the fair value of the asset (or asset

group) minus the disposal expenses and the present value of the asset (or asset group) 's

expected future cash flow. Because the Company cannot reliably obtain the public market

price of assets (or asset groups) and cannot reliably and accurately estimate the fair value

of assets. Therefore the Company regards the present value of the expected future cash

flow as the recoverable amount. When estimating the present value of future cash flows it

is necessary to make a significant judgment on the output selling price related operating

costs of the products produced by the asset (or asset group) and the discount rate used in

127Bengang Steel Plates Co. Ltd. Interim Report 2026

calculating the present value. The Company will use all available relevant information

when estimating the recoverable amount including the prediction of output selling price

and related operating costs based on reasonable and supportable assumptions.

4. Depreciation and amortization of assets such as fixed assets and intangible assets

As described in note 3 (15) Fixed Assets and note 3 (18) Intangible Assets the company

shall accrue depreciation for the fixed assets and amortization for intangible assets within

the useful life after considering their residual value. The company regularly reviews the

useful life of related assets to determine the amount of depreciation and amortization

expenses to be included in each reporting period. The useful life of assets is determined by

the company based on past experience with similar assets and in combination with

anticipated technological changes. If the previous estimates change significantly the

depreciation and amortization expenses will be adjusted in the future.

5. Deferred tax assets

When it is estimated that sufficient taxable income can be obtained in the future to use the

unrecovered tax losses and deductible temporary differences the relevant deferred tax

assets are calculated and confirmed on the basis of the applicable income tax rate during the

period when the asset is expected to be recovered and the amount of taxable income is

limited to deductible tax losses and deductible temporary differences likely to be obtained

by the Company. The Company needs to use judgment to estimate the time and amount of

future taxable income and make reasonable estimates and judgments on the future

applicable income tax rate according to the current tax policy and other related policies to

determine the deferred tax assets that should be recognized. If the time and amount of

profits actually generated in the future period or the actual applicable income tax rate are

different from the management's estimate the difference will have an impact on the amount

of deferred tax assets.

(31) Criteria of Materiality

Items Materiality Criteria

Significant The company considers accounts receivables exceeding RMB 5 million as

Receivables significant accounts receivables.Significant Accounts The company considers accounts payables exceeding RMB 5 million as

Payables significant accounts payables.Significant Other The company considers other payables exceeding RMB 5 million as

Payables significant other payables.Significant The company regards the projects with the highest amount transferred to

128Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Materiality Criteria

Construction in fixed assets or the top 10 projects with the final balance of the current

Progress period and the amount exceeding RMB 50 million as significant

construction in progress.Significant

The Company regards development expenditures exceeding RMB 5 million

Development

as significant development expenditures.Expenditure

Significant Joint The company considers joint ventures or associated companies with an

Ventures or Associated ending balance of more than RMB 100 million as important joint ventures

Companies or associated companies.Subsidiaries whose total assets/total revenue/total profit exceed 15% of the

Significant

group's total assets/total revenue/total profit are considered as significant

Subsidiaries

subsidiaries.

(32) Change of significant accounting policy and accounting estimate

1. Change of major accounting policy during this reporting period

(1) Implementation of Interpretation No. 19 of the Accounting Standards for Business

EnterprisesOn December 19 2025 the Ministry of Finance issued the “Interpretation No. 19 ofAccounting Standards for Business Enterprises” (Cai Kuai [2025] No. 32 hereinafter

referred to as "Interpretation No. 19") which became effective on January 1 2026.A. Accounting Treatment of Compensatory Assets in Business Combinations Not Under

Common Control

As explained in Interpretation No. 19 in a business combination not involving enterprises

under common control the seller and the purchaser may enter into a contractual

arrangement whereby the seller compensates the purchaser for certain contingencies of the

acquiree or for uncertainties regarding specific assets or liabilities resulting in the

purchaser acquiring a compensatory asset.At the same time the acquirer recognizes the indemnified item in its consolidated financial

statements it shall recognize an indemnification asset measured on the same basis as the

indemnified item subject to management's assessment of its recoverability with any

amount not expected to be recovered deducted from the carrying amount of the

indemnification asset. At each subsequent reporting date the acquirer shall measure the

indemnification asset on the same basis as the indemnified item taking into account any

contractual limitations on the indemnified amount. If the carrying amount of the

129Bengang Steel Plates Co. Ltd. Interim Report 2026

indemnified item changes the carrying amount of the indemnification asset shall be

adjusted accordingly with the corresponding impact recognized in investment income. For

an indemnification asset that is not subsequently measured at fair value management's

assessment of the recoverability of the indemnification asset shall be considered separately

and any amount not expected to be recovered shall be recognized in investment income.When the acquirer collects sells or otherwise loses the right to the indemnification asset it

shall derecognize the asset. Any difference between the proceeds received and the carrying

amount of the indemnification asset shall be recognized in investment income.In its separate financial statements the acquirer shall recognize an indemnification asset

only when the recognition criteria for a contingent asset are met (i.e. when the receipt of

economic benefits is virtually certain and the amount can be measured reliably) and

simultaneously reduce the initial investment cost of the long-term equity investment. At

each subsequent balance sheet date the acquirer shall measure the indemnification asset in

accordance with Accounting Standards for Business Enterprises No. 13 — Contingencies

taking into account both contractual limitations on the indemnified amount and

management's assessment of the recoverability of the indemnification asset and recognize

any amount not expected to be recovered in investment income.Upon initial application an enterprise shall make retrospective adjustments for

indemnification assets existing on the effective date; for indemnification assets that had

been recovered sold or for which rights were otherwise lost prior to the effective date no

retrospective adjustment is required.The implementation of this interpretation had no material impact on the Company.B. Accounting treatment of related capital reserve upon disposal of a subsidiary originally

acquired through business combination under common control

Interpretation No. 19 stipulates that when an enterprise disposes of a subsidiary originally

acquired through a business combination under common control and loses control

regardless of whether the counterparty is a related party or a non-related party the capital

reserve adjusted on the original combination date—arising from the difference between the

initial investment cost of the long-term equity investment and the carrying amount of the

combination consideration—shall not be reclassified to profit or loss for the current period

or retained earnings in both the separate and consolidated financial statements.The enterprise shall apply retrospective adjustment upon initial implementation. The

adoption of this Interpretation had no significant impact on the Company.C. Derecognition of financial liabilities settled through electronic payment systems

Interpretation No. 19 stipulates that when an enterprise settles a financial liability (or a part

thereof) in cash using an electronic payment system it may elect to derecognize the

130Bengang Steel Plates Co. Ltd. Interim Report 2026

financial liability prior to the settlement date only if the enterprise has initiated a payment

instruction and concurrently satisfies all of the following conditions: 1) The enterprise has

no practical ability to withdraw stop or cancel the payment instruction; 2) The enterprise

has no practical ability to access the cash to be used to settle the payment instruction; and 3)

The settlement risk associated with the electronic payment system is insignificant. For

example the electronic payment system executes the payment instruction in accordance

with standard administrative processes and the time interval between meeting the

aforementioned two conditions and delivering the cash to the counterparty is very short. If

the execution of the payment instruction depends on the enterprise's ability to deliver cash

on the settlement date the settlement risk associated with the electronic payment system

shall not be considered insignificant.Upon initial implementation an enterprise shall apply retrospective adjustment recognizing

the cumulative effect as an adjustment to retained earnings and other related financial

statement line items as of January 1 2026 without the need to restate comparative financial

statements for prior periods. The Company has elected to adopt the aforementioned

accounting policy and applies it to all settlements processed through the same electronic

payment system. The adoption of this Interpretation had no significant impact on the

Company.D. Assessment and Related Disclosures of Contractual Cash Flow Characteristics of

Financial Assets

Interpretation No. 19 stipulates that when an enterprise assesses whether the contractual

cash flows of a financial asset are consistent with a basic lending arrangement it may need

to consider the different elements of interest. The assessment of interest shall focus on what

the enterprise is being compensated for rather than the amount of compensation received

although the latter may indicate that the enterprise is receiving compensation for elements

other than basic lending risks and costs. If the contractual cash flows are indexed to a

variable that is not a basic lending risk or cost (such as the value of equity instruments or

commodity prices) or if the contractual cash flows represent a share of the debtor’s revenue

or profit such contractual cash flows are inconsistent with a basic lending arrangement.Where the contractual cash flows arising from a contingent feature are consistent with a

basic lending arrangement both before and after the change in contractual cash flows

(regardless of the probability of the change occurring) the enterprise is still required to

assess the nature of the contingent event. If the nature of the contingent event is directly

related to a change in basic lending risks and costs and the direction of the change in

contractual cash flows is the same as the direction of the change in basic lending risks and

costs the contractual cash flows generated by the relevant financial asset represent solely

payments of principal and interest on the principal amount outstanding (SPPI).

131Bengang Steel Plates Co. Ltd. Interim Report 2026

If the nature of the contingent event is not directly related to a change in basic lending risks

and costs (e.g. a loan where the interest rate is adjusted downward by a contractually

specified number of basis points upon the borrower achieving contractually agreed carbon

emission reductions) the contractual cash flows generated by the relevant financial asset

represent solely payments of principal and interest on the principal amount outstanding only

if in all possible contractual scenarios the resulting contractual cash flows are not

significantly different from the contractual cash flows that would arise from a financial

instrument with identical contractual terms but without such a contingent feature.Upon initial implementation an enterprise shall apply retrospective adjustment recognizing

the cumulative effect as an adjustment to retained earnings and other related financial

statement line items as of January 1 2026 without restating comparative financial

statements for prior periods. The adoption of this Interpretation had no significant impact

on the Company.E. Disclosures of Equity Instruments Designated at Fair Value through Other

Comprehensive Income

Interpretation No. 19 stipulates that an enterprise shall disclose at a minimum by class the

fair value at the end of the reporting period of equity instrument investments designated as

at fair value through other comprehensive income as well as the changes in fair value

during the reporting period. An enterprise may provide further disclosures such as on an

individual investment/item basis in accordance with the principle of materiality and its

actual circumstances. Among these the fair value changes relating to investments

derecognized during the reporting period and the fair value changes relating to investments

held at the end of the reporting period shall be disclosed separately. The enterprise shall

also disclose the transfer of cumulative gains or losses recognized in equity related to

investments derecognized during the reporting period.The Company discloses the relevant information of other equity instrument investments in

accordance with these requirements. The adoption of this Interpretation had no significant

impact on the Company's financial position and operating results.

(2) Implementation of Accounting Standards for Business Enterprises Interpretation

No. 20

On June 17 2026 the Ministry of Finance issued the Accounting Standards for Business

Enterprises Interpretation No. 20 (Cai Kuai [2026] No. 7 hereinafter referred to as

"Interpretation No. 20") which came into effect on the date of promulgation.A. Assessment of Contractual Cash Flow Characteristics of Financial Assets

132Bengang Steel Plates Co. Ltd. Interim Report 2026

Interpretation No. 20 sets forth specific classification requirements on whether

"non-recourse financial assets" and "contractually linked instruments" satisfy the criterion

that contractual cash flows represent solely payments of principal and interest on the

principal amount outstanding.For a financial asset if an enterprise's ultimate contractual right to receive cash flows is

restricted to the cash flows from specified assets the financial asset possesses non-recourse

characteristics in which case the primary risk faced by the enterprise depends on the

performance of the specified assets rather than the credit risk of the debtor. For

non-recourse financial assets when determining whether they satisfy the contractual cash

flow characteristics of solely payments of principal and interest on the principal amount

outstanding (hereinafter referred to as the "SPPI contractual cash flow characteristics") the

enterprise shall evaluate the connection between the specified underlying assets or their

cash flows and the contractual cash flows of the financial asset (i.e. a "look-through"

assessment) and consider how this connection is affected by other contractual

arrangements such as subordinated debt or equity instruments issued by the debtor. If the

contractual terms of the financial asset give rise to any other cash flows or limit the cash

flows in a manner inconsistent with payments representing principal and interest the

financial asset does not satisfy the SPPI contractual cash flow characteristics. Whether the

underlying assets are financial or non-financial assets does not affect the assessment of the

aforementioned contractual cash flow characteristics.In certain non-recourse transactions the issuer may use multiple contractually linked

instruments (i.e. multiple tranches) to prioritize payments to holders of the financial assets.Each tranche has a specified subordination ranking that determines the order in which cash

flows generated by the underlying pool of financial instruments are allocated to that tranche

by the issuer thereby creating a "waterfall payment structure." The prioritization of

payments to different tranche holders established through such a "waterfall payment

structure" creates credit risk concentration and results in a disproportionate allocation of

cash shortfalls from the underlying assets among the different tranche holders; a holder of a

given tranche is entitled to receive payments of principal and interest only if the issuer

generates sufficient cash flows to satisfy payments on more senior tranches. In such

transactions holders of each tranche shall apply the classification requirements for

contractually linked instruments rather than those for non-recourse financial assets. One of

the conditions for a contractually linked instrument to meet the SPPI contractual cash flow

characteristics is that its underlying pool must contain one or more instruments whose

contractual cash flows represent solely payments of principal and interest. The

aforementioned underlying assets may include financial instruments that are not subject to

the classification requirements of Accounting Standards for Business Enterprises No. 22 —

Recognition and Measurement of Financial Instruments but whose contractual cash flows

133Bengang Steel Plates Co. Ltd. Interim Report 2026

are equivalent to solely payments of principal and interest on the principal amount

outstanding (e.g. certain lease receivables).Upon initial implementation an enterprise shall apply retrospective adjustment recognizing

the cumulative effect as an adjustment to retained earnings and other related financial

statement line items as of January 1 2026 without restating comparative financial

statements for prior periods. The adoption of this Interpretation had no significant impact

on the Company.B. Accounting Treatment and Related Disclosures When a Currency Lacks Exchangeability

Interpretation No. 20 stipulates that a currency is exchangeable into another currency if an

enterprise is able to exchange that currency into the other currency within a specified

timeframe through a market or exchange mechanism that creates enforceable rights and

obligations in the exchange transaction. An enterprise shall assess whether a currency is

exchangeable into another currency on the measurement date for a specific purpose. If the

enterprise is able to obtain no more than an insignificant amount of the other currency on

the measurement date for the specific purpose the currency is not exchangeable into the

other currency. Even if the other currency can be exchanged back into that currency the

enterprise may still determine that the currency is not exchangeable into the other currency.When a currency is not exchangeable into another currency (lacks exchangeability) the

enterprise shall estimate the spot exchange rate at the measurement date so that it faithfully

reflects the rate at which an orderly exchange transaction would take place at the

measurement date between market participants under prevailing economic conditions.Upon initial application an enterprise is not required to restate comparative financial

statements for prior periods and shall apply the following transition provisions:

(i) When an enterprise reports foreign currency transactions in its functional currency and

determines that the relevant foreign currency lacks exchangeability into its functional

currency it shall translate affected foreign currency monetary items and non-monetary

items measured at fair value in a foreign currency using the estimated spot exchange rate as

at the date of initial application. The effect of initially applying this Interpretation shall be

adjusted against opening retained earnings. The adoption of this Interpretation had no

significant impact on the Company.(ii) When the presentation currency used by an enterprise is different from its functional

currency or when an enterprise translates the financial position and operating results of a

foreign operation and it is determined that the enterprise's functional currency or the

foreign operation's functional currency lacks exchangeability into the presentation currency

the enterprise shall translate the affected assets and liabilities using the estimated spot

exchange rate as at the date of initial application; if the functional currency is the currency

of a hyperinflationary economy the affected equity items shall also be translated using the

134Bengang Steel Plates Co. Ltd. Interim Report 2026

estimated spot exchange rate as at the date of initial application. The effect of initially

applying this Interpretation shall be recognized as an adjustment to the cumulative amount

of exchange differences on translation of financial statements (recognized as a separate

component of equity). The adoption of this Interpretation had no significant impact on the

Company.

(3) Implementation of Accounting Standards for Business Enterprises No. 25 —

Insurance Contracts (Revised in 2020)

On December 24 2020 the Ministry of Finance issued the revised Accounting Standards

for Business Enterprises No. 25 — Insurance Contracts (Cai Kuai [2020] No. 20

hereinafter referred to as the "New Insurance Contracts Standard"). Enterprises dually listed

domestically and overseas as well as enterprises listed overseas that prepare financial

statements in accordance with International Financial Reporting Standards (IFRS) or

Accounting Standards for Business Enterprises have been required to adopt this standard

since January 1 2023; other enterprises applying Accounting Standards for Business

Enterprises shall adopt it starting from January 1 2026.The New Insurance Contracts Standard stipulates that if the accounting treatment of

insurance contracts prior to the date of initial application is inconsistent with the provisions

of this standard an enterprise shall apply the full retrospective approach. If applying the full

retrospective approach to a group of insurance contracts is impracticable the enterprise

shall apply the modified retrospective approach or the fair value approach; if applying the

modified retrospective approach to a group of insurance contracts is also impracticable the

enterprise shall apply the fair value approach. Where an enterprise applies retrospective

adjustment it is not required to disclose the adjustment amounts for affected financial

statement line items and earnings per share for the current period and each prior period

presented.The Company has adopted the New Insurance Contracts Standard since January 1 2026.The adoption of this standard had no significant impact on the Company's financial position

and operating results.

2. Change of accounting estimate during the reporting period

There is no significant changes in accounting estimates during the reporting period.

4. Taxes

(1) Major type of taxes and corresponding tax rates

Tax Taxation Method Tax Rate

The balance of output VAT calculated

Value-added Tax (VAT) based on product sales and taxableservices revenue in accordance with the 6% 9% 13%

tax laws after subtracting the deductible

135Bengang Steel Plates Co. Ltd. Interim Report 2026

input VAT of the period

City maintenance and construction tax Based on VAT and business tax actuallypaid 5% 7%

Enterprise income tax Based on taxable income See the table belowfor details

Notes to taxpayers with different corporate income tax rates:

Name of the taxpayers Income tax rate (%)

Bengang Steel Plates Co. Ltd 15

Shanghai Bengang Metallurgy Science and Technology Co. Ltd. 25

Benxi Bengang Steel Sales Co. Ltd. 25

Bengang Posco Cold-rolled Sheet Co. Ltd. 15

Tianjin Bengang Steel & Iron Trading Co. Ltd. 25

Green Gold (Benxi) Renewable Resources Co. Ltd. 25

Yantai Bengang Steel & Iron Sales Co. Ltd. 25

Guangzhou Bengang Steel & Iron Trading Co. Ltd. 25

Dalian Benruitong Automobile Material Technology Co. Ltd. 25

Shenyang Bengang Metallurgical Science and Technology Co. Ltd. 25

North Hengda Logistics Co. Ltd 25

(2) Tax Preference

1. The company has obtained the high-tech enterprise certificate certificate number:

GR202421001555; valid from November 27 2024 to November 27 2027. The company

pays corporate income tax at a reduced rate of 15%.

2. Benxi Posco Cold-Rolled Sheet Co. Ltd. the subsidiary of the Company has obtained

the High-tech Enterprise Certificate certificate number: GR202321001624; valid from

December 20 2023 to December 20 2026. Benxi Steel Posco Cold-Rolled Sheet Co. Ltd.pays corporate income tax at a reduced tax rate of 15%.

3. On December 30 2021 the Ministry of Finance and the State Administration of Taxation

issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive

Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State

Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on

Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive

Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will

be abolished at the same time except for "technical standards and related conditions". The

electricity and heat produced and sold by the Energy Development Branch of Benxi Iron

and Steel Co. Ltd. a branch of the Company are items listed in the "Catalogue of

136Bengang Steel Plates Co. Ltd. Interim Report 2026

Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and

Services" and enjoy the value-added tax refund policy.

4. On December 30 2021 the Ministry of Finance and the State Administration of Taxation

issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive

Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State

Administration of Taxation in 2021). The announcement will take effect on March 1 2022.The original "Notice of the Ministry of Finance and the State Administration of Taxation on

Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive

Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will

be abolished at the same time except for "technical standards and related conditions". Scrap

steel sold by the Company's subsidiary Green Gold (Benxi) Renewable Resources Co.Ltd. is listed in the Catalogue of Value-Added Tax Preferential Rates on Products and

Labour Services Involving Comprehensive Utilisation of Goods and Resources and is

entitled to the value-added tax (VAT) refund-upon-collection policy.

5. On September 3 2023 the Ministry of Finance and the State Administration of Taxation

issued the "Announcement on the VAT Surcharge Deduction Policy for Advanced

Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the

State Administration of Taxation in 2023). From January 1 2023 to December 31 2027

the announcement allows advanced manufacturing enterprises to deduct the payable VAT

by adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co. Ltd.a subsidiary of our company belongs to the advanced manufacturing industry and enjoys

the VAT surplus deduction policy.

137Bengang Steel Plates Co. Ltd. Interim Report 2026

5. Notes to the consolidated financial statements

(1) Cash at bank and on hand

Items 2026/06/30 2025/12/31

Cash on hand

Digital Currency

Cash at bank 780123506.77 92723863.54

Other monetary funds 840931894.73 839920368.84

Funds placed in a finance company account 180060156.04 194746442.77

Total 1801115557.54 1127390675.15

Including：Total amount deposited abroad

Funds deposited overseas with

restrictions on repatriation

Notes: As at 30 June 2026 bank acceptance deposit of RMB 840931894.73 was not recognized as cash and cash

equivalents in the cash flow statement.

(2) Notes receivable

1. Notes receivable disclosed by category

Items 2026/06/30 2025/12/31

Bank acceptance bill 251214825.03 236004720.54

Commercial acceptance bill 638915.35 163755056.29

Total 251853740.38 399759776.83

138Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Notes receivable disclosed by bad debt accrual method

2026/06/302025/12/31

Provision for bad

Carrying amount Provision for bad debts Carrying amount

Items debts

Book value Book value

Bad debts Percentage Bad debts

Amount Percentage (%) Amount Amount Amount

ratio (%) (%) ratio (%)

Provision for bad

debts individually

Provision for bad

debts based on

251853740.38100.00251853740.38399759776.83100.00399759776.83

portfolio of credit

risk characteristics

Total 251853740.38 100.00 251853740.38 399759776.83 100.00 399759776.83

139Bengang Steel Plates Co. Ltd. Interim Report 2026

Provision for bad debts based on portfolio of credit risk characteristics

Portfolio items:

2026/06/30

Items

Notes receivable Provision for bad debts Bad debts ratio (%)

Bank acceptance bill 237996781.65

Commercial acceptance bill 13856958.73

Total 251853740.38

3. The pledged acceptance bill at the year-end

Items Notes receivable pledged at the end of period

Bank acceptance bill 3000000.00

Commercial acceptance bill

Total 3000000.00

4. The amount of notes receivable endorsed over or discounted but not yet matured at the

year-end

Amount terminated at the Amount was not terminated

Items

end of the period at the end of the period

Bank acceptance bill 2687140545.57 107070828.39

Commercial acceptance bill 409848743.59

Total 3096989289.16 107070828.39

(3) Accounts receivable

1. Accounts receivable disclosed by aging

Items 2026/06/30 2025/12/31

Within 1 year (inclusive) 1237771236.07 1149629532.02

1-2 years (inclusive) 33272155.51 42575692.54

2-3 years (inclusive) 37400653.65 2911370.99

3-4 years (inclusive) 2411366.74 27852241.32

4-5 years (inclusive) 27803630.42 556497.21

140Bengang Steel Plates Co. Ltd. Interim Report 2026

Items 2026/06/30 2025/12/31

over 5 years 85595623.69 88417222.29

Subtotal 1424254666.08 1311942556.37

Less: Provision for bad debts 139280081.57 133162099.60

Total 1284974584.51 1178780456.77

141Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Accounts receivable disclosed by the bad debt accrual method

2026/06/302025/12/31

Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts

Bad

Items

Percentage debts Book value Percentage Percentage Book value

Amount Amount Amount Amount

(%) ratio (%) (%)

(%)

Tested for

impairment 48196244.68 3.38 48196244.68 100.00 48196244.68 3.67 48196244.68 100.00

individually

Tested for

impairment 1376058421.40 96.62 91083836.89 6.62 1284974584.51 1263746311.69 96.33 84965854.92 6.72 1178780456.77

by portfolio

Including:

Aging 1376058421.40 96.62 91083836.89 6.62 1284974584.51 1263746311.69 96.33 84965854.92 6.72 1178780456.77

portfolio

Total 1424254666.08 100.00 139280081.57 9.78 1284974584.51 1311942556.37 100.00 133162099.60 10.15 1178780456.77

142Bengang Steel Plates Co. Ltd. Interim Report 2026

Significant accounts receivables tested for impairment individually:

2026/06/302025/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts

amount bad debts ratio

(%)

Benxi Nanfen Xinhe

Metallurgical Furnace 48196244.68 48196244.68 100.00 Discontinued 48196244.68 48196244.68

Material Co. Ltd

Total 48196244.68 48196244.68 48196244.68 48196244.68

Provision for bad debts based on portfolio of credit risk characteristics

Provision for bad debts by portfolio: Aging analysis

2026/06/30

Items

Account Receivable Provision for bad debts Bad debt ratio（%）

Within 1 year

1237771236.0712662114.4489.94

(inclusive)

1-2 years (inclusive) 33272155.51 3327215.55 2.42

2-3 years (inclusive) 37400653.65 7480130.73 2.72

3-4 years (inclusive) 2411366.74 2411366.74 0.18

4-5 years (inclusive) 27803630.42 27803630.42 2.02

over 5 years 37399379.01 37399379.01 2.72

Total 1376058421.40 91083836.89 100.00

3. The provision for bad debts accrued reversed or recovered in the current period

Changes during the current period

Items 2025/12/31 Reversed or Write-off or Other 2026/06/30

Accrued

recovered Write-back changes

Provision

for bad 133162099.60 9408509.78 3290527.81 139280081.57

debts

Total 133162099.60 9408509.78 3290527.81 139280081.57

143Bengang Steel Plates Co. Ltd. Interim Report 2026

4. Accounts receivable has been written off this year

Item Write-off amount

Actual write-off of accounts receivable 3290527.81

5. Top five debtors and contract assets at the end of the period

Accounts Contract

Percentag Provision for

Company receivable as at assets at Total

e (%) bad debts

2026/06/302026/06/30

Angang Group

International

Economic & 849139404.55 849139404.55 59.62 8491394.05

Trade Co. Ltd.Benxi Branch

China

Construction

68882341.7168882341.714.848263798.91

Sixth Engineering

Bureau Co. Ltd.Taicang CIMC

Container

51895088.5051895088.503.64518950.89

Manufacture Co.Ltd.Liaoning

Northern Coal

51413190.7551413190.753.618614347.33

Chemical (Group)

Co. Ltd.Benxi Nanfen

Xinhe

Metallurgical 48196244.68 48196244.68 3.38 48196244.68

Refractories Co.Ltd.Total 1069526270.19 1069526270.19 75.09 74084735.86

144Bengang Steel Plates Co. Ltd. Interim Report 2026

(4) Accounts receivable financing

1. Accounts receivable financing by category

Items 2026/06/30 2025/12/31

Notes Receivable 256934534.14 331321177.27

Total 256934534.14 331321177.27

2. Accounts Receivable Financing Pledged by the Company at Period-End

Item Pledged amount as at the period-end

Notes Receivable 124228068.50

Total 124228068.50

(5) Prepayments

1. Prepayments disclosed by aging

2026/06/302025/12/31

Aging Percentage Percentage

Amount Amount

(%)(%)

Within 1 year

441526961.0297.59304163117.7196.61

(inclusive)

1-2 years (inclusive) 282537.31 0.06 6869069.81 2.18

2-3 years (inclusive) 6869069.73 1.52 3737486.36 1.19

Over 3 years 3738170.25 0.83 56220.18 0.02

Total 452416738.31 100.00 314825894.06 100.00

Notes: There were no outstanding prepayments over 1 year.

2. Top five prepaid companies at the end of the period

Name of the company 2026/06/30 Percentage (%)

Shanxi Coking Coal Group Coal & Coke Sales Co.

73939247.6616.34

Ltd.Shenyang Railway Logistics Center China Railway 70579051.25 15.60

145Bengang Steel Plates Co. Ltd. Interim Report 2026

Name of the company 2026/06/30 Percentage (%)

Shenyang Group Co. Ltd.Angang Group International Economic & Trading

50890155.6511.25

Co. Ltd.Shanxi Coking Coal Group Co. Ltd. 47441001.20 10.49

Angang Group International Economic & Trade Co.

40490602.778.95

Ltd. Benxi Branch

Total 283340058.53 62.63

(6) Other receivables

Items 2026/06/30 2025/12/31

Interest receivables

Dividend receivables

Other receivables 1178776.75 4034061.03

Total 1178776.75 4034061.03

1. Other receivables

(1) Other receivables disclosed by aging

Items 2026/06/30 2025/12/31

Within 1 year (inclusive) 856734.33 1219878.37

1-2 years (inclusive) 209403.23 1320621.74

2-3 years (inclusive) 59754.59 4483668.45

3-4 years (inclusive) 3015068.45 12609103.20

4-5 years (inclusive) 9055306.42 3237069.03

over 5 years 49149280.91 52360468.13

Subtotal 62345547.93 75230808.92

Less: Provision for bad debts 61166771.18 71196747.89

Total 1178776.75 4034061.03

146Bengang Steel Plates Co. Ltd. Interim Report 2026

(2) Disclosed by bad debt accrual method

2026/06/302025/12/31

Carrying amount Provision for bad debts Carrying amount Provision for bad debts

Items

Percentage Bad debts Book value Percentage Bad debts Book value

Amount Amount Amount Amount

(%) ratio (%) (%) ratio (%)

Provision for bad

18192317.0029.1818192317.00100.0018192317.0024.1818192317.00100.00

debts individually

Provision for bad

debts based on 44153230.93 70.82 42974454.18 97.33 1178776.75 57038491.92 75.82 53004430.89 92.93 4034061.03

portfolio

Include: Aging

43837277.3870.3142974454.1898.03862823.2056747273.8075.4353004430.8993.403742842.91

portfolio

Risk-free

315953.550.51315953.55291218.120.39291218.12

portfolio

Total 62345547.93 100.00 61166771.18 98.11 1178776.75 75230808.92 100.00 71196747.89 94.64 4034061.03

147Bengang Steel Plates Co. Ltd. Interim Report 2026

Significant other receivables tested for impairment individually:

2026/06/302025/12/31

Bad

Company Carrying Provision for debts Carrying Provision for

Reason

amount bad debts ratio amount bad debts

(%)

Benxi Iron

and Steel

(Group) No.

3 12504978.59 12504978.59 100 Bankrupt 12504978.59 12504978.59

Architectural

Engineering

Co. Ltd.Total 12504978.59 12504978.59 12504978.59 12504978.59

Provision for bad debt by portfolio of credit risk characteristics:

Portfolio accrual item: Aging portfolio

2026/06/30

Items

Amount Provision for bad debts Percentage（%）

Within 1 year

564929.3211213.331.29

(inclusive)

1-2 years (inclusive) 185254.69 11966.87 0.42

2-3 years (inclusive) 100661.74 18312.35 0.23

3-4 years (inclusive) 575037.11 521567.11 1.31

4-5 years (inclusive) 9055306.42 9055306.42 20.66

Over 5 years 33356088.10 33356088.10 76.09

Total 43837277.38 42974454.18 100.00

(3) Provision for Bad Debts

Stage one Stage two Stage three

Provision for bad debts Total

148Bengang Steel Plates Co. Ltd. Interim Report 2026

Lifetime expected Lifetime expected

Expected Credit

credit losses (credit credit losses (credit

Losses for the Next 12

impairment has not impairment has

Months

occurred) already occurred)

Beginning balance 9286.60 540789.59 70646671.70 71196747.89

Beginning balance during

-9262.73-278255.83287518.56

current period

--Transfer to the second stage -9262.73 9262.73

--Transfer to the third stage -287518.56 287518.56

--Write-back to the second

stage

--Write-back to the first stage

Accruals for the current

11189.46-232254.54315293.6694228.58

period

Reversal during the current

period

Write-back of the current

period

Write-off during the current

-10124205.29-10124205.29

period

Other changes

Ending balance 11213.33 30279.22 61125278.63 61166771.18

(4) Details of Bad Debt Provisions Accrued Reversed or Recovered During the Current

Period

Changes during the current period

Reversal

Items 2025/12/31 Write-back or 2026/06/30

Accrual or Others

write-off

recovered

Bad debt

provision

for other 71196747.89 94228.58 10124205.29 61166771.18

receivables

Total 71196747.89 94228.58 10124205.29 61166771.18

149Bengang Steel Plates Co. Ltd. Interim Report 2026

(5) Details of Other Receivables Actually Written Off During the Current Period

Item Write-off amount

Actual write-off of other accounts receivable 10124205.29

(6) Other receivables disclosed by nature

Nature 2026/06/30 2025/12/31

Current Account 59711310.42 71623926.65

Others 2634237.51 3606882.27

Total 62345547.93 75230808.92

(7) Top five other receivables at the end of the period

Percentage

Provision for

Nature or of total other

Company Amount Aging bad debts at

content receivables

2026/06/30

(%)

Benxi Iron and

Steel (Group)

No. 3 Current over 5

12504978.5920.0612504978.59

Architectural Account years

Engineering

Co. Ltd.Benxi Iron &

Steel (Group)

No. 1 Current

3247307.07 3-4 years 5.21 3247307.07

Construction Account

Engineering

Co. Ltd.Liaoning

Huawei Coal Current 2-3 years

2261360.003.632261360.00

Preparation Co. Account 3-4 years

Ltd.

4-5 years

Benxi Ganglian Current

1916960.24 over 5 3.07 1916960.24

Slag Co. Ltd. Account

years

Sandvik

International

Current Over 5

Trading 331704.79 0.53 331704.79

Account years

(Shanghai) Co.Ltd.Total 20262310.69 32.50 20262310.69

150Bengang Steel Plates Co. Ltd. Interim Report 2026

(7) Inventories

1. Inventories disclosed by category

2026/06/302025/12/31

Inventory

Inventory

impairment/

Items impairment/Impairment

Gross carrying amount Book value Gross carrying amount Impairment of Book value

of contract fulfillment

contract

costs

fulfillment costs

Raw material 3192817502.91 256207419.31 2936610083.60 3171263464.65 256207419.31 2915056045.34

Work in progress 2255821458.21 50094355.14 2205727103.07 2473710024.54 64533859.33 2409176165.21

Finished goods 954152630.90 24980139.07 929172491.83 1074768310.11 29805634.54 1044962675.57

Total 6402791592.02 331281913.52 6071509678.50 6719741799.30 350546913.18 6369194886.12

2. Impairment of inventory and contract fulfillment cost

Increase Decrease

Category 2025/12/31 2026/06/30

Provision Others Write-back or write-off Others

Raw material 256207419.31 256207419.31

Work in progress 64533859.33 14439504.19 50094355.14

151Bengang Steel Plates Co. Ltd. Interim Report 2026

Increase Decrease

Category 2025/12/31 2026/06/30

Provision Others Write-back or write-off Others

Finished goods 29805634.54 14435000.34 19260495.81 24980139.07

Total 350546913.18 14435000.34 33700000.00 331281913.52

152Bengang Steel Plates Co. Ltd. Interim Report 2026

(8) Other current assets

Items 2026/06/30 2025/12/31

VAT input tax 312457057.74 431454249.59

Others 11113647.88 18817113.34

Total 323570705.62 450271362.93

153Bengang Steel Plates Co. Ltd. Interim Report 2026

(9) Long-term equity investment

1. Long-term equity investment

Increase/decrease

Income or

Impairment loss on Impairment

2025/12/31 Reductio Other Declaration 2026/06/30

provision Addition investment Other Provision provision

Investees (Book n of Comprehensive of Cash (Book

as of of recognized Equity of Others as of

value) Investme Income Dividends value)

2025/12/31 Investment under the Changes Impairment 2026/06/30

nt Adjustment or Profit

equity

method

1. Joint venture

Subtotal

2．Associated

Enterprise

Shenyang

Xiangyu New

Material 43269884.04 43269884.04

Technology Co.Ltd.Subtotal

43269884.0443269884.04

154Bengang Steel Plates Co. Ltd. Interim Report 2026

Increase/decrease

Income or

Impairment loss on Impairment

2025/12/31 Reductio Other Declaration 2026/06/30

provision Addition investment Other Provision provision

Investees (Book n of Comprehensive of Cash (Book

as of of recognized Equity of Others as of

value) Investme Income Dividends value)

2025/12/31 Investment under the Changes Impairment 2026/06/30

nt Adjustment or Profit

equity

method

Total

43269884.0443269884.04

155Bengang Steel Plates Co. Ltd. Interim Report 2026

(10) Other equity instrument investment

1. The information of other equity instrument investment

Changes in fair value for

the current period

Chang Disp Accumulated

Amount

Accumulated es osal gains or losses

of change Accumulated gains

gains or losses related duri reclassified

related to or losses recognized

recognized in to ng Other from other

the Su in other Reasons for

Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive

investmen bt comprehensive Designation

comprehensive ments curr es income to

t ot income as at

income as at held at ent retained

derecogni al 2026/06/30

2025/12/31 the peri earnings for the

zed in the

end of od current period

current

the

period

period

Suzhou

Non-trading

Longben

3975243.87 86263.87 3975243.87 86263.87 equity

Metal

investments

Materials Co.

156Bengang Steel Plates Co. Ltd. Interim Report 2026

Changes in fair value for

the current period

Chang Disp Accumulated

Amount

Accumulated es osal gains or losses

of change Accumulated gains

gains or losses related duri reclassified

related to or losses recognized

recognized in to ng Other from other

the Su in other Reasons for

Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive

investmen bt comprehensive Designation

comprehensive ments curr es income to

t ot income as at

income as at held at ent retained

derecogni al 2026/06/30

2025/12/31 the peri earnings for the

zed in the

end of od current period

current

the

period

period

Ltd.Northeast 886445587.90 -151290261.10 886445587.90 -151290261.10 Non-trading

Special Steel equity

Group Co. investments

Ltd.Sinosteel -14414693.00 -14414693.00 Non-trading

Shanghai equity

157Bengang Steel Plates Co. Ltd. Interim Report 2026

Changes in fair value for

the current period

Chang Disp Accumulated

Amount

Accumulated es osal gains or losses

of change Accumulated gains

gains or losses related duri reclassified

related to or losses recognized

recognized in to ng Other from other

the Su in other Reasons for

Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive

investmen bt comprehensive Designation

comprehensive ments curr es income to

t ot income as at

income as at held at ent retained

derecogni al 2026/06/30

2025/12/31 the peri earnings for the

zed in the

end of od current period

current

the

period

period

Steel investments

Processing

Co. Ltd.Total 890420831.77 -165618690.23 890420831.77 -165618690.23

158Bengang Steel Plates Co. Ltd. Interim Report 2026

(11) Fixed assets

1. Fixed assets and Disposal of fixed assets

Items 2026/06/30 2025/12/31

Fixed assets 28503203951.19 28412673622.89

Disposal of fixed assets

Total 28503203951.19 28412673622.89

159Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Details of fixed assets

Transportation

Items Buildings Machinery Office equipment Total

equipment

1．Gross carrying amount

（1）31 December 2025 14512000962.46 55728042419.61 389671361.06 254240292.88 70883955036.01

（2）Increase in current period 154466293.69 856780148.08 3509159.07 5049374.91 1019804975.75

—Including: Purchase 1210256.64 1210256.64

—Transferred from

154466293.69855569891.443509159.075049374.911018594719.11

construction in progress

—Increase in Business

Combinations

—Others

（3）Decrease in current period 23127786.85 163774873.42 498269.32 27000.85 187427930.44

—Including: Disposal or

23127786.85163774873.42498269.3227000.85187427930.44

scrapped

（4）30 June 2026 14643339469.30 56421047694.27 392682250.81 259262666.94 71716332081.32

2．Total accumulated depreciation

（1）31 December 2025 7007049986.34 34850043391.39 317740105.30 172303686.37 42347137169.40

（2）Increase in current period 127289600.86 754075765.14 5680072.99 18302525.36 905347964.35

160Bengang Steel Plates Co. Ltd. Interim Report 2026

Transportation

Items Buildings Machinery Office equipment Total

equipment

—Including: Provision 127289600.86 754075765.14 5680072.99 18302525.36 905347964.35

（3）Decrease in current period 19909460.83 142892888.97 451164.05 26190.82 163279704.67

—Including: Disposal or

19909460.83142892888.97451164.0526190.82163279704.67

scrapped

（4）30 June 2026 7114430126.37 35461226267.56 322969014.24 190580020.91 43089205429.08

3．Total impairment

（1）31 December 2025 82416017.35 41728226.37 124144243.72

（2）Increase in current period

—Including: Provision

（3）Decrease in current period 221542.67 221542.67

—Including: Disposal or

221542.67221542.67

scrapped

（4）30 June 2026 82416017.35 41506683.70 123922701.05

4．Net book value

（1）30 June 2026 7446493325.58 20918314743.01 69713236.57 68682646.03 28503203951.19

（2）31 December 2025 7422534958.77 20836270801.85 71931255.76 81936606.51 28412673622.89

161Bengang Steel Plates Co. Ltd. Interim Report 2026

3. Fixed assets idled temporarily

Gross carrying Accumulated

Items Impairment Book value Note

amount depreciation

Buildings 112715295.87 68447346.38 41943853.74 2324095.75

Machinery 3081592.21 2444779.24 74824.18 561988.79

Transportation

58652.7856893.201759.58

equipment

Others 110671.80 109829.55 842.25

Total 115966212.66 71058848.37 42019520.17 2887844.12

4. Fixed assets leased out by operating lease

Items Book value

Buildings 66447740.91

Machinery 51788.34

5. Fixed assets without property rights certificates at the end of the period

Items Book value Reason

Buildings 2523010854.83 In process

(12) Construction in progress

1. Construction in progress and Construction materials

2026/06/302025/12/31

Total Total

Items Gross carrying Gross carrying

impair Book value impairm Book value

amount amount

ment ent

Construction in progress 2621834772.76 2621834772.76 3074712066.38 3074712066.38

Project materials

Total 2621834772.76 2621834772.76 3074712066.38 3074712066.38

162Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Details of construction in progress

30/06/202631/12/2025

Items Gross

carrying Total

Gross

impairment Book value carrying

Total

impairment Book valueamount amount

Cold Rolling

Transformation 495286633.88 495286633.88 483026894.14 483026894.14

Project

Environmental

Protection

Renovation of 163941520.69 163941520.69 158152797.73 158152797.73

Plate Raw

Material Plant

Environmental

Upgrade of the

No. 2 Sintering

Stockyard at the 159652504.28 159652504.28 156323959.75 156323959.75

Sheet Metal

Ironmaking

Plant

Renovation of

the dust removal

system in the

No. 6 blast 97577974.12 97577974.12 96061655.94 96061655.94

furnace area of

? ? the Iron and

Steel Plant

Special Steel

Electric Furnace

Capacity 89650279.86 89650279.86 86939629.39 86939629.39

Replacement

Project

Grid Upgrade

Project

Supporting the

Bancai

Nengguan

Centre 88896134.52 88896134.52 142364867.84 142364867.84

Supercritical

Power

Generation

Project

Bengang Plate

intelligent 87514048.78 87514048.78 85050424.38 85050424.38

factory Project

Steam Drum to

Electric Drum

Conversion

Project of the 85408927.97 85408927.97 118526373.67 118526373.67

Plate Energy

Management

Centre

Desulphurization

Waste Liquor

Acid Making

Project in Plates 82624177.66 82624177.66 82624177.66 82624177.66

Iron Making

Plant

Retrofit of the

Dust Removal

System in the 69780633.95 69780633.95 68847544.63 68847544.63

New No.1 Blast

Furnace Area at

163Bengang Steel Plates Co. Ltd. Interim Report 2026

30/06/202631/12/2025

Items Gross Gross

carrying Total Total

amount impairment

Book value carrying

amount impairment

Book value

the Ironmaking

General Works

Hazard

Rectification of

Taizi River

Railway Bridge 57703408.27 57703408.27 51796370.22 51796370.22

at Railway

Transportation

Company

Construction

materials

Others 1143798528.78 1143798528.78 1544997371.03 1544997371.03

Total 2621834772.76 2621834772.76 3074712066.38 3074712066.38

164Bengang Steel Plates Co. Ltd. Interim Report 2026

3. Changes in important construction projects in the current period

Project

cumulative Including：

Increase Transferred to Other investmentdecrease accounted Project Accumulated Interest

Interest

capitalization

Items Budget 2025/12/31 during fixed asset amount of capitalization Sources ofcurrent during current during 2026/06/30 for the progress rate in

period period current proportion (%)

interest amount in

capitalization current current

funds

period of the period (%)

budget period

(%)

Cold Rolling Loan from

Transformation 843640000.00 483026894.14 12259739.74 495286633.88 97.1 97.1 52224686.79 financial

Project institute

Environmental

Protection

Renovation of 1286370000.00 158152797.73 5788722.96 163941520.69 37.11 37.11 36764770.52 Own Fundsand Loans

Plate Raw

Material Plant

Environmental

Protection

Retrofit of the

Second Sintering

Stockyard at the 199880000.00 156323959.75 3328544.53 159652504.28 79.87 79.87 5212015.58 2488092.53 3.43

Own Funds

and Loans

Plate

Ironmaking

General Works

Renovation of

the dust removal

system in the

No. 6 blast 99970000.00 96061655.94 1516318.18 97577974.12 97.61 97.61 2922501.88 1516318.18 3.43 Own Fundsand Loans

furnace area of

? ? the Iron and

Steel Plant

Special Steel

Electric Furnace

Capacity 1732481000.00 86939629.39 2710650.47 89650279.86 89.73 89.73 52044899.29 Own Funds

Replacement

Project

165Bengang Steel Plates Co. Ltd. Interim Report 2026

Project

cumulative Including：

Increase Transferred to Other investmentdecrease accounted Project Accumulated Interest

Interest

Items Budget 2025/12/31 during fixed asset during 2026/06/30 for the progress amount of capitalization

capitalization Sources of

current during current current proportion (%) interest amount in

rate in

period period capitalization current current

funds

period of the period period (%)budget

(%)

Power Grid

Upgrade for the

Plate Energy

Centre 264470000.00 142364867.84 30638716.58 84107449.90 88896134.52 65.42 65.42 4706350.87 2104391.35 3.43

Own Funds

and Loans

Supercritical

Power Project

Bengang Plate

intelligent 93000000.00 85050424.38 2463624.40 87514048.78 94.1 94.1 3727996.79 1270824.41 3.43 Own Fundsand Loans

factory Project

Steam Drum to

Electric Drum

Conversion

Project of the 187900000.00 118526373.67 2125765.42 35243211.12 85408927.97 64.21 64.21 6071287.62 2125765.42 3.43 Own Fundsand Loans

Plate Energy

Management

Centre

Desulphurization

Waste Liquor

Acid Making

Project in Plates 99760000.00 82624177.66 82624177.66 92.93 92.93 Own Funds

Iron Making

Plant

Retrofit of the

Dust Removal

System in the

New No.1 Blast 71850000.00 68847544.63 933089.32 69780633.95 97.12 97.12 1908292.71 972527.32 3.43 Own Fundsand Loans

Furnace Area at

the Ironmaking

General Works

Total 1477918325.13 61765171.60 119350661.02 1420332835.71 165582802.05 10477919.21

166Bengang Steel Plates Co. Ltd. Interim Report 2026

167Bengang Steel Plates Co. Ltd. Interim Report 2026

(13) Right of use assets

1. Right of use assets

Items Land Buildings Machinery Total

1. Gross carrying

amount

(1) 31 December

1132274415.17368465367.561459378563.112960118345.84

2025

(2) Increase in current

327506878.59327506878.59

period

—Addition 327506878.59 327506878.59

— Increase due

to business

combinations

— Others

(3) Decrease in

current period

— Transfer to

Fixed Assets

— Disposal

— Others

(4) 30 June 2026 1132274415.17 368465367.56 1786885441.70 3287625224.43

2．Total accumulated

depreciation

(1) 31 December

199521181.16102351491.2451090279.54352962951.94

2025

(2) Increase in current

10235149.1441121534.9619952118.1271308802.22

period

—Provision 10235149.14 41121534.96 19952118.12 71308802.22

(3) Decrease in

current period

— Transfer to

Fixed Assets

— Disposal

168Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Land Buildings Machinery Total

(4) 30 June 2026 209756330.30 143473026.20 71042397.66 424271754.16

3．Total impairment

(1) 31 December

2025

(2) Increase in current

period

—Provision

(3) Decrease in

current period

— Transfer to

Fixed Assets

— Disposal

(4) 30 June 2026

4．Total net book

value

(1) 30 June 2026 922518084.87 224992341.36 1715843044.04 2863353470.27

(2) 31 December

932753234.01266113876.321408288283.572607155393.90

2025

(14) Intangible assets

1. Details of intangible assets

Items Software Land use right Total

1．Total of original value

（1）31 December 2025 4439653.03 489429922.52 493869575.55

（2）Increase 6699940.00 6699940.00

—Purchase 6699940.00 6699940.00

—Internal R&D

—Increase due to business

combinations

（3）Decrease

—Disposal

169Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Software Land use right Total

—The portion that has lapsed and

been derecognized

（4）30 June 2026 11139593.03 489429922.52 500569515.55

2．Total Accumulated Amortization

（1）31 December 2025 1850912.67 108359650.11 110210562.78

（2）Increase 944924.79 4975852.65 5920777.44

—Provision 944924.79 4975852.65 5920777.44

（3）Decrease

—Disposal

— Portion that has become invalid

and been derecognized

（4）30 June 2026 2795837.46 113335502.76 116131340.22

3．Total of Impairment

（1）31 December 2025

（2）Increase

—Provision

（3）Decrease

—Disposal

— Portion that has become invalid

and been derecognized

（4）30 June 2026

4．Total of Net book value

（1）30 June 2026 8343755.57 376094419.76 384438175.33

（2）31 December 2025 2588740.36 381070272.41 383659012.77

2. Land use right without property rights certificates at the end of the period

Items Book value Reason

Land use right 34984913.58 In process

Total 34984913.58

(15) Deferred tax asset and deferred tax liability

170Bengang Steel Plates Co. Ltd. Interim Report 2026

1. Deferred tax assets before taking into consideration of the balance offsetting

2026/06/302025/12/31

Deductible Deductible

Items Deferred tax Deferred tax

temporary temporary

assets assets

differences differences

Asset impairment

655581198.9798801529.86678979736.04102311312.63

loss

Changes in fair value

of other financial

assets recognized in 165704954.07 24855743.11 165704954.07 24855743.11

other comprehensive

income

Tax-Accounting

Differences under 2665147479.60 399772121.94 2587520333.13 388128049.97

Lease Standards

Total 3486433632.64 523429394.91 3432205023.24 515295105.71

2. Deferred tax liabilities before taking into consideration of the balance offsetting

2026/06/302025/12/31

Taxable Taxable

Items Deferred tax Deferred tax

temporary temporary

liabilities liabilities

differences differences

Changes in fair value

of other financial

assets recognized in 65857.87 9878.68 65857.87 9878.68

other comprehensive

income

Tax-Accounting

Differences under 2863353470.27 429503020.54 2607155393.87 391073309.08

Lease Standards

Total 2863419328.14 429512899.22 2607221251.74 391083187.76

3. Deferred income tax assets or liabilities presented at net amounts after offsetting

171Bengang Steel Plates Co. Ltd. Interim Report 2026

2026/06/302025/12/31

Deferred Income

Offset Amount of Offset Amount of Deferred Income

Tax Asset or

Items Deferred Income Deferred Income Tax Asset or

Liability Balance

Tax Assets and Tax Assets and Liability Balance

(Net of

Liabilities Liabilities (Net of Offsetting)

Offsetting)

Deferred tax

429512899.2293916495.69391083187.76124211917.95

assets

Deferred tax

429512899.22391083187.76

liabilities

4. Unrecognized deferred tax assets

Items 2026/06/30 2025/12/31

Deductible temporary differences 70268.35 70268.35

Deductible losses 15008200477.91 13500278662.54

Total 15008270746.26 13500348930.89

5. The deductible loss of unrecognized deferred tax assets due in the following

period

Year 2026/06/30 2025/12/31 Notes

Year 2025 2512631.86

Year 2026 8117351.82

Year 2027

Year 2028

Year 2029

Year 2030

Year 2031

Year 2032 1664693068.34 1911715647.99

Year 2033 2192634808.94 2367541315.76

Year 2034 5125603742.69 5125613839.53

172Bengang Steel Plates Co. Ltd. Interim Report 2026

Year 2026/06/30 2025/12/31 Notes

Year 2035 4067399112.38 4084777875.58

Year 2036 1957869745.56

Total 15008200477.91 13500278662.54

(16) Other non-current assets

2026/06/302025/12/31

Gross

Items Gross carrying

carrying Impairment Book value Impairment Book value

amount

amount

Prepayment

for

construction 51426835.78 51426835.78 54632516.72 54632516.72

and

equipment

Total 51426835.78 51426835.78 54632516.72 54632516.72

173Bengang Steel Plates Co. Ltd. Interim Report 2026

(17) Assets with restricted ownership or use rights

2026/06/302025/12/31

Items Type of Type of

Carrying amount Book value Status Carrying amount Book value Status

restriction restriction

Margin for Margin for

Margin for Notes Margin for Notes

Notes Notes

Cash at bank and receivable receivable

840931894.73 840931894.73 receivable 839920368.84 839920368.84 receivable

on hand Margin for letter Margin for letter

Margin for letter Margin for letter

of credit of credit

of credit of credit

Notes receivable 3000000.00 3000000.00 Pledged Pledged 6182721.01 6182721.01 Pledged Pledged

Accounts

receivable 124228068.50 124228068.50 Pledged Pledged 120290859.64 120290859.64

financing

Total 968159963.23 968159963.23 966393949.49 966393949.49

174Bengang Steel Plates Co. Ltd. Interim Report 2026

(18) Short-term loans

1. Classification of short-term loans

Items 2026/06/30 2025/12/31

Credit loans 4500500000.00 200000000.00

Discounted unexpired bills 74871374.99 133660470.12

Total 4575371374.99 333660470.12

(19) Notes payable

Items 2026/06/30 2025/12/31

Bank acceptance bill 11323422620.99 10925339515.71

Commercial acceptance bill 1053970486.17 900231371.80

Letter of credit 1296446679.86 1136716755.37

Total 13673839787.02 12962287642.88

Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB

48559.99 and the reason for the overdue non-payment was that the holder did not submit a

payment application.

(20) Accounts payable

1. Accounts payable

Items 2026/06/30 2025/12/31

Within 1 year (inclusive) 2655935323.74 2526036992.36

1-2 year (inclusive) 390123745.01 99557994.74

2-3 year (inclusive) 22733207.48 25862929.99

Over 3 years 32273400.50 15778495.57

Total 3101065676.73 2667236412.66

2. Significant accounts payable aging over one year or overdue

Items 2026/06/30 Reasons

Benxi Iron & Steel (Group) Information Not yet eligible for

25760851.42

Automation Co. Ltd. settlement

175Bengang Steel Plates Co. Ltd. Interim Report 2026

Items 2026/06/30 Reasons

Not yet eligible for

Benxi Iron & Steel (Group) Co. Ltd. 19070663.16

settlement

Total 44831514.58

(21) Prepayments

Items 2026/06/30 2025/12/31

Within 1 year (inclusive) 252490.93 49541.35

1-2 years (inclusive)

2-3 years (inclusive)

Over 3 years

Total 252490.93 49541.35

(22) Contract liabilities

1. Details of contract liabilities

Items 2026/06/30 2025/12/31

Payment received in advance and labor

2701578357.212736697947.25

costs

Total 2701578357.21 2736697947.25

(23) Employee benefits payable

1. Employee benefits payable

Items 2025/12/31 Increase Decrease 2026/06/30

Short-term employee

2586883.29739917902.51732201028.0410303757.76

benefits

Post-employment

benefits - defined 124590568.16 124590568.16

contribution plans

Termination benefits 35678608.84 35678608.84

Other benefits due

within one year

176Bengang Steel Plates Co. Ltd. Interim Report 2026

Items 2025/12/31 Increase Decrease 2026/06/30

Total 2586883.29 900187079.51 892470205.04 10303757.76

2. Short-term employee benefits

Items 2025/12/31 Increase Decrease 2026/06/30

(1) Salary bonus

536594061.32536594061.32

allowance and subsidy

(2) Employee welfare 52197484.88 52197484.88

(3) Social Insurance 60732201.10 60732201.10

Including: Medical

insurance and maternity 52620325.82 52620325.82

insurance

Work injury

8111875.288111875.28

insurance

Others

(4) Housing fund 65257056.60 65257056.60

(5) Union funds and staff

2586883.2919067600.4711350726.0010303757.76

education fee

(6) Short-term

compensated absences

(7) Short-term profit -

sharing scheme

(8) Other short-term

6069498.146069498.14

benefits

Total 2586883.29 739917902.51 732201028.04 10303757.76

3. Defined contribution plans

Items 2025/12/31 Increase Decrease 2026/06/30

Basic pension fund 100014077.94 100014077.94

Unemployment insurance 3127107.02 3127107.02

Annuity 21449383.20 21449383.20

177Bengang Steel Plates Co. Ltd. Interim Report 2026

Items 2025/12/31 Increase Decrease 2026/06/30

Total 124590568.16 124590568.16

(24) Current tax liabilities

Items 2026/06/30 2025/12/31

Value-added tax 19270564.89 10075228.91

Resource Tax 1983931.52 1965703.36

Corporate income tax 7989360.98 14251204.39

City maintenance and construction tax 1730775.46 708128.46

House property tax 7544121.03 6967050.05

Land use right tax 1144608.49 1144608.49

Individual income tax 385476.32 8351507.38Educational surcharges（including local

1284767.15505806.05Educational surcharges）

Others 12383913.36 15888049.72

Total 53717519.20 59857286.81

(25) Other payables

Items 2026/06/30 2025/12/31

Interest payables

Dividends payables 45054305.70 45054305.70

Other payables 2506114931.70 2730489890.41

Total 2551169237.40 2775544196.11

1. Dividends payables

Items 2026/06/30 2025/12/31

Bengang Group Co. Ltd. 45054305.70 45054305.70

Total 45054305.70 45054305.70

2. Other payables

178Bengang Steel Plates Co. Ltd. Interim Report 2026

(1) Other payables disclosed by nature

Items 2026/06/30 2025/12/31

Current Accounts 2114625828.39 2344273165.96

Deposit 619292.00 559292.00

Margin 387588777.97 382448871.66

Others 3281033.34 3208560.79

Total 2506114931.70 2730489890.41

(2) Significant other payables aged over one year or overdue

Items 2026/06/30 Reasons

MCC Capital Engineering & Research 30451811.79 Settlement period not

Incorporation Limited yet reached

Total 30451811.79

(26) Non-current liabilities due within one year

Items 2026/06/30 2025/12/31

Long-term loans due within one year 1107725768.90 927300000.00

Including: Pledged loans

Mortgage loan

Guaranteed loan

Credit loan 1107725768.90 927300000.00

Bond payables due within one year 5665550635.00

Lease liabilities due within one year 350078751.34 348084227.49

Total 1457804520.24 6940934862.49

(27) Other current liabilities

Items 2026/06/30 2025/12/31

Output tax to be transferred 290086986.58 275281765.24

Total 290086986.58 275281765.24

179Bengang Steel Plates Co. Ltd. Interim Report 2026

(28) Long-term loans

Items 2026/06/30 2025/12/31

Pledged loans

Mortgage loans

Guaranteed loans

Credit loans 10335711376.76 6941769758.11

Subtotal 10335711376.76 6941769758.11

Less: Non-current liabilities due within

1107725768.90927300000.00

one year

Total 9227985607.86 6014469758.11

Notes: The interest rate of long-term loans is 2.39%-3.67%.

(29) Bonds payable

180Bengang Steel Plates Co. Ltd. Interim Report 2026

1. Changes in Bonds payables (Excluding other financial instruments such as preferred stocks and perpetual bonds classified as financial liabilities)

Share

conversi

Balance at the end Premium and Balance at the end

Coupo Issue Bond Current Interest accrued Repayment in on and Default

Items Face value Issuance amount of the previous discount of the current

n rate date duration issue at face value this period repurcha or not

year amortization period

se this

year

Bengang

29th

Convertible 511100.0

6800000000.00 June 6 years 6800000000.00 5665550635.00 140776302.50 106286722.17 5912102559.67 No

Bond (Bond 0

2020

code:127018)

Less: amount

511100.0

due within one 5665550635.00 140776302.50 106286722.17 5912102559.67 No

0

year

Total 6800000000.00

2. Description of corporate convertible bond:

181Bengang Steel Plates Co. Ltd. Interim Report 2026

Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656" the Company’s RMB 6.80 billion convertible corporate bonds were listed on

the Shenzhen Stock Exchange on August 4 2020 and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period

of the convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3

2020) to the maturity date of the convertible corporate bonds that is from January 4 2021 to June 28 2026. The initial conversion price of the convertible

bonds is RMB 5.03 per share. During the period from January 1 2026 to June 30 2026 a total of RMB 507100.00 of the Company’s A-share convertible

bonds were converted into A-share common stock resulting in the issuance of 153879.00 shares; additionally bonds amounting to RMB 4180.84 were put

back to the Company. Among them:

In the first quarter of 2026 the Bengang convertible bonds were reduced by RMB 14000.00 (140 bonds) due to the conversion and the number of shares

converted was 4247.00 shares and the conversion price was RMB3.29 per share;

In the second quarter of 2026 the Bengang convertible bonds were reduced by RMB 493100.00 (4971 bonds) due to the conversion and the number of

shares converted was 149602.00 shares and the conversion price was RMB3.29 per share. Bengang Convertible Bonds decreased by RMB 4180.84 (40

notes) due to put-back repurchases at a price of RMB 104.521 per note.The company's convertible bonds matured on June 28 2026; redemption was completed on June 29 and the bonds ceased conversion and were delisted from

the Shenzhen Stock Exchange.

182Bengang Steel Plates Co. Ltd. Interim Report 2026

(30) Lease liabilities

Items 2026/06/30 2025/12/31

Lease payments 3406983321.77 3357181841.40

Less: Unrealized financing expenses 743108324.82 769661508.27

Reclassified to non-current liabilities

350078751.34348084227.49

within one year

Total 2313796245.61 2239436105.64

(31) Deferred income

Items 2025/12/31 Increase Decrease 2026/06/30 Reason

Government

158199416.5814665500.0025300828.43147564088.15

subsidy

Total 158199416.58 14665500.00 25300828.43 147564088.15

183Bengang Steel Plates Co. Ltd. Interim Report 2026

The details of the government subsidy projects are as follows:

Transfer to Offsetting

Transfer to Other

Related to assets or income 2025/12/31 Increase non-operatin cost or 2026/06/30

other income changes

g income expenses

Related to assets 155261857.80 10100000.00 22086071.22 143275786.58

Related to income 2937558.78 4565500.00 3214757.21 4288301.57

Total 158199416.58 14665500.00 25300828.43 147564088.15

184Bengang Steel Plates Co. Ltd. Interim Report 2026

(32) Share capital

Increase/decrease (+ - )

Issuing Transferred

Items 2025/12/31 Bonus 2026/06/30

of new from Others Subtotal

shares

share reserves

Total

4108236253.00153849.00153849.004108390102.00

shares

Note: The increase during the current period resulted from the conversion of the Company's

A-share convertible bonds into 153849.00 A-share common shares; the bonds payable were

fully redeemed on June 29 2026.

185Bengang Steel Plates Co. Ltd. Interim Report 2026

(33) Other equity instruments

Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period

2025/12/31 Increase Decrease 2026/06/30

Items

Number Book value Number Book value Number Book value Number Book value

Convertible corporate

56309531.00947843680.8256309531.00947843680.82

bonds

Total 56309531.00 947843680.82 56309531.00 947843680.82

Notes: The decrease during the current period is attributable to the Company's A-share convertible bonds which were fully redeemed on June 29 2026.

186Bengang Steel Plates Co. Ltd. Interim Report 2026

(34) Capital reserves

Items 2025/12/31 Increase Decrease 2026/06/30

Capital (share)

13109738368.66349341.0513110087709.71

premium

Other capital

143217468.82143217468.82

reserves

Including: Changes

in Other Equity of

the Investee

Others 143217468.82 143217468.82

Total 13252955837.48 349341.05 13253305178.53

Notes: The increase in capital premium (share premium) during the current period is

attributable to the conversion of the Company's A-share convertible bonds into A-share

ordinary shares.

187Bengang Steel Plates Co. Ltd. Interim Report 2026

(35) Other comprehensive income

Current period

Less: amount

recognized in Income after Income after

Amounts

OCI in the tax tax Less: transfer

Items 2025/12/31 before 2026/06/30

previous period Less: income tax attributable to attributable to to retain

corporate

transfer to PL owners of the non-controllin earnings

income tax

in current Company g interests

period

1．Items cannot be reclassified

-129961806.05-129961806.05

into profit or loss.including: Remeasurement of

defined benefit plan changes

Other comprehensive income

that cannot be reclassified to

profit or loss under the equity

method

Changes in fair value of

-129961806.05-129961806.05

investments in other equity

188Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period

Less: amount

recognized in Income after Income after

Amounts

OCI in the tax tax Less: transfer

Items 2025/12/31 before 2026/06/30

previous period Less: income tax attributable to attributable to to retain

corporate

transfer to PL owners of the non-controllin earnings

income tax

in current Company g interests

period

instruments

Changes in the fair value of the

entity's own credit risk

2．Items can be reclassified into

profit or loss

Total -129961806.05 -129961806.05

189Bengang Steel Plates Co. Ltd. Interim Report 2026

(36) Special Reserves

Items 2025/12/31 Increase Decrease 2026/06/30

Safety production

881502.2330136206.9415006629.8216011079.35

cost

Total 881502.23 30136206.94 15006629.82 16011079.35

(37) Surplus Reserves

Items 2025/12/31 Increase Decrease 2026/06/30

Statutory surplus

1195116522.371195116522.37

reserves

Total 1195116522.37 1195116522.37

(38) Undistributed Profits

Items Current period Previous period

Before adjustments: undistributed profits at last

-11439289982.02-7497011632.90

year-end

Adjustments of the beginning distributed profits

(increase + / decrease -)

After adjustments: undistributed profit at this

-11439289982.02-7497011632.90

year-beginning

Add: undistributed profit belonging to parent

-1907548241.52-3942278349.12

company

Less: Statutory surplus reserves

Discretionary reserves

General risk reserves

Common shares dividend payable

Common shares dividend transferred to paid-in

capital

Ending balance of undistributed profits -13346838223.54 -11439289982.02

(39) Operating income and operating cost

190Bengang Steel Plates Co. Ltd. Interim Report 2026

1. Operating income and operating cost

Current period Previous period

Items

Revenue Cost Revenue Cost

Principal

22089025198.7223176105693.7924299027360.1725043467684.02

business

Other

246615745.68241001893.26398773061.82397749564.90

business

Total 22335640944.40 23417107587.05 24697800421.99 25441217248.92

191Bengang Steel Plates Co. Ltd. Interim Report 2026

2. Details about operating income and operating cost

Current period Current period Total

Item Principal business

Revenue Principal business Cost

Other business

Revenue Other business Cost Operating income Operating cost

Classification by the time

of commodity transfer

Including: recognize at a 22089025198.72 23176105693.79 245313778.51 240956345.76 22334338977.23 23417062039.55

certain point in time

-Recognize over 1301967.17 45547.50 1301967.17 45547.50

a certain period of time

Total 22089025198.72 23176105693.79 246615745.68 241001893.26 22335640944.40 23417107587.05

Classification by business

area

Including：Domestic 18251813846.06 19148363188.82 246615745.68 241001893.26 18498429591.74 19389365082.08

Abroad 3837211352.66 4027742504.97 3837211352.66 4027742504.97

Total 22089025198.72 23176105693.79 246615745.68 241001893.26 22335640944.40 23417107587.05

192Bengang Steel Plates Co. Ltd. Interim Report 2026

(40) Tax and surcharges

Items Current period Previous period

Environmental tax 4233454.78 7348645.97

City maintenance and construction tax 6083364.88 3841954.40

Educational surcharge 4058075.56 2814781.46

Resource Tax 4405854.90 5057602.56

Housing property tax 43234492.25 45022445.17

Land use right tax 7108043.20 7107861.82

Vehicle and vessel tax 11025.84 10711.44

Stamp duty 24324775.14 36809947.61

Others 335681.03 8373.04

Total 93794767.58 108022323.47

(41) Selling and distribution expenses

Items Current period Previous period

Sales service fee 9881438.94 1132435.68

Salary and benefits 27856422.67 28922500.81

Import and export agency fee 9985338.67 21286926.75

Others 10124051.70 10122303.29

Total 57847251.98 61464166.53

(42) General and administrative expenses

Items Current period Previous period

Salary and benefits 189617069.07 193863629.66

Insurance fee 7295986.60 11836395.97

Depreciation 31211373.54 31277381.76

Repair expense 10131.10 629075.86

Professional service expenses 5282245.18 4108796.48

Information System Service Fee 8617040.30 12135901.47

Safety Production Fee 14770561.25 13329362.22

Others 14189319.07 18584353.01

193Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

Total 270993726.11 285764896.43

(43) Research and development expenses

Items Current period Previous period

Depreciation materials and

31891802.9831617334.27

compensation etc.Total 31891802.98 31617334.27

(44) Financial expenses

Items Current period Previous period

Interest expenses 245361416.02 207308249.73

including: Interest expenses for lease

44906304.8630112339.61

liabilities

Less: Interest income 28085562.37 17521734.29

Exchange gains or losses 38852209.36 12771216.88

Others 6218975.93 5783222.76

Total 262347038.94 208340955.08

(45) Other income

Items Current period Previous period

Environmental protection subsidies 17957966.67 17682300.00

Technology subsidies 3245311.76 1559037.25

Other subsidies 33556093.72 89770909.44

Total 54759372.15 109012246.69

(46) Investment income

Items Current period Previous period

Income on long-term equity investment by equity

method

Gain from debt restructuring 53299.22 7215.64

Others -13097016.21 -17639062.95

194Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

Total -13043716.99 -17631847.31

(47) Credit impairment loss

Items Current period Previous period

Loss from bad debts of account receivable 9408509.78 17800262.33

Loss from bad debts of other receivables 94228.58 -8492152.37

Total 9502738.36 9308109.96

(48) Asset impairment loss

Items Current period Previous period

Inventory and contract fulfillment cost

14435000.34-36671170.60

impairment loss

Total 14435000.34 -36671170.60

(49) Assets disposal gains

The amount recognized in

Items Current period Previous period

non-recurring profit

Fixed assets 3008.85

Total 3008.85

(50) Non-operating income

The amount

Items Current period Previous period recognized in

non-recurring profit

Non-current assets scrapped

1914711.40524024.601914711.40

gains

Compensation for breach of

3688228.726638865.703688228.72

contract

Unpayable accounts payable 100.02

195Bengang Steel Plates Co. Ltd. Interim Report 2026

The amount

Items Current period Previous period recognized in

non-recurring profit

(Debt settlement income)

Others 479441.70 2560778.89 479441.70

Total 6082381.82 9723769.21 6082381.82

(51) Non-operating expense

The amount

Items Current period Previous period recognized in

non-recurring profit

Non-current assets scrapped

23926683.1032063940.4723926683.10

loss

Administrative Fines and Late

30000.0043.9430000.00

Payment Fees

Compensation liquidated

30814.38248751.3130814.38

damages and fines

Others 10772522.01 4210630.39 10772522.01

Total 34760019.49 36523366.11 34760019.49

(52) Income tax expenses

1. Income tax expense

Items Current period Previous period

Income tax payable for the current year 37776935.19 19759519.10

Deferred income tax 30295422.26 216509.20

Total 68072357.45 19976028.30

2. Accounting profit and income tax expense adjustment process

Items Current period

Total profit -1809240951.45

Income tax expense calculated according to the official or applicable tax -268040149.29

196Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period

rate

Effect of different tax rates applied by subsidiaries 3345993.43

Effect of adjustment of the income tax expense of prior period -2534261.94

Effect of non-taxable income

Effect of non-deductible costs expenses or losses -506520.94

Effect of use of deductible losses of unrecognized deferred tax asset of

-1794136.82

prior period

Effect of deductible temporary differences or deductible losses of

339848984.58

unrecognized deferred tax assets of current period

Others -2247551.57

Income tax expenses 68072357.45

(53) Notes of statement of cash flows

1. Cash related to operating activities

（1）Cash received related to other operating activities

Items Current period Previous period

Collection of current accounts and advance

25282728.5552500806.68

payment on behalf

Interest income 29605569.10 18463234.45

Special subsidy income 13472160.98 47191156.54

Non-operating income 532527.04 2920912.19

Others 137471.63 1097069.28

Total 69030457.30 122173179.14

（2）Cash paid related to other operating activities

Items Current period Previous period

Current accounts 51414558.72 80902412.69

Administrative expenses 79707107.06 40868520.89

Selling expenses 2777907.31 2753734.36

Charges 11488070.41 18292702.08

197Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

Others 9617045.49 15925186.78

Total 155004688.99 158742556.80

2. Cash related to financing activities

（1）Other cash received in relation to financing activities

Item Current period Previous period

Notes letter of guarantee and letter of credit

margins 921460041.20 1815330484.81

Recovery of short-term borrowing funds for

designated payments

Total 921460041.20 1815330484.81

（2）Other cash paid in relation to financing activities

Item Current period Previous period

Notes letter of guarantee and letter of credit

margins 922806578.39 1953106850.42

Lease payments 18415636.65 3767304.90

Financing fees 4970658.10 4977735.81

Total 946192873.14 1961851891.13

(54) Supplementary details of statement of cash flows

1. Supplementary details for statement of cash flows

Items Current period Previous period

1. A reconciliation of net profit to cash flows from

operating activities:

Net profit -1877313308.90 -1366655659.04

Add: Credit impairment loss 9502738.36 9308109.96

Asset impairment loss 14435000.34 -36671170.60

Depreciation of fixed assets 905347964.35 825835405.32

Depletion of oil and gas assets

Depreciation of right of use assets 71308802.22 39442062.84

Amortization of intangible assets 5920777.44 5572497.38

198Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

Amortization of Long-term Deferred Expenses

Losses proceeds from disposal of PPE intangible

assets and other long-term assets (Earnings marked -3008.85

“－”)

Scrapped losses from fixed assets (Earnings marked

22011971.7031539915.87

“－”)

Losses in fair value changes (Earnings marked “－”)

Financial expenses (Earnings marked “－”) 284213625.38 220079466.61

Investment losses (Earnings marked “－”) 13043716.99 17631847.31

Deferred tax assets reduction (Addition marked “－”) -8134289.20 6132818.62

Deferred tax liabilities increased (Reduction marked

38429711.46-5916309.42

“－”)

Reduction of inventory (Addition marked “－”) 316950207.28 319818265.50

Operating receivable items reduction (Addition

-89111656.52-551119293.48

marked “－”)

Operating payable items increase (Less marked"－") 984837107.51 841266763.23

Others 15129577.12 15368052.79

Net cash flows generated from operating activities 706571945.53 371629764.04

2. Payments of investing and financing activities not

involving cash:

Liabilities transferred to capital

Convertible bonds due within one year

Fixed assets financed by leasing

3. The net increase in cash and cash equivalents:

Ending balance of cash 960183662.81 1118512027.55

Less: Beginning balance of cash 287470306.31 1590205218.91

Add: Ending balance of cash equivalents

Less: Opening balance of cash equivalents

The net increase in cash and cash equivalents 672713356.50 -471693191.36

2. The structure of cash and cash equivalents

199Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

1. Cash 960183662.81 287470306.31

Including: Cash on hand

Bank deposits available on demand 960183662.81 287470306.31

Other monetary funds available for

immediate payment

2. Cash equivalents

Including: Bond investments maturing within three

months

3. Ending Balance of Cash and Cash Equivalents 960183662.81 287470306.31

Including: Cash and cash equivalents held but not

available for use by the parent company

or other subsidiaries within the group

(55) Foreign currency monetary items

1. Foreign currency monetary items

Ending balance in Ending balance

Item Exchange rate

foreign currency translated to RMB

Cash and cash equivalents 778908113.17

Including: USD 114361995.21 6.8109 778908113.17

Accounts receivable 849139404.55

Including: USD 124673597.40 6.8109 849139404.55

Accounts payable 103031832.45

Including: USD 15127491.59 6.8109 103031832.45

Non-current liabilities due

974434.92

within one year

Including: JPY 23176000.00 0.0421 974434.92

Long-term loans 487217.46

Including: JPY 11588000.00 0.0421 487217.46

6. Research and Development Expenses

1. Presented by Nature of Expense

200Bengang Steel Plates Co. Ltd. Interim Report 2026

Items Current period Previous period

Depreciation materials

31891802.9831617334.27

salaries etc.Professional Service Fee

Total 31891802.98 31617334.27

Including: Expensed R&D

31891802.9831617334.27

Expenditure

Capitalized R&D

Expenditures

2. Development expenditures for R&D projects that meet the criteria for capitalization

Increase during Decrease during

the current period the current period

Item 2025/12/31 Internal Recognized as 2026/06/30Development

Expenditure Intangible assets

Sheet

Configuration-based 3700000.00 3700000.00

CPK Analysis

Total 3700000.00 3700000.00

201Bengang Steel Plates Co. Ltd. Interim Report 2026

7. Interests in other entities

(1) Equity in subsidiaries

1. Constitution of enterprise group

Shareholding

Principal

Name of Registered Registrat Nature of ratio(%) Acquisition

place of

subsidiary Capital ion place Business Dire Indire method

business

ct ct

Guangzhou

Bengang Steel 200 million Guangzh Guangzho

& Iron Trading ou u

Sales 100 Establishment

Co. Ltd

Shanghai

Bengang

Metallurgy 230 million Shanghai Shanghai Sales 100 Establishment

Science and

Technology

Co. Ltd

Dalian

Benruitong

Automobile 100 million Dalian Dalian Manufacturing 65 EstablishmentMaterial

Technology

Co. Ltd

Bengang Business

POSCO combination1.92 billion Benxi Benxi Manufacturi 75 under

Cold-rolled ng common

Sheet Co. Ltd. control

Green Gold

(Benxi)

Renewable 60 million Benxi Benxi

Manufacturi

ng 51 Establishment

Resources Co.Ltd.Business

Yantai Bengang combination

Steel Sales Co. 200 million Yantai Yantai Sales 100 under

Ltd. common

control

Tianjin Business

Bengang Steel combination200 million Tianjin Tianjin Sales 100 under

Trading Co. common

Ltd. control

Benxi Bengang

Steel & Iron 30 million Benxi Benxi Sales 100 Establishment

Sales Co. Ltd.Shenyang

Bengang

Metallurgy 230 million Shenyan Shenyang Sales 100 Establishment

Science and g

Technology

Co. Ltd

North Hengda Business

Logistics Co. 150 million Benxi Benxi Manufacturing 100 combinationLtd. under

202Bengang Steel Plates Co. Ltd. Interim Report 2026

Shareholding

Principal

Name of Registered Registrat Nature of ratio(%) Acquisition

place of

subsidiary Capital ion place Business Dire Indire method

business

ct ct

common

control

2. Important non-wholly owned subsidiaries

Proportion Profits and losses Dividend

of attributing to declared to Ending

Name of the subsidiaries non-controlli non-controlling distribute to balance of

ng interests shareholders non-controlling non-controllingshareholders interests

Bengang POSCO

Cold-rolled Sheet Co.Ltd. 25.00% 25124611.93 639905811.08

203Bengang Steel Plates Co. Ltd. Interim Report 2026

3. Key financial information of significant but not wholly-owned subsidiaries

Name of 2026/06/30 2025/12/31

the Non-curr Non-currCurrent assets Non-currentassets Total assets

Current

liabilities ent Total liabilities Current assets

Non-current Total assets Current

liabilities assets liabilities

ent Total liabilities

liabilities

subsidiaries

Bengang

POSCO

Cold-rolled

Sheet Co. 5132874146.35 1007639562.00 6140513708.35 3580890464.04 3580890464.04 5416328740.21 1023071233.78 6439399973.99 3980275177.40 3980275177.40

Ltd.Current period Previous period

Name of the subsidiaries Operating Total Cash flow fromcomprehensive operating Operating

Total Cash flow from

Net profit Net profit comprehensive operating

income income activities income income activities

Bengang POSCO

Cold-rolled Sheet Co.Ltd. 3655467369.27 100498447.72 100498447.72 -58314589.30 3498792976.94 117712744.55 117712744.55 -206369040.92

204Bengang Steel Plates Co. Ltd. Interim Report 2026

(2) Interests in joint ventures or associated enterprises

1. Summarized financial information of insignificant joint ventures and associates

The Company has no material joint ventures or associates.

8. Government Subsidies

(1) Government grants included in current profit or loss

Accounting subjects Current period Previous period

Other income 52916603.16 78772057.75

Total 52916603.16 78772057.75

205Bengang Steel Plates Co. Ltd. Interim Report 2026

(2) Liabilities involving government subsidies

Amounts

recognized in Amounts

non-operating recognized in

Offset costs or

Liabilities 2025/12/31 Addition income during other income

expenses Other 2026/06/30 Asset-related/income-relat

changes ed

the current during the

during the

current period

period current period

Deferred Asset-related/income-relat

158199416.5814665500.0025300828.43147564088.15

income ed

206Bengang Steel Plates Co. Ltd. Interim Report 2026

9. Risks associated with financial instruments

(1) Various risks arising from financial instruments

In the course of its operations the Company is exposed to various financial risks: credit

risk liquidity risk and market risk (including currency risk interest rate risk and other

price risks). These financial risks and the risk management policies adopted by the

Company to mitigate them are described below:

1. Credit Risk

Credit risk refers to the risk that a counterparty fails to discharge a contractual obligation

resulting in a financial loss to the Company.

2. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial

obligations on the maturity date.The Company’s policy is to ensure that it maintains sufficient cash to meet its maturing

obligations. Liquidity risk is managed centrally by the Company's treasury department.By monitoring cash balances highly liquid marketable securities and rolling forecasts of

cash flows for the next 12 months the treasury department ensures the Company has

adequate funds to settle its debts under all reasonably foreseeable circumstances. At the

same time the Company continuously monitors compliance with borrowing agreements

and obtains commitments from major financial institutions to provide sufficient standby

funding to meet both short-term and long-term capital requirements.The Company's various financial liabilities are listed as follows by maturity date with

undiscounted contractual cash flows:

207Bengang Steel Plates Co. Ltd. Interim Report 2026

2026/06/30

Items Immediate Total undiscounted

Within 1 year 1-2 years 2-5 years Over 5 years Book value

repayment contract amount

Short-term

4575371374.994575371374.994575371374.99

loans

Notes

13716979959.1413716979959.1413716979959.14

payable

Accounts

3101065676.733101065676.733101065676.73

payable

Other 1471465107.72 900248576.00 179455553.68 2551169237.40 2551169237.40

payables

Long-term

loans

(including

long-term

loans due 1107725768.90 9227985607.86 10335711376.76 10335711376.76

within one

year)

Lease

liabilities

(including

lease

liabilities 350078751.34 420003905.75 817727027.56 725986560.96 2313796245.61 2313796245.61

due within

one year)

Total 24322686638.82 10548238089.61 997182581.24 725986560.96 36594093870.63 36594093870.63

208Bengang Steel Plates Co. Ltd. Interim Report 2026

2025/12/31

Items Immediate Total undiscounted

Within 1 year 1-2 years 2-5 years Over 5 years Book value

repayment contract amount

Short-term

333660470.12333660470.12333660470.12

loans

Notes

12962287642.8812962287642.8812962287642.88

payable

Accounts

2667236412.662667236412.662667236412.66

payable

Other

1695840066.43900248576.00179455553.682775544196.112775544196.11

payables

Long-term

loans 927300000.00 2326771934.40 3687697823.71 6941769758.11 6941769758.11

(including

long-term

loans due

within one

year)

Lease

liabilities 348084227.50 420003905.75 817727027.56 1001705172.32 2587520333.13 2587520333.13

(including

lease

liabilities

due within

one year)

Bonds

payable 5665550635.00 5665550635.00 5665550635.00

209Bengang Steel Plates Co. Ltd. Interim Report 2026

2025/12/31

Items Immediate Total undiscounted

Within 1 year 1-2 years 2-5 years Over 5 years Book value

repayment contract amount

Total 24599959454.59 3647024416.15 4684880404.95 1001705172.32 33933569448.01 33933569448.01

210Bengang Steel Plates Co. Ltd. Interim Report 2026

3. Market Risk

Market risk of financial instruments refers to the risk that the fair value or future

cash flows of financial instruments fluctuate due to changes in market prices

including exchange rate risk interest rate risk and other price risks.

（1）Interest rate risk

Interest rate risk refers to the risk that the fair value of a financial instrument or

future cash flows will fluctuate due to changes in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose the

Company to fair value interest rate risk and cash flow interest rate risk respectively.The Company determines the relative proportions of fixed-rate and floating-rate

instruments based on prevailing market conditions and maintains an appropriate

mix of these instruments through regular reviews and monitoring. When necessary

the Company utilizes interest rate swaps to hedge against interest rate risk.

（2）Exchange rate risk

Exchange rate risk refers to the risk that the fair value or future cash flows of

financial instruments will fluctuate due to changes in foreign exchange rates.The exchange rate risk borne by the Company is mainly related to the US dollar

Hong Kong dollar Japanese yen and euro. Except for the Company's small amount

of raw material purchases and finished product sales settled in US dollars Hong

Kong dollars Japanese yen and euros the Company's other major business

activities are settled in RMB. As of June 30 2026 the assets or liabilities described

in the following table are the balances of US dollars Hong Kong dollars Japanese

yen and euros shown in the items:

Items 2026/06/30 2025/12/31

Cash and cash equivalents - USD 778908113.17 92017493.96

Cash and cash equivalents - HKD

Non-current liabilities due within one 974434.92 1038284.80

year - JPY

Long-term loans - JPY 487217.46 1038284.80

Accounts receivable – USD 849139404.55 663734936.95

Accounts payable - USD 103031832.45 42678053.96

Total 1732541002.55 800507054.47

(2) Transfer of financial assets

1. Transfer of financial assets

211Bengang Steel Plates Co. Ltd. Interim Report 2026

Financial asset Transferred financial assets Information of

transfer method Basis of derecognition

Nature Amount derecognition

Retains substantially

Bill

endorsement/bill Notes

all of its risks and

Receivable 107070828.39 Not derecognized rewards including thediscount default risk associated

with it

Bill Accounts Almost all of its risks

endorsement/bill Receivable 3096989289.16 Derecognized and rewards have

discount Financing been transferred

Total 3204060117.55

Notes to the basis of derecognition: As of June 30 2026 the maturity date of accounts receivable

financing is 1 to 12 months. According to the relevant provisions of the Bills of Exchange Law if

the accepting bank refuses to pay the holder has the right to claim against the Company. The

Company believes that the Company has transferred almost all its risks and rewards and therefore

fully terminate the recognition of its and related settled accounts payable and confirm the discount

fees.

2. Financial assets derecognized due to transfer

Methods of transferring Amount of Gains or losses related

Items derecognition to derecognition

financial assets

Accounts

Bill endorsement/bill

receivable 3096989289.16 13097016.21

discounting

financing

Total 3096989289.16 13097016.21

10. Disclosure of fair value

The input value used in fair value measurement is divided into three levels:

The input value of the first level is the unadjusted quotation of the same asset or liability that can

be obtained on the measurement date in an active market.The input value of the second level is the input value of the related assets or liabilities that is

directly or indirectly observable except the input value of the first level.The third level of input value is the unobservable input value of related assets or liabilities.The level to which the fair value measurement result belongs is determined by the lowest level to

which the input value that is important to the fair value measurement as a whole belongs.

(1) Fair value of assets and liabilities measured at fair value at the end of the period

212Bengang Steel Plates Co. Ltd. Interim Report 2026

Fair value at the end of the period

Items First level Second level Third level fairfair value fair value value

measurement measurement measurement Total

1. Continuous fair value

measurement

Accounts receivable

256934534.14256934534.14

financing

Other equity instrument

890420831.77890420831.77

investments

11. Related parties and related transactions

(1) Details of parent company

Name of parent Place of Business Registered Share Voting

company Registry nature capital proportion(%) rights (%)

RMB

Benxi Steel & Iron Benxi

Manufacturing 9.825 58.65 58.65

(Group) Co. Ltd. Liaoning

billion

The ultimate controlling party of the Company: Ansteel Group Co. Ltd.

(2) Details of the Company’s subsidiaries

For details of the Company’s subsidiaries please refer to Note 7 “Equity in Other Entities”.

(3) The company's joint ventures and associatesFor details of the Company's important joint ventures or associates please refer to Note 7 “Equityin Other Entities”.Other joint ventures or associates that had related-party transactions with the Company during the

current period or had balances resulting from related-party transactions with the Company in prior

periods are described below:

Name of joint venture or associated enterprise Relationship

Shenyang Xiangyu New Materials Technology Co. Ltd. Associate

(4) Other related parties

213Bengang Steel Plates Co. Ltd. Interim Report 2026

Name of other related parties Relationship between other relatedparties and the Company

Bengang Group Co. Ltd. Parent company's controllingshareholder

Benxi Iron and Steel (Group) Co. LTD Parent company

Bengang Stainless Steel Cold Rolling Dandong Co. Ltd. Same parent company

Bengang Gaoyuan Industrial Development Co. Ltd. Same parent company

Bengang Group Dalian Refractory Materials Co. Ltd Same parent company

Benxi Aike Hydraulic Sealing Co. Ltd. Same parent company

Benxi Dongfenghu Steel Resource Utilization Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Real Estate Development Co.Ltd. Same parent company

Benxi Iron and Steel (Group) Engineering Construction

Supervision Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Machinery Manufacturing Co.Ltd. Same parent company

Benxi Iron and Steel (Group) Construction Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Mining Construction Engineering

Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Pellet

Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Mining Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Thermal Power Development

Co. Ltd. Same parent company

Benxi Steel (Group) Equipment Engineering Co. Ltd. Same parent company

Benxi Iron and Steel (Group) Industrial Development Co. Ltd. Same parent company

Benxi Xihu Metallurgical Furnace Material Co. Ltd. Same parent company

Benxi Weld Phosphate Overlay Manufacturing Co. Ltd. Same parent company

Benxi New Industrial Development Co. Ltd. Same parent company

Liaoning Hengtai Heavy Machinery Co. Ltd. Same parent company

Liaoning Hengtong Metallurgical Equipment Manufacturing

Co. Ltd. Same parent company

Liaoning Metallurgical Technician College Same parent company

Liaoning Metallurgical Vocational Technical College Same parent company

Liaoning Yitong Machinery Manufacturing Co. Ltd. Same parent company

Beijing Tianhongshan Hotel Co. Ltd. Same parent company

Liaoning Slag Micro-powder Co. Ltd. Same parent company

Bengang Group International Economic and Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.

214Bengang Steel Plates Co. Ltd. Interim Report 2026

Name of other related parties Relationship between other relatedparties and the Company

Benxi Northern Iron Industry Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beiying Iron and Steel (Group) Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Liaoyang Jiajiabao Iron Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.? Liaoning Hengyi Steel Trade Co. Ltd. Belongs to Bengang Group Co.Ltd.Liaoning Lide Internet of Things Co. Ltd. Belongs to Bengang Group Co.Ltd.Tianjin Bengang Plate Processing & Distribution Co. Ltd. Belongs to Bengang Group Co.Ltd.Benxi Beifang Steel Rolling Co.Ltd. Belongs to Bengang Group Co.Ltd.Benxi Iron and Steel (Group) Mining Yanjia Valley Limestone Belongs to Bengang Group Co.Mine Co. Ltd. Ltd.Angang (Hangzhou) Automotive Materials Technology Co.Ltd. Belongs to Angang Group Co. Ltd.Angang (Liaoning) Materials Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Electrical Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Scrap Resources (Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Dalian) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Changchun) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Hefei) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Distribution (Wuhan) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Rope Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Engineering Production Operations & Maintenance

(Anshan) Co. Ltd. Belongs to Angang Group Co. Ltd.

Angang Steel Company Limited Belongs to Angang Group Co. Ltd.Angang Chemical Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Railway Equipment Checking & Repairing

Company Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group International Economic & Trade Co. Ltd.Benxi Branch Belongs to Angang Group Co. Ltd.Angang Group Mining Gongchangling Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Automation Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Construction Group Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Mining Machinery Manufacturing Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Green Resources Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Energy Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Automobile Transportation Co.Ltd. Belongs to Angang Group Co. Ltd.

215Bengang Steel Plates Co. Ltd. Interim Report 2026

Name of other related parties Relationship between other relatedparties and the Company

Angang Industrial Group Metallurgical Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Shuangsheng (Anshan) Fan Co. Ltd Belongs to Angang Group Co. Ltd.Ansteel Water Technology (Liaoning) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Design & Research Institute Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Heavy Machinery Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Angang International Travel Agency Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron & Steel Metallurgical Furnace Material

Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Jianbo Engineering Testing Co. Ltd. Belongs to Angang Group Co. Ltd.Benxi Steel and Iron (Group)Tengda Co. Ltd. Belongs to Angang Group Co. Ltd.Benxi Iron and Steel (Group) Information Automation Co.Ltd. Belongs to Angang Group Co. Ltd.DeLin Industrial Products Co. Ltd. Belongs to Angang Group Co. Ltd.DeLin Land Port Supply Chain Services Co. Ltd. Belongs to Angang Group Co. Ltd.Guangzhou Angang Steel Processing Co. Ltd. Belongs to Angang Group Co. Ltd.Lingyuan Iron & Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Jiangyou Great Wall Special Steel Co. Ltd. Belongs to Angang Group Co. Ltd.Panzhong Yihong Metal Products (Chongqing) Co. Ltd. Belongs to Angang Group Co. Ltd.Shenyang Angang International Trade Co. Ltd. Belongs to Angang Group Co. Ltd.Tianjin Angang Steel Processing & Distribution Co. Ltd. Belongs to Angang Group Co. Ltd.Changchun FAW Angang Steel Processing & Distribution Co.Ltd. Belongs to Angang Group Co. Ltd.Angang Steel Processing & Distribution (Zhengzhou) Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Group Beijing Research Institute Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Group Mining Co. LTD Belongs to Angang Group Co. Ltd.Ansteel Group Co. Ltd Belongs to Angang Group Co. Ltd.Angang Green Gold Industry Development Co. Ltd. Belongs to Angang Group Co. Ltd.Angang ShenYang Steel Service Centre Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Industrial Group (Anshan) Equipment Operation &

Maintenance Co. Ltd. Belongs to Angang Group Co. Ltd.Angang Tendering Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Cast Steel Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Group Co. Ltd. Belongs to Angang Group Co. Ltd.Anshan Iron and Steel Labor Research Institute Technology

Co. Ltd. Belongs to Angang Group Co. Ltd.

216Bengang Steel Plates Co. Ltd. Interim Report 2026

Name of other related parties Relationship between other relatedparties and the Company

Anzi (Tianjin) Financial Leasing Co. Ltd. Belongs to Angang Group Co. Ltd.Chengdu Xingyun Smart Technology Co. Ltd. Belongs to Angang Group Co. Ltd.Pangang Group Chengdu Vanadium & Titanium Resources

Development Co. Ltd. Belongs to Angang Group Co. Ltd.Yantai Angang International Trading Co. Ltd. Belongs to Angang Group Co. Ltd.Ansteel Guangzhou Automotive Steel Co. Ltd. Associate of Ansteel Group

Angang Group Engineering Technology Co. Ltd. Associate of Ansteel Group

Angang Mining Construction Co. Ltd. Associate of Ansteel Group

Beijing Zhongliangang E-commerce Co. Ltd. Associate of Ansteel Group

Bengang Electrical Co. Ltd. Associate of Ansteel Group

Bengang Automotive Transport Co. Ltd. Associate of Ansteel Group

Benxi Gaoxin Drilling Tools Manufacturing Co. Ltd. Associate of Ansteel Group

Heilongjiang Longmei Mining Group Co. Ltd. Associate of Ansteel Group

Hongda Engineering Technology (Liaoning) Co. Ltd. Associate of Ansteel Group

Pangang Group Engineering Technology Consulting Co. Ltd. Associate of Ansteel Group

Shenyang Xiangyu New Materials Technology Co. Ltd. Associate of Ansteel Group

China Ordins Group Co.Ltd. Associate of Ansteel Group

MCC Northern Engineering & Technology Co. Ltd. Associate of Ansteel Group

MCC South Engineering & Technology Co. Ltd. Associate of Ansteel Group

MCC-CEI Engineering Technology Co. Ltd. Associate of Ansteel Group

Ansteel Group Energy-Saving Technology Service Co. Ltd. Associate of Ansteel Group

Angang Mining Resource Utilization (Anshan) Co. Ltd. Associate of Ansteel Group

Benxi Yuneng Thermal Power Co. Ltd. Joint Ventures of Ansteel Group

(5) Related-party transactions

1. Related party transactions of purchasing and selling goods and services

Purchasing goods and services

Related parties Content of relatedtransactions Current period Previous period

Angang (Liaoning) Materials Professional

Technology Co. Ltd. service fees 377358.49

Angang (Liaoning) Materials

Technology Co. Ltd. Engineering costs 218000.00

217Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Angang Electrical Co. Ltd. Repair costs 530400.00 756800.00

Angang Scrap Resources (Anshan)

Co. Ltd. Scrap steel 340185980.44

Angang Scrap Resources (Anshan)

Co. Ltd. Raw material 22561474.22

Angang Steel Processing &

Distribution (Dalian) Co. Ltd. Steel products 498216.10 441290.28

Angang Steel Processing &

Distribution (Dalian) Co. Ltd. Processing fee 18984.68 153382.41

Angang Steel Processing &

Distribution (Changchun) Co. Ltd. Warehousing fees 5364.32

Angang Steel Processing &

Distribution (Changchun) Co. Ltd. Processing fee 529511.42 680768.33

Angang Steel Processing &

Distribution (Zhengzhou) Co. Ltd. Warehousing fees 847612.34

Angang Engineering Technology

Survey and Design Institute (Anshan) Auxiliary 797914.39

Co. Ltd. materials

Angang Steel Company Limited Auxiliarymaterials 2795871.00 3205093.05

Ansteel Group Railway Equipment

Checking&Repairing Company Spare parts 146544.00

Ansteel Group Anqian Mining Co.Ltd. Raw material 24623724.73

Angang Group Beijing Research Professional

Institute Co. Ltd. service fees 1650943.40

Angang Group Engineering Safety Production

Technology Co. Ltd. Fee 70000.00 115000.00

Angang Group Engineering

Technology Co. Ltd. Spare parts 13537248.04 132877141.50

Angang Group Engineering

Technology Co. Ltd. Engineering costs 48169057.57 154988539.06

Angang Group Engineering

Technology Co. Ltd. Repair costs 545000.00 757900.00

Angang Group Engineering Professional

Technology Co. Ltd. service fees 2313486.31

Angang Group International

Economic & Trade Co. Ltd. Fuel 97939165.75

Angang Group International

Economic & Trade Co. Ltd. Spare parts 75963959.03 582749.35

Angang Group International

Economic & Trade Co. Ltd. Agency fee 784232.81 18028337.20

Angang Group International Port

Economic & Trade Co. Ltd. miscellaneous 34780163.92charges

Angang Group International

Economic & Trade Co. Ltd. Raw material 12223026.32

Angang Group Energy-Saving Professional

Technology Services Co. Ltd. service fees 2057051.26 3317075.13

Angang Group Mining

Gongchangling Co. Ltd. Raw material 173922514.93 76800921.59

Ansteel Group Mining Co. LTD Raw material 76121547.07 1482101.33

Ansteel Group Co. Ltd Sales service fee 6505306.24

Ansteel Group Co. Ltd Administrativeexpenses 168137.61

Ansteel Group Co. Ltd Training fees 5094.34

Angang Group Automation Co. Ltd. Engineering costs 1600000.00 1600000.00

Angang Construction Group Co. Ltd. Repair costs 268000.00

Angang Construction Group Co. Ltd. Engineering costs 10246537.92

Angang Construction Group Co. Ltd. Spare parts 5653200.00

218Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Angang Mining Construction Co.Ltd. Repair costs 7059723.44

Angang Mining Resource Utilization

(Anshan) Co. Ltd. Raw material 169024309.37

Angang Green Gold Industry Professional

Development Co. Ltd. service fees 413590.02

Angang Green Resources

Technology Co. Ltd. Shipping costs 4744570.38

Ansteel Automobile Transportation

Co.Ltd. Shipping costs 3796782.87 1442670.52

Angang ShenYang Steel Service

Centre Co.Ltd. Processing fee 6261.54

Angang Industrial Group (Anshan)

Equipment Operation & Maintenance Professional 3729392.58 2780930.40

Co. Ltd. service fees

Angang Industrial Group

Metallurgical Machinery Co. Ltd. Repair costs 321820.00 607165.00

Angang Industrial Group

Metallurgical Machinery Co. Ltd. Spare parts 5449100.31

Ansteel Shuangsheng (Anshan) Fan

Co. Ltd Repair costs 215000.00

Ansteel Water Technology Professional

(Liaoning) Co. Ltd. service fees 53721329.80

Ansteel Water Technology Auxiliary

(Liaoning) Co. Ltd. materials 1612185.98

Angang Modern Urban Services

(Anshan) Co. Ltd. Anshan Dongshan 10188.68

Hotel Branch Travel expenses

Angang Heavy Machinery Co. Ltd. Spare parts 1657222.00 3257110.00

Angang Heavy Machinery Co. Ltd. Repair costs 721236.00 286000.00

Anshan Angang International Travel Business Travel

Agency Co. Ltd. 84348.98 11721.71Service Fee

Anshan Iron & Steel Metallurgical

Furnace Material Technology Co. Auxiliary 1526938.87

Ltd. materials

Anshan Jianbo Engineering Testing

Co. Ltd. Engineering costs 170000.00

Anzi (Tianjin) Financial Leasing Co. Professional

Ltd. service fees 7816256.78 8448103.98

Bengang Stainless Steel Cold Rolling

Dandong Co. Ltd. Spare parts 836410.79

Bengang Electrical Co. Ltd. Raw material 82676012.07 97672744.51

Bengang Electrical Co. Ltd. Repair costs 5438438.70 13890147.57

Bengang Gaoyuan Industrial

Development Co. Ltd. Repair costs 3945480.00 360120.00

Information

Bengang Gaoyuan Industrial System Operation

Development Co. Ltd. and Maintenance 124000.00

Fees

Bengang Gaoyuan Industrial

Development Co. Ltd. Spare parts 2471880.00

Bengang Gaoyuan Industrial

Development Co. Ltd. Engineering costs 1280000.00

Bengang Group Dalian Refractory Auxiliary

Materials Co. Ltd materials 1830776.63

Bengang Group International

Economic and Trade Co. Ltd. Agency fee 3258589.55

Bengang Automotive Transport Co.Ltd. Shipping costs 49000176.98 39010514.24

Bengang Automotive Transport Co.Ltd. Spare parts 236948.64 363773.94

219Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi Aike Hydraulic Sealing Co.Ltd. Spare parts 4833745.20 2155588.70

Benxi Northern Iron Industry Co.Ltd. Raw material 5770319.12

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Raw material 5050621376.21 5928330534.06

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Fuel 824135668.44 642622442.63

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Energy and Power 358738612.69 356672847.08

Benxi Beiying Iron and Steel (Group) Total service

Co. Ltd. contract fee 47641965.27 39283771.00

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Steel products 23261661.77

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Heating fee 5725488.15 7479982.49

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Shipping costs 3120254.03 3158081.08

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Weighing fee 1755103.96 757653.87

Benxi Beiying Iron and Steel (Group) Chemical testing

Co. Ltd. fees 1440438.00 701444.94

Benxi Beiying Iron and Steel (Group) Auxiliary

Co. Ltd. materials 563081.15 4929741.55

Benxi Beiying Iron and Steel (Group)

Co. Ltd. Repair costs 5936845.14

Benxi Dongfenghu Steel Resource

Utilization Co. Ltd. Raw material 6026969.66 2060273.59

Benxi Dongfenghu Steel Resource Auxiliary

Utilization Co. Ltd. materials 2155098.54

Benxi Dongfenghu Steel Resource

Utilization Co. Ltd. Scrap steel 141062.60 4390797.95

Benxi Dongfenghu Steel Resource

Utilization Co. Ltd. Fuel 2832492.90

Benxi Iron and Steel (Group)

Engineering Construction 731081.00 885990.00

Supervision Co. Ltd. Engineering costs

Benxi Iron and Steel (Group)

Engineering Construction 45100.00

Supervision Co. Ltd. Repair costs

Benxi Steel and Iron(Group)Tengda

Co.Ltd. Shipping costs 256198377.77 265344221.52

Benxi Steel and Iron(Group)Tengda Port

Co.Ltd. miscellaneous 15001336.44 19137576.17charges

Benxi Steel and Iron(Group)Tengda

Co.Ltd. Fuel 37694.33

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Spare parts 70461844.77 71048366.15

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Engineering costs 21462979.00 12056060.00

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Repair costs 8482403.92 14497730.01

Benxi Iron and Steel (Group) Auxiliary

Machinery Manufacturing Co. Ltd. materials 4564057.74 19201582.27

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Shipping costs 2861626.42

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Scrap steel 2707095.75 3281399.65

Benxi Iron and Steel (Group) Professional

Machinery Manufacturing Co. Ltd. service fees 2040537.85 11125410.24

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Raw material 1022668.80

220Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. Ltd. Processing fee 715635.73

Benxi Iron and Steel (Group)

Construction Co. Ltd. Engineering costs 50890047.99 98463744.89

Benxi Iron and Steel (Group)

Construction Co. Ltd. Spare parts 22232904.35 40671630.40

Benxi Iron and Steel (Group) Packaging

Construction Co. Ltd. materials 19218706.53 7858038.99

Benxi Iron and Steel (Group)

Construction Co. Ltd. Repair costs 15558550.00 25127019.56

Benxi Iron and Steel (Group) Professional

Construction Co. Ltd. service fees 13193186.86 2129290.66

Benxi Iron and Steel (Group) Auxiliary

Construction Co. Ltd. materials 10421070.46

Benxi Iron and Steel (Group) Safety Production

Construction Co. Ltd. Fee 4269000.00 2000000.00

Benxi Iron and Steel (Group)

Construction Co. Ltd. Scrap steel 735892.70 684102.60

Benxi Iron and Steel (Group) Total service

Construction Co. Ltd. contract fee 337500.00 9485344.02

Benxi Iron and Steel (Group) Mining

Construction Engineering Co. Ltd. 6478631.22 8260865.00Repair costs

Benxi Iron and Steel (Group) Mining

Construction Engineering Co. Ltd. 4136346.36 9058913.26Engineering costs

Benxi Iron and Steel (Group) Mining Safety Production

Construction Engineering Co. Ltd. 3755666.00Fee

Benxi Iron and Steel (Group) Mining

Construction Engineering Co. Ltd. 665070.00Spare parts

Benxi Iron and Steel (Group) Mining Security and Fire

Construction Engineering Co. Ltd. 150000.00Safety Fees

Benxi Steel Group Mining Liaoyang

Jiajiapu Iron Mine Co. Ltd. Scrap steel 109337.00 152672.10

Benxi Steel Group Mining Liaoyang

Ma'erling Pelletizing Co. Ltd. Raw material 798319446.15 1103428540.37

Benxi Steel Group Mining Liaoyang

Ma'erling Pelletizing Co. Ltd. Scrap steel 295225.20 279470.60

Benxi Iron and Steel (Group) Mining

Co. Ltd. Raw material 1998989751.39 1955904869.50

Benxi Iron and Steel (Group) Mining Auxiliary

Co. Ltd. materials 176166421.58 190158542.30

Benxi Iron and Steel (Group) Mining

Co. Ltd. Energy and Power 8333348.83

Benxi Iron and Steel (Group) Mining

Co. Ltd. Scrap steel 5362194.50 6632504.30

Benxi Iron and Steel (Group)

Thermal Power Development Co. 12460.50 134558.60

Ltd. Scrap steel

Benxi Steel Group Equipment

Engineering Co. Ltd. Repair costs 265930444.22 164381618.86

Benxi Steel Group Equipment

Engineering Co. Ltd. Engineering costs 29902270.69 151358466.41

Benxi Steel Group Equipment Professional

Engineering Co. Ltd. service fees 21198375.67 3224355.85

Benxi Steel Group Equipment

Engineering Co. Ltd. Spare parts 10866495.94 48292094.06

Benxi Steel Group Equipment Environmental

Engineering Co. Ltd. 2450000.00testing fees

Benxi Steel (Group) Equipment

Engineering Co. Ltd. Scrap steel 1027804.70 3157479.46

Chengdu Pangang Hotel Co. Ltd. Safety ProductionFee 506000.00

221Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi Steel Group Industrial

Development Co. Ltd. Scrap steel 80646693.88 121909386.44

Benxi Steel Group Industrial

Development Co. Ltd. Raw material 5433479.31 5438923.10

Benxi Steel Group Industrial

Development Co. Ltd. Landscaping fee 970000.00 3526920.00

Benxi Steel Group Industrial

Development Co. Ltd. Shipping costs 393821.95 1581235.29

Benxi Steel Group Industrial

Development Co. Ltd. Repair costs 39750.00 1835300.00

Benxi Steel Group Industrial Auxiliary

Development Co. Ltd. materials 10345140.58

Information

Benxi Steel Group Information System Operation

Automation Co. Ltd. and Maintenance 61452500.00 12000000.00

Fees

Benxi Steel Group Information

Automation Co. Ltd. Engineering costs 21614382.58 27709556.87

Benxi Steel Group Information

Automation Co. Ltd. Spare parts 7192635.00 121702123.12

Benxi Steel Group Information

Automation Co. Ltd. Repair costs 1380000.00 1242500.00

Benxi Steel Group Information Safety Production

Automation Co. Ltd. Fee 189000.00

Benxi Iron and Steel (Group) Co. Safety Production

LTD Fee 1912300.00 1783000.00

Benxi Iron and Steel (Group) Co. Professional

LTD service fees 720000.00 10109583.40

Benxi Iron and Steel (Group) Co.LTD Engineering costs 166592.46 119266.91

Benxi Iron and Steel (Group) Co.LTD Waste materials 88548.55 13814.61

Benxi Iron and Steel (Group) Co.LTD Energy and Power 112938.29

Benxi Xihu Metallurgical Furnace

Material Co. Ltd. Raw material 146301805.63 81308481.29

Benxi New Industrial Development

Co. Ltd. Landscaping fee 3498468.00

Benxi New Industrial Development Administrative

Co. Ltd. expenses 289202.71 691553.87

Benxi New Industrial Development Auxiliary

Co. Ltd. materials 258896.84

Benxi New Industrial Development Property

Co. Ltd. 177169.80 313090.29management fees

Benxi New Industrial Development Business

Co. Ltd. entertainment 41123.00 94085.00expenses

Benxi New Industrial Development

Co. Ltd. Scrap steel 22295.00

Benxi Yuneng Thermal Power Co.Ltd. Energy and Power 294123473.93

DeLin Industrial Products Co. Ltd. Spare parts 7508252.81 26641853.28

Delin Industrial Products Co. Ltd Auxiliarymaterials 6348515.96 8783673.06

Delin Industrial Products Co. Ltd Administrativeexpenses 2019.61

Delin Land Port Supply Chain

Services Co. Ltd Shipping costs 4132890.52

Delin Land Port Supply Chain

Services Co. Ltd Sales service fee 881937.88 183674.08

Delin Land Port Supply Chain

Services Co. Ltd Steel products 530739.05

222Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Delin Land Port Supply Chain

Services Co. Ltd Warehousing fees 215212.55 373238.29

Liaoning Hengtai Heavy Machinery

Co. Ltd. Repair costs 8892273.35 4246052.00

Liaoning Hengtai Heavy Machinery

Co. Ltd. Spare parts 8245711.94 16778600.48

Liaoning Hengtai Heavy Machinery

Co. Ltd. Processing fee 2123410.21

Liaoning Hengtai Heavy Machinery Professional

Co. Ltd. service fees 2073068.34 322275.00

Liaoning Hengtai Heavy Machinery

Co. Ltd. Engineering costs 972000.00

Liaoning Hengtai Heavy Machinery Safety Production

Co. Ltd. Fee 788000.00 2280000.00

Liaoning Hengtai Heavy Machinery Auxiliary

Co. Ltd. materials 543733.60

Liaoning Hengtai Heavy Machinery

Co. Ltd. Shipping costs 125692.32 115957.00

Liaoning Hengtai Heavy Machinery

Co. Ltd. Scrap steel 29170.80 177158.80

Liaoning Hengtong Metallurgical

Equipment Manufacturing Co. Ltd. Spare parts 66135692.86 77092898.25

Liaoning Hengtong Metallurgical

Equipment Manufacturing Co. Ltd. Repair costs 5606450.00 4394740.00

Liaoning Lide Internet of Things Co.Ltd. Logistics costs 83961151.49 87600249.58

Liaoning Lide Internet of Things Co.Ltd. Shipping costs 47886659.50 55529050.22

Liaoning Yitong Machinery

Manufacturing Co. Ltd. Spare parts 13645329.95 10817042.15

Liaoning Yitong Machinery

Manufacturing Co. Ltd. Scrap steel 179707.00 219054.88

Liaoning Yitong Machinery

Manufacturing Co. Ltd. Repair costs 150000.00 5424.79

Lingyuan Iron & Steel Group Co.Ltd. Fuel 14228106.98

Pangang Group Chengdu Vanadium

& Titanium Resources Development 4795258.97 3474192.31

Co. Ltd. Raw material

Pangang Group Engineering

Technology Consulting Co. Ltd. Engineering costs 102759.25 300000.00

Shenyang Angang International

Trade Co. Ltd. Steel products 55314087.87

Shenyang Xiangyu New Materials

Technology Co. Ltd. Processing fee 7169116.15 8001.22

Tianjin Bengang Plate Processing &

Distribution Co. Ltd. Sales service fee 2187972.19

Tianjin Bengang Plate Processing &

Distribution Co. Ltd. Processing fee 26748.97 177897.21

Tianjin Bengang Plate Processing &

Distribution Co. Ltd. Warehousing fees 767.79 4924.50

MCC South Engineering &

Technology Co. Ltd. Engineering costs 141509.40

Selling goods and services

Related parties Content of relatedtransactions Current period Previous period

Angang (Hangzhou) Automotive Steel and steel

Materials Technology Co. Ltd. products 51301661.00 9368825.32

223Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Angang Steel Processing and Logistics and

Distribution (Dalian) Co. Ltd. transportation 13359.05revenue

Angang Steel Processing and Steel and steel

Distribution (Dalian) Co. Ltd. products 13764301.69 10300639.87

Angang Steel Processing and Logistics and

Distribution (Dalian) Co. Ltd. transportation 6572.87revenue

Angang Steel Processing and Processing

Distribution (Changchun) Co. Ltd. income 709.9

Angang Steel Processing and Steel and steel

Distribution (Zhengzhou) Co. Ltd. products 218163.51 1009155.91

Ansteel Steel Distribution (Hefei) Steel and steel

Co. Ltd. products 351325.87 2951005.24

Ansteel Steel Distribution (Wuhan) Steel and steel

Co. Ltd. products 1067030.03 199242.28

Angang Steel Company Limited Steel and steelproducts 7771791.09 3096311.53

Ansteel Guangzhou Automotive Steel Steel and steel

Co. Ltd. products 2164778.94 3967763.31

Angang Chemical Technology Co. Chemicals and

Ltd. by-products 128517755.72 136032448.22

Angang Group Engineering &

Technology Co. Ltd. Energy and Power 16447.08

Angang Group International Steel and steel

Economic & Trading Co. Ltd. products 81038222.93

Angang Group International

Economic & Trade Co. Ltd. — Energy and Power 3038017.82 2164597.81

Benxi Branch

Angang Group Energy-Saving Revenue from

Technology Services Co. Ltd. other labor 1351.70services

Ansteel Group Co. Ltd Energy and Power 3197.39 5043.59

Angang Group Automation Co. Ltd. Energy and Power 405.51

Angang Construction Group Co. Ltd. Energy and Power 279.46

Angang Mining Machinery Steel and steel

Manufacturing Co. Ltd. products 989314.50 15442967.67

Angang Green Resources Technology Revenue from

Co. Ltd. sales of materials 22342277.15 5193872.81

Angang Energy Technology Co. Ltd. Energy and Power 9227331.26 9514672.04

Angang ShenYang Steel Service Steel and steel

Centre Co. Ltd. products 997494.65

Angang Industrial Group Steel and steel

Metallurgical Machinery Co. Ltd. products 868508.40

Ansteel Water Technology (Liaoning)

Co. Ltd. Energy and Power 9076027.61

Angang Tendering Co. Ltd. Benxi

Branch Energy and Power 11799.68 10309.54

Ansteel Cast Steel Co. Ltd. Scrap steel 19359536.55

Bengang Group Dalian Refractory Steel and steel

Materials Co. Ltd products 4623540.66

Bengang Group Co. Ltd. Energy and Power 91983.49 101034.27

Bengang Automotive Transport Co.Ltd. Energy and Power 33231.55 37763.43

Benxi Northern Iron Industry Co. Revenue from

Ltd. sales of materials 114714220.41 82809635.97

224Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi Northern Iron Industry Co. Steel and steel

Ltd. products 2073673.14

Benxi Beifang Steel Rolling Co. Ltd. Steel and steelproducts 1106623.83

Benxi Beiying Iron and Steel (Group)

Co. LTD Scrap steel 62100724.34 116769194.64

Benxi Beiying Iron and Steel (Group)

Co. LTD Energy and Power 26756951.29 27444939.22

Benxi Beiying Iron and Steel (Group) Revenue from

Co. LTD sales of materials 19457887.20 60577878.51

Benxi Beiying Iron and Steel (Group) Steel and steel

Co. LTD products 9647090.80 5450040.45

Benxi Dongfenghu Steel Resource

Utilization Co. Ltd. Energy and Power 2134873.10 2119069.66

Benxi Dongfenghu Steel Resource Revenue from

Utilization Co. Ltd. sales of materials 1129055.31 938696.51

Benxi Dongfenghu Steel Resource Chemicals and

Utilization Co. Ltd. by-products 3079247.01

Benxi Dongfenghu Steel Resource Revenue from

Utilization Co. Ltd. other labor 21698.11services

Benxi Iron and Steel (Group) Real

Estate Development Co. Ltd. Energy and Power 1606.30 1599.21

Benxi Iron and Steel (Group)

Engineering Construction Supervision Energy and Power 462.3 874.86

Co. Ltd.Benxi Steel and Iron (Group)Tengda Steel and steel

Co. Ltd. products 35448.81

Benxi Iron and Steel (Group)

Machinery Manufacturing Co. LTD Energy and Power 5944739.52 5016994.98

Benxi Iron and Steel (Group) Revenue from

Machinery Manufacturing Co. LTD other labor 281169.82 69556.60services

Benxi Iron and Steel (Group) Revenue from

Machinery Manufacturing Co. LTD sales of materials 135163.64

Benxi Iron and Steel (Group) Steel and steel

Machinery Manufacturing Co. LTD products 8921510.61

Benxi Iron and Steel (Group) Processing

Machinery Manufacturing Co. LTD income 13746.33

Benxi Iron and Steel (Group) Logistics and

Machinery Manufacturing Co. LTD transportation 1128.28revenue

Benxi Iron and Steel (Group)

Construction Co. Ltd Energy and Power 462423.52 1456705.56

Benxi Iron and Steel (Group) Revenue from

Construction Co. Ltd other labor 337.92services

Benxi Iron and Steel (Group) Mining

Construction Engineering Co. Ltd. Energy and Power 50561.78 83862.76

Benxi Iron and Steel (Group) Mining Revenue from

Construction Engineering Co. Ltd. other labor 1069.81services

Benxi Iron and Steel (Group) Mining Steel and steel

Construction Engineering Co. Ltd. products 95376.11

Benxi Iron and Steel (Group) Mining

Liaoyang Jiajiabao Iron Mine Co. Energy and Power 8170.56 12131.93

Ltd.

225Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi Iron and Steel (Group) Mining Revenue from

Liaoyang Jiajiabao Iron Mine Co. other labor 38730.00

Ltd. services

Benxi Steel Group Mining Liaoyang Revenue from

Ma'erling Pelletizing Co. Ltd. sales of materials 18578560.91 6342966.56

Benxi Steel Group Mining Liaoyang Revenue from

Ma'erling Pelletizing Co. Ltd. other labor 91792.45services

Benxi Steel Group Mining Liaoyang

Ma'erling Pelletizing Co. Ltd. Energy and Power 4081.11 2868.70

Benxi Iron and Steel (Group) Mining

Co. LTD Energy and Power 96167352.26 84987278.36

Benxi Iron and Steel (Group) Mining Revenue from

Co. LTD sales of materials 28193823.48 28735073.43

Benxi Iron and Steel (Group) Mining Steel and steel

Co. LTD products 4757281.05 5421571.34

Benxi Iron and Steel (Group) Mining Logistics and

Co. LTD transportation 3891739.52 3443385.04revenue

Benxi Iron and Steel (Group) Mining Chemicals and

Co. LTD by-products 2334051.65 2637463.15

Benxi Iron and Steel (Group) Mining Revenue from

Co. LTD other labor 914994.35services

Benxi Iron and Steel (Group)

Thermal Power Development Co. Energy and Power 15815766.52 13818458.98

Ltd.Benxi Iron and Steel (Group)

Thermal Power Development Co. Revenue fromsales of materials 2742978.35 9998954.55Ltd.Benxi Iron and Steel (Group)

Equipment Engineering Co. LTD Energy and Power 929521.86 1245472.05

Benxi Iron and Steel (Group) Revenue from

Equipment Engineering Co. LTD other labor 15720.46services

Benxi Iron and Steel (Group) Steel and steel

Equipment Engineering Co. LTD products 385719.02

Benxi Iron and Steel (Group) Revenue from

Industrial Development Co. LTD sales of materials 44727709.67 40478465.08

Benxi Iron and Steel (Group)

Industrial Development Co. LTD Energy and Power 4854064.86 3828288.42

Benxi Iron and Steel (Group)

Industrial Development Co. LTD Waste materials 9225164.59

Benxi Steel Group Information

Automation Co. Ltd. Energy and Power 152790.58 219503.20

Benxi Iron and Steel (Group) Co.LTD Energy and Power 4595824.55 5656233.48

Benxi Iron and Steel (Group) Co. Revenue from

LTD other labor 589400.00services

Benxi Iron and Steel (Group) Co. Revenue from

LTD sales of materials 208985.53 410792.54

Benxi Xihu Metallurgical Furnace

Material Co. Ltd. Energy and Power 168974.00 262237.50

Benxi Weld Phosphate Overlay

Manufacturing Co. Ltd. Energy and Power 19480.21

Benxi New Industrial Development

Co. Ltd. Energy and Power 256518.45 142545.86

226Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

Benxi New Industrial Development Revenue from

Co. Ltd. other labor 2757.74services

Benxi Yuneng Thermal Power Co.Ltd. Energy and Power 265735931.04

Chengdu Tianfu Huirong Information Revenue from

Technology Co. Ltd. other labor 117223.01services

Dalian Bolore Steel Pipe Co. Ltd. Steel and steelproducts 441221.12

Delin Land Port Supply Chain Steel and steel

Services Co. Ltd products 1439614145.10 1638270756.52

Guangzhou Ansteel Steel Processing Steel and steel

Co. Ltd. products 38928259.75 35403058.32

Liaoning Hengtai Heavy Machinery

Co. Ltd. Energy and Power 697.03

Liaoning Hengtong Metallurgical Revenue from

Equipment Manufacturing Co. Ltd. sales of materials 10652518.71 10127300.63

Liaoning Hengtong Metallurgical

Equipment Manufacturing Co. Ltd. Waste materials 4568305.20 6227055.46

Liaoning Hengtong Metallurgical Revenue from

Equipment Manufacturing Co. Ltd. other labor 91845.47 47688.68services

Liaoning Lide Internet of Things Co.Ltd. Energy and Power 68653.97

Liaoning Yitong Machinery

Manufacturing Co. Ltd. Energy and Power 13413.30

Lingyuan Iron & Steel Co. Ltd. Processingincome 19015707.57

Information

Lingyuan Iron & Steel Co. Ltd. technology 62264.15

service revenue

Lingyuan Iron & Steel Co. Ltd. Steel and steelproducts 246.84

Pangang Group Jiangyou Great Wall Steel and steel

Special Steel Co. Ltd. products 10735619.88 15594024.81

Panzhong Yihong Metal Products Steel and steel

(Chongqing) Co. Ltd. products 583915.93

Shenyang Angang International Trade Steel and steel

Co. Ltd. products 62293.20 3479173.00

Shenyang Xiangyu New Materials Revenue from

Technology Co. Ltd. sales of materials 7235311.41

Shenyang Xiangyu New Materials Revenue from

Technology Co. Ltd. other labor 164739.04services

Tianjin Angang Steel Processing & Steel and steel

Distribution Co. Ltd. products 8663775.20 28642063.78

Tianjin Bengang Plate Processing & Steel and steel

Distribution Co. Ltd. products 278908612.03

Tianjin Bengang Plate Processing & Revenue from

Distribution Co. Ltd. other labor 530126.98services

Yantai Angang International Trading Steel and steel

Co. Ltd. products 9761989.29

Changchun FAW Angang Steel Steel and steel

Processing & Distribution Co. Ltd. products 9099871.53 15920873.36

Changchun FAW Angang Steel Logistics and

Processing & Distribution Co. Ltd. transportation 364.61 2971.66revenue

227Bengang Steel Plates Co. Ltd. Interim Report 2026

Related parties Content of relatedtransactions Current period Previous period

China Ordins Group Co. Ltd. Steel and steelproducts 297207796.00 166331.79

China Ordnance Materials Shenyang Steel and steel

Co. Ltd. products 8384140.07 98520719.33

China Ordnance Materials Steel and steel

West&South Co. Ltd. products 844767.93 2002438.54

2. Lease information of related parties

228Bengang Steel Plates Co. Ltd. Interim Report 2026

Company as the lessee：

Current period Previous period amount

Rental Rental

costs for costs for Variable

short-ter Variable short-ter lease

m leases lease m leases payments

Leased Asset and payments Interest

Increase and not Increase

Lessor Name Type leases of not included Rent paid expense

in

right-of- leases of included

Interest in

low-valu in the on lease low-valu in the Rent paid expense on right-of-

e assets measureme liabilities use e assets measurem lease liabilities use

with nt of lease assets with ent of assets

simplifie liabilities simplifie lease

d d liabilities

treatment treatment

Benxi Steel 2300 Hot

& Iron rolling product

8049080.523160255.478049080.523348358.04

(Group) Co. line related

Ltd. real estate

Land use right

Benxi Steel 7669068.17

& Iron square meter 27638772.0 18142807.5

6927638772.0618502019.80

(Group) Co. Land use right

Ltd. 42920.00

square meter

Benxi 1780 Hot 6912486.06 2433851.18 7175818.86 2578717.23

229Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period Previous period amount

Rental Rental

costs for costs for Variable

short-ter Variable short-ter lease

m leases lease m leases payments

Leased Asset and payments Interest

Increase and not Increase

Lessor Name leases of not included expense in leases of included Interest inType low-valu in the Rent paid on lease right-of-use low-valu in the

Rent paid expense on right-of-

e assets measureme liabilities assets e assets measurem

lease liabilities use

with nt of lease with ent of assets

simplifie liabilities simplifie lease

d d liabilities

treatment treatment

Beiying Steel rolling product

& Iron line related

(Group) Co. real estate

Ltd.Bengang Land use right

Group Co. 728282.30 4972711.56 588107.25 4972711.56 756809.43

Ltd. square meter

Angang

Group

Energy-Savin Machinery and

1026168.331035351.86828571.671400598.59

g Technology equipment

Services Co.Ltd.

230Bengang Steel Plates Co. Ltd. Interim Report 2026

Current period Previous period amount

Rental Rental

costs for costs for Variable

short-ter Variable short-ter lease

m leases lease Increase m leases payments Increase

Lessor Name Leased Asset

and payments Interest and not

Type leases of not included

in Interest in

low-valu in the Rent paid

expense right-of- leases of includedon lease low-valu in the Rent paid expense on right-of-

e assets measureme liabilities use e assets measurem lease liabilities use